ML110950659

CFR 50.75 Report on Status of Decommissioning Funding

ML110950659
Person / Time
Site:	Wolf Creek
Issue date:	03/29/2011
From:	Stull A Wolf Creek
To:	Document Control Desk, Office of Nuclear Reactor Regulation
References
CT 11-0018
Download: ML110950659 (5)

Text

WLF CREEK

'NUCLEAR OPERATING CORPORATION Annette F. Stull Vice President and Chief Administrative Officer March 29, 2011 CT 11-0018 U.S. Nuclear Regulatory Commission ATTN: Document Control Desk Washington, DC 20555

Subject:

Docket No. 50-482: 10 CFR 50.75 Report on Status of Decommissioning Funding Gentlemen:

Pursuant to 10 CFR 50.75, this letter and enclosures report the status of decommissioning funding for the Wolf Creek Generating Station (WCGS) located near Burlington, Kansas.

General Information Wolf Creek Nuclear Operating Corporation (WCNOC) is a jointly owned corporation formed by its owners: Kansas Gas and Electric Company (KGE), a wholly-owned subsidiary of Westar Energy, Inc.; Kansas City Power & Light Company (KCPL), a wholly-owned subsidiary of Great Plains Energy Incorporated; and Kansas Electric Power Cooperative, Inc. (KEPCo).

WCNOC acts as an agent on behalf of its owners to operate, maintain, repair, decontaminate, and decommission WCGS. While WCNOC holds the operating license for WCGS, its formation has not changed the ownership or ultimate responsibility for the costs (including decommissioning) of WCGS.

Report Items Attachment I shows the estimated decommissioning funds required pursuant to 10 CFR 50.75 (b) and (c). Attachment II provides the total value of funds (including net earnings to date) accumulated in each owner's external trust fund as of December 31, 2010. Also reported on Attachment II is a schedule of the annual amounts remaining to be collected and assumptions for rates of cost escalation and earnings on funds. The rate orders which authorize collection of these amounts are based on a 2008 site specific study for WCGS, which assumes demolition of all structures at the plant site. Approximately 86% of the study's total estimated costs are for work scopes considered in the minimum decommissioning cost formulas from 10 CFR 50.75 (b) and (c).

There have been no modifications to the method for providing financial assurance since the last submitted report. Each owner has an external trust fund that it maintains to provide for its P.O. Box 411 / Burlington, KS 66839 / Phone: (620) 364-8831 An Equal Opportunity Employer M/F/HC/VET

CT 11-0018 Page 2 of 2 share of WCGS decommissioning costs, and is making regular contributions from amounts collected in electric rates approved by their state commissions and the Federal Energy Regulatory Commission. Each owner's schedule of contributions under Kansas Corporation Commission (KCC) jurisdiction is based on a 60 year plant life for WCGS with the renewed Facility Operating License scheduled to expire in 2045. KCPL's schedule of contributions under Missouri Public Service Commission (MPSC) jurisdiction is also based on a 60 year plant life.

There are no regulatory commitments contained within this correspondence. If you have any questions, please call me at (620) 364-4004, or Mr. Gautam Sen at (620) 364-4175.

Sincerely,

\,/ ,dZ7 Annette F. Stull AFS/rlt Attachment I - Minimum Decommissioning Funds Estimate Attachment II - Decommissioning Funding Status Report cc: E. E. Collins (NRC), w/a J. R. Hall (NRC), w/a G. B. Miller (NRC), w/a Senior Resident Inspector (NRC), w/a to CT 11-0018 Page 1 of 1 WOLF CREEK NUCLEAR OPERATING CORPORATION Minimum Decommissioning Funds Estimate pursuant to 10 CFR 50.75 (b) and (c)

MINIMUM ESTIMATE Table (c)(1) - Jan86 dollars in Millions $ 105

[Wolf Creek Generating Station is a PWR licensed for 3565 MWt]

Escalation Factor (see calculation below) 4.504 Minimum estimate - Dec10 dollars in Millions $ 473 Escalation per paragraph (c)(2)

Escalation Factor (ESC) = 0.65 Labor + 0.13 Energy + 0.22 Waste Burial Share 4Q '10 Report Labor 65% 2.320 1.508 Energy 13% 2.263 0.294 Waste Burial 22% 12.280 2.702 TOTAL ESCALATION FACTOR 4.504 NOTE: 4Q '10 factors per McDermott, Will & Emery memo dated February 8, 2011.

SITE SPECIFIC STUDY (August 2008)

Decommissioning Alternative DECON (2008 $s)

DECON Period Millions  % Total Radioactive Systems/Structures and License Termination $ 510.1 86%

Preparation for Decommissioning/Spent Fuel Mgmt $ 34.3 6%

Other Systems/Structures and Site Restoration $ 49.1 8%

Subtotal - Not Applicable to NRC Minimum $ 83.4 14%

TOTAL COST ESTIMATE $ 593.5 100%

Attachment II to CT 11-0018 Page 1 of 2 WOLF CREEK NUCLEAR OPERATING CORPORATION Decommissioning Funding Status Report as of December 31, 2010 (Dollars in Thousands)

TOTAL KGE KCPL KEPCo Market Value of External $ 268,531 $126,990 $129,179 $12,362 Sinking Fund as of 12/31/10 Schedule of Amounts to be Collected (as approved by rate-setting authorities based on Site Specific Study) 2010 7,282 3,150 3,674 458 2011 6,992 3,150 3,377 465 2012 6,939 3,150 3,317 472 2013 6,946 3,150 3,317 479 2014 6,953 3,150 3,317 486 2015 6,960 3,150 3,317 493 2016 6,968 3,150 3,317 501 2017 6,975 3,150 3,317 508 2018 6,983 3,150 3,317 516 2019 6,991 3,150 3,317 524 2020 6,999 3,150 3,317 532 2021 7,006 3,150 3,317 539 2022 7,015 3,150 3,317 548 2023 7,023 3,150 3,317 556 2024 7,031 3,150 3,317 564 2025 7,040 3,150 3,317 573 2026 7,048 3,150 3,317 581 2027 7,057 3,150 3,317 590 2028 7,066 3,150 3,317 599 2029 7,075 3,150 3,317 608 2030 7,084 3,150 3,317 617 2031 7,093 3,150 3,317 626 2032 7,102 3,150 3,317 635 2033 7,112 3,150 3,317 645 2034 7,122 3,150 3,317 655 2035 7,132 3,150 3,317 665 2036 7,141 3,150 3,317 674 2037 7,152 3,150 3,317 685 2038 7,162 3,150 3,317 695 2039 7,172 3,150 3,317 705 2040 7,183 3,150 3,317 716 2041 7,194 3,150 3,317 727 2042 7,205 3,150 3,317 738 2043 7,216 3,150 3,317 749 2044 7,227 3,150 3,317 760 2045 2,447 788 1,659 0

Attachment II to CT 11-0018 Page 2 of 2 Assumptions re: Rates/Factors specific to Owner and Jurisdiction KGE KCPL KEPCo Cost Escalation Rate Kansas 3.73% 3.73% 3.73%

Missouri - 3.73%

After Tax Earnings on Funds Kansas 5.82% 6.48% 7.00%

Missouri - 6.48%