PLA-7778, NRC Decommissioning Funding Status Report

NRC Decommissioning Funding Status Report

ML19091A145
Person / Time
Site:	Susquehanna
Issue date:	04/01/2019
From:	Cimorelli K Susquehanna, Talen Energy
To:	Document Control Desk, Office of Nuclear Reactor Regulation
References
PLA-7778
Download: ML19091A145 (8)

Text

Kevin Cimorelli Susquehanna Nuclear, LLC Site Vice President 769 Salem Boulevard Berwick, PA 18603 TALEN~

ENERGY Tel. 570.542.3795 Fax 570.542.1504 Kevin .Cimorelli@TalenEnergy.com APR 0 1 2019 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-7778 and 50-388 Pursuant to 10 CFR 50.75(£)(1), Susquehanna Nuclear, LLC (Susquehanna) hereby submits decommissioning information for its ninety percent share of Susquehanna Steam Electric Station (SSES) Unit 1 and Unit 2.

The Attachment to this letter contains the NRC Decommissioning Funding Status Report for Susquehanna at December 31, 2018, submitted biennially to comply with 10 CFR 50.75(f)(l).

If you have any questions regarding the attached report, please contact Ms. Melisa Krick, Manager ofNuclear Regulatory Affairs, at (570) 542-1818.

There are no regulatory commitments identified in this letter.

Sincerely, K. Cimorelli

Attachment:

NRC Decommissioning Funding Status Report December 31, 20 18 Copy: NRC Region I Ms. T. E. Hood, NRC Project Manager Ms. L. H. Micewski, NRC Sr. Resident Inspector Mr. M. Shields, PA DEP/BRP Ms. J. C. Tobin, NRC Project Manager

Attachment to PLA-7778 NRC Decommissioning Funding Status Report December 31, 2018

Attachment 1 to PLA-7778 Page 1 of3 NRC Decommissioning Funding Status Report December 31,2018 Susquehanna Nuclear, LLC Susquehanna Steam Electric Station Susquehanna Nuclear, LLC (Susquehanna) hereby submits this Decommissioning Funding Status Report in compliance with 10 CFR 50.75(f)(1) for its 90% share of Susquehanna Steam Electric Station (SSES) Unit 1 and Unit 2.

Susquehanna 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-7778 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 50.75 (b) and (c).

At December 31,2018. $629,370,000 $629,370,000 Susquehanna Nuclear, LLC's calculation of the NRC minimum formula is reflected in Attachment 1, Exhibit 1

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, 2018. $532,453 ,673 $593,007,779

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

4. The assumptions used regarding escalation in decommissioning costs, 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)(l)(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.

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

Attachment 1 to PLA-7778 Page 3 of3 Information is submitted to provide Financial Assurance Unit# 1 Unit #2

7. Material changes to trust agreement. None None

Attachment 1 to PLA-7778 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 2.948) + (.13 x 2.390) + (.22 x 13.422)

Escalation= (1.916 + .311 + 2.953) = 5.180 (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 2018 Index Number 136.5 December 2005 Index Number 100.0 December 2005 Base 2.16 L= 136.5 X 2.16 2.948 100.0 (E)- Energy- (Producer Price Index Commodities, Series ID: WPU0543 and WPU0573)

E= (.54P + .46F)

E= (.54 X 2.103) + (.46 X 2.727)

E= 1.136 + 1.254 = 2.390 P- Industrial Power, 500 kW Demand- (Commodity 0543)

December 2018 Index Number 240.2 January 1986 Index Number 114.2 (I) p= 240.2 = 2.103 114.2

Attachment 1 to PLA-7778 Exhibit 1 Page 2 of3 F-Light Fuel Oils- (Commodity 0573)

December 2018 Index Number 223.6 January 1986 Index Number 82.0 F= 223.6 = 2.727 82.0 (B) Waste Burial NUREG- 1307, Rev. 17, "NRC Report on Waste Burial Charges" Table 2.1 Generators Located in the Unaffiliated States 13.422 (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-7778 Exhibit 1 Page 3 of3 Susquehanna Nuclear, LLC Computation of Minimum Financial Assurance Amount for Decommissioning Susquehanna Steam Electric Station Units 1 and 2 Unit 1 Unit2 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 5.180 5.180 Escalated Amount per Unit $629,370,000 $629,370,000 Total Escalated Amount (Unit 1 +Unit 2) $1,258,740,000