ML20128C764
| ML20128C764 | |
| Person / Time | |
|---|---|
| Site: | San Onofre  |
| Issue date: | 02/02/1993 |
| From: | Rosenblum R SOUTHERN CALIFORNIA EDISON CO. |
| To: | NRC OFFICE OF INFORMATION RESOURCES MANAGEMENT (IRM) |
| References | |
| NUDOCS 9302040127 | |
| Download: ML20128C764 (5) | |
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JG Southem Califamia Edison Company 23 PAMMEH STAEET IRvtNE. CAUFORNIA 92718 n.u nosagwu February 2, 1993 gey,g, NUCtLAM RtOtaLATOfW A$,Aa49 U. S. Nuclear Regulatory Commission Attention: Document Control Desk Washihgton, D. C. 20555-Gentlement
Subject:
Docket No. 50-206 Request to Amend Indemnity Agreement No. B-31 San 0nofreNuclearGeneratingStation, Unit 1(SONGS 1)
This is a recuest to amend Indemnity reement No. B-31 between Southern California Ecison Company (SCE)(and t hereinafter"theIndemnityAgreement")(NRC),
Nuclear Regulatory Commission dated June 3, 1966, as amended The
,urpose of this request is to eliminate the current requirement for SCE to participate in the secondary financial protection:orogram covering SONGS 1.
Asdescribedbelow,thisrequestisconsistentwiththetermsofthe-Indemnity Agreement and the NRC regulations.
The proposed amendment (Amendment No. 19) to the Indemnity Agreement is included as Attachment A.-
BACKGROUND Pursuant to 10 CFR 140.11(a)(4), SCE is recuired to maintain $200 million in primary nuclear liability insurance for S0 HGS.
In addition SCE is required to maintain secondary financial protection in the form of private. liability insurance under an industry retrospective ratin as the secondary financial-protection program).g plan (hereinafter referred to Under this program, SCE is liable for deferred premium charges of up to $63 million per Unit with respect to any nuclear incident, but not more than.$10 million-per Unit per; incident-within one calendar year.
SCE's request for the amendment to the ' Indemnity.
Agreement is based on the permanent cessation of_ SONGS 1 operation on November 30,'1992, and relates only to the secondary coverage.for SONGS 1.
Coverage _ for Units 2 and 3.will continue to remain in effect.
1 APPLICABLE. INDEMNITY AGREEMENT PROVISIONS' With' regard to requirements for= financial protection, Article'II. paragraph 1;
-ofIndemnityAgreementNo.B-31(asrevisedbyAmendmentNo._2) states,in part:
"The licensee shall', notwithstanding the' expiration, termination, modification, amendment, suspension or revocation ofiany license or-licenses. designated'in Item 3 of the Attachment,-maintain such financial 9302040139930202
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protection in effect until all the radioactive material has been removed from the location and transportation of the radioactive material from the location has ended as defined in subparagraph S(b), Article 1, or until the Commission authorizes the termination or the modification of such financial protection, ihe Commission will not unreasonably withhold such authorization."
Hence, the Indemnity Agreement requires SCE to maintain the financial protection stated in the agreement, including the secondary financial protection, until radioactive material is removed from the site, or until the NRC agrees to a termination or modification of the required coverage.
Since the provisions of 10 CFR ;40.11(a)(4) no longer apply to SONGS 1 as discussed below, an amendment to the Indemnity Agreement is necessary to eliminate participation in the secondary financial protection program with respect to SONGS 1.
BASIS FOR AMENDHENT TO THE INDEMNITY AGREEMENT Operation at SONGS 1 was permanently ceased on November 30, 1992.
The final core offload is scheduled to occur in March 1993. On October 23, 1992, the NRC issued Amendment No. 150 to modify the SONGS 1 Facility Operating License to a Possession Only License (POL).
The POL would be effective upon the NRC's receipt of a letter from SCE certifying that all fuel h6s been of 5 loaded from the core and stored in the s)ent fuel pool. SONGS 1 would no longer be authorized to operate once tie POL becomes effective.
The secondary financial protection requirements imposed by 10 CFR 140.11(a)(4) are applicable only to a reactor which is licensed to operate and which is designed for the production of electrical energy and has a rated capacity of 100,000 electrical kilowatts or more. As discussed above, SONGS 1 will no longer be licensed to operate when SCE has certified by letter that all fuel has been offloaded from the core and stored in the spent fuel pool.
