ML17087A256

Annual Decommissioning and Irradiated Fuel Management Financial Status Report for 2016

ML17087A256
Person / Time
Site:	Crystal River
Issue date:	03/28/2017
From:	Hobbs T Duke Energy Florida
To:	Document Control Desk, Office of Nuclear Reactor Regulation
References
3F0317-03
Download: ML17087A256 (9)

Text

Crystal River Nuclear Plant 15760 W. Power Line Street Crystal River, FL 34428 Docket 50-302 Docket 72-1035 Operating License No. DPR

-72 10 CFR 50.82 10 CFR 50.75 March 2 8 , 20 1 7 3F031 7-0 3 U.S. Nuclear Regulatory Commission Attn: Document Control Desk Washington, DC 20555

-0001

Subject:

Crystal River Unit 3

- Annual Decommissioning and Irradiated Fuel Management Financial Status Report for 201 6 Reference s: 1. NRC to CR-3 letter dated March 13, 2013, "Crystal River Unit 3 Nuclear Generating Plant Certification of Permanent Cessation of Operation and Permanent Removal of Fuel From the Reactor" (ADAMS Accession No. ML13058A380)

2. CR-3 to NRC letter dated December 2, 2013, "Crystal River Unit 3

- Post-Shutdown Decommissioning Activities Report" (ADAMS Accession No. ML13340A009)

3. NRC to CR-3 letter dated January 26, 201 5 , "Crystal River Unit 3 Nuclear Generating Plant

- Exemptions from the Requirements of 10 CFR Part 50, Sections 50.82(a)(8)(i)(A) and 50.75(h)(2)

" (ADAMS Accession No.

ML 1 4247 A 545) 4. NRC to CR-3 letter dated March 11, 2015, "Crystal River Unit 3 Nuclear Generating Plant Post

-Shutdown Decommissioning Activities Report" (ADAMS Accession No. ML14321A751)

5. NRC to CR-3 letter dated August 10, 2016, "Crystal River Unit 3 Nuclear Generating Plant

- Order Approving Transfer and Conforming Amendment

" (ADAMS Accession No. ML16173A01 9)

Dear Sir:

In accordance with 10 CFR 50.75(f)(1), 10 CFR 50.82(a)(8)(v), 10 CFR 50.82(a)(8)(vi), and 10 CFR 50.82(a)(8)(vii), Duke Energy Florida, LLC, (DEF) is submitting the annual status of decommissioning funding, status of funding for managing irradiated fuel, and the financial assurance status report for 2 01 6. In Reference 1, the NRC acknowledged Crystal River Unit 3 Nuclear Generating Plant (CR-3) certification of permanent cessation of power operation and permanent removal of fuel from the reactor vessel. In Reference 2, DEF submitted its Post

-Shutdown Decommissioning Activities Report (PSDAR) containing a site

-specific Decommissioning Cost Estimate (DCE) pursuant to 10 CFR 50.82(a)(4)(i) and 10 CFR 50.82(a)(8)(iii). Accordingly, a status of decommissioning funding pursuant to 10 CFR 50.75(f)(1), a financial assurance status report pursuant to 10 CFR 50.82(a)(8)(v) and 10 CFR 50.82(a)(8)(vi), and a report on the status of the funding for managing irradiated fuel pursuant to 10 CFR 50.82(a)(8)(vii) are required to be submitted by March 31 of each year.

U. S. Nuclear Regulatory Commission Page 2 of 3 3F031 7-0 3 In Reference 3, the NRC provided its approval of the CR

-3 exemption request to use the funds from the CR

-3 Decommissioning Trust Funds for Irradiated Fuel Management and Site Restoration Costs. The financial assurance demonstration performed in this submittal has been prepared consistent with that exemption request. In Reference 4, the NRC found that the PSDAR contained the necessary information required by 10 CFR 50.82(a)(4)(i) and was consistent with the guidance of Regulatory Guide 1.185.

