NL-17-0433, Financial Assurance Requirements for Decommissioning Nuclear Power Reactors
| ML17089A523 | |
| Person / Time | |
|---|---|
| Site: | Hatch  |
| Issue date: | 03/30/2017 |
| From: | Hutto J Southern Nuclear Operating Co |
| To: | Document Control Desk, Office of Nuclear Reactor Regulation |
| References | |
| NL-17-0433 | |
| Download: ML17089A523 (23) | |
Text
A Southern Nuclear J.J.Huno Regulatory Affairs Director 40 tnvemoss Center Parkway Post Olflce Box 1295 Birmingham, AL 35242 205 992 5872 tel 205 992 7601 tax UhuttoC&outhernco.com March 30, 2017 Docket Nos.: 50-321 NL-17-0433 50-366 10 CFR 50.75(f)(1)
U. S. Nuclear Regulatory Commission ATIN: Document Control Desk Washington, D. C. 20555-0001 Edwin I. Hatch Nuclear Plant Financial Assurance Requirements for Decommissioning Nuclear Power Reactors 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 DPR-57 and NPF-5 for the Edwin I. Hatch Nuclear Plant Unit 1 and Unit 2, respectively, owned by Georgia Power Company, Oglethorpe Power Corporation, Municipal Electric Authority of Georgia, and Dalton Utilities. Accordingly, Southern Nuclear provides the enclosed submittals 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.
Respectfully submitted, J. J. Hutto Regulatory Affairs Director JJH/eb/lac
Enclosures:
- 1. Georgia Power Company Response
- 2. Oglethorpe Power Corporation Response
- 3. Municipal Electric Authority of Georgia Response
- 4. Dalton Utilities Response
U.S. Nuclear Regulatory Commission NL-17-0433 Page2 cc: Southern Nuclear Operating Company Mr. S. E. Kuczynski, Chairman, President & CEO Mr. D. G. Bost, Executive Vice President & Chief Nuclear Officer Mr. D. R. Vineyard, Vice President- Hatch Mr. M. D. Meier, Vice President- Regulatory Affairs Mr. B. J. Adams, Vice President- Engineering Mr. G. L. Johnson, Regulatory Affairs Manager- Hatch RType: CHA02.004 Georgia Power Ms. A. P. Daiss, Comptroller, GAO, and Senior V. P.
Oglethorpe Power Ms. A. F. Appleby, Vice President, Teasurer Municipal Electric Authority of Georgia Mr. E. E. Easterlin, Sr., Senior V.P. and CFO City of Dalton Mr. Tom Bundros, CEO and President, Dalton Utilities U.S. Nuclear Regulatory Commission Ms. C. Haney, Regional Administrator Mr. R. Hall, NRR Project Manager- Hatch Mr. D. H. Hardage, Senior Resident Inspector- Hatch
Edwin I. Hatch Nuclear Plant Financial Assurance Requirements for Decommissioning Nuclear Power Reactors Enclosure 1 Georgia Power Company Response
~ Georgia Power David Poroch Vice President & Comptroller 241 Ralph McGill Blvd, NE Atlanta, GA 30308 404 506 0997 tel dporoch@ southernco.com March 7, 2017 Docket Nos.: 50-321 50-366 U.S. Nuclear Regulatory Commission ATIN: 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)(l))
Dear Ladies and Gentlemen:
Pursuantto 10 CFR 50.75(f)(l ), 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. Georgia Power Company (GPC) hereby submits the enclosed information in accordance with 10 CFR 50.75(f)(l) for operating licenses DPR-57 and NPF-5 issued for Edwin I. Hatch Nuclear Plant Units 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 GPC.
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, GEORGIA POWER COMPANY, by,
~~-
David Poroch Vice President & Comptroller Enclosure
Enclosure Edwin I. Hatch Nuclear Plant Georgia Power Company Ownership Percentage - 50.1%
10 CFA 50.75(f)(1) Requirement Unit 1 Unit2 1 The NRC minimum decommissioning estimate,
$290,887,000 2 $290,887,000 2 pursuant to 10 CFR 50.75(b) and (c). 1 2 The amount accumulated at the end of the calendar year preceding the date of the report for $256,846,668 3 $237,524,936 3 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 2.49% 2.49%
costs; (b) rates of earnings on decommissioning 4.49% 4.49%
funds; (c) real rate of return; and 2.00% 2.00%
(d) rates of other factors used in funding None None projections.
