Text

Midamerican Energy Co., Submittal of Decommissioning Funding Status Report Pursuant to 10 CFR 50.75(f)(1), Including ISFSI Decommissioning Funding (10 CFR 72.30)
	ML15090A115
Person / Time
Site:	Quad Cities
Issue date:	03/27/2015
From:	Cindy Montgomery; MidAmerican Energy Co
To:	; Document Control Desk, Office of Nuclear Material Safety and Safeguards
References
	Download: ML15090A115 (33)
	v • d • e

MidAmerican ENERGY OBSESSIVELY, RELENTLESSLY AT YOUR SERVICE.

MidAmerican Energy 4299 N.W. Urbandale Drive Urbandale, Iowa 50322 515 281-2976 Telephone 515 2424398 Fax crmontaqomery@.midarmerican.com Charles R. Montgomery Managing Senior Attorney March 27, 2015 U.S. Nuclear Regulatory Commission Attention: Document Control Desk Mail Stop O-Pl-17 One White Flint North 11555 Rockville Pike Rockville, MD 20852-2738 Re:

Decommissioning Funding Status Report Pursuant to 10 CFR

§50.75(f)(1), including ISFSI Decommissioning Funding (10 CFR §72.30)

Document Control Desk:

Enclosed is a signed original version of MidAmerican Energy Company's Decommissioning Funding Status Report (Report) for MidAmerican's twenty-five (25) percent share of the Quad Cities Nuclear Power Station, submitted pursuant to 10 CFR

§50.75(f)(1). The attached Report also includes the decommissioning funding plan for ISFSI, pursuant to 10 CFR §72.30.

If you have any questions regarding this submission, please contact the undersigned.

Respectfully submitted, Charles R. Montgomery Managing Senior Attorney MidAmerican Energy Company 4299 NW Urbandale Drive Urbandale, Iowa 50322 Phone: (515) 281-2976 Fax: (515) 242-4398 e-mail: crmontgomeryvmidamerican.com PVSS:2(fr

2014 DECOMMISSIONING FUNDING STATUS REPORT

: ý4 1. 1 r' I I i.i ! 4 ý"

ý 11 ý I 10 CFR 50.75(f)(1)

(For The Year Ending December 31, 2014)

QUAD CITIES NUCLEAR POWER STATION, UNITS 1 & 2 Submitted by MidAmerican Energy Company Dated March 27, 2015

OVERVIEW This Decommissioning Funding Status Report is being submitted pursuant to 10 CFR 50.75(f)(1) by MidAmerican Energy Company (MEC), a twenty-five percent owner of Quad Cities Nuclear Power Station, Units 1 & 2 (Quad Cities).

ADDITIONAL INFORMATION 1.) Amount of decommissioning funds estimated to be required pursuant to 10 CFR 50.75(b) and (c).

Determined in accord with 10 CFR 50.75(b) and applicable formulas in 10 CFR 50.75(c) and reported in end of year 2014 dollars.

NRC Minimum Unit 1

$164,402,673 Unit 2

$164,402,673 Totals

$328,805,346 NRC Minimum (Amount Required for Prepayment)

Unit 1

$107,400,223 Unit 2

$107,400,223 Totals

$214,800,446 2.) Amount accumulated to the end of the calendar year preceding the date of the report.

As of December 31, 2014, MEC had an accumulated after-tax balance of $424,182,221.

External Trust Fund Balance (Fair Market value)

Unit 1

$212,026,103 Unit 2

$212,156,118 Totals

$424,182,221 3.) Schedule of the annual amount remaining to be collected.

Within the meaning of 10 CFR 50.75(e)(1)(ii)(A), MEC collects the estimated total cost of decommissioning through rates established by "cost of service" or similar ratemaking regulation. Pursuant to the Iowa Utilities Board's rate case decision in Docket No. RPU-2013-0004, MidAmerican Energy Company's annual Iowa jurisdictional decommissioning cost included in the cost of service is $1,595,964, divided equally between the two Quad Cities Units. MidAmerican plans to continue customer collections 2

at that same level through the operating license period of the plant. The Illinois Commerce Commission has not authorized any current, ongoing collections for decommissioning from MEC's Illinois ratepayers. On October 28, 2004 the NRC issued renewed facility operating licenses for Quad Cities Nuclear Power Station Unit 1 (License No. DPR-29) and Unit 2 (License No. DPR-30) effective as of the date of issuance and which shall expire at midnight on December 14, 2032, in effect extending the licenses an additional twenty years.

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.

In filings with the IUB, MEC periodically utilizes appropriate assumptions for decommissioning cost escalations and earnings rates. Solely for purposes of meeting NRC's minimum requirements, MEC has calculated that the current fund balances and annual funding levels, together with earnings at a 2 percent annual real rate of return as permitted by 10 CFR 50.75(e)(1)(ii), satisfy NRC's minimum funding assurance requirements. Given the current fund balances, anticipated earnings on the funds, and planned future contributions, MEC expects that fully adequate funding will be available for each unit at the time of decommissioning.

