ML14098A260

Decommissioning Funding Status Report

ML14098A260
Person / Time
Site:	Millstone
Issue date:	03/31/2014
From:	Heacock D Dominion Nuclear Connecticut
To:	Document Control Desk, NRC/FSME
References
14-140
Download: ML14098A260 (6)

Text

Dominion Nuclear Connecticut, Inc.

5000 Dominion Boulevard, Glen Allen, VA 23060 Dominionf Web Address: www.dom.com March 31, 2014 United States Nuclear Regulatory Commission Serial No.14-140 Attention: Document Control Desk NL&OSITJS Rev 0 Washington, D. C. 20555-0001 Docket No. 50-245 License No. DPR-21 DOMINION NUCLEAR CONNECTICUT, INC.

MILLSTONE POWER STATION UNIT 1 DECOMMISSIONING FUNDING STATUS REPORT Pursuant to 10 CFR 50.75(f)(1) and 10 CFR 50.82(a)(8)(v)-(vii), Dominion Nuclear Connecticut, Inc. (DNC) is providing this report on the status of decommissioning funding for Millstone Power Station Unit 1 (MPS1). provides the following information for MPSI:

Table I - Decommissioning Funding Status Report for MPS1; Summary Information as of December 31, 2013 Table II - Decommissioning Funding Status Report for MPS1; 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 2%

Real Rate of Return.

2. The growth rate on Trust Funds is held at the allowed 2% Real Rate of Return over the escalation rate.

3. No rate regulatory authority citation for MPS1 is referenced because MPS1 is a merchant unit.

4. There are no contracts upon which DNC 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. DNC interprets the language of 50.75(e)(1)(v) to report only instances where there is a contract or instances where there is a change to the method of providing financial assurance.

5. There are no annual funding amounts for MPSI.

6. Trust Fund amounts shown in this report are market value and after-tax on realized gains and losses. The Trust Fund balances have not been adjusted for unrealized gain or loss positions not currently taxable.

Serial No.14-140 Docket No. 50-245 MPS1 Decommissioning Funding Status Report 21 Pa g e

7. Since the previous annual submittal on March 28, 2013 (Serial No.13-136) for MPS1 there have been no material changes to trust agreements established for nuclear decommissioning.

Please contact Mr. David A. Sommers at (804) 273-2823 if you have any questions or require additional information.

Sincerely, President and Chief Nuclear Officer Dominion Nuclear Connecticut, Inc.

Attachment:

1. MPS1 Decommissioning Funding Status Report as of December 31, 2013 Commitments made in this letter: None cc: U. S. Nuclear Regulatory Commission Region I 2100 Renaissance Blvd, Suite 100 King of Prussia, PA 19406-2713 Ms. L. A. Kaufman (MPS1)

U. S. Nuclear Regulatory Commission, Region I 2100 Renaissance Blvd, Suite 100 King of Prussia, PA 19406-2713 Mr. S. J. Giebel NRC Project Manager (MPS1)

U. S. Nuclear Regulatory Commission Two White Flint North Mail Stop T-8 F5 11545 Rockville Pike Rockville, MD 20852-2738

Serial No.14-140 Docket No. 50-245 Attachment 1 ATTACHMENT I DECOMMISSIONING FUNDING STATUS AS OF DECEMBER 31. 2013 MILLSTONE POWER STATION - UNIT1 DOMINION NUCLEAR CONNECTICUT, INC. (DNC)

Serial No.14-140 Docket No. 50-245 MPS1 Decommissioning Funding Status Report I IPage Millstone Power Station Unit 1 Decommissioning Funding Status Report as of December 31, 2013 Table I Decommissioning Funding Status Report for MPSl Summary Information as of December 31, 2013 10 CFR 50.82 (a)(8)(v)-(vii)

(in millions)

DecommissioninI Trust Fund Balances 10 CFR Reference 50.82 a)(8)(v(A) 560.82(a)(8(vill(A)

Fund Balance Type of Trusts Comments

$ 418.538 Unit 1 qualified fund balance As of: 12/31/2013

$ - Unit 1 non-qualified fund balance As of: 12/31/2013

$ 2.403 Less costs incurred in 2013 but not yet billed to Trust Actual Cost in: 2013 Dollars

$ 416.135 Adjusted decommissionng fund balance As of: 12/31/2013 Other Financial Assurance Methods Being Relied Upon 110 CFR Reference 160.821a1(8)(v)(A) I None I Prior Years Decommissioning Expenditures 10 CFR Reference 160.82(a)(8)(v)(A) I Total License Term Spent Fuel Mmlmt Site Restoration Comments

