NOC-AE-05001859, Decommissioning Funding Status Report - 2005

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Decommissioning Funding Status Report - 2005
ML050950427
Person / Time
Site: South Texas  STP Nuclear Operating Company icon.png
Issue date: 03/30/2005
From: Mallen F
South Texas
To:
Document Control Desk, Office of Nuclear Reactor Regulation
References
NOC-AE-05001859
Download: ML050950427 (14)
v • d • e


Text

Nuclear Operating Company South Teas Pd Station PO B 289 Wdhmh Tew 77483 Ekanc Generhljm4 File No.: G25 10CFR50.75 U. S. Nuclear Regulatory Commission Attention: Document Control Desk One White Flint North 11555 Rockville Pike Rockville, MD 20852 South Texas Project Units I and 2 Docket Nos. STN 50-498, STN 50-499 Decommissioning Funding Status Report - 2005 Pursuant to 10CFR50.75(f), the South Texas Project submits the attached reports on the status of funds available for decommissioning Units I and 2. The reports were prepared by the individual co-owners of the South Texas Project:

  • AEP Texas Central Company;
  • City Public Service Board of San Antonio; and
  • City of Austin - Austin Energy.

The attached reports provide the. following information for each co-owner:

  • Estimated amount of decommissioning funds required;
  • Amount accumulated by the end of calendar year 2004;
  • A schedule of the annual amounts remaining to be collected;

. Assumptions used regarding rates of escalation in decommissioning cost, rates of earnings on decommissioning funds, and rates of other factors used in funding projections;

  • Contracts upon which the owners rely pursuant to I 0CFR50.75(e)(1)(v);
  • Modifications to method of providing financial fund assurance; and
  • Material changes to trust agreements.

There are no commitments included in this report.

If there are any questions, please contact me at (361) 972-8085.

Frank H. Mallen General Manager, Financial Support Attachments:

1. 2004 Decommissioning Funding Status Report - Texas Genco, LP
2. 2004 Decommissioning Funding Status Report - AEP Texas Central Company
3. 2004 Decommissioning Funding Status Report - City Public Service Board of San Antonio
4. 2004 Decommissioning Funding Status Report - City of Austin - Austin Energy STI 31849027

NOC-AE-05001859 Page 2 of 2 cc:

(paper copy) (electronic copy)

Bruce S. Mallett A. H. Gutterman, Esquire Regional Administrator, Region IV Morgan, Lewis & Bockius LLP U.S. Nuclear Regulatory Commission 611 Ryan Plaza Drive, Suite 400 David H. Jaffe Arlington, Texas 76011-8064 U. S. Nuclear Regulatory Commission Richard A. Ratliff R. L. Balcom Bureau of Radiation Control Texas Genco, LP Texas Department of Health 1100 West 49th Street C. A. Johnson Austin, TX 78756-3189 AEP Texas Central Company Jeffrey Cruz C. Kirksey U. S. Nuclear Regulatory Commission City of Austin P. O. Box 289, Mail Code: MNI16 Wadsworth, TX 77483 Jon C. Wood Cox Smith Matthews C. M. Canady J. J. Nesrsta City of Austin R. K. Temple Electric Utility Department E. Alarcon 721 Barton Springs Road City Public Service Austin, TX 78704

ATTACHMENT I SOUTH TEXAS PROJECT 2004 DECOMMISSIONING FUNDING STATUS REPORT TEXAS GENCO, LP

Attachment 1 NOC-AE-05001 859 Page 1 of 2 2004 DECOMMISSIONING FUNDING STATUS REPORT Texas Genco, LP 30.8% Ownership of South Texas Project Unit 1 As provided in 10CFR50.75(f)(1), each power reactor licensee is required to report to the NRC on a calendar year basis, beginning on March 31, 1999, and every 2 years thereafter, on the status of its decommissioning funding for each reactor or share of reactor it owns.

