ML13232A156
| ML13232A156 | |
| Person / Time | |
|---|---|
| Site: | Calvert Cliffs, Nine Mile Point, Ginna  |
| Issue date: | 08/06/2013 |
| From: | Korsnick M Constellation Energy Group, EDF Group, Exelon Generation Co |
| To: | Document Control Desk, Office of Nuclear Material Safety and Safeguards |
| References | |
| Download: ML13232A156 (103) | |
Text
INCLUDES PROPRIETARY INFORMATION WITHHOLD UNDER 10 CFR 2.390 Mary G. Korsnick Bryan P. Wright Acting Chief Executive Officer and Chief Nuclear Officer Senior Vice President, Chief Office 410-470-5133 Financial Officer Office 410-470-3213 ExelOn.
CENG-Generation a pnt venture of 10 CFR 50.80 10 CFR 50.90 10 CFR 72.50 August 6, 2013 U.S. Nuclear Regulatory Commission Washington, DC 20555-0001 ATTENTION:
Document Control Desk
SUBJECT:
Calvert Cliffs Nuclear Power Plant, Units 1 and 2 Renewed Facility Operating License Nos. DPR-53 and DPR-69 Docket Nos. 50-317 and 50-318 Calvert Cliffs Independent Spent Fuel Storage Installation Materials License No. SNM-2505 Docket No. 72-8 Nine Mile Point Nuclear Station, Units 1 and 2 Renewed Facility Operating License Nos. DPR-63 and NPF-69 Docket Nos. 50-220 and 50-410 Nine Mile Point Nuclear Station, Independent Spent Fuel Storage Installation General License Docket No. 72-1036 R.E. Ginna Nuclear Power Plant Renewed Facility Operating License No. DPR-18 Docket No. 50-244 R.E. Ginna Independent Spent Fuel Storage Installation General License Docket No. 72-67 Application for Order Approving Transfer of Operating Authority and Conforming License Amendments In accordance with Section 184 of the Atomic Energy Act of 1954, as amended (the Act), 10 CFR 50.80, 10 CFR 72.50 and 10 CFR 50.90, Constellation Energy Nuclear Group, LLC (CENG), acting on behalf of itself, Exelon Generation Company, LLC (Exelon Generation), and its subsidiary licensees, Calvert Cliffs Constellation Energy Nuclear Group, LLC 100 Constellation Way, Suite 200C, Baltimore, MD 21202 UNRESTRICTED UPON REMOVAL OF ATTACHMENT 6A Aoc)
Document Control Desk August 6 2013 Page 2 Nuclear Power Plant, LLC, Nine Mile Point Nuclear Station, LLC, and RE. Ginna Nuclear Power Plant, LLC (together, Applicants), hereby submits an application seeking U.S. Nuclear Regulatory Commission (NRC) consent to the direct transfers of operating authority under the following NRC licenses: (1) Calvert Cliffs Nuclear Power Plant, Unit Nos. 1 & 2, Operating Licenses DPR-53 & DPR-69 and Calvert Cliffs Independent Spent Fuel Storage Installation (ISFSI), Materials License No. SNM-2505; (2) Nine Mile Point Nuclear Station, Unit Nos. 1 & 2, Operating Licenses DPR-63 & NPF-69 and (3) R.E. Ginna Nuclear Power Plant, Operating License DPR-18 (collectively, the Licenses). (The facilities that are the subject of the Licenses are collectively referred to as the Facilities.) Nine Mile Point Nuclear Station and R.E. Ginna Nuclear Power Plant also operate general license ISFSIs Dkt. No. 72-1036 and Dkt.
No. 72-67), respectively. CENG also requests that NRC approve conforming administrative amendments to the Licenses in order to reflect the proposed transfers of operating authority. The license amendments should be approved, but not issued until consummation of the transactions to take place contemporaneously with the transfers of operating authority.
We will notify the NRC when the transaction has been consummated. This is a regulatory commitment.
Attachment (1) is the application for an Order approving the transfer of operating authority, including a general description of the CENG facilities and a discussion of the elements of the proposed transfer. Also included in this attachment are the proposed license changes and a No Significant Hazards discussion.
A wholly owned subsidiary of Exelon Generation, Constellation Nuclear LLC (CN) is one of two parent companies of CENG.' CN, through wholly owned subsidiaries, has a 50.01% ownership interest. Exelon Generation is a wholly owned subsidiary of Exelon Ventures Company, which is a wholly owned subsidiary of Exelon Corporation (Exelon). Exelon is the ultimate parent holding company, and its stock is publicly traded on the New York Stock Exchange and widely held. EDF Inc. is the other parent company of CENG, with a 49.99% ownership interest.2 As noted above, CENG has three NRC licensee subsidiary companies: (1) Calvert Cliffs Nuclear Power Plant, LLC; (2) Nine Mile Point Nuclear Station, LLC; and (3) R.E. Ginna Nuclear Power Plant, LLC (collectively, the Owner-Licensees), which own and operate the nuclear power plants of the same respective names.3 A chart showing the simplified organizational structure of the licensees before and after the transfer can be found in Attachment (2). General corporate information regarding the licensees and their parent companies can be found in Attachment (3).
Exelon Generation owns 100% of its subsidiary CN. CN owns a 49.08% interest in CENG and a 100% interest in CE Nuclear, LLC, which itself owns 0.93% of CENG. Under a proposed restructuring that is pending and expected to be completed in 2013, Exelon Generation would retain direct ownership of a 100% voting interest and a 90% non voting interest ownership in CN. The remaining 10% non-voting interest in CN would be held by Constellation Holdings, LLC, which is a wholly owned subsidiary of Exelon Generation. This restructuring was described by CENG letter dated May 9, 2013 (Adams Accession No. ML13141A408).
EDF Inc. is a U.S. corporation organized under the laws of the State of Delaware. EDF Inc. is 82.5% owned by E.D.F. International SAS, a limited company organized under the laws of France, which is in turn a wholly-owned subsidiary of Electricit6 de France SA, a French limited company (EDF). The remaining 17.5%
non controlling ownership interest in EDF Inc. is held by EDF Trading Limited, which is wholly owned by EDF Holdings SAS, which is wholly owned by EDF.
CENG owns a 100% interest in Constellation Nuclear Power Plants, LLC, which owns 100% interests in each of the subsidiary licensees.
Document Control Desk August 6 2013 Page 3 Exelon, EDF and CENG have agreed to consolidate the operation of the CENG Facilities into the Exelon Generation operating organization. This consolidation will allow the pooling of resources and the more efficient and effective operation of the Facilities as part of the Exelon Generation nuclear fleet. As a result of the proposed license transfers, Exelon Generation will assume direct licensed responsibility for the operation of the Facilities and will be able to operate the CENG assets on an integrated and seamless basis. The ownership of the Facilities will not be affected. However, EDF will have a "put option" to sell its 49.99% stake in CENG to Exelon Generation between 2016 and 2022 at fair market value. If this put option were exercised, Exelon Generation would acquire 100% ownership of the Facilities, subject to any required NRC approval at the time.
To effect the present transaction, Exelon Generation and the Owner-Licensees will enter into a Nuclear Operating Service Agreement (NOSA) pursuant to which Exelon Generation will assume operating responsibility for the Facilities and the Owner-Licensees will retain responsibility for paying for the costs of operation and decommissioning.
A copy of the "form of' NOSA to be executed is provided as Attachment (4).
Exelon Generation, as a proven nuclear operator, has all of the necessary technical qualifications to safely operate the Facilities.
The proposed transfers of operating authority will not adversely affect the financial qualifications of the Owner-Licensees to own the Facilities in accordance with the existing Licenses. Exelon Generation has an investment grade credit rating and is financially qualified standing alone based on the financial information provided and verified by Exelon Generation. In addition, Exelon Generation will recover the costs of operating the Facilities from the Owner-Licensees under the terms of the NOSA. The proposed transfers also will not result in any adverse changes to the decommissioning funding assurance for the Facilities.
The proposed transfers will not result in the Licensees becoming owned, controlled, or dominated by a foreign entity. Exelon Generation and its parents are domestic entities, and its assumption of the role of licensed operator will not have adverse implications for foreign ownership, control, or domination (FOCD). The ownership of CENG and the Facilities will not be affected. The existing FOCD negation measures for CENG will not be changed.
No physical changes will be made to the Facilities, and there will be no adverse changes in day-to-day operations as a result of the proposed transfers. The proposed transfers will neither have any adverse impact on the public health and safety, nor be inimical to the common defense and security. In summary, the proposed transfers will be consistent with the requirements set forth in the Act, NRC regulations, and the relevant Licenses and orders. Applicants therefore respectfully request that the NRC consent to the transfers in accordance with 10 CFR 50.80.
Additionally, in connection with this transfer of operational authority, CN, CE Nuclear, LLC, and EDF Inc. have agreed to certain amendments to the CENG limited liability company agreement, the Third Amended and Restated Operating Agreement dated as of March 12, 2012 (CENG Operating Agreement).
The proposed changes are provided as marked-up pages in Attachment (5). According to Condition 5 of the NRC's February 15, 2012 Orders granting the indirect transfer of control of the licenses pursuant to the merger of Exelon and Constellation Energy Group, Inc. (CEG) the "[CENG] Operating Agreement may not be modified in any respect concerning decisionmaking authority over nuclear safety, security, and reliability without the prior written consent of the Director, Office of Nuclear Reactor Regulation."
The proposed amendments arguably do not modify the decisionmaking authority within CENG over nuclear safety, security and reliability matters. Nevertheless, CENG requests consent from the Director, Office of Nuclear Reactor Regulation to confirm that CN, CE Nuclear, LLC and EDF Inc. are authorized to implement the CENG Operating Agreement changes indicated in Attachment (5).
Document Control Desk August 6 2013 Page 4 The financial information required by 10 CFR 50.33(f)(2) is provided in Attachment (6A), which is confidential commercial information that Applicants request be withheld from public disclosure pursuant to 10 CFR 2.390(a)(4) and 10 CFR 9.17(a)(4).
A redacted, non-proprietary version is provided in Attachment (6).
An affidavit supporting the request for withholding Attachment (6A) from public disclosure is also provided as Attachment (7).
Attachment (8) is a list of regulatory commitments.
Subject to the receipt of all required regulatory approvals, the Applicants wish to complete this transfer of operating authority promptly and have targeted a completion by March 31, 2014. Accordingly, the Applicants request that the NRC review this Application on a schedule that will permit the approval of the changes to the CENG Operating Agreement and issuance of the NRC order consenting to the transfers and approving conforming license amendments as promptly as possible and in any event by March 1, 2014. Such consent should be immediately effective upon issuance and should permit the transfer to occur up to one year after issuance or such later date as the NRC may permit.
Service upon the Applicants of comments, hearing requests, intervention petitions or other pleadings should be made to Counsel for Exelon Generation J. Bradley Fewell, Vice President and Deputy General Counsel, 200 Exelon Way Kennett Square, PA 19348 (tel: 610.765.5706; fax: 610.765.5737; email:
bradley.fewell(a),exeloncorp.com) and John E.
- Matthews, Morgan, Lewis & Bockius
- LLP, 1111 Pennsylvania Avenue, NW, Washington, DC 20004, (tel: 202.739.5524; fax: 202.739.3001; email:
imatthews@,Morganlewis.com), and Counsel for CENG, Steven Miller, Senior Vice President, General Counsel & Secretary, CENG, 100 Constellation
- Way, Suite 200C, Baltimore, MD 21202 (tel: 410.783.3312, fax: 443.213.3683; email: steven.miller(&cengllc.com) and David Repka, Winston &
Strawn LLP, 1700 K Street, N.W., Washington, DC 20005-3817 (tel: 202.282.5726; fax: 202.282.5100; email: drepka(winston.com).
Document Control Desk August 6 2013 Page 5 If any additional information is needed regarding this Application, please contact Everett (Chip) Perkins (CENG Licensing) at 410-470-3928 or David Helker (Exelon Licensing) at 610-765-5525.
STATE OF MARYLAND CITY OF BALTIMORE
- TO WIT:
I, Mary G. Korsnick, state that I am the Acting Chief Executive Officer of Constellation Energy Nuclear Group, LLC, and that I am duly authorized to execute and file this application on behalf of these companies. To the best of my knowledge and belief, the statements contained in this document with respect to these companies are true and correct. To the extent that these statements are not based on my personal knowledge, they are based upon information provided by employees and/or consultants of the companies. Such information has been reviewed in accordance with company practice, and I believe it to be reliable.
Subscribed and sworn before re, a Notary Public in and for the State of Maryland and Q f of Baltimore, this j day of
' tAt
,2013.
WITNESS my Hand and Notarial Seal:
My Commission Expires:
Notao Pulic yb"&
20%
4 Date
Document Control Desk August 6 2013 Page 6 Sincerely, C
Bryan P. Wright STATE OF TO WIT:
CITY OF-I, Bryan P. Wright, state that I am the Senior Vice President and Chief Financial Officer of Exelon Generation Company, LLC, and that to the best of my knowledge and belief, the statements contained in this document are true and correct. To the extent that these statements are not based on my personal knowledge, they are based upon information provided by employees and/or consultants of the Applicants.
Such information has been reviewed in accordance with company practice, and I believe it to be reliable.
§ubscribed and sworn before me, a Notary Public in and for the State of Mg /*t* and CXL of N/4ýttq(this 6o dayof 44A-
,2013.
WITNESS my Hand and Notarial Seal:
Noty Public My Commission Expires:
- ctmý &Pt" M. M- "
Document Control Desk August 6 2013 Page 7 MGK/EMT/bjd Attachments:
(1) Application for Order Approving Transfer of Operating Authority and Conforming License Amendments (2)
Pre-and Post-Transfer Organizational Structures (3)
General Corporate Information Regarding Constellation Energy Nuclear Group, LLC and Exelon Generation Company (4) Form of Nuclear Operating Services Agreement (5)
CENG Operating Agreement Amendments (6)
Projected Income Statements for Licensees (Non-Proprietary Version)
(6A) Projected Income Statements for Licensees (Proprietary Version)
(7) 10 CFR 2.390 Affidavit of Mary G. Korsnick (8)
Regulatory Commitments in This Correspondence cc:
(With Attachment 6A)
B. K. Vaidya, NRC M. C. Thadani, NRC N. S. Morgan, NRC W. M. Dean, NRC Susan Uttal, NRC Office of General Counsel Thomas Fredrichs, Senior Level Advisor for Financial Matters, NRR (Without Attachment 6A)
USNRC, Director, Office of Nuclear Reactor Regulation USNRC, Director, Office of Nuclear Material Safety and Safeguards NRC Senior Resident Inspector - Calvert Cliffs Nuclear Power Plant, Units I and 2 NRC Senior Resident Inspector - Nine Mile Point Nuclear Station, Units 1 and 2 NRC Senior Resident Inspector - R.E. Ginna Nuclear Power Plant S. Gray, Maryland DNR A. L. Peterson, NYSERDA B. Frymire, NYSDPS
ATTACHMENT (1)
APPLICATION FOR ORDER APPROVING TRANSFER OF OPERATING AUTHORITY AND CONFORMING LICENSE AMENDMENTS Enclosure (la) - Proposed Changes to the Facility Operating Licenses and Radioactive Materials License Enclosure (lb) - No Significant Hazards Consideration Determination Constellation Energy Nuclear Group, LLC August 6, 2013
ATTACHMENT (1)
APPLICATION FOR ORDER APPROVING TRANSFER OF OPERATING AUTHORITY AND CONFORMING LICENSE AMENDMENTS APPLICATION FOR ORDER APPROVING TRANSFER OF OPERATING AUTHORITY AND CONFORMING LICENSE AMENDMENTS August 6, 2013 Calvert Cliffs Nuclear Power Plant, Units 1 and 2 Renewed Facility Operating License Nos. DPR-53 and DPR-69 Docket Nos. 50-317 and 50-318 Calvert Cliffs Independent Spent Fuel Storage Installation Materials License No. SNM-2505 Docket No. 72-8 Nine Mile Point Nuclear Station, Units 1 and 2 Renewed Facility Operating License Nos. DPR-63 and NPF-69 Docket Nos. 50-220 and 50-410 R.E. Ginna Nuclear Power Plant Renewed Facility Operating License No. DPR-18 Docket No. 50-244 i
ATTACHMENT (1)
APPLICATION FOR ORDER APPROVING TRANSFER OF OPERATING AUTHORITY AND CONFORMING LICENSE AMENDMENTS
- 1.
INTRODUCTION In accordance with Section 184 of the Atomic Energy Act of 1954, as amended (the Act), 10 CFR 50.80, and 10 CFR 50.90, Constellation Energy Nuclear Group, LLC (CENG), acting on behalf of itself, Exelon Generation Company, LLC (Exelon Generation), and its subsidiary licensees, Calvert Cliffs Nuclear Power Plant, LLC, Nine Mile Point Nuclear Station, LLC, and R.E. Ginna Nuclear Power Plant, LLC (together, Applicants), hereby submits an application seeking U.S.
Nuclear Regulatory Commission (NRC) consent to the direct transfers of operating authority under the following NRC licenses: (1) Calvert Cliffs Nuclear Power Plant, Unit Nos. I & 2, Operating Licenses DPR-53 & DPR-69 and Calvert Cliffs Independent Spent Fuel Storage Installation (ISFSI), Materials License No. SNM-2505; (2) Nine Mile Point Nuclear Station, Unit Nos. 1 & 2, Operating Licenses DPR-63 & NPF-69 and (3) R.E. Ginna Nuclear Power Plant, Operating License DPR-18 (collectively, the Licenses). (The facilities that are the subject of the Licenses are collectively referred to as the Facilities.) Nine Mile Point Nuclear Station and R.E.
Ginna Nuclear Power Plant also operate general license ISFSIs Dkt. No. 72-1036 and Dkt.
No. 72-67), respectively.
CENG also requests that NRC approve conforming administrative amendments to the Licenses in order to reflect the proposed transfers of operating authority. The license amendments should be approved, but not issued until consummation of the transactions to take place contemporaneously with the transfers of operating authority.
A wholly owned subsidiary of Exelon Generation, Constellation Nuclear LLC (CN) is one of two parent companies of CENG.' CN, through wholly owned subsidiaries, has a 50.01% ownership interest. Exelon Generation is a wholly owned subsidiary of Exelon Ventures Company, which is a wholly owned subsidiary of Exelon Corporation (Exelon).
Exelon is the ultimate parent holding company, and its stock is publicly traded on the New York Stock Exchange and widely held. EDF Inc. is the other parent company of CENG, with a 49.99% ownership interest. 2 CENG has three NRC licensee subsidiary companies: (1) Calvert Cliffs Nuclear Power Plant, LLC; (2) Nine Mile Point Nuclear Station, LLC; and (3) R.E. Ginna Nuclear Power Plant, LLC (collectively, the Owner-Licensees), which own and operate the nuclear power plants of the same respective names.3 Calvert Cliffs Nuclear Power Plant (CCNPP), located on the Chesapeake Bay approximately 40 miles south of Annapolis, Maryland, is composed of two units: Unit I is a 2,737 MWt nuclear Exelon Generation owns 100% of its subsidiary CN. CN owns a 49.08% interest in CENG and a 100% interest in CE Nuclear, LLC, which itself owns 0.93% of CENG. Under a proposed restructuring that is pending and expected to be completed in 2013, Exelon Generation would retain direct ownership of a 100% voting interest and a 90% non voting interest ownership in CN. The remaining 10% non-voting interest in CN would be held by Constellation Holdings, LLC, which is a wholly owned subsidiary of Exelon Generation. This restructuring was described by CENG letter dated May 9, 2013 (Adams Accession No. ML13141A408).
2 EDF Inc. is a U.S. corporation organized under the laws of the State of Delaware. EDF Inc. is 82.5% owned by E.D.F. International SAS, a limited company organized under the laws of France, which is in turn a wholly-owned subsidiary of Electricit6 de France SA, a French limited company (EDF). The remaining 17.5%
non controlling ownership interest in EDF Inc. is held by EDF Trading Limited, which is wholly owned by EDF Holdings SAS, which is wholly owned by EDF.
CENG owns a 100% interest in Constellation Nuclear Power Plants, LLC, which owns 100% interests in each of the subsidiary licensees.
1 of 10
ATTACHMENT (1)
APPLICATION FOR ORDER APPROVING TRANSFER OF OPERATING AUTHORITY AND CONFORMING LICENSE AMENDMENTS power plant and Unit 2 is a 2,737 MWt nuclear power plant. Each unit consists of a Combustion Engineering two-loop pressurized water reactor, other associated plant equipment, and related site facilities. Calvert Cliffs Nuclear Power Plant, LLC, is the sole owner and licensed operator for CCNPP pursuant to licenses issued by the NRC. CCNPP is also the site of the Calvert Cliffs ISFSI, which is operated in accordance with a site-specific Part 72 license.
