PLA-6491, Attachment 2 to PLA-6491, Affidavit and Site-Specific Decommissioning Cost Analysis Schedules

Attachment 2 to PLA-6491, Affidavit and Site-Specific Decommissioning Cost Analysis Schedules

ML090920602
Person / Time
Site:	Susquehanna
Issue date:	03/26/2009
From:	Susquehanna
To:	Office of Nuclear Reactor Regulation
References
PLA-6491
Download: ML090920602 (16)

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Proprietary Information Attachment 2 to PLA-6491 Affidavit and Site - Specific Decommissioning Cost Analysis Schedules

AFFIDAVIT OF WILLIAM H. SPENCE I, William H. Spence, President, PPL Susquehanna, LLC (PPL), do hereby affirm and state:

1. I am an officer of PPL Susquehanna, LLC, 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 of information from disclosure.

2. PPL is providing information which constitutes proprietary financial information that should be held in confidence by the NRC pursuant to the policy reflected in 10 CFR §§ 2.390(a)(4) and 9.17(a)(4), because:

i. This information is and has been held in confidence by PPL.

ii. This information is of a type that is held in confidence by PPL, and there is a rational basis for doing so because the information contains sensitive financial information.

iii. This information is being transmitted to the NRC in confidence.

iv. This information is not available in public sources and could not be gathered readily from other publicly available information.

v. Public disclosure of this information would create substantial harm to the competitive position of PPL by disclosing PPL's internal cost projections to other parties whose commercial interests may be adverse to those of PPL.

3. Accordingly, PPL requests that the information in Attachment 2 be withheld from public disclosure pursuant to the policy reflected in 10 CFR §§ 2.390(a)(4) and 9.17(a)(4).

PPL Susquehanna, L OMMONWEALTH OF PENNSYLVANIA SEAL William H. Spence NOTARIAL DIANE M.KOCH, NOTARY PUBLIC President CITY OF ALLENTOWN, LEHIGH COUNlY MY COMMISSION EXPIRES SEPT. 29, 2011 Subscribed and sworn before me, a Notary Public in and for the Co.monwealth of Pennsylvania thi,9, day ofO n ,2009.

Withold from public disclosure under Attachment 2 to PLA-6491 10 CFR 2.390 Page 1 of 13 Company Confidential / Proprietary Site - Specific Decommissioning Cost Analysis PPL Susquehanna, LLC Susquehanna Steam Electric Station This attachment sets forth PPL's analysis of decommissioning for each unit under the SAFSTOR method of decommissioning. The analysis begins with the cost for license termination, in 2002 dollars, from the 2002 Site Specific Decommissioning Cost Analysis. An annual inflation rate of 4% is assumed to develop the cost in 2008 dollars.

The analysis projects the growth of the assets in each fund starting with the assets at December 31, 2008 and includes future contributions, real earnings at 3.5% and disbursements in 2008 dollars developed from the projected disbursements in the site-specific study. The disbursements are based on Tables 3.3B and 3.4B previously provided as proprietary information in Reference 1.

The summary at the end of the analysis starts with the assets at December 31, 2008 and aggregates future contributions, disbursements in 2008 dollars, real earnings and the assets in the fund after decommissioning is completed. This demonstrates PPL's ability to pay for all required decommissioning expenses under the SAFSTOR method of decommissioning.

Withold from public disclosure under Attachment 2 to PLA-6491 10 CFR 2.390 Page 2 of 13 Company Confidential / Proprietary Susquehanna SES Unit I SAFSTOR Method of Decommissioning Escalation

($ in thousands) from 2002 2002 2003 2004 2005 2006 2007 2008 to 2008 License Termination Cost $502,908 Table 3.3B 2002 Site-Specific Decommissioning Cost Analysis Ownership % 90%

PPL Cost $452,617 470,722 489,551 509,133 529,498 550,678 $572,705 26.53%

Inflation 4%

Assets 3.5% Assets Beginning Real End Year of Year Contributions Disbursement s Earnings of Year 2009 $211,550 $5,442 - $ 7,499 $224,491 2010 224,491 - 7,857 232,349 2011 232,349 - 8,132 240,481 2012 240,481 - 8,417 248,898 2013 248,898 - 8,711 257,609 2014 257,609 - 9,016 266,625 2015 266,625 - 9,332 275,957 2016 275,957 - 9,659 285,616 2017 285,616 - 9,997 295,612 2018 295,612 - 10,346 305,959 2019 305,959 - 10,709 316,667 2020 316,667 - 11,083 327,751

Withold from public disclosure under Attachment 2 to PLA-6491 10 CFR 2.390 Page 3 of 13 Company Confidential / Proprietary Escalation

($ in thousands) from 2002 2002 2003 2004 2005 2006 2007 2008 to 2008 License Termination Cost $502,908 Table 3.3B 2002 Site-Specific Decommissioning Cost Analysis Ownership % 90%

