ML030920223

Decommissioning Funding Status Report for Browns Ferry, Sequoyah, and Watts Bar Nuclear Plants

ML030920223
Person / Time
Site:	Browns Ferry, Watts Bar, Sequoyah
Issue date:	03/31/2003
From:	Burzynski M Tennessee Valley Authority
To:	Document Control Desk, Office of Nuclear Reactor Regulation
References
Download: ML030920223 (4)

Text

-I Tennessee Valley Authonty, 1101 Market Street, Chattanooga, Tennessee 37402-2801 March 31, 2003 U.S. Nuclear Regulatory Commission ATTN: Document Control Desk Washington, D.C. 20555-0001 Gentlemen:

In the Matter of ) Docket Nos. 50-259 50-327 Tennessee Valley Authority ) 50-260 50-328 50-296 50-390 TVA - DECOMMISSIONING FUNDING STATUS REPORT - BROWNS FERRY (BEN), SEQUOYAH (SQN), AND WATTS BAR (WBN) NUCLEAR PLANTS Pursuant to the requirements of 10 CFR 50.75(f)(1), TVA is required to report to the NRC on a calendar year basis, beginning on March 31, 1999, and every two years thereafter, on the status of its decommissioning funding for each reactor it owns. This report addresses the decommissioning funding status for BFN Units 1, 2, and 3; SQN Units 1 and 2; and WBN Unit 1. The reporting requirements and corresponding TVA information are provided below.

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

Decommissioning cost estimates were calculated pursuant to the formulas in 10 CFR 50.75(c). Burial cost adjustment factors were taken from NUREG-1307 RIO for the "Non-Atlantic Compact, Direct Disposal with vendor" option.

Bureau of Labor Statistics and Energy indices were taken from the web sites referenced by the NUREG at the end of the calendar year. The estimates in calendar year 2002 dollars are as follows:

Decommissioning Cost Estimates .

.__  :(2002 End-of-Year Dollars, Millions)

Plant Units 'Cost Per Unit Total Plant Cost,'

Browns Ferry 3 $440.5 $1,322 Sequoyah 2 $356.7 $714 Watts Bar 1 $356.7 $357 Pr-ted ecycled papew Av.Z ,41,o <e( r

U.S. Nuclear Regulatory Commission Page 2 March 31, 2003

2. The amount accumulated in the TVA Decommissioning Fund at the end of the calendar year 2002 for items included in 10 CFR 50.75 (b) and (c).

Decommissioning Trust Fund

'(2002 End-of-Year Dollars, Millions)

• Plant - Units x Balance Per Plant Browns Ferry 3 $360.7 Sequoyah 2 $143.9 Watts Bar 1 $35.5

3. A schedule of the annual amounts remaining to be collected for items in 10 CFR 50.75 (b) and (c).

TVA is considering several methods to provide additional funding assurance methods and is assessing the need for future action on an ongoing basis. Current fund balances have primarily been influenced by sizable declines in stock market performance as well as increases in projected decommissioning costs. Moderate market recovery along with the achievement of planned license renewal for BFN within the near term will restore overall funding adequacy. These factors will have a significant impact on the status of the fund and prudent planning obligates us to take them into account. However, TVA recognizes that in developing an appropriate funding strategy it must also take into account the need to provide additional financial assurance should these developments not take place in a timely manner. In doing so, TVA intends to maintain a reasoned balance between ensuring the near term adequacy of available decommissioning funds while avoiding the adverse consequences of over-funding, mindful that decommissioning funding obligations must be met over the long term when actual decommissioning activities will eventually take place.

4. The assumptions used regarding escalation in decommissioning cost, rates of earnings on decommissioning funds, and rates of other factors used in funding projections.

• The assumed escalation in decommissioning costs is 4%.

• TVA assumed a projected annual real rate of return on decommissioning funds of 5%, as authorized by the TVA Board of Directors, TVA's rate-making authority. This rate is consistent with the long term historical investment return associated with U.S. equities.

U.S. Nuclear Regulatory Commission Page 3 March 31, 2003

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

None.

6. Any modifications to a licensee's current method of providing financial assurance occurring since the last submitted report.

None.

7. Any material changes to trust agreements.

None.

If you have any questions regarding this response, please contact me at (423) 751-2508.

Sincerely, Mark 1&- . rzynsk Manager Nuclear Licensing cc: Mr. M. L. Marshall, Jr., Project Manager Nuclear Regulatory Commission One White Flint, North 11555 Rockville Pike Rockville, Maryland 20852-2739 Mr. K. N. Jabbour, Senior Project Manager U.S. Nuclear Regulatory Commission One White Flint, North 11555 Rockville Pike Rockville, Maryland 20852-2739 cc: See page 4

U.S. Nuclear Regulatory Commission Page 4 March 31, 2003 cc: U.S. Nuclear Regulatory Commission Region II Sam Nunn Atlanta Federal Center 61 Forsyth St., SW, Suite 23T85 Atlanta, Georgia 30303-8931 NRC Senior Resident Inspector Browns Ferry Nuclear Plant 10833 Shaw Road Athens, Alabama 35611 NRC Senior Resident Inspector Sequoyah Nuclear Plant 2600 Igou Ferry Road Soddy-Daisy, Tennessee 37379 NRC Senior Resident Inspector Watts Bar Nuclear Plant 1260 Nuclear Plant Road Spring City, Tennessee 37381