The Nine Mile Point Nuclear Station (NMPNS), located on Lake Ontario, approximately six miles northeast of Oswego, New York, is composed of two units: Unit 1 is a 1,850 MWt nuclear power plant and Unit 2 is a 3,988 MWt nuclear power plant, each consisting of a General Electric boiling water reactor, other associated plant equipment, and related site facilities. Nine Mile Point Nuclear Station, LLC is the owner and licensed operator of NMP Unit 1, and also an owner and the licensed operator for NMP Unit 2.
Two owners currently each own an undivided ownership interest in NMP Unit 2 and entitlements to generating output, in the following percentages:
Nine Mile Point Nuclear Station, LLC 82%
Long Island Power Authority 18%
These same entities pay corresponding shares of the costs of operating NMP Unit 2, but Nine Mile Point Nuclear Station, LLC currently retains control over the operation of the facility and is designated as the licensee with operating authority. NMPNS is also the site of the Nine Mile Point ISFSI, which is operated in accordance with a general license.
R.E. Ginna Nuclear Power Plant (Ginna), located in Ontario, New York, approximately 20 miles northeast of Rochester, is a single unit, 1,775 MWt nuclear power plant, consisting of a Westinghouse two-loop pressurized water reactor, other associated plant equipment, and related site facilities. R.E. Ginna Nuclear Power Plant, LLC is the sole owner and licensed operator for Ginna, pursuant to a license issued by the NRC. Ginna is also the site of the Ginna ISFSI, which is operated in accordance with a general license.
Exelon, EDF and CENG have agreed to consolidate the operation of the CENG Facilities into the Exelon Generation operating organization. This consolidation will allow the pooling of resources and the more efficient and effective operation of the Facilities as part of the Exelon Generation nuclear fleet. As a result of the proposed license transfers, Exelon Generation will assume direct licensed responsibility for the operation of the Facilities and will be able to operate the CENG and Exelon Generation assets on an integrated and seamless basis. The ownership of the CENG plants will not be affected. However, EDF will have a "put option" to sell its 49.99% stake in CENG to Exelon Generation between 2016 and 2022 at fair market value. If this put option were exercised, Exelon Generation would acquire 100% ownership of the Facilities, subject to any required NRC approval at the time.
A chart showing the simplified organizational structure of the licensees before and after the transfers can be found in Attachment (2).
The proposed transfers will not adversely affect the financial qualifications of the Owner-Licensees to own the Facilities in accordance with the existing Licenses. The proposed transfers also will not result in any adverse changes to the decommissioning funding assurance for the Facilities.
2 of 10
ATTACHMENT (1)
APPLICATION FOR ORDER APPROVING TRANSFER OF OPERATING AUTHORITY AND CONFORMING LICENSE AMENDMENTS The proposed transfers will not result in the licenses becoming owned, controlled, or dominated by a foreign entity. Exelon Generation and its parents are domestic entities, and its assumption of the role of licensed operator will not have adverse implications for foreign ownership, control, or domination (FOCD).
The ownership of CENG and the Facilities will not be affected. The existing FOCD negation measures for CENG will not be changed.
No physical changes will be made to the Facilities, and there will be no adverse changes in day-to-day operations as a result of the proposed transfers. The proposed transfers will neither have any adverse impact on the public health and safety, nor be inimical to the common defense and security. In summary, the proposed transfers will be consistent with the requirements set forth in the Act, NRC regulations, and the relevant Licenses and orders. Applicants therefore respectfully request that the NRC consent to the transfers in accordance with 10 CFR 50.80 and 10 CFR 72.50.
The financial information provided in a separately bound Addendum as Attachment (6A) is confidential commercial information that Applicants request be withheld from public disclosure pursuant to 10 CFR 2.390(a)(4) and 10 CFR 9.17(a)(4). A redacted, non-proprietary version is provided in Attachment (6). An affidavit supporting the request for withholding Attachment (6A) from public disclosure is also provided as Attachment (7).
II.
STATEMENT OF PURPOSE OF THE TRANSFERS AND NATURE OF THE TRANSACTION MAKING THE TRANSFERS NECESSARY OR DESIRABLE A.
Summary Description of the Transfer of Operating Authority Under the present operating arrangements, each of the Facilities is operated by its Owner-Licensee. Each Owner-Licensee is a single, member-managed limited liability company that is owned and controlled by CENG, so that the Facilities are operated through the Owner-Licensees by CENG.
Following the proposed transfers, Exelon Generation will become the licensed operator and will integrate the operation of the CENG nuclear fleet into the existing operation of Exelon Generation's nuclear fleet.
Exelon Generation and the Owner-Licensees will enter into a Nuclear Operating Service Agreement (NOSA) pursuant to which Exelon Generation will assume operating responsibility for the Facilities, and the Owner-Licensees will retain responsibility for paying for the costs of operation and decommissioning.
B.
Nature of the Transaction Making Transfers Desirable The integration of the operation of CENG's nuclear fleet with that of Exelon Generation will allow consolidated operation of the two fleets.
The seamless integration of the Facilities into Exelon Generation's operations will create a single organization with responsibility over all of the plants partially or fully owned by Exelon Generation. As the operator of the largest nuclear fleet in the U.S., Exelon Generation will bring substantial experience, knowledge, and skills to the operation of the CENG fleet. This structure will also allow for the elimination of duplication of organizations and enhance sharing of resources and operating experience.
3 of 10
ATTACHMENT (1)
APPLICATION FOR ORDER APPROVING TRANSFER OF OPERATING AUTHORITY AND CONFORMING LICENSE AMENDMENTS
- 11.
GENERAL CORPORATE INFORMATION REGARDING EXELON GENERATION Detailed information regarding the business and management of Exelon Corporation (Exelon) and its subsidiaries including Exelon Generation is provided in the 2012 Annual Report (SEC Form 10-K) dated February 22, 2013, which is available on the internet at:
http://www.sec.gov/Archives/edgar/data/I 168165/000119312513069749/d474199d 1Ok.htm or http://www.exeloncorp.com/performance/investors/financialreports.aspx Exelon Generation, through its subsidiaries, is a major generator of electric power and a leading supplier of competitive electricity, with a current power generation portfolio of approximately 44,000 megawatts. Exelon Generation indirectly owns 50.01% of CENG. The Owner-Licensees own and currently operate CENG's fleet of nuclear generating plants.
Exelon Generation operates the largest nuclear fleet in the United States.
During 2012 and 2011, the nuclear generating facilities operated by Exelon Generation achieved capacity factors of 92.7% and 93.3%, respectively.
The general corporate information required by 10 CFR 50.33(d)(3) regarding the Licensees and their parent companies is provided in Attachment (3).
IV.
FOREIGN OWNERSHIP OR CONTROL Exelon, the ultimate parent holding company of Exelon Generation, is currently a publicly traded company. Its securities are widely held and traded on the New York Stock Exchange. Section 13(d) of the Securities Exchange Act of 1934, as amended, 15 U.S.C. 78m(d), requires that a person or entity that owns or controls more than five percent of the securities of a company must file notice with the SEC. Based upon filings with the SEC, Exelon is not aware of any alien, foreign corporation, or foreign government that holds or may hold more than five percent of the securities of Exelon.
Accordingly, the proposed transfer of operating authority to Exelon Generation at issue in this application does not raise any new issues related to foreign ownership, control, or domination. In fact, the proposed transfers will remove operating authority from three licensees which are currently 49.99% indirectly owned by a foreign corporation, and vest that authority with a publicly traded U.S. company. As stated in the NRC's Standard Review Plan on Foreign Ownership, Control, or Domination, increased scrutiny is required when a foreign owned entity seeks operating authority of a licensee.4 By granting operating authority to a company such as Exelon Generation with no foreign owners with greater than 5% control of the corporation, the application does not require increased FOCD scrutiny.
In reviewing Exelon's prior acquisition of Constellation Energy Group, Inc. (CEG), the NRC evaluated whether that proposed transaction would result in CENG or the Owner-Licensees being owned, controlled, or dominated by an alien, foreign corporation, or foreign government within the meaning of Sections 103d or 104d of the Atomic Energy Act, or the licensee eligibility requirements of 10 CFR 50.38.
After reviewing the license transfer application, the NRC concluded that it did not know or have reason to believe that CENG and the Owner-Licensees Final Standard Review Plan on Foreign Ownership, Control, or Domination, 64 Fed. Reg. 52,355, 52,358 (Sept. 28, 1999).
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ATTACHMENT (1)
APPLICATION FOR ORDER APPROVING TRANSFER OF OPERATING AUTHORITY AND CONFORMING LICENSE AMENDMENTS would be owned, controlled or dominated by an alien, a foreign corporation, or a foreign government. The present proposed transfer of operating authority does not change the ownership of the Facilities or alter the bases for the NRC's prior approval of the indirect transfer.
The NRC Orders approving the license transfers associated with Exelon's acquisition of CEG were based at least in part upon negation measures contained in the limited liability company agreement for CENG, which is currently the Third Amended and Restated Operating Agreement dated as of March 12, 2012 (CENG Operating Agreement). These negation measures ensure that CENG and the Owner-Licensees will not become owned, controlled, or dominated by an alien, a foreign corporation, or a foreign government. According to Condition 5 of the NRC's February 15, 2012 Orders granting the indirect transfer of control of the licenses pursuant to the merger of Exelon Generation and CEG the "[CENG] Operating Agreement may not be modified in any respect concerning decisionmaking authority over nuclear safety, security, and reliability without the prior written consent of the Director, Office of Nuclear Reactor Regulation." In connection with the present proposed transfer of operating authority, several changes to the CENG Operating Agreement are to be implemented, and CENG is seeking confirmation that the proposed changes are authorized.
These changes will not adversely impact the negation measures previously adopted with respect to the operations of CENG and its subsidiaries.
The above information demonstrates that the transfers of operating authority to Exelon Generation will not result in the licensees being owned, controlled, or dominated by an alien, foreign corporation, or foreign government within the meaning of Sections 103d or 104d of the Atomic Energy Act, or the licensee eligibility requirements of 10 CFR 50.38.
V.
TECHNICAL QUALIFICATIONS Exelon Generation is the largest nuclear operator in the United States.
It currently operates 10 nuclear plants consisting of 17 units which produce approximately 15,000 MW of electricity.
As the largest nuclear fleet operator in the United States, Exelon Generation will make significant nuclear operational and management experience, resources, and expertise available to the Facilities. The overall technical resources available to the Facilities will be enhanced as a result of Exelon Generation's acquiring operating authority.
VI.
FINANCIAL QUALIFICATIONS The proposed transfers of operating authority will have no adverse effect on the financial qualifications of the Owner-Licensees. Rather, the integrated fleet operation is expected to lower costs, improve performance, and thereby enhance the financial qualifications of the Owner-Licensees.
Under the terms of the NOSA, Exelon Generation will recover its costs of operating the Facilities from the Owner-Licensees.
In addition, Exelon Generation has an investment grade credit rating, and it is financially qualified based upon its own revenues and assets.
Historical financial information regarding Exelon and its subsidiaries, including Exelon Generation, is provided in the 2012 Annual Report for Exelon filed with the Securities and Exchange Commission and available on the internet at:
httv://www.sec.gov/Archives/edzar/data/I 168165/000119312513069749/d474199d 1Ok.htm 5 of 10
ATTACHMENT (1)
APPLICATION FOR ORDER APPROVING TRANSFER OF OPERATING AUTHORITY AND CONFORMING LICENSE AMENDMENTS The information contained in this parent company report supports the conclusion that Exelon Generation and the Owner-Licensees possess, or have reasonable assurance of obtaining, the funds necessary to cover the operating costs of CCNPP, Ginna, NMP Unit 1, and a pro rata share of the estimated operating costs of NMP Unit 2 associated with a total 82% undivided ownership interest, for the period of their respective Licenses in accordance with 10 CFR 50.33(0(2) and the Standard Review Plan on Power Reactor Licensee Financial Qualifications and Decommissioning Funding Assurance (NUREG-1577, Revision 1).
A.
Projected Operating Revenues and Operating Costs Five year pro forma financial projections for Exelon Generation and for each of the Owner-Licensee entities are provided in Attachment (6A) for the years 2014 through 2018. Attachment (6A) is proprietary, because it contains confidential commercial and financial information as described in the Affidavit of Mary G. Korsnick, which is provided in Attachment (7).
CENG requests that Attachment (6A) be withheld from public disclosure pursuant to 10 CFR 9.17(a)(4) and the policy reflected in 10 CFR 2.390. A non-proprietary version of Attachment (6A) suitable for public disclosure is provided as Attachment (6).
This proprietary financial information contained in Attachment (6A) demonstrates that CCNPP, NMPNS, and Ginna will remain financially qualified to hold their respective Licenses, and Exelon Generation is financially qualified to be the operator Licensee for the Facilities.
The projected income statements show that the anticipated revenues from sales of energy and capacity from CCNPP, NMPNS, and Ginna, together with additional sources of financial support from Exelon Generation and E.D.F. International SAS, provide reasonable assurance of an adequate source of funds to meet anticipated expenses for these plants. The projected income statements for CCNPP, NMPNS and Ginna and the available additional financial support also demonstrate their financial qualifications to maintain their ISFSI facilities.
Under the terms of the NOSA, Exelon Generation will recover its costs of operation for the Facilities from the Owner-Licensees.
Because the Owner-Licensees are financially qualified, Exelon Generation will be able to cover its costs of operation. Regardless, Exelon Generation's strong consolidated net income as indicated in the attached projected income statement for Exelon Generation in Attachment (6A) demonstrate that Exelon Generation and the Owner-Licensees will continue to possess the requisite financial qualifications in accordance with NRC requirements.
Consistent with CENG's current financial assurance mechanisms and prior NRC Orders approving license transfers, Exelon Generation and E.D.F. International SAS, EDF Inc.'s direct parent
- company, currently maintain support agreements with the Owner-Licensees. 5 Exelon Generation provides financial support in the amount of approximately $205 million, and E.D.F. International SAS provides financial support in the amount of approximately $145 million, for a total of approximately $350 million.
The total amounts of funding available under the existing support agreements from See Orders Approving Corporate Merger Between Exelon Corporation and Constellation Energy Group. Inc.,"
February 15, 2012, and Safety Evaluation at 7 (ADAMS Accession No. ML113560381).
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ATTACHMENT (1)
APPLICATION FOR ORDER APPROVING TRANSFER OF OPERATING AUTHORITY AND CONFORMING LICENSE AMENDMENTS Exelon Generation and E.D.F. International SAS provide sufficient funds to cover the estimated fixed operating and maintenance expenses for simultaneous outages of all units at two of the three sites for at least six months, (the line items "O&M, Non-Outage,"
"O&M Refueling Outage" and "Property Taxes"). This is consistent with the guidance in NUREG-1577 (Revision 1), Standard Review Plan on Power Reactor Licensee Financial Qualifications and Decommissioning Funding Assurance.
The support agreements provide additional assurance of the financial qualifications of CENG and the Owner-Licensees and the amounts are sufficient to cover any projected years where net income for any given site is expected to be a loss, including the projected losses using a sensitivity analysis with a 10% reduction in assumed MWh sales.
As additional financial assurance, the Owner-Licensees have continued access to equity contributions and member loans or advances, as provided in the CENG Operating Agreement.
Further, CENG also maintains a cash pooling arrangement with an Inter-Company Credit Agreement that provides an additional vehicle for managing the working capital needs of the Owner-Licensees, as previously reviewed by the NRC. This includes a Master Demand Note confirming the availability of at least $85 million for R.E. Ginna Nuclear Power Plant LLC as described in CENG's letter dated October 28, 2009 (Adams Accession No. ML093030288). A form of this Master Demand Note was provided by letter dated October 26, 2009 (Adams Accession No. ML093000506). This will remain in effect following the proposed transfer of operating authority.
As explained to the NRC during the license transfer associated with the Exelon acquisition of CEG, all the Owner-Licensees are members of the CENG cash pool and have access to it on an ongoing basis.6 The cash pool, which is coordinated by CENG, provides funds to any Licensee to meet operating and maintenance expenses whenever such needs are identified. Each day, each member of the cash pool will provide CENG with its cash position for that day. Each day, each member will also transfer to the pool any excess cash. Any such excess cash is used first to provide funds to any other Licensee requiring it, and the remainder is invested.
The CENG cash pooling arrangement will provide an efficient vehicle for managing working capital by allowing excess or surplus cash to be used by any CENG plant whenever funds are needed. CENG and the Owner-Licensees will continue the cash pooling arrangement following the closing of the proposed transaction.
In summary, the proposed transfers of operating authority will not affect the, financial qualifications for the Owner-Licensees. The pro forma financial statements provided in Attachment (6A) demonstrate that Exelon Generation and the Owner-Licensees will remain financially qualified to own and operate the Facilities. The financial support agreements provided to the Owner-Licensees, as described above, will provide additional financial assurance with respect to the estimated fixed operating and maintenance expenses for a six-month outage.
6 See Application for Approval of Indirect transfer of Control of Licenses, Supplemental Information dated May 12, 2011, Attachment (1) at 10 (ADAMS Accession No. MLL 1 138A159).
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ATTACHMENT (1)
APPLICATION FOR ORDER APPROVING TRANSFER OF OPERATING AUTHORITY AND CONFORMING LICENSE AMENDMENTS B.
Decommissioning Funding Calvert Cliffs Nuclear Power Plant, LLC currently provides decommissioning funding assurance for CCNPP through existing prepaid decommissioning trust fund assets, in accordance with 10 CFR 50.75(e)(1)(i). Nine Mile Point Nuclear Station, LLC currently provides decommissioning funding assurance for NMP Unit I and its share of NMP Unit 2 through existing prepaid decommissioning trust fund assets in accordance with 10 CFR 50.75(e)(1)(i). R.E. Ginna Nuclear Power Plant, LLC provides decommissioning funding assurance for Ginna through its existing prepaid decommissioning trust fund assets in accordance with 10 CFR 50.75(e)(1)(i).
Information regarding the status of decommissioning funding for CCNPP, NMPNS, and Ginna as of December 31, 2012 was reported to the NRC in accordance with 10 CFR 50.75(f)(1) in CENG's Biennial Report: Status of Decommissioning Funding, dated March 27, 2013 (ADAMS Accession No. ML13098A084). The proposed transfers of operating authority will not affect the decommissioning funding arrangements previously reported for the Facilities. The Owner-Licensees will continue to maintain their existing decommissioning trust funds segregated from their assets and outside their administrative control in accordance with the requirements of 10 CFR 50.75(e)(1). The trustee for all of the decommissioning funds will remain the Bank of New York Mellon.
As is demonstrated above, in accordance with 10 CFR 50.75, there continues to be reasonable assurance that the Applicants will have the funds necessary to cover the estimated decommissioning costs of CCNPP, Ginna, and NMP Unit 1, and the relevant share of the decommissioning costs of NMP Unit 2 at the end of licensed operation.
Information regarding the status of ISFSI decommissioning funding plans for CCNPP, NMPNS, and Ginna were provided by letter dated December 17, 2012 pursuant to 10 CFR 72.30(b) (ADAMS Accession No. ML123550040). The proposed transfers do not involve any change to that information.
VII.
ANTITRUST INFORMATION This Application post-dates the issuance of the Licenses, and therefore no antitrust review is required or authorized. Based upon the NRC's decision in Kansas Gas and Electric Co., et al.
(Wolf Creek Generating Station, Unit 1), CLI-99-19, 49 NRC 441 (1999), the Atomic Energy Act of 1954, as amended, does not require or authorize antitrust reviews of post-operating license transfer applications.
VIII.
RESTRICTED DATA AND CLASSIFIED NATIONAL SECURITY INFORMATION The proposed transfers of operating authority does not involve any Restricted Data or other Classified National Security Information or result in any change in access to such Restricted Data or Classified National Security Information. The existing restrictions on access to Restricted Data and Classified National Security Information are unaffected by the proposed transfer. In compliance with Section 145(a) of the Act, the Applicants agree that restricted or classified defense information will not be provided to any individual until the Office of Personnel Management investigates and reports to the NRC on the character, associations, and loyalty of 8 of 10
ATTACHMENT (1)
APPLICATION FOR ORDER APPROVING TRANSFER OF OPERATING AUTHORITY AND CONFORMING LICENSE AMENDMENTS such individual, and the NRC determines that permitting such person to have access to Restricted Data will not endanger the common defense and security of the United States.
IX.
ENVIRONMENTAL CONSIDERATIONS The requested consent to transfer operating authority for the Facilities' under the Licenses is exempt from environmental review because it falls within the categorical exclusion contained in 10 CFR 51.22(c)(2 1) for which neither an Environmental Assessment nor an Environmental Impact Statement is required. Moreover, the proposed transfers do not directly affect the actual operation of the Facilities in any substantive way. The proposed transfers do not involve an increase in the amounts, or a change in the types, of any radiological effluents that may be allowed to be released off-site, and involve no increase in the amounts or change in the types of non-radiological effluents that may be released off-site. Further, there is no increase in the individual or cumulative operational radiation exposure, and the proposed direct transfer has no environmental impact.
X.
