LR-N07-0067, Units 2 & 3 - Decommissioning Funding Status Report

Units 2 & 3 - Decommissioning Funding Status Report

ML070960252
Person / Time
Site:	Peach Bottom, Salem, Hope Creek
Issue date:	03/30/2007
From:	Levis W Public Service Enterprise Group
To:	Document Control Desk, NRC/NRR/ADRO
References
LR-N07-0067
Download: ML070960252 (4)

Text

William Levis P. 0. Box 236, Hancocks Bridge, NJ 08038 President and CNO tel: 856.339.1100 fax: 856.339.1104 email: william.levis@pseg.com Nuclear L. L. C.

10CFR5O.75(f)

LR-N07-0067 MAR 3 0 United States Nuclear Regulatory Commission ATTN: Document Control Desk Washington, DC 20555-0001 Salem Generating Station Units 1 and 2 Facility Operating License Nos. DPR-70 and 75 Docket Nos. 50-272 and 50-311 Hope Creek Generating Station Facility Operating License No. NPF-57 Docket No 50-354 Peach Bottom Generating Stations Units 2 and 3 Facility Operating License Nos. DPR-44 and 56 Docket Nos. 50-277 and 50-278

Subject:

Decommissioning Funding Status Report This letter submits the status report of the decommissioning funds for the subject facilities in accordance with 10CFR5O. 75(f)( 1).

1. The minimum decommissioning fund estimate, pursuant to 10CFR5O.75(b) and (c).

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

Hope Creek 472,414 Salem Unit #1 204,368 Salem Unit #2 204,368 Peach Bottom Unit #2 245,542 Peach Bottom Unit #3 Total 1,392,178 Aoo

Document Control Desk Page 2 LR-N07-0067

2. Amount accumulated as of December 31, 2006.

The amount accumulated in both Qualified and Non-Qualified Trusts on December 31, 2006, for each respective unit, is disclosed in the following Table:

Plant Qualified Trust Non-Qualified Trust Total

($ Thousands) ($ Thousands) ($ Thousands)

Hope Creek 369,431 6,031 375,641 Salem Unit #1 187,224 58,888 246,113 Salem Unit #2 205,658 19,183 224,841 Peach Bottom Unit #2 164,598 42,366 206,965 Peach Bottom Unit #3 175,9333,42046 Total 1,102,843 160,002 1,262,846

3. Annual amounts remaining to be collected as of December 31, 2006.

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 10CFR5O.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 $446.3 million, as of December 31, 2006. The calculation is supported in Appendix A.

Document Control Desk Page 3 LR-N07-0067 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 Francis D.

Possessky at (856) 339-1160.

Sincerely, ON;Q)

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 Mr. R. Ennis, Project Manager - Hope Creek and Salem Mail Stop 08B13 Washington, DC 20555-0001 USNRC Senior Resident Inspector - Hope Creek (X24)

USNRC Senior Resident Inspector - Salem (X24)

Mr. K. Tosch, Manager IV Bureau of Nuclear Engineering P0 Box 415 Trenton, New Jersey 08625

Calculation of NRC Funding Requirements for Year 2006 Appendix A Dollars in(000's)

PSIEG NUCLEAR S Remaining NRC Decommissioning Accumulated Fair Market Value Years to End Funding Requirements Funding Requirements of External Fund Operating License of Operating lAW IOCFR5O.75 as of December 31, 2006 as of December 31, 2006 Prepaid Station and Unit Expiration Date License Life (note 1, 2) (note1, 3) (notel1) Amounts Hope Creek Unit No. I April 11, 2026 19 $472,414 $244,588 $375,461 $130,873 Salem Unit No. 1 August 13, 2016 10 $204,368 $155,194ý $246,113 $90,919 Salem Unit No. 2 April 18, 2020 13 $204,368 $136,381 $224,841 $88,460 Peach Bottom Unit No. 2 August 8, 2033 27 $245,542 $136,595 $206,965 $70,369 Peach Bottom Unit No. 3 July 2, 2034 28 $265,486 $143,714 $209,467 $65,753

$1,392,178 $ 816,471 $1,262,846 $446,374 note 1: Amounts represent PSEG Nucleaes share of funding and are in year 2004 dollars note 2: Funding Requirements calculated using guidance in Regulatory Guide 1.159 Revision 1 and Draft Regulatory Guide DG-1 085 note 3: Accumulated Funding = NRC Decommissioning Funding Requirements X 40 year Licensed Life - Remaining Years to End of Operating License Life Requirements* lAW 10CFR50.75 40 year Licensed Life

• Consistent with method in GAOIRCED-99-75 'Better Oversight Needed to Ensure Accumulation of Funds to Decommission Nuclear Power Plants" and NRC Document SECY-99-1 70 "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 Life Requirements* lAW IDCFR50.75 60 year Licensed Life NRC-2006 Annual Filing.xls Appendix eie Apni A Revised