ML17094A518

Submittal of Decommissioning Funding Status Report

ML17094A518
Person / Time
Site:	Millstone
Issue date:	03/30/2017
From:	Stoddard D Dominion Nuclear Connecticut
To:	Document Control Desk, Office of Nuclear Reactor Regulation
References
17-081
Download: ML17094A518 (6)

Text

{{#Wiki_filter:Dominion Nuclear Connecticut, Inc. 5000 Dominion Boulevard, Glen Allen, VA 23060 Dominion Web Address: www.dom.com

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 ,                                                March 30, 2017 United States Nuclear Regulatory Commission                         Serial No. 17-081 Attention: Document Control Desk                                    NRA/TJS      Rev. 0 Washington, D. C. 20555-0001                                        Docket No. 50-245' License No. DPR-21 DOMINION NUCLEAR CONNECTICUT, INC.

MILLSTONE 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 Nuclear Connecticut, Inc. (DNC) 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, 2016 Table II - Decommissioning Funding Status Report for MPS1 Annual Cash Flow Analysis Starting January 1, 2017 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 2017 dollars is 1.44% and is based upon the average of CPl-U rates for that period. The mnemonic is "FCPIU.US CPI: Urban Consumer - All Items, (Index 1982-84=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. No rate regulatory authority citation for MPS1 is referenced because MPS1 is a merchant unit.

5. There are no contracts upon which DNC . 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 24, 2016 (Serial No. 16-107, ADAMS Accession No. ML16085A346) for MPS1 there have been no material changes to the Trust agreements established for nuclear decommissioning.

Serial No. 17-081 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. Sincerely, D. G. Stoddard Senior Vice President and Chief Nuclear Officer Dominion Nuclear Connecticut, Inc.

Attachment:

1. Decommissioning Funding Status Report for MPS1 Summary Information as of December 31, 2016 Commitments made in this letter: None cc: U. S. Nuclear Regulatory Commission Region I 2100 Renaissance Blvd, Suite 100 King of Prussia, PA 19406-2713 Mr. T. H. Carter NRC Senior Project Manager (MPS1)

U.S. Nuclear Regulatory Commission Two White Flint North Mail Stop T-8 F5 11545 Rockville Pike Rockville, MD 20852-2738 Ms. L. A. Kauffman U.S. Nuclear Regulatory Commission, Region 1 2100 Renaissance Blvd Suite 100 King of Prussia, PA 19406-2713

Serial No. 17-081 Docket No.50-245 Attachment 1 Decommissioning Funding Status Report for MPS1 Summary Information as of December 31, 2016 Millstone Power Station - Unit 1 Dominion Nuclear Connecticut, Inc. (DNC)

Serial No. 17-081 Docket No.50-245 Attachment 1 Page 1 of 3 .~ Millstone Power Station Unit 1 Decommissioning Funding Status Report as of December 31, 2016 Table I Decommissioning Funding Status Report for MPS1 Summary Information as of December 31, 2016 10 CFR 50.82 (a)(8)(v)-(vii) (In millions) Decommissionina Trust Fund Balances 10 CFR Reference Is0.82(a)(B)(v)(A) Iso.s2(a)(B)(vll)(A) Fund Balance TVDe of Trusts Comments

   $       473.827 Unit 1 qualified fund balance                                       As of:                 12/31/2016
   $           -    Unit 1 non-aualified fund balance                                  As of:                 12/31/2016
   $          3.064 Less costs incurred but not vet billed to Trust                    Actual Cost in:          2016           Dollars
   $       470.763 Adiusted decommissionina fund balance                               As of:                 12/31/2016 Other Financial Assurance Methods Being Relied Upon                                 10 CFR Reference I50.82(a)(B)(v)(A)   I None Prior Years Decommissionina Expenditures                                             10 CFR Reference I50.82(a)(8)(v)(A)    I Total           License Term       Scent Fuel Mant        Site Restoration                            Comments
   $         5.208 $               1.248 $               3.960 $                 -     2016 Cost in:             2016           Dollars
   $        81.898 $             46.553 $             35.345 $                   -     2001-2015 Cost in:      As-Soent         Dollars
   $        87.106 $             47.801 $             39.305 $                   -     Total Prior Year in:    As-Spent         Dollars Prior Year Decommissioning Expenditures Variance to           Estimated Cost         10 CFR Reference l50.82(a)(8)(v)(B)   I Total           License Term       Spent Fuel Mant        Site Restoration                            Comments
   $         5.208 $                  -    $                -    $               -     Actual Cost in            2016           Dollars
   $         5.797 $                  -    $                -    $               -     NRCAuth$ in               2016           Dollars
   $         10.589 $                 -    $                -    $               -

