ML090910406

Decommissioning Report of Financial Assurance

ML090910406
Person / Time
Site:	Susquehanna
Issue date:	03/25/2009
From:	Kammeier K Allegheny Electric Cooperative
To:	Document Control Desk, Office of Nuclear Reactor Regulation
References
Download: ML090910406 (13)

Text

ELECTRIC COOPERATIVE, INC.A Touchstone Energyo Cooperative 212 LOCUST ST.

• p.O. BOX 1266

• HARRISBURG, PA 17108-1266 e PHONE 717/233-5704

° FAX 717/234-1309 March 25, 2009 U.S. Nuclear Regulatory Commission Attn: Document Control Desk Mail Station OPl-17 Washington, DC 20555 Sumbitted pursuant to 10 CFR 2.390 SUSQUEHANNA STEAM ELECTRIC STATION DECOMMISSIONING REPORT OF FINANCIAL ASSURANCE Docket Nos. 50-387 and 50-388 In accordance with 10 CFR 50.75(f)(1), we are submitting Allegheny Electric Cooperative, Inc.'s decommissioning report of financial assurance for our 10 percent interest in Susquehanna Units I and 2.If you have any questions regarding the report, please contact me at (717) 233-5704.Sincerely, Kenneth W. Kammeier Vice President, Finance & Accounting

Attachment:

Decommissioning Report cc: NRC Region I Mr.F.W.Jaxheimer, NRC Sr. Resident Inspector Mr. B. K. Vaidya, NRC Project Manager AOD (

ATTACHMENT I

Attachment 1 Page 1 of 1 NRC Decommissioning Funding Status Report December 31, 2008 Allegheny Electric Cooperative, Inc.Susquehanna Steam Electric Station Allegheny Electric Cooperative (AEC) hereby submits this Decommissioning Report in compliance with 10 CFR 50.75(f)(1) for its 10 percent share of Susquehanna Units 1 and 2.Information is submitted to provide Financial Assurance Unit 1 Unit 2 1. The minimum amount of decommissioning funds estimated to be required pursuant to 10 CFR 50.75(b) and (c).At December 31, 2008 $57,226,500

$57,226,500 AEC's calculation of the NRC minimum formula is reflected in Exhibit 1.2. The 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).Market Value at December 31, 2008 $16,694,204

$16,694,204

3. See Exhibit 2 for a schedule of the annual amounts remaining to be collected.

4. The assumptions used regarding escalation in decommissioning cost, rates of earnings on decommissioning funds, and rates of other factors used in funding projections.

Estimated Inflation rate for decommissioning costs 4% 4%Estimated Earnings rates on decommissioning funds 7.5% 7.5%Rates of other factors used in funding projections (None) (None)AEC sets its own rates and believes the above assumptions are reasonable.

5. Any power sale contracts upon which licensee is relying to (see below) (see below)provide financial assurance.

AEC is the wholesale power supplier for the 14 rural electric cooperatives in Pennsylvania and New Jersey. AEC has all requirements contracts with its 14 member distribution cooperatives, which is the source for funding the Trust Fund.6. Modifications to licensee's method of providing financial None None assurance since previous report.7. Material changes to trust agreement.

None None Exhibit 1 Page 1 of 3 Calculation of Escalation Factors Used in Computation of Minimum Financial Assurance Amount for Decommissioning Susquehanna Steam Electric Station Units I and 2 Boiling Water Reactor (BWR)Escalation Factor Formula -0.65(L) + 0.13(E) + 0.22(B)Escalation

= (0.65 x 2.365) + (0.13 x 1.829) + (0.22 x 11.198)Escalation

= (1.537 + 0.238 + 2.464) = 4.239 (L) -Labor -(Bureau of Labor Statistics, CIU20100000002101, 2008, Qtr4, Total Compensation, Private Industry, Northeast)

