ML112371779

2010 DFS Report Analysis for Palo Verde Nuclear Generating Station, Unit 3

ML112371779
Person / Time
Site:	Palo Verde
Issue date:	11/14/2011
From:	Szabo A Division of Inspection and Regional Support
To:
Szabo, A L, NRR/DPR, 415-1985
References
Download: ML112371779 (4)

Text

Datasheet 1 Plant name: Palo Verde Nuclear Generating Station, Unit 3 Docket Number: 50-530 1 The minimum financial assurance (MFA) estimate pursuant to 10 CFR 50.75(b) & (c): $469,000,000 Did the licensee identify the amount of estimated radiological funds? (Y/N) Y 2 The total amount of dollars accumulated at the end of the appropriate year: (see below)

Licensee:  % Owned: Category: Amount in Trust Fund:

Arizona Public Service Company (APS) 29.10% 1 $140,976,000 Salt River Project Agricultural Improvement and 17.49% 1 $80,105,000 Power District (SRP)

El Paso Electric Company (EPE) 15.80% 1 $48,601,000 Southern California Edison Company (SCE) 15.80% 1 $263,898,000 Public Service Company of New Mexico (PNM) 10.20% 1 $46,123,000 Southern California Public Power Authority 5.91% 1 $57,397,000 (SCPPA)

Los Angeles Department of Water and Power 5.70% 1 $39,875,000 (LADWP)

Total Trust Fund Balance $676,975,000 3 Schedule of the annual amounts remaining to be collected: (provided/none) provided 4 Assumptions used in determining rates of escalation in decommissioning costs, rates of earnings on decommissioning funds, and rates of other factors used in funding projections: (see below)

Post-RAI Rate of Rate(s) of PUC RAI PUC Allowed Rates Real Rate Allowed through Decom Return on Escalation Rate Other Verified Needed Verified through Determined of Return (Y/N)

Earnings Factors (Y/N) (Y/N) (Y/N) Decom (Y/N) (Y/N)

Variable1 Variable1 Variable1 N Y Y N N2 5 Any contracts upon which the licensee is relying? (Y/N) N 6 Any modifications to a licensee's method of providing decommissioning funding assurance? (Y/N) N 7 Any material changes to trust agreements? (Y/N) N If a change has occurred, the reviewer will document on this sheet that a change has occurred and identify the reviewer who will evaluate the change: (see below) 1 Rates provided are considered variable because the rates are not consistent throughout the licensee(s) and/or years of operation.

2 For EPE, year-to-year rates cannot be determined from the submitted information since they are determined by the FERC, the Public Utility Commission of Texas and the New Mexico Public Regulation commission, which have issued various orders and rules related to decommissioning funding, investment criteria, and/or fund operations.

Signature: Michael Purdie and JoAnn Simpson Date: 8/10/2011 Signature: Aaron L. Szabo Spreadsheet created by: Aaron Szabo, Shawn Harwell Date: 8/22/2011 Formulas verified by: Clayton Pittiglio

Datasheet 2 Plant name: Palo Verde Nuclear Generating Station, Unit 3 Docket Number: 50-530 Month: Day Year:

Date of Operation: 12 31 2010 Termination of Operations: 11 25 2027 Latest Latest BWR/PWR MWth 1986$ ECI Base Lx Lx Px Base Px Fx Base Fx Ex Bx Month Px Month Fx PWR 3990 $105,000,000 112.5 2.06 0.65 2.32 1.676 191.4 114.2 3.049 250.0 82.0 0.13 2.253 0.22 12.28 NRC Minimum: $472,584,981 Site Specific: $640,406,000 Licensee:  % Owned: Category Amount of NRC Minimum/Site Specific: Amount in Trust Fund:

Arizona Public Service Company (APS) 29.10% 1 $186,358,146 $140,976,000 Salt River Project Agricultural Improvement and Power District 17.49% 1 $112,007,009 $80,105,000 (SRP)

