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TMJ-2 SOLUTIONS March 31, 2021 TMl2-RA-COR-2021-0006                                                      10 CFR 50.75 10 CFR 50.82 -
U.S. Nuclear Regulatory Commission ATTN; Document Control 0!3sk Wash_ington, D.C. 20555-0001
 
==SUBJECT:==
Decommissio_ning_Fund Status Report-:-Three Mile Island, Unit2 Three Mile Island, Unit 2 .                  _
NRC Possession    Only  License  No. DPR-73 Docket No. 50-320
* Pursuant to 10 CFR 50.75 and 10 CFR 50.82, TMl-2 Solutions. is hereby submitting the following three reports to the Nuclear Regulatory Commission (NRC) for Three Mile Island Unit 2, for the year ending December 31, 2020. Attachme!lt 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 decommission.ing cost estimate (DCE) .. 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 infomiatior:, is required, please_contact me at 860-462-9707.
Sincerely, Gerard P. Van Noordennen Mar 312021 11;47 AM Gerard van Noordennen                      .
Senior Vice President Regulatory Affairs TMl-2 Solutions, LLC Attachments:
: 1. Three Mile Island, Unit 2Decommissioning Funding Status Report- NRC F9m1ula i Three Mile Island, Unit 2 Decommissioning Funding Status Report:....
Site-Specific Decommissioning- Cost Estimate
: 3. Three Mile *Island , Unit 2 Financial Assurance Status Report cc:
NRC Region I Administrator NRC Project Manager NRC Lead Inspector
 
TMl-2 Service List Ken Robuck                              Director, Bureau of Radiation Protection, President and CEO                        Department of Environmental Protection, Energy Solutions                          Commonwealth of Pennsylvania 299 South Main Street, Suite 1700        Rachael Carson State Office BLDG.
Salt Lake City, UT 84111                13TH Floor P.O. Box 8469 John Sauger                              Harrisburg, PA 17105-8469 President and Chief Nuclear Officer Reactor D&D                              Chief, Division of Nuclear Safety, Bureau Energy Solutions                        of Radiation Protection, 121 W. Trade Street, Suite 2700          Department of Environmental Protection, Commonwealth of Pennsylva_nia Charlotte, NC 28202 Rachael Carson State Office BLDG.
Mike Lackey                              13TH Floor Senior Vice President                    P.O. BOX 8469 D&D Operations                          Harrisburg, PA 17105-8469 Energy Solutions 121 W. Trade Street, Suite 2700          Chairman, Board of County Charlotte, NC 28202                      Commissioners, Dauphin County 112 Market Street Gerard van Noordennen                    ?th Floor Senior Vice President Regulatory Affairs Harrisburg, PA 17101 Energy Solutions 121 W. Trade Street, Suite 2700          Chairman, Board of Supervisors of Charlotte, NC 28202                      Londonderry Township 783 S. Geyers Church Rd.
Scott Baskett                            Middletown PA 17057 Project Director TMl-2 Solutions 121 W. Trade Street, Suite 2700 Charlotte, NC 28202 Russ Workman General Counsel Energy Solutions 299 South Main Street, Suite 1700 Salt Lake City, UT 84111 Daniel F. Stenger Hogan Lovells US LLP 555 13th St NW Washington, D.C. 20004
 
Attachment 1 TMl2-RA-COR-2021-0006 Three Mile Island, Unit 2 Decommissioning Funding Status Report - NRC Formula Page 1 of 2 This report reflects the TMl-2 Solutions ownership interests in Three Mile Island, Unit 2 as of December 31, 2020.
: 1. The minimum decommissioning fund estimate, pursuant to 10 CFR 50.75(b) and (c) (see Schedule 1):
                                                                            $503,627,371
: 2. The amount accumulated in external trust funds:
AfterTax
                                                                            $862,549,586
: 3. There are no longer any funds being 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 Three Mile Island, Unit 2 transitions from a Post-Defueling Monitored Storage status to decommissioning in 2022.
: 5. There are no contracts upon which the owners/licensees are relying upon pursuant to 10 CFR 50.75(e)(1)(v).
: 6. There are no modifications to the licensee's current method of providing financial assurance.
: 7. The above-mentioned owner of Three Mile Island Unit 2, TMl-2 Solutions, became the TMl-2 licensee on December 18, 2020, following the closing specified in the October 15, 2019 Asset Purchase and Sale Agreement The trust agreement has not been amended since the closing.
: 8. Mathematical rounding was performed during the development of the supporting calculations.
 
