L-09-064, Submittal of Decommissioning Reports for Year Ending December 31, 2008

Submittal of Decommissioning Reports for Year Ending December 31, 2008

ML090970287
Person / Time
Site:	Beaver Valley, Davis Besse, Perry
Issue date:	03/27/2009
From:	Halnon G FirstEnergy Nuclear Operating Co
To:	Document Control Desk, Office of Nuclear Reactor Regulation
References
L-09-064
Download: ML090970287 (11)

Text

FENOC 76 South Main Street FirstEnergyNuclear Operating Company Akron, Ohio 44308 March 27, 2009 L-09-064 10 CFR 50.75 ATTN: Document Control Desk U. S. Nuclear Regulatory Commission Washington, DC 20555-0001

SUBJECT:

Beaver Valley Power Station Units 1 and 2 Docket No. 50-334, License No. DPR-66 Docket No. 50-412, License No. NPF-73 Davis-Besse Nuclear Power Station Docket No. 50-346, License No. NPF-3 Perry Nuclear Power Plant Docket No. 50-440, License No. NPF-58 Submittal of the Decommissioning Reports for Beaver Valley Power Station Units 1 and 2, Davis-Besse Nuclear Power Station, and Perry Nuclear Power Plant Pursuant to 10 CFR 50.75(f)(1), the FirstEnergy Nuclear Operating Company (FENOC),

on behalf of the FirstEnergy Corp., is submitting the Decommissioning Reports for the Beaver Valley Power Station Units 1 and 2, the Davis-Besse Nuclear Power Station, and the Perry Nuclear Power Plant for the year ending December 31, 2008.

There are no regulatory commitments contained in this letter. If there are any questions, or if additional information is required, please contact Mr. Thomas A. Lentz, Manager - Fleet Licensing, at (330) 761-6071.

Director, Fleet Regulatory Affairs LA(Z

Beaver Valley Power Station Units 1 and 2 Davis-Besse Nuclear Power Station Perry Nuclear Power Plant L-09-064 Page 2

Enclosures:

A. Decommissioning Funding Status Report - Beaver Valley Power Station, Unit 1 B. Decommissioning Funding Status Report - Beaver Valley Power Station, Unit 2 C. Decommissioning Funding Status Report - Davis-Besse Nuclear Power Station D. Decommissioning Funding Status Report - Perry Nuclear Power Plant cc: NRC Region I Administrator NRC Region III Administrator NRC Resident Inspector (Beaver Valley)

NRC Resident Inspector (Davis-Besse)

NRC Resident Inspector (Perry)

NRR Project Manager (Beaver Valley)

NRR Project Manager (Davis-Besse)

NRR Project Manager (Perry)

Director BRP/DEP Site BRP/DEP Representative Utility Radiological Safety Board

Enclosure A Decommissioning Funding Status Report - Beaver Valley Power Station,- Unit 1 Page 1 of 2 This report reflects FirstEnergy Corp.'s consolidated share of ownership interest in Beaver Valley Power Station, Unit 1, as of December 31, 2008.

1. The minimum decommissioning fund estimate, pursuant to 10 CFR 50.75(b) and (c)

(see Schedule 1):

FirstEnergy Nuclear Generation Corp. (FENGenCo) $396,953,480

2. The amount accumulated in external trust funds at December 31, 2008:

FENGenCo $201,268,744

3. A schedule of the annual amounts over the number of years remaining to be collected from ratepayers:

Amount Remaining $0 Number of years to Collect 0

4. The assumptions used regarding rates of escalation in decommissioning costs, rates of earnings on decommissioning funds, and rates of other factors used in funding projections:

Consolidated Ownership Interest in Unit 100%

"Real" Rate of Return through Dismantlement 2.00%

Year of Final Dismantlement 2035 Year of License Termination 201.6

5. There are no contracts upon which the owners/licensees are relying pursuant to 10 CFR 50.75(e)(1)(v).

6. There has been no modification to the current method of providing decommissioning funding assurance since the last submitted report.

7. There have been no material changes to the applicable trust agreement(s) since the last submitted report.

8. FENOC recognizes that a shortfall exists when the existing trust balances and assumed earnings are compared with the NRC formula amount calculated in Item 1, above. FENOC developed a site specific analysis using a SAFSTOR approach which establishes a minimum decommissioning fund estimate of $279,856,000.

This analysis utilized an escalation rate of 3.4880%, a 2% real rate of return, and an estimated final year of dismantlement of 2078. This analysis indicates that there will be a shortfall; however, this shortfall is within the existing parental guarantee of

$80,000,000. This analysis can be made available for inspection upon request.

