Text

Decommissioning Funding Report
	ML050960530
Person / Time
Site:	Diablo Canyon
Issue date:	03/31/2005
From:	Rueger G; Pacific Gas & Electric Co
To:	; Document Control Desk, Office of Nuclear Reactor Regulation
References
	DCL-05-026, OL-DPR-80, OL-DPR-82
	Download: ML050960530 (20)
	v • d • e

5 Pacific Gas and HElectric Company.

Gregory M. Rueger US Mal:

Senior Vice President-Mail Code B32 Generation and Pacific Gas and Electric Company Chief Nuclear Officer PO Box 770000 San Francisco, CA 94177-0001 March 31, 2005 Overnight Mail:

Mail Code B32 Pacific Gas and Electric Company PG&E Letter DCL-05-026 77 Beale Street, 32nd Floor San Francisco, CA 94105-1814 U.S. Nuclear Regulatory Commission 415.973.4684 ATTN: Document Control Desk Fax:

415.973.2313 Washington, DC 20555-0001 Docket No. 50-275, OL-DPR-80 Docket No. 50-323, OL-DPR-82 Diablo Canyon Power Plant Units I and 2 Decommissioning Funding Report for Diablo Canyon Power Plant Units 1 and 2

Dear Commissioners and Staff:

PG&E is submitting the Decommissioning Funding Report for Diablo Canyon Power Plant (DCPP) Units 1 and 2, pursuant to the requirements of 10 CFR 50.75(f).

Diablo Canyon Power Plants Units 1 and 2 At the end of calendar year 2004, the market value of the DCPP Units 1 (3411 MWt) and 2 (3411 MWt) decommissioning trust fund was $1,518.5 million (2004 dollars).

Based on the site-specific decommissioning cost estimate prepared by TLG Services, Inc. and adjusted per the Nuclear Decommissioning Cost Triennial Proceeding (NDCTP) Decision 03-10-014 from the Califomia Public Utilities Commission (CPUC),

PG&E is confident that the DCPP Units 1 and 2 decommissioning trust fund balance in 2021 and 2025 will meet the minimum NRC decommissioning amount of $854.4 million (2005 dollars) that was calculated pursuant to the requirements specified in 10 CFR 50.75(c).

Supporting Cost Estimates Based on site-specific cost estimates prepared by TLG Services, Inc., PG&E has estimated that the decommissioning costs are approximately $1,156.1 million for DCPP Units 1 and 2 in 2005 dollars. These costs do not include dismantling or demolishing the non-nuclear portions of the facility.

To assure that sufficient funds will be available for decommissioning, PG&E has established separate external sinking trust fund accounts for DCPP Units 1 and 2.

A member of the STARS (Strategic Teaming and Resource Sharing) Alliance Callaway

Comanche Peak

Diablo Canyon

Palo Verde

South Texas Project

Wolf Creek

Document Control Desk PG&E Letter DCL-05-026 March 31, 2005 Page 2 Supporting Enclosures Enclosures 1 through 4 provide the supporting documentation for this report. provides decommissioning funding status information in a format suggested by NEI and the NRC. Enclosure provides cost estimates for decommissioning of both nuclear and non-nuclear facilities, including the Independent Spent Fuel Storage Installation (ISFSI). provides information on the escalation of the required decommissioning funding amounts from 1986 dollars to 20-05 dollars. As required by 10 CFR 50.75(c)(2), and using NUREG 1577, 'Standard Review Plan on Power Reactor Licensee Financial Qualifications and Decommissioning Funding Assurance," Revision 1 and NUREG 1307, 'Report on Waste Burial Charges," Revision 10, the information includes escalation factors for energy, labor, and waste burial costs. is the TLG Services, Inc. decommissioning cost study prepared in February 2002 for PG&E for DCPP Units I and 2. The report provides cost estimates (in 2002 dollars) for decommissioning of both the nuclear and non-nuclear facilities. presents an update of decommissioning cost estimates, provided in to reflect 2005 dollars. The TLG Services, Inc. cost estimates have been adjusted to reflect the costs in 2005 dollars by applying escalation factors as adopted in CPUC Decision 03-10-014; adjusting the burial costs of Class A Low Level Radioactive Waste (LLRW) from $450 per cubic foot to $200 per cubic foot; and reducing the contingency from 40 percent to 35 percent.

