ML110880064

Submittal of American Nuclear Insurers Aggregate Shutdown Credit Return Premium

ML110880064
Person / Time
Site:	Oconee, McGuire, Mcguire
Issue date:	03/24/2011
From:	Glover R Duke Energy Carolinas
To:	Document Control Desk, Office of Nuclear Reactor Regulation
References
Download: ML110880064 (8)

Text

R. Michael Glover Duke General Manager, NuclearSupport Energy. Nuclear Generation Duke Energy Corporation 526 South Church Street Charlotte, NC 28202 Mailing Address:

P. O. Box 1006 ECO7H Charlotte, NC 28201-1006 704-382-6108 March 24, 2011 Mike.Glover@duke-energy.com U. S. Nuclear Regulatory Commission Attn: Document Control Desk Washington, DC 20555-0001

Subject:

Duke Energy Carolinas, LLC (Duke Energy)

Oconee Nuclear Station, Units 1, 2, and 3, Docket Nos. 50-269, 50-270, 50-287 McGuire Nuclear Station, Units 1 and 2, Docket Nos. 50-369, 50-370 American Nuclear Insurers (ANI) Aggregate Shutdown Credit Return Premium

Reference:

Letter from Marsh USA, Inc. to Mr. Ira Dinitz, NRC, 2010 Nuclear Energy Liability Endorsements,dated February 1, 2010.

Pursuant to 10 CFR 140.15(e), Marsh USA Inc. (Reference) submitted certified copies of liability insurance policy endorsements effective January 1, 2010 to formally document that Duke Energy is maintaining financial protection requirements through the continuation of the American Nuclear Insurers / Nuclear Energy Liability Policies.

Attached are notices from Marsh USA Inc. to Duke Energy concerning ANI Aggregate Shutdown Credit Return Premiums for Oconee and McGuire along with copies of the amended endorsements to the following Facility Forms:

• Endorsement # 186 to Oconee Facility Form (NF-0182)

" Endorsement # 142 to McGuire Facility Form (NF - 0248)

This letter contains no new commitments.

Please contact L. B. Jones at 704 382-4753 or Luellen.Jones(,duke-enerqy.com for any questions.

Sincerely, R. Michael Glover General Manager, Nuclear Support :

Oconee Nuclear Station ANI Aggregate Shutdown Credit Return Premium :

McGuire Nuclear Station ANI Aggregate Shutdown Credit Return Premium www.duke-energy.com 0 "ý -

U. S. Nuclear Regulatory Commission March 24, 2011 Page 2 xc:

V. M. McCree, Region II Administrator U.S. Nuclear Regulatory Commission Marquis One Tower 245 Peachtree Center Ave., NE Suite 1200 Atlanta, Georgia 30303-1257 I. P. Dinitz, Insurance Indemnity Specialist 11555 Rockville Pike Mail Stop 0-12 D3 Rockville, MD 20852-2738 J. F. Stang, Jr., Senior Project Manager (ONS)

U.S. Nuclear Regulatory Commission 11555 Rockville Pike Mail Stop 0-8 G9A Rockville, MD 20852-2738 J. H. Thompson, Project Manager (MNS)

U. S. Nuclear Regulatory Commission 11555 Rockville Pike Mail Stop 0-8 G9A Rockville, MD 20852-2738 A. T. Sabisch NRC Senior Resident Inspector Oconee Nuclear Station J. B. Brady NRC Senior Resident Inspector McGuire Nuclear Station

Attachment 1 Timothy K. Fischer, CPCU, ARM Assistant Vice President Marsh USA Inc.

100 North Tryon Street Suite 3200 Charlotte, NC 28202

+1 704 374 8210 timothy.k.fischer@marsh.com www.marsh.com Mr. Mark A. Webster, CPCU Manager - Liability & Financial Insurance Duke Energy Corporation Duke Energy Center 550 S. Tryon Street, DEC40-C Charlotte, NC 28202 March 10, 2011

Subject:

Oconee Nuclear Station ANI Aggregate Shutdown Credit Return Premium

Dear Mark,

Enclosed, please find the revised ADVANCE PREMIUM AND STANDARD PREMIUM ENDORSEMENT and rating sheets for Calendar Year 2010, endorsement #186 to Oconee's Facility Form Policy (NF- 0182), due to Unit 1's outage 10/10/2009 - 12/02/2009, and Unit 2's outage 4/26/2010 - 5/28/2010.

You will find the return premium check for $5.018 included within this correspondence.

As previously discussed, ANI will only apply the credit to the 2010 shutdown since they have already finalized their 2009 finances, but they have agreed to Marsh's request to acknowledge the 2009 outage in order to satisfy ANI's multi-site shutdown credit criteria.

Marsh will continue to monitor each of Duke's reactor sites for similar opportunities.

