ML17087A246

Decommissioning Funding Status Reports

ML17087A246
Person / Time
Site:	Monticello, Prairie Island
Issue date:	03/28/2017
From:	Murphy M Northern States Power Co, Xcel Energy
To:	Document Control Desk, Office of Nuclear Reactor Regulation
References
L-XE-17-004
Download: ML17087A246 (26)

Text

414 Nicollet Mall Minneapolis, MN 55401 800.895.4999 xcelenergy.com March 28, 2017 ATTN: Document Control Desk U.S. Nuclear Regulatory Commission Washington, DC 20555-0001 Prairie Island Nuclear Generating Plant, Units 1 and 2 Docket 50-282 and 50-306 Renewed Facility Operating License Nos.

DPR-42 and DPR-60 Decommissioning Funding Status Reports (l Xce/ Energy*

RESPONSIBLE BY NATURE L-XE-17-004 10 CFR 50. 75(f)(1)

Monticello Nuclear Generating Plant Docket 50-263 Renewed Facility Operating License No. DPR-22 Northern States Power Company, a Minnesota corporation (NSPM) d/b/a Xcel Energy, hereby submits the enclosed decommissioning funding status reports in accordance with 10 CFR 50.75(f)(1) for the above listed plants. The financial information presented is current as of December 31, 2016.

Summary of Commitments This letter makes no new commitments and no revisions to existing commitments.

!:!~S~f~

Director, Nuclear Licensing and Regulatory Services Northern States Power Company-Minnesota Enclosures (8) cc:

Administrator, Region Ill, USNRC Project Manager, Monticello, USNRC Project Manager, Prairie Island, USNRC Resident Inspector, Monticello, USNRC Resident Inspector, Prairie Island, USNRC

Page 1 of 1 ENCLOSURE 1 Prairie Island Nuclear Generating Plant, Unit 1 Docket No. 50-282 License No. DPR-42 Decommissioning Funding Status Report As provided in 10 CFR 50.75(f)(1), each power reactor licensee is required to report to the NRC on a calendar year basis beginning March 31, 1999, and every two years thereafter on the status of its decommissioning funding for each reactor or share of reactor it owns.

1.

The minimum decommissioning fund estimate, pursuant to 10 CFR 50.75(b) and (c), in 2016 dollars.

$390,933,044

2.

The amount accumulated at the end of the calendar year preceding the date of the report.

External Qualified

$358,639,700 (See Enclosure 4 for segmentation of Radiological Decommissioning, Spent Fuel Management, and Site Restoration Trust Funds Balances).

External Escrow

$0 Total

$358,639,700

3.

A schedule of the annual amounts remaining to be collected for radiological costs through rates from customers.

Annual Annuity Years to Collect

$486,428 16.8 yrs

4.

Assumptions used regarding escalation in decommissioning costs, rate of earnings on decommissioning funds and rates of other factors used in funding projections.

Plant Owner (% Ownership)

Rate of Earnings (Nominal Rate Of Return)

Escalation Factor (Inflation)

Real Rate of Return (Projected)

Xcel Energy (100%) - PINGP Unit 1

- During Operations (Radiological) 6.24%

4.36%

1.88%

Xcel Energy (100%) - PINGP Unit 1

- Post-Shutdown (Radiological) 5.35%

4.36%

0.99%

Basis for Allowance:

Xcel Energy files a triennial decommissioning study with the Minnesota Public Utilities Commission (MPUC) for approval. A portion of the study is dedicated to an analysis of inflation factors surrounding the various components necessary to perform the decommissioning function. Note: These rates apply to external funds only for radiological decommissioning. The rate of earnings and escalation factors were approved by the MPUC in the most recent triennial decommissioning study completed by the company, MPUC Docket No. E002/M-14-761, effective October 5, 2015. The projected real rate of return of 1.88% during operations and 0.99% post-shutdown would accumulate sufficient decommissioning funds by the current 2033 end of license date.

5.

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

None

6.

Any modifications to a licensee's method of providing financial assurance occurring since the last submitted report.

None

7.

Any material changes to trust agreements.

None

Page 1 of 1 ENCLOSURE 2 Prairie Island Nuclear Generating Plant, Unit 2 Docket 50-306 License DPR-60 Decommissioning Funding Status Report As provided in 10 CFR 50.75(f)(1), each power reactor licensee is required to report to the NRC on a calendar year basis beginning March 31, 1999, and every two years thereafter on the status of its decommissioning funding for each reactor or share of reactor it owns.

1.

The minimum decommissioning fund estimate, pursuant to 10 CFR 50.75(b) and (c), in 2016 dollars.

$390,933,044

2.

The amount accumulated at the end of the calendar year preceding the date of the report.

External Qualified

$395,626,640 (See Enclosure 4 for segmentation of Radiological Decommissioning, Spent Fuel Management, and Site Restoration Trust Funds Balances).

External Escrow

$0 Total

$395,626,640

3.

A schedule of the annual amounts remaining to be collected for radiological costs through rates on customers.

Annual Annuity Years to Collect

$1,535,107 17.8 yrs

4.

Assumptions used regarding escalation in decommissioning costs, rate of earnings on decommissioning funds and rates of other factors used in funding projections.

Plant Owner (% Ownership)

Rate of Earnings (Nominal Rate Of Return)

Escalation Factor (Inflation)

Real Rate of Return (Projected)

Xcel Energy (100%)- PINGP Unit 2

- During Operations (Radiological) 6.30%

4.36%

1.94%

Xcel Energy (100%)- PINGP Unit 2

- Post-Shutdown (Radiological) 5.23%

4.36%

0.87%

Basis for Allowance:

Xcel Energy files a triennial decommissioning study with the Minnesota Public Utilities Commission (MPUC) for approval. A portion of the study is dedicated to an analysis of inflation factors surrounding the various components necessary to perform the decommissioning function. Note: These rates apply to external funds only for radiological decommissioning. The rate of earnings and escalation factors were approved by the MPUC in the most recent triennial decommissioning study completed by the company, MPUC Docket No. E002/M-14-761, effective October 5, 2015. The projected real rate of return of 1.94% during operations and 0.87% post-shutdown would accumulate sufficient decommissioning funds by the current 2034 end of license date.

5.

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

None

6.

Any modifications to a licensee's method of providing financial assurance occurring since the last submitted report.

None

7.

Any material changes to trust agreements.

None

Page 1 of 1 ENCLOSURE 3 Monticello Nuclear Generating Plant Docket No. 50-263 License No. DPR-22 Decommissioning Funding Status Report As provided in 10 CFR 50.75(f)(1), each power reactor licensee is required to report to the NRC on a calendar year basis beginning March 31, 1999, and every two years thereafter on the status of its decommissioning funding for each reactor or share of reactor it owns.

1.

The minimum decommissioning fund estimate, pursuant to 10 CFR 50.75(b) and (c), in 2016 dollars.

$562,107,616

2.

The amount accumulated for Radiological Decommissioning at the end of the calendar year preceding the date of the report.

External Qualified

$498,602,413 (See Enclosure 4 for segmentation of Radiological Decommissioning, Spent Fuel Management, and Site Restoration Trust Funds Balances).

External Escrow

$0 Total

$498,602,413

3.

A schedule of the annual amounts remaining to be collected for radiological costs through rates from customers.

Annual Annuity Years to Collect

$6,030,008 13.75 yrs

4.

Assumptions used regarding escalation in decommissioning costs, rate of earnings on decommissioning funds and rates of other factors used in funding projections.

Plant Owner (% Ownership)

Rate of Earnings (Nominal Rate Of Return)

Escalation Factor (Inflation)

Real Rate of Return (Projected)

Xcel Energy (100%)- Monticello -

During Operations (Radiological) 6.20%

4.36%

1.84%

Xcel Energy (100%)- Monticello -

Post-Shutdown (Radiological) 5.51%

4.36%

1.15%

Basis for Allowance:

Xcel Energy files a triennial decommissioning study with the Minnesota Public Utilities Commission (MPUC) for approval. A portion of the study is dedicated to an analysis of inflation factors surrounding the various components necessary to perform the decommissioning function. Note: These rates apply to external funds only for radiological decommissioning. The rate of earnings and escalation factors were approved by the MPUC in the most recent triennial decommissioning study completed by the company, MPUC Docket No. E002/M-14-761, effective October 5, 2015. The projected real rate of return of 1.84% during operations and 1.15% post-shutdown would accumulate sufficient decommissioning funds by the current 2030 end of license date.

