L-15-195, Application for Order Consenting to Transfer of Licenses and Approving Conforming License Amendments
| ML15181A366 | |
| Person / Time | |
|---|---|
| Site: | Perry  |
| Issue date: | 06/30/2015 |
| From: | Harden P FirstEnergy Nuclear Operating Co |
| To: | Document Control Desk, Office of Nuclear Reactor Regulation |
| Shared Package | |
| ML15181A365 | List: |
| References | |
| L-15-195 | |
| Download: ML15181A366 (57) | |
Text
{{#Wiki_filter:CONFIDENTIAL COMMERCIAL MATERIAL TO BEWITHHELD FROMPUBLICDISCLOSURE PURSUANT TO 10CFR2.390AND10CFR9.17 FENOC Fir'.Erwgt **l.-.+.,*rgffi 76 South Main Sfreef Akron. Ohio 44308 Paul A. Harden Senior Vice Presidentand Chief Operating Offrcer June30,2015 L-15-195 10cFR 50.80 ATTN: DocumentControlDesk U. S. NuclearRegulatory Commission Washington, DC 20555-0001
SUBJECT:
PerryNuclearPowerPlant DocketNo.50-440,LicenseNo.NPF-58 Application for OrderConsentino to Transferof LicensesandApprovinq Conforming LicenseAmendments Pursuantto Section184of the AtomicEnergyAct of 1954,as amended(AEA),and 10 CFR50.80,FirstEnergy NuclearOperating Company(FENOC) actingas agentfor andon behalfof FirstEnergy NuclearGeneration, LLC(FENGen)andthe OhioEdison Company(OE),herebysubmitsthe enclosedapplication to the NuclearRegulatory Commission (NRC)requesting consentto the transferof the leasedinterestsin Perry NuclearPowerPlant(PNPP)andapprovalof an administrative amendment to conform the licenseto reflectthe proposedtransfer.FENOCrequestsan orderconsenting to the transferfromOE to FENGenof OE's 12.58 percent leasedinterest in PNPP. Thisapplication alsorequestsconforming administrative amendments to the PNPP licenseto: 1 . Reflectthe proposedtransferof leasedinterestsin PNPPfromOE to FENGen; 2 . DeleteOE fromthe PNPPlicense;and 3 . AuthorizeFENGento possessthe respectiveleasedinterestsin PNPPbeing transferredby OE. Enclosure C to this lettercontainsconfidential commercial material. Withholdfrompublicdisclosure under10 CFR2.390and 10CFR9.17. Uponremovalof Enclosure C, this letteris uncontrolled.
CONFIDENTIAL COMMERCIAL MATERIAL TO BEWITHHELD FROMPUBLIC DISCLOSURE PURSUANT TO 10CFR2.390AND1OCFR9.17 PerryNuclearPowerPlant L-15-195 Page2 fn accordance with NRCrequirements, fiveyearpro formafinancialprojections are provided.Thisfinancialinformation is confidential commercial information, and FENOC requeststhatExhibitG be withheldfrompublicdisclosure pursuantto 10 CFR2.390 and 10 CFR9.17(a)(4).A redactedversionof ExhibitG suitablefor publicdisclosure is providedin the non-proprietary versionof thisapplication (Enclosure A). A confidential versionof ExhibitG is providedin Enclosure C. An affidavitsupporting the requestfor withholding Enclosure C frompublicdisclosure is providedin Enclosure B. The proposedtransferswill be consistentwiththe requirements set forthin the AEA, NRCregulations, andthe relevantNRClicensesandorders.No physicalchangeswill be madeto PNPP,andtherewillbe no changesin the day-to-day operationof the plant as a resultof thesetransfers.The proposed transferswill not haveany adverseimpact on the publichealthandsafety,norwillthesetransfersbe inimicalto the common defenseand security.The application solelyrequestsapprovalfor the transferof ownership interests withinthe sameFirstEnergy Corp.(FE)familyof companies. FENOCrequeststhatthe NRCconsentto the transfersof controlin accordance with 10 CFR50.80andapprovethe conforming licenseamendments. FENOCrequests thatthe NRCreviewthisapplication on a schedulethatwillpermitthe issuanceof NRCconsentto the transfersof controlandconforming license amendments as soonas practicable. Approvalis requested by no laterthan April15,2016. Suchconsentshouldbe immediately effectiveuponissuanceand shouldpermitthetransfertooccurat 12:00a.m.on May31,2016. Theconforming licenseamendment shouldbe issuedeffectiveMay31,2016. FENOCdoesnot anticipateanyothermajorrequiredregulatory approvals thatwouldimpactthe schedule for completing the transfer. ServiceuponFENOCof comments, hearingrequests, interventionpetitionsor other pleadings shouldbe madeto DavidW. Jenkins,Esq.,FirstEnergy Corp.,76 SouthMain Street,MailStopA-GO-15, Akron,OH 44308,tel.(330)384-5037, andemail. djenkins@firstenergycorp. com. Enclosure C to this lettercontainsconfidential commercial material. Withhold from public disclosure under10CFR2.390and10 CFR9.17. Uponremovalof Enclosure C, thisletteris uncontrolled.
CONFIDENTIAL COMMERCIAL MATERIAL TO BEWITHHELD FROMPUBLIC DISCLOSURE PURSUANT TO 10CFR2.390AND1OCFR9.17 PerryNuclearPowerPlant L-15-195 Page3 Thereare no regulatory commitments contained in thisletter. lf thereareany questions, or if additional information is required,pleasecontactMr.ThomasA. Lentz, Manager FleetLicensing, at 330-315-6810. I declareunderpenaltyof perjurythatthe foregoingis true and correct.Executedon J u n e3 0 , 2 0 1 5 . PaulA. Harden
Enclosures:
A. Application withExhibits B. Affidavit C. Proprietary ExhibitG cc: NRCRegionlll Administrator (withoutEnclosure C) NRCResidentInspector (withoutEnclosure C) NRRProjectManager(withoutEnclosure C) Executive Director,OhioEmergency Management Agency,Stateof Ohio (NRCLiaison)(withoutEnclosure C) UtilityRadiological SafetyBoard(withoutEnclosure C) Enclosure C to thislettercontainsconfidential commercial material. Withhold frompublicdisclosure under10CFR2.390and10 CFR9.17. Uponremovalof Enclosure C, thisletteris uncontrolled.
EnclosureA L-15-195 Application withExhibits (50 pagesfoflow)
Page1 APPLICATION FOR ORDERCONSENTING TO TRANSFEROFLICENSEAND APPROVING CONFORMING LICENSE AMENDMENTS JUNE 30,2015 submittedby FirstEnergyNuclearOperatingCompany on behalf of FirstEnergy Nuclear GenerationoLLC and Ohio EdisonCompany PerryNuclearPowerPlant,Unit I DocketNo. 50-440.LicenseNo. NPF-58
UAA ' raljc I APPLICATION FOR ORDER CONSENTINGTO TRANSFEROF LICENSE AND APPROVING CONFORMING LICENSE AMENDMENTS TABLE OF CONTENTS SECTION PAGE NO. I. Introducti.on........o.o........................................................................................r......4 II. Statement of Purpose of the Transfer and Nature of the Transaction Making the Transfer Necessaryor Desirabl....................................................5 III. Supporting Information...........o..........................................................................6 A. GeneralCorporateInformation ..........6 B. ForeignOwnershipor Control ...........6 C. No Agency........... ................6 D. TechnicalQualifications ......6 E. FinancialQualifications .......7 F. Decommissioning Funding ................8 G. No AntitrustConsiderations ..............9 H. NuclearInsurance............ .....9 I. Standard Contractfor Disposalof SpentNuclearFuel 9 J. Agreement to Limit Accessto Restricted Data...... ........9 K. Environmental Review. ........9 IV. EffectiveDateand Other RegulatoryApprovols......................r..................... 10
- v. Conclusion........................o.......................o..o...................o......a4..........a.............4. 10
Page3 List of Exhibits Exhibit A ProposedChangesto the Facility Operating License and Technical Specifications Associatedwith the ProposedTransfer of the LeasedInterest in PNPP to FENGEN Exhibit B No Significant HazardsConsiderationDetermination Exhibit C Simplified CorporateLicense Interest Structurebefore Transfer Exhibit D Simplified Corporate License Interest Structureafter Transfer Exhibit E General CorporateInformation Regarding FENGEN and Its Parent Companies Exhibit F Form of Support Agreement between FirstEnergy Solutions Corp. and FirstEnergy Nuclear Generation,LLC Exhibit G FirstEnergyNuclear Generation,LLC Pro Forma Income Statements (Non-ProprietaryVersion)
Page4 Introduction Pursuantto Section 184 of the Atomic EnergyAct of 1954,as amended(AEA), and 10 CFR 50.80,FirstEnergyNuclearOperatingCompany(FENOC), acting as agentfor and on behalf of FirstEnergy Nuclear Generation,LLC (FENGen) and the Ohio Edison Company (OE), hereby submits the enclosedapplication to the Nuclear Regulatory Commission (NRC) requestingconsentto the transfer of the leasedinterestsin Perry Nuclear Power Plant (PNPP). FENOC requestsan order consentingto the transfer to FENGen of OE's 12.58percent leased interestin PNPP. This application also requestsa conforming administrative amendment(seeExhibits A and B) to the PNPP licenseto:
- 1. Reflect the proposedtransfer of leasedinterestsin PNPP from OE to FENGen;
- 2. Delete OE from the PNPP license; and a
J. Authorize FENGen to possessthe leasedinterest in PNPP being transferredby oE. FENGEN is currently licensedto possess87.42percentof PNPP. This applicationseeksto transfer the remaining interest in PNPP held by OE to FENGen. FENGen will own 100 percent of PNPP, ffid FENOC will continue to operatePNPP. This application also includes the required financial and other information to support its approval by NRC. FENGen is a direct, wholly owned subsidiaryof FirstEnergySolutionsCorp. (FES), which, in turn, is a direct, wholly owned subsidiaryof FirstEnergyCorp.(FE). FE's l0 electric utility operating companiesform one of the nation's largestinvestor-ownedelectric systems,with over 6 million customersservedwithin a nearly 65,000-square-mileare of Ohio, Pennsylvania,New Jersey,West Virginia, Maryland, and New York. Its generationsubsidiariesoperatenearly 18,000megawattsof capacity. In20l4, FE had revenuesexceeding$15 billion and net income of approximately$300 million. In accordancewith NRC's requirements,five yearpro forma frnancial projections are provided in Exhibit G. This financial information is confidential commercial information, and FENOC requeststhat Exhibit G be withheld from public disclosurepursuantto 10 CFR 2.390 and 10 CFR 9.17. Aredacted versionof Exhibit G suitableforpublic disclosureis providedinthe non-proprietaryversion of this application. A confidential version of Exhibit G is provided in a separateenclosure. An affidavit supporting the requestfor withholding the confidential version of Exhibit G from public disclosure is also provided in a separateenclosure. The information contained in this application demonstratesthat FENGen possessesthe requisite qualifications to own OE's existing leasedinterest in PNPP. The proposedtransfer of control of OE's interest will not result in any changein the role of FENOC as the licensed operatorof the facilities. Finally, this requestfor transfer of control of OE's interest in the PNPP licensedoes not involve any entities that are owned, controlled, or dominated by a foreign entity.
