ML20038A805
| ML20038A805 | |
| Person / Time | |
|---|---|
| Site: | Comanche Peak  |
| Issue date: | 09/30/1981 |
| From: | Burwell S, Youngblood B Office of Nuclear Reactor Regulation |
| To: | |
| Shared Package | |
| ML20038A802 | List: |
| References | |
| NUDOCS 8111160482 | |
| Download: ML20038A805 (7) | |
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t er-V SAFLTY EVALUATION SUPPORTING AMENDMENT NO. 4 TO CPPR-126 AND CPPR-127 INTRODUCTION On December 19, 1974, Construction Permits CPPR-126 and CPPR-127 were issued to the Texas Utilities Generating Company (TUGCO), Dallas Power and Light Company (DPL), Texas Electric Service Company (TESCO) and Texas Power and L19ht Company (TPL) for the Comanche Peak Steam Electric Station, Units 1 and 2.
Amendments 1 and 2 to these construction pemits modified the Conditions 3.E.(7) and 3.E.(8) relative to the protection of the environment. Anendments 1 and 2 were issued December 4, 1978; and November 16, 1979 respectively. Amendment 3 to these construction permits added as co-owners the Texas Municipal Power Agency (THPA) and Brazos Electric Power Cooperative, Inc. (8LPC). Amendment 3 was issued December 18, 1979.
By its letter of April 28, 1980, the Texas Utilities Generating Company requested dMendments to the construction permits to provide for transfer of ownership interests aggregating 5% from DPL to TESCO and TPL, such that each acquires an additional 2.5% undivided interest as a tenant in common without right of partition. This requested anenanent would reduce DPL's interest to 18-1/3%,
while the interest of TPL and TESCO would each-be increased to 35-5/6%.
On May 28,1981, the Texas utilities Generating Company requested amendments to the construction permits to add the Tex-La Electric Cooperative of Texas, Inc. (Tex-La) as a co-owner of the subject facilities.
Upon IRC approval, the Joint Ownership Agreement provides for transfer of a 4-1/3% ownership interest from TPL to Tex-La as a tenant in common without right of partition.
The Texas Utilities Generating Company supplemented information submitted on the May 28, 1981 request for amendments by letters dated July 27, 1981 and September 16, 1981.
On August 3,1981, the U. S. P. ural Electrification Administration issued a
$180 million loan guarantee coianitment notice to Tex-La to be used to finance the 4-1/3% undivided ownership Interest in the Comanche Peak Steam Electric Station, Units 1 and 2 and in related transmission facilities.
At tnis time the tHC staff has completed its review of all safety-significant matters related to the issuance of construction permit amendments as requested in the April 28, 1980 and Hay 28, 1981 applications.
Tnis Safety Evaluation is therefore issued in support of Amendments No. 4 to Construction Permits CPPR-126 and CPPR-127 approving the transfer of ownership interests between DPL, TESCO and TPC, and the addition cf Tex-La as a co-owner in the Comanche Peak facility.
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' Entitlement to output will correspond to ownership shares, which will be as follows:
DPL 18-1/3%
TESCO 35-5/6%
TPL 31-1/2%
TitPA 6-1/5%
BEPC 3-4/5%
Tex-La 4-1/3%
The purpose of this Safety Evaluation is to examine the impact of the proposed change in ownership shares as described above on the conclusions presented in Section 21.0 of the " Safety Evaluation of tne Coiaanche Peak Steam Electric Station, Units 1 and 2,"
issued September 3,1974, and Section 23.0 of the " Safety Evaluation Report related to the operation of Comanche Peak Steam Electric Station, Units 1 and 2, July 1981. Specifically, the evaluation will address the resultant changes or lack of cnanges:
1.
In the design of the facility or requirements for safety-related information.
2.
In the financial qualifications of the applicants; i.e., the qualifications of TESCO and TPL to undertake increased percentages of ownership of the facility and the qualifications of the proposer. new co-owner to share in the design and construction of the facility.
3.
In the conclusions concerning the common defense and security.
4.
In the conclusions concerning the health and safety of the public.
In accordance with ALAB-459 (Marble 11111) February 15, 1978 which held that co-owners will be deemed to be co-applicants, the application for amendments is construed to include Tex-La Electric Cooperative of Texas, Inc. as a co-applicant as well as a co-owner.
EVALUATION We have reviewed the applications for amendments identified above. Our review of safety-related matters and our conclusions concerning each iteia are described in the following subsections of this ' evaluation report.
