ML19325E238
ML19325E238 | |
Person / Time | |
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Site: | Fort Calhoun ![]() |
Issue date: | 10/27/1989 |
From: | Morris K OMAHA PUBLIC POWER DISTRICT |
To: | NRC OFFICE OF INFORMATION RESOURCES MANAGEMENT (IRM) |
References | |
LIC-89-998, NUDOCS 8911030040 | |
Download: ML19325E238 (28) | |
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Omahe PutWic Power District 1623 Harney Omaha, Nebraska 68102 224' ,
402/536 4000 -
October 27, 1989 LIC 89-998 U. S. Nuclear Regulatory Commission Attn: Document Control Desk Mail Station PI-137 i Washington, DC 20555 ';
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References:
- 1. Docket No. 50-285 l
- 2. Federal Regir.ter 53FR24018 dated June 27, 1988 !
Gentlemen: !
SUBJECT:
'Decomissioning Funding Plan for. Fort Calhoun Station (FCS)-
'The NRC published in Reference 2 a final rule to provide specific requirements
.for the decomissioning of nuclear incilities. Contained in this firal rule is i a requirement to submit a decommissioning funding plan by July 27, 1990. !
Enclosed for NRC review is Orraha Public Power District's (CPPD) Fort Calhoun i Station Unit' No.1 Decomissioning Funding Plan ar.d associ+ ied Trust Agreement. [
These documents satisfy the requirements of NRC Regulation 10 CFR 50.75 while i also meeting the unique needs of CPPD. l t
OPPD's corporate status has a direct impact on the structure of our !
Decomissioning F::ading Plan. The following items are important !
characteristics of the District; therefore, OPPD requests that these be kept in !
mind during your review'
- 1. OPPD is 4 political subdivision of the State of Nebraska and a public i corporation, thus its funds are subject to State statutes. The Board !
of Directors has complete and final corporate authority for the !
l operation and eventual decommissioning of Fort Calhoun Station. l
- 2. OPPD initiated a Decommissioning Funding Plan for the Fort Calhoun l Station Unit No. 1 in February 1983 and has since been funding under ;
that Plan. OPPD presently has in excess of $25 million collected and l invested in U. S. Treasury Securities, Upon successful e::ecution of ;
- this plan, these monies will be transferred to the new Plan. !
- 3. OPPD is an entity exempt from taxation under Section 501 (c) of the j Internal Revenue Code. As such, the earnings on investments within the Decommissioning Trust Account will acciue without the effect of taxes if this Trust Agreement is executed as proposed.
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U. S. Nuclear Regulatory Commission l LIC 89-998 i Page 2 l
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- 4. OPPD's investments are limited to those of its Bond Indenture and l State statutes, which are primarily Treasuries and Government Agency l Securities. OPPD intends to abide by these conservative standards in >
this Trust Agreement. Additionally, OPPD's investments are purchased l with a
- buy and hold to maturity" philosophy. Given this practice, OPPD's valuation methods follow an amortized cost approach for accounting and audit purposes.
- 5. OPPD's withdrawal procedures providing for the actual Decommissioning l expenditures follow similar ones within its Bond Indentures for use of r borrowed Construction monies. These procedures provide a good :
" tracking" of funds meeting all audit requirements. ,
r The following is OPPD's method for impismentation of the Plan: l
- 1. A' review of Plan documents was. conducted by OPPD's Board of Directors !
on October 10, 1989 for submittal to NRC. ;
- 2. After acceptance by the NRC, OPPD will submit the Plan to several Trust Companies for cost proposals and select one as Trustee. ;
- 3. The Plan will be submitted'to the Board of Directors for final approval.
- 4. Documents will be executed and the Plan implemented.
If you have any questions regarding the FCS Decommissioning Funding Plan, i please contact Mr. J. W. Marcil, Division Manager - Finance, at (402) 636-3060. ;
Sincerely, J. orris Division Manager '
Nuclear Operations KJM/pje Attachments i c: LeBoeuf, Lamb, Leiby & MacRae l R. D. Martin, NRC Regional Administrator i
A. Sournia, NRC Project Manager P. H. Harrell, NRC Senior Resident Inspector Robert S. Wood, NRC :
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t Fort Calhoun Station Unit 110. 1 Decommissioning Funding Plan (the "1990 Plan")
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! Fort Calhoun Station Unit No. 1 !
S Decommissioning Funding Plan (the "1990 Plan") j c
Section 1 - Introduction l i
omaha Public Power District's (the " District") Fo7 Calhoun i Nuclear Power Generating Station Unit No. l's (the " Station") ;
current operating license (the " License") issued by the Nuclear !
Regulatory Commission (the "NRC") expires in the year 2008. For ,
plannir.g purposes, it is assumed the Station will ba retired at !
w that time. In . order to terminate the License, it will be )
necessary to Decommission the Station which the NRC defines ast .
"to remove [the Station) safely from service and reduce residual !
radioactivity to a level that permits release of th-3 property for !
