ML17240A069

James A. FitzPatrick Nuclear Power Plant-Nonproprietary LTR with Order Approving Direct Transfer of Renewed Facility Operating License & Independent Spent Fuel Storage Installation General License & Conforming Amendment (CAC MG0014; EPID L-

ML17240A069
Person / Time
Site:	FitzPatrick
Issue date:	11/07/2017
From:	Booma Venkataraman Plant Licensing Branch 1
To:	Bryan Hanson Exelon Generation Co, Exelon Nuclear
Venkataraman B, NRR/DORL/LPL1
Shared Package
ML17240A045	List: ML17240A048 ML17240A069 NRC-2017-0177, FRN Order Approving Direct Transfer of Renewed Facility Operating License and Independent Spent Fuel Storage Installation General License and Conforming Amendment
References
CAC MG0014, EPID L-2017-LLM-0004
Download: ML17240A069 (28)

Text

OFFICIAL USE ONLY PROPRIETARY INFORMATION UNITED STATES NUCLEAR REGULATORY COMMISSION WASHINGTON, D.C. 20555-0001 Mr. Bryan C. Hanson Senior Vice President Exelon Generation Company, LLC President and Chief Nuclear Officer Exelon Nuclear 4300 Winfield Road Warrenville, IL 60555 November 7, 2017

SUBJECT:

JAMES A. FITZPATRICK NUCLEAR POWER PLANT-ORDER APPROVING DIRECT TRANSFER OF RENEWED FACILITY OPERATING LICENSE AND INDEPENDENT SPENT FUEL STORAGE INSTALLATION GENERAL LICENSE AND CONFORMING AMENDMENT (CAC NO. MG0014; EPID L-2017-LLM-0004)

Dear Mr. Hanson:

The U.S. Nuclear Regulatory Commission (NRC) staff has completed its review of the application dated July 24, 2017 (Agencywide Documents Access and Management System (ADAMS) Accession No. ML 17206A395). In the application, Exelon Generation Company, LLC, and its wholly owned subsidiary, Exelon FitzPatrick, LLC (collectively, the "Applicants"), requested written consent approving the transfer of the James A. FitzPatrick Nuclear Power Plant (FitzPatrick) Renewed Facility Operating License No. DPR-59 and the generally licensed FitzPatrick Independent Spent Fuel Storage Installation from Exelon Generation Company, LLC to Exelon FitzPatrick, LLC. The Applicants also requested that the NRC approve a conforming amendment to the license to reflect this transfer. Portions of the licensee's application dated July 24, 2017, contain proprietary information. Accordingly, the NRC has withheld those from public disclosure pursuant to Section 2.390 of Title 1 O of the Code of Federal Regulations ( 10 CFR). Enclosure 1 is the Order that, pursuant to Sections 50.80 and 50.90 of Title 10 of the Code of Federal Regulations, approves the proposed direct transfer of ownership, subject to the condition described therein, and approves the enclosed conforming license amendment, which will be issued and made effective at the time the transfer is completed. Enclosure 2 is the conforming license amendment. Enclosure 3 is the proprietary version of the NRC staff's safety evaluation (SE) related to the preceding actions. Enclosure 4 is the nonproprietary version of the NRC staff's SE. The nonproprietary SE will be placed in the NRC public document room and added to the ADAMS Publicly Available Records System Library. Enclosure 3 contains Proprietary Information. When separated from Enclosure 3, this letter is DECONTROLLED. OFFICIAL USE ONLY PROPRIETARY INFORMATION OFFICIAL USE ONLY PROPRIETARY INFORMATION B. Hanson The Order has been forwarded to the Office of the Federal Register for publication. Docket Nos. 50-333 and 72-012

Enclosures:

1. Order 2. Conforming License Amendment to DPR-59 3. Safety Evaluation (proprietary) 4. Safety Evaluation (nonproprietary) cc w/Enclosures 1, 2, and 4 via Listserv Sincerely, Booma Venkataraman, Project Manager Plant Licensing Branch I Division of Operating Reactor Licensing Office of Nuclear Reactor Regulation OFFICIAL USE ONLY PROPRIETARY INFORMATION ENCLOSURE 1 ORDER APPROVING APPLICATION REGARDING DIRECT TRANSFER OF JAMES A. FITZPATRICK NUCLEAR POWER PLANT RENEWED FACILITY OPERATING LICENSE AND INDEPENDENT SPENT FUEL STORAGE INSTALLATION GENERAL LICENSE FROM EXELON GENERATION COMPANY, LLC TO EXELON FITZPATRICK, LLC AND CONFORMING LICENSE AMENDMENT UNITED STATES OF AMERICA NUCLEAR REGULATORY COMMISSION In the Matter of EXELON GENERATION COMPANY, LLC EXELON FITZPATRICK, LLC James A. FitzPatrick Nuclear Power Plant Docket Nos. 50-333 and 72-012 License No. DPR-59 ORDER APPROVING DIRECT TRANSFER OF LICENSE AND APPROVING CONFORMING AMENDMENT I. Exelon Generation Company, LLC (Exelon Generation) is the owner and operator of the James A. FitzPatrick Nuclear Power Plant (FitzPatrick) and the holder of Renewed Facility Operating License No. DPR-59 and the general license for the FitzPatrick Independent Spent Fuel Storage Installation (ISFSI). FitzPatrick is a General Electric boiling-water reactor located in Oswego County, New York. 11. By application dated July 24, 2017 (Agencywide Documents Access and Management System (ADAMS) Accession No. ML 17206A395), Exelon Generation, and its wholly owned subsidiary, Exelon FitzPatrick, LLC (Exelon FitzPatrick), jointly requested, pursuant to Title 1 O of the Code of Federal Regulations (1 O CFR), Section 50.80, "Transfer of licenses," that the U.S. Nuclear Regulatory Commission (NRC) consent to the direct transfer of the FitzPatrick renewed facility operating license and the FitzPatrick ISFSI general license from Exelon Generation to Exelon FitzPatrick. Future references to FitzPatrick include the general license for the FitzPatrick ISFSI. In response to the request by Exelon Generation and Exelon FitzPatrick for consent to the direct transfer of the FitzPatrick renewed facility operating license and the FitzPatrick ISFSI general license, the NRC published a notice entitled, "James A FitzPatrick Nuclear Power Plant; Consideration of Approval of Transfer of License and Conforming Amendment," in the Federal Register on August 17, 2017 (82 FR 39139). The NRC received no comments and no hearing requests. Under 10 CFR 50.80, no license, or any right thereunder, shall be transferred, directly or indirectly, through transfer of control of the license, unless the NRC gives its consent in writing. Upon review of the information in the application, and other information before the NRC, and relying upon the representations and agreements contained in the application, the NRC staff has determined that Exelon FitzPatrick is qualified to hold the FitzPatrick renewed facility operating license and the FitzPatrick ISFSI general license. Following completion of the license transfer, Exelon FitzPatrick would acquire ownership of FitzPatrick. Exelon Generation would continue to be responsible for the operation and maintenance of FitzPatrick. The NRC staff has also determined that the transfer of these licenses is otherwise consistent with the applicable provisions of law, regulations, and orders issued by the NRC, pursuant thereto, subject to the condition set forth below. Upon review of the application for a conforming license amendment to reflect this transfer, the NRC staff has determined that the application for the conforming license amendment complies with the standards and requirements of the Atomic Energy Act of 1954, as amended (the Act), and the Commission's rules and regulations set forth in 1 O CFR chapter I; the facility will operate in conformity with the application, the provisions of the Act, and the rules and regulations of the Commission; there is reasonable assurance that the activities authorized by this amendment can be conducted without endangering the health and safety of the public and that such activities will be conducted in compliance with the Commission's regulations; the issuance of this amendment will not be inimical to the common defense and security or to the health and safety of the public; and the issuance of this amendment will be in accordance with 1 O CFR Part 51 of the Commission's regulations and all applicable requirements will have been satisfied. The findings set forth above are supported by an NRC safety evaluation dated November 7, 2017 (ADAMS Accession No. ML 17240A069). Ill. Accordingly, pursuant to Sections 161 b, 161 i, 161 o, and 184 of the Atomic Energy Act of 1954, as amended (the Act), 42 USC§§ 2201 (b), 2201 (i), 2201 (o), and 2234; and 10 CFR 50.80, IT IS HEREBY ORDERED that the application regarding the proposed direct license transfer is approved, subject to the following condition: Prior to the completion of the license transfer, Exelon FitzPatrick, LLC shall provide satisfactory documentary evidence to the Director of the Office of Nuclear Reactor Regulation that it has obtained the appropriate amount of insurance required of a licensee under 10 CFR Part 140 and 10 CFR 50.54(w). IT IS FURTHER ORDERED that, consistent with 10 CFR 2.1315(b), the license be changed, as indicated in Enclosure 2 to the cover letter forwarding this Order, to conform the license to reflect that the subject direct license transfer is approved. The amendment shall be issued and made effective at the time the proposed direct license transfer is completed. IT IS FURTHER ORDERED that, after receipt of all required regulatory approvals of the proposed direct license transfer, Exelon FitzPatrick shall inform the Director of the Office of Nuclear Reactor Regulation in writing of such receipt, and of the date of closing of the transfer, no later than 2 business days prior to the date of the closing of the direct license transfer. Should the proposed direct license transfer not be completed within 1 year of this Order's date of issuance, this Order shall become null and void, provided, however, upon written application and for good cause shown, such date may be extended by order. This Order is effective upon issuance. For further details with respect to this Order, see the application dated July 24, 2017, and the NRC's nonproprietary Safety Evaluation dated November 7, 2017 (ADAMS Accession No. ML 17240A069), which are available for public inspection at the Commission's Public Document Room (PDR), located at One White Flint North, Public File Area 01 F21, 11555 Rockville Pike (first floor), Rockville, Maryland. Publicly available documents created or received at the NRC are accessible electronically through ADAMS in the NRC Library at http://www.nrc.gov/reading-rm/adams.html. Persons who do not have access to ADAMS, or who encounter problems in accessing the documents located in ADAMS, should contact the NRC PDR reference staff by telephone at 1-800-397-4209 or 301-415-4737, or by e-mail to pd r. resource@ nrc. gov. Dated at Rockville, Maryland, this 7th day of November 2017. FOR THE NUCLEAR REGULATORY COMMISSION Michele G. Evans, Deputy Director for Reactor Safety Programs and Mission Support, Office of Nuclear Reactor Regulation.

ENCLOSURE 2 CONFORMING LICENSE AMENDMENT TO RENEWED FACILITY OPERATING LICENSE NO. DPR-59 JAMES A. FITZPATRICK NUCLEAR POWER PLANT TO REFLECT DIRECT LICENSE TRANSFER FROM EXELON GENERATION COMPANY, LLC TO EXELON FITZPATRICK, LLC UNITED STATES NUCLEAR REGULATORY COMMISSION WASHINGTON, D.C. 20555-0001 EXELON GENERATION COMPANY. LLC DOCKET NO. 50-333 JAMES A. FITZPATRICK NUCLEAR POWER PLANT AMENDMENT TO RENEWED FACILITY OPERATING LICENSE Amendment No. License No. DPR-59 1. The U.S. Nuclear Regulatory Commission (the Commission) has found that: A. The application for amendment by Exelon Generation Company, LLC, and its wholly owned subsidiary, Exelon FitzPatrick, LLC (collectively, the Applicants), dated July 24, 2017, complies with the standards and requirements of the Atomic Energy Act of 1954, as amended (the Act), and the Commission's rules and regulations set forth in 10 CFR Chapter I; B. The facility will operate in conformity with the application, the provisions of the Act, and the rules and regulations of the Commission; C. There is reasonable assurance (i) that the activities authorized by this amendment can be conducted without endangering the health and safety of the public, and (ii) that such activities will be conducted in compliance with the Commission's regulations; D. The issuance of this amendment will not be inimical to the common defense and security or to the health and safety of the public; and E. The issuance of this amendment is in accordance with 1 O CFR Part 51 of the Commission's regulations and all applicable requirements have been satisfied. 2. Accordingly, the license is amended by changes as indicated in the attachment to this license amendment. 3. This license amendment is effective as of its date of issuance and shall be implemented within 30 days from the date of issuance.

