ML20214W979

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Forwards Draft License NPF-71.License Conditions & Exemptions Subj to Finalization of Environ Assessment & Ser. Comments Requested by 870619
ML20214W979
Person / Time
Site: South Texas STP Nuclear Operating Company icon.png
Issue date: 06/11/1987
From: Calvo J
Office of Nuclear Reactor Regulation
To: Partlow J, Rossi C, Shao L
Office of Nuclear Reactor Regulation
References
NUDOCS 8706160279
Download: ML20214W979 (48)


Text

{{#Wiki_filter:_-_ _ _ _ _ _ _ _ _ _ _ _ _ - - _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ June 11, 1987 Docket No. 50-498 MEMORANDUM FOR: Charles E. Rossi, Director Division of Operational Events Assessment Lawrence Shao, Director Division of Engineering and Systems Technology James G. Partlow, Director Division of Reactor Inspection and Safeguards Frank J. Congel, Director Division of Radiation Protection and Emergency Preparedness Jack W. Roe, Director Division of Licensee Performance and Quality Evaluation FROM: Jose A. Calvo, Director Project Directorate - IV Division of Reactor Projects - III, IV, V and Special Projects

SUBJECT:

REVIEW 0F DRAFT LICENSE FOR LOW POWER OPERATION ON SOUTH TEXAS PROJECT UNIT 1 Enclosed is the subject draft license which is being transmitted for your review and comment. This draft copy does not contain the Technical Specifi-cations, the Environmental Protection Plan and the Indemnity Agreements. The license conditions and exemptions have been identified subject to finali-zation of the Environmental Assessment and the Safety Evaluation Report. Attachment 1 shows items which are currently being addressed; resolution on most of them is expected at the time of issuance. Please provide your comments by June 19, 1987 so that the staff can be ready to issue the license in the last week of June if the applicant completes con-struction on schedule. Odginalsi l p*id Jose A. Calvo, Director 8706160279 870611 Project Directorate - IV PDR ADOCK 05000498 Division of Reactor Projects - III, IV A PDR . V and Special Projects i CONTACT: N. P. Kadambi, NRR/PD-IV 49-29407 DISTRIBUTION Dochetfile NRC PDR Local PDR PD4 Reading DCrutchfield NPKadambi RPerch PNoopan ( PD4 - MlU PD  % PD4 NPKadambi:as PNoonan JAcalvo{[g 6/ \\ /87 6/0/87 6/;\ /87 p

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                                                         !!OUSTON LIGHTING AND POWER COMPANY l

CITY PUBLIC SERVICE BOARD OF SAN ANTONIO ' CENTRAL POWER AND LIGHT COMPANY CITY OF' AUSTIN, TEXAS ' DOCKET NO.'50-498 SOUTH TEXAS PROJECT, UNIT 1 FACILITY OPERATING LICENSE License No. NPF-71' i

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1. The Nuclear Regulatory Comission (the Comission or the NRC) has found that:-

. A. The application for a license filed by Houston Lighting and Power

                           . Company * (HL&P) acting on behalf of itself and as agent for the City Public Service Board of San Antonio (CPS), Central Power and Light Company (CPL), and City of Austin, Texas (COA) (licensees)                                                                                                             -

complies with the standards and requirements of the Atomic Energy.

                            - Act of-1954, as amended (the Act), and the comission's regulations set forth in 10 CFR Chapter I, and all required notifications to F

! other agencies or bodies have been duly made; I B. Construction of the South Texas Project, Unit 1, (the facility) has been substantially completed in conformity with Construction Permit No. CPPR-128 and the application, as amended, the provisions of the Act, and the regulations of the Comission; . C. The facility will operate in conformity with the application, as amended, the provisions of the Act, and the regulations of the Com-mission, (except as exempted from compliance in Section 2.0. below); D. There is reasonable assurance: (i) that the activities authorized by this operating license can be conducted without endangering the health and safety of the public, and (ii) that such activities will be conducted in compliance with the Comission's regulations set forth in 10 CFR Chapter I (except as exempted from compliance in Section 2.D. below);

                Houston Lighting and Power Company is authorized to act as agent for the City Public Service Board of San Antonio, Central Power and Light Company and City of. Austin, Texas and has exclusive responsibility-and control over the                                                                                                                    t physical construction, operation and maintenance of the facility.

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I, - 2-E. Houston Lighting and Power Company is technically qualified to engage

in the' activities authorized by this license in accordance with the Commission's regulations set forth in 10 CFR Chapter I; F. The licensees have satisfied the applicable provisions of 10 CFR

,- Part 140, " Financial Protection Requirements and Indemnity Agreements," of the Commission's regulations; G. The issuance of this license will not be inimical to the common

                                            . defense and security or to the health and safety of the public; i                                      H. After weighing the environmental, economic, technical and other benefits of the facility against environmental and other costs and

, considering available alternatives, the issuance of this Facility Operating License No. NPF-71, is subject to the conditions for pro-tection of the environment set forth in the Environmental Protec-tion Plan attached as Appendix B, is in accordance with 10 CFR r ' Part 51 of the Commission's regulations and all applicable require-i ments have been satisfied; and I. The receipt, possession, and use of source, byproduct and special nuclear material as authorized by this license will be in accord-ance with the Commission's regulations in 10 CFR Parts 30, 40 and ' 70.

2. Based on the foregoing. findings and the Partial Initial Decision (Opera-ting License) (Phases II/III), dated June 13, 1986 and the Partial Initial e Decision (Authorizing Operating Licenses), dated August 29, 1986 by the Atomic and Safety Licensing Board regarding this facility, Facility i_

Operating License No. NFP-71, is hereby issued to Houston Lighting and Power Company, City Public Service Board of San- Antonio, Central Power and Light. Company, and City of Austin, Texas (the licensees) to read as - follows: A.. This license applies to the South Texas Project, Unit 1, a pres-surized water reactor, and associated equipment (the facility) owned by Housi.on Lighting and Power Company, City Public Service Board of San Antonio, Central Power and Light Company and City of Austin, Texas. The facility is located in Matagorda County, Texas, west of the Colorado River, 8 miles north-northwest of the town of Matagorda and about 89 miles southwest of Houston and is described in the licensees' Final Safety Analysis Report, as supplemented and amended, and in the licensee's Environmental Report, as supplemented and amended; I b .

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B. Subjecttotheconditionsandrequirementsincorporatedherein,the Commission hereby licenses: . (1)_ Houston Lighting and Power Corpany (HL&P) pursuant to , Section 103 of the Act and 10 CFR Part 50, to possess, use/ ' and operate the facility at the designated location in

                                                     .Matagorda County, Texas, in accordance with the procedures                                                  1 and limitations. set forth in this license-
,                                        (2) Pursuant:to                           the Act and 10 CFR Part 50, the City Public Service Board of San Antonio (CPS), Central Power and Light Company (CPL),

and the City of Austin, Texas (COA), to possess the facility at the designated location in Matagorda. County, Texas, in accordance with the procedures and limitations set forth in this license;

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(3) -and HL&P,' pursuant to the Act and 10 CFR Part 70, to receive, possess use at any time special nuclear material as reactor fuel,

                                                       .in:accordance with the limitations for storage and ainounts required for reactor operation, as described in the Final-Safety' Analysis Report, as supplemented and amended;.

(4) HL&P, pursuant to the Act and 10 CFR Parts 30, 40'and 70, to receive, possess, and use at any time any byproduct, source ' and special nuclear material as sealed neutron sources for reactor startup, sealed sources for reactor instrumentation ' and; radiation monitoring equipment calibration, and as fission detectors in amounts as required; (5) HL&P, pursuant to the Act and 10 CFR Parts 30, 40 and 70, to l receive, possess, and use in amounts as' required any byproduct, L source or special nuclear material without restriction to chemi-cal gr physical form, for sample analysis or instrument calibra- . tionfor associated with radioactive apparatus or components; and to ? (6). HL&P, pursuant to the Act and 10 CFR Parts 30, 40 and 70, lear possess, but not separate,ysuch byproduct and special nuc E materials as may be produced by the operation of the' facility ' L authorized'herein. ' ' C. This license shall be deemed to contain and is subject to the con-ditions specified in the Commission's regulations set forth in 10 CFR Chapter I and is subject to all appitcable provisions of the Act and to the rules, regulations and orders of the Commission now or here-after in effect; and is subject to the additional conditions speci-fled or incorporated below: s b [ 4 p M 8

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         -                                                   3 (1) Maximum Power Level-HL&P is authorized-to operate the' facility at-reactor core power levels not in excess of 3800 megawatts the mal (100% power) in accordance with the conditions specified herein' and in Attach-ment 1 to this license. The items: identified in Attachment 1 to this license shall be completed as specified. Attachment 1 e

is hereby incorporated into this license. Pending Commission approval, this license is: restricted to reactor core power levels not to exceed 5 percent of full power (190 megawatts thermal); (2) Technical Specifications and Environmental Protection Plan The.Technica1' Specifications contained in Appendix A and the Environmental Protection Plan contained in Appendix B, both of which are' attached hereto, and hereby incorporated into this license. HL&P shall operate the facility in accordance with the Technical Specifications and.the Envircnmental Protection Plan. ~

                       .(3) Antitrust Conditions Houston Lighting and Power Company, City Public Service Board of San Antonio, Central Power and Light Company and City of Austin, Texas shall comply with the antitrust conditions delineated in i
                               . Appendix C to this license; fippendix C is hereby incorporated
                               .into this license.

(4) Fire Protection (Section 9.5.1, SER, SSER Nos. 2, 3 and 4)*

                               ~ HL&P shall implement and maintain in effect all provisions of the approved fire protection program as ' described in the Final             -

Safety Analysis Report, and the Fire Protection of Safe o Shutdown Capability report for the facility, and submittals as approved in the SER (NUREG-0781) dated April 1986 and its

                                 Supplements, subject to the following provision:

The licensee may make changes to the apprcved fire protection program without prior approval of the Consission, only if those l changes would not adversely affect the ability to achieve and I maintain safe shutdown in the event of a fire.

              "The parenthetical notation following the title of many license conditions denotes the section of the Safety Evaluation Report and/cr its supplements wherein the license condition is discussed.

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                              '(5) Physical Security (Section 13.6, SSER No. 3)
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HL&P shall; fully implement and maintain in effect'all provisions of the physical security, guard training and qualification, and safeguards contingency plans previously approved by the Commission - and all amendments and revisions to such plans r.ade pursuant to the authority of 10 CFR 50.90 and 10 CFR 10.54(p). The plans, which contain Safeguards Information protected under .10 CFR 73.71, are entitled: " South-Texas Project Electric Generating Station Physical Security Plan," with revisions submitted through March 20,1987; " South Texas Project Electric Generating Station Security Personnel Qualification and Training Plan," with revisions submitted through March 20, 1987; and " South Texas Project Electric Generating Station Safeguards Contingency Plan," with revisions submitted through March 29, 1985. (6) SPDS License Conditions (Section 18. . SSER No. 4 HL&P shall accomplish the following prior to startup from the first refueling outage.: (a) Modify the critical safety function displays a) to provide the status of the radioactivity control safety function and b) to continuously display the status boxes that summarize plant safety status. (b) Establish formal mechanisms for controlling system update rates. (c) Investigate and correct excessive display generation times - those greater than 10 seconds. (d) Develop a program and implement procedures for controlling - SPDS software and data base changes. (e) Document the process used to verify that the SPDS system requirements are complete and that this process of veriff-cation is independent of the design process. (7) Supplementary Containment Purge Isolation (Section 11.5 SSER No. 4) HL&P shall provide, prior to startup from the first refueling outage, control room indication of the normal and supplemental containment purge sample line isolation valve position. (8) Main Cooling Reservoir (Section 2.5.7, SSER No. 2) HL&P shall complete remedial work on the reservoir embankment before the water level is increased substantially over 35 ft. ms1.

