ML20154F477

Summary of 980917 Meeting W/Gpu Nuclear Inc,Amergen & NRC in Rockville,Md Re Sale & License Transfer of Three Mile Island Nuclear Genrating Station,Unit 1.List of Attendees,Copy of Licensee Handout & Copy of Meeting Transcript Encl

ML20154F477
Person / Time
Site:	Three Mile Island
Issue date:	10/05/1998
From:	Colburn T NRC (Affiliation Not Assigned)
To:	NRC (Affiliation Not Assigned)
Shared Package
ML20154F482	List: ML20154F477 ML20154G294
References
NUDOCS 9810090241
Download: ML20154F477 (19)

Text

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pog g k UNITED STATES

.g j NUCLEAR REGULATORY COMMISSION g WASHINGTON, D.C. 3000H001 g*****,/g October 5, 1998 LICENSEE: GPU Nuclear, Inc.

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FACILITY: Three Mile Island Nuclear Generating Station, Unit No.1 (TMI-1)

SUMMARY

OF SEPTEMBER 17,1998, MEETING WITH GPU NUCLEAR, INC.,

AMERGEN, AND NRC STAFF REGARDING SALE AND LICENSE TRANSFER OF THREE MILE ISLAND NUCLEAR GENERATING STATION, UNIT NO.

1 (TMI-1) 4 On September 17,1998, a public meeting was held at the U. S. Nuclear Regulatory Commission (NRC) with GPU Nuclear, Inc., (GPUN or the licensee) and AmerGen (formed by PECO and

.. British Energy), the prospective licensee which has entered into a letter of intent to negotiate an agreement for the purchase of TMI-1. The meeting was held at NRC headquarters. The purpose of the meeting was to discuss the status of the sale and proposed license transfer of the TMI-1 Operating License No. DPR-50 to the prospective owner, AmerGen. The meeting was transcribed. Enclosure 1 is a list of attendees. Enclosure 2 is a copy of the licensee's handout used at the meeting. Enclosure 3 is a copy of the meeting transcription.

After the licensee, AmerGen, and the NRC senior staff members provided opening remarks, the

, licensee and AmerGen provided a summary of the terms of the TMI-1 sale, and a discussion of the content of the proposed license transfer and amendment application, including ownership and control of AmerGen, maintaining continuity of operations at TMI-1, AmerGen technical and financial qualifications, and other required regulatory approvals. The licensee stated that there would be no environmentalimpact associated with the sale and license transfer and that since

' TMI-1 was a Section 104 plant, no antitrust review was required. The licensee provided a discussion of the level of detail to be included in its application including a description of supporting appendices and exhibits such as annual reports for PECO and AmerGen, financial projections, a legal analysis of foreign ownership issues, and conforming amendments and safety 1

analyses. The licensee also provided its proposed schedule for the sale and transfer activities.

4 It expects to submit an application by October 16,1998.

4 The NRC staff provided comments on the content of the proposed application with respect to the

~ technical and financial qualifications issues and suggested some additional levels of detail for the supporting information. The staff also acknowledged the TMI-1 status as a Section 104 plant and that it would be excluded from antitrust considerations under the Atomic Energy Act for this proposed licensing action.

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ADOCK 05000289 PDR 4

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Three Mile Island Nuclear Station, Unit No.1 cc: i l Michael Ross Robert B. Borsum l- Director, O&M, TMl B&W Nuclear Technologies

! GPU Nuclear, Inc. Suite 525 P.O. Box 480 1700 Rockville Pike '

- Middletown, PA 17057 Rockville, MD 20852 John C. Fomicola William Domsife, Acting Director Director, Planning and Bureau of Radiation Protection Regulatory Affairs Pennsylvania Department of GPU Nuclear, Inc.

Environmental Resources 100 Interpace Parkway P.O. Box 2063 Parsippany, NJ 07054 Harrisburg, PA 17120 Jack S. Wetmore Dr. Judith Johnsrud

~,, Manager, TMl Regulatory Affairs National Energy Committee GPU Nuclear, Inc. Sierra Club P.O. Box 480 433 Orlando Avenue Middletown, PA 17057 State College, PA 16803 Emest L. Blake, Jr., Esquire Mr. James W. Langenbach, Vice President Shaw, Pittman, Potts & Trowbridge and Director- TMI-1 2300 N Street, NW. GPU Nuclear, Inc.

