ML15093A102

Decommissioning Funding Status Report

ML15093A102
Person / Time
Site:	Millstone
Issue date:	03/26/2015
From:	Heacock D Dominion, Dominion Nuclear Connecticut
To:	Document Control Desk, Office of Nuclear Reactor Regulation
References
15-099
Download: ML15093A102 (6)

Text

Dominion Nuclear Connecticut, Inc.

5000 Dominion Boulevard, Glen Allen, VA 23060 Dominione Web Address: www.dom.com March 26, 2015 United States Nuclear Regulatory Commission Serial No.15-099 Attention: Document Control Desk NL&OS/TJS 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 MPS1:

Table I - Decommissioning Funding Status Report for MPS1 Summary Information as of December 31, 2014 Table II - Decommissioning Funding Status Report for MPS1 Annual Cash Flow Analysis Starting January 1, 2015 through the End of Decommissioning The following information is provided in support and as part of this filing:

1. The escalation of decommissioning costs from the Cost Study's 2014 dollars to 2015 dollars is 1.09% and is based upon the average of CPI-U rates for that period. The mnemonics are "FCPIU.US, CPI-U Not Seasonally Adjusted (NSA)

All Urban Consumers, All Items US City Average (Index, 1982-84=100, SA)."

2. The escalation of decommissioning costs, shown in Table II "Annual Cash Flow Analysis" with a starting date of January 1, 2015 is held at 0% based on assuming 2% Real Rate of Return.

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

4. No rate regulatory authority citation for MPS Unit 1 is referenced because MPS1 is a merchant unit.

5. 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.

6. There are no annual funding amounts for MPS1.

7. 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.

8. Since the previous annual submittal on March 31, 2014 (Serial No.14-140) for MPS1 there have been no material changes to trust agreements established for nuclear decommissioning.

-j ooI

Serial No.15-099 MPS1 Decommissioning Funding 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,

"-?vidA. ýHea coce President and Chief Nuclear Officer Dominion Nuclear Connecticut, Inc.

Attachment 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 Mr. T. Carter NRC Senior Project Manager (MPS1)

U. S. Nuclear Regulatory Commission Two White Flint North Mail Stop T-8 F5 11545 Rockville Pike Rockville, MD 20852-2738 Ms. L. A. Kauffman U. S. Nuclear Regulatory Commission, Region 1 2100 Renaissance Blvd Suite 100 King of Prussia, PA 19406-2713

Attachment I Decommissioning Funding Status Report for MPS1 Summary Information as of December 31, 2014 Millstone Power Station - Unit 1 DOMINION NUCLEAR CONNECTICUT, INC. (DNC)

Serial No.15-099 Docket No.50-245 Attachment 1 Page 1 of 3 Millstone Power Station Unit 1 Decommissioning Funding Status Report as of December 31, 2014 Table I Decommissioning Funding Status Report for MPSI Summary Information as of December 31, 2014 10 C FR 50.82 (a)(8)(v)-(vii)

(in millions)

Decommissionin a Trust Fund Balances 10 CFR Reference 150.82(a)(8)(v)(A) 150.82(a)(8)(vii)(A)

Fund Balance Type of Trusts Comments

$ 449.649 Unit 1 qualified fund balance As of: 12/31/2014

$ - Unit 1 non-qualified fund balance As of: 12/31/2014

$ 1.026 Less costs incurred but not yet billed to Trust Actual Cost in: 2014 Dollars

$ 448.623 Adjusted decommissioning fund balance As of: 12/31/2014 Other Financial Assurance Methods Being Relied Upon 110 CFR Reference 50.82(a)(8)(v)(A)

None Prior Years DecommissioningExpenditures 10CFR Reference 50.82(a)(8)(v)(A)

Total License Term Spent Fuel Mgmt Site Restoration Comments

$ 3.724 $ 0.443 $ 3.281 $ - 2014 Cost in: 2014 Dollars

$ 73.338 $ 45.1701 $ 28.168 $; 2001-2013 Cost in: As-Spent Dollars

$ 77.062 $ 45.612 $ 31.4491$ - Total Prior Year in: As-Spent Dollars Prior Year Decommissioning Expenditures Variance to Estimated Cost 10 CFR Reference 150.82(a)(8)(v)(B) I Total License Term Spent Fuel Mgmt Site Restoration Comments

$ 3.724 $ 1$ I$ Actual Cost in 2014 Dollars

$; 6.015 $ 1$ NRC Auth $ in 2014 Dollars

$ (2.291) $ 1$ $

Variance: Underrun to NRC Authorized Expenditures Remaining Decommissioning Estimated Cost [10 CFR Reference 150.82(a)(8)(v)(B) 150.82(a)(8)(vil)(B)