j . 3 a D. Exemptions. l The following. exemptions are authorized by law and will not endanger life. or. property or the common defense and secarity, and certain special circumstances are present. With the granting of these exemptions, the facility will operate, to the extent authorized herein, in conformity , with.the application, as amended, the provisions of the Act, and the rules and regulations of the Commission. t I 1 i: (1) The facility requires a schedular exemption from the requirements of general Design Criterion 4, Appendix A to 10 CFR 50. The staff has described in detail in Supplement 4 to the Safety Evaluation Report the technical basis associated with this exemption. The staff's-L environmental assessment was published on . Therefore, pursuant to 10 CFR 50.12(a)(1),10 CFR 50.12(a)(2)(iii) and (iv), The South Texas Project Unit 1, is exempt from the require-ments of General Design Criterion (GDC) 4, Appendix A to 10 CFR 50 ' with respect to. the dynamic loading effects associated with the

  1. postulated pipe breaks described in detail in Section 3.6.3 ofloading These dynamic
                                                        -Supplement 4 to the Safety Evaluation Report.

effects include pipe whip, jet impingement, and break-associated dynamic transients. Specifically, this eliminates the need to install jet impingement barriers and pipe whip restraints associated - with postulated pipe breaks in the pressurizer surge line, and the accumulator injection lines. This exemption will expire 6 months following completion of the current GDC-4 rulemaking changes or at the end of the second refueling outage, whichever occurs earlier. (2) The facility requires a technical exemption from the requirements of 10 CFR 50, Appendix J, Section III.D.2(b)(ii). The justification of this exemption is contained in Section 6.2.6 of Supplement 3 to the Safety Evaluation Report.- The staff's environmental assessment was

Therefore, pursuant to 10 CFR published on . -

50.12(a)(1),10 CFR 50.12(a)(2)(li) and (iii), The South Texas Project Unit 1 is exempt from the quoted requirement and instead, is required to perform the overall air lock leak test at pressure P prior to-establishing containment integrity if air lock maintena$ce has been performed that could affect the air lock sealing capability. (3) The facility requires a schedular exemption from the requirements of General Design Criterion 57, Appendix A to 10 CFR 50. The staff has described in detail in Supplement 4 to the Safety Evaluation Report the technical bases associated with this exemption. The staff's Therefore, environmental assessment was published on . pursuant to 10 CFR 50.12(a)(2)(v) the South Texas Project Unit 1 is exempt from the requirements of GDC-57 applicable to the essential component cooling water (CCW) piping which is also used by the non-essential chilled water system in providng cooling to the Reactor i containment Fan Coolers (RCFC). This exemption will expire at the end of the first refueling outage. e

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l (4) The facility was previously granted exemption from the criticality monitoring requirements of 10 CFR 70.24 (See Materials License No. SNM-1972 dated December 29, 1986 and Section 9.1.2 of SSER-3). The South Texas Project Unit 1 is hereby exempted from the criticality monitoring provisions of 10 CFR 70.24 as applied to fuel assemblies held under this license. E. Except as otherwise provided in the Technical Specifications or Environmental Protection Plan, the licensee shall report any vio-lations of the requirements contained in Section 2.C. of this. license in the following manner: initia1' notification shall be made within twenty-four (24) hours to the NRC Operations Center via the Emergency Notification System with written follow-up within 30 days in accord-ance with the procedures described in 10 CFR 50.73(b), (c), and (e). 4 F. The licensees-shall have and maintain financial protection of such type and in such amounts as the Commission shall require in accordance with Section 170 of the Atomic Energy Act of 1954, as amended, to cover public liability claims. G. This licensee is effective as of the date of issuance and shall expire at midnight on , 2027. FOR THE NUCLEAR REGULATORY COMMISSION Thomas E. Murley, Director Office of Nuclear Reactor Regulation

Enclosures:

1. Attachment 1
2. Appendix A - Technical Specifications (NUREG-1255)
3. Appendix B, Environmental Protection Plan
4. Appendix C, Antritrust Conditions Date of Issuance:

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   .s                                                ATTACHMENT 1 TO OPERATING LICENSE NO. NPF-71 1

Prior to criticality:

1. Justify to the staff's satisfaction the deviation from TMI Action Plan requirement II.E.4.2 as applied to .the Component Cooling Water lines which provide cooling to the Reactor Coolant Pumps, Reactcr Coolant Drain Tank Heat Exchanger, and Excess Letdown Heat Exchanger.

< 2. . Incorporate into the FSAR .the commitments on design nodifications, and inspections to confirm adequacy thereof, related to the wear of Bottom-Mounted Instrumentation thimbles.

3. -Complete all actions to the staff's satisfaction on the' items related to

> the Seismic Qualifications Review Team audit documented in Section 3.10.1 of SWR Supplement No. 3.

4. Document compliance with 10 CFR 50.49.
5. Demonstrate-adequacy of design with respect to attachment of safety-related components to non-safety-related frames.
6. Justify deviations from Regulatory Guide 8.27.
7. Justify deviations from Regulatory Guide 1.68 with respect to the .

Loss-of-Offsite-Power Test. Prior- to Full Power Operation: l 1. Address to the staff's satisfaction the items resulting from the SPDS audit conducted by the staff during January 27-30, 1987 and documented in the meeting summary of March 12, 1987. The preoperational tests and testing exceptions identified in the attachment to - the May 26, 1987 letter from J. H. Goldberg to the USNRC Document Control Desk ~ shall be completed in accordance with the scheduled commitments contained in

 ,                       that attachment.

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CONFORMED ' 3- - December 1980 4 c LICENSE CONDITIONS FOR SOUTH TEXAS PROJECT UNITS NOS 1 AND 2 7 3

                                     -I.             A. The following definitions apply to paragraph I'.'B:

(1) "PowerApplicants" means severally and jointly Houston Lighting and Company (HLP),. Central Power and. Light Company (CPL), City Public Service Board of San Antonio (CPSB),.and the City ~ of Austin' Electric Utility Department (COA) and any of their respective successors, assignees, or subsidiaries engaged in-the generation, transmission or the distribution of electric power. Where a license condition is directed to a specific Applicant, that Applicant is ' identified. (2) "cant's South Texas Area" means (a) those counties in which Appli-serve electric customers at wholesale or retail, and-(b) those other areas, if any, surrounded by the areas in (a) above. (3) " Entity" means= an electric utility which is a person, a l private or public corporation, a governmental agency or authority, a municipality, a cooperative, or an association of any of the foregoing owning, operating, or contractually controlling, or proposing in good-faith to own, operate, or contractually control facilities for generation, transmission or distribution of electric power and energy for the purpose of providing electric utility service. (4) " Bulk Power" means the electric power and/or electric energy 1 supplied or made available at transmission or subtransmission voltages. ' i (5) " Costs" means all appropriate operating and maintenance expenses and all ownership costs where applicable. (6) The terms " connection" and " interconnection" are used inter-changeably. B. The Applicants defined in Paragraph I. A.(1) are subject to the i following antritrust conditions: (1) (a) CPL shall afford to the Public Utilities Board of the City of Brownsville an opportunity to participate in the South Texas Projects, Units 1 and 2, on reasonable terms and conditions and in accordance with the South Texas Project Participation Agreement and on a basis that will l fully compensate CPL for its actual costs, provided that Appendix C - South Texas y , w-e co,,,-ave-,,,,v.,,,,--w-,,~--e,,,,,,e ,r,c--,- ,-,wn-,, ,--n,--,-,.e-emwn--- m,,,.-,,,,,-.n--:m--,,--m.n-----,venaw-,--,r,--,.,---n

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2-Brownsville must enter _into a firs commitment ~ to acquire the ownership interest made available to it by the terms-of this paragraph no later than ~Ja uary 1,1983. The ownership interest which CPL shall make available sto e ' Brownsville shall be computed by cultiplying CPL's -

Generation Entitlement Share in STP Units 1 and 2 by the ratio of Brownsville's peak demand for 1980 to CPL's peak demand for 1980. In the event Brownsville. obtains an ownership interest from any Applicant other than CPL, the ownership interest which CPL sast make available to Brownsville hereunder shall be reduced by one megawatt

" for each megawatt in excess of 12 megawatts that Browns-ville acquires from other Applicants. Applicants shall not exercise any rights of first refusal over Brownsville's efforts to participate in the South Texas Project to the

                                                                - extent of the first 50 MW of such ownership share.-
(b) CPL shall afford Brownsville reasonable transmission services to enable it to obtain delivery of power from the STP,'provided that CPL is fully compensated for its costs of such transmission services plus a reasonable return on investment, and provided further that in the event transmission capacity is not available to provide such transmission services, the provisions of Paragraph I.B.(4) hereof define the extent of'the obligation which CPL has with respect to'the construction of additional transmission facilities necessary to provide such trans-mission service.

(c) CPL will also afford all reasonable coordination services (including but not limited to reserve-sharing, backup ' power, maintenance power and emergency power) necessary for Brownsville to have effective access to power from - STP obtained from CPL, provided that CPL is fully cca-pensated for its costs of providing such coordination services plus a reasonable return on investment. [ (d) Each Applicant shall facilitate where necessary Browns-ville's obtaining the participation interests and services i specified in paragraphs 1(a),1(b), and 1(c) above. p (2) The Applicants, as long as they are members of the Texas Interconnected Systems (TIS) or any other organization which considers the planning for or operations of ERCOT-TIS elec-tric utilities, shall support reasonable requests by Entities l 4 in the South Texas Area having generation capacity for member-ship in TIS or such other organizations. The Applicants shall also propose and actively support, as long as they are i members thereof, the creation of one or more additional 4 Appendix C - South Texas l

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N 40 . classification of TIS membership, based on non-discriminatory criteria to afford access to data, studies and recommendations

                                                     - to all Entities in the South . Texas Area who desire membership.

The Applicants shall share information with other Entities with respect to, and shall conduct with other such Entities i through any electric utility planning organizations of which -' the Applicants are members, joint studies and planning of

future generation, transmission and related facilities;
                                                     .provided, however, that this condition shall not obligate the Applicants to conduct such joint studies or joint planning-unless (1) the studies or planning are requested and carried out in good faith and based on reasonably realistic and-reasonably complete data or projections, (2) the studies or planning are reasonably justified on the basis of sound engineering principles, (3) appropriate protection is accorded proprietary or other confidential business and financial information, and (4) the costs of such studies or planning are allocated on a fair and equitable basis.

(3) Each Applicant shall participate in and facilitate the exchange of bulk power by transmission over its own transmission facilities between or among two or more Entities in the South t E Texas Area with which the Applicant is connected; and between any such Entity (ies) and any Entity (ies) outside the South Texas-Area between whose facilities the Applicant's trans-

'                                                       mission lines and other transmission lines, including direct current (asynchronous) transmission lines, form a continuous l=

electrical path; provided, that (i) permission to utilize I such other transmission lines has been requested by the pro-ponent of the arrangement, (ii) the arrangements reasonably l < can be accommodated from a functional and technical stand-l point, and (iii) any Entity (ies) requesting such transmission arrangements shall have 'given reasonable advance notice of .

                                                       -its (their) schedule and requirements. Such transmission shall be on terms that fully compensate an Applicant for its costs including a reasonable return on investment; provided, however, that such transmission services and the rates to be charged therefor shall be subject to the jurisdiction of the appropriate regulatory agency (ies). Where the rates to be charged are subject to the jurisdiction of an appropriate regulatory authority, the Applicants shall not refuse to provide such transmission services merely because the rate (s) to be charged therefor are the subject of dispute with such Entity (ies). An Applicant shall not be required to enter into any arrangement which would unreasonably impair system reliability or emergency transmission capacity, it being recognized that while some transmission may be operated fully loaded other transmission may be for emergency use and operated either unloaded or partially loaded.

