ML030930058

Decommissioning Funding Status Reports

ML030930058
Person / Time
Site:	Monticello, Palisades, Kewaunee, Point Beach, Prairie Island, Duane Arnold
Issue date:	03/31/2003
From:	Weinkam E Nuclear Management Co
To:	Document Control Desk, Office of Nuclear Reactor Regulation
References
Download: ML030930058 (11)

Text

T Committed to Nuclear Excellence Nuclear Management Company, LLC March 31, 2003 10 CFR 50.75(f)(1)

U.S. Nuclear Regulatory Commission ATTN: Document Control Desk Washington, D.C. 20555 DUANE ARNOLD ENERGY CENTER DOCKET 50-331 LICENSE No. DPR-49 KEWAUNEE NUCLEAR POWER PLANT DOCKET 50-305 LICENSE No. DPR-43 MONTICELLO NUCLEAR GENERATING PLANT DOCKET 50-263 LICENSE No. DPR-22 PALISADES NUCLEAR PLANT 50-255 DPR-20 POINT BEACH NUCLEAR PLANT 50-266 and 50-301 DPR-24 and DPR-27 PRAIRIE ISLAND NUCLEAR GENERATING PLANT 50-282 and 50-306 DPR-42 and DPR-60 DECOMMISSIONING FUNDING STATUS REPORTS The attached decommissioning funding status reports are being submitted in accordance with 10 CFR 50.75(f)(1), "Reporting and Recordkeeping for Decommissioning Planning," for the aforementioned plants. As holder of the plant operating licenses, Nuclear Management Company, LLC is submitting these reports on behalf of the plant owners and co-owners identified in each respective report.

The financial information presented herein, current as of December 31, 2002, reflects information provided to Nuclear Management Company, LLC by each respective plant owner or co-owners.

In item one of the reports, each owner estimated the minimum decommissioning cost using formulas in section 10 CFR 50.75(c). This estimate includes only those decommissioning costs incurred by licensees to remove a facility or site safely from service and reduce residual radioactivity to levels that permit: (1) release of the property for unrestricted use and termination of the license; or (2) release of the property under restricted conditions and termination of the license. The cost of dismantling or demolishing non-radiological systems and structures is not included in the NRC decommissioning cost estimates beyond removal costs necessary to terminate the license. The costs of managing and storing spent fuel on site until transfer to Department of Energy are also not included in the cost estimates.

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700 First Street. Hudson, Wisconsin 54016 Telephone: 715.377.3300 www.nmcco.com

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Decommissioning Funding Status Reports Page 2 This letter contains no new commitments and no revisions to existing commitments.

Please contact James Holthaus, (715) 377-3380 with questions concerning the information provided in this submittal.

Sincerely, Edward J.veinkam Directo rweulatory Services Nuclear Management Company, LLC CC Regional Administrator, USNRC, Region III Project Managers, USNRC, NRR - Duane Arnold Energy Center, Kewaunee Plant, Monticello Generating Plant, Palisades Plant, Point Beach Plant, Prairie Island Generating Plant NRC Resident Inspectors - Duane Arnold Energy Center, Kewaunee Plant, Monticello Generating Plant, Palisades Plant, Point Beach Plant, Prairie Island Generating Plant Attachments

ATTACHMENTS NUCLEAR MANAGEMENT COMPANY, LLC Attachment Owner(s)

Plant 1

Consumers Energy Company Palisades (PNP) 2 Wisconsin Electric Power Company Point Beach 1 (PBNP1) 3 Wisconsin Electric Power Company Point Beach 2 (PBNP2) 4

a. Wisconsin Public Service Corp Kewaunee (KNPP)

b. Wisconsin Power & Light Company (WP&L) 5 Xcel Energy Prairie Island 1 (P11) 6 Xcel Energy Prairie Island 2 (P12) 7 Xcel Energy Monticello (MNGP) 8

a. Interstate Power and Light (IPL)

Duane Arnold (DAEC)

b. Central Iowa Power Cooperative (CIPCO)

c. Corn Belt Cooperative (Corn Belt)

MARCH 27, 2003 8 PAGES FOLLOW

ATTACHMENT 1 Consumers Energy Company Palisades Nuclear Plant Docket No. 50-255 License No. DPR-20 Decommissioning Funding Status Report As provided in 10 CFR 50.75(f)(1), each power reactor licensee is required to report to the NRC on a calendar year basis beginning March 31, 1999, and every two years thereafter on the status of its decommissioning funding for each reactor or share of reactor it owns.