Design of the Facility We have reviewed the application for amendments submitted by the letter of April 28,.1980, and find no information which leads us to conclude that the requested amendments to the construction permits will result in design changes to the facili ty. We note the above dated letters states "...the proposed amendments are pro forma,.adr.linistrative in nature and have no safety or environmental significance..." We interpret that quote to'be a statement of the applicants' intent regarding the requested action.
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3-We have also reviewed the Joint Ownership Agreements and Amendments of Joint Ownership Agreement submitted by the letter of llay 28, 1981, and find no information which leads us to conclude that the requested amendments to the construction permits will result in design changes to the facility.
In addition, the Texas Utilities Generating Company in a letter, dated September 16, 1981, states, "there will be no changes in plant design as a result of Tex-La becoming part owner of Comanche Peak."
On the basis of our review of tne applications for amendments, the Joint Ownership Agreement and Amendment of Joint Ownership Agreement and the above statenent by the Texas utilities Generating Company, we conclude that neither the proposed transfer of ownership interests between DPL, TESCO and TPL, ner the participation of the proposed new co-owner in the manner describec will result in safety-significant design changes to the facility. Further, we find that our conclusions in Sections 21.0 and our conclusions in Section 23.0 of the Safety Evaluation Report of the Couache Peak Steam Electeic Station, Units 1 and 2, will not be altered by tne issuance of the requested amendments to the construction permits.
Financial Qualifications of the Applicants The Texas utilities Generating Company submitted two separate requests for amendments to the construction permits as describe.4buve.
The NRC staff reviewed the financial qualifications of tne applicants as impa.:ted by each request in the following separate evaluations.
Readjustment of Comanche Peak Ownership Interests By letter dated April 28, 1980, Texas Utilities Generating Company (TUGCO) requested tac's approval to transfer 5 percent of the Comanche Peak ownership from Dallas Power and Light Company (DPL) to Texas Electric Service Company (TESCO) - 2.5 percent, and the Texas Power and Light Company (TPL) - 2.5 percent.
The total ownership of the station before and after the transfer would be o follows:
Current Revised Texas utilities Generating Co.
0%
0%
Dallas Powcr and Light Co.
23-1/3%
18-1/3%
Texas Power and Light Co.
33-1/3%
35-5/6%
Texas Electric Service Co.
33-1/3%
35-5/6%
Texas Hunicipal Power Agency _
6-1/5%
6-1/5%
Brazos Electric Power Coop., Inc.
3-4/5%
3-4/5%
Total 100%
100%
TUGCO, while having no ownership interest in the project, acts as agent for all the participants in matters relating to the design, Construction and operation of the project as'well as all aspects of tRC licensing and regulation.
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-- After NRC apprcval of the ownership transfer the participants will amend their
~Jo. int Ownership ' Agreement in accordance with the revised percentages. The
_ participants will continue to make periodic payments on a monthly basis for
.tneir-revised pro-rata shares of construction costs.
DPL,- as well as the two. participants ' proposing to increase their. ownership interests. (TESCO and. TPt.) are wholly-owned subsidiaries of Texas Utilities Company, a utility holding company.-- The_ financial plans of all four
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companies,-including-provisions for financing Coaanche Peak are closely intertwined and closely coordinated among these participants. Accordingly.
the proposed transfer is administrative in nature and is relatively insignificant from the fir ancial qualifications standpoint. Nonetheless a brief financial review of the conpanies proposing increased ownership shares is.useful.
Revenues / Net Income (Ilillions)
TESCO 1980
-1979 1978 1977 1976
$666/$121
$534/$86
$502/$85
$384/$68
$317/$68
.T,,P_L
-- _80 1979 1978 1977 1976 19
$992/$162
$810/$129
$743/$123
$645/$105
$494/$83 The first mortgage bonds of TERO and TFL are rated "AAA," highest quality, by both. major securities rating firms, Hoody's Investors Service, Inc., and Standard and Poor's Corporation.
In addition, both participants enjoy a very favorable economic regulatory environment which is an important factor in their. ability to finance the construction of a' utility plant.
In 'accordance with the provisions of 10 CFR 50.33(f) and Appendix C to
'10 CFR Part 50, we have concluded that TESCO and TPL are financially-
. qualified to finance the revised,- additional ownership snares in the Comanche. Peak-Steam Electric Station as described above. There-is
' reasonable assurance that TESCO and TPL can obtain the funds to finance -
- the proposed additional shares in the facility.
Financial Qualifications of Tex-La Electric Cooperative of Texas, Inc.
