NL-03-0692, Financial Assurance Requirements for Decommissioning Nuclear Power Reactors
| ML030910121 | |
| Person / Time | |
|---|---|
| Site: | Farley  |
| Issue date: | 03/28/2003 |
| From: | Beasley J Southern Nuclear Operating Co |
| To: | Document Control Desk, Office of Nuclear Reactor Regulation |
| References | |
| NL-03-0692 | |
| Download: ML030910121 (9) | |
Text
J. Barnie Beasley, Jr., P.E.
Vice President Southern Nuclear Operating Company, Inc.
40 Inverness Center Parkway Post Office Box 1295 Birmingham, Alabama 35201 Tel 205 992 7110 Fax 205 992 0341 SOUTHERN La COMPANY Energy to Serve Your World' NL-03-0692 March 28, 2003 Docket Nos.:
50-348 50-364 U. S. Nuclear Regulatory Commission ATTN: Document Control Desk Washington, D. C. 20555-0001 Joseph M. Farley Nuclear Plant Financial Assurance Requirements for Decommissioning Nuclear Power Reactors (10 CFR 50.75(f)(1))
Ladies and Gentlemen:
Pursuant to 10 CFR 50.75(fJ(1), each power reactor licensee is required to report to the NRC the status of its decommissioning funding for each reactor or part of each reactor it owns on a calendar year basis, beginning on March 31, 1999, and every two years thereafter. Southern Nuclear Operating Company (Southern Nuclear) holds operating licenses NPF-2 and NPF-8 for the Joseph M. Farley Nuclear Plant owned by Alabama Power Company. Accordingly, Southern Nuclear provides the enclosed Alabama Power Company submittal in accordance with the requirements of 10 CFR 50.75(f0(1).
This letter contains no NRC commitments. If you have any questions, please advise.
Sincerely, JBB/TWS/sdl
Enclosure:
cc:
Southern Nuclear Operating Company Mr. J. D. Woodard, Executive Vice President Mr. D. E. Grissette, General Manager - Plant Farley Document Services RTYPE: CFAO4.054
~ & *
~
1 Q SKl 4~\\-QP
U. S. Nuclear Regulatory Commission NL-03-0692 Page 2 U. S. Nuclear Regulatory Commission Mr. L. A. Reyes, Regional Administrator Mr. F. Rinaldi, NRR Project Manager - Farley Mr. T. P. Johnson, Senior Resident Inspector - Farley Alabama Power Company Mr. W. B. Hutchins, III, Executive Vice President, CFO, and Treasurer Mr. J. R. DeRieux, Asst. Treasurer and Gen. Manager., Corp. Finance and Planning
ENCLOSURE
- 1. Randy DeRieux 600 North 18th Street Assistant Treasurer and Post Office Box 2541 General Manager-Birmingham, Alabama 352910030 Corporate Finance and Tel 205 257 2454 Planning Fax 205 257 1023 February 20,2003 ALABAMA Docket Nos.
50-348 POWER 50-364 ASOUTHERN COMPANY U. S. Nuclear Regulatory Commission ATTN: Document Control Desk Washington, D. C. 20555 Joseph M. Farley Nuclear Plant Financial Assurance Requirements for Decommissioning Nuclear Power Reactors (63 FR 50465 dated September 22. 1998)
Dear Ladies and Gentlemen:
As provided in 10 CFR 50.75(f)(1), each power reactor licensee is required to report to the NRC, on a calendaryear basis, beginning on March 31, 1999, and every 2 years thereafter, on the status of its decommissioning funding for each reactor or part of reactor it owns.
Alabama Power Company (APC), hereby submits the information for operating licenses NPF-2 and NPF-8 as requested in accordance with 10 CFR 50.75(f)(1) for the Joseph M. Farley Nuclear Plant. Southern Nuclear Operating Company, as the operating licensee and as agent for the owner of Plant Farley, will be forwarding this information to the NRC on behalf of APC.
