ML18107A357

Application for Amends to Licenses DPR-70,DPR-75 & NPF-57 Re Transfer of PSEG Ownership Interests & Licensed Operating Authorities to New,Affiliated Nuclear Generating Company, PSEG Nuclear Llc.Proprietary Encls Withheld

ML18107A357
Person / Time
Site:	Salem, Hope Creek
Issue date:	06/04/1999
From:	Eric Simpson Public Service Enterprise Group
To:	NRC OFFICE OF INFORMATION RESOURCES MANAGEMENT (IRM)
Shared Package
ML18107A359	List: ML18107A357 ML18107A360
References
LCR-H99-06, LCR-H99-6, LCR-S99-14, LR-N99257, NUDOCS 9906090116
Download: ML18107A357 (52)

Text

Public Service Electric and Gas Company E. c. Simpson Public Service Electric and Gas Company P.O. Box 236, Hancocks Bridge, NJ 08038 609-339-1700 Senior Vice President - Nuclear Engineering JUN 4 1999 LR-N99257 LCR H99-06 *<St* LCR S99-14 Docket Nos. 50-272, 50-311 & 50-354 U.S. Nuclear Regulatory Commission Attention: Document Control Desk Washington, D.C. 20555 Re: Salem Generating Station, Unit 1, Operating License No. DPR-70 Salem Generating Station, Unit 2, Operating License No. DPR-75 Hope Creek Generating Station, Unit 1, Operating License No. NPF-57 Proposed License Transfer and Conforming License Amendments Supporting Reorganization of Public Service Electric and Gas Company

• Dea,* Sir/Madam:

In accordance with Section 184 of the Atomic Energy Act, and 10 C.F.R. § 50.-80, Public Service Electric and Gas Company ("PSE&G") requests Nuclear Regulatory Commission ("NRC") consent to the transfer of PSE&G's interests in Facility Operating License Nos. DPR-70 and DPR-75 for the Salem Generating Station, Units 1 and 2, respectively, and Facility Operating License No. NPF-57 for the Hope Creek Generating Station. PSE&G specifically requests that the NRC consent to the transfer of PSE&G's ownership interests and licensed /

operating authorities to a new, affiliated nuclear generating company, PSEG ~

Nuclear LLC (PSEG Nuclear). PSEG Nuclear would be authorized to possess, r use, and operate the units under essentially the same conditions and authorizations included in the existing licenses.

The PSE&G reorganization and transfer of the nuclear plants to PSEG Nuclear is being undertaken in response to the ongoing restructuring of the electric utility industry in the State of New Jersey. On February 9, 1999, the

. ,, . ! , Senate and General Assembly of the State enacted the New Jersey* Electric

• * : .* -' *- 0 Discount and Energy Competition Act, Chapter 23 of the New Jersey Laws of 1999 ("Restructuring Act"). Beginning October 1, 1999, all New Jersey retail electric customers will be entitled to reduced electric rates and will be permitted to begin taking_Qow_e_r frQm_alternative_suo~liers. The Restructuring Act calls for

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r e JUN 4 1999 Document Control Desk LR-N99257 elimination of the traditional retail monopoly which electric utilities have held with respect to electric power generation and supply services, to afford consumers the opportunity to access a competitive market for these services.

In accordance with the Restructuring Act, on March 17, 1999, PSE&G and a number of the parties to the proceeding on restructuring before the New Jersey Board of Public Utilities ("BPU") filed a Stipulation addressing restructuring, stranded costs, decommissioning, and functional unbundling. Among other things, under the Stipulation, PSE&G is to transfer its generation assets, including its interests in nuclear plants, to a new, unregulated affiliate. On April 21, 1999, the BPU issued a Summary Order based upon the Stipulation, essentially accepting the agreement and the restructuring plan. Accordingly, following and conditioned upon receiving all necessary regulatory approvals, specifically including approval of the transfers requested herein, the PSE&G nuclear generating assets will b.e transferred to the new nuclear generation affiliate. PSE&G's non-nuclear generation assets will be transferred to a separate affiliated company. PSE&G will become an electricity and gas transmission and distribution company. All of these entities will be wholly-owned subsidiaries of Public Service Enterprise Group Incorporated, the current parent of PSE&G.

• PSE&G currently owns 42.59% each of Salem, Units1 and 2, and 95% of the Hope Creek unit, and is the operator of these three nuclear plants. 1 As a result of the proposed transfers, PSEG Nuclear will become the owner of PSE&G's current ownership shares and.will assume operational responsibility for these units. These transfers do not involve the non-operating ownership interests in the units held by Atlantic City Electric Company and Delmarva Power

• and Light Company (now conducting business as Conectiv), and by Philadelphia Electric Company (PECO Energy). No physical changes will be made to the nuclear plants as a result of these transfers, and there will be no significant change in the day-to-day management and operations of the plants. Current nuclear personnel and the existing organizations will continue to support the nuclear plants with minimal changes.

Because the proposed restructuring affects the named licensees, PSE&G also requests NRG approval of certain administrative amendments to conform the operating licenses and plant Technical Specifications to reflect the proposed transfers, which are being submitted in accordance with 10 C.F.R. § 50.90. In accordance with 10 C.F.R. § 50.91(b)(1), a copy of this submittal has been sent PSE&G is also a non-operating owner of 42.49% interests in Peach Bottom, Units 2 and

3. By separate application under 10 C.F.R. § 50.80, PSE&G will seek NRG consent to transfer of these licensed interests to PSEG Nuclear LLC.

ATTACHMENT 1 OF THIS SUBMITTAL CONTAINS PROPRIETARY INFORMATION

-NOTFORPUBLICDIBCLOSURE-95-4933

JUN 4 1999 Document Control Desk LR-N99257 to the State of New Jersey. The changes are described in Appendix 1 and Appendix 2 of the Attachment to this letter. Administrative changes to documents other than the existing licenses and the Technical Specifications will be necessary upon completing the transfer of the nuclear plants. Changes to documents such as the Updated Final Safety Analysis Reports, Physical Security Plans, and Emergency Plans will be achieved in a timely fashion during periodic or routine updates as required by NRG regulations, such as 10 C.F.R. § 50.71(e).

Additional information pertaining to the proposed reorganization, including the information required under 10 C.F.R. § 50.80 and NRG Administrative Letter 96-02, is included in the Attachment. As this information demonstrates, PSE&G's reorganization will not (1) have any adverse impact on the ownership or operation of PSE&G Salem Units 1 and 2 and Hope Creek Unit 1; (2) affect the managerial, technical, or financial qualifications of the licensed owners and operators of these plants; (3) affect assurance of decommissioning funding for the units; (4) result in foreign ownership, control or domination over any of these licenses or licensees; or (5) have any adverse impact on competition or require any additional NRG antitrust review. The Attachment includes a mark-up of the facility operating licenses and the relevant portions of the plant Technical Specifications, reflecting the conforming administrative amendments associated with the transfers (in Appendix 1 and Appendix 2). The Attachment also contains an evaluation of the conforming administrative amendments, which confirms the NRC's generic finding in 10 C.F.R. § 2.135(a) that such conforming administrative amendments to the license of a utilization facility involve no significant hazards considerations (in Appendix 3).

In summary, the proposed reorganization will not be inimical to the common defense and security or result in any undue risk to public health and safety, and the transfer of the NRG licenses associated with PSE&G's reorganization will be consistent with the requirements and guidelines set forth in the Atomic Energy Act, NRG regulations, and relevant NRG Standard Review Plans.

There are certain regulatory approvals and filings beyond that of the NRG which must be addressed prior to the proposed transfer of the nuclear generating assets to PSEG Nuclear. These include, for example, approvals by the Federal Energy Regulatory Commission ("FERG") and filings with the Securities and Exchange Commission ("SEC"). PSE&G is requesting FERG approval by October 1, 1999, to meet the current retail choice schedule in New Jersey.

PSE&G respectfully requests NRG review and action on this submittal by that

. date. Upon NRG approval of this proposed change, PSE&G requests that the amendment be made effective on the date of issuance, but allow for an implementation period until December 31, 1999, to provide sufficient time for ATTACHMENT 1 OF THIS SUBMITTAL CONTAINS PROPRIETARY INFORMATION

-NOTFORPUBLICDIBCLOSURE-95-4933

9*

JUN 4 1999 Document Control Desk LR-N99257 associated administrative activities. PSE&G will keep the NRC informed of any significant changes in the status of the other required approvals or other developments that could have an impact on this schedule for the reorganization.

The Attachment (and the Appendices thereto) includes information to support this license transfer request that necessarily includes certain confidential business and financial information. Accordingly, PSE&G is submitting herein a redacted version of the Attachment and an affidavit formally requesting, pursuant to 10 C.F.R. § 2.790, that this proprietary information be withheld from public disclosure.

In the event that the NRC has any questions about PSE&G's proposed reorganization or wishes to obtain any additional information about the reorganization, please contact Jeffrie J. Keenan, counsel for PSE&G, at (609) 339-5429.

Sincerely, Attachments (2)

Affidavit ATTACHMENT 1 OF THIS SUBMITTAL CONTAINS PROPRIETARY INFORMATION

-* NOT FOR PUBLIC DISCLOSURE --

95-4933

JUN 4 1999 Document Control Desk LR-N99257 C Mr. H. Miller, Administrator- Region I (WITHOUT ATTACHMENT 1)

U.S. Nuclear Regulatory Commission 475 Allendale Road King of Prussia, PA 19406 Mr. R. Ennis Licensing Project Manager - Hope Creek U. S. Nuclear Regulatory Commission One White Flint North Mail Stop 8B1 11555 Rockville Pike Rockville, MD 20852 Mr. P. Milano Licensing Project Manager - Salem U. S. Nuclear Regulatory Commission One White Flint North Mail Stop 8B 1 11555 Rockville Pike Rockville, MD 20852 USNRC Senior Resident Inspector - HC (X24)

Mr. K. Tosch, Manager IV (WITHOUT ATTACHMENT 1)

Bureau of NuclearEngineering P. 0. Box 415

• Trenton, NJ 08625

• ATTACHMENT 1 OF THIS SUBMITTAL CONTAINS PROPRIETARY INFORMATION

-- NOT FOR PUBLIC DISCLOSURE --

95.4933

REF: LCR H99-06 LCR S99-14 LR-N99257 STATE OF NEW JERSEY )

) SS.

COUNTY OF SALEM )

E. C. Simpson, being duly sworn according to law deposes and says:

I am Senior Vice President - Nuclear Engineering of Public Service Electric and Gas Company, and as such, I find the attachment accompanying this correspondence (LR-N99257), concerning the Salem Generating Station, Units 1 and 2, and the Hope Creek Station, Unit 1, are true to the best of my knowledge, information and belief.

PSE&G requests that this correspondence be treated as confidential and withheld from public disclosure pursuant to 10 C.F.R. 2.790(a)(4).

Specifically, Appendices 9, 10 and 11 of Attachment 1 contain information associated with New Jersey state restructuring legislation and contains commercial and financial information that is privileged and confidential. Other than PSE&G's disclosure as required under 10 C.F.R. §50.80, the information therein has been held in confidence and not disclosed to the public. Internal distribution of this information has likewise been limited to essential PSE&G personnel.

Subscribed and Sworn to before me

. lhisL{ +h day~ , 1999

+~~

, - Notary Public of New Jersey

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SALEM 1 INFORMATION SUBMITTED IN SUPPORT OF PROPOSED LICENSE rRANSFER AND CONFORMING ADMINISTRATIVE LIENSE AMENDMENTS REC'D W?LTR DTD 06/04/99 .... 9906090116 i

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• -NOTICE-THE ATTACHED FILES ARE OFflCAL RECORDS OF THE*

OCIO/INFORMATION MANAGEMENT DIVISION. THEY HAVE BEEN CHARGED TO YOU FOR A LIMITED TIME PERIOD AND MUST BE RETURNED TO THE RECORDS AND ARCHIVES SERVICES SECTION, T-5C3. PLEASE DO NOT SEND DOCUMENTS CHARGED OUT THROUGH THE MAIL. REMOVAL OF ANY PAGE(S)

FROM DOCUMENTS FOR REPRODUCTION MUST BE .

REFERRED TO FILE PERSONNEL.

-NOTICE~

Attachment 2 Docket Nos. 50-272 50-311 50-354 Public Service Electric and Gas Company ("PSE&G") submits the following information and requests, pursuant to 10 C.F.R. § 50.80, Nuclear Regulatory Commission ("NRC") consent to the transfer of PSE&G's interests in Facility Operating License Nos. DPR-70 and DPR-75 for the Salem Generating Station, Units 1 and 2, respectively, and Facility Operating License No. NPF-57 for the Hope Creek Generating Station (collectively referred to as the "Nuclear Plants"). PSE&G specifically requests that the NRC consent to the transfer of PSE&G's licensed authorities and responsibilities to a new, affiliated nuclear generating company, to be named PSEG Nuclear LLC. PSEG Nuclear would be authorized to possess, use, and operate the Nuclear Plants under essentially the same conditions and authorizations included in the existing licenses.

