2016 Nuclear Decommissioning Funding Study

CALLAN
INSTITUTE
Study
2016 Nuclear Decommissioning

Funding Study
NDT Fund Balances, Annual Contributions,
and Decommissioning Cost Estimates
as of December 31, 2015
Table of Contents
Executive Summary
Methodology 4
Investor-Owned Utilities
Public Power Utilities
Fund Balances
Contributions
Cost Estimates
Funding Status
10
Pro Forma vs. Actual Contributions
12
Cost Comparisons
14
Escalation Rates
15
Asset Allocations
16
Investment Returns of Investor-Owned Utilities
17
Global Nuclear Power Generation
19
Endnotes 20
Certain information herein has been compiled by Callan and is based on information provided by a variety of sources believed to be reliable for which Callan
has not necessarily verified the accuracy or completeness of or updated. This report is for informational purposes only and should not be construed as legal or
tax advice on any matter. Any investment decision you make on the basis of this report is your sole responsibility. You should consult with legal and tax advisers
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Knowledge. Experience. Integrity.
2016 Nuclear Decommissioning Funding Study
Executive Summary
Callans annual Nuclear Decommissioning Funding Study offers key insights into the status of
99 Operating Nuclear Power Reactors in the U.S.
nuclear decommissioning funding in the U.S. to make peer comparisons more accurate and rel-
(Number of Reactors per State)
evant. The 2016 study covers 27 investor-owned and 27 public power utilities (excluding public
power owners with small shares)1 with an ownership interest in the 99 operating nuclear reactors
West of the Mississippi
and 10 of the non-operating reactors in the U.S. The number of utilities with an ownership interest
East of the Mississippi
declined steadily in the early- to mid-2000s, due primarily to mergers/acquisitions and the sale of
1
3
2
2
1
3
11
4
2
1
1
nuclear-generating facilities. However, in recent years the number of these utilities has remained
fairly steady.
What Is Nuclear Decommissioning?
2
4
After a nuclear power plant is closed, the facility must be decommissioned by safely
removing it from service and reducing residual radioactivity to a level that permits
release of the property and termination of the operating license. Decommissioning
involves removing spent fuel from the reactor vessel, dismantling and disposing of
radioactive components and materials such as the reactor and piping, and clean-
Source: Nuclear Energy Institute
ing up any radioactive or hazardous contamination that remains on site.
Investor-owned vs. Public Power
Decommissioning Funding and Reporting

The U.S. Nuclear Regulatory Commission (NRC) oversees the decommissioning of nuclear facilities
87%
NDT
Funds
and requires owners to set aside funds for the work. Approximately 70% of licensees are authorized
to accumulate decommissioning funds over the operating life of their plants. These ownersgener-
13%
ally traditional, rate-regulated utilitiesgradually build up money for decommissioning over the plants
operating life by collecting money from customers through rates which are then placed in a nuclear
decommissioning trust (NDT). The remaining licensees (approximately 30%) must provide financial
assurance through other methods, such as prepaid decommissioning funds and/or a surety method
85%
Cost
Estimates
or guarantee.
15%
1 Public power owners excluded: Dalton Utilities (Edwin Hatch 1 & 2 and Vogtle 1 & 2), Hudson Light and Power Department
(Seabrook 1), Seminole Electric Cooperative (Crystal River 3), Taunton Municipal Lighting Plant (Seabrook 1), and seven municipalities in Florida (Crystal River 3).
Executive Summary
Decommissioning
Costs Include:
Each year, owners must review the decommissioning cost requirements and the status of their decommissioning funding
for each reactor or share of a reactor they own. The findings must be reported to the NRC every two years, or annually
within five years of shutdown or once the plant ceases operation.
Labor
Labor, energy, and waste material transportation and disposal are the primary components of decommissioning costs.
Costs can be based on either the NRC minimum cost formula or a site-specific cost estimate calculated by an engineer-
Energy
ing firmas long as that amount is greater than the NRC cost figure. Site-specific engineering studies provide the most
Waste material
transportation & disposal
reliable decommissioning cost estimates. These studies often include costs beyond the NRCs scope of decommissioning, such as spent fuel management and site restoration (also known as green fielding), which together can run into the
hundreds of millions of dollars.
Key Findings
Decrease
in funds
liabilities widened in 2015
2.0%
Increase
in costs
1.5%
The gap between assets and
Cost Estimates of
Decommissioning
resulting in a decline in the

funding level from 69% in 2014
to 67% in 2015
$60
billion
$7
million
in total NDT funds
See pages 7, 9, and 11 for details.
2008: $55 billion
In 2015 NDT
contributions fell
See page 7 for details.
2015: $90 billion
(2008 v. 2015)
= $10 billion
es
X) 2, 3, 4
Methodology
MW
Nuclear
Lic Exp [Avg Yrs] Capacitiy
Decommissioning Cost Estimate ($mm)

Cost Est
2042-2044 [27]
252
$139
2027-2028 [12]
413
$359
2034 [18]
124
$200
Annual Contribution ($mm)