$ 4.330 $ 0.549 $ 3.781 $ Actual Cost in: 2013 Dollars For 2013 orny

$ 69.008 $ 44.621 $ 24.387 $ Actual Cost in: As spent dollars For 2001 - 2012

$ 73.338 $ 45.170 $ 28.168 $ Total Prior Years As spent dollars

$ 2.403 -Less costs incurred in 2013 but not yet billed to Trust Actual Cost in: 2013 Dollars Prior Year Decommissioning Expenditures Variance to Estimated Cost 10 CFR Reference 160.82ta)(8)(v)(B)

Total License Term Spent Fuel Mgmt Site Restoration Comments

$ 4.330 $ $ - $ Actual Cost in 2013 Dollars

$ 5.744 $ 1$ Z.. $ Estimated Cost in 2013 Dollars

$ (1.414) $ 1$ - $

Variance: Underrun to NRC Authorized Expenditures Remaining Decommissioning Estimated Cost I10 CFR Reference 160.82(al(8)(v)(B) 150.S2(a)(8)(vil)(B)

Total I License S ent Fuel Mlmt I Site Restoration Comments

$ 431.907 $ 341.143 $ 60.951 $ 29.813 Estimate in: 2014 Dollars Decommissloninp Criteria Upon Which the Estimate Is Based 110 CFR Reference ]60.82(a)(85v)(B) I SAFSTOR I Any Modification To Method of Providing Financial Assurance 10 CFR Reference 560.82(a)(S5 v)(C) I None I Any Material Changes To Trust Agreement Since Previous Report 110 CFR Reference 150.82(a 5)(v)(D) I None I Need For Additional Financial Assurance I10 CFR Reference 160.82(a)(8)(vi) 150.82(a)(8(viiC None ISee Annual Cash Flow Analysis in Table II Inputs to Remaninng Cost and Funding Analysis I 2014 Start year of Remaining Cost and Funding analysis 1.84% Escalate study dollars from 2011$ to current year 2014$ using an average of the CPI rates for 2011 to 2014 0.00% 1Escalation rate (2014 & beyond) 2.00% Fund growth rate (2014 & beyond - F d 2% Real Rate of Return)

--- 4 Notes: Table I

1. Previous decommissioning expenditures represent the expenditures and withdrawals from the nuclear decommissioning trusts made by DNC. These expenditures do not include expenditures and withdrawals made by the former owners of MPS1.

2. These expenditures include withdrawals for irradiated fuel management, consistent with DNC's previous notices to the NRC, as well as allowed ordinary administrative costs.

Serial No.14-140 Docket No. 50-245 MPS1 Decommissioning Funding Status Report 21Page Table II Decommissioning Funding Status Report for MPSI Annual Cash Flow Analysis Starting January 1, 2014 through End of Decommissioning 10 CFR 50.82 (a)(8)(v)-(vii) innillons C~unm Column Colun 6 Column 7 Beginning Earnings Remaining Remaining Remaining Remaining End of on Ucense Termination Spent Fuel Mgmt Site Restoration SAFSTOR of Year Trust Funds Expenditures Expenditures Expenditures Expenditures Year V*=v 1 -.,** 1o ..- D ID. . -t0 :-.

