ML20203M972
| ML20203M972 | |
| Person / Time | |
|---|---|
| Site: | Grand Gulf  |
| Issue date: | 09/02/1986 |
| From: | Kingsley O MISSISSIPPI POWER & LIGHT CO. |
| To: | |
| Shared Package | |
| ML20203M971 | List: |
| References | |
| TAC-62755, NUDOCS 8609050235 | |
| Download: ML20203M972 (25) | |
Text
BEFORE THE UNITED STATES NUCLEAR REGULATORY COMISSION CONSTRUCTION PERMIT NO. CPPR-119 DOCKET NO. 50-417 IN THE MATTER OF MISSISSIPPI POWER & LIGHT COMPANY and MIDDLE SOUTH ENERGY, INC.
and SOUTH MISSISSIPPI ELECTRIC POWER ASSOCIATION AFFIRMATION I, 0. D. Kingsley, Jr., being duly sworn, stated that I am Vice President, Nuclear Operations of Mississippi Power & Light Company; that I am authorized by Mississippi Power & Light Company on behalf of Mississippi Power
& Light Company, System Energy Resources, Inc. (formerly Middle South Energy.
Inc.), and South Mississippi Electric Power Association to sign and file with the Nuclear Regulatory Connission, this application for amendment of the Construction Pennit of the Grand Gulf Nuclear Station; that I signed this application as Vice President, Nuclear Operations of Mississippi Power & Light Company; and that the statements made and the matters set for therein are true and correct to the best of my knowledge, information belief.
-s STATE OF MISSISSIPPI COUNTY OF HINDS in and for the County and State above named, this fh8 day ofSUBSCRIBED AND SWORN T0 b Mvz? f/*,
, 1986.
(SEAL) 8609050235 860902 PDR ADOCK 0500 7
My commission expires:
96f27MT7 J13AECM86082501 - 5
, - - - - _ - _.. _. - =
UNITED STATES OF AMERICA NUCLEAR REGULI. TORY COMMISSION In the Matter of
)
MISSISSIPPI POWER & LIGHT
)
COMPANY, et al.
)
Docket No. 50-417
)
(Grand Gulf Nuclear Station.
)
Unit No. 2)
)
APPLICATION TO AMEND FACILITY CONSTRUCTION PERMIT NO. CPPR-119 Mississippi Power & Light Company ("MP&L"), Middle South Energy. Inc. ("MSE"), and South Mississippi Electric Power Association ("SMEPA") (collectively " Joint Licensees") are the holders of Construction Permit No. CPPR-119 for Grand Gulf Nuclear Station ("GGNS"), Unit 2.
The construction permit presently authorizes MP&L to construct GGNS Unit 2 in accordance with the terms and conditions of the constructicn permit.
Effective July 28, 1986, Middle South Energy, Inc. was renamed and reconstituted as a new nuclear generating company.
The newly named company, System Energy Resources, Inc.
("SERI"), remains a subsidiary of Middle South Utilities, Inc.
Upon necessary regulatory approvals, and transfer of 1/
Timely applications to amend the expiration date of the permit have been made, the most recent of which is undergoing NRC review.
Pursuant to 10 CFR $2.109, the permit thus remains in effect pending completion of this NRC review.
J10 MISC 860825 - 1
)
, personnel, SERI, as majority owner of GGNS Unit 2, will succeed MP&L as constructor of GGNS Unit 2.
This 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.
Ownership of GGNS Unit 2 will remain unchanged, with SMEPA retaining its ten percent interest and SERI (formerly called MSE) retaining its ninety percent ownership interest. The MP&L nuclear organization (plant and headquarters) currently responsi-ble for GGNS Unit 2 will be transferred virtually intact to SERI, which will then assume exclusive responsibility for and control i
over construction of the facility.
Pursuant to 10 C.F.R. 5550.80 and 50.90, Joint Licensees hereby request that the Nuclear Regulatory Commission amend Construction Permit No. CPPR-119 to substitute SERI for MP&L as constructor of GGNS Unit 2. Specifically, Joint Licensees request that:
(1) Pursuant to Section 103 of the Atomic Energy Act of 1954 as amended ("the Act") and 10 C.F.R. Part 50 " Domestic Licensing of Production and Utilization Facilities," System Energy Resources, Inc. be authorized to construct GGNS Unit 2 at the designated location in Claiborne County, Mississippi, in accordance with the procedures and limitations set forth in the construction permit; i
(2) Mississippi Power & Light Company having been replaced by System Energy Resources, Inc., as constructor of GGNS Unit 2 and thus deleted as a licensee for GGNS Unit 2, the antitrust conditions in the license applicable to Mississippi Power & Light Company be deleted; and c
2/
The proposed changes to the GGNS Construction Permit to reflect the designation of SERI as a nuclear generating company responsible for construction of GGNS Unit 2 are attached.
