NRC-15-0039, Decommissioning Funding Status Report for Fermi, Unit 2

Decommissioning Funding Status Report for Fermi, Unit 2

ML15087A012
Person / Time
Site:	Fermi
Issue date:	03/26/2015
From:	Kaminskas V DTE Energy
To:	Document Control Desk, Office of Nuclear Reactor Regulation
References
NRC-15-0039
Download: ML15087A012 (4)

Text

Vito A. Kaminskas Site Vice President DTE Energy Company 6400 N. Dixie Highway, Newport, MI 48166 Tel: 734.586.6515 Fax: 734.586.4172 Email: kaminskasv@dteenergy.com DTE Energy-10 CFR 50.75(f)(1)

March 26, 2015 NRC-15-0039 U. S. Nuclear Regulatory Commission Attention: Document Control Desk Washington D C 20555-0001

References:

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 decommissioning fund for Fermi 2.

Fermi 2 is an operating boiling water reactor with a licensed power of 3486 Megawatt Thermal (MWt). The Fermi 2 operating license expires in 2025.

The requested annual decommissioning fund information for Fermi 2, reported in 2014 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 Michigan Public Service Commission, Regulated Energy Division (kindschlamichigan.gov)

Enclosure To NRC-15-0039 Decommissioning Funding Status Report for Fermi 2 Fermi 2 NRC Docket No. 50-341 NRC License No. NPF-43

Enclosure to NRC-15-0039 Page 1 NRC Decommissioning Funding Status Report Fermi 2 (Millions of Dollars)

1. The minimum decommissioning fund estimate, pursuant $1070 1 energy, and burial factors used in DTE's to 10 CFR 50.75 (b) and (c) . The labor, calculation of the minimum requirement for decommissioning financial assurance for Fermi 2 are: Labor (L) - 2.5, Energy (E) - 2.255 and Waste Burial (B) - 27.295.

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

2. The post-tax amount accumulated at the end of calendar year preceding $1156 the date of the 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. DTE has requested the Michigan Public Service Commission to decrease the yearly collection for Fermi 2 decommissioning to $2.9 million.

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 2014, 85% of collections were placed in the nuclear decommissioning account.

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

As provided in items 1 and 2 above, the current amount accumulated for Fermi 2 decommissioning fully meets the minimum decommissioning fund estimate pursuant to 10CFR50.75 (b) and (c).

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-15-0039 Page 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