HBL-12-006, Submittal of Decommissioning Funding Report

Submittal of Decommissioning Funding Report

ML12088A006
Person / Time
Site:	Humboldt Bay
Issue date:	03/21/2012
From:	Conway J Pacific Gas & Electric Co
To:	Document Control Desk, NRC/FSME
References
HBL-12-006
Download: ML12088A006 (24)

Text

-Pacific Gas and Electric Company' John Conway 77 Beale Street, B32 Senior Vice President San Francisco, CA 94105 Energy Supply and Chief Nuclear Officer 415.973.3336 Fax: 415.973.2313 Internet: jtch@pge.com March 21, 2012 PG&E Letter HBL-12-006 10 CFR 50.75 (f)

U.S. Nuclear Regulatory Commission ATTN: Document Control Desk Washington, DC 20555-0001 Docket No. 50-133, OP-DPR-7 Humboldt Bay Power Plant Unit 3 Decommissioning Funding Report for Humboldt Bay Power Plant Unit 3

Dear Commissioners and Staff:

PG&E is submitting the decommissioning funding report for Humboldt Bay Power Plant (HBPP) Unit 3, pursuant to the requirements of 10 CFR 50.75(f).

Humboldt Bay Unit 3 At the end of calendar year 2011, the market value of the HBPP Unit 3 (220 MWt) decommissioning trust funds was $301.8 million. PG&E estimates an additional $69.15 million (future nominal dollars) will need to be collected over three years beginning in 2010 based on a site-specific decommissioning cost estimate prepared by TLG Services, Inc. and approved by the California Public Utilities Commission (CPUC) per Decision D.10-07-047. The CPUC Application is based on an Independent Spent Fuel Storage Installation (ISFSI) that would be in operation until 2020 when all fuel would be removed from HBPP by the Department of Energy (DOE).

The market value of the HBPP trust is lower than the minimum amount of the NRC decommissioning estimate of $645.4 million (2012 dollars) that was calculated pursuant to the requirements specified in 10 CFR 50.75(c), which is based on a minimum 1200 MWt plant. This is due to $188.3 million having been spent on decommissioning activities through December 2011 and an estimate to complete of

$256.5 million for the NRC radiological scope.

PG&E is confident the HBPP trust, with the noted additional contributions, will be sufficient to ensure successful decommissioning and maintaining the spent fuel in an ISFSI at HBPP until 2020, based on a March 2009 site-specific decommissioning cost estimate prepared by TLG Services, Inc. and approved by the CPUC Decision D.10-07-047.

Supporting Cost Estimates Based on a March 2009 site-specific cost estimate prepared by TLG Services, Inc. PG&E has estimated that the decommissioning costs are approximately $562.4 million (including $188.3 million disbursed from the Trust(s) through December 2011 and $256.5 million future radiological removal costs) for HBPP Unit 3 in 2012 dollars. These costs do not include site restoration of the facilities

($2.8 million), nor spent fuel management until 2020 ($114.8 million).

Document Control Desk PG&E Letter HBL-12-006 March 21, 2012 Page 2 To assure that sufficient funds will be available for decommissioning, PG&E has established external sinking trust fund accounts for HBPP Unit 3.

Supportingq Enclosures Supporting documentation for this report is included as Enclosures 1 through 4. provides decommissioning funding status information in a format suggested by Nuclear Energy Institute (NEI) and the NRC. provides information on the escalation of the required decommissioning funding amounts to 2011 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 14, the information includes escalation factors for energy, labor, and waste burial costs. is Appendix D from the TLG Services, Inc. decommissioning cost estimate report prepared in March 2009 for PG&E for HBPP Unit 3. The TLG Services, Inc. cost estimate has then been adjusted to reflect the costs in 2012 dollars per the CPUC Decision D. 10-07-047. The report provides cost estimates for decommissioning of NRC scope (radiological), non-NRC scope (non-radiological), and spent fuel management, including operation of the ISFSI. is a cash flow of the total decommissioning of HBPP that identifies the monies for NRC scope (removal of radiological contamination), site restoration (including the non-radiological work) and the spent fuel management.

