ML19351A069

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License NPF-9 for Facility
ML19351A069
Person / Time
Site: McGuire Duke Energy icon.png
Issue date: 06/12/1981
From: Harold Denton
Office of Nuclear Reactor Regulation
To:
Shared Package
ML19351A070 List:
References
TAC-46812, NUDOCS 8106250196
Download: ML19351A069 (19)


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DUKE POWER COMPANY DOCKET NO. 50-369 MCGUIRE NUCLEAR STATION, UNIT 1 FACILITY OPERATING LICENSE LICENSE NO. NPF-9 1.

The Nuclear Regulatory Comission (the Comission or the NRC) having found that:

A.

The application for license filed by the Duke Power Cogany (the licensee) coglies with the standards and requirements of the Atomic Energy Act of 1954, as amended (the Act), and the Comission'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 McGuire Nuclear Station, Unit 1 (the facility) has been substantially cogleted in conformity with Construction Permit No. CPPR-83 and the application, as amended, the provisions of the Act and the regu-lations of the Comission; C.

The facility will operate in conformity with the application, as amended, the provisions of the Act, and the regulations of the Comission; D.

There is reasonable assurance: (1) that the activities authorized by this operating license can be conducted without endangering the health and safety of the public, and (ii) that such activities will be conducted in cogliance with the Comission's regulations set forth in 10 CFR Chapter I; E.

The licensee is technically and financially qualified to engage in the activities authorized by this license in accordance with the Comission's regulations set forth in 10 CFR Chapter I; I

F.

The licensee has satisfied the applicable provisions of 10 CFR Part 140,

" Financial Protection Requirements and Indemnity Agreements", of the Com-mission's regulations; i

i G.

The issuance of this license will not be inimical to the comon defense and security or to the health and safety of the public; l

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After weighing the environmental, economic, technical, and other benefits e

of the facility against environmental and other costs and considering available alternatives, the issuance of this Facility Operating License No. NPF-9 (subject 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; I.

The. receipt, possession, and use of source, byproduct and special nuclear i

material as authorized by this license will be in accordance with the Commission's regulations in 10 CFR Parts 30, 40 and 70.

I Pursuant to approval by the Nuclear Regulatory Commission at a meeting on

2.. June 9,1981, the License for Fuel-Loading and Zero Power Testing issued on NPF-9 which is hereby issued to the Duke Power Company (the license, License January 23, 1981, as amended, is superseded by Facility Operating e) to read as follows:

A.

This license applies to the McGuire Nuclear Station, Unit 1, a pressurized water reactor and associated equipment (the facility) owned by'the Duke Power Co. (licensee). The facility is located on the licensee s site in Mecklenburg County, North Carolina, on the shore of Lake Norman approximately 17 miles northwest of Charlotte, North Carolina and is described in Duke Power Company's " Final Safety Analysis Report," as supplemented and amended, and. in its Environmental Report, as supplemented and amended.

B.

Subject to the conditions and requirements incorporated herein, the Commission hereby licenses Duke Power Company:

i (1) Pursuant to Section 103 of the Act and 10 CFR Part 50, to possess, use, and operate the facility at the designated location in Mecklenburg County,. North Carolina, in accordance with the limitations set forth in this license; (2) Pursuant to the Act and 10 CFR Part 70 to receive, possess and use at any time special nuclear material as reactor fuel, in accordance with the ifmitations for storage and amounts required for reactor operation, as described in the Final Safety Analysis Report, as supplemented and amended; ll i

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4 3-(3) Pursuant 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 moni-toring equipment calibration, and as fission detectors in amounts as required; (4) Pursuant to the Act and 10 CFR Parts 30, 40 and 70, to receive, possess and use in amounts as r=qutred any byproduct, source or special nuclear material without restriction to chemi:a1 or physical form, for sample analysis or instrument calibration or

-associated with radioactive apparatus or components; and (5) Pursuant to the Act and 10 CFR Parts 30 j4'O and 70, to possess, but not separate, such byproduct and special nuclear materials as may be produced by the operation of the facility.