The provision of 10 CFR 140.11(a)(4) will no longer apply to SONGS 1 following the certification.
SCE will not require secondary coverage for SONGS 1, nor should SCE be obligated to extend such coverage (through deferred premiums) to the Unit once the POL becomes effective. Since there would be no credible risk of an accident at SONGS 1 with damages exceeding the $200 million primary coverage, SCE would no longer have risks to place upon other utilities. Consec uently, SCE should not have to share in the risks of other utilities.
In adcition, exclusion of SONGS 1 from the secondary financial. 3rogram will remove the potential liability (up to $63 million per event, aut not more than $10 million per year per event) that must be reported on SCE's financial-statements.
Finally, SCE's request to amend the Indemnity Agreement is similar to requests made by Consolidated Edison Company of New York for its' Indian Point Unit 1 and by Long Island Lighting Company for its Shoreham plant.
These Utilities also requested amendment to their Indemnity Agreements to eliminate the secondary firancial protection requirements because their reactors were
4 Document Control Desk defueled and they were no longer authorized to operate the plants.
Consolidated Edison's request was granted by the NRC on December 19, 1989.
CONCLUSION SCE requests an amendment to Indemnity Agreement No. B-31, as proposed in Attachment A, to eliminate the requirement for SCE to participate in the secondary financial protection program as applicable to SONGS 1 when the POL becomes effective in March 1993.
Issuance of the amendment is justified by the virtual elimination of any risk of an accident at SONGS 1, with damage exceeding the current $200 million primary coverage, following core offload and fuei storage in the spent fuel pool.
Issuance of the amendment is also allowed by the existing regulations.
Should you have any cuestions regarding this request, or desire further information, please to not hesitate to contact me.
Very truly yours,
$M Enclosure cc:
J. B. Martin, Regional Administrator, NRC Region V J. O. Bradfute, NRC Project Manager, San Onofre Unit 1 C. W. Caldwe'.1, NRC Senior Recident inspector, San Onofre Units 1, 2&3 R. F. Dudle3, Section Chief, Non-Power, Decommissiening, and Environment 01 Project. Directorate of Reactor Projects - 3, 4 and 5
ATTACHMENT A Docket Nos, 50-206, 50-361, and 50-362 Amendment to Indemnity Aareement No. B-31 l
Amendment No. 19 Effective (date)
, Indemnity Agreement No. B-31, between Southern California Edison Company, San Diego Gas and Electric Company, City of Riverside, California, and City of Anaheim, California, and the Atomic Energy Commission, dated June 3,1966, as amended,-is hereby further amended as follows:
Item 2a of the Attachment to the Indemnity Agreement is deleted in its entirety and the following substituted therefor:
Item 2 - Amount of financial protection a.
$1,000,000 (From12:01a.m., June 3,1966,to 12 midni ht, March 26, 1967, inclusive
$74,000,000 (From 12:01 a.m., March 27, 1967, to 12 midnig t, January 31, 1969, inclusive
$82,000,000 (From 12:01 a.m., February 1, 1969, to 12 midnight, February 29, 1972, inclusive)
$95,000,000 (From 12:01 a.m., March 1, 1972, to 12 midnight, February 28, 1974, inclusive)
$110,000,000 (From 12:01 a.m., March'1, 1974, to 12 midnight. March 20, 1975, inclusive)
$125,000,000 (From 12:01 a.m., March 21, 1975, to 12 midnight, April 30, 1977, inclusive)
$140,000,000*
(From 12:01 a.m., May 1, 1977, to 12 midnight, April 30, 1979, inclusive)
$160,000,000*
(From12:01a.m., June 3,1979,to 12 midnig t, June 30, 1989, inclusive
$200,000,000*
(From 12:01:a.m., July.1,1989, to.
present)
- and, as of August 1,1977, the amount available as -secondary financial protection, except that no participation in the secondary financial protection program shall be required'with respect to a reactor which has been permanently.
shut down, and where the licensee's authority-to. operate'the unit as a power-reactor has been removed by the. Commission.
4 ATTACHMENT A (Contd.)
FOR THE UNITED STATES NUCLEAR REGULATORY COMMISSION l
By 4
d Accepted
, 1993 Accepted
, 1993 By By Southern California Edison San Diego Gas and Electric Company Company Accepted
, 1993 Accepted 1993 City of Riverside, California City of Anaheim, California 4
,