L-03-034, Decommissioning Reports for Beaver Valley Power Station, Units 1 & 2

Decommissioning Reports for Beaver Valley Power Station, Units 1 & 2

ML030840101
Person / Time
Site:	Beaver Valley
Issue date:	03/21/2003
From:	Saunders R FirstEnergy Nuclear Operating Co
To:	Document Control Desk, Office of Nuclear Reactor Regulation
References
L-03-034
Download: ML030840101 (11)

Text

FENOC 76 South Main Street Akron, Ohio 44308 FirstEnergy Nuclear OperatingCompany Robert F. Saunders 330-384-2415 President Fax 330-384-5909 March 21,2003 CERTIFIED MAIL Return Receipt Requested Letter Number: L-03-034 (Beaver Valley)

United States Nuclear Regulatory Commission Document Control Desk Washington, D C. 20555-0001 Beaver Valley Power Station, Unit 1 Docket No. 50-334 Beaver Valley Power Station, Unit 2 Docket No. 50-412 RE- Decommissioning Reports for the Beaver Valley Power Station, Units I and 2 Ladies and Gentlemen Pursuant to 10 CFR 50.75(f)(1), FirstEnergy Corp. is hereby submitting the Decommissioning Reports for the Beaver Valley Power Station, Units 1 and 2 for the year ending December 31, 2002.

If you have questions or require additional information, please contact Mr. R. Terry Conlin, Sr. Business Analyst at 330-384-4605.

Very truly yours, Robert F. Saunders President Attachments cc: NRC Region I Administrator NRC Resident Inspector for Beaver Valley Power Station NRC Project Manager for Beaver Valley Power Station Frank Lipchick - Beaver Valley Power Station R. I. Parrish - FE Reading M. E. O'Reilly (w/o attachments)

E J. Sitarz (w/o attachments)

D C Perrine (w/o attachments) "--/ *{*  ;

NRC Decommissioning Funding Status Report Beaver Valley Power Station Unit 1 I As of December 31, 2002 (Noie: This report reflects FirstEnergy Corp.'s consolidated share of ownership interest in Beaver Valley Power Station Unit 1).

1. The minimum decommissioning fund estimate, pursuant to 10 CFR 50.75(b) and (c) (see Schedule 1):

Ohio Edison Company $120,137,245 Pennsylvania Power Company 223,112,028 FirstEnergy Consolidated $343,249,273

2. The amount accumulated in external trust funds at December 31, 2002:

Ohio Edison Company $ 63,333,737 Pennsylvania Power Company 90,741,862 FirstEnergy Consolidated $154,075,592

3. A schedule of the annual amounts over the number of years remaining to be collected from ratepayers is attached as Schedule 2.

4. The assumptions used regarding escalation in decommissioning cost, rates of earnings on decommissioning funds, and rates of other factors used in funding projections:

Consolidated Ownership Interest in Unit 100%

Funds Earnings Rate through Dismantlement 5.86%

Decommissioning Cost Inflation Rate 3.86%

Year of License Termination 2016 Safestor Period 2016-2029 Year of Final Dismantlement 2035

5. There are no contracts upon which FirstEnergy Corp. is relying pursuant to 10 CFR 50.75(e)(1)(v).

6. Due to the passage of the Pennsylvania Electricity Generation Customer Choice and Competition Act and the Ohio Electric Utility Industry Restructuring Bill, FirstEnergy Corp.'s subsidiaries, Pennsylvania Power Company and Ohio Edison Company, have accelerated the timing of the contributions to the external trust. The contributions pertaining to the Pennsylvania Public Utility Commission and Public Utility Commission of Ohio will be collected from ratepayers through 2005, while contributions pertaining to FERC will be collected through January 2016.

7. There were no material changes with respect to the trust agreements during the year ended December 31, 2002.

Schedule 1 Page 1 of 2 OHIO EDISON COMPANY Calculation of Minimum Financial Assurance Amount for December 2002 BEAVER VALLEY NUCLEAR POWER PLANT UNIT ONE Pennsylvania Regions Labor (L) = Northeast Energy (E) = National Waste Burial (B) = South Carolina For PWR Unit Adjustment Escalation Factor Ratio Factor 1.920 0.65 1.248 1.140 0.13 0.148 9.467 0.22 2.083 PWR Escalation Factor = 3.479 Base Amount for PWR between 1200 MWt and 3400 MWt = ($75m + 0.0088P)

(P = power level in megawatts thermal = 2,689)

$98,663,200

($75 + 0.0088(2,689)) million =

Escalated Amount for unit = 98,663,200 x 3.479 = $343,249,273 Escalated Amount for Ohio Edison Company's ownership interest (35%) in the unit:

$343,249,273 x 35% = $120,137,2.45 for December 2002

Schedule 1 Page 2 of 2 PENNSYLVANIA POWER COMPANY Calculation of Minimum Financial Assurance Amount for December 2002 BEAVER VALLEY NUCLEAR POWER PLANT UNIT ONE Pennsylvania Regions Labor (L) = Northeast Energy (E) = National Waste Burial (B) = South Carolina For PWR Unit Adjustment Escalation Factor Ratio Factor 1.920 0.65 1.248 1.140 0.13 0.148 9.467 0.22 2.083 3.479 PWR Escalation Factor =

Base Amount for PWR between 1200 MWt and 3400 MWt = ($75m + 0.0088P)

(P = power level in megawatts thermal = 2,689)

$98,663,200

($75 + 0.0088(2,689)) million =

Escalated Amount for unit = 98,663,200 x 3.479 = $343,249,273 Escalated Amount for Penn Power Company's ownership interest (65%) in the unit:

$343,249,273 x 65.0% $223,112,I028 for December 2002

Schedule 2 Page 1 of 1 NRC Decommissioning Funding Status Report Schedule of Annual Amounts Remaining to be Collected FirstEnergy Corp.

Beaver Valley 1 Annual Amounts Collected Ohio Pennsylvania FirstEnergy Year Edison Power Consolidated 2003 6,646,359 82, 3,280 7,469,639 2004 6,646,359 82"3,280 7,469,639 2005 6,646,359 82, 3,280 7,469,639 2006 83,092 3,280 91,372 2007 83,092 3,280 91,372 2008 83,092 3,280 91,372 2009 83,092 3,280 91,372 2010 83,092 8,280 91,372 2011 83,092 8,280 91,372 2012 83,092 8,280 91,372 2013 83,092 8,280 91,372 2014 83,092 8,280 91,372 2015 83,092 8,280 91,372 2016 6,924 690 7,614 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 Total 20,776,921 2,553,330 23,330,251

NRC Decommissioning Funding Status Report Beaver Valley Nuclear Power Station Unit 2 As of December 31, 2002 (Note: This report reflects FirstEnergy Corp.'s consolidated share of ownership interest in Beaver Valley Nuclear Power Station Unit 2).

1. The minimum decommissioning fund estimate, pursuant to 10 CFR 50.75(b) and (c) (See Schedule 1):

Ohio Edison Company $143,752,796 Pennsylvania Power Company 47,162,450 Cleveland Electric Illuminating Company 83,993,097 Toledo Edison Company 68,340,930 FirstEnergy Consolidated $343,249,273

2. The amount accumulated in external trust funds at December 31, 2002:

Ohio Edison Company $ 51,220,408 Pennsylvania Power Company 22,579,385 Cleveland Electric Illuminating Company 28,107,943 Toledo Edison Company 39,014,813 FirstEnergy Consolidated $140,922,549

3. A schedule of the annual amounts over the number of years remaining to be collected from ratepayers is attached as Schedule 2.

4. The assumptions used regarding escalation in decommissioning cost, rates of earnings on decommissioning funds, and rates of other factors used in funding projections:

Consolidated FirstEnergy Ownership 100%

Funds Earnings Rate through Dismantlement 5.78%

Decommissioning Cost Inflation Rate 3.78%

Year of License Termination 2027 Year of Final Dismantlement 2035

5. There are no contracts upon which FirstEnergy Corp. is relying pursuant to 10 CFR 50.75(e)(1)(v).

6. Due to the passage of the Ohio Electric Utility Industry Restructuring Bill, FirstEnergy Corp.'s subsidiaries, Ohio Edison Company, Cleveland Electric Illuminating Company, and Toledo Edison Company, have accelerated the timing of the contributions to the external trust. The contributions pertaining to Public Utility Commission of Ohio will be collected from ratepayers through 2005, while Ohio Edison and Toledo Edison contributions pertaining to FERC will be collected through May 2027.

7. There were no material changes with respect to the trust agreements during the year ended December 31, 2002.

Schedule 1 Page 1 of 4 OHIO EDISON COMPANY Calculation of Minimum Financial Assurance Amount for December 2002 BEAVER VALLEY NUCLEAR POWER STATION UNIT TWO Pennsylvania Regions Labor (L) = Northeast Energy (E) = National Waste Burial (B) = South Carolina For PWR Unit Adjustment Escalation Factor Ratio Factor L 1.920 0.65 1.248 E= 1.140 0.13 0.148 B= 9.467 0.22 2.083 PWR Escalation Factor = 3.479 Base Amount for PWR between 1200 MWt and 3400 MWt = ($75m + 0.0088P)

(P = power level in megawatts thermal = 2,689)