' unrestricted usa and termination of the License" (the :
" Decommissioning"). l The District established a formal plan for the funding of the .
Decommissioning of the Station in February, 1983 (the "1983 :
, Plan"). The 1983 Plan resulted from the efforts of an internal ;
task force and a nationally recognized consultant. The District's Board of Directors have implemented the 1983 Plan and its current l status is detailed further below. t Section 2 - NRC Financial Regulations For Decommissioning r
The NRC issued regulations in June 1983 and a subsequent Regulatory Guide setting forth finhncial criteria for '
Decommissioning licensed nuclear facilities. This 1990 Plan addresses those regulations and criteria. ;
Section 3 - NRC Decommissioning Estimate -
Fort Calhoun Station '
Unit No. 1 NRC regul Hion 10 CFR 50.75(c) elabolates on three items to provide hdaquate funding for Decommissioning.
First, a Minimum Decommissioning Amount for Decommissioning licensed facilities is calculated based on a pressurized water
_c reactor ('PRR") and on the facility's megawatt thermal rating
("MWt"). The Station is a PWR of 1500 MWt rating. The '
computation for the Minimum Decommissioning Amount in 1986 dollars for the Station is as follows:
($75 million + $8000 P),
where P equals the reactor's MWt rating
$75 million + $8800(1500 MWt)
$75 million + $13.2 million = $88.2 million
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i Second, the Minimum Decommissioning Amount is to be adjusted r annually using the following formula. l (Minimum Decommissioning Amount) X (.65L + .13E + .22B) l i
The "L", "E" and "B" in the formula are escalation factors for !
Labor, Energy, and Weste Burial, respectively. Further, the Energy Index is composed of two factors - Industrial Power and !
Light Fuel Oils weighted as indicated. For the Station, the r January 1986 NRC Minimum Decommissioning Amount of $88.2 million l is escalated as follows: ,
j Indices ;
Labor '
U. S. Departmen of Labor - Bureau of Labor Etatistics Employment Cos. Index Private Nonfarm Workers *12-88 138.0 = .104 . increase Compensation (Midwest Region) 1-86 125.0 ,
- index evailable on quarterly basis only Energy :
U. S. Department of Labor - Bureau of Labor Statistics Producer Price Index Industrial Power 1-89 128.2 = .1085 increase (West North Central Region) 1-86 115.65 Light Fuel Oils 1-89 54.9 = .3305 decrease 1-86 82.0 Application of the formula to 1-1989 leads to =
Energy = ( (128. 2/115. 65) X. 58) + ( (54. 9/82. 0) X. 4 2) l Energy = .6429 + .2812 l Energy = .9241 a decrease of 7.59%
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Waste Burial Washington Index 1-88 1.01 = .01 increase NUREG-A307 1-86 1.00 L Nevada Index 1-88 .959 = .041 decrease ;
1-86 1.000 South Carolina Index 1-88 1.536 = .536 increase 1-86 1.000 Due to three Waste Burial indices provided in the NRC regulations, three separate escalated cor.t formulas were developed.
Washington Index '
$88. 2 million + ( ($88. 2 million) ( . 65 ( .104 ) +. 3 3 ( . 07 59) +. 22 ( . 01) ) =
$ 93,486,000 l
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Nevada Indesi i
$88.2 million + (($88.2 million) (.65(.104)v.1:1( .0759)+.22(~.041)) !
= $ 92,496,000 '
l South Carolina Indes j
$D8.2 million + (($88.2 million) ( . 65 ( .104 ) +.13 ( . 07 59) + . 2 2 ( . 53 6) )
= $10s,693,000 l An average of the Minimum Decommissioning Amount for the thren !
burial.sitas results in the following average escalated cost: ;
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Washington Index = $ 93,486,000 f Nevada Index = $ 92,496,000 r South Chrolina Index = _$1LO3,693,000
$289,675,000 divided by 3 s = :
9 96,558,000_ !
The 1990 Plan will use the average of the three burial site !
s indices in calculating the annual adjustment to the Minimum Decommissioning Amount until such time as a specific site is determined, or upon NRC direction.
Third, a method of providing for financial assurance must be selected. This 1990 Plan provides for the establishment of an external trust fund.
