ULNRC-06201, 2015 Biennial Decommissioning Funding Status Report

From kanterella
Jump to navigation Jump to search
2015 Biennial Decommissioning Funding Status Report
ML15089A079
Person / Time
Site: Callaway Ameren icon.png
Issue date: 03/30/2015
From: Maglio S
Ameren Missouri
To:
Document Control Desk, Office of Nuclear Reactor Regulation
References
ULNRC-06201
Download: ML15089A079 (32)
v • d • e


Text

~~

'WAmeren Callaway Plant MISSOURI March 30, 2015 ULNRC-06201 U.S. Nuclear Regulatory Commission Attn: Document Control Desk Washington, DC 20555-0001 10CFR 50.75(+/-)(1)

Ladies and Gentlemen:

DOCKET NUMBER 50-483 CALLAWAY PLANT UNIT 1 UNION ELECTRIC CO.

FACILITY OPERATING LICENSE NPF-30 STATUS OF DECOMMISSIONING FUNDING Please find enclosed the 2015 biennial decommissioning funding status report for Callaway Plant.

This report is submitted in accordance with 10 CFR 50.75(+/-)(1).

This letter does not contain any new commitments. If you have any questions on this report, please contact Mr. Tom Elwood at (314) 225-1905.

Sincerely,

/.}~ct ~

Scott Maglio Manager, Regulatory Affairs Enclosure 1- NRC Decommissioning Funding Status Report- 2015 Enclosure 2- Amount of Decommissioning Funds Estimated to be Required Pursuant to 10 CFR 50.75 (b) and (c) Calculation Enclosure 3 - Missouri Public Service Commission Order Approving extension of the filing deadline to Apri11, 2015 Enclosure 4- Trustee's "Statement ofNet Assets Available for Benefits" as of December 31, 2014

.......................................................................................................................... PO Box 620 Fulton, MO 65251 AmerenMissouri.com ..............

STARS

  • Alliance

ULNRC-06201 March 30, 2015 Page2 cc: Mr. Marc L. Dapas Regional Administrator U.S. Nuclear Regulatory Commission Region IV 1600 East Lamar Boulevard Arlington, TX 76011-4511 Senior Resident Inspector Callaway Resident Office U.S. Nuclear Regulatory Commission 8201 NRC Road Steedman, MO 65077 Mr. Fred Lyon Project Manager, Callaway Plant Office of Nuclear Reactor Regulation U.S. Nuclear Regulatory Commission Mail Stop 0-8B 1 Washington, DC 20555-2738

ULNRC-06201 March 30,2015 Page 3 Index and send hardcopy to QA File A160.0761 Hardcopy:

Certrec Corporation 4150 International Plaza Suite 820 Fort Worth, TX 76109 (Certrec receives ALL attachments as long as they are non-safeguards and may be publicly disclosed.)

Electronic distribution for the following can be made via Responses and Reports ULNRC Distribution:

F. M. Diya D. W. Neterer L. H. Graessle T. E. Herrmann B.L.Cox S. A. Maglio T. B. Elwood Corporate Communications NSRB Secretary STARS Regulatory Affairs Mr. John O'Neill (Pillsbury Winthrop Shaw Pittman LLP)

ULNRC-06201 Page 1 of8 NRC Decommissioning Funding Status Report- 2015 10 CFR 50.75(f)(1) requires each power reactor licensee to report to the NRC on a calendar year basis, beginning on March 31, 1999, and every 2 years thereafter, on the status of its decommissioning funding for each reactor or share of reactor it owns. Union Electric Company d/b/a Ameren Missouri ("Ameren Missouri") hereby reports the decommissioning funding status for its Callaway Plant ("Callaway Energy Center").

Ameren Missouri is using the NRC three factor formula for determining decommissioning fund adequacy. The site specific decommissioning study referenced in Ameren Missouri's 2015 biennial decommissioning funding status report are provided for information only as part of the documentation presented to the Missouri Public Service Commission (MPSC) in the Company's 2011 triennial update filing.

1. Amount of Decommissioning Funds Estimated to be Required Pursuant to 10 CFR 50.75 (b) and (c)

For the purposes of this 2015 biennial decommissioning funding status report being submitted to the NRC, Ameren Missouri is using the "three-factor formula" specified in 10 CFR 50.75(b) and (c) 1 for determining decommissioning funding adequacy.

The minimum decommissioning cost estimate, pursuant to the 10 CFR 50.75(b) and (c) methodology, is $521,230,000, in terms of2014 dollars.

The detailed calculations from which the above estimate is derived are contained in Enclosure 2.

Ameren Missouri also has site specific decommissioning cost estimates for decommissioning of the Callaway Energy Center prepared by TLG Services, Inc. of Bridgewater, Connecticut. The specific studies are conducted to comply with Missouri Law:

4 CSR 240-3.185 Submission of Reports Pertaining to the Decommissioning of Electric Utility Plants (3) On or before September 1, 1990 and every three (3) years after that, utilities with decommissioning trust funds shall perform and file with the commission cost studies detailing the utilities' latest cost estimates for decommissioning their nuclear generating unit(s) along with the funding levels necessary to defray these decommissioning costs. These studies shall be filed along with appropriate tariff(s) effectuating the change in rates necessary to accomplish the funding required. In addition, the commission, at any time for just cause, may require a utility to file an updated decommissioning cost study, funding requirement and associated tariff(s).

