NL-15-0581, Vogtle, Units 1 and 2 - Oglethorpe Power Corporation Response on Financial Assurance Requirements for Decommissioning Nuclear Power Reactors (10 CFR 50.75(f)(1))
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Vogtle Electric Generating Plant, Units 1 & 2 Financial Assurance Requirements for Decommissioning Nuclear Power Reactors (10 CFR 50.75(f)(1))
Enclosure 2 Oglethorpe Power Corporation Response An E.iacln Uembe~hip March 3, 2015 Docket Nos.: 50-424 50-425 U. S. Nuclear Regulatory Commission ATTN: Document Control Desk Washington, D.C. 20555 Vogtle Electric Generating Plant Financial Assurance Requirements for Decommissioning Nuclear Power Reactors (10 CFR 50.75(f)(1)}
Dear Ladies and Gentlemen:
Pursuant to 10 CFR 50.75(f)(1), each power reactor licensee is required to report to the NRC the status of its decommissioning funding for each reactor or part of each reactor it owns on a calendar year basis, beginning on March 31, 1999, and every two years thereafter.
Accordingly, Oglethorpe Power Corporation (OPC) hereby submits the enclosed information in accordance with 10 CFR 50.75(f)(1) for operating licenses NPF-68 and NPF-81 issued for Vogtle Electric Generating Plant Units 1 and 2, respectively.
Southern Nuclear Operating Company, as the operating licensee and as an agent for the owners of the Vogtle Electric Generating Plant, is providing this information to the NRC on behalf of OPC.Based on the information presented herein, there is reasonable assurance that the funding necessary for decommissioning of the Vogtle Electric Generating Plant, consistent with the NRC prescribed minimum set forth in 10 CFR 50.75(c), will be available on the expiration date of operating licenses NPF-68 and NPF-81.Please advise if you have any questions or comments regarding the information provided herein.Respectfully submitted,2 Anne F. Appleby Vice President, Treasurer Oglethorpe Power Corporation Enclosure Oglethorpe Power Corporation
- 2100 Easl Exchange Place.* Tucker. GA a30084-5336 Phone 770.270-7600 Fax 770-210-7872 0A member of the National Rural Elecfric Coopewative Association Enclosure Vogtle Electric Generating Plant Oglethorpe Power Corporation Ownership Percentage
-30.0%10 CFR 50.75(f)(1)
Requirement Unit I Unit 2 1 The NRC minimum decommissioning estimate, pursuant to 10 CFR 50.75(b) and (c). 1 $155,344,000 2 $155,344,000 2 The amount accumulated at the end of the $73,867,000
$66,911,000 calendar year preceding the date of the report for items included in 10 CFR 50.75(b) and (c).3 A schedule of the annual amounts remaining to be See Schedule in See Schedule in collected; for items in 10 CFR 50.75(b) and (c). Attachment 1 Attachment 1 4 The assumptions used regarding: (a) rates of escalation in decommissioning 2.41% 2.41%costs;(b) rates of earnings on decommissioning6.060%
funds;6 .06 0 %(c) real rate of return; and3.9359 (d) rates of other factors used in funding None None projections.
5 Any contracts upon which the licensee is relying None None pursuant to 10 CFR 50.75(e)(1)(v).
_________________
_________________
6 Any modifications to a licensee's current method None None of providing financial assurance occurring since the last submitted report.7 Any material changes to trust agreements.
In May 2013 replaced the In May 2013 replaced the international equity manager intemnational equity manager with another international with another international
_____________________________________________equity manager equity manager j"As a rural electric cooperative.
OPC's budget is approved by its Board of Directors annually.
The budget includes a 6%V rate of earnings assumption for the Hatch and Vogtle Nuclear Decommissioning Tnust Funds.The 6% rate of earnings assumption less the 2.41.% escalation rate results in a real rate of return of 3.59%NOTES: SThe NRC formulas in section 10 CFR 50.75(c) include only those decommissioning costs incurred by licensees to remove a facility or site safely from service and reduce residual radioactivity to levels that permit: (1) release of the property for unrestricted use and termination of the license; or (2) release of the property under restricted conditions and termination of the license. The cost of dismantling or demolishing non-radiological systems and structures is not included in the NRC decommissioning cost estimates.
The costs of managing and storing spent fuel on-site until transfer to DOE are not included in the cost formulas.2 This amount is based on NUREG-1 307, Rev. 15, for the burial factor (Option 2) and the December 2014 BLS data for labor and energy.
