ML11287A192

Mid-American Ltr. Dated 10/11/11 RAI #2

ML11287A192
Person / Time
Site:	Quad Cities
Issue date:	10/11/2011
From:	Cindy Montgomery MidAmerican Energy Co
To:	Joel Wiebe Plant Licensing Branch III
Wiebe, Joel NRR/DORL/LPL3-2, 415-6606
Shared Package
ML112980183	List: ML11287A189 ML11287A192 ML112980202
References
TAC ME5524, TAC ME5525
Download: ML11287A192 (2)

Text

MidAmerican C

MidArnerican Energy 4299 N.W. Urbandale Drive RGY Urbandale, Iowa 50322 OBSESSIVELY, RELENTLESSLY AT YOUR SMVICE. 515 281-2976 Telephone 515 242-4398 Fax crmontgomern @midamerican.com Charles R. Montgomery Managing Senior Attorney October 11, 2011 Joel S. Wiebe, Senior Project Manager Plant Licensing Branch 111-2 Division of Operating Reactor Licensing Office of Nuclear Reactor Regulation U.S. Nuclear Regulatory Commission Washington, D.C. 20555-0001 Re: Quad Cities Nuclear Power Station, Units 1 and 2 - Requests for Additional Information Related to MidAmerican Energy Company's Decommissioning Funding Status Report (TAC Nos. ME5524 and ME5525)

Dear Mr. Wiebe:

This letter and the accompanying attachments are offered in response to the two requests for additional information (RAI) sent to MidAmerican Energy Company (MidAmerican) by way your letter of September 13, 2011. Please let me know if more is required than has been submitted below and in the attachments.

RAI #1: In response to this RAI MidAmerican has provided the three (3) attached documents: (i) Attachment 1. The pre-filed testimony of Thomas C. Foster submitted in Docket No. RPU-07-2 before the Iowa Utilities Board. Mr. Foster's testimony was part of MidAmerican's "Application of MidAmerican Energy Company for a Determination of Ratemaking Principles." At pages 11-12 of that pre-filed testimony Mr. Foster addresses MidAmerican's request that it be allowed to reduce its contributions toward nuclear decommissioning costs for Quad Cities Nuclear Power Station (QCNPS). Mr. Foster makes reference (on page 12, lines 1 - 18) to an analysis performed by NISA Investment Advisors, L.L.C. (NISA), but the analysis was not submitted with the testimony. (ii) Attachment 2.

MidAmerican has provided the NISA analysis mentioned in Mr. Foster's testimony. Pages 3 and 4 (Contribution Schedule #4 (Extended Contributions) with DECON Method Liability; Avg Escalation Rate of 4.39% and Approx After Tax Return of 6.18%) of that analysis provide the assumptions that MidAmerican used in suggesting the new level of decommissioning funding for QCNPS ultimately approved in Docket No. RPU-07-2.

(iii) Attachment 3. The Iowa Utilities Board Order Approving Stipulation and Agreement which approves the new level of funding at page 14 thereof. Attachments 1 - 3 demonstrate that the current level of funding approved by the Iowa Utilities Board is based upon an assumption of an approximate after-tax return equal to 6.18%, an average escalation rate of 4.39%, the DECON method of decommissioning, and extended contributions. See page 11 of the NISA analysis for the extended contributions assumptions.

MidAmerican

"*ENERGY OBSESSIVELY, RELENTLESSLY AT YOUR SERVICE.

Joel S. Wiebe, Senior Project Manager October 11, 2011 Page Two RAI #2: MidAmerican herewith provides a more current table (supplementing the table submitted at Section 2, on page 2, of MidAmerican's March 30, 2011 Decommissioning Funding Status Report) which provides the fair market value that is the net value after accounting for taxes due and payable as of December 31, 2010. Please see the table below.

External Trust Fund Balance (Fair Market value)

Unit 1 $147,159,699.

Unit 2 $147,256,175.

Totals $294,415,874.

Again, please let me know if you require additional information. My contact information is provided above.

Sincerely, cWA AC1/2,