ML110800455

From kanterella
Jump to navigation Jump to search

Issuance of Renewed Facility Operating Licenses for Palo Verde Nuclear Generating Station (TAC Numbers ME0254, ME0255, and ME0256)
ML110800455
Person / Time
Site: Palo Verde  
Issue date: 04/21/2011
From: Lisa Regner
License Renewal Projects Branch 2
To: Edington R
Arizona Public Service Co
Regner, Lisa M. NRR/DLR/RPB2, 415-1906
Shared Package
ML110800448 List:
References
TAC ME0254, TAC ME0255, TAC ME0256
Download: ML110800455 (4)


Text

UNITED STATES NUCLEAR REGULATORY COMMISSION WASHINGTON, D.C. 20555-0001 April 21, 2011 Mr. Randall K. Edington Executive Vice President, Nuclear Mail Station 7602 Arizona Public Service Company P.O. Box 52034 Phoenix, AZ 85072-2034

SUBJECT:

ISSUANCE OF RENEWED FACILITY OPERATING LICENSES FOR PALO VERDE NUCLEAR GENERATING STATION (TAC NOS. ME0254, ME0255, AND ME0256)

Dear Mr. Edington:

The U.S. Nuclear Regulatory Commission (NRC) has issued Renewed Facility Operating License Nos. NPF-41 (Unit 1), NPF-51 (Unit 2), and NPF-74 (Unit 3) for the Palo Verde Nuclear Generating Station (PVNGS). The NRC issued the renewed facility operating licenses based on the staffs review of your application dated December 11, 2008, as supplemented by letters submitted to the NRC through March 17, 2011. The technical specifications for PVNGS were not amended as a result of our review.

Renewed Facility Operating License No. NPF-41 (Unit 1) expires at midnight on June 1, 2045; NPF-51 (Unit 2) expires at midnight on April 24, 2046; and NPF-74 (Unit 3) expires at midnight on November 25, 2047.

The technical basis for issuing the renewed licenses is set forth in NUREG-1961, "Safety Evaluation Report Related to the License Renewal of the Palo Verde Nuclear Generating Station, Units 1, 2, and 3," issued April 2011. The results of the environmental reviews related to the issuance of the renewed licenses appear in NUREG-1437, "Generic Environmental Impact Statement for License Renewal of Nuclear Plants: Supplement 43, Regarding Palo Verde Nuclear Generating Station," issued January 2011.

Enclosures 1, 2, and 3 contain Renewed Facility Operating License Nos. NPF-41, NPF-51, and NPF-74, respectively, each with four attachments (Appendix A, "Technical Specifications;"

Appendix B, "Environmental Protection Plan;" Appendix C, "Antitrust Conditions;" and Appendix D, "Additional Conditions"). is a copy of the related Federal Register notice of issuance of the renewed license.

The NRC has sent the original notice to the Office of the Federal Register for publication.

R. Edington

-2 If you have any questions, please feel free to contact me by telephone at 301-415-1906 or by e-mail at Lisa.Regner@nrc.gov.

Sincerely, l/j,J A CQJ/f/~¥- ~-

Lisa M. Regner, Senior Project Manager Projects Branch 2 Division of License Renewal Office of Nuclear Reactor Regulation Docket Nos. 50-528, 50-529 and 50-530

Enclosures:

As stated cc: Listserv

R. Edington

-2 If you have any questions, please feel free to contact me by telephone at 301-415-1906 or by e-mail at Lisa.Regner@nrc.gov.

Sincerely, IRA!

Lisa M. Regner, Senior Project Manager Projects Branch 2 Division of License Renewal Office of Nuclear Reactor Regulation Docket Nos. 50-528, 50-529 and 50-530

Enclosures:

As stated cc: Listserv DISTRIBUTION:

See next page ADAMS Accession Numbers:

ML110800448 (Package), ML110800455 (Letter), ML110800461 (Encl 1), ML110871955 (Unit 1 Appendices),

ML110800465 (Encl 2), ML11098AOOO (Unit 2 Appendices), ML110800473 (Encl 3), ML11098A001 (Unit 3 Appendices), ML110800478 (FRN)

"concurrence via e-mail OFFICE LA: DLR*

PM:DLR/RPB2 Tech Editor*

PM:DORL BC:DORL NAME SFigueroa LRegner JDougherty LGibson MMarkley (BSingal for)

DATE 03/2412011 03/28/2011 04/04/2011 03/2812011 03/29/2011 OFFICE BC:DLR/RPB2 D:DLR OGC (NLO)

D:NRR PM:DLR/RPB2 NAME DWrona BHolian BMizuno ELeeds LRegner DATE 04/13/2011 04/14/2011 03/30/2011 04/21/2011 04/21/2011 OFFICIAL RECORD COPY

Letter to Randall K. Edington from Usa M. Regner dated April 21,2011

SUBJECT:

ISSUANCE OF RENEWED FACILITY OPERATING LICENSES FOR PALO VERDE NUCLEAR GENERATING STATION (TAC NOS. ME0254, ME0255, AND ME0256)

DISTRIBUTION:

HARD COPY:

DLR R/F E-MAIL:

PUBLIC RidsNrrDlr Resource RidsNrrDlrRpb1 Resource RidsNrrDlrRpb2 Resource RidsNrrDlrRarb Resource RidsNrrDlrRasb Resource RidsNrrDlrRapb Resource RidsNrrDIrRerb Resource RidsNrrDlrRpob Resource RidsNrrDciCvib Resource RidsNrrDciCpnb Resource RidsNrrDraAfpb Resource RidsNrrDeEmcb Resource RidsNrrDeEeeb Resource RidsNrrDorlLpl4 Resource RidsNrrDssSrxb Resource RidsNrrDssSbpb Resource RidsNrrDssScvb Resource RidsOgcMailCenter Resource RidsNrrOd Resource L. Regner D. Drucker B. Mizuno M. Brown, RIV G. Pick I. Couret

ENCLOSURE 1 RENEWED OPERATING LICENSE NUMBER NPF-41 ADAMS ACCESSION NO. ML110800461

ARIZONA PUBLIC SERVICE COMPANY SALT RIVER PROJECT AGRICULTURAL IMPROVEMENT AND POWER DISTRICT El PASO ELECTRIC COMPANY SOUTHERN CALIFORNIA EDISON COMPANY PUBLIC SERVICE COMPANY OF NEW MEXICO lOS ANGELES DEPARTMENT OF WATER AND POWER SOUTHERN CALIFORNIA PUBLIC POWER AUTHORITY DOCKET NO. STN 50-528 PALO VERDE NUCLEAR GENERATING STATION, UNIT 1 RENEWED FACILITY OPERATING LICENSE Renewed License No. NPF-41

1.