(6) Pursuant to the Act and 10 CFR Parts 30 and 40, to receive, 'pos-sess and process for release or transfer such byproduct material as nay be produced by the Duke Power Company Training and Tech-nology Center.

C.. This license shall be deemed to contain and is subject to the conditions specified in the Commission's regulations, set forth in 10 CFR Chapter 1 and is subject to all applicable provisions of the Act and to the rules, 4

regulations, and orders of the Commission now or hereafter in effect; and is' subject to the additional conditions specified or incorporated j

below:

(1) Maximum Power Level The licensee is authorized to operate the facility at steady state reactor core power levels not in excess of 170 megawatts thermal (5% of-rated power).

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'(2) Technical Specifications and Environmental Protection Plan The Technical Specifications contained in Appendix A and the Environmental Protection Plan contained in Appendix B are herehy incorporated into this license. The Itcensee shall operate the facility in accordance with the Technical Specifications and the Environmental Protection Plan.

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Initial Test Program The licensee shall conouct the initial test program (set forth in Section 14 of the licensee's Final Safety Analysis Report, as amended) without making any modifications to this program unless i

sue,h modifications are in accordance with the provisions of 10 CFR i,

Section 50.59. In addition, the licensee shall not make any major modifications to this program.unless modifications have been identified and have received prior NRC approval. Major modifica-tions are defined as:

a.

Elimination of any test identified as essential in Section 14 of the Final Safety Analysis Report, as amended; b.

Modification of test objectives, methods or acceptance criteria for any test identified as essential in Section 14 of the Final Safety Analysis Report, as amended; c.

Performance of any test at a power level different from that described in the program, as limited by this license author-ization; and d.

Failure to co@lete any tests included in the described program (planned or scheduled) for power levels up to t

the. authorized power level.

(4) Fire Protection Program The licensee shall maintain in effect and fully implement all pro-visions of the approved fire protection plan and the NRC staff's McGuire Safety Evaluation Report Fire Protection Review in Supple-ment No. 2 to the McGuire Nuclear Station Safety Evaluation Report,.

dated March 1979. Duke Power Cogany shall cogly with Sections III.G. Fire Protection of Safe Shutdown Capability, including Section III.L. Alternative and Dedicated Shutdown Capability, as i

i appropriate; III.J. Emergency Lighting; and III.0, Oil Collection System for Reactor Coolant Pump, of Appendix R tr 10 CFR Part 50, i

dated Novenber 19, 1980.Section III.G and III shall be cogleted i

according to the following schedule (III.J hav' s been cogleted).

a.

Duke shall implement a Standby Shutdown Facility System to l.

assure shutdown capability during certain postulated fire events as indicated in Duke's letter, dated January 31, 1979.

E All required changes shall be completed three months after i

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. I the first refueling of Unit 1, but not later than 24 months after initial fuel loading of Unit 1.

b.

Duke shall perform required modifications to the oil collec-tion system and fire suppression system for the Reactor Coolant Pump (RCP) motor within three months after the first refueling of Unit 1 but not later than 24 months after initial fuel loading of Unit 1.

Prior to comercial operation the licensee shall complete to the satis-faction of the Office of Inspection and Enforcement all required fire protection items identified in Table 9.5-1 and Appendix B of Supplement 5 to the Safety Evaluation Report (NUREG-0422).

(5) Compliance With Regulatory Guide 1.97 In accordance with the schedule submitted by the licensee, or as directed by the Comission, the licensee shall implement modifications necessary to comply with Revision 2 of Regulatory Guide 1.97, "Instru-mentation for Light Water Cooled Nuclear Power Plants to Assess Plant Conditions During and Following an Accident," dated Decenber 1980 as modified by the licensee's comitments to NUREG-0588 and NUREG-0737.