Appendix C - South Texas 6

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                                                        '(4) -Each Applicant shall include in its planning and construction programs sufficient transmission capacity as required for the transactions referred to in paragraph I.B.(3) (and I.B.(5)

- for CPL), provided any Entity (ies) in the South Texas Area-gives an Applicant sufficient advance notice as may be neces- , sary to accomodate its (their) requirements from a functional and technical standpoint and that such Entity (ies) fully. compensates an Applicant for its costs including a. reasonable i return on investment.1/ An Applicant shall not be_ required

                                                               -to construct transmission facilities if construction of_ such facilities is infeasible, or if such would unreasonably l

impair system reliability or emergency transactions capacity. l

                                                               ~In connection with the performance of the obligations above, an Applicant shall not be foreclosed from requiring a reason-l able contribution in aid of construction or from_ making arrangements for coordinated construction of future trans-mission lines such that each of the parties to the trans-action would own an interest in or a segment of the trans-mission addition in proportion to its share of the cost of the addition. Any such contribution made in aid of construc-tion or ownership interest shall also be properly credited in

! determining any wheeling charges. If.an Applicant engages in joint ownership of transmission lines with any other Entity (ies),

.it shall not refuse to engage in similar transactions in
comparable circumstances with other Entities, subject to the provisions limiting an Applicant's obligations above.

f (5) CPL shall, upon reasonable advance notice, enter into arrange- ' ments for the sale of full and partial requirements bulk power pursuant to a filed tariff to any requesting Entity having a non-aggregated generating capacity of 200 megawatts or less under reasonable terms-and conditions which shall include a provision for CPL to recover its costs of providing . such service plus a reasonable return on investment. Such tariff shall not require CPL to enter into any arrangement for such sale (s) if (a) it does not have available sufficient bulk power or adequate transmission to provide the requested service; or (b) the sale would impair CPL's ability to render adequate

                                                                 .and reliable service to its own customers or its ability to l                                                                                                                      It is expressly recognized, and discharge prior commitments.

such tariff may reflect, that the determination whether suffi-cient bulk power or adequate transmission is available to accom-modate a request for full or partial requirements bulk power will consider and recognize that (1) CPL will be engaging in

                              -1/         Nothing in this paragraph shall require CPSB or C0A to undertake any action (s) which may be contrary to any state constitutional provision.

Appendix C - South Texas

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4 Jh. centralized economic dispatch with its affiliates in accord-ance with, and pursuant to the requirements of, the Public Utility Holding Company Act of 1935, (2) pursuant to such-

                                 - requirements CPL may first utilize its generating and trans-mission capacity to accomplish such cer,tralized economic dispatch before its generating and trar.smission capacity is made available for full or partial requirements bulk power sales under the tariff, and (3) if other CSW system capacity becomes available by reason of CPL's padicipation in such centralized economic dispatch, then such other CSW system capacity will, at the option of CSW, be made available in lieu of CPL's obligation to provide such capacity. Any.

curtailment of CPL s full or partial requirements ~ sales shall be on a reasonable and non-discriminatory (where possible) basis.. (6) (a) In connection with the performance of its obligations herein and subject to the provisions of this paragraph, HLP shall not disconnect from or refuse to connect its then-existing or proposed facilities with the facilities of any Entity used or proposed to be used for the trans-mission of electric energy in interstate commerce by reason of the interstate character of such facilities, and HLP will not prevent any Entity with which it main-tains connections from establishing, maintaining, modi-fying or utilizing a connection with facilities used or proposed to be used for the transsission of electric energy in interstate commerce by reason of the inter-state character of such facilities, provided that, anything in these license conditicas to the contrary - notwithstanding (but subject to stbparagraph 6(b) and 6(d) below) any Entity seeking ~to establish, maintain, i modify or utilize any connection which could affect the - nonjurisdictional status of HLP under the Federal Power ( Act shall have filed an application with and used its L best efforts to obtain an order from the FERC, applicable ( to HLP under Section 210, 211 and 212 of such Act, requiring tne establishment, maintenance, modification or utilization of such connection. In the event that an Entity files an application pursuant to this subparagraph, HPL agrees that it will not unreasonably oppose any such application. In the event such application is denied by a valid order of the FERC, any continuing refusal by HLP to estabish, maintain, modify or utilize such connection with such Entity shall be subject to review by the NRC in accordance with the Atomic Energy Act of 1954, as amended, and the rules and regulations thereunder, to determine whether any such refusal would create or maintain a situation inconsistent with the antitrust I Appendix C - South Texas

w . laws or the policies thereunder in accordance with the standards set forth in Section 105 of such Act; provided i that all factual determinations by the FERC on any cost or system reliability reason (s) for any such refusal shall-not be~ subject to redetermination by the NRC. The burden of proof will be on the HLP in such NRC proceeding. r (b) HLP shall not enter into or maintain any agreement or understanding with any other Entity (ies) or Applicant to refuse to deal with another Entity (ies) or-Applicant (s) with the purpose of maintaining a non-jurisdictional status under-the Federal Power Act, and in the event

                                                                                            ' that HPL refuses to make an interconnection with or
                                                                                            - chooses to disconnect from any Entity (ies), such decision and/or action by HLP will be undertaken unilaterally, i

not jointly,-and without consultation with any other ' Entity (ies), provided, however, that after HLP decides to undertake such action, it may notify any affected Entity of its decision. (c) In the event that an Entity files an application pursuant ' to subparagraph (a) of this paragraph solely by reason of HLP's desire to maintain its non-jurisdictional status under the Federal Power Act, HLP agrees to pay such Entity's reasonable expenses in connection with such application'and the ensuring proceeding, 2/ provided, however, that HLP shall not be required to pay for any expenses of such Entity of that Entity's application is denied by FERC for reasons advocated by HLP at FERC, and ' provided further, that HLP shall not be required to pay for any costs or expenses of such Entity which that Entity would have incurred had it not failed an applica-tion solely by reason of HLP's desire to maintain its , I~ non-jurisdictional status under the Federal Power Act. (d) Nothing in these License Conditions shall impair the

i. right of the Department of Justice or any other Entity, public or private, to file an antitrust action in any Federal Court in the event any Applicant refuses to establish, maintain, modify or utilize any connection with any Entity (ies), provided that nothing herein shall-preclude any Applicant from raising any legal or equitable defense that may be available to it.

2/ This obligation shall not apply to the expenses of Central and South West Corporation or Texas Utilities Company or any of their respective sub-sidiaries, including but not limited to the expenses of CSW and any of its subsidiaries incurred in FERC Docket No. EL79-8. ! Appendix C - South Texas

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L4 7-(7) HLP agrees to use its best efforts to amend any_ agreements with all Entities to ensure that such agreements are not inconsistent with paragraphs (6)(a) and (6)(b) hereof. (8) If Applicants' participate in any future nuclear-units other than those which are now under construction or-for which an application forLa construction permit has been filed,-they will afford similar participation to Entities in the South Texas Area on a reasonable basis. r (9)- Applicants agree that the reliability of power delivered -into ' TIS-ERCOT over DC asynchronous connections shall not be

                                                  ' treated differently by the Applicants, for purposes of spinning                                                            '

and installed reserve calculations and requirements, than would be the case if such power originated with TIS-ERCOT. Outages on DC asynchronous connections shall be treated by the Applicants in the same way as losses of generation within TIS-ERCOT. Applicants agree to support the' adoption of principles involving DC asynchronous connections contained in this paragraph within any TIS or ERCOST organization. (10) HLP and CPL shall use their best efforts to modify the Offer of Settlement filed in FERC Docket No. EL79-8 to include 4

'                                                   each of the undertakings set forth in the letter agreement

' among HLP, Central and South West Corporation, Texas Utilities Company and the FERC staff, dated September 11, 1980. HLP and CPL shall thereafter use their best efforts to secure approval thereof by the FERC, and shall abide by any valid order (s) of the FERC issued purusant to the Offer of Settle-ment. Nothing herein shall preclude the Department of Justice from instituting or intervening in any proceeding at FERC, including Docket No. EL79-8, and from presenting such argu-l ments and evidence that it deems appropriate. i l (11) The foregoing conditions shall be implemented (1) in a manner l consistent with applicable Federal, state and local statutes j: and regulations, and (2) subject to any regulatory agency i having jurisdiction. Nothing herein shall preclude the Applicants from seeking an exemption or other relief to which l they may be entitled under applicable law or shall be construed j as a waiver of their right to contest the applicability of

the license conditions with respect to any factual situation.

l Appendix C - South Texas ' 1 -

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r June 11,1987

  • Docket No. 50-498 MEMORANDUM FOR: Charles E. Rossi, Director Division of Operational Events Assessment Lawrence Shao, Director
                               -Division of Engineering and Systems Technology James G. Partlow, Director Division of Reactor Inspection and Safeguards Frank J. Congel, Director Division of Radiation Protection and Emergency Preparedness Jack W. Roe, Director Division of Licensee Performance and Quality Evaluation FROM:              Jose A. Calvo, Director Project Directorate - IV Division of Reactor Projects - III, IV, V and Special Projects

SUBJECT:

REVIEW OF DRAFT LICENSE FOR LOW POWER OPERATION ON SOUTH TEXAS PROJECT UNIT 1 Enclosed is the subject draft license which is being transmitted for your review and comment. This draft copy does not contain the Technical Specifi-cations, the Environmental Protection Plan and the Indemnity Agreements. The license conditions and exemptions have been identified subject to finali-zation of the Environmental Assessment and the Safety Evaluation Report. Attachment 1 shows items which are currently being addressed; resolution on most of them is expected at the time of issuance.

                                                                                             ~

Please provide your comments by June 19, 1987 so that the staff can be ready to issue the license in the last week of June if the applicant completes con-struction on schedule. Odgtnet signedd b M4

                                                                        -    c~

Jose A. Calvo, Director Project Directorate - IV Division of Reactor Projects - III, IV V and Special Projects CONTACT: N. P. Kadambi, NRR/PD-IV 49-29407 DISTRIBUTION Docket File NRC PDR

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                                ,.                                                          NUCLEAR REGULATORY COMMISSION UNITED STATES '

WASHINGTON. D. C. 20056 y -{ ,.

        \e...*                                                                                           HOUSTON LIGHTING AND POWER COMPANY CITY PUBLIC SERVICE BOARD OF SAN ANTONIO CENTRAL POWER AND LIGHT COMPANY CITY OF AUSTIN, TEXAS DOCKET NO. 50-498 SOUTH TEXAS PROJECT, UNIT 1
                                                                                                                                                                                                                            ~

FACILITY OPERATING LICENSE License No. NPF-71 ,

1. The Nuclear Regulatory Comission (the Comission or the NRC) has found that:

A. The application for a license filed by Houston Lighting and Power Company * (HL&P) acting on behalf of itself and as agent for the City Public Service Board of San Antonio (CPS), Central Power and Light Company (CPL), and City of Austin, Texas (C0A) (licensees) complies with the standards and requirements of the Atomic Energy Act of 1954, as amended (the Act), and the Comission's regulations set forth in 10 CFR Chapter I, and all required notifications to other agencies or bodies have been duly made; B. Construction of the South Texas Project, Unit 1, (the facility) has been substantially completed in conformity with Construction Permit No. CPPR-128 and the application, as amended, the provisions of the Act, and the regulations of the Commission; , C. The facility will operate in conformity with the application, as amended, the provisions of the Act, and the regulations of the Com-mission, (except as exempted from compliance in Section 2.0. below); D. There is reasonable assurance: (1) that the activities authorized by this operating license can be conducted without endangering the health and safety of the public, and (ii) that such activities will be conducted in compliance with the Comission's regulations set forth in 10 CFR Chapter I (except as exempted from compliance in Section 2.D. below);

