L-HU-08-005, Application for Order and Conforming License Amendments to Transfer Operating Authority Under Facility Operating Licenses

Application for Order and Conforming License Amendments to Transfer Operating Authority Under Facility Operating Licenses

ML081090353
Person / Time
Site:	Monticello, Prairie Island
Issue date:	04/16/2008
From:	Koehl D, Wilks D Northern States Power Co, Nuclear Management Co, Xcel Energy
To:	Document Control Desk, Office of Nuclear Reactor Regulation
References
L-HU-08-005
Download: ML081090353 (59)

Text

SM NMC Committed to NuclearExcel

~ XcelEnergy-April 16, 2008 L-HU-08-005 10 CFR 50.80, 50.90 10 CFR 72.50, 72.56 US Nuclear Regulatory Commission Attn: Document Control Desk Washington, DC 20555 Prairie Island Nuclear Generating Plant, Monticello Nuclear Generating Plant Units 1 and 2 Docket 50-263 Dockets 50-282 and 50-306 Renewed License No. DPR-22 License Nos. DPR-42 and DPR-60 Prairie Island Independent Spent Fuel Storage Installation Docket 72-10 Materials License No. SNM-2506

References:

1. NRC to NMC letter "Monticello Nuclear Generating Plant and Prairie Island Nuclear Generating Plant, Unit 1 and 2 - Indemnity Agreements, dated April 3, 2008.

(TAC Nos. MD8060, MD8061 and MD8062)

APPLICATION FOR ORDER AND CONFORMING LICENSE AMENDMENTS TO TRANSFER OPERATING AUTHORITY UNDER FACILITY OPERATING LICENSES DPR-22, DPR-42, DPR-60, AND MATERIALS LICENSE SNM-2506 Pursuant to Section 184 of the Atomic Energy Act of 1954, 10CFR 50.80 and 10CFR 72.50, Nuclear Management Co., LLC. (NMC), licensed operator for the Monticello Nuclear Generating Plant (MNGP), Prairie Island Nuclear Generating Plant (PINGP) and the PINGP Independent Spent Fuel Storage Installation (ISFSI) and Northern States Power Company, a Minnesota corporation (NSPM) , an Xcel Energy Company, licensed owner of the aforementioned assets, hereby request an order consenting to the transfer of operating authority for those facilities from NMC to NSPM.

This application also requests, pursuant to 10CFR 50.90 and 10CFR 72.56, conforming amendments to Operating License Nos. DPR-22 for MNGP, DPR-42 and DPR-60 for PINGP, and to Materials License SNM-2506 for the PINGP ISFSI, to reflect NSPM as the licensed operator thereunder and to designate NSPM as the licensee authorized to use and operate the MNGP, PINGP and PINGP ISFSI in accordance with the terms and conditions of the licenses.

With the sale of other nuclear assets previously managed by NMC, the integration of NMC into the current NSPM organization combines the ownership and operating 700 First Street

• Hudson, Wisconsin 54016 Telephone: 715.377.3300

Document Control Desk Page 2 authority into a single organization thus providing a corporate arrangement that combines the continued commitment and qualifications for the safe, reliable and cost-effective operation of the facilities.

This request to transfer operating authority and the conforming license amendments involve no change in plant ownership. NSPM will remain as owner of the MNGP, PINGP and PINGP ISFSI. All costs associated with operating these facilities will continue to be borne by NSPM. Accordingly, there will be no change in the financial qualifications of the party (NSPM) with ultimate responsibility for the safe operation, maintenance and decommissioning of the facilities.

The parties expect to complete this transition on or before October 1, 2008. There are no state regulatory approvals required for the transition. Accordingly, NSPM and NMC request the NRC to review this application on a schedule that will permit the issuance of the NRC order consenting to the transfer and the approval of the conforming administrative license amendments as promptly as possible and in any event within 6 months of the submittal date, as discussed during a recent meeting held between NRC staff and NMC. Such consent should be immediately effective upon issuance and should permit the transfer and implementation of the conforming license amendments to occur up to one year after issuance or such later date as the NRC may permit. The parties will inform the NRC of any significant changes in the status or other developments that may affect the schedule.

In accordance with 10CFR 50.91, a copy of this application, with enclosures, is being provided to the designated Minnesota official.

This letter contains no new commitments or revisions to existing commitments.

I declare under penalty of perjury that the foregoing is true and correct.

Executed on: & ,q, /Z, *0&8 , \ .

Very truly yours, Dennis L. Koehl David M. Wilks Vice President and Chief Nuclear Officer Vice President and Officer Nuclear Management Company, LLC Northern States Power Company Officer-Northern States Power Company

Enclosures:

4 cc: Regional Administrator, Region Ill, USNRC Project Manager, Monticello Nuclear Generating Plant, USNRC Project Manager, Prairie Island Nuclear Generating Plant, USNRC Resident Inspector, Monticello Nuclear Generating Plant, USNRC Resident Inspector, Prairie Island Generating Plant, USNRC Director, Spent Fuel Project Office State of Minnesota Representative

UNITED STATES OF AMERICA NUCLEAR REGULATORY COMMISSION In the Matter of:

Monticello Nuclear Generating Plant ) Docket No. 50-263

)

Prairie Island Nuclear Generating Plant ) Docket Nos. 50-282 50-306

)

Prairie Island Independent Spent Fuel ) Docket No. 72-10 Storage Installation (ISFSI) )

APPLICATION FOR ORDER AND CONFORMING LICENSE AMENDMENTS TO TRANSFER OPERATING AUTHORITY UNDER FACILITY OPERATING LICENSES DPR-22, DPR-42, DPR-60, AND MATERIALS LICENSE SNM-2506 I. Introduction/Overview Pursuant to Section 184 of the Atomic Energy Act of 1954, as amended ("AEA"),

10CFR 50.80, and 10CFR 72.50, Nuclear Management Company, LLC ("NMC") and Northern States Power Company, a Minnesota corporation ("NSPM") hereby apply to the Nuclear Regulatory Commission ("NRC") for an order consenting to the transfer of the operating authority under Facility Operating Licenses DPR-22, DPR-42, DPR-60, and Materials License SNM-2506 (the "Licenses") for the Monticello Nuclear Generating Plant ("Monticello"), the Prairie Island Nuclear Generating Plant ("Prairie Island"), and the Prairie Island Independent Spent Fuel Storage Installation ("Prairie Island ISFSI")

respectively. This Application seeks NRC's consent to the transfer by NMC of its operating authority under the Licenses to NSPM. This Application also requests conforming amendments to the Licenses to delete references to NMC, and to authorize NSPM to operate Monticello, Prairie Island, and Prairie Island ISFSI, and to receive, possess, or use related licensed materials under the applicable conditions and authorizations included in the Licenses.

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This Application does not request any amendments to the Licenses other than those administrative amendments necessary to reflect NSPM as the operator, and to delete provisions dealing solely with NMC. This Application does not request approval of any physical changes in Monticello, Prairie Island, or Prairie Island ISFSI or any changes to the conduct of operations. After transfer of the operating authority under the Licenses, Monticello, Prairie Island, and Prairie Island ISFSI will continue to be operated and maintained in accordance with Monticello, Prairie Island, and Prairie Island ISFSI's current licensing bases.

Marked-up pages showing the requested changes to the Licenses are provided as Enclosures 2, 3 and 4 to this Application. Pursuant to 10CFR 2.1315, these proposed amendments to the Licenses involve "no significant hazards consideration" and "no genuine issue as to whether the health and safety of the public will be significantly affected," because the Application does nothing more than conform the Licenses to reflect the administrative transfer of operating authority.

In summary, the proposed transfer of operating authority under the Licenses at Monticello, Prairie Island, and Prairie Island ISFSI to NSPM will be consistent with the requirements set forth in the AEA, NRC regulations, and relevant NRC licenses and orders. No physical changes will be made to Monticello, Prairie Island, or Prairie Island iSFSI, as a result of the proposed transfer and there will be no changes in the operation of the facilities. The proposed transfer of operating authority under the Licenses and conforming administrative amendments will not involve any changes to the current Monticello, Prairie Island, or Prairie Island ISFSI design or licensing bases, and will not have any adverse impact on the public health and safety nor be inimical to the common defense and security. This Application therefore requests that the NRC consent to the 2

transfer in accordance with 10CFR 50.80 and 10CFR 72.50 and approve the conforming administrative amendments pursuant to 10CFR 50.92 and 10CFR 72.58.

I1. Statement of Purpose of the Transfer of Licenses and the Nature of the Transaction Making the Transfer of Licenses Desirable In 2000, the NRC authorized NSPM, the owner of Monticello, Prairie Island, and Prairie Island ISFSI, to transfer operating authority for those facilities to the newly formed NMC. 1 NMC also obtained operating authority over facilities owned by IES Utilities, Inc.,

Consumers Energy Co., Wisconsin Electric Power Company, and Wisconsin Public Service Corporation. Because of the subsequent sale of those facilities to other entities, NMC now only has operating authority over facilities that continue to be owned by NSPM: Monticello, Prairie Island, and Prairie Island ISFSI. Thus, the integration of the NMC into NSPM permitted by the change in operating authority of the Licenses is focused primarily on the transfer of the personnel, processes, and procedures to ensure and enhance the continued safe, reliable, and effective operation of each of the units.

NSPM continues to be committed to nuclear power as a key component of the company's balanced portfolio of generation assets.

Therefore, NMC and NSPM are requesting the transfer of the operating authority from NMC to NSPM under the Licenses.

Monticello is a single unit nuclear powered electric generating facility located on the Mississippi River in Monticello, Minnesota. Prairie Island is a dual unit nuclear powered electric generating facility located on the Mississippi River in Red Wing, Minnesota. The Prairie Island ISFSI is an independent spent fuel storage facility located on the PINGP site.

1 65 Fed. Reg. 31,935 (May 19, 2000).

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Upon completion of the transition, NSPM will resume full responsibility for the operation, maintenance and physical security of the facilities. NMC individuals who are employed at Monticello, Prairie Island, or whose work responsibilities are involved principally in the operation of Monticello, Prairie Island, or Prairie Island ISFSI assets will transition to become NSPM employees and thus maintaining the same structure, technical qualifications and processes currently used in the safe operation of the facilities. Upon transfer of the operating authority under the Licenses from NMC, NSPM will assume NMC labor agreements as they currently exist and honor those agreements for their term. During the term of the agreements, to the extent issues arise, NSPM will negotiate in the interim in accordance with the provisions of the labor agreements.

Upon expiration of the agreements, NSPM will assume general negotiations as it is standard industry practice.

No physical changes to the facilities are being proposed as part of this Application. The conforming amendments that are being requested are limited to those amendments necessary to reflect the new operator and its organization, and to delete references to NMC. NSPM will assume all regulatory commitments and will continue to comply with the current licensing bases of the facilities.

III. General Information Regarding Transferee The information required in an application for the transfer of operating authority under licenses pursuant to 10CFR 50.80 is set forth below. This information demonstrates that the requested transfer complies with the requirements of the AEA and applicable NRC regulations.

