ML20246E656

Application for Amend to CP CPPR-119,designating Entergy Operations,Inc as Operator of Facility.Background & Technical Justification to Support Requested Amend & marked-up Amends to CP Encl

ML20246E656
Person / Time
Site:	Grand Gulf
Issue date:	08/21/1989
From:	Blount J SYSTEM ENERGY RESOURCES, INC.
To:
Shared Package
ML20246E647	List: ML20246E642 ML20246E656
References
NUDOCS 8908290245
Download: ML20246E656 (26)

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UNITED STATES OF AMERICA k NUCLEAR REGULATORY COMMISSION In the Matter of.

15YSTEM ENERGY: RESOURCES, INC. ) Docket No. 50-417-

. SOUTH MISSISSIPPI ' ELECTRIC POWER ' )

ASSOCIATION ) '

MISSISSIPPI POWER'& LIGHT' COMPANY )

(Grand Gulf Nuclear' Station,~ Unit 2)

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APPLICATION TO AMEND CONSTRUCTION 4

FERRTT NU- UFFRTTIV System Energy Resources, Inc., (" System Energy").. South Mississippi Electric Power Association ("SMEPA") and Mississippi Power & Light Company ("MPSL") (collectively " Joint Licensees")

are the '>lders of Construction Permit No. CPPR-119 for Grand Gulf: Nuclear Station (" Grand Gulf") Unit 2. 1/ The construction permit presently authorizes System Energy for itself and as agent for SMEPA to construct Grand Gulf Unit 2 in accordance with the terms and conditions of'the construction permit.

System Energy is a wholly-owned subsidiary of Entergy Corporation ("Entergy"). Entergy also owns the common stock of MP&L.

8908290245 890821 I PDR ADOCK 05000417 A PDC 1/ Timely applications to amend the expiration date of the  ;

permit have been made, the most recent of which is undergoing

.NRC review. Pursuant to 10 C.F.R <2.109, the permit thus remains in effect pending completion of this NRC review.

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MP&L-was or.iginally granted a construction permit for Grand

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', Gulf:UnitL2 prior to. transfer of such. rights 1to System. Energy in 1986 and remains subject, along with System Energy, to the antitrust conditions of Construction Permit No. CPPR-119._

Entergy now plans for a new company to be called Entergy Operations, Inc. ("E01") to become.its system-wide nuclear operating company. On August.15, 1989, Joint Licensees filed an application:with the NRC to amend the Operating License No. NPF-29 for Grand Gulf Unit I to substitute E01 as the licensee authorized to possess, use and operate Grand Gulf Unit 1. In addition, Arkansas Power & Light Company (AP&L) and Louisiana Power & Light z

' Company (LP&L).sub.nitted proposed license amendments on August 15, 1989 with the NRC to designate E01 as the. licensed operator for Arkansas Nuclear.0ne (ANO) Units 1 and 2 and Waterford Steam-Electric Station, Unit 3 (Waterford 3), respectively. These submittals by AP&L.and LP&L supplemented their previous license anendment applications filed on July 1, 1988 which had sought to designate System Energy as the licensed operator for ANO Units 1 and 2 and Waterford 3.

Uoon receipt of necessary regulatory approvals and transfer to E01 of System Energy personnel, E01 will succeed System Energy I

as the entity responsible for Grand Gulf Unit 2 under the construction permit. This amendment application requests that the NRC amend Construction Permit No. CPPR-119 to ,

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'7 substitute E01 for System Energy asuthe licensee: authorized to construct 1 Grand. Gulf Unit ~2. 2/

Ownership of. Grand Gulf Unit 2 will remain unchanged with SMEPA retaining its ten percent undivided ownershio interest and System Energy' retaining its ninety percent' ownership and. leasehold interests.

Specifica.11y, pursuant to 10 C.F.R. 9 50.90, the Joint Licensees hereby request that the NRC amend Construction Permit No. CPPR-119 to substitute E01 for System Energy as constructor of Grand Gulf' Unit 2 , such ' hat:

Pursuant to section 103 of the Atomic Energy Act of 1954, as amended, ("the Act") and 10 C.F.R. Part 50 " Domestic Licensing of Production and Utilization Facilities," E01 is authorized to construct; and E01, System Energy and SMEPA are licensed to possess Grand Gulf Unit 2 at the designated location in Claiborne County, Mississippi, in accordance with the, procedures and limitations set forth in the construction permit.