ULNRC-06201 Page 2 of8 These studies are considered snap shots of the decommissioning cost and are used to determine if any changes are required in the contributions to the decommissioning fund. Due to the complexity of the study the use of cost escalation factor would introduce considerable uncertainty into the escalated cost. Since this study is conducted every three years, Ameren does not escalate the study cost estimates for the years between study periods.

The current site-specific analysis approved by the Missouri Public Service Commission (MPSC) was performed in August 2011. It calculated a decommissioning cost estimate of$754,498,000 in terms of2011 dollars. Ameren Missouri considers this site-specific decommissioning cost estimate of $754,498,000 as the estimate for which funding adequacy must be assured for MPSC funding adequacy purposes. Due to its site-specific nature, it is a more accurate estimate of projected decommissioning costs.

The site-specific estimate is considered more conservative as it includes non-radiological site restoration expenses and spent fuel management expenses, in addition to radiological license termination expenses. In the 2011 study, approximately 81.8% ($617,324,000) of the $754,498,000 site-specific cost estimate is associated with physical decontamination and dismantling of radioactive systems and structures such that the license can be terminated. Management and transfer of spent fuel accounts for 4.5% ($33,726,000) of the site specific cost estimate. The remaining 13.7% ($103,448,000) is for demolition of designated nonradioactive structures and limited site restoration.

An informational only copy of the 2011 Site Specific Decommissioning Cost Analysis for the Callaway Energy Center was previously provided as Enclosure 2 of Reference 1. In accordance with the 4 CSR 240-3.185 requirement, Ameren Missouri was required to file an updated decommissioning cost estimate and funding adequacy analysis with the MPSC by September 1, 2014. However, due to the anticipated NRC approval of Ameren Missouri's license extension application within a short time frame following the filing due date. Ameren Missouri and the MPSC Staff concurred that it would be appropriate to defer this filing until the operating license extension was approved such that the funding adequacy could be analyzed over the extended life of the plant. Consequently, Ameren Missouri applied for and an Order was issued by the MPSC granting an extension of the filing deadline to April1, 2015. A copy of the MPSC Order is included in Enclosure 3.

2. Amount of Decommissioning Funds Accumulated to the End of the Calendar Year Preceding the Date of this Report The total amount accumulated in the decommissioning fund as of December 31, 2014 is $502,192,645.57. This is an "after tax liquidation value" which reflects the final

ULNRC-06201 Page 3 of8 funds that would be received upon liquidation of the fund's assets and the payment of income taxes on realized capital gains. This is calculated as follows:

Market Value: $ 548,726,306.87 Less: Book Value: 316,058,000.39 Equals: Unrealized Gain: $ 232,668,306.48 Income Tax Rate = 20%

Income Tax on Unrealized Gain: $ 46,533,661.30 After-Tax Liquidation Value: $ 502,192,645.57 A copy of the trustee's "Statement ofNet Assets Available for Benefits" as of December 31, 2014 confirming the foregoing valuation amounts is provided in Enclosure 4.

This decommissioning fund balance indicated above is a total amount intended to cover the full green-fielding of the site. The funds in the trust fund are not segregated into sub-accounts for radiological decommissioning versus non-radiological decommissioning.

Based on the allocation percentages contained in the 2011 site specific decommissioning cost estimate, the dollar amounts of the overall trust fund allocated for the decommissioning cost categories can be derived:

License termination: 81.8% of $ 502,192,645.57 = $ 410,793,584.08 Spent Fuel Management: 4.5% of $ 502,192,645.57 = $ 22,598,669.05 Site Restoration: 13.7% of $ 502,192,645.57 $ 68,800,392.44 Missouri's definition of decommissioning encompasses both the radiological and non-radiological structures, systems and components of the plant, as stated in the following section from the Missouri Code of State Regulations:

4 CSR 240-20.070 Decommissioning Trust Funds (1) As used in this rule, decommissioning means those activities undertaken in connection with a nuclear generating unit's retirement from service to ensure that the final removal, disposal, entombment or other disposition of the unit and of any radioactive components and materials associated with the unit, are accomplished in compliance with all applicable laws, and to ensure that the final disposition does not pose any undue threat to the public health and safety. Decommissioning includes the removal and disposal of the structures,

ULNRC-06201 Page 4 of8 systems and components of a nuclear generating unit at the time of decommissioning.

Missouri law requires triennial updates of the decommissioning cost estimate and of funding adequacy. Missouri law also provides for the changing of rates charged to ratepayers to recover any changes in funding levels necessitated by the triennial update analyses. For this reason, Ameren Missouri considers the amount in the fund to be fully adequate to cover radiological decommissioning with an excess that could be applied to non-radiological decommissioning. The triennial update process required by Missouri statutes is considered adequate to ensure that any funding shortfalls will be addressed and corrected in a timely manner.

The applicable sections from the Missouri Code of State Regulations are as follows:

4 CSR 240-3.185 Submission ofReports Pertaining to the Decommissioning of Electric Utility Plants (3) On or before September 1, 1990 and every three (3) years after that, utilities with decommissioning trust funds shall perform and file with the commission cost studies detailing the utilities' latest cost estimates for decommissioning their nuclear generating unit(s) along with the funding levels necessary to defray these decommissioning costs. These studies shall be filed along with appropriate tariff( s) effectuating the change in rates necessary to accomplish the funding required. In addition, the commission, at any time for just cause, may require a utility to file an updated decommissioning cost study, funding requirement and associated tariff(s).