5.) Any contracts upon which the licensee is relying pursuant to 10 CFR 50.75(e)(1)(v).

MEC is not relying upon any contract for purposes of providing decommissioning funding within the meaning of 10 CFR 50.75(e)(1)(v).

6.) Any modifications occurring to a licensee's current method of providing financial assurance since the last submitted report.

MEC continues to use the external sinking fund method of providing decommissioning funding assurance.

7.) Any material changes to trust agreements.

No material changes were made to the trust agreements since MidAmerican's last Decommissioning Funding Status Report, in 2013, and no additional material changes were needed for compliance with 10 CFR 50.75(h)(2). The following table identifies the current Trustee and Investment Manager for each fund.

3

Trust Trustee Investment Manager Unit 1, Qualified The Bank of New York NISA Investment Advisors Mellon Unit 1, Non-Qualified The Bank of New York NISA Investment Advisors Mellon Unit 2, Qualified The Bank of New York NISA Investment Advisors Mellon Unit 2, Non-Qualified The Bank of New York NISA Investment Advisors Mellon 8.) ISFSI Decommissioning Funding Plan.

See attachment No. 1.

MIDAMERICAN ENERGY COMPANY By:

U

/ -----

Charles R. Montgomery, Managin Senimo'r Attorney MidAmerican Energy Compan 4299 Northwest Urbandale I~ive Urbandale, IA 50322-7916 (515) 281-2976 4

ATTACHMENT No. 1 ISFSI Decommissioning Funding Plan 1.0

SUMMARY

DESCRIPTION MidAmerican Energy Company (MidAmerican) is a minority owner, with a 25%

ownership share, of Quad Cities Nuclear Power Station (QCNPS) Units I and 2.

MidAmerican co-owns QCNPS with Exelon Generation Company, LLC (Exelon).

Exelon owns a 75% share of Units I and 2 and operates both units as well. Exelon and MidAmerican maintain decommissioning cost estimates for QCNPS, which are periodically updated. Imbedded in these decommissioning cost estimates are the costs associated with decommissioning the Independent Spent Fuel Storage Installation (ISFSI) located at QCNPS. The decommissioning cost estimate for the ISFSI has been extracted from the decommissioning cost estimate and are provided herein.

As Exelon has noted in its own 10 CFR 72.30(b) filing, the radiological decommissioning costs for an ISFSI typically consist of the costs associated with removing and disposing of small volumes of neutron-activated concrete and certain structural steel components.

Exelon has indicated that no impact is expected upon soil and groundwater at the QCNPS site during the storage period contemplated in the decommissioning cost estimate for the site. Exelon has also noted that induced radioactivity at the QCNPS ISFSI is not expected to result in residual radioactivity in excess of 25 mRem/yr in an unrestricted release scenario, were no action to be taken to remediate the site.

Finally, Exelon has noted that it anticipates small, but measurable amounts of induced radioactivity to be present, and release of this material from the QCNPS site will require it to be disposed of at a NRC-licensed radioactive waste disposal facility. Therefore, Exelon has included the costs of this disposal in the decommissioning cost estimates.

2.0 DETAILED DESCRIPTION 2.1 Reasonable Assurance of Funds Availability MidAmerican's trust fund balances for QCNPS Units I and 2 currently exceed the costs required for radiological decommissioning-see Tables 1 and 2, below. The excess assets will be used to decommission the on-site ISFSI. Table 1, below, shows the costs estimated for radiological decommissioning under 10 CFR 50.75(b) and (c), using the NRC Minimum formulas, and Table 2 shows MidAmerican's trust fund balances as of December 31, 2014. Both the radiological decommissioning costs and the trust fund balances are stated in 2014 dollars and are adjusted for MidAmerican's 25% ownership share.

5

2.2 Detailed Cost Estimate Table 3, below, which is based upon the November 2013 TLG decommissioning cost estimate for QCNPS, details the costs of ISFSI decommissioning in 2014 dollars (MidAmerican escalated the 2011 dollar figures from the Nov. 2013 TLG study using a 3.5% escalation rate). Table 3 shows the costs of performing this work (discussed further in the assumptions below), with an adequate contingency factor, to meet the 10 CFR 20.1402 criteria for unrestricted use. The cost of performing this ISFSI decommissioning work is approximately $486,000

($972,000 x 2 = $486,000 per Table 3, see the "Total Costs" column) per unit for MidAmerican's 25% share.