1. The minimum decommissioning fund estimate, pursuant to 10CFR50.75(b) and (c)':

Total required: $113,836,800 Required by 12/31/2004: $43,073,384

2. The amount accumulated at the end of the calendar year preceding the date of the report for items included in 10CFR50.75(b) and (c):

Amount accumulated: $93,185,777

3. A schedule of the annual amounts remaining to be collected for items in 10CFR50.75(b) and (c):

Amount remaining: $45,517,047 Number of years to collect: 22.6

4. The assumptions used regarding escalation in decommissioning cost, rates of earnings on decommissioning funds, and rates of other factors used in funding projections:

Escalation rate: 3.01%

Earnings rate: 4.64% to 5.20%

5. Any contracts upon which the licensee is relying pursuant to 10CFR50.75(e)(1)(v):

None

6. Any modifications to a licensee's current method of providing financial assurance occurring since the last submitted report:

None

7. Any material changes to trust agreements:

None. Texas Genco's amended Decommissioning Trust Agreement for the South Texas Project dated August 31, 2002 contains a section which provides that except for disbursements for Administrative Costs, no disbursements or payments from the Funds shall be made by the Trustee unless the Trustee has first provided thirty days prior written notice of such disbursement or payment to the NRC.

'The NRC formulas in section 10CFR50.75(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.

Attachment 1 NOC-AE-05001 859 Page 2 of 2 2004 DECOMMISSIONING FUNDING STATUS REPORT Texas Genco, LP 30.8% Ownership of South Texas Project Unit 2 As provided in 10CFR50.75(f)(1), each power reactor licensee is required to report to the NRC on a calendar year basis, beginning on March 31, 1999, and every 2 years thereafter, on the status of its decommissioning funding for each reactor or share of reactor it owns.

1. The minimum decommissioning fund estimate, pursuant to 10CFR50.75(b) and (c)':

Total required: $113,836,800 Required by 12/31/2004: $41,939,874

2. The amount accumulated at the end of the calendar year preceding the date of the report for items included in 10CFR50.75(b) and (c):

Amount accumulated: $123,218,538

3. A schedule of the annual amounts remaining to be collected for items in 10CFR50.75(b) and (c):

Amount remaining: $21,349,284 Number of years to collect: 23.9

4. The assumptions used regarding escalation in decommissioning cost, rates of earnings on decommissioning funds, and rates of other factors used in funding projections:

Escalation rate: 3.01%

Earnings rate: 4.64% to 5.20%

5. Any contracts upon which the licensee is relying pursuant to 10CFR50.75(e)(1)(v):

None

6. Any modifications to a licensee's current method of providing financial assurance occurring since the last submitted report:

None

7. Any material changes to trust agreements:

None. Texas Genco's amended Decommissioning Trust Agreement for the South Texas Project dated August 31, 2002 contains a section which provides that except for disbursements for Administrative Costs, no disbursements or payments from the Funds shall be made by the Trustee unless the Trustee has first provided thirty days prior written notice of such disbursement or payment to the NRC.

'The NRC formulas in section 10CFR50.75(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.

ATTACHMENT 2 SOUTH TEXAS PROJECT 2004 DECOMMISSIONING FUNDING STATUS REPORT AEP TEXAS CENTRAL COMPANY I.

7 -

STI 31849027

Attachment 2 NOC-AE-05001859 Page 1 of 2 2004 DECOMMISSIONING FUNDING STATUS REPORT AEP Texas Central Company 25.2% Ownership of South Texas Project Unit I As provided in 10CFR50.75(f)(1), each power reactor licensee is required to report to the NRC on a calendar year basis, beginning on March 31, 1999, and every 2 years thereafter, on the status of its decommissioning funding for each reactor or share of reactor it owns.

1. The minimum decommissioning fund estimate, pursuant to 10CFR50.75(b) and (c)':

Total required: $92,901,060 Required by 12/31/2004: $35,151,752

2. The amount accumulated at the end of the calendar year preceding the date of the report for items included in 10CFR50.75(b) and (c):

Amount accumulated: $63,873,227

3. A schedule of the annual amounts remaining to be collected for items in 10CFR50.75(b) and (c):

Amount remaining: $77,196,388 Number of years to collect: 23

4. The assumptions used regarding escalation in decommissioning cost, rates of earnings on decommissioning funds, and rates of other-factors used in funding projections:

Escalation factor: 4.18%

Net earnings rate (after taxes and fees): 5.76%

(These percentages are based upon AEP Texas Central's most recent rate case.)

5. Any contracts upon which the licensee is relying pursuant to 10CFR50.75(e)(1)(v):

No contracts. The source of funds for the external decommissioning fund is cost-of-service regulation.