Set forth be'ow is the information in support of the

' Application to amend Construction Permit No. CPPR-119,

-2/ The proposed changes to the Grand Gulf Unit 2 construction permit to reflect the establishment of E01 as licensee L

responsible for the construction of Grand Gulf Unit 2 are included in Attachment 1.

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I.- GENERAL INFORMATION CONCERNING CONSTRUCTION PERMIT AMENDMENT F

A. Proposed Additional' Licensee:

Entergy10perations, Inc.

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, Echelon One I: 1340' Echelon. Parkway

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Jackson, MS 39213 C. Description of Business or Occupation Prior to issuance of this construction permit amendment, E01

. will be organized as.a wholly-owned subsidiary.of Entergy and will takefnecessary corporate. action to authorize it to assume responsibility for Grand Gulf Unit 2.

After approval of this requested amendment and an' amendment

'to the-Operating License for Grand Gulf Unit 1 and other

.necessary regulatory approvals, E01 will be responsible for the operation and maintenance of Grand Gulf Unit 1 and will have responsibility for Grand Gulf Unit 2.

D. Organization and Management of Operatin2 Corporation E01 is a corporation'to.be organized and existing under the laws of the state of Delaware. Its principal office will be

located-in Jackson, Mississippi. The corporation will be neither owned, controlled nor dominated by an alien, a foreign corporation, nor a foreign government.

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All prospective directors andLprincipal: officers'of E01'are citizens?of theLunited States. Their names and addresses are-as follows:: 3/

Directors Mr. Edwin A. Lupberger Chairman'of-the Board-Entergy Operations, Inc.

P. O. Box 61005 Newl0rleans~, LA 70161 Mr. William Cavanaugh, III President & Chief Executive.0fficer

.Entergy.0perations, Inc.

P. O. Box 31995 Jackson, MS 39286-1995 Mr. James M. Cain Chairman and Chief Executive Officer Louisiana' Power & Light Company P. O. Box 60340 New Orleans, LA 70160 Or. Joseph M. Hendrie

' Nuclear Engineering Consultant 50 Be11 port Lane Bellport, NY 11713-Senior Scientist; Research and Development Brookhaven-National Laboratory Mr. Jerry L. Maulden Chairman and Chief Executive Officer Arkansas Power & Light Company P. O. Box'551 Little Rock, AR 72203

-3/-' Additional directors and officers may be named at a later date.

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t Upon iss'uance of.the: construction permit amendment, it is

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anticipated;that all officers offSystem Energy'will'become tofficers'of.EDI and certain officers of AP&L and LP&L will become officers of' E01.

E. Technical Qualifications

.The technical qualifications of E0I to carry out its responsibilities under the construction permit for Grand Gulf Unit 2,.as. amended, will meet or exceed the~present technical qualifications of System Energy. System Energy will continue to act asEthe constructor of Grand Gulf Unit 2, pending issuance of the proposed amendment of the construction permit. When the-l amendment becomes-effective,LE01 will assume responsibility for, and control over, the.. physical construction and-any necessary maintenance.or support of Grand Gulf Unit 2. The'present System Energy organizations and personnel responsible for Grand Gulf Unit

' 2 will be transferred essentially intact'to E01. The technical qualifications of the proposed Grand Gulf Unit 2 organization, j therefore. will be'at least equivalent to those of the existing

j. ' organization.-

l Entergy has expended substantial effort in planning a

! ' consolidated organization for operation and construction of its nuclear units. E01 has now been designated as the organization to

. fulfill that. role. A central objective in planning the proposed consolidation and the transfer of employees and responsibilities from System Energy to E01 has been to minimize disruption to the NLSMISC89070705 - 7

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i operation of.the plants and to respect the! integrity ofLthe existing,. successful organizations. There will be no change in the~ people responsible for Grand Gulf Unit 2 as a result of the change. Therefore, in the proposed E01 organization, the nuclear organizations of System Energy, AP&L and LP&L will be preserved with the only change that the senior nuclear executive from System Energy../P&L and LP&L will report directly to the Executive Vice President and Chief Operating Officer who reports to the President and Chief Executive Officer of E01. Thus, for Grand Gulf Unit 2, T. H. Cloninger, Vice President - Engineering & Support, will report directly to the Executive Vice President and Chief Operating Officer of E01. The Quality Programs Department for the plant will also have direct access to both the Executive Vice

, President and Chief Operating Officer and the President and Chief Executive Officer of E01 on matters related to quality.

