ML20206F497

Forwards Safety Evaluation Re 880710 Application for Amend to Permit Sys Energy Resources,Inc to Assume Responsibility for Operation of Plant.Potential long-term Benefits Can Result from Proposed Consolidation

ML20206F497
Person / Time
Site:	Arkansas Nuclear
Issue date:	11/15/1988
From:	Crutchfield D Office of Nuclear Reactor Regulation
To:	Tison Campbell ALABAMA POWER CO.
Shared Package
ML20206F501	List: ML20206F497 ML20206F502
References
NUDOCS 8811210172
Download: ML20206F497 (5)

Text

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UNITED STATES

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NUCLEAR REGULATORY COMMISSION r,

wAsmorow. o.c. nossa November 15, 1988 Docket Nos. 50-313 and 50-368 fir. T. Gene Campbell Vice President, Nuclear Operations Arkansas Power & Light Company Post Office Box 551 Little Rock, Arkansas 72203

SUBJECT:

SYSTEM ENERGY RESOURCES, INC. (SERI) OPERATION OF ARKANSAS NUCLEAR ONE, UNITS 1 AND 2 - PRELIMINARY SAFETY EVALUATION On July 1,1988, Arkansas Power & Light Comp ny (AP&L), the licensee for Arkansas Nuclear One, Units 1 and 2 (ANO-182, applied to the NRC to omend the operating license to permit System Energy Resources, Inc. (SERI) to assume responsibility for operation of AN0-182. The NRC staff has reviewed that application and has prepared the enclosed Preliminary Safety Evaluation (SE) concerr.ing the amendment. The NRC has not yet issued the license amendment.

Under the nuclear restructuring plan proposed in AP&L's license amendment application, SERI will specifically assume operating responsibility for all r

the nuclear units in the Middle South Utilities, Inc. (MSU) system. This includes, in addition to Arkansas Nuclear One, Units 1 and 2, the Waterford Steam Electric Station, Unit 3, owned by Louisiana Power & Light Company (LP&L) and the Grand Gulf Nuclear Station (GGHS) Unit 1.

Ownership Gf all units, sources of funding, and entitlements to output will not change under their amendment.

The NRC has identified and encouraged through its regulatory and licensing processes an emphasis on numerous aspects of nuclear power plant management.

These aspects include management involvement in key decision making; management oversight, evaluation, and action; standards for management qualification; and event assessment followed by effective information distribution both internal L

and external to the utility. Nuclear organization consolidations such as the ones proposed can greatly facilitate improved performance in each of these

areas, s

For example, a nuclear operating company devoted solely to nuclear operations is not required to address issues related to other non-nuclear generation, power distribution, or customer services. This narrow focus can allow the i

company to develop a consistent philosophy specifically designed to address i

and promote safe operation of the plants.

Further, where one company operates i

several nuclear units, ready communication and sharing of expertise and talent throughout the system of nuclear plants can be established.

It should also permit the development of expertise in areas where in-house expertise might not otherwise be developed if each of the companies continued to operate their separate facilities.

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fir. T. Gene Carpbell It is also icportant to recognize that, as discussed in the SE, the personnel and organizations presently operating ANO-l&2 will not be changed as a result of the proposed amendment. These ir.dividuals will be transferred to SERI, thus insuring the continuity and technical qualifications of the new operator.

In addition to reporting organizational changes associated with various plans and prograns governed by 10 CFR Part 50, SERI has also contnitted that, as it refines its consolidated organization, it will inform the NRC of, and obtain any necessary NRC approvals for, the first organizational changes involving centralization or consolidation of functions. The NPC is thus assured that as a result of its oversight of the consolidation process, no changes w,11 result in degradation of the organization or technical qualifications of tt e operating pe rsonr.e 1.

The proposed arendrnent and transfer of operations a:-d raintenance responsibili-ties to SERI also involves an operating agreenent between AP&L and SERI. The LRC recognizes the operating agreer.ent as a reans to assure SERI and APLL collet-tively naintain the requirenents of ond cooperatively conrunicate with the NPC.

