ML070800148

2007 Biennial Decommissioning Funding Status Report

ML070800148
Person / Time
Site:	Fort Calhoun
Issue date:	03/16/2007
From:	McManis J L Omaha Public Power District
To:	Document Control Desk, NRC/NRR/ADRO
References
LIC-07-0025
Download: ML070800148 (7)

Text

EVDpm I Omaha Publrc Power Distn'ct 9-44 South.16th Street Mall Omaha NE 68102-2247 March 16,2007 LIC-07-0025 U. S. Nuclear Regulatory Commission ATTN: Document Control Desk Washington, D.C. 20555

Reference:

Docket No. 50-285

SUBJECT:

Fort Calhoun Station, Unit No. 1, 2007 Biennial Decommissioning Funding Status Report In accordance with the requirements of 10 CFR 50.75(f), the Omaha Public Power District has attached the Fort Calhoun Station, Unit No. 1, 2007 Biennial Decommissioning Funding Status Report. No commitments to the NRC are made in this letter. If you should you have any questions regarding

~ this matter, please contact Mr. John W. Thurber at (402) 636-3056.

Attachment Employment with Equal Opportunity March 2007 OMAHA PUBLIC POWER DISTRICT FORT CALHOUN STATION UNIT NO. I 2007 BIENNIAL DECOMMISSIONING FUNDING STATUS REPORT Based on Nuclear Regulatory Commission (NRC) Regulation 10 CFR 50.75 (9 The NRC requires that Omaha Public Power District (OPPD) report by March 31, 2007 and at least once every two years thereafter on the status of its decommissioning funding for Fort Calhoun Station Unit No. 1. Based on the decommissioning funding requirement as outlined in 10 CFR 50.75 (9, OPPD reports the following information:

A. Current Decommissionin~l Cost Estimate Pursuant to 10 CFR 50.75 (c), the January 2007 estimated minimum decommissioning amount to decommission Fort Calhoun Station Unit No. 1 is $310,285,000.

See Attachment A for detailed decommissioning cost calculation.

B. Current Decommissionina Fund Balance The OPPD Decommissioning Fund balance as of December 31,2006 is $205,536,500. -C. Annual Decommissioninn Collections E There was no annual collection for 2005 or 2006 as shown in Attachment B. 'The revenue source for any collections is "cost-of-service" electric rates. D. Rates Used to Escalate Decommissionina Costs and Fund Balances The rates used for the escalation of the decommissioning cost estimate and earnings rates on the Decommissioning Fund are shown in Attachment B. Global Insight, Inc, of Waltham, Massachusetts provides the decommissioning cost estimate inflation and earnings rates forecasts.

OPPD1s Board of Directors approved both the inflation rates and earnings rates in December 2006 as part of OPPD's Corporate Operating Plan.

Omaha Public Power District 2007 Biennial Decommissioning Funding Status Report to NRC PageTwo , E. Contracts to Hel~ Fund Decommissioning OPPD does not have any contracts pursuant to 10 CFR 50.75 (e)(l)(ii)(C) and is not relying on contracts with a "non-bypassable charge" to fund decommissioning.

F. Modifications to Method of Providing Financial Assurance There have been no modifications to OPPD's method of providing financial assurance since the decommissioning funding plan began in 1982 and continued pursuant to NRC Regulations in 1990. G. Changes in the Decommissioning Funding Plan Trust Agreement There have been no changes to OPPD's Decommissioning Funding Plan Trust Agreement since the Plan began pursuant to NRC Regulations in 1990. Dated: 3-/3 @c7?' %& J@. Thurber ~ivision Manager - Finance OMAHA PUBLIC POWER DISTRICT FORT CALHOUN STATION UNIT NO. 1 2007 BIENNIAL DECOMMISSIONING FUNDING STATUS REPORT TO NRC ATTACHMENT A 2007 Escalation of the Minimum Decommissioning Amount (MDA) Estimate for Fort Calhoun Station Unit No. 1 Based on Nuclear Regulatory Commission (NRC) Formulas and Application to OPPD The NRC accepted OPPD's Decommissioning Funding Plan in 1990. As part of the Decommissioning Funding Plan, OPPD annually calculates the MDA as follows: NRC Formula for MDA $75 million + $8800(P) = MDA for a Pressurized Water Reactor (PWR) Plant where: P = MWt reactor rating Fort Calhoun = 1500 MDA expressed in 1986 Dollars (to be escalated) Escalation of NRC Formula for MDA Estimated Decommissioning Cost in Year XX = MDA X (.65L + .13E + .22B) Where: "L" is the Labor factor. The Labor factor is to be obtained from "Monthly Labor

