NOC-AE-06001972, Evidence of Financial Protection

Evidence of Financial Protection

ML060470541
Person / Time
Site:	South Texas
Issue date:	02/06/2006
From:	Harrison G South Texas
To:	Document Control Desk, Office of Nuclear Reactor Regulation
References
G20, NOC-AE-06001972
Download: ML060470541 (15)

Text

I Nuclear Operating Company SouthTxasPr/cd Eklecr Gnatng Station PO. Bo2 Wads28th, TeaS 77483 February 6, 2006 NOC-AE-06001972 File No.: G20 10CFR1 40.11 (a)(4) 10CFR1 40.1 5 10CFR1 40.1 7 10CFR1 40.21 U. S. Nuclear Regulatory Commission Attention: Document Control Desk One White Flint North 11555 Rockville Pike Rockville, MD 20852-2738 South Texas Project Units 1 and 2 Docket Nos.: STh 50-498, STN 50-499 Evidence of Financial Protection Pursuant to the requirements of 10CFR1 40.11 (a)(4), 10CFR1 40.1 5, 10CFR1 40.1 7, and 10CFR1 40.21, STP Nuclear Operating Company submits the attached Nuclear Energy Liability Insurance policy endorsements from American Nuclear Insurers (ANI). This submittal contains the following endorsements:

Nuclear Eneray Liability Facility Form (NF-0307)

Master Worker Form (NW-0657)

Secondary Financial Protection (N-011 3 / N-011 6)

Should you have any questions, concerns, or require additional information on this matter, please contact Karen Wheaton at (361 972-8698 or Ron Hyde at (361) 972-7992.

George R. Harrison Manager, Financial Services KMW Attachments: Endorsements:

Facility Form (NF-0307) - (7)

Master Worker Form (NW-0657) - (2)

Secondary Financial Proteclion (N-011 3) - (2)

Secondary Financial Protection (N-0116) - (2)

O\HUMAN-RESOURCES\INSURANCE\ANNUAL MUST D0S\2006\NRC-LIArBaITY INS NOTICE (ANi-200.6DOC STINo.: 31983511

STP Nuclear Operating Company NOC-AE-06001972 Page 2 cc:

(paper copy) (electronic copy)

Bruce S. Mallett A. H. Gutterman, Esquire Regional Administrator, Region IV Morgan, Lewis & Bockius LLP U. S. Nuclear Regulatory Commission 611 Ryan Plaza Drive, Suite 400 Mohan C. Thadani Arlington, Texas 76011-8064 U. S. Nuclear Regulatory Commission Jeffrey Cruz Steve Winn U. S. Nuclear Regulatory Commission Michael A. Reed P. 0. Box 289, Mail Code: MN1 16 Texas Genco, LP Wadsworth, TX 77483 Richard A. Ratliff C. Kirksey Bureau of Radiation Control City of Austin Texas Department of State Health Services 11 00 West 49th Street J. J. Nesrsta Austin, TX 78756-3189 R. K. Temple E. Alarcon C. M. Canady City Public Service City of Austin Electric Utility Department Jon C. Wood 721 Barton Springs Road Cox Smith Matthews Austin, TX 78704 R. G. Hyde, w/o Electronic R. D. Savage w/o Electronic RMS N2002 File O:\HUMAN-RESOURCES\INSURANCE\ANNUAL MUST DOS\2006\NRC-LIABIITY INS NOTICE (ANI-2006).DOC STINo.: 31983511

NUCLEAR ENERGY LIABILITY INSURANCE NUCLEAR ENERGY LIABILITY INSURANCE ASSOCIATION Endorsement Nos. 80 and 86, entitled "LIMITATION OF COVERAGE FOR TERRORIST ACTS (ONE SHARED INDUSTRY AGGREGATE LIMIT), are deleted and replaced with the following:

LIMITATION OF COVERAGE FOR TERRORIST ACTS THAT ARE OUTSIDE THE SCOPE OF THE TERRORISM RISK INSURANCE ACT OF 2002 It is agreed that with respect to bodily injury, property damage, environmental damage or evacuation of the public caused by the nuclear energy hazard and arising out of a non-certified act(s) of terrorism:

l. the total aggregate liability of the companies shall be $300,000,000 regardless of (i) the number of non-certified acts of terrorism affecting this or any other nuclear energy liability policy (Facility Form or Supplier's and Transporter's Form) or (ii) the number of nuclear energy liability policies (Facility Form or Supplier's and Transporter's Form) issued by the Nuclear Energy Liability Insurance Association under which coverage may be sought.