In Reference 5, the NRC approved a license transfer of the 1.6994 percent combined ownership share in CR

-3 held by Seminole Electric Cooperative, Inc.

co-owner to DEF.

This leaves DEF as the sole owner of CR

-3. The attachments to this letter contain the information required by the above regulations for DEF

. The report contains the following required information:

(1) The amount of decommissioning funds estimated to be required pursuant to 10 CFR 50.75(b) and (c), (While DEF is identifying this amount because it is specified in 10 CFR 50.75(f)(1), it does not appear applicable to a plant that has permanently ceased operation, has submitted a site specific cost estimate, and is engaged in decommissioning).

(2) The amoun t of decommissioning funds accumulated to the end of the calendar year preceding the date of this report

, (3) A schedule of annual amounts remaining to be collected

, (4) The assumptions used regarding rates of escalation in decommissioning costs, rates of earnings on decommissioning funds, and rates of other factors used in funding projections

, (5) Any contracts upon which the licensee is relying pursuant to 10 CFR 50.75(e)(1)(v)

, (6) Any modifications occurring to a licensee's current method of providing financial assurance since the last submitted report

, (7) Any material changes to trust agreements or financial assurance contracts

, (8) The amount spent on decommissioning, both cumulative and over the previous calendar year

, (9) The remaining balance of any decommissioning funds

, (10) The amount provided by other financial assurance methods being relied upon

, (11) An estimate of the costs to complete decommissioning, reflecting any difference between actual and estimated costs for work performed during the year

, (12) The decommissioning criteria upon which the estimate is based

, (13) If the sum of the balance of any remaining decommissioning funds, plus earnings on such funds calculated are not greater than a 2 percent real rate of return, together with the amount provided by other financial assurance methods being relied upon, does not cover the estimated costs to complete the decommissioning, the financial assurance status report must include additional financial assurance to cover the estimated cost of completion

, (14) The amount of funds accumulated to cover the cost of managing the irradiated fuel

, (15) The projected cost of managing irradiated fuel until title to the fuel and po s session of the fuel is transferred to the Secretary of Energy

, and (16) If the funds accumulated do not cover the projected cost (of irradiated fuel), a plan to obtain additional funds to cover the cost.

U.S. Nuclear Regulatory Commission 3F0317-03 Page 3 of 3 The adjustment factors for labor rates and energy costs used in Item ( 1) for the calculation in 1 O CFR 50.75(c)(2) are determined using the December 2016 indices from the U.S. Department of Labor, Bureau of Labor Statistics.

The adjustment factor for the cost of low-level waste burial charges used in Item (1) for the calculation in 10 CFR 50.75(c)(2) is determined using NUREG-1307, Revision 16, "Report on Waste Burial Charges." There are no new regulatory commitments associated with this letter. If you have any questions regarding this submittal, please contact Mr. Mark Van Sicklen, Licensing Lead, Nuclear Regulatory Affairs, at (352) 563-4795. iJM-General Manager, Decommissioning TDH/mvs Attachments: -Duke Energy Florida, Crystal River Unit 3 Funding Status Report Attachment 2 -Crystal River Unit 3, Estimate of Costs to Complete Decommissioning and Financial Assurance Demonstration xc: NMSS Project Manager Regional Administrator, Region I

DUKE ENERGY FLORIDA, LLC DOCKET NUMBER 50

- 302 / LICENSE NUMBER DPR

- 72 ATTACHMENT 1

DUKE ENERGY FLORIDA

, CRYSTAL RIVER UNIT 3 FUNDING STATUS REPORT

, Page 1 of 2 Footnotes next page Crystal RiverItem #Unit 310 CFR 50.75(f)(1) - Status of decommissioning funding 11a. The amount of decommissioning funds estimated to be required pursuant to 10 CFR 50.75(b) and (c); 451,687,566

$ 1b. The amount of decommissioning funds estimated to be required for821,185,432

$ 1remaining License Termination costs.

