IR 05000528/2007401

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June 11, 2007

Randall K. EdingtonSenior Vice President, Nuclear Mail Station 7602 Arizona Public Service Company P.O. Box 52034 Phoenix, AZ 85072-2034

SUBJECT: PALO VERDE NUCLEAR GENERATING STATION, UNITS 1, 2 AND 3,- NRCSECURITY TEAM INSPECTION REPORT 05000528/2007401; 05000529/2007401; AND 05000530/2007401

Dear Mr. Edington:

On May 17, 2007, the US Nuclear Regulatory Commission (NRC) completed a securitybaseline inspection at your Palo Verde Nuclear Generating Station, Units 1, 2 and 3. 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 May 17. 2007, with Mr. Bob Bement, Vice President of Nuclear Operations, and other members of your staff.The 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. No findings of significance were 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 the NRC's document system, ADAMS.

ADAMS is accessible from the NRC Website at http://www.nrc.gov/reading-rm/adams.html (thePublic Electronic Reading Room). However, because of the security-related concerns contained in the enclosure, and in accordance with 10 CFR 2.390, a copy of this letter's enclosure will not be available for public inspection.

Arizona Public Service Company-2 In accordance with 10 CFR 2.390(b)(1)(ii) the NRC is waiving the affidavit requirements for yourresponse, 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 SafetyDockets: 50-528; 50-529; 50-530Licenses: NPF-41; NPF-51; NPF-74

Enclosure:

NRC Inspection Report 05000528/2007401; 05000529/2007401; 05000530/2007401 w/Attachment - Supplemental Informationcc w/o enclosure:Scott Bauer, Acting General Manager Regulatory Affairs and Performance Improvement Palo Verde Nuclear Generating Station Mail Station 7636 P.O. Box 52034 Phoenix, AZ 85072-2034