[Federal Register Volume 65, Number 4 (Thursday, January 6, 2000)]
[Notices]
[Pages 791-792]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 00-252]


=======================================================================
-----------------------------------------------------------------------

NUCLEAR REGULATORY COMMISSION

[Docket No. 50-400]


Carolina Power & Light Company; (Shearon Harris Nuclear Power 
Plant, Unit No. 1); Order Approving Application Regarding Proposed 
Corporate Restructuring of Carolina Power & Light Company by 
Establishment of a Holding Company

I

    CP&L and the North Carolina Eastern Municipal Power Agency are the 
holders of Facility Operating License No. NPF-63 for Shearon Harris 
Nuclear Power Plant, Unit No. 1 (Harris), issued January 12, 1987. CP&L 
owns an 83.83% interest in Harris.

II

    Pursuant to Section 184 of the Atomic Energy Act of 1954, as 
amended, and 10 C.F.R. Sec. 50.80, CP&L filed an application dated 
September 15, 1999, which was supplemented by letters dated October 8, 
and November 10, 1999, requesting approval of the indirect transfer of 
Facility Operating License No. NPF-63 for Harris that would result from 
a proposed corporate restructuring of CP&L. Under the proposed 
restructuring, a new holding company, CP&L Holdings, Inc. 
(``Holdings''), will be formed and will become the parent company of 
CP&L. Current holders of CP&L common stock will receive, on a one-for-
one basis, shares of common stock of Holdings such that Holdings will 
then own the common stock of CP&L. CP&L's ownership interests in, and 
its operation of, its nuclear facilities will not change. No direct 
transfer of the license will occur, as CP&L will continue to hold the 
license. No physical changes to the facility, or operational changes 
are being proposed in the application. According to the application, as 
a result of the new corporate structure, Holdings will be able to 
respond more effectively to increased competition in the energy 
industry. Notice of the application and

[[Page 792]]

an opportunity for a hearing was published in the Federal Register on 
November 2, 1999 (64 FR 59220). No hearing requests were filed.
    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 
submitted by CP&L in its application, as supplemented, and other 
information before the Commission, the NRC staff has determined that 
the proposed restructuring of CP&L will not affect the qualifications 
of CP&L as holder of the license referenced above, and that the 
indirect transfer of the license, 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 29, 1999.

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 Sec. CFR 50.80, IT IS Hereby Ordered that the 
application regarding the subject indirect transfer is approved, 
subject to the following conditions:
    (1) CP&L 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 CP&L 
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 ten percent (10%) of CP&L's 
consolidated net utility plant, as recorded on CP&L books of account, 
and
    (2) should the restructuring of CP&L not be completed by December 
30, 2000, 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.
    For further details with respect to this action, see the initial 
application dated September 15, 1999, and supplements dated October 8, 
and November 10, 1999, and the Safety Evaluation dated December 29, 
1999, which are available for public inspection at the Commission's 
Public Document Room, the Gelman Building, 2120 L Street, NW., 
Washington, DC, and accessible electronically through the ADAMS Public 
Electronic Reading Room link at the NRC Website (http://www.nrc.gov).

    Dated at Rockville, Maryland, this 29th day of December 1999.

    For the Nuclear Regulatory Commission.
Samuel J. Collins,
Director, Office of Nuclear Reactor Regulation.
[FR Doc. 00-252 Filed 1-5-00; 8:45 am]
BILLING CODE 7590-01-P