ENOC-11-00005, Status of Decommissioning Funding for Plants Operated by Entergy Nuclear Operations, Inc., for Year Ending December 31, 2010 - 10 CFR 50.75(f)(1)

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Status of Decommissioning Funding for Plants Operated by Entergy Nuclear Operations, Inc., for Year Ending December 31, 2010 - 10 CFR 50.75(f)(1)
ML110940051
Person / Time
Site: Palisades, Indian Point, Pilgrim, Vermont Yankee, Big Rock Point, FitzPatrick  Entergy icon.png
Issue date: 03/31/2011
From: Mccann J
Entergy Nuclear Operations
To:
Document Control Desk, Office of Nuclear Reactor Regulation, NRC/FSME
References
ENOC-11-00005, NUREG-1307, Rev 14, FOIA/PA-2013-0151
Download: ML110940051 (32)
v • d • e


Text

En tergy Entergy Nuclear Operations, Inc.

440 Hamilton Avenue White Plains, NY 10601 Tel: 914-272-3370 John F. McCann Vice President, Nuclear Safety, Emergency Planning and Licensing March 31, 2011 ENOC-1 1-0005 U. S. Nuclear Regulatory Commission ATTN: Document Control Desk Washington, DC 20555

SUBJECT:

Status of Decommissioning Funding for Plants Operated by Entergy Nuclear Operations, Inc.

For Year Ending December 31, 2010 - 10 CFR 50.75(f)(1)

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 Palisades Nuclear Plant Docket No. 50-255 Big Rock Point Docket 50-155

REFERENCES:

1.

NUREG-1307, "Report on Waste Burial Charges,"

November 2010.

Revision 14, dated

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), Entergy Nuclear FitzPatrick LLC, and Entergy Nuclear Palisades LLC (Palisades and Big Rock Point), Entergy Nuclear Operations, Inc.

hereby submits the information requested for power reactors operated by Entergy Nuclear Operations, Inc. The reports, provided in Attachments 1 through 13, respectively, for the six

ENOC-l 1-0005 listed plants, were prepared in accordance with NUREG-1307 (Reference 1) and NRC Regulatory Issue Summary 2001-07 (Reference 2). Attachments 14 and 15 are updated site specific decommissioning cost estimates for IP 1 and 2. Attachment 16 includes Minimum Funding Assurance calculation worksheets for the plants (derived from LIC-205 Revision 4),

provided for the convenience of the reviewer.

The aforementioned worksheets, using the December 31, 2010 trust fund balances and parent guarantee amounts, indicate that all of the plants covered by this submittal met or exceeded the NRC's funding requirements, except that Palisades was just under one percent below the requirement. Since December 31, 2010, the Palisades' decommissioning trust fund has experienced an increase (as have the available funds for all the plants in this submittal).

Entergy Nuclear Operations, Inc. has recomputed the financial assurance for Palisades using the most recent month end and available balance information, i.e., for February 28, 2011, and provided a revised calculation worksheet for Palisades. The revised worksheet is included in 6, behind the worksheet for the December 31, 2010 balance for Palisades, indicating a March 1, 2011 date for the analysis (also removing two months from the escalation calculations). The revised worksheet indicates that the currently-available financial assurance for Palisades now exceeds the NRC's funding requirements. Accordingly, the licensee concludes that no further action is required at this time to demonstrate adequate funding assurance for decommissioning Palisades.

On March 21, 2011, the NRC issued a renewed operating license for Vermont Yankee (ML092110050), authorizing operation of that plant for an additional twenty years. As a result of this renewed license, Entergy Nuclear Operations, Inc. has calculated that Vermont Yankee now has an approximately $211 million surplus over the NRC's minimum amount for financial assurance for decommissioning, rendering the existing parent company guarantee for additional financial assurance in the amount of $40 million for that plant no longer necessary. Accordingly, Entergy Nuclear Operations, Inc. intends to take the necessary steps to cancel the aforementioned parent company guarantee.

There are no new commitments made in this letter. If you have any questions, please contact Mr. Bryan Ford at 601-368-5516.

Sincerely, JFM/CDF/LAE Attachments: As described above cc: See next page.

2

ENOC-1 1-0005 cc: All Below with Attachments Mr. J. A. Aluise (ENT)

Mr. M. A. Balduzzi (WPO)

Mr. K. H. Bronson (JAF)

Mr. M. J. Colomb (EVY)

Ms. W. C. Curry (ECH)

Mr. T. P. Kirwin (PLP)

Mr. J. F. McCann (WPO)

Mr. J. E. Pollock (IPEC)

Mr. L. Jager Smith (Wise, Carter)

Mr. R. G. Smith (PNP)

USNRC Regional Administrator, Region I USNRC Regional Administrator, Region III 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 Project Manager, Palisades USNRC Project Manager, Big Rock Point 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 USNRC Resident Inspector, Palisades Michigan Department of Environmental Quality Michigan Public Service Commission Ms. Elizabeth Miller, 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

ENOC-1 1-0005 Entergy Nuclear Operations, Inc.

Status of Decommissioning Funding - Indian Point 1 For Year Endinq December 31, 2010 - 10 CFR 50.75(f)(1)

Plant Name: Indian Point Nuclear Generating Unit No. 1

1. Minimum Financial Assurance (MFA) estimated per 10 CFR 50.75(b) and (c) (2010$)
2. Decommissioning Trust Fund Total as of 12/31/10.
3.

A schedule of the annual amounts remaining to be collected

4.

Assumptions used in determining rates of escalation in decommissioning costs, rates of earnings on decommissioning funds, and rates of other factors used in funding projections

5.

Any contracts upon which the licensee is relying pursuant to 10 CFR 50.75(e)(1)(v)

6.

Modifications occurring to a licensee's current method of providing financial assurance since the last submitted report

7.

