ML20196J526

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Order,Approving Application Re Transfer of Operating Authority.Commission Consents to Transfer of License as Described to Firstenergy Nuclear Operating Co
ML20196J526
Person / Time
Site: Perry FirstEnergy icon.png
Issue date: 12/02/1998
From: Zimmerman R
NRC (Affiliation Not Assigned)
To:
NRC OFFICE OF THE GENERAL COUNSEL (OGC)
Shared Package
ML20196J530 List:
References
NUDOCS 9812100116
Download: ML20196J526 (5)


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7590-01-P l

UNITED STATES OF AMERICA NUCLEAR REGULATORY COMMISSION in the Matter of

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THE CLEVELAND ELECTRIC ILLUMINATING )

COMPANY

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TOLEDO EDISON COMPANY

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CENTERIOR SERVICE COMPANY

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OHIO EDISON COMPANY

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Docket No. 50-440

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OES NUCLEAR, INC.

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PENNSYLVANIA POWER COMPANY

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DUQUESNE LIGHT COMPANY

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4 (Perry Nuclear Power Plant, Unit No.1)

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ORDER APPROVING APPUCATION REGARDING THE TRANSFER OF OPERATING AUTHORITY 1.

The Cleveland Electric illuminating Company (CEI), Centerior Service Company (CSC),

Duquesne Light Company, Ohio Edison Company (OE), OES Nuclear, Inc., Pennsylvania Power Company (Penn Power), and Toledo Edison Company (TE) are the licensees of the Perry Nuclear Power Plant, Unit No.1 (PNPP). CEI and CSC act as agents for the other licensees and have exclusive responsibility for, and control over, the physical construction, operation, and maintenance of PNPP as reflected in Operating License No. NPF-58. The U.S.

Nuclear Regulatory Commission (NRC) issued License No. NPF-58 on March 18,1986, 9812100116 981202 PDR ADOCK 05000440 P

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pursuant to Part 50 of Title 10 of the Code of Federa/ Regulations (10 CFR Part 50). The facility is located on the shore of Lake Erie in Lake County, Ohio, approximately 35 miles northeast of Cleveland, Ohio.

II.

i By application dated June 30,1998, as supplemented by submittals dated October 27 and November 30,1998, the licensees requested approval of the transfer of operating authority l

l under the license to a new company, FirstEnergy Nuclear Operating Company (FENOC), and issuance of a conforming amendment. The licensees proposed to transfer operating authority under the license to FENOC to allow it to use and operate PNPP and to possess and use related licensed nuclear materials in accordance with the same conditions and authorizations in the current operating license. The licensees have also requested the issuance of a license amendment reflecting the transfer of operating authority. FENOC, a wholly-owned subsidiary of FirstEnergy Corporation, the direct or indirect parent of the owners of PNPP except for Duquesne Light Company, would become the licensed operator for PNPP and would have exclusive control over the operation and maintenance of the facility. The present plant organization, the oversight organizations, and the engineering and support organizations would be transferred essentially intact from the current operating licensees to FENOC. The technical qualifications of the FENOC organization, therefore, would be at least equivalent to those of the existing organization responsible for operating the plant. CSC, which has no ownership interest in PNPP, and is licensed only as an operator of PNPP, would be removed from the license.

Ur. der the proposed arrangement, ownership of PNPP would remain unchanged; each owner would retain its current ownership interest. FENOC would not own any portion of PNPP.

Likewise, the owners' entitlement to capacity and energy from PNPP would not be affected by the proposed transfer of operating responsibility for PNPP to FENOC. The owners would

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,.t*. continue to provide all funds for FENOC to operate, maintain, and decommission PNPP. The owners' responsibilities would include providing funding for any emergency situations that might arise at PNPP.

