RA-17-0018, Duke Energy Carolinas, LLC - Biennial Decommissioning Financial Assurance Reports

Duke Energy Carolinas, LLC - Biennial Decommissioning Financial Assurance Reports

ML17088A690
Person / Time
Site:	Oconee, Mcguire, Catawba, Harris, Brunswick, Robinson, McGuire
Issue date:	03/29/2017
From:	Catherine Nolan Duke Energy Carolinas
To:	Document Control Desk, Office of Nuclear Reactor Regulation
References
RA-17-0018
Download: ML17088A690 (22)

Text

M. Christopher Nolan 526 S. Church Street Charlotte, NC 28202 Mailing Address:

EC2ZF / P.O. Box 1006 Charlotte, NC 28202 704.382.7426 Chris.Nolan@duke-energy.com 10 CFR 50.75(f)(1) 10 CFR 50.4 Serial: RA-17-0018 March 29, 2017 U.S. Nuclear Regulatory Commission Attention: Document Control Desk Washington, D.C. 20555-001 H.B. ROBINSON STEAM ELECTRIC PLANT, UNIT 2, DOCKET NO. 50-261 BRUNSWICK STEAM ELECTRIC PLANT, UNITS 1 AND 2, DOCKET NOS. 50-325, 50-324 SHEARON HARRIS NUCLEAR POWER PLANT, UNIT 1, DOCKET NO. 50-400 CATAWBA NUCLEAR STATION, UNITS 1 AND 2, DOCKET NOS. 50-413, 50-414 MCGUIRE NUCLEAR STATION, UNITS 1 AND 2, DOCKET NOS. 50-369, 50-370 OCONEE NUCLEAR STATION, UNITS 1, 2 AND 3, DOCKET NOS. 50-269, 50-270, 50-287

SUBJECT:

BIENNIAL DECOMMISSIONING FINANCIAL ASSURANCE REPORTS Ladies and Gentlemen:

Pursuant to 10 CFR 50.75(f)(1), Duke Energy Progress, LLC and Duke Energy Carolinas, LLC, collectively referred to henceforth as Duke Energy, is submitting the required Decommissioning Financial Assurance reports for H.B. Robinson Steam Electric Plant, Unit 2; Brunswick Steam Electric Plant, Units 1 and 2; Shearon Harris Nuclear Power Plant, Unit 1; Catawba Nuclear Station, Units 1 and 2; McGuire Nuclear Station, Units 1 and 2; and Oconee Nuclear Station, Units 1, 2 and 3. Enclosed are the required reports. The report for each nuclear plant contains the following information:

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

(2) Amount accumulated to the end of the calendar year preceding the date of the report.

(3) Schedule of annual amounts remaining to be collected.

(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.

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

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

(7) Material changes to trust agreements.

U.S. Nuclear Regulatory Commission March 29, 2017 Page2 The adjustment factors for labor rates and energy costs used in Item ( 1) for the calculation in 10 CFR 50.75(c)(2) are determined using the December 2016 indices from the U.S. Department of Labor, Bureau of Labor Statistics.

As a convenience to the NRC, the biennial Financial Assurance reports from each co-owner for funding the decommissioning of Catawba Nuclear Station Units 1 and 2 are identified within each unit's report. However, none of the co-owners assumes any responsibility for the information contained in any other co-owner's report.

There are no regulatory commitments associated with this letter. If you have additional questions, please contact Art Zaremba at (980) 373-2062.

Sincerely, fo~

M. Christopher Nolan Director, Nuclear Regulatory Affairs

Enclosure:

NRC Decommissioning Funding Status Reports as of December 31, 2016

U.S. Nuclear Regulatory Commission March 29, 2017 Page 3 xc (with enclosure):

C. Haney, USNRC Region II - Regional Administrator J. D. Austin, USNRC Senior Resident Inspector - CNS G. A. Hutto, USNRC Senior Resident Inspector - MNS M. Riches, USNRC Senior Resident Inspector - HNP J. Zeiler, USNRC Senior Resident Inspector - RNP M. P. Catts, USNRC Senior Resident Inspector - BNP E. L. Crowe, USNRC Senior Resident Inspector - ONS M. C. Barillas, NRR Project Manager - HNP D. Galvin, NRR Project Manager - RNP M. Mahoney, NRR Project Manager - CNS & MNS A. L. Hon, NRR Project Manager - BNP S. S. Koenick, Senior Project Manager - ONS

U.S. Nuclear Regulatory Commission March 29, 2017 Page 4 bxc (with enclosure):

Chris Nolan Art Zaremba Kelvin Henderson Rounette Nader Tracey LeRoy Spencer Heuer File: (Corporate)

Electronic Licensing Library (ELL)

Tanya Hamilton Jeff Robertson Bentley Jones Christine Magner (For HNP Licensing/Nuclear Records Files)

Ernie Kapopoulos Tony Pilo Heidi Walters (For RNP Licensing/Nuclear Records Files)

Randy Gideon Lee Grzeck Bill Murray (For BNP Licensing/Nuclear Records Files)

Tom Simril Cecil Fletcher Tonya Lowery (For CNS Licensing/Nuclear Records Files)

North Carolina Municipal Power Agency No. 1 (NCMPA)

Electronic copy preferred: CatawbaContracts@electricities.org Piedmont Municipal Power Agency (PMPA)

Electronic copy preferred: Catawba_RegulatoryDox@pmpa.com North Carolina Electric Membership Corporation (NCEMC)

Electronic copy preferred: Catawba.Manager@ncemcs.com Tom Ray Chris Wasik Michele Shealy (For ONS Licensing/Nuclear Records Files)

