ML112371774

2010 DFS Report Analysis for Palo Verde Nuclear Generating Station, Unit 1

ML112371774
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: ML112371774 (4)

Text

Datasheet 1 Plant name: Palo Verde Nuclear Generating Station, Unit 1 Docket Number: 50-528 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 $136,871,000 Salt River Project Agricultural 17.49% 1 $77,407,000 Improvement and Power District (SRP)

El Paso Electric Company (EPE) 15.80% 1 $52,645,000 Southern California Edison Company 15.80% 1 $250,567,000 (SCE)

Public Service Company of New Mexico 10.20% 1 $50,022,000 (PNM)

Southern California Public Power 5.91% 1 $51,678,000 Authority (SCPPA)

Los Angeles Department of Water and 5.70% 1 $40,435,000 Power (LADWP)

Total Trust Fund Balance $659,625,000 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 Spreadsheet created by: Aaron Szabo, Shawn Harwell Date: 8/10/2011 Formulas verified by: Clayton Pittiglio

Datasheet 2 Plant name: Palo Verde Nuclear Generating Station, Unit 1 Docket Number: 50-528 Month: Day Year:

Date of Operation: 12 31 2010 Termination of Operations: 6 1 2025 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: $529,232,000 Amount of NRC Minimum/Site Licensee:  % Owned: Category Specific: Amount in Trust Fund:

Arizona Public Service Company (APS) 29.10% 1 $154,006,512 $136,871,000 Salt River Project Agricultural Improvement and Power 17.49% 1 $92,562,677 $77,407,000 District (SRP)

El Paso Electric Company (EPE) 15.80% 1 $83,618,656 $52,645,000 Southern California Edison Company (SCE) 15.80% 1 $83,618,656 $250,567,000 Public Service Company of New Mexico (PNM) 10.20% 1 $53,981,664 $50,022,000 Southern California Public Power Authority (SCPPA) 5.91% 1 $31,277,611 $51,678,000 Los Angeles Department of Water and Power (LADWP) 5.70% 1 $0 $40,435,000 Total Fund Balance: $659,625,000 Step 1:

Earnings Credit:

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

$659,625,000 2% 14.42 $877,592,159 YES Step 2:

Accumulation:

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

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

See Total Step 2 See Annuity Sheet N/A $139,861,857 Total Step 1 + Step 2 Does Licensee Pass:

$1,017,454,016 YES Step 3:

Decom Period:

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

$1,017,454,016 2% 7 $75,640,415 Total of Steps 1 thru 3: Does Licensee Pass: Shortfall:

$1,093,094,431 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 1 Docket Number: 50-528 Month: Day Year:

Date of Operation: 12 31 2010 Termination of Operations: 6 1 2025 If licensee is granted greater than 2% RRR Step 4:

Earnings Credit:

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

APS $136,871,000 2.00% 14.42 $905,770,440 YES SRP $77,407,000 2.00%

EPE $52,645,000 2.0375%

SCE $250,567,000 2.00%

PNM $50,022,000 4.50%

SCPPA $51,678,000 2.00%

LADWP $40,435,000 2.00%

Step 5:

Accumulation:

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

See Annuity Sheet See Annuity Sheet 0 See Total Step 4 Real Rate of Return Years remaining after Total Annuity per year annuity Total Step 5 See Total Step 4 See Annuity Sheet N/A $145,070,067 Total Step 4 + Step 5 Does Licensee Pass:

$1,050,840,508 YES Step 6:

Decom Period:

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

$1,050,840,508 2.00% 7 $78,122,461 Total of Steps 4 thru 6: Does Licensee Pass: Shortfall:

$1,128,962,969 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: 6 1 2025 APS SRP EPE SCE PNM SCPPA LADWP Real Rate of Real Rate of Real Rate of Real Rate of Total Real Rate of Real Rate of Real Rate of Total Accumulation Total Accumulation: Total Accumulation: Total Accumulation: Total Accumulation: Total Accumulation:

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

2011 $2,044,352 2% $2,719,976 2011 $1,608,000 2% $2,139,417 2011 $2,980,838 2% $3,965,955 2011 $0 2% $0 2011 $1,361,000 2% $1,810,788 2011 ($1,570,384) 2% ($2,089,369) 2011 ($917,826) 2% ($1,221,152) 2012 $2,044,352 2% $2,666,643 2012 $1,704,000 2% $2,222,689 2012 $3,317,760 2% $4,328,844 2012 $0 2% $0 2012 $1,361,000 2% $1,775,282 2012 ($1,570,384) 2% ($2,048,401) 2012 ($917,826) 2% ($1,197,208) 2013 $2,044,352 2% $2,614,356 2013 $1,804,000 2% $2,306,989 2013 $3,449,163 2% $4,412,051 2013 $0 2% $0 2013 $1,361,000 2% $1,740,472 2013 ($1,570,384) 2% ($2,008,237) 2013 ($917,826) 2% ($1,173,733) 2014 $2,044,352 2% $2,563,094 2014 $1,911,000 2% $2,395,905 2014 $3,585,771 2% $4,496,858 2014 $0 2% $0 2014 $1,361,000 2% $1,706,346 2014 ($1,570,384) 2% ($1,968,859) 2014 ($917,826) 2% ($1,150,719) 2015 $2,044,352 2% $2,512,837 2015 $2,024,000 2% $2,487,821 2015 $4,065,222 2% $4,998,167 2015 $0 2% $0 2015 $1,361,000 2% $1,672,888 2015 ($1,570,384) 2% ($1,930,254) 2015 ($917,826) 2% ($1,128,156) 2016 $2,044,352 2% $2,463,566 2016 $2,144,000 2% $2,583,648 2016 $4,226,229 2% $5,094,239 2016 $0 2% $0 2016 $1,361,000 2% $1,640,086 2016 ($1,570,384) 2% ($1,892,406) 2016 ($917,826) 2% ($1,106,035) 2017 $2,044,352 2% $2,415,261 2017 $2,271,000 2% $2,683,030 2017 $4,393,613 2% $5,192,159 2017 $0 2% $0 2017 $1,361,000 2% $1,607,928 2017 ($1,570,384) 2% ($1,855,300) 2017 ($917,826) 2% ($1,084,348) 2018 $2,044,352 2% $2,367,903 2018 $2,406,000 2% $2,786,787 2018 $5,138,776 2% $5,953,682 2018 $0 2% $0 2018 $1,361,000 2% $1,576,400 2018 ($1,570,384) 2% ($1,818,922) 2018 ($917,826) 2% ($1,063,086) 2019 $2,044,352 2% $2,321,473 2019 $2,548,000 2% $2,893,393 2019 $5,342,302 2% $6,068,121 2019 $0 2% $0 2019 $1,361,000 2% $1,545,490 2019 ($1,570,384) 2% ($1,783,257) 2019 ($917,826) 2% ($1,042,241) 2020 $2,044,352 2% $2,275,954 2020 $2,699,000 2% $3,004,766 2020 $5,553,889 2% $6,184,760 2020 $0 2% $0 2020 $1,361,000 2% $1,515,186 2020 ($1,570,384) 2% ($1,748,291) 2020 ($917,826) 2% ($1,021,805) 2021 $2,044,352 2% $2,231,328 2021 $2,859,000 2% $3,120,483 2021 $6,957,220 2% $7,595,585 2021 $0 2% $0 2021 $1,361,000 2% $1,485,476 2021 ($1,570,384) 2% ($1,714,011) 2021 2% $0 2022 $2,044,352 2% $2,187,576 2022 $3,028,000 2% $3,240,137 2022 $7,232,768 2% $7,741,584 2022 $0 2% $0 2022 $1,361,000 2% $1,456,349 2022 ($1,570,384) 2% ($1,680,403) 2022 2% $0 2023 $2,044,352 2% $2,144,682 2023 $3,207,000 2% $3,364,390 2023 $7,519,229 2% $7,890,389 2023 $0 2% $0 2023 $1,361,000 2% $1,427,794 2023 ($1,570,384) 2% ($1,647,454) 2023 2% $0 2024 $2,044,352 2% $2,102,630 2024 $3,397,000 2% $3,493,837 2024 $7,817,036 2% $8,042,055 2024 $0 2% $0 2024 $1,361,000 2% $1,399,798 2024 ($1,570,384) 2% ($1,615,151) 2024 2% $0 2025 $2,044,352 2% $2,061,402 2025 $0 2% $0 Total: $33,587,278 Total: $38,723,292 Total: $81,964,450 Total: $0 Total: $20,960,484 Total: ($24,185,164) Total: ($11,188,484)

TOTAL: $139,861,857 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 Total Real Rate of Real Rate of Real Rate of Total Accumulation: Total Accumulation: Total Accumulation: Total Accumulation: Total Accumulation: Total Accumulation:

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

2011 $2,044,352 2% $2,719,976 2011 $1,608,000 2% $2,139,417 2011 $2,980,838 2.0375% $3,987,031 2011 $0 2% $0 2011 $1,361,000 4.5% $2,567,460 2011 ($1,570,384) 2% ($2,089,369) 2011 ($917,826) 2% ($1,221,152) 2012 $2,044,352 2% $2,666,643 2012 $1,704,000 2% $2,222,689 2012 $3,317,760 2.0375% $4,349,070 2012 $0 2% $0 2012 $1,361,000 4.5% $2,456,900 2012 ($1,570,384) 2% ($2,048,401) 2012 ($917,826) 2% ($1,197,208) 2013 $2,044,352 2% $2,614,356 2013 $1,804,000 2% $2,306,989 2013 $3,449,163 2.0375% $4,431,037 2013 $0 2% $0 2013 $1,361,000 4.5% $2,351,100 2013 ($1,570,384) 2% ($2,008,237) 2013 ($917,826) 2% ($1,173,733) 2014 $2,044,352 2% $2,563,094 2014 $1,911,000 2% $2,395,905 2014 $3,585,771 2.0375% $4,514,549 2014 $0 2% $0 2014 $1,361,000 4.5% $2,249,856 2014 ($1,570,384) 2% ($1,968,859) 2014 ($917,826) 2% ($1,150,719) 2015 $2,044,352 2% $2,512,837 2015 $2,024,000 2% $2,487,821 2015 $4,065,222 2.0375% $5,015,986 2015 $0 2% $0 2015 $1,361,000 4.5% $2,152,973 2015 ($1,570,384) 2% ($1,930,254) 2015 ($917,826) 2% ($1,128,156) 2016 $2,044,352 2% $2,463,566 2016 $2,144,000 2% $2,583,648 2016 $4,226,229 2.0375% $5,110,522 2016 $0 2% $0 2016 $1,361,000 4.5% $2,060,261 2016 ($1,570,384) 2% ($1,892,406) 2016 ($917,826) 2% ($1,106,035) 2017 $2,044,352 2% $2,415,261 2017 $2,271,000 2% $2,683,030 2017 $4,393,613 2.0375% $5,206,840 2017 $0 2% $0 2017 $1,361,000 4.5% $1,971,542 2017 ($1,570,384) 2% ($1,855,300) 2017 ($917,826) 2% ($1,084,348) 2018 $2,044,352 2% $2,367,903 2018 $2,406,000 2% $2,786,787 2018 $5,138,776 2.0375% $5,968,322 2018 $0 2% $0 2018 $1,361,000 4.5% $1,886,643 2018 ($1,570,384) 2% ($1,818,922) 2018 ($917,826) 2% ($1,063,086) 2019 $2,044,352 2% $2,321,473 2019 $2,548,000 2% $2,893,393 2019 $5,342,302 2.0375% $6,080,807 2019 $0 2% $0 2019 $1,361,000 4.5% $1,805,400 2019 ($1,570,384) 2% ($1,783,257) 2019 ($917,826) 2% ($1,042,241) 2020 $2,044,352 2% $2,275,954 2020 $2,699,000 2% $3,004,766 2020 $5,553,889 2.0375% $6,195,412 2020 $0 2% $0 2020 $1,361,000 4.5% $1,727,655 2020 ($1,570,384) 2% ($1,748,291) 2020 ($917,826) 2% ($1,021,805) 2021 $2,044,352 2% $2,231,328 2021 $2,859,000 2% $3,120,483 2021 $6,957,220 2.0375% $7,605,870 2021 $0 2% $0 2021 $1,361,000 4.5% $1,653,259 2021 ($1,570,384) 2% ($1,713,918) 2022 $2,044,352 2% $2,187,576 2022 $3,028,000 2% $3,240,137 2022 $7,232,768 2.0375% $7,749,218 2022 $0 2% $0 2022 $1,361,000 4.5% $1,582,066 2022 ($1,570,384) 2% ($1,680,403) 2023 $2,044,352 2% $2,144,682 2023 $3,207,000 2% $3,364,390 2023 $7,519,229 2.0375% $7,895,268 2023 $0 2% $0 2023 $1,361,000 4.5% $1,513,938 2023 ($1,570,384) 2% ($1,647,454) 2024 $2,044,352 2% $2,102,630 2024 $3,397,000 2% $3,493,837 2024 $7,817,036 2.0375% $8,044,070 2024 $0 2% $0 2024 $1,361,000 4.5% $1,448,745 2024 ($1,570,384) 2% ($1,615,151) 2025 $2,044,352 2% $2,061,402 2025 $0 2% $0 Total: $33,587,278 Total: $38,723,292 Total: $82,154,000 Total: $0 Total: $25,979,051 Total: ($24,185,071) Total: ($11,188,484)

TOTAL: $145,070,067 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