ML041340018

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Unit 1, License Amendment, Conforming Amendments to Reflect Ownership Change
ML041340018
Person / Time
Site: Oyster Creek, Clinton, Crane
Issue date: 05/27/2004
From: Tam P
NRC/NRR/DLPM/LPD1
To: Crane C
AmerGen Energy Co
Tam P, NRR/DLPM, 415-1451
Shared Package
ML041530497 List:
References
TAC MC1888, TAC MC1889, TAC MC1890
Download: ML041340018 (20)


Text

May 27, 2004 Mr. Christopher M. Crane, President and Chief Executive Officer AmerGen Energy Company, LLC 4300 Winfield Road Warrenville, IL 60555

SUBJECT:

CLINTON POWER STATION, UNIT 1, OYSTER CREEK NUCLEAR GENERATING STATION, AND THREE MILE ISLAND NUCLEAR STATION, UNIT 1, RE: CONFORMING AMENDMENTS TO REFLECT OWNERSHIP CHANGE (TAC NOS. MC1888, MC1889, AND MC1890)

Dear Mr. Crane:

The Commission has issued the enclosed Amendment Nos. 160, 243, 249 to Facility Operating License Nos. NPF-62, DPR-16, and DPR-50 for Clinton Power Station, Unit 1, Oyster Creek Nuclear Generating Station, and Three Mile Island Nuclear Station, Unit 1, in response to your application dated January 30, 2004.

The amendments conform the Operating Licenses to reflect the current ownership structure of AmerGen. Exelon Generation Company currently owns 100% of AmerGen both directly and indirectly as a result of its purchase on December 22, 2003, of the stock of British Energy US Holdings, Inc. The amendments delete the License Conditions that are no longer valid as a result of the change of the AmerGen ownership.

A copy of the related safety evaluation is also enclosed. Notice of Issuance will be included in the Commissions biweekly Federal Register notice.

Sincerely,

/RA/

Peter S. Tam, Senior Project Manager, Section 1 Project Directorate I Division of Licensing Project Management Office of Nuclear Reactor Regulation Docket Nos. 50-461, 50-219, and 50-289

Enclosures:

1. Amendment No. 160 to NPF-62
2. Amendment No. 243 to DPR-16
3. Amendment No. 249 to DPR-50
4. Safety Evaluation cc w/encls: See next page

ML041530497 (Package)

ADAMS Accession No.: ML041340018 (Amendment)

ADAMS Accession No.: ML041530590 (Technical Specifications)

OFFICE PDI-1\\PM PDI-1\\LA PDI-1\\PM PDIII-3/PM RPRP/SC OGC PDIII-2\\SC PDI-1\\SC NAME PTam SLittle PTam for DSkay DPickett BThomas*

SLewis AMendiola RLaufer DATE 5/20/04 5/20/04 5/20/04 5/25/04 4/5/04 5/21/04 5/26/04 5/27/04

  • SE transmitted by memo of 4/5/04.

AMERGEN ENERGY COMPANY, LLC DOCKET NO. 50-461 CLINTON POWER STATION, UNIT 1 AMENDMENT TO FACILITY OPERATING LICENSE Amendment No. 160 License No. NPF-62 1.

The U.S. Nuclear Regulatory Commission (the Commission) has found that:

A.

The application for amendment by AmerGen Energy Company, LLC (the licensee), dated January 30, 2004, complies with the standards and requirements of the Atomic Energy Act of 1954, as amended (the Act), and the Commissions rules and regulations set forth in 10 CFR Chapter I; B.

The facility will operate in conformity with the application, the provisions of the Act, and the rules and regulations of the Commission; C.

There is reasonable assurance (i) that the activities authorized by this amendment can be conducted without endangering the health and safety of the public, and (ii) that such activities will be conducted in compliance with the Commissions regulations; D.

The issuance of this amendment will not be inimical to the common defense and security or to the health and safety of the public; and E.

The issuance of this amendment is in accordance with 10 CFR Part 51 of the Commissions regulations and all applicable requirements have been satisfied.

2.

Accordingly, the license is amended to delete license conditions 2.C.(10), (11), (12), and (13). License Conditions 2.C.(16) and (21) shall be revised to read:

(16)

With respect to the decommissioning trust fund, investments in the securities or other obligations of Exelon Corporation, AmerGen Energy Company, LLC or affiliates thereof, or their successors or assigns shall be prohibited. Except for investments tied to market indexes or other nonnuclear sector mutual funds, investments in any entity owning one or more nuclear power plants are prohibited.

