L-11-102, Submittal of the Decommissioning Reports

Submittal of the Decommissioning Reports

ML110950060
Person / Time
Site:	Beaver Valley, Davis Besse, Perry
Issue date:	03/29/2011
From:	Halnon G FirstEnergy Nuclear Operating Co
To:	Document Control Desk, Office of Nuclear Reactor Regulation
References
L-11-102
Download: ML110950060 (13)

Text

FENOC 76 South Main Street FirstEnergyNuclear Operating Company Akron, Ohio 44308 March 29, 2011 L-11-102 10 CFR 50.75 ATTN: Document Control Desk U. S. Nuclear Regulatory Commission Washington, DC 20555-0001

SUBJECT:

Beaver Valley Power Station, Unit Nos. 1 and 2 Docket No. 50-334, License No. DPR-66 Docket No. 50-412, License No. NPF-73 Davis-Besse Nuclear Power Station Docket No. 50-346, License No. NPF-3 Perry Nuclear Power Plant Docket No. 50-440, License No. NPF-58 Submittal of the Decommissioning Reports for Beaver Valley Power Station, Unit Nos. 1 and 2, Davis-Besse Nuclear Power Station, and Perry Nuclear Power Plant Pursuant to 10 CFR 50.75(f)(1), the FirstEnergy Nuclear Operating Company (FENOC),

on behalf of the FirstEnergy Corp., is submitting the enclosed Decommissioning Reports for the Beaver Valley Power Station, Unit Nos. 1 and 2, the Davis-Besse Nuclear Power Station, and the Perry Nuclear Power Plant for the year ending December 31, 2010.

There are no regulatory commitments contained in this letter. If there are any questions, or if additional information is required, please contact Mr. Thomas A. Lentz, Manager - Fleet Licensing, at (330) 761-6071.

Gregory K. Halnon Director, Fleet Regulatory Affairs A cv' lurML

Beaver Valley Power Station, Unit Nos. 1 and 2 Davis-Besse Nuclear Power Station Perry Nuclear Power Plant L-11-102 Page 2 Attachments:

1. Decommissioning Funding Status Report - Beaver Valley Power Station, Unit No. 1

2. Decommissioning Funding Status Report - Beaver Valley Power Station, Unit No. 2

3. Decommissioning Funding Status Report - Davis-Besse Nuclear Power Station

4. Decommissioning Funding Status Report - Perry Nuclear Power Plant cc: NRC Region I Administrator NRC Region III Administrator NRC Resident Inspector (Beaver Valley)

NRC Resident Inspector (Davis-Besse)

NRC Resident Inspector (Perry)

NRC Project Manager (Beaver Valley)

NRC Project Manager (Davis-Besse)

NRC Project Manager (Perry)

Director BRP/DEP Site BRP/DEP Representative Utility Radiological Safety Board

Attachment 1 L-11-102 Decommissioning Funding Status Report - Beaver Valley Power Station, Unit No. 1 Page 1 of 3 This report reflects FirstEnergy Corp.'s consolidated share of ownership interest in Beaver Valley Power Station, Unit No. 1, as of December 31, 2010.

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

(see Schedule 1):

FirstEnergy Nuclear Generation Corp. (FENGenCo) $461,458,231

2. The amount accumulated in external trust funds as of December 31, 2010:

FENGenCo $223,899,740

3. A schedule of the annual amounts over the number of years remaining to be collected from ratepayers:

Amount Remaining $0 Number of years to Collect 0

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

Consolidated Ownership Interest in Unit 100%

"Real" Rate of Return through Dismantlement 2.00%

Year of Final Dismantlement 2043 Year of License Termination 2036

5. There are no contracts upon which the owners/licensees are relying pursuant to 10 CFR 50.75(e)(1)(v).

6. There has been no modification to the current method of providing decommissioning funding assurance since the last submitted report.

7. There have been no material changes to the applicable trust agreement(s) since the last submitted report.

L-11-102 Page 2 of 3

8. FENOC recognizes that a shortfall exists for FENGenCo when the existing trust balances and assumed earnings are compared with the NRC formula amount calculated in Item 1, above. When an existing $15 million Parent Guarantee is included in the calculation, the remaining shortfall is $51,166,749. To resolve the shortfall, FENOC will obtain a Parent Guarantee in accordance with 10 CFR 50.75(b)(2) and (b)(3) within 90 days of the date of this submittal.

9. Mathematical rounding was performed during the development of the supporting calculations.

L- 11-102 Page 3 of 3 Schedule 1 FIRSTENERGY CORP.

