ML15258A055

McGuire Nuclear Station, Unit 1 - Renewed Facility Operating License

ML15258A055
Person / Time
Site:	McGuire
Issue date:	09/08/2015
From:	Duke Energy Carolinas
To:	Office of Nuclear Reactor Regulation
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Download: ML15258A055 (15)

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Duke Energy Date: 91S8/2015 Document Transmittal

1. TR-NUC-MC-O00643

1. Gardner, Troy R D C M N R N MTA O M Proe su2. Mc Ginnis, Vickie L (At Mcguire)

D C M N R NMTA O M Proe su3. McCree, Victor M Released By:4. SCIETEMTCL C' EARWTR,-F Facility:

MCGUIRE NUCLEAR STATION Duke Eneray5.SR LGFL FLM SUBJECT 13225 Haaers Ferry Road6. U S NUC REG WASHINGTON, DC MNS FOL FOR UNIT 1 Document Manaoement

7. USNRC MG02MB. WESTINGHOUSE ELECTRIC CO LLC Huntersville, NC 28078Page 1 of 1 MNSDCRM@duke-enerav.com S12 3 4 5 " 7 8UN-MC-MSFLUil-79-SUFIE FYE FYE RAE FIERAE AE RAERemarks:

THIS FOL SHOULD BE DISTRIBUTED TO MADM-02 (FOL) AND MADM-04B C'IS PLEASE PLACE THE FOL IN FRONT OF YOUR TS MANUAL, DUKE ENERGY CAROLINAS.

LLCDOCKET NO. 50-369MCGUIRE NUCLEAR STATION, UNIT IRENEWED FACILITY OPERATING LICENSERenewed License No. NPF-91. The U.S. Nuclear Regulatory Commission (Commission),

having previously made thefindings set forth in License No. NPF-9 issued on June 12, 1981, has now found that:A. The application for renewed operating license filed by the Duke EnergyCorporation" complies with the standards and requirements of the Atomic EnergyAct of 1954, as amended (the Act), and the Commission's regulations set forth in10 CFR Chapter I and all required notifications to other agencies or bodies havebeen duly made;B. Actions have been identified and have been or will be taken with respect to (1)managing the effects of aging during the period of extended operation on thefunctionality of structures and components that have been identified to requirereview under 10 CFR 54.21 (a)(1), and (2) time-limited aging analyses that havebeen identified to require review under 10 CFR 54.21 (c), such that there isreasonable assurance that the activities authorized by the renewed operating license will continue to be conducted in accordance with the current licensing basis, as defined in 10 CFR 54.3, for the McGuire Nuclear Station, Unit 1 (facility or plant), and that any changes made to the plant's current licensing basis in orderto comply with 10 CFR 54.29(a) are in accord with the Act and the Commission's regulations; C. The facility will operate in conformity with the application, as amended, theprovisions of the Act, and the regulations of the Commission; D. There is reasonable assurance:

(i) that the activities authorized by this renewedoperating license can be conducted without endangering the health and safety ofthe public, and (ii) that such activities will be conducted in compliance with theCommission's regulations set forth in 10 CFR Chapter I;E. The licensee is technically and financially qualified to engage in the activities authorized by this renewed operating license in accordance with the Commission's regulations set forth in 10 CFR Chapter I;Duke Energy Corporation converted to Duke Power Company LLC on April 3, 2006 and wasre-named Duke Energy Carolinas, LLC as of October 1, 2006. Duke Energy Carolinas, LLCis the owner and operator of McGuire Nuclear Station, Unit 1. References to the "licensee" or "Duke' are to Duke Energy Carolinas, LLC.Renewed License No. NPF-9Amendment No. 245 F. The licensee has satisfied the applicable provisions of 10 CFR Part 140,"Financial Protection Requirements and Indemnity Agreements,"

of theCommission's regulations; G. The issuance of this renewed operating license will not be inimical to the commondefense and security or to the health and safety of the public;H. After weighing the environmental,

