[Federal Register Volume 70, Number 245 (Thursday, December 22, 2005)]
[Notices]
[Pages 76080-76082]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: E5-7723]


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NUCLEAR REGULATORY COMMISSION

[Docket Nos. 50-334, 50-412, 50-346 and 50-440; License Nos. DPR-66 and 
NPF-73, NPF-3 and NPF-58]


Pennsylvania Power Company, Ohio Edison Company, OES Nuclear, 
Inc., The Cleveland Electric, Illuminating Company, The Toledo Edison 
Company, Firstenergy Nuclear Operating Company, (Beaver Valley Power 
Station, Units 1 and 2), (Davis-Besse Nuclear Power Station, Unit 1), 
(Perry Nuclear Power Plant, Unit 1); Order Superceding Order of 
November 15, 2005 Approving Transfer of Licenses and Conforming 
Amendments

    FirstEnergy Nuclear Operating Company (FENOC) and Pennsylvania 
Power Company (Penn Power), Ohio Edison Company (Ohio Edison), OES 
Nuclear, Inc. (OES Nuclear), the Cleveland Electric Illuminating 
Company (Cleveland Electric), and the Toledo Edison Company (Toledo 
Edison), are holders of Facility Operating Licenses Nos. DPR-66, NPF-
73, NPF-3 and NPF-58, which authorize the possession, use, and 
operation of Beaver Valley Power Station, Units 1 (BVPS 1) and 2 (BVPS 
2; together with BVPS 1, BVPS), Davis-Besse Nuclear Power Station, Unit 
1 (Davis-Besse), and Perry Nuclear Power Plant, Unit 1 (Perry), 
respectively. FENOC is licensed by the U.S. Nuclear Regulatory 
Commission (NRC, the Commission) to operate BVPS, Davis-Besse, and 
Perry (the facilities). The facilities are located at the licensees' 
sites in Beaver County, Pennsylvania, Ottawa County, Ohio, and Lake 
County, Ohio, respectively.
    By letter dated May 18, 2005, FENOC submitted an application 
requesting approval of direct license transfers that would be necessary 
in connection with the following proposed transfers to FirstEnergy 
Nuclear Generation Corporation (FENGenCo), a new nuclear generation 
subsidiary of FirstEnergy: Penn Power's 65-percent undivided ownership 
interest in BVPS 1, 13.74-percent undivided ownership interest in BVPS 
2, and 5.24-percent undivided ownership interest in Perry.
    By letter dated June 1, 2005, FENOC submitted a second application 
requesting approval of direct license transfers that would be necessary 
in connection with the following proposed transfers to FENGenCo: Ohio 
Edison's 35-percent undivided ownership interest in BVPS 1 and 20.22-
percent undivided ownership interest in BVPS 2; OES Nuclear's 17.42-
percent undivided ownership interest in Perry; Cleveland Electric's 
24.47-percent undivided ownership interest in BVPS 2, 44.85-percent 
undivided ownership interest in Perry, and 51.38-percent undivided 
ownership interest in Davis-Besse; and, Toledo Edison's 1.65-percent 
undivided ownership interest in BVPS 2, 19.91-percent undivided 
ownership interest in Perry, and 48.62-percent undivided ownership 
interest in Davis-Besse.
    Supplemental information was provided by letters dated July 15 and 
October 31, 2005, (hereinafter, the May 18 and June 1, 2005, 
applications and supplemental information will be referred to 
collectively as the ``applications''). FENOC also requested approval of 
conforming license amendments that would reflect the proposed transfer 
of ownership of Penn Power's interests in BVPS and Perry to FENGenCo; 
delete the references to Penn Power in the licenses; authorize FENGenCo 
to possess the respective ownership interests in BVPS and Perry; 
reflect the proposed transfer of ownership interests in BVPS, Davis-
Besse, and Perry from Ohio Edison, OES Nuclear, Cleveland Electric, and 
Toledo Edison (Ohio Companies) to FENGenCo; delete the Ohio Companies 
from the licenses except those continuing to hold

[[Page 76081]]

