PLA-7293, NRC Decommissioning Funding Status Report

NRC Decommissioning Funding Status Report

ML15091A313
Person / Time
Site:	Susquehanna
Issue date:	03/20/2015
From:	Rausch T Susquehanna
To:	Document Control Desk, Office of Nuclear Reactor Regulation
References
PLA-7293
Download: ML15091A313 (8)

Text

Timothy S. Rausch PPL Susquehanna, LLC Senior Vice President & Chief Nuclear Officer 769 Salem Boulevard Now-Berwick, PA 18603 Tel. 570.542.3445 Fax 570.542.1504 tsrausch@pplweb.com 444..

MAR 20 2015 U. S. Nuclear Regulatory Commission 10 CFR 50.75 Attn: Document Control Desk Washington, DC 20555-0001 SUSQUEHANNA STEAM ELECTRIC STATION NRC DECOMMISSIONING FUNDING STATUS REPORT Docket Nos. 50-387 PLA-7293 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)(1).

The Attachment to this letter contains the PPL decommissioning funding status report at December 31, 2014, submitted biennially to comply with 10 CFR 50.75(f)(1).

If you have any questions regarding the decommissioning report, please contact Mr. Jeffery N. Grisewood, Manager - Nuclear Regulatory Affairs at (570) 542-1330.

There are no regulatory commitments identified in this letter.

Sincerely, Timothy S. Rausch Senior Vice President and Chief Nuclear Officer Copy: NRC Region I Mr. J. E. Greives, NRC Sr. Resident Inspector Mr. J. A. Whited, NRC Project Manager Mr. L. J. Winker, PA DEP/BRP N oo(

Attachment to PLA-7293 NRC Decommissioning Funding Status Report December 31, 2014

Attachment to PLA-7293 Page 1 of3 NRC Decommissioning Funding Status Report December 31, 2014 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 to PLA-7293 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 31, 2014. $624,267,000 $624,267,000 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, 2014. $449,449,677 $500,568,824

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 to PLA-7293 Page 3 of 3 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 to PLA-7293 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 - 0.65(L) + 0.13(E) + 0.22(B)

Escalation = (.65 x 2.661) + (.13 x 2.255) + (.22 x 14.160)

Escalation = (1.730 + .293 + 3.115) = 5.138 (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 2014 Index Number 123.2 December 2005 Index Number 100.0 December 2005 Base 2.16 L 123.2 times 2.16 Equals 2.661 100.0 (E) - Energy - (Producer Price Index Commodities, Series ID:

WPU0543 and WPU0573)

E= (.54P + .46F)

E= (.54 x 1.880) + (.46 x 2.695)

E= 1.015 + 1.240 = 2.255 P - Industrial Power, 500 kW Demand - (Commodity 0543)

December 2014 Index Number 214.7 January 1986 Index Number 114.2 (1)

P= 214.7 equals 1.880 114.2

Attachment to PLA-7293 Exhibit 1 Page 2 of 3 F - Light Fuel Oils - (Commodity 0573)

December 2014 Index Number 221.0 January 1986 Index Number 82.0 F 221.0 equals 2.695 82.0 (B) Waste Burial NUREG - 1307, Rev. 15, "NRC Report on Waste Burial Charges" Table 2.1 Generic LLW Disposal Site, Combination of Compact-Affiliated and Non-Compact Facility 14.160 (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-7293 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 I 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 = 3,952 MWt $135,000,000 $135,000,000 Ownership Percentage 90% 90%

Base Amount per Unit $121,500,000 $121,500,000 Escalation Factor 5.138 5.138 Escalated Amount per Unit $624,267,000 $624,267,000 Total Escalated Amount (Unit 1 + Unit 2) $1,248,534,000