2. the limit of liability shown in Item 4 of the policy Declarations or as amended by endorsement to this policy is subject to the industry aggregate limitation described in paragraph 1 above.

3. the term "non-certified act(s) of terrorism" as used herein means a violent act or an act that is dangerous to human life, tangible or intangible property, or infrastructure that is committed by any individual or individuals and that appears to be part of an effort to coerce a civilian population or to influence the policy or affect the conduct of any government by coercion, and the act is not certified as a terrorist act pursuant to the Terrorism Risk Insurance Act of 2002.

This is to certify that this is a true copy of the original Endorsement having the endorsement number and being made part of the Nuclear Energy Liability Policy (Facility Form) as designated hereon. No insurance is afforded hereunder.

John L. Quattrocchi, Senior Vice President, Underwriting, American Nuclear Insurers Effective Date of this Endorsement: January 1, 2003 To form a part of Policy No. NF -0307 (12:01 A.M. Standard Time)

Issued to: STP Nuclear Operating Company, Texas Genco, LP, City Public Service Board of San Antonio, Central Power and Light Company, City of Austin Date of Issue: March 15, 2004 For the subscribing companies By fPe, b Prsien

~,7 6' Presiden Endorsement No.: 91 Countersigned by NE-85a (1/1/03)

CERTIFIED COPY

NUCLEAR ENERGY LIABILITY INSURANCE NUCLEAR ENERGY LIABILITY INSURANCE ASSOCIATION CHANGES IN SUBSCRIBING COMPANIES AND IN THEIR PROPORTIONATE LIABILITY ENDORSEMENT CALENDAR YEAR 2004

1. It is agreed that with respect to bodily injury, property damage, environmental damage or evacuation of the public caused, during the effective period of this endorsement, by the nuclear energy hazard:

a. The word "companies" wherever used in the policy means the subscribing companies listed below.

b. The policy shall be binding on such companies only.

c. Each such company shall be liable for its proportion of any obligation assumed or expense incurred under the policy because of such bodily injury, property damage, environmental damage or evacuation of the public as designated below.

2. It is agreed that the effective period of this endorsement is from the beginning of the effective date of this endorsement stated below to the close of December 31, 2004 or to the time of the termination or cancellation of the policy, if sooner.

Continental Insurance Company 9.880404  %

Employers Mutual Casualty Company 1.718331  %

Federal Insurance Company 34.366622  %

Greenwich Insurance Company 12.887484  %

Motors Insurance Corporation 0.766376  %

Nat'l Union Fire Ins Co of Pitts, PA 6.014159  %

State Farm Mutual Automobile Insurance Company 17.183312  %

Zurich American Insurance Company 17.183312  %

Total 100.000000  % NE-2004 This is to certify that this is a true copy of the original Endorsement having the endorsement number and being made part of the Nuclear Energy Liability Policy (Facility Form) as designated hereon. No insurance is afforded hereunder.

John L. Quattrocchi, Senior Vice President, Underwriting, American Nuclear Insurers Effective Date of this Endorsement: January 1, 2004 To form a part of Policy No. NF -0307 (12:01 A.M. Standard Time)

Issued to: STP Nuclear Operating Company, Texas Genco, LP, City Public Service Board of San Antonio, Central Power and Light Company, City of Austin Date of Issue: March 26, 2004 For the subscribing companies Byl lG I C// c' President Endorsement No.: 92 Countersigned by - -,-kzazz CERTIFIED COPY

NUCLEAR ENERGY LIABILITY INSURANCE NUCLEAR ENERGY LIABILITY INSURANCE ASSOCIATION ADDRESS OF NUCLEAR ENERGY LIABILITY INSURANCE ASSOCIATION ENDORSEMENT It is agreed that the address of the Nuclear Energy Liability Insurance Association appearing in the "Company Representation" condition of the policy is amended to read:

95 Glastonbury Boulevard Glastonbury, CT 06033 This is to certify that this is a true copy of the original Endorsement having the endorsement number and being made part of the Nuclear Energy Liability Policy (Facility Form) as designated hereon. No insurance is afforded hereunder.