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

A.

The application to renew Facility Operating License No. NPF-41 filed by Arizona Public Service Company, on behalf of itself and the Salt River Project Agricultural Improvement and Power District, EI Paso Electric Company, Southern California Edison Company, Public Service Company of New Mexico, los Angeles Department of Water and Power, and Southern California Public Power Authority (licensees), complies with the standards and requirements of the Atomic Energy Act of 1954, as amended, and the Commission's 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 Palo Verde Nuclear Generating Station, Unit 1 (facility) has been substantially completed in conformity with Construction Permit No. CPPR-141 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);

Renewed Facility Operating License No. NPF-41

- 2 D.

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 (except as exempted from compliance in Section 2.0 below);

E.

Arizona Public Service Company' is technically 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; F.

The licensees have 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 renewed operating 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 after considering available alternatives, the issuance of Renewed Facility Operating License No. NPF-41, 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 Commission's regulations and all applicable requirements have been satiSfied; I.

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; and J.

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) during the period of extended operation; 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.

  • Arizona Public Service Company is authorized to act as agent for Salt River Project Agricultural Improvement and Power District, EI Paso Electric Company, Southern California Edison Company, Public Service Company of New Mexico, Los Angeles Department of Water and Power, and Southern California Public Power Authority and has exclusive responsibility and control over the physical construction, operation and maintenance of the facility.

Renewed Facility Operating License No. NPF-41

- 3

2.

The license for fuel loading and low power testing, License No. NPF-34, issued in December 1984, was superseded by full power Operating License No. NPF-41 issued in June 1985. Renewed Facility Operating License No. NPF-41 is hereby issued to the Arizona Public Service Company, Salt River Project Agricultural Improvement and Power District, EI Paso Electric Company, Southern California Edison Company, Public Service Company of New Mexico, Los Angeles Department of Water and Power, and Southern California Public Power Authority (licensees) to read as follows:

A.

This renewed operating license applies to the Palo Verde Nuclear Generating Station, Unit 1, a pressurized water reactor and associated equipment (facility) owned by the licensees. The facility is located on the licensees' site in Maricopa County, Arizona and is described in the licensees' Final Safety Analysis Report, as supplemented and amended; in the related CESSAR Final Safety Analysis Report, as supplemented and amended through Amendment NO.8 and referenced in the licensees' Updated Final Safety Analysis Report; and in their Environmental Report, as supplemented and amended through Supplement NO.4.

B.

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

(1)

Pursuant to Section 103 of the Act and 10 CFR Part 50, Arizona Public Service Company, Salt River Project Agricultural Improvement and Power District, EI Paso Electric Company, Southern California Edison Company, Public Service Company of New Mexico, Los Angeles Department of Water and Power, and Southern California Public Power Authority to possess, and Arizona Public Service Company (APS) to use and operate the facility at the designated location in Maricopa County, Arizona, in accordance with the procedures and limitations set forth in this renewed operating license; (2)

Pursuant to the Act and 10 CFR Part 70, APS 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 licensees' Final Safety Analysis Report, as supplemented and amended and the CESSAR Final Safety Analysis Report as supplemented and amended through Amendment NO.8 and referenced in the licensees' Updated Final Safety Analysis Report; (3)

Pursuant to the Act and 10 CFR Parts 30, 40 and 70, APS 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 Part 30,40 and 70, APS to receive, possess and use in amounts as required any byproduct, source or special Renewed Facility Operating License No. NPF-41

- 4 nuclear material without restriction to chemical or physical form, for sample analysis or instrument calibration or associated with radioactive apparatus or components; and (5)

Pursuant to the Act and 10 CFR Parts 30, 40, and 70, APS to possess, but not separate, such byproduct and special nuclear materials as may be produced by the operation of the facility.

(6)

(a)

Pursuant to an Order of the Nuclear Regulatory Commission dated December 12, 1985, the Public Service Company of New Mexico (PNM) was authorized to transfer a portion of its ownership share in Palo Verde, Unit 1 to certain institutional investors on December 31, 1985, and at the same time has leased back from such purchasers the same interest in the Palo Verde, Unit 1 facility. The term of the lease is to January 15, 2015, subject to a right of renewal. Additional sale and leaseback transactions (for a term expiring on January 15,2015) of all or a portion of PNM's remaining ownership share in Palo Verde Unit 1 are hereby authorized until June 30,1987. Any such sale and leaseback transaction is subject to the representations and conditions set forth in the aforementioned applications of October 19,1985, February 5,1986, October 16, 1986 and November 26, 1986, and the Commission's Order of December 12, 1985, consenting to such transactions. Specifically, the lessor and anyone else who may acquire an interest under this transaction are prohibited from exercising directly or indirectly any control over the licensees of the Palo Verde Nuclear Generating Station, Unit 1. For purposes of this condition, the limitations in 10 CFR 50.81, "Creditor Regulations," as now in effect and as they may be subsequently amended, are fully applicable to the lessor and any successor in interest to that lessor as long as the renewed license for Palo Verde, Unit 1 remains in effect; this financial transaction shall have no effect on the renewed operating license for the Palo Verde nuclear facility throughout the term of the renewed operating license.

(b)

Further, the licensees are also required to notify the NRC in writing prior to any change in: (i) the terms or conditions of any lease agreements executed as part of this transaction; (ii) the ANPP Participation Agreement, (iii) the existing property insurance coverage for the Palo Verde nuclear facility, Unit 1 as specified in license counsel's letter of November 26, 1985, and (iv) any action by the lessor or others that may have an adverse effect on the safe 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 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:

Renewed Facility Operating License No. NPF-41

- 5 (1)

Maximum Power Level Arizona Public Service Company (APS) is authorized to operate the facility at reactor core power levels not in excess of 3990 megawatts thermal (100% power), in accordance with the conditions specified herein.