Any material changes to trust agreements

$ 464.84 million

[Note]

$ 286.86 million None 2% annual real rate of return per 10 CFR 50.75(e)(1)(i)

None None None Note: This amount is based upon total SAFSTOR expenditures set forth in the updated Decommissioning Funding Assurance Plan and SAFSTOR analysis that are provided in 4. (Calculation of the NRC Minimum Amount is provided in Attachment 4.)

1 ENOC-1 1-0005 Entergy Nuclear Operations, Inc.

Status of Decommissioning Funding - Indian Point 2 For Year Ending December 31, 2010 - 10 CFR 50.75(f)(1)

Plant Name: Indian Point Nuclear Generating Unit No. 2

1. Minimum Financial Assurance (MFA) estimated per 10 CFR 50.75(b) and (c) (2010$)
2. Decommissioning Trust Fund Total as of 12/31/10
3.

A schedule of the annual amounts remaining to be collected

4.

Assumptions used in determining rates of escalation in decommissioning costs, rates of earnings on decommissioning funds, and rates of other factors used in funding projections

5.

Any contracts upon which the licensee is relying pursuant to 10 CFR 50.75(e)(1)(v)

6.

Modifications occurring to a licensee's current method of providing financial assurance since the last submitted report

7.

Any material changes to trust agreements

$ 696.20 million

[Note 1]

$ 374.74 million

[Note 2]

None 2% annual real rate of return per 10 CFR 50.75(e)(1)(i)

None None None Note 1 :This amount is based upon total SAFSTOR expenditures set forth in the updated Decommissioning Funding Assurance Plan and SAFSTOR analysis provided in 5. (Calculation of the NRC Minimum Amount is provided in Attachment 4.)

Note 2:lncludes provisional fund balance of $30.11 million.

2 ENOC-1 1-0005 Entergy Nuclear Operations, Inc.

Status of Decommissioning Funding - Indian Point 3 For Year Endinq December 31. 2010 - 10 CFR 50.75(f)(1)

Plant Name: Indian Point Nuclear Generating Unit No. 3

1. Minimum Financial Assurance (MFA) estimated per 10 CFR 50.75(b) and (c) (2010$)
2. Decommissioning Trust Fund Total as of 12/31/10
3.

A schedule of the annual amounts remaining to be collected

4.

Assumptions used in determining rates of escalation in decommissioning costs, rates of earnings on decommissioning funds, and rates of other factors used in funding projections

5.

Any contracts upon which the licensee is relying pursuant to 10 CFR 50.75(e)(1)(v)

6.

Modifications occurring to a licensee's current method of providing financial assurance since the last submitted report

7.

Any material changes to trust agreements

$ 474.22 million

[Note]

$ 493.33 million None 2% annual real rate of return per 10 CFR 50.75(e)(1)(i)

None None None Note: Calculation of the NRC Minimum Amount is provided in Attachment 4.

3 ENOC-1 1-0005 Entergy Nuclear Operations, Inc.

Calculation of Minimum Amount - Indian Point For Year Ending December 31, 2010 - 10 CFR 50.75(f)(1)

Entergy Nuclear Indian Point 2, LLC: 100% ownership interest of Indian Point 1 & 2 Entergy Nuclear Indian Point 3, LLC: 100% ownership interest of Indian Point 3 Plant Location: Buchanan, New York Reactor Type: Pressurized Water Reactor ("PWR")

Indian Point Unit 1 Power Level: <3,400 MWt (615 MWt)

Indian Point Unit 1 PWR Base Year 1986$: $85,560,000 Indian Point Unit 2 Power Level: <3,400 MWt (3,216 MWt)

Indian Point Unit 2 PWR Base Year 1986$: $103,300,800 Indian Point Unit 3 Power Level: <3,400 MWt (3,216 MWt)

Indian Point Unit 3 PWR Base Year 1986$: $103,300,800 Labor Region: North Waste Burial Facility: Generic Disposal Site 10CFR50.75(c)(2) Escalation Factor Formula:

0.65(L) +0.13(E) +0.22(B)

L=Labor (North)

E=Energy (PWR)

B=Waste Burial-Vendor (PWR)

PWR Escalation Factor:

0.65(L) +0.13(E) +0.22(B)=

1986 PWR Base Year $ Escalated:

Indian Point 1: $85,560,000

  • Factor=

Indian Point 2 & 3: $103,300,800

  • Factor=

Factor 2.45' 2.2632 12.283 4.590710

$392,781ý2M

$474,224.M 1

2 3

Bureau of Labor Statistics, Series Report ID: CIU2010000000210i (4th Quarter 2010)

Bureau of Labor Statistics, Series Report ID: wpu0543 and wpu0573 (December 2010)

Nuclear Regulatory Commission: NUREG-1307 Revision 14, Table 2.1 (2010) 4 ENOC-1 1-0005 Entergy Nuclear Operations, Inc.

Status of Decommissioning Funding Vermont Yankee For Year Ending December 31, 2010 - 10 CFR 50.75(f)(1)

Plant Name: Vermont Yankee Nuclear Power Station

1. Minimum Financial Assurance (MFA) estimated per 10 CFR 50.75(b) and (c) (2010$)
2. Decommissioning Trust Fund Total as of 12/31/10
3.

A schedule of the annual amounts remaining to be collected

4.

Assumptions used in determining rates of escalation in decommissioning costs, rates of earnings on decommissioning funds, and rates of other factors used in funding projections

5.

Any contracts upon which the licensee is relying pursuant to 10 CFR 50.75(e)(1)(v)

6.

Modifications occurring to a licensee's current method of providing financial assurance since the last submitted report

7.

Any material changes to trust agreements

$ 564.25 million [Note 1]

$ 474.22 million [Note 2]

None 2% annual real rate of return per 10 CFR 50.75(e)(1)(i)

None See Note 3 None Note 1: Calculation of the NRC Minimum Amount is provided in Attachment 6.

Note 2:Does not include the Parent Guarantee amount as indicated in Note 3.

Note 3:A $40 million Parent Guarantee is in place.

