NL-19-0284, Financial Assurance Requirements for Decommissioning Nuclear Power Reactors

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Financial Assurance Requirements for Decommissioning Nuclear Power Reactors
ML19091A304
Person / Time
Site: Hatch  Southern Nuclear icon.png
Issue date: 04/01/2019
From: Gayheart C
Southern Nuclear Operating Co
To:
Document Control Desk, Office of Nuclear Reactor Regulation
References
NL-19-0284
Download: ML19091A304 (25)
v • d • e


Text

.. Southern Nuclear Regulatory Affa1rs 3535 Colonnade Parkway Bmnmgham. AL 35243 205 992 5000 tel 205 992 7601 fax APR 0 1 2019 Docket Nos.: 50-321 NL-19-0284 50-366 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 (SNC) holds operating licenses DPR-57 and NPF-5 for the Edwin I.

Hatch Nuclear Plant (HNP) 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).

Due to underperformance of its nuclear decommissioning trust (NOT) in the 4th quarter of 2018, Oglethorpe Power projected a shortfall in its HNP Unit 2 fund . However, since December 31 ,

2018, the NOT has overperformed. Based on a recomputed projection using additional earnings gained through February 28, 2019, the recalculated shortfall, when combined with the surplus in the HNP Unit 1 NOT, results in an overall surplus above the NRC minimum. Accordingly, SNC concludes that no further action is required at this time to demonstrate adequate funds will be available for decommissioning Plant Hatch, Units 1 and 2.

This letter contains no NRC commitments. If you have any questions, please contact Jamie Coleman at 205.992.6611 .

Respectfully submitted ,

efb/scm

NRC Decommissioning Fund Status Report- Hatch NL-19-0284 Page 2

Enclosures:

1. Georgia Power Company Response
2. Oglethorpe Power Corporation Response
3. Municipal Electric Authority of Georgia Response
4. Dalton Utilities Response cc: Regional Administrator, Region II NRR Project Manager, Hatch 1 & 2 Senior Resident Inspector, Hatch 1 & 2 SNC Record RType: CHA02.004

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 Allanla. GA 30308 404 506 0997 tel dporoch@soulhornco com March 15,2019 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(0()))

Dear Ladies and Gentlemen:

Pursuantto IOCFR 50.75(0(l),eachpowerreactorlicenseeisrequired 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(t)(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,

~~

~7~

Vice President & Comptroller Enclosure Page 1 of6

NRC Minimum Decommissioning Funding Requirement for the Edwin 1. Hatch Nuclear Plant (2018 Dollars)

The following table represents the indexes and calculation used in the March 2019 submittal :

Tablel Marth 2D19 Submittal Fonnulas Calculations 1986 NRC Minimum Funding Requirement 10 $104,000,000 +9,0CDIPI

$129,236,000 CI'A S0.7Sicllllllll 5104.000,000 + 9.00012.8041 10 CFR S0.751cll21 Adlusunent Factor S129.236.000X (.65L+ .UE + .2281 labor Factor Ill 200Sindtrx 1.98 (20051ndex X Qtr 4 20181nde*l/100 Qtr 4 20181nde* Used (See Enclosure Bl uz.so Tolilllabor Escal~tlon (l) 2.624 Energy Factor lEI Industrial Electric Power Faaor (PI , O.S4P + 0.46F 19861ndu 114.2 (09-20181ndex /19861ndex) 09/20181ndex Used (See Endasure 91 2554 Totallndustrl~l Electric PawerEscal~tlon (PI 2.236 U~tht Fuel Oil Factor IFl 19861ndex 82.0 (09-20181ndex /19861ndex) 09/2018 Index Used (See Ellclosure 10) 249.1!