Summaryl a
Cy application dated May 28,.1981, the current co-owners of Comanche Peak Unit 1 & 2,_ applied to amend the construction permits to allow Texas Power
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f e and Light Company to sell a 4-1/3 percent ownership interest in the facility to Tex-La Electric Cooperative of Texas, Inc.
(Tex-La). With this sale, the ownership interests of the applicants would be as follows:
Dallas Power and Light Company 18-1/3%
Texas Electric ' Service Company 35-5/6%
Texas Power and Light Company 31-1/2%
Texas Municipal Power Agency 6-1/5%
Brazos Electric Power Cooperative, Inc.
3-4/5%
Tex-La Electric. Cooperative of Texas, Inc 4-1/3%
Tex-La is a membership generating and transmission electric cooperative recently organized under the Texas Electric Cooperative Act.
It will provide power to its seven member distribution cooperatives:
Deep East i
Texas Electric Cooperative. Houston County Electric Cooperative, Jasper-Newton Electric Cooperative, Sam Houston Electric Cooperative, Rusk County Electric Cooperative, Cherokee County Electric Cooperative and Wood County Electric Cooperative. Tex-La's service area is bordered on the East by the Texas-Louisiana state lines and extends Southwest from Dallas, Texas to just horth of Houston.
In addition to the ilay 28, 1981 application, the applicants also filed additional informatior in response to the staff's request that describes in detail the financial arrangements that have been made for the proposed 1
transfer.
Since the date of the applicants' request to amend the construction permits, Tex-La's plan for financing its full ownership share has virtually been realized. On August 3, 1981, the U.S. Rural Electrifi-cation Administration *ssued a $180 million loan guarantee commitment notice to Tex-La, an
'n* substa_ntially in excess of Tex-La's estimated total capital contrf
- the subject facility ($135 million).
Because this REA co#
for the loan guarantee is already in effect, Tex-La has satisfie<
a financial qualifications requirements, as described below. The onry remaining actions necessary to transfer the ownership interest to Tex-La are execution of loan documents, execution of joint ownership and wholesale power agreements, and issuance of MlC amendments.
MlC Financial Qualifications Requirements The NRC regulations relating to the determination of an applicant's financial qualifications are Section 50.33(f) and Appendix C to 10 CFR Part 50. These regulations state that there must be reasonable assurance that the applicant can obtain the funds to design and construct the plant including the initial fuel core.
In Public Service Company of New Hampshire, et. al. - (Seabrook Station, Units 1 anu 2) / tug 1 at 16, CLI-78-1 (1970) tne Commission interpreted
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6-the reasonable assurance standard by stating that, "... a ' reasonable assurance' does not mean a demonstration of near certainty that an applicant will never be pressed for funds in the course of construction.
It does mean that the applicant must have a reasonable financing plan in the light of relevant circumstances."
Due to the advanced state of Tex-La's financial arrangements for the full amount of its participation in Comanche Peak (i.e., receipt of the REA loan guarantee commitment notice) Tex-La has demonstrated a reasonable financing plan in the light of relevant circumstances.
Conclusion In accordance with the provisions of 10 CFR 50.33(f) and Appendix C to 10 CFR Part 50. Tex-La Electric Cooperative of Texas, Inc. has demonstrated reasonable assurance that it can obtain the funds to purchase a 4-1/3 percent ownership interest in Comanche Peak. Accordingly Tex-La is financially qualified under the provisions of the above regulations to purchase such an interest. Tex-La is required to submit copies of the executed joint ownership agreement as a condition subsequent to issuance of the construction permit amendments.
Common Defense and Security _
The application for amendment states that Tex-La is not owned, controlled or dominated by an alien, a foreign corporation or a foreign government.
In the dpplication for amendments, Tex-La agrees that it will not permit any individual to have access to Restricted Data until the Civil Service Commission Office of Personnel fianagement shall have made an investigation and a report to the IRC on the character associations and loyalty of sucn individual, and the IRC shall have determined that permitting such person to have access to Restricted Data will not endanger the co.wn defense and security. On the basis of the above statement and agreement, we conclude that the issuance of the requested amendments to the construction permits adding the above utility as co-applicant will not be inimical to the coamon defanse and security. Further, we find that our conclusion (7) regarding common defense and security in Section 21.0 of the Safety Evaluation of the Comanche Peak Steam Electric Station, Units 1 and 2 will not be altered by the issuance of the requested amendments to the construction permits.
