CNL-19-008, Decommissioning Funding Status Report
| ML19085A372 | |
| Person / Time | |
|---|---|
| Site: | Browns Ferry, Watts Bar, Sequoyah  |
| Issue date: | 03/26/2019 |
| From: | Henderson E K Tennessee Valley Authority |
| To: | Document Control Desk, Office of Nuclear Reactor Regulation |
| References | |
| CNL-19-008 | |
| Download: ML19085A372 (6) | |
Text
10 CFR 50.75(f)(1) Tennessee Valley Authority , 1101 Market Street, Chattanooga, Tennessee 37402 CNL-19-00 8 Marc h 2, 2019 ATTN: Document Control D esk U.S. Nuclear Regulatory Commission Washington, D.C. 20555-0001 Browns Ferry Nuclear Plant, Units 1, 2, and 3 Renewed Facility Operating License Nos. DPR
-68 NRC Docket Nos. 50
-259, 50-260, and 50
-296 Sequoyah Nuclear Plant, Units 1 and 2 Renewed Facility Operating License Nos. DPR
-77 and DPR
-79 NRC Docket Nos. 50
-327 and 50
-328 Watts Bar Nuclear Plant, Units 1 and 2 Facility Operating License No
- s. 50-390 and 50-391
Subject:
Decommissioning Funding Status Report
References:
- 1. TVA letter to NRC, CNL 021 , "Decommissioning Funding Status Report," dated March 30 , 2017 (ML17090A189) 2.TVA letter to NRC, CNL 189, "Decommissioning Funding Update,"dated September 10, 2015 (ML15253A867)In accordance with the requirements of 10 CFR 50.75(f)(1), 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), Units 1 and 2. The reporting requirements and corresponding TVA information follow. 1.The amount of decommissioning funds estimated to be required pursuant to 10 CFR 50.75(b) and (c):Decommissioning cost estimates were calculated using the formulas provided inNUREG-1307, Revision 17, "Report on Waste Burial Charges," utilizing the waste burialadjustment factors for Generators Located in the Unaffiliated States and those Located inCompact-Affiliated States having no Disposal Facility. Bureau of Labor Statistics indicesfor the end of the 2018 calendar year were taken from the sources referenced byNUREG-1307. The calculated estimates for the end of calendar year (CY) 2018 ar e U.S. Nuclear Regulatory Commission CNL-19-008 Pag e 2 Marc h 2, 2019 provided in Table 1. The dollar amounts shown in Table 1 have been rounded to the nearest hundred thousand dollars.
Table 1. Decommissioning Cost Estimates for end of CY 201 8 Plant Number of Units Cost per Unit
($, in millions) Total Plant Cost
($, in millions) BFN 3 671.1 2,013.3 SQN 2 508.0 1,015.9 WBN 2 508.0 1,015.9 2.The amount accumulated in the TVA decommissioning fund at the end of the calendaryear 2018 for the items included in 10 CFR 50.75(b) and (c):TVA's decommissioning fund balances for each of the seven units at the end of CY 2018are provided in Table
- 2. The dollar amounts shown in Table 2 have been rounded to thenearest dollar.Table 2. Decommissioning Trust Fund Balances Plant, Unit Decommissioning Fund Balance
($) BFN, Unit 1 382,129,027 BFN, Unit 2 372,441,358 BFN, Unit 3 337,644,437 SQN, Unit 1 211,311,189 SQN, Unit 2 201,304,966 WBN, Unit 1 267,806,997 WBN, Unit 2 101,186,523 3.A schedule of the annual amounts remaining to be collected for items in 10 CFR 50.75(b)and (c):TVA has established a method to provide funding assurance on an ongoing basis. Thismethod establishes a projection of necessary funds at the end of each calendar yearbased upon current decommissioning cost estimates and assumptions regarding escalation and rate of earnings. Each year, TVA reviews the performance of itsdecommissioning trust fund. If funds fall below an established threshold of 95 percent of projected trust fund balances, TVA will make contributions to the trust fund or provide othermethods of funding assurance to ensure adequate funding.
U.S. Nuclear Regulatory Commission CNL-19-008 Pag e 3 Marc h 2, 2019 The table attached to TVA's March 30 , 201 7, letter (Reference 1) has been updated herein for the current calculated obligations, expressed in current dollars. This updated table is provided in the enclosure to this letter. At the end of 201 8, the trust fund unit balances shown in Table 2 were greater than the respective present values of the costs to decommission each unit. Therefore, no amounts are scheduled to be collected at this time. 4.The assumptions used regarding rates of escalation in decommissioning costs, rates ofearnings on decommissioning funds, and rates of other factors used in funding projections:The assumed escalation in decommissioning costs is four percent.TVA assumed a projected annual real rate of return on decommissioning funds offive percent, as authorized by the TVA Board of Directors, TVA's rate
-makingauthority.
5.Any contracts upon which the licensee is relying pursuant to 10 CFR 50.75(e)(1)(v):None.6.Any modifications occurring to a licensee's current method of providing financial assurance since the last submitted report:None.7.Any material changes to trust agreements.None. TVA's Six th Amendment to the TVA Master Decommissioning Trust Agreementwas provided as Enclosure 1 to Reference 2.There are no new regulatory commitments associated with this submittal. If you have any questions concerning this matter, please contact Gordon Williams at 423-751-2687. Respectfully, Erin K. Henderson Director, Nuclear Regulatory Affairs
Enclosure:
Updated Projected Decommissioning Funding Levels for TVA Operating Units
U.S. Nuclear Regulatory Commission CNL-19-008 Pag e 4 Marc h 2, 2019 cc (Enclosure):
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 NRC Project Manager - Browns Ferry Nuclear Pl ant NRC Project Manager - Sequoyah Nuclear Plant NRC Project Manager - Watts Bar Nuclear Plant
ENCLOSURE Updated Projected Decommissioning Funding Levels for TVA Operating Units