ML20087M715

Decommissioning Funding Status Report

ML20087M715
Person / Time
Site:	Millstone
Issue date:	03/26/2020
From:	Mark D. Sartain Dominion Energy Nuclear Connecticut
To:	Document Control Desk, Office of Nuclear Reactor Regulation
References
20-112
Download: ML20087M715 (7)

Text

Dominion Energy Nuclear Connecticut, Inc.

5000 Domin ion Boulevard, Glen Allen, VA 23060 Dominion Energy.com

~

Dominion

iiiiii" Energy March 26, 2020 U.S. Nuclear Regulatory Commission Attention

Document Control Desk Washington, DC 20555 DOMINION ENERGY NUCLEAR CONNECTICUT, INC.

MILLSTONE POWER STATION UNIT 1 DECOMMISSIONING FUNDING STATUS REPORT Serial No. :

NRA/ENC:

Docket No.:

License No.:

20-112 RO 50-245 DPR-21 Pursuant to 10 CFR 50. 75(f)(1) and 10 CFR 50.82(a)(8)(v)-(vii), Dominion Energy Nuclear Connecticut, Inc. (DENC), is providing this report on the status of decommissioning funding for Millstone Power Station Unit 1 (MPS1 ). provides the following information for MPS1:

Table I Decommissioning Funding Status Report for MPS1:

Summary Information as of December 31, 2019 Table II Decommissioning Funding Status Report for MPS1:

Annual Cash Flow Analysis Starting January 1, 2020 through End of Decommissioning The following information is provided in support and as part of this filing:

1.

The escalation of decommissioning costs from the Cost Study's 2019 dollars to 2020 dollars is 1.83% and is based upon the average of CPI-U rates, Bureau of Labor Statistics, FCPIU.US CPI: Consumer Price Index for All Urban Consumers - (Index 1982-84= 100, SA) for that period.

2.

The escalation rate of decommissioning costs, shown in Table II is 0% based on assuming a 2% Real Rate of Return.

3.

The growth rate on Trust Funds is the allowed 2% Real Rate of Return over the escalation rate.

4.

No rate regulatory authority citation for MPS1 is referenced because MPS1 is a merchant unit.

5.

There are no contracts upon which DENC is relying under paragraph 10 CFR

50. 75(e)(1 )(v) and there were no modifications to the current method of providing financial assurance since the last submitted report.

Serial No.: 20-112 Docket No.: 50-245 MPS1 Decommissioning Funding Status Report Page 2 of 3

6.

There are no annual funding amounts for MPS1.

7.

Trust Fund balances shown in this report are market value and after-tax on realized gains and losses. The Trust Fund balances have not been adjusted for unrealized gain or loss positions that are not currently taxable.

8.

Since the previous annual submittal on March 26, 2019 (Serial No.19-048, ADAMS Accession No. ML19092A293) for MPS1 there have been no material changes to the Trust agreements established for nuclear decommissioning.

Please contact Mr. Craig D. Sly at (804) 273-2784 if you have any questions or require additional information.

Sincerely, Mark. D. Sartain Vice President - Nuclear Engineering and Fleet Support Dominion Energy Nuclear Connecticut, Inc.

Attachment:

1. Decommissioning Funding Status Report for MPS1: Summary Information as of December 31, 2019 Commitments made in this letter: None

Serial No.: 20-112 Docket No.: 50-245 MPS1 Decommissioning Funding Status Report Page 3 of 3 cc:

U. S. Nuclear Regulatory Commission, Region I 2100 Renaissance Blvd, Suite 100 King of Prussia, PA 19406-2713 Mr. T. H. Carter NRC Senior Project Manager - Millstone Power Station, Unit 1 U. S. Nuclear Regulatory Commission Two White Flint North Mail Stop T-8 F5 11545 Rockville Pike Rockville, MD 20852-2738

Serial No.: 20-112 ATTACHMENT 1 Decommissioning Funding Status Report for MPS1:

Summary Information as of December 31, 2019 Millstone Power Station - Unit 1 Dominion Energy Nuclear Connecticut, Inc. (DENC)

Serial No.: 20-112 Docket No.: 50-245, Page 1 of 3 Table I.

Decommissioning Funding Status Report for MPS1: Summary Information as of December 31, 2019 Decommissioning Funding Status Report for MPS1 Summary Information as of December 31, 2019 10 CFR 50.82 (a)(8)(v)-(vii)

(in millions)

Decommissionin ~ Trust Fund Balances 10 CFR Reference J 50.82(a)(8)(v)(A)

J50.82(a)(8)(vii)(A)

Fund Balance Type of Trusts Comments 622.1 Unit 1 qualified fund balance As of:

12/31/2019 Unit 1 non-qualified fund balance As of:

12/31/2019 1.9 Less costs incurred but not yet billed to Trust Actual Cost in:

2019 Dollars 620.2 Adiusted decommissionino fund balance As of:

12/31/2019 Other Financial Assurance Methods Being Relied Upon 10 CFR Reference JS0.82(a)(8)(v)(A)

I None Prior Years Decommissionin!l Expenditures 10 CFR Reference JS0.82(a)(8)(v)(A)

I Total License Term Spent Fuel Mgmt Site Restoration Comments 3.7 $

0.2 $

3.5 $

2019 Cost in:

2019 Dollars 95.2 $

48.6 46.6 $

2001-2018 Cost in:

As-Soent Dollars 98.9 $

48.8 50.1 Total Prior Year in:

As-Soent Dollars Prior Year Decommissioning Expenditures Variance to Estimated Cost 10 CFR Reference JS0.82(a)(8)(v)(B)

I Total License Term Spent Fuel Mgmt Site Restoration Comments 3.7 $

Actual Cost in 2019 Dollars 4.8 $

NRC Auth $ in 2019 Dollars

/1.2) $

Variance: Underrun to NRC Authorized Expenditures Remaining Decommissioning Estimated Cost 10 CFR Reference JS0.82(a)(8)(v)(B)

J50.82(a)(8)(vii)(B)

Total License Term Spent Fuel Mgmt Site Restoration Comments 503.6 363.5 $

132.5 7.6 Estimate in:

2020 Dollars Decommissioning Criteria Upon Which the Estimate is Based 10 CFR Reference 1S0.82(a)(8)(v)(B)

I SAFSTOR Anv Modification To Method of Providin!l Financial Assurance 10 CFR Reference 1S0.82(a)(8)(v)(C)

I None Any Material Chanaes To Trust Agreement Since Previous Report 10 CFR Reference 1S0.82(a)(8)(v)(D)

I None Need For Additional Financial Assurance 10 CFR Reference JS0.82(a)(8)(vi)

J50.82(a)(8)(vii)(C)

None See Annual Cash Flow Analysis in Table II Inputs to Remaining Cost and Funding Analysis I

I 2020 Start year of Remaining Cost and Funding analysis 1.83%

Escalate study dollars from Study Year to Start Year of Analysis usinq an aYeraqe of CPI rates 0.00%

Escalation rate 2020

& Bevond 2.00%

Fund orowth rate 2020

& Beyond /Reflects NRC allowed 2% Real Rate of Return)

Proiected annual exoenditures - see Annual Cash Flow Analvsis in Table II Table I Notes:

1) Previous decommissioning expenditures represent the withdrawals from the nuclear decommissioning trusts made by Dominion Energy Nuclear Connecticut, Inc. These expenditures do not include the withdrawals made by the former owners of MPS1.

2) Expenditures include withdrawals for spent fuel management, consistent with DENC's previous notices to the NRC, as well as allowed ordinary administrative costs.

3) 2019 NRC Authorized expenditures of $4.849 million are based on $4.6 million (rounded) in 2017 dollars as described in DENC's submittal dated August 22, 2017 (ML17240A170).

Serial No.: 20-112 Docket No.: 50-245, Page 2 of 3 Table II.

Decommissioning Funding Status Report for MPS1: Annual Cash Flow Analysis Starting January 1, 2020 through End of Decommissioning Decommissioning Funding Status Report for MPS1 Annual Cash Flow Analysis Starting January 1, 2020 through End of Decommissioning 10 CFR 50.82 (a)(8)(v)-(vii)

(in nillions}

Colurm 1 Colurm 2 Colurm 3 Colurm 4 Colurm 5 Colurm 6 Colurm7 Beginning Earnings Remaining Remaining Remaining Remaining End of on License Termination Spent Fuel Mgnt Site Restoration SAFSTOR of Year Trust Funds Expendttures Expenditures Expenditures Expenditures Year Year Balance (Reflects 2% RRoRl (Reflects 0% Escl

!Reflects 0% Escl (Reflects 0% Escl (Reflects 0% Escl Balance 2020 620.2 12.4 1.0 3.6 4.6 627.9 2021 627.9 12.5 1.0 3.6 4.6 635.8 2022 635.8 $

12.7 1.0 3.6 4.6 643.9 2023 643.9 12.8 1.0 3.6 4.6 652.1 2024 652.1 13.0 1.0 3.6 4.6 660.5 2025 660.5 13.2 1.0 3.6 4.6 669.1 2026 669.1 13.3 1.0 3.6 4.6 677.8 2027 677.8 13.5 1.0 3.6 4.6 686.7 2028 686.7 13.7 1.0 3.6 4.6 695.8 2029 695.8 13.9 1.0 3.6 4.6 705.1 2030 705.1 14.1 1.0 3.6 4.6 714.6 2031 714.6 14.2 1.0 3.6 4.6 724.2 2032 724.2 $

