View source for NLS2015039, Submittal of Ninth Biennial Report on Financial Assurance for Decommissioning Funding

{{Adams
| number = ML15097A260
| issue date = 03/30/2015
| title = Submittal of Ninth Biennial Report on Financial Assurance for Decommissioning Funding
| author name = Shaw J
| author affiliation = Nebraska Public Power District (NPPD)
| addressee name = 
| addressee affiliation = NRC/Document Control Desk, NRC/NRR
| docket = 05000298
| license number = DPR-046
| contact person = 
| case reference number = NLS2015039
| document type = Decommissioning Funding Plan DKTs 30, 40, 50, 70, Financial Assurance Document, Letter type:NLS
| page count = 4
}}

=Text=
{{#Wiki_filter:H Nebraska Public Power District Always there when you need us NLS2015039                                                                                   50.75(f)(1)
March 30, 2015 U.S. Nuclear Regulatory Commission Attention: Document Control Desk Washington, D.C. 20555-0001

==Subject:==
Decommissioning Funding Cooper Nuclear Station, Docket No. 50-298, DPR-46

==Dear Sir or Madam:==

The purpose of this letter is to provide Nebraska Public Power District's Ninth Biennial Report on Financial Assurance for Decommissioning for Cooper Nuclear Station in accordance with 10 CFR 50.75(f)(1), Reporting and Recordkeeping for Decommissioning Planning. The enclosed report contains the amount of decommissioning funds estimated to be required pursuant to 10 CFR 50.75(b) and (c), the amount accumulated to the end of the calendar year preceding the date of the report, a schedule of the annual amounts remaining to be collected if needed, the assumptions used regarding rates of escalation in decommissioning costs, and the rate of earnings on decommissioning funds.
This letter does not contain commitments.
Should you have any questions concerning this matter, please contact me at (402) 825-2788.
Sincerely,
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/jo

==Enclosure:==
Ninth Biennial Report on Financial Assurance for Decommissioning in Accordance with 10 CFR 50.75(0(1) cc: Regional Administrator w/enclosure                             Cooper Project Manager w/enclosure USNRC - Region IV                                              USNRC - NRR Project Directorate IV-1 Senior Resident Inspector w/enclosure                          NPG Distribution w/o enclosure USNRC - CNS CNS Records w/enclosure COOPER NUCLEAR STATION AoO/
P.O. Box 98 / Brownville, NE 68321-0098 Telephone: (402) 825-3811 / Fax: (402) 825-5211 www.nppd.com

OF NLS2015039 Enclosure Page 1 of 3 NEBRASKA PUBLIC POWER DISTRICT Ninth Biennial Report on Financial Assurance for Decommissioning in Accordance with 10 CFR 50.75(f)(1)

NEBRASKA PUBLIC POWER DISTRICT Ninth Biennial Report on Financial Assurance for Decommissioning In Accordance with 10 CFR 50.75(f)(1)
Date:       March 18, 2015 Station: Cooper Nuclear Station Owner/licensee making the report: Nebraska Public Power District Nebraska Public Power District (the "District") is a public corporation and political subdivision of the state of Nebraska. The District has the power and is required to fix, establish, and collect adequate rates and other charges for electrical energy and any and all commodities or services sold or furnished by it. The District is accordingly authorized to establish its own rates and other charges through which it can recover its cost of service. The District is governed by an 11-member Board of Directors who are popularly elected from the District's chartered territory. The Board of Directors is the rate making authority for the District.
Percentage Ownership: 100 10 CFR 50.75(b) & (c) Decommissioning Estimate (2014 Dollars): $633,277,0001 Decommissioning Fund 2 Total as of 12/31/2014: $565,543,636 Schedule of Future Annual Fund             3     Projected Earnings and the NRC Minimum Decommissioning Cost in Constant 2014 dollars Projected Earnings Credit Funding                Applying                                    NRC Beginning              Funding             Requirement            Approved Real            Ending             Minimum Year           Balance            Contribution          Year-Beginning          Rate of Return          Balance           2014 Dollars 2015          $565,543,636                     -                          0          $14,138,591       $579,682,227        $633,277,000 2016          $579,682,227                     -                          0          $14,492,056       $594,174,283        $633,277,000 2017          $594,174,283                     -                          0          $14,854,357       $609,028,640        $633,277,000 2018          $609,028,640                     -                          0          $15,225,716       $624,254,356        $633,277,000 2019          $624,254,356                     -                          0          $15,606,359       $639,860,715        $633,277,000 2020          $639,860,715                     -                          0          $15,996,518       $655,857,232        $633,277,000 2021          $655,857,232                     -                          0          $16,396,431       $672,253,663        $633,277,000 1 This updated estimate is based upon NRC decommissioning minimum certification escalation requirements in 10 CFR 50.75(c)(1) and (2) and guidance per NUREG 1307 for a BWR the size (2,419 MW thermal) of Cooper Nuclear Station. The calculation utilizes the Combination of Compact-Affiliated and Non-Compact Facility generic waste burial factor in Revision 15 of NUREG 1307 and Labor (final) and Energy (preliminary) escalation factors derived from December 2014 Midwest regional data of the U.S. Department of Labor Bureau of Labor Statistics. (This is the same figure as was derived for the 2013 funding status report. We note that the escalation of the Labor factor, and the de-escalation of the Energy factor, cancelled each other out using the NRC formula. And coupled with the use of the Revision 15, NUREG-1 307, waste figure (as contemplated by RIS 2014-12, "Decommissioning Fund Status Report Calculations -
Update to Low-Level Waste Burial Charge Information", October 14, 2014), the figures are the same.
2 This is the total amount (market value) in the external sinking fund (as described in 10 CFR 50.75) to cover the costs of NRC-defined decommissioning.
These figures will be recalculated on an annual basis in accordance with 10 CFR 50.75 (b) and (c). The above amounts reflect the current projected annual contributions (including fund earnings), as necessary, to fully fund the decommissioning trust by the end of the operating license (license expiration January 18, 2034), and taking into account a pro rata credit during the dismantlement period (recognizing both cash expenditures and earnings) over the first seven years after shutdown on a constant dollar basis (see 10 CFR 50.75(e)(1 )(ii)). Please note that all prior submissions by the District in accordance with 10 CFR 50.75(f)(1) have been provided on a nominal dollar basis. This change is responsive to RAI #3 included in a May 23, 2013 email from Lynnea Wilkins, NRC Project Manager.
I

