ML070890622

Monticello, Palisades, Point Beach, Prairie Island Nuclear Power Plants, Decommissioning Funding Status Reports

ML070890622
Person / Time
Site:	Monticello, Palisades, Point Beach, Prairie Island
Issue date:	03/30/2007
From:	Weinkam E J Nuclear Management Co
To:	Document Control Desk, NRC/NRR/ADRO
References
L-HU-07-011
Download: ML070890622 (8)

Text

Commiffed to Nuclear Excellence

/ Nuclear Management Company, LLC March 30,2007 L-HU-07-01 I 10 CFR 50.75(f) (1) U.S. Nuclear Regulatory Commission ATTN: Document Control Desk Washington, D.C. 20555-0001 Monticello Nuclear Generating Plant Palisades Nuclear Plant Docket 50-263 Docket 50-255 License No. DPR-22 License No. DPR-20 Point Beach Nuclear Plant, Units I and 2 Prairie Island Nuclear Generating Plant Dockets 50-266 and 50-301 Units 1 and 2 License Nos. DPR-24 and DPR-27 Dockets 50-282 and 50-306 License Nos. DPR-42 and DPR-60 Decommissionina Fundinq 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. As holder of the plant operating licenses, Nuclear Management Company, LLC is submitting these reports on behalf of the plant owners and co-owners identified in each respective report.

The financial information presented herein, current as of December 31,2006, reflects information provided to Nuclear Management Company, LLC by each respective plant owner. This letter contahs no new commitments and no revisions to existing commitments.

\ Director, Nuclear Licensing and Regulatory Services Nuclear Management Company, LLC Enclosures cc: Administrator, Region Ill, USNRC Project Managers, above listed plants, USNRC NRC Resident Inspectors, above listed plants, USNRC 700 First Street Hudson, Wisconsin 54016 Telephone: 71 5.377.3300 www.nmcco.com Page 1 of 7 ENCLOSURES DECOMMISSIONING FUNDING STATUS REPORTS Enclosure Owner(s) Plant 1 Consumers Energy Company Palisades (PNP) 2 Wisconsin Electric Power Company Point Beach 1 (PBNP1) 3 Wisconsin Electric Power Company Point Beach 2 (PBNP2) 4 Xcel Energy Prairie Island 1 (PI1) 5 Xcel Energy Prairie Island 2 (PI2) 6 Xcel Energy Monticello (MNGP) 6 PAGES FOLLOW ENCLOSURE 1 Page 2 of 7 Consumers Energy Company Palisades Nuclear Plant Docket No. 50-255 License No. DPR-20 Decommissioning Funding Status Report As provided in 10 CFR 50.75(f)(1), 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)

$332,394,876

2. The amount accumulated at the end of the calendar year preceding the date of the report.

Total External Funds $597,615,739

3. Annual Annuity Years to Collect A schedule of the annual amounts remaining to be collected and deposited in external sinking fund as

approved by Michigan Public Service Commission (MPSC) in 1999, as amended September 20, 2005 in Case U-14150.

$5,500,000 5 yrs 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 (Nominal Rate Of Return)

Escalation Factor (Inflation)

Real Rate of Return (Projected)

Consumers Energy Company (100%) 6.4% 4.54% 1.86% Basis for Allowance: The Michigan Public Service Commission approved the escalation factor in its December 16, 1999, Order in Case No. U-11662.

5. Any contracts upon which the licensee is relying pursuant to 10 CFR 50.75(e) (1) (v).

None Consumers Energy has not relied on contract obligations to meet its NRC funding assurance.

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

report. None Consumers Energy has not modified its method of providing financial assurance.

7. Any material changes to trust agreements.

None Consumers Energy has agreed to sell its Palisades Nuclear Plant to Entergy Corporation.

ENCLOSURE 2 Page 3 of 7 Wisconsin Electric Power Company Point Beach Nuclear Plant, Unit 1 Docket No. 50-266 License No. DPR-24 Decommissioning Funding Status Report As provided in 10 CFR 50.75(f)(1), each power reactor licensee is required to report to the NRC on a calendar year basis, beginning on March 31, 1999, and every 2 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).

$299,371,756

2. The amount accumulated at the end of the calendar year preceding the date of the report.

Pre-Tax External $438,610,250

3. A schedule of the annual amounts remaining to be collected.

Annual Annuity Years to Collect Wisconsin Electric is in the process of selling the Point Beach Nuclear Plant to FPL Group Capital, Inc. $9,963,385 Unknown Pending Sale

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 (Nominal Rate Of Return)

Escalation Factor (Inflation)

Real Rate of Return (Projected)

Wisconsin Electric Power Company (100%)-Point Beach Unit 1 6.36% 6.02% 0.34% Basis for Allowance: Wisconsin Electric Power Company average Escalation Factor is 6.02%.

