NLS2017031, Submittal of Decommissioning Funding

Submittal of Decommissioning Funding

ML17100A168
Person / Time
Site:	Cooper
Issue date:	03/27/2017
From:	Shaw J Nebraska Public Power District (NPPD)
To:	Document Control Desk, Office of Nuclear Reactor Regulation
References
NLS2017031
Download: ML17100A168 (4)

Text

Nebraska Public Power District NLS2017031 March 27, 2017 U.S. Nuclear Regulatory Commission Attention: Document Control Desk Washington, D.C. 20555-0001 Always there when you need us

Subject:

Decommissioning Funding Cooper Nuclear Station, Docket No. 50-298, DPR-46

Dear Sir or Madam:

50.75(+/-)(1)

The purpose of this letter is to provide Nebraska Public Power District's Tenth Biennial Report on Financial Assurance for Decommissioning for Cooper Nuclear Station in accordance with 10 CFR 50.75(+/-)(1), Reporting and Recordkeeping for Decommissioning Planning. The enclosed report contains the amount of decommissioning funds estimated to be required pursuant to 10 CFR 50.75(b) and (c), the amount accumulated to the end of.the calendar year preceding the date of the report, a schedule of the annual amounts remaining to be collected if needed, the assumpti~ns used regarding rates of escalation in decommissioning costs, and the rate of earnings on decommissioning funds.

This letter does not contain commitments.

Should you have any questions concerning this matter, please contact me at ( 402) 825-2788.

Sine='.~

aw ensmg Manager

/jo Enelosure: Tenth Biennial Report on Financial Assurance for Decommissioning in Accordance with 10 CFR 50.75(+/-)(1) cc: Regional Administrator w/enclosure USNRC - Region IV Senior Resident Inspector w/enclosure USNRC-CNS CNS Records w/enclosure Cooper Project Manager w/enclosure USNRC - Plant Licensing Branch IV NPG Distribution w/o enclosure COOPER NUCLEAR STATION P.O. Box 98 /Brownville, NE 68321-0098 Telephone: (402) 825-3871 /Fax: (402) 825-5271 www.nppd.com

NLS2017031 Enclosure Page 1 of3 NEBRASKA PUBLIC POWER DISTRICT Tenth Biennial Report on Financial Assurance for Decommissioning in Accordance with 10 CFR 50.75(f)(l)

NEBRASKA PUBLIC POWER DISTRICT Tenth Biennial Report on Financial Assurance for Decommissioning In Accordance with 10 CFR 50.75(f)(1)

Date:

March 21, 2017 Station: Cooper Nuclear Station Owner/licensee making the report: Nebraska Public Power District Nebraska Public Power District (the "District") is a public corporation and political subdivision of the state of Nebraska. The District has the power and is required to fix, establish, and collect adequate rates and other charges for electrical energy and any and all commodities or services sold or furnished by it. The District is accordingly authorized to establish its own rates and other charges through which it can recover its cost of service. The District is governed by an 11-member Board of Directors who are popularly elected from the District's chartered territory. The Board of Directors is the rate making authority for the District.

Percentage Ownership: 100 10 CFR 50.75(b) & (c) Decommissioning Estimate (2016 Dollars): $607,866,0001 Decommissioning Fund2 Total as of 12/31/2016: $581, 769, 773 Schedule of Future Annual Fund Projected Earnings and the NRC Minimum Decommissioning Cost in Constant 2016 dollars3 Projected Decommissioning Earnings Credit Funding Applying NRC Beginning Funding Requirement Approved Real Ending Minimum Year Balance Contribution Year-Beginning Rate of Return Balance 2016 Dollars 2017

