ML19092A293

Decommissioning Funding Status Report

ML19092A293
Person / Time
Site:	Millstone
Issue date:	03/26/2019
From:	Gerald Bichof Dominion Energy Nuclear Connecticut
To:	Document Control Desk, Office of Nuclear Reactor Regulation
References
19-048
Download: ML19092A293 (6)

Text

{{#Wiki_filter:\\r Dominion Energy Nuclear Connecticut, Inc. 5000 Dominion Boulevard, _Glen Allen, VA 23060 Dominion Energy.com March 26, 2019 United States Nuclear Regulatory Commission Attention: Document Control Desk Washington, D. C. 20555-0001 DOMINION ENERGY NUCLEAR CONNECTICUT, INC. MILLSTONE POWER STATION UNIT 1 DECOMMISSIONING FUNDING STATUS REPORT Serial No. NRA/TJS Docket No. License No. 19-048 Rev. 0 50-245 DPR-21 Pursuant to 10 CFR 50.75(f)(1) and 10 CFR 50.82(a)(8)(v)-(vii), Dominion Energy Nuclear Connecticut, Inc. (DENC), is providing this report on the status

• of decommissioning funding for Millstone Power Station Unit 1 (MPS1). proviqes the following information for MPS1:

Table I - Decommissioning Funding Status Re.port for MPS1 Summary Information as of December 31, 2018 . Table II~ Decommissioning Funding Status Report for MPS1

• Annual Cash Flow Analysis Starting January 1, 2019 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 2018 dollars is 1.61 % and is based upon the average of CPI-U rates, Bureau of Labor Statistics, FCPIU.US CPI: Consumer Price Index for All Urban Consumers, (Index 1982-84= 100, SA) for that period.

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 DENC 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 21, 2018 (Serial No. 18-090, ADAMS Accession No. ML18092A080) for MPS1 there have been no material changes to the Trust agreements established for nuclear decommissioning.

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Serial No. 19-048 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, i.~rfZ--!J Senior Vice President-Nuclear Operations & Fleet Performance Dominion Energy Nuclear Connecticut, Inc.

Attachment:

1. Decommissioning Funding Status Report for MPS1, Summary Information as of December 31, 2018 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

Decommissioning Funding Status Report for MPS1 Summary Information as of December 31, 2018 Millstone Power Station - Unit 1 Dominion Energy Nuclear Connecticut, Inc. (DENC) Serial No. 19-048 Docket No.50-245

',1 Serial No. 19-048 Docket No.50-245 Page 1 of 3 Millstone Power Station Unit 1 Decommissioning Funding Status Report as of December 31, 2018 Table I Decommissioning Funding Status Report for MPS1 Summary Information as of December 31, 2018 10 CFR 50.82 {a)(8)(v)-{vii) (in millions) Decommissionina Trust Fund Balances 10 CFR Reference l50.S2(a)(8)(v)(A) Fund Balance Tvoe of Trusts Comments 508.838 Unit 1 aualified fund balance As of: 12/31/2018 Unit 1 non-aualified fund balance As of: 12/31/2018 4.228 Less costs incurred but not vet billed to Trust Actual Cost in: 2018 504.610 Adiusted decommissionina fund balance As of: 12/31/2018 Other Financial Assurance Methods Being Relied Upon 10 CFR Reference l50.82(a)(B)(v)(A) None Prior Years Decommissioning Expenditures 10 CFR Reference l50.82(a)(B)(v)(A) Total License Term Spent Fuel Mamt Site Restoration Comments 4.228 $ 0.320 $ 3.908 $ 2018 Cost in: 2018 90.980 $ 48.296 42.684 2001-2017 Cost in: As-Spent 95.208 $ 48.616 46.592 Total Prior Year in: As-Spent Prior Year Decommissioning Expenditures Variance to Estimated Cost 10 CFR Reference l50.82(a){B)(v)(B) Total License Term Soent Fuel Mamt Site Restoration Comments 4.228 $ Actual Costin 2018 5.137 $ NRC Auth $ in 2018 /0.909) $ Variance: Underrun to NRC Authorized Expenditures Remaining Decommissioning Estimated Cost 10 CFR Reference l50.82(a)(8)(v)(B) Total License Term Soent Fuel Mamt Site Restoration Comments 394.764 $ 301.206 $ 71.163 22.395 Estimate in: 2019 Decommissioning Criteria Upon Which the Estimate is Based 10 CFR Reference l50.82(a)(8)(v)(B) SAFSTOR Any Modification To Method of Providing Financial Assurance 10 CFR Reference l50.82(a)(B)(v)(C) None Any Material Changes To Trust Agreement Since Previous Report 10 CFR Reference l50.82(a)(B)(v)(D) None Need For Additional Financial Assurance 10 CFR Reference l50.82(a)(B)(vi) None See Annual Cash Flow Analysis in Table II Inputs to Remaining Cost and Funding Analysis I 2019 Start year of Remaininq Cost and Fundinq analysis 1.61% Escalate study dollars from Study Year to Start Year of Analvsis usina an averaae of CPI rates 0.00% Escalation rate 2019 & Bevond l50.82(a)(8)(vii)(A) Dollars I I Dollars Dollars Dollars I Dollars Dollars l50.82(a)(B)(vii)(B) Dollars I I I l50.S2(a)(8)(vii)(C) I 2.00% Fund qrowth rate 2019 & Beyond (Reflects NRC allowed 2% Real Rate of Return) Projected annual expenditures - see Annual Cash Flow Analysis in Table II Notes: Table I

