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Category:SAFETY EVALUATION REPORT--LICENSING & RELATED ISSUES
MONTHYEARML20211A9791999-08-20020 August 1999 Safety Evaluation Granting Licensee Request for Approval of Proposed Relief from Volumetric Exam Requirements of ASME B&PV Code,Section Xi,For Plant,Unit 2 ML20209E4361999-07-0909 July 1999 SER Agreeing with Licensee General Interpretation of TS LCO 3.0.6,but Finds No Technical Basis or Guidance That Snubbers Could Be Treated as Exception to General Interpretation ML20196K6631999-07-0707 July 1999 Safety Evaluation Supporting Licensee 990520 Position Re Inoperable Snubbers ML20206P5201999-05-14014 May 1999 Safety Evaluation Accepting GL 96-05, Periodic Verification of Design-Basis Capability of Safety-Related Motor-Operated Valves ML20205S5551999-04-21021 April 1999 Safety Evaluation Accepting Response to GL 96-06, Assurance of Equipment Operability & Containment Integrity During Design Basis Accident Conditions ML20205N3651999-04-12012 April 1999 Safety Evaluation Accepting IPE of External Events Submittal ML20196J8351998-12-0808 December 1998 Safety Evaluation Granting Relief Request Re Relief Valves in Diesel Generator Fuel Oil Sys ML20196C0251998-11-27027 November 1998 SER Accepting Clarification on Calibration Tolerances on Trip Setpoints for Catawba Nuclear Station ML20196A6881998-11-25025 November 1998 Safety Evaluation Granting Relief Request 98-02 Re Limited Exam for Three Welds ML20247M0861998-05-21021 May 1998 SER Accepting 1997 Rev to Catawba UFSAR Submitted on 970925. Rev Added Analysis for Postulated Accident Involving Dropping of Sf Pool Weir Gate Onto Sf Assemblies ML20216E1771998-04-13013 April 1998 Safety Evaluation Accepting Relief Request 98-01 for Catawba Nuclear Station Units 1 & 2 from Requirements of ASME Boiler & PV Code for Second 10-year Interval Program for Inservice Testing of Pumps & Valves ML20217M4211998-04-0303 April 1998 Safety Evaluation Approving Request for Relief 97-04, non-code Repair Valves.Relief Granted Retroactively to Unit 1 & Expired Dec 1997.Relief for Unit 2 Will Expire at End of Cycle 9 Outage or Next Scheduled Outage Exceeding 30 Days ML20199A5521998-01-22022 January 1998 Safety Evaluation Re Licensee Response to GL 95-07, Pressure Locking & Thermal Binding of Safety-Related Power Operated Gate Valves, for Cns,Units 1 & 2 ML20199A6421998-01-22022 January 1998 Safety Evaluation Accepting Proposed EALs Changes for Plant, Units 1 & 2.Concludes That Changes Consistent W/Guidance in NUMARC/NESP-007,w/variations as Identified & Accepted in Review & Meets Requirements of 10CFR50.47(b)(4) ML20198P9641998-01-15015 January 1998 SE Granting Relief Request 97-03 for Second 10-yr Interval Inservice Insp Program ML20198R9951997-10-30030 October 1997 Safety Evaluation Authorizing Request for Approval of Alternative to Exam Requirement of Reactor Vessel Shell Weld,Per 10CFR50.55a(g)(6)(ii)(A)(5) ML20198J7651997-10-15015 October 1997 Safety Evaluation Accepting 10-yr Interval Insp Program Plan Alternatives for Listed Plants Units ML20211F8801997-09-22022 September 1997 Safety Evaluation Supporting Second ten-year Interval Inservice Inspection Program Plan & Associated Requests for Relief for Catawba Nuclear Station Unit 1 ML20149K8281997-07-29029 July 1997 SER Granting Request for Exemption from Requirements of 10CFR70.24 for Units 1 & 2 ML20141E1121997-06-16016 June 1997 Safety Evaluation Approving Licensee Position That UFSAR Table 6-77 Be Revised to Identify SA-1 & SA-4 Instead of SA-3 & SA-6 as Containment Isolation Valves ML20148H2501997-06-0505 June 1997 Safety Evaluation Accepting Proposed Restructuring of Util Through Acquisition Of,& Merger W/Panenergy Corp ML20141G6701997-05-20020 May 1997 Safety Evaluation Accepting Proposed Alternative Use of TS Requirement for Code Class Snubbers ML20135B3051997-02-27027 February 1997 Safety Evaluation Granting Second 10 