economic, technical, and other benefits of thefacility against environmental and other costs and considering available alternatives, the issuance of this Renewed Facility Operating License No. NFP-9is in accordance with 10 CFR Part 51, of the Commission's regulations and allapplicable requirements have been satisfied; and,I. The receipt, possession, and use of source, byproduct and special nuclearmaterial as authorized by this renewed operating license will be in accordance with the Commission's regulations in 10 CFR Parts 30, 40 and 70.2. Based on the foregoing

findings, and pursuant to approval by the Nuclear Regulatory Commission at a meeting on June 9, 1981, the License for Fuel-Loading and ZeroPower Testing issued on January 23, 1981, as amended, is superseded by RenewedFacility Operating License No. NPF-9 which is hereby issued to Duke EnergyCarolinas, LLC to read as follows:A. This renewed operating license applies to the McGuire Nuclear Station, Unit 1, apressurized water reactor and associated equipment (the facility) owned andoperated by Duke Energy Carolinas, LLC. The facility is located on thelicensee's site in Mecklenburg County, North Carolina, on the shore of LakeNorman approximately 17 miles northwest of Chiarlotte, North Carolina and isdescribed in the Updated Final Safety Analysis Report, as supplemented andamended, and in the Environmental Report, as supplemented and amended.B. Subject to the conditions and requirements incorporated herein, the Commission hereby licenses Duke Energy Carolinas, LLC:(1) Pursuant to Section 103 of the Act and 10 CFR Part 50, to possess, use,and operate the facility at the designated location in Mecklenburg County,North Carolina, in accordance with the procedures and limitations set forthin the renewed operating license;(2) Pursuant to the Act and 10 CFR Part 70 to receive, possess and use atany time special nuclear material as reactor fuel, in accordance with thelimitations for storage and amounts required for reactor operation, asdescribed in the Updated Final Safety Analysis Report, as supplemented and amended;(3) Pursuant to the Act and 10 CFR Parts 30, 40 and 70 to receive, possessand use at any time any byproduct, source and special nuclear material assealed neutron sources for reactor startup, sealed sources for reactorinstrumentation and radiation monitoring equipment calibration, and asfission detectors in amounts as required; Renewed License No. NPF-9Amendment No. 245 (4) Pursuant to the Act and 10 CFR Parts 30, 40 and 70, to receive, possessand use in amounts as required any byproduct, source or special nuclearmaterial without restriction to chemical or physical form, for sampleanalysis or instrument calibration or associated with radioactive apparatus or components; (5) Pursuant to the Act and 10 CFR Parts 30, 40 and 70, to possess, but notseparate, such byproducts and special nuclear materials as may beproduced by the operation of McGuire Nuclear Station, Units 1 and 2, and;(6) Pursuant to the Act and 10 CFR Parts 30 and 40, to~receive, possess andprocess for release or transfer such byproduct material as may beproduced by the Duke Training and Technology Center.C. This renewed operating license shall be deemed to contain and is subject to theconditions specified in the Commission's regulations set forth in 10 CFR ChapterI and is subject to all applicable provisions of the Act and to the rules,regulations, and orders of the Commission now or hereafter in effect; and issubject to the additional conditions specified or incorporated below:(1) Maximum Power LevelThe licensee is authorized to operate the facility at a reactor core fullsteady state power level of 3469 megawatts thermal (100%).(2) Technical Specifications The Technical Specifications contained in Appendix A, as revised throughAmendment No. 279, are hereby incorporated into this renewed operating license.

The licensee shall operate the facility in accordance with theTechnical Specifications.

(3) Updated Final Safety Analysis ReportThe Updated Final Safety Analysis Report supplement submitted pursuantto 10 CFR 54.21(d),

as revised on December 16, 2002, describes certainfuture activities to be completed before the period of extended operation.

Duke shall complete these activities no later than June 12, 2021, and shallnotify the NRC in writing when implementation of these activities iscomplete and can be verified by NRC inspection.