J10 MISC 860825 - 2 i
(3) Middle South Energy, Inc. having been renamed System Energy Resources, Inc., the references to MSE also be deleted from Construction Permit No. CPPR-119.
Set forth below is the information in support of this application.
I.
GENERAL IhTORMATION CONCERNING LICENSE AMENDMENT A.
Name: System Energy Resources, Inc.
B.
Address: Post Office Box 23054 Jackson, Mississippi 39215 C.
Description of Business or Occupation SERI, formerly Middle South Energy, Inc. ("MSE"), is.a wholly owned subsidiary of Middle South Utilities, Inc. ("MSU").
MSE was formed in 1974 to construct, finance and own base-load generating units for the operating subsidiaries of MSU. To date, MSE's business has comprised owning and financing its ninety percent ownership interest in the Grand Gulf Nuclear Station. On July 22, 1986, the Boards of Directors of MSU and MSE took action to rename MSE as SERI as discussed above, and to authorize transferring to SERI all responsibility for the construction of CGNS Unit 2 now assigned to MP&L upon the receipt of necessary regulatory approvals.
D.
Organization and Management of Operating Corporation:
SERI is a corporation organized and existing under the laws of the State of Arkansas.
Its principal office is located in Jackson, Mississippi.
J10 MISC 860825 - 3
. All directors and principal officers of SERI are citizens of the United States. Their names and addresses are as follows:
Directors Mr. E. A. Lupberger Chairman System Energy Resources, Inc.
225 Baronne Street New Orleans, Louisiana 70112 Mr. William Cavanaugh, III President and Chief Executive Officer System Energy Resources, Inc.
Post Office Box 23054 Jackson, MS 39215 Mr. D. C. Lutken Chairman of the Board and Chief Executive Officer Mississippi Power & Light Company P. O. Box 1640 Jackson, MS 39215-1640 Mr. J. M. Cain President and Chief Executive Officer Louisiana Power & Light Cor.pany/
New Orleans Public Service Inc.
Post Office Box 60340 New Orleans, Louisiana 70160 Mr. J. L. Maulden President and Chief Executive Officer Arkansas Power & Light Company Post Office Box 551 Little Rock, Arkansas 72203 Principal Officers Mr. William Cavanaugh, III President and Chief Executive Officer Systam Energy Resources, Inc.
Post Office Box 23054 Jackson, Mississippi 39215 3/
Additional directors (including outside directors) and officers may be named at a later date.
J10 MISC 860825 - 4 4
Mr. Edwin Lupberger Chairman System Energy Resources, Inc.
225 Baronne Street New Orleans, Louisiana 70112 Mr. R. Drake Keith Senior Vice President-Chief Financial Officer System Energy Resources, Inc.
225 Baronne Street New Orleans, Louisiana 70112 Upon issuance of the construction permit amendment, the following officers of MP&L will become officers of System Energy Resources, Inc.:
Mr. Oliver D. Kingsley, Jr.
Vice President Nuclear Operations System Energy Resources, Inc.
Post Office Box 23054 Jackson, Mississippi 39215 Mr. Ted H. Cloninger Vice President Nuclear Engineering & Support System Energy Resources, Inc.
Post Office Box 23054 Jackson, Mississippi 39215 E.
Technical Qualifications The technical qualifications of SERI to carry out its responsibilities under the construction permit, as amended, will be the same as the technical qualifications of MP&L presently.
MP&L will continue to act as the constructor of GGNS Unit 2, pending the amendment of the construction permit. Upon issuance of the amendment, the agency agreement between SERI and MP&L under which MP&L is authorized to construct GGNS Unit 2 on behalf of SERI will be terminated and the MP&L nuclear organization, including the J10 MISC 860825 - 5
__. Nuclear Operations and Nuclear Engineering & Support Departments, will be transferred to and employed by SERI, which currently has no employees other than certain officers serving in a dual capacity. Thus, the same MP&L organization and staff that are currently responsible for constructing GGNS Unit 2 will continue those responsibilities'in the employ of SERI. In addition, all necessary support functions such as finance, administration, legal, communications, internal auditing, purchasing, contract administration and security will be integral to and directly employed by SERI.
Proposed modifications to the construction permit for GGNS Unit 2 are attached. The only change between the current and proposed structure for plant construction and offsite nuclear support is a change in title of the senior officer from President and Chief Operating Officer of MP&L to President and Chief Executive Officer of SERI. The duties of the position will now be limited to those necessary for the operation and maintenance of GGNS 5
Unit 1 and the management of the construction of GGNS Unit 1.