(21)

AmerGen Energy Company, LLC shall take no action to cause Exelon Generation Company, LLC (or successors or assigns of Exelon Generation Company, LLC approved by the NRC) to void, cancel, or diminish the $200 million contingency commitment from Exelon Generation Company, LLC (or successors or assigns of Exelon Generation Company, LLC approved by the NRC) dated December 22, 2003, or cause it to fail to perform or impair its performance under the commitment, or remove or interfere with AmerGens ability to draw upon the commitment. Also, AmerGen Energy Company, LLC shall inform the NRC in writing at any time that it draws upon the $200 million commitment.

3.

This license amendment is effective as of its date of issuance.

FOR THE NUCLEAR REGULATORY COMMISSION

/RA/

Anthony J. Mendiola, Chief, Section 2 Project Directorate III Division of Licensing Project Management Office of Nuclear Reactor Regulation

Attachment:

Changes to the Operating License Date of Issuance: May 27, 2004

ATTACHMENT TO LICENSE AMENDMENT NO. 160 FACILITY OPERATING LICENSE NO. DPR-62 DOCKET NO. 50-461 Replace the following pages of the Operating License with the attached revised pages. The revised pages are identified by amendment number and contain marginal lines indicating the areas of change.

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AMERGEN ENERGY COMPANY, LLC DOCKET NO. 50-219 OYSTER CREEK NUCLEAR GENERATING STATION AMENDMENT TO FACILITY OPERATING LICENSE Amendment No. 243 License No. DPR-16 1.

The Nuclear Regulatory Commission (the Commission) has found that:

A.

The application for amendment by AmerGen Energy Company, LLC, et al., (the licensee), dated January 30, 2004, complies with the standards and requirements of the Atomic Energy Act of 1954, as amended (the Act), and the Commissions rules and regulations set forth in 10 CFR Chapter I; B.

The facility will operate in conformity with the application, the provisions of the Act, and the rules and regulations of the Commission; C.

There is reasonable assurance: (i) that the activities authorized by this amendment can be conducted without endangering the health and safety of the public, and (ii) that such activities will be conducted in compliance with the Commissions regulations; D.

The issuance of this amendment will not be inimical to the common defense and security or to the health and safety of the public; and E.

The issuance of this amendment is in accordance with 10 CFR Part 51 of the Commissions regulations and all applicable requirements have been satisfied.

2.

Accordingly, the license is amended to delete license conditions 3.A, 3.B, 3.C, and 3.D.

License Conditions 3.G and 3.L shall be revised to read:

3.G With respect to decommissioning trust fund investments in the securities or other obligations of Exelon Corporation, AmerGen, or their affiliates, successors, or assigns shall be prohibited. Except for investments tied to market indexes or other nonnuclear sector mutual funds, investments in any entity owning one or more nuclear power plants are prohibited.

3.L AmerGen shall take no action to cause Exelon Generation Company, LLC or its affiliates, successors, or assigns to void, cancel, or diminish its $200 million contingency commitment to AmerGen, dated December 22, 2003, or cause it to fail to perform or impair its performance under the commitment, or remove or interfere with AmerGens ability to draw upon the commitment. Also, AmerGen shall inform the NRC in writing whenever it draws upon the $200 million commitment.

3.

This license amendment is effective as of the date of issuance.

FOR THE NUCLEAR REGULATORY COMMISSION

/RA/

Richard J. Laufer, Chief, Section 1 Project Directorate I Division of Licensing Project Management Office of Nuclear Reactor Regulation

Attachment:

Changes to the Operating License Date of Issuance: May 27, 2004

ATTACHMENT TO LICENSE AMENDMENT NO. 243 FACILITY OPERATING LICENSE NO. DPR-16 DOCKET NO. 50-219 Replace the following pages of the Operating License with the attached revised pages. The revised pages are identified by amendment number and contain marginal lines indicating the areas of change.

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AMERGEN ENERGY COMPANY, LLC DOCKET NO. 50-289 THREE MILE ISLAND NUCLEAR STATION, UNIT NO. 1 AMENDMENT TO FACILITY OPERATING LICENSE Amendment No. 249 License No. DPR-50 1.

