ML13095A010

NRC Decommissioning Funding Status Report

ML13095A010
Person / Time
Site:	Susquehanna
Issue date:	03/28/2013
From:	Colantoni C Allegheny Electric Cooperative
To:	Document Control Desk, Office of Nuclear Reactor Regulation
References
Download: ML13095A010 (8)

Text

<A Touchstone Energy'Cooperative ELECTRIC COOPERATIVE, INC.

212 LOCUST ST. e P.O. BOX 1266 e HARRISBURG, PA 17108-1266 ° PHONE 717/233-5704 e FAX 717/234-1309 Submitted pursuant to 10 CFR 50.75 March 28, 2013 U. S. Nuclear Regulatory Commission Document Control Desk Washington, DC 20555-0001 SUSQUEHANNA STEAM ELECTRIC STATION Docket Nos. 50-387 NRC DECOMMISSIONING FUNDING STATUS REPORT and 50-388 This letter provides decommissioning information for the Allegheny Electric Cooperative, Inc. (AEC) ten percent interest in Susquehanna Unit 1 and Unit 2 (SSES) as required by 10 CFR 50.75 "Reporting and Recordkeeping for Decommissioning Planning," section (f)(1).

Attachment 1 contains the AEC decommissioning funding status report at December 31, 2012, submitted biennially to comply with 10 CFR 50.75(f)(1).

If you have any questions regarding the decommissioning report, please direct them to the undersigned.

Sincerely, Craig A. Colantoni Vice President - Finance & Accounting Attachment 1: NRC Decommissioning Funding Status Report December 31, 2012 Copy:

NRC Region I Mr. P. W. Finney, NRC Sr. Resident Inspector Mr. J. A. Whited, NRC Project Manager Mr. L. J. Winker, DEP/BRP

Attachment 1 to NRC Decommissioning Funding Status Report December 31, 2012

Attachment 1 to PLA-6979 Page 2 of 3 Information is submitted to provide Financial Assurance Unit # 1 Unit #2

1. The minimum amount of decommissioning funds estimated to be required pursuant to 10 CFR 50.75 (b) and (c) at December 31, 2012. $69,160,500 $69,160,500 Allegheny Electric Cooperative, Inc.'s (AEC) calculation of the NRC minimum formula is reflected in Exhibit 1 (behind this Attachment).

2. The amount accumulated at the end of the calendar year preceding the date of the report, net of taxes paid on realized gains and losses, for items included in 10 CFR 50.75 (b) and (c).

Market Value at December 31, 2012 $45,058,138 $45,058,138

3. See Exhibit 2 for a schedule of the annual amounts remaining to be collected.

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

Estimated inflation rate for decommissioning costs 5.0% 5.0%

Estimated earnings rate on decommissioning funds 7.0% 7.0%

per 10 CFR 50.75(e)(1)(ii) which are credited up to the time of permanent termination of operations along with a pro-rata credit during the dismantlement period.

Rates of other factors used in funding projections None None

5. Any power sale contracts upon which licensee is (see below) (see below) relying to provide financial assurance.

AEC is the wholesale power supplier for the 14 rural electric cooperatives in Pennsylvania and New Jersey. AEC has wholesale power contracts with its 14 member distribution cooperatives, which is the source for funding the Trust Fund.

Attachment 1 to PLA-6979 Page 3 of 3 Information is submitted to provide Financial Assurance Unit # 1 Unit #2

6. Modifications to licensee's method of providing None None financial assurance since previous report.

7. Material changes to trust agreement. None None

Attachment I to PLA-6979 Exhibit I Page 1 of 3 Calculation of Escalation Factors Used in Computation of Minimum Financial Assurance Amount for Decommissioning Susquehanna Steam Electric Station Units land 2 Boiling Water Reactor (BWR)

Escalation Factor Formula - 0.65(L) + 0.13(E) + 0.22(B)

Escalation = (.65 x 2.547) + (.13 x 2.704) + (.22 x 14.160)

Escalation = (1.656 + .352 + 3.115) = 5.123 (L) - Labor - (Bureau of Labor Statistics, Table 6, Compensation, Employment Cost Index, for total compensation, private industry workers, by bargaining status, region and area size)