SlHtARY OF THE SAFETY EVALUATION We have examined the impact on safety considerations of a 1ending Construction Permits CPPR-126 and CPPR-127 to readjust the ownership interests and to add IOx-La as a Co-applicant and Co-owner of undivided shares in the Comanche Peak Steam Electric Station, Units 1 and 2.: We have concluded that*
1.
The requested amendments, will not result in safety significant design changes to the facility.
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The co-applicants TESCO and TPL are financially qualifled tri finance h
the proposed additional ownership interests, and Tox-La is financially '
a qualified to participate as described in the design and constructi.on of 1
the facility; and
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The requested amendments will not endanger-the cosmon' defense and security.
p On the basis of the above conclusions, we find'that the issuance of tha requested amendments approving the trdnsfer of ownership interests between DPL, lf.5C0
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and TPL, and the admission of Tex-La as a co-applicant will not be inintical to j
the health and safety of the public, and that our conclusions regardint ?.he coamon deferise and security in Section 21.u-and $cction 23.0 of the Safety Evaluation Reports related to tne Comanche Peak Steam Electrig $tation,
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Units 1 and 2 will remain unaltered. Further, we find that tne requested amend-ments do not involve a significant hazards consideration because this action g
'I will not involve a significant increase in the probability or conseq'uences of an accident, and this aClien will not involve a signifiCant decrease in safety N
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Licensing Branch No. 1 Division of Licensing
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B. J. Youngblood, Chief Licensing Uranch ho. 1 Division of Licensing Dated: September 30,1981 2
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SAFETY EVALUATION
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5 SUPPORTING ATHDMENT NO. q f TO CFPR-126 AND CPPR-127
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INTRODUCTION On Deccabar 19, 1974, Construction Permits CPPR-126 and CPPR-127 were issued to the Texas Utilities Generating Company (TUGCO), Dallas Power and Light Company (DPL), Texas Electric Service Company (TESCO) and Texas Power and Light Company (TPL) -for the Comanche Peak Steam Electric Station, Units 1 and 2.
Amendnents 1 and 2 to these construction permits modified the Conditions 3.E.(7) and 3.E.(8) relative to the protection of the enviromient. Amendnents 1 and 2 were issued cDec'enber 4,1978; and Ibvember 16, 1979 mspectively.
Anendment 3 to these cor.struction pennits added as co-owners the Texas Municipal Power Agency (TMPA) e dnd Cra70s Electric Power Cooperative, Inc. (BEPC). Amendment 3 was issued i
December 18, 1979.
By its letter of April 28, 1980, the Texas Utilities Generating Company requested aarndnents to the construction pennits to provide for transfer of ownership interests aggregating 5% from DPL to TESCO and TPL, such that each acquires an additional 2.5% undivided interest as a tenant in common without right of parti tion. This requested amendment would reduce DPL's interest to 18-1/3%,
while the interest of TPL and TESCO would each be increased to 35-5/6%.
On May 28, 1981, the Texas Utilities Generating Company requested amendments to the construction pent.its to add the Tex-La Electric Cooperative of Texas, Inc. (Tex-La) as a co-owner of the subject facilities. Upon NRC approval, the Joint Ownership Agreement provides for transfer of a 4-1/3% ownership interest from TPL to Tex-La as a tenant in common without right of partition.
The Texas Utilities Generating Company supplemented infonnation subnitted on the May 28, 1981 request for amendments by letters dated July 27, 1981 and September 16, 1981.
On k; gust 3,1931, the U. S. Rural Electrification Administration issued a
$180 :aillion loan guarantee connitment notice to Tex-La to be used to finance the 4-1/3% undivided ownership interest in the Comanche Peak Steam Electric Station, Units 1 and 2 and in related transmission facilities.
At this time the NRC staff has completed its review of all safety-significant matters related to the issuance of construction pennit amendnents as requested in the April 28, 1980 and liay 28, 1981 applications. This Safety Evaluation is therefore issued in support of Amendnents No. 4 to Construction Pennits CFPR-126 and CPPR-127 acceptingithe transfer of ownership interests between DPL, TESCO and TPC, and the c^airrip of Tex-La as a co-owner in the Comanche Peak facility, i
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y SAFETY EVALUATION SUPPORTING A!O43fENT NO. 3 TO CPPR-126 AND CPPR-127 INTROD'JCTION On December 19, 1974, Construction Permits CPPR-126 and CPPR-127 were issued to the Texas Utilities Generating Conpany (TUGCO), Dallas Power and Light Cmipany (UPL), Texas Electric Service Company (TESCO) and Texas Powr and Light Company (TPL) for the Cmianche Peak Steaa Electric Station, Units 1 and 2.
