ML19343C607
| ML19343C607 | |
| Person / Time | |
|---|---|
| Site: | Palo Verde  |
| Issue date: | 12/09/2019 |
| From: | Annette Vietti-Cook NRC/SECY |
| To: | Escobar V US HR (House of Representatives) |
| SECY RAS | |
| References | |
| 50-528-LT, 50-529-LT, 50-530-LT, 72-44-LT, License Transfer, RAS 55452 | |
| Download: ML19343C607 (4) | |
Text
UNITED STATES NUCLEAR REGULATORY COMMISSION WASHINGTON, D.C. 20555-0001 SECRETARY December 9, 2019 The Honorable Veronica Escobar United States House of Representatives 1505 Longworth House Office Building Washington, DC 20515
Dear Congresswoman Escobar:
On behalf -of the U.S. Nuclear Regulatory Commission (NRC), I am responding to your letter of November 22; 2019 to Chairman Svinicki regarding the application by El Paso Electric Company for transfer of its Palo Verde Nuclear Generating Station and Independent Spent Fuel Storage Installation licenses.
Because the NRC has re.ceived a requestfor hearing. on the license transfer application and your letter relates to subjects that may be raised during any resultant adjudication, the Commission must remain impartial and it would. be inappropriate for the Chairman to discuss or comment oh your letter at this time.
A copy of your letter and this response will be served on the parties in the Palo Verde proceeding.
Sincerely,
~i~~~
Annette L. Vietti-Cook
VERONICA ESCOBAR 16TH DISTRICT, TEXAS ASSISTANT WHIP HOUSE ARMED SERVICES COMMITTEE SUBCOMMIITEE ON M ILITARY PERSONNEL SUBCOMMITIEE ON READINESS HOUSE JUDICIARY COMMITTEE SuecoMMIITEE ON THE CONSTITUTION, CIVIL RIGHTS AND CIVIL LIBERTIES SUBCOMMIITEE ON IMMIGRATION AND CITIZENSHIP
@nngrrss nf +/-qr ~nifru j+/-afrs Jlfousr of ~rprrsmmtiurs
~nsqin~ton1 ~(11 20515 November 22, 2019 Chairwoman Kristine Svinicki U.S. Nuclear Regulatory Commission Washington, DC 20555-0001
Dear Chairwoman Svinicki:
WASHINGTON OFFICE:
1505 LONGWORTH HOUSE OFFICE BUILDING WASHINGTON, DC 20515 (202) 225-4831 EL PASO 0FACE:
221 N. KANSAS STREET, SUITE 1500 EL PASO, TX 79901 (915) 541-1400 http://escobar.house.gov I write in regards to Docket ID NRC-2019-0214, pertaining to the acquisition of El Paso Electric by Sun Jupiter Holdings LLC. El Paso Electric is currently a partial owner of the Palo Verde nuclear power station. As a result, El Paso Electric must seek approval from the Nuclear Regulatory Commission for the Indirect Transfer of Control of Licenses to Sun Jupiter Holdings LLC.
It has been brought to my attention that Sun Jupiter Holdings LLC is owned by Infrastructure Investment Fund (IIF) US Holdings 2, an investment fund with significant ties to J.P. Morgan Chase. However, IIF has failed to disclose these ties in their application to acquire El Paso Electric. In their filings, IIF claims J.P. Morgan's Infrastructure Investments Group (IIG) is simply an investment adviser for IIF, but IIF has enlisted employees from IIG to handle day-to-day responsibilities. Further, J.P. Morgan investment advisors sit on the boards of directors for several IIF companies. The lack of a firewall between the two entities is concerning because items like analyses produced by IIF could be heavily influenced by J.P. Morgan's interests and not the interests of El Pasoans.
The proposed sale of El Paso Electric to IIF will make the utility a private company. As you know, El Paso Electric is currently publicly traded thereby giving consumers access to the disclosures the utility must make to the Securities and Exchange Commission (SEC). For example, consumers can currently access El Paso Electric's filings via the SEC website to view information like the company's current assets, revenues, and obligations. If this sale were to be approved, this information would be shielded from the public and decrease the transparency of the utility.
According to El Paso Electric, more than 400,000 retail and wholesale customers in both West Texas and Southern New Mexico are served by the utility. It has also provided affordable energy to El Pasoans for more than a century. It is imperative that El Paso Electric's customers have clarity as to who is acquiring the sole electric utility in our region and insight into its operations and finances. That is why I encourage the NRC to consider granting an evidentiary hearing on this matter. Such venue will give consumers the opportunity to understand who is purchasing the only energy utility in our area.
evidentiary hearing on this matter. Such venue will give consumers the opportunity to understand who is purchasing the only energy utility in our area.
It is my continued hope that all parties involved in this acquisition will be transparent as they move through the proceedings before the Nuclear Regulatory Commission.
Sincerely,
~lM~
Veronica Escobar Member of Congress CC: El Paso Electric Sun Jupiter Holdings LLC
UNITED STATES OF AMERICA NUCLEAR REGULATORY COMMISSION In the Matter of
)
)
EL PASO ELECTRIC COMPANY
)
Docket Nos. 50-528, 50-529, 50-530
)
and 72-44-LT Palo Verde Nuclear Generating Station
)
(Units 1, 2, and 3 and ISFSI)
)
CERTIFICATE OF SERVICE I hereby certify that copies of the foregoing Letter from NRC Secretary, Annette Vietti-Cook, to Congresswoman Veronica Escobar have been served upon the following persons by Electronic Information Exchange.
U.S. Nuclear Regulatory Commission Office of Commission Appellate Adjudication Mail Stop: O-16B33 Washington, DC 20555-0001 ocaamail@nrc.gov U.S. Nuclear Regulatory Commission Office of the General Counsel Mail Stop: O-14A44 Washington, DC 20555-0001 Reginald Augustus, Esq.
Tyson Campbell, Esq.
David E. Roth, Esq.
Jeremy Wachutka, Esq.
reginal.augustus@nrc.gov tyson.campbell@nrc.gov david.roth@nrc.gov jeremy.wachutka@nrc.gov U.S. Nuclear Regulatory Commission Office of the Secretary of the Commission Mail Stop: O-16B33 Washington, DC 20555-0001 Hearing Docket hearingdocket@nrc.gov Public Citizen, Inc.
215 Pennsylvania Ave., SE Washington, DC 20003 Tyson Slocum tslocum@citizen.org
[Original signed by Herald M. Speiser ]
Office of the Secretary of the Commission Dated at Rockville, Maryland, this 9th day of December, 2019.