Washington, DC 20037 P.O. Box 480 Middletown, PA 17057 I Chairman Board of County Commissioners Mr. Eric Epstein of Dauphin County TMI Alert Dauphin County Courthouse 315 Peffer Street l Harrisburg, PA 17120 Harrisburg, PA 17102 l

l Chairman l Board of Supervisors of LondonderryTownship R.D. #1, Geyers Church Road Middletown, PA 17057 Wayne L. Schmidt l Senior Resident inspector (TMI-1)

U.S. Nuclear Regulatory Commission P.O. Box 219 l Middletown, PA 17057 Regional Administrator, Region i U.S. Nuclear Regulatory Commission 475 Allendale Road King of Prussia, PA 19406

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The staff, AmerGen, and the licensee all agreed that frequent communication will be needed  ;

during the review of the application in order for the review to remain on schedule. The licensee, AmerGen, and the NRC senior staff members provided closing remarks and the meeting was concluded.

Original signed by Timothy G. Colburn, Senior Project Manager Project Directorate 1-3 Division of Reactor Projects -l/ll Office of Nuclear Reactor Regulation Docket No.' 50-289

Enclosures:

1. List of attendees

2. Licensee /AmerGen Handout

3. Meeting Transcript cc w/ enclosures: See next page DISTRIBUTION:

HARD COPY E-MAIL Docket File - SCollins/FMiraglia (SJC1/FJM) CHehl, (CWH)

PUBLIC BBoger (RPZ) BMcCabe (BCM)

OGC JZwolinski(JAZ) DScrenci(DPS)

PDI-3 Rdg. JBongarra (JXB) LChandler (LJC)

ACRS TColburn (TGC) RGallo (RMG)

BBuckley (BCB) TMartin (e-mail to SLM3) TEssig (THE)

RWood (RSW1) PEselgroth (PWE) RArchitzel (REA)

DMatthews (DBM) TClark (TLC 1) AMcKeigney (AXM1)

SHom (SRH) MDavis (MJD1)

MDusaniwskys (MAD 1)

DOCUMENT NAME: G:\COLBURN\TMl0917.mts

. To receive a copy of this document, Indicate in the box: "C" = Copy withoutpttach nt/ enclosure "E" = Copy with cttachment/ enclosure "N" = No copy ,, ,, , ,p i [ l 0FFICE POI 3/PM g_ l PDI 3/LA_, p ry lC CGC N(4h3M SGE13% )(;V l PDI- % ,_- r E NAME TColburn ' [W TClark. )/\ V $Hom MY RWodd v CTy'Wr/

DATE 4 / 3D/98 9 / 4 9 /98 f) 'Z,. /98 /D / J /98 O /(-> /98 OFFICIAL RECORD COPY

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SEPTEMBER 17,1998 MEETING WITH GPU NUCLEAR INCORPORATED AND AMERGEN SALE AND LICENSE TRANSFER OF THREE MILE ISLAND UNIT-1 ATTENDEES Name Affiliation T. Colburn NRC/NRR/DRPE/PDI-3 L. Chandler NRC/OGC P. Eselgroth NRC/RI R. Wood NRC/NRR/DRPM/PGEB D. Matthews NRC/NRR/DRPM S. Hom NRC/OGC '

.. B. Buckley NRC/NRR/PDl-2 J. Bongarra NRC/NRR/DRCH/HOHB R. Architzel NRC/NRR/DRPM/PGEB A. McKeigney NRC/NRR/DRPM/PGEB -

M. Davis NRC/NRR/DRPM/PGEB M. Dusaniwskys NRC/NRR/DRPM/PGEB D. Carl GPUN/Sr. Public Affairs Representative D. Distel GPUN/ Licensing J. Fomicola GPUN/ Director Nuclear Safety Assessment D. Brauer GPUNNP Corporate Restructure J. Langenbach GPUNNP and Director TMI J. Wetmore GPUN/TMI Nuclear Safety and Licensing Manager E, O'Donnell GPUN/ Director - TMI-1 Divestiture J. Young AmerGen J. William Jones AmerGen S. Ross AmerGen

- E. Cullen AmerGen/PECO Energy J. Cotton AmerGen/PECO Energy D. Lewis Shaw Pittman J. Silberg Shaw Pittman M. Wetterhahn Winston & Strawn J. Lamberski Troutman Sanders J. Matthews Morgan, Lewis & Bocklus K. Gallen Morgan, Lewis & Bockius J. Reiss Swidler Berlin C. Shanks EntergyNP - Finance / Administration S. Mangi State of PA/ Bureau of Radiation Protection Enclosure 1

l GPU NUCLEAR INCJAMERGEN TMI-1 SALE AND LICENSE TRANSFER MEETING SEPTEMBER 17,1998 l

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HANDOUT MATERIAL USED AT THE MEETING I i 1 l

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Enclosure 2

9/16/98 I i

AGENDA FOR NRC BRIEFING ON SALE OF TMI-1 FROM GPU TO AMERGEN

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1.

