ML17094A522

Submittal of Decommissioning Funding Status Report

ML17094A522
Person / Time
Site:	Surry, North Anna
Issue date:	03/30/2017
From:	Stoddard D Virginia Electric & Power Co (VEPCO)
To:	Document Control Desk, Office of Nuclear Reactor Regulation
References
17-083
Download: ML17094A522 (5)

Text

VIRGINIA ELECTRIC AND POWER COMPANY RICHMOND, VIRGINIA 23261 March 30, 2017 United States Nuclear Regulatory Commission Serial No.17-083 Attention: Document Control Desk NRA!TJS RO Washington, D. C. 20555-0001 Docket Nos. 50-280, 281 338,339 License Nos. DPR-32, 37 NPF-4, 7 VIRGINIA ELECTRIC AND POWER COMPANY SURRY POWER STATION UNITS 1AND2 NORTH ANNA POWER STATION UNITS 1AND2 DECOMMISSIONING FUNDING STATUS REPORT Pursuant to 10 CFR 50. 75(f)(1 ), Virginia Electric and Power Company (Dominion), is providing this report on the status of decommissioning funding for each of the four nuclear power reactors referenced above. provides the following information for North Anna Power Station (NAPS) and Surry Power Station (SPS):

Table I - NRC Minimum Financial Assurance Amount as of 12/31/2016 Table II - Allocated Radiological Funds Held in External Trusts as of 12/31/2016 Table Ill - Current Annual Funding Levels - Radiological Portion Table IV - NRC Minimum Financial Assurance Summary Table The following information is provided in support and as part of this filing:

1. Preliminary December 2016 Bureau of Labor Statistics indices values are used because the final December 2016 indices values were not available at the time of this filing.

2. The escalation rate of decommissioning costs is held at 0% based on assuming 2% Real Rate of Return.

3. The growth rate on Trust Funds is held at the allowed 2% Real Rate of Return over the escalation rate.

4. No rate regulatory authority citation for SPS or NAPS is referenced because the 2% Real Rate of Return allowed by 50.75(e)(1)(ii) is used in the calculations.

5. There are no contracts upon which Dominion is relying under paragraph 10 CFR 50.75(e)(1)(v) and there were no modifications to the licensee's current method of providing financial assurance since the last submitted report.

6. The current annual funding amounts shown for SPS and NAPS (Attachment 1, Table Ill) reflect only those fund amounts that are dedicated to radiological decommissioning.

7. Trust Fund amounts shown for each of the units in this report are market value and after-tax on realized gains and losses. The Trust Fund balances have not been adjusted for unrealized gain or loss positions not currently taxable.

Serial No.17-083 Docket Nos. 50-280/2811338/339 Page 2 of 2 I 8. Since the previous biennial submittal on March 26, 2015 (Serial No.15-101,

.I ADAMS Accession No. ML15093A104) for SPS and NAPS, there have been no material changes to trust agreements established for nuclear decommissioning for the SPS and NAPS units.

Please contact Mr. Craig D. Sly at (804) 273-2784 if you have any questions or require additional information.

Sincerely, o~~

D. G. Stoddard Senior Vice President and Chief Nuclear Officer Virginia Electric and Power Company

Attachment:

Nuclear Decommissioning Financial Assurance as of 12/31/2016 Commitments made in this letter: None cc: U. S. Nuclear Regulatory Commission Region II Marquis One Tower 245 Peachtree Center Avenue, NE Suite 1200 Atlanta, Georgia 30303-1257 NRC Senior Resident Inspectors Surry and North Anna Power Stations Ms. B. L. Mozafari NRC Project Manager (NAPS)

U.S. Nuclear Regulatory Commission, Mail Stop 08 H-12 One White Flint North 11555 Rockville Pike Rockville, MD 20852-2738 Ms. K. Cotton Gross NRC Project Manager (SPS)

U. S. Nuclear Regulatory Commission, Mail Stop 08 G-9A One White Flint North 11555 Rockville Pike Rockville, MD 20852-2738 Mr. J. E. Reasor, Jr.

Old Dominion Electric Cooperative Innsbrook Corporate Center, Suite 300 4201 Dominion Blvd.

