U-603227, Provides Updated Rept on Status of Decommissioning Funding for Plant.Updated Rept Provides Min Decommissioning Fund Estimate,Per 10CFR50.75(b) & (C) Utilizing NUREG-1307,Rev 8 Methodology

Provides Updated Rept on Status of Decommissioning Funding for Plant.Updated Rept Provides Min Decommissioning Fund Estimate,Per 10CFR50.75(b) & (C) Utilizing NUREG-1307,Rev 8 Methodology

ML20209A755
Person / Time
Site:	Clinton
Issue date:	06/24/1999
From:	Sipek J ILLINOIS POWER CO.
To:	NRC OFFICE OF INFORMATION RESOURCES MANAGEMENT (IRM)
References
RTR-NUREG-1307 U-603227, NUDOCS 9907060137
Download: ML20209A755 (4)

Text

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. Illinois Power Company Clinton Power Station P O Box 678 Clinton. IL 61727 Tel 217 935-8881 Joseph V. Sipek P&MR An @non Compamj o'<ector - ceos'"9 8G.180 June 24, 1999 Docket No. 50-461 10CFR50.75 Document Control Desk U. S. Nuclear Regulatory Commission Washington, D.C. 20555

Subject:

Status ofIllinois Power Decommissioning Funding for the Clinton Power Station

Dear Madam or Sir:

The purpose of this letter is to provide an updated Illinois Power (IP) report on the status ofits decommissioning funding for the Clinton Power Station (CPS). Via letter U-603186 dated March 29,1999, IP provided the original report on the status of decommissioning funding required pursuant to 10CFR50.75(f). As stated in letter U-603186, the IP CPS Site Specific Decommissioning Study assumes that, following site remediation and license termination, the balance of plant systems and structures and other CPS site structures are removed utilizing conventional demolition techniques. The CPS Site Specific Decommissioning Study also assumes that spent fuel is transferred to an Independent Spent Fuel Storage Installation (ISFSI) constructed on the CPS site for storage until the fuel assemblies are transferred to a Department of Energy facility for final storage. At the conclusion of the spent fuel transfer process, the CPS ISFSI will be decommissioned. The total estimate for CPS decommissioning per the CPS Site Specific Decommissioning Study is $570,426,600. Approximately 38.8% of this amount is for items not included in the estimate pursuant to 10CFR50.75(b) and (c).

IP letter U-603186 noted that $470,601,945 was the minimum decommissioning ,!

fund estimate, pursuant to 10CFR50.75(b) and (c). This value was obtained utilizing information in the CPS Site Specific Decommissioning Study versus the methodology provided in NUREG-1307," Report on Waste Surial Charges," Revision 8. This updated report provides the minimum deconunissioning fund estimate, pursuant to 10CFR50.75(b) and (c) utilizing the NUREG-1307, Revision 8, methodology. This information is provided in the attachment to this report.

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9907060137 PDR 990624 i ADOCK 05000461 ?

PDR 3

. U-603227 Page 2 If you have any questions, please contact Mr. M. A. Reandeau, CPS Supervisor-Licensing Administration, at (217) 935-8881, extension 3448.

Sincerely yours, O.

1l ti t 1 ose h V l irecto nsing MAR /krk I, Attachments cc: NRC Clinton Licensing Project Manager NRC Resident Office, V-690 Regional Administrator, Region III, USNRC Illinois Department of Nuclear Safety R. S. Wood, USNRC, Nuclear Reactor Regulation  ;

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, Attachment to U 603227 Page 1 of 2 Blinois Power Deconnaissioning Funding Status Report for the Clinton Power Station

1. The minimum decommissioning fund estimate, pursuant to 10 CFR 50.75 (b) and (c)' ..

$347,884,435

2. Total amount accumulated at the end of the calendar year preceding the date of this report.

$ 84,061,130

3. A schedule of the annual amounts remaining to be collected.

amount remaining $153,752,135

1. years to collect 27.75

4. The assumptions used regarding escalation in decommissioning cost, rates of earnings on decommissioning funds, and rates of other factors used in funding projections.

A two percent (2%) escalation factor was utilized to estimate the total future estimated cost of decommissioning Clinton Power Station. Additionally, a seven percent (7%) after-tax rate of return is assumed to be earned in the decommissioning external trust fund. These earnings are expected to account for the difference between the sum of the amounts in items #2 and #3 above and the value reported in item #1. The two percent escalation factor is derived from the compound annual percentage change in the Implicit Price Deflator for the three-year period (1995-1998) ending with the determination period rounded to the nearest integer.

Both the two percent escalation factor and the seven percent after-tax rate of return is in accordance with the . ' nois Power Company Schedule of Rates for Electric Service, Illinois Commerce Commission No. 31, Third Revised Sheet No.

62 effective March 6,1998, and Second Revised Sheet No. 63, effective December 11,1995.

' The NRC formulas in section 10CFR50.75(c) include only those decommissioning costs incurred by licensees to remove a facility or site safely from semce and reduce residual radioactivity to levels that permit: (1) release of the property for unrestricted use and termination of the license; or (2) release of the property under restricted conditions and termination of the license. The cost of dismantling or demolishing non-radiological systems and structures is not included in the NRC decommissioning cost estimates. The costs of managing and storing spent fuel on site until transfer to DOE are not included in the cost fonnulas.

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, Attachment to U-603227 Page 2 of 2

5. Any contracts upon which the licensee is relying pursuant to 10CFR50.75(eXIXv).

Illinois Power is not relying upon any contractual obligations pursuant to I l 10CFR50.75(eXIXv) to accumulate decommissionins fundins for the Clinton Power Station.

l l 6. Any modifications to a licensee's current method providing financial assurance occurring since the last submitted report.

l l As this is the first report on the status of decommissioning funding for the Clinton {

l Power Station pursuant to 10CFR50.75(f), Illinois Power has no modifications to l l report regarding the current method for providing decommissioning financial ]

l assurance. I J

l 7. Any material changes to trust agreements.

l Illinois Power has no material changes to report regarding trust agreements with respect to Clinton Power Station decommissioning funding.

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