ML093340088
| ML093340088 | |
| Person / Time | |
|---|---|
| Site: | Nine Mile Point, Ginna  |
| Issue date: | 11/20/2009 |
| From: | Barron H Constellation Energy Nuclear Group |
| To: | Document Control Desk, Office of Nuclear Reactor Regulation |
| References | |
| Download: ML093340088 (16) | |
Text
Henry B. Barron President, CEO & CNO-CENG Constellation Energy Nuclear Group, LLC 100 Constellation Way Suite 200C Baltimore, MD 21202 10 CFR 50.75 November 20, 2009 U.S. Nuclear Regulatory Commission Washington, DC 20555-0001 ATTENTION:
SUBJECT:
Document Control Desk Nine Mile Point Nuclear Station Unit No. 1; Docket No. 50-220 R. E. Ginna Nuclear Power Plant Docket No. 50-244 Submittal of Site-Specific SAFSTOR Decommissioning Cost Estimates (a)
Letter from Mr. H. B. Barron (CENG) to Document Control Desk (NRC),
dated July 29, 2009, Decommissioning Funding Status Plan
REFERENCE:
In Reference (a), Constellation Energy Nuclear Group, LLC (CENG) committed to provide the Nuclear Regulatory Commission (NRC) with site-specific SAFSTOR Decommissioning Cost Estimates (DCEs) for R. E. Ginna Nuclear Power Plant (Ginna) and Nine Mile Point Nuclear Station, Unit 1 (NMP1).
These DCEs are provided in Attachments (1A) and (2A), respectively. The DCE for NMPI is contained in the same site-specific study report as the DCE for Nine Mile Point Nuclear Station Unit 2. We have extracted the values for NMP 1 from Attachment (2A) and presented them in Column B of the relevant pages of Attachment (3). Each DCE contains three possible scenarios for decommissioning. We have selected the third scenario, which represents a 50-year SAFSTOR option. All DCE scenarios for both Ginna and NMPI are greater than the respective formula amounts, as required by 10 CFR 50.75(b)(1),
and are calculated from the formula set forth in 10 CFR 50.75(c).
Attachment (3) shows the NRC radiological decommissioning (license termination) funding assurance analyses and cash flows based on the DCEs in Attachments (IA) and (2A), assuming a 50-year SAFSTOR decommissioned scenario (Scenario 3 in each report). These*cash flows do not include the costs of dismantling non-radiological systems and structures or the costs of managing and storing spent fuel onsite.
We have not made a final determination of the decommissioning approach for Ginna and NMP 1. For the purpose of responding to the NRC. request to demonstrate adequacy of funding to meet regulatory requirements, a 50-year SAFSTOR option has been selected.
We may choose a different decommissioning option in the future, recognizing that the chosen option must meet NRC requirements for decommissioning fundingassurance.
AhoI
Document Control Desk November 20, 2009 Page 2 To determine funds available for decommissioning for Ginna and NMP1, the NRC radiological decommissioning funding assurance analyses and cash flows presented in Attachment (3) assume a 2%
annual real rate of return on trust fund dollars until plant shutdown and on remaining trust fund dollars through the decommissioning period. The funds required for decommissioning are based on the annual site-specific radiological decommissioning costs using a 50-year period of safe storage specifically described on Page 6 of Attachments (1A) and (2A) as Scenario 3. The DCEs present the results in 2009 dollars. The Decommissioning Trust Fund Balance reflects the trust fund balance escalated at 2% per year, less annual expenditures, during the SAFSTOR period and through the completion of radiological decommissioning.
Attachment (3) also compares the funding assurance, calculated using the NRC generic formula (NRC minimum) based on the Bureau of Labor Statistics published indices as of June 30, 2009 (preliminary for energy, and final for labor), to the funding assurance calculated using the site-specific DCE methodology, as allowed by 10 CFR 50.75(e)(1)(i). Attachments (IA) and (2A) contain proprietary information and we request that they be withheld from public disclosure pursuant to 10 CFR 2.390(a)(4) and 9.17(a)(4), as described in the affidavit by Mr. H. B. Barron, which is provided in Attachment (4). Attachments (1) and (2) are non-proprietary versions of Attachments (1A) and (2A).
For both Ginna and NMP1, the decommissioning assurance is provided by the prepayment method, coupled with an external trust fund, in accordance with 10 CFR 50.75(e)(1)(i). There are no additional amounts to be collected from ratepayers, nor are there any contracts relied upon pursuant to 10 CFR 50.75(e)(1)(v). Based on the site-specific SAFSTOR methodology, and the respective June 30, 2009 trust fund values, CENG meets all NRC radiological decommissioning funding requirements for both Ginna and NMP1.
