POLICY ISSUE 

INFORMATION 

November 14, 2007 SECY-07-0200

FOR: The Commissioners 

FROM: Luis A. Reyes 

 Executive Director for Operations 

SUBJECT: 2007 SUMMARY OF DECOMMISSIONING FUNDING STATUS 

REPORTS FOR NUCLEAR POWER REACTORS 

PURPOSE: 

To summarize the staff’s findings, based on the review of biennial decommissioning funding 

status reports from nuclear power reactor licensees. The reports reflect decommissioning 

funding status as of December 31, 2006, and were due to the NRC by March 31, 2007. This 

paper does not address any new commitments or resource implications. 

BACKGROUND: 

The Code of Federal Regulations, Title 10 (10 CFR), Section 50.75(f)(1), requires all nuclear 

power reactor licensees to submit decommissioning funding status reports every two years. As 

a framework for assessing these reports, the staff uses guidance from three primary sources: 

NUREG-1577, Rev. 1, “Standard Review Plan on Power Reactor Licensee Financial 

Qualifications and Decommissioning Funding Assurance,” dated February 1999; Regulatory 

Guide (RG) 1.159, Rev. 1, “Assuring the Availability of Funds for Decommissioning Nuclear 

Reactors,” dated October 2003; and Office Instruction LIC-205, Rev. 1, “Procedures for NRC’s 

Independent Analysis of Decommissioning Funding Assurance for Operating Nuclear Power 

Reactors,” dated April 2006. 

CONTACT: Michael A. Dusaniwskyj, NRR/DPR 

 (301) 415-1260 
The Commissioners -2- 

DISCUSSION: 

The staff has evaluated the information in the current biennial decommissioning funding status 

reports for all 104 operating nuclear power reactors. 

Method of Determining Decommissioning Funding Assurance 

To analyze the biennial decommissioning funding reports, the staff divided the licensees into 

two major categories: external sinking fund licensees who accumulate funds over time, and all 

other licensees. External sinking fund licensees are either: (1) electric utilities who are entitled 

to recover decommissioning costs through rates established by a State regulatory authority and, 

if there are wholesale sales, the Federal Energy Regulatory Commission (FERC); (2) selfregulated electric utilities who establish rates on their own to recover decommissioning costs; or 

(3) non-electric utilities who are indirectly regulated in the sense that they receive 

non-bypassable charges authorized by a regulatory authority. 

External Sinking Fund Licensees 

Licensees authorized to exclusively use external sinking funds are subject to a method of 

analysis that is based on the consideration of a number of factors. Generally, the staff analysis 

focuses on whether the schedules of annual amounts remaining to be collected by the licensees 

are adequate and reasonable, and whether the assumptions on rates of earnings are 

reasonable and adequately substantiated. Other considerations may be taken into account, 

such as whether the staff knows of a significant likelihood of premature permanent shutdown, or 

knows of relevant public utility commission actions that may impact future collections. 

All Other Licensees 

Some licensees are not authorized to use an external sinking fund as the exclusive method of 

decommissioning funding assurance. The staff analyzed these licensees’ existing 

decommissioning fund balances and factored in earnings credits allowed by Nuclear Regulatory 

Commission (NRC) regulations. The staff also considered any supplemental decommissioning 

funding assurance mechanisms such as parent company guarantees. To determine whether 

currently estimated minimum decommissioning costs are covered by assured funding, the staff 

compared the total assured funding to the minimum decommissioning cost estimate for the 

particular unit calculated using NRC formulas in 10 CFR 50.75, “Reporting and recordkeeping 

for title decommissioning planning.” 

Results of NRC Staff Evaluations 

The staff’s findings are as follows: 

• As of December 31, 2006, nuclear power reactor licensees collectively had 

approximately $35.8 billion in external decommissioning trust accounts. This figure 

represents about 84 percent of the minimum decommissioning funds that will be needed 

at the time of permanent shutdown, based on 2006 calculations and the generic 

formulas in 10 CFR 50.75(c). 
The Commissioners -3- 

• After accounting for earnings credits and scheduled collections, the staff determined 

that, among licensees authorized to exclusively use external sinking funds, 

decommissioning funding assurance now equals or exceeds the latest available, 

NRC- determined, minimum amount. 

• With respect to the licensees not authorized to exclusively use external sinking funds, 

including licensees that once received but no longer receive non-bypassable charges, 

the staff determined that all are providing adequate decommissioning funding assurance 

through prepaid funds and/or guarantees that are authorized by 10 CFR 50.75(c). 

CONCLUSION: 

The staff identified no concerns with the decommissioning funding assurance levels for the 104 

operating nuclear power reactors. Therefore, no action needs to be taken by the NRC at this 

time. 

COORDINATION: 

The Office of General Counsel has reviewed this paper and has no legal objection. 

 /RA/ 

 Luis A. Reyes 

 Executive Director 

 for Operations 
The Commissioners -3- 

• After accounting for earnings credits and scheduled collections, the staff determined 

that, among licensees authorized to exclusively use external sinking funds, 

decommissioning funding assurance now equals or exceeds the latest available, 

NRC- determined, minimum amount. 

• With respect to the licensees not authorized to exclusively use external sinking funds, 

including licensees that once received but no longer receive non-bypassable charges, 

the staff determined that all are providing adequate decommissioning funding assurance 

through prepaid funds and/or guarantees that are authorized by 10 CFR 50.75(c). 

CONCLUSION: 

The staff identified no concerns with the decommissioning funding assurance levels for the 104 

operating nuclear power reactors. Therefore, no action needs to be taken by the NRC at this 

time. 

COORDINATION: 

The Office of General Counsel has reviewed this paper and has no legal objection. 

 /RA/

 Luis A. Reyes 

 Executive Director 

 for Operations 

ADAMS Accession Number: ML072600040 EDATS: NRR-2007-0006 

OFFICE DPR/PFPB DPR/PFPB Tech Ed BC/DPR/PFPB D/DORL 

NAME MDusaniwskyj SHom CHsu RCarlson CHaney 

DATE 09/19/07 09/25/07 09/18/07 10/03/07 10/22/07 

OFFICE D/DPR OGC D/NRR EDO 

NAME MCase BMizuno (NLO) JDyer LReyes 

DATE 10/10/07 10/22/07 10/31/07 11/14/07 

OFFICIAL RECORD COPY