(6) Steam Ger0rato'r Inspection Prior to start-up after the first refueling, the licensee shall install inspection ports in each steam generator or have an accept-able alternative for inspection. This condition references item 5.3.1 in SER Supplement 4, NUREG-0422.

(7) _ Environmental Qua]ification The licensee shall take the following remedial actions, or alter-native acceptable actions, with respect to the environmental qualification requirements for Class IE equipment (SSER #517.8):

(a) No later than June 30, 1982, all safety-related electrical equipment exposed to a harsh environment in the facility l

shall be qualified in accordance with the requirements of NUREG-0588, " Interim Staff Position on Environmental Qualification of Safety-Related Electrical Equipment".

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  • Reference is to the appropriate sections of the Safety Evaluation Report, Supplement No. 5 (NUREG-0422, April 1981)

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I (b). Pursuant to SECY-80-370, dated August 6,1980, comple'te and auditable records must be available and maintained at a central location which describes the environmental qualification method used for all safety-related electrical i

equipment in sufficient detail to document the degree of

- cogliance with NUREG-0588. Such records shall be updated and maintained current as equipment is replaced, further tested, or otherwise further qualified to document coglete cogliance no later than June 30, 1982.-

(c) Provide the NRC with a cescription -of the required equipment qualification corrective action no later than July 15, 1981.

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(8) Radioactive Waste Treatment System' Prior to initial criticality, the licensee shall ensure the opera-bility of radwaste system to the satisfaction of the Odfice of Inspection and Enforcement including:

(a) Cogletion of testing of the following systems; liquid rackaste treatment, gaseous radwaste treatment, auxili:ry building ventilation, and the radiation monitoring systems as tociated with the above systems; (b) Testins of the flow in the vicinity of the auxiliary building ventilation stack sample probe; (c)

Installation of an effluent flow rate monitor on the Unit i vent; (9) Piping System Reanalysis The licensee shall' provide the NRC with the re:;ults of its seismic

. system piping reanalysis within 90 days of the issuance of this j

license.- (SSER #5-3.7.2)

(10) Category I Masonry Walls Prior to startup following the first refueling or as directed by the Comission, the licensee shall evaluate all Category I Masonry Walls to final staff criteria and implement required modifications that are indicated by the evaluation.

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. (11) NUREG-0737 Conditions The licensee shall corrplete the following conditions to the satis-faction of the NRC. These conditions reference the appropriate items in Section 22.2, " Fuel-Loading and Low Power Testing Requirements",

t in SER Supplements 4 & 5. NUREG-0422.

'(a) Shift Technical Advisor (I.A.I.1)

The licensee shall continua to provide a fully-trained on-shift technical advisor to the shift supervisor.

(b) Independent.~.laty Engineering Group (I.B.1.2)

The licensee shall continue to have an onsite Independent Safety Engineering Group.

(c) Operating Activities (I.C.6)

-Prior to exceeding 1% power the licensee shall provide adequate procedures to verify the correct performance of the licensee's operating activities. These procedures shall be maintained by the licensee.

(d) Control Room Design (I.D.1)

The licensee shall complete the following conditions to the satisfaction of the Comission prior to resuming power operation after the first refueling:

1) Controllers with revised scales (0 at top and 100% at bottom) shall be replaced and signal reversing relays shall be l

incorporated where applicable.

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2) All applicable meter scales shall be permanently marke1.
3) The licensee shall rescale circular displays for clarity and eliminate double ranges on circular displays.
4) Strip chart selector switches which can be placed in an l

intermediate (no-selection) position shall be replaced.

5) Appropriate modifications to the normal and emergency lighting systems shall be made to ensure adequate illumination of the control room under, all operating conditions.

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i As a reference, these conditions are further described in I

Supplement No. 4 to the'SER (NUREG-0422), Appendix D, items 3b, 4a, 4f and 9b, respectively.

