L-2009-172, And Point Beach Nuclear Plant, Units 1 and 2 - Decommissioning Funding Status and Financial Assurance Plan
| ML092110118 | |
| Person / Time | |
|---|---|
| Site: | Point Beach, Duane Arnold  |
| Issue date: | 07/27/2009 |
| From: | Nazar M Florida Power & Light Co |
| To: | Document Control Desk, Office of Nuclear Reactor Regulation |
| References | |
| L-2009-172 | |
| Download: ML092110118 (9) | |
Text
Florida Power & Light Company, 700 Universe Boulevard, P.O. Box 14000, Juno Beach, FL 33408-0420 0
JUL 2 7 2009 FPL L-2009-172 10 CFR 50.4 10 CFR 50.75 U.S. Nuclear Regulatory Commission Attn: Document Control Desk Washington, DC 20555 Re:
NextEra Energy Duane Arnold, LLC Duane Arnold Energy Center Docket No. 50-331 NextEra Energy Point Beach, LLC Point Beach Nuclear Plant, Units 1 and 2 Docket Nos. 50-266, 50-301
Subject:
Decommissioning Funding Status and Financial Assurance Plan The purpose of this letter is (1) for the above-referenced NextEra Energy project companies to provide information to the Nuclear Regulatory Commission (NRC) that was requested during a telephone conference on June 30, 2009, regarding the decommissioning funding status for NextEra Energy's ownership interests in the Duane Arnold Energy Center (DAEC) and the Point Beach Nuclear Plant, Units 1 and 2 (PBNP); and (2) to provide the decommissioning funding status and financial assurance plan for Central Iowa Power Cooperative's (CIPCO) interests in DAEC, also as requested by NRC on the June 30, 2009 telephone conference.
A.
NextERA Interests in DAEC and PBNP
- 1.
Decommissioning Funding Status for NextEra Interests in DAEC and PBNP As of June 30, 2009, the following is the decommissioning funding status for the subject NextEra Energy nuclear plants:1 DAEC (70% ownership interest)
Present value of NRC Minimum Calculation pursuant to 10 CFR 50.75:
$299,948,183 Trust Balance as of 6/30/09:
$167,502,632 Funding Difference:
($132,445,551) in calculating the funding status for the NextEra Energy nuclear plants, NextEra has used the same methodology used in (then) FPL Energy's license transfer applications for DAEC (2005) and PBNP (2007).
an FPL Group company
L-2009-172 Page 2 PBNP Unit 1 (100% ownership interest)
Present value of NRC Minimum Calculation pursuant to 10 CFR 50.75:
$209,310,315 Trust Balance as of 6/30/09:
$196,376,577 Funding Difference:
($12,933,739)
PBNP Unit 2 (100% ownership interest)
Present value of NRC Minimum Calculation pursuant to 10 CFR 50.75:
$199,497,823 Trust Balance as of 6/30/09:
$185,032,113 Funding Difference:
($14,465,710)
- 2.
Proposed Decommissioning Financial Assurance Plans for NextEra Interests in DAEC and PBNP DAEC: In order to address the funding difference for DAEC, NextEra Energy Duane Arnold will cause FPL Group Capital Inc to amend the existing decommissioning funding parent guaranty for $93 million to increase the value of that parent guaranty to $132.5 million, representing the difference between the adjusted value of the decommissioning funds on hand and NextEra Energy Duane Arnold's share of the amount required by NRC regulations. The revised parent guaranty will be in compliance with the NRC's financial test for parent guarantees, in accordance with 10 CFR § 50.75(e)(1)(iii)(B) and 10 CFR Part 30, App. A. Absent a further sale or transfer requiring NRC approval, this parent guaranty will not terminate until DAEC permanently ceases commercial operation or unless terminated in accordance with the cancellation provisions specified in NRC regulations, and may not be modified or amended without 30 days prior written notice to the NRC. NextEra Energy Duane Arnold will recalculate the required decommissioning funding assurance level each year, as required by 10 CFR 50.75(b)(2), and if necessary each year will obtain an appropriate adjustment in the amount of the parent guarantee or otherwise provide for decommissioning funding assurance in the amount required.
