ML17059C419
| ML17059C419 | |
| Person / Time | |
|---|---|
| Site: | Nine Mile Point  |
| Issue date: | 12/11/1998 |
| From: | Collins S NRC (Affiliation Not Assigned) |
| To: | NIAGARA MOHAWK POWER CORP. |
| Shared Package | |
| ML17059C421 | List: |
| References | |
| NUDOCS 9812230005 | |
| Download: ML17059C419 (10) | |
Text
UNITED STATES OF AMERICA NUCLEAR REGULATORYCOMMISSION In the Matter of NIAGARAMOHAWKPOWER CORPORATION (Nine Mile Point Nuclear Station Unit Nos. 1 and 2)
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Docket Nos. 50-220
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and 50-410
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ORDER APPROVING APPLICATION REGARDING RESTRUCTURING OF NIAGARAMOHAWKPOWER CORPORATION BY ESTABLISHMENTOF A HOLDING COMPANYAFFECTING LICENSES NOS. DPR-63 AND NPF-69, NINE MILEPOINT NUCLEAR STATION, UNIT NOS.
1 AND2 Niagara Mohawk Power Corporation (NMPC or the licensee) is licensed by the U.S
= Nuclear Regulatory Commission (NRC or Commission) to possess, maintain, and operate the Nine Mile Point Nuclear Station, Units 1 and 2 (NMP1 and NMP2, or collectively, the facility),
under Facility Operating License No. DPR-63, issued by the Commission on December 26,....
1974, and Facility Operating License No. NPF-69, issued by the Commission on July 2, 1987.
NMPC fullyowns NMP1, is a 41-percent co-owner of NMP2, and acts as agent for the other co-owners of NMP2. The other co-owners of NMP2, who may possess but not operate NMP2, are New York State Electric 8 Gas Corporation with an 18-percent interest, Long Island Lighting'ompany with an 18-percent interest, Rochester Gas and Electric Corporation with a
'4-percent interest, and Central Hudson Gas 8 Electric Corporation with a 9-percent interest.
The facility is located in the town of Suiba, Oswego County, New York.
98i2230005 98i2ii PDR ADOCK 05000220 P
Under cover of a letter dated July 21, 1998, NMPC submitted an application for consent by the Commission, pursuant to 10 CFR 50.80, regarding a proposed corporate restructuring action that would result in the indirect transfer of the operating licenses for the facilityto.the extent held by NMPC. The application was supplemented October 23, 1998. Under the proposed restructuring, NMPC would become a subsidiary of a new holding company, Niagara Mohawk Holdings, Inc., created by NMPC in accordance with a Settlement Agreement reached with the New York Public Service Commission (PSC Case Nos. 94-E-0098 and 94-E-0099), dated October 10, 1997, and revised March 19, 1998.
In addition, certain of NMPC's non-utility subsidiaries would be transferred to the holding company.
According to the application, each share of NMPC's common stock would be exchanged for one share of common stock of the holding company.
NMPC's outstanding preferred stock would not be exchanged.
Under this restructuring, NMPC would divest all of its hydro and fossil generation assets by auction, but would retain its nuclear assets, and would continue to be an "electric utility"as defined in 10 CFR 50.2 engaged in the transmission, distribution and, through NMP1 and NMP2, the generation of electricity. NMPC would continue to be the owner of NMP1 and a co-owner of NMP2 and would continue to operate both NMP1 and NMP2. No direct transfer of the operating licenses or ownership interests in the facility would result from.the proposed restructuring. The transaction would not involve any change in the responsibility for nuclear operations within NMPC. Officer responsibilities at the holding company level would be primarily administrative and financial in nature and would not involve operational matters related to NMP1 or NMP2. No NMPC nuclear management positions would be changed as a result of the corporate restructuring.
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A Notice of Consideration of Approval of Application Regarding Proposed Corporate Restructuring was published in the Federal Re<sister on September 9, 1998 (63 FR 48254),
and an Environmental Assessment and Finding of No Significant Impact was published in the Federal ~Re ister on September 23, 1998 (63 FR 50931).