The licensee shall complete each of the following conditions to the satisfaction of the NRC by the times indicated. Each of the following conditions references the appropriate 1 tem in Section 22.3, " Full-Power Requirements", in SER Supplement 5, NUREG-0422:

a.

NSSS Vendor Review Procedures (I.C.7)

Prior to exceeding 5% power, the licensee shall document that the Westinghouse review of the power ascension test procedures is coglete.

j b.

TrainingDuringlow-PowerTesting-(I.G.1)

Prior to exceeding 5% power the licensee shall complete the required Special Tests and the low-power test training program.

The results of the test program shall be provided to the NRC within 30 days.

c.

Post Accident Sampling (II.B.3)

The licensee shall install a high radiation samling system for obtaining reactor coolant and containment atmosphere sampling under degraded core accident conditions without excessive exposure by January 1,1982.

d.

Training for Mitigating Core Damage (II.B.4)

Prior to exceeding 5% power the licensee shall coglete training for mitigating core damage.

e.

Auxiliary Feedwater System Evaluation (II.E.1.1)

. Prior to exceeding 5% power the licensee shall complete perfor-mance testing of the auxiliary feedwater system pumps and shall submit a report within 30 days after all tests are completed.

f.

Inadequate Core Cooling Instruments (II.F.2)

(1) The licensee shall install a reactor vessel wa.er level instrumentation system by Jan.1,1982;

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(2) Prior to exceeding 5% power the licensee shall install a full range in-core thermocouple temperature (2300* F) backup display; and (3) The licensee shall upgrade.or install an in-core thermo-couple monitoring system by January 1,1982.

g.

Anticipatory Reactor Trip (II.K.3.10)

Prior to exceeding 50% power the licensee shall complete the described turbine trip tests to verify that PORVs will not be challenged when the anticipatory trip bypass is in effect.

The licensee shall complete the following conditions to the satis--

faction of the staff by the times indicated. These conditions reference the appropriate item in Section 22.4, "NRC Actions"-in SER Supplement 5, NUREG-0422:

h.

Hydrogen Control Measures (II.B.7)

(1) For operation of the facility beyond January 31, 1982, the Commission must confirm that an adequate hydrogen control system for the plant is installed and will perform its intended function ~1n a manner that provides adequate safety margins.

(2) During the interim period of operation, the licensee shall continue a research program on hydrogen control measures and the effects of hydrogen burns on safety functions 1and shall submit to the NRC quarterly reports on that research program.

(a) The first quarterly report shall contain a detailed description of the Duke Power Company's program which shall generally conform to pertinent portions of the program outlined in "Research on Hydrogen Corbustion and Control Quarterly Report", Tennessee i

Valley Authority, Sequoyah Nuclear Plant, December 15, 1981, but which shall also include [but not be limited to] the following itens-1)

Improved celculational methods for containment i

temperature and ice condenser response to hydrogen combustion.

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2) Rasearch to ' address the potential for local detonation, i
3) Confirmatory tests on selected equipment exposed to hydrogen burns.
4) New calculations to predict differences between expected equipment. temperature environments and containment temperature.
5) Evaluate and resolvt any anomalous results occur-ring during the course of its ongoing test program.

(b) The results of these investigations will be provided to the staff for review in October 1981. A schedule for confirmatory tests.beyond this date will be provided con-sistent with the requirement to meet the January 31, 1982 deadline, Section (11)h(1) of the license.

The licensee shall complete each of the following conditions to the satisfaction of the NRC by the times indicated. Each of the fol-lowing conditions references the appropriate item in Section 22.5,-

" Dated Requirements" in SER Supplement 5, NUREG-0422:

i. Reactor Coolant System Vents (II.B.1) l Prior to exceeding 1% power the licensee shall provide information on procedures and testing including measures to veclude inadvertent i

operation;

j. Relief and Safety Valve Tests (II.D.1)

Prior to October 1,1981, the licensee shall provide documentation for relief valves, safety valves, and associated piping in accord-ance with the EPRI December 15, 1980 letter as approved by the NRC and shall qualify block valves by July 1,1982, and shall submit a report demonstrating said qualification; i

k.