Calculation of Minimum Financial Assurance Amount December 31, 2010 BEAVER VALLEY POWER STATION, UNIT No. 1 Pennsylvania Regions Labor (L) = Northeast Energy (E) = National Waste Burial (B) = South Carolina For PWR Unit Adjustment Escalation Factor1 Ratio Factor2 2.454 0.65 1.595 2.263 0.13 0.294 12.280 0.22 2.702 PWR Escalation Factor = 4.591 Base Amount for PWR between 1200 MWt and 3400 MWt = ($75m + 0.0088P)

(P = power level in megawatts thermal = 2900)

($75 + 0.0088(2900)) million = $100,520,000 2

Escalated Amount for unit =

100,520,000 x 4.591 $461,458,231 Owner/Licensee Ownership FirstEnergy Nuclear Generation Corp. 100.00% $461,458,231 Note 1: Actual fourth quarter 2010 Bureau of Labor Statistics data used to develop Labor factor, preliminary December 2010 Bureau of Labor Statistics data used to develop Energy Factor, and Burial factor is based on NUREG-1307, "Report on Waste Burial Charges: Changes in Decommissioning Waste Disposal Costs at Low-Level Waste Burial Facilities," Revision 14 data.

Note 2: Mathematical rounding was performed during the development of the supporting calculations.

Attachment 2 L-11-102 Decommissioning Funding Status Report - Beaver Valley Power Station, Unit No. 2 Page 1 of 3 This report reflects FirstEnergy Corp.'s consolidated share of ownership interest in Beaver Valley Power Station, Unit 2, as of December 31, 2010.

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

(see Schedule 1):

Ohio Edison Company $ 99,951,853 The Toledo Edison Company 84,262,273 FirstEnergy Nuclear Generation Corp. (FENGenCo) 277,244,105 FirstEnergy Consolidated $461,458,231

2. The amount accumulated in external trust funds as of December 31, 2010:

Ohio Edison Company $ 67,523,532 The Toledo Edison Company 75,818,478 FENGenCo 140,594,767 FirstEnergy Consolidated $283,936,777

3. A schedule of the annual amounts over the number of years remaining to be collected from ratepayers:

Amount Remaining $0 Number of years to Collect 0

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

Consolidated Ownership Interest in Unit 100%

"Real" Rate of Return through Dismantlement 2.00%

Year of Final Dismantlement 2054 Year of License Termination 2047

5. There are no contracts upon which the owners/licensees are relying pursuant to 10 CFR 50.75(e)(1)(v).

6. There has been no modification to the current method of providing decommissioning funding assurance since the last submitted report.

L-11-102 Page 2 of 3

7. There have been no material changes to the applicable trust agreement(s) since the last submitted report.

8. Mathematical rounding was performed during the development of the supporting calculations.

L-11-102 Page 3 of 3 Schedule I FIRSTENERGY CORP.

Calculation of Minimum Financial Assurance Amount December 31, 2010 BEAVER VALLEY POWER STATION, UNIT No. 2 Pennsylvania Regions Labor (L) = Northeast Energy (E) = National Waste Burial (B) = South Carolina For PWR Unit Adjustment Escalation Factor1 Ratio Factor2 2.454 0.65 1.595 2.263 0.13 0.294 12.280 0.22 2.702 PWR Escalation Factor = 4.591 Base Amount for PWR between 1200 MWt and 3400 MWt = ($75m + 0.0088P)

(P = power level in megawatts thermal = 2900)

($75 + 0.0088(2900)) million = $100,520,000 Escalated Amount for unit2=

100,520,000 x 4.591 $461,458,231 Owner/Licensee Ownership Ohio Edison Company 21.66% $99,951,853 The Toledo Edison Company 18.26% $84,262,273 FirstEnergy Nuclear Generation Corp. 60.08% $277,244,105 Total FENGenCo $461,458,231 Note 1: Actual fourth quarter 2010 Bureau of Labor Statistics data used to develop Labor factor, preliminary December 2010 Bureau of Labor Statistics data used to develop Energy Factor, and Burial factor is based on NUREG-1307, "Report on Waste Burial Charges: Changes in Decommissioning Waste Disposal Costs at Low-Level Waste Burial Facilities," Revision 14 data.

Note 2: Mathematical rounding was performed during the development of the supporting calculations.

Attachment 3 L-11-102 Decommissioning Funding Status Report - Davis-Besse Nuclear Power Station Page 1 of 2 This report reflects FirstEnergy Corp.'s consolidated share of ownership interest in Davis-Besse Nuclear Power Station as of December 31, 2010.

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

(see Schedule 1):

FirstEnergy Nuclear Generation Corp. (FENGenCo) $449,152,990

2. The amount accumulated in external trust funds as of December 31, 2010:

FENGenCo $429,432,057

3. A schedule of the annual amounts over the number of years remaining to be collected from ratepayers:

Amount Remaining $0 Number of years to Collect 0

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

Consolidated Ownership Interest in Unit 100%

"Real" Rate of Return through Dismantlement 2.00%

Year of Final Dismantlement 2024 Year of License Termination 2017

5. There are no contracts upon which the owners/licensees are relying pursuant to 10 CFR 50.75(e)(1)(v).

6. There has been no modification to the current method of providing decommissioning funding assurance since the last submitted report.

