TMI-11-026, Decommissioning Funding Status Report

Decommissioning Funding Status Report

ML110950371
Person / Time
Site:	Three Mile Island
Issue date:	03/30/2011
From:	Lash J GPU Nuclear
To:	Document Control Desk, NRC/FSME
References
TMI-11-026
Download: ML110950371 (12)

Text

GPU Nuclear, Inc.

Three Mile Island Nuclear Station NUCLEAR Route 441 South Post Office Box 480 Middletown, PA 17057-0480 Tel 717-948-8461 March 30, 2011 TMI-1 1-026 10 CFR 50.75 ATTN: Document Control Desk United States Nuclear Regulatory Commission Washington, D.C. 20555-0001

SUBJECT:

Three Mile Island Nuclear Station, Unit 2 Docket No. 50-320, License No. DPR-73 Decommissioning Funding Status Report for the Three Mile Island Nuclear Station, Unit 2 Pursuant to 10 CFR 50.75(f)(1), GPU Nuclear, Inc. is hereby submitting the Decommissioning Funding Status Report for Three Mile Island Nuclear Station, Unit 2 for the year ending December 31, 2010.

There are no regulatory commitments contained in this letter. If there are any questions, or if additional information is required, please contact Mr. Thomas A. Lentz, Manager -

FirstEnergy Nuclear Operating Company Fleet Licensing, at (330) 761-6071.

Sincerely,

-Jafmes H. Lash Chief Nuclear Officer

Attachment:

Decommissioning Funding Status Report Three Mile Island Nuclear Station, Unit 2 As of December 31, 2010 cc: NRC Region I Administrator NRC Project Manager NRC Resident Inspector <SEA I

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Attachment TMI-1 1-026 Decommissioning Funding Status Report Three Mile Island Nuclear Station, Unit 2 As of December 31, 2010 Page 1 of 11

1. Decommissioning fund estimate, pursuant to 10 CFR 50.75(b) and (c) is based upon a site specific decommissioning cost study, Decommissioning Cost Analysis for Three Mile Island Unit 2, dated January 2009 and escalated to 2010 dollars:

Radiological $860,374,745 Non-Radiological 32,658,865 FirstEnergy Consolidated $893,03361 0

2. The amount accumulated in external trust funds at December 31, 2010:

Metropolitan Edison Company $297,193,872 Pennsylvania Electric Company 156,540,599 Jersey Central Power & Light Company 185,565,006 FirstEnergy Corp. Consolidated $639.299,477

3. A schedule of the annual amounts 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%

"Real" Rate of Return 2.00%

Rate of Escalation 2.81%

Year of Site Restoration Completion 2054 Dormancy Period 2014-2043 Year of Three Mile Island Nuclear Station, Unit 1 2034 Operating License Termination An additional assumption is the decommissioning activities for Three Mile Island Nuclear Station, Unit 2 will be synchronized with those of Three Mile Island Nuclear Station, Unit 1 such that the licenses for both units will be terminated concurrently.

5. There are no contracts upon which the owners/licensees are 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.

Attachment TMI-1 1-026 Page 2 of 11

7. There were no amendments to the Trust Agreements for the above-mentioned owners of Three Mile Island Nuclear Station, Unit 2.

8. Schedules 2 through 4 each contains an analysis of funding earnings and withdrawals for the three owners of Three Mile Island Nuclear Station, Unit 2; Metropolitan Edison Company, Pennsylvania Electric Company, and Jersey Central Power & Light Company; respectively. Schedule 5 contains a consolidated analysis for FirstEnergy Corp.

9. Mathematical rounding was performed during the development of the supporting calculations.

10. References A. Decommissioning Cost Analysis for Three Mile Island Unit 2, dated January 2009.*

B. FinancialEscalationAnalysis for the Decommissioningof Three Mile Island Unit 2, dated May 2009.*

• Both documents were contained in GPU Nuclear letter, subject: "Three Mile Island Nuclear Station, Unit 2 Docket No. 50-320, License No. DPR-73 Decommissioning Funding Status Report for the Three Mile Island Nuclear Station, Unit 2 Pursuant to 10 CFR 50.75(f)(1)," dated March 29, 2010 (Accession Number ML100960464).

