ML20236H693
| ML20236H693 | |
| Person / Time | |
|---|---|
| Site: | Perry  |
| Issue date: | 06/30/1998 |
| From: | CENTERIOR ENERGY |
| To: | |
| Shared Package | |
| ML20236H683 | List: |
| References | |
| NUDOCS 9807070311 | |
| Download: ML20236H693 (27) | |
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Attachm:nt 1 PY-CEI/NRR-2292L Page1ofi1 UNITED STATES OF AMERICA NUCLEAR REGULATORY COMMISSION In the Matter of )
The Cleveland Electric Illuminating Co. )
Docket No. 50-440 )
Perry Nuclear Power Plant, Unit 1 )
Application for Order and Conforming License Amendment to Transfer Operating Authority to FirstEnerny Nuclear Operatine Comnany I.
SUMMARY
OF REOUEST This application requests that the Nuclear Regulatory Commission (NRC), pursuant to 10 CFR 50.80, issue an order consenting to the transfer of operating authority for the Perry Nuclear Power Plant ("PNPP") from The Cleveland Electric liiuminating Co. ("CEICO") and Centerior Service Company ("CSC") to a new operating company t.siled the FirstEnergy Nuclear Operating Company ("FENOC"). This application also reauests a conforming amendment to Facility Operating License No. NPF 58 (the " License") to include FENOC as a licensee thereunder and to authorize FENOC to use PNPP and to possess and use related licensed nuclear materials in accordance with the same conditions and authorizations included in the current operating license.
CEICO, the Toledo Edison Company ("TE"), the Ohio Edison Company ("OE"), OES Nuclear, Inc. ("OES") and the Pennsylvania Power Company ("PP"), wholly owned subsidiaries of the FirstEnergy Corp. ("FE"), and the Duquesne Light Company ("DL")
. (hereinafterjointly referred to as "the Owners") along with CSC are currently the holders of the License for PNPP. The operating license presently authorizes CEICO, TE, OE, OES, PP, and DL to possess PNPP as owners, and authorizes CEICO and CSC to use and operate PNPP in accordance with the terms and conditions of the license. CEICO and CSC are authorized to act for the Owners and presently have exclusive responsibility for and control over the operation and maintenance of the facility under the license.
As explained in more detail below, the Owners will enter into an amended operating agreement which will include FENOC. In accordance with the proposed operating agreement amendment, FENOC will assume exclusive responsibility for the operation and maintenance of PNPP following approval of the transfer of operating authority requested by this application. After issuance of the transfer order and conforming license amendment, the i
Owners will be authorized only to possess the facility and CSC will be removed entirely from the license. This revised operating arrangement is expected to enhance the already high level of public safety, operational efficiency, and cost-effective operations at PNPP.
o Ownership of PNPP will not be affected by the proposed transfer of operating authority. Each Owner will retain its current ownership interest and FENOC will not own any portion of 1
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Attachment 1 PY-CE!/NRR-2292L Page 2 of11 PNPP. Likewise, the Owners' entitlement to capacity and energy from PNPP will not be '
affected by the proposed transfer of operating responsibility.
FENOC will be dedicated solely to the operation of FE Nuclear Units. Once the transfer has been approved, it is expected that substantially all personnel of CEICO and CSC who are dedicated to the operation of PNPP will be transferred to and become employees of FENOC.
Therefore, the technical qualifications of the proposed FENOC organization will be at least equivalent to those of the existing organization.
Under the terms of the proposed operating agreement amendment between FENOC and the Owners, all costs associated with operating PNPP will continue to be borne by the Owners to the same extent as they are now. Further, the status of the Owners as " electric utilities" under the NRC's financial qualifications rule will be unaffected by this reorganization. Accordingly, there will be no change in the financial qualifications associated with PNPP.
II. BACKGROUND AND DESCRIPTION OF REORGANIZATION PNPP is a single unit nuclear powered electric generating facility that has been constructed by the Owners and is being operated by CEICO and CSC on behalf of the Owners pursuant to an Operating Agreement dated Much 10,1987, as amended, and in accordance with the PNPP Operating License and certain other permits and licenses. Under the current Operating Agreement, CEICO acts as plant operator for the other Owners and has exclusive responsibility and control over the construction, operation and maintenance of PNPP. CEICO owns a 31.11% interest in the facility, TE owns a 19.91 % interest, OE and OES own a 30.00%
interest, Penn Power owns a 5.24% interest, and DL owns a 13.74% interest in PNPP.
Once all organizational arrangements are finalized, FENOC will be established as an Ohio corporation wholly-owned by FirstEnergy Corp. FENOC's sole corporate purpose will be the operation of FirstEnergy's nuclear plants on behalf of and for the benefit of the owners. A new operating agreement will be executed with the Owners to govern operation of PNPP by FENOC and will become effective after receipt of all necessary agency approvals.
The relationship between the Owners and FENOC will be defined in the new Operating Agreement. This Operating Agreement will define FENOC's rights, responsibilities, and limitations ofits authority regarding the operation of PNPP and will state that FENOC has the sole authority, as the operator of the PNPP, to make all decisions relating to public health and safety. The Owners will continue to provide all funds for the operation, maintenance, and decommissioning by FENOC of PNPP. The responsibility of the Owners will include funding for any emergency situations that might arise at PNPP.
Upon the effective date of the transfer, substantially all employees of CEICO and CSC who are presently dedicated to the operation of PNPP will become employees of FENOC, Ill. 11EOUESTED APPROVALS This application requests that the NRC, pursuant to 10 CFR 50.80, issue an order consenting to the transfer of operating authority for PNPP from CEICO and CSC to FENOC. It is requested j that this order be issued as soon as practicable, be made immediately effective, and remain valid through December 31,1999, subject to extension for good cause.
I
Attachment 1 PY-CEl/NRR 2292L Page 3 of11 This application also requests that the NRC issue conforming amendments to Operating License No. NPF-58. Hese amendments would be issued by the NRC upon notification by applicants that all actions and approvals required for the transfers have been completed. The 4 conforming amendments would designate FENOC as the entity authorized to operate PNPP and possess and use the related licensed nuclear materials, and more specifically, change the license to provide that- 4 I
I (1) FENOC, pursuant to Section 103 of the Act and 10 CFR Part 50 is licensed to possess, use, and operate the facility at the designated location in Lake County, Ohio in accordance with the procedures and limitations set forth in this license;.
(2) The Cleveland Electric Illuminating Company (CEICO), Duquesne Light Company, Ohio Edison Company, OES Nuclear, Inc., Pennsylvania Power Company and Toledo Edison Company, pursuant to the Act and 10 CFR Part 50, are licensed to possess the facility at the designated location in Lake County, Ohio, in accordance with the procedures and limitations set forth in the license; (3) FENOC, pursuant to the Act and 10 CFR Part 70, is licensed to receive, possess !
and use at any time special nuclear material as reactor fuel, in accordance with I the limitations for storage and amounts required for reactor operation, as i described in the Final Safety Analysis Report, as supplemented and amended; (4) FENOC, pursuant to the Act and 10 CFR Parts 30,40, and 70, is licensed to receive, possess, and use at any time any byproduct, source and special nuclear
{
material as sea'ed neutron sources for reactor start-up, as sealed sources for i reactor instrumentation and radiation monitoring equipment calibration and as fission detectors in amounts as required; I
(5) FENOC, pursuant to the Act and 10 CFR Parts 30,40, and 70, is licensed to receive, possess and use in amounts as required any byproduct, source or special nuclear material without restriction to chemical or physical form, for sample analysis or instrument calibration or associated with radioactive apparatus or components; and (6) FENOC, pursuant to the Act and 10 CFR Parts 30,40, and 70, is licensed to possess, but not separate, such byproduct and special nuclear materials as n,ay be produced by the operation of PNPP.
