ML13263A291

Licensee Guarantee of Payment of Deferred Premium 2013 Annual 10 CFR 140.21 Filing

ML13263A291
Person / Time
Site:	Palo Verde
Issue date:	09/13/2013
From:	Weber T Arizona Public Service Co
To:	Document Control Desk, Office of Nuclear Reactor Regulation
References
102-06770-TNW/RKR/KAR
Download: ML13263A291 (35)

Text

10 CFR 140.21 9aps Palo Verde Nuclear Generating Station PO Box 52034 102-06770-TNW/RKR/KAR Phoenix, Arizona 85072-2034 September 13, 2013 Mail Station 7636 ATTN: Document Control Desk U.S. Nuclear Regulatory Commission Washington, DC 20555-0001

Subject:

Palo Verde Nuclear Generating Station Licensee Guarantee of Payment of Deferred Premium 2013 Annual 10 CFR 140.21 Filing Pursuant to the requirements of 10 CFR 140.21, Arizona Public Service Company (APS),

for itself and on behalf of the Palo Verde Nuclear Generating Station (PVNGS)

Participants, has enclosed copies of the American Nuclear Insurers (ANI) Bond for Payment of Retrospective Premiums for each of the three PVNGS Units, together with the 2013 Annual Premium Endorsement evidencing payment for such bonds. The enclosed endorsements are summarized below. Southern California Edison submitted its Statement to the NRC in a letter dated May 23, 2013.

Secondary Endorsement Licensee Plant Financial Number and Protection Numbe Certificate # Purpose

" Arizona Public Service Company Palo Verde N - 0088 49 - 2013 Annual

" Salt River Project Agricultural Nuclear Premium Improvement and Power District Generating

" Public Service Company of New Station Unit 1 ANI Bond for Mexico Payment of Retrospective

" El Paso Electric Company Premiums

" Southern California Public Power Authority

• The Department of Water and Power of the City of Los Angeles

• Arizona Public Service Company Palo Verde N - 0107 50 - 2013 Annual Nuclear Premium

• Salt River Project Agricultural Generating Improvement and Power District Station Unit 2 ANI Bond for

" Public Service Company of New Payment of Mexico Retrospective

• El Paso Electric Company Premiums

" Southern California Public Power Authority

" The Department of Water and Power of the City of Los Angeles A member of the STARS (Strategic Teaming and Resource Sharing) Alliance /jDc~Jr Callaway

• Comanche Peak

• Diablo Canyon ° Palo Verde

• San Onofre

• South Texas

• Wolf Creek

ATTN: Document Control Desk U. S. Nuclear Regulatory Commission Licensee Guarantee of Payment of Deferred Premium 2013 Annual 10 CFR 140.21 Filing Page 2 Licensee Secondary Endorsement Plant Financial Number and Protection Numbe Certificate #

" Arizona Public Service Company Palo Verde N-0114 45 - 2013 Annual

" Salt River Project Agricultural Nuclear Premium Improvement and Power District Generating

" Public Service Company of New Station Unit 3 ANI Bond for Mexico Payment of

" El Paso Electric Company Retrospective

" Southern California Public Power Premiums Authority

" The Department of Water and Power of the City of Los Angeles No commitments are being made to the NRC by this letter. Should you need further information regarding this submittal, please contact Robert K. Roehler, Licensing Section Leader at (623) 393-5241.

Sincerely, Thomas N. Weber Department Leader, Regulatory Affairs TNW/RKR/KAR/hsc

Enclosure:

American Nuclear Insurers (ANI) Bond for Payment of Retrospective Premiums for Each of the Three Palo Verde Nuclear Generating Station's Units cc: S. A. Reynolds NRC Region IV Regional Administrator J. K. Rankin NRC NRR Project Manager [electronic and hard copy]

J. P. Reynoso NRC Senior Resident Inspector for PVNGS

ENCLOSURE:

American Nuclear Insurers (ANI) Bond for Payment of Retrospective Premiums for Each of the Three Palo Verde Nuclear Generating Station's Units

Enclosure Contents Unit 1: 2013 Annual Premium Endorsement (No. N-88)

Certificate of Insurance Declarations and Bond for Payment of Retroactive Premiums Endorsement to Certificate No. N-88 (Dept. of Water and Power of the City of Los Angeles)

