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{{Adams
#REDIRECT [[IR 05000295/1985020]]
| number = ML070610604
| issue date = 03/02/2007
| title = Annual Assessment Letter - Palo Verde Nuclear Generating Station (NRC Inspection Report 05000528-07-001, 05000529-07-001, and 05000530-07-001)
| author name = Mallett B
| author affiliation = NRC/RGN-IV/ORA
| addressee name = Edington R
| addressee affiliation = Arizona Public Service Co
| docket = 05000528, 05000529, 05000530
| license number = NPF-041, NPF-051, NPF-074
| contact person =
| case reference number = FOIA/PA-2007-0157
| document report number = IR-07-001
| document type = Inspection Plan, Letter
| page count = 15
}}
 
{{IR-Nav| site = 05000528 | year = 2007 | report number = 001 }}
 
=Text=
{{#Wiki_filter:rch 2, 2007
 
==SUBJECT:==
ANNUAL ASSESSMENT LETTER - PAL0 VERDE NUCLEAR GENERATING STATION (NRC INSPECTION REPORT 05000528/2007001, 05000529/2007001 , 05000530/2007001)
 
==Dear Mr. Edington:==
On February 7, 2007, the NRC staff completed its performance review of the Palo Verde Nuclear Generating Station (PVNGS). Our technical staff reviewed performance indicators for the most recent quarter and inspection results for the period from January 1 through December 31, 2006. The purpose of this letter is to inform you of our assessment of your safety performance during this period and our plans for future inspections at your facility. This performance review and enclosed inspection plan do not include physical protection information. A separate letter designated and marked as "Official Use Only - Security-Related Information" will include the physical protection review and resultant inspection plan. Overall, PVNGS, Units 1 and 2, operated in a manner that preserved public health and safety and met all cornerstone objectives with a moderate degradation in safety performance. The performance of Units 1 and 2 for the most recent quarter was within the Degraded Cornerstone column of the NRC's Action matrix based on one Yellow finding, open since the fourth quarter of 2004, in the Mitigating Systems cornerstone. The finding involved a significant section of containment sump safety injection piping that was void of water at all three Palo Verde Nuclear Generating Station units.
 
Unit 3 was also operated in a manner that preserved public health and safety. While all cornerstone objectives were also met for Unit 3, we have assessed the performance of Unit 3 to be in the Multiple/Repetitive Degraded Cornerstone column of the NRC's Action Matrix effective the fourth quarter of 2006. On February 21, 2007, the NRC staff forwarded a letter concerning the final significance determination of a White inspection finding in the Mitigating Systems cornerstone (ADAMS Reference ML070530206).
 
The inspection finding is associated with failures of the Unit 3, Train A emergency diesel generator on July 25 and September 22, 2006, which were documented in NRC Inspection Report 05000528; 05000529; 05000530/2006012 (ADAMS Reference ML063400561). The underlying performance deficiencies involved a failure to establish appropriate instructions for performing corrective maintenance activities on a K-I Arizona Public Service Company-2- relay and the failure to identify and correct the cause of erratic K-I relay operation prior to installation of the relay into the Unit 3, Train A emergency diesel generator voltage regulator circuit. In accordance with NRC Manual Chapter 0305, "Operating Reactor Assessment Program," the decision to place Unit 3 in the Multiple/Repetitive Degraded Cornerstone column was made on the basis of the definition of a Repetitive Degraded Cornerstone in that there are two separate safety significant inspection findings (one Yellow and one White) in the Mitigating Systems cornerstone and the cornerstone has been degraded for more than four quarters.
 
The Yellow finding for all three units has remained open since the fourth quarter of 2004 because problems with corrective action scope and effectiveness were identified during two NRC supplemental inspections. During the first inspection, which was conducted in late 2005, we determined that Arizona Public Service Company (APS) had performed an adequate root cause evaluation of the design control problem; however, there were a number of problems, involving corrective action scope, effectiveness, and monitoring/verification measures. During the second supplemental inspection, the onsite portion of which was completed the week of July 24, 2006, we determined that the corrective actions taken in response to the root causes and related programmatic concerns involving questioning attitude, technical rigor, and operability determinations had not been fully effective.
 
