[Federal Register Volume 63, Number 52 (Wednesday, March 18, 1998)]
[Notices]
[Page 13287]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 98-6973]



[[Page 13287]]

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NUCLEAR REGULATORY COMMISSION

[Docket No. 50-440]


In the Matter of the Cleveland Electric Illuminating Company, 
Centerior Service Company, Duquesne Light Company, Ohio Edison Company, 
OES Nuclear, Inc., Pennsylvania Power Company, Toledo Edison Company 
(Perry Nuclear Power Plant, Unit 1); Order Approving Application 
Regarding Merger Agreement Between DQE, Inc., and Allegheny Power 
System, Inc.

I

    The Cleveland Electric Illuminating Company (CEI), Centerior 
Service Company (CSC), Duquesne Light Company (DLC), Ohio Edison 
Company, OES Nuclear, Inc., Pennsylvania Power Company, and Toledo 
Edison Company are the licensees of Perry Nuclear Power Plant, Unit 1 
(PNPP). CEI and CSC act as agents for the other licensees and have 
exclusive responsibility for and control over the physical 
construction, operation, and maintenance of PNPP as reflected in 
Facility Operating License No. NPF-58. The Nuclear Regulatory 
Commission (NRC) issued License No. NPF-58 on March 18, 1986, pursuant 
to Part 50 of Title 10 of the Code of Federal Regulations (10 CFR Part 
50). The facility is located on the shores of Lake Erie in Lake County, 
Ohio, approximately 35 miles northeast of Cleveland, 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, CSC, Ohio Edison Company, OES Nuclear, Inc., Pennsylvania Power 
Company, and Toledo Edison Company 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 license, and no direct transfer of the license will result 
from the merger. On October 21, 1997, a Notice of Consideration of 
Approval of Application Regarding Proposed Corporate Restructuring was 
published in the Federal Register (62 FR 54655). An Environmental 
Assessment and Finding of No Significant Impact was published in the 
Federal Register on October 21, 1997 (62 FR 54657).
    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 
License No. NPF-58, 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 March 11, 1998.

III

    Accordingly, pursuant to Sections 161b, 161i, 161o, and 184 of the 
Atomic Energy Act of 1954, as amended; 42 USC 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 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 with 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 April 17, 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, Esq., Shaw, 
Pittman, Potts and Trowbridge, 2300 N Street, NW., Washington, DC 
20037, attorney for the licensee.
    For further details with respect to this action, see DLC's 
application dated August 1, 1997, and supplemental letter dated October 
30, 1997, and the safety evaluation dated March 11, 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 Perry Public Library, 
3753 Main Street, Perry, OH.

    For the Nuclear Regulatory Commission.

    Dated at Rockville, Maryland, this 11th day of March 1998.

Samuel J. Collins,
Director, Office of Nuclear Reactor Regulation.
[FR Doc. 98-6973 Filed 3-17-98; 8:45 am]
BILLING CODE 7590-01-P