Amendments 1 and 2 to these construction permits modified the Conditions 3.E.(7) and 3.E.(8) rela.ive to the protection of the enviroment. Amendments 1 and 2 were issued Dece.ber 4,1978; and Ibvember 16, 1979 respectively.
A7endaent 3 to these construction pemits added as co-owners the Texas Municipal Power Agency (TMPA) and Brazos Electric Pomr Cooperative, Inc. (BEPC).
Amendment 3 was issued December 18, 1979.
By its letter of April 28, 1980, the Texas Utilities Generating Company requested amend 7ents to the construction permits to provide for transfer of ownership interests aggregating SY, from DPL to TESCO and TPL, such that each acquires an additional 2.5T, undivided interest as a tenant in comnon without right of parti tion. This requested anene' ment would reduce DPL's interest to 18-1/3%,
while the interest of TFL and TESCO would each be increased to 35-5/6%.
On May 28, 1981, the Texas Utilities Generating Company requested acendnents to the construction pemits to add the Tex-La Electric Cooperative of Texas, Inc. (Tex-La) as a co-omer of the subject facilities. Upon !!RC approval, the Joint Ownership Agreement provides for transfer of a 4-1/3% ownership interest froa TPL to Tex-La as a tenant in comon without right of partition.
The Texas Utilities Generating Cmpany supplmented infomation submitted on the May 28, 1981 request for amendments by letters dated July 27,1981 and September 16, 1981.
On Augmt 3,1981, the U. S. Rural Electrification Administration issued a
$180 million loan guarantee comitment notice to Tex-La to be used to finance the 4-1/3% undivided ownership interest in the Snanche Peak Steam Electric Station, Units 1 and 2 and in related transmission facilities.
At this time the NRC staff has completed its review of all safety-significant matters related to the issuance of Construction pernit amend 7ents as requested in the April 28, 1980 and liay 28, 1931 appl ica tions. This Safety Evaluation is therefore issued in support of Amenstents No. 4 to Construction Pemits CPPR-126 and CPPR-12 yceptig the transfer of ownership interests between DPL, TESCO and TPC, and the addssion of Tex-La as a co-cwner in the Cmanche Peak facility.
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, Entitionent to output will correspond to ownership shares, which will be as follows :
OPL 18-1 /3%
TESCO 35-5/6%
TPL 31-1 /2%
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T: IPA 6-1/S%
BEPC 3-4 /5%
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The purpose of this Safety Evaluation is to examine the inpact of the proposed change in ownership shares as described above on the conclusions presented in I'Section 21.0 of the " Safety Evaluation of thelConanche Peak Stea'n Electric Station, Units 1 and 2," issued September 3,1974f Specifically, the evaluation will address the resultant changes or lack of changes:
1.
In the design of the facility or requirements for safety-related infomation
-(I tees -t-threigh-4 ).
2.
In the financial qualifications of the applicants; i.e.,
the qualifications of TESCO and TPL to undertake iiscreased percentages of ownership of the facility and the qualifications of the proposed new co-owler to share in the design and construction of the facility LitenE61 3.
In the conclusions concerning the convuon defense and securitym(Iter 7-).
4.
In the conclusions concerning the health and safety of the public Utem2).
In accordance with Al.A3-459 (thrble Hill), February 15, 1978 which held that po-. owners will be deemed to be cc-applicants, the application for amend 1ents 0
v/is construed to include Tex-La Electric Cooperative of Texas. Inc. as a co-aopliant as well as a co-owner.
EVALUATION
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We have reviewed the applications for amendaents identified above. Our review of safety-related matters ar.d our conclusions concerning each item are described i
in the following subsections of t'11s evaluation eport.
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Desiqn of th. Facility We have reviewed the application for aacnd.nents submitted by the letter of April 28, 1980, and find no infomation which leads us to conclude that the
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requested amendments to the ccnstraction permits will result in design changes to the facility. He note the above dated letters states "...the proposed amendments are pro foma, adainistrative in nature and have no safety or enviromental significance..." We interpret that quote to be a statement of i
tha applicants' intent regarding the requested action.
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.eJY 3 !!c have also reviewed the Joint Ownership Agreements and Amendments of Joint Ownerrhip Agreenent submitted by the letter of fiay 28, 1981, and find no information which leads us to conclude that the requested amen &ients to the construction pemits will result in design changes to the facility.
