ML13284A127
| ML13284A127 | |
| Person / Time | |
|---|---|
| Site: | San Onofre  |
| Issue date: | 10/10/2013 |
| From: | St.Onge R Edison International Co, Southern California Edison Co |
| To: | Document Control Desk, Office of Nuclear Reactor Regulation |
| References | |
| TAC MF2243, TAC MF2244 | |
| Download: ML13284A127 (42) | |
Text
ISOUTHERN CALIFORNIA EDISON An EDISON INTERNATIONAL Company Richard St. Onge Director. Nuclear Regulatory Affairs and Emergency Planning 1 OCRF50.75 October 10, 2013 U. S. Nuclear Regulatory Commission ATTN: Document Control Desk Washington, DC 20555-0001
Subject:
Docket Nos. 50-361 and 50-362 Response to Request for Additional Information -
Units 2 and 3 Decommissioning Funding San Onofre Nuclear Generating Station, Units 2 and 3
References:
(1) Letter from Brian Benny (NRC) to P. T. Dietrich Onge (SCE),
Subject:
"San Onofre Nuclear Generating Station, Units 2 and 3 - Request for Additional Information Regarding 2013 Decommissioning Funding Status Reports (TAC Nos. MF 2243 and MF 2244), dated July September 12, 2013 (2) Letter R. J. St. Onge (SCE) to Document Control Desk (NRC),
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", dated March 27, 2013
Dear Sir or Madam:
By letter dated September 12, 2013 the Nuclear Regulatory Commission (NRC) issued a Request for Additional Information (Reference 1) regarding San Onofre Nuclear Generating Station Units 2 and 3 Decommissioning Funding. Enclosure 1 provides Southern California Edison's (SCE's) response.
There are no new regulatory commitments contained in this letter.
If you have any questions or require additional information, please contact Mr. Mark Morgan, at (949) 368-6745.
Sincerely,
,A c) 49 P.O. Box 128 San Clemente, CA 92674
Document Control Desk October 10, 2013
Enclosures:
- 1. Response to Request for Additional Information - Units 2 and 3 Decommissioning Funding
- 3. Amendment 6 to SDG&E's SONGS Nonqualified Decommissioning Master Trust Agreement and Amendment 8 to SDG&E's SONGS Qualified Decommissioning Master Trust Agreement cc:
S. A. Reynolds, 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 Response to Request for Additional Information -
Units 2 and 3 Decommissioning Funding
RAI #1: Reporting Requirements Please confirm that the dollar amounts accumulated in the decommissioning trust fund
($1,666,100,000 for SONGS 2 and $1,890,800,000 for SONGS 3) are exclusively for radiological decommissioning. Specify if any of the accumulated fund balance is for non-radiological decommissioning costs such as spent fuel management or other non-radiological decommissioning activities.
SCE Response:
Southern California Edison (SCE) does not reserve specific dollar amounts exclusively for estimated radiological decommissioning costs.
Under CA Public Utilities Code Sections 8321-30, the California Public Utilities Commission (CPUC) has authority to oversee the development of decommissioning cost estimates for nuclear facilities owned by utilities within its jurisdiction, and to authorize customer contributions to their corresponding decommissioning trusts. These decommissioning estimates address the entire scope of the utilities' decommissioning obligations, including: (1) radiological decommissioning and NRC license termination costs, (2) spent fuel storage costs, and (3) non-radiological decommissioning and site restoration costs. The CPUC also oversees the use of decommissioning trust funds.
The dollar amounts accumulated in the decommissioning trusts as of December 31, 2012, as shown in the March 27, 2013 letter, include the funds accumulated by SCE and the other San Onofre Nuclear Generating Station (SONGS) owners, including San Diego Gas & Electric Company (SDG&E), the City of Anaheim, and the City of Riverside. These funds are available to discharge the entire SONGS decommissioning liability, which includes all three categories of decommissioning costs. The amount of costs allocated to each of the various categories has varied over time based upon periodic updates to site-specific cost estimates that have been conducted by independent experts and then reviewed by the CPUC. However, the CPUC has never provided for any specific allocation of the existing trust funds among the three cost categories. Rather, the CPUC conducts oversight of both the collection of funds from ratepayers for the trusts and the use of the trust funds to pay for decommissioning expenses as required under California law.
On June 12, 2013, SCE certified that it has permanently ceased power operation of SONGS 2 &
3 (Reference 1). Subsequently, the CPUC ordered SCE to update the SONGS 2 & 3 decommissioning cost estimate that was pending before the CPUC as of December 2012 but not yet approved, based on the 2013 shutdown. SCE submitted the updated estimate (Reference 2) to the CPUC in July 2013, and this estimate is under review by the CPUC.
In addition, SCE has recognized that it may be appropriate for the CPUC to designate the allocation of trust balances among the cost categories, given the changed circumstances and near-term need to use trust funds for these various purposes. This issue is the subject to ongoing review by the CPUC. However, based upon the most recent updated estimate submitted to the CPUC in July 2013, the allocation would be as follows:
Cost Ratios in Proposed 2013 Cost Estimate SONGS2 12/31/2012 Trust Balance
$ 1,666,100,000 717,558,597 368,873,974 579,667,428 1,666,100,000 07/31/2013 Trust Balance 1,769,512,651 762,096,522 391,769,500 615,646,629 1,769,512,651 License Termination (Radiological Decommissioning) Costs Site Restoration (Non-Radiological Decommissioning) Costs Spent Fuel Management Costs 43%
22%
35%
100%
TOTAL SONGS3 License Termination (Radiological Decommissioning) Costs Site Restoration (Non-Radiological Decommissioning) Costs Spent Fuel Management Costs 38%
28%
34%
100%
$ 1,890,800,000 725,837,304 530,873,764 634,088,000 1,890,800,000 2,001,275,073 768,246,300 561,891,491 671,137,282 2,001,275,073 TOTAL It should be noted that the funds currently available for the estimated radiological decommissioning costs are substantially higher than the $521.5 million minimum amount (per unit) calculated by the method prescribed in 10 C.F.R. § 50.75(c) as provided in the March 27, 2013 submittal (Reference 3).
References:
- 1. Letter from P. T. Dietrich (SCE) to the U. S. Nuclear Regulatory Commission (NRC) dated June 12, 2013;
Subject:
Certification of Permanent Cessation of Power Operations San Onofre Nuclear Generating Station, Units 2 and 3
- 2. Southern California Edison to the California Public Utilities Commission dated July 22, 2013
Subject:
San Onofre Nuclear Generating Station Units 2 & 3 Decommissioning Cost Estimate 2013 Scenario
- 3. Letter R. J. St. Onge (SCE) to Document Control Desk (NRC),
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", dated March 27, 2013
RAI #2 Reporting Requirements Please indicate whether there have been any material changes to the trust agreements from the previous submittal dated March 30, 2011 (ADAMS Accession No. ML110900660).
SCE Response:
During the fall of 2011, SCE and SDG&E amended their respective master trust agreements to allow for the transfer of funds from their nonqualified trusts into their qualified trusts. The amendments to their master trust agreements are provided as Enclosures 2 and 3 to this response. The Cities of Anaheim and Riverside have confirmed that there have not been any material changes to their trust agreements from the previous submittal dated March 30, 2011.
