LIC-23-0003, Annual Decommissioning Funding / Irradiated Fuel Management Status Report

Annual Decommissioning Funding / Irradiated Fuel Management Status Report

ML23074A267
Person / Time
Site:	Fort Calhoun
Issue date:	03/15/2023
From:	Uehling T Omaha Public Power District
To:	Office of Nuclear Material Safety and Safeguards, Office of Nuclear Reactor Regulation, Document Control Desk
References
LIC-23-0003
Download: ML23074A267 (1)

Text

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Omaha Public Power District 10 CFR 50.75 10 CFR 50.82 March 15, 2023 LIC-23-0003 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 Fort Calhoun Station Independent Spent Fuel Storage Installation NRC Docket No.72-054

Subject:

Fort Calhoun Station, Unit No. 1, 2023 Annual Decommissioning Funding / Irradiated Fuel Management Status Report

References:

1. Letter from OPPD (T. Burke) to USNRC (Document Control Desk), "Certification of Permanent Cessation of Power Operations," dated August 25, 2016 (LIC-16-0067)

(ML16242A127)

2. Letter from OPPD (T. Burke) to USNRC (Document Control Desk), "Certification of Permanent Removal of Fuel from the Removal of Fuel from the Reactor Vessel," dated November 13, 2016 (LIC-16-0074) (ML16319A254)

3. Letter from OPPD (M. J. Fisher) to USN RC (Document Control Desk), "Fort Calhoun Station, Unit No. 1, Post-Shutdown Decommissioning Activities Report ," dated December 16, 2019 (LIC-19-0007)(ML19351E355)

In accordance with 10 CFR 50.75(f)(1 ), 10 CFR 50.82(a)(8)(v), 10 CFR 50 .82(a)(8)(vi) , and 10 CFR 50.82(a)(8)(vii), Omaha Public Power District (OPPD) is submitting the annual status of decommissioning funding, status of funding for managing irradiated fuel, and the financial assurance status report.

In References 1 and 2, OPPD certified permanent cessation of power operation and permanent removal of fuel from the reactor vessel for the Fort Calhoun Station (FCS) , Unit 1. In Reference 3, OPPD submitted its Post-Shutdown Decommissioning Activities Report (PSDAR) containing a site-specific Decommissioning Cost Estimate (DCE) pursuant to 10 CFR 50.82(a)(4)(i) and 10 CFR 50.82(a)(8)(iii).

Enclosure 1 provides the 2023 Annual Decommissioning Funding/ Irradiated Fuel Management Status Report.

No commitments to the NRC are made in this letter.

If you should have any questions about the enclosed reports, please contact Andrea K. Barker, Regulatory Assurance & Emergency Planning Manager, at 531 -226-6051 .

EMPLOYMENT WITH EQUAL OPPORTUNITY

U.S. Nuclear Regulatory Commission LIC-23-0003 Page 2 Respectfully,

~~

Senior Director Decommissioning TSU/akb Enclosures :

1. 2023 Annual Decommissioning Funding/ Irradiated Fuel Management Status Report c: S. A. Morris, NRG Regional Administrator, Region IV J. D. Parrott, NRG Senior Project Manager S. Anderson, NRG Health Physicist, Region IV

ENCLOSURE 1 OMAHA PUBLIC POWER DISTRICT FORT CALHOUN STATION UNIT NO.1 2023 ANNUAL DECOMMISSIONING FUNDING STATUS REPORT As of December 31, 2022

U.S. Nuclear Regulatory Commission LIC-23-0003 Enclosure 1, Attachment A Page 2 OMAHA PUBLIC POWER DISTRICT FORT CALHOUN STATION UNIT NO.1 2022 ANNUAL DECOMMISSIONING FUNDING STATUS REPORT as of December 31, 2022 10 CFR 50.75 (f) and 50.82(8)

As required by 10 CFR 50.75 (f) and 50.82(8), OPPD reports the following information:

A. Current Decommissioning Cost Estimate As required by 10 CFR 50.82, OPPD completed a site-specific Decommissioning Cost Estimate (DCE) ,

contracting with Energy Solutions LLC for the preparation of the report. The study was performed under the DECON decommissioning alternative method. Based on the DCE (completed in 2023), the total estimated cost to decommission Fort Calhoun Station Unit No . 1 is $685,410,107 in 2022 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 $335,880,518, the current separate estimate of site restoration is

$20,976,981, and the current separate estimate of spent fuel management costs is $328,552,609.

