ML062090296

License Amendment, Issuance of Amendment Steam Generator Integrity, MC7182, MC7183, MC7184

ML062090296
Person / Time
Site:	Palo Verde
Issue date:	07/27/2006
From:	Fields M B NRC/NRR/ADRO/DORL/LPLIV
To:	Levine J M Arizona Public Service Co
Fields, M B, NRR/DORL/LPD4, 415-3062
Shared Package
ML062090274	List: ML062080621 ML062090296
References
TAC MC7182, TAC MC7183, TAC MC7184
Download: ML062090296 (14)

Text

July 27, 2006Mr. James M. Levine Executive Vice President, Generation

Arizona Public Service Company

P. O. Box 52034

Phoenix, AZ 85072-2034

SUBJECT:

PALO VERDE NUCLEAR GENERATING STATION, UNITS 1, 2, AND 3 -

ISSUANCE OF AMENDMENTS RE: STEAM GENERATOR TUBE INTEGRITY (TAC NOS. MC7182, MC7183, AND MC7184)

Dear Mr. Levine:

The Commission has issued the enclosed Amendment No. 161 to Facility Operating License No. NPF-41, Amendment No. 161 to Facility Operating License No. NPF-51, and Amendment

No. 161 to Facility Operating License No. NPF-74 for the Palo Verde Nuclear Generating

Station, Units 1, 2, and 3, respectively. The amendments consist of changes to the Technical

Specifications (TSs) in response to your application dated May 26, 2005, as supplemented by

letters dated May 23 and June 20, 2006.

These amendments revise TS 1.1, "Definitions,"

TS 3.4.14, "RCS [reactor coolant system]

Operational Leakage," TS 5.5.9, "Steam Generator (SG) Program," and TS 5.6.8, "Steam

Generator Tube Inspection Report," and adds a new specification, TS 3.4.18, "Steam Generator (SG) Tube Integrity." The changes implement the guidance for the industry initiative on Nuclear

Energy Institute 97-06, "Steam Generator Program Guidelines." The changes are also consistent with TS Task Force (TSTF) Change TSTF-449, Revision 4, "Steam Generator Tube

Integrity."

A copy of the related Safety Evaluation is also enclosed. The Notice of Issuance will be included in the Commission's next biweekly Federal Register notice.Sincerely,/RA/Mel B. Fields, Senior Project Manager Plant Licensing Branch IV

Division of Operating Reactor Licensing

Office of Nuclear Reactor Regulation Docket Nos. STN 50-528, STN 50-529, and STN 50-530

Enclosures:

1. Amendment No. 161 to NPF-41

2. Amendment No. 161 to NPF-51

3. Amendment No. 161 to NPF-74

4. Safety Evaluation cc w/encls:See next page July 27, 2006Mr. James M. Levine

Executive Vice President, Generation

Arizona Public Service Company

P. O. Box 52034

Phoenix, AZ 85072-2034

SUBJECT:

PALO VERDE NUCLEAR GENERATING STATION, UNITS 1, 2, AND 3 - ISSUANCE OF AMENDMENTS RE: STEAM GENERATOR TUBE INTEGRITY (TAC NOS. MC7182, MC7183, AND MC7183)

Dear Mr. Levine:

The Commission has issued the enclosed Amendment No. 161 to Facility Operating License No. NPF-41, Amendment No. 161 to Facility Operating License No. NPF-51, and Amendment

No. 161 to Facility Operating License No. NPF-74 for the Palo Verde Nuclear Generating

Station, Units 1, 2, and 3, respectively. The amendments consist of changes to the Technical

Specifications (TSs) in response to your application dated May 26, 2005, as supplemented by

letters dated May 23 and June 20, 2006.

These amendments revise TS 1.1, "Definitions,"

TS 3.4.14, "RCS [reactor coolant system]

Operational Leakage," TS 5.5.9, "Steam Generator (SG) Program," and TS 5.6.8, "Steam

Generator Tube Inspection Report," and adds a new specification, TS 3.4.18, "Steam Generator (SG) Tube Integrity." The changes implement the guidance for the industry initiative on Nuclear

Energy Institute 97-06, "Steam Generator Program Guidelines." The changes are also consistent with TS Task Force (TSTF) Change TSTF-449, Revision 4, "Steam Generator Tube

Integrity."

