(U 338-E) 2018 Nuclear Decommissioning Cost Triennial Proceeding A Workpapers

Transcription

1 (U 338-E) 2018 Nuclear Decommissioning Cost Triennial Proceeding A Workpapers 2018 SCE Trust Fund Contributions and Financial Assumptions SCE-06 Chapter II: Burial Escalation Rate Calculation ( ) and Contribution Workpapers - March 2018

2 2018 NDCTP WPSCE SCE Trust Fund Contributions and Final Assumptions DOCUMENT WPCE-06 INDEX Chapter II PAGE(S) Workpapers for Burial Escalation Rate Calculation NDCTP SCE 06 Contribution Workpapers 14-33

3 1 Methodology

4 2 SCE estimates its LLRW disposal escalation rate using an econometric model of the form: ln( C ) a gt (1) t t where ln is the natural logarithm function (base e), Ct is the LLRW disposal cost index in year t, and t is a random error term (assumed to be zero for forecasting purposes). The source data are the LLRW disposal cost indexes found in various revisions of the NUREG-1307 publication. Over the years, this publication has provided LLRW disposal cost indexes for sites in the states of Nevada, South Carolina, and Washington. For the South Carolina and Washington sites, there are separate indexes for direct LLRW disposal and for dispostion of waste by vendors. For the South Carolina site, there are different indexes for Atlantic Compact and non-atlantic Compact members. The NUREG publication now uses the Atlantic Compact index as a proxy for disposal costs at a generic site. Since 2009, SCE has computed LLRW disposal escalation growth rates for five different indexes: Nevada, South Carolina non-atlantic Compact direct, South Carolina non-atlantic Compact vendor, Washington direct, and Washington vendor. The use of the South Carolina Atlantic Compact indexes as a proxy for a generic site suggests the inclusion of two additional indexes: South Carolina Atlantic Compact direct and South Carolina Atlantic Compact vendor, making seven potential indexes in all. However, for this NDCTP application, SCE has based its LLRW disposal escalation index on the same five indexes utilized previously. Estimation of equation (1) provides an exponential growth rate, as equation (1) can be rewritten (after taking the anti-logarithm of both sides) as C gt t C 0 e (2)

5 3 However, what we need for modeling purposes is an annual escalation factor, not an instantaneous growth rate. Based on equation (2), we can calculate an annual escalation factor as follows: annual growth rate C C C e C e g( t 1) gt t 1 t 0 0 g e gt Ct C0 e 1 (3) Growth Rate Estimates Five Growth Rates Averaged Seven Growth Rates Averaged g g (Exponential Growth Rate) Annual Growth Rate (Exponential Growth Rate) Annual Growth Rate Including Revision % 7.47% 7.33% 7.61%

6 4 R Input File

7 Southern California Edison Company start time time <- Sys.time() time Load RODBC package (to read Excel spreadsheet using ODBC drivers) library(rodbc) get NUREG data from.csv file nureg_data <- read.csv("nureg_data_15f.csv", header = TRUE, na.strings = c("na","n/a","n/a N/A","REF!")) str(nureg_data) nureg_data remove R15 data not final (for 2012) [code commented out here so that R15 data is included] nureg_data <- subset(nureg_data, nureg_data[,1] < 2012) nureg_data time variable time_ <- nureg_data$year log regression function logreg <- function(cost_vector,time_vector) {logvar <- log(cost_vector) reg.lm <- lm(logvar ~ time_vector) regression_output <- summary(reg.lm) print(regression_output) growth_rate <- coefficients(regression_output)[2,1] } Nevada PWR grnevpwr <- logreg(nureg_data$nevpwr, time_) grnevpwr South Carolina Non-Atlantic Compact PWR grscnacpwr <- logreg(nureg_data$scnacpwr, time_) grscnacpwr South Carolina Non-Atlantic Compact PWR Vendor grscnacpwrv <- logreg(nureg_data$scnacpwrv, time_) grscnacpwrv Washington PWR grwashpwr <- logreg(nureg_data$washpwr, time_) grwashpwr Washington PWR Vendor grwashpwrv <- logreg(nureg_data$washpwrv, time_) grwashpwrv South Carolina Atlantic Compact PWR grscacpwr <- logreg(nureg_data$scacpwr, time_) grscacpwr South Carolina Atlantic Compact PWR Vendor grscacpwrv <- logreg(nureg_data$scacpwrv, time_) grscacpwrv Seven growth rates growth7 <- c(grnevpwr, grscnacpwr, grscnacpwrv, grwashpwr, grwashpwrv, grscacpwr, grscacpwrv) growth7 summary(growth7) growth7_mean <- mean(growth7) growth7_mean growth7_annual = exp(growth7_mean) - 1 growth7_annual Five growth rates

8 6 growth5 <- c(grnevpwr, grscnacpwr, grscnacpwrv, grwashpwr, grwashpwrv) growth5 summary(growth5) growth5_mean <- mean(growth5) growth5_mean growth5_mean_annual = exp(growth5_mean) - 1 growth5_mean_annual growth5_median <- median(growth5) growth5_median growth5_median_annual = exp(growth5_median) - 1 growth5_median_annual quit q()

