Text

Millstone, Unit 1 - Decommissioning Funding Status Report
	ML16085A346
Person / Time
Site:	Millstone
Issue date:	03/24/2016
From:	Sartain M D; Dominion Nuclear Connecticut
To:	; Document Control Desk, Office of Nuclear Material Safety and Safeguards
References
	16-107 DPR-021
	Download: ML16085A346 (6)
	v • d • e

Dominion Nuclear Connecticut, Inc. 5000 Dominion Boulevard, Glen Allen, VA 23060 Dominion Web Address: www.dom.com March 24, 2016 United States Nuclear Regulatory Commission Attention:

Document Control Desk Washington, D. C. 20555-0001 DOMINION NUCLEAR CONNECTICUT, INC. MILLSTONE POWER STATION UNIT 1 DECOMMISSIONING FUNDING STATUS REPORT Serial No. NL&OS/T JS Docket No. License No.16-107 Rev.a 50-245 DPR-21 Pursuant to 10 CFR 50.75(f)(1) and 10 CFR 50.82(a)(8)(v)-(vii), Dominion Nuclear Connecticut, Inc. (DNC) is providing this report on the status of decommissioning funding for Millstone Power Station Unit 1 (MPS1). Attachment 1 provides the following information for MPS1: Table I -Decommissioning Funding Status Report for MPS1 Summary Information as of December 31, 2015 Table II -Decommissioning Funding Status Report for MPS1 Annual Cash Flow Analysis Starting January 1, 2016 through the 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 2014 dollars to 2016 dollars is 0.99% and is based upon the average of CPl-U rates for that period. The mnemonics are "FCPIU.US, CPl-U Not Seasonally Adjusted (NSA) All Urban Consumers, All Items US City Average (Index, 1982-84=100, SA)." 2. The escalation of decommissioning costs, shown in Table II is held at 0% based on assuming a 2% Real Rate of Return. 3. The growth rate on Trust Funds is held at 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 DNC 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. 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, 2015 (Serial No.15-099) for MPS1 there have been no material changes to the Trust agreements established for nuclear decommissioning.

.. Serial No.16-107 MPS1 Decommissioning Funding Status Report Page 2 of 2 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 Dominion Nuclear Connecticut, Inc.

Attachment:

1. Decommissioning Funding Status Report for MPS1 Summary Information as of December 31, 2015 Commitments made in this letter: None cc: U. S. Nuclear Regulatory Commission Region I 2100 Renaissance Blvd, Suite 100 King of Prussia, PA 19406-2713 Mr. T. Carter NRC Senior Project Manager (MPS1) U. S. Nuclear Regulatory Commission Two White Flint North Mail Stop T-8 F5 11545 Rockville Pike Rockville, MD 20852-2738 Ms. L. A. Kauffman U. S. Nuclear Regulatory Commission, Region 1 2100 Renaissance Blvd Suite 100 King of Prussia, PA 19406-2713

,. Attachment 1 Decommissioning Funding Status Report for MPS1 Summary Information as of December 31, 2015 Millstone Power Station -Unit 1 Dominion Nuclear Connecticut, Inc. (DNC) Serial No.16-107 Docket No.50-245 1 *' Serial No.16-107 Docket No.50-245 Page 1 of 3 Millstone Power Station Unit 1 Decommissioning Funding Status Report as of December 31, 2015 Table I Decommissioning Funding Status Report for MPS1 Summary Information as of December 31, 2015 10 CFR 50.82 (a)(8)(v)-(vii) lln mllllonsl Decommissioninci Trust Fund Balances 10 CFR Reference I s0.821all8lMIAl Fund Balance Type of Trusts Comments $ 444.104 Unit 1 aualified fund balance As of: 12/31/2015