2The amount of decommissioning funds accumulated to the end of the 722,083,733

$ 2,3calendar year preceding the date of the report; 3A schedule of the annual amounts remaining to be collected; None 4The assumptions used regarding rates of escalation in decommissioning inflation2.8%4costs, rates of earnings on decommissioning funds, and rates of other qualified rate of return5.10%4factors used in funding projections; 5Any contracts upon which the licensee is relying pursuant to Noneparagraph 10 CFR 50.75(e)(1)(v);

6Any modifications occurring to a licensee's current method of providing Nonefinancial assurance since the last submitted report; and 7Any material changes to trust agreements.None10 CFR 50.82(a)(8)(v) - Financial assurance status report 8(A) The amount spent on decommissioning, both cumulative and over the 23,650,676

$ 5 - Previous calendar yearprevious calendar year,67,655,152

$ 6 - Cumulative 9The remaining balance of any decommissioning funds, and722,083,733

$ 2,3 10The amount provided by other financial assurance methods being relied upon;None 11(B) An estimate of the costs to complete decommissioning, reflecting any See Attachment 2difference between actual and estimated costs for work performed during the year, and 12The decommissioning criteria upon which the estimate is based;Unrestricted Release 13(C) Any modifications occurring to a licensee's current method of providing financial assurance since the last submitted report; andNone 14(D) Any material changes to trust agreements or financial assurance contracts.None10 CFR 50.82(a)(8)(vi) 1510 CFR 50.82(a)(8)(vii) - Report on the status of funding for managing irradiated fuel 16(A) The amount of funds accumulated to cover the cost of managing the irradiated fuel; 17(B) The projected cost of managing irradiated fuel until title to the fuel See Attachment 2and possession of the fuel is transferred to the Secretary of Energy; and 18If the sum of the balance of any remaining decommissioning funds, plus earnings on such funds calculated at not greater than a 2 percent real rate of return, together with the amount provided by other financial assurance methods being relied upon, does not cover the estimated cost to complete the decommissioning, the financial assurance status report must include additional financial assurance to cover the estimated cost of completion.As demonstrated in Attachment 2, funds accumulated cover estimated cost of completion.As demonstrated in Attachment 2, funds accumulated cover estimated cost of completion.(C) If the funds accumulated do not cover the projected cost, a plan to obtain additional funds to cover the cost.As demonstrated in Attachment 2, funds accumulated cover projected cost of managing irradiated fuel, with the noted exception of DEF's portion of ISFSI capital construction costs as described in the update to Irradiated Fuel Management Program pursuant to 10CFR50.54(bb) (ADAMS Accession No.

ML13440A008).NRC Decommissioning Funding Status ReportReport Dated as of December 31, 2016Duke Energy FloridaCrystal River Unit 3100% Ownership , Page 2 of 2 Attachment 1 Footnotes: 6 Represents the cumulative amount actually disbursed from the fund as of December 31, 2016 for License Termination costs, not the cumulative costs incurred as of December 31, 2016. The Note applicable to Column A in Attachment 2 identifies the total amount of 2016 License Termination costs that have not been disbursed from the funds as of December 31, 2016.

1 Total amount of License Termination costs (Column A) in Attachment 2.

2 Amount is net of 2016 tax obligations.

3Represents (a) the full fund balance of DEF's qualified and non-qualified decommissioning funds, which, in accordance with the NRC exemption request approval (ADAMS Accession No. 14247A545), can also be used for Spent Fuel Management and Site Restoration costs, and (b) 100% of the funds held by the City of Tallahassee on behalf of DEF, which pursuant to NRC order (ADAMS Accession No. ML020670117) will only be used for NRC radiological decommissioning.

4 Represents values approved by the Florida Public Service Commission in Order No. PSC-14-0702-PAA-EI, issued December 22, 2014, which became effective and final pursuant to Order No. PSC-15-0067-CO-EI, issued on January 23, 2015.

5 Represents the amount actually disbursed from the fund in calendar year 2016 for License Termination costs, not the costs incurred in calendar year 2016. The Note applicable to Column A in Attachment 2 identifies the total amount of 2016 License Termination costs that have not been disbursed from the funds as of December 31, 2016.