SiIRcerely Gr o M. Rueger Senior We President -Generation and Chief Nuclear Officer swh2/R0257534 Enclosures cc:

Bruce S. Malleft David Proulex Girija Shukla INPO Diablo Distribution A member of the STARS (Strategic Teaming and Resource Sharing) Alliance Callaway

Comanche Peak

Diablo Canyon

Palo Verde

South Texas Project

Wolf Creek

Enclosure I PG&E Letter DCL-05-026 NRC Decommissioning Funding Status Report Diablo Canyon Power Plant - Units 1 (3411 MWt) & 2 (3411 MWt)

As provided in 10 CFR 50.75(f)(1), each power reactor licensee is required to report to the NRC on a calendar year basis, beginning on March 31, 1999, and every 2 years thereafter, on the status of its decommissioning funding for each reactor or share of reactor it owns.

1. The minimum decommissioning fund estimate,

$ in Millions pursuant to 10 CFR 50.75 (b) and (c)'

January 2005 dollars 854.4

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).

(Alternatively, the total amount accumulated at the end of the calendar year preceding the date of the report can be reported here if the cover letter transmitting the report provides the total estimate and indicates what portion of that estimate is for items not included in 10 CFR 50.75 (b) and (c)).

Market Value (December 2004 dollars)

$ 1,518.5

3. A schedule of the annual amounts remaining to be collected; for items in 10 CFR 50.75 (b) and (c). (Alternatively, the annual amounts remaining to be collected can include items beyond those required in 10 CFR 50.75 (b) and (c) if the cover letter transmitting the report provides a total cost estimate and indicates what portion of that estimate is for items that are not included in 10 CFR 50.75 (b) and (c). (See item 6 of this enclosure describing the collection of additional funds)

Unit 1 amount remaining 0

Unit 2 amount remaining 0

The NRC formulas in section IOCFR50.75(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.

4 PG&E Letter DCL-05-026

4. The assumptions used regarding escalation in decommissioning cost, rates of earnings on decommissioning funds (anticipates that the portfolio of each trust will be gradually converted to a more conservative all income portfolio in 2016 for Unit 1 and 2018 for Unit 2), and rates of other factors used in funding projections; Escalation in decommissioning costs Rate of Return on Qualified Trust Unit I (thought 2016)

Rate of Return on Qualified Trust Unit 1 2017 Rate of Return on Qualified Trust Unit 1 2018 Rate of Return on Qualified Trust Unit 1 2019 Rate of Return on Qualified Trust Unit 1 2020 Rate of Return on Qualified Trust Unit 1 (Post 2020)

Rate of Return on Qualified Trust Unit 2 (through 2018)

Rate of Return on Qualified Trust Unit 2 2019 Rate of Return on Qualified Trust Unit 2 2020 Rate of Return on Qualified Trust Unit 2 2021 Rate of Return on Qualified Trust Unit 2 2022 Rate of Return on Qualified Trust Unit 2 (Post 2022) 5.5 percent 6.34 percent 6.05 percent 5.76 percent 5.47 percent 5.18 percent 4.89 percent 6.34 percent 6.05 percent 5.76 percent 5.47 percent 5.18 percent 4.89 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 current method providing financial assurance occurring since the last submitted report.