Steven Capps Jeff Thomas P. T. Vu (For MNS Licensing/Nuclear Records Files)

ONS Master File - ON03DM (File OS 801.01)

MNS Master File - MG02DM (file MC 801.01)

CNS Master File - CN04DM (File CN 801.01)

ENCLOSURE NRC DECOMMISIONING FUNDING STATUS REPORTS AS OF DECEMBER 31, 2016

NRC Decommissioning Funding Status Report Report Dated as of December 31, 2016 Duke Energy Progress, LLC Robinson Nuclear Station 100% Ownership Unit #2 Robinson Unit 2

1. The minimum decommissioning fund estimate, pursuant to 10 CFR 50.75 (b) and (c). $ 409,189,430

2. The amount accumulated at the end of the calendar year preceding the date of the report for items included in 10 CFR 50.75 (b) and (c). (Alternatively, the total amount accumulated at the end of the calendar year preceding the date of the report can be reported here if the cover letter transmitting the report provides the total estimate and indicates what portion of that estimate is Qualified Non Qualified for items not included in 10 CFR 50.75 (b) and (c)). 1,2 $ 546,427,530 $ 20,935,315

3. A schedule of the annual amounts remaining to be collected; Year Qualified Non Qualified for items in 10 CFR 50.75 (b) and (c). (Alternatively, the annual 2017 $ - $ -

amounts remaining to be collected can include items beyond those 2018 $ - $ -

required in 10 CFR 50.75 (b) and (c) if the cover letter 2019 $ - $ -

transmitting the report provides a total cost estimate and 2020 $ - $ -

indicates what portion of that estimate is for items that are not 2021 $ - $ -

included in 10 CFR 50.75 (b) and (c). 2 2022 $ - $ -

2023 $ - $ -

2024 $ - $ -

2025 $ - $ -

2026 $ - $ -

2027 $ - $ -

2028 $ - $ -

2029 $ - $ -

2030 $ - $ -

Total $ - $ -

4. The assumptions used regarding escalation in decommissioning 2.61% inflation cost, rates of earnings on decommissioning funds, and rates of 4.65% qualified rate of return other factors used in funding projections; 2.71% non-qualified rate of return

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

6. Any modifications to a licensees current method providing financial assurance occurring since the last submitted report. N/A

7. Any material changes to trust agreements. Effective close of business December 31, 2015, the Duke Energy Progress, LLC Nuclear Decommissioning Master Trust Agreement was amended to reflect a change in Trustee from State Street Bank and Trust to The Bank of New York Mellon.

1 The amounts reported are net of tax obligations.

2 The amounts accumulated and the annual amounts remaining to be collected, together with future earnings on such amounts, include funding for both estimated reactor and ISFSI decommissioning costs.

NRC Decommissioning Funding Status Report Report Dated as of December 31, 2016 Duke Energy Progress, LLC Brunswick Nuclear Station 100% Ownership Unit #1 Brunswick Unit 1

1. The minimum decommissioning fund estimate, pursuant to 10 CFR 50.75 (b) and (c). $ 619,772,102

2. The amount accumulated at the end of the calendar year preceding the date of the report for items included in 10 CFR 50.75 (b) and (c). (Alternatively, the total amount accumulated at the end of the calendar year preceding the date of the report can be reported here if the cover letter transmitting the report provides the total estimate and indicates what portion of that estimate is Qualified Non Qualified 1,2 for items not included in 10 CFR 50.75 (b) and (c)). $ 348,645,545 $ 153,258,946

3. A schedule of the annual amounts remaining to be collected; Year Qualified Non Qualified for items in 10 CFR 50.75 (b) and (c). (Alternatively, the annual 2017 $ - $ -

amounts remaining to be collected can include items beyond those 2018 $ - $ -

required in 10 CFR 50.75 (b) and (c) if the cover letter 2019 $ - $ -

transmitting the report provides a total cost estimate and 2020 $ - $ -

indicates what portion of that estimate is for items that are not 2021 $ - $ -

2 included in 10 CFR 50.75 (b) and (c). 2022 $ - $ -

2023 $ - $ -

2024 $ - $ -

2025 $ - $ -

2026 $ - $ -

2027 $ - $ -

2028 $ - $ -

2029 $ - $ -

2030 $ - $ -

2031 $ - $ -

2032 $ - $ -

2033 $ - $ -

2034 $ - $ -

2035 $ - $ -

2036 $ - $ -

Total $ - $ -

4. The assumptions used regarding escalation in decommissioning 2.70% inflation cost, rates of earnings on decommissioning funds, and rates of 5.11% qualified rate of return other factors used in funding projections; 2.71% non-qualified rate of return

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

6. Any modifications to a licensees current method providing financial assurance occurring since the last submitted report. N/A

7. Any material changes to trust agreements. Effective close of business December 31, 2015, the Duke Energy Progress, LLC Nuclear Decommissioning Master Trust Agreement was amended to reflect a change in Trustee from State Street Bank and Trust to The Bank of New York Mellon.

1 The amounts reported are net of tax obligations.

2 The amounts accumulated and the annual amounts remaining to be collected, together with future earnings on such amounts, include funding for both estimated reactor and ISFSI decommissioning costs.

