[Federal Register Volume 59, Number 130 (Friday, July 8, 1994)]
[Unknown Section]
[Page 0]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 94-16543]


[[Page Unknown]]

[Federal Register: July 8, 1994]


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NUCLEAR REGULATORY COMMISSION

[Docket No. 50-443 (License No. NPF-86)]

 

North Atlantic Energy Service Corp.; (Seabrook Station, Unit No. 
1); Order for Modification of Order Approving Transfer of License

I

    Great Bay Power Corporation, formerly EUA Power Corporation, is the 
holder of a 12.1324 percent ownership share in Seabrook Station, Unit 
No. 1, Great Bay Power Corporation's interest in Seabrook Station, Unit 
No. 1, is governed by License No. NPF-86 issued by the U.S. Nuclear 
Regulatory Commission (NRC), pursuant to Part 50 of Title 10 of the 
Code of Federal Regulations (10 CFR Part 50), on March 15, 1990, in 
Docket No. 50-443. Under this license, only North Atlantic Energy 
Service Corporation, acting as agent and representative of the 11 joint 
owners listed in the license, has the authority to operate Seabrook 
Station, Unit No. 1. Seabrook Station, Unit No. 1, is located in 
Rockingham County, New Hampshire.

II

    The transfer of any right under License No. NPF-86 is subject to 
the NRC's approval pursuant to 10 CFR 50.80(a). By letter of May 14, 
1993, from its counsel, Ropes & Gray, North Atlantic Energy Service 
Corporation filed two requests with the NRC. One requested NRC approval 
of the indirect transfer of control of EUA Power Corporation's 12.1324 
percent ownership share in Seabrook Station, Unit No. 1. The other 
requested an amendment to the Operating License to reflect EUA Power 
Corporation's change of name to Great Bay Power Corporation. The name 
of EUA Power Corporation was formally changed to Great Bay Power 
Corporation in February 1993 following the redemption of all 
outstanding stock in EUA Power Corporation from its corporate parent, 
Eastern Utility Associates. Following the redemption of its outstanding 
stock, EUA Power Corporation was no longer a subsidiary of Eastern 
Utility Associates, and the name was changed to remove any implication 
of a continuing relationship with its former corporate parent. The name 
change did not affect the corporate entity of the debtor in bankruptcy. 
An indirect transfer of ownership occurs with the elimination of the 
existing stock of the debtor (now known as Great Bay Power Corporation) 
and the issuance of new stock to others.
    On August 16, 1993, the NRC issued Amendment 23 to License No. NPF-
86 that incorporated the name change of EUA Power Corporation to Great 
Bay Power Corporation in the footnote to page 1 of the operating 
license and issued an order approving the indirect transfer of the 
ownership interest of EUA Power Corporation. The order was contingent 
on the transfer of control being completed no later than February 15, 
1994, and included the provision that upon application and showing of 
good cause, the order may be extended for a short period beyond 
February 15, 1994.
    On February 3, 1994, North Atlantic Energy Service Corporation, 
through their counsel Ropes & Gray, filed an application requesting 
extension of the Order until June 30, 1994, and identified the reasons 
why the transfer of control could not be completed by February 15, 
1994. In that application, it was asserted that the sole obstacle to 
final implementation of the Plan of Reorganization was the difficulty 
with completing the contemplated $45 million credit facility for the 
source of funds to cover Great Bay Power Corporation's cash 
requirements. In lieu of this credit facility, the debtor's bondholders 
entered into an agreement in principle with Omega Advisors that 
provided for an investment of $35 million by Omega Advisors in exchange 
for 60 percent equity in Great Bay Power Corporation. This agreement, 
reached on February 2, 1994, was a modification to the Plan of 
Reorganization and additional time was required to formalize the 
agreement, recirculate a revised Disclosure Statement to the creditors, 
and obtain reconfirmation of the revised Plan of Reorganization from 
the Bankruptcy Court.
    On February 15, 1994, the NRC issued an Order which modified the 
August 16, 1993, Order Approving Transfer of License by extending the 
expiration date to June 30, 1994. On April 7, 1994, a Stock 
Subscription Agreement was entered into with Omega Advisors and Elliot 
Associates, L.P.,\1\ and a revised Disclosure Statement was circulated 
to all creditors. The Revised Plan of Reorganization was confirmed by 
the Bankruptcy Court on May 23, 1994, and a closing of the transaction 
was scheduled for June 15, 1994. However, on June 11, 1994, Omega 
Advisors notified Great Bay Power Corporation that unanticipated events 
leading to the delay in the completion of the Seabrook Station, Unit 
No. 1 third refueling outage from early June 1994 until early August 
1994 has the potential to adversely affect Great Bay Power 
Corporation's financial projections, and the delay constitutes a 
material adverse change in Great Bay Power Corporation's financial 
condition. Omega Advisors requested postponement of the scheduled 
closing while the impact of these events could be assessed by 
independent financial and engineering consultants retained by Omega 
Advisors. Because these evaluations will not be available by June 30, 
1994, North Atlantic Energy Service Corporation has requested further 
extension of the Order until August 31, 1994.
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    \1\On April 14, 1994, Ropes & Gray submitted a status report on 
behalf of North Atlantic Energy Service Corporation and a copy of 
the Supplemental Disclosure Statement. That statement disclosed that 
in addition to Omega Advisors, Elliot Associates, L.P., would 
participate in the acquisition of an aggregate of 60 percent of 
Great Bay Power Corporation's equity securities. Previously, Omega 
Advisors was identified as the sole participant in the equity 
financing. The stock purchase agreement discloses that the Omega 
entities will purchase 49 percent of the equity position and Elliot 
Associates will purchase the remaining 11 percent.
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    On the basis of the information in North Atlantic Energy Service 
Corporation's application (Ropes & Gray letter dated June 27, 1994), I 
find good cause to extend the expiration date of the Order Approving 
Transfer of License dated August 16, 1993.

III

    Accordingly, pursuant to Sections 161b, 161i, and 184 of the Atomic 
Energy Act of 1954 (as amended), 42 U.S.C. 2201 et seq., and 10 CFR 
50.80, It Is Hereby Ordered that: the Order Approving Transfer of 
License dated August 16, 1993, is modified to change the latest date 
for completion of the transfer, as specified in Section III of the 
August 16, 1993, Order, to August 31, 1994. The Order of August 16, 
1993, except as modified herein, remains in effect.

    For the Nuclear Regulatory Commission.

    Dated at Rockville, Maryland this 30th day of June 1994.
William T. Russell,
Director, Office of Nuclear Reactor Regulation.
[FR Doc. 94-16543 Filed 7-7-94; 8:45 am]
BILLING CODE 7590-01-M