TMI-16-008, Decommissioning Funding Status Report

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Decommissioning Funding Status Report
ML16083A386
Person / Time
Site: Three Mile Island Constellation icon.png
Issue date: 03/23/2016
From: Halnon G
GPU Nuclear
To:
Document Control Desk, Office of Nuclear Material Safety and Safeguards
References
TMI-16-008
Download: ML16083A386 (10)


Text

GPUNuclear, Inc.

ThreeMilelsland luuct gAfr Nuclear Station Route441South PostOfficeBox480 Middletown,PA17057-0480 Tel717-948-8461 March23,2016 TMt-16-008 10cFR50.75 10cFR50.82 ATTN:Document ControlDesk U.S.NuclearRegulatory Commission Washington, D.C.20555-0001

SUBJECT:

ThreeMilelslandNuclearStation,Unit2 DocketNo.50-320,LicenseNo. DPR-73 Decommissionino FundinqStatusReportfor theThreeMilelslandNuclear Station.Unit2 Pursuant to 10CFR50.75and10CFR50.82,GPUNuclear, Inc.is herebysubmitting the followingthreereports to theNuclear Regulatory Commission (NRC)forThreeMilelsland NuclearStation, Unit2 forthe year endingDecember 31,2015. Attachment 1 provides a decommissioning funding statusreportbasedontheNRCformula described in

'10CFR50.75(c).Attachment 2 provides a decommissioning funding status report based upona site-specificdecommissioning costestimate.Attrachment 3 containsa financial assurance statusreportas requiredby 10CFR50.82(a)(8)(v).

Thereareno regulatory commitments containedin thisletter.lf thereareanyquestions or if additionalinformationis required, -

pleasecontactMr.ThomasA. Lentz,Manager FirstEnergy Nuclear Operating Company at (330)315-6810.

FleetLicensing, Sincerely, 4##

President Halnon

ThreeMilelslandNuclearStation.Unit2 TMt-16-008 Page2 Attrachments:

FundingStatusReport- NRC

1. ThreeMilelslandNuclearStation,Unit2 Decommissioning Formula FundingStatusReport-2 . ThreeMilelslandNuclearStation,Unit2 Decommissioning Site-Specific Decommissioning CostEstimate 3 . ThreeMilelslandNuclearStation,Unit2 Financial StatusReport Assurance cc: NRCRegionI Administrator NRCProjectManager NRCResidentInspector

Attachment1 TMt-16-008 ThreeMilelslandNuclearStation,Unit2 Decommissioning Funding StatusReport- NRCFormula Page1 of 3 This reportreflectsthe FirstEnergyCorp.subsidiaryownershipinterestsin the ThreeMile lslandNuclearStation,Unit2 as of December 31,2015.

1. The minimumdecommissioning fundestimate,pursuantto10 CFR50.75(b)and (c) (see Schedule1):

Metropolitan EdisonCompany $250,670,659 Pennsylvania ElectricCompany 125,335,330 JerseyCentralPower& LightCompany 125.335.329 FirstEnergy Corp.Consolidated $501,341,318

2. Theamountaccumulated in externaltrustfundsas of December 31,2015.

AfterTax Metropolitan EdisonCompany $324,050,034 Pennsylvania ElectricCompany 173,371,4'13 JerseyCentralPower& LightCompany 204,368.945 FirstEnergy Corp.Consolidated $701,790,392

3. Thereare no longeranyfundsto be collected fromthe ratepayers.
4. The assumptions usedregarding escalation in decommissioning cost,ratesof earnings on decommissioning funds,and ratesof otherfactorsusedin fundingprojections:

Consolidated Ownership Interestin Unit 100%

EstimatedNet Investment Rate 2.jQo/o Yearof SiteRestoration Completion 2053 Yearof ThreeMilelslandNuclearStation,Unit1 endof license 2034 Thedecommissioning forThreeMib lslandNuclearStation,Unit2 areplanned activities to commence afterthe shutdownof ThreeMilelslandNuclearStation,Unit1. ThreeMile lslandNuclearStation,Unit2 transitions froma Post-Defueling Monitored Storagestatus to decommissioning in 2040.

