ML20150E024

Summary of 880615 Meeting W/Utils Re Proposed Establishment & Licensing of Sys Energy Resource,Inc as Operators & Licensing Agent for Plants

ML20150E024
Person / Time
Site:	Grand Gulf, Arkansas Nuclear, Waterford, 05000000
Issue date:	06/21/1988
From:	Wigginton D Office of Nuclear Reactor Regulation
To:	Office of Nuclear Reactor Regulation
References
NUDOCS 8807140285
Download: ML20150E024 (35)

Text

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UNITED STATES l

$' n NUCLEAR REGULATORY COMMISSION l

.  :! .E WASHINGTON, D. C. 20555 l

[ June 21 3 1988 .

Docket Nos. 50-382, 50-313, 50-368, 50-416 and 50-417 LICENSEE: Louisiana Power & Light Company Arkansas Power & Light Company Mississippi Power & Light Company Systems Energy Resource, Inc.

South-Mississippi Electric Power Association FACILITY: Waterford Steam Electric Station, Unit 3 Arkansas Nuclear One, Units 1 and 2 Grand Gulf Nuclear Station, Units 1 and 2

SUBJECT:

SUWARY OF MEETING HELD ON JUNE 15, 1988 WITH MIDDLE SOUTH UTILITIES REPRESENTATIVES TO DISCUSS PROPOSED ESTABLISHMENT I AND LICENSING OF SYSTEMS ENERGY RESOURCE, INC (SERI) AS OPERATORS OF WATERFORD AND ARVANSAS NUCLEAR ONE On June 15, 1988, members of the NRC met with representatives of the Middle South Utilities to discuss preliminary plans and licensing arrangements for the proposed establishment of System Energy Resource, Inc. (SERI), as the I operator and licensing agent for the Waterford Steam Electric Station, Unit 3 and the Arkansas Nuclear Onc, Units 1 & 2. SERI is presently the licensee for the Grand Gulf Nuclear Station, Units 1 and 2. The meeting participants are listed in Enclor,ure 1.

The SERI representatives presented an agenda for the discussions which is attached as Enclosure 2. The discussions in the meeting were to assure complete and sufficient license amendment submittals for Waterford and Arkansas Nuclear One and to revise the Safety Evaluation, if appropriate, for the license amendment which suppor+ad SERI principal ownership and operation of Grand Gulf.

The information discussed at the meeting is expected to be expanded in some areas and made part of these submittals.

In addition to the infonnation presented in Enclosure 2, the licensees were requested to clarify or address several other concerns. These include, but were not limited to, the following. A number of plans and programs will likely undergo changes after the SERI assumes operation of all three sites. The significant changes will be submitted to the Comission after the implementation of the proposed amendments go into effect but prior to change to allow the staff review of, among other things, the management and technical capability to maintain the current acceptable plans and programs from a central location.

Another clarification will assure that the fuel and byproduct caterial will remain at the respective sites; any proposal to store fuel or byproduct material from one site at another would then require a separate license amendment.

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The proposed license amendment packages from the owners of each facility will include a SERI statement on agreer.ent to (perate Waterford and Arkansas Nuclear One in addition to Grand Gulf. Certain acditional license conditions will be further modified tc reflect the SERI and owner responsibilities, however, license conditions which have been met and are considered complete will not be modified or removed by the proposed license amendments. The submittal letters are expected to include reference to state and local contacts and meetings by the owners on the subject of SERI operation of the facilities. A letter will be provided on the Crand Gulf docket as significant results occur on hearings or rate cases before the Supreme Court. This infonnation will establish a record on related matters so that the public and the NRC may be informed of SERI reorganization and other efforts leading to operation of all three sites.

At the conclusion of the meeting, the licensees and SERI restated the schedule for submittal of the Waterford and Arkansas Nuclear One proposed license amendments about July 1,1988 and agreed to develop a Grand Gulf revised Safety Evaluation submittal for some time later in the summer.

\0 David L. Wigginton, Project Manager Project Directorate - IV Division of Reactor Projects - III, IV, Y and Special Projects

Enclosures:

As stated cc w/ enclosures:

See next page l

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DISTRIBUTION l G ocket File NRC PDR Local PDR PD4 Reading l J. Calvo D. Wigginton 0GC-Reckville E. Jordan B. Grimes D. Crutchfield W. Lambe B. Vogler ,

J. Petersen F. Allenspach C. Harbuck L. Kintner ACRS (10) PD4 Plant File PD4/PM DWigginton:sr 06A\/88

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. I The proposed license amendment packages from the owners of each facility will include a SERI statement on agreement to operate Waterford and Arkansas Nuclear One in addition to Grand Gulf. Certain additional license conditions will be  ;

further modified to reflect the SERI and owner responsibilities, however, license conditions which have been met and are considered complete will not be modified or removed by the proposed license amendments. The submittal letters  !

are expected to include reference to state and local contacts and meetings by the owners on the subject of SERI operation of the facilities. A letter will be provided on the Grand. Gulf docket as significant results occur on hearings or rate cases before the Supreme Court. This infonnation will establish a record on related matters so that the public and the NRC may be infonned of SERI reorganization and other efforts leading to operation of all three sites.

l At the conclusion of the meeting, the licensees and SERI restated the schedule for submittal of the Waterford and Arkansas Nuclear One proposed license amendments about July 1,1988 and agreed to develop a Grand Gulf revised Safety ,

Evaluation submittal for some time later in the suniner.

