NLS2009019, Submittal of Sixth Biennial Report on Financial Assurance for Decommissioning Planning for Cooper Nuclear Station

Submittal of Sixth Biennial Report on Financial Assurance for Decommissioning Planning for Cooper Nuclear Station

ML090890188
Person / Time
Site:	Cooper
Issue date:	03/24/2009
From:	Vanderkamp D Nebraska Public Power District (NPPD)
To:	Document Control Desk, Office of Nuclear Reactor Regulation
References
NLS2009019
Download: ML090890188 (5)

Text

H Nebraska Public Power District

'Always there when you need us" NLS2009019 March 24, 2009 U.S. Nuclear Regulatory Commission Attention: Document Control Desk Washington, D.C. 20555-0001

Subject:

Decommissioning Funding Cooper Nuclear Station, Docket No. 50-298, DPR-46

Dear Sir or Madam:

The purpose of this letter is to provide Nebraska Public Power District's Sixth Biennial Report on Financial Assurance for Decommissioning Planning for Cooper Nuclear Station in Accordance with 10 CFR 50.75(f)(1), Reporting and Recordkeeping 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 at (402) 825-2904.

Sincerely, David Van Der Kamp Licensing Manager J o0 Enclosure cc: Regional Administrator w/enclosure Cooper Project Manager w/enclosure USNRC - Region IV USNRC - NRR Project Directorate IV-1 Senior Resident Inspector w/enclosure NPG Distribution w/o enclosure USNRC - CNS CNS Records w/enclosure COOPER NUCLEAR STATION P.O. Box 98 / Brownville, NE 68321-0098 Telephone: (402) 825-3811 / Fax: (402) 825-5211 www'nppd.com

NLS2009019 Enclosure Page 1 of3 NEBRASKA PUBLIC POWER DISTRICT Sixth Biennial Report on Financial Assurance for Decommissioning in Accordance with 10 CFR 50.75(0(1)

NEBRASKA PUBLIC POWER DISTRICT Sixth Biennial Report on Financial Assurance for Decommissioning In Accordance with 10 CFR 50.75(f) (1)

Date: March 31, 2009 Station: Cooper Nuclear Station Owner/licensee making the report: Nebraska Public Power District Nebraska Public Power District (the "District") is a public corporation and political subdivision of the state of Nebraska. The District 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. The District is accordingly authorized to establish its own rates and other charges through which it can recover its cost of service. The District is governed by an 11-member Board of Directors who are popularly elected from the District's chartered territory. The Board of Directors is the rate making authority for the District.

Percentage Ownership: 100 10 CFR 50.75 (b) & (c) Decommissioning Estimate (2008 Dollars): $523,328,0001 Decommissioning Fund 2 Total as of 12131/2008: $425,910,483 3

Schedule of Future Annual Fund Earnings and Decommissioning Cost Escalation:

Funding NRC Beginning Funding Requirement Fund Ending Minimum Year Balance Contribution In 2014 - 2020 Interest Balance Escalated 2009 425,910,483 23,425,077 449,335,560 $523,328,000 2010 449,335,560 24,713,456 474,049,015 $539,027,840 2011 474,049,015 26,072,696 500,121,711 $555,198,675 2012 500,121,711 27,506,694 527,628,405 $571,854,635 2013 527,628,405 24,840,565 29,702,678 582,171,648 $589,010,275 2014 582,171,648 89,268,714 27,109,661 520,012,595 $606,680,583 2015 520,012,595 91,946,776 23,543,620 451,609,439 2016 451,609,439 94,705,179 19,629,734 376,533,994 2017 376,533,994 97,546,335 15,344,321 294,331,981 2018 294,331,981 100,472,725 10,662,259 204,521,515 2019 204,521,515 103,486,906 5,556,903 106,591,512 2020 $106,591,512 $106,591,512 $0 $0 1 This updated estimate is based upon NRC decommissioning minimum certification escalation requirements in 10 CFR 50.75(c) (1) and (2) and guidance per NUREG 1307 for a BWR the size of Cooper Nuclear Station. The calculation utilizes the waste burial factor in Revision 13 of NUREG 1307 and Labor and Energy escalation factors derived from regional data of the U.S. Department of Labor Bureau of Labor Statistics.

2 This is the total amount in the external sinking fund (as described in 10 CFR 50.75) to cover the costs of NRC-defined decommissioning 3 These figures will be recalculated on an annual basis in accordance with 10 CFR 50.75 (b) and (c). The above amounts reflect the current projected annual contributions (including fund earnings) necessary to fully fund the decommissioning trust by the end of the operating license (license expiration January 18, 2014), and taking into account a pro rata credit during the dismantlement period (recognizing both cash expenditures and earnings) over the first seven years after shutdown (see 10 CFR 50.75(e) (1) (ii)'

Rate Assumptions Rates of escalation used in estimating future decommissioning costs

• 3%

Rates of Earnings on Decommissioning Funds Post-tax 4

• 5.5%

Contracts Relied Upon to Demonstrate Decommissioning Funding Assurance [50.75(e) (1)

(v)]: Not applicable Modifications to the District's Current Method of Providing Financial Assurance: None Material Changes to Decommissioning Trust Agreement: None NOTE 1: The District continues to maintain its Decommissioning Trust Fund investments in fixed income securities as required by Nebraska State Statutes.

NOTE 2: The District previously submitted to the NRC a preliminary site specific Decommissioning Cost Estimate pursuant to 50.75(f) (3), which is to be filed at or about five years prior to the current projected end of operations for Cooper Nuclear Station, on December 15, 2008. The District also submitted the Program for Management of Irradiated Fuel (10 CFR 50.54(bb) for Cooper Nuclear Station on December 23, 2008. In addition, in September, 2008, the District submitted a License Renewal application for Cooper Nuclear Station to extend the license period for 20 years, to 2034.

The calculations in this document do not take credit for the potential additional 20 years of earnings on the decommissioning fund. Nor do these calculations take credit for the time value of money associated with the 60 year SAFSTOR decommissioning program.

4 The assumed annual real rate of return is 2.50 percent. The District's Board of Directors (as the licensee's rate setting authority) has approved this assumption for the decommissioning funding plan for Cooper Nuclear Station through the adoption of a Board Resolution as part of its official business.

2

4 ATTACHMENT 3 LIST OF REGULATORY COMMITMENTS© ATTACHMENT 3 LIST OF REGULATORY COMMITMENTS©4 Correspondence Number: NLS2009019 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 Licensing Manager at Cooper Nuclear Station of any questions regarding this document or any associated regulatory commitments.

COMMITMENT COMMITTED DATE COMMITMENT NUMBER OR OUTAGE None 4 4 4 4 4 4 4 4 4 4 4 4 4 4 4 4 4 4 I PROCEDURE 0.42 REVISION 23 PAGE 18 OF 25 1