We also concluded that the performance monitoring measures (e.g., metrics) necessary to fully assess the effectiveness of the corrective actions within these areas did not take into account all the relevant data. Subsequent to this second supplemental inspection of the Yellow finding, the NRC completed two special inspections in the second half of 2006 involving the chemical fouling of the ultimate heat sink affecting all three units and an inoperable Unit 3 emergency diesel generator which resulted in the White finding discussed above. The causes of the findings associated with these inspections are similar to the findings from the supplemental inspections of the Yellow finding, as well as other performance deficiencies identified by our baseline inspections. Since 2005, APS has indicated on two occasions that the actions taken in response to the Yellow finding were sufficient to support closure of the finding. As noted above, we determined that APS's actions taken at the time of both inspections were not sufficient to support closure of the finding. In fact, APS's internal reviews conducted before each NRC inspection indicated that the finding was not ready to be closed. The lack of readiness for these supplemental inspections, the results of our second inspection of the effectiveness of the corrective actions in response to the Yellow finding and APS's progress in implementing its improvement initiatives were discussed during a public meeting on September 7, 2006. As a result of that meeting and followup reviews, APS revised its actions in response to the Yellow finding as discussed in APS's letter dated November 16, 2006 (ADAMS Reference ML063320163).
 
Because the Yellow and White findings in the Mitigating Systems cornerstone have resulted in Unit 3 being assessed in the Multiple/Repetitive Degraded Cornerstone column of the NRC's Action Matrix, additional regulatory oversight actions will be implemented at your facility. These actions could include:
(1 ) conducting supplemental inspections of the individual and collective issues; (2) issuing a confirmatory action letter to document APS's commitments stemming from its performance improvement plan (or other actions, as warranted);
and (3) conducting public meetings to discuss progress in implementing your improvement initiatives.
 
Arizona Public Service Company-3- Consistent with NRC Manual Chapter 0305, the NRC will conduct an Inspection Procedure 95001 supplemental inspection, "Inspection For One Or Two White Inputs In A Strategic Performance Area"; another followup Inspection Procedure 95002 supplemental inspection, "Inspection For One Degraded Cornerstone Or Any Three White Inputs In a Strategic Performance Area"; and an Inspection Procedure 95003, "Supplemental Inspection for Repetitive Degraded Cornerstones, Multiple Degraded Cornerstones, Multiple Yellow Inputs, or One Red Input," following notification from you on your readiness to support these inspections. The 95001 and 95002 supplemental inspections may be performed independently or as part of the 95003 inspection. The objectives of these inspections are described in detail in the individual inspection procedures, which are publicly available. For the fifth consecutive assessment letter since March 2, 2005, we have advised you of substantive crosscutting issues in the areas of human performance and problem identification and resolution. The NRC identified 25 Green findings and one example of a White finding with crosscutting aspects in the human performance area.
 
These findings involved the initiating Events, Mitigating Systems, and Occupational Radiation Safety cornerstones. Crosscutting themes were identified in the area components involving decision-making (instances of ineffective communication of decisions to personnel); resources (instances of inadequate procedures and instructions); and work practices (instances of ineffective human error prevention techniques and instances of not following procedures). Examples include: multiple instances of failing to comply with Technical Specification requirements during the process of unit startup; instances of failing to perform technically adequate operability determinations for degraded and nonconforming conditions of safety-related systems and components; instances of failing to follow procedures which resulted in consequential plant impacts; and instances of failing to use other appropriate error prevention techniques which resulted in inappropriate system configurations, as well as other unintended, consequential impacts on plant systems and components. Eleven examples of Green findings and one example of a White finding were identified in the corrective action component of the problem identification'and resolution crosscutting area. These findings involved the Mitigating Systems and Emergency Preparedness cornerstones. Crosscutting themes identified in this component involved inadequate evaluations of problems or degraded conditions and untimely implementation of corrective actions. Many of the findings involved instances of treating the symptoms rather than identifying the causes, a lack of technical rigor in assessing problems, not adequately determining the extent of the problems when they were identified, and not correcting problems. These performance deficiencies have resulted in long-standing, degraded safety-related systems and components; repetitive events and conditions; latent failures of safety-related equipment; and insufficiently controlled work instructions. Previous NRC assessments of your safety performance noted communication problems between your operations and engineering organizations, particularly with respect to evaluating problems within the context of the operability determination process. Some of the findings identified during 2006 also suggest program implementation and interface problems in other parts of the PVNGS organization (e.g. , the chemistry and maintenance organizations).
 
