TMI-11-026, Decommissioning Funding Status Report
| ML110950371 | |
| Person / Time | |
|---|---|
| Site: | Crane  |
| Issue date: | 03/30/2011 |
| From: | Lash J GPU Nuclear |
| To: | Document Control Desk, NRC/FSME |
| References | |
| TMI-11-026 | |
| Download: ML110950371 (12) | |
Text
NUCLEAR GPU Nuclear, Inc.
Three Mile Island Nuclear Station Route 441 South Post Office Box 480 Middletown, PA 17057-0480 Tel 717-948-8461 March 30, 2011 TMI-1 1-026 10 CFR 50.75 ATTN: Document Control Desk United States 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(f)(1), GPU Nuclear, Inc. is hereby submitting the Decommissioning Funding Status Report for Three Mile Island Nuclear Station, Unit 2 for the year ending December 31, 2010.
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) 761-6071.
Sincerely,
-Jafmes H. Lash Chief Nuclear Officer
Attachment:
Decommissioning Funding Status Report Three Mile Island Nuclear Station, Unit 2 As of December 31, 2010 cc: NRC Region I Administrator NRC Project Manager NRC Resident Inspector
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Attachment TMI-1 1-026 Decommissioning Funding Status Report Three Mile Island Nuclear Station, Unit 2 As of December 31, 2010 Page 1 of 11
- 1. Decommissioning fund estimate, pursuant to 10 CFR 50.75(b) and (c) is based upon a site specific decommissioning cost study, Decommissioning Cost Analysis for Three Mile Island Unit 2, dated January 2009 and escalated to 2010 dollars:
Radiological Non-Radiological FirstEnergy Consolidated
$860,374,745 32,658,865
$893,03361 0
- 2. The amount accumulated in external trust funds at December 31, 2010:
Metropolitan Edison Company Pennsylvania Electric Company Jersey Central Power & Light Company FirstEnergy Corp. Consolidated
$297,193,872 156,540,599 185,565,006
$639.299,477
- 3. A schedule of the annual amounts remaining to be collected from ratepayers is attached as Schedule 1.
- 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 "Real" Rate of Return Rate of Escalation Year of Site Restoration Completion Dormancy Period Year of Three Mile Island Nuclear Station, Unit 1 Operating License Termination 100%
2.00%
2.81%
2054 2014-2043 2034 An additional assumption is the decommissioning activities for Three Mile Island Nuclear Station, Unit 2 will be synchronized with those of Three Mile Island Nuclear Station, Unit 1 such that the licenses for both units will be terminated concurrently.
- 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.
Attachment TMI-1 1-026 Page 2 of 11
- 7. There were no amendments to the Trust Agreements for the above-mentioned owners of Three Mile Island Nuclear Station, Unit 2.
- 8. Schedules 2 through 4 each contains an analysis of funding earnings and withdrawals for the three owners of Three Mile Island Nuclear Station, Unit 2; Metropolitan Edison Company, Pennsylvania Electric Company, and Jersey Central Power & Light Company; respectively. Schedule 5 contains a consolidated analysis for FirstEnergy Corp.
- 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. Financial Escalation Analysis for the Decommissioning of Three Mile Island Unit 2, dated May 2009.*
- Both documents were contained in GPU Nuclear letter, 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(f)(1)," dated March 29, 2010 (Accession Number ML100960464).
Attachment TMI-1 1-026 Page 3 of 11 Schedule 1 Schedule of Annual Amounts Remaining to be Collected Three Mile Island Nuclear Station, Unit 2 Annual Amounts to be Collected Jersey Central Pennsylvania Power & Light nv Electric Company Company1 Metropolitan Year Edison ComDa FirstEnergy Corp.
Consolidated 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 Total 723,628 723,628 Note 1: On February 19, 2010 the Jersey Central Power & Light Company filed a request with the New Jersey Board of Public Utilities to reduce the Nuclear Decommissioning Cost charge to zero. The New Jersey Board of Public Utilities has not yet approved the request.
