NL-25-0069, Report on Status of Decommissioning Funding
| ML25090A311 | |
| Person / Time | |
|---|---|
| Site: | Hatch, Vogtle, Farley  |
| Issue date: | 03/31/2025 |
| From: | Coleman J Southern Nuclear Operating Co |
| To: | Office of Nuclear Reactor Regulation, Document Control Desk |
| References | |
| NL-25-0069 | |
| Download: ML25090A311 (1) | |
Text
>. Southern Nuclear March 31, 2025 Docket Nos.: 50-348 50-321 50-424 52-025 50-364 50-366 50-425 52-026 U. S. Nuclear Regulatory Commission ATTN: Document Control Desk Washington, D. C. 20555-0001 Regulatory Affairs Joseph M. Farley Nuclear Plant Units 1 and 2 Ladies and Gentlemen:
Edwin I. Hatch Nuclear Plant Units 1 and 2 Vogtle Electric Generating Plant Units 1 and 2 Vogtle Electric Generating Plant Units 3 and 4 Report on Status of Decommissioning Funding 3535 Colonnade Parkway Birmingham, AL 35243 205 992 5000 tel 205 992 7601 fax NL-25-0069 Pursuant to 10 CFR 50.75(f)(1), Southern Nuclear Operating Company (SNC), on behalf of itself and Alabama Power Company, owner of Joseph M. Farley Nuclear Plant (Farley), and Georgia Power Company (GPC), Oglethorpe Power Corporation (OPC), Municipal Electric Authority of Georgia (MEAG) and the City of Dalton ("Dalton Utilities"), co-owners of Edwin I. Hatch Nuclear Plant (Hatch) and Vogtle Electric Generating Plant (Vogtle), submits this report on the status of decommissioning funding.
In accordance with 10 CFR 50.75(e)(1)(ii), owners of the SNC nuclear 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.
As substantiated by the enclosed reports, SNC certifies that the funds necessary for the safe decommissioning of the referenced reactors are being set aside in an amount that 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 Ryan Joyce at 205.992.6468.
Respectfully submitted,
~~
Jamie Coleman Regulatory Affairs Director efb/btr/cmg
SNC Report on Status of Decommissioning Funding NL-25-0069 Page 2
Enclosures:
- 1. Farley Decommissioning Financial Assurance Report
- 2. Hatch Decommissioning Financial Assurance Report
- 3. Vogtle 1 and 2 Decommissioning Financial Assurance Report
- 4. Vogtle 3 and 4 Decommissioning Financial Assurance Report cc:
Regional Administrator - Region II NRR Project Manager - Farley, Hatch, Vogtle 1 & 2, Vogtle 3 & 4 Senior Resident Inspector - Farley, Hatch, Vogtle 1 & 2, Vogtle 3-4 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 Vogtle Electric Generating Plant Units 3 and 4 Report on Status of Decommissioning Funding Farley Decommissioning Financial Assurance Report
NL-25-0069 Enclosure 1 Farley Decommissioning Financial Assurance Report Alabama Power Company Ownership Percentage - 100%
10 CFR 50.75(f)(1) Requirements Unit 1 The NRC minimum decommissioning
$523,630,000 estimate per 10 CFR 50.75(c)
The amount of trust funds accumulated as
$697,739,545 of December 31, 2024 The amounts scheduled to be collected
$464,149 annually over the remainina life of the plant The amount of trust funds projected to be
$1,634,000,000 accumulated by license termination The amount of trust funds projected to be
$908,000,000 needed to meet the NRC minimum Surplus funds available at license
$726,000,000 termination for other decommissioning-related expenses Unit 2
$523,630,000
$686,947,546
$402,004
$2,074,000,000
$1,071,000,000
$1,003,000,000
- The NRC minimum decommissioning estimate is based on NUREG-1307, Rev. 20, for the burial factor, the 4th quarter 2024 BLS ECI South Region index for labor, and the Sept. 2024 indices for energy. The Alabama Public Service Commission Order in Docket U-3295 has established a 2.5% real rate of return with a cost escalation of 4.5%
and earnings growth of 7%. Unit 1 has approximately 12.5 years remaining until its current license expires, and Unit 2 has approximately 16.25 years remaining. No material changes have been made to the trust agreements or methods of providing assurance.
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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 Hatch Decommissioning Financial Assurance Report
NL-25-0069 Enclosure 2 Hatch Decommissioning Financial Assurance Report Georgia Power Company Ownership Percentage - 50.1 %
10 CFR 50.75(f)(1) Requirements Unit 1 The NRC minimum decommissioning
$329,165,000 estimate per 10 CFR 50.75(c)
The amount of trust funds accumulated as
$357,305,000 of December 31, 2024 The amounts scheduled to be collected None annually over the remainina life of the plant.
