CNL-15-202, Financial Protection Requirements and Indemnity Agreements - Insurance Status Supplement

Financial Protection Requirements and Indemnity Agreements - Insurance Status Supplement

ML15268A528
Person / Time
Site:	Watts Bar
Issue date:	09/24/2015
From:	Shea J W Tennessee Valley Authority
To:	Document Control Desk, Office of Nuclear Reactor Regulation
References
CNL-15-202
Download: ML15268A528 (87)

Text

U.S. Nuclear Regulatory Commission CNL-15-202

Page 2 September 24, 2015

Enclosure:

TVA's Compliance with the Requirements of 10 CFR 50.54(w), 140.11, and 140.21

Attachments: 1. Copy of NEIL Primary Insurance Policy P15-060 2. Copy of Bond for Repayment of Retroactive Premiums

cc (Enclosure):

NRC Regional Administrator - Region II NRC Senior Resident Inspector - Watts Bar Nuclear Plant, Unit 2 NRC Project Manager - Watts Bar Nuclear Plant, Unit 2

E-1 ENCLOSURE Watts Bar Nuclear Plant Unit 2 TVA Compliance with the Requirements of10 CFR 50.54(w), 140.11, and 140.21The NRC Staff requested TVA provide documentation demonstrating how it satisfies the requirements of 10 CFR §§ 50.54(w), 140.11, and 140.21 as they relate to Watts Bar Nuclear Plant (WBN) Unit 2. The requested documentation is attached, and is described below.10 CFR § 50.54(w)As explained in TVA's Annual Insurance Status Report (Reference 1), TVA complies with 10 CFR § 50.54(w) with the purchase of all available limits from private insurer Nuclear Electric Insurance Limited (NEIL) for property and decontamination insurance of at least $1.06 billion for the Watts Bar Nuclear Plant, as provided in Item 6 on page ii of the primary policy (Attachment 1). In addition, WBN Unit 2 is covered for builder's all-risk insurance for the same limit and coverage under endorsement 4 of the Watts Bar Nuclear Plant policy, P15-060 (Attachment 1).

10 CFR §§ 140.11 and 140.21 TVA has also acquired and certified a secondary financial bond for payment of retrospective premiums at WBN Unit 2 under certificate number N-0120. This certificate was provided to the NRC in Reference 2 and is attached again here as Attachment 2. Please note that this certificate is worded to become effective upon issuance of the Facility Operating License. As required by 10 CFR § 140.21(a), it provides evidence of TVA's guarantee, in the form of a bond, of payment of deferred premium in the amount specified in § 140.11(a)(4).

References:

1. TVA Letter to NRC, "Annual Insurance Status Report," dated April 1, 2015 (ML15238A829)

2. TVA Letter to NRC, "Watts Bar Nuclear Plant Unit 2 - Documentation of Liability Insurance Coverage Requested Per Supplemental Safety Evaluation Report (SSER) Open Item 25," dated January 24, 2013 (ML13030A032)

Attachment 1 Copy of NEIL Primary Insurance Policy P15-060

Attachment 2 Copy of Bond for Repayment of Retroactive Premiums