David L. igginton, Project Manager Project Directorate - IV i Division of Reactor Projects - III, IV, V and Special Projects

Enclosures:

As stated cc w/ enclosures:

See next page

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e s Mr. Jerrold G. Dewease Waterford 3 Louisiana Power & Light Company .

cc:

W. Malcolm Stevenson, Esq. Regional Administrator, Region IV Monroe & Leman U.S. Nuclear Regulatory Comission 1432 Whitney Building Office of Executive Director for New Orleans, Louisiana 70103 Operations 611 Ryan Plaza Drive Suite 1000 Mr. E. Blake Ar'ington, Texas 75011 Shaw, Pittman, Potts & Trowbridge 2300 N Street, NW ~Mr. William H. Spell, Administrator Washington, D.C. 20037 - Nuclear Energy Division Office of Environmental Affairs Resident Inspecte:/Waterford NPS Post Office Box 14690 Post Office Box E22 Baton Rouge, Louisiana 70898 Killona, Louisiana 70066 Mr. Ralph T. Lally President, Police Jury Manager of Quality Assurance St. Charles Parish Middle South Services, Inc. Hahnville, Louisiana 70057 Post Office Box 61000 ~

New Orleans, Louisiana 70161 Chairman William A. Cross Louisiana Public Service Comission Bethesda Licensing Office One American Place, Suite 1630 3 Metro Center Baton Rouge, Louisiana 70825-1697 Suite 610 Bethesda, Maryland 20814 Mr. R. F. Burski, Acting I

Nuclear Safety and Regulatory Affairs Manager Louisiana Pcwer & Light Company ,

317 Baronne Street i New Orleans, Louisiana 70112 I I

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Mr. T. Gene Campbell Arkansas Nuclear One Arkansas Power & Light Company Unit Nos. I and-? ,  !

cc:

Mr. Dan R. Howard, Manager Mr. Charles B. Brinknan, Manager Licensing Washington Nuclear Operations Arkansas Nuclear One C-E Power Systens P. O. Box 608 7910 Woodmont Avenue 1 Russellville, Arkansas 72801 Suite 1310 l Bethesda, Maryland 70814 Mr. James M. Levine, Executive Director Site Nuclear Operations Mr. Frank Wilson, Director Arkansas Nuclear One . Division of Environmental Health l P. O. Box 608 Protection Russellville, Arkansas 72801 Department of Health Arkansas Department of Health ,

Nicholas S. Reynolds, Esq.

4815 West Markham Street Bishop, Liberman, Cook, Little Rock, Arkansas 72201  ;

Purcell & Reynolds i 1200 Seventeenth Street, N.W. Honorable William Abernathy Suite 700 County Judge of Pope County Washington, D.C. 20036 Pope County Courthouse Russelville, Arkansas 72801 i Regional Administrator, Region IV l U.S. Nuclear Regulatory Comission Office of Executive Director for Operations 611 Ryan Plaza Drive Suite 1000 Arlington, Texas 76011 Senior Resident Inspector U.S. Nuclear Pegulatory Comission 1 Nuclear Plant Road Russellville, Arkansas 72801 Ms. Greta Dieus, Director Division of Environmental Health l Protection l Arkansas Department of Health l 4815 West Markam Street Little Rock, Arkansas 72201 Mr. Robert B. Borsum Babcock & Wilcox Nuclear Power Geiteration Division Suite 220 1700 Rockville Pike, Suite 525 Rockville, Maryland 20852

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Mr. Oliver D. Kingsley, Jr. .

System Energy Resources. Inc. Grand Gulf Nuclear Station (GGNS) cc:

Mr. Ted H. Cloninger Mr. C. R. Hutchinson Vice President, Nuclear Engineering GGNS General Manager and Support System Energy Resources, Inc.

System Energy Resources, Inc. Post Office Box 756 Post Office Box 23054 Port Gibson, Mississippi 39150 Jackson, Mississippi 39205 Robert B. McGehee, Esquire . The Honorable William J. Guste, Jr.

Wise, Carter, Child, Steen and Caraway Attorney General Departnent of Justice P.O. Box 651 Jackson, Mississippi 39205 State of Lcuisiana Baton Rouge, Louisiana 70804 Nicholas S. Reynolds, Escuire Bishop Libeman, Cook, Purcell Office of the Governor and Reynolds State of Mississippi i 1400 L Street, N.W. Jackson, Mississippi 39201-Washington, D. C. 20005-3502 -

Attorney General Mr. Ralph T. Lally Gartin Building Manager of Quality Assurance Jackson, Mississippi 39205 Middle South Utilities System Services, Inc.

639 Loyola Avenue, 3rd Floor Mr. Jack McMillan, Director New Orleans, Louisiana 70113 Division of Solid Waste Management Mississippi Department of Natural Mr. John G. Cesare Resources Director, Nuclear Licensing Post Office Box 10385 ,

System Energy Resources Inc. Jackscn, Mississippi 39209 P.O. Box 23054 Jackson, Mississippi 39205 Alton B. Cobb, M.D. I State Health Officer Mr. C. B. Hogg, Project Manager State Board of Health Bechtel Power Corporation P.O. Box 1700 ,

P. O. Box 2166 Jackson, Mississippi 39205 I Houston, Texas 77252-2166 President Mr. Ross C. Butcher Claiborne County Board of Supervisors Senior Resident Inspector Port Gibson, Mississippi 39150 U. S. Nuclear Regulatory Comission 101 Marietta Street, N.W., Suite 3100 Atlanta, Georgia 30323 Mr. James E. Cross GGNS Site Director Systems Energy Resources, Inc.