Pro Forma
This Nuclear
Funding
StudyCurrent
covers two
utilities:
Cost or Decommissioning
Fund Balance Fund
Shortfall
Pro types
Forma of
Amount
Amt/KW1. Investor-owned
$902/KW
($mm)
($mm)
Amount
Shortfall/Avg
utilities, which are publicly traded companies thatYrs
provide for-profit electric service, and
$5512. Public$227
$115
$113
$0
$4
power utilities, which are operated by local governments to provide not-for-profit electric service.
$868
$372
$205
$167
$0
$14
$1,616
$200
$105
$95
$0
$5
We list these companies in alphabetical order in two separate tables (pages 5 and 6). For each table, the first column
Decommissioning
($mm)$2
2034 [18]
62
$76Cost Estimate
$1,228 ($mm) $76
$42
$34Annual Contribution
$0
MW
Pro Forma
provides
the
range
of
the
years
of
license
expiration
(Lic
Exp)
for $34
each unit owned along with the average years to
2
2027-2028 [12]
$897
$869 Cost or $931
$514Fund Shortfall
$417 Current $1
o, TX)
Nuclear 1,032
Fund Balance
Pro Forma Amount
1
expiration
in brackets.
We collected
decommissioning
cost estimates,
NDT fund balances, and annual contribuLic Exp [Avg2043
Yrs] [28]
Capacitiy1,132Cost Est $584
Amt/KW $516$902/KW
($mm) $260
($mm) the
Amount $1Shortfall/Avg
Yrs
$1,021
$761
$27
y 3, 7
2042-2044 2043
[27] [27] 252
2027-2028 2045
[12] [29] 413
87
71
2034 2046
[18] [31] 124 206
2034
[18] [31] 62 224
Power 10
2045-2047
2
2027-2028
[12]
1,032
Elec Co 11
2030-2045 [19]
204
2043
[28] [28]1,132 834
2034-2049
eorgia
tive 8
$139 $63 $551 $720tions

$227
$115
$113
$0 company
$4 filings
from$78
sources
including
not limited
to):
10-K
$69 (but
$10
$0
$0 with the Securities and Exchange Commis$359 $46 $868 $647sion
$372
$205
$167
$0
$14
$64company decommissioning
$20
$44
$0with the NRC $2
(SEC),
report filings
in accordance with 10 CFR 50.75, and company
$200 $177$1,616 $859 $200 $186
$105 $110
$95 $75
$0 $0
$5 $2
annual reports. The NRC and Nuclear Energy Institutes websites were also valuable resources in collecting and
$76 $137$1,228 $613

$76
$42
$34 $71
$0 $0
$2 $2
verifying$202
information in$131
this report.
$897
$869
$931
$514
$417
$1
$34
$127
$624
$184
$100
$84
$1
$4
$584 $718 $516 $861 $1,021 $752
$260 $414
$761 $339
$1 $0
$27 $12
noted,
cost estimates
are in $0
2015 dollars and
on site-specific studies representing the total
$63 $633 $720 $827Unless
$78otherwise
$69 $567
$10 $123
$0based
$691
$0
$7
2043 2034
[27] [18] 87 766
(license termination,
fuel management,
restoration) to decommission the facility. In order to
2045
[29] [8] 71 1,893
$46$1,169 $647 $617cost $64
$20$1,430spent $44
$0 $0and site $2
2015-2034
$1,707
$277
$33
4,10, 14
2046 2043
[31] [28] 206 694
$177 $434 $859 $625make
$186
$110 $191 we have
$75 calculated
$0a pro
$2 $16
the
data
comparable,
forma
decommissioning
cost estimate, which is the higher of
Corp
$626
$435
$3
m)
Pro Forma224
10
10
2045-2047
[31]
$137
$613
$202
$131
$71
$0
$2
rNo
company cost
estimate of decommissioning
[28]
863
$613either the$778
$316
$462
$2 or $902/kilowatt
$17 (KW). We arrived at $902/KW by taking the
or 1 Fund Balance 2043
Fund Shortfall
Current Pro$529
Forma Amount
Co
2030-2045
[19]($mm)
$184$1,098
$100
$84
$1
$4
2034-2049
[27] 204 1,218
$1,068 $624Yrs
$877average
$427
$671
$5
$25
W 11
($mm)
Amount $127
Shortfall/Avg
cost per KW reported for all investor-owned utilities. Trust fund balances represent liquidation values and
aive
2034-2049
[28] $113
$752any
$414
$339 $52
$0 $0
$12
2038-2040
[23] 834 219 $0 $718 $122 $861
$197internal
$146 dedicated
7 15
$115
$4 $559include
reserves
to decommissioning
unless$2
otherwise noted. Contributions include those to
4,10, 14
10
6
ncy
0
1
2034 2033
[18] $167
$827$1,849 $691 $884
$567 $373
$123 $511
$0 $5
$7 $29
[18] 766 478 $0 $633 $884 $14
$205
both external trust funds and any internal reserves dedicated to decommissioning.
2015-2034
[8] [27]
1,893 60 $0 $1,169 $53 $617
$277 $13
$0 $0
$33 $0
$105
$95
$5 $882 $1,707 $54 $1,430 $41
2043
2043
[28]
694
$434
$625
$626
$191
$435
$3
$16 $7
$42
$34
2043 [28]
288 $0
$176 $2 $612
$260
$65
$195
$1
Pro
forma
fund
shortfall
is
the
difference
between
the
pro
forma
cost estimate of decommissioning and the fund
2043 [28] $417
$613$2,078 $778 $79
$316 $84
$462 -$5
$2 $2
$17 N/A
$514
[0] 863 38 $1 $529 $79 $34
Pro forma
contribution
is the$304
pro forma
2034-2049
[27] $761
$877 $931balance.
$1,098 $641
$427
$671
$5 fund
$25divided
2045-2047
[31]1,218 688 $1 $1,068 $641 $27
$337
$0 shortfall
$10 by the average years until license expiration
1
$260
172038-2040 [23]
219
$122
$559
$197
$146
$52
$0
$2
license expiration
uthority
2042 [27]
323 $0
$415 $0 $1,285as represented
$415 in brackets
$210 under the$205
$2 column. The
$8 average years until license expiration weights
8
$69
$10
2033
[18]
478
$884
$1,849
$884
$373
$511
$5
$29
license by its
owned by
$20
r4Assoc
2024 $44
[9]
119 $0
$131 $2 $1,101each units
$131
$57percent of the
$74total megawatts
$3
$8 that particular utility, and takes into account
Pro
Forma
10
2043
[27]
60
$53
$882
$54
$41
$13
$0
$0
6
$110
$75
$0
$2
granted
as of December
31, 2015. $1
thority
2045-2047 [31]
233
$142
$611license extensions
$210
$173 by the NRC$37
$0
und Balance Fund
Shortfall
Current Pro Forma Amount
2043
[28] [21]
$65$1,536
$195$4,516
$1 $0
$7 $212
2
$131
$71 288 6,711 $0 $176$3,542 $612
$2 $528 $260$6,052
2033-2041
($mm)
($mm)
Amount
Shortfall/Avg Yrs
[0] $84 38
$79
$2,078
$79
$84
-$5
$2
N/A
4 Power
$100 Totals
$4 $704
lic
19,232 $1 $13,541.52
$18,117
$8,038
$10,079
$27
$484
$115 Utilities
$113
$0
$4
2045-2047
[31]
688
$641
$931
$641
$337
$304
$0
$10
2 $205 $414
$339 $0
$0
$12
$167
$14
17
2042 [27] $123 323
$415
$210
$205
$2
$8
ty
1 $105 $567
$0 $415 $5 $1,285
$7
$95
$0
1
Non-operating
units
are
included
in
all
figures
except
the
range
of
license
oc
2024 [9] $277 119
$131
$57
$74
$3
$8 expiration years.
7
$0 $131 $2 $1,101
$33
$42 $1,430
$34
$0
y610
2045-2047
[31]
233
$611
$210
$173
$37
$0
$1
$191
$3 $142
$16
$417 $435 $1
$34
nce.$514
Integrity.
6
2033-2041
[21] $462
6,711
$528
$6,052
$1,536
$4,516
$0
$212
8
$316
$2 $3,542
$17
$260
$761
$1
$27
Knowledge. Experience.
Integrity.
4
8
$427
$5
$25
wer Utilities
Totals $10 $671
19,232
$704
$18,117
$8,038
$10,079
$27
$484
$69
$0 $13,541.52 $0
7
$146
$52
$0
$2
$20
$44
$0
$2
Company
Lic Exp [Avg Yrs]
MW
Nuclear
Capacity