Amendment 3 to SCE's SONGS Nuclear Decommissioning Master Trust Agreements
ISOLTHFRN CALIFORNIA An FD)SOA )\\V R\\ATIONAI Cumpnpju Akbar Jazayeri Vice President of Regulatory Operations October 13, 2011 ADVICE 2639-E (U 338-E)
PUBLIC UTILITIES COMMISSION OF THE STATE OF CALIFORNIA ENERGY DIVISION
SUBJECT:
Amendment of the Southern California Edison Company Qualified and Nonqualified Nuclear Decommissioning Trust Agreements to Reflect Special Transfer Permitted by the Internal Revenue Code Southern California Edison Company (SCE), on behalf of its Nuclear Facilities Decommissioning Master Trust Committee (Committee), hereby submits Amendments No. 3 of both the Qualified and Nonqualified Decommissioning Trust Agreements (Amendments)-'/ for approval pursuant to Section 2.12 of the Qualified Trust Agreement and Section 2.10 of the Nonqualified Trust Agreement.
PURPOSE This advice filing requests the California Public Utilities Commission (Commission or CPUC) to approve the Amendments and to authorize the Executive Director to sign the Amendments on behalf of the Commission. The Amendments revise SCE's decommissioning trust agreements (SCE Trust Agreements) to allow for a special transfer of assets from the Nonqualified Trust to the Qualified Trust as permitted by the Internal Revenue Service (IRS).
BACKGROUND In Order Instituting Investigation No. 86 (OIl 86), the Commission conducted an extensive investigation, on its own motion, into alternative methods of financing the Proposed Amendment No. 3 of the Southern California Edison Company Nuclear Facilities Qualified CPUC Decommissioning Master Trust Agreement For San Onofre and Palo Verde Nuclear Generating Stations and proposed Amendment No. 3 of the Southern California Edison Company Nuclear Facilities Nonqualifled CPUC Decommissioning Master Trust Agreement For San Onofre and Palo Verde Nuclear Generating Stations are attached as Exhibit A.
P.O. Box 800 2244 Walnut Grove Ave.
Rosemead, California 91770 (626) 302-3630 Fax (626) 302-4829
ADVICE 2639-E (U 338-E)
October 1.3, 2011 ultimate cost of decommissioning the nuclear power plants owned by California utilities.2/
In Decision (D.)87-05-062, the Commission adopted externally managed trust funds as the investment vehicles for accruing funds for the ultimate decommissioning of the nuclear power plants owned by California utilities.2-In that decision, the Commission also established guidelines for preparing these trust agreements.4' In response to D.87-05-062, SCE established two trusts for its nuclear decommissioning costs. The Qualified Trust was established as the vehicle to hold the decommissioning funds for contributions that qualify for an income tax deduction under Section 468A of the Internal Revenue Code, and the Nonqualified Trust was designed to hold the remaining funds. On November 25, 1987, the Commission approved the SCE Trust Agreements by Resolution E-3057. The Trusts were initially funded on February 2, 1988 and the SCE Trust Agreements have been amended and restated from time-to-time thereafter with Commission approval. The proposed amendments of the SCE Trust Agreements incorporate changes intended to enable the transfer of assets from the Nonqualified Trust to the Qualified Trust, which is taxed at a lower federal tax rate. The Amendments were approved by the Committee on October 11, 2011.
In Application 09-04-009, the Commission's Division of Ratepayer Advocates (DRA) recommended that SCE transfer funds from its Nonqualified Trust to its Qualified Trust.
SCE opposed the recommendation on the grounds that state income tax law was inconsistent with federal income tax law with respect to such transfers. Due to this inconsistency, SCE believed that making such transfers could jeopardize the tax preferences enjoyed by its Qualified Trust for state tax purposes. In D.10-07-047, the Commission agreed with SCE (see Finding of Fact 25, at page 54 of the printed decision).
Since that time, the State Legislature has passed tax reconciliation legislation conforming state and federal income tax provisions related to the transfer of funds from Nonqualified Decommissioning Trusts to Qualified Decommissioning Trusts. (See 2010 Senate Bill 401, Section 4, and California Revenue and Taxation Code Sections 17024.5(a)(1)(O) and 23051.5.) Pursuant to these changes, SCE now agrees with DRA that it is appropriate to amend the Trust Agreements to make it possible to complete the fund transfers DRA had recommended and with which SCE had agreed in principle. Doing so will be beneficial to ratepayers by maximizing the tax benefits available to SCE under state and federal tax laws and, in turn, by reducing the revenue requirements associated with assuring the adequacy of decommissioning funding. The Amendments proposed in this advice letter are necessary to facilitate the fund transfers contemplated and are therefore in the public interest.
The IRS has granted SCE 90 days to complete the special transfer of assets from the Nonqualified Trust to the Qualified Trust from the dates of receipt of its rulings. SCE received the rulings on August 24, 2011 and August 26, 2011, which results in a
_2 Oil 86, January 21, 1981, p. 3.
31 D.87-05-062, May 29, 1987, Ordering Paragraph No. 2, pp. 37-38.
A/
Id. Conclusions of Law 5 and 6, p. 37.
ADVICE 2639-E (U 338-E)
October 13, 2011 deadline to complete the first transfer on November 22, 2011. Therefore, SCE requests that the Amendments be approved no later than November 12, 2011, 30 days from today's date, in order to allow sufficient time to implement the special transfer.
If the transfer is approved, SCE plans to continue using the investment managers for the Nonqualified Trust in the interim, operating under its currently-effective management agreements but making necessary revisions to account for the transfer of the funds to the Qualified Trust.
PROCEDURAL INFORMATION Amendment of the SCE Trust Agreements requires Commission approval. The Committee is authorized to amend the SCE Trust Agreements thirty (30) days after filing a copy of the proposed amendments with the Commission provided no written objections are filed within that period. The relevant text of the two sections is identical, and states in part:
"The Committee may also amend this agreement thirty days after filing a copy of the proposed amendment with the CPUC. No proposed amendment may be made if written objections to a proposed amendment are filed within the thirty-day period. Any party making written objections to a proposed amendment shall serve the written objections with a certificate of service on the Company, the Committee, the Trustee, and the CPUC Staff on the same day the written objections are filed with the CPUC."-'
The Amendments were approved by the Committee on October 11, 2011. Copies are attached as Exhibit A.
No cost information is required for this advice filing.
This advice filing will not increase any rate or charge, cause the withdrawal of service, or conflict with any other schedule or rule.
TIER DESIGNATION Pursuant to General Order (GO) 96-B, Energy Industry Rule 5.2, this advice letter is submitted with a Tier 2 designation.
5/
See, §2.12, p. 11 of the Qualified Trust as restated November 1,2002, and §2.10, p. 10 of the Nonqualified Trust as restated November 1, 2002.
ADVICE 2639-E (U 338-E)
October 13, 2011 EFFECTIVE DATE The Amendments are proposed to be executed by the Company and the trustee upon approval of the Commission. SCE respectfully requests that the Commission approve the Amendments and authorize the Executive Director to sign the amendments on behalf of the Commission at its earliest convenience or no later than November 12, 2011.
