TMI-12-006, Submittal of Decommissioning Funding Status Report

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Submittal of Decommissioning Funding Status Report
ML12101A105
Person / Time
Site: Crane Constellation icon.png
Issue date: 03/30/2012
From: Pace D
GPU Nuclear Corp
To:
Document Control Desk, NRC/FSME
References
TMI-12-006
Download: ML12101A105 (14)
v • d • e


Text

NUCLEAR GPU Nuclear, Inc.

Three Mile Island Nuclear Station Route 441 South Post Office Box 480 Middletown, PA 17057-0480 Tel 717-948-8461 10 CFR 50.75 March 30, 2012 TMI-12-006 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 a Decommissioning Funding Status Report for Three Mile Island Nuclear Station, Unit 2 for the year ending December 31, 2011. The report contains an analysis based on a site specific decommissioning cost study and an analysis based on the NRC formula described in 10 CFR 50.75(b) and (c).

There are no regulatory commitments contained in this submittal. If there are any questions or if additional information is required, please contact Mr. Phil H. Lashley, Supervisor - FirstEnergy Nuclear Operating Company Fleet Licensing, at (330) 315-6808.

Sincerely, Danny L. Pace President

Attachment:

Decommissioning Funding Status Report Three Mile Island Nuclear Station, Unit 2 As of December 31, 2011 cc: NRC Region I Administrator NRC Project Manager NRC Resident Inspector

Attachment TMI-12-006 Decommissioning Funding Status Report Three Mile Island Nuclear Station, Unit 2 As of December 31, 2011 Page 1 of 13 Decommissioning Analysis Based on Site Specific Decommissioning Cost Study

1. Decommissioning funds estimated to be required pursuant to 10 CFR 50.75(b) and (c) are based upon a site specific decommissioning cost study, Decommissioning Cost Analysis for Three Mile Island Unit 2, dated January 2009, and escalated to 2011 dollars:

Radiological Non-Radiological FirstEnergy Corp. Consolidated

$884,551,275 33,576,579

$918.127.854 The estimated total decommissioning costs escalated to future year dollars (2034 - 2054) is $2,552,867,000.

2. The amount accumulated in external trust funds as of December 31, 2011:

Metropolitan Edison Company Pennsylvania Electric Company Jersey Central Power & Light Company FirstEnergy Corp. Consolidated After Tax

$308,298,782 165,117,425 191,340,458

$664,756,665

3. There are no longer any funds to be collected from the ratepayers.
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%

Estimated Rate of Escalation in Decommissioning Costs 2.81%

Estimated Net Investment Rate 2.00%

Estimated After-Tax Rate of Return 4.81%

Year of Site Restoration Completion 2054 Dormancy Period Early 2034 - Mid-2043 Year of Three Mile Island Nuclear Station, Unit 1 Operating 2034 License Termination An additional assumption is that 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 TM1-12-006 Page 2 of 13

7. There were no amendments to the Trust Agreements for the above-mentioned owners of Three Mile Island Nuclear Station, Unit 2.
8. Schedules 1 through 3 each contain 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 4 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. Financial Escalation Analysis for the Decommissioning of Three Mile Island Unit 2, dated May 2009.*

  • Both documents were previously provided 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," dated March 29, 2010 (Accession Number ML100960464).

Attachment TMI-12-006 Page 3 of 13 Schedule 1 Metropolitan Edison Company 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 After-Tax Rate of Return 4.81%

