[Federal Register Volume 62, Number 122 (Wednesday, June 25, 1997)]
[Notices]
[Pages 34319-34320]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 97-16614]


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NUCLEAR REGULATORY COMMISSION

[Docket No. 50-346]


Toledo Edison Company; et al.; Order Approving Application 
Regarding Merger Agreement Between Centerior Energy Corporation and 
Ohio Edison Company

I

    Toledo Edison Company (TE), The Cleveland Electric Illuminating 
Company (CEI), and Centerior Service Company (CSC) are the licensees of 
the Davis-Besse Nuclear Power Station, Unit 1. TE and CSC (both of 
which are wholly owned subsidiaries of Centerior Energy Corporation) 
are authorized to act as agents for CEI, and have exclusive 
responsibility and control over the physical construction, operation, 
and maintenance of the facility as reflected in Operating License No. 
NPF-3. The U.S. Nuclear Regulatory Commission (NRC) issued License No. 
NPF-3 on April 22, 1977, pursuant to Part 50 of Title 10 of the Code of 
Federal Regulations (10 CFR Part 50). The facility is located on the 
shore of Lake Erie in Ottawa County, Ohio, approximately 21 miles east 
of Toledo, Ohio.

II

    By letter dated December 13, 1996, TE and CSC, on behalf of 
themselves and CEI, informed the Commission of a proposed merger of 
Centerior Energy Corporation and Ohio Edison Company (OE), resulting in 
the formation of a new holding company, FirstEnergy Corporation, which 
would replace Centerior Energy Corporation. Supplemental information 
was submitted by letter dated February 12, 1997.
    Under the proposed merger, TE, CEI, CSC, and OE will become wholly 
owned subsidiaries of FirstEnergy Corporation. The current licensees 
will continue to hold the license, and no direct transfer of the 
license will result from the merger. On April 14, 1997, a notice of 
consideration of approval of application regarding corporate 
restructuring was published in the Federal Register (62 FR 18156). An 
Environmental Assessment and Finding of No Significant Impact was 
published in the Federal Register on May 13, 1997 (62 FR 26330).
    Under 10 CFR 50.80, no license shall be transferred, directly or 
indirectly, through transfer of control of the license, unless the 
Commission gives its consent in writing. Upon review of the information 
submitted in the letter of December 13, 1996, and other information 
before the Commission, the NRC staff has determined that the proposed 
merger will not affect the qualifications of TE, CEI, and CSC as 
holders of Facility Operating License No. NPF-3, and that the transfer 
of control of the license, to the extent effected by the merger, is 
otherwise consistent with applicable provisions of law, regulations, 
and orders issued by the Commission, subject to the conditions set 
forth herein. These findings are supported by a Safety Evaluation dated 
June 19, 1997.

III

    Accordingly, pursuant to Sections 161b, 161i, 161o, and 184 of the 
Atomic Energy Act of 1954, as amended; 42 U.S.C. 2201(b), 2201(i), 
2201(o), and 2234; and 10 CFR 50.80, It Is Hereby Ordered that the 
Commission approves the application regarding the merger agreement 
between Centerior Energy Corporation and OE, subject to the following: 
(1) TE, CEI, and CSC shall provide the Director of the Office of 
Nuclear Reactor Regulation a copy of any application, at the time it is 
filed, to transfer (excluding grants of security interests or liens) 
from such licensee to its parent or to any other affiliated company, 
facilities for the production, transmission, or distribution of 
electric energy having a depreciated book value exceeding 10 percent of 
such licensee's consolidated net utility plant, as recorded on the 
licensee's books of account; and (2) should the merger not be completed 
by June 30, 1998, this Order shall become null and void

[[Page 34320]]

unless, upon application and for good cause shown, this date is 
extended.
    This Order is effective upon issuance.

IV

    By July 25, 1997, 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 shall 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: Rulemakings and Adjudications Staff, 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.
    For further details with respect to this action, see the 
application dated December 13, 1996, as supplemented February 12, 1997, 
and the Safety Evaluation dated June 19, 1997, 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 University of Toledo, William Carlson 
Library, Government Documents Collection, 2801 West Bancroft Avenue, 
Toledo, Ohio.

    Dated at Rockville, Maryland, this 19th day of June 1997.

    For The U.S. Nuclear Regulatory Commission.
Frank J. Miraglia, Jr.,
Acting Director, Office of Nuclear Reactor Regulation.
[FR Doc. 97-16614 Filed 6-24-97; 8:45 am]
BILLING CODE 7590-01-P