A copy of the related Safety Evaluation is also enclosed. The Notice of Issuance will be included in the Commission's next biweekly Federal Register notice.Sincerely,/RA/Mel B. Fields, Senior Project Manager Plant Licensing Branch IV

Division of Operating Reactor Licensing

Office of Nuclear Reactor Regulation Docket Nos. STN 50-528, STN 50-529, and STN 50-530

Enclosures:

1. Amendment No. 161 to NPF-41

2. Amendment No. 161 to NPF-51

3. Amendment No. 161 to NPF-74

4. Safety Evaluation cc w/encls:See next page DISTRIBUTIONPUBLICRidsNrrDirsItsb LPLIV r/fRidsAcrsAcnwMailCenter GHillRidsOgcRp RidsNrrDorlLpl4RidsRgn4MailCenter (TPruett)

RidsNrrPMMFieldsRidsNrrDorlDpr RidsNrrLAFeizollahiGMakar, DCI Package No.: ML062090274TS Pages: ML062080621

Accession Number: ML062090296OFFICENRR/LPL4/PMNRR/LPL4/LACSGB/BCITSB/BCOGCNRR/LPL4/BC NAMEMFieldsLFeizollahiAHiserTKobetzAPHodgdonDTerao DATE07/20/0607/20/0607/13/200607/26/0607/25/0607/26/06 OFFICIAL RECORD COPY ARIZONA PUBLIC SERVICE COMPANY, ET AL.

DOCKET NO. STN 50-528 PALO VERDE NUCLEAR GENERATING STATION, UNIT 1 AMENDMENT TO FACILITY OPERATING LICENSE Amendment No. 161 License No. NPF-411.The Nuclear Regulatory Commission (the Commission) has found that:A.The application for amendment by the Ar izona Public Service Company (APS or the licensee) on behalf of itself and the Salt River Project Agricultural

Improvement and Power District, El Paso Electric Company, Southern California

Edison Company, Public Service Company of New Mexico, Los Angeles

Department of Water and Power, and Southern California Public Power Authority

dated May 26, 2005, as supplemented by letters dated May 23, 2006, and

June 20, 2006, 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;B.The facility will operate in conformity with the application, the provisions of the Act, and the rules and regulations of the Commission;C.There is reasonable assurance (i) that the activities authorized by this amendment can be conducted without endangering the health and safety of the

public, and (ii) that such activities will be conducted in compliance with the

Commission's regulations;D.The issuance of this amendment will not be inimical to the common defense and security or to the health and safety of the public; andE.The issuance of this amendment is in accordance with 10 CFR Part 51 of the Commission's regulations and all applicable requirements have been satisfied. 2.Accordingly, the license is amended by changes to the Technical Specifications as indicated in the attachment to this license amendment, and paragraph 2.C(2) of Facility

Operating License No. NPF-41. 3.This license amendment is effective as of the date of issuance and shall be implemented within 150 days of the date of issuance.

FOR THE NUCLEAR REGULATORY COMMISSION

/RA/David Terao, Chief Plant Licensing Branch IV

Division of Operating Reactor Licensing

Office of Nuclear Reactor Regulation

Attachment:

Changes to the Operating License and Technical

Specifications Date of Issuance: July 27, 2006 ARIZONA PUBLIC SERVICE COMPANY, ET AL.

DOCKET NO. STN 50-529 PALO VERDE NUCLEAR GENERATING STATION, UNIT 2 AMENDMENT TO FACILITY OPERATING LICENSE Amendment No. 161 License No. NPF-511.The Nuclear Regulatory Commission (the Commission) has found that:A.The application for amendment by the Ar izona Public Service Company (APS or the licensee) on behalf of itself and the Salt River Project Agricultural

Improvement and Power District, El Paso Electric Company, Southern California

Edison Company, Public Service Company of New Mexico, Los Angeles

Department of Water and Power, and Southern California Public Power Authority

dated May 26, 2005, as supplemented by letters dated May 23, 2006, and

June 20, 2006, 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;B.The facility will operate in conformity with the application, the provisions of the Act, and the rules and regulations of the Commission;C.There is reasonable assurance (i) that the activities authorized by this amendment can be conducted without endangering the health and safety of the

public, and (ii) that such activities will be conducted in compliance with the

Commission's regulations;D.The issuance of this amendment will not be inimical to the common defense and security or to the health and safety of the public; andE.The issuance of this amendment is in accordance with 10 CFR Part 51 of the Commission's regulations and all applicable requirements have been satisfied. 2.Accordingly, the license is amended by changes to the Technical Specifications as indicated in the attachment to this license amendment, and paragraph 2.C(2) of Facility

Operating License No. NPF-51. 3.This license amendment is effective as of the date of issuance and shall be implemented within 150 days of the date of issuance.