The Updated Final Safety Analysis Report supplement as revised onDecember 16, 2002, described above, shall be included in the nextscheduled update to the Updated Final Safety Analysis Report required by10 CFR 50.71 (e)(4), following issuance of this renewed operating license.Until that update is complete, Duke may make changes to the programsdescribed in such supplement without prior Commission

approval, provided that Duke evaluates each such change pursuant to the criteria setforth in 10 CFR 50.59 and otherwise complies with the requirements in thatsection.Renewed License No. NPF-9Amendment No. 279 (4) Fire Protection ProaqramDuke Energy Carolinas, LLC shall implement and maintain in effect allprovisions of the approved fire protection program as described in theUpdated Final Safety Analysis Report for the facility and as approved in theSER dated March 1978 and Supplements 2, 5 and 6 dated March 1979, April1981, and F~ebruary 1983, respectively, and the safety evaluation dated May15, 1989, subject to the following provision:

Duke may make changes to the approved fire protection programwithout prior approval of the Commission only if those changes wouldnot adversely affect the ability to achieve and maintain safe shutdown inthe event of a fire.(5) Additional Conditions The Additional Conditions contained in Appendix B, as revised throughAmendment No. 269, are hereby incorporated into this renewed operating license.

Duke Energy Carolinas, LLC shall operate the facility in accordance with the Additional Conditions.

(6) Antitrust Conditions The licensee shall comply with the antitrust conditions delineated in AppendixC of this renewed operating license.(7) Mitiaqation Strateqy License Condition Develop and maintain strategies for addressing large fires and explosions andthat include the following key areas:A) Fire fighting response strategy with the following elements:

1. Pre-defined coordinated fire response strategy and guidance2. Assessment of mutual aid fire fighting assets3. Designated staging areas for equipment and materials

4. Command and control5. Training of response personnel B) Operations to mitigate fuel damage considering the following:

1. Protection and use of personnel assets2. Communications

3. Minimizing fire spread4. Procedures for implementing integrated fire response strategy5. Identification of readily-available pre-staged equipment

6. Training on integrated fire response strategy7. Spent fuel pool mitigation measuresC) Actions to minimize release to include consideration of:1. Water spray scrubbing

2. Dose to onsite responders Renewed License No. NPF-9Amendment No. 269

-4A-D. Physical Protection Duke Energy Carolinas, LLC shall fully implement and maintain in effect allprovisions of the Commission-approved physical

security, training andqualification and safeguards contingency plans including amendments madepursuant to provisions of the Miscellaneous Amendments and SearchRequirements revisions to 10 CFR 73.55 (51 FR 27817 and 27822) and to theauthority of 10 CFR 50.90 and 10 CFR 50.54(p).

The combined set of plans,which contains safeguards information protected under 10 CFR 73.21, isentitled:

"Duke Energy Physical Security Plan" submitted by letter datedSeptember 8, 2004, and supplemented on September 30, 2004, October 15,2004, October 21, 2004, and October 27, 2004.Duke Energy Carolinas, LLC shall fully implement and maintain in effect allprovisions of the Commission-approved cyber security plan (CSP), including changes made pursuant to the authority of 10 CFR 50.90 and 10 CFR 50.54(p).

The Duke Energy Carolinas, LLC CSP was approved by License Amendment No. 264, as supplemented by a change approved by License Amendment No.279.E. Deleted by Amendment No. 233.Renewed License No. NPF-9Amendment No. 279 F. The licensee shall have and maintain financial protection of such type and insuch amounts as the Commission shall require in accordance with Section 170of the Atomic Energy Act of 1954, as amended, to cover public liability claims.G. The licensee is authorized to receive from the Oconee Nuclear Station, Units 1,2, and 3, possess, and store irradiated Oconee fuel assemblies containing special nuclear material, enriched to not more than 3.24% by weight U-235subject to the following conditions:

a. Oconee fuel assemblies may not be placed in the McGuire Nuclear Station, unit1 and 2, reactors.

b. Irradiated fuel shipped to McGuire Nuclear Station, Units 1 and 2, from Oconeeshall have been removed from the Oconee reactor no less than 270 days priorto shipment.