There are no regulatory commitments in this letter.

Should you have any questions in regard to this document please feel free to call Bob Kapus at (707) 444-0810.

Sincerely, way Senior Vice Presiden -

gy Supply & CNO Enclosures cc/enc:

Elmo E. Collins, Jr.

John B. Hickman INPO HBPP Humboldt Distribution PG&E Letter HBL-12-006 NRC Decommissioning Funding Status Report Humboldt Bay Power Plant - Unit 3 (220 MWt)

(2 pages)

PG&E Letter HBL-12-006 NRC Decommissioning Funding Status Report Humboldt Bay Power Plant - Unit 3 (220 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 March 31, 1999, and annually thereafter, on the status of its decommissioning funding for each reactor that it owns and has already closed.

$ in Millions

1. The minimum decommissioning fund estimate, pursuant to 10 CFR 50.75 (b) and (c).1 January 2012 dollars

$ 645.4 (HBPP is a shutdown unit with a Site Specific Cost Study; therefore, the minimum decommissioning fund estimate is based on the Site Specific Cost Study shown in item 8 of this enclosure.)

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 2011 dollars)

$ 301.8

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). All values below are from 2009 NDCTP filing, Final Decision D.10-07-047.

Amount remaining

$69.15 Number of years to collect beginning in 2010 3 years Annual amount to be collected

$ 23.05 1 The NRC formulas in section 10CFR50.75(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 transfers to DOE are not included in the cost formulas.

1 PG&E Letter HBL-12-006

4. The assumptions used regarding escalation in decommissioning cost, rates of earnings on decommissioning funds (assumes trust will be gradually converted to a more conservative, all fixed income portfolio after 2010), and rates of other factors used in funding projections (all values below are from the 2009 NDCTP filing).

Escalation in decommissioning costs Rate of Return on Qualified Trust 2012 Rate of Return on Qualified Trust 2013 Rate of Return on Qualified Trust (2014-2020)

Rate of Return on Non-Qualified Trust 2012 Rate of Return on Non-Qualified Trust 2013 Rate of Return on Non-Qualified Trust (2014-2020)

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

6. Any modifications to a licensee's current method providing financial assurance occurring since the last submitted report.

7. Any material changes to trust agreements.

3.34 percent 2.95 percent 2.95 percent 2.95 percent 2.95 percent 2.95 percent None None None

8. CPUC Submittal in 2012 Dollars in Millions:

Total Project (Decommission 2012)

Scope Excluded from NRC calculations Scope of ISFSI from Licensing to Decommissioning in 2020 Scope Decommissioned and disbursed from Trust(s)

Total NRC Decommissioning Remaining Scope 562.4 2.8 114.8 188.3 256.5 2

PG&E Letter HBL-12-006 2012 Decommissioning Estimate (1 page)

• Composite Escalation (1 page)

• Development of E Component (3 pages)

• Development of L Component (2 pages)

" Development of B Component (1 page)

2012 Decommisioning Estimate PG&E Letter HBL-12-006 Nuclear Regulatory Commission Estimate of Decommission Costs for Boiling Water Reactor (BWR)

In 2012 HBPP BWR

($ in millions)

