ML11109A006
| ML11109A006 | |
| Person / Time | |
|---|---|
| Site: | South Texas  |
| Issue date: | 04/13/2011 |
| From: | Harrison G South Texas |
| To: | Document Control Desk, Office of Nuclear Reactor Regulation |
| References | |
| NOC-AE-11002663, D57, G25, STI: 32851932 | |
| Download: ML11109A006 (15) | |
Text
Nuclear Operating Company South Texas Prolect Electnc Generatin$ Stion PO Box 289 Wadsw wrth Texas 77483 April 13, 2011 NOC-AE-1 1002663 File No.: D57, G25 10 CFR 50.75 U. S. Nuclear Regulatory Commission Attention: Document Control Desk One White Flint North 11555 Rockville Pike Rockville, MD 20852-2738 South Texas Project Units 1 and 2 Docket Nos. STN 50-498, STN 50-499 Financial Assurance for Decommissioninq - 2011 Update (Revised)
Reference:
George Harrison, STP Nuclear Operating Company, to NRC Document Control Desk, "Financial Assurance for Decommissioning - 2011 Update," dated March 24, 2011 (NOC-AE-11002656)
Pursuant to 10 CFR 50.75(f)(1), the STP Nuclear Operating Company (STPNOC) submits this revision to the referenced 2011 update regarding funds available, effective December 31, 2010, for decommissioning South Texas Project Units 1 and 2. The revision slightly increases the minimum decommissioning fund estimate for the 28% share of Units 1 and 2 held by City Public Service of San Antonio, and revises footnotes 2 and 3 for the 28% share where indicated in the margins. Footnote 2 for the 12% share incorporates an editorial change to the owner name.
The data are assembled by the individual co-owners of the South Texas Project; each of the co-owners is responsible for its respective contribution to the content of this report:
NRG South Texas LP; City Public Service of San Antonio (referred to as CPS Energy); and City of Austin - Austin Energy.
This letter contains no NRC commitments.
If there are any questions, please contact either Mr. Philip L. Walker at (361) 972-8392 or me at (361) 972-8074.
George Harrison General Manager, Finance and Accounting PLW Attachments:
- 2. Financial Assurance for Decommissioning - City Public Service of San Antonio
STI: 32851932 (7
NOC-AE-1 1002663 Page 2 of 2 cc:
(paper copy)
(electronic copy)
Regional Administrator, Region IV U. S. Nuclear Regulatory Commission 612 East Lamar Blvd., Suite 400 Arlington, Texas 76011-8064 Balwant K. Singal Senior Project Manager U.S. Nuclear Regulatory Commission One White Flint North (MS 8B1) 11555 Rockville Pike Rockville, MD 20852 Senior Resident Inspector U. S. Nuclear Regulatory Commission P. 0. Box 289, Mail Code: MN1 16 Wadsworth, TX 77483 C. M. Canady City of Austin Electric Utility Department 721 Barton Springs Road Austin, TX 78704 John Ragan Catherine Callaway Jim von Suskil NRG South Texas LP A. H. Gutterman, Esquire Morgan, Lewis & Bockius LLP Balwant K. Singal U. S. Nuclear Regulatory Commission Richard Pena E. Alarcon Kevin Polio City Public Service C. Mele City of Austin Peter Nemeth Crain Caton & James, P.C.
Richard A. Ratliff Texas Department of State Health Services Alice Rogers Texas Department of State Health Services
ATTACHMENT I SOUTH TEXAS PROJECT FINANCIAL ASSURANCE FOR DECOMMISSIONING 2011 UPDATE NRG SOUTH TEXAS LP NOC-AE-1 1002663 Page 1 of 4 FINANCIAL ASSURANCE FOR DECOMMISSIONING NRG South Texas LP 13.2% Ownership of South Texas Project Unit 1 Pursuant to 10 CFR 50.75(f)(1), each power reactor licensee is required to report to the NRC on a calendar year basis, beginning on March 31, 1999, and every two years thereafter, on the status of its decommissioning funding for each reactor or share of reactor it owns. The requested information is provided below.
