ML18092A080

Decommissioning Funding Status Report

ML18092A080
Person / Time
Site:	Millstone
Issue date:	03/21/2018
From:	Stoddard D Dominion Energy Nuclear Connecticut
To:	Document Control Desk, Office of Nuclear Reactor Regulation
References
18-090
Download: ML18092A080 (6)

Text

Dominion Energy Nuclear Connecticut, Inc.

5000 Dominion Boulevard, Glen Allen, VA 23060 ~ Dominion Dominion Energy.com March 21, 2018  :;iiii"' Energy United States Nuclear Regulatory Commission Serial No.18-090 Attenticm: Document Control Desk NRA/TJS Rev. 1

• Washington, D. C. 20555-0001 Docket No. 50-245 License No. DPR-21 DOMINIION ENERGY NUCLEAR CONNECTICUT, INC.

MILLS':fONE POWER STATION UNIT 1 DECOMMISSIONING FUNDING STATUS REPORT Pursuant to 10 CFR 50.75(f)(1) and 10 CFR 50.82(a)(8)(v)-(vii), Dominion Energy Nuclear Connecticut, Inc. (DENC), is providing this report on the status of decommissioning funding for Millstone Power Station Unit 1 (MPS1).

Attachment 1 provides the following information for MPS1:

Table I - Decommissioning Funding Status Report for MPS1 Summary Information as of December 31, 2017 Table II - Decommissioning Funding Status Report for MPS1 Annual Cash Flow Analysis Starting January 1, 2018 through End of Decommissioning The following information is provided in support and as part of this filing:

1. The escalation of decommissioning costs from the Cost Study's 2014 dollars to 2018 dollars is 1.52% and is based upon the average of CPI-U rates for that pe:riod. The mnemonic is "FCPIU.US CPI: Urban Consumer - All Items, (Index 19182-84=100, SA)."

2. The escalation rate of decommissioning costs, shown in Table II is 0% based on assuming a 2% Real Rate of Return.

3. The growth rate on Trust Funds is the allowed 2% Real Rate of Return over the escalation rate.

4. N~> rate regulatory authority citation for MPS1 is referenced because MPS1 is a m13rchant unit.

5. There are no contracts upon which DENC is relying under paragraph 10 CFR 50.75(e)(1)(v) and there were no modifications to the current method of providing financial assurance since the last submitted report.

6. There are no annual funding amounts for MPS1.

7. Trust Fund balances shown in this report are market value and after-tax on realized gains and losses. The Trust Fund balances have not been adjusted for unrealized gain or loss positions that are not currently taxable.

8. Since the previous annual submittal on March 30, 2017 (Serial No.17-081, ADAMS Accession No. ML17094A518) for MPS1 there have been no material changes to the Trust agreements established for nuclear decommissioning. ) oO I

,Jt-1(,

Serial No.18-090 MPS1 Decommissioning Funding Status Report

• Page 2 of 2 Please contact Mr. Craig D. Sly at (804) 273-2784 if you have any questions or require

-" additional information.

SincerE~ly, a-~

D. G. Stoddard Senior Vice President and Chief Nuclear Officer Dominion Energy Nuclear Connecticut, Inc.

Attachment:

1. DE~commissioning Funding Status Report for MPS1, Summary Information as of DHcember 31, 2017 Commitments made in this letter: None cc: IJ. S. Nuclear Regulatory Commission Region I

~100 Renaissance Blvd, Suite 100 l<ing of Prussia, PA 19406-2713 Mr. T. H. Carter NRC Senior Project Manager (MPS1)

U.S. Nuclear Regulatory Commission Two White Flint North l,vlail Stop T-8 F5

• 11545 Rockville Pike J~ockville, MD 20852-2738 Ms. L. A. Kauffman U.S. Nuclear Regulatory Commission, Region I 2100 Renaissance Blvd Suite 100 King of Prussia, PA 19406-2713

Serial No.18-090 Docket No.50-245 Attachment 1 Decommissioning Funding Status Report for MPS1 Summary Information as of December 31, 2017 Millstone Power Station - Unit 1 Dominion Energy Nuclear Connecticut, Inc. {DENC)

Serial No.18-090 Docket No.50-245 Attachment 1 Page 1 of 3 Millstone Power Station Unit 1 Decommissioning Funding Status Report as of December 31, 2017 Table I Decommissioning Funding Status Report for MPS1 Summary Information as of December 31, 2017 10 CFR 50.82 (a)(S)(v)-(vii)