$581,769,773 0

$14,544,244

$596,314,017

$607,866,000 2018

$596,314,017 0

$14,907,850

$611,221,868

$607,866,000 2019

$611,221,868 0

$15,280,547

$626,502,414

$607,866,000 2020

$626,502,414 0

$15,662,560

$642, 164,975

$607,866,000 2021

$642, 164,975 0

$16,054, 124

$658,219,099

$607,866,000 2022

$658,219,099 0

$16,455,477

$67 4,67 4,577

$607,866,000 1 This updated estimate is based upon NRC decommissioning minimum certification escalation requirements in 10 CFR 50.75(c)(1) and (2) and guidance per NU REG 1307 for a BWR the size (2,419 MW thermal} of Cooper Nuclear Station. The calculation utilizes the waste burial factor for Unaffiliated and Compact-Affiliated States with no Disposal Facility in Revision 16 of NU REG 1307 and Labor (final} and Energy (preliminary) escalation factors derived from December 2016 Midwest regional data of the U.S. Department of Labor Bureau of Labor Statistics. This is a lower figure than was derived for the 2015 funding status report. We note that the escalation of the Labor factor and of the Energy factor, are both slightly higher this year, using the NRC formula. However, the Revision 16, NUREG-1307, waste figure is significantly less than that used in 2015, resulting in a lower overall value.

2 This is the total amount(marketvalue) in the external sinking fund (as described in 10 CFR 50.75)availableto cover the costs of NRC-defined decommissioning.

3 These figures will be recalculated on an annual basis in accordance with 10 CFR 50.75 (b) and (c). The above amounts reflect the current projected annual contributions (including fund earnings), as necessary, to fully fund the decommissioning trust by the end of the operating license (license expiration January 18, 2034 ), and taking into account a pro rata credit during the dismantlement period (recognizing both cash expenditures and earnings) over the first seven years after shutdown on a constant dollar basis (see 10 CFR 50.75(e)(1 )(ii)). Please note that all submissions by the District prior to 2015 in accordance with 10 CFR 50.75(f)(1) have been provided on a nominal dollar basis. This change is responsive to RAI #3 included in a May 23, 2013 email from Lynnea Wilkins, NRC Project Manager.

Projected Decommissioning Earnings Credit Funding Applying NRC Beginning Funding Requirement Approved Real Ending Minimum Year Balance Contribution Year-Beginning Rate of Return Balance 2016 Dollars 2023

$674,674,577 0

$16,866,864

$691,541,441

$607,866,000 2024

$691,541,441 0

$17,288,536

$708,829,977

$607,866,000 2025

$708,829,977 0

$17,720,749

$726,550,727

$607,866,000 2026

$726,550,727 0

$18,163,768

$744,714,495

$607,866,000 2027

$744,714,495 0

$18,617,862

$763,332,357

$607,866,000 2028

$763,332,357 0

$19,083,309

$782,415,666

$607,866,000 2029

$782,415,666 0

$19,560,392

$801,976,058

$607,866,000 2030

$801,976,058 0

$20,049,401

$822,025,459

$607,866,000 2031

$822,025,459 0

$20,550,636

$842,576,096

$607,866,000 2032

$842,576,096 0

$21,064,402

$863,640,498

$607,866,000 2033

$863,640,498 0

$21,591,012

$885,231,510

$607,866,000 2034

$885,231,510

$86,838,000

$19,959,838

$818,353,348 2035

$818,353,348

$86,838,000

$18,287,884

$749,803,232 2036

$749,803,232

$86,838,000

$16,574, 131

$679,539,363 2037

$679,539,363

$86,838,000

$14,817,534

$607,518,897 2038

$607,518,897

$86,838,000

$13,017,022

$533,697,919 2039

$533,697,919

$86,838,000

$11, 171,498

$458,031,417 2040

$458,031,417

$86,838,000

$9,279,835

$380,473,253 Rate Assumptions Rates of escalation used in estimating future decommissioning costs 3%

Rates of Earnings on Decommissioning Funds Post-tax4 5.5%

Contracts Relied Upon to Demonstrate Decommissioning Funding Assurance [50.75(e) (1) (v)]: None Modifications to the District's Current Method of Providing Financial Assurance: None Material Changes to Decommissioning Trust Agreement: None NOTE 1: The District continues to maintain its Decommissioning Trust Fund investments in fixed income securities as required by Nebraska State Statutes.

4 The assumed annual real rate of return is 2.50 percent. The District's Board of Directors (as the licensee's rate setting authority) has approved this assumption for the decommissioning funding plan for Cooper Nuclear Station through the adoption of a Board Resolution, dated June 13, 2008, as part of its official business. There has been no change to that Board Resolution, which was submitted as part of the July 14, 2011, RAI response.

2