Variance: Underrun to NRC Authorized Expenditures Remainina Decommissionina Estimated Cost 10 CFR Reference l50.82(a)(B)(v)(B) IS0.82(a)(B)(vll)(B) Total License Scent Fuel Mant Site Restoration Comments

   $       390.162 $            291.901 $             76.677     $          21.584 Estimate in :                 2017          Dollars Decommissioning Criteria Upon Which the Estimate is Based                           10 CFR Reference IS0.82(a)(B)(v)(B)   I SAFSTOR Anv Modification To Method of Providina Financial Assurance                         10 CFR Reference l50.82(a)(B)(v)(C)   I None Anv Material Chanaes To Trust Aareement Since Previous Report                       10 CFR Reference IS0.82(a)(B)(v)(D)   I None Need For Additional Financial Assurance                                             10 CFR Reference IS0.82(a)(8)(vl)      IS0.82(a)(B)(vll)(C)

None See Annual Cash Flow Analvsis in Table II Inputs to Remainina Cost and Fundina Analvsis I I 2017 Start vear of Remainina Cost and Fundina analvsis 1.44% Escalate studv dollars from Studv Year to Start Year of Analvsis usina an averaae of CPI rates 0.00% Escalation rate 2017 & Bevond 2.00% Fund arowth rate 2017 & Bevond {Reflects NRC allowed 2% Real Rate of Return) Projected annual exoenditures - see Annual Cash Flow Analvsis in Table II Notes: Table I

1) Previous decommissioning expenditures represent the withdrawals from the nuclear decommissioning trusts made by Dominion 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 DNC's previous notices to the NRC, as well as allowed ordinary administrative costs.

3) 2016 NRC Authorized expenditures of $5.797 million are based on $5.7 million (rounded) in 2015 dollars and escalated by 2.55% annually as described in DNC's submittal dated December 4, 2015 (ML15345A243).

