ML030930668

Nuclear Energy Liability Insurance

ML030930668
Person / Time
Site:	Palo Verde
Issue date:	03/26/2003
From:	Bauer S Arizona Public Service Co
To:	Document Control Desk, Office of Nuclear Reactor Regulation
References
102-04913-SAB/TNW/CJJ
Download: ML030930668 (13)

Text

LAFS Scott A Bauer Department Leader OCFR140.15(e)

Regulatory Affairs Tel 623/393-5978 Mail Station 7636 Palo Verde Nuclear Fax 623/393-5442 P O Box 52034 Generating Station e-mail sbauer@apsc corn Phoenix, AZ 85072-2034 102-04913-SAB/TNW/CJJ March 26, 2003 U. S. Nuclear Regulatory Commission ATTN: Document Control Desk Mail Station P1-37 Washington, DC 20555-0001

Subject:

Palo Verde Nuclear Generating Station (PVNGS)

Units 1, 2, & 3 Docket Nos. STN 50-528/529/530 Nuclear Energy Liability Insurance Pursuant to 10 CFR 140.15(e), the enclosed are certified copies of the following endorsements to the PVNGS Nuclear Energy Liability Insurance Policies:

Policy No. Endorsements No.

N-0107 36 & 37 N-0088 35 & 36 N-0114 31 &32 NF-0266 115,116,117& 118 NW-0625 7 The endorsements are forwarded for your information. No commitments are being made to the NRC by this letter. Should you have any questions, please contact Thomas N.

Weber at (623) 393-5764.

Sincerely, ENCLOSURES SAB/TNW/CJJ/

cc: E. W. Merschoff J. N. Donohew N. L. Salgado Adz0 I

Enclosures Endorsements to the PVNGS Nuclear Energy Liability Insurance Policies

NUCLEAR ENERGY LIABILITY INSURANCE NUCLEAR ENERGY LIABILITY INSURANCE ASSOCIATION ENDORSEMENT TO CERTIFICATE NO. N -0107 Forming Part of Master Policy No. 1 Nuclear Energy Liability Insurance (Secondary Financial Protection)

It is agreed that effective January 1, 2003, Item 4. (a) of the certificate is amended to read as follows:

Item 4. (a) Identification of primary financial protection applicable to the nuclear reactor and limit(s) of liability thereof:

(1) Facility Form Policy:

Nuclear Energy Liability Insurance Association's Policy NF-0266 $300,000,000 (2) Master Worker Policy (Facility Worker Form):

Nuclear Energy Liability Insurance Association's Master Worker Policy NMWP-2 $300,000,000 This is to certify that this is a true copy of the original endorsement having the endorsement number and being made part of the Certificate of Insurance bearing the number designated hereon for insurance coverage under the Nuclear Energy Liability Policy (Secondary Financial Protection). No insurance is afforded hereunder.

John L. Quattrocchi, Senior Vice President, Underwriting American Nuclear Insurers Effective Date of this Endorsement: January 1, 2003 To form a part of Certificate No. N -0107 (12:01 A M Standard Time)

Issued to: Arizona Public Service Company, et al Date of Issue: December 20, 2002 For the subscribing companies By _,eqs L, U I President Endorsement No.: 36 Countersigned by \'S!g~

NE-S-23 (1/1/03) CERTIFIED COPY

NUCLEAR ENERGY LIABILITY INSURANCE NUCLEAR ENERGY LIABILITY INSURANCE ASSOCIATION ANNUAL PREMIUM ENDORSEMENT CALENDAR YEAR 2003

1. ANNUAL PREMIUM: It is agreed that the Annual Premium due the companies for the period designated above is: $8,629.00 THIS IS TO CERTIFY THAT THIS IS A TRUE COPY OF THE ORIGINAL CERTIFICATE, BEARING THE NUMBER DESIGNATED HEREON, FOR INSURANCE COVERAGE UNDER THE MASTER POLICY-NUCLEAR ENERGY LIABILITY INSURANCE (SECONDARY FINANCIAL NOTECTION) NO INSURANCE IS AFFORDED BY THIS COPY.

