NL-21-0307, Report on Status of Decommissioning Funding

Report on Status of Decommissioning Funding

ML21090A294
Person / Time
Site:	Hatch, Vogtle, Farley
Issue date:	03/31/2021
From:	Gayheart C Southern Nuclear Operating Co
To:	Document Control Desk, Office of Nuclear Reactor Regulation
References
NL-21-0307
Download: ML21090A294 (14)

Text

Regulatory Affairs 3535 Colonnade Parkway Birmingham, AL 35243 205 992 5000 tel 205 992 7601 fax March 31, 2021 Docket Nos.: 50-348 50-321 50-424 NL-21-0307 50-364 50-366 50-425 U. S. Nuclear Regulatory Commission ATTN: Document Control Desk Washington, D. C. 20555-0001 Joseph M. Farley Nuclear Plant Units 1 and 2 Edwin I. Hatch Nuclear Plant Units 1 and 2 Vogtle Electric Generating Plant Units 1 and 2 Report on Status of Decommissioning Funding Ladies and Gentlemen:

Pursuant to 10 CFR 50.75(f)(1), Southern Nuclear Operating Company (SNC) submits this report on the status of decommissioning funding for the operating plants listed above.

In accordance with 10 CFR 50.75(e)(1)(ii), owners of the SNC operating plants provide financial assurance by establishing external sinking funds in the form of trusts in which the total amount of funds will be sufficient to pay decommissioning costs at the time permanent termination of operations is expected. Since the last biennial report, the SNC plant owners have made no changes to their methods of providing financial assurance and no material changes to their trust agreements. The NRC minimum decommissioning estimates in the enclosed reports are based on cost factors for waste burial in NUREG-1307 Rev. 18, for labor in December 2020 BLS data, and for energy in September 2020 BLS data.

As substantiated by the enclosed reports, SNC certifies that the bulk of funds necessary for the safe decommissioning of the referenced reactors are being set aside and will be sufficient to pay decommissioning costs at the time permanent termination of operations is expected.

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

Respectfully submitted, Cheryl A. Gayheart Regulatory Affairs Director CAG/efb/cbg

SNC Report on Status of Decommissioning Funding NL-21-0307 Page 2

Enclosures:

1. Farley Decommissioning Financial Assurance Report

2. Hatch Decommissioning Financial Assurance Report

3. Vogtle 1 and 2 Decommissioning Financial Assurance Report cc: Regional Administrator - Region ll NRR Project Manager - Farley, Hatch, and Vogtle 1 & 2 Senior Resident Inspector - Farley, Hatch, and Vogtle 1 & 2 SNC Record RType: PP1.001

Joseph M. Farley Nuclear Plant Units 1 and 2 Edwin I. Hatch Nuclear Plant Units 1 and 2 Vogtle Electric Generating Plant Units 1 and 2 Report on Status of Decommissioning Funding Enclosure 1 Farley Decommissioning Financial Assurance Report

NL-21-0307 Enclosure 1 Farley Decommissioning Financial Assurance Report Alabama Power Company Ownership Percentage - 100%

10 CFR 50.75(f)(1) Requirements Unit 1 Unit 2 The NRC minimum decommissioning $487,820,000 $487,820,000 estimate per 10 CFR 50.75(c)

The amount of trust funds accumulated as $586,818,442 $568,954,712 of December 31, 2020 The amounts scheduled to be collected $464,149 $402,004 annually over the remaining life of the plant from years 2021 to 2037 (Unit 1) and to 2041 (Unit 2)

The amount of trust funds projected to be $1,305,215,000 $1,524,392,000 accumulated at license termination assuming a 2% real rate of return*

• Alabama Public Service Commission Order in Docket U-3295 has established a higher 2.5% real rate of return.

E1-1

Joseph M. Farley Nuclear Plant Units 1 and 2 Edwin I. Hatch Nuclear Plant Units 1 and 2 Vogtle Electric Generating Plant Units 1 and 2 Report on Status of Decommissioning Funding Enclosure 2 Hatch Decommissioning Financial Assurance Report

NL-21-0307 Enclosure 2 Hatch Decommissioning Financial Assurance Report Georgia Power Company Ownership Percentage - 50.1%

10 CFR 50.75(f)(1) Requirements Unit 1 Unit 2 The NRC minimum decommissioning $316,960,000 $316,960,000 estimate per 10 CFR 50.75(c)

The amount of trust funds accumulated as $351,993,261 $324,545,573 of December 31, 2020 The amounts scheduled to be collected None None annually over the remaining life of the plant from years 2021 to 2034 (Unit 1) and to 2038 (Unit 2)

The amount of trust funds projected to be $693,677,000 $776,385,000 accumulated at license termination assuming a 2% real rate of return E2-1

NL-21-0307 Enclosure 2 Hatch Decommissioning Financial Assurance Report Oglethorpe Power Corporation Ownership Percentage - 30%

10 CFR 50.75(f)(1) Requirements Unit 1 Unit 2 The NRC minimum decommissioning $189,800,000 $189,800,000 estimate per 10 CFR 50.75(c)

The amount of trust funds accumulated as $206,860,256 $162,628,801 of December 31, 2020 The amounts scheduled to be collected None None annually over the remaining life of the plant from years 2021 to 2034 (Unit 1) and to 2038 (Unit 2)

The amount of trust funds projected to be $407,662,000 $389,044,000 accumulated at license termination assuming a 2% real rate of return*

• The Oglethorpe Board of Directors has rate making authority and has established a budget assuming a 5.0%

growth rate. Therefore, the amount of trust funds projected to be accumulated at license termination is understated because a 2% real rate of return is assumed.