Commission Orders on Babcock & Wilcox Plants, Subsequently l

Applied to all PWR Plants (II.K.2)

Prior to January 1,1982, the licensee as a participant in the Westinghouse Owners Group shall:

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.(1) Submit a detailed analysis of the thermal mechanical condi -

tions in the reactor vessel during recovery from small break LOCAs with an extended loss of all feedwater (II.K.2.13).

(2) Provide an analysis of the potential for voiding in the reactor coolant system during anticipated transients (II.K.2.17).

(3) Provide a bench mark analysis of sequential auxiliary feedwater flow to the steam generators.following a loss of main feedwater (II.K.2.19).

1.

Final Rec'ommendations of B&O Task Force (II.K.3)

.(1) With respect to installation of the anticipatory reactor trip (II.K.3.12), prior to exceeding 5f. rated power the licensee shall-install a trip that meets the stated criteria.

(2) With respect to a revised small break LOCA model, (II.K.3.30),

the licensee as a participant in the Westinghouse Owners Group

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shall, prior to January 1,1982, submit to the NRC a revised model to account for recent experimental data including data from the LOFT Test Facility and the Semiscale Test Facility.

m.

Upgrade Emergency Preparedness The licensee shall submit by July 1,1981 a description of how the augmented staffing guidance of Table B-1, NUREG-0654, Rev.1, will be met by July 1,1982.

(III.A.1-1, and Appendix C, page C-13).

n.

Upgrade Emergency Support Facilities (1) The' licensee shall submit by June 15, 1981 the conceptual design description of emergency response facilities in sufficient detail to describe how the guidance of NUREG-0696 will be met (III.A.2, and Appendix C, Section H, pageC-8)

(2) The licensee shall provide meteorological and dose assess-ment remote interrogation capability to meet the guidance of Appendix 2, NUREG-0654 Rev.1 as follows:

(1)a functional description of upgraded capabilities by January 1,1982,(2) installation of hardware and soft-ware by July 1,1982, and (3) full operational capability by October 1,1982.

(III.A.2, and Appendix C, Section i

H,pageC-8) 1 l

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4 (3) The licensee shall revise, prior t'o exceeding if, power, the emergency plan implementing procedures to incorporate the following in dose projections:

(a)- actual source terms, rather than design basis accident source terms.

l (b) realistic-meteorological conditions over the dose time period.

(c) actual containment pressure.

(III.A.2, Appendix C, and Section H, page C-8)

D.

The facility requires an exegtion from certain requirements of Appendix G to 10 CFR Part 50. This exenption is described in the Office of Nuclear Reactor Regulation's Safety Evaluation Report, Supplement No. 2

. and in Supplement No. 4.

This exemption is authorized by law and will

- m not endanger life or property or the comon defense and security and is otherwise in the public interest.' The exemption is, therefore, hereby granted. With the granting of this exemption, the facility will operate, to the extent authorized therein, in conformity with the application, as amended, the provisions of the Act, and the rules and regulations of the Comission; E.

The licensee shall fully implement and maintain in effect the physical security plan, entitled "McGuire Nuclear Station Security Plan", dated February 1,1978 as revised on July 26,1978 (Revision 2), August 23.-

1978 (Revision 3), Septenber 8,1978 (Revision 4), October 20, 1978 (Revision 5), October 12,1979 (Revision 6), March 24,1980 (Revision 7),

August 8,1980 (Revision 8), October 27,1980 (Revision 9), and as amended in accordance with the provisions of 10 CFR 50.54(p). The security. plan is being withheld from public disclosure pursuant to 10 CFR 'Section

'2.790(d).

F.

