ML100910135

Independent Spent Fuel (Isfsi), Decommissioning Funding Status Reports

ML100910135
Person / Time
Site:	Prairie Island
Issue date:	03/31/2010
From:	Salamon G Northern States Power Co, Xcel Energy
To:	Document Control Desk, Office of Nuclear Material Safety and Safeguards, Office of Nuclear Reactor Regulation
References
Download: ML100910135 (9)

Text

414 Nicollet Mall - MP4

' Xcel EnergyB Minneapolis, MN 55401 March 31, 2010 L-XE-10-005 IOCFR 50.75(f)(I)

U.S. Nuclear Regulatory Commission ATTN: Document Control Desk Washington, DC 20555-0001 Prairie Island Nuclear Generating Plant Prairie Island Independent Spent Fuel Units 1 and 2 Storage Installation Dockets 50-282 and 50-306 Docket 72-10 License Nos. DPR-42 and DPR-60 Materials License No. SNM-2506 Decommissioning Funding Status Reports The enclosed decommissioning funding status reports are being submitted in accordance with 10 CFR 50.75, "Reporting and Recordkeeping for Decommissioning Planning," Paragraph (f)(l), for the aforementioned plants. As holder of the plant operating licenses, Northern States Power Company, a Minnesota corporation (NSPM) d/b/a Xcel Energy is submitting these reports on behalf of the plant owner identified in each respective report. The financial information presented herein is current as of December 31,2009.

Enclosure 1 provides the PlNGP Unit 1 Decommissioning Funding Status Report.

Enclosure 2 provides the PlNGP Unit 2 Decommissioning Funding Status Report.

Enclosure 3, the Xcel Energy Breakdown of Annual Contributions and Trust Fund Balance, provides the radiological decommissioning, spent fuel management, and site restoration costs for PINGP Units 1 and 2 in accordance with the guidance of Regulatory Issue Summary (RIS) 2001-07, Rev. 1.

If there are any questions or if additional information is needed, please contact Mr. Dale Vincent, P.E., at 651-388-1121.

Summarv of Commitments This letter contains no new commitments and no revisions to existing commitments.

Gabor Salamon Director, Nuclear Licensing and Emergency Preparedness Northern States Power Company - Minnesota

Document Control Desk Page 2 Enclosures (3) cc: Administrator, Region Ill, USNRC Project Manager, PINGP, USNRC Resident Inspector, PINGP, USNRC

ENCLOSURE I Prairie Island Nuclear Generating Plant (PINGP), Unit 1 Docket No. 50-282 License No. DPR-42 Decommissioning Funding Status Report

1. The minimum decommissioning fund estimate, pursuant to 10 CFR 50.75(b) and (c), in 2009 dollars.

2. The amount accumulated at the end of the External calendar year preceding the date of the report. Qualified $314,645,565 External Escrow $44,985,801 (Radiological only. Previous reports presented Internal $826,742 total Radiological, Spent Fuel, and Site Restoration Costs. For breakdown of all components see Enclosure 3) Total $360,458,108

3. A schedule of the annual amounts remaining to Annual Years to be collected through rates from customers. Annuity Collect The external funding amount is on a $0 3.8 yrs prescribed schedule per North Dakota Public Utility Commission (NDPUC) Docket# PU 776 effective December 19, 2008.

Page 1 of 2 Funding Status Unit 1

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

Plant Owner (% Ownership) Rate of Escalation Real Rate of Earnings Factor Return (Nominal (Inflation) (Projected)

Rate Of Return)

Xcel Energy (100%) - PlNGP 6.30% 2.89%

Unit 1 Basis for Allowance:

Xcel Energy files a triennial decommissioning study with the Minnesota Public Utilities Commission (MPUC) for approval. A portion of the study is dedicated to an internal analysis of inflation factors surrounding the various components necessary to perform the decommissioning function. The analysis utilizes long-range inflation projections published by Global Insight, the Consumer Price Index, and the Chained Price Index for Gross Domestic Product, as well as other forecasted data. Note: These rates apply to external funds only. The rate of earnings and escalation factors were approved by the MPUC in the most recent triennial decommissioning study completed by the company, MPUC Docket# E-002lM-08-1201, effective June 12, 2009.

5. Any contracts upon which the licensee is relying pursuant to 10 CFR 50.75(e) (1) (v). None

6. Any modifications to a licensee's method of providing financial assurance occurring since the last submitted None report.