Additicnally, five years prior to the projected end of the Station's operation, a site specific plan will be submitted with an up-to-date estimate of the cost of Decommissioning.
l Section 4 - Current Status of the 1983 Plan i
The January 1982 estimated Decommissioning cost of $63 million has ;
been adjusted annually and has received two separate reviews at three-year intervals by the District's external consultant. :
Accordingly, the January 1989 estimated Decommissioning cost is ,
N $105,400,000. The current Decommissioning Fund Balance (that
\ amount which has been collected from the District's customers plus ,
interest earninos) is herein defined as the " Balance Amount". The Balance Amount is invested in U. S. Treasury Securities as directed by the District's Bond Indenture and will be transferred i to the new external Decommissioning trust fund as provided in '
Section 5.
l Section 5 - Annual Deposits to the Decommissioning Trust _ Fund l
To comply with th e. new NRC regulations, a Trust Agreement is created as Attachmant A to this 1990 Plan. The Trust Agreement '
l establishes an external trust fund (the " Fund") for the accumulation of sufficient monies to meet the estimated costs of Decommissioning the Station. Annual deposits to the Fund (the
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" Annual Payments") will be calculated as follows: i
,m First Year l t
The first Annual Payment to be deposited into the Fund will be the ;
greater of the two following l l
A. The District's Minimum Decommissioning Cost as determined i e using the herein defined NRC regulatedtformula divided by 26 (the j years "of nmaining License life at the time of the 1983 Plan) {
timr ,me number of years monies have been funded internally);
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B. The Balance Asount (as herein defined). ]
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Tha first Annual Payment shall be met by depositing into the Fund, l on the Effective Date of the Trust Agreement, such monies and l unmatured securities (valued at amortized book cost) now held by <
the District in the District's presently existing internal Fort Calhoun Station Unit No. 1 Decommissioning Fund pursuant to the 1983 Plan, plus a.'y additional funds, as are necessary to meet j this first Annuai rayment. ;
subsequent Years ,
Tr.a Annual Paynent required to be deposited to the Fund by the District for the second and subsequent years during the term of the Trust Agreement is calculated according to the following ,
formula .
Decommissioning Cost Estimate
, Revised for the Annue.1 Adjustment .
(as determined by NRC regulation 10 CFR 50.75(c))
A. Equals the Estimated Revised Minimum
- Decommissioning Amount $ [
B. Less the current baltnce in the Fund after the remittance of any " Paid Earnings", ;
any "Cartification" payments and any " General Withdrawals" (as defined in the Trust i Agreement) made in the present year $ l C. Equals the Uncollected Estimated Minimum Decommissioning Amount $_, ,
-' D. Divided by tl.e Station's Remaining Years of Operating Life r i E. Equals Amount of Present Year's Annual Payment $
Section 6 - Normal Plant Life Decommissioning s
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As indicated in Section 1, the Station's Licenss expires in 2008. '
That date is used for planning purposes and serves as a basis for ,
this 1990 Plan. The District may apply for an extension of the l License expiration date at some future time and in the event such !
application is made and approved by the NRC, the e plicable !
Sections of this 1990 Plan will be changed accordingly.
This-1990 Plan is designed to cover a normal Decommissioning of i the Station. In the event of a premature Decommissioning of the Station, separate financial considerations may become necessary ;
and accordingly a new funding plan would be developed at that time ,
in conformance with NRC direction. '
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'b J J.TTACHMENT "A" TRUST AGREEMENT i This Trust Agreement, (the " Agreement") dated as of
, IP , by and between Omaha Public Power Dis-trict, a public corporation and political subdivision of the State of Nebraska (the " District") and .
,, a National chartered and doing business by virtue of the laws of the United States of America with its principal place of business in
_, , as External Fund l Trustee (the " Trustee");
WITiiESSETH WHEREAS, the District presently owns and operates the Fort ;
Calhoun Nuclear Power Generating Station Unit No. 1 (the
" Station") under Operating License Number DPR-40 (the " License")
issued by the Nuclear Regulatory Commission (the "NRC"); and WHEREAS, the License is expected to expire on June 7, 2008, at which time the District desires to remove the Station safely from service and reduce residua 3 radioactivity to a level that ;
permits termination of the License (the " Decommissioning"); and .
L WHEREAS, to ensure that sufficient funds are cvailable to pay j the costs of Decommissioning the Station, NRC regulations 10 i C.F.R. Part 50, as amended from time to time, require the District to establish and maintain an External Trust Fund (hereinafter defined) by depositing iands in an account segregated from the .
District's assets; and l
WHEREAS, Rasolution Number was adopted by the Board of Directors of the District on , 19 , (the ;
" Resolution") which Resolution permits the District to establish ;
such External Trust Fund with the Trustee upon the terms and conditions hereinafter set forth in this Agreement.
l NOW THEREFORE, in consideration of the forogoing and the 1
- mutual covenants hereinafter set forth, the parties heretc agree i
as follows:
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, SECTION 1. RESOLUTION The Trustee hereby acknowledges receipt of a true and correct copy of the Resolution establishing the Fund'(as herein defined). i l
SECTION 2. ESTABLISHMENT OF FUND 1 There in hereby established for the benefit of the NRC, tne {
customer-owners of the District and the citizens of the State of Nebraska; and for the purpose of discharging the District's legal l
obligation to accomplish the Decommissioning, a segregated ;
External Trust Fund designated the " Omaha Public Power District Fort Calhoun Station Decommissioning External Trust Fund" (the
" Fund") to be neld in the custody of the Trustee. On the Effective Date (hereinnfter defined) of the Agreement, there shall [
be deposited in the Fund, the First Annual Payment (as herein j defined). After the date of the aforementioned First Annual !
