PG&E 2012 Triennial Review of
Nuclear Decommissioning Trust 

 

Background

Every 3 years the CPUC reviews the investor owned utilities proposed costs required for decommissioning California’s nuclear power plants. On December 21, 2012, PG&E filed with the CPUC its Triennial Application Nuclear Decommissioning Trust seeking a total estimated annual revenue requirement of $202.9 million, which is $165.6 million (or 381%) increase over its $44.27 million currently authorized revenue requirement. PG&E’s request is comprised of:  

  • Diablo Canyon Power Plant:  $82.517 million ratepayer contribution to the decommissioning trust fund. 
      
     
  • Humboldt Unit 3:  $120.383 million for the decommissioning trust fund, as well as approximately $30 million for years 2014-2016 for Safe Storage operating and maintenance costs.   

 

CPUC Final Decisions

On February 27, 2014, the CPUC issued a Phase 1 Decision approving a $680 million decommissioning cost estimate to complete decommissioning work at PG&E’s Humboldt Bay. It also approved annual operating costs of approximately $6 million and the reasonableness of $26 million in decommissioning projects.

On December 18, 2014, the CPUC issued a Phase 2 Decision approving decommissioning cost estimates for Diablo Canyon of $2.3 billion.


 

 

ORA Position

The CPUC should approve a PG&E nuclear decommissioning annual revenue requirement of no more than $173.7 million, excluding costs associated with Safe Storage operating and maintenance costs, as reflected in ORA’s reasonable adjustments below. PG&E should use: 

  • The most recent Trust Fund balances to calculate the revenue requirements for both Humboldt Bay 3 Power Plant and Diablo Canyon Power Plant because PG&E’s application included stale information from December 2011.  
      
  • A confidential lower Low-Level Radioactive Waste Burial Escalation Rate to calculate the revenue requirement for its Humboldt Bay Power Plant instead of the 7.33% proposed in its application because the confidential lower rate for LLRW reflects PG&E actual contract terms.  

 

 See ORA’s September 20, 2013 Testimony. 

 

 ORA Comparison Table
ORA’s Recommended Ratepayer Decommissioning Contributions vs.
PG&E’s Proposed Contributions
 
 

 

Trust Funds  

  

ORA
       Recommended       

  

   PG&E Proposed  

  

     Difference in Millions        

  

Diablo Canyon
Units 1& 2
    
 

$65.551 

$82.517 

$16.966 

Humboldy Bay
Unit 3
        
 

$108.100 

$120.383 

$12.283 

Total     

$173.651 

$202.900 

$29.249 

 

 

 

 

Proceeding Status

See the Proceeding docket.