Glen Allen, VA 23060

Serial No.17-083 Docket Nos. 50-280/281/338/339 I

r Attachment 1 Nuclear Decommissioning Financial Assurance as of 12/31/2016 Surry Power Station Units 1 and 2 North Anna Power Station Units 1 and 2 Virginia Electric and Power Company (Dominion)

Serial No.17-083 Docket Nos. 50-280/2811338/339 Attachment 1 Page 1of2 VIRGINIA ELECTRIC AND POWER COMPANY Nuclear Decommissioning Financial Assurance as of 12/31/2016 VIRGINIA ELECTRIC AND POWER COMPANY Nuclear Decommissioning Financial Assurance as of: 12/31/2016 Table I:

NRC Minimum Financial Assurance Amount as of: 12/31/2016 10 CFR 50. 75 (f)(1)

(Miiiions of Dollars)

(See Note 5) (See Note 5) (See Notes 1&5) (See Notes 1&5)

SllTY Suny North Anna North Anna Customer Unll1 Unlt2 Unlt1 Un112 Total Classification fSee Note 61 DPR-32 DPR-37 NPF-4 NPF-7 All Units lllrgiria State Corporation Corrrrission (VSCC) $ 366.89 $ 366.89 $ 337.89 $ 337.89 $ 1,409.57 CofT!lany CorlribtJion $ - $ - $ - $ - $ -

North Carolina Utilities Corrrrission $ 23.07 $ 23.07 $ 21.24 $ 21.24 $ 88.62 Federal Erergy Reg\Jatory Corrrrission 12.48 12.48 11.49 11.49 47.95

\/lrgiria Relall (notlrder\/SCCjuisdiclion) $ 49.12 $ 49.12 $ 45.24 $ 45.24 $ 188.70 Unallocated $ (0.76) l! (0.76) l! (0.70) l! (0.70) l! (2.92)

Total $ 450.8 $ 450.8 $ 415.2 $ 415.2 $ 1,731.9 Table II:

Allocated Radiological Funds Held In External Trusts as of: 12/31/2016 10 CFR 50.75 (f)(1)

(Millions ofDollars)

(See Note 2) (See Note 2) (See Notes 1 & 2) (See Notes 1 & 2)

SllTY Suny North Anna North Anna Customer Un111 Un112 Unlt1 Unit2 Total Classification ISee Note 61 DPR-32 DPR-37 NPF-4 NPF-7 All Units lllrgiria Slate Corporation Corrrrission (VSCC) $ 320.4 $ 312.2 $ 258.5 $ 245.6 $ 1,136.7 CofT!Jany CorlribtJion $ 3.6 $ 4.1 $ 1.4 $ 1.2 $ 10.3 North Carolina Utilities Corrrrission $ 19.5 $ 22.2 $ 19.3 $ 18.1 $ 79.2

$ $ $ 5.3 $ 4.9 $ 44.6 Federal Energy Reg\Jatory Corrrrission 16.4 18.1

\/lrgiria Relail (notlrder\/SCCjuisdiction) $ 46.9 $ 51.1 $ 42.0 $ 39.2 $ 179.3 Unallocated l! - l! - l! - l! - l! -

Total $ 406.8 $ 407.7 $ 326.5 $ 309.1 $ 1,450.1 Table Ill:

Current Annual Funding Levels - Radiological Portion 10 CFR 50.75 (f)(1)

(Millions of Dollars)

(See Note 1) (See Note 1)

SllTY Suny North Anna North Anna Customer Unlt1 Unit2 Unit 1 Unit2 Total Classlficafton DPR-32 DPR-37 NPF-4 NPF-7 All Units

\/lrgiria State Corporation Corrrrission (VSCC) $ - $ - $ - $ - $ -

CofT!Jany CorlribtJion $ 0.3 $ 0.3 $ 0.1 $ 0.1 $ 0.8 North Carolina Utilities Corrrrission $ - $ - $ - $ - $ -

Federal Erergy Reg\Jatory Corrrrission $ 0.1 $ 0.1 $ 0.1 $ 0.1 $ 0.4

\/lrgiria Relail (notlrder\/SCCjuisdiclion)