The amount of trust funds projected to be
$558,720,000 accumulated by license termination The amount of trust funds projected to be
$442,558,000 needed to meet the NRC minimum Surplus funds available at license
$116,162,000 termination for other decommissioning-related expenses Unit 2
$329,165,000
$328,011,000 None
$616,013,000
$492,096,000
$123,917,000
- The NRC minimum decommissioning estimate is based on NUREG-1307, Rev. 20, for the burial factor, the 4th quarter 2024 BLS ECI South Region index for labor, and the Sept. 2024 indices for energy. Based on site-specific decommissioning cost studies, Georgia Power assumes a cost escalation of 2.78% for Hatch Unit 1 and 2.75% for Hatch Unit 2. Based on a 2% real rate of return, Georgia Power assumes an earnings growth of 4.78% and 4.75%
for Hatch Unit 1 and Unit 2, respectively. Hatch Unit 1 has approximately 10 years remaining until its current license expires, and Unit 2 has approximately 14 years remaining. Georgia Power may adjust the annual contribution schedule from year-to-year depending on the annual NRC minimum formula amount and the growth of the fund. In the trust funds balances, collections, and projections, Georgia Power is providing additional funds for the decommissioning of the independent spent fuel storage installation. No material changes have been made to the trust agreements or methods of providing assurance.
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NL-25-0069 Enclosure 2 Hatch Decommissioning Financial Assurance Report Oglethorpe Power Corporation Ownership Percentage - 30%
10 CFR 50.75(f)(1) Requirements Unit 1 The NRC minimum decommissioning
$197,105,000 estimate per 10 CFR 50.75(c)
The amount of trust funds accumulated as
$243, 178,354 of December 31, 2024 The amounts scheduled to be collected None annually over the remainina life of the plant The amount of trust funds projected to be
$382,482,606 accumulated by license termination The amount of trust funds projected to be
$255,604, 137 needed to meet the NRC minimum Surplus funds available at license
$126,878,469 termination for other decommissioning-related expenses Unit 2
$197,105,000
$191,181,259 None
$359,599,324
$282,949,405
$76,649,919
- The NRC minimum decommissioning estimate is based on NUREG-1307, Rev. 20, for the burial factor, the 4th quarter 2022 BLS ECI South Region index for labor, and the Sept. 2022 indices for energy. Oglethorpe assumes a cost escalation of 2.633% for Hatch Unit 1 and 2.616% for Hatch Unit 2. Based on a 2% real rate of return, Oglethorpe assumes an earnings growth of 4.633% and 4.616% for Hatch Unit 1 and Unit 2, respectively. Hatch Unit 1 has approximately 10 years remaining until its current license expires, and Unit 2 has approximately 14 years remaining. Oglethorpe Power may adjust the annual contribution schedule from year-to-year depending on the annual NRC minimum formula amount and the growth of the fund. No material changes have been made to the trust agreements or methods of providing assurance.
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NL-25-0069 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 The NRC minimum decommissioning
$116,295,000 estimate per 10 CFR 50.75(c)
The amount of trust funds accumulated as
$174,347,267 of December 31, 2024 The amounts scheduled to be collected None annually over the remaining life of the plant The amount of trust funds projected to be
$246,037,000 accumulated by license termination The amount of trust funds projected to be
$148,870,000 needed to meet the NRC minimum Surplus funds available at license
$97,167,000 termination for other decommissioning-related expenses Unit 2
$116,295,000
$172,178,777 None
$276,096,000
$164,325,000
$111,771,000
- The NRC minimum decommissioning estimate is based on NUREG-1307, Rev. 20, for the burial factor, the 4th quarter 2022 BLS ECI South Region index for labor, and the Sept. 2022 indices for energy. MEAG assumes a cost escalation of 2.5% and a rate of earnings of 4.5% resulting in a real rate of return of 2%. MEAG also subtracts investment fees from the amount of funds projected to be accumulated at license termination. Hatch Unit 1 has approximately 10 years remaining until its current license expires, and Unit 2 has approximately 14 years remaining.
MEAG may adjust the annual contribution schedule from year-to-year depending on the annual NRC minimum formula amount and the growth of the fund. No material changes have been made to the trust agreements or methods of providing assurance.
