ML25091A065
| ML25091A065 | |
| Person / Time | |
|---|---|
| Site: | Summer  |
| Issue date: | 03/30/2025 |
| From: | Nance S Santee Cooper |
| To: | Document Control Desk, Office of Nuclear Reactor Regulation |
| References | |
| Download: ML25091A065 (1) | |
Text
March 30, 2025 U. S. Nuclear Regulatory Commission ATTN: Document Control Desk 11555 Rockville Pike Rockville, MD 20852
Subject:
Virgil C. Summer Nuclear Station Unit I Docket No. 50/395 Operating License No. NPF-12 Report of Status of Decommissioning Funding Ladies and Gentlemen:
~~antee cooper*
The South Carolina Public Service Authority (Authority) and Dominion Energy South Carolina (DESC) have ownership interests of one-third and two-thirds, respectively, in the Virgil C. Summer Nuclear Station, Unit 1.
As provided in IO CFR § 50.75 (f)(I ), each power reactor licensee is required to report to the Nuclear Regulatory Commission (NRC) on a calendar year basis, beginning March 3 1, 1999, and every two years thereafter, the status of its decommissioning funding for each reactor or share of reactor it owns. DESC has advised the Authority that it will disclose the required information relative to its two-thirds ownership share in a separate submittal.
The Authority's one-third share using the NRC fonnula for the minimum funding required for license termination is approximately $178 million as of December 3 I, 2024. This one-third liability is funded by payments to an external sinking fund as provided for in 10 CFR § 50.75 and internal funds. As of December 31, 2024, the market value of the external trust was approximately $133 million (book value $160 million) and the market value of the Authority's internal fund, designated for spent fuel management and site restoration, was approximately $86 million (book value $97 million). This total exceeds the required value.
A site-specific decommissioning study completed in 2020 identified the total decommissioning costs for the site. Total site decommissioning includes license termination, spent fuel management and site restoration. The total costs identified by the study exceed the NRC fonnula for minimum funding requirements. Further, as the result of a 2006 settlement with the Department of Energy (DOE), the Authority expects to receive reimbursement for spent fuel management costs incurred that would have been avoided had the DOE met its contractual obligation to store spent fuel. The one-third liability exceeding the NRC minimum funding requirements (less DOE reimbursements) is estimated by the Authority to be approximately $251 million as of December 31, 2024 (Please see Attachment 1.)
If there are any questions concerning this report, please contact Steve Nance at (843) 761-8000, extension 4144.
Sincerely,
~
Steve Nance Director of Nuclear Production Development SN:PNP Attachments cc:
Laura Dudes Carey "Mac" Read, Jr.
Ed Miller Bee:
Mike Finissi One Riverwood Dnve I Moncks Corner, SC 29461-2901 I (843) 761-8000 I P.O. Box 2946101 I Moncks Corner, SC 29461-6101
Greg Lindamood Ken Lott Dan Manes Leslie Mull Steve Pelcher Lionel Richardson Suzanne Ritter Scott Smith Carmen Thomas
3el(a). The minimum decommissioning fund estimate, pursuant to 10 CFR § 50.75 (b) and (c).
Base Amount for PWR between 1,200 MWt and 3,400 MWt Estimated Cost (Year X)
(1986 $ Base Cost) (ALx + BEx + CBx)
~~antee cooper'
$178,355.987
($}00,520,000) {(.65 X 3.267) + (.}3 X 2.92}) + (.22 X }2.8}3)}
$535,067,960 Authority's one-third share of 2025 Estimated Cost = $178,355,987 Where:
1986 $ Base Cost p
Lx
.65
.13
.22 3.267 2.921 2.587 3.384 12.813 10 CFR § 50.75 (c)(2) 10 CFR § 50.75 (c)(2) 10 CFR § 50.75 (c)(2)
(Computed Below)
(Computed Below)
(Computed Below)
(Computed Below)
(NUREG 1307 Rev. 19)
($75,000,000 +.0088Pmillion)
($75,000,000 + 25,520,000)
$100,520,000 2,900MWt Base Lx (Dec 2005) x ECI(Qtr 4 2024) I 100 1.98 X 165 / 100 3.267 December 2024 Value / January 1986 Value 295.4 I 114.2 2.587 December 2024 Value / January 1986 Value 277.5 I 82.0 3.384
{(.58Px) + (.42Fx)}
{(.58 X 2.587) + (.42 X 3.384)}
(1.500 + 1.421) 2.921 Fourth Quarter 2024 I December 2024 values in the following Bureau of Labor Statistics indices were used to compute NRC minimum requirements:
Employment Cost Index - Total compensation, private industry, South region SeriesID: CIU2010000000220I Producer Price Index - Commodities (Industrial electric power)
Series ID: wpu0543 Producer Price Index - Commodities (Light fuel oils)
Series ID: wpu0573 One Riverwood Drive I Moncks Corner, SC 29461-2901 I (843) 761-8000 I
P.O. Box 2946101 I Moncks Corner, SC 29461-6101 l(b).
