ML14092A365

San Onofre Nuclear Generating Station, Units 2 and 3, 10 CFR 50.75(f)(1) Decommissioning Funding Status Report

ML14092A365
Person / Time
Site:	San Onofre
Issue date:	03/31/2014
From:	Brabec R C Southern California Edison Co
To:	Document Control Desk, Office of Nuclear Reactor Regulation
References
Download: ML14092A365 (5)

Text

I SOUTHERN CALIFORNIA EDISON" An EDISON INTERNATIONAL'.

Company Richard C. Brabec Principal Manger, Nuclear Regulatory' Affairs and Emergency Planning 10 CFR 50.75(0(1)

March 31, 2014 ATTN: Document Control Desk U. S. Nuclear Regulatory Commission Washington, D. C. 20555-0001

Subject:

Docket Nos. 50-361 and 50-362, 10 CFR 50.75(f)(1)

Decommissioning Funding Status Report San Onofre Nuclear Generating Station Units 2 and 3

Dear Sir or Madam:

As required by 10 CFR 50.75(0(1), this letter provides the status of the decommissioning expenditures and funding for San Onofre Nuclear Generating Station (SONGS) Units 2 and 3 as of December 31, 2013. The required information is provided in the enclosure for Southern California Edison, San Diego Gas & Electric and the Cities of Anaheim and Riverside.

This information is reported on an annual basis for SONGS Units 2 and 3 because the units were permanently shut down on June 7, 2013.There are no commitments contained in this letter or its enclosure.

If you have any questions regarding this matter, please contact Mr. Mark E. Morgan, Licensing Lead, at 949-368-6745.

Si

Enclosure:

San Onofre Nuclear Generating Station Units 2 and 3 Decommissioning Funding Status Report 2013 cc: M. Dapas, Regional Administrator, NRC Region IV M. Chernoff, NRC Project Manager, San Onofre Unit s 2 and 3 G. G. Warnick, NRC Senior Resident Inspector, San Onofre Units 2 & 3 AOO(P. O. Box 128 San Clemente, CA 92672 Enclosure San Onofre Nuclear Generating Station Units 2 and 3 Decommissioning Funding Status Report 2013 San Onofre Nuclear Generating Station Units 2 and 3 Decommissioning Funding Status Report 2013 San Onofre Units 2 and 3 were pressurized water reactors (PWR) rated at 3410 MWt.Provided below is the information required by 10 CFR 50.75(f)(1) for San Onofre Units 2 and 3. These units closed on June 7, 2013, therefore, this information is reported annually for San Onofre Units 2 and 3 as required for shutdown plants.All dollar amounts are in 2013 dollars.The decommissioning liability of the San Onofre Units 2 and 3 participants is set forth below for each unit: Participant Unit 2 Decommissioning Unit 3 Decommissioning Liability Liability SCE 75.7363% 75.7475%SDG&E 20.0000% 20.0000%Anaheim 2.4737% 2.4625%Riverside 1.7900% 1.7900%1) The decommissioning fund estimated to be required pursuant to 10 CFR 50.75(b) and (c) is the following:

a) The minimum amount calculated by the method prescribed by 10 CFR 50.75(c).San Onofre Unit 2 San Onofre Unit 3$ 524.4 million$ 524.4 million b) The San Onofre Units 2 and 3 site-specific estimate(1) for decommissioning includes the below components.

The first line represents costs associated with terminating the site license: San Onofre Unit 2 San Onofre Unit 3 License Termination Site Restoration Fuel Storage TOTAL$ 899.9 million$ 462.6 million$ 727.0 million$ 2,089.5 million$ 878.3 million$ 642.4 million$ 767.2 million$ 2,287.9 million

2) The amounts accumulated at the end of calendar year 2013 (net of estimated taxes) are: Particinant San Onofre Unit 2 San Onofre Unit 3 SCE SDG&E (2)Anaheim (2)Riverside (2)TOTAL$ 1,369.5 million$ 379.2 million$ 61.1 million$ 37.2 million$ 1,847.0 million$ 1,536.8 million$ 436.0 million$ 66.5 million$ 40.1 million$ 2,079.4 million 3) The amounts accumulated for each category of decommissioning costs at the end of calendar year 2013 are: Estimated Cost"To Go" Ratios in 12/31/2013 Decommissioning Cost Trust Balance Costs Estimate License Termination Costs $ 899.9 million 43% $ 794.2 million Site Restoration Costs $ 462.6 million 22% $ 406.3 million Spent Fuel Storage Costs $ 727.0 million 35% $ 646.5 million TOTAL $ 2,089.5 million 100% $ 1,847.0 million Estimated Cost"To Go" Ratios in 12/31/2013 Decommissioning Cost Trust Balance Costs Estimate License Termination Costs $ 878.3 million 38% $ 790.2 million Site Restoration Costs $ 642.4 million 28% $ 582.2 million Spent Fuel Storage Costs $ 767.2 million 34% $ 707.0 million TOTAL $ 2,287.9 million 100% $ 2,079.4 million 3) The annual amounts projected to be collected in 2014 are: Particioant San Onofre Unit 2 San Onofre Unit 3 SCE SDG&E (2)Anaheim (2)Riverside (2)TOTAL$ 17.6 million$ 5.8 million$ 0.0 million$ 0.0 million$ 23.4 million$ 5.1 million$ 2.2 million$ 0.0 million$ 0.0 million$ 7.3 million Each participant either (A) recovers, directly or indirectly, the estimated total cost of decommissioning through rates established by "cost of service" or similar rate making regulation, including entities that establish their own rates and are able to recover their cost of service allocable to decommissioning, or (B) has as its source of revenues for its external sinking fund a "non-bypassable charge," the total amount of which, with earnings, provides the funds estimated to be needed for decommissioning.

4) The composite escalation rate for San Onofre Units 2 and 3 Decommissioning is 3.110%.5) The after tax investment rates of return for the Decommissioning Trust Funds forecast by each participant are the following:

Participant Qualified Non-Qualified SCE 4.15% 3.22%SDG&E (2) 4.12% 3.68%Anaheim (2) 1.50% 1.50%Riverside (2) 2.38% 2.38%The after tax composite investment rate of return is 4.045%. The composite investment rate of return less the composite escalation rate yields a composite real earnings rate less than the 2% real rate of return allowed under 10 CFR 50.75(e)(1)(ii).

6) None of the Participants of San Onofre Units 2 and 3 are 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.

Notes: (1) On July 22, 2013, approximately six weeks after the permanent closure of San Onofre Units 2 and 3, SCE submitted this updated site-specific decommissioning cost estimate for San Onofre Units 2 and 3 to the California Public Utilities Commission (CPUC). This estimate is a preliminary update to SCE's previous estimate, which assumed that these units would close upon expiration of their operating licenses in 2022, and which was approved by the CPUC on July 29, 2010. Like the previous estimate, this updated estimate includes the radiological costs associated with terminating the site license, non-radiological costs, and fuel storage costs. SCE plans to submit a new, more detailed, site-specific Decommissioning Cost Estimate to the CPUC and to the NRC in 2014, contemporaneous with the Post Shutdown Decommissioning Activities Report (PSDAR) for San Onofre Units 2 and 3.(2) SCE is submitting information with respect to its current co-owners, SDG&E and Riverside and its former co-owner, Anaheim, on their behalf, and they are responsible for the completeness and accuracy of their respective information.