CNL-21-030, Decommissioning Funding Status Report

Decommissioning Funding Status Report

ML21084A814
Person / Time
Site:	Browns Ferry, Watts Bar, Sequoyah
Issue date:	03/25/2021
From:	Polickoski J Tennessee Valley Authority
To:	Document Control Desk, Office of Nuclear Reactor Regulation
References
CNL-21-030
Download: ML21084A814 (6)

Text

1101 Market Street, Chattanooga, Tennessee 37402 CNL-21-030 March 25, 2021 10 CFR 50.75(f)(2)

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-19-008, Decommissioning Funding Status Report, dated March 26, 2019 (ML19085A372)

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

In accordance with the requirements of Title 10, Code of Federal Regulations, Section 50.75(f)(2) (10 CFR 50.75(f)(2)), 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 are provided below.

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 18, Report on Waste Burial Charges: Changes in Decommissioning Waste Disposal Costs at Low-Level Waste Burial Facilities, 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 2020 calendar year (CY) were taken from the sources referenced by NUREG-1307. The calculated estimates for the end of CY 2020 are

U.S. Nuclear Regulatory Commission CNL-21-030 Page 2 March 25, 2021 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 2020 Number Cost per Unit Total Plant Cost Plant of Units ($, in millions) ($, in millions)

BFN 3 663.3 1,989.9 SQN 2 514.6 1,029.2 WBN 2 514.6 1,029.2

2. The amount accumulated in the TVA decommissioning fund at the end of the calendar year 2020 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 2020 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 1 508,548,717 BFN, Unit 2 495,656,073 BFN, Unit 3 449,347,292 SQN, Unit 1 281,219,236 SQN, Unit 2 267,902,656 WBN, Unit 1 356,405,544 WBN, Unit 2 134,662,044

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 CY 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-21-030 Page 3 March 25, 2021 The table provided in the enclosure to 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 2020, 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. The 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. Please address any questions regarding this request to Kimberly D. Hulvey, Senior Manager, Fleet Licensing, at (423) 751-3275.

Respectfully, James T. Polickoski Director, Nuclear Regulatory Affairs

Enclosure:

Updated Projected Decommissioning Funding Levels for TVA Operating Units (Through Calendar Year 2020) cc: See Page 4

U.S. Nuclear Regulatory Commission CNL-21-030 Page 4 March 25, 2021 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 (Through Calendar Year 2020)

CNL-21-030

Updated Projected Decommissioning Funding Levels for TVA Operating Units (Through Calendar Year 2020)*

