Amendment No. 1 to
SEC File No. 70-8393
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM U-1
APPLICATION
UNDER
THE PUBLIC UTILITY HOLDING COMPANY ACT OF 1935 ("Act")
GPU NUCLEAR CORPORATION ("GPUN")
One Upper Pond Road, Parsippany, N.J. 07054
(Name of company or companies filing this statement
and address of principal offices)
GENERAL PUBLIC UTILITIES CORPORATION ("GPU")
(Name of top registered holding company
parent of the applicant)
D. W. Myers, J. F. Wilson, Secretary
Vice President & Treasurer GPU Nuclear Corporation
M. A. Nalewako, Secretary One Upper Pond Road
General Public Utilities Corporation Parsippany, N.J. 07054
100 Interpace Parkway
Parsippany, N.J. 07054 M. J. Connolly, Esq.
GPU Service Corporation
100 Interpace Parkway
Parsippany, N.J. 07054
_________________________________________________________________
(Names and addresses of agents for service)
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GPUN hereby amends its Application, docketed in SEC File
No. 70 8393, as follows:
1. By amending and restating Item 1, paragraph E in its
entirety as follows:
"E. While the dynamic nature of competition and the
marketplace makes it difficult to specifically
describe, in advance, the particular Services that
may be offered from time to time, some examples of
the types of Services contemplated in this
Application are as follows:
(i) Engineering and technical services of the type and
nature typically provided by architectural and
engineering firms in connection with the maintenance
and operation of nuclear and non-nuclear generation
facilities ("Engineering and Technical Services").
GPUN proposes to provide Engineering and Technical
Services to non-affiliated companies, businesses,
institutions, government agencies, and individuals.
The Engineering and Technical Services may be offered
directly to non-affiliated parties or through
collaboration arrangements with other utilities,
engineering firms or companies which provide
engineering, consulting, design and related services,
(a) in the case of utilities, for themselves on their
own facilities, or, (b) in the case of engineering
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firms and companies, for utility and energy-related
clients, and which from time to time need additional
engineering resources to augment their capabilities.
By way of example, such Engineering and Technical
Services include:
1. Power Plant Inspections and Risk Analysis:
Conducting nuclear and non-nuclear plant inspections
and performing probabilistic risk assessments of
plants and plant systems including the employment,
licensing, leasing or sale of robotic devices and
techniques to conduct such inspections and analysis.
2. Power Plant Accident Analysis: Analyzing
abnormal nuclear and non-nuclear system or plant
conditions that could affect the safety, integrity,
or proper functional operation of a system or plant,
could produce system or plant degradation, or affect
personnel safety and which require actions to restore
a system or plant to a known and confirmed safe
condition and to mitigate the consequences of the
event.
3. Power Plant Stress Analysis: Assessing the
actual and potential mechanical stresses in nuclear
and non-nuclear power plant systems and providing
recommendations for corrective action.
4. Power Plant Operations Analysis: Analyzing
nuclear and non-nuclear power plant technical
performance, including major equipment failure
analysis; reviewing and assessing the safety
significance of operating experience from NRC
notices, bulletins, industry reports, etc., and
providing recommendations for needed actions.
5. Power Plant Life Extension Analysis: Reviewing
nuclear facility structures, systems and components
and performing activities necessary to apply to the
NRC for an extension of a facilities operating
license beyond the current 40 year design life.
6. Nuclear Fuels Cycle Analysis: Providing
overall nuclear core engineering, nuclear fuel
management strategies and basic reactor core physics
capability; directing the specification, selection,
and management of nuclear fuel material, conversion,
enrichment, and fabrication contractors.
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7. Power Plant Modification, Design,
Installation, Evaluation, Testing and Project
Management: Assisting in the operation of nuclear
generating stations for other nuclear utilities by
providing temporary or short-term engineering and
technical operational assistance; providing
guidelines, criteria, designs, drawings, material
selection, specifications, and analyses in support of
nuclear and non-nuclear power plant modifications;
managing (organize, plan and coordinate) engineering
project activities with regard to technical adequacy,
schedule and cost; performing start-up and test
activities to assure new or modified nuclear and non-
nuclear power plants, facilities and systems are
systematically tested to conform with technical
requirements.
