ML18106B141
| ML18106B141 | |
| Person / Time | |
|---|---|
| Site: | Peach Bottom, Salem, Hope Creek  |
| Issue date: | 03/30/1999 |
| From: | Walters L AFFILIATION NOT ASSIGNED |
| To: | Milano P NRC |
| References | |
| NUDOCS 9904050055 | |
| Download: ML18106B141 (28) | |
Text
,,
800 King Street.
P.O. Box 231 Wilmington, DE 19899 March 30, '1999 U.S. Nuclear Regulatory Commission Attn: P. Milano One White Flint North 11555 Rockville Pike Mail Stop 014E-21 Rockville, MD 20852 e*
conectiv Re:
1999 NRC Nuclear Power Reactor Licensee Financial Qualifications and Decommissioning Funding Assurance Status Report
Dear Mr. Milano:
Enclosed please find decommissioning information on behalf of Conectiv's nuclear facility licensee subsidiaries, Atlantic City Electric Co. and Delmarva Power & Light Co., in connection with NRC reporting requirements requiring us to provide information regarding the status of nuclear decommissioning by March 31, 1999.
As stipulated by the NRC reporting requirements promulgated in September, 1998, the enclosed information includes responses as to (1) the amount of decommissioning funds estimated to be required pursuant to 10 CFR 50.75 (b) and (c); (2) the amount accumulated to the end of the calendar year preceding the date of this report; (3) a schedule of the annual amounts remaining to be collected; (4) the 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) any contract the licensee is relying on pursuant to 10 CFR 50.75 (e)(l)(v) for collections of decommissioning moneys from customers; (6) any modifications to the method of providing financial assurance since the last submitted report; and (7) any material changes to the decommissioning trust agreements.
The nuclear facility ownership interests and portion of decommissioning costs of Atlantic City Electric Co.
and Delmarva Power & Light Co. consist of the following:
Nuclear Facility Hope Creek Nuclear Generating Station Salem Nuclear Generating Station Unit One Salem Nuclear Generating Station Unit Two Peach Bottom Atomic Power Station Unit Two Peach Bottom Atomic Power Station Unit Three Atlantic City Electric Co.
5.. 00%
7.41%
7.41%
7.51%
7.51%
Delmarva Power
& Light Co.
7.41%
7.41%
7.51%
7.51%
For any questions regarding this disclosure, please contact Stacy A. Le Piere at (302) 429-3814.
cc:
Distribution s:/capmkts/ndt/compliance/nrc/99nrc.doc sal 3-29-99 Sincerely,
<<~~~--
Louis M. Walters Treasurer
I I
DISTRIBUTION LIST U.S. Nuclear Regulatory Commission Attn: Docket Control Desk Mail Stop OPl-17 Washington, DC 20555-0001 U.S. Nuclear Regulatory Commission Attn: Robert Wood Mail Stop 011-Fl Washington, DC 20555-0001 U.S. Nuclear Regulatory Commission Attn: P. Milano (Salem)
One White Flint North 11555 Rockville Pike Mail Stop 14E-21 Rockville, MD 20852 U.S. Nuclear Regulatory Commission Attn: R. Ennis (Hope Creek)
One White Flint North 11555 Rockville Pike Mail Stop 14E-21 Rockville, MD 20852 U.S. Nuclear Regulatory Commission Attn: Mohan Thadeni (Peach Bottom)
One White Flint North 11555 Rockville Pike Mail Stop 14E-21 Rockville, MD 20852 Public Service Electric & Gas Co., T8C Attn: Michael Moscufo 80 Park Plaza Newark, NJ 07102-4194 PECO Energy Company Attn: George Shicora 2301 Market Street P.O. Box 8699 Philadelphia, PA 19101-6899 Within Conectiv Garry A. Musto Stephanie M. Scola Stacy A. Le Piere Carter H. Kresge Harry R. Abendroth Mack J. Wathen Gregory H. Barksdale
Conectiv 1999 NRC Decommissioning Funding Status Report Hope Creek Nuclear Generating Station Licensee: Atlantic City Electric Co.
- Atlantic City Electric Co. operates solely in the state of New Jersey*
- 1.
The minimmn decommissioning fund estimate, pursuant to 10 CFR 50.75 (b) and (c): 1 Atlantic City Electric Co.
- 2.
The market value amounts of the nuclear decommissioning trust funds accmnulated at the end of the calendar year preceding the date of the report for the company's nuclear decommissioning liability:2 Atlantic City Electric Co.
- 3.
A schedule of the annual amounts remaining to be collected according to the company's rates:
Amount remaining No. of years to collect
- 4.
The assumptions used regarding escalation in decommissioning cost and rates of earnings on decommissioning funds, and rates of other factors used in funding projections:
New Jersey:
Earnings rate Escalation factor Other
- 5.
Any contracts upon which the licensee is relying pursuant to 10 CFR 50.75 (e) (1) (v):
- 6.
Any modifications to a licensee's current method providing financial assurance occurring since the last submitted report:
- 7.
Any material changes to trust agreements:
1 For details see Appendix A, Page 5 2 For breakdown of trust fund assets by jurisdiction see Appendix D, Page 2 18,010,000 9,681,000
$ 825,000/year 27 years 7.75%
11.9313 NIA None None None 3 The New Jersey Board of Public Utilities decommissioning escalation factor converts 1987 dollars into 2026 dollars
Conectiv 1999 NRC Decommissioning Fnnding Status Report Salem Nuclear Generating Station, Unit One Licensees: Atlantic City Electric Co. and Delmarva Power & Light Co.
- Atlantic City Electric Co. operates solely in the state of New Jersey*
- 1.
