ML091940389

06/30/2009-Summary of Conference Calls with Tennessee Valley Authority Regarding Decommissioning Funding Assurance, Browns Ferry, Sequoyah, Watts Bar

ML091940389
Person / Time
Site:	Browns Ferry, Watts Bar, Sequoyah
Issue date:	09/04/2009
From:	Ellen Brown Plant Licensing Branch II
To:	Boyce T Plant Licensing Branch II
Brown, E, NRR/DORL, 415-2315
Shared Package
ML091940476	List: ML091940389 ML091940463
References
TAC ME0491, TAC ME0492, TAC ME0493, TAC ME0571, TAC ME0572, TAC ME0587
Download: ML091940389 (8)

Text

UNITED STATES NUCLEAR REGULATORY COMMISSION WASHINGTON, D.C. 20555-0001 September 4, 2009 MEMORANDUM TO: Thomas H. Boyce, Chief Plant Licensing Branch 11-2 Division of Operating Reactor Licensing FROM: Eva A. Brown, Senior Project Manager IRA!

Plant Licensing Branch 11-2 Division of Operating Reactor Licensing

SUBJECT:

BROWNS FERRY NUCLEAR PLANT, UNITS 1,2, AND 3; SEQUOYAH NUCLEAR PLANT, UNITS 1 AND 2; WATTS BAR PLANT, UNIT 1,

SUMMARY

OF CONFERENCE CALLS WITH THE TENNESSEE VALLEY AUTHORITY REGARDING DECOMMISSION FUNDING ASSURANCE (TAC NOS. ME0491, ME0492, ME0493, ME0571, ME0572, AND ME0587)

On June 9 and 30, 2009, staff from the Financial, Policy, and Rulemaking Branch, the Office of General Counsel, the Office of New Reactors and the Plant Licensing Branch 11-2 held conference calls with the Tennessee Valley Authority to discuss the amount of the decommissioning funding assurance shortfall calculated by the NRC staff for the subject units, to clarify the methodology used by the NRC staff to determine decommissioning funding assurance levels, and to establish a schedule for the submittal of a plan to address the shortfall.

To facilitate the discussion the Tennessee Valley Authority (TVA) provided a spreadsheet on June 9 (Enclosure 1) and the NRC staff provided information on June 30 (Enclosure 2).

Docket Nos. 50-259, 50-260, 50- 296 50-327,50-328, and 50-390

Enclosures:

1. TVA Spreadsheet

2. NRC Information Printouts

R.al Return 5.0 c Year 2008 Annual IIFIIII' Annual Projected Funding Fund Annual Annual Projected Funding Fund Annua'

-Annual Projected Funding Fund

..'u...... 'ILY Annual

-,~

Annual Projocled Funding Fund Annual

- Annual Projected Funding Fund Annual Annual ProjocIod Funding Fund Annual Annual Projocled Funding Fund Disbursement Assurance Assets DIsbursement Assurance Bala""" DIsbursement Assurance Balance Disbursement Assurance Balance Disbursement .....urance BaIonce Disbursemenl Assurance Balance Disbursemenl Assurance BaI8nce

