ML20101F960
| ML20101F960 | |
| Person / Time | |
|---|---|
| Site: | Cooper  |
| Issue date: | 06/19/1992 |
| From: | Horn G NEBRASKA PUBLIC POWER DISTRICT |
| To: | NRC OFFICE OF INFORMATION RESOURCES MANAGEMENT (IRM) |
| References | |
| NSD920636, NUDOCS 9206250231 | |
| Download: ML20101F960 (8) | |
Text
GENERAL OCRCE
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P O DOX 499 COL'JMBUS. NEDnASKA 68602-0499 id Nebraska Public Power District
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.===c NSD 20636 June 19, 1992 U.S. Nuclear Regulatory Commission Attention:
Document Control Desk Washington, DC 205SS Gentlemen:
Subject:
Annual Audit of the Decommissioning Trust Fund Cooper Nuclear Station NRC Docket No. 50-298, DPR-46
Reference:
Letter frotn 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 oursuant to 10CFR50.75. This submittal enntained, in part, a trust fund agreement the District has entered into in order to ensure adequate funds will be available for the decommissionity of CNS.
The NPPL f acommissioning Trust Fund Agreement requires an annuni independent a " tit to be performed ior each calendar year.
Enclosed, is a copy of the indeperient audit of the Decommiscioning Trust Fund for the year ending December 31, 1991. This report includes the following informatinn:
1)
Report of indepeae
.c accountants.
2)
Statement of as.se a and fund balance as of Deceuber 31, 1991 and 1990.
3)
Statement of changes in the fund balance for the years ending December 31, 1991 and 1990.
4)
Notes - Description of Trust Fund and basis of accounting.
5)
Schedule of investments (list of investments).
If you have any questions, please call.
Sinc rely,
/ Cw G. A(, llorn Nucicar Power Group Manager GRH/dnm Attachment cc:
Regional Administrator USbRC - Region IV NRC Resident Inspectc,r Cooper Nuclear Station 9206250231 920619
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NEBRASKA PUBLIC POWER DISTRICT NUCLEAR FACILITY DECOMMISSIONING TRUST FUND FINANCIAL STATEMENTS for the years ended December 31, 1991 and 1990 d
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1 &Ly] rand REPORT OF INDEPENDENT ACCOUNTANTS To the Board of Directors Neblaska Public Power District We have audited the accompanying statements of assets and fund balance - modified cash basis of Nebraska Public Power District Nuclear Facility Trust Fund as of December 31, 1991 and 1990, 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 audit in accordance wi-h generally accepted auditing standards.
Those standards raquire that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement.
An audit includes e.xamining, 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 audit prvvides a reasonable basis for our opinion.
2 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, 1991 and 1990, and its changes in fund balance for the years then ended, on the basis of accounting described in Note 2.
Cur audit was conducted for the purpose of forming an opinion on the basic financial statements taken as a whole.
The schedule of investments 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 whole.
l Omaha, Nebraska April 20, 1992 _
9 NEBRASKA PUBLIC POWER DISTRICT L NUCLEAR FACILITY DECOMMIS!1IONING TRUST FUND STATEMENTS OF ASSETS AAD FUND ~ BALANCE as of December 31, 1991 and 1990-1991 1990 Investments, at market value, cost of $14,365,992 in 1991 and
$7,384,605 in 1990:
Cash equivalents-S 314,976 517,445 Government and government-guaranteed securities-14,900,650 6,932,800 Tota 1 assets
$15,215,626
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Fund balance.
$15,215,626
$ 7, 4 5 0, 2 4,5,.
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The accompanying notc*, arc un integrai part of the fina.cial statements.
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NUCLEAR FACILITY DECOMMISSIONING TRUST FUND STATEMENTS OF CHANGES IN FUND BALANCE for the years ended December 31, 1991 and 1990 i ;
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122,1 1990 Contributions:
Nebraska Public Power District S 6,328,600
$7,058,000 i
Investment income:
Interest 655,083 328,541 Increase in unrealized appreciation of investments held at year end 783.994 65.640
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Total additions 7.767.677 7.452.181 k
Trustee fees 1,325 090 i
j Miscellaneous transaction expenses 971 1.046-Total deductions 2. 2 9Jli 1.936 Net increase in fund balance 7,765,381 7,450,245 l
Fund balance:
Beginning of year 7.450,245 End of year
$15,215,626
. $7.450,245 i
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The accompanying notes are an integral r-uf the financial statements.