Total License Spent Fuel M mt Site Restoration Comments

$ 386.212 1 288.933 1 76.373 1 20.905 (Estimate in: 2015 Dollars Decommissioning Criteria Upon Which the Estimate is Based I10 CFR Reference 150.82(a)(8)(v)(B)

SAFSTOR I Any Modification To Method of Providing Financial Assurance 110CFR Reference 50.82(a)(8)(v)(C)

None I Any Material Changes To Trust Agreement Since Previous Report 110 CFR Reference 150.82(a)(8)(v)(D) I None I Need For Additional Financial Assurance 110 CFR Reference 150.82(a)(8)(vi) 150.82(a)(8)(vii)(C)

None ISee Annual Cash Flow Analysis in Table II Inputs to Remaining Cost and Funding Analysis I 2015 Start year of Remaining Cost and Funding analysis 1.09% Escalate study dollars from Study Year to Start Year of Analysis using an average of CPI rates 0.00% Escalation rate 2015 & Beyond 2.00% Fund growth rate 2015 & Beyond (Reflects NRC allowed 2% Real Rate of Return)

Projected annual expenditures - see Annual Cash Flow Analysis in Table II Notes: Table I

1) Previous decommissioning expenditures represent the withdrawals from the nuclear decommissioning trusts made by Dominion Nuclear Connecticut, Inc. These expenditures do not include the withdrawals made by the former owners of MPS1.

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

3) A revised Decommissioning Cost Estimate (DCE) was developed in 2014 for MPS1. The estimate of remaining spent fuel management costs reflects a shift in the delayed planned date on which the Department of Energy is expected to begin accepting spent nuclear fuel.

