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June 11, 1987 Docket No. 50-498 MEMORANDUM FOR:   Charles E. Rossi, Director Division of Operational Events Assessment Lawrence Shao, Director Division of Engineering and Systems Technology James G. Partlow, Director Division of Reactor Inspection and Safeguards Frank J. Congel, Director Division of Radiation Protection and Emergency Preparedness Jack W. Roe, Director Division of Licensee Performance and Quality Evaluation FROM:             Jose A. Calvo, Director Project Directorate - IV Division of Reactor Projects - III, IV, V and Special Projects
June 11, 1987 Docket No. 50-498 MEMORANDUM FOR:
Charles E. Rossi, Director Division of Operational Events Assessment Lawrence Shao, Director Division of Engineering and Systems Technology James G. Partlow, Director Division of Reactor Inspection and Safeguards Frank J. Congel, Director Division of Radiation Protection and Emergency Preparedness Jack W. Roe, Director Division of Licensee Performance and Quality Evaluation FROM:
Jose A. Calvo, Director Project Directorate - IV Division of Reactor Projects - III, IV, V and Special Projects


==SUBJECT:==
==SUBJECT:==
REVIEW 0F DRAFT LICENSE FOR LOW POWER OPERATION ON SOUTH TEXAS PROJECT UNIT 1 Enclosed is the subject draft license which is being transmitted for your review and comment. This draft copy does not contain the Technical Specifi-cations, the Environmental Protection Plan and the Indemnity Agreements.
REVIEW 0F DRAFT LICENSE FOR LOW POWER OPERATION ON SOUTH TEXAS PROJECT UNIT 1 Enclosed is the subject draft license which is being transmitted for your review and comment. This draft copy does not contain the Technical Specifi-cations, the Environmental Protection Plan and the Indemnity Agreements.
The license conditions and exemptions have been identified subject to finali-zation of the Environmental Assessment and the Safety Evaluation Report.
The license conditions and exemptions have been identified subject to finali-zation of the Environmental Assessment and the Safety Evaluation Report. shows items which are currently being addressed; resolution on most of them is expected at the time of issuance.
Attachment 1 shows items which are currently being addressed; resolution on most of them is expected at the time of issuance.
Please provide your comments by June 19, 1987 so that the staff can be ready to issue the license in the last week of June if the applicant completes con-struction on schedule.
Please provide your comments by June 19, 1987 so that the staff can be ready to issue the license in the last week of June if the applicant completes con-struction on schedule.
Odginalsi                           l p*id Jose A. Calvo, Director 8706160279 870611                   Project Directorate - IV PDR     ADOCK 05000498             Division of Reactor Projects - III, IV A                 PDR     .          V and Special Projects i
Odginalsi p*id l
Jose A. Calvo, Director 8706160279 870611 Project Directorate - IV PDR ADOCK 05000498 Division of Reactor Projects - III, IV A
PDR V and Special Projects i
CONTACT:
CONTACT:
N. P. Kadambi, NRR/PD-IV 49-29407 DISTRIBUTION Dochetfile       NRC PDR Local PDR       PD4 Reading DCrutchfield     NPKadambi RPerch           PNoopan
N. P. Kadambi, NRR/PD-IV 49-29407 DISTRIBUTION Dochetfile NRC PDR Local PDR PD4 Reading DCrutchfield NPKadambi RPerch PNoopan
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;    , }#         %.                                                                      U'llTED STATES 1              o                            NVCLEAR REGULATORY COMMISSION
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U'llTED STATES NVCLEAR REGULATORY COMMISSION 1
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: WASHINGTON, D. C. 20685 '
: WASHINGTON, D. C. 20685 '
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                                                          !!OUSTON LIGHTING AND POWER COMPANY l
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CITY PUBLIC SERVICE BOARD OF SAN ANTONIO
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'                                                                      CENTRAL POWER AND LIGHT COMPANY CITY OF' AUSTIN, TEXAS '
!!OUSTON LIGHTING AND POWER COMPANY l
CITY PUBLIC SERVICE BOARD OF SAN ANTONIO CENTRAL POWER AND LIGHT COMPANY CITY OF' AUSTIN, TEXAS '
DOCKET NO.'50-498 SOUTH TEXAS PROJECT, UNIT 1 FACILITY OPERATING LICENSE License No. NPF-71' i
DOCKET NO.'50-498 SOUTH TEXAS PROJECT, UNIT 1 FACILITY OPERATING LICENSE License No. NPF-71' i
+
The Nuclear Regulatory Comission (the Comission or the NRC) has found 1.
: 1.      The Nuclear Regulatory Comission (the Comission or the NRC) has found that:-
+
.                      A. The application for a license filed by Houston Lighting and Power
that:-
                            . Company * (HL&P) acting on behalf of itself and as agent for the City Public Service Board of San Antonio (CPS), Central Power and Light Company (CPL), and City of Austin, Texas (COA) (licensees)                                                                                                             -
The application for a license filed by Houston Lighting and Power A.
complies with the standards and requirements of the Atomic Energy.
. Company * (HL&P) acting on behalf of itself and as agent for the City Public Service Board of San Antonio (CPS), Central Power and Light Company (CPL), and City of Austin, Texas (COA) (licensees) complies with the standards and requirements of the Atomic Energy.
                            - Act of-1954, as amended (the Act), and the comission's regulations set forth in 10 CFR Chapter I, and all required notifications to F
- Act of-1954, as amended (the Act), and the comission's regulations set forth in 10 CFR Chapter I, and all required notifications to F
!                            other agencies or bodies have been duly made; I
other agencies or bodies have been duly made; I
B. Construction of the South Texas Project, Unit 1, (the facility) has been substantially completed in conformity with Construction Permit No. CPPR-128 and the application, as amended, the provisions of the Act, and the regulations of the Comission;                                                                                                                             .
Construction of the South Texas Project, Unit 1, (the facility) has B.
C. The facility will operate in conformity with the application, as amended, the provisions of the Act, and the regulations of the Com-mission, (except as exempted from compliance in Section 2.0. below);
been substantially completed in conformity with Construction Permit No. CPPR-128 and the application, as amended, the provisions of the Act, and the regulations of the Comission; The facility will operate in conformity with the application, as C.
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 Comission's regulations set forth in 10 CFR Chapter I (except as exempted from compliance in Section 2.D. below);
amended, the provisions of the Act, and the regulations of the Com-mission, (except as exempted from compliance in Section 2.0. below);
                '' Houston Lighting and Power Company is authorized to act as agent for the City Public Service Board of San Antonio, Central Power and Light Company and City of. Austin, Texas and has exclusive responsibility-and control over the                                                                                                                   t physical construction, operation and maintenance of the facility.
There is reasonable assurance:
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(i) that the activities authorized D.
                                                        . . . - . . . , _ , - . _ , ,              ,.e-... - - . - , .-.%-em   , - -w . m m , m , , ,w m3     ,-------w,m,,mw,m-,--_----mmm,m p m-w
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 Comission's regulations set forth in 10 CFR Chapter I (except as exempted from compliance in Section 2.D. below);
'' Houston Lighting and Power Company is authorized to act as agent for the City Public Service Board of San Antonio, Central Power and Light Company and City of. Austin, Texas and has exclusive responsibility-and control over the t
physical construction, operation and maintenance of the facility.
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I,                                                                                                                     -
I, 2-E.
2-E. Houston Lighting and Power Company is technically qualified to engage
Houston Lighting and Power Company 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.
;                                            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
The licensees have satisfied the applicable provisions of 10 CFR Part 140, " Financial Protection Requirements and Indemnity Agreements," of the Commission's regulations; G.
,-                                            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
The issuance of this license will not be inimical to the common
                                            . defense and security or to the health and safety of the public; i                                     H. After weighing the environmental, economic, technical and other benefits of the facility against environmental and other costs and
. defense and security or to the health and safety of the public; i
,                                            considering available alternatives, the issuance of this Facility Operating License No. NPF-71, is subject to the conditions for pro-tection of the environment set forth in the Environmental Protec-tion Plan attached as Appendix B, is in accordance with 10 CFR                                                                                       r
H.
'                                            Part 51 of the Commission's regulations and all applicable require-i                                             ments have been satisfied; and I. The receipt, possession, and use of source, byproduct and special nuclear material as authorized by this license will be in accord-ance with the Commission's regulations in 10 CFR Parts 30, 40 and         '
After 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-71, is subject to the conditions for pro-tection of the environment set forth in the Environmental Protec-tion Plan attached as Appendix B, is in accordance with 10 CFR r
70.
Part 51 of the Commission's regulations and all applicable require-i ments have been satisfied; and I.
: 2. Based on the foregoing. findings and the Partial Initial Decision (Opera-ting License) (Phases II/III), dated June 13, 1986 and the Partial Initial e                                      Decision (Authorizing Operating Licenses), dated August 29, 1986 by the Atomic and Safety Licensing Board regarding this facility, Facility i_
The receipt, possession, and use of source, byproduct and special nuclear material as authorized by this license will be in accord-ance with the Commission's regulations in 10 CFR Parts 30, 40 and 70.
Operating License No. NFP-71, is hereby issued to Houston Lighting and Power Company, City Public Service Board of San- Antonio, Central Power and Light. Company, and City of Austin, Texas (the licensees) to read as                                                                   -
2.
follows:
Based on the foregoing. findings and the Partial Initial Decision (Opera-ting License) (Phases II/III), dated June 13, 1986 and the Partial Initial Decision (Authorizing Operating Licenses), dated August 29, 1986 by the e
A.. This license applies to the South Texas Project, Unit 1, a pres-surized water reactor, and associated equipment (the facility) owned by Housi.on Lighting and Power Company, City Public Service Board of San Antonio, Central Power and Light Company and City of Austin, Texas. The facility is located in Matagorda County, Texas, west of the Colorado River, 8 miles north-northwest of the town of Matagorda and about 89 miles southwest of Houston and is described in the licensees' Final Safety Analysis Report, as supplemented and amended, and in the licensee's Environmental Report, as supplemented and amended; I
Atomic and Safety Licensing Board regarding this facility, Facility i_
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Operating License No. NFP-71, is hereby issued to Houston Lighting and Power Company, City Public Service Board of San-Antonio, Central Power and Light. Company, and City of Austin, Texas (the licensees) to read as follows:
    , , = 2 -  --=...-,--,~.-.r.-.               .,----,,.-.-e-, #.w---~we,-,,,,,-.---,-,-~rr-w--.--,,-.%. , - - * .               . -w.-mem,-----------.s--,m----   - -  .y-     g .n ---*vw
A..
This license applies to the South Texas Project, Unit 1, a pres-surized water reactor, and associated equipment (the facility) owned by Housi.on Lighting and Power Company, City Public Service Board of San Antonio, Central Power and Light Company and City of Austin, Texas. The facility is located in Matagorda County, Texas, west of the Colorado River, 8 miles north-northwest of the town of Matagorda and about 89 miles southwest of Houston and is described in the licensees' Final Safety Analysis Report, as supplemented and amended, and in the licensee's Environmental Report, as supplemented and amended; I
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s Subjecttotheconditionsandrequirementsincorporatedherein,the
    $-                                                                                                            3
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B.
B.         Subjecttotheconditionsandrequirementsincorporatedherein,the Commission hereby licenses:                                                                                           .
Commission hereby licenses:
Houston Lighting and Power Corpany (HL&P) pursuant to,
(1)_
(1)_
Houston Lighting and Power Corpany (HL&P) pursuant to ,
Section 103 of the Act and 10 CFR Part 50, to possess, use/
Section 103 of the Act and 10 CFR Part 50, to possess, use/                                                 '
and operate the facility at the designated location in
and operate the facility at the designated location in
                                                      .Matagorda County, Texas, in accordance with the procedures                                                 1 and limitations. set forth in this license-
.Matagorda County, Texas, in accordance with the procedures 1
,                                        (2) Pursuant:to                           the Act and 10 CFR Part 50, the City Public Service Board of San Antonio (CPS), Central Power and Light Company (CPL),
and limitations. set forth in this license-Pursuant:to the Act and 10 CFR Part 50, the City Public Service (2)
Board of San Antonio (CPS), Central Power and Light Company (CPL),
and the City of Austin, Texas (COA), to possess the facility at the designated location in Matagorda. County, Texas, in accordance with the procedures and limitations set forth in this license;
and the City of Austin, Texas (COA), to possess the facility at the designated location in Matagorda. County, Texas, in accordance with the procedures and limitations set forth in this license;
                                                                                                    ~
~
(3) -and        HL&P,' pursuant to the Act and 10 CFR Part 70, to receive, possess use at any time special nuclear material as reactor fuel,
HL&P,' pursuant to the Act and 10 CFR Part 70, to receive, possess (3) -and use at any time special nuclear material as reactor fuel,
                                                        .in:accordance with the limitations for storage and ainounts required for reactor operation, as described in the Final-Safety' Analysis Report, as supplemented and amended;.
.in:accordance with the limitations for storage and ainounts required for reactor operation, as described in the Final-Safety' Analysis Report, as supplemented and amended;.
(4) HL&P, pursuant to the Act and 10 CFR Parts 30, 40'and 70, to receive, possess, and use at any time any byproduct, source
HL&P, pursuant to the Act and 10 CFR Parts 30, 40'and 70, to (4) receive, possess, and use at any time any byproduct, source and special nuclear material as sealed neutron sources for reactor startup, sealed sources for reactor instrumentation and; radiation monitoring equipment calibration, and as fission detectors in amounts as required; HL&P, pursuant to the Act and 10 CFR Parts 30, 40 and 70, to l
'                                                          and special nuclear material as sealed neutron sources for reactor startup, sealed sources for reactor instrumentation
(5) receive, possess, and use in amounts as' required any byproduct, L
'                                                          and; radiation monitoring equipment calibration, and as fission detectors in amounts as required; (5) HL&P, pursuant to the Act and 10 CFR Parts 30, 40 and 70, to l
source or special nuclear material without restriction to chemi-cal gr physical form, for sample analysis or instrument calibra-tionfor associated with radioactive apparatus or components; and to ?
receive, possess, and use in amounts as' required any byproduct, L                                                           source or special nuclear material without restriction to chemi-cal gr physical form, for sample analysis or instrument calibra-                                                               .
(6). HL&P, pursuant to the Act and 10 CFR Parts 30, 40 and 70, lear possess, but not separate,ysuch byproduct and special nuc E
tionfor associated with radioactive apparatus or components; and to ?
materials as may be produced by the operation of the' facility L
(6). HL&P, pursuant to the Act and 10 CFR Parts 30, 40 and 70, lear possess, but not separate,ysuch byproduct and special nuc E                                                             materials as may be produced by the operation of the' facility                               '
authorized'herein.
L authorized'herein.                                                                                                       ' '
This license shall be deemed to contain and is subject to the con-C.
C.        This license shall be deemed to contain and is subject to the con-ditions specified in the Commission's regulations set forth in 10 CFR Chapter I and is subject to all appitcable provisions of the Act and to the rules, regulations and orders of the Commission now or here-after in effect; and is subject to the additional conditions speci-fled or incorporated below:
ditions specified in the Commission's regulations set forth in 10 CFR Chapter I and is subject to all appitcable provisions of the Act and to the rules, regulations and orders of the Commission now or here-after in effect; and is subject to the additional conditions speci-fled or incorporated below:
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          -                                                  3 (1) Maximum Power Level-HL&P is authorized-to operate the' facility at-reactor core power levels not in excess of 3800 megawatts the mal (100% power) in accordance with the conditions specified herein' and in Attach-ment 1 to this license. The items: identified in Attachment 1 to this license shall be completed as specified. Attachment 1 e
is hereby incorporated into this license. Pending Commission approval, this license is: restricted to reactor core power levels not to exceed 5 percent of full power (190 megawatts thermal);
(2) Technical Specifications and Environmental Protection Plan The.Technica1' Specifications contained in Appendix A and the Environmental Protection Plan contained in Appendix B, both of which are' attached hereto, and hereby incorporated into this license. HL&P shall operate the facility in accordance with the Technical Specifications and.the Envircnmental Protection Plan.
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                        .(3) Antitrust Conditions Houston Lighting and Power Company, City Public Service Board of San Antonio, Central Power and Light Company and City of Austin, Texas shall comply with the antitrust conditions delineated in i
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                                . Appendix C to this license; fippendix C is hereby incorporated
- 3 (1) Maximum Power Level-HL&P is authorized-to operate the' facility at-reactor core power levels not in excess of 3800 megawatts the mal (100% power) in accordance with the conditions specified herein' and in Attach-ment 1 to this license. The items: identified in Attachment 1 to this license shall be completed as specified. Attachment 1 is hereby incorporated into this license. Pending Commission e
                                .into this license.
approval, this license is: restricted to reactor core power levels not to exceed 5 percent of full power (190 megawatts thermal);
(2) Technical Specifications and Environmental Protection Plan The.Technica1' Specifications contained in Appendix A and the Environmental Protection Plan contained in Appendix B, both of which are' attached hereto, and hereby incorporated into this license.
HL&P shall operate the facility in accordance with the Technical Specifications and.the Envircnmental Protection Plan.
.(3) Antitrust Conditions
~
Houston Lighting and Power Company, City Public Service Board of San Antonio, Central Power and Light Company and City of Austin, Texas shall comply with the antitrust conditions delineated in
. Appendix C to this license; fippendix C is hereby incorporated i
.into this license.
(4) Fire Protection (Section 9.5.1, SER, SSER Nos. 2, 3 and 4)*
(4) Fire Protection (Section 9.5.1, SER, SSER Nos. 2, 3 and 4)*
                                ~ HL&P shall implement and maintain in effect all provisions of the approved fire protection program as ' described in the Final             -
~ HL&P shall implement and maintain in effect all provisions of the approved fire protection program as ' described in the Final Safety Analysis Report, and the Fire Protection of Safe Shutdown Capability report for the facility, and submittals as o
Safety Analysis Report, and the Fire Protection of Safe o                                  Shutdown Capability report for the facility, and submittals as approved in the SER (NUREG-0781) dated April 1986 and its
approved in the SER (NUREG-0781) dated April 1986 and its Supplements, subject to the following provision:
''                                Supplements, subject to the following provision:
The licensee may make changes to the apprcved fire protection program without prior approval of the Consission, only if those changes would not adversely affect the ability to achieve and l
The licensee may make changes to the apprcved fire protection program without prior approval of the Consission, only if those l
I maintain safe shutdown in the event of a fire.
changes would not adversely affect the ability to achieve and I
"The parenthetical notation following the title of many license conditions denotes the section of the Safety Evaluation Report and/cr its supplements wherein the license condition is discussed.
maintain safe shutdown in the event of a fire.
              "The parenthetical notation following the title of many license conditions denotes the section of the Safety Evaluation Report and/cr its supplements wherein the license condition is discussed.
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                              '(5) Physical Security (Section 13.6, SSER No. 3)
'(5) Physical Security (Section 13.6, SSER No. 3)
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HL&P shall; fully implement and maintain in effect'all provisions of the physical security, guard training and qualification, and safeguards contingency plans previously approved by the Commission -
HL&P shall; fully implement and maintain in effect'all provisions of the physical security, guard training and qualification, and safeguards contingency plans previously approved by the Commission -
and all amendments and revisions to such plans r.ade pursuant to the authority of 10 CFR 50.90 and 10 CFR 10.54(p). The plans, which contain Safeguards Information protected under .10 CFR 73.71, are entitled: " South-Texas Project Electric Generating Station Physical Security Plan," with revisions submitted through March 20,1987; " South Texas Project Electric Generating Station Security Personnel Qualification and Training Plan,"
and all amendments and revisions to such plans r.ade pursuant to the authority of 10 CFR 50.90 and 10 CFR 10.54(p). The plans, which contain Safeguards Information protected under.10 CFR 73.71, are entitled: " South-Texas Project Electric Generating Station Physical Security Plan," with revisions submitted through March 20,1987; " South Texas Project Electric Generating Station Security Personnel Qualification and Training Plan,"
with revisions submitted through March 20, 1987; and " South Texas Project Electric Generating Station Safeguards Contingency Plan," with revisions submitted through March 29, 1985.
with revisions submitted through March 20, 1987; and " South Texas Project Electric Generating Station Safeguards Contingency Plan," with revisions submitted through March 29, 1985.
(6) SPDS License Conditions (Section 18. . SSER No. 4 HL&P shall accomplish the following prior to startup from the first refueling outage.:
(6) SPDS License Conditions (Section 18..
SSER No. 4 HL&P shall accomplish the following prior to startup from the first refueling outage.:
(a) Modify the critical safety function displays a) to provide the status of the radioactivity control safety function and b) to continuously display the status boxes that summarize plant safety status.
(a) Modify the critical safety function displays a) to provide the status of the radioactivity control safety function and b) to continuously display the status boxes that summarize plant safety status.
(b) Establish formal mechanisms for controlling system update rates.
(b) Establish formal mechanisms for controlling system update rates.
(c) Investigate and correct excessive display generation times - those greater than 10 seconds.
(c) Investigate and correct excessive display generation times - those greater than 10 seconds.
(d) Develop a program and implement procedures for controlling                     -
(d) Develop a program and implement procedures for controlling SPDS software and data base changes.
SPDS software and data base changes.
(e) Document the process used to verify that the SPDS system requirements are complete and that this process of veriff-cation is independent of the design process.
(e) Document the process used to verify that the SPDS system requirements are complete and that this process of veriff-cation is independent of the design process.
(7) Supplementary Containment Purge Isolation (Section 11.5 SSER No. 4)
(7) Supplementary Containment Purge Isolation (Section 11.5 SSER No. 4)
Line 140: Line 189:
ms1.
ms1.


j     .
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3                                                                                                                                                a D.               Exemptions.
. a 3
l                                      The following. exemptions are authorized by law and will not endanger life.
D.
or. property or the common defense and secarity, and certain special circumstances are present. With the granting of these exemptions, the facility will operate, to the extent authorized herein, in conformity                                       ,
Exemptions.
with.the application, as amended, the provisions of the Act, and the rules and regulations of the Commission.
The following. exemptions are authorized by law and will not endanger life.
t                                                                                                                                                   I 1
l or. property or the common defense and secarity, and certain special With the granting of these exemptions, the circumstances are present.
i:
facility will operate, to the extent authorized herein, in conformity with.the application, as amended, the provisions of the Act, and the rules and regulations of the Commission.
(1) The facility requires a schedular exemption from the requirements                               of general Design Criterion 4, Appendix A to 10 CFR 50. The staff has described in detail in Supplement 4 to the Safety Evaluation Report the technical basis associated with this exemption. The staff's-L environmental assessment was published on                                     .
I t
Therefore, pursuant to 10 CFR 50.12(a)(1),10 CFR 50.12(a)(2)(iii) and (iv), The South Texas Project Unit 1, is exempt from the require-ments of General Design Criterion (GDC) 4, Appendix A to 10 CFR 50
1 The facility requires a schedular exemption from the requirements of i:
'                                                        with respect to. the dynamic loading effects associated with the
(1)
#                                                        postulated pipe breaks described in detail in Section             3.6.3 ofloading These dynamic
The staff has general Design Criterion 4, Appendix A to 10 CFR 50.
                                                        -Supplement 4 to the Safety Evaluation Report.
described in detail in Supplement 4 to the Safety Evaluation Report the technical basis associated with this exemption. The staff's-L environmental assessment was published on Therefore, pursuant to 10 CFR 50.12(a)(1),10 CFR 50.12(a)(2)(iii) and (iv), The South Texas Project Unit 1, is exempt from the require-ments of General Design Criterion (GDC) 4, Appendix A to 10 CFR 50 with respect to. the dynamic loading effects associated with the postulated pipe breaks described in detail in Section 3.6.3 of 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                     -
-Supplement 4 to the Safety Evaluation Report.
with postulated pipe breaks in the pressurizer surge line, and the accumulator injection lines. This exemption will expire 6 months following completion of the current GDC-4 rulemaking changes or at the end of the second refueling outage, whichever occurs earlier.
effects include pipe whip, jet impingement, and break-associated Specifically, this eliminates the need to dynamic transients.
(2) The               facility requires a technical exemption from the requirements of 10 CFR 50, Appendix J, Section III.D.2(b)(ii). The justification of this exemption is contained in Section 6.2.6 of Supplement 3 to the Safety Evaluation Report.- The staff's environmental assessment was
install jet impingement barriers and pipe whip restraints associated with postulated pipe breaks in the pressurizer surge line, and the accumulator injection lines.
:                                                                                                  Therefore, pursuant to 10 CFR published on                         .                                                -
This exemption will expire 6 months following completion of the current GDC-4 rulemaking changes or at the end of the second refueling outage, whichever occurs earlier.
50.12(a)(1),10 CFR 50.12(a)(2)(li) and (iii), The South Texas Project Unit 1 is exempt from the quoted requirement and instead, is required to perform the overall air lock leak test at pressure P prior to-establishing containment integrity if air lock maintena$ce has been performed that could affect the air lock sealing capability.
The facility requires a technical exemption from the requirements of (2) 10 CFR 50, Appendix J, Section III.D.2(b)(ii). The justification of this exemption is contained in Section 6.2.6 of Supplement 3 to the Safety Evaluation Report.- The staff's environmental assessment was Therefore, pursuant to 10 CFR published on 50.12(a)(1),10 CFR 50.12(a)(2)(li) and (iii), The South Texas Project Unit 1 is exempt from the quoted requirement and instead, is required to perform the overall air lock leak test at pressure P prior to-establishing containment integrity if air lock maintena$ce has been performed that could affect the air lock sealing capability.
(3) The             facility requires a schedular exemption from the requirements of General Design Criterion 57, Appendix A to 10 CFR 50. The staff has described in detail in Supplement 4 to the Safety Evaluation Report the technical bases associated with this exemption. The staff's         Therefore, environmental assessment was published on                             .
The facility requires a schedular exemption from the requirements of (3)
pursuant to 10 CFR 50.12(a)(2)(v) the South Texas Project Unit 1 is exempt from the requirements of GDC-57 applicable to the essential component cooling water (CCW) piping which is also used by the non-essential chilled water system in providng cooling to the Reactor i
General Design Criterion 57, Appendix A to 10 CFR 50. The staff has described in detail in Supplement 4 to the Safety Evaluation Report the technical bases associated with this exemption. The staff's Therefore, environmental assessment was published on pursuant to 10 CFR 50.12(a)(2)(v) the South Texas Project Unit 1 is exempt from the requirements of GDC-57 applicable to the essential component cooling water (CCW) piping which is also used by the non-essential chilled water system in providng cooling to the Reactor containment Fan Coolers (RCFC). This exemption will expire at the i
containment Fan Coolers (RCFC). This exemption will expire at the end of the first refueling outage.
end of the first refueling outage.
e
e l
* l


l (4) The facility was previously granted exemption from the criticality monitoring requirements of 10 CFR 70.24 (See Materials License No.
l The facility was previously granted exemption from the criticality (4) monitoring requirements of 10 CFR 70.24 (See Materials License No.
SNM-1972 dated December 29, 1986 and Section 9.1.2 of SSER-3). The South Texas Project Unit 1 is hereby exempted from the criticality monitoring provisions of 10 CFR 70.24 as applied to fuel assemblies held under this license.
SNM-1972 dated December 29, 1986 and Section 9.1.2 of SSER-3). The South Texas Project Unit 1 is hereby exempted from the criticality monitoring provisions of 10 CFR 70.24 as applied to fuel assemblies held under this license.
E. Except as otherwise provided in the Technical Specifications or Environmental Protection Plan, the licensee shall report any vio-lations of the requirements contained in Section 2.C. of this. license in the following manner: initia1' notification shall be made within twenty-four (24) hours to the NRC Operations Center via the Emergency Notification System with written follow-up within 30 days in accord-ance with the procedures described in 10 CFR 50.73(b), (c), and (e).
Except as otherwise provided in the Technical Specifications or E.
4 F. The licensees-shall have and maintain financial 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.
Environmental Protection Plan, the licensee shall report any vio-lations of the requirements contained in Section 2.C. of this. license in the following manner:
G. This licensee is effective as of the date of issuance and shall expire at midnight on                       , 2027.
initia1' notification shall be made within twenty-four (24) hours to the NRC Operations Center via the Emergency Notification System with written follow-up within 30 days in accord-ance with the procedures described in 10 CFR 50.73(b), (c), and (e).
The licensees-shall have and maintain financial protection of such F.
type and in such amounts as the Commission shall require in accordance 4
with Section 170 of the Atomic Energy Act of 1954, as amended, to cover public liability claims.
G.
This licensee is effective as of the date of issuance and shall expire at midnight on
, 2027.
FOR THE NUCLEAR REGULATORY COMMISSION Thomas E. Murley, Director Office of Nuclear Reactor Regulation
FOR THE NUCLEAR REGULATORY COMMISSION Thomas E. Murley, Director Office of Nuclear Reactor Regulation


