NRC-09-0020, Decommissioning Funding Status Report

Decommissioning Funding Status Report

ML090900515
Person / Time
Site:	Fermi
Issue date:	03/25/2009
From:	Plona J DTE Energy
To:	Document Control Desk, Office of Nuclear Reactor Regulation
References
NRC-09-0020
Download: ML090900515 (3)

Text

Joseph H. Plona Site Vice President 6400 N. Dixie Highway, Newport, MI 48166 Tel: 734.586.5910 Fax: 734.586.4172 DTE Energy-A 10 CFR 50.75(f)(1)

March 25, 2009 NRC-09-0020 U. S. Nuclear Regulatory Commission Attention: Document Control Desk Washington D C 20555-0001

Reference:

Fermi 2 NRC Docket No. 50-341 NRC License No. NPF-43

Subject:

Decommissioning Funding 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 3430 megawatts thermal (MWt). Its operating license expires in 2025.

The requested biennial decommissioning fund information for Fermi 2, reported in 2008 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.

Sincerely, Enclosure r/"'*

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-09-0020 FERMI 2 NRC DECOMMISSIONING FUNDING STATUS REPORT Fermi 2 NRC Docket No. 50-341 NRC License No. NPF-43

4 Enclosure to NRC-09-0020 Page 1 NRC Decommissioning Funding Status Report Fermi 2 (Millions of Dollars)

1.

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

$914

2.

The amount accumulated at the end of calendar year preceding the date of the report for items included in 10CFR50.57(b) and (c).

$634

3.

The schedule of the annual amounts remaining to be collected for items in 10CFR50.75 (b) and (c). The collections for Fermi 2 decommissioning are included in the Company's rates. Currently, approximately $34 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 10CFR50.75(b) and (c).

amount remaining (1-2)

$280 number of years to collect (2009-2025) 16

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 funds 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:

The funds were moved to a new trustee in 2007. The revised Master Trust Agreement was previously submitted on March 31, 2008 (ADAMS Accession No. ML080990553).

It is similar to the previous trust agreement from a functional standpoint.

1 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.