- 1.
Minimum decommissioning fund
- estimate, pursuant to 10 CFR 50.75(b) and (c)1:
- 2.
Amount accumulated at the end of the calendar year preceding the date of the report for items included in 10 CFR 50.75(b) and (c):
- 3.
Schedule of the annual amounts remaining to be collected for items in 10 CFR 50.75(b) and (c):
- 4. Assumptions used regarding escalation in decommissioning cost, rates of earnings on decommissioning funds, and rates of other factors used in funding projections:
- 5.
Contracts upon which the licensee is relying pursuant to 10 CFR 50.75(e)(1)(ii)(c):
- 6.
Modifications to a licensee's current method providing financial assurance occurring since the last submitted report:
- 7.
Material changes to trust agreements:
Total Required:
Amount Accumulated2 :
Amount Remaining3:
Number of Years to Collect:
$61,642,350
$37,773,989
$20,870,100 17 Escalation Rate:
Earnings Rate:
2.713%
5.02% -7.01%
The Public Utility Commission of Texas (PUCT) approved the Decommission Funds Collections Agreement by and between AEP Texas Central Company (TCC) and NRG South Texas LP in which TCC collects the non-bypassable charges and deposits them directly into the trust.
- 1.
The NRC formulas in section 10 CFR 50.75(c) include only those decommissioning costs incurred by licensees to remove a facility or site safely from service, and reduce residual radioactivity to levels that permit: (1) release of the property for unrestricted use and termination of the license; or (2) release of the property under restricted conditions and termination of the license.
- 2.
By Order dated October 10, 2008 in PUCT Docket No. 35772, NRG South Texas LP was granted approval to establish a separate spent fuel management subaccount. By Order dated July 13, 2009 in PUCT Docket No. 36796, NRG South Texas was granted approval to establish a separate subaccount for pre-shutdown disposal of large components. The amounts allocable to the spent fuel management and pre-shutdown disposal subaccounts are not included in the reported amount. The reported amount includes funds accumulated based upon a site-specific study that includes license termination and other costs.
- 3.
Target amounts to be collected were established by the PUCT-approved separate non-bypassable decommissioning charges established in PUCT Tariff Control No. 31271. Actual collections will vary but the charges are intended to produce the targeted annual collection amounts established in PUCT Docket No. 35772.
Collections are being deposited on a priority basis in the large component disposal subaccount, which is expected to be fully funded in 2011.
Thereafter, collections will be apportioned between the subaccount (-27.5%) and the primary account for 10CFR50.75(c) costs (-72.5%).
NOC-AE-1 1002663 Page 2 of 4 FINANCIAL ASSURANCE FOR DECOMMISSIONING NRG South Texas LP 30.8% Ownership of South Texas Project Unit I Pursuant to 10 CFR 50.75(f)(1), each power reactor licensee is required to report to the NRC on a calendar year basis, beginning on March 31, 1999, and every two years thereafter, on the status of its decommissioning funding for each reactor or share of reactor it owns. The requested information is provided below.
- 1.
Minimum decommissioning fund
- estimate, pursuant to 10 CFR 50.75(b) and (c)1:
- 2. Amount accumulated at the end of the calendar year preceding the date of the report for items included in 10 CFR 50.75(b) and (c):
- 3.
Schedule of the annual amounts remaining to be collected for items in 10 CFR 50.75(b) and (c):
- 4. Assumptions used regarding escalation in decommissioning cost, rates of earnings on decommissioning funds, and rates of other factors used in funding projections:
- 5. Contracts upon which the licensee is relying pursuant to 10 CFR 50.75(e)(1)(ii)(c):
- 6.
Modifications to a licensee's current method providing financial assurance occurring since the last submitted report:
- 7.
Material changes to trust agreements:
Total Required:
Amount Accumulated 2:
Amount Remaining 3:
Number of Years to Collect:
$143,832,150
$94,572,148
$33,852,789 17 Escalation Rate:
Earnings Rate:
2.713%
5.02% - 7.01%
The Public Utility Commission of Texas (PUCT) approved the Decommission Funds Collections Agreement by and between CenterPoint Energy Houston Electric (CNP) and Texas Genco, LP In which CNP collects the non-bypassable charges and deposits them directly into the trust.