Therefore, it is assumed that the Jersey Central Power & Light Company will collect at least
$723,628 in 2011.
Attachment TMI-1 1-026 Page 4 of 11 Schedule 2 Metropolitan Edison Company1 Reflects 50% ownership in Three Mile Island Nuclear Station, Unit 2 Estimated Weighted Average Net Investment Rate Estimated Escalation Rate Estimated AfterTax Rate of Return Qualified Trust Balance on December 31, 2010 Non-Qualified Trust Balance on December 31, 2010 After - Tax 2.00%
2.81%
4.81%
Pre Tax Equivalent 6.03%
Total Earnings 297,193,872 297,193,872 Withdrawals 2
Beginning Balance Ending Balance Year 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 2036 2037 2038 2039 2040 2041 2042 2043 2044 2045 2046 Deposits 297,193,872 311,488,897 326,471,513 342,174,793 358,633,400 375,883,667 393,963,671 412,913,324 432,774,455 453,590,906 475,408,628 498,275,783 522,242,849 547,362,730 573,690,877 601,285,408 630,207,236 660,520,204 692,291,226 725,590,434 760,491,334 797,070,967 835,410,081 875,593,305 916,396,598 958,558,300 1,002,688,761 1,048,890,541 1,097,256,457 1,147,888,508 1,200,887,834 1,256,378,258 1,314,471,741 1,312,346,177 1,265,721,381 1,198,295,749 14,295,025 14,982,616 15,703,280 16,458,608 17,250,267 18,080,004 18,949,653 19,861,131 20,816,451 21,817,723 22,867,155 23,967,065 25,119,881 26,328,147 27,594,531 28,921,828 30,312,968 31,771,022 33,299,208 34,900,900 36,579,633 38,339,114 40,183,225 42,055,793 43,990,701 46,015,962 48,136,280 50,355,916 52,679,551 55,111,826 57,658,424 60,324,483 60,226,936 58,087,204 54,992,869 51,572,976 (1,252,500)
(1,829,000)
(1,885,500)
(1,934,500)
(1,990,000)
(2,047,500)
(2,112,500)
(2,168,000)
(2,231,000)
(62,352,500)
(104,712,000)
(122,418,500)
(126,092,500) 311,488,897 326,471,513 342,174,793 358,633,400 375,883,667 393,963,671 412,913,324 432,774,455 453,590,906 475,408,628 498,275,783 522,242,849 547,362,730 573,690,877 601,285,408 630,207,236 660,520,204 692,291,226 725,590,434 760,491,334 797,070,967 835,410,081 875,593,305 916,396,598 958,558,300 1,002,688,761 1,048,890,541 1,097,256,457 1,147,888,508 1,200,887,834 1,256,378,258 1,314,471,741 1,312,346,177 1,265,721,381 1,198,295,749 1,123,776,226
Attachment TMI-1 1-026 Page 5 of 11 2047 2048 2049 2050 2051 2052 2053 2054 1,123,776,226 1,041,701,586 951,196,956 865,181,350 777,041,269 680,718,174 590,861,840 562,391,951 47,806,360 43,652,871 39,705,394 35,660,419 31,239,905 27,116,167 25,809,611 25,558,390 (129,881,000)
(134,157,500)
(125,721,000)
(123,800,500)
(127,563,000)
(116,972,500)
(54,279,500)
(31,032,500) 1,041,701,586 951,196,956 865,181,350 777,041,269 680,718,174 590,861,840 562,391,951 556,917,841 Note 1: Mathematical rounding was performed during the development of the supporting calculations.
Note 2: The withdrawals are Metropolitan Edison Company's share of the decommissioning expenditures contained in the Financial Escalation Analysis for the Decommissioning of Three Mile Island Unit 2, dated May 2009 (Reference B). The expenditures are assumed to be made at beginning of the year.
