Pennsylvania Code
Title 52 - PUBLIC UTILITIES
Part I - Public Utility Commission
Subpart C - Fixed Service Utilities
Chapter 69 - GENERAL ORDERS, POLICY STATEMENTS AND GUIDELINES ON FIXED UTILITIES
POLICY STATEMENT ON NUCLEAR FUEL PROCUREMENT GUIDELINES
Section 69.206 - Inventory management

(a) A utility should have a written policy stating its nuclear fuel inventory management objectives. The policy should include inventory target levels, ordering points or cycles, and the like.

(b) The term "inventory," for the purpose of this section, § §609.201-69.205 and 69.207, includes uranium in the form of U3O8 or natural and enriched UF6 in process or in storage and all other uranium which is already processed but not in the reactor-for example, fabricated fuel assemblies-and held in storage.

(c) The inventory management objectives should be reevaluated annually for conformance with supply and demand conditions as they exist in the nuclear fuel marketplace. The written inventory management objectives should be revised if it is determined through the reevaluation process, that the objectives are not synchronized with current market conditions.

(d) A utility has an obligation to its ratepayers to maintain its nuclear fuel inventory at a level which achieves optimum fuel cost savings without endangering normal plant operations. When determining the proper inventory level, the use of innovative core design solutions to accommodate the unexpected loss of nuclear fuel assemblies should be considered.

(e) A utility will be expected to justify, for recovery purposes, the costs associated with carrying excess levels of inventory. Excess inventory levels are defined as those levels which exceed the quantity necessary to satisfy, per licensed nuclear generating unit, one standard reload in process, that is, conversion, enrichment or fabrication. Completely fabricated fuel assemblies should be held in storage no longer than 4 months before they are loaded into the reactor. The Pennsylvania Public Utility Commission (Commission) recognizes that nuclear fuel inventories in excess of the levels in this subsection are occasionally necessary and proper. The utility shall be able to cost justify the excess amounts. A demonstrable, extraordinary operational requirement or nuclear fuel market situation may provide an instance where excess inventory levels could be deemed proper.

(f) Pertinent data, related to this subsection, should be retained by the utility in accordance with the Federal Energy Regulatory Commission's Record Retention Table and made available for Commission review upon request.