ML15092A115

North Anna, Units 1 and 2, Submittal of Decommissioning Funding Status Report

ML15092A115
Person / Time
Site:	North Anna
Issue date:	03/30/2015
From:	Brickhouse T T Old Dominion Electric Cooperative
To:	Document Control Desk, Office of Nuclear Reactor Regulation
References
Download: ML15092A115 (4)

Text

ODECOld DominionElectric Cooperative 5MMarch 30, 2015United States Nuclear Regulatory Commission Attention:

Document Control DeskWashington, D. C. 20555-0001 License Nos. NPF-4,7OLD DOMINION ELECTRIC COOPERATIVE NORTH ANNA POWER STATION UNITS 1 AND 2DECOMMISSIONING FUNDING STATUS REPORTPursuant to 10 CFR 50.75(f)(1),

Old Dominion Electric Cooperative (ODEC), is providing this reporton the status of decommissioning funding for the North Anna Power Station (NAPS).Attachment 1 provides the following information for NAPS:NRC Minimum Financial Assurance Amount as of 12/31/2014 The following information is provided in support and as part of this filing:1. Preliminary December 2014 Bureau of Labor Statistics indices values are used because thefinal December 2014 indices values were not available at the time of this filing.2. The escalation of decommissioning costs is held at 0% based on assuming 2% Real Rate of.. .Return-.3. The growth rate on Trust Funds is held at the allowed 2% Real Rate of Return over theescalation rate.4. No rate regulatory authority citation for NAPS is referenced because the 2% Real Rate ofReturn allowed by 50.75(e)(1)(ii) is used in the calculations.

5. The current annual funding amounts shown for NAPS (Attachment

1) reflect only those fundamounts that are dedicated to radiological decommissioning.

6. Trust Fund amounts shown for each of the units in this report are market value and after-tax onrealized gains and losses. The Trust Fund balances have not been adjusted for unrealized gain or loss positions not currently taxable.AoD(4201 Dominion Boulevard Glen Allen, Virginia 23060*-%804-747-0592 JQ,804-747-3742 (a www.odec.com

7. Since the previous biennial submittal on March 27, 2013 (ML13091A004) for NAPS, therehave been no material changes to trust agreements established for nuclear decommissioning for the NAPS units.If you have any questions concerning this filing, please contact me at (804) 968-4012.

Sincerely, Todd T. Brickhouse Vice President

-Treasurer Old Dominion Electric Cooperative Attachment Commitments made in this letter: Nonecc: U. S. Nuclear Regulatory Commission Region IIMarquis One Tower245 Peachtree Center Avenue, NESuite 1200Atlanta, Georgia 30303-1257 Greg KolcumNRC Senior Resident Inspector North Anna Power Station1024 Haley DriveMineral, VA 23117Dr. V. Sreenivas NRC Project ManagerU. S. Nuclear Regulatory Commission, Mail Stop 08 G-9AOne White Flint North11555 Rockville PikeRockville, MD 20852-2738 9 4201 Dominion Boulevard

%:1 804-747-0592 Jli 804-747-3742

@ www.odec.com Glen Allen, Virginia 23060 IMs. K. CottonNRC Project ManagerU. S. Nuclear Regulatory Commission, Mail Stop 08 G-9AOne White Flint North11555 Rockville PikeRockville, MD 20852-2738 KDavid A. HeacockPresident and Chief Nuclear OfficerVirginia Electric and Power Company120 Tredegar StreetRichmond, VA 23219Richard P. AndersonManagerGeneration FinanceDominion Resources, Inc.120 Tredegar StreetRichmond, VA 23219Frederick D. GerloffDecommissioning Consultant Generation FinanceDominion Resources Inc.120 Tredegar StreetRichmond, Virginia 232194201 Dominion Boulevard Glen Allen, Virginia 23060%1 804-747-0592 JIQ 804-747-3742

@ www.odec.com Attachment IOLD DOMINION ELECTRIC COOPERATIVE NORTH ANNA POWER STATION UNITS 1 AND 22014 NUCLEAR DECOMMISSIONING FINANCIAL ASSURANCE In millions of dollars, except percentages and yearsNorth Anna' Unit 1 North Anna' Unit 2 Total For AllNPF-4 NPF-7 UpitsMethod for Providing External ExternalFinancial Assurance Sinking Fund Sinking FundNRC Minimum Financial Assurance Amounts as of 12/31/2014:

$ 53.33 $ 53.33 $106.66Funds in the External Trust as of 12/31/2014:

$ 71.99 $ 73.95 $145.93Allocated Radiological Funds Held in External Trust as of 12/31/2014 2: $ 49.67 $ 51.02 $100.68Allocated Radiological Funds Held in External Trust as of 12/31/14 minusNRC Minimum Amounts as of 12/31/142'3:

$ (3.67) $ (2.31)Projected Annual Escalation Factor: 0.000% 0.000%Annual Trust Funds Earnings Rate (After Taxes and Fees -assumes 2%Real Rate of Return):

2.000% 2.000%Year Operating Licenses Expire (Reflects License Renewals):

2038 2040NRC Minimum Financial Assurance Amounts at Start of Decommissioning:

$ 53.33 $ 53.33 $106.66Estimated Radiological Funds in External Trust at Start ofDecommissioning 2: $ 78.71 $ 84.77 $163.48Allocated Radiological Funds in Excess or (Under) to NRC MinimumFinancial Assurance Amounts at Start of Decommissioning 2'3'4: $ 25.38 $ 31.44 $56.82Estimated Radiological Funds in Excess or (Under) to NRC MinimumAmounts Discounted to 12/31/2014 Using the Annual Decommissioning Earnings Rate: $16.01 $18.92 $34.931 The North Anna Power Station is jointly owned by Virginia Electric and Power Company (88.4%) and Old Dominion Electric Cooperative (11.6%).However, Old Dominion Electric Cooperative is responsible for 10.74% of the decommissioning obligation.

The amounts stated in the above tablesreflect only that portion of the decommissioning obligation attributable to Old Dominion Electric Cooperative.

2 The Allocated Radiological Funds amounts shown exclude amounts designated for the future decommissioning of the independent spent fuelstorage installation, spent fuel management, and non-radiological decommissioning.

The amount of decommissioning funds is the after-tax amount offunds accumulated through December 31, 2014.3 Negative amounts (if any) indicate that the Trust fund values are less than the values of the NRC Minimum Amounts for the period indicated.

4 The future value calculation reflects a 2% real rate of return applied from January 1, 2015 to the start of decommissioning assuming a 0% escalation rate.ODEC serves the power requirements of its 11 member distribution cooperatives pursuant to long-term wholesale power contracts.

ODEC'swholesale power contracts with each of its member distribution cooperatives are substantially identical, while the schedules and exhibits to eachcontract are specific to each member. There have been no modifications to the current method of providing financial assurance since the reportsubmitted on March 27, 2013.