NL-13-0675, Financial Assurance Requirements for Decommissioning Nuclear Power Reactors (10 CFR 50.75(f)(1))

Financial Assurance Requirements for Decommissioning Nuclear Power Reactors (10 CFR 50.75(f)(1))

ML13091A215
Person / Time
Site:	Farley
Issue date:	03/29/2013
From:	Pierce C Southern Co, Southern Nuclear Operating Co
To:	Document Control Desk, Office of Nuclear Reactor Regulation
References
NL-13-0675
Download: ML13091A215 (9)

Text

Charles R. Pierce Southern Nuclear Regulatory Affairs Director Operating Company, Inc.

40 Inverness Center Parkway Post Office Box 1295 Birmingham, Alabama 35201 Te l 205.992.7872 Fax 205.992.7601 March 29, 2013 SOUIHERN A COMPANY Docket Nos.: 50-348 NL-13-0675 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(f)(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 Unit 1 and Unit 2, respectively, 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(f)(1) .

This letter contains no NRC commitments . If you have any questions, please contact Ken McElroy at (205) 992-7369.

Sincerely, C.1(~

C. R. Pierce Regulatory Affairs Director CRPITWS/lac Enclosure : Alabama Power Company Response

U. Nuclear Regulatory Commission NL-13-0675 2

cc: Alabama Power Company Ms. A. Allcorn-Walker, Vice President, Comptroller Mr. C. Blake, Assistant Treasurer Southern Nuclear Operating Company Mr. E. Kuczynski, Chairman, President &

Mr. D. G. Bost, Executive Vice President & Chief Nuclear Mr. A. Lynch, Vice President - Farley Mr. L. Ivey, Vice President - Regulatory Affairs Mr. B. J. Adams, President - Operations RTYPE: CFA04.054 Mr. V. M. McCree, Regional Administrator Ms. A. Brown, NRR Project Manager Farley Mr. P. K. Niebaum, Senior - Farley Mr. J. R. Sowa, Senior Resident - Farley

Joseph M. Farley Nuclear Plant Financial Assurance Requirements for Decommissioning Nuclear Power Reactors (10 CFR 50.75(f)(1>>

Enclosure Alabama Power Company Response

Chris Blake, CPA, CMA 600 North 18th Street Assistant Treasurer Post Office Box 264 1 Treasury Services Birmingham, Alabama 35291-0040 Te l 205. 257.3618 Fax 205.257. 1023 ALABAMA ' \

POWER A SOUTHERN COMPANY March 6, 2013 Docket Nos, : 50-348 50-364 US Nuclear Regulatory Commission ATTN: Document Control Desk Washington, D.c. 20555 Joseph M, Farley Nuclear Plant Financial Assurance Requirements for Decommissioning Nuclear Power Reactors [10 CFR 50,75[0(1))

Dear Ladies and Gentlemen:

Pursuant to 10 CFR 50.75(f)(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. Alabama Power Company (APC) hereby submits the enclosed information in accordance with 10CFR 50.75(f)(1) for operating licenses NPF-2 and NPF-8 issued for Joseph M. Farley Nuclear Plant Unit 1 and 2, respectively.

Southern Nuclear Operating Company, as the operating licensee and as an agent for the owner of Farley Nuclear Plant, is providing this information to the NRC on behalf of APC.

Based on the information presented herein, there is reasonable assurance that the funding necessary for decommissioning the Farley Nuclear Plant, consistent with the NRC prescribed minimum set forth in 10 CFR 50.75(c), will be available on the expiration date of the operating licenses NPF-2 and NPF-8.

Please advise if you have any questions or comments regarding the information provided herein .

Respectfully submitted, ALABAMA POWER COMPANY, by, Christopher R. Blake CRB:kph Enclosure

Enclosure Alabama Power Company Ownership Percentage -100%

10 CFR 50.75(f)(1) Requirement Unit 1 Unit 2 2

• The NRC minimum decommissioning estimate, $ 485,342,000 2 i pursuant to 10 CFR 50.75(b) and (c). 1 2  : The amount accumulated at the end of the $309,21 $296,156,008

. calendar year the date of the

! items included in 10 50.75(b) and 3 A schedule of the annual amounts to be See Schedule in See Schedule in i collected; for items in 10 CFR 50.75(b) and (c). Attachment 1 Attachment 1 4 The assumptions used regarding:

rates of escalation in decommissioning 4.5% 4.5%

costs; (b) rates of on decommissioning funds; 7.0% 7.0%

(cl real rate of return; and 2.5% 3 2.5% 3 (d) rates of other factors used in funding N/A N/A projections.

5 . Any contracts upon which the licensee is N/A N/A

! pursuant to 10 CFR 50.75(e)(1)(v).

No modifications 6 Any modifications to a licensee's current method External Fund of providing financial assurance since "Cost of Service" Rate Making the last submitted report.

Any material Ichcmgesto Itrw,! a.greements. See Attachment 3 NOTES:

The NRC formulas in section 10 CFR include only those 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. 15, for the burial factor (Option 2) and the June 30, 2012, BLS data for labor and energy. Use of June 30, 2012, BLS data best correlates with the July 1, burial costs used for determination of the burial escalation factor described in NUREG-1307, Rev. 15.

3 The real rate of return of 2.5% was established by the Alabama Public Service Commission's Order pertaining to Informal Docket U-3295 and subsequent submittals pursuant to that Order, most recently on October 2008.

Joseph M. Farley Nuclear Plant-Units 1 & 2 Financial Assurance Requirements for Decommissioning Nuclear Power Reactors Attachment 1 Schedule of the Annual Amounts Remaining to be Collected

Attachment 1 Schedule the Annual Amounts Remaining to be Collected Alabama Power Company Farley Nuclear Plant Unit 1 Minimum Beginning Ending Decommissioning Fund Fund Fund Fund 2012 0 0 0 309,217,383 3 309,217,383 21,645,217 464,1 331,326,749 4 331,326,749 192,872 464,1 354,983,770 2015 354,983,770 24,848,864 464,1 2016 380,296,783 464,1 2017 407,381 28,516,719 464,149 8 464,1 105 632,041 9 467,372,105 464,1 500,552,301 660,483,403 2020 500,552,301 464,149 111 690,205,1 536,055,111 1 574,043,118 721,264,388 2022 574,043,118 40,183,018 464,149 614,690,285 753,721 2023 614,690,285 43,028,320 464,149 658,182,754 787,638,743 2024 658,182,754 46,072,793 464,149 9,696 823,082,486 2025 704,719,696 49,330,379 464,149 4,224 860,121,1 2026 754,514,224 52,815,996 464,149 807,794,368 807,794,368 464,149 123 864,804,123 60,536,289 464,149 981 2029 925,804,561 64,806,319 1 1 991 149 1,060,914,430 1,071,867,501 1,060,914,430 464,149 1,135,642,589 1,120,101 2032 1,135,642,589 464,1 1 5,601,719 1,170,506,1 2033 1,215,601 9 85,092,120 464,149 1,301,157,989 1 1 2034 1,301,157,989 91,081,059 464,149 1,392,703,197 1,278,221 1,392,703,197 97,489,224 464,149 1,490,656,569 1,335,741 2036 1,490,656,569 104,345,960 464,149 1 ,678 1,395,850,306 1,595,466,678 111 464,149 1 1,458,663,570 Over (Under) 248,949,925

Attachment 2 Schedule of the Annual Amounts Remaining to be Collected Alabama Power Company Farley Nuclear Plant Unit 2

Attachment 3 Changes to Trust Agreement 2011 Investment Management Agreement Decommissioning Trust.