ML15097A014

Financial Assurance for Decommissioning - 2015 Update

ML15097A014
Person / Time
Site:	South Texas
Issue date:	03/26/2015
From:	Harrison G South Texas
To:	Document Control Desk, Office of Nuclear Reactor Regulation
References
NOC-AE-1 5003219, STI: 34054098
Download: ML15097A014 (15)

Text

Nuclear Operating Company South Texas Pro/ect Electric Generating Station 90 Bar 289 Madsmiorth.

Texas 77483 March 26, 2015 NOC-AE-1 5003219 File No.: D57, G25 10 CFR 50.75 U. S. Nuclear Regulatory Commission Attention:

Document Control Desk Washington, DC 20555-0001 South Texas Project Units 1 and 2 Docket Nos. STN 50-498, STN 50-499 Financial Assurance for Decommissioning

-2015 Update Pursuant to 10 CFR 50.75(f)(1), the STP Nuclear Operating Company (STPNOC) submits the attached status reports regarding funds available, effective December 31, 2014, for decommissioning South Texas Project Units 1 and 2. The data are assembled by the individual co-owners of the South Texas Project:* NRG South Texas LP;* City Public Service Board of San Antonio; and" City of Austin -Austin Energy.The attached reports provide the following information for each co-owner:* Estimated amount of decommissioning funds required;* Amount accumulated by December 31, 2014;* A schedule of the annual amounts remaining to be collected;

• Assumptions for rates of escalation in decommissioning cost, and for rates used in funding projections;

• Contracts upon which the owners rely pursuant to 10 CFR 50.75(e)(1)(v);

• Modifications to method of providing financial fund assurance; and* Material changes to trust agreements.

This letter contains no NRC commitments.

If there are any questions, please contact either Hung C. Le at (361) 972-7932 or me at (361) 972-8074.George R. Harrison Executive Vice President and Chief Financial Officer HCL Attachments:

1. Financial Assurance for Decommissioning

-NRG South Texas LP A 2. Financial Assurance for Decommissioning

-City Public Service Board of San Antonio f )0-0)3. Financial Assurance for Decommissioning

-City of Austin -Austin Energy STI: 34054098 NOC-AE-1 5003219 Page 2 of 2 cc: (paper copy)(electronic copy)Regional Administrator, Region IV U.S. Nuclear Regulatory Commission 1600 East Lamar Boulevard Arlington, TX 76011-4511 Lisa M. Regner Senior Project Manager U.S. Nuclear Regulatory Commission One White Flint North (MS 8 G9A)11555 Rockville Pike Rockville, MD 20852 Senior Resident Inspector U. S. Nuclear Regulatory Commission P. 0. Box 289, Mail Code: MNl16 Wadsworth, TX 77483 Attention:

Document Control Desk U. S. Nuclear Regulatory Commission Washington, DC 20555-0001 Morgan, Lewis & Bockius LLP Steve Frantz, Esquire U.S. Nuclear Regulatory Commission Lisa M. Regner NRG South Texas LP John Ragan Chris O'Hara Jim von Suskil CPS Energy Kevin Polio Cris Eugster L. D. Blaylock Crain Caton & James, P.C.Peter Nemeth City of Austin -Austin Energy Cheryl Mele John Wester Texas Dept. of State Health Services Richard A. Ratliff Robert Free ATTACHMENT I SOUTH TEXAS PROJECT FINANCIAL ASSURANCE FOR DECOMMISSIONING 2015 UPDATE NRG SOUTH TEXAS LP Attachment 1 NOC-AE-1 5003219 Page 1 of 4 FINANCIAL ASSURANCE FOR DECOMMISSIONING NRG South Texas LP 13.2% Ownership of South Texas Project Unit I Pursuant to 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 two years thereafter, on the status of its decommissioning funding for each reactor or share of reactor it owns. The requested information is provided below.1. Minimum decommissioning fund estimate, pursuant to 10 CFR 50.75(b) and (c)1: 2. Amount accumulated at the end of the calendar year preceding the date of the report for items included in 10 CFR 50.75(b) and (c): 3. Schedule of the annual amounts remaining to be collected for items in 10 CFR 50.75(b) and (c): 4. Assumptions used regarding escalation in decommissioning cost, rates of earnings on decommissioning funds, and rates of other factors used in funding projections:

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

6. Modifications to a licensee's current method providing financial assurance occurring since the last submitted report: 7. Material changes to trust agreements:

Total Required: Amount Accumulated 2:$68,229,416

$56,506,960 Amount Remaining 3:$0 13 Number of Years to Collect: Escalation Rate: Earnings Rate: 2.471%3.30% -7.91%None None None 1. The NRC formulas in section 10 CFR 50.75(c) include only those decommissioning costs incurred by licensees to remove a facility or site safely from service, and reduce residual radioactivity to levels that permit: (1) release of the property for unrestricted use and termination of the license; or (2) release of the property under restricted conditions and termination of the license.2. By Order dated October 10, 2008 in PUCT Docket No. 35772, NRG South Texas LP was granted approval to establish a separate spent fuel management subaccount.

By Order dated July 13, 2009 in PUCT Docket No. 36796, NRG South Texas LP was granted approval to establish a separate subaccount for pre-shutdown disposal of large components.

The amounts allocable to the spent fuel management and pre-shutdown disposal subaccounts are not included in the reported amount. The reported amount includes funds accumulated based upon a site-specific study that includes license termination and other costs.3. Target amounts to be collected were established by the PUCT-approved separate non-bypassable decommissioning charges established in PUCT Tariff Control No. 41970. Actual collections will vary but the charges are intended to produce the targeted annual collection amounts established in PUCT Docket No. 41580. All current collections are being deposited in the large component disposal subaccount.

Attachment 1 NOC-AE-1 5003219 Page 2 of 4 FINANCIAL ASSURANCE FOR DECOMMISSIONING NRG South Texas LP 30.8% Ownership of South Texas Project Unit 1 Pursuant to 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 two years thereafter, on the status of its decommissioning funding for each reactor or share of reactor it owns. The requested information is provided below.1. Minimum decommissioning fund estimate, pursuant to 10 CFR 50.75(b) and (c)1: 2. Amount accumulated at the end of the calendar year preceding the date of the report for items included in 10 CFR 50.75(b) and (c): 3. Schedule of the annual amounts remaining to be collected for items in 10 CFR 50.75(b) and (c): 4. Assumptions used regarding escalation in decommissioning cost, rates of earnings on decommissioning funds, and rates of other factors used in funding projections:

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

6. Modifications to a licensee's current method providing financial assurance occurring since the last submitted report: 7. Material changes to trust agreements:

Total Required: Amount Accumulated 2:$159,201,971

$138,319,017 Amount Remaining 3: Number of Years to Collect: Escalation Rate: Earnings Rate:$0 13 2.471%3.30% -7.91%None None None 1. The NRC formulas in section 10 CFR 50.75(c) include only those decommissioning costs incurred by licensees to remove a facility or site safely from service, and reduce residual radioactivity to levels that permit: (1) release of the property for unrestricted use and termination of the license; or (2) release of the property under restricted conditions and termination of the license.2. By Order dated October 10, 2008 in PUCT Docket No. 35772, NRG South Texas LP was granted approval to establish a separate spent fuel management subaccount.

By Order dated July 13, 2009 in PUCT Docket No. 36796, NRG South Texas LP was granted approval to establish a separate subaccount for pre-shutdown disposal of large components.

The amounts allocable to the spent fuel management and pre-shutdown disposal subaccounts are not included in the reported amount. The reported amount includes funds accumulated based upon a site-specific study that includes license termination and other costs.3. Target amounts to be collected were established by the PUCT-approved separate non-bypassable decommissioning charges established in PUCT Tariff Control No. 41941. Actual collections will vary but the charges are intended to produce the targeted annual collection amounts established in PUCT Docket No. 41580. All current collections are being deposited in the large component disposal subaccount.