ATTACHMENT 1 TMl2-RA-COR-2021-0006 Three Mile Island, Unit 2 Decommissioning Funding Status Report - NRC Formula Page 2 of 2 Schedule 1 TMl-2 Solutlons, LLC.
Calculation of Minimum Financial Assurance Amount December 31, 2020 THREE MILE ISLAND NUCLEAR STATION, UNIT 2 Pennsylvanla Regions Labor (L) = t-.hrtheast Energy (E) = National Waste Burial ( B) = Generic For PWR Unit Adjustment                                  Escalation Factor                Ratio                      1 Factor L=                  3.060          0.65                  1.989 E=                  2.030          0.13                  0.264 B=                  12.793          0.22                  2.814 PWR Escalation Factor=                                                                    5.067 Base Amount for PWR between 1200 Mwt and 3400 MWt = ($75 + 0.0088P) million (P = power level in megawatts thermal= 2772)
($75 + 0.0088(2772)) million=                                                        $99,393,600 1
Escalated Amount for unit = 99,393,600                          =                  $503,627.371 NoE 1: Mathematical rounding was perfonned during the development ci the supporting calculations
 
Attachment 2 TMl2-RA-COR-2021-0006 Three Mile Island, 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 Estimate as presented in PSDAR Revision 4, dated March 17, 2021.
NRC License Termination                      $1,044,364,000
: 2. The amount accumulated in external trust funds as of December 31, 2020:
AfterTax
                                                                          $862,549,586
: 3. There are no longer any funds being 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                        0.00%
Estimated After-Tax Rate of Return                                          2.00%
Year of Site Restoration Completion                                          2054 Three Mile Island, Unit 2 transitions from a Post-Defueling Monitored Storage status to decommissioning in 2022.
All costs are based on a site-specific decommissioning cost study, Decommissioning Cost Estimate as presented in PSDAR Revision 4, dated March 17, 2021 .
: 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.
: 7. The above-mentioned owner of Three Mile Island Unit 2; TMl-2 Solutions, became the TMl-2 licensee on December 18, 2020, following the closing specified in the October 15, 2019 Asset Purchase and Sale Agreement The trust agreement has not been amended since the closing.
: 8. Site Specific Cost Analysis Assumptions 10 CFR 50. 75(e)(1 )(i), states, in part, that
 
Attachment 2 TMl2-RA-COR-2021-0006 Three Mile Island, Unit 2 Decommissioning Funding Status Report -
Site-Specific Decommissioning Cost Estimate Page 2 of 4 A licensee that has prepaid funds based on a site-specific estimate under 50.75(b)(1) 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 offub.Jre 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.
In accordance with Regulatory Guide 1.159, Revision 2, Assuring the A vailabiHty of FLD1ds
    'for Decommissioning Nuclear Reactors, a facility specific analysis may be used to demonstrate the adequacy of decommissioning funds, provided that:
NRG-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(c)(1) and (2).
The site-specific radiological decommissioning cost estimate is $1,044,364,000 which is greater than the 10 CFR 50.75(c) cost estimate of $503,627,371. The analysis assumes a 2 percent yearly rate of return. The analysis also assumes that, upon approval of the
  . license transfer amendment, the project will enter directly into decommissioning. The cash flows were contained in a decommissioning cost estimate that was prepared for Three Mile Island Unit 2. The cash flow analysis assumes the yearly expenses are incurred at mid-year.
Schedule 1 provides the site-specific analysis. The analysis values are in 2020 dollars.
The analysis is based on TMl-2 transitioning from Post-Defueling Monitored Storage stab.Js to decommissioning in 2022 and includes expenditures for license termination costs only.
: 9. Mathematical rounding was performed during the development of the supporting calculations.
: 10.     
 
