ML031830527
| ML031830527 | |
| Person / Time | |
|---|---|
| Site: | Diablo Canyon  |
| Issue date: | 06/24/2003 |
| From: | Repka D Pacific Gas & Electric Co, Winston & Strawn |
| To: | Bollwerk G, Kline J, Lam P Atomic Safety and Licensing Board Panel |
| Byrdsong A T | |
| References | |
| +adjud/rulemjr200506, +sispmjr200505, -RFPFR, 72-26-ISFSI, RAS 6583 | |
| Download: ML031830527 (5) | |
Text
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P606 313-015-1700 41"-91-1000 331-13-53443-0 43Mmg w b 1 30 4 0, 4 0 8 01 1 0 9 6 dl 1-31-317675-75 June 24 DOCKETED USNRC July 1, 2003 (2:22PM) 4, 2003 OFFICE OF SECRETARY RULEMAKINGS AND ADJUDICATIONS STAFF Administrative Judge Peter S. Lam Atomic Safety and Licensing Board Panel U.S. Nuclear Regulatory Commission Mail Stop T-3F23 Washington, DC 20555-0001 Administrative Judge G. Paul Bollwerk, III Chairman Atomic Safety and Licensing Board Panel U.S. Nuclear Regulatory Commission Mail Stop T-3F23 Washington, DC 20555-00001 Administrative Judge Jerry R. Kline Atomic Safety and Licensing Board Panel U.S. Nuclear Regulatory Commission Mail Stop T-3F23 Washington, DC 20555-0001 Re:
Pacific Gas and Electric Company (Diablo Canyon Power Plant Independent Spent Fuel Storage Installation)
Docket No. 72-26-ISFSI
Dear Administrative Judges:
The issue raised in Contention TC-2 and still pending in this case concerns the financial qualifications of Pacific Gas and Electric Company ("PG&E"), the current rate-regulated electric utility applicant, to construct, operate, and decommission the proposed Independent Spent Fuel Storage Installation ("ISFSI") at the Diablo Canyon Power Plant
("DCPP") pending the resolution of PG&E's bankruptcy case. While the ultimate resolution of the bankruptcy case and financial qualifications post-bankruptcy are beyond the current scope of the contention, the following is provided in the interest of keeping the Atomic Safety and Licensing Board ("Licensing Board") informed of developments with respect to the pending bankruptcy case.
As the Licensing Board is aware, on November 30, 2001, PG&E filed an application (the "Application") with the Commission requesting approval of the transfer of the NRC operating licenses for DCPP to Electric Generation, LLC ("Gen") and Diablo Canyon LLC
("Nuclear"). The Application specifically sought approval of transfers necessitated by certain TEmPL.ATE=sEcy-64 3SCY0 SECY-02
Administrative Judges June 24, 2003 Page 2 transactions contemplated by the Plan of Reorganization for PG&E filed by PG&E and its parent, PG&E Corporation ("PG&E Plan"), and pending in the Bankruptcy Court for the Northern District of California ("Bankruptcy Court").
In an order dated May 27, 2003
("Order"), the NRC Staff approved the transfer of the operating licenses to Gen and Nuclear.'
Although the Order is "effective upon issuance," it also conditions transfer of the DCPP operating licenses on satisfaction of seven separate conditions. 68 Fed. Reg. at 33,209.
Pursuant to settlement procedures implemented by the Bankruptcy Court,2 PG&E, PG&E Corporation, and the staff of the California Public Utilities Commission ("CPUC") on June 20, 2003, announced a proposed settlement of the PG&E bankruptcy case (the "Settlement Agreement").
The Settlement Agreement provides that PG&E will seek Bankruptcy Court approval of a plan of reorganization ("Settlement Plan") in place of the PG&E Plan and the competing plan previously proposed by the CPUC and the Official Committee of Unsecured Creditors. PG&E does not anticipate that NRC approval will be required to implement the Settlement Plan. Under the Settlement Plan, PG&E will remain the licensee for DCPP and the proposed ISFSI, and will remain a vertically integrated utility subject to CPUC rate regulation.
The Settlement Agreement has not yet been executed. The Settlement Agreement provides that it will become binding only upon its approval by the board of directors of PG&E, PG&E's parent, and the CPUC, and upon its execution by PG&E, PG&E's parent, and the CPUC on or before December 31, 2003. The Settlement Plan will not be implemented until various conditions are met; these include, among other things, CPUC approval of the Settlement Agreement, CPUC approval of all rates, tariffs and agreements necessary to implement the Settlement Plan, PG&E's receipt of company credit ratings of "Investment Grade" from Standard & Poor's and Moody's Investors Service, Inc., and Bankruptcy Court confirmation of the Settlement Plan.
See Pacific Gas and Electric Company (Diablo Canyon Nuclear Power Plant, Units 1 and 2); Order Approving Transfer of Licenses and Conforming Amendments, 68 Fed. Reg.