The Nuclear Regulatory Commission (the Commission or NRC) has found that:

A.

The application for amendment by AmerGen Energy Company, LLC (the licensee), dated January 30, 2004, complies with the standards and requirements of the Atomic Energy Act of 1954, as amended (the Act), and the Commissions rules and regulations set forth in 10 CFR Chapter I; B.

The facility will operate in conformity with the application, the provisions of the Act, and the rules and regulations of the Commission; C.

There is reasonable assurance: (i) that the activities authorized by this amendment can be conducted without endangering the health and safety of the public, and (ii) that such activities will be conducted in compliance with the Commissions regulations; D.

The issuance of this amendment will not be inimical to the common defense and security or to the health and safety of the public; and E.

The issuance of this amendment is in accordance with 10 CFR Part 51 of the Commissions regulations and all applicable requirements have been satisfied.

2.

Accordingly, the license is amended to delete License Conditions 2.c.(10), (11), (12),

and (13). License Condition (16) shall be revised to read:

AmerGen shall take no action to cause Exelon Generation Company, LLC (or successors or assigns of Exelon Generation Company, LLC approved by the NRC) to void, cancel, or diminish the $200 million contingency fund commitment from Exelon Generation Company, LLC (or successors or assigns of Exelon Generation Company, LLC approved by the NRC) dated December 22, 2003, or cause it to fail to perform or impair its performance under the commitment, or remove or interfere with AmerGens ability to draw upon the commitment.

Further, AmerGen shall inform the Director, Office of Nuclear Reactor Regulation, in writing, at such time that it draws upon the $200 million contingency fund. This provision does not affect the NRCs authority to assure that adequate funds will remain available to fund the transition to safe shutdown, should any questions arise regarding availability of funds for such a purpose.

3.

This license amendment is effective as of its date of issuance.

FOR THE NUCLEAR REGULATORY COMMISSION

/RA/

Richard J. Laufer, Chief, Section 1 Project Directorate I Division of Licensing Project Management Office of Nuclear Reactor Regulation

Attachment:

Changes to the Operating License Date of Issuance: May 27, 2004

ATTACHMENT TO LICENSE AMENDMENT NO. 249 FACILITY OPERATING LICENSE NO. DPR-50 DOCKET NO. 50-289 Replace the following pages of the Operating License with the attached revised pages. The revised pages are identified by amendment number and contain marginal lines indicating the areas of change.

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SAFETY EVALUATION BY THE OFFICE OF NUCLEAR REACTOR REGULATION RELATED TO AMERGEN ENERGY COMPANY, LLC AMENDMENT NO. 160 TO FACILITY OPERATING LICENSE NO. NPF-62 CLINTON POWER STATION, UNIT 1, DOCKET NO. 50-461 AMENDMENT NO. 243 TO FACILITY OPERATING LICENSE NO. DPR-16 OYSTER CREEK NUCLEAR GENERATING STATION, DOCKET NO. 50-219 AMENDMENT NO. 249 TO FACILITY OPERATING LICENSE NO. DPR-50 THREE MILE ISLAND NUCLEAR STATION, UNIT 1, DOCKET NO. 50-289

1.0 INTRODUCTION

By application dated January 30, 2004 (Accession No. ML040420581), AmerGen Energy Company, LLC (the licensee), applied to the Nuclear Regulatory Commission (NRC) for conforming administrative amendments to the operating licenses of Clinton Power Station (Clinton), Oyster Creek Nuclear Generating Station (OCNGS), and Three Mile Island Nuclear Station, Unit No. 1 (TMI-1).

The proposed amendments would revise the Operating Licenses of these three nuclear plants to reflect the current ownership structure of AmerGen. Exelon Generation Company currently owns 100% of AmerGen both directly and indirectly as a result of the purchase on December 22, 2003, of the stock of British Energy US Holdings, Inc. More information on this transaction is available in letter, D. Skay of NRC to J. A. Benjamin, December 15, 2003 (Accession No. ML033300473). Specifically, the proposed conforming amendments would remove British Energys name, delete License Conditions relating to foreign ownership that were imposed when AmerGen acquired its interests in Clinton, OCNGS, and TMI-1, and to reflect the new contingency funding commitment by Exelon Generation Company, in the amount of $200 million.