Escalation of the Authority's one-third share of the minimum funding requirement through the end of decommissioning.
- 2.
Cost categories Labor, Equipment & Materials, Burial, and Other were estimated in a site-specific decommissioning study. These costs were escalated through the end of the decommissioning period based on various indices and estimates. Ultimate decommissioning costs to be funded from the external trust are estimated at $542,197,291 in escalated dollars.
Market value of the external trust fund on December 31, 2024 for items included in 10 CFR § 50.75.
Book value of the external trust fund on December 31, 2024 for items included in 10 CFR § 50.75.
$133,037,262
$159,962.702
- 3.
Schedule of annual amounts remaining to be collected for items in 10 CFR § 50.75.
The Authority's decommissioning trust investment portfolio consists of U.S. Treasury Bills, Notes, and Strips and Federal Agency Securities. The 2022-2023 rise in interest rates resulted in a trust market value that is lower than book value with an unrealized loss of $27 million. The Authority determines its decommissioning funding based on its investment strategy of buying U.S. government securities and holding them until maturity. This buy and hold strategy mitigates temporary market declines and thereby provides justification for using book value as the starting point of the funding analysis. The schedule below adjusts the beginning balance from market to book and applies applicable real rates of return.
2024 Dollars Year Beginning Balance Decommissioning Annual Deposits Earnings Ending Balance Expenditures 133,037,262 Market 26,925,440 Adjustment 2025 159,962,702 Book 0
2,487,309 162,450,012 2026 162,450,012 0
2,553,822 165,003,833 2027 165,003,833 0
2,720,947 167,724,780 2028 167,724,780 0
2,745,474 170,470,254 2029 170,470,254 0
2,775,226 173,245,481 2030 173,245,481 0
2,816,609 176,062,090 2031 176,062,090 0
2,909,807 178,971,897 2032 178,971,897 0
2,965,312 181,937,210 2033 181,937,210 0
3,087,327 185,024,537 2034 185,024,537 0
2,952,614 187,977,151 2035 187,977,151 0
2,994,831 190,971,982 2036 190,971,982 0
3,037,597 194,009,579 2037 194,009,579 0
3,080,918 197,090,497 2038 197,090,497 0
3,124,800 200,215,297 2039 200,215,297 0
3,169,251 203,384,547 2040 203,384,547 0
3,214,275 206,598,823 2041 206,598,823 0
3,259,881 209,858,704 2042 209,858,704 0
3,306,075 213,164,779 2043 213,164,779 0
3,352,863 216,517,643 2044 216,517,643 0
3,400,253 219,917,896 2045 219,917,896 0
3,448,251 223,366,146 2046 223,366,146 0
3,496,864 226,863,010 2047 226,863,010 0
3,546,098 230,409,109 2048 230,409,109 0
3,595,962 234,005,071 2049 234,005,071 0
3,646,462 237,651,533 2 of5 Real Rate of Return 0.0155 0.0157 0.0165 0.0164 0.0163 0.0163 0.0165 0.0166 0.0170 0.0160 0.0159 0.0159 0.0159 0.0159 0.0158 0.0158 0.0158 0.0158 0.0157 0.0157 0.0157 0.0157 0.0156 0.0156 0.0156 2050 237,651,533 0
3,697,605 241,349,139 2051 241,349,139 0
3,749,399 245,098,538 2052 245,098,538 0
3,801,850 248,900,388 2053 248,900,388 0
3,854,966 252,755,354 2054 252,755,354 0
3,908,754 256,664,109 2055 256,664,109 0
3,963,222 260,627,331 2056 260,627,331 0
4,018,377 264,645,708 2057 264,645,708 0
4,074,227 268,719,935 2058 268,719,935 0
4,130,778 272,850,714 2059 272,850,714 0
4,188,040 277,038,753 2060 277,038,753 0
4,246,018 281,284,772 2061 281,284,772 0
4,304,722 285,589,494 2062 285,589,494 10,616,427 4,364,159 279,337,226 2063 279,337,226 25,479,427 4,262,343 258,120,141 2064 258,120,141 25,479,427 3,932,823 236,573,537 2065 236,573,537 25,479,427 3,599,260 214,693,371 2066 214,693,371 25,479,427 3,261,610 192,475,553 2067 192,475,553 25,479,427 2,919,825 169,915,951 2068 169,915,951 25,479,427 2,573,859 147,010,383 2069 147,010,383 14,862,998 2,223,665 134,371,050
- 4.