Cost Est
Amt/KW
Cost or
$902/KW
Pro Forma
Fund Balance Fund Shortfall
($mm)
($mm)

Current
Amount
Pro Forma Amount

Shortfall/Avg Yrs
Ameren Corporation 1, 2, 3
American Electric Power Company
Constellation Energy Nuclear Group
Dominion Resources 2, 5, 6
DTE Energy Company
Duke Energy Corporation
El Paso Electric Company
Energy Future Holdings Corporation 2
Entergy Corporation 9
2013-2038
[11]
10
Exelon Corporation 2, 10
2022-2049
[18]
11
FirstEnergy Corporation 11
2026-2047
[17]
12
Great Plains Energy 1
2045
[29]
13
Green Mountain Power Corporation
2045
[30]
14
MidAmerican Energy Company 2, 12
2032
[17]
15
NextEra Energy 2, 13
2030-2043
[18]
6,031
16
NRG Energy 2, 3, 14
2027-2028
[12]
1,136
17
Pacific Gas and Electric Company 15
2024-2025
[9]
2,363
18
Pinnacle West Capital Corporation 8
2045-2047
[31]
1,145
19
Public Service Company of New Mexico
2045-2047
[31]
401
20
Public Service Enterprise Group
2033-2046
[24]
21
San Diego Gas and Electric Company 16
[0]
22
SCANA Corporation
2042
[27]
23
Southern California Edison 16
2045-2047
[8]
24
Southern Company
2034-2049
[25]
25
Talen Energy Corporation 2, 3, 18
2042-2044
[27]
26
Westar Energy 1
2045
[29]
552
$360
$651
$498
$184
$314
$3
$11
27
Xcel Energy 2
2030-2034
[17]
1,594
$3,139
$1,969
$3,139
$1,724
$1,415
$21
$83
84,631
$76,318
$902
$84,464
$52,114
$32,350
$335
$1,865
2, 4
2044
[29]
1,190
$865
$727
$1,073
$556
$517
$7
$18
2034-2037
[20]
2,069
$1,961
$948
$1,961
$1,984
-$23
$9
-$1
2029-2046
[20]
3,873
$3,677
$949
$3,677
$2,036
$1,641
$0
$80
2032-2045
[20]
6,575
$4,298
$654
$5,929
$4,183
$1,746
$2
$87
2025
[9]
1,085
$1,700
$1,567
$1,700
$1,211
$489
$13
$53
2030-2046
[20]
9,515
$8,130
$854
$8,580
$5,475
$3,105
$39
$154
2045-2047
[31]
622
$381
$612
$561
$232
$329
$5
$11
2030-2033
[16]
2,400
$1,798
$749
$2,164
$918
$1,246
$17
$80
8,132
$6,899
$848
$7,333
$4,620
$2,713
$39
$251
17,243
$13,100
$760
$15,549
$8,255
$7,294
$23
$401
4,726
$5,434
$1,150
$5,434
$2,272
$3,162
$15
$184
552
$360
$651
$498
$191
$307
$3
$10
21
$12
$590
$19
$9
$10
$0
$0
455
$326
$716
$410
$429
-$19
$2
-$1
$4,797
$795
$5,439
$5,039
$400
$0
$22
$986
$868
$1,024
$561
$463
$1
$38
$3,566
$1,509
$3,566
$2,503
$1,063
$96
$118
$701
$612
$1,033
$688
$345
$17
$11
$271
$676
$362
$246
$115
$5
$4
3,635
$3,436
$945
$3,436
$1,754
$1,682
$0
$71
430
$917
$2,133
$917
$848
$69
$8
N/A
648
$831
$1,283
$831
$115
$716
$3
$27
2,303
$3,978
$1,727
$3,978
$3,659
$319
$0
$39
3,667
$3,148
$858
$3,307
$1,471
$1,836
$6
$73
2,268
$1,249
$551
$2,045
$951
$1,094
$0
$40
1, 2, 3
7
8
2, 6
1, 2
2, 17
Investor-Owned Utilities Totals