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NEBRASEA PUBLIC POWER DISTRICT NUCLEAR FACILITY DECOMMISSIONING TRUST FUND NOTES TO FINANCIAL STATEMENTS 1.
Descriptien ql_ Trust Fund:
(a)
Fund Reauirement:
The Nuclear Regulatory Commission (NRC' published in the Federal Register amendments to 10 CFR Part 50 53 FR specifyi(ng the 24018) dated June 27, 1988, a final rule requirements for the decomissioning of electric utility nuclear generating facilities.
Contained in this rule is a requirement to submit a decommissioning funding I
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 Nuc3 ear Station (CNS), an-800 MW. nuclear generating plant.
The purpose of the Plan is to provide infermation on how reasoncble assurance will be provided that funds will be available to decommission CHS.
For purposes of this Plan, decommissioning of CNS is assumed to begin-at the end of the existin Operating License.
The current Operating License,g which Uas icsued in July 1974, is valid through January 18, 2014.
The Plan indicates that the possibility exi,ts that CNS may be decommissioned earlier because of contractual-relationships or other reasons; in the event a decision is made for an carly decommissioning of CNS, a new funding plan will be developed (b)
Fund Establishment and Trustee Acreement:
6 The Plan required that the District select a method or 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. Trus Fund Agreement (Agreement) 'was executed by the District and the Trustee,- who is FirsTier Bank-M.A.,
of Lincoln, Nebraska.
The Agreement provides specific guidelines regarding Trust Fund transactions and administration of the Trust Fund.
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NEBRASKA'PUBLIC POWER DISTRICT NUCLEAR FACILITY DECOhMISSIONING TRUST FUND NOTES TO FINANCIAL STATEMENTS, CONTINUED 1.
Description of Trust Fund. Continued:
(c)
Collection of Decommissionina Costs and Subseauqnt Decosit to the Decommissj QDina Trust Fund:
Estimated decommissioning costs are collected by the District through billings to Nuclear Facility participants.
Each Lonth as revenues are collected, the District transfers monies to the District's internal 3
Decommissioning - Fund account.
The monies are held in the District's Decommjrsioning Fund account until cuch 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 lasor, energy costs'and waste burial over the remaining operating life of CNS as stipulated in the NRC regulations and in the Decommissioning F.uaing Plan submitted to the NRC.
The transfer is to be made no later than June 1~ followiag each year end.
Deposits in the amount of $6,328,600 and
$7,058,000 were made for the years 1991 and 1990, respectively.
Any monies in excess of the required transfer amount-are retained in the District's Decommissioning Fund account.
~1.
Basis of AccountiDE:
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-askea quotations of national markets.
District contributions are recorded when deposited into the Trust Fund.
Interest income i
is recorded when received.
Trustee fees-and. miscellaneous expenses are-recorded when paid.
3.
Trustee re;1:
Beginning July 1, 1991, the District began paying all trustee fces for the Trust Fund.
Fees of - 31,8 56 wer e paid-by the District for the Trust Fund during 1991.
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NEBRASKA PUBLIC POWER DISTRICT NUCLEAR FACILITY DECOMMIS$10NING TRUST FUND SCHEDULE OF !NVESTMENTS Decencer 31, 1991 Nurter of Shares or Market Price Principal Value 12/31/91 Amount Cost 12/31/91 Cash equivaients Federated Trust for U.S. Treasury Obligations 4.61% as of 12/31/91 314.976
's 314.976 5 314.976
+
Total 314.976 314.976 314.976 Bonde, notes and bills:
Federated National Mortgage Associat tor.,
dated 06/11/90 - 06/12/05, 8.85%.
105.125 3,000,000 3,000,000 3,153,750 United States Treasury Note, dated 02/15/90 - 02/15/2000, 8.5%
111.563 3,000,000 3,025,312 3,346,890 united States treasury Note, dated 11/03/86 - 10/15/93, 7.125%
104.063 2,000,000 1,998.750 2,081,260 United States Treasury Note,
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dated 04/30/91 - 04/30/96, 7.625%
106.469 3,000,000 2,984,063 3,19/.,070 -
United States Tre:sury Note, dated 10/15/91 - 10/15/98, 7.125%
104.156 3.000.000 3.042.891 3.124.680 r
Total 14.000.000 14.051.016 14.900.650 Total investments
$14.314.976 514.365.992 515.215,626 I... -.
.