ML022540534

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License Amendment, Transfer of Ownership Interests
ML022540534
Person / Time
Site: South Texas  STP Nuclear Operating Company icon.png
Issue date: 09/04/2002
From: Thadani M
NRC/NRR/DLPM/LPD4
To: Cottle W
South Texas
Thadani M, NRR/DLPM, 415-1476
References
TAC MB5942, TAC MB5943
Download: ML022540534 (26)


Text

September 4, 2002 Mr. William T. Cottle President and Chief Executive Officer STP Nuclear Operating Company South Texas Project Electric Generating Station P. O. Box 289 Wadsworth, TX 77483

SUBJECT:

SOUTH TEXAS PROJECT ELECTRIC GENERATING STATION, UNIT NOS. 1 AND 2 - ISSUANCE OF CONFORMING AMENDMENTS RE: TRANSFER OF OWNERSHIP INTERESTS TO TEXAS GENCO, LP (TAC NOS. MB5942 AND MB5943)

Dear Mr. Cottle:

By application dated May 31, 2001, as supplemented by letters dated June 14, August 13, October 16, November 7, 2001, August 14, 2002, and September 4, 2002, STP Nuclear Operating Company (STPNOC) on behalf of Reliant Energy Incorporated (Reliant), formerly known as Houston Lighting and Power Company, pursuant to Section 50.80 of Title 10 of the Code of Federal Regulations (10 CFR 50.80), requested approval of the indirect transfer of control of Reliants 30.8 percent interest in South Texas Project Electric Generation Station (STPEGS), Unit Nos. 1 and 2, under Facility Operating License Nos. NPF-76 and NPF-80, to CenterPoint Energy, Inc., a new parent holding company for Reliant, and, to the extent that an indirect transfer of control of the license as held by STPNOC would result, Reliants 30.8 percent interest in STPNOC (the licensed operator of STPEGS under the licenses) to CenterPoint Energy, Inc. The application also sought approval of the direct transfer of Reliants 30.8 percent ownership interest in STPEGS to Texas Genco, LP, which will be indirectly wholly-owned by CenterPoint Energy, Inc., and, to the extent a direct transfer of control would result, Reliants 30.8 percent ownership interest in STPNOC to Texas Genco, LP. The application, pursuant to 10 CFR 50.90 and 10 CFR 2.1315, also sought the approval of conforming amendments to the STPEGS operating licenses to reflect the direct transfer. On December 20, 2001, the NRC issued an Order approving the transfers. The Order also approved conforming amendments to be issued at the time the transfers were completed.

In a letter dated August 14, 2002, STPNOC informed the NRC that the transfer would occur on August 31, 2002. In that letter, STPNOC provided documentary evidence that it had obtained the appropriate amount of insurance required by 10 CFR Part 140.

Accordingly, the Commission has issued the enclosed Amendment No. 142 to Facility Operating License No. NPF-76 and Amendment No. 130 to Facility Operating License No.

NPF-80 for STPEGS, Units 1 and 2, respectively. The amendments reflect the transfer of control of Reliants 30.8-percent ownership interest in the STPEGS, Units 1 and 2, to Texas Genco, LP. The safety evaluation supporting the conforming amendments was enclosed with the Order issued on December 20, 2001.

W. Cottle Enclosure 3 contains seven copies of Amendment No. 6 to Indemnity Agreement No. B-108 for STPEGS, Units 1 and 2. Please keep six copies for your records and sign and return the other copy to the NRC.

Notice of Issuance will be included in the Commissions Biweekly Federal Register Notice.

Sincerely,

/RA/

Mohan C. Thadani, Senior Project Manager, Section 1 Project Directorate IV Division of Licensing Project Management Office of Nuclear Reactor Regulation Docket Nos. 50-498 and 50-499

Enclosures:

1. Amendment No. 142 to NPF-76
2. Amendment No. 130 to NPF-80
3. Amendment No. 6 to Indemnity Agreement No. B-108 cc w/encls: See next page

W. Cottle Enclosure 3 contains seven copies of Amendment No. 6 to Indemnity Agreement No. B-108 for STPEGS, Units 1 and 2. Please keep six copies for your records and sign and return the other copy to the NRC.

Notice of Issuance will be included in the Commissions Biweekly Federal Register Notice.

Sincerely,

/RA/

Mohan C. Thadani, Senior Project Manager, Section 1 Project Directorate IV Division of Licensing Project Management Office of Nuclear Reactor Regulation Docket Nos. 50-498 and 50-499

Enclosures:

1. Amendment No. to NPF-76
2. Amendment No. to NPF-80
3. Amendment No. 6 to Indemnity Agreement No. B cc w/encls: See next page DISTRIBUTION:

PUBLIC RidsOgcRp RDennig PDIV-1/RF GHill (4)

RidsNrrOD (S.Collins/J.Johnson) VDricks (VLD)

RidsNrrDlpmPdiv (WRuland) RidsRegion4MailCenter (BJohnson)

RidsNrrDlpmPdiv1(R.Gramm) SMorris, EDO (SAM1)

RidsNrrLAMMcAllister RidsSecyMailCenter RidsNrrPMDWrona RidsAcrsAcnwMailCenter RidsNrrPMMThadani RidsOpaMail ADAMS ACCESSION NUMBER: ML022540534 *concurrence via email OFFICE PDIV-1\PM PDIV-1\LA OGC* PDIV-1/SC NAME MThadani MMcAllister GKim RGramm DATE 8/20/02 8/20/02 8/30/02 8/28/02 Official Record Copy

South Texas, Units 1 & 2 cc:

Mr. Cornelius F. OKeefe A. H. Gutterman, Esq.

