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9.1 Overview

OPERATING AND FINANCIAL REVIEW

09

Test program for the bottom and closure heads of the FA3

reactor vessel

In 2016, AREVA carried out the test program concerning the problem of carbon

segregation in the bottom head and closure head of the Flamanville 3 reactor

vessel, in accordance with the framework of the nuclear safety authority ASN’s

requirements, as defined in its letter of December 12, 2015 and supplemented by

that of September 26, 2016.

Throughout the conduct of this program, it was subject to surveillance by the Notified

Organization designated by the nuclear safety authority ASN. EDF was associated

with those tests.

As a reminder, this program involves carrying out mechanical tests to characterize

the properties of the materials and verify their conformity. Three sacrificial parts

were used.

The final report was sent to the nuclear safety authority ASN on December 16, 2016.

It is under review by the latter together with the IRSN. The review will end with an

opinion from the ESPN Standing Group, expected in June 2017.

Based on that opinion, ASN will issue a technical evaluation of the vessel’s

conformity and will refer the matter to the Higher Council for the Prevention of

Technological Risks (CSPRT). In addition, the Chinese safety authority conditioned

the commissioning of the Taishan 1 power plant under construction on the

acceptance of the Flamanville vessel demonstration report by the French safety

authority.

AREVA considers the results included in the report sent to the safety authority to

be satisfactory. A favorable decision by the CSPRT was assumed in the financial

statements for the period ended December 31, 2016.

Carbon segregation of steam generator channel heads

The discovery of high concentrations of carbon on the channel heads of steam

generators in EDF’s fleet gave rise in 2016 to a large program of inspections, tests

and analyses to demonstrate the suitability for service of those components and

to recommend strengthened manufacturing processes to ASN to guarantee that

these phenomena are under control. The channel heads concerned are mainly

subcontracted parts and are not forged at le Creusot. The analyses provided in 2016

enabled the restart of the reactors in the EDF fleet.

Some channel heads manufactured at le Creusot for steam generators in the

process of being manufactured will be replaced by new channel heads. All of the

corresponding work was evaluated and factored into the costs at completion of

the projects concerned.

Quality action plan concerning the New NP

manufacturing plants

The quality audit of the Creusot plant launched at the end of 2015 continued

in 2016. In connection with the audit, all of the quality processes were reviewed

and improvement measures are being implemented.

Concerning the Creusot plant, the quality audit was supplemented by exhaustive

analysis of one category of manufacturing files of forged parts (marked files), with

the objective of identifying potential anomalies. Files presenting practices which

are not in compliance with Creusot’s quality assurance rules were identified. The

anomalies found were the subject of a technical characterization submitted to a

technical committee. This work was carried out with the operators and customers

concerned. The objective of this work is to validate the characterization performed

and to deal with the anomalies by providing customers and the safety authorities

appropriate technical justification in terms of the contractual and regulatory

requirements ensuring the operability of the parts. An information and discussion

process has been implemented in which the nuclear safety authorities in particular

are involved. All of the customers concerned by the anomalies identified have been

informed by AREVA.

To date, the analyses have found that no reported anomaly compromises the

mechanical integrity of the parts concerned. Additional tests and analyses are in

progress, in particular on an equipment item delivered to the Fessenheim 2 power

plant, in order to respond to requests from the nuclear safety authority ASN following

the suspension of the test certificate of one of the steam generators.

A more extensive analysis of the manufacturing files (unmarked files) is in progress

and concerns more than 6,000 files. Additional identified anomalies are being dealt

with in the same way. In this regard, an anomaly on a steam generator delivered to

the Flamanville 3 site was the subject of characterization for purposes of responding

to requests from the safety authority.

In addition, since May 2016, the analysis has been extended to the St-Marcel and

Jeumont sites. No similar anomalies have been identified at those two sites as of

the date of these financial statements.

Tensile tests performed at the Creusot laboratory

Following the deficiencies found in April 2015 concerning tensile test protocols at

the Creusot laboratory, systematic verification was undertaken to justify the parts

concerned through analyses or by retesting on test specimens. The identified

anomalies are being dealt with in coordination with the customers.

Inspection of the Creusot site by the safety authorities

of several countries

The safety authorities of several countries carried out an inspection of the Creusot

site at the end of 2016 following the inspection protocol of the Multinational Design

Evaluation Program (MDEP). Following that inspection, the U.S. Nuclear Regulatory

Commission (NRC) published its report on February 22, 2017. In the report’s

conclusion, the NRC estimates in particular that AREVA NP continues to meet

the applicable requirements of the Code of the American Society of Mechanical

Engineers (ASME).

However, the NRC presented its site visit report to ASME. The Committee on Nuclear

Certification (CNC) of ASME could decide to conduct an audit at le Creusot in order

to identify potential deficiencies with regard to ASME’s requirements and launch a

procedure for the suspension or withdrawal of the certificate(s). CNC’s concerns

focus more particularly on the equipment delivered under ASME certificates other

than the forgings installed in the United States, which the NRC report did not call

into question.

A decision to suspend or withdraw could concern all of the designs and components

delivered or to be delivered by the Creusot and/or St Marcel sites. A suspension

decision would prevent AREVA NP from claiming ASME certification as from

the date of the suspension decision and would affect ANP’s ability to meet its

contractual obligations when it has committed to delivering certified parts. However,

the scope of this restriction should be put into perspective in view of the low level

of backlog in progress. A decision to withdraw certification would be retroactive

only to its date of delivery, i.e. August 2015.

Based on our information, the CNC apparently has decided to contact the ASN

for an update on the situation. It is probable that the Chalon site will be inspected

by ASME in connection with this line of questioning about the current certificate.

104

2016 AREVA

REFERENCE DOCUMENT