ML14251A225

Licensee Guarantee of Payment of Deferred Premium 2014 Annual 10 CFR 140.21 Filing

ML14251A225
Person / Time
Site:	Palo Verde
Issue date:	08/29/2014
From:	Weber T Arizona Public Service Co
To:	Document Control Desk, Office of Nuclear Reactor Regulation
References
102-06937-TNW/TMJ
Download: ML14251A225 (35)

Text

%- *I 10 CFR 140.21 0aps Palo Verde Nuclear Generating Station P0 Box 52034 102-06937-TNW/TMJ Phoenix, Arizona 85072-2034 August 29, 2014 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 2014 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 2014 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 29, 2014.

Secondary Endorsement Financial Licensee Plant Protecion Number Protection Pup s and Certificate # Purpose

" Arizona Public Service Company Palo Verde N - 0088 2014 Annual

• Salt River Project Agricultural Nuclear Premium Improvement and Power District Generating Endorsement #51

• Public Service Company of New Station Unit 1 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

• Arizona Public Service Company Palo Verde N - 0107 2014 Annual Nuclear Premium Eremet#

" Salt River Project Agricultural Genr Improvement and Power District Generating Endorsement #52 Station Unit 2

• Public Service Company of New 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 A member of the STARS (Strategic Teaming and Resource Sharing) Alliance Callaway

• Comanche Peak

• Diablo Canyon

• Palo Verde

• Wolf Creek ODD t

• OýK

102-06937 - TNW/TMJ ATTN: Document Control Desk U. S. Nuclear Regulatory Commission Licensee Guarantee of Payment of Deferred Premium 2014 Annual 10 CFR 140.21 Filing Page 2 Secondary Endorsement Financial Licensee Plant Protecion Protection Pup s and Number Certificate # Purpose

• Arizona Public Service Company Palo Verde N-0114 2014 Annual

" Salt River Project Agricultural Nuclear Premium Improvement and Power District Generating Endorsement #47

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

" El Paso Electric Company Payment of

" Southern California Public Power Retrospective Authority Premiums

" 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 me at (623)393-5764.

Sincerely, Thomas N. Weber Department Leader, Regulatory Affairs TNW/TMJ/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: M. L. Dapas NRC Region IV Regional Administrator B. K. Singal NRC NRR Project Manager for PVNGS M. M. Watford NRC NRR Project Manager M. A. Brown NRC Senior Resident Inspector for PVNGS D. R Reinert NRC Resident Inspector for PVNGS D. You NRC Resident Inspector for PVNGS

T, 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 1:2014 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 2:2014 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 3:2014 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 ENDORSEntI CALENDAR YEAR 2014

1. ANNUAL PREMIUM: It is agreed that the Annual Premium due the companies for the period designated above is: $19,175.00 Effective Date of this Endorsement: January 1,2014 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 20, 2013 For the subscribing companies By President Endorsement No: 51 Countersigned by e f -

4t~' I 1~..

NUCLEAR ENERGY LIABILITY INSURANCE ASSOCIATION THIS ISTO CERTIFY THAT THIS IS A TRUE COPY OF THE ORIGINAL CERTIFICATE, BEARING THE NUMBER DESIGNATED HEREON, FOR INSURANCE COVERAGE UNDER THE MASTER %LICY - NUCLEAR ENERGY LIABILIT INSURANCE (SECONDARY FINANC#L PROTECTION). NO Certificate No. N- 88 INSURAN AEQ-Forming Part of Master JOHN L. TTROCCHI VICE PRESOENT-LIABILITY UNDERWRITING Pol icy No. 1 AMERICAN NUCLEAR INSURERS 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 (0.) 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 Nm*rr- ti /1 /Pii PAOn 1

(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 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-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

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 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 Endorsement - Waiver of Defenses - Reactor Construction at the Facility, Page 3 of Certificate No. N-88

(b) Ine foliowing endorsements, attached to the Pri"Ir_ ry-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) aiver 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.

Pane 4 of Certificate No. N-88

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

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 shall not affect the named insured's obligations under the policy or the l1ond 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 - Type or Print)

By (SEAL)

Partner, Snell & Wilmer *gnature-of Off~i ei)

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

Date:

Salt River Project Agricultural Improvement and Power District (Named I*Isured - Type or Print)

By -(SEAL)

Partner, Snel Wilmer (Si'gnat'u3r6of Officer)

R. D. Johnson, Manager, Generation Dept.

(Type or Print Name & Title of Officer)

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

By _. (SEAL)

Partner, Snell/& Wilmer (SignatureC)* icer)

R. E. York. Senior Mice President (Type or Print Name & Title of Officer)

Date:- .A 3 _/-

Pacie 6 of Cert ificato Nrn.IJ- 88

i Attest or Witness Named Insureds:

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

By . .- 4[ (SEAL)

Partner, Snell d Wilmer (Signature of Officer)

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

Date: 9*-/ 5/*

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

By (L . 2 L** .. (SEAL)

Partner, SnelVd& Wilmer (Signature of,.'fficer)

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

Date: ý/7, c/s Southern California Public Power Authority (Named Insured - Type or Print)

-ZL~.x By.. gQ C~.-~ (SEAL)

(Sign ture of Officer)

(Type or Pr4t Name & jitle of Officer)

Date: G( 1 1:rC (Named Insured - Type or Print)

By_ (SEAL)

(Signature of Officer)

(Type or Print Name & Title of Officer)

Date:

Page 7_of Certificate No.N-88

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 arid date of the inception of the Certificate period, and countersigned below by a duly authlo,.ized representative.

