[Federal Register Volume 65, Number 36 (Wednesday, February 23, 2000)]
[Notices]
[Pages 8997-8999]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 00-4255]


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NUCLEAR REGULATORY COMMISSION

[Docket Nos. 50-272 and 50-311]


Public Service Electric and Gas Company; Philadelphia Electric 
Company (PECO Energy Company); Delmarva Power and Light Company, 
Atlantic City Electric Company, (Salem Nuclear Generating Station, 
Units 1 and 2); Order Approving Transfer of Licenses and Conforming 
Amendments

I.

    Public Service Electric and Gas Company (PSE&G), Philadelphia 
Electric Company (PECO Energy Company), Delmarva Power and Light 
Company, and Atlantic City Electric Company are the joint owners of the 
Salem Nuclear Generating Station, Units 1 and 2 (Salem), located in 
Salem County, New Jersey. They hold Facility Operating Licenses Nos. 
DPR-70 and DPR-75 issued by the U.S. Nuclear Regulatory Commission (NRC 
or Commission) on August 13, 1976, and May 20, 1981, respectively, 
pursuant to Part 50 of Title 10 of the Code of Federal Regulations (10 
CFR Part 50). Under these licenses, PSE&G (currently owner of 42.59 
percent of each Salem unit) is authorized to possess, use, and operate 
Salem Units 1 and 2.

II.

    By application dated June 4, 1999, as supplemented October 22, 1999 
(collectively referred to as the application herein), PSE&G requested 
approval of the proposed transfer of PSE&G's rights under the operating 
licenses for both Salem units to a new, affiliated nuclear generating 
company, PSEG Nuclear Limited Liability Company (PSEG Nuclear). PSEG 
Nuclear would assume title to PSE&G's interest in both units following 
approval of the proposed license transfers and would become exclusively 
responsible for the operation and maintenance of and the performance of 
eventual decommissioning activities for Salem Units 1 and 2. No 
physical changes or significant change in the day-to-day management and 
operations of the Salem units are proposed in the application. The 
proposed transfers do not involve any change with respect to the non-
operating ownership interest in Salem Units 1 and 2 held by PECO Energy 
Company, Delmarva Power and Light Company, and Atlantic City Electric 
Company.
    PSE&G also requested approval of conforming license amendments to 
reflect the transfers. The amendments would replace references to 
Public Service Electric and Gas Company, or PSE&G, with PSEG Nuclear.
    Approval of the transfers and conforming license amendments was 
requested pursuant to 10 CFR 50.80 and 50.90. Notice of the application 
for approval and an opportunity for a hearing was published in the 
Federal Register on June 30, 1999 (64 FR 35192). No hearing requests 
were filed.
    Pursuant to 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 submitted in the application 
and other information

[[Page 8998]]

before the Commission, the NRC staff has determined that PSEG Nuclear 
is qualified to hold the license for each Salem unit to the same extent 
the licenses are now held by PSE&G, and that the transfer of the 
licenses, as previously described herein, is otherwise consistent with 
applicable provisions of law, regulations, and orders issued by the 
Commission, subject to the conditions described herein. The NRC staff 
has further found that the application for the proposed license 
amendments complies with the standards and requirements of the Atomic 
Energy Act of 1954, as amended (the Act), and the Commission's rules 
and regulations set forth in 10 CFR Chapter I; the facility will 
operate in conformity with the application, the provisions of the Act, 
and the rules and regulations of the Commission; there is reasonable 
assurance that the activities authorized by the proposed license 
amendments can be conducted without endangering the health and safety 
of the public and that such activities will be conducted in compliance 
with the Commission's regulations; the issuance of the proposed license 
amendments will not be inimical to the common defense and security or 
to the health and safety of the public; and the issuance of the 
proposed license amendments will be in accordance with 10 CFR Part 51 
of the Commission's regulations, and all applicable requirements have 
been satisfied. The foregoing findings are supported by a Safety 
Evaluation dated February 16, 2000.

III.