(2)

Technical Specifications and Environmental Protection Plan The Technical Specifications contained in Appendix A, as revised through Amendment No. 184, and the Environmental Protection Plan contained in Appendix B, are hereby incorporated into this renewed operating license.

APS shall operate the facility in accordance with the Technical Specifications and the Environmental Protection Plan, except where otherwise stated in specific license conditions.

(3)

Antitrust Conditions This renewed operating license is subject to the antitrust conditions delineated in Appendix C to this renewed license.

(4)

Operating Staff Experience Requirements Deleted (5)

Post-Fuel-Loading Initial Test Program (Section 14, SER and SSER 2>*

Deleted (6)

Environmental Qualification Deleted (7)

Fire Protection Program APS shall implement and maintain in effect all provisions of the approved fire protection program as described in the Final Safety Analysis Report for the facility, as supplemented and amended, and as approved in the SER through Supplement 11, subject to the following provision:

APS 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.

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.

Renewed Facility Operating License No. NPF-41

- 6 (8)

Emergency Preparedness Deleted (9)

Results of Piping Vibration Test Program (Section 3.9.2, SER)

Deleted (10)

Response to Salem ATWS Event (Section 7.2, SSER 7, and Section 1.11, SSER 8)

Deleted (11)

Supplement No.1 to NUREG-0737 Requirements Deleted (12)

Radiochemistry Laboratory (Section 7.3.1.5(3), Emergency Plan)

Deleted (13)

RCP Shaft Vibration Monitoring Program (Section 5.4.1, SSER 12)

Deleted (14)

Additional Conditions The Additional Conditions contained in Appendix D, as revised through Amendment No. 171, are hereby incorporated into this renewed operating license. The licensee shall operate the facility in accordance with the Additional Conditions.

(15)

Mitigation Strategy License Condition APS shall develop and maintain strategies for addressing large fires and explosions and that includes 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.

Renewed Facility Operating License No. NPF-41

- 7

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.

(16)

License Renewal License Conditions (a)

The information in the UFSAR supplement, as revised, submitted pursuant to 10 CFR 54.21(d), shall be incorporated into the next UFSAR no later than the next scheduled update required by 10 CFR 50.71(e), following the issuance of this renewed operating license. Until this update is complete, the licensee may make changes to the information in the supplement without Commission approval provided that the licensee evaluates such changes pursuant to the criteria in 10 CFR 50.59 and otherwise complies with the requirements of that section.

(b)

The UFSAR supplement, as revised, submitted pursuant to 10 CFR 54.21(d), describes certain future activities to be completed prior to and/or during the period of extended operation.

The licensee shall complete these activities in accordance with Appendix A of NUREG-1961, "Safety Evaluation Report Related to the License Renewal of Palo Verde Nuclear Generating Station, Units 1, 2, and 3," issued April 2011. The licensee shall notify the NRC in writing when activities to be completed prior to the period of extended operation are complete and can be verified by NRC inspection.

(c)

All capsules in the reactor vessel that are removed and tested must meet the test procedures and reporting requirements of American Society for Testing and Materials (ASTM) E 185-82 to the extent practicable for the configuration of the specimens in the capsule. The NRC must approve any changes to the capsule withdrawal schedule, including spare capsules, before implementation. All capsules placed in storage must be maintained for future insertion. The NRC must approve any changes to storage requirements.

D.

The facility requires an exemption from Paragraph III.D.2(b)(ii) of Appendix J to 10 CFR Part 50 (Section 6.2.6, SSER 7). This exemption is authorized by law Renewed Facility Operating License No. NPF-41

- 8 and will not endanger life or property or the common defense and security and is otherwise in the public interest. This exemption is, therefore, hereby granted pursuant to 10 CFR 50.12. With the granting of this exemption, 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.

E.

The licensees shall fully implement and maintain in effect all provisions of the Commission-approved physical security, 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: "Palo Verde Nuclear Station Security Plan, Training and Qualification Plan, Safeguards Contingency Plan and Independent Spent Fuel Storage Installation Security Program Revision 3," submitted by letter dated May 16, 2006.

F.

Deleted G.

The licensees 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; and H.

This renewed operating license is effective as of the date of issuance and shall expire at midnight on June 1, 2045.

FOR THE NUCLEAR REGULATORY COMMISSION

Z~

Office of Nuclear Reactor Regulation Attachments:

1. Attachment 1 - [Requirements for Initial Mode 1 Entry] - Deleted
2. Attachment 2 - [Operating Staff Experience Requirements] - Deleted
3. Attachment 3 - [Emergency Response Capabilities] - Deleted
4. Appendix A - Technical Specifications
5. Appendix B - Environmental Protection Plan
6. Appendix C - Antitrust Conditions
7. Appendix D - Additional Conditions Date of Issuance: April 21, 2011 Renewed Facility Operating License No. NPF-41

Please refer to ADAMS accession number ML110871955 for Appendices A, B, C, and D for Palo Verde Nuclear Generating Station, Unit 1.

The Technical Specifications. did not change as a result of the renewal of the Palo Verde facility operating licenses.

ENCLOSURE 2 RENEWED OPERATING LICENSE NUMBER NPF-51 ADAMS ACCESSION NO. ML110800465

ARIZONA PUBLIC SERVICE COMPANY SALT RIVER PROJECT AGRICULTURAL IMPROVEMENT AND POWER DISTRICT EL PASO ELECTRIC COMPANY SOUTHERN CALIFORNIA EDISON COMPANY PUBLIC SERVICE COMPANY OF NEW MEXICO LOS ANGELES DEPARTMENT OF WATER AND POWER SOUTHERN CALIFORNIA PUBLIC POWER AUTHORITY DOCKET NO. STN 50-529 PALO VERDE NUCLEAR GENERATING STATION, UNIT 2 RENEWED FACILITY OPERATING LICENSE Renewed Facility Operating License No. NPF-51

1.

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

A.