Yr ISI Program Plan & Associated Requests for Relief ML20134P2421997-02-20020 February 1997 Safety Evaluation Accepting TR BAW-10199P for Ref in Plants Licensing Documentation & Use in Licensing Applications ML20134L4081996-11-19019 November 1996 SER Accepting Performance of Plant Standby Nuclear Svc Water Pond ML20134G5551996-11-0707 November 1996 Safety Evaluation Accepting Proposed Application of BWU-Z CHF Correlation for Plants Mark-BW 17x17 Type Fuel ML20129E4851996-10-0101 October 1996 Safety Evaluation Recommending That Relief Request 96-02 Be Granted,Per 10CFR50.55a(g)(6)(i),per Request ML20056D9611993-07-30030 July 1993 SER Accepting Licensee 930325-0429 Submittals of Technical Info to Support Continued Operation of Facility for Remainder of Fuel Cycle 7 ML20055H9151990-07-27027 July 1990 Safety Evaluation Accepting Actions Taken to Resolve NRC Bulletin 88-002, Rapidly Propagating Fatigue Cracks in Steam Generators Tubes ML20248C0731989-08-0303 August 1989 Sser Accepting 880601,0909 & 890602 Changes to ATWS Mitigation Sys Actuation Circuitry for Plants ML20246L4221989-05-12012 May 1989 Safety Evaluation Supporting Revs 15 & 6 to Pump & Valve Inservice Testing Program & Relief Requests ML20150C2651988-06-28028 June 1988 Safety Evaluation Supporting Licensee Assessment to Fracture Toughness Requirements for Protection Against PTS Events,Per 10CFR50.61 ML20150C2611988-06-28028 June 1988 Safety Evaluation Supporting Licensee Assessment to Fracture Toughness Requirements for Protection Against PTS Events,Per 10CFR50.61 ML20154H2171988-05-18018 May 1988 Safety Evaluation Accepting Util 880414 Submittal Re Reload Startup Physics Test Program ML20148H1001988-01-22022 January 1988 Safety Evaluation Supporting Util 871113 Proposed Tech Spec Changes Reflecting Unit 2 Cycle 2 Refueling & Addition of Boron Dilution Mitigation Sys for Unit 2 ML20236M9631987-11-0606 November 1987 Safety Evaluation Accepting Util Proposed ATWS Mitigating Sys Actuation Circuitry for Facilities,Per 10CFR50.62(c)(1) & Pending Final Resolution of Tech Spec Issue ML20236D4451987-09-30030 September 1987 SER Re Licensee 870814 & 21 Responses Re Single Failure Potential in Nuclear Svc Water Sys.Nuclear Svc Water Sys Meets Requirements of GDC 5 & 44 Re Sharing & Provisions for Suitable Redundancy in Cooling Water Sys ML20236F5881987-07-29029 July 1987 Safety Evaluation Supporting Util 831104,841102,1231 & 851203 Responses to Items 3.1.1,3.1.2,3.2.1,3.2.2 & 4.5.1 of Generic Ltr 83-28 ML20215D2701987-06-11011 June 1987 SER Accepting Rev 13 to Unit 1 & Rev 4 to Unit 2 Pump & Valve Inservice Testing,Per Generic Ltr 83-28,Item 2.1 (Part 2) ML20214T4061987-06-0202 June 1987 Safety Evaluation Supporting Util 860424 Submittal Re Turbine Sys Maint Program for Early Detection of Cracking in Low Pressure Turbine Wheels ML20214M3361987-05-22022 May 1987 Safety Evaluation Supporting Util Rept Entitled, Rod Swap Methodology Rept for Startup Physics Testing ML20209B1511987-01-28028 January 1987 SER Supporting Util Responses to Generic Ltr 83-28,Item 4.5.2 Re Reactor Trip Sys on-line Testing ML20207Q5851987-01-15015 January 1987 SER Re Generic Ltr 83-28,Item 2.1 (Part 2) Concerning Vendor Interface Programs for Reactor Trip Sys Components.Util Response Acceptable.Item Closed ML20207N3011987-01-0808 January 1987 Safety Evaluation on Util 830309 & 851025 Requests for Relief from 10CFR50.55a Requirements Re Pump & Valve Inservice Testing Program.Relief Granted W/Listed Exceptions ML20207P6341986-08-31031 August 1986 Safety Evaluation Accepting Util 851120 & 860324 Proposals to Eliminate Arbitrary Intermediate Pipe Breaks in Select List of High Energy Piping Sys ML20199L3941986-07-0202 July 1986 SER Providing Final Conclusions & Recommendations from Evaluation of Tdi Owners Group Program to Validate & Update Quality of Tdi Diesel Generators ML20211E4251986-06-10010 June 1986 Draft SER Re Util 850624 Response