4 CSR 240-20.070 Decommissioning Trust Funds (7) Upon the filing of the appropriate tariff(s) as set in 4 CSR 240-3.180, the commission shall establish a schedule of proceedings which shall be limited in scope to the following issues:

(A) The extent of any change in the level or annual accrual of funding necessary for the utility's decommissioning trust fund; and (B) The changes in rates which would reflect any change in the funding level or accrual rate.

In past triennial filings, the MPSC has accepted the site specific decommissioning cost estimates and the funding adequacy analyses based on full green fielding of the unit, as would be indicated under Missouri's legal definition of decommissioning.

There is no basis for assuming any change in this practice in the future.

Consequently, it can be considered that the trust fund balance indicated is a total balance, not segregated on the basis of radiological versus non-radiological funding.

As the Missouri mechanism for assuring funding adequacy and for recovering

ULNRC-06201 Page 5 of8 decommissioning expenses from ratepayers includes the non-radiological decommissioning expenses as well as the radiological expenses, it is not necessary to segregate the decommissioning fund balances. Any shortfalls in funding for full green fielding are expected to be recovered from ratepayers as part of the triennial funding adequacy updating process.

3. Schedule of the Annual Amounts Remaining to be Collected:

As of December 31, 2014, the schedule of the annual amounts remaining to be collected is $6,758,605 per year for year 2015 though year 2023 . Only $5,068,953.75 will be collected for year 2024 as the Callaway Plant's operating license expiration date was October 18, 2024 and the collection will not be for a full year. 2 On September 1, 2011, Ameren Missouri filed its "Application for Approval of Decommissioning Cost Estimate for Callaway Energy Center and Funding Level of Nuclear Decommissioning Trust Fund" (Case No. E0-2012-0070). Attachment 2 to this application contained Ameren Missouri's analysis of the required funding level for the decommissioning trust fund, including all of the financial and economic assumptions on which the funding analysis was based. On May 29,2012, the funding level analysis was revised based on recommendations from the MPSC Staff. On September 21, 2012, Ameren Missouri and the MPSC Staff entered into a "Non-Unanimous Stipulation and Agreement" that received Ameren Missouri's application and funding level analyses into evidence and requested the MPSC to approve the funding level requested by Ameren Missouri in the application, as well as the real rate of return assumption used in the May 29, 2012 funding level analysis.

On October 3, 2012, the MPSC issued an "Order Approving Stipulation and Agreement" (effective October 13, 2012) that approved the foregoing "Non-Unanimous Stipulation and Agreement" as well as continuing the contribution to the decommissioning trust fund at the current level of$6,758,605 annually and affirming that Missouri is 100% responsible for the decommissioning liability. The MPSC Order also approved the rates of return described in the "Non-Unanimous Stipulation and Agreement" and used in the funding level analysis and included language stating, "The 5.338% annual real rate of return through 2023, which is based on the weighted average return of7.338% minus the CPI inflation of2.000%, is approved."

As of the December 31, 2014 date of this report, the MPSC Order in this Case E0-2012-0070 continues to be the effective ruling establishing state regulatory authority approved return and funding assumptions.

Copies of the Non-Unanimous Stipulation and Agreement" (which contains the May 29, 2012 revision of the funding level analysis) and the MPSC "Order Approving Stipulation and Agreement" were previously provided in Reference 1, Enclosures 4 and 5 respectfully.

ULNRC-06201 Page 6 of8

4. Assumptions Used Regarding Rates of Escalation in Decommissioning Costs, Rates of Earnings on Decommissioning Funds, and Rates of Other Factors Used in Funding Projections:

The Company used the following investment and return assumptions in its funding adequacy analysis filed with the MPSC in Case No. E0-2012-0070 and these values are being provided for your information 3 :

  • Total decommissioning cost estimate: $754,500,000
  • Base year of the cost estimate: 2011
  • Federal income tax rate: 20%
  • State income tax rate: 0%
  • Composite federal & state income tax rate: 20%
  • Projected investment management and trust fees: 15.00 Basis Points
  • Asset allocation: 65% Equities I 3 5% Bonds
  • Real rate of return on bonds: 2.25% (Pre-Tax & Fee)
  • CPI Inflation: 2.00%
  • Nominal return on bonds 4.25% (Pre-Tax & Fee)
  • Equity premium over bonds: 4.75%
  • Nominal return on equities: 9.00% (Pre-Tax & Fee)
  • Weighted average return: 7.338% (Pre-Tax & Fee)
  • Real rate of return through 2023: 5.338% (Pre-Tax & Fee)
  • Year in which divestiture from equity investments occurs: 2023 Based on the foregoing assumptions, the anticipated annual decommissioning contributions of $6,758,605 would be adequate up to an annual decommissioning inflation rate of 1.352%. The annualized rate of earning on decommissioning fund return (pre-tax and fee) required at the above level of inflation is 6.4695%. The MPSC Order provided in Reference 1, Enclosure 5 also approved the rates of return as described in the "Unanimous Stipulation and Agreement" (Reference 1, Enclosure
4) and used in the funding adequacy analysis.
5. Any Contracts Upon Which the Licensee is Relying on Pursuant to 10 CFR 50.75(El(LlM:

None

6. Any Modifications Occurring to a Licensee's Current Method of Providing Financial Assurance Since the Last Submitted Report:

None.

The Company has used the "External Sinking Fund" method since 1985.

ULNRC-06201 Page 7 of8

7. Any Material Changes to Trust Agreements:

There have been no material changes to the qualified trust agreement since the last report.

