ML110900185

Report of Status of Decommissioning Funding

ML110900185
Person / Time
Site:	Summer
Issue date:	03/29/2011
From:	Pierce P Santee Cooper
To:	Document Control Desk, Office of Nuclear Reactor Regulation
References
Download: ML110900185 (4)

Text

Sqsantee cooper March 29, 2011 Phil Pierce, P.E.

Vice President Generation Document Control Desk (843) 761-4094 U. S. Nuclear Regulatory Commission Ippierce@santeecooper.comn Washington, D. C. 20555

Subject:

Virgil C. Summer Nuclear Station Docket No. 50/395 Operating License No. NPF-12 Report of Status of Decommissioning Funding

Dear Sir/Madam:

The South Carolina Public Service Authority (Authority) and South Carolina Electric & Gas Company (SCE&G) have ownership interests of one-third and two-thirds, respectively, in the Virgil C. Summer Nuclear Station (VCSNS). As provided in 10 CFR § 50.75 (f)(1), each power reactor licensee is required to report to the Nuclear Regulatory Commission (NRC) on a calendar year basis, beginning March 31, 1999, and every two years thereafter, the status of its decommissioning funding for each reactor or share of reactor it owns. SCE&G has advised the Authority that it will disclose the required information relative to its two-thirds ownership share in a separate submittal.

The Authority's one-third share of the NRC formula minimum funding requirement is approximately $149 million as of December 31, 2010. This liability is funded by payments to an external sinking fund as provided for in 10 CFR § 50.75. The escalated liability for these costs is expected to total $522 million, stated in dollars of the year of expenditure. The market value of the external fund was approximately $96 million as of December 31, 2010.

A site-specific decommissioning study completed in 2006 identified the Authority's share of decommissioning costs which are in excess of NRC formula minimum funding requirements. This additional liability is estimated by the Authority to be approximately $64 million as of December 31, 2010. The escalated liability for excess costs is expected to total approximately $285 million, stated in dollars of the year of expenditure. The market value of the internal fund was approximately $71 million as of December 31, 2010 and the book value was approximately $65 million.

If there are any questions concerning this report, please contact me at (843) 761-4096.

Sincerely, Vice President Generation LPP:trw Attachment cc: Victor M. McCree R. E. Martin NRC Resident Inspector Moncks Corner Office I One Riverwood Drive I Moncks Corner, SC 29461-2901 1 (843) 761-8000 1 fax: (843) 761-7060

Attachment 1 1(a). The minimum decommissioning fund estimate, pursuant to 10 CFR § 50.75 (b) and (c). $149.020.987 Base Amount for PWR between 1,200 MWt and 3,400 MWt Estimated Cost (Year X) = (1986 $ Base Cost) (AL, + BE,, + CB,)

= ($100,520,000) {(.65 x 2.233) + (.13 x 2.263) + (.22 x 12.280))

$447,062,962 Authority's one-third share of 2010 Estimated Cost = $149,020,987 Where:

A .65 (NUREG 1307 Rev. 14)

B .13 (NUREG 1307 Rev. 14)

C .22 (NUREG 1307 Rev. 14)

Lx 2.233 (Computed Below)

Ex 2.263 (Computed Below)

Px 1.675 (Computed Below)

F, 3.074 (Computed Below)

B., 12.280 (NUREG 1307 Rev. 14) 1986 $ Base Cost ($75,000,000 + .0088Pmillion)

($75,000,000 + 25,520,000)

= $100,520,000 P 2,900 MWt Lx, Base L, (Dec 2005) x ECI(Qtr 4 2010) / 100

= 1.98 x 112.8 / 100

= 2.233 P = December 2010 Value / January 1986 Value

= 191.3 / 114.2

= 1.675 Fx = December 2010 Value / January 1986 Value

= 252.1 / 82.0

= 3.074 Ex = {(.58P.) + (.42Fx)}

= {(.58 x 1.675) + (.42 x 3.074))

= 2.263 Fourth Quarter 2010 / December 2010 values in the following Bureau of Labor Statistics indices were used to compute NRC minimum requirements:

Employment Cost Index - Total compensation, private industry, South region Series ID: CIU2010000000220I Producer Price Index - Commodities (Industrial electric power)

Series ID: wpu0543 Producer Price Index - Commodities (Light fuel oils)

Series ID: wpu0573 I of 3

Attachment 1 1(b). Escalation of the Authority's one-third share of the minimum funding requirement through the end of decommissioning.

