ML20203M969

Forwards Amend to Application for Ol,Reflecting Transfer of Control & Performance of Licensed Activities to New Nuclear Generating Co,Sys Energy Resources,Inc.Fee Paid

ML20203M969
Person / Time
Site:	Grand Gulf
Issue date:	09/02/1986
From:	Kingsley O MISSISSIPPI POWER & LIGHT CO.
To:	Harold Denton Office of Nuclear Reactor Regulation
Shared Package
ML20203M971	List: ML20203M969 ML20203M972
References
AECM-86-2-0003, AECM-86-2-3, TAC-62755, NUDOCS 8609050232
Download: ML20203M969 (5)

Text

j MISSISSIPPI POWER & LIGHT COMPANY Helping Build Mississippi ESAMllddE P. O. B O X 16 4 0, J A C K S O N, MIS SIS SIP PI 39215-1640 September 2, 1986 O. D. KINGSLEY, J R.

VICE PREllOENT NUCLE AR OPERATIO.e5 U. S. Nuclear Regulatory Commission Office of Nuclear Reactor Regulation Washington, D. C.

20555 Attention: Mr. Harold R. Denton, Director

SUBJECT:

Grand Gulf Nuclear Station Unit 2 Docket No. 50-417 Proposed Amendment to the Construction Pennit AECM-86/2-0003 hississippi Power & Light Company ("MP&L"), System Energy Resources, Inc.

(formerly Middle South Energy, Inc.), and South Mississippi Electric Power Association (collectively " Joint Licensees") hereby submit this application for an amendment to Construction Permit No. CPPR-119 for Grand Gulf Nuclear Station

("GGNS"), Unit 2.

The application requests that the GGNS Unit 2 Construction Permit be amended to reflect transfer of control and performance of licensed 3ctivities from MP&L to a new nuclear generating company -- System Energy Resources, Inc. (SERI) -- which is the new name of Middle South Energy, Inc.

("MSE").

The MP&L nuclear organization will be transferred, virtually intact, to SERI, and the same MP&L organization and staff which is currently responsible for construction of GGNS Unit 2 will continue those responsibilities as part of SERI.

The Enclosure is the application to amend the Construction Permit, containing the information specified as necessary by 10 C.F.R. 50.80 and 10 C.F.R. 50.90 to effect the requested transfer and amendment. Also enclosed are the proposed changes to the Construction Permit necessary to show transfer of MP&L's responsibilities to SERI.

Essentially, the enclosed application requests that the NRC amend Construction Permit No. CPPR-119 to substitute SERI for MP&L as the licensee authorized to construct GGNS Unit 2.

As noted in the Enclosure, MP&L has made timely applications i.o extend the expiration date of the permit, the most recent of which is undergoing NRC review.

Information in the Grand Gulf Nuclear Station Final Safety Analysis Report ("FSAR") describes the management structure of the Grand Gulf Nuclear Station Project.

Updated FSAR material conforming to this application will be provided in the appropriate annual FSAR update as required by 10 C.F.R. 50.71(e) for GGNS Unit 1.

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AECM-86/2-0003 Page 2 The change in name and function of Middle South Energy Inc. was informally discussed with you, members of your staff, Mr. Stello, the Region II Inspection and Enforcement Staff, and the NRC Commissioners by Mr. William Cavanaugh, III, President and Chief Operating Officer of MP&L. These changes are being made to provide a stronger and more consolidated focus on management of the Grand Gulf Nuclear Station. For example, Mr. Cavanaugh, as President and Chief Executive Officer of SERI, will not be diverted to matters associated with non-nuclear activities such as transmission, distribution, and fossil production. The changes also offer human resource benefits througn the separation of the personnel policies for the nuclear employees of SERI from those of the non-nuclear employees of MP&L. The establishment of SERI as the owner, constructor and operator of Grand Gulf is also entirely consistent with the Commission's views expressed in recent years calling for strong and focused management of licensed activities for power reactors. A more detailed discussion of the purposes and benefits of the organizational change is provided in the Enclosure.

As discussed in the Enclosure, the proposed Amendment involves two aspects:

(1) a technical amendment involving basically designation of SERI as the constructor of GGNS Unit 2 and (2) an amendment to the antitrust conditions presently included in the construction permit. Joint Licensees propose a bifurcated review of the application allowing issuance and effectiveness of the technical license amendment at the earliest possible date. This will likely be in advance of completion of the review of proposed changes to the antitrust license conditions. Under this approach, MP&L would remain on the amended permit and subject to the existing antitrust conditions until such time as the antitrust review is complete.

The bifurcated review is consistent with the public interest in establishing SERI as the constructor for GGNS Unit 2 without undue delay. The change is intended to enhance overall management of the facility.

Also as discussed in the Enclosure, the assumption of responsibilities for Grand Gulf Nuclear Station by SERI requires the consent of the SERI's creditors under the terms of various bank loan agreements and may require approval of other agencies in addition to the Nuclear Regulatory Commission.

However, the Joint Licensees anticipate that these consents and possible necessary approvals will be obtained in a timely fashion. Joint Licensees therefore request that the NRC process and approve the enclosed application without delay. Joint Licensees will keep the NRC's Project Manager for the Grand Gulf Nuclear Station informed of the progress of obtaining other approvals and inform the NRC in writing should it appear that these approvals cannot be attained in a reasonable time frame.

Finally, with respect to scheduling, Joint Licensees have filed under separate cover an application to the NRC to amend the GGNS Unit 1 operating license (NPF-29) to conform that license to the changes in responsibilities described in this construction permit 1mendment application. Review of the operating license application will be substantially the same as the review of the enclosed application.

In order to maintain consistency with respect to the licensing status of GGNS Units 1 and 2, and to accurately reflect the revised responsibilities, the operating license and construction permit amendments should be issued by the NRC simultaneously.

J13AECM86082501 - 2

AECM-86/2-0003 Page 3 In accordance with 10 C.F.R. 50.30, three (3) signed originals and forty (40) copies of the application are enclosed.

In accordance with the requirements of 10 CFR 170.21, we have determined that the application fee is $150. A remittance of $150 is attached to this letter.

Yours

uly, s

ODK:vog Enclosure cc: Mr. T. H. Cloninger (w/a)

Mr. R. B. McGehee (w/a)

Mr. N. S. Reynolds (w/a)

Mr. H. L. Thomas (w/a)

Mr. R. C. Butcher (w/a) i Mr.JamesM. Taylor, Director (w/a)

Office of Inspection & Enforcement U. S. Nuclear Regulatory Commission i

Washington, D. C.

20555 i

Dr. J. Ncison Grace, Regional Administrator (w/a)

U. S. Nuclear Regulatory Commission Region II-101 Marietta St., N. W., Suite 2900 Atlanta, Georgia 30323 Dr. Alton B. Cobb (w/a)

State Health Officer State Board of Health Box 1700 Jackson, Mississippi 39205 i,

i I

i J13AECM86082501 - 3

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ZZZZ DISTRIBUTION FOR 50-416/50-417 Letter & Enclosure LA BWR PD#4

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PD BWR PD#4 PM L. Kintner 1

ASLAP 5

ASLBP 1

OGC 1

PA 1

RGN #2 D. Collins 1

OGC M. Young 1

OGC J. Rutberg 1

SP J. Saltzman 1

IE EPB R. Van Niel 1

NRR H. Denton 1

DBL R. Bernero 1

BWR ADTS 1

NRR BWR EICSB 1

NRR BWR FOB 1

LPDH 1

PDR 1

NSIC 1

e DISTRIBUTION PER L. KINTER, PM

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