PPL Cost $452,617 470,722 489,551 509,133 529,498 550,678 $572,705 26.53%

Inflation 4%

Assets 3.5% Assets Beginning Real End Year of Year Contributions Disbursements Earninas of Year 2021 327,751 11,471 339,222 1 2022 339,222 (17,106) 12,022 334,139 2 2023 334,139 (58,974) 12,211 287,375 3 2024 287,375 (11,627) 10,160 285,908 4 2025 285,908 (8,256) 10,079 287,731 5 2026 287,731 (8,256) 10,143 289,618 6 2027 289,618 (8,256) 10,209 291,570 7 2028 291,570 (8,279) 10,277 293,569 8 2029 293,569 (8,256) 10,347 295,660 9 2030 295,660 (5,898) 10,400 300,161 10 2031 300,161 (3,164) 10,533 307,531 11 2032 307,531 (3,166) 10,791 315,157 12 2033 315,157 (3,166) 11,058 323,049 13 2034 323,049 (3,166) 11,334 331,218

Withold from public disclosure under Attachment 2 to PLA-6491 10 CFR 2.390 Page 4 of 13 Company Confidential / Proprietary Escalation

($ in thousands) from 2002 2002 2003 2004 2005 2006 2007 2008 to 2008 License Termination Cost $502,908 Table 3.3B 2002 Site-Specific Decommissioning Cost Analysis Ownership % 90%

PPL Cost $452,617 470,722 489,551 509,133 529,498 550,678 $572,705 26.53%

Inflation 4%

Assets 3.5% Assets Beginning Real End Year of Year Contributions Disbursements Earnings of Year 14 2035 331,218 (3,166) 11,620 339,672 15 2036 339,672 (3,166) 11,916 348,423 16 2037 348,423 (3,166) 12,222 357,479 17 2038 357,479 (3,166) 12,539 366,853 18 2039 366,853 (3,166) 12,868 376,555 19 2040 376,555 (3,166) 13,207 386,596 20 2041 386,596 (3,166) 13,559 396,989 21 2042 396,989 (3,166) 13,922 407,745 22 2043 407,745 (3,166) 14,299 418,878 23 2044 418,878 (3,166) 14,688 430,401 24 2045 430,401 (3,166) 15,092 442,327 25 2046 442,327 (3,166) 15,509 454,670 26 2047 454,670 (3,166) 15,941 467,445 27 2048 467,445 (3,166) 16,388 480,668

Withold from public disclosure under Attachment 2 to PLA-6491 10 CFR 2.390 Page 5 of 13 Company Confidential / Proprietary Escalation

($ in thousands) from 2002 2002 2003 2004 2005 2006 2007 2008 to 2008 License Termination Cost $502,908 Table 3.3B 2002 Site-Specific Decommissioning Cost Analysis Ownership % 90%

PPL Cost $452,617 470,722 489,551 509,133 529,498 550,678 $572,705 26.53%

Inflation 4%

Assets 3.5% Assets Beginning Real End Year of Year Contributions Disbursements Earnings of Year 28 2049 480,668 - (3,166) 16,851 494,353 29 2050 494,353 - (3,166) 17,330 508,517 30 2051 508,517 - (3,166) 17,826 523,177 31 2052 523,177 - (3,166) 18,339 538,350 32 2053 538,350 - (3,166) 18,870 554,054 33 2054 554,054 - (3,166) 19,420 570,308 34 2055 570,308 - (3,166) 19,988 587,131 35 2056 587,131 - (3,166) 20,577 604,542 36 2057 604,542 - (3,166) 21,187 622,563 37 2058 622,563 - (3,166) 21,817 641,215 38 2059 641,215 - (3,166) 22,470 660,519 39 2060 660,519 - (3,166) 23,146 680,499 40 2061 680,499 - (3,166) 23,845 701,178 41 2062 701,178 - (3,166) 24,569 722,581

Withold from public disclosure under Attachment 2 to PLA-6491 10 CFR 2.390 Page 6 of 13 Company Confidential / Proprietary Escalation

($ in thousands) from 2002 2002 2003 2004 2005 2006 2007 2008 to 2008 License Termination Cost $502,908 Table 3.3B 2002 Site-Specific Decommissioning Cost Analysis Ownership % 90%