The licensee shall fully implement and maintain in effect all provisions of the Comission-approved Safeguards Contingency Plan, including amend-ments a_nd changes made pursuant to the authority of 10 CFR 50.54(p). The approved Contingency Plan, which was submitted pursuant to 10 CFR 73.40, consists of documents withheld from public disclosure pursuant to 10 CFR 2.790(d) and is identified as "McGuire Nuclear Station Safeguards Con-tingency Plan" submitted with letter dated March 23, 1979 as revised by i

L Revision 1, submitted with letter dated December 17, 1980. The Con-tingency Plan shall remain in effect as a condition of this license.

In i

addition, the licensee shall follow all provisions of the NRC-approved i

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. guard training and qualification plan entitled, "McGuire Nuclear Station.

Guard Training and Qualification Plan," dated August 7,1978, and as revised June 9, 1980 (Revision 1). The guard training and qualification plan shall remain in effect so as to provide for qualified guards as of the date of receipt of this' license.

G.

The licensee shall report any violations of the requirements contained in Section 2 Items C.(1), C.(3) through C.(11), E and F of this license within 24 houn by telephone and confirm by telegram, mailgram, or facsimile transmission to the Director of the Regional Office, or his-

-designate, no later than the first working day following the violation, with a written followup report within 14 days.

H..The licensee shall imediately notify the NRC 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'Comission.

I.

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

J.

Pursuant to an Order by the Atomic Safety and Licensing Board, dated April 23,1975, the Nuclear Regulatory,Comission incorporates herein the follcwing antitrust conditions:

a.

The licensee makes the comitments contained herein, recognizing that bulk power supply arrangements between neighboring entities normally tend to serve the public interest.

In addition, where there are net benefits to all participants such arrangements also serve the best interests of each of the participants. Among the benefits of such transactions are increased electric system relia-bility, a reduction in the cost of electric power, and minimization i' of the environmental effects of the production and sale of electric-ity.

Any particular bulk power supply transaction may afford greater benefits to one participant than to another. The benefits realized by a small system may be proportionately greater than those realized by a larger system. The relative benefits to be derived by the parties from a proposed transaction, however, should not be controlling upon a decision with respect to the n

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desirability of. participating in the transaction. Accordingly, the licensee will enter into proposed bulk power transactions of the types hereinafter described which, on balence, provide net benefits to the licensee. There are net ber.efits in a trans-action if the licensee recovers the cost of the transaction (as defined in subparagraph (1)(d) hereof) and there is no demon-strable net detriment to the licensee arising from the trans-action.

(1) As used herein:

(a) " Bulk Power" means electric power and any attendant energy, supplied or made available at transmission or sub-transmission voltage by one electric system to another.

(b) " Neighboring Entity" means a private-or public corpora-tion, a governmental agency or authority, a municipal-ity, a cooperative, or a lawful association of any of-the foregoing owning.or operating, or proposing to own or operate, facilities for the generation and transmis-sion of electricity which meets each of the following criteria: (1) its existing or proposed facilities are economically and technically feasible of interconnection with those of the licensee and (2) with the exception of munici'palities, cooperatives, governmental agencies or authorities, and associations, it is, or upon coninencement of operations will be, a public utility and subject to regulation with respect to rates and service under the laws of North Carolina or South Carolina or under the Federal Power Act; provided,- however, that as to assoc-iations, each member _ of such association is either a-public utility as discussed in this clause (2) or a nunicipality, a cooperative or a governmental agency or 4

authority..

(c) Where the phrase " neighboring entity" is intended to include entities engaging or proposing to engage only in the distribution of electricity, this is indicated by adding the phrase " including distribution systems."

(d) " Cost means any appropriate operating and maintenance

. expenses, together with all other costs, including a reasonaule return on the licensee's investment, which

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l are reasonably allocable to a transaction. However, no value shall be included for loss of revenues due to the l

loss of any wholesale or retail customer as a result of any transaction hereafter described.