Unit 2: 2013 Annual Premium Endorsement (No. N-107)

Certificate of Insurance Declarations and Bond for Payment of Retroactive Premiums Endorsement to Certificate No. N-107 (Dept. of Water and Power of the City of Los Angeles)

Unit 3:2013 Annual Premium Endorsement (No. N-114)

Certificate of Insurance Declarations and Bond for Payment of Retroactive Premiums Note: No additional Endorsement to Certificate needed for Unit 3 as it is added to the Master Policy (Pg. 2 of Certificate No. N-114, Declarations Item 1)

NUCLEAR ENERGY LIABILITY INSURANCE NUCLEAR ENERGY LIABILITY INSURANCE ASSOCIATION ANNUAL PREMIUM ENDORSEME CALENDAR YEAR 2013

1. ANNUAL PREMIUM: It is agreed that the Annual Premium due the companies for the period designated above is: $9,492.00 Effective Date of this Endorsement: January 1, 2013 To form a part of Certificate No. N -0088 (12:01 A.M. Standard Time)

Issued To: Arizona Public Service Company, et al Date of Issue: November 7,2012 For the subscribing companies By ý ,ce' President Endorsement No: 49 Countersigned by I ?rc~

08-31-11;04:13PM; # 1/ 9

- NUCLEAR ENERGY LIABILITY INSURANCE ASSOCIATION Certificate No. N-88

• .Forming. Part of Master Policy No. 1 CERTIFICATE OF INSURANCE DECLARATIONS AND BOND FOR PAYMENT OF RETROSPECTIVE PREMIUMS Certificate of Insurance This is to certify that the persons and organizations designated in Item 1 of the Declarations are named insureds under the Master Policy -

Nuclear Energy Liability Insurance (Secondary Financial Protection),herein called the "Master Policy",issued by Nuclear Energy Liability Insurance Association.

Such insurance as is provided by the M&ster Policy-applies, through this certificate, only:

(a) to the insureds identified in Items 1 and 2 of the Declarations, (b) for the certificate period stated in Item 6 of the Declarations, (c) to bodily injury or property damage (1) with respect to which the primary financial protection described in Item 4 of the Declarations would apply but for exhaustion of its limit of liability as described in Condition 6 of the Master Policy, and (2) which is caused during the certificate period stated in.Item

• 6 of .the Declarations by a nuclear incident arising out o*f

-or in connection with the nuclear reactor described in Item 3 of the Declarations, and NSFC-1 (1/l/83) Paqe I

08-31-1 1;04: 13PM; # 2/ 9 0

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

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

Declarations Item 1. Named insureds and addresses:

(a) Arizona Public Service Company-P.O. Box 21666, Phoenix, Arizona 85036 (b) Salt River Project Agricul:tural Improvement and Power District-P.O. Box 1980, Phoenix, Arizona- 85001 (c) El Paso Electric Company-Pz.O. Box 982,. El Paso, Texas -79946 (d) Southern California Edison Company-P.O. Box 800, Rose Mead, California 91770 (e) Public Service Company of New Mexico-Alvarado Square, Albuquerque, New Mexico 87158 (f) Southern California Public Power Authority-c/o Los Angeles Department' of Water & Power, Ill North Hope Street, Los Angeles, California 90012 Page 2 of Certificate No. N- 88

08-31-11;04:13PM; 3/ 9 Item 2. Additional insureds:

Any other perso.n or organization who would be insured under {the primary financial protection identified in Item 4 of the Dec.larations but for.exhaustion of the limit of liability of such primary financial protection.

Item 3. Description and location of nuclear reactor: Unit 1 of the.Palo Verde Nuclear Generating Station is located in Maricopa County, Arizona.

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

Nuclear Energy Liability Insurance Association's Policy NF- 266 $124,000,000 Mutual Atomic Energy Liability Underwriters' Policy MF- $ 36,000,000 (b) The following endorsements, attached to the primary financial protection policies listed in Item 4 (a) also apply to the insurance afforded by the Master Policy through this certificate as though they were attached hereto:

(1) Waiver of Defenses Endorsement (Extraordinary Nuclear Occurrence) and (2) Supplementary Endorsemenrt - Waiver of Defenses - Reactor Construction at the Facility, Page 3lof Certificate No. N-88

08 11;04:13PM;

• 4/ 9 (b) 3he following endorseilents, attached to the primary financial protection policies listed in Item 4 (a) also apply to the insurance afforded by the Master Pol-iy through this certificate as though they were attached hereto:

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

no exception Item 5. Limits of Liability: The amount of retrospective premium actually received by the companies plus the amount of the companies' con-tingent liability, if any, pursuant to Conditions 2, 3 and 4 of the Master Policy.