Under 10 CFR 50.80, no license shall be transferred, directly or indirectly, through transfer of control of the license, unless the Commission shall give its consent in writing. Upon review of the information submitted in the application of July 21, 1998, as supplemented by letter dated October 23, 1998, the NRC staff has determined that the restructuring of NMPC by establishment of a holding company structure willnot affect the qualifications of NMPC as the holder of the license for NMP1, and as a holder of the license for NMP2, and that the transfer of control of the licenses, to the extent effected by the proposed restructuring, is otherwise consistent with applicable provisions of law, regulations, and orders issued by the Commission, subject to the conditions set forth herein. These findings are supported by a safety evaluation dated December 11, 1998.
Accordingly, pursuant to Sections 161b, 161i, 161o, and 184 of the Atomic Energy Act of 1954, as amended, 42 USCI2201(b), 2201(i), 2201(o), and 2234, and 10 CFR 50.80, IT IS HEREBY ORDERED that the Commission approves the application regarding the proposed restructuring of NMPC by the establishment of a holding company structure, subject to the following: (1) NMPC shall provide the Director, Office of Nucjear Reactor Regulation, a copy of any application, at the time it is filed, to transfer (excluding grants of security interests or liens) from NMPC to its proposed parent, or to any other affiliated company, facilities for the production, transmission, or distribution of electric energy having a depreciated book value exceeding 10 percent (10%) of NMPC's consolidated net utilityplant as recorded on NMPC's
books of account; and (2) should. the restructuring of NMPC as described herein, not be completed by December 10, 1999, this Order shall become null and void, provided, however, on application and for good cause shown, such date may be extended.
This Order is effective upon issuance.
IV.
By January 11, 1999, any person whose interest may be affected by this Order may file in accordance with the Commission's rules of practice set forth in Subpart M of 10 CFR Part 2 a request for a hearing and petition for leave to intervene with respect to issuance of the Order. Such requests and petitions must comply with the requirements set forth in 10 CFR 2.1306, and should address the considerations contained in 10 CFR 2.1308(a).
Untimely requests and petitions may be denied, as provided in 10 CFR 2.1308(b), unless good cause for failure to file on time is established.
In addition, an untimely request or petition should address the factors that the Commission willalso consider, in reviewing untimely requests or petitions, set forth in 10 CFR 2.1308(b)(1)-(2).
Requests for a hearing and petitions for leave to intervene should be served upon Mr.
John H. Mueller, Chief Nuclear Officer, Niagara Mohawk Power Corporation, Nine Mile Point Nuclear Station, Operations Building, Second Floor, P.O. Box 63, Lycoming, New York 13093; the General Counsel, U.S. Nuclear Regulatory Commission, Washington, D.C. 20555; and the Secretary of the Commission, U.S. Nuclear Regulatory Commission, Washington, D.C. 20555-0001, Attention: Rulemakings and Adjudications Staff, in accordance with 10 CFR 2.1313.
The Commission will issue a notice or order granting or denying a hearing request or intervention petition, designating the issues for any hearing that willbe held and designating the Presiding Officer. A notice granting a hearing will be published in the Federal
~Re ister and served on the parties to the hearing.
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For further details with respect to this Order, see the application for approval filed by NMPC under cover of a letter dated July 21, 1998, from John H. Mueller of NMPC, as supplemented by letter dated October 23, 1998, and the safety evaluation dated pecezbe t
1998, which are available for public inspection at the Commission's Public Document Room, the Gelman Building, 2120 L Street, NW., Washington, DC, and at the local public document room located at the Reference and Documents Department, Penfield Library, State University of New York, Oswego, New York 13126.
Dated at Rockville, Maryland, this11 th day of December 1998.
FOR THE NUCLEAR REGULATORYCOMMISSION mue o ins, Director Office of Nuclear Reactor Regulation
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