L-16-171, Required Notification of Receipt of All Required Regulatory Approvals of the Proposed Transfer Actions and Documentary Evidence of Required Insurance

Required Notification of Receipt of All Required Regulatory Approvals of the Proposed Transfer Actions and Documentary Evidence of Required Insurance

ML16148A076
Person / Time
Site:	Perry
Issue date:	05/27/2016
From:	Harden P FirstEnergy Nuclear Operating Co
To:	Document Control Desk, Office of Nuclear Reactor Regulation
References
L-16-171, TAC MF6412
Download: ML16148A076 (8)

Text

FENOC

~Energy Nuclear Operating Company ~

76 South Main Street Akron. Ohio 44308 Paul A. Harden Senior Vice President and Chief Operating Officer May 27, 2016 L-16-171 Director, Office of Nuclear Reactor Regulation U.S. Nuclear Regulatory Commission Washington, DC 20555-0001

SUBJECT:

Perry Nuclear Power Plant Docket No. 50-440, License No. NPF-58 Required Notification of Receipt of All Required Regulatory Approvals of the Proposed Transfer Actions and Documentary Evidence of Required Insurance (CAC No. MF6412)

By letter dated April 15, 2016 [Agencywide Documents Access and Management System (ADAMS) Accession No. ML16078A092], the Nuclear Regulatory Commission (NRC) issued an Order approving the direct transfer of license for the Perry Nuclear Power Plant (PNPP) resulting from transfer of ownership interests from the Ohio Edison Company to FirstEnergy Nuclear Generation, LLC (FENGen). The Order includes requirements to complete the following actions:

• After receipt of all required regulatory approvals of the proposed direct transfer action, FirstEnergy Nuclear Operating Company (FENOC) shall inform the Director of the Office of Nuclear Reactor Regulation in writing of such receipt no later than 1 business day prior to the date of the closing of the direct transfer.

• FENOC and FENGen shall provide satisfactory documentary evidence to the Director of the Office of Nuclear Reactor Regulation, that as of the date of license transfer, the licensees reflected in the amended license have obtained the appropriate amount of insurance required by 10 CFR 140 and 10 CFR 50.54(w).

The documentary evidence of insurance is enclosed. All required regulatory approvals have been obtained and the transaction (closing) date is set for May 31, 2016. This fulfills the notification requirement specified in the Order.

Perry Nuclear Power Plant L-16-171 Page2 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- Fleet Licensing, at 330-315-6810.

Sincerely,

~

Enclosure:

Documentary Evidence of Insurance cc: NRC Region Ill Administrator NRC Resident Inspector NRR Project Manager

Enclosure L-16-171 Documentary Evidence of Insurance (5 Pages Follow)

.ArstEnefw. 76S. Main St.

Akron, Oh 44308

' 1-800-633-4766 May 27, 2016 Indemnity Specialist U.S. Nuclear Regulatory Commission Mail Stop 12D3 1 White Flint North Rockville, MD 20852 Re: FirstEnergy Nuclear Generation, LLC

Dear Mr. Olvera:

Commensurate with transfer of Ohio Edison Company's ownership in Perry Nuclear Power Plant to FirstEnergy Nuclear Generation, LLC, the following changes will be made to the nuclear liability and property insurance policies:

- Under Facility Form Policy No. NF-0291, Facility Worker Fonn Certificate No.

NW- 0644, and Secondary Financial Protection Certificate No. N-0102, Ohio Edison Company is deleted as Named Insured. Enclosed, please find an Acord Certificate of Insurance that provides evidence of financial protection which satisfies the requirements set forth in Section 170b. of the Atomic Energy Act of 1954, as amended, and the requirements of 10 CFR Part 140.

- The following Primary Property and Decontamination Liability Policies, and Decontamination Liability, Decommissioning Liability and Excess Property Insurance Policies, for the Perry Nuclear Power Plant are amended to delete Ohio Edison Company as an Insured: Pl6-067 and BX16-016. Enclosed, please find a letter from NEIL confirming these amendments.

Please feel free to contact me at (330) 761-4341 if you have any questions.