5 . Thereare no contractsuponwhichthe owners/licensees are relyingpursuantto 10CFR50.75(eX1Xv).

6 . Thereare no modifications to the licensee's currentmethodof providing financial assurance sincethe lastsubmittedreport.

TMt-16-008 Page2 of 3 7 . Therewereno amendments to the trustagreements for the above-mentionedownersof ThreeMilelslandNuclearStation,Unit2.

8 . Mathematical was performed rounding duringthe development of the supporting calculations.

TMt-16-008 Page3 of 3 Schedule1 FIRSTENERGY GORP.

Calculation of MinimumFinancial Assurance Amount December 31,2015 THREEMILEISLANDNUCLEAR STATION, UNIT2 Pennsvlvania Regions Labor(L) = Northeast Energy(E)= National WasteBurial(B) = Generic For PWRUnit Adjustment Escalation Factor Ratio Factorl f- = 2.71 0.65 1.76 f = 1.759 0.13 0.229

$= 13.885 0.22 3.055 PWREscalation Factor= 5.044 BaseAmountfor PWRbetween1200MWtand3400MWt= ($ZS+ 0.0088P)million (P = powerlevelin megawatts thermal= 2772)

($ZS+ 0.0088(2772)) million= $99,393,600 EscalatedAmountfor unitl=

99,393,600 x 5.044 $501,341,318 Owner/Licenseel Ownership Pennsylvania ElectricCompany 25o/o $125,335,330 JerseyCentralPower& Light Company 25o/o $125,335,329 MetropolitanEdisonCompany 50o/o $250.670,659 FirstEnergyCorp.Consolidated 100o/o $501,341,318 Note1: Mathematical roundingwasperformed of thesupporting duringthedevelopment calculations.

Attachment2 TMt-16-008 ThreeMilelslandNuclearStation,Unit2 Decommissioning Funding StatusReport Site-Specific Decommissioning CostEstimate P a g e1 o f 4

1. Decommissioning fundsestimated to be requiredpursuantto 10 CFR50.75(b)and(c)are basedupona site-specific decommissioning cost study,Decommissioning CostAnalysis for ThreeMile IslandUnit2. datedDecember2014,and escalatedto 2015dollars:

NRCLicenseTermination $1,204,A22,000

2. Theamountaccumulated in external trustfundsas of December 31,2015:

AfterTax Metropolitan EdisonCompany $324,050,034 Pennsylvania Electric Company 173,371,413 JerseyCentralPower& LightCompany 204.368.945 FirstEnergy Corp.Consolidated $701,790,392

3. Thereare no longeranyfundsto be collected fromthe ratepayers.
4. The assumptions usedregarding escalation in decommissioning cost,ratesof earnings on decommissioning funds,and ratesof otherfactorsusedin fundingprojections.

Consolidated Ownership Interestin Unit 100o/o Estimated Rateof Escalation in Decommissioning Costs 0.00%

EstimatedAfter-TaxRateof Return 2.00o/o Yearof SiteRestoration Completion 2053 Yearof ThreeMilelslandNuclearStation,Unit1 endof license 2034 Thedecommissioning activitiesforThreeMilelslandNuclearStation,Unit2 areplanned to commence afterthe shutdownof ThreeMilelslandNuclearStation,Unit1. ThreeMile lslandNuclearStation,Unit2 transitions froma Post-Defueling Monitored Storagestatus to decommissioning in 2040.

Alf costare basedon a site-specific decommissioning coststudy,Decommissioning Cosf Analysisfor ThreeMile lslandUnit2, datedDecember2014 (2013 then dollars),

escafatedto 2015dollarsusingan escalation as documented factorof 2.77o/o in EscalationAnalysisfor ThreeMilelslandUnit2, datedFebruary2015.