NOTICE Anyone wishing to protest this advice filing may do so by letter via U.S. Mail, facsimile, or electronically, any of which must be received no later than 20 days after the date of this advice filing. Protests should be mailed to:
CPUC, Energy Division Attention: Tariff Unit 505 Van Ness Avenue San Francisco, California 94102 E-mail: iniqcpuc.ca.qov and masocpuc.ca.gov Copies should also be mailed to the attention of the Director, Energy Division, Room 4004 (same address above).
In addition, protests and all other correspondence regarding this advice letter should also be sent by letter and transmitted via facsimile or electronically to the attention of:
Akbar Jazayeri Vice President of Regulatory Operations Southern California Edison Company 2244 Walnut Grove Avenue Rosemead, California 91770 Facsimile: (626) 302-4829 E-mail: AdviceTariffManager&,sce.com Leslie E. Starck Senior Vice President c/o Karyn Gansecki Southern California Edison Company 601 Van Ness Avenue, Suite 2030 San Francisco, California 94102 Facsimile: (415) 929-5540 E-mail: Karvn.Ganseckinsce.com There are no restrictions on who may file a protest, but the protest shall set forth specifically the grounds upon which it is based and shall be submitted expeditiously.
ADVICE 2639-E (U 338-E)
October 13, 2011 In accordance with Section 4 of GO 96-B, SCE is serving copies of this advice filing to the interested parties shown on the attached GO 96-B service list. Address change requests to the GO 96-B service list should be directed by electronic mail to AdviceTadtiýa,naqer(*,sz3._-z:-.
or at (626) 302-2930. For changes to all other service lists, please contact the Commission's Process Office at (415) 703-2021 or by electronic mail at Process Office@cpuc.ca.Qov.
Further, in accordance with Public Utilities Code Section 491, notice to the public is hereby given by filing and keeping the advice filing at SCE's corporate headquarters. To view other SCE advice letters filed with the Commission, log on to SCE's web site at http://www.sce.com/AboutSCE/Regulatorv/adviceletters.
For questions, please contact Gregory Henry at (626) 302-1457 or by electronic mail at Gregory. Henrycsce.com.
Southem Califomia Edison Company Akbar Jazayeri AJ:gh:sq Enclosures
EXHIBIT A AMENDMENTS TO THE SOUTHERN CALIFORNIA EDISON COMPANY NUCLEAR FACILITIES DECOMMISSIONING MASTER TRUST AGREEMENTS
AMENDMENT NO. 3 TO THE SOUTHERN CALIFORNIA EDISON COMPANY NUCLEAR FACILITIES QUALIFIED CPUC DECOMMISSIONING MASTER TRUST AGREEMENT FOR SAN ONOFRE AND PALO VERDE NUCLEAR GENERATING STATIONS This Amendment No. 3 made this __ day of _
2011, by and between Southern California Edison Company ("Company"), The Bank of New York Mellon, a New York state bank, successor by operation of law to Mellon Bank, N.A ("Trustee"),
and the California Public Utilities Commission ("CPUC").
WHEREAS, pursuant to Section 2.12 of the Southern California Edison Company Nuclear Facilities Qualified CPUC Decommissioning Master Trust Agreement for San Onofre and Palo Verde Nuclear Generating Stations as amended and restated November 1, 2002, as amended ("Agreement") between the Company, the Trustee and the CPUC, the parties specifically reserve the right to amend the Agreement; NOW, THEREFORE, the parties agree as follows:
- 1. Section 2.02 of the Agreement is hereby deleted in its entirety and restated to read as follows:
"Additions to Master Trust. From time to time after the initial contribution to the Master Trust and prior to the termination of this Master Trust, the Company may make, and the Trustee shall accept, additional contributions to the Master Trust of money and/or securities, to the extent permitted under Section 468A of the Code, to satisfy the purpose of this Master Trust as set forth in Section 1.03, which contributions may be made to the applicable Fund Account(s). With respect to amounts received as a transfer from the Southern California Edison Company Nuclear Facilities Nonqualified CPUC Decommissioning Master Trust for San Onofre and Palo Verde Nuclear Generating Stations (the "Nonqualified Master Trust") to this Master Trust, such amounts attributable to a particular Unit or Fund under the Non-Qualified Master Trust shall be allocated to the same Unit or Fund under this Master Trust."
- 2. Section 2.03 of the Agreement is hereby deleted in its entirety and restated to read as follows:
"Adjustments for Excess Contributions. The Trustee and the Company understand and agree that the contributions made by the Company to any of the Funds from time to time may exceed the amount permitted to be paid into such funds(s) pursuant to
Section 468A of the Code and any regulations thereunder based upon changes in estimates, subsequent developments, or any other event or occurrence which could not reasonably have been foreseen by the Company at the time such contribution was made (Excess Contribution). With respect to any Excess Contribution, the Trustee shall make (i) transfers from the Master Trust to the Nonqualified Master Trust, or (ii) withdrawals from the Master Trust to the Company, as the case may be, upon a presentation of a certificate substantially in the form of Exhibit E, instructing the Trustee to make such payment from the Master Trust to the Nonqualified Master Trust, or substantially in the form of Exhibit F, instructing the Trustee to make such payment from the Master Trust to the Company. The Trustee shall be fully protected in relying upon such certificate."
- 3. Section 2.04 of the Agreement is amended by adding the following language to the end thereof:
"Notwithstanding the preceding sentence or anything else in this Master Trust to the contrary, monies or securities can be transferred from the Master Trust to the Nonqualified Master Trust to the extent permitted by Section 468A of the Code and directed by the Company upon presentation of a certificate substantially in the form of Exhibit E."
- 4. Each Party hereby represents and warrants to the others that it has full authority to enter into this Amendment No. 3 upon the terms and conditions hereof and that the individual executing this Amendment No. 3 on its behalf has the requisite authority to bind that Party.
[Signatures to follow]
2
IN WITNESS WHEREOF, the Company, the Trustee, and the CPUC have set their hands and seals in agreement to these amendments effective as provided above.
SOUTHERN CALIFORNIA EDISON COMPANY By:
Date:
Attest:
THE BANK OF NEW YORK MELLON By:
Date:
Attest:
CALIFORNIA PUBLIC UTILITIES COMMISSION By:
Date:
Attest:
3
Exhibit E CERTIFICATE FOR TRANSFER FROM THE QUALIFIED FUND TO THE NONQUALIFIED FUND The Bank of New York Mellon, as Trustee
[Address]
This Certificate is submitted pursuant to Section 2.03 and Section 2.04 of the Southern California Edison Company Nuclear Facilities Qualified CPUC Decommissioning Master Trust for San Onofre and Palo Verde Nuclear Generating Stations ("Master Trust"), as amended and restated November 1, 2002, as amended. All capitalized terms used in this Certificate and not otherwise defined herein shall have the meanings assigned to such terms in the Master Trust.
In your capacity as Trustee, you are hereby authorized and instructed to pay in cash and the securities identified on the schedule attached hereto from the [Unit name's] qualified fund to that Unit's nonqualified fund.
