ML19092A269

Decommissioning Funding Status Report

ML19092A269
Person / Time
Site:	North Anna
Issue date:	03/27/2019
From:	Brickhouse T Old Dominion Electric Cooperative
To:	Document Control Desk, Office of Nuclear Reactor Regulation
References
Download: ML19092A269 (4)

Text

ODEC March 27, 2019 Old Dominion Electric CooperativesM United States Nuclear Regulatory Commission Attention:

Document Control Desk Washington, D. C. 20555-0001

License Nos. NPF-4,7 .,., OLD DOMINION ELECTRIC COOPERATIVE NORTH ANNA POWER STATION UNITS 1 AND 2 DECOMMISSIONING FUNDING STATUS REPORT Pursuant to 10 CFR 50.75(f)(1

), Old Dominion Electric Cooperative (ODEC), is providing this report on the status of decommissioning funding for the North Anna Power Station (NAPS). Attachment 1 provides the following information for NAPS: NRC Minimum Financial Assurance Amount as of 12/31/2018 The following information is provided in support and as part of this filing: 1. Preliminary December 2018 Bureau of Labor Statistics indices values are used because the final December 2018 indices values were not available at the time of this filing. 2. The escalation of decommissioning costs is held at 0% based on assuming 2% Real Rate of Return. 3. The growth. rate on Trust Funds is held at the allowed 2% Real Rate of Return over the escalation rate. 4. No rate regulatory authority citation for NAPS is referenced because the 2% Real Rate of Return allowed by 50.75(e)(1

)(ii) is used in the calculations.

5. The current annual funding amounts shown for NAPS (Attachment

1) reflect only those fund amounts that are dedicated to radiological decommissioning.

6. Trust Fund amounts shown for each of the units 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 not currently taxable. 9 4201 Dominion Boulevard Glen Allen, Virginia 23060 804-747-0592 Jbi 804-747-3742 pol @I www.odec.com

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7. Since the previous biennial submittal on March 30, 2017 (ML 17093A669) for NAPS, there have been no material changes to trust agreements established for nuclear decommissioning for the NAPS units. If you have any questions concerning this filing, please contact me at (804) 968-4012.

Sincerely, Todd T. Brickhouse Vice President

-Treasurer Old Dominion Electric Cooperative Attachment Commitments made in this letter: None cc: U. S. Nuclear Regulatory Commission Region II Marquis One Tower 245 Peachtree Center Avenue, N~ Suite 1200 Atlanta, Georgia 30303-1257 Maggie Tobin Site Senior Resident Inspector NRG North Anna Power Station 1024 Haley Drive Mineral, VA 23117 9 4201 Dominion Boulevard

.~ 804-747-0592 Jbt 804-747-3742

• ffl) www.odec.com Glen Allen, Virginia 23060 J. Hall NRC Project Manager U. S. Nuclear Regulatory Commission, Mail Stop 08 G-9A One White Flint North 11555 Rockville Pike Rockville, MD 20852-2738 Daniel G. Stoddard . Senior Vice President and Chief Nuclear Officer Virginia Electric and _Power Company 5000 Dominion Boulevard Glen Allen, VA 23060 ., Frederick D. Gerloff Decommissioning Project Manager Dominion Energy 5000 Dominion Blvd, 2SE Glen Allen, VA 23060 9 4201 Dominion Boulevard

\: 804-747-0592 lbt 804-747-3742 (ffl) www.odec.com Glen Allen, Virginia 23060 Attachment 1 OLD DOMINION ELECTRIC COOPERATIVE NORTH ANNA POWER STATION UNITS 1 AND 2 2018 NUCLEAR DECOMMISSIONING FINANCIAL ASSURANCE In millions of dollars, except percentages and years North Anna 1 Unit 1 NPF-4 North Anna 1 Unit 2 NPF-7 Total For All Units Method for Providing Financial Assurance NRC Minimum Financial Assurance Amounts as of 12/31/2018:

Funds in the External Trust as of 12/31/2018:

Allocated Radiological Funds Held in External Trust as of 12/31/2018 2: Allocated Radiological Funds Held in External Trust as of 12/31/18 minus NRC Minimum Amounts as of 12/31/18 2*3: Projected Annual Escalation F~ct~r: Annual Trust Funds Earnings Rate (After Taxes and Fees -assumes 2% Real Rate of Return): Year Operating License Expires/ Start of Decommissioning (Reflects License Renewals):

NRC Minimum Financial Assurance Amount 3.5 years after start of Deco~missioning:

Estimated Radiological Funds in External Trust 3.5 years after start of Decommissioning 2: Allocated Radiological Funds in excess or (underfunded) to NRC Minimum 3.5 years after start of Decommissioning 2*3.4: Estimated Radiological Funds in excess or (underfunded) to NRC Minimum Amount Discounted using Annual Trust Funds Earnings Rate to 12/31/2018

$4,5: $ $ $ $ $ $ $ External Sinking Fund 52.44 85.88 59.25 6.81 0.000% 2.000% 2038 52.44 92.97 40.53 $27.69 $ $ $ $ $ $ $ External Sinking Fund 52.44 88.22 60.86 8.43 0.000% 2.000% 2040 52.44 100.13 47.69 $31.07 $104.88 $174.10 $120.12 $104.88 $193.10 $88.23 $58.75 1 The North Anna Power Station is jointly owned by Virginia Electric and Power Company (88.4%) and Old Dominion Electric Cooperative (11.6%). However, Old Dominion Electric Cooperative is responsible for 10.74% of the decommissioning obligation.

The amounts stated in the above tables reflect only that portion of the decommissioning obligation attributable to Old Dominion Electric Cooperative.

2 The Allocated Radiological Funds amounts shown exclude amounts designated for the future decommissioning of the independent spent fuel storage installation, spent fuel management, and non-radiological decommissioning.

The amount of decommissioning funds is the after-tax amount of funds accumulated through December 31, 2018. 3 Negative amounts (if any) indicate that the Trust fund values are less than the values of the NRC Minimum Amounts for the period indicated.

4 The future value calculation reflects a 2% real rate of return applied from January 1, 2019 to 3.5 years after start of decommissioning assuming a 0% escalation rate. 5 Adjustment F~ctors unsed in calculating NRC Minimum Values are based on preliminary December 2018 BLS Producer Price Indices, as final December 2018 indices were not available at the time of the calculation.

ODEC serves the power requirements of its 11 member distribution cooperatives pursuant to long-term wholesale power contracts.

ODEC's wholesale power contracts with each of its member distribution cooperatives are substantially identical, while the schedules and exhibits to each contract are specific to each member. There have been no modifications to the current method of providing financial assurance since the report submitted on March 30, 2017 (ML17093A669).