Attachment 1 Schedule of the Annual Amounts Remaining to be Collected Oglethorpe Power Cor'poration 2014 NRC MINIMUM Vogtle 1 g t.6Vogtle Rt Balance Balance Balance Year Begin Year Earnig Contribution End Year Year Begin Year E 2014 69,391,624 4,163,497 0 73.866,987 2014 62,857,914 2015 73,866.987 4,432.019 0 78,299,006 2015 66,9i0,931" 2016 78,299,006 4,697,940 0 82,996,947 2016 87 2017 82,996,947
'4,979,81 7 0 87,976.763 2017 75.l81.j22 2018 87,976,763 5,278,606 0 93,255.369 2018 79,691,989 2019 93.255,369 5,595.322 0 98,850.691 201i9 2020 98,850,691 5,931,041 0 104,781,733 2020 89,541,119 2021 104,781,733 6,286,904 0 111,068,637 2021 94,914.134 2022 111,068,637 6.664,118 0 117,732,755 2022 100,609,101 2023] 117,732,755 7,063.965 0 124,796,720 20"23 2024 124,796,720 7,487.803 0 1 32,284,524 2024 2025 132,284,524 p,937.071 0 140,221.595
', 2025 119,827,287 2026 140,221,595 8,413.296 0 148,634,891 2026 ) ,7.2 ,92 2027 1,18,634.891 8,918,093 0 157.552.984 2027 134,637,039 2028 157,552,984 9,453,179 0 t67,006,163 2028 142.716,2!16 2029 167,006,163 10,020.370 0 1 77,026,533 2029 151,279, i89 2030 177,026,533 10,621.592 0 187,648,125 2030 160,355,240 2031 187,648, 125 1 1.258,887 0 198.9117.012 2031 169,977,296 2032 198,907,012 1 1.934,421 0 210,841,433 2032 180,175,234 1 2033 210,841,433 12,650,486 0 223,491,919 2033 190,986,,i90 I 2034 223,491,919 13.409,515 0 236,901,431t 2034 I 2035 236,901,434 14.214.086 0 251,11I5,520 2035 214,592,i20 I 2036 251 ,115,520 15,066,931 0 266,182,452 2036 ?227 47 I 2037 266.182,452 15,970,947 0 282,153,399 2037 j2.t 1 2038 282,153,399 16,929,204 0 299,082,603 2038 T5h7, , I 2039 299,082,603 12,944,956 0 317,027,559 2039 2: ,'T;?,7SI%
2040 317,027,559 19,021,654 0 336,049,212 2040 73,C36 I 2041 336,049,212 20,162,953 0 356,21 2,165 2041 Y; 4., 3I 2042 356,212,165 21,372,730 0 377,584.895 2042 322.667,656 I 2043 377,584,895 22,655,094 0 400,239.988 2043 342,027,7,16 2 2044 400,239,988 24,014,399 0 424,254,388 2044 2 2045 424,254,388 25,455,263 0 449,709.651 2045 384,302,3,42 2 2046 449,709.651 26,982.579 0 476,692,230 2046 407,360,182 2 2047 476,692,230 28,601,534 0 505,293,764 2047 2 2048 2 2049 2 349,088,000 NRC 'vim frow 2/15 Ietter 6 Balance£arnings Contrbution End Year 3,771,421 4,014,656 4,255,535 4,510.867 4,781,519 5.068,411I 5,372,515 5,694,866 6.036,558 6.398,752 6,7 82.67 7 7,189,637 7,621,015 8.078,276 8,562,973 9,076,751I 9,621,356 0,198,638 0,810,556 1,459,189 2.146,741 2,875,545 3,648.078 4,466,963 5,334,980 6.255.079 7,230.384-8,264,207 9.360,059 0,521,663 2.752,963 3,058,140.4,441,629 25,908,127
.7 462,614 29,11I0,3-1 66,910,931 70,925,587 75,181,122 79,691,989 84,473.509 89,541,919 94,91,'1,434 100,609,301 106,645,859 113,044,610 119.827.287 127.016,924 134,637,939 142,716,216 151,279,189 160,355,940 169.977,296 180,175,934 190,986,490 202445,680 214,592.420 227,467,966 241.116.043 255,583,006 270,91 7,986 287,173.066 304.403,450 322,667,656 342,027,716 362,549,379 384.302,342 407,360,482 431,802.111 457,710,238 485,172,852 514,283,223 366,117,000 NRC Mm from 2/15 Ictc Vogtle Electric Generating Plant, Units 1 & 2 Financial Assurance Requirements for Decommissioning Nuclear Power Reactors (10 CFR 50.75(f)(1))
Enclosure 2 Oglethorpe Power Corporation Response An E.iacln Uembe~hip March 3, 2015 Docket Nos.: 50-424 50-425 U. S. Nuclear Regulatory Commission ATTN: Document Control Desk Washington, D.C. 20555 Vogtle Electric Generating Plant Financial Assurance Requirements for Decommissioning Nuclear Power Reactors (10 CFR 50.75(f)(1)}
Dear Ladies and Gentlemen:
Pursuant to 10 CFR 50.75(f)(1), each power reactor licensee is required to report to the NRC the status of its decommissioning funding for each reactor or part of each reactor it owns on a calendar year basis, beginning on March 31, 1999, and every two years thereafter.
