ML15236A015

Licensee Guarantee of Payment of Deferred Premium, 2015 Annual 10 CFR 140.21 Filing

ML15236A015
Person / Time
Site:	Palo Verde
Issue date:	08/19/2015
From:	Weber T Arizona Public Service Co
To:	Document Control Desk, Office of Nuclear Reactor Regulation
References
102-07102-TNW/TMJ
Download: ML15236A015 (35)

Text

10 CFR 140.21 aps Palo Verde Nuclear Generating Station P0 Box 52034 Phoenix, Arizona 85072-2034 102-07 102-TN W/TMJ August 19, 2015 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 2015 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 2015 Annual Premium Endorsement evidencing payment for such bonds. The enclosed endorsements are summarized below:

Secondary Endorsement Financial Licensee Plant Prtcin Number and Certificate # Purpose

• Arizona Public Service Company Palo Verde N - 0088 2015 Annual

• Salt River Project Agricultural Nuclear Premium Improvement and Power District Generating Endorsement #52

• Public Service Company of New Stto nt1ANT 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 2015 Annual

• SlRirPrjcAgiutrl Nuclear Premium atRvrrjcg D isuturict Generating Endorsement #53 Improvement and Power DititStation Unit 2

• Public Service Company of New ANT 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 off the STA.RS (Strategic Teaming and Resource Sharing) Alliance Callaway ,Diablo Canyon

• Palo Verde - Wolf Creek

102-07102 - TNW/TMJ ATT-N: Document Control Desk U. S. Nuclear Regulatory Commission Licensee Guarantee of Payment of Deferred Premium 2015 Annual 10 CFR 140.21 Filing Page 2 Secondary Endorsement Financial Licensee Plant Number and Protection Purpose Certificate #

• Arizona Public Service Company Palo Verde N-0114 2015 Annual

• Salt River Project Agricultural Nuclear Premium Improvement and Power District Generating Endorsement #48

• 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 Southern to the NRCCalifornia Edisonletter in a separate submitted its guarantee dated June 2, 2015. of paYment of deferred premium 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/af

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 M. M. Watford NRC Region IV Regional NRR Project ManagerAdministrator for PVNGS C. A. Peabody NRC Senior Resident Inspector for PVNGS

ENCLOSURE:

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

Enclosure Contents Unit 1:2015 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: 2015 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: 2015 Annual Premium Endorsement (No. N-114)

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

NUCLEAR ENERGY LIABILITY INSURANCE NUCLEAR ENERGY LIABILITY INSURANCE ASSOCIATION ANNUAL PREMIUM ENDORSEME~NT CALENDAR YEAR. 2015

1. ANNUAL PREMIUM: It is agreed that the Annual Premnium due the companies for the period designated above is: $19,175.00 Effective Date of this Endorsement: January 1, 2015 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: October 29, 2014 For the subscribing companies

• / d" President Countersigned by_ ,._ .* ,_.'

Endorsement No: 52

f 1/4~t~

NUCLEAR ENERGY LIABILITY INSURANCE ASSOCIATION THIS IS TO CERTIFY THAT THIS IS A TRUE COPY OF THE ORIGINAL CERTIFICATE. BEARING THE NUMBER DESIGNATED HEREON, FOR INSURANCE COVERAGE UNDER ThE MASTER{ }LUCY - NUCLEAR ENERGY IARILIT, INSURANCE (SEODR 1AI POETO) OCerti ficate No. N- 88

-- *' .*Forming

• -IT;R*'eH Part of Master JOHN L. TRCH VICE PRESIDENT-LIABILITY UNDERWRITING PoIic o AMERICAN NUCLEAR INSURERSP1icNo 1 CERTIFICATE OF INSURANCE DECLARATIONS AND BOND FOR PAYMENT OF RETROSPECTIVE PREMIUMS Certificate of Insurance This is to certify that the persons and organizations designated in Item 1 of the Declarations are named insureds under the Master Policy -

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

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

(a) to the insureds identified in Items 1 and 2 of the Declarations, (b) for the certificate period stated in Item 6 of the Declarations, (c) to bodily injury or property damage (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 N*¢rI fl /l lq* PainP 1

h (3) which is discovered and for which written claim is made against the in~sured 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 Ce) Public Service Company of New Mexico-Alvarado Square, Albuquerque, New Mexi co 871 58 (f) Southern California Public Power Authority-c/o Los Angeles Department of Water & Power, 111 North Hope Street, Los Angeles, California 90012 Page 2 of Certificate No. N- 88

Item 2. Additional insu~reds:

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) The foliowing endorseiiierts, aLtached to the prima ry financiafl rotection 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) .Uaiver 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.

