PLA-5041, Forwards Proprietary & Redacted Decommissioning Rept of Financial Assurance for Util 90% Interest in Sses,Units 1 & 2,per 10CFR50.75(f)(1).Proprietary Info Withheld,Per 10CFR2.790

Forwards Proprietary & Redacted Decommissioning Rept of Financial Assurance for Util 90% Interest in Sses,Units 1 & 2,per 10CFR50.75(f)(1).Proprietary Info Withheld,Per 10CFR2.790

ML20205F387
Person / Time
Site:	Susquehanna
Issue date:	03/29/1999
From:	Byram R PENNSYLVANIA POWER & LIGHT CO.
To:	NRC OFFICE OF INFORMATION RESOURCES MANAGEMENT (IRM)
Shared Package
ML20137F019	List: PLA-5041, Forwards Proprietary & Redacted Decommissioning Rept of Financial Assurance for Util 90% Interest in Sses,Units 1 & 2,per 10CFR50.75(f)(1).Proprietary Info Withheld,Per 10CFR2.790
References
PLA-5041, NUDOCS 9904060215
Download: ML20205F387 (10)

Text

.

s Ve.\ l:/ ',

. . Robert G. Byram PP&L, Inc. i.y[/

Senior Vice President Two North Ninth Street ** ,

Generation and Chief Nuclear Officer Allentown, PA 18101 1179 +*g Tel. 610.774.7502 Fax 610.774.5019 Tel. 610.774.5151 N ,,

E-mail: rgbyram@papl.com http://wwxpapi.com/

MAR 2 91999 U. S. Nuclear Regulatory NOTE: THIS DOCUMENT CONTAINS

t. o ument Controi nesk INFORMATION TO BE WITHHELD IN Mail Station PI-137 ACCORDANCE WITH 10CFR2.790 Washington, D. C. 20555 j l

SUSQUEIIANNA STEAM ELECTRIC STATION DECOMMISSIONING REPORT OF FINANCIAL ASSURANCE Docket Nos. 50-387 PLA-5041 and 50-388 In accordance with 10 CFR 50.75(f)(1), attached please find the PP&L, Inc. decommissioning report of financial assurance for our ninety percent interest in Susquehanna Units 1 and 2.

If you have any questions regarding our decommissioning report, please direct them to Mr. Terry L. Harpster at (610) 774-7504.

Sincerely,

" O ""

Attachment:

Decommissioning report b a\

copy: NRC Region I l Mr. V. Nerses, NRC Sr. Project Manager - OWFN Mr. S. L. Hansell, Acting NRC Sr. Resident Inspector - SSES Mr. R. f'. Wood, NRC - OWFN Mr. D. J. Allard, Pa. DEP Cl LT L 9 t1 ' '~

9904060215 990329 ~ DS PDR ADOCK 05000387 I PDR ,

E ,

],

e i

AFFIDAVIT OF ROBERT G. BYRAM I, Robert G. Byram, Sr. Vice President-Generation / Chief Nuclear Officer of PP&L, Inc. ( PP&L"), do hereby affirm and state:

1. I am an officer of PP&L authorized to execute this affidavit on its behalf.

I am further authorized to review information submitted to the Nuclear Regulatory Commission and apply for the withholding ofinformation from disclosure.

2. PP&L requests that certain portions of the document attached hereto

("PP&L Decommissioning Report") be withheld from public disclosure under the provisions of .10 C.F.R. 2.790(a)(4). A copy of the document indicating the portions sought to be withheld is also attached.

3. The PP&L Decommissioning Report contains confidential financial and commercialinformation that should be withheld under 10 C.F.R. 2.790(a).  ;

4. This information has been held in confidence by PP&L. To the extent that j PP&L has shared this information with others, it has done so on a confidential basis. l l

5. There is a rational basis for holding this information in confidence. The PP&L Decommissioning Report contains financial and other commercially sensitive information which requires protection in connection with PP&L's commercial position in the competitive electric utility industry.

G. This information is customarily held in confidence by PP&L in order to protect its competitive position in the marketplace.

7. This information is being transmitted and received in confidence. It is not available from public sources and could not be gathered readily from other publicly l available information.

8. Public disclosure of this information would cause substantial harm to the competitive position of PP&L, because such information could be used by others to harm it and thereby gain a competitive advantage over it.

PP&L, INC. l k

ert 2. Byram Subscribed and sworn befer me, a Notary Public in and for the -

Commonwealth of Pennsylvania l this M

• day of MM ,1999. I e:-  % &- ==s

() .