PRICE-ANDERSON INDEMNITY AND NUCLEAR INSURANCE The proposed transfers do not affect the existing Price-Anderson indemnity agreements for CCNPP, NMPNS, and Ginna, and do not affect the required nuclear property damage insurance pursuant to 10 CFR 50.54(w) and nuclear energy liability insurance pursuant to Section 170 of the Atomic Energy Act and 10 CFR Part 140. However, Applicants hereby request that the Price-Anderson indemnities be amended to include Exelon Generation as a licensee for the Facilities and to name Exelon Generation as an indemnified entity.
Exelon Generation and the Owner-Licensees will maintain all required nuclear property damage insurance and nuclear energy liability insurance.
In addition, the Owner-Licensees' annual reporting in compliance with 10 CFR 140.21 (e) provides reasonable assurance regarding their ongoing ability to pay their shares of any annual retrospective premium.
Also, the Owner-Licensees' financial information submitted with or referenced in this Application provides assurance of the ability to pay deferred premiums in accordance with 10 CFR 140.21 (f).
XI.
EFFECTIVE DATE AND OTHER REQUIRED REGULATORY APPROVALS Subject to the receipt of the required regulatory approvals, the Applicants wish to proceed with the proposed transfers of operating authority promptly and have targeted a completion by March 31, 2014. Accordingly, the Applicants respectfully request that the NRC review this Application on a schedule that will permit the NRC to issue an Order consenting to the transfers and approving the conforming license amendments as promptly as possible and in any event by March 1, 2014. The Applicants also request approval to amend the CENG Operating Agreement as described above, on the same schedule. Once approved, the Applicants will provide at least two business days Notice prior to the date planned to consummate the proposed transaction and transfer of operating authority so that NRC can issue the license amendments on that date. This is a regulatory commitment.
We are prepared to work closely with the NRC staff to help expedite the review of the Application. We further request that the consent to license transfers be immediately effective upon issuance and that it permit the proposed transaction to be implemented at any time within one year of the date of approval of this Application.
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ATTACHMENT (1)
APPLICATION FOR ORDER APPROVING TRANSFER OF OPERATING AUTHORITY AND CONFORMING LICENSE AMENDMENTS XII.
CONCLUSION Based upon the foregoing information, Applicants respectfully request that the NRC issue an Order consenting to the license transfers, as necessary, related to Facility Operating Licenses Nos.
DPR-53, DPR-69, DPR-63, NPF-69, and DPR-18 and Materials License No. SNM-2505, and approving conforming license amendments thereto.
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Enclosure (la)
PROPOSED CHANGES TO THE FACILITY OPERATING LICENSES AND RADIOACTIVE MATERIALS LICENSE Constellation Energy Nuclear Group, LLC August 6, 2013
ENCLOSURE (la)
PROPOSED CHANGES TO THE FACILITY OPERATING LICENSES AND RADIOACTIVE MATERIALS LICENSE CALVERT CLIFFS NUCLEAR POWER PLANT, UNIT 1 License No. DPR-53
ENCLOSURE (la)
PROPOSED CHANGES TO THE FACILITY OPERATING LICENSES AND RADIOACTIVE MATERIALS LICENSE RENEWED FACILITY OPERATING LICENSE CALVERT CLIFFS NUCLEAR POWER PLANT, UNIT I CALVERT CLIFFS NUCLEAR POWER PLANT, LLC EXELON GENERATION COMPANY, LLC DOCKET NO. 50-317 Renewed License No. DPR-53 1.
The U.S. Nuclear Regulatory Commission (Commission), having previously made the findings set forth in License No. DPR-53 issued on July 31,1974, has now found that:
A.
The application to Renewed License No. DPR-53 filed by Baltimore Gas and Electric Company* complies with the standards and requirements of the Atomic Energy Act of 1954, as amended (the Act), and the Commission's rules and regulations set forth in 10 CFR Chapter I, and all required notifications to other agencies or bodies have been duly made; B.
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), 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 license will continue to be conducted in accordance with the current licensing basis, as defined in 10 CFR 54.3, for the Calvert Cliffs Nuclear Power Plant, Unit 1 (facility), and that any changes made to the plant's current licensing basis in order to comply with 10 CFR 54.29(a) are in accord with the Act and the Commission's regulations; C.
There is reasonable assurance: (i) that the activities authorized by this renewed 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 applicable regulations set forth in 10 CFR Chapter I, except as exempted from compliance; D.
The Calvert Cliffs Nuclear Power Plant, LLC and Exelon Generation Company, LLC**
(Exelon Generation the keense ) has have satisfied the applicable provisions of 10 CFR Part 140, "Financial Protection Requirements and Indemnity Agreements";
E.
The renewal of this license will not be inimical to the common defense and security or the health and safety of the public; and
- By Order dated October 9, 2009, as superseded by Order dated October 30, 2009, the transfer of this license to Calvert Cliffs Nuclear Power Plant, LLC, was approved. By Order dated
, the transfer of the operating authority under this license to Exelon Generation Company, LLC was approved.
- Exelon Generation is authorized to act for Calvert Cliffs Nuclear Power Plant, LLC and has exclusive responsibility and control over the physical possession, operation, and maintenance of the facility.
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ENCLOSURE (la)
PROPOSED CHANGES TO THE FACILITY OPERATING LICENSES AND RADIOACTIVE MATERIALS LICENSE F.
After weighing the environmental, economic, technical, and other benefits of the facility against environmental and other costs, and considering available alternatives, the renewal of this license is in accordance with 10 CFR Part 51 and all applicable requirements have been satisfied.
- 2.
On the basis of the foregoing findings regarding this facility, Facility Operating License No.
DPR-53, issued on July 31, 1974, is superseded by Renewed Facility Operating License No.
DPR-53, which is hereby issued to Calvert Cliffs Nuclear Power Plant, LLC and Exelon Generation to read as follows:
A.
This license applies to the Calvert Cliffs Nuclear Power Plant, Unit 1, a pressurized water reactor and associated equipment (the facility), owned by Calvert Cliffs Nuclear Power Plant, LLC. The facility is located in Calvert County, Maryland, and is described in the Woieen'see Final Safety Analysis Report (FSAR), as supplemented and amended, and the lieensee's Environmental Report, as supplemented and amended.
B.
Subject to the conditions and requirements incorporated herein, the Commission hereby licenses Calvye" Clif&h Xnulr.r Po...
Plant, LL-C:
(1)
Pursuant to Section 104b of the Act and 10 CFR Part 50, "Domestic Licensing of Production and Utilization Facilities," (a) Calvert Cliffs Nuclear Power Plant, LLC to possess, and (b) Exelon Generation to possess, use, and operate the facility at the designated location in Calvert County, Maryland, in accordance with the procedures and limitations set forth in this license; (2)
Exelon Generation pursuant to the Act and 10 CFR Part 70, 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, and described in the Final Safety Analysis Report, as supplemented and amended; (3)
Exelon Generation pursuant to the Act and 10 CFR Parts 30, 40, and 70, 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)
Exelon Generation pursuant to the Act and 10 CFR Parts 30,40, and 70, to receive, possess, and use, in amounts as required, any byproduct, source, and 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)
Exelon Generation pursuant to the Act and 10 CFR Parts 30 and 70 to possess, but not separate, such byproduct and special nuclear materials as may be produced by the operation of the facility.
C.
This license is deemed to contain and is subject to the conditions set forth in 10 CFR Chapter I and is subject to all applicable provisions of the Act, and the rules, regulations, 2 of 5
ENCLOSURE (la)
PROPOSED CHANGES TO THE FACILITY OPERATING LICENSES AND RADIOACTIVE MATERIALS LICENSE and orders of the Commission, now or hereafter applicable; and is subject to the additional conditions specified and incorporated below:
(1)
Maximum Power Level T12he liesee Exelon Generation is authorized to operate the facility at steady-state reactor core power levels not in excess of 2737 megawatts-thermal in accordance with the conditions specified herein.
(2)
Technical Specifications The Technical Specifications contained in Appendices A and B, as revised through Amendment No. 302, are hereby incorporated into this license. Exelon Generation 4 shall operate the facility in accordance with the Technical Specifications.
(a)
For Surveillance Requirements (SRs) that are new, in Amendment 227 to Facility Operating License No. DPR-53, the first performance is due at the end of the first surveillance interval that begins at implementation of Amendment 227. For SRs that existed prior to Amendment 227, including SRs with modified acceptance criteria and SRs whose frequency of performance is being extended, the first performance is due at the end of the first surveillance interval that begins on the date the Surveillance was last performed prior to implementation of Amendment 227.
(3)
Additional Conditions The Additional Conditions contained in Appendix C as revised through Amendment No. 297 are hereby incorporated into this license. GaN,0i4-Gliffi Nuclear Power-Plant, LLC Exelon Generation shall operate the facility in accordance with the Additional Conditions.
(4)
Secondary Water Chemistry Monitoring Program Exelon Generation The CalveArt Cliffs Nuolear Pewer Plant, LLC, shall implement a secondary water chemistry monitoring program to inhibit steam generator tube degradation. This program shall include:
- a.
Identification of a sampling schedule for the critical parameters and control points for these parameters;
- b.
Identification of the procedures used to quantify parameters that are critical to control points; 3 of 5
ENCLOSURE (la)
PROPOSED CHANGES TO THE FACILITY OPERATING LICENSES AND RADIOACTIVE MATERIALS LICENSE
- c.
Identification of process sampling points;
- d.
Procedure for recording and management of data;
- e.
Procedures defining corrective actions for off control point chemistry conditions; and f,
A procedure identifying the authority responsible for the interpretation of the data and the sequence and timing of administrative events required to initiate corrective action.
(5)
Mitigation Strategy Exelon Generation.:'Me CGe-rtU Cliff4 M-ule-Ar Powew Pleant, LLC, shall develop and maintain strategies for addressing large fires and explosions 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 D.
Exelon Generation The-4iemsee 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 contain Safeguards Information protected under 10 CFR 73.21, is entitled:
"Calvert Cliffs Nuclear Power Plant Security Plan, Training and Qualification Plan, and Safeguards Contingency Plan, Revision 1" submitted May 19, 2006.
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ENCLOSURE (la)
PROPOSED CHANGES TO THE FACILITY OPERATING LICENSES AND RADIOACTIVE MATERIALS LICENSE Exelon Generation The ieensee shall fully implement and maintain in effect all provisions of the Commission-approved cyber security plan (CSP), including changes made pursuant to the authority of 10 CFR 50.90 and 10 CFR 50.54(p).
The licensee's CSP was approved by License Amendment No. 298.
E.
Exelon Generation T shall implement and maintain in effect all provisions of the approved fire protection program as described in the Updated Final Safety Analysis Report for the facility and as approved in the SER dated September 14, 1979 and Supplements dated October 2, 1980; March 18, 1982; and September 27, 1982; and Exemptions dated August 16, 1982; April 21, 1983; March 15, 1984; August 22, 1990; and April 7, 1999 subject to the following provision: Exelon Generation 4he-heense 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.
F.
At the time of the next scheduled update to the FSAR required pursuant to 10 CFR 50.71 (e)(4) following the issuance of this renewed license, Exelon Generation the-ieeanee-shall update the FSAR to include the FSAR supplement submitted pursuant to 10 CFR 54.21(d), as amended and supplemented by the program descriptions in Appendix E to the Safety Evaluation Report, NUREG-1705. Until that FSAR update is complete, Exelon Generation 4he 14eepAee-may make changes to the programs described in Appendix E without prior Commission approval, provided that the licensee evaluates each such change pursuant to the criteria set forth in 10 CFR 50.59 and otherwise complies with the requirements in that section.
G.
Any future actions listed in Appendix E to the Safety Evaluation Report, NUREG-1705, shall be included in the FSAR. Exelon Generation The ieefiee shall complete these actions by July 31, 2014, except for the volumetric inspections of the control element drive mechanisms, which must be completed no later than 2029 for Unit I (Appendix E, Item 65).
H.
This renewed license is effective as of the date of issuance and shall expire at midnight on July 31, 2034.
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ENCLOSURE (la)
PROPOSED CHANGES TO THE FACILITY OPERATING LICENSES AND RADIOACTIVE MATERIALS LICENSE CALVERT CLIFFS NUCLEAR POWER PLANT UNIT 1 TECHNICAL SPECIFICATIONS
Appendix C Additional Conditions Facility Operatinq License No. DPR-53 Exelon Generation (the licensee or Company) shall comply with the following conditions on the schedule noted below:
I Amendment Number 227 Additional Condition Baltimore Gas and Electric Company (BGE) is authorized to relocate certain Technical Specification requirements to licensee-controlled documents.
Implementation of this Amendment shall include the relocation of these requirements to the appropriate documents as described in the licensee's application dated December 4, 1996, as supplemented by letters dated March 27, June 9, June 18, July 21, August 14, August 19, September 10, October 6, October 20, October 23, November 5, 1997, and January 12, January 28, and March 16, 1998, evaluated in the NRC staff's Safety Evaluation enclosed with this amendment.
BGE is authorized to incorporate in the UFSAR certain changes regarding Main Steam Line Break, Steam Generator Tube Rupture, Seized Rotor, and Boron Dilution Analyses.
The decommissioning trust agreement for Calvert Cliffs, Unit 1 at the time the license transfer to the licensee from BGE is effected, is subject to the following:
(a)
The decommissioning trust agreement must be in a form acceptable to the NRC.
Implementation Date This amendment is effective immediately and shall be implemented by August 31, 1998.
The updated UFSAR shall be implemented within 6 months after restart from the spring 1998 refueling outage.
To be implemented at time the license transfer to the licensee from BGE is effected.
228 237 Amendment No. 295
ENCLOSURE (la)
PROPOSED CHANGES TO THE FACILITY OPERATING LICENSES AND RADIOACTIVE MATERIALS LICENSE CALVERT CLIFFS NUCLEAR POWER PLANT, UNIT 2 License No. DPR-69
ENCLOSURE (la)
PROPOSED CHANGES TO THE FACILITY OPERATING LICENSES AND RADIOACTIVE MATERIALS LICENSE RENEWED FACILITY OPERATING LICENSE CALVERT CLIFFS NUCLEAR POWER PLANT, UNIT 2 CALVERT CLIFFS NUCLEAR POWER PLANT, LLC EXELON GENERATION COMPANY, LLC DOCKET NO. 50-318 Renewed License No. DPR-69 I1.
The U.S. Nuclear Regulatory Commission (Commission), having previously made the findings set forth in License No. DPR-69 issued on November 30, 1976, has now found that:
A.
The application to Renewed License No. DPR-69 filed by Baltimore Gas and Electric Company* complies with the standards and requirements of the Atomic Energy Act of 1954, as amended (the Act), and the Commission's rules and regulations set forth in 10 CFR Chapter I, and all required notifications to other agencies or bodies have been duly made; B.
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), 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 license will continue to be conducted in accordance with the current licensing basis, as defined in 10 CFR 54.3, for the Calvert Cliffs Nuclear Power Plant, Unit 2 (facility), and that any changes made to the plant's current licensing basis in order to comply with 10 CFR 54.29(a) are in accord with the Act and the Commission's regulations; C.
There is reasonable assurance: (i) that the activities authorized by this renewed 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 applicable regulations set forth in 10 CFR Chapter I, except as exempted from compliance; D.
The Calvert Cliffs Nuclear Power Plant, LLC and Exelon Generation Company, LLC**
(Exelon Generation the-ieensee) has have satisfied the applicable provisions of 10 CFR Part 140, "Financial Protection Requirements and Indemnity Agreements";
E.
The renewal of this license will not be inimical to the common defense and security or the health and safety of the public; and
- By Order dated October 9, 2009, as superseded by Order dated October 30, 2009, the transfer of this license to Calvert Cliffs Nuclear Power Plant, LLC, was approved. By Order dated
, the transfer of the operating authority under this license to Exelon Generation Company, LLC was approved.
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ENCLOSURE (la)
PROPOSED CHANGES TO THE FACILITY OPERATING LICENSES AND RADIOACTIVE MATERIALS LICENSE
- Exelon Generation is authorized to act for Calvert Cliffs Nuclear Power Plant, LLC and has exclusive responsibility and control over the physical possession, operation, and maintenance of the facility.
F.
After weighing the environmental, economic, technical, and other benefits of the facility against environmental and other costs, and considering available alternatives, the renewal of this license is in accordance with 10 CFR Part 51 and all applicable requirements have been satisfied.
- 2.
On the basis of the foregoing findings regarding this facility, Facility Operating License No.
DPR-69, issued on November 30, 1976, is superseded by Renewed Facility Operating License No. DPR-69, which is hereby issued to Calvert Cliffs Nuclear Power Plant, LLC and Exelon Generation to read as follows:
A.
This license applies to the Calvert Cliffs Nuclear Power Plant, Unit 2, a pressurized water reactor and associated equipment (the facility), owned by Calvert Cliffs Nuclear Power Plant, LLC. The facility is located in Calvert County, Maryland, and is described in the Jieisoeee Final Safety Analysis Report (FSAR), as supplemented and amended, and the heegw..s Environmental Report, as supplemented and amended.
B.
Subject to the conditions and requirements incorporated herein, the Commission hereby licenses Calvrt. Cliffi Nuwefar Power Plant, LLC:
(1)
Pursuant to Section 104b of the Act and 10 CFR Part 50, "Domestic Licensing of Production and Utilization Facilities," (a) Calvert Cliffs Nuclear Plant, LLC to possess, and (b) Exelon Generation to possess, use, and operate the facility at the designated location in Calvert County, Maryland, in accordance with the procedures and limitations set forth in this license; (2)
Exelon Generation pursuant to the Act and 10 CFR Part 70, 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, and described in the Final Safety Analysis Report, as supplemented and amended; (3)
Exelon Generation pursuant to the Act and 10 CFR Parts 30,40, and 70, 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)
Exelon Generation pursuant to the Act and 10 CFR Parts 30, 40, and 70, to receive, possess, and use, in amounts as required, any byproduct, source, and 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)
Exelon Generation pursuant to the Act and 10 CFR Parts 30 and 70 to possess, but not separate, such byproduct and special nuclear materials as may be produced by the operation of the facility.
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ENCLOSURE (la)
PROPOSED CHANGES TO THE FACILITY OPERATING LICENSES AND RADIOACTIVE MATERIALS LICENSE C.
This license is deemed to contain and is subject to the conditions set forth in 10 CFR Chapter I and is subject to all applicable provisions of the Act, and the rules, regulations, and orders of the Commission, now and hereafter applicable; and is subject to the additional conditions specified and incorporated below:
(1)
Maximum Power Level TFhe-lieesee Exelon Generation is authorized to operate the facility at reactor steady-state core power levels not in excess of 2737 megawatts-thermal in accordance with the conditions specified herein.
(2)
Technical Specifications The Technical Specifications contained in Appendices A and B, as revised through Amendment No. 280 are hereby incorporated into this license. Exelon Generation The heensee shall operate the facility in accordance with the Technical Specifications.
(a)
For Surveillance Requirements (SRs) that are new, in Amendment 201 to Facility Operating License No. DPR-69, the first performance is due at the end of the first surveillance interval that begins at implementation of Amendment 201. For SRs that existed prior to Amendment 201, including SRs with modified acceptance criteria and SRs whose frequency of performance is being extended, the first performance is due at the end of the first surveillance interval that begins on the date the Surveillance was last performed prior to implementation of Amendment 201.
(3)
Less Than Four Pump Operation The licensee shall not operate the reactor at power levels in excess of five (5) percent of rated thermal power with less than four (4) reactor coolant pumps in operation. This condition shall remain in effect until the licensee has submitted safety analyses for less than four pump operation, and approval for such operation has been granted by the Commission by amendment of this license.
(4)
Environmental Monitoring Program If harmful effects or evidence of irreversible damage are detected by the biological monitoring program, hydrological monitoring program, and the radiological monitoring program specified in the Appendix B Technical Specifications, Exelon Generation The keensee will provide to the staff a detailed analysis of the problem and a program of remedial action to be taken to eliminate or significantly reduce the detrimental effects or damage.
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ENCLOSURE (la)
PROPOSED CHANGES TO THE FACILITY OPERATING LICENSES AND RADIOACTIVE MATERIALS LICENSE (5)
Additional Conditions The Additional Conditions contained in Appendix C as revised through Amendment No. 280 are hereby incorporated into this license. Galvet4-Cliffs Nuzlear Pewer Plant, LLC Exelon Generation shall operate the facility in accordance with the Additional Conditions.
(6)
Secondary Water Chemistry Monitoring Program Exelon Generation The CG,*let Cliffs Nucicr Pewer Plant, LLC, shall implement a secondary water chemistry monitoring program to inhibit steam generator tube degradation. This program shall include:
- a.
Identification of a sampling schedule for the critical parameters and control points for these parameters;
- b.
Identification of the procedures used to quantify parameters that are critical to control points;
- c.
Identification of process sampling points;
- d.
Procedure for recording and management of data;
- e.
Procedures defining corrective actions for off control point chemistry conditions; and f,
A procedure identifying the authority responsible for the interpretation of the data and the sequence and timing of administrative events required to initiate corrective action.