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

Item 7. Maximum retrospective premium (exclusive of allowance for premium taxes) payable pursuant to Condition 2 of the Master Policy with respect to each nuclear incident: $3,875,000.

Item 8. Portion of the annual premium payable for the companies' contingent liability described in Condition 4 of the Master Policy from the effective date hereof to the end of calendar year 1983  :" The pro rata portion of $4,650 for the period from the effective date of this certificate to the end of the calendar year during which such effective date occurs.

Page 4 of Certificate No. N-88

08-31-11;04:13PM;  ;# 5/

BOND FOR PAYMENT OF RETROSPECTIVE PREMIUMS Know All Men By These Presents, that the undersigned do hereby acknowledge that they are named insureds under the Master Policy described in the above

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

Page 5 of Certificate No. N-88

08-31-11;04:13PM;

• 6/ 9

7) 7)

The preceding Certificate of Insuraiice, Declarations and Bond form a part of the Master Policy. Cancellation or termination of the Master Policy or the Certificate of Insurance sh .ll not affect the named insured's obligations under tile policy or the Bond to pay the retrospective premiums and allowances for premium taxes, as provided in this Certificate and Condition 2 of the Master Policy.

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

Attest or Witness Named Insureds:

Arizona Public Service Company (Named Insured - Type or Print)

By:ý ý -SEAL)

Partner, Snel- & Wilmer ý-gna~ture of 0f'e//

T. G. Woods, Jr., Executive Vice President (Type or Print Name & Title of Officer)

Date:

Salt River Project Agricultural Improvement and Power District (Named- u d Type or Print)

By, (SEAL)

Partner, Snel Wilmer niýr(of Officer)

(Si1 R. D. Johnson, Manager, Generation Dept.

(Type or Print *ame & Title of Officer)

Date: ,Wzl

/,a El Paso Electric Company (Named Insured - Type or Print)

By (Signatur(:e (SEAL)

Partner, Snel.& Wilmer R. E. York. Senior Vice Prkident (Type or Print Name & Title of Officer)

Date: __ _ _ _

Pace 6 of Certificate No.N- 88

08-31-11 ;04: 13PM; # 7/ 9 D

Attest or Witness Named Insureds:

Southern California Edison Company (Named Insured - Type or Print)

By (SEAL)

Partner, Sne1 i Wi Imer (Signature of Officer)

Robert Dietch, Vice President (Type or Print Name & Title of Officer)

Date: -*/4 0  :--

Public Service Company of New Mexico (Named Insured - Type or-Print)

By. (SEAL)

Partner, Snel l/& Wilmer- (Signature of 66ff icer)

C. D. Bedford, Vice President (Type or Print Name & Title of Officeir)

Date: 47 C/003 Southern California Public Power Authority (Named Insured - Type or Print)

By.. 1%_ (SEAL)

(Sign ture of Officer)

(Type or Pr~t Name & fitle of Officer)

Date: . / S/6?

(Named Insured - Type or Print)

Bv (SEAL)

(Signature of Officer)

(Type or Print Name & Title of Officer)

Date:

Page 7 of Certificate No.N-88

08-31-11 ;04: 13PM; # 8/ 9 r

7)

IN WITNESS WHEREOF, the companies subscribing the Master Policy have caused the Certificate of Insurance and the Declarations to be signed.'

on their behalf by the President of Nuclear Energy Liability Insurance Association to be effective as of the time and date of the inception of the Certificate period, and countersigned belo.w by a duly authr;wized representative.