==References:==
 
A. Letter from USNRC to Halnon, G.H. (GPU Nuclear, Inc.), aThree Mile Island Nuclear Station, Unit No. 2 - Order Approving Transfer of License from the RrstEnergy Companies to TMl-2 Solutions, LLC and Draft Conforming Administrative License Amendment (EP ID L-2019-LLA-0257)," dated December 2, 2020.
B. Notification of "Amended Post-Shutdown Decommissioning Activities Report''
(PS DAR) for Three Mile Island, Unit 2 in Accordance with 10 CFR 50.82(a)(7),
Revision 4, dated March 17, 2021.
 
Attachment 2          .
TMl2-RA-COR-2021-0006 Three Mile Island, Unit 2 Decorm,issioning Funding Status Report -
Site-Specific Decommissioning Cost Estimate Page 3 of 4 Schedule 1 TMl-2 SOLUTIONS, LLC.
Funding Analysis December 31, 2020 THREE MILE ISLAND NUCLEAR STATION, UNIT 2 After-Tax Estimated Net Investment Rate                                                            2.00%
Estimated Escalation Rate                                                                0.00%
* Estimated After-Tax Rate of Return                                                      2.00%
Qualified Trust Balance on ~cember 31, 2020                              862,549,586 After-Tax_
No_n-Quallfied Trust Balance on D~cember 31, 2020 TotaJ                                        862,549,586 Beginning                                                                    Ending Year          Balance          Deposits          Earnings          WrthdrawaJ            Balance 2020      $    862,549,586  $            -  $            -    $              -    $      862,549,586 2021 *    $    862,549,586 $            -  *$    16,936,809  *s      31,418,287  *s    848,068,108
    *2022      $-    848,068,108 $            -  $    16,461,121  $      50P24,122    $    814,505,107 2023      $    814,505,107* $            -  $    15,604,289 *$        68,581,309 .$      761,528P87 202'i      $    761,528,087 $            *-  $    14,529,698  $      70P86,339    $      705j71,446 2025      $    705,971,446 $            -  .$    13,404,866  $      71,456,339 *s      647,919,973 2026      '$    647,919,973 $            -  $    12,232,401  $      72,599,868  $      587,552,506 2027      $  . 587,552,506 $            -  $    11,182,487  $
* 56,856,284  $      541,878,709 2028      $    541,878,709 $'            -  $    10,356,368  s*      48,120,627  $ -
* 504,114,450 2029      $    504,114,450 $            -  $      9,803,396  $      27,889,339  $      486,028,506 2030 .    $    486P28,506  $            -  $      9,427,032 *$      29,353,813  $      466,101,725 2031      $    466,101,725 $            -  $      8,887,041  $      43,499,325  $      431,489,441 2032      $    431,489,441 $            -  $      8,082;032  $      54,775,656  $      384,795,818 2033      $    384 795,818 $            -  $      7P76,307  $      61,960,930  $      329,911195 2034      $    329,911,195 $            -  $      5,568,673  $    102,955,072    $      232,524,796 2035      $    232,524,796 $            -  $
* 3,596,590  $    105,390,563    $    ,130,730,823 2036      $    130,730;823 $            -:  $      1,816,682 $        79,793,491  $      52,754,014 2037      $      52,754,014 $            -  *s        954,300 $        1op18,020    $      43,630,294 2020- 2037-    $    862,549,586  $            -  $  165,920,092  $    984,839,384    $      43,630,294 2038-2054      $      43,630,294 $      7,682,391  $    8,211,931  $      59,524,617    $              (O)
Total                        $      7,682,391  $  174,132,023  $ 1,044,364,000
 
Attachment 2 TMl2-RA-COR-2021-0006
              . Three Mile_lsland, Unit 2 Decommissioning Funding Status Report -
Site-Specific Decommissioning Cost Estimate Page 4 of 4
* Notes:              .
(1)  Withdrawals reflect the project remaining in the PDMS condition until mid-2022.
(2)  Wthdrawals reflect the project In decommissioning starting mid-2022 to mid-2037.
(3) Wthctawals reflect the project In deais m9'enal storage management starting mid-2037 through 2053.
(4) Withdrawals reflect the ISFSI decommissioning and license termination by the end of 2054.
(5)  Withdrawal amounts are net cost including .allowed DOE reimbursements fa debris material ma~gement.                          * .
- (6)  A disbursement of decommlllSlonlng trust funds occurred.in Decembe'r 2020 in the amount of
        $8,059,318 ~or planning and licensIn*g cost incurred by TMl2 Solutions pnor to project closing.
(7) 'Mthdrawals are estimated based upon a site-specific decommissioning cost estimate as presented ,In PSDAR Revision 4, dated Marcil 17, 2021.
 
