ML20055H595

Certifies That Util Will Undertake Funding Accumulating Necessary Funds to Cover Estimated Costs of Decommissioning Unit 2,per 10CFR50.75.Info,including Duke Power Co Master Decommissioning Trust Agreement For... Encl

ML20055H595
Person / Time
Site:	Mcguire
Issue date:	07/24/1990
From:	Hauser D DUKE POWER CO.
To:	NRC OFFICE OF INFORMATION RESOURCES MANAGEMENT (IRM)
References
NUDOCS 9007270043
Download: ML20055H595 (2)

Text

y ,

ll; l i,..

lide Mrr Company l gogy,~pojj l'O }kw31189 Charlotte, NC28212 ~

qq w

l DUKEPOWER July 24,.1990 Document Control Desk U.S. Nuclear Regulatory Commission- ,

t Washington, D.C. 20555  !

RE: Decommissioning Financial Assurance Certification '

Report for Duke. Power. Company, McGuire Nuclear

' Station, Unit 2, NRC Operating License NPF-17 NRC Docket No. 50-370

Dear Sir or Madam:

The Nuclear Regulatery Commission's ("NRC") regulations require that, on or before July 26, 1990, all production or utilization '

facility licensees submit to the NRC "information in the form of a report as described in 10 C.F.R. Section.50.75 indicating how reasonable assurance will be provided that funds will be.  !

available to' decommission the facility."1/ The following j g

Decommissioning Financial Assurance Certification Report t

• j

(" Report") addresses the Commission's decommissioning 1 certification requirements applicable to Duke Power Company's McGuire Nuclear-Station, Unit 2 (NRC Docket No. 50-370).

Attached'to this letter are (1) Exhibit.A, which is'a photocopy  ;

l of Duke's executed Master Decommissioning Trust Agreement for.all J'

! its nuclear: stations including McGuire' Unit 2; (2) Exhibit B, Duke's Calculation of Minimum Assurance Amount; (3) Exhibit C, I g Dukel Calculation of the Amount to be Externally Funded;~and (4)

L

' Exhibit D which shows contributions to External Sinking Funds.

l Exhibits C and D are provided to the NRC for information

l. purposes.

McGuire Unit 2 is a PWR that has a capacity of greater than 3400  :

MWt, for which NRC operating license NPF-17 will. continue to be f L

'in effect on July 27, 1990. . Duke has prepared a site-specific j l

decommissioning cost. estimate for.McGuire Unit 2. Using the  ;

site-specific estimate, Duke will make periodic contributions to y an external trust fund which meets the criteria of 10 C.F.R.

Section 50.75(e)(1)(ii). Specifically, Duke Power will  !

. contribute to the external trust the entire amount of the cost p

estimated in the site-specific study for decommissioning the i L irradiated portion of the facility. The total cost for this b portion of the decommissioning process is estimated at L $144,091,000 (1990 dollars). The. total amount to be deposited, and the anticipated schedule of related expenditures, is shown on l _ f- Exhibit C.

1/ 10 C.F.R. Section 50.33(k)(2).

9007270043 900724 pM PDR ADOCK 05000370 I

PDC ll ( j 3

o

Q, -

,g4. . - .

g g

sc; .- .- -

N r Yl?

L N1 -Page 2-kJ The minimum certification amount set out in l' C.F.R. Section

'50.75(c)(1), as escalated pursuant to 10'C.F.k. Section 50.75 J (c)(2),11s. estimated at $137,340,000 (1990 dollars, except burial-which was based on the'most recent indices available), which is c 'less than'the site-specific cost estimate discussed above. 1 Accordinaly, pursuant to 10 C.F.R.:Section 50.75, Duke Power

< hereby certifies that it will be providing financial assurance for decommissioning in amounts greater than the decommissioning rule certification amount. Duke will make contr$butions to the

external funde in the manner shown in Exhibit D.

,1 -With respect to the commencement of contributions, Duke currently 1 l utilizes a depreciation allowance to provide reserves for j h decommissioning. Duke Power plans-to file in 1991 general rate

~

cases with the North Carolina Utilities Commission, the South Carolina Public Service Commission and the Federal Energy. D' Regulatory Commission which'will include a specific allowance for decommissioning funding using the external trust. Duke anticipates that orders from the Commissions permitting rate collection for contributions to the external fund as required by the NRC will be issued in late 1991. As noted, a' copy of the a' executed trust agreement is provided herewith as Exhibit A.

o v

Q In summary, this letter certifies that Duke-Power will undertake funding accumulating the necessary funds.to cover the estimated ,

hF costs of decommissioning McGuire Unit.2. If there are any. i questions, please contact' David L. Hsuser, Controller, 422 S.  !

y7 Church Street, Charlotte, North Carolina 28242, (704) 373-5963. }

Sin erely, j ffgy Afk& l David L. Hauser Controller i

Attachments ,

i cc: Mr. Darl Hood - w/o Attachments Robert S. Wood - w/o Attachments l

I