Attest or Witness For the Subscribing Companies of NUCLEAR ENERGY LIABILITY INSURANCE ASSOCIATION Burt C. Proom. President Countersigned by _ .

Sýuthorized Representative 7 Page 8 of Certificate No. N- 88

Nuclear Energy Liability Insurnce NUCLE"i,, ENERGY LIABILITY INSURANCE ASL AIATION ENDOSEMET TO CERTIFICATE NO. N-88 FOPRMG PART F MASTER POLICY NO. 1 NUCLEAR ENGY LIABIILTY INSURANCE (SECONDARY FINANCIAL PROTEIaON)

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:

BOND FOR PAYMENT CF RETRIISP*TIVE PREMIUMS 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 Campany 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 became 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 ccuputed at the rate provided in Master Policy No. 1 from the date payment thereof is specified to be due the cumpanies 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 ocmpanies 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 ccupanies 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 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 BCND FORMS A PART CF MASTER POLICY NO. 1. CAN U4TION OR TERMINATION 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 ALLC0ANCES FOR PREMIGUM TAXES AS PROVIDED IN CERTIFICATE NO. N-88 AND CONDITION 2 OF MASTER POLICY NO. 1.

IN WITHNESS WHEREOF, 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 frao 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)

(SEAL)

(Signature of Officer)

NMV1AN E. NICHOLS - ASSISTANT GERAL MANAGER - POWER (Type or Print Name & Title of Officer)

Date: 0 Effective Date of Certificate No.

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

Date of Issue June 24, 1986 For the su cribing co panies Endorsement No 5  !

Countersig d 'by - )Y!/71/7 n

NUCLEAR ENERGY LIABILITY INSURANCE NUCLEAR ENERGY LIABILITY INSURANCE ASSOCIATION ANNUAL PREUM ENDORSENT CALENDAR YEAR 2014

1. ANNUAL PREMIUM: It is agreed that the Annual Premium due the companies for the period designated above is: $19,175.00 Effective Date of this Endorsement: January 1, 2014 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 20, 2013 For the subscribing companies By President Endorsement No: 52 Countersigned by______ __________

NUCLEAR ENERGY LIABILITY INSURANCE ASSOCIATION THIS Is TO CERTIFY THAT '1W: 1" iAA R'f,' o*F T.r I3INAL CEWI.FICATE, BEAr, NG THE .,.. II:

S4(D['* P4-()N, FOR NW.'.;I.* t OOVEF(

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Certificate No. N- 107 INoPBAi:c.: .....

• Forming Part of Master JOHN I..

Policy No. 1 Vif;E PRE,j*J1T- LIAG";1 'Y ANDE:RWRITING AMERICAN NUCL'EAH !'URERS 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 "Mastei 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 (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 nuc'ear 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 inJiuy 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.

Decl arations 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-do Los Angeles Department of Water & Power, Ill North Hope Street, Los Angeles, California 90012 Pa.gIe 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- 107

(b) The following endorsements, attached to the primary financial protection policies listed in Item 4 (a) also apply to thp 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 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 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 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.

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 Com~pany (Named Insured - Ty epr 5 int),

By .

Associate& ecr'etaory (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 me ed* - or Print)

ATTEST Bj) Yr

• 4 / , * * *j . L _4 (SEAL )

(/lrnature of Officer)

JOHN R. LASSEN PRE*SM (Type or Print Name & Title of Officer) 4AG Ams Date:

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

By; '(SEAL)

(Sign 'Officer)

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

Date: 11-15-85 Paqe-kEof Ce~rtificate No.Ni07

Attest or Witness Named Insureds:

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

- -.ý,L a,Q,,., &,- By CD0" --.

(Signature of Officyr)  %

(SEAL)

David J. Fogartv. Executive Vice Pres:ident (Type or Print Name & Title of Officer)

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

(Si nature of Officer)

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

Date: 11-1-85 YSouthern California Public Power Authority (Named Insured - Type or Print)

By - f (SEAL)

Assistant Secretary (Signature of Off )

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

Date: 11-20-85 (Type or Print Name & Title of Officer)

Date:

Page .7of Certificate No.N- 107

IN WITNESS WHEREOF, the companies subscribing the Master Policy ýave 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

ýJA BY:

Burt/C. Proom, President Countersigned by Z' -- 1111014 .,,1 AAuthorýd 7resenta, i',