(7) (a) Ohio Edison Company is authorized to transfer any portion ofits 30.0%
ownership share of PNPP Unit I and a proportionate share ofits interest in the PNPP common facilities to certain equity investors identified in its submission of January 23,1987, as supplemented on March 3,1987, and at the same time to lease back from such purchasers such interest sold in the PNPP Unit 1 facility. The term of the lease is for approximately 29-1/2 years subject to a right of renewal. Such sale and leaseback transactions are subject to the representations and conditions set forth in the above-
! mentioned application of January 23,1987, as supplemented on March 3,
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Attachment 1 PY-CEl/NRR-2292L Page 4 of11 1987, as well as the letter of the Director of the Office of Nuclear Reactor Regulation dated March 16,1987, consenting to such transactions.
Specifically, a lessor and anyone else who may acquire an interest under these transactions are prohibited from exercising directly or indirectly any control over the licenses of PNPP, Unit 1. For purposes of this condition the limitations of 10 CFR 50.81, as now in effect and as may be subsequently amended, are fully applicable to the lessor and any successor in interest to that lessor as long as the license for PNPP Unit I remains in effect; these financial transactions shall have no effect on the Perry Nuclear facility throughout the term of the license.
(b) Further, the licensees are also required to notify the NRC in writing prior to any change in: (i) the terms or conditions of any lease agreements executed as part of these transactions; (ii) the PNPP Operating Agreement; (iii) the existing property insurance coverage for PNPP, Unit 1; and (iv) any action by a lessor or others that may have an adverse effect on the safe operation of the facility.
Other proposed conforming license changes are noted in Attachment 4 to this application. As described in Attachment 3, the proposed changes have been reviewed pursuant to the standards provided in 10 CFR 50.92(c), and it has been determined that the proposed changes do not involve a significant hazards consideration.
Conforming changes, if necessary, in insurance and indemnity agreements will be made in due course by separate correspondence.
IV. SUPPORTING INFORMATION A. Description of Business or Occupation:
FENOC will be organized by FirstEnergy Corp. as an Ohio corporation, and the Owners will take necessary corporate action to authorize it to operate PNPP, subject to regulatory approval. FENOC's sole purpose will be to opeste and maintain FirstEnergy's nuclear plants for the owners. The business address of FENOC will be provided after the address is finalized.
Upon receipt of necessary regulatory approvals, FENOC, as distinct from the Owners of PNPP, will have responsibility for and control over the construction, operation, and maintenance of PNPP.
B. Organization and Manacement of Oneratine Corporation:
FENOC will be a corporation organized and existing under the laws of the State of Ohio. The corporation will be a wholly owned subsidiary of FirstEnergy Corp., and will be neither owned, controlled nor dominated by an alien, a foreign corporation or a foreign government.
L Attrchm nt 1 l1 PY-CEI/NRR-2292L Page 5 of11 L ~
.- + All directors and principal officers of FENOC will be citizens of the United
' States. Their names and addresses will be furnished after they have been selected.
C. . Technical Qualifications l . .
l The technical qualifications of FENOC to carry out its responsibilities under the Operating Licenses for PNPP, as amended, will be equivalent to the
_ present technical qualifications of CEICO and CSC. When the transfer
' becomes effective, the present plant organization, including the quality assurance, engineering and technical support functions will be' transferred essentially intact from CEICO to FENOC. The technical qualifications of the -
proposed FENOC organization, therefore, will be at least equivalent to those of the existing organization.
A central objective in planning the proposed transfer of employees and l . operating responsibilities from CEICO and CSC to FENOC has been to ensure
' there is no disruption to the operation of the plant and to respect the integrity l
> of the existing, successful organization. When the transfer becomes effective,
' 'i
- FENOC will operate, manage and maintain PNPP in accordance with the - 2
- conditions and requirements established by the NRC and with the same regard -
for public and personal safety heretofore exemplified by CEICO and CSC.
L Therefore, in the proposed FENOC organization, the nuclear organization of ,
L
' PNPP will be preserved with th'e only change being that the senior nuclear executive will report to Directors of FENOC, rather than to the President and CEO of CSC. The current Vice President, Nuclear, of PNPP will become a Vice President of FENOC and will continue to be the officer at the site l . responsible for the overall safe operation and maintenance of PNPP.
i I
The Quality Assurance organization for the plant will also have direct access to the site Vice President of FENOC on matters related to quality; therefore, the effectiveness of this organization will not be reduced by the proposed change.
_ 1 The above organizational approach allows the transfer of CEICO and CSC personnel to FENOC with minimal organizational changes and with no anticipated disruption to L the existing, dedicated site organizations.
l l _D' Statement of Benefits of the License Amendment o ,.
L The assumption of operational responsibility for PNPP by FENOC will provide benefits inherent in this type of operating arrangement. Some of the expected benefits are as follows:
. (1) As a result of the formation of FENOC, FENOC's senior management
. will be devoted solely to the business of nuclear plant operations.
= Such single-purpose management will be able to pursue overall excellence in nuclear power operations withc.at distractions from the
- requirements and duties ofother areas of the electric utility business.
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Attachment 1 PY-CEl/NRR-2292L Page 6 of 11 (2) FENOC will be a repository of the Owner's nuclear operating and management expertise and experience. Consolidation ofnuclear operations talent into one company will enhance both public safety and economic plant operation.
(3) As a result of the formation of FENOC, the salary structures, career path policies and procedures for nuclear employees of FENOC will be separate and distinct from FE's non-nuclear employees and will be determined by the management and Board of Directors ofFENOC.
This will permit nuclear managers to focus on the special needs, qualifications, and requirements of nuclear employees. Human resource and compensation policies tailored to nuclear operations will allow FENOC to be competitive in the market for skilled nuclear professionals without being influenced by the potential impact on non-nuclear personnel. The ability to attract superior nuclear talent and to retain quality individuals, once recruited, will have a direct and positive impact on the quality of overall nuclear plant operations.
E. Financial Considerations The proposed license amendments will not adversely impact the Owners' ability to obtain or provide the funds necessary to cover all costs for the operation, maintenance, repair, decontamination, and decommissioning of PNPP. The Owners will remain liable for such costs, on a pro rata basis, under the proposed operating agreement amendment. The Owners' financial responsibility for PNPP and their sources of funds to support the facility will remain the same as under the present License.
FENOC will be an operating company with no ownership interest in PNPP.
FENOC, under the proposed operating agreement amendment with the Owners, will be authorized to operate the plant on behalfof the Owners.
Further, as discussed below, the Owners will be committed under the proposed operating agreement amendment to provide all funds necessary for safe operation and decommissioning of PNPP in conformance with NRC regulations.
To summarize, the following interrelations will be established by the proposed operating agreement amendment between the Owners and FENOC:
(1) FENOC will not have any ownership interest in PNPP; however, it will have overall responsibility for the safe operation of PNPP.
FENOC will operate PNPP in accordance with the Oper.ating License and shall have exclusive responsibility for making safety decisions.
(2) The Owners will retain their current authority to review and approve budgets. This will not encumber FENOC's ability to make operational safety decisions and should have no impact on safe operation of PNPP.
4 Attachment 1 PY-CEI/NRR 2292L Page 7 ofl1 (3) Pursuant to the proposed operating agreement amendment, all costs, including costs for the operation, maintenance, repair, decontamination and decommissioning of PNPP, incurred or accrued are liabilities of the Owners when incurred or accrued and are borne .in proportion to their respective undivided interests in PNPP and the Owners will commit to provide FENOC funds to pay these costs.
