ML20036A014
| ML20036A014 | |
| Person / Time | |
|---|---|
| Site: | Seabrook  |
| Issue date: | 04/30/1993 |
| From: | Eaton G PUBLIC SERVICE CO. OF NEW HAMPSHIRE |
| To: | Arnold W NEW HAMPSHIRE, STATE OF |
| References | |
| NUDOCS 9305070201 | |
| Download: ML20036A014 (12) | |
Text
,
Pum Service of New Hampshire April 30, 1993 SE- $
Vynn E. Arnold, Esquire Executive Director and Secretary New Hampshire Public Utilities Commission Eight Old Suncook Road, Building One Concord, New Hampshire 03301-5185 Re:
PSNH Nuclear Decommissioning Charge
Dear Mr. Arnold:
Enclosed please find the original and eight copies of a Technical Statement of Mr. Stephen R. Hall, Rate and Regulatory Services Manager, which includes an overview of the Nuclear Decommissioning Charge and a description of the calculation as contained in Attachments 1 through 5 to the Technical Statement. The purpose of Mr. Hall's Technical Statement is to present Public Service Company's annual update of the calculation of the Nuclear Decommissioning Charge (hereinafter " charge") and the calculation of the portion of the charge above the base level as assumed in the Rate Agreement.
On July 31, 1990, the New Hampshire Public Utilities Commission (hereinafter " Commission") issued Order No. 19,899 in NHPUC Docket No.
DR 90-019 vhich established a methodology by which PSNH vas to calculate the Nuclear Decommissioning Charge. In Order No. 20,475 issued May 11, 1992 in Docket No. DR 92-077, the Commission found that PSNH vas entitled to collect the increased contributions ordered by the Nuclear Decommissioning Financing Committee (hereinafter "NDFC") and that the recalculated charge should be reflected on the bills rendered by PSNH to its retail customers. On June 3, 1992, the Commission issued Order No. 20,498 which modified Order No. 20,475. Order No. 20,498 modified the charge calculation by mandating the use of a Delivery Efficiency Factor in place of a Retail Loss Adjustment Factor.
PSNH is proposing that the charge remain at the current level of $0.00012 per kilowatt-hour for the period June 1, 1993 through May 31, 1994. The assumptions underlying this charge for the applicable period are covered in detail in the Technical Statement and attachments. PSNH based the recalculation of the charge on the most recent funding schedule as approved by the NDFC in its Sixth Supplemental Order in Docket No. NDFC 91-1, date?
March 9, 1992, and forecasted kilowatt-hour sales for the period from June 1, 1993 through May 31, 1994.
e n, n n~
9305070201 930430 pp/
PDR ADOCK 05000443 I
/ f 1000ElmSt P O. Box 330,Monchester,NHO3105. Telephone [603)669-4000 TWX7 02207595
4 Pub 5c Service of tiew HampsNro page 2 P
Vynn E. Arnold, Esquire April 30, 1993 Executive Director and Secretary New Hampshire Public Utilities Commission Based upon an agreement reached with the Staff, PSNH vill not compound the increase in the charge above the base levels by the 5.5% increase which becomes effective on June 1, 1993. A more formal written stipulation vill t
be executed and filed for Commission approval which vill encompass some amendments to the Rate Agreement.
f Pursuant to RSA 162-F:19, III, the Rate Agreement and Commission Order No. 20,475, PSNH respectfully recommends that the Commission issue an Order Nisi that PSNH be required to publish a notice including the Order Nisi, and that the Commission approve the continuation of the current rate without a hearing. RSA 378:3.
Very truly yours, ofR j
Gerald M. Eaton Corporate Counsel GME:kn Enclosures k
^
O Public Service Company of.New Hampshire Nuclear Decommissioning Charge Service List Sen. Clesson J. Blaisdell Harold T. Judd, Esquire Senate Finance Committee Asst. Attorney General Room 120 - State House 25 Capitol Street Concord, NH 03301 Concord, NH 03301-6397 Rep. Elizabeth Hager, Chairman Robert A. Backus, Esquire Appropriations Committee 116 Lovell Street, P.O. Box 516 State House - Room 100 Manchester, NH 03105-Concord, NH 03301 Robert Cushing, Jr.