This organizational approach accommodates the current plant-specific structure of the System Energy organization. This allows the transfer of System Energy nuclear personnel to E0? with

. virtually no organizational changes or disruption.

The significant elements and advantages to the proposed E01 organization can be summarized as follows:

(1) The structure provides clear lines of authority and responsibility while ensuring that essential nuclear support functions are dedicated to each project and report to a single responsible project executive.

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(2) The effect'iveness of project quality assurance will not be degraded.

(3): The1 project structure will continue to provide'the project executive the flexibility necessary-for. managing his resources to achieve optimal results.

L (4) ~The project structure provides the flexibility necessary to adapt to different procedures and methods used at each plant. This is particularly important initially, since most project nuclear activities will be transferred essentially "as is" to E01.

(5) The effectiveness of dedicated nuclear support and construction support organizations is enhanced by identity with and sharing of the E0I goals and objectives.

F. Statement of Purposes for Which Transfer is Reguested The assumption of responsibility for Grand Gulf Unit 2 by E01 (along-with assumption of operational responsibility for the other nuclear plants.within the Middle South Electric System) will provide benefits inherent to an integrated nuclear management company. Some of the expected benefits are as follows:

i (1) E01, as an operating company for multiple reactors, will have a repository'of system nuclear operating expertise NLSMISC89070705 - 9

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and experience. Presently, there is a' wealth of nuclear. i L

operations; talent spread throughout the Middle South

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-Electric System. Consolidation of.this talent into one -

company should have a synergistic effect. .The change.

'should enhance the already high level of'public safety 1 and: cost-effective operations.

(2) C'nsolidation o of talent'not only will result in a merger of expertise and experience for system-wide nuclear operations support, but also will permit'the specialization of expertise in.certain' areas ~that might not otherwise be developed if each of the companies continued to operate and construct their separate facilities.

(3) E01 will be better able to provide a consistent vision for the philosophy of operation and construction of the system nuclear units. A company responsible for nuclear operations and construction in the Middle South Electric System will allow development of a. consistent philosophy which will be specifically designed for nuclear plant operations and construction. This focused philosophy

.can be used to maintain excellence in all aspects of nuclear operation and construction.

(4) As a result of the consolidation, there will be more effective communication and use of system nuclear operating and construction experience. For example, the

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.. system-wide' nuclear-operating company will allow.

" lessons learned" to be shared promptly, efficiently, and consistently among the units.

'(5) Certain non-nuclear support functions will become specialized and focused en the requirements of the system's nuclear units and will thereby be more effective.

r-(6) Bringing the nuclear units in the system under the management of one company will provide a broader base-and more competitive environment for upper management candidates _who are specialized in nuclear power generation. Further, E01, in its role as a system-wide management company,.should provide an environment in which all employees continue to be motivated toward high perfo'rmance. E01, with its expanded responsibilities, will also provide greater opportunity for career progression and thus greater opportunity to retain valued employees. More specifically, as a result of this consolidation, salary structures, career path i

policies and human resource procedures will be r

consistent at each nuclear facility operated and constructed by E01.

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G. Financial Considerat' ions I

- E01 will be an . operating company: with no ownership interest l

in Grand Gulf Unit 2. E01, under an operating agreement with System Energy,,will be authorized to construct the plant as the .

' agent of System Energy and SMEPA. (Under existing contractual

-agreements between System Energy and SMEPA, System Energy has been designated the agent of-SMEPA.) The-contractual agreement between

System Energy and SMEPA, as co-owners, regarding the allocation of I all costs'for the design, construction, and related fuel cycle of Grand Gulf Unit 2 will not be altered by the issuance of the requested amendment to the Grand Gulf Unit 2 construction permit.

