TMI-17-006, Decommissioning Funding Status Report

Decommissioning Funding Status Report

ML17083B223
Person / Time
Site:	Crane
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

NUCLEAN March 24,2017 TMt-17-006 ATTN: Document Control Desk U.S. Nuclear Regulatory Commission Washington, D.C. 20555-0001 GPU Nuclear; Inc.

Three Mile lsland 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

SUBJECT:

Three Mile lsland Nuclear Station, Unit 2 Docket No. 50-320, License No. DPR-73 Decommissioninq Funding Status Reoort for the Three Mile lsland Nuclear Station. Unit 2 Pursuantto 10 CFR 50.75 and 10 CFR 50.82, GPU Nuclear, Inc. is hereby submitting the following three reports to the Nuclear Regulatory Commission (NRC) for Three Mile lsland Nuclear Station, Unit 2for the year ending December 31, 2016. Attachment 1 provides a decommissioning funding status report based on the NRC formula described in 10 CFR 50.75(c). Attachment 2 provides a decommissioning funding status report based upon a site-specific decommissioning cost estimate (DCE). Attachment 3 contains a financial assurance status report as required by 10 CFR 50.82(a)(8Xv).

There are no regulatory commitments contained in this letter. lf 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.

Halnon President

Three Mib lsland Nuclear Station, Unit 2 TMr-17-006 Page 2 Attachments:

1. Three Mib lsland Nuclear Station, Unit 2 Decommissioning Funding Status Report-NRC Formula

2. Three Mib lsland Nuclear Station, Unit 2 Decommissioning Funding Status Report -

Site-Specific Decommissioning Cost Estimate

3. Three Mile lsland Nuclear Station, Unit 2 Financial Assurance Status Report cc: NRC Region I Administrator NRC Project Manager NRC Resident Inspector TMt-17-006 Three Mile lsland Nuclear Station, Unit 2 Decommissioning Funding Status Report - NRC Formula Page 1 of 3 This report reflects the FirstEnergy Corp. subsidiary ownership interests in the Three Mile lsland Nuclear Station, Unit 2 as of December 31, 2016.

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

2. The amount accumulated in external trust funds:

Metropolitan Edison Company Pennsylvania Electric Company Jersey Central Power & Light Company FirstEnergy Corp. Consolidated There are no longer any funds to be collected from the ratepayers.

The assumptions used regarding escalation in decommissioning cost, rates of earnings on decommissioning funds, and rates of other factors used in funding projections:

$238,246,458 1 19,123,230 119.'.a23,230

$476.492.918 After Tax

$360,647,760 191,330,841 226.076,560

$7ru*055,161-3.

4.

Consolidated Ownership Interest in Unit Estimated Net lnvestment Rate Year of Site Restoration Completion Year of Three Mile lsland Nuclear Station, Unit 1 end of license 100o/o 2.A0o/o 2053 2034 5.

6.

The decommissioning activities for Three Mile lsland Nuclear Station, Unit 2 are planned to commence after the shutdown of Three Mile lsland Nuclear Station, Unit 1. Three Mib lsland Nuclear Station, Unit 2 transitions from a Post-Defueling Monitored Storage status to decommissioning in 2040.

There are no contracts upon which the owners/licensees are relying pursuant to 10 cFR 50.75(eX1Xv).

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

Attachment 1

TMr-17-006 Page 2 of 3 7.

8.

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

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

Attachment 1

TMt-17-006 Page 3 of 3 Schedule 1 FIRSTENERGY CORP.

Calculation of Minimum Financial Assurance Amount December 31,2016 THREE MILE ISLAND NUCLEAR STATION, UNIT 2 Pennsvlvania Reqions Labor (L) = Northeast Energy (E) = National Waste Burial (B) = Generic For PWR Unit Base Amount for PWR between 1200 MWt and 3400 MWt = ($ZS + 0.0088P) million (P = power level in megawatts thermal = 2772)

[=

f=

B=

PWR Escalation Factor =

($zs + 0.0088 (2772)) million =

Escalated Amount for unitl =

99,393,600 x

Owner/Licenseel Pennsylvania Electric Company Jersey Central Power & Light Company Metropolitan Edison Company FirstEnergy Corp. Consolidated Adjustment Factor 2.78 1.870 12.471 4.794 Ownership 25o/o 25o/o 50o/o 100%

Ratio 0.65 0.13 0.22

$1 19,123,230

$1 19,123,230

$238,246,458

$476,492,918 Escalation Factorl 1.807 0.243 2.744 4.794

$99,393,600

$476,492,918 Note 1: Mathematical rounding was performed during the development of the supporting calculations.

TMt-17-006 Three Mile lsland 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 Cosf Analysis forThree Mile Island Unit 2, dated December 2014, and escalated to 2016 dollars:

NRC License Termination

$1,234,967,000 The amount accumulated in external trust funds as of December 31,2Q16:

After Tax Metropolitan Edison Company

$360,647,760 Pennsylvania Electric Company 191,330,841 Jersey Central Power & Light Company 226.076.560 FirstEnergy Corp. Consolidated

$7Jff55,1Ot There are no longer any funds to be collected from the ratepayers.

The assumptions used regarding escalation in decommissioning cost, rates of earnings on decommissioning funds, and rates of other factors used in funding projections:

2.

3.

4.

Consolidated Ownership Interest in Unit Estimated Rate of Escalation in Decommissioning Costs Estimated After-Tax Rate of Return Year of Site Restoration Completion Year of Three Mile lsland Nuclear Station, Unit 1 end of license 100o/o 0.00%

2.00o/o 2053 2034 5.