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A. Name and Address The name and registered office of the transferee currently is:

Northern States Power Company, a Minnesota corporation 414 Nicollet Mall Minneapolis, MN 55401-1927 B. Description of Business Northern States Power Company, a Minnesota corporation (NSPM), is a utility principally involved in the generation, purchase, transmission, distribution and sale of electricity. NSPM is a wholly owned utility operating company subsidiary of Xcel Energy, Inc. ("Xcel Energy"). Xcel Energy, a Minnesota corporation, is a major U.S. electric and natural gas company that operates in eight Western and Midwestern states and provides a comprehensive portfolio of energy-related products and services to approximately 3.3 million electricity customers and 1.8 million natural gas customers.

C. Organization and Management NSPM is a Minnesota corporation. Its principal place of business is Minneapolis, Minnesota.

The names and addresses of the directors and principal officers of NSPM, all of whom are U.S. citizens, are listed below:

NSPM DIRECTORS Richard C. Kelly Business address: 414 Nicollet Mall, Minneapolis, MN 55401 5

Paul J. Bonavia Business address: 414 Nicollet Mall, Minneapolis, MN 55401 Benjamin GS Fowke III Business address: 414 Nicollet Mall, Minneapolis, MN 55401 David M. Sparby Business address: 414 Nicollet Mall, Minneapolis, MN 55401 NSPM PRINCIPAL OFFICERS Richard C. Kelly Chairman Business address: 414 Nicollet Mall, Minneapolis, MN 55401 Cynthia L. Lesher President and Chief Executive Officer Business address: 414 Nicollet Mall, Minneapolis, MN 55401 David M. Sparby Executive Vice President, Acting President and Chief Executive Officer Business address: 414 Nicollet Mall, Minneapolis, MN 55401 Paul J. Bonavia Vice President Business address: 414 Nicollet Mall, Minneapolis, MN 55401 Raymond E. Gogel Vice President Business address: 550 1 5 th Street Denver, CO 80202 6

Michael C. Connelly Vice President and General Counsel Business address: 414 Nicollet Mall, Minneapolis, MN 55401 David M. Wilks Vice President Business address: 4653 Table Mountain Drive Golden, CO 80403 Dennis L. Koehl Vice President and Chief Nuclear Officer Business address: 250 Marquette Avenue, Minneapolis, MN 55401 Benjamin GS Fowke III Chief Financial Officer Business address: 414 Nicollet Mall, Minneapolis, MN 55401 Cathy J. Hart Vice President and Secretary Business address: 414 Nicollet Mall, Minneapolis, MN 55401 D. No Foreign Ownership or Control NSPM is not owned, controlled or dominated by an alien, a foreign corporation, or a foreign government.

E. No Agency In seeking to become the licensed operator of Monticello, Prairie Island, and Prairie Island ISFSI, NSPM is not acting as the agent or representative of another person. As the licensed operator of Monticello, Prairie Island, and Prairie Island ISFSI after the transfer of operating authority under the Licenses, NSPM will act for itself.

F. Relationship to Shareholders NSPM is a wholly owned utility operating company subsidiary of Xcel Energy.

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G. Technical Qualifications Substantially all of Monticello, Prairie Island, and Prairie Island ISFSI's staff and on-site operating organization, as well as off-site employees involved principally in Monticello, Prairie Island, and Prairie Island ISFSI operation, are expected to become NSPM employees after the transfer of the Licenses. Therefore, the technical qualifications of the organization operating Monticello, Prairie Island, and Prairie Island ISFSI will be essentially unaffected. The attached organization chart (Figure 1) depicts the lines of accountability and decision making for the NSPM nuclear organization to be implemented upon license transfer approval.

The on-site organization and plant staff, including senior managers, will remain essentially unchanged by the transfer. (Refer to Figure 1). Similarly, other than realignment of administrative and support services (such as accounting, business services, and information technology), the organizational structure of the on-site organization, including lines of authority and communication, is not expected to be changed by the transfer. Certain off-site support services currently being performed by NMC will be assumed by NSPM. If NSPM determines that any senior management changes will be made contemporaneously with the transfer, NSPM will ensure that the new individuals meet all existing qualification requirements and will inform the NRC prior to the transfer of operating authority under the Licenses.

H. Financial Qualifications NSPM is an "electric utility" within the meaning of 10CFR 50.2, and as such, under 10CFR 50.33(f), it is not required to provide evidence of financial qualifications as part of this Application. In addition, the requested transfer of operating authority and the conforming license amendments involve no change in facilities ownership. NSPM remains the owner of Monticello, Prairie Island, and Prairie Island ISFSI, and all costs 8

associated with operating these facilities will continue to be borne by NSPM to the same extent as they are now. Accordingly, there will be no change in the financial qualifications of the party ultimately responsible for the safe operation, maintenance, and decommissioning of Monticello, Prairie Island, and Prairie Island ISFSI.

Compliance with Section 1.G of the MNGP Operating License and Sections 1 .F of the PINGP Operating Licenses, (10CFR Part 140 requirements for Indemnity Agreements) was validated via NRC to NMC letter (Reference 1) dated April 3, 2008 which contains the NRC staffs evaluation that NSPM is in full compliance with 10CFR Part 140.

I. Decommissioning Funding Assurance NSPM is already responsible for decommissioning of Monticello, Prairie Island and the Prairie Island ISFSI. Thus, the transfer of operating authority under the Licenses will have no impact on decommissioning financing.

J. Antitrust Review The NRC has determined that antitrust reviews of post-operating license transfer applications are neither required nor authorized by the AEA, and therefore no antitrust information is required in connection with this Application. 2 2 Final Rule, Antitrust Review Authority: Clarification, 65 Fed. Reg. 44,649 (July 19, 2000); see also Kansas Gas and Electric Co.

(Wolf Creek Generating Station, Unit 1), CLI-99-19, 49 NRC 441 (June 1999).

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K. Other Licensing Considerations

1. Spent Fuel Contracts and Spent Fuel Management NSPM already has title to and financial responsibility for spent nuclear fuel at or associated with Monticello, Prairie Island, and Prairie Island ISFSI, including the rights and obligations under the Standard Contracts with the Department of Energy ("DOE").

2. Nuclear Insurance NSPM is already responsible for the nuclear property damage insurance and nuclear energy liability insurance of Monticello, Prairie Island, and Prairie Island ISFSI.

Thus, the transfer of operating authority under the Licenses has no impact on nuclear insurance.

3. Off-site Power Off-site power to Monticello and Prairie Island is currently provided over transmission and distribution facilities owned by NSPM. This arrangement will not change as a result of the proposed license transfer. NSPM will continue to operate its interconnection facilities in compliance with NRC's maintenance rule (10CFR 50.65) and other NRC requirements and licensee commitments.

4. Control of Exclusion and Controlled Areas NSPM owns or controls the property within the exclusion areas of Monticello and Prairie Island and the controlled area for the Prairie Island ISFSI. Upon transfer of operating authority under the Licenses, NSPM will assume the right to control activities and remove or exclude personnel in these areas.

5. Continuation of the Current Licensing Basis This Application does not request approval of or involve any physical changes in the facilities, in plant configuration, or to the conduct of operations. After the transfer of the operating authority under the Licenses, the facilities will continue to be operated and 10

maintained in accordance with their licensing basis, and NSPM will assume all regulatory commitments. There will be no change in the current licensing basis for Monticello, Prairie Island, and Prairie Island ISFSI associated with the transfer of the operating authority under the Licenses.

NSPM will assume responsibility of documents, correspondence, books, records, medical records, operating, safety and maintenance manuals, inspection reports, drawings, models, engineering designs, blueprints, as-built plans, specifications, procedures, studies, reports, quality assurance records, purchasing records and equipment repair, data, safety, maintenance or service records relating to the design, construction, licensing, regulation, operation or decommissioning of the facilities.

NSPM will also acquire rights to any documents owned by third parties and licensed to NMC which are used in or necessary to the licensing, operation, or decommissioning of the facility.

a. Quality Assurance Program Upon transfer, NSPM will adopt the current 10CFR Part 50, Appendix B Quality Assurance Topical Report (QATR) that is currently implemented by NMC. NSPM anticipates that no substantive changes will be made to the existing QA organization as a result of the transfer of operating authority under the Licenses to NSPM. NSPM anticipates that no changes will be made as a result of the transfer of operating authority under the Licenses that will result in a reduction in the commitments in the QA Program descriptions previously approved by the NRC.

Any future changes that may be made to the existing Monticello and Prairie Island QA Program developed and implemented by the NMC will be made in accordance with 10CFR 50.54(a). If NSPM identifies any changes to the QA Program that would result in a reduction in commitments, application to the NRC will be made; 11

any such proposed changes will be implemented in accordance with the provisions of 10CFR 50.54 (a) (3). Determinations as to whether any proposed change(s) would result in a reduction in commitments will be made in accordance with Monticello and Prairie Island's currently approved plans, programs and procedures in compliance with the requirements of 10CFR 50.54(a).

b. Emergency Preparedness Upon transfer, NSPM will assume the authority and responsibility for functions necessary to fulfill the emergency planning and preparedness requirements specified in 10CFR 50.47(b) and 10CFR Part 50, Appendix E, and will assume the existing Monticello, Prairie Island, and Prairie Island ISFSI emergency plans. NSPM anticipates that no changes to the emergency plans will be made that will result in a decrease in the effectiveness of the plans, and that the plans will continue to meet the standards of 10CFR 50.47(b) and the requirements of 10CFR Part 50, Appendix E. The transfer of the operating authority under the Licenses will not adversely affect the effectiveness of the emergency planning organization or compliance with emergency preparedness requirements. The current Emergency Response Organization (ERO) will continue to perform the required duties under the respective Emergency Plans and implementing procedures.

Any changes made to the existing Monticello, Prairie Island, and Prairie Island ISFSI emergency plans will be made in accordance with 10CFR 50.54(q). Any specific emergency plan changes will be submitted to the NRC within thirty (30) days after the changesare made, pursuant to 10CFR 50.54(q) and 10CFR Part 50, Appendix E, Section IV. If NSPM were to identify any proposed changes that would decrease the effectiveness of the approved emergency plans, application to the NRC will be made and such proposed changes will not be implemented until approved by the NRC.

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Determinations as to whether any proposed change(s) would result in a decrease in effectiveness will be made in accordance with Monticello, Prairie Island, and Prairie Island ISFSI currently approved plans, programs, and procedures in compliance with the requirements of 10CFR 50.54 (q).

In sum, the transfer of operating authority under the Licenses will not adversely affect compliance with emergency preparedness requirements.

c. Security Plans Upon transfer of operating authority under the Licenses, NSPM will assume the authority and responsibility for the functions necessary to fulfill the security planning requirements specified in 10CFR Part 73, and will assume the existing NRC-approved physical security, guard training and qualification, and safeguards contingency plans, as well as all commitments in response to the NRC's Security Orders pertaining to Monticello, Prairie Island, and Prairie Island ISFSI. NSPM anticipates that no changes will be made as a result of the transfer of operating authority under the Licenses that will result in a decrease in the effectiveness of the plans, and that the plans will continue to meet existing regulatory requirements.

