ML091800027
| ML091800027 | |
| Person / Time | |
|---|---|
| Site: | Palo Verde  |
| Issue date: | 06/19/2009 |
| From: | Moore C PNM Resources |
| To: | Document Control Desk, Office of Nuclear Reactor Regulation |
| References | |
| Download: ML091800027 (3) | |
Text
Alvarado Square Albuquerque, NM 87158 R
PNResources.com esources 10 C.F.R. § 50.81 June 19, 2009 Certified Mail - Return Receipt Requested U.S. Nuclear Regulatory Commission Attention: Document Control Desk Washington, DC 20555 Sale and Leaseback Transaction by Public Service Company of New Mexico NRC Docket No. STN 50-529; Palo Verde Nuclear Generating Station, Unit 2 Ladies and Gentlemen:
- .T, purpose
- of this Ietter.-is,to-,provide prior written notification to the Nuclear Regulatory ECpmmissioTn (the;, 'Commission"p) ofthe,proposed tranlsfe-of an equity, interest in awsaleýand,leaseback transaction *that.'wasi the, subjelct:..Qf;a, license: amend~ment, injthe',bov0e docket. The proposed transfer. of the equity interest would-be from PNMR. Development and Management Corporation- ("PNMR. Development"),. an-affiliate of,Public Service Company of New, Mexico ('"PNM"), to PNM. Upon the transfer, PNM wil, own an equity interest, through the existing owneritrust, of a portion of the interests in Palo Verde Nuclear Generating -Station ("PVNGS") Unit 2 that were.the suibject of sale and.leaseback transactionsin 1986 that were:approved by the Commission.
Background. In 1986, PNM proposed to enter into sale and leaseback transactions relating-to PVNGS Unit. 2; By letter dated. August 12, 1986, the Commission issued Amendment No. 2, to Facility. Operating License.NPF-51 (Palo Verde Unit 2), approving the sale. and,leaseback transactions, subject to 10 C.F.R. § 50.81 and the conditions set forth in the Amendment., Currently,:PNM has a:l-.2,..percent ownership: interest in PVNGS Unit 3, 2.267,perm:ent-- oWnership;,interests in..PVNGS Units 1 and 2, and 7.933-percenri lea'sehold interests~-P S
Onitsf..andr.;Qftheý.7..913,.,pergent -.aggregateJleasehold,.interests in P.VeNGSGS. Units:.l<andý-2,;.2,267-per.cent.of Unit,2.: is* leased-, fromPan wner trustwhich is beneficiaily. :Owf-e-dby
.bMR.-Developme~t.rq: -Lc.-...':,,
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Page 2 Subject of This Notice. The equity interest owned by PNMR Development in the trust that owns 2.267 percent of PVNGS Unit 2 is the subject of this notice. The "equity investor" in one of PNM's original PVNGS Unit 2 sale and leaseback transactions executed in 1986 was First Chicago Lease Holdings, Inc. ("FCLH").
FCHL subsequently transferred its interest as an equity investor to Palo Verde Leasing Corporation, a Delaware corporation ("PVLC"). PVLC is not affiliated with PNM.
By letter dated August 1, 2007, PNM notified the Commission of the further transfer by PVLC of its equity interest in the sale and leaseback transaction to PNMR Development on June 29, 2007.
In response to PNM's August 1, 2007 notice, Mike Markley of the Commission Staff advised PNM by letter dated October 18, 2007 (TAC NOS. MD6791) that prior written notice to the Commission is required for the transfer of an equity interest in a PVNGS sale and leaseback transaction from one party to another, even if the terms of the sale and leaseback remain unchanged.
Notably, this is a prior written notice requirement and not a Commission approval requirement.
PNM now proposes to acquire the 2.267 percent leasehold interest in PVNGS Unit 2 which is currently held by PNMR Development. In connection with PNM's August 1, 2007 notice to the Commission, the executed transfer document, the Assignment and Assumption Agreement, was filed. With respect to the current transaction, there is no executed Assignment and Assumption Agreement to be filed. It is anticipated that the terms of such agreement to be entered into between PNMR Development and PNM will be based upon and similar to the previously filed agreement.
PNM is the lessee in the 2007 transaction and is the licensee in this docket. The result of the proposed transfer will be that the equity interest and the lessee interest will both be held by PNM, the licensee.
Since PNM's August 1, 2007 notice to the Commission, PNM has sought and received necessary approval from the Federal Energy Regulatory Commission (order issued June 30, 2008 in Docket No. EC08-69-000) for the acquisition of the equity interest in the sale and leaseback transaction.
PNM also has received approval from its state regulatory agency, the New Mexico Public Regulation Commission ("NMPRC"), by Final Order dated May 26, 2009, in Case No. 08-00305-UT.
Further, the NMPRC has authorized revised New Mexico jurisdictional rates reflecting the proposed transfer to become effective on July 1, 2009.
PNM plans to close the proposed transfer on Friday, July 24, 2009, and is therefore providing this advance written notice to the Commission of the transfer. The proposed transfer will be made in a manner which is specifically permitted under the sale and leaseback transactions as they were originally approved by the Commission. The current "owner trustee" for the sale and leaseback transaction, U.S. Bank National Association, will remain unchanged, and the terms of the lease will remain unchanged
Page 3 If you have any questions, please do not hesitate to call the undersigned at (505) 241-4935. Again, as noted above, PNM plans to close the transaction on July 24, 2009.
Sincerely, Charles L. Moore Associate General Counsel PNM Resources, Inc.
cc:
Certified Mail - Return Receipt Requested Office of Nuclear Reactor Regulation Division of Operating Reactor Licensing Plant Licensing Branch IV Attention: John R. Hall, Senior Project Manager U.S. Nuclear Regulatory Commission Washington, D.C. 20555 Arizona Public Service Company Attention: Nancy Loftin, Esq.
Michael Green, Esq.