ML20212M271

Order Approving Transfer of Licenses DPR-66 & NPF-73 from Dlc to Pennsylvania Power Co & Approving Conforming Amends

ML20212M271
Person / Time
Site:	Beaver Valley
Issue date:	09/30/1999
From:	Collins S NRC (Affiliation Not Assigned)
To:	CENTERIOR ENERGY, DUQUESNE LIGHT CO., PENNSYLVANIA POWER CO.
Shared Package
ML20212M268	List: ML20212M266 ML20212M271
References
NUDOCS 9910120327
Download: ML20212M271 (42)

Text

7590-01-P UNITED STATES OF AMERICA NUCLEAR REGULATORY COMMISSION In the Matter of )

)

DUQUESNE LIGHT COMPANY ) Docket Nos. 50-334 and 50-412

) A FIRSTENERGY NUCLEAR )

OPERATING COMPANY )

)

PENNSYLVANIA POWER COMPANY )

)

(Beaver Valley Power Station, )

Units 1 and 2) )

ORDER APPROVING TRANSFER OF LICENSES AND CONFORMING AMENDMENTS 1.

The Duque:ne Light Company (DLC), Ohio Edison Company, and Pennsylvania Power Company (Penn Power) are the licensees of the Beaver Valley Power Station, Unit 1 (BVPS 1).

DLC, Ohio Edison Company, The Cleveland Electric illuminating Company (CEI), and Toledo Edison Company are the licensees of the Beaver Valley Power Station, Unit 2 (BVPS-2). DLC acts as agent for the licensees and has exclusive responsibility for, and control over, the physical construction, operation, and maintenance of BVPS-1 and BVPS-2 as reflected in Operating Ocenses Nos. DPR-66 and NPF-73. With the exception of DLC, Penn Power and each of the remaining licensees are wholly owned subsidiarice of FirstEnergy Corporation (FE).

The U.S. Nuclecr Regulatory Commission (NRC) issued Operating License No. DPR-66 on July 2,1976, and Operating License No. NPF-73 on August 14,1987, pursuant to Part 50 of Title 10 of the Code of FederalRegulations (10 CFR Part 50). The facility is located in Beaver County, Pennsylvania.

9910120327 990930 PDR ADOCK 05000334 p PDR i

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Under cover of a letter dated May 5,1999, DLC and FirstEnergy Nuclear Operating Company (FENOC), acting for itself and on behalf of Penn Power, jointly submitted an application requesting license transfer approvals with respect to Operating Licenses DPR 66 and NPF-73 in connection with the proposed transfer of DLC's 47.5-percent ownership interest in BVPS-1 and DLC's 13.74-percent ownership interest in BVPS 2 to Penn Power; approval of the transfer of DLC's operating authority under licenses to FENOC; and approval of conforming amendments to reflect the transfers. Supplementalinformation was provided by DLC under cover of letters dated June 22 and July 30,1999 (collectively with the application of May 5, 1999, referred to hereinafter as the " application").

No physical changes will be made to BVPS-1 or BVPS-2 as a result of the proposed transfers, and thero will be no significant change in the operations of BVPS-1 or BVPS-2, according to the application. FENOC would become the agent for the joint owners of the facility and would have exclusive responsibility for the management, operation, maintenance, and eventual decommissioning of BVPS-1 and BVPS-2. The conforming amendments would remove DLC from the facility operating licenses, reflect Penn Power as a comwner of BVPS-2, and indicate that FENOC is the authorized operator of BVPS-1 and BVPS-2.

Approval of the proposed license transfers and conforming license amendments was requested pursuant to 10 CFR 50.80 and 50.90. Notice of the application for approval and an opportunity for a hearing was published in the Federal Register on June 14,1999 (64 FR 31880) Before such notice was published, the Commission received a Petition to Intervene dated June 3,1999, from Local 29, International Brotherhood of Electrical Workers (Local 29).

DLC and FE each filed an answer to the petition on June 16,1959. Local 29 filed its reply to the DLC and_FE answers on June 23,1999, requesting that the Commission deny the DLC and FE answers and grant Local 29's Petition to Intervene as of right. The Commission issued a

L Memorandum and Order' on July 23,1999, denying Local 29's Petition to Intervene and referrea Local 29's comments to the NRC staff for consideration during review of the license transfer application. Subsequently, on September 15,1999, Local 29 filed a Petition to Waive Time Limits in 10 CFR 2.1305 and Supplemental Comments. FE filed an answer to this second petition on September 21,1999, and DLC filed an answer on September 23,1999. The 2

Commission issued a Memorandum and Order on September 24,1999, which granted Local 29 a waiver of the 10 CFR 2.1305 time limits for filing comments and referred Local 29's l 1

comments to the NRC staff for consideration during review of the license transfer application.

Local 29's comments are addressed in the staff's safety evaluation dated September 30, 1999. )1 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 Commission shall give its consent in writing. Upon review of the information contained in the application and other )

information before the Commission, the NRC staff has determined that Penn Power and FENOC are qualified to hold the licenses as proposed in the application, and that the transfer of the licenses, to the extent proposed in the application, is otherwise consistent with applicable provisions of law, regulations, and orders issued by the Commission, subject to the conditions I

set forth herein. The NRC staff has further found that the application for the proposed license amendments 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; 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 the proposed license amendments can be conducted without endangering the health and safety of the public and that such activities will be conducted in compliance with Duquesne Upht Company. et at. (Beaver Valley Power station, units 1 and 2). CLI-99 23,59 NRC _ slip. op. (July 23,1999).

2. Duquesne Ught Company, et al. (Beaver Valley Power station, units 1 and 2), CLI-99-25,59 NRC _ slip. op.

(september 24,1999).

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the Commission's regulations; the issuance of the proposed license amendments will not be inimical to the common defense and security or to the health and safety of the public; and the issuance of the proposed amendments will be in accordance with 10 CFR Part 51 of the Commission's regulations, and all applicable requirements have been satisfied. The foregoing findings are supported by a safety evaluation dated September 30, 1999.

Ill.

Accordingly, pursuant to Sections 161b,1611, and 184 of the Atomic Energy Act of 1954, as amended; 42 USC @$ 2201(b),2201(i), and 2234; and 10 CFR 50.80, IT IS HEREBY ORDERED that the license transfers referenced above are approved, subject to the following conditions:

(1) All decommissioning funding arrangements pertaining to the transfer of DLC's ownership interests to Penn Power, as set forth in the application and the safety evaluation supporting this Order, shall be implemented and fulfilled.

(2) Penn Power and FENOC shall, prior to completion of the subject transfers, provide the Director, Office of Nuclear Reactor Regulation, satisfactory documentary evidence that Penn Power and FENOC have obtained the appropriate amount of insurance requ: red of licensees under 10 CFR Part 140 of the Commission's regulations.

(3) After the receipt of all required regulatory approvals of the transfer of DLC's interest in BVPS-1 and BVPS-2 to Penn Power, and operating authority to FENOC, FENOC shall inform the Director, Office of Nuclear Reactor Regulation,in writing, of such receipt within five business days, and of the date of the closing of the transfer no later than seven business days prior to the date of closing. Should the transfer not be comnleted by September 30, 2000, this Order shall become null and void, provided, however, on application anc for good cause shown, such date may be extended.

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5-IT IS FURTHER ORDERED that, consisten,t with 10 CFR 2.1315(b), license amendments that i make changes, as indicated in the attachment to this Order, to conform the licenses to reflect i the subject license transfers are approved. Such amendments shall be issued and made effective at the time the proposed license transfers are completed.

This Order is effective upon issuance.

For further details with respect to this Order, see the initial application dated May 5,1999, as supplemented June 22, and July 30,1999, and the safety evaluation dated September 30, 1999, which are available for public inspection at the Commission's Public Document j Room, the Gelman Building,2120 L Street, NW., Washington, DC, and at the local public document room located at the B. F. Jones Memorial Library,663 Franklin Avenue, Aliquippa, PA 15001.

I Dated at Rockville, Maryland, this30ttday of ' September 1999. I FOR THE NUCLEAR REGULATORY COMMISSION 4

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"u- . o lins, irector Office of Nuclear Reactor Regulation I

g840 09 h \ UNITED STATES

[ l[ NUCLEAR REGULATORY COMMISSION g 't ' WASHINGTON, D.C. 20555-0001 s...../

DUQUESNE LIGHT COMPANY OHIO EDICON COMPANY PENNSYLVANIA POWER COMPANY DOCKET NO. 50-334 -

BEAVER VALLEY POWER STATION. UNIT NO.1 AMENDMENT TO FACILITY OPERATING LICENSE Amendment No.

License No. DPR 66

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

A. The application for amendment by Duquesne Light Company and FirstEnergy Nuclear OperatinD Company (FENOC) dated May 5,1999, as supplemented June 22 and July 30,1999, 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 l

E. The issuance of this amendment is in accordance with 10 CFR Part 51 of the '

Commission's regulations and all applicable requirements have been satisfied.