P.O. Box 756 Port Gibson, Mississippi 39150

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. Enclosure 1 SERI ORGANIZATION MEETING JUNE 15, 1988 Name Organization l l

D. L. Wigginton NRR - Lead PM i Dennis Crutchfield NRR - DRSP l N. S. Reynolds Bishop, Cook, Purcell & Reynolds/ l SERI l R. B. McGehee . WCC&C/SERI  !

T. G. Campbell AP&L

0. D. Kingsley SERI M. J. Meisner LP&L l Sam H. Hobbs SERI )

Dan Howard AP&L Dale E. James AP&L William M. Lambe NRC - NRR

!. Ben H. Vogler NRC/0GC James C. Petersen NRC/NRR Frederick R. A11enspach NRC/NRR Mike Aycock TENERA/SERI John Guibert TENERA/SERI David Repka Bishop Cook, Purcell & Reynolds C. C. Harbuck NRR/AN0 Project Mgr.

W. E. Edge SERI L. L. Kintner NRC - SERI PM l

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,- Enclosure 2 I

i AGENDA FOR AP8L, LP8L, SERI MEETING WITH NRC 1 ON TRANSFERRING ANO, WATERFORD j LICENSES TO SERI l JUNE 15, 1988

l. OPENING REMARKS -

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11. APPROACH TO CONSOLIDATING MIDDLE SOUTH UTILITIES NUCLEAR PLANT MANAGEMENT 111. DISCUSSION ITEMS REGARDillG CURRENT AND PLANNED ORGANIZATION AND OPERATIONS i A) ORGANIZATIONAL STRUCTURE AND PLANS B) PLANT IMPROVEMENT PLANS C) SETTING PRIORITIES D) FINANCIAL QUALIFICATIONS E) EFFECTS ON THE GGNS LICENSE IV. DISCUSSION OF DRAFT SUBMITTAL /NRC FEEDBACK l

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OBJECTIVES OF CONSOLIDATION THE CENTRAL OBJECTIVE IS TO INTEGRATE MSU'S NUCLEAR l MANAGEMENT AND OPERATING ORGANIZATIONS UNDER ONE COMPANY i SUCH THAT, AS A MINIMUM, THE FOLLOWING BENEFITS ARE j REALIZED' i

I 0 PROVIDE DEDICATED SENIOR MANAGEMENT FOCUS ON NUCLEAR OPERATIONS. l O PROVIDE A REPOSITORY OF NUCLEAR OPERATING EXPERTISE AND i EXPERIENCE THAT WILL ENHANCE PUBLIC SAFETY AND ECONOMIC OPERATIONS. )

O PROVIDE A CONSISTENT VISION AND FOCUSED PHILOSOPHY FOR ACHIEVING EXCELLENCE IN NUCLEAR OPERATIONS.

i 0 PROVIDE MORE EFFECTIVE COMMUNICATION AND USE OF SYSTEM NUCLEAR OPERATING EXPERIENCE.

O FOCUS NOM-NUCLEAR SUPPORT FUNCTIONS ON THE REQUIREMENTS OF A NUCLEAR OPERATING COMPANY.

O F10 VIDE GREATER OPPORTUNITIES FOR CAREER ADVANCEMENT FOR MANAGERS AND EMPLOYEES SPECIALIZED IN NUCLEAR OPEPATIONS.

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APPROACH TO CONSOLIDATING MIDDLE SOUTH UTILITIES l NUCLEAR PLANT MANAGEMENT o Sy,STEMWIDE TEAM / STRONG MANAGEMENT OVERSIGHT 0 PROJECT TEAM 0 DELIBERATE

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- CURRENTLY HAVE 3 STRONG, SUCCESSFUL ORGANIZATIONS AWARE OF SPECIAL AND UNIQUE NEEDS INTEND TO MINIMIZE DISRUPTION DUF TO CHANGES 0 CLEAR OBJECTIVES 0 PROFESSIONAL CONSULTATION ASSISTANCE l

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CONSOIJDATION ' '

i SENKR DECISION GROUP i i

! PROJECT ORGANIZATION LUPBERGER l

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CAVANAUGH j MAULDEN I

i l OWNERS' STEERING Gp l CAVANAUGH, CHMN.

j GENE CAMPSELL

MIKE BEMIS j JERROLD DEWEASE l DON HUNTER MetateSEY & M j 808 5tVIN 1 . DAME WENNER i PROJECT TEAM Ba1. HARMON i ufMN MCHTDt j JOE BLOUNT CHMiuE AL1JtED PROJECT MANAGER ROBERT McGEHEE I

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1 CRONEATION PDtSONNEL/ STATE POL LEGAL. INTUt-COMPANY 1 ym UCENSNG/MIC DOMQN l BENEFH3 & REO. ISSUES CONTRACTS _- -- _ .f & C D.