Payment, the District shall make periodic additional deposits to !
the Fund, the frequency of which shall be determined by the ,
District in its sole discretion; except that such additional j deposits must be remitted to the Trustee at least annually, and in l such amounts which at least equal the Annual Payment (hereinafter j defined) required for each twelve (12) month period during the term of the Agreement. The minimum aggregate annual amount of such deposit or depocits required by the Agreement to be deposited in the Fund shall be determined in the m.aner set forth in Section l 4 herein.
SECTION 3. GRANTOR TRUST i The parties hereby acknowledge that the District is an entity excmpt from taxation under Section 501(c) of the Internal Revenue ,
Code of 1986, as amended. The parties agree that the Fund herein established is a Grantor Trust pursuant to Section 671 et. seq. of ,
the Internal Revenue Code of 1986, as amended; that the District is the owner of t' entirc Fund for federal income tax purposes; ;
and that the Trustee shall not be required to filt a federal income tax return with respect to the Fund for any c'axable year ;
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SECTION 4. MINIMUM ANNUAL DEPOSIT In order to ensure that as of the To:cmination Date, (here-jnafter defined), the Fund will contain sufficient monies to meet l
estimated costs of Decommissioning, the following computations shall be used to determine the minimum aggregate annual amount .
(the " Annual Payment") which the District shall be required to :
deposit into the Fundt i A. First Year. The Annual Payment to be deposited in [
the Fund during the first twelve (12) month period from the Effectise Date (the "Fil a t Annual Payment") shall be that ;
amount as calculated pursuant to the formula set forth in '
Scciion 5 of the District's Fort Calhoun Station Unit No. 1 'I Decommissioning Funding Plan (the "1990 Plan"). {
On the Effoctive Date, the District shall deposit into, !
or assign to, the Fund all or that part of such monies and ,
f securities then held by the District in the District's pre- !
sently existing internal Fort calhoun Station Unit No. 1 f
Decommissioning Fund as required to meet the First Annual l Payment; which monies and securities are delineated in !
Exhibit "1" attached hereto. Should the funds held in the ;
existing internal Fort Calhoun Station Unit No. 1 i Decommissioning Fund be insufficient to meet the First Annual Payment, the District shall make up any such deficiency by an i additional deposit or deposits to the Fund during the twelve ,
(12) month period from and after the Effective Date of the j Agreement.
l B. Sul.dequent Years. The Annual Payment required to be deposited into the Fund by the District for the second and ;
all subsequent years during the term of the Agreement, shall he determined as set forth in the 1990 Plan. The Trustee :
t hereby acknowledges receipt of the 1990 Plan which is incorporated herein by this reference and made a part hereof. .
The District and the Trustee hereby acknowledge that the 1990 I
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.. Plan may be amended from time to time by the NRC, and that any 'and all such amendments to the 1990 Plan effectuated during the term hereof shall constitute a part of the Agreement. l SECTION 5. TRUSTEE DUTIES The Trustee hereby establishes the Fund and accepts the cash l and securities deposited therein pursuant to the Agreement. The l Trustee has the duty to execute the investment of any and all monies held hereunder in the following investments: l A. Any obligations of the United States Government having the backing of the full faith and credit of the United <
States of America; and/or B. Any and all investments permitted to be made by Public Power Districts under the laws of the State of !
Nebraska, as amended from time to time, (collectivaly the
" Permitted Invashents") . I The Trustee shal.'. exercise its investment duties pursuant to this section 5 only in accordance with the oral instructions ;
(followed by prompt written confirmation thereof) of the Distric .
The District hereby retains sole authority to determine which .
among the Permitted Investments the Trustee shall make, and the l District hereby agrees to be bound by the terms and conditions of the Agreement when making such investment detarminations. Not- l withstanding any of the foregoing to the contrary, the District may, in its sole discretion, and at any time during the term of l l the Agreement, delegate its power to direct the investment of the l Fund's assets to an inyt.stment manager. Any such investment ,
l manager to whom the District may delegate its investment powers 1
granted herein, call be required to execute and deliver to the l
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Trustee any and all documents as may be necessary to evidence said !
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l investment manager's agreement to be bound by all terms and condi-tions respecting the Permitted Investments contained in this Section 5 of the Agreement. In the event the Trustee follows all 7 such directions rnceived from the District or such investment <
manager appointed by the District, the Trustce shall not be liable i
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- ' l o i for any losses incurred by reason of any action taken pursuant to !
such directions provided such directions are in compliance with :
the requirements of this Section 5. l The maturity date of any Permitted Investment made pursuant !
to the Agreement shall not unreasonably extend beyond the Termi-nation Date (hereinafter defined) of the Agreement.