9 7 R Output

10 8 R version ( ) -- "Kite-Eating Tree" Copyright (C) 2017 The R Foundation for Statistical Computing Platform: x86_64-w64-mingw32/x64 (64-bit) R is free software and comes with ABSOLUTELY NO WARRANTY. You are welcome to redistribute it under certain conditions. Type 'license()' or 'licence()' for distribution details. Natural language support but running in an English locale R is a collaborative project with many contributors. Type 'contributors()' for more information and 'citation()' on how to cite R or R packages in publications. Type 'demo()' for some demos, 'help()' for on-line help, or 'help.start()' for an HTML browser interface to help. Type 'q()' to quit R. > > Southern California Edison Company > start time > time <- Sys.time() > time [1] " :53:31 PDT" > > > Load RODBC package (to read Excel spreadsheet using ODBC drivers) > library(rodbc) > > > get NUREG data from.csv file > nureg_data <- read.csv("nureg_data_15f.csv", header = TRUE, + na.strings = c("na","n/a","n/a N/A","REF!")) > str(nureg_data) 'data.frame': 16 obs. of 10 variables: $ year : int $ washpwr : num $ washpwrv : num NA NA NA NA NA... $ nevpwr : num NA NA... $ scnacpwr : num $ scnacpwrv : num NA NA NA NA NA... $ scacpwr : num $ scacpwrv : num NA NA NA NA NA... $ genericpwr : num NA NA NA NA NA NA NA NA NA NA... $ genericpwrv: num NA NA NA NA NA NA NA NA NA NA... > nureg_data year washpwr washpwrv nevpwr scnacpwr scnacpwrv scacpwr scacpwrv genericpwr NA NA NA NA NA NA NA NA NA NA NA NA NA NA NA NA NA NA NA NA NA NA NA NA NA NA NA NA NA NA NA NA NA NA NA NA NA NA NA NA NA NA NA NA NA NA NA NA NA NA NA NA NA NA NA NA genericpwrv 1 NA 2 NA 3 NA 4 NA 5 NA 6 NA

11 9 7 NA 8 NA 9 NA 10 NA 11 NA 12 NA 13 NA > remove R15 data not final (for 2012) [code commented out here so that R15 data is included] > nureg_data <- subset(nureg_data, nureg_data[,1] < 2012) > nureg_data > time variable > time_ <- nureg_data$year > > log regression function > logreg <- function(cost_vector,time_vector) + {logvar <- log(cost_vector) + reg.lm <- lm(logvar ~ time_vector) + regression_output <- summary(reg.lm) + print(regression_output) + growth_rate <- coefficients(regression_output)[2,1] + } > > Nevada PWR > grnevpwr <- logreg(nureg_data$nevpwr, time_) Call: lm(formula = logvar ~ time_vector) Residuals: Coefficients: Estimate Std. Error t value Pr(> t ) (Intercept) time_vector Residual standard error: on 1 degrees of freedom (13 observations deleted due to missingness) Multiple R-squared: , Adjusted R-squared: F-statistic: on 1 and 1 DF, p-value: > grnevpwr [1] > > South Carolina Non-Atlantic Compact PWR > grscnacpwr <- logreg(nureg_data$scnacpwr, time_) Call: lm(formula = logvar ~ time_vector) Residuals: Min 1Q Median 3Q Max Coefficients: Estimate Std. Error t value Pr(> t ) (Intercept) * time_vector e-05 *** --- Signif. codes: 0 '***' '**' 0.01 '*' 0.05 '.' 0.1 ' ' 1 Residual standard error: on 11 degrees of freedom (3 observations deleted due to missingness) Multiple R-squared: 0.79, Adjusted R-squared: F-statistic: on 1 and 11 DF, p-value: 4.861e-05 > grscnacpwr

12 10 [1] > > South Carolina Non-Atlantic Compact PWR Vendor > grscnacpwrv <- logreg(nureg_data$scnacpwrv, time_) Call: lm(formula = logvar ~ time_vector) Residuals: Coefficients: Estimate Std. Error t value Pr(> t ) (Intercept) ** time_vector Signif. codes: 0 '***' '**' 0.01 '*' 0.05 '.' 0.1 ' ' 1 Residual standard error: on 3 degrees of freedom (11 observations deleted due to missingness) Multiple R-squared: , Adjusted R-squared: F-statistic: on 1 and 3 DF, p-value: > grscnacpwrv [1] > > Washington PWR > grwashpwr <- logreg(nureg_data$washpwr, time_) Call: lm(formula = logvar ~ time_vector) Residuals: Min 1Q Median 3Q Max Coefficients: Estimate Std. Error t value Pr(> t ) (Intercept) time_vector e-09 *** --- Signif. codes: 0 '***' '**' 0.01 '*' 0.05 '.' 0.1 ' ' 1 Residual standard error: on 14 degrees of freedom Multiple R-squared: , Adjusted R-squared: F-statistic: on 1 and 14 DF, p-value: 2.138e-09 > grwashpwr [1] > > Washington PWR Vendor > grwashpwrv <- logreg(nureg_data$washpwrv, time_) Call: lm(formula = logvar ~ time_vector) Residuals: Min 1Q Median 3Q Max Coefficients: Estimate Std. Error t value Pr(> t ) (Intercept) * time_vector Signif. codes: 0 '***' '**' 0.01 '*' 0.05 '.' 0.1 ' ' 1 Residual standard error: on 6 degrees of freedom (8 observations deleted due to missingness) Multiple R-squared: , Adjusted R-squared:

13 11 F-statistic: on 1 and 6 DF, p-value: > grwashpwrv [1] > > South Carolina Atlantic Compact PWR > grscacpwr <- logreg(nureg_data$scacpwr, time_) Call: lm(formula = logvar ~ time_vector) Residuals: Min 1Q Median 3Q Max Coefficients: Estimate Std. Error t value Pr(> t ) (Intercept) ** time_vector e-06 *** --- Signif. codes: 0 '***' '**' 0.01 '*' 0.05 '.' 0.1 ' ' 1 Residual standard error: on 14 degrees of freedom Multiple R-squared: , Adjusted R-squared: F-statistic: on 1 and 14 DF, p-value: 1.367e-06 > grscacpwr [1] > > South Carolina Atlantic Compact PWR Vendor > grscacpwrv <- logreg(nureg_data$scacpwrv, time_) Call: lm(formula = logvar ~ time_vector) Residuals: Min 1Q Median 3Q Max Coefficients: Estimate Std. Error t value Pr(> t ) (Intercept) *** time_vector ** --- Signif. codes: 0 '***' '**' 0.01 '*' 0.05 '.' 0.1 ' ' 1 Residual standard error: on 6 degrees of freedom (8 observations deleted due to missingness) Multiple R-squared: , Adjusted R-squared: F-statistic: on 1 and 6 DF, p-value: > grscacpwrv [1] > > > Seven growth rates > growth7 <- c(grnevpwr, grscnacpwr, grscnacpwrv, grwashpwr, grwashpwrv, grscacpwr, grscacpwrv) > growth7 [1] > summary(growth7) Min. 1st Qu. Median Mean 3rd Qu. Max > growth7_mean <- mean(growth7) > growth7_mean [1] > growth7_annual = exp(growth7_mean) - 1 > growth7_annual [1] > > > Five growth rates

14 12 > growth5 <- c(grnevpwr, grscnacpwr, grscnacpwrv, grwashpwr, grwashpwrv) > growth5 [1] > summary(growth5) Min. 1st Qu. Median Mean 3rd Qu. Max > growth5_mean <- mean(growth5) > growth5_mean [1] > growth5_mean_annual = exp(growth5_mean) - 1 > growth5_mean_annual [1] > growth5_median <- median(growth5) > growth5_median [1] > growth5_median_annual = exp(growth5_median) - 1 > growth5_median_annual [1] > > > quit > q() > proc.time() user system elapsed

15 13

16 14 SCE 06 Section IV page 17 lines 5-6 SCE Nuclear Decommissioning Trust December 31, Estimated Liquidation Value Calculation % of % of Liquidation Qualified Trust Cost Fund Market Value Fund Value* Fixed Income $2,617,966, % $2,781,282, % $ 2,737,069, BlackRock $310,720, $319,874, ,395, BlackRock - Enhanced Cash $166,457, $166,035, ,149, Alliance Bernstein Fixed $772,198, $ 801,052, ,241, PIMCO $604,485, $605,966, ,565, Schroders (STW) $712,056, $836,305, ,668, Cash $52,048, $52,048, ,048, U. S. Equity $ 105,027, % $ 1,121,664, % $ 846,440, Rhumbline $15,187, $89,440, ,338, Alliance Bernstein Equity $0.00 $ RCM $0.00 $ - - State Street (SSgA) $89,840, $1,032,224, ,101, Cash $0.00 $ International $ 169,206, % $ 483,459, % $ 398,384, PanAgora $169,206, $483,459, ,384, Cash $0.00 $ Qualified Trust Total $ 2,892,201, % $ 4,386,406, % $ 3,981,895, Non-Qualified Trust U.S. Equity $ 27, % $ 27, % $ 27, RCM $2, $2, , State Street (SSgA) $24, $24, , Cash $0.00 $ Fixed Income $53,965, % $ 53,873, % $ 53,910, PIMCO $53,965, $ 53,873, ,910, Cash $0.00 $ International $ % $ % $ - Self Directed ( ) $0.00 $ Cash $0.00 $ Total Non-Qualified Trust $ 53,993, % $ 53,900, % $ 53,938, Total Trust $ 2,946,194, $ 4,440,307, $ 4,035,833, Source: Trustee statements. *Market value adjusted for estimated deferred taxes on unrealized gains. Capital Gains Tax Rates Qualified Federal 20.00% State 8.84% Combined % Non-Qualified Federal 35.00% State 8.84% Combined %

17 15 SCE 06 Section IV page 17 lines 5-6 SCE Nuclear Decommissioning Trust December 31, Estimated Liquidation Value Calculation Liquidation Qualified Trust Cost Market Value Value* San Onofre 1 $153,087, $304,679, ,640, San Onofre 2 $834,697, $1,290,429, ,167,054, San Onofre 3 $959,359, $1,522,942, ,370,369, Total San Onofre 1,947,145, ,118,051, ,801,063, Palo Verde 1 $306,834, $411,751, ,348, Palo Verde 2 $315,257, $421,298, ,591, Palo Verde 3 $322,963, $435,305, ,891, Total Palo Verde 945,055, ,268,354, ,180,831, Qualified Trust Total 2,892,201, ,386,405, ,981,894, Non-Qualified Trust San Onofre 1 39,935, ,859, ,890, San Onofre 2 13,365, ,342, ,352, San Onofre 3 570, , , Total San Onofre 53,871, ,777, ,815, Palo Verde 1 59, , , Palo Verde 2 62, , , Palo Verde 3 - Total Palo Verde 121, , , Nonqualified Trust Total 53,993, ,900, ,938, Total Trust (Qualified & Non-Qualified) San Onofre 1 193,023, ,538, ,531, San Onofre 2 848,063, ,303,772, ,180,406, San Onofre 3 959,929, ,523,517, ,370,942, Total San Onofre 2,001,016, ,171,828, ,854,879, Palo Verde 1 306,893, ,811, ,408, Palo Verde 2 315,320, ,361, ,653, Palo Verde 3 322,963, ,305, ,891, Total Palo Verde 945,177, ,268,478, ,180,953, Total Trust $ 2,946,194, $ 4,440,306, $ 4,035,833,177.86