5.

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

None

6.

Any modifications to a licensee's method of providing financial assurance occurring since the last submitted report.

None

7.

Any material changes to trust agreements.

None

Page 1 of 2 ENCLOSURE 4 Prairie Island Nuclear Generating Plant (PINGP) Units 1 and 2 Dockets 50-282 and 50-306 Licenses Nos. DPR-42 and DPR-60 Monticello Nuclear Generating Plant (MNGP)

Docket 50-263 License No. DPR-22 Xcel Energy Breakdown of Annual Contributions and Trust Fund Balance The following table is the radiological decommissioning, spent fuel management, and site restoration segmentation of the trust fund balances for PINGP Units 1 and 2 and MNGP.

Since the last biennial funding status report, Xcel Energy has rebalanced the amount of funds allocated between the three cost components of decommissioning. This was done to properly balance funds against the new decommissioning cost study and to ensure proper funding for all three components. contains the split of the total fund balance in the cost components.

Trust Fund Beginning Balances Prairie Island Unit 1 2016 2017 Radiological Decommissioning 337,631,083 358,639,700 Spent Fuel Management 106,250,437 112,861,720 Site Restoration 21,282,473 22,606,745 Total 465,163,993 494,108,165 Prairie Island Unit 2 2016 2017 Radiological Decommissioning 367,409,850 395,626,640 Spent Fuel Management 122,843,067 132,277,319 Site Restoration 25,135,958 27,066,380 Total 515,388,875 554,970,339 Monticello 2016 2017 Radiological Decommissioning 456,778,564 498,602,413 Spent Fuel Management 263,416,150 287,535,228 Site Restoration 23,402,567 25,545,368 Total 743,597,281 811,683,009

Page 2 of 2 The following annual contributions table shows the approximate accrual segmentation for radiological decommissioning, spent fuel management, and site restoration for PINGP Units 1 and 2 and MNGP.

See Enclosure 5 for the calculation of annual contributions for radiological decommissioning. See for the calculation of annual contributions for spent fuel management. See Enclosure 7 for the calculation of annual contributions for site restoration.

Annual Contributions Prairie Island Unit 1 2016 2017 Radiological Decommissioning 486,428 486,428 Spent Fuel Management 0

0 Site Restoration 0

0 Total 486,428 486,428 Prairie Island Unit 2 2016 2017 Radiological Decommissioning 1,535,107 1,535,107 Spent Fuel Management 0

0 Site Restoration 0

0 Total 1,535,107 1,535,107 Monticello Unit 1 2016 2017 Radiological Decommissioning 6,030,008 6,030,008 Spent Fuel Management 12,011,286 12,011,286 Site Restoration 308,915 308,915 Total 18,350,209 18,350,209

ENCLOSURE 5 ANNUAL ACCRUAL

SUMMARY

- RADIOLOGICAL 4 Pages Follow

Levelized (beginning of year payment, mid year interest)

ANNUAL ACCRUAL

SUMMARY

2014-2015 2016+

Operational Operational Post-Shutdown Present Recovered 2016-2018 Remaining Earnings Earnings Earnings Value to Through Decommissioning Life (yrs)

Rate Rate Rate Decommission 12/31/2016 Accrual (7)

(8)

(9)

(9)

(6)

(12)

(13)

Monticello 13.75 5.35%

6.20%

5.51%

$1,213,177,556

$498,602,413 6,030,008 Prairie Island Unit 1 16.80 5.50%

6.24%

5.35%

958,156,562 358,639,700 486,428 Prairie Island Unit 2 17.80 5.53%

6.30%

5.23%

1,164,842,945 395,626,640 1,535,107 TOTAL DECOMMISSIONING ACCRUAL

$3,336,177,063

$1,252,868,754

$8,051,544 INPUT DATA Escalation Rate (Operation/Radiological) 4.36% (a)

Escalation Rate (ISFSI/Site Restoration) 3.36% (a)

Jurisdictional Factor 100.0000% (b)

IRS Tax Qualified Percent 100.00% (c)

External Percent 100.00% (d)

NOTES Input Data (a) = Inflation rate from current filing documentation (b) = 2014 Minnesota jurisdictional percent from 2013 electric rate case (c) = IRS qualifying percent based upon 2005 Energy Policy Act (d) = Recommended external funding Amount to Recover (1) = Current cost estimate by year from TLG Cost Study, 2014.

(2) = Jurisdictional Nominal Cost = (1) x (b)

(3) = Escalation factor based upon the applicable escalation rate for future value calculation (4) = Future Value of jurisdictional nominal cost (5) = Discount factor based upon the applicable earnings rate for present value calculation (6) = Present value to decommission at the start of 2015 Decommissioning Accrual (7) = Remaining life as of 1/1/15 based on E,G002/D-14-181 (8) = Fund earnings rate approved in 2011 Triennial Decommissioning Filing (9) = Fund earnings rates proposed in 2014 Triennial Decommissioning Filing (10) = Total Market Value Fund Balance as of June 30, 2014 (11) = Tax Effect Adjustment from Schedule G (12) = (10) - (11)

Levelized (beginning of year payment, mid year interest)

AMOUNT TO RECOVER Cost Jurisdictional Jurisdictional Present Estimate Cost in Escalation Cost in Discount Value to Nominal $s Nominal $s Factor Future $'s Factor Decommission (1)

(2)

(3)

(4)

(5)

(6)

Monticello 4.36%

Factors 2014 100.0000%

3.36%

5.51%

2030 2030

$19,421,458

$19,421,458 1.9795

$38,444,776 0.94778

$36,437,190 2031 81,247,304 81,247,304 2.0658 167,840,682 0.89828 150,767,927 2032 150,680,711 150,680,711 2.1558 324,837,478 0.85137 276,556,883 2033 114,879,541 114,879,541 2.2498 258,455,990 0.80691 208,550,723 2034 72,315,168 72,315,168 2.3479 169,788,784 0.76477 129,849,368 2035 55,823,109 55,823,109 2.4503 136,783,364 0.72483 99,144,686 2036 10,920,499 10,920,499 2.5571 27,924,808 0.68698 19,183,784 2037 10,890,661 10,890,661 2.6686 29,062,819 0.65110 18,922,801 2038 10,890,661 10,890,661 2.7850 30,330,492 0.61710 18,716,947 2039 10,890,661 10,890,661 2.9064 31,652,618 0.58488 18,512,983 2040 10,920,499 10,920,499 3.0331 33,122,965 0.55433 18,361,053 2041 10,890,661 10,890,661 3.1653 34,472,210 0.52538 18,111,010 2042 10,890,661 10,890,661 3.3033 35,975,122 0.49795 17,913,812 2043 10,890,661 10,890,661 3.4474 37,544,466 0.47194 17,718,735 2044 10,920,499 10,920,499 3.5977 39,288,679 0.44730 17,573,826 2045 29,586,137 29,586,137 3.7545 111,081,153 0.42394 47,091,744 2046 51,267,604 51,267,604 3.9182 200,876,726 0.40180 80,712,268 2047 7,088,949 7,088,949 4.0891 28,987,421 0.38082 11,038,990 2048 108,754 108,754 4.2674 464,096 0.36093 167,506 2049 0

