ML12073A346
| ML12073A346 | |
| Person / Time | |
|---|---|
| Site: | Oconee, Mcguire, Catawba, McGuire  |
| Issue date: | 03/09/2012 |
| From: | Waldrep B Duke Energy Carolinas |
| To: | Document Control Desk, Office of Nuclear Reactor Regulation |
| References | |
| Download: ML12073A346 (11) | |
Text
Benjamin C. Waldrep Duke Vice President P6Energy* 10 CFR 140.15(e) Nuclear Corporate Duke Energy Corporation 526 South Church Street Charlotte, NC 28202 MailingAddress:
ECO0H/P.0. Box 1006 Charlotte, NC 28201-1006 March 9, 2012 7043828162 704 382 6056 fax Commission U. S. Nuclear Regulatory Attn: Document Control Desk Benjamin.Waldrep@duke-energy.com 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 2012 Nuclear Energy Liability Program - Change in Subscribing Companies and in their Proportional Liability Endorsements In accordance with 10 CFR 140.15(e), Duke Energy is submitting the following certified endorsements indicating Changes in Subscribing Companies and in their Proportional Liability Endorsements as received from March USA Inc. for the 2012 Nuclear Energy Liability Program.
- Endorsement # 189 to Oconee Facility Form (NF - 0182)
- Endorsement # 145 to McGuire Facility Form (NF - 0248)
- Endorsement # 136 to Catawba Facility Form (NF - 0281)
- Endorsement # 21 to form a part of Nuclear Energy Liability Policy (Facility Worker Form) which is a Master Worker Policy in the custody of Nuclear Energy Liability Insurance Association
- Endorsement # 55 to form a part of Master Policy No. 1 which is in the custody of the Nuclear Regulatory Commission This letter contains no new commitments made in this letter.
Please contact Jeff Thomas at 704 382-3438 (Jeff.Thomas@duke-energy.com) for any questions.
Sincerely, Benjamin C. W 'ldrep Attachment - Letter to Duke Energy from March USA Inc., "Changes in Subscribing Companies and in their Proportional Liability Endorsements" for Oconee, McGuire and Catawba Nuclear Stations, dated February 17, 2012 www. duke-energy.com 0oo
U. S. Nuclear Regulatory Commission March 9, 2012 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 (CNS & 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. Zeiler NRC Senior Resident Inspector McGuire Nuclear Station A. Hutto, III NRC Senior Resident Inspector Catawba Nuclear Station
Eugina A Visor, CPCU Assistant Vice President MARSH Marsh USA Inc.
100 North Tryon Street Suite 3200 Charlotte, NC 28202 704 374 8241 Eugina.A.Visor@marsh.com www.marsh.corn Mr. Mark A. Webster, CPCU Manager, Liability & Financial -Insurance Duke Energy Corporation 550 South Tryon St, DEC40C Charlotte, NC 28202 February 17, 2012
Subject:
2012 Nuclear Energy Liability Program Endorsement Transmittal "Changes in Subscribing Companies and in their Proportionate Liability Endorsements" 01/01/2012 - 01/0112013
Dear Mark,
Enclosed, please find the 2012 "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 f6llbwing describes-the type and purpose-.of-the applicable-policy-chanrge 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 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 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.
- rkMARSH &McLENNAN LEADERSHIP, KNOWLEDGE, SOLUTIONS...WOVLDWIDE. COMPANIES
4MARSH Page 2 February 17, 2012 Mr. Mark A. Webster Duke Energy Corporation 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 protection required "shall be the maximum amount available at reasonable 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 1t, 2012 through December 31st, 2012.
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-$100M).
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.
" MARSH & MCLENNAN COMPANIES
MARSH Page 3 February 17, 2012 Mr. Mark A. Webster Duke Energy Corporation 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:
American Commerce Insurance Company A XIII NR AXIS Reinsurance Company A XV A+
Employers Mutual Casualty Company A- XI 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 13, 2012 and subject to change-ANI's list of Subscribing Companies remains unchanged from last year.
Additionally, American Commerce Insurance Company decreased their rating from A+ to A, and all other AM Best Financial Strength Ratings (FSR) remained the same from 2011, and American Commerce Insurance Company and Employers Mutual Casualty Company both decreased 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.
.fkI MARSH & McLENNAN 4100 COMPANIES
MARSH Page 4 February 17, 2012 Mr. Mark A.Webster Duke Energy Corporation Policy End # Policy Limits Endorsement Master Worker 21 $ 375 M 2012 Changes in Subscribing Companies (ANI Custody) and in their Proportionate Liability Master SFP 55 $ 117.495 M 2012 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). If you 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 policy 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. Tim Fischer at (704) 374-8210 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 2012.
Sincerely, Eugina A Visor, CPCU Marsh U.S. Nuclear Energy Center of Excellence Nuclear Client Advisor Copy: M. Fishbaugh, A. Galasso, T. Fischer, S. Moyer Enclosures MARSH & McLENNAN COMPANIES
NUCLAR ENERGY LIABILITY INS ANCE NUCLEAR ENERGY LIABILITY INSURANCE ASSOCIATION, CHANGES IN SUBSCRIBING COMPANIES AND IN THEIR PROPORTIONATE LIABILITY ENDORSEMENT CALENDAR YEAR 2012
- 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, 2012 or to the time of the termination or cancellation of the policy, if sooner.