8. Power Plant Equipment Corrosion Control and
Failure Analysis: Assessing the potential corrosion
mechanisms in nuclear and non-nuclear power plant
systems and provide recommendations for corrective
action; investigating system and equipment failures
and providing recommendations for corrective action.
9. Chemical and Metallurgical Laboratory
Services: Performing chemical analysis and providing
chemistry requirements and specifications associated
with nuclear and non-nuclear power plant systems and
components; providing metallurgical laboratory
services and material engineering (e.g., analyze the
condition, assess the physical properties and
determine the failure mechanism of specific metal
components), including, ASME - Section XI, ISI, IST
welding services.
10. Human Factors Engineering Services: Reviewing
and providing recommendations for the design of
nuclear and non-nuclear power plant equipment,
systems, facilities, and operational environments to
promote safe, efficient and reliable operator
performance by focusing on and promoting optimum man-
machine interface.
11. Commercial Grade Dedication of Equipment:
Performing the necessary actions and providing the
required documentation to allow a commercial grade
equipment item to be designated for use in a Nuclear
Safety Related application.
12. Radioactive Waste Services: Providing
radiological engineering services for ALARA programs;
providing design, engineering, and management
services for low and high radioactive waste,
minimization, storage, volume reduction, shipment and
disposal.
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13. Plant Decommissioning Services: Providing
engineering services to support nuclear power plant
decommissioning efforts, including project
management, site characterization, development of
decommissioning plans. dismantlement, consulting
services, robotics licensing, safety, radwaste
reviews, and final site acceptance.
14. Mechanical, Electrical and Structural
Engineering Services: Providing services to evaluate
nuclear and non-nuclear power plant conditions,
design modifications, provide consultants for problem
solving, including code interpretation, design
verified calculations, technical reports, engineering
evaluations and design and drafting.
15. Nondestructive Testing and Examination
Services: Employing nondestructive testing and
analysis techniques and technologies to test and
examine nuclear and non-nuclear power plant systems.
16. Instrument Calibration Services: Calibrating
test equipment and other technical equipment or
devices used in nuclear and non-nuclear power plants.
(ii) Management and consulting services encompassing both
nuclear related and non-nuclear areas and issues such
as corporate communications, environmental
consultation, nuclear safety review, testing and
oversight, industrial safety and hygiene, and
emergency preparedness, nuclear decontamination and
decommissioning, asbestos abatement and remediation,
environmental testing and analysis, laboratory
testing and analysis, nuclear chemistry, radiological
controls and radioactive waste processing, quality
assurance ("Management and Consulting Services").
GPUN proposes to provide Management and Consulting
Services to non-affiliated companies, businesses,
institutions, government agencies, and individuals.
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The activities already authorized under SEC File No.
70-7847 (HCAR No. 35-25401) , File No. 70-7905 (HCAR
No. 35-25464) and File No. 70-8115 (HCAR No. 35-
25814) as set forth in Item 1 paragraph A (iii) (c),
(d) and (e) hereof are examples of such Management
and Consulting Services. Additional examples are as
follows:
1. Nuclear Plant Decommissioning and
Decontamination Management and Consulting
Services.
2. Nuclear and Non-Nuclear Power Plant Outage
Management and Consulting Services including
procurement and contracting services in
connection therewith.
3. Nuclear and Non-Nuclear Quality Assurance Audits.
4. Nuclear and Non-Nuclear Medical Services
Management and Consulting Services.
5. FSAR Licensing Consultation and Operations
Analysis.
6. Management and Consulting Services in connection
with the types of circumstances, needs or
problems requiring nuclear and non-nuclear
Engineering and Technical Services examples of
which are described in paragraph E(i) above or
paragraph E(iii) below.
