ML090300120
| ML090300120 | |
| Person / Time | |
|---|---|
| Site: | Kewaunee  |
| Issue date: | 12/18/2008 |
| From: | Price J A Dominion Energy Kewaunee |
| To: | Document Control Desk, Office of Nuclear Reactor Regulation |
| References | |
| 08-0702 | |
| Download: ML090300120 (6) | |
Text
Dominion Energy Kewaunee, Inc.5000 Dominion Boulevard, Glen Allen, VA 23060 Dominion December 18, 2008 Attention:
Document Control Desk Serial No. 08-0702 U. S. Nuclear Regulatory Commission NL&OS/TJS R1 Washington, D. C. 20555-0001 Docket No. 50-305 License No. DPR-43 DOMINION ENERGY KEWAUNEE, INC.KEWAUNEE POWER STATION REPORT PURSUANT TO 10 CFR 50.75(f)(3)
The Kewaunee Power Station (KPS) operating license expires on December 21, 2013.Pursuant to 10 CFR 50.75(f)(3), Dominion Energy Kewaunee, Inc. (DEK) is required to submit a preliminary decommissioning cost estimate at or about five years prior to the current KPS license expiration (i.e., by December 21, 2008). Although a license renewal application has been submitted and accepted for review, this five-year requirement remains in effect.An updated site-specific estimate of the cost to decommission KPS was recently prepared for DEK by EnergySolutions.
The estimate refreshed the "DECON" scenario methodology from an earlier 2006 EnergySolutions study.The EnergySolutions 2006 study included general assumptions concerning soil contamination
/ remediation (e.g., allowances made for costs to remediate typical percentages of soils in Protected Area, settling basins, drainage fields, etc.). This approach was also used for the 2008 refreshed study. A subsequent review of the KPS records required to be maintained by DEK per 10 CFR 50.75(g) confirmed that no major spills requiring soil remediation have occurred onsite to date. Therefore, the general assumptions concerning soil remediation in the 2008 refreshed study appear conservative and bounding.
A copy of the 2008 EnergySolutions study is attached.The EnergySolutions 2008 study contains three items that require clarification.
First, the study conservatively assumed that DEK will obtain a specific license for the KPS Independent Spent Fuel Storage Installation (ISFSI). This assumption carries throughout the study (e.g., language referring to ISFSI license renewal).
In fact, the KPS ISFSI will use the general license provision of Part 72. Second, the 2008 Study assumed Class B and C Low Level Radioactive Waste (LLRW) from decommissioning will be stored at the KPS ISFSI. This is a conservative assumption for the purposes ofthe cost study, but does not imply a determination that such storage will be required.Finally, also with respect to Class B and C LLRW, the 2008 study considers the anticipated operational B and C waste generated from the present until 2013 as part of decommissioning fund wastes. Although this conservatively addresses Class B and C waste in the cost study, DEK is addressing these wastes as operational rather than decommissioning costs.The cost to perform the radiological portion of decommissioning KPS if the plant were to be permanently shut down upon expiration of its current operating license in 2013, is A00o Serial No. 08-0702 Docket No. 50-305 Page 2 of 5 estimated at $380.6 million (in 2008 dollars), based upon the updated site specific analysis.The annual cash flow analysis for the radiological portion of the KPS decommissioning cost is shown in Table 1 below. This analysis assumes the "DECON" decommissioning methodology using the recently updated decommissioning cost study, applies a 2% real rate of return during the decommissioning period and reflects the DEK decommissioning trust fund balance as of 10/31/2008.