The minimum decommissioning fund estimate, pursuant to 10 CFR 50.75 (b) and (c): 1 Atlantic City Electric Co.
Delmarva Power & Light Co.
- 2.
The market value amounts of the nuclear decommissioning trust funds accumulated at the end of the calendar year preceding the date of the report for the company's nuclear decommissioning liability:2 Atlantic City Electric Delmarva Power & Light
- 3.
A schedule of the annual amounts remaining to be collected according to the company's rates: 3 Amount remaining:
Atlantic City Electric Delmarva Power & Light No. of years to collect:
- 4.
The assumptions used regarding escalation in decommissioning cost and rates of earnings on decommissioning funds:
Earnings rate:
Escalation rate:
New Jersey Delaware Maryland Virginia FERC New Jersey (factor)
Delaware Maryland Virginia FERC
- 5.
Any contracts upon which the licensee is relying pursuant to 10 CFR 50.75 (e) (1) (v):
- 6.
Any modifications to a licensee's current method providing financial assurance occurring since the last submitted report:
- 7.
Any material changes to trust agreements:
1 For details see Appendix A, Page 6 2 For breakdown of trust fund assets by jurisdiction see Appendix D, Page 2 21,544,000 21,544,000 21,997,000 19,038,000
$ 689,000/year
$ 873,000/year 17 years 7.75%
2.8887%
7.00%
6.00%
6.00%
4.6374 4.94%
5.00%
5.00%
5.00%
None None None 3 For breakdown of annual amounts to be collected according to state rate orders, see Appendix D, Page 3 4 The New Jersey Board of Public Utilities decommissioning escalation factor converts 1987 dollars into 2008 dollars
Conectiv 1999 NRC Decommissioning Funding Status Report Salem Nuclear Generating Station, Unit Two Licensees: Atlantic City Electric Co. and Delmarva Power & Light Co.
- Atlantic City Electric Co. operates solely in the state of New Jersey*
- 1.
The minimum decommissioning fund estimate, pursuant to 10 CFR 50.75 (b) and (c): 1 Atlantic City Electric Co.
Delmarva Power & Light Co.
- 2.
The market value amounts of the nuclear decommissioning trust funds accumulated at the end of the calendar year preceding the date of the report for the company's nuclear decommissioning liability:2 Atlantic City Electric Co.
Delmarva Power & Light Co.
- 3.
A schedule of the annual amounts remaining to be collected according to the company's rates:3 Amount remaining:
Atlantic City Electric Co.
Delmarva Power & Light Co.
No. of years to collect:
- 4.
The assumptions used regarding escalation in decommissioning cost and rates of earnings on decommissioning funds:
Earnings rate:
Escalation rate:
New Jersey Delaware Maryland Virginia FERC New Jersey (factor)
Delaware Maryland Virginia FERC
- 5.
Any contracts upon which the licensee is relying pursuant to 10 CFR 50.75 (e) (1) (v):
- 6.
Any modifications to a licensee's current method providing financial assurance occurring since the last submitted report:
- 7.
Any material changes to trust agreements:
1 For details see Appendix A, Page 7 2 For breakdown of trust fund assets by jurisdiction see Appendix D, Page 2 21,544,000 21,544,000 15,613,000 14,813,000
$ 1,114,000/year 765,000/year 21 years 7.75%
3.5032%
7.00%
6.00%
6.00%
4.661 4 4.94%
5.00%
5.00%
5.00%
None None None 3 For breakdown of annual amounts to be collected according to state rate orders, see Appendix D, Page 3 4 The New Jersey Board of Public Utilities decommissioning escalation factor converts 1987 dollars into 2008 dollars
Conectiv 1999 NRC Decommissioning Funding Status Report Peach Bottom Atomic Power Station, Unit Two Licensees: Atlantic City Electric Company and Delmarva Power & Light Co.
- Atlantic City Electric Co. operates solely in the state of New Jersey *
- 1.
The minimum decommissioning fund estimate, pursuant to 10 CFR 50.75 (b) and (c): 1 Atlantic City Electric Co.
Delmarva Power & Light Co.
- 2.
The market value amounts of the nuclear decommissioning trust funds accumulated at the end of the calendar year preceding the date of the report for the company's nuclear decommissioning liability: 2 Atlantic City Electric Co.
Delmarva Power & Light Co.
- 3.
A schedule of the annual amounts remaining to be collected according to the company's rates:3 Amount remaining:
Atlantic City Electric Co.
Delmarva Power & Light Co.
No. of years to collect:
- 4.
The assumptions used regarding escalation in decommissioning cost and rates of earnings on decommissioning funds:
Earnings rate:
Escalation rate:
New Jersey Delaware Maryland Virginia FERC New Jersey (factor)
Delaware Maryland Virginia FERC
- 5.
Any contracts upon which the licensee is relying pursuant to 10 CFR 50.75 (e) (1) (v):
- 6.
Any modifications to a licensee's current method providing financial assurance occurring since the last submitted report:
- 7.
Any material changes to trust agreements:
1 For details see Appendix A, Page 8 2 For breakdown of trust fund assets by jurisdiction see Appendix D, Page 2 27,351,000 27,351,000 24,581,000 17,812,000
$ 1,826,000/year
$ 1,301,000/year 14 years 7.75%
2.6231%
7.00%
6.00%
6.00%
5.0614 4.94%
5.00%
5.00%
5.00%
None None None 3 For breakdown of annual amounts to be collected according to state rate orders, see Appendix D, Page 3 4 The New Jersey Board of Public Utilities decommissioning escalation factor converts 1987 dollars into 2008 dollars
Conectiv 1999 NRC Decommissioning Funding Status Report Peach Bottom Atomic Power Station, Unit Three Licensees: Atlantic City Electric Company and Delmarva Power & Light Co.
