TMI-17-006, Decommissioning Funding Status Report

Decommissioning Funding Status Report

ML17083B223
Person / Time
Site:	Three Mile Island
Issue date:	03/24/2017
From:	Halnon G GPU Nuclear
To:	Document Control Desk, Office of Nuclear Reactor Regulation
References
TMI-17-006
Download: ML17083B223 (10)

Text

GPUNuclear; Inc.

ThreeMilelsland NUCLEAN NuclearStation Route441 South PostOfficeBox480 Middletown,PA17057-0480 Tel717-948-8461 March24,2017 TMt-17-006 10cFR 50.75 10cFR 50.82 ATTN:Document ControlDesk U.S.Nuclear Regulatory Commission Washington, D.C.20555-0001

SUBJECT:

ThreeMilelslandNuclearStation,Unit2 DocketNo.50-320,LicenseNo. DPR-73 Decommissioninq FundingStatusReoortfor the ThreeMilelslandNuclear Station.Unit2 Pursuantto10 CFR50.75and 10 CFR50.82,GPUNuclear,Inc.is herebysubmitting the followingthreereportsto the NuclearRegulatory Commission (NRC) for Three Mile lsland NuclearStation,Unit 2for the yearendingDecember31, 2016. Attachment1 providesa decommissioning fundingstatusreportbasedon the NRCformuladescribedin 10 CFR50.75(c).Attachment2 providesa decommissioning fundingstatusreportbased upona site-specificdecommissioning costestimate(DCE).Attachment3 containsa financialassurancestatusreportas requiredby 10 CFR 50.82(a)(8Xv).

Thereare no regulatory commitments containedin this letter. lf thereare any questionsor if additionalinformationis required,pleasecontactMr.ThomasA. Lentz,Manager- FirstEnergy NuclearOperating CompanyFleetLicensing, at (330)315-6810.

Halnon President

ThreeMib lslandNuclearStation,Unit2 TMr-17-006 Page 2 Attachments:

FundingStatusReport- NRC

1. ThreeMib lslandNuclearStation,Unit2 Decommissioning Formula FundingStatusReport-

2. ThreeMib lslandNuclearStation,Unit2 Decommissioning Site-Specific DecommissioningCostEstimate

3. ThreeMilelslandNuclearStation,Unit2 Financial StatusReport Assurance cc: NRC RegionI Administrator NRC ProjectManager NRC ResidentInspector

Attachment1 TMt-17-006 ThreeMilelslandNuclearStation,Unit2 Decommissioning Funding StatusReport- NRC Formula Page1 of 3 This reportreflectsthe FirstEnergy Corp.subsidiaryownershipinterestsin the ThreeMile lslandNuclearStation,Unit2 as of December 31, 2016.

1. The minimumdecommissioning fundestimate,pursuantto 10 CFR 50.75(b)and (c) (see Schedule1):

Metropolitan EdisonCompany $238,246,458 Pennsylvania ElectricCompany 119,123,230 JerseyCentralPower& LightCompany 119.'.a23,230 FirstEnergy Corp.Consolidated $476.492.918

2. The amountaccumulated in externaltrustfunds:

After Tax Metropolitan EdisonCompany $360,647,760 Pennsylvania ElectricCompany 191,330,841 JerseyCentralPower& LightCompany 226.076,560 FirstEnergy Corp.Consolidated $7ru*055,161-3 . Thereare no longerany fundsto be collectedfromthe ratepayers.

4 . The assumptions usedregarding escalationin decommissioningcost,ratesof earnings on decommissioning funds,and ratesof otherfactorsusedin fundingprojections:

Consolidated OwnershipInterestin Unit 100o/o EstimatedNet lnvestmentRate 2.A0o/o Yearof Site Restoration Completion 2053 Yearof ThreeMilelslandNuclearStation,Unit1 end of license 2034 The decommissioning activitiesfor ThreeMilelslandNuclearStation,Unit2 areplanned to commenceafterthe shutdownof ThreeMilelslandNuclearStation,Unit1. ThreeMib lslandNuclearStation,Unit2 transitions froma Post-DefuelingMonitoredStoragestatus to decommissioning in 2040.