Northeast region -December 2008 Index Number 109.5 December 2005 Index Number 100.0 December 2005 base 2.16 L = 109.5 x 2.16 = 2.365 100.0 (E) -Energy (Producer Price Index Commodities, Series ID: wpu-543 and wpu-0573)E = (0.54P + 0.46F)E = (0.54 x 1.669) + (0.46 x 2.018)E = 0.901 + 0.928 = 1.829 P -Industrial Electric Power (wpu-0543)

December 2008 Index Number (preliminary) 190.6 January 1986 Index Number 114.2 (1)P= 190.6 = 1.669 114.2 F -Light Fuel Oils -(wpu-0573)

December 2008 Index Number (preliminary) 165.5 January 1986 Index Number 82.0 F= 165.5 = 2.018 82.0 Exhibit 1 Page 2 of 3 (B) Waste Burial NUREG -1307, Rev.13, Table 2.1 -Values of Bx as a Function of LLW Burial Site, Waste Vendor, and Year: Bx Values for Generic LLW Disposal Site Direct Disposal with Vendors (BWR): 11.198 (1) Represents the national base value of P at January 1986. The base value of P is no longer determined on a regional basis.

Exhibit 1 Page 3 of 3 Computation of Minimum Financial Assurance Amount for Decommissioning Susquehanna Steam Electric Station Units 1 and 2 Unit 1 Unit 2 Base amount for BWR greater than 3,400 MWt = $135 million $135,000,000

$135,000,000 The Power Level of Unit 1 and Unit 2 is = 3,489 MWt Ownership percentage Base amount per unit Escalation Factor Escalated Amount per Unit Total Escalated Amount (Unit 1 + Unit 2)10%$13,500,000 4.239$57,226,500 10%$13,500,000 4.239$57,226,500

$114,453,000 Exhibit .2 Page 1 of 1 AEC Nuclear Decommissioning Trust Expected Contributions 2009 Filing Year 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2009-2023 Unit 1$1,143,514

$1,217,842

$1,297,002

$1,381,307

$1,471,092

$1,566,713

$1,668,549

$1,777,005

$1,892,510

$2,015,523

$2,146,532

$2,286,057

$2,434,650

$2,592,903

$24,891,197 Unit 2$1,143,514

$1,217,842

$1,297,002

$1,381,307

$1,471,092

$1,566,713

$1,668,549

$1,777,005

$1,892,510

$2,015,523

$2,146,532

$2,286,057

$2,434,650

$2,592,903

$2,761,441

$27,652,639 Total$2,287,027

$2,435,684

$2,594,003

$2,762,614

$2,942,183

$3,133,425

$3,337,098

$3,554,009

$3,785,020

$4,031,046

$4,293,064

$4,572,113

$4,869,301

$5,185,805

$2,761,441

$52,543,836 ATTACHMENT 2

AFFIDAVIT OF KENNETH W. KAMMEIER I, Kenneth W. Kammeier, Vice President

-Finance & Accounting of Allegheny Electric Cooperative, Inc. ("Allegheny"), do hereby affirm and state: 1. I am an officer of Allegheny authorized to execute this affidavit on its behalf. I am further authorized to review information submitted to the Nuclear Regulatory Commission and apply for the withholding of information from disclosure.

2. Allegheny is providing information which constitutes proprietary financial information that should be held in confidence by the NRC pursuarnt to the provisions of 10 C.F.R.§§ 2.390(a)(4) and 9.17(a)(4), because: i) This information has been held in confidence by Allegheny.

ii) This information is of a type that is held in confidence by Allegheny, and there is a rational basis for doing so because the information contains sensitive financial information.

iii) This information is being transmitted to the NRC in confidence.

iv) This information is not available in public sources and could not be gathered readily from other publicly available information.

v) Public disclosure of this information would cause substantial harm to the competitive position of Allegheny by disclosing Allegheny's internal cost projections to other parties whose commercial interests may be adverse to those of Allegheny.