' FENOC is authorized to act as agent for Ohio Edison Company and Pennsylvania Power Company.

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2. ' Accordingly, Facility Operating License No. DPR-66 is hereby amended as indicated in the attachments hereto.

~ 3. This license amendment is effective as of the date of its issuance and shall be implemented within 30 days.

FOR THE NUCLEAR REGULATORY COMMISSION -

Samuel J. Collins, Director Office of Nuclear Reactor Regulation

- Attachments: Changes to the License Date of issuance:

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ATTACHMENT TO LICENSE AMENDMENT NO.

FACILITY OPERATING LICENSE NO. DPR-66 DOCKET NO.53-334 Replace the following r. ges of the 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 insert 1 1 2 2 3 3 4 4 6 6 6a 6a Replace the following pages of Appendix C with the attached revised pages. The revised pages are identified by amendment number and contain marginal lines indicating the areas of change.

Remove Lnse_rt 1 1 2 2

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fM0 0 4" UNITED STATES NUCLEAR REGULATORY COMMISSION If WASHINGTON, D.C. 20555-0001

• • • • • ,o FIRSTENERGY NUCLEAR OPERATING COMPANY OHIO EDISON COMPANY PENNSYLVANIA POWER COMPANY DOCKET NO. 50-334 BEAVER VALLEY POWER STATION. UNIT NO.1 FACILITY OPERATING LICENSE Amendment No. 4 License No. DPR-66

1. The Nuclear Regulatory Commission (the Commission) having found that:

A. The application for license filed by FirstEnergy Nuclear Operating Company (FENOC)' acting on its own behalf and as agent for Ohio Edison Company, and Pennsylvania Power Company (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. Construction of the Beaver Valley Power Station, Unit No. I (facility), has been substantially completed in conformity with Construction Permit No. CPPR-75 and the application, as amended, the provisions of the Act and the rules and regulations of the Commission; C. The facility will operate in unformity with the application, as amended, the provisions of the Act, and the rules and regulations of the Commission; D. There :s reasonable acurance: (i) that the activities authorized by this amended 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 rules and regulations of the Commission; E. FENOC is technically qualified and the licensees are financially qualified to engage in the activities authorized by this amended operating license in accord ,

rules and regulations of the Commission; j F. The licensees have satisfied the applicable provisions of 10 CFR Part 140,  !

" Financial Protection Requirements and indemnity Agreements," of the l I

Commission's regulations; l

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• FENOC is authorized to act as agent for Ohio Edison Company and Pennsylvania Power l Company, and has exclusive responsibility and control over the physical construction, operation.

and maintenance of the facility.

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G. The issuance of this amended operating license will not be inimical to the common defense and security or to the health and safety of the public; H. After weighing the environmental, economic, technical, and other benefits of the facility against environmental and other costs and considering rivailable alternatives, the issuance of Amendment No. 4 to Facility Operating License No. OPR-66 is in l accordance with 10 CFR Part 51 (formerly Appendix D of 10 CFR Part 50) of the CommissiuA regulations and all applicable requirements have been satisfied; and I. The receipt, possession, and use of soume, byproduct, and special nuclear material I as authorized by this amended license wiii be in accordance with the Commission's l regulations in 10 CFR Parts 30,40, and 70, including 10 CFR Sections 30.33, i 40.32,70.23, and 70.31. I

2. Facility Operating License No. DPR-66 issued to FENOC, Ohio Edison Company, and Pennsylvania Power Company is hereby amended in its e. .irety to read as follows:

A. This amended license applies to the Beaver Valley Power Station, Unit No. I, a j pressurized water nuclear reactor and associated equipment (the facility), owned by )

Ohio Edison Company and Pennsylvania Power Company, and operated by  ;

FENOC. The facility is located in Beaver County, Pennsylvania, on the southern l

shore of the Ohio River, and is described in the " Final Safety Analysis Report" as j

supplemented and amended (Amendments 1 through 21) and the Environrnental Report as amended (Supplements 1 through 6).

B. Subject to the conditions and requirements incorporated herein, the Commission hereby licenses-(

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(1) FENOC, pursuant to Section 104b of the Act and 10 CFR Part 50," Licensing l of Production and Utilization Facilities," to possess, use, and operate the facility and Ohio Edison Company, and Pennsylvania Power Company to l possess the facility at the designated location in Beaver County, Pennsylvania in accordance with the procedures and limitations set forth in this amended license; (2) FENOC, pursuant to the Act and 10 CFR Part 70, to receive, possess, and l use at any time special nuclear material as reactor fuel, in accordance with the limitations for storage and amounts reguired for reactor operation, as described in the Final Safety Analysis Report, as supplemented and amended; l

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(3) FENOC, 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 nuc' ear material as sealed neutron sources for reactor startup, sealed sources for j reactor instrumentation and radiatiors monitoring equipment calibration, and as fission detectors in amounts as required; (4) FENOC, pursuant to the Act and 10 CFR Parts 30,40, and 70, to receive, possess and use in amounts as required any byproduct, source, or special ,

nuclear material without restriction to chemical or physical form, for sample l analysis or instrument calibration or associated with radioactive apparatus or l components;

)

. (5) FENOC, pursuant to the Act and 10 CFR Parts 30, and 70, to possess, but not separate, such byproduct and special nuclear materials as may be l produced by the operation of the facility.

C. This amended license shall be deemed to contain and is subject to the conditions specified in the following Commission regulations in 10 CFR Chapter I: Part 20, 1 Section 30.34 of Part 30, Section 40.41 of Part 40, Sections 50.54 and 50.59 of Part 50, and Section 70.32 of Part'70; and is subject to all applicable provisions of the Act and to the rules, regulations, and orders of the Commission now or hereaf ter in effect; and is subject to the additional conditions specified or incorporated below:

(1) Maximum Power I.evel FENOC is authorized to operate the facility at a steady state reactor core j power level of 26.52 megawatts thermal. '

(2) Technical Specifications The Technical Specifications contained in Appendix A, as revised through Amendment No. , are hereby incorporated in the license. The licensee shall operate the facility in accordance with the Technical Specifications.

(3) Auxiliary River Water System (Deleted by Amendment No. 8) I 1

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Amendment No.

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(3) Less Than Three Loop Operation {

I FENOC shall not opecte ihe reactor at power levels above P-7 (as defined in l l Table 3.3-1 of Soecif; eio 9.3.1.1 of the Technical Specifications, Appendix  !

A) with less than thres (3) reactor coolant loops in operation until safety I analyses for less than three loop operation have been submitted by the licensees and approval for less than three loop operation at power levels l above P-7 has been granted by the Commission by amendment of this i license. l (4) Steam Generator Water Rise Rate Deleted per License Amendment No. 24.

l (5) Fire Protection Proaram FENOC shallimplement and maintain in effect all provisions of the approved fire protection program as described in the Updated Final Safety Analysis l

Report (UFSAR) for the facility, subject to the following provision: FENOC l may make changes to the approved fire protection program without prior approval of the Commission onlyif those changes would not adversely affect the ability to achieve and maintain safe shuidown in the event of a fire.

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4 Amendment No.

(6) Systems Intearity FEN'OC shall implement a program to reduce leakage from systems outside l

containment that would or could contain highly radioactive fluids during a serious transient or accident to as low as practical levels. This program shall include the following:

1. Provisions establishing preventive maintenance and periodic visual inspection requirements, and

2. Integrated leak test requirements for each system at a frequency not to exceed refueling cycle intervals.

'(7) lodine Monitorina FENOC shall implement a program which will ensure the capability to l

accurately determine the airborne iodine concentration in vital areas under accident conditions. This program shallinclude the following:

1. Training of personnel,

2. Procedures for monitoring, and

3. Provisions for maintenance of sampling and analysis equipment.

(8) Backup Method for Determinina Subcoolina Marain FENOC shall implement a program which will ensure the capability to l accurately monitor the Reactor Coolant System subcooling margin. This program shall include the following:

1. Training of personnel, and

2. Procedures for monitoring.

(9) Steam Generator Surveillance Interval Extension The performance interval for the steam generator surveillance requirement identified in the licensee's request for surveillance irnerval extension dated November 11,1998, shall be extended to coincide with the Cycle 13 refueling outage or the end of 500 effective full power days, whichever is sooner. This surveillance will not extend beyond June 15,2000.

Amendment No.

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(10) Additional Condi' ions The Additional Conditions contained in Appendix C, as revised through Amendment No. , are hereby incorporated into this license. FENOC shall l

operate the facility in accordance with the Additional Conditions.