Senior Resident Inspector Morgan, Lewis & Bockius U.S. Nuclear Regulatory Commission 1111 Pennsylvania Avenue, NW P. O. Box 910 Washington, DC 20004 Bay City, TX 77414 Mr. T. J. Jordan, Vice President A. Ramirez/C. M. Canady Engineering & Technical Services City of Austin STP Nuclear Operating Company Electric Utility Department P. O. Box 289 721 Barton Springs Road Wadsworth, TX 77483 Austin, TX 78704 S. M. Head, Manager, Licensing Mr. M. T. Hardt Nuclear Quality & Licensing Department Mr. W. C. Gunst STP Nuclear Operating Company City Public Service Board P. O. Box 289, Mail Code: N5014 P. O. Box 1771 Wadsworth, TX 77483 San Antonio, TX 78296 Environmental and Natural Resources Mr. C. A. Johnson/R. P. Powers Policy Director AEP - Central Power and Light Company P. O. Box 12428 P. O. Box 289 Austin, TX 78711-3189 Mail Code: N5022 Wadsworth, TX 77483 Jon C. Wood Matthews & Branscomb INPO 112 East Pecan, Suite 1100 Records Center San Antonio, TX 78205 700 Galleria Parkway Atlanta, GA 30339-3064 Arthur C. Tate, Director Division of Compliance & Inspection Regional Administrator, Region IV Bureau of Radiation Control U.S. Nuclear Regulatory Commission Texas Department of Health 611 Ryan Plaza Drive, Suite 400 1100 West 49th Street Arlington, TX 76011 Austin, TX 78756 D. G. Tees/R. L. Balcom Brian Almon Houston Lighting & Power Co. Public Utility Commission P. O. Box 1700 William B. Travis Building Houston, TX 77251 P. O. Box 13326 1701 North Congress Avenue Judge, Matagorda County Austin, TX 78701-3326 Matagorda County Courthouse 1700 Seventh Street Bay City, TX 77414 July 2002

Susan M. Jablonski Office of Permitting, Remediation and Registration Texas Natural Resource Conservation Commission MC-122 P.O. Box 13087 Austin, TX 78711-3087 G. R. Bynog, Program Manager/

Chief Inspector Texas Department of Licensing and Regulation Boiler Division P. O. Box 12157, Capitol Station Austin, TX 78711 Mr. Ted Enos 4200 South Hulen Suite 630 Ft. Worth, Texas 76109

STP NUCLEAR OPERATING COMPANY DOCKET NO. 50-498 SOUTH TEXAS PROJECT, UNIT 1 AMENDMENT TO FACILITY OPERATING LICENSE Amendment No. 142 License No. NPF-76

1. The Nuclear Regulatory Commission (the Commission) has found that:

A. The application for amendment by STP Nuclear Operating Company* acting on behalf of itself and for Houston Lighting & Power Company (HL&P), the City Public Service Board of San Antonio (CPS), Central Power and Light Company (CPL), and the City of Austin, Texas (COA) (the licensees), dated May 31, 2001, and supplemented by letters dated June 14, August 13, October 16, November 7, 2001, August 14, 2002, and September 4, 2002, complies with the standards and requirements of the Atomic Energy Act of 1954, as amended (the Act), and the Commissions rules and regulations set forth in 10 CFR Chapter I; B. The facility will operate in conformity with the application, as amended, the provisions of the Act, and the rules and regulations of the Commission; C. There is reasonable assurance (i) that the activities authorized by this amendment can be conducted without endangering the health and safety of the public, and (ii) that such activities will be conducted in compliance with the Commissions regulations; D. The issuance of this license amendment will not be inimical to the common defense and security or to the health and safety of the public; and E. The issuance of this amendment is in accordance with 10 CFR Part 51 of the Commissions regulations and all applicable requirements have been satisfied.

  • STP Nuclear Operating Company is authorized to act for Houston Lighting & Power Company (HL&P), the City Public Service Board of San Antonio, Central Power and Light Company, and the City of Austin, Texas, and has exclusive responsibility and control over the physical construction, operation, and maintenance of the facility.
2. Accordingly, the license is amended as indicated in the attachment to this license amendment.
3. The license amendment is effective as of its date of issuance and shall be implemented within 30 days from the date of issuance.