Cost categories Labor, Equipment & Materials, Burial, and Other were estimated in a site-specific decommissioning study. These costs were escalated through the end of the decommissioning period based on various indices and estimates. Ultimate decommissioning costs to be funded from the external trust are estimated at $522,183,564 in escalated dollars.

2. Market value of the external trust fund at December 31, 2010 for items included in 10 CFR § 50.75. $95.662.377

3. Schedule of annual amounts remaining to be collected for items in 10 CFR § 50.75.

Beginning Balance Annual Earnings Ending Year - Book Value Deposits Balance 2011 85,858,490 250,860 4,593,429 90,702,779 2012 90,702,779 250,860 4,961,442 95,915,081 2013 95,915,081 250,860 5,342,470 101,508,411 2014 101,508,411 250,860 5,633,717 107,392,988 2015 107,392,988 250,860 5,799,221 113,443,069 2016 113,443,069 250,860 6,080,549 119,774,478 2017 119,774,478 250,860 6,503,754 126,529,092 2018 126,529,092 250,860 6,781,959 133,561,911 2019 133,561,911 250,860 7,158,918 140,971,690 2020 140,971,690 250,860 7,584,277 148,806,827 2021 148,806,827 250,860 8,065,330 157,123,017 2022 157,123,017 250,860 8,516,068 165,889,944 2023 165,889,944 250,860 8,991,235 175,132,039 2024 175,132,039 250,860 9,492,157 184,875,056 2025 184,875,056 250,860 10,020,228 195,146,144 2026 195,146,144 250,860 10,576,921 205,973,925 2027 205,973,925 250,860 11,163,787 217,388,571 2028 217,388,571 250,860 11,782,461 229,421,892 2029 229,421,892 250,860 12,434,667 242,107,418 2030 242,107,418 250,860 13,122,222 255,480,501 2031 255,480,501 250,860 13,847,043 269,578,404 2032 269,578,404 250,860 14,611,149 284,440,413 2033 284,440,413 250,860 15,416,670 300,107,944 2034 300,107,944 250,860 16,265,851 316,624,654 2035 316,624,654 250,860 17,161,056 334,036,570 2036 334,036,570 250,860 18,104,782 352,392,213 2037 352,392,213 250,860 19,099,658 371,742,730 2038 371,742,730 250,860 20,148,456 392,142,046 2039 392,142,046 250,860 21,254,099 413,647,005 2040 413,647,005 250,860 22,419,668 436,317,533 2041 436,317,533 250,860 23,648,410 460,216,803 2042 460,216,803 (37,005,941) 22,938,029 446,148,891 2043 446,148,891 (108,240,957) 18,314,610 356,222,543 2044 356,222,543 (136,571,533) 11,905,085 231,556,095 2 of 3

Attachment 1 2045 231,556,095 (109,537,895) 6,613,386 128,631,586 2046 128,631,586 (88,014,364) 2,201,453 42,818,676 2047 42,818,676 (42,812,874) 314 6,117

4. The assumptions used regarding escalation in decommissioning cost, rates of earnings on decommissioning funds, and rates of other factors used in funding projections follow:

• The plant will be decommissioned immediately upon license expiration (DECON alternative).

• Costs will escalate in accordance with the estimated future behavior of applicable indices for labor (4.6%), equipment and materials (0.4%), waste burial (2.9%) and other (3.5 %).

0 Waste vendors will be utilized.

0 The trust fund will accrue earnings in accordance with estimated effective yield (approximately 5.4%).

• All necessary funds will be on deposit at the time the plant is shut down.

5. Contracts upon which the licensee is relaying pursuant to 10 CFR § 50.75 (e) (1) (v).

None.

6. Modifications to the current funding assurance methods.

None.

7. Material changes to Trust Agreements.

None.

3 of 3