                           Houston Lighting and Power Company is authorized to act as agent for the City Public Service Board of San Antonio, Central Power and Light Company and City of Austin, Texas and has exclusive responsibility and control over the physical-construction, operation and maintenance of the facility.
              .               _ ._                       __                   ~ . -     . . _   _                     .. .
   .:                                                                               '                                   E. Houston Lighting and Power. Company is technically qualified to engage in the activities authorized by this license in accordance with the Commission's regulations set forth in 10 CFR Chapter I;
.                                F. The licensees have satisfied the applicable provisions of 10 CFR Part 140, " Financial Protection Requirements and Indemnity Agreements," of the Commission's regulations; G. The issuance of this license will not be inimical to the common defense and security or to the health and safety of the public; H. After weighing the environmental, economic, technical and other benefits of the facility against environmental and other costs and considering available alternatives, the issuance of this Facility Operating License No. NPF-71, is subject to the conditions for pro-tection of the environment set forth in the Environmental Protec-tion Plan attached as Appendix B is in accordance with 10 CFR Part 51 of the Commission's regulations and all applicable require-ments have been satisfied; and I. The receipt, possession, and use of source, byproduct and special nuclear material as authorized by this license will be in accord-ance with the Commission's regulations in 10 CFR Parts 30, 40 and 70.
2. Based on the foregoing findings and the Partial Initial Decision (Opera-
;                                  ting License) (Phases II/III), dated June 13, 1986 and the Partial Initial j'                                  Decision (Authorizing Operating Licenses), dated August 29, 1986 by the Atomic and Safety Licensing Board regarding this facility, Facility l-                                  Operating License No. NFP-71, is hereby issued to Houston Lighting and Power Company, City Public Service Board of San Antonio,. Central Power and Light Company, and City of Austin, Texas (the licensees) to read as
follows

A. This license applies to the South Texas Project, Unit 1, a pres-surized water reactor, and associated equipment (the facility) owned by Houston Lighting and Power Company, City Public Service Board of San Antonio, Central Power and Light Company and City of Austin, t ' Texas. The facility is located in Matagorda County, Texas, west of r the Colorado River, 8 miles north-northwest of the town of Matagorda l and about 89 miles southwest of Houston and is described in the I licensees' Final Safety Analysis Report, as supplemented and amended, and in the licensee's Environmental Report, as supplemented and  ; i amended; l t i

     . . . . . .           - .        --      .-     -       ..      .= . =-      -         . -   .

1 i? i- B. : Subject to the conditions and requirements incorporated herein, the I Commission hereby licenses:

(1) Houston Lighting and Power Company (HL&P) pursuant to '

Section 103 of the Act and 10 CFR Part 50, to possess, use > and. operate the' facility at the designated location in ' Matagorda. County, Texas, in accordance with the procedures and limitations set forth in this license; [ ' (2) Pursuant to the Act-and 10 CFR Part 50, the City Public Service Board of San Antonio (CPS), Central Power and Light Company (CPL), ' and the City of Austin, Texas (COA), to possess the facility at the designated location in Matagorda County, Texas, in accordance with the procedures and linlitations set forth in this license; (3) _HL&P, pursuant to the Act and 10 CFR Part 70, to receive, possess and use at any time special nuclear material as reactor fuel,

in accordance with the limitations for storage and amounts required for reactor opera _ tion, as described in the Final
  • Safety Analysis Report, as supplemented and amended;
                       -(4) HL&P, pursuant to the Act and 10 CFR Parts 30, 40 and 70, to receive, possess, and use at any time any byproduct, source
'                               and special nuclear material as sealed neutron sources for reactor startup, sealed sources for reactor instrumentation andl radiation monitoring equipment calibration, and as fission detectors in amounts as required;

! (5) HL&P, pursuant to the Act and 10 CFR Parts 30, 40 and 70, to receive, possess, and use in amounts as required any byproduct, source or special nuclear material without restriction to chemi-i i cal or physical form, for sample analysis or instrument calibra-l tion or associated with radioactive apparatus or components; and . l i: (6) HL&P, pursuant to the Act and 10 CFR Parts 30, 40 and 70, to possess, but not separate, such byproduct and special nuclear l materials as may be produced by the operation of the facility j-authorized herein. C. This license shall be deemed to contain and is subject to the con-ditions specified in the Commission's regulations set forth in 10 CFR Chapter I and is subject to all applicable provisions of the Act and l to the rules, regulations and orders of the Commission now or here-after in effect; and is subject to the additional conditions speci- - fled or incorporated below: i i-(

                                                           ,.                           a

c (1) Maximum Power Level HL&P is authorized to operate the facility at reactor core power levels not in excess of 3800 megawatts the7ial (100% power) in accordance with the conditions specified herein and in Attach-ment I to this license. The items identified in Attachment 1 to this license shall be. completed as specified. Attachment 1 is hereby incorporated into this license. Pending Commission approval, this. license is. restricted to reactor core power

                                                       ' levels not to exceed 5 percent of full power (190 megawatts thermal);

(2) Technical Specifications and Environmental Protection Plan The Technical Specifications contained in Appendix-A and the Environmental Protection Plan contained in Appendix B, both of which are attached hereto, and hereby incegorated into this license'. HL&P shall operate the facility in accordance with-the Technical Specifications and the Environmental Protection Plan. (3) Antitrust Conditions Houston Lighting and Power Company, City Public Service Board of San Antonio,. Central Power and-Light Company and City of Austin, Texas shall comply with the antitrust conditions delineated in Appendix C to this license; Appendix C is hereby -incorporated into this license. (4) Fire Protection (Section 9.5.1, SER, SSER Nos. 2, 3 and 4)* HL&P shall implement and maintain in effect all provisions of the approved fire protection program as described in the Final ~ i Safety Analysis Report, and the Fire Protection of Safe l' Shutdown Capability report for the facility, and submittals as l approved in the SER (NUREG-0781) dated April 1986 and its Supplements, subject to the following provision: l' The licensee may make changes to the apprcved fire protection program without prior approval of the Commission, only if those changes would not adversely affect the ability to achieve and maintain safe shutdown in the event of a fire.

                          "The parenthetical notation following the title of many license conditions denotes the section of the Safety Evaluation Report andAr its supplements wherein the license condition is discussed.
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a; (5) Physical Security (Section 13.6 SSER No. 3) HL&P shall fully implement and maintain in effect all provisions of the physical security, guard training and qualification.cand safeguards contingency plans previously approved by the Commission and all amendments and revisions to such plans made pursuant to ' the authority of 10 CFR 50.90 and 10 CFR 10.54(p). . The plans, ' which contain Safeguards Information protected under 10 CFR 73.71, are entitled: " South Texas Project Electric Generating

  1. Station Physical Security Plan," with revisions submitted through March 20, 1987; " South Texas Project Electric Generating Station Security Personnel Qualification and Training Plan,"

with revisions submitted through March 20, 1987; and " South Texas Project Electric Generating Station Safeguards Contingency Plan," with revisions submitted through March 29, 1985. [ (6) SPDS License Conditions (Section 18. . SSER No. 4 j HL&P shall accomplish the following prior to startup from the ' first refueling outage.: (a) Modify the critical safety function displays a) to provide the status of the radioactivity control safety function and l-b) to continuously display the status boxes that summarize plant safety status. p (b) Establish formal mechanisms for controlling system update

                                                              -rates.

(c) Investigate and correct excessive display generation times - those greater than 10 seconds. (d) Develop a program and implement procedures for controlling . SPDS software and data base changes. (e) Document the process used to verify that the SPDS system requirements are complete and that this process of veriff-cation is independent of the design process. (7) Supplementary Containment Purae Isolation (Section 11.5 SSER No. 4) HL&P shall provide, prior to startup from the first refueling l outage, control room indication of the normal and supplemental l L containment purge sample line isolation valve position. j (8) Main Cooling Reservoir (Section 2.5.7 SSER No. 2) HL&P shall complete remedial work on the reservoir embankment i before the water level is increased substantially over 35 ft. ms1.

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D. Exemptions l The following exemptions are authorized by law and will not endanger life j or property or the common defense and security, and certain special circumstances are present. With the granting of these exemptions, the facility will operate, to the extent authorized herein, in conformity with the application, as amended, the provisions of the Act, and the rules and regulations of the Commission. (1) The facility requires a schedular exemption from the requirements The staff hasof general Design Criterion 4, Appendix A to 10 CFR 50. described in detail in Supplement 4 to the Safety Evaluation Report the technical basis associated with this exemption. The staff's environmental assessment was published on . Therefore, pursuant to 10 CFR 50.12(a)(1), 10 CFR 50.12(a)(2)(111) l and (iv), The South Texas Project Unit 1, is exempt from the require- ' ments of General Design Criterion (GDC) 4, Appendix A to 10 CFR 50 with respect to the dynamic loading effects associated with the postulated pipe breaks described in detail in Section 3.6.3 of Supplement 4 to the Safety Evaluation Report. These dynamic loading effects include pipe whip, jet impingement, and break-associated dynamic transients. Specifically, this eliminates the need to install jet impingement barriers and pipe whip restraints associated with postulated pipe breaks in the pressurizer surge line, and the accumulator injection lines. This exemption will expire 6 months following completion of the current GDC-4 rulemaking changes or at the end of the second refueling outage, whichever occurs earlier. (2) The facility requires a technical exemption from the requirements of 10 CFR 50, Appendix J, Section III.D.2(b)(ii). The justification of this exemption is contained in Section 6.2.6 of Supplement 3 to the

                                                 ' Safety Evaluation Report. The staff's environmental assessment was published on                    .

Therefore, pursuant to 10 CFR - 50.12(a)(1),10 CFR 50.12(a)(2)(ii) and (iii), The South Texas Project Unit 1 is exempt from the quoted requirement and instead, is required to perform the overall air lock leak test at pressure P i prior tc establishing containment integrity if air lock maintena$ce has been performed that could affect the air lock sealing capability. (3) The facility requires a schedular exemption from the requirements of l General Design Criterion 57, Appendix A to 10 CFR 50. The staff has j described in detail in Supplement 4 to the Safety Evaluation Report j the technical bases associated with this exemption. The staff's Therefore, environmental assessment was published on . ' pursuant to 10 CFR 50.12(a)(2)(v) the South Texas Project Unit 1 is exempt from the requirements of GDC-57 applicable to the essential component cooling water (CCW) piping which is also used by the i non-essential chilled water system in providng cooling to the Reactor Containment Fan Coolers (RCFC). This exemption will expire at the end of the first refueling outage. i a .

                                                     ..              .      .                .. ~    -        -       .
    *~

e !C) : .

                                                ~

(4) The facility was previously granted exemption from the criticality monitoring requirements of 10 CFR 70.24 (See Materials License No. SNM-1972 dated December 29,'1986 and Section 9.1.2 of SSER-3). The South Texas Project Unit 1 is hereby. exempted from the criticality monitoring provisions of 10 CFR 70.24 as applied to fuel assemblies held under this license. E. Except as otherwise provided in the Technical Specifications or Environmental Protection Plan..the licensee shall report any vio-lations of the requirements contained in Section 2.C. of this license in.the following manner: initia11 notification shall be made within twenty-four (24) hours to the NRC Operations Center via the Emergency Notification System with written follow-up within 30 days in accord- ' ance with the procedures described in 10 CFR 50.73(b), (c), and (e). F. The licensees shall have and maintain financial protection of such type and in such amounts as the Commission shall require in accordance

  • with Section 170 of the Atomic Energy Act of 1954, as amended, to cover public liability claims.

G. This licensee is effective as of the date of issuance and shall expire at midnight on , 2027. 1 ' FOR THE NUCLEAR REGULATORY COMMISSION 4 Thomas E. Murley, Director l

                                                                   ' Office of Nuclear Reactor Regulation

Enclosures:

1. Attachment 1 -
2. Appendix A - Technical Specifications (NUREG-1255) l
3. Appendix B, Environmental Protection Plan
4. Appendix C, Antritrust Conditions i

i Date of Issuance: \ l c i

t 7 4 ' ATTACHMENT 1 T0 OPERATING' LICENSE NO. NPF-71 Prior to criticality: 1.' Justify to the staff's satisfaction the-deviation from TMI Action Plan requirement II.E.4.2 as applied to the Component Cooling Water lines which provide cooling to the Reactor Coolant Pumps, Reactor Coolant Drain Tank Heat Exchanger, and Excess Letdown Heat Exchanger.