Enclosure A Decommissioning Funding Status Report - Beaver Valley Power Station, Unit 1 Page 2 of 2 Schedule 1 FIRSTENERGY CORP.

Calculation of Minimum Financial Assurance Amount December 31, 2008 BEAVER VALLEY POWER STATION, UNIT 1 Pennsylvania Reqions Labor (L) = Northeast Energy (E) = National Waste Burial (B) = South Carolina For PWR Unit Adjustment Escalation Factor Ratio Factor 2.370 0.65 1.541 1.816 0.13 0.236 9.872 0.22 2.172 PWR Escalation Factor = 3.949 Base Amount for PWR between 1200 MWt and 3400 MWt = ($75m + 0.0088P)

(P = power level in megawatts thermal = 2,900)

($75 + 0.0088(2,900)) million = $100,520,000 Escalated Amount for unit =

100,520,000 x 3.949 $396,953,480 Owner/Licensee Ownership FirstEnergy Nuclear Generation Corp. 100.00% $396,953,480

Enclosure B Decommissioning Funding Status Report - Beaver Valley Power Station, Unit 2 Page 1 of 3 This report reflects FirstEnergy Corp.'s consolidated share of ownership interest in Beaver Valley Power Station, Unit 2, as of December 31, 2008.

1. The minimum decommissioning fund estimate, pursuant to 10 CFR 50.75(b) and (c)

(see Schedule 1):

Ohio Edison Company $ 85,980,124 The Toledo Edison Company 72,483,705 FirstEnergy Nuclear Generation Corp. (FENGenCo) 238,489,651 FirstEnergy Consolidated $396,953 480

2. The amount accumulated in external trust funds at December 31, 2008:

Ohio Edison Company $ 63,725,200 The Toledo Edison Company 73,500,337 FENGenCo 130,571,665 FirstEnergy Consolidated $267,797,202

3. A schedule of the annual amounts over the number of years remaining to be collected from ratepayers:

Amount Remaining $0 Number of years to Collect 0

4. The assumptions used regarding rates of escalation in decommissioning costs, rates of earnings on decommissioning funds, and rates of other factors used in funding projections:

Consolidated Ownership Interest in Unit 100%

"Real" Rate of Return through Dismantlement 2.00%

Year of Final Dismantlement 2035 Year of License Termination 2027

5. There are no contracts upon which the owners/licensees are relying pursuant to 10 CFR 50.75(e)(1)(v).

6. There has been no modification to the current method of providing decommissioning funding assurance since the last submitted report.

7. There have been no material changes to the applicable trust agreement(s) since the last submitted report.

Enclosure B Decommissioning Funding Status Report - Beaver Valley Power Station, Unit 2 Page 2 of 3

8. FENOC recognizes that a shortfall exists for FENGenCo when the existing trust balances and assumed earnings are compared with the NRC formula amount calculated in Item 1, above. However, when combined in aggregate with The Toledo Edison Company and Ohio Edison Company funds (also FirstEnergy Corp. subsidiaries), no shortfall exists. FENOC developed a site specific analysis using a SAFSTOR approach. This analysis utilized an escalation rate of 3.4710%, a 2% real rate of return, and an estimated final'year of dismantlement of 2078. This analysis indicates that only a de minimis shortfall exists for FENGenCo. When combined with The Toledo Edison Company and Ohio Edison Company funds, no shortfall exists. This analysis can be made available for inspection upon request:

Enclosure B Decommissioning Funding Status Report - Beaver Valley Power Station, Unit 2 Page 3 of 3 Schedule 1 FIRSTENERGY CORP.

Calculation of Minimum Financial Assurance Amount December 31, 2008 BEAVER VALLEY POWER STATION, UNIT 2 Pennsylvania Reaions Labor (L) = Northeast Energy (E) = National Waste Burial (B) = South Carolina For PWR Unit Adjustment Escalation Factor Ratio Factor 2.370 0.65 1.541 1.816 0.13 0.236 9.872 0.22 2.172 PWR Escalation Factor = 3.949 Base Amount for PWR between 1200 MWt and 3400 MWt = ($75m + 0.0088P)

(P = power level in megawatts thermal = 2,900)

($75 + 0.0088(2,900)) million = $100,520,000 Escalated Amount for unit =

100,520,000 x 3.949 = $396,953,480 Owner/Licensee Ownership Ohio Edison Company 21.66% $ 85,980,124 The Toledo Edison Company 18.26% $ 72,483,705 FirstEnergy Nuclear Generation Corp. 60.08% $238,489,651 Total FENGenCo $396,953,480

Enclosure C Decommissioning Funding Status Report - Davis-Besse Nuclear Power Station Page 1 of 2 This report reflects FirstEnergy Corp.'s consolidated share of ownership interest in Davis-Besse Nuclear Power Station as of December 31, 2008.

