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Category:Letter type:L
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2024-01-24
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Text
Perry Nuclear Power Plant.
PO. Box 97 Road
_"-ftft10 Center FirstEnergyNuclear OperatingCompany Perr Ohio 44081 ErnestJ. Harkness 440-280-5382 Vice President Fax: 440-280-8029 November 18, 2014 L-14-369 Attention: Document Control Desk U.S. Nuclear Regulatory Commission Washington, DC 20555-0001
SUBJECT:
Perry Nuclear Power Plant, Unit No. 1.
Docket No. 50-440, License No. NPF-58 Notice Regarding Acquisition of Leased Interests by FirstEnergy Nuclear Generation, LLC FirstEnergy Nuclear Operating Company (FENOC), acting as the agent for and on behalf of FirstEnergy Nuclear Generation, LLC (FENGen) and Ohio Edison Company (OE), hereby notifies the Nuclear Regulatory Commission (NRC) of a planned acquisition by FENGen of certain owner participant interests in Perry Nuclear Power Plant Unit, No. 1 (PNPP) that are held pursuant to various sale and leaseback arrangements authorized by the PNPP Operating License. Under the NRC-authorized arrangements, these interests are currently owned by certain investors as owner participants and leased to OE, which is the NRC licensee for these interests in PNPP.
FENGen will increase its stake in the owner participant interests. FENGen will continue to be an owner participant under the existing lease arrangements, and OE will continue to lease the plant and will remain as the licensee for the affected leased interests in PNPP.
Pursuant to License Condition 2.B.(7)(a) of the PNPP license, OE was authorized in 1987 to transfer ownership interests in PNPP to investors pursuant to sale and leaseback transactions and subject to the requirements of NRC's creditor regulations at 10 CFR 50.81. OE currently retains a 12.58% licensed interest in PNPP, pursuant to sale and leaseback arrangements whereby this 12.58% interest in PNPP is owned by various investor owner participants and leased to OE. FENGen is the owner of the remaining 87.42% interest in PNPP. License Condition 2.B.(7)(b) of the PNPP license requires that the licensees "notify the NRC in writing prior to any change ... the term or conditions of any lease agreements."
Perry Nuclear Power Plant, Unit No. 1 L-14-369 Page 2 FENGen plans to acquire owner participant interests in PNPP from Perry One Beta Limited Partnershipand Perry One Gamma Limited Partnership. The acquisitions are anticipated to be completed by the end of November 2014. Additionally, FENGen has recently entered into a binding agreement to acquire the owner participant interest in PNPP from Perry One Delta Limited Partnershipin May 2016. FENGen will assume these ownership interests subject to the terms and conditions of the lease agreements with the current third party owner participants. The FENGen owner participant interests will continue to be held in. trust, along with the other third party owner participant interests and leased to OE.
OE will continue to exercise control and retain responsibility for its 12.58% leased interest in PNPP. It is anticipated that the lease. agreemehts will terminate at the end of the lease term in May 2016. It is also anticipated that FENGen, as the owner participant, will assume control over these leased interests at lease termination. As required for any owner participant to assume control of the leased interests, FENGen will seek and obtain the prior written consent of the NRC in accordance with 10 CFR 50.80, before exercising any control over the leased interests that it holds initially as an owner participant under the sale and leaseback arrangements. Thus, at the end of the leases, these interests would transfer to FENGen, and FENGen ultimately will replace OE as the owner for the 12.58% interests in PNPP, eventually becoming the 100% owner of PNPP. One or more license amendments will also need to be processed in order to reflect FENGen's acquisition of the licensed interests in PNPP.
There are no regulatory commitments contained in this letter. If there are any questions or if additional information is required, please contact Mr. Thomas A. Lentz, Manager, Fleet Licensing, at 330-315-6810.
Sincerely, Ernest J. Harkness cc: NRC Director, Office of Nuclear Reactor Regulation NRC Region III Administrator NRR Project Manager NRC Resident Inspector
