[Federal Register Volume 72, Number 150 (Monday, August 6, 2007)]
[Notices]
[Pages 43669-43670]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: E7-15192]


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NUCLEAR REGULATORY COMMISSION

[Docket Nos. 50-266, 50-301 Renewed License Nos. DPR-24 and DPR-27]


In the Matter of Wisconsin Electric Power Company and Nuclear 
Management Company, LLC, (Point Beach Nuclear Plant); Order Approving 
Transfer of Licenses and Conforming Amendments

I.

    Wisconsin Electric Power Company (WEPCO) and Nuclear Management 
Company, LLC (NMC) are holders of the Renewed Facility Operating 
Licenses (FOLs), Nos. DPR-24 and DPR-27, which authorize the 
possession, use and operation of Point Beach Nuclear Plant, Units 1 and 
2 (Point Beach or facility). NMC is licensed by the U.S. Nuclear 
Regulatory Commission (NRC, the Commission) to operate Point Beach. 
WEPCO is licensed to possess Point Beach with respect to WEPCO's 
ownership of the facility. Point Beach is located near Two Rivers, 
Wisconsin.

II.

    By letter dated January 26, 2007, as supplemented by letter dated 
July 11, 2007, NMC, WEPCO and FPL Energy Point Beach, LLC, (FPLE Point 
Beach) submitted an application requesting approval of the direct 
license transfers that would be necessary in connection with WEPCO's 
proposed sale and transfer to FPLE Point Beach of its 100 percent 
ownership interest in Point Beach. The application also requested the 
approval of the transfer of NMC's operating authority to FPLE Point 
Beach. Transfer of the licenses will authorize FPLE Point Beach, 
pursuant to the general license in Section 72.210 of Title 10 of the 
Code of Federal Regulations (10 CFR), to store spent fuel in the 
Independent Spent Fuel Storage Installation (ISFSI) at Point Beach.
    As a potential interim step towards the sale of Point Beach, WEPCO 
and FPLE Point Beach have signed an Interim Operating Agreement that 
would permit WEPCO, at its option, and upon receipt of applicable 
regulatory approvals, to transfer NMC's operating authority to FPLE 
Point Beach prior to the closing of the ownership sale of Point Beach. 
This interim transfer of the operating authority from NMC to FPLE Point 
Beach would not change the financial responsibilities or qualifications 
or the decommissioning funding status of WEPCO as the 100 percent owner 
of Point Beach.
    WEPCO, NMC and FPLE Point Beach requested approval of (1) 
conforming license amendments that would reflect the proposed transfer 
of ownership of and operating authority for Point Beach to FPLE Point 
Beach; and (2) the option of transferring operating authority as an 
interim step to FPLE Point Beach. The amendments for transferring 
ownership and operating authority would include the following: (1) The 
deletion of the references to WEPCO and NMC as owner and operator of 
Point Beach, respectively, and (2) the authorization of FPLE Point 
Beach to possess, use, and operate Point Beach under essentially the 
same conditions and authorization included in the existing licenses. 
Two footnotes containing historical references to the former licensees 
also will be deleted. The applicants did not propose any physical or 
operational changes to the facility. After completion of the proposed 
transfers, FPLE Point Beach would be the owner and the operator of 
Point Beach. The amendments for transferring operational authority as 
an interim step would include the following: (1) The deletion of the 
references to NMC as operator of Point Beach, and replacement with 
references to FPLE Point Beach, and (2) the authorization of FPLE Point 
Beach to operate Point Beach under essentially the same conditions and 
authorization included in the existing licenses. After completion of 
the proposed transfers, FPLE Point Beach would be the operator of Point 
Beach.
    The applicants requested approval of the transfer of the renewed 
FOLs and conforming license amendments pursuant to 10 CFR 50.80 and 
50.90. Notice of the request for approval and opportunity for a hearing 
were published in the Federal Register on February 28, 2007 (72 FR 
9035). No comments were received. No requests for hearing or petitions 
for leave to intervene were received.
    Pursuant to 10 CFR 50.80, no license for a production or 
utilization facility, 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 FPLE 
Point Beach is qualified to hold the licenses for Point Beach to the 
extent now held by WEPCO regarding its ownership interest, and is 
qualified to hold the operating authority under the licenses now held 
by NMC, and the transfer of the licenses as proposed in the application 
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 also found that the application for the 
proposed license amendments 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 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 
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.
    The findings set forth above are supported by an NRC safety 
evaluation dated July 31, 2007.

