ML20113B335
| ML20113B335 | |
| Person / Time | |
|---|---|
| Site: | Cooper  |
| Issue date: | 12/31/1995 |
| From: | NEBRASKA PUBLIC POWER DISTRICT |
| To: | |
| Shared Package | |
| ML20113B328 | List: |
| References | |
| NUDOCS 9606270053 | |
| Download: ML20113B335 (4) | |
Text
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, i Cooper Nuclear Station
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Decommissioning Funding Plan )
December 31,1995 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 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 operating conditions. In July,1974, the District received from the Nuclear Regulatory Commission (the "NRC") an Operating License to operate CNS at 100% reactor core power. :
The Operating License authorizes operations of CNS at reactor coro power levels not in excess of 2,381 MW (thermal). The original Operating License was valid through June 4, 2008. The District submitted a request to the NRC for an extension of the Operating License ,
1 to recover the construction period, in July 1991, the NRC approved such request and granted a license amendment to extend the Operating License expiration date until January 18,2014.
. Section 2 - NRC Financial Regulation for Decommissioning NRC rugulation 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 Decommissioning Estimate - Cocoer 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.
Eirit, 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 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 9606270053 96061428 1 DR ADOCK o
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Second, the Minimum Decommissioning Amount is to be adjusted annually using the following formula:
(Minimum Decommissioning Amount) x (.65L + .13E + .22B)
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
& Light Fuel Oils weighted as indicated. For CNS, the January 1986 Minimum Decommissioning Amount of $125.4 million is escalated as follows:
Indices Labor (Note: Base Year indexis 1989)
U.S. Department of Labor - Bureau of Labor Statistics Employment Cost Index Private Nonfarm Workers Compensation (Midwest Region) -
December,1995/ January,1986 Labor = 128.4/88.7 = 1.448 Enerav (Note: Base Year index is 1982)
U.S. Department of Labor - Bureau of Labor Statistics Producer Price index i Industrial Electric Power (West North Central Region)
December, 1995 = 127.8 and January, 1986 = 114.2 Light Fuel Oils December, 1995 = 60.6 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:
l Energy = [(127.8/114.2) x .23] + ((60.6/82.0) x .77]
Energy = .257 + .569 Energy = .826 Waste Burial NUREG-1307 Rev 5 (most current available index as of 8-1-95)
South Carolina Index August,1995/ January, 1986 10.420/1.000 = 10.420 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(1.448) + .13(.826) + .22(10.420)
= .941 + .107 + 2.292
= 3.340 2
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. 1 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 1995 Escalation Factor = 1995 Minimum Decommissioning Amount
$125.4 million x 3.340 = $418.836 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 27,1983, 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 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 I License life and the May 31,1990, deposit to the FirsTier Bank, N.A., Lincoln, Trustee, at the i time of this Plan). For purposes of this Plan, Decommissioning of CNS was assumed to begin at the end of the original Operating License (June 4,2008). However, the possibility exists that CNS may be decommissioned earlier because of contractual relationships or l other reasons. In the event a decision is made for an early decommissioning of CNS, a new l funding p?n will be developed.
I NRC 1989 Minimum Decommissioning Amount / years remaining CNS Operating '
License
$134.1 million/19 years = $7.05789
$7.058 million (1990 deposit)
The District deposited the $7.058 million with the Trustee on May 31,1990.
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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) $418,836,000 B. Less the current balance in the Fund (as of 3/31/95) 69,766,363 C. Equals the uncollected Estimated Minimum Decommissioning Amount (A - B) 349,069,637 D. CNS Remaining Years of Operating Life m 18 E. Present Years Annual Payment (C / D) < $ 19,392,758 WThe Detrict submitted a request to the NRC for an extension of the Operating Ucense to recover the construction period. !n July 1991, the NRC approved such request and granted a license amendment to extend the OperaSng Ucense expiration date until 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 Associatior, 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.
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