FOR THE NUCLEAR REGULATORY COMMISSION

/RA/

Brian W. Sheron, Acting Director Office of Nuclear Reactor Regulation

Attachment:

Changes to the Operating License Date of Issuance: September 4, 2002

STP NUCLEAR OPERATING COMPANY DOCKET NO. 50-499 SOUTH TEXAS PROJECT, UNIT 2 AMENDMENT TO FACILITY OPERATING LICENSE Amendment No. 130 License No. NPF-80

1. The Nuclear Regulatory Commission (the Commission) has found that:

A. The application for amendment by STP Nuclear Operating Company* acting on behalf of itself and for Houston Lighting & Power Company (HL&P), the City Public Service Board of San Antonio (CPS), Central Power and Light Company (CPL), and the City of Austin, Texas (COA) (the licensees), dated May 31, 2001, and supplemented by letters dated June 14, August 13, October 16, November 7, 2001, August 14, 2002, and September 4, 2002, complies with the standards and requirements of the Atomic Energy Act of 1954, as amended (the Act), and the Commissions rules and regulations set forth in 10 CFR Chapter I; B. The facility will operate in conformity with the application, as amended, the provisions of the Act, and the rules and regulations of the Commission; C. There is reasonable assurance (i) that the activities authorized by this amendment can be conducted without endangering the health and safety of the public, and (ii) that such activities will be conducted in compliance with the Commissions regulations; D. The issuance of this license amendment will not be inimical to the common defense and security or to the health and safety of the public; and E. The issuance of this amendment is in accordance with 10 CFR Part 51 of the Commissions regulations and all applicable requirements have been satisfied.

  • STP Nuclear Operating Company is authorized to act for Houston Lighting & Power Company (HL&P), the City Public Service Board of San Antonio, Central Power and Light Company, and the City of Austin, Texas, and has exclusive responsibility and control over the physical construction, operation, and maintenance of the facility.
2. Accordingly, the license is amended as indicated in the attachment to this license amendment.
3. The license amendment is effective as of its date of issuance and shall be implemented within 30 days from the date of issuance.

FOR THE NUCLEAR REGULATORY COMMISSION

/RA/

Brian W. Sheron, Acting Director Office of Nuclear Reactor Regulation

Attachment:

Changes to the Operating License Date of Issuance: September 4, 2002

ATTACHMENT TO LICENSE AMENDMENT NOS. 142 AND 130 FACILITY OPERATING LICENSE NOS. NPF-76 AND NPF-80 DOCKET NOS. 50-498 AND 50-499 Replace the following pages of the Unit 1, Facility Operating License with the attached revised pages. The revised pages are identified by amendment number and contain marginal lines indicating the areas of change.

REMOVE INSERT 1 1 2 2 3 3 4 4 5 5 6 6 7 7 8

9 Replace the following pages of the Unit 2, Facility Operating License with the attached revised pages. The revised pages are identified by amendment number and contain marginal lines indicating the areas of change.

REMOVE INSERT 1 1 2 2 3 3 4 4 5 5 6 6 7

TEXAS GENCO, LP _

CITY PUBLIC SERVICE BOARD OF SAN ANTONIO CENTRAL POWER AND LIGHT COMPANY CITY OF AUSTIN, TEXAS STP NUCLEAR OPERATING COMPANY DOCKET NO. 50-498 SOUTH TEXAS PROJECT, UNIT 1 FACILITY OPERATING LICENSE License No. NPF-76

1. The Nuclear Regulatory Commission (the Commission or the NRC) has found that:

A. The application for a license filed by STP Nuclear Operating Company _

(STPNOC)*, acting on behalf of itself and for Texas Genco, LP, the City Public _

Service Board of San Antonio (CPS), Central Power and Light Company (CPL),

and City of Austin, Texas (COA) (the "Owners") complies with the standards and requirements of the Atomic Energy Act of 1954, as of 1954 as amended (the Act), and the Commissions regulations set forth in 10 CFR Chapter I, and all required notifications to other agencies or bodies have been duly made; B. Construction of the South Texas Project, Unit 1, (the facility) has been substantially completed in conformity with Construction Permit No. CPPR-128 and the application, as amended, the provisions of the Act, and the regulations of the Commission; C. The facility will operate in conformity with the application, as amended, the provisions of the Act, and the regulations of the Commission (except as exempted from compliance in Section 2.D. below);

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 Commissions regulations set forth in 10 CFR Chapter I (except as exempted from compliance in Section 2.D. below);

  • STPNOC is authorized to act for Texas Genco, LP, the City Public Service Board of San _

Antonio, Central Power and Light Company, and City of Austin, Texas and has exclusive _

responsibility and control over the physical construction, operation, and maintenance of the _

facility. _

Amendment No. 93, 142

SOUTH TEXAS LICENSE E. STPNOC is technically qualified to engage in the activities authorized by this _

license in accordance with the Commissions regulations set forth in 10 CFR Chapter I; F. The Owners have satisfied the applicable provisions of 10 CFR Part 140, "Financial Protection Requirements and Indemnity Agreements," of the Commissions regulations; G. The issuance of this 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 and other costs and considering available alternatives, the issuance of this Facility Operating License No. NPF-76, subject to the conditions for protection of the environment set forth in the Environmental Protection Plan attached as Appendix B, is in accordance with 10 CFR Part 51 of the Commissions regulations and all applicable requirements have been satisfied; and I. The receipt, possession, and use of source, byproduct and special nuclear material as authorized by this license will be in accordance with the Commissions regulations in 10 CFR Parts 30, 40 and 70.