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

6 . Thereare no modifications to the licensee'scurrentmethodof providingfinancial assurancesincethe lastsubmittedreport.

TMr-17-006 Page2 of 3 7 . Therewere no amendments to the trustagreementsfor the above-mentionedownersof ThreeMib lslandNuclearStation,Unit2.

8 . Mathematicalroundingwas performedduringthe development of the supporting calculations.

TMt-17-006 Page3 of 3 Schedule1 FIRSTENERGY CORP.

Calculationof MinimumFinancial Assurance Amount December 31,2016 THREEMILEISLANDNUCLEARSTATION,UNIT2 PennsvlvaniaReqions Labor(L) = Northeast Energy(E) = National WasteBurial(B) = Generic For PWR Unit Adjustment Escalation Factor Ratio Factorl

[= 2.78 0.65 1.807 f= 1.870 0.13 0.243 B= 12.471 0.22 2.744 PWREscalation Factor= 4.794 BaseAmountfor PWRbetween1200MWt and 3400MWt = ($ZS+ 0.0088P)million (P = powerlevelin megawattsthermal= 2772)

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

99,393,600 x 4.794 $476,492,918 Owner/Licenseel Ownership Pennsylvania ElectricCompany 25o/o $119,123,230 JerseyCentralPower& Light Company 25o/o $119,123,230 MetropolitanEdisonCompany 50o/o $238,246,458 FirstEnergyCorp.Consolidated 100% $476,492,918 roundingwas performedduringthe development Note1: Mathematical of the supportingcalculations.

Attachment2 TMt-17-006 ThreeMilelslandNuclearStation,Unit2 Decommissioning Funding StatusReport Site-Specific Decommissioning Cost Estimate Page1 of 4

1. Decommissioning fundsestimated to be requiredpursuantto 10 CFR50.75(b)and (c) are basedupona site-specificdecommissioning cost study,Decommissioning Cosf Analysis forThreeMile IslandUnit2, datedDecember2014,andescalatedto 2016dollars:

NRC LicenseTermination $1,234,967,000 2 . The amountaccumulated in externaltrustfundsas of December31,2Q16:

After Tax Metropolitan EdisonCompany $360,647,760 Pennsylvania ElectricCompany 191,330,841 JerseyCentralPower& LightCompany 226.076.560 FirstEnergy Corp.Consolidated $7Jff55,1Ot 3 . Thereare no longeranyfundsto be collectedfromthe ratepayers.

4 . The assumptions usedregardingescalationin decommissioning cost,ratesof earnings on decommissioning funds,and ratesof otherfactorsusedin fundingprojections:

Consolidated OwnershipInterestin Unit 100o/o EstimatedRateof Escalationin Decommissioning Costs 0.00%

EstimatedAfter-TaxRateof Return 2.00o/o Yearof Site Restoration Completion 2053 Yearof ThreeMilelslandNuclearStation,Unit1 end of license 2034 The decommissioning activities for ThreeMilelslandNuclearStation,Unit2 areplanned to commenceafterthe shutdownof ThreeMilelslandNuclearStation,Unit1. ThreeMile lslandNuclearStation,Unit2 transitions froma Post-Defueling MonitoredStoragestatus to decommissioning in 2040.

All costare basedon a site-specific decommissioning coststudy,Decommissioning Cosf Analysisfor ThreeMile IslandUnit2, datedDecember2014(2013dollars),then escalated to 2016dollarsusingan escalation factorof 2.795%as documented in EscalationAnalysisforThree Mile IslandUnit2, dated February2015.

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

6 . Thereare no modifications to the licensee'scurrentmethodof providingfinancial assurancesincethe lastsubmittedreport.

