ML110910240

Decommissioning Financial Assurance

ML110910240
Person / Time
Site:	North Anna
Issue date:	03/28/2011
From:	Kees R Old Dominion Electric Cooperative
To:	Document Control Desk, Office of Nuclear Reactor Regulation
References
Download: ML110910240 (3)

Text

March 28, 2011 United States Nuclear Regulatory Commission N Attention: Document Control Desk l Washington, D.C. 20555-0001 !Old Domni'on Ladies and Gentlemen: Electric Coopelative OLD DOMINION ELECTRIC COOPERATIVE NORTH ANNA POWER STATION UNITS I AND 2 LICENSE NOS. NPF-4.7 DECOMMISSIONING FINANCIAL ASSURANCE In compliance with 10 CFR 50.75(f)(1), Old Dominion Electric Cooperative (Old Dominion) is providing this report on the status of its decommissioning funding for each of the two nuclear power reactors as referenced above. provides the following information:

• 2011 NRC Minimum Financial Assurance Amount

• Projected Annual Escalation Factors In Decommissioning Costs

• Funds Held in External Trusts at December 31, 2010

• Old Dominion's Current Annual Sinking Fund Contributions

• Expected Earnings On Existing Decommissioning Funds

• Annual Funding Levels Necessary to Meet 2011 NRC Minimum Financial Assurance Amount In accordance with 10 CFR 50.75 (e)(1)(ii), Old Dominion provides financial assurance by the external sinking fund method. Concurrent with the preceding declarations and in accordance with 10 CFR 50.75(f)(1), Old Dominion states that since the time of the last submitted report there have been no changes to its current methods of providing financial assurance and there have been no material changes to trust agreements.

Please contact us if you have any questions or require additional information.

Sincerely, Robert L. Kees Senior Vice President and Chief Financial Officer Attachments cc: US Nuclear Regulatory Commission James T. Reece Region II NRC Senior Resident Inspector Sam Nunn Atlanta Federal Center North Anna Power Station 61 Forsyth Street, S.W. Suite 23T85 Atlanta, Georgia 30303 Innsbrook T Corporate Center 4201 Dominion Boulevard

• Glen Allen, Virginia 23060 Tel: 804-747-0592 www.odec.com Fax: 804-747-3742

OLD DOMINION ELECTRIC COOPERATIVE NORTH ANNA POWER STATION UNITS 1 AND 2 LICENSE NOS. NPF-4.7 DECOMMISSIONING FINANCIAL ASSURANCE cc: David A. Christian Senior Vice President and Chief Nuclear Officer Virginia Electric and Power Company 5000 Dominion Boulevard Glen Allen, VA 23060

Attachment 1 OLD DOMINION ELECTRIC COOPERATIVE NORTH ANNA POWER STATIONS UNITS I AND 2 2010 NUCLEAR DECOMMISSIONING FINANCIAL ASSURANCE In Millions, unless otherwise noted North Anna' Unit North Anna' Unit Total For 1 NPF-4 2 NPF-7 All Units Method for Providing External External Financial Assurance Sinking Fund Sinking Fund 2010 NRC Minimum Financial Assurance Amount: $49.64 $49.64 $99.27 Funds Held In External Trust At December 31, 20102: $34.20 $34.83 $69.03 Funds Held in External Trusts as of 12/31/10 minus NRC Minimum Amount as of 12/31/10 (15.44) (14.81)

Projected Annual Escalation Factors In Decommissiong Costs: 4.408% 4.408% 4.408%

Expected Earnings On Existing Decommissioning Funds: 7.769% 7.769% 7.769%

Year Operating License Expires: 2038 2040 (reflects license renewal) 2010 NRC Minimum Financial Assurance Amounts Stated In Future Dollars (at start of Decommissioning) $221.72 $225.80 $447.52 Funds held in External Trusts in Future Dollars (at start of Decommissioning) $277.86 $328.64 $606.49 Funds in Excess to NRC Minimum In Future Dollars $56.14 $102.84 $158.98 Old Dominion's Current Annual 23 Sinking Fund Contributions ' : $0.00 $0.00 $0.00 Annual Funding Levels Necessary To Meet 2010 NRC Minimum Financial Assurance Amount:

0.00 0.00 0.00 The North Anna Power Station is jointly owned by Virginia Electric and Power Company (88.4%) and Old Dominion Electric Cooperative (11.6%). However, Old Dominion Electric Cooperative is responsible for 10.74%

of the decommissioning obligation. The amounts stated in the above tables reflect only that portion of the decommissioning obligation attributable to Old Dominion Electric Cooperative.

2 Excludes amounts designated for the decommissioning of the independent spent fuel storage installation.

3 Old Dominion Electric Cooperative relies upon the external sinking fund method for providing financial assurance.