6. Any modifications to a licensee's current method of providing financial assurance occurring since the last submitted report:

None

7. Any material changes to trust agreements:

The trust agreement has been amended to comply with the requirements of 10CFR50.75(h)(2).

'The NRC formulas in section 10CFR50.75(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.

Attachment 2 NOC-AE-05001859 Page 2 of 2 2004 DECOMMISSIONING FUNDING STATUS REPORT AEP Texas Central Company 25.2% Ownership of South Texas Project Unit 2 As provided in 10CFR50.75(f)(1), each power reactor licensee is required to report to the NRC on a calendar year basis, beginning on March 31, 1999, and every 2 years thereafter, on the status of its decommissioning funding for each reactor or share of reactor it owns.

1. The minimum decommissioning fund estimate, pursuant to 10CFR50.75(b) and (c)':

Total required: $92,901,060 Required by 12/3112004: $34,226,706

2. The amount accumulated at the end of the calendar year preceding the date of the report for items included in 10CFR50.75(b) and (c):

Amount accumulated: $78,625,390

3. A schedule of the annual amounts remaining to be collected for items in 10CFR50.75(b) and (c):

Amount remaining: $110,949,912 Number of years to collect: 24

4. The assumptions used regarding escalation in decommissioning cost, rates of earnings on decommissioning funds, and rates of other factors used in funding projections:

Escalation factor: 4.18%

- et earnings rate N

(after taxes and fees): 5.76%

(These percentages are based upon AEP Texas Central's most recent rate case).

5. Any contracts upon which the licensee is relying pursuant to 10 CFR 50.75(e)(1)(v):

No contracts. The source of funds for the external decommissioning fund is cost-of-service regulation.

6. Any modifications to a licensee's current method of providing financial assurance occurring since the last submitted report:

None

7. Any material ctanges to trust agreements:

The trust agreement has been amended to comply with the requirements of 10CFR50.75(h)(2).

'The NRC formulas in section 10CFR50.75(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 inthe cost formulas.

ATTACHMENT 3 SOUTH TEXAS PROJECT 2004 DECOMMISSIONING FUNDING STATUS REPORT CITY PUBLIC SERVICE OF SAN ANTONIO STI 31849027

Attachment 3 NOC-AE-05001 859 Page 1 of 2 2004 DECOMMISSIONING FUNDING STATUS REPORT City Public Service of San Antonio 28% Ownership of South Texas Project Unit I As provided in 10 CFR 50.75(f)(1), each power reactor licensee is required to report to the NRC on a calendar year basis, beginning on March 31, 1999, and every 2 years thereafter, on the status of its decommissioning funding for each reactor or share of reactor it owns.

1. The minimum decommissioning fund estimate, pursuant to 10CFR50.75(b) and (c)':

Total required: $103,488,000 Required by 12/31/2004: $39,157,622

2. The amount accumulated at the end of the calendar year preceding the date of the report for items included in 10CFR50.75(b) and (c):

Amount accumulated: $100,602,148

3. A schedule of the annual amounts remaining to be collected for items in IOCFR50.75(b) and (c) (in current year dollars):

Amount remaining: $56,810,000 Number of years to collect: 23

4. The assumptions used regarding escalation in decommissioning cost, rates of earnings on decommissioning funds, and rates of other factors used in funding projections:

Escalation rate: 4.72%

Earnings rate: 4.45% to 6.16%

5. Any contracts upon which the licensee is relying pursuant to 10CFR50.75(e)(1)(v):

None

6. Any modifications to a licensee's current method of providing financial assurance occurring since the last submitted report:

None

7. Any material changes to trust agreements:

The trust agreement has been revised to comply with the requirements of 10CFR50.75(h)(2).

1 The NRC formulas in section 10CFR50.75(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.

Attachment 3 NOC-AE-05001 859 Page 2 of 2 2004 DECOMMISSIONING FUNDING STATUS REPORT City Public Service of San Antonio 28% Ownership of South Texas Project Unit 2 As provided in 10 CFR 50.75(f)(1), each power reactor licensee is required to report to the NRC on a calendar year basis, beginning on March 31, 1999, and every 2 years thereafter, on the status of its decommissioning funding for each reactor or share of reactor it owns.