If the District shall so request the Trustee, in writing, l income received on the Permitted Investments shall be paid by the .
i Trurtee to the District as received (the " Paid Earnings"). All Paid Earnings shall be used by the District first in meeting its Annual Payment due to the Fund. Should the Paid Earnings exceed #
t the Annual Payment due for any year during the term of the Agreement, any such excess may be used by the District for valid corporate purposes.
The Trustee shall submit to the Distri.t s written annual l accounting of the Fund as of the end of each calendar year during j which the Agreement shall be in effect (the " Accounting"). The '
Accounting, which shall be delivered to the District no later than l January 31st of each year during the term hereof, shall include:
A. The balance of the Fund at the close of the last +
previous Accounting, and all amounts received from whatever i l source during the period covered by the Accounting; f B. A linting of all disbursements from the Fundt (
l- C. An inventory of all investments held by the Trustee l
as of the date of the Accounting; and ,
I D. Such other information as the District may, from l time to time, request be included in any such Accounting. :
A copy of all Accountings shall be submitted by the District -
to the NRC within thirty (30) days after rr.ceipt thereof by the !
District.
During the term of the Agre.:.tc.ent, the Trustee shall give the District (or the District's representatives) full access, during f l
Trustee's normal business hours, to all bvoks and records relating r to the Fund, and shall provide the District (or the District's !
l representatives) with all such information regarding the Fund as l
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l the District (or the District's representatives) may reasonably !
request.
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1 SECTION 6. DECOMMISSIONING EXPENSES l To enable the District to meet Decommissioning expenses as l they arise, the District is hereby empowered to make withdrawals l from the Fund upon the following terms and conditions: :
A. Four (4) times in every twelve (12) month period ,
during the term of the Agreement, the District may submit to the Trustee an itemized written request for Decommissioning funds.(the " Certification"). The certification shall contain the following information and be calculated according to the ;
following formula: !
- 1. a) The total amount of Decommissioning expenditures, if any, actually
- incurred by the District during the prior three (3) month ;
period, ;
b) minus the total aggregate amount received by the District, if any, out of ;
the Fund for Decommissioning i purposes during the prior three :
month period, EQUALS c) The total unfunded Decommissioning expenditures for the pricr three (3) month period (" Prior Unfunded ,
Expenditures") "$
PLUS I
In the event that, during any three (3) month period, the District shall have received monies out of the Fund for !
Decommissioning purposes in excess of Decommissioning expenses actually incurred during the same period, the Prior Unfunded ,
Expenditures would be a negative number thereby decreasing the !
Certification Amount received pursuant to any Certifice. tion j submitted to the Trustee at the end of any such three (3) month
! period.
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. 2. All expenditures for Decommissioning ,
purposes, if any, which the District l reasonably anticipates it shall j incur in the ensuing three (3) month i period (" Future Unfunded Expenditures") $ )
The net of Prior Unfunded Expenditures m A Future Unfunded j Expenditures shall constitute the "Certificaston Amount". I All Certifications shall be made by such Treasury Officer (s) as appointed by the District's Board of Directors (the " Treasury Officer") and shall be submitted to the !
Trustee in the form attached hereto as Exhibit "2". Provided l a certification is in compliance with the requirements of this section 6, the Trustee shall pay to the District, out of j the Fund, the Certification Amount on or before the date l specified by the District in any cuch Certification.
B. Notwithstanding any of the foregoing, should the l I
District be required to make any Decommissioning expenditure, which Decommissioning expenditure should exceed the sum of ,
i One Hundred Thousand Dollars ($100,000.00), and for which {
prospective provision was not made in any prior Certification i to the Trustee, the District may, at any time, submit a ;
"Special certification" to the Trustee in the same form re- !
quired for a Certification. Upon receipt of a Special Certi- !
fication, the Trustee shall pay to the District, out of the l Fund, the amount so requested by the Special Certification on f
or before the date specified by the District in any such !;
Special Certification.
No certification, except a Special Certification, shall be made to the Trustee prior to the first day of the fourth !
month from the Effective Date (the " Initial Certification").
All subsequent Certifications shall be made at three month intervals from the date of the Initial certification. ;
C. Notwithstanding anything in this Section 6 to the ,
contrary, in the event that the amortized book value of the Fund should exceed the total cost estimate of Decommissioning l (as determined pursuant to the NRC regulated formula set
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,, forth in the 1990 Plan as amended) for any year during the
, term of the Agreement, the District nay withdraw such excess funds from the corpus of the Fund to be used by the District L
for valid corporate purposes (a " General Withdrawal") . All requests for General Withdrawals: (1) shall be submitted to the Trustee in writing specifying the date by which any sums so requested must be received by the District; and (2) shall i be made by a Treasury officer. In no event shall the tctal amounts received by the District pursuant to General With-t drawals in any year during the term hereof exceed the differ-
- ence between the adjusted book value of the Fund and the cost t estimate of Decommissioning (as calculated pursuant to the NRC Regulated Formula set forth in the 1990 Plan, as amended) for the year in which such General Withdrawals are made.