With respect to such payment, the undersigned, each being an Authorized Representative of Southern California Edison Company ("Company"), a California corporation, and, in such capacity, being authorized and empowered to execute and deliver this certificate, hereby certifies to the Trustee of the Southern California Edison Company Nuclear Facilities Qualified CPUC Decommissioning Master Trust for San Onofre and Palo Verde Nuclear Generating Stations, pursuant to Section 2.03 and Section 2.04 of the Master Trust, that any amount stated herein to be paid from the Southern California Edison Company Nuclear Facilities Qualified CPUC Decommissioning Master Trust for San Onofre and Palo Verde Nuclear Generating Stations to the Southern California Edison Company Nuclear Facilities Nonqualified CPUC Decommissioning Master Trust for San Onofre and Palo Verde Nuclear Generating Stations is an Excess Contribution as set forth in Section 2.03 of the Master Trust.
IN WITNESS WHEREOF, each of the undersigned have executed this Certificate in the capacity as shown below as of By:
Authorized Representative By:
Authorized Representative 4
Exhibit F CERTIFICATE FOR WITHDRAWAL OF EXCESS CONTRIBUTION The Bank of New York Mellon, as Trustee
[Address]
This Certificate is submitted pursuant to Section 2.03 of the Southern California Edison Company Nuclear Facilities Qualified CPUC Decommissioning Master Trust for San Onofre and Palo Verde Nuclear Generating Stations ("Master Trust"), as amended and restated November 1, 2002, as amended. All capitalized terms used in this Certificate and not otherwise defined herein shall have the meanings assigned to such terms in the Master Trust. In your capacity as Trustee, you are hereby authorized and instructed to pay $
in cash and the securities identified on the schedule attached hereto to the Company from the Master Trust.
With respect to such payment, the undersigned, each being an Authorized Representative of Southern California Edison Company ("Company"), a California corporation, and, in such capacity, being authorized and empowered to execute and deliver this certificate, hereby certifies to the Trustee of the Southern California Edison Company Nuclear Facilities Qualified CPUC Decommissioning Master Trust for San Onofre and Palo Verde Nuclear Generating Stations, pursuant to Section 2.03 of the Master Trust, that withdrawal pursuant to Section 2.03 of the Master Trust is appropriate and that $
and securities constitutes an Excess Contribution pursuant to Section 2.03 of the Master Trust.
IN WITNESS WHEREOF, each of the undersigned have executed this Certificate in the capacity as shown below as of By:
Authorized Representative By:
Authorized Representative 5
AMENDMENT NO. 3 TO THE SOUTHERN CALIFORNIA EDISON COMPANY NUCLEAR FACILITIES NONQUALIFIED CPUC DECOMMISSIONING MASTER TRUST AGREEMENT FOR SAN ONOFRE AND PALO VERDE NUCLEAR GENERATING STATIONS This Amendment No. 3 is made this __ day of
,2011, by and between Southern California Edison Company ("Company"), The Bank of New York Mellon, a New York state bank, successor by operation of law to Mellon Bank, N.A ("Trustee")
and the California Public Utilities Commission ("CPUC").
WHEREAS, pursuant to Section 2.10 of the Southern California Edison Company Nuclear Facilities Nonqualified CPUC Decommissioning Master Trust Agreement for San Onofre and Palo Verde Nuclear Generating Stations as amended and restated November 1, 2002, as amended ("Agreement") between the Company, the Trustee and the CPUC, the parties specifically reserve the right to amend the Agreement; NOW, THEREFORE, the parties agree as follows:
I. Section 2.02 of the Agreement is hereby amended by adding the following language to the end thereof:
"With respect to amounts received as an Excess Contribution (as such term is defined in Section 2.03 of the Qualified Master Trust (defined below)) from the Southern California Edison Company Nuclear Facilities Qualified CPUC Decommissioning Master Trust for San Onofre and Palo Verde Nuclear Generating Stations (the "Qualified Master Trust") to this Master Trust, such amounts attributable to a particular Unit or Fund under the Qualified Master Trust shall be allocated to the same Unit or Fund under this Master Trust."
- 2. Section 2.03 of the Agreement is hereby amended by adding the following language to the end thereof:
"Notwithstanding the preceding sentence or anything else in this Master Trust to the contrary, monies or securities can be transferred from the Master Trust to the Southern California Edison Company Nuclear Facilities Qualified CPUC Decommissioning Master Trust for the San Onofre and Palo Verde Nuclear Generating Stations to the extent permitted by Section 468A of the Code and directed by the Company upon presentation of a certificate substantially in the form of Exhibit E. The Trustee shall be fully protected in relying upon such certificate."
DMUS 29545512-2.072042.0011
- 3. Each Party hereby represents and warrants to the others that it has full authority to enter into this Amendment No. 3 upon the terms and conditions hereof and that the individual executing this Amendment No. 3 on its behalf has the requisite authority to bind that Party.
IN WITNESS WHEREOF, the Company, the Trustee, and the CPUC have set their hands and seals in agreement to these amendments effective as provided above.
SOUTHERN CALIFORNIA EDISON COMPANY By:
Date:
Attest:
THE BANK OF NEW YORK MELLON By:
Date:
Attest:
CALIFORNIA PUBLIC UTILITIES COMMISSION By:
Date:
Attest:
2
Exhibit E CERTIFICATE FOR TRANSFER FROM THE NONQUALIFIED FUND TO THE QUALIFIED FUND The Bank of New York Mellon, as Trustee
[Address]
This Certificate is submitted pursuant to Section 2.03 of the Southern California Edison Company Nuclear Facilities Nonqualified CPUC Decommissioning Master Trust for San Onofre and Palo Verde Nuclear Generating Stations ("Master Trust"), as amended and restated November 1, 2002, as amended. All capitalized terms used in this Certificate and not otherwise defined herein shall have the meanings assigned to such terms in the Master Trust.
In your capacity as Trustee, you are hereby authorized and instructed to pay in cash and the securities identified on the schedule attached hereto from the [Unit name's] nonqualified fund to that Unit's qualified fund; or With respect to such payment, the undersigned, each being an Authorized Representative of Southern California Edison Company ("Company"), a California corporation, and, in such capacity, being authorized and empowered to execute and deliver this certificate, hereby certifies to the Trustee of the Southern California Edison Company Nuclear Facilities Nonqualified CPUC Decommissioning Master Trust for San Onofre and Palo Verde Nuclear Generating Stations, pursuant to Section 2.03 of the Master Trust, that any amount stated herein to be paid from the Southern California Edison Company Nuclear Facilities Nonqualified CPUC Decommissioning Master Trust to the Southern California Edison Company Nuclear Facilities Qualified CPUC Decommissioning Master Trust is in accordance with the rules of section 468A of the Code and the regulations thereunder.