Georgie Thomas, State Treasurer 395 Vinnacunnet Road State House Annex - Room 121 Hampton, NH 03842 Concord, NHJ 03301 Mary.K. Hetcalf.
Richard M. Flynn, Commissioner Seacoast Anti-Pollution League Department of Safety.
5 Market-Street James H. Hayes Building Portsmouth, NH 03801 Hazen Drive Concord, NH 03301 Campaign for'Ratepayers' Rights-P.O. Box 563~
Villiam F. Boyle
~ Concord, NH 03301 463 New Zealand Road Seabrook, NH' 03874 Seabrook Selectmen's Office Seabrook Town Office Robert Romer Seabrook, NH 03874-NH Yankee Corporation Seabrook Station John Crosier P.O. Box 300 Business-& Industry Association Seabrook, NH 03874 122 North Main' Street Concord, NH 03301 Harry H. Bird, M.D., Commissioner Health & Velfare Department Director of Nuclear Reactor Regulation Hazen Drive Nuclear Regulatory Commission Concord, NH 03301
- Washington,-D.C. 20555 Rep. Villiam Kidder.
Shelley Nelkens 40 Barrett Road, P.O. Box 99 Box'164 New London, NH 03257 Antrim, NH' 03440 Alexander Kalinski Victoria Turner 1436 Elm Street, P.O. Box 1136
- 124 --Box:253 Manchedster, NH 03105 Bennington, NH 03442 Edward A. Haffer, Esquire John G..Tuthill Sheehan Law Firm P.O. Box 38-1000 Elm Street Lempster, NH 03606 Manchester, NH.03101 s
vy
-m
-e s
e e
Vinslow Melvin Amy Ignatius, General Counsel 88 Pleasant Street State of NH Concord, NH 03301 Public Utilities Commission Eight Old Suncook Road, Bldg. One Karen Briskie Concord, NH 03301-5185 Deputy State Treasurer State House Annex - Rm. 121 State of NH Concord, NH 03301 Public Utilities Commission Librarian Sam Grey, Court Reporter Eight Old Suncook Road, Bldg. One 30 Highland Avenue Concord, NH 03301-5185 Derry, NH 03038 Eugene F. Sullivan, Finance Director James Walker State of NH RFD 1, Box 86B Public Utilities Commission Laconia, NH 03246 Eight Old Suncook Road, Bldg. One Concord, NH 03301-5185 Gerald M. Eaton, Esq.
Public Service Company of NH Vynn E. Arnold, Esquire 1000 Elm Street, P.O. Box 330 Executive Director & Secretary Manchester, NH 03301-0330 State of NH Public Utilities Commission Michael D. Cannata, Jr.
Eight Old Suncook Road, Bldg. One Chief Engineer Concord, NH 03301-5185 Public Utilities Commission State of New Hamphsire Susan Chamberlin, Esquire Eight Old Suncook Road, Bldg. One Hearing Examiner Concord, NH 03301-5185 State of NH Public Utilities Commission Dr. Sarah P. Voll, Chief Economist Eight Old Suncook Road, Bldg. One Public Utilities Commission Concord, NH 03301-5185 State of New Hamphsire Eight Old Suncook Road, Bldg. One Concord, NH 03301-5185 Michael V. Holmes, Esq.
Office of the Consumer Advocate State of NH Eight Old Suncook Road, Bldg. One Concord, NH 03301-5185
STATE OF NEV HAMPSHIRE BEFORE THE PUBLIC UTILITIES COMMISSION TECHNICAL STATEMENT OF STEPHEN R. HALL INTRODUCTION My name is Stephen R. Hall. My business address is 1000 Elm Street, P.O.
Box 330, Manchester, New Hampshire 03105.
I am the Rate and Regulatory Services Manager in the Marketing Division of Public Service Company of New Hampshire (PSNH). I am responsible for FPPAC administration and rate administration, and certain aspects of the design of FPPAC. I am also responsible for various aspects of rate design, new service offerings, special contract development, rate policy and planning, special rate projects, and related regulatory matters.