The non-qualified trust that was required by Illinois has been eliminated, as Ameren Missouri no longer has customers in Illinois. This non-qualified trust was never funded 4 .

1 The NRC formulas in section 10 CFR 50.75(c) include only those decommissioning costs incurred by licensees to remove a facility or site safely from service 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 formulas.

2 On March 6, 2015, the NRC approved Ameren Missouri's application for a 20-year extension to the Callaway Plant's operating license. The operating license will now expire October 18, 2044. This operating license extension will provide an additional 20-years of funding for decommissioning, which will be considered in determining a revised annual funding level at the time the next triennial update filing is made with the MPSC on April1, 2015.

3 The funding adequacy analysis filed with the MPSC by the Company in this Case No.

E0-2012-0070 was based on the indicated return assumptions. As stated in a prior footnote, an MPSC order in this case approved the continuation of the annual Missouri contribution at its current level of$6,758,605, effective October 13, 2012. At the time of this update filing, the Missouri jurisdiction is responsible for 100% of the decommissioning liability.

4 On February 10, 2005, the MPSC approved Ameren Missouri's proposed transfer of its Illinois electric and gas properties to an Illinois affiliate, Ameren Illinois. The closing date for the property transfer was May 2, 2005. In accordance with the MPSC Order, the tax-qualified decommissioning trust's Illinois jurisdictional sub-account was eliminated following the closing. Ninety-eight percent of the assets in the existing Illinois sub-account as of the closing date were reallocated to the Missouri sub-account and the remaining two percent were reallocated to the Wholesale sub-account. As a result of the transfer, Ameren Missouri no longer has any Illinois ratepayers and will no longer collect decommissioning contributions in Illinois for its Callaway Plant, which is located in Missouri. The decommissioning liability previously borne by the Illinois ratepayers was transferred to Ameren Missouri and Wholesale customers. Decommissioning expenses collected from Missouri jurisdictional ratepayers was increased by $272,194 annually in

ULNRC-06201 Page 8 of8 accordance with the MPSC Order to account for the increased decommissioning liability borne by the Missouri ratepayers following the property transfer.

8. References
1. ULNRC-05976, "STATUS OF DECOMMISSIONING FUNDING," dated March 28,2013

ULNRC-06201 Enclosure 2 MINIMUM DECOMMISSIONING COST- PER 10 CFR 50.75 FORMULA PROCESS

($Millions)

Determine Estimated Decommissioning Costs in 1986 Dollars:

[From 10 CFR 50.75 (c)(1)(i) For PWR <!: 3400 MWt]

Calculate Labor Adjustment Factor (lx):

U. S. Department of Labor, Bureau of Labor Statistics; Employment Cost Index for total compensation, for private industry workers, by bargaining status, census region and division, and metropolitan area status Midwest Region Base Lx = 2.072 (December 2005 = 100)

December-2014 ECI = 120.3 (December 2005 =100)

Lx =[(Base Lx) * (ECI I 100) 1 Calculate Energy Adjustment Factor (Ex):

From NUREG-1307 Revision 15 Ex= Px (Px Coefficient) + Fx (Fx Coefficient) 0.58 = Px Coefficient (For PWR)

_ _ _ _ _0_.4_. 2 = Fx Coefficient (For PWR)

Determine Px Value

= Px U. S. Department of Labor, Bureau of Labor Statistics; Producer Price Index -Commodities Series ID: WPUOS43 Not Seasonally Adjusted Fuels and related products and power Industrial electric power 1982 = 100 January 1986 Value of PPI Series ID WPU0543 = 114.200 December 2014 Value of PPI Series ID WPU0543 = 214.700 Px = December 2014 Value of PPI Series ID WPU0543 I January 1986 Value of PPI Series ID WPU0543 Determine Fx Value

= Fx U. S. Department of Labor, Bureau of Labor Statistics; Producer Price Index -Commodities Series ID: WPU0573 Not Seasonally Adjusted Fuels and related products and power Light fuel oils 1982 = 100 January 1986 Value of PPI Series ID WPU0573 =82.000 December 2014 Value of PPI Series ID WPU0573 = 221.000 Fx =December 2014 Value of PPI Series ID WPUOS73 I January 1986 Value of PPI Series ID WPU0573 Calculate Waste Burial Adjustment Factor (Bx):

From NUREG-1307 Revision 15 Table 2-1 Bx Values for Generic LLW Disposal Site Combination of Compact-Affiliated and Non-Compact Facility PWR Calculate the Decommissioning Cost Estimate - 2014$

.---~-~-. Estimated Cost (Year x) = [1986$ Cost]* [(A*Lx)+(B*Ex)+(C*Bx)]

0,65 = Lx Coefficient (A) 0.13 = Ex Coefficient (B)

~ 0_

.2_2, = Bx Coeficcient (C) l$ 521.230 =Estimated 2014$ Cost Page 1 of 1

ULNRC-06201 Enclosure 2 MINIMUM DECOMMISSIONING COST* PER 10 CFR 50.75 FORMULA PROC~

Labor Adjustment Factor (lx) Derivation

() 125.03 =Jan -1986 Index Value (Interpolated)- June 1981 =100

=

1.409 =Multiplier: Conversion of June 1989 100 Index Values to June 1981 =100 Index Values 1.839 =Multiplier: Conversion of Dec 2005 =100 Index Values to June 1989 =100 Index Values Lx Index Date Index Base Year Index Base Year Index Value Index Base Year At Index date f:7'\

0 Page 1 of3

ULNRC-06201 Enclosure 2 MINIMUM DECOMMISSIONING COST- PER 10 CFR 50.75 FORMULA PROCESS labor Adjustment Factor ILxl Derivation

/~ ' ':\

I . )

\___ .... =

125.03 =Jan -1986 Index Value*{lnterpolated) -June 1981 100 .

