Summary of Excess Liability Forecast

Transcription

1 Application No.: Exhibit No.: Witnesses: A M. Marelli (U 338-E) Summary of Excess Liability Forecast Before the Public Utilities Commission of the State of California 1 1

2 Leading the Way in Electricity SM Summary of s XS Liability Forecast (in millions) Application (Nov. 2013) Removal of SONGS/ 4C (Apr. 7) 4.98 Participant Share (not in ) SONGS Allocation - Operational (2,485/18,385) ( X + Y) Y 1.36 X , FN# 1 SONGS Allocation Shutdown (400/13,701) Removed from WP- -08 Vol.1 pt. 2R discovered late in assembling April filing that entire 4.98M had inadvertently been removed from RO Model (which assumes SONGS operational) - Included footnote in testimony of -14 and Insurance workpaper disclosing the error and commitment to correct forecast via errata. - Updated SONGS allocation calculated by M *(400/13,701) Forecast w/ RO Error -8, Vol. 1 Pt.2 R testimony RO Model on Apr. 7 Apr. 7 Forecast WP -8, Vol. 1 Pt.2 R -DRA-281-DFB, Q. 1A (Apr. 2014) XS Liab- Corporate (F515342) XS Liab- SONGS (F515331) XS Liab- Eldorado (F515327) Participant Share (not part of ) 2

3 Leading the Way in Electricity SM Summary of s XS Liability Forecast (in millions) Application (Nov. 2013) Final Forecast Including Impact of Participants Share (Nov. 2014) 4.98 Participant Share (not in ) SONGS Allocation - Operational (2,485/18,385) A, FN# 1 All calculations shown in Supplemental DRA-281-DFB Q1a Example: SONGS Allocation Shutdown M*(400/13,701)*23.68%= SONGS participants share= 23.68%, Eldorado participants share=27.8% - Revised forecast accounts for the decrease in SONGS participants share and slight increase in Eldorado participants share - forecast increases due to fact the grand total of the premium has not changed, but participants will pay $1.2M less July 2014 Forecast Supplemental DRA-281-DFB, Q. 1A -8, Vol. 1 Pt.2 R- Errata -14- Errata -24, Volume 1, Pt. 2 XS Liab- Corporate (F515342) XS Liab- SONGS (F515331) XS Liab- Eldorado (F515327) Participant Share (not part of ) 3

4 Item Final Cost Center Insurance Description Support For -14, Footnote # 1 (p.1) A B A minus B 2015 Forecast* (Nov. 2013) SONGS & Four Corners Costs to be Removed Revised 2015 Forecast (April 2014) Removed From RO Model (April 2014) XS Liab 1 FERC Property Insurance 3 F Prop Ins - Crime and Misc. 138, ,802 4 F Prop Ins - Corporate 17,972,727 17,972,727 5 F Prop Ins - SONGS 2/3 323,818 (323,818) 0 (323,818) 6 F Prop Ins - Eldorado 104, ,263 7 F Prop Ins - 4 Corners 469,127 (469,127) 0 (469,127) 8 9 Nuclear Property Insurance 10 F Nuc Prop Ins - SONGS 2,658,321 (2,658,321) 0 (2,658,321) Palo Verde 13 F Nuc and Non-nuc prop 756, , Subtotal ,423,883 (3,451,266) 18,972,617 (3,451,266) FERC Liability Insurance 20 F Liab Ins - XS WC,D&O,Fid,Aviat,Cyber 6,830,349 6,830, F XS Liab - Corporate 41,799,162 41,799,162 X 22 F515342a XS Liab - Supplemental Wildfire 21,300,000 21,300, F NV WC - Eldorado 5,891 5, F NV WC - Mohave 3,547 3, F XS Liab - SONGS 2/3 4,989,571 (1,366,660) 3,622,910 (4,989,571) X 26 F XS Liab - Eldorado 22,794 22,794 X 27 F XS WC - SONGS 2/3 359,806 (359,806) 0 (359,806) Nuclear Liability Insurance 30 F Nuc Liab Ins - Westminster 35,519 (35,519) 0 (35,519) 31 F Nuc Liab Ins - SONGS 2/3 1,179,314 (1,179,314) 0 (1,179,314) Palo Verde 34 F Nuc and Non-nuc Liability 373, , Subtotal ,899,061 (2,941,299) 73,957,762 (6,564,210) Grand Total 99,322,945 (6,392,566) 92,930,379 (10,015,476) SONGS/T.Company employees: 400/13,701=2.9%; Total 2015 XS Liability Forecast = 46,811,526. SONGS 2015 allocation=1,366, , p.1, FN#1 Difference between what was inadvertently removed and what should have been removed 6.564M-2.941M=$3.623M or FCC M-1.367M=$3.623M Provided in WP -08 V1 Pt.2R p.1; response to DRA-281-DFB 1a * The 2015 Test Year forecast was derived by taking the most recently recorded year insurance premium and escalating by the projected rates on the renewal dates, as provide by Marsh (Refer to Workpapers, -8, Vol. 1, Part 2, p.39). ~ xlsx\Apr.7 10/16/ of 3 4

