NRC-13-0016, Decommissioning Funding Status Report

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Decommissioning Funding Status Report
ML13088A034
Person / Time
Site: Fermi DTE Energy icon.png
Issue date: 03/28/2013
From: Conner J
DTE Energy
To:
Document Control Desk, Office of Nuclear Reactor Regulation
References
NRC-13-0016
Download: ML13088A034 (4)


Text

J Todd Corner Site Vice President DTE Energy Company 6400 N.Dixie Highway, Newport, MI 48166 Tel: 734.586.4849 Fax: 734.586.5295 Email: connerj@dteenergycon DTE Energy-10 CFR 50.75(f)(1)

March 28, 2013 NRC-13-0016 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 DTE Electric Company's (previously, The Detroit Edison Company) decommissioning fund for Fenmi 2.

Fermi 2 is an operating boiling water reactor with a licensed power of 3430 Megawatt Thermal (MWt). The Fermi 2 operating license expires in 2025.

The requested annual decommissioning fund information for Fermi 2, reported in 2012 dollars, is provided in the 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 cc: NRC Project Manager NRC Resident Office Reactor Projects Chief, Branch 5, Region III Regional Administrator, Region III Supervisor, Electric Operators, Michigan Public Service Commission

Enclosure To NRC-13-0016 Decommissioning Funding Status Report for Fermi 2 Fermi 2 NRC Docket No. 50-341 NRC License No. NPF-43

Enclosure to NRC-13-0016 Page 1 NRC Decommissioning Funding Status Report Fermi 2 (Millions of Dollars)

1. The minimum decommissioning fund estimate, pursuant $1070 to 10 CFR 50.75 (b) and (c)'. The labor, energy, and burial factors used in DTE's calculation of the minimum requirement for decommissioning financial assurance for Fermi 2 are: Labor (L) - 2.41, Energy (E) - 2.705 and Waste Burial (B) - 27.295.

The source of the factors is in accordance with the guidance in NUREG-1307 Rev 15.

2. The amount accumulated at the end of calendar year preceding the date of the $973 report for items included in 10 CFR 50.75 (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 $13 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 and fuel monitoring in addition to nuclear decommissioning items included in 10CFR50.75(b) and (c).

In 2012, 85% of collections were placed in the nuclear decommissioning account.

Based on the current adequacy of funding, it is expected that the majority of future collections will be placed in the other accounts.

Amount remaining ($1070-$973) $97 No. of years to collect (2013-2025) 12 Note that the existing fund escalated at a 1% real rate of return is sufficient to meet target funding.

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%. MPSC Case No. U-16472 addresses these parameters used in establishing rates for funding of decommissioning costs.

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.

Enclosure to NRC-13-0016 Page 2

5. Any contracts upon which the licensee is relying pursuant to None 10 CFR 50.75 (e) (1) (v):
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