- Atlantic City Electric Co. operates solely in the state of New Jersey*
- 1.
The minimum decommissioning fund estimate, pursuant to 10 CFR 50.75 (b) and (c): 1 Atlantic City Electric Co.
Delmarva Power & Light Co.
- 2.
The market value amounts of the nuclear decommissioning trust funds accumulated at the end of the calendar year preceding the date of the report for the company's nuclear decommissioning liability:2 Atlantic City Electric Co.
Delmarva Power & Light Co.
- 3.
A schedule of the annual amounts remaining to be collected according to the company's rates:3 Amount remaining:
Atlantic City Electric Co.
Delmarva Power & Light Co.
No. of years to collect:
- 4.
The assumptions used regarding escalation in decommissioning cost and rates of earnings on decommissioning funds:
Earnings rate:
Escalation rate:
New Jersey Delaware Maryland Virginia FERC New Jersey (factor)
Delaware Maryland Virginia FERC
- 5.
Any contracts upon which the licensee is relying pursuant to 10 CFR 50.75 (e) (1) (v):
- 6.
Any modifications to a licensee's current method providing financial assurance occurring since the last submitted report:
- 7.
Any material changes to trust agreements:
1 For details see Appendix A, Page 9 2 For breakdown of trust fund assets by jurisdiction see Appendix D, Page 2 27,351,000 27,351,000 26,309,000 17,816,000
$ 1,970,000/year
$ 1,301,000/year 15 years 7.75%
2.6231 %
7.00%
6.00%
6.00%
4.6964 4.94%
5.00%
5.00%
5.00%
None None None 3 For breakdown of annual amounts to be collected according to state rate orders, see Appendix D, Page 3 4 The New Jersey Board of Public Utilities decommissioning escalation factor converts 1987 dollars into 2008 dollars
APPENDIX A
DERIVATION OF 1999 NRC ESCALATION FACTORS FOR BOILING WATER REACTORS HOPE CREEK NUCLEAR GENERATING STATION ESCALATED TO DECEMBER 1998 COSTS Annual adjustment to NRC decommissioning report:
LABOR ENERGY: (ENERGY=.23P +.77F)
BURIAL P = ELECTRIC POWER F =FUEL OIL 130.5 (a)
DEC. 1998 216.92 (a) January 1986 (1981 Base) Labor Escalation For Northeast Region, (b)
ESCALATION FACTOR 1.66 0.63 NRC Minimum Financial Assurance Update - Reid & Priest Letter Dated February 19, 1999, Page 3. (See Appendix B).
(b) Fourth Quarter 1998 (1981 Base) Labor Escalation For Northeast Region, NRC Minimum Financial Assurance Update - Reid & Priest Letter Dated February 19, 1999, Page 3. (See Appendix B).
(c) Calculated 1998 Escalation Factor= (b)/(a)
(d) BWR 1998 Escalation Factor, NRC Minimum Financial Assurance Update - Reid & Priest Letter Dated February 19, 1999, Page 2. (See Appendix B).
(c)
(d) 2
DERIVATION OF1999 NRC ESCALATION FACTORS FOR PRESSURIZED WATER REACTORS SALEM NUCLEAR GENERATING STATION, UNITS ONE AND TWO ESCALATED TO DECEMBER 1998 COSTS Annual adjustment to NRC decommissioning report:
LABOR ENERGY : (ENERGY= 0.58P + 0.42F)
P = ELECTRIC POWER F =FUEL OIL BURIAL 130.5 (a)
DEC. 1998 216.92 (a) January 1986 (1981 Base) Labor Escalation For Northeast Region, (b)
ESCALATION FACTOR 1.66 0.85 NRC Minimum Financial Assurance Update - Reid & Priest Letter Dated February 19, 1999, Page 3. (See Appendix B).
(b) Fourth Quarter 1998 (1981 Base) Labor Escalation For Northeast Region, NRC Minimum Financial Assurance Update - Reid & Priest Letter Dated February 19, 1999, Page 3. (See Appendix B).
(c) Calculated 1998 Escalation Factor= (b)/(a)
(d) PWR 1998 Escalation Factor, NRC Minimum Financial Assurance Update - Reid & Priest Letter Dated February 19, 1999, Page 4. (See Appendix B).
(c)
(d) 3
DERl,VATION OF 1999 NRC ESCALATION FACTORS FOR _BOILING WATER REACTORS PEACH BOTTOM ATOMIC POWER STATION, UNITS TWO AND THREE ESCALATED TO DECEMBER 1998 COSTS Annual adjustment to NRC decommissioning report:
LABOR ENERGY : (ENERGY= 0.23P + 0.77F)
P = ELECTRIC POWER F =FUEL OIL BURIAL 130.5 (a)
DEC. 1998 216.92 (a) January 1986 (1981 Base) Labor Escalation For Northeast Region, (b)
ESCALATION FACTOR 1.66 0.63 NRC Minimum Financial Assurance Update - Reid & Priest Letter Dated February 19, 1999, Page 3. (See Appendix B).
(b) Fourth Quarter 1998 (1981 Base) Labor Escalation For Northeast Region, NRC Minimum Financial Assurance Update - Reid & Priest Letter Dated February 19, 1999, Page 3. (See Appendix B).
(c) Calculated 1998 Escalation Factor= (b)/(a)
(d) BWR 1998 Escalation Factor, NRC Minimum Financial Assurance Update - Reid & Priest Letter Dated February 19, 1999, Page 4. (See Appendix B).