Thus, the sources of funds for operating PNPP will remain unchanged.
A full financial qualification review is not necessary as a result of the proposed license amendments. Under the terms of the proposed operating agreement amendment between FENOC and the Owners, all costs associated with operating PNPP will continue to be borne by the Owners to the same extent as they are now, and accordingly, there will be no change in the financial qualifications associated with PNPP. Further, the status of the owners as electric utilities under the NRC's financial qualifications rule will be unaffected by this reorganization. Therefore, the information required under 10 CFR 50.33(f) regarding the financial qualifications of FENOC to carry out the activities described in this application is not necessary.
F. Antitrust Considerations The plan for FENOC to operate PNPP will not affect the existing ownership of PNPP or existing ownership of or entitlement to power. FENOC will be solely dedicated to the operation of FirstEnergy's nuclear plants. It will not be involved in the marketing or brokering of power er energy from the facility. To reinforce this aspect of the reorganization, FENOC proposes the addition of the following language as a condition of this license:
FENOC shall not market or broker power or energy fnom PNPP. The Owners are responsible and accountable for the actions of FENOC to the extent that said actions affect the marketing or brokering of power or energy from PNPP.
With this condition, the NRC staff has determined in similar cases that the addition of a new non-owner operator does not require any further antitrust review (SECY-91-246, Antitrust Considerations for License Amendments Authorizing New Operating Entities (Aug. 7,1991)}. Moreover, the proposal to designate FENOC as the entity authorized to use and eperate PNPP will not alter the existing antitrust License conditions applicable to the Owners. Those conditions will remain applicable to all Owners. Accordingly, the requested amendments will have no impact whatsoever on the market for electric power and raise no issues with respect to antitrust considerations affecting that f market.
l G. Restricted Data l l
l
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Attachment 1 PY CEI/NRR-2292L i Page 8 of11 This application does not contain any Restricted Data or other classified defense information, and it is not expected that any such information will
{ become involved in the licensed activities. However, in the event that such information does become involved, FENOC agrees that it will appropriately l' safeguard such information and it will not permit any individual to have L
access to Restricted Data until the Office of Personnel Management shall have
- made an investigation and report to the NRC on the character, associations and i
loyalty of such individual, and the NRC shall have determined that permitting
!' such person to have access to Restricted Data will not endanger the common I defense and security of the United States.
L V. i SPECIFIC INFORMATION REGARDING RELATED ISSUES
' A. Public Health. Safety and Welfare Considerations The proposed license amendments would designate FENOC as a Licensee and l: authorize FENOC to manage, operate, and maintain PNPP on behalf of the other Licensees (the Owners). . It would not affect the physical configuration of the facility or adversely affect the Technical Specifications under which PNPP operates. Moreover, as described in this application, the technical qualifications of FENOC to operate PNPP will be at least equivalent to those of CEICO and CSC. The proposed license amendments will therefore not p . have any adverse impact on the public health, safety and welfare.
L B. Emernency Plannina -
Upon approval of the transfer, FENOC will assume authority and responsibility for functions necessary to fulfill the emergency planning requirements specified in 10 CFR 50.47(b) and Part 50, Appendix E. No substantive changes will be made to the' existing PNPP Emergency Plan presently implemented by CEICO and CSC nor will there be any immediate changes to the existing Emergency Response Organization as a result of these proposed amendments.
Appropriate action will also be taken with respect to _ existing agreements for support from organizations and agencies not affiliated with the Licensees, to notify the parties to such agreements of FENOC's relationship with the Owners and FENOC's' responsibility for management and operation of PNPP.
This will be accomplished by CEICO and CSC prior to the change of responsibility.
L In sum, the proposed license amendments will not impact compliance with the emergency planning requirements. Because the effectiveness of the Emergency Plan will not.be decreased, specific emergency plan and procedure changes to reflect the change in the entity responsible for plant operation will l
be submitted to the NRC after the changes are made, in accordance with 10 CFR 50.54(q) and Appendix E,Section V, as appropriate.
Attachment 1 PY-CEl/NRR-2292L I Page 9 of 11 C. . Offsite Power Offsite power is currently provided to PNPP over transmission facilities owned or controlled by the Owners. These arrangements will not change as a i result of the change in operational control requested by this application. The proposed license amendments to authorize assumption ofoperating responsibility by FENOC involve no changes in the ownership or design of the offsite power system for PNPP, or in its operation. maintenance or testing.
Upon approval of the transfer, CEICO will continue to fulfill its current responsibilities with respect to compliance with Geneml Design Criterion (GDC) 17.
Based on the foregoing, there is adequate assurance that independent sources of off-site power will continue to be provided to PNPP.
D. Exclusion Area Upon approval of the transfer, FENOC will have authority to determine all activities wL m the PNPP exclusion area, to the extent required by 10 CFR Part 100. '
Currently, the Owners control all surface and subsurface property rights within the exclusion area boundary of PNPP. With respect to property rights owned by the Owners, CEICO and CSC currently have authority, as the Plant Operators, to exercise appropriate exclusion area control. Under the proposed operating agreement amendment between the Owners and FENOC, it will be expressly agreed that FENOC will have unrestricted access to the property constituting the PNPP site including all land, facilities, switchyard, equipment, and personal propeity on the site. The operating agreement amendment also will grant FENOC authority to exercise complete control over the exclusion area as defined in the Updated Safety Analysis Report (USAR) and to determine all activities in that area.
With respect to the activities unrelated to plant operation that will occur within the exclusion area identified in Section 2.1.2.2 of the USAR, there will be no change. FENOC will assume responsibility for the Emergency Plan as discussed above.
E. Security i
The proposed transfer will not impact compliance with the physical security i requirements of 10 CFR Part 73. Upon assumption of operating responsibility, FENOC will assume ultimate responsibility for implementation of all aspects of the present security program. Appropriate action will be l
taken with respect to existing agreements for support from organizations and l agencies not affiliated with the Licensees to notify the parties to such agreements of FENOC's relationship with the Owners and FENOC's responsibility for management and operation of PNPP. Changes to the plans reflecting this transition will not decrease the effectiveness of the plans and L
I J
, ,3 Attechment I b <
PY-CEI/NRR-2292L Page lo ofil
+ will be submitted to the NRC within two months after the changes are made, in accordance with 10 CFR 50.54(p).
' F. ~ Ouality Assurance Program The proposed transfer will not impact compliance with the quality assurance requirements of 10 CFR 50, Appendix B, nor will it reduce the commitments in the NRC accepted quality assurance program description for PNPP. Upon assumption of operating responsibility, FENOC will assume the ultimate
. responsibility for present functions associated with the PNPP. Quality
' Assurance Program. As discussed above, the Quality Assurance organization will have direct access to the site Vice President of FENOC on matters related .
. to quality.' Otherwise, the. organization, function and structure of the PNPP L
Quality Assurance organization will not be affected. Changes to reflect the
. transition, which will be handled in accordance with 10 CFR 50.54(a), will not reduce the commitments in the quality assurance program description.
G. Updated Safety Analysis Reoort With the exception of areas discussed in this ' application, the proposed transfer will not change or invalidate information presently appearing in the PNPP -
USAR.' Revisions to the USAR necessary to reflect the assumption of operating authority by FENOC will be incorporated into the PNPP USAR
- following NRC approval in accordance with 10 CFR 50.71(c).
H. Traininn The proposed transfer will not impact compliance with the operator requalification program requirements of 10 CFR 50.54 and related sections,-
nor' maintenance of the Institute of Nuclear Power Operations accreditation for licensed and non-licensed personnel training. Upon assumption of operating responsibility for PNPP, FENOC will assume ultimate responsibility for implementation of present training programs. Changes to the programs to reflect the transition will not decrease the scope of the approved operator requalification program in accordance with 10 CFR 50.54(i).