The assumptions used regarding escalation in decommissioning cost, rates of earnings on decommissioning funds, and rates of other factors used in funding projections follow:
The previous schedule of annual amounts remaining to be collected is based on a DECON method of decommissioning. In contrast, the Authority intends to utilize a SAFSTOR method of decommissioning.
Costs are escalated by four categories identified in the 2020 site-specific study using the following rates: labor (2.8%), equipment and materials (1.3%), waste burial (3.8%) and other (2.8%). These rates were proposed in an internal memorandum and approved on November 12, 2020, by the Chief Generation Officer and represent the Authority's best estimate of future cost increases. The schedule below shows weighted average escalation rates reflecting the above cost categories weighted by individual category costs over the sum of the four categories.
LL W will be disposed of using a combination of compact-affiliated and non-compact disposal facilities.
The trust fund accrues earnings in accordance with the estimated effective yield (approximately 4.3% as shown below). The Authority's Board of Directors approves all customer rates. As the rate-regulatory authority, the Board adopted on March 22, 1999, a resolution containing the following language: "Upon recommendation of management, the Board of Directors authorizes the use of the effective yield of the trust portfolio for purposes of determining future decommissioning funding needs."
3 of 5 0.0156 0.0155 0.0155 0.0155 0.0155 0.0154 0.0154 0.0154 0.0154 0.0153 0.0153 0.0153 0.0153 0.0153 0.0152 0.0152 0.0152 0.0152 0.0151 0.0151 A
B (A-8)
Year Projected Earnings Rates Weighted Average Escalation Real Rates of Return Rates 2025 0.04278 0.02723 0.0155 2026 0.04298 0.02725 0.0157 2027 0.04377 0.02728 0.0165 2028 0.04368 0.02731 0.0164 2029 0.04362 0.02734 0.0163 2030 0.04362 0.02736 0.0163 2031 0.04392 0.02739 0.0165 2032 0.04399 0.02742 0.0166 2033 0.04441 0.02744 0.0170 2034 0.04343 0.02747 0.0160 2035 0.04343 0.02750 0.0159 2036 0.04343 0.02752 0.0159 2037 0.04343 0.02755 0.0159 2038 0.04343 0.02757 0.0159 2039 0.04343 0.02760 0.0158 2040 0.04343 0.02762 0.0158 2041 0.04343 0.02765 0.0158 2042 0.04343 0.02767 0.0158 2043 0.04343 0.02770 0.0157 2044 0.04343 0.02772 0.0157 2045 0.04343 0.02775 0.0157 2046 0.04343 0.02777 0.0157 2047 0.04343 0.02780 0.0156 2048 0.04343 0.02782 0.0156 2049 0.04343 0.02784 0.0156 2050 0.04343 0.02787 0.0156 2051 0.04343 0.02789 0.0155 2052 0.04343 0.02792 0.0155 2053 0.04343 0.02794 0.0155 2054 0.04343 0.02796 0.0155 2055 0.04343 0.02799 0.0154 2056 0.04343 0.02801 0.0154 2057 0.04343 0.02803 0.0154 2058 0.04343 0.02805 0.0154 2059 0.04343 0.02808 0.0153 2060 0.04343 0.02810 0.0153 2061 0.04343 0.02812 0.0153 2062 0.04343 0.02815 0.0153 2063 0.04343 0.02817 0.0153 2064 0.04343 0.02819 0.0152 2065 0.04343 0.02821 0.0152 2066 0.04343 0.02824 0.0152 2067 0.04343 0.02826 0.0152 2068 0.04343 0.02828 0.0151 2069 0.04343 0.02830 0.0151 4 of5
- 5.
Contracts upon which the licensee is relaying pur uant to 10 CFR § 50.75 (e) (1) (v).
None.
- 6.
Modifications to the current funding assurance methods.
None.
- 7.
Material changes to Trust Agreements.
None.
- 8.
Authority's one-third share of the 2020 Site-Specific Study (SAFSTOR method).
NRC Mini mun Funding Requirements - License Termination (radiological decommissioning costs)
Excess Site-Specific Study Costs (license termination, spent fuel management and site restoration costs) Net of Estimated DOE Reimbursements (spent fuel management costs) 2020 Site Specific Study Costs (license termination, spent fuel management and site restoration) Net of Estimated DOE Reimbursements (spent fuel management costs)
- 9.
Market value of the internal fund on December 31, 2024 for spent fuel management and site restoration Book value of the internal fund on December 31, 2024 for spent fuel management and site restoration 5 of 5 2024 Dollars 178,355,987 250,690,784 429,046,771
$85,842,402