Any changes made to the plans will be made in accordance with 10CFR 50.54(p). Any specific security plan changes will be submitted to the NRC within two months after the changes are made, pursuant to 10CFR 50.5 4 (p)(2). If NSPM identifies any proposed change that would decrease the effectiveness of the approved security plans, application to the NRC will be made, and such proposed changes will not be implemented until approved by the NRC. Determination as to whether any proposed change(s) would result in a decrease in effectiveness will be made in accordance with Monticello, Prairie Island, and Prairie Island ISFSI currently approved security plans, programs, and procedures in compliance with the requirements of 10CFR 50.54(p).

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d. Updated Safety Analysis Report The proposed transfer of operating authority under the Licenses and conforming administrative License amendments will not change or invalidate information presently appearing in the Updated Safety Analysis Reports ("USAR") for Monticello and Prairie Island or the Safety Analysis Report for the Prairie Island ISFSI, with the exception of the information changed as a result of this Application. Changes necessary to accommodate the proposed transfer and conforming administrative license amendments will be incorporated into the USAR in accordance with 10CFR 50.71(e) following NRC approval of the request for consent to transfer operating authority under the Licenses. Changes necessary to accommodate the proposed transfer and conforming administrative license amendments will be incorporated into the Prairie Island ISFSI Safety Analysis Report in accordance with 10CFR 72.70(b) following NRC approval of the request for consent to transfer operating authority under the Licenses.

L. Restricted Data and Classified Nuclear Security Information This Application does not contain any Restricted Data or other classified defense information, and it is not expected that any such information will be required by the licensed activities at Monticello, Prairie Island, and Prairie Island ISFSI. In the event that licensed activities do involve Restricted Data in the future, NSPM agrees to appropriately safeguard such information and it will not permit any individual to have access to Restricted Data or National Security Information until the Office of Personnel Management investigates and reports to the NRC on the character, associations and loyalty of such individual, and the NRC determines that permitting such person to have access to Restricted Data will not endanger the common defense and security of the United States.

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M. Environmental Considerations The proposed transfer of operating authority under the Licenses will not result in any change in the types, or any increase in the amounts, of any effluents that may be released off-site, and will not cause any increase in individual or cumulative occupational radiation exposure. Further, as specified in 10CFR 51.22(c) (21), the NRC has determined that license transfers are categorically exempted from further environmental review. Accordingly, the transfer of operating authority under the Licenses will involve no significant environmental impact.

IV. Schedule The parties are seeking to complete the proposed transition promptly, consistent with receipt of all required regulatory approvals. NSPM and NMC anticipate completion of the transition into NSPM on or before October 1, 2008. Accordingly, the parties request that the NRC complete its review and issue the transfer consent and conforming license amendments expeditiously, with a target of 6 months from the submittal date. This would be consistent with the NRC's stated objective discussed during our recent meeting at your offices.

The parties request and expect that, consistent with past NRC practice, the NRC's consent will be effective immediately upon issuance and will permit the transfer and implementation of the conforming Licenses amendments at any time within twelve (12) months following the date of issuance by the NRC. Consistent also with past NRC practice, NSPM and NMC would provide notification to the NRC of the actual date and time of transfer of operating authority as approved by the consent order.

No approval or other action is required by any state regulatory agency, prior to the transition. The parties do not expect any delays beyond the staff's approval of this 15

amendment and as such, request the issuance of the respective conforming amendments to the Licenses to be issued concurrent with the order approving the transfer of operating authority.

V. Conclusions For the foregoing reasons, the proposed transfer of operating authority under the Licenses will not: (1) have any adverse impact on the operation of Monticello, Prairie Island, or Prairie Island ISFSI; (2) adversely affect the managerial, technical or financial, qualifications of the licensed operator of the facilities; (3) impair any licensee's financial qualifications; (4) result in foreign ownership, control or domination over any NRC licensee; or (5) require any additional NRC reviews. In conclusion, the proposed transfer will not be inimical to the common defense and security or result in any undue risk to public health and safety, and will be consistent with the requirements of the AEA and the NRC regulations.

Accordingly, and based on the foregoing information, the parties respectfully request that the NRC issue (1) an Order approving the transfer of NMC's operating authority to NSPM, and (2) the associated conforming administrative amendments to Facility Operating Licenses DPR-22, DPR-42, DPR-60, and Materials License SNM-2506.

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FIGURE 1 NSPM SIMPLIFIED ORGANIZATION EFFECTIVE UPON TRANSFER OF OPERATING AUTHORITY Richard C. Kelly Chairman, President and CEO Xcel Energy and Chairman NSPM David M. Wilks President Energy Supply Business Unit and Vice President - NSPM I

UNITED STATES OF AMERICA NUCLEAR REGULATORY COMMISSION In the Matter of:

Monticello Nuclear Generating Plant ) Docket No. 50-263

)

Prairie Island Nuclear Generating Plant ) Docket No. 50-282 50-306

)

Prairie Island Independent Spent Fuel ) Docket No. 72-10 Storage Installation (ISFSI) )

AFFIRMATION I, Dennis L. Koehl, being duly sworn, hereby depose and state that I am the Vice President and Chief Nuclear Officer, for Nuclear Management Company, LLC (NMC);

that I am duly authorized to file with the Nuclear Regulatory Commission the attached Application For Order And Conforming License Amendments To Transfer Operating Authority Under Facility Operating Licenses DPR-22, DPR-42, DPR-60, and Materials License SNM-2506; that I am familiar with the content thereof; and that the matters set forth therein pertaining to NMC and the Monticello Nuclear Generating Plant, the Prairie Island Nuclear Generating Plant, and the Prairie Island Independent Spent Fuel Storage Installation, including the information in Enclosures 1 thru 4 provided, are true and correct to the best of my knowledge and belief.

Dennis L. Koehl Vice President and Chief Nuclear Officer STATE OF MINNESOTA COUNTY OF Hennepin )

Subscribed and sworn to beforeime, a N'tary Public in the State of Minnesota, this _tay of April, 2008.

Notary Public in and for the State of Minnesota NOTARY PUBLIC

• MNEOAM omsine MY COMMISSION EXPIRES My Commission ex (3 JANUARY 31,2010

UNITED STATES OF AMERICA NUCLEAR REGULATORY COMMISSION In the Matter of:

Monticello Nuclear Generating Plant ) Docket No. 50-263

)

Prairie Island Nuclear Generating Plant ) Docket No. 50-282

) 50-306

)

Prairie Island Independent Spent Fuel ) Docket No. 72-10 Storage Installation (ISFSI) )

AFFIRMATION I, David M. Wilks, being duly sworn, hereby depose and state that I am Vice President of Northern States Power Company; that I am duly authorized to file with the Nuclear Regulatory Commission the attached Application For Order And Conforming License Amendments To Transfer Operating Authority Under Facility Operating Licenses DPR-22, DPR-42, DPR-60, and Materials License SNM-2506; that I am familiar with the content thereof; and that the matters set forth therein pertaining to NSPM and the Monticello Nuclear Generating Plant, the Prairie Island Nuclear Generating Plant, and the Prairie Island Independent Spent Fuel Storage Installation, including the information in Enclosures 1 thru 4 provided, are true and correct to the best of my knowledge and belief.

David M. Wilks Vice President STATE OF MINNESOTA )

COUNTY OF HENNEPIN )

Subscribed and sworn to before me-, a No a ublic' the State of Minnesota, this 4qI~ay of April, 2008.

Notary Public in and for the State of Minnesota CHRISTINE SSINN NOTARY PUBLIC - MINNESM yComsso My COMMISSIONEXPI.S My Commission expi JANUARY31, 2010

LIST OF ENCLOSURES . Proposed Changes to Facility Operating Licenses and Materials License Associated with the Proposed Transfer of the Operating Authority of Monticello Nuclear Generating Plant, Prairie Island Nuclear Generating Plant, and Prairie Island Independent Spent Fuel Storage Installation from Nuclear Management Company, LLC to Northern States Power Company (NSPM). . Marked-up Operating License and Technical Specifications Pages for Monticello Nuclear Generating Plant. . Marked-up Operating License and Technical Specifications Pages for Prairie Island Nuclear Generating Plant. . Marked-up Special Nuclear Materials License and Technical Specifications for Prairie Island Independent Spent Fuel Storage Installation.

ENCLOSURE 1 Proposed Changes to Facility Operating Licenses and Materials License Associated with the Proposed Transfer of the Operating Authority of Monticello Nuclear Generating Plant, Prairie Island Nuclear Generating Plant, and Prairie Island Independent Spent Fuel Storage Installation from Nuclear Management Company, LLC to Northern States Power Company

1. Reason for the Changes.

With the sale of other nuclear assets previously managed by NMC, the integration of NMC into the current NSPM organization combines the ownership and operating authority into a single organization thus providing a corporate arrangement that combines the continued commitment and qualifications for the safe, reliable and cost-effective operation of the those facilities thus necessitating the submittal of conforming changes to the Facility Operating Licenses (including appendices) for the Monticello Nuclear Generating Plant ("Monticello"), the Prairie Island Nuclear Generating Plant

("Prairie Island"), and Materials License for the Prairie Island Independent Spent Fuel Storage Installation ("Prairie Island ISFSI"). The proposed changes delete references to NMC as the operator of Monticello, Prairie Island, and the Prairie Island ISFSI and replace them with references to NSPM. Other minor administrative changes are also be implemented as shown below to facilitate the transfer of the operating authority under Licenses.

2. Basis for the Changes.

After the transfer of the Licenses, NMC will retain no responsibility for the regulatory obligations contained in Licenses DPR-22, DPR-42, DPR-60 and SNM-2506 for Monticello, Prairie Island, and Prairie Island ISFSI. Accordingly, the entity to which that responsibility is being transferred, NSPM, must be identified in the Facility Operating Licenses and Materials License.

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3. Safety Assessment.

The proposed changes to the Facility Operating Licenses for Monticello, Prairie Island, and Prairie Island ISFSI identify NSPM as the operator of the facilities and make minor changes that support the transfer of the Licenses. No physical modifications are being made to plant systems or components nor are any significant changes in the operation of the facilities being made.

No Significant Hazards Consideration Determination The proposed changes to the licenses are purely involved with the transfer of the licenses. The proposed changes delete the references in the licenses to the Nuclear Management Company (NMC) and maintain Northern States Power Co.,

a Minnesota corporation (NSPM), as the owner and operating authority.

In its regulations, at 10CFR 2.1315, The Nuclear Regulatory Commission (NRC) has made a generic determination regarding No Significant Hazards Consideration (NSHC) determinations required by 10CFR 50.92. The determination is applicable to license amendments involving license transfers. In brief, the rule states that the NRC has determined that any amendment to the license of a utilization facility which does no more than conform the license to reflect the transfer action, does not involve a NSHC.

The proposed changes contained in this license amendment application are intended solely to conform the Monticello, Prairie Island and Prairie Island ISFSI facility Operating Licenses and associated Technical Specifications to reflect the change in operating authority of the license transfers and thus meet the criteria specified by 10CFR 2.1315.

2

Therefore, the proposed changes are administrative in nature and will not adversely affect nuclear safety or safe plant operation.