c. No more than 300 Oconee irradiated fuel assemblies shall be received forstorage at McGuire Nuclear Station.d. Burnup of Oconee fuel shipped shall be no greater than 36,000 MW days permetric ton.e. Receipt of irradiated Oconee fuel shall be limited by the use of the NFS-4 (NAG-1), NLI-1/2, TN-8, or TN-8L spent fuel casks.f. The spent fuel pool crane travel shall be restricted by administrative controls tothe paths required by Selected Licensee Commitment 16.9.20 whenever a spentfuel cask is being handled.g. Oconee fuel assemblies may not be transferred from one McGuire spent fuelpool to the other.3. This renewed operating license is effective as of the date of issuance and shall expireat midnight on June 12, 2041.FOR THE NUCLEAR REGULATORY COMMISSION J.E. Dyer, DirectorOffice of Nuclear Reactor Regulation

Attachment:

1. Appendix A -Technical Specifications

2. Appendix B -Additional Conditions

3. Appendix C -'Antitrust Conditions Date of Issuance:

December 5, 2003Renewed License No. NPF-9 APPENDIX BADDITIONAL CONDITIONS FACILITY OPERATING LICENSE NO. NPF-9Duke Energy Carolinas, LLC shall comply with the following conditions on the schedules noted below:Amendment Additional Implementation Number Conditions Date.184 The schedule for the performance of new and .Within 90 days ofrevised surveillance requirements shall be as the date of thisfollows:

amendment.

For surveillance requirements (SRs) that arenew in Amendment No. 184 the firstperformance is due at the end of the firstsurveillance interval that begins atimplementation of Amendment No. 184. ForSRs that existing prior to Amendment No. 184,including SRs with modified acceptance criteriaand SRs whose intervals of performance arebeing extended, the first performance is due atthe end of the first surveillance interval thatbegins on the date the surveillance was lastperformed prior to implementation ofamendment No. 184. For SRs that existedprior to Amendment No. 184, whose intervals of performance are being reduced, the firstreduced surveillance interval begins uponcompletion of the first surveillance performed after implementation of Amendment No. 184.Renewed License No. NPF-9Amendment No. 258-B1-APPENDIX BADDITIONAL CONDITIONS FACILITY OPERATING LICENSE NO. NPF-9Duke Power Power Company LLC shall comply with the following conditions on theschedules noted below:Amendment Additional Implementation Number Conditions Date.249 Upon implementation of the Amendment adopting TSTF- See Condition 448, Revision 3, the determination of control roomenvelope (CRE) unfiltered inleakage as required by SR3.7.9.4, in accordance with TS 5.5.16.c.(i),

theassessment of CRE habitability as required by TS5.5.16.c.(ii),

and the measurement of CRE pressure asrequired by TS 5.5.16.d, shall be considered met.Following implementation:

(a) The first performance of SR 3.7.9.4 in accordance withTS 5.5.16.c.(i),

shall be within the specified Frequency of6 years, plus the 18 month allowance of SR 3.0.2, asmeasured from October 2003, the date of the most recentsuccessful tracer gas test, as stated in the February 19,2004 letter response to Generic Letter 2003-01, or withinthe next 18 months if the time period since the mostrecent successful tracer gas test is greater than 6 years.(b) The first performance of the periodic assessment ofCRE habitability, TS 5.5.16.c.(ii),

shall be within 3 years,plus the 9 month allowance of SR 3.0.2 as measured fromOctober 2003, the date of the most recent successful tracer gas test, as stated in the February 19, 2004 letterresponse to Generic Letter 2003-01, or within the next 9months if the time period since the most recent successful tracer gas test is greater than 3 years.(c) The first performance of the periodic measurement ofCRE pressure, TS 5.5.16.d, shall be within 18 months,plus the 138 days allowed by SR 3.0.2, as measured fromJanuary 2007, the date of the most recent successful pressure measurement test, or within 138 days if notperformed previously.

