ML20094N177

Forwards Oh Edison Application for License Transfer in Connection W/Sale & Related Transactions, Requesting NRC Approval to Transfer Oh Edison Ownership Interest in Pnpp Unit 1 to Wholly Owned Subsidiary Oes Nuclear,Inc

ML20094N177
Person / Time
Site:	Perry
Issue date:	11/17/1995
From:	Charnoff G SHAW, PITTMAN, POTTS & TROWBRIDGE
To:	NRC OFFICE OF INFORMATION RESOURCES MANAGEMENT (IRM)
Shared Package
ML20094N181	List: ML20094N177 ML20094N195
References
NUDOCS 9511270404
Download: ML20094N177 (3)

Text

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1-1 SHAW, PITTMAN, PoTTs & TROWBRIDGE l A PARTNER $ Hap INCLUOtNG PRorE5SeONAL CORPORATIONS 2300 N STREET. N. W.

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rAesimite . M * * '* ' racsmeLa 903)02:4397 PO3) 777 9320 con 4 w cs,aNorr.p.c. November 17,1995 (202)663-8032 I

i U.S. Nuclear Regulatory Commission Document Control Desk Washington, D.C. 20555 j

] Re: Facility Operating License No: NPF-58

, Perry Nuclear Power Plant, Unit No.1 Docket No. 50-440 1

Ohio Edison's Application For License Transfer ]

In Connection With Sale And Related Transactions  !

. Gentlemen: ,

1 I am enclosing " Ohio Edison'_s Application For License Transfer In Connection  ;

With Sale And Related Transactions" concerning the Perry Nuclear Power Plant Unit j No.1. The Application requests the Nuclear Regulatory Commission ("NRC") to ap-  ;

prove a license tram,fer for part of Ohio Edison's ownership interest in Perry Unit 1 to )

, a wholly owned subsidiary, OES Nuclear Inc. ("OES"). Ohio Edison holds title to .

l 17.42% of Perry Unit 1 and leases another 12.58% of Perry Unit 1 pursuant to the sale

- and leaseback transactions previously authorized by amendment 2 to the Perry license.

The requested transfer concerns Ohio Edison's 17.42% ownership interest in Perry Unit 1.

The proposed transactions underlying the license transfer request are as follows.

By December 31,1995, Ohio Edison will sell to OES its 17.42% ownership interest in Perry Unit 1 except for the transmission facilities that are a part of Unit 1. On Janu-ary 1,1996, or immediately thereafter, OES will enter into a take or pay steam sale agreement with Ohio Edison pursuant to which Ohio Edison will purchase from OES the steam generated by the interest in Perry Unit 1 transferred under the bill of sale.

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SHAW, PITTMAN, PoTTs & TROWBRIDGE A PARTNE R$MIP INCLUDING PROFE SSION AL CORPOR ATIONS U.S. Nuclear Regulatory Commission November 17,1995 Page 2

,OES will also grant Ohio Edison the right to utilize the turbine generator ponion of Perry Unit 1 transferred to OES by the bill of sale. Both the agreement for the sale of steam and the grant of the right to use the turbine generator will run for the term of the Perry Unit 1 license through completion of plant decommissioning. Pursuant to the terms of the arrangements, Ohio Edison will have the option to convert the steam i purchase agreement and its right to utilize the Unit i turbine generator to a lease to it-self of the interest in Perry Unit 1 conveyed to OES by the bill of sale.

Ohio Edison is undertaking the above transactions in order to reduce costs in anticipation of a more competitive marketplace for electricity. The arrangements will i I

not affect Ohio Edison's license or financial responsibilities for Perry. Ohio Edison will remain a named licensee on the Perry license, as well as OES, with the antitrust conditions and other conditions remaining fully applicable to it. Further, under the proposed arrangements, Ohio Edison will make payments to OES in an amount suffi- l cient for OES to pay all of its expenses and will retain full responsibility for the costs of operating, maintaining and decommissioning the interest in Perry Unit i trans-ferred to OES, including without limitation any costs associated with meeting NRC safety and other requirements.

Cleveland Electric Illuminating Company will be filing shortly a proposed li-cense amend:nent to amend the Perry operating license to reflect the above license transfer. The proposed amendment would revise the license to include OES as a licensee.

In addition to the Application for License Transfer, I am enclosing a computer disk which has on it in Word Perfect 5.1 Attachment B (draft Federal Register Notice) and Attachment C (draft proposed order) to the Application. If you have questions or require additionalinformation, please contact me at the telephone number above or Paul Gaukler at 663-8304.

i erely, [

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Gerald Charnoff h

Enclosures

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SHAW, PITTMAN, PoTTs & TROWBRIDGE I A PARTNERSHIP INCLUDING PROFEter0NAL CORPOR AftONS U.S. Nuclear Regulatory Commission November 17,1995 ,

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cc: NRC Office of General Counsel l Perry NRC Project Manager )

Regional Administrator, NRC Region III (without computer disk) 1 Perry NRC Senior Resident Inspector (without computer disk) l l

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