NRC-89-0142, Application for Amend to License NPF-43,modifying License to Reflect Util Purchase of Wolverine Power Supply Cooperative,Inc Ownership Interest in Facility.Transfer of Ownership Scheduled to Occur on or About 900131

Application for Amend to License NPF-43,modifying License to Reflect Util Purchase of Wolverine Power Supply Cooperative,Inc Ownership Interest in Facility.Transfer of Ownership Scheduled to Occur on or About 900131

ML20247R093
Person / Time
Site:	Fermi
Issue date:	07/24/1989
From:	Sylvia B DETROIT EDISON CO.
To:	NRC OFFICE OF INFORMATION RESOURCES MANAGEMENT (IRM)
References
CON-NRC-89-0142, CON-NRC-89-142 NUDOCS 8908070340
Download: ML20247R093 (9)

Text

a -.n . . . - - _ _ . . _ _

-t R. R lph Sylvia -

eg- ,.

Sensor Vice President -

'6edoit . _ 6400 North Dmee Highway

. Newpod. Michigan 48166 (313) !A6-4150 .

July 24, 1989 NIC-89-0142 a

U. S. Itaclear Regulatory Comunission

' Attn Doctanent Control Desk. .

.. Washington, D. C. 20555 L/

References:

1). Fermi 2 2 - NIC Docket No. 50-341 NIC License No. WF-43 .

2) Detroit Miscc Letter to NIC, NIC-8&-0053,

" Change in Ownership Interest", dated March 2, 1988 e

Subject:

Proposed Operating License Amendment for Purchase of Wolverine Power Supply

~

rWwarative, Inc. Interest in Fermi 2 6" Pursuant to 10CFR50.90, Detroit Mison Cassany hereby proposes to amend Operating License NPF-43 for the Fermi 2 plant by modifying the-f-n license to reflect the purchase by Detroifi Mison of Wolverine Power Suppy Cooperative, Inc.'s ownership interest in Fermi 2. The d;, ' transfer:of' ownership is scheduled to occureon or about V.. Janoary 30, 1990. -

C#.

• Detroit Mison has evaluated the proposed' Operating License Amendment b against the criteria of 10CFR50.92, and determined that no significant 7W hazards consideration is involved. The Fermi 2 Itx: lear Safety Review Group has reviewed the proposed Operating License changes and concurs

!p with the enclosed determinations. In accordance with 10CFR50.91, -1 p, - Detroit Mison has provided a copy of this letter to the State of-fg.

Michigan.

4 i

s L $

1 l-1 h, __-__ _ .

7

~

USmc July 24,1989 '

MC-89-0142 Page 2 If you have any questions, please conta:t Mr. Peter Marquardt at (313) 237-7722.

Sincerely, p-Ihclosure cc: A. B. Davis R. C. Knop W. G. Rogers J. F. Stang Supervisor, Mvanced Planning and Review Section,

' Michigan Public Service Cmmission l

I i

I l

l i

l 1

._ _________ ___ _ A

l

}%- . ..

USNIC

- 4 Aulyl24,'1989 NIC-89-0142

. Page 3

- I, B. RATEli SYLVIA, do hereby affirm that the foregoing statenents are based on facts and circumstances which are true and accurate to the best of my knowledge and belief, bl b if. RAIMI SJLiIA Senior Vice President

, y'L j .[

On this i day of _. A4 nV , 1989, before me personally appeared B. Ralph Sylv/'/, be%g-first duly sworn and says that he executed the foregoing as his free act and deed.

11 den h. $O Notary Public ROOAird A ARMET%

Noton/ Pub!!c, Monroe County,Mt MyCornmissionkkesh11,1M I

i l

-i i

~!

i

W.

Enclosure 1 IGC-89-0142 Page 1 NtKK)DCTIM Detroit Edison and Wolverine Power Supply Cooperative, Inc.