(7)
Mitigation Strategy Exelon Generation Tme Cal-ert Cliffi Nuclear Pewer' Plant, LLC, shall develop and maintain strategies for addressing large fires and explosions 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 of 6
ENCLOSURE (la)
PROPOSED CHANGES TO THE FACILITY OPERATING LICENSES AND RADIOACTIVE MATERIALS LICENSE
- 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 D.
Exelon Generation The-licee e 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 the authority of 10 CFR 50.90 and 10 CFR 50.54(p). The combined set of plans, which contain Safeguards Information protected under 10 CFR 73.21, is entitled: "Calvert Cliffs Nuclear Power Plant Security Plan, Training and Qualification Plan, and Safeguards Contingency Plan, Revision 1" submitted dated May 19, 2006.
Exelon Generation The-4ieenes shall fully implement and maintain in effect all provisions of the Commission-approved cyber security plan (CSP), including changes made pursuant to the authority of 10 CFR 50.90 and 10 CFR 50.54(p). The licensee's CSP was approved by License Amendment No. 275.
E.
Exelon Generation The Cal---t Cliffi Nuclee& Power Plant, LLC, shall implement and maintain in effect all provisions of the approved fire protection program as described in the Updated Final Safety Analysis Report for the facility and as approved in the SER dated September 14, 1979, and Supplements dated October 2, 1980; March 18, 1982; and September 27, 1982; and Exemptions dated August 16, 1982; April 21, 1983; March 15, 1984; August 22, 1990; and April 7, 1999 subject to the following provision: Exelon Generation The Calve-A Cliffo NuclearP Powr Plawt, LLC 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.
F.
At the time of the next scheduled update to the FSAR required pursuant to 10 CFR 50.71 (e)(4) following the issuance of this renewed license, Exelon Generation the lieasee-shall update the FSAR to include the FSAR supplement submitted pursuant to 10 CFR 54.21 (d), as amended and supplemented by the program descriptions in Appendix E to the Safety Evaluation Report, NUREG-1705. Until that FSAR update is complete, the heensee Exelon Generation may make changes to the programs described in Appendix E without prior Commission approval, provided that the licensee evaluates each such change pursuant to the criteria set forth in 10 CFR 50.59 and otherwise complies with the requirements in that section.
G.
Any future actions listed in Appendix E to the Safety Evaluation Report, NUREG-1705, shall be included in the FSAR. The ieensee Exelon Generation shall complete these actions by August 13, 2016.
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ENCLOSURE (la)
PROPOSED CHANGES TO THE FACILITY OPERATING LICENSES AND RADIOACTIVE MATERIALS LICENSE H.
This renewed license is effective as of the date of issuance and shall expire at midnight on August 13, 2036.
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ENCLOSURE (la)
PROPOSED CHANGES TO THE FACILITY OPERATING LICENSES AND RADIOACTIVE MATERIALS LICENSE CALVERT CLIFFS NUCLEAR POWER PLANT UNIT 2 TECHNICAL SPECIFICATIONS
Appendix C Additional Conditions Facility Operating License No. DPR-69 Exelon Generation (the licensee or Company) shall comply with the following conditions on the schedule noted below:
I Amendment Number 201 Additional Condition Baltimore Gas and Electric Company (BGE) is authorized to relocate certain Technical Specification requirements to licensee-controlled documents.
Implementation of this amendment shall include the relocation of these requirements to the appropriate documents as described in the licensee's application dated December 4, 1996, as supplemented by letters dated March 27, June 9, June 18, July 21, August 14, August 19, September 10, October 6, October 20, October 23, November 5, 1997, and January 12, January 28, and March 16, 1998, evaluated in the NRC staff's Safety Evaluation enclosed with this amendment.
BGE is authorized to incorporate certain changes in the UFSAR regarding Main Steam Line Break, Steam Generator Tube Rupture, Seized Rotor, and Boron Dilution Analyses.
The decommissioning trust agreement for Calvert Cliffs, Unit 2 at the time the license transfer to the licensee from BGE is effected, is subject to the following:
Implementation Date This amendment is effective immediately and shall be implemented by August 31, 1998.
202 The updated UFSAR shall be implemented within 6 months after restart from the spring 1999 refueling outage.
To be implemented at time the license transfer to the licensee from BGE is effected.
211 (a)
The decommissioning trust agreement must be in a form acceptable to the NRC.
Amendment No. 271 Revised by correction letter dated November 12, 2009
ENCLOSURE (la)
PROPOSED CHANGES TO THE FACILITY OPERATING LICENSES AND RADIOACTIVE MATERIALS LICENSE CALVERT CLIFFS INDEPENDENT SPENT FUEL STORAGE INSTALLATION Materials License No. SNM-2505
ENCLOSURE (la)
PROPOSED CHANGES TO THE FACILITY OPERATING LICENSES AND RADIOACTIVE MATERIALS LICENSE NINE MILE POINT NUCLEAR STATION, UNIT I License No. DPR-63
ENCLOSURE (la)
PROPOSED CHANGES TO THE FACILITY OPERATING LICENSES AND RADIOACTIVE MATERIALS LICENSE NINE MILE POINT NUCLEAR STATION, LLC EXELON GENERATION COMPANY, LLC DOCKET NO. 50-220 NINE MILE POINT NUCLEAR STATION, UNIT 1 RENEWED FACILITY OPERATING LICENSE Renewed License No. DPR-63 The Nuclear Regulatory Commission (NRC or the Commission) having previously made the findings set forth in License No. DPR-63 issued on December 26, 1974, has now found that:
A.
The application for license, as amended, originally filled by the Niagara Mohawk Power Corporation as supplemented by Nine Mile Point Nuclear Station, LLC (NMP LLC,--he 1
)eemee*
complies with the standards and requirements of the Atomic Energy Act of 1954, as amended (the Act), and the Commission's rules and regulations as set forth in 10 CFR Chapter I and all required notifications to other agencies or bodies have been duly made; B.
Construction of the Nine Mile Point Nuclear Station Unit No. I has been substantially completed in conformity with Construction Permit No. CPPR-16 and the application, as amended, the provisions of the Act and the rules and regulations of the Commission; C.
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); 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 licensing basis in order to comply with 10 CFR 54.29(a) are in accordance with the Act and the Commission's regulations; D.
The facility will operate in conformity with the application, as amended, the provisions of the Act, and the rules and regulations of the Commission; E. There is reasonable assurance: (i) that the activities authorized by this operating license can be conducted without endangering the health and the safety of the public, and (ii) that such activities will be conducted in compliance with the rules and regulations of the Commission; F.
Exelon Generation and NMP LLC The-leemee is are technically and financially qualified to engage in the activities authorized by this renewed operating license in accordance with the rules and regulations of the Commission; By Order dated _
, the transfer of the operating authority under this license to Exelon Generation Company, LLC (Exelon Generation) was approved.
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ENCLOSURE (la)
PROPOSED CHANGES TO THE FACILITY OPERATING LICENSES AND RADIOACTIVE MATERIALS LICENSE G.
Exelon Generation and NMP LLC*
Th eensee has have satisfied the applicable provisions of 10 CFR Part 140 "Financial Protection Requirements and Indemnity Agreements" of the Commission's regulations; H.
The issuance of this full-term renewed operating license will not be inimical to the common defense and security or to the health and safety of the public; I.
After weighing the environmental, economic, technical, and other benefits of the facility against environmental and other costs and considering available alternatives, the adverse environmental impacts of license renewal are not so great that preserving the option of license renewal would be unreasonable and the issuance of the full-term Renewed Facility Operating license No. DPR-63 (subject to the conditions for protection of the environment set forth herein) is in accordance with Appendix D, 10 CFR Part 50 of the Commission's regulations and all applicable requirements have been satisfied; and J.
The receipt, possession, and use of source, byproduct and special nuclear material as authorized by this license will be in accordance with the Commission's regulations in 10 CFR Parts 30, 40 and 70 including Section 30.33, 40.32, 70.23 and 70.31.
- 2.
Renewed Facility Operating license No. DPR-63 is hereby issued to Exelon Generation and Nine Mile Point Nuclear Station, LLC to read as follows:
A.
This license applies to the Nine Mile Point Nuclear Station Unit No. 1, a single cycle, force circulation, boiling light water reactor, and associated equipment (the facility),
owned by Nine Mile Point Nuclear Station, LLC. The facility is located on the Nine Mile Point site on the southeast shore of Lake Ontario in Oswego County, New York and is described in the "Final Safety Analysis Report" (with its Amendments Nos. 3 through 13 and its Supplements Nos. 1 through 10) and the "Environmental Report" (with its Supplements Nos. 1 through 3).
B.
Subject to the conditions and requirements incorporated herein, the Commission hereby licenses Nine Mile Point Nucleaf Station, LLC:
(1)
Pursuant to Section 104b of the Act and 10 CFR Part 50, "licensing of Production and Utilization Facilities," (a) NMP LLC to possess and (b) Exelon Generation to possess, use, and operate the facility at the designated location in Oswego County, New York, in accordance with the procedures and limitations set forth in this amended license; (2)
Exelon Generation pursuant to the Act and 10 CFR Part 70, 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 Final Safety Analysis Report, as supplemented and amended; Exelon Generation is authorized to act for Nine Mile Point Nuclear Station, LLC and has exclusive responsibility and control over the physical possession, operation, and maintenance of the facility.
2 of 8
ENCLOSURE (la)
PROPOSED CHANGES TO THE FACILITY OPERATING LICENSES AND RADIOACTIVE MATERIALS LICENSE (3)
Exelon Generation pursuant to the Act and 10 CFR Parts 30, 40, and 70 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)
Exelon Generation pursuant to the Act and 10 CFR Parts 30,40 and 70, to receive, possess and use in amounts as required any byproduct, source or special nuclear material without restriction to chemical or physical form, for sample analysis or instrument and equipment calibration or associated with radioactive apparatus or components.
(5)
Exelon Generation pursuant to the Act and 10 CFR Parts 30 and 70, 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 following Commission regulations in 10 CFR Chapter I:
Part 20, Section 30.34 of Part 30; Section 40.41 of Part 40; Section 50.54 and 50.59 of Part 50; and Section 70.32 of Part 70. This renewed license 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 also subject to the additional conditions specified or incorporated below:
(1)
Maximum Power Level Exelon Generation T is authorized to operate the facility at steady state reactor core power levels not in excess of 1850 megawatts (thermal).
(2)
Technical Specifications The Technical Specifications contained in Appendix A, which is attached hereto, as revised through Amendment No. 213 is hereby incorporated into this license, Exelon Generation Nine Mile Po-nt Nuclear. 5ioatn, LLC shall operate the facility in accordance with the Technical Specifications.
(3)
Deleted D.
This license is subject to the following additional conditions:
(1)
NMP LLC The-lieensee will complete construction of a new radwaste facility in conformance with the design defined and evaluated in the FES, to be operational no later than June 1976.
(2)
Deleted by License Amendment No. 51 (3)
Deleted by License Amendment No. 51 3 of 8
ENCLOSURE (1a)
PROPOSED CHANGES TO THE FACILITY OPERATING LICENSES AND RADIOACTIVE MATERIALS LICENSE (4)
Security, Training and Qualification and Safeguards Contingency Plans Exelon Generation The heeitsee 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 the 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.$4(p). The combined set of plans, which contain Safeguards Information protected under 10 CFR 73.21 is entitled "Nine Mile Point Nuclear Station, LLC Physical Security, Safeguards Contingency, and Security Training and Qualification Plan, Revision 1," and was submitted by letter dated April 26, 2006.
Exelon Generation Theieenesee shall fully implement and maintain in effect all provisions of the Commission-approved cyber security plan (CSP), including changes made pursuant to the authority of 10 CFR 50.90 and 10 CFR 50.54(p).
The licensee's CSP was approved by License Amendment No. 209.
(5)
Paragraph 2.D(5) of the license has been combined with paragraph 2.D(4) as amended above into a single paragraph.
(6)
Recirculation System Safe-end Replacement The recirculation system and safe-end replacement program including the cutting and welding of the replacement components and the dose mitigation program (ALARA) is approved, subject to the following conditions:
- a.
NMP LLC The4ieensee shall complete the recirculation piping stress reanalysis prior to restart of Nine Mile Point Nuclear Power Station, Unit No. 1. The results of this analysis for selected representative portions of the recirculation system shall be submitted to the NRC prior to restart of the facility.
- b.
All fuel and control rods shall be removed from the reactor pressure vessel and stored in the spent fuel pool during the period that work on the safe-end and recirculation system replacement program is in progress.
- c.
Exelon Generation The heensee shall update the collective occupational dose estimate weekly. If the updated estimate exceeds the 1908 person-rem estimate by more than 10%, the licensee shall provide a revised estimate, including the reasons for such changes, to the NRC within 15 days of determination.
- d.
Progress reports shall be provided at 90-day intervals from June 30, 1982 and due 30 days after close of the interval, with a final report within 60 days after completion of the repair. These reports will conclude:
4 of 8
ENCLOSURE (la)
PROPOSED CHANGES TO THE FACILITY OPERATING LICENSES AND RADIOACTIVE MATERIALS LICENSE (1) a summary of this occupational dose received to date by major task, and (2) a comparison of estimated doses with the doses actually received.
(7)
Fire Protection Exelon Generation Nine Aila PAint Nuo-le& StnAtei, LLC shall implement and maintain in effect all provisions of the approved Fire Protection Program as described in the Final Safety Analysis Report (Updated) for the facility and as approved in the Fire Protection Safety Evaluation Report dated July 26, 1979, and in the fire protection Exemption issued March 21, 1983, subject to the following provision:
Exelon Generation Nine Mile Pcint Nu-lelr St*itie, LLC may makes 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.
(8)
Hot Process Pipe Penetrations Hot Process Pipe Penetrations in the Emergency Condenser Steam Supply (2 each), Main Steam (2 each), Feedwater (2 each), Cleanup Suction (1 each), and Cleanup Return (1 each) piping systems have been identified as not fully in conformance with FSAR design criteria. This anomaly in design condition from the original design is approved for the duration of Cycle 8 or until March 31, 1986, whichever occurs first, subject to the following conditions:
(a)
An unidentified leakage limit of a change of 1 gallon per minute in 24 hours2.777778e-4 days <br />0.00667 hours <br />3.968254e-5 weeks <br />9.132e-6 months <br /> to permit operation will be imposed by administrative control (Standing Order) at the facility for the interim period.
(b)
NMP LLC The-4eensee shall restore the facility to a condition consistent with the FSAR or provide a change to the FSAR criteria for staff review and approval prior to restart from the forthcoming Cycle 8 outage.
(9)
On the closing date of the transfer of Nine Mile Point Nuclear Station, Unit No. I (NMP-1) to it, NMP LLC shall: (1) obtain from the transferor all of its accumulated decommissioning trust funds for NMP-1, and (2) receive a parent company guarantee pursuant to 10 CFR 50.75(e)(1)(iii)(B) (to be updated annually) in a form acceptable to the NRC and in an amount which, when combined with the decommissioning trust funds for NMP-1, equals or exceeds the total amount required for NMP-1 pursuant to 10 CFR 50.75(b) and (c).
(10)
The decommissioning trust agreement for NMP-1, at the time any subject direct transfer is effected and thereafter, is subject to the following:
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ENCLOSURE (la)
PROPOSED CHANGES TO THE FACILITY OPERATING LICENSES AND RADIOACTIVE MATERIALS LICENSE
- a.
The decommissioning trust agreement must be in a form acceptable to the NRC.
- b.
With respect to the decommissioning trust funds, investments in the securities or other obligations of Constellation Energy Group, Inc., New Controlled, or their affiliates, successors, or assigns, are and shall be prohibited. Except for investments tied to market indexes or other non-nuclear sector mutual funds, investments in any entity owning one or more nuclear power plants are and shall be prohibited.
- c.
The decommissioning trust agreement must provide that no disbursements or payments from the trusts, other than for ordinary administrative expenses, shall be made by the trustee unless the trustee has first given the NRC 30 days prior written notice of the payment. The decommissioning trust agreement shall further contain a provision that no disbursements or payments from the trusts shall be made if the trustee receives prior written notice of objection from the Director of the Office of Nuclear Reactor Regulation.
- d.
The decommissioning trust agreement must provide that the agreement cannot be amended in any material respect without 30 days prior written notification to the Director of the Office of Nuclear Reactor Regulation.
- e.
The appropriate section of the decommissioning trust agreement shall state that the trustee, investment advisor, or anyone else directing the investments made in the trusts shall adhere to a prudent investor standard, as specified in 18 CFR 35.32(a)(3) of the Federal Energy Regulatory Commission's regulations.
(11)
NMP LLC shall take all necessary steps to ensure that the decommissioning trusts are maintained in accordance with the Application for approval of the transfer of.the NMP-1 license to NMP LLC (Application), the requirements of the Order approving the transfer, and the related safety evaluation.
(12)
At the time of the transfer of NMP-l to NMP LLC, NMP LLC shall enter or shall have entered into an intercompany credit agreement with Constellation Energy Group (CEG), Inc. or New Controlled, whichever entity is the ultimate parent of NMP LLC at that time, in the form and on the terms represented in the Application for license transfer. Should New Controlled become the ultimate parent of NMP LLC following the direct transfer of the license to NMP LLC, NMP LLC shall enter or shall have entered into a substantially identical intercompany credit agreement with New Controlled at the time New Controlled becomes the ultimate parent; in such case, any existing intercompany credit agreement with CEG, Inc. may be canceled once the intercompany credit agreement with New Controlled is established. Except as otherwise provided above, NMP LLC shall take no action to void, cancel, or modify any intercompany credit agreement referenced above, without the prior written consent of the Director of the Office of Nuclear Reactor Regulation.
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ENCLOSURE (la)
PROPOSED CHANGES TO THE FACILITY OPERATING LICENSES AND RADIOACTIVE MATERIALS LICENSE (13)
Mitigation Strategy License Condition Exelon Generation The-lieensee 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 (14)
Exelon Generation e-lisenes shall implement and maintain all Actions required by Attachment 2 to NRC Order EA-06-137, issued June 20, 2006, except the last action that requires incorporation of the strategies into the site security plan, contingency plan, emergency plan and/or guard training and qualification plan, as appropriate.
(15)
Upon implementation of Amendment No. 195 adopting TSTF-448, Revision 3, the determination of control room envelope (CRE) unfiltered air inleakage as required by TS 4.4.5.g, in accordance with TS 6.5.8.c.(i), the assessment of CRE habitability as required by Specification 6.5.8.c.(ii), and the measurement of CRE pressure as required by Specification 6.5.8.d, shall be considered met. Following implementation:
(a)
The first performance of TS 4.4.5.g, in accordance with Specification 6.5.8.c.(i), shall be within the specified Frequency of 6 years plus the 18-month allowance of TS 4.0.2, as measured from February 19, 2004, the date of the most recent tracer gas test, as stated in the January 31, 2005 letter response to Generic Letter 2003-01, or within the next 18 months if 7 of 8
ENCLOSURE (la)
PROPOSED CHANGES TO THE FACILITY OPERATING LICENSES AND RADIOACTIVE MATERIALS LICENSE the time period since the most recent tracer gas test is greater than 6 years.
(b)
The first performance of the periodic assessment of CRE habitability, Specification 6.5.8.c.(ii), shall be within 3 years, plus the 9-month allowance of TS 4.0.2, as measured from February 19, 2004, the date of the most recent tracer gas test, as stated in the January 31, 2005 letter response to Generic Letter 2003-01, or within the next 9 months if the time period since the most recent tracer gas test is greater than 3 years.
(c)
The first performance of the periodic assessment of CRE pressure, Specification 6.5.8.d, shall be within 24 months, plus the 182 days allowed by TS 4.0.2, as measured from March 1, 2007, the date of the most recent successful pressure measurement test, or within the next 182 days if not performed previously.
E.
This license is effective as of the date of issuance and shall expire on August 22, 2029.
F.
The UFSAR supplement, as revised, submitted pursuant to 10 CFR 54.21(d), shall be included in the next scheduled update to the UFSAR required by 10 CFR 50.71 (e)(4) following the issuance of this renewed operating license. Until that update is complete, the licensee NW1 LLG may make changes to the programs and activities described in the supplement without prior Commission approval,,provided that the licensee NW4 LLC evaluates such changes pursuant to the criteria set forth in 10 CFR 50.59 and otherwise complies with the requirements in that section.
G.
The UFSAR supplement, as revised, describes certain future activities to be completed prior to the period of extended operation. The licensee NMp LLC shall complete these activities in accordance with the schedule in Appendix A of NUREG-1900, "Safety Evaluation Report Related to the License Renewal of Nine Mile Point Nuclear Station, Units 1 and 2", dated September 2006, and shall notify the NRC in writing when implementation of these activities is complete and can be verified by NRC inspection.
H.
All capsules in the reactor vessel that are removed and tested must meet the test procedures and reporting requirements of the most recent NRC-approved version of the Boiling Water Reactor Vessels and Internals Project (BWRVIP) Integrated Surveillance Program (ISP) appropriate for the configuration of the specimens in the capsule. All capsules placed in storage must be maintained for future insertion. Any changes to storage requirements must be approved by the NRC, as required by 10 CFR Part 50, Appendix H.