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NL-25-0069 Enclosure 2 Hatch Decommissioning Financial Assurance Report Dalton Utilities Ownership Percentage - 2.2%
10 CFR 50. 75(f)( 1) Requirements Unit 1 The NRC minimum decommissioning
$14,455,000 estimate per 10 CFR 50.75(c)
The amount of trust funds accumulated as
$13,742,144 of December 31, 2024 The amounts scheduled to be collected None annually over the remaining life of the plant The amount of trust funds projected to be
$22,384,000 accumulated by license termination The amount of trust funds projected to be
$19,427,000 needed to meet the NRC minimum Surplus funds available at license
$2,957,000 termination for other decommissioning-related expenses Unit 2
$14,455,000
$14,286,936 None
$28,287,000
$21,865,000
$6,422,000
- The NRC minimum decommissioning estimate is based on NUREG-1307, Rev. 20, for the burial factor, the 4th quarter 2024 BLS ECI South Region index for labor, and the Sept. 2024 indices for energy. Dalton assumes a cost escalation of 3.0% and a rate of earnings of 5.00% resulting in a real rate of return of 2.00%. Hatch Unit 1 has approximately 10 years remaining until its current license expires, and Unit 2 has approximately 14 years remaining.
Dalton Utilities may adjust the annual contribution schedule from year-to-year depending on the annual NRC minimum formula amount and the growth of the fund. No material changes have been made to the trust agreements or methods of providing assurance.
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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 Vogtle Units 1 and 2 Decommissioning Financial Assurance Report
NL-25-0069 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 The NRC minimum decommissioning
$251,705,000 estimate per 1 O CFR 50.75(c)
The amount of trust funds accumulated as
$178,851,000 ofDecember31,2024 The amounts scheduled to be collected None annually over the remaining life of the plant The amount of trust funds projected to be
$501,250,000 accumulated by license termination The amount of trust funds projected to be
$472,560,000 needed to meet the NRC minimum Surplus funds available at license
$28,690,000 termination for other decommissioning-related expenses Unit 2
$251,705,000
$217,797,000 None
$669,188,000
$498,199,000
$170,989,000
- The NRC minimum decommissioning estimate is based on NUREG-1307, Rev. 20, for the burial factor, the 4th quarter 2024 BLS ECI South Region index for labor, and the Sept. 2024 indices for energy. Based on site-specific decommissioning cost studies, Georgia Power assumes a cost escalation of 2.68% for Vogtle Unit 1 and Unit 2. Based on a 2% real rate of return, Georgia Power assumes an earnings growth of 4.68%. Vogtle Unit 1 has approximately 22 years remaining until its current license expires, and Unit 2 has approximately 24 years remaining. Georgia Power may adjust the annual contribution schedule from year-to-year depending on the annual NRC minimum formula amount and the growth of the fund. In the trust funds balances, collections, and projections, Georgia Power is providing additional funds for the decommissioning of the independent spent fuel storage installation. No material changes have been made to the trust agreements or methods of providing assurance.
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NL-25-0069 Enclosure 3 Vogtle 1-2 Decommissioning Financial Assurance Report Oglethorpe Power Corporation Ownership Percentage - 30%
10 CFR 50. 75(f)(1) Requirements Unit 1 The NRC minimum decommissioning
$165,235,000 estimate per 1 O CFR 50.75(c)
The amount of trust funds accumulated as
$141,869,090 ofDecember31,2024 The amounts scheduled to be collected None annually over the remaining life of the plant The amount of trust funds projected to be
$396,420,171 accumulated by license termination The amount of trust funds projected to be
$296,123,474 needed to meet the NRC minimum Surplus funds available at license
$100,296,697 termination for other decommissioning-related expenses Unit 2
$165,235,000
$128,509,276 None 391,621,171
$310,699,547
$80,921,624
- The NRC minimum decommissioning estimate is based on NUREG-1307, Rev. 20, for the burial factor, the 4th quarter 2022 BLS ECI South Region index for labor, and the Sept. 2022 indices for energy. Based on site-specific decommissioning cost studies, Oglethorpe Power assumes a cost escalation of 2.569% for Vogtle Unit 1 and 2.558%
for Vogtle Unit 2. Based on a 2% real rate of return, Oglethorpe Power assumes an earnings growth of 4.569% and 4.558% for Unit 1 and 2 respectively. Vogtle Unit 1 has approximately 22 years remaining until its current license expires, and Unit 2 has approximately 24 years remaining. Oglethorpe Power may adjust the annual contribution schedule from year-to-year depending on the annual NRC minimum formula amount and the growth of the fund. No material changes have been made to the trust agreements or methods of providing assurance.
