PY-CEI-NRR-2122, Forwards Application for Amend to License NPF-58,requesting Consent of NRC to Direct Transfer of Control of Applicants Interests in License,Per NRC Administrative Ltr 96-02

Forwards Application for Amend to License NPF-58,requesting Consent of NRC to Direct Transfer of Control of Applicants Interests in License,Per NRC Administrative Ltr 96-02

ML20132C748
Person / Time
Site:	Perry
Issue date:	12/13/1996
From:	Stetz J CENTERIOR ENERGY
To:	NRC OFFICE OF INFORMATION RESOURCES MANAGEMENT (IRM)
Shared Package
ML20132C751	List: ML20132C760 PY-CEI-NRR-2122, Forwards Application for Amend to License NPF-58,requesting Consent of NRC to Direct Transfer of Control of Applicants Interests in License,Per NRC Administrative Ltr 96-02
References
AL-96-02, AL-96-2, PY-CEI-NRR-2122, NUDOCS 9612180449
Download: ML20132C748 (3)

Text

r CENTECEOR ENERGY 6670 Beta Drwe Mad Address- 216-604-9897 John P. Stetz MayheidVdlage.OH 44143 P O. Box 5000 FAX: 216404-9992 Senior Vce Presidert - Nuclear Cleveland. OH 44101-2000 Power Generaton December 13,1996 PY-CEI-NRR-2122L U. S. Nuclear Regulatory Commission Document Control Desk Washington, DC 20555 Perry Nuclear Power Plant Docket No,50-440 Application For Transfers Of Control Regarding Operating License No. NPF-58 For The Perry Nudear Power Plant Ladies and Gentlemen:

Pursuant to Section 184 of the Atomic Energy Act, as amended, Section 50.80 of Title 10 of the Code of Federal Regulations (10CFR 50.80) and NRC Administrative Letter 96-02: Licensee Responsibilities Related to Financial Oualifications, the Cleveland Electric Illuminating Company ("CEI") and Centerior Service Company ("CSC."),

licensed operators of the Perry Nuclear Power Plant (" Perry"), hereby submit the enclosed Application for Transfers of Control of the Perry Operating License No. NPF-58, on behalf of licensees CEI, CSC, Toledo Edison Company ("TE"), Ohio Edison Company, OES Nuclear, Inc., and Pennsylvania Power Company (hereinafter referred to as the " Licensee Applicants"). The Application requests the consent of the Nuclear Regulatory Commission ("NRC") to the indirect transfers of control of Licensee Applicants' interests in the Perry Operating License that will occur under a proposed merger of Centerior Energy Corporation (the parent holding company of CEI, CSC and TE) and Ohio Edison Company resulting in the formation of a new single holding company, FirstEnergy Corp. ("FirstEnergy"). Duquesne Light Company, which is also a licensed owner of the Perry Plant, is not involved in the merger.

The merger will create a stronger, more competitive enterprise led by a strong management team. It is expected to generate over $1 billion in net savings during the p h

first ten years of FirstEnergy operation, thereby enhancing the Licensee Applicants' financial resources to possess and operate Perry.

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9612180449 961213 \

PDR ADOCK 05000440 P' PDR .

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! In order to maximize the significant cost savings and efficiencies upon

consummation of the merger, the Licensee Applicants request expeditious review of this '

Application by the NRC and the issuance of a 10CFR50.80 consent letter by the NRC.

The Licensee Applicants believe that the NRC should be able to consent to the indirect

! transfers of control occasioned by the proposed merger, since the merger will have no adverse effect on either the technical management or operation of Perry; will not require a specific demonstration of financial qualifications since the Licensee Applicants' status a

} electric utilities under 10CFR50.2 will remain unchanged; and will not require any

, additional NRC antitrust review for reasons stated in the enclosed Application.

I The proposed merger requires approval of other regulatory agencies in addition to obtaining consent from the NRC. The NRC Project Manager for Perry will be kept informed of the progress made by the other regulatory agencies. The merger is expected

. to be completed by September 1,1997, enabling FirstEnergy to come into corporate r existence on'that date. Accordingly, it is requested that the NRC consent to the indirect transfer of control of the Perry license no later than September 1,1997.

If you have questions or require additional information, please contact Ms. Mary O'Reilly of the Centerior Legal Department at (216) 447-3206 or Mr. David Lewis of Shaw, Pittman, Potts and Trowbridge, at (202) 663-8474.

Very truly yours, Y

John P. Stetz JPS/MOR:mah Enclosure cc: Regional Administrator, NRC Region III PNPP NRC Senior Resident Inspector PNPP NRC/NRR Project Manager State of Ohio S:\ LEGAL \ MARY \PY.xFR. DOC 2

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4 Docket Number 50-440 License Number NPF-58 i PY-CEI-NRR-2122L I

l APPLICATION FOR TRANSFERS OF CONTROL

! REGARDING OPERATING LICENSE NUMBER NPF-58 1

1 PERRY NUCLEAR POWER PLANT UNIT NUMBER 1 3 Attached is an Application for Transfers of Control for the Perry Nuclear Power Plant

(" Perry"), Unit Number 1 Facility Operating License Number NPF-58. I This Application is submitted under cover letter Number PY-CEI-NRR-2122L on j behalf of Perry owners and licensees, The Cleveland Electric Illuminating Company, the Centerior Service Company, The Toledo Edison Company, Ohio Edison Company, OES Nuclear, Inc., and Pennsylvania Power Company.

By:

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( /s // M John P. SteESenior Vice'P7esident - Nuclear a

d Sworn to and subscribed before me this 13th day of December,1996.  !

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) Notary P 1 c, State of Dhio Y E. O'REILLY torney at Low

. Notary Public - State of Ohio My Commission has no Expiration Date Section O.R.C.147.03

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