Arizona Public Service Company-4- During the assessment period, the NRC performed periodic inspections of your corrective actions to address both substantive crosscutting issues. Throughout 2006, the results of our inspections consistently determined that APS took some corrective actions to address these issues; however, the actions were not completely effective, were still being developed, or were only partially implemented. This is the same performance status noted in our March 2 and August 31 , 2006, assessment letters. During the September 7, 2006, meeting, we also discussed APS's progress in implementing corrective actions in response to these substantive crosscutting issues as they relate to APS's Integrated Improvement Plan.
 
In two letters dated December 8, 2006 (ADAMS Reference ML070300805 and ML070300817), APS described the actions being taken or planned to close the substantive crosscutting issues.
 
In these letters, APS also indicated it would notify the NRC of the PVNGS staff's readiness to support NRC closure of these issues. Accordingly, we will monitor your improvement efforts through the baseline inspection program and perform a detailed assessment following your notification of readiness for closure verification. These substantive crosscutting issues will remain open until we determine that your corrective actions have resulted in improved performance.
 
As described in NRC Manual Chapter 0305, following the third consecutive assessment letter identifying the same substantive crosscutting issue with the same crosscutting theme, the NRC may request that the licensee perform an assessment of its safety culture.
 
We understand that APS plans to complete an independent safety culture assessment in May 2007.
 
We request that your staff discuss the scope of this safety culture assessment with the NRC before commencing the activity. The NRC will review the results of the safety culture assessment before initiating the Inspection Procedure 95003 inspection activity. Additionally, you are requested to address the substantive crosscutting issues during the annual assessment meeting. The meeting date and discussion topics will be provided by separate correspondence. The enclosed inspection plan details the inspections, except those related to physical protection, scheduled through September 30, 2008. In addition to the baseline inspections, the NRC will be implementing Inspection Procedure 50001, "Steam Generator Replacement Inspection," relative to the planned replacement of the Unit 3 steam generators and Temporary Instruction 251 54166, "Pressurized Water Reactor Containment Sump Blockage,"
in Units 1 and 3. The NRC will also conduct the supplemental inspections that were previously discussed. The inspection plan is provided to allow for the resolution of any scheduling conflicts and personnel availability issues well in advance of inspector arrival onsite.
 
Routine resident inspections are not listed due to their ongoing and continuous nature.
 
The inspections in the last 9 months of the inspection plan are tentative and may be revised at the midcycle review.
 
In accordance with 10 CFR 2.390 of the NRC's "Rules of Practice,'' a copy of this letter and its enclosure will be made available electronically for public inspection in the NRC Public Document Room or from the Publicly Available Records (PARS) component of NRC's document system (ADAMS). ADAMS is accessible from the NRC Web site at http://www.nrc.qov/reading-rm/adams. html (the Public Electronic Reading Room).
 
Arizona Public Service Company-5- If circumstances arise which cause us to change this inspection plan, we will contact you to discuss the change as soon as possible. Please contact Rebecca Nease at (81 7) 860-8250 with any questions you may have regarding this letter or the inspection plan.
 
