ML20205D423

Forwards Decommissioning Funding Rept for Pilgrim Nuclear Power Station,In Accordance with 10CFR50.75(f)(1)

ML20205D423
Person / Time
Site:	Pilgrim
Issue date:	03/24/1999
From:	Alexander J BOSTON EDISON CO.
To:	NRC OFFICE OF INFORMATION RESOURCES MANAGEMENT (IRM)
Shared Package
ML20205D426	List: ML20205D423 ML20205D447
References
BECO-2.99.028, NUDOCS 9904020202
Download: ML20205D423 (9)

Text

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L s Boston Edison A BE C EN ERGY CO M PANY 10 CFR 50.75(f)(1)

J.F. Alexander Nuclear Assessment Group Manager March 24,1999 BECo Ltr. 2.99.028 U.S. Nuclear Regulatory Commission Attention: Document Control Desk Washington, DC 20555 Docket No. 50.293 License No. DPR-35 Pilarim Decommissionina Fundina Status Report In accordance with 10 CFR 50.75(f)(1), attached is the Boston Edison Company decommissioning funding assurance report for Pilgrim Nuclear Power Station. g Should you have any questions regarding the report, please contact Mr. Charles Minott of our Asset Management Group at (508) 830-7900.

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PDR ADOCK 05000293 4 I PDR  ;

JDK/cle 299028 Exhibit A: Boston Edison Company NRC Decommissioning Funding  ;

Assurance Report - March 31,1999 Exhibit B: Boston Edison Company Master Decommissioning Trust  !

Agreement for Pilgrim, Nuclear Power Station a0020  !

l Pilgrim Nuclear Power Station, Rocky Hill Road, Plymouth, Massachusetts 02360  ;

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I i cc: Mr. Alan B. Wang, Project Manager Project Directorate 1-3

, Office of Nuclear Reactor Regulation Mail Stop: OWFN 8F2 U. S. Nuclear Regulatory Commission 1 White Flint North 11555 Rockville Pike Rockville, MD 20852 Senior Resident inspector i

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EXHIBIT A - BECo LETTER 2.99.028 e Boston Edison Company NRC Decommissioning Funding Assurance Report - March 31, ,

1999 (5 pages) i P

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k Boston Edison Company NRC Decommissioning Funding Assurance Report March 31,1999

1. Decommissioning cost estimate per 10 CFR 50.75 (b) and (c) $328,131,580 See Exhibit A attached

2. Amount accumulated at December 31,1998 (est.) $ 160,828,500 for items in 1. above

3. Schedule of annual collections for items in 1. above Decommissioning Cost Annual Return on Total 10 CFR 50.75 Collections Assets Assets (b) and (c) 12/31/98 $160,828,500 $328,131,580 1999 $12,056,100 $ 8,342,828 181,227,428 337,975,527 l 2000 12,417,783 $9,371,816 203,017,026 348,114,793 2001 12,790,316 $ 10,470,609 226,277,952 358,558,237 2002 13,174,026 $11,643,248 251,095,226 369,314,984 1 2003 13,569,247 $12,893,992 277,558,466 380,394,434 2004 13,976,324 $ 14,227.331 305,762,121 391,806,267 l 2005 14,395,614 $ 15,647,996 335,805,732 403,560,455 2006 14,827,482 $ 17,160,974 367,794,187 415,667,268 I 2007 15,272,307 $ 18,771,517 401,838,011 428,137,286 2008 15,730,476 $20,485,162 438,053,650 440,981,405 2009 16,202,390 $22,307,742 476,563,782 454,210,847 l 2010 16,688,462 $24,245,401 517,497,645 467,837,173 l 2011 17,189,116 426,304,610 560,991,371 481,872,288 06/08/12 7,775,353 12,403,802 581,170,527 488,220,955 1

4. Assumptions l Decommissioning cost escalation 3% l Rate of earnings on decommissioning fund 5% )

MA Dept. of Telecommunications and Energy settlement i agreement schedule of collections applicable to items 1. above 5 Contracts As filed

6. Modifications to funding atsurance methods None

7. Trust Agreement and Amendment One Attached See Exhibit B attached m

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I l EXHIBIT A l 1998 BOSTON EDISON COMPANY <

CALCULATION OF MINIMUM FINANCIAL ASSURANCE AMOUNT PILGRIM UNIT 1 l BWR UNIT The following is a calculation of the minimum amount required to demonstrate reasonable assurance of fund availability to decommission Pilgrim Unit 1, calculated under the NRC methodology set out at 10 CFR b ' 7 5(c).