[Signature to follow]
3
IN WITNESS WHEREOF, each of the undersigned have executed this Certificate in the capacity as shown below as of By:
Authorized Representative By:
Authorized Representative 4
I CALIFORNIA PUBLIC UTILITIES COMMISSION
]
ADVICE LETTER FILING
SUMMARY
ENERGY UTILITY MUST BE COMPLETED BY UTILITY (Attach additional pages as needed)
Company name/CPUC Utility No.: Southern California Edison Company (U 338-E)
Utility type:
Contact Person: James Yee 0] ELC 0 GAS Phone #: (626) 302-2509 0 PLC 0 HEAT 0 WATER E-mail: James.Yee&sce.com E-mail Disposition Notice to: AdviceTariffManager sce.com EXPLANATION OF UTILITY TYPE (Date Filed/ Received Stamp by CPUC)
ELC = Electric GAS = Gas PLC = Pipeline HEAT = Heat WATER = Water Advice Letter (AL) #:
2639-E Tier Designation:
2 Subject of AL:
Amendment of the Southern California Edison Company Qualified and Nonqualified Nuclear Decommissioning Trust Agreements to Reflect Special Transfer Permitted by the Internal Revenue Code Keywords (choose from CPUC listing):
Nuclear, Taxes AL filing type: 0 Monthly 0 Quarterly 0 Annual 0l One-Time 0 Other If AL filed in compliance with a Commission order, indicate relevant Decision/Resolution #:
Does AL replace a withdrawn or rejected AL? If so, identify the prior AL:
Summarize differences between the AL and the prior withdrawn or rejected AL':
Confidential treatment requested? 0 Yes 0l No If yes, specification of confidential information:
Confidential information will be made available to appropriate parties who execute a nondisclosure agreement.
Name and contact information to request nondisclosure agreement/access to confidential information:
Resolution Required? 0 Yes 0 No Requested effective date:
10/12/11 No. of tariff sheets: Estimated system annual revenue effect: (%):
Estimated system average rate effect (%):
When rates are affected by AL, include attachment in AL showing average rate effects on customer classes (residential, small commercial, large C/I, agricultural, lighting).
Tariff schedules affected:
None Service affected and changes proposed':
Pending advice letters that revise the same tariff sheets:
1 Discuss in AL if more space is needed.
Protests and all other correspondence regarding this AL are due no later than 20 days after the date of this filing, unless otherwise authorized by the Commission, and shall be sent to:
CPUC, Energy Division Attention: Tariff Unit 505 Van Ness Ave.,
San Francisco, CA 94102 ini(cpuc.ca.gov and mas@*cpuc.ca.gov Akbar Jazayeri Vice President of Regulatory Operations Southern California Edison Company 2244 Walnut Grove Avenue Rosemead, California 91770 Facsimile: (626) 302-4829 E-mail: AdviceTariffManaQer(asce.com Leslie E. Starck Senior Vice President c/o Karyn Gansecki Southern California Edison Company 601 Van Ness Avenue, Suite 2030 San Francisco, California 94102 Facsimile: (415) 929-5540 E-mail: Karyn.Ganseckinsce.com Amendment 6 to SDG&E's SONGS Nonqualified Decommissioning Master Trust Agreement and Amendment 8 to SDG&E's SONGS Qualified Decommissioning Master Trust Agreement
STATE OF CALIFORNIA PUBLIC UTILITIES COMMISSION 505 VAN NESS AVENUE 3AN FRANCISCO, CA 94102-3298 October 28, 2011 Clay Faber, Director Regulatory Affairs San Diego Gas and Electric 8330 Century Park Court, CP32C San Diego, CA 92123-1548 Edmund G. Brown Jr., Governor EE.
Advice Letter 2288-E
Subject:
Amendment to the Qualified and Non-Qualified Nuclear Decommissioning Trust Agreements to Reflect New
.Nuclear Regulatory Commission Regulations
Dear Mr. Faber:
Advice Letter 2288-E is effective October 20, 2011.
Sincerely, Julie A. Fitch, Director Energy Division
Clay Faber - Director 00 Regulatory Affairs 8330 Century Park Court sg i San Diego, CA 92123-1548 Tel: 858.654.3563 Agy Fax: 858.654.1788 A,. Smpra Eneryutiity cfaber@semprautilities.com September 20, 2011 ADVICE LETTER 2288-E (U902-E)
PUBLIC UTILITIES COMMISSION OF THE STATE OF CALIFORNIA
SUBJECT:
AMENDMENT TO THE QUALIFIED AND NONQUALIFIED NUCLEAR DECOMMISSIONING TRUST AGREEMENTS TO REFLECT NEW NUCLEAR REGULATORY COMMISSION REGULATIONS San Diego Gas & Electric Company (SDG&E),
on behalf of its Nuclear Facilities Decommissioning Master Trust Committee (Committee), hereby submits Amendment No. 8 of the Qualified Decommissioning Trust Agreement and Amendment No. 6 of the Nonqualified Decommissioning Trust Agreement (Amendments)1 for approval pursuant to Section 2.12 of the Qualified Trust Agreement and Section 2.10 of the Nonqualified Trust Agreement.
PURPOSE This Advice Letter requests the California Public Utilities Commission (CPUC or Commission) to approve the Amendments and to authorize the Executive Director to sign the amendments on behalf of the Commission.
The Amendments revise SDG&E's decommissioning trust agreements (SDG&E Trust Agreements) to allow for a special transfer of assets from the Non-Qualified Trust to the Qualified Trust as permitted by the IRS.
BACKGROUND In Order Instituting Investigation No. 86 (OIl 86), the Commission conducted an extensive investigation, on its own motion, into alternative methods of financing the ultimate cost of decommissioning the nuclear power plants owned by California utilities.
In Commission Decision (D.) 87-05-062, the Commission adopted externally managed trust funds as the investment vehicles for accruing funds for the ultimate decommissioning of the nuclear power plants owned by California utilities.
In that decision, the Commission also established guidelines for preparing these trust agreements.
In response to D.87-05-062, SDG&E established two trusts for its nuclear decommissioning 1 Proposed Amendment No. 7 of the SDG&E Nuclear Facilities Qualified CPUC Decommissioning Master Trust Agreement for San Onofre Nuclear Generating Stations and proposed Amendment No. 5 of the SDG&E Nuclear Facilities Nonqualified CPUC Decommissioning Master Trust Agreement for San Onofre Nuclear Generating Stations are attached to Exhibit A.
Public Utilities Commission 2
September 20, 2011 Advice Letter 2288-E costs. The Qualified Trust was established as the vehicle to hold the decommissioning funds for contributions that qualify for an income tax deduction under Section 468A of the Internal Revenue Code, and the Nonqualified Trust was designed to hold the remaining funds.
On November 25, 1987, the Commission approved the SDG&E Trust Agreements by Resolution E-3060. The Qualified Trust was initially funded on December 2, 1987, and the Nonqualified Trust was initially funded on February 1, 1998. SDG&E Trust Agreements have been amended and restated from time-to-time thereafter with Commission approval.
The proposed amendments of the SDG&E Trust Agreements attached to Exhibit A incorporate changes intended to enable the transfer of assets from the Non-Qualified Trust to the Qualified Trust, which is taxed at a lower federal tax rate. These amendments were approved at the September 20, 2011 meeting of the Committee.
In Application 09-04-009, the Commission Division of Ratepayer Advocates recommended that SDG&E transfer funds from its non-qualifying trusts to its qualifying trusts. SDG&E opposed the recommendation on the grounds that state income tax law was inconsistent with federal income tax law with respect to such transfers; due to this inconsistency, SDG&E believed that making such transfers could jeopardize the tax preferences enjoyed by its qualified trusts for state tax purposes. In Decision 10-07-047, the Commission agreed with SDG&E (see Finding of Fact 25, at page 54 of the printed decision).
