ML20056G243

Requests Commission Consent to Transfer of Ownership Share of Vermont Electric Generation & Transmission Cooperative in Seabrook Station to North Atlantic Energy Corp & for Related License Amend

ML20056G243
Person / Time
Site:	Seabrook
Issue date:	08/27/1993
From:	Feigenbaum T NORTH ATLANTIC ENERGY SERVICE CORP. (NAESCO)
To:	NRC OFFICE OF INFORMATION RESOURCES MANAGEMENT (IRM)
References
NYN-93118, NUDOCS 9309020307
Download: ML20056G243 (14)

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Odii Se?a'b%fus03874 Telephone (603)474 9521 j Facsimile (603)474-2987 Energy Service Corporation Ted C. Feigenbaum Senior Vice President and Chief Nuclear Officer NYN- 93118 August 27,1993 United States Nuclear Regulatory Commission Washington, D.C. 20555 Attention: Document Control Desk

Reference:

Facility Operating License No. NPF-86, Docket No. 50-443

Subject:

Request for Commission Consent to the Transfer of the Ownership Share of Vermont Electric Generation and Transmission Cooperative, Inc. in Seabrook Station to the Nonh Atlantic Energy Corporation and for the Related License Amendment Gentlemen:

North Atlantic Energ) Jervice Corporation (North Atlantic), acting for itself and as agent for the Joint Owmers of Seabrook Station, Unit No.1, hereby requests, pursuant to 10 CFR 50.80, Commission ,

consent to the transfer of the Vermont Electric Generation and Transmission Cooperative, Inc.'s (VEG&T)

O.41259% undivided ownership interest in Seabrook Station to Nonh Atlantic Energy Corporation  ;

(NAEC).

Since the Joint Owners of Seabrook Station are listed on the NRC Operating License, NPF-86 as amended, North Atlantic also requests that, in conjunction with its consent to the transfer of the ownership interest, the Commission issue an amendment to the Operating License, under the provision of 10 CFR 90, deleting VEG&T as one of the Joint Owners.

The transfer of VEG&T's ownership share to NAEC will consummate a settlement entered into i by VEG&T and PSNH in connection with the resolution of cenain claims made by VEG&T against PSNH f in PSNH's bankruptcy proceeding. NAEC, which already owns a 35.56942 % undivided ownership interest in Seabrook Station is, like VEG&T, a pany to the Agreement for Joint Ownership, Construction and Operation of Seabrook Station which governs the relationships among the various Joint Owners. That agreement will be amended to reflect NAEC's acquisition of VEG&T's ownership share and its related obligations. However, the designation of North Atlantic as the sole operator of Seabrook Station will be unchanged by the requests made herein. The transfer, therefore, will have no impact on the operation of -

Seabrook Station.

l l Since NAEC is a wholly-owned subsidiary of Nonheast Utilities (NU), its acquisition of VEG&T's l share of Seabrook Station, in combination with The Connecticut Light and Power Company's (CL&P) l share, will increase the total ownership interest of NU subsidiaries in Seabrook Station from 39.62927%

l to 40.04186%. Other than this small increase in ownership, however, the transfer will not convey to NU l any additional rights or authority with respect to the operation of Seabrook Station. NU will have no

, additional voting rights on the Executive Committee as a result of the increased ownership.

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9309020307 930827 p member f the Northeast Utilities system ,

I i PDR ADOCK 0S000443 Q P PDR J

. i United States Nuclear Regulatory Commission August 27,1993 Attention: Document Control Desk Page two  ;

Commission approval of the transfer is requested by October 15, 1993. The transfer will be  !

implemented upon receipt of all required approvals which, in addition to the NRC, include the Neiv Hampshire Public Utility Commission, the Fede al Energy Regulatory Commission (FERC), and the Rural ,

Electrification Administration (REA).

Accordingly, North Atlantic hereby submits for Commission approval, as Enclosures 1 and 2,  !

requests for the transfer of VEG&T's ownership share in Seabrook Station to NAEC and the amendment to the Operating License. If you have any questions on this subject, please call Mr. Teny L. Harpster, Director of Licensing Services, at (603) 474-9521, extension 2765.

