ML030980540
| ML030980540 | |
| Person / Time | |
|---|---|
| Site: | Summer  |
| Issue date: | 03/31/2003 |
| From: | Chaplin M Santee Cooper |
| To: | Document Control Desk, Office of Nuclear Reactor Regulation |
| References | |
| Download: ML030980540 (5) | |
Text
PSantee Maxie C. Chaplin Senior Vice President O Coopers Generation One Riverwood Dnve Post Office Box 2946101 Moncks Corner, SC 29461-2901 (843) 7614093 March 31, 2003 Document Control Desk U. S. Nuclear Regulatory Commission Washington, D. C. 20555
Subject:
Virgil C. Summer Nuclear Station Docket No. 501395 Operating License No. NPF-12 Report of Status of Decommissioning Funding Gentlemen:
The South Carolina Public Service Authority (Authority) and South Carolina Electric & Gas Company (SCE&G) have ownership interests of one-third and two-thirds, respectively, in the Virgil C. Summer Nuclear Station (VCSNS). As provided in 10 CFR § 50.75 (f)(1), each power reactor licensee is required to report to the Nuclear Regulatory Commission (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. SCE&G has advised the Authority that it will disclose the required information relative to its two-thirds ownership share in a separate submittal.
The Authority's one-third share of the NRC formula minimum funding requirement is approximately $112 million in 2002 dollars. This liability is funded by payments to an external sinking fund as provided for in 10 CFR § 50.75. The escalated liability for these costs is expected to total $341 million, stated in dollars of the year of expenditure. Funding is made on a levelized basis over the plant's remaining operating license. The market value of the external fund was approximately $52 million as of December 31, 2002.
A site-specific decommissioning study completed in 2000 identified the Authority's share of decommissioning costs in excess of NRC formula minimum funding requirements in the approximate amount of $45 million in 2002 dollars.
The escalated liability for excess costs is expected to total approximately $213 million, stated in dollars of the year of expenditure. The market value of the internal fund was approximately $49 million as of December 31, 2002 and the book value was approximately $39 million.
-- If there are any questions concerning this report,-please contact me at (843) 761-4093. -
Sincerely, xie C. Chaplin Senior Vice President Generation MCC:ssf Attachment i.;
cc:
L. A. Reyes L. M. Padovan AdbI K. R. Cotton NRC Resident Inspector
.. A.C We're Putting Our Energy to Work for You.
t 1(a). The minimum decommissioning fund estimate, pursuant to 10 CFR § 50.75 (b) and (c).
$112.414.867 Base Amount for PWR between 1200 MWt and 3400 MWt Estimated Cost (Year X) = (1986 $ Base Cost) (ALx + BEx + CBx)
= ($100,520,000) {(.65 x 1.794) + (.13 x 1.143) + (.22 x 9.273)1
=
$337,244,600 Authority's one-third ownership share of 2000 Estimated Cost = $112,414,867 Where:
p
=
2,900 MWt A
=
.65 (NUREG 1307 Rev. 9)
B
=
.13 (NUREG 1307 Rev. 9)
C C
=
.22 (NUREG 1307 Rev. 9)
Lx
=
1.794 (Computed Below)
Ex
=
1.143 (Computed Below)
Px
=
1.222 (Computed Below)
Fx
=
1.033 (Computed Below)
Bx
=
9.273 (NUREG 1307 Rev. 10) 1986 $ Base Cost
=
($75,000,000 +.0088pmillion)
=
($75,000,000 + 25,520,000)
=
$100,520,000 Lx
=
(159.O)Base 1989 X (1-4 4l)ScalingFactor/ (1 2 7. 7)Base 1981
=
1.794 Px
=
12/02 Value / January 1986 Value
=
139.6/ 114.2
=
1.222 Fx
=
12/02 Value / January 1986 Value
=
84.7/82
=
1.033 Ex
=
{(.58Px) + (.42Fx)}
_=.(.58 xA.222) +_(.42 x.033) a
=
1.143 December 31, 2002 values in the following Bureau of Labor Statistics indices were used to compute NRC minimum requirements:
Employment Cost Index - South Region Series ID: ecul3202i Producer Price Index - Commodities Series ID: wpu0543 Producer Price Index - Commodities Series ID: wpu0573 1 of 3
r 1(b). Escalation of the Authority's one-third share of the minimum funding requirement through the end of decommissioning.
Cost categories Labor, Materials & Equipment, Burial, and Other were estimated in a site-specific decommissioning study. These costs were escalated through the end of the decommissioning period based on various indices and estimates.
Ultimate decommissioning costs to be funded from the external trust are estimated at $341,232,140 in escalated dollars.
- 2.
Market value of the external trust fund at December 31, 2002 for items
$ 52,085.186 included in 10 CFR § 50.75.
- 3.
Schedule of annual amounts remaining to be collected for items in 10 CFR § 50.75.
Beginning Year Balance - Book Annual Deposits Earnings Ending Balance Value 2003 44,721,209 4,899,000 2,468,611 52,088,820 2004 52,088,820 4,899,000 2,943,018 59,930,838 2005 59,930,838 4,899,000 3,535,919 68,365,757 2005 68,365,757 4,899,000 4,016,488 77,281,246 2007 77,281,246 4,899,000 4,540,273 86,720,519 2008 86,720,519 4,899,000 5,079,221 96,698,740 2009 96,698,740 4,899,000 5,618,197 107,215,937 2010 107,215,937 4,899,000 6,229,246 118,344,182 2011 118,344,182 4,899,000 6,863,963 130,107,145 2012 130,107,145 4,899,000 7,546,214 142,552,359 2013 142,552,359 4,899,000 8,225,271 155,676,631 2014 155,676,631 4,899,000 8,982,542 169,558,172 2015 169,558,172 4,899,000 9,715,683 184,172,855 2016 184,172,855 4,899,000 10,479,435 199,551,291 2017 199,551,291 4,899,000 11,374,424 215,824,714 2018 215,824,714 4,899,000 12,302,009 233,025,723 2019 233,025,723 4,899,000 13,282,466 251,207,189
_ i i
t 2020 251.207.1891 4,899,000 14,318,810 27U,4Z4,UUV 2021 270,424,999 4,899,000 15,414,225 290,738,224 2022 290,738,224 (18,403,234) 15,523,094 287,858,085 2023 287,858,085 (51,850,829) 13,452,414 249,459,669 2024 249,459,669 (64,163,366) 10,561,889 195,858,192 2025 195,858,192 (67,919,500) 7,292,505 135,231,198 2026 135,231,198 (70,634,723) 3,681,999 68,278,475 2027 68,278,475 (68,260,488) 1,025 19,011 2 of 3
- 4.
The assumptions used regarding escalation in decommissioning cost, rates of earnings on decommissioning funds, and rates of other factors used in funding projections follow:
The plant will be decommissioned immediately upon license expiration (DECON alternative).
Costs will escalate in accordance with the predicted behavior of applicable indices for labor (4%), material and equipment (approximately 2%), waste burial (8.4%) and other (approximately 3.3%).
Waste vendors will be utilized.
The trust fund will accrue earnings in accordance with predicted effective yield (approximately 5.5%).
All necessary funds will be on deposit at the timethe plant is shut down._
- 5.
Contracts upon which the licensee is relying pursuant to 10 CFR § 50.75 (e) (1) (v).
None.
- 6.
Modifications to the current funding assurance methods.
None.
- 7.
Material changes to Trust Agreements.
None.
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