ML13030A032

Documentation of Liability Insurance Coverage Requested Per Supplemental Safety Evaluation Report (Sser) Open Item 25

ML13030A032
Person / Time
Site:	Watts Bar
Issue date:	01/24/2013
From:	Hruby R Tennessee Valley Authority
To:	Document Control Desk, Office of Nuclear Reactor Regulation
References
Download: ML13030A032 (11)

Text

-1 ,

Tennessee Valley Authority, Post Office Box 2000, Spring City, Tennessee 37381-2000 January 24, 2013 10 CFR 140.11 U.S. Nuclear Regulatory Commission ATTN: Document Control Desk Washington, D.C. 20555-0001 Watts Bar Nuclear Plant, Unit 2 NRC Docket No.:50-391

Subject:

Watts Bar Nuclear Plant Unit 2 - Documentation of Liability Insurance Coverage Requested Per Supplemental Safety Evaluation Report (SSER)

Open Item 25 SSER Appendix HH Open Item 25 states that TVA is required to provide satisfactory documentation that TVA has obtained the maximum secondary liability insurance coverage pursuant to 10 CFR 140.11 (a)(4) and not less than the amount required by 10 CFR 50.54(w).

The enclosed letter provides the requested Certificate of Insurance for Watts Bar Nuclear Plant Unit 2. The submittal of this letter completes TVA's actions associated with SSER Open Item 25.

There are no new regulatory commitments contained in this letter. If you have any questions, please contact Gordon Arent at (423) 365-2004.

Respectfully, Raymond A. Hruby, Jr.

General Manager, Technical Services Watts Bar Unit 2

Enclosure:

Letter from E. Visor (Marsh USA Inc.) to I. Dinitz (NRC), "Watts Bar Unit 2: Bond Payment of Retrospective Premium," dated October 3, 2011 o hL

U.S. Nuclear Regulatory Commission Page 2 January 24, 2013 cc (Enclosure):

U. S. Nuclear Regulatory Commission Region II Marquis One Tower 245 Peachtree Center Ave., NE Suite 1200 Atlanta, Georgia 30303-1257 NRC Resident Inspector Unit 2 Watts Bar Nuclear Plant 1260 Nuclear Plant Road Spring City, Tennessee 37381

Enclosure I Letter from E. Visor (Marsh USA Inc.) to I. Dinitz (NRC),

"Watts Bar Unit 2: Bond Payment of Retrospective Premium,"

dated October 3, 2011

Eugina A Visor, ARM Nuclear Client Advisor MARSH Marsh USA Inc.

100 North Tryon Street Suite 3200 Charlotte, NC 28202 704 374 8241 Eugina.A.Visor@marsh.com www.marsh.com Mr. Ira Dinitz Insurance & Indemnity Policy Analyst U.S. Nuclear Regulatory Commission Mail Stop 12E4 Washington, DC 20555 October 03, 2011

Subject:

Watts Bar Unit 2: Bond for Payment of Retrospective Premium

Dear Ira,

Enclosed please find the certified copy of the Bond for Payment of Retrospective Premiums for Watts Bar Unit 2 in accordance with 10CFR140.15. Please note that the certificate is worded so that it will not become effective until the effective date of the Nuclear Regulatory Commission's Facility Operating License.

If you have any questions or concerns, please do not hesitate to contact me at (704) 374-8241 or Shannon Moyer at (215) 246-1463.

Sincerely, Eugina A Visor, ARM Nuclear Client Advisor Copy:

Vicki Harkleroad, Gordon Arent, William D. Couch, Tim Fischer, and Shannon Moyer LEADERSHIP, KNOWLEDGE, SOLUTIONS...WORLDWIDE.

"*1* MARSH & McLENNAN COMPANIES

NUCLEAR ENERGY LIABILITY INSURANCE ASSOCIATION Certificate No. N -0120 Forming Part of Master Policy No. I CERTIFICATE OF INSURANCE DECLARATIONS AND BOND FOR PAYMENT OF RETROSPECTIVE PREMIUMS Certificate of Insurance This is to certify that the persons and organizations designated in Item I of the Declarations are named insureds under the Master Policy - Nuclear Energy Liability Insurance (Secondary Financial Protection), herein called the "Master Policy", issued by Nuclear Energy Liability Insurance Association.

Such insurance as is provided by the Master Policy applies, through this certificate, only:

(a) to the insureds identified in Items I and 2 of the Declarations, (b) for the certificate period stated in Item 6 of the Declarations, (c) to bodily iniury or property damage (1) with respect to which the primary financial protection described in Item 4 of the Declarations would apply but for exhaustion of its limit of liability as described in Condition 6 of the Master Policy, and (2) which is caused during the certificate period stated in Item 6 of the Declarations by a nuclear incident arising out of or in connection with the nuclear reactor described in Item 3 of the Declarations, and NSFC-1 (1/1/83) Page I

(3) which is discovered and for which written claim is made against the insured not later than ten years after the end of the certificate period stated in Item 6 of the Declarations.

However, with respect to bodily injury or property damage caused by an extraordinary nuclear occurrence this subparagraph (3) shall not operate to bar coverage for bodil jury or property damage which is discovered and for which written claim is made against the insured not later than twenty years after the date of the extraordinary nuclear occurrence.