8 of 8
ENCLOSURE (la)
PROPOSED CHANGES TO THE FACILITY OPERATING LICENSES AND RADIOACTIVE MATERIALS LICENSE NINE MILE POINT NUCLEAR STATION, UNIT 2 License No. NPF-69
ENCLOSURE (la)
PROPOSED CHANGES TO THE FACILITY OPERATING LICENSES AND RADIOACTIVE MATERIALS LICENSE NINE MILE POINT NUCLEAR STATION, LLC EXELON GENERATION COMPANY, LLC DOCKET NO. 50410 NINE MILE POINT NUCLEAR STATION, UNIT 2 RENEWED FACILITY OPERATING LICENSE Renewed License No. NPF-69 The Nuclear Regulatory Commission (NRC or the Commission) having previously made the findings set forth in License No. NPF-69 issued on July 2, 1987, has now found that:
A.
The application for license filed by Nine Mile Point Nuclear Station, LLC* (NMP LLC, the lkeeme,)
complies with the standards and requirements of the Atomic Energy Act of 1954, as amended (the Act), and the Commission's rules and regulations as set forth in 10 CFR Chapter I and all required notifications to other agencies or bodies have been duly made; B.
Construction of the Nine Mile Point Nuclear Station, Unit 2 (the facility) has been substantially completed in conformity with Construction Permit No. CPPR-112 and the application, as amended, the provisions of the Act, and the regulations of the Commission; C.
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); 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 licensing basis in order to comply with 10 CFR 54.29(a) are in accordance with the Act and the Commission's regulations; D.
The facility will operate in conformity with the application, as amended, the provisions of the Act, and the rules and regulations of the Commission (except as exempted from compliance in Section 2.D. below);
E.
There is reasonable assurance: (i) that the activities authorized by this 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.D. below);
F.
Exelon Generation and Nine Mile Point Nuclear Station, LLC is are technically qualified to engage in the activities authorized by this license in accordance with the Commission's regulations set forth in 10 CFR Chapter 1; 1 of 12
ENCLOSURE (la)
PROPOSED CHANGES TO THE FACILITY OPERATING LICENSES AND RADIOACTIVE MATERIALS LICENSE By Order dated
, the transfer of the operating authority under this license to Exelon Generation Company, LLC (Exelon Generation) was approved.
G.
Nine Mile Point Nuclear Station, LLC and Long Island Lighting Company, as owners of the facility, and Exelon Generation, as operator of the facility, have satisfied the applicable provisions of 10 CFR Part 140, "Financial Protection Requirements and Indemnity Agreements," of the Commission's regulations; H.
The issuance of this full-term renewed operating license will not be inimical to the common defense and security or to the health and safety of the public;
- 1.
After weighing the environmental, economic, technical, and other benefits of the facility against environmental and other costs and considering available alternatives, the adverse environmental impacts of license renewal are not so great that preserving the option of license renewal would be unreasonable and the issuance of the Renewed Facility Operating License No. NPF-69, 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; and J.
The receipt, possession, and use of source, byproduct and special nuclear material as authorized by this license will be in accordance with the Commission's regulations in 10 CFR Parts 30, 40 and 70.
- 2.
Renewed Facility Operating License No. NPF-69 is hereby issued to Exelon Generation, the Nine Mile Point Nuclear Station, LLC, and Long Island Lighting Company (the licensees*) to read as follows:
A.
This renewed operating license applies to the Nine Mile Point Nuclear Station, Unit 2, a boiling water nuclear reactor, and associated equipment (the facility) owned by Nine Mile Point Nuclear Station, LLC and Long Island Lighting Company. The facility is located on the licensees' site on the southeast shore of Lake Ontario in the town of Scriba, Oswego County, New York and is described in the Nine Mile Point Nuclear Station - Unit 2 "Final Safety Analysis Report," as supplemented and amended, and in the "Environmental Report," as supplemented and amended.
Exelon Generation NMae Mile Point Nucleer SWttion, LLC is authorized to act as agent for Nine Mile Point Nuclear Station, LLC and Long Island Lighting Company and has exclusive responsibility and control over the physical possession eenst *'etiefr, operation, and maintenance of the facility.
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PROPOSED CHANGES TO THE FACILITY OPERATING LICENSES AND RADIOACTIVE MATERIALS LICENSE B.
Subject to the conditions and requirements incorporated herein, the Commission hereby licenses:
(1)
Exelon Generation Nine Mile Point Nule.
Sttion, LLC, pursuant to Section 103 of the Act and 10 CFR Part 50, to possess, use and operate the facility at the above designated location in Oswego County, New York, in accordance with the procedures and limitations set forth in this license; (2)
NMP LLC and Long Island Lighting Company, pursuant to Section 103 of the Act and 10 CFR Part 50, to possess the facility at the designated location in Oswego County, New York, in accordance with the procedures and limitations set forth in this license; (3)
Exelon Generation Nine M.ile Peint Nul-tMclear Station, LLC, pursuant to the Act and 10 CFR Part 70, 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 Final Safety Analysis Report, as supplemented and amended; (4)
Exelon Generation Nine MWle Pe'in Nuclear Stafon, LLC, pursuant to the Act and 10 CFR Parts 30, 40 and 70, 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; (5)
Exelon Generation Nine Mile Peint N*uclea-St9t"n, LLC, pursuant to the Act and 10 CFR Parts 30, 40 and 70, to receive, possess, and use, in amounts as 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 (6)
Exelon Generation Nine Mile Point Nuclear-Sttion, LLC, pursuant to the Act and 10 CFR Parts 30, 40 and 70, 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 Commissions 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:
(I)
Maximum Power Level Exelon Generation Nine Mile Point NIul.ar-Station, LLC is authorized to operate the facility at reactor core power levels not in excess of 3988 megawatts thermal (100 percent rated power) in accordance with the conditions specified herein.
(2)
Technical Specifications and Environmental Protection Plan 3 of 12
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PROPOSED CHANGES TO THE FACILITY OPERATING LICENSES AND RADIOACTIVE MATERIALS LICENSE The Technical Specifications contained in Appendix A and the Environmental Protection Plan contained in Appendix B, both of which are attached hereto, as revised through Amendment No. 142 are hereby incorporated into this license.
Exelon Generation MInR -Mil P-int Nucle.r SteAien, LLC shall operate the facility in accordance with the Technical Specifications and the Environmental Protection Plan.
(3)
Fuel Storage and Handling (Section 9.1. SSER 4)*
- a.
Fuel assemblies, when stored in their shipping containers, shall be stacked no more than three containers high.
- b.
When not in the reactor vessel, no more than three fuel assemblies shall be allowed outside of their shipping containers or storage racks in the New Fuel Vault or Spent Fuel Storage Facility.
- c.
The above three fuel assemblies shall maintain a minimum edge-to-edge spacing of twelve (12) inches from the shipping container array and approved storage rack locations.
- d.
The New Fuel Storage Vault shall have no more than ten fresh fuel assemblies uncovered at any one time.
(4)
Turbine System Maintenance Program (Section 3.5.1.3.10. SER) The operating licensee shall submit for NRC approval by October 31, 1989, a turbine system maintenance program based on the manufacturer's calculations of missile generation probabilities. (Submitted by NMPC letter dated October 30, 1989 from C.D. Terry and approved by NRC letter dated March 15, 1990 from Robert Martin to Mr. Lawrence Burkhardt, III).
(5)
Inservice Inspection (Sections 5.2.4.3 and 6.6.3. SSER 5)
The operating licensee shall submit an inservice inspection program in accordance with 10 CFR 50.55a(g)(4) for staff review by July 31, 1987.
(6)
Initial Startup Test Program (Section 14. SER. SSERs 4 and 5)
Any changes to the Initial Test Program described in Section 14 of the Final Safety Analysis Report made in accordance with the provisions of 10 CFR 50.59 shall be reported in accordance with 50.59(b) within one month of such change.
The parenthetical notation following the title of many license conditions denotes the section of the Safety Evaluation Report (SER) and/or its supplements wherein the license condition is discussed.
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PROPOSED CHANGES TO THE FACILITY OPERATING LICENSES AND RADIOACTIVE MATERIALS LICENSE (7)
Operation with Reduced Feedwater Temperature (Section 15.1. SSER 4)
The licensee Nine Mile PAint Nuc7ar. StAgen, LLC shall not operate the facility with reduced feedwater temperature for the purpose of extending the normal fuel cycle. The facility shall not be operated with a feedwater heating capacity less than that required to produce a feedwater temperature of 420.5 OF at rated steady-state conditions unless analyses supporting such operations are submitted by the licensee NiT-ne Mfilfe Point NucleAr SItAtin, LLC and approved by the staff.
(8)
Safety Parameter Display System (SPDS) (Section 18.2. SSERs 3 and 5)
Prior to startup following the first refueling outage, the operating licensee shall have operational an SPDS that includes the revisions described in their letter of November 19, 1985. Before declaring the SPDS operational, the operating licensee shall complete testing adequate to ensure that no safety concerns exist regarding the operation of the Nine Mile Point Nuclear Station, Unit No.2 SPDS.
(9)
Detailed Control Room Design Review (Section 18.1. SSERs 5 and 6)
(a)
Deleted per Amendment No. 24 (12-18-90)
(b)
Prior to startup following the first refueling outage, the operating licensee shall provide the results of the reevaluation of normally lit and nuisance alarms for NRC review in accordance with its August 21, 1986 letter.
(c)
Prior to startup following the first refueling outage, the operating licensee shall complete permanent zone banding of meters in accordance with its August 4, 1986 letter.
(20)
Potential Adverse Flow Effects These license conditions provide for monitoring, evaluating, and taking prompt action in response to potential adverse flow effects as a result of power uprate operation on plant structures, systems, and components (including verifying the continued structural integrity of the steam dryer) for power ascension from CL TP (3467 MWt) to 120 percent OL TP (or 115 percent of CL TP) (3988 MWt) condition.
(a) The following requirements are placed on operation of the facility above the thermal power level of 3467 MWt for the power ascension from CL TP (3467 MWt):
- 1. The licensee NMP.NS shall monitor the main steam line (MSL) strain gages during power ascension above 3467 MWt for increasing pressure fluctuations in the steam lines. While first increasing power above 3467 MWt, the licensee NMQNS shall collect data from the MSL strain gages at nominal 1 percent thermal power increments and evaluate steam dryer performance based on this data.
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PROPOSED CHANGES TO THE FACILITY OPERATING LICENSES AND RADIOACTIVE MATERIALS LICENSE
- 2. The licensee 4AP-NS shall hold the facility at 105 percent and 110 percent of 3467 MWt to collect data from the MSL strain gages required by Condition l.a., conduct plant inspections and walkdowns, and evaluate steam dryer performance based on these data; shall provide the evaluation to the NRC staff by facsimile or electronic transmission to the NRC project manager upon completion of the evaluation; and shall not increase power above each hold point until 96 hours0.00111 days <br />0.0267 hours <br />1.587302e-4 weeks <br />3.6528e-5 months <br /> after the NRC project manager confirms receipt of the transmission.
- 3.
During power ascension at each 2.5 percent power level above CL TP, the licensee shall perform stress analysis for the top 100 stress locations of the steam dryer using the applicable ACM 4.1 load definition and determine the minimum alternating stress ratio. The licensee shall confirm that this ratio is equal to or greater than the ratio based on the velocity-square relationship; otherwise, the licensee shall return the facility to a lower power level where the minimum alternating stress ratio satisfies the velocity-square relationship, and shall not further increase the power without approval from the NRC. A summary of the results shall be provided for NRC review at each 5 percent data review plateau.
After completion of the full EPU test plateau (approximately 120 percent OLTP or 115 percent CLTP), the licensee shall provide the NRC a full startup test report and final stress analysis report within 90 days.
- 4. If any frequency peak from the MSL strain gage data exceeds the Level 1 limit curves, the licensee NMPNS shall return the facility to a power level at which the limit curve is not exceeded. The licensee NMPNS shall resolve the discrepancy, evaluate and document the continued structural integrity of the steam dryer, and provide that documentation by facsimile or electronic transmission to the NRC project manager prior to further increases in reactor power, except when stress analysis is re-performed and new limit curves are developed. In that case, the licensee
- NPNS shall not further increase power above each hold point until 96 hours0.00111 days <br />0.0267 hours <br />1.587302e-4 weeks <br />3.6528e-5 months <br /> after the NRC project manager confirms receipt of the transmission.
- 5.
In addition to evaluating the MSL strain gage data, the licensee NMPNS shall monitor reactor pressure vessel water level instrumentation, and MSL piping accelerometers on an hourly basis during power ascension above 3467 MWt. If resonance frequencies are identified as increasing above nominal levels in proportion to strain gage instrumentation data, the licensee NMPNS shall stop power ascension, evaluate and document the continued structural integrity of the steam dryer, and provide that documentation to NRC staff by facsimile or electronic transmission to the NRC project manager prior to further increases in reactor power.
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PROPOSED CHANGES TO THE FACILITY OPERATING LICENSES AND RADIOACTIVE MATERIALS LICENSE (b) The licensee N-MWWR shall implement the following actions for the power ascension from CL TP (3467 MWt) to 120 percent OL TP (3988 MWt) condition.
- 1. In the event that acoustic signals (in MSL strain gage signals) are identified that challenge the limit curves during power ascension above 3467 MWt, the licensee N10NS shall evaluate dryer loads, and stresses, including the effect of+/-l 0 percent frequency shift, and re-establish the limit curves, and shall perform a frequency-specific assessment of ACM uncertainty at the acoustic signal frequency including application of 65 percent bias error and 10 percent uncertainty to all the SRV acoustic resonances. In the event that stress analyses are re-performed based on new strain gage data to address paragraph 1 above, the revised load definition, stress analysis, and limit curves shall include:
(a) Application of 65 percent bias error and 10 percent uncertainty to all the SRV acoustic resonances.
(b) Use of bump-up factors associated with all the SRV acoustic resonances and determined from the scale model test results.
(c) Evaluation of the effect ofl+/- 10 percent frequency shifts in increments of 2.5 percent.
- 2. The licensee N/M/PN shall incorporate in NMP2 steam dryer the design modifications identified in Section 2.2.6.1.2 of this SE before increasing the power above CLTP.
- 3. After reaching EPU conditions, the licensee NMPiS shall obtain measurements from the MSL strain gages and establish the steam dryer flow-induced vibration load fatigue margin for the facility, update the dryer stress report, and re-establish the limit curves with the updated ACM load definition, which will be provided to the NRC staff.
- 4. The licensee NM4NN shall revise plant procedures to reflect long-term monitoring of plant parameters potentially indicative of steam dryer failure; to reflect consistency of the facility's steam dryer inspection program with BWRVIP-139; and to identify the NRC project manager for the facility as the point of contact for providing power ascension testing information during power ascension.
- 5. The licensee NIMP-N shall submit the final EPU steam dryer load definition for the facility to the NRC upon completion of the power ascension test program.
- 6.
The licensee NMPN8 shall submit the flow-induced vibration related portions of the EPU startup test procedure to the NRC, including methodology for updating the limit curve, prior to initial power ascension above 3467 MWt.
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PROPOSED CHANGES TO THE FACILITY OPERATING LICENSES AND RADIOACTIVE MATERIALS LICENSE (c) The licensee M1NW shall prepare the EPU startup test procedure to include:
- 1. The stress limit curves to be applied for evaluating steam dryer performance;
- 2.
Specific hold points and their durations during EPU power ascension;
- 3. Activities to be accomplished during the hold points;
- 4. Plant parameters to be monitored;
- 5. Inspections and walkdowns to be conducted for steam, feedwater, and condensate systems and components during the hold points;
- 6. Methods to be used to trend plant parameters;
- 7. Acceptance criteria for monitoring and trending plant parameters, and conducting the walkdowns and inspections;
- 8. Actions to be taken if acceptance criteria are not satisfied; and
- 9. Verification of the completion of commitments and planned actions specified in its application and all supplements to the application in support of the EPU license amendment request pertaining to the steam dryer prior to power increase above 3467 MWt.
The licensee NM4NS shall provide the related EPU startup test procedure sections to the NRC by facsimile or electronic transmission to the NRC project manager prior to increasing power above 3467 MWt.
(d) The following key attributes of the program for verifying the continued structural integrity of the steam dryer shall not be made less restrictive without prior NRC approval:
- 1. During initial power ascension testing above 3467 MWt, each test plateau increment shall be approximately 5 percent of 3467 MWt.
- 2. Level 1 performance criteria; and
- 3. The methodology for establishing the limit curves used for the Level 1 and Level 2 performance (e) The results of the power ascension testing to verify the continued structural integrity of the steam dryer and the final steam dryer load definition shall be submitted to the NRC staff in a report within 60 days following the completion of all 120 percent OLTP (EPU) power ascension testing.
(f) During the first two scheduled refueling outages after reaching 120 percent OL TP conditions, a visual inspection shall be conducted of all accessible, 8 of 12
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PROPOSED CHANGES TO THE FACILITY OPERATING LICENSES AND RADIOACTIVE MATERIALS LICENSE susceptible locations of the steam dryer in accordance with BWRVIP-139 inspection guidelines. In addition, a visual inspection of all accessible welds that were analyzed using embedded models shall be conducted. In addition, a visual inspection of the existing indications in the upper support ring, the drain channel to skirt weld, the tie bar-to-hood weld heat affected zone, and vertical support plates shall be conducted.
(g) The results of the visual inspections of the steam dryer shall be reported to the NRC staff within 90 days following startup from the respective refueling outage.
(h) At the end of the second refueling outage, following the implementation of the EPU, the licensee shall submit a long-term steam dryer inspection plan based on industry operating experience along with the baseline inspection results for NRC review and approval.
The license conditions in 2.C.(20) above shall expire (1) upon satisfaction of the requirements in paragraphs (f) and (g), provided that a visual inspection of the steam dryer does not reveal any new unacceptable flaw(s) or unacceptable flaw growth that is due to fatigue, and (2) upon satisfaction of the requirements specified in paragraph (h).
(21)
Fatigue Monitoring Program If stress based fatigue monitoring is used, it shall include all six stress terms in accordance with NB-3200. The condition for this requirement will be carried over and be applicable for operation under EPU conditions and in the plant life extension to 60 years.
D.
The facility requires exemptions from certain requirements of 10 CFR Part 50 and 10 CFR Part 70.
i)
An exemption from the critically alarm requirements of 10 CFR Part 70.24 was granted in the Special Nuclear Materials License No. SNM-1895 dated November 27, 1985. This exemption is described in Section 9.1 of Supplement 4 to the SER. This previously granted exemption is continued in this operating license.
ii)
Exemptions to certain requirements of Appendix J to 10 CFR Part 50 are described in Supplements 3, 4, and 5 to the SER. These include (a) (this item left intentionally blank); (b) an exemption from the requirement of Option B of Appendix J, exempting main steam isolation valve measured leakage from the combined leakage rate limit of 0.6 La. (Section 6.2.6 of SSER 5)*; (c) an exemption from Option B of Appendix J, exempting the hydraulic control system for the reactor recirculation flow control valves from Type A and Type C leak testing (Section 6.2.6 of SSER 3); (d) an exemption from Option B of Appendix J, exempting Type C testing on traversing incore probe system shear valves.
(Section 6.2.6 SSER 4) 9 of 12
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PROPOSED CHANGES TO THE FACILITY OPERATING LICENSES AND RADIOACTIVE MATERIALS LICENSE iii)
An exemption to Appendix A to 10 CFR Part 50 exempting the Control Rod Drive (CRD) hydraulic lines to the reactor recirculation pump seal purge equipment from General Design Criterion (GDC) 55. The CRD hydraulic lines to the reactor recirculation pump seal purge equipment use two simple check valves for the isolation outside containment (one side). (Section 6.2A, SSER 3) iv)
A schedular exemption to GDC 2, Appendix A to 10 CFR Part 50, until the first refueling outage, to demonstrate the adequacy of the downcomer design under the plant faulted condition. This exemption permits additional analysis and/or modifications, as necessary, to be completed by the end of the first refueling outage. (Section 6.2.1.7 A, SSER 3) v)
A schedular exemption to GDC 50, Appendix A to 10 CFR Part 50 to allow the operating licensee until start-up following the "mini-outage," which is to occur within 12 months of commencing power operation (entering Operational Condition 1), to install redundant fuses in circuits that use transformers for redundant penetration protection in accordance with their letter of August 29, 1986 (NMP2L 0860). (Section 8A.2, SSER 5) vi)
A schedular exemption to 10 CFR 50.55a(h) for the Neutron Monitoring System until completion of the first refueling outage to allow the operating licensee to provide qualified isolation devices for Class I E/non-1 E interfaces described in their letters of June 23, 1987 (NMP2L 1057) and June 25, 1987 (NMP2L 1058).
(Section 7.2.2.10, SSER 6).