~eview", published by the U. S. Department of Labor - Bureau of Labor Statistics.

Specifically, the appropriate regional data from the table entitled "Employment Cost lndex - Private Nonfarm Workers", subtitled "Compensation" is to be used. In OPPD's case, data from the Midwest Region is to be used. "En is the Enemv factor. The Energy factor is to be obtained from the following two component formula specifically weighted for PWR plants: .58P + .42F = E (Energy Factor) where: "P" is the component for electric power, and "F" is the component for fuel oil Both "P" and "F" can be found in "Producer Price Indices", published by the U. S. Department of Labor - Bureau of Labor Statistics. "P" is to be obtained from the Industrial Electric Power lndex and "F" is to be obtained from the Light Fuel Oils Index. "8" is the Waste Burial factor. The Waste Burial factor is to be obtained from NRC report NUREG-1307, "Report on Waste Burial Charges" or its updates.

Attachment A Page Two OPPDWs MDA and Escalation MDA = $75 million + $8800(P) (where P = 1500 MWt) $75 million + $8800(1500)

$75 million + $13.2 million = $88.2 million (1986 Dollars) OPPD Escalation of MDA = $88.2 million X (.65L + .I 38 + .22B) Where "L", "El and "6 = "L" = Labor lndex Change Employment Cost lndex - Private Nonfarm Workers - Compensation Midwest Region (Quarterly Basis Increase) 12-2006 102.8=2.1152(anincreaseof111.52%)

1-1 986 48.6 (NRC Interpolated from 12/85 - Rebased 12-05) "E" = Energy lndex Change Energy lndex Change = (Electric Power lndex Change X 58%) + (Light Fuel Oils lndex Change X 42%) Producer Price Indices Industrial Electric Power 1-2007 170.8 = 49.56% increase change 1-1986 114.2 Light Fuel Oils 1-2007 180.3 = 1 19.88% increase change 1-1986 82.0 Application of the formula to 1-2007 leads to Energy = ((1 70.811 14.2)X .58) + ((1 80.3182.0)

X .42) Energy = 0.86746 + 0.92349 Energy = 1.79095 (an increase of 79.09%)

Attachment A Page Three "6" = Waste Burial lndex Change NUREG-1 307 (Revision

10) The Waste Burial escalation factor is found in Nuclear Regulation NUREG-1307 and its updates. OPPD1s Biennial Decommissioning Funding Status Report will use the South Carolina lndex (the only location that OPPD is permitted to send waste) in calculating the NRC Minimum Decommissioning Amount. South Carolina lndex 1-06 8.683 = 8.683 (an increase of 768.3%) (Waste Vendor Index) 1-86 1 .ooo The escalated cost formula is as follows: South Carolina Burial lndex

$88.2 million x (.65(2.1152)+.

13(1.79095)+.22(8.683))

= $310.285 million In summary, OPPD1s Fort Calhoun Station Unit No. 1 NRC Minimum Decommissioning Amount estimate escalated to January 2007 is $310,285,000.

OMAHA PUB[-IC POWER DISTRICT FORT CALHOUN STATION UNIT NO. I 2007 BIENNIAL DECOMMISSIONING FUNDING STATUS REPORT TO NRC Omaha Public Power District Minimum Decommissioning Amount Decommissioning Fund Annual Collections, Inflation Rates and Earnings Rates Decommissioning Fund Annual Collection Inflation Earnings YEAR for NRC MDA Rate Rate