ML20044D802
| ML20044D802 | |
| Person / Time | |
|---|---|
| Site: | Cooper  |
| Issue date: | 05/14/1993 |
| From: | Horn G NEBRASKA PUBLIC POWER DISTRICT |
| To: | NRC OFFICE OF INFORMATION RESOURCES MANAGEMENT (IRM) |
| References | |
| NLS930613, NUDOCS 9305200313 | |
| Download: ML20044D802 (8) | |
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GENERAL OFFICE h'
P O BOX 499. COLUMBUS, NEBRASKA 6B602-0499 g
"j Nebraska Public Power District
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NSD930613 May 14, 1993 U.S. Nuclear Regulatory Commission Attention:
Document Control Desk Washington, DC 20555 Gentlemen:
Subject:
Annual Audit of the Decommissioning Trust Fund Cooper Nuclear Station NRC Docket No. 50-298, DPR-46
Reference:
Letter from George A. Trevors (NPPD) to U.S.
Nuclear Regulatory Commission (NRC) dated June 13,1990, " Decommissioning Funding Plan" Nebraska Public Power District submitted the Decommissioning Funding Plan for Cooper Nuclear Station (CNS) in the above reference pursuant to 10CFR50.75. This submittal contained, in part, a trust fund agreement the District has entered into in order to ensure adequate funds will be available for the decommissioning of CNS.
The NPPD Decommissioning Trust Fund Agreement requires an annual independent audit to be performed for each calendar year.
Enclosed, is a copy of the independent audit of the Decommissioning Trust Fund for the year ending December 31, 1992. This report includes the following information:
1)
Report of independent accountants.
2)
Statement of assets and fund balance as of December 31, 1992 and 1991.
3)
Statement of changes in the fund balance for the years ending December 31, 1992 and 1991.
4)
Notes - Description of Trust Fund and basis of accounting.
5)
Schedule of investments (list of investments).
If you have any questions, please call.
Sin ere
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G. R Horn Nhelear Power Group Manager GRH/dnm Attachment cc:
Regional Administrator USNRC - Region IV NRC Resident Inspector Cooper Nuclear Station o
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l NEBRASKA PUBLIC POWER DISTRICT NUCLEAR FACILITY DECOMMISSIONING TRUST FUND FINANCIAL STATEMENTS for the years ended December 31, 1992 and 1991 i
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&Ly3 rand REPORT OF INDEPENDENT ACCOUNTANTS To the Board of Directors Nebraska Public Power District We have audited tha accompanying statements of assets and fund balance - modified cash basis of Nebraska Public Power District Nuclear Facility Decommissioning Trust Fund as of December 31, 1992 and 1991, and the related statements of changes in fund balance - modified cash basis for the years then ended.
These financial statements are the responsibility of the Trust's management.
Our responsibility is to express an opinion on these financial statements based on our audit.
We conducted our audits in accordance with generally accepted auditing standards.
Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement.
An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements.
An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation.
We believe that our audits provide a reasonable basis for our opinion.
As described in Note 2, these financial statements were prepared on the modified cash basis of accounting, which is a
comprehensive basis of accounting other than generally accepted i
accounting principles.
In our opinion, the financial statements referred to above present fairly, in all material respects, the assets and fund balance of Nebraska Public Power District Nuclear Facility Decommissioning Trust Fund at December 31, 1992 and 1991, and its changes in fund balance for the years then ended, on the basis of accounting described in Note 2.
Our audit was conducted for the purpose of forming an opinion on the basic financial statements taken as a whole.
The schedule of
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investments at December 31, 1992 is presented for purposes of i
additional analysis and is not a required part of the basic 1
financial statements.
Such information has been subjected to the i
l auditing procedures applied in the audit of the basic financial statements and, in our opinion, is fairly stated in all material respects in relation to the basic financial statements taken as a whole.
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R Omaha, Nebraska April 19, 1993 I w-
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l NEBRASKA PUBLIC POWER DISTRICT NUCLEAR FACILITY DECOMMISSIONING TRUST FUND STATEMENTS OF ASSETS AND FUND BALANCE as of December 31, 1992 and 1991 I
t 1992 1991 Investments, at market value, cost of $20,311,374 in 1992 and
$14,365,992 in 1991:
Cash equivalents S 1,176,944 S
314,976 s
l Government and government-guaranteed securities 19,820,650 14,900,650
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Total assets
$20,997,594
$15.215,626 i
l Fund balance
$20,997,594
$15,215,626 1
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i The accompanying notes are an integral part of the financial statements.,
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NEBRASKA PUBLIC POWER DISTRICT
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NUCLEAR FACILITY DECOMMISSIONING TRUST FUND STATEMENTS OF CHANGES IN FUND BALANCE for the years ended December 31, 1992 and 1991 1992 1991 Contributions:
Nebracha Public Power District
$ 4,783,400
$ 6,328,600 Investment income:
Interest 1,165,105 655,083 Increase (decrease) in unrealized appreciation of investments held at year end (163,414) 783,994 Total additions 5.785,091 7,767,677 Trustee fees 1,325 Miscellaneous transaction expenses 3,123 971 1
Total deductions 3.123 2,296 i
Net increase in fund balance 5,781,968 7,765,381 Fund balance:
Beginning of year 15.215,626 7.450,245 l
End of year
$20,997.594
$15.215,626
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l The accompanying notes are an integral part of the financial statements.
