CNL-19-008, Decommissioning Funding Status Report

Decommissioning Funding Status Report

ML19085A372
Person / Time
Site:	Browns Ferry, Watts Bar, Sequoyah
Issue date:	03/26/2019
From:	Henderson E Tennessee Valley Authority
To:	Document Control Desk, Office of Nuclear Reactor Regulation
References
CNL-19-008
Download: ML19085A372 (6)

Text

Tennessee Valley Authority, 1101 Market Street, Chattanooga, Tennessee 37402 CNL-19-008 March 26, 2019 10 CFR 50.75(f)(1)

ATTN: Document Control Desk U.S. Nuclear Regulatory Commission Washington, D.C. 20555-0001 Browns Ferry Nuclear Plant, Units 1, 2, and 3 Renewed Facility Operating License Nos. DPR-33, DPR-52, and DPR-68 NRC Docket Nos. 50-259, 50-260, and 50-296 Sequoyah Nuclear Plant, Units 1 and 2 Renewed Facility Operating License Nos. DPR-77 and DPR-79 NRC Docket Nos. 50-327 and 50-328 Watts Bar Nuclear Plant, Units 1 and 2 Facility Operating License Nos. NPF-90 and NPF-96 NRC Docket Nos. 50-390 and 50-391

Subject:

Decommissioning Funding Status Report

References:

1. TVA letter to NRC, CNL-17-021, Decommissioning Funding Status Report, dated March 30, 2017 (ML17090A189)

2. TVA letter to NRC, CNL-15-189, Decommissioning Funding Update, dated September 10, 2015 (ML15253A867)

In accordance with the requirements of 10 CFR 50.75(f)(1), Tennessee Valley Authority (TVA) is reporting on the status of decommissioning funding for Browns Ferry Nuclear Plant (BFN),

Units 1, 2, and 3; Sequoyah Nuclear Plant (SQN), Units 1 and 2; and Watts Bar Nuclear Plant (WBN), Units 1 and 2. The reporting requirements and corresponding TVA information follow.

1. The amount of decommissioning funds estimated to be required pursuant to 10 CFR 50.75(b) and (c):

Decommissioning cost estimates were calculated using the formulas provided in NUREG-1307, Revision 17, Report on Waste Burial Charges, utilizing the waste burial adjustment factors for Generators Located in the Unaffiliated States and those Located in Compact-Affiliated States having no Disposal Facility. Bureau of Labor Statistics indices for the end of the 2018 calendar year were taken from the sources referenced by NUREG-1307. The calculated estimates for the end of calendar year (CY) 2018 are

U.S. Nuclear Regulatory Commission CNL-19-008 Page 2 March 26, 2019 provided in Table 1. The dollar amounts shown in Table 1 have been rounded to the nearest hundred thousand dollars.

Table 1. Decommissioning Cost Estimates for end of CY 2018 Number Cost per Unit Total Plant Cost Plant of Units ($, in millions) ($, in millions)

BFN 3 671.1 2,013.3 SQN 2 508.0 1,015.9 WBN 2 508.0 1,015.9

2. The amount accumulated in the TVA decommissioning fund at the end of the calendar year 2018 for the items included in 10 CFR 50.75(b) and (c):

TVAs decommissioning fund balances for each of the seven units at the end of CY 2018 are provided in Table 2. The dollar amounts shown in Table 2 have been rounded to the nearest dollar.

Table 2. Decommissioning Trust Fund Balances Decommissioning Fund Balance Plant, Unit

($)

BFN, Unit 1 382,129,027 BFN, Unit 2 372,441,358 BFN, Unit 3 337,644,437 SQN, Unit 1 211,311,189 SQN, Unit 2 201,304,966 WBN, Unit 1 267,806,997 WBN, Unit 2 101,186,523

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

TVA has established a method to provide funding assurance on an ongoing basis. This method establishes a projection of necessary funds at the end of each calendar year based upon current decommissioning cost estimates and assumptions regarding escalation and rate of earnings. Each year, TVA reviews the performance of its decommissioning trust fund. If funds fall below an established threshold of 95 percent of projected trust fund balances, TVA will make contributions to the trust fund or provide other methods of funding assurance to ensure adequate funding.

