E910-03-010, Decommissioning Reports for Three Mile Island Unit 2, & Saxton Nuclear Experimental Corporation

Decommissioning Reports for Three Mile Island Unit 2, & Saxton Nuclear Experimental Corporation

ML030840104
Person / Time
Site:	Three Mile Island, Saxton  File:GPU Nuclear icon.png
Issue date:	03/21/2003
From:	Saunders R FirstEnergy Nuclear Operating Co
To:	Document Control Desk, NRC/FSME
References
+sunsi/sispmjr=200603, -RFPFR, 5928-03-20028, E910-03-010
Download: ML030840104 (4)

Text

FENOC 76 South Main Street Akron, Ohio 44308 FirstEnergyNuclear OperatingCompany 330-384-2415 Robert F.Saunders Fax 330-384-5909 President March 21,2003 CERTIFIED MAIL Return Receipt Requested Letter Number: 5928-03-20028 (file number 03029) (Three Mile Island)

Letter Number: E910-03-010 (Saxton)

United States Nuclear Regulatory Commission Document Control Desk Washington, D.C. 20555-0001 Three Mile Island, Unit 2 Docket No. 50-320 Saxton Nuclear Experimental Corporation Docket No 50-146 RE: Decommissioning Reports for the Three Mile Island, Unit 2; and the Saxton Nuclear Experimental Corporation Ladies and Gentlemen Pursuant to 10 CFR 50 75(f)(1), FirstEnergy Corp is hereby submitting the Decommissioning Reports for the Three Mile Island Unit 2; and the Saxton Nuclear Experimental Corporation for the year ending December 31, 2002.

If you have questions or require additional information, please contact Mr. R. Terry Conlin, Sr. Business Analyst at 330-384-4605.

Very truly yours, Robert F. Saunders President Attachments cc: NRC Region I Administrator NRC Project Scientist, Region 1 for Three Mile Island NRC Project Manager for Three Mile Island NRC Project Manager for Saxton NRC Research Reactors Program NRC TMI-2 Inspector George Rombold - Regulatory Assurance Mgr. - Amergen James Byrne - Three Mile Island George A. Kuehn, Jr. - Saxton R. I. Parrish - FE Reading M E. O'Reilly (w/o attachments)

E J. Sitarz (wv/o attachments)

(Vr&5O1 D. C Perrine (w/o attachments)

NRC Decommissioning Funding Status Report Three Mile Island Unit No. 2 As of December 31, 2002 (Note: This report reflects FirstEnergy Corp.'s consolidated share of ownership interest in Three Mile Island Unit 2).

1. Decommissioning fund estimate, pursuant to 10 CFR 50.75(b) and (c) based on a 1995 TMI 2 site specific decommissioning cost study escalated to 2002 dollars:

Radiological $481,009,090 Non-Radiological 38,517,195 FirstEnergy Consolidated $519,526.285

2. The amount accumulated in external trust funds at December 31, 2002:

Metropolitan Edison Company $155,688,975 Pennsylvania Electric Company 88,815,468 Jersey Central Power & Light 106,273,827 FirstEnergy Consolidated $350,778,270

3. A schedule of the annual amounts over the number of years remaining to be collected from ratepayers is attached as Schedule 1:

4. The assumptions used regarding escalation in decommissioning cost, rates of earnings on decommissioning funds, and rates of other factors used in funding projections:

Consolidated Ownership Interest in Unit 100%

Funds Earnings Rate Through Dismantlement 6.000%

Decommissioning Cost Inflation Rate 4.000%

Year of License Termination 2014 Year of Final Dismantlement 2023

5. There are no contracts upon which FirstEnergy Corp. is relying pursuant to 10 CFR 50.75(e)(1)(v).

6. There are no modifications to the licensee's current method of providing financial assurance since the last submitted report.

7. On November 7, 2001, Metropolitan Edison Company, Pennsylvania Electric Company and Jersey Central Power & Light, the utilities owning Three Mile Island Unit 2, became wholly owned subsidiaries of FirstEnergy Corp. as a result of a merger with GPU, Inc. The Bank of New York has been retained as custodian of the Three Mile Island Unit 2 Nuclear Decommissioning Trust. The trust agreement, between The Bank of New York and the utility companies, had no material changes.

Schedule 1 Page 1 of 1 NRC Decommissioning Funding Status Report Schedule of Annual Amounts Remaining to be Collected FirstEnergy Corp.

Three Mile Island Unit 2 Annual Amounts Collected Metrolpolitan Pennsylvania Jersey Central FirstEnergy CA;* Flartrin Pnwe.r & Lioht Consolidated Year Power & Linht 2002 2003 9,483,000 2,291,000 11,774,000 9,483,000 2,291,000 11,774,000 2004 9,483,000 2,291,000 11,774,000 2005 9,483,000 2,291,000 11,774,000 2006 9,483,000 2,291,000 11,774,000 2007 9,483,000 2,291,000 11,774,000 2008 9,483,000 2,291,000 11,774,000 2009 9,483,000 2,291,000 11,774,000 2010 2,291,000 2,291,000 2011 2,291,000 2,291,000 2012 2,291,000 2,291,000 2013 2,291,000 2,291,000 2014 2015 2016 2017 2018 2019 2020 2021 2022 Total 75,864,000 27,492,000 103,356,000

NRC Decommissioning Funding Status Report Saxton Nuclear Experimental Corporation As of December 31, 2002 (Note: This report reflects FirstEnergy Corp.'s consolidated share of ownership interest in the Saxton Nuclear Experimental Corporation).

1. Decommissioning estimate, pursuant to 10 CFR 50.75(b) and (c) based on a 1998 Saxton site specific decommissioning cost study escalated to 2002 dollars and modified for actual findings: $ 63,515,000

2. The accumulated amount expended at the end of the calendar year ended preceding the date of the report for items included in 10 CFR 50.75 (b) and (c): $ 58,713,436

3. Schedule of the annual amounts remaining to be expended for items in 10 CFR 50.75 (b) and (c):

a. Amount remaining $ 4,801,565 To be collected from New Jersey ratepayers 3,629,377 Amount to be funded by FirstEnergy Corp. 1,172,188

b. Annual rate collections in effect as of December 31, 2002 $ 174,778 (1)

c. Number of years to collect 21

4. The assumptions used regarding escalation in decommissioning cost, rates of earnings on decommissioning funds, and rates of other factors used in funding projections:

Consolidated Ownership Interest in Unit 100%

Funds Earnings Rate Through Dismantlement 5.400%

Decommissioning Cost Inflation Rate 3.400%

5. There are no contracts upon which FirstEnergy Corp. is relying pursuant to 10 CFR 50.75(e)(1)(v).

6. There are no modifications to the licensee's current method of providing financial assurance since the last submitted report.

7. On November 7, 2001, Metropolitan Edison Company, Pennsylvania Electric Company and Jersey Central Power & Light, the utilities owning the Saxton facility, became wholly-owned subsidiaries of FirstEnergy Corp. as a result of a merger with GPU, Inc. First Union Bank has been retained as custodian of the Saxton Nuclear Decommissioning Trust. The trust agreement, between First Union and the utility companies, had no material changes.

Additionally, all Investment Managers have similarly been retained.

(1) Pennsylvania collections ceased December 31,1998. New Jersey collections continue at an annual rate of $174,778. FirstEnergy Corp. will seek additional recovery from New Jersey ratepayers in 2003. Any funding shortfall will be borne by FE shareholders. For additional information, please refer to the February 19, 2001 memo to the Nuclear Regulatory Commission concerning a Parent Guarantee for the decommissioning funding of the Saxton facility.