2. Incorporate into the FSAR the commitments on design modifications, and inspections to confirm adequacy thereof, related to the wear of Bottom-Mounted Instrumentation thimbles.
3. Complete all actions to the staff's satisfaction on the items related to t

the Seismic Qualifications Review Team audit documented in Section 3.10.1 . of SWR Supplement No. 3.

4. . Document compliance with 10 CFR 50.49.
5. Demonstrate adequacy of design with respect to attachment of safety-related components to non-safety-related frames.
6. Justify deviations from Regulatory Guide 8.27.
7. Justify deviations from Regulatory Guide 1.68 with respect to the Loss-of-Offsita-Power Test.

Prior to Full Power Operation: , 1. Address to the staff's satisfaction the items resulting from the SPDS j audit conducted by the staff during January 27-30, 1987 and documented in i the meeting summary of March 12, 1987, i The' preoperational tests and testing exceptions identified in the attachment to , the May 26, 1987 letter from J. H. Goldberg to the USNRC Document Control Desk j shall be completed in accordance with the scheduled commitments contained in that attachment. i a I 4 i e e 4

w . CONFORMED i December 1980 LICENSE: CONDITIONS FOR SOUTH TEXAS PROJECT-

                                                            -UNITS NOS. 1 AND 2

~

                                'The following definitions apply to paragraph I.B:

I. A. (1) " Applicants" means severally and jointly Houston Lighting and Power Company (HLP), Central Power and Light Company (CPL),

                                        . City Public Service Board of San Antonio (CPSB), and the City of Austin Electric Utility Department (C0A) and any of their_             ,

respective successors, assignees, or subsidiaries engaged in the generation, transmission or the distribution of. electric power. Where a license condition is directed to a' specific Applicant, that Applicant is identified. (2) " South Texas Area" means (a) those counties in which Appli-cant's serve electric customers at wholesale or retail, and (b) those other areas, if any, surrounded by the areas in (a) above. + l (3) " Entity" means an electric utility which is a person, a private or public corporation, a governmental agency or !~ authority, a municipality, a cooperative, or an association of any of the foregoing owning, operating, or contractually controlling, or proposing in good faith to own, ' operate, or contractually control facilities for generation, transmission or distribution of electric power and energy for the purpose i of providing electric utility service. 4 (4) " Bulk Power" means the electric power and/or electric energy l l' supplied or made available at transmission or subtransmission l voltages. (5) " Costs" means all appropriate operating and maintenance

expenses and all ownership costs where applicable.

[ l (6) The terms " connection" and " interconnection" are used inter-i changeably. B. The Applicants defined in Paragraph I.A.(1) are subject to the , following antritrust conditions: , (1) (a) CPL shall afford to the Public Utilities Board of the City of Brownsville an opportunity to participate in the South Texas Projects, Units 1 and 2, on reasonable terms e l and conditions and in accordance with the South Texas Project Participation Agreement and on a basis that will fully compensate CPL for its actual costs, provided that 4 l Appendix C - South Texas f l . .

  --.a.-_.---

i

  .l 2-Brownsville must enter into a firm commitment to acquire the ownership interest made availatie to it by the terms of this paragraph no later than Ja uary 1,1983. The ownership interest which CPL shall make available to Brownsville shall be computed by r;1tiplying CPL's Generation Entitlement Share in STP Units 1 and 2 by the ratio of Brownsville's peak demand for 1980 to CPL's peak demand for 1980. In the event Brownsville obtains an ownership interest from any Applicant other than CPL, the ownership interest which CPL sast make available to Brownsville hereunder shall be redaced by one megawatt for each megawatt in excess of 12 segawatts that Browns-ville acquires from other Applicants. Applicants shall not exercise any rights of first refusal over Brownsville's efforts to participate in the South Texas Project to the extent of the first 50 MW of such ownership share.

(b) CPL shall afford services to enable Brownsville reasonable it to obtain delivery transmission of power from the STP, provided that CPL is fully compensated for its costs of such transmission services plus a reasonable return on investment, and provided further that in the event transmission capacity is not available to provide such transmission services, the provisions of Paragraph I.B.(4) hereof define the extent of the obligation which CPL has with respect to the construction of additional' transmission facilities necessary to provide such trans- , mission service. (c) CPL will also afford all reasonable coordination services (including but not limited to reserve sharing, backup

                       -                              power, maintenance power and emergency power) necessary for Brownsville to have effective access to power fron
  • STP obtained from CPL, provided that CPL is fully com-j pensated for its costs of providing such coordination i

services plus a reasonable return on investment. (d) Each Applicant shall facilitate where necessary Browns-ville's obtaining the participation interests and services

i. specified in paragraphs 1(a),1(b), and 1(c) above.

l < (2) The Applicants, as long as they are members of the Texas Interconnected Systems (TIS) or any other organization which considers the planning for or operations of ERCOT-TIS elec-tric utilities, shall support reasonable requests by Entities in the South Texas Area having generation capacity for member-l l ship in TIS or such other organizations. The Applicants shall also propose and actively support, as long as they are l members thereof, the creation of one or more additional j i Appendix C - South Texas l i i - ..

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classification of TIS membership, based on non-discriminatory criteria to afford access to data, studies and recommendations to all Entities in the South Texas Area who desire membership. The Applicants shall share information with other Entities with respect to,'and shall conduct with other such Entities through any electric utility planning organizations of which the' Applicants are members, joint studies and planning of future generation, transmission and related facilities; provided, however, that this condition shall not obligate the Applicantstoconductsuchjointstudiesorjointplanning unless (1) the studies or planning are requested and carried out in good faith and based on reasonably realistic and reasonably complete data or projections, (2) the studies or planning are reasonably justified on the basis of sound t. engineering principles, (3) appropriate protection is accorded proprietary or other confidential business and financial information, and (4) the costs of such studies or i i planning are allocated on a fair and equitable basis, (3) Each Applicant shall participate in and facilitate the exchange of bulk power by transmission over its own transmission facilities between or among two or.more Entities in the South Texas Area with which the Applicant is connected; and between  : any such Entity (fes) and any Entity (ies) outside the South , Texas Area between whose facilities the Applicant's trans-mission lines and other transmission lines, including direct current (asynchronous) transmission lines, form a continuous electrical path; provided, that (1) permission to utilize such other transmission lines has been requested by the pro-ponent of the arrangement, (ii) the arrangements reasonably can be accommodated from a functional and technical stand- ' point, and (iii) any Entity (ies) requesting such transmission arrangements shall have given reasonable advance notice of I ! its (their) schedule and requirements. Such transmission [ shall be on terms that fully compensate an Applicant for its

costs including a reasonable return on investment; provided, however, that such transmission services and the rates to be l

charged therefor shall be subject to the jurisdiction of the appropriate regulatory agency (ies). Where the rates to be charged are subject to the jurisdiction of an appropriate  ; regulatory authority, the Applicants shall not refuse to l provide such transmission services merely because the rate (s) i to be charged therefor are the subject of dispute with such Entity (tes). An Applicant shall not be required to enter 7 I into any' arrangement which would unreasonably impair system reliability or emergency transmission capacity, it being [ recognized that while some transmission may be operated fully loaded other transmission may be for emergency use and operated either unloaded or partially loaded. Appendix C - South Texas

m (4) 'Each Applicant shall include in its planning and construction programs sufficient transmission capacity as required for the transactions referred to in paragraph I.B.(3) (and I.B.(5) for CPL), provided any Entity (ies) in the South Texas Area gives an Applicant sufficient advance notice as may be neces-sary to accomodate its (their) requirements from a functional and technical standpoint and that such Entity (tes) fully compensates an Applicant for its costs including a reasonable return on investment.1/ An Applicant shall not be required to construct transmission facilities if construction of such facilities is infeasible, or if such would unreasonably impair system reliability or emergency transactions capacity. In connection with the performance of the obligations above, an Applicant shall not be foreclosed from requiring a reason-able contribution in aid of construction or from making arrangements for coordinated construction of future trans-mission lines such that each of the parties to the trans-action would own an interest in or a segment of the trans-mission addition in proportion to its share of the cost of the addition. Any such contribution made in aid of construc-tion or ownership interest shall also be properly credited in determining any wheeling charges. If an Applicant engages in joint ownership of transmission lines with any other Entity (ies), it shall not refuse to engage in similar transactions in comparable circumstances with other Entities, subject to the provisions limiting an Applicant's obligations above. (5) CPL shall, upon reasonable advance notice, enter into arrange-ments for the sale of full and partial requirements bulk power pursuant to a filed tariff to any requesting Entity having a non-aggregated generating capacity of 200 megawatts or less under reasonable terms and conditions which shall include a provision for CPL to recover its costs of providing . such service plus a reasonable return on investment. Such tariff shall not require C?L to enter into any arrangement for such sale (s) if (a) it does not have available sufficient bulk power or adequate transmission to provide the requested service; or (b) the sale would impair CPL's ability to render adequate and reliable service to its own customers or its ability to discharge prior commitments. It is expressly recognized, and such tariff may reflect, that the determination whether suffi-cient bulk power or adequate transmission is available to accom-modate a request for full or partial requirements bulk power will consider and recognize that (1) CPL will be engaging in y Nothing in this paragraph shall require CPSB or C0A to undertake any action (s) which may be contrary to any state constitutional provision. Appendix C - South Texas

centralized economic dispatch with its affiliates in accord-ance with, and pursuant to the requirements of, the Public Utility Holding Company Act of 1935, (2) pursuant to such requirements CPL may first utilize its generating and trans-mission capacity to accomplish such centralized economic dispatch before its generating and trar.smission capacity is made available for full or partial requirements bulk power sales under the tariff, and (3) if other CSW system capacity becomes available by reason of CPL's pa-ticipatic, in such centralized economic dispatch, then such other CSd system capacity will, at the option of CSW, be made available in lieu of CPL's obligation to provide such capacity. Any curtailment of CPL s full or partial requirements sales shall be on a reasonable and non-discriminatory (where possible) basis. (6) (a) In connection with the performance of its obligations herein and subject to the provisions of this paragraph, HLP shall not disconnect from or refuse to connect its then-existing or proposed facilities with the facilities of any Entity used or proposed to be used for the trans-mission of electric energy in interstate commerce by reason of the interstate character of such facilities, and HLP will not prevent any Entity with which it main-tains connections from establishing, maintaining, modi-fying or utilizing a connection with facilities used or proposed to be used for the transmission of electric energy in interstate commerce by reason of the inter-state character of such facilities, provided that, anything in these license conditicas to the contrary notwithstanding (but subject to stbparagraph 6(b) and 6(d) below) any Entity seeking to establish, maintain, modify or utilize any connection which could affect the . nonjurisdictional status of HLP under the Federal Power Act shall have filed an application with and used its best efforts to obtain an order from the FERC, applicable to HLP under Section 210, 211 and 212 of such Act, requiring the establishment, maintenance, modification or utilization of such connection. In the event that an Entity files an application pursuant to this subparagraph, HPL agrees that it will not unreasonably oppose any such application. In the event such application is denied by a valid order of the FERC, any continuing refusal by HLP to estabish, maintain, modify or utilize such connection with such Entity shall be subject to review by the NRC in accordance with the Atomic Energy Act of 1954, as amended, and the rules and regulations thereunder, to determine whether any such refusal woult' create or maintain e-situation inconsistent with the antitrust Appendix C - South Texas

