NL-19-0285, Financial Assurance Requirements for Decommissioning Nuclear Power Reactors

Financial Assurance Requirements for Decommissioning Nuclear Power Reactors

ML19091A299
Person / Time
Site:	Vogtle
Issue date:	04/01/2019
From:	Gayheart C Southern Nuclear Operating Co
To:	Document Control Desk, Office of Nuclear Reactor Regulation
References
NL-19-0285
Download: ML19091A299 (25)

Text

~ Southern Nuclear APR 0 1 2019 Docket Nos.: 50*424 50*425 U. S. Nuclear Regulatory Commission ATIN: Document Control Desk Washington, D. C. 20555*0001 Regulatory Affairs Vogtle Electric Generating Plant, Unit 1 & 2 Financial Assurance Requirements for Decommissioning Nuclear Power Reactors Ladies and Gentlemen:

3535 Colonnade Parkway Birmingham, AL 35243 205 992 5000 tel 205 992 7601 fax NL*19*0285 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-68 and NPF*81 for the Vogtle Electric Generating Plant (VEGP) 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 VEGP 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 VEGP Unit 2 fund has a 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.

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 - Vogtle NL-19-0285 Page2

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, Vogtle 1 & 2 Senior Resident Inspector, Vogtle 1 & 2 SNC Record RType: CVC7000

Vogtle Electric Generating Plant Unit 1 and 2 Financial Assurance Requirements for Decommissioning Nuclear Power Reactors Georgia Power Company Response

~ Georgia Power March 15,2019 Docket Nos.: 50-424 50-425 U.S. Nuclear Regulatory Commission ATTN: Document Control Desk Washington. D.C. 20555 David Poroch Vice President & Comptroller Vogtlc Electric Generating Plant Financial Assurance Requirements for Decommissioning Nuclear Power Reactors ( 10 CFR 50.75(0( I))

Dear Ladies and Gentlemen:

24 1 Ralph McGill Blvd, NE Atlanta, GA 30306 404 506 0!!9i tel dparoch@southernco com Pursuantto 10 CFR 50.75(f)(l),eachpowerreactorliccnsceisrequired to repon to the NRC the status of its decommissioning funding for each reactor or part of each reactor il owns on a calendar year basis, beginning on March 31, 1999, and every two years thereafter. Accordingly, Georgia Power Company (GPC) hereby sub miLt; the enclosed information in accordance wilh 10 CFR 50. 75(f)( I) for operating licenses NPF-68 and NPF-81 issued for Vogtle Electric Genemting Plant Units I and 2, respectively. Southern Nuclear Operating Company, as the operating licensee and as an agent for the owners of the Vogtle Electric Generating Plant, is providing this information to the NRC on behalf ofGPC.

Based on the information presented herein, there is reasonable assurance that the funding necessary for decommissioning the Vogtle Electric Generating Plant, consistent with the NRC prescribed minimum set fonh in 10 CFR 50.75(c), will be available on the expiration date of operating licenses NPF-68 and NPF-8 I.

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 Page 1 of6

NRC Minimum Decommissioning funding Requirement for the Vogtle Electric Generating Plant 12018 Dollars)

The foltowing table represents the indexes and calculation used in the March 2019 submittal*

Table 2 Marth 2019 Submittal Formulas

~lculatlons 1986 NRC Minimum Fundlnc Requlram1nt 10

$1115,000,000 CFR S0.7S(tJ(lJ(I}

10CFAS0.75(c)(2) Adjustment Factor

$105,000.000 X (.&Sl +.13E +.228)

Labor Factor (L) 20051nde*

(20051ndex X Qtr 4 20181ndex)/100 L98 Qtr 4 20181ndex Used (See Endosure Bl 132..50 Total Labor Escalation l!l 2.624 Enei'IY Factor (EJ O.SSP + 0.42F

• lndusulal Electric Power Factor (P) 19861ndex (CJI3.20181ndex/l9861ndea) 114.2 09/201Bindex Used (See Endosure 9}_

255.4 Total Industrial Electric Power Escalation !PI 2.236 Ugh I Fuel 011 Factor {I')

19861ndex (09-20181ndex/19861ndex) 82.0 09/20181ndex Used (See Enclosure 10) 249.8 Total Uaht Fuel Oils Escalation (F) 3.046 Enem Escalation F;ac;tor lEI O.SBP + 0. 42F (0.58 X 2.236) + [0.42 X 3.046J Z.$77 Total Enei'IY Esalatlon (EI.