The June 30, 2009 date was used because this was the date assumed in Reference (a).
There are no new regulatory commitments contained in this letter.
Document Control Desk November 20, 2009 Page 3 If there are any questions regarding this transmittal, please contact Bruce Montgomery at 410-470-3777 or Bruce.S.Montgomery@cengllc.com.
Sincerely, Henry B. Barron President, CEO & Chief Nuclear Officer Constellation Energy Nuclear Group, LLC STATE OF MARYLAND
- TO WIT:
COUNTY OF CALVERT I, Henry B. Barron, state that I am the President, CEO & Chief Nuclear Officer for Constellation Energy Nuclear Group, LLC, for Nine Mile Point Nuclear Station, LLC, and R. E. Girma Nuclear Power Plant, LLC, and that I am duly authorized to execute and file this submittal on behalf of these companies. To the best of my knowledge and belief, the statements contained in this document with respect to these companies are true and correct.
To the extent that these statements are not based on my personal knowledge, they are based upon information provided by employees and/or consultants of the companies.
Such information has been reviewed in accordance with company practice, and I believe it to be reliable.
Subscribed and sworn before me, a Notaryublic in and for the State of Maryland and County of
- 61. Z
,this-7i)M day of cyt',V
-ý, 2009.
WITNE'SS miy Ha~id and Notarial Seal:
My Commission Expires:
Notary Publc-,"
X~k~/ /, a,2911
/
Date HBB/EMT/bjd
Document Control Desk November 20, 2009 Page 4 Attachments:
(1)
R. E. Ginna Nuclear Power Plant Decommissioning Cost Estimate (Non-Proprietary)
(IA) R. E. Ginna Nuclear Power Plant Decommissioning Cost Estimate (Proprietary)
(2)
Nine Mile Point Nuclear Station Unit 1 Decommissioning Cost Estimate (Non-Proprietary)
(2A) Nine Mile Point Nuclear Station Unit 1 Decommissioning Cost Estimate (Proprietary)
(3)
R. E. Ginna Nuclear Power Plant and Nine Mile Point Nuclear Station Unit I NRC Radiological Decommissioning Funding Assurance Analyses and Cash Flows (4)
Affidavit by H. B. Barron cc:
D. V. Pickett, NRC R. V. Guzman, NRC S. J. Collins, NRC Without Attachments 1A and 2A Resident Inspector, NRC (Ginna)
Resident Inspector, NRC (Nine Mile Point)
A. L. Peterson, NYSERDA P. D. Eddy, New York State Department of Public Service
ATTACHMENT (1)
R. E. GINNA NUCLEAR POWER PLANT DECOMMISSIONING COST ESTIMATE (NON-PROPRIETARY)
Constellation Energy Nuclear Group, LLC November 20, 2009
ATTACHMENT 1 R. E. GINNA NUCLEAR POWER PLANT DECOMMISSIONING COST ESTIMATE (NON-PROPRIETARY)
The entire cost estimate is proprietary and is not included here.
I
ATTACHMENT (2)
NINE MILE POINT NUCLEAR STATION UNIT 1 DECOMMISSIONING COST ESTIMATE (NON-PROPRIETARY)
Constellation Energy Nuclear Group, LLC November 20, 2009
ATTACHMENT 2 NINE MILE POINT NUCLEAR STATION UNIT 1 DECOMMISSIONING COST ESTIMATE (NON-PROPRIETARY)
The entire cost estimate is proprietary and is not included here.