As such, the UFC will normally cercunicate with SERI and SERI will te respon-sible for SERI activities and AP&L interface responses.

NPC contunications directly with AP&L will not require SERI coordinated efforts. This tratter was discussed with your staff and SERI.

In addition, we have determined that the proposed license atendrcent is subject to en antitrust review. The NRC will publish in the Federal Register receipt of the proposed acendeent and request concents on its conpetitivi hipact.

In the course of our review, the staff

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will consult with and seek the advice of the Attorney General.

In conclusion, the NRC agrees with the concept of consolidation of nuclear operating responsibilities for the PSU units into one nuclear operating cerpany.

Potential long-tern benefits can result from the proposed censolidation.

If any changes develop in your pl6ns for SERI cperation of Ah0-l&2 which might affect the findings in our Prelinir,ary Safety Evaluation, please let us Encw.

'lc expect to fitalize the Safety Evaluation and be prepared to issue the license antendnent before the end of the year.

Ucerely.

Original signed try Deanis M. Crut aht ta14 Dernis it. Crutchfield Acting Associate Directer for Projects Office of Nuc1 car Reactor regulation

Enclosure:

Safety Evaluation (Prelininary) cc w/ enclosure:

W. Cavanaugh, Ill, SEPl Jobp Casare. Jr., !ERI DISTRIEUTION

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t:FC POR Local PCR PC4 Peading L. Pubenstein J. Calvo P. Neonan D. Vigginton CGC-Rockville E. Jordan B. Grir es ACRS (10)

PC4 Plant file 3

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PD4/Ft! g (A). /.

hrb1 #

• See previous cencurrence:

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e ifr. T. Gene Carpbell It is also important to recognite that, as discussed in the SE, the personnci and organizations presently operating ANC-l&2 will not be changed as a result of the proposed arendirent. These individuals will be transferred to SERI, thus I

insuring the continuity and technical qualifications of the new operator.

In addition to reporting organizational changes associated with various plans and prograns governed by 10 CFR Part 50 SERI has also comitted that, as it refines its consolidated organization, it will inform the NFC of, and obtain any necessary i:EC approvals for, the first organizational changes involving centralization or consolidation of functions. The NRC is thus assured that as a result of its oversight of the consolidation process, no changes will result in degradation of the organization or technical qualifications of the operating personnel.

The proposed atendrent and transfer of operations and saintenance responsibili-ties to SERI also involves an operating agreercent between AP&L and SERI. The iRC recognizes the operating agreenent as a recans to assure SERI and AP&L collet-tively paintain the requirerents of and cooperatively coccunicate with the NRC.

/ss such, the i;PC will norirally ccrcunicate with SERI and SERI will be respon-sible for SERI activities and AP&L interface responses. ilRC coteunications directly with AP&L will not require SERI coordinateo efforts. This ratter was discussed with your staff and SERI.

In conclusion, the liEC approves of the concept of consolidation of nuclear operating responsibilities for the l'.SU units into one nuclear operating corpany.

Potential long-term benefits con result frem the proposed consolidation.

If any changes develop in your plans for SERI operation of Ah0-l&2 which might effect the findings in our Safety Evaluation, please let us know.

Sincerely, Dennis it. Crutchfield Acting Associate Directcr for Projects Office of i;uclear Reactor Fegulation

Enclosure:

Safety Evaluation (Preliminary) cc w/ enclosure:

W. Cavanaugh, III, SERI John G. Cesare, Jr., SERI DISTRIEUTICit Docket rT1F i;FC PDR Local POR F04 Rcading

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L. Fubenstein J. Calvo P. 1;ceran D.1:igginton CGC-Rockville E. Jcrdan B. Grires ACES (10)

PC4 Plant File PD4/

J04/ Fit (A)A0P CGC Pilcon.