to Generic Ltr 83-28,Items 4.1,4.2.1 & 4.2.2 Re Preventive Maint Program for Reactor Trip Breakers/Maint & Trending.Position on Item 4.1 Acceptable.Position on Items 4.2.1 & 4.2.2 Unacceptable ML20207T4241985-12-30030 December 1985 SER Re SPDS Based on Documentation & 850513-15 Audit.Spds Does Not Fully Meet Requirements of Suppl 1 to NUREG-0737. Five Listed Variables Should Be Added to Spds.Interim Implementation Acceptable ML20138M9011985-12-17017 December 1985 Draft SER on Util 850329 Response to 841003 Request for Addl Info Re Hydrogen Control Measures for Plant.Addl Info & Analyses Required Re Effect of Upper Compartment Burns on Air Return Fan ML20128F9921985-06-21021 June 1985 SER Based on Util 831104 Response to Generic Ltr 83-28,Item 1.1 Re post-trip Review Program Description & Procedures. Program & Procedures Acceptable 1999-08-20
[Table view] Category:TEXT-SAFETY REPORT
MONTHYEARML20217H0201999-09-30030 September 1999 Monthly Operating Repts for Sept 1999 for Catawba Nuclear Station,Units 1 & 2 ML20216E5401999-09-0707 September 1999 Special Rept:On 990826,discovered That Meteorological Sys Upper Wind Speed Cup Set Broken,Causing Upper Wind Channel to Be Inoperable.Cup Set Replaced & Channel Restored to Operable Status on 990826 ML20212B4711999-08-31031 August 1999 Monthly Operating Repts for Aug 1999 for Catawba Nuclear Station,Units 1 & 2 ML20217H0321999-08-31031 August 1999 Revised Monthly Operating Rept for Aug 1999 for Catawba Nuclear Station,Units 1 & 2 ML20211B1281999-08-31031 August 1999 Dynamic Rod Worth Measurement Using Casmo/Simulate ML20211A9791999-08-20020 August 1999 Safety Evaluation Granting Licensee Request for Approval of Proposed Relief from Volumetric Exam Requirements of ASME B&PV Code,Section Xi,For Plant,Unit 2 ML20211F3441999-08-17017 August 1999 Updated non-proprietary Page 2-4 of TR DPC-NE-2009 ML20211C1291999-08-17017 August 1999 ISI Rept Unit 1 Catawba 1999 RFO 11 ML20210R1051999-08-0606 August 1999 Special Rept:On 990628,cathodic Protection Sys Was Declared Inoperable After Sys Did Not Pass Acceptance Criteria of Bimonthly Surveillance.Work Request 98085802 Was Initiated & Connections on Well Anode Were Cleaned or Replaced ML20210S2891999-07-31031 July 1999 Monthly Operating Repts for July 1999 for Catawba Nuclear Station,Units 1 & 2 ML20212B4871999-07-31031 July 1999 Revised Monthly Operating Rept for July 1999 for Catawba Nuclear Station,Units 1 & 2 ML20209E4361999-07-0909 July 1999 SER Agreeing with Licensee General Interpretation of TS LCO 3.0.6,but Finds No Technical Basis or Guidance That Snubbers Could Be Treated as Exception to General Interpretation ML20196K6631999-07-0707 July 1999 Safety Evaluation Supporting Licensee 990520 Position Re Inoperable Snubbers ML20210S2951999-06-30030 June 1999 Revised Monthly Operating Rept for June 1999 for Catawba Nuclear Station,Units 1 & 2 ML20209H4501999-06-30030 June 1999 Monthly Operating Repts for June 1999 for Catawba Nuclear Station,Units 1 & 2 ML20209H4561999-05-31031 May 1999 Revised Monthly Operating Rept for May 1999 for Catawba Nuclear Station,Units 1 & 2 ML20206T4771999-05-31031 May 1999 Rev 3 to UFSAR Chapter 15 Sys Transient Analysis Methodology ML20196L1881999-05-31031 May 1999 Non-proprietary Rev 1 to DPC-NE-3004, Mass & Energy Release & Containment Response Methodology ML20196A0001999-05-31031 May 1999 Monthly Operating Repts for May 1999 for Catawba Nuclear Station,Units 1 & 2 ML20206P5201999-05-14014 May 1999 Safety Evaluation Accepting GL 96-05, Periodic Verification of Design-Basis Capability of Safety-Related Motor-Operated Valves ML20206N8391999-05-0404 May 1999 Rev 16 to CNEI-0400-24, Catawba Unit 1 Cycle 12 Colr ML20206R1811999-04-30030 April 1999 Monthly Operating Repts for Apr 1999 for Catawba Nuclear Station,Units 1 & 2 ML20196A0041999-04-30030 April 1999 Revised Monthly Operating Repts for Apr 1999 for Catawba Nuclear Station,Units 1 & 2 