6.03%

Qualified Trust Balance on December 31, 2011 Non-Qualified Trust Balance on December 31, 2011 Total Earnings1 308,298,782 308,298,782 Withdrawals 2,3 Beginning Balance Ending Balance Year 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 2036 2037 2038 2039 2040 2041 2042 2043 2044 2045 2046 Deposits 308,298,782 323,127,953 338,670,408 354,960,455 372,034,052 389,928,890 408,684,470 428,342,193 448,945,453 470,539,729 493,172,690 516,894,296 541,756,912 567,815,419 595,127,341 623,752,966 653,755,484 685,201,122 718,159,296 752,702,759 788,907,761 826,854,225 866,625,913 906,997,874 948,707,497 992,364,135 1,038,069,300 1,085,914,715 1,136,001,228 1,188,428,775 1,243,319,919 1,300,785,296 1,298,001,413 1,250,686,634 1,182,537,831 14,829,171 15,542,455 16,290,047 17,073,598 17,894,838 18,755,580 19,657,723 20,603,259 21,594,276 22,632,961 23,721,606 24,862,616 26,058,507 27,311,922 28,625,625 30,002,518 31,445,639 32,958,174 34,543,462 36,205,003 37,946,463 39,771,688 41,624,461 43,538,623 45,542,138 47,639,665 49,835,414 52,134,013 54,540,048 57,059,143 59,696,377 59,568,617 57,397,221 54,269,697 50,815,020 323,127,953 338,670,408 354,960,455 372,034,052 389,928,890 408,684,470 428,342,193 448,945,453 470,539,729 493,172,690 516,894,296 541,756,912 567,815,419 595,127,341 623,752,966 653,755,484 685,201,122 718,159,296 752,702,759 788,907,761 826,854,225 866,625,913 906,997,874 948,707,497 992,364,135 1,038,069,300 1,085,914,715 1,136,001,228 1,188,428,775 1,243,319,919 1,300,785,296 1,298,001,413 1,250,686,634 1,182,537,831 1,107,260,352 (1,252,500)

(1,829,000)

(1,885,500)

(1,934,500)

(1,990,000)

(2,047,500)

(2,112,500)

(2,168,000)

(2,231,000)

(62,352,500)

(104,712,000)

(122,418,500)

(126,092,500)

Attachment TMI-12-006 Page 4 of 13 2047 2048 2049 2050 2051 2052 2053 2054 1,107,260,352 1,024,391,298 933,054,044 846,165,763 757,111,033 659,829,293 568,968,205 539,445,231 47,011,947 42,820,246 38,832,719 34,745,769 30,281,260 26,111,412 24,756,527 24,454,652 (129,881,000)

(134,157,500)

(125,721,000)

(123,800,500)

(127,563,000)

(116,972,500)

(54,279,500)

(31,032,500) 1,024,391,298 933,054,044 846,165,763 757,111,033 659,829,293 568,968,205 539,445,231 532,867,384 Total (1,276,433,500)

Note 1: The earnings are calculated using the estimated After-Tax rate of return.

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

Note 3: The estimated escalation rate has been applied to the withdrawals.

Attachment TMI-12-006 Page 5 of 13 Schedule 2 Pennsylvania Electric Company 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 After-Tax Rate of Return 4.81%

6.03%

Qualified Trust Balance on December 31, 2011 Non-Qualified Trust Balance on December 31, 2011 Total Earnings 1 135,679,263 29,438,162 165,117,425 Withdrawals2,3 Beginning Balance Ending Balance Year 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 2036 2037 2038 2039 2040 2041 2042 2043 2044 2045 2046 Deposits 165,117,425 173,059,573 181,383,739 190,108,296 199,252,505 208,836,551 218,881,589 229,409,794 240,444,405 252,009,780 264,131,451 276,836,174 290,151,994 304,108,305 318,735,914 334,067,111 350,135,740 366,977,269 384,628,875 403,129,524 422,520,054 442,843,269 464,144,030 485,812,985 508,222,102 531,679,489 556,239,498 581,951,758 608,870,646 637,050,268 666,556,245 697,448,445 698,319,888 677,034,751 645,446,708 7,942,148 8,324,165 8,724,558 9,144,209 9,584,046 10,045,038 10,528,204 11,034,611 11,565,376 12,121,670 12,704,723 13,315,820 13,956,311 14,627,609 15,331,197 16,068,628 16,841,529 17,651,607 18,500,649 19,390,530 20,323,215 21,300,761 22,295,205 23,323,617 24,400,137 25,527,259 26,707,260 27,942,637 29,235,872 30,589,977 32,007,700 32,047,693 31,070,863 29,621,207 28,013,462 (626,250)