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NL-25-0069 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 The NRC minimum decommissioning
$125,030,000 estimate per 1 O CFR 50.75(c)
The amount of trust funds accumulated as
$172,333,842 of December 31, 2025 The amounts scheduled to be collected None annually over the remaining life of the plant The amount of trust funds projected to be
$401,496,000 accumulated by license termination The amount of trust funds projected to be
$215,250,000 needed to meet the NRC minimum Surplus funds available at license
$186,246,000 termination for other decommissioning-related expenses Unit 2
$125,030,000
$164,851,331 None
$444,573,000
$226, 150,000
$218,423,000
- The NRC minimum decommissioning estimate is based on NUREG-1307, Rev. 20, for the burial factor, the 4th quarter 2024 BLS ECI South Region index for labor, and the Sept. 2024 indices for energy. MEAG assumes a cost escalation of 2.5% and a rate of earnings of 4.5% resulting in a real rate of return of 2%. MEAG also subtracts investment fees from the amount of funds projected to be accumulated at license termination. Vogtle Unit 1 has approximately 22 years remaining until its current license expires, and Unit 2 has approximately 24 years remaining. MEAG may adjust the annual contribution schedule from year-to-year depending on the annual NRC minimum formula amount and the growth of the fund. No material changes have been made to the trust agreements or methods of providing assurance.
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NL-25-0069 Enclosure 3 Vogtle 1-2 Decommissioning Financial Assurance Report Dalton Utilities Ownership Percentage - 1.6%
10 CFR 50. 75(f)(1) Requirements Unit 1 The NRC minimum decommissioning
$8,815,000 estimate per 1 O CFR 50.75(c)
The amount of trust funds accumulated as
$8,197,730 ofDecember31,2024 The amounts scheduled to be collected None annually over the remaining life of the plant The amount of trust funds projected to be
$23,980,000 accumulated by license termination The amount of trust funds projected to be
$16,891,000 needed to meet the NRC minimum Surplus funds available at license
$7,089,000 termination for other decommissioning-related expenses Unit 2
$8,815,000
$6,954,105 None
$22,427,000
$17,920,000
$4,507,000
- The NRC minimum decommissioning estimate is based on NUREG-1307, Rev. 20, for the burial factor, the 4th quarter 2024 BLS ECI South Region index for labor, and the Sept. 2024 indices for energy. Dalton assumes a cost escalation of 3.0% and a rate of earnings of 5.00% resulting in a real rate of return of 2.00%. Vogtle Unit 1 has approximately 22 years remaining until its current license expires, and Unit 2 has approximately 24 years remaining. Dalton Utilities may adjust the annual contribution schedule from year-to-year depending on the annual NRC minimum formula amount and the growth of the fund. No material changes have been made to the trust agreements or methods of providing assurance.
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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 Vogtle Units 3 and 4 Decommissioning Financial Assurance Report
NL-25-0069 Enclosure 4 Vogtle 3-4 Decommissioning Financial Assurance Report Georgia Power Company Ownership Percentage - 45. 7%
10 CFR 50.75(f)(1) Requirements Unit 3 The NRC minimum decommissioning
$251,705,000 estimate per 1 O CFR 50.75(c)
The amount of trust funds accumulated as
$22,379,000 ofDecember31,2024 The amounts scheduled to be collected
$6,939,000 (2025) annually over the remainino life of the plant
$5,809,000 (2026-62)
The amount of trust funds projected to be
$683,220,000 accumulated by license termination The amount of trust funds projected to be
$680,597,000 needed to meet the NRC minimum Surplus funds available at license
$2,623,000 termination for other decommissioning-related expenses Unit 4
$251,705,000
$14,804,000
$7,144,000 (2025)
$6,050,000 (2026-63)
$703,462,000
$700,759,000
$2,703,000
- The NRC minimum decommissioning estimate is based on NUREG-1307, Rev. 20, for the burial factor, the 4th quarter 2024 BLS ECI South Region index for labor, and the Sept. 2024 indices for energy. Georgia Power assumes a cost escalation of 2.61 % for Unit 3 and 2.62% for Unit 4. Based on a 2% real rate of return, Georgia Power assumes an earnings growth of 4.61 % for Unit 3 and 4.62% for Unit 4. Vogtle Unit 3 has approximately 38 years remaining until its current license expires, and Unit 4 has approximately 39 years remaining. Georgia Power may adjust the annual contribution schedule from year-to-year depending on the annual NRC minimum formula amount and the growth of the fund. In the trust funds balances, collections, and projections, Georgia Power is providing additional funds for the decommissioning of an eventual independent spent fuel storage installation. No material changes have been made to the trust agreements or methods of providing assurance.
