ML20011D660
| ML20011D660 | |
| Person / Time | |
|---|---|
| Site: | Grand Gulf  |
| Issue date: | 12/14/1989 |
| From: | Office of Nuclear Reactor Regulation |
| To: | |
| Shared Package | |
| ML20011D655 | List: |
| References | |
| NUDOCS 8912280188 | |
| Download: ML20011D660 (14) | |
Text
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SAFETY EVALUATION BY.THE OFFICE OF NUCLEAR REACTOR REGULATION S_UPPORTING ANENDMENT WO. n TO FACILITY OPERATING LICEhSE NO. NPF-29 i
SYSTEM ENERGY RESOURCES. INC.
GRAND GULF NUCLEAR STATION. UNIT 1 r
DOCKET h0. 50-416
1.0 INTRODUCTION
By letter dated August 15, 1969, as supplemented by letters dated August 22, September 22, September 27(2 letters), October 27, October 30 November 21, and November 30, 1989 System Energy Resources, Inc. (the licensee), requested an amendment to facility Operating License No. NPF-29 for the Grand Gulf Nuclear Station, Unit 1 (GGNS-1 or the facility). The proposed amendment would change the facility operating license condit1or.s Technical Specifications and Environmental Protection Plan to reflect the transfer of authority to control and operate GGNS Unit 1, from System Energy (E01). Resources. Inc. (SERI or System Energy) to Entergy Operations, Inc.
Proposed amendments have also been 4
fileo to reflect the transfer of authority to operate Waterford Steam Electric Station No. 3 (Waterford 3) and Arkansas Nuclear One, Units 1 and2(ANO-1&2) toe 01. The ownerships of these nuclear plants would not be changed.
For GGNS-1, SERI owns or holds leases for 90% of the facility and South Mississippi Electric Power Assocation (SMEPA) owns 10%
of the facility.
Louisiana Power and Light Company (LP&L) owns Waterford 3 and Arkansas Power and Light Company (AP&L) owns ANO-1&2.
Entergy Operations, Inc., would be a new company and a subsidiary of Entergy i
Corporation, formerly known as Middle South Utilities, Inc.
E01 would operate and maintain GGNS-1 AN0-182 and Waterford 3.
The nuclear staff of each of the facilities would be transferred to E01 and only those activities requiring imediate attention would be proposed for the necessary changes in the initial consolidation under E01.
The consolidation of the nuclear staff under E01 is being proposed for the benefits enumerated by the licensee.
These benefits are sumartzed as follows:
1)
E01 would have a repository of system nuclear operating expertise and experience. Consolidation into one nuclear operating company l
would enhance public safety and economic operations.
2)
E01 would be better able to provide a consistent philosophy of operation of the system nuclear units.
This focused philosophy can be used to achieve excellence in all aspects of nuclear operation.
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2 3)
The consolidation would allow more effective communication and use of system nuclear operating experience.
4)
Certain non-nuclear support functions would become specialized and focused on the requirements of a nuclear operation company and would thereby be more effective.
5)
Creation of a system-wide nuclear operating company would contribute to a higher sustained level of empicyee performance, provide a broader base for more competitive environment for upper management candidates, provide an environment in which all employees would be more highly motivated toward high performance, and provide greater opportunity for career progression. More specifically, consolidation would make salary structures, career path policies, and procedures internally consistent.
The information provided by the licensee is to support the transfer of operating responsibility to E01.
The attainment of the above benefits will cepend on the licensee's (or E01's) development and implenentation of effective programs and controls.
Early in the review the NRC expressed the need for the licensee to keep the public and other agencies informed of the proposed transfer of operations to E01.
By letter dated September 22, 1989, the licensee outlined their efforts in this regard.
The NRC staff also contacted the designated State Official for GGNS.] and discussed the proposed transfer.
The notice of consideration of issuance of this license amendment was published in the Federal Register on September 6, 1989.
The submittals made after the notice was published provide supplemental information to previously submitted information.
