ML17299B294
| ML17299B294 | |
| Person / Time | |
|---|---|
| Site: | Palo Verde  |
| Issue date: | 06/02/1986 |
| From: | Office of Nuclear Reactor Regulation |
| To: | |
| Shared Package | |
| ML17299B293 | List: |
| References | |
| NUDOCS 8606110621 | |
| Download: ML17299B294 (6) | |
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UNITED STATES NUCI EAR REGULATORY COMlVIISSION WASHINGTON, D. C. 20555 SAFETY EVALUATION,BY THE OFFICE OF NUCLEAR REACTOR REGULATION RELATED TO AMENDMIENT NO.
6 TO FACILITY OPERATING. LICENSE NO.
NPF-41 ARIZONA PUBLIC SERVICE COMPANY, ET AL.,
t PALO VERDE NUCLEAR GENERATING STATION, UNIT NO.
1 DOCKET NO.
STN 50-528
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1.0 INTRODUCTION
By application dated February 5, 1986, the Arizona Public Service Company (APS) on behalf of Public Service Company of New Mexico (PNM), requested approval for PNM to sell and leaseback all or part of the remaining portion of PNM's 10.2 percent ownership interest in the Palo Verde Nuclear
, Generating Station, Unit 1, and a proportionate share of one-third of PNM's 10.2 percent ownership interest in the Palo Verde common facilities.
In addition to information provided in the application, the licensee had previously provi'ded financial information by letter dated November 21, 1985.
2.0 COMMISSION ACTION On December 12, 1985, the Nuclear Regulatory Commission, upon review of the staff's Policy Papers SECY-55-350 and SECY 55-)67 which contained a discussion of the proposed transaction, issued an Order consenting to the sale and 1
leaseback transaction.
To provide for health and safety concerns, it required that:
(1)
The lessor and anyone else who may acquire an interest under the proposed transaction be prohibited from exercising directly or indirectly
'ny control over the licensees of Palo 'Verde Unit 1.
For purpose 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 Unit 1 remains in effect.
Accordingly, this financial transaction shall have no effect on the license for Palo Verde Unit 1 throughout the term of the license.
Arizona Pub ic Service Com an (Palo Verde Unit 1), Docket No.
STN 50-528 December 12, 1985.
t 8b0bliOb21 8bOb02 PDR ADOCIAs 05000528 PDR
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s (2)
The Palo Verde Unit 1 operating license be amended to expressly 'require that the NRC be notified in writing prior to any change in:
(i) the executed lease agreements; (ii) the ANPP Participation Agreement; (iii) the existing insurance policies; and (iv) any action by the lessor or others which may have an adverse effect on the safe operation of,.the facility.
(3)
The Palo Verde Unit 1 license be amended to reflect PNM's position as a
lessee of the facility.
The Commission's Order authorized thesale and leaseback of PNM's interest in the Palo Verde Unit 1 facility.
A portion of PNM's interest was not sold within the time period originally requested by PNM.
The present license amendment authorizes the sale and leaseback of PNM's remaining interest in',
PVNGS Unit 1 which was not effected prior to December 31, 1985.
3.0 CONTACT WITH STATE OFFICIAL The Arizona Radiation Regulatory Agency has been advised of the proposed determination of no significant hazards consideration with regard to this amendment.
No comments were received.
4.0 ENVIRONMENTAL CONSIDERATION
S This amendment only involves the administration of the credit and financial arrangements for Palo Verde Unit 1.
The parties will enter into agreements which provide for the sale and leaseback of PNM's ownership share under terms requiring PNM's continued full control and responsibility over this ownership share.
The Commission has ordered (footnote 1,
~sv ra) that in the administration of this arrangement,'he lessor and.anyone else who may acquire an interest under this transaction are prohibited from exercising, directly or indirectly, any control of the Palo Verde Unit 1 license.
The amendment also includes a reporting requirement that the NRC must be notified in writing prior to any change in the executed lease agreements, the ANPP participation agreement, and the existing insurance policies.
Accordingly, this amendment meets the eligibility criteria for categorical exclusion set forth in 10 CFR 51.22 (c)(10).
5.0 CONCLUSION
The staff has concluded, based on the considerations discussed above, that (1) there is reasonable assurance that the health and safety of the public will not be endangered by operation in the proposed
- manner, (2) such activities will be conducted in compliance with'he Commission's regulations, and
('3) the issuance of this amendment will not be inimical to the common defense and security or to the health and safety of the public.
We, therefore, conclude that the request is acceptable.
Dated:
June 2,
1986
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P ISSUANCE OF AMENDMENT NO.
6 TO FACILITY OPERATING LICENSE NPF-41 FOR PALO VERDE UNIT 1 DISTRIBUTION
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8=528 NRC PDR
,Local PDR PD7 Reading FMiraglia JLee (5)
EALicitra
- Attorney, ELD LHarmon EJordan BGrimes JPartlow TBarnhart (4)
MJones MRegan ACRS (10)
- RDiggs, LFMB EButcher NThompson GWKnighton
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