5 Any contracts upon which the licensee Is relying pursuant to 10 CFR 50.75(e)(1 )(v). None None 6 Any modifications to a licensee's current method No modifications since the No modifications since the of providing financial assurance occurring since last report. Funding is to an last report. Funding Is to the last submitted report. external sinking fund with the an external sinking fund sources of funds from with the sources of funds traditional cost of service from traditional cost of ratemaking as ordered by the service ratemaking as GPSC. ordered by the GPSC.
7 Any material changes to trust agreements. None None NOTES:
1 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. 16, for the burial factor (Option 2) and the December 2016 BLS data for labor and energy.
3 This amount represents the December 31, 2016 balance of funds In the external trust designated for license termination and does not Include funds identified and held In subaccounts within the external trusts for spent
fuel management and decommissioning of spent fuel storage facilities of $14,373,155 for Unit 1 and
$21,145,391 for Unit 2, which are funded through rates in accordance with Georgia Public Service Commission Orders.
Attachment 1 Schedule of the Annual Amounts Remaining to be Collected
GEORGIA POWER COMPANY GEORGIA POWER COMPANY NUCLEAR DECOMMISSIONING NUCLEAR DECOMMISSIONING Based on 12131/2016 Fund Balances Based on 12/31/2016 Fund Balances (Amounts In Thousands) (Amounts in Thousands)
HATCH1 HATCH2 BEG OF Adjusted END OF BEG OF Adjusted END OF YEAR FUND FUND Annual YEAR YEAR FUND FUND Annual YEAR YEAR FUND BAL EARNINGS CONTRIB Expend FUND BAL YEAR FUND BAL EARNINGS CONTRIB Expend FUNDBAL 2017 $ 256,847 $ 11,532 $ 268,379 2017 $ 237,525 $ 10,665 $ 248,190 2018 268,379 12,050 - - 280,429 2018 248,190 11,144 - - 259,334 2019 280,429 12,591 - - 293,021 2019 259,334 11,644 - - 270,978 2020 293,021 13,157 - - 306,177 2020 270,978 12,167 - - 283,144 2021 306,177 13,747 - - 319,925 2021 283,144 12,713 - - 295,858 2022 319,925 14,365 - - 334,289 2022 295,858 13,284 - - 309,142 2023 334,289 15,010 - - 349,299 2023 309,142 13,880 - - 323,022 2024 349,299 15,684 - - 364,982 2024 323,022 14,504 - - 337,526 2025 364,982 16,388 - - 381,370 2025 337,526 15,155 - - 352,681 2028 381,370 17,124 - - 398,493 2026 352,681 15,835 - - 368,516 2027 398,493 17,892 - - 416,386 2027 368,516 16,546 - - 385,063 2028 416,386 18,696 - - 435,082 2028 385,063 17,289 - - 402,352 2029 435,082 19,535 - - 454,617 2029 402,352 18,066 - - 420,417 2030 454,617 20,412 - - 475,029 2030 420,417 18,877 - - 439,294 2031 475,029 21,329 - - 496,358 2031 439,294 19,724 - - 459,018 2032 496,358 22,286 - - 518,644 2032 459,018 20,610 - - 479,628 2033 518,644 23,287 - - 541,931 2033 479,628 21,535 - - 501,164 2034 541,931 13,494 - - 555,42§_ 2034 501,164 22,502 - - 523,666 2035 523,666 23,513 - -
~-
547,179 2036 547,179 24,568 - - 571,747 2037 571,747 25,671 - - 597,418 2038 597,418 14,876 - - 612,294
Edwin I. Hatch Nuclear Plant Financial Assurance Requirements for Decommissioning Nuclear Power Reactors Enclosure 2 Oglethorpe Power Corporation Response
OglethorpePower An Electric Membership Corporation March 9, 2017 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 ofOPC.
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,
~J - ~
Anne F. Appleby Vice President, Treasurer Oglethorpe Power Corporation Enclosure Oglethorpe Power Corporation
- 21 00 East Exchange Place
- Tucker, GA 30084-5336 Phone 770-270-7600 Fax 770-270-7872 e A member of the National 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 1 Unit 2 1 The NRC minimum decommissioning estimate, 2
$174,184,000 2 $174,184,000 pursuant to 10 CFR 50.75(b) and (c). 1 2 The amount accumulated at the end of the $135,393,000 $106,443,000 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 2.49% 2.49%
costs; (b) rates of earnings on decommissioning funds;
- 5.00% 5.00%
2.51% 2 .51%
(c) real rate of return; and (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 2015 replaced the In May 2015 replaced the large cap equity manager large cap equity manager with another large cap equity with another large cap equity manager. In February 2017 manager. In February 2017 replaced the small cap equity replaced the small cap equity manager with a small/mid cap manager with a small/mid cap equity manager equity manager
- As a rural electnc cooperative, OPC s budget IS approved by 1ts Board of D1rectors annually. The budget 0
includes a 5% rate of earnings assumption for the Hatch and Vogtle Nuclear Decommissioning Trust Funds.