Accordingly, under 10 C.F.R. S 50.33(f), a full financial qualifications review of either E01.or the co-owners is not necessary as a result of the proposed construction permit amendment because their financial capability to construct Grand Gulf Unit 2 will be unchanged.

H. Antitrust Considerations The plan for E01 to construct Grand Gulf Unit 2 will not impact the existing ownership of Grand Gulf Unit 2 or existing entitlement to power, and does not involve any significant changes in competitive conditions related to proposed activities under the license. Further, the proposed construction permit amendment to designate E0I as the entity authorized to construct Grand Gulf Unit 2 will not alter the existing antitrust license NLSMISC89070705 - 12

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conditions applicable to MP&L and System Energy. Those conditions' will remain applicable to MP&L and System Energy pending NRC actionLon anl unrelated license amendment request. Accordingly, MP&L and System Energy will remain as licensees on Construction

' Permit No. CPPR-119 until resolution of that unrelated license amendment request. Therefore, this praposed construction permit amendment does not require statutory an'.itrust review pursuant to  ;

Section 105 of the Atomic Energy Act and 10 C.F.R. s 2.101(e),

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1. Restricted _ Data This Application does not contain any Restricted Data or other 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.

E01 agrees that it will appropriately safeguard such information and it will not permit any individual to have 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 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 defense and security.

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Lo I I I '. - ' ENDORSEMENTS AND C0'NSENT 1

A. ENDORSEMENT ND' CONSENT 'MP&L L

'MP&L,. presently a co-licensee, hereby. endorses and. consents i to.'this application' filed under oath or affirmation by

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and the proposed

' assumption of construction responsibilities- for, Grand Gulf Unit 2 by EDI as-described.above.

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System Energy,' presently-.a co-licensee,~hereby endorses andf

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. consents 1toithis application filed under. oath or affirmation'by

-W. T. ,Cottle, Vice

Preside'nt, Nuclear Operations' o f. .. System Energy

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, ,anci -the. proposed assumption- of construction responsibilities' for Grand Gulf Unit 2,by E01 as-' described above.

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2 C. ENDORSEMENT AND CONSENT _- SMEPA ll i r.

SMEPA, presently aLco-licensee,.hereby endorses-and consents to'this application filed under. oath.or affirmation by (Later)- _ _,

and the proposed assumption of construction responsibilities for Grand Gulf Unit'2~

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'by E01 as described above.

(Later)

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' SOUTH MISSISSIPPI ELECTRIC POWER ASSOCIATION DOCKET NO. 50-417 I GRAND GULF NUCLEAR STATION, UNIT 2 CONSTRUCTION PERMIT f J

Construction Permit No. CPPR-119

1. The Atomic Energy Consnission (the Commission) having found that:

A. The application for construction permit complies with the requirements of the Atomic Energy Act of 1954, as amended, and the rules and regulations of the Commission, there is reasonable .

assurance that the activities authorized by the permit will be i conducted in compliance with the rules and regulations of the Commission, and all required nottffcations to other agencies or jogeshavebeen,dulymade; , , ,ggggg,g opg g 7,pgg,,pe, m . v , n_.

B. ", ;i;;i;; g*:a i r Li;5: C: ;:wacting.for itself and as an agent

[yg/cm6r o. . "' dd'; S. t.' Pe r;., , ::: . ::: South Mississippi Electric Power gp , Association (the applicants or ifc,ensees), has described the proposed design'of the Grand Gulf Nuclear Station, Unit 2 (the Oy facility), including, but not limitad to, the principal architectural and engineering criteria for the design and has identified the major features or components incorporated therein for the protection of the health and safety of the public; C. Such further technical or design information as may be required to complete the safety analysis, and which can reasonably be left for later consideration, will be supplied in the final safety analysis report; D. Safety features or components, if any, which require research and development have been described by the appl.icants and the applicants have identified, and there will be conducted, a research and development program reasonably designed to resolve any safety questions associated with such features or components; E. On the basis of the foregoing, there is reasonable assurance that (1) such safety questions will be satisfactorily resolved at or before the latest date stated in the application for completion of construction of the proposed facility and (ii) taking into consideration the site criteria contained in 10 CFR Part 100, the proposed facility can be constructed and operated at the prepcsed location without undue risk to the health and safety of the public;

? % Ener- LG. E0%Afd 0PEAMtodS, INC-F. "f,;;i;;';;f ';n Ktwerew ur  %"r;r.,,(is L';h: technically qualified to design and construct the proposed facility; G. The applicants are financially qualified to design and construct the proposed facility;

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H. The. issuance of a permit for the construction of the facility will not be inimical to the comon defense and security or to the health j and safety of the public; and .