0 4.4534 0

0.34208 0

2050 0

0 4.6476 0

0.32422 0

2051 0

0 4.8502 0

0.30728 0

2052 0

0 5.0617 0

0.29124 0

2053 0

0 5.2824 0

0.27603 0

2054 0

0 5.5127 0

0.26161 0

2055 0

0 3.8766 0

0.24795 0

2056 0

0 4.0069 0

0.23500 0

2057 0

0 4.1415 0

0.22273 0

2058 0

0 4.2807 0

0.21110 0

2059 0

0 4.4245 0

0.20007 0

2060 0

0 4.5731 0

0.18963 0

2061 0

0 4.7268 0

0.17972 0

2062 0

0 4.8856 0

0.17034 0

2063 0

0 5.0498 0

0.16144 0

2064 0

0 5.2195 0

0.15301 0

2065 0

0 5.3948 0

0.14502 0

2066 0

0 5.5761 0

0.13745 0

2067 0

0 5.7635 0

0.13027 0

2068 0

0 5.9571 0

0.12347 0

2069 0

0 6.1573 0

0.11702 0

2070 0

0 6.3641 0

0.11091 0

2071 0

0 6.5780 0

0.10512 0

2072 0

0 6.7990 0

0.09963 0

2073 0

0 7.0274 0

0.09442 0

2074 0

0 7.2636 0

0.08949 0

2075 0

0 7.5076 0

0.08482 0

2076 0

0 7.7599 0

0.08039 0

2077 0

0 8.0206 2

0.07619 0

2078 0

0 8.2901 2

0.07221 0

2079 0

0 8.5687 2

0.06844 0

2080 0

0 8.8566 3

0.06487 0

2081 0

0 9.1541 3

0.06148 0

2082 0

0 9.4617 3

0.05827 0

2083 0

0 9.7796 3

0.05523 0

2084 0

0 10.1082 3

0.05234 0

2085 0

0 10.4479 3

0.04961 0

2086 0

0 10.7989 3

0.04702 0

2087 0

0 11.1618 3

0.04456 0

2088 0

0 11.5368 3

0.04224 0

2089 0

0 11.9244 3

0.04003 0

2090 9,602,119 9,602,119 12.3251 118,347,080 0.03794 4,490,088 2091 7,324,200 7,324,200 12.7392 93,304,445 0.03596 3,355,228

$697,450,523

$697,450,523

$1,948,586,209

$1,213,177,556

Levelized (beginning of year payment, mid year interest)

AMOUNT TO RECOVER Cost Jurisdictional Jurisdictional Present Estimate Cost in Escalation Cost in Discount Value to Nominal $s Nominal $s Factor Future $'s Factor Decommission (1)

(2)

(3)

(4)

(5)

(6)

Prairie Island Unit 1 4.36%

Factors 2014 100.0000%

3.36%

5.35%

2033 2033

$25,245,893

$25,245,893 2.2498

$56,798,210 0.94922

$53,913,997 2034 77,617,361 77,617,361 2.3479 182,237,801 0.90101 164,198,081 2035 115,513,707 115,513,707 2.4503 283,043,237 0.85526 242,075,559 2036 91,518,687 91,518,687 2.5571 234,022,435 0.81182 189,984,093 2037 47,443,756 47,443,756 2.6686 126,608,409 0.77060 97,564,440 2038 4,921,672 4,921,672 2.7850 13,706,858 0.73146 10,026,018 2039 4,921,672 4,921,672 2.9064 14,304,349 0.69432 9,931,796 2040 4,935,157 4,935,157 3.0331 14,968,823 0.65906 9,865,353 2041 4,921,672 4,921,672 3.1653 15,578,570 0.62559 9,745,798 2042 4,921,672 4,921,672 3.3033 16,257,761 0.59382 9,654,183 2043 4,921,672 4,921,672 3.4474 16,966,974 0.56366 9,563,604 2044 4,935,157 4,935,157 3.5977 17,755,213 0.53504 9,499,749 2045 4,921,672 4,921,672 3.7545 18,478,419 0.50787 9,384,635 2046 4,921,672 4,921,672 3.9182 19,284,097 0.48208 9,296,478 2047 4,921,672 4,921,672 4.0891 20,125,211 0.45760 9,209,297 2048 4,935,157 4,935,157 4.2674 21,060,287 0.43436 9,147,746 2049 10,851,624 10,851,624 4.4534 48,326,623 0.41230 19,925,067 2050 32,935,330 32,935,330 4.6476 153,070,240 0.39136 59,905,569 2051 8,553,252 8,553,252 4.8502 41,484,985 0.37149 15,411,257 2052 96,310 96,310 5.0617 487,492 0.35262 171,899 2053 45,260 45,260 5.2824 239,084 0.33471 80,024 2054 0

0 3.7506 0

0.31772 0

2055 0

0 3.8766 0

0.30158 0

2056 0

0 4.0069 0

0.28627 0

2057 0

0 4.1415 0

0.27173 0

2058 0

0 4.2807 0

0.25793 0

2059 0

0 4.4245 0

0.24483 0

2060 0

0 4.5731 0

0.23240 0

2061 0

0 4.7268 0

0.22060 0

2062 0

0 4.8856 0

0.20939 0

2063 0

0 5.0498 0

0.19876 0

2064 0

0 5.2195 0

0.18867 0

2065 0

0 5.3948 0

0.17909 0

2066 0

0 5.5761 0

0.16999 0

2067 0

0 5.7635 0

0.16136 0

2068 0

0 5.9571 0

0.15316 0

2069 0

0 6.1573 0

0.14539 0

2070 0

0 6.3641 0

0.13800 0

2071 0

0 6.5780 0

0.13099 0

2072 0

0 6.7990 0

0.12434 0

2073 0

0 7.0274 0

0.11803 0

2074 0

0 7.2636 0

0.11203 0

2075 0

0 7.5076 0

0.10634 0

2076 0

0 7.7599 0

0.10094 0

2077 11,050,246 11,050,246 8.0206 88,629,603 0.09582 8,492,489 2078 1,471,425 1,471,425 8.2901 12,198,257 0.09095 1,109,432

$476,521,702

$476,521,702

$1,415,632,938

$958,156,562

Levelized (beginning of year payment, mid year interest)

AMOUNT TO RECOVER Cost Jurisdictional Jurisdictional Present Estimate Cost in Escalation Cost in Discount Value to Nominal $s Nominal $s Factor Future $'s Factor Decommission (1)

(2)

(3)

(4)

(5)

(6)

Prairie Island Unit 2 4.36%

Factors 2014 100.0000%

3.36%

5.23%

2034 2034

$9,569,898

$9,569,898 2.3479

$22,469,162 0.95030

$21,352,445 2035 60,329,258 60,329,258 2.4503 147,824,780 0.90307 133,496,124 2036 109,834,268 109,834,268 2.5571 280,857,207 0.85819 241,028,846 2037 107,666,243 107,666,243 2.6686 287,318,136 0.81553 234,316,559 2038 91,781,503 91,781,503 2.7850 255,611,487 0.77500 198,098,902 2039 15,058,917 15,058,917 2.9064 43,767,237 0.73648 32,233,695 2040 9,199,725 9,199,725 3.0331 27,903,686 0.69988 19,529,232 2041 9,174,589 9,174,589 3.1653 29,040,327 0.66509 19,314,431 2042 9,174,589 9,174,589 3.3033 30,306,420 0.63204 19,154,870 2043 9,174,589 9,174,589 3.4474 31,628,479 0.60063 18,997,013 2044 9,199,725 9,199,725 3.5977 33,097,851 0.57077 18,891,260 2045 9,174,589 9,174,589 3.7545 34,445,995 0.54241 18,683,852 2046 9,174,589 9,174,589 3.9182 35,947,875 0.51545 18,529,332 2047 9,174,589 9,174,589 4.0891 37,515,812 0.48983 18,376,370 2048 9,199,725 9,199,725 4.2674 39,258,906 0.46549 18,274,628 2049 15,195,163 15,195,163 4.4534 67,670,140 0.44235 29,933,886 2050 38,137,305 38,137,305 4.6476 177,246,938 0.42037 74,509,296 2051 10,590,656 10,590,656 4.8502 51,366,801 0.39947 20,519,496 2052 41,183 41,183 5.0617 208,456 0.37962 79,134 2053 19,354 19,354 5.2824 102,234 0.36075 36,881 2054 0

