NRC-19-0022, Enrico Fermi Atomic Power Plant, Unit 1, Decommissioning Funding Status Report

Enrico Fermi Atomic Power Plant, Unit 1, Decommissioning Funding Status Report

ML19088A250
Person / Time
Site:	Fermi
Issue date:	03/29/2019
From:	Fessler P DTE Energy
To:	Document Control Desk, Office of Nuclear Reactor Regulation
References
NRC-19-0022
Download: ML19088A250 (11)

Text

Paul Fessler Senior Vice President and Chief Nuclear Officer DTE Energy Company 6400 N. Dixie Highway, Newport, MI 48166 Tel: 734.586.4153 Fax: 734.586.1431 Email: paul.fessler@dteenergy.com March 29, 2019 10 CFR 50.75 NRC-19-0022 10 CFR 50.82 U.S. Nuclear Regulatory Commission Attention: Document Control Desk Washington, DC 20555-0001 Enrico Fermi Atomic Power Plant, Unit No. 1 NRC Docket No. 50-16 NRC License No. DPR-9

Subject:

Decommissioning Funding Status Report for Fermi 1 This letter provides the report required by 10 CFR 50.75(f)(1) and 10 CFR 50.82(a)(8)(v) on the status of DTE Electric Companys decommissioning funding assurance for Fermi 1.

Fermi 1 is a permanently shutdown experimental sodium cooled breeder reactor, which last operated in 1972. It is in the SAFSTOR status and its possession-only license expires in 2025.

At a future date, decommissioning will be continued for the purpose of removing the remaining residual radioactive material and terminating the Fermi 1 license. The decommissioning estimate provided is based on an end of year review, as required.

The requested annual decommissioning fund information for Fermi 1, reported in 2018 dollars, is provided in Enclosure 1 of this letter. The prepayment trust method and DTE Electric Company funding combined with a DTE Energy parent company guarantee is providing funding assurance.

Documentation of the financial test for this guarantee is provided in Enclosure 2 of this letter.

The parent company guarantee requires providing the NRC with the DTE Energy Company 2018 Form 10-K Annual Report to the United States Securities and Exchange Commission. This report is available from the DTE Energy website.

No new commitments are being made in this submittal.

USNRC NRC-19-0022 Page 2 Should you have any questions or require additional information, please contact Mr. Scott A.

Maglio, Manager -Nuclear Licensing, at (734) 586-5076.

Sincerely, Paul Fessler Senior Vice President and CNO

Enclosures:

1. Decommissioning Funding Status Report

2. DTE Energy Guarantee Financial Test cc: NRC Project Manager (K. Conway)

NRC Resident Office NRC Region III (P. Lee)

Regional Administrator, Region III Michigan Public Service Commission Regulated Energy Division (kindschl@michigan.gov)

Enclosure 1 to NRC-19-0022 Enrico Fermi Atomic Power Plant, Unit 1 NRC Docket No. 50-16 NRC License No. DPR-9 Decommissioning Funding Status Report to NRC-19-0022 Page 1 Decommissioning Funding Status Report Fermi 1 A decommissioning funding status report is required in 10 CFR 50.75(f)(1) and 10 CFR 50.82(a)(8)(v). Each of the required items is discussed below.

1. The minimum decommissioning fund estimate, pursuant to 10 CFR 50.75 (b) and (c).

The decommissioning cost estimate for Fermi 1 is based on a site-specific estimate adjusted by ongoing reviews. The estimated remaining decommissioning cost in 2018 dollars, including $150,000 per year for SAFSTOR maintenance (which assumes 12 years), with a contingency of 30% is approximately $22.5 million.

2. The amount accumulated at the end of calendar year preceding the date of the report for items included in 10 CFR 50.75 (b) and (c).

The market value of the Fermi 1 trust fund is currently approximately $2.8 million. There was minimal taxable income on the Fermi 1 Trust fund in 2018, so the after-tax value is the same as the fair market value.

3. The remaining balance of any decommissioning funds, and the amount provided by other financial assurance methods being relied upon.

The Fermi 1 trust fund is currently approximately $19.7 million below estimated remaining costs. A DTE Energy guarantee has been chosen as the assurance method for the shortfall. The current DTE Energy guarantee is $20 million.

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

DTE Electric Company is not collecting any additional amounts nor relying upon any contracts for the purpose of decommissioning funding assurance for Fermi 1.

5. The amount spent on decommissioning, both cumulative and over the previous calendar year.

The total cost of Fermi 1 decommissioning activities and SAFSTOR maintenance through December 31, 2018 was $85.4 million. This includes expenditure during initial decommissioning in the 1970s. No money was spent on decommissioning activities in 2018.

6. Any difference between actual and estimated costs for work performed during the year.

The budget for SAFSTOR maintenance for 2018 was $150K. The amount spent for SAFSTOR maintenance was $101.3K.

to NRC-19-0022 Page 2

7. The assumptions used regarding escalation in decommissioning cost, rates of earnings on decommissioning fund, and rates of other factors used in funding projection.

Decommissioning costs are assumed to increase at a rate equal to 4.5% with earnings on the decommissioning fund assumed to be equal to 0%.

8. Any contracts upon which the licensee is relying pursuant to 10 CFR 50.75 (e) (1) (v).

None.

9. Any modifications to the current method of providing financial assurance occurring since the last submitted report.

None.

10. Any material changes to the trust agreement.

None.

Enclosure 2 to NRC-19-0022 Enrico Fermi Atomic Power Plant, Unit 1 NRC Docket No. 50-16 NRC License No. DPR-9 DTE Energy Guarantee Financial Test