California Public Utilities Commission (CPUC) Decision 03-10-014 dated October 2, 2003, ordered no additional revenue requirement is authorized for decommissioning Diablo Canyon Nuclear Power Plant Units 1 & 2

7. Any material changes to trust agreements.

NONE

8. CPUC Submittal in 2005 Dollars in Millions Total Project (Decommission 2021 & 2025)

Scope Excluded from NRC calculations Total NRC Decommissioning Costs

$ 1,695.2

$ 539.1

$ 1,156.1 2

PG&E Letter DCL-05-026 Decommissioning Funding Amounts From 1986 Dollars to 2005 Dollars Information on the Escalation of Funding

2005 Decommisioning Estimate PG&E Letter DCL-05-026 Nuclear Regulatory Commission Estimate of Decommission Costs for PWR In 2005 DCPP PWR (millions)

Jan 1986 Estimate 210 Escalated to 1999 Escalated to 2000 Escalated to 2001 Escalated to 2002 Escalated to 2003 Escalated to 2004 Escalated to 2005 (Table 2.1 in NUREG 1307 Rev 10 236.5 has no value for 1999 Burial)

(No Submittal Required) 774.4 ($793.4 in 2001 Submittal)

(No Submittal Required) 811.2 ($809.6 in 2003 Submittal)

(No Submittal Required) 854.4 Jan 1986 based on 10 CFR 50.75 (c) Table of minimum amounts BWR based on minimum 1, 200 MWt = ($104 + (.009xMWt)) million per unit Page 1

Composite Escalation PG&E Letter DCL-005-026 Calculating Overall Escalation Rate PWR L (Labor)

E (Energy)

B (Burial)

Jan-86 Jan-99 Jan-00 Jan-01 Jan-02 Jan-03 Jan-04 Jan-05 Weight (1) 1.0000 1.5624 1.6370 1.7183 1.7862 1.8630 1.9521 2.0033 0.65 1.0000 0.8499 1.0297 1.1850 0.9909 1.2027 1.2164 1.4743 0.13 1.0000 0.0000 10.8039 10.9840 11.1633 11.3430 11.5226 11.7032 0.22 PWR Combined Escalation Rate for.

Jan-86 Jan-99 Jan-00 Jan-01 Jan-02 Jan-03 Jan-04 Jan-05 1.0000 1.1260 3.5748 3.6874 3.7458 3.8628 3.9620 4.0685 (1) from NUREG 1307 Revision 10, Report on Waste Burial Charges, Section 2 Summary, Page 3... where A, B, and C are the fractions of the total 1988 dollar costs that are attributable to labor (0.65), energy (0.13), and burial (0.22), respectively, and sum to 1.0.

(2) Jan-01 B (Burial) value In this table is a calculation based on averaging the values of Jan-00 and Jan-02 because NUREG 1307 Revision 10 Table 2.1 does not supply a value for 2001.

(3) Jan-03, Jan-04, and Jan-05 (Burial) value in this table Is a calculation based on averaging the values of between 2000 and 2002, then adding the average to each previous year beginning with 2002.

Page 2

Development of E Component Calculation of Energy Escalation Factor - REFERENCE NUREG-1 307. REVISION 10, SECTION 3.2 Using Regional Indices SERIES ID: WPU0573 Light Fuel Oils (as of 03/05/05) and WPU0543 Industrial Electric Power (as of 03/05/05)

REBASED TO 1986 = 100 PPI for Fuels &

PPI for Light PPI for Fuels &

PPI for Light Related Products Fuel Oils Related Products Fuel Oils (1982 = 100)

(1982=100)

(1986 = 100)

(1986=100)

(P) =Industrial Energy Power (F) = Light Fuel Oils (P) =Industrial Energy Power (F) = Light Fuel Oils PG&E Letter DCL-05-028 Energy Escalation Factor (E) for PWR (Diablo Canyon)

