NG-06-0282, Decommissioning Funding Status Report
| ML061140114 | |
| Person / Time | |
|---|---|
| Site: | Duane Arnold  |
| Issue date: | 03/31/2006 |
| From: | Vanmiddlesworth G Duane Arnold |
| To: | Document Control Desk, Office of Nuclear Reactor Regulation |
| References | |
| NG-06-0282 | |
| Download: ML061140114 (3) | |
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FPL Energy Duane Arnold, LLC 3277 DAEC Road 0
Palo, lowa !52324 FIPL Energy.
Duane Arnold Energy Center March 31, 2006 NG-06-0282 10 CFR 50.75(1)(1)
U.S. Nuclear Regulatory Commission ATTN: Document Control Desk Washington, D.C. 20555-0001 Duane Arnold Energy Center ("DAEC")
Docket 50-331 License No. DPR-49 Decommissioning Funding Status Report Please find enclosed a decommissioning funding status report for DAEC in accordance with paragraph (f)(1) of 10 CFR 50.75, "Reporting and Recordkeeping for Decommissioning Planning." FPL Energy Duane Arnold, LLC, a subsidiary of FPL Energy, LLC submits this report because of the involvement of FPL Energy, LLG. in a proposed merger with Constellation Energy Group, Inc. The financial information presented herein, is current as of December 31, 2005. The previous report for DAEC was submitted on March 31, 2005 by the Nuclear Management Company, LLC, as the prior licensed operator of DAEC.
This letter contains no new commitments and no revisions to existing commitments.
If you have any questions concerning this submittal, please contact Steven Catron, DAEC Licensing Manager at (319) 851-7234 or Robert E. Helfrich, Senior Attorney,
--FPL Energy,-LLC,-at (561)303--5288; Gary Van Middlesworth Vice President, Duane Arnold Energy Center FPL. Energy Duane Arnold, LLC Enclosure cc:
Administrator, Region ll, USNRC Project Manager, DAEC, USNRC Resident Inspector, DAEC, USNRC
-p Enclosure FPL Energy Duane Arnold, LLC, Central Iowa Power Cooperative (CIPCO),
Corn Belt Power Cooperative (Corn Belt)
Decommissioning Funding Status Report
- 1.
The minimum decommissioning fund estimate pursuant to 10 CFR 50.75(b) a d (c).
Plant Owner (% Ownership)
NRC Minimum FFPL Energy Duane Arnold, LLC (70%)
$299,267,400 CIPCO (20%)
$85,504,972 Corn Belt (10%)
$42,752,486
_ =Total
$427,5:24,858 2.
T-e amount accumulated at the end of the calendar year preceding the date ofthe reprt.
Plant Owner (% Ownership)
Internal External Tolal FFPL Energy Duane Arnold, LLC (70%)
0
$188,157,208
$188,157,208 CIPCO (b) (20%)
$24,036,951
$34,939,973
$58,976,924 Corn Belt (a) (b) (10%)
$8,849,156
$17,214,797
$26,063,953 Total
$32,886,107 240,311,978 273,198,085 (a) Corn Belt is not relying on Internal Fund Reserve for purposes of meeting NRC decommissioning funding assurance requirements.
(b) These funds have been invested for purposes of funding decommissioning.
(c) Balance as of 1/27/06.
- 3.
Schedule of the annual amounts remaining to be collected. (Beainnina 2006 & Endina 2014)
Plant Owner (% Ownership)
Annual Annuity Projected (a)
Funds Ending 2014 FF'L Energy Duane Arnold, LLC (70%)
$0
$295,8:29,588 CIPCO (20%)
$1.0 to 3.2 million
$112,735,000 Corn Belt (10%)
$1.3 to 2.0 million
$70,3.29,595 Total
$2.3 to 5.2 million
$478,894,183 (a) Actual annual contributions to the external sinking fund will vary based upon reassessment of owner's decommissioning funding obligations in light of NRC requirements, actual inflation, actual fund earnings, and other factors.
Assumptions used regarding escalation in decommissioning costs, rate of earnings on decommissioning funds and rates of otherfactors used in funding projections.
Plant Owner (% Ownership)
Rate of Earnings Escalation Real Rate of (Nominal Rate Of Factor Return
._Return)
(Inflation)
(Project)
FFPL Energy Duane Arnold, LLC (al (70%)
l 7.1%
4.06%
2%9o CIPCO (b) (20%)
8%
4%
4%
Ccirn Belt (c) (10%)
10%
5%
5%,
Basis for Allowance:
(a) The real rate of return allowed by 10 CFR 50.75 is 2%.
4.
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(bU Central Iowa Power Cooperative (CIPCO) is a tax-exempt cooperative under IRS section 501 c(1 2). This exempt status allows for a higher rate of earnings that results in higher projected real rates of return. CIPCO's rates are not regulated by any state or federal agency. CIPCO's rates are determined annually based on a budget approved by the Board of Directors. If the cooperative does not obtain the projected earnings rates on the decommissioning fund, it has the ability to increase future funding to meet the decommissioning obligation.
(c) Corn Belt Power Cooperative is a tax-exempt cooperative under IRS section 501c(12).
This exempt status allows for higher rate of earnings that results in higher projected real rates of return. Corn Belt's rates are not regulated by any state or federal agency. Corn Belt's rates are determined annually based on a budget approved by the Board of Directors. If the cooperative does not obtain the projected earnings rates on the decommissioning fund, it has the ability to increase future funding to meet the decommissioning obligation.
- 5.
Any contracts upon which the licensee is relying pursuant to 10 CFR 50.75(e)(1)(v).
FF'L Energy Duane Arnold, LLC, CIPCO and Corn Belt are not relying upon any long term contract for purposes of providing decommissioning funding wil.hin the meaning of 10 CFR 50.75(e)(1)(v).
None
- 6.
Any modifications to a licensee's method of providing financial assurance occurring since the last submitted report.
FF'L Energy Duane Arnold, LLC, CIPCO & Corn Belt continue to use the external sinking fund method of providing decommissioning funding assurance. FPL Group Capital is providing a parent guaranty in the amount of $75 million as an additional method of financial assurance for FPL Energy Duane Arnold, LLC.
See below
- 7.
Any material changes to trust agreements.
See below (a)
(b) (c)
V (a) FPL Energy Duane Arnold, LLC - Modifications to trust arrangements are described in the NRC license transfer application letter NG-05-0419 dated 8/1/05'and approval in NRC order letter -
TAC No. MC8026 dated 12/23/05.
(b) October 11, 2005, Nuclear Management Company, LLC Letter to NRC from Gary Van Middlesworth, Site Vice President, DAEC, which provided draft forms of agreement for NRC's information for the Qualified and Non-Qualified trust agreements.
(c) February 20, 2006, FPL Energy Duane Arnold, LLC Letter to NRC from Gary Van Middlesworth, Vice President, DAEC, which provided a copy of the executed Buyer's Parent Guaranty in the amount of
$75 million to the NRC for decommissioning funding assurance for DAEC (in year 2005 dollars).
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