(1) Each utility that owns a generating unit is required to establish a dismantlement accrual as approved by the Commission to accumulate a reserve to meet all expenses at the time of dismantlement. The purpose of the study required by subsection (3) is to obtain information to update cost estimates based on new developments, additional information, technological improvements, and forecasts; to evaluate alternative methodologies; and to revise the annual accrual needed to recover the costs. This rule does not apply to nuclear generating plants, which are addressed in Fl. Admin. Code R. 25-6.04365
    (2) For the purpose of this rule, the following definitions shall apply:
    (a) “”Contingency Costs.”” A specific provision for unforeseeable elements of cost within the defined project scope.
    (b) “”Dismantlement.”” The process of safely managing, removing, demolishing, disposing, or converting for reuse the materials and equipment that remain at the generating unit following its retirement from service and restoring the site to a marketable or useable condition.
    (c) “”Dismantlement Costs.”” The costs for the ultimate physical removal and disposal of plant and site restoration, minus any attendant gross salvage amount, upon final retirement of the site or unit from service.
    (3) Each utility shall file a dismantlement study for each generating site once every 4 years from the submission date of the previous study or pursuant to Commission order and within the time specified in the order. The study shall be site-specific unless a showing is made by the utility that a site-specific study is not possible. A utility may file a study sooner than 4 years. Each utility’s dismantlement study shall include:
    (a) A narrative describing each generating unit, including the in-service date and estimated retirement date.
    (b) A list of all entities owning an interest in each generating unit and the percentage of ownership by each entity.
    (c) The dismantlement study methodology.
    (d) A summary of the major assumptions used in the study.
    (e) The methodology selected to dismantle each generating unit and support for the selection.
    (f) The methodology and escalation rates used in converting the current estimated dismantlement costs to future estimated dismantlement costs and supporting documentation and analyses.
    (g) The total utility and jurisdictional dismantlement cost estimates in current dollars for each unit.
    (h) The total utility and jurisdictional dismantlement cost estimates in future dollars for each unit.
    (i) For each year, the estimated amount of dismantlement expenditures.
    (j) The projected date each generating unit will cease operations.
    (k) For each site, a comparison of the current approved annual dismantlement accruals with those proposed. Current accruals shall be identified as to the effective date and proposed accruals to the proposed effective date.
    (l) A summary and explanation of material differences between the current study and the utility’s last filed study including changes in methodology and assumptions.
    (m) Supporting schedules, analyses, and data, including the contingency allowance, used in developing the dismantlement cost estimates and annual accruals proposed by the utility. Supporting schedules shall include the inflation analysis.
    (4) The dismantlement annual accrual shall be calculated using the current cost estimates escalated to the expected dates of actual dismantlement. The future costs less amounts recovered to date shall then be discounted in a manner that accrues the costs over the remaining life span of the unit.
    (5) Dismantlement accruals shall be recorded monthly to assure that the costs for dismantlement have been provided for at the time the production unit or site ceases operations.
    (6) A utility shall not establish a new annual dismantlement accrual, revise its annual dismantlement accrual, or transfer a dismantlement reserve without prior Commission approval.
    (7) The annual dismantlement accrual shall be a fixed dollar amount and shall be based on a 4-year average of the accruals related to the years between the dismantlement study reviews.
    (8) The accumulated dismantlement reserve and accruals shall be maintained in a subaccount of Account 108 “”Accumulated Depreciation”” and separate from the accumulated depreciation reserve and expenses. Subsidiary records shall include sufficient detail to allow for separate site or unit reporting.
Rulemaking Authority 350.115, 350.127(2), 366.05(1) FS. Law Implemented 366.041, 366.05(1), 366.06(1) FS. History-New 12-30-03 Amended 4-28-16.