Attachment TMI-1 1-026 Page 6 of 11 Schedule 3 Pennsylvania Electric Company1 Reflects 25% ownership in Three Mile Island Nuclear Station, Unit 2 Estimated Weighted Average Net Investment Rate Estimated Escalation Rate Estimated AfterTax Rate of Return Qualified Trust Balance on December 31, 2010 Non-Qualified Trust Balance on December 31, 2010 After - Tax 2.00%
2.81%
4.81%
Pre Tax Equivalent 6.03%
Total Earnings 61,725,379 94,815,220 156,540,599 Withdrawals 2
Beginning Balance Ending Balance Year 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 2036 2037 2038 2039 2040 2041 2042 2043 2044 2045 2046 Deposits 156,540,599 164,070,202 171,961,979 180,233,350 188,902,574 197,988,788 207,512,049 217,493,378 227,954,810 238,919,436 250,411,461 262,456,252 275,080,398 288,311,765 302,179,561 316,714,398 331,948,361 347,915,077 364,649,792 382,189,447 400,572,759 419,840,309 440,034,628 461,200,293 482,727,655 504,988,368 528,290,212 552,687,196 578,228,591 604,968,394 632,960,318 662,269,569 692,955,580 693,610,915 672,099,277 640,273,837 7,529,603 7,891,777 8,271,371 8,669,224 9,086,214 9,523,261 9,981,330 10,461,431 10,964,626 11,492,025 12,044,791 12,624,146 13,231,367 13,867,796 14,534,837 15,233,963 15,966,716 16,734,715 17,539,655 18,383,312 19,267,550 20,194,319 21,165,666 22,153,611 23,175,213 24,244,594 25,364,234 26,536,395 27,763,553 29,048,174 30,393,251 31,801,511 31,831,586 30,844,361 29,383,810 27,764,647 (626,250)
(914,500)
(942,750)
(967,250)
(995,000)
(1,023,750)
(1,056,250)
(1,084,000)
(1,115,500)
(31,176,250)
(52,356,000)
(61,209,250)
(63,046,250) 164,070,202 171,961,979 180,233,350 188,902,574 197,988,788 207,512,049 217,493,378 227,954,810 238,919,436 250,411,461 262,456,252 275,080,398 288,311,765 302,179,561 316,714,398 331,948,361 347,915,077 364,649,792 382,189,447 400,572,759 419,840,309 440,034,628 461,200,293 482,727,655 504,988,368 528,290,212 552,687,196 578,228,591 604,968,394 632,960,318 662,269,569 692,955,580 693,610,915 672,099,277 640,273,837 604,992,234
Attachment TMI-1 1-026 Page 7 of 11 2047 2048 2049 2050 2051 2052 2053 2054 604,992,234 566,028,222 522,948,942 482,218,696 440,535,763 394,876,143 352,570,247 341,083,704 25,976,488 23,999,470 22,130,254 20,217,317 18,121,880 16,180,354 15,653,207 15,659,795 (64,940,500)
(67,078,750)
(62,860,500)
(61,900,250)
(63,781,500)
(58,486,250)
(27,139,750)
(15,516,250) 566,028,222 522,948,942 482,218,696 440,535,763 394,876,143 352,570,247 341,083,704 341,227,249 Note 1: Mathematical rounding was performed during the development of the supporting calculations.
Note 2: The withdrawals are Pennsylvania Electric Company's share of the decommissioning expenditures contained in the Financial Escalation Analysis for the Decommissioning of Three Mile Island Unit 2, dated May 2009 (Reference B). The expenditures are assumed to be made at beginning of the year.
