NRC Reconsiders Decommissioning Funding

Fortnightly Magazine - June 1 1996
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The Nuclear Regulatory Commission (NRC) is considering revising its regulations on nuclear plant decommissioning funding. Under current NRC regulations, adopted in 1988, an electric utility may set aside decommissioning funds annually over the estimated life of a plant. In a deregulated environment, however, a nuclear power licensee could lose its regulated rate base as a source to fund the balance of decommissioning expenses. Thus, the NRC may alter its rules to require licensees to prove they can finance the full decommissioning cost independently.

The NRC also proposes to require utilities to report periodically on the status of their decommissioning funds. Current rules also do not require reports because state and federal agencies actively monitor decommissioning funds, but the NRC believes a deregulated nuclear utility would escape such monitoring.

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