ML21090A121

Financial Assurance for Decommissioning - 2021 Update

ML21090A121
Person / Time
Site:	South Texas
Issue date:	03/31/2021
From:	Harrison G South Texas
To:	Document Control Desk, Office of Nuclear Reactor Regulation
References
NOC-AE-21003791
Download: ML21090A121 (15)

Text

March 31, 2021 NOC-AE-21003791 File No.: D57 10 CFR 50.75 ATTN: Document Control Desk U. S. Nuclear Regulatory Commission Washington, DC 20555-0001 South Texas Project Units 1 and 2 Docket Nos. STN 50-498, STN 50-499 Financial Assurance for Decommissioning - 2021 Update Pursuant to 10 CFR 50.75(f)(1), STP Nuclear Operating Company (STPNOC) submits the attached status reports regarding funds available, effective December 31, 2020, for decommissioning South Texas Project Units 1 and 2. The data is assembled by the individual co-owners of the South Texas Project:

• NRG South Texas LP

• City Public Service Board of San Antonio

• City of Austin - Austin Energy.

The attached reports provide the following information for each co-owner:

• Estimated amount of decommissioning funds required

• Amount accumulated by December 31, 2020

• A schedule of the annual amounts remaining to be collected

• Assumptions for rates of escalation in decommissioning cost and for rates used in funding projections

• Contracts upon which the owners rely pursuant to 10 CFR 50.75(e)(1)(v)

• Modifications to method of providing financial fund assurance

• Material changes to trust agreements.

This letter contains no NRC commitments. If there are any questions, please contact either Tim Hammons at (361) 972-7347 or me at (361) 972-8074.

George Harrison Executive Vice President and Chief Financial Officer tjh Attachments:

1. South Texas Project Financial Assurance for Decommissioning 2021 Update - NRG South Texas LP

2. South Texas Project Financial Assurance for Decommissioning 2021 Update - City Public Service Board of San Antonio

3. South Texas Project Financial Assurance for Decommissioning 2021 Update - City of Austin

- Austin Energy STI: 35143985

NOC-AE-21003791 Page 2 of 2 cc:

Regional Administrator, Region IV U.S. Nuclear Regulatory Commission 1600 E. Lamar Boulevard Arlington, TX 76011-4511

ATTACHMENT 1 SOUTH TEXAS PROJECT FINANCIAL ASSURANCE FOR DECOMMISSIONING 2021 UPDATE NRG SOUTH TEXAS LP

Attachment 1 NOC-AE-21003791 Page 1 of 4 FINANCIAL ASSURANCE FOR DECOMMISSIONING NRG South Texas LP 13.2% Ownership of South Texas Project Unit 1 (Acquired from AEP)

Pursuant to 10 CFR 50.75(f)(1), each power reactor licensee is required to report to the NRC on a calendar year basis, beginning on March 31, 1999, and every two years thereafter, on the status of its decommissioning funding for each reactor or share of reactor it owns. The requested information is provided below.

1. Minimum decommissioning fund estimate Total Required: $53,393,601 pursuant to 10 CFR 50.75(b) and (c)1:

2. Amount accumulated at the end of the calendar Amount Accumulated2: $86,973,803 year preceding the date of the report for items included in 10 CFR 50.75(b) and (c):

3. Schedule of the annual amounts remaining to be Amount Remaining3: $0 collected for items in 10 CFR 50.75(b) and (c):

Number of Years to Collect: 26.65

4. Assumptions used regarding escalation in Escalation Rate4: 2.540%

decommissioning cost, rates of earnings on decommissioning funds, and rates of other Earnings Rate: 3.628%

factors used in funding projections:

5. Contracts upon which the licensee is relying None pursuant to 10 CFR 50.75(e)(1)(v):

6. Modifications to a licensees current method of None providing financial assurance occurring since the last submitted report:

7. Material changes to trust agreements: None

1. The NRC formulas in section 10 CFR 50.75(c) include only those decommissioning costs incurred by licensees to remove a facility or site safely from service and reduce residual radioactivity to levels that permit: (1) release of the property for unrestricted use and termination of the license or (2) release of the property under restricted conditions and termination of the license.