I. ' Decommissioning In accordance with 10 CFR 50.75, the Owners have certified that sufficient
, funding will be made available for the proper decommissioning of PNPP. The -
funding mechanisms for each Owner are in place, and the proposed change to the licensed operator for PNPP will not impact each Owner's obligations for its pro-rata share of the PNPP decommissioning costs.
V. . - CORRESPONDENCE On the effective date of the transfer, all NRC correspondence rElated to Docket No.
50-440 including any NRC response to license amendment applications which were l
submitted earlier than and remain outstanding as of the effective date of the transfer,
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Att:chment 1 PY-CEI/NRR-2292L Page11of11 l
. should be directed to FENOC. All applicable correspondence related to PNPP will be I transmitted by FENOC to the NRC. FENOC will notify NRC in writing of any exceptions to this policy.
VL ENVIRONMENTAL CONSIDERATIONS l
The proposed Operating License change and transfer was evaluated against the criteria i of 10 CFR 51.22 for environmental considerations. The proposed change does not significantly increase individual or cumulative occupational radiation exposures, does not significantly change the types or significantly increase the amounts of effluents that may be released offsite and, as discussed in Attachment 3, does not involve a significant hazards consideration.
Based on the foregoing, it has been concluded that the proposed license amendment and transfer meets the criteria given in 10 CFR 51.22(c)(9) for categorical exclusion for an Environmentallmpact Statement.
' VIII. EFFECTIVE DATE The proposed operation of PNPP by FENOC is conditioned upon the consummation of the proposed business agreements, in addition to the NRC approvals. It is intended that the change in licensed operator of PNPP take place as soon as possible after all regulatory approvals have been obtained, and in any event prior to December 31,1999. It is requested that the NRC review this request on a schedule that will permit issuance of an immediately effective order consenting to the transfer as promptly as possible, and in any event before !
December 31,1998. CEICO will keep the NRC Staffinformed as to the status of any changes j in the estimated date for consummation and will notify the NRC staff when it is ready for the i conforming license amendments to be issued.
IX.- COMMITMENTS i
The following tab!e identifies those actions which are considered to be regulatory ;
. commitments. Any other actions discussed in this document represent intended or planned l
actions, are described for the NRC's information, and are not regulatory commitments. Please i notify the Manager - Regulatory Affairs at the Perry Nuclear Power Plant of any questicns
!. regarding this document or any associated regulatory commitments.
L Commitments I Appropriate action will also be taken with respect to existing agreements for support from l- ~ organizations and agencies not affiliated with the Licensees, to notify the parties to such !
agreements of FENOC's relationship with the Owners and FENOC's responsibility for .
management and operation ofPNPP. This will be accomplished by CEICO and CSC prior to !
the change of responsibility.
p l
g., . . e:
l Attachment 2 I
1 PY-CEI/NRR-2292L
- Page 1 of 6 l
. a:
SAFETY ASSESSMENT l' TITLE: ;
Proposed Modification to the Perry Nuclear Power Plant ("PNPP") Unit Number 1, Facility L Operating License NPF-58 to Transfer Operating Authority for the PNPP from The Cleveland l-
" Electric Illuminating Company ("CEICO") and Centerior Service Company (CSC) to a New p' Operating Company, FirstEnergy Nuclear Operating Company (FENOC)
L' ' DESCRIPTION:
This, license amendment application proposes that the PNPP Facility Operating License NPF-58 be amended to transfer operating authority for the PNPP from CEICO and CSC to a new y . operating company, FENOC, and to make other associated administrative changes to the license. Each of these changes is described in furthcr detail below.
. CEICO, the Toledo Edison Company ("TE"), the Ohio Edison Con pany ("OE"), OES L > Nuclear, Inc. ("OES") and the Pennsylvania Power Company ("PP") wholly owned -
L subsidiaries of the FirstEnergy Corp. (FE) (hereinafterjointly referred to as "the Owners") .
g i along with CSC are currently the holders of the License for the PNPP. The License presently -
authorizes CEICO, TE, OE, OES, PP and DL to possess the PNPP as owners, and authorizes
- CEICO and CSC to use and operate the PNPP in accordance with the terms and conditions of
/' . the License. CEICO and CSC are authorized to act for the Owners and presently have l exclusive responsibility and c'ontrol over the operation and maintenance of the facility under L the License.
p
. As explained in more detail below, the Owners will enter into an' amended operating : -'
agreement.which will include FENOC, a wholly owned subsidiary of FE. In accordance with '
m, ,
- the proposed operating agreement amendment, FENOC will assume exclusive responsibility.
I
' for the operation and maintenance of the PNPP following approval of the transfer ofoperating -
p authority requested by this' application. After issuance of a 10 CFR 50.80 transfer order and L conforming license amendment, the Owners will be authorized only to possess the facility and
! ; CSC will be removed entirely from the license. As explained later, this revised operating y arrangement is expected to enhance the already high level of public safety, operational
- efficiency, and cost-effective operations at the PNPP.
E Ownership of the PNPP will not be affected by the proposed transfer ofoperating authority.
Each Owner will retain its current ownership interest, and FENOC will not own any portion of '
the PNPP. Likewise, the Owners' entitlement to capacity and energy from the PNPP will not D .be affected by the proposed transfer of operating responsibility.
- FENOC will be dedicated solely to the operation of FirstEnergy's nuclear plants. Once the transfer has been approved, substantially all personnel of CEICO and CSC who are dedicated l
- to the operation of the PNPP will be transferred to and become employees of FENOC. l
'Iherefore, the technical qualifications of the proposed FENOC organization will be at least i equivalent to those of the existmg orgaruzation.
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L. l p4 ,
[. .
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Attachment 2 PY-CEI/NRR 2292L Page 2 of 6 Besides involving no change in the ownership of the facility, the proposed license amendment involves no physical changes to the plant, no substantive changes to operating procedures, and no changes to the Technical Specifications or Bases.
Once all organizational arrangements are finalized, FENOC will be established as an Ohio Corporation wholly-owned by FirstEnergy Corp. FENOC's sole corporate purpose will be the operation of FirstEnergy nuclear plants on behalf of and for the benefit of their owners. An operating agreement amendment will be executed with the Owners to govern operation of the PNPP by FENOC, and will become effective after receipt of all necessary regulatory agency approvals.
The relationship between the Owners and FENOC will be defined in the proposed operating agreement amendment. This operating agreement will define FENOC's rights, responsibilities, and limitations ofits authority regarding the operation of the PNPP and will state that FENOC has the sole authority, as the operator of the PNPP, to make all decisions within the scope of the Operating License relating to public health and safety. The Owners will continue to provide all funds for the operation, maintenance, and decommissioning by FENOC of the PNPP. The re, possibility of the Owners will include funding for any emergency situations that might arise at the PNPP.
Further, the status of the owners as " electric utilities" under the NRC's financial qualifications requirements of 10 CFR 50.33(f) will be unaffected by this reorganization. Accordingly, there will be no change in the financial qualifications associated with the PNPP.
The proposed amendment would make the following changes to the Operating License:
Revise the heading to add the FirstEnergy Nuclear Operating Company and remove Centerior Service Company.
Revise paragraph 1.A to remove mention of the Cleveland Electric Illuminating Company and Centerior Service Company; add First Energy Nuclear Operating Company (FENOC);
change the word "their" to "its" and " agents" to " agent", add "The Cleveland Electric Illuminating Company"(CEICO) and line 3; and revise footnote No. I to read as follaws:
FENOC is authorized to act as agent for Duquesne Light Company, Ohio Edison Company, OES Nuclear, Inc., Pennsylvania Power Company, The Cleveland Electric illuminating Company, and the Toledo Edison Company and has exclusive responsibility and control over the physical construction, operation, and maintenance of the facility.