3.7506 0.34282 0

2055 0

3.8766 0.32578 0

2056 0

4.0069 0.30959 0

2057 0

4.1415 0.29421 0

2058 0

4.2807 0.27958 0

2059 0

4.4245 0.26569 0

2060 0

4.5731 0.25248 0

2061 0

4.7268 0.23993 0

2062 0

4.8856 0.22801 0

2063 0

5.0498 0.21668 0

2064 0

5.2195 0.20591 0

2065 0

5.3948 0.19567 0

2066 0

5.5761 0.18595 0

2067 0

5.7635 0.17671 0

2068 0

5.9571 0.16792 0

2069 0

6.1573 0.15958 0

2070 0

6.3641 0.15165 0

2071 0

6.5780 0.14411 0

2072 0

6.7990 0.13695 0

2073 0

7.0274 0.13014 0

2074 0

7.2636 0.12367 0

2075 0

7.5076 0.11753 0

2076 0

7.7599 0.11169 0

2077 9,698,476 9,698,476 8.0206 77,787,597 0.10614 8,256,376 2078 1,471,425 1,471,425 8.2901 12,198,257 0.10086 1,230,316

$552,040,358

$552,040,358

$1,723,573,783

$1,164,842,945

$1,726,012,583

$1,726,012,583

$5,087,792,930

$3,336,177,063

ENCLOSURE 6 ANNUAL ACCRUAL

SUMMARY

- SPENT FUEL MANAGEMENT 4 Pages Follow

Levelized (beginning of year payment, mid year interest)

ANNUAL ACCRUAL

SUMMARY

2014-2015 2016+

Operational Operational Post-Shutdown Present Recovered 2016-2018 Remaining Earnings Earnings Earnings Value to Through Decommissioning Life (yrs)

Rate Rate Rate Decommission 12/31/2016 Accrual (7)

(8)

(9)

(9)

(6)

(12)

(13)

Monticello 13.75 5.35%

6.20%

5.51%

$699,618,123

$287,535,228 12,011,286 Prairie Island Unit 1 16.80 5.50%

6.24%

5.35%

418,287,633 112,861,720 0

Prairie Island Unit 2 17.80 5.53%

6.30%

5.23%

536,519,944 132,277,319 0

TOTAL DECOMMISSIONING ACCRUAL

$1,654,425,700

$532,674,267

$12,011,286 INPUT DATA Escalation Rate (Operation/Radiological) 4.36% (a)

Escalation Rate (ISFSI/Site Restoration) 3.36% (a)

Jurisdictional Factor 100.0000% (b)

IRS Tax Qualified Percent 100.00% (c)

External Percent 100.00% (d)

NOTES Input Data (a) = Inflation rate from current filing documentation (b) = 2014 Minnesota jurisdictional percent from 2013 electric rate case (c) = IRS qualifying percent based upon 2005 Energy Policy Act (d) = Recommended external funding Amount to Recover (1) = Current cost estimate by year from TLG Cost Study, 2014.

(2) = Jurisdictional Nominal Cost = (1) x (b)

(3) = Escalation factor based upon the applicable escalation rate for future value calculation (4) = Future Value of jurisdictional nominal cost (5) = Discount factor based upon the applicable earnings rate for present value calculation (6) = Present value to decommission at the start of 2015 Decommissioning Accrual (7) = Remaining life as of 1/1/15 based on E,G002/D-14-181 (8) = Fund earnings rate approved in 2011 Triennial Decommissioning Filing (9) = Fund earnings rates proposed in 2014 Triennial Decommissioning Filing (10) = Total Market Value Fund Balance as of June 30, 2014 (11) = Tax Effect Adjustment from Schedule G (12) = (10) - (11)

Levelized (beginning of year payment, mid year interest)

AMOUNT TO RECOVER Cost Jurisdictional Jurisdictional Present Estimate Cost in Escalation Cost in Discount Value to Nominal $s Nominal $s Factor Future $'s Factor Decommission (1)

(2)

(3)

(4)

(5)

(6)

Monticello 4.36%

Factors 2014 100.0000%

3.36%

5.51%

2030 2030

$10,567,348

$10,567,348 1.9795

$20,918,066 0.94778

$19,825,725 2031 24,394,724 24,394,724 2.0658 50,394,621 0.89828 45,268,480 2032 4,030,061 4,030,061 2.1558 8,688,005 0.85137 7,396,707 2033 11,272,002 11,272,002 2.2498 25,359,751 0.80691 20,463,037 2034 18,842,511 18,842,511 2.3479 44,240,332 0.76477 33,833,678 2035 26,231,307 26,231,307 2.4503 64,274,572 0.72483 46,588,138 2036 8,706,796 8,706,796 2.5571 22,264,147 0.68698 15,295,024 2037 8,683,174 8,683,174 2.6686 23,171,919 0.65110 15,087,236 2038 8,683,174 8,683,174 2.7850 24,182,640 0.61710 14,923,107 2039 8,683,174 8,683,174 2.9064 25,236,777 0.58488 14,760,486 2040 8,706,796 8,706,796 3.0331 26,408,582 0.55433 14,639,069 2041 8,683,174 8,683,174 3.1653 27,484,851 0.52538 14,439,991 2042 8,683,174 8,683,174 3.3033 28,683,129 0.49795 14,282,764 2043 8,683,174 8,683,174 3.4474 29,934,375 0.47194 14,127,229 2044 8,706,796 8,706,796 3.5977 31,324,438 0.44730 14,011,421 2045 40,014,158 40,014,158 3.7545 150,233,158 0.42394 63,689,845 2046 9,061,852 9,061,852 3.9182 35,506,148 0.40180 14,266,370 2047 5,513,294 5,513,294 4.0891 22,544,412 0.38082 8,585,363 2048 6,850,935 6,850,935 4.2674 29,235,678 0.36093 10,552,033 2049 5,989,212 5,989,212 4.4534 26,672,357 0.34208 9,124,080 2050 14,680,018 14,680,018 4.6476 68,226,850 0.32422 22,120,509 2051 19,430,500 19,430,500 4.8502 94,241,813 0.30728 28,958,624 2052 11,529,270 11,529,270 5.0617 58,357,705 0.29124 16,996,098 2053 17,847,006 17,847,006 5.2824 94,275,025 0.27603 26,022,735 2054 22,597,489 22,597,489 5.5127 124,573,177 0.26161 32,589,589 2055 5,927,836 5,927,836 3.8766 22,979,850 0.24795 5,697,854 2056 5,944,077 5,944,077 4.0069 23,817,322 0.23500 5,597,071 2057 5,927,836 5,927,836 4.1415 24,550,134 0.22273 5,468,051 2058 5,927,836 5,927,836 4.2807 25,375,289 0.21110 5,356,723 2059 5,927,836 5,927,836 4.4245 26,227,712 0.20007 5,247,378 2060 5,944,077 5,944,077 4.5731 27,182,858 0.18963 5,154,685 2061 5,927,836 5,927,836 4.7268 28,019,697 0.17972 5,035,700 2062 5,927,836 5,927,836 4.8856 28,961,037 0.17034 4,933,223 2063 5,927,836 5,927,836 5.0498 29,934,388 0.16144 4,832,608 2064 5,944,077 5,944,077 5.2195 31,025,110 0.15301 4,747,152 2065 5,927,836 5,927,836 5.3948 31,979,491 0.14502 4,637,666 2066 5,927,836 5,927,836 5.5761 33,054,208 0.13745 4,543,301 2067 5,927,836 5,927,836 5.7635 34,165,085 0.13027 4,450,686 2068 5,944,077 5,944,077 5.9571 35,409,461 0.12347 4,372,006 2069 5,927,836 5,927,836 6.1573 36,499,467 0.11702 4,271,168 2070 5,927,836 5,927,836 6.3641 37,725,343 0.11091 4,184,118 2071 5,927,836 5,927,836 6.5780 38,993,307 0.10512 4,098,976 2072 5,944,077 5,944,077 6.7990 40,413,779 0.09963 4,026,425 2073 5,927,836 5,927,836 7.0274 41,657,277 0.09442 3,933,280 2074 5,927,836 5,927,836 7.2636 43,057,432 0.08949 3,853,210 2075 5,927,836 5,927,836 7.5076 44,503,824 0.08482 3,774,814 2076 5,944,077 5,944,077 7.7599 46,125,443 0.08039 3,708,024 2077 6,866,280 6,866,280 8.0206 55,071,685 0.07619 4,195,912 2078 8,212,366 8,212,366 8.2901 68,081,339 0.07221 4,916,153 2079 7,876,027 7,876,027 8.5687 67,487,316 0.06844 4,618,832 2080 7,892,998 7,892,998 8.8566 69,905,127 0.06487 4,534,746 2081 7,876,027 7,876,027 9.1541 72,097,942 0.06148 4,432,581 2082 8,212,366 8,212,366 9.4617 77,702,947 0.05827 4,527,751 2083 7,876,027 7,876,027 9.7796 77,024,397 0.05523 4,254,057 2084 7,892,998 7,892,998 10.1082 79,784,004 0.05234 4,175,895 2085 7,876,027 7,876,027 10.4479 82,287,946 0.04961 4,082,305 2086 8,212,366 8,212,366 10.7989 88,684,524 0.04702 4,169,946 2087 7,876,027 7,876,027 11.1618 87,910,642 0.04456 3,917,298 2088 10,348,028 10,348,028 11.5368 119,383,129 0.04224 5,042,743 2089 7,876,027 7,876,027 11.9244 93,916,900 0.04003 3,759,494 2090 6,867,010 6,867,010 12.3251 84,636,586 0.03794 3,211,112 2091 17,112 17,112 12.7392 217,990 0.03596 7,839

