[Federal Register Volume 63, Number 19 (Thursday, January 29, 1998)]
[Notices]
[Pages 4495-4496]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 98-2181]


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NUCLEAR REGULATORY COMMISSION

[Docket Nos. 50-334 and 50-412]


In the Matter of The Cleveland Electric Illuminating Company, et 
al; Order Approving Application Regarding Merger Agreement Between DQE, 
Inc. and Allegheny Power System, Inc.

I

    The Cleveland Electric Illuminating Company (CEI), Duquesne Light 
Company (DLC), Ohio Edison Company (OE), Pennsylvania Power Company 
(Penn Power), and Toledo Edison Company (TE) are the licensees of 
Beaver Valley Power Station, Unit Nos. 1 and 2 (BVPS-1 and BVPS-2). DLC 
acts as agent for the other licensees and has exclusive responsibility 
for and control over the physical construction, operation, and 
maintenance of BVPS-1 and BVPS-2 as reflected in Facility Operating 
Licenses Nos. DPR-66 and NPF-73. The Nuclear Regulatory Commission 
(NRC) issued Licenses Nos. DPR-66 and NPF-73 on July 2, 1976, and on 
August 14, 1987, respectively, pursuant to Part 50 of Title 10 of the 
Code of Federal Regulations (10 CFR Part 50). The facility is located 
on the southern shore of the Ohio River in Beaver County, Pennsylvania, 
approximately 22 miles northwest of Pittsburgh and 5 miles east of East 
Liverpool, Ohio.

II

    Under cover of a letter dated August 1, 1997, DLC submitted an 
application for consent under 10 CFR 50.80 regarding a proposed merger 
of DQE, Inc. (the parent holding company of DLC) and Allegheny Power 
System, Inc., which would result in DQE, Inc. becoming a wholly owned 
subsidiary of Allegheny Power System, Inc. Allegheny Power System, Inc. 
would change its name to Allegheny Energy, Inc. (Allegheny Energy). 
CEI, OE, Penn Power, and TE are not involved in the merger. 
Supplemental information was submitted by letter dated October 30, 
1997.
    Under the proposed merger, DLC will become an indirect subsidiary 
of Allegheny Energy by reason of DQE, Inc. becoming a subsidiary of 
Allegheny Energy. DLC and the other current licensees will continue to 
hold the licenses, and no direct transfer of the licenses will result 
from the merger. On September 12, 1997, a Notice of Consideration of 
Approval of Application Regarding Proposed Corporate Restructuring was 
published in the Federal Register (62 FR 48113). An Environmental 
Assessment and Finding of No Significant Impact was published in the 
Federal Register on September 25, 1997 (62 FR 50411).
    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 application and letters of August 1, 1997, and October 
30, 1997, the NRC staff has determined that the proposed merger will 
not affect the qualifications of DLC as holder of Facility Operating 
Licenses Nos. DPR-66 and NPF-73, and that the transfer of control of 
the licenses, 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 
January 23, 1998.

III

    Accordingly, pursuant to Sections 161b, 161i, 161o. and 184 of the 
Atomic Energy Act of 1954, as amended, 42 USC 2201(b), 2201(i), 
2201(o), and 2234; and 10 CFR 50.80, It is hereby ordered

[[Page 4496]]

that the Commission approve the application regarding the merger 
agreement between DQE, Inc. and Allegheny Power System, Inc. subject to 
the following: (1) DLC 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 DLC to its first- or second-tier 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 DLC's consolidated net utility plant, as recorded on DLC's books of 
account; and (2) should the merger not be completed by December 31, 
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 March 2, 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 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 John O'Neill, Esquire, 
Shaw, Pittman, Potts and Trowbridge, 2300 N Street, NW., Washington, DC 
20037, attorney for DLC.
    For further details with respect to this action, see the 
application submitted under cover of a letter dated August 1, 1997, and 
supplemental letter dated October 30, 1997, and the safety evaluation 
dated January 23, 1998, 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 B. F. Jones Memorial Library, 663 Franklin Avenue, 
Aliquippa, PA 15001.

    Dated at Rockville, Maryland, this 23rd day of January 1998.

    For the Nuclear Regulatory Commission.
Samuel J. Collins,
Director, Office of Nuclear Reactor Regulation.
[FR Doc. 98-2181 Filed 1-28-98; 8:45 am]
BILLING CODE 7590-01-P