ML11109A046

Decommissioning Report of Financial Assurance

ML11109A046
Person / Time
Site:	Susquehanna
Issue date:	04/11/2011
From:	Kammeier K Allegheny Electric Cooperative
To:	Document Control Desk, Office of Nuclear Reactor Regulation
References
Download: ML11109A046 (5)

Text

A Touchstone Energy' Cooperative 4 t~

ELECTRIC COOPERATIVE, INC.

212 LOCUST ST.

• RO. BOX 1266

• HARRISBURG, PA 17108-1266

• PHONE 717/233-5704

• FAX 717/234-1309 April 11,2011 U.S. Nuclear Regulatory Commission Attn: Document Control Desk Mail Station OP1-17 Washington, DC 20555 SUSQUEHANNA STEAM ELECTRIC STATION DECOMMISSIONING REPORT OF FINANCIAL ASSURANCE Docket Nos. 50-387 and 50-388 In accordance with 10 CFR 50.75(f)(1), we are submitting this updated version of Allegheny Electric Cooperative, Inc.'s decommissioning report of financial assurance for our 10 percent interest in Susquehanna Units 1 and 2. This revision supersedes the March 29, 2011 report and was necessary only because of incorrect page numbering of Exhibit 1.

If you have any questions regarding the report, please contact me at (717) 233-5704.

Sincerely, Ken~neth W ýKammeierý

Attachment:

Decommissioning Report cc: NRC Region I Mr. D. J. Allard, PA DEP Mr. B. K. Vaidya, NRC Project Manager Mr. S. Hansell, NRC Sr. Resident Inspector Mr. M. Dusaniwskyj, NRC - OWF odD

Attachment 1 Page 1 of 1 NRC Decommissioning Funding Status Report December 31, 2010 Allegheny Electric Cooperative, Inc.

Susquehanna Steam Electric Station Allegheny Electric Cooperative (AEC) hereby submits this Decommissioning Report in compliance with 10 CFR 50.75(f)(1) for its 10 percent share of Susquehanna Units 1 and 2.

Information is submitted to provide Financial Assurance Unit 1 Unit 2

1. The minimum amount of decommissioning funds estimated to be required pursuant to 10 CFR 50.75(b) and (c).

At December 31, 2010 $62,219,205 $62,219,205 AEC's calculation of the NRC minimum formula is reflected in Exhibit 1.

2. The 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).

Market Value at December 31, 2010 $23,812,636 $23,812,636

3. See Exhibit 2 for a schedule of the annual amounts remaining to be collected.

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

Estimated Inflation rate for decommissioning costs 5% 5%

Estimated Earnings rates on decommissioning funds 6.5% 6.5%

Rates of other factors used in funding projections (None) (None)

AEC sets its own rates and believes the above assumptions are reasonable.

5. Any power sale contracts upon which licensee is relying to (see below) (see below) provide financial assurance.

AEC is the wholesale power supplier for the 14 rural electric cooperatives in Pennsylvania and New Jersey. AEC has all requirements contracts with its 14 member distribution cooperatives, which is the source for funding the Trust Fund.

6. Modifications to licensee's method of providing financial None None assurance since previous report.

7. Material changes to trust agreement. None None

Exhibit 1 Page 1 of 2 Calculation of Escalation Factors Used in Computation of Minimum Financial Assurance Amount for Decommissioning Susquehanna Steam Electric Station Units 1 and 2 Boiling Water Reactor (BWR)

Escalation Factor Formula - 0.65(L) + 0.13(E) + 0.22(B)

Escalation = (0.65 x 2.41) + (0.13 x 2.181) + (0.22 x 12.540)

Escalation = (1.567 + 0.284 + 2.759) = 4.609 (L) - Labor NUREG - 1307, Rev. 14, Table 3.2 Regional Factors for Labor Cost Adjustment -

