Patent ID: 7050985

Claim:
A method for providing financial assurance for decommissioning a nuclear power facility via an insurance policy, the method comprising the steps of: supplying, by an insurer, the insurance policy to a trust, said insurance policy includes a predetermined monetary premium payable to said insurer; receiving said premium by said insurer from said trust; and paying by said insurer, in accordance with terms of said insurance policy, actual decommission expenses to said trust between a policy inception date and a policy termination date, to provide financial assurance for decommissioning said facility wherein said premium is calculated by: (a) determining a plurality of scenarios, wherein each scenario is based on said decommissioning starting on a different time schedule, and wherein each scenario has a monetary sum; (b) determining a net present value (NPV) of expected decommissioning expenses for each said scenario; (c) determining a risk transfer element for each said scenario, said risk transfer element being an NPV of unexpected expenses multiplied by a probability of actual occurrence; (d) determining insurer expenses for each said scenario, said insurer expenses being an NPV of expected expenses incurred by an insurer of said facility; (e) adding the monetary value of steps (b), (c), and (d), for each scenario, to calculate said monetary sum of each said scenario; and (f) adjusting said monetary sum of each said scenario, so that each said monetary sum is substantially equal, wherein said premium of said insurance policy is based on the adjusted sum.