4. Description of the Proposed Chanqes.

The proposed changes to the Facility Operating Licenses for Monticello and Prairie Island, and the and Materials License for the Prairie Island ISFSI include the following:

(1) the deletion of references to NMC as operator of Monticello, Prairie Island, and Prairie Island ISFSI, and (2) the authorization of NSPM to operate Monticello, Prairie Island, and Prairie Island ISFSI under essentially the same conditions and authorization included in the existing Licenses.

3

ENCLOSURE 2 Marked-up Renewed Operating License No. DPR-22 And Technical Specifications Pages Monticello Nuclear Generating Plant Docket No. 50-263

FACILITY OPERATING LICENSE DPR-22 FOR MONTICELLO NUCLEAR GENERATING PLANT - UNIT 1 MONTICELLO, MINNESOTA NORTHERN STATES POWER COMPANY NUlLEAR MAINAGEMENT COMPANYI LLC, DOCKET NO. 50-263

NORTHERN STATES POWER COMPANY NU*LEAR MIA.NAGIEMIEINT COMPANY, LLC DOCKET NO. 50-263 MONTICELLO NUCLEAR GENERATING PLANT, UNIT NO. 1 RENEWED FACILITY OPERATING LICENSE License No. DPR-22 The Nuclear Regulatory Commission (NRC or the Commission), having previously made the findings set forth in License No. DPR-22 issued on January 9, 1981, has now found that:

A. The application to renew operating License No. DPR-22 filed by Nuclear Management Company, LLC* (NMC) complies with the standards and requirements of the Atomic Energy Act of 1954, as amended (the Act), and the Commission's rules and regulations set forth in 10 CFR Chapter I,and all required notifications to other agencies or bodies have been duly made; A-.B. Construction of the Monticello Nuclear Generating Plant, Unit No. 1 (the facility),

has been completed in conformity with Construction Permit No. CPPR-31 and the application, the provisions of the Act, and the regulations of the Commission; 9*-.C. Actions have been identified and have been or will be taken with respect to (1) managing the effects of aging during the period of extended operation on the functionality of structures and components that have been identified to require review under 10 CFR 54.21(a)(1), and (2) time-limited aging analyses that have been identified to require review under 10 CFR 54.21 (c), such that there is reasonable assurance that the activities authorized by this renewed operating license will continue to be conducted in accordance with the current licensing basis, as defined in 10 CFR 54.3, for the facility, and that any changes made to the facility's current licensing basis in order to comply with 10 CFR 54.29(a) are in accordance with the Act and the Commission's regulations; D. The facility will operate in conformity with the application, the provisions of the Act, and regulations of the Commission; E. There is reasonable assurance: (i) that the activities authorized by this renewed operating license can be conducted without endangering the health and safety of the public, and (ii)that such activities will be conducted in compliance with the Commission's regulations set forth in 10 CFR Chapter I;

• Nucicar Management Company, [L[C, herFein-afterF re-ferred to as NMG, succeeds Northern States Power Company as operator of the Monticello Nuciear Generating Plant. Consequently, NMC is authorized to ;act as agent for Neoher States Power Company and has GXclUsiVe FeSpOnsibilitt ' and control oVer physical

.. nstruction, operation, and m .Aintnancc of the faGility. NMC is maintained as historical information.

Corrcted by letteFr dated 2/2/01 7

F. Northern States Power Company (NSPM) NMC-is technically qualified and No-thern States Power Comnpany is financially qualified to engage in the activities authorized by this renewed operating license in accordance with the Commission's regulations set forth in 10 CFR Chapter I; A-.G. NIorthern States Power Company and NMC haveNSPM has satisfied the applicable provisions of 10 CFR Part 140, "Financial Protection Requirements and Indemnity Agreements," of the Commission's regulations; H. The issuance of this renewed operating license will not be inimical to the common defense and security or to the health and safety of the public;

1. After weighing the environmental, economic, technical, and other benefits of the facility against environmental and other costs and considering available alternatives, the issuance of this renewed Facility Operating License No.

DPR-22, subject to the conditions for protection of the environment set forth herein, is in accordance with 10 CFR Part 51 (formerly Appendix D to Part 50), of the Commission's regulations and all applicable requirements have been satisfied; and J. The receipt, possession, and use of source, byproduct, and special nuclear material as authorized by this renewed operating license will be in accordance with the Commission's regulations in 10 CFR Parts 30, 40, and 70.

2. The Facility Operating License No. DPR-22 dated January 9, 1981, is superseded by Renewed Facility Operating License No. DPR-22, hereby issued to Northern States Power Company1 (NSPM)and-NMC-to read as follows:

A. This renewed operating license applies to the Monticello Nuclear Generating Plant, Unit No. 1, a single cycle, forced circulation, boiling water nuclear reactor and electric generating equipment (the facility). The facility is located in Wright County on the Northern States' site in Wright and Sherburne Counties, Minnesota, and is described in the "Final Safety Analysis Report," as supplemented and amended (Amendment Nos. 9 through 28) and in its Environmental Report, as supplemented and amended.

B. Subject to the conditions and requirements incorporated herein, the Commission hereby licenses:

1. Pursuant to Section 104(b) of the Act, and 10 CFR Part 50, "Licensing of Production and Utilization Facilities," Northern States Power Company_

(NSPM) to possess, and NIMG to use, and operate the facility as a utilization facility at the designated location in Wright County, Minnesota, in accordance with the procedures and limitation set forth in this license; Northern States Power Company was incorporated in Minnesota as a wholly owned subsidiary of Xcel Energy, Inc.

effective August 18, 2000. This license, as amended, was amended effective this date to reflect the Commission's consent per 10 CFR Part 50, Section 50.80 to the license transfer approved by Order dated May 12, 2000.

Ren&ewd License No. DPR-22 Corrected by letter dated 2i23/07

2. Pursuant to the Act and 10 CFR Part 70, NMG-NSPM to receive, possess, and use at any time special nuclear material as reactor fuel, in accordance with the limitations for storage and amounts required for reactor operations, as described in the Final Safety Analysis Report, as supplemented and amended, and the licensees filings dated August 16, 1974 (those portions dealing with handling of reactor fuel) and August 17, 1977 (those portions dealing with fuel assembly storage capacity);

3. Pursuant to the Act and 10 CFR Parts 30, 40 and 70, NMG-NSPM to receive, possess, and use at any time any byproduct, source and special nuclear material as sealed neutron sources for reactor startup, sealed sources for reactor instrumentation and radiation monitoring equipment calibration, and as fission detectors in amounts as required;

4. Pursuant to the Act and 10 CFR Parts 30, 40 and 70, NMG-NSPM to receive, possess, and use in amounts as required any byproduct, source or special nuclear material without restriction to chemical or physical form, for sample analysis or instrument calibration or associated with radioactive apparatus or components; and 3.5. Pursuant to the Act and 10 CFR Parts 30 and 70, NMVGNSPM to possess, but not separate, such byproduct and special nuclear material as may be produced by operation of the facility.

C. This renewed operating license shall be deemed to contain and is subject to the conditions specified in the Commission's regulations in 10 CFR Chapter I and is subject to all applicable provisions of the Act and to the rules, regulations, and orders of the Commission, now or hereafter in effect; and is subject to the additional conditions specified or incorporated below:

1. Maximum Power Level NMG NSPM is authorized to operate the facility at steady state reactor core power levels not in excess of 1775 megawatts (thermal).

4-.2. Technical Specifications The Technical Specifications contained in Appendix A, as revised through Amendment No.-454, are hereby incorporated in the license. NMC-NSPM shall operate the facility in accordance with the Technical Specifications.

3. Physical Protection NIM--NSPM shall implement and maintain in effect all provisions of the Commission-approved physical security, guard training and qualification, and safeguards contingency plans including amendments made pursuant to provisions of the Miscellaneous Amendments and Renewed License No. DPR-22 Amendment No. 1 th'-1 !15

Search Requirements revisions to 10 CFR 73.55 (51 FR 27817 and 27822) and to the authority of 10 CFR 50.90 and 10 CFR 50.54(p)(2).

The combined set of plans, which contain Safeguards Information protected under 10 CFR 73.21, are entitled: "Monticello Nuclear Generating Plant Physical Security, Training and Qualification, and Safeguards Contingency Plan," with revisions submitted through May 12, 2006.

4. Fire Protection NMG-NSPM shall implement and maintain in effect all provisions of the approved fire protection program as described in the Updated Safety Analysis Report for the facility and as approved in the SER dated August 29, 1979, and supplements dated February 12, 1981 and October 2, 1985, subject to the following provision:

NMC-NSPM may make changes to the approved fire protection program without prior approval of the Commission only if those changes would not adversely affect the ability to achieve and maintain safe shutdown in the event of a fire.

5. Emergency Preparedness Plan NMG-NSPM shall follow and maintain in effect emergency plans which meet the standards of 10 CFR 50.47(b) and the requirements in 10 CFR 50, Appendix E, including amendments and changes made pursuant to the authority of 10 CFR 50.54(q). The licensee shall meet the requirements of 10 CFR 50.54(s), 50.54(t), and 50.54(u).

6. TMI Action Plan No.rthe.rp RSt[ttes Power ....panyNJSPM has satisfactorily met all TMI-2 Lessons Learned Category "A" requirements applicable to the facility.

Northern States Power Company shall make a timely submittal in response to the letter dated October 31, 1980 regarding post-TMI requirements from Darrell G. Eisenhut, Director, Division of Licensing, Office of Nuclear Reactor Regulation to All Licensees of Operating Plants and Applicants for Operating Licenses and Holders of Construction Permits (NUREG0737).

3.7. Repairs to the Recirculation System Piping The repairs to the recirculation system piping are approved and the unit is hereby authorized to return to power operation, subject to the following condition:

Prior to the startup of Cycle 11, No"thern States Power

... FnpaRyNSPM shall submit by August 1, 1983 for the Commission's review and Renewed License No. DPR-22

approval, a program for inspection and/or modification of the recirculation system piping.

8. Additional Conditions The Additional Conditions contained in Appendix C, as revised through Amendment No.44-0, are hereby incorporated into this license. NMGC NSPM shall operate the facility in accordance with the Additional Conditions.

9. Implementation of New and Revised Surveillance Requirements For surveillance requirements that are new in Amendment No. 146, the first performance is due at the end of the first surveillance interval, which begins on the date of implementation of this amendment.

For surveillance requirements that existed prior to Amendment No. 146, whose intervals of performance are being reduced, the first reduced surveillance interval begins upon completion of the first surveillance performed after implementation of this amendment.

For surveillance requirements that existed prior to amendment No. 146 that have modified acceptance criteria, the first performance is due at the end of the first surveillance interval that began on the date the surveillance was last performed prior to the implementation of this amendment.

For surveillance requirements that existed prior to Amendment No. 146, whose intervals of performance are being extended, the first extended surveillance interval begins upon completion of the last surveillance performed prior to implementation of this amendment.

10. Removed Details and Requirements Relocated to Other Controlled Documents License Amendment No. 146 authorizes the relocation of certain technical specifications to other licensee-controlled documents.

