[Federal Register Volume 62, Number 171 (Thursday, September 4, 1997)]
[Notices]
[Pages 46779-46780]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 97-23472]


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NUCLEAR REGULATORY COMMISSION

[Docket No. 50-331]


Order Approving Application Regarding Merger Agreement Between 
IES Industries Inc., WPL Holdings, Inc., and Interstate Power 
Corporation

    In the Matter of IES Utilities Inc. (Duane Arnold Energy 
Center).

I

    IES Utilities Inc. (IESU) is a wholly owned subsidiary of IES 
Industries Inc. (IESI). IESU is the operator and a 70-percent owner of 
the Duane Arnold Energy Center (DAEC). IESU and the minority owners, 
Central Iowa Power Cooperative and Corn Belt Power Cooperative, hold 
Facility Operating License DPR-49 issued by the U.S. Atomic Energy 
Commission pursuant to part 50 of Title 10 of the Code of Federal 
Regulations (10 CFR part 50) on February 22, 1974. IESU has authority 
to possess, use, and operate the facility, and the minority owners have 
the authority to possess the facility. DAEC is located in Linn County, 
Iowa.

II

    By letter dated September 27, 1996, IESU informed the U.S. Nuclear 
Regulatory Commission (the Commission) of a proposed merger of IESI, 
WPL Holdings, Inc. (WPLH), and Interstate Power Corporation (IPC). 
Under the merger agreement, IESI will merge with and into WPLH, of 
which IESU would become a wholly owned subsidiary, and IPC will become 
a subsidiary of WPLH. In addition, WPLH will be renamed Interstate 
Energy Corporation (IEC). IESU will remain the holder of its license 
for DAEC. Furthermore, current stockholders of IESI and IPC will become 
stockholders of IEC, in addition to current WPLH stockholders, pursuant 
to a formula stipulated in the merger agreement. IESU requested the 
Commission's approval, pursuant to 10 CFR 50.80,

[[Page 46780]]

regarding the proposed transactions to the extent they effect an 
indirect transfer of control of the DAEC license. On February 26, 1997, 
a notice of consideration of approval of application regarding 
corporate restructuring was published in the Federal Register (62 FR 
8783). An Environmental Assessment and Finding of No Significant Impact 
was published in the Federal Register on May 5, 1997 (62 FR 24515).
    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 September 27, 1996, and other information 
before the Commission, the NRC staff has determined that the proposed 
merger will not affect the qualifications of IESU as a holder of the 
license, and that the transfer of control of the license, to the extent 
effected by the proposed 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 August 28, 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 IESI, WPLH, and IPC subject to the following: (1) IESU 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 IESU 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 IESU's consolidated net utility 
plant, as recorded on IESU's books of account; and (2) should the 
merger not be completed by June 30, 1998, this Order shall become null 
and void unless, upon application and for good cause shown, this date 
is extended.
    This Order is effective upon issuance.

IV

    By October 6, 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 
also should 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 Alvin H. Gutterman, 
Morgan, Lewis and Bockius LLP, 1800 M Street, NW., Washington, DC 
20036-5869, attorney for IESU.
    For further details with respect to this action, see the 
application dated September 27, 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 Cedar Rapids Public Library, 500 First 
Street, SE, Cedar Rapids, IA 52401.

    Dated at Rockville, Maryland, this 28th day of August, 1997.

    For the Nuclear Regulatory Commission.
Samuel J. Collins,
Director, Office of Nuclear Reactor Regulation.
[FR Doc. 97-23472 Filed 9-3-97; 8:45 am]
BILLING CODE 7590-01-P