==Enclosures:==
==Enclosures:==
: 1. Attachment 1
: 1.
: 2. Appendix A - Technical Specifications (NUREG-1255)
2.
: 3. Appendix B, Environmental Protection Plan
Appendix A - Technical Specifications (NUREG-1255) 3.
: 4. Appendix C, Antritrust Conditions Date of Issuance:
Appendix B, Environmental Protection Plan 4.
Appendix C, Antritrust Conditions Date of Issuance:
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    .s                                                ATTACHMENT 1 TO OPERATING LICENSE NO. NPF-71 1
ATTACHMENT 1 TO OPERATING LICENSE NO. NPF-71
. s 1
Prior to criticality:
Prior to criticality:
: 1.     Justify to the staff's satisfaction the deviation from TMI Action Plan requirement II.E.4.2 as applied to .the Component Cooling Water lines which provide cooling to the Reactor Coolant Pumps, Reactcr Coolant Drain Tank Heat Exchanger, and Excess Letdown Heat Exchanger.
1.
<                      2.     . Incorporate into the FSAR .the commitments on design nodifications, and inspections to confirm adequacy thereof, related to the wear of Bottom-Mounted Instrumentation thimbles.
Justify to the staff's satisfaction the deviation from TMI Action Plan requirement II.E.4.2 as applied to.the Component Cooling Water lines which provide cooling to the Reactor Coolant Pumps, Reactcr Coolant Drain Tank Heat Exchanger, and Excess Letdown Heat Exchanger.
: 3.     -Complete all actions to the staff's satisfaction on the' items related to
2.
>                              the Seismic Qualifications Review Team audit documented in Section 3.10.1 of SWR Supplement No. 3.
. Incorporate into the FSAR.the commitments on design nodifications, and inspections to confirm adequacy thereof, related to the wear of Bottom-Mounted Instrumentation thimbles.
: 4.     Document compliance with 10 CFR 50.49.
3.
: 5. Demonstrate-adequacy of design with respect to attachment of safety-related components to non-safety-related frames.
-Complete all actions to the staff's satisfaction on the' items related to the Seismic Qualifications Review Team audit documented in Section 3.10.1 of SWR Supplement No. 3.
: 6. Justify deviations from Regulatory Guide 8.27.
4.
: 7.     Justify deviations from Regulatory Guide 1.68 with respect to the .
Document compliance with 10 CFR 50.49.
5.
Demonstrate-adequacy of design with respect to attachment of safety-related components to non-safety-related frames.
6.
Justify deviations from Regulatory Guide 8.27.
7.
Justify deviations from Regulatory Guide 1.68 with respect to the.
Loss-of-Offsite-Power Test.
Loss-of-Offsite-Power Test.
Prior- to Full Power Operation:
Prior-to Full Power Operation:
l                       1. Address to the staff's satisfaction the items resulting from the SPDS audit conducted by the staff during January 27-30, 1987 and documented in the meeting summary of March 12, 1987.
l 1.
The preoperational tests and testing exceptions identified in the attachment to                                                                         -
Address to the staff's satisfaction the items resulting from the SPDS l
the {{letter dated|date=May 26, 1987|text=May 26, 1987 letter}} from J. H. Goldberg to the USNRC Document Control Desk ~
audit conducted by the staff during January 27-30, 1987 and documented in the meeting summary of March 12, 1987.
shall be completed in accordance with the scheduled commitments contained in
The preoperational tests and testing exceptions identified in the attachment to the {{letter dated|date=May 26, 1987|text=May 26, 1987 letter}} from J. H. Goldberg to the USNRC Document Control Desk ~
  ,                      that attachment.
shall be completed in accordance with the scheduled commitments contained in that attachment.
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CONFORMED           '
CONFORMED 3-
3-                                                                                                                                                                                   - December 1980 4
- December 1980 LICENSE CONDITIONS FOR SOUTH TEXAS PROJECT 4
c                                                                    LICENSE CONDITIONS FOR SOUTH TEXAS PROJECT UNITS NOS 1 AND 2 7
c UNITS NOS 1 AND 2 7
3
3 The following definitions apply to paragraph I'.'B:
                                      -I.            A. The following definitions apply to paragraph I'.'B:
-I.
(1) "PowerApplicants" means severally and jointly Houston Lighting and Company (HLP),. Central Power and. Light Company (CPL),
A.
City Public Service Board of San Antonio (CPSB),.and the City                                                                   ~
jointly Houston Lighting and
of Austin' Electric Utility Department (COA) and any of their respective successors, assignees, or subsidiaries engaged in-the generation, transmission or the distribution of electric power.          Where a license condition is directed to a specific Applicant, that Applicant is ' identified.
" Applicants" means severally and (1)
(2) "cant's South Texas Area" means (a) those counties in which Appli-serve electric customers at wholesale or retail, and-(b) those other areas, if any, surrounded by the areas in (a) above.
Power Company (HLP),. Central Power and. Light Company (CPL),
(3) " Entity" means= an electric utility which is a person, a l                                                                   private or public corporation, a governmental agency or authority, a municipality, a cooperative, or an association of any of the foregoing owning, operating, or contractually controlling, or proposing in good-faith to own, operate, or contractually control facilities for generation, transmission or distribution of electric power and energy for the purpose of providing electric utility service.
City Public Service Board of San Antonio (CPSB),.and the City of Austin' Electric Utility Department (COA) and any of their
(4) " Bulk Power" means the electric power and/or electric energy 1
~
supplied or made available at transmission or subtransmission voltages.                                                                                                                           '
respective successors, assignees, or subsidiaries engaged in-the generation, transmission or the distribution of electric Where a license condition is directed to a specific power.
i                                                            (5) " Costs" means all appropriate operating and maintenance expenses and all ownership costs where applicable.
Applicant, that Applicant is ' identified.
" South Texas Area" means (a) those counties in which Appli-(2) cant's serve electric customers at wholesale or retail, and-(b) those other areas, if any, surrounded by the areas in (a) above.
(3) " Entity" means= an electric utility which is a person, a l
private or public corporation, a governmental agency or authority, a municipality, a cooperative, or an association of any of the foregoing owning, operating, or contractually controlling, or proposing in good-faith to own, operate, or contractually control facilities for generation, transmission or distribution of electric power and energy for the purpose of providing electric utility service.
(4) " Bulk Power" means the electric power and/or electric energy supplied or made available at transmission or subtransmission 1
voltages.
" Costs" means all appropriate operating and maintenance i
(5) expenses and all ownership costs where applicable.
(6) The terms " connection" and " interconnection" are used inter-changeably.
(6) The terms " connection" and " interconnection" are used inter-changeably.
B. The Applicants defined in Paragraph I. A.(1) are subject to the i
The Applicants defined in Paragraph I. A.(1) are subject to the B.
following antritrust conditions:
following antritrust conditions:
(1) (a) CPL                     shall afford to the Public Utilities Board of the City of Brownsville an opportunity to participate in the South Texas Projects, Units 1 and 2, on reasonable terms and conditions and in accordance with the South Texas Project Participation Agreement and on a basis that will l
i CPL shall afford to the Public Utilities Board of the (1) (a)
fully compensate CPL for its actual costs, provided that Appendix C - South Texas y ,
City of Brownsville an opportunity to participate in the South Texas Projects, Units 1 and 2, on reasonable terms and conditions and in accordance with the South Texas Project Participation Agreement and on a basis that will fully compensate CPL for its actual costs, provided that l
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Appendix C - South Texas y
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2-Brownsville must enter _into a firs commitment ~ to acquire the ownership interest made available to it by the terms-of this paragraph no later than ~Ja uary 1,1983. The ownership interest which CPL shall make available sto e
Brownsville must enter _into a firs commitment ~ to acquire the ownership interest made available to it by the terms-of this paragraph no later than ~Ja uary 1,1983.
'                                                                Brownsville shall be computed by cultiplying CPL's -
The ownership interest which CPL shall make available sto Brownsville shall be computed by cultiplying CPL's -
: Generation Entitlement Share in STP Units 1 and 2 by the ratio of Brownsville's peak demand for 1980 to CPL's peak demand for 1980. In the event Brownsville. obtains an ownership interest from any Applicant other than CPL, the ownership interest which CPL sast make available to Brownsville hereunder shall be reduced by one megawatt
e Generation Entitlement Share in STP Units 1 and 2 by the
"                                                                  for each megawatt in excess of 12 megawatts that Browns-ville acquires from other Applicants. Applicants shall not exercise any rights of first refusal over Brownsville's efforts to participate in the South Texas Project to the
: ratio of Brownsville's peak demand for 1980 to CPL's peak demand for 1980.
                                                                - extent of the first 50 MW of such ownership share.-
In the event Brownsville. obtains an ownership interest from any Applicant other than CPL, the ownership interest which CPL sast make available to Brownsville hereunder shall be reduced by one megawatt for each megawatt in excess of 12 megawatts that Browns-ville acquires from other Applicants.
;                                                          (b) CPL         shall afford Brownsville reasonable transmission services to enable it to obtain delivery of power from the STP,'provided that CPL is fully compensated for its costs of such transmission services plus a reasonable return on investment, and provided further that in the event transmission capacity is not available to provide such transmission services, the provisions of Paragraph I.B.(4) hereof define the extent of'the obligation which CPL has with respect to'the construction of additional transmission facilities necessary to provide such trans-mission service.
Applicants shall not exercise any rights of first refusal over Brownsville's efforts to participate in the South Texas Project to the
(c) CPL will also afford all reasonable coordination services (including but not limited to reserve-sharing, backup
- extent of the first 50 MW of such ownership share.-
'                                                                    power, maintenance power and emergency power) necessary for Brownsville to have effective access to power from     -
CPL shall afford Brownsville reasonable transmission (b) services to enable it to obtain delivery of power from the STP,'provided that CPL is fully compensated for its costs of such transmission services plus a reasonable return on investment, and provided further that in the event transmission capacity is not available to provide such transmission services, the provisions of Paragraph I.B.(4) hereof define the extent of'the obligation which CPL has with respect to'the construction of additional transmission facilities necessary to provide such trans-mission service.
STP obtained from CPL, provided that CPL is fully cca-pensated for its costs of providing such coordination services plus a reasonable return on investment.
(c) CPL will also afford all reasonable coordination services (including but not limited to reserve-sharing, backup power, maintenance power and emergency power) necessary for Brownsville to have effective access to power from STP obtained from CPL, provided that CPL is fully cca-pensated for its costs of providing such coordination services plus a reasonable return on investment.
[                                                          (d) Each         Applicant shall facilitate where necessary Browns-ville's obtaining the participation interests and services i
Each Applicant shall facilitate where necessary Browns-
[
(d) ville's obtaining the participation interests and services i
specified in paragraphs 1(a),1(b), and 1(c) above.
specified in paragraphs 1(a),1(b), and 1(c) above.
p                                                    (2) The       Applicants, as long as they are members of the Texas Interconnected Systems (TIS) or any other organization which considers the planning for or operations of ERCOT-TIS elec-tric utilities, shall support reasonable requests by Entities l
The Applicants, as long as they are members of the Texas (2)
4 in the South Texas Area having generation capacity for member-ship in TIS or such other organizations. The Applicants shall also propose and actively support, as long as they are i
Interconnected Systems (TIS) or any other organization which p
members thereof, the creation of one or more additional 4
considers the planning for or operations of ERCOT-TIS elec-tric utilities, shall support reasonable requests by Entities l
Appendix C - South Texas l
in the South Texas Area having generation capacity for member-ship in TIS or such other organizations. The Applicants 4
              -ew,u v,   er w n ,.m     nn, ,,,----w,,.-w-
shall also propose and actively support, as long as they are members thereof, the creation of one or more additional i
4 Appendix C - South Texas
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N 40                                                                                     .
N,.
40.
classification of TIS membership, based on non-discriminatory criteria to afford access to data, studies and recommendations
classification of TIS membership, based on non-discriminatory criteria to afford access to data, studies and recommendations
                                                      - to all Entities in the South . Texas Area who desire membership.
- to all Entities in the South. Texas Area who desire membership.
The Applicants shall share information with other Entities with respect to, and shall conduct with other such Entities i                                                      through any electric utility planning organizations of which         -'
The Applicants shall share information with other Entities with respect to, and shall conduct with other such Entities through any electric utility planning organizations of which i
the Applicants are members, joint studies and planning of
the Applicants are members, joint studies and planning of
: future generation, transmission and related facilities;
: future generation, transmission and related facilities;
                                                      .provided, however, that this condition shall not obligate the Applicants to conduct such joint studies or joint planning-unless (1) the studies or planning are requested and carried out in good faith and based on reasonably realistic and-reasonably complete data or projections, (2) the studies or planning are reasonably justified on the basis of sound engineering principles, (3) appropriate protection is accorded proprietary or other confidential business and financial information, and (4) the costs of such studies or planning are allocated on a fair and equitable basis.
.provided, however, that this condition shall not obligate the Applicants to conduct such joint studies or joint planning-unless (1) the studies or planning are requested and carried out in good faith and based on reasonably realistic and-reasonably complete data or projections, (2) the studies or planning are reasonably justified on the basis of sound engineering principles, (3) appropriate protection is accorded proprietary or other confidential business and financial information, and (4) the costs of such studies or planning are allocated on a fair and equitable basis.
(3) Each Applicant shall participate in and facilitate the exchange of bulk power by transmission over its own transmission facilities between or among two or more Entities in the South t
(3) Each Applicant shall participate in and facilitate the exchange of bulk power by transmission over its own transmission facilities between or among two or more Entities in the South Texas Area with which the Applicant is connected; and between t
E                                                        Texas Area with which the Applicant is connected; and between any such Entity (ies) and any Entity (ies) outside the South Texas-Area between whose facilities the Applicant's trans-
E any such Entity (ies) and any Entity (ies) outside the South Texas-Area between whose facilities the Applicant's trans-mission lines and other transmission lines, including direct current (asynchronous) transmission lines, form a continuous electrical path; provided, that (i) permission to utilize l=
'                                                      mission lines and other transmission lines, including direct current (asynchronous) transmission lines, form a continuous l=
such other transmission lines has been requested by the pro-I ponent of the arrangement, (ii) the arrangements reasonably l
electrical path; provided, that (i) permission to utilize I
can be accommodated from a functional and technical stand-point, and (iii) any Entity (ies) requesting such transmission l
such other transmission lines has been requested by the pro-ponent of the arrangement, (ii) the arrangements reasonably l
arrangements shall have 'given reasonable advance notice of
<                                                        can be accommodated from a functional and technical stand-l point, and (iii) any Entity (ies) requesting such transmission arrangements shall have 'given reasonable advance notice of     .
-its (their) schedule and requirements. Such transmission shall be on terms that fully compensate an Applicant for its costs including a reasonable return on investment; provided, however, that such transmission services and the rates to be charged therefor shall be subject to the jurisdiction of the appropriate regulatory agency (ies). Where the rates to be charged are subject to the jurisdiction of an appropriate regulatory authority, the Applicants shall not refuse to provide such transmission services merely because the rate (s) to be charged therefor are the subject of dispute with such Entity (ies).
                                                        -its (their) schedule and requirements. Such transmission shall be on terms that fully compensate an Applicant for its costs including a reasonable return on investment; provided, however, that such transmission services and the rates to be charged therefor shall be subject to the jurisdiction of the appropriate regulatory agency (ies). Where the rates to be charged are subject to the jurisdiction of an appropriate regulatory authority, the Applicants shall not refuse to provide such transmission services merely because the rate (s) to be charged therefor are the subject of dispute with such Entity (ies). An Applicant shall not be required to enter into any arrangement which would unreasonably impair system reliability or emergency transmission capacity, it being recognized that while some transmission may be operated fully loaded other transmission may be for emergency use and operated either unloaded or partially loaded.
An Applicant shall not be required to enter into any arrangement which would unreasonably impair system reliability or emergency transmission capacity, it being recognized that while some transmission may be operated fully loaded other transmission may be for emergency use and operated either unloaded or partially loaded.
Appendix C - South Texas 6
Appendix C - South Texas 6


                                                                                                              . 4-
. 4-
                                                        '(4) -Each Applicant shall include in its planning and construction programs sufficient transmission capacity as required for the transactions referred to in paragraph I.B.(3) (and I.B.(5)
'(4) -Each Applicant shall include in its planning and construction programs sufficient transmission capacity as required for the transactions referred to in paragraph I.B.(3) (and I.B.(5) for CPL), provided any Entity (ies) in the South Texas Area-gives an Applicant sufficient advance notice as may be neces-sary to accomodate its (their) requirements from a functional and technical standpoint and that such Entity (ies) fully.
-                                                                for CPL), provided any Entity (ies) in the South Texas Area-gives an Applicant sufficient advance notice as may be neces-                                                       ,
compensates an Applicant for its costs including a. reasonable return on investment.1/ An Applicant shall not be_ required i
sary to accomodate its (their) requirements from a functional and technical standpoint and that such Entity (ies) fully.
-to construct transmission facilities if construction of_ such facilities is infeasible, or if such would unreasonably l
compensates an Applicant for its costs including a. reasonable i
return on investment.1/ An Applicant shall not be_ required
                                                                -to construct transmission facilities if construction of_ such facilities is infeasible, or if such would unreasonably l
impair system reliability or emergency transactions capacity.
impair system reliability or emergency transactions capacity.
l
~In connection with the performance of the obligations above, l
                                                                ~In connection with the performance of the obligations above, an Applicant shall not be foreclosed from requiring a reason-l able contribution in aid of construction or from_ making arrangements for coordinated construction of future trans-mission lines such that each of the parties to the trans-action would own an interest in or a segment of the trans-mission addition in proportion to its share of the cost of the addition. Any such contribution made in aid of construc-tion or ownership interest shall also be properly credited in
an Applicant shall not be foreclosed from requiring a reason-able contribution in aid of construction or from_ making l
!                                                                determining any wheeling charges. If.an Applicant engages in joint ownership of transmission lines with any other Entity (ies),
arrangements for coordinated construction of future trans-mission lines such that each of the parties to the trans-action would own an interest in or a segment of the trans-mission addition in proportion to its share of the cost of the addition.
;                                                              .it shall not refuse to engage in similar transactions in
Any such contribution made in aid of construc-tion or ownership interest shall also be properly credited in determining any wheeling charges.
:                                                                comparable circumstances with other Entities, subject to the provisions limiting an Applicant's obligations above.
If.an Applicant engages in joint ownership of transmission lines with any other Entity (ies),
f                                                           (5) CPL shall, upon reasonable advance notice, enter into arrange-
.it shall not refuse to engage in similar transactions in comparable circumstances with other Entities, subject to the provisions limiting an Applicant's obligations above.
'                                                                ments for the sale of full and partial requirements bulk power pursuant to a filed tariff to any requesting Entity having a non-aggregated generating capacity of 200 megawatts or less under reasonable terms-and conditions which shall include a provision for CPL to recover its costs of providing                                               .
f (5) CPL shall, upon reasonable advance notice, enter into arrange-ments for the sale of full and partial requirements bulk power pursuant to a filed tariff to any requesting Entity having a non-aggregated generating capacity of 200 megawatts or less under reasonable terms-and conditions which shall include a provision for CPL to recover its costs of providing such service plus a reasonable return on investment.
such service plus a reasonable return on investment.                                               Such tariff shall not require CPL to enter into any arrangement for such sale (s) if (a) it does not have available sufficient bulk power or adequate transmission to provide the requested service; or (b) the sale would impair CPL's ability to render adequate
Such tariff shall not require CPL to enter into any arrangement for such sale (s) if (a) it does not have available sufficient bulk power or adequate transmission to provide the requested service; or (b) the sale would impair CPL's ability to render adequate
                                                                  .and reliable service to its own customers or its ability to l                                                                                                                     It is expressly recognized, and discharge prior commitments.
.and reliable service to its own customers or its ability to l
such tariff may reflect, that the determination whether suffi-cient bulk power or adequate transmission is available to accom-modate a request for full or partial requirements bulk power will consider and recognize that (1) CPL will be engaging in
discharge prior commitments.
                              -1/         Nothing in this paragraph shall require CPSB or C0A to undertake any action (s) which may be contrary to any state constitutional provision.
It is expressly recognized, and such tariff may reflect, that the determination whether suffi-cient bulk power or adequate transmission is available to accom-modate a request for full or partial requirements bulk power will consider and recognize that (1) CPL will be engaging in
-1/
Nothing in this paragraph shall require CPSB or C0A to undertake any action (s) which may be contrary to any state constitutional provision.
Appendix C - South Texas
Appendix C - South Texas
      ,  ----,-p--. .-,. wnw.,.-,   .,_,-,,,,,,-,--.m,----                     .,e-on ,n,--,,.v-n-,,,,w,,,_,,                         ,,-m.,.,-,,._,,,n-.,,,-,,,,w_,           ,,-
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centralized economic dispatch with its affiliates in accord-ance with, and pursuant to the requirements of, the Public Utility Holding Company Act of 1935, (2) pursuant to such-
centralized economic dispatch with its affiliates in accord-ance with, and pursuant to the requirements of, the Public Utility Holding Company Act of 1935, (2) pursuant to such-
                                  - requirements CPL may first utilize its generating and trans-mission capacity to accomplish such cer,tralized economic dispatch before its generating and trar.smission capacity is made available for full or partial requirements bulk power sales under the tariff, and (3) if other CSW system capacity becomes available by reason of CPL's padicipation in such centralized economic dispatch, then such other CSW system capacity will, at the option of CSW, be made available in lieu of CPL's obligation to provide such capacity. Any.
- requirements CPL may first utilize its generating and trans-mission capacity to accomplish such cer,tralized economic dispatch before its generating and trar.smission capacity is made available for full or partial requirements bulk power sales under the tariff, and (3) if other CSW system capacity becomes available by reason of CPL's padicipation in such centralized economic dispatch, then such other CSW system capacity will, at the option of CSW, be made available in lieu of CPL's obligation to provide such capacity. Any.
curtailment of CPL s full or partial requirements ~ sales shall be on a reasonable and non-discriminatory (where possible) basis..
curtailment of CPL s full or partial requirements ~ sales shall be on a reasonable and non-discriminatory (where possible) basis..
(6) (a) In connection with the performance of its obligations herein and subject to the provisions of this paragraph, HLP shall not disconnect from or refuse to connect its then-existing or proposed facilities with the facilities of any Entity used or proposed to be used for the trans-mission of electric energy in interstate commerce by reason of the interstate character of such facilities, and HLP will not prevent any Entity with which it main-tains connections from establishing, maintaining, modi-fying or utilizing a connection with facilities used or proposed to be used for the transsission of electric energy in interstate commerce by reason of the inter-state character of such facilities, provided that, anything in these license conditicas to the contrary
(6) (a) In connection with the performance of its obligations herein and subject to the provisions of this paragraph, HLP shall not disconnect from or refuse to connect its then-existing or proposed facilities with the facilities of any Entity used or proposed to be used for the trans-mission of electric energy in interstate commerce by reason of the interstate character of such facilities, and HLP will not prevent any Entity with which it main-tains connections from establishing, maintaining, modi-fying or utilizing a connection with facilities used or proposed to be used for the transsission of electric energy in interstate commerce by reason of the inter-state character of such facilities, provided that, anything in these license conditicas to the contrary notwithstanding (but subject to stbparagraph 6(b) and 6(d) below) any Entity seeking ~to establish, maintain, i
-                                          notwithstanding (but subject to stbparagraph 6(b) and 6(d) below) any Entity seeking ~to establish, maintain, i
modify or utilize any connection which could affect the nonjurisdictional status of HLP under the Federal Power
modify or utilize any connection which could affect the   -
(
nonjurisdictional status of HLP under the Federal Power
Act shall have filed an application with and used its L
(                                         Act shall have filed an application with and used its L                                         best efforts to obtain an order from the FERC, applicable
best efforts to obtain an order from the FERC, applicable
(
(
to HLP under Section 210, 211 and 212 of such Act, requiring tne establishment, maintenance, modification or utilization of such connection. In the event that an Entity files an application pursuant to this subparagraph, HPL agrees that it will not unreasonably oppose any such application. In the event such application is denied by a valid order of the FERC, any continuing refusal by HLP to estabish, maintain, modify or utilize such connection with such Entity shall be subject to review by the NRC in accordance with the Atomic Energy Act of 1954, as amended, and the rules and regulations thereunder, to determine whether any such refusal would create or maintain a situation inconsistent with the antitrust I
to HLP under Section 210, 211 and 212 of such Act, requiring tne establishment, maintenance, modification or utilization of such connection. In the event that an Entity files an application pursuant to this subparagraph, HPL agrees that it will not unreasonably oppose any such application.
In the event such application is denied by a valid order of the FERC, any continuing refusal by HLP to estabish, maintain, modify or utilize such connection with such Entity shall be subject to review by the NRC in accordance with the Atomic Energy Act of 1954, as amended, and the rules and regulations thereunder, to determine whether any such refusal would create or maintain a situation inconsistent with the antitrust I
Appendix C - South Texas
Appendix C - South Texas


w                   .
w laws or the policies thereunder in accordance with the standards set forth in Section 105 of such Act; provided i
laws or the policies thereunder in accordance with the standards set forth in Section 105 of such Act; provided                                                 i that all factual determinations by the FERC on any cost or system reliability reason (s) for any such refusal shall-not be~ subject to redetermination by the NRC. The burden of proof will be on the HLP in such NRC proceeding.
that all factual determinations by the FERC on any cost or system reliability reason (s) for any such refusal shall-not be~ subject to redetermination by the NRC.
r (b) HLP shall not enter into or maintain any agreement or understanding with any other Entity (ies) or Applicant to refuse to deal with another Entity (ies) or-Applicant (s) with the purpose of maintaining a non-jurisdictional status under-the Federal Power Act, and in the event
The burden of proof will be on the HLP in such NRC proceeding.
                                                                                            ' that HPL refuses to make an interconnection with or
(b) HLP shall not enter into or maintain any agreement or understanding with any other Entity (ies) or Applicant to r
                                                                                            - chooses to disconnect from any Entity (ies), such decision and/or action by HLP will be undertaken unilaterally, i
refuse to deal with another Entity (ies) or-Applicant (s) with the purpose of maintaining a non-jurisdictional status under-the Federal Power Act, and in the event
not jointly,-and without consultation with any other
' that HPL refuses to make an interconnection with or
'                                                                                              Entity (ies), provided, however, that after HLP decides to undertake such action, it may notify any affected Entity of its decision.
- chooses to disconnect from any Entity (ies), such decision and/or action by HLP will be undertaken unilaterally, i
(c) In the event that an Entity files an application pursuant
not jointly,-and without consultation with any other Entity (ies), provided, however, that after HLP decides to undertake such action, it may notify any affected Entity of its decision.
'                                                                                                to subparagraph (a) of this paragraph solely by reason of HLP's desire to maintain its non-jurisdictional status under the Federal Power Act, HLP agrees to pay such Entity's reasonable expenses in connection with such application'and the ensuring proceeding, 2/ provided, however, that HLP shall not be required to pay for any expenses of such Entity of that Entity's application is denied by FERC for reasons advocated by HLP at FERC, and
(c) In the event that an Entity files an application pursuant to subparagraph (a) of this paragraph solely by reason of HLP's desire to maintain its non-jurisdictional status under the Federal Power Act, HLP agrees to pay such Entity's reasonable expenses in connection with such application'and the ensuring proceeding, 2/ provided, however, that HLP shall not be required to pay for any expenses of such Entity of that Entity's application is denied by FERC for reasons advocated by HLP at FERC, and provided further, that HLP shall not be required to pay for any costs or expenses of such Entity which that Entity would have incurred had it not failed an applica-I ~
'                                                                                                provided further, that HLP shall not be required to pay for any costs or expenses of such Entity which that Entity would have incurred had it not failed an applica-tion solely by reason of HLP's desire to maintain its                                         ,
tion solely by reason of HLP's desire to maintain its non-jurisdictional status under the Federal Power Act.
I~
Nothing in these License Conditions shall impair the (d) right of the Department of Justice or any other Entity, i.
non-jurisdictional status under the Federal Power Act.
public or private, to file an antitrust action in any Federal Court in the event any Applicant refuses to establish, maintain, modify or utilize any connection with any Entity (ies), provided that nothing herein shall-preclude any Applicant from raising any legal or equitable defense that may be available to it.
(d) Nothing in these License Conditions shall impair the
This obligation shall not apply to the expenses of Central and South West 2/
: i.                                                                                                right of the Department of Justice or any other Entity, public or private, to file an antitrust action in any Federal Court in the event any Applicant refuses to establish, maintain, modify or utilize any connection with any Entity (ies), provided that nothing herein shall-preclude any Applicant from raising any legal or equitable defense that may be available to it.
Corporation or Texas Utilities Company or any of their respective sub-sidiaries, including but not limited to the expenses of CSW and any of its subsidiaries incurred in FERC Docket No. EL79-8.
2/          This obligation shall not apply to the expenses of Central and South West Corporation or Texas Utilities Company or any of their respective sub-sidiaries, including but not limited to the expenses of CSW and any of its subsidiaries incurred in FERC Docket No. EL79-8.
Appendix C - South Texas
!                                Appendix C - South Texas
~
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L4 7-(7) HLP agrees to use its best efforts to amend any_ agreements with all Entities to ensure that such agreements are not inconsistent with paragraphs (6)(a) and (6)(b) hereof.
L4 7-(7) HLP agrees to use its best efforts to amend any_ agreements with all Entities to ensure that such agreements are not inconsistent with paragraphs (6)(a) and (6)(b) hereof.
(8) If Applicants' participate in any future nuclear-units other than those which are now under construction or-for which an application forLa construction permit has been filed,-they will afford similar participation to Entities in the South Texas Area on a reasonable basis.
(8) If Applicants' participate in any future nuclear-units other than those which are now under construction or-for which an application forLa construction permit has been filed,-they will afford similar participation to Entities in the South Texas Area on a reasonable basis.
r (9)- Applicants agree that the reliability of power delivered -into
r (9)- Applicants agree that the reliability of power delivered -into TIS-ERCOT over DC asynchronous connections shall not be
'                                                  TIS-ERCOT over DC asynchronous connections shall not be
' treated differently by the Applicants, for purposes of spinning and installed reserve calculations and requirements, than would be the case if such power originated with TIS-ERCOT.
                                                  ' treated differently by the Applicants, for purposes of spinning                                                           '
and installed reserve calculations and requirements, than would be the case if such power originated with TIS-ERCOT.
Outages on DC asynchronous connections shall be treated by the Applicants in the same way as losses of generation within TIS-ERCOT. Applicants agree to support the' adoption of principles involving DC asynchronous connections contained in this paragraph within any TIS or ERCOST organization.
Outages on DC asynchronous connections shall be treated by the Applicants in the same way as losses of generation within TIS-ERCOT. Applicants agree to support the' adoption of principles involving DC asynchronous connections contained in this paragraph within any TIS or ERCOST organization.
(10) HLP and CPL shall use their best efforts to modify the Offer of Settlement filed in FERC Docket No. EL79-8 to include 4
(10) HLP and CPL shall use their best efforts to modify the Offer of Settlement filed in FERC Docket No. EL79-8 to include 4
'                                                  each of the undertakings set forth in the letter agreement
each of the undertakings set forth in the letter agreement among HLP, Central and South West Corporation, Texas Utilities Company and the FERC staff, dated September 11, 1980.
'                                                    among HLP, Central and South West Corporation, Texas Utilities Company and the FERC staff, dated September 11, 1980. HLP and CPL shall thereafter use their best efforts to secure approval thereof by the FERC, and shall abide by any valid order (s) of the FERC issued purusant to the Offer of Settle-ment. Nothing herein shall preclude the Department of Justice from instituting or intervening in any proceeding at FERC, including Docket No. EL79-8, and from presenting such argu-l                                                     ments and evidence that it deems appropriate.
HLP and CPL shall thereafter use their best efforts to secure approval thereof by the FERC, and shall abide by any valid order (s) of the FERC issued purusant to the Offer of Settle-ment. Nothing herein shall preclude the Department of Justice from instituting or intervening in any proceeding at FERC, including Docket No. EL79-8, and from presenting such argu-l ments and evidence that it deems appropriate.
i l
i l
(11) The foregoing conditions shall be implemented (1) in a manner l                                                    consistent with applicable Federal, state and local statutes j:
l (11) The foregoing conditions shall be implemented (1) in a manner consistent with applicable Federal, state and local statutes and regulations, and (2) subject to any regulatory agency j:
and regulations, and (2) subject to any regulatory agency i
having jurisdiction.
having jurisdiction. Nothing herein shall preclude the Applicants from seeking an exemption or other relief to which l
Nothing herein shall preclude the Applicants from seeking an exemption or other relief to which i
they may be entitled under applicable law or shall be construed j                                                     as a waiver of their right to contest the applicability of
l they may be entitled under applicable law or shall be construed j
:                                                    the license conditions with respect to any factual situation.
as a waiver of their right to contest the applicability of the license conditions with respect to any factual situation.
l Appendix C - South Texas                                                                                                                       '
l Appendix C - South Texas 1
1                                                                                                                                       -
.,----*-r
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, -...ww.y,m--3w-,,,,,yy--+


r June 11,1987
June 11,1987 r
* Docket No. 50-498 MEMORANDUM FOR:   Charles E. Rossi, Director Division of Operational Events Assessment Lawrence Shao, Director
Docket No. 50-498 MEMORANDUM FOR:
                                -Division of Engineering and Systems Technology James G. Partlow, Director Division of Reactor Inspection and Safeguards Frank J. Congel, Director Division of Radiation Protection and Emergency Preparedness Jack W. Roe, Director Division of Licensee Performance and Quality Evaluation FROM:             Jose A. Calvo, Director Project Directorate - IV Division of Reactor Projects - III, IV, V and Special Projects
Charles E. Rossi, Director Division of Operational Events Assessment Lawrence Shao, Director
-Division of Engineering and Systems Technology James G. Partlow, Director Division of Reactor Inspection and Safeguards Frank J. Congel, Director Division of Radiation Protection and Emergency Preparedness Jack W. Roe, Director Division of Licensee Performance and Quality Evaluation FROM:
Jose A. Calvo, Director Project Directorate - IV Division of Reactor Projects - III, IV, V and Special Projects


==SUBJECT:==
==SUBJECT:==
REVIEW OF DRAFT LICENSE FOR LOW POWER OPERATION ON SOUTH TEXAS PROJECT UNIT 1 Enclosed is the subject draft license which is being transmitted for your review and comment. This draft copy does not contain the Technical Specifi-cations, the Environmental Protection Plan and the Indemnity Agreements.
REVIEW OF DRAFT LICENSE FOR LOW POWER OPERATION ON SOUTH TEXAS PROJECT UNIT 1 Enclosed is the subject draft license which is being transmitted for your review and comment.
The license conditions and exemptions have been identified subject to finali-zation of the Environmental Assessment and the Safety Evaluation Report.
This draft copy does not contain the Technical Specifi-cations, the Environmental Protection Plan and the Indemnity Agreements.
Attachment 1 shows items which are currently being addressed; resolution on most of them is expected at the time of issuance.
The license conditions and exemptions have been identified subject to finali-zation of the Environmental Assessment and the Safety Evaluation Report. shows items which are currently being addressed; resolution on most of them is expected at the time of issuance.
                                                                                              ~
~
Please provide your comments by June 19, 1987 so that the staff can be ready to issue the license in the last week of June if the applicant completes con-struction on schedule.
Please provide your comments by June 19, 1987 so that the staff can be ready to issue the license in the last week of June if the applicant completes con-struction on schedule.
Odgtnet signedd             b     M4
Odgtnet signedd b
                                                                        -    c~
M4 c~
Jose A. Calvo, Director Project Directorate - IV Division of Reactor Projects - III, IV V and Special Projects CONTACT:
Jose A. Calvo, Director Project Directorate - IV Division of Reactor Projects - III, IV V and Special Projects CONTACT:
N. P. Kadambi, NRR/PD-IV 49-29407 DISTRIBUTION Docket File     NRC PDR
N. P. Kadambi, NRR/PD-IV 49-29407 DISTRIBUTION Docket File NRC PDR
* Local:PDR
* Local:PDR
* PD4 Reading DCrutchfield   NPKadambi RPerch PD4 Mlh'-
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UNITED STATES '
                                ,.                                                          NUCLEAR REGULATORY COMMISSION UNITED STATES '
;#y NUCLEAR REGULATORY COMMISSION WASHINGTON. D. C. 20056 y -{
WASHINGTON. D. C. 20056 y     -{                   ,.
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        \e...*                                                                                           HOUSTON LIGHTING AND POWER COMPANY CITY PUBLIC SERVICE BOARD OF SAN ANTONIO CENTRAL POWER AND LIGHT COMPANY CITY OF AUSTIN, TEXAS DOCKET NO. 50-498 SOUTH TEXAS PROJECT, UNIT 1
HOUSTON LIGHTING AND POWER COMPANY CITY PUBLIC SERVICE BOARD OF SAN ANTONIO CENTRAL POWER AND LIGHT COMPANY CITY OF AUSTIN, TEXAS DOCKET NO. 50-498 SOUTH TEXAS PROJECT, UNIT 1
                                                                                                                                                                                                                            ~
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FACILITY OPERATING LICENSE License No. NPF-71 ,
FACILITY OPERATING LICENSE License No. NPF-71 1.
: 1.           The Nuclear Regulatory Comission (the Comission or the NRC) has found that:
The Nuclear Regulatory Comission (the Comission or the NRC) has found that:
A. The application for a license filed by Houston Lighting and Power Company * (HL&P) acting on behalf of itself and as agent for the City Public Service Board of San Antonio (CPS), Central Power and Light Company (CPL), and City of Austin, Texas (C0A) (licensees) complies with the standards and requirements of the Atomic Energy Act of 1954, as amended (the Act), and the Comission's 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 South Texas Project, Unit 1, (the facility) has been substantially completed in conformity with Construction Permit No. CPPR-128 and the application, as amended, the provisions of the Act, and the regulations of the Commission;                                                                                                                                       ,
A.
C. The facility will operate in conformity with the application, as amended, the provisions of the Act, and the regulations of the Com-mission, (except as exempted from compliance in Section 2.0. below);
The application for a license filed by Houston Lighting and Power Company * (HL&P) acting on behalf of itself and as agent for the City Public Service Board of San Antonio (CPS), Central Power and Light Company (CPL), and City of Austin, Texas (C0A) (licensees) complies with the standards and requirements of the Atomic Energy Act of 1954, as amended (the Act), and the Comission's regulations set forth in 10 CFR Chapter I, and all required notifications to other agencies or bodies have been duly made; B.
D. There is reasonable assurance: (1) 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 Comission's regulations set forth in 10 CFR Chapter I (except as exempted from compliance in Section 2.D. below);
Construction of the South Texas Project, Unit 1, (the facility) has been substantially completed in conformity with Construction Permit No. CPPR-128 and the application, as amended, the provisions of the Act, and the regulations of the Commission; C.
                          '' Houston Lighting and Power Company is authorized to act as agent for the City Public Service Board of San Antonio, Central Power and Light Company and City of Austin, Texas and has exclusive responsibility and control over the physical-construction, operation and maintenance of the facility.
The facility will operate in conformity with the application, as amended, the provisions of the Act, and the regulations of the Com-mission, (except as exempted from compliance in Section 2.0. below);
D.
There is reasonable assurance:
(1) 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 Comission's regulations set forth in 10 CFR Chapter I (except as exempted from compliance in Section 2.D. below);
'' Houston Lighting and Power Company is authorized to act as agent for the City Public Service Board of San Antonio, Central Power and Light Company and City of Austin, Texas and has exclusive responsibility and control over the physical-construction, operation and maintenance of the facility.