6-laws or the' policies thereunder in accordance with the standards set forth in Section 105 of such Act; provided that all factual determinations by the FERC on any cost or system reliability reason (s) for any such refusal shall not be subject to redetermination by the NRC. The burden of proof will be on the HLP in such NRC proceeding. (b) HLP shall not enter into or maintain any agreement or understanding with any other Entity (ies) or Applicant to refuse to deal with another Entity (ies) or Applicant (s) with the purpose of maintaining a non-jurisdictional status under the Federal Power Act, and in the event-that HPL refuses to make an interconnection with or chooses to disconnect from any Entity (ies), such decision and/or action by HLP will be undertaken unilaterally, not jointly, and without consultation with any other Entity (ies), provided, however, that after HLP decides to undertake such action, it may notify any affected Entity of its decision. (c) In the event that an Entity files an application pursuant to subparagraph (a) of this paragraph solely by reason of HLP's desire to maintain its non-jurisdictional status under the Federal Power Act, HLP agrees to pay such Entity's reasonable expenses in connection with such 4 application and the ensuring proceeding, 2/ provided,. however, that HLP shall not be required to pay for any i expenses of such Entity of that Entity's application is [ denied by FERC for reasons advocated by HLP at FERC, and ' provided further, that HLP shall not be required to pay for any costs or expenses of such Entity which that Entity would have incurred had it not failed an applica- - tion solely by reason of HLP's desire to maintain its i ' non-jurisdictional status under the Federal Power Act. (d) Nothing in these License Conditions shall impair the right of the Department of Justice or any other Entity, public or private, to file an antitrust action in any I Federal Court in the event any Applicant refuses to establish, maintain, modify or utilize any connection l with any Entity (ies), provided that nothing herein shall i preclude any Applicant from raising any legal or equitable defense that may be available to it. I 2/ This obligation shall not apply to the expenses of Central and South West Corporation or Texas Utilities Company or any of their respective sub-i sidiaries, including but not limited to the expenses of CSW and any of i its subsidiaries incurred in FERC Docket No. EL79-8. i l l Appendix C - South Texas [ t

                                                                                                                                                                                   ~

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n j e 7- l./

  • efe y, (7)" HLP agrees to use its best efforts to amend any: agreements
                                           ^
                                                    ' with all Entities to ensure that such agreements aronot'~
  • inconsistent with paragraphs (6)(a) and (6)(b) hereof. / <

(8) If Applicar.ts participate in any future w;1 ear units other than those which are now under construction or for which an . 'f application for a'canstruction permit hasiteen filed, they V' ' [ ' ,

                                           /            will afford similar participation to Entities in the South Texas Ares'on a reasonable basis.

3 (9) ' App 1! canth, a; gree that the reliability of power delivered? into , TIS-ERCOT over DC asynchronous connections shall not be treated differently by the Applicants, for purposes of spinning i ' ' and installed reserve calculations and requirements, than

                                                               ~

would be the case if such power. originated with TIS-ERCOT. 4 ,

                                                     /OutagesonDC.asynchronousconnectionsshallbetreatedby                                                     i
  • the Applicants in the same way as losses of generation within'

[ TIS-ERCOT. Applicants agree to support the adoption o.f .

                                         !                principles involving DC asynchronous connections contain(d         6 in this paragraph within any TIS or ERCOST organization.

(10) HLP and CPL shall use their best efforts to modify the O fer of+ Settlement filetf in FERC Docket No. EL79-8,to include each of the undertakings set forth in the letter'ag(eement_ . among HLP, Central and South West Corporation, Ten s utilities Company and the FERC staff, dated September 11;3980. 'HLP and CPL shall thereafter use their best efferts to decure approval thereof by ,the FERC, and shall abide by thy valid order (s) of the FERC issued purusant to the Offer of Settle-ment. Nothing herein shall preclude the Department of Justice

                                                         .from instituting or intervening in.any proceeding at FERC, including Docket No. EL79-8, and from presenting such argu-ments and evidence that it deems appropriate.

(11) The-foregoing conditions shall b's implemented (1) in a manner consistent with applicable Federal, strte and local statutes and regulations, and (2) subject to any regulatory agency l having jurisdiction. Nothing herein shall preclude the or other relief to, which Applicants from seeking an exemptior'e law or shall be construed they may be entitled under applicab1 as a waiver of their right to conte %t the applicability of i the license conditions with respect to aay factual situations l i I1 Appendix C - South Texas , , i/ i / ) <

     --~-- . . ~ . . . - . . . . ,                                ,_      _ , _ . , , _ ,
 .g h-June 11, 1987 0

Docket No. 50-498 i MEMORANDUM FOR: Charles E. Rossi, Director Division of Operational Events Assessment Lawrence Shao, Director Division of Engineering and Systems Technology James G. Partlow, Director Division of Reactor Inspection and Safeguards Frank J. Congel, Director Division of Radiation Protection and Emergency Preparedness Jack W. Roe, Director Division of Licensee Performance and Quclity Evaluation FROM: Jose A. Calvo, Director Project Directorate - IV Division of Reactor Projects - III, IV, V and Special Projects

SUBJECT:

REVIEW OF DRAFT LICENSE FOR LOW POWER OPERATION ON SOUTH TEXAS PROJECT UNIT 1 Enclosed is the subject draft license which is being transmitted for your review and comment. This draft copy does not contain the Technical Specifi-cations, the Environmental Protection Plan and the Indemnity Agreements. The license conditions and exemptions have been identified subject to finali-zation of the Environmental Assessment and the Safety Evaluation Report. Attachment I shows items which are currently being addressed; resolution on most of them.is expected at the time of issuance.

                                                                                                                                            ~

Please provide your comments by June 19, 1987 so that the staff can be ready

to issue the license in the last week of June if the applicant completes con-l struction on schedule.

l OriginalsigmEdN , Jose A. Calvo, Direc r LL ) Project Directorate - IV Division of Reactor Projects - III, IV V and Special Projects CONTACT: l N. P. Kadambi, NRR/PD-IV i 49-29407 l DISTRIBUTION Docket File NAC PORs Local PDR PD4 Reading DCrutchfield NPKadambi

        -RPerch PD4 MlY--

PNoopan PD % PD4 f kN l NPKadambi:as PNoonan JACalvo g i 6/g)/87 6 / 11 / 8 7 6/gg/87 g

p# UNITED STATES

   !    ,      o                NUCLEAR REGULATORY COMMISSION WASHINGTON, D. C. 20666
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HOUSTON LIGHTING AND POWER COMPANY CITY PUBLIC SERVICE BOARD OF SAN ANTONIO CENTRAL POWER AND LIGHT COMPANY CITY OF AUSTIN, TEXAS DOCKET NO. 50-498 SOUTH TEXAS PROJECT, UNIT 1 FACILITY OPERATING LICENSE License No. NPF-71

1. The Nuclear Regulatory Commission (the Commission or the NRC) has found that:

A. The application for a license filed by Houston Lighting and Power Company * (HL&P) acting on behalf of itself and as agent for the City Public Service Board of San Antonio (CPS), Central Power and Light Company (CPL), and City of Austin, Texas (C0A) (licensees) complies with the standards and requirements of the Atomic Energy Act of 1954, as amended (the Act), and the Commission's regulations set forth in 10 CFR Chapter I, and all required notifications to other agencies or bodies have been duly made;

8. Construction of the South Texas Project, Unit 1, (the facility) has been substantially completed in conformity with Construction Permit No. CPPR-128 and the application, as amended, the provisions of the Act, and the regulations of the Commission; ,

C. The facility will operate in conformity with the application, as amcnded, the provisions of the Act, and the regulations of the Com-mission, (except as exempted from compliance in Section 2.0. below); D. There is reasonable assurance: (i) that the activities authorized by this operating license can be conducted without endangering the health and safety of the public, and (ii) that such activities will be conducted in compliance with the Commission's regulations set forth in 10 CFR Chapter I (except as exempted from compliance in p Section 2.D. below);

           " Houston Lighting and Power Company is cuthorized to act as agent for the City Public Service Board of San Antonio, Central Power and Light Company and City i

of Austin, Texas and has exclusive responsibility and control over the physical construction, operation and maintenance of the facility. l I l -

t . E. Houston Lighting and Power Company is technically qualified to engage in the activities authorized by this license in accordance with the - Commission's regulations set forth in 10 CFR Chapter I; F. The licensees have satisfied the applicable provisions of 10 CFR Part 140, " Financial Protection Requirements and Indemnity Agreements," of the Commission's regulations; G. The issuance of this license will not be inimical to the common defense and security or to the health and safety of the public; H. After weighing the environmental, economic, technical and other benefits of the facility against environmental and other costs and considering available alternatives, the issuance of this Facility Operating License No. NPF-71, is subject to the conditions for pro-tection of the environment set forth in the Environmental Protec-tion Plan attached as Appendix B, is in accordance with 10 CFR Part 51 of the Commission's regulations and all applicable require-ments have been satisfied; and I. The receipt, possession, and use of source, byproduct and special nuclear material as authorized by this license will be in accord-ance with the C9mmission's regulations in 10 CFR Parts 30, 40 and 70.

2. Bcsed on the foregoing findings and the Partial Initial Decision (Opera-ting License) (Phases II/III), dated June 13, 1986 and the Partial Initial Decision (Authorizing Operating Licenses), dated August 29, 1986 by the Atomic and Safety Licensing Board regarding this facility, Facility Operating License No. NFP-71, is hereby issued to Houston Lighting and
             . Power Company, City Public Service Board of San Antonio, Central Power and Light Company, and City of Austin, Texas (the licensees) to read as follows:                                                                                     .

A.- This license applies to the South Texas Project, Unit 1, a pres-surized water reactor, and associated equipment (the facility) owned by Houston Lighting and Power Company, City Public Service Board of San Antonio, Central Power and Light Company and City of Austin, Texas. The facility is located in Matagorda County, Texas, west of the Colorado River, 8 miles north-northwest of the town of Matagorda and about 89 miles southwest of Houston and is described in the licensees' Final Safety Analysis Report, as supplemented and amended, and in the licensee's Environmental Report, as supplemented and amended; c - -

                         -    - - - .           -- --     e--       e..   , , -. m     v---   --- - - -   -v-- -

qn t B. Subject to the conditions and requirements incorporated herein, the Commission hereby licenses:

            -(1) Houston Lighting ar.d Power Company (HL&P) pursuant to Section 103 of the Act and 10 CFR Part 50, to possess, use and operate the facility at the designated location in Matagorda County, Texas, in accordance with the procedures and limitations set forth in this license; (2) Pursuant      to the Act and 10 CFR Part 50, the City Public Service Board of San Antonio (CPS), Central Power and Light Company (CPL),

and the City of Austin, Texas (COA), to possess the facility at the designated location in Matagorda County, Texas, in accordance with the procedures and limitations set forth in this license; (3) HL&P, pursuant to the Act and 10 CFR Part 70, to receive, possess and use at any time special nuclear material as reactor fuel, in accordance with the limitations for storage and amounts required for reactor operation, as described in the Final Safety Analysis Report, as supplemented and amended; (4) HL&P, pursuant to the Act and 10 CFR Parts 30, 40 and 70, to receive, possess, n d use at any time any byproduct, source and special nuclear material as sealed neutron sources for reactor startup, sealed sources for reactor instrumentation and radiation monitoring equipment calibration, and as fission detectors in amounts as required; (5) HL&P, pursuant to the Act and 10 CFR Parts 30, 40 and 70, to receive, possess, and use in amounts as required any byproduct, source or special nuclear material without restriction to chemi-cal or physical form, for sample analysis or instrument calibra-tion or associated with radioactive apparatus or components; and . (6). HL&P, pursuant to the Act and 10 CFR Parts 30, 40 and 70, to possess, but not separate, such byproduct and special nuclear materials as may be produced by the operation of the facility authorized herein. C. This license shall be deemed to contain and is subject to the con-ditions specified in the Commission's regulations set forth in 10 CFR Chapter I and is subject to all applicable provisions of the Act and to the rules, regulations and orders of the Commission now or here-after in effect; and is subject to the additional conditions speci-fied or incorporated below:

1 (1) Maximum Power Level HL&P is authorized to operate the facility at reactor core power levels not in excess of 3800 megawatts the sal (100% power) in accordance with the conditions specified herein and in Attach-ment 1 to this license. The items identified in Attachment 1 to this license shall be completed as specified. Attachment 1 is hereby incorporated into this license. Pending Commission approval, this license is restricted to reactor core power levels not to exceed 5 percent of full power (190 megawatts thermal); (2) Technical Specifications and Environmental Protection Plan The Technical Specifications contained in Appendix A and the Environmental Protection Plan contained in Appendix B, both of which are attached hereto, and hereby incc porated into this license. HL&P shall operate the facility in accordance with the Technical Specifications and the Envircnmental Protection Plan. , (3) Antitrust Conditions Houston Lighting and Power Company, City Public Service Board of San Antonio, Central Power and Light Company and City of Austin, Texas shall comply with the antitrust conditions delineated in Appendix C to this license;. Appendix C is hereby incorporated into this license. (4) Fire Protection (Section 9.5.1, SER, SSER Nos. 2, 3 and 4)* HL&P shall implement and maintain in effect all provisions of the approved fire protection program as described in the Final . Safety Analysis Report, and the Fire Protection of Safe l Shutdown Capability report for the facility, and submittals as l l approved in the SER (NUREG-0781) dated April 1986 and its Supplements, subject to the following provision: The licensee may make changes to the appreved fire protection program without prior approval of the Commission, only if those changes would not adversely affect the ability to achieve and maintain safe shutdown in the event of a fire.