Sincerely, BY: Peter M. Nadel Manager, Corporate Insurance

ACORDe

~

CERTIFICATE OF LIABILITY INSURANCE THIS CERTIFICATE IS ISSUED AS A MATTER OF INFORMATION ONLY AND CONFERS NO RIGHTS UPON THE CERTIFICATE HOLDER. THIS I DATE (MM/DOIYYYY) 0512612016 CERTIFICATE DOES NOT AFFIRMATIVELY OR NEGATIVELY AMEND, EXTEND OR ALTER THE COVERAGE AFFORDED BY THE POLICIES BELOW. THIS CERTIFICATE OF INSURANCE DOES NOT CONSTITUTE A CONTRACT BETWEEN THE ISSUING INSURER(S), AUTHORIZED REPRESENTATIVE OR PRODUCER, AND THE CERTIFICATE HOLDER.

IMPORTANT: If the certificate holder is an ADDITIONAL INSURED, the policy(ies) must be endorsed. If SUBROGATION IS WAIVED, subject to the terms and conditions of the policy, certain policies may require an endorsement. A statement on this certificate does not confer rights to the certificate holder In Heu of such endorsement(&).

PRODUCER v~.,~v NAME:

MARSH USA INC.

540 W. MADISON r..

~~.t ....... I r.M Nol:

CHICAGO, IL 60661 E-MAIL ADDRESS:

Attn: chicago.c.ertRequest@marsh.com INSUftER(S) AFFORDING COVERAGE NAIC#

016265-Nude-Nucl~ 16-17 INSURER A , American Nuclear Insurers INSURED lNSURERB:

FirstEnergy Corporation Attn: Pete Nadel INSURERC:

pnadel@firstenergycorp.oom INSURERD:

76 Soulh Main Street Akron, OH 44308 INSURERE:

INSURERF:

COVERAGES CERTIFICATE NUMBER: CHl-005417270-06 REVISION NUMBER:9 THIS IS TO CERTIFY THAT THE POLICIES OF INSURANCE LISTED BELOW HAVE BEEN ISSUED TO THE INSURED NAMED ABOVE FOR THE POLICY PERIOD INDICATED. NOTWITHSTANDING ANY REQUIREMENT, TERM OR CONDITION OF ANY CONTRACT OR OTHER DOCUMENT INITH RESPECT TO WHICH THIS CERTIFICATE MAY BE ISSUED OR MAY PERTAIN, THE INSURANCE AFFORDED BY THE POLICIES DESCRIBED HEREIN IS SUBJECT TO ALL THE TERMS, EXCLUSIONS AND CONDITIONS OF SUCH POLICIES. LIMITS SHOWN MAY HAVE BEEN. REDUCED BY PAID CLAIMS.

INSR AODL !SUBR POLICYEFF LTR TYPE OF INSURANCE *~~... lun~ POLICY NUMBER

'=~~. LIMITS

-D COMMERCIAL GENERAL LIABILllY Cl.AIM5-MADE D OCCUR EACH OCCURRENCE DAMAGE TO RENTED .

PREMISES IEB occuriencel s

-- MED EXP (Any one person)

PERSONAL & ADV INJURY GEN'L AGGREGATE LIMIT APPLIES PER: GENERALAGGREGATE $

~ POLICY DPRO- JECT DLOC PRODUCTS - COMP/OP AGG $

OTHER: $

AUTOMOBILE LIABILITY ~~~~~~~1~1NGLE LIMIT $

ANY AUTO ALLOV\INED AUTOS HIRED AUTOS E SCHEDULED AUTOS NON-OV\INED AUTOS BODILy INJURY (Per person)

BODILY INJURY (Per accident) $

PROPERTY DAMAGt:

tPer.-...1 ....... M, I $

- UMBREl.J.A UAB EXCESSLIAB HOCCUR CLAIMS-MAOE EACH OCCURRENCE AGGREGATE OED I I RETENTION$ $

WORKERS COMPENSATION AND EMPLOYERS' LIABILITY YIN I ~~TUTE I IOTH- ER -

ANY PROPRIETOR/PARTNER/EXECUTIVE E.L. EACH ACCIDENT

~

OFFICER/MEMBER EXCLUDED? NIA (Mandalory .In NH) E.L. DISEASE - EA EMPLOYEE $

~i;M~~ ~~~PERATIONS below E.L. DISEASE- POLICY LIMIT $

A Nuclear Energy See Attached Acord 101 01/0112016 01/0112017 See Attaclled Acord 101 Liability Insurance DESCRIPTION OF OPERATIONS I LOCATIONS I VEHICLES !ACORD 101, Additional Remarka Schedule, may be -clled II moN space Is required)

Effective on the closing date of asset transfer, the insurance policy and certificates for the Pell)' Nuclear Power Plant wiU be amended to delete Ohio Edison Company as a Named Insured.

