[Federal Register Volume 65, Number 41 (Wednesday, March 1, 2000)]
[Notices]
[Pages 11091-11092]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 00-4883]


-----------------------------------------------------------------------

NUCLEAR REGULATORY COMMISSION

[Docket No. 50-423]


Northeast Nuclear Energy Company, et al. (Millstone Nuclear Power 
Station, Unit 3); Order Approving Transfer of License and Conforming 
Amendment

I

    Northeast Nuclear Energy Company (NNECO) 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. Montaup Electric 
Company (Montaup), one of the joint owners, currently owns a 4.0-
percent interest in Millstone 3; New England Power Company (NEP), 
another of the joint owners, currently owns a 12.2 percent interest. 
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

    Under cover of a letter dated June 15, 1999, Montaup and NEP 
submitted an application requesting approval of the direct and indirect 
transfers of the license to the extent held by Montaup in connection 
with its 4.0-percent ownership interest in Millstone 3, regarding a 
proposed acquisition of that interest by NEP. The June 15, 1999, 
application, which incorporated by reference a related application 
dated March 15, 1999, filed by NEP (NEP--National Grid submittal), was 
supplemented July 20, September 3, and November 29, 1999, and January 
18, 2000 (collectively hereinafter ``the application''). In addition, 
the application requested approval of a conforming amendment to reflect 
the direct transfer.
    According to the application, on February 1, 1999, New England 
Electric System (NEES), the parent company of NEP, entered into an 
Agreement and Plan of Merger and Consent Agreement (Merger Agreement) 
with Eastern Utilities Associates (EUA), a Massachusetts business 
trust, which is the indirect parent of Montaup. Under the Merger 
Agreement, certain transactions will occur that will ultimately result 
in the indirect transfer of Montaup's interest in Millstone 3 to NEES 
and the direct transfer of that interest to NEP. NEP would then own a 
16.2-percent interest in Millstone 3.
    In addition, by virtue of a separate merger agreement between NEES 
and the National Grid Group, plc (National Grid), an indirect transfer 
of Montaup's Millstone 3 license to National Grid would occur by virtue 
of National Grid acquiring NEES and, indirectly, NEP. NNECO, the sole 
licensed operator of the facility, would remain the managing agent for 
the joint owners of the facility and continue to have exclusive 
responsibility for the management, operation, and maintenance of 
Millstone 3. The application did not propose a change in the rights, 
obligations, or interests of the other joint owners of Millstone 3. In 
addition, no physical changes to Millstone 3 or operational changes 
were proposed.
    The proposed conforming amendment, submitted by NNECO on behalf of 
NEP to address the proposed direct transfer of the license from Montaup 
to NEP with regard to NEP's acquisition of Montaup's 4.0-percent 
interest in Millstone 3, would remove references to Montaup in the 
license and change the number of license holders as stated in the 
license from 14 to 13. NEP is currently referenced in the license as a 
licensee, given its existing 12.2-percent ownership interest in 
Millstone 3, and therefore would not need to be added to the license.
    Approval of the above described license transfers and conforming 
license amendment 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 January 19, 2000 (65 FR 2990). 
No hearing requests 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

[[Page 11092]]

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 (1) the merger between EUA and NEES will not affect 
the qualifications of Montaup as a holder of Facility Operating License 
NPF-49, (2) NEP is qualified to hold the license following the 
acquisition of Montaup's ownership interest in Millstone 3 by NEP, and 
(3) the acquisition of NEES by National Grid will not affect the 
qualifications of NEP to hold the license as proposed in the 
application; and that the direct and indirect transfers of the license, 
to the extent effected by the described mergers and acquisitions, are 
otherwise consistent with applicable provisions of law, regulations, 
and orders issued by the Commission, subject to the conditions set 
forth herein.
    The NRC staff has further found that the application for the 
proposed license amendment 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 1; 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 amendment 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 amendment 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 amendment 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 24, 2000.

III

    Accordingly, pursuant to Sections 161B, 161i, 161o, and 184 of the 
Atomic Energy Act of 1954 (AEA), as amended, 42 U.S.C. Sec. 2201(b), 
2201(i), 2201(o), and 2234; and 10 CFR 50.80, IT IS HEREBY ORDERED that 
the direct and indirect license transfers referenced above are 
approved, subject to the following conditions:
    (1) No later than the time the proposed NEES merger with National 
Grid is consummated, NEP shall establish and make operational a Special 
Nuclear Committee, as described in the NEP-National Grid submittal, 
having the composition, authority, responsibilities, and obligations 
specified in the NEP-National Grid submittal, provided, however, the 
Special Nuclear Committee may also have exclusive authority on behalf 
of NEP over taking any action which is ordered by the NRC or any other 
agency or court of competent jurisdiction. No material changes with 
respect to the Special Nuclear Committee may be made without the prior 
written consent of the Director, Office of Nuclear Reactor Regulation. 
The foregoing provisions may be modified by the Commission upon 
application and for good cause shown.
    (2) The Special Nuclear Committee, once established in accordance 
with Condition (1) above, shall have the responsibility and exclusive 
authority to ensure, and shall ensure, that the business and activities 
of NEP with respect to the Millstone 3 license are at all times 
conducted in a manner consistent with the protection of the public 
health and safety and common defense and security of the United States.
    (3) NEP shall provide the Director, 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 NEP 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 ten percent (10%) of NEP's consolidated net utility plant, as 
recorded on NEP's book of accounts.
    (4) Should any of the proposed license transfers approved by this 
Order not be completed by February 28, 2001, this Order shall become 
null and void with respect to such transfer, provided, however, upon 
application and for good cause shown, such date may be extended.
    It is Further Ordered that, consistent with 10 CFR 2.1315(b), a 
license amendment that makes the changes, as indicated in Enclosure 2 
to the cover letter forwarding this Order, to conform the license to 
reflect the subject direct license transfer from Montaup to NEP is 
approved. Such amendment shall be issued and made effective at the time 
the proposed direct license transfer from Montaup to NEP is completed.
    This Order is effective upon issuance.
    For further details with respect to this Order, see the initial 
application dated June 15, 1999, and supplements dated July 20, 
September 3, and November 29, 1999, and January 18, 2000, the NEP-
National Grid submittal dated March 15, 1999, and the safety evaluation 
dated February 24, 2000, 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 Web site http://www.nrc.gov.

    Dated at Rockville, Maryland, this 24th day of February 2000.

    For the Nuclear Regulatory Commission.
Samuel J. Collins,
Director, Office of Nuclear Reactor Regulation.
[FR Doc. 00-4883 Filed 2-29-00; 8:45 am]
BILLING CODE 7590-01-M