INTRODUCTION i

2.

SUMMARY

OF TERMS OF TMI-1 SALE

3. CONTENTS OF PROPOSED LICENSE TRANSFER REQUEST

4. PROPOSED SCHEDULE i l

t AMERGEN GPU NUQJEAR

9/16/98 2 i

2.

SUMMARY

OF TERMS OF TMI-1 SALE '

A. AMERGEN PURCHASES TMI-1 FROM GPU SUBSIDIARIES ,

(MET-ED, JCP&L, AND PENELEC) AND BECOMES THE i OWNER / OPERATOR OF TMI-I B. GP,UN EMPLOYEES AT TMI-I SITE AND SELECTED GPUN CORPORATE SUPPORT PERSONNEL BECOME AMERGEN EMPLOYEES C. GPU BUYS ALL POWER FROM TMI-1 FOR 2 YEARS FOLLOWING CLOSING D. GPU PROVIDES BACK-UP POWER AND INTERCONNECTION SERVICES TO TMI-1

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AMERGEN GPU NUQLEAR

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2.

SUMMARY

OF TERMS OF TMI-1 SALE (CONT'D)

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E. GPU MAY SHARE IN TMI-1 POWER SALES REVENUES IN -

2002 - 2010 BASED UPON MARKET PRICE F.. GPU PREPAYS TMI-I DECOMMISSIONING FUND AT CLOSING fqi.

i G.' 6PU SUBSIDIARIES RETAIN OWNERSHIP OF TMI-2 AND REMAIN LICENSEES FOR TMI-2 i

II. AMERGEN PROVIDES TMI-2 SUPPORT SERVICES AMERGEN GPU NUQEAR ,

9/16/98 4 ,

3. CONTENTS OF PROPOSED LICENSE TRANSFER REQUEST  ;

A. BACKGROUND INFORMATION ON TMI-I SALE AND OWNERSHIP AND CONTROL OF AMERGEN B. CONTINUITY OF TMI-1 OPERATIONS C. TECHNICAL QUALIFICATIONS OF AMERGEN D. FINANCIAL QUALIFICATIONS OF AMERGEN E. OTHER ITEMS F. 0"'3ER REQUIRED REGULATORY APPROVALS G. SUPPORTING APPENDICES AND EXHIBITS

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AMERGEN GPU NUQLem

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i A. OWNERSHIP AND CONTROL OF AMERGEN

1. AMERGEN IS A U.S. COMPANY

2. PECO AND A U.S. SUBSIDIARY OF BRITISH ENERGY EACH OWN  :

50% OF AMERGEN AND EACH APPOINT 50% OF MEMBERS OF MANAGEMENT COMMITTEE

3. CHAIRMAN OF MANAGEMENT COMMITTEE, CEO, AND CNO (IF OTHER THAN CEO) WILL ALL BE U.S. CITIZENS AMERGEN GPU NUQEAR

9/16/98 6 i

9 A. OWNERSHIP AND CONTROL OF AMERGEN (CONT'D) i

4. THESE U.S. CITIZENS WILL HAVE CONTROL OVER ALL '

REGULATORY ISSUES AT TMI-I AFFECTING PUBLIC HEALTH l AND SAFETY AND COMMON DEFENSE AND SECURITY

5. AMERGEN EMPLOYEES ENGAGED IN TMI-1 OPERATIONS WILL CONSIST PRIMARILY OF CURRENT GPUN EMPLOYEES AT TMI SITE i

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-AMERGEN GMINUQRAR s

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r B. CONTINUITY OF TMI-1 OPERATIONS t

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1. CONTINUITY OF DAY-TO-DAY OPERATION AND MAINTENANCE OF TMI-1 i

2. CONFORMING CHANGES TO LICENSE TO REFLECT TRANSFER l TO AMERGEN i

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3. ADMINISTRATIVE AND ORGANIZATIONAL CHANGES ONLY, WITH NO OTHER CHANGE IN LICENSING BASIS i

