PLA-5596, Decommissioning Report of Financial Assurance, PLA-5596

Decommissioning Report of Financial Assurance, PLA-5596

ML030930675
Person / Time
Site:	Susquehanna
Issue date:	03/21/2003
From:	Shriver B Susquehanna
To:	Document Control Desk, Office of Nuclear Reactor Regulation
References
PLA-5596
Download: ML030930675 (7)

Text

.I I Bryce L. Shriver PPL Susquehanna, LLC  %;i

• l $* o Senior Vice President and 769 Salem Boulevard Chief Nuclear Officer Berwick, PA 18603 Tel 570 542 3120 Fax 570 542 1504 bIshriver~pplweb corn v TM MAR 2 1 2003 U.S. Nuclear Regulatory Commission Attn: Document Control Desk Mail Station OP1-17 Washington, DC 20555 SUSQUEHANNA STEAM ELECTRIC STATION DECOMMISSIONING REPORT OF FINANCIAL ASSURANCE Docket Nos. 50-387 PLA-5596 and 50-388 In accordance with 10 CFR 50.75(f)(1), attached please find the PPL Susquehanna, LLC decommissioning report of financial assurance for our ninety percent interest in Susquehanna Unit 1 and Unit 2.

If you have any questions regarding our decommissioning report, please direct them to Mr. R. R. Sgarro, Manager - Nuclear Regulatory Affairs, at (610) 774-7552.

Sincerely, B. L. Shriver

Attachment:

Decommissioning Report copy: NRC Region I Mr. R. V. Guzman, NRC Project Manager Mr. S. Hansell, NRC Sr. Resident Inspector Mr. R. Janati, DEP/BRP 1xc>oI WS~t t;ie!

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Attachment 1 to PLA-5596 Page 1 of 2 NRC Decommissioning Funding Status Report December 31, 2002 PPL Susquehanna, LLC Susquehanna Steam Electric Station PPL Susquehanna, LLC hereby submits this Decommissioning Report in compliance with 10 CFR 50.75(f)(1) for its 90% share of Susquehanna Unit 1 and Unit 2.

PPL Susquehanna has analyzed its current funding levels and planned contributions for both Unit 1 and Unit 2 and concluded that these funding levels and planned contributions will be sufficient to pay for the decommissioning costs of each unit at the time permanent termination of operations is expected for each unit, when earnings and inflation are taken into account, if at that time PPL Susquehanna elects to pursue a SAFSTOR option. In conducting this analysis, PPL Susquehanna used a 2002 Site Specific Cost Estimate developed by TLG Services, Inc. The analysis and cost estimates account for estimated costs throughout the periods of safe storage, final dismantlement and license termination.

This analysis is confidential and proprietary to PPL Susquehanna, but can be made available for inspection upon request.

Information is submitted to provide Financial Assurance Unit # 1 Unit #2

1. The minimum amount of decommissioning funds estimated to be required pursuant to 10CFR50.75 (b) and (c).

At December 31, 2002 $405,567,000 $405,567,000 PPL Susquehanna LLC's calculation of the NRC minimum formula is reflected in Exhibit 1.

2. The Amount accumulated at the end of the calendar year preceding the date of the report for items included in 10 CFR 50.75 (b) and (c).

Market Value at Dec. 31, 2002 $141,978,996 $145,081,301

3. See Exhibit 2 for a schedule of the annual amounts remaining to be collected.

Attachment 1 to PLA-5596 Page 2 of 2

4. The assumptions used regarding escalation in decommissioning cost, rates of earnings on decommissioning funds, and rates of other factors used in funding projections.

Estimated Inflation rate for decommissioning costs 4% 4%

Estimated Earnings rates on decommissioning funds 7.5% 7.5%

Rates of other factors used in funding projections None None The Inflation and Earnings Rate are based on an order entered by the Pennsylvania Public Utility Commission (Pa. PUC) on September 27, 1995 at Docket No. R-00943271.

5. Any power sale contracts upon which licensee is None None relying to provide financial assurance.

6. Modifications to licensee's method of providing None None financial assurance since previous report.

7. Material changes to trust agreement. None None

Exhibit 1 Page 1 of3 Calculation of Escalation Factors Used in Computation of Minimum Financial Assurance Amount for Decommissioning 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 1.912) + (.13 x 1.123) + (.22 x 8.860)

Escalation = (1.24280 + 0.14599 + 1.94920) = 3.33800 (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 - August 2002 Index Number 249.6 January 1986 Index Number 130.5 L= 249.6 equals 1.912 130.5 (E) - Energy - (Producer Price Index Commodities, Series ID: WPU0543 and WPU0573)

E= (.54P + .46F)

E= (.54 x 1.270) + (.46 x 0.95)

E= 0.68580 + 0.43700 = 1.123 P - Industrial Power, 500 kW demand - (Commodity 0543)

August 2002 Index Number 145.0 January 1986 IndexNumber 114.2 (1)

P 145.0 equals 1.270 114.2

Exhibit I Page 2 of 3 F - Light fuel oils - (Commodity 0573)

August 2002 Index Number 77.9 January 1986 Index Number 82.0 F= 77.9 equals 0.95 82.0 (B) Waste Burial NUREG - 1307, Rev. 10, "NRC Report on Waste Burial Charges" Table 2.1 South Carolina Factor 8.860 (1) Represents the national base value of P at January 1986. The base value of P is no longer determined on a regional basis.

Exhibit I Page 3 of 3 PPL Susquehanna, LLC 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 = $135 million The Power Level of Unit 1 and Unit 2 are = 3,489 MWt 135,000,000 135,000,000 Ownership percentage 90% 90%

Base amount per unit 121,500,000 121,500,000 Escalation Factor 3.338 3.338 Escalated Amount per Unit 405,567,000 405,567,000 Total Escalated Amount (Unit 1 + Unit 2) 811,134,000

Exhibit 2 Page 1 of 1 PPL Nuclear Decommissioning Trust Expected Contributions Unit 1 Unit 2 Grand Total 2003 $8,776,504 $13,009,304 $21,785,808 2004 7,566,986 11,216,454 18,783,440 2005 7,053,960 10,456,005 17,509,965 2006 6,540,936 9,695,554 16,236,490 2007 6,027,912 8,935,104 14,963,016 2008 5,514,888 8,174,654 13,689,542 2009 5,001,834 7,414,154 12,415,988 2003-2009 $46,483,020 $68,901,229 $115,384,249