2. By Order dated October 10, 2008, in PUCT Docket No. 35772, NRG South Texas was granted approval to establish a separate spent nuclear fuel management (SNF) subaccount. By Order dated July 13, 2009, in PUCT Docket No.

36796, NRG South Texas was granted approval to establish a separate subaccount for the pre-shutdown disposal of large components. By Order dated October 7, 2013, NRG South Texas was granted approval to establish a separate subaccount for amounts recovered pursuant to a litigation settlement agreement with the United States government for certain onsite spent fuel storage and management expenses it has incurred and will incur as a result of the failure of the Department of Energy to provide for the offsite disposal of spent nuclear fuel. The amounts allocable to the subaccounts are not included in the reported amount. The reported amount includes funds accumulated based upon a site-specific study that includes license termination and other costs.

3. NRG estimates that the Trust is currently fully funded, based on the 2018 decommissioning cost study and updated escalation rates. Additional contributions ended December 31, 2008. If future estimates indicate that further funding may be required, NRG would be able to apply to the PUCT to seek further funding for NRC license termination costs through cost-of-service recovery authorized by Texas law.

4. Escalation and earnings rates were established by the PUCT in PUCT Tariff Control No. 41970.

Attachment 1 NOC-AE-21003791 Page 2 of 4 FINANCIAL ASSURANCE FOR DECOMMISSIONING NRG South Texas LP 30.8% Ownership of South Texas Project Unit 1 (Acquired from CNP)

Pursuant to 10 CFR 50.75(f)(1), each power reactor licensee is required to report to the NRC on a calendar year basis, beginning on March 31, 1999, and every two years thereafter, on the status of its decommissioning funding for each reactor or share of reactor it owns. The requested information is provided below.

1. Minimum decommissioning fund estimate Total Required: $124,585,069 pursuant to 10 CFR 50.75(b) and (c)1:

2. Amount accumulated at the end of the calendar Amount Accumulated2: $217,298,220 year preceding the date of the report for items included in 10 CFR 50.75(b) and (c):

3. Schedule of the annual amounts remaining to be Amount Remaining3: $0 collected for items in 10 CFR 50.75(b) and (c):

Number of Years to Collect: 26.65

4. Assumptions used regarding escalation in Escalation Rate4: 2.540%

decommissioning cost, rates of earnings on decommissioning funds, and rates of other Earnings Rate: 3.628%

factors used in funding projections:

5. Contracts upon which the licensee is relying None pursuant to 10 CFR 50.75(e)(1)(v):

6. Modifications to a licensees current method of None providing financial assurance occurring since the last submitted report:

7. Material changes to trust agreements: None

1. The NRC formulas in section 10 CFR 50.75(c) include only those decommissioning costs incurred by licensees to remove a facility or site safely from service and reduce residual radioactivity to levels that permit: (1) release of the property for unrestricted use and termination of the license or (2) release of the property under restricted conditions and termination of the license.

2. By Order dated October 10, 2008, in PUCT Docket No. 35772, NRG South Texas was granted approval to establish a separate spent nuclear fuel management (SNF) subaccount. By Order dated July 13, 2009, in PUCT Docket No.

36796, NRG South Texas was granted approval to establish a separate subaccount for the pre-shutdown disposal of large components. By Order dated October 7, 2013, NRG South Texas was granted approval to establish a separate subaccount for amounts recovered pursuant to a litigation settlement agreement with the United States government for certain onsite spent fuel storage and management expenses it has incurred and will incur as a result of the failure of the Department of Energy to provide for the offsite disposal of spent nuclear fuel. The amounts allocable to the subaccounts are not included in the reported amount. The reported amount includes funds accumulated based upon a site-specific study that includes license termination and other costs.

3. NRG estimates that the Trust is currently fully funded, based on the 2018 decommissioning cost study and updated escalation rates. Additional contributions ended December 31, 2008. If future estimates indicate that further funding may be required, NRG would be able to apply to the PUCT to seek further funding for NRC license termination costs through cost-of-service recovery authorized by Texas law.

