Common use of Design Basis Clause in Contracts

Design Basis. The Perry Nuclear Power Plant has a common spent fuel handling and storage facility located between the reactor buildings. This facility has storage capacity for approximately 4020 spent fuel assemblies. This constitutes spent fuel storage capacity for over 15 years of operation. In addition the facility has additional storage capacity for other high level solid wastes including discarded reactor internals, control rods and fuel channels. The extended storage capacity of the Perry spent fuel facility is needed in accordance with current practice to treat and dispose of spent nuclear fuel and fuel assemblies as solid waste. Spent fuel is unusable and has no value. The Company does not expect to sell or to be able to sell spent nuclear fuel or fuel assemblies at any price. The Perry spent fuel facility is located in the fuel handling building and the intermediate building. It includes two connected spent fuel storage pools with a related cooling system, fuel handling and transfer equipment, and spent fuel cask handling equipment. Spent fuel may be transferred between the fuel storage pools. The spent fuel handling facility also includes dedicated space in the intermediate building. The qualifying portion of such building is calculated by dividing the space used for the spent fuel handling facility equipment by the total equipment space in the building excluding common areas such as hallways. This space is functionally related and subordinate to the spent fuel handling facility, it is an integral part of the spent fuel handling facility, and the character, size and cost of such building space are dictated by the spent fuel handling facility through federal government construction criteria. Also located in the fuel handling building are production-related fuel handling equipment including 2 sets of new fuel racks, 2 fuel transfer tubes, 1 fuel transfer canal, a truck bay for new fuel delivery and non fuel related equipment. These items and the space they occupy in the fuel handling building are excluded from the scope of the qualifying portion of exempt facilities because they are not dedicated to spent fuel storage. In the absence of current spent fuel storage requirements, the spent fuel storage facility would not be necessary. The reactor building and fuel handling equipment is adequate to provide production related fuel handling functions which include new fuel loading and 1 core offload for maintenance. None of this production-related equipment is included in the scope of the qualifying portion of exempt facilities.

Appears in 2 contracts

Sources: Loan Agreement (Firstenergy Corp), Loan Agreement (Metropolitan Edison Co)