Attachment:

Changes to Renewed Facility Operating License No. DPR-59 Date of Issuance: FOR THE NUCLEAR REGULATORY COMMISSION Michele G. Evans, Deputy Director for Reactor Safety Programs and Mission Support Office of Nuclear Reactor Regulation.

ATTACHMENT TO LICENSE AMENDMENT NO. JAMES A. FITZPATRICK NUCLEAR POWER PLANT RENEWED FACILITY OPERATING LICENSE NO. DPR-59 DOCKET NO. 50-333 Replace the following pages of the renewed facility operating license with the attached revised pages. The revised pages are identified by amendment number and contain marginal lines indicating the areas of change. Remove Page 1 2 7 8 Insert Page 1 2 7 8 EXELON FITZPATRICK, LLC AND EXELON GENERATION COMPANY, LLC DOCKET NO. 50-333 JAMES A. FITZPATRICK NUCLEAR POWER PLANT RENEWED FACILITY OPERATING LICENSE Renewed License No. DPR-59 1. The Nuclear Regulatory Commission (NRC or the Commission), having previously made the findings set forth in Facility Operating License No. DPR-59, dated November 21, 2000, has found that: A. The application to renew Facility Operating License No. DPR-59 filed by Exelon Generation Company, LLC and Exelon FitzPatrick, LLC (the licensees), complies with the standards and requirements of the Atomic Energy Act of 1954, as amended (the Act), and the Commission's rules and regulations set forth in 10 CFR Chapter I, and all required notifications to other agencies or bodies have been duly made; B. The facility will operate in conformity with the application, the provisions of the Act, and the rules and regulations of the Commission; C. Actions have been identified and have been or will be taken with respect to: (1) managing the effects of aging on the functionality of structures and components that have been identified to require review under 10 CFR 54.21 (a)(1) during the period of extended operation, and (2) time-limited aging analyses that have been identified to require review under 10 CFR 54.21 (c), such that there is reasonable assurance that the activities authorized by this renewed operating license will continue to be conducted in accordance with the current licensing basis, as defined in 10 CFR 54.3 for the facility, and that any changes made to the facility's current licensing basis in order to comply with 10 CFR 54.29(a) are in accordance with the Act and the Commission's regulations; D. There is reasonable assurance (i) that the activities authorized by this renewed operating license can be conducted without endangering the health and safety of the public, and (ii) that such activities will be conducted in compliance with the Commission's regulations; E. Exelon FitzPatrick, LLC ("Exelon FitzPatrick") and Exelon Generation Company, LLC ("Exelon Generation Company) are financially and technically qualified to engage in the activities authorized by this renewed operating license; F. Exelon FitzPatrick and Exelon Generation Company have satisfied the applicable provisions of 10 CFR Part 140, "Financial Protection Requirements and Indemnity Agreements," of the Commission's regulations; G. The issuance of this renewed operating license will not be inimical to the common defense and security or to the health and safety of the public; Amendment Renewed License No. DPR-59 H. The receipt, possession, and use of source, byproduct, and special nuclear material as authorized by this renewed operating license will be in accordance with the Commission's regulations; in 10 CFR Parts 30, 40, and 70, including 10 CFR Sections 30.33, 40.32, 70.23, and 70.31; and I. The issuance of this renewed operating license is in accordance with10 CFR Part 51 of the Commission's regulations and all applicable requirements have been satisfied. 1. Accordingly, Facility Operating License No. DPR-59 (previously issued to the Power Authority of the State of New York and Niagara Mohawk Power Corporation pursuant to the Atomic Safety and Licensing Board's Initial Decision and Supplemental Initial Decision dated November 12, 1973, and January 10, 1974, respectively; and the Atomic Safety and Licensing Appeal Board's Decision dated January 29, 197 4) as previously amended and transferred to Entergy Nuclear FitzPatrick, LLC (ENF) and Entergy Nuclear Operations, Inc. (ENO) dated November 21, 2000, is superseded by Renewed Facility Operating License No. DPR-59, hereby issued to Exelon FitzPatrick and Exelon Generation Company to read as follows: A. This renewed operating license applies to the James A. FitzPatrick Nuclear Power Plant, a boiling water nuclear reactor and associated equipment (the facility), owned by Exelon FitzPatrick and operated by Exelon Generation Company (collectively, the licensees). The facility is located in Scriba, Oswego County, New York, and is described in the "Final Safety Analysis Report," as supplemented and amended, and the Environmental Report, as supplemented and amended. B. Subject to the conditions and requirements incorporated herein, the Commission hereby licenses: (1) Pursuant to Section 104b of the Act and 10 CFR Part 50, "Licensing of Production and Utilization Facilities," (a) Exelon FitzPatrick as the owner to possess and (b) Exelon Generation Company as the operator to possess, use, and operate the facility at the designated location in Scriba, Oswego County, New York, in accordance with the procedures and limitations set forth in this renewed operating license; (2) Exelon Generation Company pursuant to the Act and 1 O 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 amounts required for reactor operation, as described in the Final Safety Analysis Report, as supplemented and amended; (3) Exelon Generation Company pursuant to the Act and 10 CFR Parts 30, 40, and 70, to receive, possess, and use, at any time, any byproduct, source, and special nuclear material as sealed neutron sources for reactor startup, sealed sources for reactor instrumentation and radiation monitoring equipment calibration, and as fission detectors in amounts as required; Amendment Renewed License No. DPR-59 N. DELETED 0. DELETED P. For purposes of ensuring public health and safety, Exelon Generation Company, upon the transfer of this license to it, and upon transfer of decommissioning funds from ENF to Exelon Generation Company shall provide decommissioning funding assurance for the facility, to be held in a decommissioning trust fund for the facility by the prepayment or equivalent method, of no less than the amount required under NRC regulations at 1 O CFR 50. 