ML24088A302

Financial Assurance for Decommissioning - 2024 Update

ML24088A302
Person / Time
Site:	South Texas
Issue date:	03/28/2024
From:	Cornelius S South Texas
To:	Office of Nuclear Reactor Regulation, Document Control Desk
References
NOC-AE-24004029, 35576502
Download: ML24088A302 (1)

Text

NOC-AE-24004029 Page 2 of 2

cc:

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

FINANCIAL ASSURANCE FOR DECOMMISSIONING

2024 UPDATE

CONSTELLATION SOUTH TEXAS, LLC NOC-AE-24004029 Page 1 of 4

Financial Assurance for Decommissioning Constellation South Texas, LLC 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 2 years thereafter, on the status of its decommissioning funding for each reactor or share of reactor it owns. Additionally, any licensee for a plant that is involved in a merger, or an acquisition shall submit this report annually.

Please reference the information below for the requested information:

1. Minimum decommissioning fund estimate, Pursuant to 10 CFR 50.75 (b) and (c) $54,469,192

2. Amount accumulated at the end of the calendar year preceding The date of the report for items included in 10 CFR 50.75 (b) and (c).

$97,042,1081

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

amount remaining $02

1. of years to collect 23.7

4. Assumptions used regarding escalation in decommissioning cost, rates of earnings on decommissioning funds, and rates of other factors used in funding projections;

Escalation Rate: 2.540% 3 Earnings Rate: 3.628%

5. Contracts upon which the licensee is relying pursuant to 10 CFR 50.75 (e)(1)(v)

None

6. Modifications to a licensees current method providing financial assurance occurring since the last submitted report.

None

7. Material changes to trust agreements.

None

1 By Order dated October 10, 2008, in PUCT Docket No. 35772, Constellation South Texas (then known as 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, Constellation South Texas was granted approval to establish a separate subaccount for the pre-shutdown disposal of large components. By Order dated October 7, 2013, in PUCT Docket No. 41580, Constellation 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 and have been exclusively funded by Texas ratepayers. The reported amount includes funds accumulated based upon a site-specific study that includes license termination and other costs.

2 Target amounts to be collected were established by the PUCT -approved separate non-bypassable decommissioning charges established in PUCT Tariff Control No. 49163. Actual collections will vary but the charges are intended to produce the targeted annual collection amounts established in PUCT Docket No. 48447.

All current collections are being deposited in the large component disposal subaccount.

3 Escalation and earnings rates were established by the PUCT in PUCT Tariff Control No. 49163.

NOC-AE-24004029 Page 2 of 4

Financial Assurance for Decommissioning Constellation South Texas, LLC 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 2 years thereafter, on the status of its decommissioning funding for each reactor or share of reactor it owns. Additionally, any licensee for a plant that is involved in a merger, or an acquisition shall submit this report annually.

Please reference the information below for the requested information:

1. Minimum decommissioning fund estimate, Pursuant to 10 CFR 50.75 (b) and (c) $127,094,781

2. Amount accumulated at the end of the calendar year preceding The date of the report for items included in 10 CFR 50.75 (b) and (c).

$247,362,6731

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

amount remaining $02

1. of years to collect 23.7

4. Assumptions used regarding escalation in decommissioning cost, rates of earnings on decommissioning funds, and rates of other factors used in funding projections;

Escalation Rate: 2.540%3 Earnings Rate: 3.628%

5. Contracts upon which the licensee is relying pursuant to 10 CFR 50.75 (e)(1)(v)

None

6. Modifications to a licensees current method providing financial assurance occurring since the last submitted report.

None

7. Material changes to trust agreements.

None

1 By Order dated October 10, 2008, in PUCT Docket No. 35772, Constellation South Texas (then known as 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, Constellation South Texas was granted approval to establish a separate subaccount for the pre-shutdown disposal of large components. By Order dated October 7, 2013, in PUCT Docket No. 41580, Constellation 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 and have been exclusively funded by Texas ratepayers. The reported amount includes funds accumulated based upon a site-specific study that includes license termination and other costs.

