ML110910057
| ML110910057 | |
| Person / Time | |
|---|---|
| Site: | Quad Cities  |
| Issue date: | 03/30/2011 |
| From: | Montgomery C R MidAmerican Energy Co |
| To: | Document Control Desk, Office of Nuclear Reactor Regulation |
| References | |
| Download: ML110910057 (5) | |
Text
MidAmerican MidAmerican Energy 4299 NW. Urbandale Drive ENERGY Urbandale, Iowa 50322 OBSESSIVELY, RELENTLESSLY AT YOUR MVW= 515 281-2976 Telephone 515 242-4398 Fax crmont-qomerv@rmidamerican.corn Charles R. Montgomery Managing Senior Attorney March 30, 2011 U.S. Nuclear Regulatory Commission Attention:
Document Control Desk Mail Stop O-P1-17 One White Flint North 11555 Rockville Pike Rockville, MD 20852-2738 Re: Decommissioning Funding Status Report Pursuant to 10 CFR§50.75(f)(1)
Document Control Desk: Enclosed is a signed original version of MidAmerican Energy Company's Decommissioning Funding Status Report for MidAmerican's twenty-five (25) percent share of the Quad Cities Nuclear Power Station, submitted pursuant to 10 CFR §50.75(f)(1).
If you have any questions regarding this submission, please contact the undersigned.
Respectfully submitted, Charles R. Montgomery Managing Senior Attorney MidAmerican Energy Company 4299 NW Urbandale Drive Urbandale, Iowa 50322 Phone: (515) 281-2976 Fax: (515) 242-4398 e-mail: crmontgomeryamidamerican.com 2010 DECOMMISSIONING FUNDING STATUS REPORT 10 CFR 50.75(f)(1)(For The Year Ending December 31, 2010)QUAD CITIES NUCLEAR POWER STATION, UNITS 1 & 2 Submitted by MidAmerican Energy Company Dated March 30, 2011 OVERVIEW This Decommissioning Funding Status Report is being submitted pursuant to 10 CFR 50.75(f)(1) by MidAmerican Energy Company (MEC), a twenty-five percent owner of Quad Cities Nuclear Power Station, Units 1 & 2 (Quad Cities).ADDITIONAL INFORMATION 1.) Amount of decommissioning funds estimated to be required pursuant to 10 CFR 50.75(b) and (c).Determined in accord with 10 CFR 50.75(b) and applicable formulas in 10 CFR 50.75(c)and reported in end of year 2010 dollars.NRC Minimum Unit 1 $149,062,699 Unit 2 $149,062,699 Totals $298,125,398 NRC Minimum (Amount Required for Prepayment)
Unit 1 $89,963,139 Unit 2 $89,963,139 Totals $179,926,278 62.) Amount accumulated to the end of the calendar year preceding the date of the report.As of December 31, 2010, MEC had accumulated:
$294,480,454.
External Trust Fund Balance (Fair Market value)Unit 1 $147,196,522.
Unit 2 $147,283,932.
Totals $294,480,454.
3.) Schedule of the annual amount remaining to be collected.
Within the meaning of 10 CFR 50.75(e)(1)(ii)(A), MEC collects the estimated total cost of decommissioning through rates established by "cost of service" or similar ratemaking regulation.
On July 27, 2007 MidAmerican Energy Company received an Iowa Utilities Board (IUB) Order Approving Stipulation and Agreement which stated that MidAmerican's annual Iowa jurisdictional decommissioning cost included in the cost of service is $1,595,964 divided equally between the two Quad Cities Units, commencing 2
January 1, 2007. MidAmerican plans to continue customer collections at that same level through the operating license period of the plant. On October 28, 2004 the NRC issued renewed facility operating licenses for Quad Cities Nuclear Power Station Unit 1 (License No. DPR-29,) and Unit 2 (License No. DPR-30) effective as of the date of issuance and which shall expire at midnight on December 14, 2032, in effect extending the licenses an additional twenty years.4.) Assumptions used regarding rates of escalation in decommissioning costs, rates of earnings on decommissioning funds, and rates of other factors used in funding projections.
In filings with the IUB, MEC periodically utilizes appropriate assumptions for decommissioning cost escalations and earnings rates. Solely for purposes of meeting NRC's minimum requirements, MEC has calculated that the current fund balances and annual funding levels, together with earnings at a 2 percent annual real rate of return as permitted by 10 CFR 50.75(e)(1)(ii), satisfy NRC's minimum funding assurance requirements.
Given the current fund balances, anticipated earnings on the funds, and planned future contributions, MEC expects that fully adequate funding will be available for each unit at the time of decommissioning.
5.) Any contracts upon which the licensee is relying pursuant to 10 CFR 50.75(e)(1)(v).
MEC is not relying upon any contract for purposes of providing decommissioning funding within the meaning of 10 CFR 50.75(e)(1)(v).
6.) Any modifications occurring to a licensee's current method of providing financial assurance since the last submitted report.MEC continues to use the external sinking fund method of providing decommissioning funding assurance.
7.) Any material changes to trust agreements.
Changes were made to the trust agreements in March, 2009, to accommodate a transfer of assets from the non-qualified trusts to the qualified trusts, permitted under IRC Section 468A and related Treasury Regulations.
The transfer of assets occurred in March, 2009.No additional changes were needed for compliance with 10 CFR 50.75(h)(2).
The following table identifies the current Trustee and Investment Manager for each fund.3 Trust Trustee Investment Manager Unit 1, Qualified The Bank of New York NISA Investment Advisors Mellon Unit 1, Non-Qualified The Bank of New York NISA Investment Advisors Mellon Unit 2, Qualified The Bank of New York NISA Investment Advisors Mellon Unit 2, Non-Qualified The Bank of New York NISA Investment Advisors Mellon MIDAMERICAN ENERGY COMPANY By: a___________-
--Charles R. Montgomery, Managi3em"r Attorney MidAmerican Energy Compa 4299 Northwest Urbandale rive Urbandale, IA 50322-7916 (515) 281-2976 4