NL-23-0013, Response to Request for Additional Information Related to 10CFR 50.75 Decommissioning Funding Assurance Requirements
| ML23030B913 | |
| Person / Time | |
|---|---|
| Site: | Vogtle  |
| Issue date: | 01/30/2023 |
| From: | Gayheart C Southern Nuclear Operating Co |
| To: | Office of Nuclear Reactor Regulation, Document Control Desk |
| References | |
| NL-23-0013 | |
| Download: ML23030B913 (1) | |
Text
Regulatory Affairs 3535 Colonnade Parkway Birmingham, AL 35243 205 992 5000 tel January 30, 2023 Docket Nos.: 52-025 NL-23-0013 52-026 U. S. Nuclear Regulatory Commission ATTN: Document Control Desk Washington, D. C. 20555-0001 Vogtle Electric Generating Plant Units 3 and 4 Response to Request for Additional Information Related to 10 CFR 50.75 Decommissioning Funding Assurance Requirements Ladies and Gentlemen:
On March 12, 2020, in response to 10 CFR 50.75(e)(3), Southern Nuclear Operating Company (SNC), on behalf of itself and co-owners Georgia Power Company (GPC), Oglethorpe Power Corporation (OPC), Municipal Electric Authority of Georgia (MEAG) and the City of Dalton (Dalton Utilities) submitted Vogtle, Units 3 and 4 - Financial Assurance Requirements for Decommissioning (ML20099E527).
On December 1, 2022, the U. S. Nuclear Regulatory Commission (NRC) requested additional information. The responses by SNC and the Vogtle plant owners are enclosed.
If you have any questions, please contact Amy Chamberlain at 205.992.6361.
Respectfully submitted, Cheryl A. Gayheart Regulatory Affairs Director efb/cmg
Enclosures:
- 1. Response to NRC Request For Additional Information
- 2. Owner Decommissioning Financial Assurance Reports
- 3. SNC Position on 10 CFR 50.75(e)
SNC Report on Status of Decommissioning Funding NL-23-0013 Page 2 cc:
Regional Administrator - Region ll VPO Project Manager - Vogtle 3 & 4 Senior Resident Inspector - Vogtle 3 & 4 SNC Record RType: PP1.001
Vogtle Electric Generating Plant Units 3 and 4 Response to Request for Additional Information Related to 10 CFR 50.75 Decommissioning Funding Assurance Requirements Response to NRC Request For Additional Information
NL-23-0013 E1-1 NRC RAI #1 In order for staff to make a determination that financial assurance is being provided in accordance with 10 CFR 50.75(e)(3), please provide one or more of the following for each licensed owner:
- 1. A schedule of future contributions for VEGP Units 3 and 4 into the external sinking fund that, when compounded at a real rate of return of 2 percent as allowed by NRC regulation or other real rate of return as would be authorized by the public service commission or other rate-setting authority, will meet the minimum formula amount in 10 CFR 50.75. To demonstrate Decommissioning Funding Assurance (DFA) and compliance with 10 CFR 50.75(e)(3), the aggregate amount of the owners contributions should be equal to or greater than the minimum amount in 10 CFR 50.75 for each unit ($513 million), and the licensees should confirm that initial contributions have been made to the external sinking funds for each unit.
If the licensees are currently maintaining a zero balance in the external sinking funds (i.e., no contributions to date), in addition to the schedule of future contributions described above, please provide formal commitments from the public service commission or other rate-setting authority to fund the external sinking funds for VEGP Units 3 and 4.
Response
See Enclosure 2 for responses from GPC, OPC, MEAG, and Dalton Utilities (Owners).
As explained in Enclosure 3, SNC does not agree with Staffs premise for this RAI and therefore does not agree that the requested information is required at this time. During conversations with Staff, SNC emphasized that compliance with this RAI would require SNC and the Owners to prepare this information prematurely - given that the decommissioning funding report required by 10 CFR 50.75 will be submitted in March 2023. Without waiving or conceding this position, SNC agreed to respond to the RAI to resolve Staffs issue. As noted and acknowledged during discussions between SNC and Staff, to develop this response, SNC and the Owners were required to use estimates and assumptions that may change between this submission and the March 2023 filing. This RAI response is not meant to satisfy the biennial filing requirement under 10 CFR 50.75(f)(1) and does not create binding commitments as to the annual deposit amounts. During those same discussions, Staff inquired as to the pending disputes between certain of the Owners regarding potential transfer of a small ownership percentage of Plant Vogtle from the other Owners to Georgia Power. If an ownership interest is transferred, SNC and the Owners will undertake all necessary steps to comply with the applicable regulatory requirements. Such a transfer would have an impact on the decommissioning funding calculations for the affected owners and the related schedule and amounts of deposits. Until that time, the Owners will provide funding assurance in accordance with their existing ownership percentages.
NRC RAI #2
- 2. In the absence of a formal commitment, a detailed discussion regarding the process and timeline for each owners interaction with the public service commission or other rate-setting authority regarding obtaining official commitment to fund the external sinking funds for VEGP Units 3 and 4. This discussion should demonstrate that the licensees have made a good-faith
NL-23-0013 E1-2 effort to obtain rate relief to cover their respective obligations under 10 CFR 50.75(e)(3) and have informed their rate regulators of these obligations. The schedule of future contributions described in RAI 1 should also be provided.
Response
See Enclosure 2 for GPC, OPC, MEAG, and Dalton Utilities.
NRC RAI #3
- 3. If 1 and 2 (above) cannot be provided, DFA using one or more funding assurance methods described in 10 CFR 50.75(e)(1) should be provided or a request for exemption from the regulations should be submitted in accordance with 10 CFR 50.12.
Response
Not applicable.