5 . Thereare no contractsuponwhichthe owners/licensees are relyingpursuantto 10cFR 50.75(eX1Xv).

6 . Thereare no modifications to the licensee's currentmethodof providing financial assurance sincethe lastsubmitted report.

TMt-16-008 Page2 of 4 7 . Therewereno amendments to the trustagreements for the above-mentioned ownersof ThreeMilelslandNuclearStation,Unit2.

8 . Site-Specific CostAnalysisAssumptions 10 CFR50.75(eX1Xi), states,in part,that:

A licenseethathasprepaidfundsbasedon a site-specific estimateunder 50.75(b)(1) of thissectionmaytakecreditfor projected earningson the prepaiddecommissioning trustfunds,usingup to a 2 percentannualreal rateof returnfromthe timeof futurefunds'collectionthroughthe projected decommissioning period,providedthatthe site-specificestimateis basedon a period of safestoragethatis specifically describedin the estimate.

In accordance withRegulatory Guide1.159,Revision 2, afacilityspecificanalysismaybe usedto demonstrate the adequacyof decommissioning funds,providedthat:

NRC-required costestimatefor decommissioning costs,as definedin 10 CFR50.2,is equalto orgreaterthan theamountstatedin theformulas in 10CFR50.75(cX1) and(2).

Thesite-specific radiologicaldecommissioning costestimateis $1,204,022,000 whichis greaterthan the 10 CFR50.75(c) costestimate of $501,341,318.Theanalysis assumesa 2 percentyearlyrateof return.The analysisalsoassumesa periodof safestorage.The cashflowswerecontainedin a decommissioning costestimatethatwas preparedfor ThreeMilelslandNuclearStation,Unit2. Thecashflowanalysisassumestheyearly expensesare incurredat the beginning of year.

Schedule1 providesthe site-specific analysis.Theanalysisvaluesare in 2015dollars.

Theanalysisincludesthe radiological costs.

9 . Mathematical roundingwas performed duringthe development of the supporting calculations.

10.

References:

A. Decommissioning Cosf Analysisfor ThreeMilelslandUnit2, December2014 (Accession No.ML15086A337)

B . Escalation Analysisfor ThreeMile lslandUnit2 2013Stfe-Specific Decommissioning Cosf Estimate. February2015(AccessionNo. ML15086A337)

TMr-16-008 Page3 of 4 Schedule1 FIRSTENERGY CORP.

FundingAnalysis December31,2015 THREEMILE ISLANDNUCLEARSTATION,UNIT2 After-Tax EstimatedNetInvestment Rate 2.00o/o EstimatedEscalationRate 0.00%

EstimatedAfter-TaxRateof Return 2.00o/o TrustBalanceon December Qualified 31,2015 $701,790,392 Non-Qualified TrustBalanceon December 31,2015 Total $701,790,392 Beginning Ending Year Balance Deposits Earninqs Withdrawall'2 Balance 2016 701,790,392 13,971,508 (3.215.000) 712,546,900 2017 712,546,900 14,186,798 (3,207,000) 723,526,698 2018 723,526,699 14.406.394 (3,207,000) 734.726.092 2019 734.726.092 14.630.382 (3,207,000) 746,149,474 2020 746,149,474 14,858,689 rc.215.000) 757,793,163 2021 757,793,163 15,091,723 (3.207.000) 769.677.886 2022 769.677.886 15.329.418 (3,207,000) 781.800,304 2023 781,800,304 15.571.866 (3,207,000) 794,165,170 2024 794,165,170 15,819,003 8.215.000) 806,769,174 2025 806,769,174 16,071 ,243 (3.207.000) 819,633,417 2026 819,633,417 16,328,528 (3.207,000) 832.754.945 2027 832.754.945 16.590.959 (3,207,000) 846.138.904 2028 846.138.904 16,858,478 rc,215,000) 859.782.382 2029 859,782,382 1 7 , 1 3, 1 508 (3.207.000) 873,706,890 2030 873,706,890 17.409.998 (3,207,000) 997,909,888 2031 887.909.888 17,694,058 (3,207,000) 902.396,946 2032 902.396.946 17,983,639 8.215.000) 917,165,584 2033 917,165,584 18.279j72 (3.207.000) 932,237,756 2034 932,237,756 18.580.615 (3,207,000) 947,611,371 2035 947.611.371 18.888,087 (3,207,000) 963,292,459 2036 963.292.459 19,201,549 8.215.000) 979,279,008 2037 979,279,008 19,521,440 (3,207,000) 995,593,448 TMt-16-008 Page4 of 4 Schedule1 (Continued)

