ML17306B363

Advises That Rept CEN-419(V)-P Marked as Proprietary Will Be Withheld from Public Disclosure Per 10CFR2.790 as Requested in Util & Affidavit

ML17306B363
Person / Time
Site:	Palo Verde
Issue date:	03/23/1993
From:	Trammell C Office of Nuclear Reactor Regulation
To:	Conway W ARIZONA PUBLIC SERVICE CO. (FORMERLY ARIZONA NUCLEAR
References
NUDOCS 9303260246
Download: ML17306B363 (9)

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UNITED STATES NUCLEAR REGULATORY COMMISSION WASHINGTON, D.C. 20555-0001 March 23, 1993 Docket No. 50-528 Mr. William F.

Conway Executive Vice President, Nuclear Arizona Public Service Company Post Office Box 53999

Phoenix, Arizona 85072-3999

SUBJECT:

REQUEST FOR WITHHOLDING INFORMATION FROM PUBLIC DISCLOSURE PALO VERDE NUCLEAR GENERATING STATION UNIT 1

By your letter dated January 25,

1993, and an affidavit dated July 29,

1992, signed by S.

A. Toelle of Combustion Engineering, Inc., you have requested that the following proprietary document be withheld from public disclosure pursuant to 10 CFR 2.790:

"Palo Verde Nuclear Generating Station Unit 1 End-of-Cycle 3 Fuel Examination Report,"

CEN-419(V)-P dated July 31, 1992 Also enclosed is a nonproprietary copy of "Palo Verde Nuclear Generating Station - Unit 1 End-of-Cycle 3 Fuel Examination Report,"

CEN-419(V)-NP dated July 31, 1992.

The Combustion Engineering affidavit forwarded with the proprietary document stated that the submitted information should be considered exempt from mandatory public disclosure for the following reasons:

1.

The information sought to be withheld from public disclosure, which is owned and had been held in confidence by Combustion Engineering, is the result of fuel examinations to characterize rod and assembly growth conducted during the end-of-cycle 3 refueling outage at Palo Verde Unit 1.

2.

The information consists of test data or other similar data concerning a process, method or component, the application of which results in substantial competitive advantage to Combustion Engineering.

3.

The information is of a type customarily held in confidence by Combustion Engineering and not customarily disclosed to the public.

Combustion Engineering has a rational basis for determining the types of information customarily held in confidence by it and, in that connection, utilizes a system to determine when and whether to hold certain types of information in confidence.

The details of the aforementioned system were provided to the Nuclear Regulatory Commission via letter DP-537 from F.

M. Stern to Frank Schroeder dated'ecember 2,

1974.

This system was applied in determining that 9303260246 )930323,, U PDR ADQCK 05000528; P

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Hr. William F.

Conway the subject document herein is proprietary.

4.

The information is.being transmitted to the Commission in confidence under the provisions of 10 CFR 2.790 with the understanding that it is to be received in confidence by the Commission.

5.

The information, to the best of its knowledge and belief, is not available in public sources, and any disclosure to third parties has been made pursuant to regulatory provisions or proprietary agreements which provide for maintenance of the information in confidence.

6.

Public disclosure of the information is likely to cause substantial harm to the competitive position of Combustion Engineering because:

a.

A similar product is manufactured and sold by major pressurized water reactor competitors of Combustion Engineering.

b.

Development of this information by C-E required thousands of manhours and hundreds of thousands of dollars.

To the best of its knowledge and belief, a competitor would have to undergo similar expense in generating equivalent information.

c.

In order to acquire such information, a competitor would also require considerable time and inconvenience to perform fuel examinations to characterize rod and assembly growth in Palo Verde Unit l.

d.

The information required significant effort and expense to obtain the licensing approvals necessary for application of the information.

Avoidance of this expense would decrease a

competitor's cost in applying the information and marketing the product to which the information is applicable.

e.

The information consists of the result of fuel examinations to characterize rod and assembly growth conducted during the end-of-cycle 3 refueling outage at Palo Verde Unit I, the application of which provides a competitive economic advantage.

The availability of such information to competitors would enable them to modify their product to better compete with Combustion Engineering, take marketing or other actions to improve their product's position or impair the position of Combustion Engineering's

product, and avoid developing similar data and analyses in support of their processes, methods or apparatus.

f.

In pricing Combustion Engineering's products and services, significant research, development, engineering, analytical, manufacturing, licensing, quality assurance and other costs and expenses must be included.

The ability of Combustion Engineering's competitors to utilize such information without

-:Mr. William F.

Conway March 23, 1993 similar expenditure of resources may enable them to sell at prices reflecting significantly lower costs.

g.

Use of the information by competitors in the international marketplace would increase their ability to market nuclear steam supply systems by reducing the costs associated with their technology development.

In addition, disclosure would have an adverse economic impact on Combustion Engineering's potential for obtaining or maintaining foreign licensees.