PWR wt =

0.58 PWR wt =

0.42 Jan-86 Feb-86 Mar-88 Apr-86 May-86 Jun-86 Jul-86 Aug-86 Sep-86 Oct-88 Nov-86 Dec-86 Jan-87 Feb-87 Mar-87 Apr-87 May-87 Jun-87 Jul-87 Aug-87 Sep-87 Oct-87 Nov-87 Dec-87 Jan-88 Feb-88 Mar-88 Apr-88 May-88 Jun-88 Jul-88 Aug-88 Sep-88 Oct-88 Nov-88 Deo-88 Jan-89 Feb-89 Mar-89 Apr-89 May-89 Jun-89 Jul-89 Aug89 Sep-89 114.2 115.0 114.4 113.7 114.1 115.3 116.2 116.3 118.3 113.0 112.7 112.3 110.3 109.8 110.2 109.9 111.8 113.9 116.2 115.7 115.5 111.0 109.2 109.6 108.8 109.0 109.0 109.1 108.9 117.2 118.2 118.3 118.5 114.2 109.2 110.5 112.0 112.0 112.3 112.4 113.8 119.8 122.2 122.4 122.5 82.0 62.4 51.3 49.8 47.0 44.7 38.4 40.1 48.3 43.1 43.5 45.6 51.4 53.1 49.7 52.0 53.3 55.1 58.3 59.4 58.8 59.3 61.2 58.1 54.8 51.5 49.7 53.3 54.3 50.6 46.9 46.8 45.9 42.3 47.2 50.8 54.9 54.0 57.3 61.5 57.5 53.3 52.7 53.5 59.3 1.0000 1.0070 1.0018 0.9956 0.9991 1.0096 1.0175 1.0184 1.0184 0.9895 0.9869 0.9834 0.9858 0.9615 0.9650 0.9623 0.9790 0.9974 1.0175 1.0131 1.0114 0.9720 0.9562 0.9597 0.9527 0.9545 0.9545 0.9553 0.9536 1.0283 1.0350 1.0359 1.0377 1.0000 0.9582 0.9676 0.9807 0.9807 0.9834 0.9842 0.9947 1.0490 1.0701 1.0718 1.0727 1.0000 0.7610 0.6256 0.6073 0.5732 0.5451 0.4439 0.4890 0.5646 0.5258 0.5305 0.5561 0.6268 0.8478 0.6061 0.6341 0.6500 0.6720 0.6868 0.7244 0.6927 0.7232 0.7463 0.7085 0.6683 0.6280 0.6061 0.6500 0.6622 0.6171 0.5720 0.5707 0.5598 0.5159 0.5758 0.6171 0.6695 0.6585 0.6988 0.7500 0.7012 0.8500 0.6427 0.6524 0.7232 1.0000 0.9037 0.8438 0.8325 0.8202 0.8145 0.7766 0.7961 0.8278 0.7947 0.7952 0.8039 0.8235 0.8296 0.8142 0.8245 0.8408 0.8607 0.8785 0.8919 0.8775 0.8675 0.8681 0.8542 0.8333 0.8174 0.8082 0.8271 0.8312 0.8544 0.8405 0.8405 0.8369 0.7967 0.7964 0.8204 0.8500 0.8454 0.8838 0.8859 0.8715 0.8814 0.8908 0.8957 0.9259 Page 3

Development of E Component Calculation of Energy Escalation Factor - REFERENCE NUREG-1 307, REVISION 10, SECTION 3.2 Using Regional Indices SERIES ID: WPU0S73 Light Fuel Oils (as of 03105/05) and WPU0543 Industrial Electric Power (as of 03/05/05)

REBASED TO 1986 = 100 PPI for Fuels &

PPI for Light PPI for Fuels &

PPI for Light Related Products Fuel Oils Related Products Fuel Oils (1982 = 100)

(1982=100)

(1988 = 100)

(1986=100)

