PLA-7584, NRC Decommissioning Funding Status Report for 12/31/2016
| ML17095A528 | |
| Person / Time | |
|---|---|
| Site: | Susquehanna  |
| Issue date: | 03/30/2017 |
| From: | Berryman B Susquehanna, Talen Energy |
| To: | Document Control Desk, Office of Nuclear Reactor Regulation |
| References | |
| PLA-7584 | |
| Download: ML17095A528 (9) | |
Text
'MAR 3 0 2017 Brad Berryman Site Vice President
-U. S. Nuclear Regulatory Commission Attn: Document Control Desk Washington, DC 20555-0001 Susquehanna Nuclear, LLC 769 Salem Boulevard Berwick, PA 18603 Tel. 570.542.2904 Fax 570.542.1504 Brad.Berryman@TalenEnergy.com SUSQUEHANNA STEAM ELECTRIC STATION NRC DECOMMISSIONING FUNDING STATUS REPORT PLA-7584
'ALEN~
I I
'"d ENERGY 10 CFR 50.75 Docket Nos. 50-387 and 50-388 This letter provides decommissioning information for the Susquehanna Nuclear, LLC's ninety percent interest in Susquehanna Steam Electric Station (SSES) Unit 1 and Unit 2 as required by 10 CFR 50.75, "Reporting and Recordkeeping for Decommissioning Planning," Section (f)(l).
The Attachment to this letter contains the Susquehanna decommissioning funding status report for December 31, 2016, submitted biennially to comply with 10 CFR 50.75(f)(l).
If you have any questions regarding the decommissioning report, please contact Mr. Jason Jennings, Manager of Nuclear Regulatory Affairs, at (570) 542-3155.
There are no regulatory commitments identified in this letter.
Sincerely, Brad Berryman Site Vice President
Attachment:
NRC Decommissioning Funding Status Report December 31, 2016 Copy:
NRC Region I Ms. T. E. Hood, NRC Project Manager Ms. L. H. Micewski, NRC Sr. Resident Inspector Mr. M. Shields, PA DEP/BRP
Electronic Copy:
S. A. Bella B. Berryman R.P.Carroll K.A.Dum N. E. Fairchild (NSRB)
R. J. Franssen J. R. Jennings M.Krick C. E.' Manges D. D. Obie V. Powers T. J. Solt DCS GENPL4 Document Control Desk PLA-7584
Attachment to PLA-7584 NRC Decommissioning Funding Status Report December 31, 2016 to PLA-7 5 84 Page 1of3 NRC Decommissioning Funding Status Report December 31, 2016 Susquehanna Nuclear, LLC Susquehanna Steam Electric Station Susquehanna Nuclear, LLC (Susquehanna) hereby submits this Decommissioning Report in compliance with 10 CFR 50.75(f)(l) for its 90% share of Susquehanna Steam Electric Station (SSES) Unit 1 and Unit 2.
Susquehanna has analyzed its current funding levels for both SSES units and concluded that these funding levels will be sufficient to pay for the decommissioning costs of each unit at the time permanent termination of operations is expected for each unit, consistent with the NRC prescribed minimum set forth in 10 CFR 50.75(c).
Information is submitted to provide Financial Assurance
- 1. The minimum amount of decommissioning funds estimated to be required pursuant to 10 CFR 50.75 (b) and (c).
At December 31, 2016. to PLA-7584 Page 2of3 Unit# 1 Unit#2
$600,088,500
$600,088,500 Susquehanna Nuclear, LLC's calculation of the NRC minimum formula is reflected in Exhibit 1 (behind this Attachment).
- 2. The amount accumulated at the end of the calendar year preceding the date of the report, net of taxes paid on realized gains and losses, for items included in 10 CFR 50.75 (b) and (c).
Market Value at December 31, 2016.
- 3. Annual amounts remaining to be collected.
- 4. The assumptions used regarding escalation in decommissioning cost, rates of earnings on decommissioning funds, and rates of other factors used in funding projections.
Estimated Inflation rate for decommissioning costs Estimated Real Earnings rate on decommissioning funds per 10 CFR 50.75(e)(l)(ii) which are credited up to the time of permanent termination of operations along with a pro-rata credit during the dismantlement period.
Rates of other factors used in funding projections
- 5. Any power sale contracts upon which licensee is relying to provide financial assurance.
- 6. Modifications to licensee's method of providing financial assurance since previous report.
$488,857,613
$544,458,258
$0
$0 0%
0%
2.0%
2.0%
Information is submitted to provide Financial Assurance
- 7. Material changes to trust agreement. to PLA-7 5 84 Page 3of3 Unit# 1 Unit #2 None None to PLA-7584 Exhibit 1 Page 1of3 Calculation of Escalation Factors Used in Computation of Minimum Financial Assurance Amount for Decommissioning Susquehanna Steam Electric Station Units land 2 Boiling Water Reactor (BWR)
Escalation Factor Formula-0.65(L) + 0.13(E) + 0.22(B)
Escalation= (.65 x 2.780) + (.13 x 1.870) + (.22 x 13.132)
Escalation= (1.807 +.243 + 2.889) = 4.939 (L) - Labor - (Bureau of Labor Statistics, Table 6, Compensation, Employment Cost Index, for total compensation, private industry workers, *by bargaining status, region and area size)
Northeast region - December 2016 Index Number December 2005 Index Number December 2005 Base L=
128.7 times 2.16 Equals 100.0 128.7 100.0 2.16 2.780 (E) - Energy - (Producer Price Index Commodities, Series ID:
WPU0543 and WPU0573)
E =
(.54P +.46F)
E =
- (.54 x 1.883) + (.46 x 1.854)
E =
. 1.017 +.853 = 1.870 P - Industrial Power, 500 kW Demand - (Commodity 0543)
December 2016 Index Number 215.0 January 1986 Index Number 114.2 (1)
P =
215.0 equals 1.883 114.2 to PLA-7584 Exhibit 1 Page 2of3 F - Light Fuel Oils - (Commodity 0573)
F=
(B) Waste Burial December 2016 Index Number 152.0 January 1986 Index Number 82.0 152.0 equals 82.0 1.854 NUREG-1307, Rev. 16, "NRC Report on Waste Burial Charges" Table 2.1 Generators Located in the Unaffiliated States 13.132 (1) Represents the national base value of P at January 1986. The base value of P is no longer determined on a regional basis.
to PLA-7584 Exhibit 1 Page 3of3 Susquehanna Nuclear, LLC Computation of Minimum Financial Assurance Amount for Decommissioning Susquehanna Steam Electric Station Units 1and2 Base amount for BWR greater than 3,400 MWt = $135 million The Power Level of Unit 1 = 3,952 MWt and Unit 2 = 3,952 MWt Ownership Percentage Base Amount per Unit Escalation Factor Escalated Amount per Unit Total Escalated Amount (Unit 1 + Unit 2)
Unit 1 Unit2
$135,000,000
$135,000,000 90%
90%
$121,500,000
$121,500,000 4.939 4.939
$600,088,500
$600,088,500
$1,200,177,000