El Paso Electric Company (EPE) 15.80% 1 $101,184,148 $48,601,000 Southern California Edison Company (SCE) 15.80% 1 $101,184,148 $263,898,000 Public Service Company of New Mexico (PNM) 10.20% 1 $65,321,412 $46,123,000 Southern California Public Power Authority (SCPPA) 5.91% 1 $37,847,995 $57,397,000 Los Angeles Department of Water and Power (LADWP) 5.70% 1 $36,503,142 $39,875,000 Total Fund Balance: $676,975,000 Step 1:

Earnings Credit:

Real Rate of Return Years Left Trust Fund Balance: per year in License Total Earnings: Does Licensee Pass:

$676,975,000 2% 16.90 $946,057,422 YES Step 2:

Accumulation:

Real Rate of Return Value of Annuity per year (amount/See Annuity Sheet) per year Number of Annual Payments: Total Annuity:

see annuity sheet See Annuity Sheet See Total Step 2 Real Rate of Return Total Annuity per year Years remaining after annuity Total Step 2:

See Total Step 2 See Annuity Sheet N/A $331,026,880 Total Step 1 + Step 2 Does Licensee Pass:

$1,277,084,302 YES Step 3:

Decom Period:

Real Rate of Return Decom Total Earnings: per year Period: Total Earnings for Decom:

$1,277,084,302 2% 7 $94,942,066 Total of Steps 1 thru 3: Does Licensee Pass: Shortfall:

$1,372,026,369 YES NO Signature: Michael Purdie and JoAnn Simpson Date: 8/10/2011 Signature: Aaron L. Szabo Spreadsheet created by: Aaron Szabo, Shawn Harwell Date: 8/22/2011 Formulas verified by: Clayton Pittiglio

Datasheet 2 Plant name: Palo Verde Nuclear Generating Station, Unit 3 Docket Number: 50-530 Month: Day Year:

Date of Operation: 12 31 2010 Termination of Operations: 11 25 2027 If licensee is granted greater than 2% RRR Step 4:

Earnings Credit:

Real Rate of Years Left in Licensee: Trust Fund Balance: Return per year License Total Earnings: Does Licensee Pass:

All other Licensees: $582,251,000 2.00% 16.90 $813,682,751 YES El Paso Electric Company $48,601,000 2.0375% 16.90 $68,342,047 Public Service Company of New Mexico $46,123,000 4.50% 16.90 $97,048,141 Total: $979,072,939 Step 5:

Accumulation:

Real Rate of Return Value of Annuity per year per year Number of Annual Payments: Total Annuity:

see annuity sheet See Annuity Sheet 0 See Total Step 4 Real Rate of Return Total Annuity per year Years remaining after annuity Total Step 5 See Total Step 4 See Annuity Sheet N/A $353,288,810 Total Step 4 + Step 5 Does Licensee Pass:

$1,332,361,749 YES Step 6:

Decom Period:

Real Rate of Return Decom Total Earnings: per year Period: Total Earnings for Decom:

$1,332,361,749 2.00% 7 $99,051,548 Total of Steps 4 thru 6: Does Licensee Pass: Shortfall:

$1,431,413,298 YES NO Signature: Michael Purdie and JoAnn Simpson Date: 8/10/2011 Signature: Aaron L. Szabo Spreadsheet created by: Aaron Szabo, Shawn Harwell Date: 8/22/2011 Formulas verified by: Clayton Pittiglio

Datasheet 2 ANNUITY Termination of Operations: 11 25 2027 APS SRP EPE SCE PNM SCPPA LADWP Real Rate of Real Rate of Real Rate of Real Rate of Real Rate of Real Rate of Real Rate of Total Accumulation Total Accumulation Total Accumulation Total Accumulation Total Accumulation Total Accumulation Total Accumulation Year Annuity: Return: Year Annuity: Return: Year Annuity: Return: Year Annuity: Return: Year Annuity: Return: Year Annuity: Return: Year Annuity: Return:

2011 $3,719,574 2% $5,198,186 2011 $2,283,000 2% $3,190,542 2011 $2,907,844 2% $4,063,776 2011 $0 2% $0 2011 $4,910,000 2% $6,861,832 2011 ($1,176,842) 2% ($1,644,662) 2011 ($76,366) 2% ($106,723) 2012 $3,719,574 2% $5,096,261 2012 $2,418,000 2% $3,312,949 2012 $3,183,853 2% $4,362,259 2012 $0 2% $0 2012 $4,910,000 2% $6,727,287 2012 ($1,176,842) 2% ($1,612,414) 2012 ($76,366) 2% ($104,631) 2013 $3,719,574 2% $4,996,334 2013 $2,561,000 2% $3,440,074 2013 $3,309,953 2% $4,446,109 2013 $0 2% $0 2013 $4,910,000 2% $6,595,379 2013 ($1,176,842) 2% ($1,580,798) 2013 ($76,366) 2% ($102,579) 2014 $3,719,574 2% $4,898,367 2014 $2,713,000 2% $3,572,793 2014 $3,441,047 2% $4,531,570 2014 $0 2% $0 2014 $4,910,000 2% $6,466,058 2014 ($1,176,842) 2% ($1,549,802) 2014 ($76,366) 2% ($100,568) 2015 $3,719,574 2% $4,802,320 2015 $2,873,000 2% $3,709,314 2015 $3,814,940 2% $4,925,447 2015 $0 2% $0 2015 $4,910,000 2% $6,339,272 2015 ($1,176,842) 2% ($1,519,414) 2015 ($76,366) 2% ($98,596) 2016 $3,719,574 2% $4,708,157 2016 $3,044,000 2% $3,853,030 2016 $3,966,035 2% $5,020,122 2016 $0 2% $0 2016 $4,910,000 2% $6,214,973 2016 ($1,176,842) 2% ($1,489,621) 2016 ($76,366) 2% ($96,662) 2017 $3,719,574 2% $4,615,840 2017 $3,224,000 2% $4,000,853 2017 $4,123,113 2% $5,116,616 2017 $0 2% $0 2017 $4,910,000 2% $6,093,111 2017 ($1,176,842) 2% ($1,460,413) 2017 ($76,366) 2% ($94,767) 2018 $3,719,574 2% $4,525,334 2018 $3,415,000 2% $4,154,781 2018 $4,659,502 2% $5,668,875 2018 $0 2% $0 2018 $4,910,000 2% $5,973,638 2018 ($1,176,842) 2% ($1,431,778) 2018 ($76,366) 2% ($92,909) 2019 $3,719,574 2% $4,436,602 2019 $3,617,000 2% $4,314,254 2019 $4,844,046 2% $5,777,840 2019 $0 2% $0 2019 $4,910,000 2% $5,856,508 2019 ($1,176,842) 2% ($1,403,704) 2019 ($76,366) 2% ($91,087) 2020 $3,719,574 2% $4,349,609 2020 $3,831,000 2% $4,479,909 2020 $5,035,900 2% $5,888,900 2020 $0 2% $0 2020 $4,910,000 2% $5,741,674 2020 ($1,176,842) 2% ($1,376,180) 2020 ($76,366) 2% ($89,301) 2021 $3,719,574 2% $4,264,323 2021 $4,058,000 2% $4,652,313 2021 $5,889,479 2% $6,752,021 2021 $0 2% $0 2021 $4,910,000 2% $5,629,093 2021 ($1,176,842) 2% ($1,349,196) 2021 ($76,366) 2% ($87,550) 2022 $3,719,574 2% $4,180,709 2022 $4,298,000 2% $4,830,845 2022 $6,122,738 2% $6,881,806 2022 $0 2% $0 2022 $4,910,000 2% $5,518,718 2022 ($1,176,842) 2% ($1,322,741) 2022 ($76,366) 2% ($85,833) 2023 $3,719,574 2% $4,098,734 2023 $4,552,000 2% $5,016,015 2023 $6,365,235 2% $7,014,084 2023 $0 2% $0 2023 $4,910,000 2% $5,410,508 2023 $0 2% $0 2023 $0 2% $0 2024 $3,719,574 2% $4,018,367 2024 $4,822,000 2% $5,209,351 2024 $8,106,273 2% $8,757,449 2024 $0 2% $0 2024 $4,910,000 2% $5,304,420 2024 $0 2% $0 2024 $0 2% $0 2025 $3,719,574 2% $3,939,575 2025 $5,107,000 2% $5,409,063 2025 $8,427,330 2% $8,925,781 2025 $0 2% $0 2025 $4,910,000 2% $5,200,411 2025 $0 2% $0 2025 $0 2% $0 2026 $3,719,574 2% $3,862,329 2026 $5,410,000 2% $5,617,632 2026 $8,761,103 2% $9,097,348 2026 $0 2% $0 2026 $4,910,000 2% $5,098,443 2026 $0 2% $0 2026 $0 2% $0 2027 $3,719,574 2% $3,786,597 2027 $5,730,000 2% $5,833,249 2027 $2,243,965 2% $2,284,399 2027 $0 2% $0 2027 $4,910,000 2% $4,998,473 2027 $0 2% $0 2027 $0 2% $0 Total: $75,777,644 Total: $74,596,968 Total: $99,514,401 Total: $0 Total: $100,029,797 Total: ($17,740,724) Total: ($1,151,206)