=

1.409 Multiplier: Conversion of June 1989 = 100 Index Values to June 1981 =100 Index Values

1.839 Multiplier: Conversion of Dec 2005 =100 Index Values to June 1989 100 Index Values Index Base Year Index Base Year Index Base Year

()

i i

i I

ii I.'

1:*

I I*

Page2 of3

ULNRC-6201 Enclosure 2 MINIMUM DECOMMISSIONING COST- PER 10 CFR 50.75 FORMULA PROCESS Labor Adjustment Factor (lx) Derivation

( . -->;.:

125.03 =Jan -19861ndex Value (Interpolated)- June 1981 100 =

\ ...:_ .*.

1.409 =Multiplier: Conversion of June 1989 =100 Index Values to June 1981 =100 Index Values 1.839 = Multiplier: Conversion of Dec 2005 = 100 Index Values to June 1989 =100 Index Values lndeiC Date ~..lr. ;.~ .l.i.:l ndex Value Index Base Year ~~ID1~ Index Value Index B<!Se Year !~~l~ Index Value Index Base Year ~~~~~ At Ind':x date "nuuononm:uonnnnn-nn~~~~f=~ nonoonomonnn___M*noou***********oooooo .!.;~_;!.t.~.~.!i~ -Mnonnnoo---***nonno  ;:~;:~;:;:;~: ~M~~

=t:*::~~~~::t~:::=:EL=::~::::::__,_ _: : : *-~ :t: =: :. *-- :::==::. .!*~~:: ~~~~:~~~ I .:~:~. ~::: .,

~

~.

Employment Cost Index  ;

Original Data Value Series ld: CIU201 00000002301

. Not seasonally adjusted Series

Title:

Total compensation for Private industry workers in Midwest, Index Ownership: Private Industry workers Component: Total compensation Occupation: All workers Industry: All workers Subcategory: All workers Area: Midwest Region 0

Page3 of3

~ ..

ULNRC-06201 Enclosure 2 MINIMUM DECOMMISSIONING COST* PER 10 CFR 50.75 FORMULA PROCESS Energy Adjustment Factor (Ex) Derivation

/*-:-~'_)

\*

\-

Ex =Px (Px Coefficient) + Fx (Fx Coefficient)

=Px Coefficient (For PWR)

= Fx Co.efficient (For PWR)

Px Fx Index Date WPU0543 WPU0573 Ex

~ .

. . (~ *
  • .. \~-~~! ..

Page 1 of9

ULNRC-06201 Enclosure 2 MINIMUM DECOMMISSIONING COST* PER 10 CFR SO. 75 FORMULA PROCESS  ;.

Energy Adjustment Factor (Ex) Derivation I

,..--~)

\. .

\. '*..__

Ex= Px {Px Coefficient) + Fx (Fx Coefficient)

= Px Coefficient (For PWR)

=Fx Coefficient (For PWR)

Px Fx Index Date WPU0543 WPU0573 Ex

  • QD Page 2 of9

ULNRC-06201 Enclosure 2 MINIMUM DECOMMISSIONING COST- PER 10 CFR 50.75 FORMULA PROCESS

  • * ....* *---:*) Energy Adlustment Factor (Ex) Derivation

( *'*

'-J--~

  • Ex = Px (Px Coefficient) + Fx (Fx Coefficient)

=Px Co.efficient (For PWR)

=Fx Coefficient (For PWR}

Px Fx Index Date WPU0543 *V\fPU0573 Ex

. r:J

. "-~ . ..

- ~

Page 3 of9

ULNRC-06201 Enclosure 2 MINIMUM DECOMMISSIONING

. COST- PER

. lO*CFR 50.75 FORMULA PROCESS I ,-**-**)

, ~

  • Energy Adjustment Factor (ExJ Derivation

\* .

Ex = Px (Px Coefficient) + Fx (Fx Coefficient)

= Px Coefficient (For PWR}

=Fx Coefficient (For PWR}

Px Fx WPU0543 WPU0573 Ex I

(J I

~

i l

l f.

~

t*

1.

l 1:

i j.*..

f.

t.

I f:?'\

\2:_)

Page4of9

ULNRC-06201 Enclosure 2 MINIMUM DECOMMISSIONING COST* PER*lO:CFR 50.75 FORMULA PROCESS Energy Adjustment Factor (Ex) Derivation Ex =Px (Px Coefficient) + Fx (Fx Coefficient)

= Px Coefficient (For PWR)

= Fx Coefficient (For PWR)

Px Fx Index Date WPU0543 WPU0573 Ex

()

'-~ . . ..

~

Ij f:

I l :

I**

Page 5 of9 **

I fi

~ .

ULNRC-06201 Enclosure 2 MINIMUM DECOMMISSIONING

. COST- PER .10 CFR 50.75 FORMULA

.. . PROCESS Energy Adjust~ent Factor (Ex) Derivation Ex = Px (Px Coefficient)+ Fx (Fx Coefficient)

= Px Coefficient {For PWR)

= Fx Coefficient (For PWR)

Px Fx Index Date WPU0543 WPU0573 Ex

~

I f

rr I.

r t"

I II I .