The notice of consideration accurately described the license amendnent request and the additional information does not affect the substance of the requested information.
The staff's review of the application addresses those issues necessary for both the issuance of the license amendment pursuant to 10 CFR 50.90 and for approval of transfer of control of licensed activities pursuant to 10 CFR 50.80.
2.0 EVALUATION
_ Operating Agreen.ents The staf f evaluated the capability of the consolidated organization to implement NRC requirements after the transfer of the control of licensed activities from the owners to E01. The proposed Operating Agreenent between SERI and E01 is contained in the licensee's submittal dated-September 27, 1989.
The proposed Operating Agreement delineates the responsibilities in operating the plant commensurate with NRC requirements, including those contained in Operating License Conditions. After issuance of the license amendment and the effective date of the transfer to E01, l
1 1
. j the NRC will normally comunicate with SERI through E01 and any changes to the Operating Agreement needed to fulfill NRC requirements will be a SERI and E01 matter but shall not influence or delay implementation of NRC requirements.
Management and. Technical Qualifications 1
This requestea change requires revision to Section 6 of the Technical I
Specifications and the Environmental Protection Plan to reflect the transfer of licensed activities from SERI to E01.
These revisions are acceptable.
In the proposed E01 organization, the nuclear organization for operating GGNS-1 will remain the same with the only change being that the senior nuclear officers of SERI (Vice-President Fuclear Operations and Vice-President, Nuclear Engineering and Support) will report directly to the Executive Vice-President and Chief Operating Officer of E01. Therefore, engineering and operating organizations will be transferred essentially intact to E01.
Note that operating responsibility for ANO-1&2 and Waterford 3 would also be transferred to E01.
We find the requested change acceptable as it meets the acceptance criteria of Section 13.1 of NUREG-0800.
Financial. Considerations The ownership of the facility and all rights to electric power from the facility will remain with SERI and SMEPA.
In addition, as stated on page 20 of SERI's submittal dated August 15, 1989, "All costs for the operation, construction, maintenance, repair, decontamination and decommissioning incurred or accrued are liabilities of System Energy and SMEPA when incurred or accrued and are borne in proportion to their respective ninety and ten percent undivided interests in Grand Gulf Unit 1."
The staff notes, however, that Article V, Section 5.1 of the proposed Operating Agreement between SERI and E01 as transmitted by letter dated September 27, 1989, suggests that SERI may not agree to pay foroperationandcapitalimprovementcoststhatexceedeither(1)the annual budget for the facility to which SERI and E01 are to agree by i
November of the year prior to the budget year or (2) the maximum amounts
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to be plan. paid within the parameters of the then-current E01 five-year business Notwithstanding this, Article XI. Section 11.5 provides that neither i
E01 nor SERI are permitted to delay or withhold payment due and owing under the proposed Operating Agreement except that SERI shall have the right to make any contested payments under protest.
The staff understands the provisions contained in Sections 5.1 and 11.5 of that proposed Operating Agreement taken together do not contradict SERI's commitment, as referenced above, to pay for all costs for the operation, construction, maintenance, repair, decontamination and decommissioning of GGNS-1.
The staff further expects that any changes to the proposed Operating Agree-ment between E01 and SERI will continue with these same understandings.
t SERI is currently subject to the wholesale rate jurisdiction of the Federal Energy Regulatory Commission.
Since SERI is an electric utility, it does not have to provide additional information to the NRC to demonstrate its financial qualification to carry out the activities for which the license amenoment is sought.
The staff believes that there will be no financial consequences adversely affecting safety f rom allowing E01 to assume exclusive responsibility for making safety decisions.
The economic benefits which the licensee I
anticipates from E01's operation of GGNS-1 are not expected to be gained j
at the expense of public health and safety given SERI's continuing comitment to pay the costs, including safety-related costs, of GGNS-1.