(P) =Industrlal Energy Power (F) = Light Fuel Oils (P) =Industrial Energy Power (F) = Light Fuel Oils PG&E Letter DCL-05-026 Oct-89 Nov-89 Dec-89 Jan-90 Feb-90 Mar-90 Apr-90 May-90 Jun-90 Jul-90 Aug-90 Sep-90 Oct-90 Nov-90 Dec-90 Jan-91 Feb-91 Mar-91 Apr-91 May-91 Jun-91 Jul-91 Aug-91 Sep-91 Oct-91 Nov-91 Der-91 Jan-92 Feb-92 Mar-92 Apr-92 May-92 Jun-92 Jul-92 Aug-92 Sep-92 Oct-92 Nov-92 Deo-92 Jan-93 Feb-93 Mar-93 Apr-93 May-93 Jun-93 Jul-93 Aug-93 117.2 113.5 114.2 114.9 115.0 115.4 115.1 117.0 123.9 124.4 124.6 125.0 121.2 120.2 118.9 124.2 124.3 124.3 124.7 128.2 132.6 134.5 133.8 133.8 128.3 123.1 125.1 125.9 125.3 125.8 124.8 128.5 134.8 135.6 135.1 135.9 131.2 125.5 128.7 127.1 126.4 126.7 126.8 127.5 136.9 137.1 137.2 64.0 64.4 68.1 85.3 59.4 60.4 61.0 58.4 53.0 51.6 72.3 87.3 104.8 98.9 89.3 82.9 74.3 61.6 60.0 59.6 57.6 58.1 62.1 65.4 67.6 71.0 62.2 54.4 57.3 56.0 59.0 62.1 65.4 64.6 63.3 65.6 68.2 64.2 59.4 59.0 60.4 63.2 62.4 62.6 60.8 57.0 54.4 1.0263 0.9939 1.0000 1.0081 1.0070 1.0105 1.0079 1.0245 1.0849 1.0893 1.0911 1.0946 1.0613 1.0525 1.0412 1.0876 1.0884 1.0884 1.0919 1.1226 1.1611 1.1778 1.1716 1.1716 1.1235 1.0779 1.0954 1.1025 1.0972 1.1016 1.0928 1.1252 1.1804 1.1874 1.1830 1.1900 1.1489 1.0989 1.1095 1.1130 1.1068 1.1095 1.1103 1.1165 1.1988 1.2005 1.2014 0.7805 0.7854 0.8305 1.0402 0.7244 0.7366 0.7439 0.7122 0.6463 0.6293 0.8817 1.0646 1.2780 1.2061 1.0890 1.0110 0.9081 0.7512 0.7317 0.7268 0.7024 0.7085 0.7573 0.7976 0.8244 0.8659 0.7585 0.6634 0.6988 0.6829 0.7195 0.7573 0.7976 0.7878 0.7720 0.8000 0.8317 0.7829 0.7244 0.7195 0.7366 0.7707 0.7610 0.7634 0.7415 0.6951 0.6634 Energy Escalation Factor (E) for PWR (Diablo Canyon) 0.9230 0.9063 0.9288 1.0205 0.8883 0.8955 0.8970 0.8933 0.9007 0.8961 1.0031 1.0820 1.1523 1.1170 1.0613 1.0554 1.0119 0.9468 0.9406 0.9564 0.9685 0.9807 0.9976 1.0145 0.9979 0.9889 0.9539 0.91 81 0.9299 0.9257 0.9360 0.9707 1.0196 1.0196 1.0104 1.0262 1.0157 0.9662 0.9477 0.9477 0.9513 0.9672 0.9636 0.9682 1.0067 0.9883 0.9754 Page 4

Development of E Component Calculation of Energy Escalation Factor - REFERENCE NUREG-1307, REVISION 10, SECTION 3.2 Using Regional Indices SERIES ID: WPU0573 Light Fuel Oils (as of 03/05/05) and WPU0543 Industrial Electric Power (as of 03/05/05)

REBASED TO 1988 = 100 PPI for Fuels &

PPI for Light PPI for Fuels &

PPI for Light Related Products Fuel Oils Related Products Fuel Oils (1982 = 100)

(1982=100)

(1986 = 100)

(1986=100)

