[Federal Register Volume 62, Number 76 (Monday, April 21, 1997)]
[Notices]
[Pages 19358-19359]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 97-10213]


=======================================================================
-----------------------------------------------------------------------

NUCLEAR REGULATORY COMMISSION

[Docket Nos. 50-498 and 50-499]


Order Approving Application Regarding the Formation of an 
Operating Company and Transfer of Operating Authority

    In the Matter of: Housing Lighting and Power Company; City 
Public Service Board of San Antonio; Central Power and Light 
Company; City of Austin, Texas; (South Texas Project, Units 1 and 
2).

I

    Houston Lighting and Power Company (HL&P), City Public Service 
Board of San Antonio, Central Power and Light Company, and City of 
Austin, Texas, are the owners of the South Texas Project, Units 1 and 2 
(STP). The owners hold Facility Operating Licenses Nos. NPF-76 and NPF-
80 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 22, 1988, and March 28, 1989, respectively. Under these 
licenses, HL&P is authorized to act for the owners and has exclusive 
responsibility for and control over the physical construction, 
operation, and maintenance of STP. STP is located in Matagorda County, 
Texas.

II

    By letter dated August 23, 1996, as supplemented by letters dated 
October 1 and 15, 1996, and January 28, 1997, HL&P requested approval 
of the transfer of operating authority under the licenses to a new 
operating company and issuance of conforming amendments. HL&P proposes 
to transfer operating authority under the licenses to a new operating 
company to allow it to use

[[Page 19359]]

and operate STP and to possess and use related licensed nuclear 
materials in accordance with the same conditions and authorizations 
included in the current operating licenses. HL&P has also requested the 
issuance of license amendments reflecting the transfer of operating 
authority. The new operating company would be formed by the owners to 
become the licensed operator for STP and would have exclusive control 
over the operation and maintenance of the facility. The present plant 
organization, the oversight organizations, and the engineering and 
support organizations would be transferred essentially intact from HL&P 
to the new operating company. The technical qualifications of the new 
operating company organization, therefore, would be at least equivalent 
to those of the existing organization.
    Under the proposed arrangement, ownership of STP would remain 
unchanged, with each owner retaining its current ownership interest. 
The new operating company would not own any portion of STP. Likewise, 
the owners' entitlement to capacity and energy from STP would not be 
affected by the proposed change in operating responsibility for STP 
from HL&P to the new operating company. The owners would continue to 
provide all funds for operation, maintenance, and decommissioning by 
the operating company of STP. The responsibility of the owners would 
include funding for any emergency situations that might arise at STP.
    HL&P requested the Commission's approval of the transfer of 
operating authority to a new operating company and issuance of 
conforming license amendments pursuant to 10 CFR 50.80 and 50.90. 
Notice of this application for approval and an opportunity for a 
hearing was published in the Federal Register on November 7, 1996 (61 
FR 57719), and an Environmental Assessment and Finding of No 
Significant Impact was published in the Federal Register on November 
18, 1996 (61 FR 58710).
    Under 10 CFR 50.80, no license, or any right thereunder, 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 letters of August 23, 
October 1 and 15, 1996, and January 28, 1997, and other information 
before the Commission, the NRC staff has determined that the proposed 
new operating company is qualified to hold the licenses to the extent 
and for the purposes described above, and that the transfer of the 
licenses as described above is otherwise consistent with applicable 
provisions of law, regulations, and orders issued by the Commission. 
These findings are supported by a Safety Evaluation dated April 8, 
1997.

III

    Accordingly, pursuant to Sections 105, 161b, 161i, and 184 of the 
Atomic Energy Act of 1954, as amended, 42 U.S.C. Secs. 2135, 2201(b), 
2201(i), and 2234, and 10 CFR 50.80, It is hereby ordered that the 
Commission consents to the transfer of the licenses as described herein 
to the proposed new operating company, subject to the following 
conditions:

    (1) The new operating company, hereafter referred to as STPNOC 
[STP Nuclear Operating Company], shall not market or broker power or 
energy from South Texas Project, Units 1 and 2. The Owners are 
responsible and accountable for the actions of STPNOC to the extent 
that said actions affect the marketing or brokering of power or 
energy from South Texas Project, Units 1 and 2, and, in any way, 
contravene the antitrust conditions in Appendix C of the licenses; 
and
    (2) Should the formation of the new operating company and 
transfer of operating authority not be completed by March 31, 1998, 
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.
    Action on the proposed conforming license amendments will be taken 
upon implementation of the transfer approved by this Order.
    For further details with respect to this Order, see the licensee's 
application dated August 23, 1996, as supplemented by letters dated 
October 1 and 15, 1996, and January 28, 1997, which are available for 
public inspection at the Commission's Public Document Room, the Gelman 
Building, 2120 L Street, N.W., Washington, DC, and at the local public 
document room located at the Wharton County Junior College, J. M. 
Hodges Learning Center, 911 Boling Highway, Wharton, TX 77488.

    Dated at Rockville, Maryland, this 8th day of April 1997.

    For the Nuclear Regulatory Commission.
Samuel J. Collins,
Director, Office of Nuclear Reactor Regulation.
[FR Doc. 97-10213 Filed 4-18-97; 8:45 am]
BILLING CODE 7590-01-P