TMt-17-006 Page2 of 4 7 . Therewere no amendments to the trustagreements for the above-mentioned ownersof ThreeMilelslandNuclearStation,Unit2.

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

A licenseethat has prepaidfundsbasedon a site-specific estimateunder 50.75(bX1)of this sectionmay take creditfor projectedearnings on the prepaiddecommissioning trustfunds,usingup to a 2 percentannualreal rate of returnfrom the time of futurefunds'collectionthroughthe projected decommissioning period,providedthat the site-specific estimateis basedon a periodof safestoragethat is specifically describedin the estimate.

ln accordance with Regulatory Guide1.159,Revision2, afacilityspecificanalysismay be usedto demonstrate the adequacyof decommissioning funds,providedthat:

NRC-required costestimatefor decommissioning costs,as definedin 10 CFR 50.2,is equalto or greaterthanthe amountstatedin the formulasin 10 cFR 50.75(cX1) and(2).

The site-specific radiological decommissioning costestimateis $1,234,967,000 whichis greaterthanthe 10 CFR50.75(c)costestimate of $476,492,918. The analysisassumesa 2 percentyearlyrateof return.The analysisalsoassumesa periodof safestorage.The cashflowswere containedin a decommissioning costestimatethatwas preparedfor ThreeMilelslandNuclearStation,Unit2. The cashflowanalysisassumesthe yearly expensesare incurredat the beginningof year.

Schedule1 providesthe site-specific analysis.The analysisvaluesare in 2016dollars.

The analysisis basedon the DECONmethodof decommissioning and includes expenditures for licensetermination costsonly.

9. Mathematical roundingwas performedduringthe development of the supporting calculations.

10.

References:

A. DecommissioningCosf Analysisfor ThreeMile lsland Unit 2, December2014 (AccessionNo. ML15086A337)

B. EscalationAnalysisfor ThreeMile lslandUnit2 2013 Slfe-Specific Decommissioning Cosf Estimate,February2015(AccessionNo. ML15086A337)

TMt-17-006 Page3 of 4 Schedule 1 FIRSTENERGY CORP.

FundingAnalysis December 31,2016 THREEMILEISLANDNUCLEARSTATION,UNIT2 After-Tax EstimatedNet lnvestmentRate 2.00%

EstimatedEscalationRate 0.00%

EstimatedAfter-TaxRate of Return 2.A0%

QuafifiedTrustBalanceon December31, 2016 778,05S,161After-Tax Non-QualifiedTrustBalanceon December31,2016 Total 778,055,161 Beginning Ending Year Balance Deposits Earninqs Withdrawall'2 Balance 2017 778,055,'t61 15,495,144 (3.297.938) 790,252,367 2018 790,252,367 15,739,089 (3.297.938) 902,693,517 2019 802,693,517 15,987,912 (3.297.938) 815.383.491 2020 815.383.491 16,241,530 (3,306,974) 828.318.047 2021 828.318.047 16,500,402 (3,297,938) 841.520.511 2022 841,520,511 16,764,451 (3,297,938) 854,987,024 2023 854,987.024 17.033.782 (3,297,938) 868,722,868 2024 868,722,868 17.308.318 (3,306,974) 882.724.212 2025 882,724,212 17,588,525 (3,297,938) 897,014,799 2026 897,014,799 17,874,337 (3.297.938) 911,591,198 2027 9 11, 5 9 1, 1 9 8 18,165,865 (3.297.938) 926,459,125 2028 926,459,125 18,463,043 (3,306,974) 941.615.194 2029 9 4 1. 6 15 . 1 9 4 18.766.345 (3,297,938) 957,083,601 2030 957.083.601 19.075.713 (3,297,938) 972,861,375 2031 972,861,375 1 9 . 3 9.12 6 9 (3,297,938) 988,954,706 2032 988,954,706 19,712,955 (3,306,974) 1,005,360,687 2033 1,005,360,697 20,041,255 (3,297,938) 1,022,104,003 2034 1,022,104,003 20,376,121 (3,297,938) 1.039.182.186 2035 1.039.182.186 20,717,685 (3.297.938) 1.056.601.933 2036 1.056.601.933 21,065,899 (3.306.974) 1.074.360.858 2037 1.074.360.858 21,421,258 (3,297,938) 1.092.484.179 TMr-17-006 Page4 of 4 Schedule1 (Continued)