Attest or Witness For the Subscribing Companies of NUCLEAR ENERGY LIABILITY INSURANCE ASSOCIATION Y:

Countersigned by th iz el u tho-rized Representative)

Page 8 of Certificate No. N- 88

9Nuclear Energy Liabllity Insurance&

NUCLkAA ENERGY LIABILITY INSURANCE ASMOJCIATION EDORSE2W TO CERTIFICATE NO. N-88 FOR4M PAM OF MASTER POLICY NO. 1 NUCLEAR EERGY LIABIILTY INSURANCE (SECON~DARY' FINACIAiL PREL'TICK)

In consideration of its being added as a second named insured in Certificate No. N-88 by Endorsement thereto and issued concurrently herewith, The Department of Water and Power of the City of Los Angeles hereby executes the following bond:

BC1ND FCtR PAYMENI' CF RL'rayPMR7IVE PREZ4IUS Know All Men By These Presents, that the undersigned does hereby acknowledge that Arizona Public Service Company and the undersigned are named insureds under Master Policy No. 1 described in the Certificate of Insurance and Declarations of Certificate No. N-88, which was issued to and signed by Arizona Public Service Company on December 31, 1984 and as amended and that the undersigned is an additional named insured under such Master Policy and Certificate. With respect to such insurance as is afforded by Master Policy No. 1 for excess losses to which such policy applies and which occur on or after January 30, 1986, the undersigned does hereby covenant with and is held and is firmly bound to the subscribing members of Nuclear Energy Liability Insurance Association (hereinafter called the "companies") to pay to the companies all retrospective. premiums and allowances for premium taxes which shall become due and payable in accordance with the terms of Master Policy No.

1, as it may be changed from time to time, with interest on such premiums and allowances for taxes to be computed at the rate provided in Master Policy No. 1 from the date payment thereof is specified to be due the companies in a written notice to the first named insured, as provided in Condition 2 of Master Policy No. 1 until paid.

And it is hereby expressly agreed that copies of written notices of retrospective premiums and allowances for premium taxes due and payable or other evidence of such amounts due and payable sworn to by a duly authorized representative of the oampanies shall be prima facie evidence of the fact and extent of the liability of the named insureds for such amounts.

And it is further expressly agreed that the named insureds will indemnify the companies against any and all liability, losses and expenses of whatsoever kind or nature (including but not limited to interest, court costs and counsel fees) which the companies may sustain or incur (1) by reason of the failure of the named insureds to comply

0 9 with the covenants and provisions of this Bond or (2) in enforcing any of the covenants or provisions of this Bond, or any provisions of Master Policy No. 1 relating to such covenants or provisions.

For the purpose of recording this agreement a photocopy acknowledged before a Notary Public to be a true copy hereof shall be regarded as an original.

THE ABOVE BON*D FORMS A PART OF MASTER POLICY NO. 1. CANCELLATICN OR TEFfMINATI0N OF MASTER POLICY NO. 1 OR CERTIFICATE NO. N-88 SHALL NOT AFFECT THE OBLIGATIONS OF THE NAMED INSUREDS UNDER MASTER POLICY NO. 1 OF THE BONDS TO PAY THE RETROSPECTIVE PREMIUMS AND A11DWANCE FOR PRPIMUM TAXES AS PROVIDED IN CERTIFICATE NO. N-88 AND CONDITION 2 OF MASTER POLICY NO. 1.

IN WITHNESS %HEREFXF, the undersigned named insured has caused this Bond for Payment of Retrospective Premiums, to be signed and sealed by a duly authorized officer, to be effective from and after the date stated below, eastern standard time.

Attest or Witness Named Insured:

The Department of Water and Power of the City of Los Angeles (Named Insured - Type or Print)

~e4~c\S~' CL~c* (SEAL)

(Signature 6f Officer) l'AAN E. NICHOLS - ASSISTANT GENERAL MANA? - POWER (Type or Print Name. & Title of Officer)

Date:_ 9"MLt 0 I U

Effective Date of Certificate No.

this Endorsement January 30. 1986 To form a part of PJLN: ]. N-R8 12:01 A.M. Standard Time Issued to Ari zona Public Service Company, et al.