Attachment 3 TMl2-RA-COR-2021-0006 Three Mile Island, Unit 2 Financial Assurance Status Report Page 1 of 1
: 1. Formal decommissioning has not *started at Three Mile Island Unit 2. A disbursement of decommissioning trust funds occurred in December 2020 in the amount of $8,059,318 for planning and licensing cost incurred by TMl2 Solutions prior to project closing.
: 2. Decommissioning funds estimate<;! to b~Hequired pursuant to 10 CFR 50.75(b) and (c) are
  *based upon a site-specific Decommi_ssioning Cost Estimate as presented in PSDAR Revision 4, *dated March 17, 2921.
* NRC License Termination                      $1,044,364,000
: 3. The amount accumu_lated in external trustfunds as of December 31, 2020:
After Tax
                                                                              $862,549,586
: 4. There *are no longer any funds being collected from the ratepayers.
: 5. There are no modifications to the licensee's current method of providing fo,ancial assurance.
: 6. There were no amendments to the trust agreements for the above-mentioned owner of Three Mile Island Unit 2.
: 7. Mathematical rounding was performed during the development of the supporting calculations.
: 8.
 
==References:==
 
A Letter from USNRC. to Halnon, G.H. (GPU Nuclear, Inc.), "Three _Mile. Island Nuclear Station, Unit No. 2 - Order Approving Tran$fer of License from the FirstEnergy Companies to TMl-2 Solutions, LLC and Draft Conforming Administrative.License Amendment (EPID L-2019-LLA-0257)," d~ed December 2, 2020.
* J:3. Notification of ,;Amended Post-Shutdown Decommissioning Activities Report''
(PS DAR) for Three Mile Island, Unit 2 in Accordance with 10 CFR 50:8~(a)(7),
* Revision 4, dated March 17, 2021.}}

Revision as of 13:10, 9 September 2021

Decommissioning Fund Status Report
ML21099A115
Person / Time
Site: Three Mile Island Constellation icon.png
Issue date: 03/31/2021
From: Van Noordennen G
TMI-2 Solutions
To:
Office of Nuclear Reactor Regulation
References
TMl2-RA-COR-2021-0006
Download: ML21099A115 (9)
v • d • e


Text

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TMJ-2 SOLUTIONS March 31, 2021 TMl2-RA-COR-2021-0006 10 CFR 50.75 10 CFR 50.82 -

U.S. Nuclear Regulatory Commission ATTN; Document Control 0!3sk Wash_ington, D.C. 20555-0001

SUBJECT:

Decommissio_ning_Fund Status Report-:-Three Mile Island, Unit2 Three Mile Island, Unit 2 . _

NRC Possession Only License No. DPR-73 Docket No. 50-320

  • Pursuant to 10 CFR 50.75 and 10 CFR 50.82, TMl-2 Solutions. is hereby submitting the following three reports to the Nuclear Regulatory Commission (NRC) for Three Mile Island Unit 2, for the year ending December 31, 2020. Attachme!lt 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 decommission.ing cost estimate (DCE) .. 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 infomiatior:, is required, please_contact me at 860-462-9707.

Sincerely, Gerard P. Van Noordennen Mar 312021 11;47 AM Gerard van Noordennen .

Senior Vice President Regulatory Affairs TMl-2 Solutions, LLC Attachments:

1. Three Mile Island, Unit 2Decommissioning Funding Status Report- NRC F9m1ula i Three Mile Island, Unit 2 Decommissioning Funding Status Report:....

Site-Specific Decommissioning- Cost Estimate

3. Three Mile *Island , Unit 2 Financial Assurance Status Report cc:

NRC Region I Administrator NRC Project Manager NRC Lead Inspector

TMl-2 Service List Ken Robuck Director, Bureau of Radiation Protection, President and CEO Department of Environmental Protection, Energy Solutions Commonwealth of Pennsylvania 299 South Main Street, Suite 1700 Rachael Carson State Office BLDG.

