[Federal Register Volume 72, Number 178 (Friday, September 14, 2007)]
[Notices]
[Pages 52584-52585]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: E7-18142]


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NUCLEAR REGULATORY COMMISSION

[Docket Nos. 50-445 and 50-446; License Nos. NPF-87 and NPF-89]


In the Matter of: Txu Generation Company LP (Comanche Peak Steam 
Electric Station, Units 1 and 2); Order Approving Indirect Transfer of 
Facility Operating Licenses and Conforming Amendments

I

    TXU Generation Company LP is the holder of Facility Operating 
Licenses numbered NPF-87 and NPF-89, which authorize operation of 
Comanche Peak Steam Electric Station, Units 1 and 2 (CPSES). The 
facilities are located at the licensee's site in Somervell County, 
Texas. The Operating Licenses authorize TXU Generation Company LP to 
possess, use and operate CPSES.

II

    By application dated April 18, 2007, as supplemented by letter 
dated July 20, 2007, TXU Generation Company LP (TXU Power), acting on 
behalf of Texas Energy Future Holdings Limited Partnership (Texas 
Energy LP) and itself, requested that the U.S. Nuclear Regulatory 
Commission (NRC), pursuant to Section 50.80 of Title 10 of the Code of 
Federal Regulations (10 CFR), consent to the proposed indirect transfer 
of control of TXU Power's licenses to possess, use, and operate CPSES. 
TXU Corp., which indirectly owns 100 percent of TXU Power, and Texas 
Energy LP have entered into an agreement for Texas Energy LP to acquire 
all of the outstanding equity of TXU Corp. As part of the transaction, 
a new company, Luminant Holdco, will be established as an intermediate 
parent of TXU Power and indirect subsidiary of TXU Corp. At the time of 
the acquisition, TXU Power will be converted from a limited partnership 
to a limited liability company, but will continue in existence through 
the conversion and will continue to hold the licenses. Thus, there will 
be no direct transfer of the licenses. The application also states that 
TXU Power, i.e., TXU Generation Company LP, will be renamed as Luminant 
Generation Company LLC. Therefore, pursuant to 10 CFR 50.90, TXU Power 
also requested approval of conforming license amendments to the CPSES, 
Unit 1 Operating License (NPF-87) and CPSES, Unit 2 Operating License 
(NPF-89) to reflect the name change from TXU Generation Company LP to 
Luminant Generation Company LLC.
    Under the name of Luminant Generation Company LLC, TXU Power will 
continue to own and operate CPSES. Through the acquisition of TXU Corp. 
by Texas Energy LP, TXU Power will become part of an enterprise 
controlled and held by private equity investors.
    Notice of the requests for approval and an opportunity for a 
hearing was published in the Federal Register on June 13, 2007 (72 FR 
32685). No comments or hearing requests were received.
    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 as 
supplemented and other information before the Commission, and relying 
upon the representations and agreements in the application as 
supplemented, the NRC staff concludes that the proposed indirect 
transfer of control of TXU Power as described herein will not affect 
the qualifications of TXU Power as holder of the CPSES licenses, and 
that the indirect transfer of control of the licenses, to the extent 
effected by the proposed transaction described in the application, is 
otherwise consistent with the applicable provisions of laws, 
regulations, and orders issued by the NRC pursuant thereto, subject to 
the conditions described herein.
    The findings set forth above are supported by a safety evaluation 
dated September 10, 2007.

III

    Accordingly, pursuant to Sections 161b, 161i, 161o, and 184 of the 
Atomic Energy Act of 1954, as amended, 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 related to the 
proposed acquisition is approved, subject to the following conditions:
    (1) TXU Power shall enter into the $250 million support agreement 
with Luminant Investment Company LLC, as described in the application, 
no later than the time the proposed transactions and indirect license 
transfers occur. TXU Power, whether or not converted to a limited 
liability company and/or renamed, shall take no action to cause 
Luminant Investment Company LLC, or its successors and assigns, to 
void, cancel, or modify the support agreement or cause it to fail to 
perform, or impair its performance under the support agreement, without 
the prior written consent of the NRC. The support 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 support agreement shall be submitted to the NRC 
no later than 30 days after the completion of the proposed transactions 
and the indirect license transfers. TXU Power, whether or not converted 
to a limited liability company and/or renamed, shall inform the NRC in 
writing anytime it draws upon the support agreement.
    (2) Following the subject indirect transfer of control of the 
licenses, all of the officers of the general partner or controlling 
member of the licensee of CPSES shall be U.S. citizens. This condition 
may be amended upon application by the licensee and approval by the 
Director of the Office of Nuclear Reactor Regulation.
    It is further ordered that, consistent with 10 CFR 2.1315(b), 
license amendments that make changes, as indicated in Enclosure 2 to 
the cover letter forwarding this Order, to conform the licenses to 
reflect the change in the name of the licensee occurring in connection 
with the proposed acquisition of TXU Corp., and to reflect certain 
conditions of this order, are approved. The amendments shall be issued 
and made effective at the time the proposed acquisition and name change 
are completed.
    It is further ordered that TXU Power shall inform the Director of 
the Office of Nuclear Reactor Regulation in writing of the date of the 
closing of the acquisition of TXU Corp., establishment of

[[Page 52585]]

Luminant Holdco, and change in name of TXU Power no later than 5 
business days prior to such actions. Should the indirect transfer of 
control of TXU Power not be completed by July 10, 2008, this Order 
shall become null and void, provided, however, upon written application 
and good cause shown, such date may be extended by order.
    This Order is effective upon issuance.
    For further details with respect to this Order, see the application 
dated April 18, 2007, and supplemental letter dated July 20, 2007, and 
the safety evaluation dated 2007, 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 10th day of September, 2007.

    For the Nuclear Regulatory Commission.
Catherine Haney,
Director, Division of Operating Reactor Licensing, Office of Nuclear 
Reactor Regulation.
[FR Doc. E7-18142 Filed 9-13-07; 8:45 am]
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