The 4/
See GGNS Unit 1 Technical Specifications Figure 6.2.1-1, Offsite Organization, part of Attachment I to the application to amend Facility Operating License No. NPF-29 transmitted to the Nuclear Regulatory Commission by MP&L Correspondence No. AECM-86/0269 dated September 2, 1986.
5/
The Joint Licensees have filed under separate cover an appli-cation to the NRC to amend the GGNS Unit 1 operating license (NPF-29) to conform that license to these changes in respon-sibilities.
J10 MISC 860825 - 6
.. President and Chief Executive Officer of SERI will report directly to the Chairman of the Board of SERI. There will be no change in the people who construct GGNS Unit 2 as a result of the change.
Therefore, implementation of the change proposed by this application will cause no adverse change in the current technical qualifications.
In fact, Joint Licensees believe that the transfer of construction responsibility for GGNS Unit 2 to SERI will provide benefits inherent in an integrated nuclear generating company, including the concentration of leadership, management, financial, engineering and operating talents solely on nuclear plant opera-tions and construction. This initiative is thus consistent with the views and perspectives of the Nuclear Regulatory Commission in recent years, calling for strong and focused management of power reactor construction and operations.
F.
Financial Qualifications The contractual agreements between MSE and SMEPA as joint owners regarding all costs for the design, construction, and related fuel cycle of GGNS Unit 2 will not be altered by, or in connection with, issuance of the requested amendment to the GGNS Unit 2 construction permit. Accordingly, this application does not raise financial qualifications considerations.
J10 MISC 860825 - 7
-.. G.
Statement of Purposes for Which Transfer is Requested The Joint Licensees request that the authority under the construction permit to construct GGNS Unit 2 be transferred fr'om MP&L to SERI and that MP&L be deleted as a licensee of the unit. Benefits of the requested change include the following:
(1) All executives of SERI will be able to focus full attention on the safe and efficient operation of GGNS Unit I and construction of GGNS Unit 2.
Duties associated with the management of non-nuclear activities will be eliminated for these executives. Management will retain all authority commensurate with their responsibility to operate SERI as a nuclear generating company and will be involved on a full-time basis in day-to-day 4
nuclear construction and operations.
(2) Salary structures, career paths, policies, and procedures for nuclear employees of SERI will be separate and distinct from MP&L's non-nuclear employees. This will permit nuclear managers to focus entirely upon the special needs, qualifications and requirements of nuclear employees. Human resource and compensa-tion policies tailored exclusively to nuclear construction and operations will allow SERI to be competitive in the market for skilled nuclear proressionals without directly influencing, or being bound by, personnel policies and procedures governing non-nuclear personnel. The ability to attract superior nuclear talent and retain quality individuals once recruited will have a direct positive impact on the quality of GGNS construc-tion and operations.
(3) Certain corporate support functions such as financial, administration, legal, corporate communications, and internal auditing will become specialized and focused on the requirements of a nuclear generating company and thereby be more effective in their support of GGNS.
J10 MISC 860825 - 8
.. (4) All responsibility for the licensed performance of GGNS Unit 2 will reside within SERI, as the principal owner of the unit, rather than within a contracted agent such as MP&L. Coordination of policies and responsibilities for construction of GGNS Unit 2 will therefore be enhanced while control of plant construction will be centralized.
Excellence in nuclear plant construction and integrated comprehensive services will be afforded through full-time, dedicated nuclear management.
H.
Nature of Transaction Necessitating or Making Desirable the License Transfer A Service Agreement, effective June 21, 1974, between MSE and MP&L provided that MP&L would act as agent for MSE for the design, construction, maintenance and operation of the Grand Gulf Nuclear Station. Effective as of 1980, SMEPA acquired a 10% undivided ownership interest in the Grand Gulf Nuclear Station and became a co-licensee of the nuclear facility. Pursuant to the ownership agreement between MSE and SMEPA, MSE is authorized to act as agent for SMEPA for matters relating to the design, construction, maintenance, operation and licensing of the Grand Gulf Nuclear Station. Upon the effective date of the requested amendment, the Service Agreement between MSE (now SERI) and MP&L will be terminated,*and SERI will assume sole responsibility i
for the design, construction, maintenance, operation and licensing of the GGNS Unit 2.
SERI will continue to act as SMEPA's agent in-carrying out these responsibilities.
I.
Restricted Data This application does not contain any Restricted Data or otner defen$e information, and it is not expected that any J10 MISC 860825 - 9
!- will become involved. However, SERI agrees that it will appropriately safeguard such information if it does become involved and it will not parmit any individual to have access to Restricted Data until the Civil Service Commission [now Office of Personnel Management) shall have made an investigation and report to the Nuclear Regulatory Commission on the character, associations and loyalty of such individual, and the Nuclear Regulatory Commission shall have determined that permitting such person to have access to Restricted Data will not endanger the common defense and security.
J.