Attachment TMI-1 1-026 Page 3 of 11 Schedule 1 Schedule of Annual Amounts Remaining to be Collected Three Mile Island Nuclear Station, Unit 2 Annual Amounts to be Collected Jersey Central Metropolitan Pennsylvania Power & Light FirstEnergy Corp.

Year Edison ComDa nv Electric Company Company1 Consolidated 2011 723,628 723,628 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 Total Note 1: On February 19, 2010 the Jersey Central Power & Light Company filed a request with the New Jersey Board of Public Utilities to reduce the Nuclear Decommissioning Cost charge to zero. The New Jersey Board of Public Utilities has not yet approved the request.

Therefore, it is assumed that the Jersey Central Power & Light Company will collect at least

$723,628 in 2011.

Attachment TMI-1 1-026 Page 4 of 11 Schedule 2 Metropolitan Edison Company1 Reflects 50% ownership in Three Mile Island Nuclear Station, Unit 2 Pre Tax After - Tax Equivalent Estimated Weighted Average Net Investment Rate 2.00%

Estimated Escalation Rate 2.81%

Estimated AfterTax Rate of Return 4.81% 6.03%

Qualified Trust Balance on December 31, 2010 297,193,872 Non- Qualified Trust Balance on December 31, 2010 Total 297,193,872 Beginning 2 Ending Year Balance Deposits Earnings Withdrawals Balance 2011 297,193,872 14,295,025 311,488,897 2012 311,488,897 14,982,616 326,471,513 2013 326,471,513 15,703,280 342,174,793 2014 342,174,793 16,458,608 358,633,400 2015 358,633,400 17,250,267 375,883,667 2016 375,883,667 18,080,004 393,963,671 2017 393,963,671 18,949,653 412,913,324 2018 412,913,324 19,861,131 432,774,455 2019 432,774,455 20,816,451 453,590,906 2020 453,590,906 21,817,723 475,408,628 2021 475,408,628 22,867,155 498,275,783 2022 498,275,783 23,967,065 522,242,849 2023 522,242,849 25,119,881 547,362,730 2024 547,362,730 26,328,147 573,690,877 2025 573,690,877 27,594,531 601,285,408 2026 601,285,408 28,921,828 630,207,236 2027 630,207,236 30,312,968 660,520,204 2028 660,520,204 31,771,022 692,291,226 2029 692,291,226 33,299,208 725,590,434 2030 725,590,434 34,900,900 760,491,334 2031 760,491,334 36,579,633 797,070,967 2032 797,070,967 38,339,114 835,410,081 2033 835,410,081 40,183,225 875,593,305 2034 875,593,305 42,055,793 (1,252,500) 916,396,598 2035 916,396,598 43,990,701 (1,829,000) 958,558,300 2036 958,558,300 46,015,962 (1,885,500) 1,002,688,761 2037 1,002,688,761 48,136,280 (1,934,500) 1,048,890,541 2038 1,048,890,541 50,355,916 (1,990,000) 1,097,256,457 2039 1,097,256,457 52,679,551 (2,047,500) 1,147,888,508 2040 1,147,888,508 55,111,826 (2,112,500) 1,200,887,834 2041 1,200,887,834 57,658,424 (2,168,000) 1,256,378,258 2042 1,256,378,258 60,324,483 (2,231,000) 1,314,471,741 2043 1,314,471,741 60,226,936 (62,352,500) 1,312,346,177 2044 1,312,346,177 58,087,204 (104,712,000) 1,265,721,381 2045 1,265,721,381 54,992,869 (122,418,500) 1,198,295,749 2046 1,198,295,749 51,572,976 (126,092,500) 1,123,776,226

Attachment TMI-1 1-026 Page 5 of 11 2047 1,123,776,226 47,806,360 (129,881,000) 1,041,701,586 2048 1,041,701,586 43,652,871 (134,157,500) 951,196,956 2049 951,196,956 39,705,394 (125,721,000) 865,181,350 2050 865,181,350 35,660,419 (123,800,500) 777,041,269 2051 777,041,269 31,239,905 (127,563,000) 680,718,174 2052 680,718,174 27,116,167 (116,972,500) 590,861,840 2053 590,861,840 25,809,611 (54,279,500) 562,391,951 2054 562,391,951 25,558,390 (31,032,500) 556,917,841 Note 1: Mathematical rounding was performed during the development of the supporting calculations.