3. Accordingly, Allegheny requests that the information in Attachment 2 be withheld from public disclosure pursuant to the provisions of 10 C.F.R. §§ 2.390(a)(4) and 9.17(a)(4).

A~hey Elctri CooeratveInc.

Kenneth W. Kammeier Vice President, Finance & Accounting Subscribed and sworn before me, COMMONWEALTH OF PENNSYLVANIA a Notary Public in and for the COMMONWEALTH__FPENNSYLVANIA Commonwealth of Pennsylvania NOTARIAL SEAL I thisj,!'day of Mm(WYVx , 2009. LINDA BURDICK RUSSELL, Notary Public Ct , of Hardsbu,, Dauphin Coun 1 M ssion pires Feb. 8, 203 Unit 1 Growth 2002 2003 License Termination 502,908,000 Ownership

%/ 10%/AEC Cost 50,290,800 52,302,432 Inflation 4%2004 2005 2006 2007 2008 54,394,529 56,570,310 58,833,123 61,186,448 63,633,906 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 YEAR 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 2036 2037 2038 2039 2040 2041 2042 2043 2044 2045 Assets Beginning of Year 16,694,204 18,442,026 20,326,651 22,357,783 24,545,785 26,901,724 29,437,414 32,165,472 35,099,366 38,253,473 41,643,139 45,284,746 49,195,775 53,394,883 55,968,086 51,259,589 51,739,176 52,616,637 53,524,809 54,464,768 55,435,050 56,441,866 57,750,555 59,414,167 61,135,783 62,917,654 64,761,891 66,670,677 68,646,270 70,691,008 72,807,313 74,997,688 77,264,726 79,611,111 82,039,619 84,553,125 87,154,604 SAFATOR &Decommissioning Contributions Disbursements 1,143,514 1,217,842 1,297,002 1,381,307 1,471,092 1,566,713 1,668,549 1,777,005 1,892,510 2,015,523 2,146,532 2,286,057 2,434,650 2,592,903 (1,900,636 0 (6,552,708:

0 (1,291,891 0 (917,356 0 (917,356 0 (917,356 0 (919,887 0 (917,356 0 (655,309 0 (351,506 0 (351,726 0 (351,726 0 (351,726 0 (351,726 0 (351,726 0 (351,726 0 (351,726 0 (351,726 0 (351,726 0 (351,726 0 (351,726 0 (351,726 0 (351,726 0 (351,726)))))))))))))))))3.50%Real Earnings 604,309 666,783 734,130 806,695 884,847 968,978 1,059,509 1,156,889 1,261,597 1,374,143 1,495,074 1,624,972 1,764,458 1,880,936 1,844,211 1,771,478 1,794,817 1,825,529 1,857,315 1,890,169 1,924,173 1,963,997 2,015,118 2,073,341 2,133,597 2,195,963 2,260,511 2,327,318 2,396,464 2,468,030 2,542,101 2,618,764 2,698,110 2,780,234 2,865,231 2,953,204 3,044,256 Assets End of Year 18,442,026 20,326,651 22,357,783 24,545,785 26,901,724 29,437,414 32,165,472 35,099,366 38,253,473 41,643,139 45,284,746 49,195,775 53,394,883 55,968,086 51,259,589 51,739,176 52,616,637 53,524,809 54,464,768 55,435,050 56,441,866 57,750,555 59,414,167 61,135,783 62,917,654 64,761,891 66,670,677 68,646,270 70,691,008 72,807,313 74,997,688 77,264,726 79,611,111 82,039,619 84,553,125 87,154,604 89,847,134 Unit 1 Growth 25 2046 89,847,134 26 2047 92,633,903 27 2048 95,518,209 28 2049 98,503,466 29 2050 101,593,206 30 2051 104,791,088 31 2052 108,100,895 32 2053 111,526,546 33 2054 115,072,094 34 2055 118,7.41,736 35 2056 122,539,817 36 2057 126,470,829 37 2058 130,539,428 38 2059 134,750,427 39 2060 139,108,811 40 2061 143,619,739 41 2062 148,288,549 42 2063 153,120,767 43 2064 158,122,113 44 2065 163,298,507 45 2066 168,656,074 46 2067 174,201,155 47 2068 179,940,3.15 48 2069 185,880,345 49 2070 192,028,277 50 2071 198,391,386 51 2072 204,977,203 52 2073 211,793,525 53 2074 218,848,417 54 2075 226,150,455 55 2076 233,708,064 56 2077 239,425,704 57 2078 241,228,732 58 2079 234,900,814 59 2080 237,949,577 60 2081 243,054,908 (351,726)(351,726)(351,726)(351,726)(351,726)(351,726)(351,726)(351,726)(351,726)(351,726)(351,726)(351,726)(351,726)(351,726)(351,726)(351,726)(351,726)(351,726)(351,726)(351,726)(351,726)(351,726)(351,726)(351,726)(351,726)(351,726)(351,726)(351,726)(351,506)(351,506)(2,419,796)

