ML20133A255
| ML20133A255 | |
| Person / Time | |
|---|---|
| Issue date: | 04/23/1985 |
| From: | Steyer K NRC |
| To: | NRC |
| Shared Package | |
| ML20133A077 | List: |
| References | |
| FOIA-EAT85-270 NUDOCS 8507200046 | |
| Download: ML20133A255 (3) | |
Text
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APR 2 31985 Note to: File :
From: Chemical Engineering Branch Decomissioning Staff
SUBJECT:
CALCULATION OF DECOWIISSIONING COST INFLATION FACTOR The following discussion has been prepared to more clearly explain earlier handwritten calculation: ;
In response to the Comission comment that the proposed rule incorporate a method to adjust the $100M value in the future, the following assumptions and calculations were made:
- 1. Major cost elements are waste and labor;
- 2. From letter from R. I. Smith to C. Feldman, inflation rates from 1978 (year of estimate used in original PNL reports) to 1984 are:
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, . . . . . . . .4 labor 50% ($23M to $35M)
- 3. Assuming as done in 10 CFR Part 40 Appendix A, Criterion 10, that q labor rates rise at-the rate of change.of-the Consumer Price Index. . . .
publishe8 by the U. S. Department of Labor and putting other J.y. no. .e.,4
. ..e.e.s.- noWMste' decourissioninsj-iteestW4 hat' estet yleMs ethe, folkwkige . $ ..wgr. :e.c.w equation for escalation of the $100M:
C = 100M + (30M x WI + 70M x CPI) wnere C is the escalatec cost W: is the inflation rate of waste
. . - . ., m : N is 't' e'coEs'uide'r' h prite index~ ratie of cha'rige' '
30M is the cost of waste disposal from the R. I. Smith letter.
70M is all other decomissioning costs.
8507200046 850509 PDR FOIA VAfJ EAT 85-270 PDR
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Note to File 2 APR2 8 585
- 4. From statement 2 above, WI = 4 x CPI, so C = 100M + (30M x 4 x CPI + 70M x CPI) and C = 100M + 190M x CPI and C = 100M (1 + 1.9 CPI)
Hence, using the original $100M and inflating it by a factor of 2 CPI appears to be a way to respond to Comission connent without having to resort to continuous rulemaking.
These facters are based on the historical period noted. Waste disposal costs in the future are uncertain. If the decomissioning costs differ significantly in the future from that approximated in this manner the regulation may be modified. Alternatively a licensee may prepare a facility specific funding plan.
b Keith G. Steyer, Chief
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