[Federal Register Volume 66, Number 11 (Wednesday, January 17, 2001)]
[Notices]
[Pages 4044-4046]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 01-1364]


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NUCLEAR REGULATORY COMMISSION

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


In the Matter of PECO Energy Company, PSEG Nuclear LLC, 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), PSEG Nuclear LLC, 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 nonoperating ownership interests of the other joint owners for

[[Page 4045]]

each Peach Bottom unit are as follows: PSEG Nuclear LLC, 42.49 percent; 
DP&L, 7.51 percent; and ACE, 7.51 percent.

II

    By an Order dated April 21, 2000, the NRC approved the transfer of 
the subject Peach Bottom licenses from DP&L and ACE to PECO and PSEG 
Nuclear LLC. Conforming license amendments were also approved. The 
April 21, 2000, Order was in response to an application dated December 
21, 1999, as supplemented February 11, March 2, and March 16, 2000, and 
was based in part on the DP&L and ACE interests in the licenses and in 
the facility being transferred simultaneously, as well as the 
accumulated decommissioning funds of DP&L and ACE being transferred 
collectively to the decommissioning trusts of PECO and PSEG Nuclear 
LLC. The April 21, 2000, Order, with respect to the DP&L and ACE 
license transfers that were proposed to PECO, was issued in the context 
of PECO then existing as a stand-alone electric utility, and did not 
expressly approve the DP&L and ACE license transfers to PECO as it now 
exists as a subsidiary of Exelon Corporation. Further, the Order did 
not approve DP&L and ACE license transfers to Exelon Generation Company 
LLC (EGC), which is to be formed as an indirect subsidiary of Exelon 
Corporation. The NRC did, however, issue Orders dated August 3, 2000, 
and October 5, 2000, that respectively approved the direct transfer of 
the Peach Bottom licenses, to the extent now held by PECO, to EGC, and 
the indirect transfer of the Peach Bottom licenses, again to the extent 
now held by PECO, to Exelon Corporation (which indirect transfer 
occurred on October 20, 2000, by reason of PECO becoming at that time a 
wholly-owned subsidiary of Exelon Corporation).
    By application dated October 10, 2000, PECO, PSEG Nuclear LLC, 
DP&L, and ACE requested approvals as necessary to allow the Peach 
Bottom licenses, to the extent now held by DP&L and ACE, to be 
transferred to PECO (as a subsidiary of Exelon Corporation), to EGC 
(whether the transferor(s) are DP&L, ACE, or PECO), and to PSEG Nuclear 
LLC, at two different times, namely, the DP&L transfers first, and the 
ACE transfers second, if at all. The October 10, 2000, application also 
requested that the NRC extend the effectiveness of the April 21, 2000, 
Order to December 31, 2001. No physical changes or changes in the 
management or operations of the Peach Bottom units are proposed in the 
application. The application also requested the approval of conforming 
license amendments to reflect the license transfers that are the 
subject of the application. The proposed amendments would delete 
references in the licenses to DP&L and ACE as licensees, as each 
respective interest is transferred, and add EGC to the licenses at the 
appropriate time.
    Approval of the transfers encompassed by the October 10, 2000, 
application and conforming license amendments was requested pursuant to 
10 CFR 50.80 and 50.90. A notice of the license transfer application 
and the conforming amendment request, and an opportunity for a hearing 
was published in the Federal Register on November 27, 2000 (65 FR 
70740). No hearing requests or written comments 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 October 10, 
2000, application, the Orders referenced above dated April 21, August 
3, and October 5, 2000, and the underlying applications and safety 
evaluations regarding those Orders, and other information before the 
Commission, the NRC staff has determined that PSEG Nuclear LLC is 
qualified to hold, in addition to the interests in the licenses it 
presently holds, (1) one-half of the interest in the Peach Bottom 
licenses now held by DP&L, and (2) one-half of the interest in the 
Peach Bottom licenses now held by ACE; that PECO, as it presently 
exists as a subsidiary of Exelon Corporation, is qualified to hold, in 
addition to the interests in the licenses it presently holds, (1) one-
half of the interest in the Peach Bottom licenses now held by DP&L, and 
(2) one-half of the interest in the Peach Bottom licenses now held by 
ACE; and that EGC is qualified to hold, in addition to the interests in 
the licenses that it may hold by virtue of transfers from PECO 
previously and separately approved by the August 3, 2000, Order, (1) 
one-half of the interest in the Peach Bottom licenses now held by DP&L, 
which one-half interest may be first transferred to PECO and then to 
EGC or may be directly transferred to EGC from DP&L, and (2) one-half 
of the interest in the Peach Bottom licenses now held by ACE, which 
one-half interest may be first transferred to PECO and then to EGC or 
may be directly transferred to EGC from ACE; and that each transfer of 
the licenses, as described, 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 December 27, 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 each license transfer 
described in Section II of this Order is approved, subject to the 
following conditions:
    1. DP&L shall transfer to the PECO or EGC decommissioning trusts 
for Peach Bottom, as appropriate to the transferee, and to the PSEG 
Nuclear LLC decommissioning trusts for Peach Bottom at the time DP&L's 
interests in the Peach Bottom licenses are transferred to PECO or EGC 
and to PSEG Nuclear LLC, all of DP&L's accumulated decommissioning 
trust funds for Peach Bottom Units 2 and 3, divided equally between the 
PECO or EGC trusts, as appropriate to the transferee, and the PSEG 
Nuclear LLC trusts. Immediately following such transfer, the amounts in 
the PECO or EGC and PSEG Nuclear LLC decommissioning trusts combined 
with the additional payments from ACE that would be owed to PECO or EGC 
and to PSEG Nuclear LLC under the respective contractual commitments 
referenced in the application, which contractual commitments shall be 
in force and effect at the time of the transfer, and that in turn would 
be contributed to the respective decommissioning trusts as represented

