ML021720592

Termination of Review of Application for Orders and Conforming License Amendments for License Transfers Related to Corporate Restructuring

ML021720592
Person / Time
Site:	Millstone
Issue date:	07/09/2002
From:	Richard Ennis NRC/NRR/DLPM/LPD1
To:	Price J, Danni Smith Dominion Nuclear Connecticut
Ennis R, NRR/DLPM, 415-1420
References
TAC MB2850, TAC MB2851, TAC MB2852
Download: ML021720592 (6)

Text

July 9, 2002 Mr. J. A. Price Vice President - Nuclear Technical Services - Millstone Dominion Nuclear Connecticut, Inc.

c/o Mr. David A. Smith Rope Ferry Road Waterford, CT 06385

SUBJECT:

MILLSTONE NUCLEAR POWER STATION, UNIT NOS. 1, 2, AND 3 -

SUSPENSION OF REVIEW OF APPLICATION FOR ORDER APPROVING IN-DIRECT LICENSE TRANSFERS RELATED TO CORPORATE RESTRUCTURING (TAC NOS. MB2850, MB2851, AND MB2852)

Dear Mr. Price:

By letters dated August 17 and November 26, 2001, you applied for an order consenting to the indirect transfer of the Facility Operating Licenses for Millstone Nuclear Power Station, Unit Nos. 1, 2, and 3 (Millstone) to the extent held by Dominion Nuclear Connecticut, Inc. (DNC).

The indirect transfer would result from the establishment of an intermediary parent company that would own DNC. As noted in your letters, the proposed corporate restructuring was being planned in connection with related license transfer requests from Virginia Electric & Power Company (VEPCO) for the North Anna and Surry Power Stations made in order to comply with electric industry restructuring laws in the Commonwealth of Virginia.

In your letter dated August 17, 2001, DNC requested that the Nuclear Regulatory Commission (NRC) staff complete its review and issue a consenting order for the indirect transfer of the Millstone licenses by November 30, 2001. This schedule coincided with the schedule requested for the North Anna and Surry license transfers, which in turn was based on the requirement in the Virginia Electric Utility Restructuring Act that the Virginia State Corporation Commission (SCC) direct the functional separation of generation, retail transmission, and distribution on incumbent electric utilities in Virginia to be completed by January 1, 2002.

However, your letter dated November 26, 2001, requested that the NRC staff delay its consent to the indirect transfer of the Millstone licenses. This request was made to allow the SCC to issue a decision on VEPCOs proposed corporate restructuring before NRC action on the license transfer application. The letter stated that a revised request date for issuance of an order would be provided by VEPCO by January 31, 2002.

In a letter to the NRC dated January 30, 2002, VEPCO notified the staff that on December 18, 2001, the SCC issued an Order that denied VEPCOs request to transfer its generation assets to an affiliate company as proposed. However, certain issues remain open with the SCC notwithstanding its Order, although it is unclear at this time how and when the issues with the SCC will be resolved or whether changes to DNCs license transfer request for Millstone will be necessary as a result.

J. Price Due to the foregoing uncertainties, the NRC staff review of the Millstone license transfer request is being held in abeyance pending the resolution of issues before the SCC and/or modifications or adjustments to the transfer application. Accordingly, the staff has decided to close out TAC Nos. MB2850, MB2851, and MB2852.

Sincerely,

/RA/

Richard B. Ennis, Senior Project Manager, Section 2 Project Directorate I Division of Licensing Project Management Office of Nuclear Reactor Regulation Docket Nos. 50-245, 50-336, and 50-423 cc: See next page

ML021720592 *see previous concurrence OFFICE PDI-2/PM PDI-2/PM* PDI-2/PM* PDI-2/LA OGC* PDI-2/SC NAME REnnis VNerses JHickman TClark SHom JZimmerman for JClifford DATE 7/8/02 6-24-02 6-24-02 7/8/02 7-3-02 7/9/02 Millstone Nuclear Power Station Units 1, 2, and 3 cc:

Ms. L. M. Cuoco Mr. P. J. Parulis Senior Nuclear Counsel Manager - Nuclear Oversight Dominion Nuclear Connecticut, Inc. Dominion Nuclear Connecticut, Inc.

Rope Ferry Road Rope Ferry Road Waterford, CT 06385 Waterford, CT 06385 Edward L. Wilds, Jr., Ph.D. Ernest C. Hadley, Esq.

Director, Division of Radiation P. O. Box 1104 Department of Environmental West Falmouth, MA 02574-1104 Protection 79 Elm Street Mr. John Markowicz Hartford, CT 06106-5127 Co-Chair Nuclear Energy Advisory Council Regional Administrator, Region I 9 Susan Terrace U.S. Nuclear Regulatory Commission Waterford, CT 06385 475 Allendale Road King of Prussia, PA 19406 Mr. C. J. Schwarz Director - Nuclear Station Operations First Selectmen and Maintenance Town of Waterford Dominion Nuclear Connecticut, Inc.

15 Rope Ferry Road Rope Ferry Road Waterford, CT 06385 Waterford, CT 06385 Mr. W. R. Matthews Mr. D. A. Smith Vice President and Senior Manager -Licensing Nuclear Executive - Millstone Dominion Nuclear Connecticut, Inc.

Dominion Nuclear Connecticut, Inc. Rope Ferry Road Rope Ferry Road Waterford, CT 06385 Waterford, CT 06385 Ms. Nancy Burton Mr. Charles Brinkman, Manager 147 Cross Highway Washington Nuclear Operations Redding Ridge, CT 00870 ABB Combustion Engineering 12300 Twinbrook Pkwy, Suite 330 Mr. D. J. Meekhoff Rockville, MD 20852 Unit 1 General Manager Dominion Nuclear Connecticut, Inc.

Senior Resident Inspector Rope Ferry Road Millstone Nuclear Power Station Waterford, CT 06385 c/o U.S. Nuclear Regulatory Commission P. O. Box 513 Niantic, CT 06357

Millstone Nuclear Power Station Mr. M. J. Wilson Units 1, 2, and 3 Manager - Nuclear Training Dominion Nuclear Connecticut, Inc.

cc: Rope Ferry Road Mr. G. D. Hicks Director - Nuclear Station Safety and Licensing Dominion Nuclear Connecticut, Inc.

Rope Ferry Road Waterford, CT 06385 Mr. Evan W. Woollacott Co-Chair Nuclear Energy Advisory Council 128 Terrys Plain Road Simsbury, CT 06070 Mr. D. A. Christian Senior Vice President - Nuclear Operations and Chief Nuclear Officer Innsbrook Technical Center - 2SW 5000 Dominion Boulevard Glen Allen, VA 23060 Mr. William D. Meinert Nuclear Engineer Massachusetts Municipal Wholesale Electric Company P.O. Box 426 Ludlow, MA 01056 Attorney Nicholas J. Scobbo, Jr.

Ferriter, Scobbo, Caruso, Rodophele, PC 75 State Street, 7th Floor Boston, MA 02108-1807 Mr. J. Alan Price Site Vice President - Millstone c/o Mr. David A. Smith Dominion Nuclear Connecticut, Inc.

Rope Ferry Road Waterford, CT 06385 Mr. S. E. Scace Director - Nuclear Engineering Dominion Nuclear Connecticut, Inc.

Rope Ferry Road Waterford, CT 06385