ML050890310
| ML050890310 | |
| Person / Time | |
|---|---|
| Site: | Davis Besse  |
| Issue date: | 03/24/2005 |
| From: | Marsh R FirstEnergy Corp |
| To: | Document Control Desk, Office of Nuclear Reactor Regulation |
| References | |
| Download: ML050890310 (12) | |
Text
FirstEnergy 76 South Main Street Akron. Ohio 44308 Richard H. Marsh, CFA 330-384-5318 Senior Vice President and Fax: 384-5669 Chief Financial Officer March 24, 2005 CERTIFIED MAIL Return Receipt Requested Serial Number: 3139 (Davis Besse)
United States Nuclear Regulatory Commission Document Control Desk Washington, D.C. 20555-0001 Davis Besse Power Station, Unit I Docket No. 50-346 RE: Decommissioning Reports for the Davis-Besse Nuclear Power Station, Unit I Ladies and Gentlemen:
Pursuant to 10 CFR 50.75(f)(1), FirstEnergy Corp. is hereby submitting the Decommissioning Reports for the Davis-Besse Nuclear Power Station, Unit I for the year ending December 31, 2004.
If you have questions or require additional information, please contact Mr. R. Terry Conlin, Staff Analyst at 330-3844605.
Very truly yours, Attachments
NRC Decommissioning Funding Status Report Davis-Besse Nuclear Power Station, Unit 1 As of December 31, 2004 (Note:
This report reflects FirstEnergy Corp.'s consolidated share of ownership interest in Davis-Besse Nuclear Power Station, Unit 1).
- 1. The minimum decommissioning fund estimate, pursuant to 10 CFR 50.75(b) and (c) (see Schedule 1):
Cleveland Electric Illuminating Company
$182,263,233 Toledo Edison Company 172,472.526 FirstEnergy Consolidated
$354,735,758
- 2. The amount accumulated in external trust funds at December 31, 2003:
Cleveland Electric Illuminating Company
$178,559,866 Toledo Edison Company 169.787,287 FirstEnergy Consolidated
$348,347,153
- 3. A schedule of the annual amounts over the number of years remaining to be collected from ratepayers is attached as Schedule 2.
- 4. The assumptions used regarding escalation in decommissioning cost, rates of earnings on decommissioning funds, and rates of other factors used in funding projections:
Consolidated Ownership Interest in Unit 100%
"Real" Rate of Return through Dismantlement 2.00%
Year of Final Dismantlement 2024 Year of License Termination 2017
- 5. There are no contracts upon which the owners/licensees are relying pursuant to 10 CFR 50.75(e)(1)(v).
- 6. Due to the passage of the Ohio Electric Utility Industry Restructuring Bill, Cleveland Electric Illuminating Company and Toledo Edison Company, have accelerated the timing of the contributions to the external trust. The contributions pertaining to Public Utility Commission of Ohio will be collected from ratepayers through 2005 while Toledo Edison contributions pertaining to FERC will be collected througfi 2017.
- 7. The Trust Agreements for the above-mentioned owners of the Davis Besse Nuclear Power Station were amended effective December 9, 2003 in order to incorporate the "Notice Regarding Disbursements or Payments" as required by the NRC (see Schedule 3).