75. Any amount held in any decommissioning trust maintained by Exelon Generation Company for the facility after the transfer of the facility license to Exelon Generation Company may be credited towards the amount required under this paragraph. Q. Exelon Generation Company shall take all necessary steps to ensure that the decommissioning trust is maintained in accordance with the application for the transfer of this license to Exelon Generation Company, and the requirements of the order approving the transfer and order approving the transfer of decommissioning funds from PASNY to Entergy Nuclear Operations, Inc., and consistent with the safety evaluations supporting such orders. R. Mitigation Strategy License Condition Develop and maintain strategies for addressing large fires and explosions and that include the following key areas: (a) Fire fighting response strategy with the following elements: 1. Pre-defined coordinated fire response strategy and guidance 2. Assessment of mutual aid fire fighting assets 3. Designated staging areas for equipment and materials 4. Command and control 5. Training of response personnel (b) Operations to mitigate fuel damage considering the following: 1. Protection and use of personnel assets 2. Communications 3. Minimizing fire spread 4. Procedures for implementing integrated fire response strategy 5. Identification of readily-available pre-staged equipment 6. Training on integrated fire response strategy 7. Spent fuel pool mitigation measures (c) Actions to minimize release to include consideration of: 1. Water spray scrubbing 2. Dose to onsite responders Amendment Renewed License No. DPR-59 S. The licensee shall implement and maintain all Actions required by Attachment 2 to NRC Order EA-06-137, issued June 20, 2006, except the last action that requires incorporation of the strategies into the site security plan, contingency plan, emergency plan and/or guard training and qualification plan, as appropriate. T. License Renewal -UFSAR supplement submitted pursuant to 10 CFR 54.21 (d), as revised during the license renewal application review process, and as supplemented by Appendix A of NUREG-1905, "Safety Evaluation Report Related to the License Renewal of James A. FitzPatrick Nuclear Power Plant," dated April 2008, describes certain programs to be implemented and activities to be completed prior to the period of extended operation (PEO). a. The licensee shall implement those new programs and enhancements to existing programs no later than the PEO date. b. The licensee shall complete those inspection and testing activities by the PEO date. The licensee shall notify the NRC in writing within 1 O days after having accomplished item (a) above and include the status of those activities that have been or remain to be completed in item (b) above. U. UFSAR Supplement Changes -The UFSAR supplement, as revised, submitted pursuant to 10 CFR 54.21 (d), shall be included in the next scheduled update to the UFSAR required by the 10 CFR 50.71 (e)(4) following the issuance of this renewed operating license. Until that update is complete, Exelon Generation Company may make changes to the programs and activities described in the supplement without prior Commission approval, provided that Exelon Generation Company evaluate such changes pursuant to the criteria set forth in 10 CFR 50.59 and otherwise complies with the requirements in that section. V. Capsule withdrawal schedule -All capsules in the reactor vessel that are removed and tested must meet the test procedures and reporting requirements of the most recent NRG-approved version of the Boiling Water Reactor Vessel and Internals Project (BWRVIP) Integrated Surveillance Program (ISP) appropriate for the configuration of the specimens in the capsule. Any changes to the capsule withdrawal schedule, including spare capsules, must be approved by the NRC prior to implementation. All capsules placed in storage must be maintained for future insertion. Any changes to storage requirements must be approved by the NRC, as required by 10 CFR Part 50, Appendix H. W. Exelon Fitz Patrick shall take no action to cause Exelon Generation Company or its parent company, and Exelon Generation Company shall not take any action, to void, cancel, or modify the $100 million Support Agreement to provide funding for the facility as represented in the application for approval of the transfer of direct ownership of and the license to own the facility from Exelon Generation Company to Exelon FitzPatrick, without the prior written consent of the Director, Office of Nuclear Reactor Regulation. Amendment Renewed License No. DPR-59 ENCLOSURE 4 NON PR OP RI ET ARY SAFETY EVALUATION BY THE OFFICE OF NUCLEAR REACTOR REGULATION FOR DIRECT TRANSFER OF OWNERSHIP FROM EXELON GENERATION COMPANY, LLC TO EXELON FITZPATRICK, LLC RENEWED FACILITY OPERATING LICENSE NO. DPR-59 JAMES A. FITZPATRICK NUCLEAR POWER PLANT AND INDEPENDENT SPENT FUEL STORAGE INSTALLATION GENERAL LICENSE SFGL-12 DOCKET NOS. 50-333 AND 72-012 OFFICIAL USE ONLY PROPRIETARY INFORMATION UNITED STATES NUCLEAR REGULATORY COMMISSION WASHINGTON, D.C. 20555-0001 SAFETY EVALUATION BY THE OFFICE OF NUCLEAR REACTOR REGULATION FOR DIRECT TRANSFER OF OWNERSHIP FROM EXELON GENERATION COMPANY. LLC TO EXELON FITZPATRICK. LLC RENEWED FACILITY OPERA TING LICENSE NO. DPR-59 JAMES A. FITZPATRICK NUCLEAR POWER PLANT AND INDEPENDENT SPENT FUEL STORAGE INSTALLATION GENERAL LICENSE SFGL-12 DOCKET NOS. 50-333 AND 72-012 This document contains proprietary information pursuant to Title 1 O of the Code of Federal Regulations Section 2.390. Proprietary information is identified by text enclosed within bold double brackets as shown here [[ ]].

