[Federal Register Volume 63, Number 142 (Friday, July 24, 1998)]
[Notices]
[Pages 39911-39912]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 98-19803]
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NUCLEAR REGULATORY COMMISSION
[Docket No. 50-410]
Central Hudson Gas & Electric Corp. (Nine Mile Point Nuclear
Station Unit No. 2); Order Approving Application Regarding
Restructuring of Central Hudson Gas & Electric Corporation by
Establishment of a Holding Company Affecting License No. NPF-69, Nine
Mile Point Nuclear Station, Unit No. 2
I
Central Hudson Gas & Electric Corporation (Applicant) is licensed
by the U.S. Nuclear Regulatory Commission (NRC or Commission) to own
and possess a 9-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 Rochester Gas and
Electric Corporation with a 14-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 April 8, 1998, as resubmitted June 8,
1998, and supplemented April 22, and July 9,1998, Applicant 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 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'' dated January 2, 1998; as modified and approved by the New
York State Public Service Commission's (PSC's) ``Order Adopting Terms
of Settlement Subject to Modifications and Conditions'' (issued and
effective February 19, 1998) in Case 96-E-0909, and further modified in
the PSC's ``Modifications to Amended and Restated Settlement
Agreement,'' dated February 26, 1998 (hereafter collectively known as
``Settlement Agreement''). These documents constituting the Settlement
Agreement were included with the application dated April 8, 1998.
According to the application, 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 all of the outstanding common stock of Applicant.
Also under the proposed restructuring, Applicant would sell at auction
some of its fossil-fueled generating assets, but 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 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 June 2, 1998 (63 FR 30025), and an Environmental Assessment
and Finding of No Significant Impact was published in the Federal
Register on June 25, 1998 (63 FR 34667).
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 April 8, 1998, as
resubmitted June 8, 1998, and supplemented by submittals dated April
22, and July 9, 1998, the NRC staff has determined that the
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 July 19, 1998.
III
Accordingly, pursuant to Sections 161b, 161i, 161o, and 184 of the
Atomic Energy Act of 1954, as amended, 42 USC Secs. 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, 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
[[Page 39912]]
consolidated net utility plant, as recorded on Applicant's books of
account, and (2) should the restructuring of Applicant not be completed
by July 19, 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 August 19, 1998, any person adversely affected by this Order may
file a request for a hearing with respect to issuance of the Order. Any
person requesting a hearing shall set forth with particularity how that
interest is adversely affected by this Order and shall address the
criteria set forth in 10 CFR 2.714(d).
If a hearing is to be held, the Commission will issue an order
designating the time and place of the hearing.
The issue to be considered at any such hearing shall be whether
this Order should be sustained.
Any request for a hearing must be filed with the Secretary of the
Commission, U.S. Nuclear Regulatory Commission, Washington, DC 20555-
0001, Attention: Rulemakings and Adjudications Staff, or may be
delivered to 11555 Rockville Pike, Rockville, Maryland, between 7:45
a.m. and 4:15 p.m. Federal workdays, by the above date. Copies should
be also sent to the Office of the General Counsel, and to the Director,
Office of Nuclear Reactor Regulation, U.S. Nuclear Regulatory
Commission, Washington, DC 20555, and to Ms. Ellen Ahearn, Corporate
Secretary, Central Hudson Gas & Electric Corporation, 284 South Avenue,
Poughkeepsie, NY 12601-4879.
For further details with respect to this Order, see the application
for approval dated April 8, 1998, as resubmitted under cover of a
letter dated June 8, 1998, and supplemented by letters dated April 22,
June 8, and July 9, 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, this 19th day of July, 1998.
For the Nuclear Regulatory Commission.
Samuel J. Collins,
Director, Office of Nuclear Reactor Regulation.
[FR Doc. 98-19803 Filed 7-23-98; 8:45 am]
BILLING CODE 7590-01-P