CERTIFICATE HOLDER CANCELLATION Document Control Desk SHOULD ANY OF THE ABOVE DESCRIBED POLICIES BE CANCELLED BEFORE U.S. Nudear Regulatory Commission THE EXPIRATION DATE THEREOF, NOTICE WILL BE DELIVERED IN Washington, DC 20555-0001 ACCORDANCE WITH THE POLICY PROVISIONS.

AUTHORIZED REPRESENTATIVE Of Marsh USA Inc.

Manashi Mukherjee ..Jwt.o.._ _..... ~

I

© 1988-2014 ACORD CORPORATION. All rights reserved.

ACORD 25 (2014/01) The ACORD name and logo are registered marks of ACORD

AGENCYCUSTOMERID:_0_1_6_26_5~~~~~~~~~~~~~~~

LOC#: Chicago ADDITIONAL REMARKS SCHEDULE Page 2 of 3 AGENCY NAMED INSUREC MARSH USA INC. FirstEnergy Corporation Attn: Pete Nadel POLICY NUMBER pnadel@firslllnergycorp.com 76 Sou1h Main Street CARRIER I NAICCOOE Aklon, OH 44308 EFFECTIVE DATE:

ADDITIONAL REMARKS THIS ADDITIONAL REMARKS FORM IS A SCHEDULE TO ACORD FORM, FORM NUMBER: 25 FORM TITLE: Certificate of Liability Insurance CERTIFICATE OF NUCLEAR ENERGY LIABILITY INSURANCE This is to certify that there is in foroe as of the effective date of this Certificate a Nuctell' Eneigy Liablllly Insurance Policy issued by members of American Nuclear Insurers as lndleated (Companlest. to the lnsul1!d named herein, with respect to the Nuclear Facility at the Location shown and/orwtlh respect to the lnsured's operations described herein. tt such policy is cancelled or olherwise terminated prtor to the*end of December 31st of the calendll' year in which the Effective Dall! of this Certilicalll occurs, notice will be delivered in accordance wilh the poicy provisions. Otherwise this Certifrcate shall terminate as of the end of such December 31st. A Certificate win NOT be issued for any subsequent calendar year unless requested In writing.

Types of Insurance: NF * (Facility FormJ. NW* (Master Wor1<erCertiflcate), NS- (US Domestic Supplier's & Transporters1 FS * [Foraign Suppliers & Transporters}, N-[Secondary Financial Proteclion Certificate!

COVERAGE FOR NUCLEAR FACILITIES:

1. SITE #1- BEAVER VALLEY LOCATION OF NUCLEAR FACILITY: Beaver Valley Nuclear Power Plant in Shippingport Borough, Beaver County, Pennsylvania NAMED INSURED [LISTED ON POLICY): FirstEnergy Nuclear Generation, LLC, Ohio Edison Company, The Toledo Edison Company and Firs!Energy Nuclear Operating Company POLICY NUMBER POLICY EFFECTIVE: LIMIT OF LIABILITY:

NF-0226 08/01/1974 $375 Miiiion NW--0503 08/01N974 $375 Million" N-0058 08/01/1977 N-0110 05!28/1987

2. SITE#2

• DAVIS-BESSE LOCATION OF NUCLEAR FACILITY: Davis-Besse Nuclear Power PlanI on Lake Erle approx 20 miles ESE of Toledo In Ottawa County, Ohio NAMED INSURED [LISTED ON POLICY]: FirstEnergy Nuclear Generation, LlC and FirstEnergy Nuclear Operating Company POLICY NUMBER POLICY EFFECTIVE: LIMIT OF LIABILITY:

NF-0236 11/01/1975 $375 Million NW-0608 11/01/1975 $375Million" N-0061 08/01N977

3. SITE #3 *PERRY LOCATION OF NUCLEAR FACILITY: Peny Nuclear Power Plant on Lake Erie approx 35 miles NE of Cleveland, Ohio NAMED INSURED (LISTED ON POLICY]: FirstEnergy Nuclear Generation, LLC and FirstEnergy Nuclear Operating Company POLICY NUMBER: POLICY EFFECTIVE: LIMIT OF LIABILITY:

NF-0291 09/01/1984 $375 Million NW-0644 09/01/1984 $375 Million" N-0102 03/'!8/1986

4. SITE#4 *SAXTON LOCATION OF NUCLEAR FACILITY: Saxton Nuclear Experimental Corporation FacUity In LibertyTownshlp, Bedford County, PennsylVanla NAMED INSURED [LISTED ON POLICY]: Saxton Nuclear Experimental Corporation POLICY NUMBER POLICY EFFECTIVE: LIMIT OF LIABILITY:

NF-0107 06/01/1961 $1 Million NW-0532 OS/01/1961 $375 Million..