Salt Lake City, UT 84111 13TH Floor P.O. Box 8469 John Sauger Harrisburg, PA 17105-8469 President and Chief Nuclear Officer Reactor D&D Chief, Division of Nuclear Safety, Bureau Energy Solutions of Radiation Protection, 121 W. Trade Street, Suite 2700 Department of Environmental Protection, Commonwealth of Pennsylva_nia Charlotte, NC 28202 Rachael Carson State Office BLDG.

Mike Lackey 13TH Floor Senior Vice President P.O. BOX 8469 D&D Operations Harrisburg, PA 17105-8469 Energy Solutions 121 W. Trade Street, Suite 2700 Chairman, Board of County Charlotte, NC 28202 Commissioners, Dauphin County 112 Market Street Gerard van Noordennen ?th Floor Senior Vice President Regulatory Affairs Harrisburg, PA 17101 Energy Solutions 121 W. Trade Street, Suite 2700 Chairman, Board of Supervisors of Charlotte, NC 28202 Londonderry Township 783 S. Geyers Church Rd.

Scott Baskett Middletown PA 17057 Project Director TMl-2 Solutions 121 W. Trade Street, Suite 2700 Charlotte, NC 28202 Russ Workman General Counsel Energy Solutions 299 South Main Street, Suite 1700 Salt Lake City, UT 84111 Daniel F. Stenger Hogan Lovells US LLP 555 13th St NW Washington, D.C. 20004

Attachment 1 TMl2-RA-COR-2021-0006 Three Mile Island, Unit 2 Decommissioning Funding Status Report - NRC Formula Page 1 of 2 This report reflects the TMl-2 Solutions ownership interests in Three Mile Island, Unit 2 as of December 31, 2020.

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

$503,627,371

2. The amount accumulated in external trust funds:

AfterTax

$862,549,586

3. There are no longer any funds being 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 Three Mile Island, Unit 2 transitions from a Post-Defueling Monitored Storage status to decommissioning in 2022.

5. There are no contracts upon which the owners/licensees are relying upon pursuant to 10 CFR 50.75(e)(1)(v).
6. There are no modifications to the licensee's current method of providing financial assurance.
7. The above-mentioned owner of Three Mile Island Unit 2, TMl-2 Solutions, became the TMl-2 licensee on December 18, 2020, following the closing specified in the October 15, 2019 Asset Purchase and Sale Agreement The trust agreement has not been amended since the closing.
8. Mathematical rounding was performed during the development of the supporting calculations.

ATTACHMENT 1 TMl2-RA-COR-2021-0006 Three Mile Island, Unit 2 Decommissioning Funding Status Report - NRC Formula Page 2 of 2 Schedule 1 TMl-2 Solutlons, LLC.

Calculation of Minimum Financial Assurance Amount December 31, 2020 THREE MILE ISLAND NUCLEAR STATION, UNIT 2 Pennsylvanla Regions Labor (L) = t-.hrtheast Energy (E) = National Waste Burial ( B) = Generic For PWR Unit Adjustment Escalation Factor Ratio 1 Factor L= 3.060 0.65 1.989 E= 2.030 0.13 0.264 B= 12.793 0.22 2.814 PWR Escalation Factor= 5.067 Base Amount for PWR between 1200 Mwt and 3400 MWt = ($75 + 0.0088P) million (P = power level in megawatts thermal= 2772)

($75 + 0.0088(2772)) million= $99,393,600 1

Escalated Amount for unit = 99,393,600 = $503,627.371 NoE 1: Mathematical rounding was perfonned during the development ci the supporting calculations

Attachment 2 TMl2-RA-COR-2021-0006 Three Mile Island, 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 Estimate as presented in PSDAR Revision 4, dated March 17, 2021.

NRC License Termination $1,044,364,000

2. The amount accumulated in external trust funds as of December 31, 2020:

AfterTax

$862,549,586

3. There are no longer any funds being 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 0.00%

Estimated After-Tax Rate of Return 2.00%

Year of Site Restoration Completion 2054 Three Mile Island, Unit 2 transitions from a Post-Defueling Monitored Storage status to decommissioning in 2022.