Antitrust Conditions The transfer from MP&L to SERI of construction responsibility for GGNS Unit 2 requested by this application necessitates amend-ments to the antitrust license conditions included in the GGNS Unit 2 construction permit. The antitrust conditions currently apply to MP&L. Following the transfer of construction responsibility to SERI, it is proposed that MP&L will not remain an NRC licensee and the conditions applicable to MP&L thus will be inappropriate.
In any event, MP&L believes that the principles of the antitrust conditions have been implemented by it by interconnection agreements entered into with the other two electric power generation, transmission, or distribution entities whose members constitute all the Entities, as such term is defined in the permit, in the Western Mississippi Area, the relevant J10 MISC 860825 - 10 S
r
, market defined in the antitrust conditions. Based on these circumstances, the existing antitrust conditions should be deleted.6 The majority of the existing antitrust conditions pertain to interconnections, bulk power transactions, and transmission services. " Western Mississippi Area" is defined for purposes of the antitrust conditions in Condition D.1.(a).
The two relevant Entities in the area are South Mississippi Electric Power Association ("SMEPA") (the minority owner of GGNS) and the Municipal Energy Agency of Mississippi ("MEAM").
On July 18, 1979, MP&L entered into a long-term Interconnection Agreement with SHEPA.. On July 1,1984, MP&L entered into a 8
similar Interconnection Agreement with MEAM. Letter Agreements 6/
There is no doubt that Commission regulations (e.g.,
10 C.F.R. 55 2.200 - 2.204, 2.206) give the Director of the Office of Nuclear Reactor Regulation authority to modify license conditions--including antitrust license conditions--
where necessary to reflect changing circumstances.
- See, e.g., Toledo Edison Company, et al. (Davis Besse Nuclear Power Station, Units 1, 2 and 3), ALAB-560, 10 NRC 265, 294 (1979); Consolidated Edison Co. of New York (Indian Point Station, Unit No. 2), LBP78-21, 7 NRC 1048 (1978).
7/
See Attachment 3 of the application to amend Facility Operating License No. NPF-29 transmitted to the Nuclear Regulatory Commission by MP&L Correspondence No.
AECM-86/0269 dated September 2, 1986.
8/
See Attachment 4 of the application to amend Facility Operating License No. NPF-29 transmitted to the Nuclear Regulatory Commission by MP&L Correspondence No.
AECM-86/0269 dated September 2, 1986.
J10HISC860825 - 11
F relating to the obligations of MP&L under the antitrust conditions have also been signed by the individual municipal members of MEAM (copies attached to the MEAM Interconnection Agreement). MP&L submits that the Interconnection Agreements and Letter Agreements implement the principles in the antitrust conditions of the GGNS Unit 2 construction permit. These agreements will remain in effect following the amendment of the permit to add SERI and delete MP&L. The Interconnection Agreements, in light of developments subsequent to their execution, are long-term contracts. By contract dated June 15, 1984, MP&L has agreed with MEl.M not to terminate the MEAM Interconnection Agreement prior to the date of permanent cessation of operation of GGNS Units 1 and 2.
By its terms, the SMEPA Interconnection Agreement was extended to the date of cessation of operation of GGNS Units 1 and 2 upon SMEPA's acquisition of an ownership interest in the plant.
MP&L believes that these agreements assure, among other things, adequate interconnection points and coordination between MP&L and the entities of the Western Mississippi Area. The agreements also provide for partial requirements power as well as other necessary bulk power supply services, and include provisions for emergency, economy, reserve capacity, replacement energy, and scheduled maintenance services. Under the agreements, all parties are also obligated to establish and maintain adequate generating capacity reserves on a nondiscriminatory basis, and MP&L is obligated under circumstances consistent with the antitrust J10 MISC 860825 - 12
r-conditions to provide bulk power transmission services in such amounts as SMEPA and MEAM may specify.9 SERI will be a nuclear generating company upon issuance of the proposed amendment to the GGNS Unit 2 construction permit.
SERI's responsibilities and authority will not involve power distribution, interconnections, bulk power sales, and trans-mission services.
In light of this and the existing Interconnec-tien Agreements between MP&L (which will remain a non-nuclear generating company as well as a transmission and distribution company) and SMEPA and MEAM, the current antitrust conditions should be removed from the permit, with one exception. The exception is part of Condition 3.D.4 regarding participation in ownership of GGNS and any future nuclear power plants. SERI is able to assume this condition and consents to do so.
In order to facilitate the Staff's review of the proposed amendment pertaining to the antitrust conditions, MP&L and SERI will, as necessary, supplement this aspect of the amendment 9/
In this regard, see the letter from MEAM's counsel to H.R.