Since that time, the State Legislature has passed tax-reconciliation legislation conforming state and federal income tax provisions related to the transfer of funds from nonqualified decommissioning trusts to qualified decommissioning trusts.
(See 2010 Senate Bill 401, Section 4, and California Revenue and Taxation Code Sections 17024.5(a)(1)(O) and 23051.5.) Pursuant to these changes, SDG&E now agrees with the DRA that it is appropriate to make the fund transfers DRA had recommended and with which SDG&E had agreed in principle. Doing so will be beneficial to ratepayers by maximizing the tax benefits available to SDG&E under state and federal tax law and, in turn, by reducing the revenue requirements associated with assuring the adequacy of decommissioning funding. The amendments to SDG&E's Master Trust Agreement as proposed in this Advice Letter are necessary to facilitate the fund transfers contemplated and are therefore in the public interest.
The IRS has granted SDG&E 90 days to complete the special transfer of assets from the Non-Qualified Trust to the Qualified Trust from the date of receipt of its rulings, which is August 18 th 2011. Additionally, the Trustee has expressed its preference that such a transfer be completed at month end. Therefore, SDG&E requests that these Amendments be approved no later than October 20, 2011, 30 days from today's date, in order to allow sufficient time to implement the special transfer.
PROCEDURAL INFORMATION Amendment of the SDG&E Trust Agreements requires Commission approval. The Committee is authorized to amend the SDG&E Trust Agreements thirty days after filing a copy of the proposed amendments with the Commission provided no written objections are filed within that period. The relevant text of the two sections is identical, and states in part:
The Committee may also amend this agreement thirty days after filing a copy of the proposed amendment with the CPUC. No proposed amendment may be made if written objections to a proposed amendment are filed within the thirty-day period.
Any party making written objections to a proposed amendment shall
Public Utilities Commission 3
September 20, 2011 Advice Letter 2288-E serve the written objections with a certificate of service on the Company, the Committee, the Trustee, and the CPUC Staff on the same day the written objections are filed with the CPUC.2 These amendments were approved by the Committee at its September 20, 2011 meeting.
EFFECTIVE DATE SDG&E believes that this Advice Letter is subject to Energy Division disposition and should be classified as a Tier 2 or at the discretion of the Commission pursuant to GO 96-B. SDG&E respectfully requests that the Commission approve the amendments and authorize the Executive Director to sign the amendments on behalf of the Commission at its earliest convenience or no later than October 20, 2011.
PROTEST Anyone may protest this advice letter to the Commission. The protest must state the grounds.
upon which it is based, including such items as financial and service impacts, and should be submitted expeditiously. The protest must be made in writing and received within 20 days of the date this advice letter was filed with the CPUC, or October 10, 2011. There is no restriction on who may file a protest. The address for mailing or delivering a protest to the Commission is:
CPUC Energy Division Attention: Tariff Unit 505 Van Ness Avenue San Francisco, CA 94102 Copies of the protest should also be sent via e-mail to the attention of both Honesto Gatchalian (iniacpuc.ca..oV) and Maria Salinas (mas.couc.ca.aov) of the Energy Division. A copy of the protest should also be sent via both e-mail and facsimile to the address shown below on the same date it is mailed or delivered to the Commission.
Attn: Megan Caulson Regulatory Tariff Manager 8330 Century Park Court, Room 32C San Diego, CA 92123-1548 Facsimile No. (858) 654-1879 E-mail: mcaulson@semprautilities.com NOTICE A copy of this filing has been served on the utilities and interested parties shown on the attached list, including interested parties to service lists R.10-05-004 et al either providing them a copy electronically or by mailing them a copy hereof, properly stamped and addressed.
2 See Section 2.12, p. 22 of the Qualified Trust as restated June 29, 1992, and Section 2.10, p. 20 of the Nonqualified Trust as restated June 29, 1992.
Public Utilities Commission 4
September 20, 2011 Advice Letter 2288-E Address changes should be directed to SDG&E Tariffs by facsimile at (858) 654-1879 or by e-mail at SDG&ETariffs@semprautilities.com.
CLAY FABER Director - Regulatory Affairs
I CALIFORNIA PUBLIC UTILITIES COMMISSION I
ADVICE LETTER FILING
SUMMARY
ENERGY UTILITY MUST BE COMPLETEDBY UTILITY (Attach additioialphgks as n~eded)
Company name/CPUC Utility No. SAN DIEGO GAS & ELECTRIC (U 902)
Utility type:
Contact Person: Aurora Carrillo 0
ELC El GAS Phone #: (858) 654-1542
[] PLC
_E HEAT WATER E-mail:
acarrill semprautilities.com EXPLANATION OF UTILITY TYPE (Date Filed/ Received Stamp by CPUC)
ELC = Electric GAS = Gas PLC = Pipeline HEAT = Heat WATER = Water Advice Letter (AL) #: 2288-E Subject of AL:) Amendment to the Oualified and Nonqualified Nuclear Decommissioning Trust Agreements to Reflect New Nuclear Regulatory Commission Regulations Keywords (choose from CPUC listing):
Agreements, Nuclear Decommissioning AL filing type: El Monthly E] Quarterly E] Annual Z One-Time El Other If AL filed in compliance with a Commission order, indicate relevant Decision/Resolution #:
Does AL replace a withdrawn or rejected AL? If so, identify the prior AL Summarize differences between the AL and the prior withdrawn or rejected ALI: NIA Does AL request confidential treatment? If so, provide explanation:
Resolution Required? E] Yes X No Tier Designation: [: 1 Zj 2 El 3 Requested effective date: October 20, 2011 No. of tariff sheets: N/A Estimated system annual revenue effect: (%): N/A Estimated system average rate effect (%):
N/A When rates are affected by AL, include attachment in AL showing average rate effects on customer classes (residential, small commercial, large C/I, agricultural, lighting).
Tariff schedules affected:
N/A Service affected and changes proposed1 : N/A Pending advice letters that revise the same tariff sheets:
N/A Protests and all other correspondence regarding this AL are due no later than 20 days after the date of this filing, unless otherwise authorized by the Commission, and shall be sent to:
CPUC, Energy Division San Diego Gas & Electric Attention: Tariff Unit Attention: Megan Caulson 505 Van Ness Ave.,
8330 Century Park Ct, Room 32C San Francisco, CA 94102 San Diego, CA 92123 mas@cpuc.ca.gov and jnj@cpuc.ca.gov mcaulson@semprautilities.com 1 Discuss in AL. if more space is needed.
General Order No. 96-B ADVICE LETTER FILING MAILING LIST cc: (w/enclosures)
Public Utilities Commission DRA S. Cauchois R. Pocta W. Scott Ener-gy Division P. Clanon S. Gallagher H. Gatchalian D. Lafrenz M. Salinas CA. Energy Commission F. DeLeon R. Tavares Alcantar & Kahl LLP K. Harteloo American Energy Institute C. King APS Energqy Services J. Schenk BP Energy Company J. Zaiontz Barkovich & Yap, Inc.