5 ENOC-1 1-0005 Entergy Nuclear Operations, Inc.

Calculation of Minimum Amount - Vermont Yankee For Year Ending December 31, 2010 - 10 CFR 50.75(f)(1)

Entergy Nuclear Vermont Yankee LLC.: 100% ownership interest Plant Location: Vernon, Vermont Reactor Type: Boiling Water Reactor ("BWR")

Power Level: <3,400 MWt (1912 MWt)

BWR Base Year 1986$: $121,208,000 Labor Region: North Waste Burial Facility: Generic Disposal Site 10CFR50.75(c)(2) Escalation Factor Formula:

0.65(L) +0.13(E) +0.22(B)

L=Labor (North)

E=Energy (BWR)

B=Waste Burial-Vendor (BWR)

BWR Escalation Factor:

0.65(L) +0.13(E) +0.22(B)=

1986 BWR Base Year $ Escalated:

$121,208,000

  • Factor=

Factor 2.451 2.3192 12.543 4.655187

$564,245,876 1

2 3

Bureau of Labor Statistics, Series Report ID: CIU2010000000210i (4 th Quarter 2010)

Bureau of Labor Statistics, Series Report ID: wpu0543 and wpu0573 (December 2010)

Nuclear Regulatory Commission: NUREG-1307 Revision 14, Table 2.1 (2010) 6 ENOC-1 1-0005 Entergy Nuclear Operations, Inc.

Status of Decommissioning Funding - Pilgrim For Year Ending December 31. 2010 - 10 CFR 50.75(f)(1)

Plant Name: Pilgrim Nuclear Power Station

1. Minimum Financial Assurance (MFA) estimated per 10 CFR 50.75(b) and (c) (2010$)
3. Decommissioning Trust Fund Total as of 12/31/10
3.

A schedule of the annual amounts remaining to be collected

4.

Assumptions used in determining rates of escalation in decommissioning costs, rates of earnings on decommissioning funds, and rates of other factors used in funding projections

5.

Any contracts upon which the licensee is relying pursuant to 10 CFR 50.75(e)(1)(v)

6.

Modifications occurring to a licensee's current method of providing financial assurance since the last submitted report

7.

Any material changes to trust agreements

$ 569.11 million [Note]

$ 645.92 million None 2% annual real rate of return per 10 CFR 50.75(e)(1)(i)

None None None Note: Calculation of the NRC Minimum Amount is provided in Attachment 8.

7 ENOC-1 1-0005 Entergy Nuclear Operations, Inc.

Calculation of Minimum Amount - Pilgrim For Year Ending December 31, 2010- 10 CFR 50.75(f)(1)

Entergy Nuclear Generation Co.: 100% ownership interest Plant Location: Plymouth, Massachussetts Reactor Type: Boiling Water Reactor ("BWR")

Power Level: <3,400 MWt (2028 MWt)

BWR Base Year 1986$: $122,252,000 Labor Region: North Waste Burial Facility: Generic Disposal Site 10CFR50.75(c)(2) Escalation Factor Formula:

0.65(L) +0.13(E) +0.22(B)

L=Labor (North)

E=Energy (BWR)

B=Waste Burial-Vendor (BWR)

BWR Escalation Factor:

0.65(L) +0.13(E) +0.22(B)=

1986 BWR Base Year $ Escalated:

$122,252,000

  • Factor=

Factor 2.451 2.3192 12.543 4.655187

$569,105,891 1

2 3

Bureau of Labor Statistics, Series Report ID: CIU2010000000210i (4 th Quarter 2010)

Bureau of Labor Statistics, Series Report ID: wpu0543 and wpu0573 (December 2010)

Nuclear Regulatory Commission: NUREG-1307 Revision 14, Table 2.1 (2010) 8 ENOC-1 1-0005 Entergy Nuclear Operations, Inc.

Status of Decommissioning Funding - James A. Fitzpatrick For Year Ending December 31, 2010 - 10 CFR 50.75(f)(1)

Plant Name: James A. Fitzpatrick Nuclear Power Plant

1. Minimum Financial Assurance (MFA) estimated per 10 CFR 50.75(b) and (c) (2010$)
2. Decommissioning Trust Fund Total as of 12/31/10
3.

A schedule of the annual amounts remaining to be collected

4.

Assumptions used in determining rates of escalation in decommissioning costs, rates of earnings on decommissioning funds, and rates of other factors used in funding projections

5.

Any contracts upon which the licensee is relying pursuant to 10 CFR 50.75(e)(1)(v)

6.

Modifications occurring to a licensee's current method of providing financial assurance since the last submitted report

7.

Any material changes to trust agreements

$ 590.39 million [Note]

$ 538.31 million None 2% annual real rate of return per 10 CFR 50.75(e)(1)(i)

None None None Note: Calculation of the NRC Minimum Amount is provided in Attachment 10.

9 0

ENOC-1 1-0005 Entergy Nuclear Operations, Inc.

Calculation of Minimum Amount - James A. Fitzpatrick For Year Endina December 31, 2010 - 10 CFR 50.75(f)(1)

Entergy Nuclear FitzPatrick LLC.: 100% ownership interest Plant Location: Oswego, New York Reactor Type: Boiling Water Reactor ("BWR")

Power Level: <3,400 MWt (2536 MWt)

BWR Base Year 1986$: $126,824,000 Labor Region: North Waste Burial Facility: Generic Disposal Site 10CFR50.75(c)(2) Escalation Factor Formula:

0.65(L) +0.13(E) +0.22(B)

L=Labor (North)

E=Energy (BWR)

B=Waste Burial-Vendor (BWR)

BWR Escalation Factor:

0.65(L) +0.13(E) +0.22(B)=

1986 BWR Base Year $ Escalated:

$126,824,000

  • Factor=

Factor 2.451 2.3192 12.543 4.655187

$590,389,405 1

2 3

Bureau of Labor Statistics, Series Report ID: CIU2010000000210i (4 th Quarter 2010)

Bureau of Labor Statistics, Series Report ID: wpu0543 and wpu0573 (December 2010)

Nuclear Regulatory Commission: NUREG-1 307 Revision 14, Table 2.1 (2010) 10 1

ENOC-1 1-0005 Entergy Nuclear Operations, Inc.