2 Target amounts to be collected were established by the PUCT -approved separate non-bypassable decommissioning charges established in PUCT Tariff Control No. 49082. Actual collections will vary but the charges are intended to produce the targeted annual collection amounts established in PUCT Docket No. 48447.

All current collections are being deposited in the large component disposal subaccount.

3 Escalation and earnings rates were established by the PUCT in PUCT Tariff Control No. 49082.

NOC-AE-24004029 Page 3 of 4

Financial Assurance for Decommissioning Constellation South Texas, LLC 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 2 years thereafter, on the status of its decommissioning funding for each reactor or share of reactor it owns. Additionally, any licensee for a plant that is involved in a merger, or an acquisition shall submit this report annually.

Please reference the information below for the requested information:

1. Minimum decommissioning fund estimate, Pursuant to 10 CFR 50.75 (b) and (c) $54,469,192

2. Amount accumulated at the end of the calendar year preceding The date of the report for items included in 10 CFR 50.75 (b) and (c).

$115,418,4101

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

amount remaining $02

1. of years to collect 25

4. Assumptions used regarding escalation in decommissioning cost, rates of earnings on decommissioning funds, and rates of other factors used in funding projections;

Escalation Rate: 2.530%3 Earnings Rate: 3.628%

5. Contracts upon which the licensee is relying pursuant to 10 CFR 50.75 (e)(1)(v)

None

6. Modifications to a licensees current method providing financial assurance occurring since the last submitted report.

None

7. Material changes to trust agreements.

None

1 By Order dated October 10, 2008, in PUCT Docket No. 35772, Constellation South Texas (then known as 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, Constellation South Texas was granted approval to establish a separate subaccount for the pre-shutdown disposal of large components. By Order dated October 7, 2013, in PUCT Docket No. 41580, Constellation 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 and have been exclusively funded by Texas ratepayers. The reported amount includes funds accumulated based upon a site-specific study that includes license termination and other costs.

2 Target amounts to be collected were established by the PUCT -approved separate non-bypassable decommissioning charges established in PUCT Tariff Control No. 49163. Actual collections will vary but the charges are intended to produce the targeted annual collection amounts established in PUCT Docket No. 48447.

All current collections are being deposited in the large component disposal subaccount.

3 Escalation and earnings rates were established by the PUCT in PUCT Tariff Control No. 49163.

NOC-AE-24004029 Page 4 of 4

Financial Assurance for Decommissioning Constellation South Texas, LLC 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 2 years thereafter, on the status of its decommissioning funding for each reactor or share of reactor it owns. Additionally, any licensee for a plant that is involved in a merger, or an acquisition shall submit this report annually. Please reference the information below for the requested information:

1. Minimum decommissioning fund estimate, Pursuant to 10 CFR 50.75 (b) and (c) $127,094,781

2. Amount accumulated at the end of the calendar year preceding The date of the report for items included in 10 CFR 50.75 (b) and (c).

$300,327,9501

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

amount remaining $02

1. of years to collect 25

4. Assumptions used regarding escalation in decommissioning cost, rates of earnings on decommissioning funds, and rates of other factors used in funding projections;

Escalation Rate: 2.530%3 Earnings Rate: 3.628%

5. Contracts upon which the licensee is relying pursuant to 10 CFR 50.75 (e)(1)(v)

None

6. Modifications to a licensees current method providing financial assurance occurring since the last submitted report.

None

7. Material changes to trust agreements.

None

1 By Order dated October 10, 2008, in PUCT Docket No. 35772, Constellation South Texas (then known as 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, Constellation South Texas was granted approval to establish a separate subaccount for the pre -

shutdown disposal of large components. By Order dated October 7, 2013, in PUCT Docket No. 41580, Constellation 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 and have been exclusively funded by Texas ratepayers. The reported amount includes funds accumulated based upon a site -specific study that includes license termination and other costs.

2 Target amounts to be collected were established by the PUCT -approved separate non-bypassable decommissioning charges established in PUCT Tariff Control No. 49082. Actual collections will vary but the charges are intended to produce the target ed annual collection amounts established in PUCT Docket No. 48447. All current collections are being deposited in the large component disposal subaccount.

3 Escalation and earnings rates were established by the PUCT in PUCT Tariff Control No. 49082.