98-32630. The Cleveland Electric Illuminating Company, Toledo Edison Company, Centerior Service Company, Ohio Edison Company, OES Nuclear, Inc., Pennsylvania Power Company, and Duquesne Light Company (Perry Nuclear Power Plant, Unit No. 1); Order ...  

  • [Federal Register Volume 63, Number 236 (Wednesday, December 9, 1998)]
    [Notices]
    [Pages 67939-67940]
    From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
    [FR Doc No: 98-32630]
    
    
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    NUCLEAR REGULATORY COMMISSION
    
    [Docket No. 50-440]
    
    
    The Cleveland Electric Illuminating Company, Toledo Edison 
    Company, Centerior Service Company, Ohio Edison Company, OES Nuclear, 
    Inc., Pennsylvania Power Company, and Duquesne Light Company (Perry 
    Nuclear Power Plant, Unit No. 1); Order Approving Application Regarding 
    the Transfer of Operating Authority
    
    I.
    
        The Cleveland Electric Illuminating Company (CEI), Centerior 
    Service Company (CSC), Duquesne Light Company, Ohio Edison Company 
    (OE), OES Nuclear, Inc., Pennsylvania Power Company (Penn Power), and 
    Toledo Edison Company (TE) are the licensees of the Perry Nuclear Power 
    Plant, Unit No. 1 (PNPP). CEI and CSC act as agents for the other 
    licensees and have exclusive responsibility for, and control over, the 
    physical construction, operation, and maintenance of PNPP as reflected 
    in Operating License No. NPF-58. The U.S. Nuclear Regulatory Commission 
    (NRC) issued License No. NPF-58 on March 18, 1986, pursuant to Part 50 
    of Title 10 of the Code of Federal Regulations (10 CFR Part 50). The 
    facility is located on the shore of Lake Erie in Lake County, Ohio, 
    approximately 35 miles northeast of Cleveland, Ohio.
    
    II.
    
        By application dated June 30, 1998, as supplemented by submittals 
    dated October 27 and November 30, 1998, the licensees requested 
    approval of the transfer of operating authority under the license to a 
    new company, FirstEnergy Nuclear Operating Company (FENOC), and 
    issuance of a conforming amendment. The licensees proposed to transfer 
    operating authority under the license to FENOC to allow it to use and 
    operate PNPP and to possess and use related licensed nuclear materials 
    in accordance with the same conditions and authorizations in the 
    current operating license. The licensees have also requested the 
    issuance of a license amendment reflecting the transfer of operating 
    authority. FENOC, a wholly-owned subsidiary of FirstEnergy Corporation, 
    the direct or indirect parent of the owners of PNPP except for Duquesne 
    Light Company, would become the licensed operator for PNPP and would 
    have exclusive control over the operation and maintenance of the 
    facility. The present plant organization, the oversight organizations, 
    and the engineering and support organizations would be transferred 
    essentially intact from the current operating licensees to FENOC. The 
    technical qualifications of the FENOC organization, therefore, would be 
    at least equivalent to those of the existing organization responsible 
    for operating the plant. CSC, which has no ownership interest in PNPP, 
    and is licensed only as an operator of PNPP, would be removed from the 
    license.
        Under the proposed arrangement, ownership of PNPP would remain 
    unchanged; each owner would retain its current ownership interest. 
    FENOC would not own any portion of PNPP. Likewise, the owners' 
    entitlement to capacity and energy from PNPP would not be affected by 
    the proposed transfer of operating responsibility for PNPP to FENOC. 
    The owners would continue to provide all funds for FENOC to operate, 
    maintain, and decommission PNPP. The owners' responsibilities would 
    include providing funding for any emergency situations that might arise 
    at PNPP.
    
    [[Page 67940]]
    
        The licensees requested the Commission's approval of the transfer 
    of operating authority to FENOC and issuance of a conforming license 
    amendment pursuant to 10 CFR 50.80 and 50.90. Notice of this 
    application for approval and an opportunity for a hearing were 
    published in the Federal Register on August 4, 1998 (63 FR 41600), and 
    an Environmental Assessment and Finding of No Significant Impact was 
    published in the Federal Register on September 10, 1998 (63 FR 48531).
        Under 10 CFR 50.80, no license, or any right thereunder, 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 contained in the submittals of June 30, 
    October 27, and November 30, 1998, and other information before the 
    Commission, the NRC staff has determined that FENOC is qualified to 
    hold the license to the extent and for the purposes described above, 
    and that the transfer of the license as described above is otherwise 
    consistent with applicable provisions of law, regulations, and orders 
    issued by the Commission, subject to the conditions set forth below. 
    These findings are supported by a Safety Evaluation dated December 2, 
    1998.
    
    III.
    
        Accordingly, pursuant to Sections 105, 161b, 161i, and 184 of the 
    Atomic Energy Act of 1954, as amended; 42 USC Secs. 2135, 2201(b), 
    2201(i), and 2234; and 10 CFR 50.80, it is hereby ordered that the 
    Commission consents to the transfer of the license as described herein 
    to FENOC, subject to the following conditions:
        (1) FENOC shall not market or broker power or energy from the Perry 
    Nuclear Power Plant, Unit No. 1. The owners are responsible and 
    accountable for the actions of FENOC to the extent that said actions 
    affect the marketing or brokering of power or energy from the Perry 
    Nuclear Power Plant, Unit No. 1, and, in any way, contravene the 
    antitrust license conditions contained in the license.
        (2) Should the formation of FENOC and transfer of operating 
    authority not be completed by December 31, 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.
        Action on the proposed conforming license amendment will be taken 
    upon implementation of the transfer approved by this Order.
        For further details with respect to this Order, see the licensees' 
    application dated June 30, 1998, as supplemented by submittals dated 
    October 27 and November 30, 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 Perry Public Library, 3753 Main Street, 
    Perry, OH 44081.
    
        Dated at Rockville, Maryland, this 2nd day of December.
    
    For the Nuclear Regulatory Commission.
    Roy P. Zimmerman,
    Acting Director, Office of Nuclear Reactor Regulation.
    [FR Doc. 98-32630 Filed 12-8-98; 8:45 am]
    BILLING CODE 7590-01-P
    
    
    

Document Information

Published:
12/09/1998
Department:
Nuclear Regulatory Commission
Entry Type:
Notice
Document Number:
98-32630
Pages:
67939-67940 (2 pages)
Docket Numbers:
Docket No. 50-440
PDF File:
98-32630.pdf