In addition, the Texas Utilities Generatir.g Company in a letter, dated September 16, 1981, states, "there will be no changes in plant design as a result of Tex-La becoming part owner of Conanche Peak."
On the basis of our review of the applications for anendnents, the Joint Ownership Agreement and kiendment of Joint Ownership Agreement and the abovr; statement by the Texas Utilities Generating Company, we conclude that neither the proposed transfer of ownership interests between DPL, TESCO and TPL, nor the participation of the prcposed new co-owner in the manner described will result in safety-significant design changes the facility. Further, we find _that_our_ conclusions SMR;::%in Section Ojof the Safety EvaluationTflhe Comdhe Piik"%,
' Sten Electric Station, Units 1 and 2, will not be altered by the issuance of N
{ the requested a1endments to the construction permits.
ew (P anEibancial Qualifications of the Applicants U
,3mr M'O Tne Texas Utilities Generating Company submitted two separate requests for amendnents to the construction pemits as describe above. The HRC staff reviewed the financial qualifications of the applicants as impacted by each request in the following separate evaluations.
Readjustuent of Conanche Peak Ownership Interests By letter dated April 28, 1980, Texas Utilities Generating Company (TUGCO) requested IRC's approval to transfer 5 percent of the Comanche Peak ownership frm Dallas Power and Light Company (DPL) to Texas Hactric Service Company (TESCO) - 2.5 percent, and the Texas Poier and Light Conpany (TPL) - 2.5 percent.
The total ownership of the station before and after the transfer would be as follows :
Current Revised Texas Utilities Generating Co.
0%
0%
Dallas Pober and Light Co.
23-1 /3 %
18-1/3%
Texas Power and Light Co.
33-1/3%
35-5/6%
Texas Electric Service Co.
33-1/3 %
35-5/G%
Texas Municipal Power Agency 6-1/5%
6-1/5%
Brazos Electric Pover Coop., Inc.
3-4/5%
3-4 /5%
Total 100%
100%
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_4 TUCCO, while having no ownership interest in the project, acts as agent for all the participants in matters relating to the design, construct!on and opere. tion of the project as well as all aspects of NRC licensing and regulation.
After NRC approval of the ownership transfer the participants will amend their Joint Ownership Agnement in accordance with the revised percer.tages. The participants will continue to nake periodic payments on a monthly basis for their revised pro-rata shares of construction costs.
DPL, as well as the two participants propcsing to increase their ownership interests (TESCO and TPL) are wholly-owned subsidiaries of Texas 'Jtilities Company, a utility holding co1pany.
lhe financial plans of all four coupanies, including provisions for financing Coaanche Peak are closely intertwined and closely coordinated a90ng these participants. Accordingly, jthe proposed transfer is adninistrative in nature and is relatively v insignificant from the financial qualifications stanthoint. Ihnetheless a brief financial review of the caipanies proposing increased ownership shares is useful.
Revenues /Het Income (Millions)
TESCO 1930 1979 1978 1977 1976
$666/5121
$534/586 5502/$85
$384/S68
$317/$68 TPL.
1980 1979 19/8
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$992/5162
$810/$129
$743/$123
$645/$105 S494/$83 The first nortgage bonds of TESCO and TPL are rated "AAA," highest quality, by both major securities rating firms, Moody's Investors Service, Inc., and Standard and Poor's Corporation.
In addition, both participants enjoy a very favorable economic regulatory enviromient which is an important factor in their ability to finance the construction of a utility pl ant.
In accordance with the provisions of 10 CFR 50.33(f) and Appendix C to 10 CFR Part 50, we have concluded that TESCO and TPL are financially qualified to finance the revised, additional ownership shares in the Co.aanche Peak Stea1 Electric Station as described above. There is reasonsble assurance that TESCO and TPL can obtain the funds to finance the proposed additional shares in the facility.
Financial Qualifications of Tex-La Electric Cooperative of Texas, Inc.
Sumary Rv annlication da+ed May 28. 1981. the current co-omers of Comanche Peak
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- e. arri Light Company to sell a 4-1/3 percent ownership interest in the facility to Tex-La Electric Cooperative of Texas, Inc. ( Te x '.a). With this sale, the ownership interests of the applicants would be as fClows:
Dallas Pover and Light Company 18-1/3%
Texas Electric Service Co1pany 35-5/6%
Texas Poter and Light Corpany 31-1 /2 %
Texas ihmicipcl Power Agency 6-1/5%
7 Brazos Electric Poter Cooperative, Inc.
3-4 /5%
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Tex-La E'lectric Cooperative of Texas, Inc 4-1/3 %
Tex-La is a nonbership generating and transmission electric cooperative m
recently organized under the Texas Electric Cooperative Act.
