[Federal Register Volume 65, Number 82 (Thursday, April 27, 2000)]
[Notices]
[Pages 24720-24721]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 00-10503]


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NUCLEAR REGULATORY COMMISSION

[Docket No. 50-354]


Public Service Electric and Gas Company, Atlantic City Electric 
Company, (Hope Creek Generating Station); Order Approving Transfer of 
License and Conforming Amendment

I

    Public Service Electric and Gas Company (PSE&G) and the Atlantic 
City Electric Company (ACE) are the joint owners of the Hope Creek 
Generating Station (HCGS), located in Salem County, New Jersey. They 
hold Facility Operating License No. NPF-57, issued by the U.S. Nuclear 
Regulatory Commission (NRC or Commission) on July 25, 1986, pursuant to 
Part 50 of title 10 of the Code of Federal Regulations (10 CFR Part 
50). Under this license, PSE&G (currently owner of 95 percent of HCGS) 
is authorized to act as agent for ACE (owner of the remaining 5 
percent) and has exclusive responsibility and control over the physical 
construction, operation, and maintenance of the facility.

II

    By application dated December 20, 1999, as supplemented February 11 
and February 25, 2000 (collectively referred to herein as the 
application), PSE&G, ACE, and PSEG Nuclear Limited Liability Company 
(PSEG Nuclear), requested approval by the NRC of the transfer to PSEG 
Nuclear of the HCGS license, to the extent it is held by ACE, in 
conjunction with the proposed acquisition of ACE's ownership interest 
in HCGS by PSEG Nuclear. According to the application, depending upon 
the timing of regulatory approvals sought by PSEG Nuclear concerning 
other transfer matters not involving ACE, as an interim step the 
interest of ACE to be acquired by PSEG Nuclear may be transferred first 
to PSEG Power LLC, the parent of PSEG Nuclear, or to PSE&G, and then to 
PSEG Nuclear. No physical changes or significant changes in the day-to-
day management and operations of HCGS are proposed in the application.
    PSE&G also requested approval of a conforming license amendment to 
reflect the transfer. The amendment would replace references to ACE 
with PSEG Nuclear.
    Approval of the transfer and conforming license amendment was 
requested pursuant to 10 CFR 50.80 and 50.90. A notice of the 
application for transfer approval as well as the request for amendment 
and an opportunity for a hearing was published in the Federal Register 
on February 18, 2000 (65 FR 8453). 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 consents in writing. 
After reviewing the information submitted in the application and other 
information before the Commission, the NRC staff has determined that 
PSEG Nuclear is qualified to hold the license to the same extent the 
license is now held by ACE, and that the transfer of the license, 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 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 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 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. These findings are supported by a Safety Evaluation dated 
April 21, 2000.

III

    Accordingly, pursuant to Sections 161b, 161i, and 184 of the Atomic 
Energy Act of 1954, as amended, 42 U.S.C. 2201(b), 2201(i), and 2234, 
and 10 CFR 50.80, It Is Hereby Ordered That the license transfer from 
ACE to PSEG Nuclear referenced above is approved, subject to the 
following conditions:
    1. Any interim transaction described in the application whereby 
ACE's interest in HCGS is first acquired by PSE&G, PSEG Power, or any 
other entity prior to the acquisition by PSEG Nuclear of such interest, 
shall not result in the acquisition, possession, or use of HCGS, or any 
activity for which a license is required under the Atomic Energy Act of 
1954, as amended, by any entity other than PSEG Nuclear, unless such 
result is expressly approved by a separate order upon further 
application. This Order shall not be deemed to provide consent under 10 
CFR 50.80 to the transfer of the license for HCGS with respect to ACE's 
interest in HCGS to any entity other than PSEG Nuclear.
    2. ACE will transfer on or about the closing date to the PSEG 
Nuclear decommissioning trusts for HCGS, a minimum of $9.9 million.
    3. The decommissioning trust agreement(s) for HCGS 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 the 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.

[[Page 24721]]

    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.
    4. After receipt of all required regulatory approvals of the 
subject transfer, PSE&G 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 7 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), a 
license amendment that makes changes, as indicated in Enclosure 2 to 
the cover letter forwarding this Order, to conform the license to 
reflect the subject license transfer is approved. Such amendment shall 
be issued and made effective at the time the proposed license transfer 
is completed.
    This Order is effective upon issuance.
    For further details with respect to this Order, see the initial 
application dated December 20, 1999, and supplements dated February 11, 
and February 25, 2000, which are available for public inspection at the 
Commission's Public Document Room, the Gelman Building, 2120 L Street, 
NW., Washington, DC. Publically available records will be accessible 
electronically from the ADAMS Public Library component on the NRC Web 
site, http://www.nrc.gov (the Electronic Reading Room).

    Dated at Rockville, Maryland, this 21st day of April 2000.

    For the Nuclear Regulatory Commission.
Samuel J. Collins,
Director, Office of Nuclear Reactor Regulation.
[FR Doc. 00-10503 Filed 4-26-00; 8:45 am]
BILLING CODE 7590-01-P