ENOC-09-00015, Request for Extension of Orders Approving Transfer of Control of Licenses

Request for Extension of Orders Approving Transfer of Control of Licenses

ML091420271
Person / Time
Site:	Palisades, Indian Point, Pilgrim, Vermont Yankee, Big Rock Point, FitzPatrick
Issue date:	05/15/2009
From:	Kansler M Entergy Nuclear Operations, Entergy Operations
To:	Document Control Desk, Office of Nuclear Reactor Regulation
References
ENOC-09-00015, FOIA/PA-2013-0151
Download: ML091420271 (5)

Text

Entergy Operations, Inc.

Entergy Nuclear Operations, Inc.

- 1340 Echelon Parkway .

Jackson, MS 39213-1995 601-368-5692 Michael R. Kansler President, Chief Executive Officer

&Chief Nuclear Officer 10 CFR 50.80 ENOC-09-00015 May 15, 2009 U.S. Nuclear Regulatory Commission Attn: Document Control Desk One White Flint North 11555 Rockville Pike Rockville, MD 20852-2738 (301) 415-7000

Subject:

Entergy Nuclear Operations, Inc.

Pilgrim Nuclear Power Station Docket No. 50-293 Indian Point Nuclear Generating Unit Nos. 1, 2 & 3 Docket Nos.50-003, 50-247, 50-286 & 72-51 James A. FitzPatrick Nuclear Power Plant Docket Nos. 50-333 & 72-12 Vermont Yankee Nuclear Power Station Docket Nos. 50-271 & 72-59 Palisades Nuclear Plant Docket No. 50-255 & 72-7 Big Rock Point Docket Nos. 50-155 & 72-43 Request for Extension of Orders Approvinq Transfer of Control of Licenses By letter dated July 30, 2007, and as supplemented on October 31, 2007, December 5, 2007, January 24, 2008, March 11, 2008, April 22, 2008, and May 2, 2008, Entergy Nuclear Operations, Inc., also referred to previously as ENOI, LLC (either company herein, ENO),

.acting on behalf of itself and Entergy Nuclear Generation Company, Entergy Nuclear FitzPatrick, LLC, Entergy Nuclear Vermont Yankee, LLC, Entergy Nuclear Indian Point 2, LLC, Entergy Nuclear Indian Point 3, LLC, and Entergy Nuclear Palisades, LLC (together, Applicants), requested that the Nuclear Regulatory Commission (NRC) consent to the transfer of control of the above-captioned licenses pursuant to Section 184 of the Atomic Energy Act, as amended (the Act), and 10 CFR 50.80, in connection with a proposed corporate restructuring and establishment of Enexus Energy Corporation (Enexus). NRC approved the license transfers in seven Orders dated July 28, 2008 that were published in the Federal Register on August 4, 2008.

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ENOC-09-00015 Page 2 of 5 Condition 3 of each Order provides that, if the proposed corporate restructuring and establishment of Enexus is not accomplished within one year, the Order shall become "null and void." However, each Order also provides in the same condition that the expiration date may be extended by NRC Order, "upon written application and good cause shown." ENO requests that each of the Orders be extended by six months, until January 28, 2009, in order to allow ample time for completion of the proposed restructuring and establishment of Enexus.

There is good cause to extend the existing approvals. Diligent efforts have been made to obtain the required state and federal regulatory approvals, and many of the required approvals have been obtained. However, proceedings are ongoing before the New York State Public Service Commission (PSC) and State of Vermont Public Service Board (PSB),

and these two state agencies may not complete their regulatory approval processes in time to complete the restructuring and establishment of Enexus before July 28, 2009, as required by the current NRC Orders approving the license transfers. Nevertheless, the Applicants are confident that the approvals of the New York PSC and Vermont PSB will be obtained. In New York, the Applicants have been actively engaged in settlement negotiations. The details of these negotiations must be maintained confidential under applicable rules, but the settlement negotiations were formally noticed in the New York proceeding earlier this year. In Vermont, the only remaining party that requires resolution in the proceeding is the Vermont Department of Public Service (DPS). The record in the PSB proceeding to review the proposed reorganization was closed following evidentiary hearings, and the Applicants are optimistic that approval will be received.

In addition, considerable progress has been made in securing financing to support the proposed transactions. However, uncertainties in the financial markets and the need to obtain required state regulatory approvals have slowed the process of obtaining all of the requisite financing necessary to complete the transactions, making it difficult to conclude that all of the necessary arrangements are certain to be completed in time to support a closing of the transactions by July 28, 2009.

The conditions under which the NRC issued the Orders approving license transfers have not changed significantly. The technical qualifications of the new organization and other bases for approving the transfers remain intact, and the various inter-company contractual arrangements and the financial support arrangements, as described in the application and supplemental information, remain valid and fully support the NRC Staff's findings regarding the financial qualifications of the Applicants. As such, the current conditions continue to support the NRC Staff's findings regarding the technical and financial qualifications of the affected licensees.