I RICH LNor j DON RUETER RICH LAfor ARRY JACKSON E.D M HMIDER GJWUt K9005.EY 1ED CLOletist t ODE TUCKER im(E BURNS Mcl0NSEY & CO. ROBERT McGDEE ROBERT McGUEE a.ENN HAftDDt

! EORE J00ES DON WELLS S. CUNNINGHAM J06M HARTON KRROLD DEWEASE ROSS BAftKHLNtST i JOHN uMtSHAu. KEur FOSTUt MM. McLETCHE M LEVINE HENRY WRREN j TOM SCHNATZ i

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l COETjtDEFTT PUBUC REUm0NS ' Pru ers r c &

j ANALYSIS McKesSEY & Co.

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MCH N RON RO8edSON ROBENT McGEHEE RENN HARDER DON ItuETER I gygg MCH N -

TOM LB. R & P N. LANGSTON BEi. UtADDOOC

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LICENSING APPROACH O LICENSING TEAM WORKING GROUPS MAIN LICENSING TEAM

• OFFSITE POWER ,

EMERGENCY PLANNING OTHER LICENSES AND PERMITS ISSUES SEARCH TEAM MISCELLANEOUS ISSUES TEAM i

0 AP&L, LP&L AND SERI ARE EACH REPRESENTED ON ALL

WORKING GROUPS j

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e SERI ORGANIZATIONAL STRUCTURE AND PLANS ,

0 NO CHANGES IN NUCLEAR ORGANIZATIONS FOR ANO, GGNS, OR WATERFORD 3 O PRUPOSED RESTRUCTURING WILL STRENGTHEN THE MIDDLE SOUTH SYSTEM'S NUCLEAR MANAGEMENT CAPABILITIES BY FOCUSING MANAGEMENT ATTENTION-ON NUCLEAR PLANT OPERATIONS 0 PROPOSED RESTRUCTURING IS A CONTINUATION OF THE MSU POLICY OF EXCELLENCE IN NUCLEAR OPERATIONS, BY CONSOLIDATING MANAGEMENT OF THE MSU NUCLEAR PLANTS MSU SYSTEM NUCLEAR EXECUTIVE NUCLEAR MANAGEMENT COMMITTEE RESOURCE SHARING / JOINT PROBLEM SOLVING' 0 NO DEGRADATION OF:

SAFETY '

ORGANIZATIONAL PERFORMANCE CURRENT SUPPORT i

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APPROACH TO FUTURE CHANGES ,

O APPLY SOUND MANAGEMENT PRINCIPLES AND BUSINESS PRACTICES O CONTROLLED ORGANIZATION CHART O POLICY WHICH SPECIFIES CONTROLS 0 EVALUATE PROPOSED ORGANIZATIONAL AND PROGRAMMATIC CHANGES IN ACCORDANCE WITH NRC REGULATIONS (I.E.; SAFETY EVALUATIONS; NO DECREASE IN EFFECTIVENESS OF SECURITY PLANS, EMERGENCY PLANS; ETC.)

O ENSURE CONTINUED APPLICATION OF FUNDAMENTAL OPERATING PRACTICES IMPORTANT TO SA.FETY (E.G. I OPERATIONS AND MAINTENANCE FUNCTIONS)NTEGRATED ENGINEERING, 0 KEEP NRC INFORMED 0 NO DEGRADATION OF:

SAFETY ,

ORGANIZATIONAL PERFORMANCE l CURRENT SUPPORT I

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' l MIDDLE SOUTH UTILITIES ORGANIZATION .  !

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l Wootr 50um UTLmES, NC.  !.

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MSU CHAIRMAN l i

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& PRESIDENT .:  !

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l E.A.LUPBERGER l l

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SYSTEM NUCLEAR EXECUTNE MSU SYSTEM  !  !

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SENIOR VICE PRESIDENT EXECUTIVES IN OTHER AREAS W. CAVANAUGH,111 L e

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COMMITTEE *  !

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MtKAN!MS LOUISIANA !MTEM ENERGf MtSSISSPPI E W ORLEANS POWER & UGHT POWER & Ll0HT RESOURCES, POWDt & Ll0HT PUBLIC SUNCE, COWAMf COWANY INC. COWARf NC.

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SUMCES NC.

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• NHP 0F TM NUQ.E#t WANAGOENT C0WMTTEE INCLUDES AN EXECUTM REPRESENTATM OF EACH WSU C0r#ff DNOLWD N NUQJ.Nt # TEAS.

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PROPOSED SER! ORGANIZATION CHART  :

CHAIRMAN ^ -

OF THE BOARD .

4 E. A. LUPBERGER PRESIDENT ,

AND CHIEF EXECUTIVE OFFICER

, W. CAVANAUGH 111 l

l WATEFtFORD 3 SUPPORT ONE FUNCTIONS T.G. CAMPBELL J.G. DEWEASE GRAND GULF GRANDGtLF j NUCLEAR OPERATIONS SUPPORT O.D. KNGSLEY. Jr. T.H. CLONINGER i

NOTE QUAUTY ORGAMZATIONS FOR EACH PLANT HAVE ACCESS TO l PRESOENT & CEO ON MATTERS RELATED TO QUAUTY

ARKANSAS "3WER & LIGHT NUCLEAR ORGANIZATION .