Page5 In summary,the proposedtransfer will be consistentwith the requirementsset forth in the AEA, NRC regulations, and the relevant NRC licensesand orders. No physical changeswill be made to PNPP, ffid there will be no changesin the day-to-day operation of those plants as a result of thesetransfers. The proposedtransfer will not have any adverseimpact on the public health and safety,nor will thesetransfersbe inimical to the common defenseand security. The application solely requestsapproval for the transfer of an ownership interest within the sameFE family of companies. FENOC respectfully requeststhat the NRC consentto the transfersof control in accordancewith 10 CFR 50.80 and approvethe conforming license amendments. II. Statement of Purpose of the Transfer and Nature of the Transaction Making the Transfer NecessarTor Desirable As part of corporaterestructuringsin 2005 and 2006, FE establishedFES as its affiliate responsiblefor the purchaseand sale of electricity in competitive markets. A wholly owned subsidiary of FES - FirstEnergy GenerationCorp. (Fossil GenCo) - was createdto own and operatethe fossil and hydro generationfacilities formerly owned and operatedby the regulated wires companies. Fossil GenCo is an exempt wholesale generator(EWG) and sells the output of its portfolio of generationto FES pursuantto a purchasedpower contract approvedby the FERC. FES, in turn, sells its power into competitive wholesale and retail markets at market basedrates. FENGen performs the samefunction as Fossil GenCo for the nuclear facilities owned by the FE subsidiaries,with the notable exception that FENOC continuesto perform its role as the licensed operator for the FE fleet of nuclear plants - PNPP, the Beaver Valley Power Station (BVPS), and the Davis-BesseNuclear Power Station(DBNPS). FENGen is an EWG, and sellsthe output of its plants to FES under a cost-basedwholesale contract approvedby the FERC and previously reviewed by NRC in connectionwith the 2005 and 2006 restructuring activities. Thus, majority ownership of PNPP, BVPS, and DBNPS was transferredto FENGen to further implement the restructuring of FE's electric utility operationsand to enhancethe ability of FE and its subsidiariesto competein electric energymarkets. However, atthattime, OE's 12.58percent interest in PNPP was subjectto sale-leasebackilrangements that were enteredinto in 1987, and this interest was not transferredto FENGen. Instead,OE enteredinto commercial arangements whereby FENGen acquiredthe rights to this 12.58percent of PNPP's electrical output and responsibilityfor the associatedcostsof this interestin PNPP. The leaserrangementsforthe OE's 12.58percentinterestin PNPP expire onMay 30,2016, and FENGen has acquiredthe rights to own this 12.58percentinterestbeginningMay 31,2016. Thus, FENGen requiresNRC's prior written consentso that this interest in PNPP may be transferredfrom OE to FENGen at 12:00a.m. on May 31,2016. The conforming license amendmentcan be issuedeffective May 31,2016.
Page6 III. SupportingInformation A. GeneralCorporateInformation The proposedlicenseefor the transferredinterest in PNPP is FENGen. The parent companiesof FENGen are reflected in Exhibits C and D (Exhibit C provides the license interest structure before the transfer; Exhibit D provides the proposedstructureafter the transfer.) The information regardingeachcorporateentity requiredby 10 CFR 50.33(d)(3)is provided in Exhibit E. All of the current directors and executive personnelof the corporateentities are citizens of the United States,and their mailing addressesare as shown for their respectivecorporateentities. B. Foreign Ownership or Control FE is a publicly traded company, ffid its securitiesare traded on the New York Stock Exchange and are widely held. Section 13(d) of the SecuritiesExchangeAct of 1934,as amended, 15 U.S.C. 78m(d), requiresthat a personor entity that owns or controls more than 5 percentof the securitiesof a companymust file notice with the Securitiesand ExchangeCommission (SEC). Basedupon filings with the SEC, FE is not aware of any aliens, foreign corporations,or foreign govemmentsthat hold or may hold beneficial ownership of more than 5 percent of the securitiesof FE. No foreign entities have any representationon FE's Board of Directors or rights to appoint any managersor directors of FE. The current directors and executive officers of FE, FES, and FENGen are United States citizens. There is no reasonto believe that the Applicant is owned, controlled, or dominated by any alien, foreign corporation, or foreign government. Thus, the transfer of control of the leased interestswill not result in any foreign ownership, domination, or control of theseentities within the meaning of the Atomic Energy Act of 1954, as amended. C. No Agency In seekingto increaseits interestsin PNPP, FENGen is not acting as the agent or representativeof any other person or entity. D. Technical Quaffications The technical qualifications of FENOC are not affected by the proposedtransfersof control of OE's leasedinterest in PNPP to FENGen. There will be no physical changesto PNPP and no changesin the day-to-dayoperationsof FENOC in connectionwith the transfersof OE's leased interestsin PNPP. FENOC will at all times remain the licensed operatorof PNPP, and there will be no changesin the FENOC senior managementteam resulting from the proposedlicense transfers.
Page 7 E. Financial Qualifrcations Generalinformation regarding FE and FES is provided in their 2014 Annual Report (Form l0-K), which is availableat: http://www.sec. gov/Archives/edgar/data/1407703/000103 129615000011/fe-12312014x10k.htm FENGen currently has a financial support agreementwith FE in the total amount of $400 million that is sufficient to provide assurancethat adequatefunds will be available to fund ongoing operationsand maintenanceexpenseswith respectto all of FENGen's interestsin BVPS, PNPP, and DBNPS. Financial information regarding FE, including its ConsolidatedStatementsof Incomeand ConsolidatedBalanceSheet,is providedat Pages110-114of the Form l0-K. Ithad more than $15 billion in revenueand net income of nearly $300 million in20l4. The value of its depreciatedproperty, plant, ffid equipment in service exceeded$35 billion, and its common stockholder'snet equity exceeded$12 billion as of December3l ,2014. In connectionwith the proposedtransfer, FENGen proposesto terminate the existing agreement with FE, and enter into a new financial support agreementwith FES in the amount of $400 million. A copy of the form of this agreementis provided as Exhibit F. Financial information regarding FES, including its ConsolidatedStatementsof Income and Consolidated BalanceSheet,is provided at PagesI l5-118 of the Form lO-K. It had more than $6 billion in revenueand negative net income of approximately 5244 million in20l4. The value of its depreciatedproperty, plant, and equipment in service exceeded$9 billion, and its common stockholder'snet equity exceeded$5.5 billion as of December31,2014. This Application constitutesthe 30 days prior notice required by Section 4 of the termination of the existing FE support agreementupon FES's execution of the Form of Support Agreement. FES intends to promptly executethe support agreementupon receipt of NRC's approval of the proposedlicense transfer as describedin this Application. In accordancewith 10 CFR 50.33(f) and the StandardReview Plan on Power ReactorLicensee Financial Qualificationsand DecommissioningFunding Assurance(NUREG-1577,Rev. l) (StandardReview Plan), FENGen's Pro Forma Income Statementsfor the S-yearperiod from January1,2016 until December31,2020 are provided in Exhibit G. Projectedcashflows forthe sameperiod are also provided in Exhibit G. Exhibit G is proprietary and is therefore provided in a separateenclosureto this submittal, and as previously stated,FENOC requeststhat this be withheld from public disclosure. A redactedversion of Exhibit G, suitablefor public disclosure, is included with this application. FENGen and FES have enteredinto a power supply agreementthrough which FENGen will recover its operating,maintenance,ffid capital costsassociatedwith its interest in PNPP, including the 12.58percent being transferredfrom OE. FENGen recoversits costsunder the power supply agreement,even if the nuclear units do not operate. FES currently has investment graderatingsof Baa3 issuedby Moody's and of BBB- by Standard& Poor's for its senior rmsecureddebt. (SeeForm 10-K, Page74.) Notably, underNRC's StandardReview Plan (Section III.l.b), an applicant that maintains an investment grade credit rating from at least two credible rating agenciesis presumedto meet the financial qualifications test. Thus, theseratings
Page 8 support FES' financial capability to meet its obligations under both the power supply agreement and the $400 million financial support agreement. The Pro Forma Income Statementprovided in Exhibit G showsthat the expectedrevenuesof FENGen from the sale of capacity and energy received under the power supply agreementwill cover FENGen's estimatedannual operating costs, for the five calendaryears 2016 through 2020, for its interest in PNPP. This Pro Forma Income Statementreflects results basedupon the current businessplan for operating PNPP. The assumedcapacity factors are provided in Exhibit G. However, even if PNPP doesnot operateas expected,FENGen will recover FENOC's costs of operationthrough the basedemandand energychargesin the power supply agreementand through a "formula rate" provision permitting FENGen to recover increasesin its capital expendituresand operatingexpensesthat exceedits basedemandand energy charges during the contract term In addition to the assuranceof the availability of funds to cover coststhrough the power supply agreement,FENGen will be able to call upon funds pursuantto the $400 million financial support agreementbetweenFES and FENGen describedabove. This provides further assurance that FENGen will have accessto funds sufficient to pay its pro rata shareof the fixed operating and maintenance(O&M) costs in the event of an unanticipatedplant shutdown. Pursuantto this support agreement,FES will make up to $400 million in funding available to FENGen to meet its obligations relating to its interestsin the nuclear units that FENGen owns. This provides a sourceof funds that is approximatelysix months'worth of fixed O&M costsforthe FENGen fleet of nuclear plants, as currently projected for the years 2016-2020. Further, FES and its affiliate, Allegheny Energy Supply Company,LLC, participate in a five-year syndicated$1.5 billionrevolving credit facility, which is availableuntil March 31,2019. FES's individual sublimit underthe facility is $1.5 billion while Allegheny Energy Supply Company, LLC's sublimit is $ 1.0 billion. As of March 3l , 2015,thereis $ I .177billion of available liquidity under the facility. This provides an additional sourceof funds that exceedssix months' worth of fixed O&M costsfor the FENGen fleet of nuclear plants. F. Decommissioning Fanding The existing trust funds held by OE related to their leasedinterest in PNPP will be transferredto FENGen. The FENGen nuclear decommissioningtrusts (NDTs) are held in external trust funds segregatedfrom FENGen's assetsand outside its administrative control. The funds are governed by the Master NDT Agreement with Mellon Bank, N.A. as Trustee,and the terms of that agreementcomply with the requirementsof 10 CFR 50.75(hxl). The existing "Master Nuclear DecommissioningTrust Agreement"incorporatingthe terms requiredby 10 CFR 50.75(hxl) will remain in effect and will govern the funds to be transferredby OE. The NRC minimum amount of decommissioningfunding assurancerequired for PNPP calculatedpursuantto 10 CFR 50.75(c)(the "formula amount") is approximately $679.59million. Baseduponthe total balanceof $486.36million as of December31,2014,the total NDT balancefor PNPP, after the transfer is completed, is expectedto exceedthe pre-paid balancerequired to use the "prepaymentmethod" under NRC's regulations in
Page 9 10 CFR50.75(e)(lxi).By letterdatedMarch31,2015(ADAMSAccession No. MLl50904447),FENOCprovidedinformationto establishthattheprepayment methodis satisfiedwhenearningsarecreditedaspermittedby NRC's regulationsusingan assumed SAFSTORapproach to decommissioning. G. No Antitrust Considerations In accordance with the Commission'sdecisionin KansasGasandElectric Company(Wolf CreekGenerating Station,Unit l), CLI-99-19,49N.R.C. 441(1999),antitrustreviewsof license transferapplicationsafterinitial licensingarenot requiredby the AEA. The existingantitrust conditionsin the licenseswill continuein effect. H. Nuclear fnsurance In accordancewith Art. IV.2 of the NRC Price-AndersonIndemnity Agreement for PNPP, FENOC requestsNRC approval of the assignmentand transfer of OE's applicable interest in the Price Anderson Indemnity Agreement for PNPP to FENGen in connection with the proposed licensetransfer. FENGen currently maintains the required nuclear energy liability insurance pursuantto Section 170 of the AEA and 10 CFR 140,and itmakes annualcompliancefilings in accordancewith 10 CFR 140.21(e)-(f). FENGen also maintains required nuclear property damageinsurancepursuantto 10 CFR 50.5a(w)and 10 CFR 140.11. I Standard Contract for Disposal of Spent Nuclear Fuel Upon transfer, FENGen will assumetitle to and responsibility for the storageand disposal of OE's transferred pro rata shareof spentnuclear fuel at PNPP. OE will assign,and FENGen will assume,OE's rights and duties under the StandardContract with the Department of Energy for PNPP. I. Agreement to Limit Access to Restricted Data The proposedtransfer doesnot involve any RestrictedData or other Classified National Security Information or result in any changein accessto such RestrictedData or Classified National Security Information. Existing restrictions on accessto RestrictedData and Classified National Security Information are unaffectedby the proposedtransfers. In compliance with Section 1a5(a)of the Act and 10 CFR 50.37,"AgreementLimiting Accessto Classified Information," FENOC agreesthat it will appropriately safeguardsuch information and will not permit any individual to have accessto such information until the individual has been appropriatelyapprovedfor such accessunder the provisionsof 10 CFR 25, ooAccess Authorization," and/or Part 95, "Facility Security Clearanceand Safeguardingof National Security Information and Restricted Data." K. Environmental Review The proposedtransfer will not result in any changein the types, or any increasein the amounts, of any effluents that may be releasedoff-site, and will not causeany increasein individual or
Page10 cumulative occupationalradiation exposure. Further, the NRC has determinedin 10 CFR 51.22(c)(21)that licensetransfersare categorically exempt from further environmental review. Accordingly, the license transfer will involve no significant environmental impact. IV. Effective Date and Other Regulatory Approvals FENOCrequeststhat theNRC reviewthis applicationon a schedulethat will permitissuanceof an orderconsentingto the requested licensetransferaspromptlyaspracticable.In anyevent, approvalis requested by no laterthanApril 15,2016. Suchconsentshouldbe immediately effectiveuponissuance andshouldpermitthetransferto occurat 12:00a.m.on May 31,2016. Theconformingamendment shouldbe issuedeffectiveMay 31,2016. FENOCdoesnot anticipateanyothermajorrequiredregulatoryapprovalsthat areexpectedto impactthe schedule for completingthe transfer. V. Conclusion For the reasonsstatedabove,FENOCrespectfullysubmitsthatthe proposedtransferof OE's leasedinterestsin PNPPto FENGenis consistentwith the requirements setforth in the AEA, NRC regulations,andthe relevantNRC licensesandorders.FENOC,therefore,respectfully requests that,in accordance with Section184of theAEA and 10 CFR 50.80and 10CFR 50.92, theNRC consentto the transferof the PNPPlicensesto FENGenandapprovethe conforming administrativeamendments associated with this transfer.
