ML12082A178

Decommissioning Funding Status Report

ML12082A178
Person / Time
Site:	Millstone
Issue date:	03/22/2012
From:	Heacock D Dominion Nuclear Connecticut
To:	Document Control Desk, NRC/FSME
References
12-094
Download: ML12082A178 (5)

Text

Dominion Nuclear Connecticnt, Inc.

5000 Dominion Boulevard, Glen Allen, VA 23060 Dominion Web Address: www.dom.com March 22, 2012 Attn: Document Control Desk Serial No.12-094 U.S. Nuclear Regulatory Commission NLOSfTJS RO Washington, DC 20555-0001 Docket No. 50-245 License No. DPR-21 DOMINION NUCLEAR CONNECTICUT, INC.

MILLSTONE POWER STATION UNIT 1 DECOMMISSIONING FUNDING STATUS REPORT Pursuant to 10 CFR 50. 75(f)(1), Dominion Nuclear Connecticut, Inc. (DNC) submits the attached information on the status of decommissioning funding for Millstone Power Station Unit 1 (rvIPS1).

• There have been no material changes to the trust agreements established for nuclear decommissioning of MPS1 since the last submittal (letter Serial No.11-133 dated March 29, 2011).

• A 2% real rate of return (6.41 % Trust Fund return and a 4.41 % escalation rate) was used to demonstrate adequate decommissioning funding.

• There are no regulatory entity orders for MPS1 setting rates of return for decommissioning funds greater than the allowed 2% real rate of return.

• There are no contracts which DNC is relying upon for financial assurance as defined under 10 CFR 50.75(e)(1 )(v).

• There are no annual contributions to the MPS1 Trust Fund other than from fund growth.

• The decommissioning Trust Fund balance shown is after-tax in that taxes on 2011 taxable earnings have been paid out of the Trust Fund. The Trust Fund balances have not been adjusted for unrealized gain or loss positions not currently taxable. (Table 1) provides the amount of decommissioning funds accumulated as of December 31, 2011, the current decommissioning cost estimate, and the escalation and earning rates assumed. Additionally, an annual cash flow analysis is shown in (Table 2) which is based on annual expenditures identified in the decommissioning cost study and shows that the accumulated funds are sufficient to cover not only radiological decommissioning costs but also spent fuel management and non-radiological costs.

The decommissioning cost estimate in Table 1 and projected expenditures in Table 2 are based on a site-specific decommissioning cost study updated in 2011, as is required periodically by 10 CFR 50.82(a)(8)(iv), and conservatively include spent fuel management and non-radiological decommissioning costs. Other than this periodic

Serial NO.12-094 MPS1 Funding Status Page 2 of 2 adjustment to the cost estimate, there has been no modification to the method of providing financial assurance since the last submitted report.

Should you have any questions regarding this submittal, please contact Mr. David A. Sommers at (804) 273-2823.

Sincerely, u~

David A. Heacock President and Chief Nuclear Officer Dominion Nuclear Connecticut, Inc.

Attachment Commitments made by this letter: None cc: U. S. Nuclear Regulatory Commission Region I 475 Allendale Road King of Prussia, PA 19406-1415 Mr. S. J. Giebel NRC Project Manager, MPSU1 U. S. Nuclear Regulatory Commission Two White Flint North Mail Stop T-8 F5 11545 Rockville Pike Rockville, MD 20852-2738 NRC Senior Resident Inspector Millstone Power Station

Attachment 1 DECOMMISSIONING FUNDING STATUS REPORT Millstone Power Station Unit 1 Dominion Nuclear Connecticut, Inc.

Serial No.12-094 Docket No. 50-245 Attachment 1 Page 1 of 2 DOMINION NUCLEAR CONNECTICUT, INC.

Decommissioning Funding Status Report Summary Information Table 1 Nuclear Decommissioning Funding Status Report for Millstone Unit 1 Summary Information as of 12/31/2011 (in millions)

Decommissioning Cost Estimate

$ 436.022 Remaining Decommissioning cost estimate in: 01/01/2012 Dollars Decommissioning Trust Funds

$ 321.039 Unit 1 Qualified Fund Balance as of: 12/31/2011

$ - Unit 1 Non-Qualified Fund Balance as of: 12/31/2011

$ 321.039 Total Decommissioning Fund Balance as of 12/31/2011 Inputs 2012 Start year of Analysis 4.41% Escalation Rate (2012 & Beyond) 6.41% After Tax Earnings - Long Term (assumes 2% Real Rate of Return)

Annual Expenditures Projected Annual Expenditures (see following table)

Serial No.12-094 Docket No. 50-245 Attachment 1 Page 2 of 2 DOMINION NUCLEAR CONNECTICUT, INC.