- 1.
The NRC formulas in section 10 CFR 50.75(c) include only those decommissioning costs incurred by licensees to remove a facility or site safely from service, and reduce residual radioactivity to levels that permit: (1) release of the property for unrestricted use and termination of the license; or (2) release of the property under restricted conditions and termination of the license.
- 2.
By Order dated October 10, 2008 in PUCT Docket No. 35772, NRG South Texas LP was granted approval to establish a separate spent fuel management subaccount. By Order dated July 13, 2009 in PUCT Docket No. 36796, NRG South Texas was granted approval to establish a separate subaccount for pre-shutdown disposal of large components. The amounts allocable to the spent fuel management and pre-shutdown disposal subaccounts are not included in the reported amount. The reported amount includes funds accumulated based upon a site-specific study that includes license termination and other costs.
- 3.
Target amounts to be collected were established by the PUCT-approved separate non-bypassable decommissioning charges established in PUCT Tariff Control No. 31271. Actual collections will vary but the charges are intended to produce the targeted annual collection amounts established in PUCT Docket No. 35772. Collections are being deposited on a priority basis in the large component disposal subaccount, which is expected to be fully funded in 2012. Thereafter, collections will be apportioned between the subaccount (-27.5%) and the primary account for 10CFR50.75(c) costs (-72.5%).
NOC-AE-1 1002663 Page 3 of 4 FINANCIAL ASSURANCE FOR DECOMMISSIONING NRG South Texas LP 13.2% Ownership of South Texas Project Unit 2 Pursuant to 10 CFR 50.75(f)(1), each power reactor licensee is required to report to the NRC on a calendar year basis, beginning on March 31, 1999, and every two years thereafter, on the status of its decommissioning funding for each reactor or share of reactor it owns. The requested information is provided below.
- 1. Minimum decommissioning fund
- estimate, pursuant to 10 CFR 50.75(b) and (c)1:
- 2.
Amount accumulated at the end of the calendar year preceding the date of the report for items included in 10 CFR 50.75(b) and (c):
- 3. Schedule of the annual amounts remaining to be collected for items in 10 CFR 50.75(b) and (c):
- 4. Assumptions used regarding escalation in decommissioning cost, rates of earnings on decommissioning funds, and rates of other factors used in funding projections:
- 5. Contracts upon which the licensee is relying pursuant to 10 CFR 50.75 (e)(1)(ii)(c):
- 6.
Modifications to a licensee's current method providing financial assurance occurring since the last submitted report:
- 7.
Material changes to trust agreements:
Total Required:
Amount Accumulated 2:
Amount Remaining 3:
Number of Years to Collect:
$61,642,350
$47,217,439
$16,840,502 18 Escalation Rate:
Earnings Rate:
2.727%
5.02% - 7.01%
The Public Utility Commission of Texas (PUCT) approved the Decommission Funds Collections Agreement by and between AEP Texas Central Company (TCC) and NRG South Texas LP in which TCC collects the non-bypassable charges and deposits them directly into the trust.
- 1.
The NRC formulas in section 10 CFR 50.75(c) include only those decommissioning costs incurred by licensees to remove a facility or site safely from service, and reduce residual radioactivity to levels that permit: (1) release of the property for unrestricted use and termination of the license; or (2) release of the property under restricted conditions and termination of the license.
- 2.
By Order dated October 10, 2008 in PUCT Docket No. 35772, NRG South Texas LP was granted approval to establish a separate spent fuel management subaccount. By Order dated July 13, 2009 in PUCT Docket No. 36796, NRG South Texas was granted approval to establish a separate subaccount for pre-shutdown disposal of large components. The amounts allocable to the spent fuel management and pre-shutdown disposal subaccounts are not included in the reported amount. The reported amount includes funds accumulated based upon a site-specific study that includes license termination and other costs.
