CNL-23-022, Decommissioning Funding Status Report

Decommissioning Funding Status Report

ML23088A168
Person / Time
Site:	Browns Ferry, Watts Bar, Sequoyah
Issue date:	03/29/2023
From:	Hulvey K Tennessee Valley Authority
To:	Office of Nuclear Reactor Regulation, Document Control Desk
References
CNL-23-022
Download: ML23088A168 (1)

Text

1101 Market Street, Chattanooga, Tennessee 37402 CNL-23-022 March 29, 2023 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-21-030, Decommissioning Funding Status Report, dated March 25, 2021 (ML21084A814)

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 19, 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 2022 calendar year (CY) were taken from the sources referenced by NUREG-1307. The calculated estimates for the end of CY 2022 are

U.S. Nuclear Regulatory Commission CNL-23-022 Page 2 March 29, 2023 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 2022 Number Cost per Unit Total Plant Cost Plant of Units ($, in millions) ($, in millions)

BFN 3 692.9 2,078.7 SQN 2 570.3 1,140.6 WBN 2 570.3 1,140.6

2. The amount accumulated in the TVA decommissioning fund at the end of the calendar year 2022 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 2022 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 1 543,259,493 BFN, Unit 2 529,486,867 BFN, Unit 3 480,017,300 SQN, Unit 1 300,413,735 SQN, Unit 2 286,188,237 WBN, Unit 1 380,731,852 WBN, Unit 2 143,853,345

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-23-022 Page 3 March 29, 2023 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 2022, 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 submittal to Stuart Rymer, Senior Manager, Fleet Licensing, at slrymer@tva.gov.

Respectfully, Digitally signed by Edmondson, Carla Date: 2023.03.29 12:40:30

-04'00' Kimberly D. Hulvey Director, Nuclear Regulatory Affairs

Enclosure:

Updated Projected Decommissioning Funding Levels for TVA Operating Units (Through Calendar Year 2022) cc: See Page 4

U.S. Nuclear Regulatory Commission CNL-23-022 Page 4 March 29, 2023 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 2022)

CNL-23-022

Updated Projected Decommissioning Funding Levels for TVA Operating Units (Through Calendar Year 2022)*

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 Total 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 2022 $337.1 $328.6 $297.8 $199.6 $190.2 $253.0 $95.6 $0.0 $0 $1,702 2023 $0.0 $353.9 $0.0 $345.0 $0.0 $312.7 $0.0 $209.6 $0.0 $199.7 $0.0 $265.7 $0.0 $100.4 $0.0 $0 $1,787 2024 $0.0 $371.6 $0.0 $362.2 $0.0 $328.4 $0.0 $220.1 $0.0 $209.7 $0.0 $278.9 $0.0 $105.4 $0.0 $0 $1,876 2025 $0.0 $390.2 $0.0 $380.3 $0.0 $344.8 $0.0 $231.1 $0.0 $220.1 $0.0 $292.9 $0.0 $110.7 $0.0 $0 $1,970 2026 $0.0 $409.7 $0.0 $399.4 $0.0 $362.0 $0.0 $242.6 $0.0 $231.2 $0.0 $307.5 $0.0 $116.2 $0.0 $0 $2,069 2027 $0.0 $430.2 $0.0 $419.3 $0.0 $380.1 $0.0 $254.8 $0.0 $242.7 $0.0 $322.9 $0.0 $122.0 $0.0 $0 $2,172 2028 $0.0 $451.7 $0.0 $440.3 $0.0 $399.1 $0.0 $267.5 $0.0 $254.8 $0.0 $339.1 $0.0 $128.1 $0.0 $0 $2,281 2029 $0.0 $474.3 $0.0 $462.3 $0.0 $419.1 $0.0 $280.9 $0.0 $267.6 $0.0 $356.0 $0.0 $134.5 $0.0 $0 $2,395 2030 $0.0 $498.0 $0.0 $485.4 $0.0 $440.1 $0.0 $294.9 $0.0 $281.0 $0.0 $373.8 $0.0 $141.2 $0.0 $0 $2,514 2031 $0.0 $522.9 $0.0 $509.7 $0.0 $462.1 $0.0 $309.7 $0.0 $295.0 $0.0 $392.5 $0.0 $148.3 $0.0 $0 $2,640 2032 $0.0 $549.1 $0.0 $535.2 $0.0 $485.2 $0.0 $325.2 $0.0 $309.8 $0.0 $412.1 $0.0 $155.7 $0.0 $0 $2,772 2033 $0.0 $575.7 $0.0 $561.9 $0.0 $509.4 $0.0 $341.4 $0.0 $325.3 $0.0 $432.7 $0.0 $163.5 $0.0 $0 $2,910 2034 $0.0 $575.7 $0.0 $534.9 $0.0 $358.5 $0.0 $341.5 $0.0 $454.4 $0.0 $171.7 $0.0 $0 $2,437 2035 $0.0 $561.6 $0.0 $376.4 $0.0 $358.6 $0.0 $473.8 $0.0 $180.3 $0.0 $0 $1,951 2036 $117.2 $0.0 $575.7 $0.0 $395.3 $0.0 $376.5 $0.0 $189.3 $0.0 $0 $1,654 2037 $692.9 $692.9 $117.2 $0.0 $415.0 $0.0 $395.4 $0.0 $198.7 $692.9 $0 $1,819 2038 $692.9 $692.9 $0.0 $435.8 $0.0 $415.1 $96.5 $0.0 $208.7 $692.9 $0 $1,849 2039 $117.2 $0.0 $457.6 $0.0 $435.9 $570.3 $570.3 $0.0 $219.1 $570.3 $0 $1,800 2040 $692.9 $692.9 $0.0 $473.8 $0.0 $457.7 $0.0 $230.1 $692.9 $0 $1,854 2041 $0.0 $473.8 $0.0 $241.6 $0.0 $0 $715 2042 $0.0 $253.6 $0.0 $0 $254 2043 $96.5 $0.0 $266.3 $0.0 $0 $363 2044 $570.3 $570.3 $96.5 $0.0 $279.6 $570.3 $0 $946 2045 $570.3 $570.3 $0.0 $293.6 $570.3 $0 $864 2046 $0.0 $308.3 $0.0 $0 $308 2047 $0.0 $323.7 $0.0 $0 $324 2048 $0.0 $339.9 $0.0 $0 $340 2049 $0.0 $356.9 $0.0 $0 $357 2050 $0.0 $374.7 $0.0 $0 $375 2051 $0.0 $393.5 $0.0 $0 $393 2052 $0.0 $413.2 $0.0 $0 $413 2053 $0.0 $433.8 $0.0 $0 $434 2054 $0.0 $455.5 $0.0 $0 $456 2055 $0.0 $473.8 $0.0 $0 $474

$0.0 $0

$0.0 $0

$96.5 $0.0 $0

$570.3 $570.3 $570.3 $0

$692.9 $692.9 $692.9 $570.3 $570.3 $570.3 $570.3 $4,359.9

• All Dollars in millions CNL-23-022