ML20097D950
| ML20097D950 | |
| Person / Time | |
|---|---|
| Site: | Cooper  |
| Issue date: | 06/01/1992 |
| From: | Horn G NEBRASKA PUBLIC POWER DISTRICT |
| To: | NRC OFFICE OF INFORMATION RESOURCES MANAGEMENT (IRM) |
| References | |
| NSD920578, NUDOCS 9206110224 | |
| Download: ML20097D950 (5) | |
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NSD920578 June 1, 1992 U.S. Nuclear Regulatory Commission Attention:
Document Control Desk Washingten, DC 20555 Gentlemen:
Subject:
Third Year Deposit to External Decomatasioning Fund Cooper Nuclear Station NRC Docket No. 50 298 DPR-46 The Nucle ar Regul.atory Commission (the "NRC") published, in the Federal Register to 10 CPR Part 50 (53 FR 24018) dated June 27, 1988, a final rule specifying the requirements for the decommissioning of electrical utility nuclear generating facilities.
The Nebraska Public Power District (the " District") has submitted its Deco:amissioriing Funding Plan (the " Plan"), associated Trust Agreement, and Agreement for Inustment Management Services on June 13, 1990. These documente satisfy the requirements of NRC Regulation 16 CFR 50.75 dated June 27, 1988.
The District has determined that the 1991 (t.hird year) deposit to the external trust fur.d is $4,783,400.
The attacN d Plan documents the calculation for the
$4,783,400 deposit requirement.
The District hereby certifies that the 1991 minimum requirement has been deposited in the external trust fund for purposes of decommissioning of Cooper Nuc1 car Station (CNS).
The attached document provides the methodology for the determination of the 1991 contribution and the basis, to be utilized. for the determination of future contributions.
If you hase any questf ors regarding the CNS Decommissioning Funding Plan, please contact T.
E. Trouba, Financial Planning and Budget Manager at (402) 563-5589.
Sin erely, h~
G /f Horn Nu't ear Power Group Manager i
GRH/dnm Attachment ec:
Regioaal Administrator USNRC - Region IV NRC Resident Inspector Cooper Nuclear Station o'0 q ',
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Decommissioning Funding Plan Sqction 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 o 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 cteam to a turbine-generator to produce a gross electrical output of apprcximately 800 MW under normal operating conditions, in July,1974, the District received from the Nuclear Regulatory Commission (the 'NRC") an Operating Ucense to operate CNS at 100% reactor core power.
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, 2008. The District submitted a request to the NRC for an extension of the Operating License 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 January 18,2014.
.Eqction 2 - NRC Financial Regulation for Decommissioning 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 Funding Plan of the District (the " Plan"). The NRC defines Decommission as: "to remove (as a facility) safely from service and reduce residual radioactivity to a level that permits release of the property for unrestricted use and termination of license."
Section 3 NRC DecommissioDing Estimate - Coooer Nuclear Station NRC regulation 10 CFR 50.75(c) dated June 27,1988, discusses the minimum amounts required to demonstrate reasonable assurance of funds available for decommissioning, by reactor type and power level, EtrEt, a Minimum Decommissioning Amount for decommissioning licensed facilities is r
+
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 Decommissioning Amount in 1986 do!!ars for CNS is as follows:
($104 million + $9000 P) where P equals the reactor's MWt rating
$104 million + S9000 (2,381 MWt)
$104 million + $21.4 million = $125.4 million 1
--.w
4 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 escalatica factors for Labor, Energy and Waste Gurial, respectively. Further, the Energy index is composed of two factors - Industrial Power & Light Fuel Oils weighted as Indicated. For CNS, the January 1986 Minimum Decommissioning Amount of $125.4 million is escalated as follows:
Indices Lebor U.S. Departm6 tit of Labor - Bureau of Labor Statistics Employment Cost Index Privain Nonfarm Workers Cornpeitsation (Midwest Region)
December,1991/ January,1986 Labor = 112.2/125.0 =.8976 Energy U.S. Department of Labor - Bureau of Labor Statistics Producer Price Index industrial Power (West North Central Region) December, 1991 = 125.3 and January, 1986 = 115.65 Light Fuel Oils December, 1991 = 62.2 and January,1986 = S2.0 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:
Er:ergy = [(125.3/115.65) x.23] + [(62.2/82.0) x.77]
Energy =.2492 +.5841 Energy =.8333 Viaste Burial NUREG 1307 Rev 1 (most current available index as of 5192)
Washington Index January,1991/ January,1986 1.178/1.000 = 1.178 Nevada Index January,1991/ January,1986 1.288/1.000 = 1.288 South Carolina Index January,1991/ January,1986 2.331/1.000 = 2.331 During the last three years, the District has utilized the three referenced burial sites.
The percentage of waste shipped by volume to each site is as follows:
Richland, Washington 97.2%
Deatty, Nevada 2.0%
Barnwell, South Carolina
.8%
.199.0,6 2
A composite escalation factor based on prior waste shipments is developed as foliows:
Escalation
% of Volume x Index
= Factor Richland, Washington (97.2%) x - (1.178) 1.145
=
Beatty, Nevada
( 2.0%) x (1.288)
.0258
=
Bamwell, South Carolina
(.8%) x (2.331)
.A1BS
=
i Waste Burial 1.1894
=
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(.89~76) +.13(.8333) +.22(1.1894) l
=.5834 +.1083 +.2617
=.9534 The Minimum Decommissioning Amount for CNS in 1986 dollars is $125.4 million as determined earlier in this section. Application of the above Escalation Factor results in the following calculation:
1986 Minimum Decommissioning Amount x 1990 Escalation Factor = 1990 Minimum Decommissioning Amount
$125.4 million x.9534 = $119.6 million
'Dici, 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 selectod. The District has selected the external trust method to provide financial assurance.
Additionally, the District shall, in accordanca 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 Deoosits 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 Decornmissioning CNS.
Annual deposits to the Fund will be calculated as fo! lows:
3
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 License life and the May 31,1990, deposit to the FirsTier Bank, N.A., Lincoln, 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 / years remaining CNS Operating License
$134.1 million/19 years = $7.05789
$7.058 million (1900 deposit)
The District deposited the '.058 million with the Trustee on May 31,1990.
.Subsecuent 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)
<S119,600,000 B.
Less the current balance in the Fund S 14,365,990 C.
Equals the uncollected Estimated Minimum Decommissioning Amount (A - B)
$105,234,010 D.
CNS Remaining Years of Operating Ute (C 22 E.
Present Years Annual Payment (C / D)
$ 4,783,400 (UThe District subrnitted a request to the NRC for an extension of the Operating 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 January 18,2014.
The District has limited the investment and reinvestment of Decommissioning Trust Funds to the folloviing: (1) Direct obligation of or obligations guaranteed by the United States of As.: erica; (2) bonds, debentures, or notes issued by any of the fo! lowing federal agencies: Federal;ntermediate Credit Banks, Federal Home Loan Bank System, Federal National Murtgage 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 investme,.. 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.
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