I. ' After weighing the environmental, economic, technical, and other benefits of the facility against environmental and other costs and considering available alternatives, the issuance of a construction pemit (subject to the conditions for protection of the en_vironment set forth herein) is in accordance with 10 CFR Part ... m..-.- .,G of the Comission's regulations and all applicable requirements of P + 6*L C have been satisfied.

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2. Pursuant to Section 103 of the Atomic Energy Act of 1954, as amended (the Act)~, and Title 10, Chapter I, Code of Federal Regulations, Part 50,

" Licensing of Production and Utilization Facilities," and pursuant to the Initial Decision of. the Atomic Safety and Licensing Board, dated August

.30, 1974, the Atomic Energy Comission (the Comission) hereby issues a construction permit to the applicants for a utilization facility designed to operate at 3833 megawatts thermal as described in the application and amendments thereto (the application) filed in this matter by the applicants and as more fully described in the evidence received at the public hearing upon that application. The facility, known as the Grand Gulf Nuclear Station, Unit 2, will be located on the site of Middle South-Energy. Inc., in Claiborne County, Mississippi.

3. This permit shall be deemed to contain and be subject to the conditions specified. in Sections 50.54 and 50.55 of said re all applicable provisions of the Act, and rules,gulations; is and regulations, subject to orders of the Comission now or hereafter in effect; and is subject to the conditions specified or incorporated below:

A. The earliest date for the completion of the facility is April 1, 1983, and the latest date for completion is October 1,1984

. 8. The facility shall be constructed and located at the site as '

-r described in the application, on the east bank of the Mississippi  ;

River approximately 25 miles south of Vicksburg in Claiborne County,  !

Mississippi.

C. This construction permit authorizes the applicants.to construct the facility described in the application and the hearing record, in accordance with the principal architectural and engineering criteria l and environmental protection comitments set forth therein.

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m 7-* / ; :: the following antitrust conditions:

1. As used herein:

(a) " Western Mississippi Area" means the counties of Walthall, Lawrence, Jefferson Davis, Covington, Simpson, Smith, Scott, Leake, Attala, Choctaw Montgomery, Grenada, Yalobusha, Panola, Tate, DeSoto, Pike, Amite, Wilkinson, Adams, Franklin, Lincoln, Copiah, Jefferson, Claiborne. Hinds, Rankin, Madison, Yazoo, Warren, Issaouena. Sharkey, Humphreys. Holmes, Carroll, J12M:5C35CE:7:2 -  !

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W Leflore, Sunflower, Washington, . Bolivar.- Tallahatchie, Quitman, Coahoma, and Tunica. . An r.ntity shell. be deemed to be in thel

" Western Mississippi Area" if it has electric power generation, transmission, or distribution facilities located in whole or in

'part _in the above-described area.

(b) " Bulk Power" means' the electric power, and any attendant energy, supplied or made available at transmission or subtransmission voltage by one entity to another.-

(c) " Entity" means a person, a private or public corporation, a municipality, a cooperative, an association,.a joint stock association or business. trust owning, operating or proposing to own or operate equipment or facilities for the generation, transmission or distribution of electricity, provided that, except for municipalities or rural electric cooperatives, " entity" is restricted to those which are or will be public utilities under the laws of the state in which the entity transacts or will transact business 'or under the Federal Power Act, and are or will be providing electric service under, a contract or rate schedule on file with and subject to the regulation of a state regulatory comission or the Federal Power Comission.