MASSACHUSETTS REGIONS I ABOR (L) = NORTHEAST L= 1,66 FROM APPENDIX 1 TO EXHIBIT A ENERGY (E) = NATIONAL E= 0.63 FROM APPENDIX 2 TO EXHIBIT A WAbTE BURIAL (B) = S. CAROL.INA B= 6.97 FROM APPENDIX 3 TO EXHIBIT A a) BWR ESCALATION FACTOR ESCALATION FACTOR = 0.65(L) + 0.13(E) + 0.22(B)

= 0.65(1.66) + 0.13(0.63) + 0.22(6.97)

= 2.69 I bl BASE AMOUNT FOR BWR BETWEEN 1200 MWt AND 3400 MWt )

BASE AMOUNT = $(104 + 0.009P) million

= $(104 + 0.009(1,998)) million

= $ 121,982,000 WHERE :

P = POWER LEVEL OF UNIT IN MEGAWATTS THERMAL (PILGRIM = 1,998 Mwt) c) ESCALATED AMOUNT FOR UNIT ESCALATED AMOUNT = BASE AMOUNT X ESCAL ATION FACTOR

= $121,982,000 X 2.69

= $ 328,131,580 l

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l l APPENDIX 1 TO EXHIBIT A l LABOR ("L") ESCALATION FACTOR FOR DECEMBER 1998  ;

l JANUARY 1986 REGION (BASE) DECEMBER 1998 L = DECEMBER 98 / BASE I

i NORTHEAST 130.5 216.9 1.66 I l

I VALUES USED IN THIS CHART WERE OBTAINED FROM TABLE 1 BY THE U.S. DEPARTMENT OF LABOR, EMPLOYMENT COST INDEX BUREAU OF LABOR STATISTICS (DECEMBER 1998)

NORTHEAST REGION:

JUNE 1981 = 100.0 (BASE INDEX PRIOR JUNE 1989)

JUNE 1989 = 155.5 (EASE INDEX AFTER JUNE 1989)

DECEMBER 1998 = 159.5 CONVERSION OF DECEMBER 1998 INDEX TO OLD INDEX:

139.5 X 155.5/100 = 216.9 l

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(APPENDIX 2 TO EXHIBIT A l ENERGY ("E*) ESCALATION FACTOR FOR DECEMBER 1998

' THE EQUATION FOR CALCULATING'THE ENERGY ESCALATION FACTOR IS AS FOLLOWS:

(PER NRC REGULATORY GUIDE 1.159 (TASK DG-1003),SECTION 1.2, AUGUST 1990)

BWR: E = 10.23P + 0.77F]

VALUES FOR P (electric power) and F (fuel oil) were ob't eined from'the

',*' Producer Price Indexes," published by the U.S. Department of Labor, Burnu of Labor Statistics. P and F ere not divided into regional statistics; P for DECEMBER 1998 F for DECEMBER 1998 divided by divided by E REGION P for January 1986 F for January 1986 NATIONAL 127.5/114.2 - 1.12 39.2/82 = ' O.48 0.63 BUREAU OF LABOR STATISTICS

REFERENCE:

P= PPI0543 F='-PPI0573 4-1

J e, l APPENDIX 3 TO EXHIBIT A ,]

l BWR WASTE BURIAL ("B") ESCALATION FACTOR

• 1*JREG 1307 REVISION 8 REGION 1998 COST /1986 COST BARNWELL ,SO. CAROLINA 6,968 I

THE WASTE BURIAL ESCALATION FACTOR WAS OBTAINED FROM DATA IN i TABLE 2.1 OF

• REPORT ON WASTE BURIAL CHARGES," NUREG 1307, REVISION

^l 8 (DECEMBER,1998) WHICH IS THE MOST RECENT NRC REPORT.

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EXHIBIT B - BECo LETTER 2.99.028 e Boston Edison Company Master Decommissioning Trust Agreement for Pilgrim Nuclear Power Station (33 pages) .

• Notary Statements: Marc Alpert and Theodora Convisser (1 page)

. .- Notary Statements: Stephen Neis and Richard Barry (1 page) 1

e Exhibit A to Trust Agreement (1 page)

. Letter dated July 30,1998 from Robert Weafer to Ivor Finnegan RE: Boston Edison Company Decommissioning Trust (Revised Exhibit A to the Trust Agreement) (2 pages) y

.* Certificate of authorization for trustee payment to payee (Exhibit B) (1 page) e First Amendment to the Boston Edison Company Master Decommissioning Trust Agreement for Pilgrim Nuclear Power Station (2 pages) i 4

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