Sincerely, BrKe S. Mallett Regional Administrator Dockets: 50-528 50-529 50-530 Licenses:
NPF-41 NPF-51 N P F-74 Enclosure: Palo Verde Inspection/Activity Plan cc w/enclosure: Steve Olea Arizona Corporation Commission 1200 W. Washington Street Phoenix, AZ 85007 Douglas K. Porter, Senior Counsel Southern California Edison Company Law Department, Generation Resources P.O. Box 800 Rosemead, CA 91770 Chairman Maricopa County Board of Supervisors 301 W. Jefferson, 10th Floor Phoenix, AZ 85003 Aubrey V. Godwin, Director Arizona Radiation Regulatory Agency 4814 South 40 Street Phoenix, AZ 85040 Scott Bauer, Acting General Manager Regulatory Affairs and Palo Verde Nuclear Generating Station Mail Station 7636 P.O. Box 52034 Phoenix, AZ 85072-2034 Performance Improvement Jeffrey T. Weikert Assistant General Counsel El Paso Electric Company Mail Location 167 123 W. Mills El Paso, TX 79901 John W. Schumann Los Angeles Department of Water & Power Southern California Public Power Authority P.O. Box 51 11 1, Room 1255-C Los Angeles, CA 90051 -01 00 Arizona Public Service Company-6- John Taylor Public Service Company of New Mexico 2401 Aztec NE, MS Z110 Albuquerque, NM 871 07-4224 Geoffrey M. Cook Southern California Edison Company 5000 Pacific Coast Hwy, Bldg. N50 San Clemente, CA 92672 Robert Henry Salt River Project 6504 East Thomas Road Scottsdale, AZ 85251 Brian Almon Public Utility Commission William B. Travis Building P.O. Box 13326 1701 North Congress Avenue Austin, TX 78701 -3326 Karen O'Regan Environmental Program Manager City of Phoenix Office of Environmental Programs 200 West Washington Street Phoenix, AZ 85003 Matthew Benac Assistant Vice President Nuclear & Generation Services El Paso Electric Company 340 East Palm Lane, Suite 310 Phoenix, AZ 85004 Chief, Radiological Emergency Oakland Field Office Chemical and Nuclear Preparedness Department of Homeland Security 11 11 Broadway, Suite 1200 Oakland, CA 94607-4052 Preparedness Section and Protection Division Louis Trammel, Director Arizona Division of Emergency Management 5636 East McDowell Road Building 101 Phoenix, AZ 85008-3495 Nancy Ward, Regional Director Federal Emergency Management Agency Region IX 11 11 Broadway, Suite 1200 Oakland, CA 94607-4052 The Honorable Marie Lopez-Rogers Mayor of Avondale 1 1465 W. Civic Center Drive, Suite 280 Avondale, AZ 85323 The Honorable Bobby Bryant Mayor of Buckeye 100 North Apache Road Buckeye, AZ 85326 The Honorable Fred Waterman Mayor of El Mirage P.O. Box26 El Mirage, AZ 85335 The Honorable Elaine Scruggs Mayor of Glendale 5850 West Glendale Avenue Glendale, AZ 85301 The Honorable James M. Cavanaugh Mayor of Goodyear 11 9 North Litchfield Road Goodyear, AZ 85338 The Honorable Tom Shoaf Mayor of Litchfield 244 West Wigwam Blvd. Litchfield Park, AZ 85340 The Honorable John Keegan Mayor of Peoria 8401 West Monroe Street Peoria, AZ 85345 Arizona Public Service Company-7- The Honorable Phil Gordon Mayor of Phoenix Phoenix City Hall 200 West Washington Phoenix, AZ 85007 The Honorable Joan Shafer Mayor of Surprise 12425 West Bell Road Surprise, AZ 85374 The Honorable Adolfo Gamez Mayor of Tolleson 9555 West Van Buren Street Tolleson, AZ 85353 The Honorable Michael LeVault Mayor of Youngtown 12030 Clubhouse Square