Status of Decommissioning Funding - Palisades For Year Ending December 31, 2010 - 10 CFR 50.75(f)(1)

Plant Name: Palisades Nuclear Plant

1. Minimum Financial Assurance (MFA) estimated per 10 CFR 50.75(b) and (c) (2010$)
2. Decommissioning Trust Fund Total as of 12/31/10 Decommissioning Trust Fund Total as of 2/28/11
3.

A schedule of the annual amounts remaining to be collected

4.

Assumptions used in determining rates of escalation in decommissioning costs, rates of earnings on decommissioning funds, and rates of other factors used in funding projections

5.

Any contracts upon which the licensee is relying pursuant to 10 CFR 50.75(e)(1)(v)

6.

Modifications occurring to a licensee's current method of providing financial assurance since the last submitted report

7.

Any material changes to trust agreements

$ 439.13 million [Note]

$ 271.16 million

$ 279.20 million None 2% annual real rate of return per 10 CFR 50.75(e)(1)(i)

None None None Note: Calculation of the NRC Minimum Amount is provided in Attachment 12.

11 2

ENOC-1 1-0005 Entergy Nuclear Operations, Inc.

Calculation of Minimum Amount - Palisades For Year Ending December 31, 2010 - 10 CFR 50.75(f)(1)

Entergy Nuclear Palisades LLC.: 100% ownership interest Plant Location: Covert, Michigan Reactor Type: Pressure Water Reactor ("PWR")

Power Level: <3,400 MWt (2565 MWt)

PWR Base Year 1986$: $97,572,000 Labor Region: Midwest Waste Burial Facility: Generic Disposal Site 10CFR50.75(c)(2) Escalation Factor Formula:

0.65(L) +0.13(E) +0.22(B)

L=Labor (Midwest)

E=Energy (PWR)

B=Waste Burial-Vendor (PWR)

PWR Escalation Factor:

0.65(L) +0.13(E) +0.22(B)=

Factor 2.321 2.2632 12.283 4.500543 1986 PWR Base Year $ Escalated:

$97,572,000

  • Factor=

$439,126,944 1

2 3

Bureau of Labor Statistics, Series Report ID: CIU2010000000230i (4 th Quarter 2010)

Bureau of Labor Statistics, Series Report ID: wpu0543 and wpu0573 (December 2010)

Nuclear Regulatory Commission: NUREG-1307 Revision 14, Table 2.1 (2010) 12 3

ENOC-1 1-0005 Entergy Nuclear Operations, Inc.

Status of Decommissioning Funding - Big Rock Point For Year Ending December 31, 2010 - 10 CFR 50.75(f)(1)

Plant Name: Big Rock Point ISFSI

1. Amount of decommissioning funds required from most recent estimate (2003 dollars).

Decommissioning cost estimate escalated at 3% per year to 2010 dollars.

2.

Decommissioning Funding Assurance Method.

3.

A schedule of the annual amounts remaining to be collected

4.

Assumptions used in determining rates of escalation in decommissioning costs, rates of earnings on decommissioning funds, and rates of other factors used in funding projections

5.

Any contracts upon which the licensee is relying pursuant to 10 CFR 50.75(e)(1)(v)

6.

Modifications occurring to a licensee's current method of providing financial assurance since the last submitted report

7.

Any material changes to trust agreements

$ 2.74 million

$ 3.37 million Parent Guarantee ($5 million)

None Escalation rate: 3.0%

Rate of earnings: n/a None None None 13 4

ENOC-1 1-0005 Entergy Nuclear Operations, Inc.

IP1 DTF Balance Based on Decommissioning Funding Assurance Plan For Year Ending December 31, 2010 - 10 CFR 50.75(f)(1)

On October 23, 2008, Entergy Nuclear Indian Point 2, LLC (ENIP2) submitted a preliminary decommissioning cost analysis to the NRC in conjunction with its spent fuel management plan under 10 CFR 50.75(f)(3) and 10 CFR 50.54(bb) (Accession No. ML083040378, as supplemented by ENIP2's reply to RAIs on July 15, 2009 (Accession No. ML092050204). The preliminary decommissioning cost analysis contained separate site-specific decommissioning cost estimates for Indian Point 1 and Indian Point 2. The estimates were subsequently found to be reasonable by the NRC on March 17, 2010 (Accession No. ML100280544).

The Indian Point 1 site-specific decommissioning cost estimate that was submitted was based on a period of safe storage that is specifically described in the estimate, namely storage until 2066, at which time the plant will be decommissioned and the site released for alternative use without restriction. Table 7 in the Indian Point 1 site-specific estimate (page 34 of 36) provides the annual license termination phase expenditures for Indian Point 1 in 2007 dollars (excluding those costs expended to date and through the 3 rd quarter of 2013 which are funded by operations). Table 9-1 below escalates those 2007 dollar figures to 2010 dollars using escalation values obtained from data provided by IHS Global Insight. The decommissioning trust fund (DTF) ending balance is escalated each year by the 2% real growth figure allowed pursuant to 10 CFR 50.75(e)(1)(i).

14 4

ENOC-1 1-0005 Entergy Nuclear Operations, Inc.