ExhibitA Page1 EXHIBIT A PROPOSEDCHANGES TO THE FACILITY OPERATING LICENSE ANI) TECHNICAL SPECIFICATIONSASSOCIATED WITH THE PROPOSEDTRANSFER OF THE LEASED INTERBST IN PNPPTO FENGEN I. Reasonfor the Change A 12.58percentlicensedinterestin the Perr),NuclearPower Plant (PNPP),is being transferred to FirstEnergyNuclear Generation,LLC (FENGen). This transfer requiresthe submittal of a conforming amendmentto the license for PNPP. The proposedchangesdelete somereferences to the current leasedinterest of the Ohio Edison Company (OE) (the "Transferor") and replace them with referencesto FENGen. Conditions related to OE's sale-leasebackarrangementsare also deleted,becausethey are no longer applicable. Referencesto OE will be deletedfrom the PNPP licensesincethis companywill no longer possessany licensedinterestin PNPP. II. Basis for the Change After the transfer of the ownership interest, Transferor will retain no responsibility for the regulatory obligations related to the transferredinterest containedin the PNPP license. Accordingly, the entity to which theseresponsibilities are being transferred,FENGen, must be identified in the licenses. III. Safety Assessment The proposedchangesto the license identiff FENGen as the 100 percent owner of PNPP and make other minor administrative changesrelated to the transfer of ownership to FENGen. No physical modifications are being made to any plant systemsor components,nor any changesto operations. Therefore,the proposedchangesare administrative in nature and will not adversely affect nuclear safety or safe operation of theseplants. IV. Description of the Proposed Changes The proposedchangesto the PNPP license are included as part of this exhibit. The following pagesprovide a copy of the PNPP licensemarked with the proposedchanges,and a copy of the re-typedPNPP licensepages.
UNITEDSTATES NUCLEAR REGULATO RYCOMMISSION 1 wAsl{ lNGToN,D.C. 29555'{100 FT.RSTFNERGY NVCLEAROPERATING COMPANY FTRSTENERG-Y NUCLEARGENEry\TlON,LLC DOCKET.NO. 5ryr40 qEBIJYNUCLEARI'-OJWER. PI-ANT.UNlTNO-1 z\,glLlI.YI PERATINGLIc EN-SE LicenseNo.NPF-58
- 1. The NuclearRegulatory Commission (theCommission) hasfoundthat:
A. The application for licensefitedby FirstEnerg!NuclearOperatingCompany(FENOC)I actingonits own behalfandas abentficrFirstEnergyNuclearGeneration, LLCandhi+ w(ticensees)complieswiththestandardsandrequirementsofthe AtornicEnergynct of 1954,as amended(theAct),andthe Comrnission's regulations set fodh in 10 CFh Chapterl, and all requirednotifications or bodieshave to otheragenci'es beendulymade; Construction of the PerryNuclearPorer Plant,UnitNo. 1 (thefacility),has been substantiallycomplebdin conformlgwithConstructlon PermitNo. CPPR-{48andthe application,as amended,the provisionsof the Act, andthe regulations of the Cornmission:
'lfENOC is authorized to ac{as agentbr FirstEnergy NuclearGeneratlon, tt-C mi-gUe-
@andhasexclusiveresponsibilityandcontroloverthephysicalconslruction, operatbn,and msintenance of thefacility. AmendmentNo.{eF
- c. Thefacilitywill operatein conformity withthe application, es amended,the provisions of the Acil,and the regulations of the Comrnission (exceptas exemptedhom compliance irt Sestion2.D befow):
D. Thereis reasonableassurance:(l) thatthe activitiesauthorizedby this opentinglicense can be conductedwithoutendangaingthe healthand safetyof ttrepublic,and(ii)that suchactivitieswill be conductedin compliance with the Commission's regulaUons set fotth in 10 CFRChapterI (exceptas eximptedfromcomptiancein Sec,ti6n 2.0 betow); E . The F_iptEneEyNuclearoperatirp companyis technicailyquarifedto engagein the actlvitiesauthorizedby this licensein accordance withthe Commission's regulationsset forthin 10 CFRChapterl; F. The licenseeshavesatisfedthe appllcableprovibionsof 10 eFR Part140,*Financlaf ProtectionRequlrements and IndemnityAgreemenb,'d the Cornmission's regulations; G. The issuanceof this licensewill not bc inimicaltothe commondefenseand securityor to lhe healthand safetyof the publlc; H. Afierweighingthe environmential, economlc,technical,and otherbenefitsof thefacility againstenvironmental and othercosE and consideringavailablealternatives, the issuarrce of this FaciligOperatingLicenseNo.NPF-58,sublectto the conditions hr protectlonof the environment set forthin the Environmental ProtectionPlanattachedas AppendixB, is in accordance with 10 CFR Part51 of the Comrnission's regulations and all applicablerequlremenFhaveFen satlsfied;and Thereceipt,possession, and useof source,byproduct,and specialnuclearmatsrialas auhorizedby this licensewill be In accordance withthe Commission's reguhtionsin 10 CFRParts30,40, and70. 2, Basedon the foregoingfrndingsregardingthisfacility,the Partial-lnitialDecisions igsred Decernber 2, 1983,and Septamber 3, 19e5,by lhe AtomicSafetyand LicensingBiard in Delete", and legqF to this facility(affirmedby AL48-841,datedJuly25, 19S6tand pursuanitoapprovalby the NudearRe,g_ulatory Commission at a meetingon November?, 198b,FacitityOpbiating OhioEdison Lhense'No.NPF-56,whichsupersedes the licenlefor fuefloadingand low po*er iesting, LicenseNo.NPF.45,issuedon March1E,1986,is herebyissuedto FirstEnbrgy Nucleai OperaUng C FirstEnergy NuctearGeneration,LLC, (the A. Thelicenseappliesto the PerryNuclearPowerPlanf Unlt No. 1, a boilingwaternuclear reactorand associatedquipment (thefacitig),ownedby FirstEnergy Nuctear Generation,LLC(ovrner)ldC feaccCle ghioECieenemfany (bsddd Felleetively the {iaisecs}. Delete"andleasedto Ohio EdisonCompany(lessee) collectively the licensees)" Amendmentl.lo.ttlt
The faciligis locatedon the shoreof LakeEriein LakeCounty,Ohio,apprcximately 35 milesnortheastof GlevelanO, Oniq ind is describedin the licensees'FinatSafetyAnalysisReport,as supplemented andamended,ariuin the licenseeslEnvironmental Report,as supplemented and arnended. B. Subiectto the conditionsand requirements incorporated herein,the Commissisnherebylicenses: (1) I ' FENOC,pursuantto Section103of the Act and 10 CFR Part50, to possess,use,andoperate.the facilityat the designatedbcationin LakeCounty,Ohio,in accordance with the procedures and limitrations set forth in this license; (' 2' ) F i r s t E n e r g y N u c l e a r G e n e r a t i o n , L [ e t o p o s s e s s t h e facllity aiirredestgnated location in LakeCounty, Ohio,in accoriance withlheprocedures and limltiations set forth in this license; (3) FENOC,pursuantto the Act and 10 cFR Part70, to receive,possess.and useat anytimespecial. - nuclearmaterialasreactorfuel,in accordance with the lirnitations for storageandamountsrequiredfor reactoroperation,as describedin ttre finat Safety Analysis Report as supplemented and arnended; (4) FENOC,pursuantto the Act and 10 CFR Parts30' 40' and 70, to receive,Possess,and useat any timeany byproduct, source,arrdspecialnuclearrnaterialsuch as sealed-neutqlsourceslor reactor and sta(up,sealed=ouicrsfor ieactoiinsrumenlationandradiationmonitoringequipmentcalibration' fissiondetectorsin arnountsas required: (5) FENOC,pursuant to the Act and 10CFRParts30,40, and70, to receive,possess'.?niusein as to restrlction amountsas requiredarrybyprodu4 iource, or rpecialnuclearrnaterialwithc[Jt anarvsr oi instrument calibnation or associated with radioac{ive dremicalorphysi:alform,tr sampie apparatus or components; aM separale,such (6) FENOC,pursuantto FreAct and 10 CFR Parts30,40,.and70,to possess,but not and special nuctear matedib r= m"y be producedby the operationof the facility' 4rpoduci Deletethe (7)(a)and (7Xb)paragraphs and replacewith"(7) Deleted" AmendmentNo.1*
ions-traneaetiens, SFeeifieally; a leeeeranCanyeneelsewhemayaequireanintcrest gnCer thsetraneaetierc areprehibitCftornexerebing Cirec*ly er indiredlyany eentrel ever[re lieenees ef PNPPUr*t1, FerBurpeses efthioeenditien the limihtiens ef 19FR 601;sonewh effeetandas maybesubseguently rmcnCeCr arefullyapplieabhte thclcssoranCanyeueeeseer in intereet te that transadiens shallharneeffeetenthelienseferthe PerryNuclcarf-aeiht., ieense-(b) Further; thelieenseee erealeereqircCte netifflhe NRh writingBrierto any ehange in: (i)thetermser eenditens ef enyleaseagresments ctcceutsdaspartof theeetraneaetiene; (ii\thePNPPOfcratingAgreement; (iii)thccxirtingiprepedy ineuranee eeverage fer PIIPPUnit1:ar (iv)anyaelionbya lerrororottrcrcthat mayhavean advereeefre'tentheetr eperatien ef thefaility, C. Thisficense shallbe deemedto containandis subjectto the conditions specifiedin theCommission's regulations setforthin 10CFRChapterI andls subjectto all applicaHe provislons of theActmd to therules,reguldions, andordersof the Commission nowandhersafierin effed;ard is subjec't to theadditional conditions specified or incorporated below: ( 1 ) Maximum.Pouver Level FENOCis authorized to openatethefadlityat readorcorepowerlevelsnotin sxcess of 3758megawatts thermal(100%porcr)in accordance wih theconditbns specified herein. (2) Technical Soecifications TheTechnical Specificatione contained in AppendixA andtheEnvironmental Proteqtion Plancontained in Appendix B,as revisedthroughAmendment No.{+ l areherebyincorporeted intothelicense.FENOCshafloperatethefacilityin accordanewiththeTechnielSpecifications andtheEnvironmental Protec{ion Plan. (3) AntitrustConditions
- a. FirstEnergy Nuclear Generation Corp.