PURPOSE OF THIS TECHNICAL STATEMENT The purpose of this technical statement is to present the annual update of the calculation of the Nuclear Decommissioning Charge which vill be shown as a memo item on retail customers' bills, and the calculation of the portion of the charge above the base level assumed in the Rate Agreement.
BACKGROUND AND OVERVIEW On July 31, 1990, the Commission issued Order No. 19,899 in Docket No.
DR 90-019 vhich established a basic formula and methodology by which PSNH vas to calculate the Nuclear Decommissioning Charge. In Order No. 20,475 issued May 11, 1992 in Docket No. DR 92-077, the Commission found that PSNH vas entitled to the increased contributions ordered by the Nuclear Decommissioning Financing Committee (NDFC) and that the recalculated Nuclear Decommissioning Charge should be reflected on customers' bills.
The Nuclear Decommissioning Charge is composed of a base charge and an increment above base. In addition, the recalculation of the Nuclear Decommissioning Charge Rate was to take effect on June 1 of each year to coincide with other scheduled tariff changes.
In Order No. 20,498, issued June 3, 1992 in Docket No. DR 92-077, which modified Order No. 20,475, PSNH vas ordered to modify the Nuclear Decommissioning Charge calculation to reflect the use of a Delivery Efficiency Factor rather than the Retail Loss Adjustment Factor.
In addition, a reconciliation mechanism for the amount above base vas-deemed
-l-
4
~
to be necessary because the sales forecast vill have to be reconciled to actual sales.
Finally, the Commission ruled that the issue of compounding of the Nuclear Decommissioning Charge over the levels assumed in the Rate Agreement needed to be resolved.
After meeting with the parties on June 23, 1992, PSNH submitted a letter to the Commission stating that it had reached agreement with the parties and that it vould not compound the increase in the Nuclear Decommissioning Charge above the levels assumed in the Rate Agreement by the 5.5% base rate increases.
PSNH is currently pursuing amendments to the Rate Agreement to codify its agreement. The increment above base vill not be compounded by the base rate increase which vill take effect on June 1, 1993.
CALCULATION OF THE NUCLEAR DECOMMISSIONING CHARGE The Nuclear Decommissioning Charge consists of two components:
the base payments for the period and payments above base for the period. The payments above base are also broken down into payments above base for the effective period and payments above base for the prior period (June 1992 through May 1993). The calculation of each of these components, before allocation to New Hampshire retail sales, is shown on Attachment 1.
Section I of Attachment I shows the calculation of the base payments for the effective period,Section II calculates the payment above base and Section III is the calculation of the prior period payments above base. shows PSNH's monthly contributions to the fund as determined by the Seventeenth Supplemental Order of the NDFC in Docket No. DF 87-1.
Under the terms of the Rate Agreement, PSNH is entitled to recovery of the retail allocation of the difference between these amounts and the amounts shown in Attachment 3.
The reference amounts are the costs known to the parties negotiating the Rate Agreement which vere assumed to be included in the 5.5% rate increases provided for under the Rate Agreement. Rate Agreement, Section 8. shows PSNH's monthly contribution to the Nuclear Decommissioning Fund which PSNH is required to make based on the most recent funding schedule. This revised funding schedule was approved by the NDFC in its Sixth Supplemental Order in Docket No. NDFC 91-1, dated March 9, 1992. shows the calculation of the estimated Nuclear Decommissioning Charge for the Effective Period beginning June 1, 1993. The charge for this Effective Period will be ?9.00038 per kilowatt-hour. The difference between the total Nuclear Decom~issioning Charge and the base amount (Part A) is $0.00012 per kilowatt-hour, which is the Part B amount.
Since this
$0.00012 per kilowatt-hour rate is the same amount which PSNH has included in its rates since June 1, 1992, no change from the current level is required.
(In addition, as stated above, PSNH is not compounding the Decommissioning Charge amount in excess of the levels assumed in the Rate 1
Agreement.)