IP1 DTF Balance Based on Decommissioning Funding Assurance Plan For Year Ending December 31, 2010 - 10 CFR 50.75(f)(1)

Table 9-1 NRC License Termination Cost

($ millions) 2007$

2010$

Unit 1 Unit 1 Ending DTF Radiological Radiological Balance 2010 286.857 2011 292.594 2012 298.446 2013 1.059 1.119 303.296 2014 4.236 4.476 304.886 2015 4.236 4.476 306.508 2016 2.656 2.801 309.838 2017 2.649 2.793 313.242 2018 2.649 2.793 316.714 2019 2.649 2.793 320.255 2020 2.656 2.801 323.859 2021 2.649 2.793 327.543 2022 2.649 2.793 331.301 2023 2.649 2.793 335.134 2024 2.656 2.801 339.036 2025 2.649 2.793 343.024 2026 2.649 2.793 347.091 2027 2.649 2.793 351.240 2028 2.656 2.801 355.464 2029 2.649 2.793 359.780 2030 2.649 2.793 364.183 2031 2.649 2.793 368.674 2032 2.656 2.801 373.247 2033 2.649 2.793 377.919 2034 2.649 2.793 382.684 2035 2.649 2.793 387.545 2036 2.656 2.801 392.495 2037 2.649 2.793 397.552 2038 2.649 2.793 402.710 2039 2.649 2.793 407.971 2040 2.656 2.801 413.330 2041 2.649 2.793 418.804 2042 2.649 2.793 424.387 2043 2.649 2.793 430.082 2044 2.656 2.801 435.883 2045 2.611 2.752 441.848 15 4

ENOC-1 1-0005 Entergy Nuclear Operations, Inc.

IP1 DTF Balance Based on Decommissioning Funding Assurance Plan For Year Endinq December 31. 2010 - 10 CFR 50.75(f)(1)

Table 9-1 (continued)

NRC License Termination Cost

($ millions) 2007$

2010$

Unit 1 Unit 1 Ending DTF Radiological Radiological Balance 2046 1.826 1.922 448.763 2047 1.826 1.922 455.816 2048 1.831 1.928 463.005 2049 1.826 1.922 470.343 2050 1.826.

1.922 477.827 2051 1.826 1.922 485.461 2052 1.831 1.928 493.243 2053 1.826 1.922 501.185 2054 1.826 1.922 509.286 2055 1.826 1.922 517.549 2056 1.831 1.928 525.972 2057 1.826 1.922 534.569 2058 1.826 1.922 543.338 2059 1.826 1.922 552.282 2060 1.831 1.928 561.400 2061 1.826 1.922 570.706 2062 1.826 1.922 580.198 2063 1.826 1.922 589.880 2064 1.831 1.928 599.750 2065 1.826 1.922 609.823 2066 18.899 20.013 602.006 2067 68.313 71.807 542.239 2068 148.490 156.022 397.062 2069 17.216 18.143 386.861 2070 17.216 18.143 376.456 2071 17.216 18.143 365.842 2072 17.235 18.163 354.995 2073 11.400 12.054 350.041 Total 441.549 464.844 The foregoing SAFSTOR analysis shows that when the December 31, 2010 DTF balance is escalated at the allowable rate and compared against the annual figures for the SAFSTOR period, that an approximately $350.041 million surplus exists at the end of the decommissioning project. Accordingly, ENIP2 concludes that no further action is required at this time to demonstrate adequate funding assurance for decommissioning Indian Point 1.

16 5

ENOC-1 1-0005 Entergy Nuclear Operations, Inc.

1P2 DTF Balance Based on Decommissioning Funding Assurance Plan For Year Ending December 31, 2010 - 10 CFR 50.75(f)(1)

On August 13, 2009, Entergy Nuclear Indian Point 2, LLC (ENIP2) submitted a decommissioning funding assurance plan for Indian Point Energy Center, Unit 2 (Indian Point 2)

(Accession No. ML092260720). The plan was in response to a projected decommissioning funding shortfall for ENIP2 and the subsequent need to describe how and when the licensee intends to make adjustments to its financial assurance mechanisms. This attachment provides an update to the August 13, 2009 funding plan.

ENIP2 has determined that use of a SAFSTOR analysis shows that there is presently reasonable assurance that adequate funds will be available for the decommissioning process in compliance with NRC decommissioning funding assurance rules.

Pursuant to 10 CFR 50.75(e)(1)(i), "A licensee that has prepaid funds based on a site-specific estimate under § 50.75(b)(1) of this section may take, credit for projected earnings on the prepaid decommissioning trust funds, using up to a 2 percent annual real rate of return from the time of future funds' collection through the projected decommissioning period, provided that the site-specific estimate is based on a period of safe storage that is specifically described in the estimate." ENIP2 understands that a facility specific analysis may be used for demonstrating the adequacy of decommissioning funds, provided that "the NRC-required cost estimate for decommissioning costs as defined in 10 CFR 50.2 is equal to or greater than the amount stated in the formulas in 10 CFR 50.75(c)(1) and (2) as the basis for justifying a higher than minimum funding level." (Regulatory Guide 1.159, section 1.1.1; Draft Regulatory Guide-1229, section 1.1.1.) ENIP2 also understands that NRC should be provided the analysis, and that the analysis should include data for each year of the analysis.

On October 23, 2008, ENIP2 submitted a site specific decommissioning cost estimate to the NRC in conjunction with its preliminary decommissioning cost estimate, and spent fuel management plan under 10 CFR 50.75(f)(3) and 10 CFR 50.54(bb) (Accession No. ML083040378, as supplemented by ENIP2's reply to RAIs on July 15, 2009 (Accession No. ML092050204). That submittal contained separate site-specific decommissioning cost estimates for Indian Point 1 and Indian Point 2. The Indian Point 2 site-specific decommissioning cost estimate that was submitted was based on a period of safe storage that is specifically described in the estimate, namely storage until 2064, at which time the plant will be decommissioned and the site released for alternative use without restriction. Table 4 in the Indian Point 2 site-specific estimate (page 31 of 38) provides the annual license termination phase expenditures for Indian Point 2 in 2007 dollars.

On December 10, 2010, ENIP3 submitted a site specific decommissioning cost estimate to the NRC in conjunction with its preliminary decommissioning cost estimate, and spent fuel management plan under 10 CFR 50.75(f)(3) and 10 CFR 50.54(bb) (Accession Nos.