It will f
vprovide poser to its seven Edt.er distribution cooperatives: Deep East Texas Electric Cooperative, Houston County Electric Cooperative, Jasper-Newton Electric Cooperative, Sam Ibuston Electric Cooperative, Rusk County Electric Cooperative, Cherokee County Electric Cooperative and Wood County Electric Cooperative. Tex-La's service area is bordered on the East by the Texas-Leuisiana state lines and extends Southwest fron Dallas, Texas to just North of Houston.
In addition to the f4ay 28,1981 application, the applicants also filed
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/ additional infornatior in response /to the staff's request that describes in detail the financial arrangements that have been nade fcr the proposed j
transfer.
Since the date of the applicants' request to amend the ccnstruction pernits, Tex-La's plan for financing its full ownership share has virtually been realized. On August 3,1981, the U.S. Rural Electrifi-r cation Adninistration issued a $180 million loan guarantee co'nitment g
/ notice to Tex-La, an amount substantially in excess of Tex-La's estimated total capital contrioution to the subject facility ($135 million).
3 Decause this REA commitment for the loan guarantee is already in effect,
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Tex-La has satisfied NRC's financial qualifications requirenents, as described below.
The only reaaining actions necessary to transfer the
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ownership interest to Tex-La are execution of loan documents, execution of joint omership and wholesale poter agreements, and issuance of HRC araendments.
NRC Financial Qualifications Requirements
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The HRC regulations relating to the detenaination of an applicant's financial qualifications are Section 50.33(f) and Appendix C to 10 CFR Part 50.
These regulations state that there must be reasonable assurance that the applicant can obtain the funds to desiga and construct the plant including the initial fuel com.
In Public Service Corpany of New Hanpshire, et. al. - (Seabrook Station, Units 1 and 2) /14RG 1 at 18, CLI-/8-1 (lW3) the Comission interpreted
"'c 4 NRC FORM 318 410 80) NRC.4 0240 OFFICIAL. RECOFiD COPY 4 -
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[the reasonable assurance standard by stating that, 'hfa ' reasonable assurance' does not mean a denonstration of near certainty that an applicant will never be pressed for funds in the course of construction.
It does mean that the applicant
,must have a reasonable financing plan in the light of relevant circumstances."
' Due to the advancMstate of Tex-La's financial arrangements for the full amount of its participation in Conanche Peak (i.e., receipt of the REA loan guarantee comitment notice) Tex-La has demonstrated a reasonable financing plan in the light of relevant circumstances.
Concl usion In accordance with the provisions of 10 CFR 50.33(f) and Appendix C to 10 CFR Part 50, Tex-La Electric Cooperative of Texas, Inc. has demonstrated reasonable assurance that it can obtain the funds to purchase a 4-1/3 percent ownership interest in Comanche Peak. Accordingly, Tex-La is financially qualified under the provisions of the above regulations to purchase such an interest. Tex-La is required to subnit copies of the executed joint ownership agreement as a condition subsequent to issuance of the construction permit amendments.
Corrion Defense and Security The application for amerydment states that Tex-La is not outed, controlled or d&linated by an alien, a foreign corporation or a foreign government.
In the application for amendments, Tex-La agrees that_Ltaill_not nerm.it any individual t/to have access to Restricted Data.until theCCivil Service _ConinisWrtsfall Offu ep have nade an investigation and a report to the IRC on the character associations ((rw and loyalty of such individual, and the NRC shall have determined that pemitting (Maup-such person to have access to Restricted D1ta will not endanger the comon tw d defense and security. On the basis of the above statement and agreement, we conclude that the issuance of the requested amendments to the construction penut t$ adding the above utility as co-applicant will not be iniaical to the U
common defense and security. Further, we find that nur conclusion (7) regarding common defense and security in Section 21.0 of the Safety Evaluation of the Conanche Peak Steam Electric Station, Units 1 and 2 will not be altered by the issuance of the requested anend7ents to the construction peraits.
SUMmRY OF THE SAFETY EVALUATION We have examined the impact on safety considerations of amending Construction Penaits CPPR-126 and CPPR-127 to readjust the ownership interests and to add Tex-La as a co-applicant and co-owner of undivided shares in the Co,.1anche Peak Stean Electric Station, Units 1 and 2.
