ML070890110

Cooper Nuclear Station, Fifth Biennial Report on Financial Assurance for Decommissioning Planning

ML070890110
Person / Time
Site:	Cooper
Issue date:	03/27/2007
From:	Fleming P V Nebraska Public Power District (NPPD)
To:	Document Control Desk, NRC/NRR/ADRO
References
NLS2007023
Download: ML070890110 (4)

Text

H Nebraska Public Power District Always there when you need us NLS2007023 March 27, 2007 U.S. Nuclear Regulatory Commission Attention:

Document Control Desk Washington, D.C. 20555-0001

Subject:

Decommissioning Funding Cooper Nuclear Station, Docket No. 50-298, DPR-46 The purpose of this letter is to provide Nebraska Public Power District's Fifth Biennial Report on Financial Assurance for Decommissioning Planning for Cooper Nuclear Station in accordance with 10 CFR 50.75(f)(1), Reporting and Recordkeeping for Decommissioning Planning.

The 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, the assumptions used regarding rates of escalation in decommissioning costs, and the rate of earnings on decommissioning funds.Should you have any questions concerning this matter, please contact me at (402) 825-2774.Sincerely, Licensing Manager/jk Enclosure cc: Regional Administrator w/enclosure USNRC -Region IV Senior Resident Inspector w/enclosure USNRC-CNS Cooper Project Manager w/enclosure USNRC -NRR Project Directorate IV-!NPG Distribution w/o enclosure Records w/enclosure COOPER NUa STATION P.O. Box 98 / Brownville, NE 68321-0098 Telephone:

(402) 825-3811 / Fax: (402) 825-5211 www.nppd.com Aooý ATTACHMENT 3 LIST OF REGULATORY COMMITMENTS© I ATTACHMENT 3 LIST OF REGULATORY COMMITMENTSC Correspondence Number: NLS2007023 The following table identifies those actions committed to by Nebraska Public Power District (NPPD) in this document.

Any other actions discussed in the submittal represent intended or planned actions by NPPD. They are described for information only and are not regulatory commitments.

Please notify the Licensing Manager at Cooper Nuclear Station of any questions regarding this document or any associated regulatory commitments.

COMMITMENT COMMITTED DATE COMMITMENT NUMBER OR OUTAGE None 4 4 4 4.4 4 4 4 4 .4.1 .4 4 4 4 .4 I PROCEDURE 0.42 REvIsION 20 PAGE 18 OF 25 NLS2007023 Enclosure Page 1 of 2 NEBRASKA PUBLIC POWER DISTRICT Fifth Biennial Report on Financial Assurance for Decommissioning in accordance with 10 CFR 50.75(f) (1)Date: March 20, 2007 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 (2006 Dollars):

$450,186,000' Decommissioning Fund2 Total as of 12/31/2006:

$379,851,499 Schedule of Future Annual Fund Earnings and Decommissioning Cost Escalation:

3 Funding NRC Beginning Funding Requirement Fund Ending Minimum Year Balance Contribution In 2014 -2020 Interest Balance Escalated 2007 $379,851,499

$0 $20,891,832

$400,743,331

$450,186,000 2008 400,743,331 0 22,040,883 422,784,215 463,691,580 2009 422,784,215 0 23,253,132 446,037,346 477,602,327 2010 446,037,346 0 24,532,054 470,569,401 491,930,397 2011 470,569,401 0 25,881,317 496,450,718 506,688,309 2012 496,450,718 0 27,304,789 523,755,507 521,888,958 2013 523,755,507 0 28,806,553 552,562,060 537,545,627 2014 552,562,060 0 $81,468,880 25,910,125 497,003,305

$553,671,996 This updated estimate is based upon Nuclear Regulatory Commission (NRC) decommissioning minimum certification escalation requirements in 10 CFR 50.75(c) (1) and (2) and guidance per NUREG 1307 for a Boiling Water Reactor the size of Cooper Nuclear Station. The calculation utilizes the waste burial factor in Revision 11 of NUREG 1307 and Labor and Energy escalation factors derived from regional data of the U.S. Department of Labor Bureau of Labor Statistics.

2This is the total amount in the external sinking fund (as described in 10 CFR 50.75) to 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) necessary to fully fund the decommissioning trust by the end of the operating license (license expiration January 18, 2014), 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 (see 10 CFR 50.75(e) (1) (ii).I NLS2007023 Enclosure Page 2 of 2 Year 2015 2016 2017 2018 2019 2020 Beginning Balance 497,003,305 435,810,329 368,595,894 294,949,145 214,434,239

$126,588,900 Funding Contribution 0 0 0 0 0$0 Funding Requirement In 2014 -2020 83,912,946 86,430,335 89,023,245 91,693,942 94,444,760

$97,278,103 Fund Interest 22,719,970 19,215,900 15,376,496 11,179,036 6,599,421$1,612,094 Ending Balance 435,810,329 368,595,894 294,949,145 214,434,239 126,588,900

$30,922,891 NRC Minimum Escalated Rate Assumptions Rates of escalation used in estimating future decommissioning costs 6 3%Rates of Earnings on Decommissioning Funds Post-tax 4 0 5.5%Contracts Relied Upon to Demonstrate Decommissioning Funding Assurance 150.75(e)

(1) (v)]: Not applicable 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.4The 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 as part of its official business.2