     "The parenthetical notation following the title of many license conditions denotes the section of the Safety Evaluation Report and/cr its supplements wherein the license condition is discussed.

i

l l' l

                                                           \. -

t'

                       '(5)' Physical Security (Section 13.6 SSER No. 3)

HL&P shall fully implement and maintain in effect all provisions of the physical security, guard training and qualification, and safeguards contingency plans previously approved by the Commission and all amendments and revisions to such plans made pursuant to the authority of 10 CFR 50.90 and 10 CFR 10.54(p). The plans, which contain. Safeguards Information protected under 10 CFR 73.71, are entitled: " South Texas Project Electric Generating Station Physical Security Plan," with revisions submitted through March 20, 1987; " South Texas Project Electric Generating Station Security Personnel Qualification and Training Plan," with revisions submitted through March 20, 1987; and " South' Texas Project Electric Generating Station Safeguards Contingency Plan," with revisions submitted through March 29, 1985. (6) SPOS License Conditions (Section 18. . SSER No. 4 HL&P shall accomplish the following prior to startup from the first refueling outage.: (a) Modify the critical safety function displays a) to provide the status of the radioactivity control safety function and b) to continuously display the status boxes that summarize plant safety status. (b) Establish formal mechanisms for controlling system update rates. (c) Investigate and correct excessive display generation times - those greater than 10 seconds. (d) Develop a program and implement procedures for controlling SPDS software and data base changes. (e) Document the process used to verify that the SPDS system requirements are complete and that this process of veriff-cation is independent of the design process. (7) Supplementary Containment Purge Isolation (Section 11.5 SSER No. 4) HL&P shall provide, prior to startup from the first refueling outage, control room indication of the nonnal and supplemental containment purge sample line isolation valve position. (8) Main Cooling Reservoir (Section 2.5.7, SSER No. 2) HL&P shall complete remedial work on the reservoir embankment before the water level is increased substantially over 35 ft. ms1.

D. Exemptions The following exemptions are authorized by law and will .not endanger life or. property or the common defense and security, and certain special circumstances are present.- With the granting of these exemptions, the facility will operate, to the extent authorized herein, in conformity with the ~ application, as amended, the provisions of the. Act, and the rules and regulations of the Commission. > (1) The facility requires a schedular exemption from the requirements The staff has of general Design Criterion 4, Appendix A to 10 CFR 50. described-in detail in Supplement 4 to the Safety Evaluation Report the technical basis associated with this exemption. The staff's . environmental assessment was published on Therefore, pursuant to 10 CFR 50.12(a)(1), 10 CFR 50.12(a)(2)(iii) and (iv), The South Texas Project Unit 1, is exempt from the require-ments of General Design Criterion (GOC) 4, Appendix A to 10 CFR 50 with respect to the dynamic' loading effects associated with the postulated pipe breaks described in detail in Section 3.6.3 of Supplement 4 to the Safety Evaluation Report. These dynamic loading effects include pipe whip, jet impingement, and break-associated dynamic transients. Specifically, this eliminates the need to install jet impingement barriers and pipe whip restraints associated with postulated pipe breaks in the pressurizer surge line, and the accumulator injection lines.. This exemption will expire 6 months following completion of the current GDC-4 rulemaking changes or at the 'end of the second refueling outage, whichever occurs earlier. ! (2) The facility requires a technical exemption from the requirements of 10 CFR 50, Appendix J, Section III.D.2(b)(ii). The' justification of this exemption is contained in Section 6.2.6 of Supplement 3 to the Safety Evaluation Report. The staff's environmental assessment-was published on

                                                                                    . Therefore, pursuant to 10 CFR                        -

50.12(a)(1),10 CFR 50.12(a)(2)(ii) and (iii), The . South Texas I Project Unit 1 is exempt from the quoted requirement and instead, is required to perform the overall air lock leak test at pressure P l prior to establishing containment integrity if air lock maintena$ce has been performed that could affect the air lock sealing capability. (3) The facility requires a schedular exemption from the requirements of General Design Criterion 57, Appendix A to 10 CFR 50. The staff has described in detail in Supplement 4 to the Safety Evaluation Report the technical bases associated with this exemption. The staff's Therefore, environmental assessment was published on . pursuant to 10 CFR 50.12(a)(2)(v) the South Texas Project Unit 1 is i exempt from the requirements of GDC-57 applicable to the essential component cooling water (CCW) piping which is also used by the non-essential chilled water system in providng cooling to the Reactor Containment Fan Coolers (RCFC). This exemption will expire at the end of the first refueling outage. L l L.. _ - _ _ _ _ _ , _ . _ _ _ _ . . _ _ _ _ _ _ _ , _ _ _

(4) The facility wa's previously granted exemption from the' criticality monitoring requirements of 10 CFR 70.24 (See Materials License No. SNM-1972 dated December 29, 1986 and.Section 9.1.2 of SSER-3). The South Texas Project Unit 1 is hereby exempted from the criticality monitoring provisions of 10 CFR 70.24 as applied to fuel assemblies held under this license. E. ExceptasotherwiseprovidedintheTechnicalSpecificationsor Environmental Protection Plan, the licensee shall report any vio-lations of the requirements contained in Section 2.C. of this license in the following manner: initial notification shall be made within twenty-four (24) hours to the NRC Operations Center via the Emergency Notification System with written' follow-up within 30 days in accord-ance with the procedures described in 10 CFR 50.73(b), (c), and (e).

          - F.'  The licensees'sh'all have and maintain financial protection of such type and in such amounts as the Commission shall require in accordance with Section 170 of the Atomic Energy Act of 1954, as amended, to cover public liability claims.

G.- This licensee is effective as of the date of issuance an'd shall expire at midnight on , 2027. FOR THE NUCLEAR REGULATORY COMMISSION l Thomas E. Murley, Director. . Office of Nuclear Reactor Regulation

Enclosures:

1. Attachment 1 -
2. Appendix A - Technical Specifications (NUREG-1255)
3. Appendix B, Environmental Protection Plan
4. Appendix C, Antritrust Conditions Date of Issuance:

p._

    .g -
   ..-                                                                                     ATTACHMENT 1 TO OPERATING LICENSE NO. NPF-71 Prior -to criticality:
1. Justify to the staff's satisfaction the deviation from TMI Action Plan requirement II.E.4.2 as applied to the Component Cooling Water lines which-provide cooling to the Reactor Coolant Pumps, Reactor Coolant Drain Tank.

Heat Exchanger, and Excess Letdown Heat Exchanger.

2. Incorporate into the FSAR the commitments on design modifications, and inspections to confirm adequacy thereof, related to the wear of Bottom-Mounted Instrumentation thimbles.
3. Complete all action's-to the staff's satisfaction on the items related to the Seismic Qualifications Review Team audit documented in Section 3.10.1 of SWR Supplement No. 3.
4. Document compliance with 10 CFR 50.49.
5. Demonstrate adequacy of design with respect to attachment of safety-related components to non-safety-related frames.
6. Justify deviations from Regulatory Guide 8.27.
7. Justify deviations from Regulatory Guide 1.68 with respect to the Loss-of-Offsite-Power Test.

Prior to Full Power Operation: , 1. Address to the staff's satisfaction the items resulting -from the SPDS audit conducted by the staff during January 27-30, 1987 and documented in the meeting summary of March 12, 1987. 4 l The preoperational tests and testing exceptions identified in the attachment to the May 26, 1987 letter from J. H. Goldberg to the USNRC Document Control Desk shall be ccmplete'd in accordance with the scheduled commitments contained in that attachment. l l l I

g CONFORMED- .. December 1980 LICENSE CONDITIONS FOR SOUTH TEXAS PROJECT UNITS NOS. 1 AND 2 LI. A. The following definitions apply to paragraph I.B: (1) " Applicants" means severally and jointly Houston Lighting and Power Company (HLP), Central Power and Light Company (CPL), City Public Service Board of San Antonio-(CPSB),'and the City of Austin Electric Utility Department (C0A) and any of their respective successors, assignees, or subsidiaries engaged in the generation, transmission or the distribution of electric ' power. Where a license condition is directed to a specific Applicant, that Applicant is identified. i (2) " South Texas Area" means (a) those counties in which Appli-cant's serve electric customers at wholesale or retail, and (b) those other areas, if'any, surrounded by the areas in (a) above. f (3) " Entity" means an electric utility which is a person, a private or public corporation, a governmental agency or authority, a municipality, a cooperative, or an association of any of the foregoing owning, operating, or contractually controlling, or proposing in good faith to own, operate, or i contractually control facilities for generation, transmission or distribution of electric power and energy for the purpose of providing electric utility service. (4) " Bulk Power" means the electric power and/or electric energy supplied or made available at transmission or subtransmission l voltages. . (5) " Costs" means all appropriate operating and maintenance expenses and all ownership costs where applicable. (6) The terms " connection" and " interconnection" are used inter-changeably. B. The Applicants defined in Paragraph I. A.(1) are subject to the following antritrust conditions: (1) (a) CPL shall afford to the Public Utilities Board of the City of Brownsville an opportunity to participate in the South Texas Projects, Units 1 and 2, on reasonable terms and conditions and in accordance with the South Texas Project Participation Agreement and on a basis that will fully compensate CPL for its actual costs, provided that Appendix C - South Texas 4 . - - - - - , - ,, e - , ,~,..--,,-,v r,w,,r,v,,e .,,,,--,-,-----.e.e-vm----w,m,sw,,,wr,e-,-.-,,,,,v- - g rw, ,-,- ~r--,,w-,.,--,- -

9 2-Brownsville m'ust enter into a firm commitment to acquire the ownership interest made availatie to it by the terms of this paragraph no later than Ja uary 1,1983. . The ownership interest which CPL shall make available to Brownsville shall .be computed by citiplying CPL's ~ Generation Entitlement Share in STP Units 1 and 2 by the ratio of Brownsv111e's peak demand for 1980 to CPL's peak demand for 1980. In the event Brownsville obtains

                                                                   'an. ownership interest from any Applicant other than CPL, the ownership interest which CPL sust make available to Brownsville hereunder shall be redaced by one megawait for each megawatt in excess of 12 segawatts that Browns-ville acquires from other Applicants. Applicants shall not exercise any rights of first refusal over Brownsville's efforts to participate in the South Texas Project to the-extent of the first 50 MW of such ownership share.