5 Column 1 Column 2 Column 3 Line Item Allocation Factor 2015 Forecast* (Nov. 2013) Revised 2015 Forecast (July 2014) Difference (Errata to 2015 Forecast) 1 F XS Liab - Corporate 41,799,162 * 86.4% 46,917, % 5,118, F XS Liab - SONGS 2/ ,989,571 * 1,077,725 (3,911,845) 4 Participants' Share ,548, ,389 (1,213,738) 5 Total 6,537, % 1,412, % (5,125,584) 6 7 F XS Liab - Eldorado ,794 * 28,038 5,244 8 Participants' Share ,777 10,796 2,019 9 Total 31, % 38, % 7, Total 48,368, % 48,368, % Portion - Total 46,811,526 * 48,023,246 1,211,720 (sum of line items 1+3+7) Provided in Supplemental DRA-281-DFB 1a (Tab 2) 5

6 Final Cost Center Insurance Description 2015 Forecast* (Nov. 2013) Impacts Due to Reduced Headcount Impact of Change in Participants' Share SONGS & Four Corners Costs to be Removed Revised 2015 Forecast (July 2014) XS Liab Removed From RO Model (April 2014) FERC 924 Property Insurance F Prop Ins - Crime and Misc. 138, ,802 F Prop Ins - Corporate 17,972,727 17,972,727 F Prop Ins - SONGS 2/3 323,818 (323,818) 0 0 F Prop Ins - Eldorado 104, ,263 F Prop Ins - 4 Corners 469,127 (469,127) 0 0 Forecast per Amount Removed from RO Model Nuclear Property Insurance F Nuc Prop Ins - SONGS 2,658,321 (2,658,321) 0 0 Palo Verde F Nuc and Non-nuc prop 756, ,826 Subtotal ,423,883 18,972,617 (3,451,266) 18,972,617 FERC 925 Liability Insurance F Liab Ins - XS WC,D&O,Fid,Aviat,Cyber 6,830,349 6,830,349 F XS Liab - Corporate 41,799,162 3,906,602 1,211,719 46,917,483 X F515342a XS Liab - Supplemental Wildfire 21,300,000 21,300,000 F NV WC - Eldorado 5,891 5,891 F NV WC - Mohave 3,547 3,547 F XS Liab - SONGS 2/3 4,989,571 (3,911,846) (1,077,725) 0 X (4,989,571) F XS Liab - Eldorado 22,794 5,244 28,038 X F XS WC - SONGS 2/3 359,806 (359,806) 0 (359,806) Nuclear Liability Insurance F Nuc Liab Ins - Westminster 35,519 (35,519) 0 (35,519) F Nuc Liab Ins - SONGS 2/3 1,179,314 (1,179,314) 0 (1,179,314) Palo Verde F Nuc and Non-nuc Liability 373, ,109 Subtotal ,899, ,211,719 (2,652,364) 75,458,416 (6,564,210) 70,334,851 Grand Total 99,322, ,211,719 (6,103,630) 94,431,033 (10,015,476) 89,307,468 Provided in Supplemental DRA-281-DFB 1a (Tab 3) -14A, p.1, FN#1 Difference between what was inadvertently removed * The 2015 Test Year forecast was derived by taking the most recently recorded year insurance premium and escalating by the and what should have been removed projected rates on the renewal dates, as provide by Marsh (Refer to Workpapers, -8, Vol. 1, Part 2, p.39) M-75.46=1.44-what should have been removed Amount Removed 6.564M less 1.44M= 5.123M ~ xlsx\Final Forecast 10/16/ of 3 6