View source for L-13-033, Submittal of the Decommissioning Funding Status Report for Beaver Valley Power Station, Units 1 & 2, Davis-Besse Nuclear Power Station, and Perry Nuclear Power Plant

{{Adams
| number = ML13084A374
| issue date = 03/25/2013
| title = Submittal of the Decommissioning Funding Status Report for Beaver Valley Power Station, Units 1 & 2, Davis-Besse Nuclear Power Station, and Perry Nuclear Power Plant
| author name = Halnon G
| author affiliation = FirstEnergy Nuclear Operating Co
| addressee name = 
| addressee affiliation = NRC/NRR, NRC/Document Control Desk
| docket = 05000334, 05000346, 05000412, 05000440
| license number = DPR-066, NPF-003, NPF-058, NPF-073
| contact person = 
| case reference number = L-13-033
| document type = Letter type:L
| page count = 13
}}

=Text=
{{#Wiki_filter:76 SouthMain Street FirstEnergyNuclear Operating Company                                                            Akron,Ohio 44308 March25,2013 L-13-033                                                              1 0c F R5 0 . 7 5 ATTN:Document            ControlDesk U.S. Nuclear      Regulatory Commission Washington,         DC 20555-0001

==SUBJECT:==

BeaverValleyPowerStation,UnitNos.1 and2 DocketNo. 50-334,LicenseNo. DPR-66 DocketNo. 50-412,LicenseNo.NPF-73 Davis-Besse         NuclearPowerStation DocketNo.50-346,LicenseNo. NPF-3 PerryNuclearPowerPlant DocketNo.50440, LicenseNo. NPF-58 Submittalof the Decommissioninq          FundinqStatusReportsfor BeaverVallevPower Station.UnitNos.1 and2, Davis-Besse            NuclearPowerStation.and PerrvNuclear PowerPlant Pursuantto 10 CFR50.75(0(1),           the FirstEnergyNuclearOperatingCompany,on behalf of the FirstEnergy        Corp.,is submiftingthe encloseddecommissioningfundingstatus reportsfor the BeaverValleyPowerStation,UnitNos.1 and2, the Davis-Besse NuclearPowerStation,andthe PerryNuclearPowerPlantfor the yearending December        31.2012.
Thereare no regulatorycommitmentscontainedin this letter. lf thereare any questions,or if additionalinformationis required,pleasecontactMr.ThomasA. Lentz,Manager- Fleet Licensing,      at (330)315-6810.
Sincerely, GreqolotH."Halnon Director,FleetRegulatory        Affairs

BeaverValleyPowerStation,UnitNos.1 and2 Davis-Besse NuclearPowerStation PerryNuclearPowerPlant L-13-033 Page2 Attachments:
: 1. Decommissioning FundingStatusReport- BeaverValleyPowerStation,UnitNo. 1
: 2. Decommissioning FundingStatusReport- BeaverValleyPowerStation,UnitNo.2
: 3. Decommissioning FundingStatusReport- Davis-BesseNuclearPowerStation
: 4. Decommissioning FundingStatusReport- PerryNuclearPowerPlant cc: NRCRegionI Administrator NRCRegionlll Administrator NRCResidentInspector  (BeaverValley)
NRCResidentlnspector  (Davis-Besse)
NRCResidentInspector  (Perry)
NRCProjectManager(BeaverValley)
NRCProjectManager(Davis-Besse)
NRCProjectManager(Perry)
DirectorBRP/DEP SiteBRP/DEPRepresentative UtilityRadiological SafetyBoard