',shows the calculation and amount of the reconciling adjustment for payments above base applicable to New Hampshire retail sales for the period ending May 1993.
l
SUMMARY
The Nuclear Decommissioning Charge for the effective period beginning June 1993 is $0.00038 per kilowatt-hour. The base Nuclear Decommissioning Charge is $0.00026 per kilowatt-hour (see Section II of Attachment 4) and the payment above base is $0.00012 per kilowatt-hour. The $0.00012 per kilowatt-hour payment above the base charge is the sum of the New Hampshire retail allocation of the payments above base for the Effective Period
($778,575, from Attachment 1,Section II) and for the prior period reconciling adjustment above base ($44,571, from Attachment 5), divided by estimated New Hampshire retail sales for the Effective Period (6,518,187,000 MVH, from Attachment 1).
No change to PSNH's rate level vill be required because the amount above base vill remain at $0.00012 per kilowatt-hour.
4 s
l 1
u.e noents wa PUBLIC SERVICE COMPANY OF NEW HAMPSHIRE SEABROOK NUCLEAR DECOMMISSIONING FUND FOR THE EFFECTIVE PERIOD BEGINNING JUNE 1993 CALCULATION OF B ASE PAYMENTS FOR THE EFFECTIVE PERIOD:
(Monthly contribution amounts are taken from Attachment 2) 2 Months (June and July 1993) x
$151,714
$303,428 1,577,830 10 Months (August 1993 through May 1994) x 157,783 Total Base Payments for the Period
$1,881,258 11.
CALCULATION OF PAYMENTS ABOVE B ASE FOR THE EFFECTIVE PERIOD:
(Monthly contribution amounts are taken from Attachment 3) 7 Months (June through December 1993) x
$218,019
$1,526,133 5 Months (January 1994 through May 1994) x 226,740 1,133,700 Total Payments for the Period
$2,659,833 Less Base Payments for the Effective Period (1,881,258)
Payments above Base for the Period
$778,575 IIL CALCULATION OF PAYMENTS ABOVE B ASE FOR THE PRIOR PERIOD:
(Monthly contribution amounts are taken from Attachments 2 and 3)
Base Amount:
$291,758 2 Months (June and July 1992) x
$145,879 10 Months (August 1992 through May 1993) x 151,714 1,517,140 Total Base Payments for the Period
$1,808,898 r
Payment above Base:
7 Months (June through December 1992) x
$209,634
$1.467,438 5 Months (January 1993 through May 1993) x 218,019 1,090,095 Total Payments for the Prior Period
$2,557,533 Less Base Payments for the Prior Period
($1.808,898)
Payments above Base for the Prior Period
$748,635 i
e i
~
PUBLIC SERVICE COMPANY OF NEW IIAMPSillRE Seabrook Nuclear Decommissioning Fund PSNH Monthly Contributions Reference Amounts
?
I Year 1
Ending Monthly i
7@l Contribution 1
1991
$140,268 1992 145,879 1993 151,714 I
1994 157,783 1995 164,094' 1996 170,658 1997 177,484 1998 184,583 1999 191, % 6 2000 199,645 2001 207,631
'i 2002 215,936 2003 224,573 2004 233,556 i
2005 242,898 2006 252,614
)
2007 262,719-l 2008 273,228 2009 284,157 2010 295,523 2011 307,344 2012 319,638 2013 332,424 2014 345,721 2015 359,550 2016 373,932 2017 388,889 i
2018 404.445 2019 420,623 2020 437,448 2021 454,946 2022 473,144 2023 492,070 2024 511,753 2025 532,223 2026 553,512 2027 575,652 2028 598,678 2029 622,625 2030 647,530 Amounts are based on the Seventeenth Supplemental Order of the Nuclear Decommissioning Financing Committee dated June 2,1989. 'Ihese amounts are included within the rate levels set forth in the i
November 22,1989 Agreement between Northeast Utilities Service Company and the Governor and Attorney General of the State of New IIarnpshire, for those years which are within the " fixed rate period"
' of the plan.