NRC Decommissioning Funding Status Report Report Dated as of December 31, 2016 Duke Energy Progress, LLC Brunswick Nuclear Station 100% Ownership Unit #2 Brunswick Unit 2

1. The minimum decommissioning fund estimate, pursuant to 10 CFR 50.75 (b) and (c). $ 619,772,102

2. The amount accumulated at the end of the calendar year preceding the date of the report for items included in 10 CFR 50.75 (b) and (c). (Alternatively, the total amount accumulated at the end of the calendar year preceding the date of the report can be reported here if the cover letter transmitting the report provides the total estimate and indicates what portion of that estimate is Qualified Non Qualified for items not included in 10 CFR 50.75 (b) and (c)). 1 $ 405,667,785 $ 149,226,120

3. A schedule of the annual amounts remaining to be collected; Year Qualified Non Qualified for items in 10 CFR 50.75 (b) and (c). (Alternatively, the annual 2017 $ - $ -

amounts remaining to be collected can include items beyond those 2018 $ - $ -

required in 10 CFR 50.75 (b) and (c) if the cover letter 2019 $ - $ -

transmitting the report provides a total cost estimate and 2020 $ - $ -

indicates what portion of that estimate is for items that are not 2021 $ - $ -

included in 10 CFR 50.75 (b) and (c). 2022 $ - $ -

2023 $ - $ -

2024 $ - $ -

2025 $ - $ -

2026 $ - $ -

2027 $ - $ -

2028 $ - $ -

2029 $ - $ -

2030 $ - $ -

2031 $ - $ -

2032 $ - $ -

2033 $ - $ -

2034 $ - $ -

Total $ - $ -

4. The assumptions used regarding escalation in decommissioning 2.68% inflation cost, rates of earnings on decommissioning funds, and rates of 5.06% qualified rate of return other factors used in funding projections; 2.71% non-qualified rate of return

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

6. Any modifications to a licensees current method providing financial assurance occurring since the last submitted report. N/A

7. Any material changes to trust agreements. Effective close of business December 31, 2015, the Duke Energy Progress, LLC Nuclear Decommissioning Master Trust Agreement was amended to reflect a change in Trustee from State Street Bank and Trust to The Bank of New York Mellon.

1 The amounts reported are net of tax obligations.

NRC Decommissioning Funding Status Report Report Dated as of December 31, 2016 Duke Energy Progress, LLC Harris Nuclear Station 100% Ownership Unit #1 Harris Unit 1

1. The minimum decommissioning fund estimate, pursuant to 10 CFR 50.75 (b) and (c). $ 465,443,031

2. The amount accumulated at the end of the calendar year preceding the date of the report for items included in 10 CFR 50.75 (b) and (c). (Alternatively, the total amount accumulated at the end of the calendar year preceding the date of the report can be reported here if the cover letter transmitting the report provides the total estimate and indicates what portion of that estimate is Qualified Non Qualified for items not included in 10 CFR 50.75 (b) and (c)). 1 $ 404,682,076 $ 88,170,376

3. A schedule of the annual amounts remaining to be collected; Year Qualified Non Qualified for items in 10 CFR 50.75 (b) and (c). (Alternatively, the annual 2017 $ - $ -

amounts remaining to be collected can include items beyond those 2018 $ - $ -

required in 10 CFR 50.75 (b) and (c) if the cover letter 2019 $ - $ -

transmitting the report provides a total cost estimate and 2020 $ - $ -

indicates what portion of that estimate is for items that are not 2021 $ - $ -

included in 10 CFR 50.75 (b) and (c). 2022 $ - $ -

2023 $ - $ -

2024 $ - $ -

2025 $ - $ -

2026 $ - $ -

2027 $ - $ -

2028 $ - $ -

2029 $ - $ -

2030 $ - $ -

2031 $ - $ -

2032 $ - $ -

2033 $ - $ -

2034 $ - $ -

2035 $ - $ -

2036 $ - $ -

2037 $ - $ -

2038 $ - $ -

2039 $ - $ -

2040 $ - $ -

2041 $ - $ -

2042 $ - $ -

2043 $ - $ -

2044 $ - $ -

2045 $ - $ -

2046 $ - $ -

Total $ - $ -

4. The assumptions used regarding escalation in decommissioning 2.50% inflation cost, rates of earnings on decommissioning funds, and rates of 4.94% qualified rate of return other factors used in funding projections; 2.71% non-qualified rate of return

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

6. Any modifications to a licensees current method providing financial assurance occurring since the last submitted report. N/A

7. Any material changes to trust agreements. Effective close of business December 31, 2015, the Duke Energy Progress, LLC Nuclear Decommissioning Master Trust Agreement was amended to reflect a change in Trustee from State Street Bank and Trust to The Bank of New York Mellon.

1 The amounts reported are net of tax obligations.

NRC Decommissioning Funding Status Report Report Dated as of December 31, 2016 Duke Energy Carolinas, LLC Oconee Nuclear Station 100% Ownership Unit #1 Oconee Unit 1

1. The minimum decommissioning fund estimate, pursuant to 10 CFR 50.75 (b) and (c). $ 417,816,454

2. The amount accumulated at the end of the calendar year preceding the date of the report for items included in 10 CFR 50.75 (b) and (c). (Alternatively, the total amount accumulated at the end of the calendar year preceding the date of the report can be reported here if the cover letter transmitting the report provides the total estimate and indicates what portion of that estimate is Qualified Non Qualified for items not included in 10 CFR 50.75 (b) and (c)). 1 $ 390,331,813 $ 22,167,240