Vogtle Electric Generating Plant Units 3 and 4 Response to Request for Additional Information Related to 10 CFR 50.75 Decommissioning Funding Assurance Requirements Owner Decommissioning Financial Assurance Reports
NL-23-0013 Georgia Power Company Ownership Percentage - 45.7%
Unit 3 Unit 4 2022 preliminary estimate of the NRC minimum formula amount0F1
$580,000,000
$580,000,000 The GPC percentage share of the NRC minimum formula amount
$265,060,000
$265,060,000 The amount of trust funds accumulated as of March 12, 2020
$0
$0 The amount of trust funds accumulated as of December 31, 2022
$6,939,0981F2
$02F3 The amounts scheduled to be collected annually over the life of the plant
$6,939,0983F4
$7,143,9324F5 The amount of trust funds projected to be accumulated at license termination5F6
$833,967,000
$860,945,000 The projected NRC minimum at license termination6F7
$784,544,199
$809,349,505 1 At the time of SNCs letter ND-20-0243 dated March 12, 2020, the NRC minimum formula amount (MFA) was calculated at $512,596,343. At the time of SNCs letter ND-21-0370 dated April 22, 2021, the NRC MFA was calculated at $513,107,466. At the time of SNCs 2021 annual calculation performed in March 2022, the NRC MFA was calculated at $534,415,879. For purposes of this letter, SNC has estimated a preliminary 2022 NRC MFA of $580,000,000 to be used for the owner funding plans.
2 For Vogtle Unit 3, on December 29, 2022, contributions of $6,223,846 (qualified) and $715,252 (non-qualified) = $6,939,098 were deposited in the trust.
3 For Vogtle Unit 4, the initial contribution will be deposited by the end of the year in which fuel is first loaded into the Unit 4 reactor, if practicable depending on the actual date.
4 For Vogtle Unit 3, on November 15, 2021, an Order Adopting Stipulation was filed in Georgia Public Service Commission Docket# 43838. The order adopts an allocation of the deemed prudent amount of
$3,569M to Unit 3 and Common, resulting in a base rate increase of $2,100M the month after Unit 3 reaches commercial operation. Included in these amounts are the Unit 3 decommissioning funds in the amount of $6.85M. Of this 6.85M, $6.22M is designated for decommissioning at license termination of the reactor and an Independent Spent Fuel Storage Installation (ISFSI). The remaining $0.63M is designated for funding the management of spent fuel following permanent cessation of reactor operations. This amount is not included in the $6.939M reported above and is not intended to be committed to or relied upon for purposes of radiological decommissioning funding. Prior to implementing the rate adjustment, GPC will update the numbers based on the actual in-service date for Unit 3. To provide further financial assurance that the schedule of contributions will exceed the NRC minimum, GPC has elected to increase the annual contribution above the PSC-approved amount by an additional $715,252 prior to obtaining PSC approval for this additional amount. The funding plan is attached and is based on estimated assumptions for inflation and earnings. The funding plan is subject to change.
5 For Vogtle Unit 4, GPC estimates that the annual contribution would be $7.144 million per year. The
$7.144M is only an estimate because the Georgia PSC has not issued an order for Vogtle Unit 4, and Georgia Power has not yet filed its proposed Unit 4 NRC nuclear decommissioning costs for recovery from the Georgia PSC. GPC expects the Georgia PSCs order on decommissioning cost recovery to be issued prior to commercial operation of Unit 4. The funding plan is attached and is based on estimated assumptions for inflation and earnings. The funding plan is subject to change.
6 Assuming 4.75% after-tax earnings and Unit 3 license termination in 2062. Assuming 4.76% after-tax earnings and Unit 4 license termination in 2063.
7 Assuming a 2.75% escalation rate for Unit 3 for 40 years and a 2.76% escalation rate for Unit 4 for 41 years. Totaling the funds projected to be available for decommissioning Unit 3 and Unit 4 ($1,694,912,000),
the projected NDT funds exceed the projected NRC minimum total ($1,593,893,704) by $101,018,296.
GPC is collecting funds in this trust for both 10 CFR 50.75 and 10 CFR 72.30 license termination.
(
Amounts In Thousands)
92*7/(8QLW
BEG OF Adjusted END OF YEAR FUND FUND Annual YEAR FUND BAL EARNINGS CONTRIB Expend.
FUND BAL 4.75% Earnings prior to Decommissioning 2.75% Earnings during substantial Decommissioning 2.75% Earnings after substantial Decommissioning 2022 1
6,939 6,940 2023 6,940 331 6,939 14,210 2024 14,210 676 6,939 21,825 2025 21,825 1,038 6,939 29,803 2026 29,803 1,417 6,939 38,159 2027 38,159 1,815 6,939 46,913 2028 46,913 2,231 6,939 56,083 2029 56,083 2,667 6,939 65,688 2030 65,688 3,123 6,939 75,750 2031 75,750 3,601 6,939 86,291 2032 86,291 4,102 6,939 97,332 2033 97,332 4,627 6,939 108,898 2034 108,898 5,177 6,939 121,014 2035 121,014 5,753 6,939 133,706 2036 133,706 6,356 6,939 147,001 2037 147,001 6,988 6,939 160,928 2038 160,928 7,650 6,939 175,517 2039 175,517 8,343 6,939 190,799 2040 190,799 9,070 6,939 206,808 2041 206,808 9,830 6,939 223,578 2042 223,578 10,628 6,939 241,144 2043 241,144 11,462 6,939 259,546 2044 259,546 12,337 6,939 278,822 2045 278,822 13,253 6,939 299,015 2046 299,015 14,213 6,939 320,167 2047 320,167 15,218 6,939 342,324 2048 342,324 16,272 6,939 365,535 2049 365,535 17,375 6,939 389,849 2050 389,849 18,530 6,939 415,318 2051 415,318 19,741 6,939 441,998 2052 441,998 21,009 6,939 469,947 2053 469,947 22,337 6,939 499,223 2054 499,223 23,729 6,939 529,891 2055 529,891 25,187 6,939 562,017 2056 562,017 26,714 6,939 595,670 2057 595,670 28,313 6,939 630,922 2058 630,922 29,989 6,939 667,850 2059 667,850 31,744 6,939 706,533 2060 706,533 33,582 6,939 747,054 2061 747,054 35,508 6,939 789,501 2062 789,501 37,526 6,939 833,967 2063 833,967 21,994 6,939 70,173 792,726 2064 792,726 19,512 167,912 644,327 2065 644,327 15,212 183,545 475,994 2066 475,994 10,978 154,431 332,541 2067 332,541 7,482 121,523 218,500 2068 218,500 4,405 116,965 105,940 2069 105,940 2,587 23,935 84,592 2070 84,592 1,901 31,079 55,414 2071 55,414 1,363 11,807 44,970 2072 44,970 1,214 1,775 44,409 2073 44,409 1,200 1,605 44,005 2074 44,005 597 44,602 (0)
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(Amounts In Thousands)
VOGTLE 8QLW4 BEG OF Adjusted END OF YEAR FUND FUND Annual YEAR Year FUND BAL EARNINGS CONTRIB Expend.
