ML20057E985

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Notification of Significant Licensing Action for Proposed Issuance of an Order Approving an Indirect License Transfer Application for Which a Hearing Has Been Requested
ML20057E985
Person / Time
Site: Palo Verde  Arizona Public Service icon.png
Issue date: 02/25/2020
From:
Office of Nuclear Reactor Regulation
To:
Arizona Public Service Co, El Paso Electric Co
SECY RAS
Shared Package
ML20057E983 List:
References
50-528-LT, 50-529-LT, 50-530-LT, 72-44-LT, EPID: L-2019-LLM-002, License Transfer, RAS 55582
Download: ML20057E985 (3)


Text

February 25, 2020 OFFICE OF NUCLEAR REACTOR REGULATION NOTIFICATION OF SIGNIFICANT LICENSING ACTION LICENSEE: Arizona Public Service Company El Paso Electric Company Palo Verde Nuclear Generating Station, Units 1, 2, and 3 License Nos. NPF-41, NPF-51, and NPF-74 and the generally licensed ISFSI Docket Nos. STN 50-528, STN 50-529, STN 50-530, and 72-44

SUBJECT:

PROPOSED ISSUANCE OF AN ORDER APPROVING AN INDIRECT LICENSE TRANSFER APPLICATION FOR WHICH A HEARING HAS BEEN REQUESTED (EPID L-2019-LLM-0002)

This is to inform the Commission that an order will be issued on or about March 2, 2020, to El Paso Electric Company (EPE) approving the indirect transfer of Renewed Facility Operating License Nos. NPF-41, NPF-51, and NPF-74 for the Palo Verde Nuclear Generating Station (Palo Verde), Units 1, 2, and 3, respectively, and the general license for the Palo Verde Independent Spent Fuel Storage Installation (ISFSI). This action is being taken in response to an application dated August 13, 2019 (Agencywide Documents Access and Management System Accession No. ML19225D197).

According to the application, EPE currently owns a 15.8 percent tenant-in-common interest and holds possession-only rights in the U.S. Nuclear Regulatory Commission (NRC) licenses. The proposed indirect license transfer would result from IIF US Holding 2 LP indirectly acquiring 100 percent of the shares in EPE. Arizona Public Service Company (APS) would continue to operate each of the Palo Verde units and the ISFSI. APS owns a 29.1 percent tenant-in-common interest and holds both operating and possession rights in the NRC licenses.

Further, APS operates each of the Palo Verde units and the ISFSI pursuant to the operating rights granted to it under the license of each Palo Verde unit. The remaining tenant-in-common co-owners that hold possession-only rights in the NRC licenses are: Salt River Project Agricultural Improvement and Power District (17.49 percent); Southern California Edison Company (15.8 percent); Public Service Company of New Mexico (10.2 percent); Southern California Public Power Authority (5.91 percent); and Los Angeles Department of Water and Power (5.7 percent). The proposed transaction implicates only an indirect upstream change in control over EPEs possession-only rights in the NRC licenses.

CONTACT: Siva P. Lingam, NRR/DORL (301) 415-1564

The proposed transaction would not involve or implicate any change in EPEs rights and obligations under any of the NRC licenses, nor would it implicate APSs or any possession-only co-owners rights and obligations under any of the NRC licenses.

On October 28, 2019, the NRC issued a notice in the Federal Register (FR) providing an opportunity to comment, request a hearing, and petition for leave to intervene on the license transfer application (84 FR 57774). In response, on November 18, 2019, Public Citizen, Inc.

filed a hearing request. The hearing request is currently pending before the Commission. The hearing, if granted, will not be completed prior to the approval of the license transfer application.

The order approving the application will include a condition that the approval of the license transfer is subject to the Commissions authority to rescind, modify, or condition the approved transfer based on the outcome of any post-effectiveness hearing on the license transfer application. See Susquehanna Nuclear, LLC (Susquehanna Steam Electric Station, Units 1 and 2), CLI-17-4, 85 NRC 59, 61 n.5 (2017); Power Auth. Of the State of N.Y. (James A. FitzPatrick Nuclear Power Plant), CLI-01-14, 53 NRC 488, 502, 55455 (2001) (citing Long Island Lighting Co. (Shoreham Nuclear Power Station, Unit 1), CLI-92-4, 35 NRC 69, 80 n.7 (1992)). The NRC did not receive any comments on the application.

In accordance with the Commissions regulations, the NRC staff notified the Arizona State officials of the proposed indirect license transfer on February 7, 2020. The officials had no comments.

ML20038A210 *via email NRR-106 OFFICE NRR/DORL/LPL4/PM NRR/DORL/LPL4/LA OGC

  • NRR/DORL/LPL4/BC NAME SLingam PBlechman JWachutka JDixon-Herrity DATE 2/13/2020 2/13/2020 2/21/2020 2/24/2020 OFFICE NRR/DORL/D NRR/D EDO NAME CErlanger HNieh (MGavrilas for) MDoane DATE 2/25/2020 2/25/2020 2/25/2020