L-PI-09-117, Prairie Lsland, Unit 2, Lrradiated Fuel Management Plan and Preliminary Decommissioning Cost Estimates

Prairie Lsland, Unit 2, Lrradiated Fuel Management Plan and Preliminary Decommissioning Cost Estimates

ML093020064
Person / Time
Site:	Prairie Island
Issue date:	10/28/2009
From:	Schimmel M Northern States Power Co, Xcel Energy
To:	Document Control Desk, Office of Nuclear Reactor Regulation
References
L-PI-09-117, TAC MD9492, TAC MD9493, TAC MD9494, TAC MD9495
Download: ML093020064 (7)

Text

L-PI-09-117 OCT 9 8 2W 10 CFR 50.54 10 CFR 50.75 U S Nuclear Regulatory Commission ATTN: Document Control Desk Washington, DC 20555-0001 Prairie lsland Nuclear Generating Plant, Unit 2 Docket 50-306 License No. DPR-60 lrradiated Fuel Management Plan and Preliminary Decommissioning Cost Estimates for Prairie Island Nuclear Generating Plant (PINGP)

References:

1. Nuclear Management Company, LLC (NMC) letter to US Nuclear Regulatory Commission (NRC), "Irradiated Fuel Management Plan and Preliminary Decommissioning Cost Estimates for Prairie lsland Nuclear Generating Plant (PINGP)", dated August 8, 2008, Accession Number ML082260425.

2. Northern States Power Company - Minnesota (NSPM) letter to the NRC, "Supplement to lrradiated Fuel Management Plan and Preliminary Decommissioning Cost Estimates for Prairie lsland Nuclear Generating Plant (PINGP) (TAC Nos. MD9492, MD9493, MD9494, and MD9495)", dated January 19, 2009, Accession Number ML090210156.

3. NRC letter to NSPM, "Prairie lsland Nuclear Generating Plant, Units 1 and 2 -Safety Evaluation RE: Spent Fuel Management Program and Preliminary Decommissioning Cost Estimate (TAC Nos. MD9492, MD9493, MD9494, and MD9495)", dated June I, 2009, Accession Number ML091200541.

4. NSPM letter to the NRC, "Supplement to lrradiated Fuel Management Plan and Preliminary Decommissioning Cost Estimates for Prairie lsland Nuclear Generating Plant (PINGP) (TAC Nos. MD9492, MD9493, MD9494, and MD9495)", dated March 12,2009, Accession Number ML090760499.

1717 Wakonade Drive East Welch, Minnesota 55089-9642 Telephone: 651.388.1 121

Document Control Desk Page 2 References (continued)

5. Northern States Power Company - Minnesota (NSPM) letter to the NRC, "Decommissioning Funding Status Reports", dated March 31, 2009, Accession Number ML090910082.

Pursuant to 10 CFR 50.54(bb), a licensee shall "submit written notification to the Commission for its review and preliminary approval of the program by which the licensee intends to manage and provide funding for the management of all irradiated fuel at the reactor following permanent cessation of operation of the reactor until title to the irradiated fuel and possession of the fuel is transferred to the Secretary of Energy for its ultimate disposal in a repository." Additionally, 10 CFR 50.75(f)(3), "Reporting and Recordkeeping for Decommissioning Planning" states, "each power reactor licensee shall at or about 5 years prior to the projected end of operations submit a preliminary decommissioning cost estimate which includes an up-to-date assessment of the major factors that could affect the cost to decommission." In Reference 1, as supplemented by References 2 and 4, NMC* submitted the Irradiated Fuel Management Plan and the PlNGP Preliminary Decommissioning Cost Estimate for PlNGP Units 1 and 2.