(914,500)

(942,750)

(967,250)

(995,000)

(1,023,750)

(1,056,250)

(1,084,000)

(1,115,500)

(31,176,250)

(52,356,000)

(61,209,250)

(63,046,250) 173,059,573 181,383,739 190,108,296 199,252,505 208,836,551 218,881,589 229,409,794 240,444,405 252,009,780 264,131,451 276,836,174 290,151,994 304,108,305 318,735,914 334,067,111 350,135,740 366,977,269 384,628,875 403,129,524 422,520,054 442,843,269 464,144,030 485,812,985 508,222,102 531,679,489 556,239,498 581,951,758 608,870,646 637,050,268 666,556,245 697,448,445 698,319,888 677,034,751 645,446,708 610,413,920

Attachment TMI-12-006 Page 6 of 13 2047 2048 2049 2050 2051 2052 2053 2054 610,413,920 571,710,691 528,904,737 488,460,965 447,078,286 401,733,361 359,757,297 348,616,451 26,237,271 24,272,796 22,416,728 20,517,570 18,436,575 16,510,186 15,998,904 16,022,120 (64,940,500)

(67,078,750)

(62,860,500)

(61,900,250)

(63,781,500)

(58,486,250)

(27,139,750)

(15,516,250) 571,710,691 528,904,737 488,460,965 447,078,286 401,733,361 359,757,297 348,616,451 349,122,321 Total (638,216,750)

Note 1: The earnings are calculated using the estimated After-Tax rate of return.

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

Note 3: The estimated escalation rate has been applied to the withdrawals.

Attachment TM1-12-006 Page 7 of 13 Schedule 3 Jersey Central Power & Light Company Reflects 25% ownership in Three Mile Island Nuclear Station, Unit 2 Estimated Weighted Average Net Investment Rate Estimated Escalation Rate Estimated After-Tax Rate of Return Qualified Trust Balance on December 31, 2011 Non-Qualified Trust Balance on December 31, 2011 After-Tax 2.00%

2.81%

4.81%

Pre-Tax Equivalent 6.03%

183,653,355 7,687,103 191,340,458 Total Beginning Balance Year 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 2036 2037 2038 2039 2040 2041 2042 2043 2044 2045 2046 Deposits Earnings 1

Withdrawals2,3 Ending Balance 191,340,458 200,543,934 210,190,097 220,300,241 230,896,683 242,002,813 253,643,148 265,843,384 278,630,450 292,032,575 306,079,342 320,801,758 336,232,323 352,405,098 369,355,783 387,121,796 405,742,354 425,258,562 445,713,498 467,152,318 489,622,344 513,173,179 537,856,809 563,071,349 589,196,593 616,548,853 645,191,078 675,181,909 706,585,167 739,464,858 773,896,977 809,952,266 816,235,143 800,621,729 774,978,220 9,203,476 9,646,163 10,110,144 10,596,442 11,106,130 11,640,335 12,200,235 12,787,067 13,402,125 14,046,767 14,722,416 15,430,565 16,172,775 16,950,685 17,766,013 18,620,558 19,516,207 20,454,937 21,438,819 22,470,026 23,550,835 24,683,630 25,840,790 27,039,744 28,295,010 29,609,475 30,985,831 32,427,007 33,935,941 35,516,119 37,170,789 37,459,126 36,742,587 35,565,740 34,243,928 200,543,934 210,190,097 220,300,241 230,896,683 242,002,813 253,643,148 265,843,384 278,630,450 292,032,575 306,079,342 320,801,758 336,232,323 352,405,098 369,355,783 387,121,796 405,742,354 425,258,562 445,713,498 467,152,318 489,622,344 513,173,179 537,856,809 563,071,349 589,196,593 616,548,853 645,191,078 675,181,909 706,585,167 739,464,858 773,896,977 809,952,266 816,235,143 800,621,729 774,978,220 746,175,897 (626,250)