The application to renew Facility Operating License No. NPF-51 filed by Arizona Public Service Company, on behalf of itself and the Salt River Project Agricultural Improvement and Power District, EI Paso Electric Company, Southern California Edison Company, Public Service Company of New Mexico, Los Angeles Department of Water and Power, and Southern California Public Power Authority (licensees), complies with the standards and requirements of the Atomic Energy Act of 1954, as amended, and the Commission's 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 Palo Verde Nuclear Generating Station, Unit 2 (facility) has been substantially completed in conformity with Construction Permit No. CPPR 142 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);

Renewed Facility Operating License No. NPF-51

- 2 O.

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 (except as exempted from compliance in Section 2.0 below);

E.

Arizona Public Service Company* is technically 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; F.

The licensees have 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 renewed operating 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 after considering available alternatives, the issuance of Renewed Facility Operating License No. NPF-51, 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 Commission's regulations and all applicable requirements have been satisfied; I.

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; and J.

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) during the period of extended operation; 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 the 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 license basis in order to comply with 10 CFR 54.29(a) are in accordance with the Act and the Commission's regulations.

  • Arizona Public Service Company is authorized to act as agent for Salt River Project Agricultural Improvement and Power District, EI Paso Electric Company, Southern California Edison Company, Public Service Company of New Mexico, Los Angeles Department of Water and Power, and Southern California Public Power Authority and has exclusive responsibility and control over the physical construction, operation and maintenance of the facility.

Renewed Facility Operating License No. NPF-51

- 3

2.

The license for fuel loading and low power testing, License No. NPF-46, issued in December 1985, was superseded by full power Operating License No. NPF-51 issued in April 1986. Renewed Facility Operating License No. NPF-51 is hereby issued to the Arizona Public Service Company, Salt River Project Agricultural Improvement and Power District, EI Paso Electric Company, Southern California Edison Company, Public Service Company of New Mexico, Los Angeles Department of Water and Power. and Southern California Public Power Authority (licensees) to read as follows:

A.

This renewed operating license applies to the Palo Verde Nuclear Generating Station, Unit 2, a pressurized water reactor and associated equipment (facility) owned by the licensees. The facility is located on the licensees' site in Maricopa County, Arizona and is described in the licensees' Final Safety Analysis Report, as supplemented and amended; in the related CESSAR Final Safety Analysis Report, as supplemented and amended through Amendment NO.8 and referenced in the licensees' updated Final Safety Analysis Report; and in their Environmental Report, as supplemented and amended.

B.

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

(1)

Pursuant to Section 103 of the Act and 10 CFR Part 50, Arizona Public Service Company, Salt River Project Agricultural Improvement and Power District, EI Paso Electric Company, Southern California Edison Company, Public Service Company of New Mexico, Los Angeles Department of Water and Power, and Southern California Public Power Authority to possess, and Arizona Public Service Company (APS) to use and operate the facility at the designated location in Maricopa County, Arizona, in accordance with the procedures and limitations set forth in this renewed operating license; (2)

Pursuant to the Act and 10 CFR Part 70, APS 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 licensees' Final Safety Analysis Report. as supplemented and amended, and the CESSAR Final Safety Analysis Report as supplemented and amended through Amendment NO.8 and referenced in the licensees' updated Final Safety Analysis Report; (3)

Pursuant to the Act and 10 CFR Parts 30,40 and 70, APS 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 Part 30,40 and 70, APS to receive, possess and use in amounts as required any byproduct, source or special nuclear material without restriction to chemical or physical form, for Renewed Facility Operating License No. NPF-51

- 4 sample analysis or instrument calibration or associated with radioactive apparatus or components; and (5)

Pursuant to the Act and 10 CFR Parts 30, 40, and 70, APS to possess, but not separate, such byproduct and special nuclear materials as may be produced by the operation of the facility.

(6)

(a)

Public Service Company of New Mexico (PNM) is authorized to transfer all or a portion of its 10.2% ownership share in Palo Verde, Unit 2 and a proportionate share of a third of PNM's interest in the Palo Verde common facilities to certain equity investors identified in its submissions of August 6 and November 26, 1986, and at the same time to lease back from such purchasers such interest sold in the Palo Verde, Unit 2 facility. The term of the lease is for approximately 29-Y2 years subject to a right of renewal. Additional sale and leaseback transactions of all or a portion of PNM's remaining ownership share of Palo Verde, Unit 2 are hereby authorized until June 30, 1987. Any such sale and leaseback transaction is subject to the representations and conditions set forth in the aforementioned application of February 14, 1986, and the subsequent submittals dated April 22, June 10, July 29, July 30, August 6, and August 7, October 16 and November 26, 1986, as well as the letters of the Director of the Office of Nuclear Reactor Regulation dated August 12 and December 11, 1986, consenting to such transactions. Specifically, the lessor and anyone else who may acquire an interest under this transaction are prohibited from exercising directly or indirectly any control over the licensees of the Palo Verde Nuclear Generating Station, Unit 2. For purposes of this condition the limitations in 10 CFR 50.81, "Creditor Regulations," as now in effect and as they may be subsequently amended, are fully applicable to the lessor and any successor in interest to that lessor as long as the renewed license for Palo Verde, Unit 2 remains in effect; this financial transaction shall have no effect on the renewed operating license for the Palo Verde nuclear facility throughout the term of the renewed operating license.

(b)

Further, the licensees are also required to notify the NRC in writing prior to any change in: (i) the terms or conditions of any lease agreements executed as part of this transaction; (ii) the ANPP Participation Agreement, (iii) the existing property insurance coverage for the Palo Verde nuclear facility, Unit 2 as specified in licensee counsel's letter of November 26, 1985, and (iv) and action by the lessor or others that may have an adverse effect on the safe operation of the facility.

Renewed Facility Operating License No. NPF-51

- 5 (7)

(a)

Deleted (b)

Deleted (8) (a)

Arizona Public Service Company is authorized to transfer all or a portion of its 29.1 % ownership share in Palo Verde, Unit 2 to certain equity investors identified in its submissions of August 6, August 8 and December 5, 1986, and at the same time to lease back from such purchasers such interest sold in the Palo Verde, Unit 2 facility.

