[Federal Register Volume 61, Number 148 (Wednesday, July 31, 1996)]
[Notices]
[Pages 40012-40013]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 96-19436]


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NUCLEAR REGULATORY COMMISSION

[Docket No. 50-440]


Cleveland Electric Illuminating Company, 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), OES Nuclear, Inc. (OES), 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 Facility 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 leases 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 December 29, 1995, from Shaw, 
Pittman, Potts and Trowbridge, Ohio Edison submitted its request dated 
December 28, 1995, for approval of its intended transfer of its 12.58-
percent ownership interest in the ``common facilities'' regarding the 
PNPP Unit 1 to its wholly owned subsidiary, OES. The ``common 
facilities'' include fuel-handling and storage facilities and 
equipment, radioactive waste processing facilities and equipment, 
service equipment (including laboratory equipment, computer equipment, 
and machine shop equipment), site security systems equipment, health 
physics equipment, makeup and discharge water systems, tunnels and 
equipment, furniture, training equipment, and the reactor simulator. 
This request supplements an earlier request to transfer a 17.42-percent 
ownership interest in PNPP Unit 1 from Ohio Edison to OES, which the 
NRC approved by order dated December 20, 1995. The other licensees 
would remain the same and would not be affected by the proposed 
transfer. On May 8, 1996, a notice of proposed ownership transfer was 
published in the Federal Register (61 FR 20840), and on June 25, 1996, 
an Environmental Assessment and Finding of No Significant Impact was 
published in the Federal Register (61 FR 32860).
    The transfer of License No. NPF-58 is subject to the consent of the 
NRC as described in 10 CFR 50.80(a). Ohio Edison and OES will remain 
licensees of PNPP Unit 1. Ohio Edison would make sufficient payments to 
OES 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 ``common facilities'' transferred to OES. OES 
is 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 are 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 is bound by the existing antitrust 
license conditions, 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 letter of 
December 29, 1995, and the application of December 28, 1995, and other 
information before the Commission, the NRC staff finds that the 
transfer of Ohio Edison's 12.58-percent ownership interest in the 
``common facilities'' to OES will not be inimical to the common defense 
and security or to the health and safety of the public. 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

[[Page 40013]]

license with respect to such 12.58-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 August 30, 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 20555-0001, and to Gerald Charnoff, Esquire, of 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 from 
Ohio Edison to OES, subject to the following: Should the transfer not 
be completed by September 30, 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 December 
28, 1995, under cover of letter dated December 29, 1995, which is 
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.

    For the Nuclear Regulatory Commission.

    Dated at Rockville, Maryland this 25th day of July 1996.
William T. Russell,
Director, Office of Nuclear Reactor Regulation.
[FR Doc. 96-19436 Filed 7-30-96; 8:45 am]
BILLING CODE 7590-01-P