$569,358,652

$569,358,652

$3,012,282,516

$699,618,123

Levelized (beginning of year payment, mid year interest)

AMOUNT TO RECOVER Cost Jurisdictional Jurisdictional Present Estimate Cost in Escalation Cost in Discount Value to Nominal $s Nominal $s Factor Future $'s Factor Decommission (1)

(2)

(3)

(4)

(5)

(6)

Prairie Island Unit 1 4.36%

Factors 2014 100.0000%

3.36%

5.35%

2033 2033

$850,895

$850,895 2.2498

$1,914,343 0.94922

$1,817,132 2034 3,925,760 3,925,760 2.3479 9,217,292 0.90101 8,304,873 2035 16,628,759 16,628,759 2.4503 40,745,449 0.85526 34,847,953 2036 13,332,026 13,332,026 2.5571 34,091,323 0.81182 27,676,018 2037 12,450,122 12,450,122 2.6686 33,224,395 0.77060 25,602,719 2038 2,238,460 2,238,460 2.7850 6,234,112 0.73146 4,560,003 2039 8,891,096 8,891,096 2.9064 25,841,081 0.69432 17,941,980 2040 2,244,593 2,244,593 3.0331 6,808,075 0.65906 4,486,930 2041 15,543,732 15,543,732 3.1653 49,200,574 0.62559 30,779,387 2042 2,238,460 2,238,460 3.3033 7,394,306 0.59382 4,390,887 2043 15,543,732 15,543,732 3.4474 53,585,461 0.56366 30,203,981 2044 2,244,593 2,244,593 3.5977 8,075,372 0.53504 4,320,647 2045 15,543,732 15,543,732 3.7545 58,358,941 0.50787 29,638,755 2046 2,238,460 2,238,460 3.9182 8,770,735 0.48208 4,228,196 2047 15,543,732 15,543,732 4.0891 63,559,873 0.45760 29,084,998 2048 2,244,593 2,244,593 4.2674 9,578,576 0.43436 4,160,550 2049 22,042,532 22,042,532 4.4534 98,164,214 0.41230 40,473,105 2050 935,936 935,936 4.6476 4,349,855 0.39136 1,702,359 2051 2,304,713 2,304,713 4.8502 11,178,318 0.37149 4,152,633 2052 3,418,926 3,418,926 5.0617 17,305,579 0.35262 6,102,293 2053 3,825,877 3,825,877 5.2824 20,209,813 0.33471 6,764,427 2054 4,365,043 4,365,043 3.7506 16,371,530 0.31772 5,201,562 2055 4,028,704 4,028,704 3.8766 15,617,673 0.30158 4,709,978 2056 4,542,868 4,542,868 4.0069 18,202,817 0.28627 5,210,920 2057 4,028,704 4,028,704 4.1415 16,684,877 0.27173 4,533,782 2058 3,860,534 3,860,534 4.2807 16,525,789 0.25793 4,262,497 2059 4,196,873 4,196,873 4.4245 18,569,066 0.24483 4,546,264 2060 4,038,359 4,038,359 4.5731 18,467,820 0.23240 4,291,921 2061 4,196,873 4,196,873 4.7268 19,837,781 0.22060 4,376,214 2062 4,196,873 4,196,873 4.8856 20,504,244 0.20939 4,293,384 2063 4,196,873 4,196,873 5.0498 21,193,371 0.19876 4,212,394 2064 4,038,359 4,038,359 5.2195 21,078,215 0.18867 3,976,827 2065 4,196,873 4,196,873 5.3948 22,641,292 0.17909 4,054,829 2066 4,196,873 4,196,873 5.5761 23,402,185 0.16999 3,978,137 2067 4,028,704 4,028,704 5.7635 23,219,434 0.16136 3,746,688 2068 4,206,529 4,206,529 5.9571 25,058,712 0.15316 3,837,992 2069 4,196,873 4,196,873 6.1573 25,841,408 0.14539 3,757,082 2070 4,028,704 4,028,704 6.3641 25,639,074 0.13800 3,538,192 2071 4,196,873 4,196,873 6.5780 27,607,033 0.13099 3,616,245 2072 4,206,529 4,206,529 6.7990 28,600,188 0.12434 3,556,147 2073 4,028,704 4,028,704 7.0274 28,311,313 0.11803 3,341,584 2074 4,196,873 4,196,873 7.2636 30,484,409 0.11203 3,415,168 2075 5,424,388 5,424,388 7.5076 40,724,137 0.10634 4,330,605 2076 4,038,359 4,038,359 7.7599 31,337,263 0.10094 3,163,183 2077 4,028,720 4,028,720 8.0206 32,312,749 0.09582 3,096,208 2078 0

0 8.2901 0

0.09095 0

$264,895,795

$264,895,795

$1,136,040,066

$418,287,633

Levelized (beginning of year payment, mid year interest)

AMOUNT TO RECOVER Cost Jurisdictional Jurisdictional Present Estimate Cost in Escalation Cost in Discount Value to Nominal $s Nominal $s Factor Future $'s Factor Decommission (1)

(2)

(3)

(4)

(5)

(6)

