NOC-AE-13002985, Financial Assurance for Decommissioning - 2013 Update

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Financial Assurance for Decommissioning - 2013 Update
ML13142A196
Person / Time
Site: South Texas  STP Nuclear Operating Company icon.png
Issue date: 04/25/2013
From: Harrison G
South Texas
To:
Document Control Desk, Office of Nuclear Reactor Regulation
References
NOC-AE-13002985, D57, G25, STI: 33674706
Download: ML13142A196 (15)
v • d • e


Text

Nuclear Operating Company South Texas Pro/ect Electric GeneratingStation PO. Bo 289 Wadsworth, Tewas 77483 AAAA April 25, 2013 NOC-AE-1 3002985 File No.: D57, G25 10 CFR 50.75 U. S. Nuclear Regulatory Commission Attention: Document Control Desk Washington, DC 20555-0001 South Texas Project Units 1 and 2 Docket Nos. STN 50-498, STN 50-499 Financial Assurance for Decommissionina - 2013 Update Pursuant to 10 CFR 50.75(f)(1), STP Nuclear Operating Company (STPNOC) submits the attached status reports regarding funds available, effective December 31, 2012, for decommissioning South Texas Project Units 1 and 2. The data are assembled by the individual co-owners of the South Texas Project:

" NRG South Texas LP;

  • City Public Service Board of San Antonio; and

" City of Austin - Austin Energy.

The attached reports provide the following information for each co-owner:

  • Estimated amount of decommissioning funds required;
  • Amount accumulated by December 31, 2012;
  • A schedule of the annual amounts remaining to be collected;
  • Assumptions for rates of escalation in decommissioning cost, and for rates used in funding projections; 0 Contracts upon which the owners rely pursuant to 10 CFR 50.75(e)(1)(v);

0 Modifications to method of providing financial fund assurance; and

  • Material changes to trust agreements.

This letter contains no NRC commitments.

If there are any questions, please contact either Jim Morris at (361) 972-8652 or me at (361) 972-8074. / .

Gorge trison General Manager, Financial Services jrm Attachments:

1. Financial Assurance for Decommissioning - NRG South Texas LP
2. Financial Assurance for Decommissioning - City Public Service Board of San Antonio
3. Financial Assurance for Decommissioning - City of Austin - Austin Energy STI: 33674706 A/dO

NOC-AE-1 3002985 Page 2 of 2 cc:

(paper copy) (electronic copy)

Regional Administrator, Region IV A. H. Gutterman, Esquire U. S. Nuclear Regulatory Commission Morgan, Lewis & Bockius LLP 1600 East Lamar Boulevard Arlington, TX 76011-4511 Balwant K. Singal U. S. Nuclear Regulatory Commission Balwant K. Singal John Ragan Senior Project Manager Chris O'Hara U.S. Nuclear Regulatory Commission Jim von Suskil One White Flint North (MS 8 B13) NRG South Texas LP 11555 Rockville Pike Rockville, MD 20852 NRC Resident Inspector Kevin Polio U. S. Nuclear Regulatory Commission Richard Pefia P. O. Box 289, Mail Code: MN116 City Public Service Wadsworth, TX 77483 C. M. Canady Peter Nemeth City of Austin Crain Caton & James, P.C.

Electric Utility Department 721 Barton Springs Road C. Mele Austin, TX 78704 City of Austin Richard A. Ratliff Alice Rogers Texas Department of State Health Services

ATTACHMENT 1 SOUTH TEXAS PROJECT FINANCIAL ASSURANCE FOR DECOMMISSIONING 2013 UPDATE NRG SOUTH TEXAS LP

Attachment 1 NOC-AE-1 3002985 Page 1 of 4 FINANCIAL ASSURANCE FOR DECOMMISSIONING NRG South Texas LP 13.2% Ownership of South Texas Project Unit 1 Pursuant to 10 CFR 50.75(f)(1), each power reactor licensee is required to report to the NRC on a calendar year basis, beginning on March 31, 1999, and every two years thereafter, on the status of its decommissioning funding for each reactor or share of reactor it owns. The requested information is provided below.

