LIC-17-0021, Transmittal of 2017 Biennial Decommissioning Funding Status Report

Transmittal of 2017 Biennial Decommissioning Funding Status Report

ML17083B297
Person / Time
Site:	Fort Calhoun
Issue date:	03/24/2017
From:	Fisher M Omaha Public Power District
To:	Document Control Desk, Office of Nuclear Reactor Regulation
References
LIC-17-0021
Download: ML17083B297 (10)

Text

10 CFR 50.75 March 24, 2017 LIC-17-0021 U. S. Nuclear Regulatory Commission ATTN: Document Control Desk Washington, D.C. 20555 Fort Calhoun Station, Unit No. 1 Renewed Facility Operating License No. DPR-40 NRC Docket No. 50-285

Subject:

Fort Calhoun Station, Unit No. 1, 2017 Biennial Decommissioning Funding Status Report In accordance with 10 CFR 50. 75(f), Enclosure 1 provides the, 2017 Biennial Decommissioning Funding Status Report No commitments to the NRC are made in this letter.

If you should have any questions about the enclosed reports, please contact Mr. Bradley H. Blome, Director Licensing & Regulatory Assurance, at 402-533-7270.

Respectfully, Mary J. Fisher Senior Director Fort Calhoun Station Decommissioning MJF/epm

Enclosure:

2017 Biennial Decommissioning Funding Status Report c: K. M. Kennedy, NRC Regional Administrator, Region IV J. S. Kim, NRC Project Manager S.M. Schneider, NRC Senior Resident Inspector 444 South 161h Street Mall Omaha, NE 68102-2247 Wl'l0l'MfiVTWJ1HfO!MI. OI'PORTI,INITY * -* __,y.,.._-*..

LIC-17-0021 Enclosure OMAHA PUBLIC POWER DISTRICT FORT CALHOUN STATION UNIT N0.1 2017 BIENNIAL DECOMMISSIONING FUNDING STATUS REPORT As of March 24, 2017

OMAHA PUBLIC POWER DISTRICT (OPPD)

FORT CALHOUN STATION UNIT NO. 1 2017 BIENNIAL DECOMMISSIONING FUNDING STATUS REPORT As of March 24, 2017 Based on Nuclear Regulatory Commission (NRC)

Regulation 10 CFR 50.75 (f)

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 2017 estimated NRC minimum decommissioning amount to decommission Fort Calhoun Station Unit No. 1 is $412,143,000. See Attachment A for the detailed decommissioning cost calculation and Attachment B for the applicable indices.

In addition to the minimum NRC decommissioning amount calculation, OPPD employed a consultant to complete a site-specific decommissioning cost analysis. Based on the consultant's site-specific decommissioning cost analysis (completed in 2017), the total estimated cost to decommission Fort Calhoun Station Unit No. 1 is $1,383,373,000 in 2016 dollars. Of that total cost estimate, the current site-specific cost estimate for license termination expenses (LTE) of Fort Calhoun Station Unit No. 1 is $931 ,973,000, the current separate estimate of site restoration is $45,857,000 and the current separate estimate of spent fuel management costs is $405,543,000.

The total cost estimate was reported as $878,295,000 in the 2015 Biennial Decommissioning Funding Status report.

B. Current Decommissioning Fund Balance The total OPPD Decommissioning Fund balance as of December 31, 2016 was

$382,134,000. 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 , 2016, the balance in the fund for the NRC minimum decommissioning amount was $285,838,000. As of December 31, 2016, the balance in the funds accumulated for other decommissioning costs was $96,296,000.

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.

Omaha Public Power District 2017 Biennial Decommissioning Funding Status Report to NRC Page Two C. Annual Decommissioning Collections There was no annual collection for 2016, and the annual collection for 2015 was

$5,161 ,000. The total expected future collections for decommissioning are $1 ,090,698,655 beginning in 2017 as shown in Attachment C. The revenue source for collections is OPPD "cost-of-service" electric rates and Department of Energy (DOE) reimbursement of spent fuel costs.

D. Rates Used to Escalate Decommissioning Costs and Fund Balances The rates used for the escalation of the site-specific decommissioning cost estimate and earnings rates on the Decommissioning Fund through the completion of decommissioning are shown in Attachment D. IHS Global Insight, Inc. provides the basis for the decommissioning cost estimate inflation and earnings rate forecasts. Decommissioning costs are inflated using a blending of the IHS Global Insight's forecasts for Consumer Price Index, All-Urban and Employment Cost Index, Total Private Compensation.