Page .8 of Certificate No. N- 107

Nuclear Energy Liability Insurance NUCLEiet ENERGY LIABILITY INSURANCE ASIL -IATION ENDORSEMENT TO CERTIFICATE NO. N-107 FORMING PART CF MASTER POLICY NO. 1 NUCLEAR EERGY LIABIILTY INSURANCE (SECONDARY FINANCIAL PROTECION)

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

BCND FOR PAYMENT O RETROSPECTIVE PPREMIUMS 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-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 "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 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 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 BCND FORMS A PART OF MASTER POLICY NO. 1. CANCLATION OR TERMINATION OF MASTER POLICY NO. 1 OR CERTIFICA 1 TE NO. N-107 SHALL NOT AFFECT THE OBLIGATIONS OF THE NAMED INSUREDS UNDER MASTER POLICY NO. 1 OF THE BONDS TO PAY THE RETROSPECTIVE PRB7EIUMS AND AIOANCES FOR PREMIUM TAXES AS PROVIDED IN CERTIFICATE NO. N-107 AND CONDITION 2 OF MASTER POLICY NO. 1.

IN WITHNESS WHEREOF, 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)

.eiQWý13. ýý - By (Signature of Officer)

(SEAL)

N[RMAN E. NICHDLS - ASSISTANT GENERAL NKLNAGER - POWER (Type or Print Name & Title of Officer)

Date: Q P'? t Effective Date of Certificate No.

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

Date of Issue June 24, 1986 t*ndorsernent No 4

NUCLEAR ENERGY LIABILITY INSURANCE NUCLEAR ENERGY LIABILITY INSURANCE ASSOCIATION ANNUAL PREUM ENDQRSEMENT CALENDAR YEAR 2014

1. ANNUAL PREMIUM: It is agreed that the Annual Premium due the companies for the period designated above is: $19,175.00 Effective Date of this Endorsement: January 1, 2014 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 22, 2013 For the subscribing companies By 0- President Endorsement No: 47C Countersigned by Ato I 7~~

1e~'eZ~

NUCLEAR ENERGY LIABILITY INSURANCE ASSOCIATION THIS ISTO CERTIFY THAT THIS ISATRUE COPY OF THE ORIGINAL CERTIFICATE, BEARING THE NUMBER DESIGNATED HEREON. F01 INSURANCE COVERAGE UNDER THE MASTER POLICV -NUCLEAR ENERGY Certificate No. N- 114 LIABILITY INSURANCE (SECQNDARY FINANCIAL PROTECTION). N INSURANCE ISAFFORDED THIS COPY. Forming Part of Master JOHN~ L. OUATrROCCHI: Fomn Pato.Mse VICE PRESIENT-LIABILITY kU EFIWRTING Policy'No. I AMERICAN NUCLEAR INSURERS 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 I and 2 of the Declarat*-s, (b) for the certificate period stated in Item 6 of the Declarations, (0) 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 I'lcrf-_ -1 r -V r-I fc'-ý ý

(3) which is scovered and for which written aim 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 Agricultural Improvement and Power District -

P.O. Box 1980, Phoenix, Arizona 85001 (C) El Paso Electric Company-P.O. Box 982, El Paso, Texas 79960 (d) Southern California Edison Company-P.O. Box 800, Rosemead, California 91770 (e) Public Service Company of New Mexico-Alvarado Square, Alburquerque, New Mexico 87158 (f) Southern California Public Power Authority Association-i11 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. N- 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

(c) The limits of liability provided under the krimary 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 RETROSPECTI_. 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 (l)-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)

• /

(Signature of Officer)

Edwin E. Van Brunt, Jr.

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

Date: February 16, 1987 Salt River Project Agricultural Improvement L and Power District e Inred-T '*d Print) eor SkaKLf~ )gnature of Officer)

JOHN R.LASUN p~

(Type or Print Name & Title of Officer)

Date: %_ot k 2-(f t197

_El Paso Electric Company (Named Insurg., - ' pe or ,ýýint)

BY / (SEAL)

I T -S -e e-ý-e lq i ature of Officer)

Zo0C10h S. W.4 s,',k hc.s.e Pr~pSde 4-(Type or Print Name & Title of Officer)

Date: /4An m*19/9R7 PaqeLof Certificate No.N 4

Attest or Witness Named Insureds:

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

B (SEAL)

MORN;1 SecretaRy (Signature of fficek, 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 (SEAL) p,-sietar't Sec'relty (Signature of O li~er)

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)

(SEAL)

(Signature of Officer)

(Type or Print Name & Title of Officer)

Date: 3/71 The Department of Water and Power of The City of Los Angeles (Named Insured - Type or Print)

Y (.SEAL)

Asst. Chief Engineer-Power (Signature of Officer)

Norman E. Nichols A

As--,i qa tn P I ....

(Type or Print Name & Title of Officer)

Date: March 20, 1987 4

Page 7 of Certificate No.N-11

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: .":

I k-dG'Lý- t Zýrel-

, Z 2wotpw-Burt C. Proom, President Countersigned by ' -

uthorize Re sentati e Page 8 of Certificate No. N- 114