NL-15-0577, Edwin I. Hatch, Units 1 and 2 - Oglethorpe Power Corporation Response on Financial Assurance Requirements for Decommissioning Nuclear Power Reactors (10 CFR 50.75(f)(1))

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Edwin I. Hatch, Units 1 and 2 - Oglethorpe Power Corporation Response on Financial Assurance Requirements for Decommissioning Nuclear Power Reactors (10 CFR 50.75(f)(1))
ML15167A463
Person / Time
Site: Hatch  Southern Nuclear icon.png
Issue date: 03/03/2015
From: Appleby A F
Oglethorpe Power Corp
To:
Document Control Desk, Office of Nuclear Reactor Regulation
Shared Package
ML15167A507 List:
References
NL-15-0577
Download: ML15167A463 (4)
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Edwin I. Hatch Nuclear Plant Financial Assurance Requirements for Decommissioning Nuclear Power Reactors (10 CFR 50.75(f)(1))

Enclosure 2 Oglethorpe Power Corporation Response

  • 1 OglethorpePower An Afembemxhip Corpration March 3, 2015 Docket Nos.: 50-321 50-366 U. S. Nuclear Regulatory Commission ATTN: Document Control Desk Washington, D.C. 20555 Edwin I. Hatch Nuclear Plant Financial Assurance Requirements for Decommissioning Nuclear Power Reactors (10 CFR 50.75(f)(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.

Oglethorpe Power Corporation (OPC) hereby submits the enclosed information in accordance with 10 CFR 50.75(f)(1) for operating licenses DPR-57 and NPF-5 issued for Edwin I. Hatch Nuclear Plant Unit 1 and 2, respectively.

Southern Nuclear Operating Company, as the operating licensee and as an agent for the owners of the Edwin I. Hatch Nuclear Plant, is providing this Information to the NRC on behalf of OPC.Based on the information presented herein, there is reasonable assurance that the funding necessary for decommissioning the Edwin I. Hatch Nuclear Plant, consistent with the NRC prescribed minimum set forth in 10 CFR 50.75(c), will be available on the expiration date of operating licenses DPR-57 and NPF-5.Please advise if you have any questions or comments regarding the information provided herein.Respectfully submitted, Anne F. Appleby Vice President, Treasurer Oglethorpe Power Corporation Enclosure Oglethorpe Power Corporation

  • 2100 East Exchange Place. Tucker, GA 30084.5336 Phone 770-270-7600 Fax 770-270.7872 0 A member of the Ntatjonal Rural Electric Cooperative Association Enclosure Edwin I. Hatch Nuclear Plant Oglethorpe Power Corporation Ownership Percentage

-30.0%10 CFR 50.75(f)(1)

Requirement Unit I Unit 2 1 The NRC minimum decommissioning estimate, 2 pursuant to 10 CFR 50.75(b) and (c). $193,937,000

$193,937,000 2 The amount accumulated at the end of the $126,616,000

$99,542,000 calendar year preceding the date of the report for items included 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). Attachment 1 Attachment 1 4 The assumptions used regarding: (a) rates of escalation in decommissioning 2.41% 2.41%costs;(b) rates of earnings on decommissioning 6.00% 6.00%funds;(c) real rate of return; and 3.59% 3.590/6 (d) rates of other factors used in funding None None projections.*

5 Any contracts upon which the licensee is relying None None pursuant to 10 CFR 50.75(e)(1)(v).

6 Any modifications to a licensee's current method None None of providing financial assurance occurring since the last submitted report.7 Any material changes to trust agreements.

In May 2013 replaced the In May 2013 replaced the international equity manager international equity manager with another international with another international equity manager equity manager*As a rural electric cooperative, OPC's budget is approved by its Board of Directors annually.

The budget includes a 6% rate of earnings assumption for the Hatch and Vogtle Nuclear Decommissioning Trust Funds.The 6% rate of earnings assumption less the 2,41% escalation rate results in a real rate of return of 3.59%NOTES: The NRC formulas in section 10 CFR 50.75(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 amount is based on NUREG-1307, Rev. 15, for the burial factor (Option 2) and the December 2014 BLS data for labor and energy.

Attachment 1 Schedule of the Annual Amounts Remaining to be Collected Oglethorpe Power Corporation 2014 NRC MINIMUM" Hatch 2 6 Earnings Rate: 6 Hatch 1 Earnings Rate: Bilance Balance Balance Balance Year Begin Year Earnings Contribution End Year Year Begin Year Earninga Contribution End Yeax 2014 118,944,451 2015 126.615,687 2016 134,212,628 2017 142,265,386 2018 150,801,309 2019 159,849.388 2020 169,440,351 2021 179,606,772 2022 190,383,178 2023 201.806,169 2024 213,914,539 2025 226.749,41i 2026 2,10,354,376 2027 254,775,639 2028 270,062,177 2029 286,265,908 2030 303,441,862 2031 321,648,374 2032 340.947,276 2033 361,404,113 2034 383,088,360 7,136,667 7,596,941 8,052,758 8,535,923 9,048,079 9,590,963 10,166,421 10,776,406 1 1,422,991 12.108.3"0 12,834,872 13.604,965 14,421.263 15,286,538 16.203,731 1-,175,954 18,206,512 19.298,902 20,456,83' 21,684,24-22.985;302 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 126,615,687 134.212,628 1-12,265,386 150,801o,309 159,849,388 169,440,351 179,606,727 190,383,178 201,806,169 213,914,539 226,749,411 240,354,376 254,775.639 270,062,177 286,265,908 303,441,862 1" 321.648,374 340,947,276 361,404,113, 383,088,360 406,073,661 319,779,000 NRC Min .from 2/15 letter 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 2036 2037 2038 93,511,406 99,542,356 105,514,897

[11,845,791 118,556.539 125,669,931 133.210.127 1,11,202,734 149.674,899 158,655.392 168,174,716 178,265,199 188,961,111 200,298,778 212,316,704 225,055.706 238,559,049 252,872,592 268.044.947 284.127,644 301,175.303 319.245.821 338,400,570 358,704,604 380,226,881 5,610,684 5,972,541 6,330,89-6,710,74'7,113,392 7,540.196 7.992,608 8.472,164 8,980,494 9,519,324 10,090,483 10,695.,912 11,337.667 12.017,927 12,739,002 13,503.342 14,313,543 15,172,356 16,082,697 17,047,659 18.070,518 19,154,749 20,304.03.i 21,522,2-6 22,813.613 99,542,356 105,514,89-111,845,791 118.556,539 125,669,931 133.210.12-141.202.734 149,674,899 158,655,392 168.174,716 178,265,199 188,961,111 200,298,778 212,316,704 225,055,706 238,559,049 252,872,592 268,044,947 284,127,644 301,175,303 319,245,821 338.400.570 358,704,1604 380,226,881 403,040,493 351,738,000 NRC Min from 2/15 letter

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