r Serial No.15-099 Docket No.50-245 Attachment 1 Page 2 of 3 Millstone Power Station Unit I Decommissioning Funding Status Report as of December 31, 2014 Table II Decommissioning Funding Status Report for MPS1 Annual Cash Flow Analysis Starting January 1,2015 throug h End of Decommissioning 10 CFR 50.82 (a)(8)(v)-(vil) tin milllonsl Column I Column 2 Column 3 Column 4 Column 6 Column 6 Column 7 Beginning Earnings Remaining Remaining Remaining Remaining End of on License Termination Spent Fuel Mgmt Site Restoration SAFSTOR of Year Trust Funds Expenditures Expenditures Expenditures Expenditures Year Year Balance (Reflects 21/6RRoR) (Reflects 0% Esc) (Reflects 0% Esc) (Reflects 0% Esc) (Reflects 0% Esc) Balance 2015 $ 448.623 $ 8.914 $ 2.162 $ 3.684 $ $ 5.846 $ 451.691 2016 $ 451.691 $ 8.990 $ 1.540 $ 2.799 $ $ 4.340 $ 456.342 2017 $ 456.342 $ 9.086 $ 1.540 $ 2.576 $ $ 4.116 $ 461.312 2018 $ 461.312 $ 9.187 $ 1.540 $ 2.427 $ $ 3.967 $ 466.531 2019 $ 466.531 $ 9.292 $ 1.540 $ 2.349 $ $ 3.889 A 471.933 2020 $ 471.933 $ 9.395 $ 1.540 $ 2.846 $ $ 4.386 $ 476.942 2021 $ 476.942 $ 9.498 $ 1.540 $ 2.573 $ $ 4.113 $ 482.326 2022 $ 482.326 $ 9.608 $ 1.540 $ 2.349 $ $ 3.889 $ 488.045 2023 $ 488.045 $ 9.722 $ 1.540 $ 2.349 $ $ 3.889 $ 493.877 2024 $ 493.877 $ 9.839 $ 1.540 $ 2.349 $ $ 3.889 $ 499.827 2025 $ 499.827 $ 9.902 $ 6.760 $ 2.722 $ $ 9.482 $ 500.246 2026 $ 500.246 $ 9.964 $ 1.540 $ 2.573 $ $ 4.113 $ 506.097 2027 $ 506.097 $ 10.081 $ 1.540 $ 2.603 $ $ 4.143 $ 512.034 2028 $ 512.034 $ 10.183 $ 1.540 $ 4.264 $ $ 5.804 $ 516.413 2029 $ 516.413 $ 10.273 $ 1.540 $ 3.991 $ $ 5.532 $ 521.154 2030 $ 521.154 $ 10.384 $ 1.540 $ 2.349 $ $ 3.889 $ 527.649 2031 $ 527.649 $ 10.512 $ 1.540 $ 2.573 $ $ 4.113 $ 534.048 2032 $ 534.048 $ 10.642 $ 1.540 $ 2.349 $ $ 3.889 $ 540.801 2033 $ 540.801 $ 10.777 $ 1.540 $ 2.349 $ $ 3.889 $ 547.689 2034 $ 547.689 $ 10.915 $ 1.540 $ 2.349 $ $ 3.889 $ 554.714 2035 $ 554.714 $ 11.049 $ 2.162 $ 2.349 $ $ 4.511 $ 561.253 2036 $ 561.253 $ 11.184 $ 1.540 $ 2.573 $ $ 4.113 $ 568.324 2037 $ 568.324 $ 11.328 $ 1.540 $ 2.349 $ $ 3.889 $ 575.762 2038 $ 575.762 $ 11.476 $ 1.540 $ 2.349 $ $ 3.889 $ 583.349 2039 $ 583.349 $ 11.628 $ 1.540 $ 2.349 $ $ 3.889 $ 591.088 2040 $ 591.088 $ 11.783 $ 1.540 $ 2.349 $ $ 3.889 $ 598.982 2041 $ 598.982 $ 11.941 $ 1.540 $ 2.349 $ $ 3.889 $ 607.033 2042 $ 607.033 $ 12.102 $ 1.540 $ 2.349 $ $ 3.889 $ 615.246 2043 $ 615.246 $ 12.254 $ 2.718 $ 2.349 $ $ 5.067 $ 622.433 2044 $ 622.433 $ 12.337 $ 10.560 $ 0.585 $ $ 11.145 $ 623.625 2045 $ 623.625 $ 12.434 $ 3.862 $ - $ $ 3.862 $ 632.197 2046 $ 632.197 $ 12.630 $ 1.400 $ $ $ 1.400 $ 643.427 2047 $ 643.427 $ 12.855 $ 1.400 $ $ $ 1.400 $ 654.881 2048 $ 654.881 $ 13.072 $ 2.530 $ $ $ 2.530 $ 665.423 2049 $ 665.423 $ 12.742 $ 56.643 $ $ $ 56.643 $ 621.522 2050 $ 621.522 $ 11.640 $ 79.002 $ $ $ 79.002 $ 554.160 2051 $ 554.160 $ 10.348 $ 73.554 $ $ $ 73.554 $ 490.953 2052 $ 490.953 $ 9.807 $ 1.191 $ $ $ 1.191 $ 499.569 2053 $ 499.569 $ 9.786 $ 0.103 $ $ 20.450 $ 20.552 $ 488.802 2054 $ 488.802 $ 9.772 $ 0.038 $ $ 0.362 $ 0.401 $ 498.173 2055 $ 498.173 $ 9.963 $ - $ $ 0.093 $ 0.093 $ 508.043 2056 $ 508.043 $ 10.161 $ $ $ - $ - $ 518.204 2057 $ 518.204 $ 10.364 $ $ $ $ $ 528.568 2058 $ 528.568 $ 10.571 $ $ $ $ $ 539.139 2059 $ 539.139 $ 10.783 $ $ $ $ $ 549.922 2060 $ 549.922 $ 10.998 $ $ $ $ $ 560.920 2061 $ 560.920 $ 11.218 $ $ $ $ $ 572.139 2062 $ 572.139 $ 11.443 $ $ $ $ $ 583.581 2063 $ 583.581 $ 11.672 $ $ $ $ $ 595.253 2064 $ 595.253 $ 11.905 $ $ $ $ $ 607.158 2065 $ 607.158 $ 12.143 $ $ $ $ $ 619.301 2066 $ 619.301 $ 12.386 $ $ $ $ $ 631.687 2067 $ 631.687 $ 12.634 $ $ $ $ $ 644.321 2068 $ 644.321 $ 12.886 $ $ $ $ $ 657.208 2069 $ 657.208 $ 13.144 $ $ $ $ $ 670.352 2070 $ 670.352 $ 13.407 $ $ $ $ $ 683.759 2071 $ 683.759 $ 13.612 $ 6.340 $ $ $ 6.340 $ 691.031 Remaining $In 2016 Dollars $ 288.933 $ 76.373 $ 20.9051 $ 386.212 Es. Fund Balance (end of Decommissioning) (in Future $ escalated at 0.0% &2.0% Real Rate of Return Fund Growth Rate) $ 691.031 Es. Fund Balance (end of Decommissioning) discounted to 2016 Dollars Discount Rate = 2.00% $ 227.975

Serial No.15-099 Docket No.50-245 Attachment 1 Page 3 of 3 Millstone Power Station Unit 1 Decommissioning Funding Status Report as of December 31, 2014 Table IIDefinitions:

Column 1: Beginning of Year Balance:

Reflects the beginning-of-year Trust Fund balance at a 0.0% cost escalation rate and a 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 2015 through 2071 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 a 2.0% RRoR on fund growth.

Tables I and II General Notes:

1) Trust Fund balance reflects market value on December 31, 2014, 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. The cash flow analysis in Table II 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, spent fuel management and site restoration.

4) A revised Decommissioning Cost Estimate (DCE) was developed in 2014 for MPSI. The estimate of remaining spent fuel management costs reflects a shift in the delayed planned date, on which the Department of Energy is expected to begin accepting spent nuclear fuel.