- 3.
Target amounts to be collected were established by the PUCT-approved separate non-bypassable decommissioning charges established in PUCT Tariff Control No. 31271. Actual collections will vary but the charges are intended to produce the targeted annual collection amounts established in PUCT Docket No. 35772. Collections are being deposited on a priority basis in the large component disposal subaccount, which is expected to be fully funded in 2011.
Thereafter, collections will be apportioned between the subaccount (-24.3%) and the primary account for 10CFR50.75(c) costs (-75.7%).
NOC-AE-1 1002663 Page 4 of 4 FINANCIAL ASSURANCE FOR DECOMMISSIONING NRG South Texas LP 30.8% Ownership of South Texas Project Unit 2 Pursuant to 10 CFR 50.75(0(1), each power reactor licensee is required to report to the NRC on a calendar year basis, beginning on March 31, 1999, and every two years thereafter, on the status of its decommissioning funding for each reactor or share of reactor it owns. The requested information is provided below.
- 1. Minimum decommissioning fund
- estimate, pursuant to 10 CFR 50.75(b) and (c)1:
- 2. Amount accumulated at the end of the calendar year preceding the date of the report for items included in 10 CFR 50.75(b) and (c):
- 3.
Schedule of the annual amounts remaining to be collected for items in 10 CFR 50.75(b) and (c):
- 4. Assumptions used regarding escalation in decommissioning cost, rates of earnings on decommissioning funds, and rates of other factors used in funding projections:
- 5.
Contracts upon which the licensee is relying pursuant to 10 CFR 50.75(e)(1)(ii)(c):
- 6.
Modifications to a licensee's current method providing financial assurance occurring since the last submitted report:
- 7.
Material changes to trust agreements:
Total Required:
Amount Accumulated 2:
Amount Remaining 3:
Number of Years to Collect:
$143,832,150
$122,262,239
$10,793,353 18 Escalation Rate:
Earnings Rate:
2.727%
5.02% - 7.01%
The Public Utility Commission of Texas (PUCT) approved the Decommission Funds Collections Agreement by and between CenterPoint Energy Houston Electric (CNP) and Texas Genco, LP in which CNP collects the non-bypassable charges and deposits them directly into the trust.
- 1. The NRC formulas in section 10 CFR 50.75(c) include only those decommissioning costs incurred by licensees to remove a facility or site safely from service, and reduce residual radioactivity to levels that permit: (1) release of the property for unrestricted use and termination of the license; or (2) release of the property under restricted conditions and termination of the license.
- 2.
By Order dated October 10, 2008 in PUCT Docket No. 35772, NRG South Texas LP was granted approval to establish a separate spent fuel management subaccount. By Order dated July 13, 2009 in PUCT Docket No. 36796, NRG South Texas was granted approval to establish a separate subaccount for pre-shutdown disposal of large components. The amounts allocable to the spent fuel management and pre-shutdown disposal subaccounts are not included in the reported amount. The reported amount includes funds accumulated based upon a site-specific study that includes license termination and other costs.
- 3.
Target amounts to be collected were established by the PUCT-approved separate non-bypassable decommissioning charges established in PUCT Tariff Control No. 31271. Actual collections will vary but the charges are intended to produce the targeted annual collection amounts established in PUCT Docket No. 35772. Collections are being deposited on a priority basis in the large component disposal subaccount, which is expected to be fully funded in 2012. Thereafter, collections will be apportioned between the subaccount (-24.3%) and the primary account for 10CFR50.75(c) costs (-75.7%).
ATTACHMENT 2 SOUTH TEXAS PROJECT FINANCIAL ASSURANCE FOR DECOMMISSIONING 2011 UPDATE CITY PUBLIC SERVICE OF SAN ANTONIO NOC-AE-1 1002663 Page 1 of 4 FINANCIAL ASSURANCE FOR DECOMMISSIONING City Public Service of San Antonio 12% Ownership of South Texas Project Unit I Pursuant to 10 CFR 50.75(f)(1), each power reactor licensee is required to report to the NRC on a calendar year basis, beginning on March 31, 1999, and every two years thereafter, on the status of its decommissioning funding for each reactor or share of reactor it owns. The requested information is provided below.