2. D. Physical Protection FENOC shall fully implement and maintain in effect all provisions of the following l

Commission approved documents, including amendments and changes made pursuant to the authority of 10 CFR 50.54(p). These approved documents consist of information withheld from public disclosure pursuant to 10 CFR 2.790(d):

(1) " Beaver Valley Power Station, Unit No.1, Physical Security Plan", Revision 1, dated October 31,1977, as supplemented by Revision 2 dated May 15,1978, Revision 3 dated February 21,1979.

i (2) The NRC approved Safeguards Contingency Plan as transmitted by letter of l Me-522,1980. )

I (3) " Beaver Valley Power Station Guard Training and Qualification Plan", submitted by letter, dated August 16,1979, as revised by letter dated September 26,1980. This Plan shall be fully implemented in accordance with 10 CFR 73.55(o)(4), within 60 days of this approval by the Commission. All security personnel shall be qualified within two years of this approval.

E. All work and activities in connection with this project shall be performed pursuant to the provisions of the Commonwesith of Pennsylvania Clean Streams Acts of June 24,1913, as amended and of June 22,1937, as amended, and in accordance with all permits issued by the Department of Environmental Resources of the Commonwealth of Pennsylvania.

2. F. This amended license is effective as of the date of issuance and shall expire at midnignt j on January 29,2016. l l

FOR THE NUCLEAR REGULATORY COMMISSION i ORIGINAL SIGNED BY R. S. BOYD Roger S. Boyd, Director Division of Project Management Office of Nuclear Reactor Regulation Date of issuance: July 2,1976 Amendment No.

APPENDIX C ADDITIONAL CONDITIONS OPERATING LICENSE NO. DPR-66 FirstEnergy Nuclear Operating Company, Ohio Edison Company, and Pennsylvania Power Company shall comply with the following conditions on the schedules noted below:

Amendment Additional Condition implementation Number - Date 202 The licensee is authorized to relocate certain The amendment Technical Specification requirements to shall be licensee-controlled documents. Implementation implemented of this amendment shallinclude the relocation within 60 days of these technical specification requirements from April 14, to the appropriate documents, as described in 1997 the licensee's application dated September 9, 1996 ind evaluated in the staff's safety eval' .)n attached to this amendment.

208 The licensee commits to perform the post weld The amendment heat treatmont of sleeve welds and the shall be NRC-recommended inspections for repaired tubes implemented as described in the licensee's application within 60 days dated March 10,1997, as supplemented July 28 from and September 17,1997, and evaluated in the November 25, staff's safety evaluation attached to this 1997 amendment.

209 The licensee is authorized to relocate certain The amendment Technical Specification requirements to shall be licensee-controlled documents, implementation implemented of this amendment shallinclude the relocation within 60 days of these technical specification requirements from to the appropriate documents, as described in December 10, the licensee's application dated March 14, 1997 1997, as supplemented July 29 and August 13, 1997, and eva!uated in the staff's safety evaluation attached to this amendment.

210' The licensee is authorized to relocate certain The amendment Technical Specification requirements to shall be licensee-controlled documents. Implementation implemented of this amendment shallinclude the relocation within 30 days of these technical specification requirements from to the appropriate documents, as described in January 20,1998 the licensee's application dated September 11, 1997, and evaluated in the staff's safety evaluation attached to this amendment.

1 Amendment No.

APPENDIX C ADDITIONAL CONDITIONS OPERATING LICENSE NO. DPR-66 FirstEnergy Nuclear Operating Company, Ohio Edison Company, and Pennsylvania Power Company shall comply with the following conditions on the schedules noted below: >

Amendment Additional Condition implementation Number Date i

225 The licensee is authorized to relocate certain The amendment Technical Specification requirements to shall be licensee-controlled documents. Implementation implemented of this amendment shallinclude the relocation within 60 days of these Technical Specification requirements from August 30, (

to the appropriate documents as described in 1999 )

the licensee's application dated December 24, 1998, as supplemented June 15, June 17, and <

July 7,1999, and evaluated in the staff's safety evaluation attached to this amendment.

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4 2 Amendment No,

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pt**06 0" t UNITED STATES j

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2-NUCLEAR REGULATORY COMMISSION WASHINGTON, D.C. 20555-0001

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DUQUESNE LIGHT COMPANY ,

OHIO EDISON COMPANY THE CLEVELAND ELECTRIC ILLUMINATING COMPANY THE TOLEDO EDISON COMPANY DOCKET NO. 50-412 BEAVER VELEY POWER STATION. UNIT 2 AMENDMENT TO FACILITY OPERATING LICENSE Amendment No.

License No. NPF-73 '

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

A. The application for amendment by Duquesne Light Company and FirstEnergy Nuclear Operating Company (FENOC)' dated May 5,1999, as supplemented June 22, and July 30,1999, complies with the standards and requirements of the )

Atomic Energy Act of 1954, as amended (the Act), and the Commission's rules !md j regulations set forth in 10 CFR Chapter I; i B. The facility v:;ll 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 10 CFR Part 51 of the Commission's regulations and all applicable requirements have been satisfied.

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' FENOC is authorized to act as agent for Ohio Edison Company, The Cleveland Electric illuminating Company, Tne Toledo Edison Company, and Pennsylvania Power Company,

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2. Accordingly, Facility Operating License No. NPF-73 is hereby amended as indicated in the attachments hereto.

3. This license amendment is effective as of the date of its issuance and shall be implemented within 30 days.

FOR THE NUCLEAR REGULATORY COMMISSION Samuel J. Collins, Director Office of Nuclear Reactor Regulation Attachments: Changes to the License Date of Issuance:

ATTACHMENT TO LICENSE AMENDMENT NO.

FACILITY OPERATING LICENSE NO. NPF-73 DOCKET NO. 50-412 Replace the following pages of the 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 insert 1 1 2 2 3 3 3a 3a 5 5 6 6 7 7 Replace the following pages of Appei. dix B with the attached revised pages. The revised pages are identified by amendment number and contain marginal lines indicating the areas of change.

Remove Insert Appendix B Cover Page Appendix B Cover Page 1 1 Replace the following pages of Appendix D with the attached revised pages. The revised pages are identified by amendment number and contain marginal lines indicating the areas of change.

Remove insert 1 1 2 2 l

l "Guq g*, 4 UNITED STATES l

.o. S NUCLEAR REGULATORY COMMISSION I

' \ * *~lf WASHINGTON, D.C. 20$wou01 FIRSTENERGY NUCLEAR OPERATING COMPANY PENNSYLVANIA POWER COMPANY OHIO EDISON COMPANY THE CLEVELAND ELECTRIC ILLUMINATING COMPANY j THE TOLEDO EDISON COMPANY DOCKET NO. 50-412 BEAVER VALLEY POWER STATION. UNIT 2 FACILITY OPERATING LICENSE License Nc. NPF-73 1 The Nuclear Regulatory Commission (the Commission or the NRC) has found that:

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A. The application for license filed by FirstEnerpy Nuclear Operating Company (FENOC)* acting on its own behalf and as agent for Pennsylvania Power Company, i Ohio Edison Company, The Cleve!and Electric Illuminating Company, and The )

Toledo Edison Company (the licensees), comp l!as with the standards and requirements of the Atomic Energy Act of 1954, as amended (the Act), and the Commission's regulations set forth in 10 CFR Chapter I, and all required notifications to other agencies or bodies have been duty made; B. Construction of the Beaver Valley Power Station, Unit 2 (the facility), has been substantially completed in conformity with Construction Permit No. CPPR-105 and J the application, as amended, the provisions of the Act, and the regulations of the Commission; C. The facility will operate in conformity with the application, as amended, the ,

provisions of the Act, and the regulations of the Commission (except as exempted from compliance in Section 2.D. below);

D. There is reasonable assurance: (i) that the activities authorized by this 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 set forth in 10 CFR Chapter I (except as exempted from compliance in Section 2.D. below);

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• FENOC is authorized to act as agent for Pennsylvania Power Company, Ohio Edison l Company, The Cleveland Electric illuminating Company, and The Toledo Edison Company and has exclusive responsibility and control over the physical construction, operation, and maintenance of the facility. -

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E. FENOC is technically qualified to engage in the activities authorized by this license in accordance with the Commission's regulations set forth in 10 CFR Chapter I; F. The licensees 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 license will not be inimical to the common defense and security or to the health and safety of the public; H. Af ter weighing the environmental, economic, technical, and other benefits of the facility against environmental and other costs and considering available alternatives, the issuance of this Facility Operating License No NPF-73 is subject to the conditions for protection of the environment set forth in the Environmentr; Protection Plan attached as Appendix B, is in accordance with 10 CFR Part 51 of the Commission's regulations, and all applicable requirements have been satisfied;

l. The receipt, possession and use of source, byproduct and special nuclear material  ;

as authorized by this license will be in accordanco with the Commission's {

regulations in 10 CFR Parts 30,40, and 70.

