L-17-028, Submittal of the Decommissioning Funding Status Reports
| ML17083B221 | |
| Person / Time | |
|---|---|
| Site: | Beaver Valley, Davis Besse, Perry |
| Issue date: | 03/24/2017 |
| From: | Halnon G FirstEnergy Nuclear Operating Co |
| To: | Document Control Desk, Office of Nuclear Reactor Regulation |
| References | |
| L-17-028 | |
| Download: ML17083B221 (15) | |
Text
FENOC ffi 341 White Pond Dr.
Akron. Ohio 44320 March 24,2017 L-17-028 10 cFR 50.75 ATTN: Document Controf 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-O6 Docket No. 50-412,License No. NPF-23 Davis-Besse Nuclear Power Station Docket No. 50-346, License No. NPF-3 Perry Nuclear Power Plant Docket No. 50440, License No. NPF-58 Submittal of the Decommissioninq Fundino Status Reports for Beaver Valley Power Station. Unit Nos. 1 and 2. Davis-Besse Nuclear Power Station. and Perry Nuclear Power Plant In accordance with 10 CFR 50.75, "Reporting and recordkeeping for decommissioning planning,"
paragraph (fX1), FirstEnergy Nuclear Operating Company (FENOC) is submitting the decommissioning funding status reports for Beaver Valley Power Station, Unit Nos. 1 (BVPS-1) and 2 (BVPS-2);
Davis-Besse Nuclear Power Station (DBNPS);
and Perry Nuclear Power Plant (PNPP) for the year ending December 31,2016. The reports are contained in Attachments 1 through 4, respectively.
In accordance with 10 CFR 50.75(b) and 10 CFR 50.75(e),
the estimated cost of decommissioning can be based on either the Nuclear Regulatory Commission (NRC) formula cost amount calculated in accordance with 10 CFR 50.75(c) or a site-specific decommissioning cost estimate. The BVPS-1 decommissioning cost estimate is based on the site-specific decommissioning cost estimate that was contained in letter dated March 31,2015 (Accession No. ML15090A447).
The site-specific cost estimate is based on a period of safe storage that is described in the estimate.
Beaver Valley Power Station, Unit Nos. 1 and 2 Davis-Besse Nuclear Power Station Perry Nuclear Power Plant L-17-028 Page 2 FENOC has not made a final determination on the decommissioning approach for any of the listed nuclear units. FENOC may select a different decommissioning option in the future for any of the listed nuclear units, recognizing that the chosen option must meet NRC requirements'for decommissioning funding.
There are no regulatory commitments contained in this letter. lf there are any questions, or if additional information is required, please contact Mr. Thomas A. Lentz, Manager
- Fleet Licensing, at (330) 315-6810.
Vice President, Regulatory Affairs and Laboratory Services 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 NRC Region I Administrator NRC Region lll 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 Gregorfff Halnon
Attachrnent 1
L-17-028 Decommissioning Funding Status Report - Beaver Valley Power Station, Unit No. 1 Page 1 of 6 This report reflects FirstEnergy Corp.'s consolidated share of ownership interest in Beaver Valley Power Station, Unit No. 1, as of December 31,2016.
- 1. The minimum decommissioning fund estimate, pursuant to 10 CFR 50.75(c)
(see Schedule 1):
FirstEnergy Nuclear Generation, LLC
- 2. The amount accumulated in external trust funds:
$481,892,880 FirstEnergy Nuctear Generation, LLc tH;il,306 There are no longer any funds to be collected from the ratepayers.
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 2.00o/o Year of License Termination 2036
- 5. There are no contracts upon which the owners/licensees are relying pursuant to 10 CFR 50.75(eX1Xv).
There has been no modification to the current method of providing decommissioning funding assurance since the last submitted report.
There have been no material changes to the applicable trust agreement(s) since the last submitted report.
Mathematical rounding was performed during the development of the supporting calculations.
3.
4.
6.
7.
8.
L-17-028 Page 2 of 6
- 9. Site-Specific Cost Analysis 10 CFR 50.75(eX1Xi),
states, in part, that:
A licensee that has prepaid funds based on a site-specific estimate under S 50.75(bX1) of this section may take credit for prolected 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.
