ML17328A311

Provides Certification of Funding Plan for Decommissioning of Plant,Per 10CFR50.33 & 50.75

ML17328A311
Person / Time
Site:	Cook
Issue date:	07/03/1990
From:	Alexich M INDIANA MICHIGAN POWER CO. (FORMERLY INDIANA & MICHIG
To:	NRC OFFICE OF INFORMATION RESOURCES MANAGEMENT (IRM)
References
AEP:NRC:1119, NUDOCS 9007060209
Download: ML17328A311 (6)

Text

ACCELERATED DIS IBUTION DEMONS ION SYSTEM

+~ ~s REGULATORY INFORMATION .DISTRIBUTION SYSTEM (RIDS)

NBR:9007060209 DOC.DATE: 90/07/03 NOTARIZED: NO DOCKET FACIL:50-315 Donald C. Cook Nuclear Power Plant, Unit 1, Indiana & 05000315 50-316 Donald C. Cook Nuclear Power Plant, Unit 2, Indiana & 05000316 AUTH. NAME AUTHOR AFFILIATION ALEXICH,M.P. Indiana Michigan Power Co. (formerly Indiana & Michigan Ele RECIP.NAME RECIPIENT AFFILIATION NOTES'CCESSION Document Control Branch (Document Control Desk)

SUBJECT:

Provides certification of funding plan for decommissioning, per 10CFR50.33 & 50.75.

DISTR1BUTION CODE: A001D COPIES RECEIVED:LTR ENCL SIZE:

TITLE: OR Submittal: General Distribution RECIPIENT COPIES RECIPIENT COPIES ID CODE/NAME LTTR ENCL ID CODE/NAME LTTR ENCL PD3-1 LA 1 1 PD3-1 PD 1 1 GIITTER,J. 5 5 INTERNAL: NRR/DET/ECMB 9H 1 1 NRR/DOEA/OTSB11 1 1 NRR/DST 8E2 1 1 NRR/DST/SELB 8D 1 1 NRR/DST/SICB 7E 1 1 'RR/DST/SRXB 8E 1 1 NUDOCS-ABSTRACT 1 1 OC/LFMB 1 0 OGC/HDS1 1 0 0 1 1 RES/DSIR/EIB 1 1 EXTERNAL: LPDR NSIC 1

1 l.

1 NRC PDR 1 1 NOTE TO ALL "RIDS" RECIPIENTS:

PLEASE HELP US TO REDUCE iVASTE! CONTACT THE DOCUMENT CONTROL DESK, ROOM P 1-37 (EXT. 20079) TO ELIMINATEYOUR NAME FROM DISTRIBUTION LISIS FOR DOCUMENTS YOU DON'T NEED!

TOTAL NUMBER OF COPIES REQUIRED: LTTR 21 ENCL 19

Indiana Michigan Power Company P.O. Box 16631 Columbus, OH 43216 AEP:NRC:1119 10 CFR 50.33 10 CFR 50.75 Donald C. Cook Nuclear Plant Units 1 and 2 Docket Nos. 50-315 and 50-316 License Nos. DPR-58 and DPR-74 COMPLIANCE WITH NEW DECOMMISSIONING RULE U.S. Nuclear Regulatory Commission Attn: Document Control Desk Washington, D.C. 20555 Attn: T. E. Murley July 3, l990

Dear Dr. Murley:

This letter is in response to the new decommissioning rule as put forth in 10 CFR 50.33 and 10 CFR 50.75. Indiana Michigan Power Company is setting aside funds for the decommissioning of the Donald C. Cook Nuclear Plant. This letter is a certification of the funding plan for decommissioning as outlined in the Attachment.

This document has been prepared following Corporate procedures that incorporate a reasonable set of controls to ensure its accuracy and completeness prior to signature by the undersigned.

Sincerely, M. P. A exich Vice President edg Attachment cc: D. H. Williams, Jr.

A; A. Blind - Bridgman J. R. Padgett NFEM Section Chief G. Charnoff NRC Resident Inspector - Bridgman A. B. Davis - NRC Region III 9007060209'00703 PDR ADOCK 05000315 P

PDC

Attachment to AEP:NRC:1119 REPORT TO NUCLEAR REGULATORY COMMISSION DECOMMISSIONING FUNDING FOR DONALD C. COOK UNITS 1 AND 2 Three site-specific studies of decommissioning costs for the Donald C. Cook Nuclear Plant have been prepared over the past several years. We will continue to update these studies in the future as necessary or as requested. The first study was prepared in 1982 and the second in 1986.

