[Federal Register Volume 66, Number 188 (Thursday, September 27, 2001)]
[Notices]
[Pages 49427-49428]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 01-24176]


-----------------------------------------------------------------------

NUCLEAR REGULATORY COMMISSION

[Docket No. 50-305, License No. DPR-43]


In the Matter of Wisconsin Public Service Corporation, et al. 
(Kewaunee Nuclear Power Plant); Order Approving Transfer of License and 
Conforming Amendment

I.

    Wisconsin Public Service Corporation (WPSC), Madison Gas & Electric 
Company (MG&E), and Wisconsin Power & Light Company (WP&L) are the 
licensed owners and Nuclear Management Company, LLC (NMC), is the 
exclusive licensed operator of the Kewaunee Nuclear Power Plant (KNPP), 
and in regard thereto, hold Facility Operating License No. DPR-43. KNPP 
(the facility) is located in Kewaunee County, Wisconsin.

[[Page 49428]]

II.

    By application dated April 30, 2001, as supplemented June 27 and 
August 3, 2001, NMC, on behalf of WPSC, MG&E, and WP&L, requested the 
consent of the U.S. Nuclear Regulatory Commission (NRC or Commission) 
to a proposed transfer of the license for KNPP, to the extent held by 
MG&E, to WPSC. The application and supplements are collectively herein 
referred to as ``the application,'' unless otherwise indicated. The 
application also requested the approval of a conforming license 
amendment to reflect the transfer of the license.
    In connection with the transfer, WPSC, presently the holder of a 
41.2-percent ownership interest in KNPP, would assume the 17.2-percent 
ownership interest in KNPP currently held by MG&E, resulting in WPSC 
holding a 59-percent ownership interest in KNPP. WP&L is not involved 
in the transfer of MG&E's interest and will remain a licensee with 
respect to its 41-percent ownership interest in KNPP. NMC will maintain 
its responsibility for the operation of KNPP. The application states 
that WPSC would assume the decommissioning funding assurance obligation 
that is currently the responsibility of MG&E, in addition to remaining 
responsible for such costs associated with WPSC's current ownership 
interest in KNPP.
    The proposed conforming license amendment would delete references 
to MG&E in the license, as appropriate, to reflect the proposed 
transfer.
    The application requested approval of the transfer of the license 
and the conforming license amendment pursuant to 10 CFR 50.80 and 10 
CFR 50.90. The NRC staff published a notice of the request for approval 
of the transfer of the license and conforming amendment, and an 
opportunity for a hearing in the Federal Register on July 27, 2001 (66 
FR 39214). The Commission received no requests for hearing or written 
comments pursuant to the 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 and other information 
before the Commission, and relying upon the representations and 
agreements contained in the application, the NRC staff has determined 
that WPSC is qualified to hold the license to the extent proposed in 
the application, and that the transfer of the license, to the extent 
held by MG&E, to WPSC, 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 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 
amendment 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 September 20, 2001.

III.

    Accordingly, pursuant to sections 161b, 161i, 161o and 184 of the 
Atomic Energy Act of 1954, as amended, 42 U.S.C. 2201(b), 2201(i), 
2201(o) and 2234; and 10 CFR 50.80, it is hereby ordered that the 
transfer of the license, as described herein, to WPSC is approved, 
subject to the following conditions:

    (1) WPSC shall take all necessary steps to ensure that the 
decommissioning trusts are maintained in accordance with the license 
transfer application regarding the transfer of MG&E's ownership 
interest in KNPP to WPSC and the requirements of this Order 
approving the transfer, and consistent with the safety evaluation 
supporting this Order. Additionally, if the MG&E Nonqualified Fund 
is not transferred to WPSC, WPSC, or NMC acting on WPSC's behalf, 
shall explicitly include the status of the MG&E Nonqualified Fund in 
all future decommissioning funding status reports that WPSC, or NMC, 
submit in accordance with 10 CFR 50.75(f)(1).
    (2) On the closing date of the transfer of MG&E's interest in 
KNPP to WPSC, MG&E shall transfer to WPSC all of MG&E's accumulated 
qualified decommissioning trust funds for KNPP. Immediately 
following such transfer, the amounts for radiological 
decommissioning of KNPP in WPSC's decommissioning trusts must, with 
respect to the interests in KNPP that WPSC would then hold, be at a 
level no less than the formula amounts under 10 CFR 50.75.
    (3) After receipt of all required regulatory approvals of the 
transfer of MG&E's interest in KNPP to WPSC, WPSC or NMC 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.
    (4) If the transfer of the license is not completed by September 
30, 2002, this Order shall become null and void, provided, however, 
upon written application and for good cause shown, such date may in 
writing 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. The 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 April 30, 2001, the supplemental submittals dated 
June 27 and August 3, 2001, and the safety evaluation dated September 
20, 2001, 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 at the NRC Web 
site (http://www.nrc.gov).

    Dated at Rockville, Maryland this 20th day of September 2001.
    For the Nuclear Regulatory Commission.
Samuel J. Collins,
Director, Office of Nuclear Reactor Regulation.
[FR Doc. 01-24176 Filed 9-26-01; 8:45 am]
BILLING CODE 7590-01-P