1.0 INTRODUCTION

By application dated July 24, 2017 (Agencywide Documents Access and Management System (ADAMS) Accession No. ML 17206A395), and pursuant to Section 1 B4 of the Atomic Energy Act of 1954, as amended (AEA); Title 10 of the Code of Federal Regulations (10 CFR) 50.80, "Transfer of licenses"; 10 CFR 72.50, "Transfer of license"; and 10 CFR 50.90, "Application for amendment of license, construction permit, or early site permit," Exelon Generation Company, LLC (Exelon Generation) and its wholly owned subsidiary, Exelon FitzPatrick, LLC (Exelon FitzPatrick) (collectively, the "Applicants"), requested that the U.S. Nuclear Regulatory Commission (NRC or the Commission) consent to the proposed direct transfer of the James A. FitzPatrick Nuclear Power Plant (FitzPatrick) Renewed Facility Operating License (RFOL) No. DPR-59, and the FitzPatrick Independent Spent Fuel Storage Installation (ISFSI) general license (collectively referred to as the "Facility") from Exelon Generation to Exelon FitzPatrick. The Applicants also requested that the NRC approve a conforming amendment to the license to reflect this transfer. In the application dated July 24, 2017, Enclosures SA and BA are designated as proprietary because they contain Exelon's confidential commercial and financial information as described in the 10 CFR 2.390, "Public inspections, exemptions, requests for withholding," affidavit provided in Enclosure 7. Exelon requested that Enclosures SA and BA be withheld from public disclosure pursuant to 10 CFR 9.17(a}(4} and 10 CFR 2.390(a)(4). Nonproprietary versions of Enclosures 6A and BA suitable for public disclosure are provided as Enclosures 6 and 8, OFFICIAL USE ONLY PROPRIETARY INFORMATION OFFICIAL USE ONLY PROPRIETARY INFORMATION respectively. On August 28, 2017, the NRC staff determined, on the basis of the statements in the affidavit, that Enclosures 6A and SA contain proprietary commercial information and should be withheld from public disclosure (ADAMS Accession No. ML 17234A605). The proposed direct transfer would result from an internal corporate reorganization of Exelon Corporation (Exelon) entities, by which Exelon FitzPatrick, a Delaware limited liability company, would acquire ownership of the Facility from Exelon Generation. Exelon Generation will remain a subsidiary of Exelon and the licensed operator under contract with Exelon FitzPatrick. Exelon Generation will also remain as the employer of the Facility employees. According to the Applicants, this corporate reorganization will align the corporate structure for the Facility with the existing corporate structure of, and contractual arrangements for, the other nuclear power plants in the State of New York that are co-owned by Exelon Generation subsidiaries. The NRC staff notes that Exelon Generation is also the licensed operator under contract for three other units in the State of New York (Nine Mile Point Nuclear Station, Units 1 and 2 (Nine Mile Point), and R. E. Ginna Nuclear Power Plant), which are not the subject of this proposed direct transfer. Specifically, the units are owned by Nine Mile Point Nuclear Station, LLC and R. E. Ginna Nuclear Power Plant, LLC, respectively, each of which is an indirect subsidiary of Exelon Generation. 2.0 BACKGROUND According to the Applicants, FitzPatrick is a single unit boiling-water reactor (BWR) electric generating Facility with a rated thermal power of 2,536 megawatts thermal. FitzPatrick is located on Lake Ontario in Oswego County, New York, and consists of the BWR, other associated plant equipment, and related site facilities, including the generally licensed FitzPatrick ISFSI. The Facility is owned and operated by Exelon Generation. The original operating license was granted in 1974, and commercial operation began in July 1975. The NRC issued an RFOL for FitzPatrick on September 8, 2008, which expires on October 17, 2034. 1 Following the proposed transfer, Exelon FitzPatrick will become the owner to possess the Facility, and Exelon Generation will remain the operator, in accordance with the procedures set forth in the RFOL. The Applicants' July 24, 2017, submittal states, in part: To effect the present transaction, the Applicants will enter into a Nuclear Operating Services Agreement ("NOSA") pursuant to which Exelon Generation 1 By letter dated January 4, 2017 (ADAMS Accession No. ML 17012A280), the previous operator for FitzPatrick, Entergy Nuclear Operations, Inc. (Entergy), withdrew its "Certification of Permanent Cessation of Power Operations" letter. The NRG staff acknowledged this withdrawal and the continuing operation of FitzPatrick by letter dated January 19, 2017 (ADAMS Accession No. ML 17005A456). Entergy also submitted a letter to the NRG withdrawing all of the requests and regulatory commitments that it had made to the NRG with respect to its previously planned permanent cessation of operations of FitzPatrick (ADAMS Accession No. ML 17015AOOO). The NRG staff acknowledged these withdrawals by letter dated January 25, 2017 (ADAMS Accession No. ML 17018A045). The NRG approved the transfer of the license from Entergy Nuclear FitzPatrick, LLC and Entergy to Exelon Generation on March 31, 2017 (ADAMS Accession No. ML 17082A283). By letter dated March 31, 2017 (ADAMS Accession No. ML 17090A 188), Exelon Generation stated it would adopt and endorse docketed requests for specific licensing actions that had been submitted by Entergy and were still pending with the NRG as of the date of the license transfer to Exelon Generation. OFFICIAL USE ONLY PROPRIETARY INFORMATION OFFICIAL USE ONLY PROPRIETARY INFORMATION will retain responsibility for operating and decommissioning the Facility and Exelon FitzPatrick will assume responsibility for paying for the costs of operation from electricity and zero-emission credit revenues generated by the Facility. As such, Exelon Generation will recover the costs of operating the Facility from Exelon FitzPatrick under the terms of the NOSA. ... No physical changes will be made to, and there will be no adverse changes in day-to-day operations of, the Facility as a result of the proposed transfer. Exelon Generation will remain the licensed operator of the Facility under the terms of the NOSA and the employer of the employees working at the Facility. The corporate reorganization will not result in a change in staffing or otherwise impact the qualifications of personnel who currently operate FitzPatrick. The Facility will remain consolidated in and part of the Exelon Generation nuclear fleet, and all of Exelon Generation's significant nuclear operational and management experience, resources, and expertise will remain available to the Facility. The NRC staff notes that this safety evaluation follows an earlier and separate license transfer application dated August 18, 2016 (ADAMS Accession No. ML 16235A081), in which Entergy Nuclear FitzPatrick, LLC and Entergy Nuclear Operations, Inc. (Entergy) transferred to Exelon Generation the FitzPatrick operating and ownership licenses. The subsequent order, conforming amendment, and safety evaluation approving this direct transfer can be found at ADAMS Accession No. ML 17041A 196.