3. A schedule of the annual amounts remaining to be collected; Year Qualified Non Qualified for items in 10 CFR 50.75 (b) and (c). (Alternatively, the annual 2017 $ - $ -

amounts remaining to be collected can include items beyond those 2018 $ - $ -

required in 10 CFR 50.75 (b) and (c) if the cover letter 2019 $ - $ -

transmitting the report provides a total cost estimate and 2020 $ - $ -

indicates what portion of that estimate is for items that are not 2021 $ - $ -

included in 10 CFR 50.75 (b) and (c). 2022 $ - $ -

2023 $ - $ -

2024 $ - $ -

2025 $ - $ -

2026 $ - $ -

2027 $ - $ -

2028 $ - $ -

2029 $ - $ -

2030 $ - $ -

2031 $ - $ -

2032 $ - $ -

2033 $ - $ -

Total $ - $ -

4. The assumptions used regarding escalation in decommissioning 2.4% inflation cost, rates of earnings on decommissioning funds, and rates of 5.3% qualified rate of return other factors used in funding projections; 4.5% non-qualified rate of return

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

6. Any modifications to a licensees current method providing financial assurance occurring since the last submitted report. N/A

7. Any material changes to trust agreements. N/A 1

The amounts reported are net of tax obligations.

NRC Decommissioning Funding Status Report Report Dated as of December 31, 2016 Duke Energy Carolinas, LLC Oconee Nuclear Station 100% Ownership Unit #2 Oconee Unit 2

1. The minimum decommissioning fund estimate, pursuant to 10 CFR 50.75 (b) and (c). $ 417,816,454

2. The amount accumulated at the end of the calendar year preceding the date of the report for items included in 10 CFR 50.75 (b) and (c). (Alternatively, the total amount accumulated at the end of the calendar year preceding the date of the report can be reported here if the cover letter transmitting the report provides the total estimate and indicates what portion of that estimate is Qualified Non Qualified for items not included in 10 CFR 50.75 (b) and (c)). 1 $ 392,261,193 $ 17,882,211

3. A schedule of the annual amounts remaining to be collected; Year Qualified Non Qualified for items in 10 CFR 50.75 (b) and (c). (Alternatively, the annual 2017 $ - $ -

amounts remaining to be collected can include items beyond those 2018 $ - $ -

required in 10 CFR 50.75 (b) and (c) if the cover letter 2019 $ - $ -

transmitting the report provides a total cost estimate and 2020 $ - $ -

indicates what portion of that estimate is for items that are not 2021 $ - $ -

included in 10 CFR 50.75 (b) and (c). 2022 $ - $ -

2023 $ - $ -

2024 $ - $ -

2025 $ - $ -

2026 $ - $ -

2027 $ - $ -

2028 $ - $ -

2029 $ - $ -

2030 $ - $ -

2031 $ - $ -

2032 $ - $ -

2033 $ - $ -

Total $ - $ -

4. The assumptions used regarding escalation in decommissioning 2.4% inflation cost, rates of earnings on decommissioning funds, and rates of 5.3% qualified rate of return other factors used in funding projections; 4.5% non-qualified rate of return

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

6. Any modifications to a licensees current method providing financial assurance occurring since the last submitted report. N/A

7. Any material changes to trust agreements. N/A 1

The amounts reported are net of tax obligations.

NRC Decommissioning Funding Status Report Report Dated as of December 31, 2016 Duke Energy Carolinas, LLC Oconee Nuclear Station 100% Ownership Unit #3 Oconee Unit 3

1. The minimum decommissioning fund estimate, pursuant to 10 CFR 50.75 (b) and (c). $ 417,816,454

2. The amount accumulated at the end of the calendar year preceding the date of the report for items included in 10 CFR 50.75 (b) and (c). (Alternatively, the total amount accumulated at the end of the calendar year preceding the date of the report can be reported here if the cover letter transmitting the report provides the total estimate and indicates what portion of that estimate is Qualified Non Qualified 1,2 for items not included in 10 CFR 50.75 (b) and (c)). $ 532,953,352 $ 5,069,666

3. A schedule of the annual amounts remaining to be collected; Year Qualified Non Qualified for items in 10 CFR 50.75 (b) and (c). (Alternatively, the annual 2017 $ - $ -

amounts remaining to be collected can include items beyond those 2018 $ - $ -

required in 10 CFR 50.75 (b) and (c) if the cover letter 2019 $ - $ -

transmitting the report provides a total cost estimate and 2020 $ - $ -

indicates what portion of that estimate is for items that are not 2021 $ - $ -

included in 10 CFR 50.75 (b) and (c). 2022 $ - $ -

2023 $ - $ -

2024 $ - $ -

2025 $ - $ -

2026 $ - $ -

2027 $ - $ -

2028 $ - $ -

2029 $ - $ -

2030 $ - $ -

2031 $ - $ -

2032 $ - $ -

2033 $ - $ -

2034 $ - $ -

Total $ - $ -

4. The assumptions used regarding escalation in decommissioning 2.4% inflation cost, rates of earnings on decommissioning funds, and rates of 5.3% qualified rate of return other factors used in funding projections; 4.5% non-qualified rate of return

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

6. Any modifications to a licensees current method providing financial assurance occurring since the last submitted report. N/A

7. Any material changes to trust agreements. N/A 1

The amounts reported are net of tax obligations.

2 The amounts accumulated, together with future earnings on such amounts, include funding for both estimated reactor and ISFSI decommissioning costs.