DUKE ENERGY FLORIDA, LLC DOCKET NUMBER 50

- 302 / LICENSE NUMBER DPR

- 72 ATTACHMENT 2 CRYSTAL RIVER UNIT 3, ESTIMATE OF COSTS TO COMPLETE DECOMMISSIONING AND FINANCIAL ASSURANCE DEMONSTRATION

Attachment 2, Page 1 of 2 Footnotes next page Column AColumn BColumn CColumn DColumn EColumn FAnnual ExpensesAnnual expensesAnnual expensesTotal ExpensesProjected EarningsEnd-of-year Fund BalancesLicense Termination Cost (in thousands)Spent Fuel Cost (in thousands)Site Restoration Cost(in thousands)Total Cost(in thousands)Annual Earnings on Decommissioning Trust Fund at 2%(in thousands)All OwnersDecommissioning Trust FundYear-End Balance(in thousands) 2016722,084 2017100,16027,255 0127,41513,168 607,836 20187,02537,045 044,07011,716 575,482 20196,47124,415 030,88611,201 555,797 20205,6074,755 010,36211,012 556,447 20215,5914,742 010,33311,026 557,140 20225,5914,742 010,33311,039 557,846 20235,5914,742 010,33311,054 558,567 20245,6074,755 010,36211,068 559,272 20255,5914,742 010,33311,082 560,021 20265,5914,742 010,33311,097 560,785 20275,5914,742 010,33311,112 561,565 20285,6074,755 010,36211,128 562,330 20295,5914,742 010,33311,143 563,140 20305,5914,742 010,33311,159 563,967 20315,5914,742 010,33311,176 564,810 20325,6074,755 010,36211,193 565,640 20335,5914,742 010,33311,209 566,516 20345,5914,742 010,33311,227 567,410 20355,5917,588 013,17911,216 565,447 20365,6076,890 012,49711,184 564,135 20375,558 0 05,55811,227 569,803 20385,558 0 05,55811,340 575,585 20395,558 0 05,55811,456 581,483 20405,573 0 05,57311,574 587,484 20415,558 0 05,55811,694 593,620 20425,558 0 05,55811,817 599,878 20435,558 0 05,55811,942 606,262 20445,573 0 05,57312,070 612,758 20455,558 0 05,55812,200 619,399 20465,558 0 05,55812,332 626,173 20475,558 0 05,55812,468 633,083 20485,573 0 05,57312,606 640,116 20495,558 0 05,55812,747 647,304 20505,558 0 05,55812,890 654,636 20515,558 0 05,55813,037 662,115 20525,573 0 05,57313,187 669,728 20535,558 0 05,55813,339 677,509 20545,558 0 05,55813,495 685,445 20555,558 0 05,55813,653 693,540 20565,573 0 05,57313,815 701,782 20575,558 0 05,55813,980 710,204 20585,558 0 05,55814,148 718,794 20595,558 0 05,55814,320 727,556 20605,573 0 05,57314,495 736,478 20615,558 0 05,55814,674 745,594 20625,558 0 05,55814,856 754,892 20635,558 0 05,55815,042 764,375 20645,573 0 05,57315,232 774,034 20655,558 0 05,55815,425 783,901 20665,558 0 05,55815,622 793,965 206729,350 0 42129,77115,582 779,775 206866,698 01,36068,05814,915 726,632 2069121,761 01,680123,44113,298 616,489 207092,562 01,02893,59011,394 534,293 207177,902 0 70178,6039,900 465,590 207252,165 0 27352,4388,787 421,939 20735,009 028,11233,1218,108 396,926 2074 96 018,65418,7507,751 385,927 Total 1$821,185$174,371$52,230$1,047,787Crystal River Unit 3Attachment 2 - Financial Assurance DemonstrationDecember 31, 2016 Attachment 2, Page 2 of 2 Attachment 2 Footnotes:

Column A - Annual Expenses - License Termination Cost - Reflects the License Termination cost portion of the Decommissioning Cost Estimate (DCE) escalated to 2016 dollars at the Consumer Price Index escalation rate of 1.7% for 2014, 0.1% for 2015 and 1.3% for 2016. The 2017 costs represent the sum of 2013 through 2017 costs from the DCE, less $67,655,152 of License Termination costs disbursed from the funds through December 31, 2016. Outstanding License Termination costs of $10,614,556 were not reimbursed as of December 31, 2016 due to outstanding joint owner reimbursements and November and December 2016 reimbursements. Reimbursement of these outstanding costs is expected after December 31, 2016.Column B - Annual Expenses - Spent Fuel Management Cost - Reflects the Spent Fuel Management cost portion of the Decommissioning Cost Estimate (DCE) escalated to 2016 dollars at the Consumer Price Index escalation rate of 1.7% for 2014, 0.1% for 2015 and 1.3% for 2016. The 2017 costs represent the sum of 2013 through 2017 costs from the DCE, less $107,852,441 of Spent Fuel Management costs disbursed from the funds through December 31, 2016. Outstanding Spent Fuel Management costs of $8,459,278 were not reimbursed as of December 31, 2016 due to outstanding joint owner reimbursements and November and December 2016 reimbursements. Reimbursement of these outstanding costs is expected after December 31, 2016. Notwithstanding the acquisition in 2015 and 2016 by DEF of co-owner ownership interests, the 2016 through 2018 costs continue to include ISFSI capital construction costs for the ownership interests of all co-owners (8.2194%) as of the submittal date of the Update to Irradiated Fuel Management Program pursuant to 10 CFR 50.54(bb) (ADAMS Accession No. ML13340A008). DEF will continue to fund the ISFSI capital construction costs for its ownership interest (91.7806%) as of the submittal date of the Update to Irradiated Fuel Management Program pursuant to 10 CFR 50.54(bb) (ADAMS Accession No.

ML13340A008) in accordance therewith. Current projected ISFSI capital construction costs are now estimated to be $102M through 2018. Accordingly, these costs associated with the ownership interests of all co-owners (8.2194%) are included in the table above. Column C - Annual Expenses - Site Restoration Cost - Reflects the Site Restoration cost portion of the Decommissioning Cost Estimate (DCE) escalated to 2016 dollars at the Consumer Price Index escalation rate of 1.7% for 2014, 0.1% for 2015 and 1.3% for 2016. Site Restoration costs of $7,494,563 were incurred in 2013 through 2016, of which $7,357,059 has been reimbursed as of December 31, 2016. Reimbursement of the outstanding costs is expected after December 31, 2016. $2,139,772 of the reimbursed amount was related to Site Restoration costs contemplated in the DCE for the year 2074 and was therefore deducted from the 2074 costs in the table above.Column D - Annual Expenses - Total Cost - Reflects the sum of the License Termination, Spent Fuel Management and Site Restoration costs. Column E - Projected Earnings - Reflects earnings on funds remaining in the trusts. Pursuant to 10 CFR 50.82(a)(8)(vi), a 2% real rate of return is used in this financial analysis. The earnings are calculated on the previous year's end-of-year fund balance (Column F) less 50% of the given year's annual expenses.Column F - End-of-year Fund Balances - Reflects the end-of year fund balance of all funds after all projected earnings are added and projected expenditures are deducted. The 2016 end-of-year fund balance includes 100% of $6,891,614 in funds held by the City of Tallahassee on behalf of Duke Energy Florida, which pursuant to NRC order (ADAMS Accession No. ML020670117) will only be used for NRC radiological decommissioning. For the purposes of demonstrating financial assurance in accordance with 10 CFR 50.82(a)(8)(vi), the methodology and assumptions in this analysis are consistent with the March 28, 2014, Request for Exemption from 10 CFR 50.82(a)(8)(i)(A) and 10 CFR 50.75(h)(2) (ADAMS Accession No. ML14098A037),

which was approved by NRC on January 26, 2015 (ADAMS Accession No. ML14247A545).

1 Total may not add due to rounding.