ML030930021
| ML030930021 | |
| Person / Time | |
|---|---|
| Site: | Susquehanna  |
| Issue date: | 03/28/2003 |
| From: | Kammeier K Continental Cooperative Services |
| To: | Document Control Desk, Office of Nuclear Reactor Regulation |
| References | |
| Download: ML030930021 (4) | |
Text
V0-212 LocuST STREET P.O. Box 1266 HARRISBURG, PA 17108-1266 717/920-1111 FAX 717/234-1309 www.ccsenergy.com March 28, 2003 U.S. Nuclear Regulatory Commission Attn: Document Control Desk Mail Station OP1-17 Washington, DC 20555 SUSQUEHANNA STEAM ELECTRIC STATION DECOMMISSIONING REPORT OF FINANCIAL ASSURANCE Docket Nos. 50-387 and 50-388 In accordance with 10 CFR 50.75(f)(1), we are submitting the Allegheny Electric Cooperative, Inc.'s decommissioning report of financial assurance for our 10percent interest in Susquehanna Units 1 and 2.
If you have any questions regarding the report, please contact me at 717-233-5704.
Kenneth W. Kammeier
Enclosure:
Decommissioning report cc:
NRC Region I Mr. D. J. Allard, PA DEP Mr. R. V. Guzman, NRC Project Manager Mr. S. Hansell, NRC Sr. Resident Inspector Mr. M. A. Dusaniwskyj, NRC - OWFN A&
A Touchstone Energy Cooperative
NRC Decommissioning Funding Status Report December 31, 2002 Allegheny Electric Cooperative, Inc.
Susquehanna Steam Electric Station Allegheny Electric Cooperative (AEC) hereby submits this Decommissioning Report in compliance with 10 CFR 50.75(f)(1) for its 10 percent share of Susquehanna Units 1 and 2.
Information is submitted to provide Financial Assurance Unit # 1 Unit #2
- 1. The minimum amount of decommissioning funds estimated to be required pursuant to 10 CFR 50.75(b) and (c).
At December 31, 2002
$44,956,012
$44,956,012 AEC's calculation of the NRC minimum formula is reflected in Exhibit 1.
- 2.
The amount accumulated at the end of the calendar year preceding the date of the report for items included in 10 CFR 50.75(b) and (c).
Market Value at Dec. 31,2002
$9,821,170
$9,821,170
- 3.
See Exhibit 2 for a schedule of the annual amounts remaining to be collected.
- 4. The assumptions used regarding escalation in decommissioning cost, rates of earnings on decommissioning funds, and rates of other factors used in funding projections.
Estimated Inflation rate for decommissioning costs 4%
4%
Estimated Earnings rates on decommissioning funds 7.5%
7.5%
Rates of other factors used in funding projections (None)
(None)
AEC sets its own rates, subject to the approval of the U.S.
Department of Agriculture, Rural Utilities Service. AEC believes the above assumptions are reasonable.
- 5. Any power sale contracts upon which licensee is relying to (see below)
(see below) provide financial assurance.
AEC is the wholesale power supplier for the 14 rural electric cooperatives in Pennsylvania and New Jersey. AEC has all requirement contracts with its 14 member distribution cooperatives, which is the source for funding the Trust Fund.
- 6. Modifications to licensee's method of providing financial None None assurance since previous report.
- 7.
Material changes to trust agreement.
Calculation of Escalation Factors Used in Computation of Minimum Financial Assurance Amount for Decommissioning Susquehanna Steam Electric Station Units One And Two Boiling Water Reactor (BWR)
Escalation Factor Formula -
0.65(L) + 0.13(E) + 0.22(B)
Escalation = (0.65 x 1.907) + (0.13 x 1.090) + (0.22 x 8.860)
= (1.23923 + 0.14164 + 1.94920) = 3.330 (L) - Labor - (Bureau of Labor Statistics, Table 4, Compensation, Employment Cost Index, for total compensation, private industry workers, by bargaining status, region and area size Northeast region - Annual Average 2002 Index Number 248.8 January 1986 Index Number 130.5 L = 248.8
=1.907 130.5 (E) - ENERGY (Producer Price Index Commodities, Series ID: WPU0543 and WPU0573)
E = (0.54P + 0.46F)
E = (0.54 x 1.225) + (0.46 x 0.930)
E = 0.66152 + 0.40802 = 1.0895 P - Industrial Power, 500 KW demand - (Commodity 0543)
Annual Average 2002 Index Number 139.9 January 1986 Index Number 114.2 (1)
P= 139.9
= 1.225 114.2 F - Light fuel oils - (Commodity 0573)
Annual Average 2002 Index Number 76.3 January 1986 Index Number 82.0 F = 76.3 0.930 82.0 (B) Waste Burial NUREG - 1307, REV.10, "NRC Report on Waste Burial Charges" Table 2.1 South Carolina Factor 8.860 (1) Represents the national base value of P at January 1986. The base value of P is no longer determined on a regional basis.
Computation of Minimum Financial Assurance Amount for Decommissioning Susquehanna Steam Electric Station Units One and Two Unit 1 Unit 2 Base amount for BWR greater than 3,400 MWt = $135 million
$135,000,000
$135,000,000 The Power Level of Unit 1 and Unit 2 is = 3,441 MWt Ownership percentage Base amount per unit Escalation Factor Escalated Amount per Unit Total Escalated Amount (UJnit 1 + Unit 2) 10%
$13,500,000 3.330
$44,956,012 10%
$13,500,000 3.330
$44,956,012
$89,912,024 AEC Nuclear Decommissioning Trust Expected Contributions Year 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2003-2023 Unit 1 Unit 2 Total Total
$783,689
$834,629
$888,880
$946,657
$1,008,190
$1,073,722
$1,143,514
$1,217,842
$1,297,002
$1,381,307
$1,471,092
$1,566,713
$1,668,549
$1,777,005
$1,892,510
$2,015,524
$2,146,533
$2,286,057
$2,434,651
$2,592,903
$0
$30,426,967
$783,689
$834,629
$888,880
$946,657
$1,008,190
$1,073,722
$1,143,514
$1,217,842
$1,297,002
$1,381,307
$1,471,092
$1,566,713
$1,668,549
$1,777,005
$1,892,510
$2,015,524
$2,146,533
$2,286,057
$2,434,651
$2,592,903
$2,761,442
$33,188,409
$1,567,378
$1,669,258
$1,777,759
$1,893,314
$2,016,379
$2,147,444
$2,287,028
$2,435,684
$2,594,004
$2,762,614
$2,942,184
$3,133,426
$3,337,099
$3,554,010
$3,785,021
$4,031,047
$4,293,065
$4,572,114
$4,869,302
$5,185,806
$2,761,442
$63,615,377