ML11158A163
| ML11158A163 | |
| Person / Time | |
|---|---|
| Site: | Oconee, Mcguire, Catawba, McGuire  |
| Issue date: | 06/24/2011 |
| From: | Stang J Plant Licensing Branch II |
| To: | Waldrep B Duke Energy Carolinas |
| Stang J, DORL/LPL2-1, 415-1345 | |
| References | |
| TAC ME5465, TAC ME5466, TAC ME5499, TAC ME5500, TAC ME5508, TAC ME5509, TAC ME5510 | |
| Download: ML11158A163 (4) | |
Text
UNITED STATES NUCLEAR REGULATORY COMMISSION WASHINGTON, D.C. 20555*0001 June 24, 2011 Mr. Benjamin C. Waldrep Vice President, Nuclear Corporate Duke Energy Carolinas, LLC EC07H I P.O. Box 1006 Charlotte, NC 28201-1006
SUBJECT:
CATAWBA NUCLEAR STATION, UNITS 1 AND 2, MCGUIRE NUCLEAR STATION, UNITS 1 AND 2, AND OCONEE NUCLEAR STATION, UNITS 1,2, AND 3 - 2011 DECOMMISSIONING FUNDING STATUS REPORT - REQUEST FOR ADDITIONAL INFORMATION (TAC NO.S ME5465, ME5466, ME5499, ME5500, ME5508, ME5509, AND ME551 0)
Dear Mr. Waldrep:
Enclosed is the subject Request for Additional Information (RAI) for the Catawba Nuclear Station, Units 1 and 2, McGuire Nuclear Station, Units 1 and 2, and Oconee Nuclear Station, Units 1, 2, and 3, 2011 Decommissioning Funding Status reports from the Division of Inspections and Regional Support, Financial Analysis and International Projects Branch, of the Office of Nuclear Reactor Regulation.
The Nuclear Regulatory Commission staff's request for additional information is enclosed.
Please provide a response within thirty (30) days of the date of this letter.
Sincerely, J hn Stang, Senior ect Manager Plant Licensing Branch 11-1 Division of Operating Reactor Licensing Office of Nuclear Reactor Regulation Docket Nos. 50-413,50-414,50-369,50-370, 50-269, 50-270, and 50-287
Enclosure:
RAI cc w/encl: Distribution via Listserv
REQUEST FOR ADDITIONAL INFORMATION BY THE OFFICE OF NUCLEAR REACTOR REGULATION 2011 DECOMMISSIONING FUNDING STATUS REPORT FOR CATAWBA NUCLEAR STATION, UNITS 1 AND 2 DOCKET NOS. 50-413, AND 50-414 MCGUIRE NUCLEAR STATION, UNITS 1 AND 2 DOCKET NOS. 50-369 AND 50-370 OCONEE NUCLEAR STATION, UNITS 1,2, AND 3 DOCKET NOS. 50-269. 50-270, AND 50-287 The Request for Additional Information (RAI) provided is in response to the Catawba Nuclear Station, Units 1 and 2 (Catawba 1 and 2), McGuire Nuclear Station, Units 1 and 2 (McGuire 1 and 2), Oconee Nuclear Station, Units 1, 2, and 3 (Oconee 1, 2, and 3), 2011 Decommissioning Funding Status (DFS) reports. On March 30, 2011, Duke Energy Carolinas, LLC (Duke Energy), submitted to the Nuclear Regulatory Commission (NRC) the 2011 Decommissioning Funding Status (DFS) reports for Catawba 1 and 2, McGuire 1 and 2, and Oconee 1, 2, and 3, as required under Title 10 of the Code of Federal Regulations (10 CFR) Part 50, paragraph 50.75(f)(1) (Agencywide Documents Access and Management System Accession No. ML110910058). Duke Energy should provide a response within 30 days from the date of this letter.
RAI #1:
Citations for real rate of return:
Provide the citation (e.g., an Order by the rate-regulatory authority) by the regulatory entity that allows for the assumptions used regarding rates of escalation in decommissioning costs, rate of earnings on decommissioning funds and rates of other factors assumed in the DFS reports for Catawba 1 and 2, McGuire 1 and 2. and Oconee 1, 2, and 3.
On March 30, Duke Energy reported the following:
Duke Energy:
4 percent rate of escalation, 6 percent rate of earnings on qualified decommissioning funds, and 5.5 percent rate of earnings on non:-qualified decommissioning funds.
North Carolina Electric Membership Corporation:
2.82 percent rate of escalation, and 4.34 percent rate of return on decommissioning funds.
Enclosure
- 2 North Carolina Municipal Power Agency NO.1:
4 percent rate of escalation, and 5.5 percent rate of return on decommissioning funds.
Piedmont Municipal Power Agency:
4 percent rate of escalation, and 5.5 percent rate of return on decommissioning funds.
As stated in 10 CFR 50.75(f)(1):
The information in this [DFS] report must include [...] the assumptions used regarding rates of escalation in decommissioning costs, rates of earnings on decommissioning funds, and rates of other factors used in funding projections...
RAI #2:
Shutdown date inconsistency:
Clarify the inconsistency in the Catawba 1 and 2 shutdown dates used for collections between Duke Energy and the other licensees and any potential impact on the future collections. The clarification should include the basis for Duke Energy's statement that "Annual amounts are based on the likelihood that units will be shut down five years prior to the license expiration date."
Also, explain why Duke Energy's co-licensees for Catawba 1 and 2 do not base their financial assurance amounts on the likelihood that the units will shut down five years prior to license termination (Le. 2038). North Carolina Electric Membership Corporation and Piedmont Municipal Power Agency provided their schedule of annual amounts to be collected based upon the actual license termination date (i.e. 2043) for Catawba 1 and 2. North Carolina Municipal Power Agency No.1 provided its schedule of annual amounts to be collected for Catawba 1 and 2 based on the last year of their current Participant Project Power Sales Agreement with Duke Energy (i.e. 2032).
As stated in 10 CFR 50.75(f)(1):
The information in this [DFS] report must include [...] a schedule of the annual amounts remaining to be collected...
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! NAME JStang JThompson MO'Brien CRegan' NLO GKulesa JStang (RMartin for)
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