[Federal Register Volume 70, Number 162 (Tuesday, August 23, 2005)]
[Notices]
[Pages 49322-49323]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: E5-4596]
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NUCLEAR REGULATORY COMMISSION
[Docket Nos. 50-498 and 50-499; License Nos. NPF-76 and NPF-80]
In the Matter of Centerpoint Energy, Inc., Texas Genco, LP (South
Texas Project, Units 1 and 2); Order Approving Application Regarding
Indirect License Transfers
I
STP Nuclear Operating Company (STPNOC or the licensee) and owners
Texas Genco, LP (Texas Genco or the applicant), the City Public Service
Board of San Antonio (CPS), and the City of Austin, Texas (COA) are
holders of Facility Operating License Nos. NPF-76 and NPF-80, which
authorize the possession, use, and operation of the South Texas
Project, Units 1 and 2 (the facility or STP). STPNOC is licensed by the
U.S. Nuclear Regulatory Commission (NRC or Commission) to operate STP.
The facility is located at the licensees' site in Matagorda County,
Texas.
II
By application dated June 28, 2005, as supplemented by letter dated
August 4, 2005, (collectively referred to herein as the application),
STPNOC, acting on behalf of Texas Genco, requested that the NRC,
pursuant to 10 CFR 50.80, consent to the proposed indirect transfer of
control of the STP licenses to the extent held by Texas Genco. Texas
Genco is a 44 percent owner and non-operating licensee of STP.
According to the application filed by 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.,
[[Page 49323]]
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 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.
Approval of the indirect transfer of the facility operating
licenses was requested by STPNOC pursuant to 10 CFR 50.80. Notice of
the request for approval and an opportunity for a hearing was published
in the Federal Register on July 25, 2005 (70 FR 42592). No comments or
hearing requests were received.
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 STPNOC and other
information before the Commission, the NRC staff concludes that the
proposed transactions and resulting indirect transfer of control of
Texas Genco will not affect the qualifications of Texas Genco as a
holder of the STP licenses, and that the indirect transfer of control
of the licenses as held by Texas Genco, to the extent effected by the
proposed transactions discussed above, is otherwise consistent with the
applicable provisions of laws, regulations, and orders issued by the
NRC, pursuant thereto.
The findings set forth above are supported by a safety evaluation
dated August 16, 2005.
III
Accordingly, pursuant to Sections 161b, 161i, 161o, and 184 of the
Atomic Energy Act of 1954, as amended (the Act), 42 U.S.C. 2201(b),
2201(i), 2201(o), and 2234; and 10 CFR 50.80, it is hereby ordered that
the application regarding the indirect license transfers is approved,
subject to the following condition:
Should the proposed indirect license transfer not be completed
within one year from the date of issuance, this Order shall become
null and void, provided, however, upon written application and good
cause shown, such date may in writing be extended.
This Order is effective upon issuance.
For further details with respect to this Order, see the initial
application dated June 28, 2005, as supplemented by letter dated August
4, 2005, and the safety evaluation dated August 16, 2005, which are
available for public inspection at the Commission's Public Document
Room (PDR), located at One White Flint North, Public File Area 01 F21,
11555 Rockville Pike (first floor), Rockville, Maryland and accessible
electronically from the Agencywide Documents Access and Management
System (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 16th day of August 2005.
For the Nuclear Regulatory Commission.
Ledyard B. Marsh,
Director, Division of Licensing Project Management, Office of Nuclear
Reactor Regulation.
[FR Doc. E5-4596 Filed 8-22-05; 8:45 am]
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