NRC Decommissioning Funding Status Report Report Dated as of December 31, 2016 Duke Energy Carolinas, LLC McGuire Nuclear Station 100% Ownership Unit #1 McGuire Unit 1

1. The minimum decommissioning fund estimate, pursuant to 10 CFR 50.75 (b) and (c). $ 484,152,529

2. The amount accumulated at the end of the calendar year preceding the date of the report for items included in 10 CFR 50.75 (b) and (c). (Alternatively, the total amount accumulated at the end of the calendar year preceding the date of the report can be reported here if the cover letter transmitting the report provides the total estimate and indicates what portion of that estimate is Qualified Non Qualified 1

for items not included in 10 CFR 50.75 (b) and (c)). $ 496,952,458 $ 1,603,933

3. A schedule of the annual amounts remaining to be collected; Year Qualified Non Qualified for items in 10 CFR 50.75 (b) and (c). (Alternatively, the annual 2017 $ - $ -

amounts remaining to be collected can include items beyond those 2018 $ - $ -

required in 10 CFR 50.75 (b) and (c) if the cover letter 2019 $ - $ -

transmitting the report provides a total cost estimate and 2020 $ - $ -

indicates what portion of that estimate is for items that are not 2021 $ - $ -

included in 10 CFR 50.75 (b) and (c). 2022 $ - $ -

2023 $ - $ -

2024 $ - $ -

2025 $ - $ -

2026 $ - $ -

2027 $ - $ -

2028 $ - $ -

2029 $ - $ -

2030 $ - $ -

2031 $ - $ -

2032 $ - $ -

2033 $ - $ -

2034 $ - $ -

2035 $ - $ -

2036 $ - $ -

2037 $ - $ -

2038 $ - $ -

2039 $ - $ -

2040 $ - $ -

2041 $ - $ -

Total $ - $ -

4. The assumptions used regarding escalation in decommissioning 2.4% inflation cost, rates of earnings on decommissioning funds, and rates of 5.3% qualified rate of return other factors used in funding projections; 4.5% non-qualified rate of return

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

6. Any modifications to a licensees current method providing financial assurance occurring since the last submitted report. N/A

7. Any material changes to trust agreements. N/A 1

The amounts reported are net of tax obligations.

NRC Decommissioning Funding Status Report Report Dated as of December 31, 2016 Duke Energy Carolinas, LLC McGuire Nuclear Station 100% Ownership Unit #2 McGuire Unit 2

1. The minimum decommissioning fund estimate, pursuant to 10 CFR 50.75 (b) and (c). $ 484,152,529

2. The amount accumulated at the end of the calendar year preceding the date of the report for items included in 10 CFR 50.75 (b) and (c). (Alternatively, the total amount accumulated at the end of the calendar year preceding the date of the report can be reported here if the cover letter transmitting the report provides the total estimate and indicates what portion of that estimate is Qualified Non Qualified 1,2 for items not included in 10 CFR 50.75 (b) and (c)). $ 545,933,242 $ -

3. A schedule of the annual amounts remaining to be collected; Year Qualified Non Qualified for items in 10 CFR 50.75 (b) and (c). (Alternatively, the annual 2017 $ - $ -

amounts remaining to be collected can include items beyond those 2018 $ - $ -

required in 10 CFR 50.75 (b) and (c) if the cover letter 2019 $ - $ -

transmitting the report provides a total cost estimate and 2020 $ - $ -

indicates what portion of that estimate is for items that are not 2021 $ - $ -

included in 10 CFR 50.75 (b) and (c). 2022 $ - $ -

2023 $ - $ -

2024 $ - $ -

2025 $ - $ -

2026 $ - $ -

2027 $ - $ -

2028 $ - $ -

2029 $ - $ -

2030 $ - $ -

2031 $ - $ -

2032 $ - $ -

2033 $ - $ -

2034 $ - $ -

2035 $ - $ -

2036 $ - $ -

2037 $ - $ -

2038 $ - $ -

2039 $ - $ -

2040 $ - $ -

2041 $ - $ -

2042 $ - $ -

2043 $ - $ -

Total $ - $ -

4. The assumptions used regarding escalation in decommissioning 2.4% inflation cost, rates of earnings on decommissioning funds, and rates of 5.3% qualified rate of return other factors used in funding projections; 4.5% non-qualified rate of return

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

6. Any modifications to a licensees current method providing financial assurance occurring since the last submitted report. N/A

7. Any material changes to trust agreements. N/A 1

The amounts reported are net of tax obligations.

2 The amounts accumulated, together with future earnings on such amounts, include funding for both estimated reactor and ISFSI decommissioning costs.

NRC Decommissioning Funding Status Report Report Dated as of December 31, 2016 Duke Energy Carolinas, LLC Catawba Nuclear Station 19.246% Ownership Unit #1 Catawba Unit 1

1. The minimum decommissioning fund estimate, pursuant to 10 CFR 50.75 (b) and (c). $ 86,511,257

2. The amount accumulated at the end of the calendar year preceding the date of the report for items included in 10 CFR 50.75 (b) and (c). (Alternatively, the total amount accumulated at the end of the calendar year preceding the date of the report can be reported here if the cover letter transmitting the report provides the total estimate and indicates what portion of that estimate is Qualified Non Qualified for items not included in 10 CFR 50.75 (b) and (c)). 1 $ 92,952,953 $ 7,443,958

3. A schedule of the annual amounts remaining to be collected; Year Qualified Non Qualified for items in 10 CFR 50.75 (b) and (c). (Alternatively, the annual 2017 $ - $ -

amounts remaining to be collected can include items beyond those 2018 $ - $ -

required in 10 CFR 50.75 (b) and (c) if the cover letter 2019 $ - $ -

transmitting the report provides a total cost estimate and 2020 $ - $ -

indicates what portion of that estimate is for items that are not 2021 $ - $ -

included in 10 CFR 50.75 (b) and (c). 2022 $ - $ -

2023 $ - $ -

2024 $ - $ -

2025 $ - $ -

2026 $ - $ -

2027 $ - $ -

2028 $ - $ -

2029 $ - $ -

2030 $ - $ -

2031 $ - $ -

2032 $ - $ -

2033 $ - $ -

2034 $ - $ -

2035 $ - $ -

2036 $ - $ -

2037 $ - $ -

2038 $ - $ -

2039 $ - $ -

2040 $ - $ -

2041 $ - $ -

2042 $ - $ -

2043 $ - $ -

Total $ - $ -

4. The assumptions used regarding escalation in decommissioning 2.4% inflation cost, rates of earnings on decommissioning funds, and rates of 5.3% qualified rate of return other factors used in funding projections; 4.5% non-qualified rate of return

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

6. Any modifications to a licensees current method providing financial assurance occurring since the last submitted report. N/A

7. Any material changes to trust agreements. N/A 1

The amounts reported are net of tax obligations.

