AEP-NRC-2017-12, Decommissioning Funding Status Report

Decommissioning Funding Status Report

ML17081A443
Person / Time
Site:	Cook
Issue date:	03/21/2017
From:	Lies Q Indiana Michigan Power Co
To:	Document Control Desk, Office of Nuclear Reactor Regulation
References
AEP-NRC-2017-12
Download: ML17081A443 (3)

Text

s INDIANA Indiana Michigan Power MICHIGAN Cook Nuclear Plant POWER One Cook Place .

Bridgman, Ml 49106 A unit ofAmerican Electric Power Indiana Michiga nPower.corn March 21, 2017 AEP-NRC-2017-12 10 CFR 50. 75(f)(1)

Docket Nos.: 50-315 50-316 U.S. Nuclear Regulatory Commission ATTN: Document Control Desk Washington, DC 20555-001 Donald C. Cook Nuclear Plant Units 1 and 2 DECOMMISSIONING FUNDING STATUS REPORT In accordance with the requirements of 10 CFR 50.75(f)(1), Indiana Michigan Power Company, the licensee for Donald C. Cook Nuclear Plant (CNP), Units 1 and 2, hereby submits the biennial report on the status of decommissioning funding. The recovery of decommissioning funds for the eventual decommissioning of CNP Units 1 and 2 is fully assured through cost of service regulation and the .

resulting contribution of funds into an external trust.

• When projected to the current license expiration date for each unit, the Nuclear Decommissioning Trust balance is greater than the U. S. Nuclear Regulatory Commission calculated minimum cost of decommissioning pursuant to 10 CFR 50.75(b) and (c), confirming compliance with the financial assurance requirements of 10 CFR 50. 75.

This 'letter contains no new commitments. IL you have any questions regarding the report or decommissioning funding, please contact Mr. Michael K. Scarpello, Regulatory Affairs Manager, at (269) 466-2649.

Sincerely, 1~~.J-~

Q~nelies Site Vice President DMB/mll Enclosure c: R. J. Ancona, MPSC A. W. Dietrich, NRC, Washington, D.C.

MDEQ - RMD/RPS NRC Resident Inspector C. D. Pederson, NRC, Region Ill A. J. Williamson, AEP Ft. Wayne, w/o enclosure

ENCLOSURE TO AEP-NRC-2017-12 Indiana Michigan Power Company, Donald C. Cook Nuclear Plant Units 1 and 2 2016 U. 5. Nuclear Regulatory Commission Financial Assurance Requirements Report for Decommissioning Nuclear Power Reactors As provided in 10 CFR 50.75(f)(1), each power reactor licensee is required to report to the U. S. Nuclear Regulatory Commission (NRC) on a calendar year

• basis, beginning on March 31, 1999, and every two years thereafter, on the status of its decommissioning funding for each reactor or share of reactors it owns.

1. The minimum decommissioning cost estimate, pursuant to 10 CFR 50. 75(b) and (c):

a. Cook Unit 1 $487,715,537

b. Cook Unit 2 $492,049,320

c. Total $979,764,857 These cost estimates were determined using the burial cost escalation values and the methods outlined in NUREG-1307, Revision 16, to determine minimum values.

2. The amount accumulated in the fund allocated to radiological decommissioning reflects the market value of the funds accumulated through December 31, 2016, net of all taxes currently due for items included in 10 CFR 50.75(b) and (c) are:

a. Cook Unit 1 $459,454,502

b. Cook Unit 2 $418,248,246

c. Total $877,702,748

3. A schedule of the annual amounts to be collected for items in 10 CFR 50.75(b) and (c) are as follows:

a. See Table 1 below for schedule of contributions. While there are no changes for Indiana and Michigan, the FERC contributions are expected to decline in years 2019, 2020, 2021, 2026, 2027, and 2034 as wholesale customer's contracts expire.

The citations for the Orders that provide these rates are the State of Michigan Case Number U-15276 and the State of Indiana Cause Number 44075

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 are as follows:

A two percent real rate of return was applied to the annual balance for future funding projections. Incorporating the two percent real rate of return on trust assets as well as future contributions to the trust results in projected trust fund balances of approximately

$653 million for Unit 1 and $633 million for Unit 2 net of tax at the time those units are shut-down, which are above the NRC minimum decommissioning cost estimates.

5. Any contracts upon which the licensee is relying pursuant to 10 CFR 50. 75(e)(1 )(v):

None

6. Any modifications occurring to a licensee's current method of providing financial assurances since the last submitted report:

None

7. Any material changes to trust agreements:

None

Enclosure to AEP-NRC-2017-12 Page 2 Table 1 Unit 1 Contributions Indiana Michigan FERC Total 2017 $973,000 $729,750 $581,044 $2,283,794 2018 $973,000 $729,750 $581,044 $2,283,794 2019 $973,000 $729,750 $569,754 $2,272,504 2020 $973,000 $729,750 $379,918 $2,082,668 2021 $973,000 $729,750 $250,082 $1,952,832 2022 $973,000 $729,750 $250,082 $1,952,832 2023 $973,000 $729,750 $250,082 $1,952,832 2024 $973,000 $729,750 $250,082 $1,952,832 2025 $973,000 $729,750 $250,082 $1,952,832 2026 $973,000 $729,750 $241,873 $1,944,623 2027 $973,000 $729,750 $236,010 $1,938,760 2028 $973,000 $729,750 $236,010 $1,938,760 2029 $973,000 $729,750 $236,010 $1,938,760 2030 $973,000 $729,750 $236,010 $1,938,760 2031 $973,000 $729,750 $236,010 $1,938,760 2032 $973,000 $729,750 $236,010 $1,938,760 2033 $973,000 $729,750 $236,010 $1,938,760 10/25/2034 $810,833 $608,125 $87,479 $1,506,437 Unit 2 Contributions Indiana Michigan FERC Total 2017 $973,000 $729,750 $581,044 $2,283,794 2018 $973,000 $729,750 $581,044 $2,283,794 2019 $973,000 $729,750 $569,754 $2,272,504 2020 $973,000 $729,750 $379,918 $2,082,668 2021 $973,000 $729,750 $250,082 $1,952,832 2022 $973,000 $729,750 $250,082 $1,952,832 2023 $973,000 $729,750 $250,082 $1,952,832 2024 $973,000 $729,750 $250,082 $1,952,832 2025 $973,000 $729,750 $250,082 $1,952,832 2026 $973,000 $729,750 $241,873 $1,944,623 2027 $973,000 $729,750 $236,010 $1,938,760 2028 $973,000 $729,750 $236,010 $1,938,760 2029 $973,000 $729,750 $236,010 $1,938,760 2030 $973,000 $729,750 $236,010 $1,938,760 2031 $973,000 $729,750 $236,010 $1,938,760 2032 $973,000 $729,750 $236,010 $1,938,760 2033 $973,000 $729,750 $236,010 $1,938,760 2034 $973,000 $729,750 $104,974 $1,807,724 2035 $973,000 $729,750 $39,814 $1,742,564 2036 $973,000 $729,750 $39,814 $1,742,564 12/23/2037 $973,000 $729,750 $39,814 $1,742,564