ML20069N331
| ML20069N331 | |
| Person / Time | |
|---|---|
| Site: | Cooper  |
| Issue date: | 06/15/1994 |
| From: | Horn G NEBRASKA PUBLIC POWER DISTRICT |
| To: | NRC OFFICE OF INFORMATION RESOURCES MANAGEMENT (IRM) |
| References | |
| NSD940540, NUDOCS 9406220345 | |
| Download: ML20069N331 (9) | |
Text
4 gne COOPER NUCLEAR STATON
.[q l
P.O. BOX 98. BROWNVILLE NEBRASKA 68321 f@M'N] Nebraska Public Power District
"'i'd%N""
m..a NSD940540 June 15,1994 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. 'l revors (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 annualindependent 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, 1993. This report includes the following information:
1)
Report of independent accountants.
2)
Statement of assets and fund balance as of December 31,1993 and 1992.
3)
Statement of changes in the fund balance for the years ending December 31,1993 and 1992.
4)
Notes - Description of Trust Fund and basis of accounting.
5)
Schedule of investments (list of investments).
If you have any questions, please c;dl.
Sine cly, u f Ow
(>.
iorn Nuch r Power Group Manager GRH/dnm Attaeltment
/
/
g
.,n 9406220345 940615
//
FDR ADOD: 05000290 l[/
PDR I
mmy q-crmwmm 2
y pgmnmyngm.,.,,ygg,.r.m.,9 wmaanum.a n
w up amwwum'-
U.S. Nuclear Regulatory Commission June.15,1994 i
Page 2 of 2 cc:
Regional Administrator USNRC - Region IV l
NRC Resident inspector Cooper Nuclear Station i
1
I I
I i
NEBRASKA PUBLIC POWER DISTRICT i
6 NUCLEAR FACILITY DECOMMISSIONING TRUST FUND FINANCIAL STATEMENTS for the years ended December 31, 1993 and 1992
certified pubhc accountants Coo 3ers
&Ly3ranc REPORT OF INDEPENDENT ACCOUNTANTS To the Board of Directors Nebraska Public Power District We have audited the accompanying statements of assets and fund balance - modified cash basis of Nebraska Public Power District Nuclear Facility Decommissioning Trust Fund as of December 31, 1993 and 1992, 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 anducted 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 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, 1993 and 1992, 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 investments at December 31, 1993 is presented for purposes of additional analysis and is not a required part of the basic financial statements.
Such information has been subjected to the 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 ihole.
l h
April 18, 1994 i
1 1
NEBRASKA PUBLIC POWER DISTRICT NUCLEAR FACILITY DECOMMISSIONING TRUST FUND STATEMENTS OF ASSETS AND FU'dD BALANCE - MODIFIED CASH BASIS as of Decoraber 31, 1993 and 1992 1993 1992 Investments, at market value, cost of $28,295,218 in 1993 and
$20,311,374 in 1992:
Cash equivalents 856,257
$ 1,176,944 Government and government-guaranteed securities 28,632,330 19,820,650 Total assets
$29,488,587
$20,997,594 Fund balance
$29,488,587
$20,997,594 The accompanying notes are an integral part of the financial statements.
2 1
)
NEBRASKA PUBLIC POWER DISTRICT NUCLEAR FACILITY DECOMMISSIONING TRUST FUND STATEMENTS OF CHANGES IN FUND BALANCE - MODIFIED CASH BASIS for the years ended December 31, 1993 and 1992 119_;}.
1992 Contributions:
Nebraska Public Power District S 6,537,600
$ 4,783,400 Investment income:
Interest 1,449,551 1,165,105 Gain on sale of investments 1,250 Increase (decrease) in unrealized appreciation of investments held at year end 507.149 (163,414)
Total additions 8.495.550 5.785.091 Miscellaneous transaction expenses 4.557 3,123 j
Net increase in fund balance 8,490,993 5,781,968 Fund balance:
Beginning of year 20.997,594 15,215,626 End of year
$29,488,587
$20,997,594 The accompanying notes are an integral part of the financial statements.
3
r NEBRASKA PUBLIC POWER DISTRICT NUCLEAR FACILITY DECOMMISSIONING TRUST FUND NOTES TO FINANCIAL STATEMENTS 1.
Descrintion 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 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.
4 4
NEBRASKA PUBLIC POWER DISTRICT NUCLEAR FACILITY DECOMMISSIONING TRUST FUND NOTES TO FINANCIAL STATEMENTS, CONTINUED 1.
Description of Trust Fund. Continued:
(c)
Collection of Decommissionina 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 Decommissioning Fund account. The monies are held in the District's Decommissioning Fund account until such 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 estimated minimum costs of labor, energy costs and waste burial over the remaining operating life of CNS as 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 $6,537,600 and
$4,783,400 were made for the years 1993 and 1992, respectively.
Any monies in excess of the required transfer amount are retained in the District's Decommissioning Fund account.
2.
Basis of Accountina:
With the exception of the unrealized increase / decrease in market value of investments held at year end, the financial statements of the Trust Fund are prepared on the cash basis of accounting.
Investments of the Trust Fund are recorded at market value as determined by the average of bid-and-asked quotations of national markets.
District contributions are recorded when deposited into the Trust Fund.
Interest income is recorded when received. Miscellaneous transaction expenses are recorded when paid.
3.
Trustee Fees:
l Beginning July 1, 1991, the District began paying all trustee fees for the Trust Fund.
Fees of $6,938 and $4,700 were paid by the District for the Trust Fund for the years ended December 31, 1993 and 1992, respectively.
1 l
5 i
m-t NEBRASKA PUBLIC POWER DISTRICT NUCLEAR FACILITY DECOMMIS$10NING TRUST FUND SCHEDULE OF INVESTMENTS Decenter 31, 1993 Ntster of Shares or Market Price Principal Value 12/31/93 Amomt cost 12/31/93 Cash Eauivalents Federated Trust f or U.S. Treasury Obligations, 3.0% as of 12/31/93 N/A S
856.257 s 856.2E 5 856.257 Total casn equivalents 856.257 B56.257 856.257 g.onds. Notes end sitts United States Treasury Note, dated 02/15/90 02/15/2000, 8.5%
116.032 3,000,000 3,025,312 3,480,960 United States Treasury Note, dated 04/30/91 - 04/30/96, 7.625%
107.094 3,000,000 2,984,063 3,212,820 United States Treasury Note, dated 10/15/91 - 10/15/98, 7.125%
108.188 3,000,000 3,042,891 3,245,640 United States Treasury Note, dated 7/31/92 - 7/31/97, 5.5%
102.360 3,000,000 3,016,851 3,070,800 United States Treasury Note, dated 04/15/92 - 4/15/99, 7.0%
107.907 3,000,000 3,088,594 3,237,210 United States Treasury Note, dated 11/16/92 - 11/15/95, 5.125%
101.703 3,000,000 3,055,781 3,051,090 United States Treasury Note, dated 8/15/92 - 8/15/2002, 6.375%
104.313 3,000,000 3,060,469 3,129,390 United States Treasury Note, dated 2/15/93 - 2/15/2003, 6.25%
103.407 6.000.000 6.165,000 6.204.420 Total bonds, notes s w bitts 27.000.000 27.438.961 28.632.330 Total investments
$27.856.257
$28.295.218
$?9.488.587 6
e - _____-__ __ _ _ _ _ _ _ - _ _ _ _ _
-