Very truly yours, ,

Ted C. Fei > aum ,

TCF:JBH/act Enclosure cc: Mr. Thomas T. Martin Regional Administrator U. S. Nuclear Regulatory Commission i Region 1 l 475 Allendale Road King of Prussia, PA 19406 l

Mr. George L. Iverson, Director Office of Emergency Management State Office Park 107 Pleasant Street Concord, NH 03301 Mr. Alben W. De Agazio, Sr. Project Manager Project Directorate 1-4 Division of Reactor Projects U.S. Nuclear Regulatory Commission Washington, DC 20555 Mr. Noel Dudley NRC Senior Resident inspector P.O. Box 1149 Scabrook, NH 03874

i North Atlantic August 27.1993 l

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ENCLOSURE TO NYN-93118

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REQUEST FOR COMMISSION CONSENT TO THE TRANSFER i OF THE OWNERSHIP SHARE OF VERMONT ELECTRIC GENERATION AND TRANSMISSION COOPERATIVE, INC. IN SEABROOK STATION TO NORTH ATLANTIC ENERGY CORPORATION l l l l

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' l. PURPOSE OF TRANSFER i

The transfer will allow Nonh Atlantic Energy Corporation (NAEC), a wholly-owned subsidiary of Northeast Utilities (NU) and a holder of a 35.56942 % interest in Seabrook Station, to acquire the 0.41259% interest in Seabrook Station currently held by Vermont Electric Generation and Transmission l Cooperative, Inc. (VEG&T). It will consummate a settlement entered into in connection with the l

resolution of certain claims made by VEG&T against Public Sen ice Company of New Hampshire (PSNii) in PSNil's bankruptcy proceedings.

II. NATURE OF TiiE TRANSACTION l A. Background  ;

VEG&T is a Vermont electric cooperative formed in 1979 for the sole purpose of holding the generation  ;

and transmission assets of Vermont Electric Cooperative, Inc., a rural electric cooperative formed in 1938 to provide electric sen ice to rural areas of northern and southern Vermont. VEG&T acquired its mterest  !

in Seabrook Station in 1984. i l

in 1990, VEG&T filed a claim against PSNil with the Bankruptcy Coun which was then hearing PSNil's  !

petition for reorganization under Chapter 11 of the Bankruptcy Code. The claim sought damages for harm which VEG&T alleged it had incurred as a result of PSNil's mismanagement of the construction of Seabrook Station while it had been the managing agent.

i in Nosember,1990, PSNH and VEG&T reached a settlement of the claim which included an agreement  ;

by PSNH or its designee to purchase VEG&T s share of Seabrook Station (subject to receipt of all regulatory approvals) and a discharge of VEG&T from all liabilities to be incurred with respect to Seabrook. In December,1990, the Bankruptcy Coun issued an order approving a stipulation that PSNH  !

and VEG&T had filed describing the settlement.

! In June,1992, in accordance with the Plan of Reorganization for PSNH confirmed by the Bankruptcy Court, NU acquired PSNil in a merger transaction and, after receipt of NRC approval, NAEC acquired l PSNH's interest in Seabrook Station. PSNH is obligated under the Seabrook Power Contract to purchase j

! from NAEC all of the electric power that NAEC receives from its current 35.56942% Seabrook interest.  ;

As the successor to PSNH's interest in Seabrook Station, NAEC has been designated to purchase the VEG&T interest in Seabrook Station. NAEC and PSNH propose to enter into an agreement with respect to the VEG&T interest equivalent in all material respects to the Seabrook Power Contract. PSNH will, therefore, be unconditionally obligated to buy all of NAEC's share of the capacity and output of NAEC's Seabrook interest including that acquired by NAEC through the purchase of VEG&Ts interest.

H. Desirability of the Transfer NAEC's acquisition of the VEG&T interest is the final step in the resolution of PSNH's bankruptcy. As a result of the Bankruptcy Coun order, PSNH or its designee is under a legal obligation to effect the acquisition. In addition, the acquisition will eliminate the problems associated with VEG&T's failure, since March 1986, to meet all of its Seabrook Station financial obligations and will decrease the related administrative costs.

