NG-20-0023, Decommissioning Funding Status Report

Decommissioning Funding Status Report

ML20086L916
Person / Time
Site:	Duane Arnold
Issue date:	03/26/2020
From:	Dean Curtland NextEra Energy Duane Arnold
To:	Document Control Desk, Office of Nuclear Reactor Regulation
References
NG-20-0023
Download: ML20086L916 (6)

Text

NEXTera ENERGY e DUANE ARNOLD r

NG-20-0023 March 26, 2020 10 CFR 50.75(f)(1) 10 CFR 50.82(a)(8)(5)

Nuclear Regulatory Commission Attn : Document Control Desk Washington, DC 20555-0001 Duane Arnold Energy Center Docket No. 50-331 Renewed Facility Operating License No DPR-49 Decommissioning Funding Status Report Pursuant to 10 CFR 50. 75(f)(1 ), enclosed is the Decommissioning Funding Status (DFS) Report for the Duane Arnold Energy Center (DAEC) . NextEra Energy Duane Arnold, LLC , Central Iowa Power Cooperative, and Corn Belt Power Cooperative own the DAEC. The report provides the status of decommissioning funding for all three owners.

This letter contains no new commitments and no revisions to existing commitments.

Should there be any questions, please contact Stephanie Castaneda at (561) 805-2556.

~dd~

Dean Curtland Site Director, Duane Arnold Energy Center NextEra Energy Duane Arnold, LLC Enclosure NextEra Energy Duane Arnold, LLC 3277 DAEC Road Palo, IA 52324

Enclosure 1 Decommissioning Funding Status Report 10 FR 50.75(f)(1)

Duane Arnold Energy Center 4 pages follow

Duane Arnold Energy Center NextEra Energy Duane Arnold, LLC (NEDA),

Central Iowa Power Cooperative (CIPCO),

Corn Belt Power Cooperative (Corn Belt)

Decommissioning Funding Status Report

1. Duane Arnold Energy Center has performed a site specific decommissioning cost study that has estimated license termination costs of $724,688,000 (2018 dollars) which is higher than the minimum decommissioning fund estimate pursuant to 10 CFR 50.75(b) and (c) of $617,688,089.

2. The amount accumulated at the end of the calendar year preceding the date of the report. (Trust fund balances are net of taxes)

Plant Owner(% Ownership) Total NEDA (70%) 454,453,798 CIPCO (20%) 74,883,106 Corn Belt (10%) 38,957,599 Total 568,294,503

3. On February 21, 2020, NEDA submitted an exemption request based upon a site-specific decommissioning cost estimate using the SAFSTOR decommissioning alternative. License termination funding assurance for NEDA is demonstrated through the cost estimate, year end 2019 fund balance, and cash flow provided in the exemption request. Attachment 1 provides a license termination Decommissioning Funding Plan, SAFSTOR Alternative for CIPCO and Corn Belt based on the cost estimate provided in the February 21, 2020 NEDA exemption request.

4. Assumptions used regarding escalation in decommissioning costs, rate of earnings on decommissioning funds and rates of other factors used in funding

. f ions.

pro1ec Plant Owner(% Ownership) Real Rate of Return NextEra (see note (c)) (70%) 2%

CIPCO (see note (d)) (20%) 4%

Corn Belt (see note (e)) (10%) 4%

Basis for Allowance:

(c) 10 CFR 50.75 allows licensees to assume up to a 2% real rate of return unless the licensee's rate-setting authority has specifically authorized a higher rate.

11 Page

Duane Arnold Energy Center NextEra Energy Duane Arnold, LLC (NextEra),

Central Iowa Power Cooperative (CIPCO),

Corn Belt Power Cooperative (Corn Belt)

Decommissioning Funding Status Report (d) Central Iowa Power Cooperative (CIPCO) is a public corporation incorporated under Chapter 499 Iowa Code (2009). CIPCO has the authority and is required to fix, establish, and collect adequate rates and other charges for electrical energy or services sold or furnished by it. CIPCO is accordingly authorized to establish its own rates and other charges through which it can recover its cost of service.

CIPCO is governed by a 13 member Board of Directors that are elected by the CIPCO members. The Board of Directors is the rate making authority for CIPCO.

CIPCO rates are not regulated by any state or federal authority. In a Board Resolution dated October 27, 2009, the CIPCO Board of Directors resolved that the rates and other charges for electrical energy services and the decommissioning fund be established assuming a real rate of return on the decommissioning fund of four percent.

(e) Corn Belt Power Cooperative is a public corporation incorporated under Chapter 499 Iowa Code (2009). Corn Belt has the authority and is required to fix, establish, and collect adequate rates and other charges for electrical energy or services sold or furnished by it. Corn Belt is governed by an 11 member Board of Directors who are elected by its members. The Corn Belt Board of Directors is accordingly authorized to establish its own rates and other charges through which it can recover its cost of service and is the rate making authority for the Cooperative. The Cooperative's rates are not regulated by any state or federal authority. In a Board Resolution dated May 2, 2014, the Corn Belt Board of Directors resolved that the rates and other charges for electrical energy services and the decommissioning fund be established assuming a real rate of return on the decommissioning fund of four percent.