1. Minimum decommissioning fund estimate, Total Required: $68,092,531 pursuant to 10 CFR 50.75(b) and (c)1 :
2. Amount accumulated at the end of the calendar Amount Accumulated 2: $44,013,342 year preceding the date of the report for items included in 10 CFR 50.75(b) and (c):
3. Schedule of the annual amounts remaining to be Amount Remaining 3: $18,365,688 collected for items in 10 CFR 50.75(b) and (c):

Number of Years to Collect: 15

4. Assumptions used regarding escalation in Escalation Rate: 2.713%

decommissioning cost, rates of earnings on decommissioning funds, and rates of other Earnings Rate: 5.02% - 7.01%

factors used in funding projections:

5. Contracts upon which the licensee is relying None pursuant to 10 CFR 50.75(e)(1)(v):
6. Modifications to a licensee's current method None providing financial assurance occurring since the last submitted report:
7. Material changes to trust agreements: None
1. The NRC formulas in section 10 CFR 50.75(c) include only those decommissioning costs incurred by licensees to remove a facility or site safely from service, and reduce residual radioactivity to levels that permit: (1) release of the property for unrestricted use and termination of the license; or (2) release of the property under restricted conditions and termination of the license.
2. By Order dated October 10, 2008 in PUCT Docket No. 35772, NRG South Texas LP was granted approval to establish a separate spent fuel management subaccount. By Order dated July 13, 2009 in PUCT Docket No. 36796, NRG South Texas was granted approval to establish a separate subaccount for pre-shutdown disposal of large components. The amounts allocable to the spent fuel management and pre-shutdown disposal subaccounts are not included in the reported amount. The reported amount includes funds accumulated based upon a site-specific study that includes license termination and other costs.
3. Target amounts to be collected were established by the PUCT-approved separate non-bypassable decommissioning charges established in PUCT Tariff Control No. 31271. Actual collections will vary but the charges are intended to produce the targeted annual collection amounts established in PUCT Docket No. 35772. Collections are apportioned between the spent fuel management subaccount (-27.5%) and the primary account for 10CFR50.75(c) costs (-72.5%).

Attachment 1 NOC-AE-1 3002985 Page 2 of 4 FINANCIAL ASSURANCE FOR DECOMMISSIONING NRG South Texas LP 30.8% Ownership of South Texas Project Unit 1 Pursuant to 10 CFR 50.75(f)(1), each power reactor licensee is required to report to the NRC on a calendar year basis, beginning on March 31, 1999, and every two years thereafter, on the status of its decommissioning funding for each reactor or share of reactor it owns. The requested information is provided below.

1. Minimum decommissioning fund estimate, Total Required: $158,882,572 pursuant to 10 CFR 50.75(b) and (c)':
2. Amount accumulated at the end of the calendar Amount Accumulated 2 : $106,872,170 year preceding the date of the report for items included in 10 CFR 50.75(b) and (c):
3. Schedule of the annual amounts remaining to be Amount Remaining 3 : $29,790,455 collected for items in 10 CFR 50.75(b) and (c):

Number of Years to Collect: 15

4. Assumptions used regarding escalation in Escalation Rate: 2.713%

decommissioning cost, rates of earnings on decommissioning funds, and rates of other Earnings Rate: 5.02% - 7.01%

factors used in funding projections:

5. Contracts upon which the licensee is relying None pursuant to 10 CFR 50.75(e)(1)(v):
6. Modifications to a licensee's current method None providing financial assurance occurring since the last submitted report:
7. Material changes to trust agreements: None
1. The NRC formulas in section 10 CFR 50.75(c) include only those decommissioning costs incurred by licensees to remove a facility or site safely from service, and reduce residual radioactivity to levels that permit: (1) release of the property for unrestricted use and termination of the license; or (2) release of the property under restricted conditions and termination of the license.
2. By Order dated October 10, 2008 in PUCT Docket No. 35772, NRG South Texas LP was granted approval to establish a separate spent fuel management subaccount. By Order dated July 13, 2009 in PUCT Docket No. 36796, NRG South Texas was granted approval to establish a separate subaccount for pre-shutdown disposal of large components. The amounts allocable to the spent fuel management and pre-shutdown disposal subaccounts are not included in the reported amount. The reported amount includes funds accumulated based upon a site-specific study that includes license termination and other costs.
3. Target amounts to be collected were established by the PUCT-approved separate non-bypassable decommissioning charges established in PUCT Tariff Control No. 31271. Actual collections will vary but the charges are intended to produce the targeted annual collection amounts established in PUCT Docket No. 35772. Collections are apportioned between the spent fuel management subaccount (-27.5%) and the primary account for 10CFR50.75(c) costs (-72.5%).

