ML110880065
| ML110880065 | |
| Person / Time | |
|---|---|
| Site: | Oconee, Mcguire, Catawba, McGuire  |
| Issue date: | 03/24/2011 |
| From: | Glover R Duke Energy Carolinas |
| To: | Document Control Desk, Office of Nuclear Reactor Regulation |
| References | |
| Download: ML110880065 (9) | |
Text
R. Michael Glover Duke General Manager, Nuclear Support ridEnergy Nuclear Generation Duke Energy Corporation 526 South Church Street Charlotte,NC 28202 Mailing Address:
P. 0. Box 1006 ECO7H Charlotte,NC 28201-1006 704-382-6108 March 24, 2011 Mike.Glover@duke-energy.com U. S. Nuclear Regulatory Commission Attn: Document Control Desk Washington, DC 20555-0001
Subject:
Duke Energy Carolinas, LLC (Duke Energy)
Oconee Nuclear Station, Units 1, 2, and 3, Docket Nos. 50-269, 50-270, 50-287 McGuire Nuclear Station, Units 1 and 2, Docket Nos. 50-369, 50-370 Catawba Nuclear Station, Units 1 and 2, Docket Nos. 50-413, 50-414 2011 Nuclear Energy Liability Program - Changes in Subscribing Companies and in their Proportionate Liability Endorsements Pursuant to 10 CFR 140.15(e), Duke Energy is submitting the following certified endorsements indicating Changes in Subscribing Companies and in their Proportionate Liability Endorsement as received from Marsh USA Inc. for the 2011 Nuclear Energy Liability Program.
- Endorsement # 185 to Oconee Facility Form (NF - 0182)
- Endorsement # 143 to McGuire Facility Form (NF - 0248)
- Endorsement # 134 to Catawba Facility Form (NF - 0281)
This letter contains no new commitments.
Please contact L. B. Jones at 704 382-4753 or Luellen.Jones(&.duke-enerqv.com for any questions.
Sincerely, R. Michael Glover General Manager, Nuclear Support Attachment - Letter to Duke Energy from Marsh USA Inc., "Changes in Subscribing Companies and in their Proportional Liability Endorsements" for Oconee, McGuire, Catawba Nuclear Stations, dated March 16, 2011 www.duke-energy.com
U. S. Nuclear Regulatory Commission March 24, 2011 Page 2 xc:
V. M. McCree, Region II Administrator U.S. Nuclear Regulatory Commission Marquis One Tower 245 Peachtree Center Ave., NE Suite 1200 Atlanta, Georgia 30303-1257 I. P. Dinitz, Insurance Indemnity Specialist 11555 Rockville Pike Mail Stop 0-12 D3 Rockville, MD 20852-2738 J. F. Stang, Jr., Senior Project Manager (ONS)
U.S. Nuclear Regulatory Commission 11555 Rockville Pike Mail Stop 0-8 G9A Rockville, MD 20852-2738 J. H. Thompson, Project Manager (MNS)
U. S. Nuclear Regulatory Commission 11555 Rockville Pike Mail Stop 0-8 G9A Rockville, MD 20852-2738 A. T. Sabisch NRC Senior Resident Inspector Oconee Nuclear Station J. B. Brady NRC Senior Resident Inspector McGuire Nuclear Station
Eugina Visor, ARM Nuclear Client Advisor Attachment MARSH Marsh USA Inc.
100 N. Tryon Street, Suite 3200 Charlotte, NC 28202 704 374 8241 Fax 704 374 8741 Eugina.A.Visor@Marsh.com www.marsh.com March 16, 2011 Mr. Mark A. Webster, CPCU Manager Liability & Financial Insurance Global Risk Management and Insurance Duke Energy Center PO Box 1321, DEC 40-C Charlotte NC, 28201
Subject:
2011 Nuclear Energy Liability Program Endorsement Transmittal "Changes in Subscribing Companies and in their Proportionate Liability Endorsements" 01/0112011 - 01/01/2012
Dear Mark,
Enclosed, please find the 2011 "Changes in Subscribing Companies and in their Proportionate Liability Endorsements" for your Nuclear Energy Liability Program policies. All endorsements have been reviewed and verified to be both complete and correct.
The following describes the type and purpose of the applicable policy change endorsements enclosed.
Endorsement Type Purpose Subscribing Companies and in their Provides detail as to the actual insurance Proportionate Liability Endorsement companies that are providing capacity through their respective proportionate I participation percentage.
Regulatory Background and Financial Stability Ratings You will recall that American Nuclear Insurers (ANI) is a joint underwriting association, an organization created by some of the largest stock insurance companies in the United States.
The purpose of a joint underwriting association is to "pool" the financial assets pledged by these member companies to provide the significant amount of liability insurance made available to nuclear power plants and related facilities. Under the Price-Anderson Act of
MARSH Page 2 March 16, 2011 1957, as amended, licensees of the NRC are required to meet minimum standards of "financial protection" at levels equal to the amount of liability insurance available from private sources.