The term of the lease is for approximately 29-% years subject to a right of renewal. Additional sale and leaseback transactions of all or a portion of APS's remaining ownership share in Palo Verde, Unit 2 are hereby authorized until June 3D, 1987. Any such sale and lease back transaction is subject to the representations and conditions set forth in the aforementioned application of May 2, 1986, and the subsequent submittals dated July 3D, August 2, August 6, August 7, August 8, August 13, October 16 and December 5, 1986, as well as the letters of the Director of the Office of Nuclear Reactor Regulation dated August 15, and December 11, 1986, consenting to such transactions. Specifically, the lessor and anyone else who may acquire an interest under this transaction are prohibited from exercising directly or indirectly any control over the licensees of the Palo Verde Nuclear Generating Station, Unit 2. For purposes of this condition the limitations in 10 CFR 50.81, "Creditor Regulations," as now in effect and as they may be subsequently amended, are fully applicable to the lessor and any successor in interest to the lessor as long as the license for Palo Verde, Unit 2 remains in effect; this financial transaction shall have no effect on the renewed operating license for the Palo Verde nuclear facility throughout the term of the renewed operating license.

(b)

Further, the licensees are also required to notify the NRC in writing prior to any change in: (i) the terms or conditions of any lease agreements executed as part of this transaction; (ii) the ANPP Participation Agreement, (iii) the existing property insurance coverage for the Palo Verde nuclear facility, Unit 2 as specified in licensee counsel's letter of November 26, 1985, and (iv) any action by the lessor or others that may have an adverse effect on the safe 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 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:

Renewed Facility Operating License No. NPF-51

- 6 (1)

Maximum Power Level Arizona Public Service Company (APS) is authorized to operate the facility at reactor core power levels not in excess of 3990 megawatts thermal (100% power) in accordance with the conditions specified herein.

(2)

Technical Specifications and Environmental Protection Plan The Technical Specifications contained in Appendix A, as revised through Amendment No. 184, and the Environmental Protection Plan contained in Appendix B, are hereby incorporated into this renewed operating license.

APS shall operate the facility in accordance with the Technical Specifications and the Environmental Protection Plan, except where otherwise stated in specific license conditions.

(3)

Antitrust Conditions This renewed operating license is subject to the antitrust conditions delineated in Appendix C to this renewed operating license.

(4)

Operating Staff Experience Requirements (Section 13.1.2, SSER 9)'

Deleted (5)

Initial Test Program (Section 14, SER and SSER 2)

Deleted (6)

Fire Protection Program APS shall implement and maintain in effect all provisions of the approved fire protection program as described in the Final Safety Analysis Report for the facility, as supplemented and amended, and as approved in the SER through Supplement 11, subject to the following provision:

APS 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.

(7)

Inservice Inspection Program (Sections 5.2.4 and 6.6, SER and SSER 9)

Deleted 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.

Renewed Facility Operating License No. NPF-51

- 7 (8)

Supplement No. 1 to NUREG-0737 Requirements Deleted (9)

Additional Conditions The Additional Conditions contained in Appendix D, as revised through Amendment No. 171, are hereby incorporated into this renewed operating license. The licensee shall operate the facility in accordance with the Additional Conditions.

(10)

Mitigation Strategy License Condition APS shall 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.

Renewed Facility Operating License No. NPF-S1

-8 (11)

License Renewal License Conditions (a)

The information in the UFSAR supplement, as revised, submitted pursuant to 10 CFR 54.21(d), shall be incorporated into the next UFSAR no later than the next scheduled update required by 10 CFR 50.71 (e), following the issuance of this renewed operating license. Until this update is complete, the licensee may make changes to the information in the supplement without Commission approval provided that the licensee evaluates such changes pursuant to the criteria in 10 CFR 50.59 and otherwise complies with the requirements of that section.

(b)

The LlFSAR supplement, as revised, submitted pursuant to 10 CFR 54.21(d), describes certain future activities to be completed prior to and/or during the period of extended operation.

The licensee shall complete these activities in accordance with Appendix A of NUREG-1961, "Safety Evaluation Report Related to the License Renewal of Palo Verde Nuclear Generating Station, Units 1,2, and 3," issued April 2011. The licensee shall notify the NRC in writing when activities to be completed prior to the period of extended operation are complete and can be verified by NRC inspection.

(c)

All capsules in the reactor vessel that are removed and tested must meet the test procedures and reporting requirements of American Society for Testing and Materials (ASTM) E 185-82 to the extent practicable for the configuration of the specimens in the capsule. The NRC must approve any changes to the capsule withdrawal schedule, including spare capsules, prior to implementation. All capsules placed in storage must be maintained for future insertion. The NRC must approve any changes to storage requirements.

D.

(1 )

APS has previously been granted an exemption from Paragraph III.D.2(b)(ii) of Appendix J to 10 CFR Part 50. This exemption was previously granted in Facility Operating License No.

NPF-46 pursuant to 10 CFR 50.12.

(2)

Deleted With the granting of this exemption, 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.

Renewed Facility Operating License No. NPF-51

- 9 E.

The licensees shall fully implement and maintain in effect all provisions of the Commission-approved physical security, 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: "Palo Verde Nuclear Station Security Plan, Training and Qualification Plan, Safeguards Contingency Plan and Independent Spent Fuel Storage Installation Security Program Revision 3,"

submitted by letter dated May 16, 2006.

F.

Deleted G.

The licensees 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; and H.

This renewed operating license is effective as of the date of issuance and shall expire at midnight on April 24, 2046.

FOR THE NUCLEAR REGULATORY COMMISSION

~L~

Office of Nuclear Reactor Regulation Attachments:

1. [Requirements for Initial Mode 1 Entry] - Deleted
2. [Schedule for NUREG-0737, Sup. 1, Requirement (SPDS)] - Deleted
3. Appendix A - Technical Specifications
4. Appendix B - Environmental Protection Plan
5. Appendix C - Antitrust Conditions
6. Appendix D - Additional Conditions Date of Issuance: April 21, 2011 Renewed Facility Operating License No. NPF-51

Appendix A Technical Specifications Palo Verde, Unit 2, uses the same Appendix A as Palo Verde, Unit 1. Please refer to Palo Verde, Unit 1, for Appendix A (ML110871955).

Appendix B: Environmental Protection Plan Palo Verde, Unit 2, uses the same Appendix B as Palo Verde, Unit 1. Please refer to Palo Verde, Unit 1, for Appendix B (ML110871955).