18 16 SCE 06 Section IV page 17 and page 18 lines 1-2 and page 19 Table IV-7 SONGS 1 Qualified Trust Annual Ratepayer Contribution Beginning Of End Of Beginning Of Tax Benefit, Prior SONGS 1 Non Qualified Trust After Tax ROR After Tax Return End Of Required, Qualified Trust , , , ,712 3, ,002 39, % 1,030 3,510 37, , ,002 3, ,311 37, % 966 3,868 35, , ,311 3, ,508 35,491 1, % 917 3,637 33, , ,508 51, ,060 33,853 1, % , , , ,060 2, , , % 23 2,632 8, ,994 2, ,264 8, % 207 2,058 6, ,264 1, ,046 6, % 178 1,871 5, ,046 1, ,265 5, % 150 1,983 4, ,265 1, ,850 4, % 116 1,922 3, ,850 1, ,775 3, % 83 1,924 1, ,775 3, ,970 1, % 50 2, , ,970 3, , % , ,925 4, , % , ,365 3, , % , ,637 3, , % , ,774 2, , % , ,667 3, , % , ,780 4, , % , , , % , , % , , % , , % , , % , , % , , % , , % , , % , , % , , % , , % ,964 4, , % , ,494 3, , % , ,558 98,295 96, % , ,987 98, % ,243

19 17 SCE 06 Section IV page 17 and page 18 lines 1-2 SONGS 1 Qualified Trust Equity, Cost Basis Beginning Of Contribution Pay Cost Dividends Earned (After Tax) Realized Gain (After Tax) End Of 14,516 14,516 1,011 12, ,397 16,907 19,203 19,203 2,364 12, ,235 13,333 23,604 23,604 1,135 12, ,067 10,559 24,052 24, ,242 2, ,502 17,559 17,559 1,260 13, ,954 12,250 12,250 4, ,774 22,099 22,099 4, ,920 31,373 31,373 4, ,314 39,617 39,617 3, ,888 46,399 46,399 3, ,605 53,278 53,278 4, ,419 60,629 60,629 3, ,206 1,061 2,299 66,721 66, ,128 1,080 2,198 68,058 68,058 1, ,689 1,071 2,097 68,085 68,085 1, ,760 1,063 2,016 67,833 67,833 1, ,390 1,057 1,964 67,906 67,906 1, ,777 1,052 1,915 67,544 67,544 1, ,007 1,044 1,873 66,991 66,991 1, ,045 1,877 68,050 68,050 1, ,060 1,887 69,102 69,102 2, ,060 1,873 69,097 69,097 4, ,027 1,807 67,013 67,013 6, ,692 62,997 62,997 7, ,532 57,196 57,196 10, ,309 48,981 48,981 12, ,017 38,127 38,127 11, ,787 27,787 10, ,266 18,266 8, ,619 10,619 5, ,018 5,018 3, ,859 1,859 1,

20 18 SCE 06 Section IV page 17 and page 18 lines 1-2 Rebalancing Calculation Maximum Equity Percentage Actual Equity Percentage Actual Bond Percentage Market Cost Capital Gain Tax Contribution Bonds % 38.09% 61.91% 7,766 1,011 1,829 5, % 34.75% 65.25% 2,364 2, , % 34.94% 65.06% 1,135 1, , % 34.92% 65.08% % 33.76% 66.24% 1,260 1, , % 33.20% 66.80% 4,478 4, , % 36.83% 63.17% 4,683 4, , % 40.83% 59.17% 4,185 4, , % 44.48% 55.52% 3,082 3, , % 47.23% 52.77% 3,387 3, , % 50.23% 49.77% 4,405 4, , % 54.03% 45.97% 3,939 3, , % 57.44% 42.56% % 57.93% 42.07% 1,648 1, , % 57.09% 42.91% 1,773 1, , % 56.18% 43.82% 1,753 1, , % 55.30% 44.70% 1,740 1, , % 54.45% 45.55% 1,637 1, , % 53.68% 46.32% 1,787 1, , % 52.83% 47.17% 1,817 1, , % 52.00% 48.00% 2,942 2, , % 50.46% 49.54% 5,191 4, , % 47.51% 52.49% 7,161 6, , % 43.41% 56.59% 8,861 7, , % 38.38% 61.62% 11,220 10, , % 32.03% 67.97% 13,689 12, , % 24.34% 75.66% 12,660 11, , % 17.34% 82.66% 11,359 10, , % 11.15% 88.85% 8,950 8, , % 6.34% 93.66% 6,432 5, , % 2.94% 97.06% 3,551 3, , % 1.08% 98.92% 2,066 1, , % 0.00% % % 0.00% % % 0.00% %