1 VICE PRESIDENT i

NUCLEAR OPERATIONS I*

• T. G. CAMPBELL ,

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l 8 EXECUTIVE DIRECTOR I DESIGN NUCLEAR NUCLEAR QUALITY J. M. LEVINE ENGINEERING OVERSIGHT / SUPPORT L. W. HUMPHREY G.T. JONES '

W. T. CRADDOCK 1

BUDGETS &,

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LICENSING PLANT PLANT N " I" SUPPORT PLANNING MANAGER D. R. HOWARD S. M. QUENNOZ R. D. LANE E. C. EWING W. H. JONES

TECHMCAL SUPPORT HEALN PWSES

! ADWNSTPADON OPERATIONS WORK CONTROL MAINTENANCE PLANT MODIFICATIONS OPERADONS ASSESSMENT J. D. VANDERGRIFT R. P. WEWERS S. J. McWILLIAMS B.A. BAKER SECURRY UNIT 1 OPERATION

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• NUC2_ EAR QUALITY HAS DIRECT ACCESS TO THE SEMOR VICE PRESOENT 2NM GENERADON TRANSMSSON AND ENGMEERING ON MATTEPS REA1ED TO QUALnY.

LOUISIANA POWER & LIGHT NUCLEAR ORGANIZATION SENIOR VICE PRESIDENT NUCLEAR OPERATIONS ,

J. G. DEWEASE VICE PRESIDENT NUCLEAR SAFETY NUCL N NUCLEAR NUCLEAR QUALIT(

&R U ORY R. P. BARKHURST SERVICES ASSURANCE R.F.BURSKI T. F. GERRETS , S. A. ALLEMAN i

I NUCLEAR NUCLEAR MANAGEMENT NUCLEAR NUCLEAR OPERATIONS

• PLANT OPERATIONS OPERATIONS SYSTEMS SUPPORT & OPERATIONS ENGINEERING &

CONSTRUCTION MANAGER ASSESSMENT TRAINING J. R. McGAHA N. S. CARNS A.S.LOCKHART L. W. MYERS C.J.TOTH S TECHNICAL OPERATIONS & PLANNING &

E R bG O RATI S SERVICES MAINTENANCE ADMINISTRATION SCHEDULING

RESPONSE

D. E. BAKER R V. PRASANKUMAR D. F. PACKER R. W. LAILHEUGUE T. R. LEONARD PUNT ENGGEERNG ~ SECURHY RADIA;Of PROTECTION RECORDS MANAGOENT FIRE PROTECTION & SAFETY MATERIN S MANAGGENT

SYSTEM ENERGY RESOURCES, INC. NUCLEAR ORGANIZATION

' PRESIDENT & ,

JHIEF EXECUTIVE OFFICER ------------------i W. CAVANAUGH,111 l

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l i VICE PRESIDENT VICE PRESIDENT  :

NUCLEAR OPERATIONS 3 h I l

O. D. KINGSLEY, Jr. T. H. CLONINGER  :

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NUCLEAR SITE N CLN NUCLEAR QUALITY LICENSING DIRECTOR ENGINEERING SUPPORT PROGRAMS J. C. CESARE , W. COTTLE F. W. TITUS T. E. REAVES,5 S. M. FEITH UNIT 2 GENERAL CONSTRUCTION PLANT MANAGER W. C. FINCH C. R. HUTCHINSON i

i EMERGENCY SITE SPECIAL TRAINING j PREPAREDNESS CONTROLLER PROJECTS

! R. C. FRON R. W. MARTIN K. W. BEATTY R. F. R.OGERS l

i PLANT PLANT PLANT PLANT l

$ SUPPORT OPE 390NS MAINTENANCE

&C STR CTION M. J. WRIGHT I J. YELVERTON J. P. DIMMETTE, Jr. J. C. ROBERTS 4

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i ENGINEERING .

o TIMELY, RESPONSIVE AND COMPETENT ENGINEERING SUPPORT OF NUCLEAR PLANTS IS ESSENTIAL.

O CURRENT ANO, GGNS AND WATERFORD 3 ENGINEERING ORGANIZATIONS ,

ARE DEDICATED TO SUPPORTING THEIR RESPECTIVE NUCLEAR PLANTS. l 1

0 CURRENT ORGANIZATIONAL ALIGNMENTS, PERSONNEL AND PHYSICAL l LOCATION FOR ENGINEERING SUPPORT OF EACH PLANT WILL NOT l CHANGE AS A RESULT OF THE PROPOSED CONSOLIDATION.

O FUTURE ORGANIZATIONAL AND PROGRAMMATIC CHANGES, IF ANY, WILL BE ACCOMPLISHED IN SUCH A WAY AS TO CONTINUE TO ASSURE TIMELY, RESPONSIVE AND COMPETENT ENGINEERING SUPPORT OF EACH OF THE NUCLEAR PLANTS.

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llCENSING .

O INTEGRATION OF LICENSING SUPPORT WITH PLANT OPERATIONS AND NUCLEAR SUPPORT ACTIVITIES IS ESSENTIAL TO ENSURING COMPLIANCE WITH REGULATORY REQUIREMENTS AND RESPONSIVENESS TO REGULATORY AGENCIES.

O CURRENT ANO, GGNS AND WATERFORD 3 LICENSING ORGANIZATIONS ARE DEDICATED TO SUPPORTING THEIR RESPECTIVE NUCLEAR PLANTS AND INCLUDE COMPONENTS ,THAT ARE LOCATED ONSITE.