Date of Issue June 24, 1986 Endorsement No 5

NUCLEAR ENERGY LIABILITY INSURANCE NUCLEAR ENERGY LIABILITY INSURANCE ASSOCIATION ANNUAL PREMUM ENDORSEMENT CALENDAR YEAR 2013

1. ANNUAL PREMIUM: It is agreed that the Annual Premium due the companies for the period designated above is: $9,492.00 Effective Date of this Endorsement: January 1, 2013 To form a part of Certificate No. N -0107 (12:01 A.M. Standard Time)

Issued To: Arizona Public Service Company, et al Date of Issue: November 7, 2012 For the subscribing companies By.- ),I 0 - President Endorsement No: 50 Countersigned by '_ 1 2 ,

NUCLEAR ENERGY LIABILITY INSURANCE ASSOCIATION

[-J'EN `P ORO".!- Gd.. Certificate No. N- 107

£-3 SUBMITTIFC COI PANY COPY Forming Part of Master AEUPolicy MAELU COPYPA I[] No. 1 CERTIFICATE OF INSURANCE DECLARATIONS AND BOND FOR PAYMENT OF RETROSPECTIVE PREMIUMS Certificate of Insurance This is to certify that the persons and organizations designated in Item 1 of the Declarations are named insureds under the Master Policy -

Nuclear Energy Liability Insurance (Secondary Financial Protection),herein called the "Master Policy", issued by Nuclear Energy Liability Insurance Association.

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

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

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

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

Declarations Item 1. Named insureds and addresses:

(a) Arizona Public Service Company-P.O. Box 21666, Phoenix, Arizona 85036 (b) Salt River Project Agricultural Improvement and Power District-P.O. Box 1980, Phoenix, Arizona 85001 (c) El Paso Electric Company-P.O. Box 982, El Paso, Texas 79946 (d) Southern California Edison Company-P.O. Box 800, Rose Mead, California 91770 (e) Public Service Company of New Mexico-Alvardo Square, Alburquerque, New Mexico 87158 (f) Southern California Public Power Authority-c/o Los Angeles Department of Water & Power, Ill North Hope Street, Los Angeles, California 90012 Page 2 of Certificate No. N- 107

Item 2.. Additional insureds:

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

Item 3. Description and location of nuclear reactor: Unit 2 of the Palo Verde Nuclear Generating Station is located in Maricopa County, Arizona.

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

Nuclear Energy Liability Insurance Association's Policy NF- 266 $124,000,000 Mutual Atomic Energy Liability Underwriters' Policy MF- 116 $ 36,000,000 (b) The following endorsements, attached to the primary financial protection policies listed in Item 4 (a) also apply to the insurance afforded by the Master Policy through this certificate as though they were attached hereto:

(1) Waiver of Defenses Endorsement (Extraordinary Nuclear Occurrence) and (2) Supplementary Endorsement - Waiver of Defenses - Reactor Construction at the Facility, Page 3 of Certificate No. N- 10Z

(b) Theollowing endorsements, attache to the primary financial _p'otection policies listed in Item 4 (a) also apply to tnh insurance afforded by the Master Policy through this certificate as though they were attached hereto:

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

Unit I of the Palo Verde Nuclear Generating Station.

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

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

Item 7. Maximum retrospective premium (exclusive of allowance for premium taxes) payable pursuant to Condition 2 of the Master Policy with respect to each nuclear incident: $3,875,000.

Item 8. Portion of the annual premium payable for the companies' contingent liability described in Condition 4 of the Master Policy from the effective date hereof to the end of calendar year 1985 : The pro rata portion of $4,650 for the period from the effective date of this certificate to the end of the calendar year during which such effective date occurs.

Page 4 of Certificate No. N- 107

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

Paqe 5 of Certificate No. 107

The preceding Certificate of Insurance, Declarations and Bond form a part of the Master Policy. Cancellation or termination of the Master Policy or the Certificate of Insurance shall not affect the named insured's obligations under the policy or the Bond to pay the retrospective premiums and allowances for premium taxes, as provided in this Certificate and Condition 2 of the Master Policy.

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

Attest or Witness Named Insureds:

Arizona Public Service Company (Named Insured - ye int)

Associate ecretary (Signature of Officer)

Edwin E. Van Brunt, Jr.

Executive Vice President - ANPP (Type or Print Name & Title of Officer)

Date: 11-30-85 Salt River Project Agricultural Improvement and Power District ATTEST BJ)**'{ me /, eof rPit (SEAL)

-. r JOnature of Officer)

(Type or Print Name & Title of Officer)

Date:

El Paso Electric Company (Named Insured - Type or Print)

By (SEAL)

(Sion~~( Officer)

Senior Vice President (Type or Print Name & Title of Officer)

Date: 11-15-85 I f- , .* r* . -. .1 1 A

0 Attest or Witness Named Insureds:

Southern California Edison Company

~&

(Named Insured - Type or Print)