21 19 SCE 06 Section IV page 17 and page 18 lines 1-2 SONGS 1 Qualified Trust Equity, Market Value Beginning Of Capital Gain Tax, Contribution Pay Cost Including Tax Pay Cost Capital Gains Tax, Pay Cost Equity Rate of Return Dividend Rate of Return Dividends Earned (After Tax) Price Appreciation Rate of Return Price Appreciation Unrealized Gain Realized Gain (Turnover) Capital Gains Tax on Realized Gain , ,492 5,937 1,829 12, % 1.97% 1, % 3,753 93,975 23,184 6,276 16,907 89, ,994 2, , % 1.97% 1, % 3,317 74,108 18,282 4,949 13,333 79, ,430 1, , % 1.97% 1, % 2,867 58,692 14,479 3,920 10,559 68, , ,242 7,178 5,919 1, % 1.97% % 2,249 41,700 10,288 2,785 7,502 48, ,972 1, , % 1.97% % 1,682 33,095 8,165 2,210 5,954 37, ,181 4, % 1.97% % 1,605 26,535 6,546 1,772 4,774 42, ,089 4, % 1.97% % 1,802 21,791 5,376 1,455 3,920 47, ,789 4, % 1.97% % 2,002 18,417 4,544 1,230 3,314 53, ,492 3, % 1.97% % 2,179 16,053 3,960 1,072 2,888 58, ,493 3, % 1.97% % 2,384 14,477 3, ,605 64, ,184 4, % 1.97% % 2,632 13,445 3, ,419 70, ,758 3, ,408 1, % 1.97% 1, % 2,851 12,777 3, ,299 76, , ,435 2, % 1.97% 1, % 2,902 12,219 3, ,198 77, ,265 1, ,917 1, % 1.97% 1, % 2,876 11,656 2, ,097 76, ,867 1, ,987 1, % 1.97% 1, % 2,855 11,206 2, ,016 76, ,276 1, ,563 1, % 1.97% 1, % 2,841 10,915 2, ,964 76, ,130 1, ,993 1, % 1.97% 1, % 2,827 10,647 2, ,915 75, ,566 1, ,246 2, % 1.97% 1, % 2,805 10,413 2, ,873 74, ,837 1, % 1.97% 1, % 2,808 10,434 2, ,877 75, ,911 1, % 1.97% 1, % 2,849 10,490 2, ,887 77, ,006 2, % 1.97% 1, % 2,847 10,413 2, ,873 76, ,942 5, % 1.97% 1, % 2,759 10,045 2, ,807 74, ,581 6, % 1.97% % 2,592 9,405 2, ,692 70, ,083 8, % 1.97% % 2,353 8,515 2, ,532 63, ,611 10, % 1.97% % 2,014 7,277 1, ,309 54, ,463 13, % 1.97% % 1,568 5,655 1, ,017 42, ,388 12, % 1.97% % 1,143 4,117 1, , ,889 11, % 1.97% % 751 2, , ,303 8, % 1.97% % 437 1, , ,802 6, % 1.97% % , ,578 3, % 1.97% % , ,066 2, % 1.97% % % 1.97% % % 1.97% % Realized Gain (After Tax) End Of

22 20 SCE 06 Section IV page 17 and page 18 lines 1-2 SONGS 1 Qualified Trust Bonds (LV Starting ) Beginning Of Contribution Contribution Pay Cost Bond Rate of Return Interest Earned (After Tax) End Of 181, ,221 5,937 22, % 4, , ,008 2,364 22, % 4, , ,882 1,135 23, % 3, , , ,111 11, % 2,884 96,088 96,088 1,260 22, % 2,190 74,814 74,814 4, % 1,839 72,176 72,176 4, % 1,765 69,258 69,258 4, % 1,702 66,775 66,775 3, % 1,666 65,358 65,358 3, % 1,621 63,592 63,592 4, % 1,541 60,213 60,213 3, , % 1,457 56,579 56, , % 1,452 56,102 56,102 1, , % 1,490 57,771 57,771 1, , % 1,536 59,499 59,499 1, , % 1,584 61,539 61,539 1, , % 1,632 63,216 63,216 1, , % 1,670 64,564 64,564 1, % 1,730 67,771 67,771 1, % 1,815 71,080 71,080 2, % 1,929 75,547 75,547 5, % 2,104 82,388 82,388 6, % 2,332 91,341 91,341 8, % 2, , ,136 10, % 2, , ,569 13, % 3, , ,757 12, % 3, , ,212 11, % 4, , ,788 8, % 4, , ,292 6, % 4, , ,386 3, , % 4, , ,428 2, , % 4, , , , % 3,724 96,987 96, , % 1,252 5

23 21 SCE 06 Section IV page 17 and page 18 lines 1-2 SONGS 1 Decommissioning Costs SONGS 1 Liquidation Value Total Cost Equity Liquidation Value Bond Liquidation Value Total Liquidation Value ,510 70, , , ,868 64, , , ,637 56, , , ,864 40, , , ,632 30,431 96, , ,058 36,677 74, , ,871 43,344 72, , ,983 49,735 69, , ,922 55,218 66, , ,924 61,231 65, , ,502 68,015 63, , ,245 73,740 60, , ,303 74,771 56, , ,330 74,489 56, , ,468 73,989 57, , ,765 73,903 59, , ,580 73,393 61, , ,094 72,712 63, , ,782 64, , ,865 67, , ,817 71, , ,531 75, , ,163 82, , ,873 91, , , , , , , , , , , , , , , , , , , , ,316 2, , , , , , , , , , ,987 96,987

24 22 SCE 06 Section IV page 17 lines 1-12 and page 18 lines 3-13 and page 19 Tables IV-6 and IV-7 Required SONGS 2 Qualified Trust SONGS 2 Non-Qualified Trust Annual Ratepayer Contribution Beginning Of End Of Beginning Of Tax Benefit, Prior- After Tax ROR After Tax Return End Of Required, Qualified Trust ,274, ,813 1,274, ,751 1,169, % , ,813 1,169,474 69,306 1,108, % , ,813 1,108,638 62,799 1,058, % , ,813 1,058, , , % , , , , , % , , , , % , ,038 73, , % , ,809 59, , % , ,858 82, , % , ,722 65, , % , ,454 28, , % , ,659 11, , % , ,057 10, , % , ,856 11, , % , ,877 12, , % , ,343 14, , % , ,527 14, , % , ,387 16, , % , ,231 16, , % , ,667 14, , % , ,748 14, , % , ,540 15, , % , ,964 16, , % , ,516 16, , % , ,896 17, , % , ,081 18, , % , ,970 24, , % , ,570 24, , % , ,011 63, , % , , , , % , , , , % , ,510 93, , % , ,776 48,335 55, % , ,668 56, % ,455