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' The transfer will have no effect on the operation of Seabrook Station. As the sole entity authorized by i the Operating License to operate, manage and maintain Seabrook Station, North Atlantic's responsibilities, l

capabilities and authority will be unchanged by this transfer.  ;

i For the above reasons, this transfer will have no adverse affect on the public health and safety and is in  !

the public interest.

I 111. 10 CFR 50.33 GENERAL INFORMA110N I

A. Name and Address  !

l Nonh Atlantic Energy Corporation f 1000 Elm Street Manchester NH 03105

! B. Description of Business i N \EC is a w holesale generating company and a wholly-owned public utility subsidiary of NU under New llampshire law. It is regulated by the Federal Energy Regulatory Commission and has as its sole business the ownership of its Seabrook Station interest and the sale of the electric power and capacity represented  ;

thereby to PSNH.  !

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l New llampshire f D. Principal Place of Business I l l Manchester, New Hampshire ,

E. Oryanization and Management of NAEC All of the directors and principal officers of NAEC are citizens of the United States. Their names and addresses are as follows-I Directors William B. Ellis John B. Keane Ted C. Feigenbaum Bernard M. Fox Frank R. Locke John F. Opeka John P. Cagnetta Robert E. Busch The address for all of the above directors is North Atlantic Energy Corporation, clo Northeast Utilities Service Company, P.O. Box 270, Hartford, Connecticut 06141-0270.

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i i Officers l I William B. Ellis Bernard M. Fox John F. Opeka  !

Roben E. Busch John P. Cagnetta Frank R. Locke l C. Thayer Browne John J. Roman Tod O. Dixon  !

Cheryl R. Grise Barry Ilberman Francis L. Kinney  ;

Keith R. Marvin Wayne D. Romberg Robert P. Wax j Eric A. DeBarba C. Frederick Sears Theresa A. Allsop  ;

John B. Keane Robert C. Aronson Joseph F. Deegan i Ted C. Feigenbaum John W. Noyes Patricia R. McLaughlin  !

Bruce F. Garelick Pierre O. Caron Mark A. Joyce i The address for all of the abose officers is North Atlantic Energy Corporation, c/o Nonheast Utilities Service Company, P.O. Box 270,11artford, Connecticut 06141-0270. i F. Applicable Regulatory Agencies 1

The following regulatory agencies, in addition to the Commission, havejurisdiction over NAEC:

New 11ampshire Public Utilities Commission  ;

8 Old Suncook Road Concord, New Hampshire 03301-5185 ,

i Federal Energy Regulatory Commission  !

825 North Capitol Street, NE  ;

Washington, D.C. 20426  ;

Securities and Exchange Commission {

. 450 Fifth Street, NW t l Washington, DC 20549 y

r l G. Trade and News Publications  !

l The following publications circulate in the general area of Seabrook: l l

The Union Leader i I

! P.O. Box 9555 Manchester, New Hampshire 03108-9555  !

I The Boston Globe P.O. Box 2378 l I Boston, Massachusetts 02107-2378  !

II. Restricted Data i l

This Application does not contain any Restricted Data or other defense information, and it is not expected l

! that any such information will become involved in the licensed activities. Ilowever, in the event that such l

information does become involved North Atlantic agrees that it will appropriately safeguard such information and will not permit any individual to have access to Restricted Data until the OfIice of Personnel Management shall have made an investigation and report to the NRC on the character, i

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' associations and loyalty of such individual, and the NRC shall have determined that permitting such person  ;

to has e access to Restricted Data will not endanger the common defense and security of the United States.

IV. 10 CFR 50.33 FINANCIAL QUALIFICATIONS t NAEC is an electric utility under New Ilampshire law whose wholesale rates are regulated by the Federal .l Energy Regulatory Commission (FERC) under federal law. Therefore, in accordance with 10 CFR i 50.33(0, no finding of financial qualification is necessary.  ;

l V. 10 CFR 50.34 INFORMATION 10 CFR {50.34(b)(7) requires information describing the technical qualifications of the applicant ;c, engage l in the proposed activity. The Managing Agent Operating Agreement (MAOA), which was entered into by the Joint Owners pursuant to the Joint Ownership Agreement (JOA) and by which NAEC is bound, provides that North Atlantic is responsible for the management, operation and maintenance of Seabrook.