              .              _ ._                      __                  ~ . -     . . _  _                    .. .
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    .:                                                                              '                                   E. Houston Lighting and Power. Company 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;
' 2-E.
.                                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. After 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-71, is subject to the conditions for pro-tection of the environment set forth in the Environmental Protec-tion Plan attached as Appendix B is in accordance with 10 CFR Part 51 of the Commission's regulations and all applicable require-ments have been satisfied; and I. The receipt, possession, and use of source, byproduct and special nuclear material as authorized by this license will be in accord-ance with the Commission's regulations in 10 CFR Parts 30, 40 and 70.
Houston Lighting and Power. Company 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.
: 2.       Based on the foregoing findings and the Partial Initial Decision (Opera-
The licensees have satisfied the applicable provisions of 10 CFR Part 140, " Financial Protection Requirements and Indemnity Agreements," of the Commission's regulations; G.
;                                  ting License) (Phases II/III), dated June 13, 1986 and the Partial Initial j'                                 Decision (Authorizing Operating Licenses), dated August 29, 1986 by the Atomic and Safety Licensing Board regarding this facility, Facility l-                                 Operating License No. NFP-71, is hereby issued to Houston Lighting and Power Company, City Public Service Board of San Antonio,. Central Power and Light Company, and City of Austin, Texas (the licensees) to read as
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.
;                                  follows:
After 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-71, is subject to the conditions for pro-tection of the environment set forth in the Environmental Protec-tion Plan attached as Appendix B is in accordance with 10 CFR Part 51 of the Commission's regulations and all applicable require-ments have been satisfied; and I.
A. This license applies to the South Texas Project, Unit 1, a pres-surized water reactor, and associated equipment (the facility) owned by Houston Lighting and Power Company, City Public Service Board of San Antonio, Central Power and Light Company and City of Austin,                       t
The receipt, possession, and use of source, byproduct and special nuclear material as authorized by this license will be in accord-ance with the Commission's regulations in 10 CFR Parts 30, 40 and 70.
'                                        Texas. The facility is located in Matagorda County, Texas, west of r
2.
the Colorado River, 8 miles north-northwest of the town of Matagorda l                                         and about 89 miles southwest of Houston and is described in the I
Based on the foregoing findings and the Partial Initial Decision (Opera-ting License) (Phases II/III), dated June 13, 1986 and the Partial Initial j'
licensees' Final Safety Analysis Report, as supplemented and amended, and in the licensee's Environmental Report, as supplemented and                       ;
Decision (Authorizing Operating Licenses), dated August 29, 1986 by the Atomic and Safety Licensing Board regarding this facility, Facility l-Operating License No. NFP-71, is hereby issued to Houston Lighting and Power Company, City Public Service Board of San Antonio,. Central Power and Light Company, and City of Austin, Texas (the licensees) to read as follows:
i                                        amended; l
A.
t i
This license applies to the South Texas Project, Unit 1, a pres-surized water reactor, and associated equipment (the facility) owned by Houston Lighting and Power Company, City Public Service Board of San Antonio, Central Power and Light Company and City of Austin, t
Texas. The facility is located in Matagorda County, Texas, west of the Colorado River, 8 miles north-northwest of the town of Matagorda r
l and about 89 miles southwest of Houston and is described in the I
licensees' Final Safety Analysis Report, as supplemented and amended, and in the licensee's Environmental Report, as supplemented and amended; i
l t
i


      . . . . . .          - .        --      .-    -      ..      .= . =-     -        . -  .
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i-               B. : Subject to the conditions and requirements incorporated herein, the I
i-B.
: Subject to the conditions and requirements incorporated herein, the I
Commission hereby licenses:
Commission hereby licenses:
:(1) Houston Lighting and Power Company (HL&P) pursuant to                           '
:(1) Houston Lighting and Power Company (HL&P) pursuant to Section 103 of the Act and 10 CFR Part 50, to possess, use and. operate the' facility at the designated location in Matagorda. County, Texas, in accordance with the procedures and limitations set forth in this license;
Section 103 of the Act and 10 CFR Part 50, to possess, use                 >
and. operate the' facility at the designated location in                   '
Matagorda. County, Texas, in accordance with the procedures and limitations set forth in this license;
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'                      (2) Pursuant to the Act-and 10 CFR Part 50, the City Public Service Board of San Antonio (CPS), Central Power and Light Company (CPL),
(2) Pursuant to the Act-and 10 CFR Part 50, the City Public Service Board of San Antonio (CPS), Central Power and Light Company (CPL),
'                              and the City of Austin, Texas (COA), to possess the facility at the designated location in Matagorda County, Texas, in accordance with the procedures and linlitations set forth in this license; (3) _HL&P, pursuant to the Act and 10 CFR Part 70, to receive, possess and use at any time special nuclear material as reactor fuel,
and the City of Austin, Texas (COA), to possess the facility at the designated location in Matagorda County, Texas, in accordance with the procedures and linlitations set forth in this license;
:                              in accordance with the limitations for storage and amounts required for reactor opera _ tion, as described in the Final
_HL&P, pursuant to the Act and 10 CFR Part 70, to receive, possess (3) and use at any time special nuclear material as reactor fuel, in accordance with the limitations for storage and amounts required for reactor opera _ tion, as described in the Final Safety Analysis Report, as supplemented and amended;
* Safety Analysis Report, as supplemented and amended;
-(4) HL&P, pursuant to the Act and 10 CFR Parts 30, 40 and 70, to receive, possess, and use at any time any byproduct, source and special nuclear material as sealed neutron sources for reactor startup, sealed sources for reactor instrumentation andl radiation monitoring equipment calibration, and as fission detectors in amounts as required; HL&P, pursuant to the Act and 10 CFR Parts 30, 40 and 70, to (5) receive, possess, and use in amounts as required any byproduct, source or special nuclear material without restriction to chemi-i cal or physical form, for sample analysis or instrument calibra-i l
                        -(4) HL&P, pursuant to the Act and 10 CFR Parts 30, 40 and 70, to receive, possess, and use at any time any byproduct, source
tion or associated with radioactive apparatus or components; and l
'                              and special nuclear material as sealed neutron sources for reactor startup, sealed sources for reactor instrumentation andl radiation monitoring equipment calibration, and as fission detectors in amounts as required;
(6) HL&P, pursuant to the Act and 10 CFR Parts 30, 40 and 70, to i:
!                        (5) HL&P, pursuant to the Act and 10 CFR Parts 30, 40 and 70, to
possess, but not separate, such byproduct and special nuclear l
''                              receive, possess, and use in amounts as required any byproduct, source or special nuclear material without restriction to chemi-i                                                                                                          i cal or physical form, for sample analysis or instrument calibra-l                               tion or associated with radioactive apparatus or components; and   .
materials as may be produced by the operation of the facility authorized herein.
l i:                      (6) HL&P, pursuant to the Act and 10 CFR Parts 30, 40 and 70, to possess, but not separate, such byproduct and special nuclear l
j-This license shall be deemed to contain and is subject to the con-C.
materials as may be produced by the operation of the facility j-authorized herein.
ditions specified in the Commission's regulations set forth in 10 CFR Chapter I and is subject to all applicable provisions of the Act and l
C. This license shall be deemed to contain and is subject to the con-ditions specified in the Commission's regulations set forth in 10 CFR Chapter I and is subject to all applicable provisions of the Act and l
to the rules, regulations and orders of the Commission now or here-after in effect; and is subject to the additional conditions speci-fled or incorporated below:
to the rules, regulations and orders of the Commission now or here-after in effect; and is subject to the additional conditions speci-               -
i i -
fled or incorporated below:
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c (1) Maximum Power Level HL&P is authorized to operate the facility at reactor core power levels not in excess of 3800 megawatts the7ial (100% power) in accordance with the conditions specified herein and in Attach-ment I to this license. The items identified in Attachment 1 to this license shall be. completed as specified. Attachment 1 is hereby incorporated into this license. Pending Commission approval, this. license is. restricted to reactor core power
.. c (1) Maximum Power Level HL&P is authorized to operate the facility at reactor core power levels not in excess of 3800 megawatts the7ial (100% power) in accordance with the conditions specified herein and in Attach-ment I to this license. The items identified in Attachment 1 to this license shall be. completed as specified. Attachment 1 is hereby incorporated into this license. Pending Commission approval, this. license is. restricted to reactor core power
                                                        ' levels not to exceed 5 percent of full power (190 megawatts thermal);
' levels not to exceed 5 percent of full power (190 megawatts thermal);
(2) Technical Specifications and Environmental Protection Plan The Technical Specifications contained in Appendix-A and the Environmental Protection Plan contained in Appendix B, both of which are attached hereto, and hereby incegorated into this license'. HL&P shall operate the facility in accordance with-the Technical Specifications and the Environmental Protection Plan.
(2) Technical Specifications and Environmental Protection Plan The Technical Specifications contained in Appendix-A and the Environmental Protection Plan contained in Appendix B, both of which are attached hereto, and hereby incegorated into this license'. HL&P shall operate the facility in accordance with-the Technical Specifications and the Environmental Protection Plan.
(3) Antitrust Conditions Houston Lighting and Power Company, City Public Service Board of San Antonio,. Central Power and-Light Company and City of Austin, Texas shall comply with the antitrust conditions delineated in Appendix C to this license; Appendix C is hereby -incorporated into this license.
(3) Antitrust Conditions Houston Lighting and Power Company, City Public Service Board of San Antonio,. Central Power and-Light Company and City of Austin, Texas shall comply with the antitrust conditions delineated in Appendix C to this license; Appendix C is hereby -incorporated into this license.
(4) Fire Protection (Section 9.5.1, SER, SSER Nos. 2, 3 and 4)*
(4) Fire Protection (Section 9.5.1, SER, SSER Nos. 2, 3 and 4)*
HL&P shall implement and maintain in effect all provisions of the approved fire protection program as described in the Final                   ~
HL&P shall implement and maintain in effect all provisions of the approved fire protection program as described in the Final
i Safety Analysis Report, and the Fire Protection of Safe l'
~
Shutdown Capability report for the facility, and submittals as l
Safety Analysis Report, and the Fire Protection of Safe i
approved in the SER (NUREG-0781) dated April 1986 and its Supplements, subject to the following provision:
Shutdown Capability report for the facility, and submittals as l'
approved in the SER (NUREG-0781) dated April 1986 and its l
Supplements, subject to the following provision:
l' The licensee may make changes to the apprcved 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.
l' The licensee may make changes to the apprcved 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.
                          "The parenthetical notation following the title of many license conditions denotes the section of the Safety Evaluation Report andAr its supplements wherein the license condition is discussed.
"The parenthetical notation following the title of many license conditions denotes the section of the Safety Evaluation Report andAr its supplements wherein the license condition is discussed.
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a; (5) Physical Security (Section 13.6 SSER No. 3)
a; (5) Physical Security (Section 13.6 SSER No. 3)
HL&P shall fully implement and maintain in effect all provisions of the physical security, guard training and qualification.cand safeguards contingency plans previously approved by the Commission and all amendments and revisions to such plans made pursuant to
HL&P shall fully implement and maintain in effect all provisions of the physical security, guard training and qualification.cand 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 10.54(p).. The plans, which contain Safeguards Information protected under 10 CFR 73.71, are entitled:
'                                                    the authority of 10 CFR 50.90 and 10 CFR 10.54(p). . The plans,
" South Texas Project Electric Generating Station Physical Security Plan," with revisions submitted through March 20, 1987; " South Texas Project Electric Generating Station Security Personnel Qualification and Training Plan,"
'                                                    which contain Safeguards Information protected under 10 CFR 73.71, are entitled: " South Texas Project Electric Generating
#                                                    Station Physical Security Plan," with revisions submitted through March 20, 1987; " South Texas Project Electric Generating Station Security Personnel Qualification and Training Plan,"
with revisions submitted through March 20, 1987; and " South Texas Project Electric Generating Station Safeguards Contingency Plan," with revisions submitted through March 29, 1985.
with revisions submitted through March 20, 1987; and " South Texas Project Electric Generating Station Safeguards Contingency Plan," with revisions submitted through March 29, 1985.
[                                               (6) SPDS License Conditions (Section 18. . SSER No. 4 j
[
HL&P shall accomplish the following prior to startup from the
(6) SPDS License Conditions (Section 18..
'                                                      first refueling outage.:
SSER No. 4 HL&P shall accomplish the following prior to startup from the j
(a) Modify the critical safety function displays a) to provide the status of the radioactivity control safety function and l-b) to continuously display the status boxes that summarize plant safety status.
first refueling outage.:
p (b) Establish formal mechanisms for controlling system update
(a) Modify the critical safety function displays a) to provide the status of the radioactivity control safety function and b) to continuously display the status boxes that summarize l-plant safety status.
                                                              -rates.
(b) Establish formal mechanisms for controlling system update p
-rates.
(c) Investigate and correct excessive display generation times - those greater than 10 seconds.
(c) Investigate and correct excessive display generation times - those greater than 10 seconds.
(d) Develop a program and implement procedures for controlling         .
(d) Develop a program and implement procedures for controlling SPDS software and data base changes.
SPDS software and data base changes.
(e) Document the process used to verify that the SPDS system requirements are complete and that this process of veriff-cation is independent of the design process.
(e) Document the process used to verify that the SPDS system requirements are complete and that this process of veriff-cation is independent of the design process.
(7) Supplementary Containment Purae Isolation (Section 11.5 SSER No. 4)
(7) Supplementary Containment Purae Isolation (Section 11.5 SSER No. 4)
HL&P shall provide, prior to startup from the first refueling l                                                       outage, control room indication of the normal and supplemental l
HL&P shall provide, prior to startup from the first refueling l
L containment purge sample line isolation valve position.
outage, control room indication of the normal and supplemental l
j                                                 (8) Main Cooling Reservoir (Section 2.5.7 SSER No. 2)
containment purge sample line isolation valve position.
L j
(8) Main Cooling Reservoir (Section 2.5.7 SSER No. 2)
HL&P shall complete remedial work on the reservoir embankment i
HL&P shall complete remedial work on the reservoir embankment i
before the water level is increased substantially over 35 ft.
before the water level is increased substantially over 35 ft.
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D.                 Exemptions l
D.
The following exemptions are authorized by law and will not endanger life                 j 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 provisions of the Act, and the rules and regulations of the Commission.
Exemptions The following exemptions are authorized by law and will not endanger life or property or the common defense and security, and certain special j
(1) The facility requires a schedular exemption from the requirements The staff hasof general Design Criterion 4, Appendix A to 10 CFR 50.
With the granting of these exemptions, the circumstances are present.
described in detail in Supplement 4 to the Safety Evaluation Report the technical basis associated with this exemption. The staff's environmental assessment was published on                         .
facility will operate, to the extent authorized herein, in conformity with the application, as amended, the provisions of the Act, and the rules and regulations of the Commission.
Therefore, pursuant to 10 CFR 50.12(a)(1), 10 CFR 50.12(a)(2)(111)             l and (iv), The South Texas Project Unit 1, is exempt from the require-           '
(1) The facility requires a schedular exemption from the requirements of The staff has general Design Criterion 4, Appendix A to 10 CFR 50.
ments of General Design Criterion (GDC) 4, Appendix A to 10 CFR 50 with respect to the dynamic loading effects associated with the postulated pipe breaks described in detail in Section 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 pressurizer surge line, and the accumulator injection lines. This exemption will expire 6 months following completion of the current GDC-4 rulemaking changes or at the end of the second refueling outage, whichever occurs earlier.
described in detail in Supplement 4 to the Safety Evaluation Report the technical basis associated with this exemption. The staff's environmental assessment was published on Therefore, pursuant to 10 CFR 50.12(a)(1), 10 CFR 50.12(a)(2)(111) and (iv), The South Texas Project Unit 1, is exempt from the require-ments of General Design Criterion (GDC) 4, Appendix A to 10 CFR 50 with respect to the dynamic loading effects associated with the postulated pipe breaks described in detail in Section 3.6.3 of Supplement 4 to the Safety Evaluation Report. These dynamic loading effects include pipe whip, jet impingement, and break-associated Specifically, this eliminates the need to dynamic transients.
install jet impingement barriers and pipe whip restraints associated with postulated pipe breaks in the pressurizer surge line, and the accumulator injection lines. This exemption will expire 6 months following completion of the current GDC-4 rulemaking changes or at the end of the second refueling outage, whichever occurs earlier.
(2) The facility requires a technical exemption from the requirements of 10 CFR 50, Appendix J, Section III.D.2(b)(ii). The justification of this exemption is contained in Section 6.2.6 of Supplement 3 to the
(2) The facility requires a technical exemption from the requirements of 10 CFR 50, Appendix J, Section III.D.2(b)(ii). The justification of this exemption is contained in Section 6.2.6 of Supplement 3 to the
                                                  ' Safety Evaluation Report. The staff's environmental assessment was published on                    .
' Safety Evaluation Report. The staff's environmental assessment was Therefore, pursuant to 10 CFR published on 50.12(a)(1),10 CFR 50.12(a)(2)(ii) and (iii), The South Texas Project Unit 1 is exempt from the quoted requirement and instead, is required to perform the overall air lock leak test at pressure P prior tc establishing containment integrity if air lock maintena$ce i
Therefore, pursuant to 10 CFR         -
has been performed that could affect the air lock sealing capability.
50.12(a)(1),10 CFR 50.12(a)(2)(ii) and (iii), The South Texas Project Unit 1 is exempt from the quoted requirement and instead, is required to perform the overall air lock leak test at pressure P i                                                  prior tc establishing containment integrity if air lock maintena$ce has been performed that could affect the air lock sealing capability.
l (3) The facility requires a schedular exemption from the requirements of General Design Criterion 57, Appendix A to 10 CFR 50. The staff has described in detail in Supplement 4 to the Safety Evaluation Report j
(3) The facility requires a schedular exemption from the requirements of l                                                  General Design Criterion 57, Appendix A to 10 CFR 50. The staff has j
the technical bases associated with this exemption. The staff's j
described in detail in Supplement 4 to the Safety Evaluation Report j
environmental assessment was published on Therefore, pursuant to 10 CFR 50.12(a)(2)(v) the South Texas Project Unit 1 is exempt from the requirements of GDC-57 applicable to the essential component cooling water (CCW) piping which is also used by the non-essential chilled water system in providng cooling to the Reactor Containment Fan Coolers (RCFC). This exemption will expire at the i
the technical bases associated with this exemption. The staff's Therefore, environmental assessment was published on                   .
end of the first refueling outage.
'                                                  pursuant to 10 CFR 50.12(a)(2)(v) the South Texas Project Unit 1 is exempt from the requirements of GDC-57 applicable to the essential component cooling water (CCW) piping which is also used by the i
i a
non-essential chilled water system in providng cooling to the Reactor Containment Fan Coolers (RCFC). This exemption will expire at the end of the first refueling outage.
i a                           .


                                                      ..              .      .                .. ~   -        -      .
.. ~
    *~
*~
e !C) : .
!C) : e (4) The facility was previously granted exemption from the criticality
                                                ~
~
(4) The facility was previously granted exemption from the criticality monitoring requirements of 10 CFR 70.24 (See Materials License No.
monitoring requirements of 10 CFR 70.24 (See Materials License No.
SNM-1972 dated December 29,'1986 and Section 9.1.2 of SSER-3). The South Texas Project Unit 1 is hereby. exempted from the criticality monitoring provisions of 10 CFR 70.24 as applied to fuel assemblies held under this license.
SNM-1972 dated December 29,'1986 and Section 9.1.2 of SSER-3). The South Texas Project Unit 1 is hereby. exempted from the criticality monitoring provisions of 10 CFR 70.24 as applied to fuel assemblies held under this license.
E. Except as otherwise provided in the Technical Specifications or Environmental Protection Plan..the licensee shall report any vio-lations of the requirements contained in Section 2.C. of this license in.the following manner: initia11 notification shall be made within twenty-four (24) hours to the NRC Operations Center via the Emergency Notification System with written follow-up within 30 days in accord-                   '
E.
ance with the procedures described in 10 CFR 50.73(b), (c), and (e).
Except as otherwise provided in the Technical Specifications or Environmental Protection Plan..the licensee shall report any vio-lations of the requirements contained in Section 2.C. of this license in.the following manner:
F. The licensees shall have and maintain financial protection of such type and in such amounts as the Commission shall require in accordance
initia11 notification shall be made within twenty-four (24) hours to the NRC Operations Center via the Emergency Notification System with written follow-up within 30 days in accord-ance with the procedures described in 10 CFR 50.73(b), (c), and (e).
* with Section 170 of the Atomic Energy Act of 1954, as amended, to cover public liability claims.
F.
G. This licensee is effective as of the date of issuance and shall expire at midnight on                 , 2027.
The licensees shall have and maintain financial 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.
1
G.
'                                                                    FOR THE NUCLEAR REGULATORY COMMISSION 4
This licensee is effective as of the date of issuance and shall expire at midnight on
, 2027.
1 FOR THE NUCLEAR REGULATORY COMMISSION 4
Thomas E. Murley, Director l
Thomas E. Murley, Director l
                                                                    ' Office of Nuclear Reactor Regulation
' Office of Nuclear Reactor Regulation


==Enclosures:==
==Enclosures:==
: 1. Attachment 1                                                                                        -
: 1.
;                      2. Appendix A - Technical Specifications (NUREG-1255) l
2.
: 3. Appendix B, Environmental Protection Plan
Appendix A - Technical Specifications (NUREG-1255) l 3.
: 4.         Appendix C, Antritrust Conditions i
Appendix B, Environmental Protection Plan 4.
i                      Date of Issuance:
Appendix C, Antritrust Conditions i
\
Date of Issuance:
i
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l c
l c
i
i


t 7
t 4
4                                                              ' ATTACHMENT 1 T0 OPERATING' LICENSE NO. NPF-71 Prior to criticality:
' ATTACHMENT 1 T0 OPERATING' LICENSE NO. NPF-71 7
1.'           Justify to the staff's satisfaction the-deviation from TMI Action Plan requirement II.E.4.2 as applied to the Component Cooling Water lines which provide cooling to the Reactor Coolant Pumps, Reactor Coolant Drain Tank Heat Exchanger, and Excess Letdown Heat Exchanger.
Prior to criticality:
: 2.           Incorporate into the FSAR the commitments on design modifications, and inspections to confirm adequacy thereof, related to the wear of Bottom-Mounted Instrumentation thimbles.
1.'
: 3.             Complete all actions to the staff's satisfaction on the items related to t
Justify to the staff's satisfaction the-deviation from TMI Action Plan requirement II.E.4.2 as applied to the Component Cooling Water lines which provide cooling to the Reactor Coolant Pumps, Reactor Coolant Drain Tank Heat Exchanger, and Excess Letdown Heat Exchanger.
the Seismic Qualifications Review Team audit documented in Section 3.10.1
2.
.                                  of SWR Supplement No. 3.
Incorporate into the FSAR the commitments on design modifications, and inspections to confirm adequacy thereof, related to the wear of Bottom-Mounted Instrumentation thimbles.
: 4.           . Document compliance with 10 CFR 50.49.
3.
: 5.           Demonstrate adequacy of design with respect to attachment of safety-related components to non-safety-related frames.
Complete all actions to the staff's satisfaction on the items related to the Seismic Qualifications Review Team audit documented in Section 3.10.1 t
: 6.           Justify deviations from Regulatory Guide 8.27.
of SWR Supplement No. 3.
: 7.           Justify deviations from Regulatory Guide 1.68 with respect to the Loss-of-Offsita-Power Test.
4.
. Document compliance with 10 CFR 50.49.
5.
Demonstrate adequacy of design with respect to attachment of safety-related components to non-safety-related frames.
6.
Justify deviations from Regulatory Guide 8.27.
7.
Justify deviations from Regulatory Guide 1.68 with respect to the Loss-of-Offsita-Power Test.
Prior to Full Power Operation:
Prior to Full Power Operation:
,                    1.             Address to the staff's satisfaction the items resulting from the SPDS j                                    audit conducted by the staff during January 27-30, 1987 and documented in i
1.
the meeting summary of March 12, 1987, i                     The' preoperational tests and testing exceptions identified in the attachment to                                       ,
Address to the staff's satisfaction the items resulting from the SPDS audit conducted by the staff during January 27-30, 1987 and documented in j
the {{letter dated|date=May 26, 1987|text=May 26, 1987 letter}} from J. H. Goldberg to the USNRC Document Control Desk j
the meeting summary of March 12, 1987, i
shall be completed in accordance with the scheduled commitments contained in that attachment.
i The' preoperational tests and testing exceptions identified in the attachment to the {{letter dated|date=May 26, 1987|text=May 26, 1987 letter}} from J. H. Goldberg to the USNRC Document Control Desk shall be completed in accordance with the scheduled commitments contained in j
that attachment.
i a
i a
I 4
I 4
i e                 e 4
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e 4


w                                                                                                               .
w CONFORMED i
CONFORMED i                                                                                           December 1980 LICENSE: CONDITIONS FOR SOUTH TEXAS PROJECT-
December 1980 LICENSE: CONDITIONS FOR SOUTH TEXAS PROJECT-
                                                            -UNITS NOS. 1 AND 2
-UNITS NOS. 1 AND 2
~
~
                                'The following definitions apply to paragraph I.B:
'The following definitions apply to paragraph I.B:
I. A.
I.
A.
(1) " Applicants" means severally and jointly Houston Lighting and Power Company (HLP), Central Power and Light Company (CPL),
(1) " Applicants" means severally and jointly Houston Lighting and Power Company (HLP), Central Power and Light Company (CPL),
                                        . City Public Service Board of San Antonio (CPSB), and the City of Austin Electric Utility Department (C0A) and any of their_             ,
. City Public Service Board of San Antonio (CPSB), and the City of Austin Electric Utility Department (C0A) and any of their_
respective successors, assignees, or subsidiaries engaged in the generation, transmission or the distribution of. electric power. Where a license condition is directed to a' specific Applicant, that Applicant is identified.
respective successors, assignees, or subsidiaries engaged in the generation, transmission or the distribution of. electric Where a license condition is directed to a' specific power.
(2) " South Texas Area" means (a) those counties in which Appli-cant's serve electric customers at wholesale or retail, and (b) those other areas, if any, surrounded by the areas in (a) above.                                                                   +
Applicant, that Applicant is identified.
l                                 (3) " Entity" means an electric utility which is a person, a private or public corporation, a governmental agency or
(2) " South Texas Area" means (a) those counties in which Appli-cant's serve electric customers at wholesale or retail, and (b) those other areas, if any, surrounded by the areas in (a) above.
!~                                        authority, a municipality, a cooperative, or an association of any of the foregoing owning, operating, or contractually controlling, or proposing in good faith to own, ' operate, or contractually control facilities for generation, transmission or distribution of electric power and energy for the purpose i
+
of providing electric utility service.
l (3) " Entity" means an electric utility which is a person, a private or public corporation, a governmental agency or authority, a municipality, a cooperative, or an association
4 (4) " Bulk Power" means the electric power and/or electric energy               l l'                                          supplied or made available at transmission or subtransmission l
!~
of any of the foregoing owning, operating, or contractually controlling, or proposing in good faith to own, ' operate, or contractually control facilities for generation, transmission or distribution of electric power and energy for the purpose of providing electric utility service.
i 4
l' (4) " Bulk Power" means the electric power and/or electric energy l
supplied or made available at transmission or subtransmission l
voltages.
voltages.
(5) " Costs" means all appropriate operating and maintenance
(5) " Costs" means all appropriate operating and maintenance expenses and all ownership costs where applicable.
;                                            expenses and all ownership costs where applicable.
l (6) The terms " connection" and " interconnection" are used inter-
[
[
l                                  (6) The terms " connection" and " interconnection" are used inter-i changeably.
changeably.
B. The Applicants defined in Paragraph I.A.(1) are subject to the                 ,
i B.
following antritrust conditions:
The Applicants defined in Paragraph I.A.(1) are subject to the following antritrust conditions:
,                                    (1) (a) CPL         shall afford to the Public Utilities Board of the City of Brownsville an opportunity to participate in the South Texas Projects, Units 1 and 2, on reasonable terms e                                                                                                                  l and conditions and in accordance with the South Texas Project Participation Agreement and on a basis that will fully compensate CPL for its actual costs, provided that 4
(1) (a) CPL shall afford to the Public Utilities Board of the City of Brownsville an opportunity to participate in the South Texas Projects, Units 1 and 2, on reasonable terms l
l                       Appendix C - South Texas f
and conditions and in accordance with the South Texas e
l                                     .                                        .
Project Participation Agreement and on a basis that will fully compensate CPL for its actual costs, provided that 4
  --.a.-_.---
l Appendix C - South Texas f
l
--.a.-.---


i
i
  .l 2-Brownsville must enter into a firm commitment to acquire the ownership interest made availatie to it by the terms of this paragraph no later than Ja uary 1,1983. The ownership interest which CPL shall make available to Brownsville shall be computed by r;1tiplying CPL's Generation Entitlement Share in STP Units 1 and 2 by the ratio of Brownsville's peak demand for 1980 to CPL's peak demand for 1980. In the event Brownsville obtains an ownership interest from any Applicant other than CPL, the ownership interest which CPL sast make available to Brownsville hereunder shall be redaced by one megawatt for each megawatt in excess of 12 segawatts that Browns-ville acquires from other Applicants. Applicants shall not exercise any rights of first refusal over Brownsville's efforts to participate in the South Texas Project to the extent of the first 50 MW of such ownership share.
.l 2-Brownsville must enter into a firm commitment to acquire the ownership interest made availatie to it by the terms of this paragraph no later than Ja uary 1,1983.
(b) CPL       shall afford services     to enable           Brownsville reasonable it to obtain delivery transmission of power from the STP, provided that CPL is fully compensated for its costs of such transmission services plus a reasonable return on investment, and provided further that in the event transmission capacity is not available to provide such transmission services, the provisions of Paragraph I.B.(4) hereof define the extent of the obligation which CPL has with respect to the construction of additional' transmission facilities necessary to provide such trans-                   ,
The ownership interest which CPL shall make available to Brownsville shall be computed by r;1tiplying CPL's Generation Entitlement Share in STP Units 1 and 2 by the ratio of Brownsville's peak demand for 1980 to CPL's peak demand for 1980.
mission service.
In the event Brownsville obtains an ownership interest from any Applicant other than CPL, the ownership interest which CPL sast make available to Brownsville hereunder shall be redaced by one megawatt for each megawatt in excess of 12 segawatts that Browns-ville acquires from other Applicants. Applicants shall not exercise any rights of first refusal over Brownsville's efforts to participate in the South Texas Project to the extent of the first 50 MW of such ownership share.
(c) CPL will also afford all reasonable coordination services (including but not limited to reserve sharing, backup
(b) CPL shall afford Brownsville reasonable transmission services to enable it to obtain delivery of power from the STP, provided that CPL is fully compensated for its costs of such transmission services plus a reasonable return on investment, and provided further that in the event transmission capacity is not available to provide such transmission services, the provisions of Paragraph I.B.(4) hereof define the extent of the obligation which CPL has with respect to the construction of additional' transmission facilities necessary to provide such trans-mission service.
                        -                              power, maintenance power and emergency power) necessary for Brownsville to have effective access to power fron
(c) CPL will also afford all reasonable coordination services (including but not limited to reserve sharing, backup power, maintenance power and emergency power) necessary for Brownsville to have effective access to power fron STP obtained from CPL, provided that CPL is fully com-pensated for its costs of providing such coordination j
* STP obtained from CPL, provided that CPL is fully com-j pensated for its costs of providing such coordination i
services plus a reasonable return on investment.
services plus a reasonable return on investment.
(d) Each       Applicant shall facilitate where necessary Browns-ville's obtaining the participation interests and services
i Each Applicant shall facilitate where necessary Browns-(d) ville's obtaining the participation interests and services i.
: i.                                                     specified in paragraphs 1(a),1(b), and 1(c) above.
specified in paragraphs 1(a),1(b), and 1(c) above.
l
l The Applicants, as long as they are members of the Texas (2)
<                                    (2) The           Applicants, as long as they are members of the Texas Interconnected Systems (TIS) or any other organization which considers the planning for or operations of ERCOT-TIS elec-tric utilities, shall support reasonable requests by Entities in the South Texas Area having generation capacity for member-l l
Interconnected Systems (TIS) or any other organization which considers the planning for or operations of ERCOT-TIS elec-tric utilities, shall support reasonable requests by Entities in the South Texas Area having generation capacity for member-l l
ship in TIS or such other organizations. The Applicants shall also propose and actively support, as long as they are l                                               members thereof, the creation of one or more additional j
ship in TIS or such other organizations.
i Appendix C - South Texas l
The Applicants shall also propose and actively support, as long as they are l
i i                        -                                    ..
members thereof, the creation of one or more additional j
    ,----.~,my-----,w                 ,me-..     ,                w,me-cn e m3 --w e                         -                      --
i l
Appendix C - South Texas i
i
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w,me-cn e m3 --w e