Page 6 of9

ULNRC-06201 Enclosure 2 MINIMUM DECOMMISSIONING COST* PER 10 CFR 50.75 FORMULA PROCESS Energy Adjustment Factor (Ex) Derivation

. (~. -*\

\<.-~/  :. Ex= Px (Px Coefficient) + Fx (Fx Coefficient)

= Px Coefficient (For PWR)

= Fx Coefficient (For PWR)

Px Fx

. Index Date WPU0543 WPU0573 Ex

~-

t~

l

.. f

~

() f

~

f t

!~

1f I

I.

I,.: .,

I' ti Page 7 of9

ULNRC-06201 Enclosure 2 MINIMUM DECOMMISSIONING COST* PER 10 CFR 50.75 FORMULA PROCESS Energv Adjustment Factor (Ex) Derivation Ex = Px {Px Coefficient} + Fx (Fx Coefficient)

= Px C9.efficient (For PWR)

= Fx ~o:efficient {For PWR)

Px Fx Index Date WPU0543 WPU0573 Ex PageS of9

  • ULNRC-06201 Enclosure 2 MINIMUM DECOMMISSIONING COST- PER 10 CFR 50.75 FORMULA PROCESS Energy Adjustment Factor (Ex) Derivation Ex =Px (Px Coefficient) + Fx _

(Fx Coefficient)

= Px Coefficient (For PWR)

=_F);( Coefficient (For PWR)

Px Fx Index Date WPU0543 WPUOS73 Ex

~roducer Price l~de?'*Commoditi~ Producer Price Index-Commodities

:. Original Data Value Orisillnal. Data Value * * -
  • px Values FxValues Series ld: ~P.U0543 Series Jd: WPU0573 N*o t Seas~mally Adjusted Not Seasonally Adjusted Group: . : _ Fuels and related products and power Group: . Fuels and related ~rod~~ts and power Item: Industrial electri-c pOwer* Item: Light fu~l oils Base Date: 198200 Base Date: 198200 ..
  • . ()

Page 9 of9

ULNRC-06201 Enclosure 2 MINIMUM DECOMMISSIONING COST PER 10 CFR 50.75 FORMULA PROCESS Waste Burial Adjustment Factor (Bx) Determination Combination of Compact-Compact-Affiliated Affiliated and Non-Facility Compact Facility 1986

~--------------------***----------------------*****--------------*-*-*

1987 1988

**--------------------~--------------------------*********-------*-*

1989 I*

i 1990 l

\ 1991 i l

1992 l r

  • i.

1993 1994 f*

1995 f 1996 r 1997 I 1998

(~ 2000

' \...~J 2002 2004 I

    • aaa*************************************---*-------*-----------*-*-M**********

2006 I 2008 2010 25.231 27.292 9.872 12.28 Ir:

2012 30.581 13.885 ii L

L

....J,

~l

~i

~~:1 ti','i

~1

i

~l

~

    • .*  :*~

X1

'l

j

.:.~

~

~

l
  • Page 1 of1 f

ULNRC-06201 Enclosure 3 STATE OF MISSOURI PUBLIC SERVICE COMMISSION At a session of the Public Service Commission held at its office in Jefferson City on the 27th day of August, 2014.

Application of Union Electric Company d/b/a )

Ameren Misso~:Jri..for Approval of Decommissioning . )

  • File No. EE-2015-0046 Cost Estimate for Callaway Energy Center and )

Funding Level of Nuclear Decommissioning Trust Fund. )

ORDER GRANTING VARIANCE Issue Date: August 27, 2014 Effective Date: August 27, 2014 On August 15, 2014, Union Electric Company d/b/a Ameren Missouri ("Ameren l**

l Mis~ouri") submitted a request for variance from the September 1, 2014 deadline for filing costs estimates for decommissioning the Callaway Energy Center ("Callaway").

Commission Rule 4 CSR 240-3.185(3) requires all utilities with decommissioning trust fUJ1dS for nuclear plants ~0 file triennial COSt studies of COSt estimates for decommissioning nuclear generating units along with appropriate tariffs. Ameren Missouri requests a seven month extension to permit the filing of the cost estimate no later than April1, 2015. Ameren 1

Missouri also requests the Commission issue an order in this matter by August 29, 2014.

Ameren Missouri currently has pending before the Nuclear Regulatory Commission

("~RC") a request to extend the life of its Callaway from 2024 to 2044. 2 Ameren ~issouri expects a- decision by the NRC within the next six months.

1 Commission Rule 4 CSR 240-2.080(14) list the requirements for a request for expedited treatment, including a request in the title of the pleading and what the pleading shall set out with particularity.

2 As a result of a decision by the U.S. Court of Appeal for the DC Circuit in New York v. NRC, 681 F.3d 471 (D.C. Cir. 2012), that vacated certain NRC rulemaking, NRC suspended certain licensing activities, including tT\ *the Cailaway Energy Center's License Renewal. .,.

'\(_:_) .**:

.~

ULNRC-06201 Enclosure 3

... -*.~*\

On August 20, 2014, the Commission issued an order directing notice be provided to ' . /

all parties of Ameren Missouri's last rate case (File No. ER-2012-~166) and directing the Staff of the Missouri Public Service Commission to file a recommendation. The Missouri Industrial Energy Consumers ("MIEC") filed a timely application to intervene, which the Commission granted on August 22, 2014.