The licensees requested the Commission's approval of the transfer of operating authority l

l to FENOC and issuance of a conforming license amendment pursuant to 10 CFR 50.80 and I

50.90. Notice of this application for approval and an opportunity for a hearing were published in the Federal Register on August 4,1998 (63 FR 41600), and an Environmental Assessment and Finding of No Significant impact was published in the Federa/ Register on September 10,1998 (63 FR 48531).

Under 10 CFR 50.80, no license, or any right thereunder, shall be transferred, directly or indirectly, through transfer of control of the license, unless the Commission shall give its consent in writing. Upon review of the information contained in the submittals of June 30, October 27, and November 30,1998, and other information before the Commission, the NRC staff has determined that FENOC is qualified to hold the license to the extent and for the purposes described above, and that the transfer of the license as described above is otherwise consistent with applicable provisions of law, regulations, and orders issued by the Commission, subject to the conditions set forth below. These findings are supported by a Safety Evaluation dated December 2,1998.

Ill.

Accordingly, pursuant to Sections 105,161b,1611, and 184 of the Atomic Energy Act of 1954, as amended; 42 USC $$ 2135,2201(b),2201(i), and 2234; and 10 CFR 50.80, IT IS HEREBY ORDERED that the Commission consents to the transfer of the license as described l

l herein to FENOC, subject to the following conditions:

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-4 (1) FENOC shall not market or broker power or energy from the Perry Nuclear Power 1

Plant, Unit No.1. The owners are responsible and accountable for the actions of l

FENOC to the extent that said actions affect the marketing or brokering of power or energy from the Perry Nuclear Power Plant, Unit No.1, and, in any way, contravene the antitrust license conditions contained in the license.

(2) Should the formation of FENOC and transfer of operating authority not be completed I

by December 31,1999, this Order shall become null and void, provided, however, on application and for good cause shown, such date may be extended.

This Order is effective upon issuance.

Action on the proposed conforming license amendment will be taken upon implementation of the transfer approved by this Order.

For further details with respect to this Order, see the licensees' application dated June 30, 1998, as supplemented by submittals dated October 27 and November 30,1998, which are i

available for public inspection at the Commission's Public Document Room, the Gelman Building,2120 L Street, NW., Washington, DC, and at the local public document room located l

at the Perry Public Library,3753 Main Street, Perry, OH 44081.

2md Dated at Rockville, Maryland, this day of December 1998.

FOR THE NUCLEAR REGULATORY COMMISSION Roy.Ni$rneEnYn AN[ng Director Office of Nuclear Reactor Regulation Document Name: G:\\ PERRY \\MA2218.ORD OFFICE PM:PD321 E LA:PD32 E

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tSCollin's DATE 10/02/98 12/02/98 11/19/98 11/21/98 I n /;L/98

  • See previous concurrence OFFICIAL RECORD COPY K9

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,,.. t (1). FENOC shall not market or broker power or energy from the Perry Nuclear Power Plant, Unit No.1. The owners are responsible and accountable for the actions of FENOC to the extent that said actions affect the marketing or brokering of power or energy from the Perry Nuclear Power Plant, Unit No.1, and, in any way, contravene the antitrust license conditions contained in the license.

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(2) Should the formation of FENOC and transfer of operating authority not be completed

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by December 31,1999, this Order shall become null and void, provided, however, on application and for good cause shown, such date may be extended.

3 This Order is effective upon issuance.

i Action on the proposed conforming license amendment will be taken upon implementation

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of the transfer approved by this Order.

i For further details with respect to this Order, see the licensees' application dated June 30, I

l 1998, as supplemented by submittals dated October 27 and November 30,1998, which are available for public inspection at the Commission's Public Document Room, the Gelman Building,2120 L Street, NW., Washington, DC, and at the local public document room located at the Perry Public Library,3753 Main Street, Perry, OH 44081.

Dated at Rockville, Maryland, this 2" day of December.

FOR THE NUCLEAR REGULATORY COMMISSION L

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oy. Ii an, Acting Director of N ear Reactor Regulation