LR-N15-0047, Submits NRC Decommissioning Funding Status Reports

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Submits NRC Decommissioning Funding Status Reports
ML15090A640
Person / Time
Site: Peach Bottom, Salem, Hope Creek  PSEG icon.png
Issue date: 03/31/2015
From: Duke P
Public Service Enterprise Group
To:
Document Control Desk, Office of Nuclear Reactor Regulation
References
LR-N15-0047
Download: ML15090A640 (5)


Text

PSEG Nuclear LLC P.O. Box 236, Hancock's Bridge, NJ 08038-0236 10 CFR 50.75 LR-N15-0047 March 31, 2015 U.S. Nuclear Regulatory Commission ATTN: Document Control Desk Washington, DC 20555-0001 Salem Generating Station, Units 1 and 2 Renewed Facility Operating License Nos. DPR-70 and DPR-75 NRC Docket Nos. 50-272 and 50-311 Peach Bottom Atomic Power Station, Units 2 and 3 Renewed Facility Operating License Nos. DPR-44 and DPR-56 NRC Docket Nos. 50-277 and 50-278 Hope Creek Generating Station Renewed Facility Operating License No. NPF-57 NRC Docket No. 50-354

Subject:

NRC Decommissioning Funding Status Report In accordance with 10 CFR 50.75(f)(1), PSEG Nuclear LLC (PSEG) hereby submits the status report of the decommissioning funds for the subject facilities.

1. The amount of decommissioning funds estimated to be required pursuant to 10 CFR 50.75{b) and (c).

NRC Minimum Decommissioning Funding Requirements (PSEG Nuclear Share)

Hope Creek $ 883,258,660 Salem Unit 1 $ 331,955,611 Salem Unit 2 $ 339,515,906 Peach Bottom Unit 2 $ 369,882,255 Peach Bottom Unit 3 $ 388,094,725 Additional information is provided in Attachment 1.

March 31, 2015 10 CFR 50.75 Page 2 LR-N15-0047

2. The amount of decommissioning funds accumulated to the end of the calendar year preceding the date of the report (i.e.; December 31, 2014}.

The amount accumulated in both Qualified and Non-Qualified Trusts on December 31, 2014, for each respective Unit, is disclosed in the following table.

Decommissioning Fund Balance: 12/31/2014 (PSEG Nuclear Share)

Hope Creek $ 519,995,720 Salem Unit 1 $ 356,575,125 Salem Unit 2 $ 315,278,467 Peach Bottom Unit 2 $ 297J67,350 Peach Bottom Unit 3 $ 298,542,283 Pursuant to the PSEG Nuclear LLC Master Trust Agreement executed in August of 2000, Article 2.02 stipulates that the trust fund assets shall be limited to expenses related to decommissioning of the plants (either Hope Creek, Salem Unit 1 and 2, or Peach Bottom Unit 2 and 3) as defined by the NRC in its regulations and issuances, and as provided in the units' licenses and any amendments thereto. Upon completion of the decommissioning, the assets may then be used for any purpose authorized by law.

Therefore, the fund must be used exclusively for NRC decommissioning needs before funding non-radiological decommissioning activities.

3. A schedule of the annual amounts remaining to be collected.

None required. Projected Value of External Fund at End Of License (EOL) exceeds decommissioning funding requirements. See Attachment 1.

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

For the purposes of determining if the NRC's minimum requirements are met, PSEG has calculated that the current fund balances and annual funding levels, together with earnings at a 2% annual rate of return, as permitted by 10 CFR 50.75(e)(1)(iiL satisfy the NRC's minimum funding assurance requirements.

Values reported for Minimum Decommissioning Funding Requirements (item 1, above) are derived from 2012 site specific estimates, inflated at 3% per year for each of years 2013 and 2014.

March 31, 2015 10 CFR 50.75 Page 3 LR-N15-0047

5. Any contracts upon which the licensee is relying pursuant to paragraph (e}(l}{v) of this section (i.e.; 10 CFR 50. 75}.

PSEG is not relying upon contracts in this regard.

6. Any modifications occurring to a licensee's current method of providing financial assurance since the last submitted report.

PSEG has made no modification to the method of providing financial assurance since the last report.

7. Any material changes to trust agreements.

None.

There are no commitments contained in this letter.

If you have any questions or require additional information, please do not hesitate to contact Mr. Gary Wohler at 856-339-5020.

Sincerely, Paul R. Duke, Jr.

Licensing Manager - NRC Funding Requirements for the Period up to December 31, 2014 cc: Mr. D. Dorman, Administrator, Region I, NRC Ms. C. Sanders-Parker, Project Manager, NRC NRC Senior Resident Inspector, Salem NRC Senior Resident Inspector, Hope Creek Mr. P. Mulligan, Manager IV, NJBNE Mr. L. Marabella, Corporate Commitment Tracking Coordinator Mr. T. Cachaza, Salem Commitment Tracking Coordinator Mr. T. MacEwan, Hope Creek Commitment Tracking Coordinator

March 31, 2015 10 CFR 50.75 Page 5 LR-N15-0047 Attachment 1 Calculation of NRC Funding Requirements For the Period up to 12/31/2014

Calculation of NRC Funding Requirements for the Period up to 12/31/2014 LR-N15-0047 Decommissioning Decommissioning Projected Value Expiration of Years Funding Requirements Funding Requirements Fair Market Value ofExternal Fund Projected Operating License Remaining lAW 10CFR50.75(c) Site SpecificEstimate ofExternal Fund atEOL Surplus I (Shortfall)

Station and Unit (EOL) toEOL (note 1) (note 1, 2) as of Dec. 31, 2014 (note 3) atEOL Hope Creek Unit No. 1 April 11, 2046 31.28 $693,640,091 $883,258,660 $519,995,720 $966,026,688 $82,768,028 Salem Unit No. 1 August 13, 2036 21.62 $305,823,249 $331,955,611 $356,575,125 $547,104,336 $215,148,725 Salem Unit No. 2 April 18, 2040 25.30 $305,823,249 $339,515,906 $315,278,467 $520,306,475 $180,790,569 Peach Bottom Unit No. 2 August 8, 2033 18.60 $346,820,046 $369,882,255 $297,767,350 $430,399,797 $60,517,542 Peach Bottom Unit No. 3 July 2, 2034 19.50 $346,820,046 $388,094,725 $298,542,283 $439,262,284 $51,167,559 Amounts represent PSEG Nuclear's share of funding in year 2014 dollars. Per 50.75(f)(1) the higher of the formula amount 50.75(c) or site specific estimate is used note 1:

as the NRC Minimum Decommissioning Requirement.

note 2: Values originate in site-specific estimates from 2012, inflated at 3% I year through 2014.

note 3: Projected value of fund escalated at 2% annual real rate of return per 10CFR50.75(e)(ii) until license expiration.

Calculations as of: December 31, 2014