Schedule I Page 1 of 2 CLEVELAND ELECTRIC ILLUMINATING COMPANY Calculation of Minimum Financial Assurance Amount for December 2004 DAVIS-BESSE NUCLEAR POWER STATION, UNIT 1 Ohio Regions Labor (L) = Midwest Energy (E) = National Waste Burial (B) = South Carolina Adjustment Factor 2.000 1.434 9.467 L =
E=
B =
Ratio 0.65 0.13 0.22 Escalation Factor 1.3 0.186 2.083 3.569
$99.393.600 PWR Escalation Factor =
Base Amount for PWR between 1200 MWt and 3400 MWt = ($75m + 0.0088P)
(P = power level in megawatts thermal = 2,772)
($75 + 0.0088(2,772)) million =
Escalated Amount for unit = 99,393,600 3.569 Escalated Amount for Cleveland Electric Illuminating Company's ownership interest (51.38 %) in the unit:
$354,735,758 x
51.38%
=
$182,263,233 for De
$354,735,758 ecember 2004
Schedule 1 Page 2 of 2 TOLEDO EDISON COMPANY Calculation of Minimum Financial Assurance Amount for December 2004 DAVIS-BESSE NUCLEAR POWER STATION, UNIT 1 Ohio Regions Labor (L) = Midwest Energy (E) = National Waste Burial (B) = South Carolina For PWR Unit Adjustment Escalation Factor Ratio Factor L =
2.000 0.65 1.3 E =
1.434 0.13 0.186 B =
9.467 0.22 2.083 PWR Escalation Factor =
3.569 Base Amount for PWR between 1200 MWt and 3400 MWt = ($75m + 0.0088P)
(P = power level in megawatts thermal = 2,772)
($75 + 0.0088(2,772)) million =
$99,393,600 Escalated Amount for unit = 99,393,600 x 3.569
$354,735,758 Escalated Amount for Toledo Edison Company's ownership interest (48.62 %) in the unit:
5354,735,758 x
48.62%
$172,472,526 for December 2004
Schedule 2 Page 1 of 1 NRC Decommissioning Funding Status Report Schedule of Annual Amounts Remaining to be Collected Davis Besse Annual Amounts Collected Year 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 Cleveland Electric 14,992,124 Toledo Edison 13,979,1 90 294,731 294,731 294,731 294,731 294,731 294,731 294,731 294,731 294,731
- 294,731 294,731 98,244 FirstEnergy Consolidated 28,971,314 294,731 294,731 294,731 294,731 294,731 294,731 294,731 294,731 294,731 294,731 294,731 98,244 Total 14,992,124 17,319,475 32,311,599 Total 14,992,124 17,319,475 32,311,599
fi -
AMENDMENT NUMBER TWO TO TIlE FIRST AMENDED AND RESTATED MASTER DECOMMISSIONING TRUST AGREEMENT Dated as of December 16, 1999 between THE CLEVELAND ELECTRIC ILLUM[INATING COMPANY (Davis-Besse, Perry and Beaver Valley) and MELLON BANK, N.A.
As Trustee This Amendment Number Two to the First Amended and Restated Master Decommissioning Trust Agreement dated as of December 16, 1999 for The Cleveland Electric Illuminating Company (Davis-Besse, Perry and Beaver Valley) (the "Agreement") by and between, The Cleveland Electric Illuminating Company, (the "Company") and Mellon Bank, N.A. (the 'Trustee"), made this 9th day of December, 2003.
WNITNESSETH:
WHEREAS, the Company entered into the Agreement to provide for the decommissioning of the Davis-Besse Power Station Unit No. 1, Beaver Valley Power Station Unit 2 and Perry Power Station Unit No. 1; and WHEREAS, Section 11.1 of the Agreement allows the Trustee and the Company to amend the Agreement; NOW THEREFORE, the Trustee and the Company hereby amend the Agreement as follows:
- 1. The following Section 2.5 shall be added:
Notice Regarding Disbursements or Payments. Notwithstanding anything to the contrary in this Agreement, except for (i) payments of ordinary administrative costs (including taxes) and other incidental expenses of the Trust Fund (including legal, accounting, actuarial, trustee, and other incidental expenses) in connection with the operation of the Trust Fund, (ii) withdrawals being made under 10 CFR 50.82(a)(8), and (iii) transfers between Qualified and Nonqualified Funds in accordance with the provisions of this Agreement, no disbursement or payment may be made from the Trust Fund until written notice of the intention to make a disbursement or payment has been given to the Director, Office of Nuclear Reactor Regulation, or the Director, Office of Nuclear Material Safety and Safeguards, as applicable, at least 30 working days before the date of the intended disbursement or payment. The disbursement or payment from the Trust Fund, if it is otherwise in compliance with the terms and conditions of this Agreement, may
be made following the 30-working day notice period if no written notice of objection from the Director, Office of Nuclear Reactor Regulation, or the Director, Office of Nuclear Material Safety and Safeguards, as applicable, is received by the Trustee or the Company within the notice period. The required notice may be made by the Trustee or on the Trustee's behalf. This Section 2.5 is intended to qualify each and every provision of this Trust Agreement allowing distributions from the Trust Fund, and in the event of any conflict between any such provision and this Section, this Section shall control.