FUND BAL 4.76% Earnings prior to Decommissioning 2.76% Earnings during substantial Decommissioning 2.76% Earnings after substantial Decommissioning 2022 2023 1
7,144 7,145 2024 7,145 341 7,144 14,630 2025 14,630 698 7,144 22,472 2026 22,472 1,071 7,144 30,687 2027 30,687 1,463 7,144 39,294 2028 39,294 1,873 7,144 48,311 2029 48,311 2,302 7,144 57,757 2030 57,757 2,752 7,144 67,654 2031 67,654 3,224 7,144 78,022 2032 78,022 3,718 7,144 88,884 2033 88,884 4,235 7,144 100,263 2034 100,263 4,777 7,144 112,184 2035 112,184 5,345 7,144 124,674 2036 124,674 5,940 7,144 137,758 2037 137,758 6,564 7,144 151,466 2038 151,466 7,217 7,144 165,826 2039 165,826 7,901 7,144 180,871 2040 180,871 8,618 7,144 196,633 2041 196,633 9,369 7,144 213,145 2042 213,145 10,155 7,144 230,444 2043 230,444 10,979 7,144 248,567 2044 248,567 11,843 7,144 267,554 2045 267,554 12,747 7,144 287,445 2046 287,445 13,695 7,144 308,284 2047 308,284 14,688 7,144 330,115 2048 330,115 15,728 7,144 352,987 2049 352,987 16,817 7,144 376,948 2050 376,948 17,959 7,144 402,051 2051 402,051 19,155 7,144 428,349 2052 428,349 20,407 7,144 455,901 2053 455,901 21,720 7,144 484,765 2054 484,765 23,095 7,144 515,004 2055 515,004 24,536 7,144 546,683 2056 546,683 26,045 7,144 579,872 2057 579,872 27,626 7,144 614,642 2058 614,642 29,282 7,144 651,069 2059 651,069 31,018 7,144 689,230 2060 689,230 32,836 7,144 729,210 2061 729,210 34,741 7,144 771,095 2062 771,095 36,736 7,144 814,975 2063 814,975 38,826 7,144 860,945 2064 860,945 22,950 7,144 61,309 829,729 2065 829,729 21,089 133,448 717,371 2066 717,371 17,233 187,768 546,836 2067 546,836 12,711 173,945 385,602 2068 385,602 8,646 145,613 248,634 2069 248,634 4,955 138,710 114,880 2070 114,880 2,277 65,001 52,156 2071 52,156 1,292 10,856 42,591 2072 42,591 1,155 1,609 42,137 2073 42,137 1,145 1,453 41,829 2074 41,829 570 42,399 (0)
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NL-23-0013 Oglethorpe Power Corporation Ownership Percentage - 30%
Unit 3 Unit 4 2022 preliminary estimate of the NRC minimum formula amount7F8
$580,000,000
$580,000,000 The OPC percentage share of the NRC minimum formula amount
$174,000,000
$174,000,000 The amount of trust funds accumulated as of March 12, 2020
$0
$0 The amount of trust funds accumulated as of December 31, 2022
$2,389,4628F9
$09F10 The amounts scheduled to be collected annually over the life of the plant10F11
$4,778,925
$5,209,289 The amount of trust funds projected to be accumulated at license termination11F12
$549,666,050
$602,086,298 The projected NRC minimum at license termination12F13
$515,619,897
$532,145,345 8 At the time of SNCs letter ND-20-0243 dated March 12, 2020, the NRC minimum formula amount (MFA) was calculated at $512,596,343. At the time of SNCs letter ND-21-0370 dated April 22, 2021, the NRC MFA was calculated at $513,107,466. At the time of SNCs 2021 annual calculation performed in March 2022, the NRC MFA was calculated at $534,415,879. For purposes of this letter, SNC has estimated a preliminary 2022 NRC MFA of $580,000,000.
9 In December 2022, Oglethorpe made its first Unit 3 contribution.
10 OPC currently anticipates depositing $2.60 million for Unit 4 after fuel is loaded for that Unit.
11 Attached is OPCs current projected schedule of its future contributions. The schedule is subject to change. OPC is an electric cooperative that operates on a not-for-profit basis. It was formed and operates under Title 46 of the Georgia code, the Georgia Electric Membership Corporation Act. By statute, O.C.G.A. §46-3-340, OPC is legally required to set its rates and charges for electric energy and other services furnished by the electric cooperative so that such rates and charges shall be sufficient at all times to cover the cooperatives expenses, the payment of principal and interest on its debt, and to establish and maintain reasonable reserves.
These expenses include any contributions OPC is required to make to its external sinking fund for Vogtle Units 3 and 4. Each year, OPCs Board of Directors establishes (and adjusts mid-year) the corporations budget which is then billed to, and collected from, OPCs thirty-eight (38) member distribution cooperatives on a monthly basis pursuant to a formulaic rate. Each of OPCs member distribution cooperatives is required to pay the amount billed to them by OPC pursuant to a wholesale power contract between OPC and each member. OPCs formulaic rate collects 100%
of the corporations fixed and variable costs incurred by the corporation in any given year. OPCs required contributions to its external sinking fund for Vogtle Units 3 and 4 form part of these fixed costs.