ML20206N8261999-04-22022 April 1999 Rev 15 to CNEI-0400-24, Catawba Unit 1 Cycle 12 Colr. Page 145 of 270 of Incoming Submittal Not Included ML20205S5551999-04-21021 April 1999 Safety Evaluation Accepting Response to GL 96-06, Assurance of Equipment Operability & Containment Integrity During Design Basis Accident Conditions ML20205N3651999-04-12012 April 1999 Safety Evaluation Accepting IPE of External Events Submittal ML18016A9011999-04-12012 April 1999 Part 21 Rept Re Defect in Component of DSRV-16-4,Enterprise DG Sys.Caused by Potential Problem with Connecting Rod Assemblies Built Since 1986,that Have Been Converted to Use Prestressed Fasteners.Affected Rods Should Be Inspected ML20206R1931999-03-31031 March 1999 Revised Monthly Operating Repts for Apr 1999 for Catawba Nuclear Station,Units 1 & 2 ML20205P9521999-03-31031 March 1999 Monthly Operating Repts for Mar 1999 for Catawba Nuclear Station,Units 1 & 2 ML20205P9561999-02-28028 February 1999 Revised Monthly Operating Repts for Feb 1999 for Catawba Nuclear Station,Units 1 & 2 ML20204C9111999-02-28028 February 1999 Monthly Operating Repts for Feb 1999 for Catawba Nuclear Station,Units 1 & 2 ML20203A2581999-02-0505 February 1999 Safety Evaluation of TR DPC-NE-3002-A,Rev 2, UFSAR Chapter 15 Sys Transient Analysis Methodology. Rept Acceptable. Staff Requests Duke Energy Corp to Publish Accepted Version of TR within 3 Months of Receipt of SE ML20204C9161999-01-31031 January 1999 Revised Monthly Operating Repts for Jan 1999 for Catawba Nuclear Station,Units 1 & 2 ML20199K8711999-01-13013 January 1999 Inservice Insp Rept for Unit 2 Catawba 1998 Refueling Outage 9 ML20199E3071998-12-31031 December 1998 Monthly Operating Repts for Dec 1998 for Catawba Nuclear Station,Units 1 & 2 ML20216F9931998-12-31031 December 1998 Piedmont Municipal Power Agency 1998 Annual Rept ML20205E9441998-12-31031 December 1998 1998 10CFR50.59 Rept for Catawba Nuclear Station,Units 1 & 2, Containing Brief Description of Changes,Tests & Experiments,Including Summary of Ses.With ML20206P2081998-12-31031 December 1998 Special Rept:On 981218,inoperability of Meteorological Monitoring Instrumentation Channels,Was Observed.Caused by Data Logger Overloading Circuit.Replaced & Repaired Temp Signal Processor ML20203A4101998-12-22022 December 1998 Rev 16 to CNEI-0400-25, Catawba Unit 2 Cycle 10 Colr ML20203A4041998-12-22022 December 1998 Rev 14 to CNEI-0400-24, Catawba Unit 1 Cycle 11 Colr ML20198B1341998-12-14014 December 1998 Revised Special Rept:On 980505,discovered That Certain Fire Barriers Appeared to Be Degraded.Caused by Removal of Firestop Damming Boards.Hourly Fire Watches Established in Affected Areas ML20196J8351998-12-0808 December 1998 Safety Evaluation Granting Relief Request Re Relief Valves in Diesel Generator Fuel Oil Sys ML20199E3221998-11-30030 November 1998 Revised MOR for Nov 1998 for Catawba Nuclear Station,Units 1 & 2 Re Personnel Exposure ML20198E3151998-11-30030 November 1998 Monthly Operating Repts for Nov 1998 for Catawba Nuclear Station,Units 1 & 2 ML20196C0251998-11-27027 November 1998 SER Accepting Clarification on Calibration Tolerances on Trip Setpoints for Catawba Nuclear Station ML20196A6881998-11-25025 November 1998 Safety Evaluation Granting Relief Request 98-02 Re Limited Exam for Three Welds ML20196D4041998-11-19019 November 1998 Rev 1 to Special Rept:On 980618,determined That Method Used to Calibrate Wind Speed Instrumentation Loops of Meteorological Monitoring Instrumentation Sys Does Not Meet TS Definition for Channel Calibration.Procedure Revised ML20195E5521998-10-31031 October 1998 Monthly Operating Repts for Oct 1998 for Catawba Nuclear Station,Units 1 & 2 ML20198E3261998-10-31031 October 1998 Revised Monthly Operating Repts for Oct 1998 for Catawba Nuclear Station,Units 1 & 2 ML20154M7661998-10-12012 October 1998 LER 98-S01-00:on 980913,terminated Vendor Employee Entered Protected Area.Caused by Computer Interface Malfunction. Security Retained Vendor Employee Badge to Prevent Further Access & Computer Malfunction Was Repaired.With 1999-09-07