Total Uaht Fuel Oils ~latlan (F) 3.046 ElleriY Escalallan Factor lEI I O.S4P + 0.461' (0.54 X 2.236)+ (0.46 X3 046) 2.60!1 Tolill EneiEV Escal~tlon (E) L207*+U012 Waste Bllrl~l Factor (8)(5ee (ndosure 11)

Gtrneratars located In unalllllated states and 1!.422 those located In compact*affillated sliltes hiving no disposal facility NRC Minimum Decommissioning Requirement 10 CFR 50 7Slcll2l Adlll$tment Factor 5129,236,000 X(.65l+ .UE + .228) 10 CFR S0.7Sicll21 AdJustment Factor Sl29,236,000X (.65(2.624) + .13{2.6091 + .22(13.422J)

NRC Mlnlmum Dec:ommlsslonlnc Requl111ment

$&115,828,92D Per Unit (21118 OoUan)

Geoflla Power Company% Per Unit (2018 S64S,828,920X SD.l" (GI'C Ownenhlp %) $323,56D.289 Dollars)

Page 2 of6

Enclosure 2 Edwln 1. Hatch Nuclear Plant Georgia Power Company Ownership Percentage- 50.1%

Unit 1 Unit2 10 CFR 50.7S(f)(l) Requirement 1 The NRC minimum decommissioning estimate,

$323,560,000 l $323,560,000 l pursuant to 10 CFR 50.75(b) and (c). 1 2 The amount accumulated at the end of the $272,809,588 , $251,964,615 3 calendar year preceding the date of the report for items Included in 10 CFR S0.7S(b) and (c).

3 A schedule of the annual amounts remaining to See Schedule In See Schedule In be 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; 4.49% 4.49%

(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 None None pursuant to 10 CFR 50.75(e)(l)(v).

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 an the last submitted report. external sinking fund with external sinking fund with the sources of funds from the sources of funds from traditional cost of service traditional cost of service ratemaking as ordered by ratemaklng as ordered by the GPSC. the GPSC.

7 Any material changes to trust agreements. None None NOTES:

1 The NRC formulas In section 10 CFR 50.7S(cllnclude only those decommissioning costs Incurred by lkensees 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 lkense; or (2) release or the property under restricted conditions ;md termination of the license. The cost of dismantling or demolishing non*r.~dlologlcalsystems and structures Is not Included In the NRC decommissioning cost estimates.

The costs of managing and storing spent fuel on*slte until transfer to DOE are not Included In the cost formulas.

2 This amount Is based on NUREG-1307, Rev. 17, for the burial factor, the December 2018 BlS data for labor and the September 2018 BLS data for energy.

Page 3 of6

1 This amount represents the December 31, 2018 balance or funds in the external trust designated for license termination and does not include funds identified and held in subaccounts within the eKternal trusts for spent fuel management and decommissioning of spent fuel storage facilities of $7,081,053 for Unit 1 and $15,280,995 for Unit 2, which are funded through rates in accordance with Georgia Public Service Commission Orders.

Page 4 of6

Attachment 1 Schedule of the Annual Amounts Remaining to be Collected Page 5 of6

GEORGIA POWER COMPANY GEORGIA POWER COMPANY NUCLEAR DECOMMISSIONING NUCLEAR DECOMMISSIONING Based on 12/31/2018 Fund Balances Based on 12131/2018 Fund Balances (Amounts In Thousands) (Amounts In Thousands)