$ -Unit 1 non-aualified fund balance As of: 12/31/2015

$ 0.977 Less costs incurred but not yet billed to Trust Actual Cost in: 2015 $ 443.128 Adjusted decommissioning fund balance As of: 12/31/2015 Other Financial Assurance Methods Being Relied Upon 10 CFR Reference ls0.82(a)(8lMCAl None Prior Years Decommissioning Expenditures 10 CFR Reference I so.a21al18lMCAl Total License Term Spent Fuel Mgmt Site Restoration Comments $ 4.837 $ 0.941 $ 3.896 $ -2015 Cost in: 2015 $ 77.062 $ 45.612 $ 31.449 $ -2001-2014 Cost in: As-Soent $ 81.898 $ 46.553 $ 35.345 $ -Total Prior Year in: As-Soent Prior Year Decommissioning Expenditures Variance to Estimated Cost 10 CFR Reference ls0.821all8llvllBl Total License Term Spent Fuel Mgmt Site Restoration Comments $ 4.837 $ -$ -$ -Actual Cost in 2015 $ 6.300 $ -$ -$ -NRCAuth $in 2015 $ 11.463) $ -$ -$ -Variance:

Underrun to NRC Authorized Expenditures Remaining Decommissioning Estimated Cost 10 CFR Reference I 50.82Ca)(8)(v)(Bl Total License Termination Spent Fuel Mgmt Site Restoration Comments $ 387.025 $ 286.288 $ 79.647 $ 21.091 Estimate in: 2016 Decommissioning Criteria Upon Which the Estimate is Based 10 CFR Reference lso.a21a11a11v1cs1 SAFSTOR Any Modification To Method of Providing Financial Assurance 10 CFR Reference I 50.82(a)(8)(v)(C)

None Any Material Changes To Trust Agreement Since Previous Report 10 CFR Reference I 50.82CalC8lMCDl None Need For Additional Financial Assurance 1 O CFR Reference I so.a21al1Bllvll None See Annual Cash Flow Analysis in Table II Inputs to Remaining Cost and Funding Analysis I 2016 Start year of Remainina Cost and Fundil'l!l analysis 0.99% Escalate study dollars from Study Year to Start Year of Analysis usina an averaae of CPI rates 0.00% Escalation rate 2016 & Beyond 2.00% Fund arowth rate 2016 & Beyond (Reflects NRC allowed 2% Real Rate of Return) Projected annual exPenditures

-see Annual Cash Flow Analysis in Table II Notes: Table I I s0.821all8llvllllAl Dollars I I Dollars Dollars Dollars I Dollars Dollars I 50.82(all8lCvlllCBl Dollars I I I lso.a21al18Hvlil!Cl I 1) Previous decommissioning expenditures represent the withdrawals from the nuclear decommissioning trusts made by Dominion 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 DNC's previous notices to the NRC, as well as allowed ordinary administrative costs.

Year 2016 $ 2017 $ 2018 $ 2019 $ 2020 $ 2021 $ 2022 $ 2023 $ 2024 $ 2025 $ 2026 $ 2027 $ 2028 $ 2029 $ 2030 $ 2031 $ 2032 $ 2033 $ 2034 $ 2035 $ 2036 $ 2037 $ 2038 $ 2039 $ 2040 $ 2041 $ 2042 $ 2043 $ 2044 $ 2045 $ 2046 $ 2047 $ 2048 $ 2049 $ 2050 $ 2051 $ 2052 $ 2053 $ 2054 $ 2055 $ 2056 $ 2057 $ 2058 $ 2059 $ 2060 $ 2061 $ 2062 $ 2063 $ 2064 $ 2065 $ 2066 $ 2067 $ 2068 $ 2069 $ 2070 $ 2071 $ Remaining

$ In Serial No.16-107 Docket No.50-245 Attachment 1 Page 2 of 3 Millstone Power Station Unit 1 Decommissioning Funding Status Report as of December 31, 2015 Table II Decommissioning Funding Status Report for MPS1 Annual Cash Flow Analysis Starting January 1, 2016 through End of Decommissioning 10 CFR 50.82 (a)(B)(v)-(vii) (In millions)

