ML20114C687
| ML20114C687 | |
| Person / Time | |
|---|---|
| Site: | Palo Verde  |
| Issue date: | 12/02/1987 |
| From: | Crutchfield D Office of Nuclear Reactor Regulation |
| To: | |
| Shared Package | |
| ML20114C688 | List: |
| References | |
| NUDOCS 9209030105 | |
| Download: ML20114C687 (3) | |
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UNITED STATES NL21. EAR REGULATORY COMMISSION n
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ARIZONA PUBLIC SERVICE COMPANY, ET AL.*
DOCKET NO. STN 50-530 PALO VFRDE _ NUCLEAR GENERATING STATION, UNIT NO. 3 AMENDMENT TO FACILITY OPERATING LICENSE Artendtrent No. 1 License No. NPF-74 1.
The Nuclear Regulatory Commission (the Commission) has found that:
A.
The present amendrtent, issued in response to the July 23, 1987 application, as supplemented on November 6 and 9,1907, by the Arizona Public Service Company with respect to sale and lease-back financing transaction by El Paso Electric Company, :omplies with the standards and req)uirerrents of the Atomic Energ Act of 1954, as amended (the Act and the Commission's regulations set forth in 10 CFR Chapter 1; a.Q B.
In approving the aforementioned application, the Director of the Difice of Nuclear Reactor Regulation, by letter of December 2, 1987, stated:
This approval is sobject to the condition that the lessors and anyone else who may acquire an interest under the transactions which are the subject of this application, are prohibited from exercising directly or indirectly any control over the licensees of the Palo Verde nuclear facilities.
For purposes of this condition, the limitations in 10 CFR 50.81, " Creditor Regulations," as now in effect and as these may be subsequently amended, are fully applicable to the named lessors and any successors in interest to those lessors as long as the license for Palo Verde Nuclear Generating Station, Unit 3, remains in effect. These i
financial transactions shall have no effect on the license l.
for the Palo Verde Nuclear Generating Station, Unit 3 i
il' U he oi Er licensees are the Salt River Project Agricultural improvement and
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l Power Distr'ict, El Paso Electric Company, Southern California Edison Company, W~
Public Service Company of New Mexico. Los Angeles Department of Water and Power, and Southert California Public Power Authority.
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,e These transactions are similar to that approved by the Commission in its Order of December 12, 1985, with regard to the sale and leaseback of Public Service Company of New Mexico (FNM) interest in Palo Verde, Unit 1.
Subject to the foregoing, the Commission hereby approves the application under the conditior4s set forth in the enclosed enendment to the license for Palo Verde Unit 3.
This amendment authorizes such sale and leaseback transactions until May 30, 1988.
C.
The facility will operate in conformity with the application, the provisicw ci the Act, and tha regulations of the Comission; D.
There is reasonable assurance (1) that the activities authorized by this amendnent can be conducted without endangering the health and safety of the public, and (ii) that such activities will be conducted in compliance with the Comission's regulations; e
E.
The issuance of this amendment will not be inimical to the common defense and security or to the health and safety of the public; a
F.
The issuance of this amenoment is in accordance with 10 CFR
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Part 51 of the Comission's regulations an all appliceble requirements have been satisfied.
d G.
The present amendment authorizes any such sale and leaseback transactions made pursuant thereto until May 30, 1988.
m, 2.
Accordingly, Paragraph 2.B(6) is hereby added to read as follows:
c (6)(a)
El Paso Electric Company is authorized to transfer all or a portion of its 15.8% ownership share in Palo Verde Unit 3 and its interest in the Palo Verde common facilities to certain equity investors identified in its submissions of November 6 and 9,1987, and at the same time to lease back from such purchasers such interest sold in the Palo Verde Unit 3 facility. -The tenn of the lease is for approximately 29) years subject to a l
right of renewal. -Sale and leaseback transactions of all or a portion of El Paso's ownership share in Palo Verde, Unit 3 are hereby authorized until May 30, 1988. Any such sale and leaseback transaction is subject to the representations and conditions set forth in the aforementioned application of July 23, 1987, and the subsequent submittals dated November 6 and 9, 1987, as well as the letter of the Director of the Of fice of Nuclear Reactor pegulation dated December 2, 1987, consenting to such transactions. Specifically, the lessor and anyone else who may acquire an interest under this transaction l-L l
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3 are prohibited from exercising directly or indirectly any control over the licensees of the Palo Verde Nuclear Generatino Station, Unit 3.
For purposes of this condition the limitatieris
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- Creditor Regulations," as now in effect end as they may be subsecuend r amended, are fully applicable to the lessor and any successor in interest to that lessor as long as the license for Palo Verde. Unit 3 retrains in effect; this financial transaction shall have nc effect on the license for the Palo Verde nuclear facility throughout the term of the I
- license, l
(b)
Further, the licensees are also required to notify the NRC in writing prior to any change in:
(1) the terms or conditions of any lease 89reerrents executed as part of this transaction; (ii) the ANPP Participation Agreement, (iii) the existing property insurance coverage for the Palo Verde nuclear facility, Unit 3 as specified in licensee counsel's letter of November 26, 1985, and (iv) any action by the lessor or others that may have an adverse effect on the safe operation of the facility, 3.
This license amendment is effective as of the date of issuance.
FOR THE NUCLEAR REGULATORY COMMISSION i
,>dl A
bs-y Dennis M,.Crutchfield, Director Division of Reactor Projects - III, IV, V and Special Projects i
Date of Issuance: December 2,1987 l
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