O CURRENT ORGANIZATIONAL ALIGNMENTS, PERSONNEL AND PHYSICAL LOCATION OF LICENSING SUPPORT FOR EACH PLANT WILL NOT CHANGE AS A RESULT OF THE PROPOSED CONSOLIDATION.

O FUTURE ORGANIZATIONAL CHANGES, IF ANY, WILL BE ACCOMPLISHED IN SUCH A WAY AS TO CONTINUE TO ENSURE THAT LICENSING ADEQUATELY SUPPORTS EACH PLANT AND ITS RESPECTIVE NUCLEAR SUPPORT ORGANIZATIONS. -

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PLANT IMPROVEMENT PLANS .

O EACH PLANT HAS ITS OWN IMPROVEMENT PROGRAMS 0 FOR FUTURE IMPROVEMENTS AND CONTINUATION OF EXISTING PROGRAMS:

FINANCIAL RESOURCES - NO COMPETITION FOR RESOURCES -

AP&L/LP&L CONTINUE AS OWNERS AND ARE RESPONSIBLE FOR FUNDING l HUFAN RESOURCES - KEY PERSCNNEL ARE COMMITTED TO EACH I

PROJECT - SO THERE IS NO COMPETITION BETWEEN PROJECTS FOR KEY PERSONNEL 0 IMPROVING NUCLEAR OPERATIONS CONTINUES 'S A FUNDAMENTAL l OBJECTIVE OF MSU l I

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SETTING PRIORITIES FOR MULTIPLE SITES -

AND REACTOR TYPES 0 CONSOLIDATION WILL NOT DEGRADE EACH PROJECT'S PRIORITIES NO COMPETITION BETWEEN PROJECTS FOR KEY PERSONNEL OR FINANCIAL RESOURCES 0 NO DELAYING OF IMPORTANT ITEMS OF ONE PLANT TO SUPPORT ANOTHER

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0 EXISTING NUCLEAR PERSONNEL AT AP8L AND LPat TRANSFER INTACT TO SERI O SYSTEMATIC APPROACH TO PROBLEM SOLVING 0 BROADER EXPERIENCE BASE AVAILABLE TO ASSIST IN PROBLEMS 0 LESSONS LEARNED SHARED PROMPTLY, EFFICIENTLY AND  :

CONSISTENTLY- l 0 ALLOWS DEDICATED PERSONNEL AND FOCUSED APPROACH IN  !

SPECIALTY AREAS l

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FINANCIAL QUALIFICATIONS O SERI WILL HAVE NO OWNERSHIP INTEREST IN ANO OR WATERFORD 3 0 SERI WILL ACT AS AGEllT TO OPERATE ANO AND WATERFORD 3 0 OPERATING AGREEMENTS 0 RATE STRUCTURE AND JUNDING i

0 OPEN LEGAL ISSUES l

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OPERATING AGREEMENTS .

O SERI AGENT OF AP&L AND LP8L O SERI WILL HAVE FULL AUTHORITY TO MAKE SAFETY DECISIONS INVOLVING ALL NUCLEAR PLANTS 0 AP&L' AND LP&L AS THE OWNERS CONTINUE TO OWN ALL REAL PROPERTY AND EQUIPMENT 0 SERI WILL "0T FAVOR ONE PLANT OVER ANOTHER 0 SERI WILL KEEP AP&L AND LPal AS OWNERS INFORMED ON STATUS OF OPERATIONS / HOLD PERIODIC MEETINGS 0 SMEPA SUPPORTIVE OF PROPOSED AMENDMENTS BUT NOT AFFECTED I

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RATE STRUCTURES AND FUNDING .

O AP&L, LPal AND SERI RATE STRUCTURES NOT AFFECTED GRAND GULF RATES UNDER FERC REGULATION. RETAll RATE STRUCTURE AT OPERATING COMPANIES IN PLACE AP&L (AND) RATES IN PLACE j LP&L (WATERFORD 3) RATES IN PLACE

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O DECOMMISSIONING COSTS AND FUNDING ARE THE RESPONSIBILITY 0F THE OWNERS

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__,____.,__.___,_____,__j J1l4 MISC 880610_ _16_ . _._.

OPEN LEGAL ISSUES ,

o MP&L RATE CASE APPEAL TO U.S. SUPREME COURT o N0 PSI PRUDENCE DISALLOWANCE BY NEW ORLEANS CITY COUNCIL l

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c INTERACTIONS WITH STATE AND .

LOCAL OFFICIALS AND REGULATORS 0 PROPOSED CONSOLIDATION HAS BEEN DISCUSSED WITH STATE GOVERNORS, ATTORNEY GENERALS, AND PUBLIC SERVICE COMMISSIONS 0 NO APPARENT OPPOSITION O WILL CONTINUE TO KEEP THESE GROUPS INFORMED, AS WELL AS COMMUNITY LEADERS AND LOCAL POLITICAL LEADERS BY MEETINGS, TALKS AND NEWS RELEASES e

1 1

1 1

21

_ . J14 MISC 880610. - __18_ _ _ . _ . , __ _ _ _ _ , ._. _ _ _ . ____ _

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o EFFECTS ON THE -

GGNS LICENSE O THE GGNS ORGANIZATION IS UNCHANGED AS A RESULT OF THE PROPOSED LICENSE AMENDMENTS.