Beginning Ending Year Balance Deposits Earninqs Withdrawall'2 Balance 2038 995,593,448 19,847,729 (3,207,000) 1,012,234,177 2039 1,012,234,177 20,180,544 (3,207,000) 1,029,207,721 2040 1,029,207,721 19,469,854 (55,715,000) 992,962,575 2041 992.962.575 18.023,231 (91,801,000) 919,184,806 2042 919,184,806 16,043,496 ( 1 7 , 0 1 0 , 0 0 0 ) 818,218,303 2043 818,218,303 14,024,166 (117,010,000) 715,232,469 2044 715,232,469 11,958,049 (117,330,000) 609,860,518 2045 609.860.518 9.857.010 (117,010,000) 502,707,528 2046 502.707,528 7.989.051 (103,255,000) 407,441,579 2047 407,441,579 6,605,532 ft7.165,000) 3 3 6 , 8 8 2 . 111 2048 336,882,111 5,190,122 f7.376.000) 264,696,233 2049 264.696.233 3.750.625 (77,165,000) 191.281.857 2050 191.281.857 2.282.337 u7,165,000) 1 1 6 . 3 9 9 , 1 9 5 2051 116,399,195 835.224 (74.638.000) 42.596,418 2052 42,596,418 425,408 (21.326.000) 21,695,827 2053 21.695.827 373.117 (3,040,000) 19.028.943 (1,204,022,000)

Notes:

1. Withdrawalareassumedto be madeat the beginning of the period.
2. Therewereno fundswithdrawn fromthe decommissioning trustfundfor years2013, 2014,and2015.

Attachment 3 TMt-16-008 ThreeMilelslandNuclearStation,Unit2 Financial Assurance StatusReport Page1 of 1 1 . Formaldecommissioning hasnotstartedat theThreeMilelslandNuclearStation,Unit2.

A specialdisbursement of decommissioning trustfundsoccurredin 2005for $416,400.00.

Notification of this useof decommissioning fundswas madeto the NRCby letterdated February 1,2005(Accession No.ML050380143). Nofundswerespenton decommissioning activities in 2015.

2 . Decommissioning fundsestimated to be requiredarebasedupona site-specific decommissioning coststudy,Decommissioning CosfAnalysisfor ThreeMile IslandUnit2, datedDecember2014,andescalated to 2015dollars:

NRC LicenseTermination $1,204,022,000 As notedon Attachment2, Schedule1, FirstEnergy Corp.FundingAnalysisdated December 31. 2015.

3. Theamountaccumulated in external trustfundsas of December 31,2015:

AfterTax Metropolitan EdisonCompany $324,050,034 Pennsylvania Electric Company 173,371,413 JerseyCentralPower& LightCompany 204.368,945 FirstEnergy Corp.Consolidated $701.790.392 4 . Thereare no longeranyfundsto be collected fromthe ratepayers.

5 . Thereare no modifications to the licensee's currentmethodof providing financial assurance sincethe lastsubmittedreport.

6 . Therewereno amendments to thetrustagreements for the above-mentioned ownersof ThreeMib lslandNuclearStation,Unit2.

7 . Mathematical roundingwas performed duringthe development of the supporting calculations.

8.

