LIC-09-0018, Submittal of 2009 Biennial Decommissioning Fund Status Report

Submittal of 2009 Biennial Decommissioning Fund Status Report

ML091660558
Person / Time
Site:	Fort Calhoun
Issue date:	03/20/2009
From:	Matthews T Omaha Public Power District
To:	Document Control Desk, Region 4 Administrator
References
LIC-09-0018
Download: ML091660558 (7)

Text

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March 20, 2009 LlC-09-0018 U, S. Nuclear Regulatory Commission ATTN: Document Control Desk Washington. D.C. 20555

References:

1. Docket No. 50-285

2. NRC Regulatory Issue Summary 2001-07, Rev. 1, ~10 CFR 50.75 Reporting and Record Keeping for Decommissioning Planning," January 8,2009

SUBJECT:

Fort Calhoun Station, Unit No.1, 2009 Biennial Decommissioning Funding Status Report 1n accordance with the requirements of 10 CFR 50.75(f). attached is the, 2009 Biennial Decommissioning Funding Status Report for Fort Calhoun Station, Unit NO.1.

As requested by Reference 2, the Omaha Public Power District (OPPD) is clarifying the costs and accumulated funds requ ired by the NRC from other costs and accumulated funds associated with cleaning up the site.

No commitments to the NRC are made in this letter. If you should you have any questions regarding this matter, please contact Mr. John W. Thurber at (402) 636-3056.

Sincerely, T, C. Matthews Manager - Nuclear Licensing TCM/mle Attachment c: E. E. Collins, NRC Regional Administrator, Region IV A, B. Wang, NRC Project Manager J, D. Hanna, NRC Senior Resident Inspector 4171

OMAHA PUBLIC POWER DISTRICT FORT CALHOUN STATlON UNIT NO.1 2009 BIENNIAL DECOMMISSIONING FUNDING STATUS REPORT Based on Nuclear Regulatory Commission (NRC)

Regulation 10 CFR 50.75 (f)

The NRC requires that Omaha Public Power District (OPPD) report by March 31, 2009 and at least once every two years thereafter on the status of its decommissioning funding for Fort Calhoun Station Unit NO.1. Based on the decommissioning funding requirement as outlined in 10 CFR 50.75 (f), OPPD reports the following information:

A. Current Decommissioning Cost Estimate Pursuant to 10 CFR 50.75 (c), the January 2009 estimated NRC minimum decommissioning amount to decommission Fort Calhoun Station Unit No. 1 is

$338,940,000. See Attachment A for detailed decommissioning cost calculation.

In addition to the minimum NRC decommissioning amount calculation, OPPD employs a consultant to complete a decommissioning cost update every five years. Based on the escalation of the consultant's most recent study, the total estimated cost to decommission Fort Calhoun Station Unit No, 1 is $809,200,000. Of that total cost estimate, the current site-specific cost estimate for radiological decommissioning of Fort Calhoun Station Unit NO.1 is $538,118,000, the cUlTent separate estimate of site restoration (State costs) is

$35,605,000 and the current separate estimate of spent fuel management costs is

$235,477,000.

B. Current Decommissioning Fund Balance The 10tal OPPD Decommissioning Fund balance as of December 31, 2008 was

$278,178,600. OPPD maintains two separate trust accounts, one for the NRC minimum decommissioning amount as outlined in 10 CFR 50.75 (c) and one for other costs including additional radiological, site restoration and spent fuel management as determined by the cost study. As of December 31, 2008. the balance in the fund for the NRC minimum decommissioning amount was $213,224,300. As of December 31,2008, the balance in the funds accumulated for other decommissioning costs was $64,954,300. This balance is allocated as follows: $22,734,000 for additional radiological costs, $5,196,300 for site restoration costs and $37,024,000 for spent fuel management costs, The two trust funds are not commingled. The funds accumulated for the additional decommissioning costs including additional radiological. site restoration and spent fuel management are available for radiological decommissioning without prior approval by a State regulatory authority and are not SUbject to disapproval for radiological decommissioning by a State regulatory authority.

Omaha Public Power District 2009 Biennial Decommissioning Funding Status Report to NRC Page Two C. Annual Decommissioning Collections There was no annual collection for 2007 or 2008 as shown in Attachment B. The revenue source for any collections is "cost-at-service" electric rates.

D. Rates Used to Escalate Decommissioning Costs and Fund Balances The rates used for the escalation of the decommissioning cost estimate and earnings rates on the Decommissioning Fund are shown in Attachment B. Global Insight, Inc. ot Waltham, Massachusetts provides the decommissioning cost estimate inflation and earnings rates forecasts. OPPD's Board of Directors approved both the inflation rates and earnings rates in December 2008 as part of OPPD's Corporate Operating Plan.

E. Contracts to Help Fund Decommissioning OPPD does not have any contracts pursuant to 10 CFR 50.75 {e)(1 )(ii)(C) and is not relying on contracts with a "non-bypassable charge" to fund decommissioning.

F. Modifications to Method of Providing Financial Assurance There have been no modifications to OPPD's method of providing financial assurance since the decommissioning funding plan began in 1982 and continued pursuant to NRC Regulations in 1990.

G. Changes in the Decommissioning Funding Plan Trust Agreement There have been no changes to OPPD's Decommissioning Funding Plan Trust Agreement since the Plan began pursuant to NRC Regulations in 1990.