O THE SERI NUCLEAR ORGANIZATION CHANGES BY HAVING ADDITIONAL NUCLEAR EXECUTIVES REPORT TO THE PRESIDENT AND CEO, o THE SYSTEM'S NUCLEAR EXECUTIVES AND THE PRESIDENT AND CEO OF SERI IN HIS ROLE AS MSU SYSTEM EXECUTIVE-NUCLEAR, ALREADY HAVE WELL DEFINED FUNCTIONAL RELATIONSHIPS.

O GGNS WILL RECEIVE SAME BENEFITS AS AN0 AND WATERFORD 3 REGARDING IMPROVED UTILIZATION OF SYSTEMWIDE RESOURCES. ,

0 NO OPERATING LICENSE AMENDMENT (INCLUDING TECHNICAL SPECIFICATION)~1S'NEEDED.

O AS NECESSARY, SERI WILL REVISE CHAPTER 13 IN NEXT ANNUAL UPDATE. ,

O SINCE NO NRC ACTION IS REQUIRED ON THE GGNS LICENSE, NO I REVISION TO THE SER ON THE PRIOR GGNS LICENSE TRANSFER IS l NEEDED. l l

l 22 I

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DRAFT SUBMITTAL OUTLINE APPLICATION TO AMEND FACILITY OPERATING LICENSE O GENERAL DESCRIPTION INCLUDING MSU PLANS FOR SERI TO BECOME SYSTEM-WIDE NUCLEAR OPERATING COMPANY.

0 AMENDMENT OF LICENSE [ANO HAs 2 LICENSES DISCUSSED IN THIS SECTION} FOR SERI TO POSSESS, USE AND OPERATE WSES 3 AND ANO UNITS 1 AND 2.

O SPECIFIC CHANGES IN THE LICENSE PER 10 CFR 50.90.

I. GENERAL INFORMATION CONCERNING LICENSE AMENDMENT A. NAME B. ADDRESS C. DESCRIPTION OF BUSINESS OR OCCUPATION D. ORGANIZATION AND MANAGEMENT OF OPERATING CORPORATION DIRECTORS _ (LISTED WITH ADDRESSES) 0FFICERS (LISTED WITH ADDRESSES)

E. ' TECHNICAL QUAllFICATIONS 0 COMMITMENT TO MEET OR EXCEED PRESENT TECHNICAL QUALIFICATIONS 0 ASSUMPTIONS FOR PROPOSED SERI ORGANIZATION 0 SIGNIFICANT ELEMENTS & ADVANTAGES OF PROPOSED SERI ORGANIZATION F. STATEMENT OF PURPOSES FOR THE LICENSE AMENDMENT 0 EXPECTED BENEFITS CONSOLIDATION OF NUCLEAR OPERATING EXPERTI'oE

& EXPERIEN'.E CONSISTENT VISION FOR PHILOSOPHY OF OPERATION 23

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1 MORE EFFECTIVE COMMUNICATION ("LESSONS LEARNED") -

NON-NUCLEAR SUPPORT FUNCTIONS SPECIALIZED / FOCUSED

- HIGHER LEVEL OF EMPLOYEE PERFORMANCE, COMPETITIVE ENVIRONMENT 1

- NUCLEAR FOCUSED SALARY STRUCTURE, CAREER PATH POLICIES / PROCEDURES.

l G. FINANCIAL CONSI'DERATION_

l O INTERRELATIONS ESTABLISHED BY OPERATING AGREEMENTS

- SERI IS NOT THE OWNER, BUT IS OPERATOR .

AP&L/LP&L RETAIN AUTHORITY TO DIRECT SHUTDOWN AP&L/LP&L RETAIN COSTS RESPONSIBILITIES AP&L/LP&L CONTINUE TO BE SUBJECT TO JURISDICTION OF ECONOMIC REGULATORY AUTHORITIES.

H. ANTITRUST CONSIDERATIONS O No IMPACT ON EXISTING OWNERSHIP 0 WILL NOT ALTER ANY ANTITRUST LICENSE CONDITIONS ,

O NO ANTITRUST REVIEW REQUIRED I. RESTRICTED DATA 0 NONE ,

II, SPECIFIC INFORMATION REGARDING RELATED ISSVES A, EMERGENCY PLANNING 0 SERI TO ASSUME RESPONS!BillTY FOR EMERGENCY PLANNING l 0 NO CHANGES IN ONSITE ORGANIZATIONS OR PLANS 0 DETAILED TRANSITION PLANS AND SERVICE AGREEMENTS 0 TRANSFER OF AGREEMENTS WITH QUTSIDE ORGANIZATIONS 0 NO DECREASE IN EFFECTIVENESS OF PLANS 24

.~ .-

B, GENERAL DESIGN CRITERION 17 ,

O NO CHANGE IN OWNERSHIP OF 0FFSITE POWER SYSTEMS 0 SERVICE AGREEMENTS TO SPECIFY ARRANGEMENTS FOR PROVIDING CONTINUED SOURCE OF OFFSITE POWER ARRANGEMENTS FOR CONTROLLIK. INTERFACES OF RESPONSIBILITIES ,