Denton, dated July 19, 1983. As stated in that letter, MEAM was satisfied that MP&L has worked in good faith with MEAM to satisfy the antitrust license conditions. A copy of the letter is Attachment 5 to the application to amend Facility Operating License No. NPF-29 transmitted to the Nuclear Regulatory Commission by MP&L Correspondence No.
AECM-86/0269 dated September 2, 1986.
J10 MISC 860825 - 13
y
, application with information in response to any Staff request during the Staff review of the matter. O K.
Bifurcation of the Amendment Review The proposed amendment involves two distinct aspects, viz.,
(1) the technical aspect involving basically the transfer to SERI of MP&L's nuclear organization and its responsibilities as plant constructor, and (2) the antitrust conditions. Joint Licensees request that the safety review of the amendment application by the NRC Staff and any antitrust review by the Staff (and the Department of Justice) be bifurcated to recognize this distinction.
Specifically, the Staff review of the technical aspect should commence immediately following receipt of this application. The review should be completed, and the amendment issued and made effective at the earliest date consistent with 10 C.F.R. 550.90 and 50.92, whether or not any antitrust review is completed, with the present antitrust conditions remaining in place and applicable to MP&L pending completion of that review. Bifurcation in this manner is appropriate and in the public interest because establishment of SERI as a nuclear generating company for GGNS Unit 2 represents an enhancement in overall management of the plant that should be 10/ While the ownership agreement between MSE and SMEPA authorizes MSE to act as SMEPA's agent in licensing activities for GGNS, MSE acknowledges that SMEPA, as an entity affected by the antitrust conditions, may freely express its views to the NRC (or the Department of Justice) on thr. proposal to delete the antitrust conditions as they bear on MP&L.
J10 MISC 860825 - 14
T effected as soon as possible. The change is consistent with Commission guidance emphasizing the public safety advantages of nuclear generating companies as licensees of nuclear power plants.
Recognizing that the current antitrust conditions apply only to MP&L, and that under a bifurcated Staff review SERI likely will be the licensee prior to completion of the antitrust review, Joint Licensees suggest that the NRC condition the technical amendment as appropriate to assure that any subsequent findings from the antitrust review will be given full force and effect. Compare 42 U.S.C. 52135c(8). The technical amendment could be issued substituting SERI for MP&L as constructor of GGNS Unit 2, with a condition providing for removal of the antitrust conditions applicable to MP&L only upon completion of the antitrust review and a finding that there are no significant antitrust implications.11 11/ MP&L submits that following final NRC approval of the substitution of SERI for MP&L as licensee, MP&L will no longer be a licensee and therefore will not be subject to NRC jurisdiction. Nor will there be any nexus between activities under the license and the obligations imposed on MP&L by the license conditions.
J10 MISC 860825 - 15
..- Although the schedule for any appropriate review of the anti-trust aspects of the amendment application need not take the maxi-mum period provided by law, experience suggests that the review may take longer than will be needed for the technical review.
Therefore, under the bifurcated approach, this review should be conducted on a separate, parallel track from the technical review, beginning with this application. Joint Licensees submit that the bifurcated approach offers the most beneficial, efficient, and logical solution, and is clearly in the public interest. The NRC Staff should determine promptly the procedures to be followed in reviewing this application.
II.
EFFECTIVE DATE The assumption of responsibilities for the construction of GGNS Unit 2 by SERI requires the consent of MSE's creditors under the terms of various bank loan agreements and may require the approvals of other agencies in addition to the Nuclear Regulatory Commission. These consents and, if required, additional approvals are anticipated to be obtained in an expeditious manner.
In any event, it appears likely that NRC approval will be the critical path regulatory approval for SERI to assume its responsibilities. Therefore, the Joint Licensees request that the NRC approve the proposed technical construction permit amendment without delay. Should it subsequently appear that the other consents or approvals will act be obtained in a timely fashion, the Joint Licensees J10 MISC 860825 - 16 s
r will promptly notify the Commission. Subsequently, changes to the antitrust conditions may also be made, consistent with the bifurcated approach described above.
III. CONSENT MP&L and SMEPA hereby consent to the assumption of responsibilities by SERI as described above:
It is requested that, after the effective date of the amendment, all communication be sent to Mr. Oliver D. Kingsley, Jr.
Vice President Nuclear Operations System Energy Resources, Inc.
Post Office Box 23054 Jackson, Mississippi 39215 The service lists identifying required' distribution of correspondence addressed to the NRC will remain unchanged.
J10 MISC 860825 - 17 l
i
fwTEM ENEKdY Krdoutc&,T*.
M:Z :SS:Pr! FOW:n : L:0::T COMr".NV-M:=L CUT" EN:n0Y, INC.
SOUTH MISSISSIPPI ELECTRIC POWER ASSOCIATION DOCKET NO. 50-417 GRAND GULF NUCLEAR STATION, UNIT 2 CONSTRUCTION PERMIT Construction Permit No. CPPR-119 1.
