ML102320209

Response to Request for Clarification for License Renewal to Facility License No. R-74 University of Wisconsin Nuclear Reactor

ML102320209
Person / Time
Site:	University of Wisconsin
Issue date:	08/11/2010
From:	Agasie R Univ of Wisconsin
To:	Cowdrey C Office of Nuclear Reactor Regulation
References
RSC 1061, TAC ME1585
Download: ML102320209 (3)

Text

Nuclear Reactor Laboratory UWNR University of Wisconsin-Madison 1513 University Avenue, Room 1215 ME, Madison, WI 53706-1687, Tel: (608) 262-3392, FAX: (608) 262-8590 email: reactor@engr.wisc.edu, http://reactor.engr.wisc.edu August 11, 2010 RSC 1061 Mr. Christian Cowdrey Project Engineer, Research and Test Reactors United States Nuclear Regulatory Commission Washington, D.C. 20555

Subject:

Docket 50-156, License R-74 Response to Request for Clarification for License Renewal to Facility License No. R-74 University Of Wisconsin Nuclear Reactor TAC No. ME1585 (Financial Qualification RAI)

Dear Mr. Cowdrey:

By telephone conversation, on August 10, 2010, you requested additional clarifying information to our July 8, 2010 response to clarifying information regarding the Commission's request for additional information, dated November 13, 2009, in order to complete the review for the University of Wisconsin Nuclear Reactor's (UWNR) request to renew facility license number R-74.

Specifically, you asked us to clarify the escalation factor used to update the new baseline decommissioning cost estimate of

$9,208,564 (in assumed 2007 dollars) to $9,861,295 in 2010 dollars.

The means of adjusting the cost estimate is based on the inflation formula found in 10 CFR 50.75(c) (2). Specifically, an adjustment factor equal to 0.65*L + 0.13*E + 0.22*B is used where L and E are escalation factors for labor and energy, respectively, and taken from regional data from the U.S.

Department of Labor's Bureau of Labor Statistics and B is an escalation factor for waste burial taken from NUREG-1307.

To update the initial cost estimate in 2007 dollars to 2010 dollars the labor escalation factor was derived from the Employee Cost Index, series CIU2010000000230I(B) for non seasonally adjusted, total compensation, of private industry in the Midwest.

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L2007= 103.3 L2010 108.6 108.6 L2007_2010- -1.051 103.3 It should be noted that the value of the Employee Cost Index for 2007 was taken from quarter 1 and at the time of preparing the initial response quarter 1 data for 2010 was not available and therefore quarter 4 data from 2009 was used.

The escalation factor for energy is taken from NUREG-1307, revision 13, section 3.2 for the reference BWR'to be:

E = 0.54P + 0.46F Where P reflects escalation in industrial electric power and is derived from the Producer Price Index, series WPU0543, for non seasonally adjusted industrial electric power; and F reflects escalation in fuel costs and is derived from the Producer Price Index, series WPU057303, for non seasonally adjusted no. 2 diesel fuel. These values were determined to be:

P 2 0 07 = 180.4 F2007 = 235.5 P2010 = 187 F2010 = 206.8 It should be noted that the value of the Producer Price Index for 2007 was taken from the annual average column and at the time of preparing the initial response the 2010 data was taken to be the preliminary February 2010 values.

Therefore E 2 0 0 7 =0 . 54P 2 00 7 + 0 . 46F 2 0 0 7 E 2 0 0 7=0.54(180.4) + 0.46(235.5)

E2007= 205.7 And

E 2 01 0 =O.54P 2 0 10 + 0.46F 2010 E 2 0 1 0=0.54(187) + 0.46(206.8)

E2010 = 196.1 Finally 196.1 E2007_2010=- =0. 9532 205.7 The escalation factor for burial costs Is taken from NUREG-1307, revision 13, table 2.1. The values reported in table 2.1 are for the time range of 1998 to 2008 for even years only and do not project beyond 2008. No additional data is available.

Furthermore footnote "e" table 2.1 states: "B, values for the Generic site are assumed to be the.same at that provide for the Atlantic Compact, for lack of a better alternative at this time". Therefore the 2006 value for the Atlantic Compact site using vendors for the reference BWR, is taken as B2 0 07 = 9.345 and the 2008 value for the Atlantic Compact site using vendors for the reference BWR, is taken as B2 0 1 0 = 11.198.

Therefore 11.198 B20072010-=1.198 9.345 Applying the above derived escalation factors to the equation, 0.65*L + 0.13*E + 0.22*B, the adjustment factor was determined to be:

0.65(1.051)+0.13(0.9532)+0..22(l.198) = 1.071 Applying the 1.071 adjustment factor to the assumed 2007 estimate of $9,208,564 the current 2010 cost estimate for decommissioning is determined to be $9,861,295.

If you should have any further questions, please do not hesitate to contact me.