NL-17-0432, Financial Assurance Requirements for Decommissioning Nuclear Power Reactors
| ML17089A510 | |
| Person / Time | |
|---|---|
| Site: | Farley  |
| Issue date: | 03/30/2017 |
| From: | Hutto J Southern Nuclear Operating Co |
| To: | Document Control Desk, Office of Nuclear Reactor Regulation |
| References | |
| NL-17-0432 | |
| Download: ML17089A510 (10) | |
Text
4 Southern Nuclear March 30, 2017 Docket Nos.: 50-348 50-364 U. S. Nuclear Regulatory Commission ATIN: Document Control Desk Washington, D. C. 20555-0001 J.J. Hullo Regulatory AHalrs Director Joseph M. Farley Nuclear Plant Financial Assurance Requirements for Decommissioning Nuclear Power Reactors Ladies and Gentlemen:
40 Inverness Cantor Parkway Post Otllce Box 1295 Birmingham, AL 35242 205 992 5872 lei 205 992 7601 lax IJhuttoCsoulhemco.com NL-17-0432 10 CFR 50.75(f)(1)
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. Southern Nuclear Operating Company (Southern Nuclear) holds operating licenses NPF-2 and NPF-8 for the Joseph M. Farley Nuclear Plant Unit 1 and Unit 2, respectively, owned by Alabama Power Company. Accordingly, Southern Nuclear provides the enclosed Alabama Power Company Submittal in accordance with the requirements of 10 CFR 50.75(f)(1).
This letter contains no NRC commitments. If you have any questions, please contact Ken McElroy at 205.992.7369.
Respectfully submitted, J. J. Hutto Regulatory Affairs Director JJH/eb/lac
Enclosure:
Alabama Power Company Response
U.S. Nuclear Regulatory Commission NL-17-0432 Page2 cc:
Southern Nuclear Operating Company Mr. S. E. Kuczynski, Chairman, President & CEO Mr. D. G. Bost, Executive Vice President & Chief Nuclear Officer Mr. D. R. Madison, Vice President-Farley Mr. M. D. Meier, Vice President-Regulatory Affairs Mr. R. D. Gayheart, Fleet Operations General Manager Mr. B. J. Adams, Vice President-Engineering Ms. B. L. Taylor, Regulatory Affairs Manager-Farley RTYPE: CFA04.054 U. S. Nuclear Regulatory Commission Ms. C. Haney, Regional Administrator Mr. S. A. Williams, NRR Project Manager-Farley Mr. P. K. Niebaum, Senior Resident Inspector-Farley
Joseph M. Farley Nuclear Plant Financial Assurance Requirements for Decommissioning Nuclear Power Reactors Alabama Power Company Response
Christopher R. Blake, CPA, CMA Assistant Treasurer Treasury Services March 7, 2017 Docket Nos.: 50-348 50-364 600 North 1 Bth Street Post Office Box 2641 Birmingham, Alabama 35291-0040 Tel205.257.3618 Fax 205 257.2622 U. S. Nuclear Regulatory Commission ATIN: Document Control Desk Washington, D.C. 20555 Joseph M. Farley Nuclear Plant ALABAMA<<\\
POWER A SOUTHERN COMPANY 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. Alabama Power Company (APC) hereby submits the enclosed information in accordance with 1 0 CFR
- 50. 75(f)(1) for operating licenses DPR-57 and NPF-5 issued for Farley Nuclear Plant Unit 1 and 2, respectively. Southern Nuclear Operating Company, as the operating licensee and as an agent for the owners of Farley Nuclear Plant, is providing this information to the NRC on behalf of APC.
Based on the information presented herein, there is reasonable assurance that the funding necessary for decommissioning the Farley Nuclear 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 DPR-57 and NPF-5.
Please advise if you have any questions or comments regarding the information provided herein.
Respectfully submitted, t.V--
Christopher R. Blake Enclosure
1 2
3 4
5 6
7 NOTES:
Enclosure Alabama Power Company Ownership Percentage - 1 00%
10 CFR 50.75(f)(1) Requirement Unit 1 The NRC minimum decommissioning estimate,
$421,872,000 2 pursuant to 10 CFR 50.75(b) and (c). 1 The amount accumulated at the end of the calendar year preceding the date of the report for
$402,098,838 items included in 10 CFR 50.75(b) and (c).
A schedule of the annual amounts remaining to be See Schedule in collected; for items in 10 CFR 50.75(b) and (c).
The assumptions used regarding :
(a) rates of escalation in decommissioning 4.5%
costs; (b) rates of earnings on decommissioning 7.0%
funds; (c) real rate of return; and 2.5% 3 (d) rates of other factors used in funding N/A projections.
Any contracts upon which the licensee is relying N/A pursuant to 10 CFR 50.75(e)(1 )(v).
Any modifications to a licensee's current method None of providing financial assurance occurring since the last submitted report.
Any material changes to trust agreements.
See Attachment 3 Unit 2
$421,872,000 2
$388,100,905 See Schedule in 4.5%
7.0%
2.5% 3 N/A N/A None See Attachment 3 1 The 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-1307, Rev. 16, for the burial factor (Option 2) and the December 2016 BLS data for labor and energy.