$114.80 Jan 1986 Estimate Escalated to 1999 Escalated to 2000 Escalated to 2001 Escalated to 2002 Escalated to 2003 Escalated to 2004 Escalated to 2005 Escalated to 2006 Escalated to 2007 Escalated to 2008 Escalated to 2009 Escalated to 2010 Escalated to 2011 Escalated to 2012 (Table 2.1 in NUREG 1307 Rev 14 128.9 has no value for 1999 Burial) 400.2 ($360.9 in 2000 Submittal) 354.1 ($425.3 in 2001 Submittal) 357.4 ($445.6 in 2002 Submittal) 373.8 ($430.1 in 2003 Submittal) 388.0 ($439.6 in 2004 Submittal) 416.8 ($453.2 in 2005 Submittal) 519.2 ($494.3 in 2006 Submittal) 550.3 ($548.6 in 2007 Submittal) 564.4 ($590.9 in 2008 Submittal) 574.2 ($573.8 in 2009 Submittal) 594.5 ($596.6 in 2010 Submittal) 618.9 ($619.0 in 2011 Submittal) 645.4 Jan 1986 based on 10 CFR 50.75 (c) Table of minimum amounts BWR based on minimum 1200 MWt = ($104 + (.009xMWt)) million per unit where BWR less than 1200 MWt use P=1200 MWt, HBPP 220 MWt Page 1

Composite Escalation PG&E Letter HBL-12-006 Calculating Overall Escalation Rate BWR Dec-05 Dec-06 Dec-07 Dec-08 Dec-09 Dec-10 Dec-11 Weight (1)

L (Labor)

E (Energy)

B (Burial) 2.0600 2.1218 2.1939 2.2536 2.2784 2.3175 2.3711 1.9106 1.9808 2.4513 1.8323 2.0402 2.3945 2.7733 13.3331 14.3491 14.4164 14.9931 15.6028 16.2425 16.9085 0.65 0.13 0.22 (1) from NUREG 1307 Revision 14, Report on Waste Burial Charges, Section 2 Summary, Page 3... where A, B, and C are the fractions of the total 1986 dollar costs that are attributable to labor (0.65), energy (0.13), and burial (0.22), respectively, and sum to 1.0.

BWR Combined Escalation Rate for:

Dec-07 Dec-08 Dec-09 Jan-10 Jan-11 Jan-12 4.7935 4.9163 5.0015 5.1788 5.3910 5.6ý216 Page 2

Development of E Component PG&E Letter HBL-12-006 Calculation of Energy Escalation Factor - Reference NUREG-1307, Revision 14, Section 3.2 Using Regional Indices SERIES ID: WPU0573 Light Fuel Oils (as of 02/23/12) and WPU0543 Industrial Electric Power (as of 02/23/12)

REBASED TO 1986 = 100 PPI for Fuels &

PPI for Light PPI for Fuels &

PPI for Light Related Products Fuel Oils Related Products Fuel Oils (2000 = 100)

(2000=100)

(2000 = 100)

(2000=100)

(P) =Industrial Energy Power (F) = Light Fuel Oils (P) =Industrial Energy Power (F) = Light Fuel Oils BWR wt =