5. SITE#5

• THREE MILE ISLAND LOCATION OF NUCLEAR FACILITY: ~ Mlle Island Nuclear Power Plant In Londondeny Township, Dauphin County, Pennsylvania NAMED INSURED (LISTED ON POLICY): Metropofflan Edison Company, Jersey Central Power & Light Company, Pennsylvania Bectric Company and GPU Nuclear Inc.

ACORD 101 (2008/01) © 2008 ACORD CORPORATION. All rights reserved.

The ACORD name and logo are registered marks of ACORD

AGENCYCUSTOMER10:_0_1_6_26_5~~~~~~~~~~~~~~

LOC #: Chicago ADDITIONAL REMARKS SCHEDULE Page 3 of 3 AG EH CY NAMED INSURED MARSH USA INC. FirstEnergy Corporation Attn: Pete Nadel POLICY NUMBER pnadel@firstenerg)'COIP.com 76 South Main Street CARRIER I NAICCODE Akron, OH 44308 EFFECTIVE DATE:

ADDITIONAL REMARKS THIS ADDITIONAL REMARKS FORM IS A SCHEDULE TO ACORD FORM, FORM NUMBER: 25 FORM TITLE: Certificate of Liability Insurance NW-0599 1213111973 $375 Milrion*

THIS CERTIFICATE IS ISSUED AS A MAmR OF INFORMATION ONLY AND CONFERS NO RIGHTS UPON THE CERTIFICATE HOLDER.

The insurance alfollled by Iha pollcy(ies) is subjeCI IO the exclusions, conditions and other provisions of Ille pollcy(les). Neither this Certificate nor any contract or other document with respect IO which ii Is issued shaD amend, extend or alter the coverage afforded by the policy. The Limtt of Liabnily shown above may have been reduced by payment of claims or claims expenses.

COMMENTS/NOTES:

" Master Worker Certlflcate - This Omit Is sha-ed by all Certificates IO the Master Worker Policy of which each Certificate is a part and is subject to all of the provisions of such Policy and Certificale having reference thereto. Such limit may have been raduced by payment of claims or'clalms expenses.

- Secondary Financial Prolection Certificate - Flnllldal protecllon available under an industry retrospeclive raUng plan.

ACORD 101 (2008/01) © 2008 ACORD CORPORATION. All rights reserved.

The ACORD name and logo are registered marks of ACORD

~NE J L Nuclear Electric Insurance Limited Suite 1100 120 I Market Street Wilmington, DE 19801 U.S.A.

Michael W. Kolodner, CPCU Vice President - Member Insurance 302 573-2263 Direct 302 888-3000 Tel 302 888-3008 Fax May 26, 2016 302-588-5654 Cell mkolodner@ninlneil.com Eric Olvera Indemnity Specialist U.S. Nuclear Regulatory Commission Mail Stop 12D3 1 White Flint North Rockville, MD 20852 Re: FirstEnergy Nuclear Generation, LLC

Dear Mr. Olvera:

This letter confinns that Nuclear Electric Insurance Limited will write nuclear property insurance for FirstEnergy Nuclear Generation, LLC (FENGen) as the owner of I 00% of the Perry Nuclear Power Plant. The insurance will be effective on the date of the transfer of the licensed plant from Ohio Edison Company to FENGen.

Effective on the closing date of the asset transfer, the following Primary Property and Decontamination Liability Policies, and Decontamination Liability, Decommissioning Liability and Excess Property Insurance Policies, for the Perry Nuclear Power Plant will be amended to delete Ohio Edison Company as an Insured:

Perry-Pl6-067 and BX16-016 The combined limits on the above policies will satisfy the NRC required minimum property insurance limit of$1.06 biJJion in accordance with 10 CFR 50.54(w).

This commitment to write nuclear property insurance for FENGen remains valid through March 31, 2017. If the asset transfer takes place after that date, we will review the circumstances before re-stating our commitment.

Sincerely, Michael W. Kolodner, CPCU, ARM, ARe Vice President - Member Insurance C: Pete Nadel Mark Webster Chip Hardie Steve Nusspickel