HATCH 1 HATCH 2 BEG OF Adjusted END OF BEG OF Adjusted END OF YEAR FUND YEAR

. __YEAR FUND FUND Annual

. __YEAR FUND Annuol 2019 272,810 IN 12.249

'ONTRJ . -**-* L 285,059 YEAR 2019 251,985 11,313 NTR -** -**-*

d -UNDB 263,278 2020 285,059 12,799 297,858 2020 263,278 11.821 275,099 2021 297,858 13,374 311,232 2021 275,099 12,352 287,451 2022 311.232 13,974 325,206 2022 287,451 12,907 300,357 2023 325,206 14,602 339,808 2023 300,357 13,486 313,844 2024 339,808 15,257 355,065 2024 313,844 14,092 327,935 2025 355,065 15,942 371,008 2025 327,935 14.724 342,659 2026 371,008 16,658 387,686 2026 342.659 15,385 358,045 2027 387,666 17,406 405,072 2027 358,045 16.076 374,121 2028 405,072 18,188 423,260 2028 374,121 16,798 390,919 2029 423,260 19,004 442.264 2029 390,919 17,552 408,471 2030 442,264 19,858 462,122 2030 408,471 18,340 426,812 2031 462,122 20.749 482,871 2031 426,812 19,164 445,976

.,"'IJ 2032 482,871 21,681 504,552 2032 445,976 20,024 466,000 466,000 486,923 IQ ID 2033 504,552 22,654 527,206 2033 20,923 Ol 527,206 550,878 _ 2034 486.923 21.863 508,786 a

Ol 2034 ~.61_2 -----

2035 508,786 22,844 531,631 2036 531,631 23,870 555,501 2037 555,501 24,942 580,443 2038 580,443 26.062 - --

606,505 NRC Minimum Estimate at end of license Unit 1 $479,577,409 Unit 2 $529,157,175

Edwin I. Hatch Nuclear Plant Financial Assurance Requirements for Decommissioning Nuclear Power Reactors Enclosure 2 Oglethorpe Power Corporation Response

OglethorpePower March 28, 2019 Docket Nos.: 50-321 50-366 US 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(0 (1))

Dear Ladies and Gentlemen:

Pursuant to 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. 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 50.7S(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, OGLETHORPE POWER CORPORATION, by,

~J.~

Anne F. Appleby Vice President, Treasurer Enclosure cc: Elizabeth Higgins, OPC Lori Holt, OPC

Enclosure Edwin I. Hatch Nuclear Plant Oglethorpe Power Corporation Ownership Percentage - 30%

10 CFR 50 75(f)(1) Requirement Unit 1 Unit 2 The NRC minimum decommissioning estimate, 1 pursuant to 10 CFR50.75(b) and (c). 1 $ 193,749,000 2

$ 193,749,000 2 The amount accumulated at the end of the calendar 2 year preceding the date of the report for items included 145,635,233 $ 114,495,089 in 10 CFR 50.75(b) and (c)

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

(a) rates of escalation in decommissioning costs; 2.80% 2.80%

(b) rates of earnings on decommissioning funds;* 5.00% 500%

(c) real rate of return 2.20% 220%

(d) rates of other factors used in funding projections none none Any contracts upon which the licensee is relying 5 pursuant to 10 CFR 50.(e)(1)(v). None None Any modifications to licensee's current method of providing financial assurance occurring since the last 6 submitted report.

None None 7 Any material changes to trust agreements. None None

  • As a rural electric cooperative, OPC's budget is approved by its Board of Directors annually. The budget includes a 5% rate of earnings assumption for Hatch and Vogtle Nuclear Decommissioning Trust Funds The 5% rate of earnings assumptions less the 2.80% escalation rate results in a real rate of 2.20%.

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.17, for the burial factor, the December 2018 BLS data for labor and the September 2018 BLS data for energy.

Page 2 of 4

Attachment 1 December 31, 2018 Schedule of the Annual Amounts Remaining to be Collected Oglethorpe Power Corporation 2018 NRC MINIMUM Hatch 1 Hatch2 Eammgs Rate: s Earnings Rate: s llalance Balance llalance Balance Year llcgin Year Eammgs Contribution End Year Year Begin Year Earnings Contnbution End Year 2019 145,635,233 7,281,762