We have concluded that:
1.
The requested amendments, will not result in safety significant design changes to the facility, NRC FORM 318 (10/80) NRCM O 40 OFFICIAL RECORD COPY "o *-32n24
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- 2.. The co-applicants TESCO and TPL are financially qualified to finance the proposed additional ' ownership interests, and Tex-La is financially qualified to participate.as : described in the design and construction of 3
- the facility;. and 3.
The requested amendments will. not endanger the corraon defense and security.
promcy On the basi the above conclusions, we find that the issuance of the requested t/ amendments spting the transfer of ownership interests between DPL, TESCO
-and TPL and-the adraission of Tex-La as a co-applicant will not be inimical to
, the__.he archt3 Ay 5
s y(%jith and safety of the public, and that our conclusion f,.__.
. inject. ion _ll.Qtof the Safety EvaluatiorrttiTT he Cy3an:he Pea._ S_ team t
Electric Station, Units 1 and 2 will remain unaltered. Further, we find N.
w wg~.7g pecause this action will not involve a significant increase in the prob
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s McAn for consequences of an accident, and this action will not involve a significant
'MS decrease in safety nargin.
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'f M,,g Spottswood B. Burwell, Project fianager Licensing Branch No. 1 Divisica of Licensing B. J. Youngb1 cod, Chief Licensing Branch No.1 Division of Licensing Dated:
!^pt;ter
, 1981.
C FFICE k
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-.Na7 Foa 9 318 '10/801 NRCM O240 O FFICIAL' R ECOR D: COPY.
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ENVIRONMENTAL IMPACT APPRAISAL BY THE DIVISION OF LICENSING SUPPORTING AHEllDilENTS NO. 4 TO CPPR-126 MD CPPR-127 RELATING TO CHANGE IN OWNERSHIP INTEREST IN COMANCHE' PEAK STEAM ELECTRIC STATION UNIT NOS.1 AND 2 DOCKET NOS. 50-445 AND 50-446 Description of the Proposed Action By a letter, dated May 28, 1981, Texas Utilities Generating Company (TUGCO) filed a request with'the Nuclear Regulatory Commission to reflect additional ownership interest in the Coraanche Peak Steam Electric Station, Unit Hos.1 and 2 (the Station). The action proposed by the permittee is the issuance of amendments to Construction Permits CPPR-126 and CPPR-127 that would specify the Tex-La Electric Cooperative of Texas, Incorporated (Tex-La) as an additional co-owner of the Station. At this time, Station ownership rests with Dalla 3 Power & Light Company (DP&L), Texas Power- & Light Company (TPaL), and Texas Electric Service Company (TESCO), Texas Municipal Power Agency (TMPA) and the Brazos Electric Power Cooperative, Incorporated (BEPC). The amendments would reduce the TPL Interest to 31-1/2% and assign a 4-1/3% interest to Tex-La. TUCCO, the present holder of Construction Permits CPPR-126 and CPPR-127, will retain exclusive responsibility for the design, construction, operation, and maintenance of the Station, and will'act as agent for all owners in connection with all aspects of WC licensing and regulation.
The staff's Final Environmental Statement (FES) relating to construction of
-the Station was published f 3 June 1974. The Final Environmental Statement related to operation of the Station was issued in Septenber 1981.
Environmental Impact of tne Proposed Action Tex-La is a generation and transmission cooperative which has been organized to engage in rural electrification for its members, Deep East Texas Electric-Cooperative, Houston County Electric Cooperative, Jasper-Newton Electric
- Cooperative, Sem Houston Electric Cooperative, Rusk County Electric Cooperative,-
Cherokee County Electric Cooperative and Wood County Electric Cooperative.
In a letter, dated September 16,.1981, the Texas Utilities Generating Company stated, "there will beLno addition or modified transmission facilities as a result of Tex-La Electric Cooperative of Texas, Inc. (Tex-La)-becoming part owner of Comanche Peak and tnere will be no changes in plant design as a r'esult. of Tex-La becoming part owner' of Comanche Peak." -
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g 2-Conclusion and Basis for fiegative Declaration On the basis of the foregoing information, the I&lC concludes that there will be no environmental impacts resulting from the proposed action in addition to those impacts predicted and evaluated in the Cor.uission's Final Environ-mental Statements issued in June 1974 and September 1981. Having reached this conclusion, the staff has further concluded that no environment 31 impact statement for the proposed action need be prepared, and that a negative declaration to this ef fect is appropriate.
Dated: September 30, 1981
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