NL-17-2015, Response to NRC RAIs Regarding Decommissioning Funding Status Reports

Response to NRC RAIs Regarding Decommissioning Funding Status Reports

ML18022B011
Person / Time
Site:	Hatch, Vogtle, Farley
Issue date:	01/22/2018
From:	Wheat J Southern Nuclear Operating Co
To:	Document Control Desk, Office of Nuclear Reactor Regulation
References
NL-17-2015
Download: ML18022B011 (33)

Text

• Southern Nuclear Regulatory Affairs 40 Inverness Center Parkway Post Office Box 1295 Birmingham, AL 35242 205 992 5000 tel 205 992 7601 fax JAN 2 2 2018 Docket Nos.: 50-348 50-321 50-424 NL-17-2015 50-364 50-366 50-425 U.S. Nuclear Regulatory Commission ATIN: Document Control Desk Washington, D. C. 20555-0001 Joseph M. Farley Nuclear Plant Units 1 and 2 Edwin I. Hatch Nuclear Plant Units 1 and 2 Vogtle Electric Generating Plant Units 1 and 2 Response to NRC RAis Regarding Decommissioning Funding Status Reports Ladies and Gentlemen:

By letters dated March 30, 2017, Southern Nuclear Operating Company (SNC) submitted decommissioning funding status reports in accordance with 10 CFR 50.75(f)(1) for the subject three plants. On November 8, 2017, the Nuclear Regulatory Commission (NRC) requested additional information to complete its review. Enclosed is the SNC response.

This letter contains no NRC commitments. If you have any questions, please contact Ken McElroy at (205) 992-7369.

Respectfully submitted,

~~~

Ju~Wheat Licensing Manager jtw/efb/cbg

Enclosure:

1. Response to NRC RAis Regarding Decommissioning Funding Status Reports cc: NRC Regional Administrator, Region II NRC NRR Project Manager- Farley, Hatch, and Vogtle 1-2 NRC Senior Resident Inspector- Farley, Hatch and Vogtle 1-2 SNC Records RTYPE: CVC7000

Joseph M. Farley Nuclear Plant {FNP) Units 1 and 2 Edwin I. Hatch Nuclear Plant {HNP) Units 1 and 2 Vogtle Electric Generating Plant {VEGP) Units 1 and 2 Enclosure 1 Response to NRC RAis Regarding Decommissioning Funding Status Reports to NL-17-2015 SNC Response to Decommissioning Funding RAis NRC Request for Additional Information SNC reported minimum decommissioning fund estimates, pursuant to 10 CFR 50.75(b) and (c),

in 2016 dollars, of $445,550,000, $582,062,000, and $421,872,000, for each unit at VEGP, HNP, and FNP, respectively. The NRC staff calculated minimum decommissioning fund estimates that were higher than SNC's reported calculations by $38.60 million, $32.62 million, and $36.55 million for each unit at VEGP, HNP, and FNP, respectively.

In performing its minimum formula calculations, the NRC staff applied low level waste (LLW) burial (Bx) escalation factors of 12.471, 13.132, and 12.471, for VEGP, HNP, and FNP, respectively. Because the SNC nuclear fleet is located in states that are members of the Southeast Compact, the NRC selected Bx escalation factors from the column entitled, "Bx Values for Generators Located in the unaffiliated States and those Located in Compact-Affiliated States having no Disposal Facility," in NUREG-1307, Revision 16, "Report on Waste Disposal Costs at Low-Level Waste Burial Facilities Final Report," Table 2-1 (page 6), "Values of Bx as a Function of LLW Burial Site and Year (ADAMS Accession No. ML17060A362).

For VEGP, HNP, and FNP, please identify the Bx escalation factor used to calculate the minimum formula amount reported in the March 30, 2017 submittals. Provide a justification for the chosen Bx escalation factor and the source of information and/or assumptions used to derive it. In particular, please provide calculations illustrating the derivation of the reported minimum formula amounts. If the use of a revised Bx escalation factor is deemed necessary, please resubmit the DFS reports for the respective plants.

SNC Response In performing its minimum formula calculations, SNC applied LLW Bx escalation factors of 10.971, 12.111, and 10.971, for VEGP, HNP, and FNP, respectively. Historically, SNC has used the Bx values associated with the South Carolina site for its calculations. As noted in the RAI, when NUREG-1307 Revision 16 was published in March 2017, a new option was added, for the first time, for Bx Values for those plants located in compact-affiliated states having no disposal facility. SNC agrees that this new option is now the most appropriate for the SNC plants. Therefore, SNC is resubmitting the DFS reports for December 2017 in the following attachments along with an illustration of the calculations and how the amounts are derived.

PageE1-1

Joseph M. Farley Nuclear Plant, Units 1 and 2 NRC Formula for Minimum Decommissioning Estimate (MOE)

$75 million+ 8,800(P) = MOE for a Pressurized Water Reactor (PWR) Plant< 3,400MWt Where: P = MWt reactor rating Plant Farley= 2,775 MWt MOE expressed in 1986 Dollars (to be escalated)

Escalation of NRC Formula for MOE Estimated Decommissioning Cost in Year XX= MOE X (.65L + .13E + .22B)

Where: "L" is the Labor factor. The Labor factor is to be obtained by data provided by the U.S.

Department of Labor- Bureau of Labor Statistics. Specifically, the appropriate regional data from the table entitled "Employment Cost Index- Private Industry Workers",

subtitled "Total Compensation" is to be used. In Farley's case, data from the South Region is to be used.

"E" is the Enerqv factor. The energy factor is to be obtained from the two component formula listed below specifically weighted for PWR plants:

.SSP+ .42F = E (Energy Factor)

Where: "P" is the component for electric power and "F" is the component for fuel oil.

Both "P" and "F" can be found in "Producer Price Indices", published by the U.S.

Department of Labor- Bureau of Labor Statistics. "P" is to be obtained from the Industrial Electric Power Index and "F" is to be obtained from the Light Fuel Oils Index.

"B" is the Waste Burial Factor. The Waste Burial factor is to be obtained from NRC report NUREG-1307, "Report on Waste Burial Charge" or its updates.

Farley's MOE and Escalation MOE= $75 million+ $8,800(P) (where P = 2,775 MWt)

$75 million+ $8,800(2,775)

$75 million+ $24.4 million = $99.4 million (1986 Dollars)

Farley Escalation of MOE= $99.4 million X (.65L + .13E + .22B)

December 2017 1

Joseph M. Farley Nuclear Plant, Units 1 and 2 2017 Decommissioning Fund Status Report December 2017 Response to Request for Additional Information The following table represents the indexes and MDE calculation used in the March 2017 submittal and the December 2017 re-submittal:

March 2017 Submittal December 2017 Submittal Labor Factor Labor Factor 19861ndex 50.6 2005 lndex3 1.98 12/2015 Index Used 1 124.6 12/2016 Index Used2 126.2 Labor Escalation 2.462 Labor Escalation 2.499 Energy Factor Energy Factor Industrial Electric Industrial Electric Power Power 19861ndex 114.2 19861ndex 114.2 12/2015 Index Used 1 214.8 12/2016 Index Used 2 211.7 Escalation 1.881 Escalation 1.854 Fuel Oil Fuel Oil 19861ndex 82.0 19861ndex 82.0 12/2015 Index Used 1 131.1 12/2016 Index Used 2 153.3 Escalation 1.599 Escalation 1.870 Energy Formula .58(1.881) + .42{1.599) Energy Formula .58(1.854) + .42{1.870) 1.091 + .671 1.075 + .785 Total Energy Escalation 1.762 Total Energy Escalation 1.860 Waste Burial Factor Waste Burial Factor Generators located in Combination of the unaffiliated states Compact Affiliated and 10.971 compact and those 12.471 Non-Compact South located in compact-Carolina affiliated states having no disposal facility MOE Calculation MOE Calculation Adjustment Factor .65(2 .462) + .13(1.762) Adjustment Factor .65(2.499) + .13(1.860)

+ .22{10.971) + .22{12.471) 1.6003 + .2290 + 2.413 1.624 + .242 + 2.743 4.243 (Rounded) 4.610 (Rounded)

Escalated Cost Formula $99.4 million X 4.243 Escalated Cost Formula $99.4 million X 4.610 March 2017 MOE $421.8 million December 2017 MOE $458.3 million 1

Used December 2015 index numbers due to December 2016 numbers not being finalized at the time the calculation was performed 2 Used December 2016 index values 3 Updated labor index to reflect 2005 as base year per NUREG-1307 December 2017 2

Enclosure Alabama Power Company Ownership Percentage - 100%

10 CFR 50.75(f)(1) Requirement Unit 1 Unit2 1 The NRC minimum decommissioning estimate, 2

$458,293,000 2 $458,293,000 pursuant to 10 CFR 50.75(b) and (c). 1 2 The amount accumulated at the end of the $402,098,838 $388,100,905 calendar year preceding the date of the report for items included in 10 CFR 50.75(b) and (c).