00 *NOTREMOVf tiCBNiE AUTHORlrr* fiLE COP" APRIL 1986 APPENDIX C ANTITRUST CONDITIONS LICENSE NO.

NPF~51 Arizona Public Service Company and the Salt River Project Agricultural Improvement and Power District shall comply with the following antitrust conditions:

1.

In connection with the antitrust conditions, the following definitions are used herein:

A.

"Bulk Power" means the electric power, and any attendant energy, supplied or made available at transmission or subtransmission voltage by one entity to another.

B.

IIEntity" means a person, private or public corporation, a municipality, a cooperative, an association, a joint stock association or business trust owning, operating or proposing in good faith to own or operate equipment or facilities for the generation, transmission or distribution of electricity to or for the public as a utility.

C.

"Joint Applicant(s)" means the Arizona Public Service Company and the Salt River Project Agricultural Improvement and Power District.

2.

A.

Each Joint Applicant will transmit Bulk Power over its transmission system, between or among two or more Entities with which it is interconnected, or will be interconnected in the future, without restrictions on use or resale of the power so transmitted, provided that such services can reasonably be accommodated from a technical standpoint without impairing each Joint Applicant's reliability or its own use of its facilities.

B.

Each Joint Applicant is obligated under this condition to transmit Bulk Power on the terms stated above, and in connection with each joint applicant's plan to construct new transmission facilities for its own use, to include in its planning and construction program sufficient transmission capacity for such Bulk Power transactions, provided that such applicanrhas received sufficient advance notice as may be necessary from a technical standpoint to accommodate the requirements of any requesting entity, and further provided that such entity(ies) are obligated as may be agreed (i) to share the capital, operating and maintenance costs

'of such new transmission facilities to the extent that additional costs burdens would be imposed on such Joint Applicant or (ii) to compensate the Joint Applicant fully for the use of its system.

- 2

3.

The foregoing shall be implemented in a manner consistent with the provisions of the Federal Power Act as applicable and all rates, charges or practices in connection herewith are to be subject to the approval of regulatory agencies having jurisdiction over them.

I

Appendix 0: Additional Conditions Palo Verde, Unit 2, uses the same Appendix 0 as Palo Verde, Unit 1. Please refer to Palo Verde. Unit 1, for Appendix 0 (ML110871955).

ENCLOSURE 3 RENEWED OPERATING LICENSE NUMBER NPF-74 ADAMS ACCESSION NO. ML110800473 Renewed Facility Operating License No. NPF-74

ARIZONA PUBLIC SERVICE COMPANY SALT RIVER PROJECT AGRICULTURAL IMPROVEMENT AND POWER DISTRICT EL PASO ELECTRIC COMPANY SOUTHERN CALIFORNIA EDISON COMPANY PUBLIC SERVICE COMPANY OF NEW MEXICO LOS ANGELES DEPARTMENT OF WATER AND POWER SOUTHERN CALIFORNIA PUBLIC POWER AUTHORITY DOCKET NO. STN 50-530 PALO VERDE NUCLEAR GENERATING STATION. UNIT 3 RENEWED FACILITY OPERATING LICENSE Renewed Facility Operating License No. NPF-74

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

A.

The application to renew Facility Operating License No. NPF-74 filed by Arizona Public Service Company on behalf of itself and the Salt River Project Agricultural Improvement and Power District, EI Paso Electric Company, Southern California Edison Company, Public Service Company of New Mexico, Los Angeles Department of Water and Power, and Southern California Public Power Authority (licensees) complies with the standards and requirements of the Atomic Energy Act of 1954, as amended, and the Commission's 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 Palo Verde Nuclear Generating Station, Unit 3 (facility) has been substantially completed in conformity with Construction Permit No. CPPR 143 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);

Renewed Facility Operating License No. NPF-74

- 2 D.

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 Oi) that such activities will be conducted in compliance with the Commission's regulations set forth in 10 CFR Chapter I (except as exempted from compliance in Section 2.0 below);

E.

Arizona Public Service Company' is technically 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; F.

The licensees have 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 renewed operating 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 after considering available alternatives, the issuance of Renewed Facility Operating license No. NPF-74, 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 Commission's regulations and all applicable requirements have been satisfied; I.

The receipt, possession, and use of source, byproduct, and special nuclear material as authorized by this renewed operating license wi" be in accordance with the Commission's regulations in 10 CFR Parts 30, 40, and 70; and J.

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) during the period of extended operation; 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 the 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 license basis in order

  • Arizona Public Service Company is authorized to act as agent for Salt River Project Agricultural Improvement and Power District, EI Paso Electric Company, Southern California Edison Company, Public Service Company of New Mexico, Los Angeles Department of Water and Power, and Southern California Public Power Authority, and has exclusive responsibility and control over the physical construction, operation, and maintenance of the facility.

Renewed Facility Operating License No. NPF-74

- 3 to comply with 10 CFR 54.29(a) are in accordance with the Act and the Commission's regulations.

2.

The license for fuel loading and low power testing, License No. NPF-65, issued in March 1987, was superseded by full power Operating License No. NPF-74 issued in November 1987. Renewed Facility Operating License No. NPF-74 is hereby issued to the Arizona Public Service Company, Salt River Project Agricultural Improvement and Power District, EI Paso Electric Company, Southern California Edison Company, Public Service Company of New Mexico, Los Angeles Department of Water and Power, and Southern California Public Power Authority (licensees) to read as follows:

A.

This renewed operating license applies to the Palo Verde Nuclear Generating Station, Unit 3, a pressurized water reactor and associated equipment (facility) owned by the licensees. The facility is located on the licensees' site in Maricopa County, Arizona and is described in the licensees' Final Safety Analysis Report, as supplemented and amended; in the related CESSAR Final Safety Analysis Report, as supplemented and amended through Amendment No.8 and referenced in the licensees' Updated Final Safety Analysis Report; and in their Environmental Report, as supplemented and amended.

B.