FOR THE NUCLEAR REGULATORY COMMISSION

/RA/David Terao, Chief Plant Licensing Branch IV

Division of Operating Reactor Licensing

Office of Nuclear Reactor Regulation

Attachment:

Changes to the Operating License and Technical

Specifications Date of Issuance: July 27, 2006 ARIZONA PUBLIC SERVICE COMPANY, ET AL.

DOCKET NO. STN 50-530 PALO VERDE NUCLEAR GENERATING STATION, UNIT 3 AMENDMENT TO FACILITY OPERATING LICENSE Amendment No. 161 License No. NPF-741.The Nuclear Regulatory Commission (the Commission) has found that: A.The application for amendment by the Arizona Public Service Company (APS or the licensee) on behalf of itself and the Salt River Project Agricultural

Improvement and Power District, El Paso Electric Company, Southern California

Edison Company, Public Service Company of New Mexico, Los Angeles

Department of Water and Power, and Southern California Public Power Authority

dated May 26, 2005, as supplemented by letters dated May 23, 2006, and

June 20, 2006, 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;B.The facility will operate in conformity with the application, the provisions of the Act, and the rules and regulations of the Commission;C.There is reasonable assurance (i) that the activities authorized by this amendment can be conducted without endangering the health and safety of the

public, and (ii) that such activities will be conducted in compliance with the

Commission's regulations;D.The issuance of this amendment will not be inimical to the common defense and security or to the health and safety of the public; andE.The issuance of this amendment is in accordance with 10 CFR Part 51 of the Commission's regulations and all applicable requirements have been satisfied. 2.Accordingly, the license is amended by changes to the Technical Specifications as indicated in the attachment to this license amendment, and paragraph 2.C(2) of Facility

Operating License No. NPF-74. 3.This license amendment is effective as of the date of issuance and shall be implemented within 150 days of the date of issuance.

FOR THE NUCLEAR REGULATORY COMMISSION

/RA/David Terao, Chief Plant Licensing Branch IV

Division of Operating Reactor Licensing

Office of Nuclear Reactor Regulation

Attachment:

Changes to the Operating License and Technical

Specifications Date of Issuance: July 27, 2006 ATTACHMENT TO LICENSE AMENDMENT NOS. 161, 161, AND 161 FACILITY OPERATING LICENSE NOS. NPF-41, NPF-51, AND NPF-74 DOCKET NOS. STN 50-528, STN 50-529, AND STN 50-530 Replace Page 5 of Facility Operating License No. NPF-41 with the attached Page 5.

Replace Page 6 of Facility Operating License No. NPF-51 with the attached Page 6.

Replace Page 4 of Facility Operating License No. NPF-74 with the attached Page 4.

Replace the following pages of the Appendix A Technical Specifications with the attached revised pages. The revised pages are identified by amendment number and contain marginal

lines indicating the areas of change.

REMOVE INSERTiiii1.1-41.1-4 1.1-51.1-5 3.4.14-13.4.14-1 3.4.14-23.4.14-2

---

3.4.18-1

---

3.4.18-2 5.5-65.5-6 5.5-75.5-7 5.5-85.5-8 5.5-95.5-9 5.5-105.5-10 5.5-115.5-11 5.5-125.5-12 5.5-135.5-13 5.5-145.5-14 5.5-155.5-15 5.5-165.5-16 5.6-65.6-6 SAFETY EVALUATION BY THE OFFICE OF NUCLEAR REACTOR REGULATION RELATED TO AMENDMENT NO. 161 TO FACI LITY OPERATING LICENSE NO. NPF-41, AMENDMENT NO. 161 TO FACILITY OPERATING LICENSE NO. NPF-51, AND AMENDMENT NO. 161 TO FACILITY OPERATING LICENSE NO. NPF-74 ARIZONA PUBLIC SERVICE COMPANY, ET AL.

PALO VERDE NUCLEAR GENERATING STATION, UNITS 1, 2, AND 3 DOCKET NOS. STN 50-528, STN 50-529, AND STN 50-53

01.0INTRODUCTION

By application dated May 26, 2005 (Agencywi de Documents and Access Management System (ADAMS) Accession No. ML051520413), Arizona P ublic Service Company (the licensee), requested changes to the Technical Specifications (TSs) for Palo Verde Nuclear Generating

Station (Palo Verde), Units 1, 2, and 3. The licensee provided additional information in letters

dated May 23, 2006 (ML061570210), and June 20, 2006 (ML061780448).