Pacie 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 Nio. N-88

The preceding Certi ficate of Insuranice, [eclarations and IBond 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 po1licy or the B;ond 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 Comp~any (Named Insured - Type or Print)

PateL nl &Wle gnature of Offi ep)

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

Date: * **

Partner, snelf{& Wilmer Sal t River Project Agricultural Improvement and Power District (Named. I-s~uced - Type or Print)

(-signatur/of Officer)

R. D. Johnson, Manager, Generation Dept.

(Type or Print N~ame & Title of Officer)

Date: ~'&~

Partner, Snel i& Wilmer I /

ElPasoElectricCompany_____

(Named Insured - Type or Print)

( S i na ture~(SEAL)'

R. E. york., Senior Vice President (Type or Print Name & Title of Offider)

Date: __/& g3 Pane; 6 nf Cert.ificate rJn.r.J- 88

" .'s

• f .

• Attest or Witness Named Insureds:

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

Partner, Snell Wilmaer (Signature of Officer)

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

Date: *//s// .?'*

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

~~-1 7

By -**,. t~* (SEAL)

Partner, Snel]ij'& Whiner (Signature of,,.fficer)

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

Date: */ **

Southern California Public Power Authority (Named Insured - Type or Print)

• N~

~ (Sign ture of Officer)

(Type or Pri~nt Name & 4 itle of Officer)

Date: G i'*

(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 caused the Certificate of Insurancesubscribing the Master Policy have 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 authn~rized representative.

Attest or Witness For the Subscribing Companies of NUCLEAR ENERGY LIABILITY INSURANCE ASSOCIATION Coutesigedby Countrsignd *.9..2,_/._

fA~uthorized Representa'ti ve),/'*

Page 8 of Certificate No. N- 88

Nuclear Energy Liability Insurance NUcLrk... ENERGY LIABILITY INSURANCE AS. ;IATION DO*SE)A* TO CE*IFICAT NO. N-88 FORMING PART OF MASTER POLICY NO. 1 NUCLEAR *TERGY LIABIILTY INSURANCE (SEZCINDARY FINANCIAL PRarB'DC O)

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:

BWND FOR PAYMENT OF RETIROSP*CTlVE PRENIUMS Know All Men By These Presents, that the undersigned does hereby acknowledge that Arizona Public Service Comlpany and the undersigned are named insureds under Master Policy No. 1 described in the Certificate of Insurance and Declarations of Certificate No. N-B88, which was issued to and signed by Arizona Public Service. Cculpany 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 memibers of Nuclear Energy Liability Insurance Association (hereinafter called the "~companies") to pay to the comipanies 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 coxnputed at the rate provided in Master Policy No. 1 from the date payment thereof is specified to be due the ccrwpanies 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 comnpanies 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

in enforcing Bondororany(2)provisions any covenantsor and of thethecovenants with provisions provisions of ofthisthis Bond, 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 ABO'V.E BOND FORMS A PART OF MASTE POLICY NO. 1. CANCELAION~ OR TERINATION OF MASTER POLICY NO. 1 OR CERPIFICATE NO. N-88 SHArL NOT' AFFECT THE OBLIGATION~S OF THE NAMED INSUREDS UNDER MASTER POLICY NO. 1 OF THE BON~DS TO PAY THE RETROSPEC~TIVE PPJ*IUMS AND AL*ACES FOR PREMYIUM TAXES AS PROV.IDED IN CERPIFICATE NO. N-88 AND CONDITION 2 OF MASTER POLICY NO. 1.

IN WITENESS WHEREOF, the undersigned named insured has caused this Bond for Payment of R~etrospective 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)

(SEAL)

°(Signature of Officer)

NO1RV1AN E. NICHOLS - ASS ISTANT GENERAL MANAGER - PCOWER (Type or Print Name & Title of Officer)

Date: 2qj49

()

Effective Date oi tJanuary 30. 1986 Certificate No.

this Endorsemen To form a part of N-88 12:01 A.M. Standard Time Issued to Ar:Lzona Public Service Company, et al.

