ML15092A161

Submittal of Decommissioning Funding Status Report

ML15092A161
Person / Time
Site:	San Onofre
Issue date:	03/31/2015
From:	Brabec R Southern California Edison Co
To:	Document Control Desk, Office of Nuclear Reactor Regulation
References
Download: ML15092A161 (6)

Text

SOUTHERN CALIFORNIA Richard C. Brabec AnJEDISON Principal Manager, Nuclear Regulatory Affairs and Emergency Planning An EDISON INTERNA TIONAL& Company 10 CFR 50.75 10 CFR 50.82 March 31, 2015 ATTN: Document Control Desk U. S. Nuclear Regulatory Commission Washington, D. C. 20555-0001

Subject:

Docket Nos. 50-361 and 50-362 10 CFR 50.75(f)(1), 10 CFR 50.82(a)(8)(v-vii), and 10 CFR 72.30(b)

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

Dear Sir or Madam:

As required by 10 CFR 50.75(f)(1), and 10 CFR 50.82(a)(8)(v)-(vii), this letter provides the status of the decommissioning funding for San Onofre Nuclear Generating Station (SONGS)

Units 2, and 3 as of December 31, 2014. The required information is provided in the enclosure for Southern California Edison, San Diego Gas & Electric, the City of Anaheim, and the City of Riverside.

Based on the requirements in 10 CFR 50.75(f)(1), this information is reported on an annual basis for SONGS Units 2 and 3 because the plants were permanently shut down before the end of their licensed lives. SONGS Units 2 and 3 were permanently shut down during 2013, and their decommissioning is currently being planned.

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

If you have any questions regarding this matter, please contact Ms. Andrea Sterdis at (949) 368-9985.

fly,

Enclosure:

SONGS Units 2 and 3 Decommissioning Funding Status Report for Calendar Year 2014 cc: M. Dapas, Regional Administrator, NRC Region IV R. L. Kellar, Region IV, Branch Chief, Repository and Spent Fuel Safety T. Wengert, NRC Project Manager, San Onofre Units 2 and 3 P.O. Box 128 4001 San Clemente, CA 92672 (949) 368-7418 PAX 87418 Fax: (949) 368-7575 John.Brabec@sce.com

Enclosure San Onofre Nuclear Generating Station Units 2 and 3 Decommissioning Funding Status Report for Calendar Year 2014 Page 1 of 5

San Onofre Nuclear Generating Station Units 2 and 3 Decommissioning Funding Status Report For Calendar Year 2014 San Onofre Units 2 and 3 were pressurized water reactors (PWR) rated at 3410 MWt.

Provided below is the information required by 10 CFR 50.75(f)(1) and 10 CFR 50.82(v)(8)(v-vii) for San Onofre Units 2 and 3. This information is reported every year for San Onofre Units 2 and 3 because they closed before the end of their licensed lives and are currently being decommissioned.

The San Onofre Units 2 and 3 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 75.7363% 75.7475%

SDG&E 20.0000% 20.0000%

Anaheim 02.4737% 02.4625%

Riverside 01.7900% 01.7900%

All dollar amounts are in 100% share, 2014 dollars.

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

$ 528.2 million $ 528.2 million b) The San Onofre Unit 2 site-specific estimate for decommissioning includes the following radiological decommissioning costs associated with terminating the site license, non-radiological site restoration costs, and spent fuel storage 1

costs:0 )

Page 2 of 5

San Onofre Unit 2 Estimate of Radiological Costs $1,034.2 million Less: Actual Radiological Costs through 12/31/2014 $ 94.8 million "To Go" Radiological Costs $ 939.4 million Estimate of Site Restoration Costs $ 423.3 million Less: Actual Site Restoration Costs through 12/31/2014 $ 53.7 million "To Go" Site Restoration Costs $ 369.6 million Estimate of Fuel Storage Costs $ 623.2 million Less: Actual Fuel Storage Costs through 12/31/2014 $ 77.7 million "To Go" Fuel Storage Costs $ 545.5 million Total SONGS Unit 2 "To Go" Costs as of 1/1/2015 $1,854.5 million c) The San Onofre Unit 3 site-specific estimate for decommissioning includes the following radiological decommissioning costs associated with terminating the site 1

license, non-radiological site restoration costs, and spent fuel storage costs:0 )

