[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