Serial No. 17-081 Docket No.50-245 Attachment 1 Page 2 of 3 Millstone Power Station Unit 1 Decommissioning Funding Status Report as of December 31, 2016 Table II Decommissioning Funding Status Report for MPS1 Annual Cash Flow Analysis Starting January 1, 2017 through End of Decommissioning 10 CFR 50.82 (a)(8)(v)-{vii) On millions) Column 1 Column 2 Column 3 Column 4 Column 5 Column 6 Column 7 Beginning Earnings Remaining Remaining Remaining Remaining End of on License Tennlnatlon Spent Fuel Mgmt Site Restoration SAFSTOR of Year Trust Funds Expenditures Expenditures Expenditures Expenditures Year Year Balance (Reflects 2% RRoRl {Reflects 0% Escl (Reflects 0% Escl (Reflects 0% Escl (Reflects 0% Escl Balance 2017 $ 470.763 $ 9.360 $ 0.942 $ 4.539 $ - $ 5.481 $ 474.642 2018 $ 474.642 $ 9.448 $ 0.941 $ 3.502 $ - $ 4.443 $ 479.647 2019 $ 479.647 $ 9.549 $ 0.941 $ 3.503 $ - $ 4.444 $ 484.752 2020 $ 484.752 $ 9.651 $ 0.941 $ 3.502 $ - $ 4.443 $ 489.959 2021 $ 489.959 $ 9.757 $ 1.590 $ 2.656 $ - $ 4.247 $ 495.470 2022 $ 495.470 $ 9.869 $ 1.590 $ 2.425 $ - $ 4.016 $ 501.323 2023 $ 501.323 $ 9.986 $ 1.590 $ 2.425 $ - $ 4.016 $ 507.294 2024 $ 507.294 $ 10.106 $ 1.590 $ 2.425 $ - $ 4.016 $ 513.384 2025 $ 513.384 $ 10.170 $ 6.980 $ 2.810 $ - $ 9.790 $ 513.764 2026 $ 513.764 $ 10.233 $ 1.590 $ 2.656 $ - $ 4.247 $ 519.750 2027 $ 519.750 $ 10.352 $ 1.590 $ 2.688 $ - $ 4.278 $ 525.824 2028 $ 525.824 $ 10.457 $ 1.590 $ 4.402 $ - $ 5.992 $ 530.288 2029 $ 530.288 $ 10.549 $ 1.590 $ 4.121 $ - $ 5.711 $ 535.126 2030 $ 535.126 $ 10.662 $ 1.590 $ 2.425 $ - $ 4.016 $ 541.772 2031 $ 541.772 $ 10.793 $ 1.590 $ 2.656 $ - $ 4.247 $ 548.319 2032 $ 548.319 $ 10.926 $ 1.590 $ 2.425 $ - $ 4.016 $ 555.229 2033 $ 555.229 $ 11.064 $ 1.590 $ 2.425 $ - $ 4.016 $ 562.278 2034 $ 562.278 $ 11.205 $ 1.590 $ 2.425 $ - $ 4.016 $ 569.468 2035 $ 569.468 $ 11.343 $ 2.232 $ 2.425 $ - $ 4.657 $ 576.154 2036 $ 576.154 $ 11.481 $ 1.590 $ 2.656 $ - $ 4.247 $ 583.388 2037 $ 583.388 $ 11.628 $ 1.590 $ 2.425 $ - $ 4.016 $ 591.000 2038 $ 591.000 $ 11.780 $ 1.590 $ 2.425 $ - $ 4.016 $ 598.764 2039 $ 598.764 $ 11.935 $ 1.590 $ 2.425 $ - $ 4.016 $ 606.683 2040 $ 606.683 $ 12.094 $ 1.590 $ 2.425 $ - $ 4.016 $ 614.761 2041 $ 614.761 $ 12.255 $ 1.590 $ 2.425 $ - $ 4.016 $ 623.001 2042 $ 623.001 $ 12.420 $ 1.590 $ 2.425 $ - $ 4.016 $ 631.405 2043 $ 631.405 $ 12.576 $ 2.806 $ 2.425 $ - $ 5.231 $ 638.750 2044 $ 638.750 $ 12.660 $ 10.903 $ 0.604 $ - $ 11.507 $ 639.902 2045 $ 639.902 $ 12.758 $ 3.988 $ - $ - $ 3.988 $ 648.672 2046 $ 648.672 $ 12.959 $ 1.446 $ - $ - $ 1.446 $ 660.186 2047 $ 660.186 $ 13.189 $ 1.446 $ - $ - $ 1.446 $ 671.929 2048 $ 671.929 $ 13.412 $ 2.612 $ - $ - $ 2.612 $ 682.729 2049 $ 682.729 $ 13.070 $ 58.483 $ - $ - $ 58.483 $ 637.315 2050 $ 637.315 $ 11.931 $ 81.569 $ - $ - $ 81.569 $ 567.677 2051 $ 567.677 $ 10.594 $ 75.944 $ - $ - $ 75.944 $ 502.328 2052 $ 502.328 $ 10.034 $ 1.230 $ - $ - $ 1.230 $ 511.132 2053 $ 511.132 $ 10.010 $ 0.106 $ - $ 21.114 $ 21.220 $ 499.922 2054 $ 499.922 $ 9.994 $ 0.040 $ - $ 0.374 $ 0.414 $ 509.503 2055 $ 509.503 $ 10.189 $ - $ - $ 0.096 $ 0.096 $ 519.596 2056 $ 519.596 $ 10.392 $ - $ - $ - $ - $ 529.988 2057 $ 529.988 $ 10.600 $ - $ - $ - $ - $ 540.587 2058 $ 540.587 $ 10.812 $ - $ - $ - $ - $ 551.399 2059 $ 551.399 $ 11.028 $ - $ - $ - $ - $ 562.427 2060 $ 562.427 $ 11.249 $ - $ - $ - $ - $ 573.676 2061 $ 573.676 $ 11.474 $ - $ - $ - $ - $ 585.149 2062 $ 585.149 $ 11.703 $ - $ - $ - $ - $ 596.852 2063 $ 596.852 $ 11.937 $ - $ - $ - $ - $ 608.789 2064 $ 608.789 $ 12.176 $ - $ - $ - $ - $ 620.965 2065 $ 620.965 $ 12.419 $ - $ - $ - $ - $ 633.384 2066 $ 633.384 $ 12.668 $ - $ - $ - $ - $ 646.052 2067 $ 646.052 $ 12.921 $ - $ - $ - $ - $ 658.973 2068 $ 658.973 $ 13.179 $ - $ - $ - $ - $ 672.152 2069 $ 672.152 $ 13.443 $ - $ - $ - $ - $ 685.595 2070 $ 685.595 $ 13.712 $ - $ - $ - $ - $ 699.307 2071 $ 699.307 $ 13.921 $ 6.546 $ - $ - $ 6.546 $ 706.682 Remaining $In 2017 Dollars $ 291.901 $ 76.677 $ 21.584 $ 390.162 Est Fund Balance (end of Decommissioning) (in Future $escalated at 0.0% & 2.0% Real Rate of Return Fund Growth Rate) $ 706.682 Est. Fund Balance (end of Decommissioning) discounted to 2017 Dollars Discount Rate = 2.00% $ 242.558

Serial No. 17-081 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 remaining in the trust. A 2.0% RRoR Fund growth rate is used for 2017 through 2071 which reflects the allowed 2.0% 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. Column 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 due to rounding.)

1) Trust Fund balance reflects market value on December 31, 2016, 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 Trust are sufficient, with credited earnings at a 2.0% RRoR, to cover the estimated cost of radiological decommissioning, spent fuel management and site restoration.}}