2. Based on the foregoing findings, and approval by the Nuclear Regulatory Commission at a meeting on March 21, 1988, the License for Fuel Loading and Low Power Testing, License No. NPF-71 issued on August 21, 1987 is superseded by Facility Operating License NPF-76, hereby issued to STPNOC, Texas Genco, LP, City Public Service _

Board of San Antonio, Central Power and Light Company, and City of Austin, Texas (the licensees) to read as follows:

A. This license applies to the South Texas Project, Unit 1, a pressurized water reactor, and associated equipment (the facility) owned by Texas Genco, LP, City _

Public Service Board of San Antonio, Central Power and Light Company and City of Austin, Texas and operated by STPNOC. The facility is located in Matagorda County, Texas, west of the Colorado River, 8 miles north-northwest of the town of Matagorda and about 89 miles southwest of Houston and is described in the licensees Final Safety Analysis Report, as supplemented and amended, and in the licensees Environmental Report, as supplemented and amended.

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

Amendment No. 93, 142

SOUTH TEXAS LICENSE (1) STPNOC pursuant to Section 103 of the Act and 10 CFR Part 50, to possess, use and operate the facility at the designated location in Matagorda County, Texas, in accordance with the procedures and limitations set forth in this license; (2) Texas Genco, LP, the City Public Service Board of San Antonio (CPS), _

Central Power and Light Company (CPL), and the City of Austin, Texas (COA), pursuant to the Act and 10 CFR Part 50, to possess the facility at the designated location in Matagorda County, Texas, in accordance with the procedures and limitations set forth in this license; (3) STPNOC, pursuant to the Act and 10 CFR Part 70, 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; (4) STPNOC, pursuant to the Act and 10 CFR Parts 30, 40 and 70, 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; (5) STPNOC, pursuant to the Act and 10 CFR Parts 30, 40 and 70, 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 (6) STPNOC, pursuant to the Act and 10 CFR Parts 30, 40 and 70, to possess, but not separate, such byproduct and special nuclear materials as may be produced by the operation of the facility authorized herein.

C. This license shall be deemed to contain and is subject to the conditions specified in the Commissions regulations set forth 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 STPNOC is authorized to operate the facility at reactor core power levels not in excess of 3,853 megawatts thermal (100% power) in accordance with the conditions specified herein.

Amendment No. 138, 142

SOUTH TEXAS LICENSE (2) Technical Specifications The Technical Specifications contained in Appendix A, as revised through Amendment No. , and the Environmental Protection Plan contained in Appendix B, are hereby incorporated in the license. STPNOC shall operate the facility in accordance with the Technical Specifications and the Environmental Protection Plan.

(3) Antitrust Conditions Texas Genco, LP, City Public Service Board of San Antonio, Central _

Power and Light Company and City of Austin, Texas (the "Owners") shall comply with the antitrust conditions delineated in Appendix C to this license; Appendix C is hereby incorporated into this license.

STPNOC shall not market or broker power or energy from South Texas Project Unit 1. The Owners are responsible and accountable for the actions of STPNOC to the extent that said actions affect the marketing or brokering of power or energy from South Texas Project Unit 1 and, in any way, contravene the antitrust conditions of this paragraph or Appendix C of this license.

(4) Initial Startup Test Program (Section 14, SER)*

Any changes to the Initial Test Program described in Section 14 of the Final Safety Analysis Report made in accordance with the provisions of 10 CFR 50.59 shall be reported in accordance with 50.59(b) within one month of such change.

(5) Safety Parameter Display System (Section 18, SSER No. 4)*

Before startup after the first refueling outage, HL&P[**] shall perform the necessary activities, provide acceptable responses, and implement all proposed corrective actions related to issues as described in Section 18.2 of SER Supplement 4.

(6) Supplementary Containment Purge Isolation (Section 11.5, SSER No. 4)

HL&P shall provide, prior to startup from the first refueling outage, control room indication of the normal and supplemental containment purge sample line isolation valve position.

  • The parenthetical notation following the title of many license conditions denotes the section of the Safety Evaluation Report and/or its supplements wherein the license condition is discussed.
    • The original licensee authorized to possess, use and operate the facility was HL&P.