Amendment No.10 to the Operating License contains the Commission's findings that North Atlantic is l technically qualified to perform those responsibilities. NAEC's acquisition of VEG&T's Seabrook interest will not change North Atlantic's role as managing agent. Since NAEC has no responsibility for the  :

management, operation or maintenance of Seabrook, it does not need to demonstrate any technical i qualifications. l l

VI. 10 CFR 50.33a INFORMATION (ANTITRUST CONSIDERATIONS) i Pursuant to Section 105c of the Atomic Energy Act of 1954 as amended and the Commission's rules and regulations, the staff conducted an antitrust review in connection with the application for an operating license and concluded that there had been no significant changes since completion of the previous review i performed in connection with the construction permit. The NRC Staff conducted another antitrust review i in support of Amendment 11 to the Seabrook Station Operating license which authorized the transfer of i PSNil's 35.56942% ownership share to NAEC. .As a result of that review, the Director, Nuclear Reactor l Regulation found that NAEC's acquisition of this ownership interest did not involve a significant antitrust- I related change. l After the transfer of ownership proposed herein, NAEC will have an increased interest in Seabrook Station I that amounts to less than 5 megawatts of additional electrical output. The substance of the contemplated l transfer, therefore, involves no significant change of entitlement to Seabrook Station's capacity and energy  !

and no funher antitrust review by the NRC is either required or appropriate.

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! North Atlantic

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ENCLOSURE 2 to NYN-93118 REQUEST FOR COMMISSION APPROVAL OF .'N AMENDMENT TO OPERATING LICENSE NPF - 86 l TO REMOVE VEG&T FROM THE LIST OF JOINT OWNERS  :

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~ 1. INTRODUCTION North Atlantic, for itself and on behalf of the Joint Owners, hereby requests that the Commission, upon  ;

approval of the request in Enclosure 1 for transfer of control of Vermont Electric Generation and  :

Transmission Cooperative, Inc.'s (VEG&T) ownership share in Seabrook Station to North Atlantic Energy l Corporation (NAEC), issue an amendment to Seabrook Station's Operating License (NPF-86) that reflects that transfer by deleting the name of VEG&T from the list of Joint Owners. A proposed form of the amendment is provided as Attachment I to this Enclosure.

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11. PUBLIC HEALTil, SAFETY AND WELFARE CONSIDERATIONS i

The proposed license amendment reflects a minor change in the ownership shares of Seabrook Station.

It does not affect the physical configuration of the facility and does not affect the operation, management  ;

i and maintenance of the plant. As a result, the proposed 'icense amendment will have no impact on the public health, safety and welfare.  :

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'i Ill. NO SIGNIFICANT HAZARDS ANALYSIS This amendment would be a change to the license that reflects a minor adjustment in ownership shares  ;

among co-owners already shown on the license. Such a change is one of the examples of changes cited  ;

by the Commission,in the Supplementary information accompanying issuance of 10 CFR 50.92 (48 FR t 14870, April 6,1983), as an example of an amendment not likely to ii.volve significant hazards i i considerations. Applying the three standards set forth in 10 CFR 50.92, the proposed amendment involves l no significant hazards consideration as follows: l l

A. The proposed change will not involve a significant increase in the probability or consequences of  :

i an accident previously evaluated. As a result of the proposed license amendment, there will be no physical change to the Seabrook facility, and all Limiting Conditions for Operation, Limiting Safety System Settings and Safety Limits specified in the Technical Specifications will remain unchanged. Also, the Seabrook Quality Assurance Program, and the Seabrook Emergency Plan, l Security Plan and Operator Training and Requalification Program will be unaffected.