In accordance with Regulatory Guide (RG) 1.159, Revision2, a facility specific analysis may be used to demonstrate the adequacy of decommissioning
- funds, provided that:
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(cX1) and (2).
Schedule 2 provides a FENOC analysis that provides cash flows based on the site-specific decommissioning cost estimate that includes the use of a safe storage period.
The analysis is associated with the costs for the radiological decommissioning of the facility. The cash flow analysis assumes the yearly expenses are incurred at the beginning of year. A two percent yearly rate of return was assumed.
As a result of this analysis, FENOC has determined that there is reasonable assurance that adequate decommissioning funds will be available for the decommissioning process in compliance with NRC decommissioning funding assu rance reg u lations.
- 10. References.
A. Decommissioning Cosf Analysis for the Beaver Valley Power Station, December 2014.
L-17-028 Page 3 of 6 Schedule 1 FIRSTENERGY CORP.
Calculation of Minimum Financial Assurance Amount December 31, 2016 BEAVER VALLEY POWER STATION, UNIT No. 1 Pennsvlvania Regions Labor (L) = Northeast Energy (E) = National Waste Burial (B) = Generic For PWR Unit Adjustment Factor Ratio Escalation Factorl l_=
f=
$=
2.780 1.870 12.471 4.794 0.65 0.13 0.22 1.807 0.243 2.744 PWR Escalation Factor =
4.794 Base Amount for PWR between 1200 MWt and 3400 MWt = ($75m + 0.0088P)
(P = power level in megawatts thermal = 2900)
($ZS + 0.0088(2900))
million
=
$100,520,000 Escalated Amount for unitl =
100,520,000 x
Owner/Licensee FirstEnergy Nuclear Generation, LLC
$49t,892,880 Ownership 100.00% $481,892,880 Note 1: Mathematical rounding was performed during the development of the supporting calculations L-17-028 Page 4 of 6 Schedule 2
Calculation of a Site-Specific Cash Flow Analysis December 31,2016 Beaver Valley Power Station, Unit No. 1 The site-specific cost estimate for the radiological decommissioning of the Beaver Valley PowerStation, Unit No. 1 is $711,726,383.
The minimum decommissioning fund estimate, pursuant to 10 CFR 50.75(c) is $a81,892,880.
Since RG 1.159 states that the site-specific cost should be equal to or greater than the cost calculated by 10 CFR 50.75(c),
the RG is satisfied.
A two percent rate of return was used in the analysis. The analysis also assumes a period of safe storage. These inputs to the analysis are consistentwith 10 CFR 50.75(eX1) The analysis is based on 2016 dollars.
The analysis contains expenses based on the site-specific decommissioning cost estimate. The analysis conservatively assumes that expenses during a year are incurred at the beginning of year. Mathematical rounding was performed during the development of the supporting calculations.
