ENOC-17-00006, Status of Funding for Managing Irradiated Fuel for Year Ending December 31, 2016 - 10 CFR 50.82(a)(8)(vii)

Status of Funding for Managing Irradiated Fuel for Year Ending December 31, 2016 - 10 CFR 50.82(a)(8)(vii)

ML17089A717
Person / Time
Site:	Indian Point, Vermont Yankee, Big Rock Point
Issue date:	03/30/2017
From:	Ford B Entergy Nuclear Operations
To:	Document Control Desk, Office of Nuclear Material Safety and Safeguards, Office of Nuclear Reactor Regulation
References
ENOC-17-00006
Download: ML17089A717 (8)

Text

z E;ntergy EntergyNuearOperations, Inc Jackson, MS 39213 Tel: 601-368-5516 Bryan S. Ford Senior Manager, Fleet Regulatory Assurance ENOC-1 7-00006 March 30, 2017 ATTN: Document Control Desk U.S. Nuclear Regulatory Commission Washington, DC 205555-0001

SUBJECT:

Status of Funding for Managing Irradiated Fuel For Year Ending December 31, 2016 10 CFR 50.82(a)(8)(vii)

Entergy Nuclear Operations, Inc.

Indian Point Nuclear Generating Station 1 Docket No.50-003 License No. DPR-5 Big Rock Point Docket No. 50-155 License No. DPR-6 Vermont Yankee Docket No. 50-271 License No. DPR-28

Dear Sir or Madam:

10 CFR 50.82(a)(8)(vii) requires that after submitting its site-specific decommissioning cost estimate pursuant to 1 0 CFR 50.82(a)(4)(i), a licensee must annually submit to the NRC, by March 31 a report on the status of its funding for managing irradiated fuel. On behalf of Entergy Nuclear Indian Point 2, LLC, and Entergy Nuclear Palisades, LLC, and Entergy Nuclear Vermont Yankee, LLC, Entergy Nuclear Operations, Inc. hereby submits the information requested for Indian Point 1 Big Rock Point, and Vermont Yankee. All or most of the spent fuel mananagement costs are a liability of the U.S. Government as a result of its breach of the spent fuel disposal contract. However, this report takes no credit for recoveries on that liability.

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

Sincerely, BSF/ljs/aye

ENOC-1 7-00006 Page 2 of 2 Attachments: 1 . Entergy Nuclear Operations, Inc. Status of Funding for Managing Irradiated Fuel Indian Point 1 for Year Ending December 31 201 6 1 0 CFR 50.82(a)(8)(vii)

2. Entergy Nuclear Operations, Inc. Status of Funding for Managing Irradiated Fuel Big Rock Point, for Year Ending December 31 201 6 1 0 CFR 50.82(a)(8)(vii)

3. Entergy Nuclear Operations, Inc. Status of Funding for Managing Irradiated Fuel Vermont Yankee, for Year Ending December 31 201 6 1 0 CFR 50.82(a)(8)(vii) cc:

Mr. A. C. Bakken (ECH)

Mr. J. R. Davis (ECH)

Mr. B. E. Green (TMBR)

Mr. L. M. Coyle (ECH)

Mr. C. F. Arnone (PAL)

Mr. J. A. Ventosa (ECH)

Mr. L. J. Smith (ECH)

Mr. A. J. Vitale (IPEC)

Mr. J. W. Boyle (VTY)

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, Big Rock Point USNRC Project Manager, Palisades USNRC Project Manager, Vermont Yankee USNRC Resident Inspector, Indian Point 2 USNRC Resident Inspector, Indian Point 3 USNRC Resident Inspector, Palisades Michigan Department of Environmental Quality Michigan Public Service Commission Ms. Bridget Frymire NYS Department of Public Service 3 Empire State Plaza Albany, NY 12223 Ms. June E. Tierney, Commissioner Vermont Department of Public Service 1 1 2 State Street Drawer 20 Montpelier, Vermont 05602-2601

Attachment 1 ENOC-i 7-00006 (Page 1 of 1)

Entergy Nuclear Operations, Inc.