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NEBRASKA PUBLIC POWER DISTRICT NUCLEAR FACILITY DECOMMISSIONING TRUST FUND NOTES TO FINANCIAL STATEMENTS 1.
Description of Trust Fund:
(a)
Fund Reauirement:
The Nuclear Regulatory Commission (NRC) published in the Federal Register amendments to 10 CFR Part 50 (53 FR 24018) dated June 27, 1988, a final rule specifying the requirements for the decommissioning of electric utility nuclear generating facilities.
Contained in this rule is a requirement to submit a decommissioning funding plan to the NRC no later than July 26, 1990.
As a result of this requirement, the Nebraska Public Power District (District) prepared and submitted a
Decommissioning Funding Plan (Plan) to the NRC for funding the decommissioning of the District's Cooper Nuclear Station (CNS),
an 800 MW nuclear generating plant.
The purpose of the Plan is to provide information on how reasonable assurance will be provided that funds will be available to decommission CNS.
For purposes of this Plan, decommissioning of CNS is assumed to begin at the end of the existing Operating License.
The current Operating License, which was issued in July 1974, is valid through January 18, 2014.
The Plan indicates that the possibility exists that CNS may be decommissioned earlier because of contractual relationships or other reasons; in the event a decision is made for an early decommissioning of CNS, a new funding plan will be developed.
(b)
Fund Establishment and Trustee Aareement:
The Plan required that the District select a method of providing reasonable assurance that funds would be available for decommissioning CNS.
The District chose the external trust method to provide such assurance.
In 2
accordance with the Plan, an external trust fund was established for the purpose of accumulating monies which will be used for subsequent decommissioning costs related to CNS.
A separate agreement entitled the Decommissioning Trust Fund Agreement (Agreement) was executed by the District and the Trustee, who is FirsTier Bank, N.A.,
of Lincoln, Nebraska.
The Agreement provides specific guidelines regarding Trust Fund transactions and administration of the Trust Fund.
NEBRASKA PUBLIC POWER DISTRICT NUCLEAR FACILITY DECOMMISSIONING TRUST FUND NOTES TO FINANCIAL STATEMENTS, CONTINUED 1.
Description of Trust Fund. Continued:
(c)
Collection of Decommissionino Costs and Subseauent Deposit to the Decommissionina Trust Fund:
Estimated decommissioning costs are collected by the District through billings to Nuclear Facility participants.
Each month as revenues are collected, the District transfers monies to the District's internal 1
Decommissioning Fund account.
The mcnics are held in the District's Decommissioning Fund account until such i
time that a transfer is required to be made to the Decommissioning Trust Fund.
The transfer to the Decommissioning Trust Fund is calculated using the j
estimated minimum costs of labor, energy costs and waste burial over the remaining operating life of CNS as t
stipulated in the NRC regulations and in the Decommissioning Funding Plan submitted to the NRC.
The transfer is to be made no later than June 1 following each year end.
Deposits in the amount of $4,783,400 and
$6,328,600 were made for the years 1992 and 1991, respectively.
Any monies in excess of the required transfer amount are retained in the District's Decommissioning Fund account.
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2.
Basis of Accountina:
l With the exception of the unrealized increase / decrease in market value of investments held at year end, the financial l
statements of the Trust Fund are prepared on the cash basis i
of accounting.
Investments of the Trust Fund are recorded at market value as determined by the average of bid-and-asced quotations of national markets.
District contributions are recorded when deposited into the Trust Fund.
Interest income is recorded when received.
Trustee fees and miscellaneous expenses are recorded when paid.
3.
Trustee Fees:
Beginning July 1, 1991, the District began paying all trustee fees for the Trust Fund.
Fees of $4,700 and $1,856 were paid by the District for the Trust Fund for the years ended December 31, 1992 and 1991, respectively.
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kEBRASKA PusitC POWER DIS 1RICT NUCLEAR TACILITY DECD*WISSIONING TRUST FUND SCHEDULE OF IvvESTMENTS J
December 31, 1992
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Narber ut Shares or Market
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Price Principal Value
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I 12/31/9?
Amount Cost 12/31/9?
Cash Ecuivelents Federated Trust for U.S. Treasury Obliostions, 5 1.176.944 5 1.176.944 5 1.176.944 3.35% as of 12/31/92 i
1.176.944 1.176.944 1.176.944 Total cash equivalents Bonds, wetes and Bills f ederal National Mortgage Association, dated 06/11/90 - 06/12/95, 8.85%
102.125 3,000,000 3,000,000 3,063,750 United States Treasury Note, dated 02/15/90 - 02/15/2000, 8.5%
111.063 3,000,000 3,025,312 3,331,890 United States Treasury Note, dated 11/03/B6 - 10/15/93, 7.125%
102.625 2,000,000 1,998,750 2,052,500 United States treasury Note, dated 04/30/91 - 04/30/96, 7.625%
106.563 3,000,000 2,984.063 3,196,890 United States Treasury Note, dated 10/15/91 - 10/15/98, 7.125%
103.906 3,000,000 3,042,891 3,117,180 l
i United States Treasury Note, dated 7/31/92 - 7/31/97, 5.5%
98.188 2,000,000 1,994,820 1,963,760 j
United States Treasury Note, dated 12/15/92 - 4/15/99, 7.0%
103.156 3.000.000
- 3. 0B8.594 3.094.680 Total bonds, notes and bills 19.000.000 19.134.430 19.8?0.f50 I
Total investments 520.176.944 520,311.374 520.997.504 l
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