Amendment No.-{&
shallcomplywiththe antitrust delineatedin AppendixC to this conditions license;AppendixC is herebyincorporated intothis license.
- b. FENOCshallcomplywiththe antitrust conditions delineated in AppendixC to thislicense as if namedtherein.FENOCshallnot marketor brokerpoweror energyfrom the Perry actionsof FENOCto the extentthat said actionsaffectthe marketingor brokeringof power or energyfrom the PerryNuclearPowerPlant,UnitNo. 1, and in anyway,contravenethe antitrustconditioncontainedin the license, (4) Deleted (5) Deleted (6) FireProtection.(Section9.5.SER,SSER#1. 2, 3, 4. 7, and8)
FENOCshallcomplywith the followingrequirements of the fire protectionprogram:FENOCshall implementand maintainin effectall provisionsof the approvedfire protection programas describedin the FinalSafetyAnalysisReport,as amended,for the PerryNuclearPowerPlant and as approvedin the SafetyEvaluationReport(NUREG-0887) datedMay 1982and SupplementNos. 1 through10 thereto,subjectto the followingprovisions:
- a. FENOCmay makechangesto the approvedfire protectionprogramwithoutpriorapproval of the Cornrnissiononly if thosechangeswouldnot adverselyaffectthe abilityto achieve and maintainsafe shutdownin the eventof a fire.
(7) Deleted (8) Deleted (9) Deleted (10) Deleted (11 ) MitiqationStrategyLicenseCondition The licenseeshalldevefopand maintainstrategiesfor addressinglargefires and explosions and thatincludethe followkeyareas: (a) Firefightingresponsestrategywiththe followingelements:
- 1. Predefinedcoordinated fire responsestrategyand guidance
- 2. Assessmentof mutualaid fire fightingassets
- 3. Designatedstagingareasfor equipmentand materials AmendmentNo. 1e?
RevieeCby letterCetedJuly 11; 3097
No change. Providedfor information only.
-5a-
- 4. Command andcontrol
- 5. Trainingof responsePersonnel (b) Operations to mitigatefueldamageconsidering thefollowing:
- 1. Protection and useof personnel assets
- 2. Communications
- 3. Minimizing firespread
- 4. Procedurlsfor implementing integratedfire responsestrategy
- 5. ldentification of readily-availablepre-staged equipment
- 6. Trainingon integratedfire responsestrategy
- 7. Spentfuel poolmitigation measures (c) Actionsto minimizereleaseto includeconsideration of:
- 1. Watersprayscrubbing
- 2. Doseto onsiteresPonders (12)ControlRpomHabitrabilitv LicenseCondition Uponimplementation of Amendment No.148adoptingTST.F448,Revision3, the determinationof conbolroom envelope(CRE)unfiltered air inleakage as ,
requireoby sR 3.7.3.4in accordance wiinrs and.the 5.5.14.{l), assessment of cig nauitluitityas requiredby Specification shall 5.5.14.c{ii), be considered mel Following imPlementation: Thefirctperformance of sR 3.7.3,4,in accordance with {a) of 6 Specifrcation 5.5.14.c(i), shatlbewithinthe specified Frequency y."o, plusthe 18-monihallowance of SR3.0-2, as measured from b*cemner2004,the dateof the mostrecentsuccessfultracer9{s-!e$ as statedin the responseto GenericLetter200$01 datedMay30, 2006,or withinthe next1'8monthsif the timeperiodsincethe mostrecent successfultracergastest is greaterthan6 years' (b) Thefirstperfornrance of the periodicassessment of CREhabitability, Specification 5.5.14.c(ii), shallbewithin3 yearc,plusthe 9-month of SR 3.0.2,as measured frombecember2A04,the dateof the mostrecentsuccessfultracergastestas statedin the responseto
"[o*anc" GenericLetter2003-01datedfu"y 30,2006,or withinthe next9 monthsif the timeperiodsincethe mostremntsuccessfultracergas test is greater than3 years.
(c) Thefirstperformance of the periodicrneasurement of outsideair intake andexhaustdamperleakage, Specification5.5.14'd, shallbewithin plus 24 months, tire 1g4day aliowed by sR 3.0.2, as measured fromthe dateof the mostrecentsuccessful damper leakage test. Amendment No.148
No change. Providedfor information only. D. FENOCis exempted from:1)the requirements of Sestionlll.D.z{b)(ii), containment airlocktestingrequirements, AppendixJ to 10 CFRPail 50,duetothe special circumstance described in Section6.2.6of SERSupplement No.7 authorized by 10 CFR50.12(a)(2xiii) and2) the requirements of SectionlV.F.,FullParticipation Exercise,of AppendixE to 10CFRPart50,due to the specialcircumstance described in the Exemption datedNovember 6, 1986.Theseexemptions areauthorized by law, will not presentan undueriskto the publicheatthand safety,and areconsistent withthe commondefenseandsecurig.Theexemptions are herebygrantedpursuantto 10 CFR50.12.Withthe grantingof theseexemptions, the facilitywilloperate,to the extentauthorized herein,in conformitywiththe application,as amended, the provisions of the Act,andthe rulesandregulations of the Commission. E, FENOCshalffullyirnplement andmaintainin effectall provisions of the Commission-approved trainingandqualification, physicalsecurity, andsafeguards contingency plans,including amendments madepursuantto provisions of the Miscellaneous Amendments andSearchRequirements revisions to 10CFR73,55 (61FR 27817and77822)andto the authority of 10 CFR50.90and 10CFR50.5a(p). The combinedset of plans,whichcontainSafeguardslnformationprotectedunder 10CFR73.21,is entitled:"PerryNuclearPowerPlantPhysicalSecurityPlan"Revision 2, submitted by letterdatedMay18,2006. FENOCshallfullyimplement andmaintainin effectall provisions of the Commission-approvedcybersecurity plan (CSP),includingchangesmadepursuantto the authority of 10CFR50.90and10CFR50.5a(p).TheFENOCCSPwasapproved by License Amendment No.158. F. Defeted G. The licenseesshallhaveandmaintainfinancialprotectionof suchtypeand in such amountsas the Comrnission shallrequirein accordance with Section170of theAtomic EnergyAct of 1964,as amended, to coverpublicliabilityclaims. Amendment No.158
Replacewith InsertA (seebelow)
'rssuance shallexpireat midnighton Merch18' H, Thisltcenseis etfectiveas of the dateof and 2026.
Y
- e. AAtr! --- -l:
he directh,orufero,fthcliecntefromPcnrltyfvrnia colvcrompany;thio ryifn qmpany;qEs ani tfleTohdeECisen EomFanY; F Nr.lsrr, tnc,'T,c erovetardebcb; iilunliiritirornpanlt oPctttfulg orltPalu md Fiotg,,"*, norr"a,errerauorr eorp:(FEr{erreoij;'Firilirreigy Nuclaar 6iF.Jshaililripfi withthefoildwing eondition! nobd beltr rir*tEnrru,lturtearGenention b FENeenG*ef hir htereb in PorTyr Fcnnsylven n, {gn thilesing deb(s) ef th transferE gomFsI; eS lrio Edison PowcreorrPaliy,TheelcvclarldElEEticlllurrrirratirE QomP?g; ell Ef ee$ fen5feE/5 Nrrl""r, lnr,, ,nd Tohdo Edisql eompnyshail#;sfer te FENenGe' aldftionaldrnounr ei ualt9 rcr rttirrilrgfEilds t..r.d F,orti.m.r p'"ny, .rJ Grdli p rENdi6' j,ne aflnC hrtl n6t VAt 1*e05, b,tn"tv.t ip'q'"icqi tl "ieli"qliqfea esBmd trust bytt c tkrc of doling,#r ;i de fond!!h"[ h; dip"dbd ln'e -ep"Eh ee[ret"d uiit b h =e9re""tdfiet ronctu, tt c ,"rern intre sarnearounils rcecioei'iith-dspgctFt cLiuii+ blt:fufrq enerassee erreHeenec. anuoupHe nsaeminisuaiive edntrelr as itftFt: fund
; , I regubriEne, ancl-ENenorshallbke allnceessary sFFste ensufle thit thisexternal I yrith ;i tte'srcer aPPrsring:te hanlr ef he b msinblnd in accofdrncc thcfcquiruments
$fu reqsircments f 1gFRgedion 5b-,76r TleFortingaFtdredrdheeFingfsrcesmmissiening
+tannin#-
I I ' t lrrrits'irt'?Grf Ffro'F'nefr 'l F61#'er B; ?y$e dateof eloliruoriE33{13t$ - l'3ll; i ffiliinii'iin"q"e{ltr!3qil IiriLJitie
-?
miltie" r**fr:-:l tin+gs6e"$a*i i:- nnn.E 'l^tiaroi il pte"Heaacig.nal ta
]a aranrlda rr{,{ilianal
&rndinA kr-Ve
-r- a^-r.!-^l ilGde"t -n"tlJtrt"tq$"intpptopiEt I Fi6#-6;; b *eltiln ttq'ittt"ntt I ffi ffi Amendment No-'{+l-
FORTHENUCLEARREGUIATORY COMMISSION ORIGINALSIGNEDBY: HaroldR. Denton,Director Ofriceof NuclearReactorRegulation mentSAPPendices Attrach 1.AttachmentsI -2
- 2. AppendixA - TechnlcalSpecifications
. (NUREG -1204)
- 3. AppendixB. Environmental Protec{ion Plan
- 4. AppendixG - AntitrustGonditioirs Dateof lssuence:November13, 1986 Arnsndment No.l+F
lnsertA: Basedon the Commission's Orderdated , 2016regardingthe directtransfer fromOhioEdisonCompany(OE)to FirstEnergy NuclearGeneration, LLC (FENGen),FENOC and FENGenshallcomplywiththe followingconditionsnotedbelow. A. OnJune 1,2016,OEshalltransferto FENGenthe accumulated decommissioning funds heldby OE for Peny. All suchfundsshallbe depositedand heldin FENGennuclear decommissioning trustfor Perryalongwiththe otherfundsmaintainedby FENGenfor Perryand shall be maintainedin such trust outsideof FENGen'sadministrativecontroland in accordance withthe requirements of 10 CFR 50.75(hxl). B. The SupportAgreementin the amountof $400 millionfrom FirstEnergySolutionsCorp. (FE Solutions)describedin the applicationdated June 30, 2015 shall be effectiveand consistent with the representationsin the application. FENGenshall take no actionto void, cancelor modi! the SupportAgreementwithoutthe priorwrittenconsentof the NRC staff. FENGenshallinform the Directorof the Officeof NuclearReactorRegulation,in writing,no laterthan 10 workingdays afterany fundsare providedto FENGenby FirstEnergy Solutionsunderthe termsof the Support Agreement. C. Deleted"
APPENDIX C PESRYNUCLEARPOWERPLANT,UNlTNO,! NPF.58-ANTTTSUST CONpTTTONS FOR FIRSTENERGY NUCLEARGENERAIION.LLC A The lhenseesaresubiectto the foflowingantitrustoonditions: Definitions AooIlcantr shall mean thetvrcornpanrcs Iistedabove. E4tlUthall.meananyele.{ricgenerationandro? distibutionsystemor municipality or operativewitha stetubrydghtor privllegeto ngEgein eitherot the3efunclbns. Wheelhoshallme8nirensportetion ot eleclrlcltybya ufilty orer its lincsh,r anodErudliv,inctudingthe receiptttqn Bnddeliveryb ano0rerBysbmof trkeamounBbutnotnecrsserily$e samenergy.Fedlral PowerCornmhsion, The1970Nationil pos,.r Su;rrv. part i, p. i-244. FhandlApFnAnCf Ito "Aoolicant" I Licensino Conditiong I (l L Appli:nf shallnotcondldonths eelr or exchangeof wholesalepou/ror coordinafion l seruic.s
- uponlhecondjtion thattty cth.r enw (a) entrarintoany agrBement or understandlng restrictingthe use of or alienationof sucfi energyor servicesto any cugtomersor tenibriasl (b) enbr intoany agreementor understanding requiringthe receivlngentityto, giveup anyother poiler supplyallemativesor to denyitselfany marketoppoduniiles; (c) withdrawany ,petitionto inlerveneor foregoparticipationin any proceedingbeforethe NuclearRegulatory Commbsionor refrainfrom ins{gatingor prosecutirgarryantitrust actionin anyotherforum.