See page 20 for endnotes.
Company
Lic Exp [Avg Yrs]
MW
Nuclear
Capacity

Cost Est
Amt/KW
Cost or
$902/KW
Pro Forma
Fund Balance Fund Shortfall
($mm)
($mm)

Current
Amount
Pro Forma Amount

Shortfall/Avg Yrs
Allegheny Electric Cooperative 1
2042-2044 [27]
252
$139
$551
$227
$115
$113
$0
$4
Austin Energy (City of Austin, TX) 2, 3, 4
2027-2028 [12]
413
$359
$868
$372
$205
$167
$0
$14
Central Iowa Power Cooperative
2034 [18]
124
$200
$1,616
$200
$105
$95
$0
$5
Corn Belt Power Cooperative 3
2034 [18]
62
$76
$1,228
$76
$42
$34
$0
$2
CPS Energy (City of San Antonio, TX)
2027-2028 [12]
1,032
$897
$869
$931
$514
$417
$1
$34
Energy Northwest
2043 [28]
1,132
$584
$516
$1,021
$260
$761
$1
$27
Florida Municipal Power Agency 3, 7
2043 [27]
87
$63
$720
$78
$69
$10
$0
$0
Kansas Electric Power Cooperative
Long Island Power Authority 9
4, 6
10
Los Angeles Dept of Water and Power
10
11
Massachusetts Muni Wholesale Elec Co
12
Municipal Electric Authority of Georgia
13
Nebraska Public Power District 12
14
New York Power Authority 13
15
N Carolina Electric Membership Corp 4,10, 14
16
N Carolina Muni Power Agency No 1
17
Oglethorpe Power Corporation
18
Old Dominion Electric Cooperative
19
Omaha Public Power District
20
11
2045 [29]
71
$46
$647
$64
$20
$44
$0
$2
2046 [31]
206
$177
$859
$186
$110
$75
$0
$2
2045-2047 [31]
224
$137
$613
$202
$131
$71
$0
$2
2030-2045 [19]
204
$127
$624
$184
$100
$84
$1
$4
2034-2049 [28]
834
$718
$861
$752
$414
$339
$0
$12
2034 [18]
766
$633
$827
$691
$567
$123
$0
$7
[8]
1,893
$1,169
$617
$1,707
$1,430
$277
$0
$33
2043 [28]
694
$434
$625
$626
$191
$435
$3
$16
2015-2034
2043 [28]
863
$529
$613
$778
$316
$462
$2
$17
2034-2049 [27]
1,218
$1,068
$877
$1,098
$427
$671
$5
$25
2038-2040 [23]
219
$122
$559
$197
$146
$52
$0
$2
2033 [18]
478
$884
$1,849
$884
$373
$511
$5
$29
Orlando Utilities Commission
2043 [27]
60
$53
$882
$54
$41
$13
$0
$0
21
Piedmont Municipal Power Agency 10
2043 [28]
288
$176
$612
$260
$65
$195
$1
$7
22
Riverside Public Utilities 8, 16
[0]
38
$79
$2,078
$79
$84
-$5
$2
N/A
23
Salt River Project 8
2045-2047 [31]
688
$641
$931
$641
$337
$304
$0
$10
24
South Carolina Public Service Authority
2042 [27]
323
$415
$1,285
$415
$210
$205
$2
$8
25
South Mississippi Electric Power Assoc
2024
[9]
119
$131
$1,101
$131
$57
$74
$3
$8
26
Southern Calif. Public Power Authority 10
2045-2047 [31]
233
$142
$611
$210
$173
$37
$0
$1
27
Tennessee Valley Authority
2033-2041 [21]
6,711
$3,542
$528
$6,052
$1,536
$4,516
$0
$212
19,232
$13,542
$704
$18,117
$8,038
$10,079
$27
$484
10
15
17
18
Public Power Utilities Totals

See page 21 for endnotes.
Fund Balances
NDT fund balances have risen substantially since a
sharp decline in 2008. The NDT funds covered in this
NDT Fund Balances
study totaled over $60 billion in 2015. The $0.9 billion