3 A schedule of the annual amounts remaining to be See Schedule in See Schedule in collected; for items in 10 CFR 50.75(b) and (c). Attachment 1 Attachment 2 4 The assumptions used regarding :

(a) rates of escalation in decommissioning 4.5% 4.5%

costs; (b) rates of earnings on decommissioning 7.0% 7.0%

funds; 2.5% 3 2.5% 3 (c) real rate of return; and N/A N/A (d) rates of other factors used in funding projections.

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

6 Any modifications to a licensee's current method None None of providing financial assurance occurring since the last submitted report.

7 Any material changes to trust agreements. See Attachment 3 See Attachment 3 NOTES:

1 The NRC formulas in section 10 CFR 50.75(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 permit: (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 amount is based on NUREG-1307, Rev. 16, for generators located in the unaffiliated states and those located in compact-affiliated states having no disposal facility and the December 2016 BLS data for labor and energy.

3 The real rate of return of 2.5% was established by the Alabama Public Service Commission's Order pertaining to Informal Docket U-3295 and subsequent submittals pursuant to that Order, most recently on October 28, 2008.

December 2017 3

Attachment 1 Schedule of the Annual Amounts Remaining to be Collected Alabama Power Company Farley Nuclear Plant Unit 1 Minimum Beginning Fund Fund Ending Fund Decommissioning Year Balance Fund Earnings Contributions Balance Fund Estimate 2016 402,098,838 458,293,000 2017 402,098,838 28,146,919 464,149 430,709,906 478,916,185 2018 430,709,906 30,149,693 464,149 461,323,748 500,467,413 2019 461,323,748 32,292,662 464,149 494,080,559 522,988,447 2020 494,080,559 34,585,639 464,149 529,130,348 546,522,927 2021 529,130,348 37,039,124 464,149 566,633,621 571,116,459 2022 566,633,621 39,664,353 464,149 606,762,123 596,816,699 2023 606,762,123 42,473,349 464,149 649,699,621 623,673,451 2024 649,699,621 45,478,973 464,149 695,642,743 651,738,756 2025 695,642,743 48,694,992 464,149 744,801,885 681,067,000 2026 744,801,885 52,136,132 464,149 797,402,165 711,715,015 2027 797,402,165 55,818,152 464,149 853,684,466 743,742,191 2028 853,684,466 59,757,913 464,149 913,906,528 777,210,589 2029 913,906,528 63,973,457 464,149 978,344,134 812,185,066 2030 978,344,134 68,484,089 464,149 1,047,292,372 848,733,394 2031 1,047,292,372 73,310,466 464,149 1,121,066,987 886,926,397 2032 1,121,066,987 78,474,689 464,149 1,200,005,825 926,838,085 2033 1,200,005,825 84,000,408 464,149 1,284,470,382 968,545,798 2034 1, 284,470,382 89,912,927 464,149 1,3 74,84 7,458 1,012,130,359 2035 1,374,847,458 96,239,322 464,149 1,471,550,929 1,057,676,225 2036 1,471,550,929 103,008,565 464,149 1,575,023,643 1,105,271,656 2037 1,575,023,643 110,251,655 464,149 1,685, 739,447 1,155,008,880 December 2017 4

Attachment 2 Schedule of the Annual Amounts Remaining to be Collected Alabama Power Company Farley Nuclear Plant Unit 2 Minimum Beginning Fund Fund Ending Fund Decommissioning Year Balance Fund Earnings Contributions Balance Fund Estimate 2016 388,100,905 458,293,000 2017 388,100,905 27,167,063 402,004 415,669,972 478,916,185 2018 415,669,972 29,096,898 402,004 445,168,874 500,467,413 2019 445,168,874 31,161,821 402,004 476,732,700 522,988,447 2020 476,732,700 33,371,289 402,004 510,505,993 546,522,927 2021 510,505,993 35,735,419 402,004 546,643,416 571,116,459 2022 546,643,416 38,265,039 402,004 585,310,459 596,816,699 2023 585,310,459 40,971,732 402,004 626,684,195 623,673,451 2024 626,684,195 43,867,894 402,004 670,954,093 651,738,756 2025 670,954,093 46,966,787 402,004 718,322,884 681,067,000 2026 718,322,884 50,282,602 402,004 769,007,489 711,715,015 2027 769,007,489 53,830,524 402,004 823,240,018 743,742,191 2028 823,240,018 57,626,801 402,004 881,268,823 777,210,589 2029 881,268,823 61,688,818 402,004 943,359,644 812,185,066 2030 943,359,644 66,035,175 402,004 1,009,796,824 848,733,394 2031 1,009,796,824 70,685,778 402,004 1,080,884,605 886,926,397 2032 1,080,884,605 75,661,922 402,004 1,156,948,532 926,838,085 2033 1,156,948,532 80,986,397 402,004 1,238,336,933 968,545,798 2034 1,238,336,933 86,683,585 402,004 1,325,422,522 1,012,130,359 2035 1,325,422,522 92,779,577 402,004 1,418,604,103 1,057,676,225 2036 1,418,604,103 99,302,287 402,004 1,518,308,394 1,105,271,656 2037 1,518,308,394 106,281,588 402,004 1,624,991,985 1,155,008,880 2038 1,624,991,985 113,749,439 402,004 1,739,143,428 1,206,984,280 2039 1,739,143,428 121,740,040 402,004 1,861,285,472 1,261,298,572 2040 1,861,285,472 130,289,983 402,004 1,991,977,459 1,318,057,008 2041 1,991,977,459 139,438,422 0 2,131,415,883 1,377,369,573 December 2017 5

Attachment 3 Material Changes to Trust Agreement March 2015 Moved funds for Large Cap Growth to Northern Trust from CastleArk March 2015 Diversified fixed income investments by adding catastrophe bond fund manager StoneRidge April2015 Added Azalea Capital Fund IV as an Alternative Investment May 2015 Moved funds for Mid Cap Value Equities to MFS from Fisher Investments June 2015 Moved funds for International Equities to lnvesco and EuroPac from Boston Co.

July 2015 Added Portfolio Advisors Private Equity Fund VIII as an Alternative Investment December 2015 Moved funds for Mid Cap Growth to Eagle Investment Management from Goldman Sachs April 2016 Moved multiple equity and fixed income investments within the TOLl from active managers to index funds December 2017 6

Edwin I. Hatch Nuclear Plant, Units 1 and 2 NRC Formula for Minimum Decommissioning Estimate (MOE)

$104 million + 9,000(P) = MOE for a Boiling Water Reactor (BWR) Plant< 3,400MWt Where: P = MWt reactor rating Plant Hatch = 2,804 MWt MOE expressed in 1986 Dollars (to be escalated)

Escalation of NRC Formula for MOE Estimated Decommissioning Cost in Year XX= MOE X (.65L + .13E + .22B)

Where: "L" is the Labor factor. The Labor factor is to be obtained by data provided by the U.S.

Department of Labor- Bureau of Labor Statistics. Specifically, the appropriate regional data from the table entitled "Employment Cost Index- Private Industry Workers",

subtitled "Total Compensation" is to be used. In Vogtle's case, data from the South Region is to be used.

"E" is the Energy factor. The energy factor is to be obtained from the two component formula listed below specifically weighted for BWR plants:

.54P + .46F = E (Energy Factor)

Where: "P" is the component for electric power and "F" is the component for fuel oil.

Both "P" and "F" can be found in "Producer Price Indices", published by the U.S.

Department of Labor- Bureau of Labor Statistics. "P" is to be obtained from the Industrial Electric Power Index and "F" is to be obtained from the Light Fuel Oils Index.

"B" is the Waste Burial Factor. The Waste Burial factor is to be obtained from NRC report NUREG-1307, "Report on Waste Burial Charge" or its updates.

