NLS2003039, Third Biennial Report on Financial Assurance for Decommissioning Funding

Third Biennial Report on Financial Assurance for Decommissioning Funding

ML030920479
Person / Time
Site:	Cooper
Issue date:	03/24/2003
From:	Warren C Nebraska Public Power District (NPPD)
To:	Document Control Desk, Office of Nuclear Reactor Regulation
References
NLS2003039
Download: ML030920479 (6)

Text

N Nebraska Public Power District Always there when you need us NLS2003039 March 24, 2003 U.S. Nuclear Regulatory Commission Attention: Document Control Desk Washington, D.C. 20555-0001

Subject:

Decommissioning Funding Cooper Nuclear Station, NRC Docket No. 50-298, DPR-46 The purpose of this letter is to provide the Nebraska Public Powver District's Third Biennial Report on Financial Assurance for Decommissioning for Cooper Nuclear Station in accordance with 10 CFR 50.75(f)(1), Reporting and Record Keeping for Decommissioning Planning. The report contains the amount of decommissioning funds estimated to be required pursuant to 10 CFR 50.75(b) and (c), the amount accumulated to the end of the calendar year preceding the date of the report, a schedule of the annual amounts remaining to be collected, the assumptions used regarding rates of escalation in decommissioning costs, and the rate of earnings on decommissioning funds.

Should you have any questions concerning this matter, please contact me.

l .Warren Vice President-Nuclear and Chief Nuclear Officer

/nr Attachment COOPER NUCLEAR STATION PO Box 98 /Brownville, NE 68321-0098 Telephone: (402) 825-3811 / Fax: (402) 825-5211 DO wvww nppd com

NLS2003039 Page 2 cc: Regional Administrator w/attachment USNRC - Region IV Senior Project Manager w/attachment USNRC - NRR Project Directorate IV-1 Senior Resident Inspector Nv/attachment USNRC NPG Distribution w/o attachment Records w/attachment

NLS2003039 Attachment Page I of 3 NEBRASKA PUBLIC POWER DISTRICT Third Biennial Report on Financial Assurance for Decommissioning In Accordance with 10 CFR 50.75(f)( 1)

Date: March 17, 2003 Station: Cooper Nuclear Station Owner/Licensee Making The Report: Nebraska Public Power District Nebraska Public Power District (NPPD) is a public corporation and political subdivision of the state of Nebraska. NPPD has the power and is required to fix, establish and collect adequate rates and other charges for electrical energy and any and all commodities or services sold or furnished by it.

NPPD is accordingly authorized to establish its own rates and other charges through which it can recover its cost of service. NPPD is governed by an Il-member Board of Directors who are popularly elected from the NPPD's chartered territory. The Board of Directors is the rate making authority for the NPPD.

Percentage Ownership: 100 10 CFR 50.75 (b) & (c) Decommissioning Estimate (2002 Dollars): $413,820,000 Decommissioning Fund' Total as of 12/31/2002: $312,832,994 Schedule of Future Annual Funding Contributions 2:

Funding NRC Beginning Funding Requirement Fund Ending Minimum Year Balance Contribution In 2014 Interest Balance Escalated 2003 $312,832,994 $328,825 $21,127,325 $334,289,144 $413,820,000 2004 334,289,144 0 22,564,517 356,853,661 430,372,800 2005 356,853,661 0 24,087,622 380,941,283 447,587,712 1 This is the total amount in the external sinking fund (as described in 10 CFR 50.75) to cover the costs of Nuclear Regulatory Commission-defined decommissioning.

2 This figure will be recalculated on an annual basis in accordance with 10 CFR 5 75 (b) and (c). The above amounts reflect the current projected annual contributions necessary to fully fund the decommissioning trust by the end of the operating license (license expiration January 18, 2014)

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NLS2003039 Attachment Page 2 of 3 Funding NRC Beginning Funding Requirement Fund Ending Minimum Year Balance Contribution In 2014 Interest Balance Escalated 2006 380,941,283 0 25,713,537 406,654,820 465,491,221 2007 406,654,820 0 27,449,200 434,104,020 484,110,870 2008 434,104,020 0 29,302,021 463,406,042 503,475,304 2009 463,406,042 0 31,279,908 494,685,949 523,614,317 2010 494,685,949 0 33,391,302 528,077,251 544,558,889 2011 528,077,251 0 35,645,214 563,722,465 566,341,245 2012 563,722,465 0 38,051,266 601,773,732 588,994,895 2013 601,773,732 0 40,619,727 642,393,459 612,554,690 2014 $642,393,459 $0 $637,056,878 $360,219 $5,696,800 $637,056,878 Rate Assumptions Rates of escalation used in estimating future decommissioning costs

• 4%

Rates of Earnings on Decommissioning Funds Post-tax 3

• 6.75%

3 The assumed annual real rate of return is 2.75 percent. The District's Board of Directors, as the licensee's rate setting authority, has approved the decommissioning funding budget for Cooper Nuclear Station that incorporates this assumption.

2

NLS2003039 Attachment Page 3 of 3 Contracts relied Upon to Demonstrate Decommissioning Funding Assurance [50.75(e)(1)(v)]: Not applicable Modifications to NPPD's Current Method of Providing Financial Assurance: None Material Changes to Decommissioning Trust Agreement: None NOTE 1: NPPD continues to maintain its Decommissioning Trust Fund investments in fixed income securities as required by Nebraska State Statutes.

NOTE 2: The 2003 transfer to the External Trust was made in January 2003.

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I ATTACHMENT 3 LIST OF REGULATORY COMMITMENTS Correspondence Number: NLS2003039 The following table identifies those actions committed to by Nebraska Public Power District (NPPD) in this document. Any other actions discussed in the submittal represent intended or planned actions by NPPD. They are described for information only and are not regulatory commitments. Please notify the NL&S Manager at Cooper Nuclear Station of any questions regarding this document or any associated regulatory commitments.

COMMITTED DATE COMMITMENT OR OUTAGE None I

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