IR 05000275/2007401

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SAFEGUARD INFORMATIONWARNING: Violation of Section 147 of the AtomicEnergy Act, protection requirements for "SAFEGUARDSINFORMATION," is subject to civil and criminal penalties.Safeguards Information determination made by:Name/Title Michael P. Shannon Organization PSB/DRS/RIV Basis 10 CFR 73 Signature /RA/ Date 8/20/07 Document transmitted herewith contains . Whenseparated from enclosure(s) or attachment(s), this document is decontrolled.SAFEGUARD INFORMATIONAugust 20, 2007John Senior Vice President - Generation and Chief Nuclear Officer Pacific Gas and Electric Company P.O. Box 770000 Mail Code B32 San Francisco, CA 94177-0001

SUBJECT: DIABLO CANYON POWER PLANT, UNITS 1 AND 2 - NRC SECURITYINSPECTION REPORT 05000275/2007401; 05000323/2007401.

Dear Mr. Keenan:

On July 19, 2007, the US Nuclear Regulatory Commission (NRC) completed a security baselineinspection at your Diablo Canyon Power Plant, Units 1 and 2. The inspection covered one or more of the key attributes of the security cornerstone of the NRC's Reactor Oversight Process.

The enclosed inspection report documents the inspection results which were discussed on July 19, 2007, with Donna Jacobs, Vice President, Nuclear Services, and other members of your staff.This inspection examined activities conducted under your license as they relate to security andcompliance with the Commission's rules and regulations and with the conditions of your license.

The inspectors reviewed selected procedures and records, observed activities, and interviewed personnel.

Pacific Gas and Electric Company-2-SAFEGUARD INFORMATIONDocument transmitted herewith contains . Whenseparated from enclosure(s) or attachment(s), this document is decontrolled. This report documents two findings of very low security significance (i.e., Green as determinedby the Physical Protection Significance Determination Process). The deficiencies were promptly corrected or compensated for, and the plant was in compliance with applicable physical protection and security requirements within the scope of this inspection before the inspector left the site. NRC is treating these violations as non-cited violations (NCVs) consistent with Section VI.A.1 ofthe NRC Enforcement Policy because of the very low security significance of the violations and because they were entered into your corrective action program. If you contest these non-cited violations, you should provide a response within 30 days of the date of this inspection report, with the basis for your denial, to the Nuclear Regulatory Commission, ATTN.: Document Control Desk, Washington DC 20555-001: with copies to the Regional Administrator Region IV; the Director, Office of Enforcement, United States Nuclear Regulatory Commission, Washington, DC 20555-001; and the NRC Resident Inspector at the Diablo Canyon Power Plant. The findings were both NRC-identified and licensee-identified.

In accordance with 10 CFR 2.390 of the NRC's "Rules of Practice," a copy of this letter will beavailable electronically for public inspection in the NRC Public document Room or from the Publicly Available Records (PARS) component of NRC's document system, ADAMS. ADAMS is accessible from the NRC Website at http://www.nrc.gov/reading-rm/adams.html (the PublicElectronic Reading Room). However, because of the security-related concerns contained in theenclosure, and in accordance with 10 CFR 2.390, a copy of this letter's enclosure will not be available for public inspection. In accordance with 10 CFR 2.390(b)(1)(ii), the NRC is waiving the affidavit requirements foryour response, if any. This practice will ensure that your response will not be made availableelectronically for public inspection in the NRC Public Document Room or from the NRC's document system ADAMS. If Safeguards Information is necessary to provide an acceptable response, please provide the level of protection described in 10 CFR 73.21. Otherwise, mark your entire response Security Related Information - Withhold under 10 CFR 2.390" and follow the instructions for withholding in 10 CFR 2.390(b)(1).

Sincerely,/RA/Michael P. Shannon, ChiefPlant Support Branch Division of Reactor Safety Pacific Gas and Electric Company-3-SAFEGUARD INFORMATIONDocument transmitted herewith contains . Whenseparated from enclosure(s) or attachment(s), this document is decontrolled. Docket Nos.: 50-27550-323License Nos.: DPR-80DPR-82Nonpublic

Enclosure:

Inspection Report 05000275/2007401 and 05000323/2007401

w/Attachment:

Supplemental Information cc w/o enclosure:James R. Becker, Vice President Diablo Canyon Operations and Station Director, Pacific Gas and Electric Company Diablo Canyon Power Plant P.O. Box 56 Avila Beach, CA 93424Jennifer Post, Esq.Pacific Gas and Electric Company P.O. Box 7442 San Francisco, CA 94120