classification of TIS membership, based on non-discriminatory criteria to afford access to data, studies and recommendations to all Entities in the South Texas Area who desire membership.
classification of TIS membership, based on non-discriminatory criteria to afford access to data, studies and recommendations to all Entities in the South Texas Area who desire membership.
The Applicants shall share information with other Entities with respect to,'and shall conduct with other such Entities through any electric utility planning organizations of which the' Applicants are members, joint studies and planning of future generation, transmission and related facilities; provided, however, that this condition shall not obligate the Applicantstoconductsuchjointstudiesorjointplanning unless (1) the studies or planning are requested and carried out in good faith and based on reasonably realistic and reasonably complete data or projections, (2) the studies or planning are reasonably justified on the basis of sound               t.
The Applicants shall share information with other Entities with respect to,'and shall conduct with other such Entities through any electric utility planning organizations of which the' Applicants are members, joint studies and planning of future generation, transmission and related facilities; provided, however, that this condition shall not obligate the Applicantstoconductsuchjointstudiesorjointplanning unless (1) the studies or planning are requested and carried out in good faith and based on reasonably realistic and reasonably complete data or projections, (2) the studies or planning are reasonably justified on the basis of sound t.
engineering principles, (3) appropriate protection is accorded proprietary or other confidential business and financial information, and (4) the costs of such studies or           i i
engineering principles, (3) appropriate protection is accorded proprietary or other confidential business and financial information, and (4) the costs of such studies or i
planning are allocated on a fair and equitable basis, (3) Each Applicant shall participate in and facilitate the exchange of bulk power by transmission over its own transmission facilities between or among two or.more Entities in the South Texas Area with which the Applicant is connected; and between         :
planning are allocated on a fair and equitable basis, i
any such Entity (fes) and any Entity (ies) outside the South         ,
(3) Each Applicant shall participate in and facilitate the exchange of bulk power by transmission over its own transmission facilities between or among two or.more Entities in the South Texas Area with which the Applicant is connected; and between any such Entity (fes) and any Entity (ies) outside the South Texas Area between whose facilities the Applicant's trans-mission lines and other transmission lines, including direct current (asynchronous) transmission lines, form a continuous electrical path; provided, that (1) permission to utilize such other transmission lines has been requested by the pro-ponent of the arrangement, (ii) the arrangements reasonably can be accommodated from a functional and technical stand-point, and (iii) any Entity (ies) requesting such transmission arrangements shall have given reasonable advance notice of I
Texas Area between whose facilities the Applicant's trans-mission lines and other transmission lines, including direct current (asynchronous) transmission lines, form a continuous electrical path; provided, that (1) permission to utilize such other transmission lines has been requested by the pro-ponent of the arrangement, (ii) the arrangements reasonably can be accommodated from a functional and technical stand-           '
its (their) schedule and requirements. Such transmission
point, and (iii) any Entity (ies) requesting such transmission arrangements shall have given reasonable advance notice of I
[
!                          its (their) schedule and requirements. Such transmission             [
shall be on terms that fully compensate an Applicant for its costs including a reasonable return on investment; provided, however, that such transmission services and the rates to be l
shall be on terms that fully compensate an Applicant for its
charged therefor shall be subject to the jurisdiction of the appropriate regulatory agency (ies). Where the rates to be charged are subject to the jurisdiction of an appropriate regulatory authority, the Applicants shall not refuse to l
;                          costs including a reasonable return on investment; provided, however, that such transmission services and the rates to be l
provide such transmission services merely because the rate (s) i to be charged therefor are the subject of dispute with such Entity (tes).
charged therefor shall be subject to the jurisdiction of the appropriate regulatory agency (ies). Where the rates to be charged are subject to the jurisdiction of an appropriate           ;
An Applicant shall not be required to enter into any' arrangement which would unreasonably impair system 7
regulatory authority, the Applicants shall not refuse to l
I
provide such transmission services merely because the rate (s)       i to be charged therefor are the subject of dispute with such Entity (tes). An Applicant shall not be required to enter 7
[
I into any' arrangement which would unreasonably impair system reliability or emergency transmission capacity, it being
reliability or emergency transmission capacity, it being recognized that while some transmission may be operated fully loaded other transmission may be for emergency use and operated either unloaded or partially loaded.
[                          recognized that while some transmission may be operated fully loaded other transmission may be for emergency use and operated either unloaded or partially loaded.
Appendix C - South Texas
Appendix C - South Texas


m (4) 'Each Applicant shall include in its planning and construction programs sufficient transmission capacity as required for the transactions referred to in paragraph I.B.(3) (and I.B.(5) for CPL), provided any Entity (ies) in the South Texas Area gives an Applicant sufficient advance notice as may be neces-sary to accomodate its (their) requirements from a functional and technical standpoint and that such Entity (tes) fully compensates an Applicant for its costs including a reasonable return on investment.1/ An Applicant shall not be required to construct transmission facilities if construction of such facilities is infeasible, or if such would unreasonably impair system reliability or emergency transactions capacity.
m (4) 'Each Applicant shall include in its planning and construction programs sufficient transmission capacity as required for the transactions referred to in paragraph I.B.(3) (and I.B.(5) for CPL), provided any Entity (ies) in the South Texas Area gives an Applicant sufficient advance notice as may be neces-sary to accomodate its (their) requirements from a functional and technical standpoint and that such Entity (tes) fully compensates an Applicant for its costs including a reasonable return on investment.1/ An Applicant shall not be required to construct transmission facilities if construction of such facilities is infeasible, or if such would unreasonably impair system reliability or emergency transactions capacity.
In connection with the performance of the obligations above, an Applicant shall not be foreclosed from requiring a reason-able contribution in aid of construction or from making arrangements for coordinated construction of future trans-mission lines such that each of the parties to the trans-action would own an interest in or a segment of the trans-mission addition in proportion to its share of the cost of the addition. Any such contribution made in aid of construc-tion or ownership interest shall also be properly credited in determining any wheeling charges.               If an Applicant engages in joint ownership of transmission lines with any other Entity (ies),
In connection with the performance of the obligations above, an Applicant shall not be foreclosed from requiring a reason-able contribution in aid of construction or from making arrangements for coordinated construction of future trans-mission lines such that each of the parties to the trans-action would own an interest in or a segment of the trans-mission addition in proportion to its share of the cost of the addition.
Any such contribution made in aid of construc-tion or ownership interest shall also be properly credited in determining any wheeling charges.
If an Applicant engages in joint ownership of transmission lines with any other Entity (ies),
it shall not refuse to engage in similar transactions in comparable circumstances with other Entities, subject to the provisions limiting an Applicant's obligations above.
it shall not refuse to engage in similar transactions in comparable circumstances with other Entities, subject to the provisions limiting an Applicant's obligations above.
(5) CPL shall, upon reasonable advance notice, enter into arrange-ments for the sale of full and partial requirements bulk power pursuant to a filed tariff to any requesting Entity having a non-aggregated generating capacity of 200 megawatts or less under reasonable terms and conditions which shall include a provision for CPL to recover its costs of providing             .
(5) CPL shall, upon reasonable advance notice, enter into arrange-ments for the sale of full and partial requirements bulk power pursuant to a filed tariff to any requesting Entity having a non-aggregated generating capacity of 200 megawatts or less under reasonable terms and conditions which shall include a provision for CPL to recover its costs of providing such service plus a reasonable return on investment.
such service plus a reasonable return on investment.               Such tariff shall not require C?L to enter into any arrangement for such sale (s) if (a) it does not have available sufficient bulk power or adequate transmission to provide the requested service; or (b) the sale would impair CPL's ability to render adequate and reliable service to its own customers or its ability to discharge prior commitments.             It is expressly recognized, and such tariff may reflect, that the determination whether suffi-cient bulk power or adequate transmission is available to accom-modate a request for full or partial requirements bulk power will consider and recognize that (1) CPL will be engaging in y    Nothing in this paragraph shall require CPSB or C0A to undertake any action (s) which may be contrary to any state constitutional provision.
Such tariff shall not require C?L to enter into any arrangement for such sale (s) if (a) it does not have available sufficient bulk power or adequate transmission to provide the requested service; or (b) the sale would impair CPL's ability to render adequate and reliable service to its own customers or its ability to discharge prior commitments.
It is expressly recognized, and such tariff may reflect, that the determination whether suffi-cient bulk power or adequate transmission is available to accom-modate a request for full or partial requirements bulk power will consider and recognize that (1) CPL will be engaging in Nothing in this paragraph shall require CPSB or C0A to undertake any y
action (s) which may be contrary to any state constitutional provision.
Appendix C - South Texas
Appendix C - South Texas


centralized economic dispatch with its affiliates in accord-ance with, and pursuant to the requirements of, the Public Utility Holding Company Act of 1935, (2) pursuant to such requirements CPL may first utilize its generating and trans-mission capacity to accomplish such centralized economic dispatch before its generating and trar.smission capacity is made available for full or partial requirements bulk power sales under the tariff, and (3) if other CSW system capacity becomes available by reason of CPL's pa-ticipatic, in such centralized economic dispatch, then such other CSd system capacity will, at the option of CSW, be made available in lieu of CPL's obligation to provide such capacity. Any curtailment of CPL s full or partial requirements sales shall be on a reasonable and non-discriminatory (where possible) basis.
centralized economic dispatch with its affiliates in accord-ance with, and pursuant to the requirements of, the Public Utility Holding Company Act of 1935, (2) pursuant to such requirements CPL may first utilize its generating and trans-mission capacity to accomplish such centralized economic dispatch before its generating and trar.smission capacity is made available for full or partial requirements bulk power sales under the tariff, and (3) if other CSW system capacity becomes available by reason of CPL's pa-ticipatic, in such centralized economic dispatch, then such other CSd system capacity will, at the option of CSW, be made available in lieu of CPL's obligation to provide such capacity.
(6) (a) In connection with the performance of its obligations herein and subject to the provisions of this paragraph, HLP shall not disconnect from or refuse to connect its then-existing or proposed facilities with the facilities of any Entity used or proposed to be used for the trans-mission of electric energy in interstate commerce by reason of the interstate character of such facilities, and HLP will not prevent any Entity with which it main-tains connections from establishing, maintaining, modi-fying or utilizing a connection with facilities used or proposed to be used for the transmission of electric energy in interstate commerce by reason of the inter-state character of such facilities, provided that, anything in these license conditicas to the contrary notwithstanding (but subject to stbparagraph 6(b) and 6(d) below) any Entity seeking to establish, maintain, modify or utilize any connection which could affect the     .
Any curtailment of CPL s full or partial requirements sales shall be on a reasonable and non-discriminatory (where possible) basis.
nonjurisdictional status of HLP under the Federal Power Act shall have filed an application with and used its best efforts to obtain an order from the FERC, applicable to HLP under Section 210, 211 and 212 of such Act, requiring the establishment, maintenance, modification or utilization of such connection. In the event that an Entity files an application pursuant to this subparagraph, HPL agrees that it will not unreasonably oppose any such application. In the event such application is denied by a valid order of the FERC, any continuing refusal by HLP to estabish, maintain, modify or utilize such connection with such Entity shall be subject to review by the NRC in accordance with the Atomic Energy Act of 1954, as amended, and the rules and regulations thereunder, to determine whether any such refusal woult' create or maintain e-situation inconsistent with the antitrust Appendix C - South Texas
(6) (a) In connection with the performance of its obligations herein and subject to the provisions of this paragraph, HLP shall not disconnect from or refuse to connect its then-existing or proposed facilities with the facilities of any Entity used or proposed to be used for the trans-mission of electric energy in interstate commerce by reason of the interstate character of such facilities, and HLP will not prevent any Entity with which it main-tains connections from establishing, maintaining, modi-fying or utilizing a connection with facilities used or proposed to be used for the transmission of electric energy in interstate commerce by reason of the inter-state character of such facilities, provided that, anything in these license conditicas to the contrary notwithstanding (but subject to stbparagraph 6(b) and 6(d) below) any Entity seeking to establish, maintain, modify or utilize any connection which could affect the nonjurisdictional status of HLP under the Federal Power Act shall have filed an application with and used its best efforts to obtain an order from the FERC, applicable to HLP under Section 210, 211 and 212 of such Act, requiring the establishment, maintenance, modification or utilization of such connection.
In the event that an Entity files an application pursuant to this subparagraph, HPL agrees that it will not unreasonably oppose any such application.
In the event such application is denied by a valid order of the FERC, any continuing refusal by HLP to estabish, maintain, modify or utilize such connection with such Entity shall be subject to review by the NRC in accordance with the Atomic Energy Act of 1954, as amended, and the rules and regulations thereunder, to determine whether any such refusal woult' create or maintain e-situation inconsistent with the antitrust Appendix C - South Texas


6-laws or the' policies thereunder in accordance with the standards set forth in Section 105 of such Act; provided that all factual determinations by the FERC on any cost or system reliability reason (s) for any such refusal shall not be subject to redetermination by the NRC. The burden of proof will be on the HLP in such NRC proceeding.
6-laws or the' policies thereunder in accordance with the standards set forth in Section 105 of such Act; provided that all factual determinations by the FERC on any cost or system reliability reason (s) for any such refusal shall not be subject to redetermination by the NRC.
The burden of proof will be on the HLP in such NRC proceeding.
(b) HLP shall not enter into or maintain any agreement or understanding with any other Entity (ies) or Applicant to refuse to deal with another Entity (ies) or Applicant (s) with the purpose of maintaining a non-jurisdictional status under the Federal Power Act, and in the event-that HPL refuses to make an interconnection with or chooses to disconnect from any Entity (ies), such decision and/or action by HLP will be undertaken unilaterally, not jointly, and without consultation with any other Entity (ies), provided, however, that after HLP decides to undertake such action, it may notify any affected Entity of its decision.
(b) HLP shall not enter into or maintain any agreement or understanding with any other Entity (ies) or Applicant to refuse to deal with another Entity (ies) or Applicant (s) with the purpose of maintaining a non-jurisdictional status under the Federal Power Act, and in the event-that HPL refuses to make an interconnection with or chooses to disconnect from any Entity (ies), such decision and/or action by HLP will be undertaken unilaterally, not jointly, and without consultation with any other Entity (ies), provided, however, that after HLP decides to undertake such action, it may notify any affected Entity of its decision.
(c) In the event that an Entity files an application pursuant to subparagraph (a) of this paragraph solely by reason of HLP's desire to maintain its non-jurisdictional status under the Federal Power Act, HLP agrees to pay such Entity's reasonable expenses in connection with such 4
(c) In the event that an Entity files an application pursuant to subparagraph (a) of this paragraph solely by reason of HLP's desire to maintain its non-jurisdictional status under the Federal Power Act, HLP agrees to pay such Entity's reasonable expenses in connection with such application and the ensuring proceeding, 2/ provided,.
application and the ensuring proceeding, 2/ provided,.
4 however, that HLP shall not be required to pay for any expenses of such Entity of that Entity's application is i
however, that HLP shall not be required to pay for any i
[
expenses of such Entity of that Entity's application is
denied by FERC for reasons advocated by HLP at FERC, and provided further, that HLP shall not be required to pay for any costs or expenses of such Entity which that Entity would have incurred had it not failed an applica-tion solely by reason of HLP's desire to maintain its i
[                                                                           denied by FERC for reasons advocated by HLP at FERC, and
non-jurisdictional status under the Federal Power Act.
'                                                                            provided further, that HLP shall not be required to pay for any costs or expenses of such Entity which that Entity would have incurred had it not failed an applica-                                     -
(d) Nothing in these License Conditions shall impair the right of the Department of Justice or any other Entity, public or private, to file an antitrust action in any Federal Court in the event any Applicant refuses to I
tion solely by reason of HLP's desire to maintain its i
establish, maintain, modify or utilize any connection l
'                                                                            non-jurisdictional status under the Federal Power Act.
with any Entity (ies), provided that nothing herein shall preclude any Applicant from raising any legal or equitable i
(d) Nothing in these License Conditions shall impair the right of the Department of Justice or any other Entity, public or private, to file an antitrust action in any I
defense that may be available to it.
Federal Court in the event any Applicant refuses to establish, maintain, modify or utilize any connection l                                                                             with any Entity (ies), provided that nothing herein shall i
I This obligation shall not apply to the expenses of Central and South West 2/
preclude any Applicant from raising any legal or equitable defense that may be available to it.
Corporation or Texas Utilities Company or any of their respective sub-sidiaries, including but not limited to the expenses of CSW and any of i
I 2/    This obligation shall not apply to the expenses of Central and South West Corporation or Texas Utilities Company or any of their respective sub-i sidiaries, including but not limited to the expenses of CSW and any of i
i its subsidiaries incurred in FERC Docket No. EL79-8.
its subsidiaries incurred in FERC Docket No. EL79-8.
i l
i l
l Appendix C - South Texas
l
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Appendix C - South Texas t
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* efe       y, (7)" HLP agrees to use its best efforts to amend any: agreements
l./
                                            ^
7-e efe y, (7)" HLP agrees to use its best efforts to amend any: agreements
                                                    ' with all Entities to ensure that such agreements aronot'~
' with all Entities to ensure that such agreements aronot'~
* inconsistent with paragraphs (6)(a) and (6)(b) hereof.                   /      <
^
(8)       If Applicar.ts participate in any future w;1 ear units other than those which are now under construction or for which an                       . 'f application for a'canstruction permit hasiteen filed, they                   V' ' [ '             ,
/
                                            /            will afford similar participation to Entities in the South Texas Ares'on a reasonable basis.
* inconsistent with paragraphs (6)(a) and (6)(b) hereof.
3 (9) ' App 1! canth, a; gree that the reliability of power delivered? into                                  ,
(8)
TIS-ERCOT over DC asynchronous connections shall not be treated differently by the Applicants, for purposes of spinning i            '              '
If Applicar.ts participate in any future w;1 ear units other
and installed reserve calculations and requirements, than
. 'f than those which are now under construction or for which an application for a'canstruction permit hasiteen filed, they V' ' [ '
                                                                ~
will afford similar participation to Entities in the South
/
Texas Ares'on a reasonable basis.
' App 1! canth, a; gree that the reliability of power delivered into 3
(9)
?
TIS-ERCOT over DC asynchronous connections shall not be i
treated differently by the Applicants, for purposes of spinning and installed reserve calculations and requirements, than
~
would be the case if such power. originated with TIS-ERCOT.
would be the case if such power. originated with TIS-ERCOT.
4 ,
/OutagesonDC.asynchronousconnectionsshallbetreatedby 4,
                                                      /OutagesonDC.asynchronousconnectionsshallbetreatedby                                                     i
i the Applicants in the same way as losses of generation within'
* the Applicants in the same way as losses of generation within'
[ TIS-ERCOT. Applicants agree to support the adoption o.f.
[ TIS-ERCOT. Applicants agree to support the adoption o.f .
principles involving DC asynchronous connections contain(d in this paragraph within any TIS or ERCOST organization.
                                          !                principles involving DC asynchronous connections contain(d         6 in this paragraph within any TIS or ERCOST organization.
6 (10) HLP and CPL shall use their best efforts to modify the O fer''
(10) HLP and CPL shall use their best efforts to modify the O fer''
of+ Settlement filetf in FERC Docket No. EL79-8,to include each of the undertakings set forth in the letter'ag(eement_
of+ Settlement filetf in FERC Docket No. EL79-8,to include each of the undertakings set forth in the letter'ag(eement_                                         .
among HLP, Central and South West Corporation, Ten s utilities Company and the FERC staff, dated September 11;3980. 'HLP and CPL shall thereafter use their best efferts to decure approval thereof by,the FERC, and shall abide by thy valid order (s) of the FERC issued purusant to the Offer of Settle-ment. Nothing herein shall preclude the Department of Justice
among HLP, Central and South West Corporation, Ten s utilities Company and the FERC staff, dated September 11;3980. 'HLP and CPL shall thereafter use their best efferts to decure approval thereof by ,the FERC, and shall abide by thy valid order (s) of the FERC issued purusant to the Offer of Settle-ment. Nothing herein shall preclude the Department of Justice
.from instituting or intervening in.any proceeding at FERC, including Docket No. EL79-8, and from presenting such argu-ments and evidence that it deems appropriate.
                                                          .from instituting or intervening in.any proceeding at FERC, including Docket No. EL79-8, and from presenting such argu-ments and evidence that it deems appropriate.
(11) The-foregoing conditions shall b's implemented (1) in a manner consistent with applicable Federal, strte and local statutes and regulations, and (2) subject to any regulatory agency l
(11) The-foregoing conditions shall b's implemented (1) in a manner consistent with applicable Federal, strte and local statutes and regulations, and (2) subject to any regulatory agency l
having jurisdiction. Nothing herein shall         preclude the or other relief to, which Applicants from seeking an exemptior'e law or shall be construed they may be entitled under applicab1 as a waiver of their right to conte %t the applicability of                                       i the license conditions with respect to aay factual situations l
having jurisdiction.
i I1                                  Appendix C - South Texas                                 ,  ,
Nothing herein shall preclude the or other relief to, which Applicants from seeking an exemptior'e law or shall be construed they may be entitled under applicab1 i
i/
as a waiver of their right to conte %t the applicability of the license conditions with respect to aay factual situations l
i                                                                                                   /     )                                         <
i I 1 Appendix C - South Texas i/
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  .g h-June 11, 1987 0
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Docket No. 50-498                                                                                                                     i MEMORANDUM FOR: Charles E. Rossi, Director Division of Operational Events Assessment Lawrence Shao, Director Division of Engineering and Systems Technology James G. Partlow, Director Division of Reactor Inspection and Safeguards Frank J. Congel, Director Division of Radiation Protection and Emergency Preparedness Jack W. Roe, Director Division of Licensee Performance and Quclity Evaluation FROM:                 Jose A. Calvo, Director Project Directorate - IV Division of Reactor Projects - III, IV, V and Special Projects
.g June 11, 1987 0
Docket No. 50-498 i
MEMORANDUM FOR: Charles E. Rossi, Director Division of Operational Events Assessment Lawrence Shao, Director Division of Engineering and Systems Technology James G. Partlow, Director Division of Reactor Inspection and Safeguards Frank J. Congel, Director Division of Radiation Protection and Emergency Preparedness Jack W. Roe, Director Division of Licensee Performance and Quclity Evaluation FROM:
Jose A. Calvo, Director Project Directorate - IV Division of Reactor Projects - III, IV, V and Special Projects


==SUBJECT:==
==SUBJECT:==
REVIEW OF DRAFT LICENSE FOR LOW POWER OPERATION ON SOUTH TEXAS PROJECT UNIT 1 Enclosed is the subject draft license which is being transmitted for your review and comment. This draft copy does not contain the Technical Specifi-cations, the Environmental Protection Plan and the Indemnity Agreements.
REVIEW OF DRAFT LICENSE FOR LOW POWER OPERATION ON SOUTH TEXAS PROJECT UNIT 1 Enclosed is the subject draft license which is being transmitted for your review and comment.
This draft copy does not contain the Technical Specifi-cations, the Environmental Protection Plan and the Indemnity Agreements.
The license conditions and exemptions have been identified subject to finali-zation of the Environmental Assessment and the Safety Evaluation Report.
The license conditions and exemptions have been identified subject to finali-zation of the Environmental Assessment and the Safety Evaluation Report.
Attachment I shows items which are currently being addressed; resolution on most of them.is expected at the time of issuance.
Attachment I shows items which are currently being addressed; resolution on most of them.is expected at the time of issuance.
                                                                                                                                            ~
~
Please provide your comments by June 19, 1987 so that the staff can be ready
Please provide your comments by June 19, 1987 so that the staff can be ready to issue the license in the last week of June if the applicant completes con-l struction on schedule.
:        to issue the license in the last week of June if the applicant completes con-l struction on schedule.
l OriginalsigmEdN LL )
l                                                                           OriginalsigmEdN           ,
Jose A. Calvo, Direc r Project Directorate - IV Division of Reactor Projects - III, IV V and Special Projects CONTACT:
Jose A. Calvo, Direc r LL )
l N. P. Kadambi, NRR/PD-IV i
Project Directorate - IV Division of Reactor Projects - III, IV V and Special Projects CONTACT:
49-29407 l
l         N. P. Kadambi, NRR/PD-IV i
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49-29407 l         DISTRIBUTION Docket File       NAC PORs Local PDR         PD4 Reading DCrutchfield       NPKadambi
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p#                                     UNITED STATES
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    !    ,      o                NUCLEAR REGULATORY COMMISSION WASHINGTON, D. C. 20666
UNITED STATES NUCLEAR REGULATORY COMMISSION o
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WASHINGTON, D. C. 20666 g
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l
HOUSTON LIGHTING AND POWER COMPANY CITY PUBLIC SERVICE BOARD OF SAN ANTONIO CENTRAL POWER AND LIGHT COMPANY CITY OF AUSTIN, TEXAS DOCKET NO. 50-498 SOUTH TEXAS PROJECT, UNIT 1 FACILITY OPERATING LICENSE License No. NPF-71
%,....+/
: 1. The Nuclear Regulatory Commission (the Commission or the NRC) has found that:
HOUSTON LIGHTING AND POWER COMPANY CITY PUBLIC SERVICE BOARD OF SAN ANTONIO CENTRAL POWER AND LIGHT COMPANY CITY OF AUSTIN, TEXAS DOCKET NO. 50-498 SOUTH TEXAS PROJECT, UNIT 1 FACILITY OPERATING LICENSE License No. NPF-71 The Nuclear Regulatory Commission (the Commission or the NRC) has found 1.
A. The application for a license filed by Houston Lighting and Power Company * (HL&P) acting on behalf of itself and as agent for the City Public Service Board of San Antonio (CPS), Central Power and Light Company (CPL), and City of Austin, Texas (C0A) (licensees) complies 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 duly made;
that:
: 8. Construction of the South Texas Project, Unit 1, (the facility) has been substantially completed in conformity with Construction Permit No. CPPR-128 and the application, as amended, the provisions of the Act, and the regulations of the Commission;                           ,
A.
C. The facility will operate in conformity with the application, as amcnded, the provisions of the Act, and the regulations of the Com-mission, (except as exempted from compliance in Section 2.0. below);
The application for a license filed by Houston Lighting and Power Company * (HL&P) acting on behalf of itself and as agent for the City Public Service Board of San Antonio (CPS), Central Power and Light Company (CPL), and City of Austin, Texas (C0A) (licensees) complies 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 duly made; Construction of the South Texas Project, Unit 1, (the facility) has 8.
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 p
been substantially completed in conformity with Construction Permit No. CPPR-128 and 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 amcnded, the provisions of the Act, and the regulations of the Com-mission, (except as exempted from compliance in Section 2.0. 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 p
Section 2.D. below);
Section 2.D. below);
            " Houston Lighting and Power Company is cuthorized to act as agent for the City Public Service Board of San Antonio, Central Power and Light Company and City i
" Houston Lighting and Power Company is cuthorized to act as agent for the City Public Service Board of San Antonio, Central Power and Light Company and City of Austin, Texas and has exclusive responsibility and control over the i
of Austin, Texas and has exclusive responsibility and control over the physical construction, operation and maintenance of the facility.
physical construction, operation and maintenance of the facility.
l I
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l                                                                                 -
l


