POLICY ISSUE

(Information) 

October 2, 2013 SECY-13-0105

FOR: The Commissioners 

FROM: Eric J. Leeds, Director 

 Office of Nuclear Reactor Regulation 

SUBJECT: SUMMARY FINDINGS RESULTING FROM THE STAFF REVIEW OF 

 THE 2013 DECOMMISSIONING FUNDING STATUS REPORTS FOR 

 OPERATING POWER REACTOR LICENSEES 

PURPOSE: 

This paper informs the Commission of the U.S. Nuclear Regulatory Commission (NRC) staff’s 

findings from the review of the 2013 decommissioning funding status (DFS) reports for 

operating power reactor licensees. The DFS reports are required under Title 10 of the Code of 

Federal Regulations (10 CFR) 50.75(f)(1). The 2013 DFS reports were due to the NRC by 

March 31, 2013, reflecting information as of December 31, 2012. This paper does not address 

any new commitments or resource implications. 

BACKGROUND: 

In 1988, the NRC established requirements to assure that decommissioning of all licensed 

facilities will be accomplished in a safe and timely manner and that adequate licensee funds will 

be available for this purpose. “Decommission” means to remove a facility or site safely from 

service and reduce residual radioactivity to a level that permits (1) release of the property for 

unrestricted use and termination of the license; or (2) release of the property under restricted 

conditions and termination of the license. For reactor licensees, the costs of spent fuel 

management, site restoration, and other costs not related to termination of the license are not 

included in the financial assurance for decommissioning. 

CONTACT: Shawn W. Harwell, NRR/DIRS 

 301-415-1309 
The Commissioners 2 

The requirements for reactor licensees are stated in 10 CFR § § 50.33(k), 50.75, and 50.82. 

Reactor licensees must certify that they provide not less than a minimum prescribed amount of 

financial assurance for decommissioning. The amount to be provided must be adjusted 

annually to account for cost escalation. 

In 1998, the NRC amended the financial assurance rules to respond to the anticipated rate 

deregulation of the power generating industry. The amendments provided additional methods 

and flexibility for reactor licensees to provide financial assurance. The NRC required licensees 

to periodically submit a DFS report to obtain the information necessary to monitor the status of 

decommissioning funds. The Office of Nuclear Reactor Regulation’s Office Instruction LIC-205, 

Revision 4, “Procedures for NRC’s Independent Analysis of Decommissioning Funding 

Assurance for Operating Power Reactors,” dated December 2010, (Agencywide Documents 

Access and Management System (ADAMS) Accession No. ML103410283) describes the 

analysis performed by the NRC staff to determine if a licensee has provided adequate 

decommissioning funding assurance. 

DISCUSSION: 

The NRC staff has reviewed the information in the 2013 DFS reports for all 104 operating 

nuclear power reactors1

, reflecting power reactor ownership by single or multiple licensees. A 

table summarizing the review performed by the NRC staff is enclosed and is also available at 

ADAMS Accession No. ML13266A084. 

Results of NRC Staff’s Review

The NRC staff’s review resulted in the following findings: 

• The amount accumulated, as of December 31, 2012, for all operating power reactor 

licensees totaled $45.7 billion. The total amount accumulated represents a 13.1 percent 

increase from the total amount accumulated reported in the 2010 DFS reports ($40.4 

billion). 

• As of December 31, 2012, 100 of the 104 operating nuclear power reactor licensees 

were providing decommissioning funding assurance, as stipulated in 10 CFR 50.75, 

“Reporting and Recordkeeping for Decommissioning Planning.” The four power reactor 

licensees that were not providing the full amount of decommissioning funding assurance, 

as of December 31, 2012, were: Beaver Valley Power Station, Unit 1 (BVPS 1); 

Palisades Nuclear Plant (Palisades); Perry Nuclear Power Plant (Perry); and Point 

Beach Nuclear Plant, Unit 2 (Point Beach 2). 