25 23 SCE 06 Section IV page 17 lines 1-12 and page 18 lines 3-13 and page 19 Tables IV-6 and IV-7 SONGS 2 Qualified Trust Equity, Cost Basis Beginning Of Contribution Pay Cost Dividends Earned (After-Tax) Realized Gain (After- Tax) End Of 79, , ,500-8,398 6,387 66, , , ,478-10,101 5,739 49, , ,970 6,596-3,418-11,974 5,427 37, , , ,398-29,582 4,896 26, , ,110 2,879-3,650-40,269 4,201 18, , ,392 23, ,886 3,900 13, , ,337 23, ,084 3,863 10, , ,523 19, ,360 3,890 9, , ,557 12, ,840 3,772 7, , ,245 12, ,980 3,609 6, , ,587 15, ,172 3,646 6, , ,039 13, ,911 3,844 6, , , ,705 3,927 6, , ,966-5, ,044 3,920 6, , ,321-5, ,297 3,901 6, , ,989-5, ,389 3,872 6, , ,557-5, ,461 3,835 6, , ,088-5, ,346 3,794 6, , ,970-5, ,910 3,741 6, , ,687-5, ,023 3,698 6, , ,333-8, ,896 3,608 6, , ,508-15, ,934 3,409 5, , ,513-20, ,510 3,119 5, , ,759-25, ,646 2,758 4, , ,560-31, ,155 2,297 3, , ,627-36, ,024 1,735 3, , ,468-33, ,921 1,219 2,101 77, ,754-28, , ,324 48, ,910-21, , , ,867-13, , , ,045-5, , , ,813-1,

26 24 SCE 06 Section IV page 17 lines 1-12 and page 18 lines 3-13 and page 19 Tables IV-6 and IV-7 SONGS 2 Qualified Trust Equity, Market Value Beginning Of Capital Gain Tax, Contribution Pay Cost - Including Tax Pay Cost Capital Gains Tax, Pay Cost Equity Rate of Return Dividend Rate of Return Dividends Earned (After-Tax) Price Appreciation Rate of Return Price Appreciation Unrealized Gain Realized Gain (Turnover) Capital Gains Tax on Realized Gain Realized Gain (After Tax) End Of 472, , ,500-50,104-38,813-11, % 1.97% 6, % 17, ,517 90,913-24,612 66, , , ,478-30,140-24,715-5, % 1.97% 5, % 15, ,634 67,259-18,208 49, , ,345 6, ,418-25,563-21,885-3, % 1.97% 5, % 14, ,365 50,910-13,782 37, , ,184-1, ,398-50,999-45,201-5, % 1.97% 4, % 13, ,541 36,152-9,787 26, , ,500 2, ,650-61,226-55,552-5, % 1.97% 4, % 11, ,718 24,847-6,727 18, , ,262 23, ,610-38,436-3, % 1.97% 3, % 10,477 74,623 18,410-4,984 13, , ,550 23, ,434-27,715-1, % 1.97% 3, % 10,379 60,242 14,862-4,023 10, , ,903 19, ,775-24,580-1, % 1.97% 3, % 10,450 51,415 12,684-3,434 9, , ,288 12, ,357-36,864-1, % 1.97% 3, % 10,134 43,349 10,694-2,895 7, , ,899 12, ,091-30,978-1, % 1.97% 3, % 9,696 38,240 9,434-2,554 6, , ,392 15, ,916-14, % 1.97% 3, % 9,796 36,858 9,093-2,462 6, , ,804 13, ,624-6, % 1.97% 3, % 10,327 37,378 9,221-2,496 6, , , ,352-6, % 1.97% 3, % 10,551 38,061 9,390-2,542 6, , ,638-5, ,726-6, % 1.97% 3, % 10,530 37,916 9,354-2,532 6, , ,883-6, ,007-6, % 1.97% 3, % 10,479 37,687 9,297-2,517 6, , ,378-6, ,222-7, % 1.97% 3, % 10,402 37,324 9,208-2,493 6, , ,673-5, ,302-8, % 1.97% 3, % 10,302 36,959 9,118-2,468 6, , ,929-5, ,286-9, % 1.97% 3, % 10,192 36,515 9,008-2,439 6, , ,476-6, ,802-8, % 1.97% 3, % 10,049 36,033 8,889-2,407 6, , ,830-5, ,815-7, % 1.97% 3, % 9,934 35,671 8,800-2,382 6, , ,204-9, ,673-7, % 1.97% 3, % 9,692 34,794 8,584-2,324 6, , ,718-16, ,716-7, % 1.97% 3, % 9,159 32,854 8,105-2,194 5, , ,262-22, ,244-7, % 1.97% 3, % 8,380 30,053 7,414-2,007 5, , ,398-27, ,282-6, % 1.97% 2, % 7,410 26,582 6,558-1,775 4, , ,585-33, ,737-5, % 1.97% 2, % 6,170 22,111 5,455-1,477 3, , ,283-39,910-1, ,478-4, % 1.97% 1, % 4,662 16,703 4,121-1,116 3, , ,051-35,839-1, ,363-4, % 1.97% 1, % 3,275 11,678 2, ,101 86, ,551-30, ,755-2, % 1.97% % 2,061 7,358 1, ,324 54, ,453-23, ,071-3, % 1.97% % 1,098 3, , ,724-14, ,135-4, % 1.97% % 409 1, , ,016-5, ,383-1, % 1.97% % , ,046-1, % 1.97% % % 1.97% % % 1.97% %