(914,500)

(942,750)

(967,250)

(995,000)

(1,023,750)

(1,056,250)

(1,084,000)

(1,115,500)

(31,176,250)

(52,356,000)

(61,209,250)

(63,046,250)

Attachment TMI-12-006 Page 8 of 13 2047 2048 2049 2050 2051 2052 2053 2054 746,175,897 714,002,820 678,041,118 644,770,805 610,906,629 573,441,848 539,724,962 537,240,561 32,767,423 31,117,048 29,590,188 28,036,074 26,316,719 24,769,364 24,655,349 25,094,939 (64,940,500)

(67,078,750)

(62,860,500)

(61,900,250)

(63,781,500)

(58,486,250)

(27,139,750)

(15,516,250) 714,002,820 678,041,118 644,770,805 610,906,629 573,441,848 539,724,962 537,240,561 546,819,250 Total (638,216,750)

Note 1: The earnings are calculated using the estimated After-Tax rate of return.

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

Note 3: The estimated escalation rate has been applied to the withdrawals.

Attachment TMI-12-006 Page 9 of 13 Schedule 4 FirstEnergy Corp. Consolidated Three Mile Island Nuclear Station, Unit 2 After-Tax Estimated Weighted Average Net Investment Rate 2.00%

Estimated Escalation Rate 2.81%

Estimated After-Tax Rate of Return 4.81%

Pre-Tax Equivalent 6.03%

Qualified Trust Balance on December 31, 2011 Non-Qualified Trust Balance on December 31, 2011 Total Earnings1 627,631,400 37,125,265 664,756,665 Withdrawals2'3 Beginning Balance Ending Balance Year 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 2036 2037 2038 2039 2040 2041 2042 2043 2044 2045 2046 Deposits 664,756,665 696,731,461 730,244,244 765,368,992 802,183,240 840,768,254 881,209,207 923,595,370 968,020,308 1,014,582,084 1,063,383,483 1,114,532,228 1,168,141,228 1,224,328,821 1,283,219,038 1,344,941,873 1,409,633,578 1,477,436,953 1,548,501,670 1,622,984,600 1,701,050,160 2,870,672 1,868,626,752 1,955,882,208 2,046,126,192 2,140,592,477 2,239,499,876 2,343,048,382 2,451,457,040 2,564,943,901 2,683,773,141 2,808,186,007 2,812,556,444 2,728,343,114 2,602,962,758 31,974,796 33,512,783 35,124,748 36,814,249 38,585,014 40,440,953 42,386,163 44,424,937 46,561,777 48,801,398 51,148,746 53,609,000 56,187,593 58,890,216 61,722,836 64,691,704 67,803,375 71,064,717 74,482,930 78,065,559 81,820,513 85,756,079 89,760,456 93,901,984 98,237,285 102,776,399 107,528,506 112,503,658 117,711,861 123,165,240 128,874,866 129,075,436 125,210,671 119,456,644 113,072,410 696,731,461 730,244,244 765,368,992 802,183,240 840,768,254 881,209,207 923,595,370 968,020,308 1,014,582,084 1,063,383,483 1,114,532,228 1,168,141,228 1,224,328,821 1,283,219,038 1,344,941,873 1,409,633,578 1,477,436,953 1,548,501,670 1,622,984,600 1,701,050,160 1,782,870,672 1,868,626,752 1,955,882,208 2,046,126,192 2,140,592,477 2,239,499,876 2,343,048,382 2,451,457,040 2,564,943,901 2,683,773,141 2,808,186,007 2,812,556,444 2,728,343,114 2,602,962,758 2,463,850,168 (2,505,000)

