ML110960073
| ML110960073 | |
| Person / Time | |
|---|---|
| Site: | Browns Ferry, Watts Bar, Sequoyah  |
| Issue date: | 03/31/2011 |
| From: | Krich R Tennessee Valley Authority |
| To: | Document Control Desk, Office of Nuclear Reactor Regulation |
| References | |
| TAC ME0491, TAC ME0492, TAC ME0493, TAC ME0571, TAC ME0572, TAC ME0587 | |
| Download: ML110960073 (6) | |
Text
Tennessee Valley Authority 1101 Market Street, LP 3R Chattanooga, Tennessee 37402-2801 R. M. Krich Vice President Nuclear Licensing March 31, 2011 10 CFR 50.75(f)(1)
ATTN: Document Control Desk U S. Nuclear Regulatory Commission Washington, D.C. 20555-0001 Browns Ferry Nuclear Plant, Units 1, 2, and 3 Facility Operating License Nos. DPR-33, DPR-52, and DPR-68 NRC Docket Nos. 50-259, 50-260, and 50-296 Sequoyah Nuclear Plant, Units 1 and 2 Facility Operating License Nos. DPR-77 and DPR-79 NRC Docket Nos. 50-327 and 50-328 Watts Bar Nuclear Plant, Unit 1 Facility Operating License No. NPF-90 NRC Docket No. 50-390
Subject:
Decommissioning Funding Status Report
References:
- 1. Letter from TVA to NRC, "TVA - Decommissioning Funding Status Report - Browns Ferry (BFN) TAC Nos. ME0491, ME0492 and ME0493); Sequoyah (SQN) (TAC Nos ME0571 and ME0572); and Watts Bar (WBN) (TAC No. ME0587) Nuclear Plants," dated March 31, 2009
- 2. Letter from TVA to NRC, "Decommissioning Funding Assurance,"
dated September 4, 2009
- 3. Letter from NRC to TVA, "Browns Ferry Nuclear Plant, Units 1, 2, and 3; Sequoyah Nuclear Plant, Units 1 and 2; Watts Bar Nuclear Plant, Unit 1 - Status of Decommissioning Funding Assurance (TAC Nos. ME0491, ME0492, ME0493, ME0571, ME0572, and ME0587)," dated December 10, 2009 pit r printed on recycled paper
U.S. Nuclear Regulatory Commission Page 2 March 31, 2011 In accordance with the requirements of 10 CFR 50.75(f)(1), the Tennessee Valley Authority (TVA) is reporting on the status of decommissioning funding for Browns Ferry Nuclear Plant (BFN), Units 1, 2, and 3; Sequoyah Nuclear Plant (SQN), Units 1 and 2; and Watts Bar Nuclear Plant (WBN), Unit 1. The reporting requirements and corresponding TVA information are provided below.
- 1. The amount of decommissioning funds estimated to be requiredpursuantto 10 CFR 50.75(b) and (c):
Decommissioning cost estimates were calculated using the formulas provided in NUREG-1307, Revision 14, "Report on Waste Burial Charges," utilizing the waste burial adjustment factors for Generic Low-Level Waste (LLW) Disposal Site and Direct Disposal with Vendors. Bureau of Labor Statistics indices for the end of the 2010 calendar year were taken from the sources referenced by NUREG-1 307.
The calculated estimates for the end of calendar year (CY) 2010 are provided in Table 1 below.
Table 1. Decommissioning Cost Estimates for end of CY 2010 BFN 3 609.1 1827.3 SQN 2 467 934 WBN 1 467 467
- 2. The amount accumulatedin the TVA decommissioning fund at the end of the calendaryear 2010 for the items included in 10 CFR 50.75(b) and (c):
TVA's decommissioning fund balances at the end of CY 2010 are provided below in Table 2.
Table 2. Decommissionii F.7 -1F75 V BFN, Unit 1 164.95 BFN, Unit 2 157.71 BFN, Unit 3 142.01 SQN, Unit 1 227.45 SQN, Unit 2 216.43 WBN, Unit 1 105.79
U.S. Nuclear Regulatory Commission Page 3 March 31, 2011 Note that these fund balances are all in excess of the 2010 fund balances required for each plant based on the updated TVA plan provided in Enclosure 1 and discussed under item 3, below.
