ML092160411
| ML092160411 | |
| Person / Time | |
|---|---|
| Site: | Browns Ferry, Watts Bar, Sequoyah  |
| Issue date: | 07/30/2009 |
| From: | Krich R Tennessee Valley Authority |
| To: | Document Control Desk, Office of Nuclear Reactor Regulation |
| References | |
| Download: ML092160411 (10) | |
Text
- 1 Tennessee Valley Authority, 1101 Market Street, Chattanooga, Tennessee 37402-2801 July 30, 2009 10 CFR 50.4 U. S. Nuclear Regulatory Commission ATTN: Document Control Desk Washington, D.C. 20555-0001 Browns Ferry Nuclear Plant, Units 1, 2, and 3 Facility Operating License Nos. DPR-33, DPR-52, DPR-68 NRC Docket Nos. 50-259, 50-260, 50-296 Sequoyah Nuclear Plant, Units 1 and 2 Facility Operating License Nos. DPR-77, DPR-79 NRC Docket Nos. 50-327, 50-328 Watts Bar Nuclear Plant, Unit 1 Facility Operating License No. NPF-90 NRC Docket No. 50-390
Subject:
Decommissioning.Funding Assurance
References:
- 1. Letter from NRC to TVA dated June18, 2009, "Tennessee Valley Authority's Status of Decommissioning Assurance for Browns Ferry Nuclear Plant, Unit 1 (TAC No. ME0491)"
- 2. Letter from NRC to TVA dated June 18, 2009, "Tennessee Valley Authority's Status of Decommissioning Assurance for Browns Ferry Nuclear Plant, Unit 2 (TAC No. ME0492)"
- 3. Letter from NRC to TVA dated June 18, 2009, "Tennessee Valley Authority's Status of Decommissioning Assurance for Browns Ferry Nuclear Plant, Unit 3 (TAC No. ME0493)"
- 4. Letter from NRC to TVA dated June 18, 2009, "Tennessee Valley Authority's Status of Decommissioning Assurance for Sequoyah Nuclear Plant, Unit 1 (TAC No. ME0571)"
- 5. Letter from NRC to TVA dated June 18, 2009, "Tennessee Valley Authority's Status of Decommissioning Assurance for Sequoyah Nuclear Plant, Unit 2 (TAC No. ME0572)"
Printed on recycled paper
U. S. Nuclear Regulatory Commission Page 2 July 30, 2009
- 6. Letter from NRC to TVA dated June 18, 2009, "Tennessee Valley Authority's Status of Decommissioning Assurance for Watts Bar Nuclear Plant, Unit 1 (TAC No. ME0587)"
- 7. Letter from NRC to TVA dated July 14, 2009, "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 Decommissioning Funding Assurance (TAC Nos., ME0491, ME0492, ME0493, ME0571, ME0572, and ME0587)
On June 5, 9, and 30, 2009, teleconferences were conducted among representatives of the Tennessee Valley Authority (TVA) and NRC to discuss current and future decommissioning funding levels for each of TVA's six operating nuclear units as described in NRC letters dated June 18, 2009 (References 1-6). NRC's letter of July 14, 2009 (Reference 7) summarized the results of these calls.
In these conference calls, NRC provided the bases for computing the NRC minimum funding amounts for decommissioning each of TVA's six operating nuclear units pursuant to NRC's regulations, the amount of funds in each unit's trust fund as of December 31, 2008, and the projected earnings associated with each fund up to the time of cessation of operation, including one half of the earnings through 7 years of decommissioning. The difference between the minimum required amount and the projected total amount of decommissioning funding assurance available was determined.
TVA pointed out that the terms of years left in each operating license did not always reflect the actual date of license expiration as the end date for the earnings allowed during plant operation. TVA's method of computation took into account the actual date of each unit's operating license termination which, in most cases, added an additional fraction of years left in each plant's licensed term of operation.
Consistent with the format of the tables discussed on June 30 with the NRC, TVA has enclosed tables for each of TVA's six operating units which set forth revised amounts for each TVA operating unit.
As we committed in our conference call and as reflected in the July 14, 2009 NRC letter, TVA's plan to address the decommissioning funding assurance for each operating unit in accordance with NRC's decommissioning funding assurance regulations is as follows. Regulations allow electric utilities such as TVA to provide financial assurance through one or more funding mechanisms including an external sinking fund with periodic future contributions, a surety method which may include a letter or line of credit, or any other mechanism, or combination of mechanisms, which provides adequate assurance of decommissioning funding. TVA's plan also includes consideration of the option of performing site-specific estimates on some or all of its
U.S. Nuclear Regulatory Commission Page 3 July 30, 2009 nuclear units which would allow it to take credit for projected earnings through the decommissioning period of safe storage.