12 See attached OPC funding plan for assumptions and details.
13 See attached OPC funding plan for assumptions and details. Totaling the funds projected to be available for decommissioning Unit 3 and Unit 4 ($1,151,752,348), the projected NDT funds exceed the projected NRC minimum total ($1,047,765,242) by $103,987,106.
(
NRC MFA - 10CFR50.75 GPC Ownership 45.70%
Dalton Ownership 1.60%
OPC Ownership 30.00%
- MEAG Ownership 22.70%
Total 100.00%
100% Ownership 100% Ownership Base Year 2022 Base Year 2022 Unit 3 NRC MFA
$580,000,000 Unit 4 NRC MFA
$580,000,000 Unit 3 Escalation 2.753%
Unit 4 Escalation 2.764%
Unit 3 Real Return 2.000%
Unit 4 Real Return 2.000%
Unit 3 Nominal Return 4.753%
Unit 4 Nominal Return 4.764%
Pre-COD Funding Year 2022 Pre-COD Funding Year 2023 Unit 3 COD 2023 Unit 4 COD 2024 Unit 3 End of License 2062 Unit 4 End of License 2063 OPC Ownership Base Year Growth Rate Future Value Required Ordinary Annuity Base Year Growth Rate Future Value Required Ordinary Annuity NRC MFA
$174,000,000 2.753%
$515,619,897
$174,000,000 2.764%
$532,145,345 Pre-COD Contribution
$2,389,462 4.753%
$15,309,426
$2,604,644 4.764%
$16,758,350 Unfunded Obligation/Annuity Calculation
$500,310,471
$4,647,797
$515,386,995
$4,775,510 Expected Annual Contribution (Prorated Pre-COD/In 1st Year of Operation)
$4,778,925
$5,209,289 Funded Status Relative to NRC MFA at End of License Period SURPLUS SURPLUS Oglethorpe Specific Calculations Vogtle 3 Vogtle 4 Liability Assets Liability Assets NRC MFA Beginning Balance Earnings Contribution Ending Balance NRC MFA Beginning Balance Earnings Contribution Ending Balance 2022
$174,000,000
$0
$0
$2,389,462
$2,389,462
$174,000,000
$0
$0
$0
$0 2023
$178,790,220
$2,389,462
$113,571
$3,584,194
$6,087,227
$178,809,360
$0
$0
$2,604,644
$2,604,644 2024
$183,712,315
$6,087,227
$289,326
$4,778,925
$11,155,478
$183,751,651
$2,604,644
$124,085
$3,906,967
$6,635,696 2025
$188,769,915
$11,155,478
$530,220
$4,778,925
$16,464,623
$188,830,546
$6,635,696
$316,125
$5,209,289
$12,161,110 2026
$193,966,751
$16,464,623
$782,564
$4,778,925
$22,026,111
$194,049,823
$12,161,110
$579,355
$5,209,289
$17,949,754 2027
$199,306,655
$22,026,111
$1,046,901
$4,778,925
$27,851,937
$199,413,360
$17,949,754
$855,126
$5,209,289
$24,014,169 2028
$204,793,567
$27,851,937
$1,323,803
$4,778,925
$33,954,665
$204,925,145
$24,014,169
$1,144,035
$5,209,289
$30,367,493 2029
$210,431,534
$33,954,665
$1,613,865
$4,778,925
$40,347,455
$210,589,276
$30,367,493
$1,446,707
$5,209,289
$37,023,489 2030
$216,224,714
$40,347,455
$1,917,715
$4,778,925
$47,044,095
$216,409,964
$37,023,489
$1,763,799
$5,209,289
$43,996,578 2031
$222,177,381
$47,044,095
$2,236,006
$4,778,925
$54,059,025
$222,391,535
$43,996,578
$2,095,997
$5,209,289
$51,301,863 2032
$228,293,924
$54,059,025
$2,569,425
$4,778,925
$61,407,376
$228,538,437
$51,301,863
$2,444,021
$5,209,289
$58,955,173 2033
$234,578,856
$61,407,376
$2,918,693
$4,778,925
$69,104,993
$234,855,239
$58,955,173
$2,808,624
$5,209,289
$66,973,087 2034
$241,036,812
$69,104,993
$3,284,560
$4,778,925
$77,168,479
$241,346,638
$66,973,087
$3,190,598
$5,209,289
$75,372,974 2035
$247,672,555
$77,168,479
$3,667,818
$4,778,925
$85,615,222
$248,017,459
$75,372,974
$3,590,768
$5,209,289
$84,173,031 2036
$254,490,981
$85,615,222
$4,069,291
$4,778,925
$94,463,438
$254,872,662
$84,173,031
$4,010,003
$5,209,289
$93,392,323 2037
$261,497,117
$94,463,438
$4,489,847
$4,778,925
$103,732,210
$261,917,342
$93,392,323
$4,449,210
$5,209,289
$103,050,822 2038
$268,696,133
$103,732,210
$4,930,392
$4,778,925
$113,441,527
$269,156,738
$103,050,822
$4,909,341
$5,209,289
$113,169,453 2039
$276,093,338
$113,441,527
$5,391,876
$4,778,925
$123,612,328
$276,596,230
$113,169,453
$5,391,393
$5,209,289
$123,770,134 2040
$283,694,187
$123,612,328
$5,875,294
$4,778,925
$134,266,547
$284,241,350
$123,770,134
$5,896,409
$5,209,289
$134,875,833 2041
$291,504,288
$134,266,547
$6,381,689
$4,778,925
$145,427,161
$292,097,781
$134,875,833
$6,425,485
$5,209,289
$146,510,606 2042
$299,529,401
$145,427,161
$6,912,153
$4,778,925
$157,118,239
$300,171,363
$146,510,606
$6,979,765
$5,209,289
$158,699,661 2043
$307,775,446
$157,118,239
$7,467,830
$4,778,925
$169,364,994
$308,468,100
$158,699,661
$7,560,452
$5,209,289
$171,469,401 2044
$316,248,504
$169,364,994
$8,049,918
$4,778,925
$182,193,837
$316,994,158
$171,469,401
$8,168,802
$5,209,289
$184,847,493 2045
$324,954,825
$182,193,837
$8,659,673
$4,778,925
