[Federal Register Volume 62, Number 86 (Monday, May 5, 1997)]
[Notices]
[Pages 24515-24516]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 97-11577]


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NUCLEAR REGULATORY COMMISSION

[Docket No. 50-331]


IES Utilities Inc.; Central Iowa Power Cooperative; Corn Belt 
Power Cooperative; Duane Arnold Energy Center; Environmental Assessment 
and Finding of No Significant Impact

    The U.S. Nuclear Regulatory Commission (the Commission) is 
considering the issuance of an order approving, under 10 CFR 50.80, an 
application regarding the proposed merger involving IES Industries 
(IESI), WPL Holdings, Inc., and Interstate Power Corporation (IPC). 
IESI is the parent company of IES Utilities Inc. (IESU). IESU is the 
licensee for the Duane Arnold Energy Center (DAEC) located in Linn 
County, Iowa.

Environmental Assessment

Identification of the Proposed Action

    By letter dated September 27, 1996, IESU informed the Commission 
that under a merger agreement between IESI, WPL Holdings, Inc., and 
IPC, IESI will merge with and into WPL Holdings, Inc., to be renamed 
Interstate Energy Corporation (IEC), of which IESU would become a 
wholly-owned subsidiary. IESU will remain the holder of its license for 
DAEC. Under the restructuring, current stockholders of IESI will become 
stockholders of IEC pursuant to a formula stipulated in the merger 
agreement. IESU requested the Commission's approval, pursuant to 10 CFR 
50.80. IESU would remain an electric utility as defined in 10 CFR 50.2, 
engaged in the generation, transmission, and distribution of electric 
energy for wholesale and retail sale, subject to the rate regulation of 
the Iowa Utilities Board and the Federal Energy Regulatory Commission.

The Need for the Proposed Action

    Approval under 10 CFR 50.80 is needed to the extent the proposed 
transactions effect an indirect transfer of control of the DAEC 
license. IESI believes the proposed combination will offer significant 
strategic and financial benefits, including: (1) Maintenance of 
competitive rates that will improve the combined entity's ability to 
meet the challenges of the increasingly competitive environment in the 
utility industry; (2) reduced operating costs resulting from 
integration of corporate and administrative functions; (3) reduced 
electric production costs through the joint dispatch of systems; (4) 
greater purchasing power for goods and services; (5) more efficient 
pursuit of diversification into non-utility areas; (6) increased 
customer diversity and geographic diversity of service territories; and 
(7) expanded management resources and ability to select leadership from 
a larger and more diverse management pool.

Environmental Impacts of the Proposed Action

    The Commission has reviewed the proposed action and concludes that 
there will be no changes to the facility or its operation as a result 
of the proposed action. Accordingly, the NRC staff concludes that there 
are no significant radiological environmental impacts associated with 
the proposed action. With regard to potential non-radiological impacts, 
the proposed action will not affect non-radiological plant effluents 
and will have no other environmental impact. Accordingly, the NRC staff 
concludes that there are no significant non-radiological environmental 
impacts associated with the proposed action.

Alternatives to the Proposed Action

    As an alternative to the proposed action, the staff considered 
denial of the proposed action. Denial of the application would result 
in no change in current environmental impacts. The environmental 
impacts of the proposed action and the alternative action are 
identical.

Alternative Use of Resources

    This action does not involve the use of any resources not 
previously considered in the Final Environmental Statement for the DAEC 
dated March 1973.

Agencies and Persons Consulted

    In accordance with NRC policy, on February 21, 1997, the staff 
consulted with an official of the Iowa Utilities Board regarding the 
environmental impact of the proposed action. The state official had no 
comments.

Finding of No Significant Impact

    Based upon the environmental assessment, the Commission concludes 
that the proposed action will not have a significant effect on the 
quality of the human environment. Accordingly, the Commission has 
determined not to prepare an environmental impact statement for the 
proposed action.
    For further details with respect to this proposed action, see the 
licensee's letter dated September 27, 1996, with the following 
exhibits: (A) Information to support the request for the Commission's 
consent; and (B) A copy of the merger agreement executed among IESI, 
WPL Holdings, Inc., and IPC. These documents 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 Cedar Rapids Public Library, 500 First 
Street, SE., Cedar Rapids, Iowa 52401.

    Dated at Rockville, Maryland, this 29th day of April 1997.


[[Page 24516]]


    For the Nuclear Regulatory Commission.
Gail Marcus,
Director, Project Directorate III-3, Division of Reactor Projects III/
IV, Office of Nuclear Reactor Regulation.
[FR Doc. 97-11577 Filed 5-2-97; 8:45 am]
BILLING CODE 7590-01-P