1.2969 + 1.2793 Waste Burial Factor (B) (See Endosure Ul Generators located in unaffiliated states and 12.853 those located In compact*affillated states having no disposal fatillty.

NIIC Minimum Decommlsslonln& Requirement 10CFR S0.7Slc)(2) AdJustment Factor

$105,000,000 K (.65l +.13E +.228) 10CFR.S0.7Slcll21 AdJustment Factor

$105,000,000 X (.65(2.624) +.13(2.577) +.22(12.853))

NRC Minimum Decommlsslonlnc Aequl1'1!ment

$511,128,646 Per Unit [2018 Dalhus)

Geoflla Power Company% Per Unit (2018

$511,128,646 X 45.7% (GPC Ownership%)

$233,585,791 Oollanl Page 2 of6

1 2

3 4

5 6

7 NOTES:

Vogtle Electric Generating Plant Georgia Power Company Ownership Percentage-45.7%

Unltl 10 CFR 50.75(f}(1) Requirement The NRC minimum decommissioning estimate,

$233,586,000 z pursuant to 10 CFR 50.75(b) and (c). 1 The amount accumulated at the end of the

$136,310,774 3 calendar year preceding the date or the report for Items Included in 10 CFR 50.7S(b) and (c).

A schedule or the annual amounts remaining to See Schedule In be collected; for items in 10 CFR 50.75(b) and (c).

The assumptions used regarding:

(e) rates of escalation In decommissioning 2.49%

costs; (f) rates of earnings on decommissioning 4.49%

funds; (g) real rate of return; and 2.00%

(h) rates of other factors used In funding None projections.

Any contracts upon which the licensee Is relying None pursuant to 10 CFR 50.7S(e)(l)(v).

Any modifications to a licensee's current method No modifications since the of providing flnanclal assurance occurring since last report. Funding Is to an the last submitted report.

external sinking fund with the sources of funds from traditional cost of service ratemaklng as ordered by theGPSC.

Any material changes to trust agreements.

None Unlt2

$233,586,000 z

$147,678,155 3 See Schedule In Attachment!

2.49%

4.49%

2.00%

None None No modifications since the last report. Funding Is to an external sinking fund with the sources of funds from traditional cost of service ratemaklng as ordered by the GPSC.

None 1 The NRC formulas In section 10 CFR 50.7S(c) Include only those decommissioning costs Incurred by licensees to remove a facllltv or site safely from service and reduce residual radioactivity to levels that permit: (1) release of the propeftv 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.

Page 3 of6

1 Tills amount Is based on NUREG-1307, Rev. 17, for the burial factor, the December 2018 Bl5 data for labor and the September 2018 Bl5 data for energy.

1 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 $16,628,273 for Unit 1 and $24,360,487 for Unit 2, which are funded through rates in accordance with Georgia Public Service Commission Orders.

Page 4 of6 Schedule of the Annual Amounts Remaining to be Collected Page 5 of6

"J?

co CD 0>

Q, 0>

2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 2036 2037 2038 2039 2040 2041 2042 2043 2044 2045 2046 2047 BEG OF YEAR 138,311 142.944 149.875 157,117 164,684 172,591 180,853 189,486 198,507 207,933 217.781 228,073 238.826 250062 261,802 274,070 286.888 300.282 314,278 328,902 344,182 380,148 376,832 394.264 412,479 431,512 451,400 472181 493,894 GEORGIA POWER COMPANY NUCLEAR DECOMMISSIONING Based on 12131/2018 Fund Balances (Amounts In Thousands)

FUND NG 6,138 6438 6,747 7072 7,412 7,767 8,138 8526 8931 9,354 9,796 10,258 10,741 11,245 11,773 12323 12,899 13,500 14,129 14.785 15471 16,188 16,937 17,720 18,538 19.393 20.286 21219 22,176 VOGRE1 FUND c

495 495 495 495 495 495 495 495 495 495 495 495 495 495 495 495 495 495 495 495 495 495 495 495 495 495 495 495 Adjusted Annual

