ML090910613

Submittal of Decommissioning Funding Status Report Pursuant to 10 CFR 50.75(f)(1)

ML090910613
Person / Time
Site:	Quad Cities
Issue date:	03/30/2009
From:	Cindy Montgomery MidAmerican Energy Co
To:	Document Control Desk, Office of Nuclear Reactor Regulation
References
Download: ML090910613 (5)

Text

MidAmerican MidAmerican Energy 4299 Northwest Urbandale Drive w ENERGY Urbandale, Iowa 50322-7916 OBSESSIVELY, RELENTLESSLY Ar YOUR SERVICE. 515 281-2976 Telephone 515 242:4398 Fax crmontcomerv(midamerican.com Charles R. Montgomery Managing Senior Attorney March 30, 2009 U.S. Nuclear Regulatory Commission Attention: Document Control Desk Mail Stop O-P1-17 One White Flint' North 11555 Rockville Pike Rockville, MD 20852-2738 Re: Decommissioning Funding Status Report Pursuant to 10 CFR

§50.75(f)(1)

Document Control Desk:

Enclosed is a signed original version of MidAmerican Energy Company's Decommissioning Funding Status Report for MidAmerican's twenty-five (25) percent share of the Quad Cities Nuclear Power Station, submitted pursuant to 10 CFR §50.75(f)(1).

If you have any questions regarding this submission, please contact the undersigned.

Respectfully submitted, iz.5-Cc: Steven R. Hom Mail Stop 12-D3 One White Flint North 11555 Rockville Pike Rockville, MD 20852-2738 Karla K. Stoedter Sr. Resident Inspector 2 2 7 1 2 - 2 0 6 th Avenue, North Cordova, IL 61242-9740 Oct mg 42 F_ý

2008 DECOMMISSIONING FUNDING STATUS REPORT 10 CFR 50.75(f)(1)

(For The Year Ending December 31, 2008)

QUAD CITIES NUCLEAR POWER STATION, UNITS 1 & 2 Submitted by MidAmerican Energy Company Dated: March 30, 2009

OVERVIEW This Decommissioning Funding Status Report is being submitted pursuant to 10 CFR 50.75(f)(1) by MidAmerican Energy Company (MEC), a twenty-five percent owner of Quad Cities Nuclear Power Station, Units 1 & 2 (Quad Cities).

ADDITIONAL INFORMATION 1.) Amount of decommissioning funds estimated to be required pursuant to 10 CFR 50.75(b) and (c).

Determined in accord with 10 CFR 50.75(b) and applicable formulas in 10 CFR 50.75(c) and reported in end of year 2008 dollars.

NRC Minimum Unit 1 $135,712,452 Unit 2 $135,712,452 Totals $271,424,905 NRC Minimum (Amount Required for Prepayment)

Unit 1 $78,725,418 Unit 2 $78,725,418 Totals $157,450,836 2.) Amount accumulated to the end of the calendar year preceding the date of the report.

As of December 31, 2008, MEC had accumulated: $231,776,780.

External Trust Fund Balance (Fair Market value)

Unit 1 $115,853,027 Unit 2 $115,923,753 Totals $231,776,780 3.) Schedule of the annual amount remaining to be collected.

Within the meaning of 10 CFR 50.75(e)(1)(ii)(A), MEC collects the estimated total cost of decommissioning through rates established by "cost of service" or similar ratemaking regulation. On July 27, 2007, MidAmerican Energy Company received an Iowa Utilities Board (RUB) Order Approving Stipulation and Agreement which stated that MidAmerican's annual Iowa jurisdictional decommissioning cost included in the cost of 2

service is $1,595,964 divided equally between the two Quad Cities Units, commencing January 1, 2007. MidAmerican plans to continue customer collections at that same level through the operating license period of the plant. On October 28, 2004, the NRC issued renewed facility operating licenses for Quad Cities Nuclear Power Station Unit 1 (License No. DPR-29) and Unit 2 (License No. DPR-30) effective as of the date of issuance and which shall expire at midnight on December 14, 2032, in effect extending the licenses an additional twenty years.

4.) Assumptions used regarding rates of escalation in decommissioning costs, rates of earnings on decommissioning funds, and rates of other factors used in funding projections.

In filings with the IUB, MEC periodically utilizes appropriate assumptions for decommissioning cost escalations and earnings rates. Solely for purposes of meeting NRC's minimum requirements, MEC has calculated that the current fund balances and annual funding levels, together with earnings at a 2 percent annual real rate of return as permitted by 10 CFR 50.75(e)(1)(ii), satisfy NRC's minimum funding assurance requirements. Given the current fund balances, anticipated earnings on the funds, and planned future contributions, MEC expects that fully adequate funding will be available for each unit at the time of decommissioning.

5.) Any contracts upon which the licensee is relying pursuant to 10 CFR 50.75(e)(1)(v).

MEC is not relying upon any contract for purposes of providing decommissioning funding within the meaning of 10 CFR 50.75(e)(1)(v).

6.) Any modifications occurring to a licensee's current method of providing financial assurance since the last submitted report.

MEC continues to use the external sinking fund method of providing decommissioning funding assurance.

7.) Any material changes to trust agreements.

While not necessarily a material change, since MidAmerican's last Decommissioning Funding Status Report, in 2007, MidAmerican did amend its trust agreements in order to facilitate a special transfer, or "pour-over," of trust assets from the non-tax qualified to the tax qualified trust funds, as permitted under the December 2007, U.S. Department of Treasury regulations, section 1.468A-8T (Internal Revenue Code 468A(f)). These regulations permit the tax-free special transfer of such assets to the tax qualified trusts, thereby permitting MidAmerican to place trust assets in a context where earnings on those assets will be taxed at a lower rate than is possible in the non-tax qualified trusts (i.e., a 20% federal income tax rate vs. a 35% rate-the former being the federal income rate for the tax qualified trusts, and 35% being the rate for the non-tax qualified trusts). The following table identifies the current Trustee and Investment Manager for each fund.

3

Trust Trustee Investment Manager Unit 1, Qualified The Bank of New York NISA Investment Advisors Mellon Unit 1, Non-Qualified The Bank of New York NISA Investment Advisors Mellon Unit 2, Qualified The Bank of New York NISA Investment Advisors Mellon Unit 2, Non-Qualified The Bank of New York NISA Investment Advisors Mellon MIDAMERICAN ENERGY COMPANY A

By:

Charles R. Montgomery, Managing Si MidAmerican Energy Company 4299 Northwest Urbandale Drive Urbandale, IA 50322-7916 (515) 281-2976 crmontaomerv(&midamerican.com 4