27 25 SCE 06 Section IV page 17 lines 1-12 and page 18 lines 3-13 and page 19 Tables IV-6 and IV-7 SONGS 2 Qualified Trust Bonds (LV Starting ) Beginning Of Contribution Contribution Pay Cost Bond Rate of Return Interest Earned (After Tax) End Of 802, , ,314-65, % 21, , , ,335-44, % 20, , ,293-6,596-6,395-40, % 19, , ,241 1,374-6,415-84, % 18, , ,121-2,879-6, , % 16, , ,784-23, , % 13, , ,487-23, , % 11, , ,906-19, , % 9, , ,569-12, , % 8, , ,823-12, , % 7, , ,061-15, , % 6, , ,855-13, , % 5, , , , % 5, , ,218 5, , % 5, , ,994 6, , % 6, , ,965 6, , % 6, , ,854 5, , % 6, , ,458 5, , % 6, , ,755 6, , % 6, , ,837 5, , % 6, , ,544 9, , % 7, , ,822 16, , % 7, , ,702 22, , % 8, , ,118 27, , % 9, , ,311 33, , % 9, , ,798 39, , % 10, , ,920 35, , % 11, , ,019 30, , % 12, , ,558 23, , % 12, , ,643 14, , % 10, , ,398 5, , % 7, , ,465 1, , % 4, , , , % 2,226 55, , , % 787 0

28 26 SCE 06 Section IV page 17 lines 1-12 and page 18 lines 3-13 and page 19 Tables IV-6 and IV-7 Rebalancing Calculation Maximum Equity Percentage Actual Equity Percentage Actual Bond Percentage Market Cost Capital Gain Tax Contribution Bonds 37.05% 37.05% 62.95% % 35.70% 64.30% % 34.85% 65.15% -6,596-6, , % 34.97% 65.03% 1, , % 34.32% 65.68% -2,879-2, , % 34.21% 65.79% -23,505-23, , % 37.54% 62.46% -23,568-23, , % 41.40% 58.60% -19,254-19, , % 44.89% 55.11% -12,956-12, , % 47.58% 52.42% -12,832-12, , % 50.55% 49.45% -15,347-15, , % 54.20% 45.80% -13,565-13, , % 57.46% 42.54% % 57.93% 42.07% 5,946 5, , % 57.08% 42.92% 6,360 5, , % 56.15% 43.85% 6,264 5, , % 55.26% 44.74% 6,111 5, , % 54.40% 45.60% 5,714 5, , % 53.63% 46.37% 6,228 5, , % 52.76% 47.24% 6,061 5, , % 51.92% 48.08% 9,788 8, , % 50.38% 49.62% 17,114 15, , % 47.43% 52.57% 23,113 20, , % 43.33% 56.67% 27,923 25, , % 38.30% 61.70% 34,555 31, , % 31.96% 68.04% 41,036 36,875 1,126 39, % 24.28% 75.72% 36,851 33,113 1,012 35, % 17.29% 82.71% 31,679 28, , % 11.11% 88.89% 23,911 21, , % 6.31% 93.69% 15,049 13, , % 2.90% 97.10% 5,705 5, , % 1.07% 98.93% 2,045 1, , % 0.00% % % 0.00% % % 0.00% %

29 27 SCE 06 Section IV page 17 lines 1-12 and page 18 lines 3-13 and page 19 Tables IV-6 and IV-7 SONGS 2 Decommissioning Costs SONGS 2 Liquidation Value Total Cost Equity Liquidation Value Bond Liquidation Value Total Liquidation Value , , ,208 1,144, , , ,935 1,082, , , ,293 1,050, , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , ,816 84, , , ,398 52, , , ,436 26, , , ,184 8, , , ,834 1, , , , , , , , , , ,668 55,668

30 28 SCE 06 Section IV page 17 lines 1-12 and page 18 lines 3-13 and page 19 Tables IV-6 and IV-7 Required SONGS 3 Qualified Trust SONGS 3 Non-Qualified Trust Annual Ratepayer Contribution Beginning Of End Of Beginning Of Tax Benefit, Prior- After Tax ROR After Tax Return End Of Required, Qualified Trust ,499, ,814 1,499, ,344 1,377, % , ,814 1,377,656 78,189 1,298, % , ,814 1,298,663 83,033 1,218, % , ,814 1,218, ,656 1,101, % , ,814 1,101, , , % , , , , % , ,931 87, , % , ,315 95, , % , ,586 81, , % , ,529 71, , % , ,450 29, , % , ,799 12, , % , ,533 11, , % , ,894 13, , % , ,584 14, , % , ,482 16, , % , ,505 16, , % , ,275 19, , % , ,780 17, , % , ,192 16, , % , ,382 16, , % , ,277 17, , % , ,882 21, , % , ,280 20, , % , ,584 21, , % , ,660 21, , % , ,202 35, , % , ,054 34, , % , ,071 65, , % , , , , % , , , , % , , , , % , , , , % , , , % ,787

31 29 SCE 06 Section IV page 17 lines 1-12 and page 18 lines 3-13 and page 19 Tables IV-6 and IV-7 SONGS 3 Qualified Trust Equity, Cost Basis Beginning Of Contribution Pay Cost Dividends Earned (After-Tax) Realized Gain (After- Tax) End Of 90, , ,779-8,768 7,551 79, , , ,732-11,115 6,743 58, , ,959 7,861-7,599-15,501 6,303 43, , , ,554-27,041 5,693 32, , ,375 2,863-8,114-33,853 5,035 23, , ,526 28, ,702 4,839 17, , ,632 30, ,984 4,875 14, , ,996 24, ,145 4,863 11, , ,019 15, ,619 4,709 10, , ,708 16, ,715 4,617 8, , ,321 20, ,585 4,736 8, , ,235 17, ,418 5,035 8, , , ,228 5,166 9, , ,563-7, ,067 5,172 9, , ,657-7, ,481 5,161 8, , ,775-7, ,407 5,140 8, , ,981-7, ,489 5,113 8, , ,172-6, ,541 5,082 8, , ,654-7, ,518 5,040 8, , ,396-7, ,634 5,013 8, , ,103-11, ,540 4,919 8, , ,048-21, ,518 4,678 8, , ,271-28, ,719 4,296 7, , ,665-34, ,173 3,805 6, , ,308-42, ,385 3,178 5, , ,699-51, ,743 2,412 4, , ,411-46, ,567 1,699 2, , ,288-39, ,475 1,068 1,841 68, ,087-29, , , ,981-19, , , ,266-8, , , ,787-3,