ML103540233 and ML103550608). In the ENIP3 estimate, the off-loading of the Indian Point 3 spent fuel storage pool was predicated on the availability of the Indian Point 2 spent fuel storage pool through the end of year 2023. This pool operating duration is 21/2 years longer than what was assumed in the original 2007 Indian Point 2 estimate. For consistency, the 2007 Indian Point 2 estimate has been revised for the longer pool operating duration. This did not impact the 17 5

ENOC-1 1-0005 Entergy Nuclear Operations, Inc.

IP2 DTF Balance Based on Decommissioning Funding Assurance Plan For Year Ending December 31, 2010 - 10 CFR 50.75(f)(1) overall Indian Point 2 estimate schedule length. The revised cost (in 2007 dollars) is shown in Table 10-1 along with the original cost.

Table 10-1 below escalates the revised 2007 dollar figures to 2010 dollars using escalation values obtained from data provided by IHS Global Insight. The decommissioning trust fund (DTF) ending balance is escalated each year by the 2% real growth figure allowed pursuant to 10 CFR 50.75(e)(1)(i).

Table 10-1 below uses the December 31, 2010 balance and indicates that there is now a

$163.467 million surplus in 2073 in decommissioning trust funds at the end of radiological decommissioning of Indian Point 2.

18 5

ENOC-1 1-0005 Entergy Nuclear Operations, Inc.

IP2 DTF Balance Based on Decommissioning Funding Assurance Plan For Year Ending December 31, 2010 - 10 CFR 50.75(f)(1)

Table 10-1 NRC License Termination Cost

($ millions) 2007$

2007$

Unit 2 2010$

Unit 2 Updated Unit 2 Ending DTF Radiological Radiological Radiological Balance 2010 374.738 2011 382.233 2012 389.878 2013 11.164 11.164 11.824 385.852 2014 49.271 49.271 52.116 341.453 2015 25.307 25.307 26.765 321.517 2016 3.711 3.711 3.921 324.026 2017 3.701 3.701 3.910 326.596 2018 3.701 3.701 3.910 329.218 2019 3.701 3.701 3.910 331.892 2020 3.711 3.711 3.921 334.609 2021 3.688 3.701 3.910 337.391 2022 3.676 3.701 3.910 340.229 2023 3.676 3.701 3.910 343.123 2024 3.686 3.686 3.895 346.091 2025 3.676 3.676 3.884 349.129 2026 3.676 3.676 3.884 352.227 2027 3.676 3.676 3.884 355.387 2028 3.686 3.686 3.895 358.600 2029 3.676 3.676 3.884 361.888 2030 3.676 3.676 3.884 365.242 2031 3.676 3.676 3.884 368.663 2032 3.686 3.686 3.895 372.141 2033 3.676 3.676 3.884 375.700 2034 3.676 3.676 3.884 379.330 2035 3.676 3.676 3.884 383.032 2036 3.686 3.686 3.895 386.798 2037 3.676 3.676 3.884 390.650 2038 3.676 3.676 3.884 394.579 2039 3.676 3.676 3.884 398.586 2040 3.686 3.686 3.895 402.663 2041 3.676 3.676 3.884 406.832 2042 3.676 3.676 3.884 411.084 2043 3.676 3.676 3.884 415.421 2044 3.686 3.686 3.895 419.835 2045 3.675 3.676 3.884 424.347 2046 3.668 3.676 3.884 428.950 19 5

ENOC-1 1-0005 Entergy Nuclear Operations, Inc.

IP2 DTF Balance Based on Decommissioning Funding Assurance Plan For Year Ending December 31, 2010 - 10 CFR 50.75(f)(1)

Table 10-1 (continued)

NRC License Termination Cost (millions 2007$

2007$

Unit 2 2010$

Unit 2 Updated Unit 2 Ending DTF Radiological Radiological Radiological Balance 2047 3.668 3.675 3.884 433.645 2048 3.678 3.678 3.887 438.431 2049 3.668 3.668 3.876 443.323 2050 3.668 3.668 3.876 448.313 2051 3.668 3.668 3.876 453.403 2052 3.678 3.678 3.887 458.584 2053 3.668 3.668 3.876 463.879 2054 3.668 3.668 3.876 469.280 2055 3.668 3.668 3.876 474.789 2056 3.678 3.678 3.887 480.398 2057 3.668 3.668 3.876 486.130 2058 3.668 3.668 3.876 491.976 2059 3.668 3.668 3.876 497.939 2060 3.678 3.678 3.887 504.011 2061 3.668 3.668 3.876 510.215 2062 3.668 3.668 3.876 516.543 2063 3.668 3.668 3.876 522.998 2064 24.751 24.751 26.199 507.259 2065 55.625 55.625 58.792 458.613 2066 168.560 168.560 177.452 290.334 2067 71.834 71.834 75.804 220.337 2068 25.113 25.113 26.507 198.237 2069 6.046 6.046 6.383 195.819 2070 6.046 6.046 6.383 193.352 2071 6.046 6.046 6.383 190.836 2072 6.547 6.547 6.913 187.740 2073 26.485 26.485 28.028 163.467 Total 659.351 659.430 696.201 As can be seen from the information provided in Table 10-1, the required funding for SAFSTOR decommissioning, $696.201 million, is greater than the NRC formula amount per 10 CFR 50.75(b) and 1(c) of $474.22 million, therefore, the site-specific analysis complies with the requirement from Regulatory Guide 1.159 section 1.1.1 previously discussed. The foregoing SAFSTOR analysis shows that when the December 31, 2010 DTF balance is escalated at the allowable rate and compared against the annual figures for the SAFSTOR period, that an 20 5

ENOC-1 1-0005 Entergy Nuclear Operations, Inc.

IP2 DTF Balance Based on Decommissioning Funding Assurance Plan For Year Ending December 31, 2010 - 10 CFR 50.75(f)(1) approximately $163.467 million surplus exists at the end of the decommissioning project.

Accordingly, ENIP2 concludes that no further action is required at this time to demonstrate adequate funding assurance for decommissioning Indian Point 2.

21 6

ENOC-1 1-0005 Entergy Nuclear Operations, Inc.