By a% g (SEAL) 7- (Signature of bffic'r)'-

David J. Fogartv. Executive Vice Pres:iden:

(Type or Print Name & Title of Officer)

Date: 11-8-85 Public Service Company of New Mexico (Na ed Insured - Type or Print)

'Officer)

Assistant Secretary Sinature of L. Wilkins, Senior Vice President (Type or Print Name & Title of Officer)

Date: 11-1-85

//Southern California Public Power Authorit)

(Named Insured - Type or Print)

By (SEAL)

Assistant Secretary (Signature of Off4 )

Fre Kray, President (Type or Print Name & Title of Officer)

Date: 11-20-85 A*

T i*"

' "l

.f

.l

( TNamed Z/niured --/rPe or Print)

I**.

-~. 7. .. (SEAL)

(Ygnature of Officer)

(Type or Print Name & Title of Officer)

Date:

D,1rjM ý1" Nl_ In-7

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

Attest or Witness For the Subscribing Companies of NUCLEAR ENERGY LIABILITY INSURANCE ASSOCIATION MP BY:

BurtlC. Proom, President Countersigned by Authorind resentati46 Page 8 of Certificate No. N- 107

.. La Nulear Enegy Liability InsurancedI NUCLM ENERGY LIABILITY INSURANCE A %ATION EDOPSE2ET TO CERTIFICATE NO. N-107 FOR4ING PART CF MASTER POLICY NO. 1 NUCLEAR ENERGY LIABIILTY INSURANCE (SHX1KDARY FINANCIAL PROTUCTIGI)

In consideration of its being added as a second named insured in Certificate No. N-107 byo Endorsement thereto and issued concurrently herewith, The Department of Water and Power of the City of Los Angeles hereby executes the following bond:

BCN) FOR PAYMENT OF R7')PLrIEPREMIUMS Know All Man By These Presents, that the undersigned does hereby acknowledge that Arizona Public Service Ccmpany and the undersigned are named insureds under Master Policy No. 1 described in the Certificate of Insurance and Declarations of Certificate No. N-107, which was issued to and signed by Arizona Public Service Company on December 9, 1985 and as amended and that the undersigned is an additional named insured under such Master Policy and Certificate. With respect to such insurance as is afforded by Master Policy No. 1 for excess losses to which such policy applies and which occur on or after January 30, 1986, .the undersigned does hereby covenant with and is held and is firmly bound to the subscribing members of Nuclear Energy Liability Insurance Association (hereinafter called the "cumpanies") to pay to the cumpanies all retrospective premiums and allowances for premium taxes which shall become due and payable in accordance with the terms of Master Policy No.

1, as it may be changed fran time to time, with interest on such premiums and allowances for taxes to be computed at the rate provided in Master Policy No. 1 frum the date payment thereof is specified to be due the companies in a written notice to the first named insured, as provided in Condition 2 of Master Policy No. 1 until paid.

And it is hereby expressly agreed that copies of written notices of retrospective premiums and allowances for premium taxes due and payable or other evidence of such amounts due and payable sworn to by a duly authorized representative of the companies shall be prima facie evidence of the fact and extent of the liability of the named insureds for such amounts.

And it is further expressly agreed that the named insureds will indemnify the cumpanies against any and all liability, losses and expenses of whatsoever kind or nature (including but not limited to interest, court costs and counsel fees) which the companies may sustain or incur (1) by reason of the failure of the named insureds to camply

- 0o with the covenants and provisions of this Bond or (2) in enforcing any of the covenants or provisions of this Bond, or any provisions of Master Policy No. I relating to such covenants or provisions.

For the purpose of recording this agreement a photocopy acknowledged before a Notary Public to be a true copy hereof shall be regarded as an original.

THE ABOVE BOND FOR4S A PART OF MASTER POLICY NO. 1. CAbNELLATION OR TERMINATION OF MASTER POLICY NO. 1 OR CERIFICATE NO. N-107 SHALL NOT AFFECT THE OBLIGATIONS OF THE NAME INSUREDS UNDER MASTER POLICY NO. 1 OF THE BONDS TO PAY THE RETROSPECTIVE PREMIUM AND A LOKANCES FOR PREMIUM TAXES AS PROVIDED IN CERTIFICATE NO. N-107 AND CCNDITION 2 OF MASTER POLICY NO. 1.