Year Beginning Balance Deposits Earninqs Withdrawall'2 Ending Balance 2017 286,595,306 5.731.906 292.327.212 2018 292,327,212 5,846,544 298,173,756 2019 298,173,756 5,963,475 304,137,231 2020 304.1 37.231 6.082.745 310,219,976 2021 310,219.976 6.204.400 316.424.376 2022 316,424,376 6,328,488 322,752,863 2023 322,752,863 6,455,057 329,207,920 2024 329,207.920 6,584,158 335,792,079 2025 335.792.079 6.715.842 342,507,920 2026 342.507.920 6,850,158 349,358,079 2027 349,358,079 6,987,162 356,345,240 2028 356,345,240 7,126,905 363,472,145 2029 363.472.145 7.269.443 370.741,588 2030 70,741,588 7.414.832 378,156,420 2031 378.1 56.420 7,563,128 385,719,548 2032 385,719,548 7,714,391 393,433,939 2033 393.433.939 7.868.679 401,302,618 2034 401.302.618 8,026,052 409.328.670 2035 409.328.670 8,186,573 417.515.244 2036 417,515,244 7,298,033 (52.613.575) 372,199,702 2037 372.199.702 6.363.388 (54.030.281) 324,532,809 2038 324.532.809 6.412.986 (3,883,529) 327.062.266 2039 327,062,266 6,463,575 (3,883,529) 329.642.312 2040 329,642,312 6,514,964 (3.894.093) 332,263,183 L-17-028 Page 5 of 6 Year Beginning Balance Deposits Earnings Withdrawall,2 Ending Balance 2041 332,263,183 6,567,593 (3,883,529) 334,947,247 2042 334.947.247 6.621.274 (3,883,529) 337,684,992 2043 337,684,992 6.682.305 (3,569,762) 340.797.535 2044 340,797,535 6,744,894 (3.552.858) 343,989,571 2045 343,989,571 6,808,924 (3.543.350) 347,255,145 2046 347.255.145 6.874.236 (3,543,350) 350,586,030 2047 350.586.030 6.940.854 (3,543,350) 353.983.534 2048 353.983.534 7.008.614 (3,552,858) 357.439.289 2049 357,439,299 7,077,919 (3.543.350) 360,973,857 2050 360,973,857 7,148,610 (3,543.350) 364,579,117 2051 364.579.117 7.220.715 (3.543.350) 368,256,482 2052 368.256.482 7.294.072 (3,552,858) 371.997.696 2053 371,997,696 7.369,087 (3,543,350) 375.823.433 2054 375,823,433 7,445,602 (3.543.350) 379,725,684 2055 379.725.684 7.523.647 (3.543,350) 383,705,981 2056 383.705.981 7.603.062 (3,552,958) 387.756.185 2057 387,756,195 7,684,257 (3,543,350) 391,897,091 2058 391,897,091 7,767,075 (3.543.350) 396,120,816 2059 396,120,816 7,851,549 (3.543.350) 400,429,015 2060 400,429,415 7.937.523 (3,552,858) 404,813,679 2061 404.813.679 8.025.407 (3,543,350) 409,295,736 2062 409,295,736 8,115,048 (3,543,350) 413,867,433 2063 413,867,433 8,206,482 (3.543.350) 418,530,564 2064 418,530,564 8.299.554 (3,552,958) 423,277,260 2065 423.277.260 8.394.678 (3,543,350) 428.128.588 2066 428,128,599 8,491,705 (3,543,350) 433.076.942 2067 433,076,942 8,590,672 (3.543.350) 438,124,264 2068 438,124,264 8,691,428 (3.552.858) 443,262,834 2069 443.262.834 8.794.390 (3,543,350) 448,513,873 2070 448.513.873 8,899,410 (3,543,350) 453.869.933 207 1 453,869,933 9,006,532 (3,543,350) 459,333,1 15 2072 459,333,115 9,115,605 (3.552.858) 464,895,861 2073 464,895,861 9.227.050 (3.543.350) 470,579,561 2074 470.579.561 9.340.724 (3,543,350) 476.376.935 2075 476.376.935 9.456.672 (3,543,350) 482,290,257 2076 482,290,257 9,572,107 (3.684.915) 488.177
,448 2077 488,177.448 9.690.062 (3.674.351) 494,193,159 2078 494,193,159 9.810.376 (3,674.351) 500.329.185 2079 500.329.185 9.933.097 (3,674,351) 506.587.931 2080 506,587,931 10,058,060 (3.684.915) 512,961,076 L-17-028 Page 6 of 6 Notes:
1. Reflects the SAFSTOR method described in Reference A.
- 2. Withdrawals assumed to be made at beginning of period Year Beginning Balance Deposits Earnings Withdrawalt'2 Ending Balance 2081 512,961,076 10.185.735 (3.674.351) 519,472,460 2082 519,472,460 10.315.962 (3,674,351) 526.114.071 2083 526,114,071 10,448.794 (3,674,351) 532.888.515 2084 532,888,515 10,584,072 (3,684,915) 539,787,672 2085 539,787,672 10,722,266 (3.674.351) 546,835,587 2086 546.835.587 10.863.225 (3,674,351) 554,024,461 2087 554,024,461 11.007.002 (3,674,351) 561.357.1 13 2088 561,357,113 11,073,407 (7,686,767) 564,743,753 2089 564,743,753 10,349,453
@7.271.082) 527,822,124 2090 527.822.124 8.314.370 n12.1 03.616) 424,032,878 2091 424.032.878 6.168.859 (115,589,918)314,611,819 2092 314,611,819 4,995,163 (64,853,664) 254,753,319 2093 254.753,319 4,127,839 (48.361.344\\
210,519,814 2094 210,519,814 4,144,727 rc.283.4621 211,381,079 2095 211,381.079 3.765.634 (23,099,390) 192,047,323 2096 192.047.323 3,798,456 (2,124,531) 193.721.248 2097 193,721,248 3,871,953 (123,605) 197.469.595 (711.726.383)
Attachment 2
L-17-028 Decommissioning Funding Status Report - Beaver Valley Power Station, Unit No. 2 Page 1 of 2 This report reflects FirstEnergy Corp.'s consolidated share of ownership interest in Beaver Valley Power Station, Unit No. 2, as of December 31,2016.
- 1. The minimum decommissioning fund estimate, pursuant to 10 CFR 50.75(c)
(see Schedule 1).
?il",:fl:Tf,?$lTLpany FirstEnergy Nuclear Generation, LLC FirstEnergy Consolidated
- 2. The amount accumulated in external trust funds:
ohio Edison company TTIIS[,uro The Toledo Edison Company 92,776,208 FirstEnergy Nuclear Generation, LLC 191,417
,814 FirstEnergy Consolidated 5378J02,702 There are no longer any funds to be collected from the ratepayers.
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:
3.
4.
$104,377,998 87,993,640 289.521,242
$481,892,880 1A0o/o 2.04o/o 2047 Consolidated Ownership Interest in Unit "Real" Rate of Return through Dismantlement Year of License Termination 5.
6.
7.
8.
There are no contracts upon which the owners/licensees are relying pursuant to 10 cFR 50.75(eX1Xv).
There has been no modification to the current method of providing decommissioning funding assurance since the last submitted report.
There have been no material changes to the applicable trust agreement(s) since the last submitted report.
Mathematical rounding was performed during the development of the supporting calculations.
L-17-028 Page 2 of 2 Schedule 1 FIRSTENERGY CORP.
Calculation of Minimum Financial Assurance Amount December 31,2016 BEAVER VALLEY POWER STATION, UNIT No. 2 Pennsvlvania Regions Labor (L) = Northeast Energy (E) = National Waste Burial (B) = Generic For PWR Unit Adjustment Factor Escalation Ratio Factorl l- =
2.780 f =
1.870
$ =
12.471 PWR Escalation Factor =
4.794
=
0.65 0.1 3 0.22
$104,377,998
$87,993,640
$481,892,880 1.807 0.243 2.744 4.794 Base Amount for PWR between 1200 MWt and 3400 MWt = ($75m + 0.0088P)
(P = power level in megawatts thermal = 2900)
$100,520,000
($ZS + 0.0088(2900))
million
=
Escalated Amount for unitl=
100,520,000 x
Owner/Licensee Ohio Edison Companyl The Toledo Edison Companyl FirstEnergy Nuclear Generation, LLCl Total FirstEnergy Consolidatedl Ownership 21.660/o 18.26%
60.08%
$289,521
,242
$481,892,880 Note 1: Mathematical rounding was performed during the development of the supporting calculations.
Attachment 3
L-17-028 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 31,2A16.
1. The minimum decommissioning fund estimate, pursuant to 10 CFR 50.75(c)
(see Schedule 1):
FirstEnergy Nuclear Generation, LLC
- 2. The amount accumulated in external trust funds:
$467,414,486 FirstEnergy Nuclear Generation, LLC After-Tax
$552,423,474 There are no longer any funds to be collected from the ratepayers.
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:
3.
4.
Consolidated Ownership Interest in Unit "Real" Rate of Return through Dismantlement Year of License Termination 100%
2.00o/o 2037 5.