(P) =industrial Energy Power (F) = Light Fuel Oils (P) =Industrial Energy Power (F) = Light Fuel Oils PG&E Letter DCL-05-026 Sep-93 Oct-93 Nov-93 Dec-93 Jan-94 Feb-94 Mar-94 Apr-94 May-94 Jun-94 Jul-94 Aug-94 Sep-94 Oct-94 Nov-94 Dec-94 Jan-95 Feb-95 Mar-95 Apr-95 May-95 Jun-95 Jul-95 Aug-95 Sep-95 Oct-95 Nov-95 Dec-95 Jan-96 Feb-96 Mar-96 Apr-96 May-96 Jun-96 Jul-96 Aug-96 Sep-96 Oct-96 Nov-96 Dec-96 Jan-97 Feb-97 Mar-97 Apr-97 May-97 Jun-97 Jul-97 137.6 131.9 126.3 126.0 126.2 125.9 125.8 125.4 126.0 133.5 134.5 134.5 134.9 129.1 127.0 127.4 127.6 128.0 128.3 126.4 130.2 135.3 136.6 136.5 133.7 131.4 127.6 127.7 127.9 127.1 127.8 129.1 135.0 137.5 136.0 136.2 136.2 131.2 127.1 127.7 128.3 128.1 128.2 127.3 129.7 135.1 135.9 59.3 65.4 61.6 51.4 51.5 57.5 56.2 54.7 54.7 54.1 56.3 57.5 57.7 57.7 58.8 54.7 54.7 53.3 54.3 57.1 59.1 55.8 53.5 55.6 58.2 57.8 59.5 60.6 62.6 59.7 63.5 74.7 72.0 62.8 64.3 66.5 73.4 79.7 76.5 76.1 73.7 72.3 65.2 65.3 64.2 60.8 57.8 1.2049 1.1550 1.1060 1.1033 1.1051 1.1025 1.1018 1.0981 1.1033 1.1690 1.1778 1.1778 1.1813 1.1305 1.1121 1.1156 1.1173 1.1208 1.1235 1.1068 1.1401 1.1848 1.1961 1.1953 1.1708 1.1506 1.1173 1.1182 1.1200 1.1130 1.1191 1.1305 1.1821 1.2040 1.1909 1.1926 1.1926 1.1489 1.1130 1.1182 1.1235 1.1217 1.122f 1.1147 1.1357 1.1830 1.1900 0.7232 0.7976 0.7512 0.6268 0.6280 0.7012 0.6854 0.6671 0.6671 0.6598 0.8866 0.7012 0.7037 0.7037 0.7171 0.6871 0.6671 0.6500 0.6622 0.8963 0.7207 0.6805 0.f524 0.8780 0.7098 0.7049 0.7256 0.7390 0.7634 0.7280 0.7744 0.9110 0.8780 0.7659 0.7841 0.8110 0.8951 0.9720 0.9329 0.9280 0.8988 0.8817 0.7951 0.7963 0.7829 0.7415 0.7049 Energy Escalation Factor (E) for PWR (Diablo Canyon) 1.0026 1.0049 0.9570 0.9032 0.9047 0.9339 0.9268 0.9171 0.9201 0.9551 0.9715 0.9776 0.9807 0.9512 0.9462 0.9272 0.9282 0.9231 0.9297 0.9344 0.9640 0.9730 0.9678 0.9780 0.9771 0.9634 0.9528 0.9590 0.9702 0.9513 0.9743 1.0383 1.0544 1.0200 1.0201 1.0323 1.0677 1.0746 1.0373 1.0383 1.0291 1.0209 0.9851 0.9810 0.9876 0.9976 0.9863 Page 5

Development of E Component Calculation of Energy Escalation Factor - REFERENCE NUREG-1 307, REVISION 10. SECTION 3.2 Using Regional Indices SERIES ID: WPU0573 Light Fuel Oils (as of 03105105) and WPU0543 Industrial Electric Power (as of 03105/05)

REBASED TO 1988 a 100 PPI for Fuels &

PPI for Light PPI for Fuels &

PPI for Light Related Products Fuel Oils Related Products Fuel Oils (1982 = 100)

(1982=100)

(1986 = 100)

(1986=100)