B. Barkovich Bartle Wells Associates R. Schmidt Braun & Blaising, P.C.
S. Blaising California Energy Markets S. O'Donnell C. Sweet California Farm Bureau Federation K. Mills California Wind Energy N. Rader CCSE S. Freedman J. Porter Children's Hospital & Health Center T. Jacoby City of Chula Vista M. Meacham E. Hull City of Poway R. Willcox City of San Diego J. Cervantes G. Lonergan M. Valerio Commerce Enerav Group V. Gan Constellation New Energy W. Chen CP Kelco A. Friedl Davis Wright Tremaine. LLP E. O'Neill J. Pau Dept. of General Services H. Nanjo M. Clark Douglass & Liddell D. Douglass D. Liddell G. Klatt Duke Energy North America M. Gillette Dynegy, Inc.
J. Paul Ellison Schneider & Harris LLP E. Janssen Energy Policy Initiatives Center (USD)
S. Anders Energy Price Solutions A. Scott Energy Strategies, Inc.
K. Campbell M. Scanlan Goodin, MacBride, Squeri, Ritchie & Day B. Cragg J. Heather Patrick J. Squeri Goodrich Aerostructures Group M. Harrington Hanna and Morton LLP N. Pedersen Itsa-North America L. Belew J.B.S. Enerqy J. Nahigian Luce, Forward, Hamilton &.Scripps LLP J. Leslie Manatt, Phelps & Phillips LLP D. Huard R. Keen Matthew V. Brady & Associates M. Brady Modesto Irrigation District C. Mayer Morrison & Foerster LLP P. Hanschen MRW & Associates D. Richardson OnGrid Solar Andy Black Pacific Gas & Electric Co.
J. Clark M. Huffman S. Lawrie E. Lucha Pacific Utility Audit, Inc.
E. Kelly R. W. Beck, Inc.
C. Elder School Prowect for Utility Rate Reduction M. Rochman Shute, Mihaly & Weinberger LLP
- 0. Armi Solar Turbines F. Chiang Sutherland Asbill & Brennan LLP K. McCrea Southern California Edison Co.
M. Alexander K. Cini K. Gansecki H. Romero TransCanada R. Hunter D. White TURN M. Florio M. Hawiger UCAN M. Shames U.S. Dept. of the Naw K. Davoodi N. Furuta L. DeLacruz Utility Svecialists, Southwest, Inc.
D. Koser Western Manufactured Housin[g Communities Association S. Dey White & Case LLP L. Cottle Interested Parties In:
R.10-05-004
AMENDMENT NO. 8 TO THE SAN DIEGO GAS & ELECTRIC COMPANY NUCLEAR FACILITIES QUALIFIED CPUC DECOMMISSIONING MASTER TRUST AGREEMENT FOR SAN ONOFRE NUCLEAR GENERATING STATIONS This Amendment No. 8 made this __
day of
,20 11, by and between San Diego Gas & Electric Company ("Company") and The Bank of New York Mellon, a New York state bank, successor by operation of law to Mellon Bank, N.A ("Trustee").
WHEREAS, pursuant to Section 2.12 of the Nuclear Facilities Qualified Decommissioning Master Trust for San Onofre Nuclear Generating Stations dated as of Jlme 29, 1992, as amended ("Agreement") between the Company and the Trustee, the parties specifically reserve the right to amend the Agreement; NOW, THEREFORE, the Company and the Trustee agree as follows:
- 1. Section 2.02 of the Agreement is hereby deleted in its entirety and restated to read as follows:
"Additions to Master Trust. From time to time after the initial contribution to the Master Trust atid prior to the termination of this Master Trust, the Company may make, and the Trustee shall accept, additional contributions to the Master Trust of money and/or securities, to the extent permitted under Section 468A of the Code, to satisfy the purpose of this Master Trust as set forth in Sectiou 1,03, which contributions may be made to the applicable Furnd Account(s). With respect to amounts received as a transfer from the San Diego Gas & Electric Company Nuclear Facilities Non-Qualified CPUC Decommissioning Master Trust for San Onofie Nuclear Generating Stations (the "Non-Qualified Master Trust") to this Master Trust, such amounts attributable to a particular Unit or Fund under the Non-Qualified Master Trust shall be allocated to the same Unit or-Fund under this Master Trust."
- 2. Section 2.03 of the Agreement is hereby deleted in its entirety and restated to read as follows:
"Adiustments for Excess Contributions. The Trustee and the Company understand and agree that the contributions made by the Company to any of the Funds from time to time may exceed the amount permitted to be paid into such funds(s) pursuant to Section 468A of the Code and any regulations thereunder based upon changes in estimates, subsequent developments, or any other event or occurrence which could not reasonably have been foreseen by the Company at the time such contribution was made (Excess Contribution). With respect to any Excess Contribution, the Trustee slhall make (i) transfers from the Master Trust to the San Diego Gas & Electric DM)US 29545515-2.072042.[J011
Compnpay Nuclear Facilities Non-Qualified CPIJC Decomrnissionlng Master Trust for the S.an QOmft Nuokar OCunertoling.latiJs or (il) wlthdruwuls from tLhe Master ruI.st to the Companly, **s the case may be, upon a presentation Ofa cerLificite substantially in thi form of Exhibit 1-, instructing the Trustee to make suoh payment from the Master Trust to the San Diego Gas & Electric Company Nuelcar Facilities Non-Qualified CPUC Decommissioning Master Trust fbr the San Onofro Nuclear Generating Stations, or substantially in the form of Exhibit F, instructing the Trustee to make such payment from the Master Trust to the Cornpany. The Trustee shall be fully protected in relying upon sutch vertifica*t.'"
- 3. Section 2.04 of the Agreement is amended by adding the followinig language to the end thereof:
"Notwithstanding the preceding sentence or anything else in this Master Trust to the contrar-y, monies or securities wan be transferred from the Muster Trust to the San Diego Gas & ElectTic Company Nuclear Facilities Nori-Qualificd CPUC Decommissioning Master Trust for tie San Onofre Nuclear Generating Stations to the extent permitted by Section 469A of the Code and directed by tie Company upon pre.sentation of a certificate substantially in the form of Exhibit E."
- 4. Each Party hereby represents and warrants to the others that it has full authority to eter into this Amendment No. 8 upon the tetms and oondiltions hereof mad that the individual exceuting this Amendment No. 8 on its behalf has the requisite authority to bind that Party.
[Signatures to follow]
2 DMvIUS 29545515-2.0720'12.0011I
IN WITNESS WHEREOF, the Company, the Trustee, and the California Public Utilities Commission have set their hands and seals in agreement to these amendments effective as provided above.
SAN DIEGO GAS & ELECTRIC COMPANY
'4;-5P B r:
- 5&V-14ýz
.1*
Date:
Attest:
ooý 4 c THE BANK OF NEW YORK MELLON By:
&1
-62 Date:
9/19/]0 Attest:-
7avwerj(9Lý CALIF7ORN PUBLIC UTILITIES COMMISSION By:
4
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Attest:
j In-) I-L-If PIfA CL-44A/vo 3
DM_US 29545515-2.072042.OOLI
I Exhibit E CERT*FICATE FOR TRANSFER FROM TIlE QUALIFIED FUND TO THE NON-QUALIFIED FUND The Bank of New York Mellon, is Trustee
[Address]
This Certificate is submitted pursuant to Section 2.03 and Section 2.04 of the San Diego Gas & Elec-tric Company Nuclear Facilities Qualified CPUC Deconmi.isioning Master Trust for San Onofre Nuclear Generating Stations, dated
. All capitalized terms used in this Certificate and not otherwise defined herein shall have the meanings assigned to suclh terms in the Master Trust, In your capacity as Pt'rustee, you are hereby authorized and instructed as follows (complete one):
To pay $
in cash and the securities idenlified on the schedule atached hereto flom the [Unit niane's] qualified ltnd to that Unit's nonqualified fund.