Prairie Island Unit 2 4.36%

Factors 2014 100.0000%

3.36%

5.23%

2034 2034

$3,438,926

$3,438,926 2.3479

$8,074,255 0.95030

$7,672,965 2035 18,303,297 18,303,297 2.4503 44,848,570 0.90307 40,501,398 2036 10,762,920 10,762,920 2.5571 27,521,863 0.85819 23,618,988 2037 8,261,345 8,261,345 2.6686 22,046,225 0.81553 17,979,358 2038 6,026,510 6,026,510 2.7850 16,783,831 0.77500 13,007,469 2039 12,670,326 12,670,326 2.9064 36,825,035 0.73648 27,120,902 2040 6,545,128 6,545,128 3.0331 19,852,028 0.69988 13,894,038 2041 19,832,517 19,832,517 3.1653 62,775,866 0.66509 41,751,600 2042 6,527,245 6,527,245 3.3033 21,561,450 0.63204 13,627,699 2043 19,832,517 19,832,517 3.4474 68,370,619 0.60063 41,065,445 2044 6,545,128 6,545,128 3.5977 23,547,408 0.57077 13,440,154 2045 19,832,517 19,832,517 3.7545 74,461,185 0.54241 40,388,491 2046 6,527,245 6,527,245 3.9182 25,575,053 0.51545 13,182,661 2047 19,832,517 19,832,517 4.0891 81,097,145 0.48983 39,723,814 2048 6,545,128 6,545,128 4.2674 27,930,680 0.46549 13,001,452 2049 25,579,311 25,579,311 4.4534 113,914,905 0.44235 50,390,258 2050 935,936 935,936 4.6476 4,349,855 0.42037 1,828,549 2051 2,304,713 2,304,713 4.8502 11,178,318 0.39947 4,465,403 2052 3,418,926 3,418,926 5.0617 17,305,579 0.37962 6,569,544 2053 3,825,877 3,825,877 5.2824 20,209,813 0.36075 7,290,690 2054 4,365,043 4,365,043 3.7506 16,371,530 0.34282 5,612,488 2055 4,028,704 4,028,704 3.8766 15,617,673 0.32578 5,087,926 2056 4,542,868 4,542,868 4.0069 18,202,817 0.30959 5,635,410 2057 4,028,704 4,028,704 4.1415 16,684,877 0.29421 4,908,858 2058 3,860,534 3,860,534 4.2807 16,525,789 0.27958 4,620,280 2059 4,196,873 4,196,873 4.4245 18,569,066 0.26569 4,933,615 2060 4,038,359 4,038,359 4.5731 18,467,820 0.25248 4,662,755 2061 4,196,873 4,196,873 4.7268 19,837,781 0.23993 4,759,679 2062 4,196,873 4,196,873 4.8856 20,504,244 0.22801 4,675,173 2063 4,196,873 4,196,873 5.0498 21,193,371 0.21668 4,592,180 2064 4,038,359 4,038,359 5.2195 21,078,215 0.20591 4,340,215 2065 4,196,873 4,196,873 5.3948 22,641,292 0.19567 4,430,222 2066 4,196,873 4,196,873 5.5761 23,402,185 0.18595 4,351,636 2067 4,028,704 4,028,704 5.7635 23,219,434 0.17671 4,103,106 2068 4,206,529 4,206,529 5.9571 25,058,712 0.16792 4,207,859 2069 4,196,873 4,196,873 6.1573 25,841,408 0.15958 4,123,772 2070 4,028,704 4,028,704 6.3641 25,639,074 0.15165 3,888,166 2071 4,196,873 4,196,873 6.5780 27,607,033 0.14411 3,978,449 2072 4,206,529 4,206,529 6.7990 28,600,188 0.13695 3,916,796 2073 4,028,704 4,028,704 7.0274 28,311,313 0.13014 3,684,434 2074 4,196,873 4,196,873 7.2636 30,484,409 0.12367 3,770,007 2075 5,424,388 5,424,388 7.5076 40,724,137 0.11753 4,786,308 2076 4,038,359 4,038,359 7.7599 31,337,263 0.11169 3,500,059 2077 4,028,720 4,028,720 8.0206 32,312,749 0.10614 3,429,675 2078 0

8.2901 0.10086 0

$308,213,097

$308,213,097

$1,296,462,060

$536,519,944

$1,142,467,544

$1,142,467,544

$5,444,784,641

$1,654,425,700

ENCLOSURE 7 ANNUAL ACCRUAL

SUMMARY

- SITE RESTORATION 4 Pages Follow

Levelized (beginning of year payment, mid year interest)

ANNUAL ACCRUAL

SUMMARY

2014-2015 2016+

Operational Operational Post-Shutdown Present Recovered 2016-2018 Remaining Earnings Earnings Earnings Value to Through Decommissioning Life (yrs)

Rate Rate Rate Decommission 12/31/2016 Accrual (7)

(8)

(9)

(9)

(6)

(12)

(13)

Monticello 13.75 5.35%

6.20%

5.51%

$62,155,871

$25,545,368 308,915 Prairie Island Unit 1 16.80 5.50%

6.24%

5.35%

83,785,024 22,606,745 0

Prairie Island Unit 2 17.80 5.53%

6.30%

5.23%

109,781,880 27,066,380 0

TOTAL DECOMMISSIONING ACCRUAL

$255,722,774

$75,218,493

$308,915 INPUT DATA Escalation Rate (Operation/Radiological) 4.36% (a)

Escalation Rate (ISFSI/Site Restoration) 3.36% (a)

Jurisdictional Factor 100.0000% (b)

IRS Tax Qualified Percent 100.00% (c)

External Percent 100.00% (d)

NOTES Input Data (a) = Inflation rate from current filing documentation (b) = 2014 Minnesota jurisdictional percent from 2013 electric rate case (c) = IRS qualifying percent based upon 2005 Energy Policy Act (d) = Recommended external funding Amount to Recover (1) = Current cost estimate by year from TLG Cost Study, 2014.

(2) = Jurisdictional Nominal Cost = (1) x (b)

(3) = Escalation factor based upon the applicable escalation rate for future value calculation (4) = Future Value of jurisdictional nominal cost (5) = Discount factor based upon the applicable earnings rate for present value calculation (6) = Present value to decommission at the start of 2015 Decommissioning Accrual (7) = Remaining life as of 1/1/15 based on E,G002/D-14-181 (8) = Fund earnings rate approved in 2011 Triennial Decommissioning Filing (9) = Fund earnings rates proposed in 2014 Triennial Decommissioning Filing (10) = Total Market Value Fund Balance as of June 30, 2014 (11) = Tax Effect Adjustment from Schedule G (12) = (10) - (11)

Levelized (beginning of year payment, mid year interest)

AMOUNT TO RECOVER Cost Jurisdictional Jurisdictional Present Estimate Cost in Escalation Cost in Discount Value to Nominal $s Nominal $s Factor Future $'s Factor Decommission (1)

(2)

(3)

(4)

(5)

(6)

Monticello 4.36%

Factors 2014 100.0000%

3.36%

5.51%

2030 2030

$152,968

$152,968 1.9795

$302,801 0.94778

$286,988 2031 589,490 589,490 2.0658 1,217,768 0.89828 1,093,897 2032 411,835 411,835 2.1558 887,834 0.85137 755,875 2033 163,437 163,437 2.2498 367,700 0.80691 296,701 2034 4,238 4,238 2.3479 9,950 0.76477 7,609 2035 3,100 3,100 2.4503 7,596 0.72483 5,506 2036 0

0 2.5571 0

0.68698 0

2037 0

0 2.6686 0

0.65110 0

2038 0

0 2.7850 0

0.61710 0

2039 0

0 2.9064 0

0.58488 0

2040 0

0 3.0331 0

0.55433 0

2041 0

0 3.1653 0

0.52538 0

2042 0

0 3.3033 0

0.49795 0

2043 0

0 3.4474 0

0.47194 0

2044 0

0 3.5977 0

0.44730 0

2045 0

0 3.7545 0

0.42394 0

2046 0

0 3.9182 0

0.40180 0

2047 17,736,597 17,736,597 4.0891 72,526,720 0.38082 27,619,625 2048 20,321,932 20,321,932 4.2674 86,721,812 0.36093 31,300,503 2049 0

0 4.4534 0

0.34208 0

2050 0

0 4.6476 0

0.32422 0

2051 0

0 4.8502 0

0.30728 0

2052 0

0 5.0617 0

0.29124 0

2053 0

0 5.2824 0

0.27603 0

2054 0

0 5.5127 0

0.26161 0

2055 0

0 3.8766 0

0.24795 0

2056 0

0 4.0069 0

0.23500 0

2057 0

0 4.1415 0

0.22273 0

2058 0

0 4.2807 0

0.21110 0

2059 0

0 4.4245 0

0.20007 0

2060 0

0 4.5731 0

0.18963 0

2061 0

0 4.7268 0

0.17972 0

2062 0

0 4.8856 0

0.17034 0

2063 0

0 5.0498 0

0.16144 0

2064 0

0 5.2195 0

0.15301 0

2065 0

0 5.3948 0

0.14502 0

2066 0

0 5.5761 0

0.13745 0

2067 0

0 5.7635 0

0.13027 0

2068 0

0 5.9571 0

0.12347 0

2069 0

0 6.1573 0

0.11702 0

2070 0

0 6.3641 0

0.11091 0

2071 0

0 6.5780 0

0.10512 0

2072 0

0 6.7990 0

0.09963 0

2073 0

0 7.0274 0

0.09442 0

2074 0

0 7.2636 0

0.08949 0

2075 0

0 7.5076 0

0.08482 0

2076 0

0 7.7599 0

0.08039 0

2077 0

0 8.0206 0

0.07619 0

2078 0

0 8.2901 0

0.07221 0

2079 0

0 8.5687 0

0.06844 0

2080 0

0 8.8566 0

0.06487 0

2081 0

0 9.1541 0

0.06148 0

2082 0

0 9.4617 0

0.05827 0

2083 0

0 9.7796 0

0.05523 0

2084 0

0 10.1082 0

0.05234 0

2085 0

0 10.4479 0

0.04961 0

2086 0

0 10.7989 0

0.04702 0

2087 0

0 11.1618 0

0.04456 0

2088 0

0 11.5368 0

0.04224 0

2089 0

0 11.9244 0

0.04003 0

2090 0

0 12.3251 0

0.03794 0

2091 1,722,688 1,722,688 12.7392 21,945,672 0.03596 789,166

$41,106,285

$41,106,285

$183,987,851

$62,155,871

Levelized (beginning of year payment, mid year interest)