Attachment 1 NOC-AE-1 3002985 Page 3 of 4 FINANCIAL ASSURANCE FOR DECOMMISSIONING NRG South Texas LP 13.2% Ownership of South Texas Project Unit 2 Pursuant to 10 CFR 50.75(f)(1), each power reactor licensee is required to report to the NRC on a calendar year basis, beginning on March 31, 1999, and every two years thereafter, on the status of its decommissioning funding for each reactor or share of reactor it owns. The requested information is provided below.

1. Minimum decommissioning fund estimate, Total Required: $68,092,531 pursuant to 10 CFR 50.75(b) and (c)1 :
2. Amount accumulated at the end of the calendar Amount Accumulated 2: $53,808,756 year preceding the date of the report for items included in 10 CFR 50.75(b) and (c):
3. Schedule of the annual amounts remaining to be Amount Remaining 3 : $14,960,632 collected for items in 10 CFR 50.75(b) and (c):

Number of Years to Collect: 16

4. Assumptions used regarding escalation in Escalation Rate: 2.727%

decommissioning cost, rates of earnings on decommissioning funds, and rates of other Earnings Rate: 5.02% - 7.01%

factors used in funding projections:

5. Contracts upon which the licensee is relying None pursuant to 10 CFR 50.75(e)(1 )(v):
6. Modifications to a licensee's current method None providing financial assurance occurring since the last submitted report:
7. Material changes to trust agreements: None 1 The NRC formulas in section 10 CFR 50.75(c) include only those decommissioning costs incurred by licensees to remove a facility or site safely from service, and reduce residual radioactivity to levels that permit: (1) release of the property for unrestricted use and termination of the license; or (2) release of the property under restricted conditions and termination of the license.
2. By Order dated October 10, 2008 in PUCT Docket No. 35772, NRG South Texas LP was granted approval to establish a separate spent fuel management subaccount. By Order dated July 13, 2009 in PUCT Docket No. 36796, NRG South Texas was granted approval to establish a separate subaccount for pre-shutdown disposal of large components. The amounts allocable to the spent fuel management and pre-shutdown disposal subaccounts are not included in the reported amount. The reported amount includes funds accumulated based upon a site-specific study that includes license termination and other costs.
3. Target amounts to be collected were established by the PUCT-approved separate non-bypassable decommissioning charges established in PUCT Tariff Control No. 31271. Actual collections will vary but the charges are intended to produce the targeted annual collection amounts established in PUCT Docket No. 35772. Collections are being deposited on a priority basis in the large component disposal subaccount until it becomes fully funded. Thereafter, collections are currently projected to be apportioned between the spent fuel management subaccount (-24.3%) and the primary account for 10CFR50.75(c) costs (-75.7%). However, further proceedings of the PUCT may change this.

Attachment 1 NOC-AE-1 3002985 Page 4 of 4 FINANCIAL ASSURANCE FOR DECOMMISSIONING NRG South Texas LP 30.8% Ownership of South Texas Project Unit 2 Pursuant to 10 CFR 50.75(f)(1), each power reactor licensee is required to report to the NRC on a calendar year basis, beginning on March 31, 1999, and every two years thereafter, on the status of its decommissioning funding for each reactor or share of reactor it owns. The requested information is provided below.

1. Minimum decommissioning fund estimate, Total Required: $158,882,572 pursuant to 10 CFR 50.75(b) and (c)1 :
2. Amount accumulated at the end of the calendar Amount Accumulated : $138,057,486 year preceding the date of the report for items included in 10 CFR 50.75(b) and (c):
3. Schedule of the annual amounts remaining to be Amount Remaining 3 : $9,588,514 collected for items in 10 CFR 50.75(b) and (c):

Number of Years to Collect: 16

4. Assumptions used regarding escalation in Escalation Rate: 2.727%

decommissioning cost, rates of earnings on decommissioning funds, and rates of other Earnings Rate: 5.02% - 7.01%

factors used in funding projections:

5. Contracts upon which the licensee is relying None pursuant to 10 CFR 50.75(e)(1)(v):
6. Modifications to a licensee's current method None providing financial assurance occurring since the last submitted report:
7. Material changes to trust agreements: None
1. The NRC formulas in section 10 CFR 50.75(c) include only those decommissioning costs incurred by licensees to remove a facility or site safely from service, and reduce residual radioactivity to levels that permit: (1) release of the property for unrestricted use and termination of the license; or (2) release of the property under restricted conditions and termination of the license.
2. By Order dated October 10, 2008 in PUCT Docket No. 35772, NRG South Texas LP was granted approval to establish a separate spent fuel management subaccount. By Order dated July 13, 2009 in PUCT Docket No. 36796, NRG South Texas was granted approval to establish a separate subaccount for pre-shutdown disposal of large components. The amounts allocable to the spent fuel management and pre-shutdown disposal subaccounts are not included in the reported amount. The reported amount includes funds accumulated based upon a site-specific study that includes license termination and other costs.
3. Target amounts to be collected were established by the PUCT-approved separate non-bypassable decommissioning charges established in PUCT Tariff Control No. 31271. Actual collections will vary but the charges are intended to produce the targeted annual collection amounts established in PUCT Docket No. 35772. Collections are apportioned between the spent fuel management subaccount (-24.3%) and the primary account for 10CFR50.75(c) costs (-75.7%).

ATTACHMENT 2 SOUTH TEXAS PROJECT FINANCIAL ASSURANCE FOR DECOMMISSIONING 2013 UPDATE CITY PUBLIC SERVICE BOARD OF SAN ANTONIO

Attachment 2 NOC-AE-1 3002985 Page 1 of 4 FINANCIAL ASSURANCE FOR DECOMMISSIONING City Public Service Board of San Antonio 12% Ownership of South Texas Project Unit 1 Pursuant to 10 CFR 50.75(f)(1), each power reactor licensee is required to report to the NRC on a calendar year basis, beginning on March 31, 1999, and every two years thereafter, on the status of its decommissioning funding for each reactor or share of reactor it owns. The requested information is provided below.

1. Minimum decommissioning fund estimate, Total Required: $61,610,573 pursuant to 10 CFR 50.75(b) and (c)1 :
2. Amount accumulated at the end of the calendar Amount Accumulated2: $37,362,062 year preceding the date of the report for items included in 10 CFR 50.75(b) and (c):
3. Schedule of the annual amounts remaining to be Amount Remaining 3: $0 collected for items in 10 CFR 50.75(b) and (c):

Number of Years to Collect: 15

4. Assumptions used regarding escalation in Escalation Rate: 2.713%

decommissioning cost, rates of earnings on decommissioning funds, and rates of other Earnings Rate: 7.3%

factors used in funding projections:

5. Contracts upon which the licensee is relying None pursuant to 10 CFR 50.75(e)(1 )(v):
6. Modifications to a licensee's current method None providing financial assurance occurring since the last submitted report:
7. Material changes to trust agreements: The Master Trust Agreement was revised effective January 1, 2011, in accordance with a Public Utility Commission of Texas (PUCT) order authorizing transfer of funds from Unit 1 to a spent fuel subaccount to be used for fuel-related costs incurred prior to and after shutdown commences.

Additionally, the Master Trust Agreement was revised to allow for creation of a pre-shutdown decommissioning cost subaccount to fund large component replacement and disposal costs.

1. The NRC formulas in 10 CFR 50.75(c) include only those decommissioning costs incurred by licensees to remove a facility or site safely from service, and reduce residual radioactivity to levels that permit: (1) release of the property for unrestricted use and termination of the license; or (2) release of the property under restricted conditions and termination of the license. The cost of dismantling or demolishing non-radiological systems and structures is not included in NRC decommissioning cost estimates. The costs of managing and storing spent fuel on site until transfer to the Department of Energy are not included in the cost formulas.
2. By Order dated November 20, 2008, in PUCT Docket No. 35786, CPS Energy was granted approval to establish separate spent fuel management and pre-shutdown activities subaccounts. The amounts allocable to these subaccounts are not included in the reported amount. The reported amount includes funds accumulated based upon a site-specific study that includes license termination and other costs.
3. CPS Energy estimates that the Trust is currently fully funded, based on the 2008 decommissioning cost study and updated escalation rates. Additional contributions ended December 31, 2008. If future estimates indicate that further funding may be required, CPS Energy would be able to apply to the PUCT to seek further funding for NRC license termination costs through cost-of-service recovery authorized by Texas law.