Beginning Ending Year Balance Deposits Earninqs Withdrawall'2 Balance 2038 1.092.484.179 21.783.725 (3,297,938) 1 , 1 1 0 , 9 6 9 , 9 6 5 2039 1,110,969,965 22.153.441 (3,297,938) 1.129,825,467 2040 1,129,825,467 21,450,513 ( 5 7 , 2 9 9 , 8 1 1 ) 1,093,976,169 2041 1,093,976,169 1 9 , 9 9 1 , 2 6 1 (94,413,100) 1 , 0 1 9 , 5 5 4 , 3 3 0 2042 1.019.554.330 17,984,315 (120.338.584) 917,200,061 2043 917.200.061 15,937,230 (120,338,584) 812.798.707 2444 812.798.707 13.842.609 (120,668,279\ 705.973.037 2045 705.973.037 11.712.689 (120,338,584) 597,347,142 2046 597.347.142 9.823.090 ( 1 0 6 , 1 9 2 , 6 3 8 ) 500,977,594 2047 500,977,594 8.432.347 fig.360.250) 430,049,691 2048 430,049,691 7,009.440 09.577.6751 357.481.457 2049 357,481,457 5.562.424 fig.360.250) 293,683,631 2050 283,683,631 4,086,468 (79,360,250) 208,409,850 2051 208,409,850 2,632,965 (76,761,619) 134,281,195 2052 134,281,195 2,246,960 (21,933,194) 114,594,961 2053 114.594.961 2.229.379 (3,126,001) 1 1 3 . 6 9 8 . 3 3 9 (1,234,966,576)

Notes:

1. Withdrawal are assumedto be madeat the beginning of the period.

2. Therewere no fundswithdrawnfromthe decommissioning trustfundfor years2013, 2 0 1 4 , 2 0 1 5a, n d2 0 1 6 .

Attachment3 TMt-17-006 ThreeMilelslandNuclearStation,Unit2 Financial Assurance StatusReport Page1 of 1

1. Formaldecommissioning has notstartedat ThreeMilelslandNuclearStation,Unit2. A specialdisbursement of decommissioning trustfundsoccurredin 2005for $416,400.00.

Notification of this use of decommissioning fundswas madeto the NRC by letterdated February1,2005 (Accession No. M1050380143). No fundswerespenton decommissioning activitiesin 2016.

2. Decommissioning fundsestimatedto be requiredare basedupona site-specific decommissioning coststudy,Decommissioning Cost Analysisfor ThreeMile lslandUnit2, datedDecember2014,and escalatedto 2016dollars:

NRCLicenseTermination $1,234,967,000 As notedon Attachment2, Schedule1, FirstEnergyCorp.FundingAnalysisdated December31, 2016.

3. The amountaccumulated in externaltrustfundsas of December31,2016:

After Tax Metropolitan EdisonCompany $360,647,760 Pennsylvania ElectricCompany 191,330,841 JerseyCentralPower& LightCompany 226,076.560 FirstEnergy Corp.Consolidated $778.05il-q!-

4. Thereare no longerany fundsto be collectedfromthe ratepayers.

5. Thereare no modifications to the licensee'scurrentmethodof providingfinancial assurancesincethe lastsubmittedreport.

6. Therewere no amendments to the trustagreements for the above-mentioned ownersof ThreeMilelslandNuclearStation,Unit2.

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

8.

References:

A. DecommissioningCosf Analysisfor ThreeMile lsland Unit 2, December2014 B. EscalationAnalysisfor ThreeMile lslandUnit2 2013 Sife-Specific Decommissioning CosfEstimate,February2015