The licensee will interconnect and coordinate reserves by (2)

(a). means of the sale and exchange of emergency and scheduled maintenance. bulk power with any neighboring entity (ies),

when there are net benefits to each party, on terms that will provide for all of the licensee's properly assignable costs as may be determined by the Federal Energy Regulatory Commission.and consistent with such cost assignment will allow the other party the fullest possible benefits of such coordination.

(b) Emergency service and/or scheduled maintenance service to be provided by each party will be furnished to the fullest

- extent available from-the supplying party and desired by the party in need. -The licensee and each party will pro-vide to the other emergency service and/or scheduled maintenance service if and when available from its own generation and, in accordance with recognized industry practice, from gener.ation of others to the extent it can do so without impairing service to its customers, in-

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cluding other electric systens to whom it has firm com-mitments.

(c) Each party to a reserve coordination arrangement will establish its own reserve criteria, but in no event shall the minimum installed reserve on each system be less than 15%, calculated as a percentage of estimated peak load responsibility. Either party, if it has, or has firmly planned, installed reserves in excess of the amount called for by its own reserve criterion, will offer any such excess as may in fact be available at the time for which it is sought and for such period as the selling party shall determine for purchase in accordance with reasonable ipdustry practice by the other party to meet such other party's own reserve requirements. The parties will provide such amounts of spinning reserve as may be acequate to avoid the imposition of unreasonable demands on the other part(ies) in meeting)the normal contingencies of operating its (their) system (s. However, in no cir-cumstances shall such spinning reserve requirement exceed the installed reserve requirement.

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< x (d) Interconnections will not be limited to low voltages when higher voltages are available from the licensee's installed facilities in the area where interconnection is desired and when the proposed arrangement is found to be techni-cally and economically feasible.

-(e) Interconnection and reserve coordination agreements will not embocty provisions which impose limitations upon the use or resale of power and energy sold or exchanged pursuant to the agreement. Further, such arrangements will not prohibit the participants from entering into other interconnection and coordination arrangements, but

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may include appropriate provisions to assure thac (i) the licensee receives adequate notice of such additional interconnection or coordination, (ii) the parties will

, jointly consider and agree upon such measures,ility of if any, as i

are reasonably necessary to protect the reliab the interconnected systems and to prevent undue burdens from being imposed on any system, and (iii) the licensee will be fully coupensated for its costs. Reasonable t

industry practice as developed in the area from time to time will satisfy this provision.

(3) The licensee currently has.on file, and may hereafter file, with the Federal Energy Regulatory Commission contracts with neighboring entity (ies) providing for the sale and exchange of short-term power and energy, limited term power and energy, economy energy, non-displacement energy, and emergency capacity and energy. The licensee will enter into contracts providing for the same or for like trans-actions with any neighboring entity on terms which enable the licensee to recover the full costs allocable to such transaction.

(4) The licensee currently sells capacity and energy in bulk on a full requirements basis to several entities engaging in the distribution of electric power at retail.

In addition, the licensee supplies electricity directly to ultimate users in a number of nunicipalities.

Should any such entity (ies) or municipality (ies) desire to become a neighboring entity as defined in subparagraph (1)(b) hereof (either alone or through combination with others), the licensee will assist J

in facilitating the necessary transition through the sale of partial requirements firm power and energy to the extent that, except for such transition, the licensee would othenvise be supplying firm power

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and energy. The provision of such firm partial requirements service shall be under such rates, terms and conditions as shall be found by the Federal Energy Regulatory Comission to provide for~ the recovery of. the licensee's cost. The licensee will sell capacity and energy in bulk on a full requirements basis to any municipality currently served by the licensee when such municipality lawfully engages in the

-distribution of electric power at retail.

(5)

(a) The licensee will facilitate the exchange of electric power in bulk in wholesale transactions over its trans-mision facilities (1) between or among two or more neighboring entities including distribution systems with which it is interconnected or may be interconnected in the future, and (2) between any such entity (ies) and any other electric system engaging in bulk power supply between whose facilities the licensee's transmission lines and other transmission lines would form a con-tinuous electric path, provided that permission to utilize such other transmission lines has been obtained.