PSE&G currently owns 42.59% of Salem, Units1 and 2, and 95% of the Hope Creek unit, and is the operating licensee for these three Nuclear Plants. 1 PSE&G is making this application as a result of electric utility restructuring in the State of New Jersey. As described more fully below, PSEG Nuclear will be created as a new, wholly-owned subsidiary of Public Service Enterprise Group, Inc. ("Enterprise"), the current parent of PSE&G. As a result of the proposed transfers, PSEG Nuclear will become the owner of PSE&G's current ownership shares of the Nuclear Plants and will assume operational responsibility for these units. In addition, PSE&G will transfer non-nuclear generating units to a separate affiliate, and will become an electricity and gas transmission and distribution company. These transfers do not involve the non-operating ownership interests in the Nuclear .Plants.

No physical changes will be made to the Nuclear Plants as a result of these transfers, and there will be no significant change in the day-to-day PSE&G is also a non-operating owner of 42.49% interests in Peach Bottom, Units 2 and 3. By separate application under 10 C.F.R. § 50.80, PSE&G will seek NRC consent to transfer of these ownership interests to PSEG Nuclear.

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Attachment 2 Docket Nos. 50-272 50-311 50-354 management and operations of the Nuclear Plants.* Nuclear personnel and the existing organizations will continue to support the plants, although they may be assigned to new corporate entities.

Because the proposed restructuring affects the named licensees, PSE&G also requests NRC approval of certain administrative amendments to conform the operating licenses and plant Technical Specifications to reflect the proposed transfers. Proposed changes are shown in mark-ups included as Appendices 1 and 2.

Administrative changes to documents other than the existing licenses and the Technical Specifications will be necessary upon completing the transfer of the Nuclear Plants. Changes to documents such as the Updated Final Safety Analysis Report, Physical Security Plan, Quality Assurance Plan and Emergency Plan will be achieved in a timely fashion during periodic or routine licensing correspondence or updates required by NRC regulations, such as 10 C.F.R. § 50.71 (e). Changes to other documents, such as procedures, drawings, and manuals will be achieved in accordance with periodic or routine internal processes applicable to those documents. 2 The transfer of the Nuclear Plants to PSEG Nuclear is being undertaken by PSE&G in response to the ongoing restructuring of the electric utility industry in the United States and the State of New Jersey. On February 9, 1999, the Senate and General Assembly of the State enacted the New Jersey Electric Discount and Energy Competition Act, Chapter 23 of the New Jersey Laws of 1999 ("Restructuring Act"). This legislation provides that all New Jersey retail electric customers are entitled to reduced electric rates and shall have the opportunity to exercise choice as to their electric supplier. The Restructuring Act 2

The need for changes to licenses, permits, and certificates issued by certain government entities other than the NRC, such as the Federal Communications Commission (communications licenses), State of New Jersey (e.g., elevator permits), and local governments, will be evaluated and changes will be made where necessary during periodic or routine applications filed with such entities. It is anticipated that any changes*

would be minor in nature, for example involving changes in the owner's name, and are collateral to the transfer being requested under 10 C.F.R. § 50.80.

2

Attachment 2 Docket Nos. 50-272 50-311 50-354 further calls for elimination of the traditional retail monopoly which electric utilities have held with respect to electric power generation and supply services, to afford consumers the opportunity to access a competitive market for these services.

Presently, PSE&G is a wholly-owned subsidiary of Public Service Enterprise Group Incorporated, a New Jersey corporation and an exempt public utility holding company under the Public Utility Holding Company Act. PSE&G is a public utility within the definition of 10 C.F.R. § 50.2 and is engaged in the generation, transmission, distribution, and sale of electric energy in New Jersey.

PSE&G provides retail electric service to approximately 1.9 million residential and 300,000 industrial and commercial customers. As such, PSE&G is subject to the regulatory jurisdiction of the New Jersey Board of Public Utilities ("BPU").

In addition, PSE&G makes wholesale electric sales and provides transmission

..... services to municipal customers located in New Jersey and, through interchange agreements, to surrounding integrated systems.

Pursuant to the Restructuring Act, on March 17, 1999, PSE&G and a number of parties in a restructuring proceeding before the BPU filed a Stipulation addressing Restructuring, Stranded Costs, and Unbundling. On April 21, 1999, the BPU issued a Summary Order addressing, approving, and in some respects modifying the Stipulation. The Stipulation and Summary Order are included in Appendices 4 and 5. As modified and approved, the restructuring plan involves:

• Rate Reductions - PSE&G customers will receive four rate reductions over a three-year time period beginning with a 5 percent rate reduction on August 1, 1999, rising to 13.9 percent by August 1, 2002.

• PSE&G Assets/Functional Unbundling - Generation assets and liabilities are to be transferred to an affiliated entity to establish a level, competitive market for generation.

• Stranded Costs - The BPU approved a $2.940 billion stranded costs recovery for PSE&G, through securitization of $2.400 billion and an opportunity to recover $540 million of unsecuritized generation-related stranded costs based on present value.

• Basic Generation Service ("BGS") - In order to provide a stable transition to a competitive market, the utility, PSE&G, will retain a three~year obligation to provide BGS to those retail customers w_ho remain with the utility.

• Transition Period - Full competition will be achieved in four years, with BGS supplied on the basis of competitive bid in year four.

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Attachment 2 Docket Nos. 50-272 50-311 50-354

• Shopping Credits - A consumer shopping credit averaging in excess of five cents.

• Nuclear Decommissioning Funding - Nuclear decommissioning funding assurance is provided, based on the Restructuring Act, through a non-bypassable wires charge ("Societal Benefits Charge") imposed on electric utility customers.

In accordance with the BPU Order and Stipulation, PSE&G will restructure and create new wholly-owned subsidiaries, as illustrated in Appendix

6. Of most importance for present purposes, there will be a new wholesale generation holding company, to be named PSEG Power LLC. PSEG Power will in turn have subsidiaries that will collectively own PSE&G's current generation assets and conduct certain unregulated businesses. These subsidiaries will include: 1) PSEG Nuclear, which will own and operate the Salem units and Hope Creek and which will own the PSE&G interest in the Peach Bottom units; 2)

PSEG Fossil LLC, which will own other non-nuclear generating assets; and 3)

PSEG Energy Resources and Trade LLC "PSEG ERT", which will operate as a power marketer and will potentially engage in other non-regulated, generation-related services. PSE&G, PSEG Power, PSEG Nuclear, PSEG Fossil, and PSEG ERT will all be wholly-owned subsidiaries of Enterprise, the current parent.

of PSE&G. .

As presently conceived by PSE&G, and consistent with the terms of the Stipulation and BPU Order, the key responsibilities, attributes, and relationships of the reorganized companies will be:

(a) PSEG Nuclear will assume title to PSE&G's interests in the Nuclear Plants and Peach Bottom (including all real estate, buildings, equipment, spare parts, fixtures, inventory, documents, records, assignable contracts, other property necessary for the operation and maintenance of the plants; and all used and spent nuclear fuel and other licensed materials at the plants).

(b) PSEG Nuclear will assume all responsibility for the operation and maintenance of the Salem units and Hope Creek. 3 The transfer of the Nuclear Plants from PSE&G to the newly established and wholly-owned generating subsidiary is conditioned upon receiving all necessary regulatory approvals, specifically including approval of this requested transfer.

4

Attachment 2 Docket Nos. 50-272 50-311 50-354 (c) PSE&G's approximately 2,000 employees located at Salem and Hope Creek who are involved in the operation and maintenance of those units will be *assigned to a PSEG affiliated company, but will continue to perform their functions on behalf of PSEG Nuclear.

(d) PSEG Nuclear and PSEG Fossil will be established as exempt wholesale generators ("EWGs") with approval from the Federal Energy Regulatory Commission ("FERC") to sell wholesale power at market-based rates.

(e) PSE&G will meet its three-year BGS obligation to those retail customers who choose to remain with the utility by establishing a contract for electric supply with PSEG ERT. (There will be a bidding out of the BGS to be provided after July 31, 2002. PSEG Power will be authorized to bid for the BGS to be provided after July 31, 2002.)

(f) To meet its BGS obligation, PSEG ERT will take the full output of both PSEG Fossil and PSEG Nuclear. Capacity in excess of the BGS will be sold by PSEG ERT, under wholesale power purchase ~greements or on the competitive wholesale market.

• (g) The power contracts between and among PSEG Nuclear/PSEG ERT will obligate PSEG ERT to take all capacity from PSEG Nuclear's generation assets and for payments to PSEG Nuclear that assure PSEG Nuclear's recovery of its generating costs, including operating and maintenance costs, capital additions, and fuel costs.

(h) Contracts associated with the electric generating business, including, but not limited to, wholesale electric purchase and sales agreements, fuel contracts, and other contractual rights and liabilities, will be transferred by PSE&G to PSEG Power, and, as appropriate, to PSEG Nuclear.

(i) PSEG Nuclear will become responsible for the decommissioning of the Nuclear Plants. As is discussed further below, PSEG Nuclear will become the owner of the Nuclear Decommissioning Trust Funds presently maintained by PSE&G, and continued funding for decommissioning will be provided by PSE&G to PSEG Nuclear through the non-bypassable wire charge ("Societal Benefits Charge") established by the Restructuring Act.

Appendix 7 shows the relationship of these affiliated entities in overview fashion .

• 5

Attachment 2 Docket Nos. 50-272 50-311 50-354 A. Name of New Licensee The new licensee will be PSEG Nuclear, LLC.

8. Address 80 Park Plaza Newark, New Jersey 07102 C. Description of Business or Occupation PSEG Nuclear will be a limited liability company organized under the laws of the State of Delaware formed to acquire the interests in nuclear generating stations presently owned by PSE&G and to operate the Salem and Hope Creek units. Following the transfer, PSEG Nuclear will be engaged principally in the nuclear generation of electricity as an EWG authorized to sell electricity at market-based rates D. Organization and Management Prior to the transfer, a Board of Directors of PSEG Nuclear will be designated by Enterprise and PSEG Power, the parent of PSEG Nuclear. The identity of the directors will be provided to the NRC when it is available.

Effective upon the transfer, the officers of PSEG Nuclear, all of whom are citizens of the United States, will include:

• Harold W. Keiser President and Chief Executive Officer

• Elbert Simpson Senior Vice President, Engineering

• Louis Storz Senior Vice President, Operations

• Morton A. Plawner Chief Financial Officer and Treasurer

• Edward J. Biggins Secretary The identity of any additional officers will be provided to the NRC when available.

No substantive changes to the current management and organization engaged in operation of the Nuclear Plants are contemplated as a result of the transfer. Therefore, PSEG Nuclear expects to maintain its substantial nuclear operating experience. PSEG Nuclear also will assume the 6

Attachment 2 Docket Nos. 50-272 50-311 50-354 memberships with the Institute of Nuclear Power Operations ("INPO") and the Nuclear Energy Institute ("NEI").

Under Sections 103d and 104d of the Atomic Energy Act of 1954, as amended, an operating license may not be transferred to "any corporation or other entity if the Commission knows or has reason to believe it is owned, controlled, or dominated by an alien, a foreign corporation or a foreign government," or if in the opinion of the Commission, the transfer "would be inimical to the common defense and security." Following the proposed transfer, PSEG Nuclear will not be owned, controlled or dominated by an alien, a foreign corporation or a foreign government. In addition, neither PSE&G nor PSEG Nuclear is acting as agent or representative of any other person in filing this application.

E. Class of License The operating licenses for Salem, Units 1 and 2, were issued under the provisions of Section 104b of the Atomic Energy Act. The expiration date of the current license for Salem Unit 1 is August 13, 2016 and for Salem Unit 2 is April 18, 2020. The Hope Creek operating license was issued under the provisions of Section 103 of the Act. The expiration date of the current license for Hope Creek is April 11, 2026. PSE&G and PSEG Nuclear are requesting a direct transfer of the existing licenses. A change in the class of Operating License for each plant is not being requested as part of the transfer application.

Upon transfer, PSEG Nuclear will become the licensed operator for the Nuclear Plants. The technical qualifications of PSEG Nuclear to carry out its responsibilities under the existing operating licenses will remain the.same as that of the current licensee.