2.3 Assumptions Consistent with the assumptions made by Exelon in its own 10 CFR 72.3 0(b) filing, MidAmerican has made the following assumptions with respect to ISFSI decommissioning:

1. Decommissioning costs in Table 3 are escalated at 3.5% per annum into 2014 dollars. (Exelon previously escalated costs into 2012 dollars since its 10 CFR 72.30(b) filing was made in late 2012.)

2. All values in Tables I - 4 are stated at MidAmerican's 25% ownership share for QCNPS. Costs for ISFSI decommissioning have been equally split between the two (2) units at QCNPS.

3.

The costs for ISFSI decommissioning are expected to be incurred in the year in which DOE has accepted all spent fuel from the QCNPS site for disposal.

2.4 Method of Assurance In accordance with 10 CFR 72.30(b)(4), Tables 1 -3 demonstrate the method of assuring funds for ISFSI decommissioning, from 10 CFR 72.30(e). Exelon and MidAmerican periodically update the decommissioning cost estimate for QCNPS, and MidAmerican adjusts the funding levels, as necessary, in accordance with 10 CFR 50.75. (MidAmerican's annual Iowa jurisdictional decommissioning cost included in the cost of service is $1,595,964, per the Iowa Utilities Board's rate case decision in Docket No. RPU-2013-0004. The Illinois Commerce Commission has not authorized any current, ongoing collection from MidAmerican's Illinois ratepayers.)

6

2.5 Volume of Subsurface Residual Radioactivity Requiring Remediation Per review of site-specific 10 CFR 50.75(g) logs, Exelon indicates it has not identified any onsite, subsurface material containing residual radioactivity at the ISFSI located at QCNPS.

2.6 Certification of Financial Assurance In accordance with 10 CFR 72.30(b), financial assurance, for decommissioning, has been provided in an amount that meets or exceeds the requirements of 10 CFR 50.75(b). As demonstrated in Tables 1-4, this provides the requisite financial assurance for the ISFSI decommissioning costs.

Table I NRC Minimum as of 12/31/14, in 2014 Dollars Unit 1

$164,402,673 Unit 2

$164,402,673 Totals

$328,805,346 Table 2 External Trust Fund Balance (Fair Market Value) as of 12/31/14, in 2014 Dollars Unit 1

$212,026,103 Unit 2

$212,156,118 Totals

$424,182,221 Table 3 (ISFSI Decommissioning Costs)

MidAmerican's Ownership Share Unit I &

Unit 2 (2014 Dollars w/3.5% Escl Removal Packaging Transport Costs Costs Cost U.RW Disposal Other Costs Costs Total Total Contingency Costs Cu.FT Class A LLRW`

Burial /

Processed Weight MAIs Utility and Craft Contractor Manhours Manhours.

ISFSI License Termination 28 6

24 80 453 99 690 1,335 111,954 1,904 640 Small Tool Allowance 1

1 Property Taxes 91 9

100 Security Staff Cost Utility Staff Cost Total 65 10 75 1,245 93 80 702 14 132 107 972 472 29 6

24 1,335 111,954 1,904 2.356 7

Table 4 (Total Decommissioning Costs per NRC Minimum Formulas)

(2014 Dollars)

MidAmerican Energy Company Quad Cities, Unills I & 2 (2.957 MWI)

As of 12/31/2014 REACTOR TYPE:

BWR BASE COST S

130,613.000 (5104 + 0.009P (in MWt))

Escalatlon Faatoru I

t31/2014 Base Factol Base Year Source Labor 120.31 2081 2005 IBureau of Labor Statistics: Series CIU20100000002301 Energy Power IP) 214.71 114.21 1986 Bureau of Labor Statistics: Series WPU0543 Fuel (F) 221.0 82.0 1986 Bureau of Labor Statistics: Series WPU0573 Waste Burial (B) 14.16 NUREG-1307, Rev 15, Table 2-1 Calculation Labor Factor (L) 2.50 x 0.65=

1.63 LaborFormula: CYFacor Base aci Energy Factor (E) 2.25 x 0.13=.

0.29 Energy Formula: E = 0.54P + 0.46F Waste Factor (B) 14.16 x 0.22=

3.12 Total Escalation Factor:

5.03 Total Escalation Formula: 0.65L + 0.13E -f 0.22B Total Minimum Assurance Unit 1 9 2 (100/%y

$1,3.5,221,384 MidAmerican Minimum Assurance (25%):

$ 328.805.346 8

1~

2014 DECOMMISSIONING FUNDING STATUS REPORT 10 CFR 50.75(f)(1)

(For The Year Ending December 31, 2014)

QUAD CITIES NUCLEAR POWER STATION, UNITS 1 & 2 Submitted by MidAmerican Energy Company Dated March 27, 2015

OVERVIEW This Decommissioning Funding Status Report is being submitted pursuant to 10 CFR 50.75(f)(1) by MidAmerican Energy Company (MEC), a twenty-five percent owner of Quad Cities Nuclear Power Station, Units 1 & 2 (Quad Cities).