References:

A. DecommissioningCosf Analysisfor Three Mile lsland Unit 2, December 2014 B. Escalation Analysisfor Three Mile lslandUnit 2 2013 Stfe-Specific DecommissioningCosf Estimate, February 2015

GPUNuclear, Inc.

ThreeMilelsland luuct gAfr Nuclear Station Route441South PostOfficeBox480 Middletown,PA17057-0480 Tel717-948-8461 March23,2016 TMt-16-008 10cFR50.75 10cFR50.82 ATTN:Document ControlDesk U.S.NuclearRegulatory Commission Washington, D.C.20555-0001

SUBJECT:

ThreeMilelslandNuclearStation,Unit2 DocketNo.50-320,LicenseNo. DPR-73 Decommissionino FundinqStatusReportfor theThreeMilelslandNuclear Station.Unit2 Pursuant to 10CFR50.75and10CFR50.82,GPUNuclear, Inc.is herebysubmitting the followingthreereports to theNuclear Regulatory Commission (NRC)forThreeMilelsland NuclearStation, Unit2 forthe year endingDecember 31,2015. Attachment 1 provides a decommissioning funding statusreportbasedontheNRCformula described in

'10CFR50.75(c).Attachment 2 provides a decommissioning funding status report based upona site-specificdecommissioning costestimate.Attrachment 3 containsa financial assurance statusreportas requiredby 10CFR50.82(a)(8)(v).

Thereareno regulatory commitments containedin thisletter.lf thereareanyquestions or if additionalinformationis required, -

pleasecontactMr.ThomasA. Lentz,Manager FirstEnergy Nuclear Operating Company at (330)315-6810.

FleetLicensing, Sincerely, 4##

President Halnon

ThreeMilelslandNuclearStation.Unit2 TMt-16-008 Page2 Attrachments:

FundingStatusReport- NRC

1. ThreeMilelslandNuclearStation,Unit2 Decommissioning Formula FundingStatusReport-2 . ThreeMilelslandNuclearStation,Unit2 Decommissioning Site-Specific Decommissioning CostEstimate 3 . ThreeMilelslandNuclearStation,Unit2 Financial StatusReport Assurance cc: NRCRegionI Administrator NRCProjectManager NRCResidentInspector

Attachment1 TMt-16-008 ThreeMilelslandNuclearStation,Unit2 Decommissioning Funding StatusReport- NRCFormula Page1 of 3 This reportreflectsthe FirstEnergyCorp.subsidiaryownershipinterestsin the ThreeMile lslandNuclearStation,Unit2 as of December 31,2015.

1. The minimumdecommissioning fundestimate,pursuantto10 CFR50.75(b)and (c) (see Schedule1):

Metropolitan EdisonCompany $250,670,659 Pennsylvania ElectricCompany 125,335,330 JerseyCentralPower& LightCompany 125.335.329 FirstEnergy Corp.Consolidated $501,341,318

2. Theamountaccumulated in externaltrustfundsas of December 31,2015.

AfterTax Metropolitan EdisonCompany $324,050,034 Pennsylvania ElectricCompany 173,371,4'13 JerseyCentralPower& LightCompany 204,368.945 FirstEnergy Corp.Consolidated $701,790,392

3. Thereare no longeranyfundsto be collected fromthe ratepayers.
4. The assumptions usedregarding escalation in decommissioning cost,ratesof earnings on decommissioning funds,and ratesof otherfactorsusedin fundingprojections:

Consolidated Ownership Interestin Unit 100%

EstimatedNet Investment Rate 2.jQo/o Yearof SiteRestoration Completion 2053 Yearof ThreeMilelslandNuclearStation,Unit1 endof license 2034 Thedecommissioning forThreeMib lslandNuclearStation,Unit2 areplanned activities to commence afterthe shutdownof ThreeMilelslandNuclearStation,Unit1. ThreeMile lslandNuclearStation,Unit2 transitions froma Post-Defueling Monitored Storagestatus to decommissioning in 2040.