To calculate the current labor adjustment factor (Lx) for a particular region, two numbers are needed: a base labor adjustment factor and the current Employment Cost Index (ECI). The base labor adjustment factors are shown in column 2 of Table 3.2, and the current employment cost indexes are shown in column 3. For the Northeast region, Lx/111.8 = 2.16/100 or Lx = 2.16*111.8/100 = 2.41 (E) - Energy Adjustment Factor NUREG - 1307, Rev. 14, Section 3.2 Energy Adjustment Factors - The adjustment factor for energy, Ex, is a weighted average of two components, namely, industrial electric power, Px, and light fuel oil, Fx. For the reference BWR it is: Ex (BWR) =

0.54Px + 0.46Fx. Updating the components from the provided references results in for the reference BWR:

Ex (BWR) = [(0.54 x 1.693) + (0.46 x 2.755)] = 2.181 (B) - Waste Burial NUREG - 1307, Rev.14, Table 2.1 - Values of Bx as a Function of LLW Burial Site, Waste Vendor, and Year: Bx Values for Generic LLW Disposal Site Direct Disposal with Vendors (BWR): 12.540

Exhibit 1 Page 2 of 2 Computation of Minimum Financial Assurance Amount for Decommissioning Susquehanna Steam Electric Station Units 1 and 2 Unit 1 . Unit 2 Base amount for BWR greater than 3,400 MWt = $135 million $135,000,000 $135,000,000 The Power Level of Unit 1 and Unit 2 is = 3,489 MWt Ownership percentage 10% 10%

Base amount per unit $13,500,000 $13,500,000 Escalation Factor 4.609 4.609 Escalated Amount per Unit $62,219,205 $61,219,205 Total Escalated Amount (Unit I + Unit 2) $124,438,410

Exhibit 2 Page 1 of 1 AEC Nuclear Decommissioning Trust Expected Contributions Year Unit 1 Unit 2 Total 2011 $1,297,000 $1,297,000 $2,594,000 2012 $1,348,880 $1,348,880 $2,697,760 2013 $1,402,835 $1,402,835 $2,805,670 2014 $1,458,949 $1,458,949 $2,917,897 2015 $1,517,307 $1,517,307 $3,034,613 2016 $1,577,999 $1,577,999 $3,155,998 2017 $1,641,119 $1,641,119 $3,282,238 2018 $1,706,764 $1,706,764 $3,413,527 2019 $1,775,034 $1,775,034 $3,550,068 2020 $1,846,035 $1,846,035 $3,692,071 2021 $1,919,877 $1,919,877 $3,839,754 2022 $1,996,672 $1,996,672 $3,993,344 2023 $2,076,539 $2,076,539 $4,153,078 2024 $2,159,600 $2,159,600 $4,319,201 2025 $2,245,984 $2,245,984 $4,491,969 2026 $2,335,824 $2,335,824 $4,671,647 2027 $2,429,257 $2,429,257 $4,858,513 2028 $2,526,427 $2,526,427 $5,052,854 2029 $2,627,484 $2,627,484 $5,254,968 2030 $2,732,583 $2,732,583 $5,465,167 2031 $2,841,887 $2,841,887 $5,683,773 2032 $2,955,562 $2,955,562 $5,911,124 2033 $3,073,785 $3,073,785 $6,147,569 2034 $3,196,736 $3,196,736 $6,393,472 2035 $3,324,606 $3,324,606 $6,649,211 2036 $3,457,590 $3,457,590 $6,915,179 2037 $3,595,893 $3,595,893 $7,191,787 2038 $3,739,729 $3,739,729 $7,479,458 2039 $3,889,318 $3,889,318 $7,778,636 2040 $4,044,891 $4,044,891 $8,089,782 2041 $4,206,687 $4,206,687 $8,413,373 2042 $4,374,954 $4,374,954 $8,749,908 2043 $0 $4,549,952 $4,549,952 2044 $0 $0 $0 2011-2044 $81,323,805 $85,873,757 $167,197,562