(6,463,756)

(14,516,879)

(5,083,799)

(3,167,473)

(1,165,359) 3,138,495 3,236,031 3,336,982 3,441,466 3,549,607 3,661,533 3,777,376 3,897,274 4,021,368 4,149,806 4,282,738 4,420,324 4,562,725 4,710,110 4,862,653 5,020,536 5,183,944 5,353,072 5,528,119 5,709,293 5,896,807 6,090,885 6,291,756 6,499,657 6,714,834 6,937,543 7,168,047 7,406,618 7,653,543 7,909,115 8,137,436 8,266,784 8,188,960 8,132,562 8,272,804 8,486,528 92,633,903 95,518,209 98,503,466 101,593,206 104,791,088 108,100,895 111,526,546 115,072,094 118,741,736 122,539,817 126,470,829 130,539,428 134,750,427 139,108,811 143,619,739 148,288,549 153,120,767 158,122,113 163,298,507 168,656,074 174,201,155 179,940,315 185,880,345 192,028,277 198,391,386 204,977,203 211,793,525 218,848,417 226,150,455 233,708,064 239,425,704 241,228,732 234,900,814 237,949,577 243,054,908 250,376,077 Summary 16,694,204 24,891,197 Sumary16,94204 24,91,97 (63,633,906) 272,424,582 250,376,077 Unit 2 Growth 2002 2003 License Termination 615,651,000 Ownership