All costs are based on a site-specific decommissioning cost study, Decommissioning Cost Estimate as presented in PSDAR Revision 4, dated March 17, 2021 .

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.
7. The above-mentioned owner of Three Mile Island Unit 2; TMl-2 Solutions, became the TMl-2 licensee on December 18, 2020, following the closing specified in the October 15, 2019 Asset Purchase and Sale Agreement The trust agreement has not been amended since the closing.
8. Site Specific Cost Analysis Assumptions 10 CFR 50. 75(e)(1 )(i), states, in part, that

Attachment 2 TMl2-RA-COR-2021-0006 Three Mile Island, Unit 2 Decommissioning Funding Status Report -

Site-Specific Decommissioning Cost Estimate Page 2 of 4 A licensee that has prepaid funds based on a site-specific estimate under 50.75(b)(1) 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 offub.Jre 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.

In accordance with Regulatory Guide 1.159, Revision 2, Assuring the A vailabiHty of FLD1ds

'for Decommissioning Nuclear Reactors, a facility specific analysis may be used to demonstrate the adequacy of decommissioning funds, provided that:

NRG-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(c)(1) and (2).

The site-specific radiological decommissioning cost estimate is $1,044,364,000 which is greater than the 10 CFR 50.75(c) cost estimate of $503,627,371. The analysis assumes a 2 percent yearly rate of return. The analysis also assumes that, upon approval of the

. license transfer amendment, the project will enter directly into decommissioning. The cash flows were contained in a decommissioning cost estimate that was prepared for Three Mile Island Unit 2. The cash flow analysis assumes the yearly expenses are incurred at mid-year.

Schedule 1 provides the site-specific analysis. The analysis values are in 2020 dollars.

The analysis is based on TMl-2 transitioning from Post-Defueling Monitored Storage stab.Js to decommissioning in 2022 and includes expenditures for license termination costs only.

9. Mathematical rounding was performed during the development of the supporting calculations.
10.

References:

A. Letter from USNRC to Halnon, G.H. (GPU Nuclear, Inc.), aThree Mile Island Nuclear Station, Unit No. 2 - Order Approving Transfer of License from the RrstEnergy Companies to TMl-2 Solutions, LLC and Draft Conforming Administrative License Amendment (EP ID L-2019-LLA-0257)," dated December 2, 2020.

B. Notification of "Amended Post-Shutdown Decommissioning Activities Report

(PS DAR) for Three Mile Island, Unit 2 in Accordance with 10 CFR 50.82(a)(7),

Revision 4, dated March 17, 2021.

Attachment 2 .

TMl2-RA-COR-2021-0006 Three Mile Island, Unit 2 Decorm,issioning Funding Status Report -

Site-Specific Decommissioning Cost Estimate Page 3 of 4 Schedule 1 TMl-2 SOLUTIONS, LLC.

Funding Analysis December 31, 2020 THREE MILE ISLAND NUCLEAR STATION, UNIT 2 After-Tax Estimated Net Investment Rate 2.00%

Estimated Escalation Rate 0.00%

  • Estimated After-Tax Rate of Return 2.00%

Qualified Trust Balance on ~cember 31, 2020 862,549,586 After-Tax_

No_n-Quallfied Trust Balance on D~cember 31, 2020 TotaJ 862,549,586 Beginning Ending Year Balance Deposits Earnings WrthdrawaJ Balance 2020 $ 862,549,586 $ - $ - $ - $ 862,549,586 2021 * $ 862,549,586 $ - *$ 16,936,809 *s 31,418,287 *s 848,068,108

