Document: NRC Regulatory Guide
Document ID: 8ebf2253-f3d2-4bcd-ac80-7cbf6ab8d420
Document Type: regulatory_guide
Title: Assuring the Availability of Funds for Decommissioning Nuclear Reactors + HISTORY –HISTORY 02/2022 – DG-1348 Revision 1, Proposed Revision 3 06/2018 – DG-1348 , Proposed Revision 3 11/2016 – Periodic Review of Revision 2 – Reviewed with no issues identified 01/2011 – DG-1229 , Proposed Revision 2 05/2001 – DG-1106 , Proposed Revision 1 05/1989 – DG-1003 , Proposed Revision 0 (Rev. 1)
Source: NRC Regulatory Guide Division 1
Source URL: https://www.nrc.gov/docs/ML2134/ML21347A081.pdf
Revision Date: 2023-05
Chapter: 
Section ID: RG-1.159
CFR Part: 
CFR Title: 

Content:
up the deficit. However, licensees should avoid undue reliance on contributions weighted in constant dollars toward the end of projected facility operating life. Additionally, the NRC staff considers reliance on an estimated tax deduction for decommissioning expenses, at the time such expenses DG-1348 Revision 1, Page 20 are incurred, to be a form of internal reserve and thus not allowed under 10 CFR 50.75(e). If sufficient rate relief by a state PUC or FERC is ultimately not obtained, the licensee’s stockholders will be expected to cover decommissioning costs through reduced return on equity. Projected rates of earnings on an external sinking fund during plant operation should reasonably approximate the historical real rate of earnings (i.e., after inflation and taxes) obtained by a given type of investment. 2.2.8.2 For decommissioning funds that are prepaid or in external sinking fund accounts, the regulations in 10 CFR 50.75(e)(i) and (ii) allow a credit for projected earnings of up to a 2-percent annual real rate of return (i.e., nominal rate less inflation and taxes) from the time of the future funds’ collection as a factor in calculating the total amount of funds that would be sufficient to pay decommissioning costs. This allowed credit may be greater than 2 percent if a licensee is subject to a rate-setting authority that will provide the total amount of funds necessary for decommissioning and the authority has specifically presumed a higher rate. The period of time for which the credit may be taken is determined by whether the generic formula amount or a site- specific decommissioning cost estimate with a specified safe-storage period is used as the basis for estimating decommissioning costs, as discussed below. 2.2.8.3 For licensees that use the generic formula amount for decommissioning cost estimates during the period of plant operation, this credit may be taken for the remaining years left on the operating license, and an additional pro rata credit