San Onofre Unit 3 Estimate of Radiological Costs $1,078.0 million Less: Actual Radiological Costs through 12/31/2014 $ 94.5 million "To Go" Radiological Costs $ 983.5 million Estimate of Site Restoration Costs $ 599.5 million Less: Actual Site Restoration Costs through 12/31/2014 $ 53.8 million "To Go" Site Restoration Costs $ 545.7 million Estimate of Fuel Storage Costs $ 653.0 million Less: Actual Fuel Storage Costs through 12/31/2014 $ 76.9 million "To Go" Fuel Storage Costs $ 576.1 million Total SONGS Unit 3 "To Go" Costs as of 1/1/2015 $2,105.3 million

2) The Decommissioning Trust Fund amounts remaining at the end of calendar year 2014 (net of estimated capital gains taxes) are:(2):

Owner San Onofre Unit 2 San Onofre Unit 3 SCE $ 1,465.4 million $ 1,641.3 million SDG&E (3) $ 410.9 million $ 465.3 million Anaheim (3) $ 61.8 million $ 67.2 million Riverside (3) $ 37.7 million $ 40.6 million TOTAL $ 1,975.8 million $ 2,214.4 million Less: 2013-2014 $ 226.2 million $ 225.2 million Net Balances $ 1,749.6 million $ 1,989.2 million Page 3 of 5

3) The annual amounts projected to be collected in 2015 are:

Owner San Onofre Unit 2 San Onofre Unit 3 SCE $ 0.0 million $ 0.0 million SDG&E (3) $ 5.8 million $ 2.2 million Anaheim (3) $ 0.0 million $ 0.0 million Riverside (3) $ 0.0 million $ 0.0 million TOTAL 5.8 million $ 2.2 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 amounts spent on San Onofre Units 2 and 3 decommissioning work performed during 2014 are summarized below:

Cost Cateqory San Onofre Unit 2 San Onofre Unit 3 License Termination $ 55.4 million $ 55.1 million Site Restoration $ 12.7 million $ 12.8 million Spent Fuel Storage $ 38.6 million $ 38.3 million TOTAL $ 106.7 million $ 106.2 million

5) The composite escalation rate for San Onofre Units 2 and 3 Decommissioning is 3.07%.

6) The after-tax composite investment rate of return for the San Onofre Units 2 and 3 Decommissioning Trust Funds is 3.58%.

The composite investment rate of return (3.58%) less the composite escalation rate (3.07%) yields a composite real earnings rate less than the 2% real rate of return allowed under 10 CFR 50.75(e)(1)(ii).

7) 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.

Page 4 of 5

8) The amounts of decommissioning funds available as of December 31, 2014 for the costs to manage San Onofre Units 2 and 3 irradiated fuel, are shown in the table below:(2):

Estimated Cost "To Go" Ratios in 12/31/2014 SONGS 2 Decommissioning Cost Trust Balance Cost Estimate License Termination Costs $ 939.4 million 50.7% $ 886.2 million Site Restoration Costs $ 369.6 million 19.9% $ 348.7 million Spent Fuel Management Costs $ 545.5 million 29.4% $ 514.7 million TOTAL $ 1,854.5 million 100.0% $ 1,749.6 million Estimated Cost "To Go" Ratios in 12/31/2014 SONGS 3 Decommissioning Cost Trust Balance Cost Estimate License Termination Costs $ 983.5 million 46.7% $ 929.3 million Site Restoration Costs $ 545.7 million 25.9% $ 515.6 million Spent Fuel Management Costs $ 576.1 million 27.4% $ 544.3 million TOTAL $ 2,105.3 million 100.0% $ 1,989.2 million Notes:

(1) The site-specific decommissioning cost estimate for San Onofre Units 2 and 3 that was submitted to the NRC on September 23, 2014 and to the California Public Utilities Commission (CPUC) on December 10, 2014, includes the radiological costs associated with terminating the site license, non-radiological costs, and fuel storage costs.

(2) During the period between June 7, 2013 and December 31, 2014, SCE incurred costs of $226.2 million for San Onofre Unit 2 and $225.2 million for San Onofre Unit 3. These costs have not yet been withdrawn from the Decommissioning Trusts. Therefore, the Net Balances are the differences between the December 31, 2014 Decommissioning Trust Balances and the 2013-2014 incurred costs.

(3) 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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