View source for LR-N09-0074, Letter from Jeffrie Keenan of PSEG Nuclear L.L.C., NRC Decommissioning Funding Status Report for Salem, Hope Creek & Peach Bottom Generating Stations

{{Adams
| number = ML091000650
| issue date = 03/31/2009
| title = Letter from Jeffrie Keenan of PSEG Nuclear L.L.C., NRC Decommissioning Funding Status Report for Salem, Hope Creek & Peach Bottom Generating Stations
| author name = Keenan J
| author affiliation = PSEG Nuclear, LLC
| addressee name = 
| addressee affiliation = NRC/Document Control Desk, NRC/NRR
| docket = 05000272, 05000277, 05000278, 05000311, 05000354
| license number = DPR-044, DPR-056, DPR-070, DPR-075, NPF-057
| contact person = 
| case reference number = LR-N09-0074
| document type = Calculation, Decommissioning Funding Plan DKTs 30, 40, 50, 70, Letter type:LR, Status Report
| page count = 4
}}

=Text=
{{#Wiki_filter:PSEG Nuclear LLC P.O. Box 236,, Hancocks Bridge, NJ 08038-0236 0 PSEG NuclearL.L. C.
MAR 312009 LR-N09-0074 United States Nuclear Regulatory Commission Document Control Desk Washington, DC 20555 NRC DECOMMISSIONING FUNDING STATUS REPORT SALEM, HOPE CREEK AND PEACH BOTTOM GENERATING STATIONS DOCKET NOS. 50-272, 50-311, 50-354, 50-277, AND 50-278 FACILITY OPERATING LICENSE NOS. DPR-70, 75, NPF-57 AND DPR-44, 56 This letter submits the status report of the decommissioning funds for the subject facilities in accordance with 10CFR &sect;50.75(f)(1).
: 1. The minimum decommissioning fund estimate, pursuant to 10 CFR &sect;50.75 (b) and (c).
NRC Minimum Decommissioning Plant                               Funding Requirements (PSEG Nuclear Share) ($ Thousands)
Hope Creek                                  587,108 Salem Unit #1                               243,734 Salem Unit #2                               243,734 Peach Bottom Unit #2                        293,554 Peach Bottom Unit #3                        293,554 Total                                      1,661,684
: 2. Amount accumulated as of December 31, 2008.
The amount accumulated in both Qualified and Non-Qualified Trusts at December 31, 2008, for each respective Unit, is disclosed in the following Table:
($ Thousands)
Plant                      Qualified and Non-Qualified Total Hope Creek                                 301,865 Salem Unit #1                              187,371 Salem Unit #2                              175,853 Peach Bottom Unit #2                       159,382 Peach Bottom Unit #3                       162,546 Total                                      987,017 AiM
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~j A Document Control Desk                                                            MAR 312009 Page 2 LR-N09-0074
: 3. Annual amounts remaining to be collected as of December 31, 2008.
None 1
: 4. Assumptions used regarding escalation in decommissioning costs, rates of earnings on decommissioning funds, and rates of other factors used in funding projections.
For the purpose of determining if the NRC's minimum requirements are met, PSEG has calculated that the current fund balances and annual funding levels, together with earnings at a 2% annual rate of return, as permitted by 10CFR &sect;50.75(e)(1)(ii),
satisfy NRC's minimum funding assurance requirements.
: 5. Any contracts upon which the licensee is relying pursuant to 10 CFR &sect;50.75(e)(1)(v).
The licensee is not relying upon contracts in this regard.
: 6. Any modifications to a licensee's current method providing financial assurance occurring since the last submitted report.
As of December 31, 2008, PSEG Nuclear has prepaid its nuclear decommissioning liability. The calculation is supported in Appendix A. PSEG Nuclear is now employing the safe storage option. Consistent with 10 CFR &sect;50.75(e)(1)(i), PSEG Nuclear has developed a site-specific estimate.
: 7. Any material changes to trust agreements.
None.
Should you have any questions regarding this report, please contact me at 856-339-5429.
Sincerely, Appendix A 1 New Jersey Board of Public Utilities (BPU) decision dated July 9, 2003.

t.-) &#xfd;i Document Control Desk Page 3                                                               MAR 34 2009 LR-N09-0074 C      Mr. S. Collins, Administrator - Region I U. S. Nuclear Regulatory Commission 475 Allendale Road King of Prussia, PA 19406 U. S. Nuclear Regulatory Commission ATTN: Mr. Rick Ennis, Licensing Project Manager - Hope Creek/Salem Mail Stop 08B1 Washington, DC 20555-0001 USNRC Senior Resident Inspector - Salem (X24)
USNRC Senior Resident Inspector - Hope Creek (X24)
Mr. K. Tosch, Manager IV Bureau of Nuclear Engineering PO Box 415 Trenton, New Jersey 08625

APPENDIX A: Calculation of NRC Funding Requirements for Year 2008 Dollars in (000's)
Projected Value Remaining            Remaining               Decommissioning                 Fair Market Value           Projected Value           of External Fund Years to End            Years to            Funding Requirements                of External Fund           of External Fund                at Start Operating License                of Operating           start of               lAW 10CFR50.75              as of December 31, 2008             at EOL              of Decommissioning Station and Unit          Expiration Date                 License Life     Decommissioning                    (note 1)                                                  (note 2)                    (note 3)      Surplus (Shortfall)
* Hope Creek Unit No. 1               April 11, 2026               17.3                 60.8                             $587,108                       $301,865                $425,098                      $615,390         $28,282 Salem Unit No. 1                 August 13, 2016                  7.6                 51.1 -                           $243,734                       $187,371                $217,898                      $291,801         $48,067 Salem Unit No. 2                    April 18, 2020               11.3                 54.8                             $243,734                       $175,853                $219,971                      $296,756         $53,022 Peach Bottom Unit No. 2           August 8, 2033                 24.6                 68.1                             $293,554                       $159,382                $259,519                      $419,956        $126,402 Peach Bottom Unit No. 3               July 2, 2034               25.5                 69.0                             $293,554                       $162,546                $269,422                      $443,624        $150,070
                                                                                                                       $1,661,684                       $987,017              $1,391,908                    $2,067,526        $405,842 note 1:                 Amounts represent PSEG Nuclear's share of funding and are in year 2008 dollars.
note 2:                 Projected value of fund escalated at 2% compounded annually until license termination.
note 3:                 Projected value of fund escalated at 2% compounded from license termination until end of Safestor period less security and O&M. All Units assume 40 year Safestor + 3.5 years dismantlement.}}