4. NO REDUCTION IN COMMITMENTS IN QA PLAN AND NO l REDUCTION IN EFFECTIVENESS OF EP AND SECURITY PLANS AMERGEN GPU NUCLJ R j f

9/16/98 8 '

C. TECHNICAL QUALIFICATIONS OF AMERGEN

1. GPUN ORGANIZATION AT TMI SITE WILL JOIN AMERGEN AND CONTINUE TO OPERATE TMI-1 '

2. CEO IS FORMER CHIEF NUCLEAR OFFICER AT PECO

3. OTHER EXPERIENCED NUCLEAR PERSONNNEL FROM PECO, GPUN AND BRITISH ENERGY WILL JOIN / SUPPORT AMERGEN

4. ADDITIONAL TECHNICAL SUPPORT FROM GPUN, PECO, AND -

BRITISH ENERGY i

9/16/98 9 D. FINANCIAL QUALIFICATIONS OF AMERGEN

1. PREPAID DECOMMISSIONING FUND FOR TMI-1 WHICH MEETS NRC REQUIREMENTS

2. 2 YEAR POWER PURCH'ASE AGREEMENT WITH GPU

3. FINANCIAL PROJECTIONS DEMONSTRATING THAT POWER i SALES REVENUES WILL COVER TMI-1 OPERATING COSTS i

4. CAPITAL COMMITMENTS FROM PECO AND BRITISH ENERGY SUFFICIENT TO COVER EXTENDED OUTAGE i

AMERGEN GPU NUCLEAR t

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E. OTHERITEMS b

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1. CONFORMING AMENDMENTS TO LICENSE AND TECHNICAL ,

SPECIFICATIONS ASSOCIATED WITH TRANSFER

2. FOREIGN OWNERSHIP ISSUES

3. INTERCONNECTION AGREEMENT

4. CONTROL OF EXCLUSION AREA m

AMERGEN GPU NLMARAR

9/16/98 1I a

E. OTHER ITEMS (CONT'D) 1 l

5. NO NRC ANTITRUST REVIEW REQUIRED FOR SECTION 104 '

PLANTS; ANTITRUST ISSUES WILL BE REVIEWED BY OTHER  :

AGENCIES

6. CONTROL OF ACCESS TO RESTRICTED DATA, RESTRICTED AREA, AND SPECIAL NUCLEAR MATERIAL

7. NO ENVIRONMENTAL IMPACT 4:

AMERGEN G P U N U Q EJ M t  ;

9/16/98 12 F. OTHER REQUIRED REGULATORY APPROVALS

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1. EXPIRATION'OF HART-SCOTT-RODINO WAITING PERIOD

2. APPROVALS OF PENNSYLVANIA PUC, NEW JERSEY BPU, AND NEW YORK PSC

3. VARIOUS FERC APPROVALS (e.g., EXEMPT WHOLESALE GENERATOR (EWG) DETERMINATION, APPROVAL OF POWER PURCHASE AGREEMENT, APPROVAL OF TRANSFER OF JURISDICTIONAL ASSETS)

, 4. POSSIBLE IRS RULING ON TAX ISSUES RELATED TO DECOMMISSIONING FUND 4

~AMERGEN GPU NUCL_BAR .

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13 G. SUPPORTING APPENDICES AND EXHIBITS i

1. ASSET PURCHASE AGREEMENT

2. AMERGEN LLC AGREEMENT

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3. ANNUAL REPORTS FOR PECO AND BRITISH ENERGY

4. AMERGEN FINANCIAL PROJECTIONS i

5. LEGAL ANALYSIS OF FOREIGN OWNERSHIP ISSUES

6. IDENTIFICATION OF CONFORMING AMENDMENTS AND SAFETY ANALYSIS '

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AMERGEN GPU NUCL3R

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4. PROPOSED SCHEDULE

1. EXECUTE ASSET PURCHASE AGREEMENT BY OCT.15,1998

2. SUBMIT NRC LICENSE TRANSFER REQUEST ON OCT.16,1998 -

3. SUBMIT OTHER REGULATORY APPLICATIONS AS SOON AS POSSIBLE e.5

4. MQUESTING ALL REQUIRED REGULATORY APPROVALS BY APRIL 15,1999

5. CLOSING OF TRANSAC _2ON FOLLOWING RECEIPT OF ALL REQUIRED REGULATORY APPROVALS

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6. WILL KEEP NRC INFORMED OF DEVELOPMENTS AFFECTING SCHEDULE I

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AMERGEN GPU NUCURE