Note 2: The withdrawals are Metropolitan Edison Company's share of the decommissioning expenditures contained in the FinancialEscalationAnalysis for the Decommissioning of Three Mile Island Unit 2, dated May 2009 (Reference B). The expenditures are assumed to be made at beginning of the year.

Attachment TMI-1 1-026 Page 6 of 11 Schedule 3 Pennsylvania Electric Company1 Reflects 25% ownership in Three Mile Island Nuclear Station, Unit 2 Pre Tax After - Tax Equivalent Estimated Weighted Average Net Investment Rate 2.00%

Estimated Escalation Rate 2.81%

Estimated AfterTax Rate of Return 4.81% 6.03%

Qualified Trust Balance on December 31, 2010 61,725,379 Non-Qualified Trust Balance on December 31, 2010 94,815,220 Total 156,540,599 Beginning 2 Ending Year Balance Deposits Earnings Withdrawals Balance 2011 156,540,599 7,529,603 164,070,202 2012 164,070,202 7,891,777 171,961,979 2013 171,961,979 8,271,371 180,233,350 2014 180,233,350 8,669,224 188,902,574 2015 188,902,574 9,086,214 197,988,788 2016 197,988,788 9,523,261 207,512,049 2017 207,512,049 9,981,330 217,493,378 2018 217,493,378 10,461,431 227,954,810 2019 227,954,810 10,964,626 238,919,436 2020 238,919,436 11,492,025 250,411,461 2021 250,411,461 12,044,791 262,456,252 2022 262,456,252 12,624,146 275,080,398 2023 275,080,398 13,231,367 288,311,765 2024 288,311,765 13,867,796 302,179,561 2025 302,179,561 14,534,837 316,714,398 2026 316,714,398 15,233,963 331,948,361 2027 331,948,361 15,966,716 347,915,077 2028 347,915,077 16,734,715 364,649,792 2029 364,649,792 17,539,655 382,189,447 2030 382,189,447 18,383,312 400,572,759 2031 400,572,759 19,267,550 419,840,309 2032 419,840,309 20,194,319 440,034,628 2033 440,034,628 21,165,666 461,200,293 2034 461,200,293 22,153,611 (626,250) 482,727,655 2035 482,727,655 23,175,213 (914,500) 504,988,368 2036 504,988,368 24,244,594 (942,750) 528,290,212 2037 528,290,212 25,364,234 (967,250) 552,687,196 2038 552,687,196 26,536,395 (995,000) 578,228,591 2039 578,228,591 27,763,553 (1,023,750) 604,968,394 2040 604,968,394 29,048,174 (1,056,250) 632,960,318 2041 632,960,318 30,393,251 (1,084,000) 662,269,569 2042 662,269,569 31,801,511 (1,115,500) 692,955,580 2043 692,955,580 31,831,586 (31,176,250) 693,610,915 2044 693,610,915 30,844,361 (52,356,000) 672,099,277 2045 672,099,277 29,383,810 (61,209,250) 640,273,837 2046 640,273,837 27,764,647 (63,046,250) 604,992,234

Attachment TMI-1 1-026 Page 7 of 11 2047 604,992,234 25,976,488 (64,940,500) 566,028,222 2048 566,028,222 23,999,470 (67,078,750) 522,948,942 2049 522,948,942 22,130,254 (62,860,500) 482,218,696 2050 482,218,696 20,217,317 (61,900,250) 440,535,763 2051 440,535,763 18,121,880 (63,781,500) 394,876,143 2052 394,876,143 16,180,354 (58,486,250) 352,570,247 2053 352,570,247 15,653,207 (27,139,750) 341,083,704 2054 341,083,704 15,659,795 (15,516,250) 341,227,249 Note 1: Mathematical rounding was performed during the development of the supporting calculations.

Note 2: The withdrawals are Pennsylvania Electric Company's share of the decommissioning expenditures contained in the FinancialEscalationAnalysis for the Decommissioning of Three Mile Island Unit 2, dated May 2009 (Reference B). The expenditures are assumed to be made at beginning of the year.