5 . Thereare no contractsuponwhichthe owners/licensees are relyingpursuantto 10CFR50.75(eX1Xv).

6 . Thereare no modifications to the licensee's currentmethodof providing financial assurance sincethe lastsubmittedreport.

TMt-16-008 Page2 of 3 7 . Therewereno amendments to the trustagreements for the above-mentionedownersof ThreeMilelslandNuclearStation,Unit2.

8 . Mathematical was performed rounding duringthe development of the supporting calculations.

TMt-16-008 Page3 of 3 Schedule1 FIRSTENERGY GORP.

Calculation of MinimumFinancial Assurance Amount December 31,2015 THREEMILEISLANDNUCLEAR STATION, UNIT2 Pennsvlvania Regions Labor(L) = Northeast Energy(E)= National WasteBurial(B) = Generic For PWRUnit Adjustment Escalation Factor Ratio Factorl f- = 2.71 0.65 1.76 f = 1.759 0.13 0.229

$= 13.885 0.22 3.055 PWREscalation Factor= 5.044 BaseAmountfor PWRbetween1200MWtand3400MWt= ($ZS+ 0.0088P)million (P = powerlevelin megawatts thermal= 2772)

($ZS+ 0.0088(2772)) million= $99,393,600 EscalatedAmountfor unitl=

99,393,600 x 5.044 $501,341,318 Owner/Licenseel Ownership Pennsylvania ElectricCompany 25o/o $125,335,330 JerseyCentralPower& Light Company 25o/o $125,335,329 MetropolitanEdisonCompany 50o/o $250.670,659 FirstEnergyCorp.Consolidated 100o/o $501,341,318 Note1: Mathematical roundingwasperformed of thesupporting duringthedevelopment calculations.

Attachment2 TMt-16-008 ThreeMilelslandNuclearStation,Unit2 Decommissioning Funding StatusReport Site-Specific Decommissioning CostEstimate P a g e1 o f 4

1. Decommissioning fundsestimated to be requiredpursuantto 10 CFR50.75(b)and(c)are basedupona site-specific decommissioning cost study,Decommissioning CostAnalysis for ThreeMile IslandUnit2. datedDecember2014,and escalatedto 2015dollars:

NRCLicenseTermination $1,204,A22,000

2. Theamountaccumulated in external trustfundsas of December 31,2015:

AfterTax Metropolitan EdisonCompany $324,050,034 Pennsylvania Electric Company 173,371,413 JerseyCentralPower& LightCompany 204.368.945 FirstEnergy Corp.Consolidated $701,790,392

3. Thereare no longeranyfundsto be collected fromthe ratepayers.
4. The assumptions usedregarding escalation in decommissioning cost,ratesof earnings on decommissioning funds,and ratesof otherfactorsusedin fundingprojections.

Consolidated Ownership Interestin Unit 100o/o Estimated Rateof Escalation in Decommissioning Costs 0.00%

EstimatedAfter-TaxRateof Return 2.00o/o Yearof SiteRestoration Completion 2053 Yearof ThreeMilelslandNuclearStation,Unit1 endof license 2034 Thedecommissioning activitiesforThreeMilelslandNuclearStation,Unit2 areplanned to commence afterthe shutdownof ThreeMilelslandNuclearStation,Unit1. ThreeMile lslandNuclearStation,Unit2 transitions froma Post-Defueling Monitored Storagestatus to decommissioning in 2040.

Alf costare basedon a site-specific decommissioning coststudy,Decommissioning Cosf Analysisfor ThreeMile lslandUnit2, datedDecember2014 (2013 then dollars),

escafatedto 2015dollarsusingan escalation as documented factorof 2.77o/o in EscalationAnalysisfor ThreeMilelslandUnit2, datedFebruary2015.

5 . Thereare no contractsuponwhichthe owners/licensees are relyingpursuantto 10cFR 50.75(eX1Xv).

