ALJ/MD2/avs Date of Issuance 7/15/2011

Decision 11-07-003 July 14, 2011

BEFORE THE PUBLIC UTILITIES COMMISSION OF THE STATE OF CALIFORNIA

Application of Pacific Gas and Electric Company in its 2009 Nuclear Decommissioning Cost Triennial Proceeding (U39E).

Application 09-04-007
(Filed April 3, 2009)
(CONSOLIDATED)

Joint Application of Southern California Edison Company (U338E) and San Diego Gas & Electric Company (U902E) for the 2009 Nuclear Decommissioning Cost Triennial Proceeding to Set Contribution Levels for the Companies' Nuclear Decommissioning Trust Funds and Address Other Related Decommissioning Issues.

Application 09-04-009
(Filed April 3, 2009)

DECISION ADOPTING RECOMMENDATIONS OF THE INDEPENDENT PANEL ON NUCLEAR DECOMMISSIONING COSTS, ESTIMATES, ASSUMPTIONS, AND FORMAT

TABLE OF CONTENTS

Title Page

DECISION ADOPTING RECOMMENDATIONS OF THE INDEPENDENT PANEL ON NUCLEAR DECOMMISSIONING COSTS, ESTIMATES, ASSUMPTIONS, AND FORMAT 2 2

1. Summary 2 2

2. Background and Procedural History 2 2

3. The Panel's Work 5 5

4. The Final Report 8 8

4.1. Cost Drivers 9 9

4.2. U.S. Decommissioning Experience 10 10

4.3. Comparison of 2008 SONGS and Diablo Canyon Cost Estimates 13 13

4.4. SCE's Adjustments to Palo Verde Estimate 15 15

4.5. U.S. Decommissioning Cost Comparisons 16 16

4.5.1. Total Costs 17 17

4.5.2. Annual Cash Flows 18 18

4.5.3. Low Level Radioactive Waste 19 19

4.5.4. Staffing 19 19

4.5.5. Schedule 20 20

4.6. Emerging Radiological Issues 21 21

4.7. Minimizing Future Costs and Uncertainty 22 22

4.7.1. Minimizing Costs 22 22

4.7.2. Minimizing Uncertainty 24 24

4.8. Contingency Factor 24 24

4.9. Common Assumptions 26 26

4.10. Common Format 27 27

5. Recommendations 28 28

6. Position of the Parties 30 30

7. Discussion 31 31

8. Transparency of Major Decommissioning Expenditures 37 37

9. Comments of Proposed Decision 38 38

10. Assignment of Proceeding 38 38

Findings of Fact 38 38

Conclusions of Law 40 40

ORDER 41 41

Title Page

Attachment A - Information to be Included in Common Summary
Format for Decommissioning Cost Estimates
Submitted in NDCTP

Attachment B - Information to be Included in Nuclear Trust Fund
Disbursement Advice Letter Filings

DECISION ADOPTING RECOMMENDATIONS OF THE INDEPENDENT PANEL ON NUCLEAR DECOMMISSIONING COSTS, ESTIMATES, ASSUMPTIONS, AND FORMAT

1. Summary

This decision will greatly increase the transparency of nuclear decommissioning cost estimates and utility expenditures made for decommissioning. It adopts 12 recommendations made by an independent panel of experts that are expected to also improve the accuracy of decommissioning cost estimates and permit comparisons across utilities where appropriate. In addition, the decision approves a Tier 2 Advice Letter procedure and format for Commission review of the major decommissioning activities currently underway by Pacific Gas and Electric Company (PG&E) at the Humboldt Bay Nuclear Power Plant. The result is that the Commission will be better informed and able to fully exercise its jurisdictional oversight of decommissioning activities and costs in California.