- 3. A schedule of the annual amounts remaining to be collected for items in 10 CFR 50.75(b) and (c):
By letter dated March 31, 2009 (Reference 1), TVA reported that due to a downturn which resulted in lower market valuations for many investments held in TVA's decommissioning trust fund, the decommissioning trust fund balances for TVA's BFN, SQN, and WBN were below Nuclear Regulatory Commission (NRC) minimum required amounts. Subsequently, by letter dated September 4, 2009 (Reference 2), TVA provided NRC with the details of a plan which utilized an external sinking fund approach to provide decommissioning funding assurance for each nuclear unit at the end of its respective term of licensed operation. The NRC staff reviewed TVA's plan and determined that it provides reasonable assurance of adequate decommissioning funding at the time permanent termination of operations is expected (Reference 3).
Enclosure 1 to this letter provides TVA's updated plan for providing decommissioning funding for each of its operating nuclear reactors based on the cost estimates at the end of CY 2010. This plan constitutes the schedule of the annual amounts remaining for items in 10 CFR 50.75(b) and (c). TVA will continue to follow the plan reflected in Enclosure 1, as updated.
TVA discussed the updated plan. provided in Enclosure 1 with the NRC during a conference call on March 23, 2011. During that call, the NRC requested that TVA recalculate the plan provided in Enclosure 1 using actual fund balances for each of the units at the end of CY 2010. For information only, Enclosure 2 provides the results of this recalculation.
- 4. The assumptions used regardingrates of escalationin decommissioning costs, rates of earningson decommissioning funds, and rates of other factors used in funding projections:
- The assumed escalation in decommissioning costs is 4 percent.
- TVA assumed a projected annual real rate of return on decommissioning funds of 5 percent, as authorized by the TVA Board of Directors, TVA's rate-making authority.
- 5. Any contracts upon which the licensee is relying pursuantto 10 CFR 50.75(e)(1)(v):
None.
U.S. Nuclear Regulatory Commission Page 4 March 31, 2011
- 6. Any modifications occurringto a licensee's current method of providing financial assurancesince the last submitted report:
None.
- 7. Any material changes to trust agreements.
None.
If you have any questions concerning this matter, please contact Josh Perrel at 423-751-7737.
Respectfully, R. M. rc
Enclosures:
- 1. Updated Projected Decommissioning Funding Levels for TVA Operating Units
- 2. Projected Decommissioning Funding Levels for TVA Operating Units Using End of Calendar Year 2010 Fund Balances cc:
NRC Regional Administrator - Region II NRC Senior Resident Inspector - Browns Ferry Nuclear Plant NRC Senior Resident Inspector - Sequoyah Nuclear Plant NRC Senior Resident Inspector- Watts Bar Nuclear Plant
ENCLOSURE I Updated Projected Decommissioning Funding Levels for TVA Operating Units Real Return 5.0%
,
Annual BFNI 12-20-20339, Annual Funding Projected Fund Annual BFN2 6-28-2034..,..
Annua, Funding Prjected Fund Annual BFN31"7-2-2036 Annual Funding Projected Fund Annual SQNI 9-17-2020, Annual Funding Prjected Fund j Annual SQN29ý16-202i Annual Funding i
Poected Fund
. J Annual WBN1.11-9,2035..
Ana" Funding Projected Fund Year Disbursement Assurance Balance Disbursement Assurance Balance Disbursement Assurance Balance Disbursement Assurance Balance Disbursement Assurance Balance Disbursement Assurance Balance 2008 $107.4 $102;7:% $92.5 $148.1 $140.9 $6W.9
- $1.9 2009 2010
$2.0
$2.1
$114.8
$122.7
$2.1
$2.2
$109.9
$117.6 _$2;o.6
$2.0 ...
$99.0
$105.9
$4.5
$4.7
$160.0
$172.7
$4.0
- 0i:
$4.3
........
$152.0
............