Hatch's MOE and Escalation MOE= $104 million+ 9,000(P)

$104 million + 25.2 million = $129.2 million (1986 Dollars)

Hatch Escalation of MOE= $129.2 million X (.65L + .13E + .22B)

December 2017 1

Edwin I. Hatch Nuclear Plant, Units 1 and 2 2017 Decommissioning Fund Status Report December 2017 Response to Request for Additional Information The following table represents the indexes and MDE calculation used in the March 2017 submittal and the December 2017 re-submittal:

March 2017 December 2017 Calculation Submittal Labor Factor Labor Factor 19861ndex 50.6 2005 lndex3 1.98 12/2015 Index Used 1 124.6 12/2016 Index Used 2 126.2 Labor ESGalation 2.462 Labor Escalation 2.499 Energ)l Factor Energ)l Factor Industrial Electric Industrial Electric Power Power 19861ndex 114.2 19861ndex 114.2 12/2015 Index Used 1 214.8 12/2016 Index Used 2 211.7 Escalation 1.881 Escalation 1.854 Fuel Oil Fuel Oil 19861ndex 82.0 19861ndex 82.0 12/2015 Index Used 1 131.1 12/2016 Index Used 2 153.3 Escalation 1.599 Escalation 1.870 Energy Formula .54(1.881) + .46(1.599) Energy Formula .54(1.854) + .46(1. 870) 1.016 + .735 1.001 + .860 Total Energy Escalation 1.751 Total Energy Escalation 1.861:

Waste Burial Factor Waste Burial Factor Generators loeated in Combination of the unaffiliated states Compact Affiliated and 12.111 compaGt and those 13.132 Non-Compact South located in compact-Carolina affiliated states having no disposal faeility MOE Calculation MOE Calculation Adjustment Factor .65(2 .462) + .13(1.751) Adjustment Factor .65(2 .499) + .13(1.861)

+ .22(12.111) + .22(13 .132) 1.6003 + .2276 + 2.664 1.624 + .242 + 2.889 4.492 (Rounded) 4.755 (Rounded)

Escalated Cost Formula $129.2 million X 4.492 Escalated Cost Formula $129.2 million X 4.755 March 2017 MOE $580.6 million4 December 2017 MOE $614.5 million 1 Used December 2015 index numbers due to December 2016 numbers not being finalized at the time the calculation was performed 2 Used December 2016 index values 3 Updated labor index to reflect 2005 as base year per NUREG-1307 4 SNC submitted $582.0 million in March 2017 submittal. See footnote 1 on page 3.

December 2017 2

Edwin I. Hatch Nuclear Plant, Units 1 and 2 2017 Decommissioning Fund Status Report December 2017 Response to Request for Additional Information The following table represents the MOE Based on Ownership%:

Co-Owner March 2017 Submittal December 2017 Submittal Georgia Power Hatch Unit 1 $290.8 million $307.9 million Oglethorpe Hatch Unit 1 $174.2 million $184.3 million MEAG Hatch Unit 1 $102.8 million $108.8 million Dalton Hatch Unit 1 $12.8 million 1 $13.5 million Hatch Unit 1 Total $580.6 million $614.5 million Georgia Power Hatch Unit 2 $290.8 million $307.9 million Oglethorpe Hatch Unit 2 $174.2 million $184.3 million MEAG Hatch Unit 2 $102.8 million $108.8 million Dalton Hatch Unit 2 $12.8 million 1 $13.5 million Hatch Unit 2 Total $580.6 million $614.5 million 1

SNC mistakenly inserted the Dalton March 2016 MOE annual calculation ($14.2M) instead of the March 2017 MOE ($12.8M) in the 2017 DFS Report.

December 2017 3

Edwin I. Hatch Nuclear Plant Georgia Power Company Ownership Percentage - 50.1%

10 CFR 50.75(f)(1) Requirement Unit 1 Unit 2 1 The NRC minimum decommissioning estimate,

$307,884,000 2 $307,884,000 2 pursuant to 10 CFR 50.75(b) and (c). 1 2 The amount accumulated at the end of the $256,846,668 3 $237,524 ,9363 calendar year preceding the date of the report for items included in 10 CFR 50.75(b) and (c).

3 A schedule of the annual amounts remaining to be See Schedule in See Schedule in collected; for items in 10 CFR 50.75(b) and (c). Attachment 1 Attachment 1 4 The assumptions used regarding:

(a) rates of escalation in decommissioning 2.49% 2.49%

costs; (b) rates of earnings on decommissioning 4.49% 4.49%

funds; 2.00% 2.00%

(c) real rate of return; and (d) rates of other factors used in funding projections. None None 5 Any contracts upon which the licensee is relying None None pursuant to 10 CFR 50.75(e)(1)(v).

6 Any modifications to a licensee's current method No modifications since the No modifications since the of providing financial assurance occurring since last report. Funding is to an last report. Funding is to the last submitted report. external sinking fund with the an external sinking fund sources of funds from with the sources of funds traditional cost of service from traditional cost of ratemaking as ordered by the service ratemaking as GPSC. ordered by the GPSC.

7 Any material changes to trust agreements. None None NOTES:

1 The NRC formulas in section 10 CFR 50.75(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 permit: (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 amount is based on NUREG-1307, Rev. 16, for generators located in the unaffiliated states and those located in compact-affiliated states having no disposal facility and the December 2016 BLS data for labor and energy.

3 This amount represents the December 31, 2016 balance of funder in the external trust designated for license termination and does not include funds identified and held in subaccounts within the external trusts for spent fuel management and decommissioning of spent fuel storage facilities ($14,373, 155) for Unit 1 and

($21, 145,391) for Unit 2, which are funded through rates in accordance with the Georgia Public Service Commission Orders.

December 2017 4

Attachment 1 GEORGIA POWER COMPANY GEORGIA POWER COMPANY NUCLEAR DECOMMISSIONING NUCLEAR DECOMMISSIONING Based on 12131/2016 Fund Balances Based on 12/31/2016 Fund Balances (Amounts In Thousands) (Amounts In Thousands)

HATCH1 HAICH2 BEG OF Adjusted END OF BEG OF Adjusted END OF YEAR FUND FUND Annual YEAR YEAR FUND FUND Annual YEAR YEAR FUND BAL EARNINGS CONTRIB Expend FUNDBAL YEAR FUND BAL EARNINGS OONTRIS ExDend. FUND BJ!

2017 2018

$ 256,847 $

268,379 11,532 12,050 - -

$ 268,379 280429 2017 2018

$ 237,6261 $

248,190 10,866 11,144 .

• 1$ ~19(

• I "~Q 2019 280,429 12,591 - - 293,021 2019  ?SA.~~ _11,844

• I ZZO 2020 293,021 13,157 - - 306177 2020 270,978 12,167 2021 306,177 13,747 - - 319,925 2021 _283,H4 -12,713 2022 319,925 14,365 - - 334289 2022 2A!i.858 13,284 2023 334,289 15,010 349299 2023 309,142 13,880

• I

!1~~ - 1'1:2!:1 2024 349,299 15,684 - 384,982 2024 323.022 14,604

.

• I 337,626 2025 384,982 16,388 - 381 370 2026 337,526 15, 15f

.

• I 352,881 2026 381,370 17,124 - - 398493 2026 352,681 15,83f

• I 'HUI~1A 2027 398,493 17,892 - - 416,386 2027 368,516 16,64E

• I ~,;oM~

2028 416,386 18,696 - - 435,082 2028 _17,28j

• I 402.382

IA."inB~

2029 435,082 19,535 - - 454,617 2029 402,352 18,066

• I 420,417 2030 454,617 20,412 - - 475,029 2030 18,877 420~17

• I .4~ ')QA 2031 475,029 21,329 - - 496,358 2031 4::1A?Q4 19,724

• I 459,018 2032 496,358 22,286 - - 518,644 2032 459,018 20,610 -

• I 479,628 2033 518,644 23,287 -

541,931 2033 479,628 -2f,535 --

• I 501,1~

2034 541,931 13,494 555,426 2034 501,1_~ 22,502

• I F\~ ARI 2035 F\"':1 AAA 23,513

• I 647,179 NRC Minimum 2038 _547,_1_l!l _24,56_1t

• I 571,7-41

$479,351 2037 571 ,747 25,671 -

• I 597,418 2038 597,41_8 14,876 -

• I 612,294 NRC Minimum

$528,908 December 2017 5

Edwin I. Hatch Nuclear Plant Oglethorpe Power Corporation Ownership Percentage - 30.0%

10 CFR 50.75(f)(1) Requirement Unit 1 Unit2 1 The NRC minimum decommissioning estimate, 2

$184,362,000 2 $184,362,000 pursuant to 10 CFR 50.75(b) and (c). 1 2 The amount accumulated at the end of the calendar year preceding the date of the report for

$135,392,810 $106,442,730 items included in 10 CFR 50.75(b) and (c).