Attachment 1 NOC-AE-1 5003219 Page 3 of 4 FINANCIAL ASSURANCE FOR DECOMMISSIONING NRG South Texas LP 13.2% Ownership of South Texas Project Unit 2 Pursuant to 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 two years thereafter, on the status of its decommissioning funding for each reactor or share of reactor it owns. The requested information is provided below.1. Minimum decommissioning fund estimate, pursuant to 10 CFR 50.75(b) and (c)1: 2. Amount accumulated at the end of the calendar year preceding the date of the report for items included in 10 CFR 50.75(b) and (c): 3. Schedule of the annual amounts remaining to be collected for items in 10 CFR 50.75(b) and (c): 4. Assumptions used regarding escalation in decommissioning cost, rates of earnings on decommissioning funds, and rates of other factors used in funding projections:

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

6. Modifications to a licensee's current method providing financial assurance occurring since the last submitted report: 7. Material changes to trust agreements:

Total Required: Amount Accumulated 2:$68,229,416

$68,278,426 Amount Remaining 3:$0 14 Number of Years to Collect: Escalation Rate: Earnings Rate: 2.476%3.30% -7.91%None None None 1. The NRC formulas in section 10 CFR 50.75(c) include only those decommissioning costs incurred by licensees to remove a facility or site safely from service, and reduce residual radioactivity to levels that permit: (1) release of the property for unrestricted use and termination of the license; or (2) release of the property under restricted conditions and termination of the license.2. By Order dated October 10, 2008 in PUCT Docket No. 35772, NRG South Texas LP was granted approval to establish a separate spent fuel management subaccount.

By Order dated July 13, 2009 in PUCT Docket No. 36796, NRG South Texas LP was granted approval to establish a separate subaccount for pre-shutdown disposal of large components.

The amounts allocable to the spent fuel management and pre-shutdown disposal subaccounts are not included in the reported amount. The reported amount includes funds accumulated based upon a site-specific study that includes license termination and other costs.3. Target amounts to be collected were established by the PUCT-approved separate non-bypassable decommissioning charges established in PUCT Tariff Control No. 41970. Actual collections will vary but the charges are intended to produce the targeted annual collection amounts established in PUCT Docket No. 41580. All current collections are being deposited in the large component disposal subaccount.

Attachment 1 NOC-AE-1 5003219 Page 4 of 4 FINANCIAL ASSURANCE FOR DECOMMISSIONING NRG South Texas LP 30.8% Ownership of South Texas Project Unit 2 Pursuant to 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 two years thereafter, on the status of its decommissioning funding for each reactor or share of reactor it owns. The requested information is provided below.1. Minimum decommissioning fund estimate, pursuant to 10 CFR 50.75(b) and (c)': 2. Amount accumulated at the end of the calendar year preceding the date of the report for items included in 10 CFR 50.75(b) and (c): 3. Schedule of the annual amounts remaining to be collected for items in 10 CFR 50.75(b) and (c): 4. Assumptions used regarding escalation in decommissioning cost, rates of earnings on decommissioning funds, and rates of other factors used in funding projections:

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

6. Modifications to a licensee's current method providing financial assurance occurring since the last submitted report: 7. Material changes to trust agreements:

Total Required: Amount Accumulated 2:$159,201,971

$174,158,803 Amount Remaining 3:$0 14 Number of Years to Collect: Escalation Rate: Earnings Rate: 2.476%3.30% -7.91%None None None 1. The NRC formulas in section 10 CFR 50.75(c) include only those decommissioning costs incurred by licensees to remove a facility or site safely from service, and reduce residual radioactivity to levels that permit: (1) release of the property for unrestricted use and termination of the license; or (2) release of the property under restricted conditions and termination of the license.2. By Order dated October 10, 2008 in PUCT Docket No. 35772, NRG South Texas LP was granted approval to establish a separate spent fuel management subaccount.

By Order dated July 13, 2009 in PUCT Docket No. 36796, NRG South Texas LP was granted approval to establish a separate subaccount for pre-shutdown disposal of large components.

The amounts allocable to the spent fuel management and pre-shutdown disposal subaccounts are not included in the reported amount. The reported amount includes funds accumulated based upon a site-specific study that includes license termination and other costs.3. Target amounts to be collected were established by the PUCT-approved separate non-bypassable decommissioning charges established in PUCT Tariff Control No. 41941. Actual collections will vary but the charges are intended to produce the targeted annual collection amounts established in PUCT Docket No. 41580. All current collections are being deposited in the large component disposal subaccount.