The existing nuclear organizations at Salem/Hope Creek will remain essentially intact and the employees will become employees of either PSEG Nuclear, PSEG Power, or a corporate support organization, as of the date of the transfer. Existing PSE&G support organizations which are not currently assigned to the Nuclear Plants (e.g., off-site support organizations) also will become either part of PSEG Nuclear, PSEG Power, or part of a corporate service company. (A service company would support PSEG Nuclear under a corporate services agreement.) In the aggregate, functions, responsibilities and reporting relationships within and among of these organizations, especially as 7

Attachment 2 Docket Nos. 50-272 50-311 50-354 they relate to activities important to the safe operation of the Nuclear Plants, will confinue to be clear and unambiguous and performance of these organizations will be essentially unaffected by the transfer.

PSE&G will also transfer to PSEG Nuclear all of the assets related to operation of the Nuclear Plants. Among these assets are an extensive list of documents, including books, operating records, manuals, blue-prints, specifications, engineering design plans, procedures, etc. These documents include the official copies of records which the NRC requires a licensee to maintain. The vast majority of these documents are located at the Nuclear Plants; however, to the extent that other such documents are maintained at PSE&G offices located elsewhere, custody and control of these documents will be assured as part of the transfer.

Further, as necessary, contracts with the Architect Engineers, the Nuclear Steam Supply System suppliers, and other major vendors for the Nuclear Plants will be assigned to PSEG Nuclear as allowed under these contracts, or appropriate other contracts will be obtained by PSEG Nuclear in a timely manner. Other contracts and contractor relationships relating to the Nuclear Plants will be assigned or transferred to PSEG Nuclear as appropriate.

The overriding philosophy that will govern PSEG Nuclear's management will be to assure that PSEG Nuclear will continue to manage, operate, and maintain the Nuclear Plants in accordance with the conditions and requirements established by the NRC and with the same high regard for public and personnel safety demonstrated by PSE&G.

A. Projected Operating Costs and Revenues Under the NRC's regulations, 10 C.F.R. § 50.33(f)(2), a non-electric utility applicant for an operating license (or a transferee) must demonstrate that it possesses or has reasonable assurance of obtaining the funds necessary to cover the plant's estimated operational costs by submitting "estimates for total annual operating costs for each of the first five years of operation of the facility" as well as the "source(s) of funds to cover these costs." NRC's Standard Review 8

Attachment 2 Docket Nos. 50-272 50-311 50-354 Plan ("SRP") on financial qualifications4 further specifies that a non-electric utility applicant should submit "estimates for total annual operating costs for each of the first 5 years of operation and must indicate the source(s) of funds to cover operating costs."

For purposes of PSEG Nuclear's financial qualifications, it is important to recognize first that PSEG Nuclear will sell its share of power directly to PSEG ERT under a contract that assures that PSEG Nuclear's operating costs are covered. Therefore, PSEG Nuclear will not operate as a "business."

PSEG Nuclear's financial qualifications are established by virtue of this contract and a detailed financial qualifications review is not required.

Second, PSEG Nuclear will be an affiliate of Public Service Enterprise Group, the current parent of PSE&G. Included in Appendix 8 are Annual Financial Reports for Public Service Enterprise Group and PSE&G, for the last three years, demonstrating the overall stature of the corporate family.

PSE&G, the "electric utility," will maintain the BGS obligation at the approved BGS rate for at least three years.

Moreover, following the restructuring, financing and financial reporting relevant to the generation affiliates will occur at the PSEG Power level.

PSEG Power will be a financially robust entity in its own right, holding, through separate subsidiaries, extensive interests in several nuclear units, several fossil generating stations, and a power marketing business. PSEG Power will also consider opportunities of growth through acquisition and development of fossil generating capacity. PSEG Power will be established with capitalization to support a credit rating of at least BBB from widely-accepted rating organizations.

The capitalization and the extent and diversity of PSEG Power's assets provide assurance that PSEG Power will be able to meet its financial obligations to PSEG ERT and the generation companies with respect to the energy and capacity from the Nuclear Plants.

The total estimated operating costs attributable to PSEG Nuclear's ownership shares of the five nuclear units, assuming a transfer effective on January 1, 2000, and based on the current financial projections, are shown in Appendix 9. These costs include plant operations and maintenance costs, non-fuel capital additions, and nuclear fuel for the Nuclear Plants. (The fixed operating costs of these units, for example in the case of an extended shutdown 4

NUREG-1577, Rev. 1, "Standard Review Plan on Power Reactor License Financial Qualifications and Decommissioning Funding Assurance" (January 1999) (the "FQ SRP").

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Attachment 2 Docket Nos. 50-272 50-311 50-354 of a unit, would exclude the fuel costs and other non-fuel capital additions, as well as certain operations and maintenance costs.)

The sources of funds to pay for the nuclear costs will be revenue from energy generated by PSEG Nuclear's prospective shares of the Nuclear Plants and Peach Bottom and revenue from installed nuclear capacity. In essence, and as discussed above, PSEG Nuclear will sell its full output to PSEG ERT at a price that will cover its generating costs. Likewise, PSEG Fossil will sell its full output to PSEG ERT. PSEG ERT will then sell power:

a) to PSE&G for at least three years, in order for PSE&G to meet the full requirements of the BGS customers at BGS prices fixed by the Stipulation; and b) on the competitive wholesale market at market prices Included in Appendix 10 are an Income Statement and Cash Flow projection for PSEG Power from January 1, 2000 through December 31, 2004, as well as a purely market-based projection for revenues from the PSEG Power nuclear capacity. (The revenue projection does not model the BGS contract revenue. The BGS contract rate is expected to exceed actual market rates and is reflected in the PSEG Power income statements and cash flow projections included in Appendix 10.) Appendix 11 shows the projected average market energy price for the nuclear assets, installed capacity charge, and the nuclear capacity factor assumptions included in the Income Statement and Cash Flow and Revenue projections in Appendix 10. BGS revenue is also included in these projections. 5 In sum, PSEG Power will, in the aggregate, more than recover its costs from the sale of electricity generated by its interests in the Nuclear Plants, Peach Bottom, and the other generation capacity owned by PSEG Fossil. To the extent that actual sales revenues are higher than projected, or actual operating expenses are lower than projected, PSEG Power's operating margins will be higher.

The NRC's FQ SRP further provides that the NRC may consider other financial information, such as the availability of cash or cash equivalents to The version of Appendices 9, 10 and 11 attached to the public version of this document are redacted to protect sensitive commercial and financial information. The unredacted version is being filed with the NRC together with the affidavit requesting that the NRC maintain this proprietary information in confidence under 10 C.F.R. § 2.790.

10

Attachment 2 Docket Nos. 50-272 50-311 50-354 pay fixed operating costs during an outage of at least 6 months. With an investment grade credit rating and interests in fossil units as well as five nuclear generating units, a revenue stream will exist if one or more nuclear units is in an extended shutdown. This provides assurance that revenue will be available to maintain a shutdown unit in a safe condition.

B. Decommissioning Funding Assurance Under 10 C.F.R. § 50.75(b), a reactor licensee is required to provide decommissioning funding assurance by one or more of the methods described in 10 C.F.R. § 50.75(e). A funding assurance mechanism approved

• by the NRC will be in place for PSEG Nuclear that meets these requirements.

PSE&G, as a rate-regulated electric utility, currently maintains Nuclear Decommissioning Trusts ("NDTs") for the Nuclear Plants. The NDTs utilize the external sinking fund financial assurance method of 10 C.F.R. § 50.75(e)(1)(i). PSE&G submitted a report on the status of the NDTs on March 31, 1999. A copy of the report on the current status of the decommissioning funds is provided in Appendix 12. PSEG Nuclear proposes to continue to utilize the external sinking fund method, with periodic deposits to the funds over the operating life of the units.

As discussed above, neither PSEG Nuclear nor PSEG Power will be subject to cost of service regulation as that term is defined in NRC regulations. Instead, under the New Jersey Restructuring Act, and the BPU Order, decommissioning funding will be provided by a non-bypassable Societal Benefits Charge ("SBC"). Accordingly, the NRC's financial assurance requirements for decommissioning, as revised in September 1998, 6 will allow PSEG Nuclear to utilize the external sinking fund method. See 10 C.F.R. §

50. 75(e)(1 )(i)(B).

The Restructuring Act defines the SBC at Section 12. Under the Stipulation, Paragraphs 5-7, the SBC is further defined with a level that will remain constant through a four-year transition period commencing on August 1, 1999 and terminating on July 31, 2003. (The initial cost of recovery is established in Attachment 2 to the Stipulation, which is included in Appendix 4 hereto.) After the transition period, the SBC will be reset and reset annually to amortize any over-or under-collected ~alances. 7 This assures that the NRC 6

63 Fed. Reg. 50465.

7 See Stipulation, at 1f 6 (pages 5-6).

11

Attachment 2 Docket Nos. 50-272 50-311 50-354 required level of decommissioning funding will be maintained. Further, biennial reports will be made in accordance with 10 C.F.R. § 50.75(f)(1).

The NDTs will be transferred to PSEG Nuclear and PSE&G will assign SBC revenues to PSEG Nuclear. The NDTs therefore will be within the control of the prospective licensee, as well as the jurisdiction of the NRC.

However, because of federal tax implications of the transfer of the NDTs to PSEG Nuclear, PSE&G believes that certain letter rulings by the Internal Revenue Service ("IRS") and/or certain legislative changes to the Internal Revenue Code or changes in IRS regulations will be necessary to assure that decommissioning funds accumulated in the qualified and non-qualified decommissioning funds for the Nuclear Plants may be transferred to PSEG Nuclear on a tax-free basis. PSE&G intends to seek a private letter ruling necessary for the transfer of the funds to PSEG Nuclear on a tax-free basis. If a private letter ruling can not be timely obtained, PSE&G may need to hold the NDTs for a limited, interim period, pending resolution of the tax issue.

Salem Units 1 and 2 were licensed under Section 104b of the Atomic Energy Act and, thus, in accordance with Section 105 of the Act, are not subject to antitrust review by the NRC in connection with the proposed transfer.

Therefore, the requirements of 10 C.F.R. § 50.33a are not applicable to the transfer of the licenses for two Salem units. 8 Hope Creek was licensed under Section 103 of the Act. The NRC previously conducted an antitrust review with respect to the unit when the plant was originally licensed. In the Antitrust SRP, the NRC indicates that "if there is a direct transfer of the license to a new entity or proposed licensee, a threshold antitrust review of the proposed transferee will be conducted to determine whether the transfer would significantly change the competitive situation." Id. at 3-1. In conducting this threshold review, the NRC Staff will apply to the extent applicable the "significant change" criteria established by the Commission in South Carolina Electric & Gas (Virgil C. Summer Nuclear Station Unit 1), CLl 28, 11 NRC 817 (1980) and CLl-81-14, 13 NRC 862 (1981). Id. A full antitrust review with referral of the matter to the Department of Justice is required only if the Director of the Office of Nuclear Reactor Regulation makes findings of significant changes. If a finding of no significant changes is made, no further antitrust review is required. Id. at 3-4, 3-5.

See NUREG-1574, "NRC Standard Review Plan on Antitrust Reviews,"

Section 1.1, 1.3 and 1.5 (December 1997) ("Antitrust SRP").

12

Attachment 2 Docket Nos. 50-272 50-311 50-354 No significant changes have occurred since the NRC's previous antitrust review and, thus, there is no need to conduct a full antitrust review with respect to the transfer of the Hope Creek license. The proposed license transfer is the result of the unbundling and restructuring approved by the BPU to create a competitive market for electric power generation and supply services in New Jersey. This will afford consumers the opportunity to access a competitive market for these services. In addition, as discussed above, PSEG Nuclear will be engaged entirely in the nuclear generation business; it will not be engaged in power marketing or trading. {The wholesale power trading business of PSE&G will be assigned to a separate affiliate under PSEG Power, as discussed above.)

Thus, consistent with Section 3.3.2 of the Antitrust SRP, there is no basis to attribute market power or its abuse to PSEG Nuclear, and there is no need to conduct a threshold antitrust review.

PSE&G also recognizes that the Commission, in its Memorandum and Order, CLl-99-05, in the matter of Kansas Gas and Electric Cooperative (Wolf Creek Generating Station, Unit 1) (64 Fed. Reg. 11069 (March 8, 1999)),

indicated its intent to consider in that case whether to conduct significant changes reviews in license transfer cases generally. Certain parties in that matter maintain that Section 105c of the Atomic Energy Act does not appear to call for fresh antitrust reviews after the initial construction permit and operating license stage. Nothing in this application is intended to concede the need for an antitrust review in the present case.

This license transfer application does not involve any Restricted Data or classified National Security Information, and it is not expected that any such information will become involved in the licensed activities. However, in the event that such information does become involved, PSEG Nuclear agrees that it will appropriately safeguard such information and will not permit any individual to have access to such information until the appropriate organization within PSEG Nuclear has made an investigation and reported to the NRC on the character, associations and loyalty of such individual, and the NRC shall have determined that permitting such person to have access to such information will not endanger the common defense and security of the United States.