Status of Funding for Managing Irradiated Fuel Indian Point 1 For Year Ending December 31, 2016 10 CFR 50.82(a)(8)(vii)

Plant Name: Indian Point Nuclear Generating Unit No. 1 1 . Funds accumulated to cover the i 93.77 million cost of managing irradiated fuel as of 1 2/31/201 6 [Note 1]

2. Projected costs to manage fuel until DOE removal (201 6$) $ 54.55 million

3. Plan as required See Note 2 Note 1 : This amount represents the excess funds available in the Unit 1 decommissioning trust fund less an amount necessary to decommission the Independent Spent Fuel Storage Installation (lSFSl). Per Unit ls updated decommissioning cost analysis, the present value (201 6$) of excess funds in Unit 1 s decommissioning trust at the end of decommissioning in 2073, after considering license termination expenses, is

$1 94.89 million ($590.76 million/(1 .02)A(20732017)). See Ending DTF Balance for 2073, Table 1 4-1 Decommissioning Funding Status Report per 1 0 CFR §50.75(f)(1) and 10 CFR 50.82(a)(8)(v) Entergy Nuclear Operations, Inc., filed March 2017. The estimated cost for decommissioning Indian Point 1 and 2s share of the site ISFSl is $6.79 million.

Of the 31 casks from Indian Point 1 and 2 on the ISFSI, 5 are attributable to Unit 1 or ,

16.1%. Unit ls share of ISFSI decommissioning cost is calculated as 16.1% x $6.79 million, or $1 .09 million. Thus, the present value of Unit 1 trust funds available for spent fuel management is $1 94.89 million minus $1 .09 million, or $1 93.80 million. For purposes of this report only, Indian Point 1 trust funds are being considered separately from Indian Point 2 trust funds; however, both funds are covered by a single trust agreement, and will likely be handled together upon decommissioning.

Note 2: The excess currently existing in Unit 1 5 decommissioning trust is sufficient to cover the estimated costs of spent fuel management. The licensee acknowledges the need for an exemption pursuantto 10 CFR §50.12(a) to use radiological decommissioning trust funds for costs other than decommissioning activities as defined in 1 0 CFR 50.2.

Attachment 2 ENOC-1 7-0006 (Page 1 of 1)

Entergy Nuclear Operations, Inc.

Status of Funding for Managing Irradiated Fuel Big Rock Point For Year Ending December 31, 2016 10 CFR 50.82(a)(8)(vii)

Plant Name: Big Rock Point 1 . Funds accumulated to cover the See Note 1 cost of managing irradiated fuel as of 12/31/2016

2. Projected costs to manage fuel until DOE removal (201 6$) $ 57.37 million

3. Plan as required See Note 1 Note 1 : Spent fuel management costs have been paid for out of Entergy Nuclear Palisades, LLC operating funds since Big Rock Point was acquired from Consumers Energy on April 1 1, 2007. Entergy Nuclear Palisades, LLC plans to continue paying for spent fuel management costs from said operating funds. Therefore, no funds are specifically accumulated for the cost of managing irradiated fuel at Big Rock Point as of 12/31/2016.

Attachment 3 ENOC-i 7-00006 (Pagel of 4)

Entergy Nuclear Operations, Inc.

Status of Funding for Managing Irradiated Fuel Vermont Yankee For Year Ending December 31, 2016 10 CFR 50.82(a)(8)(vii)

Plant Name: Vermont Yankee

1. Fundsaccumulatedtocoverthe $193.61 million cost of managing irradiated fuel as of 1 2/31/201 6 [Note 1]

2. Projected costs to manage fuel until DOE removal (2016$) $ 264.88 million

3. Plan as required See Note 2 Note 1 : This amount represents the excess funds available in the Vermont Yankee decommissioning trust fund less an amount necessary to decommission the Independent Spent Fuel Storage Installation (lSFSl). Per Vermont Yankees site-specific decommissioning cost estimate (Reference 1), the present value of excess funds in the decommissioning trust at the end of decommissioning in 2075, after considering license termination expenses, is $1 98.81 million ($626.97 million/(1 .02)A(20752017)). See Table 3-1 below. Table 3-1 has been constructed by removing spent fuel management expenses from Table 1 5-1 Decommissioning Funding Status Report per 1 0 CFR

§50.75(f)(1) and 10 CFR 50.82(a)(8)(v) Entergy Nuclear Operations, Inc. filed March 2017, to yield the surplus atthe end of decommissioning that would otherwise be available for spent fuel management and ISFSI decommissioning. This calculated surplus takes into account available funds in the decommissioning trust. The estimated cost for decommissioning Vermont Yankees ISFSI is $5.20 million. Thus, the present value of Vermont Yankee trust funds available for spent fuel management is $198.81 million minus $5.20 million, or $193.61 million.