NOTARIAL SEAL JANICE M. REESE, Notary Public of Allentown, Lehigh County, PA My mission Expires June 11,2001

1 1

i l

l ATTACHMENT 2 TO PLA-5041 l

t REDACTED VERSION FOR 2.790 REQUEST 4

l l

l l

\

I l .

l l

Attachment 2 to PLA-5041 Page 1 of 3 j BEFORE THE NUCLEAR REGULATORY COMMISSION PP&L, INC. Docket Nos. 50-387 & 50-388 Decommissioning Report For Unit 1 and Unit 2 of the Susauehanna Steam Electric Station PP&L, Inc. hereby submits this Decommissioning Report in compliance with 10 CFR 50.75(f)(1). f

1. UNIT INFORMATION i

I Station Susauchanna Unit 1 )

Owner / licensee PP&L, Inc Percentage Ownership 90 Decommissioning Section 50.75(b) & (c) Estimate in 1998 Dollars

$329,273,019 )

Owner's Decommissioning Fund Total at 12/31/98 $110,961,453 Station Susauchanna Unit 2 1 l

Owner / licensee PP&L, Inc Percentage Ownership 90 Decommissioning Section 50.75(b) & (c) Estimate in 1998 Dollars

$329,273,019 Owner's Decommissioning Fund Total at 12/31/98 $94,886,325

Attachment 2 to PLA-5041 Page 2 of 3

2. ASSUMPTIONS Rates of escalation used in estimating decommissioning costs The estimated decommissioning costs were escalated in accordance with 10 CFR 50.75(c)(2).

Exhibit 1 includes the factors used in the escalation and the calculation of the minimum amount of decommissioning funds to be provided.

Rates of earnings on decommissioning funds A 3.5% real return was used to calculate the earnings on the decommissioning funds as permitted under 10 CFR 50.75(e)(1)(ii). The 3.5% rate is based on the real return allowed on the decommissioning funds in an order entered by the Pennsylvania Public Utility Commission (Pa.

PUC) on Sep&ber 27,1995 at Docket No. R-00943271.

3. ESTIMATE OF REMAINING PAYMENT SCHEDULE TO THE DECOMMISSIONING FUND Attached as Exhibit 2 to this decommissioning report is a calculation of the projected trust fund value for each unit at the time the current license expires for each unit.

The values in Exhibit 2 reflect the following contributions:

Pa. PUC Customers - Projected contributions to the trusts for the years 1999 through 2009 are from revenues provided by a non-bypassable wires charge approved by the Pa. PUC in 1 an order entered August 27,1998 at Docket No. R-00973954. The projected contributions )

from the Pa. PUC customers total $77,936,483 for Unit 1 and $121,659,864 for Unit 2.  !

FERC Customers - Contributions to the trusts from FERC wholesale bulk power customers include the JCP&L contract for 1999 and the 3G&E contract for 1999,2000 and the first 5 months of 2001.

I I 1 l

4. MODIFICATIONS OCCURRING TO THE OWNER'S CURRENT METHOD OF PROVIDING l FINANCIAL ASSURANCE SINCE THE LAST SUBMITTED REPORT Since the Decommissioning Report was submitted last on July 20, 1990, collection of decommissioning funds has shifted from a fully allocated cost-of-service " bundled" electric rate to a separate non-bypassable wires charge as described in 10 CFR 50.75(e)(1)(ii)(B). The PUC approved Joint Petition for Full Settlement of FP&L inc 's Restructuring Plan and Related Court Proceedings contains provisions which allow for the recovery of decommissioning funds through a non-bypassable wires charge, referred to as a Competitive Transition Charge (CTC). The amount to be recovered from Pa. PUC customers as provided for in the Joint Settlement is approximately $129 million on a net present value basis. The amount to be recovered from FERC wholesale customers is based on the rate set in the Settlement Agreement approved by FERC on July 19,1994 at Docket No. ER94-945-000.

!~ .

Attachment 2 to PLA-5041 Page 3 of 3

5. MATERIAL CHANGES TO TRUST AGREEMENTS A number of changes to the Nuclear Decommissioning Trust Agreement have been made since the last report. In 1992, Mellon Bank (DE), N.A. succeeded CoreStates Bank as trustee. In 1994, the Trust Agreement was amended to reflect the fact that Mellon Bank, N.A. succeeded Mellon Bank (DE), N.A. as trustee.

All inquiries, notices and other communications concerning this report should be directed to:

PP&l, Inc.