1.

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

2.

The amount accumulated at the end of the calendar year preceding the date of the report.

[

3.

A schedule of the annual amounts remaining to be collected and deposited in external sinking fund as approved by Michigan Public Service Commission (MPSC) in 1999.

4.

Assumptions used regarding escalation in decommissioning cost, rates of earnings on decommissioning funds, and rates of other factors used in funding projects.

a. Cost escalation rate prescribed by 1999 MPSC Order

[

b. Rates of earnings on decommissioning funds (Afler-tax): L The combine earnings rates (6.4%) on Qualified and

[

Non-qualified trusts funds is less than 2 percent real rate of return (i.e. rate of earnings minus cost escalation rate).

5.

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

Consumers Energy has not relied on contract obligations to meet its NRC funding assurance.

6.

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

Consumers Energy has not modified its method of providing financial assurance.

l

$337,925,840 Total External l

$424,998,550 AnntualAnnuity

$5,500,000

1. Years to Collect 5 yrs Escalation Rate l 4.54%

Qualified Trust I Non-Qualified 7.18%

1 5.13%

None None

7.

Any material changes to trust agreements.

Consumers Energy has not modified its trust agreement since the last filing. The Michigan Public Service Commissioning continues to regulate decommissioning funding for Palisades None Page 1 of8

ATTACHMENT 2 Wisconsin Electric Power Company Point Beach Nuclear Plant, Unit 1 Docket No. 50-266 License No. DPR-24 Decommissioning Funding Status Report As provided in 10 CFR 50.75(f)(1), each power reactor licensee is required to report to the NRC on a calendar year basis, beginning on March 31, 1999, and every 2 years thereafter, on the status of its decommissioning funding for each reactor or share of reactor it owns.

1.

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

2.

The amount accumulated at the end of the calendar year preceding the date of the report.

3.

A schedule of the annual amounts remaining to be collected.

4.

Assumptions used regarding escalation in decommissioning cost, rates of earnings on decommissioning funds, and rates of other factors used in funding projects.

a. Cost escalation rates prescribed by Public Labor Service Commission of Wisconsin:

4.09%

l

$303,880,000 I Pre-Tax External l

$270,165,629 l Annual Annuity

$9,963,385

1. Years to Collect 8 yrs I Burial I Energy I Other 9.16%

3.02%

8.00%

1

b. Rates of earnings on decommissioning funds (Al I Equity I Fixed I I

Qualified Trust:

7.52%

4.01%

Non-Qualified:

6.45%

3.89%

5.

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

6.

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

Wisconsin Electric continue to use the external sinking fund method of providing decommissioning funding assurance.

7.

Any material changes to trust agreements.

There have been no material changes to the Point Beach Decommissioning Trust Agreement.

None None None Page 2 of 8

ATTACHMENT 3 Wisconsin Electric Power Company Point Beach Nuclear Plant, Unit 2 Docket No. 50-301 License No. DPR-27 Decommissioning Funding Status Report As provided in 10 CFR 50.75(f)(1), each power reactor licensee is required to report to the NRC on a calendar year basis, beginning on March 31, 1999, and every 2 years thereafter, on the status of its decommissioning funding for each reactor or share of reactor it owns.

1.

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

2.

The amount accumulated at the end of the calendar year preceding the date of the report.

3.

A schedule of the annual amounts remaining to be collected.

4.

Assumptions used regarding escalation in decommissioning cost, rates of earnings on decommissioning funds, and rates of other factors used in funding projects.

a. Cost escalation rates prescribed by Public Labor Service Commission of Wisconsin:

4.09%

1

$303,880,000 I Pre-Tax External

$277,579,733 Annual Annuity

$7,630,923

1. Years to Collect 10 ys I Burial I Energy I Other l 9.16%

l 3.02%

l 8.00%

b. Rates of earnings on decommissioning funds (After-tax):

Equity Fixed Income Qualified Trust:

7.52%

4.01%

Non-Qualified:

6.45%

3.89% I

5.