IN WITHNESS WHEREF, the undersigned named insured has caused this Bond for Payment of Retrospective Premiums, to be signed and sealed by a duly authorized officer, to be effective from and after the date stated below, eastern standard time.

Attest or Witness Named Insured:

The Department of Water and Power of the City of Los Angeles (Named Insured - Type or Print)

C-utk(-, ____________( EAL)

'(Signature of Officer)

NM" E. NICHLS - ASSISTAN GENERAL MANAGER - IM).ER (Type or Print Name & Title of Officer)

Date: 9ý!Tw 0qq U

Effective Date of Certificate No.

this Endorsement January 30, 1986 ro form a part of ) Qgb N-107 12:01 A.M. Standard Time Issued to Arizona Public Service Company, et al.

Date of Issue June 24, 1986 Endorsement No 4

NUCLEAR ENERGY LIABILITY INSURANCE NUCLEAR ENERGY LIABILITY INSURANCE ASSOCIATION ANNUAL. PREMIUM ENDORSEMENT CALENDAR YEAR 2013

1. ANNUAL PREMIUM: It is agreed that the Annual Premium due the companies for the period designated above is: $9,492.04)

Effective Date of this Endorsement: January 1, 2013 To form a part of Certificate No. N -0114 (12:01 A.M. Standard Time)

Issued To: Arizona Public Service Company, et al Date of Issue: November 7, 2012 For the subscribing companies By President Endorsement No: 45 Countersigned by w j

NUCLEAR ENERGY LIABILITY INSURANCE ASSOCIATION Certificate No. N- 114 Forming Part of Master Policy No. 1 CERTIFICATE OF INSURANCE DECLARATIONS AND BOND FOR PAYMENT OF RETROSPECTIVE PREMIUMS Certificate of Insurance This is to certify that the persons and organizations designated in Item 1 of the Declarations are named insureds under the Master Policy -

Nuclear Energy Liability Insurance (Secondary Financial Protection),herein called the "Master Policy",issued by Nuclear Energy Liability Insurance Association.

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

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

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

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

Declarations Item 1. Named insureds and addresses:

(a) Arizona Public Service Company-P.O. Box 21666, Phoenix, Arizona 85036 (b) Salt River Project Agricultural Improvement and Power District -

P.O. Box 1980, Phoenix, Arizona 85001 (c) El Paso Electric Company-P.O. Box 982, El Paso, Texas 79946 (d) Southern California Edison Company-P.O. Box 800, Rose Mead, California 91770 (e) Public Service Company of New Mexico-Alvardo Square, Alburquerque,

- New Mexico 87158 (f) Southern California Public Power Authority Association-111 North Hope Street, Los Angeles, California 90012 (g) The Department of Water and Power of The City of Los Angeles -

111 North Hope Street, Los Angeles, California 90012 Page 2 of Certificate No. fl- 114

Item 2. Additional insureds:

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

Item 3. Description and location of nuclear reactor:

Unit 3 of the Palo Verde Nuclear Generating Station located in Maricopa County, Arizona.

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

Nuclear Energy Liability Insurance Association's Policy NF- 266 $124,000,000 Mutual Atomic Energy Liability Underwriters' Policy MF- 116 $ 36,000,000 (b) The following endorsements, attached to the primary financial protection policies listed in Item 4 (a) also apply to the insurance afforded by the Master Policy through this certificate as though they were attached hereto:

(1) Waiver of Defenses Endorsement (Extraordinary Nuclear Occurrence) and (2) Supplementary Endorsement - Waiver of Defenses - Reactor Construction at the Facility, Page 3 of Certificate No. N- 114

6 0 (c) The limits of liability provided under the primary financial protection specified in Item 4 (a) above are not shared with any other reactor except as follows:

Unit 1 and 2 of the Palo Verde Nuclear Generating Station.

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

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

Item 7. Maximum retrospective premium (exclusive of allowance for premium taxes) payable pursuant to Condition 2 of the Master Policy with respect to each nuclear incident: $3,875,000.

Item 8. Portion of the annual premium payable for the companies' contingent liability described in Condition 4 of the Master Policy from the effective date hereof to the end of calendar year 1987 : The pro rata portion of $5,812.50 for the period from-the effective date of this certificate to the end of the calendar year during which such effective date occurs.