2. Based on the foregoing findings, review by the Nuclear Regulatory Commission at a j meeting on July 8,1987, and approval by the Commission on August 13,1987, the j License for Fuel Loading and Low Power Testing, License No. NPF-64, issued on May 28,1987, is superseded by Facility Operating License NPF-73, hereby issued to FENOC, Pennsylvania Power Company, Ohio Edison Company, The Cleveland Electric l l Illuminating Company, and The Toledo Edison Company (the licensees) to read as follows:

A. This amenced license applies to the Beaver Valley Power Station, Unit 2, a pressurized water reactor and associated equipment (the facility), owned by Pennsylvania Power Company, Ohio Edison Company, The Cleveland Electric illuminating Company, and The Toledo Edison Company and operated by FENOC. l The facility is located on the licensees' site on the southern shore of the Ohio River in Beaver County, Pennsylvania, approximately 22 miles northwest of Pittsburgh and 5 miles east of East Liverpool, Ohio, and is described in FENOC's Final Safety l

' Analysis Report, as supplemented and amended, and in its Environmental Report, as supplemented and amended; B. Subject to the conditions and requirements incorporated herein, the Commission hereby licenses:

(1) Pursuant to Section 103 of the Act and 10 CFR Part 50, FENOC to possess, l )

use, and operate the facility at the designated location in Beaver County, i Pennsylvania, in accordance with the procedures and limitations set forth in this license; 4

(2) Pursuant to the Act and 10 CFR Part 50, Pennsylvania Power Company, Ohio l Edison Company, The Cleveland Electric illuminating Company, and The Toledo Edison Company to possess the facility at the designated location in Beaver County, Pennsylvania, in accordance with the procedures and ,

limitations set forth in the license; I (3) Pursuant to the Act and 10 CFR Part 70, FENOC, to receive, possess, and l )

use at any time special nuclear material as reactor fuel, in accordance with the lirnitations for storage and amounts required for reactor operation, as described in the Final Safety Analysis Report, as supplemented and amended; (4) Pursuant to the Act and 10 CFR Parts 30,40, and 70, FENOC to receive, l possess, and use at any time any byproduct, source, and special nuclear material such as sealed neutron sources for reactor startup, sealed sources i for reactor instrumentation and radiation monitoring equipment calibration, i and as fission detectors in amounts as required; (5) Pursuant to the Act and 10 CFR Parts 30,40, and 70, FENOC to receive.

l possess, and use in amounts as required any byproduct, source, or special nuclear material without restriction to chemical or physical form, for sample analysis or instrument calibration or other activity associated with radioactive apparatus or components; j (6) Pursuant to the Act and 10 CFR Parts 30,40, and 70, FENOC to possess, but l not separate, such byproduct and special nuclear materials as may be .

produced by the operation of the facility authorized herein.

l (7) (a) Pennsylvania Power Company, Ohio Edison Company, The Cleveland j Electric illuminating Company, and The Toledo Edison Company are 1 authorized to transfer any portion of their respective 13.74 %,41.88 %, I 24.47%, and 19.91% ownership interests in BVPS Unit 2 and a proportionate share of their ownership interests in the BVPS common ,

facilities to certain potential investors identified in their submittals of 1 July 14,16,22 and 31, and September 14,17 and 18,1987, and at the )

same time to lease back from such purchasers such interest transferred in the BVPS Unit 2 facility. The term of the lease is for approximately 29-1/2 years subject to a right of renewal. Such sale and leaseback transactions are subject to the representations and conditions set forth in the aforementioned submittals. Specifically, a lessor and anyone else who I

may acquire an interest under these transactions are prohibited from exercising directly or indirectly any control over the license of BVPS Unit 2. I For purposes of this condition the limitations in 10 CFR 50.81, as now in j effect and as may be subsequently amended, are fully applicable to the  !

lessor and any successor in interest to that lessor as long as the license I for BVPS Unit 2 remains in effect; these financial i l

Amendment No. l l

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transactions shall have no effect on the license for the BVPS Unit 2 facility throughout the term of the license.

(b) Further, the licensees are also required to notify the NRC in writing prior to any change in: (i) the term or conditions of any lease agreements executed as part of these transactions; (ii) the BVPS Operating Agreement, (iii) the existing property insurance coverage for BVPS Unit 2, and (iv) any action by a lessor or others that may have adverse effect on the safe operation of the facility.

C. This license shall be deemed to contain and is subject to the conditions specified in the following Commission regulations set forth in 10 CFR Chapter I 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 is subject to the additional conditions specified or incorporated below:

(1) Maximum Power Level FENOC is authorized to operate the facility at reactor core power levels not in l excess of 2652 megawatts thermal (100 percent power) in accordance with the conditions specified herein.

(2) Technical Soecifications The Technical Specifications contained in Appendix A, as revised through Amendment No. , and the Environmental Protection Plan contained in Appendix B, both of which are attached hereto are hereby incorporated in the j license. FENOC shall operate the facility in accordance with the Technical l l Specifications and the Environmental Protection Plan. i i

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(8) Detailed Control Room Desian Review (DCRDR)

Deleted (9) Safety Parameter Disolav System (SPDS)

Deleteo (10) Fire Protection Modifications (Section 9.5.1 of SER Supplement 6)

Deleted -

(11) Additional Conditions The Additional Conditions contained in Appendix D, as revised through Amendment No. , are hereby incorporated into this license. FENOC shall l operate the facility in accordance with the Additional Conditions. .

D. Exemotions

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The following exemptions are authorized by law and will not endanger life or property or the common defense and security, and certain special circumstances are present. With the granting of these exemptions, the facility will operate, to the ,

extent authorized herein, in conformity with the application, as amended, the provie'or s of the Act, and the rules and regulations of the Commission. f (1) The facility requires an exemption from the requirements of General Design Criterion (GDC) 4, Appendix A to 10 CFR 50. The staff has described in detail in Supplement 4 and Supplement 5 to the Safety Evaluation Report the technical basis and "special circumstances" associated with this exemption.

The staff's environmental assessment was published on March 27,1987 (52 j FR 9979). Therefore, puruant to 10 CFR 50.12(a)(1),10 CFR 50.12(a)(2)(ii) and (iv), Beaver Valley Power Station, Unit 2 is exempt from the requirements .

of GDC 4, Appendix A to 10 CFR 50 with respect to the dynamic loading effects associated with the p&iated pipe braaks described in detail in Sectic:. 3.6.3 of Supplement 4 to the Safety Evaluation Report. These

! dynamic loading effects include pipe whip, jet impingement, and break-associated dynamic transients. Specifically, this eliminates the need to install ,

jet impingement barriers and pipe whip restraints associated with postulated

_ pipe breaks in the pressurizes surge line, reactor coolant bypass system, e 1 l

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- BEAVER VALLEY - UNIT 2 Amendment No.

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safety injection system, and residual heat removal system. This exemption will expire when the current GDC 4 rulemaking changes have been completed.

(2) The facility requires an exemption from the requirements of 10 CFR 50, Appendix J, Section Ill.D.2(b)(ii). The justification of this exemption is contained in Section 6.2.6 of Supplement 5 to the Safety Evaluation Report and modified by a letter dated July 26,1995. The staff's environmental assessment was published on May 12,1987 (52 FR 17651) and on June 9, 1995 (60 FR 30611). Therefore, pursuant to 10 CFR 50.12(a)(1) and 10 CFR 50.12(a)(2)(ii) and (iii), Beaver Valley Power Station, Unit 2 is exempt from the ,

quoted requirements and instead, is required to perform the everall air lock leak test at pressure P, before establishing containment integrity if air lock maintenance has been performed that could affect the air lock sealing capability. Local leak rate testing at a pressure of not less than P, may be substituted for an overall air lock test where the design permits.

(3) The facility was previously granted an exemption from the enticality alarm requirements of 10 CFR 70.24 (see License No. SNM-1954) dated April 9, 1986, which granted this exemption). Beaver Valley Power Station, Unit 2 is i hereby exempted from the criticality alarm system provisions of 10 CFR 70.24 so far as this section applies to the storage of fuel assemblies held under this license.

E. Physical Security FENOC shall fully implement and maintain in effect all provisions of the physical l security, guard training and qualification, and safeguards contingency plans previously approved by the Commission and all amendments and revisions to such plans made pursuant to the authority of 10 CFR 50.90 and 10 CFR 50.54(p). The plans, which contain safeguards information protected under 10 CFR 73.21 are l entitled:

" Beaver Valley Power Station Security Plan," with revisions submitted through April 15,1987;

• Beaver Valley Power Station Security Training and Qualification Plan," with revisions submitted through April 15,1987; and Beaver Valley Power Station Security Contingency Plan," with revisions I submitted through February 19,1987.

l F. Fire Protection Proaram (Section 9.5.1 of SER Supplement 3)

FENOC shallimplement and maintain in effect all provisions of the approved fire l protection program as described in the Final Safety Analysis Report through Amendment No.17, and submittals dated May 18, May 20, May 21, June 24 and July 6,1987, and as described in the Safety Evaluation Report dated October 1985, and Supplements 1 through 6, subject to the following provision:

Amendment No.

