IR 05000390/2008404

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Enclosure transmitted herewith contains Sensitive Unclassified Non-Safeguards Information. When separated from enclosure, this transmittal document is decontrolled. July 30, 2008 EA-08-121

Tennessee Valley Authority ATTN: Mr. WilliamChief Nuclear Officer and Executive Vice President 6A Lookout Place 1101 Market Street Chattanooga, TN 37402-2801

SUBJECT: WATTS BAR NUCLEAR PLANT - NRC REPORT 05000390/2008404 AND 05000391/2008404

Dear Mr. Campbell:

This refers to the Nuclear Regulatory Commission=s (NRC) in-office inspection of Tennessee Valley Authority=s (TVA) Watts Bar Nuclear Plant, completed on May 15, 2008. The results of the inspection, including the identification of a finding that was preliminarily determined to be greater than very low security significance (i.e., greater than Green as determined by the Physical Protection Significance Determination Process), and an apparent violation, were transmitted to you in NRC Inspection Report 05000390,391/2008402, dated May 21, 2008.

At your request, a Regulatory Conference was held on June 20, 2008, to further discuss your views on this issue. During the meeting your staff described your assessment of the significance of the finding, detailed corrective actions, and your root cause determination for the issue.

The enclosure documents a finding that was determined to be greater than very low security significance (i.e., greater than Green as determined by the Physical Protection Significance Determination Process). TVA subsequently corrected the deficiency.

You have 30 calendar days from the date of this letter to appeal the staff=s determination of significance for the identified finding and violations. Such appeals will be considered to have merit only if they meet the criteria given in NRC Inspection Manual Chapter 0609, Attachment 2. TVA 2 You are required to respond to this letter and should follow the instructions specified in the enclosed Notice when preparing your response.

Because plant performance for this issue has been determined to be in the regulatory response band, we will use the NRC Action Matrix to determine the most appropriate NRC response for this event. We will notify you, by separate correspondence, of that determination.

In accordance with 10 CFR 2.390 of the NRC=s ARules of Practice,@ a copy of this letter will be available electronically for public inspection in the NRC Public Document Room or from the Publicly Available Records (PARS) component of NRC=s document system (ADAMS). ADAMS is accessible from the NRC Web site at http://www.nrc.gov/reading-rm/adams.html (the Public Electronic Reading Room). However, because of the security-related concerns contained in the enclosures, and in accordance with 10 CFR 2.390, a copy of this letter=s enclosures will not be available for public inspection.

Should you have any questions concerning this letter, please contact Mr. Kriss Kennedy, Director, Division of Reactor Safety, at (404) 562-4601.

Sincerely,/RA/ Luis A. Reyes Regional Administrator Docket Nos.: 50-390, 50-391 License Nos.: NPF-90, CPPR-92

Enclosures:

1. Inspection Report 05000390/2008404 and 05000391/2008404 (OUO/Security Related Information) 2. Notice of Violation (OUO/Security Related Information) TVA 3 cc w/encls: Ashok S. Bhatnagar Senior Vice President Nuclear Generation Development and Construction Tennessee Valley Authority 6A Lookout Place 1101 Market Street Chattanooga, TN 37402-2801

(Vacant)

Vice President Nuclear Support Tennessee Valley Authority 3R Lookout Place 1101 Market Street Chattanooga, TN 37402-2801

Walter M. Justice, II Interim Vice President Nuclear Engineering & Technical Services Tennessee Valley Authority 6A Lookout Place 1101 Market Street Chattanooga, TN 37402-2801

Michael D. Skaggs (WB2)

Site Vice President Watts Bar Nuclear Plant Tennessee Valley Authority P. O. Box 2000 Spring City, TN 37381

General Counsel Tennessee Valley Authority 6A West Tower 400 West Summit Hill Drive Knoxville, TN 37902

John C. Fornicola General Manager Nuclear Assurance Tennessee Valley Authority 3R Lookout Place 1101 Market Street Soddy Daisy, TN 37384-2000 Chattanooga, TN 37402-2801

Robert H. Bryan, Jr.

General Manager Licensing and Industry Affairs Tennessee Valley Authority 4X Blue Ridge 1101 Market Street Chattanooga, TN 37402-2801

Beth A. Wetzel Manager Corporate Nuclear Licensing and Industry Affairs Tennessee Valley Authority 4X Blue Ridge 1101 Market Street Chattanooga, TN 37402-2801

James D. Smith Manager Licensing and Industry Affairs Tennessee Valley Authority Sequoyah Nuclear Plant P.O. Box 2000 Michael J. Lorek Plant Manager Watts Bar Nuclear Plant Tennessee Valley Authority P.O. Box 2000 Spring City, TN 37381

cc w/o encls:

County Executive 375 Church Street Suite 215 Dayton, TN 37321

County Mayor P.O. Box 156 Decatur, TN 37322 TVA 4 cc w/o encls: Continued from Page 3 Lawrence E. Nanney Director TN Dept. of Environment & Conservation Division of Radiological Health 3rd Floor, L&C Annex 401 Church Street Nashville, TN 37243-1532

Masoud Bajestani Vice President Watts Bar Unit 2 Watts Bar Nuclear Plant Tennessee Valley Authority Watts Bar Unit 2 P.O. Box 2000 Spring City, TN 37381

Ann Harris 341 Swing Loop Rockwood, TN 37854

James H. Bassham Director Tennessee Emergency Management Agency P.O. Box 41502 Nashville, TN 37204-150 TVA 5 Distribution w/encls: R. Borchardt, OEDO C. Carpenter, OE E. Julian, SECY B. Keeling, OCA E. Leeds, NRR R. Zimmerman, NSIR C. Marco, OGC J. Moore, OGC D. Decker, OCA Enforcement Coordinators RI, RIII, RIV E. Hayden, OPA G. Caputo, OI H. Bell, OIG M. Ashley, NRR D. Riffle, NSIR G. West, NSIR L. Reyes, RII V. McCree, RII K. Kennedy, RII L. Wert, RII E. Guthrie, RII J. Munday, RII S. Sparks, RII L. Slack, RII C. Evans, RII J. Shehee, RII OEMAIL

Distribution without enclosures: PUBLIC

G PUBLICLY AVAILABLE G X NON-PUBLICLY AVAILABLE G SENSITIVE G NON-SENSITIVE ADAMS: G X Yes ACCESSION NUMBER:_________________________ OFFICE RII:ORA RII:DRS RII:DRS RII:ORA OE NSIR SIGNATURE /RA/ /RA SSparks for/ /RA/A /RA via email/ /RA via email/ NAME CEVANS JMUNDAY KKENNEDY VMCCREE R. Barnes R. Correia DATE 7/15/2008 7/15/2008 7/15/2008 7/24/2008 7/21/2008 E-MAIL COPY? YES NO YES NO YES NO YES NO YES NO OFFICIAL RECORD COPY DOCUMENT NAME: I:/PSB2/ESCALATED ISSUES/WBN EA 08 121.DOC