ML20114C694
| ML20114C694 | |
| Person / Time | |
|---|---|
| Site: | Palo Verde  |
| Issue date: | 12/02/1987 |
| From: | Office of Nuclear Reactor Regulation |
| To: | |
| Shared Package | |
| ML20114C688 | List: |
| References | |
| NUDOCS 9209030109 | |
| Download: ML20114C694 (3) | |
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4*c, UNITED ST ATEs y-t NUCLEAR REGULATORY COMMISSION WA$HING TON D, C. 20b%
t SAFETY EVALUATION PY THE OFFICE OF NV"' EAR REACTOR REGULATION RELATED TO AMENDMENT NO. 1 TO FACILITY _OPEPATING LICENSE NO. NPF-74 ARl70NA PUBLIC SERVICE COMPANY, ET. AL.
pALO VERDE NUCLEAR GENERATING STATION, UNIT NO. 3 DOCKET N0. STN 50-530
1.0 INTRODUCTION
By application dated July 23, 1987, and supplemented on November 6 and N:vember 9, 1987, the Arizona Public Service Com approval for El Paso Electric Company (El Paso) pany (APS) requested to sell and lease back all or part of its ownership interest in Unit 3 of the Palo Verde Nuclear
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Generating Station.
2.0 COMMISSION ACTION On December 12, 1985, the Nuclear Regulatory Commission, uaon review of the staff's Policy Papers SECY-85-350 and SECY 85-367 whici conta ned a discussion of this type of proposed transaction, issued an Order {/
consenting to a sale and leaseback transaction for Palo Verde. Unit 1.
To provide for health and safety concerns, it required that:
(1) The lessor and anyone else who may acquire an interest under the proposed transaction be prohibited from exercising directly or indirectly any control over the licensees of Palo Verde. Unit 1.
For purpose of this condition, the limitations in 10 CFR 50.81,
" Creditor Regulations", as now in effect, and as they may be subsequently amended, are fully applicable to the named lessor and any successor in interest to that lessor as long as the license for the Palo Verde, Unit I remains in effect.
Accordinaly this financial transaction shall have no effect on the licen,se for Palo Verde. Unit I throughout the term of the license.
D Arizona Public Service Company (Palo Verde Unit 1), Docket No, STN 50-528 December 12, 1985.
9209030109 G71202 PDR ADOCK 05000530-P PDR
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(2) The Palo Verde, l' nit 1 operating license P amended to expressly require that the NRC be notified in writing) prior to any change in:
(i) the executed lease agreementsi (ii the AhPP Participation Agreement; (iii) the existing insurance policies; end (iv) eny action by the lessor or others which may have an adverse effect on the safe operation of the facility.
(3) The Palo Verde. Unit 1 license be amended to reflect the licensee's position as a lessee of the facility.
The Commission's Order authorized the sale and lease back of licensee, Public Service Company of New Mexico's interest in the Palo Verde. Unit 1 facility. Several license amendments have been issued for Palo Verde.
Units 1 and 2 to reflect approval of sale and leaseback transactions.
The present application for license amendment seeks authorizations of sale and leaseback transactions t,y El Paso of its ownership interests in Palo Verde, Unit 3.
3.0 CONTACT WITH STATE OFFICIAL The Arizona Radiation Regulatory Agency has been advised of the' proposed determination of no significant hazards consideration with regard to
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these changes. No comments were received.
4.0 ENVIRONMENTAL CONSIDERATION
The amendment only involves the administration of the credit and financial arrangements for Palo Verde. Unit 3.
The parties will enter into agree-rnents which provide for the sale and lease back of ownership shares by El Paso under terms requiring continued full control and responsibility over these ownership shares by El Paso. The lessors and anyone else who may acquire an interest under these transactions are prohibited from exercising, directly or indirectly, any control of the licensees. The amendtrents also include a reporting requirenent that the NRC must be notified in writing prior to any change in the executed lease agreements, the ANPP participation agreement, and the existing insurance policies.
The Comission has previously issued proposed findings that the amendment involves no significant hazard consideration, and there has been'no public comment on such finding. Accordingly, the amendment neets the eligibility criteria for categorical exclusion set forth in 10 CFR 51.22(c)(o).
Pursuant to 10 CFR 51.22(b) no environmental impact state-ment or environmental assessment need to be prepared in connection with the issuance of this amendment.
5.0 CONCLUSION
The staff has concluded, based on the considerations discussed above, p
that (1) there is reasonabic assurance that the health and safety of the public will not be endangered by operation in the proposed manner.
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. : x-(2) such activities will be conducted in compliance with the Comission's regulations, and (3) the issuance of this an:endment will not be inimical to the comon defense and security or to the health and safety of the public. We, therefore, concluce that the reouests are acceptable.
Principal contributor:
M. Davis and h an Lee Dated:
December 2. 1987
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