If NRC requires additional information concerning this license transfer request, please contact John McCann, Director, Nuclear Safety and Licensing, at (914) 272-3370 or jmccanl @entergy.com.

There are no new regulatory commitments in this letter.

ENOC-09-O0015 Page 3 of 5 I declare under penalty of perjury that the foregoing is true and correct. Executed 1 5th day of May 2009. A

ENOC-09-00015 Page 4 of 5 cc:

Regional Administrator, Region I Regional Administrator, Region III U.S. Nuclear Regulatory Commission U.S. Nuclear Regulatory Commission 475 Allendale Road 2443 Warrenville Road, Suite 210 King of Prussia, PA 19406-1415 Lisle, IL 60532-4352 Mr. Theodore B. Smith, Project Manager, Ul Steven R. Hom U. S. Nuclear Regulatory Commission U.S. Nuclear Regulatory Commission Mail Stop T8F5 One White Flint North Two White Flint North 11555 Rockville Pike 11545 Rockville Pike Rockville, MD 20852 Rockviller MD, 20852 Mail Stop OWFN/1 2-D3 Mr. John Boska, Sr. Project Manager, Resident Inspector's Office IPEC U2, U3 Indian Point 1, 2 & 3 DORL, Plant Licensing Branch I-I U.S. Nuclear Regulatory Commission U.S. Nuclear Regulatory Commission P.O. Box 59 Mail Stop O-8-C2 Buchanan, NY 10511 Washington, DC 20555 Mr. B. K. Vaidya, Project Manager, JAF Resident Inspector's Office Division of Licensing Project Management U.S. Nuclear Regulatory Commission Office of Nuclear Reactor Regulation James A. FitzPatrick Nuclear Power Plant Mail Stop 08 G14 P.O. Box 136 Washington, DC 20555 Lycoming, NY 13093 Mahesh L. Chawla, Project Manager, PAL U.S. Nuclear Regulatory Commission Project Directorate III Resident Inspector's Office Division of Licensing Project Management Palisades Plant Office of Nuclear Reactor Regulation 27782 Blue Star Memorial Highway Mail Stop 8H 4A Covert, MI 49043 Washington, DC 20555 Mr. J. S. Kim, Project Manager, PIL, VY Senior Resident Inspector Division of Licensing Project Management Pilgrim Nuclear Power Station Office of Nuclear Reactor Regulation Rocky Hill Road Mail Stop 08 C2 Plymouth, MA 02360 Washington, DC 20555 Mr. D. V. Pickett, Project Manager, USNRC Resident Inspector Indirect Transfer of Licenses Application Entergy Nuclear Vermont. Yankee Office of Nuclear Reactor Regulation P.O. Box 157 Mail Stop 08 G9A Vernon, VT 05354 Washington, DC 20555

ENOC-09-00015 Page 5 of 5 cc:

Mr. Charles Donaldson, Esq. Mr. Robert Walker, Director Assistant Attorney General Massachusetts Department of Public Health New York Department of Law Schrafft Center Suite 1 M2A 120 Broadway Radiation Control Program New York, NY 10271 529 Main Street Charlestown, MA 02129 Mr. F. Murray, Jr., President Mr. Don Boyce, Director New York State Energy, Research, and Mass. Emergency Management Agency Development Authority 400 Worcester Road 17 Columbia Circle Framingham, MA 01702 Albany, NY 12203-6399 Mr. Paul Eddy Michigan Department of Attorney General Public Service Commission Special Litigation Division New York State Department of Public Service 525 West Ottawa Street 3 Empire State Plaza Sixth Floor, G. Mennen Williams Building Albany, NY 12223 Lansing, MI 48913 Mayor, Village of Buchanan Office of the Governor 236 Tate Avenue P.O. Box 30013 Buchanan, NY 10511 Lansing, MI 48909 Mr. Raymond L. Albanese Ms. Mary Jo Kunkle Four County Coordinator Executive Secretary 200 Bradhurst Avenue Michigan Public Service Commission Unit 4 Westchester County 6545 Mercantile Way Hawthorne, NY 10532 P. 0. Box 30221 Lansing, MI 48909 Mr. David O'Brien, Commissioner Michigan Department of Environmental VT Department of Public Service Quality 112 State Street - Drawer 20 Waste and Hazardous Materials Division Montpelier, VT 15620-2601 Hazardous Waste and Radiological Protection Section Nuclear Facilities Unit Constitution Hall, Lower-Level North 525 West Allegan Street, P.O. Box 30241 Lansing, MI 48909-7741 Supervisor, Covert Township P.O. Box 35 Covert, MI 49043