(d) " Cost" means any operating and maintenance expenses involved together with any ownership costs which are reasonably allocable to the transaction consistent with power pooling practices (where applicable). - No value shall be included for.

loss of revenues from sale of power at wholesale or retail by one party to a customer which another party might othemise serve. Cost shall include.a reasonable return on Licensees' investment. The sale of a portion of the capacity of a

-generating unit shall be upon the basis of a rate that will recover to the seller the pro rata part of the fixed costs and.

operating and maintenance expenses of the unit, provided that, in circumstances in which Licensees and one or more entities in

. the Western Mississippi Area take an undivided interest in a unit in fee, construction costs and operation and maintenance expenses shall be paid pro rata.

2. (a) Licensees shall interconnect with and coordinate reserves by means of the sale and purchase of emergency and/or scheduled maintenance bulk power with any entity (ies) in the Western Mississippi Area engaging in or proposing to engage in electric bulk power supply on terms that will provide for Licensees' costs in connection therewith and allow the other party (ies) full access to the benefits of reserve coordination.

(b) Emergency service and/or scheduled maintenance service to be provided by each party shall be furnished to the fullest extent available from the supplying party and desired by the party in need. Licensees and each party (tes) shall provide to the other emergency service and/or scheduled maintenance service if and when available from its own m :scaecerc.2 -

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9 generation and from generation of others' to the extent it can do so without impairing service to its customers including other electric systems:to whom it has firm commitments.

(c) Licensees and the other party (fes) to a reserve sharing arrangement shall from time to time jointly establish.

the minimum reserves to be installed and/or provided under contractual arrangements as necessary to maintain in total a reserve margin sufficient to provide adequate reliability of

' power supply to the interconnected systems of the parties. If Itcensees. plan their reserve margin on a. pooled basis with other Middle South System companies, the reserves jointly established hereunder shall be on the same basis. Unless otherwise agreed upon, minimum reserves'shall be calculated as a percentage of estimated peak load responsibility. No party, to the arrangement shall be required to maintain greater reserves than the percentage of its estimated peak load -

responsibility which results from the aforesaid calculation, provided that, if the reserve requirements of Licensees are increased over the amount Licensees would be required to maintain without such interconnection, then the other party (their ()ies) shallthe reserves befull required amounttoincarry or provide kilowatts forincrease.

of. such as its (d) The parties to such a reserve sharing arrangement shall provide such amounts of ready reserve capacity as may be adequate to avoid the imposition of unreasonable demands on the other in meeting.the normal contingencies of operating its system. . However, in no circumstances shall. the ready reserve -

h requirement exceed the installed reserve requirement..

(e) Interconnections will not be limited to low voltages when higher voltages are available from Licensees' insta11ec facilities in the area where interconnection is ' desired, when w the proposed arrangement is found to be technically and economically feasible. Control and telemetering facilities shall be provided as required for safety and prudent operation l of the interconnected systems.

(f) Interconnection and coordination agreements shall not embody any restrictive provisions M*taining to intersystem .

coordination. Good industry praco.ee as developed in the area from time to time (if non-restrictive) will satisfy this provision.

3. Licensees will sell bulk power at their costs to or purchase bulk power from any other entity (fes) in the Western  !

Mississippi Area engaging in or proposing to engage in generation of electric power when such transactions would serve to reduce the overall costs of new bulk power supply for themselves or for the other party (ies) to the transaction. 4 This refers specifically to the opportunity to coordinate in the planning of new generation, transmission and related 1 facilities. This provision shall not be construed to recuire l 'J12M'5026032702 4

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Licensees to purchaseLor sell bulk power if they find such purchase or sale infeasible or their costs in connection with such purchase or sale would exceed their benefit therefrom.

4. (a)? . Licensees and any successor in title shall offer an opportunity tu participate in the Grand Gulf Nuclear Units and any other nuclear generating unit (s) which they or either of

.them, may construct, own and operate in the State of Mississippi, severally or jointly, during the term of the instant license, or any extension or renewal thereof, to any entity (ies) in the Western Mississippi Area by either a reasonable ownership interest in such unit (s), or by a contractual right to purchase a reasonable portion of the output of such unit (s) at the cost thereof if the entity (ies)

'. .so elects. In connection with such access, Licensees will also offer-transmission service as may be required for delivery. of such power to such entity (fes) on a basis that will fully compensate Licensees for their cost.