Unallocated $ - $ - $ - $ - $ -

Total $ 0.4 $ 0.4 $ 0.2 $ 0.2 $ 1.3

Serial No.17-083 Docket Nos. 50-280/2811338/339 Attachment 1 Page 2 of 2

• 1 VIRGINIA ELECTRIC AND POWER COMPANY Nuc ear Decomm1ss1onma F"manc1a . I Assurance as o f 12/31/2016 Table IV:

NRC Minimum Financial Assurance Summary Table 10 CFR 50. 75 (f)(1)

• (Millions ofDollars-exceptpercentages and years)

(See Note 5) (See Note 5) (See Notes 1&5) (See Notes 1&5)

SIJ'T}' Suny Nor1hAma Nor1hAnna Unlt1 Unlt2 Unlt1 Unlt2 Total DPR-32 DPR-37 NPF-4 NPF-7 All Units External External External External MeltlldforProvidi[!l Rrercial Assllllrce Sinking Fund Sinking Fund Sinking Fund Sinking Fund NRC MirirTUTIArrollls as ot 12131/2016 $ 450.8 $ 450.8 $ 415.2 $ 415.2 $ 1,731.9 Funds in E>temal Trusts as ot 12131/2016 $ 596.6 $ 587.8 $ 475.1 $ 446.3 $ 2,105.8 Allocated Radiological Funds in External Trusts as ot 12131/2016 $ 406.8 $ 407.7 $ 326.5 $ 309.1 $ 1,450.1 (See Note2)

Allocated Radiological Funds In External Trusts as ot 12131/2016 Mirus NRCMirirTUTIArrollltas ot 12131/2016 $ (44.0) $ (43.1) $ (88.6) $ (106.1) $ (281.9)

(See Notes 2 & 3)

Projected ArruaJ Escalation Faclors 0.00% 0.00% 0.00% 0.00%

ArruaJ Trust Fll'ds Earrirgs Rate (After Tax& Fees- assures 2% Real Rate of Retun) 2.00% 2.00% 2.00% 2.00%

YearThatCperating License E>pires I StartofDecolTITissioring (Reflects License Renewal forSlllY and North Arm) 2032 2033 2038 2040 NRC MirirTUTI Rnarcial Assurarce Arrou1 3.5years after startof DecolTITissioring ' $ 450.8 $ 450.8 $ 415.2 $ 415.2 $ 1,731.9 Estimated Radiological Funds In E>temal Trusts 3.5years afterstartof DecolTITissiorirg $ 603.0 $ 612.2 $ 541.2 $ 538.1 $ 2,294.5 (See Note 2)

Allocated Radiological Funds ine><eess or(underfi.rded)to NRCMirirTUTI 3.5years afterstartofDecolTITissioring $ 152.2 $ 161.5 $ 126.0 $ 122.9 $ 562.6 (See Notes 2, 3 & 4)

Estimated Radiological Funds inel<C0ss or(underfi.rded)to NRCMirirTUTI Dscoirted <.Sing Arn.el Trust Funds Earrings Rate to 12131/2016 $ $ 104.5 $ 109.6 $ 77.2 $ 71.8 $ 363.0 (See Notes 4 & 5)

Notes: Tables I through IV (Any minor differences in totals are due to rounding.)

1) The North Anna Power Station is jointly owned by Virginia Electric and Power Company (88.4%) and Old Dominion Electric Cooperative (11.6%). However, Virginia Electric and Power Company is responsible for 89.26% of the Decommissioning obligation. The amounts stated in the above tables reflect only that portion of the Decommissioning obligation attributable to Virginia Electric and Power Company.

2) The Allocated Radiological Fund amounts shown exclude amounts designated for the future decommissioning of the Independent Spent Fuel Storage Installations (ISFSls),

spent fuel management, and non-radiological decommissioning.

3) Negative amounts (if any) indicate that the Trust Fund values are less than the value of the NRC Minimum.

4) The Future Value calculation for SPS and NAPS reflects a 2% Real Rate of Return applied from 01/01/2017 to 3.5 years after start of Decommissioning assuming a 0%

Escalation Rate.

5) Adjustment Factors used in calculating NRC Minimum Values are based on preliminary December 2016 BLS Producer Price Indices, as final December 2016 indices were not available at the time of the calculation.

6) The allocation among customer classifications in Tables I and II is based on 2015 allocation percentages as the 2016 allocations have not yet been finalized.