The 5% rate of earnings assumption less the 2.49% escalation rate results in a real rate of return of 2.51%
NOTES:
1 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. 16, for the burial factor (Option 2} and the December 2016 BLS data for labor and energy.
Attachment 1 Schedule of the Annual Amounts Remaining to be Collected Oglethorpe Power Corporation 2016 NRC MINIMUM Hatch 1 Hatch 2 Earnings Rate: 5 Earnings Rate: 5 Balance Balance Balance Balance Year Begin Year Earnings Contribution End Year Year Begin Year l*:arnings Contribution End Year 2016 125,941,229 6,297,()(i1 0 135,392,810 2016 99,0\2,113 4,950,(.06 0 106,442,730 2017 135,392,810 6,769,(>41 0 142,162,451 2017 106,442,730 5,322,137 0 111,764,867 2018 142,162,451 7,108,12) 0 149,270,573 2018 111,764,867 5,588,243 0 117,353,110 2019 149,270,573 7,461,529 0 156,734,102 2019 117,353,110 5,867,655 0 123,220,765 2020 156,734,102 7,8.%,70') 0 164,570,807 2020 123,220,765 6,161,038 0 129,381,804 2021 164,570,807 8,228,540 0 172,799,3 *~7 2021 129,381,804 6,469,090 0 13'),850,894 2022 172,799,347 8,639,967 0 181,439,314 2022 135,850,894 6,792,545 0 142,643,438 2023 181,H9,314 9,071,966 0 190,511,280 2023 142,643,438 7,132,172 0 149,775,610 2024 190,511,280 9,525,564 0 200,036,844 2024 149,775,610 7,488,781 0 157,264,391 2025 200,036,844 10,001,842 0 210,038,686 2025 157,264,391 7,863,220 0 Hi5,127,610 2026 210,038,686 10,501,934 0 220,540,621 2026 165,127,610 8,256,381 0 173,383,991 2027 220,540,621 11,027,031 0 23 t ,567,652 2027 173,383,991 8,669,200 0 182,053,191 2028 231 ,567,652 11,578,)113 0 243,146,034 2028 182,053,191 9,102,660 0 191,155,850 2029 243,146,034 12,157,302 0 255,303,336 2029 191,155,850 9,557,793 0 200,713,643 2030 255,303,336 12,765,167 0 268,068,503 2030 200,713,643 10,035,682 0 210,749,325 2031 268,068,503 13,403,425 0 281,471,928 203\ 210,749,325 10,537,466 0 221,286,791 2032 281,471,928 14,073,596 0 295,545,524 2032 221,286,791 11,064,340 0 2)2,351,130 2033 295,545,524 14,777,276 0 310,322,801 2033 232,351,130 11,617,557 0 243,968,687 2034 310,322,801 15,516,140 0 325,838,941 2034 243,968,687 12,198,434 0 256,167,121 2035 256,167,121 12,808,356 0 268,975,477 2036 268,975,477 13,448,774 0 282,424,251 2037 282,424,251 14,121,213 0 296,145,464 2038 296,545,464 14,827,273 0 311,372,737 277,944,000 306,678,000 NRC Min NRC Mm from 2/17 letter from 2/17 letter
Edwin I. Hatch Nuclear Plant Financial Assurance Requirements for Decommissioning Nuclear Power Reactors Enclosure 3 Municipal Electric Authority of Georgia Response
March 23, 2017 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. Accordingly, the Municipal Electric Authority of Georgia (MEAG) 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 MEAG.
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, Enclosure Municipal Electl'ic Authol'ity of Georgia 1470 Riveredge Parkway NW Atlanta, Georgia 30328 4640 1-800-333 -MEAG 770-563-0:lOO Fax 770-953-3141
Enclosure Edwin I. Hatch Nuclear Plant Municipal Electric Authority of Georgia Ownership Percentage- 17.7%
10 CFR 50.75(f)(1) Requirement Unit 1 Unit2 1 The NRC minimum decommissioning estimate, 2 2 1 $102,769,000 $102,769,000 pursuant to 10 CFR 50.75(b) and (c).
