ML20066B475
| ML20066B475 | |
| Person / Time | |
|---|---|
| Site: | Perry  |
| Issue date: | 12/31/1990 |
| From: | Office of Nuclear Reactor Regulation |
| To: | |
| Shared Package | |
| ML20066B473 | List: |
| References | |
| NUDOCS 9101080019 | |
| Download: ML20066B475 (3) | |
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_ [f* *%s fg UNITED STATES y
g NUCLEAR REGULATORY COMMISSION
'l WASHINGTON, D C,20555 SAFETY EVALUATION BY THE OFFICE OF NUCLEAR REACTOR REGULATION RELATED TO AMENDMENT NO.
36 TO F.*CILITY OPERATING LICENSE NO NPF-58 THE CLEVELAND ELECTRIC ILLUMINATING COMPANY, ET AL, PERRY NUCLEAR POWER PLANTr UNIT NO.1 DOCKET NO. 50-440
1.0 INTRODUCTION
By letter dated July 17, 1990, 1990, the Cleveland Electric Illuminating Companyas supplemented by-(letter dated CEI or CEICO) proposed an amendment to Facility Operating _ License No. NPF-58 for the Perry Nuclear Power Plant, Unit 1 (PNPP).
The proposed amendment would add Centerior Service Company (CSC) as a licensee to the Facility Operating License.
It would authorize both CEI and CSC to act as agents for the other licensees, and grant both the _ exclusive responsibility and control over the construction, operation and maintenance of the facility.
The proposed changes would more accurately reflect-the current organizational relationship, as discussed below. On October 3,~1990,.the Cosnission published a proposed finding _ that the amendment involved no:significant -
1azards consideration, tThis proposed finding remains unchanged with respect to the licensees' November 30, 1990 supplemental submittal,_which simply added the requirements that CSC shall comply with the antitrust i
conditions of the license, and that CEI will be responsible and' accountable-for the actions of CSC to the extent that.CSC's actions contravene those antitrust conditions.
2.0 DISCUSSI0N_
On April 24, 1990 the Board of Directors.of Centerior Energy Corporation i
adopted a reorganization plan.for the Corporation, its. operating company l
subsidiaries--The -Cleveland Electric-Illuminating Company and the Toledo L
Edison Company, and its existing service company -subsidiary--Centerior i
Service Company. Under this. reorganization, the_CEI nuclear. organization reports to Centerior Service Company. To reflect the change in reporting, the title of the Vice President in charge of the nuclear organization has i
been changed from the CEI Vice President-Nuclear Group to the CSC Vice President, Nuclear-Perry, Under the reorganization, CSC assumes senior management responsibility for-nuclear activities at the PNPP, Unit 1.
The CEI nuclear organization reports-through the CSC Vice President, Nuclear-Perry to the CSC Executive Vice President-Power Generation, who in turn reports to CSC's President and Chief Operating Officer, and ultimately to CSC's Chairman and Chief Executive 9101000019 901031 PDR ADOCK 05000440 P
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Officer. All other PNPP personnel remain employees of CEI. The reorganization makes no changes in the technical'or financial qualifications for the PNPP.
The sources of funding for the PNPP remain as they were prior to the reorganiza-
- tion, q
The proposed changes are intended:to reflect.the consolidation of Centerior Energy Corporation's nuclear plants (Perry and. Davis-Besse) under a cosunon a
management to allow,for. improved oversight, control.and uniformity of operations. The changes consist ofcthe addition.of'CSC as:a licensee, and grant CSC the authority, along-with CEI,
- to act as agents for the.other licensees and to have the exclusive _ responsibility and control over the construction, operation and' maintenance of the facility. The proposed license changes further specify that CSC shall comply with= the antitrust-conditions of Apperidix C to the license as if named therein, and that CEI is responsible and. accountable 1for CSC's actions with respect to those.
antitrust conditions =-A proposed footnote: indicates ~that the CEITnuclear-organization reports to CSC.
