NRC-07-0016, Decommissioning Funding Status Report for Fermi 2
| ML070960248 | |
| Person / Time | |
|---|---|
| Site: | Fermi  |
| Issue date: | 03/29/2007 |
| From: | Cobb D DTE Energy |
| To: | Document Control Desk, NRC/NRR/ADRO |
| References | |
| NRC-07-0016 | |
| Download: ML070960248 (3) | |
Text
Donald K. Cobb Assistant Vice President, Nuclear Generation Fermi 2 6400 North Dixe Hwy., Newport, MI 48166 Tel: 734.586.5201 Fax: 734.586.4172 DTE EnergV-10 CFR 50.75(f)(1)
March 29, 2007 NRC-07-0016 U. S. Nuclear Regulatory Commission Attention: Document Control Desk Washington D C 20555-0001
Reference:
Fermi 2 NRC Docket No. 50-34 1 NRC License No. NP~F-43 Subj ect:
Decommissioning Fundingz Status Report for Fermi 2 This letter provides the report required by 10 CFR 50.75(f)(1) on the status of Detroit Edison's decommissioning fund for Fermi 2.
Fermi 2 is an operating boiling water reactor with a licensed power of 3430MWt. Its operating license expires 'in 2025.
The requested biennial decommissioning fund information for Fermi 2, reported in 2006 dollars, is provided as an enclosure to this letter. An external sinking fund is being used to accumulate monies for the decommissioning of Fermi 2.
Should you have any questions or require additional *information, please contact Ms. Lynne Goodman of my staff at (734) 586-1205.
Enclosure cc:
NRC Project Manager Reactor Projects Chief, Branch 4, Region III NRC Resident Office Regional Administrator, Region III Supervisor, Electric Operators, Michigan Public Service Commission
ENCLOSURE TO NRC-07-0016 FERMI 2 NRC DECOMMISSIONING FUNDING STATUS REPORT Fermi 2 NRC Docket No. 50-341 NRC License No. NPF-43 I
Enclosure to NRC-07-00 16 March 29, 2007 Page 1 of 1 NRC Decommissioning Funding Status Report Fermi 2 (Millions of Dollars)
- 1.
The minimum decommissioning fund estimate, pursuant
$844 to 10 CFR 50.75 (b) and (c)':
- 2.
The amount accumulated at the end of calendar year preceding
$681 the date of the report for items *included in 10 CFR 50.57 (b) and (c):
- 3.
The schedule of the annual amounts remaining to be collected for items in 10 CFR 50.75 (b) and (c):
The collections for Fermi 2 decommissioning are included in the Company's rates. Currently, approximately $35 million is being collected per year for Fermi 2 decommissioning. The Exact amount per year is based on sales. The amount being collected includes provision for site restoration, in addition to nuclear decommissioning items included in I1OCFR5O.75(b) and (c).
amount remaining (1 -2)
-$163
- years to collect (2007-2025) 18
- 4.
The assumptions used regarding escalation in decommissioning cost, rates of earnings on decommissioning fund, and rates of other factors used in funding projections:
All decommissioning costs are assumed to increase at 6.0% annually; decommissioning fuinds are assumed to earn at 7.0% after-tax, therefore, the real rate of return is less than 2%.
- 5.
Any contracts upon which the licensee is relying pursuant to 10 CFR 50.75(e)(1)(v):
None
- 6.
Any modifications to the current method of providing financial assurance occurring since the last submitted report:
None
- 7.
Any material changes to the trust agreement:
None The NRC formulas in section 10 CFR 50.75(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.