DCL-23-023, Decommissioning Funding Report for Diablo Canyon Power Plant, Units 1 and 2
| ML23087A117 | |
| Person / Time | |
|---|---|
| Site: | Diablo Canyon  |
| Issue date: | 03/28/2023 |
| From: | Zawalick M Pacific Gas & Electric Co |
| To: | Office of Nuclear Reactor Regulation, Document Control Desk |
| References | |
| DCL-23-023 | |
| Download: ML23087A117 (1) | |
Text
Maureen R. Zawalick Vice President Business and Technical Services Diablo Canyon Power Plant Mail code 104/6/608 P.O. Box 56 Avila Beach, CA 93424 805.545.4242 Maureen.Zawalick@pge.com Callaway x Diablo Canyon x Palo Verde x Wolf Creek PG&E Letter DCL-23-023 U.S. Nuclear Regulatory Commission 10 CFR 50.75(f)
ATTN: Document Control Desk 10 CFR 50.82(a)(8)(v)
Washington, DC 20555-0001 10 CFR 50.82(a)(8)(vii)
Docket No. 50-275, OL-DPR-80 Docket No. 50-323, OL-DPR-82 Diablo Canyon Units 1 and 2 Decommissioning Funding Report for Diablo Canyon Power Plant, Units 1 and 2
Reference:
- 1. NRC Letter, Diablo Canyon Power Plant, Units 1 and 2 - Exemptions from the Requirements of 10 CFR Part 50, Sections 50.82(a)(8)(i)(A) and 50.82(a)(8)(ii) (EPID L-2018-LLE-0023), dated September 10, 2019 (ML19163A104)
Dear Commissioners and Staff:
Pacific Gas and Electric Company (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). In accordance with 10 CFR 50.82(a)(8)(v),
after submitting the site-specific DCE, and until the licensee has completed its final radiation survey and demonstrated that residual radioactivity has been reduced to a level that permits termination of its license, licensees must annually submit to the NRC, by March 31, a financial assurance status report. In addition, in accordance with 10 CFR 50.82(a)(8)(vii), after submitting the site-specific DCE, the licensee must annually submit to the NRC, by March 31, a report on the status of funding for managing irradiated fuel. PG&E is continuing decommissioning SUHplanning activities while also taking actions, in accordance with California Senate Bill 846, to extend the operating licenses for Diablo Canyon Power Plant, Units 1 and 2.
In Reference 1, the NRC granted PG&E an exemption request to allow withdrawal of
$187.8 million ($2017) from the Diablo Canyon Nuclear Decommissioning Trust (NDT) to fund radiological decommissioning, spent fuel management, and site restoration planning activities prior to permanent cessation of operations. As of the date of this submittal, PG&E has withdrawn $36.3 million from the DCPP Qualified Master Trust for preliminary decommissioning planning costs incurred through 2019 in accordance with Section 2.01(7) of the Qualified Master Trust Agreement.
A member of the STARS Alliance
Document Control Desk PG&E Letter DCL-23-023 Page 2 A member of the STARS Alliance Callaway x Diablo Canyon x Palo Verde x Wolf Creek Diablo Canyon Power Plant, Units 1 and 2 At the end of calendar year 2022, the market values of the DCPP Units 1 (3411 MWt) and 2 (3411 MWt) decommissioning trust fund were $1,583.0 million and $2,075.5 million, respectively. PG&E currently has more funds in the DCPP, Units 1 and 2, decommissioning trust fund than required to meet the minimum NRC decommissioning amount of $804.4 million (2023 dollars) for each unit that was calculated pursuant to the requirements of 10 CFR 50.75(c).
Supporting Cost Estimates PG&E prepared a site-specific DCE that was submitted to the California Public Utilities Commission in the 2021 Nuclear Decommissioning Cost Triennial Proceeding (NDCTP) on December 14, 2021. PG&E does not expect a final ruling in the 2021 NDCTP until 2023. Based on this site-specific DCE provided, PG&E estimates that the license termination decommissioning costs are about
$1,355.9 million for DCPP Unit 1 and $1,250.1 million for Unit 2 in 2023 dollars.
These costs do not include site restoration of the facilities ($718.7 million in 2023 dollars) or spent fuel management costs ($943.7 million in 2023 dollars) after shutdown of Units 1 and 2.
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.
As part of the final decision in the 2018 NDCTP, PG&E is not currently collecting any additional funds in the Qualified NDT. PG&E did not request any additional collection from customers in the 2021 NDCTP and will reevaluate funding needs in the 2024 NDCTP filing based on market forces, updated estimates and other factors.
Updates to the information included in this submittal will be included in future submittals.
