NL-13-0675, Financial Assurance Requirements for Decommissioning Nuclear Power Reactors (10 CFR 50.75(f)(1))

Financial Assurance Requirements for Decommissioning Nuclear Power Reactors (10 CFR 50.75(f)(1))

ML13091A215
Person / Time
Site:	Farley
Issue date:	03/29/2013
From:	Pierce C Southern Co, Southern Nuclear Operating Co
To:	Document Control Desk, Office of Nuclear Reactor Regulation
References
NL-13-0675
Download: ML13091A215 (9)

Text

Charles R. Pierce Regulatory AffairsDirector Southern Nuclear Operating Company, Inc.

40 Inverness Center Parkway Post Office Box 1295 Birmingham, Alabama 35201 Te l 205.992.7872 Fax 205.992.7601 March 29, 2013 SOUIHERN A COMPANY Docket Nos.: 50-348 50-364 NL-13-0675 U. S. Nuclear Regulatory Commission ATTN: Document Control Desk Washington, D. C. 20555-0001 Joseph M. Farley Nuclear Plant Financial Assurance Requirements for Decommissioning Nuclear Power Reactors (10 CFR 50.75(f)(1))

Ladies and Gentlemen:

Pursuant to 10 CFR 50.75(f)(1), each power reactor licensee is required to report to the NRC the status of its decommissioning funding for each reactor or part of each reactor it owns on a calendar year basis, beginning on March 31,1999, and every two years thereafter. Southern Nuclear Operating Company (Southern Nuclear) holds operating licenses NPF-2 and NPF-8 for the Joseph M. Farley Nuclear Plant Unit 1 and Unit 2, respectively, owned by Alabama Power Company. Accordingly, Southern Nuclear provides the enclosed Alabama Power Company submittal in accordance with the requirements of 10 CFR 50.75(f)(1).

This letter contains no NRC commitments. If you have any questions, please contact Ken McElroy at (205) 992-7369.

Sincerely, C.1(~

C. R. Pierce Regulatory Affairs Director CRPITWS/lac

Enclosure:

Alabama Power Company Response

U.

Nuclear Regulatory Commission NL-13-0675 2

cc: Alabama Power Company Ms. A. Allcorn-Walker, Vice President, Comptroller Mr. C. Blake, Assistant Treasurer Southern Nuclear Operating Company Mr.

E. Kuczynski, Chairman, President &

Mr. D. G. Bost, Executive Vice President &Chief Nuclear Mr.

A. Lynch, Vice President - Farley Mr.

L. Ivey, Vice President - Regulatory Affairs Mr. B. J. Adams, President -

Operations RTYPE: CFA04.054 Mr. V. M. McCree, Regional Administrator Ms.

A. Brown, NRR Project Manager Farley Mr. P. K. Niebaum, Senior

- Farley Mr. J. R. Sowa, Senior Resident - Farley

Joseph M. Farley Nuclear Plant Financial Assurance Requirements for Decommissioning Nuclear Power Reactors (10 CFR 50.75(f)(1>>

Enclosure Alabama Power Company Response

Chris Blake, CPA, CMA 600 North 18th Street Assistant Treasurer Post Office Box 264 1 Treasury Services Birmingham, Alabama 35291-0040 Te l 205. 257.3618 Fax 205.257. 1023 ALABAMA'\\

POWER A SOUTHERN COMPANY March 6, 2013 Docket Nos,:

50-348 50-364 US Nuclear Regulatory Commission ATTN: Document Control Desk Washington, D.c. 20555 Joseph M, Farley Nuclear Plant Financial Assurance Requirements for Decommissioning Nuclear Power Reactors [10 CFR 50,75[0(1))

Dear Ladies and Gentlemen:

Pursuant to 10 CFR 50.75(f)(1), each power reactor licensee is required to report to the NRC the status of its decommissioning funding for each reactor or part of each reactor it owns on a calendar year basis, beginning on March 31, 1999, and every two years thereafter. Alabama Power Company (APC) hereby submits the enclosed information in accordance with 10CFR 50.75(f)(1) for operating licenses NPF-2 and NPF-8 issued for Joseph M. Farley Nuclear Plant Unit 1 and 2, respectively.

Southern Nuclear Operating Company, as the operating licensee and as an agent for the owner of Farley Nuclear Plant, is providing this information to the NRC on behalf of APC.

Based on the information presented herein, there is reasonable assurance that the funding necessary for decommissioning the Farley Nuclear Plant, consistent with the NRC prescribed minimum set forth in 10 CFR 50.75(c), will be available on the expiration date of the operating licenses NPF-2 and NPF-8.