(In millions)

Decomrr1issionina Trust Fund Balances 10 CFR Reference l50.82(a)(8)(v)(AJ Iso.e2(a)(8J(vll)(AJ Fund Balance Type of Trusts Comments

$ 532.943 Unit 1 aualified fund balance Asof: 12/31/2017

$ - Unit 1 non-0ualified fund balance Asof: 12/31/2017

$ 0.889 Less costs incurred but not vet billed to Trust Actual Cost in: 2017 Dollars

$ 532.054 Adiusted decommissionina fund balance As of: 12/31/2017 Other Financial Assurance Methods Beim:1 Relied Ucon 10 CFR Reference l50.82(a)(BJ(v)(AJ I None Prior Years Decommissioning Expenditures 10 CFR Reference l50.82(a)(BJ(v)(A) I Total License Term Scent Fuel Mamt Site Restoration Comments

$ 3.874 $ 0.495 $ 3.379 $ - 2017 Cost in: 2017 Dollars

$ 87.106 $ 47.801 $ 39.305 $ - 2001-2016 Cost in: As-Scent Dollars

$ 90.980 $ 48.296 $ 42.684 $ - Total Prior Year in: As-Scent Dollars Prior Year Decommissioning Expenditures Variance to Estimated Cost 10 CFR Reference l50.82(a)(BJ(v)(BJ I Tot'al License Term Scent Fuel Mamt Site Restoration Comments

$ 3.873 $ - $ - $ - Actual Cost in 2017 Dollars

$ 4.968 $ - $ - $ - NRCAuth$ in 2017 Dollars

$ (1.094) $ - $ - $ -

Variance: Underrun to NRC Authorized Expenditures Remaining Decommissioning Estimated Cost 10 CFR Reference l50.82(a)(B)(v)(BJ I 50.82(a)(BJ(vll)(B)

Total License Scent Fuel Mamt I Site Restoration Comments

$ 2,92.218 $ 296.486 $ 73.770 $ 21.962 Estimate in : 2018 Dollars Decommissioning Criteria Upon Which the Estimate is Based 10 CFR Reference l50.82(a)(B){v)(B) I SAFSTOR Any Modification To Method of Providing Financial Assurance 10 CFR Reference l50.82(a)(BJ(v)(C) I Noi1e Any Material Changes To Tru!:;t Agreement Since Previous Report 10 CFR Reference l50.82(a)(BJ(v)(D) I Noue Need Fo,r Additional Financial Assurance 10 CFR Reference l50.82(a)(B)(vl) l50.82(a)(B)(vll)(CJ None See Annual Cash Flow Analysis in Table II Inputs to Remaining Cost and Funding Analysis I I 2018 Start vear of Remainina Cost and Funding analvsis 1.5.!% Escalate study dollars from Study Year to Start Year of Analysis usina an averai:ie of CPI rates 0.00% Escalation rate 2018 & Beyond 2.00% Fund arowth rate 2018 & Beyond (Reflects NRC allowed 2% Real Rate of Return)

Projected annual exoenditures - see Annual Cash Flow Analysis in Table II Notes: Table I

1) Previous decommissioning expenditures represent the withdrawals from the nuclear di~commissioning trusts made by Dominion Energy Nuclear Connecticut, Inc. These expenditures do not include the withdrawals made by the former owners of MPS1.

2) Expenditures include. withdrawals for spent fuel management, consistent with DEN C's. previous notices to the NRC, as well as allowed ordinary administrative costs.

3) 2017 NRC Authorized expenditures of $4.968 million are based on $5 million (rounded) in 2017 dollars as described*in DENC's submittal dated August 22, 2017 (ML17240A170).

Serial No.18-090 Docket No.50-245 Attachment 1 Page 2 of 3 Millstone Power Station Unit 1 Decommissioning Funding Status Report as of December 31, 2017 Table II Decommissioning Funding Status Report for M_PS1 Ann1;1a1 Cash Flow Analysis Starting January 1, 2018 through End of De~ommissioning 10 CFR 50.82 (a)(8)(v)-(vii)

• (In millions)

