LIC-13-0038, Biennial Decommissioning Funding Status Report

Biennial Decommissioning Funding Status Report

ML13091A058
Person / Time
Site:	Fort Calhoun
Issue date:	03/29/2013
From:	Cortopassi L Omaha Public Power District
To:	Office of Nuclear Reactor Regulation, Document Control Desk
References
LIC-13-0038
Download: ML13091A058 (8)

Text

h 444 South 16 Street Mall Omaha, NE 68102-2247 March 29, 2013 LlC-13-0038 U. S. Nuclear Regulatory Commission ATTN: Document Control Desk Washington , D.C. 20555

Reference:

Docket No. 50-285

SUBJECT:

Fort Calhoun Station, Unit No.1, 2013 Biennial Decommissioning Funding Status Report In accordance with the requirements of 10 CFR 50.75(f), attached is the, 2013 Biennial Decommissioning Funding Status Report for Fort Calhoun Station, Unit No.1.

No commitments to the NRC are made in this letter.

If you should have any questions about the report, please contact Mr. John W. Thurber at (402) 636 3056.

Louis P. Cortopassi Site Vice President and CNO LPC/mie

Attachment:

2013 Biennial Decommissioning Funding Status Report Employment with Equal Opportunity

OMAHA PUBLIC POWER DISTRICT FORT CALHOUN STATION UNIT NO.1 2013 BIENNIAL DECOMMISSIONING FUNDING STATUS REPORT As of March 29, 2013 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, 2013 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 2013 estimated NRC minimum decommissioning amount to decommission Fort Calhoun Station Unit No. 1 is

$437,026,000. See Attachment A for the detailed decommissioning cost calculation and Attachment B for the applicable indices.

In addition to the minimum NRC decommissioning amount ca'iculation, OPPD employs a consultant to complete a decommissioning cost update every five years. Based on the escalation of the consultant's most recent study (completed in 2008), the total estimated cost to decommission Fort Calhoun Station Unit No.1 is $755,467,000 in 2012 dollars. Of that total cost estimate, the current site-specific cost estimate for radiological, decommissioning of Fort Calhoun Station Unit No. 1 is $502,386,000, the current separate estimate of site restoration (State costs) is $33,240,000 and the current separate estimate of spent fuel management costs is $219,841,000.

The total cost estimate was reported as $717,593,000 in the 2011 Biennial Decommissioning Funding Status report.

B. Current Decommissioning Fund Balance The total OPPD Decommissioning Fund balance as of December 31, 2012 was

$349,724,000. 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 consultant cost study. As of December 31, 2012, the balance in the fund for the NRC minimum decommissioning amount was $267,278,000. As of December 31, 2012, the balance in the funds accumulated for other decommissioning costs was $82,446,000. This balance is allocated as foHows: $17,313,700 for additional radiological costs, $8,244,600 for site restoration costs and $56,887,700 for spent fuel management costs.

Omaha Public Power District 2013 Biennial Decommissioning Funding Status Report to NRC Page Two The two trust funds are not commingled and the funds accumulated for the additional decommissioning cost are not included as funds for the NRC minimum decommissioning amount. 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.

C. Annuall Decommissioning Collections There was no annual collection for 2011 or 2012 and no expected future collections as of 2012 as shown in Attachment C. The revenue source for any collections is "cost-of 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 through the license expiration in August 2033 are shown in Attachment C. Global Insight, Inc. of Waltham, Massachusetts provides the basis for the decommissioning cost estimate inflation and earnings rate forecasts. OPPD's Board of Directors approved both the inflation rates and earnings rates in December 2012 as part of OPPD's Corporate Operating Plan. As previously documented in the May 13, 2011 Response to the NRC RAI Regarding 2011 Biennial Decommissioning Funding Status Report, OPPD's Board of Directors has the authority through Nebraska State Statutes to establish inflation rates and earning rates for OPPD.

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

Dated: Y-cl7-/3 J

fi:~~

. Thurber Division Manager - Finance

OMAHA PUBLIC POWER DISTRICT FORT CALHOUN STATION UNIT NO.1 2013 BIENNIAL DECOMMISSIONING FUNDING STATUS REPORT TO NRC ATTACHMENT A 2013 ,E scalation of the Minimum Decommissioning Amount (MDA) Estimate for Fort Calhoun 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 + .22B)

Where: "L" is the Labor factor. The Labor factor is to be obtained from "Monthly Labor Review", published by the U. S. Department 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 OPPD's case, data from the Midwest Region is to be used.