As respects, facilities designed for producing substantial amounts of electricity and having a rated capacity of 100,000 electrical kilowatts or more, the amount of primary financial
-protectionrequired-"shall-bethe-maximumm - re-as-onablel5 cost and on reasonable terms from private sources." Financial protection may include private insurance, private contractual indemnities, self-insurance, other proof of financial responsibility, or a combination of such measures. Additionally, these licensees are required to maintain private liability insurance under the industry retrospective rating plan (SFP).
Your "Changes in Subscribing Companies and in their Proportionate Liability Endorsement" provides detail as to the actual insurance companies that are providing capacity through their respective proportionate participation percentage for the given policy for the period beginning January 1st, 2011 through December 31st, 2011.
Please note that ANI requires that all companies meet their stringent eligibility requirements, and that all companies meet Marsh's minimum financial requirements of an A.M. Best Rating of "A-" (Excellent - strong ability to meet contractual obligations over a long period of time) and an unencumbered policy holders' surplus of $50 million (Financial Size Category of VII,
$50-$1s OM). ANI's membership criteria is as follows:
- 1. A License to write Property / Casualty business in at least one jurisdiction in the United States;
- 2. A.M. Best's rating of "A-" or better;
- 3. A policyholder's surplus (PHS) of at least $100 million;
- 4. Unqualified, audited financial statements for the latest financial reporting period;
- 5. No more than 10% PHS committed to ANI's Domestic Syndicate.
For your convenience, I have summarized the Current A.M. Best as well as the latest Standard and Poor's (S&P) ratings for all subscribing companies below:
MARSH Page 3 March 16, 2011 Sbsrbn Copne - US Nucea Poo Bes S&
American Commerce Insurance Company A+ XIV NR AXIS Reinsurance Company A XV A+
Employers Mutual Casualty Company A- XII BBBpi Federal Insurance Company A++ XV AA Liberty Mutual A XV A-State Farm Mutual Automobile Insurance Company A++ XV AA Zurich American Insurance Company A+ XV AA-
- Ratings are accurate as of February 22, 2011 and subject to change***
ANI's list of Subscribing Companies remains unchanged from last year.
Additionally, Zurich American Insurance Company increased their rating from A to A+, all other AM Best Financial Strength Ratings (FSR) remained the same from 2010, and American Commerce Insurance Company and Employers Mutual Casualty Company both increased in the Financial Size Category (FSC). American Commerce Insurance Company was not rated by S&P, but all other S&P ratings remained the same for the subscribing companies.
Secondary Financial Protection (SFP) Policies and Facility Worker Form Policies As you know, coverage under the Master Worker and the Secondary Financial Protection program policies is provided via certificate only. The policies themselves are actually single nuclear energy liability policies in the custody of the Nuclear Energy Liability Insurance Association (ANI) and the Nuclear Regulatory Commission (NRC), respectively. All utility "policyholders" and their subsidiaries with nuclear operations are provided coverage under these two industry-wide insurance policies via certificate to the applicable Master Policy.
Therefore, ANI endorses only the Master Policies to recognize the change in subscribing companies and the participating "policyholders" certificates are not specifically endorsed. I have included copies of the Master Worker and Master Secondary Financial Protection Policy endorsements, as applicable for your records, however, please note that ANI has forwarded copies of these endorsements to the NRC directly.
MARSH Page 4 March 16, 2011 Policy End # Policy Limits Endorsement Master Worker 20 $ 375 M 2011 Changes in Subscribing Companies (ANI Custody) and in their Proportionate Liability Master SFP 54 $ 117.495 M 2011 Changes in Subscribing Companies (NRC Custody) and in their Proportionate Liability Regulatory. Reporting and Contractual Compliance Services As requested, we have enclosed the certified copies of all applicable endorsements to your Facility Form policies, Master Worker certificates and Secondary Financial Protection certificates. Please forward to Mr. Ira Dinitz at the NRC in accordance with 10 CFR 140.15(e). Ifyou no longer desire to forward certified endorsements to the NRC, we would be more than happy to provide this service.
This letter represents a synopsis of coverage and is provided as a reference only. The actual policy, including endorsements, determines coverage. It contains exclusions, limitations and other provisions not referenced (or only briefly summarized) here and the policy should be consulted for full coverage terms, conditions and requirements. It is important that you review the policies and advise us at your earliest opportunity of anything which you believe is not in accordance with the negotiated coverage and terms.
Should you have any questions, please do not hesitate to contact me at (704) 374-8241, Mr.
Shannon Moyer at (215) 246-1463 or any other member of the Marsh U.S. Nuclear Energy Center of Excellence.
On behalf of everyone at Marsh, I thank you for the opportunity to provide assistance with your U.S. nuclear placements, and we look forward to continuing our relationship in 2011.