Note 2: Reference 3, Attachment 1 5 demonstrates that the Vermont Yankee decommissioning trust fund is sufficiently funded for all license termination activities and certain spent fuel management activities (i.e., operational costs, shown in Col. 2, less Col. 3, of Table 15-1 of Reference 3), and reflects completion of the transfer to dry fuel storage in 2018, contingent upon certain regulatory approvals. As discussed in the Irradiated Fuel Management Program Update (Reference 2) costs related to spent fuel management operations (e.g., operations and maintenance costs for the spent fuel and Independent Spent Fuel Storage Installation, totaling approximately $175 million) will be funded from the decommissioning trust fund. Entergy Nuclear Operations, Inc. obtained an exemption that allows the use of trust funds for spent fuel management activities (NRC Approval of Exemption Request for Spent Fuel Management, 80 Fed. Reg. 35992, June 23, 2015, Reference 4). The remaining $90 million is associated with transfer of spent fuel to dry storage (e.g., procurement of dry storage systems, transfer of fuel from the spent fuel pool to the Independent Spent Fuel Storage Installation (ISFSI), and construction of the second SF51 pad). To fund the transfer to dry storage portion of spent fuel management costs, Entergy Nuclear Vermont Yankee, LLC has established two separate revolving credit facilities from third party banks totaling $1 45 million.

Attachment 3 ENOC-1 7-00006 (Page 2 of 4)

Entergy Nuclear Operations, Inc.

Status of Funding for Managing Irradiated Fuel Vermont Yankee For Year Ending December 31, 2016 10 CFR 50.82(a)(8)(vii)

Table 3-1 Vermont Yankee Nuclear Power Station SAFSTOR Methodology -

Annual Cash Flow Analysis Total License Termination (In Thousands in 2015 Dollars)

Column 4 License Termination Column 5 Column 9 Column 3 Cost pins Beginning Year Column 1 Column 2 Exclude Spent Fuel of Year Column 8 Ending 50.75 50.54 (bb) Dry Fuel Management Trust Trust Trust License Spent Fuel Spent Fuel Cost less Dry Fund Column 6 Column 7 Fund Fund Termination Management Management Fuel Cost Balance Withdraw Contribute Earnings Balance Year Cost ($000s) Cost ($000s) Cost ($000s) ($000s) ($000s) ($000s) ($000s) ($000s) ($000s) 2017 42,386 0 0 42,386 561,615 42,386 0 10,385 529,613 2018 51,878 0 0 51,878 529,613 51,878 0 9,555 487,289 2019 5,414 0 5,414 487,289 5,414 0 9,638 491,513 2020 5,362 0 5,362 491,513 5,362 0 9,723 495,874 2021 5,362 0 5,362 495,874 5,362 0 9,810 500,322 2022 3,741 0 3,741 500,322 3,741 0 9,932 506,513 2023 3,741 0 3,741 506,513 3,741 0 10,055 512,827 2024 3,741 0 3,741 512,827 3,741 0 10,182 519,267 2025 3,680 0 3,680 519,267 3,680 0 10,312 525,899 2026 3,829 0 3,829 525,899 3,829 0 10,441 532,511 2027 3,882 0 3,882 532,511 3,882 0 10,573 539,202 2028 3,838 0 3,838 539,202 3,838 0 10,707 546,072 2029 3,829 0 3,829 546,072 3,829 0 10,845 553,088 2030 3,882 0 3,882 553,088 3,882 0 10,984 560,190 2031 3,829 0 3,829 560,190 3,829 0 11,127 567,489 2032 3,838 0 3,838 567,489 3,838 0 11,273 574,924 2033 3,882 0 3,882 574,924 3,882 0 11,421 582,463 2034 3,829 0 3,829 582,463 3,829 0 11,573 590,207 2035 3,829 0 3,829 590,207 3,829 0 11,728 598,105 2036 3,891 0 3,891 598,105 3,891 0 11,284 606,099 2037 3,829 0 3,829 606,099 3,829 0 12,045 614,316 2038 3,829 0 3,829 614,316 3,829 0 12,210 622,696 2039 3,882 0 3,882 622,696 3,882 0 12,376 631,191 2040 3,838 0 3,838 631,191 3,838 0 12,547 639,900 2041 3,829 0 3,829 639,900 3,829 0 12,721 648,793 2042 3,882 0 3,882 648,793 3,882 0 12,898 657,809 2043 3,829 0 3,829 657,809 3,829 0 13,080 667,060 2044 3,838 0 3,838 667,060 3,838 0 13,264 676,486 2045 3,882 0 3,882 676,486 3,882 0 13,452 686,057 2046 3,829 0 3,829 686,057 3,829 0 13,645 695,873