3.0 REGULATORY EVALUATION

The proposed transaction described in the application constitutes a direct transfer of ownership interest of FitzPatrick from Exelon Generation to Exelon FitzPatrick, requiring prior NRC approval. For direct transfers of control of a license, the NRC must find that the direct transfer of the license is otherwise consistent with applicable provisions of law, NRC regulations, and orders issued by the Commission. Section 50.SO(a) to 10 CFR states: No license for a production or utilization facility (including, but not limited to, permits under this part and part 52 of this chapter, and licenses under parts 50 and 52 of this chapter), or any right thereunder, shall be transferred, assigned, or in any manner disposed of, either voluntarily or involuntarily, directly or indirectly, through transfer of control of the license to any person, unless the Commission gives its consent in writing. In addition, the regulations in 10 CFR 50.SO(b) and (c) apply. Section 50.80(b)(1)(i) of 10 CFR states that an application for a license transfer shall include as much of the information described in 10 CFR 50.33 and 10 CFR 50.34 with respect to the identity and technical and financial qualifications of the proposed transferee as would be required by those sections if the application were for an initial license. OFFICIAL USE ONLY PROPRIETARY INFORMATION OFFICIAL USE ONLY PROPRIETARY INFORMATION Section 50.80(c) of 10 CFR states, in part, that: ... the Commission will approve an application for the transfer of a license, if the Commission determines: (1) That the proposed transferee is qualified to be the holder of the license; and (2) That transfer of the license is otherwise consistent with applicable provisions of law, regulations, and orders issued by the Commission pursuant thereto. Section 50.33(f) of 10 CFR states, in part, that: Except for an electric utility applicant for a license to operate a utilization facility of the type described in§ 50.21 (b) or§ 50.22, [each application shall state] information sufficient to demonstrate to the Commission the financial qualification of the applicant to carry out, in accordance with regulations in this chapter, the activities for which the permit or license is sought. Section 50.2, "Definitions," of 10 CFR states, in part, that an electric utility means: [A]ny entity that generates or distributes electricity and which recovers the cost of this electricity, either directly or indirectly, through rates established by the entity itself or by a separate regulatory authority. The regulation in 10 CFR 50.33(k}(1) requires that applicants provide information in the form of a report as described in 10 CFR 50.75, "Reporting and recordkeeping for decommissioning planning," indicating that there is reasonable assurance that funds will be available to decommission the facility. Section 50.75(c) of 10 CFR provides a table of minimum amounts (in 1986 dollars, the "base year") required to demonstrate reasonable assurance of funds for decommissioning by reactor type and power level. The NRC staff uses guidance in NUREG-1577, Revision 1, "Standard Review Plan on Power Reactor Licensee Financial Qualifications and Decommissioning Funding Assurance" (ADAMS Accession No. ML013330264 ), issued December 2001, to evaluate whether the financial qualifications of the applicants and financial assurance for decommissioning of the facility would be affected by the proposed transfers. The NRC staff also applies guidance in NUREG-0800, "Standard Review Plan for the Review of Safety Analysis Reports for Nuclear Power Plants: LWR [Light-Water] Edition," Chapter 13, "Conduct of Operations," Revision 6 of Section 13.1.1, "Management and Technical Support Organization" (ADAMS Accession No. ML 15005A449), for the review of the corporate-level management and technical support organization of applicants. Guidance in Revision 7 of Section 13.1.2 -13.1.3, "Operating Organization" (ADAMS Accession No. ML 15007 A296}, is applied for the review of the operating organization of applicants, including the structure, functions, and responsibilities of the onsite organization established to safely operate and maintain the facility. OFFICIAL USE ONLY PROPRIETARY INFORMATION OFFICIAL USE ONLY PROPRIETARY INFORMATION In addressing foreign ownership, control, or domination (FOCD) issues, Section 103d of the AEA provides, in relevant part, that no license may be issued to: [A]ny corporation or other entity if the Commission knows or has reason to believe it is owned, controlled, or dominated by an alien, a foreign corporation, or a foreign government. The regulation in 10 CFR 50.38, "Ineligibility of certain applicants," is the regulatory provision that implements the FOCD provision of the AEA. The NRC staff evaluates license transfer applications in a manner consistent with the guidance provided in the Final Standard Review Plan on Foreign Ownership, Control, or Domination to determine whether the applicant is owned, controlled, or dominated by an alien, a foreign corporation, or a foreign government as published in the Federal Register on September 28, 1999 (64 FR 52357-52359). The NRC staff also reviews information that relates to nuclear property damage insurance requirements under 10 CFR 50.54(w) and the Price-Anderson insurance and indemnity requirements under Section 170 of the AEA and 1 O CFR Part 140, "Financial Protection Requirements and Indemnity Agreements." Finally, with respect to the requested conforming license amendment, 10 CFR 50.90 states, in part: Whenever a holder of a license, including a construction permit and operating license under this part, ... desires to amend the license or permit, application for an amendment must be filed with the Commission, ... fully describing the changes desired, and following as far as applicable, the form prescribed for original applications. Pursuant to 10 CFR 2.1315, where license amendments are necessary to reflect an approved license transfer, such amendments will be included in the order that approves the license transfer. Further, 10 CFR 2.1315 states, in part, that unless otherwise determined by the Commission with regard to a specific application, the Commission has determined that any amendment to the license of a utilization facility or the license of an ISFSI, which does no more than conform the license to reflect the transfer action, involves, respectively, "no significant hazards consideration," or "no genuine issue as to whether the health and safety of the public will be significantly affected." 4.0 FINANCIAL QUALIFICATIONS According to the Applicants, Exelon Generation is a wholly owned subsidiary of Exelon, a U.S. utility services holding company. Exelon's stock is publicly traded on the New York Stock Exchange. Exelon for itself, or through its co-owned subsidiary, owns or co-owns and operates 23 nuclear reactors at 14 sites in 5 states, including FitzPatrick and Nine Mile Point, located immediately adjacent to FitzPatrick. The NRC staff notes that Nine Mile Point Nuclear Station, LLC, the owner of Nine Mile Point, is not a party to this direct license transfer application. Pursuant to the regulations at 10 CFR 50.33(f), Exelon Generation provided 5-year pro forma financial projections for itself and for Exelon FitzPatrick in Enclosures 6A and 8A of its direct license transfer application dated July 24, 2017. Exelon Generation and Exelon FitzPatrick do not qualify as electric utilities under 1 O CFR 50.2, since they do not recover the cost of electricity OFFICIAL USE ONLY PROPRIETARY INFORMATION OFFICIAL USE ONLY PROPRIETARY INFORMATION either directly or indirectly through rates established by the entity itself or by a separate regulatory authority. The financial projections were for the years 2018 through 2022 (post-transfer) and were provided to demonstrate that the Applicants have reasonable assurance of obtaining the funds necessary to cover estimated operations for 5 years in accordance with 10 CFR 50.33(f)(2). Exelon Generation Company, LLC Consolidated Projected Income Statement (in $ millions) Total Revenue: -Entergy Nuclear Operations, Inc.," dated March 31, 2017 (ADAMS Accession No. ML 17093A926). In the report, for the period as of December 31, 2016, costs to decommission the Facility were estimated to be $634,760,000, consisting of $626,380,000 (based on NRC minimum formula amount) in costs to decommission the site (estimated per 10 CFR 50.75(b) and (c) in 2016 dollars) and $8,380,000 in costs to decommission the ISFSI. As of December 31, 2016, the trust fund balance for FitzPatrick was $784,670,000. Accordingly, Entergy met and exceeded the NRC's minimum funding requirements for FitzPatrick using the prepayment method in accordance with 10 CFR 50.75(e)(1)(i) and 10 CFR 72.30(e)(5). As previously discussed, on March 1, 2017, the NRC staff issued an order and conforming amendment approving the license transfer application in which Entergy transferred to Exelon Generation the FitzPatrick operating and ownership licenses (ADAMS Accession No. ML 17041A196). In approving the license transfer, the staff concluded that in accordance with 10 CFR 50.75, there continues to be reasonable assurance that Exelon Generation will have the funds necessary to cover the estimated decommissioning costs of the facility at the end of licensed operations. Upon the closing of the transfer of the Facility from Entergy Nuclear FitzPatrick, LLC and Entergy to Exelon Generation on March 31, 2017 (ADAMS Accession No. ML 17090A 188), the decommissioning funds were transferred to Exelon Generation. The proposed direct license transfer does not involve any changes to the information that Entergy provided for the Facility in its March 31, 2017, decommissioning funding status report discussed above. In addition, the proposed transfer will not result in any changes to the decommissioning funding assurance for the Facility because Exelon Generation will continue to retain responsibility for decommissioning and maintaining the external decommissioning trust funds in accordance with 10 CFR 50. 75 and 10 CFR 72.30. Therefore, in accordance with 10 CFR 50.75, the NRC staff concludes that there continues to be reasonable assurance that Exelon Generation will have the funds necessary to cover the estimated decommissioning costs of the Facility at the end of licensed operations.