John L. Quattrocchi, Senior Vice President, Underwriting, American Nuclear Insurers Effective Date of this Endorsement: February 1, 2004 To form a part of Policy No. NF -0307 (12:01 A.M. Standard Time)

Issued to: STP Nuclear Operating Company, Texas Genco, LP, City Public Service Board of San Antonio, Central Power and Light Company, City of Austin Date of Issue: March 26, 2004 For the subscribing companies By 'Pe t IJ. I

(_/ 0 President Endorsement No.: 93 Countersigned by \ -

NA CERTIFIED COPY

NUCLEAR ENERGY LIABILITY INSURANCE NUCLEAR ENERGY LIABILITY INSURANCE ASSOCIATION ADVANCE PREMIUM AND STANDARD PREMIUM ENDORSEMENT CALENDAR YEAR 2004 It is agreed that Items 1 and 2 of Endorsement No. 90 are amended to read:

1. ADVANCE PREMIUM: It is agreed that the Advance Premium due the companies for the period designated above is: $861,182.00

2. STANDARD PREMIUM AND RESERVE PREMIUM: In the absence of a change in the Advance Premium indicated above, it is agreed that, subject to the provisions of the Industry Credit Rating Plan, the Standard Premium is said Advance Premuim and the Reserve Premium is: $660,691.00 RETURN PREMIUM: $20,977.01 This is to certify that this is a true copy of the original Endorsement having the endorsement number and being made part

-of the Nuclear Energy Liability Policy (Facility Form) as designated heron. No insurance is afforded hereunder.

John L. Quattrocchi, Senior Vice President - Underwriting American Nuclear Insurers Effective Date of this Endorsement: January 1,2004 To form a part of Policy No. NF -0307 (12:01 A.M. Standard Time)

Issued To: STP Nuclear Operating Company, Texas Genco, LP, City Public Service Board of San Antonio, Central Power and Light Company, City of Austin Date of Issue: July 12,2004 For the subscribing companies By /e> . )

C/ a President Endorsement No: 94 Countersigned by CA CERTIFIED COPY NE-36

NUCLEAR ENERGY LIABILITY INSURANCE NUCLEAR ENERGY LIABILITY INSURANCE ASSOCIATION CHANGES IN SUBSCRIBING COMPANIES AND IN THEIR PROPORTIONATE LIABILITY ENDORSEMENT CALENDAR YEAR 2005

1. It is agreed that with respect to bodily injury, property damage, environmental damage or evacuation of the public caused, during the effective period of this endorsement, by the nuclear energy hazard:

a. The word "companies" wherever used in the policy means the subscribing companies listed below.

b. The policy shall be binding on such companies only.

c. Each such company shall be liable for its proportion of any obligation assumed or expense incurred under the policy because of such bodily injury, property damage, environmental damage or evacuation of the public as designated below.

2. It is agreed that the effective period of this endorsement is from the beginning of the effective date of this endorsement stated below to the close of December 31, 2005 or to the time of the termination or cancellation of the policy, if sooner.

AXIS Reinsurance Company 14.826676  %

Employers Mutual Casualty Company 2.965335  %

Federal Insurance Company 34.101355  %

Motors Insurance Corporation 0.661271  %

Nat'l Union Fire Ins Co of Pitts, PA 14.826676  %

State Farm Mutual Automobile Insurance Company 17.792011  %

Zurich American Insurance Company 14.826676  %

Total 100.000000  % NE-2005 This is to certify that this is a true copy of the original Endorsement having the endorsement number and being made part of the Nuclear Energy Liability Policy (Facility Form) as designated hereon. No insurance is afforded hereunder.