0.54 BWR wt =

0.46 Energy Escalation Factor (E) for BWR (Humboldt)

Dec-99 Jan-00 Feb-00 Mar-00 Apr-00 May-00 Jun-00 Jul-00 Aug-00 Sep-00 Oct-00 Nov-00 Dec-00 Jan-01 Feb-01 Mar-01 Apr-01 May-01 Jun-01 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-03 126.5 126.8 126.7 126.7 126.8 128.6 133.6 136.2 137.4 137.8 134.1 130.9 132.7 136.4 136.4 136.5 135.1 136.2 148.4 149.5 148.9 148.2 143.8 137.3 136.9 136.3 135.4 135.7 135.4 137.9 143.6 144.9 145.0 145.8 140.0 139.5 139.6 140.3 140.6 143.3 144.3 145.1 148.3 151.6 151.3 152.0 147.4 142.7 142.9 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 81.3 83.2 93 76.8 70.5 56.6 58.3 59.6 69.1 76.4 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 1.0000 1.0024 1.0016 1.0016 1.0024 1.0166 1.0561 1.0767 1.0862 1.0893 1.0601 1.0348 1.0490 1.0783 1.0783 1.0791 1.0680 1.0767 1.1731 1.1818 1.1771 1.1715 1.1368 1.0854 1.0822 1.0775 1.0704 1.0727 1.0704 1.0901 1.1352 1.1455 1.1462 1.1526 1.1067 1.1028 1.1036 1.1091 1.1115 1.1328 1.1407 1.1470 1.1723 1.1984 1,1960 1.2016 1.1652 1.1281 1.1296 1.0000 1.0329 1.2058 1.2305 1.1399 1.1372 1.1824 1.2167 1.2565 1.5103 1.4897 1.4870 1.3800 1.3182 1.2565 1.1399 1.1824 1.2922 1.2373 1.1152 1.1413 1.2757 1.0535 0.9671 0.7764 0.7997 0.8176 0.9479 1.0480 1.0288 0.9794 1.0357 1.0686 1.2277 1.3045 1.1358 1.1605 1.3128 1.6516 1.7682 1.3484 1.1728 1.1962 1.2359 1.2908 1.2099 1.3416 1.2757 1.3141 1.0000 1.0164 1.0955 1.1069 1.0656 1.0721 1.1142 1.1411 1.1645 1.2830 1.2577 1.2428 1.2013 1.1887 1.1603 1.1070 1.1206 1.1758 1.2026 1.1512 1.1606 1.2195 1.0985 1.0310 0.9415 0.9497 0.9541 1.0153 1.0601 1.0619 1.0635 1.0950 1.1105 1.1871 1.1977 1.1180 1.1297 1.2028 1.3599 1.4251 1.2363 1.1589 1.1833 1.2157 1.2396 1.2054 1.2463 1.1960 1.2145 Page 3

Development of E Component PG&E Letter HBL-12-006 Calculation of Energy Escalation Factor - Reference NUREG-1307, Revision 14, Section 3.2 Using Regional Indices SERIES ID: WPU0573 Light Fuel Oils (as of 02/23/12) and WPU0543 Industrial Electric Power (as of 02/23/12)

REBASED TO 1986= 100 PPI for Fuels &

PPI for Light PPI for Fuels &

PPI for Light Related Products Fuel Oils Related Products Fuel Oils (2000 = 100)

(2000=100)

(2000 = 100)

(2000=100)

(P) -industrial Energy Power (F) = Light Fuel Oils (P) =Industrial Energy Power (F) = Light Fuel Oils BWR wt =