i
e PUBLIC SERVICE COMPANY OF NEW IIAMPSHIRE Seabrook Nuclear Decommissioning Fund PSNil Monthly Contributions Based on Sixth Supplemental Order in Docket No. NDFC 91-1 Year Ending Monthly 12/31 Contribution Starting 4/1/92 1992
$209,634 1993 218,019 1994 226,740 1995 235,810 1996 245,242 1997 255,052 1998 265,254 1999 275,864 2000 286,899 2001 298,375 2002 310,310 2003 322,722 2004 335,631 i
2005-349,056 2006 363,018 2007 377,539 2008 392,641 2009 408,347 2010 424,681 2011 441,668 l
2012
- 459,335 2013 477,708 2014 496,816 2015 516,689 2016 537,357 2017 558,851 2018 581,205 2019 604,453 2020 628,631 2021 653,776 2022 679,927 i
2023 707,124 2024 735,409 2025 764,825 2026 795,418 Amounts are based on the schedule approved by the Nuclear Decommissioning Financing Committee in its Sixth Supplemental Order in Docket No. NDFC 91-1, dated March 9,1992.
l i
i
PUBLIC SERVICE COMPANY OF NEW HAMPSHIRE A?tachmeat 4 CALCULATION OF THE NUCLEAR DECOMMISSIONING CHARGE FOR THE EFFECTIVE PERIOD BEGINNING JUNE 1,1993 The following is the calculation of the Nuclear Decommissioning Charge for the Effective Period beginning June 1,1993 to be shown as a memo item on customers' bills. This calculation is based upon Estimated Nuclear Decommissioning Payments Subject to Adjustment and Estimated KWH Requirements for the twelve month period beginning June 1,1993. Any difference between actual and estimated data pertaining to Nuclear Decommissioning Payments above or below base amounts will be reflected in the Reconciling Adjustment used in the calculation of the Nuclear Decommissioning Charge for the next succeeding Effective Period.
- 1. Estimated Annual Data for the Effective Period beoinnina June 1,199];
Nuclear Decommissioning Payments:
Base Amount
$1.881,258 Payment Above(Below) Base
$778,575 KWH Required (KWH Req.)
7,777,652,000 KWH Delivery E!faciency Factor (DE) 0.920438 II. Calculation of Part A of Nuclear Decommissionina Charce:
Base Amount = Total Part A Nuclear Decommissioning Charge KWH Req. x DE
$1,881,258 30.00026279 7,777,652,000 x 0.920438 Rounded 1o Five Decimal Places
$0.00026 111. Calculation of Part B of the Nuclear Decommissionina Charoe:
A. Payment Above Base 4
Payment Above Base KWH Req. x DE
~
$778,575
$0.00010876
=
7,777,652,000 x 0.920438 B. Reconciling Adjustment for the Period Ending May 31,1993 Act. Part B NDC Rate less Est. Part B NDC Rate Times Actual N.H. Retail Sales
=
Est. N.H. Retail Sales (Annual period Beginning 6/1/93)
(NDCa-NDCp) x SAa
=
SAf
(
$0.00012/15 -
0.00012000 )x 6.235,234,000 0.00000684
=
6,518,187,000 Total Part B Nuclear Decommissioning Charge Rate
$0.00011559 Rounded to Five Decimal Places 0.00012 IV. Nuclear Decommissionino Charoe (Part A + Part B):
Effective Period beginning June 1,1993 Rounded to Five Decimal Places
$0.00038 /KWH
PUBLIC SERVICE COMPANY OF NEW HAMPSHIRE t
CALCULATION OF THE (OVER)/UNDERRECOVERY OF PART B NUCLEAR DECOMMISSIONING CHARGE FOR THE PERIOD ENDING MAY 31,1993
- 1. Data for the Period Endino May 31.1993 (twelve months):
Nuclear Decommissioning Payment Above Base
$748,635 KWH Required (KWH Req.)
7,523,372,000 KWH N.H. Retail Sales 6,235,234,000 KWH Delivery Efficiency Factor (DE) 0.924513 Prior Period Reconciling Adjustment
$121,683 II. Part B (Over)/Underrecoverv:
Nuclear Decommissioning Payment Above Base
$748,635 Divided by(KWH Req x DE)
$0.00010763 Prior Period Reconciling Adjustment 0.00001952 s
Part B Nuclear Decommissioning Charge Rate (NDCa)
$0.00012715 Less Estimated Rate (NDCp) 0.00012000 Difference
$0.00000715 Times N.H. Retail Sales (SAa) 6,235,234,000 KWH (Over)/Underrecovery
$44,571 t
t e
-