ML040970493

Decommissioning Funding Status Report

ML040970493
Person / Time
Site:	Kewaunee
Issue date:	03/31/2004
From:	Coutu T Nuclear Management Co
To:	Document Control Desk, Office of Nuclear Reactor Regulation
References
NRC-04-042
Download: ML040970493 (5)

Text

Commitedto Na Kewaunee Nuclear Power Plant Operated by Nuclear Management Company, LLC March 31, 2004 NRC-04-042 10 CFR 50.75(f)(1)

U.S. Nuclear Regulatory Commission ATTN: Document Control Desk Washington, DC 20555 KEWAUNEE NUCLEAR POWER PLANT DOCKET 50-305 LICENSE No. DPR-43 Decommissioning Funding Status Report The enclosed decommissioning funding status report is being submitted in accordance with 10 CFR 50.75(f)(1), "Reporting and Recordkeeping for Decommissioning Planning," for the Kewaunee Nuclear Power Plant (KNPP). As holder of the plant operating license, Nuclear Management Company, LLC is submitting this report on behalf of the plant co-owners identified in the enclosure.

The financial information presented herein, current as of December 31, 2003, reflects information provided to the Nuclear Management Company, LLC by the plant co-owners.

In item one of the report, 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 licensee 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.

NMC had previously provided this information by letter dated March 31, 2003, in accordance with 10CFR50.75(f)(1) which states, "each power reactor licensee shall report, on a calendar-year basis, to the NRC by March 31, 1999, and at least once every 2 years thereafter on the status of its decommissioning funding for each reactor or part of a reactor that it owns."

N490 Highway 42

• Kewaunee, Wisconsin 54216-9511 A C)C)DLI Telephone: 920.388.2560

a Docket 50-305 NRC-04-042 March 31, 2004 Page 2 10 CFR50.75(f)(1) additionally states that any licensee for a plant that is within 5 years of the projected end of its operation, or where conditions have changed such that it will close within 5 years (before the end of its licensed life), or has already closed (before the end of its licensed life), or for plants involved in mergers or acquisitions shall submit this report annually. As Dominion Kewaunee Resources Inc. is currently involved with the KNPP in an acquisition; this decommissioning funding status report is hereby submitted as required annually.

This document contains no new commitments and no revisions to existing commitments.

I declare under penalty of perjury that the foregoing is true and accurate.

Executed on March 31, 2004.

Thomas Coutu Site Vice President Kewaunee Nuclear Power Plant Nuclear Management Company, LLC Enclosure cc: Administrator, Region Ill, USNRC Project Manager, Kewaunee, USNRC Senior Resident Inspector, Kewaunee, USNRC Public Service Commission of Wisconsin

Enclosure 1 NUCLEAR MANAGEMENT COMPANY, LLC KEWAUNEE NUCLEAR PLANT DOCKET 50-305 March 31, 2004 Letter from Thomas Coutu (NMC)

To Document Control Desk (NRC)

DECOMMISSIONING FUNDING STATUS REPORT Kewaunee Nuclear Power Plant Two pages follow

I Wisconsin Public Service Corporation and 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 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 l $317,074,807 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.

Plant Owners Ownership % External Fund Wisconsin Public Service Corporation (WPSC) 59.0% $354,732,173 Wisconsin Power & Light Company (WP&L) l 41.0% $244,107,251 Total Pre-Tax $598,839,424

3. A schedule of the annual amounts remaining to be collected.

Plant Owners Annual Annuity Years to Collect Wisconsin Public Service Corporation (WPSC) $0 (See Note) 9 years Wisconsin Power & Light Company (WP&L) $2,876,000 9 years Total $2,876,000 9 years Note: Due to the pending sale of the KNPP to Dominion, funding into the trusts has been discontinued.

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 the Public Service Commission of Wisconsin:

l Labor

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

l

_3.81%

Burial WPSC

_9.16%

I l

Energy 2.82%

4.95%

I l

Other 8.00%

]

WP&L 6.04%

5. Any contracts upon which the licensee is relying pursuant to 10 CFR 50.75 (e) (1) (v). NONE There are no current contracts being relied upon pursuant to 10 CFR 50.75 (e) (1) (v) to decommission KNPP.

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Wisconsin Public Service Corporation and Wisconsin Power & Light Company Kewaunee Nuclear Power Plant Docket No. 50-305 License No. DPR-4 Decommissioning Funding Status Report

6. Any modifications to a licensee's method of providing financial assurance occurring since the last submitted report. NONE 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. YES Amendments have been made to the NDT Trust Agreements in December 2003 to comply with the NRC Final Rule regarding nuclear decommissioning trust provisions, that was effective December 24, 2003.

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