t .
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E. Houston Lighting and Power Company is technically qualified to engage in the activities authorized by this license in accordance with the -
E.
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. After 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-71, is subject to the conditions for pro-tection of the environment set forth in the Environmental Protec-tion Plan attached as Appendix B, is in accordance with 10 CFR Part 51 of the Commission's regulations and all applicable require-ments have been satisfied; and I. The receipt, possession, and use of source, byproduct and special nuclear material as authorized by this license will be in accord-ance with the C9mmission's regulations in 10 CFR Parts 30, 40 and 70.
Houston Lighting and Power Company is technically qualified to engage in the activities authorized by this license in accordance with the -
: 2. Bcsed on the foregoing findings and the Partial Initial Decision (Opera-ting License) (Phases II/III), dated June 13, 1986 and the Partial Initial Decision (Authorizing Operating Licenses), dated August 29, 1986 by the Atomic and Safety Licensing Board regarding this facility, Facility Operating License No. NFP-71, is hereby issued to Houston Lighting and
Commission's regulations set forth in 10 CFR Chapter I; F.
              . Power Company, City Public Service Board of San Antonio, Central Power and Light Company, and City of Austin, Texas (the licensees) to read as follows:                                                                                     .
The licensees have satisfied the applicable provisions of 10 CFR Part 140, " Financial Protection Requirements and Indemnity Agreements," of the Commission's regulations; G.
A.-   This license applies to the South Texas Project, Unit 1, a pres-surized water reactor, and associated equipment (the facility) owned by Houston Lighting and Power Company, City Public Service Board of San Antonio, Central Power and Light Company and City of Austin, Texas. The facility is located in Matagorda County, Texas, west of the Colorado River, 8 miles north-northwest of the town of Matagorda and about 89 miles southwest of Houston and is described in the licensees' Final Safety Analysis Report, as supplemented and amended, and in the licensee's Environmental Report, as supplemented and amended; c - -
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.
                          -    - - - .          -- --    e--       e..   , , -. m     v---   --- - - -  -v-- -
After 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-71, is subject to the conditions for pro-tection of the environment set forth in the Environmental Protec-tion Plan attached as Appendix B, is in accordance with 10 CFR Part 51 of the Commission's regulations and all applicable require-ments have been satisfied; and I.
The receipt, possession, and use of source, byproduct and special nuclear material as authorized by this license will be in accord-ance with the C9mmission's regulations in 10 CFR Parts 30, 40 and 70.
2.
Bcsed on the foregoing findings and the Partial Initial Decision (Opera-ting License) (Phases II/III), dated June 13, 1986 and the Partial Initial Decision (Authorizing Operating Licenses), dated August 29, 1986 by the Atomic and Safety Licensing Board regarding this facility, Facility Operating License No. NFP-71, is hereby issued to Houston Lighting and
. Power Company, City Public Service Board of San Antonio, Central Power and Light Company, and City of Austin, Texas (the licensees) to read as follows:
A.-
This license applies to the South Texas Project, Unit 1, a pres-surized water reactor, and associated equipment (the facility) owned by Houston Lighting and Power Company, City Public Service Board of San Antonio, Central Power and Light Company and City of Austin, Texas. The facility is located in Matagorda County, Texas, west of the Colorado River, 8 miles north-northwest of the town of Matagorda and about 89 miles southwest of Houston and is described in the licensees' Final Safety Analysis Report, as supplemented and amended, and in the licensee's Environmental Report, as supplemented and amended; c
e--
e..
m v---
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qn t
qn t Subject to the conditions and requirements incorporated herein, the B.
B. Subject to the conditions and requirements incorporated herein, the Commission hereby licenses:
Commission hereby licenses:
            -(1) Houston Lighting ar.d Power Company (HL&P) pursuant to Section 103 of the Act and 10 CFR Part 50, to possess, use and operate the facility at the designated location in Matagorda County, Texas, in accordance with the procedures and limitations set forth in this license; (2) Pursuant     to the Act and 10 CFR Part 50, the City Public Service Board of San Antonio (CPS), Central Power and Light Company (CPL),
-(1) Houston Lighting ar.d Power Company (HL&P) pursuant to Section 103 of the Act and 10 CFR Part 50, to possess, use and operate the facility at the designated location in Matagorda County, Texas, in accordance with the procedures and limitations set forth in this license; Pursuant to the Act and 10 CFR Part 50, the City Public Service (2)
and the City of Austin, Texas (COA), to possess the facility at the designated location in Matagorda County, Texas, in accordance with the procedures and limitations set forth in this license; (3) HL&P, pursuant to the Act and 10 CFR Part 70, to receive, possess and use at any time special nuclear material as reactor fuel, in accordance with the limitations for storage and amounts required for reactor operation, as described in the Final Safety Analysis Report, as supplemented and amended; (4) HL&P, pursuant to the Act and 10 CFR Parts 30, 40 and 70, to receive, possess, n d use at any time any byproduct, source and special nuclear material as sealed neutron sources for reactor startup, sealed sources for reactor instrumentation and radiation monitoring equipment calibration, and as fission detectors in amounts as required; (5) HL&P, 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 chemi-cal or physical form, for sample analysis or instrument calibra-tion or associated with radioactive apparatus or components; and .
Board of San Antonio (CPS), Central Power and Light Company (CPL),
(6). HL&P, pursuant to the Act and 10 CFR Parts 30, 40 and 70, to possess, but not separate, such byproduct and special nuclear materials as may be produced by the operation of the facility authorized herein.
and the City of Austin, Texas (COA), to possess the facility at the designated location in Matagorda County, Texas, in accordance with the procedures and limitations set forth in this license; HL&P, pursuant to the Act and 10 CFR Part 70, to receive, possess (3) and use at any time special nuclear material as reactor fuel, in accordance with the limitations for storage and amounts required for reactor operation, as described in the Final Safety Analysis Report, as supplemented and amended; (4) HL&P, pursuant to the Act and 10 CFR Parts 30, 40 and 70, to receive, possess, n d use at any time any byproduct, source and special nuclear material as sealed neutron sources for reactor startup, sealed sources for reactor instrumentation and radiation monitoring equipment calibration, and as fission detectors in amounts as required; HL&P, pursuant to the Act and 10 CFR Parts 30, 40 and 70, to (5) receive, possess, and use in amounts as required any byproduct, source or special nuclear material without restriction to chemi-cal or physical form, for sample analysis or instrument calibra-tion or associated with radioactive apparatus or components; and HL&P, pursuant to the Act and 10 CFR Parts 30, 40 and 70, to (6).
C. This license shall be deemed to contain and is subject to the con-ditions specified in the Commission's 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 here-after in effect; and is subject to the additional conditions speci-fied or incorporated below:
possess, but not separate, such byproduct and special nuclear materials as may be produced by the operation of the facility authorized herein.
This license shall be deemed to contain and is subject to the con-C.
ditions specified in the Commission's 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 here-after in effect; and is subject to the additional conditions speci-fied or incorporated below:
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1 (1) Maximum Power Level HL&P is authorized to operate the facility at reactor core power levels not in excess of 3800 megawatts the sal (100% power) in accordance with the conditions specified herein and in Attach-ment 1 to this license. The items identified in Attachment 1 to this license shall be completed as specified. Attachment 1 is hereby incorporated into this license. Pending Commission approval, this license is restricted to reactor core power levels not to exceed 5 percent of full power (190 megawatts thermal);
1.
(2) Technical Specifications and Environmental Protection Plan The Technical Specifications contained in Appendix A and the Environmental Protection Plan contained in Appendix B, both of which are attached hereto, and hereby incc porated into this license. HL&P shall operate the facility in accordance with the Technical Specifications and the Envircnmental Protection Plan.                                                                                 ,
(1) Maximum Power Level HL&P is authorized to operate the facility at reactor core power levels not in excess of 3800 megawatts the sal (100% power) in accordance with the conditions specified herein and in Attach-ment 1 to this license.
The items identified in Attachment 1 to this license shall be completed as specified. Attachment 1 is hereby incorporated into this license. Pending Commission approval, this license is restricted to reactor core power levels not to exceed 5 percent of full power (190 megawatts thermal);
(2) Technical Specifications and Environmental Protection Plan The Technical Specifications contained in Appendix A and the Environmental Protection Plan contained in Appendix B, both of which are attached hereto, and hereby incc porated into this license.
HL&P shall operate the facility in accordance with the Technical Specifications and the Envircnmental Protection Plan.
(3) Antitrust Conditions Houston Lighting and Power Company, City Public Service Board of San Antonio, Central Power and Light Company and City of Austin, Texas shall comply with the antitrust conditions delineated in Appendix C to this license;. Appendix C is hereby incorporated into this license.
(3) Antitrust Conditions Houston Lighting and Power Company, City Public Service Board of San Antonio, Central Power and Light Company and City of Austin, Texas shall comply with the antitrust conditions delineated in Appendix C to this license;. Appendix C is hereby incorporated into this license.
(4) Fire Protection (Section 9.5.1, SER, SSER Nos. 2, 3 and 4)*
(4) Fire Protection (Section 9.5.1, SER, SSER Nos. 2, 3 and 4)*
HL&P shall implement and maintain in effect all provisions of the approved fire protection program as described in the Final                   .
HL&P shall implement and maintain in effect all provisions of the approved fire protection program as described in the Final Safety Analysis Report, and the Fire Protection of Safe l
Safety Analysis Report, and the Fire Protection of Safe l
Shutdown Capability report for the facility, and submittals as l
Shutdown Capability report for the facility, and submittals as l
l approved in the SER (NUREG-0781) dated April 1986 and its Supplements, subject to the following provision:
approved in the SER (NUREG-0781) dated April 1986 and its l
Supplements, subject to the following provision:
The licensee may make changes to the appreved 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.
The licensee may make changes to the appreved 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.
      "The parenthetical notation following the title of many license conditions denotes the section of the Safety Evaluation Report and/cr its supplements wherein the license condition is discussed.
"The parenthetical notation following the title of many license conditions denotes the section of the Safety Evaluation Report and/cr its supplements wherein the license condition is discussed.
i
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'(5)' Physical Security (Section 13.6 SSER No. 3)
                        '(5)' Physical Security (Section 13.6 SSER No. 3)
HL&P shall fully implement and maintain in effect all provisions of the physical 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 10.54(p). The plans, which contain. Safeguards Information protected under 10 CFR 73.71, are entitled: " South Texas Project Electric Generating Station Physical Security Plan," with revisions submitted through March 20, 1987; " South Texas Project Electric Generating Station Security Personnel Qualification and Training Plan,"
HL&P shall fully implement and maintain in effect all provisions of the physical 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 10.54(p). The plans, which contain. Safeguards Information protected under 10 CFR 73.71, are entitled: " South Texas Project Electric Generating Station Physical Security Plan," with revisions submitted through March 20, 1987; " South Texas Project Electric Generating Station Security Personnel Qualification and Training Plan,"
with revisions submitted through March 20, 1987; and " South' Texas Project Electric Generating Station Safeguards Contingency Plan," with revisions submitted through March 29, 1985.
with revisions submitted through March 20, 1987; and " South' Texas Project Electric Generating Station Safeguards Contingency Plan," with revisions submitted through March 29, 1985.
(6) SPOS License Conditions (Section 18. . SSER No. 4 HL&P shall accomplish the following prior to startup from the first refueling outage.:
(6) SPOS License Conditions (Section 18..
SSER No. 4 HL&P shall accomplish the following prior to startup from the first refueling outage.:
(a) Modify the critical safety function displays a) to provide the status of the radioactivity control safety function and b) to continuously display the status boxes that summarize plant safety status.
(a) Modify the critical safety function displays a) to provide the status of the radioactivity control safety function and b) to continuously display the status boxes that summarize plant safety status.
(b) Establish formal mechanisms for controlling system update rates.
(b) Establish formal mechanisms for controlling system update rates.
Line 709: Line 909:
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D. Exemptions 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 provisions of the. Act, and the rules and regulations of the Commission.
D.
>        (1) The facility requires a schedular exemption from the requirements                           The     staff         has of general Design Criterion 4, Appendix A to 10 CFR 50.
Exemptions The following exemptions are authorized by law and will.not endanger life or. property or the common defense and security, and certain special With the granting of these exemptions, the circumstances are present.-
described-in detail in Supplement 4 to the Safety Evaluation Report the technical basis associated with this exemption. The staff's                                                 .
facility will operate, to the extent authorized herein, in conformity with the ~ application, as amended, the provisions of the. Act, and the rules and regulations of the Commission.
environmental assessment was published on Therefore, pursuant to 10 CFR 50.12(a)(1), 10 CFR 50.12(a)(2)(iii) and (iv), The South Texas Project Unit 1, is exempt from the require-ments of General Design Criterion (GOC) 4, Appendix A to 10 CFR 50 with respect to the dynamic' loading effects associated with the postulated pipe breaks described in detail in Section 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 pressurizer surge line, and the accumulator injection lines.. This exemption will expire 6 months following completion of the current GDC-4 rulemaking changes or at the 'end of the second refueling outage, whichever occurs earlier.
The facility requires a schedular exemption from the requirements of (1)
!          (2) The     facility requires a technical exemption from the requirements of 10 CFR 50, Appendix J, Section III.D.2(b)(ii). The' justification of this exemption is contained in Section 6.2.6 of Supplement 3 to the Safety Evaluation Report. The staff's environmental assessment-was published on
The staff has general Design Criterion 4, Appendix A to 10 CFR 50.
                                                                                    . Therefore, pursuant to 10 CFR                       -
described-in detail in Supplement 4 to the Safety Evaluation Report the technical basis associated with this exemption.
50.12(a)(1),10 CFR 50.12(a)(2)(ii) and (iii), The . South Texas I                  Project Unit 1 is exempt from the quoted requirement and instead, is required to perform the overall air lock leak test at pressure P l
The staff's environmental assessment was published on Therefore, pursuant to 10 CFR 50.12(a)(1), 10 CFR 50.12(a)(2)(iii) and (iv), The South Texas Project Unit 1, is exempt from the require-ments of General Design Criterion (GOC) 4, Appendix A to 10 CFR 50 with respect to the dynamic' loading effects associated with the postulated pipe breaks described in detail in Section 3.6.3 of Supplement 4 to the Safety Evaluation Report. These dynamic loading effects include pipe whip, jet impingement, and break-associated Specifically, this eliminates the need to dynamic transients.
prior to establishing containment integrity if air lock maintena$ce has been performed that could affect the air lock sealing capability.
install jet impingement barriers and pipe whip restraints associated with postulated pipe breaks in the pressurizer surge line, and the accumulator injection lines.. This exemption will expire 6 months following completion of the current GDC-4 rulemaking changes or at the 'end of the second refueling outage, whichever occurs earlier.
(3) The     facility requires a schedular exemption from the requirements of General Design Criterion 57, Appendix A to 10 CFR 50. The staff has described in detail in Supplement 4 to the Safety Evaluation Report the technical bases associated with this exemption. The staff's                                           Therefore, environmental assessment was published on                                                       .
The facility requires a technical exemption from the requirements of (2) 10 CFR 50, Appendix J, Section III.D.2(b)(ii). The' justification of this exemption is contained in Section 6.2.6 of Supplement 3 to the Safety Evaluation Report. The staff's environmental assessment-was
pursuant to 10 CFR 50.12(a)(2)(v) the South Texas Project Unit 1 is i
. Therefore, pursuant to 10 CFR published on 50.12(a)(1),10 CFR 50.12(a)(2)(ii) and (iii), The. South Texas Project Unit 1 is exempt from the quoted requirement and instead, is I
exempt from the requirements of GDC-57 applicable to the essential component cooling water (CCW) piping which is also used by the non-essential chilled water system in providng cooling to the Reactor Containment Fan Coolers (RCFC). This exemption will expire at the end of the first refueling outage.
required to perform the overall air lock leak test at pressure P prior to establishing containment integrity if air lock maintena$ce l
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has been performed that could affect the air lock sealing capability.
L..                                         _ - _ _ _ _ _ , _ . _ _ _ _ . . _ _                                _ _ _ _ _ , _ _ _
The facility requires a schedular exemption from the requirements of (3)
General Design Criterion 57, Appendix A to 10 CFR 50. The staff has described in detail in Supplement 4 to the Safety Evaluation Report the technical bases associated with this exemption. The staff's Therefore, environmental assessment was published on pursuant to 10 CFR 50.12(a)(2)(v) the South Texas Project Unit 1 is exempt from the requirements of GDC-57 applicable to the essential i
component cooling water (CCW) piping which is also used by the non-essential chilled water system in providng cooling to the Reactor Containment Fan Coolers (RCFC). This exemption will expire at the end of the first refueling outage.
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(4)  The facility wa's previously granted exemption from the' criticality monitoring requirements of 10 CFR 70.24 (See Materials License No.
The facility wa's previously granted exemption from the' criticality (4) monitoring requirements of 10 CFR 70.24 (See Materials License No.
SNM-1972 dated December 29, 1986 and.Section 9.1.2 of SSER-3). The South Texas Project Unit 1 is hereby exempted from the criticality monitoring provisions of 10 CFR 70.24 as applied to fuel assemblies held under this license.
SNM-1972 dated December 29, 1986 and.Section 9.1.2 of SSER-3). The South Texas Project Unit 1 is hereby exempted from the criticality monitoring provisions of 10 CFR 70.24 as applied to fuel assemblies held under this license.
E. ExceptasotherwiseprovidedintheTechnicalSpecificationsor Environmental Protection Plan, the licensee shall report any vio-lations of the requirements contained in Section 2.C. of this license in the following manner: initial notification shall be made within twenty-four (24) hours to the NRC Operations Center via the Emergency Notification System with written' follow-up within 30 days in accord-ance with the procedures described in 10 CFR 50.73(b), (c), and (e).
ExceptasotherwiseprovidedintheTechnicalSpecificationsor E.
          - F.'  The licensees'sh'all have and maintain financial 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.
Environmental Protection Plan, the licensee shall report any vio-lations of the requirements contained in Section 2.C. of this license in the following manner:
G.- This licensee is effective as of the date of issuance an'd shall expire at midnight on                 , 2027.
initial notification shall be made within twenty-four (24) hours to the NRC Operations Center via the Emergency Notification System with written' follow-up within 30 days in accord-ance with the procedures described in 10 CFR 50.73(b), (c), and (e).
The licensees'sh'all have and maintain financial protection of such
- F.'
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.
G.-
This licensee is effective as of the date of issuance an'd shall expire at midnight on
, 2027.
FOR THE NUCLEAR REGULATORY COMMISSION l
FOR THE NUCLEAR REGULATORY COMMISSION l
Thomas E. Murley, Director.  .
Thomas E. Murley, Director.
Office of Nuclear Reactor Regulation
Office of Nuclear Reactor Regulation


==Enclosures:==
==Enclosures:==
: 1. Attachment 1                                                                  -
: 1.
: 2. Appendix A - Technical Specifications (NUREG-1255)
2.
: 3. Appendix B, Environmental Protection Plan
Appendix A - Technical Specifications (NUREG-1255) 3.
: 4. Appendix C, Antritrust Conditions Date of Issuance:
Appendix B, Environmental Protection Plan 4.
Appendix C, Antritrust Conditions Date of Issuance:


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    ..-                                                                                    ATTACHMENT 1 TO OPERATING LICENSE NO. NPF-71 Prior -to criticality:
ATTACHMENT 1 TO OPERATING LICENSE NO. NPF-71 Prior -to criticality:
: 1.                 Justify to the staff's satisfaction the deviation from TMI Action Plan requirement II.E.4.2 as applied to the Component Cooling Water lines which-provide cooling to the Reactor Coolant Pumps, Reactor Coolant Drain Tank.
1.
Justify to the staff's satisfaction the deviation from TMI Action Plan requirement II.E.4.2 as applied to the Component Cooling Water lines which-provide cooling to the Reactor Coolant Pumps, Reactor Coolant Drain Tank.
Heat Exchanger, and Excess Letdown Heat Exchanger.
Heat Exchanger, and Excess Letdown Heat Exchanger.
: 2.                   Incorporate into the FSAR the commitments on design modifications, and inspections to confirm adequacy thereof, related to the wear of Bottom-Mounted Instrumentation thimbles.
2.
: 3.                   Complete all action's-to the staff's satisfaction on the items related to the Seismic Qualifications Review Team audit documented in Section 3.10.1 of SWR Supplement No. 3.
Incorporate into the FSAR the commitments on design modifications, and inspections to confirm adequacy thereof, related to the wear of Bottom-Mounted Instrumentation thimbles.
: 4.                 Document compliance with 10 CFR 50.49.
3.
: 5.                   Demonstrate adequacy of design with respect to attachment of safety-related components to non-safety-related frames.
Complete all action's-to the staff's satisfaction on the items related to the Seismic Qualifications Review Team audit documented in Section 3.10.1 of SWR Supplement No. 3.
: 6.                   Justify deviations from Regulatory Guide 8.27.
4.
: 7.                   Justify deviations from Regulatory Guide 1.68 with respect to the Loss-of-Offsite-Power Test.
Document compliance with 10 CFR 50.49.
5.
Demonstrate adequacy of design with respect to attachment of safety-related components to non-safety-related frames.
6.
Justify deviations from Regulatory Guide 8.27.
7.
Justify deviations from Regulatory Guide 1.68 with respect to the Loss-of-Offsite-Power Test.
Prior to Full Power Operation:
Prior to Full Power Operation:
,                      1.                   Address to the staff's satisfaction the items resulting -from the SPDS audit conducted by the staff during January 27-30, 1987 and documented in the meeting summary of March 12, 1987.
1.
4 l
Address to the staff's satisfaction the items resulting -from the SPDS audit conducted by the staff during January 27-30, 1987 and documented in the meeting summary of March 12, 1987.
The preoperational tests and testing exceptions identified in the attachment to the {{letter dated|date=May 26, 1987|text=May 26, 1987 letter}} from J. H. Goldberg to the USNRC Document Control Desk shall be ccmplete'd in accordance with the scheduled commitments contained in that attachment.
4 The preoperational tests and testing exceptions identified in the attachment to l
the {{letter dated|date=May 26, 1987|text=May 26, 1987 letter}} from J. H. Goldberg to the USNRC Document Control Desk shall be ccmplete'd in accordance with the scheduled commitments contained in that attachment.
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g                                                                                                                                             CONFORMED-
g CONFORMED-December 1980 LICENSE CONDITIONS FOR SOUTH TEXAS PROJECT UNITS NOS. 1 AND 2 LI.
..                                                                                                                                                  December 1980 LICENSE CONDITIONS FOR SOUTH TEXAS PROJECT UNITS NOS. 1 AND 2 LI.           A.       The following definitions apply to paragraph I.B:
A.
The following definitions apply to paragraph I.B:
(1) " Applicants" means severally and jointly Houston Lighting and Power Company (HLP), Central Power and Light Company (CPL),
(1) " Applicants" means severally and jointly Houston Lighting and Power Company (HLP), Central Power and Light Company (CPL),
City Public Service Board of San Antonio-(CPSB),'and the City of Austin Electric Utility Department (C0A) and any of their respective successors, assignees, or subsidiaries engaged in the generation, transmission or the distribution of electric
City Public Service Board of San Antonio-(CPSB),'and the City of Austin Electric Utility Department (C0A) and any of their respective successors, assignees, or subsidiaries engaged in the generation, transmission or the distribution of electric Where a license condition is directed to a specific power.
'                                                        power. Where a license condition is directed to a specific Applicant, that Applicant is identified.
Applicant, that Applicant is identified.
i                                          (2) " South Texas Area" means (a) those counties in which Appli-cant's serve electric customers at wholesale or retail, and (b) those other areas, if'any, surrounded by the areas in (a) above.
(2) " South Texas Area" means (a) those counties in which Appli-i cant's serve electric customers at wholesale or retail, and (b) those other areas, if'any, surrounded by the areas in (a) above.
f                                          (3) " Entity" means an electric utility which is a person, a private or public corporation, a governmental agency or authority, a municipality, a cooperative, or an association of any of the foregoing owning, operating, or contractually controlling, or proposing in good faith to own, operate, or i
(3) " Entity" means an electric utility which is a person, a f
contractually control facilities for generation, transmission or distribution of electric power and energy for the purpose of providing electric utility service.
private or public corporation, a governmental agency or authority, a municipality, a cooperative, or an association of any of the foregoing owning, operating, or contractually controlling, or proposing in good faith to own, operate, or contractually control facilities for generation, transmission i
(4) " Bulk Power" means the electric power and/or electric energy supplied or made available at transmission or subtransmission l
or distribution of electric power and energy for the purpose of providing electric utility service.
voltages.                                                                                                                  .
" Bulk Power" means the electric power and/or electric energy (4) supplied or made available at transmission or subtransmission l
voltages.
(5) " Costs" means all appropriate operating and maintenance expenses and all ownership costs where applicable.
(5) " Costs" means all appropriate operating and maintenance expenses and all ownership costs where applicable.
(6) The terms " connection" and " interconnection" are used inter-changeably.
(6) The terms " connection" and " interconnection" are used inter-changeably.
B. The Applicants defined in Paragraph I. A.(1) are subject to the following antritrust conditions:
The Applicants defined in Paragraph I. A.(1) are subject to the B.
(1) (a) CPL                       shall afford to the Public Utilities Board of the City of Brownsville an opportunity to participate in the South Texas Projects, Units 1 and 2, on reasonable terms and conditions and in accordance with the South Texas Project Participation Agreement and on a basis that will fully compensate CPL for its actual costs, provided that Appendix C - South Texas 4   . - - - - - , - ,,    e   -  ,    ,~,..--,,-,v             r,w,,r,v,,e       .,,,,--,-,-----.e.e-vm----w,m,sw,,,wr,e-,-.-,,,,,v-           - g rw, ,-,- ~r--,,w-,.,--,-  -
following antritrust conditions:
CPL shall afford to the Public Utilities Board of the (1) (a)
City of Brownsville an opportunity to participate in the South Texas Projects, Units 1 and 2, on reasonable terms and conditions and in accordance with the South Texas Project Participation Agreement and on a basis that will fully compensate CPL for its actual costs, provided that Appendix C - South Texas 4
e
,~,..--,,-,v r,w,,r,v,,e
.,,,,--,-,-----.e.e-vm----w,m,sw,,,wr,e-,-.-,,,,,v-
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~r--,,w-,.,--,-


9 2-Brownsville m'ust enter into a firm commitment to acquire the ownership interest made availatie to it by the terms of this paragraph no later than Ja uary 1,1983. . The ownership interest which CPL shall make available to Brownsville shall .be computed by citiplying CPL's           ~
9 2-Brownsville m'ust enter into a firm commitment to acquire the ownership interest made availatie to it by the terms The of this paragraph no later than Ja uary 1,1983..
Generation Entitlement Share in STP Units 1 and 2 by the ratio of Brownsv111e's peak demand for 1980 to CPL's peak demand for 1980. In the event Brownsville obtains
ownership interest which CPL shall make available to Brownsville shall.be computed by citiplying CPL's Generation Entitlement Share in STP Units 1 and 2 by the
                                                                    'an. ownership interest from any Applicant other than CPL, the ownership interest which CPL sust make available to Brownsville hereunder shall be redaced by one megawait for each megawatt in excess of 12 segawatts that Browns-ville acquires from other Applicants. Applicants shall not exercise any rights of first refusal over Brownsville's efforts to participate in the South Texas Project to the-extent of the first 50 MW of such ownership share.
~
{                                                        (b) CPL                       shall-afford Brownsville reasonable transmission services to enable it to obtain delivery of power from the STP, provided that CPL is fully compensated-for its costs of such transmission services plus a reasonable return on investment,- and provided further that in the i
ratio of Brownsv111e's peak demand for 1980 to CPL's peak demand for 1980.
event transmission capacity is not available to provide such transmission services, the provisions of Paragraph     .
In the event Brownsville obtains
'an. ownership interest from any Applicant other than CPL, the ownership interest which CPL sust make available to Brownsville hereunder shall be redaced by one megawait for each megawatt in excess of 12 segawatts that Browns-Applicants shall ville acquires from other Applicants.
not exercise any rights of first refusal over Brownsville's efforts to participate in the South Texas Project to the-extent of the first 50 MW of such ownership share.
CPL shall-afford Brownsville reasonable transmission
{
(b) services to enable it to obtain delivery of power from the STP, provided that CPL is fully compensated-for its costs of such transmission services plus a reasonable return on investment,- and provided further that in the event transmission capacity is not available to provide such transmission services, the provisions of Paragraph i
I.B.(4) hereof define the extent of the obligation which CPL has with respect to the construction of additional transmission facilities necessary to provide such _trans-mission service.
I.B.(4) hereof define the extent of the obligation which CPL has with respect to the construction of additional transmission facilities necessary to provide such _trans-mission service.
(c) CPL will also afford all reasonable coordination services (including but not limited to reserve sharing, backup
CPL will also afford all reasonable coordination services (c)
                                                                      ' power, maintenance power and emergency power) necessary for Brownsville to have effective access to power from                                                                         ^
(including but not limited to reserve sharing, backup
I STP obtained from CPL, provided that CPL is fully com-pensated for its costs of providing such coordination services plus a reasonable return on investment, i
' power, maintenance power and emergency power) necessary
(d) Each                     Applicant shall facilitate where necessary Browns-ville's obtaining the participation interests and services specified in paragraphs 1(a),1(b), and 1(c) above.
^
L (2) The                 Applicants, as long as they are members of the Texas Interconnected Systems (TIS) or any other organization which considers the planning for or operations of ERCOT-TIS elec-I tric utilities, shall support reasonable requests by Entities in the South Texas Area having generation capacity for member-ship in TIS or such other organizations. The Applicants shall also propose and actively support, as long as they are members thereof, the creation of one or more additional Appendix C - South Texas e ne- ,  ---e         w     -,. -- v-- an,,--   ,,n- , - - - - ,             --,---w---   -,,-.. e--me---,cm_,en   -,-,--<-,-----,n         rs,v,-w ,,,-o,-,- .+ r     ,-w-, r,, e----,,,r,-mvem-   -,
for Brownsville to have effective access to power from STP obtained from CPL, provided that CPL is fully com-I pensated for its costs of providing such coordination services plus a reasonable return on investment, Each Applicant shall facilitate where necessary Browns-i (d) ville's obtaining the participation interests and services specified in paragraphs 1(a),1(b), and 1(c) above.
L The Applicants, as long as they are members of the Texas (2)
Interconnected Systems (TIS) or any other organization which considers the planning for or operations of ERCOT-TIS elec-tric utilities, shall support reasonable requests by Entities I
in the South Texas Area having generation capacity for member-ship in TIS or such other organizations. The Applicants shall also propose and actively support, as long as they are members thereof, the creation of one or more additional Appendix C - South Texas e
ne-
---e w
w r
v--
an,,--
,,n-, - - - -,
--,---w---
e--me---,cm_,en
-,-,--<-,-----,n rs,v,-w
,,,-o,-,-
.+ r
,-w-,
r,,
e----,,,r,-mvem-


s.,                            ,
s.,
classification of TIS membership, based on non-discriminatory criteria to afford access to data, studies and recommendations to all Entities in the South Texas Area who desire membership.
classification of TIS membership, based on non-discriminatory criteria to afford access to data, studies and recommendations to all Entities in the South Texas Area who desire membership.
                                              .The Applicants -shall share information with other Entities
.The Applicants -shall share information with other Entities
                                              - with respect to, and shall conduct with other such Entities-through any electric utility planning organizations of..which the Applicants are members, joint studies and planning of
- with respect to, and shall conduct with other such Entities-through any electric utility planning organizations of..which the Applicants are members, joint studies and planning of future generation, transmission and related facilities; provided, however, that this condition shall not obligate the
'                                              future generation, transmission and related facilities;                   ;
- Applicants to conduct such joint studies or joint planning unless (1) the studies or planning are requested and carried out in good faith and based on reasonably realistic and reasonably complete data or projections, (2) the studies or planning are reasonably justified on the basis of sound engineering principles, (3) appropriate protection is accorded proprietary or other confidential business and financial information, and (4) the costs of such studies or t
provided, however, that this condition shall not obligate the
planning are allocated on a fair and equitable basis.
                                              - Applicants to conduct such joint studies or joint planning unless (1) the studies or planning are requested and carried out in good faith and based on reasonably realistic and reasonably complete data or projections, (2) the studies or planning are reasonably justified on the basis of sound engineering principles, (3) appropriate protection is accorded proprietary or other confidential business and t                                                financial information, and (4) the costs of such studies or planning are allocated on a fair and equitable basis.
(3) Each Applicant shall participate in and facilitate the exchange of bulk power by transmission over its own transmission facilities between or among two or more Entities in the South Texas Area with which the Applicant is connected; and between any such Entity (ies) and any Entity (ies) outside the South Texas Area between whose facilities the Applicant's trans-mission lines and other transmission lines, including direct current (asynchronous) transmission lines, form a continuous electrical path; provided, that (i) permission _to utilize such other transmission lines has been requested by the pro-ponent of the arrangement, (ii) the arrangements reasonably can be accommodated from a functional and technical stand-point, and (iii) any Entity (ies) requesting such transmission arrangements shall have given reasonable advance notice of its (their) schedule and requirements. Such transmission shall be on terms that fully compensate an Applicant for its costs including a reasonable return on investment; provided, however, that such transmission services and the rates to be l
(3) Each Applicant shall participate in and facilitate the exchange of bulk power by transmission over its own transmission facilities between or among two or more Entities in the South
charged therefor shall be subject to the jurisdiction of the appropriate regulatory agency (ies). Where the rates to be l
  '                                              Texas Area with which the Applicant is connected; and between           <
charged are subject to the jurisdiction of an appropriate i
any such Entity (ies) and any Entity (ies) outside the South Texas Area between whose facilities the Applicant's trans-mission lines and other transmission lines, including direct current (asynchronous) transmission lines, form a continuous electrical path; provided, that (i) permission _to utilize
regulatory authority, the Applicants shall not refuse to provide such transmission services merely because the rate (s) to be charged therefor are the subject of dispute with such Entity (ies).
!                                                  such other transmission lines has been requested by the pro-ponent of the arrangement, (ii) the arrangements reasonably can be accommodated from a functional and technical stand-point, and (iii) any Entity (ies) requesting such transmission arrangements shall have given reasonable advance notice of         .
An Applicant shall not be required to enter into any arrangement which would unreasonably impair system reliability or emergency transmission capacity, it being recognized that while some transmission may be operated fully loaded other transmission may be for emergency use and operated either unloaded or partially loaded.
its (their) schedule and requirements. Such transmission shall be on terms that fully compensate an Applicant for its costs including a reasonable return on investment; provided, however, that such transmission services and the rates to be charged therefor shall be subject to the jurisdiction of the l                                                    appropriate regulatory agency (ies). Where the rates to be l
i charged are subject to the jurisdiction of an appropriate regulatory authority, the Applicants shall not refuse to provide such transmission services merely because the rate (s) to be charged therefor are the subject of dispute with such Entity (ies). An Applicant shall not be required to enter into any arrangement which would unreasonably impair system reliability or emergency transmission capacity, it being recognized that while some transmission may be operated fully loaded other transmission may be for emergency use and operated either unloaded or partially loaded.
Appendix C - South Texas 4
Appendix C - South Texas 4
6
6
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,a e,c e, - - -,.,,,a e v.,-,,,,,,,n,
,,,-,,,,-,,,,,,,,,,,,n__-,.-,,,,,,,.,,.,,,-.m,,-,,,,-,,,,,,--m-


l 4
4
<4 (4) Each Applicant shall include in~its planning and construction
<4 (4) Each Applicant shall include in~its planning and construction
                                                                    ~
~
programs sufficient transmission capacity as required for the
programs sufficient transmission capacity as required for the
                                                                      -transactions referred to in paragraph I.B.(3) (and I.B.(5) for CPL), provided any Entity (fes) in the South Texas Area gives an Applicant sufficient advance notice as may be neces--
-transactions referred to in paragraph I.B.(3) (and I.B.(5) for CPL), provided any Entity (fes) in the South Texas Area gives an Applicant sufficient advance notice as may be neces--
              ~
~
sary to accomodate.its (their) requirements'from a functional and technical standpoint and that such Entity (fes) fully compensates an Applicant for its costs including a reasonable return on investment.1/ An Applicant shall not be required to construct transmission facilities if construction of such facilities is infeasible, or if such would unreasonably impair system reliability or emergency transactions capacity.
sary to accomodate.its (their) requirements'from a functional and technical standpoint and that such Entity (fes) fully compensates an Applicant for its costs including a reasonable return on investment.1/ An Applicant shall not be required to construct transmission facilities if construction of such facilities is infeasible, or if such would unreasonably impair system reliability or emergency transactions capacity.
In connection with the performance of the obligations above,-
In connection with the performance of the obligations above,-
an Applicant shall not be foreclosed from requiring a reason-
an Applicant shall not be foreclosed from requiring a reason-able contribution in aid of construction or from making arrangements for coordinated construction of future trans-mission lines such that each of the parties to the trans-action would own an interest in or a segment of the trans-mission addition in proportion to its share of the cost of l
'                                                                      able contribution in aid of construction or from making arrangements for coordinated construction of future trans-mission lines such that each of the parties to the trans-action would own an interest in or a segment of the trans-                 -
the addition.
mission addition in proportion to its share of the cost of l                                                                       the addition. Any such contribution made in aid of construc-
Any such contribution made in aid of construc-tion or ownership interest shall also be properly credited in determining any wheeling charges.
!                                                                      tion or ownership interest shall also be properly credited in determining any wheeling charges. If an Applicant engages in joint ownership of transmission lines with any other Entity (ies),
If an Applicant engages in joint ownership of transmission lines with any other Entity (ies),
it shall not refuse.to engage in similar transactions in comparable circumstances with other Entities, subject to the provisions limiting an Applicant's obligations above.
it shall not refuse.to engage in similar transactions in comparable circumstances with other Entities, subject to the provisions limiting an Applicant's obligations above.
i
i
[                                                               (5) CPL shall, upon reasonable advance- notice, enter into arrange-ments for the sale of full .and partial requirements bulk                                           !
[
power pursuant to a filed tariff to any requesting Entity having a non-aggregated generating capacity of 200 megawatts or less under reasonable terms and conditions which shall                                 -
(5) CPL shall, upon reasonable advance-notice, enter into arrange-ments for the sale of full.and partial requirements bulk power pursuant to a filed tariff to any requesting Entity having a non-aggregated generating capacity of 200 megawatts or less under reasonable terms and conditions which shall include a provision for-CPL to recover its costs of providing such service plus a reasonable return on investment.
include a provision for-CPL to recover its costs of providing such service plus a reasonable return on investment.                         Such tariff shall not require CPL to enter into any arrangement for such sale (s) if (a) it does not have available sufficient bulk power or adequate transmission to provide the requested service; or (b) the sale would impair CPL's ability to render adequate and reliable service to its own customers or its ability to discharge prior commitments.                         It is expressly recognized, and such tariff may reflect, that the determination whether suffi-cient bulk power or adequate transmission is available to accom-modate a request for full or partial requirements bulk power will consider and recognize that (1) CPL will be engaging in y                          Nothing in this paragraph shall require CPSB or COA to undertake any action (s) which may be contrary to any state constitutional provision.
Such tariff shall not require CPL to enter into any arrangement for such sale (s) if (a) it does not have available sufficient bulk power or adequate transmission to provide the requested service; or (b) the sale would impair CPL's ability to render adequate and reliable service to its own customers or its ability to discharge prior commitments.
It is expressly recognized, and such tariff may reflect, that the determination whether suffi-cient bulk power or adequate transmission is available to accom-modate a request for full or partial requirements bulk power will consider and recognize that (1) CPL will be engaging in Nothing in this paragraph shall require CPSB or COA to undertake any y
action (s) which may be contrary to any state constitutional provision.
Appendix C - South Texas
Appendix C - South Texas
    - - .      -,-y,- .--..,-,-y-,,-,.-...m.-.,m.--,.#,                         .. ,- - -,-. - , ,,,.-,......m.,---__..                                   --m.,- ...-..- ,
-,-y,-
.--..,-,-y-,,-,.-...m.-.,m.--,.#,
,,,.-,......m.,---__..
--m.,-


