AEP-NRC-2025-23, Decommissioning Funding Status Report
| ML25090A198 | |
| Person / Time | |
|---|---|
| Site: | Cook  |
| Issue date: | 03/31/2025 |
| From: | Dailey S Indiana Michigan Power Co |
| To: | Office of Nuclear Reactor Regulation, Document Control Desk |
| References | |
| AEP-NRC-2025-23 | |
| Download: ML25090A198 (1) | |
Text
An MP Company BOUNDLESS ENERGr March 31, 2025 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 Indiana Michigan Power Cook Nuclear Plant One Cook Place Bridgman, Ml 49106 indianamichiganpower.com AEP-NRC-2025-23 10 CFR 50. 75(f)(1)
In accordance with the requirements of 10 CFR 50. 75(f)(1 ), Indiana Michigan Power Company (l&M),
the licensee for Donald C. Cook Nuclear Plant (CNP) Unit 1 and Unit 2, is submitting the biennial report on the status of decommissioning funding for U. S. Nuclear Regulatory Commission review and approval. This report was previously provided by letter dated March 27, 2025, (ADAMS Accession No. ML25086A224) and was subsequently found to contain an error in regard to referencing two Enclosures whereby only one Enclosure was provided. Additionally, clarifying edits were also made to the Enclosure. This letter supersedes the previous letter in its entirety.
The recovery of decommissioning funds for the eventual decommissioning of CNP Unit 1 and Unit 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.
The enclosure to this letter provides l&M's CNP Units 1 and 2 2024 U. S. Nuclear Regulatory Commission Financial Assurance Requirements Report for Decommissioning Nuclear Power Reactors. There are no new or revised commitments in this letter. Should you have any questions, please contact Mr. Michael K. Scarpello, Regulatory Affairs Director at (269) 466-2649.
Sincerely,
~A Scott A. Dailey Site Vice President TCS/sjh
Enclosure:
Indiana Michigan Power Company, Donald C. Cook Nuclear Plant Units 1 and 2 2024 U. S. Nuclear Regulatory Commission Financial Assurance Requirements Report for Decommissioning Nuclear Power Reactors
U. S. Nuclear Regulatory Commission Page 2 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 AEP-NRC-2025-23
ENCLOSURE TO AEP-NRC-2025-23 Indiana Michigan Power Company, Donald C. Cook Nuclear Plant Units 1 and 2 2024 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
$583,900,276
- b.
Cook Unit 2
$589,088,746 C.
Total
$1,172,989,022 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, 2024, net of all taxes currently due for items included in 10 CFR 50.75(b) and (c) are:
- a.
Cook Unit 1
$1,160,691,836
- b.
Cook Unit 2
$1,055,233,681 C.
Total
$2,215,925,517
- 3. A schedule of the annual amounts to be collected for items in 10 CFR 50.75(b) and (c) are as follows:
None. Indiana and Michigan State Commissions find the Nuclear Decommissioning Trust to be adequately funded thus future contributions have been reduced to $0.
The citations for the Orders that provide these zero rates are the State of Indiana Cause Number 45933 and the State of Michigan Case Number U-21461.
- 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 to the trust results in projected trust fund balances of approximately $1.360 billion for Unit 1 and $1.297 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 question 1 above.
- 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:
Previously the licensee was an electric utility relying on an external sinking fund pursuant to
- 50. 75(e)(1 )(ii). Now the licensee is an electric utility relying on prepayment pursuant to 50.75(e)(1 )(i).
- 7. Any material changes to trust agreements:
None.