ML050910191
| ML050910191 | |
| Person / Time | |
|---|---|
| Site: | Summer  |
| Issue date: | 03/31/2005 |
| From: | Chaplin M Santee Cooper |
| To: | Document Control Desk, Office of Nuclear Reactor Regulation |
| References | |
| Download: ML050910191 (4) | |
Text
<!'Santee
- oCooper, Maxie C. Chaplin Senior Vice President Generation One Rivernood Drive Post Office Box 2946101 Moncks Comer, SC 29461-2901 March TPi37Y 093 Document Control Desk U. S. Nuclear Regulatory Commission Washington, D. C. 20555
Subject:
Virgil C. Summer Nuclear Station Docket No. 50/395 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, 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 SI 17 million in 2004 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 $801 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 $64 million as of December 31, 2004.
A site-specific decommissioning study completed in 2000 identified the Authority's share of decommissioning costs which are in excess of NRC formula minimum funding requirements. This excess amount is estimated by the Authority to be approximately $61 million in 2004 dollars. The escalated liability for excess costs is expected to total approximately $701 million, stated in dollars of the year of expenditure.
The market value of the internal fund was approximately $52 million as of December 31, 2004 and the book value was approximately $45 million.
If there are any questions concerning this report, please contact me at (843) 761-4093.
Sincerely, nfelc Senior Vice Generation MCC:trw Attachment cc:
W. D. Travers i -
K. R. Cotton NRC Resident Inspector oc) (
We're Putting Our Energy to Work for You.
Attachment I I(a). The minimum decommissioning fund estimate, pursuant to 10 CFR § 50.75 (b) and (c).
Sl,2268 Base Amount for PWR between 1200 MWt and 3400 MWt Estimated Cost (Year X) = (1986 $ Base Cost) (AL, + BE. + CBj)
= ($100,520,000) ((.65 x 1.925) + (.13 x 1.434) + (.22 x 9.273))
=
$349,508,040 Authority's one-third ownership share of 2000 Estimated Cost= $116,502,680 Where:
p A
B C
Lx E.
Px F.
B,,
=
2,900 MWt
=
.65 (NUREG 1307 Rev. 10)
=
.13 (NUREG 1307 Rev. 10)
=
.22 (NUREG 1307 Rev. 10)
=
1.925 (Computed Below)
=
1.434 (Computed Below)
=
1.295 (Computed Below)
=
1.627 (Computed Below)
=
9.273 (NUREG 1307 Rev. 10) 1986 $ Base Cost
=
($75,000,000 +.0088pmillion)
=
($75,000,000 + 25,520,000)
=
$100,520,000 LxA
=
(I70.6)Basc 1989 X (0. 44l)S!hgF.ctor/ (I2 7.7 )BaSe 1981
=
1.925 P',
=
12/04 Value / January 1986 Value
=
147.9/ 114.2
=
1.295 F.
=
12/04 Value / January 1986 Value
=
133.4/82
=
1.627 E.
=
{(.58PX) + (.42FO)}
=
((.58 x 1.295) + (.42 x 1.627))
=
1.434 December 31, 2004 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
Attachment I l(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 $800,993,967 in escalated dollars.
- 2.
Market value of the external trust fund at December 31, 2004 for items included in 10 CFR § 50.75.
- 3.
Schedule of annual amounts remaining to be collected for items in 10 CFR § 50.75.
$ 64,24,010 Beginning Year Balance - Book Annual Deposits Earnings Ending Balance Value 2005 57,715,237 1,271,028 3,618,745 62,605,010 2006 62,605,010 1,271,028 3,912,813 67,788,852 2007 67,788,852 1.271,028 4,202,909 73,262,788 2008 73,262,788 1,271,028 4,483,683 79,017,499 2009 79,017,499 1.271,028 4,820,067 85,108,594 2010 85108594 1.271,028 5,183,113 91,562,736 2011 91,562,736 1.271,028 5,567,014 98,400,778 2012 98,400,778 1,271,028 5,943,407 105,615,213 2013 105,615,213 1,271,028 6,379,159 113.265,400 2014 113,265,400 1,271,028 6,784,597 121,321,025 2015 121,321,025 1,271,028 7,254,997 129,847,051 2016 129,847,051 1.271,028 7
8777838 138,895,917 2017 138,895,917 1,271,028 8,305.976 148,472,921 2018 148,472,921 1,271,028 8,997,459 158,741,408 2019 158,741,408 1,271,028 9,667,352 169,679,788 2020 169,679.788 1,271,028 10,333,499 181,284,315 2021 181,284,315 1,271,028 11,058,343 193,613,686 2022 193,613,686 1,271,028 11,810,435 206,695,149 2023 206,695,149 1,271,028 12,608,404 220,574,581 2024 220,574,581 1,271,028 13,455,049 235,300,658 2025 235,300,658 1,271,028 14,353,340 250,925,026 2026 250,925,026 1,271,028 15,306,427 267,502,481 2027 267,502,481 1,271,028 16,317,651 285,091,160 2028 285,091,160 1,271,028 17,390,561 303,752,749 2029 303,752,749 1,271,028 18,528,918 323,552,695 2030 323,552,695 1,271,028 19,736,714 344,560,437 2031 344,560,437 1,271,028 21,018,187 366,849,652 2032 366,849,652 1,271,028 22.377,829 390,498,509 2033 390,498,509 1,271,028 23,820,409 415,589,946 2034 415,589,946 1,271,028 25,350,987 442,211,961 2035 442,211,961 1,271,028 26,974,930 470,457,918 2036 470,457,918 1,271,028 28,697,933 500,426,879 2037 500,426,879 1,271,028 30,526.040 532,223,947 2038 532,223,947 1,271,028 32,465.661 565,960,635
I..
.s Attachment I 2039 565,960,635 1,271,028 34,523.599 601,755,262 2040 601,755,262 1,271,028 36,707,071 639,733,361 2041 639,733,361 1,271,028 39,023,735 680,028,124 2042 680,028,124 (38,742,175) 39,118,443 680,404,393 2043 680,404,393 (109,831,233) 34,804,963 605,378,122 2044 605,378,122 (176,602,478) 26,155,314 454,930,959 2045 454,930,959 (191,544,005) 16,066,604 279,453,558 2046 279,453,558 (200,420,547) 4,821.014 83,854,025 2047 83,854,025 (83,853,529) 30 526
- 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 (7.5%) and other (approximately 3.3%).
Waste vendors will be utilized.
The trust fund will accrue earnings in accordance with predicted effective yield (approximately 6.1%).
All necessary funds will be on deposit at the time the 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.