Consequently, historical references to certain obligations of HL&P remain in the license conditions Amendment No. 93, 142 _

SOUTH TEXAS LICENSE _

(7) License Transfer _

Texas Genco, LP shall provide decommissioning funding assurance, to _

be held in decommissioning trusts for South Texas Project, Unit 1 (Unit 1) _

upon the direct transfer of the Unit 1 license to Texas Genco, LP, in an _

amount equal to or greater than the balance in the Unit 1 _

decommissioning trust immediately prior to the transfer. In addition, _

Texas Genco, LP shall ensure that all contractual arrangements referred _

to in the application for approval of the transfer of the Unit 1 license to _

Texas Genco, LP to obtain necessary decommissioning funds for Unit 1 _

through a non-bypassable charge are executed and will be maintained _

until the decommissioning trusts are fully funded, or shall ensure that _

other mechanisms that provide equivalent assurance of decommissioning _

funding in accordance with the Commissions regulations are maintained. _

(8) License Transfer _

The master decommissioning trust agreement for Unit 1, at the time the _

direct transfer of Unit 1 to Texas Genco, LP is effected and thereafter, is _

subject to the following: _

a. The decommissioning trust agreement must be in a form _

acceptable to the NRC. _

b. With respect to the decommissioning trust funds, investments in _

the securities or other obligations of CenterPoint Energy, Inc., or _

its affiliates, successors, or assigns, shall be prohibited. Except _

for investments in funds tied to market indices or other non- _

nuclear sector mutual funds, investments in any entity owning one _

or more nuclear power plants are prohibited. _

c. The decommissioning trust agreement must provide that the _

trustee, investment advisor, or anyone else directing the _

investments made in the trusts shall adhere to the standards for _

such investments established by the Public Utility Commission of _

Texas (e.g., 16 Texas Administration Code § 25.301). _

d. The decommissioning trust agreement must provide that except _

for ordinary administrative expenses, no disbursements or _

payments from the trusts shall be made by the trustee unless the _

trustee has first given the NRC 30 days prior written notice of _

such disbursement or payment. The decommissioning trust _

agreement shall further contain a provision that no disbursements _

or payments from the trusts shall be made if the trustee receives _

prior written notice of an objection from the Director, Office of _

Nuclear Reactor Regulation. _

Amendment No. 142 _

SOUTH TEXAS LICENSE _

e. The decommissioning trust agreement must provide that the _

agreement cannot be modified in any material respect without _

30 days prior written notification to the Director, Office of Nuclear _

Reactor Regulation. _

(9) License Transfer _

Texas Genco, LP shall take all necessary steps to ensure that the _

decommissioning trust is maintained in accordance with the application _

for approval of the transfer of the Unit 1 license to Texas Genco, LP, the _

requirements of the Order approving the transfer, and the related safety _

evaluation. _

(10) License Transfer _

Texas Genco, LP shall provide the Director, Office of Nuclear Reactor _

Regulation a copy of any application, at the time it is filed, to transfer _

(excluding grants of security interests or liens) from CenterPoint Energy, _

Inc., or its subsidiaries, to a proposed direct or indirect parent, or to any _

other affiliated company, facilities for the production of electric energy _

having a depreciated book value exceeding ten percent (10%) of such _

licensees consolidated net utility plant, as recorded on Texas Genco, _

LPs book of accounts. _

Amendment No. 93, 129, 142 _

SOUTH TEXAS LICENSE _

D. Exemptions The following exemptions are authorized by law and will not endanger life or property or the common defense and security, and certain special circumstances are present. With the granting of these exemptions, the facility will operate, to the extent authorized herein, in conformity with the application, as amended, the provisions of the Act, and the rules and regulations of the Commission.

(1) The facility requires a technical exemption from the requirements of 10 CFR Part 50, Appendix J, Section III.D.2(b)(ii). The justification for this exemption is contained in Section 6.2.6 of Supplement 3 to the Safety Evaluation Report. The staffs environmental assessment was published on July 2, 1987 (52 FR 25094). Therefore, pursuant to 10 CFR 50.12(a)(1), 10 CFR 50.12(a)(2)(ii) and (iii), the South Texas Project Unit 1 is hereby granted an exemption from the quoted requirement and instead, is required to perform the overall air lock leak test at pressure Pa prior to establishing containment integrity if air lock maintenance has been performed that could affect the air lock sealing capability.

(2) The facility requires a schedular exemption from the requirements of General Design Criterion 57, Appendix A to 10 CFR 50. The staff has described in detail in Supplement 4 to the Safety Evaluation Report the technical bases associated with this exemption. The staffs environmental assessment was published on June 18, 1987 (52 FR 23217). Therefore, pursuant to 10 CFR 50.12(a)(1) and 10 CFR 50.12(a)(2)(v) the South Texas Project Unit 1 is hereby granted an exemption from the requirements of GDC-57 applicable to the essential component cooling water (CCW) piping which is also used by the non-essential reactor containment building chilled water system in providing cooling to the Reactor Containment Fan Coolers (RCFC). This exemption will expire at the end of the first refueling outage.

(3) The facility was previously granted exemption from the criticality monitoring requirements of 10 CFR 70.24 (See Materials License No. SNM-1972 dated December 29, 1986 and Section 9.1.2 of SSER No. 3). The South Texas Project Unit 1 is hereby exempted from the criticality monitoring provisions of 10 CFR 70.24 as applied to fuel assemblies held under this license.