Amendment No.'ft
Change"Applicants" o "Applicant" 2 lppticants,andeachof them,shall offer interconnectlons uponreasonable termsandconditionsat the_r,eqqgst of gl.ygitrerCieiiri.-enlilvii;;i";;'" the Combined Company Territories tCtcit,-suir,fnterconnection be available9Af99 (with due'relardfol anynecessary and appiiiiuie-iai.ti-to procedures) .for operation-ina closei-:ry!tgl-i!'nirrron0us - operattng-miae
-trans-i f requested by tht i nterconnecti ng entitv( ieiJ . gdrir,ip-oi mlssionlines andswitching statiois assoliatiu-rrihiucr,-ini*"ionnection shall remainin the handsof-tne party funding-tfi.'{ntirconniition iudjiit, however,to any.necessary iiocicures ier it ing to di i;ilecti on facilities at the polntirF powei' -safety bplivery. suc[-iltitattoni on ownership shall be the least'necessary to achleve ieasonable sariiy-prailtcesand shall not serveto deprivelurchasing r entlties of a means to effect additionalpouersuppiyoptions.
(31>tll icant+ shall engagein wheelingfor and
- entities in at the reguestof other the CCCT:-
(a) of electric energyfrom delivery points of Applfcant+ to the e n t i t y (i e s ) ; a n d , - (b) of power.generated by or avallable to the other entity, a s a r e s u l t o f i t s o w n e r s h iopr . e n H t l e m e n t s * - f n - g e n e r a t i n i ' ivervpornts or Appl icants{iiiigiilEo by lf,:t))lli';rllrt:t
- l-Yf*!lng.leyices.shal I be available-with respactto anyunused capacityon the transmissionrines of Applicint+,
ngt ieopardize Applfcants'^system. -[o ;;ili In tiie
- f:Ilg se.rvlsei to.othe_rtirrities oue i;;ii-oi'[ipi;;;ffi lnsert"s" eTrecteduntil reductfonsof at leaii s percent l:u:"!::n_T11. il transmisiion c;il;ify-qTiil;id; ;; ;iil; ;#iiffi;-
andthereaia;;-;h;r i te mii,'in-i.iiliriiofi'to 11,.1*::_llgc?gg!q reductions** imposed uponotherApplicant+lr itris prbciialng. Change"Applicants" "Applicant"
* "Entitlement"lncludesbut ls not llmited to powermadeavaflableto an entity pursuantto an exchange agreement.
** Thg.obJectlveof thfs rqufrernnt is. to preventthe pre-emption of unused capaci!r gn the llnes of oneAppllcant uy oltri" -iorripEti6ve nppiiiahti or-lv enuties the transmlttinq Applicant deems- nbhcompetii-lve. entities are to be allowedthe-opbbrtunriy the-opbbrtunftyio to o.i;eiop'"fii[-p*i, devel lk powerseririces i.r[i.es options oprionsevenif rhis this i:::l::-lT^I*:tllgI?trbn-gf cnico'(c"nf'Ii"A;.q-?i*i'-ciS.iliiitioi"eiouii s rerrei i s requi v.r t. vYl.,
rgain"oiaer-il;;;i; pili;[iation
- Irl:Ti::1gl^:h11nil:i.
of the effects of Applicantgl '7 M . lllegatiy stistaineddomlnanii.
hange"Applicants" "Applicant" 3 A p pllc a g t s s h a Il m a k er e a s o n a b lper o v i s i o n sf o r d i s c l o s e dt r a n s m i s s i o n requirelftents of other entities in the CCCT in planningfuture trans-m i s s i o ne i t h e r i n d i v i d u a l l y o r w i t h i n t h e C A P Cgbr o u p i n g , B y u d i s c l o s e d ' , is meantthe.giving gf.reasonable advance notifilatibn 6t fuiure requiie-Hl:^l{^entities utilizlng wheeling servicesto be made aviiiaUte-dy (4) (a)
$ O p l i c a n t s s h a lI m a k ea v a i l a b l em e m b e r s hI iNp CAPCO
'in to any entlty the CCCT with a systemcapabllity of lb l-fr or greater; (b) A group.ofentities with an lggregatesystemcapabllfty of 10 l,1d 0r greater mayobtain a single menbership ln CAitC0 on i collective b a si s ; *
( c ) Enti.ties applying for membershlp in CAPC0 pursuantto Lfcense Condltion4 shall become mernber! subject tb the termsanOcon-ditions of the CAPC0 l'lemorandum of Understandlng of ieptemUerf+, 1967rand its.imptementingagreementsieicept ifiai ne]rmembers may elect to.partlclpate on an gqual percintage'of reierve basli ialtrern than a p/ryallocailon formulafor'a perloi of twelveyeiri iro, date of entrance.** Following or entrance.** enEranc.-- Following fof lowing the twelf year the twelftii twelfth vear of enirance. entrancer ne11lnesmembers members shall bq expectedto adhire to such aliocatlon-mitiiodi-ai-ire-I["n as are then emplg{edby CAPC0 (subiect to equal opportuniiy ior natver-oi ipecial considerationgrantedto orlginal CAPCb memberi ulhichthen ire in effect).
- 8 . 9 ., l t h o l e s a l eC u s t o r n e o rf 0 h i o E d l s o n( l , l C 0 E ) .
- The selection of the lZ-year perlod reflects our deterrninationthat an is necessaiy_sihce the p/N formuiatrii-a rriign{reO-eriect igjl:$Tt.period ot discriminatingagalnst small systemsand forcing themto forigo economies of scale in genera_tion in order t-o avold carryfng ixcesslve tevefi oi-i:iieiies.
He also founi the P/t{ fs not-entirely-frratlonal-asa methodof reserveallo- - cation. l{e haveobservedthat Applllants themselves piovfOeo-adJuitrnent"- periods andwaivers to integrate'tertaln Appllcantstirto tfri CnplOreierye TelYlrementprogram: Tlte lZ-year perlod sirbuldpirmtt-nen iniiants to avold initial dlscriminationbut to acconmodate_and adiust to the CAPC0 systemover - somereasonableperlod of tlnre. Presumably newintrants rlll be ac[uiring ownershipsharesand entltlenpnts durlng the 12-yexrperlod so that'iCviiie consequences of applyingthe p/if fonnulaylll be-mltlgated.
Change"Applicants" to "Applicant" 4 (d) ilewmembers joininq CAPC0 p u r s u a ntto t h i s p r o v i s i o n r e l i e f s h a l l n o t b e e n t i t l e d t o e x e r c i s ev o t f n gr i g h t s u n t i t osf u c ht l m e g : t h e s y s t e mc a p a b i l i t y of the joining member equalsor exceeds the systemcapabiI ity o? the smallestmember of CApCO whichenjoys v o t i n gr i g h t s .
- gblfPll::l!*.:g l -:91I tqi ntenance power_to resuestins m
i';'ffiIlfillT;ilii"'jl,i:ili:'il1fl a k ea v a l l a b l e : (, -al ) to each rrr:rlr^ rrrqll^Ll^. , r entities tn the
- ilj::';;olT,llt*
other either pursuantto the CApC0 aqree-ments.op r u r s u a ntto b i l a t e r a l c o n t r a c t ; or (b) to non-Appl outsidethe CCCT. icant 6ntliles (6) flttlirtt :!111tqll.ernersency
.ll,rrdi!ign:,::'o rl::.
polerto r:equesilns
'than enililes in the cccT
- llT: (ll to eachother eithei. ravorable tf,oi!nppii.intrmale availabler to td-inpbb'agr..**ntsor pursuant pursuantto bilateral bilateral contract; contract;or or (b)(b)fursuant to non_Appiicant non_nppiicant entitles entiHes outslde outslde the CCCT.
Wppl 'whenicant+ shill sel I economy energyto reguesillg enttties ln the CCCT, aytilable, 0n termsand-condiiionino-iessfavorablethan those avallable: (t) to eachothereitherlfiuriu.nt to irri cnico-ag;e*ilInit pursuant to bilateral contracti or (b) to non_nppiiiant or the CCCT. entities outslde ( 8 ) Applicantsshall sharereserveswith aly interconnected^generation entity in the cccTuponrequest. requesli"ng ;;tiii ir,.ii-rrive-iil optionof sharing-reserves-on an equal Tha peridntigeSasiso-ruv ut. of the cApc0p/ll allocation formulaor on any bttrerruiuaiii'igrl.i'ble basis. A p p l i c a n t ss h a l l m a k ea v a i l a b l e to entities in the CCCT accessto t h e D a v i s - B e s s le, ? a n d 3 a n d the Pemy L and2 nuclearunits and any other nuclearunits for whl . Appllcantsor any of themrshall r a consruction pennit r operatingI icensedurlng the
- our obiectiveis to prevent impedlmentt- !o the operationanddevelopnent of an area-wlde powerpooi throught!. inauiliiv-o-i ilsser
-uhiieen66es to respond timelv or to nakenbcessafJ nTanlilg'iorunitr[nts. nli'iriitt ner member entities th_e riiii,I-sri;'ffifjt{:i iiffil?ili1ll":o:i:
the successful
-operation ll'l;.t?j*i;.jl*lj,;i; of .the'pili: ror-irroieiirf ler enfiiles whichdo not lvfshto assume the broad ranle of gbiigitions-issoclated wfth cApgg ship we haveprovided for accessto uuli p6*.r-iiruiceoptionsuhichwl1 member-further their ability to surviveandotiei-corpiiiiton in the ci;i:" v'r
-5 nefl 25 years. Suchaccess,at the option of the requesting entity' shall be on an ownership shareroF unit parti;ipaiiin 0r contractual-pre-purchase of powerbisis.* faln e1t1!v{or co'tlecuve sroupof Iniltiei) riv ouiiin';;-;;"iili "equiiiino of, the capacilvpf the-Davis-aesie inJ-ie.ri [niir and?0sof future units. (subject to.the.2S-yeartinritati;;j exceptthat gnce-lnyellity gf entities havecontractedfor alf oii{i;il-totaling 1Of,.0rzOxrFSpctivelyr no iuritrer-paiti;iilii; tn any given unlts needbe bffered.-
(b) Conmitments for the Davis-Besse and PeryyUnlts nrustbe madeby lequesti!9 entities rllthin two years aftir this Oeiision"'[eio*es final. conmitments for future lrntti nust ue mice;itii; tilr.r, after a constructionpennlt applfcation-is-iiiiC-wigr rlsi..t' to Irffi.*-t ofiill'.'r[:' le$iiiT; l":fi.3i;ff':,llilTlilll.ltr'llil,il;.till: Applicantsilltni.io cdnstrucithe uirtt, r*triitrever is earller; I proviiei'-lgqgr, that the irme-f;; makingthe comnttrcnt shall
@ilatleastthreemonthsatc6r_t[e-iili'g-;;;il; aPpllcation for a construclJon pirmit. lJherean Appiii.ni i.irr to operatea P9]eal.plantUlh relpectto rhtch tt diA not frave-un interest at the timeof filing the appiiiition'ior irre-ioniiruction permit' the timeperlodsfor iormitmlhtsitait $ gie-sim*-jxc.pt that reference shouldbe to the operiiing-iiiense,ngt the construction permi t, 4 p p l l c a n t ss h a l l s e l l w h o l e s a lpeo w e rto any reguestingentity ln the
!CCT,ln amounts needed to meetitt or part of suchentity's requfrements. -of The choice as to whetherthe agree*entshouldcoyeral I or part gntily's requirements the shouldbi madeby ' the entity, not the Applfcantor A p pfl c a n t s .