I
ATTACHMENT (3)
R. E. GINNA NUCLEAR POWER PLANT AND NINE MILE POINT NUCLEAR STATION UNIT 1 NRC RADIOLOGICAL DECOMMISSIONING FUNDING ASSURANCE ANALYSES AND CASH FLOWS Constellation Energy Nuclear Group, LLC November 20, 2009
ATTACHMENT 3 R. E. GINNA NUCLEAR POWER PLANT AND NINE MILE POINT NUCLEAR STATION UNIT 1 NRC RADIOLOGICAL DECOMMISSIONING FUNDING ASSURANCE ANALYSES AND CASH FLOWS Constellation Energy Nuclear Group NRC Financial Assurance As of June 30, 2009 Nine Mile Point Ginna Unit 1 Key dates based on 50-year SAFSTOR decommissioning (Scenario 3):
License expiration and shutdown date 9/18/2029 8/22/2029 Year of initial decommissioning disbursement 2028 2028 Year of final decommissioning disbursement 2078 2077 Radiological Decommissioning Trust Fund Activity ($000s):
Trust fund balance as of June 30, 2009
$207,715
$293,149 Trust fund earnings through 50-year SAFSTOR decommissioning period based on 2% real rate of return assuming disbursements at beginning of year 374,593 563,530 Less total disbursements in 2009 dollars per SO-year SAFSTOR site-specific study (Scenario 3)
(537.306)
(700,583)
Trust fund balance at end of decommissioning period S45ý003 NRC Minimum and Prompt Decommissioning Scenario ($000s):
NRC minimum (preliminary as of June 30, 2009)
$359,610
$514,324 Notes for this page and accompanying supporting schedules:
" The projected trust fund balances are based on a 50-year period of SAFSTOR (Scenario 3), which are within the 60-year guidelines set forth in 10 C.F.R. 50.75. The expenditures apply to only license termination radiological decommissioning costs, and do not include any other decommissioning costs, such as costs for spent fuel management or restoration of the site to "Greenfield" status.
" Strictly for the purpose of this analysis, earnings on the trust fund for the period July 1, 2009 through December 31, 2009 are assumed to be zero.
- The NRC minimum as of June 30, 2009 is based on NUREG 1307 Rev 13 updated through the published Bureau of Labor Statistics labor and energy indices as of June 30, 2009, except that the energy indices are preliminary since final indices were not published as of the date of this analysis and research. For additional informational purposes, the site-specific study total radiological License Termination Promot decommissioning costs in 2009 dollars (Scenario 1) are $363,464,000 and $552,489,000 for Ginna and Nine Mile Point Unit 1, respectively. The site-specific study License Termination costs for each scenario are greater than the NRC minimum.
I
ATTACHMENT 3 R. E. GINNA NUCLEAR POWER PLANT AND NINE MILE POINT NUCLEAR STATION UNIT 1 NRC RADIOLOGICAL DECOMMISSIONING FUNDING ASSURANCE ANALYSES AND CASH FLOWS R. E. Ginna Nuclear Power Plant (2 Pages)
Trust Fund Balances Based on 50-Year SAFSTOR Cash Flows and 2% Real Rate of Return In Thousands of Dollars Radiological Decommissioning Trust Fund Balance as Year of Beginning of Year (A)
Radiological Decommissioning Expenditures in 2009 Dollars (B) 2.00%
Annual Trust Fund Earnings (C) = ((A) - (B)) x 2%
2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 2036 2037 2038 2039 2040 2041 2042 2043 2044 2045
$207,715 211,870 216,107 220,429 224,838 229,335 233,921 238,600 243,372 248,239 253,204 258,268 263,433 268,702 274,076 279,558 285,149 290,852 296,669 295,956 270,123 254,487 255,586 256,707 257,850 258,047 244,952 247,522 250,144 252,818 255,545 258,327 261,165 264,059 267,011 270,022 4,154 4,237 4,322 4,409 4,497 4,587 4,678 4,772 4,867 4,965 5,064 5,165 5,269 5,374 5,482 5,591 5,703 5,817 5,803 5,297 4,990 5,011 5,033 5,056 5,060 4,803 4,853 4,905 4,957 5,011 5,065 5,121 5,178 5,236 5,295 5,355 Radiological Decommissioning Trust Fund Balance as of End of Year (D)= (A)-(B)+ (C)
