GO2-13-051, Decommissioning Fund Status Report

Decommissioning Fund Status Report

ML13100A123
Person / Time
Site:	Columbia
Issue date:	03/28/2013
From:	Gregoire D Energy Northwest
To:	Document Control Desk, Office of Nuclear Reactor Regulation
References
GO2-13-051
Download: ML13100A123 (5)

Text

Donald W. Gregoire ENERGY Manager, Regulatory Affairs P.O. Box 968, PE20 Richland, WA 99352-0968 Ph. 509-377-8616 1F. 509-377-4317 dwgregoire @energy-northwest.com March 28, 2013 G02-13-051 10 CFR 50.75(f)(1)

U.S. Nuclear Regulatory Commission ATTN: Document Control Desk Washington, D.C. 20555-0001

Subject:

COLUMBIA GENERATING STATION, DOCKET NO. 50-397 DECOMMISSIONING FUND STATUS REPORT

References:

Letter G02-12-183 dated December 17, 2012, DW Gregoire (Energy Northwest) to NRC, "Decommissioning Cost Estimate and Decommissioning Funding Plan Submittals."

Dear Sir or Madam:

In accordance with the requirements of 10 CFR 50.75(f)(1), Energy Northwest hereby reports the status of the Columbia Generating Station (CGS) decommissioning funding:

• 2012 Estimated Decommissioning Cost - $454.6 Million" 0 Fund Balance as of December 31, 2012 - $183.9 Million o Schedule of Payments - Attachment 1

, Assumed Cost Escalation Rate - 4% /year

• Assumed Interest Rate - 6% /year 0 10 CFR 50.75(e)(1 )(v) Customer Contracts - Not Applicable 0 Changes in Financial Assurance Method - None e Material Changes to Trust Agreement - None

• NOTES:

(1) The value for the estimated decommissioning cost as of December 31, 2012, does not include state costs or Independent Spent Fuel Storage Installation (ISFSI) decommissioning costs. Decommissioning costs for the ISFSI were submitted separately in December 17, 2012 (Reference) in conformance with revised 10 CFR 72.30 regulations.

(2) No additional sampling programs or costs have been identified for characterization of significant residual radioactivity in accordance with Regulatory Guide 4.22, "Decommissioning Planning During Operations," as part of the decommissioning planning requirements during operations as required by new A, uL

DECOMMISSIONING FUND STATUS REPORT Page 2 of 2 regulation 10 CFR 20.1406(c) and revised regulations 10 CFR 20.1501 (a) and (b), because CGS already has a Ground Water Protection Program via implementation of NEI 07-07, "Industry Ground Water Protection Initiative - Final Guidance Document," and has been inspected under Temporary Instruction (TI) 2515/173, "Review of the Implementation of the Industry Ground Water Protection Voluntary Initiative," and TI 2515/185, "Follow-Up on the Industry's Ground Water Protection Initiative." This approach is acceptable for licensees under 10 CFR Part 50 that have implemented an NEI 07-07 program, as allowed in Regulatory Guide 4.22 and in conformance with TI 2600/017, "Review of the Implementation of the Decommissioning Planning Rule."

(3) A summary for the 2012 Estimated Decommissioning Cost calculation in accordance with NUREG-1 307, Revision 15, "Report on Waste Burial Charges -

Changes in Decommissioning Waste Disposal Costs at Low-Level Waste Burial Facilities," is included as Attachment 2.

There are no commitments being made to the NRC by this letter. Should you have any questions or require additional information pertaining to this report, please contact LL Williams at (509) 377-8148.

Respectfull DA Gregoire Manager, Regulatory Affairs : Columbia Generation Station Decommissioning Funding Schedule : Columbia Generating Station - 2012 Estimated Decommissioning Cost Summary cc: NRC Region IV Administrator NRC NRR Project Manager NRC Sr. Resident Inspector - 988C AJ Rapacz - BPA/1 399 DE Sandlin - BPA/1 399 CD Sonoda - BPA/1 399 WA Horin - Winston & Strawn