2014 $ 416.135 $ 8.278 $ 1382 $ 3057 $ - $ 4.439 $ 419.974 2015 $ 419.974 $ 8.337 $ 1.990 $ 4.271 $ $ 6.261 $ 422.050 2016 $ 422.050 $ 8.394 $ 1.382 $ 3.276 $ $ 4.658 $ 425.787 2017 $ 425.787 $ 8.458 $ 1.382 $ 4.365 $ $ 5.747 $ 428.498 2018 $ 428.498 $ 8.502 $ 1.382 $ 5.459 $ $ 6.842 $ 430.158 2019 $ 430.158 $ 8.548 $ 1.382 $ 4.134 $ $ 5.516 $ 433.189 2020 $ 433.189 $ 8.608 $ 1.382 $ 4.246 $ $ 5.629 $ 436.168 2021 $ 436.168 $ 8.669 $ 1.382 $ 4.076 $ $ 5.458 $ 439.379 2022 $ 439.379 $ 8.737 $ 1.382 $ 3.697 $ $ 5.079 $ 443.036 2023 $ 443.036 $ 8.812 $ 1.382 $ 3.462 $ $ 4.845 $ 447.004 2024 $ 447.004 $ 8.891 $ 1.382 $ 3.485 $ $ 4.867 $ 451.028 2025 $ 451.028 $ 8.911 $ 6.484 $ 4.514 $ $ 10.998 $ 448.941 2026 $ 448.941 $ 8.917 $ 1.382 $ 4.813 $ $ 6.196 $ 451.662 2027 $ 451.662 $ 8.978 $ 1.382 $ 4.095 $ $ 5.477 $ 455.163 2028 $ 455.163 $ 8.982 $ 8.163 $ 4.000 $ $ 12.163 $ 451.982 2029 $ 451.982 $ 9.012 $ 2.751 $ - $ $ 2.751 $ 458.243 2030 $ 458.243 $ 9.152 $ 1.275 $ $ $ 1.275 $ 466.120 2031 $ 466.120 $ 9.310 $ 1.275 $ $ $ 1.275 $ 474.156 2032 $ 474.156 $ 9.470 $ 1.275 $ $ $ 1.275 $ 482.351 2033 $ 482.351 $ 9.634 $ 1.275 $ $ $ 1.275 $ 490.711 2034 $ 490.711 $ 9.801 $ 1.275 $ $ $ 1.275 $ 499.238 2035 $ 499.238 $ 9.972 $ 1.275 $ $ $ 1.275 $ 507.935 2036 $ 507.935 $ 10.146 $ 1.275 $ $ $ 1.275 $ 516.807 2037 $ 516.807 $ 10.323 $ 1.275 $ $ $ 1.275 $ 525.856 2038 $ 525.856 $ 10.504 $ 1.275 $ $ $ 1.275 $ 535.085 2039 $ 535.085 $ 10.689 $ 1.275 $ $ $ 1.275 $ 544.500 2040 $ 544.500 $ 10.877 $ 1.275 $ $ $ 1.275 $ 554.102 2041 $ 554.102 $ 11.069 $ 1.275 $ $ $ 1.275 $ 563.897 2042 $ 563.897 $ 11.265 $ 1.275 $ $ $ 1.275 $ 573.888 2043 $ 573.888 $ 11.458 $ 1.957 $ $ $ 1.957 $ 583.389 2044 $ 583.389 $ 11.618 $ 4.979 $ $ $ 4.979 $ 590.028 2045 $ 590.028 $ 11.747 $ 5.378 $ $ $ 5.378 $ 596.397 2046 $ 596.397 $ 11.915 $ 1.275 $ $ $ 1.275 $ 607.037 2047 $ 607.037 $ 12.128 $ 1.275 $ I $ $ 1.275 $ 617.891 2048 $ 617.891 $ 12.345 $ 1.275 $ $ $ 1.275 $ 628.961 2049 $ 628.961 $ 12.566 $ 1.275 $ I$ 1$ 1.275 $ 640.253 2050 $ 640.253 $ 12.741 $ 6.413 $ $ $ 6.413 $ 646.581 2051 $ 646.581 1 S S 78 763 1 1 A 78 763 i$ 5i7f 962 2052 $ 579.962 $ 1 $ 1124021$ $ 1.655 $ 1140571$ 476.363 2053 $ 476.363 $ $ 47.101 $ I$ 6.0691 $ 53.1701 $ 432.189 2054 $ 432.189 $ S 24.331 1 S 17 387 1 S 41 717 1 S 3M8 698 2055 $ 398.698 $ $ 2.175 $ $ 2.088 $ 4.263: 402.366 2056 $ 402.366 $ $ $ $ 2.295 1 $ 2.2951 $ 408.096 2057 $ 408.096 $ $ $ $ 0.320 $ 5n 0.320 2058 $ 415.935 $ $ $ $$ $ 424.254 2059 $ 424.254 $ S$ $ -1 $ $ 432.739 2060 1$ 432.739 $ $ 441.393 Remaining Expenditures (in 2014 $)

Estimated Fund Balance - end of Decomnissioning Estimated Fund Balance - end of Decommrssionina

Serial No.14-140 Docket No. 50-245 MPS1 Decommissioning Funding Status Report 31Page Table II Definitions:

Column 1: 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.

Column 2: Earnings on Trust Funds Reflects earnings on funds remaining in the trust. A 2.0% RRoR Fund growth rate is used for 2014 through 2059 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.

Column 3: Remaining License Termination Expenditures Reflects the annual License Termination Plan cost portion at a 0.0% escalation rate from the Site Specific Estimate.

Column 4: Remaining Spent Fuel Management Expenditures Reflects the annual Irradiated Fuel Management Plan cost portion at a 0.0%

escalation rate from the Site Specific 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).

Column 5: Remaining Site Restoration Expenditures Reflects the annual Site Restoration Plan cost portion at a 0.0% escalation rate from the Site Specific Estimate.

Column 6: Remaining SAFSTOR Expenditures Reflects the annual SAFSTOR Decommissioning Plan cost at a 0.0% escalation rate from the Site Specific Cost Estimate.

Column 7: 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.

Table I and II General Notes:

1. Trust Fund Balance reflects market value on December 31, 2013, net of taxes on realized gains and losses.

2. 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 rate setting authority.

3. The funding method for providing financial assurance for decommissioning MPS1 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.

4. Items addressed under 10 CFR 50.75(f)(1) are not repeated.