33,208 (June 3, 2003).
2 The Bankruptcy Court issued a series of orders, beginning on March 11, 2003, staying the hearings in the bankruptcy case to provide time for settlement discussions, under the supervision of a settlement judge, among PG&E, PG&E Corporation, the Attorney General of California, the CPUC, the Official Committee of Unsecured Creditors
("OCC"), and other parties. On June 20, 2003, the Bankruptcy Court issued an order staying, until further order of the Bankruptcy Court, further proceedings on the PG&E Plan and the competing plan proposed by the CPUC and OCC to allow proceedings on the settlement to go forward.
2
Administrative Judges June 24, 2003 Page 3 PG&E will notify the Licensing Board promptly in the event of other developments in the bankruptcy case that may affect this proceeding or may be of interest to the Licensing Board and parties.
Respectfully submitted, David A. Repka Counsel for Pacific Gas and Electric Company cc:
Service List (attached) 3
SERVICE LIST Administrative Judge G. Paul Bollwerk, III Chairman Atomic Safety and Licensing Board Panel U.S. Nuclear Regulatory Commission Mail Stop T-3F23 Washington, DC 20555-0001 e-mail: gpbgnrc.gov Administrative Judge Jerry R. Kline Atomic Safety and Licensing Board Panel U.S. Nuclear Regulatory Commission Mail Stop T-3F23 Washington, DC 20555-0001 e-mail: jrk2@nrc.gov kjerry(comcast.net Office of the Secretary U.S. Nuclear Regulatory Commission Washington, DC 20555-0001 Attn: Rulemakings and Adjudications Staff (original + two copies) e-mail: HEARINGDOCKET(nrc.gov Lorraine Kitman P.O. Box 1026 Grover Beach, CA 93483 e-mail: lorraine~bejoseeds.com l.kitman(bejoseeds.com Robert K. Temple, Esq.
2524 N. Maplewood Avenue Chicago, IL 60647 e-mail: nuclawemindspring.com Administrative Judge Peter S. Lam Atomic Safety and Licensing Board Panel U.S. Nuclear Regulatory Commission Mail Stop T-3F23 Washington, DC 20555-0001 e-mail: pslenrc.gov Office of Commission Appellate Adjudication U.S. Nuclear Regulatory Commission Mail Stop 0-16C1 Washington, DC 20555-0001 Diane Curran, Esq.
Harmon, Curran, Spielberg & Eisenberg, LLP 1726 M Street N.W., Suite 600 Washington, DC 20036 e-mail: dcurrangharmoncurran.com Karen D. Cyr, Esq.
Stephen H. Lewis, Esq.
Angela B. Coggins, Esq.
Office of the General Counsel U.S. Nuclear Regulatory Commission Mail Stop 0-15D21 Washington, DC 20555-0001 e-mail: OGCMailCentergnrc.gov shlgnrc.gov abclnrc.gov Peg Pinard 714 Buchanan Street San Luis Obispo, CA 93401 1
Klaus Schumann Mary Jane Adams 26 Hillcrest Drive Paso Robles, CA 93446 James B. Lindholm, Jr., Esq.
County Counsel for San Luis Obispo County County Government Center 1050 Monterey Avenue, Room 386 San Luis Obispo, CA 93408 e-mail: jlindholmhco.slo.ca.us San Luis Obispo Mothers for Peace P.O. Box 164 Pismo Beach, CA 93448 e-mail: beckers(thegrid.net jzkgcharter.net Darcie L. Houck, Staff Counsel California Energy Commission Chief Counsel's Office 1516 Ninth Street, MS 14 Sacramento, CA 95814 e-mail: Dhouck~energy.state.ca.us Christopher Helenius, President Avila Beach Community Services District P.O. Box 309 Avila Beach, CA 93424 e-mail: AVILACSD@aol.com Laurence G. Chaset Legal Division California Public Utilities Commission 505 Van Ness Avenue San Francisco, CA 94102 e-mail: lauecpuc.ca.gov Karla Bittner, Chair Ted Ivarie, Vice Chair Marylou Gooden, Secretary Avila Valley Advisory Council P.O. Box 65 Avila Beach, CA 93424 e-mail: kdbittgcharter.net Barbara Byron Nuclear Policy Advisor California Energy Commission 1516 Ninth Street, MS 36 Sacramento, CA 95814 e-mail: Bbyron~energy.state.ca.us Robert R. Wellington, Esq.
Robert W. Rathie, Esq.
Wellington Law Offices 857 Cass Street, Suite D Monterey, CA 93940 e-mail: infoedcisc.org Sheldon L. Trubatch, Esq.
4222 River Road Washington, DC 20016 e-mail:
lawofficesofsheldontrubatchlstarpower.net 2
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