ML20205H108

Forwards Current Funding Status for Decommissioning Funds Established for OCNPP,TMI-1,TMI-2 & SNEC

ML20205H108
Person / Time
Site:	Oyster Creek, Saxton, Crane  File:GPU Nuclear icon.png
Issue date:	03/31/1999
From:	Furlong D GENERAL PUBLIC UTILITIES CORP.
To:	NRC OFFICE OF INFORMATION RESOURCES MANAGEMENT (IRM)
References
1920-99-20110, 1920-99-20111, 1920-99-20112, 1940-99-20108, NUDOCS 9904080068
Download: ML20205H108 (10)

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GPU Nuclear, Inc.

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One Upper Pond Road NUCLEAR Parsippany, NJ 07054-1095 Tel 973-316-7000 March 31,1999 1920-99-20110 1920-99-20111 1920-99-20112 1940-99-20108 U.S. Nuclear Regulatory Comraission i

Attention: Document Control Desk Washington, DC 20555 Ladies and Gentlemen:

Subject:

Decommissioning Funding Status for 1

Oyster Creek 14uclear Generating Station (OC) j Operating License No. DPR-16 j

Docket No. 50-219

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Three Mile Island Nuclear Station, Unit-1 (TMI-1)

Operating License No. DPR-50 Docket No. 50-289 Three Mile Island Nuclear Station, Unit-2 (TMI-2) l e

Possession Only License No. DPR-73

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f Docket No. 50-320

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Saxton Nuclear Experimental Corporation (SNEC) Facility Operating License No. DPR-4

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Docket No. 50-146 In accordance with 10 CFR 50.75 (f)(1), this letter reports the current funding status for the decommissioning funds established for the subject plants. This report provides funding status as j

of December 31, 1998, and the data reported is based on an assumption that GPU Nuclear operates TMI-l and Oyster Creek through their licensed lives. It is noted however that GPU 4

Nuclear entered into a definitive agreement to sell TMI-l to AmerGen Energy Company and GPU Nuclear is presently considering the r,e early retirement of the Of e-Creek facility.

. Additionally, it is noted that actual annual contribution amounts will vary ba;ed upon actual trust fund investment performance and inflation rates.

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PDR ADOCK 05000146M I

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Decommissioning Funding Status Page 2 of 2 -

If any additional information is neede:d, please contac Mr. David J. Distel, Nuclear Licensing and Regulatory Affairs at (973) 316-7955.'

Sincerely, D. M. Furlon Comptroller, Financial & Planning Services

/DJD Attachment cc:

Administrator, Region I

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OCNGS Senior Project Manager OCNGS Senior Resident Inspector Project Scientist, Region I Saxton Project Manager TMI-l Senior Project Manager TMI Senior Resident Inspector TMI-2 Senior Project Manager File No. 99059 4

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t OYSTEJ " REEK NRC Decommissioning Funonig Status Report 1.

Decommissioning fund estima:e, pursuant tol0 CFR 50.75 (b) and (c). (1995 OC site specific decommissioning study escalated to 1998 dollars.)'

$446.000.000 a.

Radiological

$407.000.000 b.

Non-radiological

$ 39.000.000 2.

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). (Accumulated as of December 31,1998.)

$277.822.0_0_0 3.

Schedule of the annual amounts remaining to be collected foritems in 10 CFR 50.75 (b) and (c).

a.

Amount remaining

$168.178.000

b. Annual rate collections in effect as of December 31,1998

$ 22.483.000 c.

Number of years to collect 10.25 4.

Assumptions used regarding escalation in decommissioning cost, rates of earnings on decommissioning f'urids, and rates of i

other factors used in funding projections; l

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a. Escalation on decommissioning cost estimate = 5.50% (applicable to December 31,1998')

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b.

'tfler tax rate of earnings on decommissioning funds: 6.75 %

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' A new site specific study was completed in Febmary 199'> (Total Estimate = $603m).

' Oyster Creek Page 2 of 2 5.

- Any contracts upon which the licensee is relying pursuant to 10 CFR 50.75 (e) (1) (v). -

Currently, the Oyster Creek decommissioning trust fund does not rely on purchase power contracts for funding.

6.

Any modifications to a licensee's current method of providing financial assurance occurring since the last submitted report. - None.

7..

Any material changes to trust agreements.

a. Trustee has been changed from ididlantic National Bank to Bank of New York as of October 1990.

b' The trust has been amended on March 1,1994 and December 1,1996 to allow commingling of assets and to incorporate Section 468A language, respectively, to provide increased investment flexibility.

c. The current list ofinvestment managers is as follows:

(1) NISA March 1994 (2) US Trust March 1994 (3) Bank ofNew York March 1994 (4) RCM.

March 1994 (5) Nuveen March 1994 (6) Bankers Tmst October 1990 l

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'fMI-1

' NRC Decommissioning Funding Status Report 1.

' Decommissioning fund estimate, pursuant to10 CFR 50.75 (b) 1 and (c). (1995 TMI-l site specific decommissioning ' study escalated to 1998 dollars.) '

$431.000.000 l

a.'

~ Radiological

$346.600.000 b.

Non-Radiological

$ 84.400.000 2.

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). (Accumulated as of December 31,1998.)

$169.737.000 3.

