TMI-14-015, Decommissioning Funding Status Report

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Decommissioning Funding Status Report
ML14090A403
Person / Time
Site: Crane Constellation icon.png
Issue date: 03/28/2014
From: Harden P
GPU Nuclear
To:
Document Control Desk, NRC/FSME
References
TMI-14-015
Download: ML14090A403 (9)
v • d • e


Text

(T4PU GPU Nuclear, Inc.

Three Mile bland Nuclear Station NUCLEAR Route 441 South Post Office Box 480 Middletown, PA 17057-0480 Tel 717-948-8461 March 28, 2014 TMI-14-015 10 CFR 50.75 10 CFR 50.82 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..

Attachment 1 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 $252,211,260 Pennsylvania Electric Company 126,105,630 Jersey Central Power & Light Company 126,105,630 FirstEnergy Corp. Consolidated $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 Escalation Factor1 Ratio Factor2 2.594 0.65 1.686 2.568 0.13 0.334 13.885 0.22 3.055 PWR Escalation Factor = 5.075 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 Escalated Amount for unit2 =

99,393,600 x 5.075 = $504,422,520 Owner/Licensee Ownership Pennsylvania Electric Company 25% $126,105,630 Jersey Central Power & Light Company 25% $126,105,630 Metropolitan Edison Company 50% $252,211,260 FirstEnergy Corp. Consolidated 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.

Attachment 2 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 $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.

2. 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

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. FinancialEscalation 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 Pre Tax Equivalent Estimated Net Investment Rate 2.00%

Estimated Escalation Rate 2.81%

Estimated AfterTax Rate of Return 4.81% 6.03%

Qualified Trust Balance on December 31, 2013 697,699,517 Non-Qualified Trust Balance on December 31, 2013 22,169 Total 697,721,686 Beginning Ending 4 2 3 Year Balance Deposits Earnings1 Withdrawal . Balance 2014 697,721,686 33,560,413 731,282,099 2015 731,282,099 35,174,669 766,456,768 2016 766,456,768 36,866,571 803,323,339 2017 803,323,339 38,639,853 841,963,191 2018 841,963,191 40,498,429 882,461,621 2019 882,461,621 42,446,404 924,908,025 2020 924,908,025 44,488,076 969,396,101 2021 969,396,101 46,627,952 1,016,024,053 2022 1,016,024,053 48,870,757 1,064,894,810 2023 1,064,894,810 51,221,440 1,116,116,250 2024 1,116,116,250 53,685,192 1,169,801,442 2025 1,169,801,442 56,267,449 1,226,068,891 2026 1,226,068,891 58,973,914 1,285,042,805 2027 1,285,042,805 61,810,559 1,346,853,364 2028 1,346,853,364 64,783,647 1,411,637,011 2029 1,411,637,011 67,899,740 1,479,536,751 2030 1,479,536,751 71,165,718 1,550,702,469 2031 1,550,702,469 74,588,789 1,625,291,257 2032 1,625,291,257 78,176,509 1,703,467,767 2033 1,703,467,767 81,936,800 1,785,404,567 2034 1,785,404,567 85,757,469 (2,505,000) 1,868,657,036 2035 1,868,657,036 89,706,454 (3,658,000) 1,954,705,489 2036 1,954,705,489 93,839,949 (3,771,000) 2,044,774,438 2037 2,044,774,438 98,167,552 (3,869,000) 2,139,072,990 2038 2,139,072,990 102,697,973 (3,980,000) 2,237,790,963 2039 2,237,790,963 107,440,776 (4,095,000) 2,341,136,738 2040 2,341,136,738 112,405,455 (4,225,000) 2,449,317,193 2041 2,449,317,193 117,603,595 (4,336,000) 2,562,584,788 2042 2,562,584,788 123,045,706 (4,462,000) 2,681,168,495 2043 2,681,168,495 122,965,894 (124,705,000) 2,679,429,389 2044 2,679,429,389 118,807,259 (209,424,000) 2,588,812,648 2045 2,588,812,648 112,745,229 (244,837,000) 2,456,720,877 TMI-14-015 Page 4 of 4 Schedule 1 (Continued)

Beginning Ending 4 Year Balance Deposits Earnings1 Withdrawal2,3 Balance 2046 2,456,720,877 106,038,176 (252,185,000) 2,310,574,052 2047 2,310,574,052 98,644,060 (259,762,000) 2,149,456,112 2048 2,149,456,112 90,482,887 (268,315,000) 1,971,623,999 2049 1,971,623,999 82,740,754 (251,442,000) 1,802,922,754 2050 1,802,922,754 74,810,976 (247,601,000) 1,630,132,730 2051 1,630,132,730 66,137,824 (255,126,000) 1,441,144,554 2052 1,441,144,554 58,066,299 (233,945,000) 1,265,265,852 2053 1,265,265,852 55,637,600 (108,559,000) 1,212,344,452 2054 1,212,344,452 55,328,442 (62,065,000) 1,205,607,893 TOTAL (2,552,867,000)

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 EscalationAnalysis 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.

Attachment 3 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. FinancialEscalationAnalysis 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).

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