Advancements in Methodology
Since 1989, numerous enhancements have been made to the methodology created by Four Points Group. New studies consider site-specific data, including:
- Plant Configuration
- Reactor Core Characteristics
- Region Labor Rates
- Plant Operating and Maintenance (O&M) Costs
- Decommissioning Funding, and Trust Fund Balance
- Plant Book Value
In addition, the computer model used to perform the actual analysis has been significantly enhanced, and now utilizes a simple user-interface which allows data to be easily revised or updated (for example, to run sensitivity studies on key parameters such as low level waste burial rates, or to perform annual updates and reassessments of insurance needs).
Incorporating Risk Assessment Knowledge
To accurately represent the risk of severe accidents for a specific plant, a detailed and plant-specific definition of the plant's final condition or end state is required. This is done using the plant-specific probabilistic risk assessment (PRA) results. Specifically, the PRA is used to determine the actual plant end states and provides a greater level of detail in the definition of the cleanup costs. In addition, the PRA provides knowledge of the probability of occurrence of each end state. This knowledge, coupled with the cost estimates generated, allows the presentation of a complete picture of the total risk. Such an integrated picture then allows utility management to evaluate the level of insurance coverage necessary to limit risk to what is judged to be acceptable and have a comprehensive basis for supporting the decision.
Severe accident cost analyses for evaluating the cost of cleanup provides a justifiable, defensible process for assessing the level of nuclear property insurance needed. Additionally, Four Points Group has extended the methodology to provide greater levels of specificity and detail to allow the preparation of estimates which are much more plant-specific and provide a more comprehensive technical basis for judging the levels of property insurance required.