ADDITIONAL INFORMATION 1.) Amount of decommissioning funds estimated to be required pursuant to 10 CFR 50.75(b) and (c).

Determined in accord with 10 CFR 50.75(b) and applicable formulas in 10 CFR 50.75(c) and reported in end of year 2014 dollars.

NRC Minimum Unit 1

$164,402,673 Unit 2

$164,402,673 Totals

$328,805,346 NRC Minimum (Amount Required for Prepayment)

Unit 1

$107,400,223 Unit 2

$107,400,223 Totals

$214,800,446 2.) Amount accumulated to the end of the calendar year preceding the date of the report.

As of December 31, 2014, MEC had an accumulated after-tax balance of $424,182,221.

External Trust Fund Balance (Fair Market value)

Unit 1

$212,026,103 Unit 2

$212,156,118 Totals

$424,182,221 3.) Schedule of the annual amount remaining to be collected.

Within the meaning of 10 CFR 50.75(e)(1)(ii)(A), MEC collects the estimated total cost of decommissioning through rates established by "cost of service" or similar ratemaking regulation. Pursuant to the Iowa Utilities Board's rate case decision in Docket No. RPU-2013-0004, MidAmerican Energy Company's annual Iowa jurisdictional decommissioning cost included in the cost of service is $1,595,964, divided equally between the two Quad Cities Units. MidAmerican plans to continue customer collections 2

at that same level through the operating license period of the plant. The Illinois Commerce Commission has not authorized any current, ongoing collections for decommissioning from MEC's Illinois ratepayers. On October 28, 2004 the NRC issued renewed facility operating licenses for Quad Cities Nuclear Power Station Unit 1 (License No. DPR-29) and Unit 2 (License No. DPR-30) effective as of the date of issuance and which shall expire at midnight on December 14, 2032, in effect extending the licenses an additional twenty years.

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.

In filings with the IUB, MEC periodically utilizes appropriate assumptions for decommissioning cost escalations and earnings rates. Solely for purposes of meeting NRC's minimum requirements, MEC has calculated that the current fund balances and annual funding levels, together with earnings at a 2 percent annual real rate of return as permitted by 10 CFR 50.75(e)(1)(ii), satisfy NRC's minimum funding assurance requirements. Given the current fund balances, anticipated earnings on the funds, and planned future contributions, MEC expects that fully adequate funding will be available for each unit at the time of decommissioning.

5.) Any contracts upon which the licensee is relying pursuant to 10 CFR 50.75(e)(l)(v).

MEC is not relying upon any contract for purposes of providing decommissioning funding within the meaning of 10 CFR 50.75(e)(1)(v).

6.) Any modifications occurring to a licensee's current method of providing financial assurance since the last submitted report.

MEC continues to use the external sinking fund method of providing decommissioning funding assurance.

7.) Any material changes to trust agreements.

No material changes were made to the trust agreements since MidAmerican's last Decommissioning Funding Status Report, in 2013, and no additional material changes were needed for compliance with 10 CFR 50.75(h)(2). The following table identifies the current Trustee and Investment Manager for each fund.

3

Trust Trustee Investment Manager Unit 1, Qualified The Bank of New York NISA Investment Advisors Mellon Unit 1, Non-Qualified The Bank of New York NISA Investment Advisors Mellon Unit 2, Qualified The Bank of New York NISA Investment Advisors Mellon Unit 2, Non-Qualified The Bank of New York NISA Investment Advisors Mellon 8.) ISFSI Decommissioning Funding Plan.

See attachment No. 1.

MIDAMERICAN ENERGY COMPANY By:

GJ1 R i' K -

Charles R. Montgomery, Managinj MidAmerican Energy Comparl1-4299 Northwest Urbandale 1rive Urbandale, IA 50322-7916 (515) 281-2976 Attorney 4

ATTACHMENT No. 1 ISFSI Decommissioning Funding Plan 1.0

SUMMARY

DESCRIPTION MidAmerican Energy Company (MidAmerican) is a minority owner, with a 25%

ownership share, of Quad Cities Nuclear Power Station (QCNPS) Units I and 2.

MidAmerican co-owns QCNPS with Exelon Generation Company, LLC (Exelon).

Exelon owns a 75% share of Units I and 2 and operates both units as well. Exelon and MidAmerican maintain decommissioning cost estimates for QCNPS, which are periodically updated. Imbedded in these decommissioning cost estimates are the costs associated with decommissioning the Independent Spent Fuel Storage Installation (ISFSI) located at QCNPS. The decommissioning cost estimate for the ISFSI has been extracted from the decommissioning cost estimate and are provided herein.