Revise paragraph 1.E to replace the reference to "The Cleveland Electric Illuminating Company" with "The FirstEnergy Nuclear Operating Company".
Revise paragraph 2 to remove Centerior Service Company and add FirstEnergy Nuclear Operating Company.
Revise paragraphs 2.B(1),2.B(3),2,B(4),2.B(5), and 2.B(6), to replace references to "The Cleveland Electric Illuminating Company"(CEICO) with "FENOC" and to delete the
Attachment 2 PY-CEI/NRR-2292L Page 3 of 6 obsolete asterisked footnote to paragraph 2.B(1).
- Revise paragraph 2.B(2) to add CEICO.
Revise the first sentence ofparagraph 2.C(l) to replace the reference to "CEICO" with "FENOC".
. Revise the last sentence of paragraph 2.C(2) to replace the reference to " Cleveland --
Electric Illuminating Company" with "FENOC".
4 Revise paragraph 2.C(3)(b) to' replace the ieference to "Centerior Service Company l(CSC)"with "FENOC".
T
- Add a new paragraph 2.C(3)(c) to read:."FENOC shall not market or broker power or, energy from the Perry Nuclear Power Plant, Unit No.1. The Owners are responsible and
' - accountable for the actions of FENOC to the extent that said actions affect the marketing i
or brokering of power or energy from the Perry Nuclear Power Plant, Unit No.1,
-e Delete paragraph 2.C(4). This Licensing Condition dealt with the Post-Fuel Loading Initial -
. Test Program. This initial test program has been completed. As such, there is no longer a need for this License Condition. Therefore,-it is requested as part of this change that the :
p license condition be deleted.-
e 1 Delete paragraph 2.C(5). This Licensing Condition required that CEICO submit the Initial Inservice Inspection Program required by 10 CFR 50.55(a) for the NRC staff's review and approval within 6 months after exceeding 5% of rated thermal power. This license -
condition was satisfied on March 31,1987 when the PNPP Inservice Inspection Program
- Plan was ' submitted to the NRC. By letter dated April 25,1990, the NRC documented their review and acceptance of the initial Inservice Inspection Program Plan for the Perry Nuclear Power Plant, Unit 1. Therefore, this license condition can be deleted.
K -* Revise paragraph 2.C(6) and 2.C (6)(a) to replace two references to "CEICO" with "FENOC.
-*
- Delete paragraph 2.C(7) and Attachment I referenced therein. The license condition required that CEICO implement the Detailed Control Room Design Review activities and co:Tect all human engineering deficienews identified in Attachment I to the Operating -
- License. Attachment I contains a schedule for completion of these items. Startup following the second refueling outage was the latest date given in attachment I fer
- completion of any of the items. Updated Safety Evaluation Report (USAR) Appendix 1.B, Item 8 provides the history of complying with this requirement. Since all items in Appendix 1 to the Operating License have been completed, there is no longer a need to have License Condition 2.C.(7) as part of the license. Therefore, it is requested that both Liv se Condition 2.C.(7) and Attachment I be deleted.
Delete paragraph 2.C(8). This License condition dealt with the Federal Emergency Management Agency's (FEMA) review of procedures in accordance with 44 CFR Part 350.' On June 17,1994, FEM A submitted a letter to the NRC that indicated that the l evaluations in accordance w ith 44 CFR Part 350 had been completed, and that the I
, . . - .~
Att: chm nt2 PY-CEI/NRR-2292L Page 4 of 6 ev.aluation concluded that "the State and local plans and preparedness site-specific to the Perry Nuclear Power Plant are adequate to protect the health and safety of the public living -
' in the vicinity of the site." Therefore, the purpose for the License Condition is no longer required and can be deleted.
- - Revise paragraphs 2.D.,2.E., and 2.F to replace the three references to "CEICO" with "FENOC".
- Delete entirely Attachment 1.
. . Revise the' Appendix A cover page to replace " Cleveland Electric Illuminating Company" with "FirstEnergy Nuclear Operating Company".
e
' Revise the A' ppendix B cover page to replace " Cleveland Electric Illuminating Company" with "FirstEnergy Nuclear Operating Company".
L . -
These proposed changes ~are shown in the attached marked-up copy of the Operating License.
. SYETEMS, COMPONENTS, AND ACTIVITIES AFFECTED: .
The proposed license amendment affects the organization'n al structure of the PNPP with regards to the staffchanging from CEICO and CSC employees to FENOC employees, and FENOC being responsible for the operation and maintenance of the PNPP, instead of CSC and CEICO.'
As discussed above, FENOC will be a wholly owned subsidiary of the FirstEnergy Corp.just .
as CEICO and CSC are presently wholly owned subsidiaries of FirstEnergy Corp..
~ FUNCTIONS OF THE AFFECTED SYSTEMS, COMPONENTS, AND ACTIVITIES:
?
The function of the staff organization of the PNPP is to be fully capable and equipped to handic all situations involving the safety of the facility and the public.
,. EFFECTS ON SAFETY:
g L The employees of CEICO and CSC presen't ly engaged in the operation of the PNPP will
' %y . become employees of FENOC. Personnel qualifications, therefore, will remain the same as f!
those discussed in the Technical Specifications and the USAR. The techni_ cal _ qualifications of
- FENOC to carry out its responsibilities under the Operating License for the PNPP, as
[M amended, will be equivalent to the present qualifications of CEICO and CSC. The . j
$$ ; organizational structure of FENOC will continue to provide for clear management control and j
effective lines of authority and communication among the organizational units involved in the '
management, operation, and technical support of the facility.
kF- LA central objective in planning the proposed trans'fer of employees and operating
- responsibilities from CEICO and CSC to FENOC will be to ensure there is no disruption to the l
- Lperation of the plant, and to respect the integrity of the existing, successful organization.
When the transfer becomes effective, FENOC will operate, manage and maintain th'e PNPP in l
,~ . , -
I.
Attachment 2 ~
PY-CEI/NRR-2292L Page 5 of 6 accordance'with the conditions'and requirements established by the NRC and with the same regard for public and personal safety heretofore exemplified by CEICO and CSC. Therefore, in the proposed FENOC organization, the nuclear organization of the PNPP will be preserved, with the only change being that the senior nuclear executive will report to the Directors of FENOC rather than to the President and Chief Executive Officer of Centerior Service Company. The current PNPP Vice President, Nuclear will become a Vice President of FENOC and will continue to be the officer at the site responsible for the overall safe operation and' maintenance of the PNPP.
De Quality Assurance organization for the plant will also have direct access to the site Vice President FENOC on matters related to quality; therefore, the effectiveness of this organization will not be reduced by the proposed change.
L . The above organizational approach allows the transfer of CEICO and CSC personnel to FENOC with minimal organizational changes and with no anticipated disruption to the
- existing, dedicated site organizations.
! ~
The proposed changes would not involve physical changes to the facility. The proposed l' changes would not involve significant changes in the manner in w'iich the plant is operated, or the technical qualifications of the personnel who operate the plant. There would be no material change in the responsibility for the conduct of operational activities including security, quality -
L . assurance, emergency planning, and training.
l The proposed license amendment will not adversely impact the Owners' ability to obtain or L' . provide the funds necessary to cover all costs for the operation, maintenance, repair, decontamination, and decommissioning of the PNPP. The Owners will remain liable for such costs, on a pro rata basis, under the proposed operating agreement amendment. He Owners' financial responsibility for the PNPP and their sources of funds to support the facility will L' remain the same as under the present License.