-* ~-*-

• NRC Minimum Estimate at end of license Unit 1

$476,661,539 Unit 2

$500,694,818 END OF YEAR 142,944 149,875 157,117 164,684 172,591 180,853 189,486 198,507 207,933 217,781 228,073 238,826 250,062 281,802 274,070 286,888 300,282 314,278 328,902 344182 380,148 376,832 394,264 412,479 431,512 451,400 472,181 493,894 516,070 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 2038 2037 2038 2039 2040 2041 2042 2043 2044 2046 2041 2047 2048 2049 GEORGIA POWER COMPANY NUCLEAR DECOMMISSIONING Based on 12131/2018 Fund Balances (Amounts In Thousands)

BEG OF YEAR 147 678 154,309 161,237 168,477 176,042 183,946 192,205 200,835 209,852 219,275 229,120 239,408 250,157 261,389 273,126 285,389 298203 311,592 325,583 340,201 355476 371,437 388,115 405541 423,750 442,778 482,657 483.430 505,138 527,817 551 516 FUND 6,631 6,928 7,240 7,565 7,904 8,259 8,630 9,017 9,422 9,845 10,288 10,749 11,232 11,736 12,263 12,814 13,389 13,990 14,619 15275 15,961 16,678 17,426 18,209 19,026 19,881 20,773 21708 22,681 23,699 24,763 VOGTLE2 Adjusted END OF FUND Annual YEAR 154309 181,237 168,477 176,042 183,946 192,205 200.835 209852 219,275 229,120 239,408 250,157 261,389 273,126 285,389 298 203 311,592 325,583 340201 355,476 371,437 388,115 405 541 423,750 442,776 482657 483430 505,138 527,817 551,516 578,279

Vogtle Electric Generating Plant Unit 1 and 2 Financial Assurance Requirements for Decommissioning Nuclear Power Reactors Oglethorpe Power Corporation Response

March 28, 2019 Docket Nos.: 50-424 50-425 US Nuclear Regulatory Commission Attn: Document Control Desk Washington, D.C 20555 OglethorpePower Vogtle Electric Generating 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. Oglethorpe Power Corporation (OPC) hereby submits the enclosed information in accordance with 10 CFR 50.75 (f)(1) for operating licenses NPF-68 and NPF-81 issued for Vogtle Electric Generating Plant Unit 1 and 2, respectively. Southern Nuclear Operating Company, as the operating licensee and as an agent for the owners ofthe Vogtle Electric Generating 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 Vogtle Electric Generating 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 NPF-68 and NPF-81.

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

Respectfully submitted, OGLETHORPE POWER CORPORATlON, by,

{~)-~

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

1 2

3 4

5 6

7 Enclosure Vogtle Electric Nuclear Plant Oglethorpe Power Corporation Ownership Percentage - 30%

10 CFR 50 75(f)(1) Requirement Unit 1 The NRC mmimum decommissioning estimate, pursuant to 10 CFR50.75(b) and (c). '

153,339,000 The amount accumulated at the end of the calendar year preceding the date of the report for items included 84,962,899 in 10 CFR 50.75(b) and (c).

A schedule of annual amounts remaining to be collected, for items in 10CFR 50 75(b) and (c).

See Schedule in Attachment 1

The assumptions regarding:

(a) rates of escalation in decommissioning costs; 2.70%

(b) rates of earnings on decommissioning funds;*

5.00%

(c) real rate of return 2.30%

(d) rates of other factors used in funding projections none Any contracts upon which the licensee is relying pur!;uant to 10 CFR 50.(e)(1 )(v).

None Any modifications to licensee's current method of None providing financial assurance occurring since the last submitted report.

Any material changes to trust agreements.

None Unit2 2

153,339,000 76,961,942 See Schedule in Attachment 1

2.70%

5.00%

2.30%

none None 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 70% escalation rate results in a real rate of 2.30%.