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I FENOC may make changes to the approved fire protection program without prior approval of .the Commission only if those changes would not adversely affect the ability to achieve and maintain safe shutdown in the event of a fire.

G. Reoortina to the Commission DELETED H. Financial Protection The licensee shall hr ve and maintain financieJ protection of such type and in such amounts as the Commission shall require in accordance with Section 170 of the Atomic Energy Act of 1954, as amended, to cover public liability claims.

l. Expiration This license is effective as of the date of issuance and shall expire at midnight on May 27, 2027.

FOR THE NUCLEAR REGULATORY COMMISSION ORIGINAL SIGNED BY:

Thomas E.' Murley, Director Office ,of Nuclear Reactor Regulation

Enclosures:

1. Appendix A - Technical Specifications (NUREG-1279)

2. Appendix B - Environmental Protection Plan Date of Issuance: August 14,1987 l

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Amendment No.

APPENDIX B TO FACILITY OPERATING LICENSE NO. NPF-73 BEAVER VALLEY POWER STATION UNIT 2 FIRSTENERGY NUCLEAR OPERATING COMPANY, ET AL l DOCKET NO. 50-412 ENVIRONMENTAL PROTECTION PLAN (NONRADIOLOGICAL)

August 1987 4

1.0 Obiectives of the Environmental Protection Plan The Environmental Protection Plan (EPP) is to provide for protection of nonradiological environmental values during operation of the Beaver Valley Power Station, Unit 2 (facility). The principal objectives of the EPP are as follows:

'(1) Verify that the facility is operated in an environmentally acceptable manner, as established by the Final Environmental Statement - Operating License Stage (FES-OL)

. and other NRC environmental impact assessments.

(2) Coordinate NRC requirements and maintain consistency with other Federal, State, and local requirements for environmental protection.

(3) Keep NRC informed of the environmental effects of facility construction and operation and of actions taken to control those effects.

Environmental concerns identified in the FES-OL (September 1985, NUREG-1094) which relate to water quality matters are regulated by way of the licensee's* NPDES permit.

2.0 Environmental Protection issues in the FES-OL (NUREG-1094, September 1985), the staff considered the environmental {

impacts associated with the operation of the Beaver Valley Power Station, Unit 2. No {

aquatic / water quality, terrestrial, or noise issues were identified.

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3.0 Consistency Reauirements 3.1 Plant Desion and Operation The licensee may make changes in station design or operation or perform tests or experiments affecting the environment provided such activities do not involve an unreviewed environmental question and do not involve a change in the EPP*. Changes in station design or operation or performance of tests or experiments which do not affect the environment are not subject to the requirements of this EPP. Activities govemed by Section 3.3 are not subject to the requirements of this Section. s Before engaging in additional construction or operational activities which may significantly affect  ;

the environment, the licensee shall prepare and record an environmental evaluation of such l activity. Activities are excluded from this requirement if all measurable nonradiological environmental effects are confined to the on-site areas previously disturbed during site preparation and plant construction. When the evaluation lodicates that such activity involves an i unreviewed environmental question, the licensee shall provide a written evaluation of such actNity and obtain prior NRC approval. Such activity and change to the EPP may be implemented only in accordance with an appropriate license amendment as set forth in Section 5.3 of this EPP.

• " Licensee" refers to FirstEnergy Nuclear Operating Company, operator of the facWty, and acting as agent for Pennsylvania Power Cumpany, Ohio Edison Company, The Cleveland Electric illuminating Company, and The Toledo Edison Company, owners of the facility.

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APPENDIX D ADDITIONAL CONDITIONS OPERATING LICENSE NO. NPF-73 FirstEnergy Nuclear Operating Company, Pennsylvania Power Company, Ohio Edison Company, The Cleveland Electric illuminating Company, and The Toledo Edison Company shall comply with the following conditions on the schedules noted below:

Amendment Additional Condition implementation Number Date j 83 The licensee is authorized to relocate certain The amendment Technical Specification requirements to shall be licensee-controlled documents. Implementation implemented of this amendment shallinclude the relocation within 60 days of these technical specification requirements from April 14, to the appropriate documents, as described in 1997 the licensee's application dated September 9, 1996, and evaluated in the staff's safety ,

evaluation attached to this amendment.

87 The 'icensee is authorized to relocate certain The amendment j Technical Specification requirements to shall be licensee-controlled documents. Implementation implemented of this amendment shallinclude the relocation within 60 days of these technical specification requirements from December 10, to the appropriate documents, as described in 1997 the licensee's application dated March 14, 1997, as supplemented July 29 and August 13, 1997, and evaluated in the staff's safety evaluation attached to this amendment.

88 The licensee is authorized to relocate certain The amendment Technical Specification requirements to shall be licensee-controlled documents. Implementation implemented of this amendment shallinclude the relocation within 30 days of these technical specification requirements from to the appropriate documents, as described in January 20,1998 the !!ce. wee's application dated September 11, 1997, and evaluated in the staff's safety evaluation attached to this amendment.

98 The licensee commits to perform visual The amendment acceptance examinations of sleeve welds; post shaybe weld heat treatment of sleeve welds; and the implemented NRC recommended inspections of repaired tubes within 60 days as described in the licensee's application from dated March 10,1997, as supplemented July 28, March 26,1999 1997, September 17,1997, April 30,1998, and January 29,1999, and evaluated in the staff's safety evaluation attached to this amendment.

1 Amendment No.

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APPENDIX D ADDITIONAL CONDITIONS i

OPERATING LICENSE NO. NPF-73 FirstEnergy Nuclear Operating Company, Pennsylvania Power Company, Ohio Edison Company, The Cleveland Electric lituminating Company, and The Toledo Edison Company shall comply with the following cond;tions on the schedules noted below:

Amendment Additional Condition Implementation Number Date 102 The licensee is authorized to relocate certain The amendment Technical Specification requirements to sha!! be licensee-controWed documents. Implementation implemented of this amendment shallinclude the relocation within 60 days of these Tec:'nical Specification requirements from August 30, to the apprcpriate documents as described in 1999 the licensee's application dated December 24, 1998, as supplemented June 15, June 17, and July 7,1999, and evaluated in the staff's evaluation attached to this amendment.

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2 Amendment No.

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p f Mag UNITED STATES l

" ,. NUCLEAR REGULATORY COMMISSION 2 WACMINGTON, D.c. 20566 4 001

.....,o SAFETY EVALUATION' BY THE OFFICE OF NUCLEAR REACTOR REGULATION RELATED TO THE TRANSF_ER OF FACluTY OPERATING LICENSES FROM DUQUESNE LIGHT COMPANY TO PENNSYLVANIA POWER COMPANY AND FIRSTENERGY NUCLEAR OPERATING COMPANY AND APPROVAL OF CONFORMING AMENDMENTS LICENSES NOS. DPR-66 AND NPF-73 BEAVER VALLEY' POWER STATION. UNITS 1 AND 2 DOCKET NOS. 50-334 AND r,0-412 Because of the numerous parties involved in this application, the following acronyms and

, abbreviations are used i,1 the discussion below:

BVPS-1 Beaver Valley Power Station, Unit 1 BVPS-2 Beaver Valley Power Station, Unit 2 '

l BVPS-1 and 2 Beaver Valley Power Station, Units 1 and 2-CAPCO' Central Area Power Coordination Group CEI The Cleveland Electric illuminating Company l DLC Duquesne Light Company. l

FE FirstEnergy Corporation FENOC FirstEnergy Nuclear Opecting Company 4

FERC Federal Energy Regulatory Commission )

IRS Internal Revenue Service j NRC Nuclear Regulatory Commission ]

OE Ohio Edison Company i OES OES Nuclear Incorporated i

PaPUC Pennsylvania Public Utility Commission  !

l Penn Power Pennsylvania Power Company l TE Toledo Edison Company

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1.0 INTRODUCTION

By application dated May 5,1999, as supplemented June 22 and July 30,1999 (collectively "the application" unte.',s ? Msc netW), DLC and FENOC, acting for itself and on behalf of Penn Power, reque.sted Nuclear Ryulatory Commission (NRC) approval of: the direct transfer of Operating Licenses (OLs) DPR-66 and NPF-73 to the extent held by DLC in connection with its l 47.5-percent ownership interest in BVPS-1 and 13.74-percent ownership interest in BVPS-2 to Penn Power; the transfer of DLC's operating authority under the OLs to FENOC; and conforming amendments to reflect the transfer 2;. This application requests that the NRC,

pursuant to 10 CFR 50.80, issue an order consenting to the transfers. Penn Power is an existing co-owner of BVPS-1 but is not currently an existing owner of BVPS-2. The June 22,1999, supplement to the initial application provided clarifying information; the July 30,1999, letter withdrew portions of the amendment request which would have made editorial changes that do not pertain to the transfer of plant ownership or the operating authority. These supplements did not expand the scope of the initial application as originally noticed in the FederalRegister.

