ML20205H274

Forwards Info on Status of Decommissioning Funding for Jm Farley Nuclear Plant,Units 1 & 2,IAW 10CFR50.75(f)(i)

ML20205H274
Person / Time
Site:	Farley
Issue date:	03/18/1999
From:	Hutchins W ALABAMA POWER CO.
To:	Hoyle J NRC OFFICE OF THE SECRETARY (SECY)
References
NUDOCS 9904080124
Download: ML20205H274 (6)

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, William B.Hutchins 111 600 North 18th Street Executive' lice President and Post Office"ox 2641 Chief Financial Officer Birmingham. Alabama 3S291-0269 Tel 2052512905 l

March 18,1999 ALABAMAL POWER A SOUTHERN COMPANY Mr. John C. Hoyle, Secretary U. S. Nuclear Regulatory Commission ATTN: Rulemakings and Adjudication's Staff Washington, D. C. 20555-0001

Dear Mr. Hoyle:

Re: Joseph M. Farley Nuclear Plant Financial Assurance Requirements for Decornmissioning Nuclear Power Reactors (63 FR 50465 dated September 22,1998)

Docket Nos. 50-348 and 50-364 1 As provided in 10 CFR 50.75(f)(1), each power reactor licensee is required to report to the Nuclear Regulatory Ccmmission (NRC), on a calen'dar year basis, beginning on March 31,1999, t and every 2 years thereafter, on the status of its decommissioning funding for each reactor or part of reactor it owns.

Alabama Power Company (Alabama Power), hereby submits the information for operating licenses NPF-2 and NPF-8 as requested in accordance with 10 CFR 50.75(f)(1) for the Joseph M.

Farley Nuclear Plant. It is recognized by Alabama Power that Southern Nuclear Operating l

Company (Southern Nuclear) will be providing this information to the NRC. Although Southern Nuclear holds the operating license, Alabama Power is the licensed owner of Plant Farley Units 1

& 2, owning 100% of the facility.

I Based on the information presented herein, there is reasonable assurance that the NRC prescribed l minimum will be available to decommission Plant Farley Units 1 & 2 on the current expiration date of each unit's operating license as set forth in 10 CFR 50.75(c).

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if you have any questions concerning this matter, please call me, f Respectfully submitted,

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I i William B. Hutchins,Ill WB!U.1/JDB Enclosure OO 9904080124 990319~

PDR ADOCK 05000349 1 I

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l. Mr. Iloyle Page 2

March 18,1999 cc

Southern Nuclear Operating Company Mr. D. N. Morey, Vice President - Plant Farley U. S. Nuclear Regulatory Commission, Washington, DC Mr. J. I. Zimmerman .

l U. S. Nuclear Regulatory Commission, Region 11 l Mr. L. A. Reyes, Regional Administrator 1

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Enclosure t

1 Alabama Power Company '

Ownership Percentage- 100%

10 CFR 50.75(f)(1) Requirement . Unit 1 ' Unit 2 i

1. The minimum decommissioning fund estimate, j pursuant to 10 CFR 50.75 (b) and (c)1 $263,637,0002 $266,539,0002

l. 2. The amount accumule.ted at the end of the calcadar year preceding the date of the report for items included $126,916,9613 $120,966,6073 ,

in 10 CFR 50.75 (b) and (c).

3. A schedule of the annual amounts remnining to be See Schedul< in See Schedule in collected; for items in 'O CFR 50.75 (b) and (c).

Attachment 1 Attachment 2 1

j 4. The assumptions used regarding:

i Rates of escalation in decommissioning cost 4'5% 4.5%

l InformalDocket U-3295 Dated: 12/17/93 l Rates of Earnings on decommissioning funds 7'0% 7.0%

InformalDocket U-3295 Dated: 12/17/93 Rates of other factors used in funding projections N/A N/A J

5. Any contracts upon which the licensee is relying pursuant to 10 CFR 50.75(e)(1)(ii)(c) N/A' N/A

6. Any modiGcations to a licensee's current method No Modifications providing Onancial assurance occurring since the last External Sinking Fund submitted report. " Cost of Service" Rate Making  ;

7. Any material changes to trust agreements. See Attachment 3 ,

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The NRC formulas in section 10CFR50.75(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 perrrit: (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 the NRC decommissioning cost estimates. The costs of managing and storing spent fuel on site until transfer to DOE are not included in the cost formulas.

2 This number is L ased on NUREG-1307, Rev. 8 for the Burial factor and the December 1997 l values for the Labor anet Energy factors.

3 December trust earnings are not reflected on the company's books, therefore, the December 1998 balances on this report will not agree to other financial disclosures of the company.

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.- Attaclim:nt 1 -

Schidul)cf th3 Annurl Amcunts Rimrining ta be C:lltctId

. Alabama Power Company

, , Farley Nuclear Plant Unit 1 Minimum Beginning .