U.S. Nuclear Regulatory Commission CNL-19-008 Page 3 March 26, 2019 The table attached to TVAs March 30, 2017, letter (Reference 1) has been updated herein for the current calculated obligations, expressed in current dollars. This updated table is provided in the enclosure to this letter. At the end of 2018, the trust fund unit balances shown in Table 2 were greater than the respective present values of the costs to decommission each unit. Therefore, no amounts are scheduled to be collected at this time.

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:

• The assumed escalation in decommissioning costs is four percent.

• TVA assumed a projected annual real rate of return on decommissioning funds of five percent, as authorized by the TVA Board of Directors, TVAs rate-making authority.

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 licensees current method of providing financial assurance since the last submitted report:

None.

7. Any material changes to trust agreements.

None. TVAs Sixth Amendment to the TVA Master Decommissioning Trust Agreement was provided as Enclosure 1 to Reference 2.

There are no new regulatory commitments associated with this submittal. If you have any questions concerning this matter, please contact Gordon Williams at 423-751-2687.

Respectfully, Erin K. Henderson Director, Nuclear Regulatory Affairs

Enclosure:

Updated Projected Decommissioning Funding Levels for TVA Operating Units

U.S. Nuclear Regulatory Commission CNL-19-008 Page 4 March 26, 2019 cc (Enclosure):

NRC Regional Administrator - Region II NRC Senior Resident Inspector - Browns Ferry Nuclear Plant NRC Senior Resident Inspector - Sequoyah Nuclear Plant NRC Senior Resident Inspector - Watts Bar Nuclear Plant NRC Project Manager - Browns Ferry Nuclear Plant NRC Project Manager - Sequoyah Nuclear Plant NRC Project Manager - Watts Bar Nuclear Plant

ENCLOSURE Updated Projected Decommissioning Funding Levels for TVA Operating Units

