ML13093A372
| ML13093A372 | |
| Person / Time | |
|---|---|
| Site: | Browns Ferry, Watts Bar, Sequoyah  |
| Issue date: | 04/01/2013 |
| From: | James Shea Tennessee Valley Authority |
| To: | Document Control Desk, Office of Nuclear Reactor Regulation |
| References | |
| Download: ML13093A372 (5) | |
Text
Tennessee Valley Authority, 1101 Market Street, Chattanooga, Tennessee 37402 April 1, 2013 10 CFR 50.75(f)(1)
ATTN: Document Control Desk U.S. Nuclear Regulatory Commission Washington, D.C. 20555-0001 Browns Ferry Nuclear Plant, Units 1, 2, and 3 Renewed Facility Operating License Nos. DPR-33, DPR-52, and DPR-68 NRC Docket Nos. 50-259, 50-260, and 50-296 Sequoyah Nuclear Plant, Units 1 and 2 Facility Operating License Nos. DPR-77 and DPR-79 NRC Docket Nos. 50-327 and 50-328 Watts Bar Nuclear Plant, Unit 1 Facility Operating License No. NPF-90 NRC Docket No. 50-390
Subject:
Decommissioning Funding Status Report
References:
Browns Ferry (BFN) TAC Nos. ME0491, ME0492 and ME0493); Sequoyah (SQN) (TAC Nos. ME0571 and ME0572); and Watts Bar (WBN) (TAC No.
ME0587) Nuclear Plants," dated March 31, 2009 [ML090920215]
- 2. Letter from TVA to NRC, "Decommissioning Funding Assurance," dated September 4, 2009 [ML092520020]
- 3. Letter from NRC to TVA, "Browns Ferry Nuclear Plant, Units 1, 2, and 3; Sequoyah Nuclear Plant, Units 1 and 2; Watts Bar Nuclear Plant, Unit 1 -
Status of Decommissioning Funding Assurance (TAC Nos. ME0491, ME0492, ME0493, ME0571, ME0572, and ME0587)," dated December 10, 2009 [ML093380046]
- 4. Letter from TVA to NRC, "Decommissioning Funding Status Report," dated March 31, 2011 [ML110960073]
Printed on recycled paper
U. S. Nuclear Regulatory Commission Page 2 April 1, 2013 In accordance with the requirements of 10 CFR 50.75(f)(1), Tennessee Valley Authority (TVA) is reporting on the status of decommissioning funding for Browns Ferry Nuclear Plant (BFN),
Units 1, 2, and 3; Sequoyah Nuclear Plant (SQN), Units 1 and 2; and Watts Bar Nuclear Plant (WBN), Unit 1. The reporting requirements and corresponding TVA information are provided below. As provided for in 10 CFR 50.4, since the due date for this submittal falls on a Sunday, TVA is submitting this report on the next Federal working day.
- 1. The amount of decommissioning funds estimated to be required pursuant to 10 CFR 50.75(b) and (c):
Decommissioning cost estimates were calculated using the formulas provided in NUREG-1 307, Revision 15, "Report on Waste Burial Charges," utilizing the waste burial adjustment factors for Generic Low-Level Waste (LLW) Disposal Site and Combination of Compact-Affiliated and Non-Compact Facility. Bureau of Labor Statistics indices for the end of the 2012 calendar year were taken from the sources referenced by NUREG-1 307.
The calculated estimates for the end of calendar year (CY) 2012 are provided in Table 1 below. The dollar amounts shown in Table 1 have been rounded to the nearest hundred thousand dollars.
Table 1. Decommissioning Cost Estimates for end of CY 2012 Plant Number Cost per Unit Total Plant Cost of Units
($, in millions)
($, in millions)
BFN 3
672.7 2018.1 SQN 2
515.9 1031.7 WBN 1
515.9 515.9
- 2. The amount accumulated in the TVA decommissioning fund at the end of the calendar year 2012 for the items included in 10 CFR 50.75(b) and (c):
TVA's decommissioning fund balances at the end of CY 2012 are provided below in Table 2. The dollar amounts shown in Table 2 have been rounded to the nearest dollar.
Table 2. Decommissioning Trust Fund Balances Plant, Unit Decommissioning Fund Balance
($)
BFN, Unit 1 192,595,682 BFN, Unit 2 184,144,248 BFN, Unit 3 165,806,312 SQN, Unit 1 265,571,393 SQN, Unit 2 252,694,808 WBN, Unit 1 123,521,444
U. S. Nuclear Regulatory Commission Page 3 April 1, 2013
- 3. A schedule of the annual amounts remaining to be collected for items in 10 CFR 50.75(b) and (c):
By letter dated March 31, 2009 (Reference 1), TVA reported that due to a downturn which resulted in lower market valuations for many investments held in TVA's decommissioning trust fund, the decommissioning trust fund balances for TVA's BFN, SQN, and WBN were below Nuclear Regulatory Commission (NRC) minimum required amounts. Subsequently, by letter dated September 4, 2009 (Reference 2), TVA provided the NRC with the details of a plan which utilized an external sinking fund approach to provide decommissioning funding assurance for each nuclear unit at the end of its respective term of licensed operation. The NRC staff reviewed TVA's plan and determined that it provides reasonable assurance of adequate decommissioning funding at the time permanent termination of operations is expected (Reference 3). By letter dated March 31, 2011 (Reference 4), as part of the biennial decommissioning funding status report, TVA provided updates to the plan included in Reference 2 based on the minimum formula amounts (10 CFR 50.75(c))
for each reactor at the end of CY 2010. Since the fund balances at the end of CYs 2010 and 2011 exceeded the plan amounts for each reactor specified in Reference 4 (escalated for 2011), no contributions to the decommissioning trust funds were made in 2010 or 2011.
