These findings are based on a cash flow analysis that utilized methods very similar to those employed in previous fee adequacy studies. Future program cost increases due to general inflation or real price increases could be recovered by indexing the fee to an inflation or other cost index. Many of the cost and revenue forecasts analyzed, particularly those for the US Energy Information Administration's (EIA) Mid Case generation forecast that includes no increased fuel burnup, show margins of revenues over costs.
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The principal recommendation of this year's analysis is that the ongoing disposal fee should remain at 1.0 mill per (net) kilowatt-hour (kwH) for 1986 based on the assumption that defense waste fees will be adequate to cover the defense share of the program costs and the following findings: The current 1.0 mill per kwH fee is more » projected to produce revenues sufficient to offset estimated total system life-cycle costs for a reasonable range of program cost, nuclear electric generation, and interest rate forecasts, as detailed later in this report.
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As with past reports, the fees for commercial spent nuclear fuel (SNF) are covered.
WHAT DOES LICENSE TYPE PCLP PK MEAN SERIES
This is the fourth annual report in a series that evaluates the adequacy of the fees assessed to cover the federal government's costs for the disposal of high-level radioactive wastes. In addition, the model accepts either current-dollar or constant-dollar cost measures, and in the case of the latter escalates the costs with user-provided assumptions. Not only is the user able to specify the percent of total costs to be covered by each method of fee assessment listed above but also the user can more » specify a revenue-cost ratio, an option that would prove useful in trying to assess the general uncertainty involved when dealing in the future. Another feature of the model is its versatility. The model allows testing of these variables in order to determine the relative significance of each component with regard to cost to, and impact on, the nuclear power industry. The model uses as basic input data: cost schedule for the federal repository quantity flow schedule for each factor to be charged schedule for escalation rate, discount rate, and interest rate and fraction of costs to be recovered on each quantity flow if the split-fee option is used. Over the period of facility operation, the computed-cost schedule shows variability on a year-to-year basis only within specified ranges.
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As currently constructed, the model computes current dollar prices on a yearly basis for a single unit charge or a split fee based upon two user-provided quantity flows. A model was developed for determining a pricing schedule designed to recover federal government costs incurred in the development, design, construction, operation, decommissioning, and surveillance of a federal repository for high-level waste generated by the commercial nuclear power industry.