Supporting Enclosures provides decommissioning funding status information in a format suggested by the Nuclear Energy Institute (NEI) and the NRC.
is a cash flow for the total decommissioning of DCPP that identifies the monies for NRC scope (removal of radiological contamination), site restoration (including non-radiological work), and the spent fuel management based on the 2021 NDCTP Cost Estimate by unit. The 2021 NDCTP cost estimate is based on DCPP Units 1 and 2 shutting down at the current expiration date of the operating licenses. If PG&E is granted permission by the State of California and the NRC to continue operating, the cash flows in Enclosure 2 will be updated in subsequent filings. The cash flows provided in Enclosure 2 represent the forecasted cost for
Document Control Desk PG&E Letter DCL-23-023 Page 3 A member of the STARS Alliance Callaway x Diablo Canyon x Palo Verde x Wolf Creek radiological decommissioning, site restoration, and spent fuel management, and do not represent separate sub-accounts within the decommissioning trust fund.
PG&E makes no new or revised regulatory commitments (as defined by NEI 99-04) in this letter.
Should you have any questions, please contact Mr. Brian Ketelsen at (805) 833-9605.
Sincerely, Maureen R. Zawalick Vice President Business and Technical Services Date Enclosures cc:
Diablo Distribution cc/enc: Mahdi O. Hayes, NRC Senior Resident Inspector Samson S. Lee, NRC Senior Project Manager Robert J. Lewis, NRC Acting Region IV Administrator INPO March 28, 2023 PG&E Letter DCL-23-023 NRC Decommissioning Funding Status Report Diablo Canyon Power Plant - Units 1 (3411 MWt) and 2 (3411 MWt)
PG&E Letter DCL-23-023 Page 1 of 4 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. Any licensee for a plant that is within 5 years of the projected end of its operation, shall submit this report annually.
Note that items 3 and 8 are data included in PG&Es Nuclear Decommissioning Cost Triennial Proceeding filed with the California Public Utilities Commission on December 14, 2021. A final ruling in the case is not expected until the second quarter of 2023. Updates to the information included in this submittal will be included in future submittals.
- 1. The minimum decommissioning fund estimate, pursuant to 10 CFR 50.75 (b) and (c)1
$ in Millions Value in January 2023 dollars Unit 1: $ 804.4 Unit 2: $ 804.4
- 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)).
$ in Millions Market Value (December 2022 dollars)
Unit 1: $ 1,583.0 Unit 2: $ 2,075.5
- 3. A schedule of the annual amounts remaining to be collected include items beyond those required in 10 CFR 50.75 (b) and (c). (The cover letter transmitting the report provides a total cost estimate and indicates the portions of that estimate for items that are not included in 10 CFR 50.75 (b) and (c)).
There are no planned contributions to the Qualified Nuclear Decommissioning Trust.
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 Department of Energy are not included in the cost formulas.
PG&E Letter DCL-23-023 Page 2 of 4
- 4. The assumptions used regarding escalation in decommissioning cost, rates of earnings on decommissioning funds, and rates of other factors used in funding projections.