Attachment 2 NOC-AE-1 3002985 Page 2 of 4 FINANCIAL ASSURANCE FOR DECOMMISSIONING City Public Service Board of San Antonio 28% Ownership of South Texas Project Unit I Pursuant to 10 CFR 50.75(f)(1), each power reactor licensee is required to report to the NRC on a calendar year basis, beginning on March 31, 1999, and every two years thereafter, on the status of its decommissioning funding for each reactor or share of reactor it owns. The requested information is provided below.

1. Minimum decommissioning fund estimate, Total Required: $143,758,164 pursuant to 10 CFR 50.75(b) and (c)1 :
2. Amount accumulated at the end of the calendar Amount Accumulated2 $98,977,664 year preceding the date of the report for items included in 10 CFR 50.75(b) and (c):
3. Schedule of the annual amounts remaining to be Amount Remaining 3: $0 collected for items in 10 CFR 50.75(b) and (c):

Number of Years to Collect: 15

4. Assumptions used regarding escalation in Escalation Rate: 2.713%

decommissioning cost, rates of earnings on decommissioning funds, and rates of other Earnings Rate:

factors used in funding projections: 7.3%

5. Contracts upon which the licensee is relying None pursuant to 10 CFR 50.75(e)(1 )(v):
6. Modifications to a licensee's current method None providing financial assurance occurring since the last submitted report:
7. Material changes to trust agreements: The Master Trust Agreement was revised effective January 1, 2011, authorizing transfer of funds from Unit 1 to a spent fuel subaccount to be used for fuel-related costs incurred prior to and after shutdown commences. Additionally, the Master Trust Agreement was revised to allow for creation of a pre-shutdown decommissioning cost subaccount to fund large component replacement and disposal costs.
1. The NRC formulas in 10 CFR 50.75(c) include only those decommissioning costs incurred by licensees to remove a facility or site safely from service, and reduce residual radioactivity to levels that permit: (1) release of the property for unrestricted use and termination of the license; or (2) release of the property under restricted conditions and termination of the license. The cost of dismantling or demolishing non-radiological systems and structures is not included in NRC decommissioning cost estimates. The costs of managing and storing spent fuel on site until transfer to the Department of Energy are not included in the cost formulas.
2. Consistent with the approach taken for its 12% interest in the Order dated November 20, 2008, in PUCT Docket No.

35786, CPS Energy has established separate spent fuel management and pre-shutdown activity subaccounts. The amounts allocable to these subaccounts are not included in the reported amount. The reported amount includes funds accumulated based upon a site-specific study that includes license termination and other costs.

3. CPS Energy estimates that the Trust is currently fully funded, based on the 2008 decommissioning cost study and updated escalation rates. Additional contributions ended January 31, 2008. If future estimates indicate that further funding may be required, CPS Energy would be able to exercise its rate setting authority to collect and accumulate further funds for NRC license termination costs.

Attachment 2 NOC-AE-1 3002985 Page 3 of 4 FINANCIAL ASSURANCE FOR DECOMMISSIONING City Public Service Board of San Antonio 12% Ownership of South Texas Project Unit 2 Pursuant to 10 CFR 50.75(f)(1), each power reactor licensee is required to report to the NRC on a calendar year basis, beginning on March 31, 1999, and every two years thereafter, on the status of its decommissioning funding for each reactor or share of reactor it owns. The requested information is provided below.

1. Minimum decommissioning fund estimate, Total Required: $61,610,573 pursuant to 10 CFR 50.75(b) and (c)1 :
2. Amount accumulated at the end of the calendar Amount Accumulated2: $38,485,903 year preceding the date of the report for items included in 10 CFR 50.75(b) and (c):
3. Schedule of the annual amounts remaining to be Amount Remaining 3: $0 collected for items in 10 CFR 50.75(b) and (c):

Number of Years to Collect: 16

4. Assumptions used regarding escalation in Escalation Rate: 2.727%

decommissioning cost, rates of earnings on decommissioning funds, and rates of other Earnings Rate: 7.3%

factors used in funding projections:

5. Contracts upon which the licensee is relying None pursuant to 10 CFR 50.75(e)(1)(v):
6. Modifications to a licensee's current method None providing financial assurance occurring since the last submitted report:
7. Material changes to trust agreements: The Master Trust Agreement was revised effective January 1, 2011, in accordance with a Public Utility Commission of Texas (PUCT) order authorizing transfer of funds from Unit 2 to a spent fuel subaccount to be used only for fuel-related costs incurred prior to and after shutdown commences.

