IR 05000277/2007406

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January 24, 2008

Enclosure Contains Safeguards Information.When Separated from enclosure, this document is not Safeguards Information.Mr. Charles G. PardeeChief Nuclear Officer and Senior Vice President Exelon Generation Company, LLC 4300 Winfield Rd Warrenville, IL 60555

SUBJECT: PEACH BOTTOM ATOMIC POWER STATION - NRC PHYSICAL SECURITYBASELINE INSPECTION REPORT NOS. 05000277/2007406 AND 05000278/2007406

Dear Mr. Pardee:

On January 11, 2008, the U.S. Nuclear Regulatory Commission (NRC) completed a securitybaseline inspection at your Peach Bottom Atomic Power Station. 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 January 10, 2008, with Mr. James Kovalchick, Acting Site Security Manager.The inspection examined activities conducted under your licenses as they relate to security andcompliance with the Commission's rules and regulations and with the conditions of your licenses. The inspectors reviewed selected procedures and records, observed activities, and interviewed personnel.Warning: Violation of section 147 of the AtomicEnergy Act, "Safeguards Information" is subject to civil and criminal penalties DETERMINATION MADE BY:

NAME/TITLE: James M. Trapp, ChiefORGANIZATION: RI/DRS/PSB1 BASIS - DG-SG-1 (300) Physical Protection Program SIGNATURE____/RA/_________ DATE: 1/24/08 Mr. C. Pardee2 This report documents one finding of very low safety significance (i.e., Green as determined bythe Physical Protection Significance Determination Process). The deficiency was 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. The finding had a cross-cutting aspect in the area of human performance because the expectations regarding procedural compliance were not clearly communicated (H.4(b)).

However, because of the very low safety significance and because it is entered into your corrective action program, the NRC is treating this violation as a non-cited violation (NCV)

consistent with Section VI.A.1 of the NRC enforcement Policy. If you contest this non-cited violation, 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 20555-0001; with copies to the Regional Administrator Region I; the Director, Office of Enforcement, United States Nuclear Regulatory Commission, Washington DC 20555-0001; and the NRC Resident Inspector at the Peach Bottom Atomic Power Station.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/James M. Trapp, ChiefPlant Support Branch 1 Division of Reactor SafetyDocket Nos.50-277, 50-278License Nos.DPR-44, DPR-56

Enclosure:

NRC Inspection Report Nos. 05000277/2007406 and 05000278/2007406

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Supplemental Information(CONTAINS (SGI) M