ML14098A259
| ML14098A259 | |
| Person / Time | |
|---|---|
| Site: | Kewaunee  |
| Issue date: | 03/31/2014 |
| From: | Heacock D Dominion Energy Kewaunee |
| To: | Document Control Desk, Office of Nuclear Reactor Regulation |
| References | |
| Download: ML14098A259 (7) | |
Text
Dominion Energy Kewaunee, Inc.
j ftmihionlhf 5000 Dominion Boulevard, Glen Allen, VA 23060 Web Address: www.dom.com March 31, 2014 United States Nuclear Regulatory Commission Serial No.14-117 Attention: Document Control Desk NL&OS/TJS Rev 0 Washington, D. C. 20555-0001 Docket No.
50-305 License No.
DPR-43 DOMINION ENERGY KEWAUNEE, INC.
KEWAUNEE POWER STATION DECOMMISSIONING FUNDING STATUS REPORT Pursuant to 10 CFR 50.75(f)(1) and 50.82(a)(8)(v)-(vii), Dominion Energy Kewaunee, Inc. (DEK) is providing this report on the status of decommissioning funding for Kewaunee Power Station (KPS). provides the following information for KPS:
Table I -
Decommissioning Funding Status Report for KPS; Summary Information as of December 31, 2013 Table II - Decommissioning Funding Status Report for KPS; Annual Cash Flow Analysis Starting January 1, 2014 through End of Decommissioning The following information is provided in support and as part of this filing:
- 1. The escalation of decommissioning costs is held at 0% based on assuming a 2.0%
Real Rate of Return.
- 2. The growth rate of Trust Funds is assumed at the allowed 2.0% Real Rate of Return over the escalation rate.
- 4. There are no contracts upon which DEK is relying under paragraph 10 CFR 50.75(e)(1)(v) and there were no modifications to the current method of providing financial assurance since the last submitted report. DEK interprets the language of 50.75(e)(1)(v) to report only instances where there is a contract or in instances where there is a change to the method of providing financial assurance.
- 5. There are no annual funding amounts for KPS.
- 6. Trust Fund amounts shown in this report are market value and after-tax on realized gains and losses. The Trust Fund balance has not been adjusted for unrealized gain or loss positions not currently taxable.
- 7. Since the previous submittal on March 28, 2013 (Serial No.13-136, ADAMS Accession No. ML13098A087) for KPS there have been no material changes to trust agreements established for nuclear decommissioning of KPS.
Serial No.14-117 KPS Decommissioning Fund Status Report Page 2 of 2 Please contact Mr. David A. Sommers at (804) 273-2823 if you have any questions or require additional information.
Sincerely, David A. Heacock President and Chief Nuclear Officer Dominion Energy Kewaunee, Inc.
Attachments:
- 1. KPS Decommissioning Funding Status Report as of December 31, 2013 Commitments made in this letter: None cc:
Regional Administrator, Region III U. S. Nuclear Regulatory Commission 2443 Warrenville Road Suite 210 Lisle, IL 60532-4352 Mr. W. C. Huffman Jr., Project Manager U.S. Nuclear Regulatory Commission One White Flint North, Mail Stop 08-Dl 5 11555 Rockville Pike Rockville, MD 20852-2738 Mr. Christopher Gratton, Project Manager U.S. Nuclear Regulatory Commission One White Flint North, Mail Stop 08-Dl 5 11555 Rockville Pike Rockville, MD 20852-2738
Serial No.14-117 Docket No. 50-305 ATTACHMENT 1 DECOMMISSIONING FUNDING STATUS REPORT AS OF DECEMBER 31, 2013 KEWAUNEE POWER STATION DOMINION ENERGY KEWAUNEE, INC. (DEK)
Serial No.14-117 Docket No. 50-305 Page 1 of 4 Kewaunee Power Station Decommissionina Fundinq Status Report as of December 31. 2013 Table I Decommissioning Funding Status Report for KPS Summary Information as of December 31, 2013 10 CFR 80. 82 (a)(8)(v)-(vil)
(in millions)
Decommissionin 1 Trust Fund Balances 10 CFR Reference 560.82 a)(8)(v)(AI 160.82 a581vii (A)
Fund Balance Type of Trusts Comments 684.766 Qualified fund balance As of:
12/31/2013
- Non-qualified fund balance As of:
12/31/2013 35.422 Less costs incurred in 2013 but not yet billed to Trust Actual Cost in:
2013 Dollars 649.343 Adjusted decommissioning fund balance As of:
12/31/2013
[Other Financial Assurance Methods Being Relied Upon io CFR Reference 160.82(a)(S)5v)(A)
I None I
Prior Years Decommissioning Expenditures 10 CFR Reference 160.82(a)1S)(v)(A)
I Total License Term Spent Fuel Mgmt Site Restoration Comments 46.366 27.510 $
18.855 $
Actual Cost in:
2013 Dollars For 2013 only 0.175 0.170 0.006 Actual Cost in:
2012 Dollars Billed in 2013 46.541 27.680 18.861 Total Prior Years As spent dollars 35.422 Less costs incurred in 2013 but not yet billed to Trust Actual Cost in:
2013 Dollars Prior Year Decommissioninm Ependitures Variance to Estimated Cost 10 CFR Reference 160.82(a)(8)(v)(B)
I Total I Ucense Term Spent Fuel Mgmt Site Restoration Comments 1
46366 S 27.510 1 i 18.855 $
Actual Cost in 2013 Dollars I
38.266 27.077 11.189 1 $
8.100 1 $
0.433 1$
7.666 stimated Cost in 2013 Dollars Variance: License Termination and Spent Fuel Management overruns due to overtime for Emergency Response & Security, insurance
& coroorate charoes more than exnected.