TVA's plan is to recommend one or more of the above options to its Board of Directors for consideration at its next meeting which is currently scheduled to take place on August 20, 2009. As indicated in NRC's July 14, 2009 letter, contingent upon the decision of its Board of Directors, TVA expects to be able to inform the NRC of the details of the Board-approved plan to address the decommissioning funding assurance, as described in the enclosed tables, for each of its operating units by September 4, 2009.
Please direct any questions concerning this matter to Fred Mashburn at (423) 751-8817.
Respectfully, R. M. Krich1 Vice President Nuclear Licensing
Enclosure:
Funding Levels and Obligations for Operating Units cc: See Page 4
U.S. Nuclear Regulatory Commission Page 4 July 30, 2009 Enclosure cc (Enclosure):
Regional Administrator - NRC Region II Senior Resident Inspector - Browns Ferry Senior Resident Inspector - Sequoyah Senior Resident Inspector - Watts Bar
Enclosure Funding Levels and Obligations for Operating Units Plant Name:
Year of Biennial Termination of Operation Brown's Ferry Nuclear Power Station, Unit 1 2009 - As of 12131/2008 12/2012033 I
MWth I
1986$
I EC I
BaseLx I
I Lx Px Fx I
I Ex I
I 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 Minimum
$554,157,696
- Licensee
% Owned Amount of NRC Minimum Amount in Trust TVA 100%
$554,157,696
$107,425,547 Earnings Credit Real Rate of Years Left Total Real Rate Trust Balance Return per Year in License of Return Total Earnings
$107,425,547 5%
24.9699 3.3814
$363,246,525 Total Earnings = Trust Balance * ((1+RRR)^Years Left in License)
Decom Period Real Rate of Decom.
Total Earnings Total Earnings Return per Year Period for Decom.
$363,246,525 5%
7
$73,938,907 I
5Total
$437,185,431 Total Earnings for Decom. = (.50)
- Total Earnings * (((1+RRR)^Decom. Period) - 1)
Total = Total Earnings + Total Earnings for Decom.
Difference at Decommissioning = Total - NRC Minimum Current Difference = Current Fund Value - Current NRC Minimum Funding for Prepayment Option (Using Years Left in License at 5% Real Rate of Return)
Difference at Decommissioning Current Difference
($116,972,265)
($28,742,516) 1
Enclosure Funding Levels and Obligations for Operating Units Plant Name:
Year of Biennial Termination of Operation Brown's Ferry Nuclear Power Station, Unit 2 2009 - As of 12/31/2008 06/2812034 I
MWth I
1986$
ECI BaseLx l
I Lx I
PxI I
Ex I
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 Minimum
$554,157,696 Licensee
% Owned Amount of NRC Minimum Amount in Trust TVA 100%
$554,157,696
$102,713,1511 Earnings Credit Real Rate of Years Left Total Real Rate Trust Balance Return per Year in License of Return Total Earnings
$102,713,151 5%
25.4904 1
3.4684
$356,245,996 Total Earnings = Trust Balance * ((1+RRR)^Years Left in License)
Decom Period Real Rate of Decom.
Total Earnings Total Earnings Return per Year Period for Decom.
$356,245,996 5%
7
$72,513,948 Total
$428,759,944 Total Earnings for Decom. = (.50)
- Total Earnings * (((1+RRR)ADecom. Period) - 1)
Total = Total Earnings + Total Earnings for Decom.
Difference at Decommissioning = Total - NRC Minimum Current Difference = Current Fund Value - Current NRC Minimum Funding for Prepayment Option (Using Years Left in License at 5% Real Rate of Return)
Difference at Decommissioning Current Difference
($125,397,752)
($30,040,115) 2
Enclosure Funding Levels and Obligations for Operating Units Plant Name:
Year of Biennial Termination of Operation Brown's Ferry Nuclear Power Station, Unit 3 2009 - As of 1213112008 07/02/2036 I
MWth i
1986$
EC I
BaseLx I
I Lx Px Fx I
I Ex I
I Bx BWR 3458
$135,000,000 109.3 1.98 0.65 2.16 1.649 1.988 0.13 1 1.805 1
0.22 1 11.198I NRC Minimum
$554,157,696 Licensee
% Owned Amount of NRC Minimum Amount in Trust TVA 100%
$554,157,696
$92,484,500 Earnings Credit Real Rate of Years Left Total Real Rate Trust Balance Return per Year in License of Return Total Earnings
$92,484,500 1
5%
27.5014 1
3.8259
$353,837,374 Total Earnings =.Trust Balance * ((l+RRR)^Years Left in License)
Decom Period Real Rate of Decom.
Total Earnings Total Earnings Return per Year Period for Decom.