INFORMATION SOURCES: VALUES SUPPLIED BY REID & PRIEST AND ARE BASED ON INFORMATION OBTAINED FROM GOVERNMENT PUBLICATIONS AND SOURCES (c)
(d) 4
ES~ALATION FACTOR, DECEMBER 1998 ESCALATED COST AND ACE'S SHARE OF ESCALATED COSTS FOR HOPE CREEK NUCLEAR GENERATING STATION Escalation Factor - Hope Creek Nuclear Generating Station (BWR):
WEIGHTED ESCALATION ESCALATION FACTOR PERCENTAGE FACTOR LABOR ENERGY BURIAL 1.66 0.63 6.97 TOTAL ESCALATION FACTOR-DECEMBER 1998 THERMAL RATING (MWt)
(a)
(b)
(c) 65%
13%
22%
TIMES PLUS MINIMUM DECOMMISSIONING COST PER NRC -1986 DOLLARS 1998 ESCALATION FACTOR TOTAL ESCALATED COST TO DECEMBER 1998 ACE'S SHARE OF TOTAL EXCALATED COST (5.00%)
(a) See Page 2 for calculation (d) 1.08 (d) 0.08 (d) 1.53 2.70 (In Thousands)
$3,293.00 9
29637
$ 104,000
$133,637 2.70
$ 360,192
$ 18,010 (b) BWR 1998 Escalation Factor, NRC Minimum Financial Assurance Update - Reid & Priest Letter Dated February 19, 1999, Page 2. (See Appendix B).
(c) 1998 Waste Burial Factor For BWR Waste Vendor Option via South Carolina, NRC Minimum Financial Assurance Update - Reid & Priest Letter Dated February 19, 1999, Page 4. (See Appendix B).
(e)
(f)
(g)
(d) August 1990 NRC Regulatory Guide 1.159 - as referenced in the NRC Minimum Financial Assurance Update - Reid & Priest Letter Dated February 19, 1999, Page 1. (See Appendix B).
(e) Thermal Rating of Hope Creek Unit obtained from Patty Lester in Supply Engineering &
Support of Conectiv at (302) 283-5719 (See Appendix C).
(f) August 1990 NRC Regulatory Guide 1.159 (g) August 1990 NRC Regulatory Guide 1.159 5
ESCALATION FACTOR, DECEMBER 1998 ESCALATED COST AND ACE AND DPL'S SHARE OF ESCALATED COSTS FOR SALEM NUCLEAR GENERATING STATION - UNIT ONE Escalation Factor - Salem Nuclear Generating Station - Unit One (PWR):
ESCALATION FACTOR PERCENTAGE WEIGHTED ESCALATION FACTOR LABOR ENERGY BURIAL 1.66 (a) 0.85 (b) 7.173 (c)
TOTAL ESCALATION FACTOR - DECEMBER 1998 65%
13%
22%
(d)
(d)
(d)
ESCALATED COST-SALEM NUCLEAR GENERATING STATION - UNIT ONE 1.08 0.11 1.58 2.77 (In Thousands)
MINIMUM DECOMMISSIONING COST PER NRG -1986 DOLLARS
$ 105,000 (e) 1998 ESCALATION FACTOR 2.77 TOTAL ESCALATED COST TO DECEMBER 1998
$ 290,745 ACE AND DPL'S SHARE OF TOTAL ESCALATED COST (14.82%)
$ 43,088 (a) See Page 2 for calculation (b) PWR 1998 Escalation Factor, NRG Minimum Financial Assurance Update - Reid & Priest Letter Dated February 19, 1999, Page 2. (See Appendix B).
(c) 1998 Waste Burial Factor For PWR Waste Vendor Option via South Carolina, NRG Minimum Financial Assurance Update - Reid & Priest Letter Dated February 19, 1999, Page 4. (See Appendix B).
(d) August 1990 NRG Regulatory Guide 1.159 - as referenced in the NRG Minimum Financial Assurance Update - Reid & Priest Letter Dated February 19, 1999, Page 1. (See Appendix B).
(e) 1986 base amount to Decommision PWR unit, assuming a thermal rating above 3400 MWt, August 1990 NRG Regulatory Guide 1.159 - as referenced in the NRG Minimum Financial Assurance Update - Reid & Priest Letter Dated February 19, 1999, Page 1. (See Appendix B).
6
ESCAL.ATION FACTOR, DECEMBER 1998 ESCALATED COST AND ACE AND DPL'S SHARE OF ESCALATED COSTS FOR SALEM NUCLEAR GENERATING STATION - UNIT TWO Escalation Factor - Salem Nuclear Generating Station - Unit Two (PWR):
WEIGHTED ESCALATION ESCALATION FACTOR PERCENTAGE FACTOR LABOR ENERGY BURIAL 1.66 (a) 0.85 (b) 7.173 (c)
TOTAL ESCALATION FACTOR - DECEMBER 1998 65%
13%
22%
(d)
(d)
(d)
ESCALATED COST - SALEM NUCLEAR GENERATING STATION - UNIT ONE 1.08 0.11 1.58 2.77 (In Thousands)
MINIMUM DECOMMISSIONING COST PER NRG -1986 DOLLARS
$ 105,000 (e) 1998 ESCALATION FACTOR 2.77 TOTAL ESCALATED COST TO DECEMBER 1998
$ 290,745 ACE AND DPL'S SHARE OF TOTAL ESCALATED COST (14.82%)
$ 43,088 (a) See Page 2 for calculation (b) PWR 1998 Escalation Factor, NRG Minimum Financial Assurance Update - Reid & Priest Letter Dated February 19, 1999, Page 2. (See Appendix B).