Escalation Rates in Decommissioning Costs Year PG&E Materials Contract Burial Labor Equipment Labor Costs Other 2023 0.0347 0.0140 0.0338 0.0415 0.0208 2024 0.0347 0.0154 0.0309 0.0415 0.0224 2025 0.0347 0.0159 0.0296 0.0415 0.0233 2026 0.0347 0.0169 0.0297 0.0415 0.0238 2027 0.0347 0.0168 0.0298 0.0415 0.0238 2028 0.0347 0.0176 0.0291 0.0415 0.0236 2029 0.0347 0.0180 0.0287 0.0415 0.0236 2030 0.0347 0.0184 0.0291 0.0415 0.0234 2031 0.0347 0.0187 0.0289 0.0415 0.0235 2032 0.0347 0.0191 0.0297 0.0415 0.0229 2033 0.0347 0.0194 0.0299 0.0415 0.0229 2034 0.0347 0.0195 0.0299 0.0415 0.0229 2035 0.0347 0.0194 0.0299 0.0415 0.0228 2036 0.0347 0.0195 0.0299 0.0415 0.0228 2037 0.0347 0.0196 0.0299 0.0415 0.0228 2038 0.0347 0.0198 0.0299 0.0415 0.0227 2039 0.0347 0.0198 0.0299 0.0415 0.0225 2040 0.0347 0.0197 0.0299 0.0415 0.0225 2041 0.0347 0.0194 0.0299 0.0415 0.0221 2042 0.0347 0.0194 0.0299 0.0415 0.0222 2043 0.0347 0.0195 0.0299 0.0415 0.0222 2044 0.0347 0.0194 0.0299 0.0415 0.0222 2045 0.0347 0.0194 0.0299 0.0415 0.0222 2046 0.0347 0.0195 0.0299 0.0415 0.0222 2047 0.0347 0.0195 0.0299 0.0415 0.0222 2048 0.0347 0.0195 0.0299 0.0415 0.0222 2049 0.0347 0.0196 0.0299 0.0415 0.0222 2050 0.0347 0.0196 0.0300 0.0415 0.0223 2051 0.0347 0.0196 0.0299 0.0415 0.0222 2052 0.0347 0.0196 0.0299 0.0415 0.0223 2053 0.0347 0.0196 0.0299 0.0415 0.0223 2054 0.0347 0.0196 0.0299 0.0415 0.0223 2055 0.0347 0.0196 0.0299 0.0415 0.0223 2056 0.0347 0.0196 0.0299 0.0415 0.0223 2057 0.0347 0.0196 0.0299 0.0415 0.0223 2058 0.0347 0.0196 0.0299 0.0415 0.0223 PG&E Letter DCL-23-023 Page 3 of 4 2059 0.0347 0.0196 0.0299 0.0415 0.0223 2060 0.0347 0.0196 0.0299 0.0415 0.0223 2061 0.0347 0.0196 0.0299 0.0415 0.0223 2062 0.0347 0.0196 0.0299 0.0415 0.0223 2063 0.0347 0.0196 0.0299 0.0415 0.0223 2064 0.0347 0.0196 0.0299 0.0415 0.0223 2065 0.0347 0.0196 0.0299 0.0415 0.0223 2066 0.0347 0.0196 0.0299 0.0415 0.0223 2067 0.0347 0.0196 0.0299 0.0415 0.0223 2068 0.0347 0.0196 0.0299 0.0415 0.0223 2069 0.0347 0.0196 0.0299 0.0415 0.0223 2070 0.0347 0.0196 0.0299 0.0415 0.0223 2071 0.0347 0.0196 0.0299 0.0415 0.0223 2072 0.0347 0.0196 0.0299 0.0415 0.0223 2073 0.0347 0.0196 0.0299 0.0415 0.0223 2074 0.0347 0.0196 0.0299 0.0415 0.0223 2075 0.0347 0.0196 0.0299 0.0415 0.0223 2076 0.0347 0.0196 0.0299 0.0415 0.0223 Rate of Earnings on Decommissioning Funds PG&E has a assumed a 2 percent real rate of return on decommissioning funds as allowed by 10 CFR 50.75(E)(1)(i).
- 5. Any contracts upon which the licensee is relying pursuant to 10 CFR 50.75(e)(1)(v).
NONE
- 6. Any modifications to a licensees current method providing financial assurance occurring since the last submitted report.
NONE
- 7. Any material changes to trust agreements.
NONE
- 8. Current decommissioning cost estimate in Nominal/2023 dollars.
$ in Millions Total NRC Decommissioning Costs
$ 1,355.9 Scope Excluded from NRC calculations
$ 341.4 Spent Fuel Management
$ 471.1 Total Unit 1 (Decommission 2024)
$ 2,168.4 PG&E Letter DCL-23-023 Page 4 of 4
$ in Millions Total NRC Decommissioning Costs
$ 1,250.1 Scope Excluded from NRC calculations
$ 377.3 Spent Fuel Management
$472.7 Total Unit 2 (Decommission 2025)
$ 2,100.1 PG&E Letter DCL-23-023 Diablo Canyon Power Plant Unit 1 Decommissioning Cash Flow Estimated in Nominal/2023 Dollars (1 page)