2 The amount accumulated at the end of the calendar year preceding the date of the report for $110,640,440 $110,172,122 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 2.49% 2.49%
costs; (b) rates of earnings on decommissioning 4.15% 4.15%
funds; (c) real rate of return ; and 1.66% 1.66%
(d) rates of other factors used in funding None None projections.
5 Any contracts upon which the licensee is relying MEAG Power Sales MEAG Power Sales pursuant to 10 CFR 50.75(e)(1 )(v) . Contracts Contracts 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. None None 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. 16, for the burial factor (Option 2) and the December 2016 BLS data for labor and energy.
Attachment 1 Schedule of the Annual Amounts Remaining to be Collected
MEAGPOWER Decommissioning Funding Plan Nuclear Decommissioning Fund -Hatch I (Dollars in tho11sands)
Calendar Balance at Less: Balance at Year Be~. of Year Contributions (I) Eamin~s Fees End of Year (A) (8) (C) (D) (E) 2016 110,640 2017 110,640 4,589 (171) 115,058 2018 115,058 4,772 (178) 119,652 2019 119,652 4,963 (185) 124,430 2020 124,430 5,161 (192) 129,399 2021 129,399 5,367 (200) 134,566 2022 134,566 5,581 (208) 139,939 2023 139,939 5,804 (216) 145,528 2024 145,528 6,036 (224) 151,339 2025 151,339 6,277 (233) 157,383 2026 157,383 6,527 (242) 163,668 2027 163,668 6,788 (252) 170,204 2028 170,204 7,059 (262) 177,001 2029 177,001 7,341 (272) 184,070 2030 184,070 7,634 (283) 191,421 2031 191,421 7,939 (294) 199,066 2032 199,066 8,256 (306) 207,017 2033 207,017 8,586 (318) 215,285 2034 215,285 5,953 (220) 221,017 2035 2036 2037 2038 2039 2040 2041 2042 2043 2044 2045 2046 2047 2048 2049 Total 114,633 (4,256)
Footnotes:
(I)- Based on the current funding levels and decommissioning forecast, the decommissioning contributions for Hatch Unit One are being suspended.
Date: 3/23/2017; Time: 9:52AM
MEAGPOWER Decommissioning Funding Plan Nuclear Decommissioning Fund- Hatch 2 (Dollars in thousands)
Calendar Balance at Less: Balance at Year Beg. ofYear Contributions (I) Earnings Fees End of Year (A) (B) (C) (D) (E) 2016 110,172 2017 110,172 4,569 (170) 114,571 2018 114,571 4,752 (177) 119,146 2019 119,146 4,942 (184) 123,904 2020 123,904 5,139 (191) 128,851 2021 128,851 5,344 (199) 133,997 2022 133,997 5,558 (207) 139,348 2023 139,348 5,779 (215) 144,912 2024 144,912 6,010 (223) 150,699 2025 150,699 6,250 (232) 156,717 2026 156,717 6,500 (241) 162,976 2027 162,976 6,759 (251) 169,484 2028 169,484 7,029 (261) 176,253 2029 176,253 7,310 (271) 183,292 2030 183,292 7,602 (282) 190,612 2031 190,612 7,906 (293) 198,225 2032 198,225 8,221 (305) 206,141 2033 206,141 8,550 (317) 214,374 2034 214,374 8,891 (329) 222,936 2035 222,936 9,246 (342) 231,840 2036 231,840 9,616 (358) 241,098 2037 241,098 10,000 (373) 250,725 2038 250,725 5,199 (194) 255,730 2039 2040 2041 2042 2043 2044 2045 2046 2047 2048 2049 Total 151,173 (5,614)
Footnotes:
(I)- Based on the current funding levels and decommissioning forecast, the decommissioning contributions for Hatch Unit Two are being suspended.
Date: 3/23/20 17; Time: 9:52 AM
Edwin I. Hatch Nuclear Plant Financial Assurance Requirements for Decommissioning Nuclear Power Reactors Enclosure 4 Dalton Utilities Response
~
Dalton UTILITIES 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. Dalton Utilities (Dalton) 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 Dalton.