For the schedular exemptions in iv), v), and vi), above, the operating licensee, in accordance with
- its letter of October 31, 1986, shall certify that all systems, components, and modifications have been completed to meet the requirements of the regulations for which the exemptions have been granted and shall provide a summary description of actions taken to ensure-that the regulations have been met. This certification and summary shall be provided 10 days prior to the expiration of each exemption period as described above.
The exemptions set forth in this Section 2.0 are authorized by law, will not present an undue risk to public health and safety, and are consistent with the common defense and security. These exemptions are hereby granted. The special circumstances regarding each exemption are identified in the referenced section of the Safety Evaluation Report and the supplements thereto. The exemptions in ii) through vi) are granted pursuant to 10 CFR 50.12.
With these exemptions, 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.
The parenthetical notation following the discussion of each exemption denotes the section of the Safety Evaluation Report (SER) and/or its supplements wherein the safety evaluation of the exemption is discussed.
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ENCLOSURE (la)
PROPOSED CHANGES TO THE FACILITY OPERATING LICENSES AND RADIOACTIVE MATERIALS LICENSE E.
Exelon Generation NMOW M*Ailz Point Nuclear Station, LLC 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 contain Safeguards Information protected under 10 CFR 73.21 is entitled "Nine Mile Point Nuclear Station, LLC Physical Security, Safeguards Contingency, and Security Training and Qualification Plan, Revision 1," and was submitted by letter dated April 26, 2006. Changes made in accordance with 10 CFR 73.55 shall be implemented in accordance with the schedule set forth therein.
Exelon Generation Nine Mile Poin Nwucl.ar Station, LLC shall fully implement and maintain in effect all provisions of the Commission-approved cyber security plan (CSP),
including changes made pursuant to the authority of 10 CFR 50.90 and 10 CFR 50.54(p).
The Nine Mile Point Nuclear Station's CSP was approved by License Amendment No.
137.
F.
Exelon Generation Ni.no Mik, Point Nwulc*r Stati*n, LLC 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 through Amendment No. 27 and as described in submittals dated March 25, May 7 and 9, June 10 and 25, July 11 and 16, August 19 and 22, September 5,12, and 23, October 10, 21, and 22, and December 9, 1986, and April 10 and May 20, 1987, and as approved in the SER dated February 1985 (and Supplements 1 through 6) subject to the following provision:
Exelon Generation Nine Mile Point Nuclefr Staticn, LLC 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.
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.
H.
This license is effective as of the date of issuance and shall expire at midnight on October 31, 2046.
The UFSAR supplement, as revised, submitted pursuant to 10 CFR 54.21(d), shall be included in the next scheduled update to the USAR required by 10 CFR 50.7 1(e)(4) following the issuance of this renewed operating license. Until that update is complete, the licensee NM4P LLC may make changes to the programs and activities described in the supplement without prior Commission approval, provided that the licensee NMp-LLG evaluates such changes pursuant to the criteria set forth in 10 CFR 50.59 and otherwise complies with the requirements in that section.
J.
The UFSAR supplement, as revised, describes certain future activities to be completed prior to the period of extended operation. The licensee NMP LbG shall complete these activities in accordance with Appendix A of NUREG-1900, "Safety Evaluation Report 11 of 12
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PROPOSED CHANGES TO THE FACILITY OPERATING LICENSES AND RADIOACTIVE MATERIALS LICENSE Related to the License Renewal of Nine Mile Point Nuclear Station, Units 1 and 2", dated September 2006, and shall notify the NRC in writing when implementation of these activities is complete and can be verified by NRC inspection.
K.
For the renewed license term, all capsules in the reactor vessel that are removed and tested must meet the test procedures and reporting requirements of the most recent NRC-approved version of the Boiling Water Reactor Vessels and Internals Project (BWRVIP) Integrated Surveillance Program (ISP) appropriate for the configuration of the specimens in the capsule. All capsules placed in storage must be maintained for future insertion. Any changes to storage requirements must be approved by the NRC, as required by 10 CFR Part 50, Appendix H.
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ENCLOSURE (la)
PROPOSED CHANGES TO THE FACILITY OPERATING LICENSES AND RADIOACTIVE MATERIALS LICENSE R.E. GINNA NUCLEAR POWER PLANT License No. DPR-18
ENCLOSURE (la)
PROPOSED CHANGES TO THE FACILITY OPERATING LICENSES AND RADIOACTIVE MATERIALS LICENSE R. E. GINNA NUCLEAR POWER PLANT. LLC EXELON GENERATION COMPANY, LLC DOCKET NO. 50-244 R. E. GINNA NUCLEAR POWER PLANT RENEWED FACILITY OPERATING LICENSE NO. DPR-18 The U.S. Nuclear Regulatory Commission (the Commission) having previously made the findings set forth in License No. DPR-18 issued December 10, 1984, has now found that:
A.
The application to renew License No. DPR-18 filed by Rochester Gas and Electric Corporation (RG&E)* complies with the standards and requirements of the Atomic Energy Act of 1954, as amended (the Act), and the rules and regulations of the Commission set forth in Title 10 of the Code of Federal Regulations (10 CFR) Chapter I and all required notifications to other agencies or bodies have been duly made; B.
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), 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 license will continue to be conducted in accordance with the current licensing basis, as defined in 10 CFR 54.3, for R. E. Ginna Nuclear Power Plant (the facility), and that any changes made to the plant's current licensing basis in order to comply with 10 CFR 54.29(a) are in accord with the Act and the Commission's regulations; C.
The facility will operate in conformity with the application, the provisions of the Act, and the rules and regulations of the Commission; D.
There is reasonable assurance (i) that the facility can be operated at power levels up to 1520 megawatts (thermal) without endangering the health and safety of the public; and (ii) that such activities will be conducted in compliance with the regulations of the Commission (except as exempted from compliance in Section 2.D below);
E.
R. E. Ginna Nuclear Power Plant, LLC (Ginna LLC) and Exelon Generation is technically and financially qualified to engage in the activities authorized by this renewed operating license in accordance with the rules and regulations of the Commission; By Order dated
, the transfer of the operating authority under this license to Exelon Generation Company, LLC (Exelon Generation) was approved.
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PROPOSED CHANGES TO THE FACILITY OPERATING LICENSES AND RADIOACTIVE MATERIALS LICENSE F.
Exelon Generation and Ginna LLC* have has furnished proof of financial protection that satisfies the requirements of 10 CFR Part 140; G.
The issuance of this renewed license will not be inimical to the common defense and security or to the health and safety of the public; and H.
After weighing the environmental, economic, technical, and other benefits of the facility against environmental costs and considering available alternatives, the Commission concludes that the issuance of Renewed Operating License No. DPR-18 is in accordance with 10 CFR Part 51 of the Commission's regulations and all applicable requirements have been satisfied.
- 2.
On the basis of the foregoing findings regarding this facility, Facility Operating License No.
DPR-18, is superseded by Renewed Facility Operating License No. DPR-18, hereby issued to RG&E and subsequently transferred to Ginna LLC and Exelon Generation to read as follows:
A.
This renewed license applies to the R. E. Ginna Nuclear Power Plant, a closed cycle, pressurized, light-water-moderated and cooled reactor, and electric generating equipment which is owned by Ginna LLC (licensee). The facility is located on the licensee's site on the south shore of Lake Ontario, Wayne County, New York, about 16 miles east of the City of Rochester and is described in the licensee's Updated Final Safety Analysis Report (UFSAR), as supplemented and amended.
B.
Subject to the conditions and requirements incorporated herein, the Commission hereby licenses G-irma LLC:
(1)
Pursuant to Section 104b of the Act and 10 CFR Part 50, "Domestic Licensing of Production and Utilization Facilities," (a) Ginna LLC to possess and (b) Exelon Generation to possess, use and operate the facility at the designated location in Wayne County, New York, in accordance with the procedures and limitations set forth in this renewed license; (2)
Exelon Generation pursuant to the Act and 10 CFR Part 70, to receive, possess, and use at any time special nuclear material or reactor fuel, in accordance with the limitations for storage and amounts required for reactor operation as described in the Final Safety Analysis Report, as amended, and Commission Safety Evaluations dated November 15,1976, October 5, 1984, November 14, 1984, and August 30, 1995.
(a)
Exelon Generation pursuant to the Act and 10 CFR Part 70, to receive and store four (4) mixed oxide fuel assemblies in accordance with the RG&E's application dated December 14, 1979 (transmitted by letter dated December 20,1979);
Exelon Generation is authorized to act for Ginna LLC and has exclusive responsibility and control over the physical possession, operation, and maintenance of the facility.
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PROPOSED CHANGES TO THE FACILITY OPERATING LICENSES AND RADIOACTIVE MATERIALS LICENSE (b)
Exelon Generation pursuant to the Act and 10 CFR Part 70, to possess and use four (4) mixed oxide fuel assemblies in accordance with the RG&E's application dated December 14, 1979 (transmitted by letter dated December 20. 1979). as supplemented February 20,1980, and March 5, 1980; (3)
Exelon Generation pursuant to the Act and 10 CFR Parts 30, 40, and 70 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)
Exelon Generation pursuant to the Act and 10 CFR Parts 30, 40, and 70. to receive, possess, and use in amounts as 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)
Exelon Generation pursuant to the Act and 10 CFR Parts 30 and 70, to possess, but not separate, such byproduct and special nuclear materials as may be produced by the operation of the facility.
C.
This renewed license shall be deemed to contain and is subject to the conditions specified in the following Commission regulations in 10 CFR Part 20. Section 30.34 of Part 30, Section 40.41 of Part 40, Sections 50.54 and 50.59 of Part 50, and Section 70.32 of Part 70; and is subject to all applicable provisions of the Act and rules, regulations and orders of the Commission now or hereafter in effect; and is subject to the additional conditions specified below:
(1)
Maximum Power Level Exelon Generation "ii-ii Ia LG is authorized to operate the facility at steady-state power levels up to a maximum of 1775 megawatts (thermal).
(2)
Technical Specifications The Technical Specifications contained in Appendix A, as revised through Amendment No. 114, are hereby incorporated in the renewed license. The licensee shall operate the facility in accordance with the Technical Specifications.
(3)
Fire Protection (a)
Exelon Generation he ieensee shall implement and maintain in effect all fire protection features described in the licensee's submittals referenced in and as approved or modified by the NRC's Fire Protection Safety Evaluation (SE) dated February 14, 1979, and 3 of 6
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PROPOSED CHANGES TO THE FACILITY OPERATING LICENSES AND RADIOACTIVE MATERIALS LICENSE SE supplements dated December 17, 1980, February 6, 1981, June 22, 1981, February 27, 1985, and March 21, 1985 or configurations subsequently approved by the NRC, subject to provision (b) below.
(b)
Exelon Generation The heeftsee 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.
(c)
Deleted (4)
Deleted (5)
Deleted (6)
Deleted (7)
License Transfer (a)
On the closing date of the transfer of the facility, Ginna LLC shall obtain from RG&E the greater of (1) $200,791,928 or (2) the amount necessary to meet the minimum formula amount under 10 CFR 50.75 calculated as of the date of closing for decommissioning funding assurance for the facility, and ensure the deposit of such funds into a decommissioning trust for the facility established by Ginna LLC.
(b)
The decommissioning trust agreement must be in a form acceptable to the NRC.
(c)
Ginna LLC The-liesmsee shall take all necessary steps to ensure that the decommissioning trust is maintained in accordance with the application and the requirements of the Order approving license transfer, and shall be consistent with the Safety Evaluation supporting that Order.
(8)
Mitigation Strategv Exelon Generation Ginma LLC 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:
4 of 6
ENCLOSURE (la)
PROPOSED CHANGES TO THE FACILITY OPERATING LICENSES AND RADIOACTIVE MATERIALS LICENSE
- 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 (9)
Control Room Envelope Habitability Upon implementation of Amendment No. 105 adopting TSTF-448, Revision 3, the determination of control room envelope (CRE) unfiltered air inleakage as required by SR 3.7.9.4, in accordance with TS 5.5.16.c.i and the assessment of CRE habitability as required by 5.5.16.c.ii, shall be considered met. Following implementation:
(a)
The first performance of SR 3.7.9.4 in accordance with Specification 5.5.16.c.i shall be within the specified Frequency of 6 years, plus the 18-month allowance of SR 3.0.2, as measured from February 8, 2005, the date of the most recent successful tracer gas test, as-stated in the April 6, 2007 letter response to Generic Letter 2003-01, or within the next 18 months if the time period since the most recent tracer gas test is greater than 6 years.
(b)
The first performance of the periodic assessment of CRE habitability, Specification 5.5.16.c.ii, shall be within 3 years, plus the 9-month allowance of SR 3.0.2 as measured from February 8, 2005, the date of the most recent successful tracer gas test, as stated in-the April 6, 2007 letter response to Generic Letter 2003-01, or within the next 9 months if the time period since the most recent successful tracer gas test is greater than 3 years.
D.
The facility requires an exemption from certain requirements of 10 CFR 50.46(a)(1). This includes an exemption from 50.46(a)(1), that emergency core cooling system (ECCS) performance be calculated in accordance with an acceptable calculational model which conforms to the provisions in Appendix K (SER dated April 18, 1978). The exemption will expire upon receipt and approval of revised ECCS calculations. The aforementioned exemption is authorized by law and will not endanger life property or the common defense and security and is otherwise in the public interest. Therefore, the exemption is hereby granted pursuant to 10 CFR 50.12.
E.
Exelon Generation The-leensee 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 5 of 6
ENCLOSURE (la)
PROPOSED CHANGES TO THE FACILITY OPERATING LICENSES AND RADIOACTIVE MATERIALS LICENSE Miscellaneous Amendments and Search Requirements revisions to 10 CFR 73.55 (51 FR 27827 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: "R. E. Ginna Nuclear Power Plant Security Plan, Training and Qualification Plan, and Safeguards Contingency Plan," submitted by letter dated May 15, 2006. Exelon Generation The-ikensee shall fully implement and maintain in effect all provisions of the Commission-approved cyber security plan (CSP), including changes made pursuant to the authority of 10 CFR 50.90 and 10 CFR 50.54(p). The licensee's CSP was approved by License Amendment No. 113.
F.
The Updated Final Safety Analysis Report supplement, submitted pursuant to 10 CFR 54.21 (d), describes certain future activities to be completed prior to the period of extended operation. Ginna LLC shall complete these activities no later than September 18, 2009, and shall notify the Commission in writing when implementation of these activities is complete and can be verified by NRC inspection.
The Updated Final Safety Analysis Report supplement, as revised, shall be included in the next scheduled update to the Updated Final Safety Analysis Report required by 10 CFR 50.71 (e)(4) following issuance of this renewed license. Until that update is complete, the licensee i
bam LLC may make changes to the programs and activities described in the supplement without prior Commission approval, provided that the licensee --ma LbG evaluates each such change pursuant to the criteria set forth in 10 CFR 50.59 and otherwise complies with the requirements in that section.
G.
All capsules in the reactor vessel that are removed and tested must meet the test procedures and reporting requirements of ASTM E 185-82 to the extent practicable for the configuration of the specimens in the capsule. Any changes to the capsule withdrawal schedule, including spare capsules, must be approved by the NRC prior to implementation. Any capsules placed in storage must be maintained for future insertion, unless approved by the NRC.
H.
This renewed license is effective as of the date of issuance and shall expire at midnight on September 18, 2029.
6 of 6
ENCLOSURE (1b)
NO SIGNIFICANT HAZARDS CONSIDERATION DETERMINATION Constellation Energy Nuclear Group, LLC August 6, 2013
ENCLOSURE (1b)
NO SIGNIFICANT HAZARDS CONSIDERATION DETERMINATION The proposed changes to the licenses are administrative in nature including a new footnote in each license to reflect the transfers of the operating authority in Calvert Cliffs Nuclear Power Plant, Unit Nos. I & 2; Nine Mile Point Nuclear Station, Unit Nos. 1 & 2; and R.E. Ginna Nuclear Power Plant (the Facilities) from Calvert Cliffs Nuclear Power Plant, LLC; Nine Mile Point Nuclear Station, LLC; and R.E. Ginna Nuclear Power Plant, LLC to Exelon Generation Company, LLC.
In its regulations, at 10 CFR 2.1315, the Nuclear Regulatory Commission ("NRC") has made a generic determination regarding no significant hazards consideration determinations required by 10 CFR 50.92.
The determination is applicable to license amendments involving license transfers. In brief, the rule states that the NRC has determined generically that any amendment to the license of a utilization facility which does no more than conform the license to reflect the transfer action involves no significant hazards consideration. The proposed changes contained in this license amendment application are intended solely to conform the Facilities' Licenses to reflect the change in operating authority as a result of the license transfers and thus meet the criteria specified by 10 CFR 2.1315.
1 of I
ATTACHMENT (2O PRE-AND POST-TRANSFER ORGANIZATIONAL STRUCTURES Constellation Energy Nuclear Group, LLC August 6, 2013
ATTACHMENT (2)
PRE-AND POST-TRANSFER ORGANIZATIONAL STRUCTURES FIGURE 1: Pre-Transfer Organization CN = Constellation Nuclear, LLC CENG = Constellation Energy Nuclear Group, LLC CE Nuclear = CE Nuclear, LLC CHL = Constellation Holdings, LLC CNPP = Constellation Nuclear Power Plants, LLC CPSGL = Constellation Power Source Generation, LLC*
CPSGI = Constellation Power Source Generation, Inc.
EVC = Exelon Ventures Company, LLC EDF Inc. = EDF Incorporated EDF International = Ilectriciti de France International S.A.
ExGen = Exelon Generation Company, LLC SHWPC = Safe Harbor Water Power Corp.
- Planned per May 9, 2013 CENG letter.
1 of 2
ATTACHMENT (2)
PRE-AND POST-TRANSFER SIMPLIFIED ORGANIZATIONS FIGURE 2: Post-Transfer Organization CN = Constellation Nuclear, LLC CENG = Constellation Energy Nuclear Group, LLC CE Nuclear = CE Nuclear, LLC CHL = Constellation Holdings, LLC CNPP = Constellation Nuclear Power Plants, LLC CPSGL = Constellation Power Source Generation, LLC*
CPSGI = Constellation Power Source Generation, Inc.
EVC = Exelon Ventures Company, LLC EDF Inc. = EDF Incorporated EDF International = ltlectriciti de France International S.A.
ExGen = Exelon Generation Company, LLC SHWPC = Safe Harbor Water Power Corp.
- Planned per May 9, 2013 CENG letter.
2 of 2
ATTACHMENT (3)
GENERAL CORPORATE INFORMATION REGARDING CONSTELLATION ENERGY NUCLEAR GROUP, LLC AND EXELON GENERATION COMPANY Constellation Energy Nuclear Group, LLC August 6, 2013
ATTACHMENT (3)
GENERAL CORPORATE INFORMATION REGARDING CONSTELLATION ENERGY NUCLEAR GROUP, LLC AND EXELON GENERATION COMPANY NAME:
Exelon Corporation STATE OF Pennsylvania INCORPORATION
& CORPORATE Corporation FORM:
BUSINESS 10 South
Dearborn Street,
Chicago, IL 60603 ADDRESS:
DIRECTORS OR Mayo Shattuck MANAGEMENT Christopher M. Crane COMMITTEE:
Anthony K. Anderson Ann C. Berzin (All are US citizens)
John A. Canning, Jr.
Yves C. De Balmann Nicholas DeBenedictis Judge Nelson A. Diaz Sue Ling Gin Paul L. Joskow Robert J. Lawless Admiral Richard W. Mies William C. Richardson Thomas J. Ridge John W. Rogers, Jr.