~~/< . Thurber Division Manager - Finance

OMAHA PUBLIC POWER DISTRICT FORT CALHOUN STATION UNIT NO.1 2009 BIENNIAL DECOMMISSIONING FUNDING STATUS REPORT TO NRC ATTACHMENT A 2009 Escalation of the Minimum Decommissioning Amount (MOA) Estimate for Fort Cathoun Station Unit No.1 Based on Nuclear Regulatory Commission (NRC) Formulas and Application to OPPD The NRC accepted OPPD's Decommissioning Funding Plan in 1990. As part of the Decommissioning Funding Plan, OPPD annually calculates the MDA as follows:

NRC Formula for MDA

$75 million + $8800(P) ::: MDA for a Pressurized Water Reactor (PWR) Plant where: P ::: MWt reactor rating Fort Calhoun = 1500 MDA expressed in 1986 Dollars (to be escalated)

Escalation of NRC Formula for MDA Estimated Decommissioning Cost in Year XX::: MDA X (.65L + .13E + .228)

Where: "L" is the Labor factor. The Labor factor is to be obtained from "Monthly labor Review",

published by the U. S Departmenl of Labor - Bureau of Labor Statistics. Specifically, the appropriate regional data from the table entitled "Employment Cost Index - Private Nonfarm Workers". subtitled "Compensation" is to be used. In OPPO's case, data from the Midwest Region is to be used.

"E" ;s the Energy factor. The Energy factor is to be obtained from the following two component formula specifically weighted for PWR plants:

.58P + .42F =E (Energy Factor) where: "p" is the component for electric power, and "F" is the component for fuel oil Both .p" and "F" can be found in "Producer Price Indices", published by the U. S. Department of Labor - Bureau of Labor Stalistics. .p" is 10 be obtained from the Industrial Eleclric Power Index and "F" is to be obtained from Ihe Light Fuel Oils Index.

"B" is the Waste Burial factor. The Waste Burial factor is to be obtained from NRC report NUREG-1307, "Report on Waste Burial Charges" or its updates.

Attachment A Page Two OPPD's MDA and Escalation MDA ::; $75 million + $8800{P) (where P ::; 1500 MWt)

$75 million + $8800(1500)

$75 million + $13.2 million =$88.2 million (1986 Dollars)

OPPD Escalation of MDA =$88.2 million X (.65L + .13E + .228)

Where "L", "E", and "S" =

fOl'* = labor Index Change Employment Cost Index ~ Private Nonfarm Workers* Compensation Midwest Region (Quarterly Basis Increase) 12*2008 107.6::; 2.2132 (an increase of 121.399%)

1-1986 48.6 (NRC Interpolated from 12/85 - Rebased 12-05)

"E" = Energy Index Change Energy Index Change = (Electric Power Index Change X 58%) +

(Light Fuel Oils Index Change X 42%)

Producer Price Indices Industrial Electric Power 1-2009 188.9 =65.41% increase change 1-1986 114.2 Light Fuel Oils 1-2009 161.0 =96.34% increase change 1-1986 82.0 Application of the formula to 1-2009 leads to Energy = <<188.9/114.2)X .58) + <<161.0/82.0) X .42)

Energy = 0.9594 + 0.8246 Energy;; 1.784 (an increase of 78.40%)

Attachment A Page Three "B" ;: Waste Burial Index Change NUREG*1307 (Revision 13)

The Waste Burial escalation factor is found in Nuclear Regulation NUREG-1307 and its updates. OPPD's Biennial Decommissioning Funding Status Report will use the Generic LLW Disposal Site Index in calculating the NRC Minimum Decommissioning Amount.

Generic LLW Disposal Site Index 1-08 9.872 = 9.872 (an increase of 887.2%)

(Waste Vendor Index) 1-86 1.000 The escalated cost formula is as follows:

Generic LLW Disposal Site Index

$88.2 million x (.65(2.21399)+.13(1.7840)+.22(9.872)) = $338.94 milJion In summary, OPPD's Fort Calhoun Station Unit NO.1 NRC Minimum Decommissioning Amount estimate escalated to January 2009 is $338,940,000,

OMAHA PUBLIC POWER DISTRICT FORT CALHOUN STATION UNIT NO.1 2009 BIENNIAL DECOMMISSIONING FUNDING STATUS REPORT TO NRC ATTACHMENT B Omaha Public Power District Minimum Decommissioning Amount Decommissioning Fund Annual Collections. Inflation Rates and Earnings Rates Decommissioning Fund Annual Collection Inflation Eamings YEAR for NRC MDA Rate Rate 2008 $0 2.20% 2.40%

2009 $0 1.90% 3.11%

2010 $0 1.90% 4.90%

2011 $0 1.90% 4.93%

2012 $0 1.90% 4.93%

2013 $0 1.90% 4.93%

2014 $0 2.00% 5.03%

2015 $0 1.90% 4.93%

2016 $0 1.90% 4.93%

2017 $0 1.90% 4.93%

2018 $0 1.90% 4.93%

2019 $0 1.90% 4.93%

2020 $0 1.90% 4.93%

2021 $0 1.80% 4.83%

2022 $0 1.80% 4.83%

2023 $0 1.80% 4.83%

2024 $0 1.80% 4.83%

2025 $0 1.80% 4.83%

2026 $0 1.90% 4.93%

2027 $0 190% 4.93%

2028 $0 1.90% 4.93%

2029 $0 1.90% 4.93%

2030 $0 1.90% 4.93%

2031 $0 1.90% 4.93%

2032 $0 1.90% 4.93%

2033 $0 1.90% 4.93%