ML110871121

Independent Spent Fuel and Monticello, Decommissioning Funding Status Reports

ML110871121
Person / Time
Site:	Monticello, Prairie Island
Issue date:	03/28/2011
From:	Molden J E Northern States Power Co, Xcel Energy
To:	Document Control Desk, Office of Nuclear Material Safety and Safeguards, Office of Nuclear Reactor Regulation
References
L-XE-11-007
Download: ML110871121 (7)

Text

/@ Xcel Energy" March 28, 201 1 414 Nicollet Mall - MP4 Minneapolis, MN 55401 L-XE-11-007 10 CFR 50.75(f)(1) U.S. Nuclear Regulatory Commission ATTN: Document Control Desk Washington, DC 20555 Prairie Island Nuclear Generating Plant, Monticello Nuclear Generating Plant Units 1 and 2 Docket 50-263 Dockets 50-282, 50-306 Renewed License No. DPR-22 License Nos. DPR-42 and DPR-60 Prairie Island Independent Spent Fuel Storage Installation Docket 72-1 0 Materials License No. SNM-2506 Decommissioning Funding Status Reports The enclosed decommissioning funding status reports are being submitted in accordance with 10 CFR 50.75, "Reporting and Recordkeeping for Decommissioning Planning," Paragraph (f)(l), for the aforementioned plants with addition to Regulatory Issue Summary (RIS) 2001-'07 providing radiological decommissioning, spent fuel management, and site restoration cost segmentation. As holder of the plant operating licenses, Northern States Power Company, a Minnesota corporation (NSPM) d/b/a Xcel Energy is submitting these reports. The financial information presented herein, is current as of December 31, 2010.

Summarv of Commitments This letter contains no new commitments and no revisions to existing commitments.

U~ames E. Molden Vice President, Operations Support Northern States Power Company - Minnesota Enclosures (4) cc: Administrator, Region Ill, USNRC Project Managers, above listed plants, USNRC NRC Resident Inspectors, above listed plants, USNRC ENCLOSURES 5 pages follow Title Decommissioning Funding Status Report Decommissioning Funding Status Report Decommissioning Funding Status Report Xcel Energy Breakdown of Annual Contributions and Trust Fund Balance (RIS 2001-07) Enclosure 1 2 3 4 Plant Prairie Island Nuclear Generating Plant, Unit 1 (PI1) Prairie Island Nuclear Generating Plant, Unit 2 (P12) Monticello Nuclear Generating Plant (MNGP) All ENCLOSURE I Prairie Island Nuclear Generating Plant, Unit 1 Docket No. 50-282 License No.

DPR-42 Decommissioning Funding Status Report As provided in 10 CFR 50,75(f)(l), each power reactor licensee is required to report to the NRC on a calendar year basis beginning March 31, 1999, and every two years thereafter on the status of its decommissioning funding for each reactor or share of reactor it owns. 1. The minimum decommissioning fund estimate, pursuant to 10 CFR 50.75(b) and (c), in 2010 dollars.

2. The amount accumulated at the end of the calendar year preceding the date of the report. (See Enclosure 4 for segmentation of Radiological Decommissioning, Spent Fuel Management, and Site Restoration Trust Funds Balances).

3. A schedule of the annual amounts remaining to be collected through rates from customers.

Collect External Qualified External Escrow Internal Total $343,789,857

$45,819,995

$631,467 $390,241,319

5. Any contracts upon which the licensee is relying pursuant to 10 CFR 50.75(e) (1) (v). None 4. Assumptions used regarding escalation in decommissioning costs, rate of earnings on decommissioning funds and rates of other factors used in funding projections.

6. Any modifications to a licensee's method of providing financial assurance occurring since the last submitted report.

None Real Rate of Return (Projected) 3.41 % Plant Owner

(% Ownership) Xcel Energy (100%) - PlNGP Unit 1 7. Any material changes to trust agreements.

None Basis for Allowance:

Xcel Energy files a triennial decommissioning study with the Minnesota Public Utilities Commission (MPUC) for approval. A portion of the study is dedicated to an internal analysis of inflation factors surrounding the various components necessary to perform the decommissioning function.

The analysis utilizes long-range inflation projections published by Global Insight, the Consumer Price Index, and the Chained Price Index for Gross Domestic Product, as well as other forecasted data. Note: These rates apply to external funds only. The rate of earnings and escalation factors were approved by the MPUC in the most recent triennial decommissioning study completed by the company, MPUC Docket No.

E002lM-08-1201, effective June 12, 2009.

The projected real rate of return of 3.41 % would accumulate sufficient decommissioning funds by the current 201 3 end of license date.

Rate of Earnings (Nominal Rate Of Return) 6.30% Escalation Factor (Inflation) 2.89%

ENCLOSURE 2 Prairie Island Nuclear Generating Plant, Unit 2 Docket 50-306 License DPR-60 Decommissioning Funding Status Report As provided in 10 CFR 50,75(f)(l), each power reactor licensee is required to report to the NRC on a calendar year basis beginning March 31, 1999, and every two years thereafter on the status of its decommissioning funding for each reactor or share of reactor it owns.

1. The minimum decommissioning fund estimate, pursuant to 10 CFR 50.75(b) and (c), in 2010 dollars.

2. The amount accumulated at the end of the calendar year preceding the date of the report. (See Enclosure 4 for segmentation of Radiological Decommissioning, Spent Fuel Management, and Site Restoration Trust Funds Balances).