Thus, the staff concludes that the financial consequences of the proposed action will not adversely affect protection of public health and safety.
i f
Antitrust Considerations The license amendment request transferring the operation of Grand Gulf Unit 1 and the construction of Grand Gulf Unit 2 from SERI to E01 is 1
subject to antitrust review pursuant to Section 105c of the Atomic Energy Act, as amended. Notification of receipt and a request for comments on antitrust issues pursuant to this amendment, as well as requests for similar transfers involving the Waterford 3 and ANO Unit 2 nuclear units, were published in the Federal Reaister on November 1, 1989 (FR Vol. 54, 46168). Coments were received from a group of wholesale electric customers (Wholesale Customers) of the Arkansas Power & Light Company.
Pursuant to a license a'mendment request dated September 2, 1986, Mississippi Power & Light Company (MP&L) and SERI have agreed to be bound by the existing antitrust license conditions currently a part of the Grand Gulf licenses until the staff completes its antitrust review of the September 2, 1986 amendment request. Moreover, as a result of the review of the instant amendment request conducted by the staff, an additional license condition will be added to the Grand Gulf Unit 1 operating license and the Grand Gulf Unit 2 construction permit.
This new license condition is similar to the antitrust license condition added to Waterford 3 and ANO Unit 2, as a result of similar amendment i
requests, in that it holds the responsible party (s) accountable and responsible for the actions of their agents to the extent said agent's actions contravene the existing antitrust license condittors.
Wholesale Customers requested the NRC to either extend the existing license conditions imposed on the Grand Gulf facility to the entire multi-state territory served by Entergy Corporation's nuclear plants by imposing similar license conditions on ANO Unit 2 or extending the geographic area applicable to the Grand Gulf license conditions to l
encompass the entire area served by Entergy Corporation.
Wholesale Customers have not expressly addressed the competitive implications of the addition of E01 as operator of the facility.
They also have not
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l provided any other information which would allow antitrust conditions to be imposed upon ANO Unit 2 or new conditions imposed on Grand Gulf 1
s f extending the geographic reach of the existing conditions.
Formal antitrust reviews for facilities with operating licenses are only required when there are significant changes in the licensee's activities from the previous antitrust review.
In South Carolina. Electric and Gis Co. (Virgil C. Sunner Nuclear Station, Unit 1), CLI 60-28, II NRC 817, 820, 835 (1980), the Commission held, among other things, that significant changed circumstances occur when there are changes which would create or maintain a situation inconsistent with the t
antitrust laws; an antitrust review of these changes is warranted only
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when it would likely be concluded that the changed situation has i
negativeantitrustimp)lications.(South Texas Units 1&E, CLI 77-135, 5 NRC See also, Houston.Lichting and Power Co.
Customers contend that changeo circumstances have resulted from a FERC decision requiring the costs of Grand Gulf Unit I to be shared by all of the subsidiaries of Entergy Corp. However, they have not provided proof, nor furnished adequate explanation, as to why this accounting change constitutes ant 1 competitive activity or has adverse antitrust implications.
In addition, Wholesale Customers contend that license conditions are necessary since their existing wholesale contracts do not contain the type of terms and conditions that are included in contracts resulting from antitrust reviews associated with other nuclear facilities.
This assertion likewise does not constitute a changed circumstance since Wholesale Customers have not established how the absence of these terms in their contracts creates or maintains a situation inconsistent with the antitrust laws.
I In its review of the proposed amendment adding E01 to the AN0 Unit 2 license, the staff was concerned with what role E0I would play in marketing or brokering of power or energy from each of the Entergy Corporation nuclear units.
In an effort to avoid a formal antitrust l
review, the licensee has agreed to add an antitrust license conditon to its ANO Unit 2 license that will effectively preclude E01 from using power or energy from ANO Unit 2 in a manner that would 6ffect completion in bulk power services throughout AP&L's service area, i
Moreover, the same license condition will hold AP&L responsible and accountable for the actions of its agents, including E01, that pertain to marketing or brokering of poaer or energy from ANO Unit 2.
The staff teels this license condition will ensure that E0! will do no more than operate Ah0 Unit 2 and will not be involved in the competitive arena associated with marketing or brokering of power or energy. As a result of these actions, the staff has completed its antitrust review of this amendment request.