(P) =Industrial Energy Power (F) = Light Fuel Ols (P) =Industrial Energy Power (F) = Light Fuel Oils PG&E Letter DCL-05-028 Aug-97 Sep-97 Oct-97 Nov-97 Dec-97 Jan-98 Feb-98 Mar-98 Apr-98 May-98 Jun-98 Jul-98 Aug-98 Sep-98 Oct-98 Nov-98 Dec-98 Jan-99 Feb-99 Mar-99 Apr-99 May-99 Jun-99 Jul-99 Aug-99 Sep-99 Oct-99 Nov-99 Dec-99 Jan-00 Feb-00 Mar-00 Apr-00 May-00 Jun-00 Jul-00 Aug-00 Sep-00 Oct-00 Nov-00 Deo-00 Jan-01 Feb-01 Mar-01 Apr-01 May-01 Jun-01 134.7 135.0 130.1 127.9 128.3 127.4 127.2 128.7 126.4 129.2 133.8 134.8 135.2 135.2 130.4 127.6 128.6 128.1 125.5 125.5 125.2 127.4 131.0 133.9 133.9 134.1 129.5 127.5 128.5 126.8 126.7 128.7 126.8 128.6 133.6 136.2 137.4 137.8 134.1 130.9 132.7 138.4 136.4 136.5 135.1 138.2 148.4 61.5 60.4 64.8 65.8 59.4 54.1 52.0 48.3 50.2 50.0 46.3 45.0 44.0 48.3 47.4 46.2 38.8 40.9 38.2 42.8 52.5 52.6 52.4 58.7 63 67.8 65.5 71.3 72.9 75.3 87.9 89.7 83.1 82.9 86.2 88.7 91.6 110.1 108.6 108.4 100.6 96.1 91.6 83.1 86.2 94.2 90.2 1.1795 1.1909 1.1392 1.1200 1.1235 1.1156 1.1138 1.1095 1.1068 1.1313 1.1716 1.1804 1.1839 1.1839 1.1419 1.1173 1.1086 1.1042 1.0989 1.0989 1.0903 1.1156 1.1471 1.1725 1.1725 1.1743 1.1340 1.1165 1.1077 1.1103 1.1095 1.1095 1.1103 1.1261 1.1699 1.1926 1.2032 1.2067 1.1743 1.1462 1.1620 1.1944 1.1944 1.1953 1.1830 1.1928 1.2995 0.7500 0.7366 0.7902 0.8024 0.7244 0.6598 0.6341 0.5890 0.6122 0.6098 0.5646 0.5488 0.5366 0.5890 0.5780 0.5634 0.4732 0.4988 0.4659 0.5220 0.6402 0.6415 0.6390 0.7159 0.7683 0.8244 0.7988 0.8695 0.8890 0.9183 1.0720 1.0939 1.0134 1.0110 1.0512 1.0817 1.1171 1.3427 1.3244 1.3220 1.2268 1.1720 1.1171 1.0134 1.0512 1.1488 1.1000 Energy Escalation Factor (E) for PWR (Diablo Canyon) 0.9991 1.0001 0.9927 0.9866 0.9559 0.9241 0.9124 0.8909 0.8991 0.9123 0.9187 0.9151 0.9120 0.9340 0.9051 0.8847 0.8417 0.8499 0.8330 0.8566 0.9048 0.9165 0.9337 0.9807 1.0027 1.0273 0.9932 1.0127 1.0159 1.0297 1.0937 1.1029 1.0696 1.0777 1.1200 1.1461 1.1670 1.2638 1.2373 1.2200 1.1892 1.1850 1.1619 1.1189 1.1277 1.1742 1.2157 Page 6

Development of E Component Calculation of Energy Escalation Factor-REFERENCE NUREG-1307, REVISION 10, SECTION 3.2 Using Regional Indices SERIES ID: WPU0573 Light Fuel Oils (as of 03105105) and WPU0543 Industrial Electric Power (as of 03/05/05)

