ML090990428

10 CFR 50.75(f)(1) Decommissioning Funding Report

ML090990428
Person / Time
Site:	San Onofre
Issue date:	03/31/2009
From:	Scherer A Southern California Edison Co
To:	Document Control Desk, Office of Nuclear Reactor Regulation
References
Download: ML090990428 (4)

Text

A. Edward Scherer JSOUTHERN EDISON CALIFORNIA An EDISON INTERNATIONAL Company Director Nuclear Regulatory Affairs March 31, 2009 U. S. Nuclear Regulatory Commission ATTN: Document Control Desk Washington, D. C. 20555

Subject:

Docket Nos. 50-361 and 50-362 10 CFR 50.75(f)(1) Decommissioning Funding Report San Onofre Nuclear Generating Station Units 2 and 3

Dear Sir or Madam:

As required by 10 CFR 50.75(f)(1), this letter provides the status of the decommissioning funding for San Onofre Units 2 and 3 as of December 31, 2008. The required information is provided in the enclosure for SCE, San Diego Gas & Electric and the Cities of Anaheim and Riverside. Based on the requirements in 10 CFR 50.75(f)(1),

SCE is reporting this information for San Onofre Units 2 and 3 on a biennial basis.

There are no new commitments contained in this letter or its enclosure.

If you have any questions regarding this matter, please feel free to contact Ms. Linda Conklin at 949-368-9443.

Sincerely,

Enclosure:

San Onofre Units 2 and 3 Decommissioning Funding Status Report cc: E. E. Collins, Regional Administrator, NRC Region IV N. Kalyanam, NRC Project Manager, San Onofre Units 2 and 3 G. G. Warnick, NRC Senior Resident Inspector, San Onofre Units 2 and 3 Aow P.O. Box 128 San Clemente, CA 92674

San Onofre Nuclear Generating Station Units 2 and 3 Decommissioning Funding Status Report Provided below is the information required by 10 CFR 50.75(f)(1) for San Onofre Units 2 and 3. This information is reported every other year for San Onofre Units 2 and 3 as required for operating plants.

All dollar amounts are in 2008 dollars, and the owners are reported as follows:

Southern California Edison (SCE) 78.21%

San Diego Gas & Electric (SDG&E) 20.00%

City of Anaheim (Anaheim) 0.00%

City of Riverside (Riverside) 1.79%

The decommissioning liability is shared between the current owners and former owner, Anaheim, as set forth below for each unit:

Owner Unit 2 Decommissioning Unit 3 Decommissioning Liability Liability SCE 76.30% 176.35%

SDG&E 20.00% 20.00%

Anaheim 1.91 % 1.86%

Riverside 1.79 % 1.79%'

1) The decommissioning fund estimated to be required pursuant to 10 CFR Kr;.

':50.75(b) and (c) is the following:

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

San Onofre Unit 2 San Onofre Unit 3

$ 415.9 million $ 415.9 million b) The San Onofre Units 2 and 3 site-specific estimate (1)for decommissioning includes the following radiological decommissioning costs associated with terminating the site license:

San Onofre Unit 2 San Onofre Unit 3

$ 985.0 million $ 984.0 million Page 1 of 3

2) The amounts accumulated at the end of calendar year 2008 (net of estimated capital gains taxes) are:

Owner San Onofre Unit 2 San Onofre Unit 3 SCE $ 796.1 million $ 938.4 million SDG&E (2) $ 219.8 million $ 264.2 million Anaheim (2) $ 52.3 million $ 57.0 million Riverside (2) $ 27.1 million $ 29.7 million TOTAL $ 1,095.3 million $ 1,289.3 million

3) The annual amounts projected to be collected in 2009 are:

Owner San Onofre Unit 2 San Onofre Unit 3 SCE $ 18.7 million $ 12.8 million SDG&E (2) $ 5.3 million $ 4.1 million Anaheim (2) $ 0.0 million $ 0.0 million Riverside (2) $ 0.8 million $ 0.8 million TOTAL $ 24.8 million $ 17.7 million Each owner either (A) recovers, directly or indirectly, the e'stimated total cost of decommissioning through rates established by "cost of service" or similar rate making regulation, including entities that establish their own :rates and are able to recover their cost of service allocable to decommissioning,. or (B) has as its source of revenues for its external sinking fund a "non-bypassable charge," the total1 amount of which, with ' I earnings, provides the funds estimated to'be needed for decommissioning.

4) The composite escalation rates for San Onofre Units 2 and 3 Decommissioning are forecast as follows:

Owner Escalation Rate SCE Burial Costs 6.23 %

Other Costs 2.44 %

SDG&E (2) 6.70 %

Burial Costs Other Costs 2.36 %

Anaheim (2) 4.00 %

Riverside (2) 4.00 %

The composite escalation rate is 3.07 % for all costs.

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5) The investment rates of return for the Decommissioning Trust Funds forecast by each owner are the following:

Owner Return on Investment SCE 4.27 %

SDG&E (2) 4.14%

Anaheim (2) 4.00 %

Riverside (2) 4.99 %

The composite investment rate of return is 4.25 %. 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 Units 2 and 3 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.

Notes: (1) The site-specific decommissioning cost estimate for San Onofre Units 2 and 3 that was provided to the California Public Utilities Commission (CPUC) on November 10, 2005, includes the radiological costs associated with terminating the site license, non-radiological costs, and fuel storage costs. The CPUC approved this estimate on January 11, 2007.

(2) SCE is submitting information with respect to its current co-owners, SDG&E and Riverside and its former co-owner, Anaheim, on their behalf, and they are primarily responsible for the completeness and accuracy of their respective information.

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