Sincerely, Eugina Visor Marsh U.S. Nuclear Energy Center of Excellence Nuclear Client Advisor
NUCLEAR ENERGY LIABILITY INSURANCE NUCLEAR ENERGY LIABILITY INSURANCE ASSOCIATION CHANGES IN SUBSCRIBING COMPANIES AND IN THEIR PROPORTIONATE LIABILITY ENDORSEMENT CALENDAR YEAR 2011
- 1. It is agreed that with respect to bodily injury, property damage, environmental damage or evacuation of the public caused, during the effective period of this endorsement, by the nuclear energy hazard:
- a. The word "companies" wherever used in the policy means the subscribing companies listed below.
- b. The policy shall be binding on such companies only.
- c. Each such company shall be liable for its proportion of any obligation assumed or expense incurred under the policy because of such bodily injury, property damage, environmental damage or evacuation of the public as designated below.
- 2. It is agreed that the effective period of this endorsement is from the beginning of the effective date of this endorsement stated below to the close of December 31, 2011 or to the time of the termination or cancellation of the policy, if sooner.
American Commerce Insurance Company 11.206897%
AXIS Reinsurance Company 15.517241 %
Employers Mutual Casualty Company 3.448276%
Federal Insurance Company 32.327586%
Liberty Mutual 17.241379%
State Farm Mutual Automobile Insurance Company 10.344828%
Zurich American Insurance Company 9.913793%
Total 100.000000% NE-2011 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.
Gary S. Uricchio, Vice President - Underwriting, American Nuclear Insurers Effective Date of this Endorsement: January 1, 2011 To form a part of Policy No. NF -0182 (12:01 A.M. Standard Time)
Issued to: Duke Energy Carolinas, LLC Date of Issue: February 18, 2011 For the subscribing companies By id c'President Endorsement No.: 185 Countersigned by CERTIFIED COPY
NUCLEAR ENERGY LIABILITY INSURANCE NUCLEAR ENERGY LIABILITY INSURANCE ASSOCIATION CHANGES IN SUBSCRIBING COMPANIES AND IN THEIR PROPORTIONATE LIABILITY ENDORSEMENT CALENDAR YEAR 2011
- 1. It is agreed that with respect to bodily 'injury, property damage, environmental damage or evacuation of the public caused, during the effective period of this endorsement, by the nuclear energy hazard:
- a. The word "companies" wherever used in the policy means the subscribing companies listed below.
- b. The policy shall be binding on such companies only.
- c. Each such company shall be liable for its proportion of any obligation assumed or expense incurred under the policy because of such bodily injury, property damage, environmental damage or evacuation of the public as designated below.
- 2. It is agreed that the effective period of this endorsement is from the beginning of the effective date of this endorsement stated below to the close of December 31, 2011 or to the time of the termination or cancellation of the policy, if sooner.
American Commerce Insurance Company 11.206897%
AXIS Reinsurance Company 15.517241 %
Employers Mutual Casualty Company 3.448276%
Federal Insurance Company 32.327586%
Liberty Mutual 17.241379%
State Farm Mutual Automobile Insurance Company 10.344828%
Zurich American Insurance Company 9.913793%
Total 100.000000% NE-2011 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.
Gary S. Uricchio, Vice President - Underwriting, American Nuclear Insurers Effective Date of this Endorsement: January 1, 2011 To form a part of Policy No. NF -0248 (12:01 A.M. Standard Time)
Issued to: Duke Energy Carolinas, LLC Date of Issue: February 18, 2011 For the subscribing companies By J 1 . t) ,' ,)r
" President Endorsement No.: 143 Countersigned by CERTIFIED COPY
NUCLEAR ENERGY LIABILITY INSURANCE NUCLEAR ENERGY LIABILITY INSURANCE ASSOCIATION CHANGES IN SUBSCRIBING COMPANIES AND IN THEIR PROPORTIONATE LIABILITY ENDORSEMENT CALENDAR YEAR 2011 I. It is agreed that with respect to bodily injury, property damage, environmental damage or evacuation of the public caused, during the effective period of this endorsement, by the nuclear energy hazard:
- a. The word "companies" wherever used in the policy means the subscribing companies listed below.
- b. The policy shall be binding on such companies only.
- c. Each such company shall be liable for its proportion of any obligation assumed or expense incurred under the policy because of such bodily injury, property damage, environmental damage or evacuation of the public as designated below.
- 2. It is agreed that the effective period of this endorsement is from the beginning of the effective date of this endorsement stated below to the close of December 31,2011 or to the time of the termination or cancellation of the policy, if sooner.
American Commerce Insurance Company 11.206897%
AXIS Reinsurance Company 15.517241 %
Employers Mutual Casualty Company 3.448276 %
Federal Insurance Company 32.327586 %
Liberty Mutual 17.241379 %
State Farm Mutual Automobile Insurance Company 10.344828 %
Zurich American Insurance Company 9.913793 %
Total 100,000000 % NE-2011 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.
Gary S. Uricchio, Vice President - Underwriting, American Nuclear Insurers Effective Date of this Endorsement: January 1, 2011 To form a part of Policy No. NF -0281 (12:01 A.M. Standard Time)
Issued to: Duke Energy Carolinas, LLC Date of Issue: February 18, 2011 For the subscribing companies By President Endorsement No.: 134 Countersigned by CERTIFIED COPY C