NG-20-0023, Decommissioning Funding Status Report
| ML20086L916 | |
| Person / Time | |
|---|---|
| Site: | Duane Arnold  |
| Issue date: | 03/26/2020 |
| From: | Dean Curtland NextEra Energy Duane Arnold |
| To: | Document Control Desk, Office of Nuclear Reactor Regulation |
| References | |
| NG-20-0023 | |
| Download: ML20086L916 (6) | |
Text
March 26, 2020 Nuclear Regulatory Commission Attn: Document Control Desk Washington, DC 20555-0001 Duane Arnold Energy Center Docket No. 50-331 Renewed Facility Operating License No DPR-49 Decommissioning Funding Status Report NEXTera ENERGYe NG-20-0023 DUANE ARNOLD 10 CFR 50.75(f)(1) 10 CFR 50.82(a)(8)(5)
Pursuant to 1 O CFR 50. 75(f)(1 ), enclosed is the Decommissioning Funding Status (DFS) Report for the Duane Arnold Energy Center (DAEC). NextEra Energy Duane Arnold, LLC, Central Iowa Power Cooperative, and Corn Belt Power Cooperative own the DAEC. The report provides the status of decommissioning funding for all three owners.
This letter contains no new commitments and no revisions to existing commitments.
Should there be any questions, please contact Stephanie Castaneda at (561) 805-2556.
~dd~
Dean Curtland Site Director, Duane Arnold Energy Center NextEra Energy Duane Arnold, LLC Enclosure NextEra Energy Duane Arnold, LLC 3277 DAEC Road Palo, IA 52324 r
Decommissioning Funding Status Report 10 FR 50.75(f)(1)
Duane Arnold Energy Center 4 pages follow
Duane Arnold Energy Center NextEra Energy Duane Arnold, LLC (NEDA),
Central Iowa Power Cooperative (CIPCO),
Corn Belt Power Cooperative (Corn Belt)
Decommissioning Funding Status Report
- 1.
Duane Arnold Energy Center has performed a site specific decommissioning cost study that has estimated license termination costs of $724,688,000 (2018 dollars) which is higher than the minimum decommissioning fund estimate pursuant to 1 O CFR 50.75(b) and (c) of $617,688,089.
- 2.
The amount accumulated at the end of the calendar year preceding the date of the report. (Trust fund balances are net of taxes)
Plant Owner(% Ownership)
Total NEDA (70%)
454,453,798 CIPCO (20%)
74,883,106 Corn Belt (10%)
38,957,599 Total 568,294,503
- 3.
On February 21, 2020, NEDA submitted an exemption request based upon a site-specific decommissioning cost estimate using the SAFSTOR decommissioning alternative. License termination funding assurance for NEDA is demonstrated through the cost estimate, year end 2019 fund balance, and cash flow provided in the exemption request. Attachment 1 provides a license termination Decommissioning Funding Plan, SAFSTOR Alternative for CIPCO and Corn Belt based on the cost estimate provided in the February 21, 2020 NEDA exemption request.
- 4.
Assumptions used regarding escalation in decommissioning costs, rate of earnings on decommissioning funds and rates of other factors used in funding f
pro1ec ions.
Plant Owner(% Ownership)
Real Rate of Return NextEra (see note (c)) (70%)
2%
CIPCO (see note (d)) (20%)
4%
Corn Belt (see note (e)) (10%)
4%
Basis for Allowance:
(c) 10 CFR 50.75 allows licensees to assume up to a 2% real rate of return unless the licensee's rate-setting authority has specifically authorized a higher rate.
11 Page
Duane Arnold Energy Center NextEra Energy Duane Arnold, LLC (NextEra),
Central Iowa Power Cooperative (CIPCO),
Corn Belt Power Cooperative (Corn Belt)
Decommissioning Funding Status Report (d) Central Iowa Power Cooperative (CIPCO) is a public corporation incorporated under Chapter 499 Iowa Code (2009). CIPCO has the authority and is required to fix, establish, and collect adequate rates and other charges for electrical energy or services sold or furnished by it. CIPCO is accordingly authorized to establish its own rates and other charges through which it can recover its cost of service.
CIPCO is governed by a 13 member Board of Directors that are elected by the CIPCO members. The Board of Directors is the rate making authority for CIPCO.
CIPCO rates are not regulated by any state or federal authority. In a Board Resolution dated October 27, 2009, the CIPCO Board of Directors resolved that the rates and other charges for electrical energy services and the decommissioning fund be established assuming a real rate of return on the decommissioning fund of four percent.
(e) Corn Belt Power Cooperative is a public corporation incorporated under Chapter 499 Iowa Code (2009). Corn Belt has the authority and is required to fix, establish, and collect adequate rates and other charges for electrical energy or services sold or furnished by it. Corn Belt is governed by an 11 member Board of Directors who are elected by its members. The Corn Belt Board of Directors is accordingly authorized to establish its own rates and other charges through which it can recover its cost of service and is the rate making authority for the Cooperative. The Cooperative's rates are not regulated by any state or federal authority. In a Board Resolution dated May 2, 2014, the Corn Belt Board of Directors resolved that the rates and other charges for electrical energy services and the decommissioning fund be established assuming a real rate of return on the decommissioning fund of four percent.