$195,632,435
$325,755,876
$184,847,493
$8,806,135
$5,209,289
$198,862,916 2046
$333,900,831
$195,632,435
$9,298,410
$4,778,925
$209,709,770
$334,759,769
$198,862,916
$9,473,829
$5,209,289
$213,546,034 2047
$343,093,121
$209,709,770
$9,967,505
$4,778,925
$224,456,200
$344,012,529
$213,546,034
$10,173,333
$5,209,289
$228,928,657 2048
$352,538,475
$224,456,200
$10,668,403
$4,778,925
$239,903,528
$353,521,035
$228,928,657
$10,906,161
$5,209,289
$245,044,107 2049
$362,243,859
$239,903,528
$11,402,615
$4,778,925
$256,085,068
$363,292,357
$245,044,107
$11,673,901
$5,209,289
$261,927,297 2050
$372,216,432
$256,085,068
$12,171,723
$4,778,925
$273,035,716
$373,333,757
$261,927,297
$12,478,216
$5,209,289
$279,614,802 2051
$382,463,551
$273,035,716
$12,977,388
$4,778,925
$290,792,029
$383,652,702
$279,614,802
$13,320,849
$5,209,289
$298,144,941 2052
$392,992,772
$290,792,029
$13,821,345
$4,778,925
$309,392,299
$394,256,863
$298,144,941
$14,203,625
$5,209,289
$317,557,855 2053
$403,811,863
$309,392,299
$14,705,416
$4,778,925
$328,876,640
$405,154,123
$317,557,855
$15,128,456
$5,209,289
$337,895,600 2054
$414,928,804
$328,876,640
$15,631,507
$4,778,925
$349,287,071
$416,352,583
$337,895,600
$16,097,346
$5,209,289
$359,202,235 2055
$426,351,794
$349,287,071
$16,601,615
$4,778,925
$370,667,611
$427,860,568
$359,202,235
$17,112,394
$5,209,289
$381,523,919 2056
$438,089,259
$370,667,611
$17,617,832
$4,778,925
$393,064,367
$439,686,634
$381,523,919
$18,175,799
$5,209,289
$404,909,007 2057
$450,149,856
$393,064,367
$18,682,349
$4,778,925
$416,525,642
$451,839,573
$404,909,007
$19,289,865
$5,209,289
$429,408,161 2058
$462,542,482
$416,525,642
$19,797,464
$4,778,925
$441,102,031
$464,328,419
$429,408,161
$20,457,005
$5,209,289
$455,074,455 2059
$475,276,276
$441,102,031
$20,965,580
$4,778,925
$466,846,535
$477,162,456
$455,074,455
$21,679,747
$5,209,289
$481,963,491 2060
$488,360,632
$466,846,535
$22,189,216
$4,778,925
$493,814,676
$490,351,226
$481,963,491
$22,960,741
$5,209,289
$510,133,521 2061
$501,805,200
$493,814,676
$23,471,012
$4,778,925
$522,064,612
$503,904,534
$510,133,521
$24,302,761
$5,209,289
$539,645,571 2062
$515,619,897
$522,064,612
$24,813,731
$2,787,706
$549,666,050
$517,832,456
$539,645,571
$25,708,715
$5,209,289
$570,563,575 2063
$532,145,345
$570,563,575
$27,181,649
$4,341,074
$602,086,298 2064 This data is based on estimated assumptions provided at the time of submittal and is subject to change.
- See note regarding changes to ownership in Answer #1
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(QFORVXUH
NL-23-0013 Municipal Electric Authority of Georgia Ownership Percentage - 22.7%
Unit 3 Unit 4 2022 preliminary estimate of the NRC minimum formula amount13F14
$580,000,000
$580,000,000 The MEAG percentage share of the NRC minimum formula amount
$131,660,000
$131,660,000 The amount of trust funds accumulated as of March 12, 2020
$0
$0 The amount of trust funds accumulated as of December 31, 2022
$0
$0 The amounts scheduled to be collected annually over the life of the plant14F15
$4,910,000
$5,376,000 The amount of trust funds projected to be accumulated at license termination15F16
$482,687,000
$528,710,000 The projected NRC minimum at license termination16F17
$390,152,389
$402,656,644 14 At the time of SNCs letter ND-20-0243 dated March 12, 2020, the NRC minimum formula amount (MFA) was calculated at $512,596,343. At the time of SNCs letter ND-21-0370 dated April 22, 2021, the NRC MFA was calculated at $513,107,466. At the time of SNCs 2021 annual calculation performed in March 2022, the NRC MFA was calculated at $534,415,879. For purposes of this letter, SNC has estimated a preliminary 2022 NRC MFA of $580,000,000.
15 The MEAG Power Board has authorized and directed MEAG Power to take appropriate action to ensure that the Vogtle Units 3 & 4 decommissioning costs are paid in full in accordance with the requirements of the NRC. See the attached 40-year schedule that covers planned contributions covering both Vogtle Unit 3 and Vogtle Unit 4.
16 See attached funding plan, which is subject to change. The funding plan is based on an assumption of 4.22% for earnings growth.
17 Assuming a 2.753% escalation rate for Unit 3 and a 2.764% escalation rate for Unit 4 for 40 years. Totaling the funds projected to be available for decommissioning Unit 3 and Unit 4
($1,011,397,000), the projected NDT funds exceed the projected NRC minimum total
($792,809,033) by $218,587,967.