Based on the information presented herein, there is reasonable assurance that the APC amount of the NRC prescribed minimum will be available to decommission Plant Farley, units 1 & 2 on the current expiration date of each unit's operating license as set forth in 10 CFR 50.75(c).
Should you have any questions concerning this matter, please call me.
Respectfully submitted, ALABAMA POWER COMPANY, by, JRD/jch Enclosures
U. S. Nuclear Regulatory Commission Page Two cc:
Southern Nuclear Operating Company Mr. D. N. Morey, Vice President - Plant Farley U. S. Nuclear Regulatory Commission. Washington. D. C.
Mr. F. Rinaldi, Licensing Project Manager - Farley U. S. Nuclear Regulatorv Commission. Region 11 Mr. L. A. Reyes, Regional Administrator Mr. T. P. Johnson, Senior Resident Inspector - Farley
Enclosure Alabama Power Company Ownership Percentage -100%
10 CFR 50.75(f)(1) Requirement Unit 1 Unit 2
- 1. The minimum decommissioning fund estimate, pursuant to 10 CFR 50.75 (b) and (c)l
$331,363,0002
$331,363,0002
- 2.
The amount accumulated at the end of the calendar year preceding the date of the report for items included
$155,972,2463
$149,812,2453 in 10 CFR 50.75 (b) and (c).
- 3.
A schedule of the annual amounts remaining to be See Schedule in See Schedule in collected; for items in 10 CFR 50.75 (b) and (c).
- 4.
The assumptions used regarding:
Rates of escalation in decommissioning cost 4.5%
4.5%
Informal Docket U-3295 Dated: 12117/93 Rates of Earnings on decommissioning funds 7.0%
7.0%
InformalDocket U-3295 Dated: 12/1 7/93 Rates of other factors used in funding projections N/A N/A
- 5.
Any contracts upon which the licensee is relying pursuant to 10 CFR 50.75(e)(1)(ii)(c)
N/AN/A
- 6.
Any modifications to a licensee's current method No Modifications providing financial assurance occurring since the last External Sinking Fund submitted report.
"Cost of Service" Rate Making
- 7.
Any material changes to trust agreements.
See Attachment 3 The NRC formulas in section 10CFRSO.75(c) include only those decommissioning costs incurred by licensees to remove a facility or site safely from service and reduce residual radioactivity to levels that permit: (1) release of the property for unrestricted use and termination of the license; or (2) release of the property under restricted conditions and termination of the license. The cost of dismantling or demolishing non-radiological systems and structures is not included in the NRC decommissioning cost estimates. The costs of managing and storing spent fuel on site until transfer to DOE are not included in the cost formulas.
2 This number is based on NUREG-1307, Rev. 8 for the Burial factor and the December 2001 values for the Labor and Energy factors.
3 December trust earnings are not reflected on the company's books, therefore, the December 2002 balances on this report will not agree to other financial disclosures of the company.