The most recent study was prepared by Nuclear Energy Services, (NES) Inc.

in a report dated December 1989 'his NES study reports the following results in 1989 dollars for both Units 1 and 2.

Immediate Thirty-Year Delayed Decommissioning Post-Shutdown Dormancy Dismantling Total Alternative Period Cost Period Cost Cost Pro ram Cost DECON $ 340,049,600 N/A N/A $ 340,049,600 ENTOMB with $ 53,987,800 $ 22,578,000 $ 282,290,600 $ 358,856,400 Thirty-Year Delayed Dismantling SAFSTOR with $ 52,816,100 $ 33,768,000 $ 282,290,600 $ 368,874,700 Thirty-Year Delayed Dismantling This study is based on the license life extension requested for both Cook Nuclear Plant units. The Company also has a 1989 study based on the original license life of 2009 which shows moderately lower dollar amounts because there would be a simultaneous shutdown of both units in this instance but not in the case of the license life extension.

Indiana Michigan Power Company has not determined what method will be used to decommission the plant and will not select a method until a later date.

However, for purposes of nuclear decommissioning funding, the Company is assuming the DECON method since this method appears the most probable and appropriate at this time. It conservatively also requires the greatest immediate dollar expenditures.

The DECON site-specific cost estimate of $ 340,049,600 for both units is higher compared to the following NRC required minimum cost estimate of

$ 261,700,000.

Page 2 Attachment t AEP:NRC:1119 The NRC formula minimum cost estimate for Unit 1, which is rated at '3250 MWt power, is (75 + 0.0088 x 3250) million dollars or $ 103,600,000. The NRC formula minimum cost estimate for Unit 2, which is rated at 3411 MWt power, is (75 + 0.0088 x 3411) or $ 105,000,000. These minimum cost estimates are adjusted per the regulations. We have calculated the adjusted minimum cost estimate in 1989 dollars to be $ 130,000,000 for Unit 1 and $ 131,700,000 for Unit 2. The adjusted minimum cost estimate for both units in 1989 dollars is $ 261,700,000.

The Company will continue to request recovery of funds for nuclear decommissioning from regulator commissions having jurisdiction over utility rates. The amount requested will be determined by a site-specific study or the minimum generic estimate pursuant to the NRC regulations, whichever amount is higher. At the present time, this amount is $ 340,049,600 in 1989 dollars. Requests for changes in decommissioning recoveries would usually be included as part of a general rate filing.

The amount of revenues to be requested for nuclear decommissioning is dependent on various factors in addition to the current dollar estimate of the cost to decommission the nuclear plant. These other factors include:

1. The estimated remaining service life of the plant.

2. The rate at which nuclear decommissioning costs are expected to increase in the future.

3. The funds which have been previously collected from customers for nuclear decommissioning purposes and accumulated investment earnings on such funds.

4. The estimated future investment earnings on nuclear decommissioning funds.

5. The income tax status of nuclear decommissioning collections and earnings on nuclear decommissioning funds.

The amount permitted in rates for nuclear decommissioning expenses is dependent on the decision of the commission in each jurisdiction. This decision reflects the commission's conclusions based on evidence presented by the Company, and usually other parties, as to the assumptions to be adopted and the amounts needed to provide for decommissioning.

Page 3 Attachment AEP:NRC:1119 Indiana Michigan Power Company's utility rates are subject to approval by three commissions with respect to portions of its business:

The Indiana Utility Regulatory Commission The Federal Energy Regulatory Commission The Michigan Public Service Commission In each jurisdiction the Company is presently collecting funds from customers for decommissioning the Cook Nuclear Plant units. The amounts reflected in rates as decommissioning expenses are deposited in one or more external trust funds established for the purpose of decommissioning the Donald C. Cook Nuclear Plant units'ertain of these funds are qualified pursuant to provisions of the Internal Revenue code. In each case the trustee is a banking institution having trust powers. The book value of all nuclear decommissioning trust funds was $ 89,469,129.08 at December 31, 1989. A schedule of the trust funds is, shown on Exhibit A.

Page 4 Attachment to AEP:NRC:1119 Exhibit A INDIANA MICHIGAN POWER COMPANY DONALD C. COOK NUCLEAR PLANT DECOMMISSIONING TRUSTS OTHER SPECIAL FUNDS - ACCOUNT 128 DECEMBER 31, 1989 Fort Wayne National Bank $ 26,942,281.24 Fort Wayne, Indiana Lincoln National Bank 25,887,636.15 Fort Wayne, Indiana First Source Bank 33,517,429 '7 South Bend, Indiana National Bank of Detroit 3,121,782.52 Detroit, Michigan TOTAL 89 469 129.08