ML100550925
| ML100550925 | |
| Person / Time | |
|---|---|
| Site: | Palo Verde  |
| Issue date: | 03/19/2010 |
| From: | Hall J Plant Licensing Branch IV |
| To: | Sanchez L PNM Resources |
| Hall, J R, NRR/DORL/LPL4, 301-415-4032 | |
| References | |
| TAC ME3095, TAC ME3096 | |
| Download: ML100550925 (3) | |
Text
UNITED STATES NUCLEAR REGULATORY COMMISSION WASHINGTON, D.C. 20555-0001 I~arch 19, 2010 Mr. Leonard D. Sanchez Senior Counsel PNM Resources, Inc.
Alvarado Square MS-1200 Albuquerque, NM 87158
SUBJECT:
PALO VERDE NUCLEAR GENERATING STATION, UNITS 1 AND 2 NOTIFICATION OF SALE AND LEASEBACK TRANSACTION BY PUBLIC SERVICE COMPANY OF NEW MEXICO (TAC NOS. ME3095 AND ME3096)
Dear Mr. Sanchez:
This is in response to your letter dated December 31,2009 (Agencywide Documents Access and Management System (ADAMS) Accession No. ML100060405), in which you informed the U.S. Nuclear Regulatory Commission (NRC) of the planned transfer of equity interest in Palo Verde Nuclear Generating Station (PVNGS), Units 1 and 2, Facility Operating License Nos. NPF-41 and NPF-51. Specifically, your letter informed NRC that MFS Leasing Corp.
(MFS) is proposing to transfer a 1.36 percent undivided ownership interest in Unit 1 and a 1.36 percent undivided ownership interest in Unit 2, to Cypress PV Partnership (Cypress).
MFS and Cypress have notified Public Service Company of New Mexico (PNM), that Cypress will execute an assignment and assumption agreement for each of the subject equity interests to be transferred, pursuant to which Cypress will assume the rights and obligations of MFS under the eXisting applicable PVNGS sale and leaseback transaction documents. MFS and Cypress have also notified PNM of the intent to complete the proposed transfer on or after February 1, 2010. Your letter further states that the proposed transfer will be made in a manner that is specifically permitted under the sale and leaseback transactions as they were originally approved by the NRC (Le., the transferee meets the net worth requirement of $25,000,000 and has provided the requisite notices and form of assignment and assumption agreements to the relevant parties to the sale and leaseback transactions). Your letter also states that the current "owner trustee" for the sale and leaseback transactions, U.S. Bank National Association, will remain unchanged, and the terms of both leases will 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) for each unit authorizes PNM to transfer a specified portion of its ownership in that unit to certain equity investors, as further specified and limited therein. License condition 2.B.(6)(a) also states that the limitations in 10 CFR 50.81 are fully applicable to the lessor and any successor in interest to that lessor. License condition 2.B.(6)(b) for each unit requires the 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;... " Based on your letter dated December 31, 2009, the NRC acknowledges that the prior notification requirements regarding such transfers for PVNGS, Units 1 and 2, have been satisfied, and the NRC has no objections to the proposed transfer.
L. Sanchez
- 2 If you have any questions, please contact me at (301) 415-4032 or via e-mail at randy.hall@nrc.gov.
Sincerely,; f --)I (~)~
[,;'1' 1<1 e. ;':"./CL/V J ",'~I ~
t l.uimes R. Hall, Senior Project Manager J
,/Plant Licensing Branch IV Division of Operating Reactor Licensing Office of Nuclear Reactor Regulation Docket Nos. STN 50-528 and STN 50-529 cc: Distribution via Listserv
ML100550925 Sincerely, IRA!
James R. Hall, Senior Project Manager Plant Licensing Branch IV Division of Operating Reactor Licensing Office of Nuclear Reactor Regulation OFFICE NRRlLPL4/PM NRRlLPL4/LA DPRlPFPB/BC OGC NRRlLPL4/BC NRR/LPL4/PM NAME JRHall JBurkhardt RCarlson SUttal - NLO MMarkley JRHall DATE 2/22/10 3/11/10 2/24/10 3/18/2010 3/19/10 3/19/10