(1.5%) decrease from a year earlier can be attributed
Investor-Owned
to a combination of essentially flat capital market pervalues, and outflows to cover decommissioning costs
$60,000
for some non-operating units. Investor-owned funds

have accounted for approximately 87% of total NDT
Did You Know?
$40,000
$30,000
$20,000
2015 U.S. Electricity Generation by Source
33%
Coal
$50,000
($ millions)
power funds accounting for the remaining 13%.
Total
$70,000
formance in 2015, a greater use of liquidation asset
fund balances over the past nine years, with public
Public Power
$10,000
33%
20%
Natural Gas
Nuclear
$0
2007
2008
2009
2010
2011
2012
2013
2014
2015
Investor-Owned ($m) 38,012
29,960
35,659
39,091
40,865
44,553
50,475
52,798
52,114
5,778
4,926
5,462
6,107
6,449
7,010
7,551
8,242
8,038
Total ($m) 43,790
34,886
41,121
45,198
47,314
51,563
58,025
61,040
60,152
Public Power ($m)

7%
6%
Other
Renewables
Hydroelectric
1%
1%
Petroleum
Liquids
Other
Energy
Source: U.S. Energy Information Administration
Contributions
After rising in 2014, total contributions fell almost
$7 million in 2015 despite a $1.6 million increase in
Annual Contributions to NDT Funds
public power contributions. In 2015, investor-owned

contributions were 75% of their 2007 level while
Investor-Owned
public power contributions were just 25% of their
Public Power
Total
$600
2007 level.
$500
($ millions)
$400
$300
$200
$100
Did You Know?

The top five U.S. states in terms of number of
$0
2007
operating nuclear power reactors:

1. Illinois (11)
2. Pennsylvania (9)
3. South Carolina (7)
2008
2009
2010
2011
2012
2013
2014
2015
Investor-Owned ($m)
449
461
407
429
424
388
315
344
335
Public Power ($m)
109
101
46
57
20
18
18
25
27
Total ($m)
558
562
453
486
444
406
333
369
362
4. New York (6)

5. Alabama and North Carolina (tie 5 each)
Cost Estimates
Total decommissioning cost estimates have risen
since a low of $55 billion in 2008. Decommission-
Cost Estimates of Decommissioning in Current Dollars
ing cost estimates totaled almost $90 billion in 2015.

The $1.8 billion (2%) increase from 2014 ($88 bil-
Investor-Owned
lion) is largely due to the use of updated site-specific
Public Power
Total
$100,000
cost studies by several owners.
$80,000
Similar to NDT fund balances, investor-owned costs

have accounted for over four-fifths of total costs over
ing for less than one-fifth of the total cost.
($ millions)
the past nine years, with public power costs account-
$60,000
$40,000
$20,000
Did You Know?
$0
2007
2008
Investor-Owned ($m)
49,170
Public Power ($m)
9,484
Total ($m)
58,654
Of the U.S. operating nuclear power plants:

Largest: Palo Verde in Arizona
Smallest: Fort Calhoun in Nebraska
Newest: Watts Bar in Tennessee
2012
2009
2010
2011
2013
2014
2015
45,142
50,831
57,657
59,346
64,028
66,558
74,442
76,318
9,959
10,620
11,695
11,163
12,146
12,831
13,647
13,542
55,101
61,451
69,352
70,509
76,174
79,389
88,089
89,860
Oldest: Oyster Creek in New Jersey

Funding Status
Investor-owned assets have lagged behind costs
by approximately $11$24 billion over the past nine
Decommissioning Funding Status(Assets Less Costs)
years. Public power assets have lagged behind costs

by approximately $3$6 billion over the same period.
Investor-Owned
Public Power
Total
$0
The total deficit reached a nine-year high of almost

$30 billion in 2015. The increase in the deficit is partly
-$5,000
due to a greater percentage of utilities reporting liquidation fund values and updated site-specific esti-
-$10,000
($ millions)
mates for several owners.
-$15,000
-$20,000
-$25,000
-$30,000
2007
2008
2009
2010
2011
2012
2013
2014
2015
Investor-Owned ($m) -11,158 -15,182 -15,172 -18,566 -18,481 -19,475 -16,083 -21,644 -24,204
Public Power ($m)
-3,706
-5,033
-5,158
-5,588
-4,714
-5,136
-5,281
-5,404
-5,503
Total ($m) -14,864 -20,215 -20,330 -24,154 -23,195 -24,611 -21,363 -27,048 -29,708
10
Funding Status
Assets as a percentage of costs averaged approximately 71% for investor-owned utilities over the past
Decommissioning Funding Status (Assets as Percentage of Costs)
nine years versus just 56% for public power utilities.