DECOMMISSIONING FUND STATUS REPORT Page 1 of 1 Columbia Generating Station - Decommissioning Funding Schedule Interest Fiscal Year Payment Earned j Account Balance FY 2009 Actual $ 117,894,400 FY 2010 Actual $ 134,600,500 FY 2011 Actual $ 160,337,000 FY 2012 Actual $ 173,583,500 FY 2013 3,630,000 $ 10,415,010 $ 187,628,510 FY 2014 3,075,000 $11,257,711 $ 201,961,221 FY 2015 3,198,000 $12,117,673 $ 217,276,894 FY 2016 3,325,920 $ 13,036,614 $ 233,639,427 FY 2017 3,458,957 $ 14,018,366 $ 251,116,750 FY 2018 3,597,320 $ 15,067,005 $ 269,781,070 FY 2019 3,741,208 $ 16,186,864 $ 289,709,142 FY 2020 3,890,856 $ 17,382,549 $ 310,982,546 FY 2021 4,046,490 $ 18,658,953 $ 333,687,989 FY 2022 4,208,350 $ 20,021,279 $ 357,917,619 FY 2023 4,376,684 $ 21,475,057 $ 383,769,359 FY 2024 4,551,751 $ 23,026,162 $ 411,347,272 FY 2025 4,733,821 $ 24,680,836 $ 440,761,930 FY 2026 4,923,174 $ 26,445,716 $ 472,130,820 FY 2027 5,120,101 $ 28,327,849 $ 505,578,770 FY 2028 5,324,905 $ 30,334,726 $ 541,238,401 FY 2029 5,537,901 $ 32,474,304 $ 579,250,606 FY 2030 5,759,417 $ 34,755,036 $ 619,765,060 FY 2031 5,989,794 $ 37,185,904 $ 662,940,758 FY 2032 6,229,386 $ 39,776,445 $ 708,946,589 FY 2033 6,478,561 $ 42,536,795 $ 757,961,946 FY 2034 6,737,704 $ 45,477,717 $ 810,177,366 FY 2035 7,007,212 $ 48,610,642 $ 865,795,220 FY 2036 7,287,500 $ 51,947,713 $ 925,030,433 FY 2037 7,579,000 $ 55,501,826 $ 988,111,260 FY 2038 7,882,160 $ 59,286,676 $ 1,055,280,095 FY 2039 8,197,447 $ 63,316,806 $ 1,126,794,348 FY 2040 8,525,345 $ 67,607,661 $ 1,202,927,353 FY 2041 8,866,358 $ 72,175,641 $ 1,283,969,353 FY 2042 9,221,013 $ 77,038,161 $ 1,370,228,527 FY 2043 9,589,853 $ 82,213,712 $ 1,462,032,092 FY 2044 9,973,447 $ 87,721,925 $ 1,559,727,464

DECOMMISSIONING FUND STATUS REPORT Page 1 of 2 Columbia Generating Station - 2012 Estimated Decommissioning Cost Summary The 2012 CGS Decommissioning cost estimate followed guidelines in NUREG-1307, Revision 15 (Final Report published January 2013), with the exception that the guidance uses Labor and Energy Adjustment Factors for the First Quarter of 2012 (March 2012) in the example calculations, while Energy Northwest (EN) has chosen to use Labor and Energy Adjustment Factors for the Second Quarter of 2012 (June 2012).

The reason for this exception is that EN's Fiscal Year ends in June and financial reporting to Bonneville Power Authority (BPA) is centered on the end of the Fiscal Year.

With the difference noted, the methodology and basic information provided in NUREG-1307 Revision 15 has been followed in EN's calculation.

The following is a summary of the input values and source references:

Cost Equation 2012 Cost = [1986 Cost]*[A*Lx + B*Ex + C*Bx] (1)

Where:

2012 Cost = Plant Decommissioning Cost Estimate for 2012 1986 Cost = Baseline decommissioning cost in 1986 dollars for a BWR Plant With generating capacity greater than or equal to 3,400 MW Thermal A = 0.65 (Average value provided in NUREG-1307)

B = 0.13 (Average value provided in NUREG-1307)

C = 0.22 (Average value provided in NUREG-1 307)

Bx = 6.704 (Value from NUREG-1 307 Rev 15, Table 2-1 for a BWR, Washington Site Disposal by Compact-Affiliated Facility Only)

Lx = Base Lx

• ECI / 100 (2)

Where:

Base Lx = 2.06 (Provided in Table 3-2 of NUREG-1 307 for West Area)

ECI = 116.3 (Employment Cost Index for 2 nd Quarter of 2012 obtained from US Bureau of Labor Statistics, Series ID CIU20100000002401)

DECOMMISSIONING FUND STATUS REPORT Page 2 of 2

Then, Lx = 2.06*(1 16.3 / 100) = 2.3958 Ex= 0.54*Px + 0.46*Fx (3)

Where:

Px = 207.7 / 114.2 (June 2012 Code 0543 / Jan 1986 Code 0543) = 1.8187 Fx = 284.6 / 82.0 (June 2012 Code 0573 / Jan 1986 Code 0573) = 3.4707 Solving for Equation (3) yields:

Ex = 0.54*1.8187 + 0.46*3.4707 = 2.5787 Therefore, solving Equation (1) for parameter values described above yields:

2012 Cost = [$135,000,000]*[0.65*2.3958 + 0.13*2.5787 + 0.22*6.704]

2012 Cost = $454.6 Million