Date of Issue June 24, 1986 E n d orsem ent N o _ 5__ _

NUCLEAR ENERGY LIABILITY INSURANCE NUCLEAR ENERGY LIABILITY INSURANCE ASSOCIATION ANNAL PREMIUM ENDORSEMENT CALENDAR YEAR 2015

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, 2015 To form a part of Certificate No. N -0107 (12:01 AKM. Standard Time)

Issued To: Arizona Public Service Company, et al Date of Issue: October 29, 2014 For the subscribing companies President Countersigned by

• J zjj*

Endorsement No: 53

NUCLEAR ENERGY LIABILITY INSURANCE ASSOCIATION THISI ISto GIERTI'Y THAT" .... A Vi'Ui7 Cn.SY *P THE i1.11INAL H ,S4*FOR.

t'JI*PT.IHATE, BEARI¶NG l'IF." {.Iii*.?-';-TF D[*~Ni°hI !>. -*f Ji~~f~;~14f P * ..... -*,<

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• HR(Y Certi ficate No. N- 107

, ..... :)*'i-IN'>l**iOEi,. *r .Fanning Part of Master ViGE pIE*SI'I"LAf~r u'J1)RWRITING Pol icy No. 1 AMERICAN NUCLeAr1 f~iU:tREER.,  ;

CERTIFICATE OF INSURANCE DECLARATIONS AND BOND FOR PAYMENT OF RETROSPEC.TIVE 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 Liabil~ity 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 certif~icate, only:

(a) to the insureds identified in Items l 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 liaibility 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

• ' r, (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 1njuiry or property damage which is discovered and for which written claim is made against the insured not later than twenty years after the date of the extraordinary nuclear occurrence.

Declarations

• Item 1. Named insureds and'addresses:

(a) Arizona Public Service Company-P.O. Box 21666, Phoenix, Arizona 85036 (b) Salt River Project Agricultural Improvement and Power District-P.O. Box 1980, Phoenix, Arizona 85001 (c) El Paso Electric Company-P.O. Box 982, El Paso, Texas 79946 (d) Southern California Edison Company-P.O. Box 800, Rose Mead, California 91770 (e) Public Service Company of New Mexico-Alvardo Square, Alburquerque, New Mexico 87158 if) Southern California Public Power Authority-d/o Los Angeles Department of Water & Power, 111 North Hope Street, Los Angeles, California 90012 Page 2 of Certificate No. N- 107

Item 2.. Additional insureds:

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

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

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

Nuclear Energy Liability Insurance Association's Policy NF- 266 $124,0@0,000o 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-__]_O_7

(b) The following endorsements, attached to the primary financial p~rotection 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 Defe~nses 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 1 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.

Paq'e 5 of Certificate No. 107

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

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

Attest or Witness Named Insureds:

Arizona Public Service Company (Named Insured - Tyepr-iyint)

Associate ecretary (Signature of Officer) k 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

/*ameds I(red- y or Print)

( nature of Officer)

JONR. LASE pRE*S¶DRI (Type or Print Name & Title of Officer)

El Paso Electric Company (Named Insured - Type or Print) cJifZ2 f~2e~

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

Date: 11-15-85 Paiei__of Certificate No.IJO___

Attest or WitnessNadInues Named Insureds:

Southern California Edison Company (Named Insured - Type or Print) dLA By kc-k 4 ~ (EL (Signature of )ffic'~r)'

I~A&kJ N. (~kXA~'c.

D%~vi d..J. Fogzaty, Executive. Vice President (Type or Print Name & Title of Officer)

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

Assistant Secretary L.tWilkinsfSenior Vice President (Type or Print Name & Title of Officer)

Date: 11-1-85 S*outhern California Public Power Authority (Named Insured -. Type or Print)

By

• L*

--- .s,(SEAL)

Assistant Secretary (Signature of Off m~)

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-i___07

the ofcompanies subscribing the Master Policy *iave IN caused the WHEREOF, WITNESS Certificate 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 Burti~C. Proom, President Countersigned by,* ,* "

Author~,d 7117-,t

?resenta i' )

Page .8 of Certificate No..N- 107

Nuclear Energy LIabllity Insurance NUCLE*.r ENERGY LIABILITY INSURANCE AS* . ,.IATION ENDORS*4ENT TO CERTIFICATE NO. N-107 FORMING PART OF MASTER POLICY NO. 1 NUCLEAR ENRG LIABIILTY INSURA~NCE (SBQONDARY FINANCIAL PROTEtTIONT)

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:

BCTND FOR PAYMENT OF RETROSP*"TIVE PREM4IUMS Know All. Men By These Presents, that the undersigned does hereby acknowledge that Arizona Public Service. Comipany 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 Ccipny 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 com~panies 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 prenmiums and allowances for taxes to be comnputed at the rate provided in Master Policy No. 1 fraD the date payment thereof is specified to be due the. ccmpanies 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 premium~s 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 remounts.

And it is further expressly agreed that the named insureds will indemnify the comipanies 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 caompanies 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.