E FENOC will be an operating company with no ownership interest in the PNPP. FENOC, under the proposed operating agreement amendment with the Owners, will be authorized to operate the plant 'on behalf of the Owners. Further, as discussed below, the Owners will be committed under the proposed operating agreement amendment to provide all funds necessary for safe operation and decommissioning of the PNPP in conformance with NRC regulations.
L To summarize, the following interrelations will be established by the operating agreement L; amendment between the Owners and FENOC:
(1)" FENOC will not have any ownership interest in the PNPP; however, it will have overall responsibility for the safe operation of the PNPP. FENOC will operate the PNPP in accordance with the Operating License and shall have exclusive responsibility for making safety decisions.
(2) The Owners will retain their curent authority to seview and approve budgets. This will not encumber FENOC's ability to make operational safety decisions and will have no impact on safe operation of the PNPP.
i u
L_ =: - -- . -- - -- -- - - -
Attachment 2 PY-CEl/NRR-2292L Page 6 of 6 (3) . Pursuant to the proposed operating agreement amendment, all costs, including cost:,
for the operation, maintenance, repair, decontamination and decommissioning of the
{
PNPP, incurred or accrued are liabilities of the Owners when incurred or accrued and are borne in proportion to their respective undivided interests in the PNPP, and the l' Owners will commit to provide FENOC funds to pay these costs.
Thus, the sources of funds for operating the PNPP will remain unchanged.
A full financial qualifications review is not necessary as a result of the proposed license amendment. Under the terms of the proposed operating agreement amendment between FENOC and the Owners, all costs associated with operating the PNPP will continue to be borne by the Owners to the same extent as they are now, and accordingly, there will be no change in the financial qualifications associated with the PNPP. Further, the status of the Owners as electric utilities under the NRC's financial qualifications rule will be unaffected by i this reorganization. Therefore, the information required under 10 CFR 50.33(f) regarding the !
financial qualifications of FENOC to carry out the activities described in this application is not i necessary.
The plan for FENOC to operate the PNPP will not affect the existing ownership of the PNPP or existing ownership ofor entitlement to power. FENOC will be solely dedicated to the operation of the PNPP. It will not be involved in the marketing or brokering of power or energy from the facility. To reinforce this aspect of the reorganization, it is proposed that License Condition 2.C(3) be modified, as previously described.
With this condition, the NRC staff has determined that the addition of a new non-owner operator does not require any further antitrust review (see SECY-91-246. Antitrust Consideration for I.icense Amendments Authorizing New Operatina Entities (Aug. 7,1991)). Moreover, the proposal to designate FENOC as the entity authorized to use and operate the PNPP will not alter the existing antitrust License Conditions applicable to the Owners. Those conditions will remain applicable to all Owners. Accordingly, the requested amendments will have no impact whatsoever on the market for electric power and raise no issues with respect to antitrust considerations affecting that market.
The proposed changes are administrative and it is therefore concluded that they would have no j adverse effect on plant safety.
______.________U
Attachm:nt 3 PY-CEI/NRR-2292L Page1ofI l~
SIGNIFICANT HAZARDS CONSIDERATION:
Nuclear Regulatory Commission has provided starbrds in 10 CFR 50.92(c) for determining
. whether a significant hazard exists due to a proposed ame,rAment to an Operating License for a l facility. A proposed amendment invokes no significant hazards cor. sideration if operation of the facility in accordance with the propcsed changes would: (1) Not involve a significant increase in i
the probability or consequences of an accident previously evaluated; (2) Not create the ~
possibility of a new or different kmd of accident from any accident prenously evaluated; ov (3) li Not involve a significant reduction in a margin of safety. The Perry Nuclear Power Plant 1.as reviewed the proposed changes and determined that a significant haards consideration does not exist because operation of the Perry N9 clear Power Plant, Unit No.1, h accordance with taese
!- - changes would:
' l a.
Not involve a significant increase in the probability of an accident previs:dy eva!uated because no accident initiators or assumptions are affected. The proposed changes are L - administrative and have no direct effect on any plant systems. ' All Limiting Conditions
. for Operation, Limiting . Safety System Settings, and Safety Limits specified in the L
Technical Specifications will remain unchanged.
i l
lb. Not involve a significant increase in the consequences of an accident previously evaluated because no accident conditions or assumptions are affected. The proposed L
changes do not alter the source term, containment isolation, or allowable radiological .
consequences. The proposed changes are administrative and have no adverse effect on any plant system.
2.' Not create the possibility of a new or different kind of accident from any accident 'I previously evaluated because no new accident initiators or assumptions are introduced '
by the proposed changes. The proposed changes are administrative and have no direct
!~ effect on any plant systems. The changes do not affect the reactor coolant pressure
' boundary and do not affect any system functional requirements, plant maintenance, or
} operabilityrequirements.'
^
- 3. Not involve a significant reduction in the margin of safety because the proposed changes do not involve new or significant changes to the initial conditions contributing to
. accident severity or consequences. The proposed changes are administrative and have no direct effect en any plant systems.
l: -
CONCLUSION:
g' On the basis of the above, the Perry Nuclear Power Plant has determined that the License 1 Amendment Request does not involve a significant hazards' consideration. As this License
~ ; Amendment Request concerns a proposed change to the Operating License that must be . '!
reviewed by the Nuclear Regulatory Commission, this License Amendment Request does not l
constitute an unreviewed safety question. !
L l.
I a_._____.___ . _ _ _ - . -
.o orou Attachment 4 e*. g% py.CEI/NRR-2292L l I 2 UNITED STATES Page 1 of 9
.y. o NUCLEAR REGULATORY COMMISSION y **, # wemston. o.c. ms+ct:
Fiest EDaleu '
t i
i CLEVELAND C ELECTIIC IttVMINATING COMPANY rrdM W Vik wevm%
DM@ESNE LIGHT COMMNY O ccAhh bf 8 9 Dli10 EDISnN COMPANY DES NUCLEAR. INC2 EINNSYLVANIA POWER COMPANY i
JDLEDO EDISON COMPANY DOCKET No. 50-440 EERRY NUCtEAR POWER ptANT. UNIT NO. I F EACILITY OPERATING LICENSF j.nj Cechte , ,
m" IIL*'m. d$3 1
- 1. NPF-58 The Nuclear Regulatory Commission (the ommission) has found thate A.#Thn=nalienHnn(n}rcensejiled Il4#a?Hac rpy G u p"tM01'!:!r.Tu;;tf m u Nutsan O '
Us'{
Ph>and i
~
s r Mr Cet;;ra actingEonq!
Own behal E ison Company,f and as agenti fop 4Duquesne&O Light company OES Nuclear Inc.
the Tolsda Edison Company iicense. Pennsylvania Power company,, and Ohio I
- the Commission's regulations set forth i and all re c and i
,.: made; quired notifications to other agencies or bodies -
', B.
j
! Construction of the Perry Nuclear Power Plant, Unit No facility) has been substantially completed in conformity w(th . 1 the Construction Permit No. CPPR-148 and the application :
provisiens of the Act, and the regulations , as amended, of the Commission: the
- Fwo c. is au.
f (?pe dison Compan%ekt -tu a.ek a s bu .
j Z asive g of.S Nute.c m ca.nv and Th. Cu,valed Clecu Inc.agh<&
3 6ewsgivanduan w J-ll urn %s. La M .
i retpoAsib il% a.J contwi evsW prual coa %a.W in y 'TT S, / **u.To f4 {
(bui.n of whicleveland authoriz are Electric illuminating Compa v ;Edertor subsidia enteri Md ser
- o vice com QdW Sa u n A!;
Nuclear,ed Inc.to act as agents for t Company,or Energy Corporation)panyb(n exclusive res, Penns 1 ower Company Ohio Edison Company, OES 1 )
and mal ty facility.
and control over, anthe physi' cal cons Edison Company and have .