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 of4 2

December 31, 2018 Schedule of the Annual Amounts Remaining to be Collected Oglethorpe Power Corporation 2018 NRC MINIMUM Vogtlc 1 Vogtlc 2 Earnings Rato Earnings Rare:

Balance Balance

!l:tbnce Balance Year llegm Year Earnmgs Contribullon r:nd Year Year llcgin Year Earnings Contril>ulion End Year

• --* ---*-*-*** --- ~---* ---*----*----- -4*-* --*-*-******-----** ------- ----------------

2019 84,962,899 4,24!1,1<15 0

89,211,044 2019 76,961,942 3,848,097 0

2020 89,211,044 4,460,552 0

93,671,5%

2020 A0,810,039 4,040,502 0

2021 93,671,596 4,681,580 0

98,355,176 2021 84,850,541 4,242,527 0

2022 9!!,355,176 4,917,759 0

101,272,935 2022 89,093,068 4,454,653

()

2023 103,272,935 5,163,647 0

108,436,582 2023 93,547,721 4,677,386 0

2024 108,436,5112 5,421,829 0

113,85fl,411 2024 98,225,107 4,911,255 0

2025 113,858,411 5,692,n1 0

119,551,331 2025 103,136.363 5,156,818 0

2026 119,551,331 5,977,567 0

I 25,528,898 2026 108,293,181 5,414,659

{)

2027 125,528,898 6,276; 145 0

U1,805,H3 2027 1\\3,707,840 5,685,392 0

2028 131,805,343 6,590,267 0

nH,395,610 2028 119,393,232 5,969,662 0

2029 138,395,61 u 6,91'!,780

()

145,315,390 2029 125.362,893 6,268,145 0

2030 145,315,390 7,265,770 0

152,581,160 2030 131,631,038 6,581,552 n

2031 152,581,160 7,629,058

()

160,210,21 8 2031 138,212,590 6,910,630 0

2012 160,210,218 8,010,511 0

168,220,729 2032 145,123,220 7,256,161 0

20~3 168,220,729 8,411,036

()

176,631,765 2033 152r179,380 7,618,969 0

2034 176,631,765 8,831,5118 0

11l5,463,353 21134 159,9911,350 7,999,917 0

2015 185,463,353 9,273,168

()

194,736,521 2035 167,998,267 11,399,913

()

20%

194,736,521 9,7%,826 0

204,473,347 2036 176,398,180 8,819,909 0

2037 204,473,347 10,223,667 0

214,697,015 2037 185,218,089 9,2(>0,904

()

2038 214,697,015 10,73*1,851 0

225,431,865 2038 194,478,994 9,723,950 0

2039 225,431,865 11,271,593 0

236,703,459 2039 204,202,944 10,210,147 0

2040 236,703,459 11,815,173 0

248,5.~11.632 2040 214,413,091 10,7ZO,G55 0

2041 248538,(*32 12,426,932 0

260,965,563 2041 225,133,745 11,256,687 0

2042 260,965,163 13,048,278 0

274,013,841 2042 216,>'!0,432 11,819,522 0

2041 274,013,841 13,700,692 0

287,714,533 2043 248,209,954 12,410.498 0

2044 2117,714,113 14,385,727 0

102,100,260 2044 260,620,452 n,o3I,023 0

2045 302,100,260 li,10'i,013 0

317,205,273 2045 273,651,474 13,682,574 0

2046 117,201,273 15,860,2(,4 0

333,065,53 7 204(,

287,334,048 14,366,702 0

2047 131,0(>5,5H 16,653,277 0

349,7111,813 2047 301,700,751 15,085,038 0

2048 316,785,7811 15,1!39,289 0

21>-19 332,625,077 16,631,254 0

312,043,888 2018 NRC Mmtmum Escalated at 2-70'"

Notes;

• The projected shonfal1 for Vogtlc Unu 2 can be remedied through impmvcd mvesrmcnt performance, a rransfu of excess fund balances from Vogllc Unit I, and/or future wnlrlUuttuns.

• Sec Attachment 2 which uses 2/28/2019 balances as the beginning balances for year 2019. !loth Vogtlc Un.ts show a pro1<etcd surplus.

Page 3 of4 80,810,039 84,850,541 89,093,068 93,547,721 98,225.107 103,136,363 108,293,181 113,707,840 119,393,232 125,362,893 131,631,038 1311,212,590 145,123,220 152,379,380 159,998,350 167,998,267 17(>,398,180 185,218,0R9 194,478,994 204,202,9*14 214,413,091 225,133,745 236,390,432 248,209,954 260,620,452 273,651,474 287,334,048 301,700,751 316,785,788 332,625,077 349,256,331 350,216,318 201K NRC Minimum Escalated at 2. 10* n February 28, 2019 Schedule of the Annual Amounts Remaining to be Collected Oglethorpe Power Corporation 2018 NRC MINIMUM Vogde 1 Vogde 2 1:.amtngs RatL:

5 F.1rnings Ralc:

5

!3alancc Balance llalance llalancc Year Hegm Year H a.rmn~s Conrnbutioo f'nd Year Year Begin Year Earrungs Contribution End Year 2UW 91,!132,257 4,591,613 0

96,423,870 2019 83,184,412 4,159,221 0

87,343,633 2020

%,423,870 4,821,193 0

I 01,245,063 2020 87,343,633 4.367,182 0

91,710,!114 2021 101,245,ll61 5,062,253 0

106,307,317 2021 91,710,814 4,585,541 0

96,296,355 2022 I 06,307,317 5,315,366 I)

I 1 1,622,682 2022 96,296,355 4,814,818 0

101,111,173 21123 1 11,622,682 5,581,134 0

117,203,816 2023 101,111,173 5,055,559 0

I 06,166,731 2024 117,203,816 5,860,191 tl 123,064,007 2024 106,166,731 5,308,337 0

111,475,068 2025 1 23,064,007 6,153,200 tl 129,217,208 2025 1 1 1,4 75,068 5,573,753 0

I 17,048,821 202(>

129,217,208 6,460,860 0

135,678,068 2026 117,048,821 5,852,441 0

122,901,261 2027 135,6 78,068 6,783,903 0

142,461,971 2027 1 22,901,263 6,145,063 0

129,046,326 2028 142,461,971 7,123,099 0

149,585,070 2028 129,046,326 6,452,316 0

IJ5,498,612 2029 149,585,070 7,479,254 0

157,lll>4,124 2029 135,49H,642 6l7711,CJ32 0

142,273,574 2010 157,064,324 7,853,216 0

164,917,540 2030 142,273,574 7,1 13,679 0

14'Jr187,253 2031 164,917,540 8,245,877 0

171,163,417 2031 149,387,253 7,469,363 0

156,!156,615 2032 173,163,417 8,658,171 0

181,821,588 2032 156,856,615 7,842,831 0

IM,61JlJ,446 2033 181,821,588 9,091,079 0

190,912,667 2033 164,699,446 8,234,972 0

172,934,418 2034 190,912,667 9,545,633 0

200,458,300 2034 172,934,418 8,646,721 0

IHI,'i81,139 2035 200,458,300 10,022,915 0

210,481,215 2035 181,581,139 9,079,057 0

190,660,196 21J36 210,481,215 10,524,061 0

221,005,276 2036 190,660, 19G 9,533,010 0

200,193,206 2037 221,005,276 11,050,264 0

232,055,540 2037 200,193,206 10,0<1'),660 0

210,202,866 2018 212,0'i'i,540 11,602,777 0

243,658,317 2038 210,202,866 10,510,141 0

220,713,010 2019 243,(>58, 117 12,182,916

()

255,841,233 2039 220,713,010 11,035,650 0

231,748,660 2040 2'i5,841,233 12,792,062 0

268,6.33,294 2040 231,748,660 11,587,433 0

243,336,093 2041 268,(> 11,294 13,431,665

()

282,064,959 21)41 243,336,093 12,166,805 0

255,502,898 2042 28:!,064,959 14,103,248 0

296,168,207 2042 255,502,89!1 12,775,145 0

268,27B,043 2043 296,168,207 14,808,410 0

3 I 0,976,617 2043 268,278,043 13,413,902 0

281,691,945 2044 310,976,617 15,548,831 0

326,525,448 2044 281,691,945 14,0M,597 0

295,776,542 2045 126,525,448 16,326,272 0

142,851,721 2045 295,776,542 14,788,827 0

310,565,369 2046 342,851,721 17,142,5!16 0

359,994,307 2046 310,565,369 15,528.268 0

326,093,638 2047 359,994,107 17,999,715 0

377,994,022 2047 326,093,638 16,304,682 0

342,398,120 2048 342,398,320 17,119,916 0

359,518,236 2049 359,518,236 17,975,912 0

\\77,494,148 332,043,888 2018 NRC i\\hmmum Escalated at 2.70°4 3'i0,216,318 20'18 NRC ll*hrumum Escalated at 2 70°"

Page4 of4

Vogtle Electric Generating Plant Unit 1 and 2 Financial Assurance Requirements for Decommissioning Nuclear Power Reactors Municipal Electric Authority of Georgia Response