Ending Decommissioning Fund ' Fund Fund Fund Fund Year Balance EamJgs Contributions Balance . ' Estimate 1997 $263,637,000 1998 .

. 275,500,665 1999 . $126,916,961 $8,884,187 $10,269,707 $146,070,855 287,898,195 -

2000 146,070,855 10,224,960 10,269,707 166,565,522 300,853,614 2001 166,565,522 11,659,587 10,269,707 188,494,816 314,392,026 2002- 188,494,816 13,194,637 10,269,707 211,959,160 328,539,667 l 2003 211,959,160 14,837,141 10,269,707 237,066,008 343,323,953 l 2004 237,066,008 16,594,621 10,269,707 263,930,336 358,773,530 2005 263,930,336 18,475,123 0 282,405,459 374,918,339 i

2006 282,405,459 19,768,382 0 302,173,841 391,789,665 2007' 302,173,841 21,152,169 0 323,326,010 409,420,199 2008 323,326,010 22,G32,821 0 345,958,831 427,844,1C8 l 2009 345,958,831 24,217,118 0 370,175,949 447,097,093 l

2010 370,175,949 25,912,316 0 396,088,265 467,216,462 2011 396,088,265 27,726,179 0 423,814,444 488,241,203

'2012 423,814,444 29,667,011 0 453,481 35 510,212,057 2013 453,481,455 31,743,702 0 485,225,167 533,171,600 2014 485,225,157 33,965,761 0 519,190,918 557,164,322 l 2015 519,190,918 36,343,364 0 555,534,282 582,236,717 L 2016 555,534,282 38,887,400 0 594,421,382 608,437,369 l 2017 594,421,682 41,609,518 0 636,031,199 635,817,050 l

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l Attachm:nt 2 j SchIdula of tha Annu:1 Am::unts Ramiining to be C::llret:d )

Alabama Power Company Farley Nuclear Plant Unit 2 Minimum Beginning Ending Decommissioning Fund Fund Fund Fund Fund Year Balance Eamings Contributions Balanc_e. Esiimate_

1997 $266,539,000 1998 278,533,255 1999 $120,066,607 $8,467,662 $10,015,198 $139,449,467 291,067,251  :

2000 139,449,467 9,761,463 10,015,198 159,226,128 304,165,278 I 2001 159,226,128 11,145,829 10,015,198 180,387,155 317,852,715 l 2002 180,387,155 12,627,101 10,015,198 203,029,454 332,156,087 l 2003 203,029,454 14,212,062 10,015,198 227,256,714 347,103,111 2004 227,256,714 15,907,970 10,015,198 253,179,882 362,722,751 2005 253,179,882 17,722,592 0 270,902,474 379,045,275 2006 270,902,474 18,963,173 0 289,865,647 396,102,313 ,

2007 289,865,647 20,290,595 0 310,156,242 413,926,917 l 2008 310,156 242 21,710,937 0 331,867,179 432,553,628 l 2009 331,867.179 23,230,703 0 355,097,881 452,018,541 2010 355,097,881 24,856,852 0 379,954,733 472,359,376 2011 379,954,733 26,596,831 0 406,551,564 493,615,547 2012 406,551,564 28,458,610 0 435,010.174 515,828,247 l 2013 435,010,174 30,450,712 0 465,460,888 539,040,518 2014 465,460,886 32,582,262 0 498,043,148 563:297,342 2015 498,043,148 34,863,020 0 532,906,168 588,645,722 2016 532,906,168 37,303,432 0 570,209,600 615,134,779 2017 570,209,600 39,914,672 0 610,124,272 642,815,844 2018 610,124,272 42,708,699 0 652,832,971 671,742,557 l 2019 652,832,971 45,698,308 0 698,531,279 701,970,973 l 2020 698,531,279 48,897,190 0 747,428,469 733,559,666 '

2021 747,428,469 52,319,993 0 799,748,462 766,569,851

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.. .e Attachment 3 Matend Changes to Trust Agreement

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Jtme 1991 Executed NonqualiGed Master Nuclear Decommissioning Yrust Agreement with First Alabama Bank, Mobi!c February 1994 Executed Investroent Management Agreement with W. H. Reaves & Co. for the  ;

Nonqualified Master Nuclear Decommissioning Trust February 1994 Executed Investment Management Agreement with ANB Investment Management and l I

Trust Conspany for the Nonqualified Master Nuclear Decommissioning Trest i

February 1994 Executed Investment Management Agreements with Loomis, Sayles & Company for the l Nonqualified Master Nuclear Decommissioning Trust and the Qualified Master Nuclear :

Decommissioning Trust t

December 1995 Executed Investment Management Agreement with Flaherty & Crumrine, Inc. for the Nonqualified Master Nuclear Decommissioning Trust 1

November 1996 Named Mellon Bank, N. A. successor trustee for the_ Nonqualified Master Nuclear Decommissioning Trust and the Qualified Master Nuclear Decommissioning Trust t

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