ML17094A518

Submittal of Decommissioning Funding Status Report

ML17094A518
Person / Time
Site:	Millstone
Issue date:	03/30/2017
From:	Stoddard D Dominion Nuclear Connecticut
To:	Document Control Desk, Office of Nuclear Reactor Regulation
References
17-081
Download: ML17094A518 (6)

Text

{{#Wiki_filter:i------- ---- >~ Dominion Nuclear Connecticut, Inc. 5000 Dominion Boulevard, Glen Allen, VA 23060 Dominion Web Address: www.dom.com March 30, 2017 United States Nuclear Regulatory Commission Attention: Document Control Desk Washington, D. C. 20555-0001 DOMINION NUCLEAR CONNECTICUT, INC. MILLSTONE POWER STATION UNIT 1 DECOMMISSIONING FUNDING STATUS REPORT Serial No. NRA/TJS Docket No. License No. 17-081 Rev. 0 50-245' DPR-21 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, 2016 Table II - Decommissioning Funding Status Report for MPS1 Annual Cash Flow Analysis Starting January 1, 2017 through 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 2017 dollars is 1.44% and is based upon the average of CPl-U rates for that period. The mnemonic is "FCPIU.US CPI: Urban Consumer - All Items, (Index 1982-84=100, SA)."

2. The escalation rate of decommissioning costs, shown in Table II is 0% based on assuming a 2% Real Rate of Return.

3. The growth rate on Trust Funds is 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 24, 2016 (Serial No. 16-107, ADAMS Accession No. ML16085A346) for MPS1 there have been no material changes to the Trust agreements established for nuclear decommissioning.

Serial No. 17-081 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, D. G. Stoddard Senior Vice President and Chief Nuclear Officer Dominion Nuclear Connecticut, Inc.

Attachment:

1. Decommissioning Funding Status Report for MPS1 Summary Information as of December 31, 2016 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. H. 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 Decommissioning Funding Status Report for MPS1 Summary Information as of December 31, 2016 Millstone Power Station - Unit 1 Dominion Nuclear Connecticut, Inc. (DNC) Serial No. 17 -081 Docket No.50-245

.~ Serial No. 17-081 Docket No.50-245 Page 1 of 3 Millstone Power Station Unit 1 Decommissioning Funding Status Report as of December 31, 2016 Table I Decommissioning Funding Status Report for MPS1 Summary Information as of December 31, 2016 10 CFR 50.82 (a)(8)(v)-(vii) (In millions) Decommissionina Trust Fund Balances 10 CFR Reference I s0.82(a)(B)(v)(A) Fund Balance TVDe of Trusts Comments 473.827 Unit 1 qualified fund balance As of: 12/31/2016 Unit 1 non-aualified fund balance As of: 12/31/2016 3.064 Less costs incurred but not vet billed to Trust Actual Cost in: 2016 470.763 Adiusted decommissionina fund balance As of: 12/31/2016 Other Financial Assurance Methods Being Relied Upon 10 CFR Reference I 50.82(a)(B)(v)(A) None Prior Years Decommissionina Expenditures 10 CFR Reference I 50.82(a)(8)(v)(A) Total License Term Scent Fuel Mant Site Restoration Comments 5.208 1.248 $ 3.960 $ 2016 Cost in: 2016 81.898 46.553 35.345 2001-2015 Cost in: As-Soent 87.106 $ 47.801 39.305 Total Prior Year in: As-Spent Prior Year Decommissioning Expenditures Variance to Estimated Cost 10 CFR Reference l50.82(a)(8)(v)(B) Total License Term Spent Fuel Mant Site Restoration Comments 5.208 Actual Cost in 2016 5.797 NRCAuth$ in 2016 10.589 $ Variance: Underrun to NRC Authorized Expenditures Remainina Decommissionina Estimated Cost 10 CFR Reference l50.82(a)(B)(v)(B) Total License Scent Fuel Mant Site Restoration Comments 390.162 $ 291.901 76.677 21.584 Estimate in : 2017 Decommissioning Criteria Upon Which the Estimate is Based 10 CFR Reference IS0.82(a)(B)(v)(B) SAFSTOR Anv Modification To Method of Providina Financial Assurance 10 CFR Reference l50.82(a)(B)(v)(C) None Anv Material Chanaes To Trust Aareement Since Previous Report 10 CFR Reference IS0.82(a)(B)(v)(D) None Need For Additional Financial Assurance 10 CFR Reference IS0.82(a)(8)(vl) None See Annual Cash Flow Analvsis in Table II Inputs to Remainina Cost and Fundina Analvsis I 2017 Start vear of Remainina Cost and Fundina analvsis 1.44% Escalate studv dollars from Studv Year to Start Year of Analvsis usina an averaae of CPI rates 0.00% Escalation rate 2017 & Bevond I so.s2(a)(B)(vll)(A) Dollars I I Dollars Dollars Dollars I Dollars Dollars IS0.82(a)(B)(vll)(B) Dollars I I I IS0.82(a)(B)(vll)(C) I 2.00% Fund arowth rate 2017 & Bevond {Reflects NRC allowed 2% Real Rate of Return) Projected annual exoenditures - see Annual Cash Flow Analvsis 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.

