ML15091A307
| ML15091A307 | |
| Person / Time | |
|---|---|
| Site: | Susquehanna  |
| Issue date: | 03/25/2015 |
| From: | Colantoni C Allegheny Electric Cooperative |
| To: | Document Control Desk, Office of Nuclear Reactor Regulation |
| References | |
| Download: ML15091A307 (9) | |
Text
ELECTRIC COOPERATIVE, INC.
A Touchstone Energy* Cooperative 212 LOCUST ST.
- P.O. BOX 1266
- HARRISBURG, PA 17108-1266
- PHONE 717/233-5704
- FAX 717/234-1309 Submitted pursuant to 10 CFR 50.75 March 25, 2015 U. S. Nuclear Regulatory Commission Document Control Desk Washington, DC 20555-0001 SUSQUEHANNA STEAM ELECTRIC STATION NRC DECOMMISSIONING FUNDING STATUS REPORT Docket Nos. 50-387 and 50-388 This letter provides decommissioning information for the Allegheny Electric Cooperative, Inc. (AEC) ten percent interest in Susquehanna Unit 1 and Unit 2 (SSES) as required by 10 CFR 50.75 "Reporting and Recordkeeping for Decommissioning Planning," section (f)(1). contains the AEC decommissioning funding status report at December 31, 2014, submitted biennially to comply with 10 CFR 50.75(D(1).
If you have any questions regarding the decommissioning report, please direct them to the undersigned.
Sincerely, Craig A. Colantoni Vice President - Finance & Accounting : NRC Decommissioning Funding Status Report December 31, 2014 Copy:
NRC Region I Mr. J. E. Greives, NRC Sr. Resident Inspector Mr. J. A. Whited, NRC Project Manager Mr. L. J. Winker, DEP/BRP A001 to NRC Decommissioning Funding Status Report December 31, 2014 Page 1 of 3 NRC Decommissioning Funding Status Report December 31, 2014 Allegheny Electric Cooperative, Inc.
Susquehanna Steam Electric Station Allegheny Electric Cooperative, Inc. (AEC) hereby submits this Decommissioning Report in compliance with 10 CFR 50.75(f)(1) for its 10% share of Susquehanna (SSES)
Unit 1 and Unit 2.
AEC has analyzed its current funding levels for both SSES units and concluded that these funding levels plus net earnings from trust investments will be sufficient to pay for the decommissioning costs of each unit at the time permanent termination of operations is expected for each unit, consistent with the NRC prescribed minimum set forth in 10 CFR 50.75(c).
Page 2 of 3 Information is submitted to provide Financial Assurance Unit # 1 Unit #2
- 1. The minimum amount of decommissioning funds estimated to be required pursuant to 10 CFR 50.75 (b) and (c) at December 31, 2014.
Allegheny Electric Cooperative, Inc.'s (AEC) calculation reflected in Exhibit 1 (behind this Attachment).
- 2. The amount accumulated at the end of the calendar year preceding the date of the report, net of taxes paid on realized gains and losses, for items included in 10 CFR 50.75 (b) and (c).
$69,363,000
$69,363,000 of the NRC minimum formula is Market Value at December 31, 2014
$56,924,380
$56,924,380
- 3. AEC has determined the trust with expected future earnings (net of expenses and taxes) to be fully funded. (See Exhibit 2)
- 4. The assumptions used regarding escalation in decommissioning cost, rates of earnings on decommissioning funds, and rates of other factors used in funding projections.
Estimated inflation rate for decommissioning costs Estimated earnings rate on decommissioning funds per 10 CFR 50.75(e)(1)(ii) which are credited up to the time of permanent termination of operations along with a pro-rata credit during the dismantlement period.
Rates of other factors used in funding projections
- 5. Any power sale contracts upon which licensee is relying to provide financial assurance.
AEC is the wholesale power supplier for the 14 rural electric cooperatives in Pennsylvania and New Jersey. AEC has wholesale power contracts with its 14 member distribution cooperatives, which is the source for funding the Trust Fund.
None None 5.0%
7.0%
None 5.0%
7.0%
None (see below)
(see below)
Attachment I Page 3 of 3 Information is submitted to provide Financial Assurance
- 6. Modifications to licensee's method of providing financial assurance since previous report.
- 7. Material changes to trust agreement.
Unit # 1 None None Unit #2 None None
Attachment I Exhibit 1 Page 1 of 3 Calculation of Escalation Factors Used in Computation of Minimum Financial Assurance Amount for Decommissioning Susquehanna Steam Electric Station Units land 2 Boiling Water Reactor (BWR)
Escalation Factor Formula -
0.65(L) + 0.13(E) + 0.22(B)
Escalation = (.65 x 2.661) + (.13 x 2.255) + (.22 x 14.160)
Escalation = (1.730 +.293 + 3.115) = 5.138 (L) - Labor - (Bureau of Labor Statistics, Table 6, Compensation, Employment Cost Index, for total compensation, private industry workers, by bargaining status, region and area size)
Northeast region - December 2014 Index Number 123.2 December 2005 Index Number 100.0 December 2005 Base 2.16 L =
123.2 times 2.16 Equals 2.661 100.0 (E) - Energy - (Producer Price Index Commodities, Series ID: WPU0543 and WPU0573)
E =
(.54P +.46F)
E =
(.54 x 1.880) + (.46 x 2.695)
E =
1.015 + 1.240 = 2.255 P - Industrial Power, 500 kW Demand - (Commodity 0543)
December 2014 Index Number 214.7 January 1986 Index Number 114.2 (1)
P 214.7 equals 1.880 114.2 Exhibit I Page 2 of 3 F - Light Fuel Oils - (Commodity 0573)
December 2014 Index Number 221.0 January 1986 Index Number 82.0 F
221.0 equals 2.695 82.0 (B) Waste Burial NUREG - 1307, Rev. 15, "NRC Report on Waste Burial Charges" Table 2.1 Generic LLW Disposal Site, Combination of Compact-Affiliated and Non-Compact Facility 14.160 (1) Represents the national base value of P at January 1986. The base value of P is no longer determined on a regional basis.
Exhibit 1 Page 3 of 3 Allegheny Electric Cooperative, Inc.
Computation of Minimum Financial Assurance Amount for Decommissioning Susquehanna Steam Electric Station Units 1 and 2 Unit 1 Unit 2 Base amount for BWR greater than 3,400 MWt = $135 million The Power Level of Unit 1 = 3,952 MWt and Unit 2 = 3,952 MWt
$135,000,000
$135,000,000 Ownership Percentage Base Amount per Unit 10%
10%
$13,500,000
$13,500,000 Escalation Factor 5.138 5.138 Escalated Amount per Unit Total Escalated Amount (Unit 1 + Unit 2)
$69,363,000
$69,363,000
$138,726,000 Exhibit 2 Page 1 of I Based on current funding and projected earnings, the Trust is considered to be sufficiently funded. AEC reviews the actual cost inflation and earnings performance periodically and adjusts the future funding schedule accordingly.