Attachment 3 ENOC-1 7-00006 (Page 3 of 4)

Entergy Nuclear Operations, Inc.

Status of Funding for Managing Irradiated Fuel Vermont Yankee For Year Ending December 31, 2016 10 CFR 50.82(a)(8)(vii) 2047 3,829 0 3,829 695,873 3,829 0 13,841 705,885 2048 3,891 0 3,891 705,885 3,891 0 14,040 716,034 2049 3,829 0 3,829 716,034 3,829 0 14,244 726,449 2050 3,829 0 3,829 726,449 3,829 0 14,452 737,073 2051 3,882 0 3,882 737,073 3,882 0 14,664 747,855 2052 3,838 0 3,838 747,855 3,838 0 14,880 758,897 2053 3,671 0 3,671 758,897 3,671 0 15,105 770,330 2054 3,724 0 3,724 770,330 3,724 0 15,332 781,938 2055 3,671 0 3,671 781,938 3,671 0 15,565 793,832 2056 3,680 0 3,680 793,832 3,680 0 15,803 805,955 2057 3,724 0 3,724 805,955 3,724 0 16,045 818,276 2058 3,671 0 3,671 818,276 3,671 0 16,292 830,896 2059 3,671 0 3,671 830,896 3,671 0 16,544 843,769 2060 3,733 0 3,733 843,769 3,733 0 16,801 856,837 2061 3,671 0 3,671 856,837 3,671 0 17,063 870,229 2062 3,671 0 3,671 870,229 3,671 0 17,331 883,889 2063 3,724 0 3,724 883,889 3,724 0 17,603 897,768 2064 3,680 0 3,680 897,768 3,680 0 17,882 911,969 2065 3,671 0 3,671 911,969 3,671 0 18,166 926,464 2066 3,724 0 3,724 926,464 3,724 0 18,455 941,195 2067 3,671 0 3,671 941,195 3,671 0 18,750 956,274 2068 33,520 0 33,520 956,274 33,520 0 18,455 941,209 2069 74,947 0 74,947 941,209 74,947 0 17,325 883,587 2070 107,412 0 107,412 883,587 107,412 0 15,524 791,699 2071 87,194 0 87,194 791,699 87,194 0 14,090 718,595 2072 87,640 0 87,640 718,595 87,640 0 12,619 643,573 2073 51,945 0 51,945 643,573 51,945 0 11,833 603,461 2074 537 0 537 603,461 537 0 12,058 614,982 2075 310 0 310 614,982 310 0 12,293 626,966 728,091 0 0 728,091 561,615 728,091 0 793,442 626,966

Attachment 3 ENOC-1 7-00006 (Page 4 of 4)

Entergy Nuclear Operations, Inc.

Status of Funding for Managing Irradiated Fuel Vermont Yankee For Year Ending December 31, 2016 10 CFR 50.82(a)(8)(vii)

REFERENCES:

1 . Letter, Entergy Nuclear Operations, Inc. to USNRC, Post Shutdown Decommissioning Activities Report, BVY 14-078, dated December 19, 2014 (Accession No. ML14357A110)

2. Letter, Entergy Nuclear Operations, Inc. to USNRC, Update to Irradiated Fuel Management Program Pursuant to YOCFR 50.54(bb), BVY14-085, dated December 19,2014 (Accession No. ML14358A251)

3. Letter, Entergy Nuclear Operations, Inc. to USNRC, Decommissioning Funding Status Report per 10 CFR §50.75(f)(1) and 10 CFR 50.82(a)(8)(v), Filed March 2017

4. NRC Approval of Exemption Request for Spent Fuel Management, 80 Fed. Reg. 35992 (June 23, 2015)