- 1. Minimum decommissioning fund
- estimate, pursuant to 10 CFR 50.75(b) and (c)1:
- 2. Amount accumulated at the end of the calendar year preceding the date of the report for items included in 10 CFR 50.75(b) and (c):
- 3.
Schedule of the annual amounts remaining to be collected for items in 10 CFR 50.75(b) and (c):
- 4.
Assumptions used regarding escalation in decommissioning cost, rates of earnings on decommissioning funds, and rates of other factors used in funding projections:
- 5.
Contracts upon which the licensee is relying pursuant to 10 CFR 50.75(e)(1)(ii)(c):
- 6. Modifications to a licensee's current method providing financial assurance occurring since the last submitted report:
- 7.
Material changes to trust agreements:
Total Required:
$56,038,172
$33,882,358 Amount Accumulated2 :
Amount Remaining 3:
Number of Years to Collect:
$0 17 Escalation Rate:
Earnings Rate:
2.72%
7.3%
None None The Master Trust Agreement was revised effective January 1, 2011, in accordance with a Public Utility Commission of Texas (PUCT) order authorizing transfer of funds from Unit 1 to a spent fuel subaccount to be used only for fuel-related costs incurred after shutdown commences.
Additionally, the Master Trust Agreement was revised to allow for creation of a pre-shutdown decommissioning cost subaccount to fund large component replacement and disposal costs.
- 1.
The NRC formulas in 10 CFR 50.75(c) include only those decommissioning costs incurred by licensees to remove a facility or site safely from service, and reduce residual radioactivity to levels that permit: (1) release of the property for unrestricted use and termination of the license; or (2) release of the property under restricted conditions and termination of the license. The cost of dismantling or demolishing non-radiological systems and structures is not included in NRC decommissioning cost estimates.
The costs of managing and storing spent fuel on site until transfer to the Department of Energy are not included in the cost formulas.
- 2.
By Order dated November 20, 2008 in PUCT Docket No. 35786, CPS Energy was granted approval to establish separate spent fuel management and pre-shutdown activities subaccounts.
The amounts allocable to these subaccounts are not included in the reported amount. The reported amount includes funds accumulated based upon a site-specific study that includes license termination and other costs.
- 3.
CPS Energy estimates that the Trust is currently fully funded, based on the 2008 decommissioning cost study and updated escalation rates.
Additional contributions ended December 31, 2008.
If future estimates indicate that further funding may be required, CPS Energy would be able to exercise its rate setting apply to the PUCT to seek further funding for NRC license termination costs through cost-of-service recovery authorized by Texas law.
NOC-AE-1 1002663 Page 2 of 4 FINANCIAL ASSURANCE FOR DECOMMISSIONING City Public Service of San Antonio 28% Ownership of South Texas Project Unit I Pursuant to 10 CFR 50.75(0(1), each power reactor licensee is required to report to the NRC on a calendar year basis, beginning on March 31, 1999, and every two years thereafter, on the status of its decommissioning funding for each reactor or share of reactor it owns. The requested information is provided below.
- 1.
Minimum decommissioning fund
- estimate, pursuant to 10 CFR 50.75(b) and (c)1:
- 2.
Amount accumulated at the end of the calendar year preceding the date of the report for items included in 10 CFR 50.75(b) and (c):
- 3.
Schedule of the annual amounts remaining to be collected for items in 10 CFR 50.75(b) and (c):
- 4. Assumptions used regarding escalation in decommissioning cost, rates of earnings on decommissioning funds, and rates of other factors used in funding projections:
- 5.
Contracts upon which the licensee is relying pursuant to 10 CFR 50.75(e)(1)(ii)(c):
- 6.
Modifications to a licensee's current method providing financial assurance occurring since the last submitted report:
- 7.
