ENOC-07-00007, Status of Decommissioning Funding for Year Ending December 31. 2006 - 10 CFR 50.75(f)(1)

Status of Decommissioning Funding for Year Ending December 31. 2006 - 10 CFR 50.75(f)(1)

ML070950209
Person / Time
Site:	Indian Point, Pilgrim, Vermont Yankee, FitzPatrick
Issue date:	03/29/2007
From:	Herron J Entergy Nuclear Northeast, Entergy Nuclear Operations
To:	Document Control Desk, NRC/FSME
References
ENOC-07-00007, FOIA/PA-2013-0151
Download: ML070950209 (10)

Text

Entergy Nuclear Operations, Inc.

Entergy Nuclear Northeast 440 Hamilton Avenue SEntergy White Plains, NY 10601 Tel 914 272 3204 Fax 914 272 3205 jherron@entergy.corn John T. Herron Senior Vice President and Chief Operating Officer March 29, 2007 ENOC-07-00007 U. S. Nuclear Regulatory Commission ATTN: Document Control Desk Washington, DC 20555

SUBJECT:

Entergy Nuclear Operations, Inc.

Indian Point Nuclear Generating Stations 1, 2 and 3 Docket Nos. 50-3, 50-247 and 50-286 Vermont Yankee Nuclear Power Station Docket No. 50-271 Pilgrim Nuclear Power Station Docket No. 50-293 James A. FitzPatrick Nuclear Power Plant Docket No. 50-333 Status of Decommissioning Funding for Plants Operated by Entergy Nuclear Operations, Inc.

For Year Ending December 31. 2006 - 10 CFR 50.75(f)(1)

References:

1. NUREG-1307, "Report on Waste Burial Charges," Revision 12, dated February 2007.

2. NRC Regulatory Issue Summary 2001-07, "10 CFR 50.75(f)(1)

Reports on the Status of Decommissioning Funds (Due March 31, 2001)."

Dear Sir or Madam:

10 CFR 50.75(f)(1) requires each power reactor licensee to report to the NRC by March 31, 1999, and every two years thereafter, on the status of its decommissioning funding for each reactor, or share of a reactor, that it owns. On behalf of Entergy Nuclear Indian Point 2 LLC, Entergy Nuclear Indian Point 3 LLC, Entergy Nuclear Vermont Yankee LLC, Entergy Nuclear Generation Company (Pilgrim Station), and Entergy Nuclear FitzPatrick LLC, Entergy Nuclear Operations, Inc. hereby submits the information requested for power reactors operated by Entergy Nuclear Operations, Inc.

The estimated minimum decommissioning fund values were determined using the NRC's methodology in NUREG-1307 (Reference 1).

/J 50/

400(

The information provided in Attachment 1 is based on NRC Regulatory Issue Summary 2001-07 (Reference 2).

There are no new commitments made in this letter. If you have any questions, please contact Ms. Charlene Faison at 914-272-3378.

Very truly yours, o'oIn T. Herron ehio r Vice President

-ntergy Nuclear Operations Attachments:

1. Status of Decommissioning Funding for Plants Operated by Entergy Nuclear Operations, Inc. (Indian Point 1, Indian Point 2, Indian Point 3, Vermont Yankee, Pilgrim, and FitzPatrick) for Year Ending December 31, 2006 - 10 CFR 50.75(f)(1) - (7 sheets) cc: Next page.

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cc: all w/attachments USNRC Regional Administrator, Region I USNRC Project Manager, Indian Point 1 USNRC Project Manager, Indian Point 2 USNRC Project Manager, Indian Point 3 USNRC Project Manager, FitzPatrick USNRC Project Manager, Vermont Yankee USNRC Project Manager, Pilgrim USNRC Resident Inspector, Indian Point 2 USNRC Resident Inspector, Indian Point 3 USNRC Resident Inspector, FitzPatrick USNRC Resident Inspector, Vermont Yankee USNRC Resident Inspector, Pilgrim Mr. David O'Brien, Commissioner Department of Public Service 120 State Street - Drawer 20 Montpelier, VT 05602 Mr. Paul Eddy NYS Department of Public Service 3 Empire State Plaza Albany, NY 12223 Ms. Victoria J. Brown, Esq.

Primmer Piper Eggleston & Cramer PC 150 S. Champlain Street P.O. Box 1489 Burlington, VT 05402 3

Attachment 1 to ENOC-07-00007 Status of Decommissioning Funding for Plants Operated by Entergy Nuclear Operations, Inc. (Indian Point 1, Indian Point 2, Indian Point 3, Vermont Yankee, Pilgrim, and FitzPatrick) for Year Ending December 31, 2006 - 10 CFR 50.75(f)(1)

Plant Name: Indian Point Nuclear Generating Unit No. 1

1. Amount of decommissioning funds estimated $ 308.44million [1]

to be required pursuant to 10 CFR 50.75 (b) and (c).

