ML20205G779

Provides Info Re Status of Decommissioning Funding for Yankee Power Station,Per 10CFR50.75(f)

ML20205G779
Person / Time
Site:	Yankee Rowe
Issue date:	03/31/1999
From:	Bennet T YANKEE ATOMIC ELECTRIC CO.
To:	NRC OFFICE OF INFORMATION RESOURCES MANAGEMENT (IRM)
References
BYR-99-022, BYR-99-22, NUDOCS 9904070378
Download: ML20205G779 (4)

Text

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YANKEE ATOMICELECTRIC COMPANY 'l$"'l'!s*jo"*;"l'J 580 Main Street, Bolton, Massachusetts 01740-1398

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March 31,1999 BYR 99-022 U. S. Nuclear Regulatory Commission Attention: Document Control Desk Washington, DC 20555

Reference:

(a) License No. DPR-3 (Docket No. 50-29)

Subject:

Decommissionina Fundina Assurance - 10CFR50.75(f)

In accordance with 10CFR50.75(f), this letter provides information on the status of decommissioning funding for the Yankee Nuclear Power Station. Attachment 1 provides the requested information, in October 1994 N, YAEC submitted its revised Decommissioning Cost Study based on the assumption that dismantlement activities would not begin until a Inw-level radioactive waste disposal site became available to Yankee in 2003. This study was revised in June 1995 following the reopening of the low-level waste facility in Bamwell, South Carolina, and subsequently filed with FERC in August 1995 (docket no. ER95-835-000). The 1995 Cost Study is a site-specific decommissioning cost estimate developed by adjusting the 1994 Coct Study for the clifferences in decommissioning timing, waste disposal costs, and cne year of escalation. The 1995 Cost Study estimate of "to-go" costs remaining as of January 1995 is

$303.2 million in constant value 1995 dollars. In addition, as part of the final December 1995 FERC settlement, Yankee was allowed to increase its cost estimate by $3.2 million in the decommissioning trust fund to adjust for adjudicatory delays during reapproval of the Decommissioning Plan, bringing the total January 1995 "to-go" cost to $306.4 mir ?995 dollar). Of this $306.4 million, $101 million is for activities (e.g., spent fuel storage ind ite restoration) other than those specifically included in 10CFR50.75. As of Decembe '

198, withdrawal of trust funds for decommissioning expenses (1993 - 1998) has amounta .

approximately $194 million (not escalated).

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9904070378 990331 PDR ADOCK 05000029 I PDR

'" YAEC Letter to USNRC. " Updated Decommissioning Cost Study," dated October 26,1994, BYR 94-064.

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U.S. Nuclacr R:gulatory Commission BYR 99-022/Page 2 If you should have any questions, please contact Mr. Merrill Atkins, Licensing Manager, at (978) 568-2156.

Very truly yours, YANKEE ATOMIC ELECTRIC COMPANY

- mb T. Bennet - Vice President, Treasurer, Chief Financial Officer cc: H. J. Miller, Region 1 Administrator I

. M. B. Fairtile, NRC Project Manager, NRR 1

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- O.S. Nucle r R:gul". tory Commission BYR 99-022/Page 3

. Attachment 1 NRC Decommissionina Fundina Status Report j Yankee Nuclear Power Station (YNPS)

(status as of 12/31/98) 4 i

The minimum decommissioning fund estimate, pursuant to 10 CFR 50.75 (b) and (c) $ 221 million The amount accumulated at the end of the calendar year preceding the date of the report for items included in 10 CFR 50.75 (b) and (c). W $ 151 million j

A schedule of the annual amounts remaining to be collected; for items in 10 CFR 50.75 (b) and (c).

amount remaining W $ 59 million

1. years to collect 1.5 The assumptions used regarding escalation in decommissioning cost, rates of eamings on decommissioning funds, and rates of other factors used in funding projections; Escalation rates, generated during the FERC case, are as follows: labor - 3.79%; energy

- 3.79%; burial - 7.7%; capital- 5.05%; and low-level waste bond - 6.00%. Eamings rates, generated during the FERC case, are as follows: pre-tax (taxable)- 5.61-6.00%;

pre-tax (tax exempt) - 3.98-4.26%; and pre-tax equity - 10%. Other rate assumptions were: state tax rate, non-qualified trust - 6.5%; federal tax rate, qualified trust - 20%; and federal tax rate, non-qualified trust - 34%.

Any contracts upon which the licensee is relying pursuant to 10 CFR 50.75(e)(1)(ii)(c);

Yankee is currently collecting decommissioning funds through its Power Contracts. The Power Contracts obligate the purchasers for the full costs of decommissioning YNPS, including spent fuel storage and site restoration. The FERC orders received by Yankee ]

l . acknowledge the continuing obligation of the purchasers with respect to the full cost of 1

decommissioning YNPS. l l

A This market value balance includes amounts in the Trust for all decommissioning costs including site restoration and long term spent fuel storage as well as decommissioning as defined in 10CFR50.2.

m The December 1995 settlement agreement with FERC allows the Company to collect $39.4 million annually I

during the remaining period through June 2000.

'. ' b.S.'Nucinr R:gulatory Commission BYR 99-022/Page 4 Any modifications to a !!censee's current method of providing financial assurance occurring since the last submitted report.

None. An extemal irrevocable Trust, in compliance with 10CFR50.75(o)(1)(ii), was established in April 1981(amended in 1987 and 1988) to accumulate YNPS decommissioning funds. A copy of the trust document was provided in July 1990. W Any material changes to trust agreements.

Yankee Atomic Electric Company changed its decommissioning trustee from Mellon Bank to The Rank of New York effective December 1,1998. There were no material changes to the Trust Agreement other than a "Trustca" name change.

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W YAEC Letter to USNRC, " Decommissioning Financial Assurance Report and Certification," dated July i 25,1990, BYR 90-102.

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