Column 1 Column 2 Column 3 Column 4 Column 5 Column 6 Column 7 Beginning Earnings Remaining Remaining Remaining Rema,lnlng End of on License Tennlnatlon Spent Fuel Mgmt Site Restoration SAFSTOR of Year Trust Funds Expenditures Expenditures Expenditures Expenditures Year Year Balance (Reflects 2% RRoR) (Reflects 0% Esc) (Reflects 0% Esc) (Reflects 0% Esc) (Reflects 0% Esc) Balance 2018 $ 532.054 $ 10.590 $ 1.105 $ 3.965 $ - $ 5.070 $ 537.574 2019 $ 537.574 $ 10.705 $ 1.105 $ 3.548 $ - $ 4.653 $ 543.626 2020 $ 543.626 $ 10.826 $ 1.105 $ 3.548 $ - $ 4.653 $ 549.799 2021 $ 549.799 $ 10.953 $ 1.618 $ 2.703 $ - $ 4.321 $ 556.431 2022 $ 556.431 $ 11.088 $ 1.618 $ 2.468 $ - $ 4.086 $ 563.433 2023 $ 563.433 $ 11.228 $ 1.618 $ 2.468 $ - $ 4.086 $ 570.575 2024 $ 570.575 $ 11.371 $ 1.618 $ 2.468 $ - $ 4.086 $ 577.860 2025 $ 577.860 $ 11.458 $ 7.102 $ 2.859 $ - $ 9.961 $ 579.356 2026 $ 579.356 $ 11.544 $ 1.618 $ 2.703 $ - $ 4.321 $ 586.579 2027 $ 586.579 $ 11.688 $ 1.618 $ 2.735 $ - $ 4.353 $ 593.914 2028 $ 593.914 $ 11.817 $ 1.618 $ 4.479 $ - $ 6.097 $ 599.635 2029 $ 599.635 $ 11.935 $ 1.618 $ 4.193 $ - $ 5.811 $ 605.758 2030 $ 605.758 $ 12.074 $ 1.618 $ 2.468 $ - $ 4.086 $ 613.747 2031 $ 613.747 $ 12.232 $ 1.618 $ 2.703 $ - $ 4.321 $ 621.657 2032 $ 621.657 $ 12.392 $ 1.618 $ 2.468 $ - $ 4.086 $ 629.964 2033 $ 629.964 $ 12.558 $ 1.618 $ 2.468 $ - $ 4.086 $ 638.437 2034 $ 638.437 $ 12.728 $ 1.618 $ 2.468 $ - $ 4.086 $ 647.079 2035 $ 647.079 $ 12.894 $ 2.271 $ 2.468 $ . - $ . 4.739 $ 655.234 2036 $ 655.234 $ 13.061 $ 1.618 $ 2.703 $ - $ 4.321 $ 663.975 2037 $ 663.975 $ 13.239 $ 1.618 $ 2.468 $ - $ 4.086 $ 673.128 2038 $ 673.128 $ 13.422 $ 1.618 $ 2.468 $ - $ 4.086 $ 682.464 2039 $ 682.464 $ 13.608 $ 1.618 $ 2.468 $ - $ 4.086 $ 691.986 2040 $ 691.986 $ 13.799 $ 1.618 $ 2.468 $ - $ 4.086 $ 701.699 2041 $ 701.699 $ 13.993 $ 1.618 $ 2.468 $ - $ 4.086 $ 711.607 2042 $ 711.607 $ 14.191 $ 1.618 $ 2.468 $ - $ 4.086 $ 721.712 2043 $ 721.712 $" 14.381 $ 2.855 $ 2.468 $ - $ 5.323 $ 730.771 2044 $ 730.771 $ 14.498 $ 1{094 $ 0.615 $ - $ 11.709 $ 733.560 2045 $ 733.560 $ 14.631 $ 4.057 $ - $ - $ 4.057 $ 744.134 2046 $ 744.134 $ 14.868 $ 1.471 $ - $ - $ 1.471 $ 757.530 2047 $ 757.530 $ 15.136 $ 1.471 $ - $ - $ 1.471 $ 771.195 2048 $ 771.195 $ 15.397 $ 2.658 $ - $ - $ 2.658 $ 783.935 2049 $ 783.935 $ 15.084 $ 59.505 $ - $ - $ 59.505 $ 739.513 2050 $ 739.513 $ 13.960 $ 82.994 $ - $ - $ 82.994 $ 670.479 2051 $ 670.479 $ 12.637 $ 77.271 $ - $ - $ 77.271 $ 605.844 2052 $ 605.844 $ 12.104 $ 1.252 $ - $ - $ 1.252 $ 616.697 2053 $ 616.697 $ 12.118 $ 0.108 $ - $ 21.483 $ 21.591 $ 607.224 2054 $ 607.224 $ 12.140 $ 0.040 $ - $ 0.381 $ 0.421 $ 618.943 2055 $ 618.943 $" 12.378 $ - $ - $ 0.098 $ 0.098 $ 631.223 2056 $ 631.223 $ 12.624 $ - $ - $ - $ - $ 643.848 2057 $ 643.848 $ 12.877 $ - $ - $ - $ - $ 656.725 2058 $ 656.725 $ 13.134 $ - $ - $ - $ - $ 669.859 2059 $ 669.859 $ 13.397 $ - $ - $ - $ - $ 683.257 2060 $ 683.257 $ 13.665 $ - $ - $ - $ - $ 696.922 2061 $ 696.922 $ 13.938 $ - $ - $ - $ - $ 710.860 2062 $ 710.860 $ 14.217 $ - $ - $ - $ - $ 725.077 2063 $ 725.077 $ 14.502 $ - $ - $ - $ - $ 739.579 2064 $ 739.579 $ 14.792 $ - $ - $ - $ - $ 754.370 2065 $ 754.370 $ 15.087 $ - $ - $ - $ - $ 769.458 2066 $ 769.458 $ 15.389 $ - $ - $ - $ - $ 784.847 2067 $ 784.847 $ 15.697 $ - $ - $ - $ - $ 800.544 2068 $ 800.544 $ 16.011 $ - $ - $ - $ - $ 816.555 2069 $ 816.555 $ 16.331 $ - $ - $ - $ - $ 832.886 2070 $ 832.886 $ 16.658 $ - $ - $ - $ - $ 849.544 2071 $ 849.544 $ 16.924 $ 6.660 $ - $ - $ 6.660 $ 859.808 Remaining *S In 2018 Dollars $ 296.486 $ 73.770 $ 21.962 $ 392.218 Est. Fund Balance (end of Decommissioning) (In Future $ escalated at 0.0% & 2.0% Real Rate of Return Fund Growth Rate) $ 859.808 Est. Fund Balance (end of Decommlsslonl_ng) discounted to 2018 Dollars Discount Rate = 2.00% $ 301.018