Table 1 -Annual Cash Flow Calculations
-Inputs Kewaunee -No License Renewal Decommissioning Annual Cash Flow Analysis -
License Termination 10 CFR 50.75(c)(in Thousands)
Dates Amounts Notes Current Value ofQF as of 1013112008
$ 380,681,436 Current Value of NQF as of 10/31/2008
$Guaranty Amount 10/31/2008
$Total Fund Balances as of 10/31/2008
$ 380,681,436 NRC Minimum as of 12/31/2007
$ 327,497,734 Calculation Start Year 2008 Prorated for 10/3112008 Projected Decom Funds value atCalc date 10/31/2008
$ 380,681,436 Projected Decom Study costs 5 0.75(c) at Calc date 10/31/2008
$ 380,575,241 License Termination Costs Start of Decom Expenditures Year 2013 (12/21/2013)
(12/21/2013) 6.240% Fund Growth Rate 3.233% Cost Esc Rate 3.233% ]Cost Esc Rate 5.233% Fund Growth rate 6.240% Discount Rate (2008 -2013) -"after-tax" growth rate for the Trust (2008 -2013) -Site Spec Decom cost escalation rate (2013 -end of Decom) -Site Spec Decom cost escalation rate (2014 -end of Decom) -"after-tax" Trust growth rate (assumes 2% Real Rate of Return)(Based on Corporate Treasury or Corporate Modeling)Column 1: Column 2: Column 3: Column 4: Column 5: Column 6: Reflects the beginning of each year, except for 2008, which reflects a partial year.Reflects the beginning trust fund balance for each year 0 $380.7 million starting balance as of 10/31/2008 Reflects annual earnings on funds in trust. A 6.24% fund growth rate is used for 2008 through 2013 and a 2% real rate of return (5.233% fund growth rate less the 3.223% cost escalation rate) is used for 2014 and after. 2008 earnings are pro-rated Reflects the radiological portion of the EnergySolutions Revised Study annual cash flows in future dollars.Reflects the end of year trust fund balance after earnings are added andexpenditures are subtracted for that year.Reflects the radiological portion of the EnergySolutions Revised Study annual cash flows in nominal 10/31/2008 dollars.
Serial No. 08-0702 Docket No. 50-305 Page 3 of 5 Table 1 -Annual Cash Flow Calculations (continued)
KPS Annual Summary Cash Flow -50.75(c ) Radiological Portion (in future dollars)Beg of Year License Term End of Year License Term Balance Earnings Expenditures Balance Expenditures Year (Future $) (Future $) (Future $) (Future $) (in 10/31/2008
$)10/31/2008
$ 380,681,436
$ 3,959,879
$ $ 384,641,315
$01/01/2009
$ 384,641,315
$ 24,001,618
$ $ 408,642,933
$01/01/2010
$ 408,642,933
$ 25,499,319
$ $ 434,142,252
$01/01/2011
$ 434,142,252
$ 27,090,477
$ $ 461,232,728
$01/01/2012
$ 461,232,728
$ 28,780,922
$ $ 490,013,651
$01/01/2014
$ 518,659,257
$ 27,138,853
$ 64,139,088
$ 481,659,022
$ 52,993,679 01/01/2015
$ 481,659,022
$ 25,202,815
$ 70,125,671
$ 436,736,167
$ 56,125,713 01/01/2016
$ 436,736,167
$ 22,852,226
$ 108,578,530
$ 351,009,863
$ 84,180,665 01/01/2017
$ 351,009,863
$ 18,366,596
$ 93,936,358
$ 275,440,101
$ 70,548,155 01/01/2018
$ 275,440,101
$ 14,412,407
$ 61,099,448
$ 228,753,061
$ 44,450,104 01/01/2019
$ 228,753,061
$ 11,969,507
$ 11,635,347
$ 229,087,221
$ 8,199,708 01/01/2020
$ 229,087,221
$ 11,986,992
$ 13,333,973
$ 227,740,241
$ 9,102,531 01/01/2021
$ 227,740,241
$ 11,916,511
$ 48,910,922
$ 190,745,830
$ 32,343,871 01/01/2022
$ 190,745,830
$ 9,980,778
$ -$ 200,726,608
$01/01/2023
$ 200,726,608
$ 10,503,023
$ -$ 211,229,631
$01/01/2024
$ 211,229,631
$ 11,052,593
$ -$ 222,282,224
$1 01/01/20251
$ 222.282.224
$ 11.630.921
$ 19.797.839
$ 214.115.306
$ 11.527579 150.75(c ) Cost Estimate (in 10/31/2008
$)I $ 380,575,241 1 50.75(c )Cost Estimate (in Future $) $ 510,283,357 Remaining funds at end of 50.75(c) (Discounted to 2008 $)$ 74,496,726 k-The analysis shown in Table 1 demonstrates that sufficient funding exists for the radiological portion of decommissioning.