TheAtomicEnergyCommission(theCommission)havingfoundthat:
A.
The application for construction permit complies with the requirements of the Atomic Energy Act of 1954, as amended, and the rules and regulations of the Commission, there is reasonable assurance that the activities authorized by the permit will be conducted in compliance with the rules and regulations of the Commission, and all required notifications to other agencies or bodies have been duly made; 6pfem Energy Se+ources: tac..
B.
M;;;i;;ippi r:wcr i Li;F.t C;;;;n3, acting for itself and as an agent for Midd'; :;tF, Encr;3, Inc. ;;d South Mississippi Electric Power Association (the applicants or licensees), has described the proposed design of the Grand Gulf Nuclear Station, Unit 2 (the facility), including, but not limited to, the principal architectural and engineering criteria for the design and has identified the major features or components incorporated therein for the protection of the health and safety of the public; C.
Such further technical or design information as may be required to complete the safety analysis, and which can reasonably be left for later consideration, will be supplied in the final safety analysis report; D.
Safety features or components, if any, which require research and development have been described by the applicants and the applicants have identified, and there will be conducted, a research and development program reasonably designed to resolve any safety questions associated with such features or components; E.
On the basis of the foregoing, there is reasonable assurance that (1) such safety questions will be satisfactorily resolved at or before the latest date stated in the application for completion of construction of tbc proposed facility and (ii) taking into consideration the site criteria contained in 10 CFR Part 100, the proposed facility can be constructed and operated at the proposed location without undue risk to the health and safety of the public;
- y< tem Ener 1rf Ke+eveve y, rm.
7 F.
Mi;;i;;fppi rc cr i Li;F.t C; p;n3 is technically qualified to design and construct the proposed facility; G.
The applicants are financially qualified to design and construct the proposed facility; J13 MISC 86082702 - 1
- H.
The issuance of a permit for the construction of the facility will not be inimical to the common defense and security or to the health and safety of the public; and I.
After weighing the environmental economic, technical, and other benefits of the facility against environmental and other costs and considering available alternatives, the issuance of a construction
~
permit (subject to the conditions for protection of the environment.
l set forth herein) is in accordance with 10 CFR Part
.,,,,..rr...,..-.,O of the Commission's regulations and all applicable requirements of said g g 0 have been satisfied.
2.
Pursuant to Section 103 of the Atomic Energy Act of 1954, as amended (the Act), and Title 10, Chapter I, Code of Federal Regulations, Part 50,
" Licensing of Production and Utilization Facilities," and pursuant to the Initial Decision of the Atomic Safety and Licensing Board, dated August 30, 1974, the Atomic Energy Commission (the Commission) hereby issues a i
construction permit to the applicants for a utilization facility designed to operate at 3833 megawatts thermal as described in the application and amendments thereto (the application) filed in this matter by the applicants and as more fully described in the evidence received at the public hearing upon that application. The facility, known as the Grand Gulf Nuclear Station, Unit 2, will be located on the site of Middle South Energy, Inc., in Claiborne County, Mississippi.
3.
This permit shall be deemed to contain and be subject to the conditions specified in Sections 50.54 and 50.55 of said regulations; is subject to all applicable provisions of the Act, and rules, regulations, and orders of the Commission now or hereafter in effect; and is subject to the conditions specified or incorporated below:
A.
The earliest date for the completion of the facility is April 1, i
1983, and the latest date for completion is October 1, 1984.
B.
The facility shall be constructed and located at the site as described in the application, on the east bank of the Mississippi River approximately 25 miles south of Vicksburg in Claiborne. County, Mississippi.
C.
This construction permit authorizes the applicants to construct the facility described in the application and the hearing record, in accordance with the principal architectural and engineering criteria i
and environmental protection commitments set forth therein.
ir Saf ENsenY}at t; the following antitrust conditions:
D.
Thi; p,it i: xb 1.
As used herein:
i l
(a)
" Western Mississippi Area" means the counties of Walthall, Lawrence, Jefferson Davis, Covington, Simpson, Smith, Scott, Leake, Attala, Choctaw, Montgomery, Grenada, Yalobusha, Panola, Tate, DeSoto, Pike, Amite, Wilkinson, Adams, Franklin, Lincoln, Copiah, Jefferson, Claiborr,e, Hinds, Rankin, Madison, j
Yazoo, Warren, Issaquena, Sharkey, Humphreys, Holmes, Carroll, i
J13 MISC 86082702 - 2
INSERT Pending completion of Comission review of the licensees' application to amend
.the permit to delete the following antitrust conditions, and until further order of the Comission, MP&L shall comply with J13 MISC 86082702 - 8
F Leflore, Sunflower, Washington, Bolivar, Tallahatchie, Quitman, Coahoma, and Tunica. An entity shall be deemed to be in the
" Western Mississippi Area" if it has electric power generation, transmission, or distribution facilities located in whole or in part in the above-described area.
