LR-N05-0140, Units 2 & 3, NRC Decommissioning Funding Status Report

Units 2 & 3, NRC Decommissioning Funding Status Report

ML050960381
Person / Time
Site:	Peach Bottom, Salem, Hope Creek
Issue date:	03/30/2005
From:	Perino C Public Service Enterprise Group
To:	Document Control Desk, Office of Nuclear Reactor Regulation
References
LR-N05-0140
Download: ML050960381 (4)

Text

PSEG Nuclear LLC

.4 P.O. Box 236, Hancocks Bridge, New Jersey 08038-0236 MAR 3 0 2005 O PSEG Nuclear LLC LR-N05-0140 United States Nuclear Regulatory Commission Document Control Desk Washington, DC 20555 NRC DECOMMISSIONING FUNDING STATUS REPORT SALEM, HOPE CREEK AND PEACH BOTTOM GENERATING STATIONS DOCKET NOS. 50-272, 50-311, 50-354, 50-277, AND 50-278 FACILITY OPERATING LICENSE NOS. DPR-70, 75, NPF-57 AND DPR-44, 56 This letter submits the status report of the decommissioning funds for the subject facilities in accordance with 10CFR50.75(fXl).

1. The minimum decommissioning fund estimate, pursuant to 10 CFR 50.75 (b) and (c).

NRC Minimum Decommissioning Plant Funding Requirements (PSEG Nudear Share) ($ Thousands)

Hope Creek 459,964 Salem Unit #1 215,314 Salem Unit #2 215,314 Peach Bottom Unit #2 235,085 Peach Bottom Unit #3 2356085 Total 1,360,762

2. Amount accumulated as of December 31, 2004.

The amount accumulated in both Qualified and Non-Qualified Trusts at December 31, 2004, for each respective Unit, is disclosed in the following Table:

($ Thousands)

Plant Qualified Trust Non-Qualified Trust Total Hope Creek 319,446 4,995 324,441 Salem Unit #1 163,263 48,896 212,158 Salem Unit #2 179,429 15,921 195,349 Peach Bottom Unit #2 142,914 35,194 178,108 Peach Bottom Unit #3 152,769 27,872 180.641 Total 957,820 132,878 1,090,698 A~ooi 95-2168 REV. 7/99

Document Control Desk 2 LR-N05-140 MAR 3 0 2005

3. Annual amounts remaining to be collected as of December 31, 2004.

None'

4. Assumptions used regarding escalation in decommissioning costs, rates of earnings on decommissioning funds, and rates of other factors used in funding projections.

For the purpose of determining if the NRC's minimum requirements are met, PSEG has calculated that the current fund balances and annual funding levels, together with earnings at a 2% annual rate of return, as permitted by 10CFR50.75(e)(1)(ii),

satisfy NRC's minimum funding assurance requirements.

5. Any contracts upon which the licensee is relying pursuant to 10 CFR 50.75(e)(1)(v).

The licensee is not relying upon contracts in this regard.

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 $364.8 million, as of December 31, 2004. 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.

7. Any material changes to trust agreements.

None.

Should you have any questions regarding this report, please contact Michael Mosier at 856-339-5434.

Christina L. Perino Director - Regulatory Assurance Appendix A

' New Jersey Board of Public Utilities (BPU) decision dated July 9, 2003.

Document Control Desk 3 VIUR3 0 2005 LR-N05-0140 C Mr. S. Collins, Administrator - Region I U. S. Nuclear Regulatory Commission 475 Allendale Road King of Prussia, PA 19406 U. S. Nuclear Regulatory Commission ATTN: Mr. D. Collins, Licensing Project Manager - Hope Creek/Salem Mail Stop 08C2 Washington, DC 20555-0001 USNRC Senior Resident Inspector - Salem (X24)

USNRC Senior Resident Inspector - Hope Creek (X24)

Mr. K. Tosch, Manager IV Bureau of Nuclear Engineering PO Box 415 Trenton, New Jersey 08625

Calculation of NRC Funding Requirements for Year 2004 Appendix A Dollars In (000's)

A" **

Remaining NRC Decommissiong Accumulated Fair Market Value Years to End Funding Requirements Funding Requirements of External Fund Operating Ucense of Operating lAW IOCFR50.75 as of December 31, 2004 as of December 31, 2004 Sation and Unit Expiration Date Lcense Ufe (note 1,2) (note 1, 3) (note 1)

Hope Creek Unit No. 1 April 11, 2026 22 $459,964 $206,984 $324,441 Salem Unit No. 1 August 13, 2016 12 $215,314 $150,720 $212,158 Salem Unit No. 2 April 18, 2020 16 $215,314 $129,188 $195,349 Peach Bottom Unit No. 2 August 8, 2033 29 $235,085 $121,461 $178,108 Peach Bottom Unit No. 3 July 2, 2034 30 $235,085 $117,543 $180,641

$1,360,762 $ 725,895 $1,090,698 note 1: Amounts represent PSEG Nudleal's share of Unding and are In year 2004 dollars note 2: Funding Requirements calculated using guidance In Regulatory Guide 1.159 Revision I and Draft Reguistory Guide DG-1085 note 3: Accumulated Funding = NRC Decommissioning Funding Requirements X 40 year Lcensed Life - Remaining Years to End of Operating License Life Requirementsl IAW 10CFR50.75 40 year Licensed Life

• Consistent with method in GAO/RCED-99-75 "Better Oversight Needed to Ensure Accumulation of Funds to Decommission Nuclear Power Plants" and NRC Document SECY-99-170 "Summary of Decommissioning Fund Status Reports."

Peach Bottom Units Only Accumulated Funding = NRC Decommissioning Funding Requirements X 60 year Licensed Life - Remaining Years to End of Operating License Lif Requirements^ IAW I0CFRSO.75 60 year Licensed Life NRC-2004 Annual Revised2 Appendix A Revised