ATTACHMENT 2 SOUTH TEXAS PROJECT FINANCIAL ASSURANCE FOR DECOMMISSIONING 2015 UPDATE CITY PUBLIC SERVICE BOARD OF SAN ANTONIO Attachment 2 NOC-AE-1 5003219 Page 1 of 4 FINANCIAL ASSURANCE FOR DECOMMISSIONING City Public Service (CPS) Board of San Antonio 12% Ownership of South Texas Project Unit 1 Pursuant to 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 two years thereafter, on the status of its decommissioning funding for each reactor or share of reactor it owns. The requested information is provided below.1. Minimum decommissioning fund estimate, pursuant to 10 CFR 50.75(b) and (c)1: 2. Amount accumulated at the end of the calendar year preceding the date of the report for items included in 10 CFR 50.75(b) and (c): 3. Schedule of the annual amounts remaining to be collected for items in 10 CFR 50.75(b) and (c): 4. Assumptions used regarding escalation in decommissioning cost, rates of earnings on decommissioning funds, and rates of other factors used in funding projections:

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

6. Modifications to a licensee's current method providing financial assurance occurring since the last submitted report: 7. Material changes to trust agreements:

Total Required:$62,027,313

$39,867,468 Amount Accumulated 2: Amount Remaining 3:$0 13 Number of Years to Collect: Escalation Rate: Earnings Rate: 2.471%4.35%None None No changes since 2013 report was submitted.

1. The NRC formulas in 10 CFR 50.75(c) include only those decommissioning costs incurred by licensees to remove a facility or site safely from service, and reduce residual radioactivity to levels that permit: (1) release of the property for unrestricted use and termination of the license; or (2) release of the property under restricted conditions and termination of the license. The cost of dismantling or demolishing non-radiological systems and structures is not included in NRC decommissioning cost estimates.

The costs of managing and storing spent fuel on site until transfer to the Department of Energy are not included in the cost formulas.2. By Order dated November 20, 2008 in PUCT Docket No. 35786, CPS Energy was granted approval to establish separate spent fuel management and pre-shutdown activities subaccounts.

The amounts allocable to these subaccounts are not included in the reported amount. The reported amount includes funds accumulated based upon a site-specific study that includes license termination and other costs.3. CPS Energy estimates that the Trust is currently fully funded, based on the 2012 decommissioning cost study and updated escalation rates. Additional contributions ended December 31, 2008. If future estimates indicate that further funding may be required, CPS Energy would be able to apply to the PUCT to seek further funding for NRC license termination costs through cost-of-service recovery authorized by Texas law.

Attachment 2 NOC-AE-1 5003219 Page 2 of 4 FINANCIAL ASSURANCE FOR DECOMMISSIONING City Public Service (CPS) Board of San Antonio 28% Ownership of South Texas Project Unit 1 Pursuant to 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 two years thereafter, on the status of its decommissioning funding for each reactor or share of reactor it owns. The requested information is provided below.1. Minimum decommissioning fund estimate, pursuant to 10 CFR 50.75(b) and (c)1: 2. Amount accumulated at the end of the calendar year preceding the date of the report for items included in 10 CFR 50.75(b) and (c): 3. Schedule of the annual amounts remaining to be collected for items in 10 CFR 50.75(b) and (c): 4. Assumptions used regarding escalation in decommissioning cost, rates of earnings on decommissioning funds, and rates of other factors used in funding projections:

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

6. Modifications to a licensee's current method providing financial assurance occurring since the last submitted report: 7. Material changes to trust agreements:

Total Required: Amount Accumulated 2:$144,730,396

$110,081,798 Amount Remaining 3: Number of Years to Collect: Escalation Rate: Earnings Rate:$0 13 2.471%5.41%None None No changes since 2013 report was submitted.

1. The NRC formulas in 10 CFR 50.75(c) include only those decommissioning costs incurred by licensees to remove a facility or site safely from service, and reduce residual radioactivity to levels that permit: (1) release of the property for unrestricted use and termination of the license; or (2) release of the property under restricted conditions and termination of the license. The cost of dismantling or demolishing non-radiological systems and structures is not included in NRC decommissioning cost estimates.

The costs of managing and storing spent fuel on site until transfer to the Department of Energy are not included in the cost formulas.2. Consistent with the approach taken for its 12% interest in the Order dated November 20, 2008, in PUCT Docket No.35786, CPS Energy has established separate spent fuel management and pre-shutdown activity subaccounts.

The amounts allocable to these subaccounts are not included in the reported amount. The reported amount includes funds accumulated based upon a site-specific study that includes license termination and other costs.3. CPS Energy estimates that the Trust is currently fully funded, based on the 2012 decommissioning cost study and updated escalation rates. Additional contributions ended January 31, 2008. If future estimates indicate that further funding may be required, CPS Energy would be able to exercise its rate setting authority to collect and accumulate further funds for NRC license termination costs.