  • 2022 $- 848,068,108 $ - $ 16,461,121 $ 50P24,122 $ 814,505,107 2023 $ 814,505,107* $ - $ 15,604,289 *$ 68,581,309 .$ 761,528P87 202'i $ 761,528,087 $ *- $ 14,529,698 $ 70P86,339 $ 705j71,446 2025 $ 705,971,446 $ - .$ 13,404,866 $ 71,456,339 *s 647,919,973 2026 '$ 647,919,973 $ - $ 12,232,401 $ 72,599,868 $ 587,552,506 2027 $ . 587,552,506 $ - $ 11,182,487 $
  • 56,856,284 $ 541,878,709 2028 $ 541,878,709 $' - $ 10,356,368 s* 48,120,627 $ -
  • 504,114,450 2029 $ 504,114,450 $ - $ 9,803,396 $ 27,889,339 $ 486,028,506 2030 . $ 486P28,506 $ - $ 9,427,032 *$ 29,353,813 $ 466,101,725 2031 $ 466,101,725 $ - $ 8,887,041 $ 43,499,325 $ 431,489,441 2032 $ 431,489,441 $ - $ 8,082;032 $ 54,775,656 $ 384,795,818 2033 $ 384 795,818 $ - $ 7P76,307 $ 61,960,930 $ 329,911195 2034 $ 329,911,195 $ - $ 5,568,673 $ 102,955,072 $ 232,524,796 2035 $ 232,524,796 $ - $
  • 3,596,590 $ 105,390,563 $ ,130,730,823 2036 $ 130,730;823 $ -: $ 1,816,682 $ 79,793,491 $ 52,754,014 2037 $ 52,754,014 $ - *s 954,300 $ 1op18,020 $ 43,630,294 2020- 2037- $ 862,549,586 $ - $ 165,920,092 $ 984,839,384 $ 43,630,294 2038-2054 $ 43,630,294 $ 7,682,391 $ 8,211,931 $ 59,524,617 $ (O)

Total $ 7,682,391 $ 174,132,023 $ 1,044,364,000

Attachment 2 TMl2-RA-COR-2021-0006

. Three Mile_lsland, Unit 2 Decommissioning Funding Status Report -

Site-Specific Decommissioning Cost Estimate Page 4 of 4

  • Notes: .

(1) Withdrawals reflect the project remaining in the PDMS condition until mid-2022.

(2) Wthdrawals reflect the project In decommissioning starting mid-2022 to mid-2037.

(3) Wthctawals reflect the project In deais m9'enal storage management starting mid-2037 through 2053.

(4) Withdrawals reflect the ISFSI decommissioning and license termination by the end of 2054.

(5) Withdrawal amounts are net cost including .allowed DOE reimbursements fa debris material ma~gement. * .

- (6) A disbursement of decommlllSlonlng trust funds occurred.in Decembe'r 2020 in the amount of

$8,059,318 ~or planning and licensIn*g cost incurred by TMl2 Solutions pnor to project closing.

(7) 'Mthdrawals are estimated based upon a site-specific decommissioning cost estimate as presented ,In PSDAR Revision 4, dated Marcil 17, 2021.

Attachment 3 TMl2-RA-COR-2021-0006 Three Mile Island, Unit 2 Financial Assurance Status Report Page 1 of 1

1. Formal decommissioning has not *started at Three Mile Island Unit 2. A disbursement of decommissioning trust funds occurred in December 2020 in the amount of $8,059,318 for planning and licensing cost incurred by TMl2 Solutions prior to project closing.
2. Decommissioning funds estimate<;! to b~Hequired pursuant to 10 CFR 50.75(b) and (c) are
  • based upon a site-specific Decommi_ssioning Cost Estimate as presented in PSDAR Revision 4, *dated March 17, 2921.
  • NRC License Termination $1,044,364,000
3. The amount accumu_lated in external trustfunds as of December 31, 2020:

After Tax

$862,549,586

4. There *are no longer any funds being collected from the ratepayers.
5. There are no modifications to the licensee's current method of providing fo,ancial assurance.
6. There were no amendments to the trust agreements for the above-mentioned owner of Three Mile Island Unit 2.
7. Mathematical rounding was performed during the development of the supporting calculations.
8.

References:

A Letter from USNRC. to Halnon, G.H. (GPU Nuclear, Inc.), "Three _Mile. Island Nuclear Station, Unit No. 2 - Order Approving Tran$fer of License from the FirstEnergy Companies to TMl-2 Solutions, LLC and Draft Conforming Administrative.License Amendment (EPID L-2019-LLA-0257)," d~ed December 2, 2020.

  • J:3. Notification of ,;Amended Post-Shutdown Decommissioning Activities Report

(PS DAR) for Three Mile Island, Unit 2 in Accordance with 10 CFR 50:8~(a)(7),

  • Revision 4, dated March 17, 2021.
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