Decommissioning Funding Status Report Annual Earnings and Expenditures Table 2 Nuclear Decommissioning Funding Status Report for Millstone Unit 1 Annual Earnings and Expenditures starting 01/01/2012 (in millions)

Beginning Remaining End Remaining of Unit 1 Decom of Unit 1 Decom Year Projected Expenditures Year Expenditures Year Balance Earnings (i n future $) Balance in 01/01/2012 $

2012 $ 321.039 $ 20.451 $ 4.389 $ 337.101 $ 4.389 2013 $ 337.101 $ 21.466 $ 4.833 $ 353.734 $ 4.629 2014 $ 353.734 $ 22.535 $ 4.785 $ 371.484 $ 4.389 2015 $ 371.484 $ 23.601 $ 7.046 $ 388.038 $ 6.190 2016 $ 388.038 $ 24.713 $ 5.474 $ 407.278 $ 4.605 2017 $ 407.278 $ 25.896 $ 7.052 $ 426.122 $ 5.682 2018 $ 426.122 $ 27.050 $ 8.765 $ 444.408 $ 6.764 2019 $ 444.408 $ 28.267 $ 7.379 $ 465.296 $ 5.453 2020 $ 465.296 $ 29.592 $ 7.861 $ 487.026 $ 5.565 2021 $ 487.026 $ 30.982 $ 7.961 $ 510.048 $ 5.397 2022 $ 510.048 $ 32.466 $ 7.735 $ 534.780 $ 5.022 2023 $ 534.780 $ 34.053 $ 7.703 $ 561.130 $ 4.790 2024 $ 561.130 $ 35.732 $ 8.080 $ 588.782 $ 4.812 2025 $ 588.782 $ 37.153 $ 19.064 $ 606.871 $ 10.873 2026 $ 606.871 $ 38.565 $ 11.214 $ 634.222 $ 6.125 2027 $ 634.222 $ 40.347 $ 10.351 $ 664.217 $ 5.415 2028 $ 664.217 $ 41.833 $ 24.000 $ 682.050 $ 12.025 2029 $ 682.050 $ 43.565 $ 5.667 $ 719.947 $ 2.719 2030 $ 719.947 $ 46.089 $ 2.742 $ 763.294 $ 1.260 2031 $ 763.294 $ 48.866 $ 2.863 $ 809.297 $ 1.260 2032 $ 809.297 $ 51.812 $ 2.989 $ 858.119 $ 1.260 2033 $ 858.119 $ 54.939 $ 3.121 $ 909.937 $ 1.260 2034 $ 909.937 $ 58.258 $ 3.259 $ 964.937 $ 1.260 2035 $ 964.937 $ 61.781 $ 3.403 $ 1,023.315 $ 1.260 2036 $ 1,023.315 $ 65.521 $ 3.553 $ 1,085.283 $ 1.260 2037 $ 1,085.283 $ 69.491 $ 3.710 $ 1,151.064 $ 1.260 2038 $ 1,151.064 $ 73.704 $ 3.874 $ 1,220.894 $ 1.260 2039 $ 1,220.894 $ 78.178 $ 4.045 $ 1,295.027 $ 1.260 2040 $ 1,295.027 $ 82.927 $ 4.223 $ 1,373.731 $ 1.260 2041 $ 1,373.731 $ 87.969 $ 4.410 $ 1,457.290 $ 1.260 2042 $ 1,457.290 $ 93.322 $ 4.604 $ 1,546.008 $ 1.260 2043 $ 1,546.008 $ 98.924 $ 7.381 $ 1,637.551 $ 1.935 2044 $ 1,637.551 $ 104.403 $ 19.608 $ 1,722.346 $ 4.922 2045 $ 1,722.346 $ 109.761 $ 22.117 $ 1,809.990 $ 5.317 2046 $ 1,809.990 $ 115.916 $ 5.473 $ 1,920.434 $ 1.260 2047 $ 1,920.434 $ 122.992 $ 5.714 $ 2,037.712 $ 1.260 2048 $ 2,037.712 $ 130.507 $ 5.966 $ 2,162.252 $ 1.260 2049 $ 2,162.252 $ 138.486 $ 6.230 $ 2,294.508 $ 1.260 2050 $ 2,294.508 $ 146.119 $ 32.729 $ 2,407.899 $ 6.340 2051 $ 2,407.899 $ 140.982 $ 419.707 $ 2,129.173 $ 77.869 2052 $ 2,129.173 $ 116.212 $ 634.611 $ 1,610.775 $ 112.763 2053 $ 1,610.775 $ 93.408 $ 308.895 $ 1,395.288 $ 52.567 2054 $ 1,395.288 $ 81.378 $ 253.055 $ 1,223.611 $ 41.244 2055 $ 1,223.611 $ 77.616 $ 27.002 $ 1,274.224 $ 4.215 2056 $ 1,274.224 $ 81.241 $ 15.176 $ 1,340.290 $ 2.269 I '1 "  : I: 1.,,1i;

• 20581 $ 1,423.977 $ 91.333\ $ - $ 1,515.310 1$ -

Remaining U1 expenditures from 01/01/2012 through end of Decommissioning (in 2012 $) _

Rem.'**, U1 **"".'..... ("''' $) ~

Estimated Funds at end of Decommissioning (in 2012$) '.:' 6~~/::;~~n~:\::e