(c) 1998 Waste Burial Factor For PWR Waste Vendor Option via South Carolina, NRG Minimum Financial Assurance Update - Reid & Priest Letter Dated February 19, 1999, Page 4. (See Appendix B).
(d) August 1990 NRG Regulatory Guide 1.159 - as referenced in the NRG Minimum Financial Assurance Update - Reid & Priest Letter Dated February 19, 1999, Page 1. (See Appendix B).
(e) 1986 base amount to Decommision PWR unit, assuming a thermal rating above 3400 MWt, August 1990 NRG Regulatory Guide 1.159 - as referenced in the NRG Minimum Financial Assurance Update - Reid & Priest Letter Dated February 19, 1999, Page 1. (See Appendix B).
7 J
ESCAL;ATION FACTOR, DECEMBER 1998 ESCALATED COST AND ACE AND DPL'S SHARE OF ESCALATED COSTS FOR PEACH BOTTOM ATOMIC POWER STATION - UNIT TWO Escalation Factor - Peach Bottom Atomic Power Station - Unit Two (BWR):
WEIGHTED ESCALATION ESCALATION FACTOR PERCENTAGE FACTOR LABOR ENERGY BURIAL 1.66 (a) 0.63 (b) 6.968 (c)
TOTAL ESCALATION FACTOR-DECEMBER 1998 65%
13%
22%
(d)
(d)
(d) 1.08 0.08 1.53 2.70 ESCALATED COST - PEACH BOTTOM ATOMIC POWER STATION - UNIT TWO (In Thousands)
THERMAL RATING (MWt) 3,458 (e)
TIMES 9
(f)
PLUS MINIMUM DECOMMISSIONING COST PER NRC-1986 DOLLARS 1998 ESCALATION FACTOR TOTAL ESCALATED COST TO DECEMBER 1998 ACE AND DPL'S SHARE OF TOTAL ESCALATED COST (15.02%)
(a) See Page 2 for calculation
$ 31,122
$ 104,000
$ 135,122 2.70
$ 364,195
$ 54,702 (b) BWR 1998 Escalation Factor, NRC Minimum Financial Assurance Update - Reid & Priest Letter Dated February 19, 1999, Page 2. (See Appendix B).
(c) 1998 Waste Burial Factor For BWR Waste Vendor Option via South Carolina, NRC Minimum Financial Assurance Update - Reid & Priest Letter Dated February 19, 1999, Page 4. (See Appendix B).
(g)
(d) August 1990 NRC Regulatory Guide 1.159 - as referenced in the NRC Minimum Financial Assurance Update - Reid & Priest Letter Dated February 19, 1999, Page 1. (See Appendix B).
(e) Thermal Rating of Peach Bottom Unit obtained from Patty Lester in Supply Engineering &
Support of Conectiv at (302) 283-5719 (See Appendix C).
(f) August 1990 NRC Regulatory Guide 1.159 (g) August 1990 NRC Regulatory Guide 1.159 8
ESCAL{i.TION FACTOR, DECEMBER 1998 ESCALATED COST AND ACE AND DPL'S SHARE OF ESCALATED COSTS FOR PEACH BOTTOM ATOMIC POWER STATION - UNIT THREE Escalation Factor - Peach Bottom Atomic Power Station - Unit Three (BWR):
LABOR ENERGY BURIAL ESCALATION FACTOR 1.66 (a) 0.63 (b) 6.968 (c)
TOTAL ESCALATION FACTOR-DECEMBER 1998 PERCENTAGE 65%
13%
22%
(d)
(d)
(d)
WEIGHTED ESCALATION FACTOR 1.08 0.08 1.53 2.70 ESCALATED COST - PEACH BOTTOM ATOMIC POWER STATION - UNIT THREE (In Thousands)
THERMAL RATING (MWt) 3,458 (e)
TIMES 9
(f)
PLUS MINIMUM DECOMMISSIONING COST PER NRC - 1986 DOLLARS 1998 ESCALATION FACTOR TOTAL ESCALATED COST TO DECEMBER 1998 ACE AND DPL'S SHARE OF TOTAL ESCALATED COST (15.02%)
(a) See Page 2 for calculation
$ 31,122
$104,000
$135,122 2.70
$ 364,195
$ 54,702 (b) BWR 1998 Escalation Factor, NRC Minimum Financial Assurance Update - Reid & Priest Letter Dated February 19, 1999, Page 2. (See Appendix B)
(c) 1998 Waste Burial Factor For BWR Waste Vendor Option via South Carolina, NRC Minimum Financial Assurance Update - Reid & Priest Letter Dated February 19, 1999, Page 4. (See Appendix B).
(g)
(d) August 1990 NRC Regulatory Guide 1.159 - as referenced in the NRC Minimum Financial Assurance Update - Reid & Priest Letter Dated February 19, 1999, Page 1. (See Appendix B).
(e) Thermal Rating of Peach Bottom Unit obtained from Patty Lester in Supply Engineering &
Support of Conectiv at (302) 283-5719 (See Appendix C).
(f) August 1990 NRC Regulatory Guide 1.159 (g) August 1990 NRC Regulatory Guide 1.159 9
APPENDIX B
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~rL.~oz~ ~08-4000 FAX (202) 508-4321 www.thclenre1d.com February 19, 1999
~1 E !\\1 0 R A N D U M Highlights Rev1'>C.Cl Annual NRC Certification Update enclosed.
Enclosed 1s a revised Annual NRC Certification Update reflecting a change to the 1999 Energy Factor.