JOHN L. QUATTROCCHI SENIOR VICE PRESIDENT - UNDERWRITING AMERICAN NUCLEAR INSURERS Effective Date of this Endorsement: January 1, 2003 To form a part of Certificate No. N -0107 (12:01 A.M. Standard Time)

Issued To: Arizona Public Service Company, et al Date of Issue: November 19, 2002 Forthe subscribing companies By / t_ t President Endorsement No: 37 Countersigned by _ _ ' _ _

CERTIFIED COPY

NUCLEAR ENERGY LIABILITY INSURANCE NUCLEAR ENERGY LIABILITY INSURANCE ASSOCIATION ENDORSEMENT TO CERTIFICATE NO. N -0088 Forming Part of Master Policy No. 1 Nuclear Energy Liability Insurance (Secondary Financial Protection)

It is agreed that effective January 1, 2003, Item 4. (a) of the certificate is amended to read as follows:

Item 4. (a) Identification of primary financial protection applicable to the nuclear reactor and limit(s) of liability thereof:

(1) Facility Form Policy:

Nuclear Energy Liability Insurance Association's Policy NF-0266 $300,000,000 (2) Master Worker Policy (Facility Worker Form):

Nuclear Energy Liability Insurance Association's Master Worker Policy NMWP-2 $300,000,000 This is to certify that this is a true copy of the original endorsement having the endorsement number and being made part of the Certificate of Insurance bearing the number designated hereon for insurance coverage under the Nuclear Energy Liability Policy (Secondary Financial Protection). No insurance is afforded hereunder.

John L. Quattrocchi, Senior Vice President, Underwriting American Nuclear Insurers Effective Date of this Endorsement: January 1, 2003 To form a part of Certificate No. N -0088 (12:01 A.M. Standard Time)

Issued to: Arizona Public Service Company, et al Date of Issue: December 20, 2002 For the subscribing companies By PZe4 . t c1v President Endorsement No.: 35 Countersigned by NE-S-23 (1/11/03) CERTIFIED COPY

NUCLEAR ENERGY LIABILITY INSURANCE NUCLEAR ENERGY LIABILITY INSURANCE ASSOCIATION ANNUAL PREMIUM ENDORSEMENT CALENDAR YEAR 2003

1. ANNUAL PREMIUM: It is agreed that the Annual Premium due the companies for the period designated above is: $8,629.00 THIS IS TO CERTIFY THAT THIS IS A TRUE COPY OF THE ORIGINAL CERTIFICATE, BEARING THE NUMBER DESIGNATED HEREON, FOR INSURANCE COVERAGE UNDER THE MASTER POLICY-NUCLEAR ENERGY LIABILITY INSURANCE (SECONDARY FINANCIAL ITECTION). NO INSURANCE IS AFFORDED BY THIS COPY.

JOHN L. QUATTROCCHI SENIOR VICE PRESIDENT - UNDERWRITING AMERICAN NUCLEAR INSURERS Effective Date of this Endorsement: January 1, 2003 To form a part of Certificate No. N -0088 (12:01 A.M. Standard Time)

Issued To: Arizona Public Service Company, et al Date of Issue: November 19, 2002 For the subscribing companies C-)

By 1Iw I 6/ 6 President Endorsement No: 36 Countersigned by \ '  ;

CERTIFIED COPY

NUCLEAR ENERGY LIABILITY INSURANCE NUCLEAR ENERGY LIABILITY INSURANCE ASSOCIATION ENDORSEMENT TO CERTIFICATE NO. N -0114 Forming Part of Master Policy No. 1 Nuclear Energy Liability Insurance (Secondary Financial Protection)

It is agreed that effective January 1, 2003, Item 4. (a) of the certificate is amended to read as follows:

Item 4. (a) Identification of primary financial protection applicable to the nuclear reactor and limit(s) of liability thereof:

(1) Facility Form Policy:

Nuclear Energy Liability Insurance Association's Policy NF-0266 $300,000,000 (2) Master Worker Policy (Facility Worker Form):

Nuclear Energy Liability Insurance Association's Master Worker Policy NMWP-2 $300,000,000 This is to certify that this is a true copy of the original endorsement having the endorsement number and being made part of the Certificate of Insurance bearing the number designated hereon for insurance coverage under the Nuclear Energy Liability Policy (Secondary Financial Protection). No insurance is afforded hereunder.

John L. Quattrocchi, Senior Vice President, Underwriting American Nuclear Insurers Effective Date of this Endorsement: January 1, 2003 To form a part of Certificate No. N -0114 (12:01 A.M. Standard Time)

Issued to: Arizona Public Service Company, et al Date of Issue: December 20, 2002 For the subscribing companies By 'Pep <), J President Endorsement No.: 31 Countersigned by

.t. dA,;2z;J-NIE-S-23 (111/03) CERTIFIED COPY

NUCLEAR ENERGY LIABILITY INSURANCE NUCLEAR ENERGY LIABILITY INSURANCE ASSOCIATION ANNUAL PREMIUM ENDORSEMENT CALENDAR YEAR 2003

1. ANNUAL PREMIUM: It is agreed that the Annual Premium due the companies for the period designated above is: $8,629.00 THIS IS TO CERTIFY THAT THIS IS A TRUE COPY OF THE ORIGINAL CERTIFICATE, BEARING THE NUMBER DESIGNATED HEREON, FOR INSURANCE COVERAGE UNDER THE MASTER POLICY-NUCLEAR ENERGY LIABILITY INSURANCE (SECONDARY FINANCIAL OTECTION). NO INSURANCE IS AFFORDED BY THIS COPY.

