ML17059C148
| ML17059C148 | |
| Person / Time | |
|---|---|
| Site: | Nine Mile Point  |
| Issue date: | 07/19/1998 |
| From: | Callan S NRC (Affiliation Not Assigned) |
| To: | CENTRAL HUDSON GAS & ELECTRIC CORP. |
| Shared Package | |
| ML17059C149 | List: |
| References | |
| NUDOCS 9807240170 | |
| Download: ML17059C148 (10) | |
Text
7590-01-P UNITED STATES OF AMERICA NUCLEAR REGULATORY COMMISSION In the Matter of
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CENTRAL HUDSON GAS 8 ELECTRIC
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CORPORATION
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(Nine Mile Point Nuclear Station
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Unit No. 2)
Docket No. 50-410 ORDER APPROVING APPLICATIONREGARDING RESTRUCTURING OF CENTRAL HUDSON GAS 8 ELECTRIC CORPORATION BY ESTABLISHMENT OF A HOLDING COMPANYAFFECTING LICENSE NO. NPF-69, NINE MILE POINT NUCLEAR STATION, UNIT NO. 2 Central Hudson Gas 8 Electric Corporation (Applicant) is licensed by the U.S. Nuclear Regulatory Commission (NRC or Commission) to own and possess a 9-percent interest in Nine Mile Point Nuclear Station, Unit 2 (NMP2), under Facility Operating License No. NPF-69, issued by the Commission on July 2, 1987.
In addition to Applicant, the other owners who may possess, but not operate, NMP2 are New York State Electric & Gas Corporation with an 18-percent interest, Long Island Lighting Company with an 18-percent interest, and Rochester Gas and Electric Corporation with a 14-percent interest.
Niagara Mohawk Power Corporation (NMPC) owns a 41-percent interest in NMP2, is authorized to act as agent for the other owners, and has exclusive responsibility and control over the operation and maintenance of NMP2. NMP2 is located in the town nf Scriba, Oswego County, New York.
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Under cover of a letter dated April 8, 1998, as resubmitted June 8, 1998, and supplemented April22, and July 9,1998, Applicant submitted an application for consent by the Commission, pursuant to 10 CFR 50.80, regarding a proposed corporate restructuring action that would result in the indirect transfer of the operating license for NMP2 to the extent it is held by Applicant. As a result of the proposed restructuring, Applicant would establish a new holding company and become a subsidiary of the new holding company, not yet named, to be created in accordance with an "Amended and Restated Settlement Agreement" dated January 2, 1998; as modified and approved by the New York State Public Service Commission's (PSC's) "Order Adopting Terms of Settlement Subject to Modifications and Conditions" (issued and effective February 19, 1998) in Case 96-E-0909, and further modified in the PSC's "Modifications to Amended and Restated Settlement Agreement," dated February 26, 1998 (hereafter collectively known as "Settlement Agreement" ). These documents constituting the Settlement Agreement were included with,the application dated April 8, 1998.
According to the'application, the outstanding shares of Applicant's common stock would be exchanged on a share-for-share basis for common stock of the proposed new holding company, such that the holding company would own all of the outstanding common stock of Applicant. Also under the proposed restructuring, Applicant would sell at auction some of its fossil-fueled generating assets, but would continue to be an "electric utility"as defined in 10 CFR 50.2, providing the same utilityservices as it did before the restructuring.
In addition, certain subsidiaries of Applicant would become subsidiaries of the new holding company.
Applicant would retain its ownership interest in NMP2 and would continue to be a licensee.
No direct transfer of the operating license or interests in the station would result from the proposed restructuring.
The transaction would not involve any change to either the management organization or technical personnel of NMPC, which has exclusive responsibility under the
operating license for operating and maintaining NMP2 and which is not involved in the proposed restructuring of Applicant.
Notice of the application for approval was published in the FEDERAL REGISTER on June 2, 1998 (63 FR 30025), and an Environmental Assessment and Finding of No Significant Impact was published in the FEDERAL REGISTER on June 25, 1998 (63 FR 34667).
Under 10 CFR 50.80, no license shall be transferred, directly or indirectly, through transfer of control of the license, unless the Commission shall give its consent in writing. Upon review of the information submitted in the application of April 8, 1998, as resubmitted June 8, 1998, and supplemented by submittals dated April22, and July 9, 1998, the NRC staff has determined that the restructuring of Applicant by establishment of a holding company willnot affect the qualifications of Applicant as a holder of the license, and that the transfer of control of the license for NMP2, to the extent effected by the restructuring, is otherwise consistent with applicable provisions of Iaw, regulations, and orders issued by the Commission, subject to the conditions set forth herein.
These findings are supported by a safety evaluation dated duly 19, 1998.
Accordingly, pursuant to Sections 161b, 161i, 161o, and 184 of the Atomic Energy Act of 1954, as amended, 42 USC gg 2201(b), 2201(i), 2201(o), and 2234, and 10 CFR 50.80, IT IS HEREBY ORDERED that the Commission approves the application regarding the proposed restructuring of Applicant by the establishment of a holding company, subject to the following: (1)
Applicant shall provide the Director, Office of Nuclear Reactor Regulation, a copy of any application, at the time it is filed, to transfer (excluding grants of security interests or liens) from Applicant to its proposed parent, or to any other affiliated company, facilities for the production, transmission, or distribution of electric energy having a depreciated book value exceeding 10 percent (10%) of Applicant's consolidated net utilityplant, as recorded on Applicant's books of
account, and (2) should the restructuring of Applicant not be completed by July 19, 1999, this Order shall become null and void, provided, however, on application and for good cause shown, such date may be extended.
This Order is effective upon issuance.
IV.
By August 19, 1998, any person adversely affected by this Order may file a request for a hearing with respect to issuance of the Order. Any person requesting a hearing shall set forth with particularity how that interest is adversely affected by this Order and shall address the criteria set forlh in 10 CFR 2.714(d).
Ifa hearing is to be held, the Commission will issue an order designating the time and place of the hearing.
The issue to be considered at any such hearing shall be whether this Order should be sustained.
Any request for a hearing must be filed with the Secretaiy of the Commission, U.S.
Nuclear Regulatory Commission, Washington, DC 20555-0001, Attention: Rulemakings and Adjudications Staff, or may be delivered to 11555 Rockville Pike, Rockville, Maryland, between 7:45 a.m. and 4:15 p.m. Federal workdays, by the above date.
Copies should be also sent to the Office of the General Counsel, and to the Director, Office of Nuclear Reactor Regulation, U.S.
Nuclear Regulatory Commission, Washington, DC 20555, and to Ms. Ellen Aheam, Corporate nt Secretary, Central Hudson Gas 8 Electric Corporation, 284 South Avenue, Poughkeepsie, NY 126014879.
For further details with respect to this Order, see the application for approval dated April 8, 1998, as resubmitted under cover of a letter dated June 8, 1998, and supplemented by letters dated April22, June 8, and July 9, 1998, which are available for public inspection at the
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Commission's Public Document Room, the Gelman Building, 2120 L Street, NW., Washington, DC, and at the local public document room located at the Reference and Documents Department, Penfield Library, State University of New York, Oswego, New York 13126.
FOR THE NUCLEAR REGULATORYCOMMISSION Dated at Rockvilie, Maryland, this19tlday of Oui y 1998.
amue I ins, erector Office of Nuclear Reactor Regulation