The total cost estimate reported in 2018 dollars was $1,213,203,000 in the DCE, using the SAFSTOR decommissioning alternative method as required by 10 CFR 50.82(a)(8)(iii) (reference 1). The cost estimate included monies anticipated to be spent for operating license termination (radiological remediation) , interim spent fuel storage and site restoration activities.

B. Current Decommissioning Fund Balance The total OPPD Decommissioning Fund(s) balance as of December 31, 2022 was $534,900,641. 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, 2022, the balance in the fund for the NRC minimum decommissioning amount was $154,386,896. As of December 31, 2022, the balance in the funds accumulated for other decommissioning costs was $380,513,744.

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. Annual Decommissioning Collections There were no annual collections for 2016. The annual collections for 2017, 2018, 2019, 2020, 2021, and 2022 were $147,469,000, $156,000,000, $143,004,000, $112 ,552,080, $121,148,000, and $207,567,262 respectively . The total expected future collections for decommissioning are $215,049,330 beginning in 2023 as shown in Attachment B, Column 1. The revenue source for collections is OPPD "cost-of-service" electric rates.

U.S. Nuclear Regulatory Commission LIC-23-0003 , Attachment A Page 3 D. Rates Used to Escalate Decommissioning Costs and Fund Balances The rates used for the escalation of the site-specific DCE and earnings rates on the Decommissioning Fund through the completion of decommissioning are shown in Attachment C. Congressional Budget Office data provided the basis for the DCE inflation rate forecasts. Decommissioning costs are inflated using a blending of the Congressional Budget Office's forecasts for Consumer Price Index, All-Urban and Employment Cost Index, Total Private Compensation. Decommissioning trust earnings are projected using Barclay's forecasted yield on 2-year Treasury notes.

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.

References:

1. Letter from OPPD (M . J. Fisher) to USNRC (Document Control Desk), "Fort Calhoun Station, Unit No. 1, Post-Shutdown Decommissioning Activities Report," dated March 31, 2017 (LIC-17-0033)

(ML17089A759)

2. Letter from OPPD (M . J. Fisher) to USNRC (Document Control Desk), "Fort Calhoun Station Irradiated Fuel Management Plan," dated March 31 . 2017 (LIC-17-0031) (ML17093A594)

U.S. Nuclear Regulatory Commission LIC-23-0003 , Attachment A Page 4 Decommissioning Funding Status Report OMAHA PUBLIC POWER DISTRICT ATTACHMENT A Summary Information as of December 31 , 2022 10 CFR 50 .82 (a) (8) (v)-(vii)

Decommissioning Trust Fund Balances 50.75(f)(1) 50.82(a)(8)(v)(A)

Year Type ofTrust Fund Balance Comments 2022 Decommissionina Trust '90 Plan $ 154,386,896 kB, of 12/31/22 2022 Decommissionina Suppl '92 Plan $ 380,513,744 kB, of 12/31 /22

$ 534,900,641 Other Financial k,surance Methods Beinq Relied Upon 50.75(f)(1)

NONE Prior Years Decommissioning Expenditures 50.82(a)(8)(v)(A)

Year Decom Expenditures Spent Fuel Total Comments 2016 $ 574,826 $ - $ 574,826 2016 Cost in as Spent Dollars 2017 $ 115,251 ,711 $ 4,475,227 $ 119,726,938 2017 Cost in 2017 Dollars 2018 $ 83,845,046 $ 30,408,102 $ 114,253,148 2018 Cost in 2018 Dollars 2019 $ 72,491 ,721 $ 17,382,073 $ 89,873,794 2019 Cost in 2019 Dollars 2020 $ 109,969,342 $ 39,221 ,912 $ 149,191 ,254 2020 Cost in 2020 Dollars 2021 $ 131 ,052,781 $ 7,855,094 $ 138,907,875 2021 Cost in 2021 Dollars 2022 $ 138,050,637 $ 9,667,090 $ 147,717,727 2022 Cost in 2022 Dollars TOTAL $ 651 ,236,064 $ 109,009,498 $ 760,245,562 Prior Year Expenditures Variance to Estimated Cost 50.82(a)(8)(v)(B)

