ML060960131

Decommissioning Fund Status Report

ML060960131
Person / Time
Site:	Saint Lucie, Turkey Point
Issue date:	03/27/2006
From:	Stall J Florida Power & Light Co
To:	Document Control Desk, Office of Nuclear Reactor Regulation
References
L-2006-083
Download: ML060960131 (6)

Text

Florida Power & Light Company, 700 Universe Boulevard, P.O. Box 14000, Juno Beach, FL 3340E8-0420 I March 27, 2006 FPI.

L-2006-083 10 CFR 50.75(f)(1)

U.S. Nuclear Regulatory Commission Attn: Document Control Desk Washington, DC 20555 RE: St. Lucie Units 1 and 2 Docket Nos. 50-335 and 50-389 Turkey Point Units 3 and 4 Docket Nos. 50-250 and 50-251 Decommissioning Fund Status Report Pursuant to 10 CFR 50.75(0(1), attached is the Florida Power & Light Company (FPL)

Decommissioning Fund Status Report for St. Lucie Units 1 and 2 and Turkey Point Units 3 and 4.

This report is being provided in accordance with 10 CFR 50.75(0(1) due to the proposed merger of Constellation Energy and FPL Group.

FPL is the sole owner of Turkey Point Units 3 and 4 and St. Lucie Unit 1. FPL, Florida Municipal Power Agency, and Orlando Utilities Commission own St. Lucie Unit 2. The report for St. Lucie Unit 2 provides the status of decommissioning funds for all three owners of that unit.

FPL has taken into consideration the information provided in NRC Regulatory Issue Summary 2001-07 (February 23, 2001), "10 CFR 50.75(0(1) Reports on the Status of Decommissioning," and has elected not to include the costs of non NRC-defined decommissioning activities in the attached reports. Additionally, FPL used NUREG-1307, Rev. 11, Report on Waste Burial Charges, in determining the decommissioning fund requirements.

Should there be any questions, please contact Mr. Skip Gwinn at (561) 691 - 7439.

Very truly yours, J. A. Stall Senior Vice President Nuclear And Chief Nuclear Officer Attachments AT30) an FPL Group company

St. LLcie Units 1 and 2 and Turkey Point Units 3 and 4 Docket Nos. 50-335, 50-389, 50-250, and 50-251 L-2006-083 Attachment 1 Page 1 DECOMMISSIONING FUND STATUS REPORT St. Lucie Unit 1 Florida Power & Light Company (FPL) hereby submits this Decommissioning Fund Status Report in compliance with 10 CFR 50.75(f).

1. FPL is the sole owner of St. Lucie Unit 1.

2. The amount of decommissioning funds estimated to be required pursuant to 10 CFR 50.75 (b) and (c) is $321,078,636.

3. The amount of decommissioning funds accumulated, as of December 31, 2005 is

$330,174,204. The accumulated fund amount is net of estimated amounts for:

• extended storage of spent nuclear fuel; and

• non-nuclear demolition and restoration costs.

4. Schedule of Future Annual Contributions (Net of Estimated Amounts for Extended Storage of Spent Nuclear Fuel and Non-Nuclear Demolition and Restoration Costs)

$0 to the Qualified Decommissioning Trust annually through 2009

$0 to the Non-Qualified Decommissioning Trust annually through 2009 Florida Public Service Commission (FPSC) Order No. PSC-05-0902-S-EI has suspended contributions to the decommissioning trust effective September 1, 2005.

5. The assumed earnings rate approved in FPSC Order No. PSC-05-0902-S-EI is 5.0%. The assumed escalation rate approved in the same order is 4.5%. The real rate of return assumed is (.50%.)

6. FPL does not rely upon contracts as defined by 10 CFR 50.75(e)(1)(v).

7. There have been no changes to the method of financial assurance since the last submitted report. FPL continues to utilize an external sinking fund into which deposits are made at least annually.

8. Changes to External Sinking Fund Trust Agreements:

The decommissioning trust agreements for the St. Lucie Nuclear Plant were amended and restated effective July 1, 2005 to reflect the fact that the trustee was changed and to make other changes. The changes to these trust agreements are explained in Florida Power &

Lght Company letters to NRC L-2005-115 dated May 11, 2005, L-2005-130 dated June 1, 2005, and L-2005-139 dated June 8, 2005. NRC accepted the changes by NRC letter dated June 16, 2005.