Minimum Financial Assurance Calculation Worksheets Plant name:

Indian Point, Unit 1 Month Day Year Year of Biennial:

1 1

2011 Termination of Operation:

9 28 2066 SAFSTOR Site Specific IMWth I1986$

ECI IBase Lx ILx~

Px IFx I

IEx IB x

PWR 615 r $85,560,000 r 113.6 2.16 0.65 2.45 r 1.675 r 3.074 0.13 r 2.263 0.22 12.28 NRC Minimum:

$392,781,200 Site Specific:

$464,844,000, Amount of NRC Minimum/Site Licensee:

% Owned:

Specific:

Amount in Trust Fund:

Entergy 100.00%

1

$464,840,000

$286,860,000 NOTE: See Attachment 14 for the adequacy of the Trust Fund 22 6

ENOC-1 1-0005 Entergy Nuclear Operations, Inc.

Minimum Financial Assurance Calculation Worksheets Plant name:

Indian Point, Unit 2 Year of Biennial:

rermination of Operation Month 1

9 Day 1

28 Year 2011 2064 SAFSTOR Site Specific i I19w--

EC I Base Lx I

I x

I Ix PWR 3216 r$193,3oo,86$

113.6 r 2.16 0.65 r2.45 1.675 r 3.074 0.13 2.263 0.22 12.28 NRC Minimum:

$474,224,079 Site Specific:

$696,201,000 Amount of NRC Minimum/Site Licensee:

%Owned:

Specific:

Amount in Trust Fund:

Entergy 100.00%

$696,201,000

$374,740,000 NOTE: See Attachment 15 for the adequacy of the Trust Fund 23 6

ENOC-1 1-0005 Entergy Nuclear Operations, Inc.

Minimum Financial Assurance Calculation Worksheets Plant name:

Indian Point, Unit 3 Year of Biennial:

rermination of Operation IP IR MWth I $10 0

I IPWR 13216 r$103,300,800 r Month 1

12 Day 1

12 Year 2011 2015 ECI Base Lx I

I !Lal Px l

Fx I

I gK I

I @--xI I

-I 113.6 1

2.16 I

0.65 r

2.45 r

1.675 r

3.074 I 0.13 f

2.263 I 0.22 1 12.28 I NRC Minimum:

$474,224,079 Site Specific:

F F

Licensee:

%Owned:

Entergy 100.00%

Amount of NRC Minimum/Site Specific:

$474,224,079

-1 Amount in Trust Fund:

$493,330,000 I

Step 1:

Earnings Credit:

Trust Fund Balance:

$493,330,000 Step 2:

Accumulation:

Value of Annuity per I Real Rate of Return per 2%

Real Rate of IYears Left lin Licensel 14.95 1

Total Real Rate of 1.10292 1-Total Earnings:

$544,102,708 ITotal Earnings = Trust Fund balance x (l+RRR)AYears left in license I

year Return per Years of Annuity:

Total Annuity:

$0 2%

0 Toal y

Step 3:

Decom Period:

Real Rate of Decorn Total Real Total Eamings:

Return per Period:

Rate of Total Earnings for Decorn

$544,102,708 2%

7 0.14869

$40,450,137 11 Earnings for Decom = (1/2) x Total Earningsx [(l+RRR)^Decom period ITotal of Steps 1 - 3:

1

$584,552,845 ITotal = Total Earnings + Total Earnings for Decom lExcess (Shortfall)

$110,328,766 to NRC minimum I

24 6

ENOC-1 1-0005 Entergy Nuclear Operations, Inc.

Minimum Financial Assurance Calculation Worksheets Plant name:

Vermont Yankee Power Station Year of Biennial:

rermination of Operation Month 1

3 Day 1

21 Year 2011 2032 License Renewal to NRC Min I MWth ECI BWR 1912 1$121,208,000 113.6 Base Lx 2.16 0.65 1

Px 1.675 FxI 3.074 0.134 2.319 0224 12 54 NRC Mimimum:

$564,245,876 Site Specific:

F Licensee:

%Owned:

Amount of NRC Minimum/Site Specific:

Amount nTrust Fund Entergy 100.00%

$564,245,876 1

$474,220,000 Step 1:

Earnings Credit:

Trust Fund Balance:

$474,220,000 Real Rate of iYears Leftj Total Real Retum per lin Licensel Rate of 2/o 21.22 1.52233 I

Total Earnings:

$721,918,344 iTotal Earnings= Trust Fund balance x (1+RRR)AYears left in license Step 2:

Accumulation:

Value of Annuity per Real Rate at year Return per Years of Annuity:

Total Annuity:

$0 21/o 0

$0 Real Rate of Years remaining after Total Annuity Retur per annuity Total Step 2

$0 2%

21.22146119

$0 TotalStep 1 + Step 2

$721,918,344 Step 3:

Decom Period:

Total Earnings:

$721,918,344 4 Real Rate of Decomr Total Real Return per Peod:i Rate of 20/6 7

0.14869 Total Earnings for Decorn:

I

$53,669,455 Total Earnings for Decom = (1/2) x Total Earnings x [(l+RRR)ADecom period -

Total of Steps 1-3:

[j

$'75,587,80 Iotal = Total Earnings + Total Earnings for Decom rExcess (Shortfall) 211,341,923 to NRC minimum I

25 6

ENOC-1 1-0005 Entergy Nuclear Operations, Inc.