($75 + 0.0088(2,689)) million = $98,663,200 Escalated Amount for unit = 98,663,200; 3.479 = $343,249,273 Escalated Amount for Ohio Edison Company's ownership interest (41.88 %) in the unit:

$343,249,273 x 41.88% = $143,752,796 fo r December 2002

Schedule 1 Page 2 of 4 CLEVELAND ELECTRIC ILLUMINATING COMPANY Calculation of Minimum Financial Assurance Amount December 31, 2002 BEAVER VALLEY NUCLEAR POWER STATION UNIT TWO Pennsylvania Regions Labor (L) = Northeast Energy (E) = National Waste Burial (B) = South Carolina For PWR Unit Adjustment Escalation Factor Ratio Factor 1.920 0.65 1.248 1.140 0.13 0.148 9.467 0.22 2.083 PWR Escalation Factor = 3.479 Base Amount for PWR between 1200 MWt and 3400 MWt = ($75m + 0.0088P)

(P = power level in megawatts thermal = 2,689)

($75 + 0.0088(2,689)) million = $98,663,200 Escalated Amount for unit = 98,663,200) 3.479 = $343,249,273 Escalated Amount for Cleveland Electric Illuminating Company's ownership interest (24.47 %) in the unit:

$343,249,273 x 24.47% = $83,993,097 for Diecember 2002

Schedule 1 Page 3 of 4 TOLEDO EDISON COMPANY Calculation of Minimum Financial Assurance Amount for December 2002 BEAVER VALLEY NUCLEAR POWER STATION UNIT TWO Pennsylvania Regions Labor (L) = Northeast Energy (E) = National Waste Burial (B) = South Carolina For PWR Unit Adjustment Escalation Factor Ratio Factor 1.920 0.65 1.248 1.140 0.13 0.148 9.467 0.22 2.083 PWR Escalation Factor = 3.479 Base Amount for PWR between 1200 MWt and 3400 MWt ($75m + 0.0088P)

(P = power level in megawatts thermal = 2,689)

($75 + 0.0088(2,689)) million = $98,663,200 Escalated Amount for unit = 98,663,200 x 3.479 = $343,249,273 Escalated Amount for Toledo Edison Company's ownership interest (19.91 %) in the unit

$343,249,273 x 19.91% - $68,340,930 for December 2002

Schedule 1 Page 4 of 4 PENNSYLVANIA POWER COMPANY Calculation of Minimum Financial Assurance Amount for December 2002 BEAVER VALLEY NUCLEAR POWER STATION UNIT TWO Pennsylvania Regions Labor (L) = Northeast Energy (E) = National Waste Burial (B) = South Carolina For PWR Unit Adjustment Escalation Factor Ratio Factor 1.920 0.65 1.248 1.140 0.13 0.148 9.467 0.22 2.083 PWR Escalation Factor = 3 479 Base Amount for PWR between 1200 MWt and 3400 MWt = ($75m + 0.0088P)

(P = power level in megawatts thermal = 2,689)

($75 + 0.0088(2,689)) million = $98,663,200 Escalated Amount for unit = 98,663,200 x 3.479 = $343,249,273 Escalated Amount for Pennsylvania Power Company's ownership interest (13.74%) in the unit:

$343,249,273 x 13.74% $47,162, 450 for December 2002

Schedule 2 Page 1 of 1 NRC Decommissioning Funding Status Report Schedule of Annual Amounts Remaining to be Collected FirstEnergy Corp.

Beaver Valley 2 Annual Amounts Collected Ohio Cleveland Toledo Pennsylvania FirstEnergy Year Edison Electric Edison Power Consolidated 2003 10,106,510 4,120,742 7,988,075 22,215,327 2004 10,106,510 4,120,742 7,988,075 22,215,327 2005 10,106,510 4,120,742 7,988,075 22,215,327 2006 222,024 56,101 278,125 2007 222,024 56,101 278,125 2008 222,024 56,101 278,125 2009 222,024 56,101 278,125 2010 222,024 56,101 278,125 2011 222,024 56,101 278,125 2012 222,024 56,101 278,125 2013 222,024 56,101 278,125 2014 222,024 56,101 278,125 2015 222,024 56,101 278,125 2016 222,024 56,101 278,125 2017 222,024 56,101 278,125 2018 222,024 56,101 278,125 2019 222,024 56,101 278,125 2020 222,024 56,101 278,125 2021 222,024 56,101 278,125 2022 222,024 56,101 278,125 2023 222,024 56,101 278,125 2024 222,024 56,101 278,125 2025 222,024 56,101 278,125 2026 222,024 56,101 278,125 2027 92,510 23,498 116,008 2028 2029 2030 2031 2032 2033 2034 2035 2036 Total 35,074,544 12,362,226 25,165,844 - 72,602,614