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

6.

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

Wisconsin Electric continue to use the external sinking fund method of providing decommissioning funding assurance.

7.

Any material changes to trust agreements.

There have been no material changes to the Point Beach Decommissioning Trust Agreement.

None None None Page 3 of 8

ATTACHMENT 4 Wisconsin Public Service Corporation & Wisconsin Power & Light Company Kewaunee Nuclear Power Plant Docket No. 50-305 License No. DPR-43 Decommissioning Funding Status Report As provided in 10 CFR 50.75(f)(1), each power reactor licensee is required to report to the NRC on a calendar year basis, beginning on March 31, 1999, and every 2 years thereafter, on the status of its decommissioning funding for each reactor or share of reactor it owns.

1.

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

1

$ 307,200,000

2.

The amount accumulated at the end of the calendar year preceding the date of the report.

3.

Plant Owners Ownership %

External Fund Wisconsin Public Service Corp. (WPSC) 59.0%

$299,746,000 Wisconsin Power & Light Company (WP&L) 41.0%

$228,086,447 Total Pre-Tax:

$527,832,447 A schedule of the annual amounts remaining to be collected.

Plant Owners AnnualAnnuity Years to Collect Wisconsin Public Service Corp. (WPSC)

$2,612,806 10 yrs Wisconsin Power & Light Company (WP&L)

$2,876,000 10 yrs Total

$5,488,806 10 yrs

4.

Assumptions used regarding escalation in decommissioning cost, rates of earnings on decommissioning funds, and rates of other factors used in funding projects.

a. Cost escalation rates prescribed by Public Labor Service Commission of Wisconsin:

3.81%

b. Rates of earnings on funds (After-tax):

5.

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

There are no current contracts being relied upon pursuant to 10 CFR 50.75(e)(1)(v) to decommission KNPP.

6.

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

The KNPP currently recovers the estimated total cost of decommissioning through rates established by the Public Service Commission of Wisconsin and by FERC for the wholesale customers.

7.

Any material changes to trust agreements.

There have been no material changes to the trust agreements.

I Burial I Energy I Other I

_ 9.16%

1 2.82%

1 8.00%

I VPSC l

5.32%

lWP&L l

6.04%

None None None Page 4 of 8

ATTACHMENT 5 Xcel Energy Prairie Island Generating Plant Unit 1 Docket No. 50-282 License No. DPR-42 Decommissioning Funding Status Report As provided in 10 CFR 50.75(f)(1), each power reactor licensee is required to report to the NRC on a calendar year basis beginning March 31, 1999, and every two years thereafter on the status of its decommissioning funding for each reactor or share of reactor it owns.

1.

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

2.

The amount accumulated at the end of the calendar year preceding the date of the report.

These funds are being transferred to the external fund on a prescribed schedule.

3.

A schedule of the annual amounts remaining to be collected.

4.

Assumptions used regarding escalation in decommissioning cost, rates of earnings on decommissioning funds, and rates of other factors used in funding projects.

5.

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

l

$307,000,000 External

$191,880,641 Internal

$41,060,572 Total

$232,941,213 l

Annual Annuity

$14,285,424 l

1. Years to Collect l 4.8 yrs J

Escalation Factor 4.35%

External Fund Rate of Earning 5.5%

None

6.

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

None

7.

Any material changes to trust agreements.

None Page 5 of 8

ATTACHMENT 6 Xcel Energy Prairie Island Generating Plant Unit 2 Docket 50-306 License DPR-60 Decommissioning Funding Status Report As provided in 10 CFR 50.75(f)(1), each power reactor licensee is required to report to the NRC on a calendar year basis beginning March 31, 1999, and every two years thereafter on the status of its decommissioning funding for each reactor or share of reactor it owns.

1.

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

2.

The amount accumulated at the end of the calendar year preceding the date of the report.

These funds are being transferred to the external fund on a prescribed schedule.

3.

A schedule of the annual amounts remaining to be collected.

4.

Assumptions used regarding escalation in decommissioning cost, rates of earnings on decommissioning funds, and rates of other factors used in funding projects.

