ML051030171
| ML051030171 | |
| Person / Time | |
|---|---|
| Site: | Susquehanna  |
| Issue date: | 03/31/2005 |
| From: | Kammeier K Allegheny Electric Cooperative |
| To: | Document Control Desk, Office of Nuclear Reactor Regulation |
| References | |
| Download: ML051030171 (6) | |
Text
ELECTRIC COOPERATIVE, INC.
A Touchstone Energy' Partner (
212 LOCUST ST.
- P.O. BOX 1266
- HARRISBURG, PENNSYLVANIA 17108-1266
- PHONE 717/233-5704 March 31, 2005 U.S. Nuclear Regulatory Commission Attn: Document Control Desk Mail Station OP1-17 Washington, DC 20555 SUSQUEHIANNA STEAM ELECTRIC STATION DECOMMISSIONING REPORT OF FINANCIAL ASSURANCE Docket Nos. 50-387 and 50-388 In accordance with 10 CFR 50.75(f)(1), Allegheny Electric Cooperative, Inc. hereby submits its decommissioning report of financial assurance for our 10 percent interest in Susquehanna Units 1 and 2.
If you have any questions regarding the report, please contact me at 717-920-1111.
Sincerely, Kenneth W. Kammeier
Enclosure:
Decommissioning Report cc:
NRC Region I Mr. D. J. Allard, PA DEP Mr. R. V. Guzman, NRC Project Manager Mr. S. Hansell, NRC Sr. Resident Inspector Mr. M. Dusaniwskyj, NRC - OWF A-0o(
0 PEOPLE YOU CAN COUNT ON.
NRC Decommissioning Funding Status Report December 31, 2004 (Allegheny Electric Cooperative, Inc.)
Susquehanna Steam Electric Station Allegheny Electric Cooperative, Inc. (AEC) hereby submits this decommissioning report in compliance with 10 CFR 50.75(f)(1) for its 10 percent share of Susquehanna Units I and 2 located in Berwick, Pennsylvania.
AEC has analyzed its current funding levels and planned contributions for both its share of decommissioning Units 1 and 2. AEC has concluded that these funding levels and planned contributions will be sufficient to pay for its share of the decommissioning costs of each unit at the time permanent termination of operations is expected for each unit, when taking into account trust fund earnings and decommissioning cost inflation.
Information is submitted to provide Financial Assurance Unit I Unit 2
- 1. The minimum amount of decommissioning funds estimated to be required pursuant to 10 CFR 50.75(b) and (c).
At December 31, 2004
$47,101,500
$47,101,500 AEC's calculation of the NRC minimum formula is reflected in Exhibit 1.
- 2. The amount accumulated at the end of the calendar year preceding the date of the report for items included in 10 CFR 50.75(b) and (c).
Market Value at December 31, 2004
$12,960,398
$12,960,398
- 3.
See Exhibit 2 for a schedule of the annual amounts remaining to be collected.
- 4.
The assumptions used regarding escalation in decommissioning cost, rates of earnings on decommissioning funds, and rates of other factors used in funding projections.
Estimated Inflation rate for decommissioning costs 4%
4%
Estimated Earnings rates on decommissioning funds 7.5%
7.5%
Rates of other factors used in funding projections (None)
(None)
AEC sets its own rates, subject to the approval of the U.S.
Department of Agriculture, Rural Utilities Service. AEC believes the above assumptions are reasonable.
- 5.
Any power sale contracts upon which licensee is relying to (see below)
(see below) provide financial assurance.
AEC is the wholesale power supplier for the 14 rural electric cooperatives in Pennsylvania and New Jersey. AEC has All-requirements contracts with its 14 member distribution cooperatives, which is the source for funding the Trust Fund.
- 6.
Modifications to licensee's method of providing financial None None assurance since previous report.
- 7.
Material changes to trust agreement.
Exhibit 1 Calculation of Escalation Factors Used in Computation of Minimum Financial Assurance Amount for Decommissioning Susquehanna Steam Electric Station Units 1 and 2 Boiling Water Reactor (BWR)
Escalation Factor Formula -
0.65(L) + 0.13(E) + 0.22(B)
Escalation = (0.65 x 2.076) + (0.13 x 1.495) + (0.22 x 8.860)
= (1.349 + 0.194 + 1.949) = 3.489 (L) - Labor - (Bureau of Labor Statistics, ECU 13102, Total Compensation, Private Industry, Northeast Region Northeast region - Fourth Quarter 2004 Index Number 174.2 Scaling Factor (NRUEG 1307 Rev.10) 1.555 January 1986 Index Number 130.5 L= (174.2X 1.555)
= 2.076 130.5 (E) - ENERGY (Producer Price Index Commodities, Series ID: WPU0543 and WPU0573)
E = (0.54P + 0.46F)
E = (0.54 x 1.349) + (0.46 x 1.668)
E = 0.72846+ 0.76728 = 1.495 P - Industrial Power, 500 KW demand - (Commodity 0543)
September 2004 Index Number 154.0 January 1986 Index Number 114.2 (1)
P =
154.0
= 1.349 114.2 F - Light fuel oils - (Commodity 0573)
September 2004 Index Number 136.8 January 1986 Index Number 82.0 F =
136.8
= 1.668 82.0 (B) Waste Burial NUREG - 1307, REV.10, "NRC Report on Waste Burial Charges" Table 2.1 South Carolina Factor 8.860 (1) Represents the national base value of P at January 1986. The base value of P is no longer determined on a regional basis.
Exhibit 1 Computation of Minimum Financial Assurance Amount for Decommissioning Susquehanna Steam Electric Station Units 1 and 2 Unit 1 Unit 2 Base amount for BWR greater than 3,400 MWt = $135 million The Power Level of Unit 1 and Unit 2 is = 3,489 MWt Ownership percentage Base amount per unit Escalation Factor Escalated Amount per Unit Total Escalated Amount (Unit I + Unit 2)
$94,203,000
$135,000,000 10%
$13,500,000 3.489
$47,101,500
$135,000,000 10%
$13,500,000 3.489
$47,101,500
Exhibit 2 AEC Nuclear Decommissioning Trust Expected Contributions Year Unit I Unit 2 Total 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2005-2023
$888,880
$946,657 51,008,189
$1,073,722
$1,143,514
$1,217,842
$1,297,002
$1,381,307
$1,471,092
$1,566,713
$1,668,549
$1,777,005
$1,892,510
$2,015,523
$2,146,532
$2,286,057
$2,434,650
$2,592,903
$0
$28,808,644
$888,880
$946,657
$1,008,189
$1,073,722
$1,143,514
$1,217,842
$1,297,002
$1,381,307
$1,471,092
$1,566,713
$1,668,549
$1,777,005
$1,892,510
$2,015,523
$2,146,532
$2,286,057
$2,434,650
$2,592,903
$2,761,441
$31,570,086
$1,777,759
$1,893,313
$2,016,379
$2,147,443
$2,287,027
$2,435,684
$2,594,003
$2,762,614
$2,942,183
$3,133,425
$3,337,098
$3,554,009
$3,785,020
$4,031,046
$4,293,064
$4,572,113
$4,869,301
$5,185,805
$2,761,441
$60,378,730