[Federal Register Volume 65, Number 157 (Monday, August 14, 2000)]
[Notices]
[Pages 49614-49615]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 00-20581]


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NUCLEAR REGULATORY COMMISSION

[Docket Nos. 50-352 and 50-353]


PECO Energy Company (Limerick Generating Station, Units 1 and 2); 
Order Approving Transfer of Licenses and Conforming Amendments

I

    PECO Energy Company (PECO, the licensee) is the holder of Facility 
Operating Licenses Nos. NPF-39 and NPF-85, which authorize the 
possession, use, and operation of the Limerick Generating Station 
(Limerick), Units 1 and 2 (the facility). The facility is located at 
the licensee's site in Montgomery County, Pennsylvania.

II

    Under cover of a letter dated December 20, 1999, PECO submitted an 
application requesting approval of the proposed transfer of the 
facility operating licenses to a new generating company, Exelon 
Generation Company, LLC (Exelon Generation Company) to be formed in 
connection with the proposed merger of Unicom Corporation (Unicom), the 
parent of Commonwealth Edison Company, and PECO. PECO also requested 
approval of conforming license amendments to reflect the transfer. 
Supplemental information was provided by submittals dated January 3, 
February 14, March 10, March 23, March 30, and June 15, 2000. 
Hereinafter, the December 20, 1999, application and supplemental 
information will be referred to collectively as the ``application.'' 
The conforming amendments would remove PECO from the facility operating 
licenses and would add Exelon Generation Company in its place. After 
completion of the proposed transfer, Exelon Generation Company will be 
the sole owner and operator of Limerick.
    By a separate application dated December 20, 1999, Commonwealth 
Edison requested approval of the transfer of the facility operating 
licenses that it holds to Exelon Generation Company. That application 
is being addressed separately.
    Approval of the transfer of the facility operating licenses and 
conforming license amendments was requested by PECO pursuant to 10 CFR 
50.80 and 10 CFR 50.90. Notice of the request for approval and an 
opportunity for a hearing was published in the Federal Register on 
March 9, 2000 (65 FR 12587). The Commission received no comments or 
requests for hearing pursuant to such notice.
    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 by PECO, and other 
information before the Commission, and relying upon the representation 
and agreements contained in the application, the NRC staff has 
determined that Exelon Generation Company is qualified to hold the 
licenses, and that the transfer of the licenses to Exelon Generation 
Company is otherwise consistent with applicable provisions of law, 
regulations, and orders issued by the Commission, subject to the 
conditions set forth below. 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, 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 regulation of 
the Commission; there is reasonable

[[Page 49615]]

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 amendments will be in accordance with 10 CFR Part 51 of the 
Commission's regulations and all applicable requirements have been 
satisfied.
    The findings set forth above are supported by a safety evaluation 
dated August 3, 2000.

III

    Accordingly, pursuant to Sections 161b, 161i, 161o, and 184 of the 
Atomic Energy Act of 1954, as amended, 42 USC 2201(b), 2201(i), 
2201(o), and 2234; and 10 CFR 50.80, It Is Hereby Ordered that the 
transfer of the licenses as described herein to Exelon Generation 
Company is approved, subject to the following conditions:
    (1) Exelon Generation Company shall provide to 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 Exelon Generation Company to its 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 Exelon Generation 
Company's consolidated net utility plant, as recorded on Exelon 
Generation Company's books of account.
    (2) PECO shall transfer to Exelon Generation Company the 
decommissioning trust funds for Limerick, Units 1 and 2, in the 
following minimum amounts, when Limerick, Units 1 and 2, are 
transferred to Exelon Generation Company:
Limerick, Unit 1--$94,127,446
Limerick, Unit 2--$59,687,081
    (3) The decommissioning trust agreements for Limerick, Units 1 and 
2, at the time the transfer of the units to Exelon Generation Company 
is effected and thereafter, are subject to the following:
    (a) The decommissioning trust agreements must be in a form 
acceptable to the NRC.
    (b) With respect to the decommissioning trust funds, investments in 
the securities or other obligations of Exelon Corporation or affiliates 
thereof, or their successors or assigns are prohibited. 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 are prohibited.
    (c) The decommissioning trust agreements for Limerick, Units 1 and 
2, must provide that no disbursements or payments from the trusts shall 
be made by the trustee unless the trustee has first given the Director 
of the Office of Nuclear Reactor Regulation 30 days prior written 
notice of payment. The decommissioning trust agreements shall further 
contain a provision that no disbursements or payments from the trusts 
shall be made if the trustee receives prior written notice of objection 
from the NRC.
    (d) The decommissioning trust agreements must provide that the 
agreement can not be amended in any material respect without 30 days 
prior written notification to the Director of the Office of Nuclear 
Reactor Regulation.
    (e) The appropriate section of the decommissioning trust agreements 
shall state that 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(a)(3) of the Federal 
Energy Regulatory Commission's regulations. ]
    (4) Exelon Generation Company shall take all necessary steps to 
ensure that the decommissioning trusts are maintained in accordance 
with the application for approval of the transfer of Limerick, Units 1 
and 2, licenses and the requirements of this Order approving the 
transfer, and consistent with the safety evaluation supporting this 
Order.
    (5) Before the completion of the transfer of Limerick, Units 1 and 
2, to it, Exelon Generation Company shall provide the Director of the 
Office of Nuclear Reactor Regulation satisfactory documentary evidence 
that Exelon Generation Company has obtained the appropriate amount of 
insurance required of licensees under 10 CFR Part 140 of the 
Commission's regulations.
    (6) After receipt of all required regulatory approvals of the 
transfer of Limerick, Units 1 and 2, PECO shall inform the Director of 
the Office of Nuclear Reactor Regulation in writing, of such receipt 
within 5 business days, and of the date of the closing of the transfer 
no later than 7 business days prior to the date of the closing. Should 
the transfer of the licenses not be completed by July 31, 2001, this 
Order shall become null and void, provided, however, upon written 
application and for good cause shown, such date may in writing be 
extended.
    (7) Approval of the transfer of the licenses for Limerick, Units 1 
and 2 is conditioned upon all of the PECO and Commonwealth Edison 
Company nuclear units described in the application to be transferred to 
Exelon Generation Company becoming owned by Exelon Generation Company 
contemporaneously
    It is further ordered that, consistent with 10 CFR 2.1315(b), a 
license amendment that makes changes, as indicated in Enclosure 5 to 
the cover letter forwarding this Order, to conform the licenses to 
reflect the subject license transfers is approved. The 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 December 20, 1999, and supplemental submittals dated 
January 3, February 14, March 10, March 23, March 30, and June 15, 
2000, and the safety evaluation dated August 3, 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 3rd day of August 2000.

For the Nuclear Regulatory Commission.
Samuel J. Collins,
Director, Office of Nuclear Reactor Regulation.
[FR Doc. 00-20581 Filed 8-11-00; 8:45 am]
BILLING CODE 7590-01-U