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f Mr. T. Gene Campbell -

i It is also irportant to recognize that, as discussed in the SE, the personr.el i

and organizations presently operating ANO-182 will not be changed as a result l

of the proposed amendrent. These individuals will be transferred to SERI, thus insuring the continuity and technical qualificatiuns of the new operator. In addition to reporting organizational changes associated with various plans and

[

programs governed by 10 CFR Part 50, SERI has also connitted that, as it j

refines its consolidated organization, it will inform the NRC of, and obtain i

any necessary NRC approvals for, the first organizational changes involving j

centralization or consolidation of functions. The NRC is thus assured that as a result of its oversight of the consolidation process, no changes will result l

in degrsdation of the organization or technical qualifications of the operating personnel.

The proposed amendment and transfer of operations and raintenance responsibili-ties to SERI also involves an operating agreement between AP&L and SERI. The NRC recognizes the operating agreenent as a reans to assure SERI and AP&L collec-tively n.aintain the requirenents of and cooperatively concunicate with the NRC.

As such, the NRC will norra11y cecrunicate with SERI and SERI will be respon-t sible for SERI activities and AP&L interface responses. NRC connunications directly with AP&L will not require SERI coordinated efforts. This matter was discussed with your staff and SERI.

In addition, we have detern.ined that the prcposed license atendnent is subject to an antitrust review. The NRC will e

publish in the Federa_1 Register receipt of the proposed amendrent and request 3

concents on its conpetitive in: pact.

In the course of our review, the staff i

will consult with and st.ek the advice of the Attorney General.

In conclusion, the NRC agrees with the concept of consolidation of nuclear operating retponsibilities for the MSU units into one nuclear operating ccrpany.

Potential 1 cog-tern benefits can result from the proposed consolidation.

If any changes develop in your plans for SERI operation of ANO-1&E which niight l

affect the findings in our Preliminary Safety Evaluation, please let us know.

We espect to finalize the Safety Evaluation and be prepared to issue the license atendeent befcre the end of the year, j

Sincerely,

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enn s

. CrutchTTelq ~ ~ '

ActingAssociateDirptor i

for Projects Office of Nuclear Reactor Rpgulation

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Enclosure:

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Safety Evaluation (Prelininary) i

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cc w/ enclosure:

i K. Cavanaugh, III, SERI John G. Cesare, Jr., SERI l

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't I.,.

I Mr. T. Gene Carnpbell Arkansas Nuclear One Arkansas Power & Light Corpany Unit Nos. I and 2

' CC:

Mr. Dan R. Howard, Manager Mr. Charles B, Brinkman, Manager Licensing Washington Nut. lear Operations i

Arkansas Nuclear One C-E Power Systa.s f

P. O. Box 608 7910 Woodmont Avenue Russellville, Arkansas 72801 Suite 1310 Bethesda, Maryland 20814

[

Mr. James M. Levine Executive Director t

SiteNuclearOperations Honorable William Abernathy Arkansas Nuclear One County Judge of Pope County l

P. O. Fox 608 Pope County Courthouse Russellville, Arkansas 72801 Russellville - Arkansas 72801 Nicholas S. Reynolds. Esq.

Bishop. Cook, Purcell A Reynolds i

1400 L Street N.W.

Washington, D.C.

20005-3502 Regicnal Administrator, Region IV U.S. ?!uclear Regulatory Corsnissien Office of Executive Director for Operations (11 Ryan Plaza Drive. Suite 1000 Arlington, Texas 76011 i

Senior Resident Inspector U.S. Nuclear Regulatory Constission 1 Nuclear Plant Road Russellville, Arkansas 72801 Ms. Grete Dicus, Director I

Divisich of Environt.,r,tal Health I

Frotection i

Arkansas Departrent of Fealth 4815 West Markam Street Little Rock, Arkansas 72201 I

Mr. Robert D. Borsum Babcock & Wilcox Nuclear Power Generation Civision f

Suite 220 i

1700 Rockville Pike, Suite 525 l

Rockville Maryland 20852 l

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