RE: American Nuclear Insurers

["Somerville, Mark" <MOS3@PGE.COM>]

Chad,

As mentioned by Don and Paul, ANI represents a pool of insurance carriers.

They are funded by premiums paid by the nuclear utilities.



The right guy to talk to is Jerre Forbes, a very remarkable guy.  Time spent

talking with him is well spent and enjoyable.



ANI issues standards that touch different aspects of the business.  Yearly,

utilities are inspected against those standards and engineering rating

factors are determined.  This is good because a report is issued at the time

of the inspection that shows how your performance in the various categories

stacks up to others.



The premiums are levelized based on the performance indicators.  So your

premium can go up or down as performance and operating parameters change.

The entire process is revenue neutral though, so the same amount of money

comes in but an individual utility's share can, and does, change with

performance.



It's really a good process and the folks at ANI are very helpful.



Mark O. Somerville

Certified Health Physicist

Registered Environmental Assessor

Diablo Canyon Power Plant

(805) 545-4007

mailto: mos3@pge.com





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