1) Previous decommissioning expenditures represent the withdrawals from the nuclear decommissioning trusts made by Dominion Energy 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 DENC's previous notices to the NRC, as well as allowed ordinary administrative costs.

3) 2018 NRC Authorized expenditures of $5.137 million are based on $5 million (rounded) in 2017 dollars as described in DENC's submittal dated August 22, 2017 (Serial No. 18-289, ADAMS Accession No. ML17240A170).

Year 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. 19-048 Docket No.50-245 Page 2 of 3 Decommissioning Funding Status Report as of December 31, 2018 Table II Decommissioning Funding Status Report for MPS1 Annual Cash Flow Analysis Starting January 1, 2019 through End of Decommissioning . 10 CFR 50.82 (a)(8)(v)-(vii) (In 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 Termination Spent Fuel Mgmt Site Restoration SAFSTOR of Year Trust Funds Expenditures Expenditures Expenditures Expenditures Year Balance (Reflects 2% RRoR) (Reflects 0% Esc) (Reflects 0% Esc) (Reflects 0% Esc) (Reflects 0% Esc) Balance 504.610 10.045 1.123 3.609 4.732 509.923 509.923 10.151 1.123 3.609 4.732 515.342 515.342 10.263 1.650 2.756 4.406 521.199 521.199 10.382 1.650 2.516 4.166 527.415 527.415 10.507 1.650 2.516 4.166 533.755 533.755 10.633 1.650 2.516 4.166 540.222 540.222 10.703 7.242 2.916 10.158 $ 540.767 540.767 10.771 1.650 2.756 4.406 547.132 547.132 10.898 1.650 2.789 4.439 553.592 553.592 11.010 1.650 4.568 6.218 558.384 558.384 11.108 1.650 4.276 5.926 $ 563.566 563.566 11.230 1.650 2.516 4.166 570.630 570.630 11.369 1.650 2.756 4.406 577.592 577.592 11.510 1.650 2.516 4.166 584.936 584.936 11.657 1.650 2.516 4.166 592.426 592.426 11.807 1.650 2.516 4.166 600.067 600.067 11.953 2.316 2.516 4.832 607.188 607.188 12.100 1.650 2.756 4.406 614.881 614.881 12.256 1.650 2.516 4.166 622.971 622.971 12.418 1.650 2.516 4.166 631.222 631.222 12.583 1.650 2.516 4.166 639.638 639.638 12.751 1.650 2.516 4.166 648.223 648.223 12.923 1.650 2.516 4.166 656.979 656.979 13.098 1.650 2.516 4.166 665.911 665.911 13.264 2.911 2.516 5.428 673.747 673.747 13.356 11.313 0.627 11.940 $ 675.163 675.163 13.462 4.137 4.137 684.487 684.487 13.675 1.500 1.500 $ 696.662 696.662 13.918 1.500 1.500 $ 709.080 709.080 14.154 2.710 2.710 720.524 720.524 13.804 60.680 60.680 673.647 673.647 12.627 84.633 84.633 $ 601.641 601.641 11.245 78.797 78.797 534.090 534.090 10.669 1.276 1.276 $ 543.482 543.482 10.649 0.110 21.907 22.017 532.115 532.115 10.638 0.041 0.388 0.429 542.323 542.323 10.845 0.100 0.100 553.069 553.069 11.061 564.130 564.130 11.283 575.413 575.413 11.508 586.921 586.921 11.738 598.659 598.659 11.973 610.633 610.633 12.213 622.845 622.845 12.457 635.302 635.302 12.706 648.008 648.008 12.960 660.968 660.968 13.219 674.188 674.188 13.484 687.671 687.671 13.753 701.425 701.425 14.028 715.453 715.453 14.309 729.762 729.762 14.595 744.358 744.358 14.819 6.792 6.792 752.385 2019 Dollars 301.206 71.163 22.395 394.764 Est. Fund Balance (end of Decommissioning) (In Future $ escalated at 0.0% & 2.0% Real Rate of Return Fund Growth Rate) 752.385 Est. Fund Balance (end of Decommissioning) discounted to 2019 Dollars Discount Rate = 2.00% 268.678

Serial No. 19-048 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 2019 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 funding information 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 projected earnings are added and 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, 2018, 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.}}