0.54 BWR wt =

0.46 Jan-04 143.1 106.8 1.1312 1.4650 Feb-04 143.1 100.8 1.1312 1.3827 Mar-04 143.1 107.8 1.1312 1.4787 Apr-04 143.1 115.2 1.1312 1.5802 May-04 144.2 116 1.1399 1.5912 Jun-04 152.4 111.5 1.2047 1.5295 Jul-04 152.2 119.3 1.2032 1.6365 Aug-04 154.0 131.1 1.2174 1.7984 Sep-04 154.0 136.8 1.2174 1.8765 Oct-04 145.8 161.7 1.1526 2.2181 Nov-04 144.9 153.6 1.1455 2.1070 Dec-04 146.2 133.8 1.1557 1.8354 Jan-05 148.9 138.5 1.1771 1.8999 Feb-05 148.0 146 1.1700 2.0027 Mar-05 148.1 169.4 1.1708 2.3237 Apr-05 148.7 170.9 1.1755 2.3443 May-05 151.1 165.3 1.1945 2.2675 Jun-05 159.7 180.6 1.2625 2.4774 Jul-05 162.1 186.2 1.2814 2.5542 Aug-05 162.5 194.5 1.2846 2.6680 Sep-05 162.8 209.9 1.2870 2.8793 Oct-05 159.5 252.0 1.2609 3.4568 Nov-05 161.1 199.1 1.2735 2.7311 Dec-05 161.4 193.6 1.2759 2.6557 Jan-06 167.0 191.8 1.3202 2.6310 Feb-06 168.6 190.0 1.3328 2.6063 Mar-06 167.4 199.2 1.3233 2.7325 Apr-06 169.6 221.9 1.3407 3.0439 May-06 170.8 231.4 1.3502 3.1742 Jun-06 181.2 238.1 1.4324 3.2661 Jul-06 181.9 231.6 1.4379 3.1770 Aug-06 180.2 241.4 1.4245 3.3114 Sep-06 181.0 203.1 1.4308 2.7860 Oct-06 171.2 198.1 1.3534 2.7174 Nov-06 167.2 198.2 1.3217 2.7188 Dec-06 167.8 200.4 1.3265 2.7490 Jan-07 171.9 180.0 1.3589 2.4691 Feb-07 175.7 191.5 1.3889 2.6269 Mar-07 172.1 215.1 1.3605 2.9506 Apr-07 173.1 231.8 1.3684 3.1797 May-07 179.2 225.3 1.4166 3.0905 Jun-07 186.7 222.4 1.4759 3.0508 Jul-07 187.0 237.8 1.4783 3.2620 Aug-07 187.6 225.5 1.4830 3.0933 Sep-07 188.4 238.9 1.4893 3.2771 Oct-07 182.7 243.3 1.4443 3.3374 Nov-07 180.3 288.2 1.4253 3.9534 Dec-07 180.0 266.7 1.4229 3.6584 Jan-08 181.9 273.8 1.4379 3.7558 Feb-08 180.0 280.2 1.4229 3.8436 Energy Escalation Factor (E) for BWR (Humboldt) 1.2848 1.2469 1.2911 1.3378 1.3475 1.3541 1.4025 1.4846 1.5206 1.6427 1.5878 1.4684 1.5096 1.5530 1.7011 1.7131 1.6881 1.8213 1.8669 1.9210 2.0194 2.2710 1.9440 1.9106 1.9231 1.9186 1.9715 2.1242 2.1892 2.2759 2.2379 2.2925 2.0542 1.9808 1.9644 1.9808 1.8696 1.9584 2.0919 2.2016 2.1866 2.2003 2.2988 2.2237 2.3117 2.3151 2.5882 2.4513 2.5042 2.5364 Page 4

Development of E Component PG&E Letter HBL-12-006 Calculation of Energy Escalation Factor - Reference NUREG-1307, Revision 14, Section 3.2 Using Regional Indices SERIES ID: WPU0573 Light Fuel Oils (as of 02/23/12) and WPU0543 Industrial Electric Power (as of 02123/12)

REBASED TO 1986 = 100 PPI for Fuels &

PPI for Light PPI for Fuels &

PPI for Light Related Products Fuel Oils Related Products Fuel Oils (2000 = 100)

(2000=100)

(2000 = 100)

(2000=100)

(P) =Industrial Energy Power (F) = Light Fuel Oils (P) =Industrial Energy Power (F) = Light Fuel Oils BWR wt =