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, Dalton Utilities, by, Enclosure 1200 V.D. Parrott, Jr. Parkway + P.O. Box 869 -"' Dalton, GA 30722 " 706.278.1313 *' 706.278.7230 Fax "" www.dutil.com ffptilinR What is P 0 S S IB L E:
Enclosure Edwin 1. Hatch Nuclear Plant Dalton Utilities Ownership Percentage - 2.2%
10 CFR 50.75(1)(1) Requirement Unlt1 Unlt2 1 The NRC minimum decommissioning estimate, 2 $1 4,222,000 2 pursuant to 10 CFR 50.75(b) and (c). 1 $14,222,000 2 The amoll\1 accumulated at the end of the $17,597,318 calendar year preceding the data of the report for
$18,213,368 Items Included In 10 CFR 50.75(b) and (c).
3 A schedule of the annual amounts remaining to be Sea Schedule In Sea Schedule In coDectad; 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 2.4U 2.41%
costs; (b) rates of earnings on decommissioning 3.27% 3.27%
funds; (c) real rate of return; and .86% .86%
(d) rates of other factors used In funding N/A N/A projections.
5 Any contracts upon which the licensee Is relying purauant t~ 10 CFA 50.75(a)(1)(v). None None 6 Any modftcatlona to a Dcenaee'a CII'Tenl method None None oI providing financial assurance occurring since the laataubmlttad report.
7 Any material changes to trust agreements. None None NOTES:
1 The NRC formulas In aactlon 10 CFR 50.75(c) Include only those decommissioning coats lncurrad by licensees to remove a facility or site safely from service and reduce residual radioactivity to levels that permit: (1) release of the property lor 11\restr!cted usa and termination of the llcanse; or (2) release of the property under rasirictad conditions and termination of the license. The cost of dismantling or demolishing non-radiological systems and structures t. not Included In the NRC decommissioning cost estimates. The costa of managing and storing spent fuel on*alle untD transfer to DOE are not Included In the coat formulas.
2 This amount Ia baaed on NUREG*1307, Rev. 15, for the burial factor(OpUon 2) and the Decamber2014 BLS data lor labor and energy.
' f': '.*~
Attachment 1 Schedule of the Annual Amounts Remaining to be Collected
Attachment 1 Schedule of the Annual Amounts Remaining to be Collected Dalton Utilities 2016 NRC MINIMUM Hatch 1 Hatch 2 Earnings Rate 2.269 Earnings Rate 2.269 Balance Balance Balance Balance Year Beginning of Year Earnings Contribution End of Year Year Beginning of Year Earnings Contribution End of Year 2016 19,257,118 436,944 0 19,694,062 2016 19,142,931 434,353 0 19,577,284 2017 19,694,062 446,858 0 20,140,920 2017 19,577,284 444,209 0 20,021,493 2018 20,140,920 456,997 0 20,597,918 2018 20,021,493 454,288 0 20,475,780 2019 20,597,918 467,367 0 21,065,285 2019 20,475,780 464,595 0 20,940,376 2020 21,065,285 477,971 0 21,543,256 2020 20,940,376 475,137 0 21,415,513 2021 21,543,256 488,816 0 22,032,072 2021 21,415,513 485,918 0 21,901,431 2022 22,032,072 499,908 0 22,531,980 2022 21,901,431 496,943 0 22,398,374 2023 22,531,980 511,251 0 23,043,231 2023 22,398,374 508,219 0 22,906,593 2024 23,043,231 522,851 0 23,566,082 2024 22,906,593 519,751 0 23,426,344 2025 23,566,082 534,714 0 24,100,796 2025 23,426,344 531,544 0 23,957,888 2026 24,100,796 546,847 0 24,647,643 2026 23,957,888 543,604 0 24,501,492 2027 24,647,643 559,255 0 25,206,898 2027 24,501,492 555,939 0 25,057,431 2028 25,206,898 571,945 0 25,778,843 2028 25,057,431 568,553 0 25,625,984 2029 25,778,843 584,922 0 26,363,764 2029 25,625,984 581,454 0 26,207,438 2030 26,363,764 598,194 0 26,961,958 2030 26,207,438 594,647 0 26,802,085 2031 26,961,958 611,767 0 27,573,725 2031 26,802,085 608,139 0 27,410,224 2032 27,573,725 625,648 0 28,199,373 2032 27,410,224 621,938 0 28,032,162 2033 28,199,373 639,844 0 28,839,217 2033 28,032,162 636,050 0 28,668,212 2034 28,839,217 654,362 0 29,493,579 2034 28,668,212 650,482 0 29,318,693 2035 29,318,693 665,241 0 29,983,934 19,886,566 2036 29,983,934 680,335 0 30,664,270 NRC Minimum 2037 30,664,270 695,772 0 31,360,042 from 2/17 letter 2038 31,360,042 711,559 0 32,071,602 21,942,483 NRC Minimum from 2/171etter