1 nce of the A1 ee by Amendment No. 36. Centerior Service Company was a oeeration a
~
1 2
! OES Nuclear Inc OES Nuclear, Inc. ow,ns ortion ofathe p. is aintere wholly owned subsidiary of Ohio Ediso Unit No. I attributable to Ohio30% Edison company.st in Perry Nuclear Powe fully responsible relating for all costs andOhio expenses, Edison Company including n ng expenses, remains decom Nuclear, to the portion of the Perry Nuclear Power Plant Unit decommissioning Inc.
to this license for the duration of the license through completion ant of pl OES Huclear, Inc. was added as a licensee .by 81 Amendment H J
Amendment No. 81 l
Attachment 4 PY-CEl/NRR-2292L Page 2 of 9 n ,
- c. The facility will operate in conformity with the, asapplication amended, the provisions of the Act, and the regulations of the ~ g D; -Commission (except as exempted from compliance .
(
There it' reasonable assurance:
~
and safety of the publicthis operating license can be c and (ii) that such activities will bee health j conducted in compliance w,ith the
^10 CFR Chapter I (except as exempted from compliance in S Commission's regul on 2.0 E.
m C1-w=1H to engage RestGe[*P Eh:tt --M.:.,ttOMD t n the activities author' red w" ' s technically qualifi ed
>y this license in accordan F. with the Commission's regulations set forth ince10 CFR C The licensees have satisfied thePartapplicab the Commission's regulations; G.
The issdance defense and security of this license or to the health willand notmon be inimical safety of the pub to H.
After Weighing the environmental, economic technical a d n other and other w-f j benefits of the facility against environmen,tal '
co considering available alternatives, the issuance s and of this Facil Operating Licensa No..NPF-58, sub.iect to protection they conditions for attached as Appendix B, is in accordance w Commission's satisfiad; and regulations and all applicable requireme t of the n s have been ~
- 1. ,
The receipt, possession, and use of source, byproduct nuclear material as authorized by this license a will be in ac
- 2. with the Commission's regulations in 10 CFR Parts 30 40 ,
Based on the foregoing findings r , 198 the Part regarding Rest Wucleae this Atomic dated ALAB-841 Safety July 25and Licensing Board in regard to this facilit by the 1986 y affirmed by m nN Regulatory Comissione a,t a m)eting on 1986 November 7and pursuant to ap e Nuclear License Noi NPF-58 which supersedes the license,for fu, F 111ty power testing, l. ice,nse No. NPF-45 loading and low issued on March 18 6, is hereby i""*4 renns to the Cleveland Electric quesne Light Company,.0hio Edison Company ,
illuminating .
Company,C52 read as ylvania follows: Power Company and Toledo the licensees Edison Company, l
-A.
boiling water nuclea'r reactoreand ,a associate facility) owned by the Cleveland Electric Illuminating Company Amendment No. 81 i l
u_'_1__ ____u__, _ _ _ _ _ _ . _ ]
b
, Attachment 4 PY-CEl/NRR-2292L
- .y ' Page 3 of 9
_3 Company L
L Company,and the Toledo Edison, Company. Ohio Ediso i shore of Lake Erie in Lake County, Ohio The facility is located on the ap>roximately 35 miles safety Ana
/
- t. licensees' lysis' Report, as su,pplemented a B.
Environmental Report, as supplemented and amended. l Commission herehv licenses: Subject to the ,conditions
~
' the and (1). H Ok;12: - FsN W i-h l
- ection 103 of the Act and lo C1 Part , use 50, to po]s and operate County Ohio the facility at.the designated location.in Lake l in accordance set for,th in,this license; with the procedures and limitations
.ON) -
(2) uguesne Light Company Ohio Edison Company DES Nuclear, Inc l
the facility.at the designated location
. 0hio, in s in La accordance 1 frone ; with the procedures and limitations set forth in (3)
- ursuant to the Act and 10 CFR Partto70 receive !
fuel, in accordance with the limitations for required Aa*1== for reactor s Report, operation, as supplemented as described in the and amended s
Fin N d O C.
(4)' fMe ursuant t rece ve, possess,o the Act and 10 CFR Parts 30, 40 and 70, to and use at any time any byproduct special nuclear material such as sealed neutron source and-sour,ces for \ i M
reactor startup, sealed sources for reactor instrumentation i radiation monitoring Pa s in amounts equipment calibration, and as fission as required; I
i c
(5) .
L ursuant to the Act and 10 CFR Parts 30, 40 and 70, to L . receive, possess and use in amounts as required any by chemical or physical form, for sample analy calibration or associated with radioactive apparatus or
~
ts; and
_(6) .
ursuant to the Act and 10 CFR Parts 40 and30 70 to materials as may bo produced by the ope .
(7)(a)~ Ohio Edison Company is authorizedontoof transfer any s
Th OdCG g cu . v...L..D
~ wur u w Cuni.erior 5cr vice t.omp
~
Amendment No. 81
l Attachment 4 PY-CEl/NRR-2292L
-v- ,
Page 4 of 9 its 30.0% ownership share of PNPP Unit onate I and a! proporti equity investors 1987, as supplemented on Marchidentiflod 3 in its an submissio PNPP Unit 1 facility.to lease back ourchaser,s such from such s ld i1987, and at interest o
approximately 29-1 n the Tae term of the lease is for Such sale and lease /2 years subject to a right of renewal.
back transactions are' subject to the representations mentioned and conditions set forth in the above application of January 23,1987 March 3 Office o,f Nuclear Reactor Regulation consenting to such transactions. , 1987 dated Ma transactions are prohibited from exercising dir indirectly any control over the licensesyof or PNPP purposes of this condition the limitations Unit 1. of For 10,CFR 50 81
.lessor applicable to the lessor and any succes as long as the license for PNPP Unit I remains inshall have no effec effect; the licensethese for. financial transar.tlons s
of the license. the Perry Nuclear facility throughout the term (b) writing, prior to any change in:Further of any lease a 1 e NRC in the licensees ar transactions; (ii greements executed a(s)part of thesethe terms or cond exist 6 the PNPP Operating Agreement:
9 property) insurance ccverage (iv) ay action by a lessor or others that may, h (iii) the for PHPP U C. effect on,the safe operation of the facility. ave an adverse This license conditions shallinbe specified thedeemed to tocontain subject Commission's the regulations and is CFR Chapter I and is subject to all set applicable forth in 10 provi i hereafter in effectand to the rules,s ons regulations, of the Act and orders of specified or incorpo; rated below:and is subject s on tonowtheor additional conditions (1) ximum power t evel.
[NRa@rhed to operate the fuWty M routo PMrer levels not .in excess of 3579 megawatts r core thermal (2)-
power) 4. occordance with the conditions specified he(100%
Technical Spetyicatinns rein.
The Technical Specifications contained in Appendi i
Environmental Protection Plan contained x A nd the in Appe di n x 3, as revised through Amendment No. 81 are o hereby incorpor Amendment No. 81
l L
Attachment 4 s- PY-CEI/NRR-2292L
\ Page 5 of 9
' V$90 %
l tne license. Dele..d Ek;tik Il .....,.r.;.tk.;
operate the facility in accordance with the TecI[f5$ & i shall Specifications and the Environmental Protection Plan .
(3) Antitrust Conditions a.