$ 207,715 211,870 216,107 220,429 224,838 229,335 233,921 238,600 243,372 248,239 253,204 258,268 263,433 268,702 274,076 279,558 285,149 290,852 296,669 295,956 270,123 254,487 255,586 256,707 257,850 258,047 244,952 247,522 250,144 252,818 255,545 258,327 261,165 264,059 267,011 270,022 273,094 6,515 31,130 20,626 3,913 3,913 3,913 4,863 17,897 2,283 2,283 2,283 2,283 2,283 2,283 2,283 2,283 2,283 2,283 2
ATTACHMENT 3 R. E. GINNA NUCLEAR POWER PLANT AND NINE MILE POINT NUCLEAR STATION UNIT 1 NRC RADIOLOGICAL DECOMMISSIONING FUNDING ASSURANCE ANALYSES AND CASH FLOWS R. E. Ginna Nuclear Power Plant (2 Pages)
Trust Fund Balances Based on 50-Year SAFSTOR Cash Flows and 2% Real Rate of Return In Thousands of Dollars Radiological Decommissioning Trust Fund Balance as Year of Beginning of Year (A) 2046 273,094 2047 275,550 2048 277,959 2049 280,415 2050 282,560 2051 285,109 2052 287,708 2053 290,360 2054 293,064 2055 295,823 2056 298,636 2057 301,506 2058 304,433 2059 307,419 2060 310,465 2061 313,571 2062 316,740 2063 319,972 2064 323,269 2065 326,631 2066 330,061 2067 333,559 2068 337,128 2069 340,768 2070 344,120 2071 347,900 2072 351,755 2073 355,687 2074 359,698 2075 359,291 2076 342,570 2077 232,653 2078 102,836 Totals and Ending Fund Balance Radiological Decommissioning Expenditures in 2009 Dollars (B) 2,946 3,042 3,042 3,395 3,042 3,042 3,042 3,042 3,042 3,042 3,042 3,042 3,042 3,042 3,042 3,042 3,042 3,042 3,042 3,042 3,042 3,042 3,042 3,395 3,042 3,042 3,042 3,042 7,452 23,438 114,479 131,833 58,715
$537,306 2.00%
Annual Trust Fund Earnings (C)= ((A) - (B)) x 2%
5,403 5,450 5,498 5,540 5,590 5,641 5,693 5,746 5,800 5,856 5,912 5,969 6,028 6,088 6,148 6,211 6,274 6,339 6,405 6,472 6,540 6,610 6,682 6,747 6,822 6,897 6,974 7,053 7,045 6,717 4,562 2,016 882
$ 374,593 Radiological Decommissioning Trust Fund Balance as of End of Year (D) = (A)- (B) + (C) 275,550 277,959 280,415 282,560 285,109 287,708 290,360 293,064 295,823 298,636 301,506 304,433 307,419 310,465 313,571 316,740 319,972 323,269 326,631 330,061 333,559 337,128 340,768 344,120 347,900 351,755 355,687 359,698 359,291 342,570 232,653 102,836
$ 45,003 3
ATTACHMENT 3 R. E. GINNA NUCLEAR POWER PLANT AND NINE MILE POINT NUCLEAR STATION UNIT 1 NRC RADIOLOGICAL DECOMMISSIONING FUNDING ASSURANCE ANALYSES AND CASH FLOWS Nine Mile Point Nuclear Station - Unit 1 (2 Pages)
Trust Fund Balances Based on 50-Year SAFSTOR Cash Flows and 2% Real Rate of Return In Thousands of Dollars Radiological Decommissioning Trust Fund Balance as Year of Beginning of Year (A)
Radiological Decommissioning Expenditures in 2009 Dollars (B) 2.00%A Annual Trust Fund Earnings (C) = ((A) -(B)) x2%
2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 2036 2037 2038 2039 2040 2041 2042 2043 2044 2045
$ 293,149 299,012 304,992 311,092 317,314 323,660 330,133 336,736 343,471 350,340 357,347 364,494 371,784 379,219 386,804 394,540 402,431 410,479 418,689 421,119 379,144 354,928 358,426 361,994 365,633 355,328 348,470 353,632 358,897 364,268 369,747 375,334 381,034 386,848 392,777 398,826 5,863 5,980 6,100 6,222 6,346 6,473 6,603 6,735 6,869 7,007 7,147 7,290 7,436 7,584 7,736 7,891 8,049 8,210 8,257 7,434 6,959 7,028 7,098 7,169 6,967 6,833 6,934 7,037 7,143 7,250 7,359 7,471 7,585 7,702 7,820 7,941 Radiological Decommissioning Trust Fund Balance as of End of Year (D) =(A) -(B) +(C)
$ 293,149 299,012 304,992 311,092 317,314 323,660 330,133 336,736 343,471 350,340 357,347 364,494 371,784 379,219 386,804 394,540 402,431 410,479 418,689 421,119 379,144 354,928 358,426 361,994 365,633 355,328 348,470 353,632 358,897 364,268 369,747 375,334 381,034 386,848 392,777 398,826 404,993 5,827 49,409 31,175 3,530 3,530 3,530 17,272 13,691 1,772 1,772 1,772 1,772 1,772 1,772 1,772 1,772 1,772 1,774 4
ATTACHMENT 3 R. E. GINNA NUCLEAR POWER PLANT AND NINE MILE POINT NUCLEAR STATION UNIT 1 NRC RADIOLOGICAL DECOMMISSIONING FUNDING ASSURANCE ANALYSES AND CASH FLOWS Nine Mile Point Nuclear Station - Unit 1 (2 Pages)