The e:iclosure is on white paper and dated February 19, 1999 to differenuate it from the l'pd.lte transmitted on February 10, 1999 (on yellow paper). Please redistribute the enclosure to tr.e appropriate personnel at your company, noting that the deadline for filing the annual repon v.11h the Nuclear Regulatory Commission is March 31, 1999.
We apologize wr any confusion caused by our earlier update.
Memoranda to the Utility Dccomm1ss1onrng Tax Group are periodic publications of Thelen Reid & Priest LLP designed to alert Group members to tax a.no re ;:u1&tory developments concerning nuclear decommissioning funds. The memoranda do not consurute legal advice or a le;:aJ op1won on any specific facts or circumstances.
ecopyng.ht 1999 by Thelen Read & Priest LLP. a California-registered limited liability partnership.
- i THELEN REID & PRIEST LLP ANNU~--\\L :\\RC CERTIFICATION UPDATE Each year. ',\\ e :--:-o' ;J..: :nrormauon n'ecessary for a nuclear licensee to update the "mmimum tinanc1al Jssur;.inc..:.!mount" for decommissioning a nuclear unit. as required by the
\\:uclear Regulatory l_-, 'mmi)S1,1n 1 \\:RC).
This briefing paper includes certain background information concern in>;'.:-::~ r'-*1.rn1rement of the :\\'RC as well as the data necessary for a licensee to calculate the mm1mum :::-:.. m..:1..ii assurance amount in December. 1998 dollars.
Background
The ~RC r:.:qu1rcs ~". e:"'. i 11.:ensee of a nuclear unit to certify that financial assurance for decommiss1onmg a nuc1..:.!.r ~;i:1 \\\\iii be provided in the minimum financial assurance amount prescribed by the ri;:gui..it1,,n..,,: the \\'RC. See 10 C.F.R. §§ 50.33(k) and 50.75. Typically, a licensee cemties to thi;: \\RC ::'.Jt 11 \\v1il make annual. levelized contributions to an external trust fund which. O\\*er the rcr-:-:::i::-:::-:1.: 1i..:ense period for the nuclear unit. will accumulate a sum equal to the mm1mum rinan..:1.!:.!-,,ur..L'1i.:e.1mount.
Each 11..:ensee :-:-:~-..:.;..;,u:-.1 the mmimum financial assurance amount annuallv to reflect intlat1on in the est1matel! ~**'t",q Jc.:commissioning. See 10 C.F.R. § 50.75(b). In addition, the licensee must ad_1ust ns ::.:::.:ri: ~,'ntnbuttons to the external decommissioning fund to approximate pro rata contnbut1ons., *. i:r '.:-'.I! remainmg license term. of the escalated minimum financial assurance.1ffiount n.:ma1n:n1.: :, 'tie.1ccumulated. See NRC Regulatory Guide 1.159. section 2.2.5.
Adjustments to the pro u:a._, 1ntnbut1ons may be made to coincide with ratemak.ing proceedings before a public serY11.:e ;,;, 1:-nm1... ~1lrn but such adjustments. in any event. should be made at least once e\\*erv li\\e \\ears. "*-*c '-RC Regulatory Guide l.159. section 2.1.5.
The computJtlL'n. : ::'.e..iJ_1usted minimum tinancial assurance.'.lmount is made by refrrence to: l l) a ri.mnu:..i L *r..:e:ermining a base amount expressed in January. 1986 dollars: and
( 2) an ad_1ustment ractN :,, '-*..,..:al:ite the base amount to reflect current dollars. See I 0 C.F.R.
§ 50.75(c). The b:is-:..unL1un: 1n 1986 dollars is S 105 million and S 135 million for a pressurized water reactor ( P\\\\ "R l.ir.J.J ~ii1ng water reactor ( 8\\\\-"R). respectively, assuming each has greater than 3.-.+00 \\1Wt. See i 11 Cf' R. § 50. 75(c)( 1 ). The adjustment factor must be:
at least equal tL) 11 D5L - 11.13E - U.228.. _.where Land E are escalation factors for labor and energy. ;:..:spect1vely. and are to be taken from regional data of U.S.
Depanment of L..ibor Bureau of Labor Statistics and B is an escalation factor for waste bunal and 1~ i,, nt: t~en from \\:RC :<uREG-1307, Report on Waste Burial Charees.
See 10 C.F.R. § 50.-51-:11.:1.
Page I
'ew Reporting Requirements Pursuant to J. ne ruk*,,r the :\\RC promulgated in September. 1998. a licensee is required to tile a report lth the :\\RC,,n the status of its decommissioning funding by March 31. 1999.
and at least once e\\*er: t\\\\o :cars thereatter. See 10 C.F.R. § 50.75(f). Annual reporting is required for a plant that 1:; llhm ti,*e years of the projected end of its operation. or where conditions haw changed sucn that 1t will close v-:ithin five years. or already has closed. Id. The information m the report rr.ust :nclude 1 I l the amount of decommissioning funds estimated to be i required pursuant to I l) c.r R 5 50.751 bl and (c): (2) the amount accumulated to the end of the j calendar year preceding the J.i:e or" the report: U) a sched~le of th_e ~ual amounts _remaining to I
, be collected: 1-+ \\ the assumpu,ins used regarding rates ot escalation m decomm1ss1omng costs,
. rates ot earnings on decomm1ss1onmg funds. and rates of other factors used in funding projections:
j ( 5_l any contract the licensee :, rei: 1ng upon pursuant to 10 C.F.R. § 50. 75( e)( 1 )(\\") for collections 1 ot decomm1ss1omng monie:. from customers: ( 6) any modifications to the method of providing financial assurance since ::-::: !.ist submitted report: and (7) any material changes to the decomm1ss1onmg trust a~ree:;::::-.u s 1. IJ.