(
Calendar Balance at Balance at Year Beg. of Year Contributions Earnings Fees End of Year 2023 3,682 58 3,740 2024 3,740 4,910 261 (26) 8,885 2025 8,885 4,910 478 (26) 14,247 2026 14,247 4,910 704 (33) 19,827 2027 19,827 4,910 940 (42) 25,635 2028 25,635 4,910 1,185 (50) 31,679 2029 31,679 4,910 1,440 (59) 37,969 2030 37,969 4,910 1,705 (69) 44,514 2031 44,514 4,910 1,981 (79) 51,326 2032 51,326 4,910 2,268 (90) 58,414 2033 58,414 4,910 2,567 (100) 65,791 2034 65,791 4,910 2,879 (112) 73,467 2035 73,467 4,910 3,202 (124) 81,455 2036 81,455 4,910 3,539 (136) 89,768 2037 89,768 4,910 3,890 (149) 98,419 2038 98,419 4,910 4,255 (162) 107,421 2039 107,421 4,910 4,635 (176) 116,790 2040 116,790 4,910 5,030 (190) 126,539 2041 126,539 4,910 5,441 (205) 136,684 2042 136,684 4,910 5,869 (221) 147,242 2043 147,242 4,910 6,314 (237) 158,228 2044 158,228 4,910 6,778 (254) 169,662 2045 169,662 4,910 7,260 (271) 181,560 2046 181,560 4,910 7,762 (290) 193,941 2047 193,941 4,910 8,284 (309) 206,826 2048 206,826 4,910 8,827 (328) 220,235 2049 220,235 4,910 9,393 (349) 234,188 2050 234,188 4,910 9,982 (370) 248,709 2051 248,709 4,910 10,594 (393) 263,820 2052 263,820 4,910 11,231 (416) 279,545 2053 279,545 4,910 11,895 (440) 295,910 2054 295,910 4,910 12,585 (465) 312,939 2055 312,939 4,910 13,303 (491) 330,661 2056 330,661 4,910 14,051 (518) 349,104 2057 349,104 4,910 14,829 (546) 368,296 2058 368,296 4,910 15,638 (576) 388,268 2059 388,268 4,910 16,481 (606) 409,052 2060 409,052 4,910 17,357 (638) 430,681 2061 430,681 4,910 18,270 (671) 453,189 2062 453,189 4,910 19,219 (705) 476,613 2063 476,613 1,227 5,032 (185) 482,687 MEAG POWER Decommissioning Funding Plan Nuclear Decommissioning Fund - Vogtle Unit 3 (Dollars in Thousands)
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(QFORVXUH
Calendar Balance at Balance at Year Beg. of Year Contributions Earnings Fees End of Year 2023 2024 5,376 113 5,490 2025 5,490 5,376 345 (16) 11,195 2026 11,195 5,376 586 (26) 17,131 2027 17,131 5,376 836 (36) 23,307 2028 23,307 5,376 1,096 (46) 29,735 2029 29,735 5,376 1,368 (56) 36,423 2030 36,423 5,376 1,650 (66) 43,383 2031 43,383 5,376 1,943 (77) 50,625 2032 50,625 5,376 2,249 (88) 58,162 2033 58,162 5,376 2,567 (100) 66,006 2034 66,006 5,376 2,898 (112) 74,167 2035 74,167 5,376 3,242 (125) 82,661 2036 82,661 5,376 3,600 (138) 91,500 2037 91,500 5,376 3,973 (152) 100,697 2038 100,697 5,376 4,361 (166) 110,269 2039 110,269 5,376 4,765 (180) 120,230 2040 120,230 5,376 5,185 (196) 130,595 2041 130,595 5,376 5,622 (212) 141,382 2042 141,382 5,376 6,077 (228) 152,607 2043 152,607 5,376 6,550 (246) 164,288 2044 164,288 5,376 7,043 (264) 176,444 2045 176,444 5,376 7,556 (282) 189,094 2046 189,094 5,376 8,089 (302) 202,258 2047 202,258 5,376 8,645 (322) 215,957 2048 215,957 5,376 9,222 (343) 230,213 2049 230,213 5,376 9,824 (365) 245,049 2050 245,049 5,376 10,450 (387) 260,487 2051 260,487 5,376 11,101 (411) 276,554 2052 276,554 5,376 11,778 (436) 293,273 2053 293,273 5,376 12,484 (461) 310,671 2054 310,671 5,376 13,218 (488) 328,777 2055 328,777 5,376 13,981 (516) 347,619 2056 347,619 5,376 14,776 (545) 367,227 2057 367,227 5,376 15,603 (575) 387,632 2058 387,632 5,376 16,464 (606) 408,867 2059 408,867 5,376 17,359 (638) 430,964 2060 430,964 5,376 18,291 (672) 453,960 2061 453,960 5,376 19,261 (707) 477,891 2062 477,891 5,376 20,271 (744) 502,794 2063 502,794 5,376 21,321 (782) 528,710 MEAG POWER Decommissioning Funding Plan Nuclear Decommissioning Fund - Vogtle Unit 4 (Dollars in Thousands)
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(QFORVXUH
NL-23-0013 Dalton Utilities Ownership Percentage - 1.6%
Unit 3 Unit 4 2022 preliminary estimate of the NRC minimum formula amount17F18
$580,000,000
$580,000,000 The Dalton percentage share of the NRC minimum formula amount
$9,280,000
$9,280,000 The amount of trust funds accumulated as of March 12, 2020
$0
$0 The amount of trust funds accumulated as of December 31, 2022
$175,000
$0 The amounts scheduled to be collected annually over the life of the plant
$300,00018F19
$300,00019F20 The amount of trust funds projected to be accumulated at license termination20F21
$35,249,532
$34,219,313 The projected NRC minimum at license termination21F22
$27,499,728
$28,256,795 18 At the time of SNCs letter ND-20-0243 dated March 12, 2020, the NRC minimum formula amount (MFA) was calculated at $512,596,343. At the time of SNCs letter ND-21-0370 dated April 22, 2021, the NRC MFA was calculated at $513,107,466. At the time of SNCs 2021 annual calculation performed in March 2022, the NRC MFA was calculated at $534,415,879. For purposes of this letter, SNC has estimated a preliminary 2022 NRC MFA of $580,000,000.
19 On January 23, 2023, the Dalton Utilities Board of Directors, who has rate-setting authority, authorized an annual contribution of $300,000 for Vogtle Unit 3 beginning in the year 2023 for a 40-year plant life.