Attn: Mr. Terry L. Harpster Manager - Nuclear Licensing Two North Ninth Street MC GENA 6-1 Allentown, PA 18101-1179 l

Exhibit 1 to PLA-5041 Page 1 of 2 PP&L INC.

COMPUTATION OF MINIMUM FINANCIAL ASSURANCE AMOUNT FOR DECOMMISSIONING SUSQUEHANNA STEAM ELECTRIC STATION UNITS ONE AND TWO Unit 1 Unit 2 Base amount for BWR greater than 3,400 MWt=$1'35 million The Power Level of Unit 1 and Unit 2 are=3,441 MWt 135,000,000 135,000,000 Ownership percentage 90 % 90%

Base amount per unit 121,500,000 121,500,000 Escalation Factor 2.710066 2.710066 Escalated Amount per Unit 329,273,019 329,273,019 Total Escalated Amount (Unit i + Unit 2) 658,546,038 l

I l

l i

1 m._ l

)

Exhbiti i to PL45041 CALCULATION OF ESCALATION FACTORS Page 2 of 2 USED IN COMPUTAUON OF MINIMUM FINANCIAL ASSURANCE I AMOUNT FOR DLCOMMISSIONING SUSQUEHANNA STEAM ELECTRIC STATION UNITS ONE AND TWO Boiling Water Reactor (BWR)  ;

Escalation Factor )

Formula- 0.65(L)+ 0.13(E) + 0.22(B)

Escalation = (.65 x 1.63245) + (.13 x 0.892411) + (.22 x 6.968)

Escalation = (1061093 + 0.116013 + 1.53296) = 2.710066 i

(L)- Labor-(Bureau of Labor Statistics, Table 4, Compensation, Employment Cost Index,

. for total compensation, private industry workers, by bargaining status, region and )

area size Northeast region- June 1998 Index Number 213.035 January 1986 Index Number 130.5 L= 213.035 equals 1.63245 130.5 j 1

(E)- ENERGY (Producer Price Index Commodities, Series ID: WPUO543 and WPUO573) l J

E= (.54P +.46F)

E= (.54 x 1.171629) + (.46 x 0.564634)

E= 0.632680 + 0.259732 = 0.892411 P-Industrial Power, 500 KW demand - (Commodity 0543)

June 1998 Index Number 133.8 January 1986 Index Number 114.2 (1)

P= 133.8 equals 1.171629 114.2 F-Light fuel oils -(Commodity 0573)

June 1998 Index Number 46.3 January 1986 Index Number 82.0 F= 46.3 equals 0.564634 82.0 (B) Waste Burial NUREG - 1307 "NRC Report on Waste Burial Charges" Table 2.1 d South Carolina Factor 6.968 j l

(1) Represents the national base value of P at January 1986. The base value of P is no longer determined on a regional basis. I

)

Exhibit 2 to PLA-5041 Page i of 2 PP&L Nuclear Decommissioning l Assets-$ in thousands l

Total Unit 1 Unit 2 )

I 1 1

i I

l i

i l

i l

l l

l l

a

(-

)

Exhibit 2 to PLA-5041 Page 2 of 2 l

PP&L Nuclear Decommissioning Trust l

Expected Contributions Unit 1 Unit 1 Unit 1 Unit 2 Unit 2 Unit 2 l PUC FERC Total PUC FERC. Total

Customers Customers Customers Customers Customers Customers Grand total 1999 8,736,302 571,972 9,308,274 14,129,474 607,612 14,737,086 24,045,361 l

2000 8,436,150 490,176 8,926,326 13,684,561 525,816 14,210,377 23,136,703 2001 8,135,998 204,240 8,340,238 13,239,648 219,090 13,458,738 21,798,976

2002 .7,835,845 - 7,835,845 12,737,353 - 12,737,353 20,573,198 l 2003 7,535,693 - 7,535,693 11,976,903 - 11,976,903 19,512,596 2004 7,235,539 - 7,235,539 11,216,454 -

11,216,454 18,451,993 2005 6,935,386 - 6,935,386 10,456,005 - 10,456,005 17,391,391 l 2006 6,540,936 - 6,540,936 9,695,554 - 9,695,554 16,236,490

! 6,027,912 2007 6,027,912 -

8,935,104 - 8,935,104 14,963,016 2008 5,514,888 - 5,514,888 8,174.654 - 8,174,654 13,689,542 2009 5,001,834 - 5,001,834 7,414,154 - 7,414,154 12,415,988 1999-2009 77,936,483 1,266,388 79,202,871 121,659,864 1,352,518 123,012,382 202,215,253 l

l l

l 1

i i

l l

I t

l l

l l