7. There have been no material changes to the applicable trust agreement(s) since the last submitted report.

8. Mathematical rounding was performed during the development of the supporting calculations.

L-11-102 Page 2 of 2 Schedule 1 FIRSTENERGY CORP.

Calculation of Minimum Financial Assurance Amount December 31, 2010 DAVIS-BESSE NUCLEAR POWER STATION Ohio Regions Labor (L) = Midwest Energy (E) = National Waste Burial (B) = South Carolina For PWR Unit Adjustment Escalation Factor1 Ratio Factor2 2.315 0.65 1.505 2.263 0.13 0.294 12.280 0.22 2.702 PWR Escalation Factor = 4.501 Base Amount for PWR between 1200 MWt and 3400 MWt = ($75m + 0.0088P)

(P = power level in megawatts thermal = 2817)

($75 + 0.0088(2817)) million = $ 99,789,600 Escalated Amount for unit2 =

99,789,600 x 4.501 $449,152,990 Owner/Licensee Ownership FirstEnergy Nuclear Generation Corp. 100.00% $449,152,990 Note 1: Actual fourth quarter 2010 Bureau of Labor Statistics data used to develop Labor factor, preliminary December 2010 Bureau of Labor Statistics data used to develop Energy Factor, and Burial factor is based on NUREG-1 307, "Report on Waste Burial Charges: Changes in Decommissioning Waste Disposal Costs at Low-Level Waste Burial Facilities," Revision 14 data.

Note 2: Mathematical rounding was performed during the development of the supporting calculations.

Attachment 4 L-11-102 Decommissioning Funding Status Report - Perry Nuclear Power Plant Page 1 of 3 This report reflects FirstEnergy Corp.'s consolidated share of ownership interest in Perry Nuclear Power Plant as of December 31, 2010.

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

(see Schedule 1):

Ohio Edison Company $ 77,527,713 FirstEnergy Nuclear Generation Corp. (FENGenCo) 538,749,819 FirstEnergy Consolidated $616,277,532

2. The amount accumulated in external trust funds as of December 31, 2010:

Ohio Edison Company $ 59,628,765 FENGenCo 352,612,286 FirstEnergy Consolidated $412,241,052

3. A schedule of the annual amounts over the number of years remaining to be collected from ratepayers:

Amount Remaining $0 Number of years to Collect 0

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

Consolidated Ownership Interest in Unit 100%

"Real" Rate of Return through Dismantlement 2.00%

Year of Final Dismantlement 2033 Year of License Termination 2026

5. There are no contracts upon which the owners/licensees are relying pursuant to 10 CFR 50.75(e)(1)(v).

6. There has been no modification to the current method of providing decommissioning funding assurance since the last submitted report.

7. There have been no material changes to the applicable trust agreement(s) since the last submitted report.

L-11-102 Page 2 of 3

8. FENOC recognizes that a shortfall exists for FENGenCo when the existing trust balances and assumed earnings are compared with the NRC formula amount calculated in Item 1, above. The FENGenCo shortfall is $26,368,895. To resolve the shortfall, FENOC will obtain a Parent Guarantee in accordance with 10 CFR 50.75(b)(2) and (b)(3) within 90 days of the date of this submittal.

9. Mathematical rounding was performed during the development of the supporting calculations.

L-11-102 Page 3 of 3 Schedule I FIRSTENERGY CORP.

Calculation of Minimum Financial Assurance Amount December 31, 2010 PERRY NUCLEAR POWER PLANT Ohio Regions Labor (L) = Midwest Energy (E) = National Waste Burial (B) = South Carolina For BWR Unit Adjustment Escalation Factor1 Ratio Factor2 2.315 0.65 1.505 2.319 0.13 0.301 12.540 0.22 2.759 BWR Escalation Factor = 4.565 Base Amount for BWR greater than 3400 MWt = $135,000,000 Escalated Amount for unit2 =

135,000,000 x 4.565 $616,277,532 Owner/Licensee Ownership Ohio Edison Company 12.58% $ 77,527,713 FirstEnergy Nuclear Generation Corp. 87.42% $538,749,819 Total FENGenCo $616,277,532 Note 1: Actual fourth quarter 2010 Bureau of Labor Statistics data used to develop Labor factor, preliminary December 2010 Bureau of Labor Statistics data used to develop Energy Factor, and Burial factor is based on NUREG-1307, "Report on Waste Burial Charges: Changes in Decommissioning Waste Disposal Costs at Low-Level Waste Burial Facilities," Revision 14 data.

Note 2: Mathematical rounding was performed during the development of the supporting calculations.