Northeast region - December 2012 Index Number 117.9 December 2005 Index Number 100.0 December 2005 Base 2.16 L= 117.9 times 2.16 Equals 2.547 100.0 (E) - Energy - (Producer Price Index Commodities, Series ID: WPU0543 and WPU0573)

E= (.54P + .46F)

E= (.54 x 1.865) + (.46 x 3.690)

E= 1.007 + 1.697 = 2.704 P - Industrial Power, 500 kW Demand - (Commodity 0543)

December 2012 Index Number 213.0 January 1986 Index Number 114.2 (1)

P= 213.0 equals 1.865 114.2

Attachment 1 to PLA-6979 Exhibit 1 Page 2 of 3 F - Light Fuel Oils - (Commodity 0573)

December 2012 Index Number 302.6 January 1986 Index Number 82.0 302.6 equals 3.690 82.0 (B) Waste Burial NUREG - 1307, Rev. 15, "NRC Report on Waste Burial Charges" Table 2.1 Generic LLW Disposal Site, Combination of Compact-Affiliated and Non-Compact Facility 14.160 (1) Represents the national base value of P at January 1986. The base value of P is no longer determined on a regional basis.

Attachment 1 to PLA-6979 Exhibit 1 Page 3 of 3 Allegheny Electric Cooperative, Inc.

Computation of Minimum Financial Assurance Amount for Decommissioning Susquehanna Steam Electric Station Units 1 and 2 Unit 1 Unit 2 Base amount for BWR greater than 3,400 MWt = $135 million The Power Level of Unit 1 = 3,952 MWt and Unit 2 = 3,952 MWt $135,000,000 $135,000,000 Ownership Percentage 10% 10%

Base Amount per Unit $13,500,000 $13,500,000 Escalation Factor 5.123 5.123 Escalated Amount per Unit $69,160,500 $69,160,500 Total Escalated Amount (Unit 1 + Unit 2) $138,321,000

Attachment 1 to PLA-6979 Exhibit 2 Page 1 of 1 The funding schedule set forth below is a significant change from the funding schedule in the last filing report dated April 11, 2011. The primary reason for the change is due to the fact that AEC added approximately $26.6 million of funds into the Trust Fund during December 2011. The future funding schedule set forth below has been revised to reflect the additional infusion of funds as well as the inflation and earnings assumptions anticipated herein. AEC reviews the actual cost inflation and earnings performance periodically and adjusts the future funding schedule accordingly.

Year Unit 1 Unit 2 Total 2013 $300,000 $300,000 $600,000 2014 $309,000 $309,000 $618,000 2015 $318,270 $318,270 $636,540 2016 $327,818 $327,818 $655,636 2017 $337,653 $337,653 $675,305 2018 $347,782 $347,782 $695,564 2019 $358,216 $358,216 $716,431 2020 $368,962 $368,962 $737,924 2021 $380,031 $380,031 $760,062 2022 $391,432 $391,432 $782,864 2023 $403,175 $403,175 $806,350 2024 $415,270 $415,270 $830,540 2025 $427,728 $427,728 $855,457 2026 $440,560 $440,560 $881,120 2027 $453,777 $453,777 $907,554 2028 $467,390 $467,390 $934,780 2029 $481,412 $481,412 $962,824 2030 $495,854 $495,854 $991,709 2031 $510,730 $510,730 $1,021,460 2032 $526,052 $526,052 $1,052,104 2033 $541,833 $541,833 $1,083,667 2034 $558,088 $558,088 $1,116,177 2035 $574,831 $574,831 $1,149,662 2036 $592,076 $592,076 $1,184,152 2037 $609,838 $609,838 $1,219,676 2038 $628,133 $628,133 $1,256,267 2039 $646,977 $646,977 $1,293,955 2040 $666,387 $666,387 $1,332,773 2041 $686,378 $686,378 $1,372,757 2042 $706,970 $706,970 $1,413,939 2043 $0 $0 $0 2044 $0 $0 $0 2013-2044 $14,272,625 $14,272,625 $28,545,249