Implementation of this amendment shall include relocation of these requirements to the specified documents, as described in (1) Section 5.0 of the NRC staffs Safety Evaluation, and (2)Table LA, Removed Detail Changes, and Table R, Relocated Specifications, attached to the NRC staffs Safety Evaluation.

D. 14M.CNSPM shall immediately notify the NRC of any accident at this facility which could result in an unplanned release of quantities of fission products in excess of allowable limits for normal operation established by the Commission.

Renewed License No. DPR-22

E. Northern States Power .... panyNSPM shall have and maintain financial protection of such type and in such amounts as the Commission shall require in accordance with Section 170 of the Atomic Energy Act of 1954, as amended, to cover public liability claims.

F. NMG-NSPM shall observe such standards and requirements for the protection of the environment as are validly imposed pursuant to authority established under Federal and State law and as determined by the Commission to be applicable to the facility covered by this renewed facility operating license.

G. The Updated Safety Analysis Report supplement, as revised, submitted pursuant to 10 CFR 54.21(d), shall be included in the next scheduled update to the Updated Safety Analysis Report required by 10 CFR 50.71 (e)(4) following the issuance of this renewed operating license. Until that update is complete, NM-NSPM may make changes to the programs and activities described in the supplement without prior Commission approval, provided that NMGCNSPM evaluates such changes pursuant to the criteria set forth in 10 CFR 50.59 and otherwise complies with the requirements in that section.

H. The Updated Safety Analysis Report supplement, as revised, describes certain future activities to be completed prior to the period of extended operation. NMG NSPM shall complete these activities no later than September 8, 2010, and shall notify the NRC in writing when implementation of these activities is complete and can be verified by NRC inspection.

All capsules in the reactor vessel that are removed and tested must meet the test procedures and reporting requirements of the most recent NRC-approved version of the Boiling Water Reactor Vessels and Internals Project (BWRVIP)

Integrated Surveillance Program (ISP) appropriate for the configuration of the specimens in the capsule. All capsules placed in storage must be maintained for future insertion. Any changes to storage requirements must be approved by the NRC, as required by 10 CFR Part 50, Appendix H.

J. This renewed operating license is effective as of the date of issuance and shall expire at midnight, September 8, 2030.

FOR THE NUCLEAR REGULATORY COMMISSION J. E. Dyer, Director Office of Nuclear Reactor Regulation Attachments: 1. Appendix A - Technical Specifications

2. Appendix B - (Deleted per Amendment 15, 12/17/82)

3. Appendix C - Additional Conditions Date of Issuance: November 08, 2006 Renewed License No. DPR-22

APPENDIX A TO FACILITY OPERATING LICENSE DPR-22 TECHNICAL SPECIFICATIONS FOR MONTICELLO NUCLEAR GENERATING PLANT UNIT 1 MONTICELLO, MINNESOTA NORTHERN STATES POWER COMPANY NUCLEAR MANAGEMENT GCOMPANrY, LLC DOCKET NO. 50-263 Renewed License No. DPR-22

'ENCLOSURE 3 Marked-up Operating License Nos. DPR-42 and DPR-60 And Technical Specifications Pages Prairie Island Nuclear Generating Plant Docket Nos. 50-282 and 50-306

NORTHERN STATES POWER COMPANY NUCLEAR MANAGEMENT COMPANY, LLC DOCKET NO. 50-282 PRAIRIE ISLAND NUCLEAR GENERATING PLANT, UNIT 1 FACILITY OPERATING LICENSE License No. DPR-42 Amendment No. 4-5

1. The Atomic Energy Commission (the Commission) having found that:

A. The application for license filed by Northern States Power Company* (NSPM) complies with the standards and requirements of the Atomic Energy Act of 1954, as amended (the Act), and the Commission's rules and regulations set forth in 10 CFR Chapter I and that all required notifications to other agencies or bodies have been duly made; B. Construction of the Prairie Island Nuclear Generating Plant, Unit 1 (the facility), has been substantially completed in conformity with Provisional Construction Permit No. CPPR-45, as amended, the application, as amended, the provisions of the Act, and the rules and regulations of the Commission; C. The facility will operate in conformity with the application, as amended, the provisions of the Act, and the rules and regulations of the Commission; D. There is reasonable assurance: (i) that the activities authorized by this operating license can be conducted without endangering the health and safety of the public, and (ii) that such activities will be conducted in compliance with the rules and regulations of the Commission; E. NMC4C,-i.- technRially qualified and Northern States Power GCopn*yr NSPM is technically and is-financially qualified to engage in the activities authorized by this operating license in accordance with the rules and regulations of the Commission; F. Northern States Power.Company, NSPM and NMC have has satisfied the applicable provisions of 10 CFR Part 140, "Financial Protection Requirements and Indemnity Agreements", of the Commission's regulations; Nuclear Management Company, LLC, hereinaftcr rcferred to as NMC , SUcceeds Northern States Power Company as opercatorn of the Prairie island Nucle-ar G--.eneraing Plaint, Unt1 ontsequently, N is authorized to act as agent for Northern States Power Company and fC hsexclusive responsibility and conrol1 over physical construction, operation, and mnaintenance of the facilit

G. The issuance of this amended license will not be inimical to the common defense and security or to the health and safety of the public; H. After weighing the environmental, economic, technical, and other benefits of the facility against environmental costs and considering available alternatives, the issuance of Amendment No. 2 to Facility Operating License No. DPR-42 is in accordance with 10 CFR Part 50, Appendix D, of the Commission's regulations and all applicable requirements of said Appendix D have been satisfied; and

1. The receipt, possession, and use of source, byproduct and special nuclear material as authorized by this license will be in accordance with the Commission's regulations in 10 CFR Parts 30 and 70, including 10 CFR Section 30.33, 70.23 and 70.31.

2. Pursuant to an Initial decision of the Atomic Safety and Licensing Board (ALB) dated April 2, 1974, Facility Operating License DPR-42 (issued to Northern States Power Company1 on August 9, 1973, and amended on December 14, 1973) is hereby amended in its entirety to read as follows:

A. This amended license applies to the Prairie Island Nuclear Generating Plant, Unit 1, a pressurized water nuclear reactor and associated equipment (the facility), owned by the Nerthern States Po-er C ,mpanyNSPM.

The facility is located in Goodhue County, Minnesota, and is described in the "Final Safety Analysis Report" as supplemented and amended (Amendments 1 through 36) and the Environmental Report as supplemented and amended (Supplements 1 and 2).

B. Subject to the conditions and requirements incorporated herein, the Commission hereby licenses:

(1) Pursuant to Section 104b of the Act and 10 CFR Part 50, "Licensing of Production and Utilization Facilities, Northern States Power ,.mpanyNSPM to possess, a~4 te-use, and operate the facility at the designated location in Goodhue County, Minnesota, in accordance with the procedures and limitations set forth in this license; (2) Pursuant to the Act and 10 CFR Part 70, NMGNSPM to receive, possess and use at any time special nuclear material as reactor fuel, in accordance with the limitations for storage and amounts required for reactor operation, as described in the Final Safety Analysis Report, as supplemented and amended as of May 11, 1976.

(3) Pursuant to the Act and 10 CFR Parts 30, 40 and 70, NIMC-NSPM to receive, possess, and use at any time any byproduct, source and special nuclear material as sealed neutron sources for reactor startup, sealed sources for reactor instrumentation and radiation monitoring equipment calibration, and as fission detectors in amounts as required; 1Northern States Power Company was incorporated in Minnesota as a wholly owned subsidiary of Xcel Energy, Inc. effective August 18, 2000. This license, as amended, was amended effective this date to reflect the Commission's consent per 10 CFR Part 50, Section 50.80 to the license transfer approved by Order dated May 12, 2000.

Unit I Amendment No. 4Z414

(4) Pursuant to the Act and 10 CFR Parts 30, 40, and 70, NMGVI-NSPM to receive, possess and use in amounts as required any byproduct, source or special nuclear material without restriction to chemical or physical form, for sample analysis or instrument and equipment calibration or associated with radioactive apparatus or components; (5) Pursuant to the Act and 10 CFR Parts 30 and 70, NIMG-NSPM to possess but not separate, such byproduct and special nuclear materials as may be produced by the operation of the facility; (6) Pursuant to the Act and 10 CFR Parts 30 and 70, NMG-NSPM to transfer byproduct materials from other job sites owned by NSPM Northern Sattes Power C"..a.y-for the purpose of volume reduction and decontamination.

C. This amended license shall be deemed to contain and is subject to the conditions specified in the following Commission regulations in 10 CFR Chapter I: Part 20, Section 30.34 of Part 30, Sections 50.54 and 50.59 of Part 50, and Section 70.32 of Part 70; is subject to all applicable provisions of the Act and to the rules, regulations, and orders of the Commission now or hereafter in effect; and is subject to the additional conditions specified or incorporated below:

(1) Maximum Power Level NMGI-NSPM is authorized to operate the facility at steady state reactor core power levels not in excess of 1650 megawatts thermal.

(2) Technical Specifications The Technical Specifications contained in Appendix A, as revised through Amendment No. 482-are hereby incorporated in the license. NMG-NSPM shall operate the facility in accordance with the Technical Specifications.

(3) Physical Protection NIM.G-NSPM shall fully implement and maintain in effect all provisions of the Commission-approved physical security, guard training and qualification, and safeguards contingency plans including amendments made pursuant to provisions of the Miscellaneous Amendments and Search Requirements revisions to 10 CFR 73.55 (51 FR 27817 and 27822) and to the authority of 10 CFR 50.90 and 10 CFR 50.54(p). The combined set of plans, which contains Safeguards Information protected under 10 CFR 73.21, is entitled: "Prairie Island Nuclear Generating Plant Security Plan, Training and Qualification Plan, Safeguards Contingency Plan, and Independent Spent Fuel Storage Installation Security Program," Revision 1, submitted by letters dated October 18, 2006 and January 10, 2007.

Unit 1 Amendment No.-4!82

(4) Fire Protection NIMGNSPM shall implement.and maintain in effect all provisions of the approved fire protection program as described and referenced in the Updated Safety Analysis Report for the Prairie Island Nuclear Generating Plant, Units 1 and 2, and as approved in Safety Evaluation Reports dated February 14, 1978, September 6, 1979, April 21, 1980, December 29, 1980, July 28, 1981, October 27, 1989, and October 6, 1995, subject to the following provision:

NIMGNSPM may make changes to the approved Fire Protection Program without prior approval of the Commission only if those changes would not adversely affect the ability to achieve and maintain safe shutdown in the event of a fire.

(5) Additional Conditions The Additional Conditions contained in Appendix B, as revised through Amendment No. 161, are hereby incorporated into this license. NIMG-NSPM shall operate the facility in accordance with the Additional Conditions.