B. The proposed amendment will not create the possibility of a new or different kind of accident from any accident previously evaluated. The proposed amendment will have no effect on the physical configuration of Seabrook or the manner in which it will operate. The Seabrook plant design and design basis will remain the same. The current plant safety analyses will therefore remain complete and accurate in addressing the design basis events and in analyzing plant response and consequences.

The Limiting Conditions for Operation, Limiting Safety System Settings and Safety Limits specified in the Technical Specifications for Seabrook are not affected by the proposed license amendment. As such, the plant conditions for which the design basis accident analyses have been performed will remain valid. Therefore, the proposed license amendment cannot create the possibility of a new or different kind of accident from any accident previously evaluated.

C. The proposed amendment will not involve a significant reduction in a margin of safety. Plant safety margins are established through Limiting Conditions for Operation, Limiting Safety System Settings and Safety Limits specified in the Technical Specifications. Since there will be no change to the physical design or operation of the plant, there will be no change to any of these

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margins. Thus,the proposed license amendment will not involve significant reduction in a margin  ;

l of safety.

Based upon the analyses and description of the transaction provided herein, the proposed license amendment only reflects a ministerial change in the list of Joint Owners, and will not in /olve a significant l l increase in the probability or consequences of any accident previously evaluated, create the possibility of {

l a new or diffemnt kind of accident from any accident pmviously evaluated, or involve a reduction in a ,

margin of safety. As a result, the proposed change meets the requirements of 10 CFR 50.92(c):ind does  !

l l not involve a significant hazards consideration.

IV. ANTITRUST CONSIDERATIONS j The infonnation contained in Enclosure 1,Section VI hereof is incorporated herein by reference. l i

V. ENVIRONMENTAL CONSIDERATIONS The proposed amendment will not result in aay change in the types, or any increase in the amounts, of I any efiluents that may be released offsite, and there will be no increase in individual or cumulative l l occupational radiation exposure. Accordingly, pursuant to 10 CFR {51.22(c)(9), the proposed Operating l l License amendment is categorically excluded from the need for an environmental assessment or an  !

environmental impact statement and special circumstances do not exist to othenvise require such an  !

assessment or statement. Alternatively, Nonh Atlantic herein requests that the Commission issue and  !

publish a finding of no significant impact pursuant to 10 CFR @ 51.32 and 51.35. l l  !

i VI. COMMITTEE REVIEW i The Station Operation Review Committee and the Nuclear Safety Audit Review Committee have reviewed l the proposed amendment as required by Section 6 of the Seabrook Technical Specificatioas and have i recommended approval to North Atlantic's executive management. A copy of this has also been provided i to the State of New HampsEre.

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Nonh Atlantic l August 27,1993 I

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ATTACHMENT 1 i

i TO ENCLOSURE 2 NYN-93118 l l

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PROPOSED FORM OF LICENSE AMENDMENT '

NORTil ATLANTIC ENERGY SERVICE CORPORATION et al' DOCKET NO., 50-443 SEABROOK STATION, UNIT NO.1 AMENDMENT TO FACILITY OPERATING LICENSE  ;

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i Amendment No. _

License No. NPF-86 .,

1. The Nuclear Regulatory Commission (the Commission or the NRC) has found that: l A.

The application for amendment filed by North Atlantic Energy Service Corporation, actmg for itself and as agent and representative of the 12 utilities listed below, hereinafter  ;

referred to as licensees, dated August 16, 1993 complies with the standards and i requirements of the Atomic Energy Act .of 1954, as amend (the Act), and the  !

Commission's mies and regulations set fonh in 10 CFR Chapter I; B. The facility will operate in conformity with the application, the provisions of the Act, and f the rules and regulations of the Commission; l

I C. There is reasonable assurance: (i) that the activities authorized by this amendment can be conducted without endangering the health and safety of the public, and (ii) that such {

activities will be conducted in compliance with the Commission's regulations set fonh in j 10 CFR Chapter I.  ;

l i i D. The issuance of this amendment will not be inimical to the common defense and security or to the heahh and safety of the public; and  !

t E. The issuance of this amendment is in accordance with 10 CFR Pan 51 of the .