0 ADEQUATE INDEPENDENT SOURCES OF OFFSITE POWER WILL CONTINUE TO BE PROVIDEDs C. EXCLUS10N AREA O SERI WILL HAVE AUTHORITY TO CONTROL ALL ACTIVITIES WITHIN EXCLUSION AREA 0 SERVICE AGREEMENTS WITH OWNERS 0 NO CHANGE FROM EXISTING EXCLUSION AREA C0t!TROLS AS STATED IN THE FSAR (EXCEPT FOR CLARIFICATION ON SPECIAL CASES SUCH AS WATERFORD 1 AND 2)

D. SECURITY 0 SERI TO ASSUME RESPONSIBILITY FOR IMPLEM5NTAT10N OF l

SECURITY PLANS l

0 TRANSFEh 0F AGREEMENTS WITH OUTSIDE AGENCIES i 0 NO DECREASE IN EFFECTIVENESS OF PLANS E. QU'AllTY ASSURANCE PROGRAM O SERI TO ASSUME RESPONSIBILITY FOR QUALITY ASSURANCE PROGRAMS O NO AFFECT ON ORGANIZATION, STRUCTURE AND FUNCTION OF QUALITY ASSURANCE GROUPS 0 NO REDUCTION IN COMMITMENTS IN OUALITY ASSURANCE PROGRAM DESCRIPTIONS 25

. _ J14 MISC 880610 _ 22_ _ - _ . - _ - -

_ . ~ _-

s.

F. FINAL SAFETY ANALYSIS REPORT 0 WITH EXCEPTION OF AREAS DISCUSSED IN PROPOSED LICENSE AMENDMENTS, NO CHANGE IN INFO IN FSAR 0 CHANGES MADE TO FSARS AFTER LICENSE AMENDMENTS ARE ISSUED, IN ACCORDANCE WITH REGULATIONS G. TRAINING 0 SERI TO ASSUME RESPONSIBILITY FOR EXISTING TRAINING PROGRAMS 0 NO IMPACT ON COMPLIANCE WITH OPERATOR REQUALIFICATION OR INPO ACCREDITATION O NO DECREASE IN SCOPE OF APPROVED OPERATOR REQUALIFICATION PROGRAMS H. ENGINEERING SUPPORT

-0 ENGINEERING DEDICATED TO NUCLEAR ORGANIZATIONS 0 ENGINEERING ORGAHiZATIONS TO TRANSFER INTACT TO SERl; DEDICATION TO EACH HUCLEAR ORGANIZATION UNCHANGED 0 NO DEGRADATION OF ENGINEERING SUPPORT FUNCTION III. NO SIGNIFICANT HAZARDS CONSIDERATION EVALUATION j A. PROPOSED CHANGE O REVISES FACILITY OPERATING LICENSE AUTHORIZES SERI TO ACT ON BEHALF,OF AP&L/LP&L

- INCLUDES PHYSICAL CONSTRUCTION, OPERATION AND MAINTENANCE OF THE FACILITY B. BACKGROUND 0 BENEFITS CONSOLIDATION OF NUCLEAR OPERATING EXPERTISE AND EXPERIENCE 26 J14 MISC 880610 - 23

>> \

CONSISTENT VISION FOR PHILOSOPHY OF OPERATION .

j MORE EFFECTIVE COMMUNICATION ("LESSONS LEARNED")

NON-NUCLEAR SUPPORT FUNCTIONS SPECIALIZED / FOCUSED

- HIGHER LEVEL OF EMPLOYEE PERFORMANCE, I COMPETITIVE ENYlRONMENT

- NUCLEAR FOCUSED SALARY STRUCTURE, CAREER PATH POLICIES /PR'OCEDURES ,

l C. ANALYSIS 0 N0' IN. CREASE IN THE PROBABILITY OR CONSEQUENCES OF AN ACCIDENT PREVIOUSLY EVALUATED TECHNICAL QUALIFICATIONS AT LEAST EQUIVALENT TO l PRESENT  !

1 PERSONNEL QUALIFICATIONS ARE UNCHANGED CLEAR MANAGEMENT CONTROL AND EFFECTIVE LINES OF l AUTHORITY AND. COMMUNICATIONS l 1

NO PHYSICAL CHANGES TO FACILITIES NO CHANGES TO LCO'S, LIMITING SAFETY. SYSTEM SETTING OR SAFETY LIMITS

- ONLY ADMINISTRATIVE CHANGES TO QA PROGRAM, EMERGENCY PLANS, SECURITY PLANS AND TRAINING PROGRAMS AGREEMENTS WILL ENSURE CONTINUED COMPLIANCE WITH.

GDC 17 AND COOTROL OF EXCLUSION AREAS 0 WILL NOT CREATE THE POSSIBILITY OF A NEW OR DIFFERENT KIND OF ACCIDENT DESIGN AND DESIGN BASIS WILL REMAIN THE SAME PLANT SAFETY ANALYSES REMAIN VALID l

l 27 J14 MISC 880610 - 24 _ _ _ _ . . . _ . . _ . _ . _ _ _ __ _ ___

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0 WILL NOT INVOLVE A REDUCTION IN A MARGIN OF SAFETY NO CHANGES IN DESIGN OR OPERATION OF THE PLANTS D. CONCLUSION O BASED ON ANALYSIS,. PROPOSED CHAT!GES MEET THE REQUIREMENTS OF 10CFR50,92(C) AND DO NOT INVOLVE A SIGNIFICANT HAZARDS CONSIDERATION, IV, CONSENT .

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