(3,658,000)

(3,771,000)

(3,869,000)

(3,980,000)

(4,095,000)

(4,225,000)

(4,336,000)

(4,462,000)

(124,705,000)

(209,424,000)

(244,837,000)

(252,185,000)

Attachment TMI-12-006 Page 10 of 13 2047 2048 2049 2050 2051 2052 2053 2054 2,463,850,168 2,310,104,809 2,139,999,899 1,979,397,534 1,815,095,947 1,635,004,502 1,468,450,464 1,425,302,243 106,016,641 98,210,090 90,839,635 83,299,413 75,034,554 67,390,962 65,410,779 65,571,711 (259,762,000)

(268,315,000)

(251,442,000)

(247,601,000)

(255,126,000)

(233,945,000)

(108,559,000)

(62,065,000) 2,310,104,809 2,139,999,899 1,979,397,534 1,815,095,947 1,635,004,502 1,468,450,464 1,425,302,243 1,428,808,955 Total (2,552,867,000)

Note 1: The earnings are calculated using the estimated After-Tax rate of return.

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

Note 3: The estimated escalation rate has been applied to the withdrawals.

Attachment TMI-12-006 Page 11 of 13 Decommissionina Analysis Based on NRC Formula

1. The minimum decommissioning fund estimate, pursuant to 10 CFR 50.75(b) and (c) (see Schedule 5):

Metropolitan Edison Company

$232,034,358 Pennsylvania Electric Company 116,017,180 Jersey Central Power & Light Company 116,017,180 FirstEnergy Corp. Consolidated

$464,068,718

2. The amount accumulated in external trust funds at December 31, 2011:

After Tax Metropolitan Edison Company

$308,298,782 Pennsylvania Electric Company 165,117,425 Jersey Central Power & Light Company 191,340,458 FirstEnergy Corp. Consolidated

$664,756,665

3. There are no longer any funds to be collected from the ratepayers.
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%

Estimated Net Investment Rate 2.00%

Year of Site Restoration Completion 2054 Dormancy Period Early 2034 - Mid-2043 Year of Three Mile Island Nuclear Station, Unit 1 Operating 2034 License Termination An additional assumption is that 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-12-006 Page 12 of 13

7. There were no amendments to the Trust Agreements for the above-mentioned owners of Three Mile Island Nuclear Station, Unit 2.
8. Mathematical rounding was performed during the development of the supporting calculations.

Attachment TMI-12-006 Page 13 of 13 Schedule 5 FIRSTENERGY CORP.

Calculation of Minimum Financial Assurance Amount December 31, 2011 THREE MILE ISLAND NUCLEAR STATION, UNIT 2 Pennsylvania Reaions Labor (L) = Northeast Energy (E) = National Waste Burial (B) = Generic For PWR Unit Adjustment Factor1 Escalation Factor Ratio LB E=

B=

2.510 2.580 12.280 0.65 0.13 0.22 1.632 0.335 2.702 4.669

+ 0.0088P) million PWR Escalation Factor =

Base Amount for PWR between 1200 MWt and 3400 MWt = ($75 (P = power level in megawatts thermal = 2772)

($75 + 0.0088(2772)) million =

Escalated Amount for unit =

99,393,600 x

Owner/Licensee Pennsylvania Electric Company Jersey Central Power & Light Company Metropolitan Edison Company FirstEnergy Corp. Consolidated

$99,393,600 4.669

$464,068,718 Ownership 25%

25%

$116,017,180

$116,017,180 50%

$232,034,358 100%

$464,068,718 Note 1: Actual fourth quarter 2011 Bureau of Labor Statistics data used to develop Labor factor, preliminary December 2011 Bureau of Labor Statistics data used to develop Energy Factor, and Burial factor is based on NUREG-1307, "Report on Waste Burial Charges: Changes in Decommissioning Waste Disposal Costs at Low-Level Waste Burial Facilities," Revision 14 data.

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