Attachment TMI-1 1-026 Page 8 of 11 Schedule 4 Jersey Central Power & Light Company1 Reflects 25% ownership in Three Mile Island Nuclear Station, Unit 2 Estimated Weighted Average Net Investment Rate Estimated Escalation Rate Estimated AfterTax Rate of Return Qualified Trust Balance on December 31, 2010 Non-Qualified Trust Balance on December 31, 2010 After - Tax 2.00%
2.81%
4.81%
Pre Tax Equivalent 6.03%
Beginning Balance Total Earnings 155,881,034 29,683,972 185,565,006 Withdrawals 3
Year 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 2036 2037 2038 2039 2040 2041 2042 2043 2044 2045 2046 Deposits 2
Ending Balance 185,565,006 195,231,714 204,622,359 214,464,695 224,780,447 235,592,386 246,924,380 258,801,443 271,249,792 284,296,907 297,971,588 312,304,022 327,325,845 343,070,218 359,571,896 376,867,304 394,994,621 413,993,862 433,906,967 454,777,892 476,652,709 499,579,704 523,609,488 548,795,104 574,535,776 601,212,460 629,142,683 658,390,671 689,016,403 721,085,099 754,662,237 789,825,350 826,646,794 833,732,677 818,960,895 794,199,500 723,628 8,943,080 9,390,645 9,842,335 10,315,752 10,811,939 11,331,994 11,877,063 12,448,349 13,047,115 13,674,681 14,332,433 15,021,823 15,744,373 16,501,677 17,295,408 18,127,317 18,999,241 19,913,105 20,870,925 21,874,817 22,926,995 24,029,784 25,185,616 26,366,922 27,591,183 28,872,973 30,215,238 31,620,732 33,092,447 34,633,388 36,247,113 37,936,944 38,262,133 37,584,218 36,447,854 35,168,471 195,231,714 204,622,359 214,464,695 224,780,447 235,592,386 246,924,380 258,801,443 271,249,792 284,296,907 297,971,588 312,304,022 327,325,845 343,070,218 359,571,896 376,867,304 394,994,621 413,993,862 433,906,967 454,777,892 476,652,709 499,579,704 523,609,488 548,795,104 574,535,776 601,212,460 629,142,683 658,390,671 689,016,403 721,085,099 754,662,237 789,825,350 826,646,794 833,732,677 818,960,895 794,199,500 766,321,721 (626,250)
(914,500)
(942,750)
(967,250)
(995,000)
(1,023,750)
(1,056,250)
(1,084,000)
(1,115,500)
(31,176,250)
(52,356,000)
(61,209,250)
(63,046,250)
Attachment TMI-1 1-026 Page 9 of 11 2047 2048 2049 2050 2051 2052 2053 2054 766,321,721 735,117,658 700,171,579 667,965,742 635,217,242 598,921,801 566,430,501 565,230,636 33,736,437 32,132,671 30,654,663 29,151,750 27,486,059 25,994,950 25,939,885 26,441,262 (64,940,500)
(67,078,750)
(62,860,500)
(61,900,250)
(63,781,500)
(58,486,250)
(27,139,750)
(15,516,250) 735,117,658 700,171,579 667,965,742 635,217,242 598,921,801 566,430,501 565,230,636 576,155,648 Note 1: Mathematical rounding was performed during the development of the supporting calculations.
Note 2: On February 19, 2010 the Jersey Central Power & Light Company filed a request with the New Jersey Board of Public Utilities to reduce the Nuclear Decommissioning Cost charge to zero. The New Jersey Board of Public Utilities has not yet approved the request. Therefore, it is assumed that the Jersey Central Power & Light Company will collect at least $723,628 in 2011.
Note 3: The withdrawals are Jersey Central Power & Light Company's share of the decommissioning expenditures contained in the Financial Escalation Analysis for the Decommissioning of Three Mile Island Unit 2, dated May 2009 (Reference B). The expenditures are assumed to be made at beginning of the year.