Accordingly, Oglethorpe Power Corporation (OPC) hereby submits the enclosed information in accordance with 10 CFR 50.75(f)(1) for operating licenses NPF-68 and NPF-81 issued for Vogtle Electric Generating Plant Units 1 and 2, respectively.
Southern Nuclear Operating Company, as the operating licensee and as an agent for the owners of the Vogtle Electric Generating Plant, is providing this information to the NRC on behalf of OPC.Based on the information presented herein, there is reasonable assurance that the funding necessary for decommissioning of the Vogtle Electric Generating Plant, consistent with the NRC prescribed minimum set forth in 10 CFR 50.75(c), will be available on the expiration date of operating licenses NPF-68 and NPF-81.Please advise if you have any questions or comments regarding the information provided herein.Respectfully submitted,2 Anne F. Appleby Vice President, Treasurer Oglethorpe Power Corporation Enclosure Oglethorpe Power Corporation
- 2100 Easl Exchange Place.* Tucker. GA a30084-5336 Phone 770.270-7600 Fax 770-210-7872 0A member of the National Rural Elecfric Coopewative Association Enclosure Vogtle Electric Generating Plant Oglethorpe Power Corporation Ownership Percentage
-30.0%10 CFR 50.75(f)(1)
Requirement Unit I Unit 2 1 The NRC minimum decommissioning estimate, pursuant to 10 CFR 50.75(b) and (c). 1 $155,344,000 2 $155,344,000 2 The amount accumulated at the end of the $73,867,000
$66,911,000 calendar year preceding the date of the report for items included in 10 CFR 50.75(b) and (c).3 A schedule of the annual amounts remaining to be See Schedule in See Schedule in collected; for items in 10 CFR 50.75(b) and (c). Attachment 1 Attachment 1 4 The assumptions used regarding: (a) rates of escalation in decommissioning 2.41% 2.41%costs;(b) rates of earnings on decommissioning6.060%
funds;6 .06 0 %(c) real rate of return; and3.9359 (d) rates of other factors used in funding None None projections.
5 Any contracts upon which the licensee is relying None None pursuant to 10 CFR 50.75(e)(1)(v).
_________________
_________________
6 Any modifications to a licensee's current method None None of providing financial assurance occurring since the last submitted report.7 Any material changes to trust agreements.
In May 2013 replaced the In May 2013 replaced the international equity manager intemnational equity manager with another international with another international
_____________________________________________equity manager equity manager j"As a rural electric cooperative.
OPC's budget is approved by its Board of Directors annually.
The budget includes a 6%V rate of earnings assumption for the Hatch and Vogtle Nuclear Decommissioning Tnust Funds.The 6% rate of earnings assumption less the 2.41.% escalation rate results in a real rate of return of 3.59%NOTES: SThe NRC formulas in section 10 CFR 50.75(c) include only those decommissioning costs incurred by licensees to remove a facility or site safely from service and reduce residual radioactivity to levels that permit: (1) release of the property for unrestricted use and termination of the license; or (2) release of the property under restricted conditions and termination of the license. The cost of dismantling or demolishing non-radiological systems and structures is not included in the NRC decommissioning cost estimates.
The costs of managing and storing spent fuel on-site until transfer to DOE are not included in the cost formulas.2 This amount is based on NUREG-1 307, Rev. 15, for the burial factor (Option 2) and the December 2014 BLS data for labor and energy.