(4) The facility has been granted a schedular exemption from Section 50.71(e)(3)(i) of 10 CFR 50 to extend the date for submittal of the updated Final Safety Analysis Report to no later than one year after the date of issuance of a low power license for the South Texas Project, Unit 2. This exemption is effective until August 1990. The staffs environmental assessment was published on December 16, 1987 (52 FR 47805).

Amendment No. 142 _

SOUTH TEXAS LICENSE _

E. Fire Protection STPNOC shall implement and maintain in effect all provisions of the approved fire protection program as described in the Final Safety Analysis Report through Amendment No. 55 and the Fire Hazards Analysis Report through Amendment No. 7, and submittals dated April 29, May 7, 8 and 29, June 11, 25 and 26, 1987, and as approved in the SER (NUREG-0781) dated April 1986 and its Supplements, subject to the following provision:

STPNOC 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.

F. Physical Security STPNOC shall fully implement and maintain in effect all provisions of the physical security, guard training and qualification, and safeguards contingency plans previously approved by the Commission and all amendments and revisions to such plans made pursuant to the authority under 10 CFR 50.90 and 10 CFR 50.54(p).

The plans, which contain Safeguards Information protected under 10 CFR 73.21, are entitled: "South Texas Project Electric Generating Station Physical Security Plan," with revisions/amendments submitted through March 4, 1988; "South Texas Project Electric Generating Station Security Personnel Qualification and Training Plan" with revisions submitted through March 4, 1988, and "South Texas Project Electric Generating Station Safeguards Contingency Plan," with revisions/amendments submitted through July 24, 1987.

G. Not Used H. Financial Protection The Owners 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.

Amendment No. 142 _

SOUTH TEXAS LICENSE _

I. Effective Date and Expiration This license is effective as of the date of issuance and shall expire at midnight on August 20, 2027.

FOR THE NUCLEAR REGULATORY COMMISSION original signed by _

Thomas E. Murley, Director Office of Nuclear Reactor Regulation

Enclosures:

1. Appendix A, Technical Specifications (NUREG-1305)
2. Appendix B, Environmental Protection Plan
3. Appendix C, Antitrust Conditions Date of Issuance: March 22, 1988 Amendment No. 142 _

TEXAS GENCO, LP _

CITY PUBLIC SERVICE BOARD OF SAN ANTONIO CENTRAL POWER AND LIGHT COMPANY CITY OF AUSTIN, TEXAS STP NUCLEAR OPERATING COMPANY DOCKET NO. 50-499 SOUTH TEXAS PROJECT, UNIT 2 FACILITY OPERATING LICENSE License No. NPF-80

1. The Nuclear Regulatory Commission (the Commission or the NRC) has found that:

A. The application for a license filed by STP Nuclear Operating Company _

(STPNOC)*, acting on behalf of itself and for Texas Genco, LP, the City Public _

Service Board of San Antonio (CPS), Central Power and Light Company (CPL),

and City of Austin, Texas (COA) (the "Owners") complies with the standards and requirements of the Atomic Energy Act of 1954, as amended (the Act), and the Commissions regulations set forth in 10 CFR Chapter I, and all required notifications to other agencies or bodies have been duly made; B. Construction of the South Texas Project, Unit 2, (the facility) has been substantially completed in conformity with Construction Permit No. CPPR-129 and the application, as amended, the provisions of the Act, and the regulations of the Commission; C. The facility will operate in conformity with the application, as amended, the provisions of the Act, and the regulations of the Commission (except as exempted from compliance in Section 2.D. below);

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 Commissions regulations set forth in 10 CFR Chapter I (except as exempted from compliance in Section 2.D. below);

  • STPNOC is authorized to act for Texas Genco, LP, the City Public Service Board of San _

Antonio, Central Power and Light Company, and City of Austin, Texas and has exclusive _

responsibility and control over the physical construction, operation, and maintenance of the _

facility. _

Amendment No. 80, 130 _

E. STPNOC is technically qualified to engage in the activities authorized by this _

license in accordance with the Commissions regulations set forth in 10 CFR Chapter I; F. The Owners have satisfied the applicable provisions of 10 CFR Part 140, "Financial Protection Requirements and Indemnity Agreements," of the Commissions regulations; G. The issuance of this 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 and other costs and considering available alternatives, the issuance of this Facility Operating License No. NPF-80, subject to the conditions for protection of the environment set forth in the Environmental Protection Plan attached as Appendix B, is in accordance with 10 CFR Part 51 of the Commissions regulations and all applicable requirements have been satisfied; and I. The receipt, possession, and use of source, byproduct and special nuclear material as authorized by this license will be in accordance with the Commissions regulations in 10 CFR Parts 30, 40 and 70.

2. Based on the foregoing findings, and approval by the Nuclear Regulatory Commission at a meeting on March 28, 1989, the License for Fuel Loading and Low Power Testing, License No. NPF-78 issued on December 16, 1988 is superseded by Facility Operating License NPF-80, hereby issued to STPNOC, Texas Genco, LP, City Public Service _

Board of San Antonio, Central Power and Light Company, and City of Austin, Texas (the licensees) to read as follows:

A. This license applies to the South Texas Project, Unit 2, a pressurized water reactor, and associated equipment (the facility) owned by Texas Genco, LP, City _

Public Service Board of San Antonio, Central Power and Light Company and City of Austin, Texas and operated by STPNOC. The facility is located in Matagorda County, Texas, west of the Colorado River, 8 miles north-northwest of the town of Matagorda and about 89 miles southwest of Houston and is described in the licensees Final Safety Analysis Report, as supplemented and amended, and in the licensees Environmental Report, as supplemented and amended.