Year Decom Expenditures Spent Fuel Total Comments 2022 Estimated $ 128,210,000 $ 7,157,000 $ 135,367,000 2022 Actual $ 138,050,637 $ 9,667,090 $ 147,717,727 Variance $ (9,840,637) $ (2,510,090) $ (12,350,727 Variance:

• Higher costs were incurred due to acceleration of work activities and disposal of associated radiological waste. The SFM variance was due to incurring costs associated with GTCC which is being stored on-site at the ISFSI. The accelerated schedule had a positive impact on the projected remaining costs for decommissioning work with a net reduction in decom costs of over $170M over the last year. This more than offsets the higher than projected 2022 costs for decom and SFM.

Remaining Decommissioning Estimated Cost 50.82(a)(8)(v)(B) /(vii)(B)

Year Decom Expenditures Spent Fuel Total Comments 2023 $ 356,857,499 $ 328,552,609 $ 685,410,107 Estimated in 2022 Dollars Decommissioning Criteria Upon Which the Estimate is Based 50.75(f)(1) 50.82(a)(8)(v)(B)

DEGON Any Modification to Method of Providinq Financial k,surance 50.75(f)(1) 50.82(a)(8)(vl(C)

No Any Material Changes to Trust Agreement Since Previous Report 50.75(f)(1) 50.82(a)(8)(v)(D)

Updated the Decommissionina Trust '90 aareement in 2021 to allow for a streamlined withdrawal process .

Need for Additional Financial k,surance 50.75(f)(1) 50.82(a)(8)(vi) (vii)(C)