13

Attachment 2 Docket Nos. 50-272 50-311 50-354 A. Continuation of Current Design and Licensing Basis The proposed license transfer and conforming administrative

• amendments will authorize PSEG Nuclear to own, operate, and maintain the Nuclear Plants in accordance with the existing and respective operating licenses and Technical Specifications, and will subject PSEG Nuclear to all applicable provisions of the Atomic Energy Act and the NRC's rules, regulations and orders.

The transfer and conforming administrative amendments do not affect the physical configuration of the facility or substantively change the operating licenses (including Technical Specifications) under which the Nuclear Plants operate.

PSEG Nuclear will control or have access to the design and licensing basis documents to the same extent as PSE&G now does. While there will be certain administrative amendments to the Operating Licenses and corresponding Technical Specifications as indicated in Appendices 1 and 2 to this application, PSEG Nuclear does not seek any other changes to the current design and licensing basis for each nuclear plant.

Likewise, the proposed transfers will not change or invalidate design or operations information presently appearing in the Updated Final Safety Analysis Reports ("UFSARs") for the units. Changes to the UFSARs necessary to reflect the proposed transfers and the conforming license amendments will be incorporated into the UFSARs on a schedule that complies with 10 C.F.R. § 50.71 (e), and not necessarily prior to NRC approval of this request.

An evaluation of the proposed conforming administrative amendments was performed in accordance with 10 C.F.R. §§ 50.90 - 50.92 and is included as Appendix 3. This evaluation demonstrates that these changes do not involve a significant hazards consideration and, therefore, confirms that these proposed amendments fall within the scope of NRC's generic finding that "any amendment to the license of utilization facility ... which does no more than conform the license to reflect the transfer action, involves . . . 'no significant hazards consideration."' See 10 C.F.R. § 2.1315(a).

8. Price-Anderson Indemnity and Nuclear Insurance As a result of the transfer, PSEG Nuclear will become responsible for the primary nuclear insurance for the Salem/Hope Creek site as well as the required property insurance. Accordingly, PSEG Nuclear requests that the NRC 14

Attachment 2 Docket Nos. 50-272 50-311 50-354 issue a new Price-Anderson indemnity agreement to PSEG Nuclear upon consenting to the license transfer. The conforming changes (to reflect the transfer in responsibility to PSEG Nuclear) to all required nuclear property and nuclear liability coverage will be made in due course. The information provided in connection with PSEG Nuclear's financial qualifications demonstrates that PSEG Nuclear will be able to pay a maximum aggregate annual assessment (based on PSEG Nuclear's prospective ownership interests in Salem, Hope Creek, and Peach Bottom) of $26.5 million, in compliance with 10 C.F.R. § 140.21(e)-(f).

C. Standard Contract for Disposal of Spent Nuclear Fuel On or after the transfer date, PSEG Nuclear will assume responsibility for storage and disposal of spent nuclear fuel at the Nuclear Plants.

PSE&G will assign, and PSEG Nuclear will assume, PSE&G's rights and obligations under the Standard Contract with the Department of Energy, except that PSE&G will remain liable for any fees that may be imposed for electricity generated and sold prior to the transfer date.

D. Off-Site Power Considerations The physical system for supplying off-site power to the Nuclear Plants will be unchanged as a result of the transfer. The system is currently maintained and operated in accordance with the Lower Delaware Valley Transmission System Agreement of September 13, 1977, by and between Atlantic City Electric Company, Delmarva Power and Light Company, Jersey Central Power & Light Company, Philadelphia Electric Company, and PSE&G, as supplemented and amended, and in accordance with the PJM Interconnection Agreement, dated September 26, 1956, as amended and supplemented. These agreements address, among other things, coordination of switching voltage levels and scheduling of maintenance outages, as well as additions, modifications, and normal maintenance of the transmission facilities.

These agreements will remain in effect and will provide assurance of reliable sources of off-site power and continued compliance with General Design Criterion 17.

E. Exclusion Area Control Upon approval of the transfer, PSEG Nuclear will own all of PSE&G's interests in the Salem and Hope Creek exclusion area and will have authority to determine all activities within the exclusion area to the extent required by 10 C.F.R. Part 100 .

• 15

Attachment 2 Docket Nos. 50-272 50-311 50-354 F. Other Issues

1. Emergency Preparedness Upon consummation of the transfer, PSEG Nuclear will assume authority and responsibility for functions necessary to fulfill the emergency planning requirements specified in 10 C.F.R. § 50.47(b) and Part 50, Appendix E. Transition plans will be established to* ensure that the support described in the existing emergency plans will be maintained following the transfer.

Any changes made to the existing Salem and Hope Creek emergency plans will be made in accordance with 10 C.F.R. § 50.54(q).

Because only a change in licensee is involved, no changes are anticipated that will result in a decrease in the effectiveness of the plans. Any specific emergency plari changes will be submitted to the NRC after the changes are made in accordance with 10 C.F.R. § 50.54(q) and Appendix E.Section V. If as a result of the transfers, any conditions are identified that would decrease the effectiveness of the approved emergency plans, application to the Commission will be made and such proposed changes will not be implemented until approved by the Commission .

• While PSE&G anticipates that no substantive changes will be made to the existing on-site emergency organization, certain corporate support and/or corporate oversight functions may be changed, transferred on-site, or transferred to a corporate support organization. Persons assigned to perform these functions will meet the same qualification requirements as the existing responsible corporate support personnel.

The current off-site emergency facilities and equipment, including the Emergency Operations Facility ("EOF"), the Training Center, and radiation monitoring equipment, will be transferred to PSEG Nuclear. As necessary, ownership of off-site emergency sirens will also be transferred to PSEG Nuclear and existing easements for the siren locations will be assigned to PSEG Nuclear.

Existing agreements for support from organizations and agencies not affiliated with PSE&G will* also be assigned to PSEG Nuclear, as necessary. PSE&G plans to notify the parties to such agreements in advance of the transfer and advise those parties of PSEG Nuclear's responsibility for management and operation of the Nuclear Plants.

In sum, the proposed license transfer will not impact compliance with the emergency planning requirements.

16

Attachment 2 Docket Nos. 50-272 50-311 50-354

2. Security Upon consummation of the transfer, PSEG Nuclear will assume authority and responsibility for the functions necessary to fulfill the security planning requirements specified in 10 C.F.R. Part 73. PSE&G does not anticipate any substantive changes to the existing NRG-approved physical security, guard training and qualifications, and safeguards contingency plans.

Any changes that do occur, or necessary conforming changes, will be made in accordance with 10 C.F.R. § 50.54(p). Transition plans will be established to ensure that the support described in the existing security plans will be maintained following the transfer.

PSE&G anticipates that no substantive changes will be made to the existing on-site security organization, but that certain corporate support and/or corporate oversight functions may be changed, transferred on site, or transferred to a corporate support organization. Persons assigned to perform these functions will meet the same qualification requirements as the existing responsible corporate support personnel.

Existing agreements for support from organizations and agencies not affiliated with PSE&G will be assigned to PSEG Nuclear, as necessary.

PSE&G plans to notify the parties to such agreements in advance of the transfer of the licenses to PSEG Nuclear and to advise those parties of PSEG Nuclear's responsibility for management and operation of the plants.

In sum, the proposed license transfer will not' impact compliance with physical security requirements.

3. Quality Assurance Program Upon consummation of the transfer, PSEG Nuclear will assume authority and responsibility for the functions necessary to fulfill the quality assurance ("QA") requirements of 10 C.F.R. Part 50, Appendix B. PSE&G anticipates that it will be able to transfer all of the current functions and personnel of the existing QA organization to PSEG Nuclear. PSE&G does not anticipate any substantive changes to the existing Quality Assurance Plans, but any changes that do occur will be made in accordance with 10 C.F.R. § 50.54(a).

4. Training The off-site Training Center and Simulator Buildings will be transferred to PSEG Nuclear. The proposed license amendment will not impact compliance with the operator re-qualification program requirements of 10 C.F.R. 17

Attachment 2 Docket Nos. 50-272 50-311 50-354

§ 50.54 (and related sections), and will not impact maintenance of the Institute of Nuclear Power Operations accreditation for licensed and non-licensed training.

Upon transfer of the license, PSEG Nuclear will assume ultimate responsibility

. for implementation of present training programs. Changes to the programs to reflect the transfer will not decrease the scope of the approved operator re-qualification program without the specific authorization of the NRC in accordance with 10 C.F.R. § 50.54(i).

The requested approvals are exempt from environmental review, because they fall within the categorical exclusion in 1O C.F.R. § 51.22(a)(1) for

-* which neither an Environmental Assessment nor an Environmental Impact Statement is required. The proposed license transfers do not involve any amendment to the licenses or other changes that would directly affect the actual operation of the Nuclear Plants. The proposed transfers and changes to the licenses do not involve any increase in the amounts, or a change in the types, of any radiological effluents that may be allowed to be released offsite. The approvals also involve no increase in the amounts or change in the types of any non-radiological effluents that may be released offsite. Further, the transfer does not involve any increase in the individual or cumulative occupational radiation exposure. In sum, the proposed transfer and license changes have no environmental impact.

. In addition to the NRC approval, several approvals will be required from the Federal Energy Regulatory Commission ("FERC"). PSEG Nuclear and PSE&G will need FERC approval for the transfer of jurisdictional assets pursuant to Section 203 of the Federal Power Act. PSEG Nuclear will also need FERC authorization under Section 205 of the Federal Power Act to sell electric generating capacity and energy at wholesale at market-based rates. PSEG Nuclear will also file an application with FERC for a determination that PSEG Nuclear is qualified as an Exempt Wholesale Generator ("EWG") under Section 32 of the Public Utility Holding Company Act of 1935, as amended.

As discussed above, PSE&G believes that certain rulings by the Internal Revenue Service and/or certain legislative changes to the Internal Revenue Code or changes in IRS regulations will be necessary to assure that decommissioning funds accumulated in the qualified and non-qualified 18

Attachment 2 Docket Nos. 50-272 50-311 50-354 decommissioning funds for the Nuclear Plants and presently maintained by PSE&G may be transferred to PSEG Nuclear on a tax-free basis. PSE&G and PSEG Nuclear intend to seek necessary letter rulings or changes necessary for the transfer of the funds on a tax-free basis.

Beginning on October 1, 1999, all of PSE&G's retail customers will be permitted to being taking deliveries of power from alternative suppliers. (In accordance with the New Jersey legislation, customers may begin choosing alternative suppliers on August 1, 1999.) Accordingly, PSE&G respectfully requests NRC review and action on this submittal in a manner consistent with this schedule. PSE&G will keep the NRC informed of any significant changes in the status of the other required approvals or other developments that could have an impact on this schedule for the reorganization .

• 19

Attachment 2 Docket Nos. 50-272 50-311 50-354 Appendices

1. Mark-up of Operating Licenses for Each Nuclear Plant

2. Mark-up of Technical Specifications for Each Nuclear Plant

3. No Significant Hazards Consideration Determination

4. Stipulation

5. BPU Summary Order

6. Reorganized Corporate Affiliate Structure

7. Overview of Affiliate Relationships

8. Annual Financial Reports

9. Estimated Operating Costs -- PSEG Nuclear

10. Income Statement, Cash Flow Projection, and Nuclear Revenue Projection -- PSEG Power

11. Market Price and Capacity Factor Assumptions

12. Report on Nuclear Decommissioning Trust Fund Status 20

License Nos. DPR-70 Docket Nos. 50-272 DPR-75 50-311

• NPF-57 APPENDIX I 50-354 Facility Operating License Changes Salem Unit 1 Changes References to Public Service Electric and Gas Company or PSE&G are being replaced with PSEG Nuclear LLC in the following Sections:

License section, page number Action Description Heading, page 1 Change Public Service Electric and Gas Company to PSEG Nuclear LLC Paragraph IE, page 1 Change Public Service Electric and Gas Company to PSEG Nuclear LLC Paragraph 2, page 2 Add "and transferred to PSEG Nuclear LLC" after Public Service Electric and Gas Company Paragraph 2A, page 2 Change Public Service Electric and Gas Company to PSEG Nuclear LLC (in two places)

Paragraphs 2B(l) through (6), page 3 Change Public Service Electric and Gas Company to PSEG Nuclear LLC (in six places)

Paragraphs 2C(l), (4), (5) and (10), pages 4 Change Public Service Electric and Gas and4b Company to PSEG Nuclear LLC (in six places)

Paragraph 21(6), page 8 -* Change Public Service Electric and Gas Company to PSEG Nuclear LLC Paragraph 2J, page 9 Change Public Service Electric and Gas Company to PSEG Nuclear LLC

UNITED ITATU NUCLEAR REGULATORY COMMlll(ON WASHINGTON. %>. C. Z-. CONTROL COP'{ ~

SG l I

I rx:cm ?I), 50-272 FACJI.rrr OPpAmJj LICP§I

~tNo. 3 License NO. mta-70 l, The Huclear Regulatory Ccllaisaion ( t.'le Ccalisaion) having famd that:*

A. '!he application for lic:ense filed by the PUblic Service Electric am Gas ecmpany, Pbiladelpaia Blectr ic Qaplny, Delmarva Power and Light tmplny, and Atlantic City Electric Caapny (the lic:enseea) and the Qlication for license ~t dated NDWllD!~ a, 1976, filed by Public service Electric and Gia cmpmy cxaply vitb the standards and requirements of tbe Atmic P.nergy Act (the Aet) of 1954, u a.oded, and tbe Ccmiuicn'a rul*

and regulations set fOrtb in 10 CPR Ollpter I md all ~

requ~red notificatiana to otber agencies or badiea haft i .

been duly llllde I

• t t

a. construction of tbe Sal* Hucleu Generating* St:Ationi Unit NO. 1 (facility) hu been sumtantially CClllPletecl in amfonaity witb Proviaicnal -ccnatruction Perait MO.

