ML18057A356

Forwards Certification of Financial Assurance for Decommissioning

ML18057A356
Person / Time
Site:	Palisades
Issue date:	07/26/1990
From:	Joos D CONSUMERS ENERGY CO. (FORMERLY CONSUMERS POWER CO.)
To:	NRC OFFICE OF INFORMATION RESOURCES MANAGEMENT (IRM)
References
NUDOCS 9008020244
Download: ML18057A356 (2)

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• power Da.vid w Joos I POWERiNii MICHlliAN"S PROliRESS Vice President:

• Energy. Supply* Se~ic~s General Offices: 1945 West Parnall Road, Jackson, Ml 49201 o (517) 788-1352 I July 26, 1990 I

U S Nuclear Regulatory Commission 10 CFR 50~33(k),

Attn: Document Control Desk 50.75 Washington, DC 20555 I DOCKET 50-255 - LICENSE DPR PALISADES PLANT -

CERTIFICATION OF FINANCIAL ASSURANCE FOR DECOMMISSIONING I In accordance with 10 CFR §§ 50.33(k) and 50.75, Consumers Power is submitting the attached certification of financial assurance for decommissioning of the I Palisades Plant, a 2650 MWt pressurized water reactor facility. Palisades began operating in December 1971 and it is operating under. a provisional operating license.

I Pursuant to orders of the Michigan Public Service Commission (MPSC) issued August 26, 1986 in Case No. U-6150 and December 2, 1986 in Case No. U-8536, Consumers Power established external trust funds to accumulate decommissioning I funds for Palisades, beginning in 1987. Copies of the orders and the trust agreement are enclosed as Exhibits A, B and D, respectively. Exhibit C shows the calculation of the NRC initial certification amount unqer § 50.75.

I Based on an assumed decommissioning cost of $100 million in January 1, 1987,.

dollars, the MPSC, in its December 2, 1986 order, authorized surcharges for electric service rendered on and after January 1, 1987 ~o recover an estimated.

I annual amount of $4,939,000 for the decommissi~ning of ealisades, or a total of

$112,965,000 in the year 2007 in 1990 dollars.

initial certification amount.

This is less than the NRC's I As required by the MPSC's August 26, 1986 order, Consumers Power filed with the MPSC on April 2, 1990 a report on the adequacy of the existing annual de~ommis sioning provision; such a report is to be filed every three years. The 1990 I report was based on a site-specific decommissioning cost study completed *in March 1990 for Palisades by TLG Engineering, Inc.

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• The surcharges are designed to recover the MPSC jurisdicii6nal portion (97.5766%) of the assumed decommissioning cost. The balance is FERC juris-I dictional, ~n~ is not being paid into the external trusts.

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1 OC0790-0033A-LE05 I A CMS' ENERGY COMPANY

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I Based on TLG's site-specific cost estimate and projected inflation and trust fund earning rates, Consumers Power applied to the MPSC, on June 29, 1990, for I authorization to adjust the surcharges beginning January 1, 1991 so as to recover an estimated annual amount of $25,464,400 to decommission Palisades, or a total of $326,812,998 in the year 2007 in 1990 dollars. This amount, if approved, will satisfy the NRC's initial certification requirement under I § 50.75. Consumers Power's application to the MPSC is enclosed as Exhibit E.

When the MPSC has acted on the application, Consumers Power will file a revision to this submittal.

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I CC: Administrator, Region III, USNRC I NRC Resident Inspector - Palisades Plant Attachment I

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I OC0790-0033A-LE05 I