ML072820003
| ML072820003 | |
| Person / Time | |
|---|---|
| Site: | Palo Verde  |
| Issue date: | 10/18/2007 |
| From: | Markley M NRC/NRR/ADRO/DORL/LPLIV |
| To: | Moore C PNM Resources |
| Markley, M T, NRR/DORL/LP4, 301-415-5723 | |
| Shared Package | |
| ML072820002 | List: |
| References | |
| TAC MD6791 | |
| Download: ML072820003 (4) | |
Text
October 18, 2007 Mr. Charles L. Moore Associate General Counsel PNM Resources, Inc.
Alvarado Square MS-1200 Albuquerque, NM 87158
SUBJECT:
PALO VERDE NUCLEAR GENERATING STATION, UNIT 2, RE: SALE AND LEASEBACK TRANSACTION BY PUBLIC SERVICE COMPANY OF NEW MEXICO (TAC NOS. MD6791)
Dear Mr. Moore:
This is in response to your letter dated August 1, 2007 (Agencywide Documents Access and Management System (ADAMS) Accession No. ML072220214), in which you informed the U.S. Nuclear Regulatory Commission (NRC) of the sale of an equity interest in Palo Verde Nuclear Generating Station (Palo Verde), Unit 2, Facility Operating License No. NPF-51. Your letter informed NRC that on June 29, 2007, Palo Verde Leasing Corporation (PVLC) and PNMR Development and Management Corporation (PNMR Development) entered into a Sale Agreement, pursuant to which PNMR agreed to purchase PVLCs equity interest in the sale and leaseback transaction. Your letter also stated that on June 29, 2007, in accordance with the Sale Agreement, PVLC transferred its equity interest in the sale and leaseback transaction to PNMR Development.
In your letter dated August 1, 2007, you indicated that the equity investor in one of Public Service Company of New Mexicos (PNMs) original Palo Verde, Unit 2, transactions was First Chicago Lease Holdings, Inc. (FCLH) and that FCLH subsequently transferred its interest as an equity investor to Palo Verde Leasing Corporation (PVLC). Your letter stated that PNMR Development is a wholly owned subsidiary of PNM Resources, Inc.; PNM is a subsidiary of PNM Resources, Inc., and an affiliate of PNMR Development. Your letter further stated that the current owner trustee for the sale and leaseback transaction, U.S. Bank National Association, remains unchanged, and the terms of the lease remain unchanged.
The NRC staff has completed its review of your letter and the associated sale and leaseback transaction. License condition 2.B.(6)(a) authorized PNM to transfer its ownership to certain equity investors identified in the submissions dated August 6 and November 26, 1986. First Chicago Corporation was named in the Final Equity Investor List submitted to the NRC on dated August 6, 1986. License condition 2.B.(6)(b) requires licensees to notify NRC in writing prior to any change in: (i) the terms and conditions of any lease agreements executed as part of this transaction; The NRC staff considers a change in the parties to the lease agreement to be a material change in the terms of the agreement and, thus, subject to the prior reporting requirement in license condition 2.B.(6)(b). Therefore, the transfer of the equity interest from one investor to another required prior written notice to the NRC.
In accordance with license condition 2.B.(6)(b), the NRC expects prior notification of all future sale and leaseback transactions. If you have any questions regarding this matter, I can be contacted by telephone at (301) 415-5723.
Sincerely,
/RA/
Michael T. Markley, Senior Project Manager Plant Licensing Branch IV Division of Operating Reactor Licensing Office of Nuclear Reactor Regulation Docket Nos. STN 50-528, STN 50-529, and STN 50-530 cc: See next page
In accordance with condition 2.B.(6)(b), the NRC expects prior notification of all future sale and leaseback transactions. If you have any questions regarding this matter, I can be contacted by telephone at (301) 415-5723.
Sincerely,
/RA/
Michael T. Markley, Senior Project Manager Plant Licensing Branch IV Division of Operating Reactor Licensing Office of Nuclear Reactor Regulation Docket Nos. STN 50-528, STN 50-529, and STN 50-530 DISTRIBUTION:
PUBLIC LPLIV r/f RidsAcrsAcnwMailCenter RidsNrrDirsItsb RidsNrrDorlDpr RidsNrrDorlLpl4 RidsNrrPMMMarkley RidsNrrLAJBurkhardt RidsOgcRp RidsRgn4MailCenter RidsNrrDprPfpb SHom, NRR/DPR CPittiglio, NRR/DPR/PFPB TPruett, RIV/DRP/RPB-D ADAMS Accession No. ML072820003
- No Legal Objection OFFICE NRR/LPL4/PM NRR/LPL4/LA OGC NRR/LPL4/BC NAME MMarkley JBurkhardt SUttal*
THiltz DATE 10/11/07 10/11/07 10/15/07 10/18/07 OFFICIAL AGENCY RECORD
Palo Verde Nuclear Generating Station cc:
Mr. Steve Olea Arizona Corporation Commission 1200 W. Washington Street Phoenix, AZ 85007 Mr. Douglas Kent Porter Senior Counsel Southern California Edison Company Law Department, Generation Resources P.O. Box 800 Rosemead, CA 91770 Senior Resident Inspector U.S. Nuclear Regulatory Commission P.O. Box 40 Buckeye, AZ 85326 Regional Administrator, Region IV U.S. Nuclear Regulatory Commission Harris Tower & Pavillion 611 Ryan Plaza Drive, Suite 400 Arlington, TX 76011-8064 Chairman Maricopa County Board of Supervisors 301 W. Jefferson, 10th Floor Phoenix, AZ 85003 Mr. Aubrey V. Godwin, Director Arizona Radiation Regulatory Agency 4814 South 40 Street Phoenix, AZ 85040 Mr. Scott Bauer, Acting General Manager Regulatory Affairs and Performance Improvement Palo Verde Nuclear Generating Station Mail Station 7636 P.O. Box 52034 Phoenix, AZ 85072-2034 Mr. Matthew Benac Assistant Vice President Nuclear & Generation Services El Paso Electric Company 340 East Palm Lane, Suite 310 Phoenix, AZ 85004 Mr. John Taylor Public Service Company of New Mexico 2401 Aztec NE, MS Z110 Albuquerque, NM 87107-4224 Mr. Geoffrey M. Cook Southern California Edison Company 5000 Pacific Coast Hwy Bldg D21 San Clemente, CA 92672 Mr. Robert Henry Salt River Project 6504 East Thomas Road Scottsdale, AZ 85251 Mr. Jeffrey T. Weikert Assistant General Counsel El Paso Electric Company Mail Location 167 123 W. Mills El Paso, TX 79901 Mr. John Schumann Los Angeles Department of Water & Power Southern California Public Power Authority P.O. Box 51111, Room 1255-C Los Angeles, CA 90051-0100 Mr. Brian Almon Public Utility Commission William B. Travis Building P.O. Box 13326 1701 North Congress Avenue Austin, TX 78701-3326 Ms. Karen O'Regan Environmental Program Manager City of Phoenix Office of Environmental Programs 200 West Washington Street Phoenix AZ 85003 Mr. Randall K. Edington Senior Vice President, Nuclear Mail Station 7602 Arizona Public Service Company P. O. Box 52034 Phoenix, AZ 85072-2034