ML20107G315
| ML20107G315 | |
| Person / Time | |
|---|---|
| Site: | Cooper  |
| Issue date: | 04/15/1996 |
| From: | Mueller J NEBRASKA PUBLIC POWER DISTRICT |
| To: | NRC OFFICE OF INFORMATION RESOURCES MANAGEMENT (IRM) |
| References | |
| NLS960064, NUDOCS 9604230181 | |
| Download: ML20107G315 (10) | |
Text
.o em COOPER NUCLEAR STATION P.O. BOX 96. BROWNVILLE, NEBRASKA 6832i Nebraska Public Power District "Wg="
m NLS960064 April 15, 1996 U.
S.
Nuclear Regulatory Commission Attention: Document Control Desk Washington, DC 20555
Subject:
Annual Audit of the Decommissioning Trust Fund Cooper Nuclear Station NRC Docket No. 50-298, DPR-46
Reference:
Letter from G.
A.
Trevors (NPPD) to U.
S.
Nuclear Regulatory Commission (NRC) dated June 13, 1990, " Decommissioning Funding Plan" Gentlemen:
Nebraska Public Power District (NPPD) 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 NPPD 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 annual independent audit to be performed for each calendar year.
Enclosed is a copy of the independent audit report of the Decommissioning Trust Fund for the year ending December 31, 1995.
This report includes the following information:
1)
Report of independent accountants.
2)
Statement of assets and fund balance as of December 31, 1995, and 1994.
3)
Statement of changes in the fund balance for the years ending December 31, 1995, and 1994.
4)
Schedule of investments (list of investments).
If you have any questions, please contact me.
l < // m H.
Mueller Site Manager 9604230181 960415
/nr PDR ADOCK 05000298 I
PDR Enclosure cc:
Regional Administrator w/ enclosure USNRC - Region IV T.
E. Trouba w/ enclosure L.
D. Linder w/o enclosure J[g NPG Distribution w/o enclosure
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LIST OF NRC COMMITMENTS l ATTACHMENT 3 Correspondence No: NLS960064 The following table identifies those actions committed to by the District in this j
document.
Any other actions discussed in the submittal represent intended or I
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 Manager at Cocper Nuclear Station of any questions regarding this document or any associated regulatory commitments.
COMMITTED DATE COMMITMENT OR OUTAGE None l
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PROCEDURE NUMBER O.42 l
REVISION NUMBER 1 l
PAGE 9 OF 11 l
NEBRASKA PUBLIC POWER DISTRICT NUCLEAR FACILITY DECOMMISSIONING TRUST FUND FINANCIAL STATEMENTS for the years ended December 31,1995 and 1994 l
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Coo 3ers
&Ly3 rand a professonal serv.ces firm 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 the Nebraska Public Power District Nuclear Facility Decommissioning Trust Fund (the " Trust") as of December 31,1995 and 1994, 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 audits.
j We conducted 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 Trus:
Fund at December 31,1995 and 1994, 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 whcle. The schedule of investments at December 31, 1995 is presented for purposes of additional huolysis 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.
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hM Omaha, Nebraska February 5,1996 I
Coopers & Lybrand LLP, ra a member of Coopers & Lybrand Internabonal, a hmited habdity assocration incorporated in Set 2arland.
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NEBRASKA PUBLIC POWER DISTRICT NUCLEAR FACILITY DECOMMISSIONING TRUST FUND STATEMENTS OF ASSETS AND FUND BALANCE - MODIFIED CASH BASIS as of December 31,1995 and 1994 1995 1994 Investments, at market value, cost of $69,766,365 in 1995 and $48,305,725 in 1994:
Cash equivalents S
687,851
$ 3,027,384 Government and government-guaranteed securities 71.488.470 42.876.240 Total assets
$72.176.321
$45.903.624 Fund balance
$72.176.321
$45.903.624 l
f I
l The accompanying notes are an integral part of the financial statements.
2
NEBRASKA PUBLIC POWER DISTRICT NUCLEAR FACILITY DECOMMISSIONINO TRUST FUND STATEMENTS OF CHANGES IN FUND BALANCE - MODIFIED CASH BASIS for the years ended December 31,1995 and 1994 i
1995 1994
- Contributions:
Nebraska Public Power District
$17,862,900
$17,765,200 investment income:
Interest 3,605,260 2,250,800 increase (decrease) in unrealized appreciation of investments held at year end 4.812.059 (3.595.470)
Total additions 26.280.219 16.420.530 Miscellaneous transaction expenses 7.522 5.493 Net increase in fund balance 26,272,697 16,415,037 Fund balance:
Beginning of year 45.903.624 29.488.587 End of year
$72.176.321
$45.903.624 l
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The accompanying notes are an integral part of the financial statements.