III.

    Accordingly, pursuant to Sections 161b, 161i, 161o and 184 of the 
Act, 42 U.S.C. Sections 2201(b), 2201(i), 2201(o) and 2234; and 10 CFR 
50.80, It is hereby ordered that the transfer of the licenses, as 
described herein, to FPLE Point Beach is approved, subject to the 
following conditions:
    (1) At the time of the closing of the transfer of the licenses from 
Wisconsin Electric Power Company (WEPCO) to FPLE Point Beach, WEPCO 
shall transfer to FPLE Point Beach WEPCO's decommissioning funds in an 
aggregate minimum value of $200.8 million for Point Beach, Unit 1 and 
$189.2 million for Point Beach, Unit 2. FPLE Point Beach shall deposit 
such funds in an external decommissioning trust fund established by 
FPLE Point Beach for Point Beach Units 1 and 2. The trust agreement 
shall be in a form acceptable to the NRC.

[[Page 43670]]

    (2) FPLE Point Beach shall take no actions to cause FPLE Group 
Capital, or its successors and assigns, to void, cancel, or modify its 
$70 million Support Agreement (Agreement) to FPLE Point Beach, as 
presented in the application, or cause it to fail to perform or impair 
its performance under the Agreement, without prior written consent from 
the NRC. The Agreement may not be amended or modified without 30 days 
prior written notice to the Director of the Office of Nuclear Reactor 
Regulation or his designee. An executed copy of the Agreement shall be 
submitted to the NRC no later than 30 days after the completion of the 
license transfers. Also, FPLE Point Beach shall inform the NRC in 
writing anytime it draws upon the $70 million Agreement.
    (3) Prior to completion of the transfer of any authority under the 
licenses, FPLE Point Beach 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 a licensee 
under 10 CFR Part 140 of the Commission's regulations.
    It is further ordered that FPLE Point Beach shall inform the 
Director of the Office of Nuclear Reactor Regulation in writing if it 
wishes to exercise the option to transfer the operating authority prior 
to closing of the sale no later than 5 business days prior to the 
desired date for transfer of operational authority. Should FPLE Point 
Beach not request to exercise the option to transfer operational 
authority prior to closing of the sale, then the associated amendments 
to transfer operational authority will be null and void and only the 
amendments reflecting transfer of both ownership and operating 
authority will remain approved.
    It is further ordered that FPLE Point Beach shall inform the 
Director of the Office of Nuclear Reactor Regulation in writing of the 
date of the closing of the sale no later than 5 business days prior to 
the closing of the sale and transfer of licenses. Should the transfer 
of the licenses not be completed by July 31, 2008, 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.
    It is further ordered that, consistent with 10 CFR 2.1315(b), the 
license amendments, indicated in Enclosures 2 or 3 to the cover letter 
forwarding this Order, that make the applicable changes to conform the 
licenses to reflect the subject license transfers are approved. The 
applicable amendments for transfer of ownership and operational 
authority shall be issued and made effective at the time such proposed 
license transfers are completed in full. The applicable amendments for 
the option of first transferring operational authority shall be issued 
and made effective at the time such transfer closes.
    This Order is effective upon issuance.
    For further details with respect to this Order, see the initial 
application dated January 26, 2007, as supplemented by letter dated 
July 11, 2007, and the non-proprietary safety evaluation dated July 31, 
2007, which is 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 31st day of July 2007.

    For the Nuclear Regulatory Commission.
J. E. Dyer,
Director, Office of Nuclear Reactor Regulation.
[FR Doc. E7-15192 Filed 8-3-07; 8:45 am]
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