4. Escalation and earnings rates were established by the PUCT in PUCT Tariff Control No. 41970.

Attachment 1 NOC-AE-21003791 Page 3 of 4 FINANCIAL ASSURANCE FOR DECOMMISSIONING NRG South Texas LP 13.2% Ownership of South Texas Project Unit 2 (Acquired from AEP)

Pursuant to 10 CFR 50.75(f)(1), each power reactor licensee is required to report to the NRC on a calendar year basis, beginning on March 31, 1999, and every two years thereafter, on the status of its decommissioning funding for each reactor or share of reactor it owns. The requested information is provided below.

1. Minimum decommissioning fund estimate Total Required: $53,393,601 pursuant to 10 CFR 50.75(b) and (c)1:

2. Amount accumulated at the end of the calendar Amount Accumulated2: $105,167,888 year preceding the date of the report for items included in 10 CFR 50.75(b) and (c):

3. Schedule of the annual amounts remaining to be Amount Remaining3: $0 collected for items in 10 CFR 50.75(b) and (c):

Number of Years to Collect: 27.98

4. Assumptions used regarding escalation in Escalation Rate4: 2.530%

decommissioning cost, rates of earnings on decommissioning funds, and rates of other Earnings Rate: 3.628%

factors used in funding projections:

5. Contracts upon which the licensee is relying None pursuant to 10 CFR 50.75(e)(1)(v):

6. Modifications to a licensees current method of None providing financial assurance occurring since the last submitted report:

7. Material changes to trust agreements: None

1. The NRC formulas in section 10 CFR 50.75(c) include only those decommissioning costs incurred by licensees to remove a facility or site safely from service and reduce residual radioactivity to levels that permit: (1) release of the property for unrestricted use and termination of the license or (2) release of the property under restricted conditions and termination of the license.

2. By Order dated October 10, 2008, in PUCT Docket No. 35772, NRG South Texas was granted approval to establish a separate spent nuclear fuel management (SNF) subaccount. By Order dated July 13, 2009, in PUCT Docket No.

36796, NRG South Texas was granted approval to establish a separate subaccount for the pre-shutdown disposal of large components. By Order dated October 7, 2013, NRG South Texas was granted approval to establish a separate subaccount for amounts recovered pursuant to a litigation settlement agreement with the United States government for certain onsite spent fuel storage and management expenses it has incurred and will incur as a result of the failure of the Department of Energy to provide for the offsite disposal of spent nuclear fuel. The amounts allocable to the subaccounts are not included in the reported amount. The reported amount includes funds accumulated based upon a site-specific study that includes license termination and other costs.

3. NRG estimates that the Trust is currently fully funded, based on the 2018 decommissioning cost study and updated escalation rates. Additional contributions ended December 31, 2008. If future estimates indicate that further funding may be required, NRG would be able to apply to the PUCT to seek further funding for NRC license termination costs through cost-of-service recovery authorized by Texas law.

4. Escalation and earnings rates were established by the PUCT in PUCT Tariff Control No. 41970.

Attachment 1 NOC-AE-21003791 Page 4 of 4 FINANCIAL ASSURANCE FOR DECOMMISSIONING NRG South Texas LP 30.8% Ownership of South Texas Project Unit 2 (Acquired from CNP)

Pursuant to 10 CFR 50.75(f)(1), each power reactor licensee is required to report to the NRC on a calendar year basis, beginning on March 31, 1999, and every two years thereafter, on the status of its decommissioning funding for each reactor or share of reactor it owns. The requested information is provided below.