Total: $331,026,880 If licensee is granted greater than 2% RRR If licensee is granted greater than 2% RRR If licensee is granted greater than 2% RRR If licensee is granted greater than 2% RRR APS SRP EPE SCE PNM SCPPA LADWP Real Rate of Real Rate of Real Rate of Real Rate of Real Rate of Real Rate of Real Rate of Total Accumulation: Total Accumulation: Total Accumulation: Total Accumulation: Total Accumulation: Total Accumulation: Total Accumulation:

Year Annuity: Return: Year Annuity: Return: Year Annuity: Return: Year Annuity: Return: Year Annuity: Return: Year Annuity: Return: Year Annuity: Return:

2011 $3,719,574 2% $5,198,186 2011 $2,283,000 2% $3,190,542 2011 $2,907,844 2.0375% $4,089,101 2011 $0 2% $0 2011 $4,910,000 4.5% $10,331,936 2011 ($1,176,842) 2% ($1,644,662) 2011 ($76,366) 2% ($106,723) 2012 $3,719,574 2% $5,096,261 2012 $2,418,000 2% $3,312,949 2012 $3,183,853 2.0375% $4,387,832 2012 $0 2% $0 2012 $4,910,000 4.5% $9,887,020 2012 ($1,176,842) 2% ($1,612,414) 2012 ($76,366) 2% ($104,631) 2013 $3,719,574 2% $4,996,334 2013 $2,561,000 2% $3,440,074 2013 $3,309,953 2.0375% $4,470,530 2013 $0 2% $0 2013 $4,910,000 4.5% $9,461,263 2013 ($1,176,842) 2% ($1,580,798) 2013 ($76,366) 2% ($102,579) 2014 $3,719,574 2% $4,898,367 2014 $2,713,000 2% $3,572,793 2014 $3,441,047 2.0375% $4,554,786 2014 $0 2% $0 2014 $4,910,000 4.5% $9,053,841 2014 ($1,176,842) 2% ($1,549,802) 2014 ($76,366) 2% ($100,568) 2015 $3,719,574 2% $4,802,320 2015 $2,873,000 2% $3,709,314 2015 $3,814,940 2.0375% $4,948,861 2015 $0 2% $0 2015 $4,910,000 4.5% $8,663,962 2015 ($1,176,842) 2% ($1,519,414) 2015 ($76,366) 2% ($98,596) 2016 $3,719,574 2% $4,708,157 2016 $3,044,000 2% $3,853,030 2016 $3,966,035 2.0375% $5,042,133 2016 $0 2% $0 2016 $4,910,000 4.5% $8,290,873 2016 ($1,176,842) 2% ($1,489,621) 2016 ($76,366) 2% ($96,662) 2017 $3,719,574 2% $4,615,840 2017 $3,224,000 2% $4,000,853 2017 $4,123,113 2.0375% $5,137,161 2017 $0 2% $0 2017 $4,910,000 4.5% $7,933,850 2017 ($1,176,842) 2% ($1,460,413) 2017 ($76,366) 2% ($94,767) 