Diablo Canyon Power Plant Unit 2 Decommissioning Cash Flow Estimated in Nominal/2023 Dollars (1 page)
27.072%
A B
C D
E F
G H
I Year BeginningofYear
TrustBalance LicenseTermination Site
Restoration SpentFuel
Management TotalCost
(Withdrawl)
Contributions(2)
Earnings(3)
EndofYear
TrustBalance I(previousyear)
C+D+E
((BF)*0.02)*(1 0.27072)
BF+G+H 2010 7,445
7,445
2011 55,564
55,564
2016 245,827
245,827
2017 3,375,033
3,375,033
2018 10,043,162
$
67,287
244,115
10,354,563
$
2019 2,175,207
954,087
963,249
4,092,543
2020 4,525,534
936,899
476,469
5,938,901
2021 5,588,431
1,167,364
1,142,647
7,898,443
2022 5,186,912
715,275
4,175,656
10,077,843
$
1,425,911,339
$
(4) 2023 1,425,911,339
$
16,667,155
$
4,524,723
27,514,861
$
48,706,739
$
20,087,355
$
1,397,291,955
$
2024 1,397,291,955
$
38,748,749
$
6,680,013
19,370,213
$
64,798,975
$
19,435,210
$
1,351,928,190
$
2025 1,351,928,190
$
232,475,076
$
5,408,885
40,484,297
$
278,368,259
$
15,658,516
$
1,089,218,447
$
2026 1,089,218,447
$
231,719,246
$
11,159,855
$
29,208,001
$
272,087,102
$
11,918,351
$
829,049,696
$
2027 829,049,696
$
211,201,451
$
12,799,260
$
6,073,163
230,073,875
$
8,736,422
$
607,712,244
$
2028 607,712,244
$
196,187,200
$
9,208,305
5,625,463
211,020,968
$
5,785,980
$
402,477,256
$
2029 402,477,256
$
137,419,533
$
39,980,647
$
4,946,146
182,346,326
$
3,210,742
$
223,341,672
$
2030 223,341,672
$
62,017,883
$
69,365,855
$
6,114,026
137,497,765
$
1,252,085
$
87,095,992
$
2031 87,095,992
$
51,840,776
$
56,058,275
$
5,010,518
112,909,569
$
(5) 2032
51,198,515
$
53,211,817
$
4,942,579
109,352,910
$
2033
47,513,678
$
52,061,908
$
5,188,596
104,764,182
$
2034
40,033,622
$
14,595,099
$
5,931,803
60,560,523
$
2035
7,723,037
983,909
8,591,815
17,298,760
$
2036
382,661
7,256,706
7,639,366
2037
382,586
6,881,168
7,263,753
2038
380,827
7,106,469
7,487,296
2039
392,237
6,258,766
6,651,003
2040
8,114,004
8,114,004
2041
6,258,014
6,258,014
2042
6,866,750
6,866,750
2043
6,304,604
6,304,604
2044
6,871,131
6,871,131
2045
7,525,157
7,525,157
2046
6,843,455
6,843,455
2047
6,258,014
6,258,014
2048
6,917,721
6,917,721
2049
6,281,309
6,281,309
2050
8,175,735
8,175,735
2051
6,258,014
6,258,014
2052
6,871,131
6,871,131
2053
6,281,309
6,281,309
2054
6,890,045
6,890,045
2055
7,548,452
7,548,452
2056
6,871,131
6,871,131
2057
6,258,014
6,258,014
2058
6,843,455
6,843,455
2059
6,281,309
6,281,309
2060
8,692,035
8,692,035
2061
7,138,296
7,138,296
2062
9,401,736
9,401,736
2063
9,274,248
9,274,248
2064
9,726,840
9,726,840
2065
10,419,042
$
10,419,042
$
2066
9,712,602
9,712,602
2067
17,326,944
$
17,326,944
$
2068
16,970,201
$
16,970,201
$
2069
15,276,082
$
15,276,082
$
2070
8,716,799
8,716,799
2071
2,199,052
2,199,052
2072
2,216,273
2,216,273
2073
1,284,936
1,284,936
2074
1,284,936
1,284,936
2075
1,347,498
1,347,498
2076
60,997
60,997
1,355,949,036
$
341,417,774
$
471,073,996
$
2,168,440,806
$
86,084,660
$
NOTES 1)
CashFlowassumesDepartmentofEnergy(DOE)UsedFuelRepositoryopensin2031,andpickupfromDCPPbeginsin2038.
2) 2021NDCTPasfiledcontributions.TherewerenocontributionstotheQualifiedNDT.
3)
Earningsassumea2%realrateofreturnanda27.072%effectivetaxrateonearnings.
4)
Liquidatedvalueofendofyear2022trustvalue.
5)
In2031whencostsexceedthetotalprojectedvalueoftheUnit1portionoftheNDT,PG&EanticipatestheUnit2portiontofundallworkthrough2034.