NRC Decommissioning Funding Status Report Report Dated as of December 31, 2016 Duke Energy Carolinas, LLC Catawba Nuclear Station 19.246% Ownership Unit #2 Catawba Unit 2

1. The minimum decommissioning fund estimate, pursuant to 10 CFR 50.75 (b) and (c). $ 86,511,257

2. The amount accumulated at the end of the calendar year preceding the date of the report for items included in 10 CFR 50.75 (b) and (c). (Alternatively, the total amount accumulated at the end of the calendar year preceding the date of the report can be reported here if the cover letter transmitting the report provides the total estimate and indicates what portion of that estimate is Qualified Non Qualified 1,2 for items not included in 10 CFR 50.75 (b) and (c)). $ 78,746,926 $ 21,710,940

3. A schedule of the annual amounts remaining to be collected; Year Qualified Non Qualified for items in 10 CFR 50.75 (b) and (c). (Alternatively, the annual 2017 $ - $ -

amounts remaining to be collected can include items beyond those 2018 $ - $ -

required in 10 CFR 50.75 (b) and (c) if the cover letter 2019 $ - $ -

transmitting the report provides a total cost estimate and 2020 $ - $ -

indicates what portion of that estimate is for items that are not 2021 $ - $ -

included in 10 CFR 50.75 (b) and (c). 2022 $ - $ -

2023 $ - $ -

2024 $ - $ -

2025 $ - $ -

2026 $ - $ -

2027 $ - $ -

2028 $ - $ -

2029 $ - $ -

2030 $ - $ -

2031 $ - $ -

2032 $ - $ -

2033 $ - $ -

2034 $ - $ -

2035 $ - $ -

2036 $ - $ -

2037 $ - $ -

2038 $ - $ -

2039 $ - $ -

2040 $ - $ -

2041 $ - $ -

2042 $ - $ -

2043 $ - $ -

Total $ - $ -

4. The assumptions used regarding escalation in decommissioning 2.4% inflation cost, rates of earnings on decommissioning funds, and rates of 5.3% qualified rate of return other factors used in funding projections; 4.5% non-qualified rate of return

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

6. Any modifications to a licensees current method providing financial assurance occurring since the last submitted report. N/A

7. Any material changes to trust agreements. N/A 1

The amounts reported are net of tax obligations.

2 The amounts accumulated, together with future earnings on such amounts, include funding for both estimated reactor and ISFSI decommissioning costs.

NRC Decommissioning Funding Status Report Report Dated as of December 31, 2016 North Carolina Electric Membership Corporation Catawba Nuclear Station 30.754% Ownership Unit #1

1. The minimum decommissioning fund estimate, pursuant to 10 CFR 50.75 (b) and (c). $ 138,240,008

2. The amount accumulated at the end of the calendar year preceding the date of the report for items included in 10 CFR 50.75 (b) and (c). (Alternatively, the total amount accumulated at the end of the calendar year preceding the date of the report can be reported here if the cover letter transmitting the report provides the total estimate and indicates what portion of that estimate is for items not included in 10 CFR 50.75 (b) and (c)). 1 $ 98,123,418

3. A schedule of the annual amounts remaining to be collected; for items in 10 CFR 50.75 (b) and (c). (Alternatively, the annual amounts remaining to be collected can include items beyond those required in 10 CFR 50.75 (b) and (c) if the cover letter transmitting the report provides a total cost estimate and indicates what portion of that estimate is for items that are not included in 10 CFR 50.75 (b) and (c).)

Year Amount 2017 $ 1,290,665 2018 $ 1,244,840 2019 $ 1,317,611 2020 $ 1,276,868 2021 $ 1,236,570 2022 $ 1,196,753 2023 $ 1,157,460 2024 $ 1,118,733 2025 $ 1,080,619 2026 $ 1,043,167 2027 $ 1,006,429 2028 $ 970,460 2029 $ 935,320 2030 $ 901,071 2031 $ 867,778 2032 $ 835,514 2033 $ 804,351 2034 $ 774,369 2035 $ 745,653 2036 $ 718,290 2037 $ 692,376 2038 $ 668,010 2039 $ 645,298 2040 $ 624,352 2041 $ 605,291 2042 $ 588,239 2043 Total 24,346,087

4. The assumptions used regarding escalation in decommissioning inflation - 2.50 %

cost, rates of earnings on decommissioning funds, and rates of rate of return - 4.75 %

other factors used in funding projections;

5. Any contracts upon which the licensee is relying pursuant to None 10 CFR 50.75(e)(1)(v).

6. Any modifications to a licensees current method providing None financial assurance occurring since the last submitted report.

7. Any material changes to trust agreements. None 1

The owner is tax exempt; therefore, the amounts reported are net of tax.