CWR-52 and the awJlcaticn, a* ...md, the proviaiana of the Act and the rule* and regulatiQna of t:be ca.iiaaiont

c. 'lhe facility* will cperate in Ccnformity witb tbe .

applicaticn,. as: _oded, tbe proviaiona of tb9 Act, and the* rwea* and regulationa of the cam*u~cn1=

o. *'lbere ia* reuanable. uaurances (i) that thll activiti*.

author 1-c1:* by. tbia. ~- aperating 1 icmM am be canductal without endanger .ing tbe heel tb am. safety of* tb& pmlic, .

and (ii) that aucb activitie* will be conducted in cmplimce with the rule* and regulatJana: of the* CC-iuiaft1 E. ,'t'Ublic SS1dce llec:trte .m c:e. GB £ .1 CJ14].ified* and the U.cenaeea are fJnanical.ly qualified to

• • • t.edmkally.

engage in the activitiea autbor bed by thia amencled. operating license in accordance with the rules aid reguUtions of tb9 CC11miuian1

. ~ . -.*, . .

• .~

• *. :he 1 i::ensees have satisfied the applic~le "Orovisions of 10 _c:?.. Part 140, "Financial Protection Require.iients and In=~~~1ty Aqreoe~~nts," of the Cor.mission's regulations~

~* lbe. i~s,~ancl! of this amencied operating licensP. will not oe in~~1cal to the conmen defense and security or to the heal t."1* and safety of t."le publ ic;

!-i. After ;..*~ighing t.'le environmental, economic, tot!Chnic.al, and ot:.~r cenefits of the facility against environ.~ental and ot.~er costs and considering available alternatives, the issuance of .~endment No. 3 to Facility Operating Licens@ so. DPR-70 subject to tile conuitions for protection of the environment set forth in t."le Technical Specifications, A?;>P.ndix s is in accordance with 10 CFR Part 51 Cand with former Appendix o to 10 CE'R Part 50) of the Caimission's regulations and all applicable requir~r.lfl!nts have been satisfied; and I. 'Ihe recl!i~, possession, and use of source, byproduct and spec'ial. nuC'lear iilater: ial as author i::ed by this ml!nded -------.....

license will b4 in accordm'.ICe with th!! C0auission' s regulations in 10 CFR Parts 30, 40, and 70, inc:ludinc; °'"'~

--\a ~'Jc&

10 CFR S4!Ctions 30.33, 40.32, and 70.23 and 70.31. N vl'~A(L L\.-.C..

2. Facility Operating Liceri No. DPR-70, issued to the PUblic Service Electric an4 Gas C Philadelphia Electric Canpany, Delmarva Po\.\ler and Light cattpany, and Atlantic City Electz: ic canpany, is nereey anM!nded in its entirety, to read as follows:

.1.. 'lbis &llel'\d4d license applies to the salem Nuc:ler Generating StatieH, unit NO. l, a pt"euurind water 11uelear reactor and associated equipmnt (the facili owned b the *

• , ilade ph a Electric c:cmpmy, D'!lmarva Power and Lic;ht Canpany, and Atlantic City Electric Canpany and operated by Pl:IBlie° serviee Electric and GM O?mp.r.- 'Ihe facility is located on the ~l ic:ants' site in Salem county, New JerSfi!'/, on the so;,ithern end of Artificial Island on the eut bank of the Delaware River in Lowitr Alloways Creek Townshi9, and is desc:ri:ed in the NFinal Safety Analysis Report* as supple21tted and amended (Amendments 10 thr()U9b 39) and the Enviro:i.'2ntal Report as supplemented and lml!nded (Amendments 1 t..,rou;h 3) *

a. SubjK"t to t.iie conditions and requirf!i:H!llts incorporated herein, the ~~~ission ner:eby licenses

- J -

~lie Servic:e clectrL~ w Ga* can,any..Q.

~iladeltztia C:lectr ic: C:an?any, DeLllarva 'rowr and L1gnt Canpany, and Atlantic City Elec:tric: Can"Cany

~ possess tne facility at t:ne designated location ln Salem County, i-lew Jer3f!!Y, in accordance with me procedures and limitations set fortn in this a.">>nded l ic:ens.:

( 2) ~1 ie Sierv tee. SlKtr ic ,.,,., .-;as Ccmpa~oursuant to Section 104b of tne Act and lll CFR Part 50, "Licensing of Production and ~tilization Facilities,* to possess use and operate tne facility: '

CJ) a.M!lie Servic=e ilec:trie Mfi Gu Smpanyf:oursuant to tn* Aet and 10 CFR Part 70, to receiv., posus1 and use at any time special nuclear Mteri&l u rNCtor fu.l, in accordance with the lL'DitatiOftl for stora11* Ind anDunts required for ructor op.ration, u de1erib9d in tne Pinal Safety An&lysis Report, u su;plemnted and amended,

( 4) , pursumt to tile Ac:t and 10 CFR Part.a 30, 40 w 70 to rec:eift, pcssea and ua at any tim 1ny byproduct, IOUE'ce am sp9CW ru:lear 111ater ial u sealed mutron sourc:e1 for reactor startup,* 9Hled aources for rector.

instrumentation and radiAticn manitoring equipmtnt:

cal.iDratian, and u fiuion det8c:tor1 in .mmu u r_equired, i!Ubl.lc SHYia Electric and GM 0*.~wt to the ACt Ind 10 CR Parta JO, 40 lld 70 to r-=eive, t:m*** 11111 um in _11mmt1 u required my byproduct, 9GUrC8 or 1p1eial ru:lear ut8r ial vitnaut r*tr ic:ticn to c:bmJcal or pny.ical tora, tor a.pl* -.119u or inatrm111t c:alibraticn or UICC!Atlld witb rldU.Ctiv.

appar atm or caaipclwnta 1 md

• 1ti01ic Slzvh:w !leculc: ml CH G : ~wt to tn. Act Ind 10 en Parta JO and 70, to p::isau, but nat aparatm, suc:h ayproduct Ind s.-=i&l iu:lear

=ater!Ua * :uy c. produc.d by tbe os-r*ticn of tlw fcility.

c. niis a1IMded l ic:ena shall c. di 1 to contain m:I la subject to t.'W c:oneitiona specified in th* following COmiuion r9gU11ticna i.'1 10 CFR c.n.~ter I: Rvt 20, secticn 30.34 of hrt JO, Section 40.41 of Part 40, Sec:tionl 50.54 Alli 50.59 ot Part 50, Ind Sec:ticn 70.32 Of Pare 701 ~

i..I subject ta all awlicabl* prcwi.licnl of the Act ..s to tb9 rul*s, regulations, and orders of the C:amiuion nov or t.r*attar in ettect1 and is suc)ect to the additional candition.s s;.cilied or L~r;iorated

~lc1t:

N\lL1.~ -\..\,.(.

Pow*r Laval PW!l1ic S*rvige 11ea~~a and Sae Seap~is authorized to operate the facility at a st*ady state reactor core power level not in excess of 3411 m9qawatts (on* hundred percent of rated core power). Prior to attaining the one hundred percent power l*v*l, Public Service Electric and Gas Company shall complete the preoperational teata, startup tests and other it9Jlls idanti~ied in Attachment 1 to thi* amended license in the sequence specified. Attachment 1 i* an integral part of this amended license.

(2) Technical Specifications The Technical Specification* contained in Appendicea A and B, as revised through Amendaent No. are hereby incorporated in th* license. The

-* licensee shall operate the facility in accordance with th* Technical Specification*.

(3) Deleted P*r Amendment 22, 11-20-79 (4) Les* than Four Loop Operation Pm:.lie iePU'S:c* E1wct::ic aud Saa Semp~hall not operate the reactor at power level* above P-7 (as defined in Table 3.3-1 of Specification 3.3.1.1 of Appendix A to thi* license) with less than four (4) reactor coolant loop* in operation until safety analyse* for las* than four loop operation hav. been submitted by the licensees and approval for less than four loop operation at power levels above P-7 ha* been granted by by Amendment of this license.

~hall implement and maintain in effect all provisions of the approviid ~ir~ pre~~etion program as cleacri.bed in th* Updated Final Safety Analyai* Report, and as_ approved in the NRC Safety Evaluation Report dated November 20, 1979, and in ita supplement*, subject to the following proviaion:

~y make change* to the approved fir* protection program without prior approval of th* Commis*ion only if those changes would not adversely affect th* ability to achieve and maintain safe shutdown in th* event of a fire.

Janua:y 19, 1999 (Reference NRC Letter March 17, 1986)

- 4b -

(10) Additional Conditions The Additional Conditions ontained in Appendix C, as revised through Amendment No.19

• are hereby incorporated into this license. ~lie Ser~iee Electric aRd Gas C;~pant9'$hall operate the facility in accordance with the Additional Conditions.

/

Amendment No.192

Agreement that require a report fr m on source data from an operating faci ity have been incorporated into NUREG's BR-0006 and 0007 so that t NRC may collect the needed

• data for transmittal to the IAEA. should follow these NUREGs precisely in reporting inventory changes. A complete response to the reporting instructions in the NUREGs will satisfy the requirements specified in Code 10.

7. FACILITY ATTACHMENT CODE 6.2.2 The phrase "precise forecasts" means best estimates. These required concise notes should be dispatched to the NRC at least 40 days in advance of a projected 6 month operational programming.

8. FACILITY ATTACHMENT CODE 6.3.1 & 6.3.2 See response to Code 6.1.1 and 6.1.2 above.

9. FACILITY ATTACHMENT CODE 7.9 The specific facility health and safety rules and regulations to be observed by the Agency's (IAEA) inspectors, as specified in Paragraph 54 of the design information as of October 10, 1986, provided by the U.S.A. mean:

Agency inspectors who have previously visited the facility will be informed as necessary at the time of entry into the facility of health and safety rules and ad hoc rules as might be required in view of a special situation that has occurred at the facility since the inspector's last visit to the facility. The briefing will be of a short duration, not to exceed 30 minutes, covering topics deemed relevant by the licensee.

Agency inspectors who have not previously visited the facility will be informed as necessary at the time of entry into the facility of health and safety rules and ad hoc rules as might be required in view of a special situation that has occurred at the facility. The briefing will be of an appropriate duration, not to exceed three hours, and consist of topics deemed relevant by the licensee.

In either case, the licensee should take into account the Agency inspector's prior training, expertise and experience. In neither case shall the Agency inspector be subject to any form of evaluation or testing by facility representatives or representatives of the U.S. Government.

For health and safety reasons, Agency inspectors will be escorted by qualified facility personnel at times deemed appropriate by the

• licensee.

Amendment No. 81

10. TERMINATION Pursuant to the provisions of 10 CFR 75.41, the Commission will° inform the licensee, in writing, when its installation is no longer subject to Article 39(b) of the principal text of the US/IAEA Safeguards Agreement. The IAEA Safeguards License Conditions incorporating Code 7. of the Facility Attachment as pa.rt of NRC License DPR-70 will ?e terminated as of the date of such notice from the Commission. However, since the IAEA may elect to maintain the licensee's installation under Article 2(a) of the Protocol, provisions equivalent to Codes 1. through 6. of the Facility Attachment (with possible appropriate modifications) may still apply, and accordingly all other IAEA Safeguards License Conditions to NRC License No. DPR-70 will remain in effect until the Commission notifies the licensee otherwise. If this option is not selected by the IAEA, the Commission will then notify the licensee that all License Conditions pertaining to the US/IAEA Safeguards Agreement are terminated. ---:--- ~

J. RELOCATED TECHNICAL SPECIFICATIONS ~f& ~OU- ~

pm,lic Se%viee Eleetrie aaa Gas Ce~a~all relocate certain technical specification requirements to licensee-controlled documents as described below. The location of these requirements shall be retained by the licensee.

a. This license condition approves the relocation of certain technical specification requirements to licensee-controlled documents (UFSAR), as described in the licensee's applications with the staff's safety evaluation approval and Amendment No. as noted below:

Licensee's Applications Safety Evaluations Amendment Nos.