The NRC safety evaluation (Reference 3) stated, "Although the licensee provided cost information for both Unit 1 and Unit 2, the expiration of the operating license for PlNGP Unit 2 is not until October 29, 2014. Therefore, due to possible significant changes in cost and the decommissioning trust fund (DTF) balance by the time Unit 2 reaches 5 years before expiration of its license, the NRC staffs assessment is based on and covers only Unit 1." NSPM fulfillment of the requirements of 10 CFR 50.54(bb) and 10 CFR 50.75(f)(3) for PlNGP Unit 2 is provided by Attachment 1 to Reference 1, entitled, "Decommissioning Cost Analysis for Prairie Island Nuclear Generating Plant, August 2008, by TLG Services, Inc", as supplemented by Reference 2, Reference 4, and this letter and enclosure. This cost analysis is the most recently completed and remains a valid estimate of future decommissioning costs for Unit 2.

Enclosure 1 reviews the Trust Fund Balance which includes a biennial comparison and an update of the Trust Fund Balance in Reference 5, current as of July 31, 2009 for both Unit 1 and Unit 2. In addition Enclosure 1 reviews changes to the Annual Contribution. Finally, Enclosure 1 provides a review of changes to the real rate of return and includes a sufficiency of funds analysis for Unit 2 to update Reference 2, current as of July 31, 2009.

If there are any questions or if additional information is needed, please contact Mr. Dale Vincent, P.E., at 651-388-1121.

• On September 22, 2008, NMC transferred its operating authority to Northern States Power Company, a Minnesota Corporation (NSPM), doing business as Xcel Energy. By letter dated September 3, 2008, NSPM assumed responsibility for actions and commitments previously submitted by NMC.

Document Control Desk Page 3 Summaw of Commitments This letter contains no new commitments and no revisions to existing commitments.

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Mark A. Schimmel Site Vice President Prairie Island Nuclear Generating Plant, Units 1 and 2 Northern States Power Company - Minnesota Enclosures (1) cc: Administrator, Region Ill, USNRC Project Manager, PINGP, USNRC Resident Inspector, PINGP, USNRC

Enclosure 1

1. Nuclear Regulatory Commission (NRC) Minimum and Funding Status The NRC minimum decommissioning financial assurance requirement for the Prairie Island Nuclear Generating Plant (PINGP) as reported in Reference 1 of this Enclosure and set forth in 10 CFR 50.75 (c) is approximately $345.7 million for Unit 1 and $345.7 million for Unit 2. As of July 31, 2009, the PINGP decommissioning trust funds balances were $333.7 million for Unit 1 and $357.8 for Unit 2. The trust fund monies will be used for radiological decommissioning and irradiated fuel management.

However, inclusion of irradiated fuel costs in this submittal is not intended to acknowledge that these costs will ultimately be borne by Northern States Power Company, a Minnesota corporation (NSPM, doing business as Xcel Energy, since some (or all) are expected to be the responsibility of the U.S. Department of Energy as a result of the breach of the Standard Contract of Disposal of Spent Nuclear Fuel andlor High-Level Radioactive Waste.

The following table, Table 1, includes comparisons of the radiological decommissioning, spent fuel management, and site restoration segmentation of the trust fund balances for PINGP Unit 1 and Unit 2 calculated for the beginning of 2008 and 2009. The current funding status ending in July of 2009 shows a significant improvement of the funds that exceeds the NRC minimum for Unit 2.

Table 1: Trust Fund Balances PlNGP Unit 1 2008 2009 July 2009 Radiological Decommissioning 370,245,731 305,379,191 333,676,530 Spent Fuel Management 24,146,461 19,916,034 21,761,513 Site Restoration 8,048,820 6,638,678 7,253,837 Total 402,441,012 331,933,903 362,691,880 PlNGP Unit 2 2008 2009 July 2009 Radiological Decommissioning 387,142,205 327,830,502 357,804,725 Spent Fuel Management 30,111,059 25,497,927 27,829,257 Site Restoration 12,904,741 10,927,684 11,926,824 Total 430,158,005 364,256,113 397,560,806 Page 1 of 4 NSPM

2. Annual Contributions In 2009, based on a ruling by the Minnesota Public Utilities Commission, these funds are not being supplemented with any annual Company contributions for radiological decommissioning. Adjustments to the annual contribution require approval of multiple state public utilities commissions and will be pursued to recover any projected shortfall.

