[Federal Register Volume 63, Number 249 (Tuesday, December 29, 1998)]
[Notices]
[Pages 71656-71657]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 98-34438]


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NUCLEAR REGULATORY COMMISSION

[Docket Nos. 50-254 and 50-265]


Commonwealth Edison Company and Midamerican Energy Company (Quad 
Cities Nuclear Power Station, Units 1 and 2); Order Approving 
Application Regarding Proposed Merger of Midamerican Energy Holdings 
Company With Calenergy Company

I

    MidAmerican Energy Company (MEC) owns a 25-percent interest in Quad 
Cities Nuclear Power Station, Units 1 and 2. Commonwealth Edison 
Company (ComEd) owns the remaining 75-percent share of the facilities. 
MEC and ComEd hold Facility Operating Licenses Nos. DPR-29 and DPR-30 
issued by the U. S. Atomic Energy Commission pursuant to Part 50 of 
Title 10 of the Code of Federal Regulations (10 CFR Part 50) on 
December 14, 1972. Under these licenses, only ComEd, acting for itself 
and as agent and representative of MEC has the authority to operate the 
Quad Cities Nuclear Power Station, Units 1 and 2. Quad Cities is 
located in Rock Island County, Illinois.

II

    By application accompanied by cover letters dated September 10, 
1998, from CalEnergy Company, Inc. (CalEnergy) and MEC, through counsel 
Roy P. Lessy, Jr., and from ComEd, MEC and CalEnergy informed the 
Commission of a proposed merger of CalEnergy with MidAmerican Energy 
Holdings Company (MEHC), the parent of MEC, which would effectively 
result in CalEnergy becoming the parent corporation and sole owner of 
MEHC. MEHC would continue to be the parent of MEC. MEC would continue 
to remain a 25-percent minority owner and possession-only licensee of 
the Quad Cities Nuclear Power Station, Units 1 and 2, and would remain 
an ``electric utility'' as defined in 10 CFR 50.2, engaged in the 
generation, transmission, and distribution of electric energy for 
wholesale and retail, according to the application. The application was 
supplemented by letters dated September 16 and November 20, 1998, and 
attachments thereto, from counsel for the applicants. MEC and CalEnergy 
requested the Commission's approval of the indirect license transfers 
to CalEnergy to the extent effected by the proposed corporate merger, 
pursuant to 10 CFR 50.80. Notice of this request for approval was 
published in the Federal Register on October 27, 1998 (63 FR 57324).
    Upon review of the information submitted in the application, 
including the supplemental information provided by the applicants, and 
other information before the Commission, the NRC staff has determined 
that the proposed merger will not affect the qualifications of MEC as a 
holder of the license, 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 December 22, 
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 merger 
of MEHC with CalEnergy, subject to the following: (1) MEC 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 MEC to its parent or to any other 
affiliated company, facilities for the production, transmission, or 
distribution of electric energy having a depreciated book value 
exceeding ten percent (10%) of MEC's consolidated net utility plant, as 
recorded on MEC's books of account, and (2) should the merger of 
CalEnergy and MEHC not be completed by December 31, 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.

[[Page 71657]]

IV

    By January 19, 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 Michael I. Miller, Esquire, Sidley and Austin, One First 
National Plaza, Chicago, Illinois 60603, attorney for ComEd; Roy P. 
Lessy, Jr., Akin, Gump, Straus, Hauer, & Feld, L.L.P., 1333 New 
Hampshire Avenue, N.W., Suite 400, Washington, DC 20036, attorney for 
CalEnergy and MEC; the General Counsel, U.S. Nuclear Regulatory 
Commission, Washington, D.C. 20555; and the Secretary of the 
Commission, U.S. Nuclear Regulatory Commission, Washington, D.C. 20555-
001, 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 consent concerning the proposed corporate merger of CalEnergy and 
MEHC submitted under cover letters dated September 10, 1998, and 
supplemental information submitted under cover letters dated September 
16 and November 20, 1998, and the safety evaluation dated December 22, 
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 
Dixon Public Library, 221 Hennipen Avenue, Dixon, Illinois.

    For the Nuclear Regulatory Commission.

    Dated at Rockville, Maryland this 22nd day of December 1998.
Samuel J. Collins,
Director, Office of Nuclear Reactor Regulation.
[FR Doc. 98-34438 Filed 12-28-98; 8:45 am]
BILLING CODE 7590-01-P