NRC Decommissioning Funding Status Report Report Dated as of December 31, 2016 North Carolina Electric Membership Corporation Catawba Nuclear Station 30.754% Ownership Unit #2

1. The minimum decommissioning fund estimate, pursuant to 10 CFR 50.75 (b) and (c). $ 138,240,008

2. The amount accumulated at the end of the calendar year preceding the date of the report for items included in 10 CFR 50.75 (b) and (c). (Alternatively, the total amount accumulated at the end of the calendar year preceding the date of the report can be reported here if the cover letter transmitting the report provides the total estimate and indicates what portion of that estimate is for items not included in 10 CFR 50.75 (b) and (c)). 1,2 $ 102,460,195

3. A schedule of the annual amounts remaining to be collected; for items in 10 CFR 50.75 (b) and (c). (Alternatively, the annual amounts remaining to be collected can include items beyond those required in 10 CFR 50.75 (b) and (c) if the cover letter transmitting the report provides a total cost estimate and indicates what portion of that estimate is for items that are not included in 10 CFR 50.75 (b) and (c).)

Year Amount 2017 $ 1,347,653 2018 $ 1,299,805 2019 $ 1,375,788 2020 $ 1,333,247 2021 $ 1,291,169 2022 $ 1,249,594 2023 $ 1,208,566 2024 $ 1,168,129 2025 $ 1,128,332 2026 $ 1,089,227 2027 $ 1,050,866 2028 $ 1,013,310 2029 $ 976,618 2030 $ 940,856 2031 $ 906,094 2032 $ 872,405 2033 $ 839,866 2034 $ 808,560 2035 $ 778,576 2036 $ 750,006 2037 $ 722,947 2038 $ 697,505 2039 $ 673,790 2040 $ 651,919 2041 $ 632,016 2042 $ 614,212 2043 Total $ 25,421,056

4. The assumptions used regarding escalation in decommissioning inflation - 2.50 %

cost, rates of earnings on decommissioning funds, and rates of rate of return - 4.75 %

other factors used in funding projections;

5. Any contracts upon which the licensee is relying pursuant to None 10 CFR 50.75(e)(1)(v).

6. Any modifications to a licensees current method providing None financial assurance occurring since the last submitted report.

7. Any material changes to trust agreements. None 1

The owner is tax exempt; therefore, the amounts reported are net of tax.

2 The amount accumulated and the annual amounts remaining to be collected, together with future earnings on such amounts, include funding for both estimated reactor and ISFSI decommissioning costs.

NRC Decommissioning Funding Status Report Report Dated as of December 31, 2016 North Carolina Municipal Power Agency 1 Catawba Nuclear Station 37.5% Ownership Unit #1

1. The minimum decommissioning fund estimate, pursuant to 10 CFR 50.75 (b) and (c). $ 168,563,449

2. The amount accumulated at the end of the calendar year preceding the date of the report for items included in 10 CFR 50.75 (b) and (c). (Alternatively, the total amount accumulated at the end of the calendar year preceding the date of the report can be reported here if the cover letter transmitting the report provides the total estimate and indicates what portion of that estimate is 1

for items not included in 10 CFR 50.75 (b) and (c)). $ 164,537,703

3. A schedule of the annual amounts remaining to be collected; for items in 10 CFR 50.75 (b) and (c). (Alternatively, the annual amounts remaining to be collected can include items beyond those required in 10 CFR 50.75 (b) and (c) if the cover letter transmitting the report provides a total cost estimate and indicates what portion of that estimate is for items that are not included in 10 CFR 50.75 (b) and (c).

Year Amount 2017 2,550,000 2018 1,500,000 2019 1,500,000 2020 1,500,000 2021 1,500,000 2022 1,500,000 2023 1,500,000 2024 1,500,000 2025 1,500,000 2026 1,500,000 2027 1,500,000 2028 1,500,000 2029 1,500,000 2030 1,500,000 2031 1,500,000 2032

• 1,500,000 2033 2034 2035 2036 2037 2038 2039 2040 2041 2042 2043 Total $ 25,050,000

1. of years to collect 16

• 2032 is the last year of the current Participant Project Power Sales Agreement.

4. The assumptions used regarding escalation in decommissioning inflation - 3.58%

cost, rates of earnings on decommissioning funds, and rates of rate of return - 3.40%

other factors used in funding projections;

5. Any contracts upon which the licensee is relying pursuant to 10 CFR 50.75(e)(1)(v). None

6. Any modifications to a licensees current method providing financial assurance occurring since the last submitted report. None

7. Any material changes to trust agreements. None 1

The owner is tax exempt; therefore, the amounts reported are net of tax.

NRC Decommissioning Funding Status Report Report Dated as of December 31, 2016 North Carolina Municipal Power Agency 1 Catawba Nuclear Station 37.5% Ownership Unit #2

1. The minimum decommissioning fund estimate, pursuant to 10 CFR 50.75 (b) and (c). $ 168,563,449

2. The amount accumulated at the end of the calendar year preceding the date of the report for items included in 10 CFR 50.75 (b) and (c). (Alternatively, the total amount accumulated at the end of the calendar year preceding the date of the report can be reported here if the cover letter transmitting the report provides the total estimate and indicates what portion of that estimate is for items not included in 10 CFR 50.75 (b) and (c)). 1,2 $ 160,398,424

3. A schedule of the annual amounts remaining to be collected; for items in 10 CFR 50.75 (b) and (c). (Alternatively, the annual amounts remaining to be collected can include items beyond those required in 10 CFR 50.75 (b) and (c) if the cover letter transmitting the report provides a total cost estimate and indicates what portion of that estimate is for items that are not included in 10 CFR 50.75 (b) and (c).

