[Federal Register Volume 61, Number 214 (Monday, November 4, 1996)]
[Notices]
[Pages 56714-56716]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 96-28222]


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NUCLEAR REGULATORY COMMISSION
[Docket Nos. 50-317, 50-318, and 72-8]


Baltimore Gas and Electric Company; (Calvert Cliffs Nuclear Power 
Plant, Unit Nos. 1 and 2 and the Independent Spent Fuel Storage 
Installation); Order Approving Transfer of Licenses for Calvert Cliffs 
Nuclear Power Plant, Unit Nos. 1 and 2 and the Independent Spent Fuel 
Storage Installation

I

    Baltimore Gas and Electric Company (BGE) is the licensee for 
Calvert Cliffs Nuclear Power Plant, Unit Nos. 1 and 2, and the 
associated Independent Spent Fuel Storage Installation. BGE has the 
exclusive responsibility for the construction, operation, and 
maintenance of Calvert Cliffs Nuclear Power Plant, Unit Nos. 1 and 2 
and the Independent Spent Fuel Storage Installation, as reflected in 
Operating License Nos. DPR-53, DPR-69 and Material License No. SNM-2505 
of the U.S. Nuclear Regulatory Commission (NRC) issued on July 31, 1974 
and November 30, 1976, and November 25, 1992, respectively. The 
facility is located on the western shore of the Chesapeake Bay, in 
Calvert County, Maryland.

[[Page 56715]]

II

    By letter dated April 5, 1996, BGE submitted its request for 
approval pursuant to Sections 50.80, 50.90, 72.50, and 72.56 of Title 
10 of the Code of Federal Regulations, of the transfer of and 
amendments to Operating Licenses Nos. DPR-53 and DPR-69 and Material 
License No. SNM-2505 for Calvert Cliffs Nuclear Power Plant, Unit Nos. 
1 and 2 and the Independent Spent Fuel Storage Installation. On May 22, 
1996, June 12, 1996, and July 15, 1996, notices of the proposed actions 
were published in the Federal Register (61 FR 25697, 29771, 36914).
    The license transfers and amendments are requested in connection 
with a pending merger between BGE and Potomac Electric Power Company 
(PEPCO) into Constellation Energy Corporation. The proposed license 
transfers would transfer authority to possess and operate Calvert 
Cliffs Nuclear Power Plant, Unit Nos. 1 and 2 and the Independent Spent 
Fuel Storage Installation (ISFSI) from BGE to Constellation Energy 
Corporation. The proposed amendments would change the licenses to 
reflect the transfer of the licenses by substituting Constellation 
Energy Corporation in place of BGE as licensee for Calvert Cliffs 
Nuclear Power Plant, Unit Nos. 1 and 2, and the ISFSI.
    The technical qualifications of Constellation Energy Corporation to 
carry out its responsibilities under the operating licenses will be the 
same as those of BGE. The transfer of the operating licenses to 
Constellation Energy Corporation involves no significant changes to 
either the technical organization or staff responsible for operating 
the facility. Both before and after the transfer, essentially the same 
BGE nuclear organization and staff will be responsible for the 
operation and maintenance of Calvert Cliffs. The transfer requires no 
change in the numbers and qualifications of personnel who operate 
Calvert Cliffs. Although specific individuals may join or leave the 
nuclear staff, the technical and administrative abilities will remain 
essentially unchanged.
    The Constellation Energy Corporation management directly 
responsible for Calvert Cliffs will be experienced BGE Nuclear 
Managers. The transfer involves no changes in the training program or 
procedures applicable to the Calvert Cliffs operating organization. The 
current Calvert Cliffs personnel training program and operating 
organization are set forth in the updated final safety analysis report 
for Calvert Cliffs. Given that Constellation Energy Corporation 
management directly responsible for Calvert Cliffs will be BGE Nuclear 
Managers, the transfer will result in no adverse impact with respect to 
technical qualifications.
    BGE proposes to restructure itself by merging with PEPCO. The 
company formed as a result of the merger would be Constellation Energy 
Corporation, which is currently a subsidiary of BGE and PEPCO formed 
for the purpose of consummating the merger and would become the owner 
and operating licensee for the two-unit Calvert Cliffs Nuclear Power 
Plant, as well as the ISFSI.
    BGE indicates that the purpose of the merger is

* * * to achieve benefits for BGE's and PEPCO's shareholders, 
customers and communities that would not be available if they were 
to remain separate companies. The benefits are expected to be 
achieved through significant reduction in operating costs (estimated 
at approximately $1.3 billion in nominal dollars, net of costs to 
achieve, over a 10-year period) * * *. (Application dated April 5, 
1996 to Transfer and Amend Operating License Nos. DPR-53 and DPR-69, 
and ISFSI license SNM-2505, Calvert Cliffs Nuclear Power Plant, 
Attachment 1, p. 5.)