{ (b) CPL shall-afford Brownsville reasonable transmission services to enable it to obtain delivery of power from the STP, provided that CPL is fully compensated-for its costs of such transmission services plus a reasonable return on investment,- and provided further that in the i event transmission capacity is not available to provide such transmission services, the provisions of Paragraph . I.B.(4) hereof define the extent of the obligation which CPL has with respect to the construction of additional transmission facilities necessary to provide such _trans-mission service. (c) CPL will also afford all reasonable coordination services (including but not limited to reserve sharing, backup

                                                                     ' power, maintenance power and emergency power) necessary for Brownsville to have effective access to power from                                                                          ^

I STP obtained from CPL, provided that CPL is fully com-pensated for its costs of providing such coordination services plus a reasonable return on investment, i (d) Each Applicant shall facilitate where necessary Browns-ville's obtaining the participation interests and services specified in paragraphs 1(a),1(b), and 1(c) above. L (2) The Applicants, as long as they are members of the Texas Interconnected Systems (TIS) or any other organization which considers the planning for or operations of ERCOT-TIS elec-I tric utilities, shall support reasonable requests by Entities in the South Texas Area having generation capacity for member-ship in TIS or such other organizations. The Applicants shall also propose and actively support, as long as they are members thereof, the creation of one or more additional Appendix C - South Texas e ne- , ---e w -,. -- v-- an,,-- ,,n- , - - - - , --,---w--- -,,-.. e--me---,cm_,en -,-,--<-,-----,n rs,v,-w ,,,-o,-,- .+ r ,-w-, r,, e----,,,r,-mvem- -,

s., , classification of TIS membership, based on non-discriminatory criteria to afford access to data, studies and recommendations to all Entities in the South Texas Area who desire membership.

                                             .The Applicants -shall share information with other Entities
                                             - with respect to, and shall conduct with other such Entities-through any electric utility planning organizations of..which the Applicants are members, joint studies and planning of
'                                              future generation, transmission and related facilities;                   ;

provided, however, that this condition shall not obligate the

                                             - Applicants to conduct such joint studies or joint planning unless (1) the studies or planning are requested and carried out in good faith and based on reasonably realistic and reasonably complete data or projections, (2) the studies or planning are reasonably justified on the basis of sound engineering principles, (3) appropriate protection is accorded proprietary or other confidential business and t                                                financial information, and (4) the costs of such studies or planning are allocated on a fair and equitable basis.

(3) Each Applicant shall participate in and facilitate the exchange of bulk power by transmission over its own transmission facilities between or among two or more Entities in the South

 '                                               Texas Area with which the Applicant is connected; and between           <

any such Entity (ies) and any Entity (ies) outside the South Texas Area between whose facilities the Applicant's trans-mission lines and other transmission lines, including direct current (asynchronous) transmission lines, form a continuous electrical path; provided, that (i) permission _to utilize

!                                                  such other transmission lines has been requested by the pro-ponent of the arrangement, (ii) the arrangements reasonably can be accommodated from a functional and technical stand-point, and (iii) any Entity (ies) requesting such transmission arrangements shall have given reasonable advance notice of          .

its (their) schedule and requirements. Such transmission shall be on terms that fully compensate an Applicant for its costs including a reasonable return on investment; provided, however, that such transmission services and the rates to be charged therefor shall be subject to the jurisdiction of the l appropriate regulatory agency (ies). Where the rates to be l i charged are subject to the jurisdiction of an appropriate regulatory authority, the Applicants shall not refuse to provide such transmission services merely because the rate (s) to be charged therefor are the subject of dispute with such Entity (ies). An Applicant shall not be required to enter into any arrangement which would unreasonably impair system reliability or emergency transmission capacity, it being recognized that while some transmission may be operated fully loaded other transmission may be for emergency use and operated either unloaded or partially loaded. Appendix C - South Texas 4 6

l 4 <4 (4) Each Applicant shall include in~its planning and construction

                                                                   ~

programs sufficient transmission capacity as required for the

                                                                     -transactions referred to in paragraph I.B.(3) (and I.B.(5) for CPL), provided any Entity (fes) in the South Texas Area gives an Applicant sufficient advance notice as may be neces--
              ~

sary to accomodate.its (their) requirements'from a functional and technical standpoint and that such Entity (fes) fully compensates an Applicant for its costs including a reasonable return on investment.1/ An Applicant shall not be required to construct transmission facilities if construction of such facilities is infeasible, or if such would unreasonably impair system reliability or emergency transactions capacity. In connection with the performance of the obligations above,- an Applicant shall not be foreclosed from requiring a reason- ' able contribution in aid of construction or from making arrangements for coordinated construction of future trans-mission lines such that each of the parties to the trans-action would own an interest in or a segment of the trans- - mission addition in proportion to its share of the cost of l the addition. Any such contribution made in aid of construc- ! tion or ownership interest shall also be properly credited in determining any wheeling charges. If an Applicant engages in joint ownership of transmission lines with any other Entity (ies), it shall not refuse.to engage in similar transactions in comparable circumstances with other Entities, subject to the provisions limiting an Applicant's obligations above. i [ (5) CPL shall, upon reasonable advance- notice, enter into arrange-ments for the sale of full .and partial requirements bulk  ! power pursuant to a filed tariff to any requesting Entity having a non-aggregated generating capacity of 200 megawatts or less under reasonable terms and conditions which shall - include a provision for-CPL to recover its costs of providing such service plus a reasonable return on investment. Such tariff shall not require CPL to enter into any arrangement for such sale (s) if (a) it does not have available sufficient bulk power or adequate transmission to provide the requested service; or (b) the sale would impair CPL's ability to render adequate and reliable service to its own customers or its ability to discharge prior commitments. It is expressly recognized, and such tariff may reflect, that the determination whether suffi-cient bulk power or adequate transmission is available to accom-modate a request for full or partial requirements bulk power will consider and recognize that (1) CPL will be engaging in y Nothing in this paragraph shall require CPSB or COA to undertake any action (s) which may be contrary to any state constitutional provision. Appendix C - South Texas

    - - .       -,-y,- .--..,-,-y-,,-,.-...m.-.,m.--,.#,                         .. ,- - -,-. - , ,,,.-,......m.,---__..                                   --m.,- ...-..- ,

centralized economic dispatch with its affiliates in accord-ance with, and pursuant to the requirements of,.the Public Utility Holding Company Act of 1935, (2) pursuant to such. requirements CPL may first utilize its generating and trans-mission capacity to accomplish such centralized economic dispatch before its generating and tratsmission capacity is made available for full or partial requirements bulk power sales under the tariff, and (3) if other CSW system capacity becomes available by reason of CPL's pa-ticipation in such centralized economic dispatch, then such other CSW system capacity will, at the option of CN, be made available in lieu of CPL's obligation to provide such capacity. Any curtailment of CPL's full or partial requirements sales shall be on a reasonable and non-discrininatory (where possible)

                        ~

basis. (6) (a) In connection with the performance of its obligations herein and subject to the provisions of this paragraph, HLP shall not disconnect from or refuse to connect its then-existing or proposed facilities with the facilities of any Entity used or proposed to be used for the trans-mission of electric energy in interstate commerce by reason of the interstate character of such facilities, and HLP will not prevent any Entity with which it main-tains connections from establishing, maintaining,-modi-fying or utilizing a connection with facilities used or proposed:to be used for the transmission of electric energy in interstate commerce by reason of the inter-state character of such facilities, provided that, anything in these license conditions to the contrary notwithstanding (but subject to s@ paragraph 6(b) and 6(d) below) any Entity seeking to establish, maintain, modify or utilize any connection which could affect the - nonjurisdictional status of HLP under the Federal Power Act shall have filed an application with and used its best efforts to obtain an order from the FERC, applicable to HLP under Section 210, 211 and 212 of such Act, requiring the establishment, maintenance, modification or utilization of such connection. In the event that an Entity files an application pursuant to this subparagraph, HPL agrees that it will not unreasonably oppose any such application. In the event such applicati<.n is denied by a valid order of the FERC, any continuing refusal by HLP to estabish, maintain, modify or utilize such connection with such Entity shall be subject to review by the NRC in accordance with the Atomic Energy Act of 1954, as amended, and the rules and regulations thereunder, to determine whether any such refusal would create or maintain a situation inconsistent with the antitrust l Appendix C - South Texas

o-6- laws or the policies thereunder in accordance with the standards set-forth in.Section 105 of such Act; provided that all factual determinations by the FERC on any cost or system reliability reason (s) for any such refusal , l shall not be subject to redetermination by the NRC. The l burden of proof will be on the HLP in such NRC proceeding. (b) HLP shall not enter into or maintain any agreement or understanding with any other Entity (ies) or Applicant to refuse to deal with another Entity (ies) or Applicant (s) with the purpose of maintaining a non-jurisdictional

,!                                                                                        - status under the Federal Power Act, and in the event -

that HPL refuses to make an interconnection with or chooses to disconnect from any Entity (ies), such decision and/or action by HLP will be undertaken unilaterally, not jointly, and without consultation with any other - Entity (ies), provided, however,-that after HLP decides to undertake such action, it may notify any affected Entity of its decision.- (c) In the event that an Entity files an application pursuant to subparagraph (a) of this paragraph solely by reason of HLP's desire to maintain its non-jurisdictional status under the Federal Power Act, HLP agrees to pay such Entity's reasonable expenses in connection with such application and the ensuring proceeding, 2/ provided, however, that HLP shall not be required to pay for any expenses of such Entity of that Entity's application is denied by FERC for reasons advocated by HLP at FERC, and l provided further, that HLP shall not be required to pay l' for any costs or expenses of such Entity which that Entity would have incurred had it not failed an applica-tion solely by reason of HLP's desire to maintain its - non-jurisdictional status under the Federal Power Act. (d) Nothing in these License Conditions shall impair the right of the Department of Justice or any other Entity, l public or private, to file an antitrust action in any Federal Court in the event any Applicant refuses to l establish, maintain, modify or utilize any connection j f with any Entity (ies), provided that nothing herein shall preclude any Applicant from raising any legal or equitable l defense that may be available to it. l i 2/ This obligation shall not apply to the expenses of Central and South West Corporation or Texas Utilities Company or any of their respective sub-l sidiaries, including but not limited to the expenses of CSW and any of l its subsidiaries incurred in FERC Docket No. EL79-8. Appendix C - South Texas l

    -,w.-.-       _ . , ,.-. . . _-.w , _ . . , -         . . , - , . . . . _ , , _             ._,,c ,   ,_.,,-y,,,_,myy.,m      ,,,.m., . _ _ . _ ,--,%.,m       _ , , ,, y., _, ,p-w-,,%.,,.m.....-_.
  .;o\

(7) 'HLP agrees to use its best efforts to amend any agreements with all Entities to ensure that such agreements are not inconsistent with paragraphs (6)(a)-and (6)(b) hereof. (8) If Applicants participate in any future nuclear units other than those which are now under construction or for which an application for a construction permit has been filed, they will afford similar participation to Entities in the South Texas Area on a reasonable basis. . (9) Applicants agree that the reliability of power delivered into TIS-ERCOT over DC asynchronous connections shall not be treated differently by the Applicants, for purposes of spinning and installed reserve calculations and requirements, than would be the case if such power originated with TIS-ERCOT. Outages on DC asynchronous connections shall be treated by the Applicants in the same way as losses of generation within TIS-ERCOT. Applicants agree to support the adoption of

                     ~ principles involving DC asynchronous connections contained in this paragraph within any TIS or ERCOST organization.

(10) HLP and CPL shall use their best efforts to modify the Offer of Settlement filed in FERC Docket No. EL79-8 to include each of the undertakings set forth in the letter agreement among HLP, Central and South West Corporation, Texas Utilities Company and the FERC staff, dated September 11, 1980. HLP and CPL shall thereafter use their best efforts to secure approval thereof by the FERC, and shall abide by any valid order (s) of the FERC issued purusant to the Offer of Settle-ment. Nothing herein shall preclude the Department of Justice from instituting or intervening in any proceeding at FERC, including Docket No. EL79-8, and from presenting such argu-ments and evidence that it deems appropriate. - (11) The foregoing conditions shall be implemented (1) in a manner l consistent with applicable Federal, state and local statutes j and regulations, and (2) subject to any regulatory agency havingjurisdiction. Nothing herein shall preclude the Applicants from seeking an exemption or other relief to which they may be entitled under applicable law or shall be construed as a waiver of their right to contest the applicability of the license conditions with respect to any factual situation. t Appendix C - South Texas l' i a _ _. _ _ _ _ . _ .. .._ , _ _ _ _ _ _ . _ _ _ _ _ _ .}}