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

Amendment No. 80, 130 _

(1) STPNOC pursuant to Section 103 of the Act and 10 CFR Part 50, to possess, use and operate the facility at the designated location in Matagorda County, Texas, in accordance with the procedures and limitations set forth in this license; (2) Texas Genco, LP, the City Public Service Board of San Antonio (CPS), _

Central Power and Light Company (CPL), and the City of Austin, Texas (COA), pursuant to the Act and 10 CFR Part 50, to possess the facility at the designated location in Matagorda County, Texas, in accordance with the procedures and limitations set forth in this license; (3) STPNOC, pursuant to the Act and 10 CFR Part 70, 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; (4) STPNOC, pursuant to the Act and 10 CFR Parts 30, 40 and 70, 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; (5) STPNOC, pursuant to the Act and 10 CFR Parts 30, 40, and 70, 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 (6) STPNOC, pursuant to the Act and 10 CFR Parts 30, 40 and 70, to possess, but not separate, such byproduct and special nuclear materials as may be produced by the operation of the facility authorized herein.

C. This license shall be deemed to contain and is subject to the conditions specified in the Commissions regulations set forth 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 STPNOC is authorized to operate the facility at reactor core power levels not in excess of 3853 megawatts thermal (100% power) (Model

³94 steam generators installed) or 3,800 Mwt thermal (100% power)

(Model E steam generators installed) in accordance with the conditions specified herein.

Amendment No. 127, 130 _

(2) Technical Specifications The Technical Specifications contained in Appendix A, as revised through Amendment No. , and the Environmental Protection Plan contained in Appendix B, are hereby incorporated in the license. STPNOC shall operate the facility in accordance with the Technical Specifications and the Environmental Protection Plan.

(3) Antitrust Conditions Texas Genco, LP, City Public Service Board of San Antonio, Central _

Power and Light Company and City of Austin, Texas (the "Owners") shall comply with the antitrust conditions delineated in Appendix C to this license; Appendix C is hereby incorporated into this license.

STPNOC shall not market or broker power or energy from South Texas Project Unit 2. The Owners are responsible and accountable for the actions of STPNOC to the extent that said actions affect the marketing or brokering of power or energy from South Texas Project Unit 2 and, in any way, contravene the antitrust conditions of this paragraph or Appendix C of this license.

(4) Initial Startup Test Program (Section 14, SR)*

Any changes to the Initial Test Program described in Section 14 of the Final Safety Analysis Report made in accordance with the provisions of 10 CFR 50.59 shall be reported in accordance with 50.59(b) within one month of such change.

(5) License Transfer _

Texas Genco, LP shall provide decommissioning funding assurance, to _

be held in decommissioning trusts for South Texas Project, Unit 2 (Unit 2) _

upon the direct transfer of the Unit 2 license to Texas Genco, LP, in an _

amount equal to or greater than the balance in the Unit 2 _

decommissioning trust immediately prior to the transfer. In addition, _

Texas Genco, LP shall ensure that all contractual arrangements referred _

to in the application for approval of the transfer of the Unit 2 license to _

Texas Genco, LP to obtain necessary decommissioning funds for Unit 2 _

through a non-bypassable charge are executed and will be maintained _

until the decommissioning trusts are fully funded, or shall ensure that _

other mechanisms that provide equivalent assurance of decommissioning _

funding in accordance with the Commissions regulations are maintained. _

(6) License Transfer _

The master decommissioning trust agreement for Unit 2, at the time the _

direct transfer of Unit 2 to Texas Genco, LP is effected and thereafter, is _

subject to the following: _

  • The parenthetical notation following the title of many license conditions denotes the section of the Safety Evaluation Report and/or its supplements wherein the license condition is discussed.