Schedul'e of the annual amounts remaining to be collected i

for items in 10 CFR 50.75 (b) and (c).-

a. Amount remaining

$261.263.000

b. Annual rate collections in effect as of December 31,1998

$ 17.935.000

c. Number ofyears to collect 15.25 4.

Assumptions used regarding escalation in decommissioning cost, rates of earnings on decommissioning funds, and rates of other factors used in funding projections; a.

Escalation on decommissioning cost estimate (applicable to December 31,1998):

N.J. = 5.50%

PA = 6.00%

b. After tax rate of earnings on decommissioning funds: 6.95 %

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. TMI-l Page 2 of 2 5.

Any contracts upon which the licensee is relying pursuant to 10 CFR 50.75 (e) (1) (v). -

Currently, the TMI-l decommissioring trust ftmd does not rely on purchase power contracts for funding.

6. -

Any modifications to a licensee's current methoo of providing financial assurance occurring since the last submitted report. - None.

7.

Any materid changes to trust agreements.

a. Trustees have changed in October 1990 from Midlantic National Bank to Bank of New York, from York Bank to Bank of New York, and from Pennbank to 4

Bank of New York.

b. The trust has been amended on March 1,1994, December 1,1996, and October 19, 1998 to allow commingling of e.ssets, incorporate Section 468A language, and to provide hedging capabilities, respectively, to provide increased investment flexibility.

c. The current list of.avestment managers is as follows:

(1) NISA March 1994

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(2) Bank of New York March 1994

)

(3) RCM March 1994 (4) Nuveen March 1994 (5) Bankers Trust October 1990 l

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TM1-2 NRC Decommissioning Funding Status Report 1.

Decommissioning fund estimate, pursuant tol0 CFR 50.75 (b) and (c). (1995 TMI-2 site specific deconunissioning study escalated to 1998 dollars.)

$455.000.000 a.

Radiological

$421.000.000 b.

Non-Radiological 34.000.000 2.

Amount accumulated at the end of the calende year preceding the date of the report for items included in 10 CFR 50.75 (b) and (c). (Accumulated as of December 31,1998.)

$274.894.000 3.

3chedule of the annual amounts remaining to be collected for items in 10 CFR 50.75 (b) and (c).

a. Amount remaining

$180.106.000

b. Annual rate collections in effect as of December 31,1998

$ 10.275.000

c. Number ofyears to collect 15.25 4.

Assumptions used regarding escalation in decommissioning cost, rates of earnings on decommissioning funds, and rates of other factors used in funding projections; l

a. Escalation on decommissioning cost estimate j

(applicable to December 31,1998):

N. J. = 5.50%

PA = 6.00%

b. After tax rate of earnings on decommissioning funds: 6.95 %

)

A TMI-2 Page 2 df 2 5.

' Any contracts upon which the licensee is relying pursuant to 10 CFR 50.75 (e)(1) (v). -

Currently, the TMI 2 decommissioning trust fund does not rely on purchase power contracts for funding.

' 6.

Any modifications to a licensee's current method of providing financial assurance occurring since the last submitted report. - None.

7.

Any material changes to trust agreements.

a. Trustees have changed in October 1990 from Midlantic National Bank to Bank of New York, from York Bank to Bank of New York, and from Pennbank to Bank of New York.

b. The trust has been amended on March 1,1994 and December 1,1996 to allow -

commingling of assets, and incorporate Section 468A language, respectively, to provide increased investment flexibility.

c The current list ofinvestment managers is as follows:

j (1) NISA March 1994 (2) Bank of New York March 1994 (3) RCM March 1994 (4) Nuveen March 1994 (5) Bankers Trust October 1990

SAXTON NRC Decommissioning Funding Status Report 1.

' Decommissioning fund estimate, pursuant to 10 CFR 50.75 (b) and (c). (1998 Saxton site specific

.Jecommissioning study in 1998 dollars.)

$ 36.000.000 2.

Amount accumulated at the end of the c:.lendar year preceding the date of the report for items included in 10 CFR 50.75 (b) and (c) (Accumulated as of December 31,1998.)

$ 25.861.000 Disbursed through December 31,1998

$ 20.407.000 3.

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

a.

Amount remaining

$ 10.139.000

b. Annual rate collections in effect as of December 31,1998

$ 2.486.000

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c. Number ofyears to collect 6.5 4.

Assumptions used rego; ding escalation in decommissioning cost, rates of earnings on decommissioning funds, and rates of other factors used in funding projections; a.- Escalation on decommissioning cost estimate = 6.00% (applicable to December 31,1998)

b. After tax rate of earnings on decommissioning funds: 6.00%

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' tansyh'ania collections ceased December 31,1998. New Jersey collections continue at an annual rate of $175,(XR l

Any funding shortfall will be borne by tim sinreholders.

2 Although Saxton decommissioning is estimated to be completed in the first quarter of 2001, New Jctrey collecticas are

. expected to continue for 6.5 years.

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. Saxton Page 2of 2 5.

Any contracts upon which the licensee is relying pursuant to 10 CFR 50.75 (e) (1) (v). -

Currently, the Saxton deconunissioning trust fund does not rely on purchase power contracts for funding.

6.

Any modifications to a licensee's current method of providing financial assurance occurring since the last submitted report. - None.

7.

Any material changes to trust agreements.

a.

Tmstee has been changed from Hamilton Bank to First Union as a result of a bank merger.

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b. N/A.

c.~ The current investment manager is First Union.

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