[Federal Register Volume 70, Number 141 (Monday, July 25, 2005)]
[Pages 42592-42593]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: E5-3942]



[Docket Nos. 50-498 AND 50-499]

STP Nuclear Operating Company, et al. South Texas Project, Units 
1 and 2; Notice of Consideration of Approval of Application Regarding 
Proposed Corporate Restructuring and Opportunity for a Hearing

    The U.S. Nuclear Regulatory Commission (NRC or the Commission) is 
considering issuance of an order under Section 50.80 of Title 10 of the 
Code of Federal Regulations (10 CFR) approving the indirect transfer of 
Facility Operating License Nos. NPF-76 and NPF-80 for South Texas 
Project (STP), Units 1 and 2, respectively, to the extent held by Texas 
Genco, LP (Texas Genco).
    The June 28, 2005, application requests the consent of the NRC to 
the proposed indirect transfer of control of the STP, Units 1 and 2, 
licenses to the extent held by Texas Genco. Texas Genco is a 44 percent 
owner and non-operating licensee of STP, Units 1 and 2. According to 
the application, filed by STP Nuclear Operating Company (STPNOC) on 
behalf of Texas Genco, Texas Genco is indirectly owned by Texas Genco 
Holdings, Inc., which in turn is wholly owned by Texas Genco LLC. Texas 
Genco LLC is owned by investment funds affiliated with The Blackstone 
Group, Hellman & Friedman LLC, Kohlberg Kravis Roberts & Co. L.P., and 
Texas Pacific Group (the Investment Funds) and certain members of the 
management team (Management owners).
    As stated in the application, the ultimate owners of Texas Genco 
are proposing a corporate restructuring such

[[Page 42593]]

that several new entities would be interposed between (i) the 
Investment Funds and Management owners and (ii) Texas Genco LLC. This 
proposed restructuring is in anticipation of a proposed initial public 
offering of a minority interest in Texas Genco Inc. Texas Genco Inc., 
was incorporated on May 20, 2005, as a wholly-owned subsidiary of 
another new entity, Texas Genco Sponsor LLC. Immediately prior to the 
initial public offering, Texas Genco Sponsor LLC and Texas Genco Inc., 
will form a new limited liability company, Texas Genco Holdings LLC.
    Following certain transactions described in the application, and 
following the initial public offering, Texas Genco Inc., will become 
the sole managing member of Texas Genco Holdings LLC, and Texas Genco 
Holdings LLC will become the sole owner of Texas Genco LLC and the 
indirect owner of licensee Texas Genco, which shall at all times 
continue to be a licensed owner of STP. According to the application, 
the Investment Funds and Management owners would control Texas Genco 
Inc., through their ownership of a majority of the voting power in 
Texas Genco Inc., and continue to ultimately control Texas Genco.
    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 shall give its consent in 
writing. The Commission will approve an application for the transfer of 
a license, if the Commission determines that the proposed transferee is 
qualified to hold the license, and that the transfer is otherwise 
consistent with applicable provisions of law, regulations, and orders 
issued by the Commission pursuant thereto.
    The filing of requests for hearing and petitions for leave to 
intervene, and written comments with regard to the license transfer 
application, are discussed below.
    Within 20 days from the date of publication of this notice, any 
person whose interest may be affected by the Commission's action on the 
application may request a hearing and, if not the applicant, may 
petition for leave to intervene in a hearing proceeding on the 
Commission's action. Requests for a hearing and petitions for leave to 
intervene should be filed in accordance with the Commission's rules of 
practice set forth in Subpart C, ``Rules of General Applicability: 
Hearing Requests, Petitions to Intervene, Availability of Documents, 
Selection of Specific Hearing Procedures, Presiding Officer Powers, and 
General Hearing Management for NRC Adjudicatory Hearings,'' of 10 CFR 
Part 2. In particular, such requests and petitions must comply with the 
requirements set forth in 10 CFR 2.309. Untimely requests and petitions 
may be denied, as provided in 10 CFR 2.309(c)(1), unless good cause for 
failure to file on time is established. In addition, an untimely 
request or petition should address the factors that the Commission will 
also consider, in reviewing untimely requests or petitions, set forth 
in 10 CFR 2.309(c)(1)(i)-(viii).
    Requests for a hearing and petitions for leave to intervene should 
be served upon Mr. John E. Matthews, Morgan, Lewis, & Bockius, LLP, 
1111 Pennsylvania Avenue, NW., Washington, DC 20004, attorney for 
STPNOC; Nicholas S. Reynolds, Winston & Strawn LLP, 1700 K Street, NW., 
Washington, DC 20006-3817, attorney for Texas Genco; the General 
Counsel, U.S. Nuclear Regulatory Commission, Washington, DC 20555-0001 
(e-mail address for filings regarding license transfer cases only: 
[email protected]); and the Secretary of the Commission, U.S. Nuclear 
Regulatory Commission, Washington, DC 20555-0001, Attention: 
Rulemakings and Adjudications Staff, in accordance with 10 CFR 2.302 
and 2.305.
    The Commission will issue a notice or order granting or denying a 
hearing request or intervention petition, designating the issues for 
any hearing that will be held and designating the Presiding Officer. A 
notice granting a hearing will be published in the Federal Register and 
served on the parties to the hearing.
    As an alternative to requests for hearing and petitions to 
intervene, within 30 days from the date of publication of this notice, 
persons may submit written comments regarding the license transfer 
application, as provided in 10 CFR 2.1305. The Commission will consider 
and, if appropriate, respond to these comments, but such comments will 
not otherwise constitute part of the decisional record. Comments should 
be submitted to the Secretary, U.S. Nuclear Regulatory Commission, 
Washington, DC 20555-0001, Attention: Rulemakings and Adjudications 
Staff, and should cite the publication date and page number of this 
Federal Register notice. For further details with respect to this 
action, see the application dated June 28, 2005, available for public 
inspection at the Commission's Public Document Room (PDR), located at 
One White Flint North, Public File Area O1 F21, 11555 Rockville Pike 
(first floor), Rockville, Maryland. Publicly available records will be 
accessible electronically from the Agencywide Documents Access and 
Management System's (ADAMS) Public Electronic Reading Room on the 
Internet at the NRC Web site, http://www.nrc.gov/reading-rm/adams.html. 
Persons who do not have access to ADAMS or who encounter problems in 
accessing the documents located in ADAMS, should contact the NRC PDR 
Reference staff by telephone at 1-800-397-4209, 301-415-4737 or by e-
mail to [email protected].

    Dated at Rockville, Maryland this 18th day of July, 2005.

    For the Nuclear Regulatory Commission.
David H. Jaffe,
Senior Project Manager, Section 1, Project Directorate IV, Division of 
Licensing Project Management, Office of Nuclear Reactor Regulation.
[FR Doc. E5-3942 Filed 7-22-05; 8:45 am]