ML030930635
| ML030930635 | |
| Person / Time | |
|---|---|
| Site: | Wolf Creek  |
| Issue date: | 03/28/2003 |
| From: | Larson M Wolf Creek |
| To: | Document Control Desk, Office of Nuclear Reactor Regulation |
| References | |
| CT 03-0021 | |
| Download: ML030930635 (5) | |
Text
WOLF CREEK
'NUCLEAR OPERATING CORPORATION Mark S. Larson Controller-Treasurer MAQ 2 Qnns CT 03-0021 U.S. Nuclear Regulatory Commission ATTN: Document Control Desk Washington, DC 20555
Subject:
Docket No.
50-482:
10 CFR 50.75 Report on Status of Decommissioning Funding Gentlemen:
Pursuant to 10 CFR 50.75, this letter and enclosures report the status of decommissioning funding for the Wolf Creek Generating Station (WCGS) located near Burlington, Kansas.
General Information Wolf Creek Nuclear Operating Corporation (WCNOC) is a jointly owned corporation formed by its owners: Kansas Gas and Electric Company (KGE), a wholly-owned subsidiary of Westar Energy, Inc., Kansas City Power & Light Company (KCPL), a wholly-owned subsidiary of Great Plains Energy Incorporated, and Kansas Electric Power Cooperative, Inc. (KEPCo).
WCNOC acts as an agent on behalf of Its owners to operate, maintain, repair, decontaminate, and decommission WCGS.
While WCNOC holds the operating license for WCGS, its formation has not changed the ownership or ultimate responsibility for the costs (including decommissioning) of WCGS.
Report Items shows the estimated decommissioning funds required pursuant to 10 CFR 50.75 (b) and (c). Enclosure 2 provides the total value of funds (including net earnings to date) accumulated in each owner's external trust fund as of December 31, 2002. Also reported on Exhibit 2 is a schedule of the annual amounts remaining to be collected and assumptions for rates of cost escalation and earnings on funds. A new site specific study was performed in 2002. It assumes demolition of all structures at the plant site. Approximately 91% of the study's total estimated costs are for work scopes considered in the minimum decommissioning cost formulas in 10 CFR 50.75 (b) and (c). The new study has been approved by the Missouri Public Service Commission (MPSC), and KCPL's rate collections allocable to Missouri are based on It. The Kansas Corporation Commission (KCC) is
-Ab P.O. Box 411 / Burlington, KS 66839/ Phone: (620) 364-8831 An Equal Opportunity Employer M/F/HC/VET
CT 03-0021 Page 2 of 2 considering the new study, but has not yet approved it. The owners' rate orders for collections in Kansas are still based on a 1999 site study for WCGS.
There have been no modifications to the method for providing financial assurance since the last submitted report. Each owner has an external trust fund that it maintains to provide for its share of WCGS decommissioning costs, and is making regular contributions from amounts collected in electric rates approved by their state commissions and the Federal Energy Regulatory Commission. Note that KGE recently sought and received approval from the KCC to add 20 years to its schedule of contributions. This is consistent with the time frame over which its investment in WCGS is being depreciated for rate purposes.
There have been no amendments or other material changes to any of the owners' trust agreements, nor are there any other contracts upon which they are relying pursuant to paragraph (e) (1) (v) of 10 CFR 50.75.
This letter contains no regulatory commitments.
If you have any questions, please call me at (620) 364-4004, or Karl (Tony) Harris at (620) 364-4038.
Sincerely, Mark S. Larson MSUrIr Enclosures cc:
J. N. Donohew (NRC), wle D. N. Graves (NRC), w/e E. W. Merschoff (NRC), w/e M.A. Dusaniwskyj (NRC), wle Senior Resident Inspector (NRC), w/e to CT 03-0021 Page 1 of I WOLF CREEK NUCLEAR OPERATING CORPORATION Minimum Decommissioning Funds Estimate pursuant to 10 CFR 50.75 (b) and (c)
MINIMUM ESTIMATE Table (c)(1) - Jan86 dollars in Millions
[Wolf Creek Is a PWR licensed for 3,565 MWt]
Escalation Factor (see calculation below) 105 3.427 360
=
Minimum estimate - DecO2 dollars in Millions Escalation oer Daraaraih (c)(2)
Escalation Factor = 0.65 Labor + 0.13 Energy + 0.22 Waste Burial Labor Energy Waste Burial TOTAL ESCALATION FACTOR Share 65%
13%
22%
4Q 02 1.840 1.140 9.467 Report 1.196 0.148 2.083 3.427 NOTE: 40 '02 factors per Thelen Reid & Priest LLP memo dated March 2003.
SITE SPECIFIC STUDY (August 2002)
Decommissioning Alternative DECON (2002 $s)
DECON Period Millions
% Total Preparation for Decommissioning Radioactive Systems/Structures and License Termination Subtotal - Applicable to NRC Minimum 88 338 426 19%
72%
91%
9%
100%
Other Systems/Structures and Site Restoration TOTAL COST ESTIMATE 42 468
- Enclosure 2 to CT 03-0021 Page 1 of 2 WOLF CREEK NUCLEAR OPERATING CORPORATION Decommissioning Funding Status Report as of December 31, 2002 (Dollars In Thousands)
TOTAL KGE KCPL KEPCo Market Value of External Sinking Fund as of 12/31/02
$ 131,556
$ 63,522
$ 63,283
$ 4,751 Schedule of Amounts to be Collected (as approved by rate-setting authorities based on Site Specific Study) 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 2036 2037 2038 2039 2040 7,749 7,754 7,759 8,111 8,116 8,122 8,291 8,297 8,303 8,492 8,498 8,504 8,715 8,721 8,728 8,962 8,969 8,975 9,238 9,245 9,252 9,544 9,066 4,046 4,046 4,046 4,046 4,046 4,046 4,046 4,046 4,046 4,046 4,046 4,046 4,046 4,046 4,046 3,846 3,846 3,846 4,046 4,046 4,046 4,046 4,046 4,046 4,046 4,046 4,046 4,046 4,046 4,046 4,046 4,046 4,046 4,046 4,046 4,046 4,046 4,046 4,046 4,046 4,046 4,046 4,046 4,046 4,046 4,046 4,046 4,046 4,046 4,046 4,046 4,046 4,046
$ 3,553 3,553 3,553 3,699 3,699 3,699 3,863 3,863 3,863 4,046 4,046 4,046 4,251 4,251 4,251 4,479 4,479 4,479 4,735 4,735 4,735 5,020 5,020 350 355 360 366 371 377 382 388 394 400 406 412 418 424 431 437 444 450 457 464 471 478 0
to CT 03-0021 Page 2 of 2 WOLF CREEK NUCLEAR OPERATING CORPORATION Decommissioning Funding Status Report as of December 31, 2002 (Dollars In Thousands) 2041 2042 2043 2044 2045 TOTAL 4,046 4,046 4,046 4,046 1,012 KGE KCPL KEPCo 4,046 4,046 4,046 4,046 1,012 AssumDtions re: Rates/Factors specific to Owner and Jurisdiction Cost Escalation Rate Kansas Missouri After Tax Earnings on Funds Kansas Missouri 3.60%
5.11%
3.60%
4.50%
6.93%
7.66%
3.60%
9.00%