ML17090A152

ISFSI -10 CFR 50.75(f)(1), 10 CFR 50.82(a)(8)(v), 10 CFR 50.82 (8)(vii), and 10 CFR 72.30(c) Decommissioning Funding Status Report

ML17090A152
Person / Time
Site:	San Onofre
Issue date:	03/28/2017
From:	Kay J Southern California Edison Co
To:	Document Control Desk, Office of Nuclear Material Safety and Safeguards, Office of Nuclear Reactor Regulation
References
Download: ML17090A152 (10)

Text

James A. Kay Manager, Regulatory Affairs An EDISON INTERNATIONAL'" Company March 28, 2017 10 CFR 50.75 10 CFR 50.82 10 CFR 72.30 ATTN: Document Control Desk U.S. Nuclear Regulatory Commission Washington, D. C. 20555-0001

Subject:

Docket Nos. 50-206, 50-361 and 50-362, 72-41 10 CFR 50.75(f)(1), 10 CFR 50.82(a)(8)(v), 10 CFR 50.82 (8)(vii), and 10 CFR 72.30(c) Decommissioning Funding Status Report San Onofre Nuclear Generating Station Units 1, 2 and 3 and ISFSI

Dear Sir or Madam:

As required by 10 CFR 50. 75(f)(1 ), 10 CFR 50.82(a)(8)(v), 10 CFR 50.82(a)(8)(vii), and 10 CFR 72.30(c), this letter provides the status of the decommissioning funding for San Onofre Nuclear Generating Station (SONGS) Units 1, 2, and 3 and the SONGS Independent Spent Fuel Storage Installation (ISFSI) as of December 31, 2016 (See Enclosure).

Based on the requirements in 10 CFR 50. 75(f)(1 ), this information is reported on an annual basis for SONGS Units 1, 2, and 3 because the units were permanently shut down before the end of their licensed lives. In addition, based on the requirements in 10 CFR 72.30(c), information demonstrating the adequacy of funding for the SONGS ISFSI is reported at intervals not to exceed three years and is included ..

The required information for Southern California Edison, San Diego Gas & Electric, the City of Anaheim, and the City of Riverside is provided in the Enclosure.

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

If you have any questions regarding this matter, please contact me at (949) 368-7418.

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Enclosure:

San Onofre Nuclear Generating Station Units 1, 2 and 3 and ISFSI Decommissioning Funding Status Report for Calendar Year 2016 cc: K. Kennedy, Regional Administrator, NRC Region IV

JW55 o7 W. C. Allen, NRC Project Manager, SONGS ISFSI M. G. Vaaler, NRC Project Manager, San Onofre Units 1, 2 and 3

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P. 0. Box 128 µtvf ~S San Clemente, CA 92674-0128

Enclosure San Onofre Nuclear Generating Station Units 1, 2, and 3 and Independent Spent Fuel Storage Installation (ISFSI)

Decommissioning Funding Status Report for Calendar Year 2016 1

San Onofre Nuclear Generating Station Units 1, 2, and 3 and Independent Spent Fuel Storage Installation (ISFSI)

Decommissioning Funding Status Report For Calendar Year 2016 San Onofre Unit 1 was a pressurized water reactor (PWR) rated at 1347 MWt. San Onofre Units 2 and 3 were pressurized water reactors (PWR) rated at 3438 MWt.

Provided below is the information required by 10 CFR 50.75(f)(1) and 10 CFR 50.82(a)(8)(v) and (vii) for San Onofre Units 1, 2, and 3; and the information required by 10 CFR 72.30(b) for the San Onofre ISFSI. This information is reported every year for San Onofre Units 1, 2, and 3 because they ceased operation before the end of their licensed lives and are currently being decommissioned.

The San Onofre ISFSI is located on the partially decommissioned site of San Onofre Unit 1, and is operated under a 10 CFR 72 General License issued to the holders of a 10 CFR 50 license.

The San Onofre Unit 1 co-owners are reported as follows:

Southern California Edison (SCE) 80.00 %

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

100.00 %

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:

Unit 1 Unit 2 Unit 3 Owner Decommissioning Decommissioning Decommissioning Liabilit Liabilit Liabilit SCE 80.00% 75.7363% 75.7475%

SDG&E 20.00% 20.00% 20.00%

Anaheim 0.00% 2.4737% 2.4625%

Riverside 0.00% 1.7900% 1.7900%

All dollar amounts are in 100% share, 2016 dollars.

