[Federal Register Volume 63, Number 244 (Monday, December 21, 1998)]
[Notices]
[Pages 70438-70439]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 98-33718]


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NUCLEAR REGULATORY COMMISSION

[Docket No. 50-410]


In the Matter of Rochester Gas and Electric Corporation; (Nine 
Mile Point Nuclear Station Unit No. 2); Order Approving Application 
Regarding Restructuring of Rochester Gas and Electric Corporation by 
Establishment of a Holding Company Affecting License No. NPF-69, Nine 
Mile Point Nuclear Station, Unit No. 2

I

    Rochester Gas and Electric Corporation (Applicant) is licensed by 
the U.S. Nuclear Regulatory Commission (NRC or Commission) to own and 
possess a 14-percent interest in Nine Mile Point Nuclear Station, Unit 
2 (NMP2), under Facility Operating License No. NPF-69, issued by the 
Commission on July 2, 1987. In addition to Applicant, the other owners 
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, and Central Hudson Gas and 
Electric Corporation with a 9-percent interest. Niagara Mohawk Power 
Corporation (NMPC) owns a 41-percent interest in NMP2, is authorized to 
act as agent for the other owners, and has exclusive responsibility and 
control over the operation and maintenance of NMP2. NMP2 is located in 
the town of Scriba, Oswego County, New York.

II

    Under cover of a letter dated July 31, 1998, Applicant submitted an 
application, which was supplemented August 18, 1998, and September 14, 
1998, 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 license for NMP2 to the 
extent it is held by Applicant. As a result of the proposed 
restructuring, Applicant would establish a new holding company and 
become a subsidiary of the new holding company, not yet named, to be 
created in accordance with an ``Amended and Restated Settlement 
Agreement'' with the Public Service Commission of the State of New 
York, dated January October 23, 1997 (Case 96-E-0989).
    According to the application, essentially all of the outstanding 
shares of Applicant's common stock would be exchanged on a share-for-
share basis for common stock of the proposed new holding company, such 
that the holding company would own the outstanding common stock of 
Applicant. Under the proposed restructuring, Applicant would continue 
to be an ``electric utility'' as defined in 10 CFR 50.2, providing the 
same utility services as it did before the restructuring. In addition, 
certain non-utility unregulated subsidiaries of Applicant would become 
subsidiaries of the new holding company. Applicant would retain its 
ownership interest in NMP2 and would continue to be a licensee. No 
direct transfer of the operating license or interests in the station 
would result from the proposed restructuring. The transaction would not 
involve any change to either the management organization or technical 
personnel of NMPC, which has exclusive responsibility under the 
operating license for operating and maintaining NMP2 and which is not 
involved in the proposed restructuring of Applicant.
    Notice of the application for approval was published in the Federal 
Register on October 26, 1998 (63 FR 57141), and an Environmental 
Assessment and Finding of No Significant Impact was published in the 
Federal Register on October 26, 1998 (63 FR 57143).
    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 31, 1998, as 
supplemented by letters dated August 18, and September 14, 1998, and 
attachments thereto, the NRC staff has determined that the proposed 
restructuring of Applicant by establishment of a holding company will 
not affect the qualifications of Applicant as a holder of the license, 
and that the transfer of control of the license for NMP2, to the extent 
effected by the 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 14, 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 that the 
Commission approves the application regarding the proposed 
restructuring of Applicant by the establishment of a holding company, 
subject to the following: (1) Applicant shall provide the Director, 
Office of Nuclear Reactor Regulation, a copy of any application, at the 
time it is filed,

[[Page 70439]]

to transfer (excluding grants of security interests or liens) from 
Applicant 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 Applicant's consolidated net utility plant, as recorded on 
Applicant's books of account, and (2) should the restructuring of 
Applicant not be completed by December 14, 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 Dr. Robert C. Mecredy, Vice President, 
Nuclear Operations, Rochester Gas and Electric Corporation, 89 East 
Avenue, Rochester, NY 14649; 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 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 dated July 31, 1998, as supplemented by letters dated 
August 18, 1998, and September 14, 1998, and attachments thereto, and 
the Safety Evaluation dated December 14, 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 
and the Rochester Public Library, 115 South Avenue, Rochester, New York 
14610.

    Dated at Rockville, Maryland, this 14th day of December 1998.

    For the Nuclear Regulatory Commission.
Samuel J. Collins,
Director, Office of Nuclear Reactor Regulation.
[FR Doc. 98-33718 Filed 12-18-98; 8:45 am]
BILLING CODE 7590-01-P