REBASED TO 1986 = 100 PPI for Fuels &

PPI for Light PPI for Fuels &

PPI for Light Related Products Fuel Oils Related Products Fuel Oils (1982 = 100)

(1982=100)

(1988 = 100)

(1986=100)

(P) =lndustrial Energy Power (F) = Light Fuel Oils (P) =Industrial Energy Power (F) = Light Fuel Oils Endosure 2 PG&E Letter DCL-05-026 Jul-01 Aug-01 Sep-01 Oct-01 Nov-01 Dec-01 Jan-02 Feb-02 Mar-02 Apr-02 May-02 Jun-02 Jul-02 Aug-02 Sep-02 Oct-02 Nov-02 Dec-02 Jan-03 Feb-03 Mar-03 Apr-03 May-03 Jun-03 Jul-03 Aug-03 Sep-03 Oct-03 Nov-03 Dec-03 Jan-04 Feb-04 Mar-04 Apr-04 May-04 Jun-04 Jul-04 Aug-04 Sep-04 Oct-04 Nov-04 Dec-04 Jan-05 149.5 148.9 148.2 143.8 137.3 138.9 136.3 135.4 135.7 135.4 137.9 143.6 144.9 145.0 145.8 140.0 139.5 139.8 140.3 140.6 143.3 144.3 145.1 148.3 151.6 151.3 152.0 147.4 142.7 142.9 143.1 143.1 143.1 143.1 144.2 152.4 152.2 154.0 154.0 146.2 146.5 147.9 150.6 81.3 83.2 93 78.8 70.5 56.6 58.3 59.6 69.1 78.4 75 71.4 75.5 77.9 89.5 95.1 82.8 84.6 95.7 120.4 128.9 98.3 85.5 87.2 90.1 94.1 88.2 97.8 93.0 95.8 106.8 100.8 107.8 115.2 116 111.5 119.3 131.1 136.8 161,7 153.6 133.4 138.5 1.3091 1.3039 1.2977 1.2592 1.2023 1.1988 1.1935 1.1856 1.1883 1.1856 1.2075 1.2574 1.2688 1.2697 1.2767 1.2259 1.2215 1.2224 1.2285 1.2312 1.2548 1.2636 1.2706 1.2986 1.3275 1.3249 1.3310 1.2907 1.2496 1.2513 1.2531 1.2531 1.2531 1.2531 1.2627 1.3345 1.3327 1.3485 1.3485 1.2802 1.2828 1.2951 1.3187 0.9915 1.0146 1.1341 0.9366 0.8598 0.6902 0.7110 0.7268 0.8427 0.9317 0.9148 0.8707 0.9207 0.9500 1.0915 1.1598 1.0098 1.0317 1.1671 1.4683 1.5720 1.1988 1.0427 1.0634 1.0988 1.1476 1.0756 1.1927 1.1341 1.1683 1.3024 1.2293 1.3146 1.4049 1.4146 1.3598 1.4549 1.5988 1,6683 1.9720 1.8732 1.6268 1.6890 Energy Escalation Factor (E) for PWR (Diablo Canyon) 1.1757 1.1824 1.2290 1.1237 1.0584 0.9852 0.9909 0.9929 1.0431 1.0790 1.0845 1.0950 1.1226 1.1354 1.1989 1.1981 1.1326 1.1423 1.2027 1.3308 1.3880 1.2364.

1.1749 1.1998 1.2314 1.2504 1.2237 1.2495 1.2011 1.2164 1.2738 1.2431 1.2789 1.3168 1.3285 1.3451 1.3840 1.4536 1.4828 1.5707 1.5308 1.4344 1.4743 Oct 04 through Jan 05 are Preliminary Values from PPI Indices Page 7

Development of L Component PG&E Letter DCL-05-026 Calculation of Labor Escalation Factor - REFERENCE NUREG-1 307, REVISION 10, SECTION 3.1 Using Regional Indices SERIES ID: EDU 13402i (as of 03/05/05)