[Federal Register Volume 63, Number 220 (Monday, November 16, 1998)]
[Notices]
[Pages 63753-63754]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 98-30558]


-----------------------------------------------------------------------

NUCLEAR REGULATORY COMMISSION

[Docket Nos. 50-498 and 50-499]


Houston Lighting & Power Company, et al. (South Texas Project, 
Units 1 and 2); Order Approving Application Regarding Proposed 
Corporate Merger of Central and South West Corporation and American 
Electric Power Company, Inc.

I

    Houston Lighting & Power Company; City Public Service Board of San 
Antonio; Central Power and Light Company (CPL); City of Austin, Texas; 
and STP Nuclear Operating Company are holders of Facility Operating 
Licenses Nos. NPF-76 and NPF-80, issued on March 22, 1988, and March 
28, 1989, respectively. Facility Operating Licenses Nos. NPF-76 and 
NPF-80 authorize the holders to possess the South Texas Project, Units 
1 and 2 (STP), and authorize STP Nuclear Operating Company to use and 
operate STP in accordance with the procedures and limitations set forth 
in the operating licenses. The Nuclear Regulatory Commission (NRC) 
issued Licenses Nos. NPF-76 and NPF-80 on March 22, 1988, and March 28, 
1989, respectively, pursuant to Part 50 of Title 10 of the Code of 
Federal Regulations (10 CFR Part 50). The facility is located in 
Matagorda County, Texas.

II

    Under cover of a letter dated June 19, 1998, CPL submitted an 
application dated June 16, 1998, for consent under 10 CFR 50.80 to 
allow the indirect transfer of CPL's interest in STP that would occur 
in connection with a proposed merger of Central and South West 
Corporation (CSW, the parent holding company of CPL) and American 
Electric Power, Inc. (AEP). Under the proposed merger, CSW would become 
a wholly-owned subsidiary of AEP, with CPL remaining a wholly-owned 
subsidiary of CSW. Houston Lighting & Power Company; City Public 
Service Board of San Antonio; City of Austin, Texas; and STP Nuclear 
Operating Company are not involved in the merger. The application was 
supplemented by a letter dated June 23, 1998, and enclosures thereto.
    CPL and the other current licensees would continue to hold the 
licenses, and no direct transfer of the licenses would result from the 
merger. On August 5, 1998, a Notice of Consideration of Approval of 
Application Regarding Proposed Merger was published in the Federal 
Register

[[Page 63754]]

(63 FR 41876). An Environmental Assessment and Finding of No 
Significant Impact was published in the Federal Register on September 
28, 1998 (63 FR 51629).
    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 
contained in the application dated June 16, 1998, and enclosures to the 
letter dated June 23, 1998, the NRC staff has determined that the 
proposed merger will not affect the qualifications of CPL as holder of 
Facility Operating Licenses Nos. NPF-76 and NPF-80, 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 November 5, 1998.

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 merger agreement 
between CSW and AEP subject to the following: (1) CPL 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 CPL to its proposed parents, 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 CPL's consolidated net utility 
plant, as recorded on its books of account, and (2) should the merger 
not be completed by December 31, 1999, 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 December 14, 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 20555-0001, 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, 
Jr., Shaw, Pittman, Potts & Trowbridge, 2300 N Street, NW., Washington, 
DC 20037-1128, counsel for CPL.
    For further details with respect to this action, see the 
application from CPL dated June 16, 1998, submitted under cover of a 
letter dated June 19, 1998, from Shaw, Pittman, Potts, and Trowbridge, 
counsel for CPL, supplemental letter dated June 23, 1998, and 
enclosures thereto, and the safety evaluation dated November 5, 1998, 
which are available for public inspection at the Commission's Public 
Document Room, the Gelman Building, 2120 L Street, NW., Washington, DC 
20555-0001, and at the local public document room located at the 
Wharton County Junior College, J.M. Hodges Learning Center, 911 Boling 
Highway, Wharton, TX 77488.

    Dated at Rockville, Maryland, this 5th day of November 1998.

    For the Nuclear Regulatory Commission.
Samuel J. Collins,
Director, Office of Nuclear Reactor Regulation.
[FR Doc. 98-30558 Filed 11-13-98; 8:45 am]
BILLING CODE 7590-01-P