Decommissioning trust earnings are projected using the IHS Global Insight's forecast for the yield on 5-year Treasury notes and are within the two percent (2%) annual real rate of return per 10 CFR 50.75(e)(1 )(i).

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.

OMAHA PUBLIC POWER DISTRICT FORT CALHOUN STATION UNIT NO. 1 2017 BIENNIAL DECOMMISSIONING FUNDING STATUS REPORT TO NRC ATTACHMENT A 2017 Escalation 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.

"E" is the Energv 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 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 ofMDA = $88.2 million X (.65L + .13E + .22B)

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

"L" =Labor Index Change Employment Cost Index - Private Nonfarm Workers - Compensation Midwest Region (Quarterly Basis Increase) 12-2016 125.7/100 12-2005 x 2.08 (Re-indexed in December 2005) 2.61 (an increase of 25 .5%)

"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 12-2016 213.9 = 87.3% increase 1-1986 114.2 Light Fuel Oils 12-2016 137.4 = 67.6% increase 1-1986 82.0 Application of the formula to 12-2016 leads to Energy= ((213.9/114.2) X .58)+ ((137.4/82.0) X .42)

Energy= 1.086 + 0.704 Energy= 1.79 (an increase of 79.0%)

Attachment A Page Three "B" = Waste Burial Index Change NUREG-1307 (Revision 16)

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 3-17 12.471 =12.471 (an increase of 1147.1%)

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

Generic LLW Disposal Site Index

$88.2 million x (.65(2.61) + .13(1.79) + .22(12.471)) =$412.143 million In summary, OPPD's Fort Calhoun Station Unit No. 1 NRC Minimum Decommissioning Amount estimate escalated to 2017 is $412,143,000.

OMAHA PUBLIC POWER DISTRICT FORT CALHOUN STATION UNIT NO. 1 2017 BIENNIAL DECOMMISSIONING FUNDING STATUS REPORT TO NRC ATTACHMENT B U. S. Department of labor Bureau of Labor Statistics Employment Cost Index Series ID: CIU20100000002301 (B)

Not seasonally adjusted Total compensation for Series

Title:

private industry workers in Midwest, Index Ownership: Private industry workers Component: Total compensation Occupation: All workers Industry: All workers Subcategory: All workers Area: Midwest Region Periodicity: Index number Qtr4 2016 125.7 Producer Price Index - Commodities Series ID: WPU0543 Not seasonally adjusted Fuels & related products &

Group:

power Item: Industrial electric power Base Date: 198200 2016AnnAvg 213.9(P)

Series ID: WPU0573 Not seasonally adjusted Fuels & related products &

Group:

power Item: Light fuel oils Base Date: 198200 2016Ann Avg 137.4(P)

U.S. NRC - Report on Waste Burial Charges NUREG-1307, Rev. 16 Published: March 2017 Values for Generic LLW Disposal Site Direct Disposal with Vendors - PWR 2016 12.471

OMAHA PUBLIC POWER DISTRICT FORT CALHOUN STATION UNIT NO. 1 2017 BIENNIAL DECOMMISSIONING FUNDING STATUS REPORT TO NRC ATTACHMENT C Decommissioning Fund Annual Collections, Expenditures and Balances

$ in thousands Total Annual Ucense Spent Fuel Site Decommissioning Supplemental Decommissioning Termination Management Restoration Trust Fund Decommissioning 2