% 10%AEC Cost 61,565,100 64,027,704 Inflation 4%2004 2005 2006 2007 2008 66,588,812 69,252,365 72,022,459 74,903,358 77,899,492 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 YEAR 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 2036 2037 2038 2039 2040 2041 2042 2043 2044 2045 Assets Beginning of Year 16,694,204 18,442,026 20,326,651 22,357,783 24,545,785 26,901,724 29,437,414 32,165,472 35,099,366 38,253,473 41,643,139 45,284,746 49,195,775 53,394,883 57,901,983 62,738,319 61,686,526 58,288,464 59,025,129 59,787,578 60,573,108 61,389,735 62,234,945 63,109,738 64,655,147 66,438,882 68,296,120 70,218,362 72,207,882 74,267,035 76,398,258 78,604,075 80,887,094 83,250,020 85,695,648 88,226,873 90,846,691 SAFATOR &Decommissioning Contributions Disbursements 1,143,514 1,217,842 1,297,002 1,381,307 1,471,092 1,566,713 1,668,549 1,777,005 1,892,510 2,015,523 2,146,532 2,286,057 2,434,650 2,592,903 2,761,441 0 (3,191,778) 0 (5,461,514) 0 (1,281,013) 0 (1,281,013) 0 (1,284,556) 0 (1,281,013) 0 (1,281,013) 0 (1,281,013) 0 (652,021)0 (470,953)0 (460,071)0 (460,071)0 (460,071)0 (460,071)0 (460,071)0 (460,071)0 (460,071)0 (460,071)0 (460,071)0 (460,071)0 (460,071)0 (460,071)3.50%Real Earnings 604,309 666,783 734,130 806,695 884,847 968,978 1,059,509 1,156,889 1,261,597 1,374,143 1,495,074 1,624,972 1,764,458 1,914,197 2,074,895 2,139,985 2,063,452 2,017,679 2,043,462 2,070,086 2,097,641 2,126,223 2,155,805 2,197,430 2,254,688 2,317,310 2,382,313 2,449,591 2,519,225 2,591,295 2,665,888 2,743,091 2,822,997 2,905,699 2,991,296 3,079,889 3,171,583 Assets End of Year 18,442,026 20,326,651 22,357,783 24,545,785 26,901,724 29,437,414 32,165,472 35,099,366 38,253,473 41,643,139 45,284,746 49,195,775 53,394,883 57,901,983 62,738,319 61,686,526 58,288,464 59,025,129 59,787,578 60,573,108 61,389,735 62,234,945 63,109,738 64,655,147 66,438,882 68,296,120 70,218,362 72,207,882 74,267,035 76,398,258 78,604,075 80,887,094 83,250,020 85,695,648 88,226,873 90,846,691 93,558,202 Unit 2 Growth 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49 50 51 52 53 54 55 56 57 58 59 60 2046 2047 2048 2049 2050 2051 2052 2053 2054 2055 2056 2057 2058 2059 2060 2061 2062 2063 2064 2065 2066 2067 2068 2069 2070 2071 2072 2073 2074 2075 2076 2077 2078 2079 2080 2081 2082 2083 93,558,202 96,364,617 99,269,255 102,275,557 105,387,078 108,607,503 111,940,643 115,390,443 118,960,986 122,656,497 126,481,352 130,440,077 134,537,357 138,778,041 143,167,150 147,709,878 152,411,601 157,277,884 162,314,487 167,527,371 172,922,707 178,506,879 184,286,497 190,268,401 196,459,673 202,867,638 209,499,883 216,364,256 223,468,882 230,822,171 238,432,824 246,298,778 254,438,753 261,177,689 265,114,069 258,490,664 259,036,053 260,894,693 (460,071)(460,071)(460,071)(460,071)(460,071)(460,071)(460,071)(460,071)(460,071)(460,071)(460,071)(460,071)(460,071)(460,071)(460,071)(460,071)(460,071)(460,071)(460,071)(460,071)(460,071)(460,071)(460,071)(460,071)(460,071)(460,071)(460,071)(460,071)(460,071)(460,071)(470,953)(472,219)(2,129,159)

.(5,115,322)

(15,628,892)

(8,355,561)

(7,083,658)

(1,854,837) 3,266,486 3,364,710 3,466,373 3,571,593 3,680,496 3,793,211 3,909,871 4,030,614 4,155,583 4,284,926 4,418,796 4,557,351 4,700,756 4,849,180 5,002,799 5,161,794 5,326,355 5,496,675 5,672,956 5,855,407 6,044,243 6,239,690 6,441,976 6,651,343 6,868,037 7,092,316 7,324,445 7,564,698 7,813,360 8,070,725 8,336,907 8,612,193 8,868,096 9,051,701 9,005,487 8,900,951 8,942,298 9,098,855 96,364,617 99,269,255 102,275,557 105,387,078 108,607,503 111,940,643 115,390,443 118,960,986 122,656,497 126,481,352 130,440,077 134,537,357 138,778,041 143,167,150 147,709,878 152,411,601 157,277,884 162,314,487 167,527,371 172,922,707 178,506,879 184,286,497 190,268,401 196,459,673 202,867,638 209,499,883 216,364,256 223,468,882 230,822,171 238,432,824 246,298,778 254,438,753 261,177,689 265,114,069 258,490,664 259,036,053 260,894,693 268,138,710 268,138,710 Summary Sumay16,694,204 27,652,639 (77,899,492) 301,691,359