(1) Purpose. The purpose of this rule is to codify the Commission’s policy of requiring each utility that owns a nuclear generating plant to ensure there are sufficient funds on hand at the time of decommissioning to meet all required expenses by establishing appropriate decommissioning accruals. This rule requires each utility to file a Nuclear Decommissioning Study on a regular basis, the purpose of which is to obtain sufficient information to update cost estimates based on new developments, additional information, technological improvements, and forecasts; to reevaluate alternative methodologies; and to revise the annual accrual needed to recover the costs.
    (2) Definitions. For the purpose of this rule, the following definitions shall apply:
    (a) “”Contingency Costs.”” A specific provision for unforeseeable elements of cost within the defined project scope, which is particularly important where previous experience relating estimates and actual costs has shown that unforeseeable events that will increase costs are likely to occur.
    (b) “”Decommissioning.”” The process of safely managing, dismantling, removing, or converting for reuse the materials and equipment that remain at the nuclear generating unit following its retirement that results in an amendment to the licensing status of a nuclear power plant from operational to possession-only and possibly unrestricted use.
    (3) Nuclear Decommissioning Study. Each utility shall file a site-specific nuclear decommissioning study at least once every five years from the submission date of the previous study unless otherwise required by the Commission. At a minimum, each utility’s nuclear decommissioning study shall include:
    (a) A narrative describing each nuclear unit, including the in-service date, the date of operating license expiration, and the status of any license renewal request.
    (b) A list of all entities owning an interest in each nuclear unit, the percentage of ownership by each entity, and documentation showing the status of each entity in providing its share of the total decommissioning costs.
    (c) A narrative explaining plans for spent nuclear fuel storage and removal at each nuclear unit, including, at a minimum, the date on-site spent fuel pool storage capacity will be lost, the date spent nuclear fuel is expected to be removed from the plant site, and the estimated costs for on-site dry storage to accommodate the decommissioning of the unit.
    (d) The decommissioning study methodology.
    (e) A summary of the major assumptions used in the study.
    (f) The methodology selected to decommission each nuclear unit and support for the selection.
    (g) The method of providing financial assurance. If funding is selected, show the amounts qualified and nonqualified for each year since the prior study, and also the method assumed in the calculation of the proposed annual accrual.
    (h) The total utility and jurisdictional decommissioning cost estimates in current dollars for each unit.
    (i) The total utility and jurisdictional decommissioning cost estimates in future dollars for each unit.
    (j) For each year, the estimated amount of decommissioning expenditures and the sources of funds.
    (k) The projected date each nuclear unit will no longer be included in rate base for ratemaking purposes.
    (l) For each nuclear unit, a comparison of the current approved annual decommissioning accruals with those proposed. Current accruals shall be identified as to the effective date and proposed accruals to the proposed effective date.
    (m) The assumed fund earnings rate, net of tax, used in the calculation of the decommissioning accrual and supporting documentation for the rate proposed by the utility.
    (n) The methodology and escalation rate used in converting the current estimated decommissioning costs to future estimated decommissioning costs and supporting documentation and analyses.
    (o) The annual revenue requirement of the proposed decommissioning cost estimates.
    (p) A reconciliation of the decommissioning fund balance and the decommissioning reserve balance as of the effective date of the revised decommissioning accruals proposed by the utility. The reconciliation shall show the fund balances by category. The fund balance may involve estimates.
    (q) A summary and explanation of material differences between the current study and the utility’s last filed study including, at a minimum, changes in methodology and assumptions.
    (r) Supporting schedules, analyses, and data, including the contingency allowance, used in developing the decommissioning cost estimates and annual accruals proposed by the utility. Supporting schedules shall include the inflation and funding analyses.
    (4) Accumulation of Annual Accruals.
    (a) The decommissioning annual accrual shall be calculated using the current cost estimates escalated to the expected dates of actual decommissioning.
    (b) Decommissioning accruals shall be accumulated monthly based on a Commission approved method to assure that the costs for decommissioning are provided for at the expiration of the nuclear unit’s operating license.
    (c) A utility shall not change its annual nuclear decommissioning accruals without prior Commission approval.
    (5) Nuclear Decommissioning Fund Performance. The Commission will review and evaluate each utility’s investment performance to determine whether the decommissioning fund earned at least the rate of inflation.
    (6) License Renewal. Each utility shall provide the Commission Clerk with a written summary of communications concerning major milestones between the Nuclear Regulatory Commission and the utility concerning license renewal within 21 days of receipt or mailing by the utility. Major milestones include notice of intent to request a license renewal, submittal of application, issuance of renewal license, and decision to continue or cease operations.
Rulemaking Authority Florida Statutes § 350.127(2). Law Implemented 366.041, 366.06(1) FS. History-New 1-30-01.