[Federal Register Volume 63, Number 7 (Monday, January 12, 1998)]
[Notices]
[Pages 1876-1877]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 98-654]


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NUCLEAR REGULATORY COMMISSION

[Docket No. 50-410]


In the Matter of Long Island Lighting Company; (Nine Mile Point 
Nuclear Station Unit No. 2); Order Approving Application Regarding 
Acquisition of Long Island Lighting Company by Long Island Power 
Authority

I

    Long Island Lighting Company (LILCO) is licensed by the U.S. 
Nuclear Regulatory Commission (NRC or Commission) to own and possess an 
18-percent interest in Nine Mile Point Nuclear Station, Unit 2 (NMP2), 
under Facility Operating License No. NPF-69, issued by the Commission 
on July 2, 1987. In addition to LILCO, the other owners who may 
possess, but not operate, NMP2 are New York State Electric & Gas 
Corporation with an 18-percent interest, Rochester Gas and Electric 
Corporation with a 14-percent interest, and Central Hudson Gas & 
Electric Corporation with a 9-percent interest. Niagara Mohawk Power 
Company (NMPC) owns a 41-percent interest in NMP2, is authorized to act 
as agent for the other owners, and has exclusive responsibility and 
control over the operation and maintenance of NMP2. NMP2 is located in 
the town of Scriba, Oswego County, New York.
    The Long Island Power Authority (LIPA) is a corporate municipal 
instrumentality of New York State, created by State legislation in 1986 
with authority to acquire all or any part of LILCO's securities or 
assets.

II

    Under cover of a letter dated September 8, 1997, from its counsel, 
LILCO submitted an application for consent by the Commission, pursuant 
to 10 CFR 50.80, regarding two proposed restructuring actions, each of 
which would result in the indirect transfer of the operating license 
for NMP2 to the extent held by LILCO. LILCO revised the application on 
October 8, 1997, such that the pending request for consent now involves 
only a proposed acquisition of LILCO by LIPA. LILCO modified and 
supplemented the application on November 7, 1997, to indicate that 
subsequent to the proposed acquisition by LIPA, LILCO would provide 
notification to the NRC regarding any future transfer of significant 
LILCO assets.
    According to the application, LIPA proposes to acquire LILCO by 
purchasing its stock through a cash merger, at a time when LILCO 
consists of its electric transmission and distribution system, its 
retail electric business, substantially all of its current electric 
regulatory assets, and its 18-percent share in NMP2. LILCO thereby 
would become a subsidiary of LIPA. After this restructuring, LILCO 
would continue to exist as an ``electric utility'' as defined in 10 CFR 
50.2, providing the same electric utility services it did immediately 
preceding the restructuring. LILCO would continue to be a licensee of 
NMP2, and no direct transfer of the operating license or interests in 
the station would result from the proposed restructuring. The 
transaction would not involve any change to either the management 
organization or technical personnel of NMPC, which has exclusive 
responsibility under the operating license for operating and 
maintaining

[[Page 1877]]

NMP2, and which is not involved in the proposed restructuring.
    Notice of this application for approval was published in the 
Federal Register on November 7, 1997 (62 FR 60286), and an 
Environmental Assessment and Finding of No Significant Impact was 
published in the Federal Register on December 18, 1997 (62 FR 66400).
    Under 10 CFR 50.80, no license 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 application of September 8, as modified 
and supplemented by submittals dated October 8 and November 7, 1997, 
the NRC staff has determined that the acquisition and restructuring of 
LILCO as a subsidiary of LIPA will not affect the qualifications of 
LILCO as a holder of the license, and that the transfer of control of 
the license for NMP2, to the extent effected by the acquisition and 
restructuring, 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 December 29, 1997.

III

    Accordingly, pursuant to Sections 161b, 161i, 161o, and 184 of the 
Atomic Energy Act of 1954, as amended, 42 U.S.C. Secs. 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 proposed 
acquisition of LILCO by LIPA, subject to the following: (1) LILCO 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 LILCO to LIPA, or to any 
other affiliated company, facilities for the production, transmission, 
or distribution of electric energy having a depreciated book value 
exceeding 10 percent (10%) of LILCO's consolidated net utility plant, 
as recorded on LILCO's books of account, and (2) should the acquisition 
and restructuring of LILCO by LIPA not be completed by December 31, 
1998, this Order shall become null and void, provided, however, on 
application and for good cause shown, such date may be extended.

IV

    By February 5, 1998, 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 
that 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 the 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 11555 Rockville Pike, Rockville, Maryland, between 7:45 
a.m. and 4:15 p.m. Federal workdays, by the above date. Copies should 
be also 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 John D. Leonard, Jr., Vice 
President Special Projects, Long Island Lighting Company, 1800 Old Walt 
Whitman Road, Melville, New York 11747.
    For further details with respect to this Order, see the application 
for approval dated September 8, 1997, as modified and supplemented by 
letters dated October 8 and November 7, 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 Reference and Documents Department, 
Penfield Library, State University of New York, Oswego, New York 13126.

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

    For the Nuclear Regulatory Commission.
Samuel J. Collins,
Director, Office of Nuclear Reactor Regulation.
[FR Doc. 98-654 Filed 1-9-98; 8:45 am]
BILLING CODE 7590-01-P