NL-19-0283, Financial Assurance Requirements for Decommissioning Nuclear Power Reactors
| ML19091A295 | |
| Person / Time | |
|---|---|
| Site: | Farley  |
| Issue date: | 04/01/2019 |
| From: | Gayheart C Southern Nuclear Operating Co |
| To: | Document Control Desk, Office of Nuclear Reactor Regulation |
| References | |
| NL-19-0283 | |
| Download: ML19091A295 (10) | |
Text
A Southern Nuclear APR 0 1 2019 Docket Nos.: 50-348 50-364 U. S. Nuclear Regulatory Commission ATTN: Document Control Desk Washington, D. C. 20555-0001 Regulatory Affa1rs Joseph M. Farley Nuclear Plant, Units 1 & 2 Financial Assurance Requirements for Decommissioning Nuclear Power Reactors Ladies and Gentlemen:
3535 Colonnade Parkway B1rmmgham, AL 35243 205 992 5000 tel 205 992 7601 fax NL-19-0283 Pursuant to 10 CFR 50.75(f)(1), each power reactor licensee is required to report to the NRC the status of its decommissioning funding for each reactor or part of each reactor it owns on a calendar year basis, beginning on March 31, 1999, and every two years thereafter. Southern Nuclear Operating Company (Southern Nuclear) holds operating licenses NPF-2 and NPF-8 for the Joseph M. Farley Nuclear Plant Unit 1 and Unit 2, respectively, owned by Alabama Power Company. Accordingly, Southern Nuclear provides the enclosed submittal in accordance with the requirements of 10 CFR 50.75(f)(1).
This letter contains no NRC commitments. If you have any questions, please contact Jamie Coleman at 205.992.6611.
Respectfully submitted, Cheryl A.
eart Regulatory Affairs Director efb/scm
Enclosure:
Alabama Power Company Response
NRC Decommissioning Fund Status Report NL-19-0283 Page 2 cc:
Regional Administrator, Region II NRR Project Manager, Farley Senior Resident Inspector, Farley SNC Record RType: CFA04.054
Joseph M. Farley Nuclear Plant Financial Assurance Requirements for Decommissioning Nuclear Power Reactors Alabama Power Company Response
Christopher R. Blake, CPA, CMA Assistant Treasurer Treasury Services March 4, 2019 Docket Nos.:
50-348 50-364 600 North 18th Street Post Office Box 2641 Birmingham, Alabama 35291-0040 Tel 205.257.3618 Fax 205.257 2622 U.S. Nuclear Regulatory Commission ATTN: Document Control Desk Washington, D.C. 20555 Joseph M. Farley Nuclear Plant Financial Assurance Requirements for Decommissioning Nuclear Power Reactors (10 CFR 50.75(f)(1))
Dear Ladies and Gentlemen:
ALABAMA <<\\
POWER A SOUTHERN COMPANY Pursuant to 10 CFR 50.7S(f)(l), each power reactor licensee is required to report to the NRC the status of its decommissioning funding for each reactor or part of each reactor it owns on a calendar year basis, beginning on March 31, 1999, and every two years thereafter.
Alabama Power Company (APC) hereby submits the enclosed information in accordance with 10 CFR 50.75(f)(1) for operating licenses NPF-2 and NPF-8 issued for Farley Nuclear Plant Unit 1 and 2, respectively. Southern Nuclear Operating Company, as the operating licensee and as an agent for the owners of Farley Nuclear Plant, is providing this information to the NRC on behalf of APC.
Based on the information presented herein, there is reasonable assurance that the funding necessary for decommissioning the Farley Nuclear Plant, consistent with the NRC prescribed minimum set forth in 10 CFR 50.75(c), will be available on the expiration date of operating licenses NPF-2 and NPF-8.
Please advise if you have any questions or comments regarding the information provided herein.
Respectfully submitted, Christopher R. Blake Enclosure Page 1 of7
1 2
3 4
5 6
7 NOTES:
Enclosure Alabama Power Company Ownership Percentage -100%
Unit 1 10 CFR 50.7S(f)(1) Requirement The NRC minimum decommissioning estimate,
$483,966,000 2 pursuant to 10 CFR 50.75(b) and (c). 1 The amount accumulated at the end of the calendar year preceding the date of the report
$429,795,326 for items included in 10 CFR 50.7S(b) and (c).
A schedule of the annual amounts remaining to See Schedule in be collected; for items in 10 CFR 50.75(b) and (c).
The assumptions used regarding:
(a) rates of escalation in decommissioning 4.5%
costs; (b) rates of earnings on decommissioning 7.0%
funds; (c) real rate of return; and 2.5% 3 (d) rates of other factors used in funding N/A projections.
Any contracts upon which the licensee is relying N/A pursuant to 10 CFR 50.75(e)(1)(v).
Any modifications to a licensee's current method None of providing financial assurance occurring since the last submitted report.
Any material changes to trust agreements.
See Attachment 3 Unit 2
$483,966,000 2
$415,793,077 See Schedule in 4.5%
7.0%
2.5% 3 N/A N/A None See Attachment 3 1 The NRC formulas in section 10 CFR 50.75(c) include only those decommissioning costs incurred by licensees to remove a facility or site safely from service and reduce residual radioactivity to levels that permit: (1) release of the property for unrestricted use and termination of the license; or (2) release of the property under restricted conditions and termination of the license. The cost of dismantling or demolishing non-radiological systems and structures is not included in the NRC decommissioning cost estimates.