D. The District shall submit copies of all Certifications, Special Certifications and General Withdrawals to the NRC. ,
SECTION 7. INDEPENDENT AUDIT To provide adequate assurance to the NRC that the District and the Fund are in compliance with all NRC Regulations respecting Decommissioning funds, the District shall cause to be conducted an annual audit of the Fund and all transactions relating thereto (the " Annual Audit"). The Annual Audit shall be conducted by either (1) the District's independent accountants (the
" District's Auditor"); or (2) the auditors of the Trustee (the
" Trustee's Auditor"). The District shall have sole discretion to determine whether the Annual Audit be conducted by the District's Auditor or the Trustee's Auditor; and all costs of each Annual Audit shall be borne by the District.
Each Annual Audit shall take place in the month immediately following each twelve (12) month period during which the Agreement shall be in effect. In the event the District shall direct the
' Trustee's Avuiter to conduct any Annual Audit, the Dietrict shall give the Tr.ustee's Auditor at least sixty (60) days' prior written l
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. notice thereof. Reports of all such Annual Audits shall be submitted to tLa NRC, the District and the Trustee within sixty l (60) days of the completion o !' cach such Annual Audit. Such f report shall contain, in addition to an analysis of the Fund and j all transactions relating thereto, a certification by the l 1 District's Auditor, or the Trustee's Auditor (whichever is f applicable), to the NRC that all payments from the Fund by the <
t Trustee to the District were made pursuant to the terms of !
I Sections ! and 6 herein. i SECTION 8. COMPENSATION OF TRUSTEE The District shall compensate the Trustee for its performance :
I of the services specified in the Agreement. During the first
( ) years of the Term of the Agreement, the Trustee shall be entitled to quarterly compensation in the amount of
$ . On a quarterly retrospective basis, the Trustee shall submit to the District an invoice for the following: (1) the ,
Trustee's quarterly compensation as set forth in this Section 8; dnd (2) all fair and reasonable administrative expenses incurred l by the Trustee during the previous quarter in connection with the [
t administration of the Fund. [
The District shall pay such quarterly invoices no later than i g' thirty (30) days following the end of the applicable calendar l l quarter or ten-(10) days following the receipt by the District of .
such quarterly invoices, whichever occurs later.
For all successive years that the Agreement shall be in effect, the Trustee shall receive compensation for its services i
hereunder in such amounts and upon such terms as shall be agreed In the event that the I upon by the parties hereto in writing.
parties are unable to agree upon the Trustee's compensation for any such successive year, the Trustee shall continue to receive t
the quarterly compensation stated in the preceding paragraph of ;
l this Section 8 for each such successive year. ;
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SECTION 9. LIMITED USE !
Except as provided in Sections 5 and 6 of the Agreement, all l monies, deposits, and securities held in the Fund pursuant to the l Agreement shall be used solely for the costs of Decommissioning. {
No principal or income payable to, or to become payable under, the Fund shall vest in the District for any other purposes except j those specifically authorized herein. No principal or income of !
the Fund shall be taken or reached by any legal or equitable !
process in satisfaction of any debt of the District.
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SECTION 10. TERMINATION ,
This Agreement shall terminate on such date as the Decommis- l sioning shall be completed (the " Termination Date"). ,
Prior to the Termination Date, the District shall submit its final Certification to the Trustee which shall disburse funds to !
cover final Decommissioning costs. On the Termination Date, the Trust herein established shall terminate, and any amounts remain- i ing in the Fund shall be returned to the District.
SECTION 11. STANDARD OF CARE The Trustee shall perform such duties as are specifically l set forth in the Agreement. The Trustee shall exercise its duties with the degree of carc and skill that a prudent person would exercise in the conduct of his own affairs.
No provision of the Agreement, however, shall be construed to
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relieve Trustee from liability for its own neglect or willful
! micconduct except that:
A. In the absence of bad faith on the part of the >
Trustee, the Trustee may conclusively rely, as to truth, authenticity and correctness, upon all documents and writings, including but not limited to all investment ,
instructions, Certifications, Special Certifications and General Withdrawals pursuant to Sections 5 and 6 of the ,
l Agreement, furnished to the Trustee by the District, or by any investment manager appointed under Section 5 of the
X ,7
- Agteement; and j B. The Trustee shall not be liable with respect to any j action taken or omitted to be taken by it in good faith at j
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j the direction of the District or any investment manager respecting any Permitted Investments allowed by the j
Agreement.
C. The Trustee shall have no responsibility to !
collect from the District any payments necessary to discharge any liabilities of the District established by j the NRC. 'l
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SECTION 12. MAINTENANCE OF OFFICE '
There shall at all times be a Trustee hereunder which shall l t
be a national organized, chartered and doing [
business by virtue of the laws of the United States of America and I authorized under such laws to exercise corporate trust powers, !
having combined capital and surplus and retained earnings of at !
least Fifty Million Dollars ($50,000,000.00), and subject to ;
supervision or examination by Federal authority. For purposes of !
determining whether such corporation meets the requirement of the preceding sentence, the combined' capital and surplus and retained j earnings of such corporation shall be deemed to be its combined i capital and surplus and retained earnings as set forth in its most recent published report of condition. If at any time the Trustee shall cease to be eligible in accordance with the provisions of this section 12, the District shall have the authority to request the immediate resignation of the Trustee in the manner and with the effect specified in Section 13 below.