Projected Earnings Credit Funding              Applying                                    NRC Beginning             Funding           Requirement         Approved Real              Ending            Minimum Year          Balance           Contribution        Year-Beginning       Rate of Return            Balance           2014 Dollars 2022         $672,253,663                                          0          $16,806,342         $689,060,005       $633,277,000 2023         $689,060,005                                          0          $17,226,500         $706,286,505       $633,277,000 2024         $706,286,505                                          0          $17,657,163         $723,943,668       $633,277,000 2025         $723,943,668                                          0          $18,098,592         $742,042,259       $633,277,000 2026         $742,042,259                                          0          $18,551,056         $760,593,316       $633,277,000 2027         $760,593,316                                          0          $19,014,833         $779,608,149       $633,277,000 2028         $779,608,149                   -                      0          $19,490,204         $799,098,352       $633,277,000 2029         $799,098,352                   -                      0          $19,977,459         $819,075,811       $633,277,000 2030         $819,075,811                   -                      0          $20,476,895         $839,552,706       $633,277,000 2031         $839,552,706                   -                      0          $20,988,818         $860,541,524       $633,277,000 2032         $860,541,524                   -                      0          $21,513,538         $882,055,062       $633,277,000 2033         $882,055,062                   -                      0          $22,051,377         $904,106,439       $633,277,000 2034         $904,106,439                   -            $90,468,142          $20,340,957         $833,979,254 2035         $833,979,254                   -            $90,468,143          $18,587,778         $762,098,889 2036         $762,098,889                   -            $90,468,143          $16,790,769         $688,421,515 2037         $688,421,515                   -            $90,468,143          $14,948,834         $612,902,206 2038         $612,902,206                   -            $90,468,143          $13,060,852         $535,494,914 2039         $535,494,914                   -            $90,468,143          $11,125,669         $456,152,441 2040         $456,152,441                   -            $90,468,143            $9,142,107        $374,826,405 Rate Assumptions Rates of escalation used in estimating future decommissioning costs
* 3%
4 Rates of Earnings on Decommissioning Funds Post-tax
* 5.5%
Contracts Relied Upon to Demonstrate Decommissioning Funding Assurance [50.75(e) (1) (v)]: None Modifications to the District's Current Method of Providing Financial Assurance: None Material Changes to Decommissioning Trust Agreement: None NOTE 1: The District continues to maintain its Decommissioning Trust Fund investments in fixed income securities as required by Nebraska State Statutes.
The assumed annual real rate of return is 2.50 percent. The District's Board of Directors (as the licensee's rate setting authority) has approved this assumption for the decommissioning funding plan for Cooper Nuclear Station through the adoption of a Board Resolution, dated June 13, 2008, as part of its official business. There has been no change to that Board Resolution, which was submitted as part of the July 14, 2011, RAI response.
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