ML110750572

Biennial Decommissioning Funding Status Report

ML110750572
Person / Time
Site:	Fort Calhoun
Issue date:	03/16/2011
From:	Baughn S Omaha Public Power District
To:	Document Control Desk, Office of Nuclear Reactor Regulation
References
LlC-11-0028
Download: ML110750572 (8)

Text

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IIjjjjll Omaha Public Power District 444 South 16th Street Mall Omaha, NE 68102-2247 March 16, 2011 LlC-11-0028 U. S. Nuclear Regulatory Commission ATTN: Document Control Desk Washington, D.C. 20555

References:

1. Docket No. 50-285

2. NRC Regulatory Issue Summary 2001-07, Rev. 1, "10 CFR 50.75 Reporting and Record Keeping for Decommissioning Planning," January 8, 2009

3. NRC Draft Regulatory Issue Summary 201 O-XXX, "10 CFR 50.75 Reporting for Decommissioning Funding Status Reports," January 20, 2011 (76 FR 3540)

4. Letter from OPPD (T. C. Matthews) to NRC (Document Control Desk), "Fort Calhoun Station, Unit No.1, 2009 Biennial Decommissioning Funding Status Report," dated March 20, 2009 (LlC-09-0018)

SUBJECT:

Fort Calhoun Station, Unit No.1, 2011 Biennial Decommissioning Funding Status Report In accordance with the requirements of 10 CFR 50.75(f), attached is the, 2011 Biennial Decommissioning Funding Status Report for Fort Calhoun Station, Unit No.1.

The report was prepared using the guidance contained in References 2 and 3. Please note that due to the misapplication of cost indices, the total cost of decommissioning Fort Calhoun Station, Unit No.1 was overstated in the previous report (Reference 4). As shown in the attachment, this issue has been corrected.

No commitments to the NRC are made in this letter. If you should have any questions about the report, please contact Mr. John W. Thurber at (402) 636-3056.

Sincerely,

~')gb~

S. E.Baughn Manager - Nuclear Licensing SEB/mie Attachment Employment with Equal Opportunity

OMAHA PUBLIC POWER DISTRICT FORT CALHOUN STATION UNIT NO.1 2011 BIENNIAL DECOMMISSIONING FUNDING STATUS REPORT Based on Nuclear Regulatory Commission (NRC)

Regulation 10 CFR 50.75 (1)

The NRC requires that Omaha Public Power District (OPPD) report by March 31, 2011 and at least once every two years thereafter on the status of its decommissioning funding for Fort Calhoun Station Unit No.1. Based on the decommissioning funding requirement as outlined in 10 CFR 50.75 (1), OPPD reports the following infonnation:

A. Current Decommissioning Cost Estimate Pursuant to 10 CFR 50.75 (c), the January 2011 estimated NRC minimum decommissioning amount to decommission Fort Calhoun Station Unit No. 1 is

$395,519,000. See Attachment A for detailed decommissioning cost calculation and Attachment B for the applicable indices.

In addition to the minimum NRC decommissioning amount calculation, OPPD employs a consultant to complete a decommissioning cost update every five years. Based on the escalation of the consultant's most recent study, the total estimated cost to decommission Fort Calhoun Station Unit No.1 is $717,593,000. Of that total cost estimate, the current site-specific cost estimate for radiological decommissioning of Fort Calhoun Station Unit No.1 is $477,199,000, the current separate estimate of site restoration (State costs) is

$31,574,000 and the current separate estimate of spent fuel management costs is

$208,820,000.

The total cost estimate was reported as $809,200,000 in the 2009 Biennial Decommissioning Funding Status report. The total cost estimate should have been reported as $687,484,000. The overstatement was a result of misapplied indices.

B. Current Decommissioning Fund Balance The total OPPD Decommissioning Fund balance as of December 31, 2010 was

$321,188,300. OPPD maintains two separate trust accounts, one for the NRC minimum decommissioning amount as outlined in 10 CFR 50.75 (c) and one for other costs including additional radiological, site restoration and spent fuel management as detennined by the cost study. As of December 31, 2010, the balance in the fund for the NRC minimum decommissioning amount was $246,125,500. As of December 31, 2010, the balance in the funds accumulated for other. decommissioning costs was $75,062,800. This balance is allocated as follows: $17,789,900 for additional radiological costs, $7,506,300 for site restoration costs and $49,766,600 for spent fuel management costs.