3 A schedule of the annual amounts remaining to be See Schedule in See Schedule in collected; for items in 10 CFR 50.75(b) and (c). Attachment 1 Attachment 1 4 The assumptions used regarding:

(a) rates of escalation in decommissioning 2.49% 2.49%

costs; (b) rates of earnings on decommissioning 5.00% 5.00%

funds; 2.51% 2.51 %

(c) real rate of return; and (d) rates of other factors used in funding projections. None None 5 Any contracts upon which the licensee is relying None None pursuant to 10 CFR 50.75(e)(1 )(v).

6 Any modifications to a licensee's current method None None of providing financial assurance occurring since the last submitted report.

7 Any material changes to trust agreements. In May 2015 replaced the In May 2015 replaced the large cap equity manager large cap equity manager with another large cap equity with another large cap manager. In February 2017 equity manager. In

" replaced the small cap equity February 2017 replaced manager with a small/mid cap the small cap equity equity manager manager with a small/mid cap equity manager NOTES:

1 The NRC formulas in section 10 CFR 50.75(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 permit: (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 amount is based on NUREG-1307, Rev. 16, for generators located in the unaffiliated states and those located in compact-affiliated states having no disposal facility and the December 2016 BLS data for labor and energy.

December 2017 6

Attachment 1 Schedule of the Annual Amounts Remaining to be Collected Oglethorpe Power Corporation 2016 NRC MINIMUM Hatch 1 Hatch2 Earnings Race: 5 Eammg; Rate 5 Balance Balance Balance Balance Year Begin Year Earnings Contribution End Year Year Begin Year l:arnings Conmbut10n End Year

--*---*- ------ ---*-*-*------------- - *------- --------* -- ~ - --- - - - - - - - - -----*---

2016 125,941,229 6,297,061 0 135,392,810

• 2016 99,012,113 4,950,606 0 106,442,730 2017 135,392,810 6,769,641 0 142,162,451 2017 106,442,730 5,322,137 0 Ill ,764,867 2018 142,162,451 7,108,123 0 1tl9,270,573 2018 111,764,867 5,588,243 0 117,353,110 2019 149,270,573 7,463.529 0 156,734,102 2019 117,353,110 5,867,655 0 123,220,765 2020 156,73.J,102 7,836,705 0 164,570,807 2020 123,220,765 Ci,161,038 0 129,381,80-J 2021 164,570,807 8,228,540 0 172,799,3-17 2021 129,381,804 6,469,090 0 n:;,s5o,89+

2022 172,799,347 8,639,967 0 181,439,314 2022 135,850,89-J 6,792,545 0 142,643,438 2023 181,439,314 9,07!,966 0 190,511,280 1 2023 142,6H,438 7,132,172 0 149,775,6:0 2024 190,5\1,280 9,525,56-1 0 200,036,844 ~ i 2024 149,775,610 7,488,781 0 157,264,391 2025 200,036,844 10,001,842 0 210,038,686  : 2025 157,264,391 7,863,220 0 165,127,610 2026 210,038,686 10,501,934 0 220,540,621 2026 165,127,610 8,256,381 0 173,383,991 2027 220,540,62 I 11,027,031 0 231,567,652 2027 173,383,991 8,669,200 0 I 82,053, I91 2028 231,567,652 11,578,383 0 243,146,034

• 2028 182,053,191 9,102,660 0 191,155,850 2029 243,146,034 12,157,302 0 255,303,336 ~ . 2029 191,155,850 9,557,793 0 200,713,643 2030 255,303,336 12,765,167 0 268,068,503  :, - 2030 200,713,M3 10,035,682 0 210,749,325 2031 268,068,503 13,403,425 0 281,471,928 I 2031 210,749,325 10,537,466 0 221,286,791 2032 281,471,928 14,073,596 0 295,545,524 ) 2032 221,286,791 11,064,340 0 232,351,130 2033 295,545,524 14,777,276 0 31 0,322,801 . ' 2033 232,351,130 11,617,557 0 243,968,687 2034 310,322,80 l 15,516,140 0 325,838,9-Jl 2034 243,968,687 12,198,434 0 256,167,121 2035 256,167,121 12,808,356 0 268,975,477 NRC Minimum 2036 268,975,477 13,448,774 0 282,424,251

$287,037,268 2037 282,42-1,251 14,121,213 0 296,545,464 2038 296,545,464 14,827,273 0 3! 1.272,737 **

NRC Minimum

$316,711,811

• • When combining the trust balances for both units, there is an overall surplus of

$33M above the NRC minimum.

December 2017 7

Edwin I. Hatch Nuclear Plant Municipal Electric Authority of Georgia Ownership Percentage -17.7%

10 CFR 50.75(f)(1) Requirement Unit 1 Unit2 1 The NRC minimum decommissioning estimate, 2

$108,773,000 2 $108,773,000 pursuantto 10 CFR 50.75(b) and (c). 1 2 The amount accumulated at the end of the calendar year preceding the date of the report for items included in 10 CFR 50.75(b) and (c). $110,640,440 $110,172,122 3 A schedule of the annual amounts remaining to be See Schedule in See Schedule in collected; for items in 10 CFR 50.75(b) and (c). Attachment 1 Attachment 2 4 The assumptions used regarding :

(a) rates of escalation in decommissioning 2.49% 2.49%

costs; (b) rates of earnings on decommissioning 4.15% 4.15%

funds; 1.66% 1.66%

(c) real rate of return ; and None None (d) rates of other factors used in funding projections .

5 Any contracts upon which the licensee is relying MEAG Power Sales MEAG Power Sales pursuant to 10 CFR 50.75(e)(1)(v). Contracts Contracts 6 Any modifications to a licensee's current method None None of providing financial assurance occurring since the last submitted report.

7 Any material changes to trust agreements. None None NOTES:

1 The NRC formulas in section 10 CFR 50.75(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 permit: (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 amount is based on NUREG-1307, Rev. 16, for generators located in the unaffiliated states and those located in compact-affiliated states having no disposal facility and the December 2016 BLS data for labor and energy.

December 2017 8

Attachment 1 MEAGPOWER Decommissioning Funding Plan Nuclear Decommissioning Fund -Hatch 1 (Dollars in thousands)

Calendar Balance at Less: Balance at Year Beg. of Year Contributions (I) Eamin~s Fees End of Year (A) (B) (C) (D) (E) 2016 110,640 2017 110,640 4,589 (171) 115,058 2018 115,058 4,772 (178) 119,652 2019 119,652 4,963 (185) 124,430 2020 124,430 5,161 (192) 129,399 2021 129,399 5,367 (200) 134,566 2022 134,566 5,581 (208) 139,939 2023 139,939 5,804 (216) 145,528 2024 145,528 6,036 (224) 151,339 2025 151,339 6,277 (233) 157,383 2026 157,383 6,527 (242) 163,668 2027 163,668 6,788 (252) 170,204 2028 170,204 7,059 (262) 177,001 2029 177,001 7,341 (272) 184,070 2030 184,070 7,634 (283) 191,421 2031 191,421 7,939 (294) 199,066 2032 199,066 8,256 (306) 207,017 2033 207,017 8,586 (318) 215,285 2034 215,285 5,953 (220) 221,017 2035 2036 2037 NRC Minimum 2038 $169,351 2039 2040 2041 2042 2043 2044 2045 2046 2047 2048 2049 Total 114,633 (4,256)

Footnotes:

(I)- Based on the current funding levels and decommissioning forecast, the decommissioning contributions for Hatch Unit One are being suspended.

