ML18054A622
| ML18054A622 | |
| Person / Time | |
|---|---|
| Site: | Palisades  |
| Issue date: | 04/04/1989 |
| From: | De Agazio A Office of Nuclear Reactor Regulation |
| To: | Office of Nuclear Reactor Regulation |
| References | |
| TAC-72245, NUDOCS 8904110107 | |
| Download: ML18054A622 (5) | |
Text
UNITED STATES
- NUCLEAR REGULATORY COMMISSION WASHINGTON, D. C. 2055!;;
Docket No~ 50-255 LICENSEE: Consumers Power Company FACILITY: Palisades Plant April 4, 1989
SUBJECT:
SUMMARY
OF MEETING RELATING TO TRANSFER OF OWNERSHIP OF PALISADES PLANT (TAC NO. 72245)
- on January 9, 1989, representatives of Consumers Power Company {CPCo) met with NRC staff members to discuss CPCo's proposal to transfer ownership*of the Palisades Plant. Meeting attendees are identified in Enclosure 1.
The CPCo representatives infonned the NRC that CPCo and Bechtel have been discussing the fonnation of a joint venture for about one year *. The discussions are expected to lead to a resolution of issues raised by Midland.
The joint venture would result in the fonnation of a new entity, the Palisades Generating Company (GENCO).
GENCO would be the owner of the facility and in turn GENCO would be jointly cwned by Consumers Power Company, Bechtel, and at least another party not yet identified.
CPCo would own 44%, Bechtel would own 33% and others would own the remainder.
The responsibility to develop the other participant(s) in the joint venture is Bechtel's. The other participant(s) may not be detennined at the time of application, but those with whom negotiations are.
underway can be revealed to the staff.
To date, Operating Agreements and Purchase Power agreements have been developed along with an interim operating plan and capital expenditure commitments.
The operating agreement will call for CPCo to be the plant operator for the first five years. At year three, GENCO can decide if CPCo is to continue as the plant operator.
No changes are contemplated in the operations staff.
GENCO would consist of about 8 to 12. persons and a Board of Directors. The Board would have seven members, three from CPCo, three from Bechtel, and one from the other participant(s).
CPCo plans to submit a license amendment request to the NRC by about mid-February (Post meeting note: The request was submitted February 27, 1989), and to FERC (to approve the Purchase Power Agreement) about the same time. Other agencies which will have review and approval authority include the SEC, the Michigan PUC, and the local township.
CPCo would hope to have all approvals in place by December 1, 1989.
CPCo indicated that they would like to have indication of NRC approval in about six months with the actual amendment held in abeyance until other approvals have been obtained. This could be a letter indicating that NRC has revie~ed the application and has not identified any obstacles to approval subject to the issuance of other regulatory approvals.
41101 07 890404 *-
- ,_the NRC al so was informed that CPCo recognizes that steam generator rep l ~ceme.nt is necessary.
The units are fabricated and are in storage at Chattanooga.
The capital commitment from GENCO will be available for this and other unplanned issues.
Steam generator replacement should take about six months, and is scheduled tentatively for 1993 but GENCO may like it to be earlier.
- CPCo was advised to pay careful attention to assuring that in the overall organizational structure there is no diminution to the top nuclear manager's access to the decision makers in GENCO.
Additionally, the application should define the interface between the plant and the offsite power system, i.e.
between CPCo power lines and the GENCO plant.
Also, the backup power supply should be discussed.
~~Sr.P Project Directorate 111-1 Division of Reactor Projects - Illi IV, V & Special Projects Office of Nuclear Reactor Regulation
Enclosure:
As stated cc w/enclosure:
See 'next page
NAME Brannen, 0.
Charnoff,.G.
De Agazio, A.
Fremeau, J.
Hoffman, 0.
Hughes, E.
Kessler, W.
Lambe, W.
Lewis, 0.
Luks, P.
Phi 11 ips, M.
Quay, T.
Rang, J.
Rutberg, J.
Scinto, J.
Smedley, R.
Swanson, E.
Virgilio, M.
Walicki, M.
Wood, R.
MEETING ATlENOANCEE
- ENCLOSURE 1 AFFILIATION Bechtel Shaw, Pittman NRC/NRR CPCo CPCo Bechtel CPCo NRC/NRR Shaw, Pittman Bechtel Bishop, Cook, Ptircell, ahd Reynolds NRC/NRR cpc'o NRC/OGC NRC/OGC CPCo NRC/RIII NRC/NRR CPCo NRC/NRR
Mr. Kenneth W. Berry Consumers Power Company cc:
M. I. Miller, Esquire Sidley & Austin 54th Floor One First National Plaza Chicago, Illinois 60603 Mr. Thomas A. McNish, Secretary Consumers Power Company 212 West Michigan Avenue Jackson, Michigan 49201 Judd L. Bacon, Esquire Consumers Power Company 212 West Michigan Avenue Jackson, Michigan 49201 Regional Administrator, Region III U.S. Nuclear Regulatory Commission 799 Roosevelt Road Glen Ellyn, Illinois 60137 Jerry Sarno Township Supervisor Covert Township 36197 M-140 Highway Covert, Michigan 49043 Office of the Governor Room 1 - Capitol Building Lansing, Michigan 48913 Mr. Gerald B. Slade Plant General Manager Palisades Plant 27780 Blue Star Memorial Hwy.
Covert, Michigan 49043 Resident Inspector c/o U.S. Nuclear Regulatory Commission Palisades Plant 27782 Blue Star Memorial Hwy.
Covert, Michigan 49043 Palisades Plant Nuclear Facilities and Environmental Monitoring Section Office Division of Radiological Health P.O. Box 30035 Lansing, Michigan 48909
-2~
Chattanooga.
Th~ capital commitment from GENCO will be available for this and other'unplanned issues.
Steam generator replacement should take about six months, and is scheduled tentatively for 1993 but GENCO may like it to be earlier.
CPCo was advised to pay careful attention to assuring that in the overall organizational stru~tu~e there is no diminution to the top nuclear manager's ac~ess to the decision makers in GENCO.
Additionally, th~ application should define the interface between the plant and the offsit~ powei system, i.e.
between CPCo power lines and the GENCO plant.
Also, the backup power supply should be diicussed.
Enclosure:
As stated cc w/enclosure:
See next page DISTRIBUTION iDO.GKET -FI EE I
.NRC-&-LOCA( PDRs PD31 GRAY FILE GHOLAHAN MVIRGILIO PSHUTTLEWORTH LKELLY OGC EJORDAN Original Signed By Albert W. De Agazio, Sr.Project Manager Project Directorate III-1 '
Division of Reactor Projects - III, IV, V & Special Projects Office of Nuclear Reactor Regulation
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