Attachment TMI-1 1-026 Page 10 of 11 Schedule 5 FirstEnergy Corp. Consolidated1 Three Mile Island Nuclear Station, Unit 2 After - Tax Estimated Weighted Average Net Investment Rate 2.00%
Estimated Escalation Rate 2.81%
Estimated AfterTax Rate of Return 4.81%
Pre Tax Equivalent 6.03%
Qualified Trust Balance on December 31, 2010 Non-Qualified Trust Balance on December 31, 2010 Total Earnings 514,800,284 124,499,193 639,299,477 Withdrawals 3
Beginning Balance Year 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 2036 2037 2038 2039 2040 2041 2042 2043 2044 2045 2046 639,299,477 670,790,813 703,055,851 736,872,838 772,316,421 809,464,841 848,400,100 889,208,145 931,979,056 976,807,249 1,023,791,678 1,073,036,057 1,124,649,092 1,178,744,713 1,235,442,334 1,294,867,110 1,357,150,218 1,422,429,143 1,490,847,985 1,562,557,773 1,637,716,802 1,716,490,980 1,799,054,196 1,885,588,703 1,973,660,029 2,064,759,127 2,160,121,656 2,259,968,409 2,364,501,451 2,473,942,001 2,588,510,389 2,708,473,177 2,834,074,115 2,839,689,769 2,756,781,553 2,632,769,086 Deposits 2
723,628 Ending Balance 30,767,708 32,265,038 33,816,986 35,443,583 37,148,420 38,935,259 40,808,045 42,770,912 44,828,193 46,984,429 49,244,380 51,613,034 54,095,621 56,697,621 59,424,776 62,283,108 65,278,925 68,418,842 71,709,788 75,159,029 78,774,178 82,563,216 86,534,507 90,576,326 94,757,098 99,133,529 103,715,753 108,513,042 113,535,550 118,793,388 124,298,788 130,062,938 130,320,654 126,515,784 120,824,533 114,506,095 (2,505,000)
(3,658,000)
(3,771,000)
(3,869,000)
(3,980,000)
(4,095,000)
(4,225,000)
(4,336,000)
(4,462,000)
(124,705,000)
(209,424,000)
(244,837,000)
(252,185,000) 670,790,813 703,055,851 736,872,838 772,316,421 809,464,841 848,400,100 889,208,145 931,979,056 976,807,249 1,023,791,678 1,073,036,057 1,124,649,092 1,178,744,713 1,235,442,334 1,294,867,110 1,357,150,218 1,422,429,143 1,490,847,985 1,562,557,773 1,637,716,802 1,716,490,980 1,799,054,196 1,885,588,703 1,973,660,029 2,064,759,127 2,160,121,656 2,259,968,409 2,364,501,451 2,473,942,001 2,588,510,389 2,708,473,177 2,834,074,115 2,839,689,769 2,756,781,553 2,632,769,086 2,495,090,180
Attachment TMI-1 1-026 Page 11 of 11 2047 2048 2049 2050 2051 2052 2053 2054 2,495,090,180 2,342,847,466 2,174,317,478 2,015,365,788 1,852,794,274 1,674,516,118 1,509,862,589 1,468,706,292 107,519,285 99,785,012 92,490,310 85,029,486 76,847,844 69,291,471 67,402,703 67,659,446 (259,762,000)
(268,315,000)
(251,442,000)
(247,601,000)
(255,126,000)
(233,945,000)
(108,559,000)
(62,065,000) 2,342,847,466 2,174,317,478 2,015,365,788 1,852,794,274 1,674,516,118 1,509,862,589 1,468,706,292 1,474,300,738 Note 1: Mathematical rounding was performed during the development of the supporting calculations.
Note 2: On February 19, 2010 the Jersey Central Power & Light Company filed a request with the New Jersey Board of Public Utilities to reduce the Nuclear Decommissioning Cost charge to zero. The New Jersey Board of Public Utilities has not yet approved the request. Therefore, it is assumed that the Jersey Central Power & Light Company will collect at least $723,628 in 2011.
Note 3: The withdrawals are the decommissioning expenditures contained in the Financial Escalation Analysis for the Decommissioning of Three Mile Island Unit 2, dated May 2009 (Reference B). The expenditures are assumed to be made at beginning of the year.