ML18152A862

Annual Report of Guarantee of Payment of Deferred Premium

ML18152A862
Person / Time
Site:	Palo Verde, San Onofre
Issue date:	05/29/2018
From:	Bates A Southern California Edison Co
To:	Document Control Desk, Office of Nuclear Reactor Regulation
References
Download: ML18152A862 (5)

Text

SOUTHERN CALIFORNIA Al Bates EDISON~ Manager, Regulatory Affairs &

Oversight An EDISON INTERNATIONALrg, Company 10 CFR 140.21 May 29, 2018 ATTN: Document Control Desk U. S. Nuclear Regulatory Commission Washington, D.C. 20555-0001

Subject:

• Annual Report of Guarantee of Payment of Deferred Premium San Onofre Nuclear Generating Station Units 2 and 3 Docket Nos. 50-361, 50-362 Palo Verde Nuclear Generating Station Units 1, 2, and 3 Docket Nos. 50-528, 50-529, and 50-530

Dear Sir or Madam:

10 CFR 140.21 requires Southern California Edison (SCE), as a minority owner of a 15.8%

share of Palo Verde Units 1, 2, and 3, provide evidence that it maintains a guarantee of payment of its share of deferred premium in an amount of $18.963 million for each reactor SCE is licensed to own.

In accordance with option *(e) of 10 CFR 140.21 and with 10 CFR 50.71(b), SCE is not required to submit its annual financial report or certified financial statement because SCE has provided its quarterly Form 10-Q report to the Securities and Exchange Commission. SCE is providing the enclosed 2017 Internal Cash Flow Statement which is derived from the consolidated financial statements included in SCE's 2017 Annual Report.

-- - SCE notes that the NRC. has granted an exemption from the specific requirements of 10 CFR

-140.11 (a)(4), for SONGS Units 2-and 3 to withdraw from participation in the secondary layer of

_financial protection pool for these units. Therefore, SCE only remains liable for its $8.988 million share of retrospective premiums for Palo Verde Units 1, 2, and 3 during calendar year

--2018.--:With average quarterly cash flows of approximately $682 million during 2017, SCE

~~- .. -certifies that it would be able.to generate sufficient funds for payment of total retrospective premiums of $8.988 million during calendar year 2018.

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

Should you have any questions or require additional information, please contact me at (949) 368-6945.

Enclosure:

2017 Internal Cash Flow Statement cc: K. Kennedy, Regional Administrator, NRC Region IV M. G. Vaaler, NRC Project Manager, SONGS Units 1, 2 and 3

Enclosure 2017 Internal Cash Flow Statement

SOUTHERN CALIFORNIA EDISON COMPANY 2017 Internal Cash Flow (Dollars in Millions) 2017 Actual Net Income After Taxes $1,136 Dividends Paid ($697)

Retained Earnings $439 Adjustments:

Depreciation & Amortization $2,101 Net Deferred Taxes & ITC $304 Allowance for Funds Used During Construction ($115)

Total Adjustments $2,290 2017 Internal Cash Flow $2,729 Quarterly Internal Cash Flow $682 Percentage Ownership:

Palo Verde Nuclear Generating Station Units 1, 2 & 3 Southern California Edison Company 15.8000%

Maximum Total Contingent Liability:

Palo Verde Nuclear Generating Station Unit 1 Southern California Edison Company $ 2.996 (1>

Other Co-Owners $ 15.967 TOTAL $ 18.963 Palo Verde Nuclear Generating Station Unit 2 Southern California Edison Company $ 2.996 (1>

Other Co-Owner:s $ 15.967 TOTAL $ 18.963 Palo Verde Nuclear Generating Station Unit 3 Southern California Edison Company $ 2.996 (1>

Other Co-Owners $ 15.967 TOTAL $ 18.963 SCE Contingent Liability for Palo Verde Units 1, 2, & 3 $ 8.988

1

<J The value represents 15.8% (SCE's Share) of the Palo Verde Annual Per Incident

-*-_--Contingentlfability. The Maximum Total Contingent Liability was increased to $18.963

• _ (Dollars in Millions) per reactor, as announced in the Federal Register, Volume 78,

- -**

• No.134: Friday July 12, 2013, Pages 41835- 36 and became effective on September 10, 2013.