In addition, the title "Vice President-Nuclear Group" would.be revised to read "Vice President-Nuclear" wherever it appears in the Technical Specifications to proper.ly reflect. the currentLtitle of.
the senior manager having corpor, ate responsibility for the overall nuclear safety.of the PNPP. The NRC staff has: reviewed the proposed' changes, as discussed below.
3.0 EVALUATION.
The proposed amendment would not affect 'the technical qualificationsL -
4 necessary to operate:the PNPP, which willicontinue-to be provided by the CEI. nuclear organization. While there is -a__ change in reporting at the senior management levels there will continue to be clear and direct lines.
of authority.. responsibility and comunication from the highest management levels to all. operating organization. positions. involved in activities -
affecting plant safety, as= currently required by. the plant Technical.-
Specifications (TSs).
The Nuclear. Regulatory Commission's-(NRC) financial qualifications requirements
' remain satisfied by virtue of the fact that-the ownership of' the plant by
-the' electrical _ utilities.is unchanged.
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The reorganization of.-Centerior Energy : Corporation,,in bringing the nuclear' t
organizations of the' electric utilities under a-common' senior management.
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(CSC), will provide long-term benefits inherent' to an integrated nuclear.
company. These benefits will? include sharing of; nuclear-operating: experience-and expertise and mort effective:comunication.
To address potential antitrust concerns due to the addition of Centerior Service Compa to the: license, CEI proposed a revision to. License-Condition 2.C.3),-toaddthefollowinglanguage:
"Centerior Service Company (CSC) shallicomply with the antitrust conditions delineated. in:
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Appendix C to this license as if named therein.
CEICO is responsible and accountable for the actions of CSC to the extent that CSC's actions contra-vene the antitrust license conditions in Appendix C to this license." The NRC staff finds that these conditions will be sufficient to limit the role B
of CSC in the marketing or brokering of power or energy in the regions f
affected by the associated utilities.
CEI will have a substantial vested interest in assuring that CSC adheres.to the antitrust conditions, based on the revised license conditions. 'Therefore, the NRC staff concludes that'the enhanced license conditions are sufficient to prohibit the Centerior Service e
Company from actions that will cause antitrust-concerns, relative to CSC's' l
role as a licensee for the Perry Nuclear Power Plant,. Unit 1.
The plant owners and CSC.will be subject to the same existing antitrust license conditions and CEI will be responsible and accountable for the actions 'of a
CSC, relative to those antitrust conditions.
I Inaddition,thePHPPUnit1 Technical. Specifications (TSs)willberevised to reflect the change in the title of-the CEI Vice President-Nuclear Group to the CSC Vice President Nuclear-Perry. The' actual change deletes the word " Group" from the title "Vice President-Nuclear Group," wherever it appears, as it is clear that the Vice President-Nuclear referred to in the TSs is the Vice President, Nuclear for the PNPP. The footnote added to License Condition 2.B.(1) further clarifies that the-CE1' nuclear organization reports to CSC.
On the bases discussed above, the NRC staff finds the proposed changes j
acceptable.
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4.0 ENVIRONMENTAL CONSIDERATION
Pursuant to 10 CFR 51.21, 51.32, and 51.35, an environmental assessm::nt and finding of no significant impact-has been prepared and oublished in_the 1
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Federal Register on December 24, 1990 (55 FR 529, Accordingly, based upon the environmental assessment, the Commission has' determined that.
the issuance of this amendment will not have alsignificant effect on the j
quality of the human environment, t
5.0 CONCLUSION
The staff has concluded, based on the considerationssdiscussed:above, that:
(1) there is reasonable assurance that the health and safety of the public will'
-- i not be endangered-by operation in'the proposed manner, and (2) such activities will be conducted in compliance with the Consnission's regulations 'and the-issuance of this amendment will not be inimical to the common defense ~and; 1
security or to the health and safety of the public.;
1 Principal Contributor:. J. R. Hall, NRR Dated:
December 31, 1990 O
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