(Wolverir.e) reached agreement in December,1987 that Detroit Edison would purchase Wolverine's ownership interest in the Fermi 2 plant.

This agreement is contained in the Seventh Amendment to the Participation Agreement between the two parties, which was provided to the IGC in Detroit Edison's letter of March 2,1988 (Reference 2). It is anticipated that the purchase will be completed as called for by the agreement and transfer of ownership will occur on or about January 30, 1990. - This proposal provides the Operating License ,

changes (attached) which are necessary to reflect the purchase. 1 EVALUATION The purchase of Wolverine's interest in Fermi 2 by Detroit Edison has ,

no effect on the operation of Fermi 2. Detroit Edison is currently I acting as Wolverine's agent and, as described in the footnote to Paragraph 1.E of the Operatir,g License, has " exclusive responsibility and control over the physical construction, operation and maintenance of the facility." This regime of control, supervision, and l responsibility will be unaltered by the proposed purchase. Detroit I Edison is and will remain responsible to the Cmmission for the proper operation and maintenance of Fermi 2.

%e proposed purchase was initiated in response to the adverse financial consequences to Wolverine frm the long-term debt created by the cost of Fermi 2 construction. We net result of the transaction is to resolve Wolverine's financial difficulties while, at the same time through a coincident power supply agreement, provide Wolverine with a long-term supply of electrical power. The U. S. Departrnent of Justice participated in these negotiations. Further, the existing anti-trust conditions contained in Paragraph 2.C.(3) of the Operating License are unaffected by the proposed purchase. Since the transaction is of the limited scope described above, Detroit Edison does not believe that further anti-trust review is required due to this proposal.

The proposed purchase does not affect the provisions for financial protection to cover public liability. Currently, Detroit Edison and Wolverine, as co-owners, jointly maintain the protection requit a3 by 10CFR140. Following the transaction, Detroit Edison will he solely responsible for maintaining this protection. The actual provisions for financial protection do not change as a result of this transaction, the only change is Detroit Edison's assumption of sole responsibility for providing the protection. Detroit Edison will I subnit proof of financial protection, as required by 10CFR140.15, upon l

1

Enclosure 1 NIC-89-0142 Page 2 revision of the applicable liability insurance policies. In additio'n, Wolverine will no longer be included as an insured party under the Fermi 2 property damage policy. Documentation of this change will be sulnitted at the conclusion of the transaction.

SIGNIFICANT HAZARDS COPEIDEATICN In accordance with 10CFR90.92, Detroit Edison has made a determination that the proposed anendnent involves no significant hazards considerations. To make this determination, Detroit Edison must establish that operation in accordance with the proposed anendnent would not: 1) involve a significant increase in the probability or consequences of an accident previously evaluated, or 2) create the possibility of a new or different kind of accident fran any accident previously evaluated, or 3) involve a significant reduction in a margin of safety.

The proposed amerdnent deals exclusively with Detroit D31 son's purchase of Wolverine Power Supply Cooperative's ownership interest in Fermi 2. The change has no impact upon the manner of plant operation.

The following discussion provides a specific analysis of the proposed change against the three standards delineated in 10CFR50.92:

a) ne proposed change will net increase the probability or consequences of an accident previously evaluated. As a result of the proposed anendment, there will not be physical changes to the fzcility, and all Operating Procedures, Limiting Conditions for Operations, Limiting Safety System i Settings, and Safety Limits specified in the Technical Specifications will renain unchanged. Detroit Edison will continue in its present role as the sole entity responsible for the physical construction, operation and maintenance of Fermi 2. There will b - o changes to the operating organization or personnel as a result of the transaction described herein.

b) The proposed amerdment will not create the possibility of a new or different kind of accident from any accident previously evaluated. The design and design bases of Fermi 2 will remain the same. %erefore, the current plant safety analyses will remain complete and accurate in addressing the licensing basis events and in analyzing plant response and consequences. Further, the Operating Procedures, Limiting Conditions for Operation, Limiting Safety System Settings, ard Safety Limits specified in the Technical Specifications are not affected. As such, the plant conditions for which