Attachment TMI-1 1-026 Page 8 of 11 Schedule 4 Jersey Central Power & Light Company1 Reflects 25% ownership in Three Mile Island Nuclear Station, Unit 2 After - Tax Pre Tax Equivalent Estimated Weighted Average Net Investment Rate 2.00%

Estimated Escalation Rate 2.81%

Estimated AfterTax Rate of Return 4.81% 6.03%

Qualified Trust Balance on December 31, 2010 155,881,034 Non-Qualified Trust Balance on December 31, 2010 29,683,972 Total 185,565,006 Beginning 2 3 Ending Year Balance Deposits Earnings Withdrawals Balance 2011 185,565,006 723,628 8,943,080 195,231,714 2012 195,231,714 - 9,390,645 204,622,359 2013 204,622,359 - 9,842,335 214,464,695 2014 214,464,695 - 10,315,752 224,780,447 2015 224,780,447 - 10,811,939 235,592,386 2016 235,592,386 - 11,331,994 246,924,380 2017 246,924,380 - 11,877,063 258,801,443 2018 258,801,443 - 12,448,349 271,249,792 2019 271,249,792 - 13,047,115 284,296,907 2020 284,296,907 - 13,674,681 297,971,588 2021 297,971,588 - 14,332,433 312,304,022 2022 312,304,022 - 15,021,823 327,325,845 2023 327,325,845 - 15,744,373 343,070,218 2024 343,070,218 - 16,501,677 359,571,896 2025 359,571,896 - 17,295,408 376,867,304 2026 376,867,304 - 18,127,317 394,994,621 2027 394,994,621 - 18,999,241 413,993,862 2028 413,993,862 - 19,913,105 433,906,967 2029 433,906,967 - 20,870,925 454,777,892 2030 454,777,892 - 21,874,817 476,652,709 2031 476,652,709 - 22,926,995 499,579,704 2032 499,579,704 - 24,029,784 523,609,488 2033 523,609,488 - 25,185,616 548,795,104 2034 548,795,104 - 26,366,922 (626,250) 574,535,776 2035 574,535,776 - 27,591,183 (914,500) 601,212,460 2036 601,212,460 - 28,872,973 (942,750) 629,142,683 2037 629,142,683 - 30,215,238 (967,250) 658,390,671 2038 658,390,671 - 31,620,732 (995,000) 689,016,403 2039 689,016,403 - 33,092,447 (1,023,750) 721,085,099 2040 721,085,099 - 34,633,388 (1,056,250) 754,662,237 2041 754,662,237 - 36,247,113 (1,084,000) 789,825,350 2042 789,825,350 - 37,936,944 (1,115,500) 826,646,794 2043 826,646,794 - 38,262,133 (31,176,250) 833,732,677 2044 833,732,677 - 37,584,218 (52,356,000) 818,960,895 2045 818,960,895 - 36,447,854 (61,209,250) 794,199,500 2046 794,199,500 - 35,168,471 (63,046,250) 766,321,721

Attachment TMI-1 1-026 Page 9 of 11 2047 766,321,721 - 33,736,437 (64,940,500) 735,117,658 2048 735,117,658 - 32,132,671 (67,078,750) 700,171,579 2049 700,171,579 - 30,654,663 (62,860,500) 667,965,742 2050 667,965,742 - 29,151,750 (61,900,250) 635,217,242 2051 635,217,242 - 27,486,059 (63,781,500) 598,921,801 2052 598,921,801 - 25,994,950 (58,486,250) 566,430,501 2053 566,430,501 - 25,939,885 (27,139,750) 565,230,636 2054 565,230,636 - 26,441,262 (15,516,250) 576,155,648 Note 1: Mathematical rounding was performed during the development of the supporting calculations.

Note 2: On February 19, 2010 the Jersey Central Power & Light Company filed a request with the New Jersey Board of Public Utilities to reduce the Nuclear Decommissioning Cost charge to zero. The New Jersey Board of Public Utilities has not yet approved the request. Therefore, it is assumed that the Jersey Central Power & Light Company will collect at least $723,628 in 2011.

Note 3: The withdrawals are Jersey Central Power & Light Company's share of the decommissioning expenditures contained in the FinancialEscalationAnalysis for the Decommissioning of Three Mile Island Unit 2, dated May 2009 (Reference B). The expenditures are assumed to be made at beginning of the year.