As Exelon has noted in its own 10 CFR 72.30(b) filing, the radiological decommissioning costs for an ISFSI typically consist of the costs associated with removing and disposing of small volumes of neutron-activated concrete and certain structural steel components.

Exelon has indicated that no impact is expected upon soil and groundwater at the QCNPS site during the storage period contemplated in the decommissioning cost estimate for the site. Exelon has also noted that induced radioactivity at the QCNPS ISFSI is not expected to result in residual radioactivity in excess of 25 mRem/yr in an unrestricted release scenario, were no action to be taken to remediate the site.

Finally, Exelon has noted that it anticipates small, but measurable amounts of induced radioactivity to be present, and release of this material from the QCNPS site will require it to be disposed of at a NRC-licensed radioactive waste disposal facility. Therefore, Exelon has included the costs of this disposal in the decommissioning cost estimates.

2.0 DETAILED DESCRIPTION 2.1 Reasonable Assurance of Funds Availability MidAmerican's trust fund balances for QCNPS Units I and 2 currently exceed the costs required for radiological decommissioning-see Tables I and 2, below. The excess assets will be used to decommission the on-site ISFSI. Table 1, below, shows the costs estimated for radiological decommissioning under 10 CFR 50.75(b) and (c), using the NRC Minimum formulas, and Table 2 shows MidAmerican's trust fund balances as of December 31, 2014. Both the radiological decommissioning costs and the trust fund balances are stated in 2014 dollars and are adjusted for MidAmerican's 25% ownership share.

5

2.2 Detailed Cost Estimate Table 3, below, which is based upon the November 2013 TLG decommissioning cost estimate for QCNPS, details the costs of ISFSI decommissioning in 2014 dollars (MidAmerican escalated the 2011 dollar figures from the Nov. 2013 TLG study using a 3.5% escalation rate). Table 3 shows the costs of performing this work (discussed further in the assumptions below), with an adequate contingency factor, to meet the 10 CFR 20.1402 criteria for unrestricted use. The cost of performing this ISFSI decommissioning work is approximately $486,000

($972,000 x 1/ = $486,000 per Table 3, see the "Total Costs" column) per unit for MidAmerican's 25% share.

2.3 Assumptions Consistent with the assumptions made by Exelon in its own 10 CFR 72.30(b) filing, MidAmerican has made the following assumptions with respect to ISFSI decommissioning:

1. Decommissioning costs in Table 3 are escalated at 3.5% per annum into 2014 dollars. (Exelon previously escalated costs into 2012 dollars since its 10 CFR 72.30(b) filing was made in late 2012.)

2. All values in Tables I - 4 are stated at MidAmerican's 25% ownership share for QCNPS. Costs for ISFSI decommissioning have been equally split between the two (2) units at QCNPS.

3. The costs for ISFSI decommissioning are expected to be incurred in the year in which DOE has accepted all spent fuel from the QCNPS site for disposal.

2.4 Method of Assurance In accordance with 10 CFR 72.30(b)(4), Tables 1 -3 demonstrate the method of assuring funds for ISFSI decommissioning, from 10 CFR 72.30(e). Exelon and MidAmerican periodically update the decommissioning cost estimate for QCNPS, and MidAmerican adjusts the funding levels, as necessary, in accordance with 10 CFR 50.75. (MidAmerican's annual Iowa jurisdictional decommissioning cost included in the cost of service is $1,595,964, per the Iowa Utilities Board's rate case decision in Docket No. RPU-2013-0004. The Illinois Commerce Commission has not authorized any current, ongoing collection from MidAmerican's Illinois ratepayers.)

6

2.5 Volume of Subsurface Residual Radioactivity Requiring Remediation Per review of site-specific 10 CFR 50.75(g) logs, Exelon indicates it has not identified any onsite, subsurface material containing residual radioactivity at the ISFSI located at QCNPS.

2.6 Certification of Financial Assurance In accordance with 10 CFR 72.30(b), financial assurance, for decommissioning, has been provided in an amount that meets or exceeds the requirements of 10 CFR 50.75(b). As demonstrated in Tables 1-4, this provides the requisite financial assurance for the ISFSI decommissioning costs.

Table 1 NRC Minimum as of 12/31/14. in 2014 Dollars Unit 1

$164,402,673 Unit 2

$164,402,673 Totals

$328,805,346 Table 2 External Trust Fund Balance (Fair Market Value) as of 12/31/14, in 2014 Dollars Unit 1

$212,026,103 Unit2

$212,156,118 Totals

$424,182,221 Table 3 (ISFSI Decommissioning Costs)

MidAmerican's Ownership Share Unit 1 &

Unit 2 12014 Dollars w/3.S% Escl Transport Cost Removal Packaging Costs Costs tLRW Disposal Olher Costs Costs Total Total Contineencv Costs CUll`

Cla 56 A ILLW Burial /

Processed Weight libsi Utility and Craft Contractor Manhours Manhours.