March 15, 2019 Docket Nos.: 50-424 50-425 U. S. Nuclear Regulatory Commission ATTN: Document Control Desk Washington, D.C. 20555 Vogtle Electric Generating Plant Financial Assurance Requirements for Decommissioning Nuclear Power Reactors (1 0 CFR 50. 75(0(1))

Dear Ladies and Gentlemen:

POWER 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, Municipal Electric Authority of Georgia (MEAG) hereby submits the enclosed information in accordance with 10 CFR 50.75(f)(1) for operating licenses NPF-68 and NPF-81 issued for VogUe Electric Generating Plant Units 1 and 2, respectively. Southern Nuclear Operating Company, as the operating licensee and as an agent for the owners of the Vogtle Electric Generating 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 of the Vogtle Electric Generating 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 NPF-68 and NPF-81.

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

Respectfully submitted, MUNICIPAL ELECTRIC AUTHORITY OF GEORGIA, by, Edward E. Easterlin Senior Vice President, Chief Financial Officer Enclosure Page 1 of 5 Municipal Electric Authority or Georgia 1470 Riveredge Parkway, NW Atlanta, Georgia 30328*4640 1-800-333-MEAG 770-563-0300

1 2

3 4

5 6

7 Enclosure Vogtle Electric Generating Plant Municipal Electric Authority of Georgia Ownership Percentage - 22.7%

10 CFR 50.75(f)(1) Requirement Unit 1 The NRC minimum decommissioning estimate, pursuant to 10 CFR 50.75(b) and (c). 1

$116,026,000 2 The amount accumulated at the end of the calendar year preceding the date of the report for

$119,493,045 items included in 10 CFR 50.75(b) and (c).

A schedule of the annual amounts remaining to be See Schedule in collected; for items in 10 CFR 50.75(b) and (c).

The assumptions used regarding:

(a) rates of escalation in decommissioning 2.50%

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

funds; (c) real rate ofretum; and 2.00%

(d) rates of other factors used in funding None projections.

Any contracts upon which the licensee is relying MEAG Power Sales pursuant to 10 CFR 50.75(e)(1)(v).

Contracts Any modifications to a licensee's current method None of providing financial assurance occurring since the last submitted report.

Any material changes to trust agreements.

None NOTES:

Unit2

$116,026,000 2

$115,222,777 See Schedule in 2.50%

4.50%

2.00%

None MEAG Power Sales Contracts None None 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 5 Schedule of the Annual Amounts Remaining to be Collected Page 3 of5

Calendar Year 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 2036 2037 2038 2039 2040 2041 2042 2043 2044 2045 2046 2047 2048 2049 2050 2051 Total MEAG Power Decommissioning Funding Plan Nuclear Decommissioning Fund-Vogtle 1 (Dollars in thousands)

Ba1anccat Less:

Balance at Beg. of Year Contributions (1)

Earning; Fees End of Year (A)

(8)

(C)

(D)

(E) 119,493 119,493 5,374 (184) 124,683 124,683 5,608 (192) 130,098 130,098 5,851 (200) 135,749 135,749 6,105 (209) 141,645 141,645 6,370 (218) 147,798 147,798 6,647 (227) 154,217 154,217 6,936

{237) 160,916 160,916 7,237 (247) 167,906 167,906 7,552

{258) 175,200 175,200 7,880 (269) 182,810 182,810 8,222 (281) 190,751 190,751 8,579 (293) 199,037 199,037 8,952 (305) 207,684 207,684 9,341 (319) 216,706 216,706 9,746 (332) 226,120 226,120 10,170 (347) 235,943 235,943 10,612 (361) 246,193 246,193 11,073 (380) 256,886 256,886 11,553 (396) 268,044 268,044 12,055

{413) 279,686 279,686 12,579 (431) 291,834 291,834 13,125

{455) 304,505 304,505 13,695 (474) 317,726 317,726 14,290 (495) 331,521 331,521 14,910 (516) 345,915 345,915 15,558 (538) 360,935 360,935 16,233 (561) 376,607 376,607 16,938 (585) 392,960 392,960 1,473 (51) 394,382 NRC Minimum Estimate

$237,436,464 284,663 (9,773)

Footnotes:

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

Decom Model (NRC Minimum 030619) xlsm Page4 of5

MEAGPower Decommissioning Funding Plan Nuclear Decommissioning Fund-Vogtle 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 115,223 2019 115,223 5,182 (178) 120,227 2020 120,227 5,407 (185) 125,449 2021 125,449 5,642 (193) 130,898 2022 130,898 5,887 (202) 136,583 2023 136,583 6,143 (210) 142,516 2024 142,516 6,410 (219) 148,706 2025 148,706 6,688 (229) 155,166 2026 155,166 6,979 (239) 161,906 2027 161,906 7,282 (249) 168,939 2028 168,939 7,598 (260) 176,277 2029 176,277 7,928 (271) 183,934 2030 183,934 8,272 (282) 191,925 2031 191,925 8,632 (294) 200,262 2032 200,262 9,007 (307) 208,962 2033 208,962 9,398 (320) 218,039 2034 218,039 9,806 (334) 227,5ll 2035 227,511 10,232 (349) 237,395 2036 237,395 10,677 (366) 247,706 2037 247,706 11,141 (382) 25!!,465 2038 258,465 11,624 (398) 269,691 2039 269,691 12,129 (415) 281,405 2040 2!!1,405 12,656 (439) 293,623 2041 293,623 13,206 (457) 306,371 2042 306,371 13,779 (477) 319,673 2043 319,673 14,377 (497) 333,553 2044 333,553 15,002 (519) 348,036 2045 348,036 15,653 (541) 363,149 2046 363,149 16,333 (564) 378,917 2047 378,917 17,042 (588) 395,371 2048 395,371 17,782 (614) 412,540 2049 412,540 3,092 (110) 415,522 2050 2051 Total 310,986 (10,687)

NRC Minimum Estimate

$249,456,685 Footnotes:

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

Decom Model (NRC Minimum 030619) xlsm Page 5 of5

Vogtle Electric Generating Plant Unit 1 and 2 Financial Assurance Requirements for Decommissioning Nuclear Power Reactors Dalton Utilities Response

Docket Nos.:

50-424 50-425 r

Dalton UTILITIES U.S. Nuclear Regulatory Commission ATTN: Document Control Desk Washington, D.C. 20555 Vogtle Electric Generating Plant Financial Assurance Requirements for Decommissioning Nuclear Power Reactors (10 CFR 50.7S(f){1))

Dear Ladies and Gentlemen:

Pursuant to 10 CFR 50.7S(f)(l), each power reactor licensee is required to report to the NRC the status of its decommissioning fundmg 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, Dalton Utilities {Dalton) hereby submits the enclosed information in accordance with 10 CFR SO. 75(f)(1) for operating licenses NPF-68 and NPF-81 issued for Vogtle Electric Generating Plant Units 1 and 2, respectively. Southern Nuclear Operating Company, as the operating licensee and as an agent for the owners of the Vogtle Electric Generating Plant is providing this information to the NRC on behalf of Dalton.

Based on the information prese11ted herein, there is reasonable assurance that the funding necessary for decommissioning of the Vogtle Electric Generating 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 NPF-68 and NPF-81 Please advise if you have any questions or comments regarding the information provided herein.

Respectfully submitted, il0111 /fu17filftf v

Dalton Utilities, by, Enclosure 1200 v D Parrott. Jr. Parkway PO Box 869 Dalton, GA 30722 706 276.1313

• 706 278 7230 Fax www dutil.com Page 1 of 4

NRC Minimum Decommissioning Funding Requirement for the Vogtle Electric Generating Plant (2018 Dollars)

The following table represents the indexes and calculation used in the March 2019 submittal Table 2 March 2019 Submittal Fonnulas Calculations 1986 NRC Minimum Funding Requirement 10

$105,000,000 CFR 50.75(cl(11(1) 10 CFR 50.7S(c)(2) Adjustment Factor

$10S,OCO,OOOX (.65L+.13E +.228)

Labor Factor (L) 20051ndex (20051ndex X Qtr4 20181ndex)/lOO 1.98 Qtr 4 201Bindex Used (See Enclosure Bl 132.50 Total Labor Escalation (L) 2.624 Enercv Factor (E) 0 SSP +0 42F Industrial Electric Power Factor {PI 19861ndex (09*20181ndex /1.9861ndex) ll4.2 09/2018 Index Used (See Endosure 9) 255.4 Total Industrial Electric Power Esc.lation (PI 2.236 Ught Fuel Oil Factor (F) 19861ndex (09*20181ndex /1.9861ndex) 82.0 09/20181ndex Used (See Enclosure 10) 249.8 Total Ught Fuel Oils Esc;llation lFI 3.046 Energy Escalation Factor (E) 058P +0.42F (0.58 X 2.236) + (0.42 X 3.046) z.sn Total Energy Escalation(£!