6 . Thereare no modifications to the licensee's currentmethodof providing financial assurance sincethe lastsubmitted report.

TMt-16-008 Page2 of 4 7 . Therewereno amendments to the trustagreements for the above-mentioned ownersof ThreeMilelslandNuclearStation,Unit2.

8 . Site-Specific CostAnalysisAssumptions 10 CFR50.75(eX1Xi), states,in part,that:

A licenseethathasprepaidfundsbasedon a site-specific estimateunder 50.75(b)(1) of thissectionmaytakecreditfor projected earningson the prepaiddecommissioning trustfunds,usingup to a 2 percentannualreal rateof returnfromthe timeof futurefunds'collectionthroughthe projected decommissioning period,providedthatthe site-specificestimateis basedon a period of safestoragethatis specifically describedin the estimate.

In accordance withRegulatory Guide1.159,Revision 2, afacilityspecificanalysismaybe usedto demonstrate the adequacyof decommissioning funds,providedthat:

NRC-required costestimatefor decommissioning costs,as definedin 10 CFR50.2,is equalto orgreaterthan theamountstatedin theformulas in 10CFR50.75(cX1) and(2).

Thesite-specific radiologicaldecommissioning costestimateis $1,204,022,000 whichis greaterthan the 10 CFR50.75(c) costestimate of $501,341,318.Theanalysis assumesa 2 percentyearlyrateof return.The analysisalsoassumesa periodof safestorage.The cashflowswerecontainedin a decommissioning costestimatethatwas preparedfor ThreeMilelslandNuclearStation,Unit2. Thecashflowanalysisassumestheyearly expensesare incurredat the beginning of year.

Schedule1 providesthe site-specific analysis.Theanalysisvaluesare in 2015dollars.

Theanalysisincludesthe radiological costs.

9 . Mathematical roundingwas performed duringthe development of the supporting calculations.

10.

References:

A. Decommissioning Cosf Analysisfor ThreeMilelslandUnit2, December2014 (Accession No.ML15086A337)

B . Escalation Analysisfor ThreeMile lslandUnit2 2013Stfe-Specific Decommissioning Cosf Estimate. February2015(AccessionNo. ML15086A337)

TMr-16-008 Page3 of 4 Schedule1 FIRSTENERGY CORP.

FundingAnalysis December31,2015 THREEMILE ISLANDNUCLEARSTATION,UNIT2 After-Tax EstimatedNetInvestment Rate 2.00o/o EstimatedEscalationRate 0.00%

EstimatedAfter-TaxRateof Return 2.00o/o TrustBalanceon December Qualified 31,2015 $701,790,392 Non-Qualified TrustBalanceon December 31,2015 Total $701,790,392 Beginning Ending Year Balance Deposits Earninqs Withdrawall'2 Balance 2016 701,790,392 13,971,508 (3.215.000) 712,546,900 2017 712,546,900 14,186,798 (3,207,000) 723,526,698 2018 723,526,699 14.406.394 (3,207,000) 734.726.092 2019 734.726.092 14.630.382 (3,207,000) 746,149,474 2020 746,149,474 14,858,689 rc.215.000) 757,793,163 2021 757,793,163 15,091,723 (3.207.000) 769.677.886 2022 769.677.886 15.329.418 (3,207,000) 781.800,304 2023 781,800,304 15.571.866 (3,207,000) 794,165,170 2024 794,165,170 15,819,003 8.215.000) 806,769,174 2025 806,769,174 16,071 ,243 (3.207.000) 819,633,417 2026 819,633,417 16,328,528 (3.207,000) 832.754.945 2027 832.754.945 16.590.959 (3,207,000) 846.138.904 2028 846.138.904 16,858,478 rc,215,000) 859.782.382 2029 859,782,382 1 7 , 1 3, 1 508 (3.207.000) 873,706,890 2030 873,706,890 17.409.998 (3,207,000) 997,909,888 2031 887.909.888 17,694,058 (3,207,000) 902.396,946 2032 902.396.946 17,983,639 8.215.000) 917,165,584 2033 917,165,584 18.279j72 (3.207.000) 932,237,756 2034 932,237,756 18.580.615 (3,207,000) 947,611,371 2035 947.611.371 18.888,087 (3,207,000) 963,292,459 2036 963.292.459 19,201,549 8.215.000) 979,279,008 2037 979,279,008 19,521,440 (3,207,000) 995,593,448 TMt-16-008 Page4 of 4 Schedule1 (Continued)

