ML030860305

Unit, 1.10 CFR 50.75(f)(1) Decommissioning Funding Report

ML030860305
Person / Time
Site:	San Onofre
Issue date:	03/25/2003
From:	Scherer A Southern California Edison Co
To:	Document Control Desk, NRC/FSME
References
+sispmjr200504, -RFPFR
Download: ML030860305 (3)

Text

1 SOUTHERN CALIFORNIA A. Edward Scherer Manager of IJE DISON0 Nuclear Regulatory Affairs An EDISON INTERNATIONAL Company March 25, 2003 U. S. Nuclear Regulatory Commission Document Control Desk Washington, D. C. 20555

Subject:

Docket No. 50-206 10 CFR 50.75(f)(1) Decommissioning Funding Report San Onofre Nuclear Generating Station Unit I Gentlemen:

As required by 10 CFR 50.75(f)(1), this letter provides the status of the decommissioning funding for San Onofre Unit 1 as of December 31, 2002. The required information is provided in the enclosure for Southern California Edison (SCE) and San Diego Gas & Electric for San Onofre Unit 1. Based on the requirements in 10 CFR 50.75(f)(1), this information is reported on an annual basis for San Onofre Unit 1 since the plant was permanently shut down before the end of its licensed life and is currently being decommissioned.

Ifyou should have any questions regarding this matter, please feel free to contact me.

Sincerely, Enclosure cc: E. W. Merschoff, Regional Administrator, NRC Region IV W. C. Huffman, NRC Project Manager, San Onofre Unit 1 R. S. Wood, NRC/DRPM/PGEB D. B. Spitzberg, NRC Region IV C. C. Osterholtz, NRC Senior Resident Inspector, San Onofre Units 2 and 3 P.O. Box 128 San Clemente, CA 92674-0128 /UP-SSD/

949-368-7501 Fax 949-368-7575

San Onofre Nuclear Generating Station Unit 1 Decommissioning Funding Status Report Provided below is the information required by 10 CFR 50.75(f)(1) for San Onofre Unit 1.

This information is reported every year for San Onofre Unit 1 because it was permanently shut down before the end of its licensed life and is currently being decommissioned.

All dollar amounts are in 2002 dollars, and the owners are reported as follows:

Southern California Edison (SCE) 80 %

San Diego Gas & Electric (SDG&E) 20 %

1) The decommissioning fund estimated to be required pursuant to 10 CFR 50.75(b) and (c) is the following:

a) The minimum amount calculated by the method prescribed by 10 CFR 50.75(c) is $304.3 million.

b) The San Onofre Unit I site-specific estimate (1)(3)for decommissioning includes the following radiological decommissioning costs associated with terminating the site license:

San Onofre Unit 1 Estimate of Radiological Costs $ 407.3 million Actual RadiologicalCosts through 12/31/2002 $ 167.5 million To Go Costs $ 239.8 million The To Go Costs reflect the remaining obligation for the radiological costs associated with terminating the site license.

2) The Decommissioning Trust Fund amount remaining at the end of calendar year 2002 (net of estimated capital gains taxes) is:

Owner San Onofre Unit 1 SCE $ 274,570,000 SDG&E (2) $ 107,721,000 TOTAL $ 382,291,000

3) The decommissioning fund for San Onofre Unit 1 is sufficient to provide for the estimated decommissioning costs, and as of June 1999, decommissioning funds are no longer collected.

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San Onofre Nuclear Generating Station Unit 1 Decommissioning Funding Status Report

4) The composite escalation rates for San Onofre Unit 1 Decommissioning are forecast as follows:

Burial Costs 0.00 % (Fixed price, no escalation, contract through 2008)

Other Costs 3.02 %

The composite escalation rate is 2.73% for all costs.

5) The investment rate of return for the Decommissioning Trust Funds are forecast as follows:

SCE (3) 3.98 %

SDG&E (2)(3) 5.17%

The composite investment rate is 4.32 %. The composite investment rate of return less the composite escalation rate yields a composite real earnings rate less than the 2 % real rate of return allowed under 10 CFR 50.75(e)(1)(ii).

6) None of the owners of San Onofre Unit 1 are relying on any contracts for the purposes of providing decommissioning funding pursuant to 10 CFR 50.75(e)(1)(v).

There have been no modifications to the method of providing financial assurance and no material changes to the trust agreements since the March 25, 2002 Decommissioning Funding Report for San Onofre Unit 1.

Notes: (1) The site-specific decommissioning cost estimate for San Onofre Unit 1 that was provided to the California Public Utilities Commission (CPUC) on March 21, 2002, includes the radiological costs associated with terminating the site license, non radiological costs, and fuel storage costs.

(2) SCE is submitting information with respect to its co-owner, SDG&E. SDG&E is responsible for the completeness and accuracy of their information (3) As of the date of this letter, the CPUC has not approved the March 21, 2002 filing.

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