CNL-17-021, Decommissioning Funding Status Report

Decommissioning Funding Status Report

ML17090A189
Person / Time
Site:	Browns Ferry, Watts Bar, Sequoyah
Issue date:	03/30/2017
From:	James Shea Tennessee Valley Authority
To:	Document Control Desk, Office of Nuclear Reactor Regulation
References
CNL-17-021
Download: ML17090A189 (6)

Text

Tennessee Valley Authority, 1101 Market Street, Chattanooga, Tennessee 37402 CNL-17-021 March 30, 2017 10 CFR 50.75(f)(1)

ATTN: Document Control Desk U.S. Nuclear Regulatory Commission Washington, D.C. 20555-0001 Browns Ferry Nuclear Plant, Units 1, 2, and 3 Renewed Facility Operating License Nos. DPR-33, DPR-52, and DPR-68 NRC Docket Nos. 50-259, 50-260, and 50-296 Sequoyah Nuclear Plant, Units 1 and 2 Renewed Facility Operating License Nos. DPR-77 and DPR-79 NRC Docket Nos. 50-327 and 50-328 Watts Bar Nuclear Plant, Units 1 and 2 Facility Operating License Nos. NPF-90 and NPF-96 NRC Docket Nos. 50-390 and 50-391

Subject:

Decommissioning Funding Status Report

References:

1. TVA letter to NRC, CNL-15-017, Decommissioning Funding Update, dated March 31, 2015 (ML15098A176)

2. NRC letter to TVA, Issuance of Renewed Facility Operating Licenses Numbers DPR-77 and DPR-79 for Sequoyah Nuclear Plant, Units 1 and 2, dated September 25, 2015 (ML15097A454)

3. NRC letter to TVA, Issuance of Facility Operating License No. NPF-96, Watts Bar Nuclear Plant Unit 2, dated October 22, 2015 (ML15251A587)

4. TVA letter to NRC, CNL-16-021, Sequoyah Nuclear Plant (SQN) Units 1 and 2 - Nuclear Decommissioning Trust Fund Balance - Request for Exemption, dated March 10, 2016 (ML16071A237)

5. TVA letter to NRC, CNL-15-189, Decommissioning Funding Update, dated September 10, 2015 (ML15253A867)

6. TVA letter to NRC, CNL-16-106, Sequoyah Nuclear Plant (SQN) Units 1 and 2 - Nuclear Decommissioning Trust Fund Balance - Revised Request for Exemption, dated June 24, 2016 (ML16179A346)

7. NRC letter to TVA, Sequoyah Nuclear Plant Units 1 and 2, Exemption from the Requirements of 10 CFR 50.75(h)(2) and 10 CFR 50.82(a)(8)

(CAC NOs. MF7562 AND MF7563), dated September 9, 2016 (ML16208A569)

U.S. Nuclear Regulatory Commission CNL-17-021 Page 2 March 30, 2017 In accordance with the requirements of 10 CFR 50.75(f)(1), Tennessee Valley Authority (TVA) is reporting on the status of decommissioning funding for Browns Ferry Nuclear Plant (BFN),

Units 1, 2, and 3; Sequoyah Nuclear Plant (SQN), Units 1 and 2; and Watts Bar Nuclear Plant (WBN), Units 1 and 2. The reporting requirements and corresponding TVA information follow.

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

Decommissioning cost estimates were calculated using the formulas provided in NUREG-1307, Revision 16, Report on Waste Burial Charges, utilizing the waste burial adjustment factors for Generators Located in the Unaffiliated States and those Located in Compact-Affiliated States having no Disposal Facility. Bureau of Labor Statistics indices for the end of the 2016 calendar year were taken from the sources referenced by NUREG-1307. The calculated estimates for the end of calendar year (CY) 2016 are provided in Table 1. The dollar amounts shown in Table 1 have been rounded to the nearest hundred thousand dollars.