[Table view] |
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CCT 191973 I
Q -
SAFETY EVALUATION s
4 Suoporting Amendment No. 1 to CPPR-117 l'
Introduction _
i
- On August 7, 1975,' Construction Permit CPPR-ll7 was issued to the Duke Power By its lett e j Company (Duke) for the Catawba Nuclear Station Unit 2 (Catawba-2).
of May 15, 1978, Duke transmitted an " Application for Amendment of. Construction Pennit No. CPPR-ll7 Adding Co-owners" by Duke and the North Carolina Municipal Power Agency.No.1 (NCMPA-1) requesting amendment of CPPR-il7 to include NCMP
! Information regarding NCMPA-1 and terms of the owner-as a co-owner of Catawba-2.
ship agreement are described' below.
The application states that Duke will retain exclusive responsibility for the l design, construction, and operation of Catawba-2, and l Thewill be solelyfurther application responsible for communications with the NRC related to Catawba-2.
i states that NCMPA-1 is.not owned, controlled, or dominated by an alien,. a foreign In the application, NCMPA agrees that corporation, or foreign government.it will not permit any individual to have a i
NRC has determined that such access will not endanger the common defense and security.
l In accordance with ALAB-459 (Marble Hill), February 16, 1978, which held that co-owners will also be deemed to be co-applicants, this application for amendment is construed to include NCMPA-1 as a co-applicant as well as a co-owner.
Analysis i
We have reviewed the application for Amendment No. I to CPPR-il7 and conclude that since Duke will retain full and complete responsibility for the design, construction, and operation of Catawba-2, addition of a co-owner would not involve a significant hazards consideration inasmuch as it does not involve an increase in the probability of an accident, an increase in the consequences of an accident, or a decrease in safety margins. We therefore conclude that j
i the activities authorized by this amendment would not constitute an unreason-able risk to the health and safety of the public.
l Since the application.for amendment states that NCMPA-1 is not owned, con
- or dominated by an alien, a foreign corporation, or a foreign government, we conclude from our review that the activities authorized by this amendment wo not be inimical to the common defense and security.
l We have evaluated the financial qualifications of NCMPA-1 to participate with I Duke as co-owners of Catawba-2 as presented below.
i
' 7811C10o55
General The NRC regulations relating to the determination of an applicant's financial qualifications appear in Section 50.33(f) and Appendix C to 10 CFR Part 50.
These regulations state that there must be reasonable assurance that an applicant can obtain the necessary funds to cover the estimated construction costs of a proposed nuclear power plant and its related fuel cycle costs. This standard of reasonable assurance, however, must be viewed in light of the extended period of time from the start of construction to the date of commercial operation. The date for commercial operation of the proposed Catawba facility is estimated to be July 1983. Consequently, we must make certain basic assumptions in our financial analysis about future conditions. Our analysis of financial qualifications assumes that there will be rational regulatory policies with respect to the setting of rates and that viable capital markets will exist. The former assumption implies that rates will be set by the appropriate regulatory agencies to at least cover the cost of service,1ncluding the cost of capital. The latter assumption implies that capital will be available at some price. Given these fundamental assumptions, our evaluation is then focused on the reasonableness of the applicant's financial planning.
