[Federal Register Volume 65, Number 237 (Friday, December 8, 2000)]
[Notices]
[Pages 77047-77048]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 00-31294]



[[Page 77047]]

=======================================================================
-----------------------------------------------------------------------

NUCLEAR REGULATORY COMMISSION

[Docket Nos. STN 50-528, STN 50-529, and STN 50-530]


In the Matter of El Paso Electric Company (Palo Verde Nuclear 
Generating Station, Units 1, 2, and 3); Order Approving Application 
Regarding Proposed Corporate Restructuring and Approving Conforming 
Amendments

I

    El Paso Electric Company (EPE) holds minority ownership interests 
(both owned and leased) in Palo Verde Nuclear Generating Station (Palo 
Verde), Units 1, 2, and 3, and in connection therewith is a holder of 
Facility Operating Licenses Nos. NPF-41, NPF-51, and NPF-74 for Palo 
Verde. The facility is located in Maricopa County, Arizona. Other co-
licensees for Palo Verde are Arizona Public Service Company (APS) 
(owner or lessee of 29.1 percent share of each of the three units), 
Salt River Project Agricultural Improvement and Power District (owner 
of a 17.49 percent share), Public Service Company of New Mexico (owner 
of a 10.2 percent share), Southern California Edison Company (owner of 
a 15.8 percent share), Southern California Public Power Authority 
(owner of a 5.91 percent share), and Los Angeles Department of Water 
and Power (owner of a 5.7 percent share). By letter dated September 29, 
2000, the Commission approved the indirect transfer of the Public 
Service Company of New Mexico licenses to a new holding company, and a 
change of its name to Manzano Energy Corporation. The name change will 
become effective at the time the restructuring of Public Service 
Company of New Mexico is completed. APS is the licensed operator of the 
Palo Verde units. The remaining licensees hold possession-only 
licenses.

II

    Pursuant to Section 184 of the Atomic Energy Act of 1954, as 
amended, and 10 CFR 50.80, EPE filed an application dated July 6, 2000, 
as supplemented by letter dated July 7, 2000, from counsel for EPE, 
requesting approval of the indirect transfer of the Palo Verde 
licenses, to the extent held by EPE, to a new holding company, El Paso 
Electric Incorporated. El Paso Electric Incorporated was created to 
implement the public utility restructuring requirements of the New 
Mexico Electric Utility Industry Restructuring Act of 1999, SB 428, 
NMSA 1978, Secs. 62-3A-1 through 23 (1999). The proposed restructuring 
involves the formation of El Paso Electric Incorporated, EPE becoming a 
direct subsidiary of El Paso Electric Incorporated, and a change in 
EPE's name to MiraSol Generating Company. By application dated October 
3, 2000, APS requested approval, pursuant to 10 CFR 50.90, of proposed 
conforming amendments to reflect in the Palo Verde licenses the name 
change of EPE to MiraSol Generating Company that will occur in 
connection with the restructuring. APS will retain its existing 
ownership interest in, and remain the licensed operator of, Palo Verde, 
after the restructuring of EPE, and is not otherwise involved in the 
restructuring. Similarly, none of the other co-licensees are involved 
in the restructuring of EPE. No physical changes to the facility or 
operational changes are proposed in the applications filed by EPE and 
APS. Notice of the applications and an opportunity for hearing was 
published in the Federal Register on November 2, 2000 (65 FR 65885, as 
corrected at 65 FR 70637). No written comments or hearing requests were 
filed.
    Under 10 CFR 50.80, no license shall be transferred, directly or 
indirectly, through transfer of control of the license, unless the 
Commission gives its consent in writing. Upon review of the information 
provided by EPE in its application, the supplement thereto, and other 
information before the Commission, the NRC staff has determined that 
the proposed restructuring will not affect the qualifications of EPE to 
hold the licenses referenced above to the same extent now held by EPE, 
and that the indirect transfer of the licenses, to the extent effected 
by the restructuring, is 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 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 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 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 December 4, 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 
application regarding the proposed restructuring of EPE and indirect 
license transfers is approved, subject to the following conditions:
    1. MiraSol Generating Company shall continue to provide 
decommissioning funding assurance, to be held in its decommissioning 
trusts for Palo Verde Nuclear Generating Station, Units 1, 2, and 3, 
from the date of the indirect license transfers, as represented in the 
respective July 6, 2000, application. In addition, MiraSol Generating 
Company will ensure that its contractual arrangements with its 
transmission and distribution affiliate to obtain necessary 
decommissioning funds for Palo Verde through nonbypassable charges will 
be established and maintained until the decommissioning trust is fully 
funded.
    2. MiraSol Generating Company shall enter into an agreement with 
its transmission and distribution affiliate that shall require the 
deposit of funds collected for decommissioning funding from wires 
charges into MiraSol Generating Company's decommissioning trust 
accounts. A copy of the agreement shall be forwarded to the NRC before 
the completion of the proposed restructuring of EPE.
    3. MiraSol Generating Company shall take all necessary steps to 
ensure that the decommissioning trusts are maintained in accordance 
with the July 6, 2000, application, as supplemented, and the 
requirements of this Order approving the respective indirect transfers, 
and consistent with the safety evaluation supporting this Order.
    4. MiraSol Generating Company shall inform the Director of the 
Office of Nuclear Reactor Regulation, within 30 days of approval by, 
respectively, the Texas Public Utilities Commission and the New Mexico 
Public Regulation Commission, of the nonbypassable charge mechanism of 
recovering decommissioning costs. Within such 30-day period, MiraSol 
Generating Company shall state the total decommissioning costs subject 
to nonbypassable charge recovery and the schedule for funding 
decommissioning costs.

[[Page 77048]]

    It Is Further Ordered that, consistent with 10 CFR 2.1315(b), 
license amendments, as indicated in Enclosure 2 to the cover letter 
forwarding this Order, to reflect the subject restructuring action and 
conditions of this Order are approved. The amendments shall be issued 
and made effective at the time the proposed restructuring action is 
completed.
    This Order is effective upon issuance.
    For further details with respect to this action, see the 
application dated July 6, 2000, supplemental submittals dated July 7 
and October 3, 2000, and the safety evaluation dated December 4, 2000, 
which are available for public inspection at the Commission's Public 
Document Room located at One White Flint North, 11555 Rockville Pike 
(first floor), Rockville, Maryland, and accessible electronically 
through the ADAMS Public Electronic Reading Room link on the NRC Web 
site
(http://www.nrc.gov).

    Dated at Rockville, Maryland, this 4th day of December 2000.

    For the Nuclear Regulatory Commission.
Roy P. Zimmerman,
Acting Director, Office of Nuclear Reactor Regulation.
[FR Doc. 00-31294 Filed 12-7-00; 8:45 am]
BILLING CODE 7590-01-P