[Federal Register Volume 63, Number 105 (Tuesday, June 2, 1998)]
[Notices]
[Page 30025]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 98-14517]


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NUCLEAR REGULATORY COMMISSION

[Docket No. 50-410]


Central Hudson Gas & Electric Corporation; Nine Mile Point 
Nuclear Station, Unit No. 2

    Notice is hereby given that the U.S. Nuclear Regulatory Commission 
(the Commission) is considering the issuance of an Order approving, 
under 10 CFR 50.80, an application regarding a transfer of control of 
possessory rights held by Central Hudson Gas & Electric Corporation 
(Applicant) under the operating license for Nine Mile Point Nuclear 
Station, Unit No. 2 (NMP2). The transfer would be to a holding company, 
not yet named, to be created over Applicant in accordance with a New 
York State Public Service Commission order, issued and effective 
February 19, 1998 (Case 96-E-0909), and related documents entitled 
``Amended and Restated Settlement Agreement'' dated January 2, 1998, 
and ``Modifications to Amended and Restated Settlement Agreement'' 
dated February 26, 1998 (see Exhibits G-G2 in the application). 
Applicant is licensed by the Commission to own and possess a 9 percent 
interest in NMP2.
    By application dated April 8, 1998, Applicant informed the 
Commission of a proposed corporate restructuring under which Applicant 
would become a subsidiary of a newly formed holding company. The 
outstanding shares of Applicant's common stock will be exchanged on a 
share-for-share basis for common stock of the holding company, such 
that the holding company will own all of the outstanding common stock 
of Applicant. The holding company will own, directly or indirectly, the 
stock of any non-utility subsidiaries except that Applicant will 
continue to own one unregulated subsidiary. Under this restructuring, 
Applicant will sell at auction its fossil-fueled electric generation 
facilities at its Danskammer Steam Generating Plant and its partial 
interest in the Roseton Electric Generation Plant (hereafter, 
collectively referred to as ``Generation Assets''). However, Applicant 
will continue to be an ``electric utility'' as defined in 10 CFR 50.2 
engaged in the transmission, distribution and, in the case of NMP2, 
combustion turbine facilities, hydroelectric facilities, and (until 
structurally separated or divested), the Generation Assets, the 
generation of electricity. Applicant would retain its ownership 
interest in NMP2 and continue to be a licensee of NMP2. No direct 
transfer of the operating license or ownership interests in the station 
will result from the proposed restructuring. The transaction would not 
involve any change to either the management organization or technical 
personnel of Niagara Mohawk Power Corporation, which is responsible for 
operating and maintaining NMP2.
    Pursuant to 10 CFR 50.80, the Commission may approve the transfer 
of control of a license after notice to interested persons. Such 
approval is contingent upon the Commission's determination that the 
holder of the license following the transfer is qualified to hold the 
license and that the transfer is otherwise consistent with applicable 
provisions of law, regulations, and orders of the Commission.
    For further details with respect to this proposed action, see the 
Applicant's application dated April 8, 1998, as supplemented April 22, 
1998. These documents are available for public inspection at the 
Commission's Public Document Room, the Gelman Building, 2120 L Street, 
N.W., Washington, DC, and at the local public document room located at 
the Penfield Library, State University of New York, Oswego, New York 
13126.

    Dated at Rockville, Maryland this 26th day of May 1998.

    For the Nuclear Regulatory Commission.
Darl S. Hood,
Senior Project Manager, Project Directorate I-1, Division of Reactor 
Projects--I/II, Office of Nuclear Reactor Regulation.
[FR Doc. 98-14517 Filed 6-1-98; 8:45 am]
BILLING CODE 7590-01-P