As requested by Duke, we have also enclosed the certified copy of the endorsement. Please forward this copy to Mr. Ira Dinitz at the NRC in accordance with 10 CFR 140.15(e).

Please do not hesitate to contact me at (704) 374-8210 or any of my nuclear colleagues should you have any questions. Thank you for allowing Marsh to service your nuclear brokerage needs.

Regards, Timothy K. Fischer, CPCU, ARM Assistant Vice President

MARSH Page 2 March 10, 2011 Mr. Mark A. Webster, CPCU Duke Energy Corporation Copy: B. Knowles, M. Fishbaugh, S. Moyer, G. Visor, I. Dinitz Enclosure

NUCLEAR ENERGY LIABILITY INSURANCE NUCLEAR ENERGY LIABILITY INSURANCE ASSOCIATION ADVANCE PREMIUM AND STANDARD PREMIUM ENDORSEMENT CALENDAR YEAR 2010 It is agreed that Items 1 and 2 of Endorsement No. 182 are amended to read:

1. ADVANCE PREMIUM: It is agreed that the Advance Premium due the companies for the period designated above is: $1,236,721.00

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: $949,073.00 RETURN PREMIUM: $5,018.00 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.

GarYr iSNCChC ViCe residen - Underwriting AmericaNuclerIsrr Effective Date of this Endorsement: January 1,2010 To form a part of Policy No. NF -0182 (12:01 A.M. Standard Time)

Issued To: Duke Energy Carolinas, LLC Date of Issue: February 21, 2011 For the subscribing companies By a, . ,.

61 e" President W.41  %

Endorsement No: 186 Countersigned by .

CERTIFIED COPY NE-36

Attachment 2 Eugina A Visor, ARM Nuclear Client Advisor Marsh USA Inc.

100 North Tryon Street Suite 3200 Charlotte, NC 28202 704 374 8241 Eugina.A.Visor@marsh.com www.marsh.com Mr. Mark A. Webster, ARM Manager Liability & Financial Insurance Global Risk Management and Insurance Duke Energy Center PO Box 1321, DEC40-C Charlotte, NC 28201-2801 February 23, 2011

Subject:

McGuire Nuclear Station Units 1 & 2 ANI Aggregate Shutdown Credit Return Premium

Dear Mark,

Enclosed, please find the revised ADVANCE PREMIUM AND STANDARD PREMIUM ENDORSEMENT, certified endorsement, and rating sheet for Calendar Year 2010 for McGuire, endorsement #142 to McGuire's Facility Form Policy (NF - 0248), due to Unit l's outage 3/14/2010-4/16/2010 and Unit 2's outage 09/05/2009-10/09/2009. Of note, ANI has closed their books for the 2009 calendar year, so only Unit l's outage was applied. This was a concession made by Marsh during our negotiations with ANI to extend a shutdown credit to multi-unit sites.

As previously indicated, we have successfully lobbied ANI to extend a shutdown credit to multi-unit sites based on an aggregate shutdown period in excess of 60 days (with each unit's outage having been greater than 30 days to qualify). Marsh will continue to monitor each of Duke's reactor sites for similar opportunities.

You will find the return premium check for $8,495 included within this correspondence. We have verified the return premium and find all to be in order.

We have enclosed the certified copy of this endorsement, please forward to Mr. Ira Dinitz at the NRC in accordance with 10 CFR 140.15(e).

Please do not hesitate to contact me at (704) 374-8241 or any of my nuclear colleagues should you have any questions. Thank you for allowing Marsh to service your nuclear brokerage needs.

Regards, Eugina Visor, ARM Client Advisor

MARSH Page 2 February 24, 2011 Mr. Mark Webster Duke Energy Carolinas, LLC Copy: M. Fishbaugh, S. Moyer, T. Fischer Enclosure

NUCLEAR ENERGY LIABILITY INSURANCE NUCLEAR ENERGY LIABILITY INSURANCE ASSOCIATION ADVANCE PREMIUM AND STANDARD PREMIUM ENDORSEMENT CALENDAR YEAR 2010 It is agreed that Items 1 and 2 of Endorsement No. 139 are amended to read:

1. ADVANCE PREMIUM: It is agreed that the Advance Premium due the companies for the period designated above is: $1,564,752.00

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: $1,200,974.00 RETURN PREMIUM: $8,495.00 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.

i.neures -

Gary S. chio, Vice President - Underwriting Americ~a uclear Insurers Effective Date of this Endorsement: January 1, 2010 To form a part of Policy No. NF -0248 (12:01 A.M. Standard Time)

Issued To: Duke Energy Carolinas, LLC Date of Issue: February 4, 2011 For the subscribing companies By Presi.den President

• y  %

Endorsement No: 142 Countersigned by CERTIFIED COPY NE-36