leased interests; and, authorize FENGenCo to possess the respective 
ownership interests in BVPS, Davis-Besse, and Perry being transferred 
by the Ohio Companies. Ohio Edison's 21.66-percent leased interest in 
BVPS 2, Toledo Edison's 18.26-percent leased interest in BVPS 2, and 
Ohio Edison's 12.58-percent leased interest in Perry would not be 
changed. No physical changes to the facilities or operational changes 
were proposed in the applications. After completion of the proposed 
transfers, the role of FENOC would be unchanged.
    Approval of the transfer of the facility operating licenses and 
conforming license amendments is requested by FENOC pursuant to 
Sec. Sec.  50.80 and 50.90 of Title 10 of the Code of Federal 
Regulations (10 CFR). Notices of the requests for approval and 
opportunity for a hearing were published in the Federal Register on 
August 2, 2005 (70 FR 44390-44395). No comments were received. Two 
petitions for leave to intervene pursuant to 10 CFR 2.309 were received 
on August 22, 2005, from the City of Cleveland, Ohio, and American 
Municipal Power-Ohio, Inc. A joint motion to lodge by the City of 
Cleveland, Ohio and Municipal Power Ohio, Inc., was received on 
September 12, 2005. The petitions and motion are under consideration by 
the Commission.
    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. 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 FENGenCo is qualified to hold the ownership interests 
in the facilities previously held by Penn Power and the Ohio Companies, 
and that the transfers of undivided ownership interests in the 
facilities to FENGenCo described in the applications are 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 applications for the proposed 
license amendments comply 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 facilities 
will operate in conformity with the applications, 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.
    On November 15, 2005, the Commission issued, ``Order Approving 
Transfer of Licenses and Conforming Amendments Relating to Beaver 
Valley Power Station, Units 1 and 2, Davis-Besse Nuclear Power Station, 
Unit 1, and Perry Nuclear Power Plant, Unit 1.'' Subsequently, the NRC 
staff determined that corrections were needed to the cover letter, 
Order, conforming amendments and safety evaluations. This Order 
contains the correction and supercedes the Order issued on November 15, 
2005.
    The findings set forth above are supported by a corrected NRC 
safety evaluation dated December 16, 2005.
    Accordingly, pursuant to Sections 161b, 161i, 161o, and 184 of 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 direct transfers of the licenses, as 
described herein, to FENGenCo are approved, subject to the following 
conditions:
    (1) On the closing date(s) of the transfers to FENGenCo of their 
interests in BVPS 1, BVPS 2, Davis-Besse, and Perry, Penn Power, 
Cleveland Electric, Ohio Edison, OES Nuclear, and Toledo Edison shall 
transfer to FENGenCo all of each transferor's respective accumulated 
decommissioning funds for BVPS 1, BVPS 2, Davis-Besse, and Perry, 
except for funds associated with the leased portions of Perry and BVPS 
2, and tender to FENGenCo additional amounts equal to remaining funds 
expected to be collected in 2005, as represented in the application 
dated June 1, 2005, but not yet collected by the time of closing. All 
of the funds shall be deposited in separate external trust funds for 
each of these four reactors in the same amounts as received with 
respect to each unit; to be segregated from other assets of FENGenCo 
and outside its administrative control, as required by NRC regulations, 
and FENGenCo shall take all necessary steps to ensure that these 
external trust funds are maintained in accordance with the requirements 
of this Order approving the transfer of the licenses and consistent 
with the safety evaluation supporting the order and in accordance with 
the requirements of 10 CFR 50.75, ``Reporting and recordkeeping for 
decommissioning planning.''
    (2) By the date of closing of the transfer of the ownership 
interests in BVPS 1, BVPS 2, and Perry, from Penn Power to FENGenCo, 
FENGenCo shall obtain a parent company guarantee from FirstEnergy in an 
initial amount of at least $80 million (in 2005 dollars) to provide 
additional decommissioning funding assurance regarding such ownership 
interests. Required funding levels shall be recalculated annually and, 
as necessary, FENGenCo shall either obtain appropriate adjustments to 
the parent company guarantee or otherwise provide any additional 
decommissioning funding assurance necessary for FENGenCo to meet NRC 
requirements under 10 CFR 50.75.
    (3) The Support Agreements described in the applications dated May 
18, 2005 (up to $80 million), and June 1, 2005 (up to $400 million), 
shall be effective consistent with the representations contained in the 
applications. FENGenCo shall take no action to cause FirstEnergy, or 
its successors and assigns, to void, cancel, or modify the Support 
Agreements without the prior written consent of the NRC staff, except, 
however, the $80 million Support Agreement in connection with the 
transfer of the Penn Power interests may be revoked or rescinded if and 
when the $400 million support agreement described in the June 1, 2005 
application becomes effective. FENGenCo shall inform the Director of 
the Office of Nuclear Reactor Regulation, in writing, no later than 10 
days after any funds are provided to FENGenCo by FirstEnergy under 
either Support Agreement.
    (4) Prior to completion of the transfers of the licenses, FENGenCo 
shall provide the Director of the Office of Nuclear Reactor Regulation 
satisfactory documentary evidence that it has obtained the appropriate 
amount of insurance required of licensees under 10 CFR part 140 of the 
Commission's regulations.
    It is further ordered that, consistent with 10 CFR 2.1315(b), 
license amendments that make changes, as indicated in Enclosures 2 
through 5 to the cover letter forwarding this Order, to conform the 
licenses to reflect the subject direct license transfers are approved. 
FirstEnergy has indicated that the Pennsylvania transfers described in 
the May 18, 2005, application and the Ohio transfers described in the 
June 1, 2005, application, will take place at the

[[Page 76082]]

same time. The amendments shall be issued and made effective at the 
time the proposed direct license transfers are completed.
    It is further ordered that FENOC shall inform the Director of the 
Office of Nuclear Reactor Regulation in writing of the date of closing 
of the transfer of the Penn Power, Cleveland Electric, Ohio Edison, OES 
Nuclear, and Toledo Edison interests in BVPS 1, BVPS 2, Davis-Besse, 
and Perry no later than 5 business days prior to closing. Should the 
transfer of the licenses not be completed by December 31, 2006, this 
Order shall become null and void, provided; however, that upon written 
application and for good cause shown, such date may be extended by 
order.
    This Order supercedes the Order issued on November 15, 2005, and is 
effective as of December 16, 2005.
    For further details with respect to this Order, see the initial 
applications dated May 18 and June 1, 2005, as supplemented by letters 
dated July 15 and October 31, 2005, and the revised non-proprietary 
safety evaluation dated December 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 December 2005.

    For The Nuclear Regulatory Commission.
J.E. Dyer,
Director, Office of Nuclear Reactor Regulation.
 [FR Doc. E5-7723 Filed 12-21-05; 8:45 am]
BILLING CODE 7590-01-P