(6) Mitigation Strategy License Condition Develop and maintain strategies for addressing large fires and explosions and that include the following key areas:

(a) Fire fighting response strategy with the following elements:

1. Pre-defined coordinated fire response strategy and guidance

2. Assessment of mutual aid fire fighting assets

3. Designated staging areas for equipment and materials

4. Command and control

5. Training of response personnel (b) Operations to mitigate fuel damage considering the following:

1. Protection and use of personnel assets

2. Communications

3. Minimizing fire spread

4. Procedures for implementing integrated fire response strategy

5. Identification of readily-available pre-staged equipment

6. Training on integrated fire response strategy

7. Spent fuel pool mitigation measures (c) Actions to minimize release to include consideration of:

1. Water spray scrubbing

2. Dose to onsite responders Unit 1 Revised by letter 6, 2007

ae~uut

2. D. This license is effective as of the date of issuance and shall expire at midnight August 9, 2013.

FOR THE ATOMIC ENERGY COMMISSION Original Signed by Roger S Boyd A. Giambusso, Deputy Director for Reactor Projects Directorate of Licensing Attachments:

1. Appendix A - Technical Specifications

2. Appendix B - Additional Conditions Date of Issuance: April 5, 1974 Unit 1 Amendment No. 464 Revised by loller dated August 16, 2007

NORTHERN STATES POWER COMPANY N IUCLEAR MANAGEMENT COMPANY, LL DOCKET NO. 50-306 PRAIRIE ISLAND NUCLEAR GENERATING PLANT, UNIT 2 FACILITY OPERATING LICENSE License No. DPR-60 Amendment No. -444

1. The Atomic Energy Commission (the Commission) having found that:

A. The application for license filed by Northern States Power Company* (NSPM) complies with the standards and requirements of the Atomic Energy Act of 1954, as amended (the Act), and the Commission's rules and regulations set forth in 10 CPR Chapter I and that all required notifications to other agencies or bodies have been duly made; B. Construction of the Prairie Island Nuclear Generating Plant, Unit 2 (the facility), has been substantially completed in conformity with Provisional Construction Permit No. CPPR-46, as amended, the application, as amended, the provisions of the Act, and the rules and regulations of the Commission; C. The facility will operate in conformity with the application, as amended, the provisions of the Act, and the rules and regulations of the Commission; D. There is reasonable assurance: (i) that the activities authorized by this operating license can be conducted without endangering the health and safety of the public, and (ii) that such activities will be conducted in compliance with the rules and regulations of the Commission; E. NMC is technically qualified and Northern States Power CompanyNSPM is technically and financially qualified to engage in the activities authorized by this operating license in accordance with the rules and regulations of the Commission; F. Nor.ther States Power ep-,yNSPM and NMC have-has satisfied the applicable provisions of 10 CFR Part 140, "Financial Protection Requirements and Indemnity Agreements", of the Commission's regulations; G. The issuance of this amended license will not be inimical to the common defense and security or to the health and safety of the public;

• Nuclear Management Company, LLCG, hereinafter referred to as NMCI, SUcceeds NorFthern States Power Company as operator of the Prairie island Nucliear Generating Plant, Uit 2 Consequently, NMCI is authorized to act as agent for Northern States Power Company and has exclusive responsibility and control over physical construction, operation, and mnaintenance of the facility.

2 H. After weighing the environmental, economic, technical, and other benefits of the facility against environmental costs and considering available alternatives, the issuance of Facility Operating License No. DPR-60 is in accordance with 10 CFR Part 50, Appendix D, of the Commission's regulations and all applicable requirements of said Appendix D have been satisfied; and The receipt, possession, and use of source, byproduct and special nuclear material as authorized by this license will be in accordance with the Commission's regulations in 10 CFR Parts 30, 40 and 70, including 10 CFR Section 30.33, 40.32, 70.23, and 70.31.

2. Facility Operating License No. DPR-60 is hereby issued to read as follows:

A. This license applies to the Prairie Island Nuclear Generating Plant, Unit 2, a pressurized water nuclear reactor and associated equipment (the facility), owned by the Northern States Power Company1 (NSPM). The facility is located in Goodhue County, Minnesota, and is described in the "Final Safety Analysis Report" as supplemented and amended (Amendments 1 through 38) and the Environmental Report as supplemented and amended (Supplements 1 and 2).

B. Subject to the conditions and requirements incorporated herein, the Commission hereby licenses:

(1) Pursuant to Section 104b of the Act and 10 CFR Part 50, "Licensing of Production and Utilization Facilities," Northern States Power

..-. pan-y..SPM to possess, and NMC4te use, and operate the facility at the designated location in Goodhue County, Minnesota, in accordance with the procedures and limitations set forth in this license; (2) Pursuant to the Act and 10 CFR Part 70, NMC-NSPM to receive, possess and use at any time special nuclear material as reactor fuel, in accordance with the limitations for storage and amounts required for reactor operation, as described in the Final Safety Analysis Report, as supplemented and amended as of May 11, 1976.

(3) Pursuant to the Act and 10 CFR Parts 30, 40 and 70, NM.C-NSPM to receive, possess, and use at any time any byproduct, source and special nuclear material as sealed neutron sources for reactor startup, sealed sources for reactor instrumentation and radiation monitoring equipment calibration, and as fission detectors in amounts as required; (4) Pursuant to the Act and 10 CFR Parts 30, 40, and 70, NMCNSPM to receive, possess and use in amounts as required any byproduct, source or special nuclear material without restriction to chemical or physical form, for sample analysis or instrument and equipment calibration or associated with radioactive apparatus or components; 1Northern States Power Company was incorporated in Minnesota as a wholly owned subsidiary of Xcel Energy, Inc. effective August 18, 2000. This license, as amended, was amendedý effective this date to reflect the Commission's consent per 10 CFR Part 50, Section 50.80 to the license transfer approved by Order dated May 12, 2000.

3 (5) Pursuant to the Act and 10 CFR Parts 30 and 70, NMVGNSPM to possess but not separate, such byproduct and special nuclear materials as may be produced by the operation of the facility; (6) Pursuant to the Act and 10 CFR Parts 30 and 70, NMI=G-NSPM to transfer byproduct materials from other job sites owned by NSPM Northern States P ...... ....... for the purposes of volume reduction and decontamination.

C. This amended license shall be deemed to contain and is subject to the conditions specified. in the following Commission regulations in 10 CFR Chapter I: Part 20, Section 30.34 of Part 30, Sections 50.54 and 50.59 of Part 50, and Section 70.32 of Part 70; is subject to all applicable provisions of the Act and to the rules, regulations, and orders of the Commission now or hereafter in effect; and is subject to the additional conditions specified or incorporated below:

(1) Maximum Power Level NMG-NSPM is authorized to operate the facility at steady state reactor core power levels not in excess of 1650 megawatts thermal.

(2) Technical Specifications The Technical Specifications contained in Appendix A, as revised through Amendment No.-1-2, are hereby incorporated in the license. NMC=-NSPM shall operate the facility in accordance with the Technical Specifications.

(3) Physical Protection NIMC-NSPM shall fully implement and maintain in effect all provisions of the Commission-approved physical security, guard training and qualification, and safeguards contingency plans including amendments made pursuant to provisions of the Miscellaneous Amendments and Search Requirements revisions to 10 CFR 73.55 (51 FR 27817 and 27822) and to the authority of 10 CFR 50.90 and 10 CFR 50.54(p). The combined set of plans, which contains Safeguards Information protected under 10 CFR 73.21, is entitled:

"Prairie Island Nuclear Generating Plant Security Plan, Training and Qualification Plan, Safeguards Contingency Plan, and Independent Spent Fuel Storage Installation Security Program," Revision 1, submitted by letters dated October 18, 2006 and January 10, 2007.

Unit 2 Amendment No. 1-7-2

4 (4) Fire Protection NMG-NSPM shall implement and maintain in effect all provisions of the approved fire protection program as described and referenced in the Updated Safety Analysis Report for the Prairie Island Nuclear Generating Plant, Units 1 and 2, and as approved in Safety Evaluation Reports dated February 14, 1978, September 6, 1979, April 21, 1980, December 29, 1980, July 28, 1981, October 27, 1989, and October 6, 1995, subject to the following provision:

NMG-NSPM may make changes to the approved Fire Protection Program without prior approval of the Commission only if those changes would not adversely affect the ability to achieve and maintain safe shutdown in the event of a fire.

(5) Additional Conditions The Additional Conditions contained in Appendix B, as revised through Amendment No.-1-52, are hereby incorporated into this license. NMIG-NSPM shall operate the facility in accordance with the Additional Conditions.

(6) Mitiqation Strategy License Condition Develop and maintain strategies for addressing large fires and explosions and that include the following key areas:

(a) Fire fighting response strategy with the following elements:

1. Pre-defined coordinated fire response strategy and guidance

2. Assessment of mutual aid fire fighting assets

3. Designated staging areas for equipment and materials

4. Command and control

5. Training of response personnel (b) Operations to mitigate fuel damage considering the following:

1. Protection and use of personnel assets

,2. Communications

3. Minimizing fire spread

4. Procedures for implementing integrated fire response strategy

5. Identification of readily-available pre-staged equipment

6. Training on integrated fire response strategy

7. Spent fuel pool mitigation measures (c) Actions to minimize release to include consideration of:

1. Water spray scrubbing

2. Dose to onsite responders Unit 2 Revised by letter dated August 16, 200

5

2. D. This license is effective as of the date of issuance and shall expire at midnight October 29, 2014.

FOR THE ATOMIC ENERGY COMMISSION Original Signed by A. Giambusso A. Giambusso, Deputy Director for Reactor Projects Directorate of Licensing Attachments:

1. Appendix A - Technical Specifications

2. Appendix B - Additional Conditions Date of Issuance: October 29, 1974 Unit 2 Amendment No. 4-52 Revisd by Iletter dated August 16, 2007

Unit 1 REV 158 8/7/00 APPENDIX B ADDITIONAL CONDITIONS FACILITY OPERATING LICENSE NO. DPR-42 manaaement Ceomnanv LLNorthlern States Power romnanv (KNIPMI shall comply with the L I I Nucl'ear .. ........... F--I * ....... (

following conditions on the schedules-noted below:

Amendment Implementation Number Additional Condition Date 128 1. NSPM. will provide a licensed operator in the control Prior to Unit 2 room on an interim basis for the dedicated purpose of entering Mode 2 identifying an earthquake which results in a decreasing safeguards cooling water bay level. This operator will be in Completed - See addition to the normal NSPM administrative control room Amendment No.

staffing requirements and will be provided until License 140 Condition 2 is satisfied.

128 2. NSPM* will submit dynamic finite element analyses of the July 1, 1997, and intake canal banks by July 1, 1997 for NRC review. By December 31, December 31, 1998, NSPM will complete, as required, 1998, as stated in additional analyses or physical modifications which provide Condition 2.

the basis for extending the time for operator post-seismic cooling water load management and eliminating the Completed - See dedicated operator specified in License Condition 1. Amendment No.

140 128 3. Based on the results of License Condition 2, NSPM- will At the next USAR revise the Updated Safety Analysis Report to incorporate update following the changes into the plant design bases. These changes completion of will be included in the next scheduled revision of the Condition 2, but no Updated Safety Analysis Report following completion of later than June 1, License Condition 2 activities. 1999.

130 4. Prairie Island will assure that heavy loads do not present This is effective a potential for damaging irradiated fuel through use of: 1) a immediately upon single-failure-proof crane with rigging and procedures which issuance of the implement Prairie Island commitments to NUREG-0612; or amendment.

