ML20086B983
| ML20086B983 | |
| Person / Time | |
|---|---|
| Site: | Cooper  |
| Issue date: | 06/30/1995 |
| From: | Mueller J NEBRASKA PUBLIC POWER DISTRICT |
| To: | NRC OFFICE OF INFORMATION RESOURCES MANAGEMENT (IRM) |
| References | |
| NLS950145, NUDOCS 9507060217 | |
| Download: ML20086B983 (6) | |
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4 June 30,1995 U.S. Nuclear Regulatory Commission Attention: Document Control Desk Washington, DC 20555 Gentlemen:
Subject:
Sixth Year Deposit to External Decommissioning Fund Cooper Nuclear Station NRC Docket No. 50-298, DPR-46 In accordance with the requirements of 10CFR50.75 and Sections 2.02(b), and 2.03(c) of the Cooper Nuclear Station (CNS) Decommissioning Funding Plan, submitted June 13,1990, the Nebraska Public Power District (District) hereby submits its annual update of the decommissioning estimate for CNS. The District has determined that the 1994 (sixth year) deposit to the external trust fund is
$17,862,900. The attachment documents the calculation for the $17,862,900 deposit requirement.
The District hereby certifies that the minimum requirement has been deposited in the external trust fand for purposes of decommissioning CNS. The attachment also provides the methodology for the determination of the 1994 contribution and the basis to be utilized for the determination of future contributions.
If you have any questions regarding the CNS Decommissioning Funding Plan, please contact T. E.
Trouba, Financial Planning Manager at (402) 563-5589.
Sincerely, J. I. Mueller
' e Manager Cooper Nuclear Station JHM/tja:4x-6 Attachment cc:
Regional Administrator USNRC - Region IV NRC Resident Inspector Cooper Nuclear Station NPG Distribution w/o att.
R. L. Gangel w/att.
J. R. McPhail w/att.
R. D. Asche w/att.
D. J. Schaecher w/att.
T. E. T.rouba w/att.
9507060217 950630
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-e Cooper Nuclear Station
- Decommissioning Funding Plan 1
- December 31,1994' Section 1 - Introduction
. Nebraska Public Power District (the " District") owns and ~ operates' Cooper Nuclear Station (the "CNS"), which is a nominally rated 800 MW nuclear generating plant located on l
a site on the west bank of the Missouri River approximately 65 miles south of Omaha. CNS contains a boiling water reactor (the "BWR") which is designed to supply steam to a turbine-generator to produce a gross electrical output of approximately 800 MW under normal l
operating conditions. In July,1974, the District received from the Nuclear Regulatory i
Commission (the "NRC") an Operating Ucense to operate CNS at 100% reactor core power.
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.The Operating Ucense authorizes operations of CNS at reactor core power levels not in excess of 2,381 MW (thermal). The original Operating Ucense was valid through June 4, 1
2008. The District submitted a request to the NRC for an extension of the Operating
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Ucense to recover the construction period. - In July 1991, the NRC approved such request and granted a license amendment to extend the Operating Ucense expiration date until l
January 18,2014.
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t lection 2 - NRC Financial Reoulation for Decommissionino i
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' NRC regulation 10 CFR 50, dated June 27,1988, [53 Fed. Reg. 24049], sets forth the financial criteria for decommissioning licensed nuclear facilities. This criteria has been addressed in this Decommissioning I unding Plan of the District (the " Plan"). The NRC defines Decommission as: "to remove (as a facility) safely from service and reduce resid al u
radioactivity to a level that permits release of the property for unrestricted use and i
termination of license."
Section 3 - NRC Decommissionino Estimate - Coooer Nuclear Station I
NRC regulation 10 CFR 50.75(c) dated June 27,1988, discusses the minimum
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L amounts required to demonstrate reasonable assurance of funds available for i
decommissioning, by reactor type and power level.
fLrgil, a Minimum Decommissioning Amount for decommissioning licensed facilities is calculated based on a boiling water reactor ("BWR") and on the facility's megawatt thermal rating ("MWt"). CNS.is a BWR of 2,381 MWt rating. The computation for the Minimum F
Decommissioning Amount in 1986 dollars for CNS is as follows:
($104 million + $9000 P) where P equals the reactor's MWt rating
$104 million + $9000 (2,381 MWt)
(
$104 million + $21.4 million = $125.4 million i
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Second. the Minimum Decommissioning Amount is to be adjusted annually using the following formula:
(Minimum Decommissioning Amount) x (.65L +.13E +.228)
The "L", "E" and "B" in the formula are escalation factors for Labor, Energy and Waste Burial, respectively. Further, the Energy Index is composed of two factors - Industrial Power & Ught Fuel Oils weighted as indicated. For CNS, the January 1986 Minimum Decommissioning Amount of $125.4 mi!! ion is escalated as follows:
Indices Labor (Nota: Base Year Index is 1989)
U.S. Department of Labor - Bureau of Labor Statistics Employment Cost index Private Nonfarm Workers Compensation (Midwest Region)
December,1994/ January,1986 Labor = 125.0/88.7 = 1.409 Eneroy (Note: Base Year index is 1982)
U.S. Department of Labor - Bureau of Labor Statistics Froducer Price index Industrial Electric Power (West North Central Region)
December, 1994 = 127.5 and January, 1986 = 114.2 Light Fuel Oils December, 1994 = 55.0 and January, 1986 = 82.0 Application of the formula for BWR's published in Draft Regulatory Guide DG-1003 (Assuring the Availability of Funds for Decommissioning Nuclear Reactors) results in:
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Energy = [(127.5/114.2) x.23] + [(55.0/82.0) x.77]
Energy =.2568 +.5165 Energy =.7733 Waste Burial NUREG-1307 Rev 3 (most current available index as of 5-4-95)
South Carolina Index January,1993/ January,1986 9.434/1.000 = 9.434 During 1994, the District utilized the Barnwell, South Carolina burial site through 6/30/94 and onsite storage for the balance of the year.
