[Federal Register Volume 65, Number 28 (Thursday, February 10, 2000)]
[Notices]
[Pages 6640-6641]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 00-3093]


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NUCLEAR REGULATORY COMMISSION

[Docket No. 50-423]


Northeast Nuclear Energy Company, et al. (Millstone Nuclear Power 
Station, Unit 3); Order Approving Application Regarding Proposed Merger 
(Acquisition of CMP Group, Inc., by Energy East Corporation)

I

    Northeast Nuclear Energy Company is authorized to act as agent for 
the joint owners of the Millstone Nuclear Power Station, Unit 3 
(Millstone 3), and has exclusive responsibility and control over the 
physical construction, operation, and maintenance of the facility as 
reflected in Facility Operating License No. NPF-49. Central Maine Power 
Company (Central Maine), one of the joint owners, holds a 2.5-percent 
possessory interest in Millstone 3. The U.S. Nuclear Regulatory 
Commission (NRC) issued Facility Operating License No. NPF-49 on 
January 31, 1986, pursuant to Part 50 of Title 10 of the Code of 
Federal Regulations (10 CFR Part 50). The facility is located in New 
London County, on the southern coast of the State of Connecticut.

II

    By letter dated October 6, 1999, through counsel, Central Maine 
informed the NRC of a proposed merger involving the acquisition of 
Central Maine's parent, CMP Group, Inc. (CMP), by Energy East 
Corporation (Energy East). Central Maine requested that the NRC 
determine that the proposed merger and acquisition would not, in fact, 
constitute a transfer of Facility Operating License NPF-49 for 
Millstone 3, to the extent held by Central Maine in regard to Central 
Maine's 2.5-percent ownership interest in Millstone 3. Central Maine 
also requested if the NRC does find that the proposed acquisition of 
CMP would constitute an indirect transfer of Facility Operating License 
NPF-49 to the extent it is held by Central Maine, that the NRC consent 
to the indirect transfer of Central Maine's license to Energy East. The 
NRC determined that an indirect transfer of the license, to the extent 
that it is held by Central Maine, would be involved and that approval 
pursuant to 10 CFR 50.80 would be required. The NRC informed Central 
Maine of this decision in a letter dated November 15, 1999.

III

    Central Maine is an electric utility primarily engaged in the 
transmission, sale, and distribution of electricity in the State of 
Maine and is incorporated in Maine. CMP holds all the common stock of 
Central Maine and also is incorporated in the State of Maine. Energy 
East is an investor-owned holding company incorporated in New York. 
Through its subsidiaries, Energy East is an energy delivery, products, 
and services company with operations in New York and several other 
northeastern States.
    According to Central Maine's October 6, 1999, submittal (the 
``application''), on June 14, 1999, CMP and Energy East signed a 
definitive merger agreement for the acquisition of CMP by Energy East. 
To accomplish the acquisition, EE Merger Corporation, a Maine 
corporation that is a wholly owned subsidiary of Energy East, will 
merge with and into CMP, with CMP being the surviving corporation. Upon 
completion of the merger, CMP will become a wholly owned subsidiary of 
Energy East, with Energy East acquiring all of CMP's common stock. CMP 
will continue its corporate existence under the laws of the State of 
Maine, and CMP will continue to own all of Central Maine's common 
stock. The application notes, however, that in the event that the 
Securities and Exchange Commission does not permit Energy East to 
maintain CMP as an intermediate holding company, Energy East plans to 
hold Central Maine directly.
    Whether Central Maine becomes directly or indirectly held by Energy 
East, Central Maine will continue to hold and to be the licensee for 
its 2.5-percent ownership interest in Millstone 3. In the case of 
either direct or indirect ownership by Energy East, an indirect 
transfer of the license to the extent it is held by Central Maine will 
occur as a result of the merger.
    Approval of the indirect license transfer was requested pursuant to 
10 CFR 50.80. Notice of the application for approval and an opportunity 
for a hearing was published in the Federal Register on November 16, 
1999 (64 FR 62230). No hearing requests or written comments were filed.
    Under 10 CFR 50.80, no license, or any right thereunder, 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 in the application and other information 
before the Commission, the NRC staff has determined that the subject 
merger will not affect the qualifications of Central Maine to hold the 
Millstone 3 license to the extent currently held, and that the indirect 
transfer of the license, to the extent effected by the proposed merger,

[[Page 6641]]

is otherwise consistent with applicable provisions of law, regulations, 
and orders issued by the Commission pursuant thereto, subject to the 
conditions set forth below. The foregoing findings are supported by a 
safety evaluation dated February 4, 2000.

IV

    Accordingly, pursuant to Sections 161b, 161i, 161o, and 184 of the 
AEA, as amended, 42 USC Secs. 2201(b), 2201(i), 2201(o), and 2234; and 
10 CFR 50.80, IT IS HEREBY ORDERED that the license transfer referenced 
above is approved, subject to the following conditions:
    (1) Central Maine 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 Central Maine to its current or proposed direct or indirect 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 Central Maine's consolidated 
net utility plant, as recorded on Central Maine's books of account.
    The foregoing condition shall supersede Condition (1) of the Order 
dated June 2, 1998, which approved the application regarding the 
restructuring of Central Maine by establishment of a holding company.
    (2) Should the proposed merger of CMP and Energy East not be 
completed by January 30, 2001, 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 Order, see the application 
dated October 6, 1999, which is 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 Web site http://www.nrc.gov.

    Dated at Rockville, Maryland, this 4th day of February 2000.
    For the Nuclear Regulatory Commission.
Samuel J. Collins,
Director, Office of Nuclear Reactor Regulation.
[FR Doc. 00-3093 Filed 2-9-00; 8:45 am]
BILLING CODE 7590-01-P