ML041130420

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Pacific Gas and Electric Companys Motion to Terminate Proceeding
ML041130420
Person / Time
Site: Diablo Canyon  
Issue date: 04/13/2004
From: Repka D
Pacific Gas & Electric Co, Winston & Strawn, LLP
To:
NRC/OCM
Byrdsong A T
References
+adjud/rulemjr200506, 50-275-LT, 50-323-LT, RAS 7628
Download: ML041130420 (9)


Text

'"WA S 7bL UNITED STATES OF AMERICA NUCLEAR REGULATORY COMMISSION BEFORE THE COMMISSION April 13, 2004 DOCKETED USNRC April 20, 2004 (4:06PM)

OFFICE OF SECRETARY RULEMAKINGS AND In the Matter of:

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ADJUDICATIONS S Pacific Gas and Electric Co.

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Docket Nos. 50-275-LT

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50-323-LT (Diablo Canyon Power Plant,

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Units I and 2)

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PACIFIC GAS AND ELECTRIC COMPANY'S MOTION TO TERMINATE PROCEEDING On November 30, 2001, Pacific Gas and Electric Company ("PG&F') filed an application with the Nuclear Regulatory Commission ("NRC" or "Commission") requesting approval of the transfer of the operating licenses for Diablo Canyon Power Plant ("DCPP"). The application was associated with PG&E's then-pending Plan of Reorganization ("PG&E Plan") to emerge from bankruptcy.

Following completion of a contested proceeding before the Commission on the application,' the NRC Staff approved the proposed transfers by Order dated May 27, 2003.2 TAFF On June 24, 2003, the California Public Utilities Commission ("CPUC") and San Luis Obispo County (the "County") requested that the Commission stay the effect of the Commission Order approving the license transfers.

PG&E opposed the stay request, and, See Pac. Gas & Elec. Co. (Diablo Canyon Power Plant, Units 1 & 2), CLI-02-16, 55 NRC 317 (2002), appeal docketed, No. 02-72735 (9th Cir. Aug. 23, 2002); See Pac. Gas

& Elec. Co. (Diablo Canyon Power Plant, Units I & 2), CLI-03-2, 57 NRC 19 (2003),

appeal docketed, No. 03-1038 (D.C. Cir. Feb. 25, 2003).

2 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) ("Order").

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subsequently, filed a motion to hold the remaining aspects of this proceeding (i.e., a ruling on the stay request) in abeyance in light of the tentative settlement of PG&E's bankruptcy proceeding based on a settlement plan of reorganization for PG&E. The settlement plan does not involve or require the restructuring of the company and license transfers addressed in the NRC's May 27, 2003 Order. In CLI-03-10, the Commission granted PG&E's motion to hold the remaining aspects of the proceeding in abeyance. See Pac. Gas & Elec. Co. (Diablo Canyon Power Plant, Units 1 & 2), CLI-03-10, 58 NRC 127 (2003). At that time, the Commission directed PG&E to notify it immediately upon final approval or rejection of the tentative settlement agreement.

On December 24, 2003, PG&E notified the Commission that the Bankruptcy Court had approved the settlement plan on December 22, 2003. As discussed in a letter to the NRC dated April 12, 2004 (appended hereto as an attachment), all conditions precedent necessary for implementation of the settlement agreement have now been met. As of April 12, 2004, the approved settlement plan has been implemented and PG&E has emerged from bankruptcy as a vertically integrated utility, subject to the traditional ratemaking jurisdiction of the CPUC. Implementation of the settlement plan has eliminated the need for the NRC license transfers at issue in this matter. Accordingly, PG&E does not intend to implement the transfers approved by the NRC in the May 27, 2003 Order and will allow that Order to expire.

2

Given the implementation of the settlement plan, this proceeding has become moot.

Counsel for the CPUC and the County have indicated that they do not object to termination of this proceeding.

Respectfully submitted, David A. Repka, Esq.

WINSTON & STRAWN LLP 1400 L Street, N.W.

Washington, DC 20005-3502 (202) 371-5700 William V. Manheim, Esq.

Richard F. Locke, Esq.

PACIFIC GAS & ELECTRIC COMPANY 77 Beale Street, B30A San Francisco, CA 94105 ATTORNEYS FOR PACIFIC GAS AND ELECTRIC COMPANY Dated in Washington, District of Columbia This 13th day of April 2004

W Pacific Gas and Electric Company.