0.54 BWR wt =

0.46 Mar-08 183.1 339.6 1.4474 4.6584 Apr-08 185.2 352.5 1.4640 4.8354 May-08 189.5 384.9 1.4980 5.2798 Jun-08 191.9 410.5 1.5170 5.6310 Jul-08 196.1 423.8 1.5502 5.8134 Aug-08 197.1 343.9 1.5581 4.7174 Sep-08 195.9 335.1 1.5486 4.5967 Oct-08 193.0 279.0 1.5257 3.8272 Nov-08 187.7 218.2 1.4838 2.9931 Dec-08 188.3 163.0 1.4885 2.2359 Jan-09 190.3 159.8 1.5043 2.1920 Feb-09 190.3 145.6 1.5043 1.9973 Mar-09 187.6 136.8 1.4830 1.8765 Apr-09 186.9 159.9 1.4775 2.1934 May-09 190.5 158.6 1.5059 2.1756 Jun-09 193.3 183.7 1.5281 2.5199 Jul-09 196.2 165.2 1.5510 2.2661 Aug-09 194.7 196.1 1.5391 2.6900 Sep-09 194.9 186.6 1.5407 2.5597 Oct-09 189.9 193.3 1.5012 2.6516 Nov-09 186.0 207.8 1.4704 2.8505 Dec-09 186.0 197.5 1.4704 2.7092 Jan-10 186.3 220.7 1.4727 3.0274 Feb-10 186.1 200.2 1.4711 2.7462 Mar-10 189.0 217.0 1.4941 2.9767 Apr-10 188.8 231.5 1.4925 3.1756 May-10 192.0 226.0 1.5178 3.1001 Jun-10 197.8 212.4 1.5636 2.9136 Jul-10 199.8 209.3 1.5794 2.8711 Aug-10 200.8 221.4 1.5874 3.0370 Sep-10 200.0 220.0 1.5810 3.0178 Oct-10 194.6 235.8 1.5383 3.2346 Nov-10 190.9 245.3 1.5091 3.3649 Dec-10 191.4 250.0 1.5130 3.4294 Jan-11 193.1 260.4 1.5265 3.5720 Feb-11 194.4 278.8 1.5368 3.8244 Mar-11 195.0 307.5 1.5415 4.2181 Apr-11 194.1 325.1 1.5344 4.4595 May-11 196.9 315.1 1.5565 4.3224 Jun-11 205.7 316.9 1.6261 4.3471 Jul-11 215.3 311.5 1.7020 4.2730 Aug-11 216.6 296.9 1.7123 4.0727 Sep-11 215.8 306.5 1.7059 4.2044 Oct-11 205.3 299.4 1.6229 4.1070 Nov-11 205.1 323.7 1.6213 4.4403 Dec-11 204.0 301.5 1.6126 4.1358 Energy Escalation Factor (E) for BWR (Humboldt) 2.9245 3.0149 3.2377 3.4094 3.5113 3.0114 2.9507 2.5844 2.1781 1.8323 1.8207 1.7311 1.6640 1.8068 1.8140 1.9843 1.8799 2.0685 2.0094 2.0304 2.1052 2.0402 2.1879 2.0577 2.1761 2.2667 2.2457 2.1846 2.1736 2.2542 2.2420 2.3186 2.3628 2.3945 2.4674 2.5891 2.7727 2.8800 2.8288 2.8777 2.8846 2.7981 2.8552 2.7656 2.9181 2.7733 Oct 11 through Dec 11 are Preliminary Values from PPI Indices Page 5

Development of L Component PG&E Letter HBL-12-006 Calculation of Labor Escalation Factor - Reference NUREG-1 307, Revision 14, Section 3.1 Using Regional Indices SERIES ID: CIU20100000002401 (as of 02/23/12)

Note 1: The Base Labor factor was re-indexed in December 2005, at which time the index was reset to 100.

Employment Cost Indust West Region Labor Private Industry Escalation (2005=100)

Factor Dec-05 100 2.06000 Jan-06 Feb-06 Mar-06 100.6 2.07236 Apr-06 May-06 Jun-06 101.8 2.09708 Jul-06 Aug-06 Sep-06 102.5 2.11150 Oct-06 Nov-06 Dec-06 103 2.12180 Jan-07 Feb-07 Mar-07 104.2 2.14652 Apr-07 May-07 Jun-07 104.9 2.16094 Jul-07 Aug-07 Sep-07 105.7 2.17742 Oct-07 Nov-07 Dec-07 106.5 2.19390 Jan-08 Feb-08 Mar-08 107.8 2.22068 Apr-08 May-08 Jun-08 108.4 2.23304 Jul-08 Aug-08 Sep-08 109.3 2.25158 Oct-08 Nov-08 Dec-08 109.4 2.25364 Jan-09 Feb-09 Mar-09 109.9 2.26394 Apr-09 May-09 Jun-09 110 2.26600 Jul-09 Aug-09 Sep-09 110.3 2.27218 Oct-09 Nov-09 Page 6

Development of L Component PG&E Letter HBL-12-006 Calculation of Labor Escalation Factor - Reference NUREG-1307, Revision 14, Section 3.1 Using Regional Indices SERIES ID: CIU20100000002401 (as of 02/23/12)

Note 1: The Base Labor factor was re-indexed in December 2005, at which time the index was reset to 100.