December 2017 9

Attachment 1 MEAG POWER Decommissioning Funding Plan Nuclear Decommissioning Fund- Hatch 2 (Dollars ill thousa11ds)

Calendar Balance at Less: Balance at Year Beg. of Year Contributions (I) Earnings Fees End ofYear (A) (B) (C) (D) (E) 2016 110, 172 2017 110, 172 4,569 (170) 114,571 2018 114,571 4,752 (177) 119, 146 2019 119, 146 4,942 (184) 123,904 2020 123,904 5,139 (191) 128,851 2021 128,851 5,344 (199) 133,997 2022 133,997 5,558 (207) 139,348 2023 139,348 5,779 (215) 144,912 2024 144,912 6,010 (223) 150,699 2025 150,699 6,250 (232) 156,717 2026 156,717 6,500 (241) 162,976 2027 162,976 6,759 (251) 169,484 2028 169,484 7,029 (261) 176,253 2029 176,253 7,310 (271) 183,292 2030 183,292 7,602 (282) 190,612 2031 190,612 7,906 (293) 198,225 2032 198,225 8,221 (305) 206, 141 2033 206,141 8,550 (317) 214,374 2034 214,374 8,891 (329) 222,936 2035 222,936 9,246 (342) 231,840 2036 231,840 9,616 (358) 241,098 2037 241,098 10,000 (373) 250,725 2038 250,725 5,199 (194) 255,730 2039 2040 NRC Minimum 2041 $186,859 2042 2043 2044 2045 2046 2047 2048 2049 Total 151 , 173 (5,614)

Footnotes:

(I)- Based on the current funding levels and decommissioning forecast, the decommissioning contributions for Hatch Unit Two are being suspended.

December 2017 10

Edwin I. Hatch Nuclear Plant Dalton Utilities Ownership Percentage - 2.2%

10 CFR 50.75(f)(1) Requirement Unit 1 Unit 2 1 The NRC minimum decommissioning estimate, 2

$13,520,000 2 $13,520,000 pursuant to 10 CFR 50.75(b) and (c). 1 2 The amount accumulated at the end of the calendar year preceding the date of the report for items included in 10 CFR 50.75(b) and (c). $19,694,062 $19,577 ,284 3 A schedule of the annual amounts remaining to be See Schedule in See Schedule in collected; for items in 10 CFR 50.75(b) and (c). Attachment 1 Attachment 1 4 The assumptions used regarding :

(a) rates of escalation in decommissioning 2.49% 2.49%

costs; (b) rates of earnings on decommissioning funds; 2.269% 2.269%

(0.221%) (0.221%)

(c) real rate of return; and None None (d) rates of other factors used in funding projections.

5 Any contracts upon which the licensee is relying None None pursuant to 10 CFR 50.75(e)(1)(v).

6 Any modifications to a licensee's current method None None of providing financial assurance occurring since the last submitted report.

7 Any material changes to trust agreements. None None NOTES:

1 The NRC formulas in section 10 CFR 50.75(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 permit: (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 amount is based on NUREG-1307, Rev. 16, for generators located in the unaffiliated states and those located in compact-affiliated states having no disposal facility and the December 2016 BLS data for labor and energy.

December 2017 11

Attachment I Schedule of the Annual Amounts Remaining to be Collected Dalton Utilities 2016NRCMINIMUM Hatch I I latch2 Earnings Rate 2.269 Earnings Rate 2.269 Balance Balance Balance Balance Year Beginning of Year Earnings Contribution EndofYear Year Beginning of Year Earnings Contribution EndofYear 2016 19.257, I 18 436,944 0 19.694,062 2016 19, 142.931 434,353 0 19,577,284 2017 19,694,062 446,858 0 20,140,920 2017 19,577,284 444,209 0 20,021,493 2018 20,140,920 456,997 0 20,597.918 2018 20.021.493 454,288 0 20,475,780 2019 20,597,918 467,367 0 21.065,285 2019 20,475,780 464,595 0 20,940,376 2020 21,065.285 477,971 0 21.543.256 2020 20,940,376 475,137 0 21.415,513 2021 21.543.256 488.816 0 22.032.072 2021 21 ,415.513 485,918 0 21.901,431 2022 22,032,072 499,908 0 22.531 ,980 2022 21,901.431 496,943 0 22,398,374 2023 22.531,980 511 ,251 0 23,043,23 I 2023 22,398,374 508,219 0 22,906.593 2024 23.043.231 522,851 0 23.566.082 2024 22,906,593 519,751 0 23,426.344 2025 23,566,082 534.714 0 24.100,796 2025 23.426,344 531.544 0 23,957.888 2026 24,100.796 546,847 0 24.647.643 2026 23.957,888 543.604 0 24.501.492 2027 24,647,643 559,255 0 25,206.898 2027 24.501.492 555,939 0 25,057.431 2028 25.206,898 571.945 0 25.778,843 2028 25,057,431 568.553 0 25,625,984 2029 25.778.843 584,922 0 26.363.764 2029 25,625.984 581.454 0 26,207,438 2030 26,363.764 598.194 0 26.961 ,958 2030 26,207,438 594,647 0 26,802.085 2031 26.961.958 611.767 0 27.573.725 2031 26,802.085 608.139 0 27,410,224 2032 27.573.725 625.648 0 28, 199,373 2032 27.410.224 621 ,938 0 28,032.162 2033 28.199.373 639,844 0 28.839,217 2033 28,032, 162 636.050 0 28,668,212 2034 28.839.217 654,362 0 29.493,579 2034 28.668,212 650,482 0 29,318,693 2035 29.318.693 665,241 0 29,983,934 NRC Minimum 2036 29,983,934 680,335 0 30.664.270 2037 30.664.270 695.772 0 31.360,042

$21,049,586 2038 31.360.042 711559 0 32,071.602 NRC Minimum

$23,225,739 December 2017 12

Vogtle Electric Generating Plant, Units 1 and 2 NRC Formula for Minimum Decommissioning Estimate (MOE)

$105 million = MOE for a Pressurized Water Reactor (PWR) Plant> 3,400MWt Where: Plant Vogtle = 3,625 MWt MOE expressed in 1986 Dollars (to be escalated)

Escalation of NRC Formula for MOE Estimated Decommissioning Cost in Year XX= MOE X (.65L + .13E + .22B)

Where: "L" is the Labor factor. The Labor factor is to be obtained by data provided by the U.S.

Department of Labor- Bureau of Labor Statistics. Specifically, the appropriate regional data from the table entitled "Employment Cost Index- Private Industry Workers",

subtitled "Total Compensation" is to be used. In Vogtle's case, data from the South Region is to be used.

"E" is the Enerav factor. The energy factor is to be obtained from the two component formula listed below specifically weighted for PWR plants:

.SSP+ .42F = E (Energy Factor)

Where: "P" is the component for electric power and "F" is the component for fuel oil.

Both "P" and "F" can be found in "Producer Price Indices", published by the U.S.

Department of Labor- Bureau of Labor Statistics. "P" is to be obtained from the Industrial Electric Power Index and "F" is to be obtained from the Light Fuel Oils Index.

"8" is the Waste Burial Factor. The Waste Burial factor is to be obtained from NRC report NUREG-1307, "Report on Waste Burial Charge" or its updates.