PPL Cost $452,617 470,722 489,551 509,133 529,498 550,678 $572,705 26.53%

Inflation 4%

Assets 3.5% Assets Beginning Real End Year of Year Contributions Disbursements Earnings of Year 42 2063 722,581 (3,166) 25,318 744,734 43 2064 744,734 (3,165) 26,093 767,662 44 2065 767,662 (3,165) 26,896 791,394 45 2066 791,394 (3,165) 27,726 815,955 46 2067 815,955 (3,165) 28,586 841,377 47 2068 841,377 (3,165) 29,476 867,688 48 2069 867,688 (3,165) 30,397 894,920 49 2070 894,920 (3,165) 31,350 923,105 50 2071 923,105 (3,165) 32,336 952,277 51 2072 952,277 (3,165) 33,357 982,470 52 2073 982,470 (3,166) 34,414 1,013,718 53 2074 1,013,718 (3,164) 35,508 1,046,062 54 2075 1,046,062 (3,164) 36,640 1,079,538 55 2076 1,079,538 (21,778) 37,974 1,095,735

Withold from public disclosure under Attachment 2 to PLA-6491 10 CFR 2.390 Page 7 of 13 Company Confidential / Proprietary Escalation

($ in thousands) from 2002 2002 2003 2004 2005 2006 2007 2008 to 2008 License Termination Cost $502,908 Table 3.3B 2002 Site-Specific Decommissioning Cost Analysis Ownership % 90%

PPL Cost $452,617 470,722 489,551 509,133 529,498 550,678 $572,705 26.53%

Inflation 4%

Assets 3.5% Assets Beginning Real End Year of Year Contributions Disbursements Earnings of Year 56 2077 1,095,735 - (58,174) 38,860 1,076,421 57 2078 1,076,421 - (130,652) 38,818 984,587 58 2079 984,587 - (45,754) 34,861 973,693 59 2080 973,693 - (28,507) 34,329 979,515 60 2081 979,515 - (10,486) 34,375 1,003,404 Summary $211,550 $5,442 $(572,705) $1,359,117 $1,003,404

Withold from public disclosure under Attachment 2 to PLA-6491 10 CFR 2.390 Page 8 of 13 Company Confidential / Proprietary Susquehanna SES Unit 2 SAFSTOR Method of Decommissioning Escalation

($ in thousands) from 2002 2002 2003 2004 2005 2006 2007 2008 to 2008 License Termination Cost $615,651 Table 3.4B 2002 Site-Specific Decommissioning Cost Analysis Ownership % 90%

PPL Cost $554,086 576,249 599,299 623,271 658,202 674,130 $701,095 26.53%

Inflation 4%

Assets 3.5% Assets Beginning Real End Year of Year Contributions Disbursements Earnings of Year 2009 $234,386 $ 8,066 $ 8,345 $250,797 2010 250,797 8,778 259,575 2011 259,575 9,085 268,660 2012 268,660 9,403 278,063 2013 278,063 9,732 287,795 2014 287,795 10,073 297,868 2015 297,868 10,425 308,293 2016 308,293 10,790 319,083 2017 319,083 11,168 330,251 2018 330,251 11,559 341,810 2019 341,810 11,963 353,773 2020 353,773 12,382 366,156

Withold from public disclosure under Attachment 2 to PLA-6491 10 CFR 2.390 Page 9 of 13 Company Confidential / Proprietary Escalation

($ in thousands) from 2002 2002 2003 2004 2005 2006 2007 2008 to 2008 License Termination Cost $615,651 Table 3.4B 2002 Site-Specific Decommissioning Cost Analysis Ownership % 90%

PPL Cost $554,086 576,249 599,299 623,271 658,202 674,130 $701,095 26.53%

Inflation 4%

Assets 3.5% Assets Beginning Real End Year of Year Contributions Disbursements Earnings of Year 2021 366,156 12,815 378,971 2022 378,971 13,264 392,235 2023 392,235 13,728 405,963 1 2024 405,963 (28,726) 14,460 391,697 2 2025 391,697 (49,153) 14,139 356,683 3 2026 356,683 (11,529) 12,585 357,739 4 2027 357,739 (11,529) 12,622 358,832 5 2028 358,832 (11,561) 12,660 359,931 6 2029 359,931 (11,529) 12,698 361,100 7 2030 361,100 (11,529) 12,739 362,311 8 2031 362,311 (11,529) 12,782 363,563 9 2032 363,563 (5,868) 12,776 370,471 10 2033 370,471 (4,239) 13,004 379,236

Withold from public disclosure under Attachment 2 to PLA-6491 10 CFR 2.390 Page 10 of 13 Company Confidential / Proprietary I ý Escalation

($ in thousands) from 2002 2002 2003 2004 2005 2006 2007 2008 to 2008 License Termination Cost $615,651 Table 3.4B 2002 Site-Specific Decommissioning Cost Analysis Ownership % 90%