Minimum Financial Assurance Calculation Worksheets Plant name:

Pilgrim Year of Biennial:

rermination of Operation Month 1

6 Day 1

8 Year 2011 2012 IMWth 202 8

6

[

1 ECI I

Base Lx.1 BWR 1

2028 r$122,252.000r 113.6 1

2.16 1

0.65 2.45 Px I

Fx I

I EýE IIB.12i 1.675 r

3.074 I

0.13 r

2.319 1

0.22 1 NRC Minimum:

$569,105,891 Site Specific:

Licensee:

%Owned:

Amount of NRC Minimum/Site Specific:

lAmountin Trust Fund, Entergy 100.00%,

$569,105,891 1

$645,920,000 I

Step 1:

Earnings Credit:

Trust Fund Balance:

$645,920,000 Real Rate of I Years LeftI Return per lin ucenseI 29/6 1

1.44 1

Total Real Rate of 1.02884 Total Earnings:

$664,549,359 dTotal Earnings = Trust Fund balance x (l+RRR)^Years left in license Step 2:

Accumulation:

Value of Annuity per ReatlRate lf year Retr per

$0 29/6 Years of Annuity:

0 I

ToalAnuity:

H Step 3:

Decom Period:

Real Rate of Decomn Total Earnings:

Return per Period:

$664,549,359 20/o 7

I Total Real Rate of Total Earnings for Decorn:

0.14869

$49,404,483 I Total Earnings for Decom = (1/2) x Total Earnings x [(l+RRR)^Decom perik Total of Steps 1 - 3:

$713,953,842 Total = Total Earnings.+ Total Earnings for Decom Excess (Shortfall) 144,847,950 to NRC minimum 26 6

ENOC-1 1-0005 Entergy Nuclear Operations, Inc.

Minimum Financial Assurance Calculation Worksheets Plant name:

James A. Fitzpatrick Month Day Year Year of Biennial:

1 1

2011 Fermination of Operation 10 17 2034 MWth I9-rc ECI Base Lx L

Px Fx.x Dx BWR 2536

[$126,824,000[

113.6 2.16 0.65 r 2.45 [

1.675 r

3.074 0.13 r 2.319 0.22 12.54 NRC Minimum:

$590,389,405 Licensee:

%Owned:

Amount of NRC Minimum/Site Specific: lAmount in Trust Fundt Entergy 100.00%

$590,389,405

$538,310,000 Step 1:

Earnings Credit:

Real Rate of Years Left in Total Real Trust Fund Balance:

Return per License Rate of Total Earnings:

$538,310,000 2%

23.79 1.60188

$862,310,195 ITotal Earnings = Trust Fund balance x (1+RRR)^Years left In license Step 2:

Accumulation:

Value of Annuity per Real Rate of year Return per Years of Annuity:

Total Annuity:

$0 2%

0

$0 Step 3:

Decom Period:

Real Rate of Decorn Total Real Total Earnings for Total Earnings:

Return per Period:

Rate of Decom:

$862,310,195 2%

7 0.14869

$64,106,584 ITotal Earningsfor Decom = (1/2) x Total Earningsx [(l+RRR)^Decom period-'

Total of Steps 1 - 3:

$926,416,779 ITotal = Total Earnings + Total Earnings for Decom lExcess (Shortfall)

$336,027,373 to NRC minimum 27 6

ENOC-1 1-0005 Entergy Nuclear Operations, Inc.

Minimum Financial Assurance Calculation Worksheets Plant name:

Palisades Nuclear Plant Month Day Year Year of Biennial:

1 1

2011 rermination of Operation 3

24 2031 1-MWth ECI Base Lx Px~

F.

I x PWR 2565

$97,572,000 111.3 2.08 0.65 2.32 1.675 3.074 0.13 2.263 0.22 12.28 NRC Minimum:

$439,126,944 Amount of NRC Minimum/Site Licensee:

%Owned:

Specific:

Amount in Trust Fund:

Entergy 100.00%

$439,126,944

$271,160,000 Step 1:

Earnings Credit Real Rate of Years Lefti Total Real Trust Fund Balance:

Return per lin Licensel Rate of Total Earnings:

$271,160,000 29/

20.23 1

1.49272

$404,766,304 Total Eamings= Trust Fund balance x (l+RRR)AYears left in license Step 2:

Accumulation:

Value of Annuity per Real Rate of year j Retur per Years of Annuity:

Total Annuity:

$0 29%

0

$0 Step 3:

Decom Period:

Real Rate of Decorn Total Real Total Earnings for Total Earnings:

Return per Period:

Rate of Decor:

$404,766,304 2%

7 0.14869

$30,091,474 Earnings for Decom = (1/2) x Total Eamingsx [(l+RRR)^Decom period Total of Steps 1 - 3:

$434,857,778 Total = Total Earnings+ Total Earnings for Decom Excess (Shortfall)

(S4,269,166) to NRC minimum I

28 6

ENOC-1 1-0005 Entergy Nuclear Operations, Inc.

Minimum Financial Assurance Calculation Worksheets Plant name:

Palisades Nuclear Plant Month Day Year Year of Biennial:

3 1

2011 rermination of Operation 3

24 2031 MWth 1986$

ECI IBase Lx Lxj Px F.

B PWR 2565 r$97,572,000 r 111.3 2.08 0.65 2.32 r 1.675 r 3.074 0.13 r 2.263 1

0.22 12.28 NRC M imimum:

$439,126,944 Amount of NRC Minimum/Site Licensee:

% Owned:

Specific:

Amount in Trust Fund:

Entergy 100.00%

$439,126,944

$279,202,935 Step 1:

Earnings Credit:

IReal Rate of IYears Lefts Total Real Trust Fund Balance:

Return per lin Licensel Rate of Total Earnings:

$279,202,935 1

2%

1 20.06 1

1.48780

$415,398,901 Total Earnings = Trust Fund balance x (l+RRR)^Years left in license Step 2:

Accumulation:

Value of Annuity per Real Rate of year Return per Years of Annuity:

Total Annuity:

$0 2%

0

$0 Step 3:

Decom Period:

Real Rate of Decomn Total Real Total Earnings for Total Earnings:

Return per Period:

Rate of Decom:

$415,398,901 2%

7 0.14869

$30,881,931 I Earnings for Decom = (1/2) x Total Earningsx [(l+RRR)ADecom period Total of Steps 1 - 3:

$446,280,832 ITotal = Total Earnings + Total Earnings for Decom lExcess (Shortfall)

$7,153,889 to NRC minimum I

29

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