ML050820246
| ML050820246 | |
| Person / Time | |
|---|---|
| Site: | Farley  |
| Issue date: | 03/07/2005 |
| From: | Derieux J Alabama Power Co |
| To: | Document Control Desk, Office of Nuclear Reactor Regulation |
| References | |
| Download: ML050820246 (6) | |
Text
J. Randy DeRieux 600 North 18th Street Assistant Treasurer and Post Office Box 2641 General Manager-Birmingham, Alabama 35291-0030 Corporate Finance and Planning Tel 205.257.2454 Fax 205.257.1023 March 7, 2005 ALABAMAa POWER A SOUTHERN COMPANY Docket Nos.: 50-348 50-364 U. S. Nuclear Regulatory Commission ATTN: Document Control Desk Washington, D.C. 20555 Joseph M. Farley Nuclear Plant Financial Assurance Requirements for Decommissioning Nuclear Power Reactors (10 CFR 50.75(f)(1))
Dear Ladies and Gentlemen:
Pursuant to 10 CFR 50.75(f)(1), each power reactor licensee is required to report to the NRC the status of its decommissioning funding for each reactor or part of each reactor it owns on a calendar year basis, beginning on March 31, 1999, and every two years thereafter. Alabama Power Company (APC) hereby submits the enclosed information in accordance with 10 CFR 50.75(f)(1) for operating licenses NPF-2 and NPF-8 issued for Joseph M. Farley Nuclear Plant Unit I and 2, respectively.
Southern Nuclear Operating Company, as the operating licensee and as an agent for the owner of Farley Nuclear Plant, is providing this information to the NRC on behalf of APC.
Based on the information presented herein, there is reasonable assurance that the funding necessary for decommissioning the Farley Nuclear Plant, consistent with the NRC prescribed minimum set forth in 10 CFR 50.75(c), will be available on the expiration date of the operating licenses NPF-2 and NPF-8.
Please advise if you have any questions or comments regarding the information provided herein.
Respectfully submitted, ALABAMA POWER COPANY b J. Randy DeRieux JRD Enclosure AJUJ
U. S. Nuclear Regulatory Commission Page 2 cc: Southern Nuclear Operating Company Mr. L. M. Stinson, Vice President - Plant Farley U. S. Nuclear Regulatory Commission Mr. S. E. Peters, Licensing Project Manager - Farley Dr. W. D. Travers, Regional Administrator Mr. C. A. Patterson, Senior Resident Inspector - Farley
Enclosure Alabama Power Company Ownership Percentage - 100%
10 CFR 50.75(f)(1) Requirement Unit 1 Unit 2 1
The NRC minimum decommissioning estimate,
$ 342,332,000 2
$ 342,332,000 2 pursuant to 10 CFR 50.75(b) and (c). 1 2
The amount accumulated at the end of the
$ 227,337,204
$ 218,296,317 calendar year preceding the date of the report for items included in 10 CFR 50.75(b) and (c).
3 A schedule of the annual amounts remaining to be See Schedule in See Schedule in collected; for items in 10 CFR 50.75(b) and (c).
4 The assumptions used regarding:
(a) rates of escalation in decommissioning 4.5%
4.5%
costs; (b) rates of earnings on decommissioning 7%
7%
funds; (c) real rate of return; and 2.5%
2.5%
(d) rates of other factors used in funding N/A N/A projections.
5 Any contracts upon which the licensee is relying N/A N/A pursuant to 10 CFR 50.75(e)(1)(v).
6 Any modifications to a licensee's current method No Modifications of providing financial assurance occurring since External Sinking Fund the last submitted report.
"Cost of Service' Rate Making 7
Any material changes to trust agreements.
See Attachment 3 NOTES:
1 The NRC formulas in section 10 CFR 50.75(c) include 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. The costs of managing and storing spent fuel on-site until transfer to DOE are not included in the cost formulas.
2 This number is based on NUREG-1 307, Rev. 10, for the burial factor (Option 2) and the December 2003 values for labor and energy factors.