Attachment 1 L-13-033 Decommissioning   FundingStatusReport- BeaverValleyPowerStation,UnitNo.1 Page1 of 3 ThisreportreflectsFirstEnergy  Corp.'sconsolidated shareof ownershipinterestin BeaverValleyPowerStation,UnitNo. 1, as of December        31,2012.
: 1. The minimumdecommissioning      fundestimate, pursuant    to 10 CFR50.75(b)   and(c)
(seeSchedule   1):
FirstEnergy NuclearGeneration,  LLC                       $507,927,560
: 2. The amountaccumulated     in externaltrustfundsas of December      31,2012:
AfterTax FirstEnergy NuclearGeneration,  LLC                       $250,932,980
: 3. A scheduleof the annualamountsoverthe numberof yearsremaining           to be collectedfrom ratepayers:
AmountRemaining                                        $0 Numberof yearsto collect                                0
: 4. The assumptions   usedregarding  ratesof escalation  in decommissioning   costs, ratesof earningson decommissioning    funds,and ratesof otherfactorsusedin fundingprojections:
Consolidated  Ownership  Interestin Unit               100o/o "Real"Rateof ReturnthroughDismantlement                2.00o/o Yearof FinalDismantlement                              2043 Yearof LicenseTermination                              2036 5 . Thereare no contractsuponwhichthe owners/licensees        are relyingpursuantto 10 cFR 50.75(eX1)(v).
6 . Therehasbeenno modification    to the currentmethodof providing    decommissioning fundingassurance   sincethe lastsubmitted report.
7 . Therehavebeenno material     changesto the applicable   trustagreement(s)  sincethe lastsubmittedreport.
L-13-033 Page2 of 3
: 8. FirstEnergyNuclearOperatingCompany(FENOC)recognizes      thata shortfall exists for FirstEnergy NuclearGeneration, LLC,whenthe existingtrustbalances  and assumedearningsarecompared    withthe NRCformulaamountcalculated     in ltem1, above.Whenthe BeaverValleyPowerStation,UnitNo.1, portionof an existing
   $95millionParentGuarantee                             the remaining is includedin the calculation,            shortfallis FENOCwillobtaina ParentGuarantee
   $14,112,255.To resolvethe shortfall,                                     in accordance with10 CFR50.75(b)(2)  and(bX3)within90 daysof the dateof this submittal.
: 9. Mathematicalroundingwasperformed   duringthe development  of the supporting calculations.
L-13-033 Page3 of 3 Schedule1 FIRSTENERGY      CORP.
Calculation of MinimumFinancial     Assurance   Amount December31, 2012 BEAVERVALLEYPOWERSTATION,UNITNO.1 Pennsvlvania   Reqions Labor(L)= Northeast Energy(E)= National WasteBurial(B)= Generic For PWRUnit Adjustment                          Escalation Factor'          Ratio             Factof l_=          2.547           0.65               1.656 f=           2.632           0 . 13            0.342
                          $=          13.885           0.22              3.055 PWREscalation     Factor=                                               5.053 BaseAmountfor PWRbetween1200MWtand 3400MWt= ($75m+ 0.0088P)
(P = powerlevelin megawatts     thermal= 2900)
($ZS+ 0.0088(2900))    million=                                     $100,520,000 Escalated  Amountfor unit2=
100,520,000            x             5.053                                          $507,927,560 Owner/Licensee                     Ownership FirstEnergy  Nuclear Generation,  LLC                    100.00%      $507,927,560 datausedto developLaborfactor,actual Note1: Actualfourthquarter2012Bureauof LaborStatistics December2012Bureauof LaborStatisticsdatausedto developEnergyfactor,and Burialfactor is basedon NUREG-1307, "Reporton WasteBurialCharges:Changesin Decommissioning WasteDisposalCostsat Low-Level                       Revision15 data.
WasteBurialFacilities,"
Note2: Mathematical        wasperformed rounding            duringthedevelopment                 calculations.
of thesupporting

Attachment 2 L-13-033 Decommissioning   FundingStatusReport- BeaverValleyPowerStation,UnitNo.2 Page1 of 3 ThisreportreflectsFirstEnergy  Corp.'sconsolidated  shareof ownershipinterestin BeaverValleyPowerStation,UnitNo.2, as of December         31,2012.
: 1. The minimumdecommissioning       fundestimate, pursuant  to 10 CFR50.75(b)      and(c)
(seeSchedule   1):
OhioEdisonCompany                                        $ 11 0 , 0 1,71 1 0 TheToledoEdisonCompany                                      92,747,572 FirstEnergy NuclearGeneration,   LLC                      305,162,878 FirstEnergyConsolidated              $507,927,560
: 2. The amountaccumulated     in external trustfundsas of December    31,2012:
After-Tax OhioEdisonCompany                                        $ 75,574,753 TheToledoEdisonCompany                                      86,826,422 FirstEnergy NuclearGeneration,   LLC                       157,794330 FirstEnergy Consolidated             $320,196,005
: 3. A schedule  of the annualamountsoverthe numberof yearsremaining         to be collectedfrom ratepayers:
AmountRemaining                                       $0 Numberof yearsto collect                                0
: 4. The assumptions   usedregarding   ratesof escalation in decommissioning   costs, ratesof earningson decommissioning     funds,and ratesof other factors used    in fundingprojections:
Consolidated  Ownership   Interestin Unit              100o/o "Real"Rateof ReturnthroughDismantlement                2.0Ao/o Yearof FinalDismantlement                              2054 Yearof LicenseTermination                              2047 5 . Thereare no contractsuponwhichthe owners/licensees       are relyingpursuantto 10 CFR50.75(eX1Xv).
6 . Therehasbeenno modification     to the currentmethodof providing  decommissioning fundingassurance   sincethe lastsubmittedreport.
L-13-033 Page2 of 3
: 7. Therehavebeenno materialchangesto the applicable trustagreement(s)sincethe lastsubmittedreport.
: 8. Mathematical roundingwas performed duringthe developmentof the supporting calculations.