The analysis further shows that there is a potential
$208.5 million (in 2026 dollars) of available funds, after the radiological portion of decommissioning is satisfied.
Serial No. 08-0702 Docket No. 50-305 Page 4 of 5The calculated NRC minimum is $327.5 million in 12/31/2007 dollars as shown by Table 2 below.Table 2 KPS -NRC Minimum Calculation Worksheet No License Renewal -12 21 2013 (in whole dollars)Based on NUREG-1307, REV 12 Thermal Power Rating -MWt 1,772 PWR Formula $(75 + 0.0088P)Base Cost (January 1986 Dollars) $90,593,600 Adjustment Factor (12/31/2007 Dollars) 3.6150206372 Adjusted Level (12/31/2007 Dollars) $327,497,734 NRC Minimum as of 12/31/2007
$327,497,734 Factor L (1) Factor E (2) Factor B (3) Adjustment Factor Weighting 0.65 0.13 0.22 2007 2.1667 2.2802 8.683 Components 1.4083 0.2964 1.9103 3.6150206 Region -Labor 1986 Ref 12/3112007 2005/1986 Midwest 48.6 105.3 2.167 4.6944 1986 Ref 12/31/2007 2005/1986Industrial Electric (Px) 114.2 180.0 1.576 58%Light Fuel Oil (Fx) 82.0 266.7 3.252 42%Burial Adjustment Factor (PWR) 8.683 1NUREG-1307 Revl2 (1) Factor L: Labor escalation factor to current year, the source is Bureau of Labor Statistics Data, Employment Cost Index, Series ecu13302i (Midwest Region) through 12/2005. Starting 01/2006 -Table 6 -Midwest Region -East North Central.(2) Factor E: Energy escalation factor to current year, the source is a weighted calculation using Bureau of Labor Statistics Data, Producer Price Index-Commodities, series wpu0543 (industrial electric power) and wpu 0573 (light fuel oils)(3) Factor B::LLRW escalation factor for Non-Atlantic Compact, South Carolina, per NUREG-1307, Rev 12, Table 2.1 assuming the application of waste vendor sevices to reduce burial volumes As previously noted, a trust fund balance of $380.7 (in 2008 dollars) is available for the radiological portion of decommissioning.
The NRC minimum calculation when compared to the funds available for radiological decommissioning in the trust fund demonstrates that the NRC minimum is fully funded.Please contact Mr. David A. Sommers at (804) 273-2823 if you have any questions or require additional information.
Sincerely, an Price President
-Nuclear Engineering Dominion Energy Kewaunee, Inc.
Serial No. 08-0702 Docket No. 50-305 Page 5 of 5 Attachment
-Decommissioning Cost Estimate Study Of The Kewaunee Nuclear Power Plant (EnergySolutions)
Commitments made in this letter: None cc: U. S. Nuclear Regulatory Commission Region III 2443 Warrenville Road, Suite 210 Lisle, IL 60532-4352 NRC Senior Resident Inspector Kewaunee Power Station Mr. P. S. Tam NRC Project Manager Kewaunee U. S. Nuclear Regulatory Commission One White Flint North Mail Stop 0-8 H4A 11555 Rockville Pike Rockville, MD 20852-2738
~,1 Serial No. 08-0702 KPS 50.75(f)(3)
Report Attachment DECOMMISSIONING COST ESTIMATE STUDY OF THE KEWAUNEE NUCLEAR POWER PLANT BY ENERGYSOLUTIONS KEWAUNEE POWER STATION DOMINION ENERGY KEWAUNEE.
INC.