Company, Ohio Edison CompanyCleveland Elec OES Nuclear, Inc.
shall comply with the antitrust conditio Appendix incorporated Cinto to this license; Appendix C is hereby this license, b bantitrust r.^.g condit'ons ur n rd delinea e r - "' m b shall comply with th license as if named therei pendix C to this accountable for the actions o '"" is responsible and v o the extent that 's the an g{ Appendix C to this license. actions contravene
[(4)pPost-Fuel Loadina Initial Test Proaram (Section 14
. SSER d!3#' !
- OdM 7 , of the ISAR made in accordance witfi theAny n Section 14 ch 50.59 shall be reported in accordan sions of 10 CFR 4
.{ month of such change.
th 50.59(b) within one (5) Inservice Insoectio Within si oram (Section 6.6.3. SSER #71 ,
CEIC l all submit themonths after exceeding 5% of rated therm utred b approval. y 10 CFR 50.55( tial Inservice Inspection Program of the NRC staff's review and (6)
~
Fire Protection (Section 9.5. SER.. SSER 4. 7 and #1.
- 8) 2. 3 ITiiR N hall comply wil the following ptgot rotectionprogram:ll requirements of the fire e ect all provtstons o all implement and maintain in i
described in the Final Safety Analysis Report as amendei L
, for i the Perry Evaluation Nuclear Report Power NUREG-0887 Plant and as approved in th '
Nos. I thru 10 ther(eto, subjec)t to the fn110 wi a.
OE;CL ay make changes to the approved fire protection I'
' The parenthetical notation following the title wherein the license condition is ofdiscussed. many license conditions denotes ! th
)
Amendment No. 81 i
I
Attachment 4 PY-CEl/NRR-2292L Page 6 of 9
. INSERT 1:
- c. FENOC shall not market or broker power or energy from the Perry Nuclear Power Plant, Unit No.1; The Owners are responsible and accountable for the actions of FENOC to the extent that said actions affect the marketing or brokering ofpower or energy from the Perry
- Nuclear Power Plant, Unit No.1.
t C.- . -_ _ ._. l
I
" i Attachment 4 PY-CE1/NRR-2292L
- g. Page 7 0f 9
/ i I-program without prior approval of the Commission only'if those changes would not adversely affect the ability to pr achieve and maintain safe shutdown in the event of a fire,-
(
Detailed Control Room Desion Review (Se .-SSER #10)
'CEICO tha t
^" Detailed Cont ining activities to complete the 3ddJ .
engin screpancies c .unt i is nereby inco(NED view and correct all human rporased into ed in Attachment 1. /
'( (8) y planrAna fspetion 13.3. ESER #10) j s
In the av completion of the proce C finds th that the progress in ADency's final rule (44 CFR ral Emergency Management.
A substantive problem indicates that a major adequate sta n achieving ntaining an 4 rgency !
CFR 5 (2) will apply. preparedness, th isions of 10 (9)
Deleted (10)
.e s CORE ALTERATIONS and movement *of ir primary containment, except when moving recently irradiate (i.e., fuel that has occupiid part of a critien1 reactor core within conditions the previous seven days), provided the following exist:
L
- One door in each ' air. lock is capable of being closed.
=atHoses and cables running through the a the air lock with specific instructions to expedite removal.
- be The expeditiously air lock closed.
door is not blocked in su:h t way that it cannot g
i
- the A designated air lock door. individual is available to apeditiously close r
i
. 1 l
Amendment No. 81
Attachment 4 PY-CEl/NRR-2292L Page 8 of 9
.e r"y ,
qg
' ~l~
D.I h s exempted from:
- 1) the requirements of Section l M. 2(b)(ti), containment' airlock testing requirem Section 6.2.6 of SER Supto 10 CFR Part 50, due to tha spe 50.12 Partic(a)(2)(111); and 2)plement No. 7 authorized by 10 CFR the requirements of Section IV.F.
Full ipation Exercise, of Appendix E to 10 CFR Part 50, du,e special circumstance described in the Exemption, dated Nove 1986.
. These exemptions are authorized by law, will not presen undue risk to the pubite health and safety and are consist common defense and security.
The exemptions are hereby granted pursuant.to facility 10 CFk 50.12. ' With the granting of these exemptio will operata the with ndthe application,,as regulations of the Commission. amended, the provisions o E.
hall fully implement and maintain in effect all provisions ission-approved physical security guard training and made pursuant to provisions of the Miscellan Requiresients the authority of 10 CFR revisions 50.90 andto1010 CFR CFR 50.5473.55 and (51to FR earch 27817 contain Safeguards Information protected under(p). The plans which entitled: 10 CFR 73.21, a,re e revisions submitted through September" Perry Nuclear Power "
Plant August through Guard 12 Training 1986; and Qualification Plan " w;ith revisions and " Perry Nuclear, Power Plantuards Safegsubmitted contingency Plan",(Chapter submitted through May 15 1986 8 of the Security. Plan), with re CFRtherein.
forth 73.55 shall be implem,ented in accordance e u e set with the sch F.
.Except as otherwise provided i FENoc.
Environmental. Protection Plan, ical Specifications or the requirements shall report any violations of following manner: contained in Sec on 2.0 of this to the with NRC written Operations followup within thirt Center via the Emergency em Notifica
- procedures described in 10 CFR 50.y (30) days in accordance with the G.
73(b),(c)and(e). '
The licensees shall have and maintain financial protection o type and in such amounts as the commission such shall require i
- cover.
with public Section 170 liability of the Atomic Energy Actordance claims. of 1954, as ame j
l Amendment No. 81
_ - - _ - J
Auochment 4
- PY.CEl/NRR-2292L Page 9 of 9 d
ATTACHMENT _1 TO HPF-S_
DETAILED CONTROL ROOM DESIGH REVIEW .
efore sta t of the 100-hour warranty run, CEI shall imple to human en Detailed Cont neering discrepancies per comitments in Supplement 2 m
. in a letter fr 1 Room Desi n Review Sumary Report, o thedated May 28 Before startup fo M. R. Ede man to W R. Butler, dated 986 August 26 1 corrections to hun ing the first refueling outage CET sha engineering discrepancies per c,omitme s inimplement (a) the Detailed
,lanuary 10,19 .ntrol Room Design Review Suiiner Report, dated (b) Supplement 1 to th Report, dated Octobe Detailed' 14, 1985. Control Room esign Review Summary
[' (c)
Revision 1 to Supplemen 1 to the Det ,
Review sumary Report, da led control Room Design d October 21,1985.
(d)
' ' Report, dated MaySupplement 2 to the 28,1986. Detailed 'onL ;
l- '(e) umary -
n
" The control Room Validation ma (f) Report, dated July 11,1986 Errata sheets to suppleme 2 to the Sumary 1986 Report, attached o Letter PY. -1/NRR-0510 Letaile L
, dated July 29, i i
(g) Detailed control Ro Report Design Review - Mrst 1989. , attached t letter PY-CEI/NRR-0946L, efuel HED Revisions I j
h ted February 10, Before startup followin i 4
- results of the final s down facilities for nd survtys in the control ro,om and e atthe first
\
' Detailed Control Ro review per the comitment in su he remote shut- i Design Review Sumary Report, dat 1ement to the j l
!, ) Before startup f October 4,1905. 1 f
augmented mented after lowing verif the second cation of human refueling outage CEI engineering shall ccm discrepan,cy Detailed to 01 Room Design Rev ons i
' CEI shall ew Sumary so correct an Report 11-power licensina e per the c before st , dated May 28 1986. i letter i om tup following'y M. R. Edelman to V.problems R. Butler, dated identified August 2'6, 1986 by the augm ;
, i L 7 Amendinent No. 23
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