ML20195C754

Order Approving Application Re Proposed Corporate Merger of Central & South West Corp & American Electric Power Co,Inc.Commission Approves Application Re Merger Agreement Between Csw & Aep

ML20195C754
Person / Time
Site:	South Texas
Issue date:	11/05/1998
From:	Collins S NRC (Affiliation Not Assigned)
To:	AMERICAN ELECTRIC POWER CO., INC., CENTRAL & SOUTH WEST CORP.
Shared Package
ML20195C733	List: ML20195C728 ML20195C754 ML20195C858
References
NUDOCS 9811170211
Download: ML20195C754 (4)

Text

,

-. ~ _ _ _ -.... _.. _. - _ ~.

l.

7590-01-P j

UNITED STATES OF AMERICA L

NUCLEAR REGULATORY COMMISSION in the Matter of

)

l

)

L HOUSTON LIGHTING & POWER COMPANY

)

Docket Nos. 50-498 CITY PUBLIC SERVICE BOARD OF

)

and 50-499

. SAN ANTONIO

)

l CENTRAL POWER AND LIGHT COMPANY ~

)

CITY OF AUSTIN, TEXAS

)

STP NUCLEAR OPERATING COMPANY

)

j

)

(South Texas Project, Units 1 and 2)

)

l ORDER APPROVING APPLICATION REGARDING PROPOSED CORPORATE MERGER OF CENTRAL AND SOUTH WEST CORPORATION AND AMERICAN ELECTRIC POWER COMPANY, INC.

l.

l Houston Lighting & Power Company; City Public Service Board of San Antonio; Central Power and Light Company (CPL); City of Austin, Texas; and STP Nuclear Operating Company are holders of Facility Operating Licenses Nos. NPF-76 and NPF-80, issued on March 22, 1988, and March 28,1989, respectively. Facility Operating Licenses Nos. NPF-76 and NPF-80 authorize the holders to possess the South Texas Project, Units 1 and 2 (STP), and authorize STP Nuclear Operating Company to use and operate STP in accordance with the procedures and limitations set forth in the operating licenses. The Nuclear Regulatory Commission (NRC) issued Licenses Nos. NPF-76 and NPF-80 on March 22,1988, and March 28,1989, respectively, pursuant to Part 50 of Title 10 of the Code of Federal Regulations (10 CFR Part 50). The facility is located in Matagorda County, Texas.

l 11.

Under cover of a letter dated June 19,1998, CPL submitted an application dated June 16,1998, for consent under 10 CFR 50.80 to allow the indirect transfer of CPL's interest in I

9811170211 981105 PDR ADOCK 05000498 P

PDR 1

2 STP that would occur in connection with a proposed merger of Central and South West Corporation (CSW, the parent holding company of CPL) and American Electric Power, Inc.

(AEP). Under the proposed merger, CSW would become a wholly-owned subsidiary of AEP, with CPL remaining a wholly-owned subsidiary of CSW. Houston Lighting & Power Company; City Public Service Board of San Antonio; City of Austin, Texas; and STP Nuclear Operating Company are not involved in the merger. The application was supplemented by a letter dated June 23,1998, and enclosures thereto.

CPL and the other current licensees would continue to hold the licenses, and no direct transfer of the licenses would result from the merger. On August 5,1998, a Notice of Consideration of Approval of Application Regarding Proposed Merger was published in the Federal Reaister (63 FR 41876). An Environmental Assessment and Finding of No Significant impact was published in the Federal Reaister on September 28,1998 (63 FR 51629).

Under 10 CFR 50.80, no license shall be transferred, directly or indirectly, through transfer of control of the license, unless the Commission gives its consent in writing. Upon review of the information contained in the application dated June 16,1998, and enclosures to the letter dated June 23,1998, the NRC staff has determined that the proposed merger will not affect the qualifications of CPL as holder of Facility Operating Licenses Nos. NPF-76 and NPF-80, and that the transfer of control of the licenses, to the extent effected by the proposed merger, is otherwise consistent with applicable provisions of law, regulations, and orders issued by the Commission, subject to the conditions set forth herein. These findings are supported by a safety evaluation dated.. November 5,1998.

l t

e-n

l'o 3

til.

Accordingly, pursuant to Sections 161b,1611,161o, and 184 of the Atomic Energy Act of 1954, as amended; 42 U.S.C. $$ 2201(b),2201(i),2201(o), and 2234; and 10 CFR 50.80, IT IS HEREBY ORDERED that the Commission approves the application regarding the merger i

. agreement between CSW and AEP subject to the following: (1) CPL shall provide the Director of the Office of Nuclear Reactor Regulation with a copy of any application, at the time it is filed, to transfer (excluding grants of security interests or liens) from CPL to its proposed parents, or to any other affiliated company, facilities for the production, transmission, or distribution of l

electric energy having a depreciated book value exceeding 10 percent of CPL's consolidated i

net utility plant, as recorded on its books of account, and (2) should the merger not be i

completed by December 31,1999, this Order shall become null and void, unless upon application and for good cause shown this date is extended.

This Order is effective upon issuance.

IV.

i l

By December 14, 1998, any person adversely affected by this Order may file a request for a hearing with respect to issuance of the Order. Any person requesting a hearing l

shall set forth with particularity how such person's interest is adversely affected by this Order L

and shall address the criteria set forth in 10 CFR 2.714(d).

if a hearing is to be held, the Commission willissue an order designating the time and place of such hearing.

The issue to be considered at any such hearing shall be whether this Order should be l

L sustained.

Any request for a hearing must be filed with the Secretary of the Commission, U.S.

j Nuclear Regulatory Commission, Washington, DC 20555-0001, Attention: Rulemakings and

~

~

4 l

Adjudications Staff, or may be delivered to the Commissior's Public Document Room, the Gelman Building,2120 L Street, NW., Washington, DC 20555-0001, by the above date.

j Copies should also be sent to the Office of the General Counsel and to the Director, Office of Nuclear Reactor Regulation, U.S. Nuclear Regulatory Commission, Washington, DC 20555-0001, and to John O'Neill, Jr., Shaw, Pittman, Potts & Trowbridge,2300 N Street, NW.,

Washington, DC 20037-1128, counsel for CPL.

i For further details with respect to this action, see the application from CPL dated 1

June 16,1998, submitted under cover of a letter dated June 19,1998, from Shaw, Pittman, l

Potts, and Trowbridge, counsel for CPL, supplemental letter dated June 23,1998, and i

l enclosures thereto, and the safety evaluation dated Nmnber 5,1998, which are available for public inspection at the Commission's Public Document Room, the Gelman Building,2120 L Street, NW., Washington, DC 20555-0001, and at the local public document room located at the Wharton County Junior College, J.M. Hodges Learning Center,911 Boling Highway, Wharton, TX 77488.

FOR THE NUCLEAR REGULATORY COMMISSION ath p

or Office of Nuclear Reactor Regulation Dated at Rockville, Maryland, this 5th day of November 1998 i

i i

I

_