1SFS1 License Termination 28 6

24 80 453 99 690 1,335 111.954 1.904 640 Small Tool Allowance 1

1 Property Taxes 91 9

100 Security Staff Cost Utility Staff Cost Total 65 10 75 1,245 93 80 702 14 132 107 972 472 1.904 2,356 29 6

24 1.3 35 111,954 7

Table 4 (Total Decommissioning Costs per NRC Minimum Formulas)

(2014 Dollars)

MidAmerican Energy Company Quad CIl*es, Units 1 2 (2.957 MWI)

Ae of 12131r2914 REACTOR TYPE.:

BWR BASE COST S

130.613.000 (5104 + 0.009P (in MWtI))

Escalation Factors 12f112914 Base Factwl Base Yea, Source:

Labor 120.3 2.08 200E Bureau of Labor Statistics: Series CLU20100000002301 Energy Pouwr i1 2.14.71 114.21 19K8 Bureau of Labor Statistics-Series WPU0543 FiuO(F) 221.0 82.0 1986 Bureau, of Labor Statislics: Series WPU0573 Waste Burial (B) 14-16 NUMJREG-1307, Rev 15, Table 2-1 Calculation Labor factor (L) 2.50 x 0.65 1-63 Labor Formula: CY Factor

Base Factot Energy Factor (E) 225 x0.13=

0.29 Energy Formula: E =0.154P 4 0.46F Wa.sto Factor ()

14.16 x 0.22 3.12 Toal Escalation Factor:

5.03 Total Escalation Formula: O.65.

W 0.13E 4 0.22B Total Minimum Assurance Unit 1 £ 2 (100(,*S,.3.5221,381 MidAmerican Minimum Assurance (25%):

F 32,8.05.346 8

2014 DECOMMISSIONING FUNDING STATUS REPORT 10 CFR 50.75(f)(1)

(For The Year Ending December 31, 2014)

QUAD CITIES NUCLEAR POWER STATION, UNITS 1 & 2 Submitted by MidAmerican Energy Company Dated March 27, 2015

OVERVIEW This Decommissioning Funding Status Report is being submitted pursuant to 10 CFR 50.75(f)(1) by MidAmerican Energy Company (MEC), a twenty-five percent owner of Quad Cities Nuclear Power Station, Units 1 & 2 (Quad Cities).

ADDITIONAL INFORMATION 1.) Amount of decommissioning funds estimated to be required pursuant to 10 CFR 50.75(b) and (c).

Determined in accord with 10 CFR 50.75(b) and applicable formulas in 10 CFR 50.75(c) and reported in end of year 2014 dollars.

NRC Minimum Unit 1

$164,402,673 Unit 2

$164,402,673 Totals

$328,805,346 NRC Minimum (Amount Required for Prepayment)

Unit 1

$107,400,223 Unit 2

$107,400,223 Totals

$214,800,446 2.) Amount accumulated to the end of the calendar year preceding the date of the report.

As of December 31, 2014, MEC had an accumulated after-tax balance of $424,182,221.

External Trust Fund Balance (Fair Market value)

Unit 1

$212,026,103 Unit 2

$212,156,118 Totals

$424,182,221 3.) Schedule of the annual amount remaining to be collected.

Within the meaning of 10 CFR 50.75(e)(1)(ii)(A), MEC collects the estimated total cost of decommissioning through rates established by "cost of service" or similar ratemaking regulation. Pursuant to the Iowa Utilities Board's rate case decision in Docket No. RPU-2013-0004, MidAmerican Energy Company's annual Iowa jurisdictional decommissioning cost included in the cost of service is $1,595,964, divided equally between the two Quad Cities Units. MidAmerican plans to continue customer collections 2

at that same level through the operating license period of the plant. The Illinois Commerce Commission has not authorized any current, ongoing collections for decommissioning from MEC's Illinois ratepayers. On October 28, 2004 the NRC issued renewed facility operating licenses for Quad Cities Nuclear Power Station Unit I (License No. DPR-29) and Unit 2 (License No. DPR-30) effective as of the date of issuance and which shall expire at midnight on December 14, 2032, in effect extending the licenses an additional twenty years.

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.

In filings with the IUB, MEC periodically utilizes appropriate assumptions for decommissioning cost escalations and earnings rates. Solely for purposes of meeting NRC's minimum requirements, MEC has calculated that the current fund balances and annual funding levels, together with earnings at a 2 percent annual real rate of return as permitted by 10 CFR 50.75(e)(1 )(ii), satisfy NRC's minimum funding assurance requirements. Given the current fund balances, anticipated earnings on the funds, and planned future contributions, MEC expects that fully adequate funding will be available for each unit at the time of decommissioning.