This composite rate is based on rates approved by the Public Service Commission, Wisconsin.

5. Any contracts upon which the licensee is relying pursuant to 10 CFR 50.75(e) (1) (v).

None 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.

Wisconsin Electric is in the process of selling the

Point Beach Nuclear Plant to FPL Group Capital, Inc. None ENCLOSURE 3 Page 4 of 7 Wisconsin Electric Power Company Point Beach Nuclear Plant, Unit 2 Docket No. 50-301 License No. DPR-27 Decommissioning Funding Status Report As provided in 10 CFR 50.75(f)(1), each power reactor licensee is required to report to the NRC on a calendar year basis, beginning on March 31, 1999, and every 2 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).

$299,312,255

2. The amount accumulated at the end of the calendar year preceding the date of the report.

Pre-Tax External $442,960,431

3. A schedule of the annual amounts remaining to be collected.

Annual Annuity Years to Collect Wisconsin Electric is in the process of selling the Point Beach Nuclear Plant to FPL Group Capital, Inc. $7,630,923 Unknown Pending Sale

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 (Nominal Rate Of Return)

Escalation Factor (Inflation)

Real Rate of Return (Projected)

Wisconsin Electric Power Company (100%)-Point Beach Unit 2 6.36% 6.02% 0.34% Basis for Allowance: Wisconsin Electric Power Company average Escalation Factor is 6.02%.

This composite rate is based on rates approved by the Public Service Commission, Wisconsin.

5. Any contracts upon which the licensee is relying pursuant to 10 CFR 50.75(e) (1) (v).

None 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.

Wisconsin Electric is in the process of selling the Point Beach Nuclear Plant to FPL Group Capital, Inc. None ENCLOSURE 4 Page 5 of 7 Xcel Energy 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)(1), 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).

$302,693,976

2. The amount accumulated at the end of the calendar year preceding the date of the report.

External $355,256,591 The internal fund is being transferred to the

external fund on a prescribed schedule.

Internal $1,446,421 Total $356,703,012

3. A schedule of the annual amounts remaining to be collected.

Annual Annuity Years to Collect The external funding amount is on a prescribed

schedule per MPUC Docket# E-002/M-05-1648

effective March 23, 2006.

$14,796,357 6.8 yrs 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 (Nominal Rate Of Return)

Escalation Factor (Inflation)

Real Rate of Return (Projected)

Xcel Energy (100%)- Prairie Island 1 5.40% 3.61% 1.79% Basis for Allowance: Xcel Energy files a triennial decommissioning study with the Minnesota Public Utilities Commission 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.

5. Any contracts upon which the licensee is relying pursuant to 10 CFR 50.75(e) (1) (v).

None 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 ENCLOSURE 5 Page 6 of 7 Xcel Energy 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)(1), 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).

$302,693,976

2. The amount accumulated at the end of the calendar year preceding the date of the report.

External $378,390,898 The internal fund is being transferred to the

external fund on a prescribed schedule.

Internal $1,772,461 Total $380,163,359

3. A schedule of the annual amounts remaining to be collected.

Annual Annuity Years to Collect The external funding amount is on a prescribed

schedule per MPUC Docket# E-002/M-05-1648

effective March 23, 2006.

$18,847,075 7.8 yrs 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 (Nominal Rate Of Return)

Escalation Factor (Inflation)

Real Rate of Return (Projected)

Xcel Energy (100%)- Prairie Island 2 5.40% 3.61% 1.79% Basis for Allowance: Xcel Energy files a triennial decommissioning study with the Minnesota Public Utilities Commission 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.

5. Any contracts upon which the licensee is relying pursuant to 10 CFR 50.75(e) (1) (v).

None 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 ENCLOSURE 6 Page 7 of 7 Xcel Energy Monticello Nuclear Generating Plant Docket No. 50-263 License No. DPR-22 Decommissioning Funding Status Report As provided in 10 CFR 50.75(f)(1), 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).

$430,794,233

2. The amount accumulated at the end of the calendar year preceding the date of the report.

External $440,605,729 The internal fund is being transferred to the

external fund on a prescribed schedule.

Internal $1,763,305 Total $442,369,034

3. A schedule of the annual amounts remaining to be collected. Annual Annuity Years to Collect The external funding amount is on a prescribed

schedule per MPUC Docket# E-002/M-05-1648

effective March 23, 2006.

$8,989,216 13.75 yrs

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 (Nominal Rate Of Return)

Escalation Factor (Inflation)

Real Rate of Return (Projected)

Xcel Energy (100%)- Monticello 5.40% 3.61% 1.79% Basis for Allowance: Xcel Energy files a triennial decommissioning study with the Minnesota Public Utilities Commission 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.

5. Any contracts upon which the licensee is relying pursuant to 10 CFR 50.75(e) (1) (v).

None 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