Attachment I Schedule of the Annual Amounts Remaining to be Collected Alabama Power Company Farley Nuclear Plant Unit 1 Beginning Fund Year Balance Fund Eaminas Fund Contributions Ending Fund Balance Minimum' Decommissioning Fund Estimate 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 227,337,204 253,520,515 281,536,658 311,513,931 343,589,614 377,910,594 404,364,335 432,669,839 462,956,727 495,363,698 530,039,157 567,141,898 606,841,831 15,913,604 17,746,436 19,707,566 21,805,975 24,051,273 26,453,742 28,305,503 30,286,889 32,406,971 34,675,459 37,102,741 39,699,933 42,478,928 10,269,707 10,269,707 10,269,707 10,269,707 10,269,707 0
0 0
0 0
0 0
0 227,337,204 253,520,515 281,536,658 311,513,931 343,589,614 377,910,594 404,364,335 432,669,839 462,956,727 495,363,698 530,039,157 567,141,898 606,841,831 649,320,759 342,332,000 357,736,940 373,835,102 390,657,682 408,237,278 426,607,955 445,805,313 465,866,552 486,830,547 508,737,922 531,631,128 555,554,529 580,554,483 606,679,434 633,980,009 Schedule of the Annual Amounts Remaining to be Collected Alabama Power Company Farley Nuclear Plant Unit 2 Beginning Fund Balance Fund Earnings Fund Contributions Ending Fund Balance Minimum Decommissioning Fund Estimate Year 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 218,296,317 243,592,257 270,658,913 299,620,235 320,593,652 343,035,207 367,047,672 392,741,009 420,232,879 449,649,181 481,124,624 514,803,347 550,839,581 589,398,352 630,656,237 674,802,173 722,038,326 15,280,742 17,051,458 18,946,124 20,973,416 22,441,556 24,012,465 25,693,337 27,491,871 29,416,302 31,475,443 33,678,724 36,036,234 38,558,771 41,257,885 44,145,937 47,236,152 50,542,683 10,015,198 10,015,198 10,015,198 0
0 0
0 0
0 0
0 0
0 0
0 0
0 218,296,317 243,592,257 270,658,913 299,620,235 320,593,652 343,035,207 367,047,672 392,741,009 420,232,879 449,649,181 481,124,624 514,803,347 550,839,581 589,398,352 630,656,237 674,802,173 722,038,326 772,581,008 342,332,000 357,736,940 373,835,102 390,657,682 408,237,278 426,607,955 445,805,313 465,866,552 486,830,547 508,737,922 531,631,128 555,554,529 580,554,483 606,679,434 633,980,009 662,509,109 692,322,019 723,476,510 756,032,953 Material Changes to Trust Agreement Executed Nonqualified Master Nuclear Decommissioning Trust Agreement with First Alabama Bank, Mobile June 1991 February 1994 February 1994 February 1994 December 1995 November 1996 March 1999 July 1999 July 1999 August 1999 Executed Investment Management Agreement with W.H. Reaves & Co. for the Nonqualified Master Nuclear Decommissioning Trust Executed Investment Management Agreement with ANB Investment Management and Trust Company for the Nonqualified Master Nuclear Decommissioning Trust Executed Investment Management Agreements with Loomis, Sayles & Company for the Nonqualified Master Nuclear Decommissioning Trust and the Qualified Master Nuclear Decommissioning Trust Executed Investment Management Agreement with Flaherty & Crumrine, Inc. for the Nonqualified Master Nuclear Decommissioning Trust Named Mellon Bank, N.A. successor trustee for the Nonqualified Master Nuclear Decommissioning Trust and the Qualified Master Nuclear Decommissioning Trust Established Trust Owned Life Insurance with Allmerica Financial Life and Annuity Company indirectly through Vinings Management for the Nonqualified Master Nuclear Decommissioning Trust Executed Investment Management Agreement with Northern Trust Company for the Qualified Master Nuclear Decommissioning Trust Executed Investment Management Agreement with Rhumbline Advisers for the Qualified Master Nuclear Decommissioning Trust Executed Investment Management Agreement with Barrow, Hanley, Mewhinney &
Strauss, Inc. for the Qualified Master Nuclear Decommissioning Trust July 2000 Executed Investment Management Agreement with Castleark Management L.L.C. for the Qualified Master Nuclear Decommissioning Trust September 2002 March 2003 October 2004 Executed Investment Management Agreement with AmSouth Bank for the Qualified and Nonqualified Master Nuclear Decommissioning Trust Executed Trust Owned Life Insurance with Prudential for the Nonqualified Master Nuclear Decommissioning Trust replacing Allmerica Executed Investment Management Agreement with Flaherty and Crumrine, Inc. for the Qualified Master Nuclear Decommissioning Trust