The Enclosure to this letter provides a further update of TVA's plan for providing decommissioning funding for each of its operating nuclear reactors based on the cost estimates at the end of CY 2012. This plan constitutes the schedule of the annual amounts remaining to be collected for items in 10 CFR 50.75(b) and (c). TVA will continue to follow the plan reflected in the Enclosure, as updated. TVA's current fund balances shown in Table 2 are in excess of the plan amounts for the end of CY 2012 shown in the Enclosure. Therefore, no contributions have been made as a result of the fund balances at the end of CY 2012.
- 4. Assumptions used regarding rates of escalation in decommissioning costs, rates of earnings on decommissioning funds, and rates of other factors used in funding projections:
The assumed escalation in decommissioning costs is four percent.
TVA assumed a projected annual real rate of return on decommissioning funds of five percent, as authorized by the TVA Board of Directors, TVA's rate-making authority.
- 5. Any contracts upon which the licensee is relying pursuant to 10 CFR 50. 75(e)(1)(v):
None.
- 6. Any modifications occurring to a licensee's current method of providing financial assurance since the last submitted report:
None.
U. S. Nuclear Regulatory Commission Page 4 April 1, 2013
- 7. Any material changes to trust agreements.
None.
If you have any questions concerning this matter, please contact Josh Perrel at 423-751-7737.
Respectfully, Joseph W. Shea Vice President, Nuclear Licensing
Enclosure:
Updated Projected Decommissioning Funding Levels for TVA Operating Units cc:
NRC Regional Administrator - Region II NRC Senior Resident Inspector - Browns Ferry Nuclear Plant NRC Senior Resident Inspector - Sequoyah Nuclear Plant NRC Senior Resident Inspector - Watts Bar Nuclear Plant
ENCLOSURE Updated Projected Decommissioning Funding Levels for TVA Operating Units*
lwReal "a"E,,ý'TR W,".T-Q~
m
- g Annual ted Annual Projected Annual Projected Annual Projected Annual Projectedl Annual Projected Annual Funding Fund Annual Funding Fund Annual Funding Fund Annual Funding Fund Annual Funding Fund Annual Funding Fund sburserment Assurance Assets ADisbursement Asurance Balance Disbursement Assurance Balance I Disbursement IAssurance Ralance I Disbumemh n
t Aaumnr.
RanrcA l fliah-Amrrt A
-nw t
R 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 2036 2037 2038 2039 2040 2041 2042 2043 2044
$4.5
$4.5
$4.5
$4.5
$4.5
$4.5
$4.5
$4.5
$4.5
$4.5
$4ý5
$4.5
$4.5
$4.5
$4.5
$4.5
$4.5
$4k5
$4.5
$4.5
,W7'0
$167.0
$179.9
$193.4
$207.6
$222.4
$238.1
$254.5
$271.7
$289.8
$308.8
$328.8
$349.7
$371.7
$394.8
$419.0
$444.5
$471.2
$499.3
$528.8
$558.9
$4.4
$4.4
$4.4
$4.4
$4.4
$4.4
$4.4
$4.4
$44
$4.4
$4.4
$4.4
$4.4
$4.4
$4.4
$4.4
$4.4
$4.4
$4.4
$4.4
$4.4
$160.6
$173.0
$186.1
$199.9
$214.3
$229.4
$245.4
$262.1
$279.6
$298.0
$317.3
$337.7
$359.0
$381.4
$404.9
$429.5
$455.4
$482.7
$511.2
$541.2
$558.9
$3.9
$39
$3.9
$3.9
$3.9
$3.9
$3.9
$3.9
$3.9
$3.9
$3.9
$3.9
$3.9
$3.9
$39
$3.9
$3.9
$3.9
$3.9
$3.9
$3.9
$3.9
$3.9 ngs
$144.2
$155.4
$167.0
$179.3
$192.2
$205.7
$219.9
$234.8
$250.4
$266.9
$284.1
$302.2
$321.2
$341.2
$362.2
$384.2
$407.3
$431.6
$457.1
$483.8
$511.9
$541.4
$558.9
$113.8
$672.7
$12.6
$12.6
$12.6
$12.6
$12.6
$12.6
$12.6
$2601
$285.7
$312.6
$340.9
$370.6
$401.7
$428.6
$11.2
$11.2
$11.2
$11.2
$11.2
$11.2
$11.2
$11.2
$243.8
$267.3
$291.9
$317.7
$344.8
$373.3
$403.2
$428.6 Fractional Yr.
Fractional Yr.
Additional Earnings
$87.3
$515.9
$515.9 Additional Earnings A87$ 3
$515.9 515.9
$3.5
$3.5
$3.5
$3.5
$3.5
$3.5
$3.5
$3.5
$3.5
$3.5
$35
$3.5
$3.5
$3.5
$3.5
$3.5
$3.5
$3.5
$3.5
$3.5
$3.5
$110.0
$119.0
$128.4
$138.4
$148.8
$159.7
$171.2
$183.3
$196.0
$209.3
$223.2
$237.9
$253.3
$269.4
$286.4
$304.2
$323.0
$342.6
$363.3
$384.9
$407.7
$428.6 Fractional Yr.
Fractional Yr.
Additional Earings
$113.8
$672.7 i
$672.7 Additional Earnings
$113.8 Fractional Yr.
$672.7
$672.7 Fractional Yr.
Additional Earr
$672.7 Additional Earnings
$87.3
$515.9 I
$515.9 Total
$672.7 1
1
$672.7 [ I
$672.7 I
$515.9 1 _
1 $515.9 I I $515.9 1 I
- ALL DOLLARS IN MILLIONS