TMI-14-015, Decommissioning Funding Status Report

Decommissioning Funding Status Report

ML14090A403
Person / Time
Site:	Crane
Issue date:	03/28/2014
From:	Harden P GPU Nuclear
To:	Document Control Desk, NRC/FSME
References
TMI-14-015
Download: ML14090A403 (9)

Text

(T4PU NUCLEAR GPU Nuclear, Inc.

Three Mile bland Nuclear Station Route 441 South Post Office Box 480 Middletown, PA 17057-0480 Tel 717-948-8461 10 CFR 50.75 10 CFR 50.82 March 28, 2014 TMI-14-015 ATTN: Document Control Desk U.S. 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 and 10 CFR 50.82, GPU Nuclear, Inc. is hereby submitting three (3) reports to the Nuclear Regulatory Commission (NRC) for Three Mile Island Nuclear Station, Unit 2 for the year ending December 31, 2013. Attachment 1 provides a decommissioning funding status report based on the Nuclear Regulatory Commission (NRC) formula described in 10 CFR 50.75(b) and (c). Attachment 2 provides a decommissioning funding status report based upon a site specific decommissioning cost estimate. Attachment 3 contains a financial assurance status report as required by 10 CFR 50.82(a)(8)(v).

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) 315-6810.

Sincerel Paul A. Harden President Attachments:

1. Three Mile Island Nuclear Station, Unit 2 Decommissioning Funding Status Report - NRC Formula

2. Three Mile Island Nuclear Station, Unit 2 Decommissioning Funding Status Report - Site Specific Cost Estimate

3. Three Mile Island Nuclear Station, Unit 2 Financial Assurance Status Report cc: NRC Region I Administrator NRC Project Manager NRC Resident Inspector 5c:4L. 2..

TMI-14-015 Three Mile Island Nuclear Station, Unit 2 Decommissioning Funding Status Report - NRC Formula Page 1 of 3 This report reflects the FirstEnergy Corp. subsidiary ownership interest in the Three Mile Island Nuclear Station, Unit 2 as of December 31, 2013.

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

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

$252,211,260 126,105,630 126,105,630

$504,422,520

2. The amount accumulated in external trust funds at December 31, 2013:

After Tax Metropolitan Edison Company

$322,856,427 Pennsylvania Electric Company 173,895,946 Jersey Central Power & Light Company 200,969,313 FirstEnergy Corp. Consolidated

$697,721,686

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 Expiration 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.

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.

TMI-14-015 Page 2 of 3

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.

TMI-14-015 Page 3 of 3 Schedule 1 FIRSTENERGY CORP.

Calculation of Minimum Financial Assurance Amount December 31, 2013 THREE MILE ISLAND NUCLEAR STATION, UNIT 2 Pennsylvania Regions Labor (L) = Northeast Energy (E) = National Waste Burial (B) = Generic For PWR Unit Adjustment Factor1 2.594 2.568 13.885 Ratio 0.65 0.13 0.22 Escalation Factor2 1.686 0.334 3.055 PWR Escalation Factor =

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

($75 + 0.0088(2772)) million =

MWt = ($75 + 0.0088P) million

$99,393,600

=

$504,422,520 Escalated Amount for unit2 =

99,393,600 x

Owner/Licensee Pennsylvania Electric Company Jersey Central Power & Light Company Metropolitan Edison Company FirstEnergy Corp. Consolidated 5.075 Ownership 25%

25%

$126,105,630

$126,105,630

$252,211,260 50%

100%

$504,422,520 Note 1: Actual fourth quarter 2013 Bureau of Labor Statistics data used to develop Labor factor, actual December 2013 Bureau of Labor Statistics data used to develop Energy factor, and Burial factor is contained in NUREG-1307, "Report on Waste Burial Charges: Changes in Decommissioning Waste Disposal Costs at Low-Level Waste Burial Facilities," Revision 15 which is based upon 2012 data.

Note 2: Mathematical rounding was performed during the development of the supporting calculations.

TMI-14-015 Three Mile Island Nuclear Station, Unit 2 Decommissioning Funding Status Report - Site Specific Decommissioning Cost Estimate Page 1 of 4

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 2013 dollars:

Radiological Non-Radiological FirstEnergy Corp. Consolidated

$934,961,507 35,490,095

$970,451,602 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, 2013:

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

$322,856,427 173,895,946 200,969,313

$697,721,686

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.

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.

TM1-14-015 Page 2 of 4

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

8. Schedule 1 contains a consolidated analysis for FirstEnergy Corp. of funding earnings and withdrawals for Three Mile Island Nuclear Station, Unit 2.

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*

• Previously provided in GPU Nuclear, Inc. letter to Nuclear Regulatory Commission (NRC),

dated March 29, 2010,

Subject:

Decommissioning Funding Status Report for the Three Mile Island Nuclear Station, Unit 2 (Accession No. ML100960464).