Two antitrust license conditions will be added to the Grand Gulf licenses:
a) MP&L and SERI shall comply with the antitrust conditions delineated in Appendix C.
NP&L is authorized to transfer its rights to possess, to use and to operate the facility of SERI, provided however, that until further authorization of the Commission, MP&L and SERI shall continue to be responsible for compliance with the obligations imposed on the licensees in these antitrust conditions, and l
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, l provided further that SERI accepts the right to possess, use and I
operate the facility subject to the outcome of the pending separate i
antitrust review of the antitrust considerations related to the spp11 cation cated September 2, 1986.
SERI is authorized to transfer its right to operate the f acility to E01.
b) MP&L ano SERI are responsible and accountable for the actions i
of their res pective agents to the extent said agents's actions r
contravene tae existing antitrust license conditions.
_ Restricted Data The licensee has andressed the limits on restricted data and other oefense infermetion and E01 agrees to the appropriate conditions of protection and processes. The current employees of SERI who are aware of and responsible for safeguarding information will transfer to EDI; therefore, no reduction in understanding or responsibility is expected.
Emergency Planning t
By letters dated August 15 ana 22, 1989, the licensee discussed the actions taken to ensure that the requirements of 10 CFR 50.47 and Appendix E will continue to be met.
As stated in the letters, the licensee iridicated that all officers of SERI will become officers of E01 and certain officers of AP&L and LP&L will also become officers of E01.
In addition, the present GGNS-1 nuclear operations and i
nuclear engineering and support organizations will be transferred essentially intact to E01.
The licensee statea that no substantive changes will be made to the existing emergency plan implemented by SERI or to the existing emergency planning organiza Mon. As stated in their letters, the licensee committed to establishing transition plans to ensure that support described in the existing emergency plan will be n.aintained throughout and beyond the transition to E01.
They also stated that SERI will take appropriate action with respect to existing agreenents for support from MP&L as well as other organizations and agencies not affiliated with the licensee.
This includes notifying these groups of the new relationship with the cwners.
Emergency planning support will continue to be supplied by SERl and MP&L.
Support i
agreements will be written to assure this support.
The majority of these changes will be implemented once the amendment is issued.
Based on the staff's review of the licensee's letters, the staff concludes that the actions being taken and proposed by the licensee during and after the transfer of operating and management responsibil-ities to E01 are adequate to ensure that E01 will continue to meet the j
requirements of 10 CFR 50.47 and Appendix E to 10 CFR 50 for the Grand Gulf huclear Station, Unit 1.
. Offsite Power The proposed amendment involves no changes in the ownership or design of the offsite power system or in its operation, maintenance or testing.
MP&L will continue to fulfill its current responsibilities to SERI with respect to compliance with General Design Criterion 17 (GDC-17) in Appendix A to 10 CFR Part 50.
GDC-17 specifically requires that there be assured sources of offsite power to the plant. Pursuant to this requirement SERI, E01 and MP&L will maintain and implement procedures and agreements such that adequate independent sources of offsite power will continue to be provided. MP&L has agreed to provide offsite power to SERI and to E01, as agent for SERI.
es necessary for operation of GGNS-1. MP&L will perform all routine switchyard activities excluding operation of the main generator switchyard breakers and 34.5kV breakers. Engineered safety features (ESF) Transformer i;o.12 and the main transformers will be maintained by E01. Also, the i
procedures and agreements will provide for the continuation of current arrangements for the operation and maintenance of the switchyard and associated transmission facilities. MP&L will obtain approval from EDI prior to implementing any changes to the equipment in the switchyard.
The staf f has evaluated the licensee's submittal regarding the proposed operating agreements between SERI, E01 and MP&L and has found that:
(1) three physicall required by GDC-17)y indepencent offsite power circuits (one more than
, would continue to be provided from the switchyard to the of fsite ESF distribution system; and (2) the configuration of circuits would not be changed.