HE" is the Enemv 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: uP" 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 Statistics. "P" is to be obtained from the Industrial Electric Power Index and "F" is to be obtained from the Light Fuel Oils Index.

Attachment A Page Two "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.

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 + .22B)

Where "L", "E", and "B" =

"L" = Labor Index Change Employment Cost Index - Private Nonfsrm Workers - Compensation Midwest Region (Quarterly Basis Increase) 12-2012 115.9/100 12-2005 x 2.08 (Ae-indexed in December 2005) 2.41 (an increase of 15.9%)

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

(light Fuel Oils Index Change X 42%)

Producer Price Indices Industrial Electric Power 1-2013 198.8 =74.08% increase change 1*1986 114.2 Light Fuel Oils 1*2013 303.4 =270.00% increase change 1-1986 82.0 Application of the formula to 1-2013 leads to Energy = ((198.8/114.2) X .58) + ((303.4/82.0) X .42)

=

Energy 1 .0097 + 1.5540 Energy =2.56 (an increase of 156.4%)

Attachment A Page Three "B" = Waste Burial Index Change NUREG-1307 (Revision 15)

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 1-13 13.885 = 13.885 (an increase of 1288.5%)

(Waste Vendor Index) 1-86 1.00 The escalated cost formula is as follows:

Generic I IW Disposal Site Index

$88.2 million x (.65(2.41) + .13(2.56) + .22(13.885)) = $437.026 million In summary, OPPD's Fort Calhoun Station Unit No.1 NRC Minimum Decommissioning Amount estimate escalated to January 2013 is $437,026,000.

OMAHA PUBLIC POWER DISTRICT FORT CALHOUN STATION UNIT NO.1 2013 BIENNIAL DECOMMISSIONING FUNDING STATUS REPORT TO NRC ATTACHMENT B

u. S. Department of labor Bureau of Labor Statistics Employment Cost Index Series ID: ClU20100000002301 (B)

Not seasonally adjusted Compensation: Total compensation Sector: Private industry Periodicity: Index number Ind ustryocc: Midwest Qtr4 2012 115.9 Producer Price Index - Commodities Series ID: WPU0543

!Not seasonally adjusted Group: IFuels & related products

& power Item: Industria'i electric power

'Base Date: 198200 Jan-13 198.8(P)

Series ID: WPU0573 Not seasonally adjusted Group: Fuels & related products 1& power Item: Light fuel ons Base Date: 198200 Jan-13 303.4(P) u.s. NRC - Report on Waste Burial Charges NUREG-1307, Rev. 15 Published: January 2013 Values for Generic LLW Disposal Site Direct Disposal with Vendors - PWR 2012 13.885

OMAHA PUBLIC POWER DISTRICT FORT CALHOUN STATION UNIT NO.1 2013 BIENNIAL DECOMMISSIONING FUNDING STATUS REPORT TO NRC ATTACHMENT C Minimum Decommissioning Amount Decommissioning Fund Annual Collections, Inflation Rates and Earnings Rates Decommissioning Fund Annual Collection Inflation Earnings Year for NRC MDA Rate Rate 2013 $0 1.84% 2.53%

2014 $0 1.94% 2.66%

2015 $0 1.93% 3.67%

2016 $0 1.94% 5.20%

2017 $0 1.79% 5.51%

2018 $0 1.81% 5.51%

2019 $0 1.72% 5.51%

2020 $0 1.66% 5.51%

2021 $0 2.02% 5.51%

2022 $0 2.07% 5.51%

2023 $0 1.97% 5.51%

2024 $0 2.01% 5.51%

2025 $0 2.03% 5.51%

2026 $0 2.05% 5.51%

2027 $0 2.05% 5.51%

2028 $0 2.05% 5.51%

2029 $0 2.02% 5.51%

2030 $0 2.03% 5.51%

2031 $0 2.11% 5.51%

2032 $0 2.11% 5.51%

2033 $0 2.11% 5.51%