1999 Escalation Factors In ant1c1pJ.uon o1 :~::.\\ :.1n:n ~ i. 1999 reporting deadline on the status of decommissioning fundin~. e hJ.\\ e caiculJ.teJ ::0-::: ! l)qq escalation factors as follows:
~
i '1111.\\
BURIAL PWR
~
'\\'nh~~1
! "h
-' R
~-
'-o1utn
'l',I. R Direct 3 165 I~.iOJ
\\11d\\\\e\\t
:UREG-1307 (Revision 8).
l f you ha\\*e :.my ques! 1L1ns concerning the :\\RC minimum financial assurance amount.
please c::ill Patricia \\L !leai',,r \\1artha G. Pugh at 202-508-4000.
February 19, 1999 Page 2 J
Re111on
'-:onheast S0utn
\\11do,.o.est
\\\\.est Re111on
'ionheast Soutn
\\1100,.0.c~t
\\\\. e-;t I 999 LABOR FACTOR Step One
,1mrutat1on or' Decemher *qR with I q~ I Base
-H) 'QQ
( J 9~Q l'!J..,C I
- :q ~
l ~S I
!-ll -l 140 0 Jan. '86
( l C)R l Aa.-;e 1*
i 30.5
- 25.0 I :;O.!
June '89 June '89 1 I qRq Base)
(!981 Base)
- oo.o 155.5 100.0 144.1
!00.0 140.9
- oo.o 144.9 Step Two 1.'mrutat1on ot Labor Escalation Factor J() '98
. : qQ I Base)
- :6.92
- 99.00
- 'l9.2J 202.86 L = 4Q '98/
Jan. '86 ( 1981 Base) 1.66 1.56 1.59 1.56 The: regions consist 01:~c1.-... n**n~ geographical areas:
4Q '98
(!981 Basd 216.92 199.00 199.23 202.86
~onhc:ast -- Cunnecuc:..::. '.~J.ne. \\1assachusetts. New Hampshire. New Jersey. New York. Pennsylvania.
Rhode Island and \\'crmon1 South*-.\\iabama. An.J.Il'.i'. i.).:1Jo,1,are. Florida. Georgia. Kentucky. Lou1s1ana. Maryland. \\11ss1ss1ppi.
'-'onh Ciro11na. Oldahcrr.i. ""u:n Ciroiina. Tennessee. Texas. \\'irginta and \\Vest \\'1rgtn1a.
\\11do,1,c-;1 -- iil1no1s. lr:...::an.i....... a. KJ.r1sas. M1ch1gan. Minnesota. \\1issoun. Nebraska. Nonh Dakota. Ohio.
Soutn Dakota. r c:v.as an<..1 1\\ **".Jn\\ln.
We-;t --.\\r1zona.. 1...".i:11om1i.,.,,,rallo. Idaho. \\1ontana. Nevada. New Mexico. Oregon. Utah. Washington and \\I. vom1ng.
\\'alues 1*or the founh..;c.J.flc~ 1'1 : *llll\\ used in this chart were obtained from the Bureau of Labor Statistics made a\\ aiiable on 1ne \\\\ Pr1<..10,.0.1ue Web.
The 4Q *q11 factor t l 'l ~I h;bc 1 " computed by multiplying the 40 '98 factor ( 1989 base I by the following
- racuon:
.:.. me \\Q factor ( I q:;; 1 base)
- .me *~q factor ( i 989 base).
We h:i\\e discussed th1' rr.ctnouoiog:;. o,.o.1th NRC personnel who appro\\*e at IL Per !\\RC Rcguiatorv lH.iiJC I : ~<J. section 1.2.
Page 3
ti{..... 1 I'.
- 1.
~
-L j '.l"'
I.
.).
1999 E~ERGY FACTOR P (Dec. '98) 1 F tDec. ll8)' 1 P (Jan. "86)
F 1 IJn *Rn) 127.S l l-L2" -= 1.1:.
- 0:. S2.0 = 48
.85
.63 Values for December. : '108 fur ekctric power (P) and fuel oil (F) were obtained from the "Producer Price lnJe'..es *made available by the U.S. Department of Labor. Bureau of Labor Statistics L)n t!"::: \\\\"nrld Wide Web. The values are preliminary and are subject to final adiustmem up to four months after original publication.
E = 0.58P - o 42F. ;:er '.RC Re~uiatory Guide 1.159, section 1.2.
E = 11.23P - 0.77F. ;:;.:r '-,RC Reguiatory Guide 1.159. section 1.2.
The base' alue or eb::~:..: ~,mer t Pl is no longer determined on a regional basis: the national base' alui:: t':..:'...::.::r:c power ( P) for January. 1986 is 114.2.
~ 1998 ( direcu
/ 1998,,.,aste \\endori t 9QQ \\\\'.\\STE BURIAL FACTOR; P\\VR/BWRPWR/BWR
\\\\"ashington' 3.165/14.403 4.538/J 5.203 South Carolina*'
15.886113. 948 7.173/6. 968 See Table 2.1 of "Repon on \\Vaste Burial Charges." ~UREG-1307. Revision 8 (December. 1 G98)
Effect1,*e January 1. : lJG~. the Washington site is not accepting waste from outside the
- \\orthwest and Rock~ \\ 1ountain Compacts.
Effect1w July 1. I G95...i..;cess is allov.:ed for all states except North Carolina.