Attachment I Schedule of the Annual Amounts Remaining to be Collected Alabama Power Company Farley Nuclear Plant Unit I Beginning Fund 0-a1--r Fund
=mminnc Fund C.nntribuhtin Ending Fund Balance Minimum Decommissioning Fund Estimate vex-I Ud LJCIIOI 1 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017
$155,972,246 177,160,010 199,830,918 224,088,789 250,044,711 277,817,548 307,534,484 339,331,604 373,354,524 409,759,047 448,711,888 490,391,427 534,988,534 582,707,438 633,766,666
$10,918,057 12,401,201 13,988,164 15,686,215 17,503,130 19,447,228 21,527,414 23,753,212 26,134,817 28,683,133 31,409,832 34,327,400 37,449,197 40,789,521 44,363,667
$10,269,707 10,269,707 10,269,707 10,269,707 10,269,707 10,269,707 10,269,707 10,269,707 10,269,707 10,269,707 10,269,707 10,269,707 10,269,707 10,269,707 0
$155,972,246 177,160,010 199,830,918 224,088,789 250,044,711 277,817,548 307,534,484 339,331,604 373,354,524 409,759,047 448,711,888 490,391,427 534,988,534 582,707,438 633,766,666 678,130,332
$331,363,000 346,274,335 361,856,680 378,140,231 395,156,541 412,938,585 431,520,822 450,939,259 471,231,525 492,436,944 514,596,606 537,753,454 561,952,359 587,240,215 613,666,025 641,280,996 670,138,641 Schedule of the Annual Amounts Remaining to be Collected Alabama Power Company Farley Nuclear Plant Unit 2 Beginning Fund 0nl.-nn-Fund FnMminne Fund Conntrihbutionn Ending Fund Balance Minimum Decommissioning Fund Estimate v,_,I eadI WlaICLIRt:
nIl v
1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021
$149,812,245 170,314,300 192,251,499 215,724,302 240,840,201 267,714,213 296,469,406 327,237,463 360,159,283 395,385,631 433,077,823 473,408,469 506,547,062 542,005,356 579,945,731 620,541,932 663,979,867 710,458,458 760,190,550
$10,486,857 11,922,001 13,457,605 15,100,701 16,858,814 18,739,995 20,752,858 22,906,622 25,211,150 27,676,994 30,315,448 33,138,593 35,458,294 37,940,375 40,596,201 43,437,935 46,478,591 49,732,092 53,213,338
$10,015,198 10,015,198 10,015,198 10,015,198 10,015,198 10,015,198 10,015,198 10,015,198 10,015,198 10,015,198 10,015,198 0
0 0
0 0
0 0
0
$149,812,245 170,314,300 192,251,499 215,724,302 240,840,201 267,714,213 296,469,406 327,237,463 360,159,283 395,385,631 433,077,823 473,408,469 506,547,062 542,005,356 579,945,731 620,541,932 663,979,867 710,458,458 760,190,550 813,403,888
$331,363,000 346,274,335 361,856,680 378,140,231 395,156,541 412,938,585 431,520,822 450,939,259 471,231,525 492,436,944 514,596,606 537,753,454 561,952,359 587,240,215 613,666,025 641,280,996 670,138,641 700,294,880 731,808,149 764,739,516 799,152,794 Material Changes to Trust Agreement Executed Nonqualified Master Nuclear Decommissioning Trust Agreement with First Alabama Bank, Mobile June 1991 February 1994 February 1994 February 1994 December 1995 November 1996 March 1999 July 1999 July 1999 August 1999 Executed Investment Management Agreement with W. H. Reaves & Co. for the Nonqualified Master Nuclear Decommissioning Trust Executed Investment Management Agreement with ANB Investment Management and Trust Company for the Nonqualified Master Nuclear Decommissioning Trust Executed Investment Management Agreements with Loomis, Sayles & Company for the Nonqualified Master Nuclear Decommissioning Trust and the Qualified Master Nuclear Decommissioning Trust Executed Investment Management Agreement with Flaherty & Crumrine, Inc. for the Nonqualified Master Nuclear Decommissioning Trust Named Mellon Bank, N. A. successor trustee for the Nonqualified Master Nuclear Decommissioning Trust and the Qualified Master Nuclear Decommissioning Trust Established Trust Owned Life Insurance with Allmerica Financial Life and Annuity Company indirectly through Vinings Management for the Nonqualified Master Nuclear Decommissioning Trust Executed Investment Management Agreement with Northern Trust Company for the Qualified Master Nuclear Decommissioning Trust Executed Investment Management Agreement with Rhumbline Advisers for the Qualified Master Nuclear Decommissioning Trust Executed Investment Management Agreement with Barrow, Hanley, Mewhinney &
Strauss, Inc. for the Qualified Master Nuclear Decommissioning Trust July 2000 Executed Investment Management Agreement with Castleark Management L.L.C. for the Qualified Master Nuclear Decommissioning Trust Executed Investment Management Agreement with AmSouth Bank-for the Qualified and Nonqualified Master Nuclear Decommissioning Trust September 2002