Decommissioning cost estimate escalated at $ 414.52 million 3.0% per year to the midpoint of decommissioning (December 2016).

2. Amount accumulated to the end of the $ 254.24 million [2]

calendar year preceding the date of the report (December 31, 2006).

Fund balance with 5.0% annual growth to the $ 414.13 million midpoint of decommissioning (December 2016).

3. A schedule of the annual amounts remaining None.

to be collected.

4. Assumptions used in determining rates of Escalation rate: 3.0%

escalation in decommissioning costs, rates of earnings on decommissioning funds, and rates Rate of earnings: 5.0%

of other factors used in funding projections.

5. Any contracts upon which the licensee is None.

relying pursuant to 10 CFR 50.75(e)(1 )(v).

,6. Modifications occurring to a licensee's current None.

method of providing financial assurance since the last submitted report.

7. Any material changes to trust agreements. None.

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Attachment 1 to ENOC-07-00007 Status of Decommissioning Funding for Plants Operated by Entergy Nuclear Operations, Inc. (Indian Point 1, Indian Point 2, Indian Point 3, Vermont Yankee, Pilgrim, and FitzPatrick) for Year Ending December 31. 2006 - 10 CFR 50.75(f)(1)

Plant Name: Indian Point Nuclear Generating Unit No. 2

1. Amount of decommissioning funds estimated $ 372.40 million to be required pursuant to 10 CFR 50.75 (b) and (c).

Decommissioning cost estimate escalated at $ 500.47 million 3.0% per year to the midpoint of decommissioning (December 2016).

2. Amount accumulated to the end of the $ 303.01 million 12]

calendar year preceding the date of the report (December 31, 2006).

Fund balance with 5.0% annual growth to the $ 493.57 million midpoint of decommissioning (December 2016).

3. A schedule of the annual amounts remaining None.

to be collected.

4. Assumptions used in determining rates of Escalation rate: 3.0%

escalation in decommissioning costs, rates of earnings on decommissioning funds, and rates Rate of earnings: 5.0%

of other factors used in funding projections.

5. Any contracts upon which the licensee is None.

relying pursuant to 10 CFR 50.75(e)(1 )(v).

6. Modifications occurring to a licensee's current None.

method of providing financial assurance since the last submitted report.

7. Any material changes to trust agreements. None.

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Attachment 1 to ENOC-07-00007 Status of Decommissioning Funding for Plants Operated by Entergy Nuclear Operations, Inc. (Indian Point 1, Indian Point 2, Indian Point 3, Vermont Yankee, Pilgrim, and FitzPatrick) for Year Ending December 31, 2006 - 10 CFR 50.75(f)(1)

Plant Name: Indian Point Nuclear Generating Unit No. 3

1. Amount of decommissioning funds estimated $ 367.69 million to be required pursuant to 10 CFR 50.75 (b) and (c).

Decommissioning cost estimate escalated at $ 524.24 million 3.0% per year to the midpoint of decommissioning (December 2018).

2. Amount accumulated to the end of the $ 441.30 million calendar year preceding the date of the report (December 31, 2006).

Fund balance with 5.0% annual growth to the $ 792.51 million midpoint of decommissioning (December 2018).

3. A schedule of the annual amounts remaining None.

to be collected.

4. Assumptions used in determining rates of Escalation rate: 3.0%

escalation in decommissioning costs, rates of earnings on decommissioning funds, and rates Rate of earnings: 5.0%

of other factors used in funding projections.

5. Any contracts upon which the licensee is None.

relying pursuant to 10 CFR 50.75(e)(1)(v).

6. Modifications occurring to a licensee's current None.

method of providing financial assurance since the last submitted report.

7. Any material changes to trust agreements. None.

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Attachment 1 to ENOC-07-00007 Status of Decommissioning Funding for Plants Operated by Entergy Nuclear Operations, Inc. (Indian Point 1, Indian Point 2, Indian Point 3, Vermont Yankee, Pilgrim, and FitzPatrick) for Year Ending December 31, 2006 - 10 CFR 50.75(f)(1)

Plant Name: Vermont Yankee Nuclear Power Station

1. Amount of decommissioning funds estimated $ 478.17 million to be required pursuant to 10 CFR 50.75 (b) and (c).

Decommissioning cost estimate escalated at $ 623.90 million 3.0% per year to the midpoint of decommissioning (December 2015).

2. Amount accumulated to the end of the $ 416.54 million calendar year preceding the date of the report (December 31, 2006).