14.4 1.0 3.6 4.6 734.0 2033 734.0 $

14.6 1.0 3.6 4.6 744.1 2034 744.1 14.6 1.6 $

22.1 23.6 735.1 2035 735.1 14.5 1.5 $

21.6 23.1 726.4 2036 726.4 14.4 11.5 11.5 $

729.3 2037 729.3 14.5 10.6 10.6 $

733.2 2038 733.2 14.6 10.0 10.0 $

737.8 2039 737.8 14.7 0.7 0.9 1.6 $

751.0 2040 751.0 15.0 0.7 0.9 1.6 $

764.4 2041 764.4 $

15.3 0.7 0.9 1.6 $

778.1 2042 778.1 15.5 0.7 0.9 1.6 $

792.0 2043 792.0 $

15.8 0.7 0.9 1.6 $

806.3 2044 806.3 16.1 0.7 0.9 1.6 $

820.8 2045 820.8 16.3 5.7 0.9 6.6 $

830.6 2046 830.6 $

16.4 $

20.6 20.6 826.3 2047 826.3 $

15.9 $

57.8 57.8 784.5 2048 784.5 15.1 58.5 58.5 741.1 2049 741.1 14.1 70.1 0.1 70.2 685.0 2050 685.0 13.2 $

49.4 0.9 $

50.3 $

647.9 2051 647.9 12.6 $

29.7 2.2 $

32.0 628.5 2052 628.5 12.3 $

23.3 2.4 $

25.7 615.1 2053 615.1 12.1 16.0 1.4 $

17.5 $

609.8 2054 609.8 12.1 4.2 0.4 4.7 $

617.3 2055 617.3 $

12.3 1.6 0.1 1.6 $

628.0 2056 628.0 $

12.6 640.5 2057 640.5 $

12.8 653.3 2058 653.3 13.1 666.4 2059 666.4 13.3 679.7 2060 679.7 13.6 693.3 2061 693.3 13.9 707.2 2062 707.2 14.1 721.3 2063 721.3 14.4 735.8 2064 735.8 14.7 750.5 2065 750.5 $

15.0 765.5 2066 765.5 $

15.3 $

780.8 2067 780.8 $

15.6 $

796.4 2068 796.4 $

15.9 $

812.3 2069 812.3 $

16.2 $

828.6 2070 828.6 $

16.5 5.3 5.3 $

839.8 Remaining $ In 2020 Dollars 363.5 $

132.5 $

7.6 $

503.6 Est. Fund Balance (end of Decorrmlsslonlng) (In Future$ escalated at 0.0% & 2.0% Real Rate of Return Fund Growth Rate) 839.8 Est. Fund Balance (end of Decorrmlsslonlng) discounted to 2020 Dollars Discount Rate~ 2.00%

312.0

Serial No.: 20-112 Docket No.: 50-245, Page 3 of 3 Table II Definitions:

Column 1 Column 2 Column 3 Column 4 Column 5 Column 6 Column 7 Beginning of Year Balance:

Reflects the beginning-of-year Trust Fund balance at a 0.0% cost escalation rate and a 2.0% Real Rate of Return (RRoR) on fund growth.

Earnings on Trust Funds:

Reflects earnings on funds remaining in the trust. A 2.0% RRoR Fund growth rate is used for 2020 through 2071 which reflects the allowed 2.0% RRoR over a 0.0%

cost escalation rate.

The annual 2.0% RRoR earnings are calculated on the beginning balance less 50% of the projected annual expenditure for each year.

Remaining License Termination Expenditures:

Reflects the annual License Termination Plan cost portion at a 0.0% escalation rate from the Site Specific Estimate.

Remaining Spent Fuel Management Expenditures:

Reflects the annual Irradiated Fuel Management Plan cost portion at a 0.0%

escalation rate from the Site Specific Estimate. This column provides information on the status of funding for managing irradiated fuel as required by 10 CFR 50.82( a)(B)(vii).

Remaining Site Restoration Expenditures:

Reflects the annual Site Restoration Plan cost portion at a 0.0% escalation rate from the Site Specific Estimate.

Remaining SAFSTOR Expenditures:

Reflects the annual SAFSTOR Decommissioning Plan cost at a 0.0% escalation rate from the Site Specific Cost Estimate.

End of Year Balance:

Reflects the end of year Trust Fund balance after projected earnings are added and projected expenditures are deducted for the year specified at a 0.0%

escalation rate and a 2.0% RRoR on fund growth.

Tables I and II General Notes: (Any minor differences in totals are due to rounding.)

1) Trust Fund balance reflects market value on December 31, 2019, net of taxes on realized gains and losses.

2) The 2.0% RRoR is based on the rate allowed by 10 CFR 50.75(e)(1)(i) and 10 CFR 50.82(a)(8)(vi).

3) The funding method for providing financial assurance for decommissioning MPS1 remains prepayment. The cash flow analysis in Table II demonstrates that the amounts accumulated in the Trust are sufficient, with credited earnings at a 2.0% RRoR, to cover the estimated cost of radiological decommissioning, spent fuel management and site restoration.