See Attachment B, Column 1, Annual Decommissionina Fund Collections

U.S. Nuclear Regulatory Comm ission LIC-23-0003 , Attachment B Page 5 OMAHA PUBLIC POWER DISTRICT FORT CALHOUN STATION UNIT NO . 1 2023 ANNUAL DECOMMISSIONING FUNDING STATUS REPORT ATTACHMENT B Decommissioning Fund Annual Collections, Earning s, Expenditures and Balances Column 7 Column 1 Column 4 Column 6 Supp lementa l Tota l Annual Column 2 Column 3 Spent Fue l Column 5 Decommissioning Decommissioning Decommissioning Earnings on Trust License Termination Management Site Resto ration Trust Fund Trust Fund 2 3 Year Fund Co ll ectio ns' Funds Expenditu res Expenditures Expenditures Ba lance Ba lance 2022 $ $ $ $ $ $ 154,386,896 $ 380,513,744 2023 $ 23,993,135 $ 16,648,446 $ 113,972,168 $ 6,923,452 $ 6,398,777 $ 88,499,894 $ 359,747,930 2024 $ 11,887,117 $ 12,319,464 $ 117,104,409 $ 7,158,191 $ 6,313,027 $ 28,896,908 $ 312,981,871 2025 $ 5,798,135 $ 8,759,624 $ 113,571,796 $ 7,353,637 $ 9,802,569 $ 4,410,951 $ 221,297,585 2026 $ 5,956,446 $ 7,114,058 $ 14,770,795 $ 7,544,921 $ 279,634 $ 4,555,299 $ 211,628,390 2027 $ 6,111,386 $ 7,300,638 $ $ 10,288,879 $ $ 4,710,635 $ 214,596,200 2028 $ 8,231,103 $ 7,746,703 $ $ 10,558,268 $ $ 4,877,919 $ 219,848,453 2029 $ 8,446,615 $ 8,253,656 $ $ 10,837,516 $ $ 5,058,031 $ 225,531,096 2030 $ 8,670,012 $ 8,792,824 $ $ 11,124,142 $ $ 5,251,936 $ 231,675,885 2031 $ 8,899,314 $ 9,367,352 $ $ 11,417,940 $ $ 5,460,690 $ 238,315,857 2032 $ 9,134,352 $ 9,980,642 $ $ 11,719,440 $ $ 5,685,452 $ 245,486,648 2033 $ 9,375,552 $ 6,620,903 $ $ 12,028,972 $ $ 5,836,116 $ 249,303,467 2034 $ 9,623,178 $ 6,725,110 $ $ 12,346,892 $ $ 5,990,773 $ 253,150,205 2035 $ 9,877,513 $ 6,830,190 $ $ 12,673,432 $ $ 6,149,529 $ 257,025,721 2036 $ 10,138,746 $ 6,936,115 $ $ 13,008,833 $ $ 6,312,491 $ 260,928, 787 2037 $ 10,407,066 $ 7,042,856 $ $ 13,353,341 $ $ 6,479,772 $ 264,858,087 2038 $ 10,682,673 $ 7,150,378 $ $ 13,707,210 $ $ 6,651,486 $ 268,812,214 2039 $ 10,965,768 $ 7,258,648 $ $ 14,070,700 $ $ 6,827,751 $ 272,789,665 2040 $ 11,256,560 $ 7,367,627 $ $ 14,444,080 $ $ 7,008,686 $ 276,788,837 2041 $ 11,555,264 $ 7,477,276 $ $ 14,827,625 $ $ 7,194,416 $ 280,808,021 2042 $ 11,862,100 $ 7,587,551 $ $ 15,221,619 $ $ 7,385,068 $ 284,845,401 2043 $ 12,177,295 $ 7,698,407 $ s 15,626,355 $ $ 7,580,772 $ 288,899,044 2044 $ $ 7,644,157 $ $ 16,042,132 $ $ 7,781,663 $ 280,300,179 2045 s $ 7,415,951 $ $ 16,469,258 $ $ 7,987,877 $ 271,040,658 2046 s $ 7,170,224 $ $ 16,908,053 $ $ 8,199,556 $ 261,091,151 2047 $ $ 6,906,199 $ $ 17,358,842 $ $ 8,416,844 $ 250,421,220 2048 $ $ 6,623,068 $ $ 17,821,961 $ $ 8,639,890 $ 238,999,281 2049 $ s 6,319,993 s $ 18,297,756 s $ 8,868,847 s 226,792,561 2050 $ $ 5,996,105 s s 18,786,582 s $ 9,103,872 $ 213,767,059 2051 $ $ 5,650,503 $ $ 19,288,807 $ $ 9,345,124 $ 199,887,503 2052 $ $ 5,282,251 $ s 19,804,804 $ $ 9,592,770 $ 185,117,304 2053 $ $ 4,890,379 $ $ 20,334,963 $ $ 9,846,979 s 169,418,511 2054 $ $ 4,473,880 s s 20,879,681 s s 10,107,924 $ 152,751, 765 2055 $ $ 4,031,710 s s 21,439,367 $ s 10,375,784 $ 135,076,248 2056 s s 3,457,365 s $ 29,970,857 s $ 10,650,742 $ 108,287, 798 2057 s s 2,631,516 s $ 39,272,093 $ $ 10,932,986 $ 71,364,977 2058 $ s 1,646,564 s $ 40,326,925 $ $ 11,222,711 s 32,394,893 2059 $ $ 824,111 s 11,369,467 $ 13,668,684 s $ (0) $ 19,403,563 2060 $ $ 514,194 $ $ $ $ (0) $ 19,917,758 2061 $ $ $ $ $ $ (0) $ 19,917,758

$ 215,049,330 $ 256,456,636 $ 370,788,635 $ 592,906,208 $ 22,794,007 An nual Decommissioning Fund Co llections for 2022 were S207 ,567 ,262 wi th Decommissioning Expendiluresof $147 ,717,727 .

2 In 2021 , LTE expenses started being disbursed from the Decommissioning Trust f90) Fund .

At l col lections and some expenditures flow through the Decommissioning Supplementa l Trust through 2022 . Continuing in 2023 , s:ime LTE expenses will be paid out of the Decommissioning TruS.

U.S . Nuclear Regulatory Commission LIC-23-0003 , Attachment C Page 6 ATTACHMENT C Decommissioning Funds Annual Inflation and Earning Rates Inflation Earnings Year Rate Rate 2023 4.83% 3.45%

2024 3.39% 3.16%

2025 2.73% 3.14%

2026 2.59% 3.27%

2027 2.56% 3.41%

2028 2.61% 3.55%

2029 2.63% 3.69%

2030 2.63% 3.83%

2031 2.62% 3.97%

2032 2.62% 4.12%

2033-2060 2.62% 2.65%