AMOUNT TO RECOVER Cost Jurisdictional Jurisdictional Present Estimate Cost in Escalation Cost in Discount Value to Nominal $s Nominal $s Factor Future $'s Factor Decommission (1)

(2)

(3)

(4)

(5)

(6)

Prairie Island Unit 1 4.36%

Factors 2014 100.0000%

3.36%

5.35%

2033 2033

$258,731

$258,731 2.2498

$582,094 0.94922

$552,535 2034 1,060,150 1,060,150 2.3479 2,489,125 0.90101 2,242,727 2035 1,944,088 1,944,088 2.4503 4,763,599 0.85526 4,074,116 2036 2,058,613 2,058,613 2.5571 5,264,080 0.81182 4,273,486 2037 1,302,185 1,302,185 2.6686 3,475,010 0.77060 2,677,843 2038 61,334 61,334 2.7850 170,815 0.73146 124,944 2039 61,334 61,334 2.9064 178,261 0.69432 123,770 2040 61,502 61,502 3.0331 186,541 0.65906 122,942 2041 61,334 61,334 3.1653 194,140 0.62559 121,452 2042 61,334 61,334 3.3033 202,604 0.59382 120,310 2043 61,334 61,334 3.4474 211,442 0.56366 119,182 2044 61,502 61,502 3.5977 221,265 0.53504 118,386 2045 61,334 61,334 3.7545 230,278 0.50787 116,951 2046 61,334 61,334 3.9182 240,318 0.48208 115,853 2047 61,334 61,334 4.0891 250,800 0.45760 114,766 2048 61,502 61,502 4.2674 262,453 0.43436 113,999 2049 61,334 61,334 4.4534 273,144 0.41230 112,617 2050 61,334 61,334 4.6476 285,055 0.39136 111,559 2051 11,589,297 11,589,297 4.8502 56,210,410 0.37149 20,881,605 2052 17,939,615 17,939,615 5.0617 90,804,948 0.35262 32,019,641 2053 8,430,639 8,430,639 5.2824 44,534,006 0.33471 14,905,977 2054 0

0 3.7506 0

0.31772 0

2055 0

0 3.8766 0

0.30158 0

2056 0

0 4.0069 0

0.28627 0

2057 0

0 4.1415 0

0.27173 0

2058 0

0 4.2807 0

0.25793 0

2059 0

0 4.4245 0

0.24483 0

2060 0

0 4.5731 0

0.23240 0

2061 0

0 4.7268 0

0.22060 0

2062 0

0 4.8856 0

0.20939 0

2063 0

0 5.0498 0

0.19876 0

2064 0

0 5.2195 0

0.18867 0

2065 0

0 5.3948 0

0.17909 0

2066 0

0 5.5761 0

0.16999 0

2067 0

0 5.7635 0

0.16136 0

2068 0

0 5.9571 0

0.15316 0

2069 0

0 6.1573 0

0.14539 0

2070 0

0 6.3641 0

0.13800 0

2071 0

0 6.5780 0

0.13099 0

2072 0

0 6.7990 0

0.12434 0

2073 0

0 7.0274 0

0.11803 0

2074 0

0 7.2636 0

0.11203 0

2075 0

0 7.5076 0

0.10634 0

2076 0

0 7.7599 0

0.10094 0

2077 0

0 8.0206 0

0.09582 0

2078 822,778 822,778 8.2901 6,820,914 0.09095 620,362

$46,203,941

$46,203,941

$217,851,305

$83,785,024

Levelized (beginning of year payment, mid year interest)

AMOUNT TO RECOVER Cost Jurisdictional Jurisdictional Present Estimate Cost in Escalation Cost in Discount Value to Nominal $s Nominal $s Factor Future $'s Factor Decommission (1)

(2)

(3)

(4)

(5)

(6)

Prairie Island Unit 2 4.36%

Factors 2014 100.0000%

3.36%

5.23%

2034 2034

$54,987

$54,987 2.3479

$129,104 0.95030

$122,688 2035 390,765 390,765 2.4503 957,490 0.90307 864,681 2036 1,832,518 1,832,518 2.5571 4,685,932 0.85819 4,021,420 2037 2,148,588 2,148,588 2.6686 5,733,721 0.81553 4,676,021 2038 1,894,535 1,894,535 2.7850 5,276,280 0.77500 4,089,117 2039 191,918 191,918 2.9064 557,791 0.73648 410,802 2040 61,502 61,502 3.0331 186,541 0.69988 130,557 2041 61,334 61,334 3.1653 194,140 0.66509 129,121 2042 61,334 61,334 3.3033 202,604 0.63204 128,054 2043 61,334 61,334 3.4474 211,442 0.60063 126,999 2044 61,502 61,502 3.5977 221,265 0.57077 126,292 2045 61,334 61,334 3.7545 230,278 0.54241 124,905 2046 61,334 61,334 3.9182 240,318 0.51545 123,872 2047 61,334 61,334 4.0891 250,800 0.48983 122,850 2048 61,502 61,502 4.2674 262,453 0.46549 122,169 2049 61,334 61,334 4.4534 273,144 0.44235 120,825 2050 61,334 61,334 4.6476 285,055 0.42037 119,829 2051 14,870,672 14,870,672 4.8502 72,125,732 0.39947 28,812,066 2052 23,028,526 23,028,526 5.0617 116,563,490 0.37962 44,249,832 2053 10,822,149 10,822,149 5.2824 57,166,919 0.36075 20,622,966 2054 0

3.7506 0.34282 0

2055 0

3.8766 0.32578 0

2056 0

4.0069 0.30959 0

2057 0

4.1415 0.29421 0

2058 0

4.2807 0.27958 0

2059 0

4.4245 0.26569 0

2060 0

4.5731 0.25248 0

2061 0

4.7268 0.23993 0

2062 0

4.8856 0.22801 0

2063 0

5.0498 0.21668 0

2064 0

5.2195 0.20591 0

2065 0

5.3948 0.19567 0

2066 0

5.5761 0.18595 0

2067 0

5.7635 0.17671 0

2068 0

5.9571 0.16792 0

2069 0

6.1573 0.15958 0

2070 0

6.3641 0.15165 0

2071 0

6.5780 0.14411 0

2072 0

6.7990 0.13695 0

2073 0

7.0274 0.13014 0

2074 0

7.2636 0.12367 0

2075 0

7.5076 0.11753 0

2076 0

7.7599 0.11169 0

2077 0

8.0206 0.10614 0

2078 642,016 642,016 8.2901 5,322,380 0.10086 536,815

$56,551,850

$56,551,850

$271,076,882

$109,781,880

$143,862,075

$143,862,075

$672,916,038

$255,722,774

ENCLOSURE 8 ANNUAL ACCRUAL

SUMMARY

- ITEMIZED TRUST FUND BALANCES 4 Pages Follow

Balances as of January 01, 2016 Excluded from NRC calculation External Qualified Monti PI1 PI2 Monti PI1 PI2 Monti PI1 PI2 All Units Radiological 405,148,477 287,487,688 313,577,154 51,604,507 50,119,832 53,791,420 456,752,983 337,607,521 367,368,574 1,161,729,078 Spent Fuel 233,641,989 90,470,617 104,844,166 29,759,410 15,772,405 17,985,100 263,401,399 106,243,021 122,829,267 492,473,687 Site Restoration 20,757,354 18,121,699 21,453,051 2,643,902 3,159,288 3,680,083 23,401,257 21,280,988 25,133,134 69,815,379 Total 659,547,820 396,080,005 439,874,371 84,007,819 69,051,525 75,456,604 743,555,639 465,131,530 515,330,976 1,724,018,144 External Escrow Monti PI1 PI2 Monti PI1 PI2 Monti PI1 PI2 Radiological 8,781 29,837 54,615 16,799 (6,274)