Amendment No. 80, 130 _

a. The decommissioning trust agreement must be in a form _

acceptable to the NRC. _

b. With respect to the decommissioning trust funds, investments in _

the securities or other obligations of CenterPoint Energy, Inc., or _

its affiliates, successors, or assigns, shall be prohibited. Except _

for investments in funds tied to market indices or other non- _

nuclear sector mutual funds, investments in any entity owning one _

or more nuclear power plants are prohibited. _

c. The decommissioning trust agreement must provide that the _

trustee, investment advisor, or anyone else directing the _

investments made in the trusts shall adhere to the standards for _

such investments established by the Public Utility Commission of _

Texas (e.g., 16 Texas Administration Code § 25.301). _

d. The decommissioning trust agreement must provide that except _

for ordinary administrative expenses, no disbursements or _

payments from the trusts shall be made by the trustee unless the _

trustee has first given the NRC 30 days prior written notice of _

such disbursement or payment. The decommissioning trust _

agreement shall further contain a provision that no disbursements _

or payments from the trusts shall be made if the trustee receives _

prior written notice of an objection from the Director, Office of _

Nuclear Reactor Regulation. _

e. The decommissioning trust agreement must provide that the _

agreement cannot be modified in any material respect without _

30 days prior written notification to the Director, Office of Nuclear _

Reactor Regulation. _

(7) License Transfer _

Texas Genco, LP shall take all necessary steps to ensure that the _

decommissioning trust is maintained in accordance with the application _

for approval of the transfer of the Unit 2 license to Texas Genco, LP, the _

requirements of the Order approving the transfer, and the related safety _

evaluation. _

(8) License Transfer _

Texas Genco, LP shall provide the Director, Office of Nuclear Reactor _

Regulation a copy of any application, at the time it is filed, to transfer _

(excluding grants of security interests or liens) from CenterPoint Energy, _

Inc., or its subsidiaries, to a proposed direct or indirect parent, or to any _

other affiliated company, facilities for the production of electric energy _

having a depreciated book value exceeding ten percent (10%) of such _

licensees consolidated net utility plant, as recorded on Texas Genco, _

LPs book of accounts. _

Amendment No. 80, 130 _

D. Exemptions The following exemptions are authorized by law and will not endanger life or property or the common defense and security, and certain special circumstances are present. With the granting of these exemptions, the facility will operate, to the extent authorized herein, in conformity with the application, as amended, the provisions of the Act, and the rules and regulations of the Commission.

(1) The facility requires a technical exemption from the requirements of 10 CFR Part 50, Appendix J, Section III.D.2(b)(ii). The justification for this exemption is contained in Section 6.2.6 of Supplement 3 to the Safety Evaluation Report. The staffs environmental assessment was published on December 16, 1986 (53 FR 50605). Therefore, pursuant to 10 CFR 50.12(a)(1), 10 CFR 50.12(a)(2)(ii) and (iii), the South Texas Project Unit 2 is hereby granted an exemption from the quoted requirement and instead, is required to perform the overall air lock leak test at pressure Pa prior to establishing containment integrity if air lock maintenance has been performed that could affect the air lock sealing capability.

(2) The facility was previously granted exemption from the criticality monitoring requirements of 10 CFR 70.24 (See Materials License No.

SNM-1983 dated August 30, 1988 and Section III.E. of the SER dated August 30, 1988). The South Texas Project Unit 2 is hereby exempted from the criticality monitoring provisions of 10 CFR 70.24 as applied to fuel assemblies held under this license.

(3) The facility requires a temporary exemption from the schedular requirements of the decommissioning planning rule, 10 CFR 50.33(k) and 10 CFR 50.75. The justification for this exemption is contained in Section 22.2 of Supplement 6 to the Safety Evaluation Report. The staffs environmental assessment was published on December 16, 1988 (53 FR 50604). Therefore, pursuant to 10 CFR 50.12(a)(1),

50.12(a)(2)(ii) and 50.12(a)(2)(v), the South Texas Project, Unit 2 is hereby granted a temporary exemption from the schedular requirements of 10 CFR 50.33(k) and 10 CFR 50.75 and is required to submit the decommissioning plan for both South Texas Project, Units 1 and 2 on or before July 26, 1990.

E. Fire Protection STPNOC shall implement and maintain in effect all provisions of the approved fire protection program as described in the Final Safety Analysis Report through Amendment No. 62 and the Fire Hazards Analysis Report through Amendment No. 7, and submittals dated April 29, May 7, 8 and 29, June 11, 25, and 26, 1987, and as approved in the SER (NUREG-0781) dated April 1986 and its Supplements, subject to the following provisions:

STPNOC 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.

Amendment No. 80, 118, 130 _

F. Physical Security STPNOC shall fully implement and maintain in effect all provisions of the physical security, training and qualification, and safeguards contingency plans previously approved by the Commission and all amendments and revisions to such plans made pursuant to the authority under 10 CFR 50.90 and 10 CFR 50.54(p). The plans, which contain Safeguards Information protected under 10 CFR 73.21, are entitled: "South Texas Project Electric Generating Station Physical Security Plan," with revisions/amendments submitted through September 30, 1988; "South Texas Project Electric Generating Station Security Personnel Qualification and Training Plan" with revisions submitted through March 4, 1988, and "South Texas Project Electric Generating Station Safeguards Contingency Plan," with revisions/amendments submitted through July 18, 1988.

G. Not Used H. Financial Protection The Owners 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.

I. Effective date and Expiration This license is effective as of the date of issuance and shall expire at midnight on December 15, 2028.

FOR THE NUCLEAR REGULATORY COMMISSION Original Signed By: James H. Sniezek/for Thomas E. Murley, Director Office of Nuclear Reactor Regulation

Enclosures:

1. Appendix A, Technical Specifications (NUREG-1346)
2. Appendix B, Environmental Protection Plan
3. Appendix C, Antitrust Conditions Date of Issuance: March 28, 1989 Amendment No. 130 _