2.0 BACKGROUND

FE indirectly owns 52.50-percent of BVPS-1 through its subsidiaries as follows: OE owns 35.00 percent and Penn Power owns 17.5 percent. DLC, an electric utility not a corporate affiliate of FE, currently holds the remaining 47.5 percent ownership interest in BVPS-1, which represents approximately 385 megawatts. FE indirectly owns 86.26 percent of BVPS-2 through its subsidiaries as follows: OE owns 41.88 percent, TE owns 19.91 percent, and CEI owns 24.47 percent. DLC currently holds the remaining 13.74 percent ownership interest in BVPS-2, which represents approximately 113 megawatts. The BVPS-1 and 2 operating licenses currently authorize these companies, all of which are electric utilities, to possess BVPS-1 and 2 as owners. DLC is currently also authorized to operate BVPS-1 and 2.

On October 14,1990, DLC and FE agreed, in principle, to the transfer of 1436 megawatts of capacity owned by 1.>LC at eight (three nuclear and five coal-fired) generating units in exchange for 1328 megawatts of capacity at three coal-fired power plants owned by FE subsidiaries, Penn Power and CEl, subject to the requested regulatory approvals. On March 25,1999, CEI and Penn Power signed a Nuclear Generation Conveyance Agreement (Conveyance Agreement) with DLC,'wherein DLC agreed to convey , and CEI and Penn Power agreed to acquire, DLC's ownership interests in Perry and BVPS-1 and 2 (Perry Nuclear Power Plant, Unit 1, is addressed in a separate Safety Evaluation Report). At the same time, DLC, CEl, and Penn Power signed a Generation Exchange Agreement (Exchange Agreement), which provides for the transfer of CEI and Penn Power wholly owned coal-fired p! ants in Ohio and Pennsylvania to DLC. The three coal-fired plants will then be included in DLC's planned auction of its generating assets pursuant to a restructuring plan approved by the PaPUC on May 29,1998.

Penn Power is a wholly owned subsidiary of OE, which, in turn, is a wholly owned subsidiary of FE. FENOC is a whol'ly owned subsidiary of FE, organized for the purpose of operating nuclear ,

power plants owned by electric subsidiaries of FE. After the proposed transfers, Penn Power j will own DLC's current ownership interests in BVPS-1 and 2, and FENOC will become the  !

licensed operator of BVPS-1 and 2. Implementation of the Conveyance Agreement and the j Exchange Agreement would result in the exchange of nuclear and coal-fired generating assets I such that BVPS-1 and 2 would be wholly owned and operated by FE subsidiaries.

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3.0 FINANCIAL QUALIFICATION ANALYSIS The following financial qualifications analysis is based on the information provided in the y application.

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Penn Power, a Pennsylvania Corporation, is a wholly owned subsidiary of OE, an Ohio Corporation, which, in turn, is a wholly owned subsidiary of FE, another Ohio Corporation. FE is an electric utility holding company registered under the Public Utility Holding Act of 1935.

Penn Power's purpose will remain the same as it is now, which is te engage principally in the generation, transmission, and distribution of electric energy to residential, commercial, and industrial customers in Pennsylvania. Penn Power is an electric utility within the definition set forth in 10 CFR 50.2. Penn Power will continue to generate and distribute electricity and to recover the costs of this electricity through rates authorized by the PaPUC and the FERC.

Therefore, Penn Power submits that it is not required to meet the requirements of 10 CFR 50.33(f) applicable to non-electric utility applicants. The NRC staff finds that Penn Power is, and will remain, an electric utility after the acquisition of DLC's 47.50- percent ownership interest in BVPS-1 and 13.74-percent ownership interest in BVPS-2, and that no further specific demonstration of financial qualifications is needed, consistent with 10 CFR 50.33(f).

Under the " Order Approving Application Regarding Merger Agreement Between Centerior Energy Corporation and Ohio Edison Company Affecting Licenses DPR-66 and NPF-73," dated June 19,1997, Penn Power is already required to provide the Director of the Office of Nuclear Reactor Regulation a copy of any application seeking to transfer from Penn Power those electric utility assets having a depreciated book value exceeding 10-percent of its consolidated net utility plant to any FE affiliated company. This requirement will not be altered and will remain in force after the instant transfer has been completed.

On the basis of the information submitted in the application, the NRC staff finds that Penn Power is financially qualified to hold the BVPS-1 and BVPS-2 licenses to the extent proposed in the application.

The application states, "The FirstEnergy subsidiaries holding ownership interests in Beaver Valley Power Station, Units llo.1 & 2, will be responsible for all operating and maintenance expenses and any other financial obligations arising under the Beaver Valley Power Station, Units No.1 & 2 licenses." In light of the foregoing, and because FENOC is seeking approval with respect to transferring operating authority only, and not authority to own or possess the facility, no separate financial qualifications analysis of FENOC is necessary.

4.0 ANTITRUST The Atomic Energy Act does not require or authorize antitrust reviews of post-OL transfer applications. Kansas Gas and Electric Co.. et. al. (Wolf Creek Generating Station, Unit 1), CLi-99-19,49 NRC _, slip op. (June 18,1999). Therefore, since the transfer application postdates the issuance of the BVPS-1 and 2 operating licenses, no antitrust review is required or authorized.

5.0 FOREIGN OWNERSHIP FENOC is an Ohio corporation. Its principal place of business has been Ohio, and upon tne transfer of the BVPS licenses it will also conduct business in Pennsylvania. Penn Power is a corporation organized and existing under the laws of the Commonwealth of Pennsylvania, and does business in Pennsylvania. The application provides the names and addresses of Penn Power's directors and principal officers, as well as those of FENOC.

According to the application, all of Penn Power's and FENOC's directors and principal officers are citizens of the United States. Additionally, the application states,"neither FENOC nor Penn Power are owned, controlled or dominated by an alien, foreign corporation, or foreign government." The NRC staff does not know or have any reason to believe otherwise.

6.0 DECOMMISSIONING FUNDING

The NRC has determined that the requirements to provide assurance of decommissioning funding and provision of an adequate amount of decommissioning funding are necessary to ensure the adequate protection of public health and safety.

In accordance with 10 CFR 50.33(k), an application for an operating license for a utilization facility must contain information indicating how reasonabie assurance will be provided that funds will be available to decommission the facility.

CEl, OE, TE, Penn Power, and DLC recently filed decommissioning reports with the NRC in accordance with 10 CFR 50.75(f)(1) and are providing financial assurance for decommissioning their respective interests in BVPS-1 and 2 through external sinking funds in which deposits are made at least annually. As rate-regulated entities, all prospective owners of BVPS-1 and 2 are currently allowed to use the external sinking fund method of decommissioning assurance.

Following the transfer of the DLC ownership interest in BVPS-1 and 2, the FE companies will continue to use the external sinking fund method and either have funds available or make additional annual contributions sufficient to meet the NRC minimum fund requirements in 10 CFR 50.75(c), consistent with the financial assurance requirements of 10 CFR 50.75(e), in connection with the transfer of DLC's ownership interest in BVPS-1 and 2, DLC will transfer the existing decommissioning funds of approximately $42.5 million for BVPS 1 and approximately

$8.8 million for BVPS-2, as of December 31,1998, and DLC will provide additional decommissioning funding to cover the shortfall in funding for BVPS-1 and 2 as provided in Section 6.19.1 of the Conveyance Agreement for BVPS-1 and Section 6.19.2 for BVPS-2.

Subject to certain adjustments pursuant to Section 6.19 of the Conveyance Agreement, DLC will provide $25.5 million in additional funds for BVPS-1 for a total of approximately $68.0 million, and $10.3 million in additional funds for BVPS-2 for a total of approximately $19.1 million.- OLC and Penn Power agree to use their best efforts to secure a tax-advantaged transfer of DLC's decommissioning funds. If the necessary IRS rulings are not obtained, DLC will be responsible for ensuring that Penn Power receives an equivalent amount of additional funding on an s.fter-tax basis, as provided in Section 6.19 of the Conveyance Agreement.

The staff f;nds the foregoing decommissioning funding arrangements acceptable, provided their completion is a condition to approval of the transfers of the licenses.