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

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

7. Any material changes to trust agreements.

None 21Page

Attachment 1 Duane Arnold Energy Center Decommissioning Funding Plan 2020 Shutdown, SAFSTOR Alternative (Thousands of Dollars)

Basis Year 2018 Fund Balance as of 12/31/19: (Thousands of Dollars)

CIPCO 74,883 20% ownership Corn Belt 38,958 10% ownership Total Trust Fund Balance 113,841 2019 Escalation 1.8%

Annual Earnings - CIPCO 4.0%

Annual Earnings - Corn Belt 4.0%

A B c D E CIPCO Corn Belt Total Cost at Decommissioning Decommissioning 100% Trust Fund Balance Trust Fund Balance Escalated at escalated at4% escalated at4%

2018 Cost at 1.8% to 2019 minus 20% of minus 10% of Year 100% Dollars expenses expenses 2019 74,883 38,958 2020<1> $40,281 $41,006 69,677 36,415 2021 $43,735 $44522 63,560 33,420 2022 $15,949 $16,236 62,855 33,133 2023 $5, 110 $5,202 64,329 33,938 2024 $14,895 $15,163 63,870 33,779 2025 $5,604 $5,705 65,283 34,560 2026 $2,201 $2,240 67,447 35,718 2027 $1,827 $1,860 69,772 36,961 2028 $1,827 $1,860 72,191 38,253 2029 $1,827 $1,860 74,707 39,598 2030 $1,884 $1,918 77,312 40,990 2031 $1,770 $1,802 80,044 42,449 2032 $1,770 $1,802 82,885 43,967 2033 $1,770 $1,802 85,840 45,545 2034 $1,770 $1,802 88,913 47,187 2035 $1,770 $1,802 92,110 48,894 2036 $1,770 $1,802 95,434 50,670 2037 $1,770 $1,802 98,891 52,517 2038 $1,770 $1,802 102,486 54,437 2039 $1,770 $1,802 106,225 56,434 2040 $2,411 $2,455 109,983 58,446 2041 $1,770 $1,802 114,022 60,604 2042 $1,770 $1,802 118,223 62,848 2043 $1,770 $1,802 122,591 65,182 2044 $1,770 $1,802 127,135 67,609 2045 $1,770 $1,802 131,860 70,133 2046 $1,770 $1,802 136,774 72,758 2047 $1,770 $1,802 141,884 75,488 2048 $1,770 $1,802 147,199 78,328 2049 $1,770 $1,802 152,727 81,281

- -- - 770 $1,802 158 476 84,352 2051 $1,770 $1,802 164,454 87,546 2052 $1,770 $1,802 170,672 90,867 2053 $1,770 $1,802 177,139 94,322 2054 $2,055 $2,092 183,806 97,885 2055 $2,126 $2,164 190,725 101,584 2056 $1,770 $1,802 197,994 105,468 2057 $1,770 $1,802 205,553 109,506 2058 $1,770 $1,802 213,415 113,706 2059 $2,159 $2,198 221,512 118,035 2060 $3,077 $3,133 229,746 122,443 2061 $2,634 $2,681 238,400 127,072 2062 $2,634 $2,681 247,399 131,887 2063 $2,634 $2,681 256,759 136,895 2064 $2,634 $2,681 266,493 142,102 2065 $2,634 $2,681 276,617 147,518 2066 $2,634 $2,681 287,145 153,151 2067 $2 634 $2,681 298,095 159,009 2068 $2,681 309,483 165,101 2069 $2,634 $2,681 321,326 171,437 31Page

2070 $2,634 $2,681 333,643 178,026 2071 $2,634 $2,681 346,452 184,879 2072 $2,634 $2,681 359,774 192,006 2073 $15,440 $15,718 371,021 198,115 2074 $32,608 $33,195 379,223 202,720 2075 $78,197 $79,604 378,471 202,868 2076 $94,001 $95,693 374,472 201,414 2077 $118,359 $120,489 365,353 197,421 2078 $101,052 $102,871 359,392 195,031 2079 $57,385 $58,418 362,085 196,991 2080 4,828 $4,915 375,585 204,379 Total 724,688 737,733 Calculations:

(1) The 2019 costs of$4,099,000 have been added to the 2020 costs.

Column D =(Column D (Previous year's fund balance) x (1 +0.04)) - (Column Bx 0.20) (20% of current year's decommissioning expenditures)

Column E =(Column E (Previous year's fund balance) x (1+0.04)) - (Column Bx 0.10) (10% of current year's decommissioning expenditures) 41Page