PPL Cost $554,086 576,249 599,299 623,271 658,202 674,130 $701,095 26.53%

Inflation 4%

Assets 3.5% Assets Beginning Real End Year of Year Contributions Disbursements Earninas of Year 11 2034 379,236 (4,242) 13,310 388,305 12 2035 388,305 (4,242) 13,628 397,691 13 2036 397,691 (4,242) 13,956 407,405 14 2037 407,405 (4,242) 14,296 417,459 15 2038 417,459 (4,242) 14,648 427,865 16 2039 427,865 (4,242) 15,012 438,636 17 2040 438,636 (4,242) 15,389 449,783 18 2041 449,783 (4,242) 15,780 461,321 19 2042 461,321 (4,242) 16,183 473,262 20 2043 473,262 (4,242) 16,601 485,621 21 2044 485,621 (4,242) 17,034 498,413 22 2045 498,413 (4,242) 17,482 511,653 23 2046 511,653 (4,242) 17,945 525,356

Withold from public disclosure under Attachment 2 to PLA-649 1 10 CFR 2.390 Page 11 of 13 Company Confidential / Proprietary Escalation

($ in thousands) from 2002 2002 2003 2004 2005 2006 2007 2008 to 2008 License Termination Cost $615,651 Table 3.4B 2002 Site-Specific Decommissioning Cost Analysis Ownership % 90%

PPL Cost $554,086 576,249 599,299 623,271 658,202 674,130 $701,095 26.53%

Inflation 4%

Assets 3.5% Assets Beginning Real End Year of Year Contributions Disbursements Earnings of Year 24 2047 525,356 (4,242) 18,425 539,538 25 2048 539,538 (4,242) 18,921 554,217 26 2049 554,217 (4,242) 19,435 569,410 27 2050 569,410 (4,242) 19,966 585,135 28 2051 585,135 (4,242) 20,517 601,410 29 2052 601,410 (4,242) 21,086 618,254 30 2053 618,254 (4,242) 21,676 635,688 31 2054 635,688 (4,242) 22,286 653,732 32 2055 653,732 (4,242) 22,918 672,408 33 2056 672,408 (4,242) 23,571 691,737 34 2057 691,737 (4,242) 24,248 711,743 35 2058 711,743 (4,242) 24,948 732,450 36 2059 732,450 (4,242) 25,673 753,880

Withold from public disclosure under Attachment 2 to PLA-649 1 10 CFR 2.390 Page 12 of 13 Company Confidential / Proprietary Escalation

($ in thousands) , from 2002 2002 2003 2004 2005 2006 2007 2008 to 2008 License Termination Cost $615,651 Table 3.4B 2002 Site-Specific Decommissioning Cost Analysis Ownership % 90%

PPL Cost $554,086 576,249 599,299 623,271 658,202 674,130 $701,095 26.53%

Inflation 4%

Assets 3.5% Assets Beginning Real End Year of Year Contributions Disbursements Earnings of Year 37 2060 753,880 - (4,242) 26,423 776,061 38 2061 776,061 - (4,242) 27,199 799,019 39 2062 799,019 - (4,242) 28,003 822,779 40 2063 822,779 - (4,242) 28,834 847,372 41 2064 847,372 - (4,241) 29,695 872,826 42 2065 872,826 - (4,241) 30,586 899,171 43 2066 899,171 - (4,241) 31,508 926,439 44 2067 926,439 - (4,241) 32,462 954,660 45 2068 954,660 - (4,241) 33,450 983,870 46 2069 983,870 - (4,241) 34,473 1,014,101 47 2070 1,014,101 - (4,241) 35,531 1,045,391 48 2071 1,045,391 - (4,241) 36,626 1,077,776 49 2072 1,077,776 - (4,241) 37,759 1,111,294

Withold from public disclosure under Attachment 2 to PLA-6491 10 CFR 2.390 Page 13 of 13 Company Confidential / Proprietary Escalation

($ in thousands) from 2002 2002 2003 2004 2005 2006 2007 2008 to 2008 License Termination Cost $615,651 Table 3.4B 2002 Site-Specific Decommissioning Cost Analysis Ownership % 90%

PPL Cost $554,086 576,249 599,299 623,271 658,202 674,130 $701,095 26.53%

Inflation 4%

Assets 3.5% Assets Beginning Real End Year of Year Contributions Disbursements Earnings of Year 50 2073 1,111,294 (4,241) 38,932 1,145,986 51 2074 1,145,986 (4,241) 40,147 1,181,892 52 2075 1,181,892 (4,239) 41,403 1,219,057 53 2076 1,219,057 (4,250) 42,704 1,257,511 54 2077 1,257,511 (19,162) 44,181 1,282,529 55 2078 1,282,529 (46,038) 45,291 1,281,782 56 2079 1,281,782 (140,660) 46,093 1,187,216 57 2080 1,187,216 (75,200) 42,211 1,154,227 58 2081 1,154,227 (63,753) 40,956 1,131,430 59 2082 1,131,430 (15,787) 39,738 1,155,381 60 2083 1,155,381 (906) 40,446 1,194,921 Summary $234,386 $8,066 $(701,095) $1,653,564 $1,194,921