[Federal Register Volume 60, Number 249 (Thursday, December 28, 1995)]
[Notices]
[Pages 67143-67144]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 95-31386]



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NUCLEAR REGULATORY COMMISSION

[Docket No. 50-440]


Cleveland Electric Illuminating Co., et al.; Order Approving 
Transfer of License for Perry Nuclear Power Plant

I

    Cleveland Electric Illuminating Company (CEI), Centerior Service 
Company (CSC), Duquesne Light Company, Ohio Edison Company (Ohio 
Edison), Pennsylvania Power Company, and Toledo Edison Company are the 
licensees of Perry Nuclear Power Plant, Unit No. 1 (PNPP Unit 1). CEI 
and CSC act as agents for themselves, and the other licensees and have 
exclusive responsibility for and control over the physical 
construction, operation, and maintenance of PNPP Unit 1 as reflected in 
Operating License No. NPF-58. The 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). Ohio 
Edison holds title to 17.42 percent of PNPP Unit 1 and leases another 
12.58 percent of PNPP Unit 1 pursuant to the sale and leaseback 
transactions previously authorized by Amendment 2 to License No. NPF-
58. The facility is located on the shore of Lake Erie in Lake County, 
Ohio, approximately 35 miles northeast of Cleveland, Ohio.

II

    Under cover of a letter dated November 17, 1995, from Shaw, 
Pittman, Potts and Trowbridge, Ohio Edison submitted its request for 
approval of its intended transfer of its 17.42-percent ownership 
interest (less the ownership interest in the accompanying transmission 
facilities) to a newly formed wholly owned subsidiary, OES Nuclear Inc. 
(OES). The sale effecting the transfer would include a provision that 
would allow Ohio Edison to convert a steam purchase agreement to a 
lease to itself at some time in the future. The other licensees would 
remain the same and would not be affected by the proposed transfer. By 
letter dated November 22, 1995, CEI submitted a license amendment 
request to reflect the proposed change in Ohio Edison ownership. On 
December 11, 1995, a notice of proposed ownership transfer was 
published in the Federal Register (60 FR 63548).
    The transfer of Facility Operating License No. NPF-58 is subject to 
the consent of the NRC as described by 10 CFR 50.80(a). Ohio Edison 
will remain as a licensee of PNPP Unit 1 and 

[[Page 67144]]
proposes to add OES as an additional licensee. Ohio Edison would make 
payments to OES in an amount sufficient for OES to pay its expenses and 
would retain full responsibility for the costs of operating, 
maintaining, and decommissioning the interest in PNPP Unit 1 
transferred to OES. OES will be an ``electric utility'' as defined in 
10 CFR 50.2, and thus is exempt from further financial qualifications 
review as specified in 10 CFR 50.33(f). Ohio Edison will continue to be 
an ``electric utility'' as defined in 10 CFR 50.2, and thus is also 
exempt from any further financial qualifications review. Given the 
financial arrangement between Ohio Edison and OES, and that both will 
be licensees, the transfer will result in no adverse impact with 
respect to financial qualifications.
    Since CEI and CSC are the only authorized operators and the 
transfer would not affect their staff, plant operations would not be 
affected by the transfer. OES will be bound by the existing antitrust 
license conditions now obligating Ohio Edison, and Ohio Edison will 
remain obligated to these same antitrust license conditions after the 
proposed transfer. Ohio Edison has also asserted that it and OES are 
not owned, controlled, or dominated by an alien, a foreign corporation, 
or a foreign government.
    On the basis of a review of the information in the letters of 
November 17 and 22, 1995, and other information before the Commission, 
the NRC staff finds that adding OES as an additional licensee will not 
adversely affect protection of public health and safety or the common 
defense and security. Therefore, the NRC staff concludes that OES is 
qualified to hold the license to the extent and for the purposes that 
Ohio Edison is now authorized to hold the license with respect to its 
17.42-percent ownership interest and that the transfer, subject to the 
conditions set forth herein, is otherwise consistent with applicable 
provisions of law, regulations, and orders issued by the Commission.

III

    By January 29, 1996, 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 
such person's 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 such hearing.
    If a hearing is held concerning this order, the issue to be 
considered at any such hearing will 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: Docketing and Services Branch, or may be delivered to 
the Commission's Public Document Room, the Gelman Building, 2120 L 
Street, NW., Washington, DC, by the above date. Copies should also be 
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 Gerald Charnoff, Shaw, Pittman, Potts and 
Trowbridge, 2300 N Street NW., Washington, DC 20037.

IV

    Accordingly, pursuant to Sections 161b, 161i, and 184 of the Atomic 
Energy Act of 1954, as amended, 42 U.S.C. Secs. 2201(b), 2201(i), and 
2234, and 10 CFR 50.80, it is hereby ordered that the Commission 
consents to the proposed transfer of the license described herein 
between Ohio Edison and OES subject to the following: (1) an approved 
amendment consistent with the contents of and reflecting this order 
must be issued after the transfer adding OES as an owner of PNPP Unit 1 
for Facility Operating License No. NPF-58, which when issued by the NRC 
would become effective as of the date of issuance; (2) should the 
transfer not be completed by January 31, 1996, this order will become 
null and void, unless upon application and for good cause shown this 
date is extended.
    This order is effective upon issuance. For further details with 
respect to this action, see the application for transfer dated November 
17, 1995, and the application for amendment dated November 22, 1995, 
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, Ohio.

    Dated at Rockville, Maryland, this 20th day of December 1995.

    For the Nuclear Regulatory Commission.
William T. Russell,
Director, Office of Nuclear Reactor Regulation.
[FR Doc. 95-31386 Filed 12-27-95; 8:45 am]
BILLING CODE 7590-01-P