JOHN L. QUATTROCCHI SENIOR VICE PRESIDENT - UNDERWRITING AMERICAN NUCLEAR INSURERS Effective Date of this Endorsement: January 1, 2003 To form a part of Certificate No. N -0114 (12:01 A.M. Standard Time)

Issued To: Arizona Public Service Company, et al Date of Issue: November 20, 2002 For the subscribing companies Byl Id o (7 cr President Endorsement No: 32 Countersigned by > '  ;

CERTIFIED COPY

NUCLEAR ENERGY LIABILITY INSURANCE NUCLEAR ENERGY LIABILITY INSURANCE ASSOCIATION AMENDMENT OF CONDITION 4 It is agreed that with respect to bodily injury, property damage, environmental damage or evacuation of the public caused after the effective date of this endorsement by the nuclear energy hazard, the figure "$200,000,000" stated in Condition 4 of this policy is amended to read "$300,000,000".

This is to certify that this is a true copy of the original Endorsement having the endorsement number and being made part of the Nuclear Energy Liability Policy (Facility Form) as designated hereon. No insurance is afforded hereunder.

John L. Quattrocchi Senior Vice President, Underwriting American Nuclear Insurers Effective Date of this Endorsement: January 1, 2003 To form a part of Policy No. NF -0266 (12:01 A.M. Standard Time)

Issued to: Arizona Public Service Company, et al Date of Issue: December 20, 2002 For the subscribing companies RBY -Pe, I) I cf CI a' President Endorsement No.: 115 Countersigned by CERTIFIED COPY

NUCLEAR ENERGY LIABILITY INSURANCE NUCLEAR ENERGY LIABILITY INSURANCE ASSOCIATION Endorsement No.111, entitled "LIMITATION OF COVERAGE FOR TERRORIST ACTS (ONE SHARED INDUSTRY AGGREGATE LIMIT), is deleted and replaced with the following:

LIMITATION OF COVERAGE FOR TERRORIST ACTS (ONE SHARED INDUSTRY AGGREGATE LIMIT)

It is agreed that with respect to bodily injury, property damage, environmental damage or evacuation of the public caused by the nuclear energy hazard and arising out of a terrorist act:

1. the total aggregate liability of the companies shall be $300,000,000 regardless of (i) the number of terrorist acts affecting this or any other nuclear energy liability policy (Facility Form or Supplier's and Transporter's Form) or (ii) the number of nuclear energy liability policies (Facility Form or Supplier's and Transporter's Form) issued by the Nuclear Energy Liability Insurance Association under which coverage may be sought.

2. the limit of liability shown in Item 4 of the policy Declarations or as amended by endorsement to this policy is subject to the industry aggregate limitation described in paragraph 1 above.

3. the companies may, at their option, reinstate the one shared industry aggregate limit of

$300,000,000, provided that any such reinstatement approved by the companies shall not exceed the balance in the Industry Credit Rating Plan reserve fund.

4. the term "terrorist act" as used herein means a violent or otherwise hostile act or an act dangerous to human life, tangible or intangible property or infrastructure by any person or group, whether acting alone or on behalf of any organization or government, which causes damage to property or injury to persons, or represents a threat thereof and appears to be intended to (i) intimidate or coerce a civilian population; or (ii) disrupt any segment of an economy; or (iii) influence the policy of a government by intimidation or coercion; or (iv) affect the conduct of a government by mass destruction, assassination, kidnapping or hostage-taking.

This is to certify that this is a true copy of the original Endorsement having the endorsement number and being made part of the Nuclear Energy Liability Policy (Facility Form) as designated hereon. No insurance is afforded hereunder.

John L Quattrocchi, Senior Vice President, Underwriting American Nuclear Insurers Effective Date of this Endorsement: January 1, 2003 To form a part of Policy No. NF -0266 (12:01 AM.Standard Time)

Issued to: Arizona Public Service Company, et al Date of Issue: December 20, 2002 For the sub cribing compares By ( em ,_vp C/ President Endorsement No.: 116 Countersigned by CERTIFIED COPY

NUCLEAR ENERGY LIABILITY INSURANCE NUCLEAR ENERGY LIABILITY INSURANCE ASSOCIATION INCREASE OF LIMIT OF LIABILITY ENDORSEMENT (After Prior Increase)

It is agreed that:

1. The limit of the companies' liability stated in Item 4 of the declarations as amended by the Increase of Limit of Liability Endorsement(s) listed below is further amended to read $ 300,000,000 ; but in the event that any payments have heretofore been made by the companies for loss or expense covered by the policy, each of those limits of liability including the limit of liability as amended by this endorsement is reduced in accordance with Condition 3 of the policy by the total amount of those payments, except to the extent that any such reduced limit of liability may have been previously restored in accordance with a Restoration of Limit of Liability Endorsement.