2.0 REGULATORY EVALUATION

When AmerGen acquired its interests in Clinton, OCNGS, and TMI-1, the predecessor to BE Holdings, British Energy, Inc. was a wholly owned subsidiary of British Energy plc, a Scottish corporation. In accordance with 10 CFR 50.38, Ineligibility of certain applicants, the NRC will not issue a reactor license to any entity that the NRC knows, or has reason to believe, is owned, controlled, or dominated by an alien, a foreign corporation, or a foreign government. In approving the transfers of the Clinton, OCNGS, and TMI-1 licenses to AmerGen, the NRC imposed License Conditions to assure that certain negation measures would remain in effect and to provide for a special notice requirement that would identify potential increases in the percentage of indirect foreign ownership interests in AmerGen.

3.0 TECHNICAL EVALUATION

On December 22, 2003, Exelon Generation Company, LLC (Exelon), purchased 100% of the stock of British Energy US Holdings, Inc. (BE Holdings) which indirectly owned 50% of AmerGen. BE Holdings was formerly owned by British Energy, plc, a foreign corporation. As a result, Exelon now owns 100% of AmerGen both directly (50%) through its previous ownership, and indirectly (50%) through its ownership of BE Holdings (will be renamed Nuclear US Holdings, Inc.). The purchase of BE Holdings by Exelon ended all foreign ownership issues that were previously addressed by conditions incorporated into the three Operating Licenses.

Given that Exelon, through its rights under the AmerGen Limited Liability Company Agreement, already effectively controlled AmerGen prior to its acquisition of BE Holdings, the NRC staff found that the acquisition did not result in any transfer of control of the license under 10 CFR 50.80. Therefore, no further safety evaluation was needed to determine whether the acquisition affected AmerGens qualifications to hold the licenses prior to Exelon purchasing the other 50% of AmerGen through Exelons purchase of BE Holdings.

In a letter dated October 31, 2003, British Energy and Exelon proposed to eliminate their agreement to provide up to $100 million each in standby funds to AmerGen, and to replace it with a new commitment by Exelon alone to provide up to $200 million in standby funds to AmerGen for operational uses. The NRC staff found the proposed change to the commitment acceptable because the full commitment of $200 million reflects Exelons 100% ownership of AmerGen, with all the associated rights and revenue (letter, D. Skay of NRC to J. A. Benjamin, December 15, 2003).

In the January 30, 2004, application for amendment, AmerGen requested that certain License Conditions be eliminated because they were previously imposed to address foreign ownership issues that originally arose because BE Holdings was a subsidiary of a foreign corporation.

These were identified as License Conditions 2.C.(10), (11), (12), and (13) for Clinton, 3.A, B, C, D for OCNGS, and 2.c.(10), (11), (12) and (13) for TMI-1. The NRC staff reviewed the licensees application and finds that since Exelon is a domestic company which owns 100% of AmerGen through direct and indirect means, the referenced License Conditions for Clinton, OCNGS and TMI-1, are no longer needed, and may be eliminated.

The January 30, 2004, application also proposed to revise other License Conditions to reflect Exelons purchase of British Energy plcs ownership interest in AmerGen, Exelons commitment to provide up to $200 million in standby funds to AmerGen for operational uses, and the elimination of the original standby fund commitments. These were identified as License Conditions 2.C.(16) and (21) for Clinton, 3.G and L for OCNGS, and 2.c.(16) for TMI-1. These changes would conform the wording of these License Conditions to what the NRC staff had previously approved by its December 15, 2003, letter. These conforming changes are acceptable.

In summary, the NRC staff found the licensees proposed revision to the three Operating Licenses acceptable, as set forth above. The NRC staff also determined that all the changes depicted by the revised wording have already taken place; all the implementation actions, in the normal sense of the word implementation as it applies to amendments, had already been completed. Thus, there is no need to impose a target date for implementation in the conforming amendments.

4.0 STATE CONSULTATION

In accordance with the Commission's regulations, the Illinois, New Jersey, and Pennsylvania State officials were notified of the proposed issuance of the amendments. The State officials had no comments.