1) The estimated costs to decommission San Onofre Units 1, 2, and 3, and the San Onofre ISFSI, including all decommissioning and spent fuel storage costs estimated to be required pursuant to 10 CFR 50.75(b) and (c); 10 CFR 50.54(bb); and 10 CFR 72.30(b) are shown below:

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a) The minimum amount calculated by the method prescribed by 10 CFR 50.75(c).< 1l San Onofre Unit 1<2l San Onofre Unit 2 San Onofre Unit 3 N/A $ 494.4 million $ 494.4 million b) The site-specific estimates for decommissioning includes the following radiological decommissioning costs associated with terminating the site license pursuant to 10 CFR 50.75(b); non-radiological site restoration costs; spent fuel storage costs pursuant to 10 CFR 50.54(bb); and ISFSI decommissioning costs pursuant to 10 CFR 72.30(b):

San Onofre Unit 1<3l Estimate of License Termination Costs $ 122.0 million Less: Lie. Term. Costs through 12/31/2016 $ 0.5 million "To Go" License Termination Costs $ 121 .5 million Estimate of Site Restoration Costs $ 95.0 million Less: Site Restor. Costs through 12/31/2016 =$_ _..;_0:. . . :.4-=-m..:. . :.=il =io:. :. . :.n "To Go" Site Restoration Costs $ 94.6 million Estimate of Fuel Storage Costs $ 26.8 million Less: Fuel Storage Costs through 12/31/2016 _,$'------=0....:.....1.:...._m:....:....:..:.ill:.:..:io~n "To Go" Fuel Storage Costs $ 26.7 million Estimate of ISFSI Decommissioning Costs $ 5.2 million Total Unit 1 "To Go" Costs as of 1/1/2017 $ 248.0 million The San Onofre ISFSI is located on the partially decommissioned site of San Onofre Unit 1. The San Onofre Unit 1 site-specific decommissioning cost estimate includes the cost to remediate the San Onofre Unit 1 site as required to meet license termination criteria.

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San Onofre Unit 2<4>

Estimate of License Termination Costs $1,082.2 million Less: Lie. Term. Costs through 12/31/2016 $ 210.7 million "To Go" License Termination Costs $ 871.5 million Estimate of Site Restoration Costs $ 441.4 million Less: Site Restor. Costs through 12/31/2016 $ 84.0 million "To Go" Site Restoration Costs $ 357.4 million Estimate of Fuel Storage Costs $ 636.3 million Less: Fuel Storage Costs through 12/31/2016 $ 203.8 million "To Go" Fuel Storage Costs $ 432.5 million Estimate of ISFSI Decommissioning Costs $ 17.3 million Total Unit 2 "To Go" Costs as of 1/1/2017 $1,678. 7 million San Onofre Unit 3<4>

Estimate of License Termination Costs $1, 127.7 million Less: Lie. Term. Costs through 12/31/2016 $ 210.8 million "To Go" License Termination Costs $ 916.9 million Estimate of Site Restoration Costs $ 625.4 million Less: Site Restor. Costs through 12/31/2016 $ 89.8 million "To Go" Site Restoration Costs * $ 535.6 million Estimate of Fuel Storage Costs $ 667.2 million Less: Fuel Storage Costs through 12/31/2016 $ 198.5 million "To Go" Fuel Storage Costs $ 468.7 million Estimate of ISFSI Decommissioning Costs $ 17.3 million Total Unit 3 "To Go" Costs as of 1/1/2017 $1,938.5 million The site-specific decommissioning cost estimates for San Onofre Units 1, 2, and 3 and the San Onofre ISFSI include: (1) the cost to perform all decommissioning activities; (2) the cost of meeting the 10 CFR 20.1402 radiological criteria for unrestricted site use; and (3) an adequate contingency factor of 25% for all costs.

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2) Each San Onofre co-owner has established one or more external sinking trust fund accounts as provided in 10 CFR 50.75(e)(1)(ii) for their respective shares of the San Onofre Units 1, 2, and 3 decommissioning obligation, which also includes the San Onofre ISFSI. The Decommissioning Trust Fund amounts remaining at the end of calendar year 2016 (net of pending Trust Fund withdrawals and estimated capital gains taxes) are:(S)(5)(7 )

Co-Owner San Onofre Unit 1 San Onofre Unit 2 San Onofre Unit 3 SCE $ 278.7 million $ 1, 184.7 million $ 1,359.3 million SDG&E (7) $ 142.3 million $ 352.5 million $ 405.2 million Anaheim (7) N/A $ 55.4 million $ 55.4 million Riverside (7) N/A $ 30.0 million $ 33.0 million TOTAL $ 421.0 million $ 1,622.6 million $ 1,852.9 million