John L. Quattrocchi, Senior Vice President, Underwriting, American Nuclear Insurers Effective Date of this Endorsement: January 1, 2005 To form a part of Policy No. NF -0307 (12:01 A.M. Standard Time)

Issued to: STP Nuclear Operating Company, Texas Genco, LP, City Public Service Board of San Antonio, Central Power and Light Company, City of Austin Date of Issue: February 28, 2005 For the subscribing companies By ,Pedtx- . I

,/- - President Endorsement No.: 96 Countersigned by -s. -

CERTIFIED COPY

NUCLEAR ENERGY LIABILITY INSURANCE NUCLEAR ENERGY LIABILITY INSURANCE ASSOCIATION AMENDATORY ENDORSEMENT It is agreed that:

1. Item 1 of the Declarations, as amended by Endorsement Nos. 1, 58, 67 and 84, is further amended to read:

Item 1. Named Insured: STP Nuclear Operating Company, Texas Genco, LP, City Public Service Board of San Antonio, City of Austin Address: c/o STP Nuclear Operating Company P.0. Box 289 Wadsworth, TX 77483

2. The Operator of the Facility designated in Item 3 of the Declarations is amended to read:

STP Nuclear Operating Company.

3. Condition 17, "Authorization of Named Insured", is amended to read:

17 AUTHORIZATION OF NAMED INSURED Except with respect to compliance with the obligations imposed on the insured by Conditions 5, 6, 7, 8, 9, 10 and 11 of this policy, STP Nuclear Operating Company is authorized to act for every other insured in all matters pertaining to this insurance.

This is to certify that this is a true copy of the original Endorsement having the endorsement number and being made part of the Nuclear Energy Liability Policy (Facility Form) as designated hereon. No insurance is afforded hereunder.

John L. Quattrocchi, Senior Vice President, Underwriting American Nuclear Insurers Effective Date of this Endorsement: May 20, 2005 To form a part of Policy No. NF -0307 (12:01 A.M. Standard Time)

Issued to: STP Nuclear Operating Company, Texas Genco, LP, City Public Service Board of San Antonio, City of Austin Date of Issue: June 17, 2005 For the subscribing companies By P)r sIdnt C, President Endorsement No.: 97 Countersigned by e I CERTIFIED COPY

NUCLEAR ENERGY LIABILITY INSURANCE NUCLEAR ENERGY LIABILITY INSURANCE ASSOCIATION ADVANCE PREMIUM AND STANDARD PREMIUM ENDORSEMENT CALENDAR YEAR 2006

1. ADVANCE PREMIUM: It is agreed that the Advance Premium due the companies for the period designated above is: $967,880.00

2. STANDARD PREMIUM AND RESERVE PREMIUM: In the absence of a change in the Advance Premium indicated above, it is agreed that, subject to the provisions of the Industry Credit Rating Plan, the Standard Premium is said Advance Premuim and the Reserve Premium is: $742,627.00 This is to certify that this is a true copy of the original Endorsement having the endorsement number and being made part of the Nuclear Energy Liability Policy (Facility Form) as designated heron. No insurance is afforded hereunder.

John L. Quattrocchi, Senior Vice President - Underwriting American Nuclear Insurers Effective Date of this Endorsement: January 1, 2006 To form a part of Policy No. NF -0307 (12:01 A.M. Standard Time)

Issued To: STP Nuclear Operating Company, Texas Genco, LP, City Public Service Board of San Antonio, City of Austin Date of Issue: October 11, 2005 For the subscribing companies By Pe . 1 C/ a President Endorsement No: 98 Countersigned by__ __ __ _

CERTIFIED COPY NE-36

NUCLEAR ENERGY LIABILITY INSURANCE NUCLEAR ENERGY LIABILITY INSURANCE ASSOCIATION AMENDMENT OF NAMED INSUREDS AND ADDRESSES ENDORSEMENT It is agreed that:

1. Item 1 of the Declarations, as amended by Endorsement Nos. 2 and 7, is further amended to read:

Item 1. Named Insureds and Addresses:

(a) STP Nuclear Operating Company P.O. Box 289 Wadsworth, TX 77483 (b) Texas Genco, LP P.O. Box 4567 Houston, TX 77210 (c) City Public Service Board of San Antonio P.O. Box 1771 San Antonio, TX 78296 (d) City of Austin P.O. Box 1088 Austin, TX 78767

2. Item 3 of the Declarations, "Operator of the Facility", is amended to read:

Operator of the Facility: STP Nuclear Operating Company This is to certify that this is a true copy of the original endorsement having the endorsement number and being made part of the Certificate of Insurance bearing the number designated hereon for insurance coverage under the Nuclear Energy Liability Policy (Facility Worker Form).