SECTION 13. RESIGNATION OR REMOVAL OF TRUSTEE The Trustee may at any time resign by giving 90 days' prior written notice to the District and the NRC by certified mail of such resignation, provided that no such resignation shall taka effect until a successor Trustee is appointed. If a successor Trustee has not: (1) b6en so appointed; and (2) accepted such appointment within ninety (90) days after the District has
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i received Trustee's notice of resignation, the resigning Trustee ;
nay petition any court of competent jurisdiction for the appointment of a successor Trustee. Such court may thereupon, j after receiving such petition, appoint a succecsor Trustee. l Upon written notification by the District to the NRC, the ;
Trustee may be removed by the District, and a successor Trustee l appointed, upon the occurrence of any of the following l
A. The Trustee ceases to be eligible in accordance l with the provisions of Section 12 above and fails to resign I after request therefore by the District; [
B. The Trustee shall become incapable of acting or [
shall be adjudged bankrupt or insolvent, or a receiver shall i have been appointed of the Trustee, or of its property or j affairs for the purpose of rehabilitation, conservation or l
liquidation; or {
C. The District shall determine, in its sole [
discretion, that the Trustee should be removed. -
Should the Trustee resign or be removed for any reason, an f independent audit of the Fund, pursuant to the terms of Section 7 f herein, shall be conducted prior to the appointment of any l successor Trustee. Any resignation or removal of the Trontoo l
and appointment of a successor Trustee pursuant to the provis1or. ,
of this Section 13 shall become effective only upon acceptance of u appointment by the successor Trustee as provided in Section 14 below. t SECTION 14. SUCCESSOR TRUSTEE {
Any successor Trustee appointed as provided in Section 13 i herein shall execute, acknowledge and deliver to the District, the l NRC, and to its predecussor Trustee, an instrument accepting such f appointment hereunder und thereupon the resignation or removal of !
the predecessor Trustee shall become effective and such successor Truatae, without any further act, deed or conveyance, shall become vested with all the rights, powers, duties and obligations
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hereunder, with like effect as if ori<11nally named as Trustee !
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. herein. Notwithstanding anything in the foregoing sentence to the
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j contrary, on the request of the District, or on the request of the )
! successor Trustee, the Trustee ceasing to act hereunder shal)
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, execute and deliver all such instruments " transfer as may be !
necessary to transfer to such successor Trusteet (1) all assets of l
- the Fund; and (2) all the rights and powers of the Trustee ceasing
' to act under the Agreement. '
No successor Trustee shall accept appointment as provided in l this Section 14 unless at the time of such acceptance such j successor Trustee shall be eligible under the provisions of '!
Section 12 of the Agreement.
SECTION 15. DEFAULT BY DISTRICT.
In the event of the District's failure, whether by default or l inability, to exercise any of its rights or obligations under this I Agreement, the NRC may assume any and all of such rights and/or l obligations as the NRC may, in its sole discretion, deem necessary ,
or appropriato. If, pursuant to the terms of this Section 15, the !
NRC assumes any rights and/or obligations of the District f
hereunder, the NRC shall provide the Trustee with written notification of any such assumption. Thereafter, the Trustee shall make payments from the Fund, as the NRC shall direct in writing, solely fort 1) payment of the costs of the Decommissioning covered by this Agreement; and 11) payment of all other expenses incurred by the District, the NRC or any other person (s) in the discharge of any obligations under this l l Agreement. In addition, the Trustee shall refund to the District I any amounts as the NRC shall specify in writing, and upon such j refund, such amounts shall no longer constitute part of the Fund.
In the event it becomes necessary for the NRC to undertake ,
any rights or obligations of the District pursuant to this section ,
l 15, the Trustee shall not be liable with respect to any action taken or omitted to be taken by it in good faith at the direction r of the NRC.
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, SECTION 16. IRREVOCABLE TRUST.
The Fund herein established shall constitute an Irrevocable ;
Trust as required by NRC regulations, as amended from time to time, for the purposa of providing sufficient available funds to accomplish Decommissioning. The District shall have no rights to the monies held in the Fund except as provided in the Agreement.
Notwithstanding anyzhing herein to the contrary, however, should NRC regulations be amended, the effect of which would be W e the Fund is no longer. required, the District may termin A ce Agreement and revoke the Fund herein established and all ascets of I
the Fund as of the date of'any such termination shall be returned to the District. ;
SECTION 17. EFFECTIVE DATE This Agreement shall commence and beccme operative on the Ninetieth (90th) day after approval of the Agreement and the 1990 '
Plan by the NRC (the " Effective Date").
