Text

Decommissioning Funding Status Report
	ML16085A346
Person / Time
Site:	Millstone
Issue date:	03/24/2016
From:	Mark D. Sartain; Dominion Nuclear Connecticut
To:	; Document Control Desk, Office of Nuclear Material Safety and Safeguards
References
	16-107 DPR-021
	Download: ML16085A346 (6)
	v • d • e

Dominion Nuclear Connecticut, Inc.

5000 Dominion Boulevard, Glen Allen, VA 23060 Dominion Web Address: www.dom.com March 24, 2016 United States Nuclear Regulatory Commission Serial No.16-107 Attention: Document Control Desk NL&OS/TJS Rev.a 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, 2015 Table II - Decommissioning Funding Status Report for MPS1 Annual Cash Flow Analysis Starting January 1, 2016 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 2016 dollars is 0.99% and is based upon the average of CPl-U rates for that period. The mnemonics are "FCPIU.US, CPl-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 is held at 0% based on assuming a 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 MPS1 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 balances 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 that are not currently taxable.

8. Since the previous annual submittal on March 26, 2015 (Serial No.15-099) for MPS1 there have been no material changes to the Trust agreements established for nuclear decommissioning.

Serial No.16-107 MPS1 Decommissioning Funding Status Report Page 2 of 2 Please contact Mr. Craig D. Sly at (804) 273-2784 if you have any questions or require additional information.

Sincerely, Mark D. Sartain Vice President - Nuclear Engineering Dominion Nuclear Connecticut, Inc.

Attachment:

1. Decommissioning Funding Status Report for MPS1 Summary Information as of December 31, 2015 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

Serial No.16-107 Docket No.50-245 Attachment 1 Decommissioning Funding Status Report for MPS1 Summary Information as of December 31, 2015 Millstone Power Station - Unit 1 Dominion Nuclear Connecticut, Inc. (DNC)

Serial No.16-107 Docket No.50-245 Page 1 of 3 Millstone Power Station Unit 1 1

' Decommissioning Funding Status Report as of December 31, 2015 Table I Decommissioning Funding Status Report for MPS1 Summary Information as of December 31, 2015 10 CFR 50.82 (a)(8)(v)-(vii) lln mllllonsl Decommissioninci Trust Fund Balances 10 CFR Reference Is0.821all8lMIAl Is0.821all8llvllllAl Fund Balance Type of Trusts Comments

$ 444.104 Unit 1 aualified fund balance As of: 12/31/2015

$ - Unit 1 non-aualified fund balance As of: 12/31/2015

$ 0.977 Less costs incurred but not yet billed to Trust Actual Cost in: 2015 Dollars

$ 443.128 Adjusted decommissioning fund balance As of: 12/31/2015 Other Financial Assurance Methods Being Relied Upon 10 CFR Reference ls0.82(a)(8lMCAl I None Prior Years Decommissioning Expenditures 10 CFR Reference Iso.a21al18lMCAl I Total License Term Spent Fuel Mgmt Site Restoration Comments

$ 4.837 $ 0.941 $ 3.896 $ - 2015 Cost in: 2015 Dollars

$ 77.062 $ 45.612 $ 31.449 $ - 2001-2014 Cost in: As-Soent Dollars

$ 81.898 $ 46.553 $ 35.345 $ - Total Prior Year in: As-Soent Dollars Prior Year Decommissioning Expenditures Variance to Estimated Cost 10 CFR Reference ls0.821all8llvllBl I Total License Term Spent Fuel Mgmt Site Restoration Comments

$ 4.837 $ - $ - $ - Actual Cost in 2015 Dollars

$ 6.300 $ - $ - $ - NRCAuth $in 2015 Dollars

$ 11.463) $ - $ - $ -

Variance: Underrun to NRC Authorized Expenditures Remaining Decommissioning Estimated Cost 10 CFR Reference I50.82Ca)(8)(v)(Bl I50.82(all8lCvlllCBl Total License Termination Spent Fuel Mgmt Site Restoration Comments