2) spent fuel pool covers with their implementing plant procedures for installation and use.

133 5. NIMINSPM will assure that during the implementation of This is effective steam generator repairs utilizing the voltage-based repair immediately upon criteria, the total calculated primary to secondary side issuance of the leakage from the faulted steam generator, under main amendment steam line break conditions (outside containment and upstream of the main steam isolation valves), sill not exceed 1.42 gallons per minute (based on a reactor coolant system temperature of 578 OF).

• Refecrcne to NSP is miaintained- for historical;; purposes.

Amendment No. 4-53 B-1

Unit 2 R*E\ 1 Ul217100 APPENDIX B ADDITIONAL CONDITIONS FACILITY OPERATING LICENSE NO. DPR-60 NuWlear Management CompaRy, LLCNorthern States Power Company (NSPM) shall comply with the following conditions on the schedules noted below:

Amendment Implementation Number Additional Condition Date 120 1. NSP-*M will provide a licensed operator in the control Prior to Unit 2 entering room on an interim basis for the dedicated purpose of Mode 2 identifying an earthquake which results in a decreasing safeguards cooling water bay level. This operator will be in Completed - See addition to the normal NSPM administrative control room Amendment No. 131 staffing requirements and will be provided until License Condition 2 is satisfied.

120 2. NSP*-M will submit dynamic finite element analyses of the July 1, 1997, and intake canal banks by July 1, 1997 for NRC review. By December 31, 1998, as December 31, 1998, NSPM will complete, as required, stated in Condition 2.

additional analyses or physical modifications which provide the basis for extending the time for operator post-seismic Completed - See cooling water load management and eliminating the Amendment No. 131.

dedicated operator specified in License Condition 1.

120 3. Based on the results of License Condition 2, NSP*M. will At the USAR update revise the Updated Safety Analysis Report to incorporate the following completion of changes into the plant design bases. These changes will be Condition 2, but no later included in the next scheduled revision of the Updated than June 1, 1999.

Safety Analysis Report following completion of License Condition 2 activities.

122 4. Prairie Island will assure that heavy loads do not present This is effective a potential for damaging irradiated fuel through use of: 1) a immediately upon single-failure-proof crane with rigging and procedures which issuance of the implement Prairie Island commitments to NUREG-0612; or amendment.

2) spent fuel pool covers with their implementing plant procedures for installation and use.

125 5. NMC-NSPM will assure that during the implementation of This is effective steam generator repairs utilizing the voltage-based repair immediately upon criteria, the total calculated primary to secondary side issuance of the leakage from the faulted steam generator, under main steam amendment line break conditions (outside containment and upstream of the main steam isolation valves), sill not exceed 1.42 gallons per minute (based on a reactor coolant system temperature of 578 IF).

• RefI crIVVen to_NIS P BIGmaintained for hiOsto1ric`al*

Ipurposes.

B-1

Plant Staff Qualifications 5.3 5.0 ADMINISTRATIVE CONTROLS 5.3 Plant Staff Qualifications 5.3.1 Each member of the plant staff shall meet or exceed the minimum qualifications of Regulatory Guide 1.8, Revision 1, September 1975 except for (1) personnel who perform the function of shift technical advisor shall hold an SRO license and have a bachelors degree or equivalent in a scientific or engineering discipline with specific training in plant design, and response and analysis of the plant for transients and accidents, (2) the operations manager who shall meet the requirements of ANSI N 18.1-1971, except that NRC license requirements are as specified in TS 5.2.2.e, and (3) the education and experience eligibility requirements for operator license applicants, and changes thereto, shall be those previously reviewed and approved by the NRC, specifically those referenced in NMC* letter dated March 19, 2003.

5.3.2 For the purpose of 10 CFR 55.4, a licensed senior reactor operator (SRO) and a licensed reactor operator (RO) are those individuals who, in addition to meeting the requirements of TS 5.3.1, perform the functions described in 10 CFR 50.54(m).

• NMC is maintained as historical information Prairie Island Unit 1 - Amendment No. 158415.9 Units 1 and 2 5.0-5 Unit 2 - Amendment No. 149---50

ENCLOSURE 4 Marked-up Special Nuclear Materials License No. SNM-2506 And Technical Specifications Pages for Independent Spent Fuel Storage Installation Prairie Island Nuclear Generating Plant Docket No. 72-10

UNWEDSTATES NUCLEAR REGULATOR-,Y COMMISSION PAMeP-~4 G-DMENTTG... LACENSE NO: NM2 -ATERIALS I ,*Arnendment2 lcneNM-2606 The Nulear RegUlatdryý Co mssion h Co msi )ha founld tha A. TheN amei~r dmegtlat pp:l*icationhdated Augus31. i a+99 .upeeted Noembe 8l 999; ,March -13,*A-ptfl.6; andb&o-E ~rplswt', tnad and'requmes j, f tletr~ nryA~f~ asiamene trc) n the Coffi~mlsIoSInrp reuns~set-,forth'ln: I1O CFR chapter I;,

. The,?rer land Ineel* ntt* ntFuel torage. ' ai+on ._.wyilln

.c..ontinue~to, amendment

(*rat~i~ddnithft+r'lltlh.tone cnbe UWO enagen apmlcm'inpi,ra miidedthe h~tadftyan LUfl pm~isidion'hes c (I)uchaciies:ad r'Te codute ID. Theissuance ofthisarnendmert.wll not. bemlcai'to i the commontfensead E. Theissuace of this anaidment is i ord ricw 0 OFR Part 51 of/th Corhrnitsonsegu 000,~is&nd ý ap__b~ hove beeraiSAfiid..

1. Otiý&n 2.

Accordingly,; teiceise is amnqnjd bh c chal s+to Materi*Ucnse No.

SNM2= J ndkicted by rnr~nnoaios

p. This license aqmendiment is effetv a date, o'fits issuance.

-ofthe FOR THE U.S. -NUCLEAR. REUAt - ORYI_CoMMISSIONW Spent NulP~jc f c Efncosure Reisedt censePagq's, of Isuac of~hAmendmet Date rb-,: 2 01

.UNITED STATES

• • NUCLEAR: REGULATORY COMMISSION h... ASHINGTON, D.C. 2055570100V

- 41f ' NUCL[sF r1NMG~Ir0 D C. FAIIY. LLC' 4 NORTHERN STATES POWE-R COMPAN17 DOCKETINO. 7210 PRAIRIEISLAND INDEPENDENT SPENT FUEL STORAGE.INSTALLATION AMENDMENT TO MATERIALS LICENSE NO. SNM-2506 Amendment "

License SNM-2506

1. The Nuclear Regulatory CQommission (the.Commission) has foundfhat:

A. The amendment application dated October:29, 1999,:as supplemehted March 14,'2000, complies with the standards and requirements'bof the Atomic Energy Act of 1954, as amended (the Act), and the CommiSsion's regulations set forth in 100GFR Chapter 1-i B. The PrairieIsland Independent Spent Fuel Storage Installation will.continue to:operate inconformity with the:Application, as amended, the provisions of thetAct, and the rules and regulationsof th6eCommissison; C: There is reasonable assurance that (i) the activities authorized ýby this amendment can be conducted without endangering public health andsafety, and (ii) such activitiesvwll be conducted iln compliancewith the*Commission's regulations; D T issuance of this amendment will not be.inimical to the common defense and The security or to public health and safety; and E.: The issuance of this amendment'is in accordance with 10 CFR, Partr51 of the Commission's regulations and all applicable requirements have been satisfied;

2. Accordingly, the license is amehded byVthe.enclosed changes to Materials License No.

SNM2506,indicated! by. rnargin notations:.

Ncer Manaemen Company, LLC,, hereinafter referredt c oter tae Power Company~as operatortof thePrairie ependent.Spent Fuel Storage Installation.

Consequently,. NMC isl o,act as'age nt ftr Norther States Power Company and-hasý pnsblitý' and control ove r physical: construction, operatio~n, and maintenance: of the facility..

Northern St4ats Power Company was: incorporated: inMinnesota asa wholly owned subsidiaryiof'XCe, Energy, Inc., effective August 18, 2000Q This license, as aniended, was amended effective thiiS date to refl6ct the Commission's consent per 10 CFR Part 72,.:sedtion 72.50, to the license transfer approved b. order. ate.d a. 2, 2000 ....

3. This license amendment is effe6dtive'as 6f the date ofits is'suan.ce.

FQR THE U-.S. NUCLEAR REGULATORY COMMISSiON E. William Brach, Director Spenrt Fuel Project Office Office of Nuclear' Material.Safety and&Sa.feguards:

Enclosure:

Revised License Pages Date-of. Issuance of Amendmen.t: Atiuust.. 18,,_ 2000

WNRC FORM 5aIF 10CFR~72 ~PAGE. J. OF j PAGES LICENSE FOR INDEPENDENTSTORAGE OFZSPENT NUCLEAR FUEL AND HIGH-LEIVEL RADIOACTIVE WASTE_______

Pursuent týothe Atomic Energy Act of 1954,, as amended, the Energy Reorganlzation Act 6f 1974 (PublUcLaw93-438)ý,and Tit4e 10, Code of Federa) Regulations, Chaipter 1, Part7?2, and In reliance an statements and representations here tfore made by the licensde, a license Isliereby ýissued authoriizng the i~censeeto receive, acquiire, and possass theopor re~o pifuel and other radioactive materials assoclat ,edMIthso spent fueterag~hie designated below; to use such mateýria l frthepurPo.Qse(s) and Mtth e place(s) 0 1 igtd 6616w; and to deliver IOrtransfer such material to persons authorized to receiveiA In accrdance with the regulatiuns of th&e aoppic~ble Pr(s). This icefise shall be de~emed to contain the condItions specified inSeqUon .i83ýfteAoi Eeg f194 saedd and S.ubjet 'to alliapicble rules, re laions, and;or*d*rs of the Niuclear Regulatory Commission' now r heallte rieffecand' to anY condltiOn40$pecifiedherin.

4.... .. .. . sN en 4Northern Statfes P0ower Complbny 3. License No. SNM,2506

- Amendment No. 5-2.414 Nicbllet Mall, Minneapolis, Minnesot . '* . 4. "x-:r,, October31, AI. Docke". or "..

AeeeeN

-L_

6. Byproduct, Source, andloe :7 Chbemicall ando*riPhysCcal. irm 8t:i.Maximum at AnymOne Amount May PRossess at.Licenseeý T:imei ..

'Undesr This LiceOns'e A, . ;715.29 TeU of spent fuel A. Spent fuel ass ,emblie's'from Praire*e-island Nuclear Station A~s 02~ clad z=ircoiu~m* alloys ii:!; ... A withý`iroumPTol:ý *" !assemblies; Units, I anld.2:reactors, using natur al Water ýfor coling and ennrihedi not gfreater than-3.85e'rcen~t U-Q235 1 and associated radioactive

• mlater'ials related to ieceipt, storage fueli asembliesand tra*sfer of thel:

iB. Irradiated fuel assembly .;*B! :St& i3t04 structure. icenel 718 B.-;. one BPRA or TPD per iserts from 'the Prairlae ,* g3rss,.. 6" d "spbnt fuel assembly.

