ML110950659
| 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 -
Attachment II -
Minimum Decommissioning Funds Estimate 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
[Wolf Creek Generating Station is a PWR licensed for 3565 MWt]
Escalation Factor (see calculation below)
Minimum estimate - Dec10 dollars in Millions 105 4.504 473 Escalation per paragraph (c)(2)
Escalation Factor (ESC) = 0.65 Labor + 0.13 Energy + 0.22 Waste Burial Share 4Q '10 Report Labor Energy Waste Burial TOTAL ESCALATION FACTOR 65%
13%
22%
2.320 2.263 12.280 1.508 0.294 2.702 4.504 NOTE: 4Q '10 factors per McDermott, Will & Emery memo dated February 8, 2011.
SITE SPECIFIC STUDY (August 2008)
Decommissioning Alternative DECON Period DECON (2008 $s)
Millions
$ 510.1 34.3
$ 49.1 83.4
% Total Radioactive Systems/Structures and License Termination Preparation for Decommissioning/Spent Fuel Mgmt Other Systems/Structures and Site Restoration Subtotal - Not Applicable to NRC Minimum 86%
6%
8%
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
$126,990
$129,179 KEPCo
$12,362 Market Value of External Sinking Fund as of 12/31/10
$ 268,531 Schedule of Amounts to be Collected (as approved by rate-setting authorities based on Site Specific Study) 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 2036 2037 2038 2039 2040 2041 2042 2043 2044 2045 7,282 6,992 6,939 6,946 6,953 6,960 6,968 6,975 6,983 6,991 6,999 7,006 7,015 7,023 7,031 7,040 7,048 7,057 7,066 7,075 7,084 7,093 7,102 7,112 7,122 7,132 7,141 7,152 7,162 7,172 7,183 7,194 7,205 7,216 7,227 2,447 3,150 3,150 3,150 3,150 3,150 3,150 3,150 3,150 3,150 3,150 3,150 3,150 3,150 3,150 3,150 3,150 3,150 3,150 3,150 3,150 3,150 3,150 3,150 3,150 3,150 3,150 3,150 3,150 3,150 3,150 3,150 3,150 3,150 3,150 3,150 788 3,674 3,377 3,317 3,317 3,317 3,317 3,317 3,317 3,317 3,317 3,317 3,317 3,317 3,317 3,317 3,317 3,317 3,317 3,317 3,317 3,317 3,317 3,317 3,317 3,317 3,317 3,317 3,317 3,317 3,317 3,317 3,317 3,317 3,317 3,317 1,659 458 465 472 479 486 493 501 508 516 524 532 539 548 556 564 573 581 590 599 608 617 626 635 645 655 665 674 685 695 705 716 727 738 749 760 0
Attachment II to CT 11-0018 Page 2 of 2 Assumptions re: Rates/Factors specific to Owner and Jurisdiction Cost Escalation Rate Kansas Missouri After Tax Earnings on Funds Kansas Missouri KGE KCPL KEPCo 3.73%
3.73%
3.73%
5.82%
6.48%
6.48%
3.73%
7.00%