We have reviewed your letter and the material based on the requirements and criteria of 10 CFR 2.790

and, on the basis of the Combustion Engineering affidavit, have determined that the submitted information sought to be withheld contains trade secrets or proprietary commercial information.

Therefore, we have determined that the document entitled "Palo Verde Nuclear Generating Station Unit 1 End-of-Cycle 3 Fuel Examination Report,"

CEN-419(V)-P marked as proprietary will be withheld from public disclosure pursuant to 10 CFR 2.790(b)(5) and Section 103(b) of the Atomic Energy Act of

1954, as amended.

Withholding from public inspection shall not affect the right, if any, of persons properly and directly concerned to inspect the documents.

If the need

arises, we may send copies of this information to our consultants working in this area.

We will, of course, ensure that the consultants have signed the a'ppropriate agreements for handling proprietary information.

I

. If the basis for withholding this information from public,inspectionshould change in the future such that the information could then be made available

'or public inspection, you should promptly notify the NRC You should also understand that the NRC may have cause to review this determination in the future, for example, if the scope of a Freedom of Information Act request includes your information.

In all review situations, if the NRC makes a

determination adverse to the above, you will be notified in advance of any

'ublic disclosure.

Sincerely, Original signed by Charles H. Trammell, Sr. Project Manager Project Directorate V

Division of Reactor Projects III/IV/V Office of Nuclear Reactor Regulation cc:

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Conway similar expenditure of resources may enable them to sell at prices reflecting significantly lower costs.

g.

Use of the information by competitors in the international marketplace would increase their ability to market nuclear steam supply systems by reducing the costs associated with their technology development.

In addition, disclosure would have an adverse economic impact on Combustion Engineering's potential for obtaining or maintaining foreign licensees.

We have reviewed your letter and the material based on the requirements and cr'iteria of 10 CFR 2.790

and, on the basis of the Combustion Engineering affidavit, have determined that the submitted information sought to be withheld contains trade secrets or proprietary commercial information.

Therefore, we have determined that the document entitled "Palo Verde Nuclear Generating Station - Unit I End-of-Cycle 3 Fuel Examination Report,"

CEN-419(V)-P marked as proprietary will be withheld from public disclosure pursuant to 10 CFR 2.790(b)(5) and Section 103(b) of the Atomic Energy Act of

1954, as amended.

Withholding from public inspection shall not affect the right, if any, of persons properly and directly concerned to inspect the documents.

If the need

arises, we may send copies of this information to our consultants working in this area.

We will, of course, ensure that the consultants have signed the appropriate agreements for handling proprietary information.

If the basis for withholding this information from public inspection should change in the future such that the information could then be made available for public inspection, you should promptly notify the NRC.

You should also understand that the NRC may have cause to review this determination in the future, for example, if the scope of a Freedom of Information Act request includes your information.

In all review situations, if the NRC makes a

determination adverse to the above, you will be notified in advance of any public disclosure.

Sincerely, ew Charles N. Trammell, Sr. Project Nanager Project Directorate V

Division of Reactor Projects III/IV/V Office of Nuclear Reactor Regulation cc:

See next page

Mr. William F.

Conway Arizona Public Service Company Palo Verde CC:

Nancy C. Loftin, Esq.

Corporate Secretary

5. Counsel Arizona Public Service Company P. 0.

Box 53999, Mail Station 9068

Phoenix, Arizona 85072-3999 James A. Beoletto, Esq.

Southern California Edison Company P.

O.

Box 800

Rosemead, California 91770 Senior Resident Inspector U.S. Nuclear Regulatory Commission HC-03 Box 293-NR

Buckeye, Arizona 85326 Regional Administrator, Region V

U.

S. Nuclear Regulatory Commission 1450 Maria Lane Suite 210 Walnut Creek, California 94596 Mr. Charles B. Brinkman, Manager Washington Nuclear Operations ABB Combustion Engineering Nuclear Power 12300 Twinbrook Parkway, Suite 330 Rockville, Maryland 20852 Mr. William A. Wright, Acting Director Arizona Radiation Regulatory Agency 4814 South 40 Street

Phoenix, Arizona 85040 Chairman Maricopa County Board of Supervisors 111 South Third Avenue

Phoenix, Arizona 85003 Jack R.

Newman, Esq.

Newman

& Holtzinger, P.C.

1615 L Street, N.W., Suite 1000 Washington, D.C.

20036 Curtis Hoskins Executive Vice President and Chief Operating Officer Palo Verde Services 2025 N. 3rd Street, Suite 220

Phoenix, Arizona 85004 Roy P.

Lessey, Jr.,

Esq.

Bradley W. Jones, Esq.

Arkin, Gump, Strauss, Hauer and Feld El Paso Electric Company 1333 New Hampshire Ave., Suite 400 Washington, D.C.

20036

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