$1311.2 $1a.7 $117.7 1115:5 5178.7 SI9.2

$0.0

$0 M35 Actual Fund Balance

$1161 2009 $143.0 $136.2 5123~6 $194.8 5185~5 $93.7 SO $877 2010 5150.2 5143.0 5129.7 5204.5 $194.8 598.4 $0.0 SO $921 2011 5157.7 5150.2 5136.2 $214.8 $204.5 5103.3 SO.O $0 $967 2012 5165~6 5157.7 5143.0 $225.5 $214.8 5108.5 50~0 SO $1,015 2013 5173.9 5165.6 5150.2 5236.8 5225.5 5113.9 50.0 SO $1,066 2014 5182.6 5173.9 5157.7 5248.6 $236.8 5119.6 SO.O 50 $1,119 2015 5191.7 5182.6 5165~6 $261.0 5248.6 5125.6 50.0 $0 51,175 2016 $201.3 5191.7 5173.9 5274.1 5261.0 5131.8 50.0 SO 51,234 2017 $211.3 5201.3 5182~6 5287.8 $274.1 $138.4 SO.O $0 51.296 2018 $221.9 $211.3 5191.7 5302.2 $287.8 5145.4 SO.O $0 $1,360 2019 5233.0 $221.9 5201.3 5317.3 $302.2 5152.6 SO.O $0 51.428 2020 5244.7 5233.0 5211.3 512.0 5333.2 $317.3 5160.3 512.0 $0 51.500 2021 5256.9 5244.7 $221.9 $55.5 5337.2 512.0 $333.2 5168.3 $67.5 $0 51.562 2022 5269.7 $256.9 $233.0 $55.5 5295.8 555.5 $337.2 5176.7 5111.0 SO $1.569 2023 5283.2 5269.7 5244.7 555.5 5252.3 $55.5 $295.8 5185.5 5111~0 SO $1.531 2024 5297.4 5283.2 $256.9 555.5 5206.6 555.5 $252.3 $194.8 $111.0 $0 $1.491 2025 $312.2 5297.4 5269.7 555.5 5158.7 555.5 $206~6 S204.5 $111.0 50 $1.449 2026 5327.9 5312.2 $283.2 555.5 5108.4 555.5 $158.7 $214.8 5111.0 SO $1.405 2027 $344.2 5327.9 5297.4 555~5 $55~5 555.5 $108~4 5225.5 5111.0 $0 51,359 2028 5361.5 5344.2 $312.2 50.0 $55.5 555.5 5236.8 $55.5 50 $1,310 2029 5379.5 5361.5 $327.9 50.0 5248.6 $O~O $0 $1,317 2030 5398.5 $379.5 5344.2 5261.0 SOO 50 51,363 2031 $418.4 5398.5 5361.5 5274.1 SO~O 50 51,453 2032 $439.4 5418.4 5379.5 5287.8 50.0 50 $1,525 2033 $16.6 $461.3 $439.4 5398.5 5302.2 516~6 $0 51.601 2034 $76.9 $466.9 $16.6 5461.3 $418.4 5317~3 $93.5 $0 $1.664 2035 $76.9 $409.6 $76.9 $466.9 $439.4 $12.0 5333.2 5165.7 $0 $1.649 2036 $76.9 5349.4 576.9 $409.6 $16.6 $461.3 $55.5 5337~2 S225.8 50 $1,557 2037 $76~9 5286.1 $76.9 5349.4 576.9 $466.9 555.5 $295.8 5286.1 $0 51,398 2038 576.9 5219.7 $76.9 5286~ 1 576.9 $409.6 $55.5 5252~3 $286.1 $0 51,168 2039 $76.9 5150~0 S76~9 5219.7 $76.9 5349.4 555.5 5206.6 $286.1 50 $926 2040 $76.9 $76.9 $76.9 $150.0 $76.9 5286.1 $55.5 5158.7 $286.1 50 $672 2041 $O~O 576~9 $76.9 $76.9 $219~7 555.5 5108.4 $209.2 50 $405 2042 50.0 576.9 $150.0 $55.5 555.5 $132.4 50 5206 2043 $76.9 576.9 50.0 576~9 SO $77 2044 $0 SO SO Tolal $554.6 5554.6 $554.6 $400.5 5400.5 $400.5 $2,865.4 liabHily per FOfITIula at 12*31-08 I BWR PWR 5

5 554.59 400.53 NPV Funded Assets L1abilily Stalus f NOT Assets S660.60 5835.11 -5174~5O BFNI 5107.43 5136.23 -528.81 I

BFN2 5102~71 5129.74 -527.03 BFN3 $92.48 5117~68 -525.20 SONl $148.13 5185~52 -537.39 SON2 5140.95 $176.69 -535.74 Enclosure 1

Plant name: Brown's Ferry Nuclear Power Station, Unit 1 Year of Biennial: 2009 Termination of Operation: 2033 MWth 1986$ Eel Base Lx Lx Px Fx Ex Bx BWR 3458 $135,000,000 109.3 1.98 0.65 2.16 1.649 1.988 0.13 1.805 0.22 11.198 NRC Mimimum: $554,157,696 Amount of NRC Minimum/Site Licensee:  % Owned: SDecific: Amount in Trust Fund:

TVA 100.00% $554,157,696 $107,400,000 Step 4:

Earnings Credit:

Real Rate of Years Left ITotal Real Rate Trust Fund Balance: Return oer year in License of Return: Total Earnings: I

$107,400,000 5% 24 I 3.225099944 $346,375,734 I Total Earnings = Trust Fund balance x (1+RRR)"Years left in license Step 5:

Accumulation:

Value of Annuity per Real Rate of ear Return oer year Years of Annuity: Total Annuity:

$0 5% o $0 Step 6:

Decom Period:

Real Rate of Decom Total Real Rate Total Earnings for Total Earnings: Return oer year Period: of Return: Decom:

$346,375,734 5% 7 0.407100423 $70,504,854 Total Earnings for Decom = (112) x Total Earnings x [(1+RRR)"Decom period - I)

Total of Steps 4 - 6:

$416,880,588 Total = Total Earnings + Total Earnings for Decom Enclosure 2

Plant name: Brown's Ferry Nuclear Power Station, Unit 2 Year of Biennial: 2009 Termination of Operation: 2034 MWth 1986$ ECI Base Lx Lx Px Fx Ex Bx BWR 3458 $135,000,000 109.3 1.98 0.65 2.16 1.649 1.988 0.13 1.805 0.22 11.198 NRC Mimimum: $554,157,696 Amount of NRC Minimum/Site Licensee:  % Owned: Specific: Amount in Trust Fund:

TVA 100.00% $554,157,696 $ 102,700,000 Step 4:

Earnings Credit:

Trust Fund Balance:

Real Rate of Return per year in License I

Years Left Total Real Rate of Return: Total Earnings:

$102,700,000 5% 25 I 3.386354941 $347,778,652 Total Earnings = Trust Fund balance x (1+RRR)AYears left in license Step 5:

Accumulation:

Value of Annuity per Real Rate of ear Return per year Years of Annuity: Total Annuity:

$0 5% o $0 Step 6:

Oecom Period:

Real Rate of Decom Total Real Rate Total Earnings for Total Earnings: Return per year Period: of Return: Decom:

$347,778,652 5% 7 0.407100423 $70,790,418 Total Earnings for Oecom = (112) x Total Earnings x [(1+RRR)AOecom period - I]

Total of Steps 4 - 6:

$418,569,071 Total = Total Earnings + Total Earnings for Oecom

Plant name: Brown's Ferry Nuclear Power Station, Unit 3 Year of Biennial: 2009 Termination of Operation: 2036 MWth 1986$ ECI Base Lx Lx Px Fx Ex Bx BWR 3458 $135,000,000 109.3 1.98 0.65 2.16 1.649 1.988 0.13 1.805 0.22 11.198 NRC Mimimum: $554,157,696 Amount of NRC Minimum/Site Licensee:  % Owned: SDecific: Amount in Trust Fund:

TVA 100.00% $554,157,696 $92,500,000 Step 4:

Earnings Credit:

Trust Fund Balance:

Real Rate of Return per year in License I

Years Left Total Real Rate of Return: Total Earnings: I

$92,500,000 5% 27 I 3.733456322 $345,344,710 1 Total Earnings = Trust Fund balance x (1+RRR)"Years left in license Step 5:

Accumulation:

Value of Annuity per Real Rate of ear Return Der year Years of Annuity: Total Annuity:

$0 5% o $0 Step 6:

Decom Period:

Real Rate of Decom Total Real Rate Total Earnings for Total Earnings: Return per year Period: of Return: Decom:

$345,344,710 5% 7 0.407100423 $70,294,989 Total Earnings for Decom = (1/2) x Total Earnings x [(1+RRR)"Decom period -IJ Total of Steps 4 - 6:

$415,639,698 Total = Total Earnings + Total Earnings for Decom

Plant name: Sequoyah Nuclear Plant, Unit 1 Year of Biennial: 2009 Termination of Operation: 2020 MWth 1986$ Eel Base Lx Lx Px Fx Ex Bx PWR 3455 $105,000,000 109.3 1.98 0.65 2.16 1.649 1.988 0.13 1.791 0.22 9.872 NRC Mimimum: $400,195,878 Amount of NRC Minimum/Site Licensee:  % Owned: Soecific: Amount in Trust Fund:

TVA 100.00% $400,195,878 $148,100,000 Step 4:

I Earnings Credit:

Trust Fund Balance:

Real Rate of Return oer year in License I

Years Left Total Real Rate of Return: Total Earnings: I I $148,100,000 5% 11 I 1.710339358 $253,301,259 1 Total Earnings = Trust Fund balance x (l+RRR)"Years left in license Step 5:

Accumulation:

Value of Annuity per Real Rate of ear Return oer year Years of Annuity: Total Annuity:

$0 5% o $0 Step 6:

Oecom Period:

Real Rate of Decom Total Real Rate Total Earnings for Total Earnings: Return oer year Period: of Return: Decom:

$253,301,259 5% 7 0.407100423 $51,559,525 Total Earnings for Oecom = (112) x Total Earnings x [(l+RRR)"Oecom period - 11 Total of Steps 4 - 6:

$304,860,784 Total = Total Earnings + Total Earnings for Oecom

Plant name: Sequoyah Nuclear Plant, Unit 2 Year of Biennial: 2009 Termination of Operation: 2021 MWth 1986$ Eel Base Lx Lx Px Fx Ex Bx PWR 3455 $ 105,000,000 109.3 1.98 0.65 2.16 1.649 1.988 0.13 1.791 0.22 9.872 NRC Mimimum: $400,195,878 Amount of NRC Minimum/Site Licensee:  % Owned: Soecific: Amount in Trust Fund:

TVA 100.00% $400,195,878 $140,900,000 Step 4:

Earnings Credit:

Real Rate of Years Left ITotal Real Rate I Trust Fund Balance: Return per year in License of Return: Total Earnings: I I $140,900,000 5% 12 I 1.795856326 $253,036,156 I Total Earnings = Trust Fund balance x (1+RRR)"Years left in license Step 5:

Accumulation:

Value of Annuity per Real Rate of ear Return oer year Years of Annuity: Total Annuity:

$0 5% o $0 Step 6:

Decom Period:

Real Rate of Decom Total Real Rate Total Earnings for I Total Earnings: Return per year Period: of Return: Decom:

r $253,036,156 5% 7 0.407100423 $51,505,563 Total Earnings for Decom = (112) x Total Earnings x [(1+RRR)"Decom period - 11 Total of Steps 4 - 6:

$304,541,719 Total = Total Earnings + Total Earnings for Decom

Plant name: Watts Bar Nuclear Plant, Unit 1 Year of Biennial: 2009 Termination of Operation: 2036 MWth 1986$ Eel Base Lx Lx Px Fx Ex Bx PWR 3459 $105,000,000 109.3 1.98 0.65 2.16 1.649 1.988 0.13 1.791 0.22 9.872 NRC Mimimum: $400,195,878 Amount of NRC Minimum/Site Licensee:  % Owned: SDecific: Amount in Trust Fund:

TVA 100.00% $400,195,878 $68,900,000 Step 4:

Earnings Credit:

Real Rate of Years Left ITotal Real Rate Trust Fund Balance: Return per year in License of Return: Total Earnings: I

$68,900,000 5% 27 I 3.733456322 $257,235,141 I Total Earnings = Trust Fund balance x (1+RRR)"Years left in license Step 5:

Accumulation:

Value of Annuity per Real Rate of ear Return oer year Years of Annuity: Total Annuity:

$0 5% o $0 Step 6:

Decom Period:

Real Rate of Decom Total Real Rate Total Earnings for Total Earnings: Return oer year Period: of Return: Decom:

$257,235,141 5% 7 0.407100423 $52,360,267 Total Earnings for Decom = (112) x Total Earnings x [(1+RRR)" Decom period - 1J Total of Steps 4 - 6:

$309,595,408 Total = Total Earnings + Total Earnings for Decom

MEMORANDUM TO: Thomas H. Boyce, Chief Plant Licensing Branch 11-2 Division of Operating Reactor Licensing FROM: Eva A. Brown, Senior Project Manager IRA!

Plant Licensing Branch 11-2 Division of Operating Reactor Licensing

SUBJECT:

BROWNS FERRY NUCLEAR PLANT, UNITS 1,2, AND 3; SEQUOYAH NUCLEAR PLANT, UNITS 1 AND 2; WATTS BAR PLANT, UNIT 1,

SUMMARY

OF CONFERENCE CALLS WITH THE TENNESSEE VALLEY AUTHORITY REGARDING DECOMMISSION FUNDING ASSURANCE (TAC NOS. ME0491, ME0492, ME0493, ME0571, ME0572, AND ME0587)

On June 9 and 30, 2009, staff from the Financial, Policy, and Rulemaking Branch, the Office of General Counsel, the Office of New Reactors and the Plant Licensing Branch 11-2 held conference calls with the Tennessee Valley Authority to discuss the amount of the decommissioning funding assurance shortfall calculated by the NRC staff for the subject units, to clarify the methodology used by the NRC staff to determine decommissioning funding assurance levels, and to establish a schedule for the submittal of a plan to address the shortfall.

To facilitate the discussion the Tennessee Valley Authority (TVA) provided a spreadsheet on June 9 (Enclosure 1) and the NRC staff provided information on June 30 (Enclosure 2).

Docket Nos. 50-259, 50-260, 50- 296 50-327, 50-328, and 50-390

Enclosures:

1. TVA Spreadsheet

2. NRC Information Printouts Distribution:

NONPUBLIC PDII-2 R/F RidsNrrLABClayton (Hard Copy)

RidsNrrPMBrownsferry RidsNrrPMSequoyah RidsNrrPMWattsBar1 RidsNrrDoriLP-WB RidsNrrDprPfpb RidsNrrDorlLpll-2 ADAMS Accession Nos.: Package: ML091940476 Memo* ML091940389 Enclosure1* ML091940463 OFFICE LPLlI-2/PM LP-WB/LA LPLlI-2/BC NAME EBrown BClavton TBoyce DATE 09/04/09 09/03/09 09/04/09 OFFICIAL RECORD COpy