3) 2016 NRC Authorized expenditures of $5.797 million are based on $5.7 million (rounded) in 2015 dollars and escalated by 2.55% annually as described in DNC's submittal dated December 4, 2015 (ML15345A243).

Year 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 2042 2043 2044 2045 2046 2047 2048 2049 2050 2051 2052 2053 2054 2055 2056 2057 2058 2059 2060 2061 2062 2063 2064 2065 2066 2067 2068 2069 2070 2071 Remaining $In Millstone Power Station Unit 1 Serial No. 17-081 Docket No.50-245 Page 2 of 3 Decommissioning Funding Status Report as of December 31, 2016 Table II Decommissioning Funding Status Report for MPS1 Annual Cash Flow Analysis Starting January 1, 2017 through End of Decommissioning 10 CFR 50.82 (a)(8)(v)-{vii) On 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 Tennlnatlon Spent Fuel Mgmt Site Restoration SAFSTOR of Year Trust Funds Expenditures Expenditures Expenditures Expenditures Year Balance (Reflects 2% RRoRl {Reflects 0% Escl (Reflects 0% Escl (Reflects 0% Escl (Reflects 0% Escl Balance 470.763 9.360 0.942 4.539 5.481 474.642 474.642 9.448 0.941 3.502 4.443 479.647 479.647 9.549 0.941 3.503 4.444 $ 484.752 484.752 9.651 0.941 3.502 4.443 489.959 489.959 9.757 1.590 2.656 4.247 $ 495.470 495.470 9.869 1.590 2.425 4.016 $ 501.323 501.323 9.986 1.590 2.425 4.016 $ 507.294 507.294 10.106 1.590 2.425 4.016 513.384 513.384 10.170 6.980 2.810 9.790 513.764 513.764 10.233 1.590 2.656 4.247 $ 519.750 519.750 10.352 1.590 2.688 4.278 $ 525.824 525.824 10.457 1.590 4.402 5.992 $ 530.288 530.288 10.549 1.590 4.121 5.711 535.126 535.126 10.662 1.590 2.425 4.016 $ 541.772 541.772 10.793 1.590 2.656 4.247 $ 548.319 548.319 10.926 1.590 2.425 4.016 $ 555.229 555.229 11.064 1.590 2.425 4.016 562.278 562.278 11.205 1.590 2.425 4.016 569.468 569.468 11.343 2.232 2.425 4.657 $ 576.154 576.154 11.481 1.590 2.656 4.247 $ 583.388 583.388 11.628 1.590 2.425 4.016 591.000 591.000 11.780 1.590 2.425 4.016 $ 598.764 598.764 11.935 1.590 2.425 4.016 606.683 606.683 12.094 1.590 2.425 4.016 $ 614.761 614.761 12.255 1.590 2.425 4.016 623.001 623.001 12.420 1.590 2.425 4.016 631.405 631.405 12.576 2.806 2.425 5.231 638.750 638.750 12.660 10.903 0.604 11.507 $ 639.902 639.902 12.758 3.988 3.988 $ 648.672 648.672 12.959 1.446 1.446 $ 660.186 660.186 13.189 1.446 1.446 $ 671.929 671.929 13.412 2.612 2.612 $ 682.729 682.729 13.070 58.483 58.483 637.315 637.315 11.931 81.569 81.569 $ 567.677 567.677 10.594 75.944 75.944 $ 502.328 502.328 10.034 1.230 1.230 511.132 511.132 10.010 0.106 21.114 21.220 499.922 499.922 9.994 0.040 0.374 0.414 509.503 509.503 10.189 0.096 0.096 519.596 519.596 10.392 529.988 529.988 10.600 540.587 540.587 10.812 551.399 551.399 11.028 562.427 562.427 11.249 573.676 573.676 11.474 585.149 585.149 11.703 596.852 596.852 11.937 608.789 608.789 12.176 620.965 620.965 12.419 633.384 633.384 12.668 646.052 646.052 12.921 658.973 658.973 13.179 672.152 672.152 13.443 685.595 685.595 13.712 699.307 699.307 13.921 6.546 6.546 706.682 2017 Dollars 291.901 76.677 21.584 $ 390.162 Est Fund Balance (end of Decommissioning) (in Future $escalated at 0.0% & 2.0% Real Rate of Return Fund Growth Rate) 706.682 Est. Fund Balance (end of Decommissioning) discounted to 2017 Dollars Discount Rate = 2.00% 242.558

Serial No. 17-081 Docket No.50-245

• Page 3 of 3 Table II Definitions:

Column 1: Column 2: Column 3: Column 4: Column 5: Column 6: Column 7: 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. Earnings on Trust Funds: Reflects earnings on funds remaining in the trust. A 2.0% RRoR Fund growth rate is used for 2017 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 less 50% of the projected annual expenditure for each year. Remaining License Termination Expenditures: Reflects the annual License Termination Plan cost portion at a 0.0% escalation rate from the Site Specific Estimate. 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). Remaining Site Restoration Expenditures: Reflects the annual Site Restoration Plan cost portion at a 0.0% escalation rate from the Site Specific Estimate. Remaining SAFSTOR Expenditures: Reflects the annual SAFSTOR Decommissioning Plan cost at a 0.0% escalation rate from the Site Specific Cost Estimate. 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, 2016, 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).

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.}}