Attachment 2 NOC-AE-1 5003219 Page 3 of 4 FINANCIAL ASSURANCE FOR DECOMMISSIONING City Public Service (CPS) Board of San Antonio 12% Ownership of South Texas Project Unit 2 Pursuant to 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 two years thereafter, on the status of its decommissioning funding for each reactor or share of reactor it owns. The requested information is provided below.1. Minimum decommissioning fund estimate, pursuant to 10 CFR 50.75(b) and (c)1: 2. Amount accumulated at the end of the calendar year preceding the date of the report for items included in 10 CFR 50.75(b) and (c): 3. Schedule of the annual amounts remaining to be collected for items in 10 CFR 50.75(b) and (c): 4. Assumptions used regarding escalation in decommissioning cost, rates of earnings on decommissioning funds, and rates of other factors used in funding projections:

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

6. Modifications to a licensee's current method providing financial assurance occurring since the last submitted report: 7. Material changes to trust agreements:

Total Required:$62,027,313

$53,467,192 Amount Accumulated 2: Amount Remaining 3:$0 14 Number of Years to Collect: Escalation Rate: Earnings Rate: 2.476%4.35%None None No changes since 2013 report was submitted.

1. The NRC formulas in 10 CFR 50.75(c) include only those decommissioning costs incurred by licensees to remove a facility or site safely from service, and reduce residual radioactivity to levels that permit: (1) release of the property for unrestricted use and termination of the license; or (2) release of the property under restricted conditions and termination of the license. The cost of dismantling or demolishing non-radiological systems and structures is not included in NRC decommissioning cost estimates.

The costs of managing and storing spent fuel on site until transfer to the Department of Energy are not included in the cost formulas.2. By Order dated November 20, 2008 in PUCT Docket No. 35786, CPS Energy was granted approval to establish separate spent fuel management and pre-shutdown activities subaccounts.

The amounts allocable to these subaccounts are not included in the reported amount. The reported amount includes funds accumulated based upon a site-specific study that includes license termination and other costs.3. CPS Energy estimates that the Trust is currently fully funded, based on the 2012 decommissioning cost study and updated escalation rates. Additional contributions ended December 31, 2008. If future estimates indicate that further funding may be required, CPS Energy would be able to apply to the PUCT to seek further funding for NRC license termination costs through cost-of-service recovery authorized by Texas law.

Attachment 2 NOC-AE-1 5003219 Page 4 of 4 FINANCIAL ASSURANCE FOR DECOMMISSIONING City Public Service (CPS) Board of San Antonio 28% Ownership of South Texas Project Unit 2 Pursuant to 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 two years thereafter, on the status of its decommissioning funding for each reactor or share of reactor it owns. The requested information is provided below.1. Minimum decommissioning fund estimate, pursuant to 10 CFR 50.75(b) and (c)': 2. Amount accumulated at the end of the calendar year preceding the date of the report for items included in 10 CFR 50.75(b) and (c): 3. Schedule of the annual amounts remaining to be collected for items in 10 CFR 50.75(b) and (c): 4. Assumptions used regarding escalation in decommissioning cost, rates of earnings on decommissioning funds, and rates of other factors used in funding projections:

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

6. Modifications to a licensee's current method providing financial assurance occurring since the last submitted report: 7. .Material changes to trust agreements:

Total Required: Amount Accumulated 2:$144,730,396

$131,558,684 Amount Remaining 3:$0 14 Number of Years to Collect: Escalation Rate: Earnings Rate: 2.476%5.41%None None No changes since 2013 report was submitted.

1. The NRC formulas in 10 CFR 50.75(c) include only those decommissioning costs incurred by licensees to remove a facility or site safely from service, and reduce residual radioactivity to levels that permit: (1) release of the property for unrestricted use and termination of the license; or (2) release of the property under restricted conditions and termination of the license. The cost of dismantling or demolishing non-radiological systems and structures is not included in NRC decommissioning cost estimates.

The costs of managing and storing spent fuel on site until transfer to the Department of Energy are not included in the cost formulas.2. Consistent with the approach taken for its 12% interest in the Order dated November 20, 2008, in PUCT Docket No.35786, CPS Energy has established separate spent fuel management and pre-shutdown activity subaccounts.