Attachment 1 Schedule of the Annual Amounts Remaining to be Collected Oglethorpe Power Cor'poration 2014 NRC MINIMUM Vogtle 1 g t.6Vogtle Rt Balance Balance Balance Year Begin Year Earnig Contribution End Year Year Begin Year E 2014 69,391,624 4,163,497 0 73.866,987 2014 62,857,914 2015 73,866.987 4,432.019 0 78,299,006 2015 66,9i0,931" 2016 78,299,006 4,697,940 0 82,996,947 2016 87 2017 82,996,947
'4,979,81 7 0 87,976.763 2017 75.l81.j22 2018 87,976,763 5,278,606 0 93,255.369 2018 79,691,989 2019 93.255,369 5,595.322 0 98,850.691 201i9 2020 98,850,691 5,931,041 0 104,781,733 2020 89,541,119 2021 104,781,733 6,286,904 0 111,068,637 2021 94,914.134 2022 111,068,637 6.664,118 0 117,732,755 2022 100,609,101 2023] 117,732,755 7,063.965 0 124,796,720 20"23 2024 124,796,720 7,487.803 0 1 32,284,524 2024 2025 132,284,524 p,937.071 0 140,221.595
', 2025 119,827,287 2026 140,221,595 8,413.296 0 148,634,891 2026 ) ,7.2 ,92 2027 1,18,634.891 8,918,093 0 157.552.984 2027 134,637,039 2028 157,552,984 9,453,179 0 t67,006,163 2028 142.716,2!16 2029 167,006,163 10,020.370 0 1 77,026,533 2029 151,279, i89 2030 177,026,533 10,621.592 0 187,648,125 2030 160,355,240 2031 187,648, 125 1 1.258,887 0 198.9117.012 2031 169,977,296 2032 198,907,012 1 1.934,421 0 210,841,433 2032 180,175,234 1 2033 210,841,433 12,650,486 0 223,491,919 2033 190,986,,i90 I 2034 223,491,919 13.409,515 0 236,901,431t 2034 I 2035 236,901,434 14.214.086 0 251,11I5,520 2035 214,592,i20 I 2036 251 ,115,520 15,066,931 0 266,182,452 2036 ?227 47 I 2037 266.182,452 15,970,947 0 282,153,399 2037 j2.t 1 2038 282,153,399 16,929,204 0 299,082,603 2038 T5h7, , I 2039 299,082,603 12,944,956 0 317,027,559 2039 2: ,'T;?,7SI%
2040 317,027,559 19,021,654 0 336,049,212 2040 73,C36 I 2041 336,049,212 20,162,953 0 356,21 2,165 2041 Y; 4., 3I 2042 356,212,165 21,372,730 0 377,584.895 2042 322.667,656 I 2043 377,584,895 22,655,094 0 400,239.988 2043 342,027,7,16 2 2044 400,239,988 24,014,399 0 424,254,388 2044 2 2045 424,254,388 25,455,263 0 449,709.651 2045 384,302,3,42 2 2046 449,709.651 26,982.579 0 476,692,230 2046 407,360,182 2 2047 476,692,230 28,601,534 0 505,293,764 2047 2 2048 2 2049 2 349,088,000 NRC 'vim frow 2/15 Ietter 6 Balance£arnings Contrbution End Year 3,771,421 4,014,656 4,255,535 4,510.867 4,781,519 5.068,411I 5,372,515 5,694,866 6.036,558 6.398,752 6,7 82.67 7 7,189,637 7,621,015 8.078,276 8,562,973 9,076,751I 9,621,356 0,198,638 0,810,556 1,459,189 2.146,741 2,875,545 3,648.078 4,466,963 5,334,980 6.255.079 7,230.384-8,264,207 9.360,059 0,521,663 2.752,963 3,058,140.4,441,629 25,908,127
.7 462,614 29,11I0,3-1 66,910,931 70,925,587 75,181,122 79,691,989 84,473.509 89,541,919 94,91,'1,434 100,609,301 106,645,859 113,044,610 119.827.287 127.016,924 134,637,939 142,716,216 151,279,189 160,355,940 169.977,296 180,175,934 190,986,490 202445,680 214,592.420 227,467,966 241.116.043 255,583,006 270,91 7,986 287,173.066 304.403,450 322,667,656 342,027,716 362,549,379 384.302,342 407,360,482 431,802.111 457,710,238 485,172,852 514,283,223 366,117,000 NRC Mm from 2/15 Ictc