Gregory M. Rueger US Mail:

Senior Vice President-Mail Code 832 Generation and Pacific Gas and Electric Company Chief Nuclear Officer PO Box 770000 April 12, 2004 San Francisco, CA 94177-0001 OvernightfMal:

Mail Code B32 PG&E Letter DCL-04-043 Pacific Gas and Electric Company 77 Beale Street. 32nd Floor San Francisco. CA 94105-1814 U.S. Nuclear Regulatory Commission 415.973.684 ATTN: Document Control Desk Fax: 415.973.2313 Washington, DC 20555-0001 Docket No. 50-275, OL-DPR-80 Docket No. 50-323, OL-DPR-82 Diablo Canyon Units 1 and 2 Notification of Bankruptcy Settlement

Dear Commissioners and Staff:

In an Order dated May 27, 2003, the Nuclear Regulatory Commission (NRC) approved the transfer of the Diablo Canyon Power Plant operating licenses to Electric Generation, LLC and Diablo Canyon, LLC.1 The transfers approved by the NRC were proposed in connection with a Plan of Reorganization for Pacific Gas and Electric Company (PG&E) filed by PG&E and its parent, PG&E Corporation, then pending in the Bankruptcy Court for the Northern District of California ("Bankruptcy Court"). Pursuant to settlement procedures implemented by the Bankruptcy Court in that proceeding, PG&E, PG&E Corporation, and the staff of the California Public Utilities Commission (CPUC) in June 2003 announced a proposed settlement of the bankruptcy case (the "Settlement Agreement"). Pursuant to the Settlement Agreement, a new plan of reorganization for PG&E (the "Settlement Plan") was filed with the Bankruptcy Court and confirmed in December 2003. The confirmed Settlement Plan does not involve the restructuring or license transfers addressed in the May 27, 2003 NRC Order.

As of April 12, 2004, the Settlement Plan has been implemented and PG&E has emerged from bankruptcy. PG&E remains a vertically integrated electric utility subject to the traditional ratemaking jurisdiction of the CPUC. The NRC's transfer Order by its terms will become null and void if the transfers are not completed by May 31, 2004. PG&E hereby notifies the Commission that it does not intend to complete the transfers in conformance with the Order and will allow the Order to expire.

If you have any questions regarding the Settlement Agreement, please contact me.

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).

A member of the STARS (Strategic Teaming and Resource Sharing) Alliance Callaway

  • Comanche Peak
  • Diablo Canyon
  • Palo Verde
  • Wolf Creek

U.S. Nuclear Regulatory Commission April 12, 2004 Page 2 PG&E Letter DCL-04-043 Sin

rely, GregoM. Rueger cc:

Edgar Bailey, DHS Bruce S. Mallett, NRC Region IV David L. Proulx, NRC Senior Resident Inspector Girija S. Shukla, NRC Diablo Distribution A member of the STARS (Strategic Teaming and Resource Sharing) Alliance Callaway

  • Comanche Peak
  • Diablo Canyon
  • Palo Verde
  • Wolf Creek

UNITED STATES OF AMERICA NUCLEAR REGULATORY COMMISSION BEFORE THE COMMISSION In the Matter of:

Pacific Gas and Electric Co.

(Diablo Canyon Power Plant, Units I and 2)

)

))

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Docket Nos. 50-275-LT 50-323-LT CERTIFICATE OF SERVICE I hereby certify that copies of "PACIFIC GAS AND ELECTRIC COMPANY'S MOTION TO TERMINATE PROCEEDING" in the above captioned proceedings has been served as shown below by electronic mail, this 13th day of April 2004. Additional service by deposit in the United States mail, first class, has also been made this same day as shown below.

Nils J. Diaz, Chairman U.S. Nuclear Regulatory Commission Washington, DC 20555-0001 Jeffrey S. Merrifield, Commissioner U.S. Nuclear Regulatory Commission Washington, DC 20555-0001 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 Robert K. Temple, Esq.

2524 N. Maplewood Avenue Chicago, IL 60647 nuclaw~mindspring.com Edward McGaffigan, Commissioner U.S. Nuclear Regulatory Commission Washington, DC 20555-0001 James B. Lindholm, Jr.