These amendments revise TS 1.1, "Definitions,"

TS 3.4.14, "RCS [reactor coolant system]

Operational Leakage," TS 5.5.9, "Steam Generator (SG) Program," and TS 5.6.8, "Steam

Generator Tube Inspection Report," and adds a new specification, TS 3.4.18, "Steam Generator (SG) Tube Integrity."

The requested changes would revise the existing SG tube surveillance program to be consistent with the Nuclear Regulatory Commission's (NRC) approved TS Task Force (TSTF) Change

TSTF-449, "Steam Generator Tube Integrity," Revi sion 4, and the model safety evaluation (SE) prepared by the NRC and published in the Federal Register on March 2, 2005 (70 FR 10298).

In this regard, the scope of the application includes changes to the definition of leakage, changes to the primary-to-secondary leakage requirements, changes to the SG tube

surveillance program (SG tube integrity), changes to the SG reporting requirements, and

associated changes to the TS Bases.

The May 23, 2006, and June 20, 2006, letters provided additional information that clarified the application, did not expand the scope of the application as originally noticed, and did not change

the staff's original proposed no significant hazards consideration determination as published in

the Federal Register on July 5, 2005 (70 FR 38714).

2.0REGULATORY EVALUATION

The background, description, and applicability of the proposed changes associated with the SG tube integrity issue and the applicable regulatory requirements were included in the NRC

staff's model SE published in the Federal Register on March 2, 2005 (70 FR 10298). The "Notice of Availability of Model Application C oncerning Technical Specification; Improvement To Modify Requirements Regarding Steam Generator Tube Integrity; Using the Consolidated Line Item Improvement Process" was published in the Federal Register on May 6, 2005 (70 FR 24126), which made the model SE available to licensees for use.

3.0TECHNICAL EVALUATION

In its May 26, 2005, application, as supplemented by the letters referenced above, the licensee proposed changes to the TSs that are modeled after TSTF-449. Most of the differences

between TSTF-449 and the licensee's application were minor. These included differences

associated with the facility having a different licensing basis (than that discussed in TSTF-449)

and differences in TS numbering and wording since the licensee has a different TS format (than

that assumed in TSTF-449). Since these differenc es were administrative in nature or they were consistent with the plant's licensing basis, the NRC staff determined they were acceptable.

The remainder of the application was generally consistent with or more conservative than TSTF-449. As a result, the staff determined that the generic SE is applicable to this review and finds

the proposed changes acceptable.

The May 26, 2005, application included a proposal to limit the inspections in the tubesheet (C*

or C-star) for SGs with Alloy 600 tubes. Palo Verde Unit 3 is the only remaining unit at the site

with SGs containing Alloy 600 tubes. This proposal satisfied the licensee's commitment to

modify its TS to have them reflect its tube in spection practices. This commitment was made in a letter dated October 28, 2004 (ML043090485), in response to Generic Letter (GL) 2004-01, "Requirements for Steam Generator Tube Inspections."

During the course of the NRC review of this proposal, the licensee performed the last scheduled inspection of the mill-annealed Alloy 600 tubes in the Unit 3 SGs, which are scheduled for

replacement during the fall 2007 refueling outage. Since the replacement SGs will have

thermally treated Alloy 690 tubes, the licensee determined there was no longer a need to

specify the C* inspection requirements in its TS and, as part of the June 20, 2006, letter, subsequently withdrew that part of the amendment request. In the letters referenced above, the

licensee provided the technical basis for the inspection of tubes within the tubesheet region for

Unit 3. The NRC staff identified no technical concerns with respect to the licensee's approach

to inspecting the tubesheet region in Unit 3.

Conclusion The proposed TS changes establish a programmatic, largely performance-based regulatory framework for ensuring SG tube integrity is maintained. The NRC staff finds that it addresses

key shortcomings of the current framework by ensuring that SG programs are focused on accomplishing the overall objective of maintaining tube integrity. It incorporates performance

criteria for evaluating tube integrity that the NRC staff finds consistent with the structural

margins and the degree of leak tightness assumed in the current plant licensing basis. The

NRC staff finds that maintaining these performance criteria provides reasonable assurance that

the SGs can be operated safely without increase in risk.

The revised TSs will contain limited specific details concerning how the SG Tube Surveillance Program is to achieve the required objective of maintaining tube integrity, the intent being that

the licensee will have the flexibility to determine the specific strategy for meeting this objective. However, the NRC staff finds that the revised TSs include sufficient regulatory constraints on the establishment and implementation of the SG Tube Surveillance Program such as to provide reasonable assurance that tube integrity will be maintained.