1. Minimum decommissioning fund estimate Total Required: $124,585,069 pursuant to 10 CFR 50.75(b) and (c)1:

2. Amount accumulated at the end of the calendar Amount Accumulated2: $275,120,383 year preceding the date of the report for items included in 10 CFR 50.75(b) and (c):

3. Schedule of the annual amounts remaining to be Amount Remaining3: $0 collected for items in 10 CFR 50.75(b) and (c):

Number of Years to Collect: 27.98

4. Assumptions used regarding escalation in Escalation Rate4: 2.530%

decommissioning cost, rates of earnings on decommissioning funds, and rates of other Earnings Rate: 3.628%

factors used in funding projections:

5. Contracts upon which the licensee is relying None pursuant to 10 CFR 50.75(e)(1)(v):

6. Modifications to a licensees current method of None providing financial assurance occurring since the last submitted report:

7. Material changes to trust agreements: None

1. The NRC formulas in section 10 CFR 50.75(c) include only those decommissioning costs incurred by licensees to remove a facility or site safely from service and reduce residual radioactivity to levels that permit: (1) release of the property for unrestricted use and termination of the license or (2) release of the property under restricted conditions and termination of the license.

2. By Order dated October 10, 2008, in PUCT Docket No. 35772, NRG South Texas was granted approval to establish a separate spent nuclear fuel management (SNF) subaccount. By Order dated July 13, 2009, in PUCT Docket No.

36796, NRG South Texas was granted approval to establish a separate subaccount for the pre-shutdown disposal of large components. By Order dated October 7, 2013, NRG South Texas was granted approval to establish a separate subaccount for amounts recovered pursuant to a litigation settlement agreement with the United States government for certain onsite spent fuel storage and management expenses it has incurred and will incur as a result of the failure of the Department of Energy to provide for the offsite disposal of spent nuclear fuel. The amounts allocable to the subaccounts are not included in the reported amount. The reported amount includes funds accumulated based upon a site-specific study that includes license termination and other costs.

3. NRG estimates that the Trust is currently fully funded, based on the 2018 decommissioning cost study and updated escalation rates. Additional contributions ended December 31, 2008. If future estimates indicate that further funding may be required, NRG would be able to apply to the PUCT to seek further funding for NRC license termination costs through cost-of-service recovery authorized by Texas law.

4. Escalation and earnings rates were established by the PUCT in PUCT Tariff Control No. 41970.

ATTACHMENT 2 SOUTH TEXAS PROJECT FINANCIAL ASSURANCE FOR DECOMMISSIONING 2021 UPDATE CITY PUBLIC SERVICE BOARD OF SAN ANTONIO

Attachment 2 NOC-AE-21003791 Page 1 of 4 FINANCIAL ASSURANCE FOR DECOMMISSIONING City Public Service Board of San Antonio 12% Ownership of South Texas Project Unit 1 Pursuant to 10 CFR 50.75(f)(1), each power reactor licensee is required to report to the NRC on a calendar year basis, beginning on March 31, 1999, and every two years thereafter, on the status of its decommissioning funding for each reactor or share of reactor it owns. The requested information is provided below.

1. Minimum decommissioning fund estimate Total Required: $48,571,702 pursuant to 10 CFR 50.75(b) and (c)1:

2. Amount accumulated at the end of the calendar Amount Accumulated2: $56,351,833 year preceding the date of the report for items included in 10 CFR 50.75(b) and (c):

3. Schedule of the annual amounts remaining to be Amount Remaining3: $0 collected for items in 10 CFR 50.75(b) and (c):

Number of Years to Collect: 27

4. Assumptions used regarding escalation in Escalation Rate: 2.540%

decommissioning cost, rates of earnings on decommissioning funds, and rates of other Earnings Rate: 5.14%

factors used in funding projections:

5. Contracts upon which the licensee is relying None pursuant to 10 CFR 50.75(e)(1)(v):

6. Modifications to a licensees current method of None providing financial assurance occurring since the last submitted report:

7. Material changes to trust agreements: No changes since 2019 report was submitted.

1. The NRC formulas in 10 CFR 50.75(c) include only those decommissioning costs incurred by licensees to remove a facility or site safely from service and reduce residual radioactivity to levels that permit: (1) release of the property for unrestricted use and termination of the license or (2) release of the property under restricted conditions and termination of the license. The cost of dismantling or demolishing non-radiological systems and structures is not included in NRC decommissioning cost estimates. The costs of managing and storing spent fuel on site until transfer to the Department of Energy are not included in the cost formulas.