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NL-25-0069 Enclosure 4 Vogtle 3-4 Decommissioning Financial Assurance Report Oglethorpe Power Corporation Ownership Percentage - 30%
10 CFR 50. 75(f)(1) Requirements Unit 3 The NRC minimum decommissioning
$165,235,000 estimate per 1 O CFR 50.75(c)
The amount of trust funds accumulated as
$10,524,309 ofDecember31,2024 The amounts scheduled to be collected
$4,657,722 annually over the remaining life of the plant The amount of trust funds projected to be
$503,601,158 accumulated by license termination The amount of trust funds projected to be
$424,485,510 needed to meet the NRC minimum Surplus funds available at license
$79,115,648 termination for other decommissioning-related expenses Unit 4
$165,235,000
$6,463,811
$4,885,610
$530,946,502
$434,495,369
$96,451,133
- The NRC minimum decommissioning estimate is based on NUREG-1307, Rev. 20, for the burial factor, the 4th quarter 2024 BLS ECI South Region index for labor, and the Sept. 2024 indices for energy. Based on site-specific decommissioning cost studies, Oglethorpe Power assumes a cost escalation of 2.514% for Vogtle Unit 3 and 2.510%
for Vogtle Unit 4. Based on a 2% real rate of return, Oglethorpe Power assumes an earnings growth of 4.514% and 4.510% for Unit 3 and 4 respectively. The current Vogtle Unit 3 license expires on August 3, 2062, and the Unit 4 license expires on July 28, 2063. Annual contributions are scheduled to be prorated in the last year. Oglethorpe Power may adjust the annual contribution schedule from year-to-year depending on the annual NRC minimum formula amount and the growth of the fund. No material changes have been made to the trust agreements or methods of providing assurance.
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NL-25-0069 Enclosure 4 Vogtle 3-4 Decommissioning Financial Assurance Report Municipal Electric Authority of Georgia Ownership Percentage - 22.7%
10 CFR 50. 75(f)(1) Requirements Unit 3 The NRC minimum decommissioning
$125,030,000 estimate per 1 O CFR 50.75(c)
The amount of trust funds accumulated as
$4,838,992 ofDecember31,2024 The average amounts scheduled to be
$5,570,845 collected annually over the remaining life of the plant The amount of trust funds projected to be
$474,806,000 accumulated by license termination The amount of trust funds projected to be
$319,537,000 needed to meet the NRC minimum Surplus funds available at license
$155,269,000 termination for other decommissioning-related expenses Unit 4
$125,030,000
$2,416,118
$6,015,884
$523,298,000
$327,530,000
$195,768,000
- The NRC minimum decommissioning estimate is based on NUREG-1307, Rev. 20, for the burial factor, the 4th quarter 2022 BLS ECI South Region index for labor, and the Sept. 2022 indices for energy. MEAG assumes a cost escalation of 2.5% and a rate of earnings of 4.5%. MEAG also subtracts investment fees from the amount of funds projected to be accumulated at license termination. Vogtle Unit 3 has approximately 38 years remaining until its current license expires, and Unit 4 has approximately 39 years remaining. Georgia Power may adjust the annual contribution schedule from year-to-year depending on the annual NRC minimum formula amount and the growth of the fund. No material changes have been made to the trust agreements or methods of providing assurance.
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NL-25-0069 Enclosure 4 Vogtle 3-4 Decommissioning Financial Assurance Report Dalton Utilities Ownership Percentage - 1.6%
10 CFR 50. 75(f)(1) Requirements Unit 3 The NRC minimum decommissioning
$8,815,000 estimate per 1 O CFR 50.75(c)
The amount of trust funds accumulated as
$823,491 ofDecember31,2024 The amounts scheduled to be collected
$300,000 annually over the remaining life of the plant The amount of trust funds projected to be
$35,495,000 accumulated by license termination The amount of trust funds projected to be
$23,466,000 needed to meet the NRC minimum Surplus funds available at license
$12,029,000 termination for other decommissioning-related expenses Unit 4
$8,815,000
$617,891
$300,000
$36,345,000
$24,170,000
$12,175,000
- The NRC minimum decommissioning estimate is based on NUREG-1307, Rev. 20, for the burial factor, the 4th quarter 2022 BLS ECI South Region index for labor, and the Sept. 2022 indices for energy. Dalton Utilities assumes a cost escalation of 2.61 % for Unit 3 and 2.62% for Unit 4. Based on a 2% real rate of return, Dalton Utilities assumes an earnings growth of 4.61 % for Unit 3 and 4.62% for Unit 4. Vogtle Unit 3 has approximately 38 years remaining until its current license expires, and Unit 4 has approximately 39 years remaining. Dalton Utilities may adjust the annual contribution schedule from year-to-year depending on the annual NRC minimum formula amount and the growth of the fund. No material changes have been made to the trust agreements or methods of providing assurance.
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