The staff concludes that the configuration of the t
offsite power system would not be changed by the proposed offsite power l
agreement and would continue to meet GDC-17.
The proposed amendment is, therefore, acceptable with respect to assurance of offsite power sources to the plant.
Security.and Exclusion Area. Control The employees of SERI responsible for security will become E01 employees and EDI will continue to maintain and implement the security plans as previously found acceptable.
Some transition changes may be appropriate to reflect SERI. MP&L and E01 relationships but these changes should not decrease the effectiveness of the plans.
Control of the exclusion area involving security ano non-nuclear interfaces with SERI and MP&L has been adoressed by the licensee and includes considerations for normal and emergency access. Written procedures and agreements are appropriate to assure that NRC approved activities in and control of the exclusion drea by E01 would be maintained.
Quality Assurance Program E01 will assume responsibility for the t~ unctions associated with the GGNS-1 quality assurance program.
The organization, function, and structure of the GGNS-1 quality assurance department will not be affected by the license amendment.
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Training The licensee has stated that the training program, requirements, and maintenance of the Institute of Nuclear Power Operations accreditation for licensed and non-Itcensed operator training will continue as before
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but under E01.
License Conditions The licensee has proposed changes to the license conditions to reflect
^
the transfer frem SERI to E01 of the operation and maintenance of GGNS-1 i
and continued SERI and SMEPA ownership of GGNS-1.
In addition, License Conditions 2.B.f 3) was proposed to be changed to preclude transfer of spent fuel from one facility site to another site, and License Condition 2.C.(3) was proposed to be changed as discussed in the Antitrust Section e
above. We have reviewed these proposed changes to license conditions and
'i find them to be acceptable.
3.0 ENVIRONNENTAL-CONSIDERATION Pursuant 10 CFR 51.21, 51.32 and 51.35. an environmental assessment i
and finding of no significant impact was published in the Federal Register on Accordingly, basea upon the environmental assessment, the Commission has determined that issuance of this amendment will not have a significant effect on the quality of the human environment.
l
4.0 CONCLUSION
The Commission made a proposed determination that this amendment involves no significant hazards consideration, which was published in the Federal Recister (54 FR 37053) on September 6, 1989, and consulted with the 5 tate of Mississippi. No public connents or requests for hearing were received on the no significant hazards consideration.
Comments were received by letter dated November 30, 1989, from Mr. Z. Wilson represent 1rg the Cities of Benton, Conway, North Little Rock, Osceola, Prescott, and West Memphis, Arkansas and the Farmers Electric Cooperative Corporation on antitrust matters. Those comments are addressed in the antitrust section of the Safety Evaluation, and the State of Mississippi did not have any comments.
The staff has concluded, based on the considerations discussed above, that:
(1) there is reasonable assurance that the health and safety of l
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i the public will not be endangered by operation in the proposed manner, and (2) such activities will be conducted in compliance with the Connission's regulations and the issuance of this amendment will not be t
inimical to the connon defense and the security, or the health and safety of the public.
Principal Contributors:
L. Cohen N. Trehan F. Allenspach R. Wood W. Lambe L. Kintner i
Dated: December 14, 1989 s
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Docket flo. 50-416 Amendment to Indemnity Agreement flo. B-72 Arrendment No. 4 Effective
, Indemnity Agreement No. B-72, between Mississippi Power and Light Company, System Energy Resources, Inc., and South Mississippi Electric Power Association and the Nuclear Regulatory Commission tated July 15, 1981, as amended, is hereby further amended as follows:
The following named lictrsee "Entergy Operations, Inc."
is added to the indemnity agreement.
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FOR THE U.S. liUCLEAR REGULATORY C0!!illSSION CL n llY)kkkn/(Q Eileen M. McKenre, Acting Chief Policy Development and Technical Support Dranch Program Management, Policy Development and Analysis Staff Office of t<uclear Reactor Regulation Accepted 1989 Accepted
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Mississippi Power and Light System Ener5y Resources, Inc.