Attachment  2 L-13-033 Page3 of 3 Schedule1 FIRSTENERGY      CORP.
Calculation of MinimumFinancial    Assurance     Amount December   31,2012 BEAVERVALLEYPOWERSTATION,UNITNO.2 Pennsvlvania   Regions Labor(L) = Northeast Energy(E)= National WasteBurial(B)= Generic For PWRUnit Adjustment                           Escalation Factor'          Ratio               Factof
[=            2.547           0.65                1.656 f=            2.632           0 . 13              0.342
                           $=          13.885            0.22                3.055 PWREscalation     Factor=                                                    5.053 BaseAmountfor PWRbetween1200MWtand3400MWt= ($75m+ 0.0088P)
(P = powerlevelin megawatts      thermal= 2900)
($ZS+ 0.0088(2900))     million=                                         $100,520,000 Escalated  Amountfor unit2=
100,520,000              x              5.053                                           $507,927,560 Owner/Licensee                       Ownership ffipany2                               21.660/o     $ 11 0 , 0 1,71 1 0 TheToledoEdisonCompany2                18.260/o       $92,747,572 FirstEnergy  NuclearGeneration, LLC'                                   60.08%       $305,162,878 TotalFirstEnergy   Consolidated2                    $507,927,560 datausedto developLaborfactor,actual Note1: Actualfourthquarter2012Bureauof LaborStatistics December2012Bureauof LaborStatistics datausedto developEnergyfactor,and Burialfactoris basedon NUREG-1307,    "Reporton WasteBurialCharges:Changes                      Waste in Decommissioning DisposalCostsat Low-Level                     Revision WasteBurialFacilities,"        15data.
Note2: Mathematical        wasperformed rounding             duringthedevelopment                  calculations.
of thesupporting

Attachment  3 L-13-033 Decommissioning   FundingStatusReport- Davis-Besse       NuclearPowerStation Page1 of 2 ThisreportreflectsFirstEnergy  Corp.'sconsolidated shareof ownership     interestin Davis-Besse   NuclearPowerStationas of December     31,2012.
: 1. The minimumdecommissioning      fundestimate,  pursuant   to 10 CFR50.75(b)and(c)
(seeSchedule   1):
FirstEnergy NuclearGeneration,  LLC                       $495,355,574
: 2. Theamountaccumulated      in externaltrustfundsas of December      31,2A12:
After-Tax FirstEnergy NuclearGeneration,  LLC                       $478,270,692
: 3. A scheduleof the annualamountsoverthe numberof yearsremaining            to be collectedfrom ratepayers:
AmountRemaining                                        $0 Numberof yearsto collect                                 0
: 4. The assumptions   usedregarding  ratesof escalation  in decommissioning    costs, ratesof earningson decommissioning    funds,and ratesof otherfactorsusedin fundingprojections:
Consolidated  Ownership  Interestin Unit                100%
                    "Real"Rateof ReturnthroughDismantlement                 2.00o/o Yearof FinalDismantlement                               2024 Yearof LicenseTermination                               2017 5 . Thereare no contractsuponwhichthe owners/licensees        are relyingpursuantto 10 CFR50.75(eX1Xv).
6 . Therehasbeenno modification    to the currentmethodof providing     decommissioning fundingassurance   sincethe lastsubmitted report.
7 . Therehavebeenno materialchangesto the applicable        trustagreement(s)   sincethe lastsubmittedreport.
8 . Mathematical  rounding was performed   duringthe development    of the supporting calculations.
L-13-033 Page2 of 2 Schedule1 FIRSTENERGY       CORP.
Calculation of MinimumFinancial     Assurance    Amount December31, 2012 DAVIS.BESSE    NUCLEARPOWERSTATION Ohio Rgqions Labor(L) = Midwest Energy(E)= National WasteBurial(B)= Generic For PWRUnit Adjustment                           Escalation Factor'          Ratio            Factof l_=          2.411            0.65             1.567 f=           2.632            0.13             0.342
                           $=          13.885            0.22             3.055 PWREscalation     Factor=                                                4.964 BaseAmountforPWRbetween1200MWtand3400MWt= ($75m+ 0.0088P)
(P = powerlevelin megawatts     thermal= 2817)
($ZS+ 0.0088(2817))    million=                                       $ 99,789,600 Escalated Amountfor unit2=
99,789,600              x             4.964                                           $495,355,574 Owner/Licensee                     Ownership FirstEnergy  Nuclear Generation,  LLC                     100.00% $495,355,574 datausedto developLaborfactor,actual Note1: Actualfourthquarter2012Bureauof LaborStatistics December2012Bureauof LaborStatistics  datausedto developEnergyfactor,and Burialfactoris basedon NUREG-1307,    "Reporton WasteBurialCharges:Changesin Decommissioning   Waste DisposalCostsat Low-Level                     Revision WasteBurialFacilities,"      15  data.
Note2: Mathematical roundingwasperformed duringthe development                calculations.
of the supporting