Additionally, the Master Trust Agreement was revised to allow for creation of a pre-shutdown decommissioning cost subaccount to fund large component replacement and disposal costs.

1. The NRC formulas in 10 CFR 50.75(c) include only those decommissioning costs incurred by licensees to remove a facility or site safely from service, and reduce residual radioactivity to levels that permit: (1) release of the property for unrestricted use and termination of the license; or (2) release of the property under restricted conditions and termination of the license. The cost of dismantling or demolishing non-radiological systems and structures is not included in NRC decommissioning cost estimates. The costs of managing and storing spent fuel on site until transfer to the Department of Energy are not included in the cost formulas.
2. By Order dated November 20, 2008, in PUCT Docket No. 35786, CPS Energy was granted approval to establish separate spent fuel management and pre-shutdown activities subaccounts. The amounts allocable to these subaccounts are not included in the reported amount. The reported amount includes funds accumulated based upon a site-specific study that includes license termination and other costs.
3. CPS Energy estimates that the Trust is currently fully funded, based on the 2008 decommissioning cost study and updated escalation rates. Additional contributions ended December 31, 2008. If future estimates indicate that further funding may be required, CPS Energy would be able to apply to the PUCT to seek further funding for NRC license termination costs through cost-of-service recovery authorized by Texas law.

Attachment 2 NOC-AE-1 3002985 Page 4 of 4 FINANCIAL ASSURANCE FOR DECOMMISSIONING City Public Service Board of San Antonio 28% Ownership of South Texas Project Unit 2 Pursuant to 10 CFR 50.75(f)(1), each power reactor licensee is required to report to the NRC on a calendar year basis, beginning on March 31, 1999, and every two years thereafter, on the status of its decommissioning funding for each reactor or share of reactor it owns. The requested information is provided below.

1. Minimum decommissioning fund estimate, Total Required: $143,758,164 pursuant to 10 CFR 50.75(b) and (c)1 :
2. Amount accumulated at the end of the calendar Amount Accumulated2: $119,724,802 year preceding the date of the report for items included in 10 CFR 50.75(b) and (c):
3. Schedule of the annual amounts remaining to be Amount Remaining 3: $0 collected for items in 10 CFR 50.75(b) and (c):

Number of Years to Collect: 16

4. Assumptions used regarding escalation in Escalation Rate: 2.727%

decommissioning cost, rates of earnings on decommissioning funds, and rates of other Earnings Rate: 7.3%

factors used in funding projections:

5. Contracts upon which the licensee is relying None pursuant to 10 CFR 50.75(e)(1)(v):
6. Modifications to a licensee's current method None providing financial assurance occurring since the last submitted report:
7. Material changes to trust agreements: The Master Trust Agreement was revised effective January 1, 2011, authorizing transfer of funds from Unit 2 to a spent fuel subaccount to be used for fuel-related costs incurred prior to and after shutdown commences. Additionally, the Master Trust Agreement was revised to allow for creation of a pre-shutdown decommissioning cost subaccount to fund large component replacement and disposal costs.
1. The NRC formulas in 10 CFR 50.75(c) include only those decommissioning costs incurred by licensees to remove a facility or site safely from service, and reduce residual radioactivity to levels that permit: (1) release of the property for unrestricted use and termination of the license; or (2) release of the property under restricted conditions and termination of the license. The cost of dismantling or demolishing non-radiological systems and structures is not included in NRC decommissioning cost estimates. The costs of managing and storing spent fuel on site until transfer to the Department of Energy are not included in the cost formulas.
2. Consistent with the approach taken for its 12% interest in the Order dated November 20, 2008, in PUCT Docket No.

35786, CPS Energy has established separate spent fuel management and pre-shutdown activity subaccounts. The amounts allocable to these subaccounts are not included in the reported amount. The reported amount includes funds accumulated based upon a site-specific study that includes license termination and other costs.

3. CPS Energy estimates that the Trust is currently fully funded, based on the 2008 decommissioning cost study and updated escalation rates. Additional contributions ended January 31, 2008. If future estimates indicate that further funding may be required, CPS Energy would be able to exercise its rate setting authority to collect and accumulate further funds for NRC license termination costs.