Total funding stood at approximately 67% in 2015, a
decline from the previous year (69%). The decline in
the funding status is partly due to a greater percent-
Investor-Owned
Public Power
Total
80%
age of utilities reporting liquidation fund values and

updated site-specific estimates for several owners.
70%
Did You Know?
60%
There are currently 99 nuclear power reactors operating in the U.S. in 30 states.
50%
65 are pressurized water reactors

34 are boiling water reactors
4 reactors are currently under construction
(Virgil C. Summer 2 & 3 and Vogtle 3 & 4)
Watts Bar 2 was issued an operating license
by the NRC in October 2015 and is expected
to begin commercial operation in the summer
of 2016. This is the first nuclear power plant
to come online since Watts Bar 1 began
operation in 1996.
40%
2007
2008
2009
2010
2011
2012
2013
2014
2015
Investor-Owned ($m) 77.3%
66.4%
70.2%
67.8%
68.9%
69.6%
75.8%
70.9%
68.3%
Public Power ($m) 60.9%
49.5%
51.4%
52.2%
57.8%
57.7%
58.8%
60.4%
59.4%
Total ($m) 74.7%
63.3%
66.9%
65.2%
67.1%
67.7%
73.1%
69.3%
66.9%
11
Pro Forma vs. Actual Contributions: Investor-Owned Utilities

Actual investor-owned contributions outpaced the
pro forma estimate in the late 1990s before fall-
ing behind in 2000. In 2015, actual contributions

Pro Forma
1,865
1,748
1,314
1,160
1,225
1,035
1,003
901
315
388
424
429
407
$400
461
564
$800
449
703
892
889
1,156
1,430
1,490
1,137
1,281
1,123
1,015
1,244
983
1,051
$1,200
1,056
1,252
($ millions)
$1,600
1,615
in the 18-year period.
875
pro forma estimate in 2015, the lowest percentage
1,551
$2,000
335
Actual contributions were less than one-fifth of the
Actual
339
were $1.5 billion lower than the pro forma estimate.
$0
1999
2001
2003
2005
2007
2009
2011
2013
2015
In order to make the data among companies more comparable, we have calculated a pro forma decommissioning cost estimate, which
is the higher of either the company cost estimate of decommissioning or the product of the company KW times the average cost per KW
reported for all investor-owned utilities. In 2015, this average cost was $902/KW. Pro forma contribution is the pro forma fund shortfall (the
difference between the pro forma cost estimate of decommissioning and the fund balance) divided by the average years until license expiration. The average years until license expiration weights each units license by its percent of the total megawatts owned by that particular
utility and takes into account license extensions granted by the NRC as of the end of each year listed.
12
Pro Forma vs. Actual Contributions: Public Power Utilities

Actual public power contributions have lagged well
behind the pro forma estimate from 1998 to 2015.
While pro forma contributions grew from $339 milPro Forma
543
$600
426
369
406
386
321
376
405
401
402
382
383
348
2001
2003
2005
2007
2009
2011
2013
27
57
101
109
100
87
84
46
1999
Source: Data from tables on pages 5-6.
324
345
$0
18
Investor-owned 81%
19
Public power 19%
95
$100
96
Public vs. Investor-Owned Generation Capacity
111
$200
112
Did You Know?
145
$300
145
($ millions)
$400
339
$500
to less than 6% in 2015.
18
mate were at a high of 43% in 1998, but have fallen
465
contributions as a percentage of the pro forma esti-
25
tions fell from $145 million to just $27 million. Actual
Actual
484
lion in 1998 to $484 million in 2015, actual contribu-
2015
In order to make the data among companies more comparable, we have calculated a pro forma decommissioning cost estimate, which
is the higher of either the company cost estimate of decommissioning or the product of the company KW times the average cost per KW
reported for all investor-owned utilities. In 2015, this average cost was $902/KW. Pro forma contribution is the pro forma fund shortfall (the
difference between the pro forma cost estimate of decommissioning and the fund balance) divided by the average years until license expiration. The average years until license expiration weights each units license by its percent of the total megawatts owned by that particular
utility and takes into account license extensions granted by the NRC as of the end of each year listed.
13
Cost Comparisons
Last year we gathered both NRC and site-specific
total cost estimates where possible in order to cap-
Decommissioning Cost Comparisons (Site-Specific Total/NRC Minimum)
formula in 2014, a difference of $18.5 billion. The

1.5 times the NRC minimum formula amount for all
nially to coincide with the NRCs

filing schedule.
100%
plants regardless of ownership. Assuming license ter-
Bars depict the full range of cost
0%
mination costs (the NRC portion of decommissioning)
All
Public
Power
75th Percentile
195%
181%
211%
Median
153%
152%
155%
25th Percentile
137%
140%
136%
estimates as a percentage of the
Average
166%
161%
176%
NRC minimum formula amounts.
roughly in line with the NRC formula amounts, then
$18.5 billion in decommissioning costs.
results in average cost comparison figures that are
58
16
approximately 10%20% greater in absolute terms

75th percentiles for public power cost comparisons
35
15
is much greater than that of the investor-owned cost
20
estimates, though this could be the result of a much

smaller public power sample size.
shading represents the 25th to

75th percentiles. The percentages
to the left show site-specific cost
estimates
Dataset Breakdown
96
Total
25
Public Power
The distributions are positively skewed, which
than the medians. The range between the 25th and
NRC minimum) while the darker
The data set includes 2014 cost
spent fuel management and site restoration costs are

what account for mostif not allof the additional
comparisons (site-specific total/
InvestorOwned
represent approximately 6070% of total site-specific
termination portions of the site-specific estimates are
This page will be updated bien-
200%
median site-specific total cost estimate was just over
Taking the assumption one step further, if the license
Notes
300%
billion versus $34.5 billion under the NRC minimum
with the site-specific estimates for license termination.
Public Power
400%
Site-specific cost estimates total approximately $53.0
costs, the NRC formula amounts are roughly in line
Investor-Owned
Total
ture the relative magnitude of the two figures.
Utilities
71
for
58
plantsnot
necessarily distinct or whollyownedowned by 35 utilities.
Investor-Owned
42
Plants*
Reactors*
*Not necessarily distinct or wholly-owned plants/reactors.
14
Escalation Rates
This year we continued to gather escalation rates,
which the utilities use to forecast future decommission-
Decommissioning Escalation Rates
ing expenditures given current dollar cost estimates.