St. Ltcie Units 1 and 2 and Turkey Point Units 3 and 4 Docket Nos. 50-335, 50-389, 50-250, and 50-251 L-2006-083 Attachment 2 Page 1 DECOMMISSIONING FUND STATUS REPORT ST. Lucie Unit 2 Florida Power & Light Company (FPL), Florida Municipal Power Agency (FMPA), and Orlando Utilities Commission (OUC), (the Participants) hereby submit this Decommissioning Fund Status Report in compliance with 10 CFR 50.75(0.

1. The Participants own the following undivided interests in St. Lucie Unit 2.

FPL 85.10449%

FMPA 8.80600%

OUC 6.08951%

Total 100.00000%

2. The amount of decommissioning funds estimated to be required pursuant to 10 CFR 50.75 (b)and (c) are indicated below.

FPL $273,575,373 85.20510%

FMPA 28,083,207 8.74652%

OUC 19.420.056 6.04838%

Total $321,078,636 100.00000%

An adjustment was necessary to allocate the decommissioning costs of Unit 2 between the participants. This is because the decommissioning costs of Unit 2 include the costs of decommissioning facilities common to both St. Lucie Units I and 2. FMPA's and OUC's contractual obligations provide that with respect to the common facility costs, they pay only their ownership share of Unit 2 times one half of these costs. Therefore, multiplying FMPN's and OUC's respective ownership shares of Unit 2 by the total cost of decommissioning would overstate their cost obligations. This adjustment is reflected in the "St. Lucie Unit 2 - FPL Cwnership Percentage" presented on page 39 of FPL's 1994 Decommissioning Study for St.

Lucie Units 1 and 2 (Florida Public Service Commission (FPSC) Docket No. 941350-EI).

3. The amount of decommissioning funds accumulated by the Participants as of December 31, 21)05 are:

FPL $ 311,291,502 FMPA $ 30,957,803 OUC $ 22,266,067

$ 364,515,372 The accumulated fund amounts are net of estimated amounts for:

• extended storage of spent nuclear fuel; and

• non-nuclear demolition and restoration costs.

k-St. LLIcie Units 1 and 2 and Turkey Point Units 3 and 4 Docket Nos. 50-335, 50-389, 50-250, and 50-251 L-2006-083 Attachment 2 Page 2

4. Schedule of Future Annual Contributions (Net of Estimated Amounts for Extended Storage of Spent Nuclear Fuel and Non-Nuclear Demolition and Restoration Costs)

FPL

$ 0 to the Qualified Decommissioning Trust annually through 2009

$ 0 to the Non-Qualified Decommissioning Trust annually through 2009 FMPA

$ 980,000 annual contribution through 2022 OUC

$ 62,500 annual contribution through 2043 FPSC Order No. PSC-05-0902-S-EI has suspended contributions to the FPL decommissioning trust effective September 1,2005.

5. For FPL, the assumed earnings rate approved in FPSC Order No. PSC-05-0902-S-EI is 5.0%. The assumed escalation rate approved in the same order is 4.7%.

FMPA's contribution to their decommissioning fund is based upon an assumed earnings rate of 6.2% and an assumed escalation rate of 4.7%.

OUC's contribution to their decommissioning fund is based upon an assumed earnings rate of 4.40% and an assumed escalation rate of 5.0%.

The weighted average real rate of return assumed is (.35%.)

6. Nlone of the Participants rely upon contracts as defined by 10 CFR 50.75(e)(1)(v).

7. There have been no changes to the method of financial assurance since the last submitted report. The Participants continue to utilize external sinking funds into which deposits are made at least annually.

8. Changes to External Sinking Fund Trust Agreements:

The decommissioning trust agreements for the St. Lucie Nuclear Plant were amended and restated effective July 1, 2005 to reflect the fact that the trustee was changed and to make other changes. The changes to these trust agreements are explained in Florida Power &

Lght Company letters to NRC L-2005-115 dated May 11, 2005, L-2005-130 dated June 1, 2005, and L-2005-139 dated June 8, 2005. NRC accepted the changes by NRC letter dated June 16, 2005.