September 25, 1996 January 30, 1997 189 Implementation shall include the relocation of technical specifications requirements to the appropriate licensee-controlled document as identified in the licensee's application.

FOR THE NUCLEAR REGULATORY COMMISSION Original Signed by Roger S. Boyd Roger S. Boyd, Director Division of Project Management Office of Nuclear Reactor Regulation Attachments:

1. Incomplete Preoperational Tests, Startup Tests, and Other Items Which Must Be Completed

2. Page Changes to Technical Specifications, Appendix A Date of Issuance: December 1, 1976 Amendment No. 189

License Nos. DPR-70 Docket Nos. 50-272 DPR-75 50-311 NPF-57 50-354 Salem Unit 2 Changes References to Public Service Electric and Gas Company or PSE&G are being replaced

.with PSEG Nuclear LLC in the following Sections:

License section, page number Action Description Heading, page 1 Change Public Service Electric and Gas Company to PSEG Nuclear LLC Paragraph 1E, pa~e 1 Change Public Service Electric and Gas Company to PSEG Nuclear LLC Paragraph 2, page 2 Add "and transferred to PSEG Nuclear LLC" after Public Service Electric and Gas Company Paragraphs 2B(l) through (6), pages 2 and Change Public Service Electric and Gas 3 Company to PSEG Nuclear LLC (in six places)

Paragraphs 2C(l), (10) and (26), pages 3, 7 Change Public Service Electric and Gas and21 Company to PSEG Nuclear LLC (in four places)

Paragraph 2G, page 22 Change Public Service Electric and Gas Company to PSEG Nuclear LLC (in two places)

Paragraph 2H, page 23 Change Public Service Electric and Gas Company to PSEG Nuclear LLC Paragraph 21, page 23 Change Public St'(tvice Electric and Gas Company to PSEG Nuclear LLC Paragraph 2N, page 24 Change Public Service Electric and Gas Company to PSEG Nuclear LLC

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• OOCXET MO. S0-311 SALEM NUCL~A GENERAT!NG STATION. UNIT ~O. 2 FACILITY OPERATING LICENSE Lfcens* No. OP~-75

1. The Nuclear Regulatory COllll'fssion (tne Co11111ss1on} navfng found that:

A. 111* app11c1t1on for license f11td by Public S1rv1c1 Eltct~fc and Gas Comp1ny for itself and tJ'l1 Ph11adelpn11 E1ectrfc C**"Y* Otirn&rva Power and Light c~ny and Atl1nt1c City Eltctrfc CC!llt'1ny (herein-after reft"9<1 to IS tne 11censHs} camplfes with tne standards and r-tqu 1r._nu of ttle AtDlli c Energy Act of 1954. as a.nded ( tht Act)

• and the ca..1ssfon 1 s '"9gU1atfons set forth tn 10 CFR Chaptar I and all requ1rtd not1fic1t1ons ta otner agencies or l>od1ts n1v1 b11n duly

nade; S. ConstJ"UCtion of ttle S*l .. ~ucl11r O.nerating Station. Un1t ~o. 2 (f1c111ty) n1s bffft substlnt11111ea11pl1ted1n conformity with Con-struction P11'111t No. CP'R-53 and the app11cat1on. as amended. the pro-vi s1ons of the Act 1nd tlte regulations of tne Coam1ss1on;

c. T'h* fac111 t;t wt 11 operaia 1n confor"'ll'f ty w1 th tft* app11 c1t1on. as Uleftdecl. the prov1s1ons of tne ACt. and tne regulat1ons of th*

Com1ss1on;

o. ,,,.,.. 1s 1"91Sonl!l1t assurance: (1) tn1t tfte act1vft11s author1:1d 'Y tZt1s op*r1t1n9*11canse ein b* condUc~ad without end1n91rin9 tnt n1altn and s*ftty of US* puD11c. and (11) tn1t sudl act1v1t1ts w;11 be :on-duc~td in camp11anc1 wftn the Co11111ss1on's rf1Ul&t1ons sat fortti ~n

~a CF~ Chapter I;

~ -?~111; Serv1;1 Electric IP~ C*I CeflJA~ technically qualified to en9199 f n the act1 v; t1 es autn*ari :ad by ttt1 s oper!ti ng 11 c1nse in accora.nce ..,; tn tne CQllll1 ss; on' s r-egu 11 t1 ans set fortn ; n 10 CFil Chapter I;

• --...... 4-* ~---

..... ~---*~.'

i ;~.

'--~-*

~

~

- z-F* The 1f ClnSffS are f1nanci&11 y qMI 1f ff ed ta engage f n the !Ctfvi t1 es autnorfz1d by tn1s lfc1ns1 fn accord1nc1 witll the Con111issfon's

~gulatfons set fortn fn 10 CFR Cnapur I; G. The lfcens ..s h*v* s1t1sffff tn* applfcaclt provisions of 10 CF~

?art 140, Financial ?ratectfon Requirements and Indtmnity ~greements,

of the Co11111ission 1 s regulations; H. ihe issuance of this operating lfc1ns1 will nat be inimical to trie common c1f1ns1 and s.curity or ta t:ne n11lt11 and s1f1ty of tn* puolfc; I. ~ft1r weighing the envfronmentll, tcona111c, tlcnnfcal and other

~*n*fits of the fac111ty against envfra11111nt1l and otfter costs and considering av1f l1bl1 altarn1tiv1s, tne fssu1nc1 of Facf lf ty Operating Lfc1ns1 Mo. OPR-75 subject to th* cond1t1ons for protection of the*.

envf rorwne~t set forth nel"lin fs fn accardlnc1 witll 10 CFR Part SO

~ppend1x O of tlle Colll1ss1on*s regulations and all applfcaDl*

1"9quire111nts have been s1tisf1td; and J. The r-9Cl1pt, possession, and use of source, byproduct and special

• z.

nucl11r 1111ur'hl as autllor1zed b1 thh l1c1nse will tie f n accor~nce wf t!t tt11 Cami ss1on 1 s l"lgU 11 t1 ans f n 10 CFR Pa,.ts 30 , 40 and 70

• Punu1nt ta approval tt1 tne Nuclffr R19ul1tory Ca1111ss1on 1t lftfft1ngs on J anuu*y 14, 1981, Apr11 28, 1981, and M_, 19, 1981, the L1c1nse for Fue 1*Loadf ng and 1.0-.-Power THt1 ng fssued on Apr11 18, 1980 1s supernded by Facflfty Operat1ng 1.fcense.No. OPR-75 l'lerttt1 fssu1d ta Public , ~rr.1J Sen'f c1 E1tctr1c and G*s Ce11p1 Philictelpttfa E1tctr1c C011P1n1 1 "'-

0 .\r.. -.,

01ln1u*v1 Power and L1gttt COllP.n and Atlantic City Eltctrfc CQ11p1ny ~ f~G-( 11 c;nsns) to f"91d i i fG11GWi: N1Jt\e ...r L\.. c.....

A. Th1s license aP,1111 to tfte S1l.. Nucl11r Gene,.1t1ng Stlt1an, Unit

~o. Z, 1 pr"9ssurtzld wau.- nuclt1r r91Ctor and assocfltH equip*nt

( tll* f1c111 ty), owned bJ tlle Hc1ns11s. Tlte fac11f ty 1s 1ocaud on tn1 sauttlern tnd of Art1f1c11l Island on tM 111t bank of th* Oelaw1" River fn L'*lr A11a.11s Cr'ftk Township fn S*l .. County, New J1,.uy and f s descrfbM 1n ate Ffnal S*f*ty Analysis lt9'0rt as suppl ... nttd and amndH 1nd tlle £nY1roM1nUl lt9'ort as suppl . .nttd and amnC11d.

• a. SubJICt ta tfte cand1t1ons and requirBlnU 1nco~aratad h1,..1n, tl11 CQllll'f ssfon hll"lbJ lf c1nses:

P~blie S1~ic1 E1ttiriG and G11 c~~h11adalph1a E1tctr1c Cor.ll)1ny, 0111111"1 Powe.- and t.ignt COllPMY anca ~tlant1c Ci ey Electric C~1ny ta ::iossess tn* factlf ty at tn* tjes1gnaud 1oca-t1 on in Sa 1* County, ~- J ,,.,.,, t n accal"dlnc* wt th ':ft* pro-c1<1Ur9S and lfm1tlt1ons set tar'tft f n tn1s lfcens*;

N vc.\~ ..r

~tr11-c-1.-.'"Tt"CT-rl"R'f-t--~Hirts-~e~. pursuant ta Sect 1on tne Act and 10 CFR Par't SO, ~oomest1c: ~1cens1ng of Pl'"Oduct1on and Ut111zat1o~ Fac111t1ts,~ to possess, use and operate tne fac11fty at tne des1gn*~ 1ocat1on in Salem County, New Jersey, fn ICC:l)r"dlnct 'llfitft tne 1flll'ftat1ons set fortn fn tnfs license;

( 3) , pursuant to the Act ancS 10 CFR Pal"'t 70, to rectf vt, possess and ~s* at any t1me sgecial nuc111r 1111t1rhl as rtactor fuel, fn accordanc1 *itJ'I tnt Hm1ta-t1ons for storage and amaunts requ1rtd for r11ctor operation, as dtscr1bed fn the Ffn11 Safety An11ys1s R1pol"'t, as suppltmtnttd and amndld;

~t-1-t~S.-n-cr-ttm~'C""lmcrtin--ea~~. pursuAnt to tne Act and 10 CFR P11"'ti 30, 40 and 70, to rte11v1. possess and use at any t11111 1ny byproduct, source and spte1a1 nuc111r ~ter111 as sealed neyti-an SOUl'"CIS fer reactor sUl"'tUp, s111td SOUl'"CH for reactor fnstl'"Ull9ni.t1on and rad1at1on mon1toring equ1p119n~ c11fbrat1on and as fhs1on deUCtoM fn amounts H requ1rtd; PuDl 1.C Sen1 Cl i1 K'1'~C aft~ GIS Cc_,t~ursuAnt to tne. ~ct and 10 Crl P1P'ts 30, 40 ind 70, to 1"tC11v1, possess and us1 f n amounts as '"9qu1rld any byproduct, source or specf11 nuclear 1111tar11l *1ttlaui ,..stJ-1ct1on to cn..1c1l or pnys1ea1 to,,.., for s...,11 an11ys1s or fnstJ"Ulllnt c11fb~at1on or assoc11t1d -1tn rad1o*ct1ve 1pp1r1tu1 o~ campontnts; and

~te Sen1c:1 Elecir1c 1nd GH C;mp1~r1u*nt to the Act and 10 CFR Part: 30, ~ 1r.d 70, ta possess, but Roi ieO*rata. such by-product and spec111 nuclur *teri11s H *Y be produced by the operation of ttll rac111ty~

c. This l1c1ns1 sn111 be ~d ta conu1n and 1s subJtet to th*

conditions spec1ttecl tn tile COlll1ss1on's regul1t1ons set for1:1! fn 10 CFR Chapter I ind ts suDJect to 111 app11clb11 provisions of the

,i,ct and to the rules, 1"94JU1*t1ons and ordeP't of tne Cam1ss1on now or hereafter tn tfftet; *nd fs subject to th* add1t1on1l cond1t1ons sp.c1f1ecl or tnco,,,orated below:

r.iiu1-.. Power l.t'lel P..U011c Ser"'f1c* Eltcir1c *nd ~** Ga111**"Y (PSEJ~ autnor'fzed to operate tfte fac11ft"J at st11cy state fe&c~r core ?O*tr levels not tn excess of 3411 1111~watts ( ttltl"'!llll).

(d) C011pl1t1 and auditable records llUSt be available and

~1ntained at a central location which describe the environ*ntal qualification 1111thod used for all safety-related electrical equipment in sufficient detail to document the degree of compliance with the DOR Guidelines or NUREG-0588. Such records should be updated and maintained._current as equipment 1s replaced, further tested, or otherwise further qualified to document complete compliance by June 30, 1982.