6.0 TECHNICAL EVALUATION

6.1 Management and Technical Support Organization The purpose of this technical evaluation is to ensure that the proposed corporate management is involved with, informed of, and dedicated to the safe operation of FitzPatrick. The NRC staff OFFICIAL USE ONLY PROPRIETARY INFORMATION OFFICIAL l:JSE ONLY PROPRIETARY INFORMATION used guidance provided in NUREG-0800, Revision 6 of Section 13.1.1, to evaluate Exelon FitzPatrick's management and technical support organization. The Applicants state, in part, in Enclosure 1,Section V, "Technical Qualifications," of the July 24, 2017, application, that: Exelon Generation will remain the employer of the employees working at the Facility. As a result, the proposed corporate reorganization will have no impact on staffing, management, or organization of FitzPatrick. No physical changes will be made to, and there will be no adverse changes in day-to-day operations of, the Facility as a result of the proposed transfer of direct ownership. The proposed amendment for the license change is stated to be administrative in nature. FitzPatrick will remain part of the Exelon nuclear fleet, and all the significant nuclear operational and management experience, resources, and expertise will continue to be available. Based on the above, the NRC staff finds the proposed management and technical support organization to be acceptable. 6.2 Operating Organization The NRC staff reviewed the direct license transfer application to ensure that sufficient technical resources will continue to be provided to adequately operate this Facility in both normal and off-normal conditions as a result of this license transfer. The NRC staff used the guidance provided in NUREG-0800, Chapter 13.1.2 -13.1.3, Revision 7, to evaluate Exelon FitzPatrick's operating organization. Currently, Exelon Generation is the largest licensed nuclear operator in the United States. As stated, in part, in Section V, "Technical Qualifications," of Enclosure 1 of the July 24, 2017 application, Exelon Generation: currently owns or co-owns, directly or through a co-owned subsidiary, and operates, through ownership or under contract, fourteen nuclear plants consisting of twenty-three units ... Exelon Generation will remain the licensed operator of FitzPatrick under the terms of the Nuclear Operating Services Agreement with no changes to staffing or adverse changes to day-to-day operations; therefore, the NRC staff finds the operating organization to be acceptable. 7.0 STANDARD CONTRACT FOR DISPOSAL OF SPENT NUCLEAR FUEL Following completion of the proposed internal reorganization, Exelon Generation will remain responsible for the management and interim storage of spent nuclear fuel at FitzPatrick. Exelon Generation and Exelon FitzPatrick will be parties to the Standard Contract for the Disposal of Spent Nuclear Fuel and/or High Level Radioactive Waste, No. DE-CR01-83NE-44407-FTZ (DOE Standard Contract) and will retain all rights and obligations under that DOE Standard Contract for FitzPatrick. OFFICIAL YSE ONLY PROPRIETARY INFORMATION OFFICIAL USE ONLY PROPRIETARY INFORMATION

8.0 ANTITRUST REVIEW

The AEA does not require or authorize antitrust reviews of post-operating license transfer applications (Kansas Gas and Electric Co., et al (Wolf Creek Generating Station, Unit 1), CLl-99-19, 49 NRC 441 (1999)). This application post-dates the issuance of the operating license for the unit under consideration in this safety evaluation and, therefore, no antitrust review is required or authorized. 9.0 FOREIGN OWNERSHIP. CONTROL, OR DOMINATION Section 103 of the AEA, in relevant part, prohibits the Commission from issuing a license for a nuclear power plant to an alien or any corporation or other entity if the Commission knows or has reason to believe it is owned, controlled, or dominated by an alien, a foreign corporation, or a foreign government. Section 50.38 of 10 CFR is the regulatory provision that implements this statutory prohibition. According to the application, Exelon FitzPatrick and Exelon Generation are not owned, controlled, or dominated by an alien, foreign corporation, or foreign government. As previously discussed, Exelon FitzPatrick is a wholly owned subsidiary of Exelon Generation, which is in turn a wholly owned subsidiary of Exelon. Exelon is an investor-owned utility services holding company incorporated under the laws of the State of Pennsylvania, with its principal office located in Chicago, Illinois. Exelon's securities are widely held and publicly traded on the New York Stock Exchange. The application states that unless otherwise indicated in Enclosure 3 of the direct license transfer application, the current directors and executive officers of Exelon FitzPatrick, Exelon, and Exelon Generation are U.S. citizens. The NRC staff notes that Exelon FitzPatrick and Exelon Generation are member managed by Exelon Generation and Exelon respectively, therefore, individually, they do not have a board of directors (BOD) or management committee. These bodies are typically authorized to make decisions that influence nuclear safety and security. The staff further notes that two individuals on the Exelon BOD are foreign citizens (one Canadian and one U.S.-French dual citizenship). The NRC staff recognizes U.S. citizenship regardless of dual citizenship status and, therefore, does not consider dual citizenship in this case to be an FOCD concern. Furthermore, based on the makeup of Exelon's BOD, the staff also recognizes that the single foreign BOD member cannot by oneself exercise control of the board and nuclear safety and security decisions made by Exelon or its subsidiaries. In its independent analysis of the application, including open-source verification of the information provided related to ownership of the Applicants, the NRC staff has found no evidence of FOCD. Therefore, based on its review of the information provided in the application, the NRC staff concludes that it does not know or have reason to believe that FitzPatrick will be owned, controlled, or dominated by a foreign corporation or foreign government as a result of the proposed direct license transfer.