Serial No.18-090 Docket No.50-245 Attachment 1 Page 3 of 3 Table II Definitions:

Column 1:. Beginning of Year Balance:

Reflects the beginning-of-year Trust Fund balance at a 0.0% cost escalation rate and a 2.0% Real Rate of Return (RRoR) on fund growth.*

• Column 2: Earnings on Trust Funds:

Reflects earnings on funds r~rriainiilg in the trusf.

• A 2.0% RRoR Fund growth rate is used for 2018 through 2071 which reflects the allowed 2.0°/o

• RRoR over a 0.0%

• cost escalation rate. The annual 2.0% RRoR earnings are -calculated on the beginning balance less 50% of the projected annual expenditure for each year.

• Column 3: Remaining License Termination Expenditures:

Reflects the annual License Termination Plan cost portion at a 0.0% escalation rate from the Site Specific Estimate.

• Column 4: Remaining Spent Fuel Management Expenditures:

Reflects the annual Irradiated Fuel Management Plan cost portion at a 0.0% escalation rate from the Site Specific Estimate. This column provides information on the status of funding for managing irradiated fuel as required by 10 CFR 50.82(a)(8)(vii).

Column 5: Remaining Site Restoration Expenditures:

Reflects the annual Site Restoration Plan cost portion at a 0.0% escalation rate from the Site Specific Estimate.

Columr1 6: Remaining SAFSTOR Expenditures:

Reflects the annual SAFSTOR Decommissioning Plan cost at a 0.0% escalation rate from the Site Specific Cost Estimate.

• Column 7: End of Year Balance:

Reflects the end of year Trust Fund balance after all projected earnings are added and all projected expenditures are deducted for the year specified at a 0.0% escalation rate and a 2.0% RRoR on fund growth.

Tables. I and II General Notes: (Any minor differences in totals are ~ue to rounding.)

1) Trust Fund balance reflects market value on December 31, 2017, net of taxes on realized gains and losses.

2) The 2.0% RRoR is based on the rate allowed by 10 CFR 50.75(e)(1)(i) and 10 CFR 50.82(a)(8)(vi).

3) The funding method for providing financial assurance for decommissioning MPS1 remains prepayment. The cash flow analysis in Table II demonstrates that the amounts accumulated in the Trnst are sufficient, with credited earnings at a 2.0% RRoR, to cover the estimated cost of rc:1diological decommissioning, spent fuel management and site restoration.