Duke has submitted financial information in support of its application. The following analysis summarizes our review of the information, and gives the qualifications of the applicant to finance its share of the costs of the ,
design and construction of the proposed Catawba facility. I Construction Cost Estimates The most recent cost estimates for the Catawba facility are provided in Duke's letter of September 11, 1978. The cost estimates are summarized as follows:
(Millions of dollars)
Total nuclear production plant costs $1,346.4 Transmission, distribution, and general plant costs 31.0 Nuclear Fuel inventory for the first core 180.7 Total $1,558.1 We have compared the cost of the proposed nuclear production plant estimated above with the cost projected by the costing model (CONCEPT) developed by the Department of Energy. This analytical model projected the cost of the
Catawba facility to be $1,818.0 million, compared with Duke's estimate of l
$1,558.1 million. The CONCEPT estimates are based on industry-wide costs and take into account items of overhead and other costs that are generally found in the construction of a facility. Duke designs and constructs all of I its own facilities, thereby eliminating many of the items of overhead incurred by other utilities. This accounts for Duke's costs being significantly lower than the CONCEPT estimates. Since the CONCEPT model is used here primarily l as a rough check of the cost estimate made by an applicant and is not intended to be a substitute for detailed engineering cost estimates, we conclude that it is reasonable to use Duke's estimate in our financial analysis.
Source of Construction Funds The ownership, costs, and electrical output of Catawba Nuclear Station Unit 2 will be shared according to the following percentages:
1
- Duke Power Company 25%
North Carolina Municipal Power Agency-1 75%
The percent allocation is based on the proposed purchase agreement, which will be executed at the time that the amendment to the construction permit is approved by NRC. Additionally, under the terms of this agreement, NCMPA-1 will own 37.5% of the support facilities in the Catawba Nuclear Station. Duke will continue to have exclusive responsibility for the design, construction, 4
operation, maintenance, and disposal of the entire facility and will act as agent for the other owners in these matters.
Financial Aanalysis NCMPA-1 is a corporate entity and an instrumentality of the Statri of North Carolina, incorporated under North Carolina statutes on January 19, 1976.
It was created to plan, develop, construct, and operate generation and trans- I mission facilities and has been granted the necessary powers to carry out such ,
purposes. Figure 1 and Table 1 set forth the service area and the member municipalities that make up the Agency.
NCMPA-1 has entered into a Purchase and Ownership Participation Agreement, l which transfers a 75% ownership interest in the Catawba Nuclear Facility Unit 2 to the Agency. Under the terms of this agreement, a 37.5% ownership interest in the support facilities for the entire Catawba Nuclear Generating Station will also be transferred to NCMPA-1. At closing, NCMPA-1 will pay ;
Duke for its ownership share of the total costs of materials and construction completed to date. In addition, Duke will be reimbursed for fees as profit for its design, licensing, and construction expense. After closing and until l the commercial operation of Catawba Nuclear Station, Unit 2, NCMPA-1, on a monthly basis, will pay to Duke an amount equal to 75% of additional costs l incurred for Catawba Nuclear Station, Unit 2, plus 37.5% of the support facilities l for the entire station. l l
w _ _ . - _ _ _ _ _ _ _ _ - - _ _ _ _ _ _ _ _ _ _ _ - - _ _ _ _ _ _ _ _ - - -
1 MCMPA-1 intends to issue and sell its electric revenue bonds in amounts sufficient to finance its ownership interest in the Catawba Nuclear Station Unit 2. Initial startup expense is being provided by member participants, subject to reimbursement out of the proceeds of the bond issue. Table 2 sets l forth the timing of the bond issue and schedule of payments to be made. i NCMPA-1 will issue a total of $848 million of its revenue bonds to finance !
its participation in this project.