7.0 NUCLEAR INSURANCE

The provision's of the Price-Anderson Act (Section 170 of the Atomic Energy Act) require that Penn Power and FENOC be added (or remain subject) to the current BVPS-1 and BVPS-2 indemnity agreement. In accordance with the Price-Anderson Act, Penn Power and FENOC will also be required to provide primary insurance of $200 million and participate in the secondary retrospective insurance pool. These requirements can be met by purchasing insurance policies from the nuclear liability insurance pool, American Nuclear Insurers. Penn Power and FENOC also will be required to maintain property insurance as specified in 10 CFR 50.54(w). The staff does not have any reason to believe that Penn Power and FENOC will be L

r unable to meet the statutory and regulatory insurance requirements applicable to all power reactor licensees.

Consistent with NRC practice, the staff will require Penn Power and FENOC to provide satisfactory documentary evidence that Penn Power and FENOC have obtained the appropriate an . "Jnt of insurance required of licensees under 10 CFR Part 140 of the Commission's regulations, prior to the issuance of the amended licenses reflecting Penn Power and FENOC as licensees. Since the issuance of the amended licenses is directly tied to the consummation of the transfers, the order approving the transfers will contain the following condition:

Penn Power and FENOC shall, prior to completion of the subject transfers, provide the Director, Office of Nuclear Reactor Regulation, satisfactory documentary evidence that Penn Power and FENOC have obtained the appropriate amount of insurance required of licensees unuer 10 CFR Part 140 of the Commission's regulations.

8.0 TECHNICAL QUALIFICATIONS 8.1 Basis and Guidance for NRC Evaluation in addition to the BVPS-1 and 2 technical specifications (TSs) and Updated Final Safety Analysis Reports (UFSARs), the staff used the following regulations and guidance in performing its evaluation: 10 CFR 50.40(b)," Common Standards"; Standard Review Plan (SRP), NUREG-0800, Section 13.1.1, " Management and Technical Support Organization"; SRP, Sections 13.1.2-13.1.3, " Operating Organizations"; and American National Standards Institute (ANSI)

N18.1-1971, " Selection and Training of Nuclear Power Plant Personnel," as endorsed by Regulatory Guide 1.8, Revision 2," Qualification and Training of Personnel for Nuclear Power Plants, April 1987.

The overall purpose of this review is to ensure that the corporate organization and technical staff of the proposed operating entity, FENOC, are sufficiently qualified to provide support for safe plant operation.

8.2 Evaluation

Management and Technical Support Organization Applying the basis and guidance for NRC evaluation, listed at the beginning of this section, the staff reviewed the applicants' submittal to determine the acceptability of the FENOC corporate-level management and technical support organization. The review included an examination of each of the following criteria. For clarity, the evaluation follows the appropriate criteria listed in bold.

8.2.1. The organizational groups responsible for implementation of technical ,

support for operation of the fac!!ity are identified and described.

In the application. DLC and FENOC stated that substantially all of DLC's nuclear organization and substantially all of DLC's nuclear employees at BVPS-1 and 2 will becorne FENOC employees. The submittal further states that the existing DLC technical support organizations, as described in the UFSAR, that are not currently assigned to the site will become part of FENOC, will continue to perform these functions on behalf of FENOC, or will transfer their functions to FENOC employees or contractors meeting the UFSAR technical support requirements for these functions.

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The existing requirements in the BVPS-1 and 2 TSs and UFSARs are unchanged by this license transfer and conforming amendments. The existing requirements pertaining to shift staffing and personnel qualifications will continue to apply directly to the operations of BVPS-1

'and 2 after the transfer of ownership and operating licenses. The groups responsible for )

implementing the necessary technical support for operation of BVPS-1 and 2 are identified and described. The staff concludes that technical support for operation of BVPS-1 and 2 is appropriately identified and described and is, therefore, acceptable.

8.2.2. The methods for implementing the technical support and operation of BVPS-1 and 2 are described.

I In the application, DLC and FENOC stated that the technical qualifications of relevant FENOC personnel and the functions, responsibilities, and reporting relationships of these personnel will continue to meet the technical support requirements of the UFSAR. The proposed transfer has been planned to ensure that the pedormance of these personnelis unaffected by the transfer and there is no disruption to the operation of BVPS 1 and 2. )

The existing requirements in the BVPS-1 and 2 TSs and UFSARs are unchanged by the license transfers and conforming amendments. 5 existing requirements pertaining to shift staffing and personnel qualifications will continuc 9 c, ply directly to the operations of BVPS-1 and 2 after the transfer of ownership and operating licenses. The methods for implementing the technical support for operation of BVPS-1 and 2 are identified and described. The staff concludes that the methodology for implemer$ing the technical support and operation M BVPS-1 and 2 is appropriately described and is, i.wrafore, acceptable.

8.2.3. The organizational structure provides for the integrated management of activities that support the operation and maintenance of BVPS-1 and 2.  ;

in the application, DLC and FENOC stated that ;he utsting BVPS-1 and 2 organization will be substantially preserved intact; the only immediate change will involve the position of a senior 4 nuclear executive at BVPS-1 and 2 (FENOC Vice President - BVPS) which will be held by a FENOC employee. The FENOC Vice President - BVPS will continue to be the senior executive responsible for the overall safe op6 tion and maintenance of BVPS-1 and 2.

Requirements for the cni.ile and offsite organizations are contained in Section 6,

" Administrative Contro:s," of the BVPS-1 and BVPS-2 TSs. The organizational structure for BVPS-1 and 2 is described in Chapter 13, " Conduct of Operations," and Chapter 17, " Quality Assurance," of the BVPS-2 UFSAR. Under 10 CFR 50.54, any changes to the quality assurance program description that reduce the commitments must be submitted to the NRC and must receive NRC approval before implementation. No changes to the organizational structure were proposed in the application, or in any other separate application. Therefore, the existing requirements in the BVPS-1 and 2 TSs and UFSARs are unchanged by the license transfers and conforming amendments and shall continue to apply directly to the operation of BVPS-1 and 2 after the transfer of ownership and operating licenses. On the basis of this information, the staff concludes that the organizational structure as currently described in the BVPS-2 UFSAR which provides for the integrated management of activities, will continue to provide for the integrated management of activities, given the absence of any proposed changes.

8.2.4. Clear management control and effective lines of authority and communications exist between the organizational units involved in the management, operations, and technical support for operation of BVPS-1 and 2.

In the application, DLC and FENOC organization charts were submitted that depict the relationships of the corporate structure. The application and the organization chart described the management and communications pathways that will exist at the FENOC corporate level between FENOC and the BVPS-1 and 2 plantc. The Vice President-BVPS will be elected and appointed to his position by the FENOC Board of Directors. The Vice President - BVPS will report to the FENOC President, who will report to the FENOC Board of Directors.

The reporting and communication chain from BVPS-1 and 2 through the Vice President - BVPS to the FENOC President allows BVPS 1 and 2 access to additional FENOC and FE resources that may be needed to support plant operation.

On the basis of this information, the staff concludes that clear management control and effective lines of authority and communications will exist between the organizational units of FENOC and BVPS-1 and 2.

8.2.5. Substantive breadth and level of experience and availability of personnel exist to implement the responsibility for technica! support for operation of BVPS-1 and 2.  ;

The two most senior FENOC persons, who are to be assigned responsibilities for BVPS-1 and 2, exhibit sufficient experience and nuclear knowledge to implement their individual responsibilities for technical support for the operation of BVPS-1 and 2. Both individuals have '

more than 20 years' experience in the management, operations, and maintenance of commercial nuclear power facilities.' Additionally, they meet the required qualificatiorJ. of Regulatory Guide 1.8 and ANSI-N18.1-1971," Selection and Training of Nuclear Power Plant Personnel."

On the basis of this information, the staff concludes that the level of experience of corporate l personnel responsible for BVPS-1 and 2 is acceptable.

8.2.6. The corporate-level management and technical support structure should be free of ambiguous assignments of primary responsibility. A corporate officer should clearly be responsible for nuclear activities, witnout having ancillary responsibilities that might detract from attention to nuclear safety matters. i in the application, DLC and FENOC stated that the Vice President - BVPS will be the senior '

nuclear executive responsible for implementing all activities associated with the overall safe and reliable operation of BVPS-1 and 2. This individual will be clearly responsible for nuclear activities, will not have non-nuclear ancillary responsibilities, and will be free of ambiguous assignments of primary responsibility.

On the basis of the fact that the Vice President - BVPS will be the senior nuclear executive ,

responsible for the safe operation of BVPS-1 and 2, the NRC staff concludes that corporate-level management will not De distracted from paying attention to nuclear safety matters.

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8.3 Operating Organization Since the entire BVPS-1 and 2 organization will remain substantially intact, according to the application, it will continue to provide the same level of activities through the existing lines of authority and communication. On the basis of the commitment of FENOC to maintain the-personnel qualification level and the direct transfer of the existing requirements in the BVPS-1 and 2_TSs and UFSARs, the NRC staff concludes that the proposed BVPS-1 & 2 organization is acceptable and meets the criteria described in SRP Section 13.1 2-13.1.3, " Operating Organization."