Employment Cost Indust West Region Labor Private Industry Escalation (2005=100)

Factor Dec-05 100 2.06000 Dec-09 110.6 2.27836 Jan-10 Feb-10 Mar-10 111.3 2.29278 Apr-1 0 May-10 Jun-10 111.7 2.30102 Jul-10 Aug-10 Sep-10 112.3 2.31338 Oct-10 Nov-1 0 Dec-10 112.5 2.31750 Jan-11 Feb-11 Mar-11 113.5 2.33810 Apr-11 May-11 Jun-11 114.3 2.35458 Jul-1i Aug-11 Sep-11 114.6 2.36076 Oct-11 Nov-11 Dec-11 115.1 2.37106 Page 7

Development of B Component PG&E Letter HBL-12-006 Development of Burial Escalation Developed from NUREG-1 307 Revision 14 Table 2.1 "VALUES OF B SUB-X AS A FUNCTION OF LLW BURIAL SITE, WASTE VENDOR, AND YEAR" (Summary for non-Atlantic Compact)

Revised to Bx Values for Generic LLW Disposal Site are assumed to be thje same as that provided for the Atlantic Compact, for lack of a better alternative at this time BWR BWR Burial Costs Restated to (South Carolina) 1986 = 100 1986 1987 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 1.561 1.831 2.361 9.434 9.794 10.42 10.379 13.837 13.948 16.244 16.474 16.705 17.326 17.970 19.339 20.813 22.399 22.504 23.404 24.356 25.355 26.394 1.0000 1.1730 1.5125 6.0436 6.2742 6.6752 6.6489 8.8642 8.9353 0.0000 10.4061 10.5535 10.7015 11.0993 11.5119 12.3889 13.3331 14.3491 14.4164 14.9931 15.6028 16.2425 16.9085 Table 2.1 Note ('c) From 7/1/95 through 6/30/2000 access was allowed for all states except North Carolina. Effective 7/11/2000 rates are based on whether a waste generator is or is not a member of the Atlantic Compact.

2001 has no information in NUREG-1307 Rev 12. 2001 is an estimate that is calculated by applying the average % change between 2000 and 2002 and adding to the 2000 base 2003 has no information in NUREG-1307 Rev 12. 2003 is an estimate that is calculated by applying the average % change between 2002 and 2004 and adding to the 2002 base 2005 has no information in NUREG-1307 Rev 12. 2005 is an estimate that is calculated by applying the average % change between 2004 and 2006 and adding to the 2004 base.

2007 has no information in NUREG-1307 Rev 12. 2007 is an estimate that is calculated by applying the average % change between 2004 and 2006 and adding to the 2006 base.

2008 has no information in NUREG-1307 Rev 12. 2008 is an estimate that is calculated by applying the average % change between 2004 and 2006 and adding to the 2007 base.

2009 has no information in NUREG-1307 Rev 13. 2009 is an estimate that is calculated by applying the average % change between 2006 and 2008 and adding to the 2008 base.