2. By Order dated November 20, 2008, in PUCT Docket No. 35786, CPS Energy was granted approval to establish separate spent fuel management and pre-shutdown activities subaccounts. The amounts allocable to these subaccounts are not included in the reported amount. The reported amount includes funds accumulated based upon a site-specific study that includes license termination and other costs.

3. CPS Energy estimates that the Trust is currently fully funded, based on the 2018 decommissioning cost study and updated escalation rates. Additional contributions ended December 31, 2008. If future estimates indicate that further funding may be required, CPS Energy would be able to apply to the PUCT to seek further funding for NRC license termination costs through cost-of-service recovery authorized by Texas law.

Attachment 2 NOC-AE-21003791 Page 2 of 4 FINANCIAL ASSURANCE FOR DECOMMISSIONING City Public Service Board of San Antonio 28% Ownership of South Texas Project Unit 1 Pursuant to 10 CFR 50.75(f)(1), each power reactor licensee is required to report to the NRC on a calendar year basis, beginning on March 31, 1999, and every two years thereafter, on the status of its decommissioning funding for each reactor or share of reactor it owns. The requested information is provided below.

1. Minimum decommissioning fund estimate Total Required: $113,333,972 pursuant to 10 CFR 50.75(b) and (c)1:

2. Amount accumulated at the end of the calendar Amount Accumulated2: $150,490,383 year preceding the date of the report for items included in 10 CFR 50.75(b) and (c):

3. Schedule of the annual amounts remaining to be Amount Remaining3: $0 collected for items in 10 CFR 50.75(b) and (c):

Number of Years to Collect: 27

4. Assumptions used regarding escalation in Escalation Rate: 2.540%

decommissioning cost, rates of earnings on decommissioning funds, and rates of other Earnings Rate:

factors used in funding projections: 5.14%

5. Contracts upon which the licensee is relying None pursuant to 10 CFR 50.75(e)(1)(v):

6. Modifications to a licensees current method of None providing financial assurance occurring since the last submitted report:

7. Material changes to trust agreements: No changes since 2019 report was submitted.

1. The NRC formulas in 10 CFR 50.75(c) include only those decommissioning costs incurred by licensees to remove a facility or site safely from service and reduce residual radioactivity to levels that permit: (1) release of the property for unrestricted use and termination of the license or (2) release of the property under restricted conditions and termination of the license. The cost of dismantling or demolishing non-radiological systems and structures is not included in NRC decommissioning cost estimates. The costs of managing and storing spent fuel on site until transfer to the Department of Energy are not included in the cost formulas.

2. Consistent with the approach taken for its 12% interest in the Order dated November 20, 2008, in PUCT Docket No.

35786, CPS Energy has established separate spent fuel management and pre-shutdown activity subaccounts. The amounts allocable to these subaccounts are not included in the reported amount. The reported amount includes funds accumulated based upon a site-specific study that includes license termination and other costs.

3. CPS Energy estimates that the Trust is currently fully funded, based on the 2018 decommissioning cost study and updated escalation rates. Additional contributions ended January 31, 2008. If future estimates indicate that further funding may be required, CPS Energy through the City of San Antonio, its rate setting authority, would be able to set rates to collect and accumulate further funds for NRC license termination costs.

Attachment 2 NOC-AE-21003791 Page 3 of 4 FINANCIAL ASSURANCE FOR DECOMMISSIONING City Public Service Board of San Antonio 12% Ownership of South Texas Project Unit 2 Pursuant to 10 CFR 50.75(f)(1), each power reactor licensee is required to report to the NRC on a calendar year basis, beginning on March 31, 1999, and every two years thereafter, on the status of its decommissioning funding for each reactor or share of reactor it owns. The requested information is provided below.

