L-2009-207, Units 1 & 2, Update to Decommissioning Funding Status and Financial Assurance Plan

Units 1 & 2, Update to Decommissioning Funding Status and Financial Assurance Plan

ML092580090
Person / Time
Site:	Point Beach, Duane Arnold
Issue date:	09/11/2009
From:	Nazar M Florida Power & Light Co
To:	Document Control Desk, Office of Nuclear Reactor Regulation
References
L-2009-207
Download: ML092580090 (6)

Text

FPL Florida Power & Light Company, 700 Universe Boulevard, P.O. Box 14000, Juno Beach, FL 33408-0420 September 11, 2009 L-2009-207 10 CFR 50.4 10 CFR 50.75 U.S. Nuclear Regulatory Commission Attn: Document Control Desk Washington, DC 20555 Re:

NextEra Enerqy Duane Arnold, LLC Duane Arnold Energy Center Docket No. 50-331 NextEra Enerqy Point Beach, LLC Point Beach Nuclear Plant, Units 1 and 2 Docket Nos. 50-266, 50-301

Subject:

Update to Decommissioning Funding Status and Financial Assurance Plan The purpose of this letter is (1) for the above-referenced NextEra Energy project companies to provide updated information to the Nuclear Regulatory Commission (NRC) that was requested during a telephone conference on June 30, 2009, regarding the decommissioning funding status for NextEra Energy's ownership interests in the Duane Arnold Energy Center (DAEC) and the Point Beach Nuclear Plant, Units 1 and 2 (PBNP); and (2) to change the Financial Assurance Plan for PBNP that was described in NextEra letter L-2009-172 dated July 27, 2009.

A.

NextERA Interests in DAEC and PBNP

1.

Decommissioning Funding Status for NextEra Interests in DAEC and PBNP As of August 31, 2009, the following is the decommissioning funding status for the subject NextEra Energy nuclear plants:'

DAEC (70% ownership interest)

Present value of NRC Minimum Calculation pursuant to 10 CFR 50.75:

$301,853,975 Trust Balance as of August 31, 2009:

$179,995,139

($121,858,837)

Funding Difference:

1 In calculating the funding status for the NextEra Energy nuclear plants, NextEra has used the same methodology used in (then) FPL Energy's license transfer applications for DAEC (2005) and PBNP (2007).

an FPL Group company

U.S. Nuclear Regulatory Commission L-2009-207 Page 2 PBNP Unit 1 (100% ownership interest)

Present value of NRC Minimum Calculation pursuant to 10 CFR 50.75:

$210,690,052 Trust Balance as of August 31, 2009:

$215,515,628 Funding Difference:

$4,825,576 PBNP Unit 2 (100% ownership interest)

Present value of NRC Minimum Calculation pursuant to 10 CFR 50.75:

$200,812,877 Trust Balance as of August 31, 2009:

$203,065,522 Funding Difference:

$2,252,645

2.

Changes to Proposed Decommissioning Financial Assurance Plans for NextEra Interests in PBNP and DAEC By letter L-2009-172 dated July 27, 2009, NextEra proposed a plan to NRC to address the funding difference for PBNP Units 1 and 2.

At that time, NextEra's proposed plan involved causing its indirect parent company, FPL Group Capital Inc, to issue a decommissioning funding parent guaranty for each of the PBNP units for the difference between the adjusted value of the decommissioning funds on hand and the NRC formula minimum amount required by NRC regulations. Since that date, the funding differences for the PBNP decommissioning trusts have become positive due to earnings on those funds. Accordingly, the NextEra decommissioning trust funds no longer require the form of funding assurance proposed to NRC, and NextEra hereby withdraws its financial assurance plan proposed in the July 27, 2009 letter.

With respect to DAEC, NextEra is not changing its proposed funding plan - which involves amending the existing parent guaranty for decommissioning funding for DAEC - other than to clarify that the amount of the amended parent guaranty will be based on the trust fund balance as of November 30, 2009.

The detailed calculations supporting NextEra's conclusions regarding the NRC formula amounts and the adjusted trust fund balances as of August 31, 2009 are set forth in the Enclosures to this letter (Enclosure 1 for DAEC; Enclosure 2 for PBNP Unit 1; and Enclosure 3 for PBNP Unit 2).

U.S. Nuclear Regulatory Commission L-2009-207 Page 3 Should you have any questions concerning this letter, please contact Mitchell Ross, Vice President and General Counsel - Nuclear at 561-691-7126, or Lisa Fuca, Nuclear Business Operations, at 561-691-7604.

Sincerely yours, Mano Nazar Senior Vice Presi nt, Nuclear and Chief Nuclear Of/er cc:

Robert rcross - Public Service Commission of Wisconsin Enclosures

U.S. Nuclear Regulatory Commission L-2009-207 Page 1 of 1 Decommissioning Funding Status Duane Arnold Energy Center NextEra 70% Ownership Interest NRC Minimum: 70% Share Assumptions:

Real Rate of Return License Expiration Years Until Decommissioning Decom Period Years Years Assumed for Present Value Calculation (includes 50% Decom Period)

Trust Balance as of 8/31/09 Calculation of NRC Minimum and Funding Assurance:

Next Era Duane Arnold's 70% Share of DAEC Years Until Decommissioning including 50% Decom Period Years Real Rate of Return Present Value of NRC Minimum for Next Era 70% Share of DAEC Balance as of 8131/09 Amount of Surplus (Deficit) 353,526,162 2%

2/21/2014 4.48 7

7.98 179,995,139 353,526,162 7.98 2%

301,853,975 179,995,139 (121,858,837)

U.S. Nuclear Regulatory Commission L-2009-207 Page 1 of 1 Decommissioning Funding Status Point Beach Nuclear Plant, Unit 1 NextEra 100% Ownership Interest NRC Minimum 342,997,317 Assumptions:

Real Rate of Return License Expiration Years Until Decommissioning Post Shut Down Years Years Assumed for Present Value Calculation (includes 50% Decom Period)

Trust Balance as of 8/31/09 Calculation of NRC Minimum and Funding Assurance:

Point Beach NRC Minimum Real Rate of Return Present Value of NRC Minimum Balance as of 8/31/09 Amount of Surplus (Deficit)

Unit 1 2%

10/5/2030 21.11 7

24.61 215,515,628 342,997,317 2%

210,690,052 215,515,628 4,825,576

U.S. Nuclear Regulatory Commission L-2009-207 Page 1 of 1 Decommissioning Funding Status Point Beach Nuclear Plant, Unit 2 NextEra 100% Ownership Interest NRC Minimum 342,997,317 Assumptions:

Real Rate of Return License Expiration Years Until Decommissioning Post Shut Down Years Years Assumed for Present Value Calculation (includes 50% Decom Period)

Trust Balance as of 8/31/09 Calculation of NRC Minimum and Funding Assurance:

Point Beach NRC Minimum Real Rate of Return Present Value of NRC Minimum Balance as of 8/31/09 Amount of Surplus (Deficit)

Unit 2 2%

3/8/2033 23.53 7

27.03 203,065,522 342,997,317 2%

200,812,877 203,065,522 2,252,645