Such transaction shall be undertaken provided that the particular transaction reasonably can be accomodated by the licensee's transmission system from a functional and technical standpoint and does not constitute the wheeling

, of power to a retail customer. Such transmission shall be on terms that fully compensate the licerisee for its cost.

Any entity (ies) requesting such transmission arrangements shall give reasonable notice of its (their) schedule and requirements.

(b) The licensee will include in its planning and construction program sufficient transmission capacity as required for the transacticns referred to in subparagraph (a) of this paragraph, provided that (1) the neighboring entity (ies) gives the licensee sufficient advance notice as may be necessary reasonably to accomodate its (their) require-ments from a functional and technical standpoint. and (2) that such entity (ies) fully cogensate the licensee for its cost.

In carrying out this subparagraph (b), however, the licensee shall not be required to construct or add transmission facilities which (a) will be of no demon-strable present or future benefit to the licensee, or (b) which could be constructed by the requesting entity (ies)

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. without duplicating any portion of the licensee's existing trans-mission lines,- or (c) which would jeopardize the licensee's ability to finance or construct on reasonable terms facilities l

needed to meet its own anticipated system requirements. Where l

regulatory or environmental approvals are required for the con-struction or addition' of transmission facilities needed for the transactions referred to in subparagraph (a) of this paragraph it j

shall be the responsibility of the entity (ies) seeking the trans-action to participate in obtaining such approvals, including sharing in the cost thereof.

(6) To increase the possibility of achieving greater reliability and econony of electric generation and transmission facilities, the licensee will discuss load proje;:tions and system development plans with any neighboring entity (ies).

(7) When the licensee's plans for future nuclear generating units (for which application will hereafter be made to the Nuclear Regulatory Comission) have reached the stage of serious planning, but before firm decisions have been made as to the size and desired completion date of the proposed nuclear units, the licensee will notify all neighboring entities including distribution systems with peak loads

. smaller than the licensee's that the licensee plans to construct such nuclear uni.ts. Neither the timing nor the information pro-vided need be sach as to jeopardize. obtaining the required site at the lowest possible cost.

(8) The foregoing comitments shall be implemented in a manner consis-tent with the provisions of the Federal Pr.wer Act and all other lawful local, state and Federal regulation and authority. Nothing in these comitments is intended to determine in advance the resolution of issues which are properly raised at the Federal Energy Regulatory Comission concerning such comitments, including alloca-tion of costs or the rates to be charged. The licensee will negotiate (including the execution of a contingent statement of intent) with respect to the foregoing comitments with any neighboring i

l entity including distribution systems where applicable engaging in or proposing to engage in bulk power supply transactions, but l

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. the licensee shall not be required to enter into any final arrange-ment prior to resolution of any substantial questions as to the lawful authority of an entity to engage in the transactions.

In addition, the licensee shall not be obligated to entar into a given bulk power supply transaction if: (1) to do so would violate,

.or incapacitate it from performing, any existing lawful contracts it has with a third party; (2) there is conteg oraneously available to it a conpeting or alternative arrangement which affords it greater benefits which would be nutually exclusive of such arrangement; (3) to do so would adversely affect its system operations or the relia-bility of power supply to its customers,_ or (4) if to do so would jeopardize the licensee's abilit to finance or construct on reason-able terms facilities needed to meet its own anticipated system requirements.

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This license is effective as of the date of issuance and shall expire at midnight on February 28, 2013.

FOR NUCl. EAR REGU ATORY COMMISSION A

o Harold R. Der. ton. Director Office of Nuclear Reactor Regulation

Attachment:

1.

Appendix A -

Technical Specifi:ations 2.

Appendix 8 -

Environmental Prctection Plan Date of Issuance:

!' UN 121981 J

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