$ 387.025 $ 286.288 $ 79.647 $ 21.091 Estimate in: 2016 Dollars Decommissioning Criteria Upon Which the Estimate is Based 10 CFR Reference lso.a21a11a11v1cs1 I SAFSTOR Any Modification To Method of Providing Financial Assurance 10 CFR Reference I50.82(a)(8)(v)(C) I None Any Material Changes To Trust Agreement Since Previous Report 10 CFR Reference I50.82CalC8lMCDl I None Need For Additional Financial Assurance 10CFR Reference Iso.a21al1Bllvll lso.a21al18Hvlil!Cl None See Annual Cash Flow Analysis in Table II Inputs to Remaining Cost and Funding Analysis I I 2016 Start year of Remainina Cost and Fundil'l!l analysis 0.99% Escalate study dollars from Study Year to Start Year of Analysis usina an averaae of CPI rates 0.00% Escalation rate 2016 & Beyond 2.00% Fund arowth rate 2016 & 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) Expenditures include withdrawals for spent fuel management, consistent with DNC's previous notices to the NRC, as well as allowed ordinary administrative costs.

Serial No.16-107 Docket No.50-245 Attachment 1 Page 2 of 3 Millstone Power Station Unit 1 Decommissioning Funding Status Report as of December 31, 2015 Table II Decommissioning Funding Status Report for MPS1 Annual Cash Flow Analysis Starting January 1, 2016 through End of Decommissioning 10 CFR 50.82 (a)(B)(v)-(vii)

(In millions)