• OND FOR PAYMENT OF RETROSPEC4 PREMIUMS Know All Men By These Presents, that the undersigned do hereby acknowledge that they are named insureds under the Master Policy described in the above Certificate of Insurance and Declarations. The named insureds do hereby covenant with and are held and are firmly bound to the members of Nuclear Energy Liability Insurance Association subscribing the Master Policy (hereinafter called the "companies") to pay to the companies all retrospective premiums and allowances for premium taxes which shall become due and payable in accordance with the Master Policy, as it may be changed from time to time, with interest on such premiums and allowances for taxes to be computed at the rate provided in the Master Policy from the date pay-ment thereof is specified to be due the companies in written notice to the first named insured as provided in Condition 2 of the Master Policy until paid; And It is hereby expressly agreed that copies of written notices of retro-spective premiums and allowances for premium taxes due and payable or other evidence of such amounts due and payable sworn to by a duly authorized representative of the companies shall be prima facie evidence of the fact and extent of the liability of the named insureds for such amounts; And it is further expressly agreed that the named insureds will indemnify the companies against any and all liability, losses and expenses of whatsoever kind or nature (including but not limited to interest, court costs, and counsel fees) which the companies may sustain or incur (1) by reason of the failure of the named insureds to comply with the covenants and provisions of this Bond and (2) in enforcing any of the covenants or provisions of this Bond, or any provisions of the Master Policy relating to such covenants or provisions; For the purpose of recording this agreement, a photocopy acknowledged before a Notary Public to be a true copy hereof shall be regarded as an original.

Page 5 of Certificate No. 114

The preceding Certificate of Insurance, Declarations and Bond form a part of the Master Policy. Cancellation or termination of the Master Policy or the Certificate of Insurance shall not affect the named insured's obligations under the policy or the Bond to pay the retrospective premiums and allowances for premium taxes, as provided in this Certificate and Condition 2 of the Master Policy.

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

Attest or Witness Named Insureds:

Arizona Public Service Company (Named Insured rint)

By~&A4Ai 2ý 0" , r ---( )

(Signature of Officer)

Edwin E. Van Brunt, Jr.

Executive Vice President - ANPP (Type olr Print Name & Title of Officer)

Date: February 16, 1987 Salt River Project Agricultural Improvement and Power District

,(ed Inserred - TyO~or Print)

By;Z#* e yI,*4ý_(SEAL)

SECIIETAAY / naure of Officer) ..

(Type or Print Name & Title of Officer)

Date:- V-*_%oA*IZ.,/ t197 El Paso Electric Company (Named- nsure- Ty1e or Pint)

~jI4"%e BY 14 (SEAL)

( ature of Officer)

(Type or Print Name & Title of Officer)

Date: Alnf.6 5`/117 PaoeL6of Certificate No.NzL14

0 Attest or Witness Named Insureds:

Southern California Edison Company (Named Insured - Type or Print)

"SEAL)

(Signature of qfficekj DWN6IDIR MOZ Secreta%7 David J. Fogarty Executive Vice President (Type or Print Name & Title of Officer)

Date: March 12, 1987 Public Service Company of New Mexico (Named Insured - Type or Print)

By_ ( S E A L-(EA)

Aj$~St3flt Sacrotary (Signature of Okiler)

Vice President & Corporate Controller (Type or Print Name & Title of Officer)

Date: March 23, 1987 Southern California Public Power Authority Association (Named Insured - Type or Print)

By, Z"_(SEAL)

(Signature of Officer)

(Type or Print Name & Title of Officer)

Date: 4 The Department of Water and Power of The City of Los Anael-es (Named Insured -,,Type or Print)

By- J(SEAL)

Asst. Chief Engineer-Power (Signature of Officer)

Norman E. Nichols (Type or Print Name & Title of Officer)

Date: March 20, 1987 Page 7 of Certificate No.N-114

9 6 IN WITNESS WHEREOF, the companies subscribing the Master Policy have caused the Certificate of Insurance and the Declarations to be signed on their behalf by the President of Nuclear Energy Liability Insurance Association to be effective as of the time and date of the inception of the Certificate period, and countersigned below by a duly authorized representative.

Attest or Witness For the Subscribing Companies of NUCLEAR ENERGY LIABILITY INSURANCE ASSOCIATION

\ BY:

Burt C. Proom, President Countersigned by Page _ of Certificate No. N- 114