3) Each San Onofre co-owner deposits its decommissioning fund contributions into their respective external sinking fund accounts as provided in 10 CFR 50.75(e)(1)(ii). The annual amounts projected to be collected in 2017 are:

Co-Owner San Onofre Unit 1 San Onofre Unit 2 San Onofre Unit 3 SCE $ 0.0 million $ 0.0 million $ 0.0 million SDG&E (7) $ 0.0 million $ 0.0 million $ 0.0 million Anaheim (7) N/A $ 0.0 million $ 0.0 million Riverside (7) N/A $ 0.0 million $ 0.0 million TOTAL $ 0.0 million $ 0.0 million $ 0.0 million

4) The amounts spent on San Onofre Units 1, 2, and 3 decommissioning work performed during 2016 are summarized below:

Cost Category San Onofre Unit 1 San Onofre Unit 2 San Onofre Unit 3 License Term. $ 0.5 million $ 43.5 million $ 43.7 million Site Restoration $ 0.3 million $ 1.0 million $ 5.1 million Spent Fuel Storage $ 0.1 million $ 62.7 million $ 65.5 million ISFSIDecom. ~$~~0~.0~m-=-:..:.:.:ill~io~n'---~~$~~0~.0~m~ill~io~n:.,__~~$~~0~.0::......:..:..m=il~lio~n TOTAL $ 0.9 million $ 107.2 million $ 114.3 million

5) The composite escalation rate and after tax investment rates of return for San Onofre Units 1, 2, and 3 Decommissioning are summarized below:

Composite Rate San Onofre Unit 1 San Onofre Unit 2 San Onofre Unit 3 Rate of Return 3.21% 3.74% 3.74%

Escalation 2.69% 2.29% 2.29%

The composite investment rates of return less the composite escalation rates yield co~posite real earnings rates less than the 2% real rate of return allowed under 10 CFR 50. 75(e)(1 )(ii).

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6) None of the co-owners of San Onofre Units 1, 2, and 3 or the San Onofre ISFSI is 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.

7) The amounts of decommissioning funds available as of December 31, 2016 for San Onofre Units 1, 2, and 3 License Termination, Site Restoration, Spent (Irradiated) Fuel Management, and ISFSI Decommissioning costs are shown in the tables below:(5)

Estimated "To Go" Cost . 12/31/2016 San Onofre Unit 1 Decommissioning Ratios Net Trust Balance Cost License Termination Costs $ 121.5 million 49.0% $ 206.3 million Site Restoration Costs $ 94.6 million 38.1% $ 160.6 million Spent Fuel Management Costs $ 5.2 million 10.8% $ 45.3 million ISFSI Decommissioning Costs $ 26.7 million 2.1% $ 8.8 million TOTAL $ 248.0 million 100.0% $ 421.0 million Estimated "To Go" Cost 12/31/2016 San Onofre Unit 2 Decommissioning Ratios Net Trust Balance Cost License Termination Costs $ 871.5 million 51.9% $ 842.3 million Site Restoration Costs $ 357.4 million 21.3% $ 345.5 million Spent Fuel Management Costs $ 432.5 million 25.8% $ 418.1 million ISFSI Decommissioning Costs $ 17.3 million 1.0% $ 16.7 million TOTAL $ 1,678. 7 million 100.0% $ 1,622.6 million Estimated "To Go" Cost 12/31/2016 San Onofre Unit 3 Decommissioning Ratios Net Trust Balance Cost License Termination Costs $ 916.9 million 47.3% $ 876.4 million Site Restoration Costs $ 535.6 million 27.6% $ 512.0 million Spent Fuel Management Costs $ 468. 7 million 24.2% $ 448.0 million ISFSI Decommissioning Costs $ 17.3 million 0.9% $ 16.5 million TOTAL $ 1,938.5 million 100.0% $ 1,852.9 million 6

8) Key assumptions pertaining to spent fuel storage and ISFSI decommissioning:

San Onofre Unit 1:

• Permanently retired on November 30,_ 1992

• 395 fuel assemblies in 17 canisters are located in the San Onofre ISFSI

• 1 canister of Greater Than Class C (GTCC) waste is located in the San Onofre ISFSI

• The U.S. Department of Energy (DOE) will commence transporting spent fuel assemblies in 2028

• DOE will remove last of San Onofre Unit 1 fuel from the ISFSI by 2034 San Onofre Unit 2:

• Permanently ceased operations on June 7, 2013

• 408 fuel assemblies in 17 canisters are currently located in the San Onofre ISFSI

• 1,318 fuel assemblies are scheduled to be placed in canisters in the San Onofre ISFSI by 2019