The costs of managing and storing spent fuel on-site until transfer to DOE are not included in the cost formulas.
2 This amount is based on NUREG-1307, Rev. 17, for the burial factor, the December 2018 BLS data for labor and the September 2018 BLS data for energy.
3 The real rate of return of 2.5% was established by the Alabama Public Service Commission's Order pertaining to Informal Docket U-3295 and subsequent submittals pursuant to that Order, most recently on October 28, 2008.
Page 2 of7 Schedule of the Annual Amounts Remaining to be Collected - Unit 1 Page 3 of7
Year 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 2036 2037 Schedule of the Annual Amounts Remaining to be Collected Beginning Fund Balance 429,795,326 460,345,147 493,033,457 528,009,948 565,434,793 605,479,378 648,327,083 694,174,128 743,230,466 795,720,747 851,885,349 911,981,472 976,284,324 1,045,088,376 1,118,708,711 1,197,482,470 1,281,770,392 1,371,958,468 1,468,459,710 Alabama Power Company Farley Nuclear Plant Unit 1 Fund Fund Earnings Contributions 30,085,673 464,149 32,224,160 464,149 34,512,342 464,149 36,960,696 464,149 39,580,436 464,149 42,383,556 464,149 45,382,896 464,149 48,592,189 464,149 52,026,133 464,149 55,700,452 464,149 59,631,974 464,149 63,838,703 464,149 68,339,903 464,149 73,156,186 464,149 78,309,610 464,149 83,823,773 464,149 89,723,927 464,149 96,037,093 464,149 102,792,180 464,149 Page 4 of7 Ending Fund Balance 429,795,326 460,345,147 493,033,457 528,009,948 565,434,793 605,479,378 648,327,083 694,174,128 743,230,466 795,720,747 851,885,349 911,981,472 976,284,324 1,045,088,376 1,118,708,711 1,197,482,470 1,281,770,392 1,371,958,468 1,468,459,710 1,571,716,039 Minimum Decommissioning Fund Estimate 483,966,000 505,744,470 528,502,971 552,285,605 577,138,457 603,109,688 630,249,624 658,610,857 688,248,345 719,219,521 751,584,399 785,405,697 820,748,953 857,682,656 896,278,376 936,610,903 978,758,393 1,022,802,521 1,068,828,635 1,116,925,923 Schedule of the Annual Amounts Remaining to be Collected-Unit 2 Page 5 of?
Year 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 2036 2037 2038 2039 2040 2041 Schedule of the Annual Amounts Remaining to be Collected Beginning Fund Balance 415,793,077 445,300,597 476,873,643 510,656,802 546,804,782 585,483,120 626,868,943 671,151,773 718,534,401 769,233,813 823,482,184 881,527,941 943,636,901 1,010,093,488 1,081,202,036 1,157,288,182 1,238,700,359 1,325,811,388 1,419,020,189 1,518,753,607 1,625,468,363 1,739,653,152 1,861,830,877 Alabama Power Company Farley Nuclear Plant Unit 2 Fund Fund Earnings Contributions 29,105,515 402,004 31,171,042 402,004 33,381,155 402,004 35,745,976 402,004 38,276,335 402,004 40,983,818 402,004 43,880,826 402,004 46,980,624 402,004 50,297,408 402,004 53,846,367 402,004 57,643,753 402,004 61,706,956 402,004 66,054,583 402,004 70,706,544 402,004 75,684,143 402,004 81,010,173 402,004 86,709,025 402,004 92,806,797 402,004 99,331,413 402,004 106,312,752 402,004 113,782,785 402,004 121,775,721 402,004 130,328,161 0
Page 6 of7 Ending Fund Balance 415,793,077 445,300,597 476,873,643 510,656,802 546,804,782 585,483,120 626,868,943 671,151,773 718,534,401 769,233,813 823,482,184 881,527,941 943,636,901 1,010,093,488 1,081,202,036 1,157,288,182 1,238, 700,359 1,325,811,388 1,419,020,189 1,518,753,607 1,625,468,363 1,739,653,152 1,861,830,877 1,992,159,038 Minimum Decommissioning Fund Estimate 483,966,000 505,744,470 528,502,971 552,285,605 577,138,457 603,109,688 630,249,624 658,610,857 688,248,345 719,219,521 751,584,399 785,405,697 820,748,953 857,682,656 896,278,376 936,610,903 978,758,393 1,022,802,521 1,068,828,635 1,116,925,923 1,167,187,590 1,219,711,031 1,274,598,028 1,331,954,939 Material Changes to Trust Agreement June 2017 Added Harbert Seniors Housing Fund I as an Alternative Investment June 2017 Added Core Plus allocation to the Regions Fixed Income investment December 2017 Engaged StepStone Group to advise the Trust in the strategic diversification and timing of Alternative Investments August 2018 Added StepStone Capital Partners Fund IV as an Alternative Investment December 2018 Added Harbert Seniors Housing Fund II as an Alternative Investment December 2018 Added StepStone Tactical Growth Fund II as an Alternative Investment Page 7 of7