The Rancho Seco Nuclear Generating Station ceased operation in June of 1989 and entered an extended period of SAFSTOR to allow funds to accumulate for dismantlement. Incremental dismantlement was begun in 1997 of steam systems and based on the successful completion of work, the Sacramento Municipal Utility District (SMUD) board of directors approved full decommissioning in July 1999. A schedule has been developed for completion of decommissioning by 2008, allowing decommissioning funds to accumulate until they are needed. Systems removal began in the Auxiliary Building in October of 1999 and in the Reactor Building in January of 2000. Systems dismantlement continues in the Reactor Building and should be completed by the end of 2003. System removal is near completion in the Auxiliary Building with removal of the final liquid waste tanks in progress. The spent fuel has been moved to dry storage in an onsite ISFSI, with completion on August 21, 2002. The spent fuel racks are currently being removed from the pool, packaged and shipped, and then the pool will be cleaned. Also in the last year the reactor coolant pumps and primary piping were removed and shipped. Characterization and planning work for the reactor vessel and internals is also in progress with various cut-up and/or disposal options being evaluated. In the year ahead the remaining systems in the Reactor Building will be removed, packaged and sent for disposal, including the pressurizer. Work will be started on embedded and underground piping and the large outdoor tanks. Building survey and decontamination will begin. RFP's for removal of the vessel and internals and the steam generators are planned to fix the cost of those components. If the costs are consistent with current estimates the work will go forward. If they are not, hardened SAFSTOR/entombment may be considered