[[Page 4046]]

in the application must, with respect to the interests in Peach Bottom 
Units 2 and 3 transferred from DP&L that PECO or EGC and PSEG Nuclear 
LLC would then hold, be at a level no less than the formula amounts 
under 10 CFR Section 50.75.
    2. ACE shall transfer to the PECO or EGC decommissioning trusts for 
Peach Bottom, as appropriate to the transferee, and to the PSEG Nuclear 
LLC decommissioning trusts for Peach Bottom at the time ACE's interests 
in the Peach Bottom licenses are transferred to PECO or EGC and to PSEG 
Nuclear LLC, all of ACE's accumulated decommissioning trust funds for 
Peach Bottom Units 2 and 3. Immediately following such transfer, the 
amounts in the PECO or EGC and PSEG Nuclear LLC decommissioning trusts 
must, with respect to the interests in Peach Bottom Units 2 and 3 
transferred from DP&L and ACE that PECO or EGC and PSEG Nuclear LLC 
would then hold, be at a level no less than the formula amounts under 
10 CFR Section 50.75.
    3. The decommissioning trust agreements for Peach Bottom Units 2 
and 3, with respect to decommissioning trust funds held by EGC and PSEG 
Nuclear LLC shall provide or continue to provide essentially that:
    a. The agreement must be in a form acceptable to the NRC.
    b. Investments in the securities or other obligations of the 
respective parent of the respective licensee, i.e., EGC or PSEG Nuclear 
LLC, 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, other than for 
ordinary administrative expenses, shall be made by the trustee until 
the trustee has first given the NRC 30 days prior written 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.
    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(a)(3) of the Federal Energy 
Regulatory Commission's regulations.
    4. With respect to each transfer approved by this Order, after 
receipt of all required regulatory approvals, the relevant transferor 
and transferee 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 1 business day before the date of closing. 
If any transfer approved by this Order is not completed by December 31, 
2001, this Order shall become null and void with respect to such 
transfer; 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 the Peach Bottom 
licenses to reflect the subject transfers are approved. Such amendments 
as appropriate to the particular license transfer occurring shall be 
issued and made effective at the time the proposed corresponding 
license transfer is completed.
    It Is Further Ordered that to the extent the previous Order, issued 
April 21, 2000, related to the license transfers approved by this 
Order, is inconsistent with this Order, the April 21, 2000, Order is 
hereby superseded. Also, condition 2 of the April 21, 2000, Order is 
modified to supplement the reference to PECO with a reference to EGC in 
the alternative, as appropriate to the actual transferee. In addition, 
for good cause shown in the application, namely, the delay in receiving 
other necessary regulatory approvals, the approval of any concurrent 
transfer of one-half of the DP&L interests and one-half of the ACE 
interests in the Peach Bottom licenses to PSEG Nuclear LLC shall remain 
effective until December 31, 2001, under the applicable terms and 
conditions set forth in the April 21, 2000, Order.
    This Order is effective upon issuance.
    For further details with respect to this Order, see the application 
dated October 10, 2000, and the related safety evaluation issued with 
this Order. Also see the application dated December 21, 1999, and 
supplements thereto dated February 11, March 2, and March 16, 2000, and 
the Orders and related safety evaluations dated August 3, and October 
5, 2000, pertaining to related Peach Bottom license transfers involving 
EGC and PECO, which may be examined, and/or copied for a fee, at the 
NRC's Public Document Room, located at One WhiteFlint North, 11555 
Rockville Pike (first floor), Rockville, MD, and are accessible 
electronically through the ADAMS Public Electronic Reading Room link at 
the NRC Web site http://www.nrc.gov.

    Dated at Rockville, Maryland, this 27th day of December 2000.
    For the Nuclear Regulatory Commission.
Jacqueline E. Silber,
Acting Director, Office of Nuclear Reactor Regulation.
[FR Doc. 01-1364 Filed 1-16-01; 8:45 am]
BILLING CODE 7590-01-P