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

(1)

Pursuant to Section 103 of the Act and 10 CFR Part 50, Arizona Public Service Company, Salt River Project Agricultural Improvement and Power District, EI Paso Electric Company, Southern California Edison Company, Public Service Company of New Mexico, Los Angeles Department of Water and Power, and Southern California Public Power Authority to possess, and Arizona Public Service Company (APS) to use and operate the facility at the designated location in Maricopa County, Arizona, in accordance with the procedures and limitations set forth in this renewed operating license; (2)

Pursuant to the Act and 10 CFR Part 70, APS 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 licensees' Final Safety Analysis Report, as supplemented and amended, and the CESSAR Final Safety Analysis Report as supplemented and amended through Amendment NO.8 and referenced in the licensees' Updated Final Safety Analysis Report; (3)

Pursuant to the Act and 10 CFR Parts 30, 40, and 70, APS to receive, possess, and use at any time any byproduct, source, and special nuclear material as sealed neutron sources for reactor startup, as sealed sources for reactor instrumentation and radiation monitoring equipment calibration, and as fission detectors in amounts as required; Renewed Facility Operating License No. NPF-74

- 4 (4)

Pursuant to the Act and 10 CFR Part 30, 40, and 70, APS to receive, possess, and use in amounts 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 (5)

Pursuant to the Act and 10 CFR Parts 30, 40, and 70, APS to possess, but not separate, such byproduct and special nuclear materials as may be produced by the 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 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 Arizona Public Service Company (APS) is authorized to operate the facility at reactor core power levels not in excess of 3990 megawatts thermal (100% power), in accordance with the conditions specified herein.

(2)

Technical Specifications and Environmental Protection Plan The Technical Specifications contained in Appendix A, as revised through Amendment No. 184, and the Environmental Protection Plan contained in Appendix B, are hereby incorporated into this renewed operating license.

APS shall operate the facility in accordance with the Technical Specifications and the Environmental Protection Plan, except where otherwise stated in specific license conditions.

(3)

Antitrust Conditions This renewed operating license is subject to the antitrust conditions delineated in Appendix C to this renewed operating license.

(4)

Initial Test Program (Section 14, SER and SSER 2)

Deleted (5)

Additional Conditions The Additional Conditions contained in Appendix 0, as revised through Amendment No. 171, are hereby incorporated into this renewed operating license. The licensee shall operate the facility in accordance with the Additional Conditions.

Renewed Facility Operating License No. NPF-74

- 5 (6)

Mitigation Strategy License Condition APS shall 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.

(7)

License Renewal License Conditions (a)

The information in the UFSAR supplement, as revised, submitted pursuant to 10 CFR 54.21 {d}, shall be incorporated into the next UFSAR no later than the next scheduled update required by 10 CFR 50.71(e), following the issuance of this renewed operating license. Until this update is complete, the licensee may make changes to the information in the supplement without Commission approval provided that the licensee evaluates such changes pursuant to the criteria in 10 CFR 50.59 and otherwise complies with the requirements of that section.

Renewed Facility Operating License No. NPF-74

- 6 (b)

The UFSAR supplement, as revised, submitted pursuant to 10 CFR 54.21 (d), describes certain future activities to be completed prior to and/or during the period of extended operation.

The licensee shall complete these activities in accordance with Appendix A of NUREG-1961, "Safety Evaluation Report Related to the License Renewal of Palo Verde Nuclear Generating Station, Units 1, 2, and 3," issued April 2011. The licensee shall notify the NRC in writing when activities to be completed prior to the period of extended operation are complete and can be verified by NRC inspection.

(c)

All capsules in the reactor vessel that are removed and tested must meet the test procedures and reporting requirements of American Society for Testing and Materials (ASTM) E 185-82 to the extent practicable for the configuration of the specimens in the capsule. The NRC must approve any changes to the capsule withdrawal schedule, including spare capsules, prior to implementation. All capsules placed in storage must be maintained for future insertion. The NRC must approve any changes to storage requirements.

D.

APS has previously been granted an exemption from Paragraph III.D.2(b)(ii) of Appendix J to 10 CFR Part 50. This exemption was previously granted in Facility Operating License NPF-65 pursuant to 10 CFR 50.12.

With the granting of this exemption, 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.

E.

The licensees shall fully implement and maintain in effect all provisions of the Commission-approved physical security, 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: "Palo Verde Nuclear Station Security Plan, Training and Qualification Plan, Safeguards Contingency Plan and Independent Spent Fuel Storage Installation Security Program Revision 3,"

submitted by letter dated May 16, 2006.

F.

APS shall implement and maintain in effect all provisions of the approved fire protection program as described in the Final Safety Analysis Report for the facility, as supplemented and amended, and as approved in the SER through Supplement 11, subject to the following provision:

APS may make changes to the approved fire protection program without approval of the Commission only if those Renewed Facility Operating License No. NPF-74

- 7 changes would not adversely affect the ability to achieve and maintain safe shutdown in the event of a fire.

G.

Deleted H.

The licensees 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; and I.

This renewed operating license is effective as of the date of issuance and shall expire at midnight on November 25, 2047.

FOR THE NUCLEAR REGULATORY COMMISSION

~/~

Eric J. Leeds, Director Office of Nuclear Reactor Regulation Attachments:

1. [Requirements for Initial Mode 1 Entry] - Deleted
2. Appendix A - Technical Specifications
3. Appendix B - Environmental Protection Plan
4. Appendix C - Antitrust Conditions
5. Appendix D - Additional Conditions Date of Issuance: April 21, 2011 Renewed Facility Operating License No. NPF-74

Appendix A: Technical Specifications Palo Verde, Unit 3, uses the same Appendix A as Palo Verde, Unit 1. Please refer to Palo Verde, Unit 1, for Appendix A (ML110871955).

Appendix B: Environmental Protection Plan Palo Verde, Unit 3, uses the same Appendix B as Palo Verde, Unit 1. Please refer to Palo Verde, Unit 1, for Appendix B (ML110871955).

DO NOT Rt:~f~OVE

\\'--".

liCENSE AUTHORITY FILE COpy NOVEMBER '1-987

'\\

APPENDIX C ANTITRUST CONDITIONS LICENSE NO. NPF-74 Arizona Public Service Company and the Salt River Project Agricultural Improvement and Power District shall comply with the following antitrust conditions:

1.

In connection with the antitrust conditions, the following definitions are used herein:

A.