iRemaining Decommissionina Estimated Cost i10CFRReference 160.821a11Siiv0IBt I
I I
Toal I Ucense Term S pent Fuel M mt Site Restoration Comments 837.9921 $
524.670 $
277.217 36.104 Estimate in:
2014 Dollars Decommissloning Criteria Upon Which the Estimate is Based 10 CFR Reference 150.82(ai(8)(viB)
I SAFSTOR I
Any Modification To Method of Providing Financial Assurance 10 CFR Reference 5s0.82(a)(e)8v)(C)
I None I
Any Material Changes To Trust Agreement Since Previous Report 10 CFR Reference 5 0.S2(s)(8)(v)(D)
I None I
Need For Additional Financial Assurance 10 CFR Reference 160.82(a)(8)(v) 160.82(a)8 vill C None ISee Annual Cash Flow Analysis in Table II Inputs to Remaining Cost and Funding Analysis I
2014 Start year of analysis 1.85%
Escalate study dollars from 2012$ to current year 2014$ using an average of CPI rates for 2012 to 2014 0.00%
Escalation rate (2014 & beyond) 2.00%
Fund growth rate (2014 & beyond - Reflects NRC allowed 2% Real Rate of Return)
Annual expenditures Projected annual expenditures - see Annual Cash Flow Annalyis in Table II
Serial No.14-117 Docket No. 50-305 Page 2 of 4 Table II Decommissioning Funding Status Report for KPS Annual Cash Flow Analysis Starting January 1, 2014 through End of Decommissioning 10 CFR 50.82 (a)(8)(v)-(vil)
Beginning of Year l*1a£ Earnings on Trust Funds Colurm 3 Remaining Ucense Terninatlon Expenditures Remaining Spent Fuel Mgnt Expenditures Remaining Site Restoration Expenditures Remaining SAFSTOR Expenditures End of Year V.~
2014 649.343 11.890 75.304 34.360 109.664 551.570 2015 551.570 10.679 4.653 30.588 35.241 527.008 2016 527.008 10.183 6.278 29.453 35.731 501.460 2017 501.460 9.800 15.469 7.401 22.869 488.391 2018 488.391 9.694 1.778 5.606 7.385 490.700 2019 490.700 9.740 1.778 5.606 1
7.385 493.056 2020 493.056 9.787 1.778 5.606 7.385 495.458 2021 495.458 9.835 1.778 5.606 7.385 497.909 2022 497.909 9.884 1.778 5.606 7.385 500.409 2023 500.409 9.934 1.778 5.606 7.385 502.959 2024 502.959 9.985 1.778 5.606 7.385 505.559 2025 505.559 10.037 1.778 5.606 7.385 508.212 2026 508.212 10.090 1.778 5.606 7.385 510.918 2027 510.918 10.145 1.778 5.606 7.385 513.678 2028 513.678 10.200 1.778 5.606 7.385 516.493 2029 516.493 10.256 1.778 5.606 7.385 519.365 2030 519.365 10.313 1.778 5.606 7.385 522.294 2031 522.294 10.372 1.778 5.606 7.385 525.281 2032 525.281 10.432 1.778 5.606 7.385 528.328 2033 528.328 10.484 2.611 5.606 8.218 530.595 2034 530.595 10.538 1.778 5.606 7.385 533.748 2035 533.748 10.601 1.778 5.606 7.385 536.965 2036 536.965 10.665 1.778 5.606 7.385 540.246 2037 540.246 10.731 1.778 5.606 7.385 543.592 2038 543.592 10.798 1.778 5.606 7.385 547.006 2039 547.006 10.866 1.778 5.606 7.385 550.488 2040 550.488 10.936 1.778 5.606 7.385 554.039 2041 554.039 11.007 1.778 5.606 7.385 557.661 2042 557.661 11.079 1.778 5.606 7.385 561.356 2043 561.356 11.153 1.778 5.606 7.385 565.125 2044 565.125 11.229 1.778 5.606 7.385 568.969 2045 568.969 11.306 1.778 5.606 7.385 572.890 2046 572.890 11.384 1.778 5.606 7.385 576.889 2047 576.889 11.463 1.778 5.738 7.517 580.835 2048 580.835 11.549 1.791 4.951 6.742 585.643 2049 585.643 11.695 1.795 1.795 595.542 2050 595.542 11.893 1.795 1.795 605.640 2051 605.640 12.095 1.795 1.795 615.939 2052 615.939 12.301 1.795 1.795 626.444 2053 626.444 12.511 1.795 1.795 637.160 2054 637.160 12.725 1.795 1.795 648.090 2055 648.090 12.944 1.795 1.795 659.238 2056 659.238 13.167 1.795 1.795 670.609 2057 670.609 13.394 1.795 1.795 682.208 2058 682.208 13.626 1.795 1.795 694.039 2059 694.039 13.863 1.795 1.795 706.106 2060 706.106 14.104 1.795 1.795 718.415 2061 718.415 14.350 1.795 1.795 730.970 2062 730.970 14.601 1.795 1.795 743.776 2063 743.776 14.858 1.795 1.795 756.838 2064 756.838 15.119 1.795 1.795 770.161 2065 770.161 15.385 1.795 1.795 783.751 2066 783.751 15.657 1.795 1.795 797.613 2067 797.613 15.821 13.172 13.172 800.262 2068 800.262 15.768 23.702 23.702 $
792.328 2069 792.328 15.387 45.968 45.968 761.746 2070 761.746 14.184 105.048 105.048 $