Company Accepted 1989 Accepted
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By DJ South flississippi Electric Entergy Operctions, Inc.
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Docket flo. 50-416 Arnendment to Indemnity Agreement No. B-72 Amendment No. 4 Effective
, Inden:nity Agreement No. B-72, between Mississippi Power and Light Con.pany, System Energy Resources, Inc., and South Mississippi Electric Power Association and the Nuclear Regulatory Commission dated July 15, 1981, as amended, is hereby further amended as follows:
i The followir.g named licensee "Entergy Operations, Inc."
is added to the indemnity agreement.
FOR THE U.S. NUCLEAR RECL'LATORY C0t! MISSION CAN
'1 L PUL Eileen li. McKenna, Acting Chief Policy Development and Technica? Support Branch l
Program Management, Policy Development and Analysis Staff Office of Nuclear Reactor Regulation Accepted
,1989 Accepted
, 1989 By Dy Mississippi Power and Light System Energy Pesources, Inc.
Company Accepted 1989 Accepted
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By By South Mississippi Electric Entergy Operations, Inc.
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Docket No. 50-416 Amendment to Indemnity Aareenent No. B-72 Amendment No. 4 i
Effective
, Indemnity Agreement No. B-72, between 1
Mississippi Power and Light Compar.y, System Energy Resources, Inc., and South tiississippi Electric Power Association and the t!uclear Regulatory Commission dated July 15, 1981, as amendt.d is hereby further amended as follows:
The following named licensee "Entergy Operations, Inc."
is added to the indemnity agreenent.
FOR THE U.S. NUCLEAR REGULATORY COMMISS10tl t C( A
)C CdL/[(R Qeen M. McKenna, Acting Chief Policy Development and Technical Support Brar.ch Prograta fianagement, Policy Desclopment and Analysis Staff Office of Nuclear Reactor Regulation Accepted
, 1989 Accepted
,1989 By By Mississippi Power and Light System Energy Resources, Inc.
Company Accepted
, 1989 Accepted
, 1989 By By South Mississippi Electric Entergy Operations, Inc.
Power Association
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Docket No. 50-416 Amendment to Indemnity Agreement ?!o. B-72 Amendn.ent No. 4 Effective
, indemnity Agreement No. B-72, between ilississippi Power and Light Company, System Energy Resources, Inc., and t
South 111ssissippi Electric Power Association and the Nuclear Regulatory Connission dated July 15, 1981, as amended, is hereby further amended as follows:
1 The fo11cwing named licensee "Entergy Operations, Inc."
is added to the indemnity agreement.
FOR THE U.S. NUCLEAR REGULATORY CCMillSS1071 00 R hl
//L /W-Eileen M. McKenna, Acting Chief Policy Development and Technical Suppert Branch Program itanagen(nt. Policy Development and Analysis Staff Office of Nucicar Reactor Regulation Accepted 1989 Accepted
,1989 i
By By l
liississippi Pcwer and Light System Energy Resources Inc.
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,1989 By By South Mississippi Electric Entergy Operations, Inc.
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Docket tio. 50 416 Amendment to Inderrnity Agreement No. C.72 Amendment No. 4 Effective
, indtrinity Agreement No. B-7?, between Mississippi Power and Light Conpany, System Energy Resources, Inc., and South Mississippi Electric Power Association and the Nuclear Regulatory Comission dated July 15, 1981, as arnended, is hereby further amended as follows:
The following named licensee "Entergy Operations, Inc."
is added to the indemnity agreement.
FOR THE V.S. NUCLEAR REGULATORY C0!! HISS 10N
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Eileen M. McKer r.a. Acting Chief Policy Developrnent and Technical Support Branch Program Nar:agement Policy Development end Analysis Staff Office of Nuclear Reactor Regulation Accepted 1989 Accepted
, 1989 Dy -
By-flississippi Power crid Light System Energy Resources, Ir.c.
Company Accepted _
,1989 Accepted
,1989 By By South itississippi Electric Entergy Operations, Inc.
Power Association