ATTACHMENT 3 SOUTH TEXAS PROJECT FINANCIAL ASSURANCE FOR DECOMMISSIONING 2013 UPDATE CITY OF AUSTIN - AUSTIN ENERGY

Attachment 3 NOC-AE-1 3002985 Page 1 of 2 FINANCIAL ASSURANCE FOR DECOMMISSIONING City of Austin - Austin Energy 16% Ownership of South Texas Project Unit 1 Pursuant to 10 CFR 50.75(f)(1), each power reactor licensee is required to report to the NRC on a calendar year basis, beginning on March 31, 1999, and every two years thereafter, on the status of its decommissioning funding for each reactor or share of reactor it owns. The requested information is provided below.

1. Minimum decommissioning fund estimate, Total Required: $82,536,838 pursuant to 10 CFR 50.75(b) and (c)1 :
2. Amount accumulated at the end of the calendar Amount Accumulated: $57,136,052 year preceding the date of the report for items included in 10 CFR 50.75(b) and (c) 2:
3. Schedule of the annual amounts remaining to be Amount Remaining: $27,445,604 collected for items in 10 CFR 50.75(b) and (c):

Number of Years to Collect: 15

4. Assumptions used regarding escalation in Escalation Rate: 4.913%

decommissioning cost, rates of earnings on decommissioning funds, and rates of other Earnings Rate: 2.94%

factors used in funding projections:

5. Contracts upon which the licensee is relying None pursuant to 10 CFR 50.75(e)(1)(v):
6. Modifications to a licensee's current method None providing financial assurance occurring since the last submitted report:
7. Material changes to trust agreements: None
1. The NRC formulas in 10 CFR 50.75(c) include only those decommissioning costs incurred by licensees to remove a facility or site safely from service, and reduce residual radioactivity to levels that permit: (1) release of the property for unrestricted use and termination of the license; or (2) release of the property under restricted conditions and termination of the license. The cost of dismantling or demolishing non-radiological systems and structures is not included in NRC decommissioning cost estimates. The costs of managing and storing spent fuel on site until transfer to Department of Energy are not included in the cost formulas.
2. On October 1, 2008, an accounting division of the Decommissioning Trust balance was recorded to reflect the division of costs as referenced in footnote 1.

Attachment 3 NOC-AE-1 3002985 Page 2 of 2 FINANCIAL ASSURANCE FOR DECOMMISSIONING City of Austin - Austin Energy 16% Ownership of South Texas Project Unit 2 Pursuant to 10 CFR 50.75(f)(1), each power reactor licensee is required to report to the NRC on a calendar year basis, beginning on March 31, 1999, and every two years thereafter, on the status of its decommissioning funding for each reactor or share of reactor it owns. The requested information is provided below.

1. Minimum decommissioning fund estimate, Total Required: $82,536,838 pursuant to 10 CFR 50.75(b) and (c)1 :
2. Amount accumulated at the end of the calendar Amount Accumulated: $65,313,598 year preceding the date of the report for items included in 10 CFR 50.75(b) and (c) 2 :
3. Schedule of the annual amounts remaining to be Amount Remaining: $22,808,400 collected for items in 10 CFR 50.75(b) and (c):

Number of Years to Collect: 16

4. Assumptions used regarding escalation in Escalation Rate: 4.913%

decommissioning cost, rates of earnings on decommissioning funds, and rates of other Earnings Rate: 2.94%

factors used in funding projections:

5. Contracts upon which the licensee is relying None pursuant to 10 CFR 50.75(e)(1 )(v):
6. Modifications to a licensee's current method None providing financial assurance occurring since the last submitted report:
7. Material changes to trust agreements: None
1. The NRC formulas in 10 CFR 50.75(c) include only those decommissioning costs incurred by licensees to remove a facility or site safely from service, and reduce residual radioactivity to levels that permit: (1) release of the property for unrestricted use and termination of the license; or (2) release of the property under restricted conditions and termination of the license. The cost of dismantling or demolishing non-radiological systems and structures is not included in NRC decommissioning cost estimates. The costs of managing and storing spent fuel on site until transfer to the Department of Energy are not included in the cost formulas.
2. On October 1, 2008, an accounting division of the Decommissioning Trust balance was recorded to reflect the division of costs as referenced in footnote 1.
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