ML12123A082

Nrc'S Assessment of 2012 Decommissioning Funding Status Report for Crystal River Nuclear Generating Plant, Unit 3

ML12123A082
Person / Time
Site:	Crystal River
Issue date:	05/22/2012
From:	Farideh Saba Plant Licensing Branch II
To:	Franke J Progress Energy Carolinas
Saba, Farideh
References
TAC ME8290
Download: ML12123A082 (9)

Text

UNITED STATES NUCLEAR REGULATORY COMMISSION WASHINGTON, D.C. 20555-0001 May 22,2012 Mr. Jon A. Franke, Vice President Crystal River Nuclear Plant (NA2C)

ATIN: Supervisor, Licensing & Regulatory Programs 15760 W. Power Line Street Crystal River, Florida 34428-6708

SUBJECT:

U.S. NUCLEAR REGULATORY COMMISSION'S ASSESSMENT OF 2012 DECOMMISSIONING FUNDING STATUS REPORT FOR CRYSTAL RIVER UNIT 3 NUCLEAR GENERATING PLANT (TAC NO. ME8290)

Dear Mr. Franke:

By letter dated March 26,2012, the U.S. Nuclear Regulatory Commission (NRC) received Florida Power Corporation's (the licensee) decommissioning funding status (DFS) report (Agencywide Documents Access and Management System (ADAMS) Accession No.

ML121 OOA159) for Crystal River Unit 3 Nuclear Generating Plant (CR-3). On November 29, 2011, the NRC received your preliminary decommissioning cost estimate pursuant to Title 10 of the Code of Federal Regulations (10 CFR), Section 50.75(f)(3) and your spent fuel management plan pursuant to 10 CFR Section 50.54(bb) (ADAMS Accession No. ML113390139).

The 2012 DFS report provided the information required under 10 CFR 50. 75(f)(1), with one exception. The reported amount of decommissioning funds estimated to be required should include, along with the amount specified by the formulas in 10 CFR 50.75(c), the amount of your preliminary decommissioning cost estimate submitted pursuant to 10 CFR 50. 75(f)(3), but which was omitted in your submittal. Therefore, the NRC reviewed your DFS report using the preliminary decommissioning cost estimate amount of approximately $753 million. The NRC staff considered this as the certification amount that must be covered by your financial assurance method.

Based on the reported decommissioning trust balance, together with earnings credits specified under NRC regulations, the NRC determined that the amount of decommissioning financial assurance you provided was equal to or greater than the minimum required amount based on the preliminary decommissioning cost estimate.

This letter confirms the correspondence, described above, regarding DFS reports for operating power reactors as required under 10 CFR 50. 75(f)(1). As of the date of this letter, considering the available information, the NRC has determined that all licensees of CR-3 have satisfied the decommissioning funding assurance requirements of 10 CFR 50.75 for CR-3 on December 31, 2011. The DFS report analysis is enclosed.

J. Franke - 2 If you have any questions regarding this letter, please feel free to contact me at (301) 415-1447.

Sincerely, Farideh E. Saba, Senior Project Manager Plant licensing Branch 11-2 Division of Operating Reactor licensing Office of Nuclear Reactor Regulation Docket No. 50-302

Enclosure:

As Stated cc w/encl: Distribution via listserv

ENCLOSURE CRYSTAL RIVER UNIT 3 GENERATING PLANT DECOMMISSIONING FUNDING STATUS REPORT ANALYSIS

Do'_tl Plant name: Crystal River Nuclear Plant, Unit 3 Docket Number: 50*302 The minimum financial assurance (MFA) estimate pursuant 10 10 CFR 50,75(b) &; (c): 5442.5 miUion Did the licensee identifY the amount of estimated ,adiological funds' (YIN) Y The total amount of doUm: accumulated at the end of the appropriate year: (see below)

Licensee:  % Owned: Cat.""",: Amount in Trust Fund:

Progress Energy Florida. Inc, 9(,78% $559,052,592 City of Alachua 0.07790/, $574,631 Cioy of Bushnell 0,0388% $284,975 City of GainesviUe 1.4079% $10,087,176 City of Kissimmee 0,6754% $5,302,590 Cioy of leesburg 0.8244% $5,925,162 City of New Smyrna Beach 0.5608% $3,996,001 Cioy of Ocala 1.3333% $9,545,206 Orlando Utilities Commission 1.60)5% $[2,849,522 Seminole Electric Cooperative, Inc. L6994% $10,395,834 Total Trust Fund Balance 5618,013.689 Schedule of the annual amounts remaining to be collected: (providedloone) none Assumptions used in determining ral.cs of escalation in decommissioning costs. rates of earnings on decommissioning funds. and Tates of other factors used in funding proj~lions: (see below)

Post-RAI Rote of PUC RAI PUC Rates Rate(s) of Real Rate of Allowed through Occom Allowed through Return on Escalation Rate Verilied Needed Verilied Detemtined Other Factors Return (YIN) Occom (YIN)

Earnings (YIN) (YIN) (YIN) (YIN) variable I ,'wibIe 1 variable' N N Y N N Y Any contracts upon which the licensee is relying? (YIN) N Any modifICations to a licensee's method of providmg decommissioning funding assurance? (YIN) N Any material changes to trust agreements? (YIN) y' If a change has occurred, the reviewer win document OTt this sheet that a change has OC<:UlTed and identitY the reviewer who wiJi evaluate the change: (see below) t Rates provided are variable because the rates are not consistent throughout the Ii<::ensee(s) aneIIor years ofoperation/decommission 2 As of J013120ll, QUe amended and restated the Decommissioning Trust Agreerncnt to transfer trust duties to Wells Fargo frorn Regions Bank Signature: Aaron L. Szabo Spreadsheet created by: ABron Szabo, Shav.ll Harwell Dale: 312712012 F()rmuia, wrified by Clayton Piuiglio

Datasheet 2 Plant name: Crystal River Nuclear Plant, Unit 3 Docket Number: 50-302 Month: Day Year:

Date of Operation: 12 31 2011 Termination of Operations: 12 3 2016

.!lill:!ll 21;09 NRC Minimum: $442,491,002 Site Specific: $753,717,000 Licensee: -/0 Owned: Amount in Trust .Fund:

Progress Energy Florida, Inc. 91.1806% $691,765,985 $559,052,592 City of Alachua 0.0779'10 $587,146 $574,631 0,0388% 5292,442 5284,975 1.4079% $10,611,582 $10,087,176 0,6754% $5,090,605 $5,302,590 City of Leesburg 0.8244% 56,213,643 $5,925.162 City of New Smyrna Beach 0.5608% $4,226,845 $3,996,001 City of Ocala 1.3333% 510,049,309 $9,545,206 Orlando Utilities Commission 1.6015% SIl,070,n8 SI2,849,5n Seminole Electric Cooperative. Inc. 1.6994% 512,808,667 $10,395,834 Total Fund Balanee: 5618,013,689 Step I:

Earnlngs Credit:

Trust fund Balance: Ooes Licen.<;:ce Pass:

5618,013,689 NO Step 2:

AccumulatiOn!

Total Annuit

$0 Does Licensee Pass:

NO Step 3:

Decom Perktd:

Total Enmin~s:

$681,301,295 Does Licensee Pass:

NO Szabo

Datasheet 2 Plant name: Crystal River Nuclear Plant, Unit 3 Docket Number: 50-302 Month: Day Year!

Date of Operation: 12 31 2011 Termination of Operations! 12 3 201(.