0 -----------* 152,916,995 2019 114,495,089 5,724,754 0 120,219,843 2020 152,916,995 7,645,850 0 160,562,845 2020 120,219,843 6,010,992 0 126,230,835 2021 160,562,845 8,028,142 0 168,590,987 2021 126,230,835 6,311,542 0 132,542,377 2022 168,590,987 8,429,549 0 177,020,536 2022 132,542,377 6,627,119 0 139,169,496 2023 177,020,536 8,851,027 0 185,871,563 2023 139,169,496 6,958,475 0 146,127,970 2024 185,871,563 9,293,578 0 195,165,141 2024 146,127,970 7,306,399 0 153,434,369 2025 195,165,141 9,758,257 0 204,923,398 2025 153,434,369 7,671,718 0 161,106,087 2026 204,923,398 10,246,170 0 215,169,568 2026 161,106,087 8,055,304 0 169,161,392 2027 215,169,568 10,758,478 0 225,928,046 2027 169,161,392 8,458,070 0 177,619,461 2028 225,928,046 11,296,402 0 237,224,449 2028 177,619,461 8,880,973 0 186,500,434 2029 237,224,449 11,861,222 0 249,085,671 2029 186,500,434 9,325,022 0 195,825,456 2030 249,085,671 12,454,284 0 261,539,955 2030 195,825,456 9,791,273 0 205,616,729 2031 261,539,955 13,076,998 0 274,616,953 2031 205,616,729 10,280,836 0 215,897,565 2032 274,616,953 13,730,848 0 288,347,800 2032 215,897,565 10,794,878 0 226,692,444 2033 288,347,800 14,417,390 0 302,765,190 2033 226,692,444 11,334,622 0 238,027,066 2034 302,765,190 15,138,260 0 ~17.~3,11~ 2034 238,027,0(,6 11,901,353 0 249,928,419 2035 249,928,419 12,496,421 0 262,424,840 2036 262,424,840 13,121,242 0 275,546,082 3U 1,390,323 2037 275,546,082 13,777,304 0 289,323,386 2018 NRC Mmimum 2038 289,323,386 14,466,169 0 3\)~7~~SG Hscnlatl-d nr 21111'

  • 336,5!XJ,42')

20tH NRC Minimum ESC11l1tal nt 21!1.1".

Notes:

  • 1bc projected shortfall for Hatch Unit 2 can be remedred through improved investment pcrfonnance, a transfer of excess fund balances from I latch Unit 1, and/ or future contributions.
  • Sec Auachmcnt 2 which uses 2/28/2019 balances as the beb>inrung balances for year 2019. The forecasted surplus for I latch Unit I addresses the the forecasted shortfall for !latch Unit 2.

Page 3 of4

Attachment 2 February 28, 2019 Schedule of the Annual Amounts Remaining to be Collected Oglethorpe Power Corporation .

2018 NRC MINIMUM Hatch 1 Hatch2 Earning* Rate* 5 Earnings Rate: 5 llalancc Balance Balance l:lalance End Year Earnings Contribution End Year Ycu llcgm Yc:u Earnings Contnbution Year Bcg1n Ycv:

2019 157,410,026 7,870,501 0 165,280,527 2019 12l,752,161 6,187,608 0 129,939,769 2020 165,280,527 8,264,026 0 173,544,554 2020 129,939,769 6,496,9!!8 0 136,436,758 2021 173,544,554  !!,677,228 0 182,221,7!!1 2021 136,436,758 6,!121,!!3!! 0 143,25!!,596 2022 182,221,781 9,111,0!!9 0 191,332,870 2022 14l,258,596 7,162,930 0 150,421,525 2023 191,332,870 9,566,644 0 200,!!99,514 2023 150,421,525 7,521,076 0 157,942,602 2024 200,899,514 10,044,976 0 210,944,490 2024 157,942,602 7,897,130 0 165,839.7l2 2025 210,944,490 10,547,224 0 221,491,714 2025 165,839,732 8,291,987 0 174,131,718 2026 221,491,714 11,074,586 0 232,566,300 2026 174,131,718 8,706,586 0 182,838,304 2027 232,566,300 11,628,315 0 244,194,615 2027 182,838,304 9,141,915 0 191,980,220 2028 244,194,615 12,209,731 0 256,404,346 2028 191,980,220 9,599,011 0 201,579,231 2029 256,404,346 12,820,217 0 269,224,563 2029 201,579,231 10,078,962 0 211,658,192 2030 269,224,563 13,461,228 0 282,685,791 2030 211,658,192 10,582,910 0 222,241,1 02 2031 282,685,791 14,134,290 0 296,820,081 2031 222,241,102 11,112,055 0 233,353,157 2032 296,820,081 14,841,004 0 311,661,085 2032 233,353,157 11,667,658 0 245,020,815 2033 311,661,085 15,583,054 0 327,244,139 2033 245,020,815 12,251,041 0 257,271,855 2034 327,244,139 16,362,207 0 ~MQ§.3{§ 2034 257,271,855 12,863,593 0 270,135,448 2035 270,135,448 13,506,772 0 283,(,42,221 2036 283,642,221 14,182,111 0 297,824,332 301,390.,21 2037 297,824,332 14,891,217 0 312,715,548 2018 NRC 1\hnimum 2038 312,715,548 15,635,777 0 3211,351,3~

H"nlntcd at 2.RO"

  • 33Ci,590,429 2018 NRC Mintmum EK:IIatL-d nt 280" a Page4 of4

Edwin I. Hatch Nuclear Plant Financial Assurance Requirements for Decommissioning Nuclear Power Reactors Enclosure 3 Municipal Electric Authority of Georgia Response

March 15, 2019 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 (1 0 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, MUNICIPAL ELECTRIC AUTHORITY OF GEORGIA, by, Eaward E. asterlin Senior Vice President, Chief Financial Officer Enclosure Municipal Electric Authority of Georgia 1470 Rlveredge Parkway, NW Page 1 of 5 Atlanta, Georgia 30328*4640 1-800-333-MEAG n0-563-0300

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 pursuant to 10 CFR 50.75(b) and (c).

1 $114,312,000 2 $114,312,000 2 The amount accumulated at the end of the calendar year preceding the date of the report for $118,551,119 $118,328,396 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 2.50% 2.50%

costs; (b) rates of earnings on decommissioning 4.50% 4.50%

funds; 2.00% 2.00%

(c) real rate of return; (d) rates of other factors used in funding None None ns.

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:

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. 17, for the burial factor, the December 2018 BLS data for labor and the September 2018 BLS data for energy.

Page 2 of5

Attachment 1 Schedule of the Annual Amounts Remaining to be Collected Page 3 of 5

MEAG Power Decommissioning Funding Plan Nuclear Decommissioning Fund- Hatch 1 (Dollars in thousands)

Calendar Balance at Less: Balance at Year Beg ofYear Contributions (I) Earnings Fees End of Year (A) (B) (C) (ll) (E) 2018 118,551 2019 118,551 5,332 (183) 123,700 2020 123,700 5,563 {191) 129,073 2021 129,073 5,805 (199) 134,679 2022 134,679 6,057 (207) 140,529 2023 140,529 6,320 (216) 146,633 2024 146,633 6,595 (226) 153,002 2025 153,002 6,881 (235) 159,648 2026 159,648 7,180 (245) 166,582 2027 166,582 7,492 (256) 173,819 2028 173,819 7,817 (267) 181,369 2029 181,369 8,157 (278) 189,248 2030 189,248 8,511 (290) 197,469 2031 197,469 8,881 (303) 206,047 2032 206,047 9,267 (316) 214,998 2033 214,998 9,670 (330) 224,338 2034 224,338 6,726 (229) 230,835 2035 2036 2037 NRC Minimum Estimate 2038 $169,696,807 2039 2040 2041 2042 2043 2044 2045 2046 2047 2048 2049 2050 2051 Total 116,256 {3,972)

Footnotes:

(1)- Based on the current funding levels and decommissioning forecast, the decommissioning contributions for Hatch Unit One are being suspended.