No insurance is afforded hereunder.

John L. Quattrocchi, Senior Vice President, Underwriting Amrprirnn NtijnIpr Inqiirprq Effective Date of this Endorsement: May 20, 2005 To form a part of Certificate No. NW -0657 (12:01 A.M. Standard Time)

Issued to: STP Nuclear Operating Company, Texas Genco, LP, City Public Service Board of San Antonio, City of Austin Date of Issue: June 17,2005 For the subscribing compa 'es By, .

C1/ \

>*l 1--~

President Endorsement No.: 11 Countersigned by @'

4 S e~

CERTIFIE D COPY

NUCLEAR ENERGY LIABILITY INSURANCE NUCLEAR ENERGY LIABILITY INSURANCE ASSOCIATION ADVANCE PREMIUM AND STANDARD PREMIUM ENDORSEMENT CALENDAR YEAR 2006

1. ADVANCE PREMIUM: It is agreed that the Advance Premium due the companies for the period designated above is: $85,108.00

2. STANDARD PREMIUM AND RESERVE PREMIUM: In the absence of a change in the Advance Premium indicated above, it is agreed that, subject to the provisions of the Industry Credit Rating Plan, the Standard Premium is said Advance Premuim and the Reserve Premium is: $65,175.00 This is to certify that this is a true copy of the original Endorsement having the endorsement number and being made part of the Certificate of Insurance bearing the number designated heron for insurance coverage under the Nuclear Energy Liability Policy (Facility Workers Form). No insurance is afforded hereunder.

John L. Quattrocchi, Senior Vice President - Underwriting American Nuclear Insurers Effective Date of this Endorsement: January 1, 2006 To form a part of Certificate No. NW -0657 (12:01 A.M. Standard Time)

Issued To: STP Nuclear Operating Company, Texas Genco, LP, City Public Service Board of San Antonio, City of Austin Date of Issue: October 5, 2005 For the subscribing companies By _g e . 2 I Cal 0J to President Endorsement No: 12 Countersigned by___=._

CERTIFIED COPY

NUCLEAR ENERGY LIABILITY INSURANCE NUCLEAR ENERGY LIABILITY INSURANCE ASSOCIATION ENDORSEMENT TO CERTIFICATE NO. N -01 13 FORMING PART OIF MASTER POLICY NO. 1 NUCLEAR ENERGY LIABILITY INSURANCE (SECONDARY FINANCIAL PROTECTION)

It is agreed that:

I1. Item I of the Declarations, as amended by Endorsement Nos. 9, 19, 28, 30 and 33, is further amended to read:

Item 1. Named insureds and addresses:

(a) STP Nuclear Operating Company P.O. Box 289 Wadsworth, Texas 77483 (b) Texas Genco, LP P.O. Box 4567 Houston, Texas 77210

- (c) City Public Service Board of San Antonio P.O. Box 1771 San Antonio, Texas 78296 (d) City of Austin P.O. Box 1088 Austin, Texas 78767

2. This endorsement amends none of the other provisions of the "Certificate of Insurance, Declarations and Bond for Payment of Retrospective Premiums" of said Certificate No. N -01 13.

This is to certify that this is a true copy of the original endorsement havinG the endorsement number and being made part of the Certificate of Insurance bearing the number designated hereon for insurance coverage under the Nuclear Energy Liability Policy (Secondary Financial Protection). No insurance is afforded hereunder.