Table 1. Decommissioning Cost Estimates for end of CY 2016 Number Cost per Unit Total Plant Cost Plant of Units ($, in millions) ($, in millions)

BFN 3 642.1 1,926.3 SQN 2 484.2 968.3 WBN 2 484.2 968.3

2. The amount accumulated in the TVA decommissioning fund at the end of the calendar year 2016 for the items included in 10 CFR 50.75(b) and (c):

In Reference 1, TVA submitted the latest Decommissioning Funding Status Report, which provided the status of decommissioning funding for BFN, Units 1, 2, and 3; SQN, Units 1 and 2; and WBN, Unit 1. Subsequent to the submittal of Reference 1, two events occurred that necessitated the reallocation of funds to proportionally balance TVAs nuclear decommissioning trust (NDT) funds. On September 25, 2015, TVA received renewed operating licenses for SQN, Units 1 and 2 (Reference 2), and on October 22, 2015, TVA received the operating license for WBN, Unit 2 (Reference 3). The operating license renewals at SQN, Units 1 and 2, resulted in an immediate overfunding of their respective NDT funds due to the 20 additional reactor years per unit for additional fund earnings.

Conversely, as provided in Reference 5, the establishment of a new NDT fund for WBN Unit 2 required annual contributions. On March 10, 2016 (Reference 4), and supplemented by letter dated June 24, 2016 (Reference 6), TVA requested a one-time exemption from the requirements of 10 CFR 50.82(a)(8) and 10 CFR 50.75(h)(2) to authorize TVA to reallocate surplus funds from its NDT funds for SQN, Units 1 and 2, to the NDT funds for BFN, Units 1, 2, and 3, and WBN, Units 1 and 2. On September 9, 2016, the NRC approved the exemption (Reference 7). TVA reallocated the NDT funds on September 27, 2016. TVAs decommissioning fund balances for each of the

U.S. Nuclear Regulatory Commission CNL-17-021 Page 3 March 30, 2017 seven units at the end of CY 2016 are provided in Table 2. The dollar amounts shown in Table 2 have been rounded to the nearest dollar.

Table 2. Decommissioning Trust Fund Balances Decommissioning Fund Balance Plant, Unit

($)

BFN, Unit 1 341,250,600 BFN, Unit 2 332,599,271 BFN, Unit 3 301,524,766 SQN, Unit 1 188,706,076 SQN, Unit 2 179,770,274 WBN, Unit 1 239,158,220 WBN, Unit 2 90,362,048

3. A schedule of the annual amounts remaining to be collected for items in 10 CFR 50.75(b) and (c):

TVA has established a method to provide funding assurance on an ongoing basis. This method establishes a projection of necessary funds at the end of each calendar year based upon current decommissioning cost estimates and assumptions regarding escalation and rate of earnings. Each year, TVA reviews the performance of its decommissioning trust fund. If funds fall below an established threshold of 95 percent of projected trust fund balances, TVA will make contributions to the trust fund or provide other methods of funding assurance to ensure adequate funding.

The table attached to TVAs March 31, 2015, letter (Reference 1) has been updated herein for the current calculated obligations, expressed in current dollars. This updated table is provided in the enclosure to this letter. At the end of 2016, the trust unit balances shown in Table 2 were greater than the respective present values of the costs to decommission each unit. Therefore, no amounts are scheduled to be collected at this time.

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:

The assumed escalation in decommissioning costs is four percent.

TVA assumed a projected annual real rate of return on decommissioning funds of five percent, as authorized by the TVA Board of Directors, TVAs rate-making authority.

U.S. Nuclear Regulatory Commission CNL-17-021 Page 4 March 30 , 2017

5. Any contracts upon which the licensee is relying pursuant to 10 CFR 50. 75(e)(1)(v) :

None.

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

None.