Renewed License No. NPF-9Amendment No. 249B-2 APPENDIX BADDITIONAL CONDITIONS FACILITY OPERATING LICENSE NO. NPF-9Duke Power Power Company LLC shall comply with the following conditions on theschedules noted below:Amendment Additional Implementation Number Conditions Date.269 The Licensee shall perform an analysis, in the form See Condition of either a topical report or site-specific

analysis, describing how the current P-T limit curves at 34Effective Full Power Years (EFPY) for McGuire Unit1 and the methodology used to develop these curvesconsidered all Reactor Vessel (RV) materials (beltline and non-beltline) and the lowest servicetemperature of all ferritic Reactor Coolant PressureBoundary (RCPB) materials, as applicable, consistent with the requirements of 10 CFR Part 50,Appendix G. This analysis shall be provided to theNRC within one year after NRC approval of theMarch 5, 2012 McGuire Measurement Uncertainty Recapture (MUR) License Amendment Request.269 McGuire Nuclear Station switchyard voltages See Condition required (so as not to impact the degraded voltagerelay settings),

corresponding to Unit 1 post-MURuprate conditions, will be evaluated prior toimplementation of MUR on Unit 1. However, if at thetime of this evaluation, Ujnit 1 is not capable ofrealizing the expected maximum post-MUR uprateMWt power level and/or Unit 1 is not capable ofgenerating the expected maximum post-MUR uprateMWe, then an additional evaluation will be performed when Unit 1 has these capabilities.

If this additional evaluation is necessary, any changes in theswitchyard voltages required (so as not to impact thedegraded voltage relay settings),

corresponding toconditions associated with the additional Unit 1 MWtcapability and/or the additional Unit 1 MWecapability, will be evaluated prior to raising Unit Ireactor core full steady state power to the expectedmaximum post-MUR uprate MWt power level and/orprior to Unit 1 generating the expected maximumpost-MUR uprate MWe.B-3Renewed License No. NPF-9Amendment No. 269 APPENDIX CANTITRUST CONDITIONS Pursuant to an Order by the Atomic Safety and Licensing Board, dated April 23, 1975, theNuclear Regulatory Commission incorporates in Renewed Operating License NPF-9 thefollowing antitrust conditions:

a. The licensee makes the commitments contained herein, recognizing that bulkpower supply arrangements between neighboring entities normally tend to servethe public interest.

In addition, where there are net benefits to all participants such arrangements also serve the best interests of each of the participants.

Among the benefits of such transactions are increased electric system reliability, a reduction in the cost of electric power, and minimization of the environmental effects of the production and sale of electricity.

Any particular bulk power supply transaction may afford greater benefits to oneparticipant than to another.

The benefits realized by a small system may beproportionately greater than those realized by a larger system. The relativebenefits to be derived by the parties from a proposed transaction, however,should not be controlling upon a decision with respect to the desirability ofparticipating in the transaction.

Accordingly, the licensee will enter intoproposed bulk power transactions of the types hereinafter described which, onbalance, provide net benefits to the licensee.

There are net benefits in atransaction if the licensee recovers the cost of the transaction, (as defined insubparagraph (1)(d) hereof) and there is no demonstrable net detriment to thelicensee arising from the transaction.

(1) As used herein:(a) "Bulk Power" means electric power and any attendant energy,supplied or made available at transmission or sub-transmission voltage by one electric system to another.(b) "Neighboring Entity" means a private or public corporation, agovernmental agency or authority, a municipality, a cooperative, or alawful association of any of the foregoing owning or operating, orproposing to own or operate, facilities for the generation andtransmission of electricity which meets each of the following criteria:

(1) its existing or proposed facilities are economically and technically feasible of interconnection with those of the licensee and (2) with theexception of municipalities, cooperatives, governmental agencies orauthorities, and associations, it is, or upon commencement ofoperations will be, a public utility and subject to regulation with respectto rates and service under the laws of North Carolina or SouthCarolina or under the Federal Power Act; provided,

however, that asto associations, each member of such association is either a publicutility as discussed in this clause (2) or a municipality, a cooperative orC-I a governmental agency or authority.