Page 4
APPENDIXC
conectiv Treasury Services Internal Correspondence Date: March 15, 1999 Re:
Updated Thermal Ratings of Nuclear Facilities To:
Garry Musto From: Stacy A. Le Piere The following are updated megawatt thermal ratings of the company's nuclear facilities obtained from Patty Lester in Supply Engineering & Support at (302) 283-5719 and used in the 1998 Nuclear Regulatory Commission (NRC) Filing:
Nuclear Facility Salem Unit One Salem Unit Two Peach Bottom Two Peach Bottom Three Hope Creek Thermal Rating 3411 MWt 3411 MWt 3458 MWt 3458 MWt 3293 MWt 2
APPENDIX D 1
Station HC1 SAL1 SAL2 PB2 PB3 Total Station HC1 SAL1 SAL2 PB2 PB3 Total Market Value of Nuclear Decommissioning Fund Assets At December 31, 1998 Qualified Non-Qualified ACE DPL*
Total ACE DPL*
$9,673,556
$0
$9,673,556
$7,522
$0
$16,446,956
$12,974, 182
$29,421, 138
$5,550,268
$1,568,983
$13,098,637
$12,046,639
$25, 145,275
$2,514,573
$733,835
$15,611,906
$12,277,871
$27,889,776
$8,969,204
$2,924,701
$16,879,750
$12,281,613
$29, 161,363
$9,429,795
$2,923,919
$71,710,804
$49,580,305 $121,291,109
$26,471,362
$8, 151,438 Qualified & Non-Qualified Combined DPL ACE DPL*
Total Internal
$9,681,078
$0
$9,681,078
$0
$21,997,224
$14,543, 165
$36,540,389
$4,495,061
$15,613,210
$12,780,473
$28,393,683
$2,032,401
$24,581, 109
$15,202,572
$39,783,681
$2,609,870
$26,309,545
$15,205,532
$41,515,077
$2,610,683
$98, 182, 166
$57,731,743 $155,913,909
$11,748,015
- DPL Detailed Support External NOT Funds Trust Fund Assets Broken Down Into Delmarva Jurisdictions DPL DPL DPL DPL DPL Station DE MD VA FERC Total SAL 1 - Q
$8,093,469
$2,328,597
$525,545
$2,026,571
$12,974,182 SAL 1 - NQ
$1,242,669
$165,067
$63,108
$98, 139
$1,568,983 SAL2 -Q
$7,669,964
$2, 169,578
$493,780
$1,713,317
$12,046,639 SAL2 - NQ
$562,684
$73, 120
$50,512
$47,518
$733,835 PB2-Q
$7,716,079
$2, 136,343
$443,812
$1,981,637
$12,277,871 PB2 - NQ
$2,201,276
$387, 174
$56,953
$279,298
$2,924,701 PB3-Q
$7,719,932
$2,137,389
$441,577
$1,982,715
$12,281,613 PB3 - NQ
$2,201,125
$387, 104
$56,672
$279,018
$2,923,919 Total Qual
$49,580,305 Total Non-Qua!
$8,151,438 Grand Total
$57,731,743 Total
$7,522
$7,119,251
$3,248,408
$11,893,905
$12,353,714
$34,622,800 Total Assets
$9,681,078
$41,035,450
$30,426,084
$42,393,551
$44, 125, 760
$167,661,924 2
Nuclear Facility Hope Creek Salem Unit One Salem Unit Two Peach Bottom Two Peach Bottom Three Total DE SAL1
$490,392 SAL2
$495,024 PB2
$658,884 PB3
$658,884 Total
$2,303,184 DE SAL1
$195,120 SAL2
$88,584 PB2
$317,280 PB3
~317,280 Total
$918,264 1998 Nuclear Decommissioning Trust Annual Funding Amounts (In Thousands)
ACE DPL
$825
$0
$689
$873
$1, 114
$765
$1,826
$1,301
$1,970
~
$6,424
$4,240 Annual Trust Contributions
$825
$1,562
$1,879
$3,127
$3,271
$10,664 Recap of 1998 Delmarva NOT Funding Contributions By Jurisdiction and Unit Qualified Contributions MD VA FERC Total
$51,636
$30,564
$75,996
$648,588
$57,996
$32,004
$78,252
$663,276
$106,332
$38,076
$113,820
$917,112
~106,332
$38,076
~113,820
~917,112
$322,296
$138,720
$381,888
$3,146,088 Non-Qualified Contributions MD VA FERC Total
$14,064
$5,772
$8,868
$223,824
$6, 156
$2,388
$4,488
$101,616
$32,736
$9,684
$24,660
$384,360
~32,736
$9,684
$24,660
~384,360
$85,692
$27,528
$62,676
$1,094,160 Combined Qualified and Non-Qualified Contributions DE MD VA FERC Total SAL1
$685,512
$65,700
$36,336
$84,864
$872,412 SAL2
$583,608
$64,152
$34,392
$82,740
$764,892 PB2
$976,164
$139,068
$47,760
$138,480
$1,301,472 PB3
~976, 164
§139,068
$47,760
§138,480
§1,301,472 Total
$3,221,448
$407,988
$166,248
$444,564
$4,240,248 3
1998 Nuclear Decommissioning NRC Liabilities and Assets Analysis
{In Thousands)
NRC Internal Shortfall/
Nuclear Minimum and External Remaining Life Remaining Annual Trust Facility Assurance Assets Shortfall Of Facility Facility Life Contributions HC
$18,010
$9,681
$8,329 27
$308.48
$825 SAL1
$43,088
$41,035
$2,053 17
$120.76
$1,562 SAL2
$43,088
$30,426
$12,662 21
$602.95
$1,879 PB2
$54,702
$42,393
$12,309 14
$879.21
$3, 127 PB3
$54,702
$44,125
$10,577 15
$705.13
$3,271 Total
$213,590
$167,660
$45,930
$2,616.55
$10,664 4