1. The minimum decommissioning fund estimate, pursuant to 10 CFR 50.75(b) and (c)

(see Schedule 1):

FirstEnergy Nuclear Generation Corp. (FENGenCo) $385,587,014

2. The amount accumulated in external trust funds at December 31, 2008:

FENGenCo $379,312,479

3. A schedule of the annual amounts over the number of years remaining to be collected from ratepayers:

Amount Remaining $0 Number of years to Collect 0

4. The assumptions used regarding rates of escalation in decommissioning costs, rates of earnings on decommissioning funds, and rates of other factors used in funding projections:

Consolidated Ownership Interest in Unit 100%

"Real" Rate of Return through Dismantlement 2.00%

Year of Final Dismantlement 2024 Year of License Termination 2017

5. There are no contracts upon which the owners/licensees are relying pursuant to 10 CFR 50.75(e)(1)(v).

6. There has been no modification to the current method of providing decommissioning funding assurance since the last submitted report.

7. There have been no material changes to the applicable trust agreement(s) since the last submitted report.

Enclosure C Decommissioning Funding Status Report - Davis-Besse Nuclear Power Station Page 2 of 2 Schedule 1 FIRSTENERGY CORP.

Calculation of Minimum Financial Assurance Amount December 31, 2008 DAVIS-BESSE NUCLEAR POWER STATION Ohio Regions Labor (L) = Midwest Energy (E) = National Waste Burial (B) = South Carolina For PWR Unit Adjustment Escalation Factor Ratio Factor 2.240 0.65 1.456 1.816 0.13 0.236 9.872 022 2.172 PWR Escalation Factor = 3.864 Base Amount for PWR between 1200 MWt and 3400 MWt = ($75m + 0.0088P)

(P = power level in megawatts thermal = 2,817)

($75 + 0.0088(2,817)) million = $ 99,789,600 Escalated Amount for unit =

99,789,600 x 3.864 $385,587,014 Owner/Licensee Ownership FirstEnergy Nuclear Generation Corp. 100.00% $385,587,014

Enclosure D Decommissioning Funding Status Report - Perry Nuclear Power Plant Page 1 of 2 This report reflects FirstEnergy Corp.'s consolidated share of ownership interest in Perry Nuclear Power Plant as of December 31, 2008.

1. The minimum decommissioning fund estimate, pursuant to 10 CFR 50.75(b) and (c)

(see Schedule 1):

Ohio Edison Company $ 70,615,314 FirstEnergy Nuclear Generation Corp. (FENGenCo) 490,714,686 FirstEnergy Consolidated $561,330 000

2. The amount accumulated in external trust funds at December 31, 2008:

Ohio Edison Company $ 52,957,080 FENGenCo 322,564,172 FirstEnergy Consolidated $375,521 252

3. A schedule of the annual amounts over the number of years remaining to be collected from ratepayers:

Amount Remaining $0 Number of years to Collect 0

4. The assumptions used regarding rates of escalation in decommissioning costs, rates of earnings on decommissioning funds, and rates of other factors used in funding projections:

Consolidated Ownership Interest in Unit 100%

"Real" Rate of Return through Dismantlement 2.00%

Year of Final Dismantlement 2034 Year of License Termination 2026

5. There are no contracts upon which the owners/licensees are relying pursuant to 10 CFR 50.75(e)(1)(v).

6. There has been no modification to the current method of providing decommissioning funding assurance since the last submitted report.

7. There have been no material changes to the applicable trust agreement(s) since the last submitted report.

8. FENOC recognizes that a shortfall of a de minimis amount exists for FENGenCo under the NRC formula method. However, when combined in aggregate with Ohio Edison Company funds (another FirstEnergy Corp. subsidiary), no shortfall exists.

Enclosure D Decommissioning Funding Status Report - Perry Nuclear Power Plant Page 2 of 2 Schedule 1 FIRSTENERGY CORP.

Calculation of Minimum Financial Assurance Amount December 31, 2008 PERRY NUCLEAR POWER PLANT Ohio Regions Labor (L) = Midwest Energy (E) = National Waste Burial (B) = South Carolina For BWR Unit Adjustment Escalation Factor Ratio Factor 2.240 0.65 1.456 1.830 0.13 0.238 11.198 0.22 2.464 BWR Escalation Factor = 4.158 Base Amount for BWR greater than 3400 MWt = $135,000,000 Escalated Amount for unit=

135,000,000 x 4.158 $561,330,000 Owner/Licensee Ownership Ohio Edison Company 12.58% $ 70,615,314 FirstEnergy Nuclear Generation Corp. 87.42% $490,714,686 Total FENGenCo $561,330,000