1. Minimum decommissioning fund estimate Total Required: $48,571,702 pursuant to 10 CFR 50.75(b) and (c)1:

2. Amount accumulated at the end of the calendar Amount Accumulated2: $75,054,049 year preceding the date of the report for items included in 10 CFR 50.75(b) and (c):

3. Schedule of the annual amounts remaining to be Amount Remaining3: $0 collected for items in 10 CFR 50.75(b) and (c):

Number of Years to Collect: 28

4. Assumptions used regarding escalation in Escalation Rate: 2.530%

decommissioning cost, rates of earnings on decommissioning funds, and rates of other Earnings Rate: 5.14%

factors used in funding projections:

5. Contracts upon which the licensee is relying None pursuant to 10 CFR 50.75(e)(1)(v):

6. Modifications to a licensees current method of None providing financial assurance occurring since the last submitted report:

7. Material changes to trust agreements: No changes since 2019 report was submitted.

1. The NRC formulas in 10 CFR 50.75(c) include only those decommissioning costs incurred by licensees to remove a facility or site safely from service and reduce residual radioactivity to levels that permit: (1) release of the property for unrestricted use and termination of the license or (2) release of the property under restricted conditions and termination of the license. The cost of dismantling or demolishing non-radiological systems and structures is not included in NRC decommissioning cost estimates. The costs of managing and storing spent fuel on site until transfer to the Department of Energy are not included in the cost formulas.

2. By Order dated November 20, 2008, in PUCT Docket No. 35786, CPS Energy was granted approval to establish separate spent fuel management and pre-shutdown activities subaccounts. The amounts allocable to these subaccounts are not included in the reported amount. The reported amount includes funds accumulated based upon a site-specific study that includes license termination and other costs.

3. CPS Energy estimates that the Trust is currently fully funded, based on the 2018 decommissioning cost study and updated escalation rates. Additional contributions ended December 31, 2008. If future estimates indicate that further funding may be required, CPS Energy would be able to apply to the PUCT to seek further funding for NRC license termination costs through cost-of-service recovery authorized by Texas law.

Attachment 2 NOC-AE-21003791 Page 4 of 4 FINANCIAL ASSURANCE FOR DECOMMISSIONING City Public Service Board of San Antonio 28% Ownership of South Texas Project Unit 2 Pursuant to 10 CFR 50.75(f)(1), each power reactor licensee is required to report to the NRC on a calendar year basis, beginning on March 31, 1999, and every two years thereafter, on the status of its decommissioning funding for each reactor or share of reactor it owns. The requested information is provided below.

1. Minimum decommissioning fund estimate Total Required: $113,333,972 pursuant to 10 CFR 50.75(b) and (c)1:

2. Amount accumulated at the end of the calendar Amount Accumulated2: $178,557,351 year preceding the date of the report for items included in 10 CFR 50.75(b) and (c):

3. Schedule of the annual amounts remaining to be Amount Remaining3: $0 collected for items in 10 CFR 50.75(b) and (c):

Number of Years to Collect: 28

4. Assumptions used regarding escalation in Escalation Rate: 2.530%

decommissioning cost, rates of earnings on decommissioning funds, and rates of other Earnings Rate: 5.14%

factors used in funding projections:

5. Contracts upon which the licensee is relying None pursuant to 10 CFR 50.75(e)(1)(v):

6. Modifications to a licensees current method of None providing financial assurance occurring since the last submitted report:

7. Material changes to trust agreements: No changes since 2019 report was submitted.

1. The NRC formulas in 10 CFR 50.75(c) include only those decommissioning costs incurred by licensees to remove a facility or site safely from service and reduce residual radioactivity to levels that permit: (1) release of the property for unrestricted use and termination of the license or (2) release of the property under restricted conditions and termination of the license. The cost of dismantling or demolishing non-radiological systems and structures is not included in NRC decommissioning cost estimates. The costs of managing and storing spent fuel on site until transfer to the Department of Energy are not included in the cost formulas.

2. Consistent with the approach taken for its 12% interest in the Order dated November 20, 2008, in PUCT Docket No.

35786, CPS Energy has established separate spent fuel management and pre-shutdown activity subaccounts. The amounts allocable to these subaccounts are not included in the reported amount. The reported amount includes funds accumulated based upon a site-specific study that includes license termination and other costs.

3. CPS Energy estimates that the Trust is currently fully funded, based on the 2018 decommissioning cost study and updated escalation rates. Additional contributions ended January 31, 2008. If future estimates indicate that further funding may be required, CPS Energy through the City of San Antonio, its rate setting authority, would be able to set rates to collect and accumulate further funds for NRC license termination costs.