$353,837,374 5%
1 7
$72,023,672 I
1Total Total Earnings for Decom. = (.50)
- Total Earnings * (((1 +RRR)^Decom. Period) - 1)
Total = Total Earnings + Total Earnings for Decom.
Difference at Decommissioning = Total - NRC Minimum Current Difference = Current Fund Value - Current NRC Minimum Funding for for Prepayment Option (Using Years Left in License at 5% Real Rate of Return)
Difference at Decommissioning Current Difference
($128,296,650)
($27,862,261) 3
Enclosure Funding Levels and Obligations for Operating Units Plant Name:
Year of Biennial Termination of Operation Sequoyah Nuclear Plant, Unit 1 2009 - As of 12/3112008 0911712020 I
MWth I
1986$
I ECI I
Base Lx I
I Lx I
Px I
Fx I
I Ex I
I Bx H I
PWR I
3455
$105,000,000 I
109.3 I
1.98 I
0.65 1
2.16 I
1.649 1
1.988 I 0.13 I 1.791 1
0.22 NRC Minimum
$400,195,878 Licensee
% Owned Amount of NRC Minimum Amount in Trust TVA 100%
$400,195,878
$148,132,079 Earnings Credit Real Rate of Years Left Total Real Rate Trust Balance Return per Year in License of Return Total Earnings
$148,132,079 1
5%
1 11.7123 1
1.7708
$262,316226 Total Earnings = Trust Balance * ((l+RRR)^Years Left in License)
Decom Period Real Rate of Decom.
Total Earnings Total Earnings Return per Year Period for Decom.
$262,316,226 5%
7
$53,394,523
,Total Total Earnings for Decom. = (.50)
- Total Earnings * (((l+RRR)ADecom. Period) - 1)
Total = Total Earnings + Total Earnings for Decom.
Difference at Decommissioning = Total - NRC Minimum Current Difference = Current Fund Value - Current NRC Minimum Funding for Prepayment Option (Using Years Left in License at 5% Real Rate of Return)
Difference at Decommissioning Current Difference
($84,485,129)
($39,640,582) 4
Enclosure Funding Levels and Obligations for Operating Units Plant Name:
Year of Biennial Termination of Operation Sequoyah Nuclear Plant, Unit 2 2009 - As of 12/31/2008 09/15/2021 MWth I
1986$
EC I
Base~x I
Lx l
Pxx I
I Ex I
I 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 Minimum
$400,195,878 Licensee
% Owned I Amount of NRC Minimum Amount in Trust TVA 100%
$400,195,878
$140,949,718 Earnings Credit Real Rate of Years Left Total Real Rate Trust Balance Return per Year in License of Return Total Earnings
$140,949,718 5%
12.7068 1.8589
$262,007,330 Total Earnings = Trust Balance * ((1+RRR)^Years Left in License)
Decom Period Real Rate of Decom.
Total Earnings Total Earnings Return per Year Period for Decom.
$262,007,330 5%
7
$53,331,647
,Total
$315,338,977 Total Earnings for Decom. = (.50)
- Total Earnings * (((l+RRR)ADecom. Period) - 1)
Total = Total Earnings + Total Earnings for Decom.
Differnce at Decommissioning = Total - NRC Minimum Current Difference = Current Fund Value - Current NRC Minimum Funding for Prepayment Option (Using Years Left in License at 5% Real Rate of Return)
Difference at Decommissioning Current Difference
($84,856,901)
($37,929,203) 5
Enclosure Funding Levels and Obligations for Operating Units Plant Name:
Year of Biennial Termination of Operation Watts Bar Nuclear Plant, Unit 1 2009 - As of 12/31/2008 11/09/2035 I
MWth l
1986$
EC I
BaseLx I
I Lx Px Fx I
I Ex I
I 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 Minimum
$400,195,878 Licensee
% Owned Amount of NRC Minimum Amount in Trust TVA 100%
$400,195,878
$68,898,577 Earnings Credit Real Rate of Years Left Total Real Rate Trust Balance Return per Year in License of Return Total Earnings
$68,898,577 1
5%
26.8575 1
3.7076
$255,448,042 Total Earnings = Trust Balance * ((l+RRR)^Years Left in License)
Decom Period Real Rate of Decom.
Total Earnings1 Total Earnings Return per Year Period for Decom.
$255,448,042 5%
7
$51,996,503 Total
$307,444,544 Total Earnings for Decom. = (.50)
- Total Earnings * (((l+RRR)ADecom. Period) - 1)
Total = Total Earnings + Total Earnings for Decom.
Difference at Decommissioning Current Difference
($92,751,334)
($20,785,651)
Difference at Decommissioning = Total - NRC Minimum Current Difference = Current Fund Value - Current NRC Minimum Funding for Prepayment Option (Using Years Left in License at 5% Real Rate of Return) 6