Column 1 Column 2 Column 3 Column 4 Column 5 Column 6 Column 7 Beginning Earnings Remaining Remaining Remaining Remaining End of on License Termination Spent Fuel Mgmt Site Restoration SAFSTOR of Year Trust Funds Expenditures Expenditures Expenditures Expenditures Year Balance (Reflects 2% RRoR) (Reflects 0% Esc) (Reflects 0% Esc) (Reflects 0% Esc) (Reflects 0% Esc) Balance 443.128 $ 8.805 $ 1.050 $ 4.659 $ -$ 5.709 $ 446.224 446.224 $ 8.871 $ 0.925 $ 4.455 $ -$ 5.380 $ 449.715 449.715 $ 8.951 $ 0.923 $ 3.437 $ -$ 4.361 $ 454.306 454.306 $ 9.042 $ 0.923 $ 3.438 $ -$ 4.362 $ 458.986 458.986 $ 9.136 $ 0.923 $ 3.437 $ -$ 4.361 $ 463.762 463.762 $ 9.234 $ 1.554 $ 2.596 $ -$ 4.149 $ 468.846 468.846 $ 9.338 $ 1.554 $ 2.370 $ -$ 3.924 $ 474.260 474.260 $ 9.446 $ 1.554 $ 2.370 $ -$ 3.924 $ 479.783 479.783 $ 9.556 $ 1.554 $ 2.370 $ -$ 3.924 $ 485.415 485.415 $ 9.613 $ 6.820 $ 2.746 $ -$ 9.566 $ 485.462 485.462 $ 9.668 $ 1.554 $ 2.596 $ -$ 4.149 $ 490.980 490.980 $ 9.778 $ 1.554 $ 2.626 $ -$ 4.180 $ 496.578 496.578 $ 9.873 $ 1.554 $ 4.301 $ -$ 5.855 $ 500.595 500.595 $ 9.956 $ 1.554 $ 4.027 $ -$ 5.581 $ 504.971 504.971 $ 10.060 $ 1.554 $ 2.370 $ -$ 3.924 $ 511.107 511.107 $ 10.181 $ 1.554 $ 2.596 $ -$ 4.149 $ 517.138 517.138 $ 10.304 $ 1.554 $ 2.370 $ -$ 3.924 $ 523.518 523.518 $ 10.431 $ 1.554 $ 2.370 $ -$ 3.924 $ 530.026 530.026 $ 10.561 $ 1.554 $ 2.370 $ -$ 3.924 $ 536.663 536.663 $ 10.688 $ 2.181 $ 2.370 $ -$ 4.551 $ 542.800 542.800 $ 10.815 $ 1.554 $ 2.596 $ -$ 4.149 $ 549.465 549.465 $ 10.950 $ 1.554 $ 2.370 $ -$ 3.924 $ 556.492 556.492 $ 11.091 $ 1.554 $ 2.370 $ -$ 3.924 $ 563.659 563.659 $ 11.234 $ 1.554 $ 2.370 $ -$ 3.924 $ 570.969 570.969 $ 11.380 $ 1.554 $ 2.370 $ -$ 3.924 $ 578.425 578.425 $ 11.529 $ 1.554 $ 2.370 $ -$ 3.924 $ 586.031 586.031 $ 11.681 $ 1.554 $ 2.370 $ -$ 3.924 $ 593.789 593.789 $ 11.825 $ 2.742 $ 2.370 $ -$ 5.112 $ 600.502 600.502 $ 11.898 $ 10.654 $ 0.590 $ -$ 11.244 $ 601.155 601.155 $ 11.984 $ 3.896 $ -$ -$ 3.896 $ 609.243 609.243 $ 12.171 $ 1.413 $ -$ -$ 1.413 $ 620.001 620.001 $ 12.386 $ 1.413 $ -$ -$ 1.413 $ 630.974 630.974 $ 12.594 $ 2.553 $ -$ -$ 2.553 $ 641.015 641.015 $ 12.249 $ 57.145 $ -$ -$ 57.145 $ 596.119 596.119 $ 11.125 $ 79.702 $ -$ -$ 79.702 $ 527.542 527.542 $ 9.809 $ 74.206 $ -$ -$ 74.206 $ 463.145 463.145 $ 9.251 $ 1.202 $ -$ -$ 1.202 $ 471.194 471.194 $ 9.217 $ 0.104 $ -$ 20.631 $ 20.735 $ 459.676 459.676 $ 9.189 $ 0.039 $ -$ 0.366 $ 0.404 $ 468.461 468.461 $ 9.368 $ -$ -$ 0.094 $ 0.094 $ 477.735 477.735 $ 9.555 $ -$ -$ -$ -$ 487.290 487.290 $ 9.746 $ -$ -$ -$ -$ 497.035 497.035 $ 9.941 $ -$ -$ -$ -$ 506.976 506.976 $ 10.140 $ -$ -$ -$ -$ 517.116 517.116 $ 10.342 $ -$ -$ -$ -$ 527.458 527.458 $ 10.549 $ -$ -$ -$ -$ 538.007 538.007 $ 10.760 $ -$ -$ -$ -$ 548.767 548.767 $ 10.975 $ -$ -$ -$ -$ 559.743 559.743 $ 11.195 $ -$ -$ -$ -$ 570.937 570.937 $ 11.419 $ -$ -$ -$ -$ 582.356 582.356 $ 11.647 $ -$ -$ -$ -$ 594.003 594.003 $ 11.880 $ -$ -$ -$ -$ 605.883 605.883 $ 12.118 $ -$ -$ -$ -$ 618.001 618.001 $ 12.360 $ -$ -$ -$ -$ 630.361 630.361 $ 12.607 $ -$ -$ -$ -$ 642.968 642.968 $ 12.795 $ 6.396 $ -$ -$ 6.396 $ 649.368 2016 Dollars $ 286.288 $ 79.647 $ 21.091 $ 387.025 Est. Fund Balance (end of Decommissioning) (In Future $escalated at 0.0% & 2.0% Real Rate of Return Fund Growth Rate) $ 649.368 Est. Fund Balance (end of Decommissioning) discounted to 2016 Dollars Discount Rate = 2.00% $ 218.515

