ML13091A074

Report of Status of Decommissioning Funding

ML13091A074
Person / Time
Site:	Summer
Issue date:	03/28/2013
From:	Crosby M Santee Cooper
To:	Document Control Desk, Office of Nuclear Reactor Regulation
References
Download: ML13091A074 (5)

Text

qsantee cooper March 28, 2013 Document Control Desk U. S. Nuclear Regulatory Commission Washington, D. C. 20555

Subject:

Virgil C. Summer Nuclear Station Docket No. 50/395 Operating License No. NPF-12 Report of Status of Decommissioning Funding

Dear Sir/Madam:

The South Carolina Public Service Authority (Authority) and South Carolina Electric & Gas Company (SCE&G) have ownership interests of one-third and two-thirds, respectively, in the Virgil C. Summer Nuclear Station (VCSNS). As provided in 10 CFR § 50.75 (f)(1), each power reactor licensee is required to report to the Nuclear Regulatory Commission (NRC) on a calendar year basis, beginning March 31, 1999, and every two years thereafter, the status of its decommissioning funding for each reactor or share of reactor it owns. SCE&G has advised the Authority that it will disclose the required information relative to its two-thirds ownership share in a separate submittal.

The Authority's one-third share using the NRC formula for the minimum funding required for license termination is approximately $165 million as of December 31, 2012. This liability is funded by payments to an external sinking fund as provided for in 10 CFR § 50.75. The escalated liability for license termination costs is expected to total $602 million, stated in dollars of the year of expenditure. The market value of the external fund was approximately $114 million as of December 31, 2012. (Please see Attachment 1.)

A site-specific decommissioning study completed in 2012 identified the total decommissioning costs for the site. Total site decommissioning includes license termination, spent fuel management and site restoration.

The total costs identified by the study are in excess of NRC formula for minimum funding requirements. The liability in excess of the NRC mininimum funding requirements is estimated by the Authority to be approximately $150 million as of December 31, 2012. The escalated liability is expected to be approximately $2.525 billion, stated in dollars of the year of expenditure. The market value of the Authority's internal fund, designated for spent fuel management and site restoration, was approximately $81 million as of December 3 1, 2012. (Please see Attachment 1.)

If there are any questions concerning this report, please contact me at (843) 761-4126.

Sincerely, Michael R. Crosby Vice President Nuclear Operations and Construction MRC:trw:tdt Attachment cc: Victor M. McCree Eva A. Brown NRC Resident Inspector One Riverwood Drive I Moncks Corner, SC 29461-2901 (843)761-8000 P.O. Box 2946101 I Moncks Corner, SC 29461-6101

Attachmuent 1 1(a). The minimum decommissioning fund estimate, pursuant to 10 CFR § 50.75 (b) and (c). $164,618,253 Base Amount for PWR between 1,200 MWt and 3,400 MWt Estimated Cost (Year X) = (1986 $ Base Cost) (AL, + BE, + CBj)

= ($100,520,000) 1(.65 x 2.332) + (.13 x 2.632) + (.22 x 13.885)}

= $493,854,760 Authority's one-third share of 2012 Estimated Cost $164,618,253 Where:

A .65 10 CFR § 50.75 (c)(2)

B = .13 10 CFR § 50.75 (c)(2)

C = .22 10 CFR § 50.75 (c)(2) 2.332 (Computed Below) 2.632 (Computed Below)

Px = 1.865 (Computed Below)

F, = 3.690 (Computed Below)

B, 13.885 (NUREG 1307 Rev. 15) 1986 $ Base Cost ($75,000,000 + .0088Pmillion)

($75,000,000 + 25,520,000)

$100,520,000 P = 2,900 MWt Base L, (Dec 2005) x ECI(Qtr 4 2012) / 100 1.98 x 117.8 / 100 2.332 Px = December 2012 Value / January 1986 Value 213.0 / 114.2 1.865 F, = December 2012 Value / January 1986 Value 302.6 / 82.0 3.690 E, {(.58P,) + (.42F,)}

{(.58 x 1.865) + (.42 x 3.690))

2.632 Fourth Quarter 2012 / December 2012 values in the following Bureau of Labor Statistics indices were used to compute NRC mninimum requirements:

Employment Cost Index - Total compensation, private industry, South region Series ID: CIU20100000002201 Producer Price Index - Commodities (Industrial electric power)

Series ID: wpu0543 Producer Price Index - Commodities (Light fuel oils)

Series ID: wpu0573 I of 1

Attachment 1 1(b). Escalation of the Authority's one-third share of the minimum funding requirement through the end of decommissioning.

Cost categories Labor, Equipment & Materials, Burial, and Other were estimated in a site-specific decommissioning study. These costs were escalated through the end of the decommissioning period based on various indices and estimates. Ultimate decommissioning costs to be funded firom the external trust are estimated at $601,574,160 in escalated dollars.