Attachment  4 L-13-033 Decommissioning  FundingStatusReport- PerryNuclearPowerPlant Page1 of 3 ThisreportreflectsFirstEnergy Corp.'sconsolidated  shareof ownershipinterestin PerryNuclearPowerPlantas of December31, 2012.
: 1. The minimumdecommissioning      fundestimate,  pursuant   to 10 CFR50.75(b)   and(c)
(seeSchedule  1):
OhioEdisonCompany                                         $ 85,492,422 FirstEnergyNuclearGeneration,   LLC                        594,097,578 FirstEnergy Consolidated
: 2. Theamountaccumulated     in external trustfundsas of December      31,2012:
After-Tax OhioEdisonCompany                                         $ 65,164,574 FirstEnergyNuclearGeneration,   LLC                        397,213.503 FirstEnergy Consolidated               $462,378,W7
: 3. A scheduleof the annualamountsoverthe numberof yearsremaining           to be collectedfromratepayers:
AmountRemaining                                        $0 Numberof yearsto collect                                0
: 4. The assumptions   usedregarding  ratesof escalation  in decommissioning   costs, ratesof earningson decommissioning    funds,and ratesof otherfactorsusedin fundingprojections:
Consolidated Ownership   Interestin Unit               100%
                    "Real"Rateof ReturnthroughDismantlement                2.00%
Yearof FinalDismantlement                              2033 Yearof LicenseTermination                              2026 5 . Thereare no contractsuponwhichthe owners/ficensees        are relyingpursuantto 10 CFR50.75(eX1Xv).
6 . Therehasbeenno modification    to the currentmethodof providing    decommissioning fundingassurance  sincethe lastsubmitted  report.
7 . Therehavebeenno materialchangesto the applicable        trustagreement(s)  sincethe lastsubmittedreport.
L-13-033 Page2 of 3 8 . FirstEnergyNuclearOperating   Company(FENOC)recognizes      thata shortfallexists for FirstEnergy NuclearGeneration,   LLC,whenthe existing trustbalances   and assumedearningsarecompared      withthe NRCformulaamountcalculated      in ltem1, above.Whenthe PerryNuclearPowerPlantportionof an existing$95million ParentGuarantee                               the remaining is includedin the calculation,            shortfall is
    $12,319,654. To resolvethe shortfall,FENOCwillobtaina ParentGuarantee       in accordance with10 CFR50.75(bX2)     and(bX3)within90 daysof the dateof this submittal.
9 . Mathematical roundingwas performed    duringthe development  of the supporting calculations.

Attachment 4 L-13-033 Page3 of 3 Schedule1 FIRSTENERGY        CORP.
Calculation of MinimumFinancial      Assurance   Amount December     31, 2012 PERRYNUCLEARPOWERPLANT Ohio Resions Labor(L)= Midwest Energy(E)= National WasteBurial(B)= Generic For BWRUnit Adjustment                           Escalation Factor'                             Factof l_=         2.411             0.65             1.567 2.705             0.13             0.352 S=         14 . 16 0          0.22             3 . 11 5 BWREscalation    Factor=                                                 5.034 BaseAmountfor BWRgreaterthan3400MWt=                                  $135,000,000 Escalated Amountfor unit2=
135,000,000             x             5.034                                            $679,590,000 Owner/Licensee                     Ownership OhioEdisonCompany                   12.58o/o $ 85,492,422 FirstEnergyNuclear Generation, LLC                     87.42%         $594,097,578 TotalFirstEnergy  Consolidated                     $679,590,000 Note1: Actualfourthquarter2012Bureauof LaborStatistics datausedto developLaborfactor,actual December2012Bureauof LaborStatistics    datausedto developEnergyfactor,andBurialfactoris basedon NUREG-1307,    "Reporton WasteBurialCharges:Changesin Decommissioning     Waste DisposalCostsat Low-Level WasteBurialFacilities,"       15 Revision   data.
Note2: Mathematical roundingwasperformed   duringthedevelopmentof thesupporting calculations.}}