PBNP Unit 1: In order to address the funding difference for PBNP Unit 1, NextEra Energy Point Beach will cause FPL Group Capital Inc to issue a decommissioning funding parent guaranty for
$13 million, representing the difference between the adjusted value of the decommissioning funds on hand and the NRC formula minimum amount required by NRC regulations.
This parent guaranty will be in compliance with the NRC's financial test for parent guarantees, in accordance with 10 CFR § 50.75(e)(1)(iii)(B) and 10 CFR Part 30, App. A. Absent a further sale or transfer requiring NRC approval, this parent guaranty will not terminate until PBNP Unit 1 permanently ceases commercial operation or unless terminated in accordance with the cancellation provisions specified in NRC regulations, and may not be modified or amended without 30 days prior written notice to the NRC. NextEra Energy Point Beach will recalculate the required decommissioning funding assurance level for PBNP Unit 1 each year, as required by 10 CFR 50.75(b)(2), and if necessary each year will obtain an appropriate adjustment in the amount of the parent guarantee or otherwise provide for decommissioning funding assurance in the amountsrequired.
L-2009-172 Page 3 PBNP Unit 2: In order to address the funding difference for PBNP Unit 2, NextEra Energy Point Beach will cause FPL Group Capital Inc to issue a decommissioning funding parent guaranty for
$14.5 million, representing the difference between the adjusted value of the decommissioning funds on hand and the NRC formula minimum amount required by NRC regulations.
This parent guaranty will be in compliance with the NRC's financial test for parent guarantees, in accordance with 10 CFR § 50.75(e)(1)(iii)(B) and 10 CFR Part 30, App. A. Absent a further sale or transfer requiring NRC approval, this parent guaranty will not terminate until PBNP Unit 2 permanently ceases commercial operation or unless terminated in accordance with the cancellation provisions specified in NRC regulations, and may not be modified or amended without 30 days prior written notice to the NRC. NextEra Energy Point Beach will recalculate the required decommissioning funding assurance level for Point Beach Unit 2 each year, as required by 10 CFR 50.75(b)(2), and if necessary each year will obtain an appropriate adjustment in the amount of the parent guarantee or otherwise provide for decommissioning funding assurance in the amount required.
Timing: NextEra Energy plans to implement the proposed decommissioning financial assurance plan for DAEC and PBNP Units 1 and 2 by no later than December 31, 2009.
The detailed calculations supporting NextEra's conclusions regarding the NRC formula amounts and the adjusted trust fund balances are set forth in the Enclosures to this letter (Enclosure 1 for DAEC; Enclosure 2 for PBNP Unit 1; and Enclosure 3 for PBNP Unit 2).
B.
CIPCO Interests in DAEC
- 1.
Decommissioning Funding Status for CIPCO Interests in DAEC As of June 30, 2009, the following is the decommissioning funding status for CIPCO's interests in DAEC:
DAEC (20% ownership interest)
NRC Minimum Calculation (10 CFR 50.75): $100,709,303 Trust Balance adjusted per 10 CFR 50.75: $101,632,438 (revised -see Enclosure 4)
Funding Difference:
$923,135
- 2.
Proposed Decommissioning Financial Assurance Plan for CIPCO Interests in DAEC In order to ensure decommissioning funding assurance for CIPCO's 20% ownership interest in DAEC, CIPCO has changed its decommissioning trust contribution schedule to ensure that CIPCO's decommissioning obligations are met at the time that DAEC is permanently shut down.
The detailed calculations supporting CIPCO's conclusions regarding the NRC formula amounts and the adjusted trust fund balances are set forth in Enclosure 4 to this letter. CIPCO's decommissioning funding assurance is immediately effective.