Youngtown, AZ 85363 Robin Berry Palo Verde School District P.O. Box 108 Palo Verde, AZ 85343 Chad Turner, Superintendent Arlington Elementary 941 0 S. 355th Avenue Arlington, AZ 85322 School District Carter Gable Arlington Canal Company P.O. Box 150 Arlington, AZ 85322 Doris Heisler Tonopah Valley Association 3002 N. 423rd Avenue Tonopah, AZ 85354 Lyle King Buckeye Farmer P.O. Box 224 Buckeye, AZ 85322 Chris Larson Arlington CATS Club P.O. Box 194 Arlington, AZ 85322 Grace Molina Arlington Hispanic Community 910 n. 343rd Avenue Tonopah, AZ 85354 Les Meredith Arlington Lions Club P.O. Box 69 Arlington, AZ 85322 Pam Miller HC03 Box 85 Palo Verde, AZ 85343 Neil Peters P.O. Box 57 Arlington, AZ 85322 Paul Roetto Friends of Saddle Mountain 3708 N. 339th Avenue Tonopah, AZ 85354 Roxanne Morris Ruth Fisher Unified School District 38201 W. Indian School Road Tonopah, AZ 85354 Judy Shaw 20 N. 350th Avenue Tonopah, AZ 85354 Robert Hathaway TVCC 37705 W. Buckeye Road Tonopah, AZ 85354 Jack Arend Tonopah Valley Community Council P.O. Box 874 Tonopah, AZ 85354 Arizona Public Service Company -8- Melba Jury 33228 W. Sunland Avenue Tonopah, AZ 85354 Andy Jacobs Office of U.S. Senator Jon Kyl 2200 E. Camelback Road, Suite 120 Phoenix, AZ 8501 6 Carlos Sierra Office of U.S. Senator John McCain 5353 North 16th Street, Suite 105 Phoenix, AZ 8501 6 Ruben H. Reyes, District Director Office of U.S. Congressman Raul Grijalva 81 0 E. 22nd Street, Suite 102 Tucson, AZ 85713 Sheriff Joe Arpaio 100 West Washington, Suite 1900 Phoenix, AZ 85003 Fulton Brock, Supervisor, District 1 Board of Supervisors 301 W. Jefferson Phoenix, AZ 85003 Don Stapley, Supervisor, District 2 Board of Supervisors 301 W. Jefferson Phoenix, AZ 85003 Andrew Kunasek, Supervisor, District 3 Board of Supervisors 301 W. Jefferson Phoenix, AZ 85003 Max W. Wilson, Supervisor, District 4 Board of Supervisors 301 W. Jefferson Phoenix, AZ 85003 State Representative Manuel V. Alvarez Arizona House of Representatives 1700 W. Washington Room 129 Phoenix, AZ 85007 State Senator Marsha Arzberger Arizona Senate 1700 W. Washington Room 213 Phoenix, AZ 85007 Institute of Nuclear Power Operations (INPO) Records Center 700 Galleria Parkway SE, Suite 100 Atlanta, GA 30339 Mary Rose Wilcox, Supervisor, District 5 Board of Supervisors 301 W. 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Regional Administrator (BSMI) DRP Director (ATH) DRS Director (DDC) DRS Deputy Director (RJCI) Senior Resident Inspector (GXWZ) Branch Chief, DRP/D (RLNI) Senior Project Engineer, DRP/D (GEW) Team Leader, DRP/TSS (FLB2) RlTS Coordinator (MSH3) V. Dricks, PA0 (VLD) W. Maier, RSLO (WAM) L. Owen, RA Secretary (LAO) DRS Branch Chiefs (WBJ, ATG, LJS, MPSI) C. Miller, Chief, TRPS, OED0 (CGM) S. Richards, Deputy Director, DIRS, NRR (SAR) J. Lubinski, Deputy Director, DORL, NRR (JWL) C. Haney, Director, DORL, NRR (CXH) D. Terao, Chief, PLB IV, DORL, NRR (DXT) M. Fields, NRR Project Manager (MBFI) RidsNrrDirslpab@,nrc.qov ROPreDorts@nrc.aov SUNS1 Review Completed: -rln- ADAMS: Yes Initials: -ath ta Publicly Available Non-Publicly Available Sensitive (XI Non-Sensitive No BSMallett
/RA/ I 3/2/07 OFFICIAL RECORD COPY T=Telephone E=E-mail F=Fax
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