670.883 2071 670.883 12.459 95.862 95.862 587.481 2072 587.481 11.126 50.806 11.576 62.382 $
536.224 2073 536.224 10.457 0.113 2.149 24.528 26.791_
2074 519.890 10.398 530.288 2075 530.2886 10.6061 $
540.893 Remnaining Expenditures (in 2014 $)
1 1
1 1riiiiiI i
Eatimated Fund Balance - end of Decornrsslonlno tin Future $ escalated at 0.0% & 2.0% Real Rate of Return Fund Growth Rate)
Estimated Fund Balance - end of Deconrmissioning (Discounted to 2014 11) 1 Discount Rate - 2.001/
Serial No.14-117 Docket No. 50-305 Page 3 of 4 Table II Definitions:
Column 1:
Column 2:
Column 3:
Column 4:
Beginning of Year Balance Reflects the beginning-of-year Trust Fund balance at a 0.0% cost escalation rate and 2.0% Real Rate of Return (RRoR) on fund growth.
Earnings on Trust Funds Reflects earnings on funds remaining in the trust. A 2.0% RRoR Fund growth rate is used for 2014 through 2073 which reflects the allowed 2.0% RRoR over a 0.0%
cost escalation rate.
The annual 2.0% RRoR earnings are calculated on the beginning balance plus 50% of the projected annual expenditure for each year.
Remaining License Termination Expenditures Reflects the annual License Termination Plan cost portion at a 0.0% escalation rate from the Site Specific Cost Estimate.
Remaining Spent Fuel Management Expenditures Reflects the annual Irradiated Fuel Management Plan cost portion at a 0.0%
escalation rate from the Site Specific Cost Estimate. This column is intended to provide the report on the status of funding for managing irradiated fuel required by 10 CFR 50.82(a) (8) (vii).
Remaining Site Restoration Expenditures Reflects the annual Site Restoration Plan cost portion at a 0.0% escalation rate from the Site Specific Cost Estimate.
Remaining SAFSTOR Expenditures Reflects the annual SAFSTOR Decommissioning Plan cost at a 0.0% escalation rate from the Site Specific Cost Estimate.
End of Year Balance Reflects the end of year Trust Fund Balance after all projected earnings are added and all projected expenditures are deducted for the year specified at a 0.0%
escalation rate and 2.0% RRoR on fund growth.
Column 5:
Column 6:
Column 7:
Table I and II General Notes:
- 1. The cost estimates contained in Tables I and II are obtained from revised site-specific cost and schedule tables. This information will be provided in an update to the KPS Post-Shutdown Decommissioning Activities Report (DEK Submittal Letter No.14-116).
- 2. The Trust Fund balance reflects market value on December 31, 2013, net of taxes on realized gains and losses.
- 3. The 2.0% RRoR is based on the rate allowed by 10 CFR 50.75(e)(1)(i) and 10 CFR 50.82(a)(8)(vi) and not on any order of a rate setting authority.
- 4. The funding method for providing financial assurance for decommissioning KPS remains prepayment.
This cash flow analysis demonstrates that the amounts accumulated in the Trust are sufficient, with credited earnings at a 2.0% RRoR, to cover the estimated cost of radiological decommissioning, irradiated fuel management and site restoration.
This analysis will also be provided in an update to the KPS Irradiated Fuel Management Plan pursuant to 10 CFR 50.54(bb) (DEK Submittal Letter No.14-115).
- 5. Items addressed under 10 CFR 50.75(f)(1) are not repeated.
Serial No.14-117 Docket No. 50-305 Page 4 of 4
- 6. DEK has in place a parent Support Agreement in the amount of $60 million for the purposes of supplementing DEK in the event: 1) of an operational event lasting six months or more or 2) for decommissioning of the plant. Unless terminated with the approval of the NRC, the Support Agreement would remain in place and provide additional financial assurance for decommissioning and irradiated fuel management.
- 7. The cash flow analysis in Table II shows that the funds accumulated in the Trust are sufficient, with credited earnings at a 2% real rate of return, to cover the estimated cost of radiological decommissioning, irradiated fuel management and site restoration.
Approval to use the Trust for irradiated spent fuel management purposes has not yet been obtained.