If licensee is gfl,lllted greater lhan 2% RRR Step 4:

Earnings Ctcdltt Rcal Rate 0 Years I l.i;;ense~s) Trust Fund Balance: Return per l.eft in Total Eamin1!,s: t Does Licensee Pass: I PEF,OUe $571,902,114 2.00% 4.92 5686,671,169 I NO I Alachua, Bushnell, Gainesville,

$35,715,741 3,97% 4.92 Kissimmee Lcesbur~, Ocala Seminole 1::reeme Cooperative, inc $10,395,834 4.55% 4.92 Step 5:

Accumulation:

Value of Annuitvper vear

$0 Total Annui so Docs J .itemee Pass; NO Step 6:

Decom Period:

Total Earnings:

$686,671,169 Does {,icenscc Pass:

NO Spreadsheel created by: Aaron Szabo, Shawn Harwel1 Formulas verified by: Clayton PitTiglio

SAFSTOR ANALYSIS Name of Unit: Crystal River, Unit 3 Name of Licensee: l\Iultiple (see prt'vious sheets)

Date of Termination of Operations 12 3 2016 End of Operations Balance: $686,671,169 Decommissioning Real Rate of Return: 2.(10%

Expense Per Year Beginning Trust Real Rate End of Year Trust Year Contributions Fund Balance Plant Spent Fuel of Return Fund Balance 2016 $686,671,169 S4,058,000 Nll\ 2.00% $689,946,541 2017 $689,946,541 $53,405,000 N;A 2.00% $649,806,422 2018 $649,806,422 543,41).000 N!i\ 2.00% $618,953,401 2019 $618,953,401 S5,607.000 NrA 2.00% $625,669,399 2020 $625,669,399 S5,622,00O N//\ 2.00% $632,504,567 2021 $632,504,567 55,607.000 N!A 2.00% $639,491,588 2022 $639,491,588 55.607,000 l'i!A 2.00% $646,618,350 2023 $646,618,350 S5,250.000 N/A 2.00% $654,248,217 2024 $654,248,217 S5,479,OOO NU\. 2.00% $661,799,391 2025 $661,799,391 S5,465.000 N/A 2.00% $669,515,729 2026 $669,515,729 55,465.000 N!A 2.00% $677,386,394 2027 $677,386,394 S5,465,OOO N!/\ 2.00% $685,414,471 2028 $685414,471 55,479.000 N/A 2.00% $693,588,971 2029 $693,588,971 55,465,000 N!A 2.00% $701,941,100 2030 $701,941,100 55,465.000 N/A 2.00% $710,460,272 2031 $710,460,272 S5,465,OOO N/A 2.00% $719,149,828 2032 $719,149,828 55,479.000 N!A 2.00% $727,999,034 2033 $727,999,034 S5,465,OOO N/A 2.00% $737,039,365 2034 $737,039,365 55,465,000 N!/\ 2.00% $746,260,502 2035 $746,260,502 S5,465,OOO Nfi\ 2.00% $755,666,062 2036 $755,666,062 S5A 79,000 NiA 2.00% $765,245,594 2037 $765,245,594 S5,465.000 N/A 2.00% $775,030,855 2038 $775,030,855 55,465,000 N!A 2.00% $785,011,823 2039 $785,011,823 55.465.000 N//\ 2.00% $795,192,409 2040 $795,192,409 S5.479,000 Nu\ 2.00% $805,562,467 Signature: Aaron L. Szabo Spreadsheet created by: Aaron Szabo Date: 3/27/2012 Fonnulas verified by: Shawn Harwell

2041 $805,562,467 S5,465.000 Nil\ 2.00% $816,154,067 2042 $816,154,067 S5,465,OOO N!A 2.00% $826,957,498 2043 $826,957,498 55,465,000 N!,\ 2.00% $837,976,998 2044 $837,976,998 S5,479,OOO NiA 2.00% $849,202,748  !