(e) Within 90 days of receipt of the equipa1ent qualification safety evaluation, the licensee shall either (i) provide missing documentation identified in Sections 3 and 4 of the equipment qualification safety evaluation which will demonstrate cQ11pliance of the applicable equipment with NUREG~0588, or (ii) co1111it to corrective actions which will resu*1t in docU111ntation of ca11pl 1ance of appl 1cable

• equipment with NUREG-0588 no later than June 30, 1982.

(10) Eire Protection

~hall implement and maintain in effect all provisions of the approved fire protection program as described in the Updated Final Safety Analysis Report, and as approved in the NRC Safety Evaluation Report dated Novellber 20, 1979, and in its supplements, subject to the following provision:

~lo-All" 1111 uk1 changes to the approved fire protect 1on program without prior approval of the Coa1ission only if those changes would not adversely affect the ability to

~ch1=ve ind =i1nta1n safe shutdown in the event of a fire.

AmendMnt No.,¥, ..JS': 117 l

-:.21 -

(n) Revised Small-Break Loss-of-Coolant-Accident Methods

{Section 22.3. II.K.3.30)

PSE&G shall comply with the requirements of this position as specified.jn NUREG-0737, "Clarification of TMI Action Plan Requirements."

(o) Compliance With 10 CFR Part 50.46 (Section 22.3. JI.K.3.31)

PSE&G shall perform plant-specific calculations using NRC-approved models for small-break loss-of-coolant accidents (LOCAs) to show compliance with 10 CFR Part 50.46. PSE&G shall submit these calculations by January 1, 1983, or one year after NRC approval of LOCA analysis models, whichever is later, only if model changes have been made.

(p) Emergency Suoport Facilities {Section 22.3. III.A.1.2)

PSE&G shall maintain in effect an interim Technical Support Center and an interim Emergency Operations Facility until

• . (26) such time as the final facilities are complete.

f ~E(,. N'VC. l~p.n.. \_ \....(_

D. An exemption from certain requirements of Appendix J to 10 CFR Part 50 is described in the Office Qf Nuclear Reactor Regulation's Safety Evaluation Report, Supplement No. 4. This exemption was authorized by law and will not endanger life or property or the common defense and security and is otherwis~ in the public interest. The exemption, therefore, remains in effect. The granting of the exemption was authorized with the issuance of the License for Fuel-Loading and Low-Power Testing, dated April 18, 1980. The facility will operate, to the extent authorized herein, in conformity with the application as amended, the provisions of the Act, and the regulations of the Cormiission.

~****

Amendment No. 175

~- Tiie 11c1ns1ts shill fully fmoltf"ent and ~;nt*i" f" tfffct *11 PP'Ov1s1ons of tht C01T111ts1on**Pcroved chystca1 s1curity, quird tr11n1n9 *rid au111fic1t1on, *nd s1f1qu1r~s cont1r.91ncy pla"s 1nclud1"9 amena1n1nts m1d1 ~ursu1nt to prov1s1o"s ~f tht

~1sc1ll1n1oc..s Allen~nts 1nd Starch R1qu1r .... nts r1v1s;ons to 10 C~A 73.55 {51 FA 2781; i~d 27822) ind to the tut~or1tv of 10 CFA 50.90 and 10 CFA so.s*(p). Tll1 plans, wh1ch conti1n StfPqu1rds Infol"'tftlt1on prcr1ctld under 10 CFA 73.:t, art ent1tltd: "Sal .. Nuch*1r Gentr&tfng Stltfon Pl'lys1c1l Steurity

?lan,* with rtv1sfons submitted thP'Ou9h Stotftftbtr 4, !9!7; 11 S1l* Huclur Gt,,_rat1n9 Stlt1on 6u1rd Tr11n1n9 and Q\i111f1c1t1on Plan,* with rtv1s1ons submfttld thr-cug~ S1ot1t11b1r 4, 19871 and *s11 .. ~uc111r Gentr1t1n9 Station S1f19u1rds Cont1nqency P11n,* w1th revisions sutmitt1d thr-cu9" Otc..O.r '., 1~98. C~in~1s ITlld* f n 1ccord1nc1 w1t~ 10 CFR 73.55 shill ~ 111pl ... nted 1n acr ~d1nc1 with the sc~~lt set forth thert1n.

F. A tff!QC rary u1111pt1 on fr~ ~tnt!"'& 1 Ots 1gn Cr'f tar'f en S7 found f n Apgena1x A to LO CFR Pal'"'t SO is d*scr1btd fn th* Office of Nuclear R11ctor ~~ula t1on's S1f1ty Ev1tu1t1on RtiJol'"'t, Suppt ...nt No. 5, Stet1cn 6.Z.3.1. This ex1111ot1on ts authartzld by 11W and w111 not 1nd1n91r ltf* or progero:y or ti'lt collllOn defense 1nd 1<<ur1 ty &nd f s othtr"W1. st f n tne pub: c f nte!"'est.

iht ex111tpt1on', tl'ttr"'9fo,,, fs l'ltr.ty grantld and shall r!tft&in fn tfft-.':t tnl"oug" tl't* first rtfutlfng ouuge u discussed 1n Stet'fon 6.Z.3.1 of Suoolement S to the S~ftty Ev1lu1t'fon Report. rhe granting of the extmot'fon fs 1uthor1ztd wittt tl'tt fssu1nc1 of tht Ftc'flfty Opu*1t1nq

~~ctn SI, di Ud ~ay ZO, 1981. Tht hc11 f ty w111 001r1t1, to tl'lt ex~nt autl'lor'f:td htrtfn, in confor"'111ty wittt th* apglfcat'fon as aniendtd, the pr-ov1s1ons of ttlt Act, and tne r99ul1t1ons of th*

Conmi ss 'f on.

G. ~fs 1ictnH fs subject to ~* fo11ow1ng &dd1t1onat cond1t1on for tne prottct1 on of tnt 1nv1 l"'Otnnt:

9efor-e en919'f na 1n 1dd1t1on1l construct'fon or 001rat'f~n1l act1v'f t1ts wn1e1'1 may result 1n an tnY1r"'Or91nt11 1~aC"t ttl&t was not 1v1lu1ttd

~Y ti'lt Ca1111ssfo", ~hall _o,...P'i--t and r"'ICOM an 1nv'fr-aN1e1:ul

!valult'fon of sudl act1v1ty. When the 1v1lu1t1°" 1nd1c1-,s that sucP'I activity 1111 sult fn 1 s1gn1ffcant adn!9s* tnv'fl"e"":"Nntll imt11~ tl'l&t was n 1valu1tld, or thl~ fs s1gnif1can~1y :1"11ttr ~~an

~&t rv1lu1':.t'd fn Fina*, *Envfror'elt-* :.&1 Stu.111ent or- :. .' adc1u~:.im

':l'ltrtta, h&l pl"'Ovfde 1 wrlttlft en;u1t1on ~f suc:l'I acth*; .~t!i and ~Uin or 10, :-enl fl"'O* e.1 Oirect:r of '4uch1r ~HC"!OI'"

~~ulatf on.

Amendment No. 59

• If PSE1ct9'i>lans to remove or to make significant changes in the normal operation of equipment that contr~ls the amount of radioactivity in effluents from the Salem Nuclear Generating Station, the NRC shall be notified in writing regardless of whether the change affects the amount of

• radioactivity in effluents.

I. ~all report any violations of the requirements contained in Section 2, Items C.(3) through C.(25), E*. F** and G of this license within 24 hours2.777778e-4 days <br />0.00667 hours <br />3.968254e-5 weeks <br />9.132e-6 months <br /> by telephone and confirmed by telegram, mailgram, or facsimile transmission to the Director of the Regional Office, or his designee, no later than the first workir1 day following the violation, with a written-followup report within 14 days.

J. The licensee shall innediately not:;J the Co11111ission of any accident at this facility which could result in an unplanned release of quantities of fission products in excess of allowable limits for normal operation established by the Co11111ission.

K. The licensee shall have and maintain financial protection of such type and in such amounts as the Co11111ission shall require in accordance with Section 170 of the Atomic Energy Act of 1954, as amended to cover public liability claims.

L. The licensee is authorized to defer certain eighteen-month surveillance items from the dates required by Technical Specifications 4.0.2(a) and 4.7.10.2(c). These surveillances shall be completed prior to startup following the first refueling outage. The provisions of Technical Specifications 4.0.2(b) and 4.7.10.2(c) are not changed. The affected items are identified in the Safety Evaluation accompanying Amendmerrt No.

14 issued October 22, 1982 and this license change.

M. This license is effective as of the date of issuance and shall expire at midnight April 18, 2020.

Amendment No. 14, l&, 194, 1 72

• • N. Relocated Technical Spec1f1cations

--Pu&Hl-c-5et-vtee--Eteci~&-4WS.....fiif5-llielll11'81~5sh a11 relocate certain techn i ca 1 specification requirements to licensee-controlled documents as described below. The location of these requirements shall be retained by the licensee. *

a. This license condition approves the relocation of certain technical specification requirements to licensee-controlled documents (UFSAR),

as described in the licensee's applications with the staff's safety evaluation approval and Amendment No. as noted below:

Licensee's Applications Safety Evalyations Amendment Nos.

September 25, 1996 January 30, 1997 172 Implementation shall include the relocation of technical specifications requirements to the appropriate licensee-controlled document as identified in the licensee's application.

FOR THE NUCLEAR REGULATORY Cotf41SSION Original Signed by Edson G. Case Edson G. Case, Acting Director Office of Nuclear Reactor Regulation

Attachment:

Appendices A &B Date of Issuance: May 20, 1981 Amendment No ~ 172

License Nos. DPR-70 Docket Nos. 50-272 DPR-75 50-311 NPF-57 50-354 Hope Creek Changes References to Public Service Electric and Gas Company or PSE&G are being replaced with PSEG Nuclear LLC in the following Sections:

License section, page number Action Description

. Heading, page 1 Change Public Service Electric and Gas Company to PSEG Nuclear LLC Paragraph IE and footnote, page 1 Change Public Service Electric and Gas Company to PSEG Nuclear LLC (in two places)

Paragraph 2, page 2 Add "and transferred to PSEG Nuclear LLC" after Public Service Electric and Gas Company Paragraph 2A, page 2 Change Public Service Electric and Gas Company to PSEG Nuclear LLC (in two places)

Paragraphs 2B(l ), (3 ), (4 ), (5) and (6), Change Public Service Electric and Gas pages 2 and 3 Company to PSEG Nuclear LLC (in five places)

Paragraphs 2C(l), (2), (5), (7), (8) and (14), Change Public Service Electric and Gas pages 3-6 Company to PSEG Nuclear LLC (in seven places)

Paragraph 2F, page 7 Change Public Service Electric and Gas Company to PSEG Nuclear LLC

UNITED STATES NUCLEAR REGULATORY COMMISSION WASHINGTON, D. C. 20555 ATLANTIC CITY ELECTRIC COMPA~Y DOCKET NO. 50-354 HOPE CREEK GENERATINr, STATION FACILITY OPERATING LICENSE License No. NPF-57

1. The Nuclear Regulatory Conmission (the Conmission or the N~C) has found that:

A. The application for a license filed by the Public Service Electric &

Gas Company, acting on behalf of itself and Atlantic City Electric Company (the licensees), complies with the standards and requirements of the Atomic Energ.v Act of 1954, as amended (the Act), and the Conmis-sion's regulations set forth in 10 CFR Chapter I, and all required notifications to other agencies or bodies have been duly made; B. Construction of the Hope Creek Generating Station (the facility)

• C.

has been substantially comoleted in confonnit.Y with Construction Pennit No. CPPR-120 and the aoplication, as amended, the provisions of the Act and the regulations of the Commissioni The facility will operate in confonnity with the application, as amended, the provisions of the Act, and the regulations of the Conmission (except as exempted from compliance in Section ~.n. below);

D. There is reasonable assurance: (i) that the activities authorized by this operatin~ license can_be conducted without endangerin~ the health and safety of the public, and (ii) that such activities will be conducted in compliance with the Comnission's requlations set forth in 10 CFR Chapter I (excep~ as exempted from compliance in Section ?..O.

below);

• E. is technically qualified to engage in the activities authorized by this license fn accordance with the Conmission's regulations set forth in 10 CFR Chapter I; F. The licensees have satisfied the applicable provisions of 10 CFR Part 140, "Financial Protection Requirements and Indemnity Aqreements,* of the Conmission's regulations; G. The issuance of this license will not be inimical to the cOllll'IOn defense and security or to the health and safety of the public;

• PYbl1e Service Eleetr1e &G1s Comp1~ authorized to act as agent for Atlantic City Electric Company and has exclusive responsibility and control over the physical construction, operation and maintenance of the facility.