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i NEBRASKA PUBLIC POWER DISTRICT NUCLEAR FACILITY DECOMMISSIONING TRUST FUND NOTES TO FINANCIAL STATEMENTS 1.
Descrintion of Trust Fuad:
(a)
Fund Reauirement:
The Nuclear Regulatory Commission (the "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 (the " District") prepared and submitted a Decommissioning Funding Plan (the " Plan") to the NRC for funding the deconunissioning 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 deconunission 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 As'reement:
The Plan required that the District select a method of providing reasonable assurance that funds would be available for decormnissioning 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 (the " 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.
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NEBRASKA PUBLIC POWER DISTRICT NUCLEAR FACILITY DECOMMlfSIONING TRUST FUND NOTES TO FINANCIAL STATEMENTS, CONTINUED 1.
Description of Trust Fund. Continued:
(c)
Collection of Decommissioninn Costs and Subsecuent Deposit to the Decommissionine 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 Decormnissioning 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 $17,862,900 and $17,765,200 were made for the years 1995 and 1994, respectively. Any monies in excess of the required transfer amount are retained in the District's Decommissioning Fund account.
2.
jlasis of Accounti.ng:
1 With the exception of the unrealized increase / decrease in marker 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 j
recorded when deposited into the Trust Fund. Interest income is recorded when received.
I Miscellaneous transaction expenses are recorded when paid.
3.
Trustee Fees:
Trustee fees of $16,981 and $10,610 were paid by the District for the Trust Fund for the years ended December 31,1995 and 1994, respectively.
(
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NEBRASKA PUBLIC POWER DISTRICT NUCLEAR FACILITY DECOMMISSIONING TRUST FUND SCHEDULE OF INVESTMENTS December 31,1995 Number of Shares or Market Price Principal Value 12/31/95 Amount Cost 12/31/95 Cash Eauivalents Federated Trust for U.S. Treasury Obligations, 5.4% as of 12/31/95 N/A
$ 687.851 5 687.851
$ 687.851 Total cash equivalents 687.851 687.851 687.851 Bonds. Notes and Bills United States Treasury Note, dated 02/15/90 02/15/2000,8.5%
!I l.469 3,000,000 3,025.312 3,344,070 i
- United States Treasury Note, dated 04/30/91 04/30/%,7,625%
100.812 3,000,000 2,984,063 3,024,375 United States Treasury Note, dated 10/15/91 - 10/15/98,7.125%
104.844 5,000,000 5,072,891 5,242,200 United States Treasury Note, dated 11/15/91 II/15/2001,7.5%
110.250 2,000,000 2,171,875 2,205,000 United States Treasury Note, dated 7/31/92 7/31/97,5.5%
100.531 6,000,000 5, % 3,414 6,031,890 United Stres Treasury Note, dated N/15/92 4/15/99,7.0%
105.125 6,000,000 6,118,594 6,307,500
- United States Treasury Note, dated B/15/92 - 8/15/2002,6.375%
105.000 8,000,000 7,989,844 8,400,000 United States Treasury Note, dated 2/15/93-- 2/15/2003,6.25%
IN.375 8,000,000 8,203,125 8,350,000 Umted States Treasury Note, dated 5/15/94 5/15/20N,7.25%
111,062 8,000,000 8,459,375 8,885,000 United States Treasury Note, dated 5/31/95 5/31/2000,6.25%
103.406 5,000,000 5,135,938 5.170,325 Federal Home Loan Dank dated 4/06/94 4/06/2001,6.67%
104.968 6,0w00 5,921,880 6,298,110 Federal National Mortgage Association dated 6/12/95 6/10/2005,6.35%
103.593 4,000,000 3,988,453 4,143,740 Federal Natonal Mortgage Association dated 9/1I/95 9/12/2005,6.85%
102.156 4.000.000 4.N3.750 4.086.260 Total bonds, notes and bdis
$6R.000 000
$69.078,514
$7 L488,470 Total investments
$68,687,851
$69.766.365
$72.176.321.
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