(13,340) 25,580 23,563 41,275 90,418 Spent Fuel 5,064 9,389 18,261 9,688 (1,974)

(4,460) 14,752 7,415 13,800 35,967 Site Restoration 450 1,881 3,736 861 (395)

(913) 1,311 1,485 2,824 5,620 Total 14,295 41,107 76,612 27,348 (8,644)

(18,713) 41,643 32,463 57,899 132,005 Grand Total Monti PI1 PI2 Monti PI1 PI2 Monti PI1 PI2 Radiological 405,157,258 287,517,525 313,631,769 51,621,306 50,113,558 53,778,080 456,778,564 337,631,083 367,409,850 1,161,819,497 Spent Fuel 233,647,053 90,480,006 104,862,427 29,769,098 15,770,430 17,980,640 263,416,150 106,250,437 122,843,067 492,509,654 Site Restoration 20,757,804 18,123,580 21,456,787 2,644,763 3,158,893 3,679,171 23,402,567 21,282,473 25,135,958 69,820,999 Total 659,562,115 396,121,112 439,950,984 84,035,167 69,042,881 75,437,891 743,597,281 465,163,993 515,388,875 1,724,150,149 Book Value Market Adjustment Market Value

Balances as of January 01, 2016 External Qualified Monti PI1 PI2 Monti PI1 PI2 Monti PI1 PI2 MN Retail 486,466,245.47 292,642,194.12 326,089,262.08 62,236,661.95 50,979,934.66 55,802,670.01 548,702,907.42 343,622,128.78 381,891,932.09 ND Retail 33,482,174.88 22,093,438.17 23,410,497.91 4,705,637.15 3,748,795.98 4,266,330.11 38,187,812.03 25,842,234.15 27,676,828.02 SD Retail 20,471,827.10 16,180,110.25 17,565,867.01 3,185,343.13 2,906,182.08 3,393,103.91 23,657,170.23 19,086,292.33 20,958,970.92 MN FERC 9,324,212.18 7,174,049.16 6,696,689.36 1,656,357.28 1,490,082.44 1,157,749.02 10,980,569.46 8,664,131.60 7,854,438.38 WI FERC 9,911,815.61 5,837,935.23 5,401,951.27 1,085,896.58 (497,129.89) 801,557.33 10,997,712.19 5,340,805.34 6,203,508.60 WI Retail 99,891,544.42 52,152,277.69 60,710,103.86 11,137,922.86 10,423,660.00 10,035,193.72 111,029,467.28 62,575,937.69 70,745,297.58 Total 659,547,819.66 396,080,004.62 439,874,371.49 84,007,818.95 69,051,525.27 75,456,604.10 743,555,638.61 465,131,529.89 515,330,975.59 External Escrow MN Retail 7,417.14 27,991.87 49,035.44 24,566.94 (6,799.08)

(5,881.76) 31,984.08 21,192.79 43,153.68 WI FERC 623.21 1,065.86 1,257.40 47.13 (355.04)

(25.61) 670.34 710.82 1,231.79 ND Retail 4,233.24 2,926.43 15,255.36 (3,787.44)

(1,100.88)

(12,904.05) 445.80 1,825.55 2,351.31 WI Retail 2,021.29 9,122.95 11,064.12 6,521.27 (388.90) 98.36 8,542.56 8,734.05 11,162.48 Total 14,294.88 41,107.11 76,612.32 27,347.90 (8,643.90)

(18,713.06) 41,642.78 32,463.21 57,899.26 Internal Grand Total 659,562,114.54 396,121,111.73 439,950,983.81 84,035,166.85 69,042,881.37 75,437,891.04 743,597,281.39 465,163,993.10 515,388,874.85 Book Value Market Adjust Market Value

Balances as of January 01, 2017 Excluded from NRC calculation External Qualified Monti PI1 PI2 Monti PI1 PI2 Monti PI1 PI2 All Units Radiological 420,228,430 287,702,094 319,772,014 78,373,983 70,937,606 75,854,626 498,602,413 358,639,700 395,626,640 1,252,868,754 Spent Fuel 242,338,332 90,538,089 106,915,411 45,196,895 22,323,631 25,361,908 287,535,228 112,861,720 132,277,319 532,674,267 Site Restoration 21,529,960 18,135,214 21,876,866 4,015,408 4,471,531 5,189,514 25,545,368 22,606,745 27,066,380 75,218,493 Total 684,096,722 396,375,398 448,564,291 127,586,287 97,732,767 106,406,049 811,683,009 494,108,165 554,970,339 1,860,761,513 External Escrow Monti PI1 PI2 Monti PI1 PI2 Monti PI1 PI2 Radiological Spent Fuel Site Restoration Total Grand Total Monti PI1 PI2 Monti PI1 PI2 Monti PI1 PI2 Radiological 420,228,430 287,702,094 319,772,014 78,373,983 70,937,606 75,854,626 498,602,413 358,639,700 395,626,640 1,252,868,754 Spent Fuel 242,338,332 90,538,089 106,915,411 45,196,895 22,323,631 25,361,908 287,535,228 112,861,720 132,277,319 532,674,267 Site Restoration 21,529,960 18,135,214 21,876,866 4,015,408 4,471,531 5,189,514 25,545,368 22,606,745 27,066,380 75,218,493 Total 684,096,722 396,375,398 448,564,291 127,586,287 97,732,767 106,406,049 811,683,009 494,108,165 554,970,339 1,860,761,513 Book Value Market Adjustment Market Value

Balances as of January 01, 2017 External Qualified Monti PI1 PI2 Monti PI1 PI2 Monti PI1 PI2 MN Retail 504,432,968.35 292,599,638.67 331,992,382.37 94,401,656.34 72,152,559.93 78,707,504.84 598,834,624.69 364,752,198.60 410,699,887.21 ND Retail 34,078,510.91 22,065,452.54 23,788,041.47 6,910,237.26 5,339,777.23 5,923,430.23 40,988,748.17 27,405,229.77 29,711,471.70 SD Retail 21,484,314.21 16,318,105.47 18,128,356.84 4,565,124.65 4,090,619.70 4,663,553.09 26,049,438.86 20,408,725.17 22,791,909.93 MN FERC 9,416,018.29 7,171,931.58 6,804,931.54 2,286,117.72 2,023,867.44 1,628,031.30 11,702,136.01 9,195,799.02 8,432,962.84 WI FERC 10,004,575.11 5,836,629.84 5,489,199.02 1,716,721.03 (168,090.30) 1,173,164.24 11,721,296.14 5,668,539.54 6,662,363.26 WI Retail 104,680,335.11 52,383,639.50 62,361,379.54 17,706,430.04 14,294,033.43 14,310,365.41 122,386,765.15 66,677,672.93 76,671,744.95 Total 684,096,721.98 396,375,397.60 448,564,290.78 127,586,287.04 97,732,767.43 106,406,049.11 811,683,009.02 494,108,165.03 554,970,339.89 External Escrow MN Retail WI FERC ND Retail WI Retail Total Internal Grand Total 684,096,721.98 396,375,397.60 448,564,290.78 127,586,287.04 97,732,767.43 106,406,049.11 811,683,009.02 494,108,165.03 554,970,339.89 Book Value Market Adjust Market Value