Real BFN1 12-20-2033 BFN2 6-28-2034 BFN3 7-2-2036 SQN1 9-17-2040 SQN2 9-15-2041 WBN1 11-9-2035 WBN2 10-21-2055 Return Annual Projected Annual Projected Annual Projected Annual Projected Annual Projected Annual Projected Annual Projected Annual Targeted 5.0% Annual Funding Fund Annual Funding Fund Annual Funding Fund Annual Funding Fund Annual Funding Fund Annual Funding Fund Annual Funding Fund Annual Funding Fund Year Disbursement Assurance Assets Disbursement Assurance Assets Disbursement Assurance Assets Disbursement Assurance Assets Disbursement Assurance Assets Disbursement Assurance Assets Disbursement Assurance Assets Disbursement Assurance Assets 2018 $268.6 $261.8 $237.3 $146.3 $139.4 $185.4 $70.1 $1,309 2019 $0.0 $282.0 $0.0 $274.9 $0.0 $249.2 $0.0 $153.6 $0.0 $146.3 $0.0 $194.7 $0.0 $73.6 $0.0 $0 $1,374 2020 $0.0 $296.1 $0.0 $288.6 $0.0 $261.7 $0.0 $161.3 $0.0 $153.6 $0.0 $204.4 $0.0 $77.2 $0.0 $0 $1,443 2021 $0.0 $310.9 $0.0 $303.1 $0.0 $274.7 $0.0 $169.4 $0.0 $161.3 $0.0 $214.6 $0.0 $81.1 $0.0 $0 $1,515 2022 $0.0 $326.5 $0.0 $318.2 $0.0 $288.5 $0.0 $177.8 $0.0 $169.4 $0.0 $225.4 $0.0 $85.2 $0.0 $0 $1,591 2023 $0.0 $342.8 $0.0 $334.1 $0.0 $302.9 $0.0 $186.7 $0.0 $177.9 $0.0 $236.6 $0.0 $89.4 $0.0 $0 $1,670 2024 $0.0 $360.0 $0.0 $350.8 $0.0 $318.0 $0.0 $196.0 $0.0 $186.8 $0.0 $248.5 $0.0 $93.9 $0.0 $0 $1,754 2025 $0.0 $377.9 $0.0 $368.4 $0.0 $333.9 $0.0 $205.8 $0.0 $196.1 $0.0 $260.9 $0.0 $98.6 $0.0 $0 $1,842 2026 $0.0 $396.8 $0.0 $386.8 $0.0 $350.6 $0.0 $216.1 $0.0 $205.9 $0.0 $273.9 $0.0 $103.5 $0.0 $0 $1,934 2027 $0.0 $416.7 $0.0 $406.1 $0.0 $368.2 $0.0 $226.9 $0.0 $216.2 $0.0 $287.6 $0.0 $108.7 $0.0 $0 $2,030 2028 $0.0 $437.5 $0.0 $426.4 $0.0 $386.6 $0.0 $238.3 $0.0 $227.0 $0.0 $302.0 $0.0 $114.1 $0.0 $0 $2,132 2029 $0.0 $459.4 $0.0 $447.8 $0.0 $405.9 $0.0 $250.2 $0.0 $238.4 $0.0 $317.1 $0.0 $119.8 $0.0 $0 $2,239 2030 $0.0 $482.4 $0.0 $470.1 $0.0 $426.2 $0.0 $262.7 $0.0 $250.3 $0.0 $333.0 $0.0 $125.8 $0.0 $0 $2,351 2031 $0.0 $506.5 $0.0 $493.7 $0.0 $447.5 $0.0 $275.9 $0.0 $262.8 $0.0 $349.6 $0.0 $132.1 $0.0 $0 $2,468 2032 $0.0 $531.8 $0.0 $518.3 $0.0 $469.9 $0.0 $289.7 $0.0 $275.9 $0.0 $367.1 $0.0 $138.7 $0.0 $0 $2,591 2033 $0.0 $557.6 $0.0 $544.3 $0.0 $493.4 $0.0 $304.1 $0.0 $289.7 $0.0 $385.5 $0.0 $145.6 $0.0 $0 $2,720 2034 $0.0 $557.6 $0.0 $518.1 $0.0 $319.3 $0.0 $304.2 $0.0 $404.7 $0.0 $152.9 $0.0 $0 $2,257 2035 $0.0 $544.0 $0.0 $335.3 $0.0 $319.4 $0.0 $422.1 $0.0 $160.6 $0.0 $0 $1,781 2036 $113.5 $0.0 $557.6 $0.0 $352.1 $0.0 $335.4 $0.0 $168.6 $0.0 $0 $1,527 2037 $671.1 $671.1 $113.5 $0.0 $369.7 $0.0 $352.2 $0.0 $177.0 $671.1 $0 $1,683 2038 $671.1 $671.1 $0.0 $388.2 $0.0 $369.8 $85.9 $0.0 $185.9 $671.1 $0 $1,701 2039 $113.5 $0.0 $407.6 $0.0 $388.3 $508.0 $508.0 $0.0 $195.2 $508.0 $0 $1,613 2040 $671.1 $671.1 $0.0 $422.1 $0.0 $407.7 $0.0 $204.9 $671.1 $0 $1,706 2041 $0.0 $422.1 $0.0 $215.2 $0.0 $0 $637 2042 $0.0 $225.9 $0.0 $0 $226 2043 $85.9 $0.0 $237.2 $0.0 $0 $323 2044 $508.0 $508.0 $85.9 $0.0 $249.1 $508.0 $0 $843 2045 $508.0 $508.0 $0.0 $261.5 $508.0 $0 $770 2046 $0.0 $274.6 $0.0 $0 $275 2047 $0.0 $288.4 $0.0 $0 $288 2048 $0.0 $302.8 $0.0 $0 $303 2049 $0.0 $317.9 $0.0 $0 $318 2050 $0.0 $333.8 $0.0 $0 $334 2051 $0.0 $350.5 $0.0 $0 $350 2052 $0.0 $368.0 $0.0 $0 $368 2053 $0.0 $386.4 $0.0 $0 $386 2054 $0.0 $405.7 $0.0 $0 $406 2055 $0.0 $422.1 $0.0 $0 $422

$0.0

$0.0

$85.9 $0.0

$508.0 $508.0 $508.0

$0.0

$671.1 $671.1 $671.1 $508.0 $508.0 $508.0 $508.0 $4,045.3 Page 2