2. The increase in the limit of liability provided by this endorsement applies only with respect to obligations assumed or expenses incurred because of bodily injury, property damage, environmental damage or evacuation of the public caused, during the period from the effective date of this endorsement to the date of termination of the policy, by the nuclear energy hazard.

3. The original limit of liability stated in Item 4 of the declarations, the limit(s) of liability stated in the Increase of Limit of Liability Endorsement(s) listed below and the amended limit of liability stated in paragraph I above shall not be cumulative, and each payment made by the companies after the effective date of this endorsement for any loss or expense covered by the policy shall reduce by the amount of such payment each of those limits of liability, regardless of which limit of liability applies with respect to the bodily injury, property damage, environmental damage or evacuation of the public out of which such loss or expense arises.

Previous Increase of Limit of Liability Endorsement(s)

Endorsement No.(s): 9, 23, 47, 92 and 97 This is to certify that this is a true copy of the original Endorsement having the endorsement number and being made part of the Nuclear Energy Liability Policy (Facility Form) as designated hereon. No insurance is afforded hereunder.

John L. Quattrocchi, Senior Vice President, Underwriting, American Nuclear Insurers Effective Date of this Endorsement: January 1, 2003 To form a part of Policy No. NF -0266 (12:01 A.M. Standard Time)

Issued to: Arizona Public Service Company, et al Date of Issue: December 20, 2002 For the subscribing companies By President Endorsement No.: 117 Countersigned by CERTIFIED COPY

NUCLEAR ENERGY LIABILITY INSURANCE NUCLEAR ENERGY LIABILITY INSURANCE ASSOCIATION ADVANCE PREMIUM AND STANDARD PREMIUM ENDORSEMENT CALENDAR YEAR 2003

1. ADVANCE PREMIUM: It is agreed that the Advance Premium due the companies for the period designated above is: $862,580.00

2. STANDARD PREMIUM AND RESERVE PREMIUM: In the absence of a change in the Advance Premium indicated above, it is agreed that, subject to the provisions of the Industry Credit Rating Plan, the Standard Premium is said Advance Premuim and the Reserve Premium is: $661,765.00 This is to certify that this is a true copy of the original Endorsement having the endorsement number and being made part of the Nuclear Energy Liability Policy (Facility Form) as designated

n. No insurance is afforded hereunder.

John L. Quattrocchi, Senior Vice President - Underwriting Amencan Nuclear Insurers Effective Date of this Endorsement: January 1,2003 To form a part of Policy No. NF -0266 (12:01 A.M. Standard Time)

Issued To: Arizona Public Service Company, et al Date of Issue: December 20, 2002 For the subscribing companies By A I tCv.

t President Endorsement No: 118 Countersigned by'e_4r CERTIFIED COPY NE-36

NUCLEAR ENERGY LIABILITY INSURANCE NUCLEAR ENERGY LIABILITY INSURANCE ASSOCIATION ADVANCE PREMIUM AND STANDARD PREMIUM ENDORSEMENT CALENDAR YEAR 2003

1. ADVANCE PREMIUM: It is agreed that the Advance Premium due the companies for the period designated above is: $116,057.00

2. STANDARD PREMIUM AND RESERVE PREMIUM: In the absence of a change in the Advance Premium indicated above, it is agreed that, subject to the provisions of the Industry Credit Rating Plan, the Standard Premium is said Advance Premuim and the Reserve Premium is: $88,875.00 This is to certify that this is a true copy of the onginal Endorsement having the endorsement number and being made part of the Certificate of Insurance bearing the number designated heron for insurance coverage under the Nuclear Energy Liability Policy (Facility Workers Form) No insurance is ffoded hereunder.

John L. Quattrocchi, Senior Vice President - Underwriting American Nuclear Insurers Effective Date of this Endorsement: January 1, 2003 To form a part of Certificate No. NW -0625 (12:01 A.M. Standard Time)

Issued To: Arizona Public Service Company, et al Date of Issue: November 21, 2002 For the subscribing co nies By t ,

President Endorsement No: 7 Countersigned by' '

CERTIFIED COPY