5.) Any contracts upon which the licensee is relying pursuant to 10 CFR 50.75(e)(1)(v).

MEC is not relying upon any contract for purposes of providing decommissioning funding within the meaning of 10 CFR 50.75(e)(1)(v).

6.) Any modifications occurring to a licensee's current method of providing financial assurance since the last submitted report.

MEC continues to use the external sinking fund method of providing decommissioning funding assurance.

7.) Any material changes to trust agreements.

No material changes were made to the trust agreements since MidAmerican's last Decommissioning Funding Status Report, in 2013, and no additional material changes were needed for compliance with 10 CFR 50.75(h)(2). The following table identifies the current Trustee and Investment Manager for each fund.

3

Trust Trustee Investment Manager Unit 1, Qualified The Bank of New York NISA Investment Advisors Mellon Unit 1, Non-Qualified The Bank of New York NISA Investment Advisors Mellon Unit 2, Qualified The Bank of New York NISA Investment Advisors Mellon Unit 2, Non-Qualified The Bank of New York NISA Investment Advisors Mellon 8.) ISFSI Decommissioning Funding Plan.

See attachment No. 1.

MIDAMERICAN ENERGY COMPANY By:

~YN.N-Charles R. Montgomery, M Attorney MidAmerican Energy Compan,*-

4299 Northwest Urbandale IQve Urbandale, IA 50322-7916 (515) 281-2976 4

ATTACHMENT No. 1 ISFSI Decommissioning Funding Plan 1.0

SUMMARY

DESCRIPTION MidAmerican Energy Company (MidAmerican) is a minority owner, with a 25%

ownership share, of Quad Cities Nuclear Power Station (QCNPS) Units 1 and 2.

MidAmerican co-owns QCNPS with Exelon Generation Company, LLC (Exelon).

Exelon owns a 75% share of Units I and 2 and operates both units as well. Exelon and MidAmerican maintain decommissioning cost estimates for QCNPS, which are periodically updated. Imbedded in these decommissioning cost estimates are the costs associated with decommissioning the Independent Spent Fuel Storage Installation (ISFSI) located at QCNPS. The decommissioning cost estimate for the ISFSI has been extracted from the decommissioning cost estimate and are provided herein.

As Exelon has noted in its own 10 CFR 72.30(b) filing, the radiological decommissioning costs for an ISFSI typically consist of the costs associated with removing and disposing of small volumes of neutron-activated concrete and certain structural steel components.

Exelon has indicated that no impact is expected upon soil and groundwater at the QCNPS site during the storage period contemplated in the decommissioning cost estimate for the site. Exelon has also noted that induced radioactivity at the QCNPS ISFSI is not expected to result in residual radioactivity in excess of 25 mRem/yr in an unrestricted release scenario, were no action to be taken to remediate the site.

Finally, Exelon has noted that it anticipates small, but measurable amounts of induced radioactivity to be present, and release of this material from the QCNPS site will require it to be disposed of at a NRC-licensed radioactive waste disposal facility. Therefore, Exelon has included the costs of this disposal in the decommissioning cost estimates.

2.0 DETAILED DESCRIPTION 2.1 Reasonable Assurance of Funds Availability MidAmerican's trust fund balances for QCNPS Units 1 and 2 currently exceed the costs required for radiological decommissioning-see Tables 1 and 2, below. The excess assets will be used to decommission the on-site ISFSI. Table 1, below, shows the costs estimated for radiological decommissioning under 10 CFR 50.75(b) and (c), using the NRC Minimum formulas, and Table 2 shows MidAmerican's trust fund balances as of December 31, 2014. Both the radiological decommissioning costs and the trust fund balances are stated in 2014 dollars and are adjusted for MidAmerican's 25% ownership share.

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2.2 Detailed Cost Estimate Table 3, below, which is based upon the November 2013 TLG decommissioning cost estimate for QCNPS, details the costs of ISFSI decommissioning in 2014 dollars (MidAmerican escalated the 2011 dollar figures from the Nov. 2013 TLG study using a 3.5% escalation rate). Table 3 shows the costs of performing this work (discussed further in the assumptions below), with an adequate contingency factor, to meet the 10 CFR 20.1402 criteria for unrestricted use. The cost of performing this ISFSI decommissioning work is approximately $486,000

($972,000 x 1/2/ = $486,000 per Table 3, see the "Total Costs" column) per unit for MidAmerican's 25% share.

2.3 Assumptions Consistent with the assumptions made by Exelon in its own 10 CFR 72.30(b) filing, MidAmerican has made the following assumptions with respect to ISFSI decommissioning:

1. Decommissioning costs in Table 3 are escalated at 3.5% per annum into 2014 dollars. (Exelon previously escalated costs into 2012 dollars since its 10 CFR 72.30(b) filing was made in late 2012.)