32 30 SCE 06 Section IV page 17 lines 1-12 and page 18 lines 3-13 and page 19 Tables IV-6 and IV-7 SONGS 3 Qualified Trust Equity, Market Value Beginning Of Capital Gain Tax, Contribution Pay Cost - Including Tax Pay Cost Capital Gains Tax, Pay Cost Equity Rate of Return Dividend Rate of Return Dividends Earned (After- Tax) Price Appreciation Rate of Return Price Appreciation Unrealized Gain Realized Gain (Turnover) Capital Gains Tax on Realized Gain Realized Gain (After Tax) End Of 557, , ,779-53,714-41,546-12, % 1.97% 7, % 20, , ,959-29,497 79, , ,137-2, ,732-34,022-27,820-6, % 1.97% 6, % 18, ,863 80,390-21,763 58, , ,432 7, ,599-33,887-28,910-4, % 1.97% 6, % 16, ,020 60,200-16,297 43, , ,746-1, ,554-47,587-42,025-5, % 1.97% 5, % 15, ,049 43,925-11,891 32, , ,499 2, ,114-52,433-47,403-5, % 1.97% 5, % 13, ,070 31,841-8,620 23, , ,754 28, ,485-40,025-3, % 1.97% 4, % 13,000 97,445 24,040-6,508 17, , ,037 30, ,793-32,679-2, % 1.97% 4, % 13,097 78,693 19,413-5,256 14, , ,276 24, ,479-39,493-1, % 1.97% 4, % 13,065 65,011 16,038-4,342 11, , ,992 15, ,263-36,735-1, % 1.97% 4, % 12,651 55,979 13,810-3,739 10, , ,878 16, ,329-34,080-1, % 1.97% 4, % 12,402 49,957 12,325-3,336 8, , ,954 20, ,409-14, % 1.97% 4, % 12,724 48,533 11,973-3,241 8, , ,794 17, ,199-6, % 1.97% 5, % 13,528 49,306 12,164-3,293 8, , , ,938-6, % 1.97% 5, % 13,878 50,310 12,412-3,360 9, , ,462-7, ,868-7, % 1.97% 5, % 13,895 50,196 12,383-3,352 9, , ,470-8, ,326-8, % 1.97% 5, % 13,865 49,979 12,330-3,338 8, , ,424-8, ,356-9, % 1.97% 5, % 13,809 49,668 12,253-3,317 8, , ,396-7, ,446-9, % 1.97% 5, % 13,735 49,369 12,179-3,297 8, , ,361-7, ,615-10, % 1.97% 5, % 13,653 48,994 12,087-3,272 8, , ,561-8, ,477-9, % 1.97% 5, % 13,539 48,638 11,999-3,248 8, , ,036-7, ,494-8, % 1.97% 5, % 13,467 48,416 11,944-3,234 8, , ,575-12, ,388-8, % 1.97% 4, % 13,216 47,491 11,716-3,172 8, , ,823-22, ,364-8, % 1.97% 4, % 12,567 45,128 11,133-3,014 8, , ,266-30, ,699-9, % 1.97% 4, % 11,541 41,337 10,198-2,761 7, , ,804-37,424-1, ,981-7, % 1.97% 3, % 10,222 36,661 9,044-2,448 6, , ,924-46,431-1, ,104-6, % 1.97% 3, % 8,538 30,606 7,550-2,044 5, , ,754-55,339-1, ,277-5, % 1.97% 2, % 6,480 23,242 5,734-1,552 4, , ,919-49,970-1, ,194-6, % 1.97% 1, % 4,563 16,242 4,007-1,085 2, , ,523-42,901-1, ,867-3, % 1.97% 1, % 2,869 10,233 2, ,841 75, ,796-32, ,196-4, % 1.97% % 1,557 5,454 1, , ,089-21, ,209-4, % 1.97% % 625 2, , ,826-9, ,393-1, % 1.97% % , ,245-4, % 1.97% % % 1.97% % % 1.97% %

33 31 SCE 06 Section IV page 17 lines 1-12 and page 18 lines 3-13 and page 19 Tables IV-6 and IV-7 SONGS 3 Qualified Trust Bonds (LV Starting ) Beginning Of Contribution Contribution Pay Cost Bond Rate of Return Interest Earned (After Tax) End Of 941, , ,035-70, % 25, , ,519 2,491-14,082-50, % 24, , ,231-7,861-14,215-54, % 23, , ,153 1,060-14,260-78, % 21, , ,787-2,863-13,700-90, % 19, , ,861-28, , % 16, , ,894-30, , % 14, , ,040-24, , % 12, , ,595-15, , % 10, , ,651-16, , % 9, , ,496-20, , % 8, , ,004-17, , % 7, , , , % 7, , ,432 7, , % 7, , ,114 8, , % 8, , ,058 8, , % 8, , ,109 7, , % 8, , ,914 7, , % 8, , ,219 8, , % 9, , ,157 7, , % 9, , ,808 12, , % 9, , ,454 22, , % 10, , ,616 30, , % 11, , ,475 37, , % 12, , ,659 46, , % 13, , ,906 55, , % 15, , ,283 49, , % 16, , ,531 42, , % 17, , ,275 32, , % 17, , ,789 21, , % 15, , ,046 9, , % 12, , ,346 4, , % 9, , , , % 5, , , , % 1,977 0