LR-N03-0140, NRC Decommissioning Funding Status Report
| ML030920537 | |
| Person / Time | |
|---|---|
| Site: | Peach Bottom, Salem, Hope Creek  |
| Issue date: | 03/25/2003 |
| From: | Keiser H Public Service Enterprise Group |
| To: | Document Control Desk, Office of Nuclear Reactor Regulation |
| References | |
| LR-N03-0140 | |
| Download: ML030920537 (4) | |
Text
.I Harold W. Keiser President & Chief Nuclear Officer PSEG Nuclear LLC P 0 Box 236. Hancocks Bridge, NJ 08038 856 339 1100 MAR 2 5 2003 LR-N03-0140 N
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NuclearLTLC United States Nuclear Regulatory Commission Document Control Desk Washington, DC 20555 NRC DECOMMISSIONING FUNDING STATUS REPORT HOPE CREEK GENERATING STATION - NPF-57 SALEM GENERATING STATION, UNITS 1 & 2-DPR-70/DPR-75 PEACH BOTTOM STATION, UNITS 2 & 3 - DPR-44/DPR-56 Gentlemen:
This letter submits the status report of the decommissioning funds for the subject facilities in accordance with 10CFR50.75(f)(1).
- 1. The minimum decommissioning fund estimate, pursuant to 10 CFR 50.75 (b) and (c).
Plant Hope Creek Salem Unit #1 Salem Unit #2 Peach Bottom Unit #2 Peach Bottom Unit #3 Total NRC Minimum Decommissioning Funding Requirements (PSEG Nuclear Share) ($ Millions) 439.5 206.9 206.9 225.4 225.4 1,304.1
- 2. Amount accumulated as of December 31, 2002.
The amount accumulated in both Qualified and Non-Qualified Trusts at December 31, 2002, for each respective Unit, is disclosed in the following Table:
Plant Hope Creek Salem Unit #1 Salem Unit #2 Peach Bottom Unit #2 Peach Bottom Unit #3 Total Qualified Trust 225.7 115.6 125.8 100.8 107.4 675.3
($ Millions)
Non-Qualified Trust 3.4 33.6 10.9 24.1 19.1 91.1 Total 229.1 149.2 136.7 124.9 126.5 766.4 Aoo I k"'
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'C MAR 2 5 2003 Document Control Desk 2
LR-N03-0140
- 3. Annual amounts remaining to be collected as of December 31, 2002.
The following chart shows the amounts to be collected through a societal benefit clause as authorized by its rate setting authority, the New Jersey Board of Public Utilities, effective January 1,1993, based on a site specific nuclear decommissioning study.
($ Millions)
Plant Collections Hope Creek 13.4 Salem Unit #1 2.5 Salem Unit #2 4.2 Peach Bottom Unit #2 4.3 Peach Bottom Unit 5.2
- 3 Total 29.6
- 4. Assumptions used regarding escalation in decommissioning costs, rates of earnings on decommissioning funds, and rates of other factors used in funding projections; The following escalation rates, on average, have been used to project future costs to decommission the Company's respective share of 5 nuclear units: labor 3.36%; low level radioactive waste disposal 3.75%; energy costs 3.24%; and Producer Price Index at 2.67%.
In the rate setting process, the New Jersey Board of Public Utilities authorized a 6.1% after-tax rate of return for trust funds. PSEG Nuclear, in performing the NRC 2% Test, applied a more conservative earnings rate on its Trust Fund assets, equal to 2% plus an average Producer Price Index of 2.67%, for a total asset earnings rate of 4.67%.
No other factors were considered in funding projections other than those identified above.
- 5. Any contracts upon which the licensee is relying pursuant to 10 CFR 50.75(e)(1)(ii)(c);
The licensee is not relying upon contracts in this regard.
95-4933
I Document Control Desk 3
MAR 2 5 2003 LR-N03-01 40
- 6. Any modifications to a licensee's current method providing financial assurance occurring since the last submitted report.
PSEG Nuclear has prepaid its nuclear decommissioning liability in the amount (aggregate) by
$211.3 million, as of December 31, 2002. The calculation is supported in Appendix A.
Appendix A calculates an accumulated funding requirement based upon annual contributions requirements since first filing in 1991. This method is consistent with previous submittals and provides an accurate measure for annual growth requirements of the funds.
In reviewing previous filings, PSEG Nuclear determined that a minor error existed in the annual contribution requirements in prior submitted Appendix B calculations, however, the minor error was not material in the determination of adequacy of funding. In addition, Appendix B showed annual contribution requirements on a yearly basis which provided no additional benefit and duplicated information contained in Appendix A. Consequently, the Appendix B information was not included in this filing.
- 7. Any material changes to trust agreements. No Should you have any questions regarding this report, please contact Mr. Gabor Salamon at 856-339-5296.
Sincerely,
/rbd Attachment 95-4933
LR-N03-01 40 Calculation of NRC Funding Requirements for Year 2002 Dollars In (000's)
Appendix A
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g o ll 11.1 Op erain License~
Sation and Unit Hope Creek Unit No. I Salem Unit No. 1 Salem Unit No. 2 Peach Bottom Unit No. 2 Peach Bottom Unit No. 3 Operating License Expiration Date April 11,2026 August 13, 2016 April 18, 2020 August 8, 2013 July 2, 2014 Remaining Years to End of Operating License Life 24 14 NRC Decommissiong Funding Requirements IAW 10CFR50.75 (note 1, 2)
Accumulated Funding Requirements as of December 31, 2002 (note 1, 3)
$439,453
$146,484
$206,867
$95,477 Fair Market Value of External Fund as of December 31, 2002 (note 1) 229,168 149,184 136,680 124,843 126,488 766,363 18
$206,867
$82,747 11
$225,443
$117,622 12
$225,443 1,304,073
$112,722 555,052 note 1:
note 2 note 3 Amounts represent PSEG Nuclears share of funding and are In year 2002 dollars Funding Requirements calculated using guidance in Regulatory Guide 1.159 Revision 1 and Draft Regulatory Guide DG-1085 Accumulated Funding = NRC Decommissioning Funding Requirements lAW Current year (2002) - Baseline year (1990)
Requirements*
IOCFR50 75 (Operating License Expiration year - Baseline year (1990))
- Consistent with method in GAO/RCED-99-75 'Better Oversight Needed to Ensure Accumulation of Funds to Decommission Nuclear Power Plantse and NRC Document SECY-99-170 'Summary of Decommissioning Fund Status Reports "