centralized economic dispatch with its affiliates in accord-ance with, and pursuant to the requirements of,.the Public Utility Holding Company Act of 1935, (2) pursuant to such.
centralized economic dispatch with its affiliates in accord-ance with, and pursuant to the requirements of,.the Public Utility Holding Company Act of 1935, (2) pursuant to such.
requirements CPL may first utilize its generating and trans-mission capacity to accomplish such centralized economic dispatch before its generating and tratsmission capacity is made available for full or partial requirements bulk power sales under the tariff, and (3) if other CSW system capacity becomes available by reason of CPL's pa-ticipation in such centralized economic dispatch, then such other CSW system capacity will, at the option of CN, be made available in lieu of CPL's obligation to provide such capacity. Any curtailment of CPL's full or partial requirements sales shall be on a reasonable and non-discrininatory (where possible)
requirements CPL may first utilize its generating and trans-mission capacity to accomplish such centralized economic dispatch before its generating and tratsmission capacity is made available for full or partial requirements bulk power sales under the tariff, and (3) if other CSW system capacity becomes available by reason of CPL's pa-ticipation in such centralized economic dispatch, then such other CSW system capacity will, at the option of CN, be made available in lieu of CPL's obligation to provide such capacity. Any curtailment of CPL's full or partial requirements sales shall be on a reasonable and non-discrininatory (where possible)
                        ~
~
basis.
basis.
(6) (a) In connection with the performance of its obligations herein and subject to the provisions of this paragraph, HLP shall not disconnect from or refuse to connect its then-existing or proposed facilities with the facilities of any Entity used or proposed to be used for the trans-mission of electric energy in interstate commerce by reason of the interstate character of such facilities, and HLP will not prevent any Entity with which it main-tains connections from establishing, maintaining,-modi-fying or utilizing a connection with facilities used or proposed:to be used for the transmission of electric energy in interstate commerce by reason of the inter-state character of such facilities, provided that, anything in these license conditions to the contrary notwithstanding (but subject to s@ paragraph 6(b) and 6(d) below) any Entity seeking to establish, maintain, modify or utilize any connection which could affect the     -
(6) (a) In connection with the performance of its obligations herein and subject to the provisions of this paragraph, HLP shall not disconnect from or refuse to connect its then-existing or proposed facilities with the facilities of any Entity used or proposed to be used for the trans-mission of electric energy in interstate commerce by reason of the interstate character of such facilities, and HLP will not prevent any Entity with which it main-tains connections from establishing, maintaining,-modi-fying or utilizing a connection with facilities used or proposed:to be used for the transmission of electric energy in interstate commerce by reason of the inter-state character of such facilities, provided that, anything in these license conditions to the contrary notwithstanding (but subject to s@ paragraph 6(b) and 6(d) below) any Entity seeking to establish, maintain, modify or utilize any connection which could affect the nonjurisdictional status of HLP under the Federal Power Act shall have filed an application with and used its best efforts to obtain an order from the FERC, applicable to HLP under Section 210, 211 and 212 of such Act, requiring the establishment, maintenance, modification or utilization of such connection. In the event that an Entity files an application pursuant to this subparagraph, HPL agrees that it will not unreasonably oppose any such application.
nonjurisdictional status of HLP under the Federal Power Act shall have filed an application with and used its best efforts to obtain an order from the FERC, applicable to HLP under Section 210, 211 and 212 of such Act, requiring the establishment, maintenance, modification or utilization of such connection. In the event that an Entity files an application pursuant to this subparagraph, HPL agrees that it will not unreasonably oppose any such application. In the event such applicati<.n is denied by a valid order of the FERC, any continuing refusal by HLP to estabish, maintain, modify or utilize such connection with such Entity shall be subject to review by the NRC in accordance with the Atomic Energy Act of 1954, as amended, and the rules and regulations thereunder, to determine whether any such refusal would create or maintain a situation inconsistent with the antitrust l
In the event such applicati<.n is denied by a valid order of the FERC, any continuing refusal by HLP to estabish, maintain, modify or utilize such connection with such Entity shall be subject to review by the NRC in accordance with the Atomic Energy Act of 1954, as amended, and the rules and regulations thereunder, to determine whether any such refusal would create or maintain a situation inconsistent with the antitrust Appendix C - South Texas l
Appendix C - South Texas


o-6-
o 6-laws or the policies thereunder in accordance with the standards set-forth in.Section 105 of such Act; provided that all factual determinations by the FERC on any cost or system reliability reason (s) for any such refusal shall not be subject to redetermination by the NRC.
laws or the policies thereunder in accordance with the standards set-forth in.Section 105 of such Act; provided that all factual determinations by the FERC on any cost or system reliability reason (s) for any such refusal                                                             ,
The l
l shall not be subject to redetermination by the NRC. The l
burden of proof will be on the HLP in such NRC proceeding.
burden of proof will be on the HLP in such NRC proceeding.
(b) HLP shall not enter into or maintain any agreement or understanding with any other Entity (ies) or Applicant to refuse to deal with another Entity (ies) or Applicant (s) with the purpose of maintaining a non-jurisdictional
(b) HLP shall not enter into or maintain any agreement or understanding with any other Entity (ies) or Applicant to refuse to deal with another Entity (ies) or Applicant (s) with the purpose of maintaining a non-jurisdictional
,!                                                                                        - status under the Federal Power Act, and in the event -
- status under the Federal Power Act, and in the event -
that HPL refuses to make an interconnection with or chooses to disconnect from any Entity (ies), such decision and/or action by HLP will be undertaken unilaterally, not jointly, and without consultation with any other -
that HPL refuses to make an interconnection with or chooses to disconnect from any Entity (ies), such decision and/or action by HLP will be undertaken unilaterally, not jointly, and without consultation with any other -
Entity (ies), provided, however,-that after HLP decides to undertake such action, it may notify any affected Entity of its decision.-
Entity (ies), provided, however,-that after HLP decides to undertake such action, it may notify any affected Entity of its decision.-
(c) In the event that an Entity files an application pursuant to subparagraph (a) of this paragraph solely by reason of HLP's desire to maintain its non-jurisdictional status under the Federal Power Act, HLP agrees to pay such Entity's reasonable expenses in connection with such application and the ensuring proceeding, 2/ provided, however, that HLP shall not be required to pay for any expenses of such Entity of that Entity's application is denied by FERC for reasons advocated by HLP at FERC, and l
(c) In the event that an Entity files an application pursuant to subparagraph (a) of this paragraph solely by reason of HLP's desire to maintain its non-jurisdictional status under the Federal Power Act, HLP agrees to pay such Entity's reasonable expenses in connection with such application and the ensuring proceeding, 2/ provided, however, that HLP shall not be required to pay for any expenses of such Entity of that Entity's application is denied by FERC for reasons advocated by HLP at FERC, and l
provided further, that HLP shall not be required to pay l'
provided further, that HLP shall not be required to pay l
for any costs or expenses of such Entity which that Entity would have incurred had it not failed an applica-tion solely by reason of HLP's desire to maintain its                                                         -
for any costs or expenses of such Entity which that Entity would have incurred had it not failed an applica-tion solely by reason of HLP's desire to maintain its non-jurisdictional status under the Federal Power Act.
non-jurisdictional status under the Federal Power Act.
(d) Nothing in these License Conditions shall impair the right of the Department of Justice or any other Entity, public or private, to file an antitrust action in any l
(d) Nothing in these License Conditions shall impair the right of the Department of Justice or any other Entity, l
Federal Court in the event any Applicant refuses to establish, maintain, modify or utilize any connection l
public or private, to file an antitrust action in any Federal Court in the event any Applicant refuses to l
j with any Entity (ies), provided that nothing herein shall preclude any Applicant from raising any legal or equitable f
establish, maintain, modify or utilize any connection j
l defense that may be available to it.
f with any Entity (ies), provided that nothing herein shall preclude any Applicant from raising any legal or equitable l
l This obligation shall not apply to the expenses of Central and South West i
defense that may be available to it.
2/
l i                                  2/            This obligation shall not apply to the expenses of Central and South West Corporation or Texas Utilities Company or any of their respective sub-l                                                 sidiaries, including but not limited to the expenses of CSW and any of l
Corporation or Texas Utilities Company or any of their respective sub-l sidiaries, including but not limited to the expenses of CSW and any of l
its subsidiaries incurred in FERC Docket No. EL79-8.
its subsidiaries incurred in FERC Docket No. EL79-8.
Appendix C - South Texas l
Appendix C - South Texas l
    -,w.-.-       _ . , ,.-. . . _-.w , _ . . , -        . . , - , . . . . _ , , _            ._,,c ,  ,_.,,-y,,,_,myy.,m     ,,,.m., . _ _ . _ ,--,%.,m       _ , , ,, y., _, ,p-w-,,%.,,.m.....-_.
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  .;o\
.;o\\.
(7) 'HLP agrees to use its best efforts to amend any agreements with all Entities to ensure that such agreements are not inconsistent with paragraphs (6)(a)-and (6)(b) hereof.
(7) 'HLP agrees to use its best efforts to amend any agreements with all Entities to ensure that such agreements are not inconsistent with paragraphs (6)(a)-and (6)(b) hereof.
(8) If Applicants participate in any future nuclear units other than those which are now under construction or for which an application for a construction permit has been filed, they will afford similar participation to Entities in the South Texas Area on a reasonable basis.                                                .
(8) If Applicants participate in any future nuclear units other than those which are now under construction or for which an application for a construction permit has been filed, they will afford similar participation to Entities in the South Texas Area on a reasonable basis.
(9) Applicants agree that the reliability of power delivered into TIS-ERCOT over DC asynchronous connections shall not be treated differently by the Applicants, for purposes of spinning and installed reserve calculations and requirements, than would be the case if such power originated with TIS-ERCOT.
(9) Applicants agree that the reliability of power delivered into TIS-ERCOT over DC asynchronous connections shall not be treated differently by the Applicants, for purposes of spinning and installed reserve calculations and requirements, than would be the case if such power originated with TIS-ERCOT.
Outages on DC asynchronous connections shall be treated by the Applicants in the same way as losses of generation within TIS-ERCOT. Applicants agree to support the adoption of
Outages on DC asynchronous connections shall be treated by the Applicants in the same way as losses of generation within TIS-ERCOT. Applicants agree to support the adoption of
                      ~ principles involving DC asynchronous connections contained in this paragraph within any TIS or ERCOST organization.
~ principles involving DC asynchronous connections contained in this paragraph within any TIS or ERCOST organization.
(10) HLP and CPL shall use their best efforts to modify the Offer of Settlement filed in FERC Docket No. EL79-8 to include each of the undertakings set forth in the letter agreement among HLP, Central and South West Corporation, Texas Utilities Company and the FERC staff, dated September 11, 1980. HLP and CPL shall thereafter use their best efforts to secure approval thereof by the FERC, and shall abide by any valid order (s) of the FERC issued purusant to the Offer of Settle-ment. Nothing herein shall preclude the Department of Justice from instituting or intervening in any proceeding at FERC, including Docket No. EL79-8, and from presenting such argu-ments and evidence that it deems appropriate.                         -
(10) HLP and CPL shall use their best efforts to modify the Offer of Settlement filed in FERC Docket No. EL79-8 to include each of the undertakings set forth in the letter agreement among HLP, Central and South West Corporation, Texas Utilities Company and the FERC staff, dated September 11, 1980.
(11) The foregoing conditions shall be implemented (1) in a manner l                       consistent with applicable Federal, state and local statutes j                       and regulations, and (2) subject to any regulatory agency havingjurisdiction. Nothing herein shall preclude the Applicants from seeking an exemption or other relief to which they may be entitled under applicable law or shall be construed as a waiver of their right to contest the applicability of the license conditions with respect to any factual situation.
HLP and CPL shall thereafter use their best efforts to secure approval thereof by the FERC, and shall abide by any valid order (s) of the FERC issued purusant to the Offer of Settle-ment. Nothing herein shall preclude the Department of Justice from instituting or intervening in any proceeding at FERC, including Docket No. EL79-8, and from presenting such argu-ments and evidence that it deems appropriate.
t Appendix C - South Texas l'
(11) The foregoing conditions shall be implemented (1) in a manner l
i a
consistent with applicable Federal, state and local statutes j
_                          _. _ _ _ _ . _ .. .._ , _ _ _ _            _ _ . _ _ _ _ _ _ .}}
and regulations, and (2) subject to any regulatory agency havingjurisdiction.
Nothing herein shall preclude the Applicants from seeking an exemption or other relief to which they may be entitled under applicable law or shall be construed as a waiver of their right to contest the applicability of the license conditions with respect to any factual situation.
t l'
Appendix C - South Texas i
a
.}}

Latest revision as of 23:32, 3 December 2024

Forwards Draft License NPF-71.License Conditions & Exemptions Subj to Finalization of Environ Assessment & Ser. Comments Requested by 870619
ML20214W979
Person / Time
Site: South Texas 
Issue date: 06/11/1987
From: Calvo J
Office of Nuclear Reactor Regulation
To: Partlow J, Rossi C, Shao L
Office of Nuclear Reactor Regulation
References
NUDOCS 8706160279
Download: ML20214W979 (48)
v • d • e


Text

{{#Wiki_filter:_-_ June 11, 1987 Docket No. 50-498 MEMORANDUM FOR: Charles E. Rossi, Director Division of Operational Events Assessment Lawrence Shao, Director Division of Engineering and Systems Technology James G. Partlow, Director Division of Reactor Inspection and Safeguards Frank J. Congel, Director Division of Radiation Protection and Emergency Preparedness Jack W. Roe, Director Division of Licensee Performance and Quality Evaluation FROM: Jose A. Calvo, Director Project Directorate - IV Division of Reactor Projects - III, IV, V and Special Projects

SUBJECT:

REVIEW 0F DRAFT LICENSE FOR LOW POWER OPERATION ON SOUTH TEXAS PROJECT UNIT 1 Enclosed is the subject draft license which is being transmitted for your review and comment. This draft copy does not contain the Technical Specifi-cations, the Environmental Protection Plan and the Indemnity Agreements. The license conditions and exemptions have been identified subject to finali-zation of the Environmental Assessment and the Safety Evaluation Report. shows items which are currently being addressed; resolution on most of them is expected at the time of issuance. Please provide your comments by June 19, 1987 so that the staff can be ready to issue the license in the last week of June if the applicant completes con-struction on schedule. Odginalsi p*id l Jose A. Calvo, Director 8706160279 870611 Project Directorate - IV PDR ADOCK 05000498 Division of Reactor Projects - III, IV A PDR V and Special Projects i CONTACT: N. P. Kadambi, NRR/PD-IV 49-29407 DISTRIBUTION Dochetfile NRC PDR Local PDR PD4 Reading DCrutchfield NPKadambi RPerch PNoopan ( JAcalvo{[g PD4 - MlU PD % PD4 NPKadambi:as PNoonan 6/ \\\\ 87 6/0/87 6/;\\ /87 p /

y- , }# U'llTED STATES NVCLEAR REGULATORY COMMISSION 1 o

WASHINGTON, D. C. 20685 '

-(: { r 4...* !!OUSTON LIGHTING AND POWER COMPANY l CITY PUBLIC SERVICE BOARD OF SAN ANTONIO CENTRAL POWER AND LIGHT COMPANY CITY OF' AUSTIN, TEXAS ' DOCKET NO.'50-498 SOUTH TEXAS PROJECT, UNIT 1 FACILITY OPERATING LICENSE License No. NPF-71' i The Nuclear Regulatory Comission (the Comission or the NRC) has found 1. + that:- The application for a license filed by Houston Lighting and Power A. . Company * (HL&P) acting on behalf of itself and as agent for the City Public Service Board of San Antonio (CPS), Central Power and Light Company (CPL), and City of Austin, Texas (COA) (licensees) complies with the standards and requirements of the Atomic Energy. - Act of-1954, as amended (the Act), and the comission's regulations set forth in 10 CFR Chapter I, and all required notifications to F other agencies or bodies have been duly made; I Construction of the South Texas Project, Unit 1, (the facility) has B. been substantially completed in conformity with Construction Permit No. CPPR-128 and the application, as amended, the provisions of the Act, and the regulations of the Comission; The facility will operate in conformity with the application, as C. amended, the provisions of the Act, and the regulations of the Com-mission, (except as exempted from compliance in Section 2.0. below); There is reasonable assurance: (i) that the activities authorized D. 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 Comission's regulations set forth in 10 CFR Chapter I (except as exempted from compliance in Section 2.D. below); Houston Lighting and Power Company is authorized to act as agent for the City Public Service Board of San Antonio, Central Power and Light Company and City of. Austin, Texas and has exclusive responsibility-and control over the t physical construction, operation and maintenance of the facility. n .em m _.--,,-e-_..--#,, ,.e-... - -. -,.-.%-em -w . m m, m,,,w m3 ,-------w,m,,mw,m-,--_----mmm,m p m-w

I, 2-E. Houston Lighting and Power Company 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; i H. After 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-71, is subject to the conditions for pro-tection of the environment set forth in the Environmental Protec-tion Plan attached as Appendix B, is in accordance with 10 CFR r Part 51 of the Commission's regulations and all applicable require-i ments have been satisfied; and I. The receipt, possession, and use of source, byproduct and special nuclear material as authorized by this license will be in accord-ance with the Commission's regulations in 10 CFR Parts 30, 40 and 70. 2. Based on the foregoing. findings and the Partial Initial Decision (Opera-ting License) (Phases II/III), dated June 13, 1986 and the Partial Initial Decision (Authorizing Operating Licenses), dated August 29, 1986 by the e Atomic and Safety Licensing Board regarding this facility, Facility i_ Operating License No. NFP-71, is hereby issued to Houston Lighting and Power Company, City Public Service Board of San-Antonio, Central Power and Light. Company, and City of Austin, Texas (the licensees) to read as follows: A.. This license applies to the South Texas Project, Unit 1, a pres-surized water reactor, and associated equipment (the facility) owned by Housi.on Lighting and Power Company, City Public Service Board of San Antonio, Central Power and Light Company and City of Austin, Texas. The facility is located in Matagorda County, Texas, west of the Colorado River, 8 miles north-northwest of the town of Matagorda and about 89 miles southwest of Houston and is described in the licensees' Final Safety Analysis Report, as supplemented and amended, and in the licensee's Environmental Report, as supplemented and amended; I b ,, = 2 --=...-,--,~.-.r.-. .,----,,.-.-e-,

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7_ s f.- i 3 s Subjecttotheconditionsandrequirementsincorporatedherein,the ~ B. Commission hereby licenses: Houston Lighting and Power Corpany (HL&P) pursuant to, (1)_ Section 103 of the Act and 10 CFR Part 50, to possess, use/ and operate the facility at the designated location in .Matagorda County, Texas, in accordance with the procedures 1 and limitations. set forth in this license-Pursuant:to the Act and 10 CFR Part 50, the City Public Service (2) Board of San Antonio (CPS), Central Power and Light Company (CPL), and the City of Austin, Texas (COA), to possess the facility at the designated location in Matagorda. County, Texas, in accordance with the procedures and limitations set forth in this license; ~ HL&P,' pursuant to the Act and 10 CFR Part 70, to receive, possess (3) -and use at any time special nuclear material as reactor fuel, .in:accordance with the limitations for storage and ainounts required for reactor operation, as described in the Final-Safety' Analysis Report, as supplemented and amended;. HL&P, pursuant to the Act and 10 CFR Parts 30, 40'and 70, to (4) receive, possess, and use at any time any byproduct, source and special nuclear material as sealed neutron sources for reactor startup, sealed sources for reactor instrumentation and; radiation monitoring equipment calibration, and as fission detectors in amounts as required; HL&P, pursuant to the Act and 10 CFR Parts 30, 40 and 70, to l (5) receive, possess, and use in amounts as' required any byproduct, L source or special nuclear material without restriction to chemi-cal gr physical form, for sample analysis or instrument calibra-tionfor associated with radioactive apparatus or components; and to ? (6). HL&P, pursuant to the Act and 10 CFR Parts 30, 40 and 70, lear possess, but not separate,ysuch byproduct and special nuc E materials as may be produced by the operation of the' facility L authorized'herein. This license shall be deemed to contain and is subject to the con-C. ditions specified in the Commission's regulations set forth in 10 CFR Chapter I and is subject to all appitcable provisions of the Act and to the rules, regulations and orders of the Commission now or here-after in effect; and is subject to the additional conditions speci-fled or incorporated below: s b [ 4 p M 8 =g rwe w ,nr-- --w,y -,-.,,-o----e-r-,.~y-- .,-et -,--v--, r 5-,-* e-.- m---,~ -rm----,,, %-/-,,--.m, - - J

~ I fe - 3 (1) Maximum Power Level-HL&P is authorized-to operate the' facility at-reactor core power levels not in excess of 3800 megawatts the mal (100% power) in accordance with the conditions specified herein' and in Attach-ment 1 to this license. The items: identified in Attachment 1 to this license shall be completed as specified. Attachment 1 is hereby incorporated into this license. Pending Commission e approval, this license is: restricted to reactor core power levels not to exceed 5 percent of full power (190 megawatts thermal); (2) Technical Specifications and Environmental Protection Plan The.Technica1' Specifications contained in Appendix A and the Environmental Protection Plan contained in Appendix B, both of which are' attached hereto, and hereby incorporated into this license. HL&P shall operate the facility in accordance with the Technical Specifications and.the Envircnmental Protection Plan. .(3) Antitrust Conditions ~ Houston Lighting and Power Company, City Public Service Board of San Antonio, Central Power and Light Company and City of Austin, Texas shall comply with the antitrust conditions delineated in . Appendix C to this license; fippendix C is hereby incorporated i .into this license. (4) Fire Protection (Section 9.5.1, SER, SSER Nos. 2, 3 and 4)* ~ HL&P shall implement and maintain in effect all provisions of the approved fire protection program as ' described in the Final Safety Analysis Report, and the Fire Protection of Safe Shutdown Capability report for the facility, and submittals as o approved in the SER (NUREG-0781) dated April 1986 and its Supplements, subject to the following provision: The licensee may make changes to the apprcved fire protection program without prior approval of the Consission, only if those changes would not adversely affect the ability to achieve and l I maintain safe shutdown in the event of a fire. "The parenthetical notation following the title of many license conditions denotes the section of the Safety Evaluation Report and/cr its supplements wherein the license condition is discussed. l i. I t . -,. ~., -..,.,, *.. --.m..,m,_ ,e v, m.,.,-,, .,,--.wm-,-,,,,,,,.,, -,, ,--,y,--,, e,= w..,_,, n.....w,,-w w.m,e m e-t-v er r

.O: # '(5) Physical Security (Section 13.6, SSER No. 3) ~ HL&P shall; fully implement and maintain in effect'all provisions of the physical security, guard training and qualification, and safeguards contingency plans previously approved by the Commission - and all amendments and revisions to such plans r.ade pursuant to the authority of 10 CFR 50.90 and 10 CFR 10.54(p). The plans, which contain Safeguards Information protected under.10 CFR 73.71, are entitled: " South-Texas Project Electric Generating Station Physical Security Plan," with revisions submitted through March 20,1987; " South Texas Project Electric Generating Station Security Personnel Qualification and Training Plan," with revisions submitted through March 20, 1987; and " South Texas Project Electric Generating Station Safeguards Contingency Plan," with revisions submitted through March 29, 1985. (6) SPDS License Conditions (Section 18.. SSER No. 4 HL&P shall accomplish the following prior to startup from the first refueling outage.: (a) Modify the critical safety function displays a) to provide the status of the radioactivity control safety function and b) to continuously display the status boxes that summarize plant safety status. (b) Establish formal mechanisms for controlling system update rates. (c) Investigate and correct excessive display generation times - those greater than 10 seconds. (d) Develop a program and implement procedures for controlling SPDS software and data base changes. (e) Document the process used to verify that the SPDS system requirements are complete and that this process of veriff-cation is independent of the design process. (7) Supplementary Containment Purge Isolation (Section 11.5 SSER No. 4) HL&P shall provide, prior to startup from the first refueling outage, control room indication of the normal and supplemental containment purge sample line isolation valve position. (8) Main Cooling Reservoir (Section 2.5.7, SSER No. 2) HL&P shall complete remedial work on the reservoir embankment before the water level is increased substantially over 35 ft. ms1.

j . a 3 D. Exemptions. The following. exemptions are authorized by law and will not endanger life. l or. property or the common defense and secarity, and certain special With the granting of these exemptions, the circumstances are present. facility will operate, to the extent authorized herein, in conformity with.the application, as amended, the provisions of the Act, and the rules and regulations of the Commission. I t 1 The facility requires a schedular exemption from the requirements of i: (1) The staff has general Design Criterion 4, Appendix A to 10 CFR 50. described in detail in Supplement 4 to the Safety Evaluation Report the technical basis associated with this exemption. The staff's-L environmental assessment was published on Therefore, pursuant to 10 CFR 50.12(a)(1),10 CFR 50.12(a)(2)(iii) and (iv), The South Texas Project Unit 1, is exempt from the require-ments of General Design Criterion (GDC) 4, Appendix A to 10 CFR 50 with respect to. the dynamic loading effects associated with the postulated pipe breaks described in detail in Section 3.6.3 of These dynamic loading -Supplement 4 to the Safety Evaluation Report. effects include pipe whip, jet impingement, and break-associated Specifically, this eliminates the need to dynamic transients. install jet impingement barriers and pipe whip restraints associated with postulated pipe breaks in the pressurizer surge line, and the accumulator injection lines. This exemption will expire 6 months following completion of the current GDC-4 rulemaking changes or at the end of the second refueling outage, whichever occurs earlier. The facility requires a technical exemption from the requirements of (2) 10 CFR 50, Appendix J, Section III.D.2(b)(ii). The justification of this exemption is contained in Section 6.2.6 of Supplement 3 to the Safety Evaluation Report.- The staff's environmental assessment was Therefore, pursuant to 10 CFR published on 50.12(a)(1),10 CFR 50.12(a)(2)(li) and (iii), The South Texas Project Unit 1 is exempt from the quoted requirement and instead, is required to perform the overall air lock leak test at pressure P prior to-establishing containment integrity if air lock maintena$ce has been performed that could affect the air lock sealing capability. The facility requires a schedular exemption from the requirements of (3) General Design Criterion 57, Appendix A to 10 CFR 50. The staff has described in detail in Supplement 4 to the Safety Evaluation Report the technical bases associated with this exemption. The staff's Therefore, environmental assessment was published on pursuant to 10 CFR 50.12(a)(2)(v) the South Texas Project Unit 1 is exempt from the requirements of GDC-57 applicable to the essential component cooling water (CCW) piping which is also used by the non-essential chilled water system in providng cooling to the Reactor containment Fan Coolers (RCFC). This exemption will expire at the i end of the first refueling outage. e l

l The facility was previously granted exemption from the criticality (4) monitoring requirements of 10 CFR 70.24 (See Materials License No. SNM-1972 dated December 29, 1986 and Section 9.1.2 of SSER-3). The South Texas Project Unit 1 is hereby exempted from the criticality monitoring provisions of 10 CFR 70.24 as applied to fuel assemblies held under this license. Except as otherwise provided in the Technical Specifications or E. Environmental Protection Plan, the licensee shall report any vio-lations of the requirements contained in Section 2.C. of this. license in the following manner: initia1' notification shall be made within twenty-four (24) hours to the NRC Operations Center via the Emergency Notification System with written follow-up within 30 days in accord-ance with the procedures described in 10 CFR 50.73(b), (c), and (e). The licensees-shall have and maintain financial protection of such F. type and in such amounts as the Commission shall require in accordance 4 with Section 170 of the Atomic Energy Act of 1954, as amended, to cover public liability claims. G. This licensee is effective as of the date of issuance and shall expire at midnight on , 2027. FOR THE NUCLEAR REGULATORY COMMISSION Thomas E. Murley, Director Office of Nuclear Reactor Regulation

Enclosures:

1.

2. Appendix A - Technical Specifications (NUREG-1255) 3. Appendix B, Environmental Protection Plan 4. Appendix C, Antritrust Conditions Date of Issuance: J e ,r._

F ?. ATTACHMENT 1 TO OPERATING LICENSE NO. NPF-71 . s 1 Prior to criticality: 1. Justify to the staff's satisfaction the deviation from TMI Action Plan requirement II.E.4.2 as applied to.the Component Cooling Water lines which provide cooling to the Reactor Coolant Pumps, Reactcr Coolant Drain Tank Heat Exchanger, and Excess Letdown Heat Exchanger. 2. . Incorporate into the FSAR.the commitments on design nodifications, and inspections to confirm adequacy thereof, related to the wear of Bottom-Mounted Instrumentation thimbles. 3. -Complete all actions to the staff's satisfaction on the' items related to the Seismic Qualifications Review Team audit documented in Section 3.10.1 of SWR Supplement No. 3. 4. Document compliance with 10 CFR 50.49. 5. Demonstrate-adequacy of design with respect to attachment of safety-related components to non-safety-related frames. 6. Justify deviations from Regulatory Guide 8.27. 7. Justify deviations from Regulatory Guide 1.68 with respect to the. Loss-of-Offsite-Power Test. Prior-to Full Power Operation: l 1. Address to the staff's satisfaction the items resulting from the SPDS l audit conducted by the staff during January 27-30, 1987 and documented in the meeting summary of March 12, 1987. The preoperational tests and testing exceptions identified in the attachment to the May 26, 1987 letter from J. H. Goldberg to the USNRC Document Control Desk ~ shall be completed in accordance with the scheduled commitments contained in that attachment. i i i l t 6 e u -,,,,,pe, --w,, -.m,- ,n_.,,,,,-w,w-,,.,,,,y.m.,. ,,y,,,,.,, -,,,,.,,,,,,wnn,n,e , _ -, ~,, - - -,,eg,.,,,__ _.w,- -,, ,,,eme-e.-, ,.,,,..na---

CONFORMED 3- - December 1980 LICENSE CONDITIONS FOR SOUTH TEXAS PROJECT 4 c UNITS NOS 1 AND 2 7 3 The following definitions apply to paragraph I'.'B: -I. A. jointly Houston Lighting and " Applicants" means severally and (1) Power Company (HLP),. Central Power and. Light Company (CPL), City Public Service Board of San Antonio (CPSB),.and the City of Austin' Electric Utility Department (COA) and any of their ~ respective successors, assignees, or subsidiaries engaged in-the generation, transmission or the distribution of electric Where a license condition is directed to a specific power. Applicant, that Applicant is ' identified. " South Texas Area" means (a) those counties in which Appli-(2) cant's serve electric customers at wholesale or retail, and-(b) those other areas, if any, surrounded by the areas in (a) above. (3) " Entity" means= an electric utility which is a person, a l private or public corporation, a governmental agency or authority, a municipality, a cooperative, or an association of any of the foregoing owning, operating, or contractually controlling, or proposing in good-faith to own, operate, or contractually control facilities for generation, transmission or distribution of electric power and energy for the purpose of providing electric utility service. (4) " Bulk Power" means the electric power and/or electric energy supplied or made available at transmission or subtransmission 1 voltages. " Costs" means all appropriate operating and maintenance i (5) expenses and all ownership costs where applicable. (6) The terms " connection" and " interconnection" are used inter-changeably. The Applicants defined in Paragraph I. A.(1) are subject to the B. following antritrust conditions: i CPL shall afford to the Public Utilities Board of the (1) (a) City of Brownsville an opportunity to participate in the South Texas Projects, Units 1 and 2, on reasonable terms and conditions and in accordance with the South Texas Project Participation Agreement and on a basis that will fully compensate CPL for its actual costs, provided that l Appendix C - South Texas y w-e co,,,-ave-,,,,v.,,,,--w-,,~--e,,,,,,e ,r,c--,- ,-,wn-,, ,--n,--,-,.e-emwn--- m,,,.-,,,,,-.n--:m--,,--m.n-----,venaw-,--,r,--,.,---n

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Brownsville must enter _into a firs commitment ~ to acquire the ownership interest made available to it by the terms-of this paragraph no later than ~Ja uary 1,1983. The ownership interest which CPL shall make available sto Brownsville shall be computed by cultiplying CPL's - e Generation Entitlement Share in STP Units 1 and 2 by the

ratio of Brownsville's peak demand for 1980 to CPL's peak demand for 1980.