8.4 The Staff's Conclusions On Technical Qualifications FENOC has described its organization and personnel qualifications for the management of and the means for providing technical support to the plant staff for operation of BVPS-1 and 2 after the license transfers. The staff has reviewed the management and the technical support organization and has concluded that FENOC has an acceptable organization and adequate resources to provide technical support for the operation of BVPS-1 and 2 under both normal and off-normal conditions.

The application adequately addresses the relevant requirements of 10 CFR 50.40(b), and the findings of the staff contribute to the judgment that FENOC is technically qualified to operate BVPS-1 and BVPS-2 and that FENOC has the necessary managerial and technical resources -

to provide assistance to BVPS-1 and 2. The staff, therefore, concludes that FENOC meets the ]

relevant criteria, and, therefore, has an acceptable management and technical support j organization to provide adequate technical support for the operation of the facility. l 9.0 CONFORMING AMENDMENTS 9.1 Introduction j

As stated previously, the application requested approval of proposed conforming amendments l to the BVPS-1 and 2 Facility OLs, DPR-66 and NPF 73. The requested changes replace references to DLC in the license with references to Penn Power or FENOC, as appropriate, to reflect th( proposed change in ownership and license transfers. Supplementalinformation received after the initial Federal Register notice of the application did not affect the applicats'"ty of the Commission's generic no significant hazards consideration determination set forth in 10 CFR 2.1315.

9.2 Discussion The changes to be made to the license are indicated in Enclosures 2 and 3. These changes do no more than accurately reflect the approval of the transfer actions, which approvalis subject to the conditions set forth in the Order approving the transfers. The amendments involve no safsty questions and are administrative in nature. Accordingly, the proposed amendments cre acceptable. l 4

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i 9.3 State Consultation in accordance with the Commission's regulations, the Pennsylvania State official was notified of j the proposed issuance of the amendments. The State official had no comments. 1 9.4 Conclusion With Respect to the Conforming Amenornent j The Commission has concluded on the basis'of the considerations previously discussed, that l

(1) there is reasonable assurance that the health and safety of the public will not be j endangered by operation in the oroposed manner, (2) such activities will be conducted in  !

compliance with the Commission's regulations, and (3) the issuance of the amendments will not I be inimical to the common defense and security or to the health and safety of the public.

10.0 COMMENTS RECEIVED On July 23,1999, the Commission issued a Memorandum and Order (CLI-99-23) that, among other actions, directed the staff to consider comments from Local 29, international Brotherhood of Electrical Workers (Local 29),in its ovaluvion of the BVPS-1 and 2 license transfer )

application. l l

Local 29 had requested intervention, which the Commission denied in CLI-99-23. Local 29 expressed the following concerns about the application in a letter dated June 3,1999:

a. In the application, FENOC did not indicate how it will determine staff levels for BVPS-1 and 2, how many current DLC employees at BVPS-1 and 2 will continue to be employed i at the station as FENOC employees, or whether the number of employees and experience levels of those employees will be sufficient to ensure the safe operation of BVPS-1 and 2.

b. The application does not provide any specific details regarding whether or how the operation of BVPS-1 & 2 will change after the transfer of ownership and operating license, and what impact that transfer will have on the safe operation of BVPS-1 and 2.

On September,24,1999, the Commission issued another Memorandum and Order (CLl-99-25) that, among other actions, directed the NRC staff to consider comments from a second petition from Local 29, dated September 15,1999, in the staff's evaluation of the BVPS-1 and 2 license transfer application.

In the second petition, Local 29 expressed its concerns that a FENOC proposal to reduce staffing cf union positions will result in unsafe operation of BVPS-1 and BVPS-2 (FENOC has proposed eliminating the jobs of 134 members of Local 29; Local 29 identified 104 of the positions that it believes are directly related to the safe operation of the plants).

As a general matter, business decisions regarding plant staffing, beyond the shift operating crew, personnel qualification, and organizational structure requirements which are specified in the TSs and UFSARs, are not specifically subject to the NRC's regulatory regime. Rather, the Commission's regulations and licenses specify opera' ion, maintenance, and inspection requirements for equipment important to safety which licensees are required to satisfy in order to ensure safe operation of the plant and ensure the health and safety of the public. It is the licensee's responsibility to provide sufficient resources to ensure that these requirements are

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10 met. The license.s impose rostrictions on plant operations when these requirements are not met. Additionally, the NRC oversees licensees' activities through its inspection programs to  !

ensure that all NRC requirements are being satisfied. The existing requirements in the BVPS-1 l and 2 TSs and UFSARs will be unchanged in connection with the proposed license transfers and conforming amendments. These include requirements pertaining to shift operating crews, personnel qualification, organizational structure, as well as the operation and maintenance of j equipment important to safety. As with any license, FENOC will be required to meet all NRC l requirements with respect to ensuring safe operation of the facility, and will be subject to any appropriate NRC remedies in this regard. FENOC is currently the licensed operator for both the Perry and Davis-Besse nuclear power plants and has adequately demonstrated its ability to safely manage, operate, and maintain nuclear power plants. Moreover, the NRC will be engaged in ongoing and routine inspection activities at Beaver Valley to ensure that BVPS 1 and 2 continue to be operated and maintained safely in accordance with the existing license requirements,

,11.0 ENVIRONMENTAL C_QNSIDERATION l

J' The subject application is for approval of a transfer of licenses issued by the NRC and approval of conforming amendments. Accordingly, the action involved meets the eligibility criteria for i categorical exclusion set forth in 10 CFR 51.22(c)(21). Pursuant to 10 CFR 51.22(b), no ,

environmentalimpact statement or environmental assessment need be prepared in connection I with approval of the application.

12.0 CONCLUSION

in view of the foregoing discussion, the NRC staff concludes that Penn Power is funcially qualified to acquire DLC's ownership interests and FENOC is technically qualified to operate BVPS-1 and 2. Also, the staff concludes there are no problematic ant! trust or foreign ownership considerations that arise from the proposed transfers. Thus, the NRC staff concludes that Penn Power and FENOC are qualified to hold the BVPS-1 and BVPS-2 licen::es to the extent proposed in the application, and that the transfer of the licenses is otherwise consistent with the applicable provisions of law, regulations, and orders by the Comrnission pursuant thereto, subject to the conditions stated in this safety evaluation.

Principal Contributors: M. Dusaniwskyj R. Pelton  !

D. Collins  !

l Date: September 30, 1999 '

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,- 2 DATE: September 30, 1999

' LETTER TO J. CROSS, DUQUESNE LIGHT COMPANY, FROM D. COLLINS, NRC, TRANSMITTING ORDER APPROVING TRANSFER OF LICENSES FOR BEAVER VALLEY POWER STATION, UNITS 1 AND 2 AND APPROVING CONFORMING AMENDMENTS (TAC NOS MA5370 AND MA5371) j DISTRIBUTION:

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@ Docket FAeWJ PUBLIC PDI-1 Rdg S. Collins /R. Zimmerman B. Sheron J. Zwolinski/S. Black M. Oprendek, RGN-l M. Tschiltz V. Dricks D. Collins C. Carpenter M. Dusaniwskyj R. Scholl (E mail SE)

OGC G. Hill (4)

ACRS SECY

. G. Grant, RGN-3 '

E. Adensam (e-mail)

S.Hom R. Gallo S. Bajwa M. O'Brien (2)

. September 30, 1999 J. Cross .

The Order has been forwarded to the Office of the Federal Register for publication.  ;

Sincerely, Original signed by:

Daniel S. Collins, Project Manager, Section 1 Project Directorate i Division of Licensing Project Management Office of Nuclear Reactor Regulation Docket Nos. 50-334 and 50-412

Enclosures:

1. Orde:

2. Conforming Amendment No. to DPR-66

3. Conforming Amendment No. to NPF-73

4. Safety Evaluation cc w/encis: See next page DISTRIBUTION: See next page *See previous concurrence To receive a copy of this document, indicate in the box: "C" = Copy without attachment / enclosure "E" = Copy with attachment / enclosure "N" = No copy OFFICE PDI 1(qp g l PDI-1/LA Ap TECH ED* l RGEB/BC l 10LB/BC l PDI-1/SC , al NAME DCollhM:ltc H0'Brien ll L'6/ I" BCalure CCarpenter SE dtd RGallo* / SBajwh/f7M DATE 09/ w /99 09 /4 { }99 08/27/99 07/22/99 O 09/28/99 [ 09/30/$ \

OFFICE PDl/D f ,

DLPR/D OGC NRR/jbh 7/ & /Md j NAME EAdensam " f JZwolinski 47)

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SHom#' BShe V f (Cd M DATE 09/t0 /99 09/ h) /99 09/ro /99 09GO/99 4 09/30 /99 j OFFICIAL RECORD COPY _

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