SECTION 13. SUCCESSORS AND ASSIGNS All the covenants and representations made by the District and contained in the Agreement shall bind and inure to the benefit l
of its successors and assigns, whether so expressed or not.
l SECTTON 19. SEVERABILITY If any provision of the Agreement should be determined by a court of competent jurisdiction to be contrary to law, such l provision shall be deemed and construed to be severable from the remaining provisions herein contained, and shall in no way affect the validity of the remaining provisions of the Agreement.
1 SECTION 20. ENTIRE AGREEMENT l The Agreement supersedes all prior negotiations, agreements and understandings among the parties with respect to the subject L matter hereof. To be effective, any amendment to, or modification of, the Agreement must De in writing, executed by the District and i the Trustee, and approved by the NRC.
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. SECTION 21. NOTICES Unless otherwise specified herein, all notices required to be ,
given by or to either party pursuant to the terms of the Agreement, including but not limited to , all Certifications, Special Certifications, General Withdrawals, invoices, reports, requests and communications, shall be sufficiently given only if in writing and if sent by first class United States mail, postage prepaid, by or to the appropriate addressee indicated below:
To the Trurtee:
To the NRC:
To the District:
With a Copy To:
The Division Manager - Finance Omaha Public Power District Stephen G. Olson, Esq.
444 South 16th Street Mall 500 Energy Plaza ,
Omaha, NE 68102 Omaha, NE 68102 Changes to the above addresses may be made from time to time by either of the above-listed entities, by notice to the other entity from the above-named representative of the respective e n .. .' or from any other duly authorized officer of that entity as certified by the Secretary of that entity.
1
( SECTION 22. HEADLINES l The headings of the Sections used in the Agreement are for l convenience only and shall not control or affect the U.aning cf any of the provisions theleof.
SECTION 23. REPRESENTATIONS A. The Trustee represents that it has the power, authority L and legal right t.o enter into and perform its obligations set forth in the Agreement and that the execution, delivery and per!. e ao hereof have been duly authorized and will not violate ar plicable law, regulation or by-law of the Trustee.
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O B. The District represents that it has the power, authority and legal right to enter into and perform its obligations set forth in the Agreemanc, and that the Agreement and the Fund herein established have been duly approved by the NRC as being in conformity with its requirements set forth in 10 C.F.R. 550.75, as amended from time to time. The District further represents that
'the execution, delivery and performance of the Agreement have been duly authorized and will not violate any applicable law, regulation or by-law of the District.
SECTION 24. COUNTERPARTS The Agreement may be executed in several counterparts, all or any of which shall be regarded for all purposes as an original and shall constitute and be one and the same Agreement.
SECTION 25. GOVERNING LAW The Agreement and any questions concerning its validity, construction or performance shall be governed by the laws of the State of Nebraska.
IN WITNESS WHEREOF, the parties hereto have each caused the Agreement to be executed by their duly authorized officers and their corporate seals to be hereunto affixed and attested as of the date first above written, but actually on ,
19 .
OMAHA PUBLIC POWER DISTRICT, a public corporation and political subdivision of the State of Nebraska ATTEST:
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EXHIBIT "1" THE FIRST ANNUAL PAYMENT
.^' 1. Cash: $
- 2. Securitios:
Description of Security Amortized book Cost
- a. $
- b. $
C. $
- d. $
- e. $
- f. $
g.- $
etc.
Subtotal $
FIRST ANNUAL PAYMENT $
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-Q EXHIDIT "2" ;
Check One:
l[l Ceritification i
l[l Special Certification CERTIFICATION (Insert name and address of Trustee) .
Attention: Trust Department i
In accordance with the terms of that certain Trust Agreement dated , I, , [ insert title officer) of Omaha Public Power District (the " District")
hereby request a withdrawal from the Omaha Public Power District Fort Calhoun Decommissioning External Trust Fund (the " Fund") as ;
follows: '
- 1. Total Decommissioning Expenditures incurred during the prior 3 month period: $
minus Aggregate amount of all withdrawals for Decommissioning during the prior 3 month period:
equals Prior Unfunded Expenditures: $
PLUS
- 2. Anticipated Decommissioning Expenditures for the period
, 19 , to
, 19 : $
EQUALS CERTIFICATIOh AMOUl(T $ ,
The Certification Amount shall be paid to the District via wire transfer to the District's account number at [ insert name of Depository Bank) on or before
, 19 .
The undersigned hereby certifies that the Certification Amount requested from the Fund shall be used solely for the
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- purpose of' meeting the District's expensea in connection with the Decommissioning of the District's Fort Calhoun Nuclear Power .
Generating Station Unit Number 1. The undersigned further certifies that a copy of this Certification has been submitted to
, the Nuclear Regulatory Commission.
DATED . :
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OMAHA PUBLIC POWER DISTRICT F.
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