(b) In the' event that during the term of the instant

. license, or any extension or renewal thereof, Licensees obtain participation in. the ownership of or rights' to a portion of the output of one or more nuclear generating units constructed, owned and operated by any affiliate or subsidiary of the Middle South Utilities System other than Licensees, or by any

, successorLin title to the Grand Gulf Nuclear Units Licensees shall exert their best efforts to obtain participation in such nuclear unit (s)- by any entity (fes) in the Western Mississippi Area requesting such participation on terms no less favorable than the terms of Licensees' participation therein.

-5. (a) Licensees shall facilitate the excha'nge of bulk power by transmission over its transmission facilities between or among two or more entities in the Western Mississippi Area with which it'is interconnected; and between any such entity (ies) and any entity (tes) engaging in bulk power supply outside the Western Mississippi Area between whose facilities Licensees' transmission lines and other transmission lines would form a continuous electrical' path, provided that (1) pemission to utilize such other transmission-lines has been obtained, and (2) the arrangements reasonably can be accommodated from a functional and technical standpoint. Such transmission shall be on. terms that fully compensate Licensees for their cost.

Any entity (ies) requesting such transmission arrangements shall give reasonable advance notice of its (their) schedule and requirements. (The foregoing applies to any entity (ies) to ,

which Licensees may be interconnected in the future as well as those to which they are now interconnected.)

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(b) . Licensees shall include in their planning and construction program sufficient transmission capacity as required for the transactions referred to in subparagraph (a) of this paragraph, provided that any entity (fes) in the Western

' Mississippi Area give Licensees sufficient advance notice as may be necessary to accomodate its (their) requirements from a functional and technical standpoint and that such entity (fes) fully compensates Licensees for their cost. Licensees shall not be required to construct transmission facilities which will be of no demonstrable present or future benefit to Licensees.

6. Licensees will sell power for resale to any entity (fes) in the Western Mississippi Area now engaging in or proposing to engage in retail distribution of electric power.

7. The foregoing conditions shall be implemented in a manner consistent with the provisions of the Federal Power Act and the Mississippi Public Utilities Act of 1956 and all rates, charges or practices in connection therewith are to be subject to the.

approval of regulatory agencies having jurisdiction over them.

E. This facility is subject to the following conditions for the protection of the environment:

1. The applicants shall implement the Environmental Protection Program Respecting Construction of Grand Gulf Nuclear Station, Units 1 & 2. as set out in Staff Exhibit 2.A in the evidentiary

' hearing conducted by the Atomic Safety and Licensing Board in this proceeding, except that (i) the requirement in paragraph 12 of Section ~1 of Part Two and in Table I for monitoring and documenting stage and correlating stage with surface water quality measurements and (ii) the requirement in paragraph 11 of section 1 of Part Two for monitoring and capacity requirements for sediment retention basins need not be implemented

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henceforth.

2. Before engaging in a construction activity which may result in a significant adverse environmental impact that was not evaluated or that is significantly greater than that evaluated I in the Final Environmental Statement, the applicants shall provide written notification to the Director of Licensing;

3. If unexpected harmful effects or evicence of irreversible damage are detected during facility construction, the applicants shall provide an acceptable analysis of the problem and a plan of action to eliminate or significantly reduce the harmful effects or damage.

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4. This permit is subject to the Ifmitation that a Ifcense i authorizing operation of the facility will not be issued by the i Commission unless (a) the applicants submit to the Commission-  !

the complete final safety analysis report, portions of which may .

be submitted and evaluated from time to time; (b) the j Commission finds that the final design provides reasonable-assurance that the health and safety of the pubite will not be endangered by the operation of the factitty in accordance with procedures approved by it in connection with the issuance of said license; (c) the Commission finds that operation of the facility will be in accordance with 10 CFR Part 51 of the Coneitssion's regulations and all applicable requirements of said Part 51 were satisfied; and (d) the applicants submit proof of financial protection and the execution of an indemnity agreement as required by Section 140 of the Act.

5. This permit is effective as of its date of issuance and shall expire on the latest completion date indicated in paragraph 3.A above.