Beginning Ending Year Balance Deposits Earninqs Withdrawall'2 Balance 2038 995,593,448 19,847,729 (3,207,000) 1,012,234,177 2039 1,012,234,177 20,180,544 (3,207,000) 1,029,207,721 2040 1,029,207,721 19,469,854 (55,715,000) 992,962,575 2041 992.962.575 18.023,231 (91,801,000) 919,184,806 2042 919,184,806 16,043,496 ( 1 7 , 0 1 0 , 0 0 0 ) 818,218,303 2043 818,218,303 14,024,166 (117,010,000) 715,232,469 2044 715,232,469 11,958,049 (117,330,000) 609,860,518 2045 609.860.518 9.857.010 (117,010,000) 502,707,528 2046 502.707,528 7.989.051 (103,255,000) 407,441,579 2047 407,441,579 6,605,532 ft7.165,000) 3 3 6 , 8 8 2 . 111 2048 336,882,111 5,190,122 f7.376.000) 264,696,233 2049 264.696.233 3.750.625 (77,165,000) 191.281.857 2050 191.281.857 2.282.337 u7,165,000) 1 1 6 . 3 9 9 , 1 9 5 2051 116,399,195 835.224 (74.638.000) 42.596,418 2052 42,596,418 425,408 (21.326.000) 21,695,827 2053 21.695.827 373.117 (3,040,000) 19.028.943 (1,204,022,000)

Notes:

1. Withdrawalareassumedto be madeat the beginning of the period.
2. Therewereno fundswithdrawn fromthe decommissioning trustfundfor years2013, 2014,and2015.

Attachment 3 TMt-16-008 ThreeMilelslandNuclearStation,Unit2 Financial Assurance StatusReport Page1 of 1 1 . Formaldecommissioning hasnotstartedat theThreeMilelslandNuclearStation,Unit2.

A specialdisbursement of decommissioning trustfundsoccurredin 2005for $416,400.00.

Notification of this useof decommissioning fundswas madeto the NRCby letterdated February 1,2005(Accession No.ML050380143). Nofundswerespenton decommissioning activities in 2015.

2 . Decommissioning fundsestimated to be requiredarebasedupona site-specific decommissioning coststudy,Decommissioning CosfAnalysisfor ThreeMile IslandUnit2, datedDecember2014,andescalated to 2015dollars:

NRC LicenseTermination $1,204,022,000 As notedon Attachment2, Schedule1, FirstEnergy Corp.FundingAnalysisdated December 31. 2015.

3. Theamountaccumulated in external trustfundsas of December 31,2015:

AfterTax Metropolitan EdisonCompany $324,050,034 Pennsylvania Electric Company 173,371,413 JerseyCentralPower& LightCompany 204.368,945 FirstEnergy Corp.Consolidated $701.790.392 4 . Thereare no longeranyfundsto be collected fromthe ratepayers.

5 . Thereare no modifications to the licensee's currentmethodof providing financial assurance sincethe lastsubmittedreport.

6 . Therewereno amendments to thetrustagreements for the above-mentioned ownersof ThreeMib lslandNuclearStation,Unit2.

7 . Mathematical roundingwas performed duringthe development of the supporting calculations.

8.

References:

A. DecommissioningCosf Analysisfor Three Mile lsland Unit 2, December 2014 B. Escalation Analysisfor Three Mile lslandUnit 2 2013 Stfe-Specific DecommissioningCosf Estimate, February 2015