2018 $3,719,574 2% $4,525,334 2018 $3,415,000 2% $4,154,781 2018 $4,659,502 2.0375% $5,689,546 2018 $0 2% $0 2018 $4,910,000 4.5% $7,592,201 2018 ($1,176,842) 2% ($1,431,778) 2018 ($76,366) 2% ($92,909) 2019 $3,719,574 2% $4,436,602 2019 $3,617,000 2% $4,314,254 2019 $4,844,046 2.0375% $5,796,777 2019 $0 2% $0 2019 $4,910,000 4.5% $7,265,264 2019 ($1,176,842) 2% ($1,403,704) 2019 ($76,366) 2% ($91,087) 2020 $3,719,574 2% $4,349,609 2020 $3,831,000 2% $4,479,909 2020 $5,035,900 2.0375% $5,906,029 2020 $0 2% $0 2020 $4,910,000 4.5% $6,952,406 2020 ($1,176,842) 2% ($1,376,180) 2020 ($76,366) 2% ($89,301) 2021 $3,719,574 2% $4,264,323 2021 $4,058,000 2% $4,652,313 2021 $5,889,479 2.0375% $6,769,172 2021 $0 2% $0 2021 $4,910,000 4.5% $6,653,020 2021 ($1,176,842) 2% ($1,349,196) 2021 ($76,366) 2% ($87,550) 2022 $3,719,574 2% $4,180,709 2022 $4,298,000 2% $4,830,845 2022 $6,122,738 2.0375% $6,896,751 2022 $0 2% $0 2022 $4,910,000 4.5% $6,366,526 2022 ($588,421) 2% ($661,371) 2022 ($38,183) 2% ($42,917) 2023 $3,719,574 2% $4,098,734 2023 $4,552,000 2% $5,016,015 2023 $6,365,235 2.0375% $7,026,734 2023 $0 2% $0 2023 $4,910,000 4.5% $6,092,369 2024 $3,719,574 2% $4,018,367 2024 $4,822,000 2% $5,209,351 2024 $8,106,273 2.0375% $8,770,018 2024 $0 2% $0 2024 $4,910,000 4.5% $5,830,019 2025 $3,719,574 2% $3,939,575 2025 $5,107,000 2% $5,409,063 2025 $8,427,330 2.0375% $8,935,306 2025 $0 2% $0 2025 $4,910,000 4.5% $5,578,965 2026 $3,719,574 2% $3,862,329 2026 $5,410,000 2% $5,617,632 2026 $8,761,103 2.0375% $9,103,710 2026 $0 2% $0 2026 $4,910,000 4.5% $5,338,723 2027 $3,719,574 2% $3,786,597 2027 $5,730,000 2% $5,833,249 2027 $2,243,965 2.0375% $2,285,156 2027 $0 2% $0 Total: $75,777,644 Total: $74,596,968 Total: $99,809,603 Total: $0 Total: $121,292,238 Total: ($17,079,353) Total: ($1,108,290)

Total: $353,288,810 Signature: Michael Purdie and JoAnn Simpson Date: 8/10/2011 Signature: Aaron L. Szabo Spreadsheet created by: Aaron Szabo, Shawn Harwell Date: 8/22/2011 Formulas verified by: Clayton Pittiglio