American Commerce Insurance Company 11.311933%
AXIS Reinsurance Company 15.439531 %
Employers Mutual Casualty Company 3.770645%
Federal Insurance Company 32.166109%
Liberty Mutual 17.155175%
State Farm Mutual Automobile Insurance Company 10.292602%
Zurich American Insurance Company 9.864005%
Total 100.000000 % NE-2012 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, 2012 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 1, 2012 For the subscribing companies By
- j i11, 5, President Endorsement No.: 189 Countersigned by &AIt4-ZWJ>
CERTIFED COPY
NUC!0R ENERGY LIABILITY INSURANCE NUCLEAR ENERGY LIABILITY INSURANCE ASSOCIATION CHANGES IN SUBSCRIBING COMPANIES AND IN THEIR PROPORTIONATE LIABILITY ENDORSEMENT CALENDAR YEAR 2012
- 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, 2012 or to the time of the termination or cancellation of the policy, if sooner.
American Commerce Insurance Company 11.311933%
AXIS Reinsurance Company 15.439531 %
Employers Mutual Casualty Company 3.770645 %
Federal Insurance Company 32.166109%
Liberty Mutual 17.155175 %
State Farm Mutual Automobile Insurance Company 10.292602%
Zurich American Insurance Company 9.864005%
Total 100.000000% NE-2012 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, 2012 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 1, 2012 For the subscribing companies By
(~~'President Endorsement No.: 145 Countersigned by Z&ita CERTIFIED COPY
N E NUCLEAR ENERGY LIABILITY INSURANCE NUCLEAR ENERGY LIABILITY INSURANCE ASSOCIATION CHANGES IN SUBSCRIBING COMPANIES AND IN THEIR PROPORTIONATE LIABILITY ENDORSEMENT CALENDAR YEAR 2012
- 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, 2012 or to the time of the termination or cancellation of the policy, if sooner.
American Commerce Insurance Company 11.311933%
AXIS Reinsurance Company 15.439531 %
Employers Mutual Casualty Company 3.770645 %
Federal Insurance Company 32.166109%
Liberty Mutual 17.155175 %
State Farm Mutual Automobile Insurance Company 10.292602%
Zurich American Insurance Company 9.864005%
Total 100.000000 % NE-2012 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, 2012 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 1, 2012 For the subscribing companies
('*d Prsien By (17 c President Endorsement No.: 136 Countersigned by Zff4Lb1 1 2y CERTIFIED COPY
N E NUCLEAR ENERGY LIABILITY INSURANCE NUCLEAR ENERGY LIABILITY INSURANCE ASSOCIATION SUBSCRIBING COMPANIES AND THEIR PROPORTIONATE LIABILITY ENDORSEMENT - TO NUCLEAR ENERGY LIABILITY INSURANCE (FACILITY WORKER FORM)
CALENDAR YEAR 2012 I. It is agreed that with respect to bodily injury caused during the effective period of this endorsement by the nuclear energy hazard:
- a. The word "companies" wherever used in this certificate means the subscribing companies listed below.
- b. The certificate shall be binding on such companies only.
- c. Each such company shall be liable for its proportion, as designated below, of any obligation assumed or expense incurred under the certificate because of such bodily injury.
- 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, 2012 or to the effective date and time of the cancellation or other termination of this policy, whichever first occurs, Eastern Standard Time.
American Commerce Insurance Company 11.311933%
AXIS Reinsurance Company 15.439531 %
Employers Mutual Casualty Company 3.770645%
Federal Insurance Company 32.166109%
Liberty Mutual 17.155175%
State Farm Mutual Automobile Insurance Company 10.292602%
Zurich American Insurance Company 9.864005%
Total 100.000000% NE-2012 Effective Date of this Endorsement: January 1, 2012 To form a part of Nuclear Energy Liability Policy (12:01 A.M. Standard Time)
(Facility Worker Form) which is a Master Worker Policy in the custody of Nuclear Energy Liability Insurance Association Date of Issue: February 1, 2012 For the subscribing compa is By President Endorsement No.: 21 Countersigned by COPY
N E NUCLEAR ENERGY LIABILITY INSURANCE NUCLEAR ENERGY LIABILITY INSURANCE ASSOCIATION SUBSCRIBING COMPANIES AND THEIR PROPORTIONATE LIABILITY ENDORSEMENT - TO MASTER POLICY NO. I NUCLEAR ENERGY LIABILITY INSURANCE (SECONDARY FINANCIAL PROTECTION)
CALENDAR YEAR 2012 I. It is agreed that with respect to (i) bodily injury, property damage, environmental damage or evacuation of the public to which this Master Policy applies, caused during the effective period of this endorsement, and (ii) contingent liability as provided in Condition 4 for excess losses because retrospective premium due Linder one or more certificates with respect to such bodily injury, property damage, environmental damage or evacuation of the public is not paid:
- a. The word "companies" wherever used in this Master Policy means the subscribing companies listed below.
- b. The Master Policy shall be binding on such companies only.
- c. Each such company shall be liable for its proportion designated next to its name of any obligations assumed or expense incurred under this Master Policy.
- 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, 2012, or to the time of the termination or cancellation of this Master Policy, whichever first occurs, Eastern Standard Time.
American Commerce Insurance Company 11.311933%
AXIS Reinsurance Company 15.439531 %
Employers Mutual Casualty Company 3.770645%
Federal Insurance Company 32.166109%
Liberty Mutual 17.155175%
State Farm Mutual Automobile Insurance Company 10.292602%
Zurich American Insurance Company 9.864005%
Total 100.000000% NE-2012 Effective Date of this Endorsement: January 1, 2012 To form a part of Master Policy No. 1 (12:01 A.M. Standard Time)
Issued to: Master Policy which is in the custody of the Nuclear Regulatory Commission Date of Issue: February 1, 2012 For the subscribing comp ies By__4 Ps C (:)'President Endorsement No.: 55 Countersigned by - A~4 ~
COPY