7. Any material changes to trust agreements.

TVA's Sixth Amendment to the TVA Master Decommissioning Trust Agreement was provided as Enclosure 1 to Reference 5.

uly. L If you have any questions concerning this matter, please contact Gordon Williams at 423-751-2687 .

resident , Nuclear Licensing

Enclosure:

Updated Projected Decommissioning Funding Levels for TVA Operating Units cc (Enclosure) :

NRC Regional Administrator - Region II NRC Senior Resident Inspector - Browns Ferry Nuclear Plant NRC Senior Resident Inspector- Sequoyah Nuclear Plant NRC Senior Resident Inspector- Watts Bar Nuclear Plant NRC Project Manager - Browns Ferry Nuclear Plant NRC Project Manager - Sequoyah Nuclear Plant NRC Project Manager - Watts Bar Nuclear Plant

ENCLOSURE Updated Projected Decommissioning Funding Levels for TVA Operating Units

Updated Projected Decommissioning Funding Levels for TVA Operating Units*

Real BFN1 12-20-2033 BFN2 6-28-2034 BFN3 7-2-2036 Updated Projected SQN1 9-17-2040 Funding Levels for TVA Decommissioning SQN2 9-15-2041 Operating Units* WBN1 11-9-2035 WBN2 10-21-2055 ALL UNITS Return Annual Projected Annual Projected Annual Projected Annual Projected Annual Projected Annual Projected Annual Projected Annual Targeted 5.0% Annual Funding Fund Annual Funding Fund Annual Funding Fund Annual Funding Fund Annual Funding Fund Annual Funding Fund Annual Funding Fund Annual Funding Fund Year Disbursement Assurance Assets Disbursement Assurance Assets Disbursement Assurance Assets Disbursement Assurance Assets Disbursement Assurance Assets Disbursement Assurance Assets Disbursement Assurance Assets Disbursement Assurance Assets 2016 $233.1 $227.2 $206.0 $126.5 $120.5 $160.3 $60.6 $1,134 2017 $0.0 $244.8 $0.0 $238.6 $0.0 $216.3 $0.0 $132.8 $0.0 $126.5 $0.0 $168.3 $0.0 $63.6 $0.0 $0 $1,191 2018 $0.0 $257.0 $0.0 $250.5 $0.0 $227.1 $0.0 $139.4 $0.0 $132.8 $0.0 $176.7 $0.0 $66.8 $0.0 $0 $1,250 2019 $0.0 $269.8 $0.0 $263.0 $0.0 $238.4 $0.0 $146.4 $0.0 $139.5 $0.0 $185.5 $0.0 $70.1 $0.0 $0 $1,313 2020 $0.0 $283.3 $0.0 $276.2 $0.0 $250.3 $0.0 $153.7 $0.0 $146.4 $0.0 $194.8 $0.0 $73.6 $0.0 $0 $1,378 2021 $0.0 $297.5 $0.0 $290.0 $0.0 $262.9 $0.0 $161.4 $0.0 $153.8 $0.0 $204.6 $0.0 $77.3 $0.0 $0 $1,447 2022 $0.0 $312.4 $0.0 $304.5 $0.0 $276.0 $0.0 $169.5 $0.0 $161.4 $0.0 $214.8 $0.0 $81.2 $0.0 $0 $1,520 