(b) " Bulk Power" means the electric power, and any attendant energy, supplied or made available at transmission or subtransmission voltage by one entity to another.
(c)
" Entity" means a person, a private or public corporation, a municipality, a cooperative, an association, a joint stock association or business trust owning, operating or proposing to own or operate equipment or facilities for the generation, transmission or distribution of electricity, provided that, except-for municipalities or rural electric cooperatives, " entity" is restricted to those which are or will be public utilities under the laws of the state in which the entity transacts or will transact business or under the Federal Power Act, and are or will be providing electric service under a contract or rate schedule on file with and subject to the regulation of a state regulatory commission or the Federal Power Commission.
(d)
" Cost" means any operating and maintenance expenses involved together with any ownership costs which are reasonably allocable to the transaction consistent with power pooling practices (where applicable). No value shall be included for loss of revenues from sale of power at wholesale or retail by one party to a customer which another party might otherwise serve.
Cost shall include a reasonable return on Licensees' investment. The sale of a portion of the capacity of a generating unit shall be upon the basis of a rate that will recover to the seller the pro rata part of the fixed costs and operating and maintenance expenses of the unit, provided that, in circumstances in which Licensees and one or more entities in the Western Mississippi Area take an undivided interest in a l
unit in fee, construction costs and operation and maintenance expenses shall be paid pro rata.
2.
(a) Licensees shall interconnect with and coordinate reserves by means of the sale and purchase of emergency and/or scheduled maintenance bulk power with any entity (ies) in the Western Mississippi Area engaging in or proposing to engage in electric bulk power supply on terms that will provide for Licensees' costs in connection therewith and allow the other party (ies) full access to the bener's of reserve coordination.
(b) Emergency service and/or scheduled maintenance service to be provided by each party shall be furnished to the fullest extent available from the supplying party and desired by the party in need. Licensees and each party (ies) shall provide to the other emergency service and/or scheduled maintenance service if and when available from its own J13 MISC 86082702 - 3
r generation and from generation of others to the extent it can do so without impairing service to its customers including other electric systems to whom it has finn commitments.
(c) Licensees and the other party (ies) to a reserve sharing arrangement shall from time to time jointly establish the minimum reserves to be installed and/or provided under contractual arrangements as necessary to maintain in total a reserve margin sufficient to provide adequate reliability of power supply to the interconnected systems of the parties.
If licensees plan their reserve margin on a pooled basis with other Middle South System companies, the reserves jointly established hereunder shall be on the same basis. Unless otherwise agreed upon, minimum reserves shall be calculated as a percentage of estimated peak load responsibility. No party to the arrangement shall be required to maintain greater reserves than the percentage of its estimated peak load responsibility which results from the aforesaid calculation, provided that, if the reserve requirements of Licensees are increased over the amount Licensees would be required to maintain without such interconnection, then the other party (ies) shall be required to carry or provide for as its (their) reserves the full amount in kilowatts of such increase.
(d) The parties to such a reserve sharing arrangement shall provide such amounts of ready reserve capacity as may be adequate to avoid the imposition of unreasonable demands on the other in meeting the normal contingencies of operating its system. However, in no circumstances shall the ready reserve requirement exceed the installed reserve requirement.
(e)
Interconnections will not be limited to low voltages when higher voltages are available from Licensees' installed facilities in the area where interconnection is desired, when the proposed arrangement is found to be technically and i
economically feasible.
Control and telemetering facilities shall be provided as required for safety and prudent operation of the interconnected systems.
(f)
Interconnection and coordination agreements shall not embody any restrictive provisions pertaining to intersystem coordination. Good industry practice as developed in the area from time to time (if non-restrictive) will satisfy this provision.
3.
Licensees will sell bulk power at their costs to or purchase bulk power from any other entity (ies) in the Western Mississippi Area engaging in or proposing to engage in generation of electric power when such transactions would serve to reduce the overall costs of new bulk power supply for l
themselves or for the other party (ies) to the transaction.
This refers specifically to the opportunity to coordinate in the planning of new generation, transmission and related facilities. This provision shall not be construed to require l
J13 MISC 86082702 - 4
f Licensees to purchase or sell bulk power if they find such purchase or sale infeasible or their costs in connection with such purchase or sale would exceed their benefit therefrom.
4.
(a) Licensees and any successor in title shall offer an opportunity to participate in the Grand Gulf Nuclear Units and any other nuclear generating unit (s) which they or either of them, may construct, own and operate in the State of Mississippi, severally or jointly, during the term of the instant license, or any extension or renewal thereof, to any entity (ies) in the Western Mississippi Area by either a reasonable ownership interest in such unit (s), or by a contractual right to purchase a reasonable portion of the output of such unit (s) at the cost thereof if the entity (ies) so elects.
