AEP-NRC-2023-15, Decommissioning Funding Status Report

Decommissioning Funding Status Report

ML23087A116
Person / Time
Site:	Cook
Issue date:	03/28/2023
From:	Lies Q Indiana Michigan Power Co
To:	Office of Nuclear Reactor Regulation, Document Control Desk
References
AEP-NRC-2023-15
Download: ML23087A116 (1)

Text

Indiana Michigan Power INDIANA Cook Nuclear Plant MICHIGAN One Cook Place POWER " Bridgman, Ml 49106 indianamichiganpower.com An MP Company BOUNDLESS ENERG Y-

March 28, 2023 AEP-NRC-2023-15 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 1 O CFR 50. 75.

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

Sincerely, a.l~ j-~

Senior Vice President and Chief Nuclear Officer

JMT/sjh

Enclosure:

Indiana Michigan Power Company, Donald C. Cook Nuclear Plant Units 1 and 2 2022 U.S. Nuclear Regulatory Commission Financial Assurance Requirements Report for Decommissioning Nuclear Power Reactors U. S. Nuclear Regulatory Commission AEP-NRC-2023-15 Page2

c:

EGLE - RMD/RPS J. B. Giessner-NRC Region Ill NRC Resident Inspector N. Quilico-MPSC R. M. Sistevaris - AEP Ft. Wayne, w/o enclosure S. P. Wall-NRC Washington D.C.

A. J. Williamson -AEP Ft. Wayne, w/o enclosure ENCLOSURE TO AEP-NRC-2023-15

Indiana Michigan Power Company, Donald C. Cook Nuclear Plant Units 1 and 2 2022 U.S. 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 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 $575,325,532

b. Cook Unit 2 $580,437,808 C. Total $1,155,763,340

These cost estimates were determined using the burial cost escalation values and the methods outlined in NUREG-1307, Revision 19, 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, 2022, net of all taxes currently due for items included in 10 CFR 50.75(b) and (c) are:

a. Cook Unit 1 $882,504,898

b. Cook Unit 2 $802,765,742 C. Total $1,685,270,640

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

See Table 1 (attached) for schedule of contributions. The Indiana and Michigan contributions reflect the most recent rate cases referenced below. The FERC contributions continue to reflect the expected decline as wholesale customer contracts expire.

The citations for the Orders that provide these rates are the State of Michigan Case Numbers U-20359 and U-18370 and the State of Indiana Cause Number 45576.

Note that per the State of Indiana Cause Number 45576 concerning expense adjustments:

$2.0 million decrease in nuclear decommissioning expense. The Settling Parties agree that Indiana Michigan Power Company may seek an adjustment to the funding level of the Nuclear Decommissioning Trust based on future analysis of the adequacy of the Nuclear Decommissioning Trust funds to pay for decommissioning.

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 is 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 $1.076 billion for Unit 1 and $1.029 billion for Unit 2 net of tax at the time those units are shut down. These amounts are above the NRC minimum decommissioning cost estimates shown in item 1 above.

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

None Enclosure to AEP-NRC-2023-15 Page 2

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

Table 1 Unit 1 Contributions Indiana Michigan FERC Total 12/31/2022 2023 $0 $465,000 $153,719 $618,719 2024 $0 $465,000 $153,719 $618,719 2025 $0 $465,000 $153,719 $618,719 2026 $0 $465,000 $150,249 $615,249 2027 $0 $465,000 $146,779 $611,779 2028 $0 $465,000 $146,779 $611,779 2029 $0 $465,000 $146,779 $611,779 2030 $0 $465,000 $146,779 $611,779 2031 $0 $465,000 $146,779 $611,779 2032 $0 $465,000 $146,779 $611,779 2033 $0 $465,000 $129,334 $594,334 10/25/2034 $0 $387,500 $71,922 $459,422

Unit2 Contributions Indiana Michigan FERC Total 12/31/2022 2023 $0 $465,000 $153,719 $618,719 2024 $0 $465,000 $153,719 $618,719 2025 $0 $465,000 $153,719 $618,719 2026 $0 $465,000 $150,249 $615,249 2027 $0 $465,000 $146,779 $611,779 2028 $0 $465,000 $146,779 $611,779 2029 $0 $465,000 $146,779 $611,779 2030 $0 $465,000 $146,779 $611,779 2031 $0 $465,000 $146,779 $611,779 2032 $0 $465,000 $146,779 $611,779 2033 $0 $465,000 $129,334 $594,334 2034 $0 $465,000 $86,306 $551,306 2035 $0 $465,000 $60,725 $525,725 2036 $0 $465,000 $60,725 $525,725 12/23/2037 $0 $465,000 $60,725 $525,725