The State of North Carolina by law has agreed that it will not limit or alter the rights of any participant of the power agency to establish rates l to fulfill the terms of any agreement for the Catawba Project so long as any bonds of the power agency are outstanding and unpaid. The power sales contracts between NCMPA-1 and its participants provide that rates charged by NCMPA-1 shall be designed (and adjusted when necessary) to cover all costs 1 of operation, including amounts required to pay debt service and provide for the eventual retirement of its bonds. Revenues of NCMPA-1 under the power sales contract will be pledged as security for the bonds. The contracts further provide that each participant must take or pay for its entitlement share of power from the Catawba Nuclear Station Unit 2.
Bonds of NCMPA-1 for financing the project will be approved and sold by the Local Government Commission of the State of North Carolina. The Commission supervises and approves all aspects of the fiscal control and debt issuance process for local governments, including the issuance and sale of bonds.
Conclusion Based on our analysis, we have concluded that the financing plan of NCMPA-1 provides reasonable assurance that funds can be obtained to finance its share of the Catawba Nuclear Station Unit 2. We have determined that the North Carolina Municipal Power Agency-1 is financially qualified to participate in the design and construction of the Catawba Nuclear Station Unit 2 in the ratio of their percentage of participation as set forth above. This conclusion is based on the determination that NCMPA-1 has reasonable assurance of obtaining the required capital funds through its revenue bonding method of financing.
Because of the lengthy future period involved, our conclusion necessarily assumes that viable capital markets will exist. This implies that capital will be available at some price. Furthermore, NCMPA-1 and its participants have the authority delegated to them by the State of North Carolina to charge rates required to fulfill the terms of agreements supporting the Catawba Project.
We will require as a condition of the amendment, submittal as soon as possible of: (1) copies of the executed Purchase and Ownership Agreement for Catawba Unit 2, (2) copies of the executed Power Sales Agreements between the parti-cipants and the North Carolina Power Agency-1, (3) evidence that the Local Government Commission has approved the issuance and sale of bonds supporting the Ownership and Purchase Agreement.
SAFETY CONCLUSIONS For reasons stated in the above analysis, we conclude that activities authorized a
by this amendment (1) do not involve a significant hazards consideration; (2) would not constitute an unreasonable risk to the health and safety of the public; and (3) are not inimical to the comon defense and security.
Based on our evaluation of financial information provided in the application for the amendment as sumarized in the above analysis, we conclude that there ,
is reasonable assurance that NCMPA-1 is financially qualified to participate in the ownership of Catawba-2.
e l
. 1- -
Harley[iver,ProjectManager
- ' Light i er Reactors Branch No. 4 Di ision of Project Management pA l/l
'a'r a
' Light Water Reactors. Branch No. 4 Division of Project Management Attachments (3) i i
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OCT 101973 1
i 1
FIGURE 1 *~
M CMBERS OF NORTil CAROLINA MUNICIPAL -
POWER AGEllCY NUM11ER 1 .
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POWEll AGENCY NilM11ER 1 1 - AL11EM AR LE 11 - LANDIS 2 - 110STIC ,12 - LEXINGTON j 3 - CIIERItYV!LLE 13 - LINCOLNTON 4 - CONCOllD 14 - M AIDEN 5 - COtttJELIUS IS - MONitOE PRIV ATE POW ER COM PANY SERVICE AR EAS (---)
6 - D1t EXEl. 16 - MOltG ANTON 7 - G ASTONI A A - DUKE POWER COMPANY 17 - NEWTON 8 - Gil ANITE FALLS 18 - PitJEVILLE 8 - CAltOLINA POWER & LIGIIT COMPANY 9 - filCII POINT 19 - SilELi1Y C - VlltGINI A ELECTRIC & POWER COMPANY 10 - 11UNTERSVILLE ?.0 - STATESVILLE _
- TABLE 1 EXHIBIT A PARTICIPANTS AND PARTICIPANTS' SHARES Participant's Preliminary
- Share Ci'ty of Albemarle Town of Bostic - -
7.7000%
City of Cherryville -
.0880 City of Concord 1.5987 Town of Cornelius 8.7413 Town of Drexel .3667 City of Gastonia .5133 Town of Granite Falls 17.3360 City'of High Point ' .9240 Town of Huntersville 19.1987 Town of Landis .6307 .
City of Lexington 1.1440 City of Lincolnton 13.0973 Town of Maiden -
1.6280 City of Monroe .
1.3053 '
City of Morganton 10.1640 City of Newton 6.8200 Town of Pineville. 2.1413 City of Shelby .5427 City of Statesville 6.0720 9.9880 Total '
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