Material changes to trust agreements:
Total Required:
$130,758,676 I Amount Accumulated2 :
Amount Remaining 3:
Number of Years to Collect:
Escalation Rate:
$94,429,860
$0 17 2.72%
Earnings Rate:
7.3%
None None The Master Trust Agreement was revised effective January 1, 2011, in accordance with a Public Utility Commission of Texas (PUCT) order authorizing transfer of funds from Unit I to a spent fuel subaccount to be used only for fuel-related costs incurred after shutdown commences.
Additionally, the Master Trust Agreement was revised to allow for creation of a pre-shutdown decommissioning cost subaccount to fund large component replacement and disposal costs.
- 1.
The NRC formulas in 10 CFR 50.75(c) include only those decommissioning costs incurred by licensees to remove a facility or site safely from service, and reduce residual radioactivity to levels that permit: (1) release of the property for unrestricted use and termination of the license; or (2) release of the property under restricted conditions and termination of the license. The cost of dismantling or demolishing non-radiological systems and structures is not included in NRC decommissioning cost estimates.
The costs of managing and storing spent fuel on site until transfer to the Department of Energy are not included in the cost formulas.
- 2.
Consistent with the approach taken for its 12% interest in the Order dated November 20, 2008, in PUCT Docket No.
35786, CPS Energy has established separate spent fuel management and pre-shutdown activity subaccounts. The amounts allocable to these subaccounts are not included in the reported amount. The reported amount includes funds accumulated based upon a site-specific study that includes license termination and other costs.
- 3.
CPS Energy estimates that the Trust is currently fully funded, based on the 2008 decommissioning cost study and updated escalation rates. Additional contributions ended January 31, 2008. If future estimates indicate that further funding may be required, CPS Energy would be able to exercise its rate setting authority to collect and accumulate further funds for NRC license termination costs.
NOC-AE-1 1002663 Page 3 of 4 FINANCIAL ASSURANCE FOR DECOMMISSIONING City Public Service of San Antonio 12% Ownership of South Texas Project Unit 2 Pursuant to 10 CFR 50.75(f)(1), each power reactor licensee is required to report to the NRC on a calendar year basis, beginning on March 31, 1999, and every two years thereafter, on the status of its decommissioning funding for each reactor or share of reactor it owns. The requested information is provided below.
- 1. Minimum decommissioning fund
- estimate, pursuant to 10 CFR 50.75(b) and (c)1:
- 2. Amount accumulated at the end of the calendar year preceding the date of the report for items included in 10 CFR 50.75(b) and (c):
- 3.
Schedule of the annual amounts remaining to be collected for items in 10 CFR 50.75(b) and (c):
- 4. Assumptions used regarding escalation in decommissioning cost, rates of earnings on decommissioning funds, and rates of other factors used in funding projections:
- 5.
Contracts upon which the licensee is relying pursuant to 10 CFR 50.75(e)(1)(ii)(c):
- 6.
Modifications to a licensee's current method providing financial assurance occurring since the last submitted report:
- 7.
Material changes to trust agreements:
Total Required:
$56,038,172
$35,021,913 Amount Accumulated 2:
Amount Remaining 3:
Number of Years to Collect:
$0 18 Escalation Rate:
Earnings Rate:
2.72%
7.3%
None None The Master Trust Agreement was revised effective January 1, 2011, in accordance with a Public Utility Commission of Texas (PUCT) order authorizing transfer of funds from Unit 2 to a spent fuel subaccount to be used only for fuel-related costs incurred after shutdown commences.
Additionally, the Master Trust Agreement was revised to allow for creation of a pre-shutdown decommissioning cost subaccount to fund large component replacement and disposal costs.
- 1.
The NRC formulas in 10 CFR 50.75(c) include only those decommissioning costs incurred by licensees to remove a facility or site safely from service, and reduce residual radioactivity to levels that permit: (1) release of the property for unrestricted use and termination of the license; or (2) release of the property under restricted conditions and termination of the license. The cost of dismantling or demolishing non-radiological systems and structures is not included in NRC decommissioning cost estimates. The costs of managing and storing spent fuel on site until transfer to the Department of Energy are not included in the cost formulas.
- 2.
