ML20006E989
| ML20006E989 | |
| Person / Time | |
|---|---|
| Site: | Fermi  |
| Issue date: | 02/16/1990 |
| From: | Office of Nuclear Reactor Regulation |
| To: | |
| Shared Package | |
| ML20006E986 | List: |
| References | |
| NUDOCS 9002270045 | |
| Download: ML20006E989 (3) | |
Text
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j UNITED STATES
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NUCLEAR REGULATORY COMMISSION 3
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5 SAFETY EVALUATION BY THE OFFICE OF NUCLEAR REACTOR REGULATION RELATED TO AMENDMENT NO. 50 TO FACILITY OPERATING LICENSE NO. NPF-43 DETROIT EDISON COMPANY FERMI-2 i
DOCKET NO. 50-341 1
1.0 INTRODUCTION
By letter dated July 24, 1989, the Detroit Edison Company (Deco or the licensee) proposed license changes for Fermi-2 to support the proposed purchase by DECO of the interest of Wolverine Power Supply Cooperative, Inc. (Wolverine) in Fermi-2. -The requested changes to the license are administrative in nature; modifying the Operating License to reflect the proposed purchase by DECO of Wolverine's interest in Fermi-2. Deco's responsibility for the proper operation 4
and maintenance of Fermi-2 will not change.
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2.0 EVALUATION FINANCIAL QUALIFICATIONS The proposed action involves the purchase of Wolverine's 11% share in Fermi-2.
i The staff's concern with the DECO purchase of the Wolverine interest from a i
financial qualification standpoint is that the purchase not have a negative j
impact on the availability of funds to support safe plant operation and maintenance. The proposed purchase has been initiated in response to the adverse financial consequences to Wolverine from the long-term debt created by
-the cost of the Fermi-2 construction. DECO will.now be solely responsible for the cost of operation and maintenance. Deco has connitted to provide the required financial protection for public liability and property damage claims in accordance with 10 CFR Part 140. DECO will submit proof of financial protection, as required by 10 CFR 140.15, upon revision of the applicable liability insurance policies.
In accordance with the above review, the staff concludes that the proposed purchase will not effect the funds available for the safe operation of Fermi-2.
Therefore, the staff's financial qualifications concerning the proposed purchase are satisfied.
ANTI-TRUST CONSIDERATIONS In its antitrust review of nuclear power plant licensees and prospective
' licensees, the staff is concerned with activities by licensees and prospective licensees that may create or maintain inconsistencies with the antitrust laws.
This focus is the staff's concern during the construction permit review and l
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' any-subsequent antitrust reviews. However, non-construction permit antitrust reviews are not de novo reviews, in that they are focused on changed activity since the construction permit review. As required by Section 105c of the Atomic Energy Act of 1954, as amended, the staff conducts a formal antitrust operatinglicensereviewonlywhen"significantchanges"haveoccurredinthe licensee s activities since the construction permit or previous antitrust review.
The staff has extended this "significant change" concept of conducting antitrust reviews to licensing amendments involving new owners or new operators of a particular nuclear facility in question.
In its review of the instant amendment request, the staff considered the fact that no new owner or operator of Fermi-2 would result from the proposed action. Moreover, Northern Michigan Electric Cooperative _and Wolverine underwent a cont >ined antitrust review by both the Department of Justice and
.the staff in 1977 when they purchased 20 percent of Fermi-2 and an antitrust operating license "significant change" review by the staff in 1981 (the cooperatives later merged into Wolverine). The construction permit review concluded that the addition of the two cooperatives as owners of Fenni-2 would not create or maintain a situation inconsistent with the antitrust laws.
On October 30, 1981, the Director of the Office of Nuclear Reactor Regulation concluded in his operating license antitrust finding that there had been no significantchanges(sincetheconstructionpermitreview)inthelicensees' activities that would tend to create or maintain a situation inconsistent with the antitrust laws.
The staff has no information that would indicate that Wolverine was in any way adversely influenced by DECO in making its decision to abandon its ownership participation in Fermi-2. On the contrary, it appears that Wolverine decided to sell its ownership share in Fermi-2 (back to DECO) because of adverse financial )ressures associated with its long-term debt directly created by its owners 11p participation in Fermi-2.
As a result of the fact that, 1) there will be no new owner or operator of Fermi-2
[ DECO's current responsibility for the proper operation and maintenance of Fermi-2 will not change.] and 2) both Wolverine and DECO have already undergone antitrust reviews, the staff concludes that DECO's purchase of Wolverine's 11 percent owner-ship share in Fermi-2 does not represent a "significant change" and consequently, the amendment does not require a formal antitrust review by the staff.
Based on the above, the staff finds the proposed amendment acceptable from an antitrust standpoint.
The purchase of Wolverine's interest in Fermi-2 by DECO has been evaluated by the staff.
Based on the above evaluation, the staff finds the proposed purchase acceptable from both financial qualification and antitrust requirements.
e 3-3.0 ENy1RONMENTALCONSIDERATION Pursuant to 10 CFR 51.21, 51.32, and 51.35, an environmental assessment and finding of no significant impact was published in the Federal Register on February 14,1990(55FR5313).
Accordingly, based upon the environmental assessment, the Comission has determined that issuance of this amendment will not have a significant effect on the quality of the human environment.
4.0 CONCLUSION
We have 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 the Comission'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.
Principal Contributor: John Stang Date: February 16, 1990 9