Please advise if you have any questions or comments regarding the information provided herein.

Respectfully submitted, ALABAMA POWER COMPANY, by, Christopher R. Blake CRB:kph Enclosure

Enclosure Alabama Power Company Ownership Percentage -100%

10 CFR 50.75(f)(1) Requirement Unit 1 Unit 2

• The NRC minimum decommissioning estimate, 2

$ 485,342,000 2 i pursuant to 10 CFR 50.75(b) and (c). 1 2 : The amount accumulated at the end of the

$309,21

$296,156,008

. calendar year the date of the

! items included in 10 50.75(b) and 3

A schedule of the annual amounts to be See Schedule in See Schedule in i collected; for items in 10 CFR 50.75(b) and (c).

4 The assumptions used regarding:

rates of escalation in decommissioning 4.5%

4.5%

costs; (b) rates of on decommissioning funds; 7.0%

7.0%

(cl real rate of return; and 2.5% 3 2.5% 3 (d) rates of other factors used in funding N/A N/A projections.

5. Any contracts upon which the licensee is N/A N/A

! pursuant to 10 CFR 50.75(e)(1)(v).

No modifications 6

Any modifications to a licensee's current method External Fund of providing financial assurance since "Cost of Service" Rate Making the last submitted report.

Any material Ichcmgesto Itrw,! a.greements.

See Attachment 3 NOTES:

The NRC formulas in section 10 CFR include only those costs incurred by licensees to remove a facility or site safely from service and reduce residual radioactivity to levels that permit: (1) release of the property for unrestricted use and termination of the license; or (2) release of the property under restricted conditions and termination of the license. The cost of dismantling or demolishing non-radiological systems and structures is not included in the NRC decommissioning cost estimates. The costs of managing and storing spent fuel on-site until transfer to DOE are not included in the cost formulas.

2 This number is based on NUREG-1307, Rev. 15, for the burial factor (Option 2) and the June 30, 2012, BLS data for labor and energy. Use of June 30, 2012, BLS data best correlates with the July 1, burial costs used for determination of the burial escalation factor described in NUREG-1307, Rev. 15.

3 The real rate of return of 2.5% was established by the Alabama Public Service Commission's Order pertaining to Informal Docket U-3295 and subsequent submittals pursuant to that Order, most recently on October 2008.

Joseph M. Farley Nuclear Plant-Units 1 & 2 Financial Assurance Requirements for Decommissioning Nuclear Power Reactors Schedule of the Annual Amounts Remaining to be Collected Schedule the Annual Amounts Remaining to be Collected Alabama Power Company Farley Nuclear Plant Unit 1 2012 3

4 2015 2016 2017 8

9 2020 2022 2023 2024 2025 2026 2029 2032 2033 2034 2036 Beginning Fund 0

309,217,383 331,326,749 354,983,770 380,296,783 407,381 467,372,105 500,552,301 536,055,111 574,043,118 614,690,285 658,182,754 704,719,696 754,514,224 807,794,368 864,804,123 925,804,561 991 1,060,914,430 1,135,642,589 1,215,601 9

1,301,157,989 1,392,703,197 1,490,656,569 1,595,466,678 Fund 0

21,645,217 192,872 24,848,864 28,516,719 40,183,018 43,028,320 46,072,793 49,330,379 52,815,996 60,536,289 64,806,319 85,092,120 91,081,059 97,489,224 104,345,960 111 Fund 0

464,1 464,1 464,1 464,1 464,149 464,1 464,1 464,149 1

464,149 464,149 464,149 464,149 464,149 464,149 464,149 1

149 464,149 464,1 464,149 464,149 464,149 464,149 464,149 Ending Fund 309,217,383 331,326,749 354,983,770 105 500,552,301 111 574,043,118 614,690,285 658,182,754 9,696 4,224 807,794,368 123 1,060,914,430 1,135,642,589 1

5,601,719 1,301,157,989 1,392,703,197 1,490,656,569 1

,678 1

Over (Under)

Minimum Decommissioning 632,041 660,483,403 690,205,1 721,264,388 753,721 787,638,743 823,082,486 860,121,1 981 1

1,071,867,501 1,120,101 1,170,506,1 1

1 1,278,221 1,335,741 1,395,850,306 1,458,663,570 248,949,925 Schedule of the Annual Amounts Remaining to be Collected Alabama Power Company Farley Nuclear Plant Unit 2 Changes to Trust Agreement 2011 Investment Management Agreement Decommissioning Trust.