E2-2

NL-21-0307 Enclosure 2 Hatch Decommissioning Financial Assurance Report Municipal Electric Authority of Georgia Ownership Percentage - 17.7%

10 CFR 50.75(f)(1) Requirements Unit 1 Unit 2 The NRC minimum decommissioning $111,980,000 $111,980,000 estimate per 10 CFR 50.75(c)

The amount of trust funds accumulated as $150,086,416 $149,621,090 of December 31, 2020 The amounts scheduled to be collected None None annually over the remaining life of the plant from years 2021 to 2034 (Unit 1) and to 2038 (Unit 2)

The amount of trust funds projected to be $295,777,000 $357,927,000 accumulated at license termination assuming a 2% real rate of return E2-3

NL-21-0307 Enclosure 2 Hatch Decommissioning Financial Assurance Report Dalton Utilities Ownership Percentage - 2.2%

10 CFR 50.75(f)(1) Requirements Unit 1 Unit 2 The NRC minimum decommissioning $13,920,000 $13,920,000 estimate per 10 CFR 50.75(c)

The amount of trust funds accumulated as $19,702,379 $19,327,957 of December 31, 2020 The amounts scheduled to be collected None None annually over the remaining life of the plant from years 2021 to 2034 (Unit 1) and to 2038 (Unit 2)

The amount of trust funds projected to be $27,839,000 $30,145,000 accumulated at license termination assuming a 0% real rate of return E2-4

Joseph M. Farley Nuclear Plant Units 1 and 2 Edwin I. Hatch Nuclear Plant Units 1 and 2 Vogtle Electric Generating Plant Units 1 and 2 Report on Status of Decommissioning Funding Enclosure 3 Vogtle Units 1 and 2 Decommissioning Financial Assurance Report

NL-21-0307 Enclosure 3 Vogtle 1-2 Decommissioning Financial Assurance Report Georgia Power Company Ownership Percentage - 45.7%

10 CFR 50.75(f)(1) Requirements Unit 1 Unit 2 The NRC minimum decommissioning $234,500,000 $234,500,000 estimate per 10 CFR 50.75(c)

The amount of trust funds accumulated as $176,447,786 $195,186,283 of December 31, 2020 The amounts scheduled to be collected None None annually over the remaining life of the plant from years 2021 to 2047 (Unit 1) and to 2049 (Unit 2)

The amount of trust funds projected to be $634,961,000 $772,280,000 accumulated at license termination assuming a 2% real rate of return E3-1

NL-21-0307 Enclosure 3 Vogtle 1-2 Decommissioning Financial Assurance Report Oglethorpe Power Corporation Ownership Percentage - 30%

10 CFR 50.75(f)(1) Requirements Unit 1 Unit 2 The NRC minimum decommissioning $153,940,000 $153,940,000 estimate per 10 CFR 50.75(c)

The amount of trust funds accumulated as $120,681,285 $109,316,727 of December 31, 2020 The amounts scheduled to be collected None None annually over the remaining life of the plant from years 2021 to 2047 (Unit 1) and to 2049 (Unit 2)

The amount of trust funds projected to be $434,281,000 $432,526,000 accumulated at license termination assuming a 2% real rate of return*

• The Oglethorpe Board of Directors has rate making authority and has established a budget assuming a 5.0% growth rate. Therefore, the amount of trust funds projected to be accumulated at license termination is understated because a 2% real rate of return is assumed.

E3-2

NL-21-0307 Enclosure 3 Vogtle 1-2 Decommissioning Financial Assurance Report Municipal Electric Authority of Georgia Ownership Percentage - 22.7%

10 CFR 50.75(f)(1) Requirements Unit 1 Unit 2 The NRC minimum decommissioning $116,480,000 $116,480,000 estimate per 10 CFR 50.75(c)

The amount of trust funds accumulated as $150,080,191 $144,452,579 of December 31, 2020 The amounts scheduled to be collected None None annually over the remaining life of the plant from years 2021 to 2047 (Unit 1) and to 2049 (Unit 2)

The amount of trust funds projected to be $540,075,000 $571,545,000 accumulated at license termination assuming a 2% real rate of return E3-3

NL-21-0307 Enclosure 3 Vogtle 1-2 Decommissioning Financial Assurance Report Dalton Utilities Ownership Percentage - 1.6%

10 CFR 50.75(f)(1) Requirements Unit 1 Unit 2 The NRC minimum decommissioning $8,210,000 $8,210,000 estimate per 10 CFR 50.75(c)

The amount of trust funds accumulated as $10,645,399 $9,996,532 of December 31, 2020 The amounts scheduled to be collected None None annually over the remaining life of the plant from years 2021 to 2047 (Unit 1) and to 2049 (Unit 2)

The amount of trust funds projected to be $20,735,000 $20,457,000 accumulated at license termination assuming a 0% real rate of return E3-4