Enclosure 1 NIC-89-0142 Page 3 the design basis accident analyses were performed are still valid.

c) The proposed anerdment will not involve a reduction in any margin of safety. Plant safety margins are established )

through Limiting Conditions for Operation, Limiting Safety j system Settings, and Safety Limits specified in Technical l Specifications. Because there will be no change to either j the physical design of the plant or to any of these settings i and limits, there will be no change to any of the margins of safety, i Basa! on the above, Detroit Edison has determined that the proposed l amendaant does not involve a significant hazards consideration.

INTIRotes!NmL IMPACT l 1

Detroit Edison has reviewea the proposed Technical Specification changes against the criteria of 1(CFR51.22 for environmental considerations. We proposed change does not involve a significant hazards consideration, nor significantly change the types or significantly increase the amounts of effluents that may be released offsite, nor significantly increase individual or cumulative occupational radiation exposures. Based on the foregoing, Detroit Edison concludes that the proposed Technical Specifications do neet the criteria given in 10CFR51.22(c)(9) for a categorical exclusion from the requirements for an Environmental Impact Statement.

00tCLUSICN Based on the evaluation above: 1) there is reasornble assurance that the health and safety of the public will not be endangered by operation in the proposed manner, and 2) such activities will be conducted in empliance with the Cuu41ssion's regulations and proposed amentnents will not be inimical to the common defense and security or to the health and safety of the public.

Transfer of ownership will occur on or about January 30, 1990. The agrement con'.' ins provisions for delay of the ownership transfer in the event eithet party is restrained by injunction fram closing.

Also, there is the possibility of default by either party. Detroit Edison believes the likelihood of either event (delay or default) to be extremely low. Werefore, Detroit Edison requests the license amendment be issued such that it is effective on January 30, 1990.

Detroit Edison further requests that the NFC mend Indannity Agreenent No. B-20 to reflect the proposed purchase. Upon closing of the l

l:

F:: -

-n

! o . . - . ,

e*

JEnclosure 1 4 i' --* y_ -

_' NIC-85H)l42 -

=Page'4 W . .,.

. purchase, . Detroit Mison will return the executed'Indennity Agreenent.-

,should the purchase not close'as expocLed, Detroit Mison will=

i' r prceptly, inform the NIC 'giving details of the intended course of.- .

.. w:ticr,...

r .'

L i

i !'

-i

- -~ d

a ,

!. ... .e f

i I

/ \ umTED sTATts NUCLEAR REGULATORY COMMISSION f

i j

e mseecrow.o.c.nosss i .

'5 /

g***** DETROIT EDISON COMPANY _ c WOLVERINE POWER $UPPLY COOPERATIVE. INCORPORATED .. J

• l l

DOCKET NO. 50-341 FERMI-2 FACILITY OPERATING LICENSE License No. NPF-43

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

A. The application for license filed by the Detroit

• Edison Company and  ;

Wolverine Power Supply Cooperative, Incorporated (licensees) complies with the standards and requirements of the Atomic Energy Act of 1954, as amended (the Act), and the Comission's regulations set forth in 10 CFR Chapter 1, and all required notifications to other agencies

" or bodies have been duly made; B. Construction of Femi-2 (the facility) has been substantially com- ,

pleted in confomity with Construction Pemit No. CPPR-87 and the appli-(,-

cation, as amended, the provisions of the Act, and the regulations of the Comission; C. The facility will operate in confomity with the application, as amended, the provisions of the Act, and the regulations of the Com-mission, (except as exempted from compliance in Section 2.D below); _

D. There is reasonable essurance: (1)thattheactivitiesauthorized ,

. 7,_ < by this operating license can be conducted without endang be conducted in ctmpliance with the Comission's regulations set forth in 10 CFR Chapter I (except as exempted from compliance in Section 2.D. below);