20 On January 23, 2023, the Dalton Utilities Board of Directors authorized an annual contribution of $300,000 for Vogtle Unit 4 for a 40-year plant life with the first contribution to be deposited by the end of the year in which fuel is first loaded into the Unit 4 reactor, if practicable.
21 See attached funding plan, which is subject to change and assumes a 2.753% inflation rate for Unit 3, a 2.764% inflation rate for Unit 4, and a 2% real rate of return.
22 Assuming a 2.753% escalation rate for Unit 3 and a 2.764% escalation rate for Unit 4 for 40 years. Totaling the funds projected to be available for decommissioning Unit 3 and Unit 4
($69,468,845), the projected NDT funds exceed the projected NRC minimum total ($55,756,523) by $13,712,322.
(
Dalton Vogtle Unit 3 Decommissioning Funding Plan Schedule of Contributions Year Annual Payment Start Balance Earnings End Balance 2023
$300,000
$175,000.00
$8,317.75
$483,317.75 2024
$300,000
$483,317.75
$22,972.09
$806,289.84 2025
$300,000
$806,289.84
$38,322.96
$1,144,612.80 2026
$300,000
$1,144,612.80
$54,403.45
$1,499,016.25 2027
$300,000
$1,499,016.25
$71,248.24
$1,870,264.49 2028
$300,000
$1,870,264.49
$88,893.67
$2,259,158.16 2029
$300,000
$2,259,158.16
$107,377.79
$2,666,535.95 2030
$300,000
$2,666,535.95
$126,740.45
$3,093,276.40 2031
$300,000
$3,093,276.40
$147,023.43
$3,540,299.83 2032
$300,000
$3,540,299.83
$168,270.45
$4,008,570.28 2033
$300,000
$4,008,570.28
$190,527.35
$4,499,097.62 2034
$300,000
$4,499,097.62
$213,842.11
$5,012,939.73 2035
$300,000
$5,012,939.73
$238,265.03
$5,551,204.76 2036
$300,000
$5,551,204.76
$263,848.76
$6,115,053.52 2037
$300,000
$6,115,053.52
$290,648.49
$6,705,702.01 2038
$300,000
$6,705,702.01
$318,722.02
$7,324,424.03 2039
$300,000
$7,324,424.03
$348,129.87
$7,972,553.90 2040
$300,000
$7,972,553.90
$378,935.49
$8,651,489.39 2041
$300,000
$8,651,489.39
$411,205.29
$9,362,694.68 2042
$300,000
$9,362,694.68
$445,008.88
$10,107,703.56 2043
$300,000
$10,107,703.56
$480,419.15
$10,888,122.71 2044
$300,000
$10,888,122.71
$517,512.47
$11,705,635.18 2045
$300,000
$11,705,635.18
$556,368.84
$12,562,004.02 2046
$300,000
$12,562,004.02
$597,072.05
$13,459,076.08 2047
$300,000
$13,459,076.08
$639,709.89
$14,398,785.96 2048
$300,000
$14,398,785.96
$684,374.30
$15,383,160.26 2049
$300,000
$15,383,160.26
$731,161.61
$16,414,321.86 2050
$300,000
$16,414,321.86
$780,172.72
$17,494,494.58 2051
$300,000
$17,494,494.58
$831,513.33
$18,626,007.91 2052
$300,000
$18,626,007.91
$885,294.16
$19,811,302.07 2053
$300,000
$19,811,302.07
$941,631.19
$21,052,933.25 2054
$300,000
$21,052,933.25
$1,000,645.92
$22,353,579.17 2055
$300,000
$22,353,579.17
$1,062,465.62
$23,716,044.79 2056
$300,000
$23,716,044.79
$1,127,223.61
$25,143,268.40 2057
$300,000
$25,143,268.40
$1,195,059.55
$26,638,327.95 2058
$300,000
$26,638,327.95
$1,266,119.73
$28,204,447.67 2059
$300,000
$28,204,447.67
$1,340,557.40
$29,845,005.07 2060
$300,000
$29,845,005.07
$1,418,533.09
$31,563,538.16 2061
$300,000
$31,563,538.16
$1,500,214.97
$33,363,753.13 2062
$300,000
$33,363,753.13
$1,585,779.19
$35,249,532.32
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(QFORVXUH
Dalton Vogtle Unit 4 Decommissioning Funding Plan Schedule of Contributions Year Annual Payment Start Balance Earnings End Balance 2023
$300,000
$0.00
$0.00
$300,000.00 2024
$300,000
$300,000.00
$14,292.00
$614,292.00 2025
$300,000
$614,292.00
$29,264.87
$943,556.87 2026
$300,000
$943,556.87
$44,951.05
$1,288,507.92 2027
$300,000
$1,288,507.92
$61,384.52
$1,649,892.44 2028
$300,000
$1,649,892.44
$78,600.88
$2,028,493.31 2029
$300,000
$2,028,493.31
$96,637.42
$2,425,130.73 2030
$300,000
$2,425,130.73
$115,533.23
$2,840,663.96 2031
$300,000
$2,840,663.96
$135,329.23
$3,275,993.19 2032
$300,000
$3,275,993.19
$156,068.32
$3,732,061.51 2033
$300,000
$3,732,061.51
$177,795.41
$4,209,856.92 2034
$300,000
$4,209,856.92
$200,557.58
$4,710,414.50 2035
$300,000
$4,710,414.50
$224,404.15
$5,234,818.65 2036
$300,000
$5,234,818.65
$249,386.76
$5,784,205.41 2037
$300,000
$5,784,205.41
$275,559.55
$6,359,764.96 2038
$300,000
$6,359,764.96
$302,979.20
$6,962,744.16 2039
$300,000
$6,962,744.16
$331,705.13
$7,594,449.29 2040
$300,000
$7,594,449.29
$361,799.56
$8,256,248.86 2041
$300,000
$8,256,248.86
$393,327.70
$8,949,576.55 2042
$300,000
$8,949,576.55
$426,357.83
$9,675,934.38 2043
$300,000
$9,675,934.38
$460,961.51
$10,436,895.89 2044
$300,000 $10,436,895.89
$497,213.72
$11,234,109.61 2045
$300,000 $11,234,109.61
$535,192.98
$12,069,302.59 2046
$300,000 $12,069,302.59
$574,981.58
$12,944,284.17 2047
$300,000 $12,944,284.17
$616,665.70
$13,860,949.87 2048
$300,000 $13,860,949.87
$660,335.65
$14,821,285.52 2049
$300,000 $14,821,285.52
$706,086.04
$15,827,371.56 2050
$300,000 $15,827,371.56
$754,015.98
$16,881,387.54 2051
$300,000 $16,881,387.54
$804,229.30
$17,985,616.85 2052
$300,000 $17,985,616.85
$856,834.79
$19,142,451.63 2053
$300,000 $19,142,451.63
$911,946.40
$20,354,398.03 2054
$300,000 $20,354,398.03
$969,683.52
$21,624,081.55 2055
$300,000 $21,624,081.55
$1,030,171.25
$22,954,252.79 2056
$300,000 $22,954,252.79
$1,093,540.60
$24,347,793.40 2057
$300,000 $24,347,793.40
$1,159,928.88
$25,807,722.27 2058
$300,000 $25,807,722.27
$1,229,479.89
$27,337,202.16 2059
$300,000 $27,337,202.16
$1,302,344.31
$28,939,546.48 2060
$300,000 $28,939,546.48
$1,378,679.99
$30,618,226.47 2061
$300,000 $30,618,226.47
$1,458,652.31
$32,376,878.78 2062
