[Federal Register Volume 63, Number 244 (Monday, December 21, 1998)]
[Notices]
[Pages 70438-70439]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 98-33718]
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NUCLEAR REGULATORY COMMISSION
[Docket No. 50-410]
In the Matter of Rochester Gas and Electric Corporation; (Nine
Mile Point Nuclear Station Unit No. 2); Order Approving Application
Regarding Restructuring of Rochester Gas and Electric Corporation by
Establishment of a Holding Company Affecting License No. NPF-69, Nine
Mile Point Nuclear Station, Unit No. 2
I
Rochester Gas and Electric Corporation (Applicant) is licensed by
the U.S. Nuclear Regulatory Commission (NRC or Commission) to own and
possess a 14-percent interest in Nine Mile Point Nuclear Station, Unit
2 (NMP2), under Facility Operating License No. NPF-69, issued by the
Commission on July 2, 1987. In addition to Applicant, the other owners
who may possess, but not operate, NMP2 are New York State Electric &
Gas Corporation with an 18-percent interest, Long Island Lighting
Company with an 18-percent interest, and Central Hudson Gas and
Electric Corporation with a 9-percent interest. Niagara Mohawk Power
Corporation (NMPC) owns a 41-percent interest in NMP2, is authorized to
act as agent for the other owners, and has exclusive responsibility and
control over the operation and maintenance of NMP2. NMP2 is located in
the town of Scriba, Oswego County, New York.
II
Under cover of a letter dated July 31, 1998, Applicant submitted an
application, which was supplemented August 18, 1998, and September 14,
1998, 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 license for NMP2 to the
extent it is held by Applicant. As a result of the proposed
restructuring, Applicant would establish a new holding company and
become a subsidiary of the new holding company, not yet named, to be
created in accordance with an ``Amended and Restated Settlement
Agreement'' with the Public Service Commission of the State of New
York, dated January October 23, 1997 (Case 96-E-0989).
According to the application, essentially all of the outstanding
shares of Applicant's common stock would be exchanged on a share-for-
share basis for common stock of the proposed new holding company, such
that the holding company would own the outstanding common stock of
Applicant. Under the proposed restructuring, Applicant would continue
to be an ``electric utility'' as defined in 10 CFR 50.2, providing the
same utility services as it did before the restructuring. In addition,
certain non-utility unregulated subsidiaries of Applicant would become
subsidiaries of the new holding company. Applicant would retain its
ownership interest in NMP2 and would continue to be a licensee. No
direct transfer of the operating license or interests in the station
would result from the proposed restructuring. The transaction would not
involve any change to either the management organization or technical
personnel of NMPC, which has exclusive responsibility under the
operating license for operating and maintaining NMP2 and which is not
involved in the proposed restructuring of Applicant.
Notice of the application for approval was published in the Federal
Register on October 26, 1998 (63 FR 57141), and an Environmental
Assessment and Finding of No Significant Impact was published in the
Federal Register on October 26, 1998 (63 FR 57143).
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 31, 1998, as
supplemented by letters dated August 18, and September 14, 1998, and
attachments thereto, the NRC staff has determined that the proposed
restructuring of Applicant by establishment of a holding company will
not affect the qualifications of Applicant as a holder of the license,
and that the transfer of control of the license for NMP2, to the extent
effected by the 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 14, 1998.
III
Accordingly, pursuant to sections 161b, 161i, 161o, and 184 of the
Atomic Energy Act of 1954, as amended, 42 USC 2201(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 Applicant by the establishment of a holding company,
subject to the following: (1) Applicant shall provide the Director,
Office of Nuclear Reactor Regulation, a copy of any application, at the
time it is filed,
[[Page 70439]]
to transfer (excluding grants of security interests or liens) from
Applicant 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 Applicant's consolidated net utility plant, as recorded on
Applicant's books of account, and (2) should the restructuring of
Applicant not be completed by December 14, 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 will also 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 Dr. Robert C. Mecredy, Vice President,
Nuclear Operations, Rochester Gas and Electric Corporation, 89 East
Avenue, Rochester, NY 14649; the General Counsel, U.S. Nuclear
Regulatory Commission, Washington, DC 20555; and the Secretary of the
Commission, U.S. Nuclear Regulatory Commission, Washington, DC 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 will be held and designating the Presiding Officer. A
notice granting a hearing will be published in the Federal Register and
served on the parties to the hearing.
For further details with respect to this Order, see the application
for approval dated July 31, 1998, as supplemented by letters dated
August 18, 1998, and September 14, 1998, and attachments thereto, and
the Safety Evaluation dated December 14, 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
and the Rochester Public Library, 115 South Avenue, Rochester, New York
14610.
Dated at Rockville, Maryland, this 14th day of December 1998.
For the Nuclear Regulatory Commission.
Samuel J. Collins,
Director, Office of Nuclear Reactor Regulation.
[FR Doc. 98-33718 Filed 12-18-98; 8:45 am]
BILLING CODE 7590-01-P