By Order dated November 20, 2008 in PUCT Docket No. 35786, CPS Energy was granted approval to establish separate spent fuel management and pre-shutdown activities subaccounts.
The amounts allocable to these subaccounts are not included in the reported amount. The reported amount includes funds accumulated based upon a site-specific study that includes license termination and other costs.
- 3.
CPS Energy estimates that the Trust is currently fully funded, based on the 2008 decommissioning cost study and updated escalation rates. Additional contributions ended December 31, 2008.
If future estimates indicate that further funding may be required, CPS Energy would be able to apply to the PUCT to seek further funding for NRC license termination costs through cost-of-service recovery authorized by Texas law.
NOC-AE-1 1002663 Page 4 of 4 FINANCIAL ASSURANCE FOR DECOMMISSIONING City Public Service of San Antonio 28% Ownership of South Texas Project Unit 2 Pursuant to 10 CFR 50.75(f)(1), each power reactor licensee is required to report to the NRC on a calendar year basis, beginning on March 31, 1999, and every two years thereafter, on the status of its decommissioning funding for each reactor or share of reactor it owns. The requested information is provided below.
- 1.
Minimum decommissioning fund
- estimate, pursuant to 10 CFR 50.75(b) and (c)1:
- 2. Amount accumulated at the end of the calendar year preceding the date of the report for items included in 10 CFR 50.75(b) and (c):
- 3.
Schedule of the annual amounts remaining to be collected for items in 10 CFR 50.75(b) and (c):
- 4. Assumptions used regarding escalation in decommissioning cost, rates of earnings on decommissioning funds, and rates of other factors used in funding projections:
- 5.
Contracts upon which the licensee is relying pursuant to 10 CFR 50.75(e)(1)(ii)(c):
- 6.
Modifications to a licensee's current method providing financial assurance occurring since the last submitted report:
- 7.
. Material changes to trust agreements:
Total Required:
Amount Accumulated2 :
Amount Remaining 3:
Number of Years to Collect:
Escalation Rate:
$130,758,676
$114,617,695
$0 18 2.72%
Earnings Rate:
7.3%
None None The Master Trust Agreement was revised effective January 1, 2011, in accordance with a Public Utility Commission of Texas (PUCT) order authorizing transfer of funds from Unit 2 to a spent fuel subaccount to be used only for fuel-related costs Incurred after shutdown commences. Additionally, the Master Trust Agreement was revised to allow for creation of a pre-shutdown decommissioning cost subaccount to fund large component replacement and disposal costs.
- 1.
The NRC formulas in 10 CFR 50.75(c) include only those decommissioning costs incurred by licensees to remove a facility or site safely from service, and reduce residual radioactivity to levels that permit: (1) release of the property for unrestricted use and termination of the license; or (2) release of the property under restricted conditions and termination of the license. The cost of dismantling or demolishing non-radiological systems and structures is not included in NRC decommissioning cost estimates.
The costs of managing and storing spent fuel on site until transfer to the Department of Energy are not included in the cost formulas.
- 2.
Consistent with the approach taken for its 12% interest in the Order dated November 20, 2008, in PUCT Docket No.
35786, CPS Energy has established separate spent fuel management and pre-shutdown activity subaccounts. The amounts allocable to these subaccounts are not included in the reported amount. The reported amount includes funds accumulated based upon a site-specific study that includes license termination and other costs.
- 3.
CPS Energy estimates that the Trust is currently fully funded, based on the 2008 decommissioning cost study and updated escalation rates. Additional contributions ended January 31, 2008. If future estimates indicate that further funding may be required, CPS Energy would be able to exercise its rate setting authority to collect and accumulate further funds for NRC license termination costs.
ATTACHMENT 3 SOUTH TEXAS PROJECT FINANCIAL ASSURANCE FOR DECOMMISSIONING 2011 UPDATE CITY OF AUSTIN - AUSTIN ENERGY NOC-AE-1 1002663 Page 1 of 2 FINANCIAL ASSURANCE FOR DECOMMISSIONING City of Austin - Austin Energy 16% Ownership of South Texas Project Unit I Pursuant to 10 CFR 50.75(f)(1), each power reactor licensee is required to report to the NRC on a calendar year basis, beginning on March 31, 1999, and every two years thereafter, on the status of its decommissioning funding for each reactor or share of reactor it owns. The requested information is provided below.