3 The real rate of return of 2.5% was established by the Alabama Public Service Commission's Order pertaining to Informal Docket U-3295 and subsequent submittals pursuant to that Order, most recently on October 28, 2008.
Schedule of the Annual Amounts Remaining to be Collected-Unit 1
Year 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 2036 2037 Schedule of the Annual Amounts Remaining to be Collected Beginning Fund Balance 402,098,838 430,709,906 461,323,748 494,080,560 529,130,348 566,633,621 606,762,123 649,699,621 695,642,744 744,801,885 797,402,166 853,684,466 913,906,528 978,344,134 1,047,292,372 1 '121,066,987 1,200,005,825 1,284,470,382 1,374,847,458 1,471,550,929 1,575,023,643 Alabama Power Company Farley Nuclear Plant Unit 1 Fund Fund Earnings Contributions 28,146,919 464,149 30,149,693 464,149 32,292,662 464,149 34,585,639 464,149 37,039,124 464,149 39,664,353 464,149 42,473,349 464,149 45,478,973 464,149 48,694,992 464,149 52,136,132 464,149 55,818,152 464,149 59,757,913 464,149 63,973,457 464,149 68,484,089 464,149 73,310,466 464,149 78,474,689 464,149 84,000,408 464,149 89,912,927 464,149 96,239,322 464,149 103,008,565 464,149 110,251,655 464,149 Ending Fund Balance 402,098,838 430,709,906 461,323,748 494,080,560 529,130,348 566,633,621 606,762, 123 649,699,621 695,642,744 744,801,885 797,402,166 853,684,466 913,906,528 978,344,134 1,047,292,372 1 '121,066,987 1,200,005,825 1,284,470,382 1,374,847,458 1,471,550,929 1,575,023,643 1,685, 739,447 Minimum Decommissioning Fund Estimate 421,872,000 440,856,240 460,694,771 481,426,035 503,090,207 525,729,266 549,387,083 574,109,502 599,944,430 626,941,929 655,154,316 684,636,260 715,444,892 747,639,912 781,283, 708 816,441,475 853,181,341 891,574,502 931,695,354 973,621,645 1,017,434,619 1,063,219,177 Schedule of the Annual Amounts Remaining to be Collected-Unit 2
Year 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 2036 2037 2038 2039 2040 2041 Schedule of the Annual Amounts Remaining to be Collected Beginning Fund Balance 38811001905 41516691973 44511681875 47617321700 51015051993 54616431416 58513101460 62616841196 67019541094 71813221884 76910071490 82312401018 88112681824 94313591645 1100917961824 1108018841606 1 I 15619481532 1123813361934 11325,4221523 1,41816041104 1151813081395 116241991 1987 117391143,430 118611285,474 1199119771461 Alabama Power Company Farley Nuclear Plant Unit 2 Fund Fund Earnings Contributions 2711671063 4021004 2910961898 4021004 311161 1821 4021004 3313711289 4021004 3517351420 4021004 3812651039 4021004 4019711732 4021004 4318671894 4021004 4619661787 4021004 5012821602 4021004 5318301524 4021004 5716261801 4021004 6116881818 4021004 6610351175 4021004 7016851778 4021004 7516611922 4021004 8019861397 4021004 8616831585 4021004 9217791577 4021004 9913021287 4021004 1061281 1588 4021004 11317491439 4021004 12117401040 4021004 13012891983 4021004 139,4381422 0
Ending Fund Balance 38811001905 41516691973 44511681875 47617321700 51015051993 5461643,416 58513101460 62616841196 67019541094 71813221884 7691007,490 82312401018 88112681824 94313591645 1100917961824 1 108018841606 1115619481532 1123813361934 11325,4221523 1141816041104 1151813081395 1162419911987 1 17391 1431430 1186112851474 119911977,461 21131,4151883 Minimum Decommissioning Fund Estimate 42118721000 44018561240 46016941771 481,4261035 50310901207 52517291266 54913871083 57411091502 59919441430 62619411929 65511541316 68416361260 715,4441892 74716391912 78112831708 81614411475 85311811341 89115741502 93116951354 97316211645 1101714341619 1106312191177 1 I 111 10641040 1116110611922 1121313091708 1126719081645 Material Changes to Trust Agreement March 2015 Moved funds for Large Cap Growth to Northern Trust from CastleArk March 2015 Diversified fixed income investments by adding catastrophe bond fund manager Stone Ridge April2015 Added Azalea Capital Fund IV as an Alternative Investment May 2015 Moved funds for Mid Cap Value Equities to MFS from Fisher Investments June 2015 Moved funds for International Equities to lnvesco and EuroPac from Boston Co.
July 2015 Added Portfolio Advisors Private Equity Fund VIII as an Alternative Investment December 2015 Moved funds for Mid Cap Growth to Eagle Investment Management from Goldman Sachs April2016 Moved multiple equity and fixed income investments within the TOLl from active managers to index funds