Year Fund Collections' ExE!enditures Expenditures Expenditures Balance Trust Fund Balance' 2016 $0 $23 $272 $279 $285,838 $96,296 2017 $147,469 $135,676 $26,312 $0 $289,391 $84,334 2018 $135,054 $66,060 $33,812 $0 S295,108 $122,526 2019 S156,262 $24,535 $42,180 $0 S303,537 $217,424 2020 $134,762 S25,311 $43,515 $0 S313,049 $291,962 2021 $188,436 $25,971 $44,649 $0 S662,261 $82,276 2022 $108,703 $26,719 $45,935 $0 $656,761 $148,760 2023 $132,370 $8,462 $6,082 $0 $669,637 $281,978 2024 $9,187 $13,980 S6,273 $0 $677,326 $294,160 2025 $1,216 $6,647 $6,435 $0 $692,719 S298,475 2026 $1,255 $6,835 $6,617 $0 $708,424 $302,786 2027 $1,287 $7,028 $6,804 $0 $724,446 $307,079 2028 $1,323 $7,243 $7,013 $0 S740,774 $311,339 2029 $1,361 $7,424 $7,187 $0 $757,452 $315,598 2030 $1,403 $7,629 $7,386 $0 $774,467 $319,837 2031 $1,437 $7,841 $7,591 $0 $791,822 $324,041 2032 $1,477 $8,081 $8,719 $0 $809,502 $327,276 2033 $1,518 $8,281 $9,399 $0 $827,556 $329,969 2034 $1,744 $8,509 $8,711 $0 $845,969 $333,678 2035 $1,880 $8,742 $9,435 $0 $864,748 $336,910 2036 S1,742 S9,005 $10,215 $0 $883,873 $339,315 2037 $1,887 $9,225 $9,444 $0 $903,400 $342,730 2038 $2,043 $9,476 $9,701 $0 $923,310 $346,154 2039 $1,889 S9,734 $9,965 so $943,610 $349,265 2040 $1,940 $10,024 $10,260 $0 $964,277 $352,230 2041 $1,993 $10,267 $10,512 $0 $985,374 $355,090 2042 $2,052 $10,544 $10,795 $0 $1,006,879 $357,815 2043 $2,102 $10,829 $11,688 $0 $1,028,798 $359,773 2044 $2,159 $11,153 $12,035 $0 $1,051,104 S361,501 2045 $2,338 $11.424 $11,696 $0 $1,073,864 $363,811 2046 $2,407 $11,734 $13,318 $0 $1,097,054 $364,618 2047 $2,339 $12,052 $12,338 so S1,120,679 $366,379 2048 $2,664 $12,412 $12,017 $0 $1,144,711 $368,853 2049 $2,468 $12,714 $13,016 $0 $1,169,221 $370,194 2050 $2,403 $13,058 $13,369 $0 $1,194,183 $371,154 2051 $2,603 $13,412 $14,476 $0 $1,219,601 $371,224 2052 $2,674 $13,813 $14,138 $0 $1,245,443 $371,712 2053 $2,895 $14,149 $14,485 $0 $1,271,789 $372,087 2054 $2,828 $14,532 $15,685 $0 $1,298,607 $371,187 2055 $2,897 $14,926 $15,281 $0 $1,325,901 $370,738 2056 $3,137 $15,372 $15,734 $0 $1,353,634 $370,058 2057 $3,056 $15,746 $16,995 $0 $1,381,894 $367,993 2058 $3,147 $16,173 $17,458 $0 $1,410,645 $365,481 2059 $3,399 $160,859 $0 $1,115 $1,293,284 $379,754 2060 $3,492 $303,834 $0 $4,293 $1,026,772 $391,358 2061 $0 $350,342 $0 $5,283 $704,278 $398,785 2062 $0 $233,487 $0 $8,545 $490,003 $403,141 2063 $0 $239,815 $0 $8,777 $262,290 $407,403 2064 $0 $210,069 $0 $6,349 $57,364 $414,273 2065 $0 $57,589 $0 $48,938 $709 $378,082 2066 $0 $507 $0 $88,148 $217 $300,857

$1,090,698 $2,249,273 $628,948 $171,727 1

Collections are a combination of District Funds and DOE reimbursements for spent fuel costs.

2 in 2021, a lump sum of $339,400,000 will be transferred from the Decommissioning SupplementaiTrust to fund the Decommissioning Trust.

3 All collections and expenditures flow through the Decommissioning Supplemental Trust through 2021.

OMAHA PUBLIC POWER DISTRICT FORT CALHOUN STATION UNIT NO. 1 2017 BIENNIAL DECOMMISSIONING FUNDING STATUS REPORT TO NRC ATTACHMENT D Decommissioning Fund Annual Inflation Rates and Earnings Rates Inflation Earnings Year Rate Rate 2017 2.52% 1.63%

2018 2.84% 2.23%

2019 2.86% 2.98%

2020 2.88% 3.27%

2021 2.89% 3.27%

2022 2.88% 3.27%

2023 2.87% 3.27%

2024 2.86% 3.27%

2025 2.86% 3.27%

2026 2.83% 3.27%

2027 2.83% 3.27%

2028 2.78% 3.27%

2029 2.77% 3.27%

2030 2.77% 3.27%

2031 2.78% 3.27%

2032 2.77% 3.27%

2033 2.76% 3.27%

2034 2.75% 3.27%

2035 2.74% 3.27%

2036 2.73% 3.27%

2037 2.72% 3.27%

2038 2.72% 3.27%

2039 2.72% 3.27%

2040 2.71% 3.27%

2041 2.70% 3.27%

2042 2.70% 3.27%

2043 2.70% 3.27%

2044-2066 2.71% 3.27%