1. The minimum decommissioning fund estimate, pursuant to 10CFR50.75(b) and (c)':

Total required: $103,488,000 Required by 1213112004: $38,127,158

2. The amount accumulated at the end of the calendar year preceding the date of the report for items included in 10CFR50.75(b) and (c):

Amount accumulated: $121,808,080

3. A schedule of the annual amounts remaining to be collected for items in 10CFR50.75(b) and (c) (in current year dollars):

Amount remaining: $59,880,000 Number of years to collect: 24

4. The assumptions used regarding escalation in decommissioning cost, rates of earnings on decommissioning funds,-and rates of other factors used infunding projections:

Escalation rate: 4.72%

Earnings rate: 4.45% to 6.16%

5. Any contracts upon which the licensee is relying pursuant to 10 CFR 50.75(e)(1)(v):

None

6. Any modifications to a licensee's current method of providing financial assurance occurring since the last submitted report:

None

7. Any material changes to trust agreements:

The trust agreement has been amended to comply with the requirements of IOCFR50.75(h)(2).

The NRC formulas in section 10CFR50.75(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.

ATTACHMENT 4 SOUTH TEXAS PROJECT 2004 DECOMMISSIONING FUNDING STATUS REPORT CITY OF AUSTIN - AUSTIN ENERGY STI 31849027

Attachment 4 NOC-AE-05001859 Page 1 of 2 2004 DECOMMISSIONING FUNDING STATUS REPORT City of Austin - Austin Energy 16% Ownership of South Texas Project Unit I As provided in 10CFR50.75(f)(1), each power reactor licensee is required to report to the NRC on a calendar year basis, beginning on March 31, 1999, and every 2 years thereafter, on the status of its decommissioning funding for each reactor or share of reactor it owns.

1. The minimum decommissioning fund estimate, pursuant to 10CFR50.75(b) and (c)':

Total required: $58,984,486 Required by 1213112004: $22,318,454 The amount accumulated at the end of the calendar year preceding the date of the report for items included in IOCFR50.75(b) and (c):

Amount accumulated: $45,428,333

2. A schedule of the annual amounts remaining to be collected for items in 10CFR50.75(b) and (c):

Amount remaining: $54,155,280 Number of years to collect: 23

3. The assumptions used regarding escalation in decommissioning cost, rates of earnings on decommissioning funds, and rates of other factors used in funding projections:

Escalation rate: 5.18%

Earnings rate: 6.0%

4. Any contracts upon which the licensee is relying pursuant to 10CFR50.75(e)(1)(v):

None

5. Any modifications to a licensee's current method of providing financial assurance occurring since the last submitted report:

None

6. Any material changes to trust agreements.

The trust agreement has been amended to comply with the requirements of 10CFR50.75(h)(2).

1 The NRC formulas in section 10CFR50.75(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.

Attachment 4 NOC-AE-05001 859 Page 2 of 2 2004 DECOMMISSIONING FUNDING STATUS REPORT City of Austin - Austin Energy 16% Ownership of South Texas Project Unit 2 As provided in 10CFR50.75(f)(1), each power reactor licensee is required to report to the NRC on a calendar year basis, beginning on March 31, 1999, and every 2 years thereafter, on the status of its decommissioning funding for each reactor or share of reactor it owns.

1. The minimum decommissioning fund estimate, pursuant to 10CFR50.75(b) and (c)':

Total required: $58,984,486 Required by 12/31/2004: $21,731,126

2. The amount accumulated at the end of the calendar year preceding the date of the report for items included in IOCFR50.75(b) and (c):

Amount accumulated: $55,620,737

3. A schedule of the annual amounts remaining to be collected for items in 10CFR50.75(b) and (c):

Amount remaining: $62,612,771 Number of years to collect: 24

4. The assumptions used regarding escalation in decommissioning cost, rates of earnings on decommissioning funds, and rates of other factors used in funding projections:

Escalation rate: 5.18%

Earnings rate: 6.0%

5. Any contracts upon which the licensee is relying pursuant to 10CFR50.75(e)(1)(v):

None

6. Any modifications to a licensee's current method of providing financial assurance occurring since the last submitted report:

None

7. Any material changes to trust agreements:

The trust agreement has been amended to comply with the requirements of 10CFR50.75(h)(2).

The NRC formulas in section 10CFR50.75(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.

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