In connection with such access, Licensees will also offer transmission service as may be required for delivery of such power to such entity (ies) on a basis that will fully compensate Licensees for their cost.
(b)
In the event that during the term of the instant license, or any extension or renewal thereof, Licensees obtain participation in the ownership of or rights to a portion of the output of one or more nuclear generating units constructed, owned and operated by any affiliate or subsidiary of the Middle South Utilities System other than Licensees, or by any successor in title to the Grand Gulf Nuclear Units, Licensees shall exert their best efforts to obtain participation in such nuclear unit (s) by any entity (ies) in the Western Mississippi Area requesting such participation on terms no less favorable than the terms of Licensees' participation therein.
5.
(a) Licensees shall facilitate the exchange of bulk power by transmission over its transmission facilities between or among two or more entities in the Western Mississippi Area with which it is interconnected; and between any such entity (fes) and any entity (fes) engaging in bulk power supply outside the l
Western Mississippi Area between whose facilities Licensees' i
transmission lines and other transmission lines would form a l
continuous electrical path, provided that (1) permission to utilize such other transmission lines has been obtained, and (2) the arrangements reasonably can be accommodated from a functional and technical standpoint. Such transmission shall be on terms that fully compensate Licensees for their cost.
Any entity (fes) requesting such transmission arrangements shall give reasonable advance notice of its (their) schedule and requirements.
(The foregoing applies to any entity (ies) to which Licensees may be interconnected in the future as well as those to which they are now interconnected.)
l i
i J13 MISC 86082702 - 5
- (b) Licensees shall include in their planning and construction program sufficient transmission capacity as of this paragraph, provided that any entity (ies) paragraph (a) required for the transactions referred to in sub in the Western Mississippi Area give Licensees sufficient advance notice as may be necessary to accommodate its (their) requirements from a functional and technical standpoint and that such entity (ies) fully compensates Licensees for their cost. Licensees shall not be required to construct transmission facilities which will be of no demonstrable present or future benefit to Licensees.
6.
Licensees will sell power for resale to any entity (ies) in the Western Mississippi Area now engaging in or proposing to engage in retail distribution of electric power.
7.
The foregoing conditions shall be implemented in a manner consistent with the provisions of the Federal Power Act and the Mississippi Public Utilities Act of 1956 and all rates, charges or practices in connection therewith are to be subject to the approval of regulatory agencies having jurisdiction over them.
E.
This facility is subject to the following conditions for the protection of the environment:
1.
The applicants shall implement the Environmental Protection Program Respecting Construction of Grand Gulf Nuclear Station, Units 1 & 2, as set out in Staff Exhibit 2-A in the evidentiary hearing conducted by the Atomic Safety and Licensing Board in this proceeding, except that (1) the requirement in paragraph 12 of Section 1 of Part Two and in Table 1 for monitoring and documenting stage and correlating stage with surface water quality measurements and (ii) the requirement in paragraph 11 of section 1 of Pt.rt Two for monitoring and capacity requirements for sediment retention basins need not be implemented henceforth.
2.
Before engaging in a construction activity which may result in a significant adverse environmental impact that was not evaluated or that is significantly greater than that evaluated in the Final Environmental Statement, the applicants shall provide written notification to the Director of Licensing; 3.
If unexpected harmful effects or evidence of irreversible damage are detected during facility construction, the applicants shall provide an acceptable analysis of the problem and a plan of action to eliminate or significantly reduce the harmful effects or damage.
J13 MISC 86082702 - 6
f l l
4.
This permit is subject to the limitation that a license authorizing operation of the facility will not be issued by the Commission unless (a) the applicants submit to the Commission the complete final safety analysis report, portions of which may be submitted and evaluated from time to time; (b) the Commission finds that the final design provides reasonable assurance that the health and safety of the public will not be endangered by the operation of the facility in accordance with procedures approved by it in connection with the issuance of said license; (c) the Commission finds that operation of the facility will be in accordance with 10 CFR Part 51 of the Commission's regulations and all ap licable requirements of I
said Part 51 were satisfied; and (d the applicants submit proof of financial protection and the execution of an indemnity agreement as required by Section 140 of the Act.
I 5.
This permit is effective as of its date of issuance and shall expire on the latest completion date indicated in paragraph 3.A above.
FOR THE ATOMIC ENERGY COMMISSION A. Giambusso, Deputy Director l
for Reactor Projects Directorate of Licensing Date of Issuance: SEP 4, 1974 I
J13 MISC 86082702 - 7
- _ _ _ _ _ _ __