Omaha Public Power District 2011 Biennial Decommissioning Funding Status Report to NRC Page Two The two trust funds are not commingled. The funds accumulated for the additional decommissioning costs including additional radiological, site restoration and spent fuel management are available for radiological decommissioning without prior approval by a State regulatory authority and are not subject to disapproval for radiological decommissioning by a State regulatory authority.

C. Annual Decommissioning Collections There was no annual collection for 2009 or 2010 as shown in Attachment C. The revenue source for any collections is llcost-of-servlce" electric rates.

D. Rates Used to Escalate Decommissioning Costs and Fund Balances The rates used for the escalation of the decommissioning cost estimate and earnings rates on the Decommissioning Fund are shown in Attachment B. Global Insight, Inc. of Waltham, Massachusetts provides the decommissioning cost estimate inflation and earnings rates forecasts. OPPD's Board of Directors approved both the inflation rates and earnings rates in December 2010 as part of OPPD's Corporate Operating Plan.

E. Contracts to Help Fund Decommissioning OPPD does not have any contracts pursuant to 10 CFR 50.75 (e}(1 }(ii}(C) and is not relying on contracts with a IInon-bypassable charge" to fund decommissioning.

F. Modifications to Method of Providing Financial Assurance There have been no modifications to OPPD's method of providing financial assurance since the decommissioning funding plan began in 1982 and continued pursuant to NRC Regulations in 1990.

G. Changes In the Decommissioning Funding Plan Trust Agreement There have been no changes to OPPD's Decommissioning Funding Plan Trust Agreement since the Plan began pursuant to NRC Regulations in 1990.

Dated:j-t'//

-M~

Division Manager - Finance

OMAHA PUBLIC POWER DISTRICT FORT CALHOUN STATION UNIT NO.1 2011 BIENNIAL DECOMMISSIONING FUNDING STATUS REPORT TO NRC ATTACHMENT A 2011 Escalation of the Minimum Decommissioning Amount (MDA) Estimate for Fort Calhoun Station Unit No.1 Based on Nuclear Regulatory Commission (NRC) Formulas and Application to OPPD The NRC accepted OPPD's Decommissioning Funding Plan in 1990. As part of the Decommissioning Funding Plan, OPPD annually calculates the MDA as follows:

NRC Formula for MDA

$75 million + $8800(P) = MDA for a Pressurized Water Reactor (PWR) Plant where: P = MWt reactor rating Fort Calhoun = 1500 MDA expressed in 1986 Dollars (to be escalated)

Escalation of NRC Formula for MDA Estimated Decommissioning Cost in Year XX = MDA X (.65L + .13E + .228)

Where: "L" is the Labor factor. The Labor factor is to be obtained from "Monthly Labor Review",

published by the U. S. Department of Labor - Bureau of Labor Statistics. Specifically, the appropriate regional data from the table entitled "Employment Cost Index - Private Nonfarm Workers", subtitled "Compensation" Is to be used. In OPPD's case, data from the Midwest Region Is to be used.

E is the Enemy factor. The Energy factor Is to*be obtained from the following two component formula speCifically weighted for PWR plants:

.5SP + .42F =E (Energy Factor) where: "P" Is the component for electric power, and "F" is the component for fuel oil Both "P" and "P' can be found In "Producer Price Indices", published by the U. S. Department of Labor - Bureau of Labor Statistics. "P' is to be obtained from the Industrial Electric Power Index and "F" Is to be obtained from the Light Fuel Oils Index.

"B" is the Waste Burial factor. The Waste Burial factor Is to be obtained from NRC report NUREG-1307. "Report on Waste Burial Charges" or its updates.

