[Federal Register Volume 65, Number 82 (Thursday, April 27, 2000)]
[Notices]
[Pages 24717-24718]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 00-10505]



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DEPARTMENT OF ENERGY

Nuclear Regulatory Commission

[Docket Nos. 50-277 and 50-278]


PECO Energy Company, Public Service Electric and Gas Company, 
Delmarva Power and Light Company, Atlantic City Electric Company; Peach 
Bottom Atomic Power Station, Units 2 and 3; Order Approving Transfer of 
Licenses and Conforming Amendments

I

    PECO Energy Company (PECO), Public Service Electric and Gas Company 
(PSE&G), Delmarva Power and Light Company (DP&L), and Atlantic City 
Electric Company (ACE) are the joint owners of the Peach Bottom Atomic 
Power Station, Units 2 and 3 (Peach Bottom), located in York County, 
Pennsylvania. They hold Facility Operating Licenses Nos. DPR-44 and 
DPR-56 issued by the U.S. Nuclear Regulatory Commission (NRC or 
Commission) on October 25, 1973, and July 2, 1974, respectively, 
pursuant to part 50 of title 10 of the Code of Federal Regulations (10 
CFR Part 50). Under these licenses, PECO (currently owner of 42.49 
percent of each Peach Bottom unit) is authorized to possess, use, and 
operate the Peach Bottom units. The current, non-operating ownership 
interests of the other joint owners for each Peach Bottom unit are as 
follows: PSE&G, 42.49 percent; DP&L, 7.51 percent; and ACE, 7.51 
percent.

II

    By an application dated December 21, 1999, which was supplemented 
on February 11, March 2, and March 16, 2000 (collectively referred to 
herein as the application), PECO, PSE&G, PSEG Nuclear Limited Liability 
Company (PSEG Nuclear), DP&L, and ACE, requested approval by the NRC of 
the transfer to PECO and PSEG Nuclear of the Peach Bottom licenses, to 
the extent held by DP&L and ACE, in conjunction with the proposed 
acquisition of DP&L's and ACE's ownership interests in the Peach Bottom 
units by PECO and PSEG Nuclear. According to the application, depending 
upon the timing of regulatory approvals sought by PSEG Nuclear 
concerning other transfer matters not involving DP&L and ACE, as an 
interim step the interests of DP&L and ACE to be acquired by PSEG 
Nuclear may be transferred first to PSE&G, and then to PSEG Nuclear. No 
physical changes or significant changes in the day-to-day management 
and operations of the Peach Bottom units are proposed in the 
application. The proposed transfer does not involve any change with 
respect tothe exclusive operating authority of the Peach Bottom units, 
currently held by PECO.
    PECO also requested approval of conforming license amendments to 
reflect the transfer. The amendments would replace references to DP&L 
and ACE, with PSEG Nuclear.
    Approval of the transfer and conforming license amendments 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 amendments 
and an opportunity for a hearing was published in the Federal Register 
on February 18, 2000 (65 FR 8451). 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 gives its consent in 
writing. After reviewing the information submitted in the application 
and other information before the Commission, the NRC staff has 
determined that PECO and PSEG Nuclear are qualified to hold the 
licenses for each Peach Bottom unit, to the same extent the licenses 
are now held by DP&L and ACE 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. 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. Secs. 2201(b), 2201(i), and 
2234; and 10 CFR 50.80, It Is Hereby Ordered That the license transfers 
from DP&L and ACE to PECO and PSEG Nuclear referenced above are 
approved, subject to the following conditions:
    1. Any interim transaction described in the application whereby 
DP&L's and ACE's interests in Peach Bottom Units 2 and 3 are first 
acquired by PSE&G, or any other entity prior to the acquisition by PSEG 
Nuclear of such interest, shall not result in the acquisition, 
possession, or use of Peach Bottom Units 2 and 3, 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 licenses for Peach Bottom Units 2 and 3 with respect to 
DP&L's and ACE's interests in Peach Bottom Units 2 and 3 to any 
entities other than PECO and PSEG Nuclear.
    2. ACE and DP&L will transfer on or about the closing date to the 
respective PECO and PSEG Nuclear decommissioning trusts in equal shares 
a minimum of $42.4 million for Peach Bottom Unit 2, and $43.7 million 
for Peach Bottom Unit 3.
    3. The decommissioning trust agreement(s) for Peach Bottom Units 2 
and 3 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

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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.
    4. After receipt of all required regulatory approvals of the 
subject transfer, PECO 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), 
license amendments that make changes, as indicated in Enclosure 2 to 
the cover letter forwarding this Order, to conform each Peach Bottom 
license to reflect the subject transfers are approved. Such amendments 
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 transfer 
application dated December 21, 1999, and supplements dated February 11, 
March 2, and March 16, 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. 00-10505 Filed 4-26-00; 8:45 am]
BILLING CODE 7590-01-P