Change"Applicants" to "Applicant"
- R e q u e s t i negn t i f i e s r e l e c t i o n a:_tg tle type of accessmaybe affected by p r o v i g f o l s or PrsYrsrons o f state S t a t e llaw a w relating r e l a t i n g-to dual ownersirip of generitionfacliiiii! by munlci.paf llrunrcrpa I fIEIes tles andand lnvestor-own6d lnvestot'olrDdutll utriitrei;-
ltles. iilh l.q"i-may Such iiri-frii-ir,iiig, durinqthe changeduring-l1e periodof applicabi.lity of thesecondiilons: fi;;roiiigrv, -,ri iirow requ-sting enErEres entities e n t i t i e s Eotto o Deb e gulded be guided g u i d e d by b y relevant r e l e y a n t leoal l e o a l and e n d financlat r;iriii'r Fnneir{a*}{a-- /i--t..rr-ioniiderafions Cormlssion regulations 6n nuclear o power Iiniiriing oi". o plant lant o ownership) y n e n s h t n t {ln n ffashionfn{ r c h i a n { n a }thefr harrr requests.
Change"Applicants" to "Applicant" 6 ( 1 1 ) Theseconditionsare intendedas mininum conditionsanddo not reglggAppl icants from offering add!tiona'fnhoiesalepower-Jr c o o r d i n { t i o ns e r v i c e st o e n t i t l e i w i t h i n o r w i t h o u tt h e ' C C C T , HoweYer.n ApplJcaltgshall not denywholesaleporr or co6rdina6on
- Srvig:5 Fqulred by thesecondltionsto non-ilppllcant eniltles in the CCCT baied uponprior cormltments arrived ii ln the CApCo-HBno-randum of Understanding or implementlng agreements.Suchdenlii shalt
!9 ftg.rded as inconsiitent wittr the pirp6se ane intent of theie con-d it i o n s .
The aboveconditionsare to be implemented in a mannerconslstent with the.provisionsof the FederaiPorerAct andaii-rrt*i,'ifriig.t 0r practices in connectiontherewithar? to be subiect to ihe ipfrovaf of regulatoryagencieshavlngJurisdlction over thim.
For Information Only UNITED STATES NUCLEAR REGULATORY COMMISSION WASHTNGTON. D.C.29555-0001 FIRSTENERGY NUCLEAROPERATING COMPANY FIRSTENERGY NUCLEARGENERATION. LLC DOCKETNO. 50-440 PERRYNUCLEARPOWER.PLANT.UNITNO. 1 FACILITYOPERATI NG LICENSE LicenseNo. NPF-58
- 1. The NuclearRegulatory Commission (theCommission) hasfoundthat:
A. The applicationfor licensefiled by FirstEnergyNuclearOperatingCompany(FENOC)I actingon its own behalfand as agentfor FirstEnergyNuclearGeneration,LLC (licensees)complieswith the standardsand requirements of the AtomicEnergyAct of 1954,as amended(theAct),and the Commission's regulationssetforthin 10 CFR to otheragenciesor bodieshavebeenduly Chapterl, and all requirednotifications made; B. Constructionof the PerryNuclearPowerPlant,UnitNo. 1 (thefacility),has been substantiallycompletedin conformitywith ConstructionPermitNo. CPPR-148and the application,as amended,the provisionsof the Act, and the regulationsof the Commission; lFENOCis authorized to actas agentforFirstEnergy NuclearGeneration, LLC and has exclusiveresponsibility and controloverthe physicalconstruction,operation,and maintenance of the facility. AmendmentNo. TBD
For Information Only
- c. The facilitywill operatein conformitywiththe application,as amended,the provisionsof the Act, and the regulationsof the Commission(exceptas exemptedfrom compliancein Section2.D below);
D . Thereis reasonableassurance:(i) that the activitiesauthorizedby this operatinglicense can be conductedwithoutendangeringthe healthand safetyof the public,and (ii)that such activitieswill be conductedin compliancewith the Commission'sregulationsset forth in 10 CFR Chapterl (exceptas exemptedfrom compliancein Section2.D below); E . The FirstEnergyNuclearOperatingCompanyis technicallyqualifiedto engagein the activitiesauthorizedby this licensein accordancewith the Commission'sregulationsset forthin 10 CFR Chapterl; F. The licenseeshavesatisfiedthe applicableprovisions of 10 CFR Part 140,"Financial ProtectionRequirements and IndemnityAgreements," of the Commission'sregulations; G . The issuanceof this licensewill not be inimicalto the commondefenseand securityor to the healthand safetyof the public; H . Afterweighingthe environmental, economic,technical,and otherbenefitsof the facility againstenvironmental and othercostsand consideringavailablealternatives, the issuanceof this FacilityOperatingLicenseNo. NPF-58,subjectto the conditionsfor protectionof the environmentset forthin the Environmental ProtectionPlanattachedas AppendixB, is in accordancewith 10 CFR Part51 of the Commission's regulations and all applicablerequirements havebeensatisfied;and
- l. The receipt,possession,and use of source,byproduct,and specialnuclearmaterialas authorizedby this licensewill be in accordancewith the Commission'sregulationsin 10 CFR Parts30, 40, and 70.
- 2. Basedon the foregoingfindingsregardingthis facility,the Partial-lnitialDecisionsissued December2,1983,and September3, 1985,by the AtomicSafetyand LicensingBoardin regardto thisfacility(affirmedbyALAB-U1, datedJuly 25, 1986)and pursuanttoapprovalby the NuclearRegulatory Commission at a meetingon November7,1986,FacilityOperating LicenseNo. NPF-58,whichsupersedesthe licensefor fuel loadingand low powertesting, LicenseNo. NPF-45,issuedon March18, 1986,is herebyissuedto FirstEnergy Nuclear OperatingCompanyand FirstEnergyNuclearGeneration,LLC,(the licensees)to readas follows:
A. The licenseappliesto the PerryNuclearPowerPlant,UnitNo. 1, a boilingwaternuclear reactorand associatedequipment(thefacility),ownedby FirstEnergyNuclear Generation,LLC (owner). AmendmentNo. TBD
For Information Only Thefacilityis locatedontheshoreof LakeEriein LakeCounty,Ohio,approximately 35milesnortheast of Cleveland, Ohio,andis described in thelicensees'FinalSafetyAnalysis Report, as supplemented andamended, andin thelicensees' Environmental Report,assupplemented andamended. B. Subjectto theconditions andrequirements incorporatedherein,theCommission herebylicenses: (1) FENOC, puFuantto Section103of theActand10CFRPart50,to possess, use,andoperate the facilityat thedesignated locationin LakeCounty, Ohio,in accodance withtheprocedurea and limitations settorthin thislicense: (2) FirstEnergy NuclearGeneration, LLCto possessthe facilityat the designated locationin Lake County,Ohio,in accordance withthe procedures and limitationssetforthin thislicense; (3) FENOC,pursuantto theAct and 10 CFRPart70,to receive,possess,and useat anytimespecial nuclearmaterialas reactorfuel,in accordance for storageand amountsrequiredfor withthe limitations reactoroperation, as describedin the FinalSafety Analysis Report, as supplemented and amended; (4) FENOC,pursuantto theAct and 10 CFRParts30,40, and70,to receive,possess,and useat any timeany byproduct, source,andspecialnuclearmaterialsuchas sealedneutronsourcesfor reactor startup,sealedsourcesfor reactorinstrumentation and radiationmonitoring equipment and calibration, fissiondetectorsin amountsas required; (5) FENOC,pursuantto theAct and 10 CFRParts30,40, and70,to receive,possess,and usein amountsas requiredany byproduct, sourceor specialnuclearmaterialwithoutrestriction as to chemicalor physicalform,for sampleanalysisor instrument calibrationor associated withradioactive apparatus or components; and (6) FENOC,pursuantto theAct and 10 CFRParts30,40, and70,to possess,but notseparate,such byproduct andspecialnuclearmaterials as maybe producedby the operation of the facility. (7) Deleted AmendmentNo. TBD
4- For lnformation Only C. This licenseshallbe deemedto containand is subjectto the conditionsspecifiedin the Commission's regulationssetforthin 10 CFR ChapterI and is subjecttoall applicableprovisionsof the Act and to the rules,regulations, and ordersof the Commissionnow or hereafterin effect;and is subjectto the additionalconditions specifiedor incorporatedbelow: (1) MaximumPowerLevel FENOCis authorizedto operatethe facilityat reactorcore powerlevelsnot in excess of 3758 megawattsthermal(100%power)in accordancewith the conditions specifiedherein. (2) Technical Specifications The TechnicalSpecifications containedin AppendixA and the Environmental ProtectionPlancontainedin AppendixB, as revisedthroughAmendmentNo. TBD, are herebyincorporated intothe license. FENOCshalloperatethe facilityin accordancewith the TechnicalSpecifications and the EnvironmentalProtectionPlan. (3) AntitrustConditions
- a. FirstEnergyNuclearGenerationCorp.
Amendment No. TBD
For Information Only shallcomplywith the antitrustconditionsdelineatedin AppendixC to this license;AppendixC is herebyincorporated intothis license.
- b. FENOCshallcomplywith the antitrustconditlonsdelineatedin AppendixC to this license as if namedtherein. FENOCshallnot marketor brokerpoweror energyfromthe Perry NuclearPowerPlant,UnitNo. 1. The Owneris responsible and accountable for the actionsof FENOCto the extentthat said actionsaffectthe marketingor brokeringof poweror energyfromthe PerryNuclearPowerPlant,Unit No. 1, and in any way, contravenethe antitrustconditioncontainedin the license.
(4) Deleted (5) Deleted (6) FireProtection(Section9.5.SER.SSER#1. 2. 3. 4. 7. and 8) FENOCshallcomplywiththe followingrequirements of the fire protectionprogram:FENOCshall implementand maintainin effectall provisionsof the approvedfire protectionprogramas describedin the FinalSafetyAnalysisReport,as amended,for the PerryNuclearPowerPlant and as approvedin the SafetyEvaluationReport(NUREG-0887) datedMay 1982and SupplementNos. 1 through10 thereto,subjectto the followingprovisions:
- a. FENOCmay makechangesto the approvedfire protectionprogramwithoutpriorapproval of the Commissiononly if thosechangeswouldnot adverselyaffectthe abilityto achieve and maintainsafe shutdownin the eventof a fire.
(7) Deleted (8) Deleted (9) Deleted (10) Deleted (11) Mitioation StrateovLicenseCondition The licenseeshalldevelopand maintainstrategiesfor addressinglargefiresand exploslonsand that includethe followkey areas: (a) Firefightingresponsestrategywith the followingelements:
- 1. Predefinedcoordinated fire responsestrategyand guidance
- 2. Assessmentof mutualaid fire fightingassets
- 3. Designatedstagingareasfor equipmentand materials AmendmentNo. TBD
For Information Only H. This licenseis effectiveas of the date of issuanceand shallexpireat midnighton March18, 2026.
- 3. Basedon the Commission's Orderdated ,2016 regardingthe directtransfer fromOhioEdisonCompany(OE)to FirstEnergy NuclearGeneration,LLC (FENGen),FENOC and FENGenshallcomplywith the followingconditionsnotedbelow.