• Greater Than Class C (GTCC) waste will be placed in the San Onofre ISFSI per schedule to be developed by Decommissioning General Contractor

• DOE will commence transporting spent fuel assemblies in 2024<9 )

• DOE will remove last San Onofre Units 2 & 3 fuel from the ISFSI by 2049 San Onofre Unit 3:

• Permanently ceased operations on June 7, 2013

• 384 fuel assemblies in 16 canisters are currently located in the San Onofre ISFSI

• 1,350 fuel assemblies are scheduled to be placed in canisters in the San Onofre ISFSI by 2019

• Greater Than Class C (GTCC) waste will be placed in the San Onofre ISFSI per schedule to be developed by Decommissioning General Contractor

• DOE will commence transporting spent fuel assemblies in 2024<9)

• DOE will remove last San Onofre Units 2 & 3 fuel from the ISFSI by 2049 San Onofre ISFSI:

• The San Onofre ISFSI will be decommissioned and the remaining plant and ISFSI site will be decontaminated to meet 10 CFR 20.1402 site release criteria for unrestricted use as required to terminate the Part 50 General License by 2051.

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Notes:

(1) NUREG-1307 Revision 16, issued March 2017.

(2) The minimum amount required for the radiological decommissioning costs of San Onofre Unit 1 is provided per the 10 CFR 50.75 formula.

This minimum amount is no longer relevant, however, because much of the radiological decommissioning of San Onofre Unit 1 has already been completed.

(3) The site-specific decommissioning cost estimate for San Onofre Unit 1 that was submitted to the California Public Utilities Commission (CPUC) on March 1, 2016, includes the radiological costs associated with terminating the site license, non-radiological costs, and fuel storage costs.

(4) 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. The CPUC approved this cost estimate in Decision 16-04-019 on April 21, 2016.

(5) During the period between June 7, 2013 and December 31, 2016, SCE incurred costs of $498.5 million for San Onofre Unit 2 and $499.1 million for San Onofre Unit 3 (100% share, 2016$). Some of the San Onofre decommissioning co-owners have not yet withdrawn funds for all or part of these costs from their Decommissioning Trusts. Therefore, the Net Balances are the differences between the December 31, 2016 Decommissioning Trust Balances and the 2013-2016 incurred or accrued costs.

(6) Pursuant to 10 CFR 72.30(e)(5), power reactor licensees are authorized to use the financial assurance methods provided for in 10 CFR 50.75(e). All four San Onofre co-owners recover the cost of decommissioning pursuant to cost-of-service rate regulation and, therefore, are eligible to provide assurance using the external sinking fund method provided for in 10 CFR 50.75(e)(1)(ii). To the extent the decommissioning costs are fully funded and annual deposits are no longer required, the Co-Participants provide assurance using the prepayment method provided for in 10 CFR 50.75(e)(1)(i).

SCE and SDG&E are also required to accumulate sufficient funds to decommission the San Onofre facility under the California Nuclear Facilities Decommissioning Act, CA Public Utilities Code Section 8321, et seq. The CPUC has construed the San Onofre decommissioning 8

obligation to include: (1) radiological decommissioning as required to terminate the NRC licenses, (2) spent fuel storage (including ISFSI decommissioning), and (3) site restoration as required to terminate the San Onofre site lease contracts granted by the U.S. Department of the Navy and the California State Lands Commission.

Under CA Public Utilities Code Section 8326(a)(2), SCE and SDG&E are required to update their site-specific nuclear facility decommissioning cost estimates periodically to reflect changes in decommissioning regulation, technology, and economics, for the purpose of adjusting contribution levels to their decommissioning trust.

Under CA Public Utilities Code Sections 8326(b), 8327, 8328, and 8329, the CPUC periodically reviews SCE and SDG&E's site-specific decommissioning cost estimates for the purpose of considering changes in electrical rates to ensure that sufficient funds will be available for payment of all decommissioning costs. The Cities of Anaheim and Riverside are not under the jurisdiction of the CPUC.

(7) SCE is submitting information with respect to the San Onofre co-owners, SDG&E, Anaheim, and Riverside, on their behalf, and they are responsible for the completeness and accuracy of their respective information.

(8) The current site-specific decommissioning cost estimate for San Onofre Units 2 and 3 assumes that the DOE will commence transporting spent fuel assemblies to a deep geologic repository in 2024. The 2017 update to this cost estimate will assume that the DOE transporting will commence in 2028, consistent with the 2016 San Onofre Unit 1 site-specific decommissioning cost estimate. This assumption will be updated periodically due to the ongoing uncertainties regarding the availability of a permanent repository for spent fuel.

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