L-HU-06-013, Decommissioning Funding Status Report

Decommissioning Funding Status Report

ML060810686
Person / Time
Site:	Palisades
Issue date:	03/22/2006
From:	Weinkam E Nuclear Management Co
To:	Document Control Desk, Office of Nuclear Reactor Regulation
References
L-HU-06-013
Download: ML060810686 (2)

Text

Committed to Nuclear Excellence Nuclear Management Company, LLC March 22,2006 L-HU-06-013 10 CFR 50.75(f)(I )

U.S. Nuclear Regulatory Commission A T N : Document Control Desk Washington, D.C. 20555-0001 Palisades Nuclear Plant Docket 50-255 License No. DPR-20 Decommissioning Funding Status Report The enclosed decommissioning funding status report is being submitted in accordance with 10 CFR 50.75, "Reporting and Recordkeeping for Decommissioning Planning," Paragraph (f)(I),

for Palisades Nuclear Plant. As holder of the plant operating license, Nuclear Management Company, LLC is submitting this report on behalf of the plant owner, Consumers Energy. The financial information presented herein, current as of December 31,2005, reflects information provided to Nuclear Management Company, LLC by Consumers Energy.

This letter contains no new commitments and no revisions to existing commitments.

Director, htdlear Licensing and Regulatory Services Nuclear Management Company, LLC Enclosure ( I )

CC: Regional Administrator, USNRC, Region Ill NRR Project Manager, Palisades Nuclear Plant, USNRC NRC Resident Inspector, Palisades Nuclear Plant, USNRC Consumers Energy:

Manager of Depreciation and Decommissioning, Jan Anderson Asset Manager, Steve Wawro 700 First Street Hudson, Wisconsin 54016 Telephone: 715.377.3300 www.nmcco.com

ENCLOSURE 1 Consumers Energy Company Palisades Nuclear Plant Docket No. 50-255 License No. DPRPO Decommissioning Funding Status Report As provided in 10 CFR 50.75(f)(I), each power reactor licensee is required to report to the NRC on a calendar year basis beginning March 31, 1999, and at least every two years thereafter on the status of its decommissioning funding for each reactor or share of reactor it owns.

1. The minimum decommissioning funding estimate, pursuant to 10 CFR 50.75(b) and (c). Updated to include NUREG 1307, Revision 11 waste burial changes.

2. The amount accumulated at the end of the calendar Total External year preceding the date of the report. Funds $544,109,593

3. A schedule of the annual amounts remaining to be collected and deposited in external sinking fund as Collect approved by Michigan Public Service Commission (MPSC) in 1999. $5,500,000

4. Assumptions used regarding escalation in decommissioning costs, rate of earnings - on decommissioning funds and rates of other factors used in funding projections.

Plant Owner (% Ownership) Rate of Escalation Real Rate of Earnings Factor Return (Nominal Rate (Inflation) (Projected)

Of Return)

Consumers Energy Company (100%) 6.4% 4.54% 1.86%

Basis for Allowance:

The Michigan Public Service Commission approved the escalation factor in its December 16, 1999, Order in Case No. U-11662.

5. Any contracts upon which the licensee is relying pursuant to 10 CFR 50.75(e)(l)(v). None Consumers Energy has not relied on contract obligations to meet its NRC funding assurance.

6. Any modifications to a licensee's method of providing financial assurance occurring since the last submitted report. None Consumers Energy has not modified its method of providing financial assurance.

7. Any material changes to trust agreements. None The Michigan Public Service Commission continues to regulate decommissioning funding for Palisades.