With respect to such payment, the undersigned, being an Authorized Representative of San Diego Gas & Electric Company ("Company"), a California corporation, and, in such capacity, being authorized and empowered to execute and deliver this certificate, hereby certifies to the Trustee of the San Diego Gas & Electric Company Nuclea¢r Facilities Qualified CPUC Deconminssioning MasCvr Trust for San Onofre Nuclear Genierating Slations, pursunlnt to Section 2.03 and Section 2.04 of the Master Trust, as for lows:
- 1.
Any mnount stated herein to be paid from the San Diego Gas &
iEleetric Company Nuehar lacllifics Qualified CPUC Decommissioning Master Trust to the San Diego Gas & EJectric Company Nuclear Facilities Non-Qualified CPIJC Decommissioning Master Trust Is an Excess Contribution as set forth in Section 2.03 of the Master Trust.
[Signature to followI DMUS 2955 SSIS-2.0720;2.0011
IN WITNESS WHEREOF, the undersigned have executed this Certifieate in the capacity as shown below as of By:
Authorized Representative 5
DM_13 29545515-3.072042.0011I
Exhibit F CERTIFICATE FOR WITHDRAWAL OF EXCESS CONTRIBUTION The Bank of New York Mellon, as Trustee
[Address]
This Certificate is submitted pursuant to Section 2.03 of the San Diego Gas &
Electric Compamy Nuclear Facilities Qualified CPUC Decommissioning Master Trust for San Onofte Nuclear Cieneating Stations, dated
. All capitalized terms used in this Certificate and not otherwise defined herein shall have the meanings assigned to such terms in the Master Trust. In your capacity as Trustee, you are hereby authorized and instrtcted to pay $
in cash and the securities identified on the schedule attachod hereto to the Company from the Master Trust.
With respect to such payment, the undersigned, being an Authorized Representative of San Diego Gas & Electric Company ("Company"), a California corporation, and, in such capacity, being authorizod and empowered to execute and deliver this certificate, hereby certifies to the Trustee of ice San Diego Gas & Electric Company Nuclear Facilities Qualified CPUC Decommissioning Master Trust for San Onofre Nuclear Generating Stations, ptiUsuant to Section 2.03 of the Master Trust, that withdrawal pursuant to Section 2.03 of the Master Trust is appropriate and that and securities constitutes an Excess Contribution pursuant to Section 2.03 of the Master Trust.
IN WITNESS WHEREOF, the undersigned have executed this Certificate in the capacity as shown below as of By:
Authorized Representative 6
DM-US 29545515-2.072042.0011
AMENDMENT NO. 6 TO THE SAN DIEGO GAS & ELECTRIC COMPANY NUCLEAR FACILITIES NON-QUALIFIED CPUC DECOMMISSIONING MASTER TRUST AGREEMENT FOR SAN ONOFRE NUCLEAR GENERATING STATIONS This Amendment No. 6 made this __
day of
, 2011, by and between San Diego Gas & Electric Company ("Company") and The Bank of New York Mellon, a New York state bank, successor by operation of law to Mellon Bank, N.A ("Trustee").
WHEREAS, pursuant to Section 2.10 of the Nuclear Facilities Non-Qualified Decommissioning Master Trust for San Onof'e Nuclear Generating Stations dated as of June 29, 1992, as amended ("Agreement") between the Company and the Trustee, the parties specifically reserve the right to amend the Agreement; NOW, THEREFORE, the Company and the Trustee agree as follows:
- 1. Section 2.03 of the Agreement is hereby amended by adding the following language to the end thereof:
"Notwithstanding the preceding sentence or anything else in this Master Trust to the contrary, monies or securities can be transferred from the Master Trust to the San Diego Gas & Electric Company Nuclear Facilities Qualified CPUC Decommissioning Master Trust for the San Onofire Nuclear Generating Stations to the extent permitted by Section 468A of the Code and directed by the Company upon a presentation of a certificate substantially in the form of Exhibit E. The Trustee shall be fully protected in relying upon such certificate."
- 2. Each Party hereby represents and warrants to the others that it has full authority to enter into this Amendment No. 6 upon the terms and conditions hereof and that the individual executing this Amendment No. 6 on its behalf has the requisite authority to bind that Party.
[Signatures to follow]
DMRUS 29545512-2.072042.0011
IN WITNESS WHEREOF, the Company, the Trustee, and the California Public Utilities Commission have set their hands and seals in agreement to these amendments effective as provided above.
SAN DIEGO GAS & ELECTRIC COMPANY By:*
Date:
Attest: BANK OF N
?
Y THE BANK OF NEW YORK MIELLON By:
P~OA
!?h~hl Date:
Attest:
"7"v CALIFORNI PUBLIC UTILITIES COMMISSION B y:/
7 11,,/
D~t'.
o.
'1 Attest:
rý.) C)f4j 2
DMUS 29545512-2.072042.0011I
Exhibit E CERTIFICATE FOR TRANSFER FROM THE NON-QUALIFIED FUND TO THE QUALIFIED FUND The Bank of New York Mellon, as Trustee
[Address]
This Certificate is subnmitted pursuant to Section 2.03 of the San Diego Gas &
Electric Company Nuclear Facilities Non-Qualified CPUC Decommissioning Master Trust for San Onofre Nuclear Generating Stations, dated
. All capitalized terms used in this Certificate and not otherwise defined herein shall have the meanings assigned to such terms in the Mister Trust. In your capacity as Trustee, you are hereby authorized and instructed as follows (complete one):
To pay $
in cash and the securities identified on the schedule attached hereto from the [Unit name's] nonqualified fund to that Unit's qualified fund; or With respect to such payment, the undersigned, being an Authorized Representative of San Diego Gas & Electric Company ("Company"), a California corporation, and, in such capacity, being authorized and empowered to execute and deliver this certificate, hereby certifies to the Trustee of the San Diego Gas & Electric Company Nuclear Facilities Non-Qualified CPUC Decommissioning Master Trust for San Onofre Nuclear Generating Stations, pursuant to Section 2.03 of the Master Trust, as follows:
- 1.
Any amount stated herein to be paid from the San Diego Gas &
Electric Company Nuclear Facilities Non-Qualified CPUC Decommissioning Master Trust to the San Diego Gas & Electric Company Nuclear Facilities Qualified CPUC Decommissioning Master Trust is in accordance with the rules of section 468A of the Code and the regulations thereunder.
[Signature to follow]
3 DMUs 29545512-2.072042.0011
IN WITNESS WHEREOF, the undersigned have executed this Certificate in the capacity as shown below as of__
By:
Authorized Representative 4
DMUS 29545512-2.072042.0011I