Attachment A Page Two OPPD's MDA and Escalation MDA = $75 million + $8800(P) (where P =1500 MWt)

$75 million + $8800(1500)

$75 million + $13.2 million =$88.2 million (1986 Dollars)

OPPD Escalation of MDA = $88.2 million X (.65L + .13E + .22B)

Where ilL", "Ett, and liB" =

ilL" =Labor Index Change Employment Cost Index* Private Nonfarm Workers - Compensation Midwest Region (Quarterly Basis Increase) 12-2010 =

111.3 2.2901 (an increase of 129.012%)

1-1986 48.6 (NRC Interpolated from 12 Rebased 12-05)

"E" = Energy Index Change Energy Index Change = (Electric Power Index Change X 58%) +

(Light Fuel Oils Index Change X 42%)

Producer Price Indices Industrial Electric Power 12-2010 191.3 = 67.51% Increase change 1-1986 114.2 Light Fuel Oils 12-2010 252.1 =207.40% increase change 1-1986 82.0 Application of the formula to 12-2010 leads to

=

Energy <<191.3/114.2)X .58) + <<252.1/82.0) X .42)

=

Energy 0.9716 + 1.2912 Energy = 2.263 (an increase of 126.28%)

Attachment A Page Three

=

liB" Waste Burial Index Change NUREG-1307 (Revision 13)

The Waste Burial escalation factor is found in Nuclear Regulation NUREG-1307 and its updates. OPPD's Biennial Decommissioning Funding Status Report will use the Generic LLW Disposal Site Index in calculating the NRC Minimum Decommissioning Amount.

Generic LLW Disposal Site Index 11-10 12.28 = 12.28 (an increase of 1128.0%)

(Waste Vendor Index) 1-86 1.00 The escalated cost formula is as follows:

Generic LLW Disposal Site Index

$88.2 million x (.65(2.29012)+.13(2.26282)+.22(12.280>> = $396.519 million In summary, OPPD's Fort Calhoun Station Unit No. 1 NRC Minimum Decommissioning Amount estimate escalated to January 2011 is $396,519,000.

OMAHA PUBLIC POWER DISTRICT FORT CALHOUN STATION UNIT NO.1 2011 BIENNIAL DECOMMISSIONING FUNDING STATUS REPORT TO NRC ATTACHMENT B U. S. Department of Labor Bureau of Labor Statistics Employment Cost Index Series 10: CIU20100000002301 (B)

Not seasonally adjusted Compensation: Total compensation Sector: Private Industry Periodicity: Index number Industryocc: Midwest Qtr42010 111.3 Producer Price Index - Commodities Series 10: WPUOS43 Not seasonally adjusted Group: Fuels &. related products

&.power Item: Industrial electric power Base Date: 198200 Dec-l0 191.3(P, Series 10: WPUOS73 Not seasonally adjusted Group: Fuels &. related products

& power Item: light fuel oils Base Date: 198200 Dec-l0 252.1(P)

U.S. NRC - Report on Waste Burial Charses NUREG-l307, Rev. 14 Published: November 2010 Values for Generic lLW Disposal Site Direct Disposal with Vendors - PWR 2010 12.280

OMAHA PUBLIC POWER DISTRICT FORT CALHOUN STATION UNIT NO.1 2011 BIENNIAL DECOMMISSIONING FUNDING STATUS REPORT TO NRC ATTACHMENT C Minimum Decommissioning Amount Decommissioning Fund Annual Collections, Inflation Rates and Earnings Rates Decommissioning Fund Annual Collection Inflation Earnings Year for NRC MDA Rate Rate 2009 $0 2.00% 2.14%

2010 $0 2.20% 2.61%

2011 $0 2.10% 3.44%

2012 $0 1.90% 4.24%

2013 $0 1.90% 4.42%

2014 $0 1.90% 5.26%

2015 $0 2.00% 5.29%

2016 $0 2.00% 5.29%

2017 $0 1.90% 5.29%

2018 $0 1.90% 5.29%

2019 $0 1.80% 5.29%

2020 $0 1.60% 5.29%

2021 $0 1.60% 5.29%

2022 $0 1.70% 5.29%

2023 $0 1.70% 5.29%

2024 $0 1.80% 5.29%

2025 $0 1.80% 5.29%

2026 $0 1.90% 5.29%

2027 $0 1.90% 5.29%

2028 $0 2.00% 5.29%

2029 $0 1.90% 5.29%

2030 $0 1.90% 5.29%

2031 $0 1.90% 5.29%

2032 $0 1.90% 5.29%

2033 $0 1.90% 5.29%