6.
There are no contracts upon which the owners/licensees are relying pursuant to 10 CFR 50.75(eX1Xv).
There has been no modification to the current method of providing decommissioning funding assurance since the last submitted report.
There have been no material changes to the applicable trust agreement(s) since the last submitted report.
Mathematical rounding was performed during the development of the supporting calculations.
7.
8.
L-17-028 Page 2 of 2 Schedule 1 FIRSTENERGY CORP.
Calculation of Minimum Financial Assurance Amount December 31, 2016 DAVIS.BESSE NUCLEAR POWER STATION Ohio Resions Labor (L) = Midwest Energy (E) = National Waste Burial (B) = Generic For PWR Unit Adjustment Factor Ratio Escalation Factorl l_=
f=
$=
2.610 1.870 12.471 4.684 0.65 0.1 3 0.22 1.697 0.243 2.744 PWR Escalation Factor =
4.684 Base Amount for PWR between 1200 MWt and 3400 MWt = ($75m + 0.0088P)
(P = power level in megawatts thermal = 2817)
($ZS + 0.0088(2817))
million
=
$ 99,789,600 Escalated Amount for unitl =
99,789,600 x
Owner/Licensee FirstEnergy Nuclear Generation, LLC
$467,414,486 Ownership 100.00% $467,414,486 Note 1: Mathematical rounding was performed during the development of the supporting calculations.
L-17-028 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 31,2016.
- 1. The minimum decommissioning fund estimate, pursuant to 10 CFR 50.75(c)
(see Schedule 1):
FirstEnergy Nuclear Generation, LLC
- 2. The amount accumulated in external trust funds.
$651,91 5,000 FirstEnergy Nuclear Generation, LLC After-Tax
$515.467.559 There are no longer any funds to be collected from the ratepayers.
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:
3.
4.
Consolidated Ownership Interest in Unit "Real" Rate of Return through Dismantlement Year of License Termination 100%
2.00o/o 2026 5.
6.
There are no contracts upon which the owners/licensees are relying pursuant to 10 CFR 50.75(eX1Xv).
There has been no modification to the current method of providing decommissioning funding assurance since the last submitted report. However, adequate financial assurance using the prepayment method is now demonstrated using the NRC's minimum formula amount, rather than using a SAFSTOR analysis based upon a site specific estimate.
There have been no material changes to the applicable trust agreement(s) since the last submitted report, except that the funds formerly held by Ohio Edison Company under the terms of its trust agreement were transferred to the FirstEnergy Nuclear Generation, LLC trust and are now maintained under the terms of that trust agreement.
The Ohio Edison Company trust agreement is no longer applicable to Perry. By order dated April 15,2016, the NRC approved the direct transfer of the leased interests in the Perry Nuclear Power Plant, Unit 1, from the Ohio Edison Company to FirstEnergy Nuclear Generation, LLC (Accession No. ML16078A092).
7.
Attachment 4
L-17-028 Decommissioning Funding Status Report - Perry Nuclear Power Plant Page 2 of 3
- 8. Mathematical rounding was performed during the development of the supporting calculations.
Attachment 4
L-17-028 Page 3 of 3 Schedule 1 FIRSTENERGY CORP.
Calculation of Minimum Financial Assurance Amount December 31,2016 PERRY NUCLEAR POWER PLANT Ohio Resions Labor (L) = Midwest Energy (E) = National Waste Burial (B) = Generic For BWR Unit Adjustment Factor 2.610 1.869 13.132 BWR Escalation Factor =
Base Amount for BWR greater than 3400 MWt =
(P = power level in megawatts thermal = 3758)
Escalated Amount for unitl =
135,000,000 x
Owner/Licensee FirstEnergy Nuclear Generation, LLC 4.829 Ownership 100.00% $651,915,000 Ratio Escalation Factorl l=
f=
$=
0.65 0.1 3 0.22 1.697 0.243 2.889 4.829
$135,000,000
$est,915,000 Note 1: Mathematical rounding was performed during the development of the supporting calculation