ML070990053

CFR 50.75 Report on Status of Decommissioning Funding

ML070990053
Person / Time
Site:	Wolf Creek
Issue date:	03/29/2007
From:	Stull A Wolf Creek
To:	Document Control Desk, NRC/NRR/ADRO
References
CO 07-0003
Download: ML070990053 (5)

Text

W;\0LF CREEK NUCLEAR OPERATING CORPORATION Annette F. Stull March 29, 2007 Vice President and Chief Administrative Officer (620)364-4004 (620)364-4017 facsimile anstull@wcnoc.com CO 07-0003 U.S. Nuclear Regulatory Commission ATTN: Document Control Desk Washington, DC 20555

Subject:

Docket No. 50-482: 10 CFR 50.75 Report on Status of Decommissioning Funding Gentlemen:

Pursuant to 10 CER 50.75, this letter and attachments report the status of decommissioning funding for the Wolf Creek Generating Station (WCGS) located near Burlington, Kansas.

General Information Wolf Creek Nuclear Operating Corporation (WCNOC) is a jointly owned corporation formed by its owners: Kansas Gas and Electric Company (KGE), a wholly-owned subsidiary of Westar Energy, Inc., Kansas City Power & Light Company (KCPL), a wholly-owned subsidiary of Great Plains Energy Incorporated, and Kansas Electric Power Cooperative, Inc. (KEPCo).

WCNOC acts as an agent on behalf of its owners to operate, maintain, repair, decontaminate, and decommission WCGS. While WCNOC holds the operating license for WCGS, its formation has not changed the ownership or ultimate responsibility for the costs (including decommissioning) of WOGS.

Report Items Attachment I shows the estimated decommissioning funds required pursuant to 10 CFR 50.75 (b) and (c). Attachment 11provides the total value of funds (including net earnings to date) accumulated in each owner's external trust fund as of December 31, 2006. Also reported on. 1is a schedule of the annual amounts remaining to be collected and assumptions for rates of cost escalation and earnings on funds. The rate orders which authorize collection of these amounts are based on a 2005 site specific study for WCGS, which assumes demolition of all structures at the plant site. Approximately 89% of the study's total estimated costs are for work scopes considered in the minimum decommissioning cost formulas in 10 CFR 50.75 (b) and (c).

P.O. Box 411 / Burlington, KS 66839 / Phone: (620) 364-8831 An Equal Opportunity Employer M/F/HCNVET A o

CO 07-0003 Page 2 of 2 There have been no modifications to the method for providing financial assurance since the last submitted report. Each owner has an external trust fund that it maintains to provide for its share of WCGS decommissioning costs, and is making regular contributions from amounts collected in electric rates approved by their state commissions and the Federal Energy Regulatory Commission. Each owners' schedule of contributions under Kansas Corporation Commission (KCC) jurisdiction is based on a 60 year plant life for WCGS. KCPL's schedule of contributions under Missouri Public Service Commission (MPSC) jurisdiction is also based on a 60 year plant life. WCNOC has filed for license extension of 20 years in September 2006.

No amendments to the owners' trust agreements have been approved since the last submitted report. There are no other contracts upon which they are relying pursuant to paragraph (e) (1)

(v) of 10 CER 50.75.

There are no regulatory commitments contained within this correspondance. If you have any questions, please call me at (620) 364-4004, or Mr. Kevin Moles at (620) 364-4126.

Sincerely, Annette F. Stull AFS/rlt Attachment I - Minimum Decommissioning Funds Estimate 1- Decommissioning Funding Status Report cc: J. N. Donohew (NRC), w/a V. G. Gaddy (NRC), w/a B. S. Mallett (NRC), w/a Senior Resident Inspector (NRC), w/a

Attachment I to CO 07-0003 Page 1 of 1 WOLF CREEK NUCLEAR OPERATING CORPORATION Minimum Decommissioning Funds Estimate pursuant to 10 CFR 50.75 (b) and (c)

MINIMUM ESTIMATE

$ -105

[Wolf Creek is a PWR licensed for 3,565 MWt]

Escalation Factor (see calculation below) 3.545 Minimum estimate - Dec04 dollars in Millions $ 372 Escalation per Para-graph (c)(2)

Escalation Factor (ESC) = 0.65 Labor + 0. 13 Energy + 0.22 Waste Burial Share 4Q '04 Report Labor 65% 2.138 1.390 Energy 13% 1.883 0.245 Waste Burial 22% 8.683 1.910 TOTAL ESCALATION FACTOR 3.545 NOTE: 4Q '06 factors per Thelen Reid & Priest LLP memo dated February 2007.

Labor 4Q '06 was found by visiting the web site http//www.bls.gov/data/ then perfoming calculation as stated in the Thelen Reid & Priest NRC Certification Update, page 3, step 5.

SITE SPECIFIC STUDY (Auaust 2005)

Decommissioning Alternative DECON DECON Period (2005 $s)  % Total Millions Preparation for Decommissioning $ 25 5%

Radioactive Systems/Structures and License Termination 437 84%

Subtotal - Applicable to NRC Minimum 462 89%

Other Systems/Structures and Site Restoration 56 11%

TOTAL COST ESTIMATE $ 518 100%

1to CO 07-0003 Page 1 of 2 WOLF CREEK NUCLEAR OPERATING CORPORATION Decommissioning Funding Status Report as of December 31, 2004 (Dollars in Thousands)

TOTAL KGE KCPL KEPCo Market Value of External $224,223 $110,911 $104,066 $9,246 Sinking Fund as of 12/31/06 Schedule of Amounts to be Collected (as approved by rate-selling authorities based on Site Specific Study) 2006 7,952 3,865 3,699 388 2007 7,933 3,865 3,674 394 2008 6,969 2,895 3,674 400 2009 6,974 2,895 3,674 405 2010 6,981 2,895 3,674 412 2011 6,987 2,895 3,674 418 2012 6,993 2,895 3,674 424 2013 6,999 2,895 3,674 430 2014 7,006 2,895 3,674 437 2015 7,012 2,895 3,674 443 2016 7,019 2,895 3,674 450 2017 7,026 2,895 3,674 457 2018 7,033 2,895 3,674 464 2019 7,040 2,895 3,674 471 2020 7,047 2,895 3,674 478 2021 7,054 2,895 3,674 485 2022 7,061 2,895 3,674 492 2023 7,068 2,895 3,674 499 2024 7,076 2,895 3,674 507 2025 7,084 2,895 3,674 515 2026 7,091 2,895 3,674 522 2027 7,099 2,895 3,674 530 2028 7,107 2,895 3,674 538 2029 7,115 2,895 3,674 546 2030 7,123 2,895 3,674 554 2031 7,132 2,895 3,674 563 2032 7,140 2,895 3,674 571 2033 7,149 2,895 3,674 580 2034 7,157 2,895 3,674 588 2035 7,166 2,895 3,674 597 2036 7,175 2,895 3,674 606 2037 7,184 2,895 3,674 615 2038 7,193 2,895 3,674 624 2039 7,203 2,895 3,674 634 2040 7,212 2,895 3,674 643 2041 7,222 2,895 3,674 653 1to CO 07-0003 Page 2 of 2 2042 7,232 2,895 3,674 663 2043 7,242 2,895 3,674 673 2044 7,252 2,895 3,674 683 2045 1,642 724 918 0 Assump~tions re: Rates/Factors specific to Owner and Jurisdiction Cost Escalation Rate Kansas 4.40% 4.40% 4.40%

Missouri - 4.40%

After Tax Earnings on Funds Kansas 5.71% 6.48% 7.00%

Missouri - 6.48%