$300,000 $32,376,878.78
$1,542,434.50
$34,219,313.28
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(QFORVXUH
Vogtle Electric Generating Plant Units 3 and 4 Response to Request for Additional Information Related to 10 CFR 50.75 Decommissioning Funding Assurance Requirements SNC Position on 10 CFR 50.75(e)
NL-23-0013 E3-1 SNC has concluded, via statement made by the Staff and the line of questioning presented in the preceding RAIs, that the Staff has taken the position that the Vogtle Owners, prior to making their March 2020 certification under 50.75(e)(3), were required to either make deposits and/or submit a ratemaking-body approved 40-year contribution schedule that meets the NRC minimum formula calculation submitted by SNC in November 2019. SNCs position is that an initial deposit and/or regulator-approved collection schedule prior to fuel load and commercial operations is not required by NRCs regulations.
Each of the Owners is an electric utility that, under Georgia law, is authorized to collect operational costs associated with Vogtle Units 3 and 4 (including funding for future decommissioning) via rates established by a rate-making body. In March 2020, none of the Owners had the necessary inputs, regulatory signoffs, or IRS submissions to calculate and begin making deposits toward a 40-year contribution schedule.
All of the Vogtle owners meet the electric utility definition under 50.2, and thus are authorized to rely exclusively on an external sinking fund as their sole source of decommissioning funding.
MEAG, Oglethorpe, and Dalton all set their own rates, while GPC requires Georgia PSC approval of rate collections. The Owners jurisdictional status as electric utilities, not a specific state regulatory authorization and formally-approved collection schedule, demonstrates compliance with decommissioning funding requirements in March 2020.
In its rulemaking that addressed widespread market restructuring and deregulation of nuclear utilities rates, the Commission explained that:
NRCs current financial assurance requirements for decommissioning nuclear power reactors are based on the premise that the reactors are owned by regulated or self-regulating entities that recover their decommissioning costs through a rate-setting process overseen by the applicable regulating body. This regulatory oversight provides reasonable assurance that such licensees will recover reactor decommissioning costs and continue paying into external sinking funds for decommissioning.
63 Fed. Reg. 50,465 (1998 Final Rule).
Similarly, in the policy statement that predated this rule, the Commission explained:
Because of the long history of effective rate regulatory oversight and recovery of safety-related expenses through rates, in the 1988 decommissioning rule... the NRC deferred to the PUCs and the Federal Energy Regulatory Commission (FERC) on the timing and liquidity of decommissioning trust fund deposits.
62 Fed. Reg. 44,072 (1997 Policy Statement).
The Commission has always assumed that rate regulated utilities will be able to recover their costs through cost-of-service ratemaking. That assumption underlies the 50.2 definition of electric utility and the preconditions to using an external sinking fund in 50.75(e)(ii). In the original decommissioning rule, the Commission stated because public utility commissions are to set a utilitys rates such that all reasonable costs of serving the public may be recovered... it is reasonable to assume that added costs [of decommissioning, even beyond the NRC formula] could be obtained if the [NRC formula] were too low.... (1988 rule, 53 Fed. Reg. 24,018). Electric utilities have always been presumed to be financially qualified as a result of their ability to recover costs through cost-of-service ratemaking.
NL-23-0013 E3-2 Accordingly, the Owners met the 50.75(e)(3) requirement by virtue of their jurisdictional status as electric utilities, which allows NRC to rely on the rate recovery process codified in Georgia law for purposes of finding that financial assurance is being provided as of March 2020.
Pursuant to 50.75(f)(1), the Owners will begin making biennial reports after the 52.103(g) finding that includes the amount of decommissioning funds accumulated to the end of the calendar year preceding the date of the report; a schedule of the annual amounts remaining to be collected; the assumptions used regarding rates of escalation in decommissioning costs, rates of earnings on decommissioning funds, and rates of other factors used in funding projections. This is the same information that NRC is requesting in the present RAIs. Neither NRC regulations nor guidance require that the pre-fuel load 50.75(e)(3) certification include the information required to be submitted in the first post-fuel load 50.75(f)(1) report.
Under Staffs view, in March 2020, the Owners should have submitted a 40-year collection schedule showing how they would fund to the minimum formula amount calculated as of November 2019.
While it is possible to build such a hypothetical contribution schedule, the Owners had no intention of using a backwards-looking schedule based on a formula calculation that is over 3 years out of date at the time of these RAIs, and therefore SNC has submitted, in response to the RAIs, preliminary estimates that must be finalized for the first post-fuel load 50.75(f)(1) report in March 2023.