Incentive regulation of investor-owned nuclear power plants by public utility regulators. Revision 1

The US Nuclear Regulatory Commission (NRC) periodically surveys the Federal Energy Regulatory Commission (FERC) and state regulatory commissions that regulate utility owners of nuclear power plants. The NRC is interested in identifying states that have established economic or performance incentive programs applicable to nuclear power plants, how the programs are being implemented, and in determining the financial impact of the programs on the utilities. The NRC interest stems from the fact that such programs have the potential to adversely affect the safety of nuclear power plants. The current report is an update of NUREG/CR-5975, Incentive Regulation of Investor-Owned Nuclear Power Plants by Public Utility Regulators, published in January 1993. The information in this report was obtained from interviews conducted with each state regulatory agency that administers an incentive program and each utility that owns at least 10% of an affected nuclear power plant. The agreements, orders, and settlements that form the basis for each incentive program were reviewed as required. The interviews and supporting documentation form the basis for the individual state reports describing the structure and financial impact of each incentive program.