Fund balance with 5.0% annual growth to the $ 646.19 million midpoint of decommissioning (December 2015).

3. A schedule of the annual amounts remaining None.

to be collected.

4. Assumptions used in determining rates of Escalation rate: 3.0%

escalation in decommissioning costs, rates of earnings on decommissioning funds, and rates Rate of earnings: 5.0%

of other factors used in funding projections.

5. Any contracts upon which the licensee is None.

relying pursuant to 10 CFR 50.75(e)(1)(v).

6. Modifications occurring to a licensee's current None.

method of providing financial assurance since the last submitted report.

7. Any material changes to trust agreements. None.

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Attachment 1 to ENOC-07-00007 Status of Decommissioning Funding for Plants Operated by Entergy Nuclear Operations, Inc. (Indian Point 1, Indian Point 2, Indian Point 3, Vermont Yankee, Pilgrim, and FitzPatrick) for Year Ending December 31. 2006 - 10 CFR 50.75(f)(1)

Plant Name: Pilgrim Nuclear Power Station

1. Amount of decommissioning funds estimated $ 482.28 million to be required pursuant to 10 CFR 50.75 (b) and (c).

Decommissioning cost estimate escalated at $ 629.27 million 3.0% per year to the midpoint of decommissioning (December 2015).

2. Amount accumulated to the end of the $ 582.63 million calendar year preceding the date of the report (December 31, 2006).

Fund balance with 5.0% annual growth to the $ 903.85 million midpoint of decommissioning (December 2015).

3. A schedule of the annual amounts remaining None.

to be collected.

4. Assumptions used in determining rates of Escalation rate: 3.0%

escalation in decommissioning costs, rates of earnings on decommissioning funds, and rates Rate of earnings: 5.0%

of other factors used in funding projections.

5. Any contracts upon which the licensee is None.

relying pursuant to 10 CFR 50.75(e)(1)(v).

6. Modifications occurring to a licensee's current None.

method of providing financial assurance since the last submitted report.

7. Any material changes to trust agreements. Effective December 16, 2005 the Entergy Nuclear Generation Company Master Decommissioning Trust Agreement for the Pilgrim Nuclear Power Station was amended to reflect the changing of the Entergy Nuclear Generation Company from a Delaware corporation to a Massachusetts corporation.

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Attachment 1 to ENOC-07-00007 Status of Decommissioning Funding for Plants Operated by Entergy Nuclear Operations, Inc. (Indian Point 1, Indian Point 2, Indian Point 3, Vermont Yankee, Pilgrim, and FitzPatrick) for Year Ending December 31, 2006 - 10 CFR 50.75(f)(1)

Plant Name: James A. Fitzpatrick Nuclear Power Plant

1. Amount of decommissioning funds estimated $ 500.32 million to be required pursuant to 10 CFR 50.75 (b) and (c).

Decommissioning cost estimate escalated at $ 692.56 million 3.0% per year to the midpoint of decommissioning (December 2017).

2. Amount accumulated to the end of the $ 481.50 million calendar year preceding the date of the report (December 31, 2006).

Fund balance with 5.0% annual growth to the $ 823.53 million midpoint of decommissioning (December 2017).

3. A schedule of the annual amounts remaining None.

to be collected.

4. Assumptions used in determining rates of Escalation rate: 3.0%

escalation in decommissioning costs, rates of earnings on decommissioning funds, and rates Rate of earnings: 5.0%

of other factors used in funding projections.

5. Any contracts upon which the licensee is None.

relying pursuant to 10 CFR 50.75(e)(1)(v).

6. Modifications occurring to a licensee's current None.

method of providing financial assurance since the last submitted report.

7. Any material changes to trust agreements. None.

6

Attachment 1 to ENOC-07-00007 Status of Decommissioning Funding for Plants Operated by Entergy Nuclear Operations, Inc. (Indian Point 1, Indian Point 2, Indian Point 3, Vermont Yankee, Pilgrim, and FitzPatrick) for Year Ending December 31, 2006 - 10 CFR 50.75(f)(1)

Notes:

[1] In accordance with 10 CFR 50.75(c)(i)(1) PWR reactors below 1200 MWt are to use this minimum value. Indian Point 1 had a thermal power level of 615 MWt. (Refer to Attachment 3, pg. 15, of June 8, 2001 letter, M. R. Kansler to USNRC regarding "Response to June 5, 2001 Letter, Indian Point Nuclear Generating Unit Nos. 1 and 2, Transfer of Facility Operating License (TAC Nos. MB0743 and MB0744).")

[2] The current fund balances for Indian Point 1 and 2 do not include an additional $27.43 million available in the provisional fund.

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