- 2. Section 6.3 shall be restated as follows:
To the extent the Trustee advances funds to the Trust Fund for disbursements or to effect the settlement of purchase transactions, the Trustee shall be entitled to collect from the Trust Fund reasonable charges established under the Trustee's standard overdraft terms, conditions and procedures.
- 3. The Company and the Trustee hereby each represent and warrant to the other that it has full authority to enter into this Amendment upon the terms and conditions hereof and that the individual executing this Amendment on its behalf has the requisite authority to bind the Company and the Trustee to this Amendment.
IN WITNESS WHEREOF, the parties hereto, each intending to be legally bound hereby, have hereunto set their hands and seals as of the day and year first above written.
The Cleveland Electric Illuminating Company By::___
Name: Donald C. Perrine
Title:
Director, Investment Management MELLON N.A.
By:
tLA 4C Name:
_I04J I YL'.
AJ
Title:
/
V,,C.7 &s/.y)§f/7'.
FIRST AMENDMENT TO DECOMMISSIONING TRUST AGREEMENT dated as of December 16, 1996 between THE TOLEDO EDISON COMPANY (Davis-Besse and Perry) and Mellon Bank, N.A.
THIS AMENDMENT, entered into on this 9th day of December, 2003, by and between THE TOLEDO EDISON COMPANY, an Ohio corporation (hereinafter referred to as the "Company"), and MELON BANK, N.A. (hereinafter referred to as the "Trustee"),
WITNESSETH WHEREAS, the Company and the Trustee entered into a certain Decommissioning Trust Agreement, as of December 16, 1996 ("the Agreement");
WHEREAS, Section 11.1 of the Agreement provides that the Agreement may be amended at any time.
NOW, THEREFORE, the Company and the Trustee agree and mutually consent to amend the Agreement in the following respects:
- 1. The following Section 2.5 shall be added:
Notice Regarding Disbursements or Payments. Notwithstanding anything to the contrary in this Agreement, except for (i) payments of ordinary administrative costs (including taxes) and other incidental expenses of the Trust Fund (including legal, accounting, actuarial, trustee, and other incidental expenses in connection with the operation of the Trust Fund, (ii) withdrawals being made under 10 CFR 50.82(a)(8), and (iii) transfers between Qualified and Nonqualified Funds in accordance with the provisions of this Agreement, no disbursement or payment may be made from the Trust Fund until written notice of the intention to make a disbursement or payment has been given to the Director, Office of Nuclear Reactor Regulation, or the Director, Office of Nuclear Material Safety and Safeguards, as applicable, at least 30 working days before the date of the intended disbursement or payment. The disbursement or payment from the Trust Fund, if it is otherwise in compliance with the
terms and conditions of this Agreement, may be made following the 30-working day notice period if no written notice of objection from the Director, Office of Nuclear Reactor Regulation, or the Director, Office of Nuclear Material Safety and Safeguards, as applicable, is received by the Trustee or the Company within the notice period. The required notice may be made by the Trustee or on the Trustee's behalf. This Section 2.5 is intended to qualify each and every provision of this Trust Agreement allowing distributions from the Trust Fund, and in the event of any conflict between any such provision and this Section, this Section shall control.
- 2. The following shall be added to Section 6.2 (xi)
The Trustee shall not be responsible for any losses resulting from the deposit or maintenance of securities or other property (in accordance with market practice, custom, or regulation) with any recognized foreign clearing facility, book-entry system, centralized custodial depository, or similar organization.
- 3. Section 6.3. shall be restated as follows:
To the extent the Trustee advances funds to the Trust Fund for disbursements or to effect the settlement of purchase transactions, the Trustee shall be entitled to collect from the Trust Fund reasonable charges established under the Trustee's standard overdraft terms, conditions and procedures.
- 4. The following Section 6.6 shall be added:
The Trustee shall not be responsible or liable for any losses or damages suffered by the Trust Fund arising as a result of the insolvency of any custodian, subtrustee or subcustodian, except to the extent the Trustee was negligent in its selection or continued retention of such entity. Settlements of transactions may be effected in trading and processing practices customary in the jurisdiction or market where the transaction occurs. The Company acknowledges that this may, in certain circumstances, require the delivery of cash or securities (or other property) without the concurrent receipt of securities (or other property) or cash and, in such circumstances, the Company shall have sole responsibility for nonreceipt of payment (or late payment) by the counterparty.