The escalation rates shown to the right are a blend of
Total
Investor-Owned
Public Power
6%
6%
5%
5%
escalation rates for 58 plantsnot necessarily distinct
4%
4%
or wholly-ownedowned by 32 utilities.
3%
3%
2%
2%
The median escalation rate for all plants is 3.00%
1%
1%
with an average of 3.25%. Public power plant esca-
0%
0%
escalation rates specific to the different cost categories

such as labor, energy, and burial. The data set includes
lation rates tend to be approximately 50150 basis

points above those of investor-owned plants. The
Escalation Rates by Plant*
median public power plant rate is 4.00% and average

is 3.63%, contrasted with the median investor-owned
All
Escalation Rates by Owner

InvestorOwned
Public
Power
All
InvestorOwned
Public
Power
75th Percentile
4.00%
3.43%
4.00%
4.00%
3.57%
4.00%
Median
3.00%
2.60%
4.00%
3.28%
3.15%
4.00%
From an owner perspective, we see the same trend
25th Percentile
2.50%
2.50%
2.79%
2.51%
2.51%
2.72%
of greater escalation rates for public power. The
Average
3.25%
3.01%
3.63%
3.46%
3.27%
3.64%
median public power utility rate is 4.00% and the
Count
58
36
22
32
15
17
plant escalation rate of 2.60% and average of 3.01%.
average is 3.64%, versus a median investor-owned

utility escalation rate of 3.15% and average of 3.27%.
The median escalation rate for all owners is 3.28%
with an average of 3.46%.
*Not necessarily distinct or wholly-owned plants.

Note: Bars depict the full range of cost comparisons (site-specific total/NRC minimum) while the darker shading represents the 25th to
75th percentiles.
15
Asset Allocations
We gathered NDT asset allocation information for
all owners this year. Unfortunately, the public power
Investor-Owned Utilities Asset Allocations (as of 12/31/2015)
dataset is too limited to be meaningful so only investor-owned utility asset allocation data is displayed
here. The dataset represents 25 of the 27 investorowned utilities.
All 25 NDTs are invested in equity and fixed income
securities with a median allocation of approximately
60% equity and 40% fixed income.
80%
60%
40%
20%
0%
Three-fifths of the owners reported a cash equivalent

allocation which tended to range in the low single digits.
Four of the utilities reported allocations to real estate,
private equity, and/or hedge funds with almost a quarter
indicating an other allocation. The other allocations
could represent cash, alternatives, or other securities.
Equity
Fixed
75th Percentile
62%
43%
3%
20%
4%
Median
56%
40%
2%
9%
2%
25th Percentile
50%
34%
1%
2%
2%
Percent Invested
100%
100%
60%
16%
24%
25
25
Count
Cash
15
Alternatives
Other
Note: Bars depict the full range of cost comparisons (site-specific total/NRC minimum) while the darker shading represents the
25th to 75th percentiles.
16
Investment Returns of Investor-Owned Utilities

We show the range of returns for 23 of the 27 investorowned utilities for periods ended December 31, 2015.
Investor-Owned Utilities Returns (Periods ended 12/31/2015)
Investor-owned utilities with nuclear power reactors

outperformed the S&P 500 Utilities Index over the
40%
past quarter, 1-, 3-, and 5-year periods, but underperformed the broad market S&P 500 Index. Over the
0%
past 10 years, investor-owned utilities outperformed

both the S&P 500 Utilities and S&P 500 Indices.
-40%
-80%
Last
Quarter
Last
Year
Last 3
Years
Last 5
Years
Last 10
Years
75th Percentile
6.0
0.7
14.7
15.0
10.0
Median
2.1
-2.4
12.9
12.1
7.8
25th Percentile
-3.0
-13.2
7.9
6.3
4.1
S&P 500
7.0
1.4
15.1
12.6
7.3
S&P 500 Utilities
1.1
-4.8
11.6
11.0
7.4
23
23
23
Count
23
23
Note: Bars depict the full range of cost comparisons (site-specific total/NRC minimum) while the darker shading represents the
25th to 75th percentiles.
17
Investment Returns of Investor-Owned Utilities (Continued)

This chart shows the 10-year return and standard
deviation, ended Dec. 31, 2015, for the 23 investor-
Annualized Return vs. Standard Deviation (10 years ended 12/31/2015)
owned utilities along with the S&P 500 Utilities and

S&P 500 Indices. A majority of investor-owned utili-
ties had a more volatile (greater standard deviation)

20%
return pattern than both the S&P 500 Utilities and

S&P 500 Indices over the past 10 years.
15%
accounts for varying degrees of the utilities overall

businesses.
Annualized Return
It is important to note that nuclear power generation
10%
5%
S&P 500
Utilities
S&P 500
0%
-5%
-10%
10%
15%
20%
25%
30%
35%
Standard Deviation
18
Global Nuclear Power Generation

