[Federal Register Volume 63, Number 244 (Monday, December 21, 1998)]
[Notices]
[Pages 70439-70440]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 98-33719]


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NUCLEAR REGULATORY COMMISSION

[Docket No. 50-224]


In the Matter of Rochester Gas and Electric Corporation; (R. E. 
Ginna Power Plant); Order Approving Application Regarding Restructuring 
of Rochester Gas and Electric Corporation by Establishment of a Holding 
Company Affecting License No. DPR-18, R.E. Ginna Nuclear Power Plant

I

    Rochester Gas and Electric Corporation (RG&E and licensee) is 
licensed by the U.S. Nuclear Regulatory Commission (NRC or Commission) 
to possess, maintain, and operate the R. E. Ginna Nuclear Power Plant 
(Ginna or the facility), under Facility Operating License No. DPR-18, 
issued by the Commission on December 10, 1984. RG&E fully owns Ginna. 
The facility is located in Wayne County, New York.

II

    RG&E submitted an application dated July 31, 1998, as supplemented 
August 18, 1998, and September 14, 1998, for consent by the Commission, 
pursuant to 10 CFR 50.80, to the extent a proposed corporate 
restructuring action would result in the indirect transfer of the 
operating license for the facility. Under the proposed restructuring, 
RG&E would establish a new holding company and become a subsidiary of 
the new holding company in accordance with a Settlement Agreement 
reached with the New York Public Service Commission (PSC Case Nos. 96-
E-0989), dated October 23, 1997. Unregulated subsidiaries of RG&E would 
also become subsidiaries of the new holding company.
    According to the application, essentially each share of RG&E's 
common stock would be exchanged for one share of common stock of the 
holding company such that the holding company would own the outstanding 
common stock of RG&E. Under this restructuring, RG&E would continue to 
be an ``electric utility'' as defined in 10 CFR 50.2 engaged in the 
transmission, distribution and generation of electricity. RG&E would 
continue to be the direct owner of Ginna and would continue to operate 
Ginna. No direct transfer of the operating license would result from 
the proposed restructuring. The transaction would not involve any 
change in the responsibility for nuclear operations within RG&E. 
Officer responsibilities at the holding company level would be 
primarily administrative and financial in nature and would not involve 
operational matters related to Ginna. No RG&E 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 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 August 18, 1998, and September 14, 1998, the NRC staff has 
determined that the restructuring of RG&E by establishment of a holding 
company will not affect the qualifications of RG&E as the holder of the 
license for Ginna, and that the transfer of control of the license, 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 14, 
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 proposed

[[Page 70440]]

restructuring of RG&E by the establishment of a holding company, 
subject to the following: (1) RG&E shall provide the Director of the 
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 RG&E 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 RG&E's consolidated net utility plant, as recorded on RG&E's 
books of account; and (2) should the restructuring of RG&E as described 
herein, 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, New York 14649; the General Counsel, U.S. Nuclear Regulatory 
Commission, Washington, DC 20555; 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 of 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 filed by RG&E dated July 31, 1998, as supplemented by 
letter dated August 18, 1998, and attachments thereto, and letter dated 
September 14, 1998, with attachments, 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. 98-33719 Filed 12-18-98; 8:45 am]
BILLING CODE 7590-01-P