(c) Where the phrase "neighboring entity" is intended to include entitiesengaging or proposing to engage only in the distribution of electricity, this is indicated by adding the phrase "including distribution systems."

(d) "Cost" means any appropriate operating and maintenance

expenses,

• together with all other costs, including a reasonable return on thelicensee's investment, which are reasonably allocable to a transaction.

• However, no value shall be included for loss of revenue due to theloss of any wholesale or retail customer as a result of any transaction hereafter described.

(2) (a) The licensee will interconnect and coordinate reserves by means ofthe sale and exchange of emergency and scheduled maintenance bulk power with any neighboring entity(ies),

when there are netbenefits to each party, on terms that will provide for all of thelicensee's properly assignable costs as may be determined by theFederal Energy Regulatory Commission and consistent with such costassignment will allow the other party the fullest possible benefits ofsuch coordination.

(b) Emergency service and/or scheduled maintenance service to beprovided by each party will be furnished to the fullest extent available from the supplying party and desired by the party in need. Thelicensee and each party will provide to the other emergency serviceand/or scheduled maintenance service if and when available from itsown generation and, in accordance with recognized industry

practice, from generation of other to the extent it can do so without impairing service to its customers, including other electric systems to whom ithas firm commitments.

(c) Each party to a reserve coordination arrangement will establish itsown reserve criteria, but in no event shall the minimum installed reserve on each system be less than 15%, calculated as a percentage of estimated peak load responsibility.

Either party, if it has, or hasfirmly planned, installed reserves in excess of the amount called for byits own reserve criterion, will offer any such excess as may in fact beavailable at the time for which it is sought and for such period as theselling party shall determine for purchase in accordance withreasonable industry practice by the other party to meet such otherparty's own reserve requirements.

The parties will provide suchamounts of spinning reserve as may be adequate to avoid theimposition of unreasonable demands on the other part(ies) in meetingthe normal contingencies of operating its (their) system(s).

However,in no circumstances shall such spinning reserve requirement exceedthe installed reserve requirement.

C-2 (d) Interconnections will not be limited to low voltages when highervoltages are available from the licensee's installed facilities in the areawhere interconnection is desired and when the proposed arrangement is found to be technically and economically feasible.

(e) Interconnection and reserve coordination agreements will not embodyprovisions which impose limitations upon the use or resale of powerand energy sold or exchanged pursuant to the agreement.

Further,such arrangements will not prohibit the participants from entering intoother interconnection and coordination arrangements, but may includeappropriate provisions to assure that (i) the licensee receivesadequate notice of such additional interconnection or coordination, (ii)the parties will jointly consider and agree upon such measures, if any,as are reasonably necessary to protect the reliability of theinterconnected systems and to prevent undue burdens from beingimposed on any system, and (iii) the licensee will be fullycompensated for its costs. Reasonable industry practice asdeveloped in the area from time to time will satisfy this provision.

(3) The licensee currently has on file, and may hereafter file, with the FederalEnergy Regulatory Commission contracts with neighboring entity(ies) providing for the sale and exchange of short-term power and energy, limitedterm power and energy, economy energy, non-displacement energy, andemergency capacity and energy. The Licensee will enter into contracts providing for the same or for like transactions with any neighboring entity onterms which enable the licensee to recover the full costs allocable to suchtransaction.

(4) The licensee currently sells capacity and energy in bulk on a fullrequirements basis to several entities engaging in the distribution of electricpower at retail. In addition, the licensee supplies electricity directly toultimate users in a number of municipalities.