Failure to meet the performance criteria will be reportable pursuant to the requirements in 10 CFR 50.72 and 50.73. The NRC reactor oversight process provides a process by which the

NRC staff can verify that the licensee has identified any SG Tube Surveillance Program

deficiencies that may have contributed to such an occurrence and that appropriate corrective

actions have been implemented.

In conclusion, the NRC staff finds that the TS changes proposed by the licensee in its May 26, 2005, application, as supplemented, conform to the requirements of 10 CFR 50.36 and

establish a TS framework that will provide reasonable assurance that SG tube integrity is maintained without undue risk to public health and safety.

4.0STATE CONSULTATION

In accordance with the Commission's regulations, the Arizona State official was notified of the

proposed issuance of the amendment. The State official had no comments.

5.0ENVIRONMENTAL CONSIDERATION

The amendment changes a requirement with respect to installation or use of a facility component located within the restricted area as defined in 10 CFR Part 20 and changes a

surveillance requirement. The NRC staff has determined that the amendment involves no

significant increase in the amounts, and no significant change in the types, of any effluents that

may be released offsite, and that there is no significant increase in individual or cumulative

occupational radiation exposure. The Commission has previously issued a proposed finding

that the amendment involves no significant hazards consideration, and there has been no public

comment on such finding published July 5, 2005 (70 FR 38714). Accordingly, the amendment

meets the eligibility criteria for categorical exclusion set forth in 10 CFR 51.22(c)(9) and 10 CFR

51.22(c)10. Pursuant to 10 CFR 51.22(b) no env ironmental impact statement or environmental assessment need be prepared in connection with the issuance of the amendment.

6.0CONCLUSION

The Commission has concluded, based on the considerations discussed above, that: (1) there is reasonable assurance that the health and safety of the public will not be endangered by

operation in the proposed manner, (2) such activities will be conducted in compliance with the

Commission's regulations, and (3) the issuance of the amendments will not be inimical to the

common defense and security or to the health and safety of the public.

7.0 REFERENCES

A complete list of references used to complete this review can be found in the NRC's model SE published in the Federal Register on March 2, 2005 (70 FR 10298).

Principal Contributor: G. Makar

Date: July 27, 2006 Palo Verde Generating Station, Units 1, 2, and 3 cc: March 2006 Mr. Steve Olea Arizona Corporation Commission

1200 W. Washington Street

Phoenix, AZ 85007 Mr. Douglas Kent Porter Senior Counsel

Southern California Edison Company

Law Department, Generation Resources

P.O. Box 800

Rosemead, CA 91770 Senior Resident Inspector U.S. Nuclear Regulatory Commission

P. O. Box 40

Buckeye, AZ 85326 Regional Administrator, Region IV U.S. Nuclear Regulatory Commission

Harris Tower & Pavillion

611 Ryan Plaza Drive, Suite 400 Arlington, TX 76011-8064 Chairman Maricopa County Board of Supervisors

301 W. Jefferson, 10th Floor

Phoenix, AZ 85003 Mr. Aubrey V. Godwin, Director Arizona Radiation Regulatory Agency

4814 South 40 Street

Phoenix, AZ 85040 Mr. Craig K. Seaman, General Manager Regulatory Affairs and

Performance Improvement

Palo Verde Nuclear Generating Station

Mail Station 7636

P.O. Box 52034

Phoenix, AZ 85072-2034 Mr. Matthew Benac Assistant Vice President

Nuclear & Generation Services

El Paso Electric Company

340 East Palm Lane, Suite 310

Phoenix, AZ 85004 Mr. John Taylor Public Service Company of New Mexico

2401 Aztec NE, MS Z110

Albuquerque, NM 87107-4224 Mr. Thomas D. Champ Southern California Edison Company

5000 Pacific Coast Hwy Bldg D1B

San Clemente, CA 92672 Mr. Robert Henry Salt River Project

6504 East Thomas Road

Scottsdale, AZ 85251 Mr. Jeffrey T. Weikert Assistant General Counsel

El Paso Electric Company

Mail Location 167

123 W. Mills El Paso, TX 79901 Mr. John Schumann Los Angeles Department of Water & Power

Southern California Public Power Authority

P.O. Box 51111, Room 1255-C

Los Angeles, CA 90051-0100 Mr. Brian Almon Public Utility Commission

William B. Travis Building

P. O. Box 13326

1701 North Congress Avenue Austin, TX 78701-3326 Palo Verde Generating Station, Units 1, 2, and 3 cc:- 2 -March 2006 Ms. Karen O'Regan Environmental Program Manager

City of Phoenix

Office of Environmental Programs

200 West Washington Street

Phoenix AZ 85003