    Accordingly, pursuant to Sections 161b, 161i, and 184 of the Atomic 
Energy Act of 1954, as amended, 42 U.S.C. Secs. 2201(b), 2201(i), and 
2234; and 10 CFR 50.80, IT IS HEREBY ORDERED that the license transfers 
referenced above are approved, subject to the following conditions:
    1. For purposes of ensuring public health and safety, PSEG Nuclear 
shall provide decommissioning funding assurance, to be held in 
decommissioning trust(s) for Salem Units 1 and 2 upon the transfer of 
the respective licenses to PSEG Nuclear, of no less than the following 
amounts: Salem Unit 1: $113.5 million, Salem Unit 2: $88.8 million. Any 
amounts held in any decommissioning trust(s) maintained by PSE&G for 
Salem Units 1 and 2 after such license transfers subject to the 
limitations in Paragraph 2 below, may be credited towards the amounts 
required under this paragraph.
    2. Any decommissioning trust funds established by PSE&G for Salem 
Units 1 and 2 to comply with NRC regulations shall be transferred to 
PSEG Nuclear upon the transfer of the respective licenses, or following 
the transfer of the licenses but no later than one year from the date 
of issuance of this Order. In the event the decommissioning trust funds 
are not transferred by PSE&G to PSEG Nuclear at the time the license 
transfers are effected, PSE&G shall remain subject to the NRC's 
authority under Section 161 of the Atomic Energy Act to issue orders to 
protect health and to minimize danger to life or property regarding any 
and all matters concerning such decommissioning trust funds, until such 
time as the decommissioning trust funds are transferred to PSEG 
Nuclear.
    3. PSEG Nuclear shall take all necessary steps to ensure that the 
decommissioning trust(s) are maintained in accordance with the 
application for the transfer of the Salem Units 1 and 2 licenses and 
the requirements of this Order and the related safety evaluation.
    4. If the assets of any decommissioning trust maintained by PSE&G 
for Salem Units 1 and 2 are retained in such trust following the 
transfer of the respective license to PSEG Nuclear instead of being 
transferred to any trust established by PSEG Nuclear, PSE&G shall 
maintain the assets as retained in such trust in accordance with the 
application for the transfer of the licenses.
    5. The decommissioning trust agreement for Salem Units 1 and 2 
shall provide that:
    (a) The use of assets in both the qualified and non-qualified funds 
shall be limited to expenses related to decommissioning of each unit as 
defined by the NRC in its regulations and issuances, and as provided in 
the unit's license and any amendments thereto. However, upon completion 
of decommissioning, as defined above, the assets may be used for any 
purpose authorized by law.
    (b) Investments in the securities or other obligations of PSE&G or 
affiliates thereof, or their successors or assigns, shall be 
prohibited. In addition, except for investments tied to market indexes 
or other non-nuclear sector mutual funds, investments in any entity 
owning one or more nuclear power plants shall be prohibited.
    (c) No disbursements or payments from the trust shall be made by 
the trustee until the trustee has first given the NRC 30 days notice of 
the payment. In addition, no disbursements or payments from the trust 
shall be made if the trustee receives prior written notice of objection 
from the Director, Office of Nuclear Reactor Regulation.
    (d) The trust agreement shall not be modified in any material 
respect without prior written notification to the Director, Office of 
Nuclear Reactor Regulation.
    (e) The trustee, investment advisor, or anyone else directing the 
investments made in the trust shall adhere to a ``prudent investor'' 
standard, as specified in 18 CFR 35.32(3) of the Federal Energy 
Regulatory Commission's regulations.
    6. PSEG Nuclear shall not take any action that would cause PSEG 
Power LLC or its parent companies to void, cancel, or diminish the 
commitment to fund an extended plant shutdown as represented in the 
application for approval of the transfer of the Salem Units 1 and 2 
licenses from PSEG to PSEG Nuclear.
    7. Before the completion of the transfer of the interest in Salem 
Units 1 and 2 to PSEG Nuclear as previously described herein, PSEG 
Nuclear shall provide to the Director, Office of Nuclear Reactor 
Regulation, satisfactory documentary evidence that PSEG Nuclear has 
obtained the appropriate amount of insurance required of licensees 
under 10 CFR Part 140 of the Commission's regulations.
    8. After receipt of all required regulatory approvals of the 
subject transfer, PSEG shall inform the Director, Office of Nuclear 
Reactor Regulation, in writing of such receipt, and of the date of 
closing of the transfer no later than seven business days prior to the 
date of closing. Should the transfer not be completed by December 31, 
2000, this Order shall become null and void, provided, however, on 
application and for good cause shown, such date may be extended.
    It is further ordered that, consistent with 10 CFR 2.1315(b), 
license amendments that make changes, as indicated in Enclosure 2 to 
the cover letter forwarding this Order, to conform each Salem license 
to reflect the subject license transfers are approved. Such amendments 
shall be issued and made effective at the time the proposed license 
transfers are completed.
    This Order is effective upon issuance.
    For further details with respect to this Order, see the initial 
application dated June 4, 1999, and the supplement dated October 22, 
1999, which are available for public inspection at the Commission's 
Public Document Room, the Gelman Building, 2120 L Street, NW., 
Washington, DC. Publicly available documents will be accessible 
electronically from the ADAMS Public Library component on the NRC Web 
site http://www.nrc.gov (the Electronic Reading Room).


[[Page 8999]]


    Dated: Dated at Rockville, Maryland, this 16th day of February 
2000.

    For the Nuclear Regulatory Commission.
Samuel J. Collins,
Director, Office of Nuclear Reactor Regulation.
[FR Doc. 00-4255 Filed 2-22-00; 8:45 am]
BILLING CODE 7590-01-P