Should any such entity(ies) ormunicipality(ies) desire to become a neighboring entity as defined insubparagraph (1)(b) hereof (either alone or through combination withothers),

the licensee will assist in facilitating the necessary transition throughthe sale of partial requirements firm power and energy to the extent that,except for such transition, the licensee would otherwise be supplying firmpower and energy. The provision of such firm partial requirements serviceshall be under such rates, terms and conditions as shall be found by theFederal Energy Regulatory Commission to provide for the recovery of thelicensee's cost. The licensee will sell capacity and energy in bulk on a fullrequirements basis to any municipality currently served by the licensee whensuch municipality lawfully engages in the distribution of electric power atretail.(5) (a) The licensee will facilitate the exchange of electric power in bulk inwholesale transactions over its transmission facilities (1) between orC-3 among two or more neighboring entities including distribution systems with which it is interconnected or may be interconnected inthe future, and (2) between any such entity(ies) and any other electricsystem engaging in bulk power supply between whose facilities thelicensee's transmission lines and other transmission lines would forma continuous electric path, provided that permission to utilize suchother transmission lines has been obtained.

Such transaction shallbe undertaken provided that the particular transaction reasonably canbe accommodated by the licensee's transmission system from afunctional and technical standpoint and does not constitute thewheeling of power to a retail customer.

Such transmission shall beon terms that fully compensate the licensee for its cost. Anyentity(ies) requesting such transmission arrangements shall givereasonable notice of its (their) schedule and requirements.

(b) The licensee will include in its planning and construction programsufficient transmission capacity as required for the transactions referred to in subparagraph (a) of this paragraph, provided that (1)the neighboring entity(ies) gives the licensee sufficient advancenotice as may be necessary reasonably to accommodate its (their)requirements from a functional and technical standpoint and (2) thatsuch entity(ies) fully compensate the licensee for its cost. In carryingout this subparagraph (b), however, the licensee shall not be requiredto construct or add transmission facilities which (a) will be of nodemonstrable present or future benefit to the licensee, or (b) whichcould be constructed by the requesting entity(ies) without duplicating any portion of the licensee's existing transmission lines, or (c) whichwould jeopardize the licensee's ability to finance or construct onreasonable terms facilities needed to meet its own anticipated systemrequirements.

Where regulatory or environmental approvals arerequired for the construction or addition of transmission facilities needed for the transactions referred to in subparagraph (a) of thisparagraph it shall be the responsibility of the entity(ies) seeking thetransaction to participate in obtaining such approvals, including sharing in the cost thereof.(6) To increase the possibility of achieving greater reliability and economy ofelectric generation and transmission facilities, the licensee will discuss loadprojections and system development plans with any neighboring entity(ies).

(7) When the licensee's plans for future nuclear generating units (for whichapplication will hereafter be made to the Nuclear Regulatory commission) have reached the stage of serious planning, but before firm decisions havebeen made as to the size and desired completion date of the proposednuclear units, the licensee will notify all neighboring entities including distribution systems with peak loads smaller than the licensee's that thelicensee plans to construct suchC-4 nuclear units. Neither the timing nor the information provided need be suchas to jeopardize obtaining the required site at the lowest possible cost.(8) The foregoing commitments shall be implemented in a manner consistent with the provisions of the Federal Power Act and all other lawful local, stateand Federal regulation and authority.

Nothing in these commitments isintended to determine in advance the resolution of issues which are properlyraised at the Federal Energy Regulatory Commission concerning suchcommitments, including allocation of costs or the rates to be charged.

Thelicensee will negotiate (including the execution of a contingent statement ofintent) with respect to the foregoing commitments with any neighboring entityincluding distribution systems where applicable engaging in or proposing toengage in bulk power supply transactions, but the licensee shall not berequired to enter into any final arrangement prior to resolution of anysubstantial questions as to the lawful authority of an entity to engage in thetransactions.

In addition, the licensee shall not be obligated to enter into a given bulkpower supply transaction if: (1) to do so would violate, or incapacitate it fromperforming, and existing lawful contracts it has with a third party; (2) there iscontemporaneously available to it a competing or alternate arrangement which affords it greater benefits which would be mutually exclusive of sucharrangement; (3) to do so would adversely affect its system operations or thereliability of power supply to its customers, or (4) if to do so would jeopardize the licensee's ability to finance or construct on reasonable terms facilities needed to meet its own anticipated system requirements.

C-5