John L. Quattrocchi, Senior Vice President, Underwriting, American Nuclear Insurers Effective Date of this Endorsement: May 20, 2005 To form a part of Certificate No. N -0113 (12:01 A.M. Standard Time)

Issued to: STP Nuclear Operating Company, Texas Genco, LP, City Public Service Board of San Antonio, City of Austin Date of Issue: June 17, 2005 For the subscribing companies By C/

Pe1vt1 tPresident I

Endorsement No.: 40 Countersigned by N -lT CERTIFIED COPY

NUCLEAR ENERGY LIABILITY INSURANCE NUCLEAR ENERGY LIABILITY INSURANCE ASSOCIATION ANNUAL PREMIUM ENDORSEMENT CALENDAR YEAR 2006

1. ANNUAL PREMIUM: It is agreed that the Annual Premium due the companies for the period designated above is: $9,492.00 This is to certify that this is a true copy of the original Certificate, bearing the number designated heron, for insurance coverage under the Master Policy-Nuclear Energy Liability Insurance (Secondary Financial Protection). No insurance is afforded by this copy.

John L. Quattrocchi, Senior Vice President - Underwriting American Nuclear Insurers Effective Date of this Endorsement: January 1, 2006 To form a part of Certificate No. N -0113 (12:01 A.M. Standard Time)

Issued To: STP Nuclear Operating Company, Texas Genco, LP, City Public Service Board of San Antonio, City of Austin Date of Issue: October 20, 2005 For the subscribing companies By / 2.

C/2 a President Endorsement No: 41 Countersigned by I A=,

CERTIFIED COPY

NUCLEAR ENERGY LIABILITY INSURANCE NUCLEAR ENERGY LIABILITY INSURANCE ASSOCIATION ENDORSEMENT TO CERTIFICATE NO. N -01 16 FORMING PART OF MASTER POLICY NO. 1 NUCLEAR ENERGY LIABILITY INSURANCE (SECONDARY FINANCIAL PROTECTION)

It is agreed that:

I1. Item 1 of the Declarations, as amended by Endorsement Nos. 8, 17, 26, 28 and 31, is further amended to read:

Item 1. Named insureds and addresses:

(a) STP Nuclear Operating Company P.O. Box 289 Wadsworth, Texas 77483 (b) Texas Genco, LP P.O. Box 4567 Houston, Texas 77210 (c) City Public Service Board of San Antonio P.O. Box 1771 San Antonio, Texas 78296 (d) City of Austin P.O. Box 1088 Austin, Texas 78767

2. This endorsement amends none of the other provisions of the "Certificate of Insurance, Declarations and Bond for Payment of Reitrospective Premiums" of said Certificate No. N -0116.

This is to certify that this is a true copy of the original endorsement having the endorsement number and being made part of the Certificate of Insurance bearing the number designated hereon for insurance coverage inder the Nuclear Energy Liability Policy (Secondary Financial Protection). No insurance is afforded hereunder.

John L. Quattrocchi, Senior Vice President, Underwriting, American Nuclear Insurers Effective Date of this Endorsement: May 20, 2005 To form a part of Certificate No. N -0116 (12:01 A.M. Standard Time)

Issued to: STP Nuclear Operating Company, Texas Genco, LP, City Public Service Board of San Antonio, City of Austin Date of Issue: June 17,2005 For the subscribing companies By ,Ple I C - President Endorsement No.: 38 Countersigned by

'A -'I CERTIFIE DCOPY

NUCLEAR ENERGY LIABILITY INSURANCE NUCLEAR ENERGY LIABILITY INSURANCE ASSOCIATION ANNUAL PREMIUM ENDORSEMENT CALENDAR YEAR 2006

1. ANNUAL PREMIUM: It is agreed that the Annual Premium due the companies for the period designated above is: $9,492.00 This is to certify that this is a true copy of the original Certificate, bearing the number designated heron, for insurance coverage under the Master Policy-Nuclear Energy Liability Insurance (Secondary Financial Protection). No insurance is afforded by this copy.

John L. Quattrocchi, Senior Vice President - Underwriting American Nuclear Insurers Effective Date of this Endorsement: January 1, 2006 To form a part of Certificate No. N -0116 (12:01 A.M. Standard Time)

Issued To: STP Nuclear Operating Company, Texas Genco, LP, City Public Service Board of San Antonio, City of Austin Date of Issue: October 20, 2005 For the subscribing companies By <e)* >fl 6 l A)

President Endorsement No: 39 Countersigned by ___ _ ___

CERTIFIED COPY