FOR THE ATOMIC ENERGY COMMISSION A. Giambusso Deputy Director for Reactor Projects Directorate of Licensing Date of Issuance: SEP 4, 1974 I

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INSERT-

. Pending completion of Commission review of the licensees' application to amend D the permit to delete' the following antitrust conditions, and until further l1 order of the Commission, MP&L shall comply with I-

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s M!SSISSIPPI POWER & t!GMT COMPANY SYSTEP. EhERGY RE50VPCE5, INC.

SOUTH MISSI5SIPPI ELECTRIC POWER ASSOCIATION DDGKtl ND. 50-417 GRAND GULF NUCLEAR STATION, UNIT 2 AMENDMENT TO CONSTRUCTION PERMIT

.9 Amendsent No. +

Construction Permit No. CPPR-119

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

. The application for amendment to Construction Permit No. CPPR-119, i dm transmitte.d m .m . .

bg< m.m._, Mi;;i::ippi, .",;. ;r,..__o r.d Light t ,,; :y': 1;tt:r:

d:t:_,d N% 1986r complies with the sta$dards'aAIrequ'irEnts oEthiI'omic t EnNov "

(7e/[cr d d c/ Act of 1954 as amended (the Act), and the Comission's rules and p/ jgge/, regulations set forth in 10 CFR Chapter I;

~B. The issuance of this amendment will not be inimical to the common defense and security or'to the health and safety of the public; C. There is reasonable assurance (1) that the activities authorized by this amendment can be conducted without endangering the health and

, safety of the pubite and (11) that such activ' tiss will be conducted in accordance with the Commission's regulations,'except as duly exempted from compliance therefrom by; D. The issuance of this amendment is in accordance with 10 CFR Part 51 of the Contr.ission's regulations and all applicable requirements have been satisfied.

. 2. Accordingly, the Nuclear Regulatory Comission has issued Amendment No. {

. to Construction Permit No. CPPR-!!9. It is amended as follows:

c A. Change the title block at the head of the Construction Permit to read as follows: I EDS$9 c/r/Afices ' 0c. .

, MISSISSIPPI POWER & (fG4T COMPANY SYSTEM ENERGY RESOURCE 5, INC.

SOUTH MIS 5IS5IPPI ELECTRIC POWER ASSOCIATION 00CKEi NO. 50-417 ,

GRAND GULF NUCLEAR STATION, UNIT 2 CONSTRUCTION PERMIT Construction Permit No. CPPR-119

8. Change paracraph 1.B to read as follows:

1. B. 57tSkr46Y 9- T :qchtet "es,m, r r-Inc. acting for itself and as an acent forJSouth Mississippi Electric Power Association

( A M MA W " % lpc..m$in: :;plicant: ;r 11:::::::)-, has described the proposed s l

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design of the Grand Gulf Nuclear Station, Unit 2 (the facility),

including, but not limited to, the principal architectural and engineering criteria for the design and has identified the major features or components incorporated therein for the protection of the health and safety of the public; C. Change paragraph 1.F to read as follows:

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1. F. Sy:t:: S;. u  %;-. us, Inc. is technically qualified to {

design and construct the proposed facility; Y9 NS p h

3. F. /i Missh:ippi Pcw;(. . Lisi. Cumveny inFR)-is authorized to transfer its rights under CPPR-119 to construct the facility Eel topiM, provided however, that until further authorization (

of the Commission, MP&L and SERI shall continue to be responsible for compliance with the obligations imposed on the licensees in the antitrust conditions identified in Paragraph 3.D, ar.d provided further that SSK/lecepts its D.I rights under CPPR-119 to construct the facility subject to the outcome of the pending separate anitrust review of the antitrust considerations of this transfer.

E. Change paragraph 2 in Amendment No. 6 to CPPR-119 to read as follows:

2. All references to applicants or licensees shall includehfb%f CN#05 Mississippi Power and Light Company (MP&L), System Resources,Inc.(SERI),andSouthMississippiElectric #

E Power Association (SMEPA), except in Paragraph 3.0 Ifcensees shall not, include South Mississippi Electric l Power Association / A NEE'l 0FEMm445, AR. l

3. This amendment is effective as of the date its issuance.

FOR THE NUCLEAR REGULATORY COMMISSION f

Robert M..Bernero, Director

f. Division of BWR Licensing 1 Date of Issuance: December 20 , 1986 l

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