RA-05-015, Decommissioning Funding Status Report - 10 CFR 50.75(f) - 2004

Decommissioning Funding Status Report - 10 CFR 50.75(f) - 2004

ML050960329
Person / Time
Site:	Maine Yankee
Issue date:	03/30/2005
From:	Meisner M Maine Yankee Atomic Power Co
To:	Document Control Desk, NRC/FSME
References
MN-05-014, RA-05-015
Download: ML050960329 (2)

Text

Maine Yankee 321 OLD FERRY RD. . WISCASSET, ME 04578-4922 March 30, 2005 MN-05-014 RA-05-015 UNITED STATES NUCLEAR REGULATORY COMMISSION Attention: Director of Nuclear Reactor Regulation Washington, DC 20555

Reference:

(a) License No. DPR-36 (Docket No. 50-309)

(b) Letter: M. B. Sellman to USNRC; Certifications of Permanent Cessation of Power Operation and Permanent Removal of Fuel From the Reactor; MN-97-89, dated August 7, 1997

Subject:

Decommissioning Funding Status Report - 10 CFR 50.75(f)

Gentlemen:

In reference (b), Maine Yankee informed the USNRC that the Board of Directors of Maine Yankee had decided to permanently cease operations at the Maine Yankee plant and that fuel had been permanently removed from the reactor. In accordance with 10 CFR 50.82(a)(2) the certifications in the letter modified the Maine Yankee license to permanently withdraw Maine Yankee's authority to operate the reactor.

In accordance with the requirements of 10 CFR 50.55(f),' Maine Yankee hereby submits its report on the status of decommissioning funding for the year ending December 31, 2004. The enclosure provides the requested information.

Maine Yankee is nearing completion of decommissioning. As of December 31, 2004,

$405 million has been estimated as the allocation of actual expenditures to date for decommissioning activities as defined by the NRC in 10 CFR 50.2.

If you have any questions please contact me at 207-721-8997.

Ve truly ours, ha J. Meisner Ne~uclear Officer

Enclosure:

Maine Yankee - NRC "Decommissioning Funding Status Report'-

December 31, 2004" c: Mr. J. T. Buckley, NRC NMSS Project Manager, Decommissioning Mr. P. J. Dostie, State of Maine, Division of Health Engineering Mr. S. J. Collins, NRC Regional Administrator, Region 1 Senator Charles Pray, State of Maine, Nuclear Safety Advisor

MAINE YANKEE NRC DECOMMISSIONING FUNDING STATUS REPORT December 31, 2004

1. $357.7 million (Note A) Minimum decommissioning fund estimate pursuant to 10 CFR 50.75 (b) and (c)

2. $56.3 million trust balance (Note B) Decommissioning trust balance accrued as of December 31, 2004

3. Current collection of $26.5 million as Total annual collection estimated including amounts beyond those required in approved by FERC effective 11/1/04 (Note C) I OCFR 50.75 (b) and (c)

4. 3.8% assumed annual escalation of decommissioning costs from 1997 through 2003, and 2.5% in 2004 5.5% assumed annual after-tax earnings on decommissioning funds Other factor rates assumed None

5. Power contracts Maine Yankee is currently collecting decommissioning funds through its power Additional power contracts contracts and amendatory agreements under FERC regulation. The power Amendatory agreements contracts and the amendatory agreements specify the obligations of the purchasers for the costs of Maine Yankee, including decommissioning costs.

Such contracts have been filed with FERC.

6. Modifications to Maine Yankee's current None method of providing financial assurance since the last submitted report

7. Material changes to trust agreements None Notes:

A. Not reduced for actual expenditures and decommissioning work.

B. This balance includes amounts accrued inthe Trust for earnings, and decommissioning costs including site restoration and long term spent fuel storage management incurred through 12131104, as well as decommissioning as defined in 10CFR 50.75. Excluding contract settlement credits, as of December 31, 2004, $554 million has been expended for all decommissioning costs, of which $405 million has been estimated as the allocation of actual expenditures for decommissioning activities, as defined by the NRC expenditures for decommissioning activities, as defined by the NRC in 10CFR 50.2. The Company received credits to the total decommissioning expense of $44 million in 2001 from performance and payment bond settlement proceeds and $14.5 miilion in 2004 from SWEC Estate proceeds.

C. Under the Settlement approved by FERC on September 16, 2004, and effective November 1,2004, Maine Yankee began collecting $26.5 million.

This revised rate assumes an annual escalation rate of 3.06% for 2005 and 3.25% in 2006 through 2023 (the assumed date of fuel being removed from the site), and an annual after-tax earnings rate of 5.5% on decommissioning funds.

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