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There is concern about the potential cost to decommission nuclear power plants and the implications of competition within the electricity industry. This report determines if (1) there is adequate assurance that the Nuclear Regulatory Commission's (NRC) licensees are accumulating sufficient funds for decommissioning, and (2) NRC is adequately addressing the effects of electricity deregulation on the funds that will eventually be needed for decommissioning. This report reviews the adequacy of electric utilities' efforts to accumulate funds to eventually decommission their nuclear power plants after the plants have been permanently shut down.
The Nuclear Regulatory Comm. (NRC), which regulates reactors, requires their owners to reduce radioactive contamination after reactors permanently shut down. This process, called decommissioning, costs hundreds of millions of dollars per reactor. NRC requires licensees to provide reasonable assurance that they will have adequate funds to decommission, in part, by accumulating funds that are greater than or equal to NRC's decommissioning funding formula. This report: (1) describes how NRC ensures that licensees provide reasonable assurance of adequate decommissioning funds; and (2) identifies any improvements or weaknesses in NRC's oversight of this area. Charts and tables. This is a print on demand report.
"About 20 percent of U.S. electricity isgenerated by 104 nuclear reactors.NRC, which regulates reactors, requirestheir owners (licensees) to reduceradioactive contamination after reactorspermanently shut down. This process,called decommissioning, costshundreds of millions of dollars perreactor. NRC requires licensees toprovide reasonable assurance that theywill have adequate funds todecommission, in part, by accumulatingfunds that are greater than or equal toNRC's decommissioning fundingformula. GAO and NRC's OIG haveidentified concerns about NRC'soversight of decommissioning funds.GAO was asked by RepresentativeMarkey in his former capacity asChairman of the House Subcommitteeon Energy and Environment to (1)describe how NRC ensures thatlicensees provide reasonableassurance of adequatedecommissioning funds and (2) identifyany improvements or weaknesses inNRC's oversight of this area. GAOanalyzed NRC's formula and reviews oflicensee information and interviewedNRC officials, licensees, and others."