ML17299B291
| ML17299B291 | |
| Person / Time | |
|---|---|
| Site: | Palo Verde  |
| Issue date: | 06/02/1986 |
| From: | Miraglia F Office of Nuclear Reactor Regulation |
| To: | |
| Shared Package | |
| ML17299B293 | List: |
| References | |
| NUDOCS 8606110611 | |
| Download: ML17299B291 (6) | |
Text
UNITED STATES NUCLEAR REGUI ATORQ COMMISSION WASHINGTON, D. C. 20555 ARIZONA PUBLIC SEP VICE COMPANY, ET AL.
DOCKET NO.
STN 50-528 PALO VEROE NUCLEAR GENERATING STATION, UNIT NO.
1 AMENDMENT TO FACILITY OPERATING LICENSE Amendment No.
6 L'icense No.
NPF-41 1.
The Nuclear Regulatory Commission (the Commission) has found that:
A.
The present amendment, issued in response to the February 5, 1986 application by the Arizona Public Service Company (APS) with respect to a sale and leaseback financing transaction by licensee, Public Service Company of New Mexico, complies with the standards and requirements of the Atomic Energy Act of 1954, as amended (the Act) and the Commission's rules and regulations set forth in 10 CFR Chapter I; B.
Previously, the Commission by an Order on December 12, 1985 had stated:
On October 18, 1985 the Arizona Public Service Company filed with the NRC an Application In Respect Of A Sale And Leaseback Financing Transaction By Public Service Company Of New Mexico.
The Commission has determined that in the totality of the circumstances presented to it, this proposed financial transaction with the license amendment recommended by the staff and subject to the conditions specified in this order are acceptable under the Atomic Energy Act and the Commission regulations.
This conclusion is subject to the condition that the lessor and anyone else who may acquire an interest under the transaction which is the subject of this application are prohibited from exercising directly or indirectly any control over the licensees of the Palo Verde nuclear facility.
For purposes of this condition, the limitations in 10 CFR 50.81 "Creditor Regulations" as now in effect and as they may be subsequently amended are fully applicable to the named lessor and any successor in interest to that lessor as long as the license for the Palo Verde nuclear facility remains in effect.
Accordingly, this financial trans-action shall have no effect on the license for the Palo Verde nuclear facility throughout the term of the license.
8bOb110bii SbOb02 PDR ADOCK 05000528 P
I 1
4 1,
I
Subject to the foregoing, the Commission consents to the financial transaction as set forth in the application and authorizes the Director of the Office of Nuclear Reactor Regulation to amend the license as described in SECY-85-367 and this order.
C.
D.
E.
F.
G.
The Commission, by Order of December 12,
- 1985, approved the sale and leaseback of Public Service Company of New Mexico's undivided interest in Palo Verde Unit 1.,
The license amendment issued pursuant to that Commission Order and the licensee's application provided that the transfer was to be made by December 31, 1985.
Not all of Public Service Company of New Mexico's undivided interest in Palo Verde Unit 1 was'ransferred by that date.
By application of February 5, 1986, APS sought an extension of the time until August 31, 1986, in which the Public Service Company of New Mexico may sell the remaining portion of its interest in Palo Verde Unit 1 under sale and leaseback transactions.
The present amendment authorizes such sale and leaseback transactions until August 31, 1986.
The facility will operate in conformity with the above application and the Commission's Order of December 12, 1985, the provisions of Act, and the rules and regulations of the Commission; There is reasonable assurance (i) that the activities authorized by this amendment can be conducted without endangering the health and safety of the public, and (ii) that such activities will be conducted in compliance with the Commission's regulations; The issuance of this amendment will not be inimical to the common defense and security or to the health and safety of the public; The issuance of this amendment is in accordance with 10 CFR Part 51 of the Commission's regulations and all applicable requirements have been satisfied.
2.
Accordingly, Paragraph, 2.B(6) is amended to read as follows:
(6)
Pursuant to an Order of the Nuclear Regulatory Commission dated December 12, 1985, the Public Service Company of New Mexico (PNM) was authorized to transfer and PNM has transferred a portion of its ownership share in Palo Verde Unit 1 to certain institutional investors on December 31,
- 1985, and at the same time has leased back from such purchasers the same interest in the Palo Verde Unit 1 facility.
The term of the lease is to January 15, 2015, subject to a right of renewal.
Additional sales and leaseback transactions (for a term expiring on January 15, 2015) of all or a portion of PNM's remaining ownership share in Palo Verde Unit 1 are hereby authorized until August 31, 1986.
Any such sale and leaseback transaction is subject
r I
I to the representations and conditions set forth in the above applica-tions of October.
19, 1985 and February 5,
- 1986, and the Commission's Order of December 12, 1985, consenting to such transactions.
Specifically, the lessor and anyone else who may acquire an interest under this transaction are prohibited from exercising directly or indirectly any control over the licensees of the Palo Verde Nuclear Generating Station, Unit 1.
For purposes of this condition, the limitations in 10 CFR 50.81 "Creditor Regulations" as now in effect and as they may be subsequently amended are fully applicable to the lessor and any successor in interest to that lessor as long as the license for Palo Verde Unit 1 remains in effect; this financial transaction shall have no effect on the license for the Palo Verde nuclear facility throughout the term of the license.
Further, the licensees are also required to notify the NRC in writing prior to any change in:
(i) the terms or conditions of any lease agreements executed as part of this transaction; (ii) the ANPP Participation Agreement, (iii) the existing insurance for the Palo Verde nuclear facility, Unit 1 and (iv) any action by the lessor or others that may have an adverse effect on the safe operation of the facility.
3.
This license amendment is effective as of the date of issuance.
FOR THE NUCLEAR REGULATORY COMMISSION
~~~kg.~>~A~ i QLrCm~~~cr Frank J. CN raglia, Director Division of PNR Licensing-B Date of Issuance:
June 2,
1986 t
I l
I
~
~
I