Vogtle's MOE and Escalation MOE= $105 million

$105 million = $105 million (1986 Dollars)

Vogtle Escalation of MOE= $105 million X (.65L + .13E + .22B)

December 2017 1

Vogtle Electric Generating Plant, Units 1 and 2 2017 Decommissioning Fund Status Report December 2017 Response to Request for Additional Information The following table represents the indexes and MOE calculation used in the March 2017 submittal and the December 2017 re-submittal :

March 2017 Submittal December 2017 Submittal labor Factor labor Factor 19861ndex 50.6 20051ndex3 1.98 12/20151ndex Used 1 124.6 12/2016 Index Used 2 126.2 Labor Escalation 2.462 Labor Escalation 2.499 Energy Factor Energ)£ Factor Industrial Electric Industrial Electric Power Power 19861ndex 114.2 19861ndex 114.2 12/20151ndex Used 1 214.8 12/2016 Index Used 2 211.7 Escalation 1.881 Escalation 1.854 Fuel Oil Fuel Oil 19861ndex 82.0 19861ndex 82.0 12/2015 Index Used1 131.1 12/2016 Index Used2 153.3 Escalation 1.599 Escalation 1.870 Energy Formula .58(1.881) + .42(1.599) Energy Formula .58(1.854) + .42(1.870) 1.091 + .671 1.075 + .785 Total Energy Escalation 1.762 Total Energy Escalation 1.860 Waste Burial Factor Waste Burial Factor Generators located in Combination of the unaffiliated states Compact Affiliated anq 10.971 compact and those 12.471 Non-Compact South loaated in compact-Carolina affiliated states having no disposal facility MOE Calculation MOE Calculation Adjustment Factor .65(2.462) + .13(1.762) Adjustment Factor .65(2.499) + .13(1.860)

+ .22(10.971) + .22(12.471) 1.6003 + .2290 + 2.413 1.624 + .242 + 2.743 4.243 (Rounded) 4.610 (Rounded)

Escalated Cost Formula $105.0 million X 4.243 Escalated Cost Formula $105 million X 4.610 March 2017 MOE $445.5 million December 2017 MOE $484.0 million 1 Used December 2015 index numbers due to December 2016 numbers not being finalized at the time the calculation was performed 2 Used December 2016 index values 3 Updated labor index to reflect 2005 as base year per NUREG-1307 December 2017 2

Vogtle Electric Generating Plant, Units 1 and 2 2017 Decommissioning Fund Status Report December 2017 Response to Request for Additional Information The following table represents the MDE Based on Ownership%:

Co-Owner March 2017 Submittal December 2017 Submittal Georgia Power Vogtle Unit 1 $203 .6 million $221.2 million Oglethorpe Vogtle Unit 1 $133 .7 million $145 .2 million MEAG Vogtle Unit 1 $101.1 million $109.9 million Dalton Vogtle Unit 1 $7.1 million $7.7 million Vogtle Unit 1 Total $445.5 million $484.0 million Georgia Power Vogtle Unit 2 $203.6 million $221.2 million Oglethorpe Vogtle Unit 2 $133.7 million $145 .2 million MEAG Vogtle Unit 2 $101.1 million $109.9 million Dalton Vogtle Unit 2 $7.1 million $7.7 million Vogtle Unit 2 Total $445.5 million $484.0 million December 2017 3

Vogtle Electric Generating Plant Georgia Power Company Ownership Percentage- 45.7%

10 CFR 50.75(f)(1) Requirement Unit 1 Unit2 1 The NRC minimum decommissioning estimate,

$221 '195,000 2 $221,195,000 2 pursuant to 10 CFR 50.75(b) and (c). 1 2 The amount accumulated at the end of the $127,774,550 3 $137,930,256 3 calendar year preceding the date of the report for items included in 10 CFR 50.75(b) and (c).

3 A schedule of the annual amounts remaining to be See Schedule in See Schedule in collected; for items in 10 CFR 50.75(b) and (c). Attachment 1 Attachment 1 4 The assumptions used regarding :

(a) rates of escalation in decommissioning 2.49% 2.49%

costs; (b) rates of earnings on decommissioning 4.49% 4.49%

funds ;

2.00% 2.00%

(c) real rate of return; and (d) rates of other factors used in funding projections. None None 5 Any contracts upon which the licensee is relying None None pursuant to 10 CFR 50.75(e)(1)(v).

6 Any modifications to a licensee's current method No modifications since the No modifications since the of providing financial assurance occurring since last report. Funding is to an last report. Fund ing is to the last submitted report. external sinking fund with the an external sinking fund sources of funds from with the sources of funds traditional cost of service from traditional cost of ratemaking as ordered by the service ratemaking as GPSC. ordered by the GPSC.

7 Any material changes to trust agreements. None None NOTES:

1 The NRC formulas in section 10 CFR 50.75(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 penn it: (1) release of the property for unrestricted use and tennination of the license; or (2) release of the property under restricted conditions and tennination 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 amount is based on NUREG-1307, Rev. 16, for generators located in the unaffiliated states and those located in compact-affiliated states having no disposal facility and the December 2016 BLS data for labor and energy.

3 This amount represents the December 31, 2016 balance of funds in the external trust designated for license tennination and does not include funds identified and held in subaccounts within the external trusts for spent fuel management and decommissioning of spent fuel storage facilities of $4,264,153 for Unit 1 and $9,641,516 for Unit 2, which are funded through rates in accordance with the Georgia Public Service Commission Orders.

December 2017 4

Attachment 1 GEORGIA POWER COMPANY GEORGIA POWER COMPANY NUCLEAR DECOMMISSIONING NUCLEAR DECOMMISSIONING Based on 12131/2016 Fund Balances Based on 12131/2016 Fund Balances (Amounts In Thousands) (Amounts In Thouaanda)

VOGTLE1 VOcrtLE2 BEG OF Adjusted END OF BEGOF . Adjusted END OF YEAR FUND FUND Annual YEAR YEAR FUND FUND Annual YEAR FUND BAL EARNINGS CONTAIB Expend FUNDBAL FUND BAL EARNINGS CONTRIB Expend FUNDBAL 2017 $ 127,n5 $ 5,755 $ 495 - $ 134,024 2017 $ 137,930 $ 6,193 . . -

144123 2018 134,024 6,035 495 - 140,555 2018 144,123 6,471 . . 160594 2019 140,555 6,329 495 - 147,378 2019 150,594 6,762 . . 157356 2020 147,378 6,635 495 - 154,508 2020 157 356 7065 . . 164 421 2021 154,508 6,955 495 - 161,959 2021 164 421 7383 . . 171 804 2022 161,959 7,290 495 - 169,743 2022 171,804 7714 . . 179 618 2023 169,743 7,639 495 - 1n,8n 2023 179,518 8,060 . . 187 678 1n,8n - . .

2024 8,004 495 186,3n 2024 187,578 8422

. 196 001 2025 186,3n 8,386 495 195,258 2025 196,001 8800 204801 2026 195,258 8,785 495 - 204,538 2026 204801 9196 . 213997 2027 204,538 9,201 495 - 214,234 2027 213,997 9608 . . 223606 2028 214,234 9,637 495 - 224,366 2028 223,605 10040 . . 233646 2029 2030 224,366 234,953 10,092 10,567 495 495 -

234,953 246,015 2029 2030 233 645 244136 10,491 10,962 . . 244136 256 097 2031 246,015 11,064 495 257574 2031 256 097 11454

. . 268 561 2032 257,574 11,583 495 269,651 2032 266 551 11 968 278 519 2033 269,651 12,125 495 - 282,271 2033 278,619 12506 . 291 026 2034 282,271 12,692 495 295,458 2034 291,025 13067

. . 304092 2035 2036 295,458 309,237 13,284 13,902 495 495 -

309237 323 634 2036 2036 304092 317745 13654 14267 . . 317 746 332012 2037 323,634 14,549 495 338 678 2037 332 012 14907

. . 348920 2038 338,678 15,224 495 354 398 2038 346 920 15 577

. . 382496 2039 354,398 15930 495 370 823 2039 362496 16 278

. . 37sn2 2040 2041 370,823 387,985 16,668 17,438 495 495 -

387 985 405 919 2040 2041 31sn2 395 779 17007 11no . . 396ne 413 550 2042 405,919 18,243 495 - 424657 2042 413550 18568 . . 432118 2043 424,657 19,085 495 - 444,237 2043 432,118 19402 . . 461 620 2044 444,237 19,964 495 - 464,696 2044 451,520 20273 . . 471 794 2045 464,696 20,883 495 - 486,074 2045 471,794 21184 . . 4929n 2046 486,074 21,842 495 - 508,411 2048 492,9n 22,135 . . 616112 2047 508,411 12,659 - - 521,070 2047 515,112 23,129 . . 638240 2048 538 240 24167 . . 682407 2049 562,407 14,004 . . QI6,411 NRC Minimum

$474,135 NRC Minimum

$498,040 December 2017 5

Vogtle Electric Generating Plant Oglethorpe Power Corporation Ownership Percentage - 30.0%

10 CFR 50.75(f)(1) Requirement Unit 1 Unit2 1 The NRC minimum decommissioning estimate,

$145,204,000 2 $145,204,000 2 pursuant to 10 CFR 50.75(b) and (c). 1 2 The amount accumulated at the end of the calendar year preceding the date of the report for items included in 10 CFR 50.75(b) and (c). $78 ,987,518 $71,549,263 3 A schedule of the annual amounts remaining to be See Schedule in See Schedule in collected; for items in 10 CFR 50.75(b) and (c). Attachment 1 Attachment 1 4 The assumptions used regarding :

(a) rates of escalation in decommissioning 2.49% 2.49%

costs ;

(b) rates of earnings on decommissioning 5.00% 5.00%

funds ;

2.51% 2.51%

(c) real rate of return ; and (d) rates of other factors used in funding projections. None None 5 Any contracts upon which the licensee is relying None None pursuant to 10 CFR 50.75(e)(1)(v).