The following annual contributions table, Table 2, shows the approximate accrual segmentation for radiological decommissioning, spent fuel management, and site restoration for PlNGP Unit 1 and Unit 2.

Table 2: Annual Contributions PlNGP Unit 1 Radiological Decommissioning Spent Fuel Management Site Restoration Total PlNGP Unit 2 Radiological Decommissioning Spent Fuel Management Site Restoration Total

3. Sufficiency of Funds Analysis Although the Minnesota Public Utilities Commission discontinued the annual supplement, the Commission approved a decommissioning plan that included a 2.89 percent cost escalation rate and a 6.30 percent earnings rate on external funds. The table below, Table 3, demonstrates that the approved 3.41 percent rate of return applied to the current balance reconcile when contributions and earnings are added and the annual costs are subtracted. The projected balance at the end of decommissioning is more than adequate to cover the costs of radiological decommissioning. The 3.41 percent rate of return begins with the 2010 projection.

Table 3: Funds Analysis PlNGP Unit 2 Beginning Balance Before Assumed Balance Payment Annuity Interest Interest Ending Balance 2009 357,804,725 357,804,725 5,083,809 362,888,534 201 0 362,888,534 362,888,534 12,374,499 375,263,033 201 1 375,263,033 375,263,033 12,796,469 388,059,502 2012 388,059,502 10,415,560 398,475,062 13,588,000 412,063,062 Page 2 of 4 NSPM PlNGP Unit 2 Beginning Balance Before Assumed Balance Payment Annuity Interest lnterest Ending Balance 2013 412,063,062 10,415,560 422,478,622 14,406,521 436,885,143 2014 436,885,143 8,332,448 435,832,591 14,861,891 450,694,482 2015 450,694,482 392,676,482 13,390,268 406,066,750 2016 406,066,750 306,023,750 10,435,410 316,459,160 2017 316,459,160 223,603,160 7,624,868 231,228,028 2018 231,228,028 162,145,028 5,529,145 167,674,173 2019 167,674,173 124,136,173 4,233,044 128,369,217 2020 128,369,217 118,648,217 4,045,904 122,694,121 2021 122,694,121 113,000,121 3,853,304 116,853,425 2022 116,853,425 107,159,425 3,654,136 110,813,562 101,119,562 3,448,177 104,567,739 94,846,739 3,234,274 98,081,013 88,387,013 3,013,997 91,401,010 81,707,010 2,786,209 84,493,219 74,799,219 2,550,653 77,349,872 67,628,872 2,306,145 69,935,017 53,653,017 1,829,568 55,482,585 14,100,585 480,830 14,581,414 5,082,414 173,310 5,255,725 5,219,725 177,993 5,397,717 5,376,717 183,346 5,560,063 5,560,063 189,598 5,749,662 5,749,662 196,063 5,945,725 5,945,725 202,749 6,148,474 6,148,474 209,663 6,358,137 6,358,137 216,812 6,574,950 6,574,950 224,206 6,799,156 6,799,156 231,851 7,031,007 7,031,007 239,757 7,270,764 7,270,764 247,933 7,518,697 7,518,697 256,388 7,775,085 7,775,085 265,130 8,040,215 8,040,215 274,171 8,314,386 8,314,386 283,521 8,597,907 8,597,907 293,189 8,891,096 8,891,096 303,186 9,194,282 9,194,282 313,525 9,507,807 Page 3 of 4 NSPM PlNGP Unit 2 Beginning Balance Before Assumed Balance Payment Annuity Interest Interest Ending Balance 2050 9,507,807 9,507,807 324,216 9,832,023 2051 9,832,023 9,832,023 335,272 10,167,295 2052 10,167,295 10,167,295 346,705 10,514,000 2053 10,514,000 10,514,000 Total 537,984,000

4. References

1. Northern States Power Company - Minnesota (NSPM) letter to the NRC, "Decommissioning Funding Status Reports", dated March 31, 2009, Accession Number ML090910082.

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