TMI-14-015 Page 3 of 4 Schedule 1 FirstEnergy Corp. Consolidated Three Mile Island Nuclear Station, Unit 2 After - Tax Estimated Estimated Estimated Net Investment Rate Escalation Rate AfterTax Rate of Return 2.00%

2.81%

4.81%

Pre Tax Equivalent 6.03%

Qualified Trust Balance on December 31, 2013 Non-Qualified Trust Balance on December 31, 2013 Total 697,699,517 22,169 697,721,686 Year 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 Beginning Balance 697,721,686 731,282,099 766,456,768 803,323,339 841,963,191 882,461,621 924,908,025 969,396,101 1,016,024,053 1,064,894,810 1,116,116,250 1,169,801,442 1,226,068,891 1,285,042,805 1,346,853,364 1,411,637,011 1,479,536,751 1,550,702,469 1,625,291,257 1,703,467,767 1,785,404,567 1,868,657,036 1,954,705,489 2,044,774,438 2,139,072,990 2,237,790,963 2,341,136,738 2,449,317,193 2,562,584,788 2,681,168,495 2,679,429,389 2,588,812,648 Deposits Earnings1 33,560,413 35,174,669 36,866,571 38,639,853 40,498,429 42,446,404 44,488,076 46,627,952 48,870,757 51,221,440 53,685,192 56,267,449 58,973,914 61,810,559 64,783,647 67,899,740 71,165,718 74,588,789 78,176,509 81,936,800 85,757,469 89,706,454 93,839,949 98,167,552 102,697,973 107,440,776 112,405,455 117,603,595 123,045,706 122,965,894 118,807,259 112,745,229 Withdrawal 2.3 (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)

Ending Balance 4

731,282,099 766,456,768 803,323,339 841,963,191 882,461,621 924,908,025 969,396,101 1,016,024,053 1,064,894,810 1,116,116,250 1,169,801,442 1,226,068,891 1,285,042,805 1,346,853,364 1,411,637,011 1,479,536,751 1,550,702,469 1,625,291,257 1,703,467,767 1,785,404,567 1,868,657,036 1,954,705,489 2,044,774,438 2,139,072,990 2,237,790,963 2,341,136,738 2,449,317,193 2,562,584,788 2,681,168,495 2,679,429,389 2,588,812,648 2,456,720,877 TMI-14-015 Page 4 of 4 Schedule 1 (Continued)

Year 2046 2047 2048 2049 2050 2051 2052 2053 2054 Beginning Balance 2,456,720,877 2,310,574,052 2,149,456,112 1,971,623,999 1,802,922,754 1,630,132,730 1,441,144,554 1,265,265,852 1,212,344,452 Deposits Earnings1 106,038,176 98,644,060 90,482,887 82,740,754 74,810,976 66,137,824 58,066,299 55,637,600 55,328,442 Withdrawal2,3 (252,185,000)

(259,762,000)

(268,315,000)

(251,442,000)

(247,601,000)

(255,126,000)

(233,945,000)

(108,559,000)

(62,065,000)

(2,552,867,000)

Ending Balance 4

2,310,574,052 2,149,456,112 1,971,623,999 1,802,922,754 1,630,132,730 1,441,144,554 1,265,265,852 1,212,344,452 1,205,607,893 TOTAL Notes:

1. The earnings are calculated using the estimated after-tax rate of return.

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.

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

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

TMI-14-015 Three Mile Island Nuclear Station, Unit 2 Financial Assurance Status Report Page 1 of 1

1. Formal decommissioning has not started at the Three Mile Island Nuclear Station, Unit 2.

A special disbursement of decommissioning trust funds occurred in 2005 for $416,400.00.

Notification of this use of decommissioning funds was made to the NRC by letter dated February 1, 2005 (Accession No. ML050380143). No funds were spent on decommissioning activities in 2013.

2. Decommissioning funds estimated to be required are based upon a site specific decommissioning cost study, Decommissioning Cost Analysis for Three Mile Island Unit 2, dated January 2009, and escalated to 2013 dollars:

Radiological

$934,961,507 Non-Radiological 35,490,095 FirstEnergy Corp. Consolidated

$970,451,602 The estimated total decommissioning costs escalated to future year dollars (2034 - 2054) is $2,552,867,000.

3. The amount accumulated in external trust funds as of December 31, 2013:

After Tax Metropolitan Edison Company

$322,856,427 Pennsylvania Electric Company 173,895,946 Jersey Central Power & Light Company 200,969,313 FirstEnergy Corp. Consolidated

$697,721,686

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

5. There were no amendments to the trust agreements for the above-mentioned owners of Three Mile Island Nuclear Station, Unit 2.

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

7.

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*

• Previously provided in GPU Nuclear, Inc. letter to Nuclear Regulatory Commission (NRC),

dated March 29, 2010,

Subject:

Decommissioning Funding Status Report for the Three Mile Island Nuclear Station, Unit 2 (Accession No. ML100960464).