• H.* After weigh'fnq the environmental, economic, technical, and other benefits of the facility against environmental and other costs and considerinq available alternatives, the issuance of Facility Operatfno License No. NPF-57, sub~ect to the conditions for protection of the

• environment set forth in the Environmental Protection Plan attached as Appendix B, is in accordance with 10 CFR Part 51 of the Commission's regulations and all applicable requirements have been satisfied; and I. The receipt, possession, and use of source, byproduct and special nuclear material as authorized by this license will be in accordance with the Commission's regulations in 10 CFR Parts 30, 40 and 70.

2. Based on the foregoinq findinqs and approval by the Nuclear Reaulatory Comnission at a meeting on July 21, 1986, the License for Fuel Loadfnq and Low Power Testing, License No. NPF-50, issued on April 11, 1986, is super-seded by Facili~y Operating License NPF-57 her~hy issued to Puhlic Service Electric &Gas Company nd Atlantic City Electric Company (the licensees),

to read as follows: ~e& 'llc.l~At. \.....'-t:..

A. This license applies tn the Hope Creek Generatin~ Station, a boilfn~

water nuclear reactor, and associated equipment (the facilit.vl owned by PtieHc S~n1Ga ElectP1c &- Gas CempaRY4ind Atlantic City Electric 1--~----. ompany. The facility is located on the licensees' site on the east bank of the Delaware River in Lower Alloways Creek Township, Salem County, New Jersey. The facility is located approximately eight miles southwest of Salem, New Jersey and is described in the Ptlhlie Set-vice-<-

E+eetrie &Ras CompaAy'~Final Safety Analysis Report, as supplemented and amended, and in the Environmental Report, as supplemented and amended.

B. Subject to the conditions and requirements incorporated herein, the Cornni ss ion hereby 11 censes :-

Public Ser~1ee Electrie &Sas CempaAy (PSE~ursuant to Section 103 of the Act and 10 CFR Part 50, to possess, use and operate the facility at the above designated location in Salem County, New Jersey, in accordance with the procedures and limitations set forth in this license; (2, Atlantic City Electric Compan.v, pursuant to Section 103 of thP.

Act and 10 CFR Part 50, to possess the facility at the des19nated location 1n Salem County, New Jersey, in accordance with the procedures and limitations set forth in this license; (3l ~ursuant tn the Act and 1n CFP. Part 70, to receive, possess

...._____ and use at any time special nuclear matPrial as reactor fuel, in accordance with the limitations for storage and amounts reouired for reactor operation, as described in the Final Safety Analysis Report, as supplemented and amended;

(4) ~rsuant to the Act*and 10 CFR Parts 30, 40 and 70, to

• receive, possess, and use at any time any byproduct, source and special nuclear material as sealed neutron sources for reactor

• startup, sealed sources for reactor instrumentation and radiation monitoring equipment calibration, and as fission detectors in amounts as required; (5) ~rsuant to the Act and 10 CFR Parts 30, 40 and 70, to receive, possess, *and use in amounts as required any byproduct, source or special nuclear material without restriction to chemical or physical fonn, for sample analysis or instrument calibration or associated with radioactive apparatus or components; .and

~ursuant to the Act and 10 CFR Parts 30, 40 and 70, to possess, but not separate, such byproduct and special nuclear materials as may be produced by the operation of the facility.

C. This license shall be deemed to contain and is subject to the conditions specified in the Comnission*s regulations set forth in 10 CFR Chapter I and is subject to all applicable provisions of the Act and to the rules, regulations and orders of the Comnission now or hereafter in effect; and is subject to the additional conditions specified or incorporated below:

(1) Maximum Power Level

~authorized to operate the facility at reactor core power levels not in excess of 3293 megawatts thennal (100 percent rated power) in accordance with the conditions specified herein.

Technical Specifications and Environmental Protection Plan The Technical Specifications contained in Appendix A, as revised through Amendment No. 20 1 and the. Environmental Protection Plan contained in Appendix B,.are hereby incorporated into the license.

~hall operate the facility in accordance with the Technical Specifications and the Environmental Protection Plan.

(3) Inservice Testing of Pumps and Valves (Section 3.9.6, SSER No. 4)*

This License Condition was satisfied as documented in the 1etter from w*. R. But 1er ( NRC) to C. A. McNei 11

• Jr. ( PSE&G) dated December 7, 1987. Accordingly, this condition has been deleted.

• fhe parenthetical notation following the title of many license conditions*

denotes the section of the Safety Evaluation Report and/or its supplements wherein the license condition is discussed.

• • Amendment No. 20

• (4)

Inservice Inspection (Section 6.6, SER; Sections 5.2.4.3 and 6.6.3, SSER No. 5)

a. PSE&G shall submit an inservice inspection proqram in accordance with 10 CFR 50.55a(g)(4) for staff review by October 11, 1986.

b. Pursuant to 10 CFR 50.55a(a)(3) and for the reasons set forth in Sections 5.2.4.3 and 6.6.3 of SSER No. 5, the relief identified in the PSE&G submittal dated November 18, 1985, as revised by the submittal dated January 20, 1986, requestina relief from certain requirements of 10 CFR 50.55a(g) for t~e preservice inspection program, is granted.

Solid State Logic Modules

~hall continue, for the life of the olant, a reliabilit~

program to monitor the oerformance of the Bailey 862 SSLMs installed at Hope Creek Generating Station. This program should obtain reliability data, failure characteristics, and root cause of failure of both safety-related and non-safety-related Bailey 862 SSLMs. Th~

results of the reliability program shall be maintained on-site and made available t.o the NRC upon request.

(6) Fuel Storaqe and Handling (Section 9.1, SSER No. 5)

a. No more than a total of three (3) fuel assemblies shall be out of approved shipping containers or fuel assembly storage racks or the reactor at any one time.

b. The above three (3) fuel assemblies as a group shall maintain a minimum edge-to-edge spacing of twelve (12) inches from the shipping container_array and the storage rack array.

c-. Fresh Fuel assemblies, when stored in their.shipping con-tainers, shall be stacked no more than three (3) containers high.

(7) Fire Protection (Section 9.5.1.8, SSER No. 5; Section 9.5.1, ssER No. 6)

~hall implement and maintain in effect all provisions of the approved fire protection program as described in the Final Safety Analysis Report for the facility through Amendment No. 15 and as described in its submittal dated May 13, 1986, and as approved in the SER dated October 1984 {and Supplements 1 through 6) subject to the follow:n' provision:

• ~ay make changes to the aporoved fire protection progr~m without prior approval of the Co11111ission only if those changes would not ~dverselv affect the ability to achieve and maintain safe shutdown in the event of. a fire.

Amendment No. 40

- s; -

(8) Solid Waste Process Control Prooram (Section 11.4.?, SER; ,

Section 11.4, SSER No. 4)

'----::::>~hall obtain NRC approval of the Class B and C sol id waste process control program prior to processing Class R and C solid wastes.

(9) Emeraency Planri~ng (Section I3.3, SSER No. 5)

In the event that the NRC finds that the lack of progress in completion of the procedures in the Federal Emergency Manaoement Agency's final rule, 44 CFR Part 350, is an indication that a ma.ior substantive problem exists in achfevinq or maintaf nin~ an adequate state of emergency preparedness, the provisions of 10 CFR Section 50.54(s)(2) will apcly.

(IO) Initial Startup Test Proaram (Section 14, SSER No. 5)

Any changes to the Initial Startup Test Proqram nescribed in Section I4 of the FSAR made in accordancP. with the provi~ions of 10 CFR 50.59 shall be reported in accordance with 50.59(b) within one month o~

such change.

(11) Partial Feedwater Heatinq (Section IS.1, SER; Section 15.1, SSER No. 5; section 15.1, ssER No. 6)

The facility shall not be operated with reduced feedwater temperature for the purposP. of extending the nonnal fuel cycle.

After the first operatinq cycle, the facility shall not be operated with a feedwater heating capacity that would result in a rated power feedwater temperature less than 400°F unless analyses sup-porting such ooeratio~ are suhmitted by the licensee and approved by the staff.

(12) Detailed Control Room Design Review (Section IR.I, SSER No.5)

a. PSE&G shall submit for staff review Detailed Control Room Design Review Sunmary Reports II and III on a schedule consistent with, and with contents as specified 1n, its letter of January 9, 1986.

b. Prior to exceeding five percent power, PSE~G shall provide temporary zone markings on safety-relaterl instruments in the control room.

• (13)

Safety Parameter Display System !Section 18.2. SSER No. Sl Prior to the earlier of 90 days after restart from the first refueling outage or July 12, 1988, PSE&G shall add the following parameters to the SPDS and have them operational:

a. Primary containment radiation

b. Primary containment isolation status

c. Combustible gas concentration in primary containment

d. Source range neutron flux (14) Additional Conditions The Additional Conditions contained in Appendix C, as revised through Amendment No. are hereby incorporated into this license. Pi2blic Service. Eleet~iQ *nd Qaa eell'lpeny>ihall operate the facility in accordance with the Additional Conditions.

D. The facility requires exemptions from certain requirements of 10 CFR Part so and 10 CFR Part 70. An exemption from the criticality alarm requirements of 10 CFR 70.24 was granted in Special Nuclear Material License No. 1953, dated August 21, 1985. This exemption is described in Section 9.1 of Supplement No. 5 to the SER. This previously granted exemption is continued in this operating license. An exemption from certain requirements of Appendix A to 10 CFR Part so, is described in Supplement No. 5 to the SER. This exemption is .a schedular exemption to the requirements of Gene~al Design Criterion 64, permitting delaying functionality of the Turbine Building

• Circulating Water System-Radiation Monitoring System until 5 percent power for local indication, and until 120 days after fuel load for control room indication (Appendix R of SSER. S) . Exemptions from certain requirements of Appendix J to 10 CFR Part SO, ~re descri~d i:a Supplement No. S to the SER. These include an exemption from the requirement of Appendix J, ~empting main steam isolation valve leak-rate testing at 1.10 Pa (Section 6.2.6 of SSER S); an exemption from Appendix J, exempting Type C testing on traversing incore probe-*.

system shear valve* (Section 6.2.6 of SSER S); an exemption from Appendix J, exempting Type C testing for in9trwnent line* and lines containing exce** flow check valves (Section 6.2.6 of SSER S); and an exemption from Appendix J, exempting Type C testing of thermal relief valve* (Section 6.2.6 of SSER S). These exemption. are authorized by law, will not present an undue risk to the public health and safety, and are com1iatent with the coDlllOD defen.e and aecurity. The*e exemptions are hereby granted. The special cirCUl'll9tances regarding each exemption are identified in the referenced section of the safety evaluation report and the *upplements thereto. The*e exemptiona are granted pursuant to 10 CPR 50.12. With the*e exemptions, the facility will operate, to the extent authorized herein, in conformity with the application, as amended, the provisions of the Act, and the rules and reg\llationa of the Conmi**ion.

Amendment No. *u, 97, 104

• E. The licensee shall fully implement and maintain in effect all provisions of the Conunission-approved physical security, guard training and qualification, and safeguards contingency plans including amendments made pursuant to provisions of the Miscellaneous Amendments and Search Requirements revisions to 10 CFR 73.55 (51 FR 27817 and 27822) and to the authority Of 10 CFR 50.90 and 10 CFR 50.54(p). The plans, which..contain Safeguards Information* protected under 10 CFR 73.21, are entitled: "Hope creek

• Nuclear Generating Station Physical Security Plan,"

with revisions submitted through September 4, 1987; "Hope Creek Nuclear Generating Station Guard Training and Qualification Plan," with revisions submitted through September 4, 1987; and "Hope Creek Nuclear Generating Station Safeguards Contingency Plan," with revisions submitted through December 2, 1986. Changes made in accordance with 10 CFR 73.55 shall be implemented in accordance with the schedule set forth therein.

F. Except as otherwise provided in the Technical Specifications or Environmental Protection Plan,~

shall report any violations of the requirements contained in Section 2.c of this license in the following manner: initial notification shall be made within 24 hours2.777778e-4 days <br />0.00667 hours <br />3.968254e-5 weeks <br />9.132e-6 months <br /> to the NRC Operations Center via the Emergency Notification System with written followup within thirty days in accordance with the procedures described in 10 CFR 50.73(b), (c), and (e).

G. The licensees shall have and m~intain financial protection of such type and in such amounts as the Commission shall require in accordance with Section 170 of the Atomic Energy Act of 1954, as amended, to cover public lial:>ility claims.

H. This license is effective as of the date of issuance and shall expire at midnight on April 11, 2026.

FOR THE NUCLEAR REGULATORY COMMISSION

- original signed by H.R. Denton -

Harold R. Denton, Director Off ice of Nuclear Reactor Regulation

Enclosures:

l. Appendix A - Technical Specifications (NUREG-1202)

• 2. Appendix B - Environmental Protection Plan Date of Issuance: July 25, 1986 Amendment 17 I