ML070940277
| ML070940277 | |
| Person / Time | |
|---|---|
| Site: | Susquehanna  |
| Issue date: | 03/21/2007 |
| From: | Kammeier K Allegheny Electric Cooperative |
| To: | Document Control Desk, NRC/NRR/ADRO |
| References | |
| Download: ML070940277 (6) | |
Text
ELECTRIC COOPERATIVE, INC.
A Touchstone Energy* Cooperative 116 v*
- HARRISBURG, PA 17108-1266
- PHONE 717/233-5704
- FAX 717/234-1309 March 21, 2007 U.S. Nuclear Regulatory Commission Attn: Document Control Desk Mail Station OP 1-17 Washington, DC 20555 SUSQUEHANNA STEAM ELECTRIC STATION DECOMMISSIONING REPORT OF FINANCIAL ASSURANCE Docket Nos. 50-387 and 50-388 In accordance with 10 CFR 50.75(f)(1), we are submitting Allegheny Electric Cooperative, Inc.'s 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) 233-5704.
Sincerely, Kenneth W. Kammeier Vice President - Finance & Accounting
Attachment:
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 poý Page 1 of 1 NRC Decommissioning Funding Status Report December 31, 2006 Allegheny Electric Cooperative, Inc.
Susquehanna Steam Electric Station Allegheny Electric Cooperative (AEC) hereby submits this Decommissioning Report in compliance with 10 CFR 50.75(f)(1) for its 10 percent share of Susquehanna Units 1 and 2.
Information is submitted to provide Financial Assurance Unit # 1 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, 2006
$53,203,500
$53,203,500 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, 2006
$16,307,422
$16,307,422
- 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 and 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 Page 1 of 3 Calculation of Escalation Factors Used in Computation of Minimum Financial Assurance Amount for Decommissioning Susquehanna Steam Electric Station Units One and Two Boiling Water Reactor (BWR)
Escalation Factor Formula -
0.65(L) + 0.13(E) + 0.22(B)
Escalation = (0.65 x 2.210) + (0.13 x 1.995) + (0.22 x 10.206)
Escalation = (1.437 + 0.259 + 2.245) = 3.941 (L) - Labor - (NUREG-1307, Revision 12, Table 3.2 - Regional Factors for Labor Cost Adjustment, Northeast Region)
Lx (September 2006) = 2.210 (E) - Energy (Producer Price Index Commodities, Series ID: wpu543 and wpu0573)
E = (0.54P + 0.46F)
E = (0.54 x 1.585) + (0.46 x 2.477)
E= 0.856+ 1.139 = 1.995 P - Industrial Electric Power (wpu0543)
September 2006 Index Number 181.0 January 1986 Index Number 114.2 (1)
P=
181.0
= 1.585 114.2 F - Light Fuel Oils - (wpu0573)
September 2006 Index Number 203.1 January 1986 Index Number 82.0 F-= 203.1
= 2.477 82.0
Exhibit 1 Page 2 of 3 (B) Waste Burial NUREG - 1307, REV.12, "Table 2.1 - Values of Bx as a Function of LLW Burial Site, Waste Vendor, and Year: Bx Values for South Carolina Site (Bamwell), Non-Atlantic Compact, Direct Disposal with Vendors)
South Carolina Factor 10.206 (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 Page 3 of 3 Computation of Minimum Financial Assurance Amount for Decommissioning Susquehanna Steam Electric Station Units One and Two 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 1 + Unit 2)
$106,407,000
$135,000,000 10%
$13,500,000 3.941
$53,203,500
$135,000,000 10%
$13,500,000 3,941
$53,203,500
Exhibit 2 Page 1 of 1 AEC Nuclear Decommissioning Trust Expected Contributions Year 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2007-2023 Unit 1
$1,008,190
$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
$2,434,651
$2,592,903
$26,973,112 Unit 2
$1,008,190
$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
$2,434,651
$2,592,903
$2,761,442
$29,734,554 Total
$2,016,379
$2,147,444
$2,287,027
$2,435,684
$2,594,004
$2,762,614
$2,942,184
$3,133,426
$3,337,099
$3,554,010
$3,785,021
$4,031,047
$4,293,065
$4,572,114
$4,869,302
$5,185,806
$2,761,442
$56,707,666