THlE ABOVE BCXND FOIRMS A PART OF MASTER POLICY NO. 1. CANCEIZATION OR TERMINATION OF MASTER POLICY NO. 1 OR CERTIFIC2LTE NO. N-10 7 SHALL NOT AFFECT THlE OBLIGATIONS OF THE NAMED INSUREDS UNDER MASTER POLICY NO. 1 OF THE BONDS TO PAY THE RE~TROSPBi~fIVE PREM'IUMS AND ALCACES FOR PRE7AIUM TAXES AS PROVIDED IN CERTIFICATE NO. N-i107 AND CCNDITION 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 frcan 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)

(Signature of Officer)

NRINE. NI(IOLS - ASS ISTANTI GENERAL MN*AGER - POWAER (Type or Print Name & Title of Officer)

Date: c3AL6W21 ~ iA~kt~

U Effective this Date of Endorsement January 30, 1986 "1 Certificate No.

To form a part of*$*[*Zb N-107 12:01 A.M. Standard Time Issued to Arizona Public Service Company, et al.

Date of Issue June 24, 1986 f-ndor'senment No

NUCLEAR ENERGY LIABILITY INSURANCE NUCLEAR ENERGY LIABILITY INSURANCE ASSOCIATION, ANNUAL PREMIUM ENDORSEMENT CALENDAR YEAR 2015

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, 2015 To form a part of Certificate No. N -0114 (12:0 1A.M. Standard Time)

Issued To: Arizona Public Service Company, et al Date of Issue: October 29, 2014 For the subscribing companies President Countersigned by h.Gz_!r Endorsement No: 48

NUCLEAR ENERGY LIABILITY INSURANCE ASSOCIATION THIS ISTO CERTIFY THAT THIS ISA TRUE COPY OF THE OR!GINAL CERTIFICATE, BEARING THE NUMBER DESIGNATEtD HEREON. FOg INSURANCE COVERAGE UNDER THE MASTER POLICY -NUCLEAR ENERGy Ce rt ificate No. N- 114 LIABILITY INSURANCE (SEC(*NDARY FINANCIAL PROTECTION). N.

,NSUANCISAFORDO

• SCOY.,* *)'*._ *Forming Part of Master JOHN'~L. OIUATTROCCHI' " '* -

VICE PRF.StDENT-LIABILlTY URDERWRTINGv- Pol icy No. 1 AMERICAN NUCLEAR INSURER$ .,.",'

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 theMaster Policy applies, through this certificate, only:

(a) to the insureds identified in Items 1 and 2 of the Declarat;~ 'S, (b) for the certificate period stated in Item 6 of the Declarations, (c:) to bodily injury or property damaae (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 certifi~ca.te 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*t*'r,_ "T ft t'v tp,'*

(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.

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 79960 (d) Southern California Edison* Company-P.O. Box 800, Rosemead, California 91770 Ce) Public Service Company of New Mexico-Alvarado Square, Alburquerque, New Mexico 87158 (f) Southern California Public Power Authority Association-ill 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:

SAny 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 primary financial.

protection specified in Item 4 (a) above are not shared with any other reactor except as follows:

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

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

Item 6. Certificate Period: Beginning at the same time and date that the Facility Operating License'issued by the United States Nuclear Regulatory Commission for the reactor described in Item 3 of this certificate becomes effective and continuing to the effective dIate 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 premnium 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 ef~fective date of this certificate to the end of the calendar year during which such effective date occurs.

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

Page 5 of Certificate No. 114

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

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

Attest or Witness Named Insureds:

Arizona Public Service Company (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 and Power District Sk*'PISAi,*y

( gnature of Officer)

(Type or Print Name & Title of Officer)

Date: *n_%o

• I/4*7 El Paso Electric Company (Named lnsur I-jYpe or ~int)

By(SEAL) .....

~of Officer)

(Type or Print Name & Title of Officer)

Date: /fltA:J* £7/9R7 PaqeLof Certificate No.N- 1 l 4

Attest or Witness Named Insureds:

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

(Signature of *ffice~l,,*

MO~A~'i Secretary David J. Fogarty I' 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)

(Signature of 0i e)

Assistant Sacro~ar1(

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

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

/. (Signature of Officer)

(Type or Print Name & Title of Officer)

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

Asst. Chief Engineer-Power (Signature of Officer)*

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

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

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

Attest or Witness For the Subscribing Companies of NUCLEAR ENERGY LIABILITY INSURANCE ASSOCIATION BY: .'°:

Burt C. Proom, President Countersigned by Page 8 of Certificate No. N- 114