ML20055H592
| ML20055H592 | |
| Person / Time | |
|---|---|
| Site: | McGuire  |
| Issue date: | 07/24/1990 |
| From: | Hauser D DUKE POWER CO. |
| To: | NRC OFFICE OF INFORMATION RESOURCES MANAGEMENT (IRM) |
| References | |
| NUDOCS 9007270039 | |
| Download: ML20055H592 (2) | |
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' Duke herr Company ga n g p ojj rn na. vin.
Charintte, NC2m2 h
j" DUKE POWER
. July 24, 1990 i
Document Control Desk U.S. Nuclear Regulatory Commission Washington, D.C.
20555 RE:
Decommissioning Financial Assurance Certification Report-for Duke Power Company, McGuire Nuclear Station, Unit 1, NRC Operating License NPF-9 NRC Docket No. 50-369
Dear Sir or Madam:
i The Nuclear Regulatory Commission's ("NRC") regulations require-that, on or before July 26, 1990, all production or utilization facility licensees submit to the NRC "information in the form of a report as described in 10 C.F.R. Section 50.75 indicating how
-reasonable assurance will be provided that funds will be a
available to decommission the facility."1/
The following i
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Decommissioning Financial Assurance Certification Report i
(" Report") addresses the Commission's decommissioning certification requirements applicable to Duke Power Company's McGuire Nuclear Station, Unit 1 (NRC Docket No. 50-369).
Attached to this letter are-(l) Exhibit A, which is a photocopy of~ Duke's executed Master Decommissioning Trust Agreement for all l
its: nuclear stations including McGuire Unit.1; (2) Exhibit B, Duke's Calculation of Minimum Assurance Amount; (3) Exhibit C, Duke's Calculation of the Amount to be-Externally Funded;-and (4) l Exhibit D which shows contributions to External Sinking Funds, i
Exhibits C and D are provided to the NRC for information purposes..
McGuire Unit 1 is a PWR that has a capacity of greater than 3400 MWt, for which NRC. operating license NPF-9 will continue to be in effect on July 27, 1990.
Duke has prepared a site-specific decommissioning cost estimate for McGuire Unit 1.
Using the site-specific estimate, Duke will make periodic contributions to 1
an. external trust fund which meets the criteria of 10 C.F.R.
Section 50.75(e)(1)(ii).
Specifically, Duke Power will contribute to the external trust the entire amount of the cost estimated in the site-specific study for decommissioning the irradiated' portion of the facility.
The total cost for this portion of the decommissioning process is estimated at
$147,362,000 (1990 dollars).
The total amount to be deposited,
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and the anticipated schedule of related expenditures, i= shown on Exhibit C.
gf 1/
10 C.F.R.
Section 50.33(k)(2).
9007270039 900724 PDR ADOCK 05000369 l
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The minimum-certification amount set out in 10 C.F.R. Section 50.75(c)(1), as escalated pursuant to 10 C.F.R. Section 50'.75(c)(2), is estimated at $137,340,000 (1990 dollars, except burial which was based on the most recent indices available)',
which is less than the site-specific cost estimate discussed-above.
Accordingly, pursuant to 10 C.F.R. Section 50.75, Duke Power'hereby certifies that it will'be providing financial assurance.for decommissioning in amounts greater than the decommissioning rule certification' amount.
Duke will make contributions to the external funds in the manner shown in i
' Exhibit D.
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With respect.to the commencement of contributions, Duke currently-utilizes a depreciation allowance to provide reserves for L
decommissioning.
Duke Power plans to file in 1991 general rate cases 1with the North Carolina Utilities Commission, the South l
Carolina Public Service Commission and the Federal Energy Regulatory Commission which will include a specific allowance'for decommissioning' funding using the external trust.
Duke anticipates that orders from the Commissions permitting rate collection for contributions to the external fund as required by the NRC will be issued in late 1991.
As noted, a copy of the
("T executed trust agreement is provided herewith as Exhibit A.
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In Summary,-this letter certifies that Duke Power will undertake-l funding accumulating-the necessary funds to cover-the ostimated
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L costs of decommicsioning McGuire Unit 1.
If there are any questions, please contact David L. Hauser,' Controller, 422-S.
Church Street, Charlotte, North Carolina 28242, (704) 373-5963.
Sin erely, o f L / a,.e -
David L. Hauser
' Controller Attachments j
cc:
Mr. Darl Hood - w/o Attachments L
Robert S. Wood - w/o Attachments L
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