6 Any modifications to a licensee's current method None None of providing financial assurance occurring since the last submitted report.

7 Any material changes to trust agreements. In May 2015 replaced the In May 2015 replaced the large cap equity manager large cap equity manager with another large cap equity with another large cap manager. In February 2017 equity manager. In replaced the small cap equity February 2017 replaced manager with a small/mid cap the small cap equity equity manager manager with a small/mid cap equity manager NOTES:

1 The NRC formulas in section 10 CFR 50.75(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 permit: (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 amount is based on NUREG-1307, Rev. 16, for generators located in the unaffiliated states and those located in compact-affiliated states having no disposal facility and the December 2016 BLS data for labor and energy.

December 2017 6

Attachment 1 Schedule of the Annual Amounts Remaining to be Collected Oglethorpe Power Corporation 2016 NRC MINIMUM Vogtle 1 Vogtle 2 Earnings Rate* 5 Earning$ Rat<:: 5 Balance Balance Balance Balance Year Begin Year Earnings Contribution End Year f

Yl':lr Begin Year 66,554,510 Jo:arnings

--~*-*---------

3,3'27,726 Contribution I :nd Yt"Jr 0 71,549,263 2016 73,473,511 3,673,676 0 78,987,518 2016 2017 78,987,518 3,949,376 0 82,936,894 2017 71,549,263 3,577,463 0 75,126,726 2018 !l2,936,89*1 4,146,845 0 87,083,739 2018 75,126,726 3,756,336 0 78,883,062 2019 87,083,739 4,354,187 0 91,437,926 2019 78,883,062 3,944,153 0 82,827,216 2020 91,437,926 4,571,896 0 96,009,822 2020 82,827,216 4,141,361 0 86,968,576 2021 96,009,822 4,800,491 0 100,810,313 . 2021 86,968,576 4,348,429 0 91,31 7,005 2022 100,810,313 5,040,516 0 105,850,829 2022 91,317,005 4,565,850 0 95,882,855 2023 105,850,829 5,292,541 0 111,143,370 2023 95,882,851 4,794,143 0 100,676,998 2024 l\1,143,370 5,557,168 0 116,700,538 2024 100,676,998 5,033,850 0 105,710,848 2025 1 16,700,538 5,835,027 0 122,535,565 2025 105,710,8 IS 5,285,542 0 110,996,391 2026 122,535,565 6,126,778 0 128,662,344 2026 110,996,391 5,549,820 0 116,546,210 2027 128,662,344 6,433,117 0 135,095,461 2027 116,5116,210 5,827,311 0 122,373,521 2028 135,095,46 I 6,754,773 0 141,850,234

• 2028 122,373,521 6,118,676 0 128,492,197 2029 141,850,234 7,092,512 0 148,942,746 2029 128:192,197 6,<124,61 0 0 134,916,806 2030 148,942,746 7,447,137 0 156,389,883 2mo 134,916,806 6,745,810 0 141,662,647 2031 156,389,883 7,819,494 0 2031 \tf1,662,647 7,083,132 0 148,745,779 164,209,~77 2032 164,209,3 77 8,210,469 0 172,419,846 2032 148,745,779 7,437,289 0 156,183,068 2033 172,419,8*16 8,620,992 0 181,040,8]8 2033 156,183,063 7,809,153 0 163,992,221 2034 181,040,838 9,052,042 0 190,092,880 2m4 163,992,221 8,199,611 0 172,191,832 2035 190,092,880 9,501,644 0 199,597,524 2035 172,191,832 8,609,592 0 180,801,424 2036 199,597,524 9,979,876 0 209,577,400 2036 180,801,424 9,040,071 0 189,841,495 2037 209,577,400 10,478,870 0 220,056,270 l 2037 189,841,495 9,492,075 0 199,333,570 2038 220,056,270 11,002,814 0 231,059,084 2038 199,333,570 9,966,679 0 209,300,249 2039 231,059,084 11,552,954 0 242,612,038 2039 209,100,249 10,465,012 0 219,765,261 2040 2041 242,612,038 254,742,640 12,130,602 12,737,132 0

0 2i4,742,640 267,479,772 .. ~

2040 2041 219,765,261 230,753,524 10,988,263 11,537,676

()

0 230,753,524 242,291,200 2042 267,479,772 13,373,989 0 280,853,760 2042 242,29 I ,200 12,114,560 0 254,405,760 2043 280,853,760 14,042,688 0 29<1,896,448 " 2043 254,405,760 12,720,288 0 267,126,048 2044 294,896,448 14,74*1,822 0 2044 267,126,048 13,356,302 0 280,482,351 2045 309,641,271 15,482,064 0 2045 280,482,351 14,024,118 0 294,506,468 2046 325,123,334 16,256,167 0 2046 21)4,506,468 14,725,323 0 309,231,792 2047 3*11,379,50 I 17,068,975 0 2047 309,231,792 15,461,590 0 324,693,381 2048 324,693,381 16,234,669 0 340,928,050 2049 3*10,928,050 17,046,403 - .~-,3~453 _

NRC Minimum

$311,246,780

\

NRC Minimum

< $326,939,846 December 2017 7

Vogtle Electric Generating Plant Municipal Electric Authority of Georgia Ownership Percentage - 22.7%

10 CFR 50.75(f)(1) Requirement Unit 1 Unit2 1 The NRC minimum decommissioning estimate,

$109,871,000 2 $109,871,000 2 pursuant to 10 CFR 50.75(b) and (c). 1 2 The amount accumulated at the end of the $111 ,947,589 $107,008,868 calendar year preceding the date of the report for items included in 10 CFR 50.75(b) and (c).

3 A schedule of the annual amounts remaining to be See Schedule in See Schedule in collected ; for items in 10 CFR 50.75(b) and (c). Attachment 1 Attachment 2 4 The assumptions used regarding:

(a) rates of escalation in decommissioning 2.49% 2.49%

costs; (b) rates of earnings on decommissioning 4.15% 4.15%

funds; (c) real rate of return ; and 1.66% 1.66%

(d) rates of other factors used in funding None None projections.

5 Any contracts upon which the licensee is relying MEAG Power Sales MEAG Power Sales pursuant to 10 CFR 50.75(e)(1)(v). Contracts Contracts 6 Any modifications to a licensee's current method None None of providing financial assurance occurring since the last submitted report.

7 Any material changes to trust agreements. None None NOTES:

1 The NRC formulas in section 10 CFR 50.75(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 permit: (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 amount is based on NUREG-1307, Rev. 16, for generators located in the unaffiliated states and those located in compact-affiliated states having no disposal facility and the December 2016 BLS data for labor and energy.

December 2017 8

Attachment 1 MEAGPOWER Decommissioning Funding Plan Nuclear Decommissioning Fund- Vogtle 1 (Dollars in Tflo11sands)

Calendar Balance at Less: Balance at Year Beg. ofYear Contributions (1) Earnin~s Fees End ofYear (A) (B) (C) (D) (E) 2016 111,948 2017 111,948 4,643 (173) 116,418 2018 116,418 4,828 (180) 121,066 2019 121,066 5,021 (187) 125,900 2020 125,900 5,222 (194) 130,928 2021 130,928 5,430 (202) 136,156 2022 136,156 5,647 (210) 141,593 2023 141,593 5,873 (218) 147,247 2024 147,247 6,107 (227) 153,128 2025 153,128 6,351 (236) 159,243 2026 159,243 6,605 (245) 165,602 2027 165,602 6,868 (255) 172,215 2028 172,215 7,143 (265) 179,093 2029 179,093 7,428 (275) 186,246 2030 186,246 7,725 (286) 193,684 2031 193,684 8,033 (298) 201,419 2032 201,419 8,354 (309) 209,463 2033 209,463 8,687 (322) 217,829 2034 217,829 9,034 (334) 226,529 2035 226,529 9,395 (348) 235,577 2036 235,577 9,771 (364) 244,983 2037 244,983 10,161 (379) 254,765 2038 254,765 10,566 (394) 264,938 2039 264,938 10,988 (409) 275,517 2040 275,517 11,427 (431) 286,513 2041 286,513 11,883 (448) 297,948 2042 297,948 12,357 (466) 309,839 2043 309,839 12,851 (484) 322,206 2044 322,206 13,363 (503) 335,066 2045 335,066 13,897 (523) 348,440 2046 348,440 14,452 (544) 362,348 2047 362,348 1,252 (47) 363,553 2048 2049 NRC Minimum Total 261,363 (9, 757) $235,510 Footnotes:

(I)- Based on the current funding levels and decommissioning forecast, the decommissioning contributions for Vogtle Unit One are being suspended.