2. Market value of the external trust fund at December 31, 2012 for items included in 10 CFR § 50.75. $1 14.445.801

3. Schedule of annual amounts remaining to be collected for items in 10 CFR § 50.75.

Beginning Decommissioning Annual Ending Real Rates Year Balance Expenditures Deposits Earnings Balance of Return 2013 114,445,801 1,977,420 938,456 117,361,677 0.0082 2014 117,361,677 1,977,420 880,213 120,219,309 0.0075 2015 120,219,309 1,977,420 1,394,544 123,591,273 0.0116 2016 123,591,273 1,977,420 1,421,300 126,989,993 0.0115 2017 126,989,993 1,977,420 1,422,288 130,389,701 0.0112 2018 130,389,701 1,977,420 1,238,702 133,605,823 0.0095 2019 133,605,823 1,977,420 1,255,895 136,839,138 0.0094 2020 136,839,138 1,977,420 1,299,972 140,116,529 0.0095 2021. 140,116,529 1,977,420 1,387,154 143,481,103 0.0099 2022 143,481,103 1,977,420 1,434,811 146,893,334 0.0100 2023 146,893,334 1,977,420 1,498,312 150,369,066 0.0102 2024 150,369,066 1,977,420 1,518,728 153,865,214 0.0101 2025 153,865,214 1,977,420 1,538,652 157,381,286 0.0100 2026 157,381,286 1,977,420 1,542,337 160,901,042 0.0098 2027 160,901,042 1,977,420 1,560,740 164,439,202 0.0097 2028 164,439,202 1,977,420 1,578,616 167,995,239 0.0096 2029 167,995,239 1,977,420 1,579,155 171,551,814 0.0094 2030 171,551,814 1,977,420 1,595,432 175,124,666 0.0093 2031 175,124,666 1,977,420 1,611,147 178,713,233 0.0092 2032 178,713,233 1,977,420 1,608,419 182,299,072 0.0090 2033 182,299,072 1,977,420 1,622,462 185,898,954 0.0089 2034 185,898,954 1,977,420 1,617,321 189,493,695 0.0087 2035 189,493,695 1,977,420 1,629,646 193,100,760 0.0086 2036 193,100,760 1,977,420 1,622,046 196,700,227 0.0084 2037 196,700,227 1,977,420 1,632,612 200,310,259 0.0083 2038 200,310,259 1,977,420 1,622,513 203,910,192 0.0081 2039 203,910,192 1,977,420 1,631,282 207,518,893 0.0080 2040 207,518,893 1,977,420 1,618,647 211,114,961 0.0078 2041 211,114,961 1,977,420 1,625,585 214,717,966 0.0077 2042 214,717,966 9,798,706 1,536,894 206,456,155 0.0075 2043 206,456,155 23,516,893 1,353,751 184,293,012 0.0074 2044 184,293,012 23,516,893 1,157,588 161,933,707 0.0072 2045 161,933,707 23,516,893 982,759 139,399,573 0.0071 2046 139,399,573 23,516,893 799,590 116,682,270 0.0069 2 of 2

Attachmnent 1 2047 116,682,270 23,516,893 633,525 93,798,901 0.0068 2048 93,798,901 23,516,893 463,861 70,745,869 0.0066 2049 70,745,869 13,718,188 370,680 57,398,361 0.0065 Total 164,618,253 57,345,180 50,225,633

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

The plant will be decommissioned immediately upon license expiration (DECON alternative).

Costs will escalate in accordance with the estimated future behavior of the following four cost categories: labor (3.1%), equipment and materials (6.0%),

waste burial (2.9%) and other (5.0%). The schedule below shows weighted average escalation rates reflecting the above cost categories weighted by individual category costs over the sum of the four categories.

Waste vendors will be utilized.

The trust fund will accrue earnings in accordance with estimated effective yield (approximately 4.9% as shown below).

All necessary funds will be on deposit at the time the plant is shut down.

A B (A-B)

Projected Weighted Average Year Earning Rates Escalation Rates Real Rates of Return 2013 0.0455 0.0373 0.0082 2014 0.0449 0.0374 0.0075 2015 0.0491 0.0375 0.0116 2016 0.0491 0.0376 0.0115 2017 0.0489 0.0377 0.0112 2018 0.0474 0.0379 0.0095 2019 0.0474 0.0380 0.0094 2020 0.0476 0.0381 0.0095 2021 0.0481 0.0382 0.0099 2022 0.0484 0.0384 0.0100 2023 0.0487 0.0385 0.0102 2024 0.0487 0.0386 0.0101 2025 0.0487 0.0387 0.0100 2026 0.0487 0.0389 0.0098 2027 0.0487 0.0390 0.0097 2028 0.0487 0.0391 0.0096 2029 0.0487 0.0393 0.0094 2030 0.0487 0.0394 0.0093 2031 0.0487 0.0395 0.0092 2032 0.0487 0.0397 0.0090 2033 0.0487 0.0398 0.0089 2034 0.0487 0.0400 0.0087 2035 0.0487 0.0401 0.0086 3 of 3

P Attachment 1 2036 0.0487 0.0403 0.0084 2037 0.0487 0.0404 0.0083 2038 0.0487 0.0406 0.0081 2039 0.0487 0.0407 0.0080 2040 0.0487 0.0409 0.0078 2041 0.0487 0.0410 0.0077 2042 0.0487 0.0412 0.0075 2043 0.0487 0.0413 0.0074 2044 0.0487 0.0415 0.0072 2045 0.0487 0.0416 0.0071 2046 0.0487 0.0418 0.0069 2047 0.0487 0.0419 0.0068 2048 0.0487 0.0421 0.0066 2049 0.0487 0.0422 0.0065

5. Contracts upon which the licensee is relaying pursuant to 10 CFR § 50.75 (e) (1) (v).

None.

6. Modifications to the current funding assurance methods.

None.

7. Material changes to Trust Agreements.

None.

8. Authority's one-third share of the 2012 Site-Specific Study.

Year of 2012 Expenditure Dollars Dollars NRC Minimum Funding Requirement - License Termination (radiological decommissioning costs) (1) 164,618,253 601,574,160 Excess Site-Specific Study Costs (license termination, spent fuel management and site restoration costs) (2) 150,507,080 2,524,609,778 2012 Site-Specific Study Costs (license termination, spent fuel management and site restoration costs) (2) 315,125,333 3,126,183,938 (1) Expenditure years are 2042-2049 (2) Expenditure years are 2042-2096

9. Market value of the internal fund at December 31, 2012 for spent fuel management and site restoration $80,952,459 4 of 4