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 2020 $292.7 $285.3 $258.6 $163.4 $155.6 $207.1 $78.2 $1,441 2021 $0.0 $307.3 $0.0 $299.5 $0.0 $271.5 $0.0 $171.6 $0.0 $163.4 $0.0 $217.4 $0.0 $82.2 $0.0 $0 $1,513 2022 $0.0 $322.7 $0.0 $314.5 $0.0 $285.1 $0.0 $180.1 $0.0 $171.6 $0.0 $228.3 $0.0 $86.3 $0.0 $0 $1,589 2023 $0.0 $338.8 $0.0 $330.2 $0.0 $299.4 $0.0 $189.1 $0.0 $180.2 $0.0 $239.7 $0.0 $90.6 $0.0 $0 $1,668 2024 $0.0 $355.8 $0.0 $346.8 $0.0 $314.3 $0.0 $198.6 $0.0 $189.2 $0.0 $251.7 $0.0 $95.1 $0.0 $0 $1,751 2025 $0.0 $373.6 $0.0 $364.1 $0.0 $330.1 $0.0 $208.5 $0.0 $198.6 $0.0 $264.3 $0.0 $99.9 $0.0 $0 $1,839 2026 $0.0 $392.2 $0.0 $382.3 $0.0 $346.6 $0.0 $219.0 $0.0 $208.6 $0.0 $277.5 $0.0 $104.8 $0.0 $0 $1,931 2027 $0.0 $411.8 $0.0 $401.4 $0.0 $363.9 $0.0 $229.9 $0.0 $219.0 $0.0 $291.4 $0.0 $110.1 $0.0 $0 $2,028 2028 $0.0 $432.4 $0.0 $421.5 $0.0 $382.1 $0.0 $241.4 $0.0 $230.0 $0.0 $305.9 $0.0 $115.6 $0.0 $0 $2,129 2029 $0.0 $454.1 $0.0 $442.6 $0.0 $401.2 $0.0 $253.5 $0.0 $241.5 $0.0 $321.2 $0.0 $121.4 $0.0 $0 $2,235 2030 $0.0 $476.8 $0.0 $464.7 $0.0 $421.3 $0.0 $266.1 $0.0 $253.5 $0.0 $337.3 $0.0 $127.4 $0.0 $0 $2,347 2031 $0.0 $500.6 $0.0 $487.9 $0.0 $442.3 $0.0 $279.4 $0.0 $266.2 $0.0 $354.2 $0.0 $133.8 $0.0 $0 $2,464 2032 $0.0 $525.6 $0.0 $512.3 $0.0 $464.4 $0.0 $293.4 $0.0 $279.5 $0.0 $371.9 $0.0 $140.5 $0.0 $0 $2,588 2033 $0.0 $551.1 $0.0 $537.9 $0.0 $487.7 $0.0 $308.1 $0.0 $293.5 $0.0 $390.5 $0.0 $147.5 $0.0 $0 $2,716 2034 $0.0 $551.1 $0.0 $512.0 $0.0 $323.5 $0.0 $308.2 $0.0 $410.0 $0.0 $154.9 $0.0 $0 $2,260 2035 $0.0 $537.6 $0.0 $339.7 $0.0 $323.6 $0.0 $427.6 $0.0 $162.7 $0.0 $0 $1,791 2036 $112.2 $0.0 $551.1 $0.0 $356.6 $0.0 $339.8 $0.0 $170.8 $0.0 $0 $1,530 2037 $663.3 $663.3 $112.2 $0.0 $374.5 $0.0 $356.7 $0.0 $179.3 $663.3 $0 $1,686 2038 $663.3 $663.3 $0.0 $393.2 $0.0 $374.6 $87.0 $0.0 $188.3 $663.3 $0 $1,706 2039 $112.2 $0.0 $412.9 $0.0 $393.3 $514.6 $514.6 $0.0 $197.7 $514.6 $0 $1,631 2040 $663.3 $663.3 $0.0 $427.6 $0.0 $413.0 $0.0 $207.6 $663.3 $0 $1,711 2041 $0.0 $427.6 $0.0 $218.0 $0.0 $0 $646 2042 $0.0 $228.9 $0.0 $0 $229 2043 $87.0 $0.0 $240.3 $0.0 $0 $327 2044 $514.6 $514.6 $87.0 $0.0 $252.3 $514.6 $0 $854 2045 $514.6 $514.6 $0.0 $264.9 $514.6 $0 $780 2046 $0.0 $278.2 $0.0 $0 $278 2047 $0.0 $292.1 $0.0 $0 $292 2048 $0.0 $306.7 $0.0 $0 $307 2049 $0.0 $322.0 $0.0 $0 $322 2050 $0.0 $338.1 $0.0 $0 $338 2051 $0.0 $355.1 $0.0 $0 $355 2052 $0.0 $372.8 $0.0 $0 $373 2053 $0.0 $391.4 $0.0 $0 $391 2054 $0.0 $411.0 $0.0 $0 $411 2055 $0.0 $427.6 $0.0 $0 $428

$0.0 $0

$0.0 $0

$87.0 $0.0 $0

$514.6 $514.6 $514.6 $0

$663.3 $663.3 $663.3 $514.6 $514.6 $514.6 $514.6 $4,048.3

• All Dollars in Millions CNL-21-030