The Detroit Edison Compan technically qualified to engage in the E.

activities authorized by this Ifcense in accordance with the Comis-sion's regulations set forth in 10 CFR Chapter I; T. Detroit Edison Company and Wolverine Power Supply Cooperative, Incor.

porated! have satisfied the applicable provisions of 10 CFR Part 140

• Financial Protection Requirements and Indemnity Agreements,' of the Comission's regulations; ne per- SWy 7arcit mten-tempany-4tv-euthor4aed4oactas-agent _.forJolver

%g; rett's , b; epeeted, :rd 5: -estbs4vomspons4114ty e4 re-t-01 Ove" he physi 9 ten t-"ttica, eptr:tten and mainteneace c'- th; f::f't-pr-

~ f E Hectiac Jonaey 30s 19(10 y % omee.sblp in teres + d toolve<in <.

in Fe c e ,L was purc ha sect Power Suppl y Cooperake , Incorporate / ,

by he Detroit Edison Compay. I

~

_ _ _ - - - _ - J

>e

+

G.^ The issuance of this license will not be inimical to the comon defense and security or to the health and safety of the pubitc; I

H. After weighing the environmental, economic technical and o'ther bene-fits of the facility against environmental and other costs and con-sidering available alternatives, the. issuance of this Facility Oper-sting License No. NPF-43, subject to the conditions for pr as Appendix B. is in accordance with 10 CFR Part 51 of the Comission's regulations and all applicable requirements have been satisfied; and

1. The receipt, possession. and use of. source, byproduct and special nu-clear material as authorized by this license will be in accordance with the Comission's regulations in 10 CFR Parts 30, 40 and 70.

2. Pursuant to approval by the Nuclear Regulatory Comission at a meeting on July 10. 1985, the License for Fuel Loading and Low Power Testing. License n No. NPF-33, issued on March 20, 1985. is superseded by Facility Operating License No. NPF-43 hereby issued to Detroit Edison Companyf and the Wolverine 1hr::

e . Power Supply Cooperative. Incorporated *(the licensees)( 4 r :d ::

. The A. lic-ent.e reads cn bilem :The license applies to Fermi-2 a boiling water nuc sociated equipment (the facility).' owned j: int?y by the Detroit Edison i::r  ;;b C::::r:ti n , h::r;;r:ted. The C'. Company ,:sf ":h :rin: facility is located in Frenchtown Township. Monroe C and is described in the licensees' ' Final Safety Analysis Report , as supplemented and amended, and in the licensees' Environmental Report.

as supplemented and amended.

-- B. Subject to the conditions and requirements incorporated herein, the Comission hereby licenses: -

e , The Detroit Edison Company (DECO). pursuant to Section 103 of

• (1) the Act and 10 CFR Part 50. to possess, use and operate the facility at the designated location in Monroe County, Michigan,

l. in accordance with the procedures and limitations set forth in this license; L r P er S;;1y C::: rativer4acorporated, t: ;:::::: The (2) f::f'ity :nd special re': - meteriel es nuclew fu:1 Ot-t4-eenyn w.4w.tten=1= b -= *aantypMichigenv=4n-::::rd::::

"+ 'ae+ h im *- "- e "'th

"-i + ?

• ia=

t y '" :-d (3)

Deco, pursuant to the Act and 10 CFR Part 70 to receive, possess and use at any time special nuclear material as reactor fuel, in accordance with the limitations for storage and amouEts required for reactor operation, as described in the Final Safety - Analysis

!. Report, as supplemented and amended; 4

A Effe ctive % uary J'o,t N o , & own e e.s hap 4 rem t of Wolve r ine. fo wer Syp ly Coyer s hbe 3 .h o rp vo #J' i.,

Fe rm; 2 was fu r eks d b y W De ho;f Ea%on Co p, j I l

[= - -- .- - - _ - _ _ _ _ - -