St. Licie Units I and 2 and Turkey Point Units 3 and 4 Docket Nos. 50-335, 50-389, 50-250, and 50-251 L-2006-083 Attachment 3 Page 1 DECOMMISSIONING FUND STATUS REPORT Turkey Point Unit 3 Florida Power & Light Company (FPL) hereby submits this Decommissioning Fund Status Report in compliance with 10 CFR 50.75(0.

1. FPL is the sole owner of Turkey Point Unit 3.

2. The amount of decommissioning funds estimated to be required pursuant to 10 CFR 50.75 (b) and (c) is $309,634,764.

3. The amount of decommissioning funds accumulated, as of December 31, 2005 is

$334,320,912. The accumulated fund amount is net of estimated amounts for:

• extended storage of spent nuclear fuel; and

• non-nuclear demolition and restoration costs.

4. Schedule of Future Annual Contributions (Net of Estimated Amounts for Extended Storage of Spent Nuclear Fuel and Non-Nuclear Demolition and Restoration Costs)

$ 0 to the Qualified Decommissioning Trust annually through 2009

$ 0 to the Non-Qualified Decommissioning Trust annually through 2009 FPSC Order No. PSC-05-0902-S-EI has suspended contributions to the decommissioning trust effective September 1, 2005.

5. The assumed earnings rate approved in Florida Public Service Commission (FPSC) Order No. PSC-05-0902-S-EI is 5.0%. The assumed escalation rate approved in the same order is 4.5%. The real rate of return assumed is (.50%.)

6. FPL does not rely upon contracts as defined by 10 CFR 50.75(e)(1)(v).

7. There have been no changes to the method of financial assurance since the last submitted report. FPL continues to utilize an external sinking fund into which deposits are made at least annually.

8. Changes to External Sinking Fund Trust Agreements:

The decommissioning trust agreements for the Turkey Point Nuclear Plant were amended and restated effective July 1, 2005 to reflect the fact that the trustee was changed and to make other changes. The changes to these trust agreements are explained in Florida Power

& Light Company letters to NRC L-2005-115 dated May 11, 2005, L-2005-130 dated June 1, 2305, and L-2005-139 dated June 8, 2005. NRC accepted the changes by NRC letter dated June 16, 2005.

St. Lucie Units 1 and 2 and Turkey Point Units 3 and 4 Docket Nos. 50-335, 50-389, 50-250, and 50-251 L-2003-083 Attachment 4 Page 1 DECOMMISSIONING FUND STATUS REPORT Turkey Point Unit 4 Florida Power & Light Company (FPL) hereby submits this Decommissioning Fund Status Report in compliance with 10 CFR 50.75(f).

1. FPL is the sole owner of Turkey Point Unit 4.

2. The amount of decommissioning funds estimated to be required pursuant to 10 CFR 50.75 (b)and (c) is $309,634,764.

3. The amount of decommissioning funds accumulated, as of December 31, 2005 is

$356,892,924. The accumulated fund amount is net of estimated amounts for:

• extended storage of spent nuclear fuel; and

• non-nuclear demolition and restoration costs.

4. Schedule of Future Annual Contributions (Net of Estimated Amounts for Extended Storage of Spent Nuclear Fuel and Non-Nuclear Demolition and Restoration Costs)

$ 0 to the Qualified Decommissioning Trust annually through 2009

$ 0 to the Non-Qualified Decommissioning Trust annually through 2009 FPSC Order No. PSC-05-0902-S-EI has suspended contributions to the decommissioning trust effective September 1, 2005.

5. The assumed earnings rate approved in Florida Public Service Commission (FPSC) Order No. PSC-05-0902-S-EI is 5.0%. The assumed escalation rate approved in the same order is 4.6%. The real rate of return assumed is (.40%.)

6. FPL does not rely upon contracts as defined by 10 CFR 50.75(e)(1)(v).

7. There have been no changes to the method of financial assurance. FPL continues to utilize an external sinking fund into which deposits are made at least annually.

8. Changes to External Sinking Fund Trust Agreements:

The decommissioning trust agreements for the Turkey Point Nuclear Plant were amended and restated effective July 1, 2005 to reflect the fact that the trustee was changed and to make other changes. The changes to these trust agreements are explained in Florida Po'Ner

& Light Company letters to NRC L-2005-115 dated May 11, 2005, L-2005-130 dated June 1, 2005, and L-2005-139 dated June 8, 2005. NRC accepted the changes by NRC letter dated June 16, 2005.