The amounts allocable to these subaccounts are not included in the reported amount. The reported amount includes funds accumulated based upon a site-specific study that includes license termination and other costs.3. CPS Energy estimates that the Trust is currently fully funded, based on the 2012 decommissioning cost study and updated escalation rates. Additional contributions ended January 31, 2008. If future estimates indicate that further funding may be required, CPS Energy would be able to exercise its rate setting authority to collect and accumulate further funds for NRC license termination costs.

ATTACHMENT 3 SOUTH TEXAS PROJECT FINANCIAL ASSURANCE FOR DECOMMISSIONING 2015 UPDATE CITY OF AUSTIN -AUSTIN ENERGY Attachment 3 NOC-AE-1 5003219 Page 1 of 2 FINANCIAL ASSURANCE FOR DECOMMISSIONING City of Austin -Austin Energy 16% Ownership of South Texas Project Unit I Pursuant to 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 two years thereafter, on the status of its decommissioning funding for each reactor or share of reactor it owns. The requested information is provided below.1. Minimum decommissioning fund estimate, pursuant to 10 CFR 50.75(b) and (c)1: 2. Amount accumulated at the end of the calendar year preceding the date of the report for items included in 10 CFR 50.75(b) and (c)2: 3. Schedule of the annual amounts remaining to be collected for items in 10 CFR 50.75(b) and (c): 4. Assumptions used regarding escalation in decommissioning cost, rates of earnings on decommissioning funds, and rates of other factors used in funding projections:

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

6. Modifications to a licensee's current method providing financial assurance occurring since the last submitted report: 7. Material changes to trust agreements:

Total Required: Amount Accumulated:

Amount Remaining:

Number of Years to Collect:$82,615,898

$61,470,759

$23,328,763 13 Escalation Rate: Earnings Rate: 4.918%5.073%None None None 1. The NRC formulas in 10 CFR 50.75(c) include only those decommissioning costs incurred by licensees to remove a facility or site safely from service, and reduce residual radioactivity to levels that permit: (1) release of the property for unrestricted use and termination of the license; or (2) release of the property under restricted conditions and termination of the license. The cost of dismantling or demolishing non-radiological systems and structures is not included in NRC decommissioning cost estimates.

The costs of managing and storing spent fuel on site until transfer to Department of Energy are not included in the cost formulas.2. On October 1, 2008, an accounting division of the Decommissioning Trust balance was recorded to reflect the division of costs as referenced in footnote 1.

Attachment 3 NOC-AE-1 5003219 Page 2 of 2 FINANCIAL ASSURANCE FOR DECOMMISSIONING City of Austin -Austin Energy 16% Ownership of South Texas Project Unit 2 Pursuant to 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 two years thereafter, on the status of its decommissioning funding for each reactor or share of reactor it owns. The requested information is provided below.1. Minimum decommissioning fund estimate, pursuant to 10 CFR 50.75(b) and (c)1: 2. Amount accumulated at the end of the calendar year preceding the date of the report for items included in 10 CFR 50.75(b) and (c)2: 3. Schedule of the annual amounts remaining to be collected for items in 10 CFR 50.75(b) and (c): 4. Assumptions used regarding escalation in decommissioning cost, rates of earnings on decommissioning funds, and rates of other factors used in funding projections:

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

6. Modifications to a licensee's current method providing financial assurance occurring since the last submitted report: 7. Material changes to trust agreements:

Total Required: Amount Accumulated:

Amount Remaining:

Number of Years to Collect:$82,615,898

$68,956,723

$19,957,350 14 Escalation Rate: Earnings Rate: 4.918%5.073%None None None 1. The NRC formulas in 10 CFR 50.75(c) include only those decommissioning costs incurred by licensees to remove a facility or site safely from service, and reduce residual radioactivity to levels that permit: (1) release of the property for unrestricted use and termination of the license; or (2) release of the property under restricted conditions and termination of the license. The cost of dismantling or demolishing non-radiological systems and structures is not included in NRC decommissioning cost estimates.

The costs of managing and storing spent fuel on site until transfer to the Department of Energy are not included in the cost formulas.2. On October 1, 2008, an accounting division of the Decommissioning Trust balance was recorded to reflect the division of costs as referenced in footnote 1.