2023 $0.0 $328.0 $0.0 $319.7 $0.0 $289.8 $0.0 $177.9 $0.0 $169.5 $0.0 $225.5 $0.0 $85.2 $0.0 $0 $1,596 2024 $0.0 $344.4 $0.0 $335.7 $0.0 $304.3 $0.0 $186.8 $0.0 $178.0 $0.0 $236.8 $0.0 $89.5 $0.0 $0 $1,675 2025 $0.0 $361.6 $0.0 $352.4 $0.0 $319.5 $0.0 $196.2 $0.0 $186.9 $0.0 $248.6 $0.0 $93.9 $0.0 $0 $1,759 2026 $0.0 $379.7 $0.0 $370.1 $0.0 $335.5 $0.0 $206.0 $0.0 $196.2 $0.0 $261.1 $0.0 $98.6 $0.0 $0 $1,847 2027 $0.0 $398.7 $0.0 $388.6 $0.0 $352.3 $0.0 $216.3 $0.0 $206.0 $0.0 $274.1 $0.0 $103.6 $0.0 $0 $1,940 2028 $0.0 $418.6 $0.0 $408.0 $0.0 $369.9 $0.0 $227.1 $0.0 $216.4 $0.0 $287.8 $0.0 $108.8 $0.0 $0 $2,037 2029 $0.0 $439.5 $0.0 $428.4 $0.0 $388.4 $0.0 $238.5 $0.0 $227.2 $0.0 $302.2 $0.0 $114.2 $0.0 $0 $2,138 2030 $0.0 $461.5 $0.0 $449.8 $0.0 $407.8 $0.0 $250.4 $0.0 $238.5 $0.0 $317.3 $0.0 $119.9 $0.0 $0 $2,245 2031 $0.0 $484.6 $0.0 $472.3 $0.0 $428.2 $0.0 $262.9 $0.0 $250.5 $0.0 $333.2 $0.0 $125.9 $0.0 $0 $2,358 2032 $0.0 $508.8 $0.0 $495.9 $0.0 $449.6 $0.0 $276.1 $0.0 $263.0 $0.0 $349.9 $0.0 $132.2 $0.0 $0 $2,475 2033 $0.0 $533.5 $0.0 $520.7 $0.0 $472.1 $0.0 $289.9 $0.0 $276.1 $0.0 $367.4 $0.0 $138.8 $0.0 $0 $2,598 2034 $0.0 $533.5 $0.0 $495.7 $0.0 $304.3 $0.0 $289.9 $0.0 $385.7 $0.0 $145.7 $0.0 $0 $2,155 2035 $0.0 $520.4 $0.0 $319.6 $0.0 $304.4 $0.0 $402.3 $0.0 $153.0 $0.0 $0 $1,700 2036 $108.6 $0.0 $533.5 $0.0 $335.5 $0.0 $319.7 $0.0 $160.7 $0.0 $0 $1,458 2037 $642.1 $642.1 $108.6 $0.0 $352.3 $0.0 $335.6 $0.0 $168.7 $642.1 $0 $1,607 2038 $642.1 $642.1 $0.0 $369.9 $0.0 $352.4 $81.9 $0.0 $177.1 $642.1 $0 $1,623 2039 $108.6 $0.0 $388.4 $0.0 $370.0 $484.2 $484.2 $0.0 $186.0 $484.2 $0 $1,537 2040 $642.1 $642.1 $0.0 $402.3 $0.0 $388.5 $0.0 $195.3 $642.1 $0 $1,628 2041 $0.0 $402.3 $0.0 $205.1 $0.0 $0 $607 2042 $0.0 $215.3 $0.0 $0 $215 2043 $81.9 $0.0 $226.1 $0.0 $0 $308 2044 $484.2 $484.1 $81.9 $0.0 $237.4 $484.2 $0 $803 2045 $484.2 $484.2 $0.0 $249.3 $484.2 $0 $733 2046 $0.0 $261.7 $0.0 $0 $262 2047 $0.0 $274.8 $0.0 $0 $275 2048 $0.0 $288.6 $0.0 $0 $289 2049 $0.0 $303.0 $0.0 $0 $303 2050 $0.0 $318.1 $0.0 $0 $318 2051 $0.0 $334.0 $0.0 $0 $334 2052 $0.0 $350.7 $0.0 $0 $351 2053 $0.0 $368.3 $0.0 $0 $368 2054 $0.0 $386.7 $0.0 $0 $387 2055 $0.0 $402.3 $0.0 $0 $402

$0.0

$0.0

$81.9 $0.0

$484.2 $484.1 $484.2

$642.1 $642.1 $642.1 $484.2 $484.2 $484.2 $484.2 $3,862.9

• All Dollars in Millions