Declarations Item I. Named insureds and addresses:

(a) Tennessee Valley Authority - 1101 Market Street, Mail Stop "T! Q,,

Chattanooga, TN 37402 (b)

Item 2. Additional insureds:

Any other person or organization who would be insured under the primary financial protection identified in Item 4 of the Declarations but for exhaustion of the limit of liability of such primarY financial protection.

Item 3. Description and location of nuclear reactor: Unit 2 of the Watts Bar Nuclear Plant located in Rhea County, Tennessee.

Page 2 of Certificate No. N- 0120

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

Nuclear Energy Liability Insurance Association's Policy NF- 0256 $375,000,000 Mutual Atomic Energy Liability Underwriter's Policy MF- N/A $ N/A (b) The following endorsements, attached to the primary financial protection policies listed in Item 4 (a) also apply to the insurance afforded by the Master Policy through this certificate as though they were attached hereto:

(I) Waiver of Defenses Endorsement (Extraordinary Nuclear Occurrence) and (2) Supplementary Endorsement - Waiver of Defenses - Reactor Construction at the Facility, (c) The limits of liability provided under the primary financial protection specified in Item 4 (a) above are not shared with any other reactor except as follows:

Item 5. Limits of Liability: The amount of retrospective premium actually received by the companies plus the amount of the companies' contingent liability, if any, pursuant to Conditions 2, 3 and 4 of the Master Policy.

Page 3 of Certificate No. N-0 120

Item 6. Certificate Period: Beginning at the same time and date that the Facility Operating License issued by the United States Nuclear Regulatory Commission for the reactor described in Item 3 of this certificate becomes effective and continuing to the effective date and time of cancellation or termination of the Master Policy or this certificate, whichever first occurs, eastern standard time.

Item 7. Maximum retrospective premium (exclusive of allowance for premium taxes) payable pursuant to Condition 2 of the Master Policy with respect to each nuclear incident: $117,495,000.

Item 8. Portion of the annual premium payable for the companies' contingent liability described in Condition 4 of the Master Policy from the effective date hereof to the end of calendar year 2011 :

The pro rata portion of $ 9,492 for the period from the effective date of this certificate to the end of the calendar year during which such effective date occurs.

Page 4 of Certificate No. N-0120

BOND FOR PAYMENT OF RETROSPECTIVE PREMIUMS Know All Men By These Presents, that the undersigned do hereby acknowledge that they are named insureds under the Master Policy described in the above Certificate of Insurance and Declarations. The named insureds do hereby covenant with and are held and are firmly bound to the members of Nuclear Energy Liability Insurance Association subscribing the Master Policy (hereinafter called the "companies") to pay to the companies all retrospective premiums and allowances for premium taxes which shall become due and payable in accordance with the Master Policy, as it may be changed from time to time, with interest on such premiums and allowances for taxes to be computed at the rate provided in the Master Policy from the date payment thereof is specified to be due the companies in written notice to the first named insured as provided in Condition 2 of the Master Policy until paid; And it is hereby expressly agreed that copies of written notices of retrospective premiums and allowances for premium taxes due and payable or other evidence of such amounts due and payable sworn to by a duly authorized representative of the companies shall be prima facie evidence of the fact and extent of the liability of the named insureds for such amounts; And it is further expressly agreed that the named insureds will indemnify the companies against any and all liability, losses and expenses of whatsoever kind or nature (including but not limited to interest, court costs, and counsel fees) which the companies may sustain or incur (1) by reason of the failure of the named insureds to comply with the covenants and provisions of this Bond and (2) in enforcing any of the covenants or provisions of this Bond, or any provisions of the Master Policy relating to such covenants or provisions; For the purpose of recording this agreement, a photocopy acknowledged before a Notary Public to be a true copy hereof %hall be regarded as an original.

Page 5 of Certificate No. N-0120

The preceding Certificate of Insurance, Declarations and Bond form a part of the Master Policy.

Cancellation or termination of the Master Policy or the Certificate of lnurance shall not affect the named insured's obligationsLunder the policy or the Bond to pay the retrospective premiums and allowances for premium taxes, as provided in this Certificate and Condition 2 of the Master Policy.

IN WITNESS WHEREOF, the named insureds have caused this Certificate, these Declarations and this Bond for Payment of Retrospective Premiums, to be signed and sealed by a duly authorized officer, to be effective as of the time and date of the inception of the Certificate period.

Attest or Witness Named Insureds:

TennestwidVY1110,*ut hority (N " STAT ".9 or Print)

Z:* OF ,% S (Type or Print Name atnnd Title)

~ j~j~RM:I/43/4=13

( t (Date)

Page 6 of Certificate No. N-0120

IN WITNESS WHEREOF, the companies subscribing the Master Policy have caused the Certificate of Insurance and Declarations to be signed on their behalf by the President of Nuclear Energy Liability Insurance Association to be effective as of the time and date of the inception of the Certificate period, and countersigned below by a duly authorized representative.

Attest or Witness For the Subscribing Companies of NUCLEAR ENERGY LIABILITY INS tNC Countersigned by utAhorized Representative)

Page 7 of Certificate No. N-0 120