7. Any material changes to trust agreements. None Page 2 of 2

ENCLOSURE 2 Prairie Island Nuclear Generating Plant (PINGP), Unit 2 Docket 50-306 License DPR-60 Decommissioning Funding Status Report

1. The minimum decommissioning fund estimate, pursuant to 10 CFR 50.75(b) and (c), in 2009 dollars.

2. The amount accumulated at the end of the External calendar year preceding the date of the report. Qualified $327,814,306 External Escrow $56,118,044 (Radiological only. Previous reports presented Internal $1,107,303 total Radiological, Spent Fuel, and Site Restoration Costs. For breakdown of all components see Enclosure 3) Total $385,039,653

3. A schedule of the annual amounts remaining to be Annual Years to collected through rates from customers. Annuity Collect The external funding amount is on a prescribed schedule per North Dakota Public $0 4.8 yrs Utilities Commission (NDPUC) Docket# PU-07-776 effective December 19, 2008.

Page 1 of 2 Funding Status Unit 2 Assumptions used regarding escalation in decommissioning costs, rate of earnings on decommissioning funds and rates of other factors used in funding projections.

Plant Owner ( O h Ownership) Rate of Escalation Real Rate of Earnings Factor Return (Nominal (Inflation) (Projected)

Rate Of Return)

Xcel Energy ( I 00%) - PlNGP 6.30% 2.89% 3.41%

Unit 2 Basis for Allowance:

Xcel Energy files a triennial decommissioning study with the Minnesota Public Utilities Commission (MPUC) for approval. A portion of the study is dedicated to an internal analysis of inflation factors surrounding the various components necessary to perform the decommissioning function. The analysis utilizes long-range inflation projections published by Global Insight, the Consumer Price Index, and the Chained Price Index for Gross Domestic Product, as well as other forecasted data. Note: These rates apply to external funds only. The rate of earnings and escalation factors were approved by the MPUC in the most recent triennial decommissioning study completed by the company, MPUC Docket# E-002lM-08-1201, effective June 12, 2009.

Any contracts upon which the licensee is relying pursuant to 10 CFR 50.75(e) (1) (v). None Any modifications to a licensee's method of providing financial assurance occurring since the last submitted None report.

Any material changes to trust agreements. None Page 2 of 2

ENCLOSURE 3 Prairie Island Nuclear Generating Plant (PINGP) Units 1 and 2 Dockets 50-282 and 50-306 License Nos. DPR-42 and DPRSO Xcel Energy Breakdown of Annual Contributions and Trust Fund Balance The following table is the radiological decommissioning, spent fuel management, and site restoration segmentation of the trust fund balances for PINGP Units 1 and 2. The internal fund is being transferred to the external fund on a prescribed schedule.

The external escrow fund is an accessible decommissioning fund. In the event that it is determined by the prevailing state commissions that the balance of the external qualified fund is sufficient to cover all decommissioning costs (radiological, spent fuel, and site restoration), the balance of the external escrow fund would be refunded to customers through rates. In the event this determination cannot be made before decommissioning activities begin at a site, the amount in the external escrow fund would be used to cover any shortfalls which may exist. At this time, the balance of the external qualified fund is not sufficient by itself to cover all decommissioning costs for PINGP Unit 1 or Unit 2. There are no current plans to initiate a refund of the external escrow funds to customers.

Trust Fund Balances Prairie Island Nuclear Generating Plant Unit 1 External Qualified Fund Radiological Decommissioning Spent Fuel Management Site Restoration Total External Escrow Fund Radiological Decommissioning Spent Fuel Management Site Restoration Total Internal Radiological Decommissioning Spent Fuel Management Site Restoration Total Total - All Factors Radiological Decommissioning Page 1 of 3 Contributions and Fund Balances Spent Fuel Management Site Restoration Total Prairie Island Nuclear Generating Plant Unit 2 External Qualified Fund Radiological Decommissioning Spent Fuel Management Site Restoration Total External Escrow Fund Radiological Decommissioning Spent Fuel Management Site Restoration Total lnternal Radiological Decommissioning Spent Fuel Management Site Restoration Total Total - All Factors Radiological Decommissioning Spent Fuel Management Site Restoration Total Total Contributions External Qualified Fund Radiological Decommissioning Spent Fuel Management Site Restoration Total External Escrow Fund Radiological Decommissioning Spent Fuel Management Site Restoration Total Internal Radiological Decommissioning Page 2 of 3 Contributions and Fund Balances Spent Fuel Management Site Restoration Total 2,520,290 2,128,971 Total - All Factors Radiological Decommissioning Spent Fuel Management Site Restoration 17,566,362 20,670,702 Total 696,190,016 819,624,129 The following annual contributions table shows the approximate accrual segmentation for radiological decommissioning, spent fuel management, and site restoration for PlNGP Units 1 and 2. The internal fund is being transferred to the external fund on a prescribed schedule.

Annual Contributions PlNGP Unit 1 Radiological Decommissioning Spent Fuel Management Site Restoration Total PlNGP Unit 2 Radiological Decommissioning Spent Fuel Management Site Restoration Total Total Contributions Radiological Decommissioning Spent Fuel Management Site Restoration Total Page 3 of 3