On August 22, 2014, Staff filed a recommendation that th~ Commission grant Ameren Missouri's requests for a variance and for expedited treabnent. Staff points out that t-a decommissioning cost analysis would vary based on the remaining lifespan of Callaway.  !

If Ameren Missouri is not granted a waiver of the Commission's reporting requirements before September 1, 2014, it must submit a cost estimate for decommissioning that is based on Callaway's currently licensed 40-year rife. Staff states that if the decommissioning

'r 1

cost estimate is instead based on a 60-year operating license, the Callaway decommissioning charges *authorized under§ 393.292, RSMo 2000, may not increase or ('

' .J

... the magnitude of any required increase would be significantly less.

Based on Ameren Missouri's belief that it will receive a 20-year operating extension, Staff th!nks granting the variance will be more efficient. Since the decommissioning charges

  • ~uthorized under§ 393.292 permits single *issue ratemaking, a pending general rate case is not required before the Commission can direct a change to the rate. The~efore, no harm to th.e ratepayets is expected to result if the requested variance is granted."

On August 22, 2014, the Commission issued an order setting an August 25, 2014 deadline for responses to Staffls recommendation. No responses or reque~ts for a hearing .

were. .received.

  • . .. . . ~. ... .
  • o 2 f.

ULNRC-06201 Enclosure 3 Commission Rule 4 C~R 240~3. ~ ~5(5) permits the granting of the requested variance after ~ue noti~e and hearing anp. upon a showin~ of good cause. 3 Good cause exists when a substantial rea~on or cause wo~ld justify the neglect of a duty. The r~ason 4

5

.provided must be real, substantial and reasonable. -A fter *reviewing Ameren Missouri's request and Staff's rec~mmendation, the Commission fi11ds good cause ~~ist~ to grant ~he requests fqr a variance and expedited*treatme~t. i j

i THE COMMISSION ORDERS THAT: l l!

I *- *

. 1. The requ.est ~or ~xpedited trea~men~ is granted. l

    • . . f.

~

2. Ameren Missouri is granted a variance from *th~ deadline in Commission Rule  !

4 CSR 240-3.185(3) and mu~t file its co_s t e~t~m~te for decom_missioning the Calla~ay

~nergy Center no later than April 1, 201~ .

.-10

.** \.~

4.

. This file shall b~ closed on* ~eptember 2, 2014.

BY THE .COMMISSJON Morris. L. Woodruff Secretary R. Kenney, Chm., Stoll, W . .Kenney,

.. ~~11~ - and Rupp, CC., concur.

  • *. Burton, Regulatory Law Judge.

3 The requirement for a hearing is .met when *i he opportunity for hearing has been provided and no proper party has r~qu~sted the opportunity to present evidence. St~te ex rei. Rex D~ffenderfer enterpi'ises, Inc.

  • v.

Public Service Commission, 776 . S.W.2~ 494, 4~6 (Mo. App. 1989).. .

  • ~Cent. M~. Paving Co; v: {abor lndu;. Re/~ti~ns Comm'n, 575 S.W.2d 889, 8902 (Mo. App. W.O. 1978).

5 . . . . . .

Belle St~te f3ank v. Indus. Comm'n, P47 S.W.2d 841,846 (Mo. App. S.D. 1~77).

ULNRC-06201 Enclosure 3

~ .

. *STATE OF MISSOURI

. OFFICE .c;lF.THE PUBLiC SERVI~E COMMISSION

: .: f.h:ave compared the preceding copy with .t he original o~ file in a'nd *r. do

~

. **. :_:th_ i s**, office hereby ~rtify ~he same to ~e a true ~opy

therefrom. and the whole thereof. ..

.WITNES~ my ~an~ and sea.l .of :t~~ Public Se.rvic~ Cor:nmission~

  • . : . : at Jeffer~on City, Mis~o~ri, .thJ$ 27th day_of AugO$~ 2~.14~ :

,/J l.

\. *

.J

.- . -~ .

. . . \ ..

. ~-- ...,.,. ..

MOPS~~- /_ ... -~

(./ * '*-)M81.D'1JOU1.etW*

ULNRC-06201 Enclosure 3 r~~

f .. . ) MISSOURI PUBLIC SERVICE COMMISSION

~ ...-

August 27, 2014 File/Case No. EE-2015-0046 Missouri Public Service Missouri Public Service Office of the Public Counsel Com.mission Commission Dustin Allison Steve Dottheim ..Office General_Counsel . 200 Madison Street, Suite 650 200 Madison Street, Suite 800 **200 Madison Street, Suite 800 P.O. Box 2230 .

  • P.O.Box360 . P.O. Box 360 . Jefferson City, MO 65102
  • Jefferson City, MD Q51 02 Jefferson ~it}i, MO 65102
  • opcservice@ded.mo.gov Steve.l;)ottheim@psc.mo.gov st~ffcounselservice@psc.mo.gov Union Electric Company Missouri industrial Energy
  • Missouri Industrial -E nergy Wendy Tatro Consumers (MIEC) - Consumers (MIEC) ***

. .

  • 1901 Chouteau Avenue Edward F Downey . : Diana MVuylsteke St. Louis, MQ-*63166-61:49 221 Boliv~r Street, Suite 101 211 N. Broadway, Su_ ite 3600
  • AmerenMOSe~ice@ameren.com Jefferson City, MO 65101  : St. Louis, MO 6;31"02

_e~~owney@bryancave.com dmvuyl:steke@bryancave_ .com Ef!cl~sed find a ~ertified copy of an O.rd~r or Notice issu~d in the ~bove-refer~nc_ed m_atter(s).