Column 1 Column 2 Column 3 Column 4 Column 5 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 2% RRoR) (Reflects 0% Esc) (Reflects 0% Esc) (Reflects 0% Esc) (Reflects 0% Esc) Balance 2016 $ 443.128 $ 8.805 $ 1.050 $ 4.659 $ - $ 5.709 $ 446.224 2017 $ 446.224 $ 8.871 $ 0.925 $ 4.455 $ - $ 5.380 $ 449.715 2018 $ 449.715 $ 8.951 $ 0.923 $ 3.437 $ - $ 4.361 $ 454.306 2019 $ 454.306 $ 9.042 $ 0.923 $ 3.438 $ - $ 4.362 $ 458.986 2020 $ 458.986 $ 9.136 $ 0.923 $ 3.437 $ - $ 4.361 $ 463.762 2021 $ 463.762 $ 9.234 $ 1.554 $ 2.596 $ - $ 4.149 $ 468.846 2022 $ 468.846 $ 9.338 $ 1.554 $ 2.370 $ - $ 3.924 $ 474.260 2023 $ 474.260 $ 9.446 $ 1.554 $ 2.370 $ - $ 3.924 $ 479.783 2024 $ 479.783 $ 9.556 $ 1.554 $ 2.370 $ - $ 3.924 $ 485.415 2025 $ 485.415 $ 9.613 $ 6.820 $ 2.746 $ - $ 9.566 $ 485.462 2026 $ 485.462 $ 9.668 $ 1.554 $ 2.596 $ - $ 4.149 $ 490.980 2027 $ 490.980 $ 9.778 $ 1.554 $ 2.626 $ - $ 4.180 $ 496.578 2028 $ 496.578 $ 9.873 $ 1.554 $ 4.301 $ - $ 5.855 $ 500.595 2029 $ 500.595 $ 9.956 $ 1.554 $ 4.027 $ - $ 5.581 $ 504.971 2030 $ 504.971 $ 10.060 $ 1.554 $ 2.370 $ - $ 3.924 $ 511.107 2031 $ 511.107 $ 10.181 $ 1.554 $ 2.596 $ - $ 4.149 $ 517.138 2032 $ 517.138 $ 10.304 $ 1.554 $ 2.370 $ - $ 3.924 $ 523.518 2033 $ 523.518 $ 10.431 $ 1.554 $ 2.370 $ - $ 3.924 $ 530.026 2034 $ 530.026 $ 10.561 $ 1.554 $ 2.370 $ - $ 3.924 $ 536.663 2035 $ 536.663 $ 10.688 $ 2.181 $ 2.370 $ - $ 4.551 $ 542.800 2036 $ 542.800 $ 10.815 $ 1.554 $ 2.596 $ - $ 4.149 $ 549.465 2037 $ 549.465 $ 10.950 $ 1.554 $ 2.370 $ - $ 3.924 $ 556.492 2038 $ 556.492 $ 11.091 $ 1.554 $ 2.370 $ - $ 3.924 $ 563.659 2039 $ 563.659 $ 11.234 $ 1.554 $ 2.370 $ - $ 3.924 $ 570.969 2040 $ 570.969 $ 11.380 $ 1.554 $ 2.370 $ - $ 3.924 $ 578.425 2041 $ 578.425 $ 11.529 $ 1.554 $ 2.370 $ - $ 3.924 $ 586.031 2042 $ 586.031 $ 11.681 $ 1.554 $ 2.370 $ - $ 3.924 $ 593.789 2043 $ 593.789 $ 11.825 $ 2.742 $ 2.370 $ - $ 5.112 $ 600.502 2044 $ 600.502 $ 11.898 $ 10.654 $ 0.590 $ - $ 11.244 $ 601.155 2045 $ 601.155 $ 11.984 $ 3.896 $ - $ - $ 3.896 $ 609.243 2046 $ 609.243 $ 12.171 $ 1.413 $ - $ - $ 1.413 $ 620.001 2047 $ 620.001 $ 12.386 $ 1.413 $ - $ - $ 1.413 $ 630.974 2048 $ 630.974 $ 12.594 $ 2.553 $ - $ - $ 2.553 $ 641.015 2049 $ 641.015 $ 12.249 $ 57.145 $ - $ - $ 57.145 $ 596.119 2050 $ 596.119 $ 11.125 $ 79.702 $ - $ - $ 79.702 $ 527.542 2051 $ 527.542 $ 9.809 $ 74.206 $ - $ - $ 74.206 $ 463.145 2052 $ 463.145 $ 9.251 $ 1.202 $ - $ - $ 1.202 $ 471.194 2053 $ 471.194 $ 9.217 $ 0.104 $ - $ 20.631 $ 20.735 $ 459.676 2054 $ 459.676 $ 9.189 $ 0.039 $ - $ 0.366 $ 0.404 $ 468.461 2055 $ 468.461 $ 9.368 $ - $ - $ 0.094 $ 0.094 $ 477.735 2056 $ 477.735 $ 9.555 $ - $ - $ - $ - $ 487.290 2057 $ 487.290 $ 9.746 $ - $ - $ - $ - $ 497.035 2058 $ 497.035 $ 9.941 $ - $ - $ - $ - $ 506.976 2059 $ 506.976 $ 10.140 $ - $ - $ - $ - $ 517.116 2060 $ 517.116 $ 10.342 $ - $ - $ - $ - $ 527.458 2061 $ 527.458 $ 10.549 $ - $ - $ - $ - $ 538.007 2062 $ 538.007 $ 10.760 $ - $ - $ - $ - $ 548.767 2063 $ 548.767 $ 10.975 $ - $ - $ - $ - $ 559.743 2064 $ 559.743 $ 11.195 $ - $ - $ - $ - $ 570.937 2065 $ 570.937 $ 11.419 $ - $ - $ - $ - $ 582.356 2066 $ 582.356 $ 11.647 $ - $ - $ - $ - $ 594.003 2067 $ 594.003 $ 11.880 $ - $ - $ - $ - $ 605.883 2068 $ 605.883 $ 12.118 $ - $ - $ - $ - $ 618.001 2069 $ 618.001 $ 12.360 $ - $ - $ - $ - $ 630.361 2070 $ 630.361 $ 12.607 $ - $ - $ - $ - $ 642.968 2071 $ 642.968 $ 12.795 $ 6.396 $ - $ - $ 6.396 $ 649.368 Remaining $ In 2016 Dollars $ 286.288 $ 79.647 $ 21.091 $ 387.025 Est. Fund Balance (end of Decommissioning) (In Future $escalated at 0.0% & 2.0% Real Rate of Return Fund Growth Rate) $ 649.368 Est. Fund Balance (end of Decommissioning) discounted to 2016 Dollars Discount Rate = 2.00% $ 218.515

Serial No.16-107 Docket No.50-245 Attachment 1 Page 3 of 3 Table II Definitions:

'r; 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 2016 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 provides information on the status of funding for managing irradiated fuel as 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: (Any minor differences in totals are due to rounding.)

1) Trust Fund balance reflects market value on December 31, 2015, 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.