Top 10 Nuclear Generating Countries in 2015
Top 10 Countries by Nuclear

Power as a Percent of Total
Electricity Generation

Country
Share of
Total Electricity
France 76.3%
Ukraine 56.5%
Slovakia 55.9%
Hungary 52.7%
Slovenia 38.0%
Belgium 37.5%
Armenia 34.5%
Sweden 34.3%
Finland 33.7%
Switzerland 33.5%
#1 United States
#4 China
#2 France
#5 South Korea
#7 Germany
#9 United Kingdom
#3 Russia
#6 Canada
#8 Ukraine
#10 Spain
798.0 bn kWh
19.5% total electricity
99 operating units
419.0 bn kWh
58 operating units
182.8 bn kWh
35 operating units
161.2 bn kWh
33 operating units
157.2 bn kWh
25 operating units
95.6 bn kWh
19 operating units
86.8 bn kWh
8 operating units
82.4 bn kWh
15 operating units
63.9 bn kWh
15 operating units
54.8 bn kWh
7 operating units
19
Endnotes
Endnotes from page 5:
Cost estimate in 2014 dollars.
Fair market value of the fund balance.
2014 contribution.
Cost estimate in 2012 dollars and represents license termination costs only.
Includes 641 MW Millstone Unit 1 and 566 MW Kewaunee which have been shut down permanently. Millstone Unit 1 is assumed to be decommissioned upon the license expiration of Millstone Unit 2 in July 2035
while Kewaunee is transitioning to SAFSTOR.
Total cost less certain spent fuel costs expected to be recovered from the Department of Energy.
Includes 860 MW Crystal River Unit 3, which has been shut down permanently and is transitioning to SAFSTOR. Cost estimate in 2013 and 2014 dollars.
Includes 620 MW Vermont Yankee, which has been shut down permanently and is in SAFSTOR. Excludes
Indian Point Unit 3 and James A. Fitzpatrick (trust funds retained by New York Power Authority). Combination of site-specific total cost estimates and NRC minimums. Cost estimates for all but two units (2013 and
2014 dollars) are in 2015 dollars.
10
Includes 210 MW Dresden Unit 1 and 115 MW Peach Bottom Unit 1 which have been shut down permanently. Dresden Unit 1 is assumed to be decommissionined upon the license expiration of Dresden Unit 2
in December 2029 and Peach Bottom Unit 1 is assumed to be decommissioned upon the license expiration
of Peach Bottom Unit 3 in July 2034. Combination of site-specific total cost estimates and NRC minimums
in 2014 dollars.
11
Includes 786 MW Three Mile Island Unit 2, which has been shut down permanently and is assumed to be
decommissioned upon the license expiration of Three Mile Island Unit 1 in April 2034. Three Mile Island Unit
1 is owned and operated by Exelon.
12
NRC mininum cost estimate.
13
Combination of site-specific total cost estimates in 2010 dollars and NRC minimums in 2014 dollars.
14
15
Includes 63 MW Humboldt Bay Unit 3, which has been shut down permanently and is in decommissioning.
16
Includes 1,070 MW San Onofre Unit 2 and 1,080 MW San Onofre Unit 3 which shut down permanently in
2013 and are decommissioning.
17
18
NRC mininum cost estimate in 2014 dollars.

20
Endnotes
Endnotes from page 6:
Fund balance as of September 30, 2015.
2014 contribution.
Fund balance as of June 30, 2015.
Cost estimate in 2012 dollars and represents license termination costs only.
10
11
Cost estimate in 2010 and 2015 dollars.
12
13
Sold its interest in Indian Point Unit 3 and James A. Fitzpatrick to Entergy but retained the NDT funds until
license expiration.
14
Fund balance as of December 31, 2014.
15
Total cost less certain spent fuel costs expected to be recovered from the Department of Energy.
16
Includes 1,070 MW San Onofre Unit 2 and 1,080 MW San Onofre Unit 3 which shut down permanently in
2013 and are decommissioning.
17
18
NRC mininum cost estimate.
21
About the Author
Julia A. Moriarty, CFA, is a Senior Vice President and a consultant in the Capital Markets Research
group. She is responsible for assisting plan sponsor clients with their strategic planning, conducting
asset/liability studies, developing optimal investment manager structures, and providing custom research on a variety of investment topics. Julia joined Callan in 1990 as an analyst in the Client Report
Services group, working on the production of comprehensive performance measurement reports and
the implementation and testing of new products. Prior to joining the Capital Markets Research group,
she was a Software Solutions Consultant in the Client Software Department. Julia is a shareholder
of the firm.
Julia earned a BS in Finance from California Polytechnic State University at San Luis Obispo and an
MBA in Finance from the University of California at Berkeleys Haas School of Business. She earned
the right to use the Chartered Financial Analyst designation and is a member of the CFA Society of
San Francisco and CFA Institute.
22
About Callan
Callan was founded as an employee-owned investment consulting firm in 1973. Ever since, we have empowered institutional
clients with creative, customized investment solutions that are uniquely backed by proprietary research, exclusive data,
ongoing education and decision support. Today, Callan advises on $2 trillion in total assets, which makes us among the largest independently owned investment consulting firms in the U.S. We use a client-focused consulting model to serve public
and private pension plan sponsors, endowments, foundations, operating funds, smaller investment consulting firms, investment managers, and financial intermediaries. For more information, please visit www.callan.com.
About the Callan Institute
The Callan Institute, established in 1980, is a source of continuing education for those in the institutional investment
community. The Institute conducts conferences and workshops and provides published research, surveys, and newsletters. The Institute strives to present the most timely and relevant research and education available so our clients and
our associates stay abreast of important trends in the investments industry.
For more information about this report, please contact:
Your Callan consultant or Julia Moriarty at moriarty@callan.com
2015 Callan Associates Inc.
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