DiabloCanyonPowerPlantUnit1 DecommissioningCashFlow(1)
EstimatedinNominal/2023Dollars
27.072%
A B
C D
E F
G H
I Year BeginningofYear
TrustBalance LicenseTermination Site
Restoration SpentFuel
Management TotalCost
(Withdrawl)
Contributions(2)
Earnings(3)
EndofYear
TrustBalance I(previousyear)
C+D+E
((BF)*0.02)*(1 0.27072)
BF+G+H 2010 7,445
7,445
2011 55,564
55,564
2016 245,827
245,827
2017 3,375,033
3,375,033
2018 10,043,162
$
67,287
244,115
10,354,563
$
2019 2,175,207
954,087
963,249
4,092,543
2020 4,525,534
936,899
476,469
5,938,901
2021 5,588,431
1,167,364
1,142,647
7,898,443
2022 5,250,900
715,275
4,803,464
10,769,639
$
1,869,561,203
$
(4) 2023 1,869,561,203
$
16,951,328
$
4,524,723
27,514,861
$
48,990,912
$
26,554,110
$
1,847,124,401
$
2024 1,847,124,401
$
31,681,316
$
6,680,013
19,370,213
$
57,731,542
$
26,099,368
$
1,815,492,227
$
2025 1,815,492,227
$
160,430,891
$
5,408,885
30,653,496
$
196,493,273
$
23,614,071
$
1,642,613,025
$
2026 1,642,613,025
$
211,947,501
$
10,092,067
$
11,499,117
$
233,538,685
$
20,552,195
$
1,429,626,535
$
2027 1,429,626,535
$
153,913,907
$
12,743,600
$
25,061,716
$
191,719,222
$
18,055,621
$
1,255,962,933
$
2028 1,255,962,933
$
206,674,848
$
9,161,725
5,529,853
221,366,426
$
15,090,211
$
1,049,686,718
$
2029 1,049,686,718
$
175,883,042
$
40,686,438
$
4,946,146
221,515,626
$
12,079,372
$
840,250,465
$
2030 840,250,465
$
60,878,613
$
76,338,740
$
5,982,182
143,199,535
$
10,166,906
$
707,217,836
$
2031 707,217,836
$
52,868,373
$
63,558,476
$
4,825,936
121,252,785
$
8,546,652
$
568,698,125
$
(5) 2032 568,698,125
$
51,819,798
$
66,538,820
$
4,810,735
123,169,352
$
6,498,304
$
342,674,167
$
2033 342,674,167
$
48,037,301
$
60,629,468
$
5,151,041
113,817,809
$
3,338,007
$
127,430,183
$
2034 127,430,183
$
40,033,622
$
14,595,099
$
5,913,404
60,542,124
$
975,602
$
7,303,138
2035 7,303,138
7,723,037
983,909
8,632,734
17,339,680
$
2036
382,661
7,287,649
7,670,309
2037
382,586
6,887,786
7,270,372
2038
380,827
6,526,430
6,907,257
2039
392,237
6,849,130
7,241,368
2040
7,533,462
7,533,462
2041
6,848,354
6,848,354
2042
6,286,233
6,286,233
2043
6,894,993
6,894,993
2044
6,290,614
6,290,614
2045
8,115,497
8,115,497
2046
6,262,913
6,262,913
2047
6,848,354
6,848,354
2048
6,337,253
6,337,253
2049
6,871,674
6,871,674
2050
7,595,218
7,595,218
2051
6,848,354
6,848,354
2052
6,290,614
6,290,614
2053
6,871,674
6,871,674
2054
6,309,552
6,309,552
2055
8,006,397
8,006,397
2056
6,290,614
6,290,614
2057
6,980,773
6,980,773
2058
6,262,913
6,262,913
2059
6,871,674
6,871,674
2060
8,111,517
8,111,517
2061
7,728,660
7,728,660
2062
8,821,194
8,821,194
2063
9,864,588
9,864,588
2064
9,223,785
9,223,785
2065
10,930,973
$
10,930,973
$
2066
10,610,313
$
10,610,313
$
2067
22,908,610
$
22,908,610
$
2068
20,397,929
$
20,397,929
$
2069
15,276,082
$
15,276,082
$
2070
8,716,799
8,716,799
2071
2,199,052
2,199,052
2072
2,216,273
2,216,273
2073
1,284,936
1,284,936
2074
1,284,936
1,284,936
2075
1,347,498
1,347,498
2076
60,997
60,997
1,250,110,681
$
377,321,183
$
472,673,643
$
2,100,105,506
$
171,570,420
$
NOTES 1)
CashFlowassumesDepartmentofEnergy(DOE)UsedFuelRepositoryopensin2031,andpickupfromDCPPbeginsin2038.
2) 2021NDCTPasfiledcontributions.TherewerenocontributionstotheQualifiedNDT.
3)
Earningsassumea2%realrateofreturnanda27.072%effectivetaxrateonearnings.
4)
Liquidatedvalueofendofyear2022trustvalue.
5)
In2031whencostsexceedthetotalprojectedvalueoftheUnit1portionoftheNDT,PG&EanticipatestheUnit2portiontofundallworkthrough2034.
DiabloCanyonPowerPlantUnit2 DecommissioningCashFlow(1)
EstimatedinNominal/2023Dollars