2045 $849,202,748 S5,465,OOO NiA 2.00% $860,667,153 2046 $860,667,153 5>5.465.000 N!A 2.00% $872,360,846 2047 $872,360,846 S5,465.000 N!l\ 2.00% $884,288,413 2048 $884,288,413 S5,479.000 NiA 2.00% $896,440,391 2049 $896,440,391 S5,465,OOO N!A 2.00% $908,849,549 2050 $908,849,549 S5,465,OOO N/A 2.00% $921,506,890 2051 $921,506,890 S5,465,O()0 N!A 2.00% $934,417,378 2052 $934,417,378 55,479.000 N/A 2.00% $947,571,935 2053 $947,571,935 5>5,465,000 NU\ 2.00% $961,003,724 2054 $961,003,724 55,465,000 N/A 2.00% $974,704,148 2055 $974,704,148 S5,465,OOO NiA 2.00% $988,678,581 2056 $988,678,581 55.479,000 N!A 2.00% $1,002,918,363 2057 $1,002,918,363 S5,465.000 NiA 2.00% $1,017,457,080 2058 $1,017,457,080 S5,434,000 N/A 2.00% $1,032,317,882 2059 2060

$1,032,317,882

$1,047,475,899 f- S5,434,OOO S5A48,OOO NiA N/A 2.00%

2.00%

$1,047,475,899

$1,062,922,937 2061 $1,062,922,937 55,434.000 NfA 2.00% $1,078,693,056 2062 $1,078,693,056 S5,434.000 N!A 2.00% $1,094,778,577 2063 $1,094,778,577 S5,434.0()O N/A 2.00% $1,111,185,809 2064 $1,111,185,809 S5,448.000 N/A 2.00% $1,127,907,045 2065 $1,127,907,045 S5,434,000  !'fn 2.00% $1,144,976,846 2066 $1,144,976,846 55,434.000 N/A 2.00% $1,162,388,043 2067 $1,162,388,043 S5,434,000 N!A 2.00% $1,180,147,464 2068 $1,180,147,464 S5,448,OOO NiA 2.00% $1,198,247,933 2069 $1,198,247,933 S5.434,000 NiA 2,00% $1,216,724,552 2070 $1,216,724,552 55,434.000 N!A 2,00% $1,235,570,703 2071 $1,235,570,703 S7,553.000 N/A 2.00% $1,252,653,587 2072 $1,252,653,587 544,672.000 NiA 2.00% $1,232,587,938 2073 $1,232,587,938 $98,766,000 N/A 2.00% $1,157,486,037 2074 $1,157,486,037 S 107,949,000 NiA 2.00% $1,071,607,268 2075 2076 2077

$1,071,607,268

$1,020,108,323

$1,003,225,330

$72.209,000 S36,916.000

$121.000 N!A N!A NiA H OO 00%

2.00%

%

$1,020,108,323

$1,003,225,330

$1,023,167,626 2078 $1,023,167,626 574,000 N/A 2.00% $1,043,556,239 Signature: Aaron L. Szabo Spreadsheet created by: Aaron Szabo Date: 3127/2012 Formulas verified by: Shawn Harwell

J. Franke - 2 If you have any questions regarding this letter, please feel free to contact me at (301) 415-1447.

Sincerely, IRA!

Farideh E. Saba, Senior Project Manager Plant Licensing Branch 11-2 Division of Operating Reactor Licensing Office of Nuclear Reactor Regulation Docket No. 50-302

Enclosure:

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PUBLIC RidsNrrLABTully LPL2-2 RlF RidsNrrPMCrystalRiver RidsAcrsAcnw MailCTR RidsOgcRp RidsNrrDirslfib RidsRgn2MailCenter RidsNrrDorlLpl2-2 ASzabo, NRRlIFIB ADAMS Accesslon N0.: ML12123A082 *Bsy Memo Dae t d OFFICE LPL2-2/PM LPL2-2/LA NRR/DIRS/IFIB* NRR/LPL2*2/BC LPL2-2/PM NAME FSaba BTuily CRegan DBroaddus FSaba TOrffor DATE 05/07112 05/03/12 04111112 05/18/12 05122112 OFFICIAL RECORD COpy