The escalation values for Labor, Energy and Waste Burial are then incorporated into the given formula for the Escalation Factor.
Escalation Factor = (.65 x Labor +.13 x Energy +.22 x Waste Burial)
=.65(1.409) +.13(.7733) +.22(9.434)
=.916 +.101 + 2.075
= 3.092 2
c Re Mirnru.2m Decommissioning Amount for CNS in 1986 dollars is $125.4 mi!! ion as determined earlier in this section. Application of the above Escalation Factor results in the following calculation:
1986 Minirnum Decommissioning Amount x 1994 Escalation Factor = 1994 Minimum Decommissioning Amount
$125.4 million x 3.092 = $387.7 million Third. the NRC regulation 10 CFR 50.75(e) dated June 27,1988, [53 Fed. Reg.
24050] states that a method of providing for financial assurance must be selected. The District has selected the external trust method to provide financial assurance.
Additionally, the District shall, in accordance with changes to regulation 10 CFR 50.75(f) [53 Fed. Reg. 24051], dated June 27,1988, at or about 5 years prior to the projected end of operation, submit a preliminary site specific decommissioning plan.
Section 4 - Annual Deposits to the Decommissionino Trust Fund A Trust Agreement, as attached to this Plan, has been created to comply with the new NRC regulation. The Trust Agreement establishes an external trust fund (the* Fund") for the sole purpose of accumulating monies for the estimated cost of Decommissioning CNS.
Annual deposits to the Fund will be calculated as follows:
First Year The District's Minimum Decommissioning Costs in the first year as determined using the herein defined NRC regulated formula divided by 19 (the years of remaining Operating Ucense life and the May 31,1990, deposit to the FirsTier Bank, N.A., Uncoln, Trustee, at the time of this Plan). For purposes of this Plan, Decommissioning of CNS was assumed to begin at the end of the original Operating Ucense (June 4,2008). However, 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.
NRC 1989 Minimum Decommissioning Amount /ycar:: remaining CNS Operating Ucense
$134.1 mi!! ion /19 years = $7.05789
$7.058 mi!! ion (1990 deposit)
The District deposited the $7.058 million with the Trustee on May 31,1990.
3
Subseauent Years The annual deposit to the Fund by the District for the second and subsequent years during the term of the Trust Agreement is calculated as follows:
A.
Adjusted Minimum Decommissioning Amount as determined by the NRC regulation 10 CFR 50.75(c)
$387,700,000 B.
Less the current balance in the Fund (as of 3/31/95)
$ 48,305,725 C.
Equals the uncollected Estimated Minimum Decommissioning Amount (A - B)
$339,394,275 D.
CNS Remaining Years of Operating Life '"
19 E.
Present Years Anraual Payment (C / D)
S 17,862,900 "Yhe District submitted a request to the NRC for an extension of the Operating Ucenso to recover the construction period. In July 1991, the NRC approved such request and granted a licenso amendment to extend the Operating Uconso expiration date unta January 18,2014.
The District has limited the investment and reinvestment of Decommissioning Trust Funds to the following: (1) Direct obligation of or obligations guaranteed by the United States of America; (2) bonds, debentures, or notes issued by any of the following federal agencies: Federal Intermediate Credit Banks, Federal Home Loan Bank System, Federal National Mortgage Association, or Federal Land Bank; (3) receipts of interest and cash deposits shall be invested on a short-term basis in cash equivalents, short-term investments or mutual funds as the investment manager determines appropriate; and (4) investments shall have a maturity of less than or equal to 10 years, with the portfolio having an average maturity of 5 to 6 years.
4
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LIST OF NRC COMMITMENTS ATTACHMENT 3 Correspondence No:
NLS950145 The following table identifies those actions committed to by the District in this document. Any other actions discussed in the submittal represent intended or planned actions by the District. They are described to the NRC for the NRC's information and are not regulatory commitments. Please notify the Licensing Maneger at Cooper Nuclear Station of any questions regarding this document or any associated regulatory commitments.
COMMITTED DATE COMMITMENT OR OUTAGE "NONE" i
l PROCEDURE NUMBER 0.42 l
REVISION NUMBER 0 l
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