- 1. Minimum decommissioning fund
- estimate, pursuant to 10 CFR 50.75(b) and (c)':
- 2.
Amount accumulated at the end of the calendar year preceding the date of the report for items included in 10 CFR 50.75(b) and (c) 2:
- 3.
Schedule of the annual amounts remaining to be collected for items in 10 CFR 50.75(b) and (c):
- 4.
Assumptions used regarding escalation in decommissioning cost, rates of earnings on decommissioning funds, and rates of other factors used in funding projections:
- 5.
Contracts upon which the licensee is relying pursuant to 10 CFR 50.75(e)(1)(ii)(c)?
- 6. Modifications to a licensee's current method providing financial assurance occurring since the last submitted report:
- 7.
Material changes to trust agreements:
Total Required:
Amount Accumulated:
Amount Remaining:
Number of Years to Collect:
$74,653,135
$49,778,721
$24,874,414 17 Escalation Rate:
Earnings Rate:
3.964%
5.073%
None None None
- 1.
The NRC formulas in 10 CFR 50.75(c) include only those decommissioning costs incurred by licensees to remove a facility or site safely from service, and reduce residual radioactivity to levels that permit: (1) release of the property for unrestricted use and termination of the license; or (2) release of the property under restricted conditions and termination of the license. The cost of dismantling or demolishing non-radiological systems and structures is not included in NRC decommissioning cost estimates. The costs of managing and storing spent fuel on site until transfer to Department of Energy are not included in the cost formulas.
- 2.
On October 1, 2008, an accounting division of the Decommissioning Trust balance was recorded to reflect the division of costs as referenced in footnote 1.
NOC-AE-1 1002663 Page 2 of 2 FINANCIAL ASSURANCE FOR DECOMMISSIONING City of Austin - Austin Energy 16% Ownership of South Texas Project Unit 2 Pursuant to 10 CFR 50.75(f)(1), each power reactor licensee is required to report to the NRC on a calendar year basis, beginning on March 31, 1999, and every two years thereafter, on the status of its decommissioning funding for each reactor or share of reactor it owns. The requested information is provided below.
- 1.
Minimum decommissioning fund
- estimate, pursuant to 10 CFR 50.75(b) and (c)1:
- 2.
Amount accumulated at the end of the calendar year preceding the date of the report for items included in 10 CFR 50.75(b) and (c) 2:
- 3.
Schedule of the annual amounts remaining to be collected for items in 10 CFR 50.75(b) and (c):
- 4. Assumptions used regarding escalation in decommissioning cost, rates of earnings on decommissioning funds, and rates of other factors used in funding projections:
- 5.
Contracts upon which the licensee is relying pursuant to 10 CFR 50.75(e)(1)(ii)(c):
- 6.
Modifications to a licensee's current method providing financial assurance occurring since the last submitted report:
- 7.
Material changes to trust agreements:
Total Required:
Amount Accumulated:
Amount Remaining:
Number of Years to Collect:
Escalation Rate:
Earnings Rate:
None None None
$74,653,135
$59,107,377
$15,545,758 18 3.964%
5.073%
- 1.
The NRC formulas in 10 CFR 50.75(c) include only those decommissioning costs incurred by licensees to remove a facility or site safely from service, and reduce residual radioactivity to levels that permit: (1) release of the property for unrestricted use and termination of the license; or (2) release of the property under restricted conditions and termination of the license. The cost of dismantling or demolishing non-radiological systems and structures is not included in NRC decommissioning cost estimates. The costs of managing and storing spent fuel on site until transfer to the Department of Energy are not included in the cost formulas.
- 2.
On October 1, 2008, an accounting division of the Decommissioning Trust balance was recorded to reflect the division of costs as referenced in footnote 1.