Commission's regulations and all applicable requirements have been satisfied.

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2. Accordingly, the license is amended to reflect that the Nonh Atlantic Energy Corporation has  !

acquired all of the 0.41259 % Ownership Share of the Vermont Electric Generation and i Transmission Cooperative, Inc. in the facihty.  ;

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a) The footnote on page 1 of the license shall read:

" North Atlantic Energy Service Company (NAESCO) is authorized to act as agent for the:

North Atlantic Energy Company, Canal Electric Company, The Connecticut Light and Power Company, EUA Power Corporation, Hudson Light & Power Department, Massachusetts Municipal Wholesale Electric Company, Montaup Electric Company, New l

North Atlantic Energy Service Corporation is authorized to act as agent for: Nonh Atlantic Energy Corporation, Canal Electric Company, The Connecticut Light and Power Company, EUA Power Corporation, Hudson Light & Power Depanment, MassachusettsMunicipal Wholesale Electric Company, Montaup Electric Company, New England Power Company, New Hampshire Electric Cooperative, Inc.,

Taunton Municipal Light Plant, The United illuminating Company, and Vermont Electric Generation and Transmission Cooperative, Inc., and has exclusive responsibility and control over the physical construction, operation and maintenance of the facility.

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England Power Company, New 11ampshire Electric Cooperative, Inc., Taunton Municipal Light Plant, and The United Illuminating Company, and has exclusive responsibility and control over the physical construction, operation and maintenance of the facility."

A copy of the afTected page of the license, as amended, is attached.

b) The last page of the license shall be marked:

' Revised: ,1993 l l 3. This license amendment is efTective as ofits date ofissuance and shall be implemented within 180 l l days. l' l

FOR Tile NUCLEAR REGULATORY COMMISSION

! l Date of issuance: ,1993 j 1

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. Attachment l i

l UNITED STATES l NUCLEAR REGULATORY COMMISSION j WASIIINGTON, D.C. 20555 NORTil ATLANTIC ENERGY SERVICE COMPANY. ET AL' i DOCKET NO. 50-443 SEABROOK STATION. UNIT NO.1 ,

l FACII.ITY OPERATING IICENSE '

i License No. NPF-86 i

1. The Nuclear Regulatory Commission (the Commission) has found that: l A. The application for a license filed by the Public Service Company of New flampshire, acting -!

i for itself and as agent and representative of the utilities listed in the footnote below, and for the North Atlantic Energy Service Company (NAESCO), all of whom are hereafter referred to as licensees, complies with the standards and requirements of the Atomic Energy Act of l 1954, as amended (the Act), and the Commission's regulations set fonh in 10 CFR Chapter l I; and all required notifications to other agencies or bodies have been duly made; j l

1 B. Construction of the Seabrook Station, Unit No.1 (the facility) has been substantially I completed in conformity with Construction Permit No. CPPR-135 and the application, as amended, the provisions of the Act, and the regulations of the Commission; C. The facility will operate in conformity with the application, as amended, the provisions of the Act, and the regulations of the Commission (except as exempted from compliance in Section 2.D below);

D. There is reasonable assurance: (i) that the activities authorized by this operating license can be conducted without endangering the health and safety of the public, and (ii) that such activities will be conducted in compliance with the Commission's regulations set forth in 10 CFR Chapter I (except as exempted from compliance in Section 2.D below); I l

E. North Atlantic Energy Service Company is technically qualified to engage in the activities authorized by this license in accordance with *- Commission's regulations set forth in 10 l CFR Chapter I;  ;

' North Atlantic Energy Service Company (NAESCO) is authorized to act as agent for the: North Atlantic Energy Company, Canal Electric Company, The Connecticut Light and Power Company, EUA Power Corporation, iludson Light & Power Depanment, Massachusetts Municipal Wholesale Electric Company, Montaup Electric Company, New England Power Company, New Hampshire Electric Cooperative, Inc.,

Taunton Municipal Light Plant, and The United Illuminating Company, and has exclusive responsibility and control over the physical construction, operation and maintenance of the facility.

AMENDMENT NO.

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