5.0 ENVIRONMENTAL CONSIDERATION

The amendments are needed to conform the Operating Licenses for Clinton, OCNGS, and TMI-1 to reflect a recent indirect transfer. Accordingly, the amendments meet the eligibility criteria for categorical exclusion set forth in 10 CFR 51.22(c)(21). Pursuant to 10 CFR 51.22(b), no environmental impact statement or environmental assessment need be prepared in connection with the issuance of the amendments.

6.0 CONCLUSION

The Commission has concluded, based on the considerations discussed above that (1) there is reasonable assurance that the health and safety of the public will not be endangered by operation in the proposed manner, (2) such activities will be conducted in compliance with the Commission's regulations, and (3) the issuance of the amendments will not be inimical to the common defense and security or to the health and safety of the public.

Principal Contributor: M. A. Dusaniwskyj Date: May 27, 2004

Clinton Power Station, Unit 1 cc:

Senior Vice President - Nuclear Services AmerGen Energy Company, LLC 4300 Winfield Road Warrenville, IL 60555 Vice President of Operations - Mid-West Boiling Water Reactors AmerGen Energy Company, LLC 4300 Winfield Road Warrenville, IL 60555 Vice President - Licensing and Regulatory Affairs AmerGen Energy Company, LLC 4300 Winfield Road Warrenville, IL 60555 Manager Licensing - Dresden, Quad Cities, and Clinton AmerGen Energy Company, LLC 4300 Winfield Road Warrenville, IL 60555 Regulatory Assurance Manager - Clinton AmerGen Energy Company, LLC Clinton Power Station RR3, Box 228 Clinton, IL 61727-9351 Director - Licensing and Regulatory Affairs AmerGen Energy Company, LLC 4300 Winfield Road Warrenville, IL 60555 Document Control Desk-Licensing AmerGen Energy Company, LLC 4300 Winfield Road Warrenville, IL 60555 Site Vice President - Clinton Power Station AmerGen Energy Company, LLC Clinton Power Station RR 3, Box 228 Clinton, IL 61727-9351 Clinton Power Station Plant Manager AmerGen Energy Company, LLC Clinton Power Station RR 3, Box 228 Clinton, IL 61727-9351 Resident Inspector U.S. Nuclear Regulatory Commission RR #3, Box 229A Clinton, IL 61727 Chief Operating Officer AmerGen Energy Company, LLC 4300 Winfield Road Warrenville, IL 60555 Regional Administrator, Region III U.S. Nuclear Regulatory Commission 801 Warrenville Road Lisle, IL 60532-4351 Associate General Counsel AmerGen Energy Company, LLC 4300 Winfield Road Warrenville, IL 60555 R. T. Hill Licensing Services Manager General Electric Company 175 Curtner Avenue, M/C 481 San Jose, CA 95125 Chairman of DeWitt County c/o County Clerks Office DeWitt County Courthouse Clinton, IL 61727 J. W. Blattner Project Manager Sargent & Lundy Engineers 55 East Monroe Street Chicago, IL 60603 Illinois Emergency Management Agency Division of Disaster Assistance &

Preparedness 110 East Adams Street Springfield, IL 62701-1109

Oyster Creek Nuclear Generating Station cc:

Chief Operating Officer AmerGen Energy Company, LLC 4300 Winfield Road Warrenville, IL 60555 Senior Vice President - Nuclear Services AmerGen Energy Company, LLC 4300 Winfield Road Warrenville, IL 60555 Site Vice President - Oyster Creek Generating Station AmerGen Energy Company, LLC P.O. Box 388 Forked River, NJ 08731 Vice President - Mid-Atlantic Operations AmerGen Energy Company, LLC 4300 Winfield Road Warrenville, IL 60555 John E. Matthews, Esquire Morgan, Lewis, & Bockius LLP 1111 Pennsylvania Avenue, NW Washington, DC 20004 Kent Tosch, Chief New Jersey Department of Environmental Protection Bureau of Nuclear Engineering CN 415 Trenton, NJ 08625 Vice President - Licensing and Regulatory Affairs Exelon Generation Company, LLC 4300 Winfield Road Warrenville, IL 60555 Vice President - Operations Support AmerGen Energy Company, LLC 4300 Winfield Road Warrenville, IL 60555 H. J. Miller Regional Administrator, Region I U.S. Nuclear Regulatory Commission 475 Allendale Road King of Prussia, PA 19406-1415 Mayor of Lacey Township 818 West Lacey Road Forked River, NJ 08731 Senior Resident Inspector U.S. Nuclear Regulatory Commission P.O. Box 445 Forked River, NJ 08731 Director Licensing AmerGen Energy Company, LLC Nuclear Group Headquarters P.O. Box 160 Kennett Square, PA 19348 Manager Licensing - Oyster Creek and Three Mile Island AmerGen Energy Company, LLC Nuclear Group Headquarters Correspondence Control P.O. Box 160 Kennett Square, PA 19348 Oyster Creek Generating Station Plant Manager AmerGen Energy Company, LLC P.O. Box 388 Forked River, NJ 08731 Regulatory Assurance Manager Oyster Creek AmerGen Energy Company, LLC P.O. Box 388 Forked River, NJ 08731 Vice President, General Counsel and Secretary AmerGen Energy Company, LLC 2301 Market Street, S23-1 Philadelphia, PA 19101 Pete Eselgroth, Region I U.S. Nuclear Regulatory Commission 475 Allendale Road King of Prussia, PA 19406-1415 Correspondence Control Desk AmerGen Energy Company, LLC 200 Exelon Way, KSA 1-N-1 Kennett Square, PA 19348

Three Mile Island Nuclear Station, Unit 1 cc:

Site Vice President - Three Mile Island Nuclear Station, Unit 1 AmerGen Energy Company, LLC P. O. Box 480 Middletown, PA 17057 Senior Vice President Nuclear Services AmerGen Energy Company, LLC 4300 Winfield Road Warrenville, IL 60555 Vice President - Mid-Atlantic Operations Support AmerGen Energy Company, LLC 200 Exelon Way, KSA 3-N Kennett Square, PA 19348 Senior Vice President -

Mid Atlantic Regional Operating Group AmerGen Energy Company, LLC 200 Exelon Way, KSA 3-N Kennett Square, PA 19348 Vice President -

Licensing and Regulatory Affairs AmerGen Energy Company, LLC 4300 Winfield Road Warrenville, IL 60555 Regional Administrator Region I U.S. Nuclear Regulatory Commission 475 Allendale Road King of Prussia, PA 19406 Chairman Board of County Commissioners of Dauphin County Dauphin County Courthouse Harrisburg, PA 17120 Chairman Board of Supervisors of Londonderry Township R.D. #1, Geyers Church Road Middletown, PA 17057 Senior Resident Inspector (TMI-1)

U.S. Nuclear Regulatory Commission P.O. Box 219 Middletown, PA 17057 Director - Licensing - MId-Atlantic Regional Operating Group AmerGen Energy Company, LLC Nuclear Group Headquarters Correspondence Control P.O. Box 160 Kennett Square, PA 19348 Rich Janati, Chief Division of Nuclear Safety Bureau of Radiation Protection Department of Environmental Protection Rachel Carson State Office Building P.O. Box 8469 Harrisburg, PA 17105-8469 Three Mile Island Nuclear Station, Unit 1 Plant Manager AmerGen Energy Company, LLC P. O. Box 480 Middletown, PA 17057 Regulatory Assurance Manager - Three Mile Island Nuclear Station, Unit 1 AmerGen Energy Company, LLC P.O. Box 480 Middletown, PA 17057 Peter Eselgroth, Region I U.S. Nuclear Regulatory Commission 475 Allendale Road King of Prussia, PA 19406 Michael A. Schoppman Framatome ANP Suite 705 1911 North Ft. Myer Drive Rosslyn, VA 22209 Three Mile Island Nuclear Station, Unit 1 cc:

Vice President, General Counsel and Secretary AmerGen Energy Company, LLC 2301 Market Street, S23-1 Philadelphia, PA 19101 Dr. Judith Johnsrud National Energy Committee Sierra Club 433 Orlando Avenue State College, PA 16803 Eric Epstein TMI Alert 4100 Hillsdale Road Harrisburg, PA 17112 Correspondence Control Desk AmerGen Energy Company, LLC 200 Exelon Way, KSA 1-N Kennett Square, PA 19348 Manager Licensing - Oyster Creek and Three Mile Island AmerGen Energy Company, LLC Nuclear Group Headquarters Correspondence Control P.O. Box 160 Kennett Square, PA 19348