$163.9 111:9 $1.4
$1.5
$73.8
$78.9
$126.6 $8.0 2011 $3.1 $132.0 $3.1 $2.8 $8.9 $180.0 $2.6 2012 $3.1 $141.7 $3.1 $136.A $2.8 $122.4 $8.9 $208.7 $8.0 $197.0 $2.6 $92.3 2013 $3.1 $152.0 $3.1 $146.0 $2.8 $131.3 $8.9 $228.0 $8.0 $214.8 $2.6 $99.5 2014 $3.1 $162.7 $3.1 $156.5 $2.8 $140.7 $8.9 $248.3 $8.0 $233.5 $2.6 $107.1 2015 $3.1 $174.0 $3.1 $167.4 $2.8 $150.5 $8.9 $269.6 $8.0 $253.2 $2.6 $115.0 2016 $3.1 $185.8 $3.1 $178.9 $2.8 $160.8 $8.9 $292.0 $8.0 $273.8 $2.6 $123.4 2017 $3.1 $198.2 $3.1 $191.0 $2.8 $171.6 $8.9 $315.5 $8.0 $295.4 $2.6 $132.1 2018 $3.1 $211.3 $3.1 $203.7 $2.8 $182.9 $8.9 $340.2 $8.0 $318.2 $2.6 $141.3 2019 $3.1 $224.9 $3.1 $217.0 $2.8 $194.9 $8.9 $366.1 $8.0 $342.0 $2.6 $151.0 2020 $3.1 $239.3 $3.1 $231.0 $2.8 $207.4 Fractional Yr. $388.0 $8.0 $367.1 $2.6 $161.1 2021 $3.1 $254.4 $3.1 $245.6 $2.8 $220.5 Fractional Yr. $8.0 $388.0 $2.6 $171.7 2022 $3.1 $270.3 $3.1 $261.0 $2.8 $234.3 Additional 3.5 yrs. $2.6 $182.9 2023 $3.1 $286.9 $3.1 $277.2 $2.8 $248.8 Eamings Credit $79.0 Additional 3.5 yrs. $2.6 $194.6 2024 $3.1 $304.4 $3.1 $294.2 $2.8 $264.0 $467.0 $467.0 Earnings Credit $79.0 $2.6 $206.9 2025 $3.1 $322.8 $3.1 $312.0 $2.8 $280.0 $467.0 $467.0 $2.6 $219.9 2026 $3.1 $342.0 $3.1 $330.8 $2.8 $296.8 $2.6 $233.4 2027 $3.1 $362.3 $3.1 $350.4 $2.8 $314.4 $2.6 $247.7 2028 $3.1 $383.5 $3.1 $371.1 $2.8 $332.9 $2.6 $262.7 2029 $3.1 $405.8 $3.1 $392.8 $2.8 $352.3 $2.6 $278.4 2030 $3.1 $429.3 $3.1 $415.6 $2.8 $372.7 $2.6 $294.9 2031 $3.1 $453.9 $3.1 $439.5 $2.8 $394.1 $2.6 $312.2 2032 $3.1 $479.7 $3.1 $464.6 $2.8 $416.6 $2.6 $330.4 2033 Fractional Yr. $3.1 $506.1 $3.1 $490.9 $2.8 $440.2 $2.6 $349.5 Fractional Yr. $3.1 $506.1 2034 $2.8 $465.0 $2.6 $369.6 2035 Additional 3.5 yrs. $2.8 $491.0 Fractional Yr. $2.6 $388.0
$103.0 Additional 3.5 yrs. $2.8 2036 Earnings Credit Fractional Yr. $506.1 2037 $609.1 $609.1 Eaminqs Credit $103.0 Additional 3.5 yrs.
- . I-
2038 $609.1 $609.1 Additional 3.5 yrs. Earnings Credit $79.0 2039 Eaminas Credit $103.0 $467.0{ $467.0 2040 $609.1 $609.1 2041 2042 2043 2044 Total $609.1 $609.1 $609.1 $467.0 $467.0 $467.0 ALL DOLLARS IN MILLIONS
ENCLOSURE 2 Projected Decommissioning Funding Levels for TVA Operating Units Using End of Calendar Year 2010 Fund Balances Real I*, 'BFN11220-2033" BFN2 6-28-2034 BFN3 7-292036 . SQNi 9-172020 * ; ,!N2,9-1542021 WBNI11--92035 Return Annual Projected Annual - IProjected Annual JProjected Annual Projected Annual Projected Annual TProjected 5.0% Annual I Funding Fund Annual I Funding Fund Annual Funding Fund Annual Funding Fund Annual Funding Fund Annual Funding Fund Year Diabursement Assurance Balance Disbursement Assurance Balance Disbursement Assurance Balance Disbursement Assurance Balance Disbursement 4 Assurance Balance Disbursement AssuranceI Balance 2010 $165.0 $14oP.C -$227.5. $216.4
$228.9 ::$105.8..