Decom Model (NRC Minimum 030619) xlsm Page 4 of 5

MEAG Power Decommissioning Funding Plan Nuclear Decommissioning Fund- Hatch 2 (Dollars in thousands)

Calendar Balance at Less: Balance at Year Beg. of Year Contributions (I) Earnings Fees End of Year (A) (B) (C) (D) (E) 2018 118,328 2019 118,328 5,322 (183) 123,468 2020 123,468 5,553 (190) 128,830 2021 128,830 5,794 (199) 134,426 2022 134,426 6,046 (207) 140,265 2023 140,265 6,308 (216) 146,357 2024 146,357 6,582 (225) 152,714 2025 152,714 6,868 (235) 159,348 2026 159,348 7,167 (245) 166,269 2027 166,269 7,478 (256) 173,492 2028 173,492 7,803 (267) 181,028 2029 181,028 8,142 (278) 188,892 2030 188,892 8,495 (290) 197,098 2031 197,098 8,864 (302) 205,660 2032 205,660 9,250 (315) 214,594 2033 214,594 9,651 (329) 223,916 2034 223,916 10,071 (343) 233,644 2035 233,644 10,508 (358) 243,794 2036 243,794 10,965 (376) 254,382 2037 254,382 11,441 (392) 265,431 2038 265,431 5,969 (204) 271,196 2039 2040 2041 NRC Minimum Estimate 2042 $187,313,523 2043 2044 2045 2046 2047 2048 2049 2050 2051 Total 158,277 (5,41 0)

Footnotes:

(I) - Based on the current funding levels and decommissioning forecast, the decommissioning contributions for Hatch Unit Two arc being suspended.

Page 5 of5 Decom Model (NRC Minimum 030619) .xlsm

Edwin I. Hatch Nuclear Plant Financial Assurance Requirements for Decommissioning Nuclear Power Reactors Enclosure 4 Dalton Utilities Response

11 Dalton UTILITIES 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(0(1})

Dear Ladies and Gentlemen:

Pursuant to 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. Dalton Utilities (Dalton) 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 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.o. Parrott, Jr. Parkway

  • P.O. Box 869 ~ Dalton, GA 30722
  • 706.278.1313
  • 706.278.7230 Fax
  • www.dutil.com jlptilinR Wb1ti< POSSIBLe :

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NRC Minimum Decommissioning Funding Requirement for the Edwin I. Hatch Nuclear Plant (2018 Dollars)

The following table represents the indexes and calculation used in the March 2019 submittal:

Table 1 March 2019 Submittal Formulas Calculations 1986 NRC Minimum Funding Requlreml!nt 10 $104,000,000 + 9,000{P)

$129,236,000 CFR S0.75(c)(l)(lll $104,000,000 + 9,000(2.804) 10 CFR SO. 7S(cl(2) Adjustment Factor $129,236,000 )(_{,65L + .13E + .228)

Labor Factor (l) 2005 lndeK 1.98 (2005 Index X Qtr 4 20181ndex)l100 Qtr 4 20181ndelt Used (See Enclosure 8) 132.50 Total Labor Escalation Ill 2.624 Energy Factor (E) O.S4P + 0.46F Industrial Electric Power Factor (P) 19861ndex 114.2 (09-2018 Index I 19851ndex) 0912018 Index Used (See Enclosure 9) 255.4 Total Industrial Electric Power Escalation (PI 2.236 Ught Fuel Oil Factor (F) 19861ndeK 82.0 (09*2018 Index I 19861ndex) 09/2018 Index Used (See Enclosure 10) 249.8 Total Ught Fuel Oils Escalation (FI 3.046 Energy Escalation Factor (E) O.S4P + 0.46F (0.54 X 2.236) + (0.46X 3.046) 2.609 Total Enerw Escalation (E) 1.2074 + 1.4012 Waste Burial Factorffi(See Enclosure ll)

