ML17311B216

Forwards Application for Amends to Licenses NPF-51 & NPF-74, Rescinding Previous Sale & Leaseback Transactions by Epec. Discussion of NSHC Determination,Environ Considerations & Antitrust Considerations Also Encl

ML17311B216
Person / Time
Site:	Palo Verde
Issue date:	10/03/1995
From:	Stewart W ARIZONA PUBLIC SERVICE CO. (FORMERLY ARIZONA NUCLEAR
To:	NRC OFFICE OF INFORMATION RESOURCES MANAGEMENT (IRM)
Shared Package
ML17311B217	List: ML17311B216
References
102-03494-WLS-A, 102-3494-WLS-A, NUDOCS 9510100366
Download: ML17311B216 (10)

Text

PRIORITY 1 (ACCELERATED RZDS PROCESSING)

REGULATORY INFORMATION DISTRIBUTION SYSTEM (RIDS)

ACCESSION NBR:9510100366 DOC.DATE: 95/10/03 NOTARIZED: YES DOCKET g FACIL:STN-.50-529 Palo Verde Nuclear Station, Unit 2, Arizona Publi 05000529 P STN-50-530 Palo Verde Nuclear Station, Unit 3, Arizona Publi 05000530 AUTH. NAME AUTHOR AFFILIATION STEWART,W.L. Arizona Public Service Co. (formerly Arizona Nuclear Power RECIP.NAME RECIPIENT AFFILIATION Document Control Branch (Document Control Desk) I

SUBJECT:

Forwards application for amends to licenses NPF-51 & NPF-74, rescinding previous sale & leaseback transactions by EPEC.

Discussion of NSHC determination, environ considerations &

antitrust considerations also encl.

DISTRIBUTION CODE: AOOID TITLE: OR COPIES RECEIVED:LTR Submittal: General Distribution t ENCL L SIZE: +2 NOTES:Standardized Standardized plant.

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1 NUDOCS-ABSTRACT 1 1 OGC/HDS2 1 0 EXTERNAL: NOAC 1 1 NRC PDR 1 1 N

NOTE TO ALL "RZDS" RECIPIENTS:

PLEASE HELP US TO REDUCE WASTE! CONTACT THE DOCUMENT CONTROL DESK, ROOM OWFN 5D8 (415-2083) TO ELIMINATE YOUR NAME FROM DISTRIBUTION LISTS FOR DOCUMENTS YOU DON'T NEED!

TOTAL NUMBER OF COPIES REQUIRED: LTTR 20 ENCL 19

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Arizona Public Service Company P.O, 8OX 53999 ~ PHOENIX. ARIZONA 85072-3999 WILLIAML. STEWART 102-03494-WLS/AKK/JRP EXECUTIVEVICEPAEStOENT NUCLEAft October 3, 1995 U. S. Nuclear Regulatory Commission ATTN: Document Control Desk Mail Station P1-37 Washington, DC 20555-0001

Subject:

Palo Verde Nuclear Generating Station (PVNGS)

Units 2 and 3 Docket Nos. STN 50-529/530 Amendments to Operating License Nos. NPF-51 and NPF-74 to Delete Provisions for El Paso Electric Company's Sale and Leaseback Transactions Arizona Public Service Company (APS), as Operating Agent for the Palo Verde Nuclear Generating Station Units 1, 2, and 3 (Palo Verde), joined by El Paso Electric Company (El Paso), a Texas corporation, hereby requests that the NRC, pursuant to 10 CFR 50.80 and 10 CFR 50.90, amend Operating License Nos. NPF-51 and NPF-74 to delete provisions of those licenses relating to certain previous sale and leaseback transactions that were added by Amendment No.3, dated August 15,1986, for License No. NPF-51; and Amendment No. 1, dated December 2, 1987, for License No. NPF-74.

El Paso is currently a debtor, and debtor in possession, for purposes of Title 11, United States Bankruptcy Code, 11 U.S.C. H101 ~et se ., in a case pending before the United States Bankruptcy Court for the Western District of Texas, Austin Division. During the course of the bankruptcy case, El Paso's management has continued to manage the operations and affairs of EI Paso, subject to the authority of its Board of Directors, as a debtor in possession under the jurisdiction of the Bankruptcy Court. El Paso has continued to make all scheduled operation and maintenance payments required to be made by it with respect to Palo Verde. At all times during the pendency of the bankruptcy case, APS as operating agent, has been responsible for the day-to-day operation of the Palo Verde facility.

In the near future, El Paso will be filing with the Bankruptcy Court a Plan of Reorganization. The Plan would allow El Paso to emerge from bankruptcy as a financially viable entity having the continuing ability to provide reliable electric service to its customers. The Plan will propose a reorganization of El Paso as a "stand alone" corporation and is subject to, inter alia, the receipt of all necessary regulatory approvals needed for implementation of the Plan, including prior approval by the NRC.

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U. S. Nuclear Regulatory Commission ATTN: Document Control Desk Amendments to Operating License Page 2 The enclosure to this letter supports the request for the proposed License Amendments.

Section II of the enclosure contains a discussion of the No Significant Hazards Consideration Determination, Environmental Considerations, and Antitrust Considerations.Section IV of the enclosure contains the marked-up license pages and Appendix B contains additional information relative to the following agencies: (1) Federal Energy Regulatory Commission; (2) Securities and Exchange Commission; (3) Public Utility Commission of Texas; and (4) New Mexico Public Utility Commission.

To complete all of the necessary transactions in an orderly and timely manner, and to provide El Paso with some discretion in the timing of such transactions, it is respectively requested that the NRC issue the license amendment as. soon as possible in order to permit El Paso sufficient time to re-acquire its ownership interests in Palo Verde Units 2 and 3 that had been subject to sale and leaseback transactions.

The Plant Review Board and Offsite Safety Review Committee have reviewed and approved the proposed amendment. Pursuant to 10 CFR 50.91(b)(1), a copy of this request is being forwarded to the Arizona Radiation Regulatory Agency.

'incerely,

~l JML/AKK/JRP/rv Enclosure cc: L. J. Callan K. E. Perkins B. E. Holian K. E. Johnston R. S. Wood W. M. Lambe L. J. Chandler, Esq.

. J. Rutberg, Esq.

A. V. Godwin (ARRA)

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STATE OF TEXAS COUNTY OF EL PASO I, Eduardo A. Rodriguez, represent that I am Senior Vice President, Secretary and General Counsel, that the foregoing document has been signed by me on behalf of El Paso Electric Company with full authority to do so, that I have read such document and know its contents, and that to the best of my knowledge and belief, the statements made therein are true and correct.

ardo . dr' Sworn to before me this ~ day of September, 1995.

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I, W. L. Stewart, represent that I am Executive Vice President - Nuclear, Arizona Public Service Company (APS), that the foregoing document has been signed by me on behalf of APS with full authority to do so, and that to the best of my knowledge and belief, the statements made therein are true and correct.

W. L. Stewart Sworn To Before Me This ~ Day Of~A, 1995.

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