County Counsel for the County of San Luis Obispo County Government Center, Rm 386 San Luis Obispo, CA 93408 jlindholmeco.slo.ca.us Office of Commission Appellate Adjudication U.S. Nuclear Regulatory Commission Washington, DC 20555-0001 Lawrence J. Chandler, Esq.

Office of the General Counsel U.S. Nuclear Regulatory Commission Washington, DC 20555-0001 e-mail: ogclt(nrc.gov ljc~nrc.gov 1

Laurence G. Chaset Public Utilities Commission of the State of California 505 Van Ness Avenue, Room 5131 San Francisco, CA 94102 e-mail: lau(cpuc.ca.gov Gregory Heiden Public Utilities Commission of the State of California 505 Van Ness Avenue, Room 5024 San Francisco, CA 94102 e-mail: gxh(cpuc.ca.gov George A. Fraser, General Manager Northern California Power Agency 180 Cirby Way Roseville, CA 95678 e-mail: george(ncpa.com Steven M. Kramer Carla J. Urquhart Milbank, Tweed, Hadley & McCloy LLP 1825 I Street, N.W., Suite 1100 Washington, DC 20006 e-mail: skramer(milbank.com curquhart(milbank.com David Effross Pubic Utilities Commission of the State of California 505 Van Ness Avenue, 4th Floor San Francisco, CA 94102 e-mail: dre(cpuc.ca.gov Robert C. McDiarmid Ben Finkelstein Lisa G. Dowden Meg Meiser Tracy E. Connor Spiegel & McDiarmid 1350 New York Avenue, N.W.

Washington, DC 20005-4798 e-mail: robert.mcdiarmid(spiegelmcd.com ben.finkelstein(spiegelmcd.com lisa.dowden~spiegelmcd.com meg.meiser(spiegelmcd.com tracy.connorespiegelmcd.com Edwin F. Feo Milbank, Tweed, Hadley & McCloy LLP 601 South Figueroa Street, 30th Floor Los Angeles, CA 90017 e-mail: efeo~milbank.com James H. Pope, Chairman Maury A. Kruth, Executive Director Transmission Agency of Northern California P.O. Box 15129 Sacramento, CA 95851-0129 2

Wallace L. Duncan, Esq.

James D. Pembroke, Esq.

Michael R. Postar, Esq.

Lisa S. Gast, Esq.

Sean M. Neal, Esq.

Peter J. Scanlon, Esq.

Derek A. Dyson, Esq.

Duncan, Weinberg, Genzer & Pembroke, P.C.

1615 M Street, N.W., Suite 800 Washington, DC 20036-3203 e-mail: ndr(dwgp.com James C. Feider Director, Electric Department City of Redding 777 Cypress Avenue Redding, CA 96049-6071 Grant Kolling Senior Assistant City Attorney City of Palo Alto P.O. Box 10250 Palo Alto, CA 94303 Rick Coleman, General Manager Trinity Public Utility District P.O. Box 1216 Weaverville, CA 96093-1216 Harrison Call Call Company 130 S. Cloverdale Blvd.

P.O. Box 219 Cloverdale, CA 95425 William C. Walbridge, General Manager M-S-R Public Power Agency P.O. Box 4060 Modesto, CA 95352 James H. Pope Director of Electric Utility City of Santa Clara 1500 Warburton Avenue Santa Clara, CA 95050 Roger VanHoy Assistant General Manager, Electric Resources Modesto Irrigation District P.O. Box 4060 Modesto, CA 95352 Roland D. Pfeifer, Esq.

Assistant City Attorney City of Santa Clara 1500 Warburton Avenue Santa Clara, CA 95050 Girish Balachandran Assistant Director of Utilities City of Palo Alto P.O. Box 10250 Palo Alto, CA 94303 3

Scott Steffen, Esq.

Assistant General Counsel Modesto Irrigation District P.O. Box 4060 Modesto, CA 95352 Sheldon L. Trubatch, Esq.

Law Offices of Sheldon L. Trubatch 4222 River Road, NW, #1 Washington, DC 20016 e-mail:

lawofficesofsheldontrubatch(starpower.net David A. Repka, Esq.

Counsel for Pacific Gas & Electric Company 4

DC 349734.1