On June 1,2016,OE shalltransferto FENGenthe accumulated decommissioning funds held by OE for Perry. All suchfundsshallbe depositedand held in FENGennuclear decommissioning trustfor Perryalongwith the otherfundsmaintainedby FENGenfor Perryand shallbe maintainedin suchtrustoutsideof FENGen'sadministrative controland in accordance withthe requirements of 10 CFR 50.75(h)(1). B . The SupportAgreementin the amountof $400 millionfrom FirstEnergySolutionsCorp.(FE Solutions)describedin the applicationdatedJune 30,2015shallbe effectiveand consistentwith the representations in the application.FENGenshalltake no actionto void, cancelor modifythe SupportAgreementwithoutthe priorwrittenconsentof the NRC staff. FENGenshallinformthe Directorof the Officeof NuclearReactorRegulation,in writing,no laterthan 10 workingdays afterany fundsare providedto FENGenby FirstEnergy Solutionsunderthe termsof the SupportAgreement. AmendmentNo. TBD
For Information Only C. Deleted FORTHE NUCLEARREGULATORY COMMISSION ORIGINAL SIGNEDBY: HaroldR. Denton,Director Officeof NuclearReactorRegulation Attachments/Append ices
- 1. Attachments 1-2
- 2. AppendixA - TechnicalSpecifications (NUREG-PA4)
- 3. AppendixB - EnvironmentalProtection Plan
- 4. AppendixC - AntitrustConditions Dateof lssuance:November13, 1986 AmendmentNo. TBD
For Information Only APPENDIXC PERRYNUCLEARPOWERPLANT.UNITNO. 1 NPF.58 ANTITRUST CONDITIONS FOR FIRSTENERGY NUCLEARGENEMTION.LLC A. The licensees aresubjectto thefollowingantitrustconditions: Definitions Applicantshallmeanthe companylistedabove. Entitvshallmeananyelecfuic generationand/ordistribution systemor municipality or cooperative witha statutoryrightor privilegeto engagein eitherof thesefunctions. \Mreelinoshallmeantransportation by a utilityoverits linesfor anotherutility,including of electricity the receiptfromanddeliveryto anothersystemof likeamountsbutnotnecessarily thesameenergy.Federal PowerCommission, The1rualigl3lPgggls!rygy, Paft 1, P. 1-24-8. LicensinoConditions (1) Applicantshallnot conditionthe saleor exchangeof wholesalepoweror coordination services uponthe conditionthat any otherentity: (a) enterintoany agreementor understanding restrictingthe use of or alienationof such energyor servicesto any customersor territories; (b) enterinto any agreementor understanding requiringthe receivingentityto, give up any other powersupplyalternativesor to deny itselfany marketopportunities; (c) withdrawany petitionto interveneor foregoparticipation in any proceedingbeforethe NuclearRegulatoryCommissionor refrainfrom instigatingor prosecutingany antitrust actionin any otherforum. AmendmentNo.TBD
Only For Information (2) Applicant,and each of them,shallofferinterconnections uponreasonable termsand conditionsat the requestof any otherelectricentity(ies)in the CombinedCAPCOCompanyTerritories(CCCT),such interconnection to be available(withdue regardfor any necessaryand applicablesafety procedures) for operationin a closed-switch synchronousoperatingmode if requestedby the interconnecting entity(ies).Ownershipof trans-missionlinesand switchingstationsassociatedwith such interconnection shallremainin the handsof the partyfundingthe interconnection subject, however,to any necessarysafetyproceduresrelatingto disconnection facilitiesat the pointof powerdelivery.Suchlimitationson ownership shallbe the leastnecessaryto achievereasonablesafetypracticesand shallnot serveto deprivepurchasingentitiesof a meansto effect additionalpowersupplyoptions. (3) Applicantshallengagein wheelingfor and at the requestof other entitiesin the CCCT: (a) of electricenergyfrom deliverypointsof Applicantto the entity(ies);and, (b) of powergeneratedby or availableto the otherentity,as a resultof its ownershipor entitlements* in generating facilities,to deliverypointsof Applicantdesignatedby the otherentity. Suchwheelingservicesshallbe availablewith respectto any unused capacityon the transmissionlinesof Applicant,the use of whichwill notjeopardizeApplicant'ssystem. ln the eventApplicantmust reduce wheelingservicesto otherentitiesdue to lack of capacity,such reductionshall not be effecteduntil reductionsof at least 5 percent have beenmadein transmissioncapacityallocationsto otherApplicants in theseproceedingsand thereaftershallbe madein proportionto reductions**imposeduponotherApplicantto this proceeding. " "Entitlement" includesbut is not limitedto powermadeavailableto an entitypursuantto an exchangeagreement.
- The objectiveof this requirementis to preventthe pre-emptionof unused capacityon the linesof one Applicantby otherApplicantsor by entitiesthe transmitting Applicantdeemsnoncompetitive.Competitiveentitiesare to be allowedthe opportunityto developbulk powerservicesoptionseven if this resultsin re-allocation of CAPCO(CentralArea PowerCoordination Group) transmissionchannels.This reliefis requiredin orderto avoidprolongation of the effectsof Applicant'sillegallysustaineddominance.
AmendmentNo.TBD
Only For Information Applicantshall makereasonableprovisionsfor disclosedtransmission requirements of otherentitiesin the CCCTin planningfuturetrans-missioneitherindividually or withinthe CAPCOgrouping.By "disclosed" is meantthe givingof reasonableadvancenotificationof futurerequire-mentsby entitiesutilizingwheelingservicesto be madeavailableby Applicant. (4) (a) Applicantshallmakeavailablemembershipin CAPCOto any entity in the CCCTwith a systemcapabilityof 10 Mw or greater; (b) A groupof entitieswith an aggregatesystemcapabilityof 10 Mw or greatermay obtaina singlemembershipin CAPCOon a collective basis;* (c) Entitiesapplyingfor membershipin CAPCOpursuantto License Condition4 shallbecomememberssubjectto the termsand con-ditionsof the CAPCOMemorandumof Understanding of September14, 1967, and its implementing agreements;exceptthat new membersmay elect to participateon an equal percentageof reservebasis rather than a P/N allocationformulafor a periodof twelveyearsfrom date of entrance.**Followingthe twelfthyear of entrance,new members shall be expectedto adhereto suchallocationmethodsas are then employedby CAPCO(subjectto equalopportunityfor waiveror special consideration grantedto originalCAPCOmemberswhichthen are in effect). E.9.,\tVholesale Customerof OhioEdison(WCOE). The selectionof the 12-yearperiodreflectsour determinationthat an adjustmentperiodis necessarysincethe P/N formulahas a recognizedeffect of discriminating againstsmallsystemsand forcingthemto foregoeconomies of scalein generationin orderto avoidcarryingexcessivelevelsof reserves. We alsofoundthe P/N is not entirelyirrationalas a methodof reserveallo-cation. We haveobservedthat Applicantsthemselvesprovidedadjustment periodsand waiversto integratecertainApplicantsintothe CAPCOreserve requirementprogram.The 12-yearperiodshouldpermitnew entrantsto avoid initialdiscriminationbut to accommodateand adjustto the CAPCOsystemover some reasonableperiodof time. Presumablynew entrantswill be acquiring ownershipsharesand entitlementsduringthe 12-yearperiodso that adverse consequences of applyingthe P/N formulawill be mitigated. AmendmentNo.TBD
4- For Information Only (d) New membersjoiningCAPCOpursuantto this provisionof relief shallnot be entitledto exercisevotingrightsuntilsuchtime as the systemcapabilityof the joiningmemberequalsor exceeds the systemcapabilityof the smallestmemberof CAPCOwhichenjoys votingrights.* (5) Applicantshallsell maintenancepowerto requestingentitiesin the CCCTupontermsand conditionsno lessfavorablethanthoseApplicants makeavailable:(a) to eachothereitherpursuantto the CAPCOagree-mentsor pursuantto bilateralcontract;or (b) to non-Applicant entities outsidethe CCCT. (6) Applicantshallsell emergencypowerto requestingentitiesin the CCCT upontermsand conditionsno lessfavorablethan thoseApplicantsmake available:(a) to eachothereitherpursuantto the CAPCOagreementsor pursuantto bilateralcontract;or (b) to non-Applicant entitiesoutside the CCCT. (7) Applicantshallsell economyenergyto requestingentitiesin the CCCT, when available,on termsand conditionsno lessfavorablethan those available:(a) to each othereitherpursuantto the CAPCOagreementsor pursuantto bilateralcontract;or (b) to non-Applicant entitiesoutside the CCCT. (8) Applicantshallsharereserveswith any interconnected generationentity in the CCCTuponrequest.The requestingentityshallhavethe optionof sharingreserveson an equalpercentagebasisor by use of the CAPCOP/N allocation formulaor on any othermutuallyagreeablebasis. (e) (a) Applicantshallmakeavailableto entitiesin the CCCTaccessto the Davis-Besse1, 2 and3 and the Perry 1 and 2 nuclearunitsand any othernuclearunitsfor whichApplicantor any of them,shall applyfor a constructionpermitor operatinglicenseduringthe
- Our objectiveis to preventimpediments to the operationand developmentof an area-widepowerpoolthroughthe inabilityof lesserentitiesto respond timelyor to makenecessaryplanningcommitments.\Mile we grantnew member entitiesthe opportunitvto participatein CAPCOit is not our intentto relievejoiningentitiesof responsibilitiesand obligationsnecessaryto the successfuloperationof the pool. For thosesmallerentitieswhichdo not wish to assumethe broadrangeof obligationsassociatedwith CAPCOmember-ship we haveprovidedfor accessto bulk powerserviceoptionswhichwill furthertheirabilityto surviveand offercompetltionin the CCCT.
AmendmentNo. TBD
For Information Only next25 years. Suchaccess,at the optionof the requesting enti$, shallbe on an ownershipshare,or unit participation or contractualpre-purchase of powerbasis.* Eachrequesting entity(or collectivegroupof entities)may obtainup to 10o/o of the capacityof the Davis-Besseand Perry Units and 20o/oof future units (subjectto the Z5-yearlimitation)exceptthat onceany entityor entitieshavecontractedfor allocations totaling10%or 20o/o, respectively, no furtherparticipationin any given units need be offered. (b) Commitments for the Davis-Besse and PerryUnitsmust be madeby requestingentitieswithintwo yearsafterthis decisionbecomes final. Commitments for futureunitsmustbe madewithintwo years aftera construction permit applicationis filedwith respectto such a unit (subjectto the Z5-yearlimitation)or withintwo years afterthe receiptby a requestingentityof detailedwriftennotice of Applicant'splansto constructthe unit,whicheveris earlier; provided,however,that the timefor makingthe commitmentshall not expireuntilat leastthreemonthsafterthe filingof the applicationfor a constructionpermit. \Mrerean Applicantseeksto operatea nuclearplantwith respectto whichit did not havean interestat the time of filingthe applicationfor the construction permit,the time periodsfor commitmentsshallbe the sameexcept that referenceshouldbe to the operatinglicense,not the construction permit. (10) Applicantshallsellwholesalepowerto any requestingentityin the CCCT,in amountsneededto meetall or partof such entity'srequirements. The choiceas to whetherthe agreementshouldcoverall or part of the entity'srequirements shouldbe madeby the entity,not the Applicantor Applicants.
- Requestingentities'electionas to the type of accessmay be affectedby provisionsof Statelaw relatingto dualownershipof generationfacilitiesby municipalities and investor-owned utilities.Suchlaws may changeduringthe periodof applicabilityof theseconditions.Accordingly, we allowrequesting entitiesto be guidedby relevantlegaland financialconsiderations (including Commission regulations on nuclearpowerplantownership) in fashioningtheir requests.