    BGE indicates that Constellation Energy Corporation will be an 
``electric utility'' as defined in 10 CFR 50.2. That is, Constellation 
Energy Corporation will continue to be engaged in the generation, 
transmission, and distribution of electricity and will remain subject 
to the rate regulatory authority of the Maryland Public Service 
Commission, the District of Columbia Public Service Commission, and the 
Federal Energy Regulatory Commission. Based on the information provided 
in BGE's application, the staff finds that there will be no near-term 
substantive change in Constellation Energy Corporation's financial 
ability to contribute to the operations and decommissioning of its 
Calvert Cliffs units as a result of the proposed merger. Thus, pursuant 
to 10 CFR 50.33(f), Constellation Energy Corporation is exempt from 
further financial qualifications review as an electric utility. The 
staff finds that the financial information provided in BGE's 
application for transfer of SNM-2505, as required by 10 CFR 72.22(e), 
demonstrates that funding for operation and decommissioning of the 
ISFSI will not be adversely affected by the merger.
    Based on the above, the staff concludes that Constellation Energy 
Corporation will be financially qualified with respect to holding the 
licenses for the Calvert Cliffs Nuclear Power Plant, Unit Nos. 1 and 2 
and the Independent Spent Fuel Storage Installation.
    The Calvert Cliffs Nuclear Power Plant received its construction 
permit (CP) prior to enactment of Section 105 of the Atomic Energy Act. 
Nuclear plants that received CPs prior to enactment of Section 105 in 
December 1970 were issued 104b licenses rather than 103 commercial 
licenses and were grandfathered for purposes of antitrust review. 
Consequently, the staff is not conducting a significant change 
antitrust review as a result of the proposed merger involving BGE and 
PEPCO.
    BGE has asserted that Constellation Energy Corporation will not be 
owned, controlled or dominated by an alien, foreign corporation or 
foreign government and will not be acting as an agent or representative 
of any other person.
    On the basis of a review of the information in the letter of April 
5, 1996, and other information before the Commission, the NRC staff 
finds that the transfer of the Calvert Cliffs Nuclear Power Plant, 
Units No. 1 and No. 2 and Independent Spent Fuel Storage Installation 
operating licenses to Constellation Energy Corporation, will not 
adversely affect protection of public health and safety or the common 
defense and security. Therefore, the NRC staff concludes that 
Constellation Energy Corporation is qualified to be the holder of the 
licenses, subject to conditions set forth herein and the transfer of 
the licenses is otherwise consistent with applicable provisions of law, 
regulations, and orders issued by the Commission. An environmental 
assessment and finding of no significant impact was published in the 
Federal Register on October 10, 1996 (61 FR 53241).

III

    Accordingly, pursuant to Sections 161b, 161i, and 184 of the Atomic 
Energy Act of 1954, as amended, 42 USC Secs. 2201(b), 2201(i), and 
2234, and 10 CFR 50.80 and 10 CFR 72.50, It is hereby Ordered that the 
Commission consents to the proposed transfer of the licenses described 
herein between BGE and Constellation Energy Corporation subject to the 
following: (1) amendments to the licenses described herein, consistent 
with the contents of and reflecting this Order, must be issued and 
become effective as of the date of issuance; (2) should the transfer of 
the licenses not be consummated by December 31, 1997, this Order shall 
become null and void, provided, however, on application and for good 
cause shown, such date may be extended.

[[Page 56716]]

IV

    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.
    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 Secretary of the 
Commission, U.S. Nuclear Regulatory Commission, Washington, DC 20555-
0001, Attention: Chief Docketing and Services Section, 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 J. E. Silbert, Esquire, Shaw, 
Pittman, Potts and Trowbridge, 2300 N Street NW., Washington, DC 20037.
    This Order is effective upon issuance. For further details with 
respect to this action, see the application dated April 5, 1996, 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 Calvert County Library, 
Prince Frederick, Maryland 20678.

    Dated at Rockville, Maryland, this 18th day of October 1996.

    For the Nuclear Regulatory Commission.
Frank J. Miraglia, Jr.,
Acting Director, Office of Nuclear Reactor Regulation.
Carl J. Paperiello,
Director, Office of Nuclear Material Safety and Safeguards.
[FR Doc. 96-28222 Filed 11-1-96; 8:45 am]
BILLING CODE 7590-01-P