- 5.
Any contracts upon which the licensee is relying pursuant to 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.
None
- 7.
Any material changes to trust agreements.
None 21Page Duane Arnold Energy Center Decommissioning Funding Plan 2020 Shutdown, SAFSTOR Alternative (Thousands of Dollars)
Basis Year 2018 Fund Balance as of 12/31/19: (Thousands of Dollars)
CIPCO 74,883 38,958 Corn Belt Total Trust Fund Balance 2019 Escalation Annual Earnings - CIPCO Annual Earnings - Corn Belt A
B 2018 Cost at Year 100%
2019 2020<1>
$40,281 2021
$43,735 2022
$15,949 2023
$5, 110 2024
$14,895 2025
$5,604 2026
$2,201 2027
$1,827 2028
$1,827 2029
$1,827 2030
$1,884 2031
$1,770 2032
$1,770 2033
$1,770 2034
$1,770 2035
$1,770 2036
$1,770 2037
$1,770 2038
$1,770 2039
$1,770 2040
$2,411 2041
$1,770 2042
$1,770 2043
$1,770 2044
$1,770 2045
$1,770 2046
$1,770 2047
$1,770 2048
$1,770 2049
$1,770 770 2051
$1,770 2052
$1,770 2053
$1,770 2054
$2,055 2055
$2,126 2056
$1,770 2057
$1,770 2058
$1,770 2059
$2,159 2060
$3,077 2061
$2,634 2062
$2,634 2063
$2,634 2064
$2,634 2065
$2,634 2066
$2,634 2067
$2 634 2068 2069
$2,634 c
Total Cost at 100%
Escalated at 1.8% to 2019 Dollars
$41,006
$44522
$16,236
$5,202
$15,163
$5,705
$2,240
$1,860
$1,860
$1,860
$1,918
$1,802
$1,802
$1,802
$1,802
$1,802
$1,802
$1,802
$1,802
$1,802
$2,455
$1,802
$1,802
$1,802
$1,802
$1,802
$1,802
$1,802
$1,802
$1,802
$1,802
$1,802
$1,802
$1,802
$2,092
$2,164
$1,802
$1,802
$1,802
$2,198
$3,133
$2,681
$2,681
$2,681
$2,681
$2,681
$2,681
$2,681
$2,681
$2,681 D
113,841 1.8%
4.0%
4.0%
CIPCO Decommissioning Trust Fund Balance escalated at4%
minus 20% of expenses 74,883 69,677 63,560 62,855 64,329 63,870 65,283 67,447 69,772 72,191 74,707 77,312 80,044 82,885 85,840 88,913 92,110 95,434 98,891 102,486 106,225 109,983 114,022 118,223 122,591 127,135 131,860 136,774 141,884 147,199 152,727 158 476 164,454 170,672 177,139 183,806 190,725 197,994 205,553 213,415 221,512 229,746 238,400 247,399 256,759 266,493 276,617 287,145 298,095 309,483 321,326 20% ownership 10% ownership E
Corn Belt Decommissioning Trust Fund Balance escalated at4%
minus 10% of expenses 38,958 36,415 33,420 33,133 33,938 33,779 34,560 35,718 36,961 38,253 39,598 40,990 42,449 43,967 45,545 47,187 48,894 50,670 52,517 54,437 56,434 58,446 60,604 62,848 65,182 67,609 70,133 72,758 75,488 78,328 81,281 84,352 87,546 90,867 94,322 97,885 101,584 105,468 109,506 113,706 118,035 122,443 127,072 131,887 136,895 142,102 147,518 153,151 159,009 165,101 171,437 31Page
2070
$2,634
$2,681 333,643 178,026 2071
$2,634
$2,681 346,452 184,879 2072
$2,634
$2,681 359,774 192,006 2073
$15,440
$15,718 371,021 198,115 2074
$32,608
$33,195 379,223 202,720 2075
$78,197
$79,604 378,471 202,868 2076
$94,001
$95,693 374,472 201,414 2077
$118,359
$120,489 365,353 197,421 2078
$101,052
$102,871 359,392 195,031 2079
$57,385
$58,418 362,085 196,991 2080 4,828
$4,915 375,585 204,379 Total 724,688 737,733 Calculations:
(1) The 2019 costs of$4,099,000 have been added to the 2020 costs.
Column D =(Column D (Previous year's fund balance) x (1 +0.04)) - (Column Bx 0.20) (20% of current year's decommissioning expenditures)
Column E =(Column E (Previous year's fund balance) x (1+0.04)) - (Column Bx 0.10) (10% of current year's decommissioning expenditures) 41Page