2. All values in Tables 1 - 4 are stated at MidAmerican's 25% ownership share for QCNPS. Costs for ISFSI decommissioning have been equally split between the two (2) units at QCNPS.

3. The costs for ISFSI decommissioning are expected to be incurred in the year in which DOE has accepted all spent fuel from the QCNPS site for disposal.

2.4 Method of Assurance In accordance with 10 CFR 72.30(b)(4), Tables 1 -3 demonstrate the method of assuring funds for ISFSI decommissioning, from 10 CFR 72.30(e). Exelon and MidAmerican periodically update the decommissioning cost estimate for QCNPS, and MidAmerican adjusts the funding levels, as necessary, in accordance with 10 CFR 50.75. (MidAmerican's annual Iowa jurisdictional decommissioning cost included in the cost of service is $1,595,964, per the Iowa Utilities Board's rate case decision in Docket No. RPU-2013-0004. The Illinois Commerce Commission has not authorized any current, ongoing collection from MidAmerican's Illinois ratepayers.)

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2.5 Volume of Subsurface Residual Radioactivity Requiring Remediation Per review of site-specific 10 CFR 50.75(g) logs, Exelon indicates it has not identified any onsite, subsurface material containing residual radioactivity at the ISFSI located at QCNPS.

2.6 Certification of Financial Assurance In accordance with 10 CFR 72.30(b), financial assurance, for decommissioning, has been provided in an amount that meets or exceeds the requirements of 10 CFR 50.75(b). As demonstrated in Tables 1-4, this provides the requisite financial assurance for the ISFSI decommissioning costs.

Table 1 NRC Minimum as of 12/31/14, in 2014 Dollars Unit 1

$164,402,673 Unit 2

$164,402,673 Totals

$328,805,346 Table 2 External Trust Fund Balance (Fair Market Value) as of 12/31/14, in 2014 Dollars Unit 1

$212,026,103 Unit2

$212,156,118 Totals

$424,182,221 Table 3 (ISFSI Decommissioning Costs)

MidAmerican's Ownership Share Unit I &

Unit 2 12014 Odlars w/3.596 Escl Transport Cost Removal Packaging Costs Costs IlRW Disposal other Costs Costs Total Total Contineencv Costs CUYfl Class A LILRW Ourial /

Processed Weight (Ibsi Utilityand C(ait Contractor Manhours Manhours.

FSFI License Termination 28 6

24 80 453 99 690 1.335 111.954 1.904 640 Small Tool Allowance 1

j I

Property Taxes 91 9

100 Security Staff Cost Utility Staff Cost Total 65 10 75 1,245 93 80 702 14 132 107 972 472 1.904 2,356 29 6

24 1.335 111,954 7

Table 4 (Total Decommissioning Costs per NRC Minimum Formulas)

(2014 Dollars)

MidAmerican Energy Company Quad Cllles, Units 19 2 (2,951 MWI)

As of 12/31/2014 REACTOR TYPE.:

BWR BASE COST 130.613.000 (5104* + 0.009P (in MWt))

Ercalatlon Factors 12,11/214 lDw Fa.___

Dow Yea Suorce:

Labor 120.3 2.081 2005 1Bureau of Labor Statislics: Series CIU201000002301 Energy Poste 1

214.71 114-2 19186 Bureau of Labor Statistics: Series WPUO.543 Fuel (F) 2201 21 1906 Bureau of Labor Stalistics: Series WPU0573 Waste Burial (B) 14.11 NUREG-1307, Rev 15, Table 2-1 Calculation I

I Labor Factor (L) 2.50 x 0.65 =

1.63 Labor Formula: CYFaclor 'Base Factor Energy Factor (E) 2.215 x 0.13 =

0.29 Energy Formula: E = 0.54P + O.46F Waste Factor aB) 14.16 x 0.22 3.12 Total Escalation Factor:

5.03 Total Escalation Formula: 0.65& + O.13E 4 0.22B Total Minimum Assurance Unit 1 2 (100%y 1,315,221,381 MidAmerican Minimum Asrurance (25%):

5. 320.05.346 8

2014 DECOMMISSIONING FUNDING STATUS REPORT 10 CFR 50.75(f)(1)

(For The Year Ending December 31, 2014)

QUAD CITIES NUCLEAR POWER STATION, UNITS 1 & 2 Submitted by MidAmerican Energy Company Dated March 27, 2015

OVERVIEW This Decommissioning Funding Status Report is being submitted pursuant to 10 CFR 50.75(f)(1) by MidAmerican Energy Company (MEC), a twenty-five percent owner of Quad Cities Nuclear Power Station, Units I & 2 (Quad Cities).