Generators located In unaffiliated states and 13.422 those located in compact-affiliated states having no disposal raci11tv NRC Minimum Decommissioning Requirement 10 CFR S0.75(c)(2) Adjustment Factor $129,236,000X (.6SL+ .13E + .228) 10 CFR 50.7S(cl(2) Adjustment Factor $U9,236,000X (.65(2.624) + .13(2.609) + .22Jl3.422))

NRC Minimum Decommissioning Requirement

$645,828,920 Per Unit [2018 Dollars)

City of Dalton% Per Unit (2.018 Dollan) $645,828,920X 2.2% (Dalton Ownership "I $14,208,236 Page 2 of4

Edwin I. Hatch Nuclear Plant Dalton Utilities Ownership Percentage - 2.2%

Unit 1 Unit 2 10 CFR 50. 75(f)(1) Requirement 1 The NRC minimum decommissioning estimate,

$14,208,000 2

$14,208,000 ,

pursuant to 10 CFR 50.7S(b) and (c). 1 2 The amount accumulated at the end of the calendar year preceding the date of the report

$19,876,202 $20,029,025 for items included in 10 CFR 50.75(b) and (c).

3 A schedule of the annual amounts remaining to See Schedule in See Schedule in be collected; for items in 10 CFR 50.7S(b) and (c). Attachment 1 Attachment 1 4 The assumptions used regarding:

(a) rates of escalation in decommissioning 2.80% 2.80%

costs; (b) rates of earnings on decommissioning 2.02% 2.02%

funds; (c) real rate of return; and (.78%) (.78%)

(d) rates of other factors used in funding N/A N/A projections.

5 Any contracts upon which the licensee is relying None None pursuant to 10 CFR 50.7S(el{l)(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. None None NOTES:

1 The NRC formulas in section 10 CFR 50.75(c) mclude only those decommissioning costs Incurred by licensees to remove a fa cility 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. 17, for the burial factor, the December 2018 BLS data for labor and the September 2018 BLS data for energy.

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The Water, Light and Sinking Fund Commission of The City of Dalton, GA D/B/A Dalton Utilities Dalton Balance end of license NRC Minimum Nuclear Decommissioning Funds Unit 1 $27,371,494 $22,101 ,553 Investment Balances Unit 2 $29,879,009 $24,682,846 December 31 , 2018 Bank of New York Mellon Bank of New York Mellon Total Funds Carrving Value Market Value Par Value Carrvinq Value Market Value Par Value Carrying Value Market Value Par Value Plant Hatch Unit 1 12,733,250 12,540,218 12,733,250 7,606,887 7,335,984 7,493,923 20,340,137 19.876,202 20,227,173 "0

Dl

<C (1) Unit 2 12,490,008 12,636,636 13,073,000 7,461,573 7,392,389 7,693,877 19,951,581 20,029,025 20,766.877

.ro.

5I.

.ro. Total 25,223,258 25,176,854 25,806,250 15,068,460 14,728,373 15,187,800 40,291 ,718 39,905,227 40,994 ,050 Plant Voqtle Unit 1 6,875,823 6,799,318 6,876,000 4,107,640 3,977,577 4,046,745 10,983,463 10,776,895 10,922,745 Unit 2 6,588,000 6,514,599 6,588,000 3,935,694 3,811,018 3,877,248 10,523,694 10,325,617 10,465,248 Total 13,463,823 13,313,917 13,464,000 8,043,334 7,788,595 7,923,993 21,507,157 21,102,512 21,387,993 Grand Total 38,687,081 38,490,771 39,270,250 23,111,794 22,516,968 23,111,793 61,798,875 61,007,739 62,382,043 2018 Nuclear Decomm Funds-NRC Fil1ng

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