PLA-6711, NRC Decommissioning Funding Status Report, PLA-6711

NRC Decommissioning Funding Status Report, PLA-6711

ML110900402
Person / Time
Site:	Susquehanna
Issue date:	03/31/2011
From:	Rausch T Susquehanna
To:	Document Control Desk, Office of Nuclear Reactor Regulation
References
PLA-6711
Download: ML110900402 (8)

Text

Timothy S. Rausch PPL Susquehanna, LLC Sr. Vice President & Chief Nuclear Officer 769 Salem Boulevard Bewick, PA 18603 Tel. 570.542.3445 Fax 570.542.1504 tsrausch@pplweb.com WAR 3 12011 I Submitted pursuant to 10 CFR 50.75 U. S. Nuclear Regulatory Commission Document Control Desk Mail Stop OP 1- 17 Washington, DC 20555 SUSQUEHANNA STEAM ELECTRIC STATION NRC DECOMMISSIONING FUNDING STATUS REPORT Docket Nos. 50-387 PLA-6711 and 50-388 This letter provides decommissioning information for the PPL Susquehanna, LLC (PPL) ninety percent interest in Susquehanna Unit 1 and Unit 2 (SSES) as required by 10 CFR 50.75 "Reporting and Recordkeeping for Decommissioning Planning,"

section (f)(l). contains the PPL decommissioning funding status report at December 3 1,2010, submitted biennially to comply with 10 CFR 50.75(f)(1).

If you have any questions regarding the decommissioning report, please direct them to Mr. D. L. Filchner - Nuclear Regulatory Affairs, at (6 10) 774-78 19.

Sincerely, : NRC Decommissioning Funding Status Report December 3 1,2010 Copy: NRC Region I Mr. P. W. Finney, NRC Sr. Resident Inspector Mr. R. Janati, DEPIBRP Mr. B. K. Vaidya, NRC Project Manager

Attachment 1 to PLA-6711 NRC Decommissioning Funding Status Report December 31,2010

Attachment 1 to PLA-67 11 Page 1 of 3 NRC Decommissioning Funding Status Report December 31,2010 PPL Susquehanna, LLC Susquehanna Steam Electric Station PPL Susquehanna, LLC (PPL) hereby submits this Decommissioning Report in compliance with 10 CFR 50.75(f)(1) for its 90% share of Susquehanna (SSES) Unit 1 and Unit 2.

PPL has analyzed its current funding levels for both SSES units and concluded that these funding levels will be sufficient to pay for the decommissioning costs of each unit at the time permanent termination of operations is expected for each unit, consistent with the NRC prescribed minimum set forth in 10 CFR 50.75(c).

Attachment 1 to PLA-6711 Page 2 of 3 Information is submitted to provide Financial Assurance Unit # 1 Unit #2

1. The minimum amount of decommissioning funds estimated to be required pursuant to 10 CFR 50.75 (b) and (c).

At December 3 1,20 10.

PPL Susquehanna, LLC's calculation of the NRC minimum formula is reflected in Exhibit 1 (behind this Attachment).

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 December 3 1,2010.

3. Annual amounts remaining to be collected.

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 Estimated Real Earnings rate on decommissioning funds per 10 CFR 50.75(e)(l)(ii)

Rates of other factors used in funding projections None None

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

Attachment 1 to PLA-6711 Page 3 of 3 Information is submitted to provide Financial Assurance Unit # 1 Unit #2

6. Modifications to licensee's method of providing financial assurance since previous report.

The previous report credited collections and utilized inflation and earnings rates based on an order entered by the Pennsylvania Public Utility Commission on September 27, 1995 at Docket No.

R-0094327 1. The annual collections permitted under this order ceased at the end of 2009.

Therefore, the current method no longer credits collections and now utilizes the default rate of earnings as prescribed by 10 CFR 50.75(e)(l)(ii) for a licensee not under the jurisdiction of a rate-making authority. In addition, the previous report provided an analysis crediting earnings through a SAFSTOR period. This analysis is no longer necessary, as the current funding is sufficient for immediate DECON.

7. Material changes to trust agreement. None None

Attachment 1 to PLA-67 11 Exhibit 1 Page 1 of 3 Calculation of Escalation Factors Used in Computation of Minimum Financial Assurance Amount for Decommissioning Susquehanna Steam Electric Station Units land 2 Boiling Water Reactor (BWR)

Escalation Factor Formula -

Escalation = (.65 x 2.454) + (.I3 x 2.319) + (.22 x 12.540)

Escalation = (1.595 + 0.301 + 2.759) = 4.655 (L) - Labor - (Bureau of Labor Statistics, Table 6, Compensation, Employment Cost Index, for total compensation, private industry workers, by bargaining status, region and area size)

Northeast region - December 20 10 Index Number December 2005 Index Number December 2005 Base times Equals (E) - Energy - (Producer Price Index Commodities, Series ID:

WPU0543 and WPU0573)

P - Industrial Power, 500 kW Demand - (Commodity 0543)

December 2010 Index Number 191.3 January 1986 Index Number 114.2 (1) equals

Attachment 1 to PLA-67 11 Exhibit 1 Page 2 of 3 F - Light Fuel Oils - (Commodity 0573)

December 20 10 Index Number January 1986 Index Number 252.1 equals 82.0 (B) Waste Burial NUREG - 1307, Rev. 14, "NRC Report on Waste Burial Charges" Table 2.1 Generic LLW Direct Disposal with Vendors 12.540 (1) Represents the national base value of P at January 1986. The base value of P is no longer determined on a regional basis.

Attachment 1 to PLA-6711 Exhibit 1 Page 3 of 3 PPL Susquehanna, LLC Computation of Minimum Financial Assurance Amount for Decommissioning Susquehanna Steam Electric Station Units 1 and 2 Unit 1 Unit 2 Base amount for BWR greater than 3,400 MWt = $135 million The Power Level of Unit 1 = 3,952 MWt and Unit 2 = 3,733 MWt Ownership Percentage Base Amount per Unit Escalation Factor Escalated Amount per Unit Total Escalated Amount (Unit 1 + Unit 2)