3. A schedule of the annual amounts remaining to be collected through rates on customers.

Collect External Qualified External Escrow Internal Total 4. Assumptions used regarding escalation in decommissioning costs, rate of earnings on decommissioning funds and rates of other factors used in funding projections. ( Plant Owner (% Ownership) Rate of Earnings ( Escalation 1 Real Rate of I $358,946,949

$57,272,598

$91 8,249 $417,137,796

5. Any contracts upon which the licensee is relying pursuant to 10 CFR 50.75(e) (1) (v). None Xcel Energy (100%)-

PlNGP Unit 2 6. Any modifications to a licensee's method of providing financial assurance occurring since the last submitted report.

None 7. Any material changes to trust agreements.

None Basis for Allowance:

Xcel Energy files a triennial decommissioning study with the Minnesota Public Utilities Commission (MPUC) for approval. A portion of the study is dedicated to an internal analysis of inflation factors surrounding the various components necessary to perform the decommissioning function. The analysis utilizes long-range inflation projections published by Global Insight, the Consumer Price Index, and the Chained Price Index for Gross Domestic Product, as well as other forecasted data. Note: These rates apply to external funds only. The rate of earnings and escalation factors were approved by the MPUC in the most recent triennial decommissioning study completed by the company, MPUC Docket No.

E002lM-08-1201, effective June 12, 2009. The projected real rate of return of 3.41 % would accumulate sufficient decommissioning funds by the current 2014 end of license date. (Nominal Rate Of Return) 6.30% Factor (Inflation) 2.89% Return (Projected) 3.41 %

ENCLOSURE 3 Monticello Nuclear Generating Plant Docket No.

50-263 License No. DPR-22 Decommissioning Funding Status Report As provided in 10 CFR 50.75(f)(I), each power reactor licensee is required to report to the NRC on a calendar year basis beginning March 31, 1999, and every two years thereafter on the status of its decommissioning funding for each reactor or share of reactor it owns. 1. The minimum decommissioning fund estimate, pursuant to 10 CFR 50.75(b) and (c), in 2010 dollars.

2. The amount accumulated for Radiological Decommissioning at the end of the calendar year preceding the date of the report. (See Enclosure 4 for segmentation of Radiological Decommissioning, Spent Fuel Management, and Site Restoration Trust Funds Balances).

3. A schedule of the annual amounts remaining to be collected through rates from customers.

Collect External Qualified External Escrow Internal Total $352,285,756

$605,248 $0 $352,891,004

5. Any contracts upon which the licensee is relying pursuant to 10 CFR 50.75(e) (1) (v). None 4. Assumptions used regarding escalation in decommissioning costs, rate of earnings on decommissioning funds and rates of other factors used in funding projections.

6. Any modifications to a licensee's method of providing financial assurance occurring since the last submitted report.

None Real Rate of Return (Projected) 3.41 % Plant Owner (% Ownership) Xcel Energy (1 00%)- Monticello

7. Any material changes to trust agreements.

None Basis for Allowance: Xcel Energy files a triennial decommissioning study with the Minnesota Public Utilities Commission (MPUC) for approval. A portion of the study is dedicated to an internal analysis of inflation factors surrounding the various components necessary to perform the decommissioning function. The analysis utilizes long-range inflation projections published by Global Insight, the Consumer Price Index, and the Chained Price Index for Gross Domestic Product, as well as other forecasted data. Note: These rates apply to external funds only. The rate of earnings and escalation factors were approved by the MPUC in the most recent triennial decommissioning study completed by the company, MPUC Docket No.

E002lM-08-1201, effective June 12, 2009. The projected real rate of return of 3.41% would accumulate approximately $667 million in decommissioning funds by the 2030 end of license date.

Rate of Earnings (Nominal Rate Of Return) 6.30% Escalation Factor (Inflation) 2.89%

ENCLOSURE 4 Prairie Island Nuclear Generating Plant (PINGP) Units 1 and 2 Dockets 50-282 and 50-306 Licenses Nos. DPR-42 and DPR-60 Monticello Nuclear Generating Plant (MNGP) Docket 50-263 License No. DPR-22 Xcel Energy Breakdown of Annual Contributions and Trust Fund Balance The following table is the radiological decommissioning, spent fuel management, and site restoration segmentation of the trust fund balances for PINGP Units 1 and 2 and MNGP.

Trust Fund Balances Prairie Island Unit 1 Radiological Decommissioning Spent Fuel Management Site Restoration Total Prairie Island Unit 2 Radiological Decommissioning Spent Fuel Management Site Restoration Total Monticello Radiological Decommissioning Spent Fuel Management Site Restoration Total ENCLOSURE 4 cont. The following annual contributions table shows the approximate accrual segmentation for radiological decommissioning, spent fuel management, and site restoration for PlNGP Units 1 and 2 for 2010. Currently, there are no contributions being made to MNGP or PlNGP Trust Funds for 201

1. Annual Contributions Prairie Island Unit I Radiological Decommissioning Spent Fuel Management Site Restoration Total Prairie Island Unit 2 Radiological Decommissioning Spent Fuel Management Site Restoration Total Monticello Unit 1 Radiological Decommissioning Spent Fuel Management Site Restoration Total 0 0