L-2009-172 Page 4 Should you have any questions concerning this letter, please contact Mitchell Ross, Vice President and General Counsel - Nuclear at 561-691-7126, or Lisa Fuca, Nuclear Business Operations, at 561-691-7604.
Sincerely yours, Mano Nazar Senior Vice Presid Chief Nuclear Offi(
Nuclear and cc:
Robert Norcross - Public Service Commission of Wisconsin Enclosures
L-2009-172 Page 1 of 1 Decommissioning Funding Status Duane Arnold Energy Center NextEra 70% Ownership Interest NRC Minimum: 70% Share Assumptions:
Real Rate of Return License Expiration Years Until Decommissioning Decom Period Years Years Assumed for Present Value Calculation (includes 50% Decom Period)
Trust Balance as of 6/30/09 Calculation of NRC Minimum and Fundinq Assurance:
Next Era Duane Arnold's 70% Share of DAEC Years Until Decommissioning including 50% Decom Period Years Real Rate of Return Present Value of NRC Minimum for Next Era 70% Share of DAEC Balance as of 6130109 Amount of Surplus (Deficit) Covered by Corporate Guarantee 352,482,561 2%
2/21/2014 4.65 7
8.15 167,502,632 352,482,561 8.15 2%
299,948,183 167,502,632 (132,445,551)
L-2009-172 Page 1 of 1 Decommissioning Funding Status Point Beach Nuclear Plant, Unit 1 NextEra 100% Ownership Interest NRC Minimum 341,899,272 Assumptions:
Real Rate of Return License Expiration Years Until Decommissioning Post Shut Down Years Years Assumed for Present Value Calculation (includes 50% Decom Period)
Trust Balance as of 6/30/09 Calculation of NRC Minimum and Funding Assurance:
Point Beach NRC Minimum Real Rate of Return Present Value of NRC Minimum Balance as of 6130109 Amount of Surplus (Deficit) Covered by Corporate Guarantee Unit I 2%
10/5/2030 21.3 7
24.8 196,376,577 341,899,272 2%
209,310,315 196,376,577 (12,933,739)
L-2009-172 Page 1 of 1 Decommissioning Funding Status Point Beach Nuclear Plant, Unit 2 NextEra 100% Ownership Interest NRC Minimum 341,899,272 Assumptions:
Real Rate of Return License Expiration Years Until Decommissioning Post Shut Down Years Years Assumed for Present Value Calculation (includes 50% Decom Period)
Trust Balance as of 6/30/09 Calculation of NRC Minimumand Funding Assurance:
Point Beach NRC Minimum Real Rate of Return Present Value of NRC Minimum Balance as of 6/30109 Amount of Surplus (Deficit) Covered by Corporate Guarantee Unit 2 2%
3/8/2033 23.7 7
27.2 185,032,113 341,899,272 2%
199,497,823 185,032,113 (14,465,710)
.- Enclosure 4 Page 1 of 2 Decommissioning Funding Status Duane Arnold Energy Center CIPCO 20% Share NRC Minimum: 20% Share Assumptions:
Real Rate of Return License Expiration Years Until Decommissioning Decom Period Years Trust Balance as of 6/30/09 100,709,303 4%
2/21/2014 4.65 7
27,493,944 Future Value:
Trust Fund Balance as of 2/21/2014 Accumulated Annuity as of 2/21/2014 Total Decomm Funds as of 2/21/2014 Decom Period Earnings Total NRC Minimum Over 32,994,263 54,773,813 87,768,076 13,864,362 101,632,438 100,709,303 923,135
..-Enclosure 4
- ae2 of 2 Central Iowa Power Cooperative Annuity Calculation Termination of Operations: 2/21/2014 Real Rate Total Year Annuity of Return Accumulation 2009 500,000 4%
600,027.83 2010 1,000,000 4%
1,176,525.15 2011 15,000,000 4%
$ 16,969,112.76 2012 15,000,000 4%
$ 16,316,454.57 2013 15,000,000 4%
$ 15,688,898.63 2014 4,000,000 4%
4,022,794.52
$ 54,773,813.46