PLA-6979, NRC Decommissioning Funding Status Report

NRC Decommissioning Funding Status Report

ML13084A376
Person / Time
Site:	Susquehanna
Issue date:	03/25/2013
From:	Helsel J Susquehanna
To:	Document Control Desk, Office of Nuclear Reactor Regulation
References
PLA-6979
Download: ML13084A376 (8)

Text

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Jeffrey M. Helsel PPLSusquehann~LLC \ I I Nuclear Plant Manager 769 Salem Boulevard \ ' I I I

' ~ a I I I ,

Berwick, PA 18603 ~ "

Tel. 570.542.3510 Fax 570.542.1504 * * *'

ppl .~~~:

jmhelsel@pplweb.com

' TM Submitted pursuant to 10 CFR 50.75 U. S. Nuclear Regulatory Commission Attn: Document Control Desk Washington, DC 20555-0001 SUSQUEHANNA STEAM ELECTRIC STATION NRC DECOMMISSIONING FUNDING STATUS REPORT Docket Nos. 50-387 PLA-6979 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 (+/-)(1). contains the PPL decommissioning funding status report at December 31, 2012, submitted biennially to comply with 10 CFR 50.75(+/-)(1).

If you have any questions regarding the decommissioning report, please direct them to Mr. John Tripoli, Manager- Nuclear Regulatory Affairs, at (570) 542-3100.

There are no regulatory commitments identified in this letter. : NRC Decommissioning Funding Status Report December 31, 2012 Copy:

NRC Region I Mr. P. W. Finney, NRC Sr. Resident Inspector .

Mr. J. A. Whited, NRC Project Manager Mr. L. J. Winker, PA DEP/BRP

Attachment 1 to PLA-6979 NRC Decommissioning Funding Status Report December 31,2012

Attachment 1 to PLA-6979 Page 1 of3 NRC Decommissioning Funding Status Report December 31, 2012 PPL Susquehanna, LLC Susquehanna Steam Electric Station PPL Susquehanna, LLC (PPL) hereby submits this Decommissioning Report in compliance with 10 CFR 50.75(+/-)(1) for its 90% share of Susquehanna Steam Electric Station (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-6979 Page 2 of3 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 50.7 5 (b) and (c).

At December 31,2012. $622,444,500 $622,444,500 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, net of taxes paid on realized gains and losses, for items included in 10 CFR 50.75 (b) and (c).

Market Value at December 31, 2012. $336,740,865 $375,050,913

3. Annual amounts remaining to be collected. $0 $0

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 0% 0%

Estimated Real Earnings rate on decommissioning 2.0% 2.0%

funds per 10 CFR 50.75(e)(1)(ii) which are credited up to the time of permanent termination of operations along with a pro-rata credit during the dismantlement period.

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-6979 Page 3 of3 Information is submitted to provide Financial Assurance Unit# 1 Unit #2

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

7. Material changes to trust agreement. None None

Attachment 1 to PLA -6979 Exhibit 1 Page 1 of3 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- 0.65(L) + 0.13(E) + 0.22(B)

Escalation= (.65 x 2.547) + (.13 x 2.704) + (.22 x 14.160)

Escalation= (1.656 + .352 + 3.115) = 5.123 (L)- Labor- (Bureau ofLabor Statistics, Table 6, Compensation, Employment Cost Index, for total compensation, private industry workers, by bargaining status, region and area size)

Northeast region- December 2012 Index Number 117.9 December 2005 Index Number 100.0 December 2005 Base 2.16 L= 117.9 times 2.16 Equals 2.547 100.0 (E) - Energy - (Producer Price Index Commodities, Series ID:

WPU0543 and WPU0573)

E= (.54P + .46F)

E= (.54 X 1.865) + (.46 X 3.690)

E= 1.007 + 1.697 = 2. 704 P - Industrial Power, 500 kW Demand- (Commodity 0543)

December 2012 Index Number 213.0 January 1986 Index Number 114.2 (1)

P= 213.0 equals 1.865 114.2

Attachment 1 to PLA-6979 Exhibit 1 Page 2 of3 F -Light Fuel Oils - (Commodity 0573)

December 2012 Index Number 302.6 January 1986 Index Number 82.0 F= 302.6 equals 3.690 82.0 (B) Waste Burial NUREG- 1307, Rev. 15, "NRC Report on Waste Burial Charges" Table 2.1 Generic LL W Disposal Site, Combination of Compact-Affiliated and Non-Compact Facility 14.160 (1) Represents the national base value ofP at January 1986. The base value ofP is no longer determined on a regional basis.

Attachment 1 to PLA -6979 Exhibit 1 Page 3 of3 PPL Susquehanna, LLC Computation of Minimum Financial Assurance Amount for Decommissioning Susquehanna Steam Electric Station Units 1 and 2 Unit 1 Unit2 Base amount for B WR greater than 3,400 MWt = $135 million The Power Level of Unit 1 = 3,952 MWt and Unit 2 = 3,952 MWt $135,000,000 $135,000,000 Ownership Percentage 90% 90%

Base Amount per Unit $121,500,000 $121,500,000 Escalation Factor 5.123 5.123 Escalated Amount per Unit $622,444,500 $622,444500 Total Escalated Amount (Unit 1 +Unit 2) $1,244,889,000