ATTACHMENT 3 SOUTH TEXAS PROJECT FINANCIAL ASSURANCE FOR DECOMMISSIONING 2021 UPDATE CITY OF AUSTIN - AUSTIN ENERGY

Attachment 3 NOC-AE-21003791 Page 1 of 2 FINANCIAL ASSURANCE FOR DECOMMISSIONING City of Austin - Austin Energy 16% Ownership of South Texas Project Unit 1 Pursuant to 10 CFR 50.75(f)(1), each power reactor licensee is required to report to the NRC on a calendar year basis, beginning on March 31, 1999, and every two years thereafter, on the status of its decommissioning funding for each reactor or share of reactor it owns. The requested information is provided below.

1. Minimum decommissioning fund estimate Total Required: $64,762,706 pursuant to 10 CFR 50.75(b) and (c)1:

2. Amount accumulated at the end of the calendar Amount Accumulated: $72,155,207 year preceding the date of the report for items included in 10 CFR 50.75(b) and (c):

3. Schedule of the annual amounts remaining to be Amount Remaining: $60,507,730 collected for items in 10 CFR 50.75(b) and (c):

Number of Years to Collect: 27

4. Assumptions used regarding escalation in Escalation Rate: 2.517%

decommissioning cost, rates of earnings on decommissioning funds, and rates of other Earnings Rate: 2.5%

factors used in funding projections:

5. Contracts upon which the licensee is relying None pursuant to 10 CFR 50.75(e)(1)(v):

6. Modifications to a licensees current method of None providing financial assurance occurring since the last submitted report:

7. Material changes to trust agreements: None

1. The NRC formulas in 10 CFR 50.75(c) include only those decommissioning costs incurred by licensees to remove a facility or site safely from service and reduce residual radioactivity to levels that permit: (1) release of the property for unrestricted use and termination of the license or (2) release of the property under restricted conditions and termination of the license. The cost of dismantling or demolishing non-radiological systems and structures is not included in NRC decommissioning cost estimates. The costs of managing and storing spent fuel on site until transfer to Department of Energy are not included in the cost formulas.

Attachment 3 NOC-AE-21003791 Page 2 of 2 FINANCIAL ASSURANCE FOR DECOMMISSIONING City of Austin - Austin Energy 16% Ownership of South Texas Project Unit 2 Pursuant to 10 CFR 50.75(f)(1), each power reactor licensee is required to report to the NRC on a calendar year basis, beginning on March 31, 1999, and every two years thereafter, on the status of its decommissioning funding for each reactor or share of reactor it owns. The requested information is provided below.

1. Minimum decommissioning fund estimate Total Required: $64,762,706 pursuant to 10 CFR 50.75(b) and (c)1:

2. Amount accumulated at the end of the calendar Amount Accumulated: $79,094,135 year preceding the date of the report for items included in 10 CFR 50.75(b) and (c):

3. Schedule of the annual amounts remaining to be Amount Remaining: $50,801,980 collected for items in 10 CFR 50.75(b) and (c):

Number of Years to Collect: 28

4. Assumptions used regarding escalation in Escalation Rate: 2.527%

decommissioning cost, rates of earnings on decommissioning funds, and rates of other Earnings Rate: 2.5%

factors used in funding projections:

5. Contracts upon which the licensee is relying None pursuant to 10 CFR 50.75(e)(1)(v):

6. Modifications to a licensees current method of None providing financial assurance occurring since the last submitted report:

7. Material changes to trust agreements: None

1. The NRC formulas in 10 CFR 50.75(c) include only those decommissioning costs incurred by licensees to remove a facility or site safely from service and reduce residual radioactivity to levels that permit: (1) release of the property for unrestricted use and termination of the license or (2) release of the property under restricted conditions and termination of the license. The cost of dismantling or demolishing non-radiological systems and structures is not included in NRC decommissioning cost estimates. The costs of managing and storing spent fuel on site until transfer to the Department of Energy are not included in the cost formulas.