AmendmentNo.TBD
For Information Only ( 11 ) Theseconditionsare intendedas minimumconditionsand do not precludeApplicantfrom offeringadditionalwholesalepoweror coordinationservicesto entitieswithinor withoutthe CCCT. However,Applicantshallnot denywholesalepoweror coordination servicesrequiredby theseconditionsto non-Applicant entitiesin the CCCT basedupon priorcommitmentsarrivedat in the CAPCOMemo-randumof Understanding or implementing agreements.Suchdenialshall be regardedas inconsistent with the purposeand intentof thesecon-ditions. The aboveconditionsare to be implementedin a mannerconsistent with the provisionsof the FederalPowerAct and all rates,charges or practicesin connectiontherewithare to be subjectto the approval of regulatoryagencieshavingjurisdictionoverthem. AmendmentNo.TBD
ExhibitB Page1 EXHIBIT B NO SIGNIFICANT HAZARDS CONSIDERATION DETERMINATION The proposedchangesto the license are administrative in nature. The proposedchangesdelete the referencesin the licenseto the Transferor and changethem to FirstEnergyNuclear Generation,LLC (FENGen). In its regulations,at 10 CFR 2.1315,the Nuclear RegulatoryCommission(NRC) hasmadea generic determination regarding no significant hazardsconsideration(NSHC) determinations required by 10 CFR 50.92. The determination is applicable to license amendmentsinvolving licensetransfers. In brief, the rule statesthat the NRC has determinedthat an amendmentto the license of a utilizationfacility that doesno more than conform the license to reflectthe transfer action involves NSHC. The proposedchangescontainedin this license amendmentapplication are intended solely to conform the PNPP Operating License to reflect the changein ownership as a result of the licensetransfersand thus meet the criteria specifiedby 10 CFR 2.1315.
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ExhibitE Page1 EXHIBIT E GeneralCorporateInformation RegardingFENGenand lts ParentCompanies NAME: FirstEnergyCorp. STATE OF Ohio INCORPORATION: BUSINESSADDRESS: 76 South Main Street Akron, OH 44308 PaulT. Addison DIRECTORS: MichaelJ. Anderson William T. Cottle RobertB. Heisler,Jr. JuliaL. Johnson CharlesE. Jones Ted.J. Kleisner DonaldT. Misheff ErnestJ. Novak,Jr. ChristopherD. Pappas Luis A. Reyes GeorgeM. Smart JerrySueThornton CharlesE. Jones,Presidentand Chief ExecutiveOfficer EXECUTIVE (cEo) PERSONNEL JamesF. Pearson, andChief SeniorVice President FinancialOffrcer(CFO) Marketsand LeilaL. Vespoli,ExecutiveVice President, ChiefLegalOfficer RhondaS. Ferguson,Vice PresidentandCorporate Secretary StevenR. Staub,Vice PresidentandTreasurer K. JonTaylor,Vice President,ControllerandChief AccountineOfficer
ExhibitE Page2 NAME: FirstEnergySolutionsCorp. STATE OF Ohio INCORPORATION: BUSINESSADDRESS: 341WhitePondDrive Akron. OH 44320 CharlesE. Jones DIRECTORS: JamesH. Lash JamesF. Pearson Donald R. Schneider,President EXECUTIVE Leila L. Vespoli, ExecutiveVice President,Markets and PERSONNEL: Chief Legal Officer JamesF. Pearson,SeniorVice Presidentand CFO Rhonda S. Ferguson,Vice Presidentand Corporate Secretary JamesG. Garanich,Vice President,Tax JamesG. Mellody, Vice President,Fuel and Unit Dispatch Donald A. Moul, Vice President,Commodity Operations Trent A. Smith, Vice President,Salesand Marketing Robert P. Reffner, Vice Presidentand General Counsel StevenR. Staub,Vice Presidentand Treasurer K. Jon Taylor, Vice Presidentand Controller Kevin T. Warvell, Vice President,Commercial Operations,Structuring and Pricing
ExhibitE Page3 NAME: FirstEnergyNuclearGeneration,LLC STATE OF Ohio INCORPORATION: BUSINESSADDRESS: 76 SouthMain Street Akron. OH 44308 SamuelL. Belcher DIRECTORS: CharlesE. Jones JamesH. Lash SamuelL. Belcher, Presidentand Chief Nuclear Officer EXECUTIVE Leila L. Vespoli, ExecutiveVice President,Markets and PERSONNEL Chief Legal Officer Paul A. Harden, Senior Vice Presidentand Chief Operating Officer RaymondA. Lieb, SeniorVice President,Fleet Engineering JamesF. Pearson,SeniorVice Presidentand CFO Mark B. Bezilla, Vice President,Fleet Oversight GeorgeJ. Farah,Vice President,GenerationProjects Rhonda S. Ferguson,Vice Presidentand Corporate Secretary JamesG. Garanich,Vice President,Tax Robert P. Reffrrer, Vice Presidentand General Counsel StevenR. Staub,Vice Presidentand Treasurer K. Jon Taylor, Vice Presidentand Controller
ExhibitF Page1 FORM OF SUPPORTAGRBEMENT BETWEEN FIRSTENERGYSOLUTIONS CORP.AND FIRSTENERGYNUCLEAR GENERATION, LLC THts Supponr AcneBvENT. dated as of , 2015betweenFirstEnergy Solutions Corp., an Ohio corporation ("Parent"), and FirstEnergyNuclear Generation LLC an Ohio limited liability company ("Subsidiary"), WITNESSETH: WHpnEns, Parent is the direct owner of 100Yoof the outstanding interests in the Subsidiary; WHeRnAS,the Subsidiaryowns certain assets located at the Beaver Valley NuclearPowerStation,Units Nos. l & 2, PerryNuclear Power Plant, Unit No. 1, and Davis-Besse NuclearPower Station.Unit No. I ("BVPS ," ooPerry"and Davis-Besse"); and WupnEes, Parent and the Subsidiary desire to take certain actions to assurethe Subsidiary's ability to pay the pro rata expensesof operating BVPS, Perry and Davis-Besse safely and protecting the public health and safety (the "Operating Expenses") and to meet Nuclear Regulatory Commission ("NRC") requirementsduring the operating life of the BVPS, Perr),and Davis-Besseunits (the "NRC Requirements"). Now, THenepoRE,in consideration of the mutual promises herein contained, the parties hereto agreeas follows:
- 1. Availability of Funding. From time to time, uponrequestof Subsidiary, Parentshall provide or causeto be providedto Subsidiarysuchfunds as the Subsidiarydeterminesto be necessary to pay OperatingExpensesand meetNRC Requirements; provided,however,in any eventthe aggregate amountwhich Parentis obligatedto provide underthis Agreementshall not exceed$400million.
- 2. No Guarantee. This Support Agreement is not, and nothing herein contained, and no action taken pursuant hereto by Parent shall be construed as, or deemed to constitute, a direct or indirect guaranteeby Parent to any person of the payment of the Operating Expensesor of any liability or obligation of any kind or character whatsoever of the
ExhibitF Page2 Subsidiary.This Agreementmay,however,be relieduponby the NRC in determiningthe financial qualificationsof the Subsidiaryto hold the operatinglicensesfor BVPS,Perry,andDavis-Besse.
- 3. I4/aivers. Parentherebywaives any failure or delay on the part of the Subsidiaryin assertingor enforcingany of its rights or in making any claimsor demandshereunder.
- 4. Amendmentsand Termination. This Agreement may not be amended or modified at any time without 30 days prior written notice to the NRC. This Agreement shall terminate at such time as Parent is no longer the direct or indirect owner of any of the shares or other ownership interests in Subsidiary. This Agreement shall also terminate with respect to the Operating Expenses and NRC Requirements applicable to BVPS, Perry, and Davis-Besse at such time as BVPS, Perry, and Davis-Besse pelmanently ceasecornmercial operations.
- 5. Successors. This Agreement shall be binding upon the parties hereto and their respectivesuccessorsand assigns.
- 6. Third Parties. Except as expressly provided in Sections 2 and 4 with respectto the NRC, this Agreement is not intended for the benefit of any person other than the parties hereto, rilrd shall not confer or be deemedto confer upon any other such person any benefits, rights, or remedies hereunder.
- 7. Other Support Agreement. This Agreement supercedesany other Support Agreement, if any exists prior to the date hereof, between Parent and Subsidiary to provide funding when necessaryto pay Operating Expenses and meet NRC Requirements for BVPS, Perry or Davis-Besse, and any such other Support Agreement is hereby voided, revoked and rescinded.
As such, the total available funding provided for in this Agreement shall be limited as set forth in Section t herein and shall not be cumulative with any other Support Agreement.
- 8. Governing Law. This Agreement shall be governed by the laws of the Stateof Ohio.
ExhibitF Page3 IN Wtrxpss WHEREoF,the parties hereto have caused this Agreement to be executedand delivered by their respectiveofficers thereunto duly authorizedas of the day and year first above written. FirstEnergy SolutionsCorp. By:
ExhibitG Page1 EXHIBITG (Non-Proprietary Vercion)(t) FirstEnergyNuclearGeneration,LLG Pro FormalncomeStatements ($ in millions) 2016 2017 OperatingRevenues OperatingExpenses: Fuel Purchased Power O&MExpenses GeneralTaxes Depreciation rr rl rl tl Total OperatingExpenses OperatingIncome OtherIncome/(Expenses) : Investment Income InterestExpense AFUDC2 rl rl rl Il t] Total OtherExpense,net I1 I1 I1 Ilt I IncomeBeforeIncomeTaxes t1 t1 t1 ttl I IncomeTaxes rl rl rl tl t I Net Income 11 rl tl t] tI Note: (1) Information contained withinthe brackets[ ] is considered proprietary. (2)AFUDC= Allowance for FundsUsedDuringConstruction
Enclosure B L-15-195 Affidavit (2 pagesfollow)
r0 cFR 2.390 AFFIDAVIT OF PAUL A. HARDEN I, Paul A. Harden, Senior Vice Presidentand Chief Operating Officer statethat: I. I am authorizedto executethis affrdavit on behalf of FirstEnergyNuclear Operating Company (FENOC) and its affiliates.
- 2. FENOCis providinginformationin supportof its "Applicationfor Order Consentingto Transferof LicenseandApprovingConformingLicenseAmendments."
TheProprietaryVersionof Exhibit G beingprovidedin the enclosureto this submittal containsfinancialpro forma statements relatedto anticipatedrevenuesfrom salesof energyandcapacityfrom Perr)'NuclearPowerPlant(PNPP)andconfidentialinformation regardinganticipatedassets,liabilitiesandcapitalstructureat the time of transfer.These documentsconstituteproprietarycommercialandfinancialinformationthat shouldbe held in confidenceby the NuclearRegulatoryCommission(NRC) pursuantto the policy reflectedin 10 CFR2.390(a)(a) andl0 CFR9.17(d@),because:
- a. This information is and has been held in confidencebv FENOC and its affiliates.
- b. This information is of a type that is held in confidenceby FENOC and its affiliates, ffid there is a rational basis for doing so becausethe information contains sensitive financial competitive information concerning FENOC's affiliates' anticipated revenuesand operating expenses.
This information is being transmitted to the NRC in confidence.
- d. This information is not available in public sourcesand could not be gathered readily from other publicly available information.
Public disclosure of this information would createsubstantialharm to the competitiveposition of FENOC by disclosingits internal financialproforma statements and the cornmercial terms of a unique transactionto other parties whose commercial interestsmay be adverseto those of FENOC.
- 3. Accordingly,FENOCrequeststhatthe designated documentsbe withheldfrom publicdisclosure pursuanttothepolicyreflectedin 10CFR2.390(a)(a) and r0 cFRe.r7($$).
FirstEnergy Nuclear Operating PaulA. Harden SeniorVice PresidentandChief OperatingOfficer srArEoF (0ft)4 crryoe fu Subscribedand sworn to me, a Notary Public, in and for the County and State abovenamed,thisb daYof 9492015' U r)- - My CommissionExpires:/ z-A '-lq ffiS.Fhttl t{oEYRilc'$hhdffi MyComr*cm EPiEst2{B'2t}19}}