• BVPS 1, Palisades, Perry, and Point Beach 2 provided information to resolve their 

shortfalls in conjunction with their 2012 DFS reports. BVPS 1 and Perry committed to 

increase the amount of their supplemental parent company guarantees (PCGs); the 

 

1

 As of 12/31/2012, all 104 referenced nuclear power reactors were considered to be in an operating 

status and reported as such in the 2013 DFS report submittals. 
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• PCGs were submitted within 90 days after the receipt of the DFS reports. Palisades and 

Point Beach 2 submitted information showing that their decommissioning trust fund 

balances increased sufficiently to meet the requirements as of the date of their DFS 

report submittals. 

Resolution of issue not closed out in SECY-11-0149

• Limerick Generating Station, Unit 1 (Limerick 1), had an unresolved shortfall that was 

identified in SECY-11-0149, “2011 Summary of Decommissioning Funding Status 

Reports For Nuclear Power Reactors”, dated October 26, 2011, (ADAMS Accession No. 

ML112620046). 

• The NRC staff has engaged with the licensee of Limerick 1 and the outstanding shortfall 

has been resolved. The unresolved shortfall was resolved with rate relief, supplemented 

with a PCG. 

Additional information regarding the 2013 DFS Report Review

The NRC staff noted that many licensees had improved the quality of the information provided 

in their 2013 DFS report submittals. In particular, the NRC staff required fewer requests for 

additional information in evaluating the 2013 DFS reports. 

CONCLUSION: 

Based on the information provided by the licensees in the 2013 decommissioning funding status 

reports, licensees either did not have shortfalls as of December 31, 2012, or resolved the 

shortfalls as of the date of this summary. 

COORDINATION: 

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

 

 /RA/ 

 

Eric J. Leeds, Director 

 Office of Nuclear Reactor Regulation 

Enclosure: 

2013 DFS Reports – Summary Table
The Commissioners 3 

PCGs were submitted within 90 days after the receipt of the DFS reports. Palisades and 

Point Beach 2 submitted information showing that their decommissioning trust fund 

balances increased sufficiently to meet the requirements as of the date of their DFS 

report submittals. 

Resolution of issue not closed out in SECY-11-0149

• Limerick Generating Station, Unit 1 (Limerick 1), had an unresolved shortfall that was 

identified in SECY-11-0149, “2011 Summary of Decommissioning Funding Status 

Reports For Nuclear Power Reactors”, dated October 26, 2011, (ADAMS Accession No. 

ML112620046). 

• The NRC staff has engaged with the licensee of Limerick 1 and the outstanding shortfall 

has been resolved. The unresolved shortfall was resolved with rate relief, supplemented 

with a PCG. 

Additional information regarding the 2013 DFS Report Review

The NRC staff noted that many licensees had improved the quality of the information provided 

in their 2013 DFS report submittals. In particular, the NRC staff required fewer requests for 

additional information in evaluating the 2013 DFS reports. 

CONCLUSION: 

Based on the information provided by the licensees in the 2013 decommissioning funding status 

reports, licensees either did not have shortfalls as of December 31, 2012, or resolved the 

shortfalls as of the date of this summary. 

COORDINATION: 

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

 

 /RA/ 

 

Eric J. Leeds, Director 

 Office of Nuclear Reactor Regulation 

Enclosure: 

2013 DFS Reports – Summary Table 

ADAMS Accession No.: ML13266A084; WITS 200800001; *concurred via email 

OFFICE NRR/DIRS/IFIB NRR/DIRS/IFIB NRR/DIRS 

NAME SHarwell AKock HNieh 

DATE 09/23/2013 09/25/2013 09/25/2013 

OFFICE OGC/GCHEA TechEd* NRR 

NAME SUttal /BHarris For/ JDougherty ELeeds 

DATE 09/30/2013 09/24/2013 10/02/2013 

OFFICIAL RECORD COPY