ML13091A073

CFR 50.75(f)(1) Decommissioning Funding Report

ML13091A073
Person / Time
Site:	San Onofre
Issue date:	03/27/2013
From:	St.Onge R Southern California Edison Co
To:	Document Control Desk, Office of Nuclear Reactor Regulation
References
Download: ML13091A073 (5)

Text

J SOUTHERN CALIFORNIA EDISON An EDISON INTERNATIONAL Company Richard 1. St. Onge Director, Nuclear Regulatory Affairs and Emergency Planning 10 CFR 50.75 March 27, 2013 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, 2012. 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 Mr. Mark E.

Morgan, Licensing Lead, at 949-368-6745.

Sincerely,

Enclosure:

San Onofre Units 2 and 3 Decommissioning Funding Status Report cc:

E. E. Collins, Regional Administrator, NRC Region IV R. Hall, NRC Project Manager, San Onofre Units 2 and 3 B. Benney, NRC Project Manager, San Onofre Units 2 and 3 G. G. Warnick, NRC Senior Resident Inspector, San Onofre Units 2 and 3

?oro P.O. Box 128 San Clemente, CA 92672

Enclosure San Onofre Nuclear Generating Station Units 2 and 3 Decommissioning Funding Status Report 2012 1

San Onofre Nuclear Generating Station Units 2 and 3 Decommissioning Funding Status Report 2012 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 2012 dollars, and the operating owners are reported as follows:

Southern California Edison (SCE)

San Diego Gas & Electric (SDG&E)

City of Anaheim (Anaheim)

City of Riverside (Riverside) 78.21 %

20.00 %

0.00 %

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%

76.35%

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 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

$ 521.5 million

$ 521.5 million b)

The San Onofre Units 2 and 3 site-specific estimate (1) for decommissioning includes the below components. The first line represents costs associated with terminating the site license:

San Onofre Unit 2 San Onofre Unit 3 License Termination Site Restoration Fuel Storage Total

$ 1,214.4 million 408.1 million 377.2 million

$ 1,999.7 million

$ 1,201.0 million 524.1 million 360.5 million

$ 2,085.6 million 2

2)

The amounts accumulated at the end of calendar year 2012 (net of estimated capital gains taxes) are:

Owner San Onofre Unit 2 San Onofre Unit 3 SCE 1,233.4 million

$ 1,396.0 million SDG&E (2) 335.9 million 389.8 million Anaheim (2) 61.0 million 66.4 million Riverside (2)$

35.8 million 38.6 million TOTAL 1,666.1 million

$ 1,890.8 million The annual amounts projected to be collected in 2013 are:

Owner San Onofre Unit 2 San Onofre Unit 3 3)

SCE SDG&E (2)

Anaheim (2)

Riverside (2)

TOTAL

$ 17.6 million

$ 5.8 million

$ 0.0 million

$ 0.9 million

$ 24.3 million 5.1 million 2.2 million 0.0 million 0.7 million 8.0 million Each owner either (A) recovers, directly or indirectly, the estimated 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 total amount of which, with 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 Owner SCE Burial Costs Other Costs SDG&E (2)

Burial Costs Other Costs Anaheim (2)

Riverside (2)

Burial Costs Other Costs 6.93 %

2.39 %

6.93 %

2.39 %

4.00 %

6.93 %

2.39 %

The composite escalation rate is 2.80 % 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 3.74%

SDG&E (2) 4.13%

Anaheim (2) 2.50 %

Riverside (2) 2.58 %

The composite investment rate of return is 3.77%. 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).

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 April 3, 2009, includes the radiological costs associated with terminating the site license, non-radiological costs, and fuel storage costs. The CPUC approved this estimate on July 29, 2010.

(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 responsible for the completeness and accuracy of their respective information.

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