In the event Brownsville. obtains an ownership interest from any Applicant other than CPL, the ownership interest which CPL sast make available to Brownsville hereunder shall be reduced by one megawatt for each megawatt in excess of 12 megawatts that Browns-ville acquires from other Applicants. Applicants shall not exercise any rights of first refusal over Brownsville's efforts to participate in the South Texas Project to the - extent of the first 50 MW of such ownership share.- CPL shall afford Brownsville reasonable transmission (b) services to enable it to obtain delivery of power from the STP,'provided that CPL is fully compensated for its costs of such transmission services plus a reasonable return on investment, and provided further that in the event transmission capacity is not available to provide such transmission services, the provisions of Paragraph I.B.(4) hereof define the extent of'the obligation which CPL has with respect to'the construction of additional transmission facilities necessary to provide such trans-mission service. (c) CPL will also afford all reasonable coordination services (including but not limited to reserve-sharing, backup power, maintenance power and emergency power) necessary for Brownsville to have effective access to power from STP obtained from CPL, provided that CPL is fully cca-pensated for its costs of providing such coordination services plus a reasonable return on investment. Each Applicant shall facilitate where necessary Browns- [ (d) ville's obtaining the participation interests and services i specified in paragraphs 1(a),1(b), and 1(c) above. The Applicants, as long as they are members of the Texas (2) Interconnected Systems (TIS) or any other organization which p considers the planning for or operations of ERCOT-TIS elec-tric utilities, shall support reasonable requests by Entities l in the South Texas Area having generation capacity for member-ship in TIS or such other organizations. The Applicants 4 shall also propose and actively support, as long as they are members thereof, the creation of one or more additional i 4 Appendix C - South Texas -ew,u v, er w n,.m -e nn, ,,,----w,,.-w- <,-w--,r w,me ,,,,w+,,-. ,an- ,,,-,ew -,,m.a --,,-w ,--w.rnwr..-~..:-e,,-,, . - ~, --w-,

N,. 40. classification of TIS membership, based on non-discriminatory criteria to afford access to data, studies and recommendations - to all Entities in the South. Texas Area who desire membership. The Applicants shall share information with other Entities with respect to, and shall conduct with other such Entities through any electric utility planning organizations of which i the Applicants are members, joint studies and planning of

future generation, transmission and related facilities;

.provided, however, that this condition shall not obligate the Applicants to conduct such joint studies or joint planning-unless (1) the studies or planning are requested and carried out in good faith and based on reasonably realistic and-reasonably complete data or projections, (2) the studies or planning are reasonably justified on the basis of sound engineering principles, (3) appropriate protection is accorded proprietary or other confidential business and financial information, and (4) the costs of such studies or planning are allocated on a fair and equitable basis. (3) Each Applicant shall participate in and facilitate the exchange of bulk power by transmission over its own transmission facilities between or among two or more Entities in the South Texas Area with which the Applicant is connected; and between t E any such Entity (ies) and any Entity (ies) outside the South Texas-Area between whose facilities the Applicant's trans-mission lines and other transmission lines, including direct current (asynchronous) transmission lines, form a continuous electrical path; provided, that (i) permission to utilize l= such other transmission lines has been requested by the pro-I ponent of the arrangement, (ii) the arrangements reasonably l can be accommodated from a functional and technical stand-point, and (iii) any Entity (ies) requesting such transmission l arrangements shall have 'given reasonable advance notice of -its (their) schedule and requirements. Such transmission shall be on terms that fully compensate an Applicant for its costs including a reasonable return on investment; provided, however, that such transmission services and the rates to be charged therefor shall be subject to the jurisdiction of the appropriate regulatory agency (ies). Where the rates to be charged are subject to the jurisdiction of an appropriate regulatory authority, the Applicants shall not refuse to provide such transmission services merely because the rate (s) to be charged therefor are the subject of dispute with such Entity (ies). An Applicant shall not be required to enter into any arrangement which would unreasonably impair system reliability or emergency transmission capacity, it being recognized that while some transmission may be operated fully loaded other transmission may be for emergency use and operated either unloaded or partially loaded. Appendix C - South Texas 6

. 4- '(4) -Each Applicant shall include in its planning and construction programs sufficient transmission capacity as required for the transactions referred to in paragraph I.B.(3) (and I.B.(5) for CPL), provided any Entity (ies) in the South Texas Area-gives an Applicant sufficient advance notice as may be neces-sary to accomodate its (their) requirements from a functional and technical standpoint and that such Entity (ies) fully. compensates an Applicant for its costs including a. reasonable return on investment.1/ An Applicant shall not be_ required i -to construct transmission facilities if construction of_ such facilities is infeasible, or if such would unreasonably l impair system reliability or emergency transactions capacity. ~In connection with the performance of the obligations above, l an Applicant shall not be foreclosed from requiring a reason-able contribution in aid of construction or from_ making l arrangements for coordinated construction of future trans-mission lines such that each of the parties to the trans-action would own an interest in or a segment of the trans-mission addition in proportion to its share of the cost of the addition. Any such contribution made in aid of construc-tion or ownership interest shall also be properly credited in determining any wheeling charges. If.an Applicant engages in joint ownership of transmission lines with any other Entity (ies), .it shall not refuse to engage in similar transactions in comparable circumstances with other Entities, subject to the provisions limiting an Applicant's obligations above. f (5) CPL shall, upon reasonable advance notice, enter into arrange-ments for the sale of full and partial requirements bulk power pursuant to a filed tariff to any requesting Entity having a non-aggregated generating capacity of 200 megawatts or less under reasonable terms-and conditions which shall include a provision for CPL to recover its costs of providing such service plus a reasonable return on investment. Such tariff shall not require CPL to enter into any arrangement for such sale (s) if (a) it does not have available sufficient bulk power or adequate transmission to provide the requested service; or (b) the sale would impair CPL's ability to render adequate .and reliable service to its own customers or its ability to l discharge prior commitments. It is expressly recognized, and such tariff may reflect, that the determination whether suffi-cient bulk power or adequate transmission is available to accom-modate a request for full or partial requirements bulk power will consider and recognize that (1) CPL will be engaging in -1/ Nothing in this paragraph shall require CPSB or C0A to undertake any action (s) which may be contrary to any state constitutional provision. Appendix C - South Texas

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s + 4 ~ Jh.. centralized economic dispatch with its affiliates in accord-ance with, and pursuant to the requirements of, the Public Utility Holding Company Act of 1935, (2) pursuant to such- - requirements CPL may first utilize its generating and trans-mission capacity to accomplish such cer,tralized economic dispatch before its generating and trar.smission capacity is made available for full or partial requirements bulk power sales under the tariff, and (3) if other CSW system capacity becomes available by reason of CPL's padicipation in such centralized economic dispatch, then such other CSW system capacity will, at the option of CSW, be made available in lieu of CPL's obligation to provide such capacity. Any. curtailment of CPL s full or partial requirements ~ sales shall be on a reasonable and non-discriminatory (where possible) basis.. (6) (a) In connection with the performance of its obligations herein and subject to the provisions of this paragraph, HLP shall not disconnect from or refuse to connect its then-existing or proposed facilities with the facilities of any Entity used or proposed to be used for the trans-mission of electric energy in interstate commerce by reason of the interstate character of such facilities, and HLP will not prevent any Entity with which it main-tains connections from establishing, maintaining, modi-fying or utilizing a connection with facilities used or proposed to be used for the transsission of electric energy in interstate commerce by reason of the inter-state character of such facilities, provided that, anything in these license conditicas to the contrary notwithstanding (but subject to stbparagraph 6(b) and 6(d) below) any Entity seeking ~to establish, maintain, i modify or utilize any connection which could affect the nonjurisdictional status of HLP under the Federal Power ( Act shall have filed an application with and used its L best efforts to obtain an order from the FERC, applicable ( to HLP under Section 210, 211 and 212 of such Act, requiring tne establishment, maintenance, modification or utilization of such connection. In the event that an Entity files an application pursuant to this subparagraph, HPL agrees that it will not unreasonably oppose any such application. In the event such application is denied by a valid order of the FERC, any continuing refusal by HLP to estabish, maintain, modify or utilize such connection with such Entity shall be subject to review by the NRC in accordance with the Atomic Energy Act of 1954, as amended, and the rules and regulations thereunder, to determine whether any such refusal would create or maintain a situation inconsistent with the antitrust I Appendix C - South Texas

w laws or the policies thereunder in accordance with the standards set forth in Section 105 of such Act; provided i that all factual determinations by the FERC on any cost or system reliability reason (s) for any such refusal shall-not be~ subject to redetermination by the NRC. The burden of proof will be on the HLP in such NRC proceeding. (b) HLP shall not enter into or maintain any agreement or understanding with any other Entity (ies) or Applicant to r refuse to deal with another Entity (ies) or-Applicant (s) with the purpose of maintaining a non-jurisdictional status under-the Federal Power Act, and in the event ' that HPL refuses to make an interconnection with or - chooses to disconnect from any Entity (ies), such decision and/or action by HLP will be undertaken unilaterally, i not jointly,-and without consultation with any other Entity (ies), provided, however, that after HLP decides to undertake such action, it may notify any affected Entity of its decision. (c) In the event that an Entity files an application pursuant to subparagraph (a) of this paragraph solely by reason of HLP's desire to maintain its non-jurisdictional status under the Federal Power Act, HLP agrees to pay such Entity's reasonable expenses in connection with such application'and the ensuring proceeding, 2/ provided, however, that HLP shall not be required to pay for any expenses of such Entity of that Entity's application is denied by FERC for reasons advocated by HLP at FERC, and provided further, that HLP shall not be required to pay for any costs or expenses of such Entity which that Entity would have incurred had it not failed an applica-I ~ tion solely by reason of HLP's desire to maintain its non-jurisdictional status under the Federal Power Act. Nothing in these License Conditions shall impair the (d) right of the Department of Justice or any other Entity, i. public or private, to file an antitrust action in any Federal Court in the event any Applicant refuses to establish, maintain, modify or utilize any connection with any Entity (ies), provided that nothing herein shall-preclude any Applicant from raising any legal or equitable defense that may be available to it. This obligation shall not apply to the expenses of Central and South West 2/ Corporation or Texas Utilities Company or any of their respective sub-sidiaries, including but not limited to the expenses of CSW and any of its subsidiaries incurred in FERC Docket No. EL79-8. Appendix C - South Texas ~ e ~e- ,m e,-m-<.m.,-mn.,n_eme----,..,.e_.,-,ww,,,,,.,,n.,,n-.,,--n,--,--- a.,,,s.. -.~,,m-a-,,,,,,. ,,-..a.,,----,w.---.new

L4 7-(7) HLP agrees to use its best efforts to amend any_ agreements with all Entities to ensure that such agreements are not inconsistent with paragraphs (6)(a) and (6)(b) hereof. (8) If Applicants' participate in any future nuclear-units other than those which are now under construction or-for which an application forLa construction permit has been filed,-they will afford similar participation to Entities in the South Texas Area on a reasonable basis. r (9)- Applicants agree that the reliability of power delivered -into TIS-ERCOT over DC asynchronous connections shall not be ' treated differently by the Applicants, for purposes of spinning and installed reserve calculations and requirements, than would be the case if such power originated with TIS-ERCOT. Outages on DC asynchronous connections shall be treated by the Applicants in the same way as losses of generation within TIS-ERCOT. Applicants agree to support the' adoption of principles involving DC asynchronous connections contained in this paragraph within any TIS or ERCOST organization. (10) HLP and CPL shall use their best efforts to modify the Offer of Settlement filed in FERC Docket No. EL79-8 to include 4 each of the undertakings set forth in the letter agreement among HLP, Central and South West Corporation, Texas Utilities Company and the FERC staff, dated September 11, 1980. HLP and CPL shall thereafter use their best efforts to secure approval thereof by the FERC, and shall abide by any valid order (s) of the FERC issued purusant to the Offer of Settle-ment. Nothing herein shall preclude the Department of Justice from instituting or intervening in any proceeding at FERC, including Docket No. EL79-8, and from presenting such argu-l ments and evidence that it deems appropriate. i l l (11) The foregoing conditions shall be implemented (1) in a manner consistent with applicable Federal, state and local statutes and regulations, and (2) subject to any regulatory agency j: having jurisdiction. Nothing herein shall preclude the Applicants from seeking an exemption or other relief to which i l they may be entitled under applicable law or shall be construed j as a waiver of their right to contest the applicability of the license conditions with respect to any factual situation. l Appendix C - South Texas 1 .,----*-r -,v-m.- e .,,-n,vy. .-.m w-,,. ,-n n % % ,,,,m,.cem , c- ,,%,,,,,,-.m..--vr- , -...ww.y,m--3w-,,,,,yy--+

June 11,1987 r Docket No. 50-498 MEMORANDUM FOR: Charles E. Rossi, Director Division of Operational Events Assessment Lawrence Shao, Director -Division of Engineering and Systems Technology James G. Partlow, Director Division of Reactor Inspection and Safeguards Frank J. Congel, Director Division of Radiation Protection and Emergency Preparedness Jack W. Roe, Director Division of Licensee Performance and Quality Evaluation FROM: Jose A. Calvo, Director Project Directorate - IV Division of Reactor Projects - III, IV, V and Special Projects

SUBJECT:

REVIEW OF DRAFT LICENSE FOR LOW POWER OPERATION ON SOUTH TEXAS PROJECT UNIT 1 Enclosed is the subject draft license which is being transmitted for your review and comment. This draft copy does not contain the Technical Specifi-cations, the Environmental Protection Plan and the Indemnity Agreements. The license conditions and exemptions have been identified subject to finali-zation of the Environmental Assessment and the Safety Evaluation Report. shows items which are currently being addressed; resolution on most of them is expected at the time of issuance. ~ Please provide your comments by June 19, 1987 so that the staff can be ready to issue the license in the last week of June if the applicant completes con-struction on schedule. Odgtnet signedd b M4 c~ Jose A. Calvo, Director Project Directorate - IV Division of Reactor Projects - III, IV V and Special Projects CONTACT: N. P. Kadambi, NRR/PD-IV 49-29407 DISTRIBUTION Docket File NRC PDR

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  1. y NUCLEAR REGULATORY COMMISSION WASHINGTON. D. C. 20056 y -{

\\e...* HOUSTON LIGHTING AND POWER COMPANY CITY PUBLIC SERVICE BOARD OF SAN ANTONIO CENTRAL POWER AND LIGHT COMPANY CITY OF AUSTIN, TEXAS DOCKET NO. 50-498 SOUTH TEXAS PROJECT, UNIT 1 ~ FACILITY OPERATING LICENSE License No. NPF-71 1. The Nuclear Regulatory Comission (the Comission or the NRC) has found that: A. The application for a license filed by Houston Lighting and Power Company * (HL&P) acting on behalf of itself and as agent for the City Public Service Board of San Antonio (CPS), Central Power and Light Company (CPL), and City of Austin, Texas (C0A) (licensees) complies with the standards and requirements of the Atomic Energy Act of 1954, as amended (the Act), and the Comission's 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 South Texas Project, Unit 1, (the facility) has been substantially completed in conformity with Construction Permit No. CPPR-128 and 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 Com-mission, (except as exempted from compliance in Section 2.0. below); D. There is reasonable assurance: (1) 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 Comission's regulations set forth in 10 CFR Chapter I (except as exempted from compliance in Section 2.D. below); Houston Lighting and Power Company is authorized to act as agent for the City Public Service Board of San Antonio, Central Power and Light Company and City of Austin, Texas and has exclusive responsibility and control over the physical-construction, operation and maintenance of the facility.

~. - ' 2-E. Houston Lighting and Power. Company 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. After 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-71, is subject to the conditions for pro-tection of the environment set forth in the Environmental Protec-tion Plan attached as Appendix B is in accordance with 10 CFR Part 51 of the Commission's regulations and all applicable require-ments have been satisfied; and I. The receipt, possession, and use of source, byproduct and special nuclear material as authorized by this license will be in accord-ance with the Commission's regulations in 10 CFR Parts 30, 40 and 70. 2. Based on the foregoing findings and the Partial Initial Decision (Opera-ting License) (Phases II/III), dated June 13, 1986 and the Partial Initial j' Decision (Authorizing Operating Licenses), dated August 29, 1986 by the Atomic and Safety Licensing Board regarding this facility, Facility l-Operating License No. NFP-71, is hereby issued to Houston Lighting and Power Company, City Public Service Board of San Antonio,. Central Power and Light Company, and City of Austin, Texas (the licensees) to read as follows: A. This license applies to the South Texas Project, Unit 1, a pres-surized water reactor, and associated equipment (the facility) owned by Houston Lighting and Power Company, City Public Service Board of San Antonio, Central Power and Light Company and City of Austin, t Texas. The facility is located in Matagorda County, Texas, west of the Colorado River, 8 miles north-northwest of the town of Matagorda r l and about 89 miles southwest of Houston and is described in the I licensees' Final Safety Analysis Report, as supplemented and amended, and in the licensee's Environmental Report, as supplemented and amended; i l t i

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Subject to the conditions and requirements incorporated herein, the I

Commission hereby licenses:

(1) Houston Lighting and Power Company (HL&P) pursuant to Section 103 of the Act and 10 CFR Part 50, to possess, use and. operate the' facility at the designated location in Matagorda. County, Texas, in accordance with the procedures and limitations set forth in this license;

[ (2) Pursuant to the Act-and 10 CFR Part 50, the City Public Service Board of San Antonio (CPS), Central Power and Light Company (CPL), and the City of Austin, Texas (COA), to possess the facility at the designated location in Matagorda County, Texas, in accordance with the procedures and linlitations set forth in this license; _HL&P, pursuant to the Act and 10 CFR Part 70, to receive, possess (3) and use at any time special nuclear material as reactor fuel, in accordance with the limitations for storage and amounts required for reactor opera _ tion, as described in the Final Safety Analysis Report, as supplemented and amended; -(4) HL&P, pursuant to the Act and 10 CFR Parts 30, 40 and 70, to receive, possess, and use at any time any byproduct, source and special nuclear material as sealed neutron sources for reactor startup, sealed sources for reactor instrumentation andl radiation monitoring equipment calibration, and as fission detectors in amounts as required; HL&P, pursuant to the Act and 10 CFR Parts 30, 40 and 70, to (5) receive, possess, and use in amounts as required any byproduct, source or special nuclear material without restriction to chemi-i cal or physical form, for sample analysis or instrument calibra-i l tion or associated with radioactive apparatus or components; and l (6) HL&P, pursuant to the Act and 10 CFR Parts 30, 40 and 70, to i: possess, but not separate, such byproduct and special nuclear l materials as may be produced by the operation of the facility authorized herein. j-This license shall be deemed to contain and is subject to the con-C. ditions specified in the Commission's regulations set forth in 10 CFR Chapter I and is subject to all applicable provisions of the Act and l to the rules, regulations and orders of the Commission now or here-after in effect; and is subject to the additional conditions speci-fled or incorporated below: i i - ( a

.. c (1) Maximum Power Level HL&P is authorized to operate the facility at reactor core power levels not in excess of 3800 megawatts the7ial (100% power) in accordance with the conditions specified herein and in Attach-ment I to this license. The items identified in Attachment 1 to this license shall be. completed as specified. Attachment 1 is hereby incorporated into this license. Pending Commission approval, this. license is. restricted to reactor core power ' levels not to exceed 5 percent of full power (190 megawatts thermal); (2) Technical Specifications and Environmental Protection Plan The Technical Specifications contained in Appendix-A and the Environmental Protection Plan contained in Appendix B, both of which are attached hereto, and hereby incegorated into this license'. HL&P shall operate the facility in accordance with-the Technical Specifications and the Environmental Protection Plan. (3) Antitrust Conditions Houston Lighting and Power Company, City Public Service Board of San Antonio,. Central Power and-Light Company and City of Austin, Texas shall comply with the antitrust conditions delineated in Appendix C to this license; Appendix C is hereby -incorporated into this license. (4) Fire Protection (Section 9.5.1, SER, SSER Nos. 2, 3 and 4)* HL&P shall implement and maintain in effect all provisions of the approved fire protection program as described in the Final ~ Safety Analysis Report, and the Fire Protection of Safe i Shutdown Capability report for the facility, and submittals as l' approved in the SER (NUREG-0781) dated April 1986 and its l Supplements, subject to the following provision: l' The licensee may make changes to the apprcved 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. "The parenthetical notation following the title of many license conditions denotes the section of the Safety Evaluation Report andAr its supplements wherein the license condition is discussed. --m.,.-

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a; (5) Physical Security (Section 13.6 SSER No. 3) HL&P shall fully implement and maintain in effect all provisions of the physical security, guard training and qualification.cand 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 10.54(p).. The plans, which contain Safeguards Information protected under 10 CFR 73.71, are entitled: " South Texas Project Electric Generating Station Physical Security Plan," with revisions submitted through March 20, 1987; " South Texas Project Electric Generating Station Security Personnel Qualification and Training Plan," with revisions submitted through March 20, 1987; and " South Texas Project Electric Generating Station Safeguards Contingency Plan," with revisions submitted through March 29, 1985. [ (6) SPDS License Conditions (Section 18.. SSER No. 4 HL&P shall accomplish the following prior to startup from the j first refueling outage.: (a) Modify the critical safety function displays a) to provide the status of the radioactivity control safety function and b) to continuously display the status boxes that summarize l-plant safety status. (b) Establish formal mechanisms for controlling system update p -rates. (c) Investigate and correct excessive display generation times - those greater than 10 seconds. (d) Develop a program and implement procedures for controlling SPDS software and data base changes. (e) Document the process used to verify that the SPDS system requirements are complete and that this process of veriff-cation is independent of the design process. (7) Supplementary Containment Purae Isolation (Section 11.5 SSER No. 4) HL&P shall provide, prior to startup from the first refueling l outage, control room indication of the normal and supplemental l containment purge sample line isolation valve position. L j (8) Main Cooling Reservoir (Section 2.5.7 SSER No. 2) HL&P shall complete remedial work on the reservoir embankment i before the water level is increased substantially over 35 ft. ms1. -r.--.~---.,.4,-.r,,.. -..--4,.,-e .--.w,e,,_.,,_m.%y--,,,....,m_--,..m-r,my,.

D. Exemptions The following exemptions are authorized by law and will not endanger life or property or the common defense and security, and certain special j With the granting of these exemptions, the circumstances are present. facility will operate, to the extent authorized herein, in conformity with the application, as amended, the provisions of the Act, and the rules and regulations of the Commission. (1) The facility requires a schedular exemption from the requirements of The staff has general Design Criterion 4, Appendix A to 10 CFR 50. described in detail in Supplement 4 to the Safety Evaluation Report the technical basis associated with this exemption. The staff's environmental assessment was published on Therefore, pursuant to 10 CFR 50.12(a)(1), 10 CFR 50.12(a)(2)(111) and (iv), The South Texas Project Unit 1, is exempt from the require-ments of General Design Criterion (GDC) 4, Appendix A to 10 CFR 50 with respect to the dynamic loading effects associated with the postulated pipe breaks described in detail in Section 3.6.3 of Supplement 4 to the Safety Evaluation Report. These dynamic loading effects include pipe whip, jet impingement, and break-associated Specifically, this eliminates the need to dynamic transients. install jet impingement barriers and pipe whip restraints associated with postulated pipe breaks in the pressurizer surge line, and the accumulator injection lines. This exemption will expire 6 months following completion of the current GDC-4 rulemaking changes or at the end of the second refueling outage, whichever occurs earlier. (2) The facility requires a technical exemption from the requirements of 10 CFR 50, Appendix J, Section III.D.2(b)(ii). The justification of this exemption is contained in Section 6.2.6 of Supplement 3 to the ' Safety Evaluation Report. The staff's environmental assessment was Therefore, pursuant to 10 CFR published on 50.12(a)(1),10 CFR 50.12(a)(2)(ii) and (iii), The South Texas Project Unit 1 is exempt from the quoted requirement and instead, is required to perform the overall air lock leak test at pressure P prior tc establishing containment integrity if air lock maintena$ce i has been performed that could affect the air lock sealing capability. l (3) The facility requires a schedular exemption from the requirements of General Design Criterion 57, Appendix A to 10 CFR 50. The staff has described in detail in Supplement 4 to the Safety Evaluation Report j the technical bases associated with this exemption. The staff's j environmental assessment was published on Therefore, pursuant to 10 CFR 50.12(a)(2)(v) the South Texas Project Unit 1 is exempt from the requirements of GDC-57 applicable to the essential component cooling water (CCW) piping which is also used by the non-essential chilled water system in providng cooling to the Reactor Containment Fan Coolers (RCFC). This exemption will expire at the i end of the first refueling outage. i a

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!C) : e (4) The facility was previously granted exemption from the criticality ~ monitoring requirements of 10 CFR 70.24 (See Materials License No. SNM-1972 dated December 29,'1986 and Section 9.1.2 of SSER-3). The South Texas Project Unit 1 is hereby. exempted from the criticality monitoring provisions of 10 CFR 70.24 as applied to fuel assemblies held under this license. E. Except as otherwise provided in the Technical Specifications or Environmental Protection Plan..the licensee shall report any vio-lations of the requirements contained in Section 2.C. of this license in.the following manner: initia11 notification shall be made within twenty-four (24) hours to the NRC Operations Center via the Emergency Notification System with written follow-up within 30 days in accord-ance with the procedures described in 10 CFR 50.73(b), (c), and (e). F. The licensees shall have and maintain financial 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. G. This licensee is effective as of the date of issuance and shall expire at midnight on , 2027. 1 FOR THE NUCLEAR REGULATORY COMMISSION 4 Thomas E. Murley, Director l ' Office of Nuclear Reactor Regulation

Enclosures:

1.

2. Appendix A - Technical Specifications (NUREG-1255) l 3. Appendix B, Environmental Protection Plan 4. Appendix C, Antritrust Conditions i Date of Issuance: i \\ l c i

t 4 ' ATTACHMENT 1 T0 OPERATING' LICENSE NO. NPF-71 7 Prior to criticality: 1.' Justify to the staff's satisfaction the-deviation from TMI Action Plan requirement II.E.4.2 as applied to the Component Cooling Water lines which provide cooling to the Reactor Coolant Pumps, Reactor Coolant Drain Tank Heat Exchanger, and Excess Letdown Heat Exchanger. 2. Incorporate into the FSAR the commitments on design modifications, and inspections to confirm adequacy thereof, related to the wear of Bottom-Mounted Instrumentation thimbles. 3. Complete all actions to the staff's satisfaction on the items related to the Seismic Qualifications Review Team audit documented in Section 3.10.1 t of SWR Supplement No. 3. 4. . Document compliance with 10 CFR 50.49. 5. Demonstrate adequacy of design with respect to attachment of safety-related components to non-safety-related frames. 6. Justify deviations from Regulatory Guide 8.27. 7. Justify deviations from Regulatory Guide 1.68 with respect to the Loss-of-Offsita-Power Test. Prior to Full Power Operation: 1. Address to the staff's satisfaction the items resulting from the SPDS audit conducted by the staff during January 27-30, 1987 and documented in j the meeting summary of March 12, 1987, i i The' preoperational tests and testing exceptions identified in the attachment to the May 26, 1987 letter from J. H. Goldberg to the USNRC Document Control Desk shall be completed in accordance with the scheduled commitments contained in j that attachment. i a I 4 i e e 4

w CONFORMED i December 1980 LICENSE: CONDITIONS FOR SOUTH TEXAS PROJECT- -UNITS NOS. 1 AND 2 ~ 'The following definitions apply to paragraph I.B: I. A. (1) " Applicants" means severally and jointly Houston Lighting and Power Company (HLP), Central Power and Light Company (CPL), . City Public Service Board of San Antonio (CPSB), and the City of Austin Electric Utility Department (C0A) and any of their_ respective successors, assignees, or subsidiaries engaged in the generation, transmission or the distribution of. electric Where a license condition is directed to a' specific power. Applicant, that Applicant is identified. (2) " South Texas Area" means (a) those counties in which Appli-cant's serve electric customers at wholesale or retail, and (b) those other areas, if any, surrounded by the areas in (a) above. + l (3) " Entity" means an electric utility which is a person, a private or public corporation, a governmental agency or authority, a municipality, a cooperative, or an association !~ of any of the foregoing owning, operating, or contractually controlling, or proposing in good faith to own, ' operate, or contractually control facilities for generation, transmission or distribution of electric power and energy for the purpose of providing electric utility service. i 4 l' (4) " Bulk Power" means the electric power and/or electric energy l supplied or made available at transmission or subtransmission l voltages. (5) " Costs" means all appropriate operating and maintenance expenses and all ownership costs where applicable. l (6) The terms " connection" and " interconnection" are used inter- [ changeably. i B. The Applicants defined in Paragraph I.A.(1) are subject to the following antritrust conditions: (1) (a) CPL shall afford to the Public Utilities Board of the City of Brownsville an opportunity to participate in the South Texas Projects, Units 1 and 2, on reasonable terms l and conditions and in accordance with the South Texas e Project Participation Agreement and on a basis that will fully compensate CPL for its actual costs, provided that 4 l Appendix C - South Texas f l --.a.-.---

i .l 2-Brownsville must enter into a firm commitment to acquire the ownership interest made availatie to it by the terms of this paragraph no later than Ja uary 1,1983. The ownership interest which CPL shall make available to Brownsville shall be computed by r;1tiplying CPL's Generation Entitlement Share in STP Units 1 and 2 by the ratio of Brownsville's peak demand for 1980 to CPL's peak demand for 1980. In the event Brownsville obtains an ownership interest from any Applicant other than CPL, the ownership interest which CPL sast make available to Brownsville hereunder shall be redaced by one megawatt for each megawatt in excess of 12 segawatts that Browns-ville acquires from other Applicants. Applicants shall not exercise any rights of first refusal over Brownsville's efforts to participate in the South Texas Project to the extent of the first 50 MW of such ownership share. (b) CPL shall afford Brownsville reasonable transmission services to enable it to obtain delivery of power from the STP, provided that CPL is fully compensated for its costs of such transmission services plus a reasonable return on investment, and provided further that in the event transmission capacity is not available to provide such transmission services, the provisions of Paragraph I.B.(4) hereof define the extent of the obligation which CPL has with respect to the construction of additional' transmission facilities necessary to provide such trans-mission service. (c) CPL will also afford all reasonable coordination services (including but not limited to reserve sharing, backup power, maintenance power and emergency power) necessary for Brownsville to have effective access to power fron STP obtained from CPL, provided that CPL is fully com-pensated for its costs of providing such coordination j services plus a reasonable return on investment. i Each Applicant shall facilitate where necessary Browns-(d) ville's obtaining the participation interests and services i. specified in paragraphs 1(a),1(b), and 1(c) above. l The Applicants, as long as they are members of the Texas (2) Interconnected Systems (TIS) or any other organization which considers the planning for or operations of ERCOT-TIS elec-tric utilities, shall support reasonable requests by Entities in the South Texas Area having generation capacity for member-l l ship in TIS or such other organizations. The Applicants shall also propose and actively support, as long as they are l members thereof, the creation of one or more additional j i l Appendix C - South Texas i i ,----.~,my-----,w ,me-.. w,me-cn e m3 --w e

classification of TIS membership, based on non-discriminatory criteria to afford access to data, studies and recommendations to all Entities in the South Texas Area who desire membership. The Applicants shall share information with other Entities with respect to,'and shall conduct with other such Entities through any electric utility planning organizations of which the' Applicants are members, joint studies and planning of future generation, transmission and related facilities; provided, however, that this condition shall not obligate the Applicantstoconductsuchjointstudiesorjointplanning unless (1) the studies or planning are requested and carried out in good faith and based on reasonably realistic and reasonably complete data or projections, (2) the studies or planning are reasonably justified on the basis of sound t. engineering principles, (3) appropriate protection is accorded proprietary or other confidential business and financial information, and (4) the costs of such studies or i planning are allocated on a fair and equitable basis, i (3) Each Applicant shall participate in and facilitate the exchange of bulk power by transmission over its own transmission facilities between or among two or.more Entities in the South Texas Area with which the Applicant is connected; and between any such Entity (fes) and any Entity (ies) outside the South Texas Area between whose facilities the Applicant's trans-mission lines and other transmission lines, including direct current (asynchronous) transmission lines, form a continuous electrical path; provided, that (1) permission to utilize such other transmission lines has been requested by the pro-ponent of the arrangement, (ii) the arrangements reasonably can be accommodated from a functional and technical stand-point, and (iii) any Entity (ies) requesting such transmission arrangements shall have given reasonable advance notice of I its (their) schedule and requirements. Such transmission [ shall be on terms that fully compensate an Applicant for its costs including a reasonable return on investment; provided, however, that such transmission services and the rates to be l charged therefor shall be subject to the jurisdiction of the appropriate regulatory agency (ies). Where the rates to be charged are subject to the jurisdiction of an appropriate regulatory authority, the Applicants shall not refuse to l provide such transmission services merely because the rate (s) i to be charged therefor are the subject of dispute with such Entity (tes). An Applicant shall not be required to enter into any' arrangement which would unreasonably impair system 7 I [ reliability or emergency transmission capacity, it being recognized that while some transmission may be operated fully loaded other transmission may be for emergency use and operated either unloaded or partially loaded. Appendix C - South Texas

m (4) 'Each Applicant shall include in its planning and construction programs sufficient transmission capacity as required for the transactions referred to in paragraph I.B.(3) (and I.B.(5) for CPL), provided any Entity (ies) in the South Texas Area gives an Applicant sufficient advance notice as may be neces-sary to accomodate its (their) requirements from a functional and technical standpoint and that such Entity (tes) fully compensates an Applicant for its costs including a reasonable return on investment.1/ An Applicant shall not be required to construct transmission facilities if construction of such facilities is infeasible, or if such would unreasonably impair system reliability or emergency transactions capacity. In connection with the performance of the obligations above, an Applicant shall not be foreclosed from requiring a reason-able contribution in aid of construction or from making arrangements for coordinated construction of future trans-mission lines such that each of the parties to the trans-action would own an interest in or a segment of the trans-mission addition in proportion to its share of the cost of the addition. Any such contribution made in aid of construc-tion or ownership interest shall also be properly credited in determining any wheeling charges. If an Applicant engages in joint ownership of transmission lines with any other Entity (ies), it shall not refuse to engage in similar transactions in comparable circumstances with other Entities, subject to the provisions limiting an Applicant's obligations above. (5) CPL shall, upon reasonable advance notice, enter into arrange-ments for the sale of full and partial requirements bulk power pursuant to a filed tariff to any requesting Entity having a non-aggregated generating capacity of 200 megawatts or less under reasonable terms and conditions which shall include a provision for CPL to recover its costs of providing such service plus a reasonable return on investment. Such tariff shall not require C?L to enter into any arrangement for such sale (s) if (a) it does not have available sufficient bulk power or adequate transmission to provide the requested service; or (b) the sale would impair CPL's ability to render adequate and reliable service to its own customers or its ability to discharge prior commitments. It is expressly recognized, and such tariff may reflect, that the determination whether suffi-cient bulk power or adequate transmission is available to accom-modate a request for full or partial requirements bulk power will consider and recognize that (1) CPL will be engaging in Nothing in this paragraph shall require CPSB or C0A to undertake any y action (s) which may be contrary to any state constitutional provision. Appendix C - South Texas

centralized economic dispatch with its affiliates in accord-ance with, and pursuant to the requirements of, the Public Utility Holding Company Act of 1935, (2) pursuant to such requirements CPL may first utilize its generating and trans-mission capacity to accomplish such centralized economic dispatch before its generating and trar.smission capacity is made available for full or partial requirements bulk power sales under the tariff, and (3) if other CSW system capacity becomes available by reason of CPL's pa-ticipatic, in such centralized economic dispatch, then such other CSd system capacity will, at the option of CSW, be made available in lieu of CPL's obligation to provide such capacity. Any curtailment of CPL s full or partial requirements sales shall be on a reasonable and non-discriminatory (where possible) basis. (6) (a) In connection with the performance of its obligations herein and subject to the provisions of this paragraph, HLP shall not disconnect from or refuse to connect its then-existing or proposed facilities with the facilities of any Entity used or proposed to be used for the trans-mission of electric energy in interstate commerce by reason of the interstate character of such facilities, and HLP will not prevent any Entity with which it main-tains connections from establishing, maintaining, modi-fying or utilizing a connection with facilities used or proposed to be used for the transmission of electric energy in interstate commerce by reason of the inter-state character of such facilities, provided that, anything in these license conditicas to the contrary notwithstanding (but subject to stbparagraph 6(b) and 6(d) below) any Entity seeking to establish, maintain, modify or utilize any connection which could affect the nonjurisdictional status of HLP under the Federal Power Act shall have filed an application with and used its best efforts to obtain an order from the FERC, applicable to HLP under Section 210, 211 and 212 of such Act, requiring the establishment, maintenance, modification or utilization of such connection. In the event that an Entity files an application pursuant to this subparagraph, HPL agrees that it will not unreasonably oppose any such application. In the event such application is denied by a valid order of the FERC, any continuing refusal by HLP to estabish, maintain, modify or utilize such connection with such Entity shall be subject to review by the NRC in accordance with the Atomic Energy Act of 1954, as amended, and the rules and regulations thereunder, to determine whether any such refusal woult' create or maintain e-situation inconsistent with the antitrust Appendix C - South Texas

6-laws or the' policies thereunder in accordance with the standards set forth in Section 105 of such Act; provided that all factual determinations by the FERC on any cost or system reliability reason (s) for any such refusal shall not be subject to redetermination by the NRC. The burden of proof will be on the HLP in such NRC proceeding. (b) HLP shall not enter into or maintain any agreement or understanding with any other Entity (ies) or Applicant to refuse to deal with another Entity (ies) or Applicant (s) with the purpose of maintaining a non-jurisdictional status under the Federal Power Act, and in the event-that HPL refuses to make an interconnection with or chooses to disconnect from any Entity (ies), such decision and/or action by HLP will be undertaken unilaterally, not jointly, and without consultation with any other Entity (ies), provided, however, that after HLP decides to undertake such action, it may notify any affected Entity of its decision. (c) In the event that an Entity files an application pursuant to subparagraph (a) of this paragraph solely by reason of HLP's desire to maintain its non-jurisdictional status under the Federal Power Act, HLP agrees to pay such Entity's reasonable expenses in connection with such application and the ensuring proceeding, 2/ provided,. 4 however, that HLP shall not be required to pay for any expenses of such Entity of that Entity's application is i [ denied by FERC for reasons advocated by HLP at FERC, and provided further, that HLP shall not be required to pay for any costs or expenses of such Entity which that Entity would have incurred had it not failed an applica-tion solely by reason of HLP's desire to maintain its i non-jurisdictional status under the Federal Power Act. (d) Nothing in these License Conditions shall impair the right of the Department of Justice or any other Entity, public or private, to file an antitrust action in any Federal Court in the event any Applicant refuses to I establish, maintain, modify or utilize any connection l with any Entity (ies), provided that nothing herein shall preclude any Applicant from raising any legal or equitable i defense that may be available to it. I This obligation shall not apply to the expenses of Central and South West 2/ Corporation or Texas Utilities Company or any of their respective sub-sidiaries, including but not limited to the expenses of CSW and any of i i its subsidiaries incurred in FERC Docket No. EL79-8. i l l [ Appendix C - South Texas t ~ t '-w ,n r - - - - - - ~ +,~m,<+w w-,, n g,m,,, - mr,,e, -,wmv., +--,,,,m_. www a,w.,-w om, or we,-e-wwene-m m e=~n~

n j l./ 7-e efe y, (7)" HLP agrees to use its best efforts to amend any: agreements ' with all Entities to ensure that such agreements aronot'~ ^ /

  • inconsistent with paragraphs (6)(a) and (6)(b) hereof.