-ISland Nbuleair Statioh.Uints:',

I and 2 rea ctor. An insert may be abburnable.poishn rod'. assembly (BPRA) ýbir

.)L.. ""'- ";.

I.dSI I t S..

. ' V ~ .  ! . .. .. . . .. . . , . . . . . . . . .

Nu' lear Mnagement Comnpany, LL rrdt Campany s-NMC, succeeds Northern States Power,'

and has exNlusirp bility t aNesPw andor oe ph a6cntrotion, operationand maitntenanceofthe faility.

• orthern N States_.Power Cmorpan ywast inortprated. n Minnesotanasa whollyowned subspidiar of cel Energy,

'date Ic.;,effective Au*Ut.18i to reflecttheComiSions 2000 per T.

consent Thiis license, 72 as amended, Sti 7250, was amended to the licenseeffective transferthis approved by order dated Ma- 12, 2000 TOTAL P"."02

FNRCFORM,588A U.US: NUCLEARREGULATORY COMMISSION. PAGE: 2 4- PAGEOS

,(0C"200") . ',License No: SNMW2506 Amendment N;4;!,

10 CFR 72-

'LICENSE.FOR INDEPENDENT'STORAGE OF SPENT NUCLEAR ___

f*l

""FUEL AND....HIGHLEVEL

.. w R A ... .... .

RADIOACTIVEIWASTE . D.I. ..;..

. .. . .. .Nqi72-10

,R6et6I.Rlerence "

SUPPL'EMENTARY'SHEET

9. Authoiized u*e: For use in accordance with statements,. representations, andthe-conditions of-the, Techni6,l Specifications and sa* t*:jAnalysis Reprt dated August 311990, and.s'Up lements dated October-29, Janry 17,ý .1990; April6, 2, 10,June'5, and 12,Octob*er9-andt31,, N6vimler 15,December11,2*, and 23, Feruary March 2 and 5, Aprili3, 22, and 23, July 10, August12; 13%1991; and 14,

1992;*October 2.1995; August31 OCt6ber29.and November 24,1999;.and Februa, 2, Marth 14,Andnd October 16 200 ...

The material identified in 6 and Tabove is'authorized.for receipt, possession, stcorage, andtransIfer.

10. Authorized Placeo:f Use: The icenised, raterial is to b6 ieceived possessed,.transferred, , and storedat theprairie IslandlSFSIl:ocated ýonthe-Praire Island Nuclear.Geneatihng Plant sitei Gn"odhue.Coun6ty; Minnesot,.

11. this sijteis described in .Ch(apter 2 of the Technical Specificatidns.and Safety Analysis Repot (TS/SAR) for the Prairi Island ISFSI. .. ,

12l. Theechnical Specificqationps.c nx A a hereto are "icrp*iratedinto thed!ie se.! !operatethe instalaR" iaccordance with the Technical Spcf1 ain din Apendix - 10 rl, is i '14.9o t~h

13. .s0al fully impleme I..a mainthaih in effect all pro*visions of the *SPFS physical security, guard ualification, and safeguards contingency plans t by t I a'nd al[midlments; r e p*s it to the authority of-A CFR' 72. :(e), and 72.186. The plans, which S wh ont nera"tin f:afinoW tedd"'a Underg " 10 n htFrtien eIStCF $-Zl, 6 titled'. "PrairieIlsland

.~....P " ..

Nuclear Generating 6[ht Indep0 1 ,edan aal NuI ein Security Pl Plan,"

Revision_ 0, submitfe'dby letter.4da a* 1-1 "ai,0 aGeneratin In~depiendient-Spent '*Fue1 subm~itte'dby lette~r da**d Marc Sto jbri "t .

,andf- P~rairie I l. re' iin_

q q(

and ulificpation 1earGen6rtnr Pln 6l~ar-:Gbn ian.1tPlan,"

[rdpnd Revision e... 0, Inepedn Spen6h~t Marc~h Fuiel. Sto*gQ *'ntallati 10,1-992;.* S~ s 'ti ~P Re'vision

• ..." 0,sibmitted

.... by

"..letter dated

14. The -Tec-nic-al SpecifiP nAp dixA attached hereto are incorporated into the..icen.e. . .

Specifica tionsrequir ursu ltes 6n th ease of ra dioabtivie mateirials for complian e-" th lim 0C R all w, as iis easoabiyachlievable 6be-tie" for effluent ot app l e rfac ntarination withih the. limits ofl are noo ror -A.ensures: ~~seqqentI. phtt~" I diin hr the pec e ,6u-sealed storage caslsof

ISFSI...

.Specificationsrequire'd pursuant to *0F ,24,$dik(4, fo,_operatina irocedures, for-control of effluentsi and for tlthemaintehanice andI ,u'seof %epert in radioactive waste tr-eatmentssstem-I  % s, to meet the.requirementsbf 10iCFR 72.104.are ntpplic6ble.. Therea by the.design ofthe sealed storage0c1ask at therISFS,, no effluent releases. Also, cask loading and unloading operations and..

waste. treatmentw'Will ocur'.aAt the"Prarie_ Island Nuclear 4- GeneratingPlant, undýr'tbe specificatiofns f its operating licenses.

!NRCFORM588A' U..$:,NUCLEAR REGULATORY COMMISSION PAGE :oOF 4. PAGES 4I6(lO.00)1 2ioR Lc-ense No. SN -20 mn enNo: 1' LICENSE FOR-INDEPENDENT STORAGE OF SPENT NUCLEAR

..... FUEAND HIH-"LEVEL R"DIOACTIVE WASTE Docket or.Referwe No 72-10

15. NoS pent4nucear fue. shall be'aIIowed to be loaded until such time as the folloWing d reoperatiohal liense ndietion'saresatisfied:

• A. At4raining exercise (Dry'Run)-of all. TN-40.caskiloadihg and handling activities shall e held, whichch sha'll :include,..bUt not be limitedjto, thoselisted,-and which need not-be performed inithe 0rder.,listedl:.

a. Movin.g cads~k in and qut.:ofspent fuel poolrarea

b. Loading. fuel assemblyj(us'ing dummy assembly)

'c. Caskdrying, sealing, arid cdover gas backfillirig bepiitionSI

d. Moving cask tqo, and.placighon V toage p.had

f. Unoading thecask.

Dhocaing Rg.qr the u.cask van bn r eqired- to* incude;thIS The Prii.... t~nd Nuclear, ian shall".*brev~iewed =and . modified,

. as tAinin dry-i~ a 6t-1b a onuing r~ictif06 / ue

. Atrig*.ul Jear Jnerating Plant Trning Pr~ogiram, ;e's~tablishin

d. Fel oadg: i nIS

• ,l ask handlihg pialtirce0Ui4es r!am~t*'iawll' g.include th folwg n Todfed, asequtiredito inc llud

-heISlrfSI.fe adprore ocso ht

c. ISFSI Saf .nalysis (overvi mduified, asreqlird' '.IncueS h to~h E. The Praire 'islandNuclear Generating PlantAdministrative Procedures.shalibe:areviewed and F. A Procedureshall bef deIeloped and implemented for the documentation, of the.characterzations

-pefor'ed to select p~e'nt fuiel tobIstoredlir acsks the Suchprocedure shall include ideprenent verification.o0f fuela:ssembly -seletion by an ind*dal otherthan the original:

individul mayking the selection.

G.. A procedure, shallbe:developed and implemented for two iandependent determinations,.(two.r E Tesamples anlyzeud bydifferent individuals).of :the bronconcentration in-the water used.t fill the ca*skavitY for fuel l.oadinn.duloading activitie-s. .

H17. Awritten 'procedures shall be impde lementedtodesfcribhe actionsto.bie takeodUring t operatioIn, ioff-

", .normalI, anrd e lergeny c nditionts. .. ...... i ... .

[ NRC FORM 588A, 3jo CFREEA "U;. S NUCLEAR REGULATORiY CMMIWSS LICENSE FO~R INDEPENDNT S'TORAGE OF SPENT NUC.LEAR3 FUEL A`ND HIG-LVLADATVE SE I

Docket or Rfei:ende No:.72-10Q

____________________________________________~11 16.; Tyhe design, construction, and oeperation of the ISFSI Shall be a'complished-ih accotdance, with the U.S.

Nuclear ReegulatorypCmmission Regulations specified ih Ttle 06of'the U.S. Code of Federal Read.latio-h:. AIl commiimrents- to rr dth applicable.

o ut. - NRC regulatory guides andt-- e6ngiieering anrd construction :ccde shall*be ca

17. FUel and cask"mbVement and handling activities thatare to belpeformed in theýirairie Island Nuclear GenertingPlaht'Auixiliar ra Generatinhi Building U

PlantkFacility Operatin* will 1 be govenMeldby and Licenses.(DRP.42 th- req-uiirementsof the6 Prairie Island Nuclear

--60) andassociated-Technical Specifications.

1:8. This li*cs6 is effec6tive as of th e date of issuanceshown below.

F=ORr. K'UCLEAhREGULA TORY.COMMISSION illiam" brch bh: r.

SS'pent.

Offie Fuel Projecqt',Office of Nuclear Material sfty

-and"Safeguards.

Washingt6n, D0C 20555

Date.J olsuahce:; Octobe5r 111 -993 ~

As amended ,by Amtendmen~'a

• • • • 4ý

)

PRAIRIE ISLAND INDEPENDENT SPENT FUEL STORAGE INSTALLATION APPENDIX "A" TO MATERIALS LICENSE SNM-2506 TECHNICAL SPECIFICATIONS ISSUED BY THE UNITED STATES NUCLEAR REGULATORY COMMISSION

SECTION 6.0 ADMINISTRATIVE CONTROLS

6.0 ADMINISTRATIVE CONTROLS 6.1 GENERAL W.C4.4tt, 43ý,\e Poe Ca. 635sPMX The Prairie Island ISFSI iocn thep mirie sland Nuclear nerating Plant site and will be managed and operated W e--., 6697 Ftaft. The administrative 11 controls shall be in accordance wi e requirements ot t-e Prairie island Nuclear Generating Plant Facility Operating Licenses (DPR-42 and -60) and associated Technical Specifications, as appropriate.

6.2 ENVIRONMENTAL MONITORING PROGRAM The licensee shall include the Prairie Island ISFSI in the environmental monitoring program for the Prairie Island Nuclear Generating Plant. An environmental monitoring program is required pursuant to 10 CFR 72.44(d)(2). The licensee shall include the ISFSI in the environmental monitoring report for the Prairie Island Nuclear Generating Plant, and a copy shall be sent to the Director, Office of Nuclear Material Safety and Safeguards.

6.3 ANNUAL ENVIRONMENTAL REPORT An annual report, as required by 10 CFR 72.44(d)(3), shall be submitted to the NRC Region Ill, Office, with a copy to the Director, Office of Nuclear Material Safety and Safeguards, within 60 days after January 1 of each year. This report should specify the quantity of each of the principal radionuclides released to the environment in liquid and in gaseous effluents during the previous year of operation and such other information as may be required by the Commission to estimate maximum potential radiation dose commitment to the public resulting from effluent release.

6-1 6-i Adnondmcnt did A11808 7, 200