[Federal Register Volume 63, Number 243 (Friday, December 18, 1998)]
[Notices]
[Pages 70166-70167]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 98-33587]



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NUCLEAR REGULATORY COMMISSION

[Docket Nos. 50-220 and 50-410]


Niagara Mohawk Power Corporation (Nine Mile Point Nuclear Station 
Unit Nos. 1 and 2); Order Approving Application Regarding Restructuring 
of Niagara Mohawk Power Corporation by Establishment of a Holding 
Company Affecting Licenses Nos. DPR-63 and NPF-69, Nine Mile Point 
Nuclear Station, Unit Nos. 1 and 2

I

    Niagara Mohawk Power Corporation (NMPC or the licensee) is licensed 
by the U.S. Nuclear Regulatory Commission (NRC or Commission) to 
possess, maintain, and operate the Nine Mile Point Nuclear Station, 
Units 1 and 2 (NMP1 and NMP2, or collectively, the facility), under 
Facility Operating License No. DPR-63, issued by the Commission on 
December 26, 1974, and Facility Operating License No. NPF-69, issued by 
the Commission on July 2, 1987. NMPC fully owns NMP1, is a 41-percent 
co-owner of NMP2, and acts as agent for the other co-owners of NMP2. 
The other co-owners of NMP2, who may possess but not operate NMP2, are 
New York State Electric & Gas Corporation with an 18-percent interest, 
Long Island Lighting Company 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. The facility is 
located in the town of Scriba, Oswego County, New York.

II

    Under cover of a letter dated July 21, 1998, NMPC submitted an 
application for consent by the Commission, pursuant to 10 CFR 50.80, 
regarding a proposed corporate restructuring action that would result 
in the indirect transfer of the operating licenses for the facility to 
the extent held by NMPC. The application was supplemented October 23, 
1998. Under the proposed restructuring, NMPC would become a subsidiary 
of a new holding company, Niagara Mohawk Holdings, Inc., created by 
NMPC in accordance with a Settlement Agreement reached with the New 
York Public Service Commission (PSC Case Nos. 94-E-0098 and 94-E-0099), 
dated October 10, 1997, and revised March 19, 1998. In addition, 
certain of NMPC's non-utility subsidiaries would be transferred to the 
holding company.
    According to the application, each share of NMPC's common stock 
would be exchanged for one share of common stock of the holding 
company. NMPC's outstanding preferred stock would not be exchanged. 
Under this restructuring, NMPC would divest all of its hydro and fossil 
generation assets by auction, but would retain its nuclear assets, and 
would continue to be an ``electric utility'' as defined in 10 CFR 50.2 
engaged in the transmission, distribution and, through NMP1 and NMP2, 
the generation of electricity. NMPC would continue to be the owner of 
NMP1 and a co-owner of NMP2 and would continue to operate both NMP1 and 
NMP2. No direct transfer of the operating licenses or ownership 
interests in the facility would result from the proposed restructuring. 
The transaction would not involve any change in the responsibility for 
nuclear operations within NMPC. Officer responsibilities at the holding 
company level would be primarily administrative and financial in nature 
and would not involve operational matters related to NMP1 or NMP2. No 
NMPC nuclear management positions would be changed as a result of the 
corporate restructuring.
    A Notice of Consideration of Approval of Application Regarding 
Proposed Corporate Restructuring was published in the Federal Register 
on September 9, 1998 (63 FR 48254), and an Environmental Assessment and 
Finding of No Significant Impact was published in the Federal Register 
on September 23, 1998 (63 FR 50931).
    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 July 21, 1998, as 
supplemented by letter dated October 23, 1998, the NRC staff has 
determined that the restructuring of NMPC by establishment of a holding 
company structure will not affect the qualifications of NMPC as the 
holder of the license for NMP1, and as a holder of the license for 
NMP2, and that the transfer of control of the licenses, to the extent 
effected by the proposed 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 11, 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 proposed 
restructuring of NMPC by the establishment of a holding company 
structure, subject to the following: (1) NMPC shall provide the 
Director, 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 NMPC to its proposed 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 (10%) of NMPC's consolidated net 
utility plant as recorded on NMPC's books of account; and (2) should 
the restructuring of NMPC as described herein, not be completed by 
December 10, 1999, this Order shall become null and void, provided, 
however, on application and for good cause shown, such date may be 
extended.
    This Order is effective upon issuance.

IV

    By January 11, 1999, any person whose interest may be affected by 
this Order may file in accordance with the Commission's rules of 
practice set forth in Subpart M of 10 CFR Part 2 a request for a 
hearing and petition for leave to intervene with respect to issuance of 
the Order. Such requests and petitions must comply with the 
requirements set forth in 10 CFR 2.1306, and should address the 
considerations contained in 10 CFR 2.1308(a). Untimely requests and 
petitions may be denied, as provided in 10 CFR 2.1308(b), unless good 
cause for failure to file on time is established. In addition, an 
untimely request or petition should address the factors that the 
Commission will also consider, in reviewing untimely requests or 
petitions, set forth in 10 CFR 2.1308(b)(1)-(2).
    Requests for a hearing and petitions for leave to intervene should 
be served upon Mr. John H. Mueller, Chief Nuclear Officer, Niagara 
Mohawk Power Corporation, Nine Mile Point Nuclear Station, Operations 
Building, Second Floor, P.O. Box 63, Lycoming, New York 13093; the 
General Counsel, U.S. Nuclear Regulatory Commission, Washington, DC 
20555; and the Secretary of the Commission, U.S. Nuclear Regulatory 
Commission, Washington, DC 20555-0001, Attention: Rulemakings and 
Adjudications Staff, in accordance with 10 CFR 2.1313.
    The Commission will issue a notice or order granting or denying a 
hearing request or intervention petition, designating the issues for 
any hearing that will be held and designating the Presiding Officer. A 
notice granting a

[[Page 70167]]

hearing will be published in the Federal Register and served on the 
parties to the hearing.
    For further details with respect to this Order, see the application 
for approval filed by NMPC under cover of a letter dated July 21, 1998, 
from John H. Mueller of NMPC, as supplemented by letter dated October 
23, 1998, and the safety evaluation dated December 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 Reference and Documents 
Department, Penfield Library, State University of New York, Oswego, New 
York 13126.

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

    For the Nuclear Regulatory Commission.
Samuel J. Collins,
Director, Office of Nuclear Reactor Regulation.
[FR Doc. 98-33587 Filed 12-17-98; 8:45 am]
BILLING CODE 7590-01-P