1.2969 + 1.2793 Waste Burial Factor (B) (See Enclosure 11)

Generators located In unaffiliated states and U.8S3 those located in compact-affiliated states having no disposal facility NRC Minimum Decommissioning Requirement 10 CFR 50.7S{c)!2l Adjustment F3ctor 5105,000,000 X {.65L +.13E +.228) 10 CFR SU75(c)(2) Adjustment Factor

$105,000,000 X (.65( 2 624) +.13(2.577) +.22{12.853)}

NRC Minimum Decommissioning Requirement

$5 ll, 128,646 Per Unit (2018 Dollars)

City of Dalton% Per Unit (2018 Dollars)

$511,128,646 X 1.6% (Dalton Ownership %1

$8,178,058 Page 2 of4

I 1

2 3

4 5

6 7

NOTES:

Vogtle Electric Generating Plant Dalton Utilities Ownership Percentage-1.6%

Unit 1 10 CFR 50.75(f}(l) Requirement The NRC minimum decommissioning estimate,

$8,178,000 z pursuant to 10 CFR 50 75(b) and (c) 1 The amount accumulated at the end of the calendar year preceding the date or the report

$10,776,895 for items included in 10 CFR 50.75(b) and (c)

A schedule of the annual amount~ remaining to See Schedule m be collected; for 1tems in 10 CFR 50 75(b) and (c).

The assumptions used regardmg:

(e) rates of escalation in decommissioning 2.70%

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

funds; (g) real rate of return; and

(.68%)

(h) rates of other factors used in funding projections.

N/A Any contracts upon which the licensee is relying None pursuant to 10 CFR 50.75(e)(l)(v).

Any modifications to a licensee's current method None of providing financial assurance occurring since the last submitted report.

Any material changes to trust agreements.

None Unit 2

$8,178,000 I

$10,325,617 See Schedule in 2.70%

2.02%

(. 68%)

N/A None None None 1 The NRC formulas in section 10 CFR 50.75(c) lnclude only those decommissioning costs incurred by licensees to remove a facility or site safely from service and reduce residual radioactivity to levels that permit* (l) 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.

1 This amount is based on NUREG-1307, Rev.l7, for the burial factor, the December 2018 BlS data for labor and the September 2018 8l5 data for energy.

Page 3 of 4

Plant Hatch Unit 1

"'0 Dl cc Unit2 (1)

.j>. a

.j>.

Total Plant Vogtle Unit 1 Unit 2 Total Grand Total The Water, Light and Sinking Fund Commission of The City of Dalton, GA Bank of New York Mellon Carrying ValuE Market Value Par Value 12,733,250 12,540,218 12,733,250 12,490,008 12,636,636 13,073,000 25,223,258 25,176,854 25,806,250 6,875,823 6,799,318 6,876,000 6,588,000 6,514,599 6,588,000 13,463,823 13,313,917 13,464,000 38,687,081 38,490,771 39,270,250 D/B/A Dalton Utilities Nuclear Decommissioning Funds Investment Balances December 31, 2018 Bank of New York Mellon Carrvina Value Market Value Par Value 7,606,887 7,335,984 7,493,923 7,461,573 7,392,389 7,693,877 15,068,460 14,728,373 15,187,800 4,107,640 3,977,577 4,046,745 3,935,694 3,811,018 3,877,248 8,043,334 7,788,595 7,923,993 23,111,794 22,516,968 23,111,793 Dalton Balance end of license Unit 1 $19,247,215 Unit2

$19,193,797 Total Funds Carrvina Value Market Value 20,340,137 19.876,202 19,951,581 20,029,025 40,291,718 39,905,227 10,983,463 10,776,895 10,523,694 10,325,617 21,507,157 21,102,512 NRC Minimum

$17,708,834

$18,678,021 Par Value 20,227,173 20,766,877 40,994,050 10,922,745 10,465,248 21,387,993 61,798,875 61,007,739 62,382,043 2018 Nuclear Decomm Funds-NRC Filing