Attachment TMI-1 1-026 Page 10 of 11 Schedule 5 FirstEnergy Corp. Consolidated 1 Three Mile Island Nuclear Station, Unit 2 Pre Tax After - Tax Equivalent Estimated Weighted Average Net Investment Rate 2.00%

Estimated Escalation Rate 2.81%

Estimated AfterTax Rate of Return 4.81% 6.03%

Qualified Trust Balance on December 31, 2010 514,800,284 Non-Qualified Trust Balance on December 31, 2010 124,499,193 Total 639,299,477 Beginning 3 Ending 2

Year Balance Deposits Earnings Withdrawals Balance 2011 639,299,477 723,628 30,767,708 670,790,813 2012 670,790,813 32,265,038 703,055,851 2013 703,055,851 33,816,986 736,872,838 2014 736,872,838 35,443,583 772,316,421 2015 772,316,421 37,148,420 809,464,841 2016 809,464,841 38,935,259 848,400,100 2017 848,400,100 40,808,045 889,208,145 2018 889,208,145 42,770,912 931,979,056 2019 931,979,056 44,828,193 976,807,249 2020 976,807,249 46,984,429 1,023,791,678 2021 1,023,791,678 49,244,380 1,073,036,057 2022 1,073,036,057 51,613,034 1,124,649,092 2023 1,124,649,092 54,095,621 1,178,744,713 2024 1,178,744,713 56,697,621 1,235,442,334 2025 1,235,442,334 59,424,776 1,294,867,110 2026 1,294,867,110 62,283,108 1,357,150,218 2027 1,357,150,218 65,278,925 1,422,429,143 2028 1,422,429,143 68,418,842 1,490,847,985 2029 1,490,847,985 71,709,788 1,562,557,773 2030 1,562,557,773 75,159,029 1,637,716,802 2031 1,637,716,802 78,774,178 1,716,490,980 2032 1,716,490,980 82,563,216 1,799,054,196 2033 1,799,054,196 86,534,507 1,885,588,703 2034 1,885,588,703 90,576,326 (2,505,000) 1,973,660,029 2035 1,973,660,029 94,757,098 (3,658,000) 2,064,759,127 2036 2,064,759,127 99,133,529 (3,771,000) 2,160,121,656 2037 2,160,121,656 103,715,753 (3,869,000) 2,259,968,409 2038 2,259,968,409 108,513,042 (3,980,000) 2,364,501,451 2039 2,364,501,451 113,535,550 (4,095,000) 2,473,942,001 2040 2,473,942,001 118,793,388 (4,225,000) 2,588,510,389 2041 2,588,510,389 124,298,788 (4,336,000) 2,708,473,177 2042 2,708,473,177 130,062,938 (4,462,000) 2,834,074,115 2043 2,834,074,115 130,320,654 (124,705,000) 2,839,689,769 2044 2,839,689,769 126,515,784 (209,424,000) 2,756,781,553 2045 2,756,781,553 120,824,533 (244,837,000) 2,632,769,086 2046 2,632,769,086 114,506,095 (252,185,000) 2,495,090,180

Attachment TMI-1 1-026 Page 11 of 11 2047 2,495,090,180 107,519,285 (259,762,000) 2,342,847,466 2048 2,342,847,466 99,785,012 (268,315,000) 2,174,317,478 2049 2,174,317,478 92,490,310 (251,442,000) 2,015,365,788 2050 2,015,365,788 85,029,486 (247,601,000) 1,852,794,274 2051 1,852,794,274 76,847,844 (255,126,000) 1,674,516,118 2052 1,674,516,118 69,291,471 (233,945,000) 1,509,862,589 2053 1,509,862,589 67,402,703 (108,559,000) 1,468,706,292 2054 1,468,706,292 67,659,446 (62,065,000) 1,474,300,738 Note 1: Mathematical rounding was performed during the development of the supporting calculations.

Note 2: On February 19, 2010 the Jersey Central Power & Light Company filed a request with the New Jersey Board of Public Utilities to reduce the Nuclear Decommissioning Cost charge to zero. The New Jersey Board of Public Utilities has not yet approved the request. Therefore, it is assumed that the Jersey Central Power & Light Company will collect at least $723,628 in 2011.

Note 3: The withdrawals are the decommissioning expenditures contained in the Financial EscalationAnalysis for the Decommissioning of Three Mile Island Unit 2, dated May 2009 (Reference B). The expenditures are assumed to be made at beginning of the year.