6.

The decommissioning activities for Three Mile lsland Nuclear Station, Unit 2 are planned to commence after the shutdown of Three Mile lsland Nuclear Station, Unit 1. Three Mile lsland Nuclear Station, Unit 2 transitions from a Post-Defueling Monitored Storage status to decommissioning in 2040.

All cost are based on a site-specific decommissioning cost study, Decommissioning Cosf Analysis for Three Mile Island Unit 2, dated December 2014 (2013 dollars), then escalated to 2016 dollars using an escalation factor of 2.795% as documented in Escalation Analysis forThree Mile Island Unit 2, dated February 2015.

There are no contracts upon which the owners/licensees are relying pursuant to 10 cFR 50.75(eX1Xv).

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

Attachment 2

TMt-17-006 Page 2 of 4 7.

8.

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

Site-Specific Cost Analysis Assumptions 10 CFR 50.75(eX1Xi),

states, in part, that:

A licensee that has prepaid funds based on a site-specific estimate under 50.75(bX1) of this section may take credit for projected earnings on the prepaid decommissioning trust funds, using up to a 2 percent annual real rate of return from the time of future funds' collection through the projected decommissioning period, provided that the site-specific estimate is based on a period of safe storage that is specifically described in the estimate.

ln accordance with Regulatory Guide 1.159, Revision 2, afacility specific analysis may be used to demonstrate the adequacy of decommissioning funds, provided that:

NRC-required cost estimate for decommissioning costs, as defined in 10 CFR 50.2, is equal to or greater than the amount stated in the formulas in 10 cFR 50.75(cX1) and (2).

The site-specific radiological decommissioning cost estimate is $1,234,967,000 which is greaterthan the 10 CFR 50.75(c) costestimate of $476,492,918.

The analysis assumes a 2 percent yearly rate of return. The analysis also assumes a period of safe storage. The cash flows were contained in a decommissioning cost estimate that was prepared for Three Mile lsland Nuclear Station, Unit 2. The cash flow analysis assumes the yearly expenses are incurred at the beginning of year.

Schedule 1 provides the site-specific analysis. The analysis values are in 2016 dollars.

The analysis is based on the DECON method of decommissioning and includes expenditures for license termination costs only.

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

10.

References:

A. Decommissioning Cosf Analysis for Three Mile lsland Unit 2, December 2014 (Accession No. ML15086A337)

B. Escalation Analysis for Three Mile lsland Unit 2 2013 Slfe-Specific Decommissioning Cosf Estimate, February 2015 (Accession No. ML15086A337)

Attachment 2

TMt-17-006 Page 3 of 4 Schedule 1

FIRSTENERGY CORP.

Funding Analysis December 31,2016 THREE MILE ISLAND NUCLEAR STATION, UNIT 2 Estimated Net lnvestment Rate Estimated Escalation Rate Estimated After-Tax Rate of Return Quaf ified Trust Balance on December 31, 2016 Non-Qualified Trust Balance on December 31,2016 Total After-Tax 2.00%

0.00%

2.A0%

778,05S,161 After-Tax 778,055,161 Year Beginning Balance Deposits Earninqs Withdrawall'2 Ending 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 91 1,591

,198 18,165,865 (3.297.938) 926,459,125 2028 926,459,125 18,463,043 (3,306,974) 941.615.194 2029 941.61 5.194 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 19.391

.269 (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

Attachment 2

TMr-17-006 Page 4 of 4 Schedule 1 (Continued)

Notes:

1. Withdrawal are assumed to be made at the beginning of the period.

2. There were no funds withdrawn from the decommissioning trust fund for years 2013, 2014,2015, and 2016.

Year Beginning Balance Deposits Earninqs Withdrawall'2 Ending Balance 2038 1.092.484.179 21.783.725 (3,297,938) 1,110,969,965 2039 1,110,969,965 22.153.441 (3,297,938) 1.129,825,467 2040 1,129,825,467 21,450,513 (57,299,811) 1,093,976,169 2041 1,093,976,169 19,991,261 (94,413,100) 1,019,554,330 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 (106,192,638) 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) 113.698.339 (1,234,966,576)

TMt-17-006 Three Mile lsland Nuclear Station, Unit 2 Financial Assurance Status Report Page 1 of 1

1. Formal decommissioning has not started at Three Mile lsland 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. M1050380143).

No funds were spent on decommissioning activities in 201 6.

2. Decommissioning funds estimated to be required are based upon a site-specific decommissioning cost study, Decommissioning Cost Analysis for Three Mile lsland Unit 2, dated December 2014, and escalated to 2016 dollars:

NRC License Termination

$1,234,967,000 As noted on Attachment 2, Schedule 1, FirstEnergy Corp. Funding Analysis dated December 31, 2016.

3. The amount accumulated in external trust funds as of December 31,2016:

After Tax Metropolitan Edison Company

$360,647,760 Pennsylvania Electric Company 191,330,841 Jersey Central Power & Light Company 226,076.560 FirstEnergy Corp. Consolidated

$778.05il-q!-

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

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

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

7. Mathematical rounding was performed during the development of the supporting calcu lations.

8.

References:

A. Decommissioning Cosf Analysis for Three Mile lsland Unit 2, December 2014 B. Escalation Analysis for Three Mile lsland Unit 2 2013 Sife-Specific Decommissioning Cosf Estimate, February 2015