December 2017 9

Attachment 1 MEAGPOWER Decommissioning Funding Plan Nuclear Decommissioning Fund- Vogtle 2 (Dollars ill Tllousa11ds)

Calendar Balance at Less: Balance at Year Beg. of Year Contributions (I) Earnings Fees End of Year (A) (B) (C) (D) (E) 2016 107,009 2017 107,009 4,438 (165) 111,282 2018 111,282 4,615 (172) 115,725 2019 115,725 4,800 (179) 120,346 2020 120,346 4,991 (186) 125,152 2021 125,152 5,191 (193) 130,149 2022 130,149 5,398 (201) 135,347 2023 135,347 5,613 (209) 140,751 2024 140,751 5,838 (217) 146,372 2025 146,372 6,071 (225) 152,217 2026 152,217 6,313 (234) 158,296 2027 158,296 6,565 (244) 164,618 2028 164,618 6,828 (253) 171,192 2029 171,192 7, 100 (263) 178,029 2030 178,029 7,384 (274) 185,139 2031 185,139 7,679 (285) 192,533 2032 192,533 7,985 (296) 200,223 2033 200,223 8,304 (308) 208,219 2034 208,219 8,636 (320) 216,535 2035 216,535 8,981 (332) 225,184 2036 225,184 9,340 (348) 234,175 2037 234,175 9,712 (362) 243,526 2038 243,526 10,100 (376) 253,250 2039 253,250 10,504 (391) 263,362 2040 263,362 10,923 (412) 273,873 2041 273,873 11,359 (428) 284,803 2042 284,803 11,812 (445) 296,170 2043 296,170 12,284 (463) 307,991 2044 307,991 12,774 (481) 320,284 2045 320,284 13,284 (500) 333,068 2046 333,068 13,814 (520) 346,362 2047 346,362 14,365 (540) 360,188 2048 360,188 14,939 (562) 374,565 2049 374,565 2,589 (101) 377,053 Total 280,529 (10,484)

NRC Minimum

$247,384 Footnotes:

(I)- Based on the current funding levels and decommissioning forecast, the decommissioning contributions for Vogtle Unit Two are being suspended.

December 2017 10

Vogtle Electric Generating Plant Dalton Utilities Ownership Percentage - 1.6%

10 CFR 50.75(f)(1) Requirement Unit 1 Unit2 1 The NRC minimum decommissioning estimate,

$7,744,000 2 $7,744,000 2 pursuant to 10 CFR 50.75(b) and (c) . 1 2 The amount accumulated at the end of the calendar year preceding the date of the report for

$10,577 ,080 $10,127,249 items included in 10 CFR 50.75(b) and (c).

3 A schedule of the annual amounts remaining to be See Schedule in See Schedule in collected; for items in 10 CFR 50.75(b) and (c). Attachment 1 Attachment 1 4 The assumptions used regarding:

(a) rates of escalation in decommissioning 2.49% 2.49%

costs; (b) rates of earnings on decommissioning 2.269% 2.269%

funds; (0.221 %) (0.221 %)

(c) real rate of return ; and (d) rates of other factors used in funding None None projections .

5 Any contracts upon which the licensee is relying None None pursuant to 10 CFR 50.75(e)(1)(v).

6 Any modifications to a licensee's current method None None of providing financial assurance occurring since the last submitted report.

7 Any material changes to trust agreements. None None NOTES:

1 The NRC formulas in section 10 CFR 50.75(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 penmit: (1) release of the property for unrestricted use and tenmination of the license; or (2) release of the property under restricted conditions and tenmination 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 fonmulas.

2 This amount is based on NUREG-1307, Rev. 16, for generators located in the unaffiliated states and those located in compact-affiliated states having no disposal facility and the December 2016 BLS data for labor and energy.

December 2017 11

Attachment I Schedule of the Annual Amounts Remaining to be Collected Dalton Utilities 2016 NRC Ml NIMUM Vogtle I Vogtle2 Earnings Rate 2.269 Earnings Rate 2 269 Balance Balance Balance 9897462 Balance Year BcginningofYcar Eamings Contribution EndofYear Year Beginning ofYear Earnings Contribution EndofYear 2016 10,342,411 234,669 0 10,577,080 2016 9,902.560 224,689 0 10,127.249 2017 10,577,080 239,994 0 10,817,074 2017 10.127,249 229,787 0 10,357.036 2018 10.817.074 245,439 0 I ~062,513 2018 10,357,036 235.001 0 10,592.037 2019 ll062.513 251.008 0 I L313,522 2019 10,592.037 240,333 0 10.832,371 2020 1~313,522 256,704 0 I L570,226 2020 10,832.371 245,786 0 I L078, 157 2021 11.570,226 262,528 0 I ~832.754 2021 I ].078,157 251.363 0 ll329.521 2022 I L832, 754 268.485 0 12,101.239 2022 11.329,521 257,067 0 I L586,587 2023 12, 101,239 274.577 0 12,375.816 2023 I ~586.587 262,900 0 11.849,487 2024 12,375,816 280,807 0 12,656.624 2024 lt849,487 268,865 0 12.118,352 2025 12.656.624 287,179 0 12.943,802 2025 12,118.352 274,965 0 12,393,317 2026 12.943.802 293.695 0 13.237,497 2026 12,393.317 281.204 0 12,674.522 2027 13,237.497 300,359 0 13,537,856 2027 12.674.522 287,585 0 12,962.107 2028 13,537,856 307,174 0 13,845.030 2028 12.962.107 294,110 0 13.256,217 2029 13.845.030 314.144 0 14, 159, 174 2029 13,256,217 300,784 0 13.557,000 2030 >>.159.174 321.272 0 IH80.445 2030 13,557.000 307.608 0 13.864.609 2031 14.480,445 328,561 0 J.t,809.007 2031 13.864.609 314,588 0 14.179.197 2032 14,809,007 336.016 0 15.145.023 2032 14,179.197 321.726 0 14.500.923 2033 15.145.023 343.641 0 15,488.664 2033 14.500,923 329,026 0 14.829.949 2034 15,488.664 351,438 0 15.840,101 2034 14,829,949 336,492 0 15.166,440 2035 15,840,101 359,412 0 16,199.513 2035 15,166.440 344.127 0 15,510,567 2036 16,199,513 367.567 0 16.567,080 2036 15,510.567 351.935 0 15,862,501 2037 16,567.080 375.907 0 16,942,987 2037 15.862.501 359,920 0 16.222.422 2038 16,942,987 384,436 0 17,327.424 2038 16,222,422 368,087 0 16.590.508 2039 17,327.424 393.159 0 17.720.583 2039 16,590,508 376,439 0 16,966.947 2040 17.720.583 402,080 0 18,122,663 2040 16,966,947 384,980 0 17.351,927 2041 18.122.663 411,203 0 18,533.866 2041 17,351,927 393.715 0 17.745,642 2042 18,533,866 420.533 0 18.954,400 2042 17,745,642 402.649 0 18,148,291 2043 18,954,400 430.075 0 19.384,475 2043 18.148.291 41 L785 0 18.560,076 2044 19,384,475 439.834 0 19.824,309 2044 18.560.076 421.128 0 18,981.204 2045 19,824,309 449.814 0 20,274,122 2045 18.981.204 430,684 0 19,411.887 2046 20,274,122 460.020 0 20,734.142 2046 19.411.887 440.456 0 19.852.343 2047 20.734.142 470.458 0 21 .204.600 2047 19,852.343 450.450 0 20,302.793 2048 20.302.793 460,670 0 20.763.463 2049 20,763,463 471.123 0 21.234.586 NRC Minimum

$16,599,371 NRC Minimum

$17,436,311 December 2017 12