Stephen D. Steinour EXECUTIVE Christopher M. Crane - Chief Executive Officer, President PERSONNEL:
Mayo A. Shattuck III - Executive Chairman Kenneth W. Cornew - Executive Vice President, Chief Commercial Officer Denis P. O'Brien - Senior Executive Vice President Ruth Ann M. Gillis - Executive Vice President, Chief Administrative Officer William A. Von Hoene Jr. - Senior Executive Vice President, Chief Strategy Officer Jonathan W. Thayer - Executive Vice President, Chief Financial Officer Joseph R. Glace - Senior Vice President, Chief Risk Officer Duane M. DesParte - Vice President, Corporate Controller 1 of 11
ATTACHMENT (3)
GENERAL CORPORATE INFORMATION REGARDING CONSTELLATION ENERGY NUCLEAR GROUP, LLC AND EXELON GENERATION COMPANY NAME:
Exelon Ventures Company, LLC STATE OF INCORPORATION Delaware
& CORPORATE FORM:
Limited Liability Company BUSINESS ADDRESS:
10 South
Dearborn Street,
4 9 th Floor Chicago, IL 60603 DIRECTORS OR MANAGEMENT None (member managed by Exelon Corporation)
COMMITTEE:
EXECUTIVE Christopher M. Crane, President and Chief Executive Officer PERSONNEL:
Thomas D. Terry, Vice President, Taxes Stacie M. Frank, Treasurer Bruce G. Wilson, Secretary 2of 11
ATTACHMENT (3)
GENERAL CORPORATE INFORMATION REGARDING CONSTELLATION ENERGY NUCLEAR GROUP, LLC AND EXELON GENERATION COMPANY NAME:
Exelon Generation Company, LLC STATE OF Pennsylvania INCORPORATION
& CORPORATE Limited Liability Company FORM:
BUSINESS Exelon Generation Company, LLC: 300 Exelon Way, Kennett Square, PA ADDRESS:
19348 DIRECTORS OR None (member managed by Exelon Ventures Company, LLC)
MANAGEMENT COMMITTEE:
EXECUTIVE Christopher M. Crane - President PERSONNEL:
Michael J. lPacilio - Senior Vice President, Chief Nuclear Officer Ronald DeGregorio - Senior Vice President Bryan P. Wright - Senior Vice President, Chief Financial Officer Robert Aiken - Vice President, Controller 3 of I1
ATTACHMENT (3)
GENERAL CORPORATE INFORMATION REGARDING CONSTELLATION ENERGY NUCLEAR GROUP, LLC AND EXELON GENERATION COMPANY NAME:
Constellation Holdings, LLC STATE OF Maryland INCORPORATION
& CORPORATE Limited Liability Company FORM:
BUSINESS 100 Constellation Way, Suite 1800P ADDRESS:
Baltimore, Maryland, 21202 DIRECTORS Ronald J. DeGregorio Joseph Nigro OFFICERS John F. Barnes, Vice President Vidyanand Swaminathan, Vice President Thomas D. Terry, Vice President Taxes Stacie M. Frank, Treasurer Bruce G. Wilson, Secretary 4 of 11
ATTACHMENT (3)
GENERAL CORPORATE INFORMATION REGARDING CONSTELLATION ENERGY NUCLEAR GROUP, LLC AND EXELON GENERATION COMPANY NAME:
Constellation Nuclear, LLC STATE OF Delaware INCORPORATION
& CORPORATE Limited Liability Company FORM:
BUSINESS 100 Constellation Way, Suite 1800P ADDRESS:
Baltimore, Maryland, 21202 DIRECTORS OR Christopher M. Crane MANAGEMENT Michael J. Pacilio COMMITTEE:
EXECUTIVE Christopher M. Crane, Chairman of the Board PERSONNEL:
Michael J. Pacilio, President Thomas D. Terry, Vice President, Taxes Stacie M. Frank, Treasurer Bruce G. Wilson, Secretary 5 of I1
ATTACHMENT (3)
GENERAL CORPORATE INFORMATION REGARDING CONSTELLATION ENERGY NUCLEAR GROUP, LLC AND EXELON GENERATION COMPANY NAME:
CE Nuclear, LLC STATE OF Delaware INCORPORATION
& CORPORATE Limited Liability Company FORM:
BUSINESS 100 Constellation Way, Suite 1800P ADDRESS:
Baltimore, Maryland, 21202 DIRECTORS OR Christopher M. Crane MANAGEMENT Michael J. Pacilio COMMITTEE:
EXECUTIVE Christopher M. Crane, Chairman of the Board PERSONNEL:
Michael J. Pacilio, President Thomas D. Terry, Vice President, Taxes Stacie M. Frank, Treasurer Bruce G. Wilson, Secretary 6of 11
ATTACHMENT (3)
GENERAL CORPORATE INFORMATION REGARDING CONSTELLATION ENERGY NUCLEAR GROUP, LLC AND EXELON GENERATION COMPANY NAME:
Constellation Energy Nuclear Group, LLC STATE OF Maryland INCORPORATION
& CORPORATE Limited Liability Company FORM:
BUSINESS 100 Constellation Way, Suite 1800P ADDRESS:
Baltimore, Maryland, 21202 DIRECTORS OR William A. Von Hoene, Chairman MANAGEMENT Eric Bret,* Vice Chairman COMMITTEE:
Patrick Blandin*
J. Bradley Fewell Jeffrey M Johnson Dominique Miniere*
Michael J. Pacilio Carol R. Peterson Jeffrey R. Williams Steven Wolfram EXECUTIVE Mary G. Korsnick, Acting Chief Executive Officer, President, and Chief PERSONNEL:
Nuclear Officer Bernard Minvielle,* Senior Vice President, Chief Financial Officer Susan Collins, Senior Vice President Human Resources Steven L. Miller, Senior Vice President, Secretary, and General Counsel Stephen A. Mormann, Vice President - Financial Services and Treasurer Gene Van Slyke, Senior Vice President, Support Services Christopher Costanzo, Vice President - Nine Mile Point James A. Spina, Vice President - Corporate Site Operations Joseph Pacher, Vice President - Ginna George Gellrich Vice President Calvert Cliffs
- Citizen of France.
7of 11
ATTACHMENT (3)
GENERAL CORPORATE INFORMATION REGARDING CONSTELLATION ENERGY NUCLEAR GROUP, LLC AND EXELON GENERATION COMPANY NAME:
Constellation Nuclear Power Plants, LLC STATE OF Delaware INCORPORATION
& CORPORATE Limited Liability Company FORM:
BUSINESS 100 Constellation Way, Suite 1800P ADDRESS:
Baltimore, Maryland, 21202 DIRECTORS OR None (member managed by Constellation Energy Nuclear Group, LLC)
MANAGEMENT COMMITTEE:
EXECUTIVE Mary G Korsnick, President PERSONNEL:
Stephen A. Mormann, Treasurer Steven L. Miller, Secretary 8 of 11
ATTACHMENT (3)
GENERAL CORPORATE INFORMATION REGARDING CONSTELLATION ENERGY NUCLEAR GROUP, LLC AND EXELON GENERATION COMPANY NAME:
Calvert Cliffs Nuclear Power Plant, LLC STATE OF Maryland INCORPORATION
& CORPORATE Limited Liability Company FORM:
BUSINESS 100 Constellation Way, Suite 1800P ADDRESS:
Baltimore, Maryland, 21202 DIRECTORS OR None (member managed by Constellation Nuclear Power Plants, LLC)
MANAGEMENT COMMITTEE:
EXECUTIVE Mary G Korsnick, President PERSONNEL:
George H. Gellrich - Vice President Stephen A. Mormann, Treasurer Steven L. Miller, Secretary 9 of II
ATTACHMENT (3)
GENERAL CORPORATE INFORMATION REGARDING CONSTELLATION ENERGY NUCLEAR GROUP, LLC AND EXELON GENERATION COMPANY NAME:
Nine Mile Point Nuclear Station, LLC STATE OF Delaware INCORPORATION
& CORPORATE Limited Liability Company FORM:
BUSINESS 100 Constellation Way, Suite 1800P ADDRESS:
Baltimore, Maryland, 21202 DIRECTORS OR None (member managed by Constellation Nuclear Power Plants, LLC)
MANAGEMENT COMMITTEE:
EXECUTIVE Mary G Korsnick, President PERSONNEL:
Christopher Costanzo, Vice President - Nine Mile Point Stephen A. Mormann, Treasurer Steven L. Miller, Secretary 10of 11
ATTACHMENT (3)
GENERAL CORPORATE INFORMATION REGARDING CONSTELLATION ENERGY NUCLEAR GROUP, LLC AND EXELON GENERATION COMPANY NAME:
R.E. Ginna Nuclear Power Plant, LLC STATE OF Maryland INCORPORATION
& CORPORATE Limited Liability Company FORM:
BUSINESS 100 Constellation Way, Suite 1800P ADDRESS:
Baltimore, Maryland, 21202 DIRECTORS OR None (member managed by Constellation Nuclear Power Plants, LLC)
MANAGEMENT COMMITTEE:
EXECUTIVE Mary G Korsnick, President PERSONNEL:
Joseph Pacher, Vice President - Ginna Stephen A. Mormann, Treasurer Steven L. Miller, Secretary 11 of 11
ATTACHMENT (4)
FORM OF NUCLEAR OPERATING SERVICES AGREEMENT Constellation Energy Nuclear Group, LLC August 6, 2013
NUCLEAR OPERATING SERVICES AGREEMENT This Nuclear Operating Services Agreement (this "Agreement" or "NOSA") dated as of (the "Commencement Date") is entered into by and among Exelon Generation Company, LLC, a Pennsylvania limited liability company ("Operator"), Constellation Energy Nuclear Group, LLC, a Maryland limited liability company ("CENG"), Calvert Cliffs Nuclear Power Plant, LLC, a Maryland limited liability company, Nine Mile Point Nuclear Station, LLC, a Delaware limited liability company, and R. E. Ginna Nuclear Power Plant, LLC, a Maryland limited liability company (together with CENG, "Owners"). Operator and Owners are referred to individually herein as a "Party" and collectively herein as the "Parties." Any terms not herein defined shall have the meanings given to them in the Operating Agreement.
RECITALS WHEREAS, Owners desire to engage the services of a qualified operator to provide corporate, operational and managerial support services and other services for the Facilities (as defined herein);
WHEREAS, Operator has the requisite experience and expertise in providing corporate, operational and managerial support services and possesses the resources and capabilities to provide such services for CENG and the Facilities; and WHEREAS, Owners desire to engage Operator to perform the Services (as defined herein) and Operator desires to perform such Services as provided herein; NOW THEREFORE, in consideration for the premises and the representations, warranties, and covenants contained herein, and for other good and valuable consideration, the sufficiency and receipt of which are hereby acknowledged, the Parties, intending to be legally bound hereby, agree as follows:
ARTICLE I DEFINITIONS 1.1 Definitions.
As used in this Agreement, the following terms shall have the meanings indicated:
"Act" means the Atomic Energy Act of 1954, as amended.
"Affiliate" means, with respect to any Person, any other Person directly or indirectly Controlled by, Controlling or under common Control with such Person. For purposes of this Agreement, the Owners shall not be considered Affiliates of Operator or its other Affiliates.
"Agreement" has the meaning set forth in the preamble.
"Allocated Costs" means the costs incurred by Operator associated with providing the Services (other than Direct Costs) allocated to each nuclear facility in the Operator's Fleet in accordance with Section 7.1(b).
"Applicable Law" means any federal, state or local statute, law, rule, regulation, code, ordinance, judgment, decree or writ of any Governmental Authority, and any official I
interpretations thereof, regulating, relating to or imposing liability or standards of conduct concerning Owners, Operator, the Sites, the Facilities or the performance of the Services.
"Board" means the Board of Directors of CENG.
"CFAM" means Corporate Functional Area Manager provided by Operator.
"Commencement Date" has the meaning set forth in the Preamble.
"Control" means the possession, directly or indirectly, of the power to direct or cause the direction of the management and policies of an entity, whether through the ownership of securities, by contract or otherwise.
The terms "Controlled" and "Controlling" shall have correlative meanings.
"Decommission" and "Decommissioning" mean (a) the dismantlement and removal of the Facilities and any reduction or removal of radioactivity at, on, under or in the Site to a level that permits the release of all or any specified portion of the Site for unrestricted use, as specified in 10 CFR 20.1402); (b) all other activities necessary for the retirement, dismantlement, decontamination and/or storage of the Facilities and Spent Nuclear Fuel and other materials to comply with all Applicable Law, including the applicable requirements of the Act and the NRC rules, regulations, orders and pronouncements thereunder; and (c) any other environmental remediation and Site restoration of or relating to the Site or the Facilities as required by Applicable Law.
"Direct Cost" has the meaning set forth in Section 7.1(a).
"Exelon Nuclear Management Model" means Operator's proprietary nuclear management model and related management systems, including software programs, policies, processes and procedures relative to the management, operation and maintenance of Operator's nuclear generating facilities, as updated by Operator from time to time.
"Facility" means each of (i) Calvert Cliffs Nuclear Power Plant, Unit Nos. 1 and 2 (Operating Licenses DPR-53 and DPR-69); (ii) Calvert Cliffs Independent Spent Fuel Storage Installation Facility (Materials License No. SNM-2505); (iii) Nine Mile Point Nuclear Station, Unit Nos. 1 and 2 (Operating Licenses DPR 63 and NPF 69); and (iv) R. E. Ginna Nuclear Power Plant (Operating License DPR 18).
"Fiscal Year" means the year ending on December 31 of each year.
"Good Utility Practice" means at any time those practices, methods, techniques and standards in effect at the time of performance of the Services hereunder that are commonly used in the United States in prudent management and maintenance of equipment of, and the provision of operational support services for, nuclear generating stations. Without limiting the foregoing, "Good Utility Practice" is also intended to be the practices, methods, techniques and standards utilized by Operator in operational and managerial support services for its owned, affiliated, managed or operated nuclear generating facilities located in the United States, and as generally accepted in the industry with respect to the management and maintenance of, and the provision of services for, nuclear generating stations located in the United States and the exercise of that degree of skill, diligence, prudence and foresight which would reasonably and ordinarily be expected at such time from a skilled and experienced provider of services similar to the Services.
"Governmental Approval" means any authorization, consent, approval, license, ruling, waiver, permit, certification, exemption, filing, declaration or registration by or with any Governmental Authority having jurisdiction over any of the Sites, the Facilities, the Services or the Parties.
"Governmental Authority" means all federal, state and local governments and all agencies, authorities, departments, instrumentalities, courts, or other subdivisions of each having executive, legislative, judicial, regulatory or administrative jurisdiction over any of the Sites, the Facilities, the Services or the Parties.
"INPO Allocation Method" means the method for allocating costs incurred by Operator in respect of Operator's Fleet to each nuclear facility in Operator's Fleet in the same manner as the Institute of Nuclear Power Operations allocates its fees, whereby each of the Sites with an operating reactor is allocated three (3) points and each operating reactor in Operator's Fleet is allocated one (1) point (e.g., four (4) points for single units, five (5) points for dual units). For each billing period, the Allocated Costs charged to each Facility will be equal to (A) the aggregate amount of Allocated Costs incurred by Operator during such billing period; multiplied by (B) a fraction, the numerator of which is the INPO points attributed to such Facility, and the denominator of which is the total number of INPO points attributed to all facilities in Operator's Fleet.
"IP" means any information and any other intellectual property of any type whatsoever, in any tangible or intangible form or medium, and all rights associated therewith in any jurisdiction, including any proprietary management processes of Operator and its Affiliates, and the Exelon Nuclear Management Model.
"NRC" means the United States Nuclear Regulatory Commission and any successor agency established in the United States for the regulation of civilian nuclear power.
"Operating Licenses" means the Operating Licenses and Materials License for the Facilities issued to Owners pursuant to the regulations of the NRC.
"Operating Agreement" means the Fourth Amended and Restated Operating Agreement of CENG, dated as of the date hereof.
"Operator" has the meaning set forth in the preamble.
"Operator Personnel" means the personnel from Operator's or any of its Subcontractors' organizations, agents, counsel, and advisors performing Services under this Agreement.
"Operator's Fleet" means the Facilities taken together with each other nuclear facility for which Operator is the licensed operator.
"Owner Contracts" means any other contracts to which the Owners are a party for (1) procuring engineering or materials, tools, supplies or equipment necessary for Capital Expenditures or repairs of the Facilities, (2) construction of any capital expenditures with respect to the Facilities, (3) the repair of the Facilities, (4) the purchasing or leasing of equipment with respect to the Facilities, (5) utilities necessary for the operation of the Facilities or (6) any other material services; provided that "Owner Contracts" do not include this Agreement, the Subcontracts, or any of Owners' commercial agreements not directly related to operations (such as financing and power purchase agreements).
"Party" or "Parties" has the meaning set forth in the preamble.
"Person" means an individual, a partnership, a limited liability company, a corporation, an association, a joint stock company, a trust, a joint venture, an unincorporated organization, or any federal, state, local or other governmental entity, body or authority.
"Reimbursable Costs" has the meaning set forth in Section 7.2.
"Services" has the meaning set forth in Section 3.1.
"Site" means the real property on which each of the Facilities is located including surrounding land owned by the Owners or their Affiliates.
"Subcontract" means any agreement by Operator with a Subcontractor for the performance of any portion of the Services.
"Subcontractor" means any vendor, supplier, manufacturer, material man, operator or subcontractor (other than Operator or its affiliates) that is contracted directly with Operator to perform any part of the Services or providing other services or supplies in connection with the Services.
"Taxes" means all fees, taxes (including sales taxes, use taxes, stamp taxes, value-added taxes, ad valorem taxes and property taxes (personal and real, tangible and intangible)), levies, assessments, customs duties, withholdings and other charges and impositions of any nature, other than taxes based on net income or net worth, plus all related interest, penalties, fines and additions to tax, now or hereafter imposed by any Governmental Authority or other taxing authority.
"Term" has the meaning set forth in Section 2.1.
"Termination Date" has the meaning set forth in Section 10.3(a).
"Transition Period" has the meaning set forth in Section 10.4.
ARTICLE II TERM; COMMENCEMENT OF SERVICES 2.1 Term.
The term of this Agreement (the "Term") shall begin on the Commencement Date and shall continue through Decommissioning unless terminated earlier as provided herein.
ARTICLE III OPERATOR RESPONSIBILITIES; SCOPE OF RELATIONSHIP 3.1 Services. Subject to the terms of this Agreement and the Operating Agreement, Operator shall (a) provide corporate and administrative services necessary for the operation of CENG to operate its business and that of its Subsidiaries, in accordance with historic practice and with Applicable Law and contractual obligations, including the obligations of CENG under the Operating Agreement, and (b) manage, operate, and maintain the Facilities in accordance with the Operating Licenses and Applicable Law, and on behalf of Owners on a basis consistent
in all material respects with Good Utility Practices and the Exelon Nuclear Management Model (together, the "Services").
3.2 Contract Management Services. Without limiting the foregoing, Operator will assist Owners with the implementation and management of any Owner Contracts.
Notwithstanding the foregoing, Owners shall remain solely responsible and liable for the Owner Contracts. Operator may, subject to the terms of the Operating Agreement, from time to time act as Owners' agent on Owners' behalf with respect to managing and overseeing the Owner Contracts.
3.3 Relationship of the Parties. In performing the Services, Operator shall be an independent contractor of Owners.
To the extent necessary to comply with regulatory requirements, CENG governance documents and existing corporate law, Operator personnel conducting daily management activities will function as personnel of the Owners with dual reporting responsibility to the Board and the senior officers of Operator.
3.4 Subcontractors. Operator may contract a Subcontractor to perform any part or parts of the Services. Notwithstanding the foregoing, Operator shall at all times remain solely responsible for the quality, timeliness and professionalism of all Subcontractors and the performance of the Services. Operator shall be fully responsible for the acts and omissions of its Subcontractors. For the avoidance of doubt, Operator shall remain solely responsible and liable for any Subcontractor contracts.
3.5 Reports. Operator shall provide Owners with standard operational and financial reports in accordance with its Exelon Nuclear Management Model, which shall substantially include the content described in Exhibit A.
3.6 Employees.
Services will be performed by Operator employees, Owner employees or both. Operator may, subject to the terms hereof, elect to transfer employees from employment by Owners to employment by Operator, second Operator employees to provide Services to Owners or transfer employees from employment by Operator to employment by Owners (provided that if Operator transfers Operator employees to employment by Owners, Operator will indemnify Owners for liabilities arising solely from such employment, other than Allocated Costs or Direct Costs chargeable under the terms of this Agreement). Operator may elect to assign employees of Owners on a short-term basis to provide services to operations of Operator other than the Facilities or CENG, so long as Owners are compensated, in a manner consistent with the allocation of Direct Costs in this Agreement, for the use of those employees and Operator indemnifies Owners solely for any liability arising from the performance of the Owners' employees at a location other than the Facilities.
ARTICLE IV OWNERS' RESPONSIBILITIES 4.1 Turnover of Facilities. On the Commencement Date, Owners shall transition to Operator day-to-day management activities of the Facilities, provided that Owners and Operator have (i) all approvals required by Applicable Law for Operator to perform the Services and (ii) all equipment, materials, spare parts and consumables necessary for Operator to provide the Services. Within a reasonable period of time after the Commencement Date, Owners shall provide Operator with access to (a) all original equipment manufacturer instructions and manuals relating to the equipment at the Facilities, (b) all specifications, analyses, operating manuals and instructions, drawings (including as-built drawings), (c) all information necessary to
comply with Owners' quality assurance plan and (d) all records related to the construction of the Facilities necessary for Operator to perform the Services.
4.2 Liabilities. Owners shall be responsible for the performance or discharge of any liabilities relating to the Facilities arising prior to the Commencement Date, except for those liabilities for which Operator is expressly liable under the terms of this Agreement. From and after the Commencement Date, each Party shall be responsible for the performance or discharge of their respective liabilities relating to the Facilities.
4.3 Cooperation. As necessary, Owners shall furnish to Operator the information or assistance as may be required for Operator to comply with the terms of this Agreement and for the expeditious and orderly performance of the Services by Operator.