Trust Fund Balances Based on 50-Year SAFSTOR Cash Flows and 2% Real Rate of Return In Thousands of Dollars Radiological Decommissioning Trust Fund Balance as Year of Beginning of Year (A) 2046 404,993 2047 411,276 2048 417,654 2049 424,201 2050 430,082 2051 436,878 2052 443,809 2053 450,840 2054 458,040
- 2055 465,385 2056 472,876 2057 480,517 2058 488,311 2059 496,260 2060 504,369
- 2061 512,640 2062 521,076 2063 529,681 2064 538,458 2065 547,411 2066 556,542 2067 565,857 2068 575,354 2069 585,045 2070 594,132 2071 604,198 2072 614,401 2073 624,505 2074 617,329 2075 556,588 2076 329,902 2077 196,379 Totals and Ending Fund Balance Radiological Decommissioning Expenditures in 2009 Dollars (B) 1,781 1,812 1,770 2,552 1,770 1,770 1,809 1,781 1,781 1,781 1,781 1,781 1,781 1,781 1,781 1,781 1,781 1,781 1,781 1,781 1,781 1,784 1,781 2,563 1,781 1,844 2,141 19,280 71,655 233,154 137,374 43,344
$ 700,583 2.00%
Annual Trust Fund Earnings (C)= ((A) - (B)) x 2%
8,064 8,189 8,318 8,433 8,566 8,702 8,840 8,981 9,125 9,272 9,422 9,575 9,731 9,890 10,052 10,217 10,386 10,558 10,734 10,913 11,095 11,281 11,471 11,650 11,847 12,047 12,245 12,104 10,913 6,469 3,851 3,061
$ 563,530 Radiological Decommissioning Trust Fund Balance as of End of Year (D) = (A) - (B) + (C) 411,276 417,654 424,201 430,082 436,878 443,809 450,840 458,040 465,385 472,876 480,517 488,311 496,260 504,369 512,640 521,076 529,681 538,458 547,411 556,542 565,857 575,354 585,045 594,132 604,198 614,401 624,505 617,329 556,588 329,902 196,379 156,096
$ 156,096 5
ATTACHMENT (4)
AFFIDAVIT BY H. B. BARRON Constellation Energy Nuclear Group, LLC November 20, 2009
UNITED STATES OF AMERICA NUCLEAR REGULATORY COMMISSION In the Matter of
))
Constellation Energy Nuclear Group, LLC, et al.
)
AFFIDAVIT I, Henry B. Barron of Constellation Energy Group, Inc., parent of Constellation Energy Nuclear Group, LLC, for Nine Mile Point Nuclear Station, LLC, and R. E. Ginna Nuclear Power Plant, LLC (together, the CENG Companies), do hereby affirm and state:
- 1.
I am authorized to execute this affidavit on behalf of the CENG Companies.
- 2.
The CENG Companies are providing information in support of their submittal of site-Specific SAFSTOR decommissioning cost estimates. The documents being provided in Attachments (IA) and (2A) contain proprietary financial information and financial projections related to the ownership and operation of the CENG Companies' generation assets. These documents constitute proprietary commercial and financial information that should be held in confidence by the.NRC pursuant to the policy reflected in 10 CFR 2.390(a)(4) and 10 CFR 9.17(a)(4), because:
- i.
This information is and has been held in confidence by the CENG Companies.
ii.
This information is of a type that is customarily held in confidence by the CENG Companies, and there is a rational basis for doing so because the information contains sensitive financial information concerning the CENG Companies.
iii.
This information is being transmitted to the NRC voluntarily and in confidence.
iv.
This information is not available in public sources and could not be gathered readily from other publicly available information.
- v.
Public disclosure of this information would create substantial harm to the competitive position of the CENG Companies by disclosing their internal financial projections.
- 3.
Accordingly, the CENG Companies request that the designated documents be withheld from public disclosure pursuant to the policy reflected in 10 CFR 2.390(a)(4) and 10 CFR 9.17(a)(4).
Henry B. Barron Subscribed and sworn before me, a Notary Public, in and for the State of Maryland and County of Calvert, this
__day of AJ6 0 j, 2009.
WITNESS my hand and Notarial Seal:
Notary Public My Commission Expires:
01_
4r)
Wendy L. Hunter NOTARY PUBUC Calvert County, Maryland My Commission Expires 01/01/10