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CPS Seeks To Suspend Nuclear Decommissioning Fee For Its AEP-TCC STP Share (Costs Charged To REPs Under Delivery Tariff)

August 6, 2018

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Copyright 2010-17 EnergyChoiceMatters.com
Reporting by Paul Ring • ring@energychoicematters.com

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The City of San Antonio has filed at the Texas PUC a decommissioning cost analysis for the South Texas Project nuclear electric generating station, in which, among other things, CPS Energy, "is recommending suspension of monthly recurring decommissioning fees collected from AEP-TCC's retail customers." (Docket 48556)

TCC is the collecting utility for 12.0% of CPS Energy's 40% ownership interest in STP Units 1 and 2.

The nuclear decommissioning amounts are ultimately charged to retail electric providers under AEP TCC Rider NDC - Nuclear Decommissioning Collections

CPS Energy is recommending suspending the decommissioning fees collected from AEP-TCC's retail customers for the 12% share based on calculations that existing trust funds are sufficient to cover the costs for decommissioning STP Units 1 and 2 associated with CPS Energy's 12% AEP-TCC Ownership Interest.

"Based on the funding analysis, CPS Energy is not requesting any further annual funding from AEP-TCC customers for the STP Unit 1, STP Unit 2, and Spent Fuel Subaccounts," a witness for CPS said

"However, if the assumptions used to determine funding adequacy for pre-shutdown decommissioning costs should change based on future cost studies and / or unanticipated pre-shutdown decommissioning activities (such as the need to replace and dispose of other large nuclear plant components, e.g., steam generators, earlier than anticipated), CPS Energy would reevaluate whether additional collections for the Pre-Shutdown Subaccount would be needed and would request through the Commission that those collections be reinstated from AEP-TCC customers," a witness for CPS said

Currently, $175,000 is collected annually from AEP TCC customers for CPS Energy's 12% AEP-TCC Ownership Interest.

Suspension of collection of this fee would result in a decrease to the amount charged to retail electric providers by AEP TCC via Rider NDC - Nuclear Decommissioning Collections

AEP TCC is also the collecting utility for 13.2% of NRG's 44.0% ownership interest in STP Units 1 and 2. Accordingly, the suspension of just the CPS amounts would not eliminate amounts collected under the rider completely.

NRG recently filed at the Texas PUC (Docket 48447) to decrease the annual decommissioning funding amount for both the amounts collected from AEP TCC customers and CenterPoint Energy Houston Electric customers.

AEP TCC serves as the collecting utility for NRG's 13.2% ownership interest in STP Units 1 and 2. For this 13.2% interest, NRG requested that the Commission reduce the annual decommissioning funding amount from $188,087 to $66,643

CenterPoint Energy Houston Electric serves as the collecting utility for NRG's 30.8% ownership interest in STP Units 1 and 2. For this 30.8% interest, NRG requested that the Commission reduce the annual decommissioning funding from $507,704 to $197,708

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