4.4 Access to the Facilities and the Site. Subject to Owners' security and access rules and regulations, Owners shall, to the extent not already in Operator's possession, (a) provide access to the Facilities and the Site to Operator as required for performance of the Services and (b) provide Operator with access to copies of all licenses, easements or other agreements Owners have entered into regarding access to the Facilities and the Sites that affect Operator or the Services. Owners shall coordinate with Operator regarding initial entry onto the Site and into the Facilities, or any part thereof, shall ensure that Operator has the full and uninterrupted benefit of all such licenses, easements or other agreements and shall ensure that such licenses, easements or other agreements do not adversely affect Operator's performance of the Services.
4.5 Owner Information. Owners shall act in good faith to assure that all information and materials given by Owners to Operator are accurate when given in all material respects.
4.6 Joint Contracting Efforts.
Subject to compliance with Applicable Law, the Parties shall use their reasonable efforts to obtain favorable pricing terms applicable to significant contracts for similar services, materials, and equipment relating to the Facilities, including, without limitation, similar contracts provided between Operator and its Affiliates.
Operator and Owner agree that Operator shall act as agent of Owner to enter into any new Owner Contracts.
4.7 Appointment as Agent.
Owners do hereby grant to Operator, as agent for Owners, individually or collectively, the power and authority to exercise in accordance with applicable laws, and subject to the restrictions of the Operating Agreement, the rights of Owners under, and to execute, modify, amend or terminate, any contracts, including without limitation, leases easements, agreements, purchase orders, licenses, permits and privileges relating to the operation and maintenance of, and making capital improvements to, the Facilities.
Nonetheless, unless otherwise agreed in writing, Owners shall remain solely responsible for each of the Owner Contracts.
ARTICLE V OPERATOR'S RESPONSIBILITIES 5.1 Governmental Approvals. Operator shall support and assist Owners as may be reasonably required in order for Owners to obtain and maintain all Governmental Approvals (a) required by Applicable Law to operate the Facilities and (b) required by Applicable Law for Operator to perform the Services, including, without limitation, the Operating Licenses and those related to nuclear safety.
5.2 Operating Licenses. Operator will hold and maintain the Operating Licenses required to operate the Facilities for the duration of the Term and will take all reasonable actions to ensure that the Operating Licenses are transferred to Operator upon the Commencement Date.
5.3 Assistance to Owners. Operator shall furnish to Owners the information or assistance as may be reasonably necessary in order to enable Owners to comply with their obligations under Article 4 and for the expeditious and orderly operation of the Facilities.
5.4 Procurement Assistance. Subject to compliance with Applicable Law, Operator shall use its best efforts to obtain favorable pricing terms applicable to significant contracts for similar services, materials, and equipment relating to the Facilities, including, without limitation, similar contracts provided between Operator and its Affiliates.
5.5 Performance Standards.
Operator shall perform the Services: (a) in compliance with the terms of this Agreement; (b) in compliance with the standards and objectives of the Exelon Nuclear Management Model as adapted to the Facilities, as the same may change from time to time; and (c) in a good and workmanlike manner in accordance with the Operating Licenses and Applicable Law, and consistent with Good Utility Practice. Operator shall perform its obligations, and shall allocate resources, under this agreement on a non-discriminatory basis as between the operations of the Owners, on the one hand, and those of Operator and its Affiliates, on the other hand, and in a manner consistent with the Operating Licenses, Applicable Law, and consistent with Good Utility Practice.
5.6 Taxes and Benefits.
During the Term of this Agreement Operator shall be solely responsible for providing or causing to be provided to each member of Operator Personnel his or her compensation and benefits, and shall further be solely responsible to issue or cause to issue IRS W-2 forms for Operator Personnel and for all taxes, workers' compensation, social security, unemployment, and other contributions for benefits measured by salary payable to Operator Personnel.
5.7 Operator Employees. Except as provided in Section 7.1, Operator, and not CENG, shall be solely responsible for (i) all compensation, benefits and other employer obligations in respect of employees of Operator or its Affiliates providing Services under this Agreement; provided that for any employees transferred from Owners to Operator, the Owners shall remain liable for any and all compensation, benefits and other employer obligations arising from the time before the transfer, (ii) training and oversight of employees of Operator or its Affiliates providing Services under this Agreement and (iii) subject to the terms hereof, all employment decisions with respect to employees of Operator or its Affiliates providing Services under this Agreement.
ARTICLE VI BUDGET 6.1 Annual Budget. Operator shall prepare and propose an Annual Budget and a Business Plan in accordance with Section 7.4(a) of the Operating Agreement for consideration by the Board as outlined therein.
6.2 Provisional Budget. If a proposed Annual Budget is not adopted by the Board prior to the end of the third quarter of the Fiscal Year, then the Provisional Budget, as described in Section 7.4(b) and Section 7.4(c) of the Operating Agreement, shall become effective.
ARTICLE VII COMPENSATION AND PAYMENT 7.1 Compensation.
From and after the Commencement Date and continuing throughout the Term, Operator shall invoice Owners for the following costs incurred by Operator, its Subcontractors, or its Affiliates in performance of the Services:
(a)
Direct Costs. Operator will invoice the Owners for the direct costs of Operator of providing any Service that would not constitute Allocated Cost pursuant to Section 7.1(b), including without limitation: (i) the costs of the Operator personnel performing the Services at the Facilities, including travel and relocation expenses where applicable; (ii) any costs incurred by Operator associated with improvements to existing systems, integration into Operator systems, and software programs required to implement the Exelon Nuclear Management Model and "CFAM" philosophy at each Facility; and (iii) all costs incurred by Operator (including the cost of any Subcontractors) related to materials, services, equipment, Taxes (other than those imposed in respect of income or revenues of Operator) and other expenditures (as an agent of the Owner) that are required in the good faith judgment of the Operator to operate the Facilities in accordance with the Operating Agreement and Good Utility Practice, in each case as described in Exhibit B (such costs collectively, the "Direct Costs").
The Direct Costs will be invoiced on a basis consistent with Operator's similar costs as invoiced to other nuclear facilities in Operators Fleet (as such costs are in effect from time to time) and subject to the then-current Annual Budget and Business Plan.
(b)
Allocated Costs. Commencing on the date hereof, Owners shall pay Operator a monthly charge for Allocated Costs based on the INPO Allocation Method, calculated as if the Facilities were included in Operator's Fleet as described in Exhibit B; provided that such allocation is non-discriminatory and on a basis consistent with Operator's allocation of similar costs as invoiced to other nuclear facilities in Operator's Fleet (as such costs are in effect from time to time) and subject to the then-current Annual Budget and Business Plan.
For avoidance of doubt, certain personnel-related reimbursements may be classified as Allocated Costs, including the travel and relocation expenses of certain personnel.
For the avoidance of doubt, in no event shall Allocated Costs include any item to the extent such item is also invoiced as a Direct Cost.
7.2 Invoices. By the 10th day of each month, Operator shall submit a detailed line-item description invoice to Owners providing appropriate supporting detail for all Allocated Costs and the Direct Costs (together the "Reimbursable Costs") incurred during the preceding month.
7.3 Payment. All Reimbursable Costs submitted on each invoice shall be paid via wire transfer in immediately available funds within 24 hours2.777778e-4 days <br />0.00667 hours <br />3.968254e-5 weeks <br />9.132e-6 months <br /> after the date of Owners' receipt of the invoice.
ARTICLE VIII TAXES 8.1 Taxes. Each Party shall be responsible for all Taxes to which it is subject, which Taxes arise out of or are in any way connected with this Agreement. If, under Applicable Law, Operator is required to collect any such Taxes from Owners, Operator shall invoice Owners for such Taxes and Owners shall pay the same to Operator or provide Operator with a valid
exemption certificate or other documentation acceptable under Applicable Law to substantiate Owners' exemption from such Taxes.
ARTICLE IX INSURANCE 9.1 Operator Insurance. Operator shall procure and maintain insurance coverage during the Term in the type and amount set forth in Section 13.17 and Section 13.18 of the Operating Agreement and in accordance with Good Utility Practice.
ARTICLE X TERMINATION 10.1 Owner Termination.
At any time after Operator (together with its Affiliates) ceases to hold, directly or indirectly, at least a 50% equity interest in CENG, CENG may terminate this Agreement for convenience by providing one year's prior written notice to Operator, subject to receipt of any required regulatory approvals, including the transfer of the Operating Licenses to a successor Operator; provided that Owners shall pay Operator on or before the effective date of termination Reimbursable Costs for Services performed prior to the Termination Date (as defined below).
10.2 Operator Termination. At any time after Operator (together with its Affiliates) ceases to hold, directly or indirectly, at least a 50% equity interest in CENG, Operator may terminate this Agreement for convenience by providing one year's prior written notice to Owners, subject to receipt of any required regulatory approvals, including the transfer of the Operating Licenses to a successor Operator; provided that Owners shall pay Operator on or before the effective date of termination Reimbursable Costs for Services performed prior to the Termination Date.
10.3 Actions upon Termination. Prior to the effective date of any termination under this Article 10, the Parties shall work in good faith to ensure a satisfactory transfer of responsibility in process and cooperate to obtain all Governmental Approvals (if any and to the extent allowed) required for such transfer. Upon a termination in accordance with Section 10.1 or Section 10.2, Operator shall:
(a) discontinue performance of the Services on the date specified in the notice of termination or suspension, which for the avoidance of doubt shall be one year from the notice date, unless otherwise agreed by the parties (the "Termination Date"),
(b) place no further orders or enter into any Subcontracts for items or Services unless required for standby, demobilization, remobilization or as otherwise provided in this Article 10; (c) subject to the terms of this Agreement, cooperate with Owners in the transfer to Owners of items or information and disposition of the Services in progress; (d) inventory and turn over to Owners all equipment and materials purchased by Operator and reimbursed by Owners in accordance with the terms of this Agreement and any other equipment or other items provided by Owners for performance of the terminated or suspended Services; and
(e) cooperate with Owners and their agents and representatives in the turnover of the Services and transition of the employees, as appropriate, to Owners (or their designated successor Operator in the event of termination) who shall provide operational support services for the Facilities.
(f)
From the receipt of the termination notice up to and including the Termination Date, Operator shall continue to perform the Services hereunder in accordance with Good Utility Practices and in accordance with the terms of this Agreement; provided that Operator shall be entitled to, and Owners shall pay to Operator, all compensation in accordance with this Agreement (including Reimbursable Costs payable under the terms of this Agreement and any additional reasonable out-of-pocket costs incurred in providing transition assistance to Owners or their successor Operator during such time).
10.4 Post-Termination Transition Period.
Owners' right to use the IP will automatically cease at the Termination Date; provided that Owner will be entitled to continue to use the IP on a transitional period for a period of 12 months following the Termination Date (such period, the "Transition Period") to the extent necessary to provide an orderly transition off of Operator's systems and software platforms.
During the Transition Period, Operator shall cooperate and provide reasonable assistance to Owners in effecting such IP transition; provided that Owner reimburses the Operator for Operator's actual cost of providing such transition services and permitting continued use of IP, determined in the same manner that costs are allocated and charged pursuant to Article VII of this Agreement.
ARTICLE Xl RECORDS 11.1 Records. In accordance with its standard corporate practices, Operator will at all times operate a system of accounting and maintain complete and accurate records and supporting documentation in relation to the performance of its obligations under this Agreement, provided that documentation related to the provision and performance of the Services shall be maintained for the greater of five years or as required by Applicable Law. Operator shall collaborate with and assist Owners to operate a system of accounting and maintain complete and accurate records in relation to the operation of the Facilities, including Services rendered by Operator (the "Records"). The intent is for the Records to be in accordance with Good Utility Practice to ensure that the Records will be at least sufficient to enable Owners and/or their authorized representatives to conduct thorough operational, technical, and regulatory audits related to the Facilities.
The Records will be maintained for the greater of (a) Operator's document retention program requirements or (b) as is required by Applicable Laws.
11.2 Audit. CENG shall have the reasonable right to conduct, or have conducted by an independent auditing firm, an audit and review of Operator's books and records but only to the extent that such books and records relate to costs charged by Operator to the Owners or other matters arising under this Agreement, at times reasonably requested by CENG during the term of this Agreement and for one year after the termination of Operator's obligations under this Agreement. In furtherance of this audit right, upon reasonable written notice, Operator shall make available to CENG or its independent auditing firm all relevant accounting and financial books and records and make commercially reasonable efforts to obtain from any of its subcontractors or suppliers such supporting documentation as may be requested by CENG but only to the extent that such accounting and financial books, records and documentation relate to costs charged by Operator to the Owners or other matters arising under this Agreement.
11.3 Information Rights. Operator will (i) use commercially reasonable efforts to notify Owners and EDF Inc. as promptly as reasonably possible of any material events relating to public safety, security, or events of a similar nature of interest to the general public that occur at the Facilities and (ii) use commercially reasonable efforts to periodically inform Owners and EDF Inc. of CENG's external communications strategy and any material changes thereto; provided that any delay or failure of Operator to notify Owners and EDF Inc. under subsections (i) and (ii) above shall not create any liability on behalf of Operator.
ARTICLE XII MISCELLANEOUS 12.1 Notices. Any notice pertaining to this Agreement shall be in writing and sent via facsimile transmittal, registered or certified mail (postage prepaid), hand delivery or by commercial overnight courier, to the other Party, at its respective address designated in this Agreement as set forth below. Each Party shall have the right to change the contact information set forth herein by sending a similar notice to the other Party in like manner. Notices, demands, offers or other written instruments shall be deemed to have been duly given on the date actually received by the intended recipient.
If to Operator:
Exelon Generation Company, LLC 200 Exelon Way, Kennett Square, Pennsylvania 19348 Attention: [j Facsimile No:
With a copy to:
Exelon Generation Company, LLC 200 Exelon Way, Kennett Square, Pennsylvania 19348 Attention:[ [
Facsimile No:
If to Owners:
Constellation Energy Nuclear Group, LLC Attention: Chief Nuclear Officer Facsimile No:
With a copy to:
EDF, S.A.
30 avenue de Wagram Paris 75008 France Phone: +33 1 40 42 85 01
Fax: +33 1 40 42 85 03 Attention: Secr6tare Gdn6ral 12.2 Complete Agreement. This Agreement sets forth the entire understanding of the Parties and supersedes any and all prior agreements, arrangements, or understandings relating to the subject matter hereof.
12.3 Construction of Agreement.
The Parties have participated jointly in the negotiation and drafting of this Agreement. In the event an ambiguity or question of intent or interpretation arises, this Agreement shall be construed as if drafted jointly by the Parties and no presumption or burden of proof shall arise favoring or disfavoring any Party by virtue of the authorship of any of the provisions of this Agreement.
12.4 Amendments. The terms of this Agreement shall be modified only by a written document signed by an authorized representative of each Party, which authorizes a change in this Agreement. No purported oral modification, waiver, or rescission of this Agreement by an employee or agent of any Party shall operate as a modification, waiver, or rescission of any of the provisions of this Agreement.
No course of prior dealing, usage of trade, and course of performance shall be used to modify, supplement, or explain any terms of this Agreement.
12.5 No Third Party Beneficiaries. A person who is not a Party to this Agreement may not enforce any of its terms and the provisions of this Agreement are intended for the sole benefit of Owners and Operator and there are no third party beneficiaries hereof, other than their permitted successors and assigns pursuant to the relevant provisions hereof, except that EDF Inc. as a Member of CENG (or its successor as Member of CENG) may enforce the rights of CENG under this Agreement in law or equity in respect of any breach of this Agreement by Operator and may exercise, on behalf of CENG, the audit rights set forth in Section 11.2.
12.6 Governing Law; Interpretation; Severability.
This Agreement shall be interpreted, governed and construed in accordance with the laws of State of Maryland, and excluding any conflict of laws rule or principle that might refer the governance or the construction of this Agreement to the law of another jurisdiction.
The provisions of this Agreement shall be interpreted where possible in a manner to sustain their legality and enforceability. The unenforceability of any provision of this Agreement in a specific situation shall not affect the enforceability of that provision in another situation or the remaining provisions of this Agreement. Subject to the terms of this Agreement, the Parties shall have all rights and remedies at law or in equity.
12.7 Assignment. No Party may assign its right, title, and interest in this Agreement to any other Person without the prior written consent of the other Parties; provided that Operator may assign or delegate all or a portion of its right, title and interest in this Agreement to an Affiliate without Owners' consent; provided, however, that no such assignment shall in any respect relieve Operator of its obligations under this Agreement.
12.8 Execution; Counterparts. This Agreement shall not be binding or effective until properly executed by each Party.
This Agreement may be executed in any number of counterparts, each of which shall be deemed to be an original and all of which shall constitute one and the same Agreement, and it shall not be necessary in making proof of this Agreement to produce or account for more than one such fully executed counterpart.
12.9 Survival. The following Articles and Sections shall survive termination of this Agreement: Articles 8 and 9 in addition to any other provisions which by their nature should, or by their express terms do, survive or extend beyond the Term of this Agreement.
12.10 Waiver. Either Party's waiver of any breach or failure to enforce any of the terms, covenants, conditions, or other provisions of this Agreement at any time shall not in any way affect, limit, modify, or waive that Party's right thereafter to enforce or compel strict compliance with every term, covenant, condition, or other provision hereof, any course of dealing or custom of the trade notwithstanding. All waivers of any term, covenant, condition or other provision of this Agreement must be given in writing.
IN WITNESS WHEREOF, the Parties have executed this Agreement through their duly authorized officers as of the Commencement Date.
OPERATOR: EXELON GENERATION COMPANY, LLC By:
Name:
Title:
OWNERS' PARENT: CONSTELLATION ENERGY NUCLEAR GROUP, LLC By:
Name:
Title:
OWNER: CALVERT CLIFFS NUCLEAR POWER PLANT, LLC By:_
Name:
Title:
OWNER: NINE MILE POINT NUCLEAR STATION, LLC By:_
Name:
Title:
OWNER: R.E. GINNA NUCLEAR POWER PLANT, LLC By:_
Name:
Title:
EXHIBIT A Reports Monthly financial reports, including actual vs. budget and variance analysis; examples include:
o Income statement per US GAAP; o
Balance sheet; o
Capital cash flow; o
Cash flow; and o
Purchase accounting/I.FRS for EDF.
Monthly operating performance reports, including actual vs. goals and trending; examples include:
o INPO index; o
Collective radiation exposure; o
OSHA indicator; and o
Safety system performance.
Monthly production reports, including performance against plan; examples include:
o Net generation; o
Capacity factor; o
Forced loss; and o
Outage duration.
" Annual benchmarking of safety, production and cost performance vs. entire industry.
" Annual business plan and budget.
Audit plans and results.
Long range financial and production plans (5 years).
EXHIBIT B Characterization of Costs to be Applied in NOSA For avoidance of doubt, the Services may include, but will not be limited to, those described under the subheadings below:
The following corporate nuclear support functions at Exelon Nuclear will be allocated costs through the INPO formula as Nuclear Corporate Services Chief Nuclear Officer and staff Nuclear oversight 0
Nuclear human resources o
Talent development o
Recruiting Labor relations Engineering and technical services governance and oversight o
Programs and design engineering o
Nuclear fuel procurement o
Project management o
Asset management Operational support services governance and oversight o
Operations oversight and nuclear duty office o
Maintenance and work management o
Radiation protection, chemistry and environmental o
Industrial safety o
Training Outage services o
Reactor and turbine maintenance o
Inspection services o
Vendor alliance management o
Outage planning and scheduling Decommissioning and spent fuel management Security Emergency preparedness Nuclear finance and accounting o
Financial reports o
Business planning Licensing and regulatory o
Common regulatory and industry fees o
Government affairs Payroll and associated employee costs and benefits of allocated employees Travel and living for business expenses of allocated employees Facilities rent and utilities The following nuclear support functions will be performed at the Sites and be direct costs Payroll and associated site employee costs and benefits Travel and living for business expenses of site employees
Materials, parts, equipment and chemicals
" Service contracts performed at the site Waste disposal Outage services Facilities cost The following Nuclear Services will not be performed at the Sites and will be direct costs
" Corporate managed site specific projects (e.g. license amendments, large equipment replacements)
Nuclear fuel design and analysis Financial support for co-owner billing Roving outage services support The following administrative functions will be allocated costs through the INPO formula as Nuclear Corporate Services Strategic supply and procurement IT support and development for fleet wide systems and equipment Payroll and accounts payable processing General legal support Benefits administration The following administrative functions will be performed at the Sites and will be direct costs IT staff and equipment Supply procurement and materials management functions Communications staff Human resources The following administrative functions will not be performed at the Sites and will be direct costs Legal support on specific matters relating to a site Property tax negotiation Labor negotiations Corporate managed site-specific projects Below is a depiction of the framework of direct and allocated cost within Exelon to aid in interpretation of various services that will be delivered.
Financial Structure Exelon BSC mý BSC Shared Services via MMF Allocation Exelon Gereration L.ýý sscSar sieEx' Direct and 1DS AOCedctvI EmbededEmbede Servcs (Iprt tome NuClwCeoeawlcunSC Sfh Servicesý CtFiVIcm andW 01Mle) AflOCetd will IN PO MetOd Blr rrttoeO C
W Mfor Nine Mile U2 Share Exelon Pick Up EDF Pick Up 50.01%
40.99%