- 5. All other terms and conditions of the Agreement shall remain in full force and effect.
Each of the parties represents and warrants to the other parties that it has full authority to enter into this Amendment upon the terms and conditions hereof and that the individual executing this Amendment on its behalf has the requisite authority to bind the respective parties to this Amendment.
IN WITNESS WHEREOF, the parties hereto, each intending to be legally bound hereby, have hereunto set their hands and seals as of the day and year first above written.
THE TOLEDO EDISON COMPANY By:
Name: Donald C. Perrine
Title:
Director, Investment Management MELLON BANK, N.A.
By to
/.kGw29 Name:
i
Title:
-- 7/,4 Of 4,lct1Jp-l First Energy Centerion Toledo Edison
AMENDMENT NO. 3 TO THE DECOMMISSIONING TRUST AGREEMENT between THE TOLEDO EDISON COMPANY and AMERITRUST COMPANY NATIONAL ASOCIATION This amendment is entered into as of the 9th day of December, 2003, by and between The Toledo Edison Company (the "Company"), and Mellon Bank, N.A..
WHEREAS, by Amendment dated December 20, 1999 the Company appointed Mellon Bank, N.A. as successor Trustee, and Mellon Bank, N.A. agreed to act as successor Trustee subject to the terms of the Decommissioning Trust Agreement between The Toledo Edison Company and Ameritrust Company National Association ("the Agreement").
WHEREAS, in Section 10.1 of the Agreement, the parties specifically reserve the right to to amend the Agreement; and WHEREAS, the parties wish to amend the Agreement.
NOW, THEREFORE, the parties agree as follows:
- 1. The following Section 2.6 shall be added:
Notice Regarding Disbursements or Payments. Notwithstanding anything to the contrary in this Agreement, except for (i) payments of ordinary administrative costs (including taxes) and other incidental expenses of the Trust Fund (including legal, accounting, actuarial, trustee expenses, and other incidental expenses) in connection with the operation of the Trust Fund, (ii) withdrawals being made under 10 CFR 50.82(a)(8), and (iii) transfers between Qualified and Nonqualified Funds in accordance with the provisions of this Agreement, no disbursement or payment may be made from the Trust Fund until written notice of the intention to make a disbursement or payment has been given to the Director, Office of Nuclear Reactor Regulation, or the Director, Office of Nuclear Material Safety and Safeguards, as applicable, at least 30 working days before the date of the intended disbursement or payment. The disbursement or payment from the Trust Fund, if it is otherwise in compliance with the terms and conditions of this Agreement, may be made following the 30-working day notice period if no written notice of objection from the Director, Office of Nuclear Reactor Regulation, or the Director, Office of Nuclear Material Safety and Safeguards, as applicable, is received by the Trustee or the Company within the notice period. The required notice may be made by the Trustee or on the Trustee's behalf. This Section 2.6 is intended to qualify each and every provision of this Trust Agreement allowing
distributions from the Trust Fund, and in the event of any conflict between any such provision and this Section, this Section shall control.
- 2. The following Section 5.5 shall be added:
The Trustee may lend the assets of the Trust Fund in accordance with the terms and conditions of a separate securities lending agreement.
- 3. The last sentence of Section 6.3 shall be restated as follows:
To the extent the Trustee advances funds to the Trust Fund for disbursements or to effect the settlement of purchase transactions, the Trustee shall be entitled to collect from the Trust Fund reasonable charges established under the Trustee's standard overdraft terms, conditions and procedures.
- 4. Each Party hereby represents and warrants to the others that it has full authority to enter into this Agreement upon the terms and conditions hereof and that the individual executing this Agreement on its behalf has the requisite authority to bind that Party.
IN WITNESS WHEREOF, the Parties have each set their Hands and Seals to this Amendment to the Agreement as of the date and year first written above.
THE TOLEDO N COMPANY By:
L w
Name: Donald C. Perrine
Title:
Director, Investment Management MELLON NA By: ltL cr2'i 7 <'-2 aJ. '
Name-,esm4, \\ICAU
Title:
I//c.e °/eer rs First Energy Toledo Edison 2