Sincerely, Morris L. Woodruff

-~ecretary

  • i
  • ~

/

Recipients listed above with a valid e-mail address.will receive electronic service. Recipients without a valid ~-mail address wi_IJ receive paper servi<;e.

~ - ~ ,.--.. ,......., __

~

... \:..:;; u I

\~

\

BNY MELLON TRDA56 A56G28172000 ANNUAL FINAL 234731 2014-12-31 CYCLE A 23:47:37 RUN DATE: 13-JAN-15 STATEMENT OF NET ASSETS AVAILABLE FOR BENEFITS PAGE:

A56 G281720 31 DECEMBER 2014 NA100 AMEREN OVERALL COMBINED AMEREN OVERALL COMBINED ASSETS INVESTMENTS:

  • INVESTMENTS AT IDENTIFIED COST $ 314,154,401.89 '
  • UNREALIZED APPRECIATION-INVEST 232,668 , 306.48

$ . 546,822,708.37 RECEIVABLES:

SECURITIES SOLD 3,624,483.67 INTEREST 1,071,274.56 DIVIDENDS 487,205.40 5,182,963.65 TOTAL ASSETS 552,005,672.02 LIABILITIES PAYABLES SECURITIES PURCHASED 3,279,365.15 3,279-,365.15 TOTAL LIABILITIES 3,279,365.15 NET ASSETS $ 548,726,306.87 me

Jr.

oz o;u

(/)()

C I

...,0 rom

~N 0

~

( '

,t*'

~... ..; . :,;. *: t --:: .J . ~*... ,:.,;;::.::,~*4*..;;,;._s ;. :.~ *;:*.-..~.;,t.::,-;;,'...'.:i....:.~:~7:~.:~*. t..::...-,{-;J.i*:t-:;_o,;,~j,.;.~~\ i:.*O"~~-~)..-:I:i2*JJ:~;;.~;-::*~.~:-..~~--..~.: . . :. ......... *' - ~ ,, ,; 4

  • ~' . .. ;. , , -... *~.
    "', *** ~ ~*:; _ * . .. :. . . .. . . * * ,;.* *** : * * -~-~::.-::--*- ... *;*~.~-,....._. * * * , . . ~,.- , . . .... . , . _. ........_...* *
  • _;:"~ . . . . . . . ,~.~-*:-*-*- *-***--.- .......... - ... . - . . . . ... _ . , ....,.. , . , , , . ., . . , _ , ..,. ., ..... . . ,..,_. . . ,,r* *'** , .,.., - ~ *'* ** ' :** ' = ,__ .,,.. ,,,, " * ** ~;*--* _,,.., _ .. ,.,.___... ,..,_ _

,. . ,,,..,. ,.,,:""--,*-.~ ~"-;'- .. - *

. ' ({!A r\

~*

.\2:) 0 t* . ,

'......J BNYMELLON TRDA56 A56G28172000 ANNUAL FINAL 234731 2014-12-31 CYCLE A 23:47:37 RUN DATE: 13-JAN-15 STATEMENT OF NET ASSETS AVAILABLE FOR BENEFITS PAGE: *1 A56 G281720 31 DECEMBER 2014 NA200 AMEREN OVERALL COMBINED AMEREN OVERALL COMBINED BOOK VALUE INVESTMENTS:

INVESTMENTS AT IDENTIFIED COST $ 314.154,401.89

$ 314,154,401 .89 RECEIVABLES SECURITIES SOLD 3,624,483.67 INTEREST 1,071,274.58 DIVIDENDS 487.205.40 5,182,963.65 PAYABLES SECURITIES PURCHASED 3.279.365.15-3,279,365 . 15-TOTAL BOOK VALUE 316,058,000.39 UNREALIZED APPRECIATION/DEPRECIATION UNREALIZED APPRECIATION-INVEST 232.668,306.48 232,668,306 .48

~- ..

TOTAL UNREALIZED 232.~68,306 . 48 TOTAL MARKET VALUE $ 548,726,306.87 me

Jr oz o;o CJJ ()'

t: I roo 0')

~N 0

~

.......... ---~*******-~ ....... ;. ....... ~.:.:..=. ..:.~...*;:::.::.~.:.:.-~..:::;..-...;::~;*..:.i**:::i.~*~~-:'i~~~:.:i~c:.:;.i*;!.~~;g:i*.*2;::QJ£i.~*~-;~I4..~~~£-l~:;~:-~..... ~. . :.-.~~.--.:.~~--*~:.- . t~.-~... :.*.;...;~.-~:=~---~ :_:~-------** -~ .....:.:-:~. . . .-.. . . ~~~~"."*". . .._. . .t:,.......,. ...,.........-:**.......:*-***:~~....-, .......~ ** .,.,.i__ ~., .. -**~*: ...*..,-*****- **-:-*----~.---- ..~:.- *. ,...........,~~***;--......... _.1

."' .. - * - * ....... *** ... .. ... **** * ........ ................ ... ............ - - -- - - - - .................... - . . . . _ . . _ . _ .... __ . .. -:---.-- ....... ..

Retrieved from "https://kanterella.com/w/index.php?title=ULNRC-06201,_2015_Biennial_Decommissioning_Funding_Status_Report&oldid=2511129"