CPSES-200300601, Decommissioning Report

Decommissioning Report

ML030990611
Person / Time
Site:	Comanche Peak
Issue date:	03/31/2003
From:	Madden F TXU Energy
To:	Document Control Desk, Office of Nuclear Reactor Regulation
References
CPSES-200300601, TXX-03063
Download: ML030990611 (5)

Text

AlA TXU TXU Energy C. Lance Terry Comanche Peak Steam Senior Vice President &

Ref: 10 CFR 50.75(f)

Electric Station Principal Nuclear Officer PO Box 1002 (EO1)

Glen Rose,TX 76043 Tel 254 897 8920 Fax 254 897 6652 lance terry@txu corn CPSES-200300601 Log # TXX-03063 March 31, 2003 U. S. Nuclear Regulatory Commission ATTN: Document Control Desk Washington, DC 20555

SUBJECT:

COMANCHE PEAK STEAM ELECTRIC STATION (CPSES)

DOCKET NOS. 50-445 AND 50-446 DECOMMISSIONING REPORT Gentlemen:

Attached is the biennial decommissioning report for Comanche Peak Units 1 and 2, prepared and submitted pursuant to 10CFR50.75(f). TXU Generation Company LP (TXU Energy) is an unregulated utility and therefore does not meet the definition of an electric utility as defined by 10CFR50.2. The recovery of decommissioning funds for the eventual decommissioning of CPSES Units 1 and 2 is assured through the collection of a non-bypassable charge which is subsequently contributed to an external trust.

The amounts to be collected for CPSES decommissioning are based on a site specific decommissioning study that includes contracting vendors for recycling and compacting waste. Differences between the study as compared to the 1 OCFR50.75 estimate are that buildings/equipment common to both units (e.g., the fuel building and the auxiliary building) are decommissioned with Unit 2, decreasing the cost of Unit 1 and increasing the cost of Unit 2.

When projected to the license expiration date for each unit using the assumptions approved in the last rate case and listed in the attached report, the projected Nuclear Decommissioning Trust balance is greater than the escalated NRC minimum cost of decommissioning for Unit 2, but not for Unit 1. Therefore, TXU Energy is providing the following plan pursuant to 10CFR50.75(f)(4).

A member of the STARS (Strategic Teaming and Resource Sharing) Alliance Callaway a

Comanche Peak Diablo Canyon Palo Verde South Texas Project Wolf Creek

QV TXU TXX-03063 Page 2 of 3 The operating licenses for CPSES Units 1 and 2 expires in 2030 and 2033, respectively, leaving more than 25 years to provide contributions to the Units 1 and 2 decommissioning trust funds. We believe that the earnings rates approved for use in the last rate case with the PUC of Texas no longer reflect current market conditions.

We are reassessing all the assumptions, including the site specific decommissioning cost estimate, which could result in a request for modification of the current tariff.

This would adjust the contribution rate to the decommissioning trust funds sufficient to meet the revised cost estimates and confirm compliance with the financial assurance requirements of 1 OCFR50.75.

This communication contains the following new licensing basis commitment regarding CPSES Units 1 and 2.

Commitment Commitment Number 27281 TXU is reassessing all the assumptions, including the site specific decommissioning cost estimate, which could result in a request for modification of the current tariff. This would adjust the contribution rate to the decommissioning trust funds sufficient to meet the revised cost estimates and confirm compliance with the financial assurance requirements of 1 OCFR50.75.

v TXIU TXX-03063 Page 3 of 3 Should you have any questions regarding the status of decommissioning for CPSES Units 1 and 2, please contact Mr. J. D. Seawright at (254) 897-0140.

Sincerely, TXU Generation Company LP By:

TXU Generation Management Company LLC, Its General Partner C. L. Terry Senior Vice President and Principal Nuclear Officer By:

A y

)K22hL AFred W. Madden Nuclear Licensing Manager JDS/js Attachment c -

E. W. Merschoff, Region IV W. D. Johnson, Region IV D. H. Jaffe, NRR Resident Inspectors, CPSES

Attachment to TXX-03063 Page 1 of 2 TXU Generation Company LP Comanche Peak Steam Electric Station (CPSES)

Information is submitted to provide Financial Assurance Unit # 1 Unit # 2

1. The minimum amount of decommissioning funds estimated to be required pursuant to 10 CFR 50.75 (b) and (c).

At December 31, 2002 Using 10 CFR 50.75(c) formulas

$ 356.7 million

$ 356.7 million Site-specific methodology

$ 350.8 million

$ 519.5 million

2. The 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).

Market Value at December 31, 2002 -

$ 134.8 million

$ 131.4 million

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

Unit # 1 Unit # 2 Years 2003 through 2029 (27 years)

$ 2.6 million

$ 11.0 million Year 2030 0.4 million 11.0 million Year 2031 11.0 million Year 2032 1.8 million Total

$ 71.4 million

$ 320.8 million Based on the collection rate authorized in PUC of Texas Final Order effective 111/02. through the license expiration date.

4. The assumptions used regarding escalation in decommissioning costs, rates of earnings on decommissioning funds, and rates of other factors used in funding projections.

Estimated Escalation rate for decommissioning costs 4.68%

4.68%

Estimated Earnings rates on decommissioning funds 2003 through 2025 6.88%

6.88%

2026 through 2034 5.56%

5.56%

2035 and thereafter 4.04%

4.04%

Rates of other factors used in funding projections None None

5. Any power sale contracts upon which licensee is relying to certifying financial assurance.

None None

6. Modifications to licensee's method of providing financial assurance since previous report.

None None

7. Material changes to trust agreement.

None None Minor changes were made to the Trust Agreement effective 12/31/01 to comply with NRC requirements.

Attachment to TXX-03063 Page 2 of 2 Assumptions Bureau of Labor Statistics Data Employment Cost Index (L, Series ID: ECU13202I Fourth Quarter: 159.0 Not Seasonally Adjusted Compensation: Total Compensation Ownership: Private Industry Periodicity: Index Number Group: South Region Producer Price Index - Commodities (E.)

Series ID: WPU0543 December: 139.6(P)

Not Seasonally Adjusted Group: Fuels and related products and power Item: Industrial electric power Base Date: 8200 Series ID: WPU0573 December: 84.7(P)

Not Seasonally Adjusted Group: Fuels and related products and power Item: Light Fuel Oils Base Date: 8200 Waste Burial Factor (B.)

NUREG-1307, Revision 10 PWR: 9.467 South Carolina:

Non-Atlantic Compact Contracting vendors for recycling and compacting waste