(8) If Applicar.ts participate in any future w;1 ear units other . 'f than those which are now under construction or for which an application for a'canstruction permit hasiteen filed, they V' ' [ ' will afford similar participation to Entities in the South / Texas Ares'on a reasonable basis. ' App 1! canth, a; gree that the reliability of power delivered into 3 (9) ? TIS-ERCOT over DC asynchronous connections shall not be i treated differently by the Applicants, for purposes of spinning and installed reserve calculations and requirements, than ~ would be the case if such power. originated with TIS-ERCOT. /OutagesonDC.asynchronousconnectionsshallbetreatedby 4, i the Applicants in the same way as losses of generation within' [ TIS-ERCOT. Applicants agree to support the adoption o.f. principles involving DC asynchronous connections contain(d in this paragraph within any TIS or ERCOST organization. 6 (10) HLP and CPL shall use their best efforts to modify the O fer of+ Settlement filetf in FERC Docket No. EL79-8,to include each of the undertakings set forth in the letter'ag(eement_ among HLP, Central and South West Corporation, Ten s utilities Company and the FERC staff, dated September 11;3980. 'HLP and CPL shall thereafter use their best efferts to decure approval thereof by,the FERC, and shall abide by thy valid order (s) of the FERC issued purusant to the Offer of Settle-ment. Nothing herein shall preclude the Department of Justice .from instituting or intervening in.any proceeding at FERC, including Docket No. EL79-8, and from presenting such argu-ments and evidence that it deems appropriate. (11) The-foregoing conditions shall b's implemented (1) in a manner consistent with applicable Federal, strte and local statutes and regulations, and (2) subject to any regulatory agency l having jurisdiction. Nothing herein shall preclude the or other relief to, which Applicants from seeking an exemptior'e law or shall be construed they may be entitled under applicab1 i as a waiver of their right to conte %t the applicability of the license conditions with respect to aay factual situations l i I 1 Appendix C - South Texas i/ i / ) --~--.. ~... -....,

h- .g June 11, 1987 0 Docket No. 50-498 i MEMORANDUM FOR: Charles E. Rossi, Director Division of Operational Events Assessment Lawrence Shao, Director Division of Engineering and Systems Technology James G. Partlow, Director Division of Reactor Inspection and Safeguards Frank J. Congel, Director Division of Radiation Protection and Emergency Preparedness Jack W. Roe, Director Division of Licensee Performance and Quclity Evaluation FROM: Jose A. Calvo, Director Project Directorate - IV Division of Reactor Projects - III, IV, V and Special Projects

SUBJECT:

REVIEW OF DRAFT LICENSE FOR LOW POWER OPERATION ON SOUTH TEXAS PROJECT UNIT 1 Enclosed is the subject draft license which is being transmitted for your review and comment. This draft copy does not contain the Technical Specifi-cations, the Environmental Protection Plan and the Indemnity Agreements. The license conditions and exemptions have been identified subject to finali-zation of the Environmental Assessment and the Safety Evaluation Report. Attachment I shows items which are currently being addressed; resolution on most of them.is expected at the time of issuance. ~ Please provide your comments by June 19, 1987 so that the staff can be ready to issue the license in the last week of June if the applicant completes con-l struction on schedule. l OriginalsigmEdN LL ) Jose A. Calvo, Direc r Project Directorate - IV Division of Reactor Projects - III, IV V and Special Projects CONTACT: l N. P. Kadambi, NRR/PD-IV i 49-29407 l DISTRIBUTION Docket File NAC PORs Local PDR PD4 Reading DCrutchfield NPKadambi f -RPerch PNoopan Y kN PD4 Ml -- PD % PD4 l NPKadambi:as PNoonan JACalvo g i 6/g)/87 6 / 11 / 8 7 6/gg/87 g

p# UNITED STATES NUCLEAR REGULATORY COMMISSION o WASHINGTON, D. C. 20666 g l %,....+/ HOUSTON LIGHTING AND POWER COMPANY CITY PUBLIC SERVICE BOARD OF SAN ANTONIO CENTRAL POWER AND LIGHT COMPANY CITY OF AUSTIN, TEXAS DOCKET NO. 50-498 SOUTH TEXAS PROJECT, UNIT 1 FACILITY OPERATING LICENSE License No. NPF-71 The Nuclear Regulatory Commission (the Commission or the NRC) has found 1. that: A. The application for a license filed by Houston Lighting and Power Company * (HL&P) acting on behalf of itself and as agent for the City Public Service Board of San Antonio (CPS), Central Power and Light Company (CPL), and City of Austin, Texas (C0A) (licensees) complies 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 duly made; Construction of the South Texas Project, Unit 1, (the facility) has 8. been substantially completed in conformity with Construction Permit No. CPPR-128 and 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 amcnded, the provisions of the Act, and the regulations of the Com-mission, (except as exempted from compliance in Section 2.0. 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 p Section 2.D. below); " Houston Lighting and Power Company is cuthorized to act as agent for the City Public Service Board of San Antonio, Central Power and Light Company and City of Austin, Texas and has exclusive responsibility and control over the i physical construction, operation and maintenance of the facility. l I l

t.,.. E. Houston Lighting and Power Company 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. After 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-71, is subject to the conditions for pro-tection of the environment set forth in the Environmental Protec-tion Plan attached as Appendix B, is in accordance with 10 CFR Part 51 of the Commission's regulations and all applicable require-ments have been satisfied; and I. The receipt, possession, and use of source, byproduct and special nuclear material as authorized by this license will be in accord-ance with the C9mmission's regulations in 10 CFR Parts 30, 40 and 70. 2. Bcsed on the foregoing findings and the Partial Initial Decision (Opera-ting License) (Phases II/III), dated June 13, 1986 and the Partial Initial Decision (Authorizing Operating Licenses), dated August 29, 1986 by the Atomic and Safety Licensing Board regarding this facility, Facility Operating License No. NFP-71, is hereby issued to Houston Lighting and . Power Company, City Public Service Board of San Antonio, Central Power and Light Company, and City of Austin, Texas (the licensees) to read as follows: A.- This license applies to the South Texas Project, Unit 1, a pres-surized water reactor, and associated equipment (the facility) owned by Houston Lighting and Power Company, City Public Service Board of San Antonio, Central Power and Light Company and City of Austin, Texas. The facility is located in Matagorda County, Texas, west of the Colorado River, 8 miles north-northwest of the town of Matagorda and about 89 miles southwest of Houston and is described in the licensees' Final Safety Analysis Report, as supplemented and amended, and in the licensee's Environmental Report, as supplemented and amended; c e-- e.. m v--- -v--

qn t Subject to the conditions and requirements incorporated herein, the B. Commission hereby licenses: -(1) Houston Lighting ar.d Power Company (HL&P) pursuant to Section 103 of the Act and 10 CFR Part 50, to possess, use and operate the facility at the designated location in Matagorda County, Texas, in accordance with the procedures and limitations set forth in this license; Pursuant to the Act and 10 CFR Part 50, the City Public Service (2) Board of San Antonio (CPS), Central Power and Light Company (CPL), and the City of Austin, Texas (COA), to possess the facility at the designated location in Matagorda County, Texas, in accordance with the procedures and limitations set forth in this license; HL&P, pursuant to the Act and 10 CFR Part 70, to receive, possess (3) and use at any time special nuclear material as reactor fuel, in accordance with the limitations for storage and amounts required for reactor operation, as described in the Final Safety Analysis Report, as supplemented and amended; (4) HL&P, pursuant to the Act and 10 CFR Parts 30, 40 and 70, to receive, possess, n d use at any time any byproduct, source and special nuclear material as sealed neutron sources for reactor startup, sealed sources for reactor instrumentation and radiation monitoring equipment calibration, and as fission detectors in amounts as required; HL&P, pursuant to the Act and 10 CFR Parts 30, 40 and 70, to (5) receive, possess, and use in amounts as required any byproduct, source or special nuclear material without restriction to chemi-cal or physical form, for sample analysis or instrument calibra-tion or associated with radioactive apparatus or components; and HL&P, pursuant to the Act and 10 CFR Parts 30, 40 and 70, to (6). possess, but not separate, such byproduct and special nuclear materials as may be produced by the operation of the facility authorized herein. This license shall be deemed to contain and is subject to the con-C. ditions specified in the Commission's 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 here-after in effect; and is subject to the additional conditions speci-fied or incorporated below: w

1. (1) Maximum Power Level HL&P is authorized to operate the facility at reactor core power levels not in excess of 3800 megawatts the sal (100% power) in accordance with the conditions specified herein and in Attach-ment 1 to this license. The items identified in Attachment 1 to this license shall be completed as specified. Attachment 1 is hereby incorporated into this license. Pending Commission approval, this license is restricted to reactor core power levels not to exceed 5 percent of full power (190 megawatts thermal); (2) Technical Specifications and Environmental Protection Plan The Technical Specifications contained in Appendix A and the Environmental Protection Plan contained in Appendix B, both of which are attached hereto, and hereby incc porated into this license. HL&P shall operate the facility in accordance with the Technical Specifications and the Envircnmental Protection Plan. (3) Antitrust Conditions Houston Lighting and Power Company, City Public Service Board of San Antonio, Central Power and Light Company and City of Austin, Texas shall comply with the antitrust conditions delineated in Appendix C to this license;. Appendix C is hereby incorporated into this license. (4) Fire Protection (Section 9.5.1, SER, SSER Nos. 2, 3 and 4)* HL&P shall implement and maintain in effect all provisions of the approved fire protection program as described in the Final Safety Analysis Report, and the Fire Protection of Safe l Shutdown Capability report for the facility, and submittals as l approved in the SER (NUREG-0781) dated April 1986 and its l Supplements, subject to the following provision: The licensee may make changes to the appreved 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. "The parenthetical notation following the title of many license conditions denotes the section of the Safety Evaluation Report and/cr its supplements wherein the license condition is discussed. i

l l' l \\. - t' '(5)' Physical Security (Section 13.6 SSER No. 3) HL&P shall fully implement and maintain in effect all provisions of the physical 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 10.54(p). The plans, which contain. Safeguards Information protected under 10 CFR 73.71, are entitled: " South Texas Project Electric Generating Station Physical Security Plan," with revisions submitted through March 20, 1987; " South Texas Project Electric Generating Station Security Personnel Qualification and Training Plan," with revisions submitted through March 20, 1987; and " South' Texas Project Electric Generating Station Safeguards Contingency Plan," with revisions submitted through March 29, 1985. (6) SPOS License Conditions (Section 18.. SSER No. 4 HL&P shall accomplish the following prior to startup from the first refueling outage.: (a) Modify the critical safety function displays a) to provide the status of the radioactivity control safety function and b) to continuously display the status boxes that summarize plant safety status. (b) Establish formal mechanisms for controlling system update rates. (c) Investigate and correct excessive display generation times - those greater than 10 seconds. (d) Develop a program and implement procedures for controlling SPDS software and data base changes. (e) Document the process used to verify that the SPDS system requirements are complete and that this process of veriff-cation is independent of the design process. (7) Supplementary Containment Purge Isolation (Section 11.5 SSER No. 4) HL&P shall provide, prior to startup from the first refueling outage, control room indication of the nonnal and supplemental containment purge sample line isolation valve position. (8) Main Cooling Reservoir (Section 2.5.7, SSER No. 2) HL&P shall complete remedial work on the reservoir embankment before the water level is increased substantially over 35 ft. ms1.

D. Exemptions The following exemptions are authorized by law and will.not endanger life or. property or the common defense and security, and certain special With the granting of these exemptions, the circumstances are present.- facility will operate, to the extent authorized herein, in conformity with the ~ application, as amended, the provisions of the. Act, and the rules and regulations of the Commission. The facility requires a schedular exemption from the requirements of (1) The staff has general Design Criterion 4, Appendix A to 10 CFR 50. described-in detail in Supplement 4 to the Safety Evaluation Report the technical basis associated with this exemption. The staff's environmental assessment was published on Therefore, pursuant to 10 CFR 50.12(a)(1), 10 CFR 50.12(a)(2)(iii) and (iv), The South Texas Project Unit 1, is exempt from the require-ments of General Design Criterion (GOC) 4, Appendix A to 10 CFR 50 with respect to the dynamic' loading effects associated with the postulated pipe breaks described in detail in Section 3.6.3 of Supplement 4 to the Safety Evaluation Report. These dynamic loading effects include pipe whip, jet impingement, and break-associated Specifically, this eliminates the need to dynamic transients. install jet impingement barriers and pipe whip restraints associated with postulated pipe breaks in the pressurizer surge line, and the accumulator injection lines.. This exemption will expire 6 months following completion of the current GDC-4 rulemaking changes or at the 'end of the second refueling outage, whichever occurs earlier. The facility requires a technical exemption from the requirements of (2) 10 CFR 50, Appendix J, Section III.D.2(b)(ii). The' justification of this exemption is contained in Section 6.2.6 of Supplement 3 to the Safety Evaluation Report. The staff's environmental assessment-was . Therefore, pursuant to 10 CFR published on 50.12(a)(1),10 CFR 50.12(a)(2)(ii) and (iii), The. South Texas Project Unit 1 is exempt from the quoted requirement and instead, is I required to perform the overall air lock leak test at pressure P prior to establishing containment integrity if air lock maintena$ce l has been performed that could affect the air lock sealing capability. The facility requires a schedular exemption from the requirements of (3) General Design Criterion 57, Appendix A to 10 CFR 50. The staff has described in detail in Supplement 4 to the Safety Evaluation Report the technical bases associated with this exemption. The staff's Therefore, environmental assessment was published on pursuant to 10 CFR 50.12(a)(2)(v) the South Texas Project Unit 1 is exempt from the requirements of GDC-57 applicable to the essential i component cooling water (CCW) piping which is also used by the non-essential chilled water system in providng cooling to the Reactor Containment Fan Coolers (RCFC). This exemption will expire at the end of the first refueling outage. L lL..

The facility wa's previously granted exemption from the' criticality (4) monitoring requirements of 10 CFR 70.24 (See Materials License No. SNM-1972 dated December 29, 1986 and.Section 9.1.2 of SSER-3). The South Texas Project Unit 1 is hereby exempted from the criticality monitoring provisions of 10 CFR 70.24 as applied to fuel assemblies held under this license. ExceptasotherwiseprovidedintheTechnicalSpecificationsor E. Environmental Protection Plan, the licensee shall report any vio-lations of the requirements contained in Section 2.C. of this license in the following manner: initial notification shall be made within twenty-four (24) hours to the NRC Operations Center via the Emergency Notification System with written' follow-up within 30 days in accord-ance with the procedures described in 10 CFR 50.73(b), (c), and (e). The licensees'sh'all have and maintain financial protection of such - F.' 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. G.- This licensee is effective as of the date of issuance an'd shall expire at midnight on , 2027. FOR THE NUCLEAR REGULATORY COMMISSION l Thomas E. Murley, Director. Office of Nuclear Reactor Regulation

Enclosures:

1.

2. Appendix A - Technical Specifications (NUREG-1255) 3. Appendix B, Environmental Protection Plan 4. Appendix C, Antritrust Conditions Date of Issuance:

p._ .g - ATTACHMENT 1 TO OPERATING LICENSE NO. NPF-71 Prior -to criticality: 1. Justify to the staff's satisfaction the deviation from TMI Action Plan requirement II.E.4.2 as applied to the Component Cooling Water lines which-provide cooling to the Reactor Coolant Pumps, Reactor Coolant Drain Tank. Heat Exchanger, and Excess Letdown Heat Exchanger. 2. Incorporate into the FSAR the commitments on design modifications, and inspections to confirm adequacy thereof, related to the wear of Bottom-Mounted Instrumentation thimbles. 3. Complete all action's-to the staff's satisfaction on the items related to the Seismic Qualifications Review Team audit documented in Section 3.10.1 of SWR Supplement No. 3. 4. Document compliance with 10 CFR 50.49. 5. Demonstrate adequacy of design with respect to attachment of safety-related components to non-safety-related frames. 6. Justify deviations from Regulatory Guide 8.27. 7. Justify deviations from Regulatory Guide 1.68 with respect to the Loss-of-Offsite-Power Test. Prior to Full Power Operation: 1. Address to the staff's satisfaction the items resulting -from the SPDS audit conducted by the staff during January 27-30, 1987 and documented in the meeting summary of March 12, 1987. 4 The preoperational tests and testing exceptions identified in the attachment to l the May 26, 1987 letter from J. H. Goldberg to the USNRC Document Control Desk shall be ccmplete'd in accordance with the scheduled commitments contained in that attachment. l l l I

g CONFORMED-December 1980 LICENSE CONDITIONS FOR SOUTH TEXAS PROJECT UNITS NOS. 1 AND 2 LI. A. The following definitions apply to paragraph I.B: (1) " Applicants" means severally and jointly Houston Lighting and Power Company (HLP), Central Power and Light Company (CPL), City Public Service Board of San Antonio-(CPSB),'and the City of Austin Electric Utility Department (C0A) and any of their respective successors, assignees, or subsidiaries engaged in the generation, transmission or the distribution of electric Where a license condition is directed to a specific power. Applicant, that Applicant is identified. (2) " South Texas Area" means (a) those counties in which Appli-i cant's serve electric customers at wholesale or retail, and (b) those other areas, if'any, surrounded by the areas in (a) above. (3) " Entity" means an electric utility which is a person, a f private or public corporation, a governmental agency or authority, a municipality, a cooperative, or an association of any of the foregoing owning, operating, or contractually controlling, or proposing in good faith to own, operate, or contractually control facilities for generation, transmission i or distribution of electric power and energy for the purpose of providing electric utility service. " Bulk Power" means the electric power and/or electric energy (4) supplied or made available at transmission or subtransmission l voltages. (5) " Costs" means all appropriate operating and maintenance expenses and all ownership costs where applicable. (6) The terms " connection" and " interconnection" are used inter-changeably. The Applicants defined in Paragraph I. A.(1) are subject to the B. following antritrust conditions: CPL shall afford to the Public Utilities Board of the (1) (a) City of Brownsville an opportunity to participate in the South Texas Projects, Units 1 and 2, on reasonable terms and conditions and in accordance with the South Texas Project Participation Agreement and on a basis that will fully compensate CPL for its actual costs, provided that Appendix C - South Texas 4 e ,~,..--,,-,v r,w,,r,v,,e .,,,,--,-,-----.e.e-vm----w,m,sw,,,wr,e-,-.-,,,,,v- - g rw, ~r--,,w-,.,--,-

9 2-Brownsville m'ust enter into a firm commitment to acquire the ownership interest made availatie to it by the terms The of this paragraph no later than Ja uary 1,1983.. ownership interest which CPL shall make available to Brownsville shall.be computed by citiplying CPL's Generation Entitlement Share in STP Units 1 and 2 by the ~ ratio of Brownsv111e's peak demand for 1980 to CPL's peak demand for 1980. In the event Brownsville obtains 'an. ownership interest from any Applicant other than CPL, the ownership interest which CPL sust make available to Brownsville hereunder shall be redaced by one megawait for each megawatt in excess of 12 segawatts that Browns-Applicants shall ville acquires from other Applicants. not exercise any rights of first refusal over Brownsville's efforts to participate in the South Texas Project to the-extent of the first 50 MW of such ownership share. CPL shall-afford Brownsville reasonable transmission { (b) services to enable it to obtain delivery of power from the STP, provided that CPL is fully compensated-for its costs of such transmission services plus a reasonable return on investment,- and provided further that in the event transmission capacity is not available to provide such transmission services, the provisions of Paragraph i I.B.(4) hereof define the extent of the obligation which CPL has with respect to the construction of additional transmission facilities necessary to provide such _trans-mission service. CPL will also afford all reasonable coordination services (c) (including but not limited to reserve sharing, backup ' power, maintenance power and emergency power) necessary ^ for Brownsville to have effective access to power from STP obtained from CPL, provided that CPL is fully com-I pensated for its costs of providing such coordination services plus a reasonable return on investment, Each Applicant shall facilitate where necessary Browns-i (d) ville's obtaining the participation interests and services specified in paragraphs 1(a),1(b), and 1(c) above. L The Applicants, as long as they are members of the Texas (2) Interconnected Systems (TIS) or any other organization which considers the planning for or operations of ERCOT-TIS elec-tric utilities, shall support reasonable requests by Entities I in the South Texas Area having generation capacity for member-ship in TIS or such other organizations. The Applicants shall also propose and actively support, as long as they are members thereof, the creation of one or more additional Appendix C - South Texas e ne- ---e w w r v-- an,,-- ,,n-, - - - -, --,---w--- e--me---,cm_,en -,-,--<-,-----,n rs,v,-w ,,,-o,-,- .+ r ,-w-, r,, e----,,,r,-mvem-

s., classification of TIS membership, based on non-discriminatory criteria to afford access to data, studies and recommendations to all Entities in the South Texas Area who desire membership. .The Applicants -shall share information with other Entities - with respect to, and shall conduct with other such Entities-through any electric utility planning organizations of..which the Applicants are members, joint studies and planning of future generation, transmission and related facilities; provided, however, that this condition shall not obligate the - Applicants to conduct such joint studies or joint planning unless (1) the studies or planning are requested and carried out in good faith and based on reasonably realistic and reasonably complete data or projections, (2) the studies or planning are reasonably justified on the basis of sound engineering principles, (3) appropriate protection is accorded proprietary or other confidential business and financial information, and (4) the costs of such studies or t planning are allocated on a fair and equitable basis. (3) Each Applicant shall participate in and facilitate the exchange of bulk power by transmission over its own transmission facilities between or among two or more Entities in the South Texas Area with which the Applicant is connected; and between any such Entity (ies) and any Entity (ies) outside the South Texas Area between whose facilities the Applicant's trans-mission lines and other transmission lines, including direct current (asynchronous) transmission lines, form a continuous electrical path; provided, that (i) permission _to utilize such other transmission lines has been requested by the pro-ponent of the arrangement, (ii) the arrangements reasonably can be accommodated from a functional and technical stand-point, and (iii) any Entity (ies) requesting such transmission arrangements shall have given reasonable advance notice of its (their) schedule and requirements. Such transmission shall be on terms that fully compensate an Applicant for its costs including a reasonable return on investment; provided, however, that such transmission services and the rates to be l charged therefor shall be subject to the jurisdiction of the appropriate regulatory agency (ies). Where the rates to be l charged are subject to the jurisdiction of an appropriate i regulatory authority, the Applicants shall not refuse to provide such transmission services merely because the rate (s) to be charged therefor are the subject of dispute with such Entity (ies). An Applicant shall not be required to enter into any arrangement which would unreasonably impair system reliability or emergency transmission capacity, it being recognized that while some transmission may be operated fully loaded other transmission may be for emergency use and operated either unloaded or partially loaded. Appendix C - South Texas 4 6 ~e- ,a e,c e, - - -,.,,,a e v.,-,,,,,,,n, ,,,-,,,,-,,,,,,,,,,,,n__-,.-,,,,,,,.,,.,,,-.m,,-,,,,-,,,,,,--m-

4 <4 (4) Each Applicant shall include in~its planning and construction ~ programs sufficient transmission capacity as required for the -transactions referred to in paragraph I.B.(3) (and I.B.(5) for CPL), provided any Entity (fes) in the South Texas Area gives an Applicant sufficient advance notice as may be neces-- ~ sary to accomodate.its (their) requirements'from a functional and technical standpoint and that such Entity (fes) fully compensates an Applicant for its costs including a reasonable return on investment.1/ An Applicant shall not be required to construct transmission facilities if construction of such facilities is infeasible, or if such would unreasonably impair system reliability or emergency transactions capacity. In connection with the performance of the obligations above,- an Applicant shall not be foreclosed from requiring a reason-able contribution in aid of construction or from making arrangements for coordinated construction of future trans-mission lines such that each of the parties to the trans-action would own an interest in or a segment of the trans-mission addition in proportion to its share of the cost of l the addition. Any such contribution made in aid of construc-tion or ownership interest shall also be properly credited in determining any wheeling charges. If an Applicant engages in joint ownership of transmission lines with any other Entity (ies), it shall not refuse.to engage in similar transactions in comparable circumstances with other Entities, subject to the provisions limiting an Applicant's obligations above. i [ (5) CPL shall, upon reasonable advance-notice, enter into arrange-ments for the sale of full.and partial requirements bulk power pursuant to a filed tariff to any requesting Entity having a non-aggregated generating capacity of 200 megawatts or less under reasonable terms and conditions which shall include a provision for-CPL to recover its costs of providing such service plus a reasonable return on investment. Such tariff shall not require CPL to enter into any arrangement for such sale (s) if (a) it does not have available sufficient bulk power or adequate transmission to provide the requested service; or (b) the sale would impair CPL's ability to render adequate and reliable service to its own customers or its ability to discharge prior commitments. It is expressly recognized, and such tariff may reflect, that the determination whether suffi-cient bulk power or adequate transmission is available to accom-modate a request for full or partial requirements bulk power will consider and recognize that (1) CPL will be engaging in Nothing in this paragraph shall require CPSB or COA to undertake any y action (s) which may be contrary to any state constitutional provision. Appendix C - South Texas -,-y,- .--..,-,-y-,,-,.-...m.-.,m.--,.#, ,,,.-,......m.,---__.. --m.,-

centralized economic dispatch with its affiliates in accord-ance with, and pursuant to the requirements of,.the Public Utility Holding Company Act of 1935, (2) pursuant to such. requirements CPL may first utilize its generating and trans-mission capacity to accomplish such centralized economic dispatch before its generating and tratsmission capacity is made available for full or partial requirements bulk power sales under the tariff, and (3) if other CSW system capacity becomes available by reason of CPL's pa-ticipation in such centralized economic dispatch, then such other CSW system capacity will, at the option of CN, be made available in lieu of CPL's obligation to provide such capacity. Any curtailment of CPL's full or partial requirements sales shall be on a reasonable and non-discrininatory (where possible) ~ basis. (6) (a) In connection with the performance of its obligations herein and subject to the provisions of this paragraph, HLP shall not disconnect from or refuse to connect its then-existing or proposed facilities with the facilities of any Entity used or proposed to be used for the trans-mission of electric energy in interstate commerce by reason of the interstate character of such facilities, and HLP will not prevent any Entity with which it main-tains connections from establishing, maintaining,-modi-fying or utilizing a connection with facilities used or proposed:to be used for the transmission of electric energy in interstate commerce by reason of the inter-state character of such facilities, provided that, anything in these license conditions to the contrary notwithstanding (but subject to s@ paragraph 6(b) and 6(d) below) any Entity seeking to establish, maintain, modify or utilize any connection which could affect the nonjurisdictional status of HLP under the Federal Power Act shall have filed an application with and used its best efforts to obtain an order from the FERC, applicable to HLP under Section 210, 211 and 212 of such Act, requiring the establishment, maintenance, modification or utilization of such connection. In the event that an Entity files an application pursuant to this subparagraph, HPL agrees that it will not unreasonably oppose any such application. In the event such applicati<.n is denied by a valid order of the FERC, any continuing refusal by HLP to estabish, maintain, modify or utilize such connection with such Entity shall be subject to review by the NRC in accordance with the Atomic Energy Act of 1954, as amended, and the rules and regulations thereunder, to determine whether any such refusal would create or maintain a situation inconsistent with the antitrust Appendix C - South Texas l

o 6-laws or the policies thereunder in accordance with the standards set-forth in.Section 105 of such Act; provided that all factual determinations by the FERC on any cost or system reliability reason (s) for any such refusal shall not be subject to redetermination by the NRC. The l burden of proof will be on the HLP in such NRC proceeding. (b) HLP shall not enter into or maintain any agreement or understanding with any other Entity (ies) or Applicant to refuse to deal with another Entity (ies) or Applicant (s) with the purpose of maintaining a non-jurisdictional - status under the Federal Power Act, and in the event - that HPL refuses to make an interconnection with or chooses to disconnect from any Entity (ies), such decision and/or action by HLP will be undertaken unilaterally, not jointly, and without consultation with any other - Entity (ies), provided, however,-that after HLP decides to undertake such action, it may notify any affected Entity of its decision.- (c) In the event that an Entity files an application pursuant to subparagraph (a) of this paragraph solely by reason of HLP's desire to maintain its non-jurisdictional status under the Federal Power Act, HLP agrees to pay such Entity's reasonable expenses in connection with such application and the ensuring proceeding, 2/ provided, however, that HLP shall not be required to pay for any expenses of such Entity of that Entity's application is denied by FERC for reasons advocated by HLP at FERC, and l provided further, that HLP shall not be required to pay l for any costs or expenses of such Entity which that Entity would have incurred had it not failed an applica-tion solely by reason of HLP's desire to maintain its non-jurisdictional status under the Federal Power Act. (d) Nothing in these License Conditions shall impair the right of the Department of Justice or any other Entity, public or private, to file an antitrust action in any l Federal Court in the event any Applicant refuses to establish, maintain, modify or utilize any connection l j with any Entity (ies), provided that nothing herein shall preclude any Applicant from raising any legal or equitable f l defense that may be available to it. l This obligation shall not apply to the expenses of Central and South West i 2/ Corporation or Texas Utilities Company or any of their respective sub-l sidiaries, including but not limited to the expenses of CSW and any of l its subsidiaries incurred in FERC Docket No. EL79-8. Appendix C - South Texas l -,w.-.- -.w ._,,c ,_.,,-y,,,_,myy.,m ,,,.m.,. _ _. _ ,--,%.,m y., ,p-w-,,%.,,.m.....-_.

.;o\\. (7) 'HLP agrees to use its best efforts to amend any agreements with all Entities to ensure that such agreements are not inconsistent with paragraphs (6)(a)-and (6)(b) hereof. (8) If Applicants participate in any future nuclear units other than those which are now under construction or for which an application for a construction permit has been filed, they will afford similar participation to Entities in the South Texas Area on a reasonable basis. (9) Applicants agree that the reliability of power delivered into TIS-ERCOT over DC asynchronous connections shall not be treated differently by the Applicants, for purposes of spinning and installed reserve calculations and requirements, than would be the case if such power originated with TIS-ERCOT. Outages on DC asynchronous connections shall be treated by the Applicants in the same way as losses of generation within TIS-ERCOT. Applicants agree to support the adoption of ~ principles involving DC asynchronous connections contained in this paragraph within any TIS or ERCOST organization. (10) HLP and CPL shall use their best efforts to modify the Offer of Settlement filed in FERC Docket No. EL79-8 to include each of the undertakings set forth in the letter agreement among HLP, Central and South West Corporation, Texas Utilities Company and the FERC staff, dated September 11, 1980. HLP and CPL shall thereafter use their best efforts to secure approval thereof by the FERC, and shall abide by any valid order (s) of the FERC issued purusant to the Offer of Settle-ment. Nothing herein shall preclude the Department of Justice from instituting or intervening in any proceeding at FERC, including Docket No. EL79-8, and from presenting such argu-ments and evidence that it deems appropriate. (11) The foregoing conditions shall be implemented (1) in a manner l consistent with applicable Federal, state and local statutes j and regulations, and (2) subject to any regulatory agency havingjurisdiction. Nothing herein shall preclude the Applicants from seeking an exemption or other relief to which they may be entitled under applicable law or shall be construed as a waiver of their right to contest the applicability of the license conditions with respect to any factual situation. t l' Appendix C - South Texas i a .}}

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