2010 has no information in NUREG-1307 Rev 13. 2010 is an estimate that is calculated by applying the average % change between 2006 and 2008 and adding to the 2008 base 2011 has no information in NUREG-1 307 Rev 14. 2011 is an estimate that is calculated by applying the average % change between 2008 and 2010 and adding to the 2010 base 2012 has no information in NUREG-1307 Rev 14. 2012 is an estimate that is calculated by applying the average % change between 2008 and 2010 and adding to the 2011 estimate Page 8 PG&E Letter HBL-12-006 Humboldt Bay Power Plant Unit 3 Decommissioning Cost Study Area-By-Area Estimate (7 pages)

Humboldt Bay Po-er Plant Unit 3 Ebn-e 3

DecomLioning Cost Study PG&E Letter HBL-12-006 TLG Services Io, Appendix D

Humboldt Bay Power Plant, Unit 3 AREA-BY-AREA ESTIMATE I

Humbokdt Bay Poer Pta,, UM 3 Encl-e 3 Deconrrftonhn Cos Study PG&E Lefer HBL-I2-006 TLG S1e-oft, Appeod' 0 Humboldt Bay Power Plant, Unit 3 AREA-BY-AREA ESTIMATE 4Z.4.1

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Humboldt Bay Power Plant. Unit 31

Humboldt Bay Power Pant Unit 3 Encloure 3 D

-onniseonrng Cost Study PG&E Letter HBL-12-*O TLG Serices Inc. Appendix D Humboldt Bay Power Plant, Unit 3 AREA-BY-AREA ESTIMATE PG&E Letter HBL-12-006 Humboldt Bay Power Plant Unit 3 Decommissioning Cash Flow (Estimated in 2012 Dollars)

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Humboldt Bay Power Plant Unit 3 Decommissioning Cash Flow (Note 1)

(Estimated in 2012 Dollars)

PG&E Letter HBL-12-006 Non-NRC NRC Scope Scope (Non-(Radiological)

Radiological)

Year 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020

$1,678,452

$8,663,216

$5,573,757

$723,490

$85,241

$89,543

$994,127

$494,838

$491,070

$161,506

$1,073,612

$4,474,247

$12,590,383

$32,901,391

$56,957,494

$60,585,531

$76,442,100

$81,341,000

$47,849,900

$42,355,200

$5,770,152

$0

$0

$0

$3,436,072 ISFSI Engr/License Construction Operation (Note 1)

$344,408

$2,281,454

$2,736,091

$398,012

$113,704

$2,539,476

$1,444,628

$1,671,769

$3,546,617

$9,240,172

$28,485,988

$3,179,956

$5,734,776

$5,495,157

$5,354,800

$5,354,800

$5,354,800

$5,354,800

$5,354,800

$5,354,800

$5,354,800

$5,354,800

$4,752,385

$114,802,991 Total

$1,678,452

$8,663,216

$5,918,165

$3,004,944

$2,821,331

$487,555

$1,107,831

$3,034,313

$1,935,698

$1,833,274

$4,620,229

$13,714,418

$41,076,371

$36,081,347

$62,692,270

$66,080,688

$81,796,900

$86,695,800

$54,528,400

$49,033,700

$11,321,900

$5,354,800

$5,354,800

$5,354,800

$8,188,457

$562,379,660 Cummulative Decommission Estimate

$1,678,452

$10,341,669

$16,259,834

$19,264,778

$22,086,109

$22,573,664

$23,681,495

$26,715,809

$28,651,506

$30,484,781

$35,105,009

$48,819,428

$89,895,799

$125,977,145

$188,669,415

$254,750,103

$336,547,003

$423,242,803

$477,771,203

$526,804,903

$538,126,803

$543,481,603

$548,836,403

$554,191,203

$562,379,660 Trust Account Funding (Note 2)

$254,750,103

$556,511,426

$566,044,490

$1,323,700

$1,323,700

$196,948 TOTAL

$444,732,321

$2,844,348 Notes:

1)

Cash Flow is based on construction of ISFSI and Fuel removed from HBPP in 2020 (Assumes DOE Used Fuel Repository opens 2020 allowing HBPP Fuel to be shipped during 2020)

2)

Trust Account Value of $311.3 million is Expense Equivalent Liquidation Value (Includes Tax Break)

Market Value of Trust as of 12/11 was $301.8 million, actual expended as of 12/11 was $254.8 million 1