Year Amount 2017 3,250,000 2018 2,100,000 2019 2,100,000 2020 2,100,000 2021 2,100,000 2022 2,100,000 2023 2,100,000 2024 2,100,000 2025 2,100,000 2026 2,100,000 2027 2,100,000 2028 2,100,000 2029 2,100,000 2030 2,100,000 2031 2,100,000 2032 2,100,000 2033 2034 2035 2036 2037 2038 2039 2040 2041 2042 2043 Total $ 34,750,000

1. of years to collect 16

• 2032 is the last year of the current Participant Project Power Sales Agreement.

4. The assumptions used regarding escalation in decommissioning inflation - 3.58%

cost, rates of earnings on decommissioning funds, and rates of rate of return - 3.40%

other factors used in funding projections;

5. Any contracts upon which the licensee is relying pursuant to 10 CFR 50.75(e)(1)(v). None

6. Any modifications to a licensees current method providing financial assurance occurring since the last submitted report. None

7. Any material changes to trust agreements. None 1

The owner is tax exempt; therefore, the amounts reported are net of tax.

2 The amount accumulated and the annual amounts remaining to be collected, together with future earnings on such amounts, include funding for both estimated reactor and ISFSI decommissioning costs.

NRC Decommissioning Funding Status Report Report Dated as of December 31, 2016 Piedmont Municipal Power Agency Catawba Nuclear Station 12.5% Ownership Unit #1

1. The minimum decommissioning fund estimate, pursuant to 10 CFR 50.75 (b) and (c). $ 56,187,816

2. The amount accumulated at the end of the calendar year preceding the date of the report for items included in 10 CFR 50.75 (b) and (c). (Alternatively, the total amount accumulated at the end of the calendar year preceding the date of the report can be reported here if the cover letter transmitting the report provides the total estimate and indicates what portion of that estimate is 1

for items not included in 10 CFR 50.75 (b) and (c)). $ 33,959,630

3. A schedule of the annual amounts remaining to be collected; for items in 10 CFR 50.75 (b) and (c). (Alternatively, the annual amounts remaining to be collected can include items beyond those required in 10 CFR 50.75 (b) and (c) if the cover letter transmitting the report provides a total cost estimate and indicates what portion of that estimate is for items that are not included in 10 CFR 50.75 (b) and (c).

Year Amount 2017 $266,501 2018 $266,501 2019 $266,501 2020 $266,501 2021 $266,501 2022 $266,501 2023 $266,501 2024 $266,501 2025 $266,501 2026 $266,501 2027 $266,501 2028 $266,501 2029 $266,501 2030 $266,501 2031 $266,501 2032 $266,501 2033 $266,501 2034 $266,501 2035 $266,501 2036 $266,501 2037 $266,501 2038 $266,501 2039 $266,501 2040 $266,501 2041 $266,501 2042 $266,501 2043 $266,501 Total $ 7,195,536

4. The assumptions used regarding escalation in decommissioning inflation - 2.0%

cost, rates of earnings on decommissioning funds, and rates of rate of return - 3.5%

other factors used in funding projections;

5. Any contracts upon which the licensee is relying pursuant to 10 CFR 50.75(e)(1)(v). No

6. Any modifications to a licensees current method providing financial assurance occurring since the last submitted report. No

7. Any material changes to trust agreements. No 1

The owner is tax exempt; therefore, the amounts reported are net of tax.

NRC Decommissioning Funding Status Report Report Dated as of December 31, 2016 Piedmont Municipal Power Agency Catawba Nuclear Station 12.5% Ownership Unit #2

1. The minimum decommissioning fund estimate, pursuant to 10 CFR 50.75 (b) and (c). $ 56,187,816

2. The amount accumulated at the end of the calendar year preceding the date of the report for items included in 10 CFR 50.75 (b) and (c). (Alternatively, the total amount accumulated at the end of the calendar year preceding the date of the report can be reported here if the cover letter transmitting the report provides the total estimate and indicates what portion of that estimate is for items not included in 10 CFR 50.75 (b) and (c)). 1,2 $ 35,588,617

3. A schedule of the annual amounts remaining to be collected; for items in 10 CFR 50.75 (b) and (c). (Alternatively, the annual amounts remaining to be collected can include items beyond those required in 10 CFR 50.75 (b) and (c) if the cover letter transmitting the report provides a total cost estimate and indicates what portion of that estimate is for items that are not included in 10 CFR 50.75 (b) and (c).

Year Amount 2017 $173,763 2018 $173,763 2019 $173,763 2020 $173,763 2021 $173,763 2022 $173,763 2023 $173,763 2024 $173,763 2025 $173,763 2026 $173,763 2027 $173,763 2028 $173,763 2029 $173,763 2030 $173,763 2031 $173,763 2032 $173,763 2033 $173,763 2034 $173,763 2035 $173,763 2036 $173,763 2037 $173,763 2038 $173,763 2039 $173,763 2040 $173,763 2041 $173,763 2042 $173,763 2043 $173,763 Total $ 4,691,594

4. The assumptions used regarding escalation in decommissioning inflation - 2.0%

cost, rates of earnings on decommissioning funds, and rates of rate of return - 3.5%

other factors used in funding projections;

5. Any contracts upon which the licensee is relying pursuant to 10 CFR 50.75(e)(1)(v). No

6. Any modifications to a licensees current method providing financial assurance occurring since the last submitted report. No

7. Any material changes to trust agreements. No 1

The owner is tax exempt; therefore, the amounts reported are net of tax.

2 The amount accumulated and the annual amounts remaining to be collected, together with future earnings on such amounts, include funding for both estimated reactor and ISFSI decommissioning costs.