5.

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

l

$307,000,000 External

$206,001,020 Internal

$38,644,024 Total

$244,645,044 l AnnualAnnuity l

$19,976,052]

l # Years to Collect]

4.8 yrs Escalation Factor 4.35%

External Fund Rate of Earning 5.5%

None

6.

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

None

7.

Any material changes to trust agreements.

None Page 6 of 8

ATTACHMENT 7 Xcel Energy Monticello Generating Plant Docket No. 50-263 License No. DPR-22 Decommissioning Funding Status Report As provided in 10 CFR 50.75(f)(1), each power reactor licensee is required to report to the NRC on a calendar year basis beginning March 31, 1999, and every two years thereafter on the status of its decommissioning funding for each reactor or share of reactor it owns.

1.

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

2.

The amount accumulated at the end of the calendar year preceding the date of the report.

These funds are being transferred to the external fund on a prescribed schedule.

3.

A schedule of the annual amounts remaining to be collected.

4.

Assumptions used regarding escalation in decommissioning cost, rates of earnings on decommissioning funds, and rates of other factors used in funding projects.

l

$395,300,0000 External

$219,166,555 Internal

$77,097,226 Total

$296,263,781 AnnualAnnuity

$17,171,520

1. Years to Collect l 7.7 yrs Escalation Factor 4.35%

External Fund Rate of Earning 5.5%

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 method of providing financial assurance occurring since the last submitted report.

None

7.

Any material changes to trust agreements.

None Page 7 of 8

C I

ATTACHMENT 8 IPL, CIPCO & Corn Belt Duane Arnold Energy Center Docket No. 50-331 License No. DPR-49 Decommissioning Funding Status Report As provided in 10 CFR 50.75(0(1), each power reactor licensee is required to report to the NRC on a calendar year basis beginning March 31, 1999, and every two years thereafter on the status of its decommissioning funding for each reactor or share of reactor it owns.

1.

The minimum decommissioning fund estimate Pursuant to 10 CFR 50.75(b) and (c).

2.

3.

Utility

(% Ownership)

NRC Minimum IPL (70%)

$280,086,356 CIPCO (20%)

80,024,673 Corn Belt (10%)

40,012,337 Total

$400,123,366 The amount accumulated at the end of the calendar ar preceding the date of the report.

Utility (% Ownership)

Internal External Total IPL (70%)

$21,709,000 (a)

$123,269,129

$144,978,129 CIPCO (20%)

16,265,387 (b) 17,852,448 34,117,835 Corn Belt (10%)

6,084,321 (a) 11,800,658 17,884,979 Totals

$44,058,708

$152,922,235

$196,980,943 (a) IPL & Corn Belt is not relying upon this Internal Fund Reserve for purposes of meeting NRC's decommissioning funding assurance requirements.

(b) These funds have been invested for purposes of funding decommissioning.

A schedule of the annual amounts remaining to be collected.

eginning 2003 and Ending 2014)

Utility (% Ownership)

Annual Annuity Projected Funds Ending 2014

• WPL (70%)

$10,944,996

$486,356,031 CIPCO (20%)

$1.1 to $3.2 mil 120,493,195 Corn Belt (10%)

$1.1 to $1.9 mil 70,086,021 Total

$676,935,247

• IPL has requested Iowa Utilities Board (IUB) approval for increases in the annual funding levels. The IPL request to the IUB is based on a site-specific study that includes radiological decontamination, site restoration and related spent fuel storage, the total of which exceeds the NRC minimum funding calculation.

4.

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

Utility (% Ownership)

Escalation Factor Rate of Earnings IPL (70%) Composite Rate of Return after tax.

4.25%

6.25%

CIPCO (20%) Assumes no income tax on earnings.

4%

8%

Corn Belt (10%) Assumes no income tax on eamings.

5%

l 10%

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 method of providing financial assurance occurring since the last submitted report.

IPL, CIPCO & Corn Belt continue to use the external sinking fund method of providing decommissioning funding assurance.

None

7.

Any material changes to trust agreements.

IPL, CIPCO and Corn Belt reported no material changes to their respective trust agreements.

None Page 8 of 8