10.0 NUCLEAR INSURANCE

AND INDEMNITY Pursuant to the requirements of the Price-Anderson Act (Section 170 of the AEA) and the NRC's implementing regulations in 10 CFR Part 140, the current indemnity agreement must be modified to reflect that after the proposed direct license transfer takes effect, Exelon FitzPatrick OFFICIAL USE ONLY PROPRIETARY INFORMATION OFFICIAL USE ONLY PROPRIETARY INFORMATION will be the sole owner licensee of the Facility and Exelon Generation will remain the operating licensee. Consistent with NRC practice, the NRC staff will require Exelon FitzPatrick to provide and maintain onsite property insurance as specified in 10 CFR 50.54, "Conditions of licenses," paragraph (w). Exelon FitzPatrick is also required to provide evidence that it has obtained the appropriate amount of insurance in accordance with 10 CFR 140.11(a)(4), which will be effective concurrent with the date of the license transfer and amended indemnity agreement. Therefore, the order approving the transfer will be conditioned as follows: Prior to the completion of the license transfer, Exelon FitzPatrick, LLC shall provide satisfactory documentary evidence to the Director of the Office of Nuclear Reactor Regulation that it has obtained the appropriate amount of insurance required of a licensee under 10 CFR part 140 and 10 CFR 50.54(w). Based on the above, the NRC staff concludes that the proposed direct license transfer, as conditioned, satisfies the nuclear insurance and indemnity requirements of 1 O CFR Part 140 and 10 CFR Part 50. 11.0 SUMMARY In consideration of the NRC staff's review discussed above, the staff concludes that ownership of the Facility by Exelon FitzPatrick following the transfer will meet the financial qualification requirements pursuant to 10 CFR 50.33(f). Further, the NRC staff finds that the Applicants have satisfied the NRC's decommissioning funding assurance requirements for the Facility; are not owned, controlled, or dominated by a foreign individual or entity; and have met the applicable onsite and offsite insurance requirements. No physical changes will be made to the Facility, and there will be no adverse changes in the day-to-day operations of the Facility as a result of this transfer. The NRC staff concludes that Exelon FitzPatrick is financially qualified to be the owner of FitzPatrick. Exelon Generation's corporate management structure and technical support organization are acceptable for the safe operation of FitzPatrick and the operating organization will not be adversely affected by the proposed license transfer. Finally, the NRC staff concludes that the proposed license transfer is otherwise consistent with applicable provisions of law, regulations, and orders issued by the Commission pursuant hereto, and the proposed transfer will not have any adverse impact on the public health and safety, nor will it be inimical to the common defense and security. 12.0 CONFORMING AMENDMENT The Applicants requested approval of a conforming amendment to RFOL No. DPR-59. No physical or operating changes to the facility are requested. 12.1 Discussion The Applicants requested approval of a proposed conforming amendment to the license. The changes to be made to the license are indicated in the conforming amendment in Enclosure 2 to the cover letter forwarding the NRC staff's Order regarding the subject transfer. The proposed changes in the conforming amendment do no more than reflect the approved transfer of ownership related to the FitzPatrick RFOL No. DPR-59 and the FitzPatrick ISFSI general license from Exelon Generation to Exelon FitzPatrick. The amendment involves no safety OFFICIAL USE ONLY PROPRIETARY INFORMATION OFFICIAL USE ONLY PROPRIETARY INFORMATION concerns and is administrative in nature. Accordingly, the proposed amendment is acceptable. The amendment will be issued and made effective at the time the transfer is consummated. 12.2 Conclusion with Respect to the Conforming Amendment The Commission has concluded, based on the considerations discussed above, that: (1) there is reasonable assurance that the health and safety of the public will not be endangered by operation in the proposed manner, (2) there is reasonable assurance that such activities will be conducted in compliance with the Commission's regulations, and (3) the issuance of the amendment will not be inimical to the common defense and security or to the health and safety of the public.

13.0 STATE CONSULTATION

In accordance with the Commission's regulations, the New York State official was notified of the proposed license transfer and issuance of the amendment on September 28, 2017. The State official had no comments.

14.0 ENVIRONMENTAL CONSIDERATION

The subject application is for approval of the transfer of a license issued by the NRC and a conforming amendment to the license to reflect this transfer. Accordingly, the actions involved meet the eligibility criteria for categorical exclusion set forth in 10 CFR 51.22(c)(21 ). Pursuant to 10 CFR 51.22(b), no environmental impact statement or environmental assessment need be prepared in connection with approval of the application.

15.0 CONCLUSION

The Commission has concluded, based on the considerations discussed above, that: (1) the proposed transferee is qualified to be the holder of the license and (2) transfer of the license is otherwise consistent with applicable provisions of law, regulations, and orders issued by the Commission pursuant thereto. The Commission has concluded, based on the considerations discussed above, that: (1) there is reasonable assurance that the health and safety of the public will not be endangered by operation in the proposed manner, (2) there is reasonable assurance that such activities will be conducted in compliance with the Commission's regulations, and (3) the issuance of the amendment will not be inimical to the common defense and security or to the health and safety of the public. Principal Contributors: N. Newton M. Dusaniwskyj D. Ki Date: November 7, 2017 OFFICIAL USE ONLY PROPRIETARY INFORMATION

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