'r; Serial No.16-107 Docket No.50-245 Attachment 1 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 2016 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 plus 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)(8)(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 all projected earnings are added and all 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, 2015, 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) and not on any order of rate setting authority.

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.

Dominion Nuclear Connecticut, Inc. 5000 Dominion Boulevard, Glen Allen, VA 23060 Dominion Web Address: www.dom.com March 24, 2016 United States Nuclear Regulatory Commission Attention:

Document Control Desk Washington, D. C. 20555-0001 DOMINION NUCLEAR CONNECTICUT, INC. MILLSTONE POWER STATION UNIT 1 DECOMMISSIONING FUNDING STATUS REPORT Serial No. NL&OS/T JS Docket No. License No.16-107 Rev.a 50-245 DPR-21 Pursuant to 10 CFR 50.75(f)(1) and 10 CFR 50.82(a)(8)(v)-(vii), Dominion Nuclear Connecticut, Inc. (DNC) is providing this report on the status of decommissioning funding for Millstone Power Station Unit 1 (MPS1). Attachment 1 provides the following information for MPS1: Table I -Decommissioning Funding Status Report for MPS1 Summary Information as of December 31, 2015 Table II -Decommissioning Funding Status Report for MPS1 Annual Cash Flow Analysis Starting January 1, 2016 through the 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 2014 dollars to 2016 dollars is 0.99% and is based upon the average of CPl-U rates for that period. The mnemonics are "FCPIU.US, CPl-U Not Seasonally Adjusted (NSA) All Urban Consumers, All Items US City Average (Index, 1982-84=100, SA)." 2. The escalation of decommissioning costs, shown in Table II is held at 0% based on assuming a 2% Real Rate of Return. 3. The growth rate on Trust Funds is held at 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 DNC 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. 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, 2015 (Serial No.15-099) for MPS1 there have been no material changes to the Trust agreements established for nuclear decommissioning.

.. Serial No.16-107 MPS1 Decommissioning Funding Status Report Page 2 of 2 Please contact Mr. Craig D. Sly at (804) 273-2784 if you have any questions or require additional information.