"Bull< Power" means the electric power, and any attendant energy, supplied or made available at transmission or subtransmission voltage by one entity to another.

~

B.

"Entity'l means a person, private or public corporation, a municipality, a cooperative, an association, a joint stock association or business trust owning, operating or proposing in good faith to own or operate equipment or facilities for the generation, transmission or distribution of electricity to or for the public as a utility.

C.

"Joint Applicant(s)'1 means the Arizona Public Service Company and the Salt River Project Agricultural Improvement and Power District.

2.

A.

Each Joint Applicant will transmit Bulk Power over its transmission system, between or among two or more Entities with which it is interconnected, or will be interconnected in the future, without restrictions on use or resale of the power so transmitted, provided that such services can reasonably be accommodated from a technical standpoint without impairing each Joint Applicant's reliability or its own use of its facilities.

B.

Each Joint Applicant is obligated under this condition to transmit Bulk Power on the terms stated above, and 1n connection with each Joint Applicant's plan to construct new transmission facilities for its own use, to include in its planning and construction program sufficient transmission capacity for such Bulk Power transactions, provided that such Applicant has received sufficient advance notice as may be necessary from a technical standpoint to accommodate the requirements of any requesting entity, and further provided that such entity{ies) are obligated as may be agreed (i) to share the capital, operating and maintenance costs of such new transmission facilities to the extent that additional cost burdens would be imposed on such Joint Applicant or (ii) to compensate the Joint Applicant fully for the use of its system.

r.........

i '.

. t*

C V

- 2

3.

The foregoing shall be implemented in a manner consistent with the provisions of the Federal Power Act as applicable and all rates, charges or practices in connection herewith are to be subject to the approval of regulatory agencies having jurisdiction over them.

Appendix 0: Additional Conditions Palo Verde. Unit 3. uses the same Appendix 0 as Palo Verde. Unit 1. Please refer to Palo Verde. Unit 1, for Appendix 0 (ML110871955).

[7590-01-P]

NUCLEAR REGULATORY COMMISSION ARIZONA PUBLIC SERVICE COMPANY PALO VERDE NUCLEAR GENERATING STATION, UNITS 1, 2, AND 3 NOTICE OF ISSUANCE OF RENEWED FACILITY OPERATING LICENSE NOS. NPF-41) NPF-51, AND NPF-74 FOR AN ADDITIONAL 20-YEAR PERIOD RECORD OF DECISION DOCKET NOS. 50-528, 50-529,50-530 NRC-2009-0012 Notice is hereby given that the U.S. Nuclear Regulatory Commission (NRC, the Commission) has issued Renewed Facility Operating License Nos. NPF-41, NPF-51, and NPF-74 to Arizona Public Service Company (licensee), the operator of the Palo Verde Nuclear Generating Station, Units 1, 2, and 3 (PVNGS). Renewed Facility Operating License Nos. NPF-41, NPF-51, and NPF-74 authorize the licensee to operate PVNGS at reactor core power levels not in excess of 3990 megawatts thermal for all three units, in accordance with the provisions of the PVNGS renewed licenses and technical specifications.

The notice also serves as the record of decision for Renewed Facility Operating License Nos. NPF-41, NPF-51, and NPF-74, consistent with Title 10 of the Code of Federal Regulations (10 CFR) 51.103, "Record of Decision - GeneraL" NUREG-1437, "Generic Environmental Impact Statement for License Renewal of Nuclear Plants: Supplement 43, Regarding Palo Verde Nuclear Generating Station," issued January 2011, discusses the Commission's consideration of a range of reasonable alternatives, including generation of replacement power from new supercritical coal-fired generation; natural gas combined-cycle generation; new

-2 nuclear generation; a combination of alternatives that includes natural gas combined-cycle generation, energy conservation, and solar; and not renewing the license (the no-action alternative). The factors considered in the record of decision appear in the supplemental environmental impact statement for PVNGS.

PVNGS units are pressurized water reactors located in Maricopa County, Arizona. The application for the renewed licenses complied with the standards and requirements of the Atomic Energy Act of 1954, as amended, and the Commission's regulations. As required by the Atomic Energy Act and the Commission's regulations in 10 CFR Chapter I, the Commission has made appropriate findings, which are set forth in the licenses. Prior public notice of the action involving the proposed issuance of the renewed licenses and of an opportunity for a hearing regarding the proposed issuance of the renewed licenses was published in the Federal Register on May 15, 2009 (74 FR 22978).

For further details with respect to this action, see: (1) Arizona Public Service Company's license renewal application for PVNGS dated December 11, 2008, as supplemented by letters dated through March 17, 2011; (2) the Commission's safety evaluation report (NUREG-1961),

issued April 2011; (3) the licensee's updated final safety analysis report; and (4) the Commission's final environmental impact statement (NUREG-1437, Supplement 43), issued January 2011. These documents are available at the NRC's PubliC Document Room, One White Flint North, 11555 Rockville Pike, Rockville, Maryland 20852, and in the public Electronic Reading Room on the NRC website at http://www.nrc.gov/reading-rm/adams.html.

Copies of Renewed Facility Operating License Nos. NPF-41, NPF-51, and NPF-74, may be obtained by writing to the U.S. Nuclear Regulatory Commission, Washington, DC 20555-0001, Attention: Director, Division of License Renewal. Copies of the PVNGS safety evaluation report (NUREG-1961) and the final environmental impact statement (NUREG-1437, Supplement 43) may be purchased from the National Technical Information Service, U.S.

-3 Department of Commerce, Springfield, Virginia 22161 (http://www.ntis.gov), 703-605-6000, or Attention: Superintendent of Documents, U.S. Government Printing Office, P.O. Box 371954 Pittsburgh, PA 15250-7954 (http://www.gpoaccess.gov), 202-512-1800. All orders should clearly identify the NRC publication number and the requestor's Government Printing Office deposit account number or VISA or MasterCard number and expiration date.

Dated at Rockville, Maryland, this 21th day of April, 2011.

FOR THE NUCLEAR REGULATORY COMMISSION Andrew S. Imboden, Chief Environmental Review and Guidance Update Branch Division of License Renewal Office of Nuclear Reactor Regulation