(iii) Training and education services in such nuclear and
non-nuclear areas as basic, intermediate and advanced
electrical and utility engineering skills, job re-
engineering and business process analysis skills,
disaster recovery skills, records retention and
management skills and quality assurance skills
("Training and Education Services"). GPUN proposes
to provide Training and Education Services to non-
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affiliated companies, businesses, institutions,
government agencies, and individuals. By way of
example, Training and Education Services and related
skills which GPUN has developed and maintains and
which GPUN believes may be of interest to such non-
affiliates include:
1. Computer-based Training.
2. Instructor Training.
3. Nuclear Plant Operating Room Simulator
Certification and Training.
4. Simulator Maintenance and Modification
Training.
5. Fire Safety and Plant and Facility Security
Training.
6. Diesel Equipment Training.
7. Development of Performance-based training
programs for non-affiliates using GPUN's
copyrighted Training and Education Database
Systems ("TEDS") software system.
(iv) GPUN also proposes to license or lease to non-
affiliates the use of (a) intellectual and
proprietary property developed and owned by GPUN (or
owned and licensed to GPUN by one or more of its
affiliate companies) for use in its normal business
operations as a nuclear service company for the GPU
holding company system, (e.g., any process, program,
technique, invention, computer software, work of art,
video, sound recording or written work), including
training manuals, materials and processes in
conjunction with or separate from the Services
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described above; and (b) the reserve capacity of
Laboratory or other support facilities ("Reserve
Capacity") developed and maintained by GPUN for use
in connection with its normal business operations as
such a nuclear service company ("Licensing and
Leasing Services")."
2. By amending Item 1, paragraph F by amending and restating
the last sentence thereof as follows:
"Revenues received and expenses incurred in connection with
transactions in such Services will be accounted for in
accordance with Rule 93 under the Act using the appropriate
accounts as provided under the Uniform System of Accounts
including Instruction 01-2 of 17 CFR Part 256."
3. By amending Item 1 paragraph I in its entirety as
follows:
"I. GPUN anticipates that the provision of the Services
pursuant to the authorization sought hereunder will
enable it to use more fully its employees accumulated
skills, expertise and experience, and its resources
and facilities which it has developed solely for the
benefit of the GPU holding company system and which,
by virtue of the unique nature of the nuclear utility
business may not be readily available to the public
from other sources. GPUN's entering into the
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proposed transactions will not interfere with or be
detrimental to the provision of personnel and
services in fulfillment of its obligations to the GPU
Operating Companies. In addition, the provision of
the Services will enhance the ability of GPUN to
maintain the high quality of such skills, expertise
and experience and the efficiency of such resources
and facilities within the GPU holding company system
in a more cost effective manner. Furthermore, the
authority to provide a range of Services, as broadly
defined herein, will enable GPUN to respond more
efficiently and effectively to competitive market
opportunities."
4. By amending Item 1, paragraph J in its entirety as
follows:
"J. . All of the net income derived from the provision of
the Services to non-associates will be used to offset
and reduce the cost of service (including, but not
limited to, the cost of capital, if any) charged to
the GPU Operating Companies as set forth in
Instruction 01-2 of 17 CFR Part 256. GPUN's cost of
capital approximates the GPU System's cost of capital
since the assets of GPUN are owned by the GPU
Operating Companies. The GPU System's year-end cost
of capital was 10.0% in 1991, 9.2% in 1992 and 9.6%
in 1993."
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5. By amending paragraph K of Item 1 in its entirety as
follows:
"K. If GPUN's provision of Services to non-affiliates
becomes sufficiently extensive, GPUN believes it may
be advantageous from both an operational and
administrative standpoint to provide and account for
the Services through one or more new wholly-owned
subsidiaries. In such event, GPUN proposes to
acquire for $1,000 the capital stock of each of one
or more subsidiary corporations to be formed for such
purposes."
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SIGNATURE
PURSUANT TO THE REQUIREMENTS OF THE PUBLIC UTILITY HOLDING
COMPANY ACT OF 1935, THE UNDERSIGNED COMPANY HAS DULY CAUSED THIS
AMENDMENT TO BE SIGNED ON ITS BEHALF BY THE UNDERSIGNED THEREUNTO
DULY AUTHORIZED.
GPU NUCLEAR CORPORATION
By:________________________________
Don W. Myers
Vice President and Treasurer
Date: August 18, 1994
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