$0.0 $173.3 $0.2 $165.8 $0.3 $149.4 $1.8 $240.6 $1.6 $0.7 $111.8 2012 $0.0 $181.9 $0.2 $174.3 $0.3 $157.1 $1.8 $254.5 $1.6 $242.0 $0.7 $118.0 2013 $0.0 $191.0 $0.2 $183.3 $0.3 $165.2 $1.8 $269.0 $1.6 $255.7 $0.7 $124.6 2014 $0.0 $200.6 $0.2 $192.7 $0.3 $173.7 $1.8 $284.3 $1.6 $270.1 $0.7 $131.5 2015 $0.0 $210.6 $0.2 $202.5 $0.3 $182.7 $1.8 $300.3 $1.6 $285.3 $0.7 $138.8 2016 $0.0 $221.1 $0.2 $212.9 $0.3 $192.1 $1.8 $317.2 $1.6 $301.2 $0.7 $146.4 2017 $0.0 $232.2 $0.2 $223.7 $0.3 $202.0 $1.8 $334.9 $1.6 $317.9 $0.7 $154.4 2018 $0.0 $243.8 $b.2 $235.2 $0.3 $212.3 $1.8 $353.4 $1.6 $335.4 $0.7 $162.8 2019 $0.0 $256.0 $0.2 $247.1 $0.3 $223.2 $1.8 $372.9 $1.6 $353.9 $0.7 $171.6 2020 $0.0 $268.8 $0.2 $259.7 $0.3 $234.6 Fractional Yr. $1.8 $388.0 $1.6 $373.2 $0.7 $180.9 2021 $0.0 $282.2 $0.2 $272.9 $0.3 $246.6 Fractional Yr. $1.6 $388.0 $0.7 $190.6 2022 $0.0 $296.3 $0.2 $286.8 $0.3 $259.2 Additional 3.5 yrs. $0.7 $200.8 2023 r*
$0.0 $311.1 $0.2 $301.4 $0.3 $272.4 Earnings Credit $79.0 Additional 3.5 y s. $0.7 $211.5 2024 $0.0 $326.7 $0.2 $316.7 $0.3 $286.3 $467.0 $467.0 Earnings Credit $79.0 $0.7 $222.8 2025 $0.0 $343.0 $0.2 $332.7 $0.3 $300.9 $467.0 $467.0 $0.7 $234.6 2026 $0.0 $360.2 $0.2 $349.6 $0.3 $316.2 $0.7 $247.0 2027 $0.0 $378.2 $0.2 $367.3 $0.3 $332.3 $0.7 $260.0 2028 $0.0 $397.1 $0.2 $385.9 $0.3 $349.2 $0.7 $273.7 2029 $0.0 $416.9 $0.2 $405.4 $0.3 $366.9 $0.7 $288.1 2030 $0.0 $437.8 $0.2 $425.9 $0.3 $385.5 $0.7 $303.1 2031 $0.0 $459.7 $0.2 $447.4 $0.3 $405.0 $0.7 $319.0 2032 $0.0 $482.7 $0.2 $470.0 $0.3 $425.6 $0.7 $335.6 2033 Fractional Yr. $0.0 $506.1 $0.2 $493.7 $0.3 $447.1 $0.7 $353.1 L I 2034 Fractional Yr. $0.2 $506.1 $0.3 $469.7 $0.7 $371.4 2035 Additional 3.5 yrs. $0.3 $493.5 Fractional Yr. $0.7 $388.0 2036 Eaminasv Credit $103.0 Additional 3.5 yrs. Fractional Yr. $0.3 $506.1 2037 $609.1 $609.1 Earnings Credit $103.0 Additional 3.5 yrs.
2038 $609.1 $609.1 Additional 3.5 yrs. Earnings Credit $79.0 2039 Eaminas Credit $103;0 $467.0 $467.0 2040 $609.1 $609.1 2041 2042 2043 2044 Total $609.1 $609.1 $609.1 $467.0 $467.0 $467.0 ALL DOLLARS IN MILLIONS