ML20054M976

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Exemption from Requirement for Obtaining Property Damage Insurance
ML20054M976
Person / Time
Site: Humboldt Bay
Issue date: 06/29/1982
From: Harold Denton
Office of Nuclear Reactor Regulation
To:
PACIFIC GAS & ELECTRIC CO.
Shared Package
ML20054M975 List:
References
NUDOCS 8207150215
Download: ML20054M976 (3)


Text

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NtiCLEAR REGULATORY COMMISSION In the Matter of

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)

Pacific Gas and Electric

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Docket No. 50-133 Company

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(Humboldt Bay Power Plant,

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Unit No. 3)

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2 EXEMPTION 1.

The Pacific Gas and Electric Company (the licensee) is the holder of Facility Operating License No. DPR-7 which authorizes operation of the Humboldt Bay Power Plant, Unit No. 3 (Humboldt). This license provides, among other things, that it is subject to all rules, regulations and orders of the Commission now or hereafter in effect.

The Facility is a boiling water reactor rated at 63 ttv(e) at the licensee's site located near Eureka, California.

II.

The recently promulgated regulation,10 CFR 50.54(w), requires that each cormiercial power reactor licensee shall, by June 29, 1982, i

take reasonable steps to obtain on-site property damage insurance available at reasonable costs and on reasonable terms from private sources or to demonstrate to the satisfaction of the Commission that it possesses an equivalent amount of orotection covering the facility, provided. among other things, that "this insurance must have a minimum coverage limit no less than the combined total of (i) that offered by 8207150215 820713 PDR ADOCK 05000133 C

PDR

elther Ancrican Nuclear Insurers (ANI) and f40tual Atomic Energy Reinsurance Pool (MAERP) jointly or Nuclear Mutual Limited (NML); plus (ii) that offered by Nuclear Electric Insurance Limited (NEIL), the Edison Electric Institute (EEI), ANI and MAERP jointly, or NML as excess property insurance."

On thy 28,1982, the licensee filed a Request for Exemption from 10 CFR50.54(w).

In support of this reauest, the licensee indicated that Humboldt Unit 3 has been shut down since July 1976 and is presently in cold shutdown condition. The licensee indicates that studies conducted by it and the NRC staff conclude that the unit presents no danger to the health and safety of the public.

Further, the licensee presently maintains all-risk property damage insurance at Humboldt Unit 3 in the anount of aporoximately $100,000,000 which, in the licensee's opinior.,

is more than enough to cover the very remote nossibility of any damage to the uni t.

The licensee submits that any rdditional insurance beyond that currently carried should not be required.

In addition, the licensee states that the annual premiun would be a burden on its ratepayers.

The licensee has not provided sufficient information for the Commission to conclude that a permanent exemption to the requirements of 10 CFR l

i 50.54(w) is justified. However, the Commission requested additional l

information from the licensee in a letter dated June 24, 1982.

Responses l

from the licensee are due by July 25, 1982.

Given the status of the reactor in cold shutdown, the possibility of a serious accident at

!!umboldt Unit 3 is unlikely during the time that the licensee is 4

preparing its response and the Coonission considers the exemptio on i ts c.er i ts.

Accordingly, the Comission has determined that pursuant to 10 CFR' 50.12 a temporary exemption is authorized by law and will not endanger life or property or the comon defense and security and is otherwise Therefore, the Commission hereby approves the the public interest.

i following exemption:

The licensee is temporarily exempt from the requirements of 10 CFR 50.54(w), with respect to on-site property damage insurance, f

until such time as the Commission completes its evaluation o 24, 1982.

the licensee's request, dated June The NRC staff has determined that the granting of this exemption ant will not result in any significant environmental impact and that pursu be to 10 CFR Sl.5(d)(4) an environmental impact appraisal need not prepared in connection with this action.

FOR THE NUCLEAR REGULATORY C0t@tlS prSS

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Harold R. Denton, Director Office of Nuclear Reactor Regulation Dated at Bethesda, Maryland, this 29th day of June 1982 D-

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