ML20198J093

Order Approving Application Re Merger Between Atlantic Energy Inc,& Delmarva Power & Light Co

ML20198J093
Person / Time
Site:	Peach Bottom
Issue date:	12/18/1997
From:	Collins S NRC (Affiliation Not Assigned)
To:	ATLANTIC ENERGY, INC., DELMARVA POWER & LIGHT CO.
Shared Package
ML20198J056	List: ML20198J051 ML20198J093 ML20198L333
References
NUDOCS 9801140036
Download: ML20198J093 (6)

Text

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1 UNITED STATES OF AMERICA NUCLEAR REGULATORY CDP 9tISSION l

In the Matter of ) l ATLANTIC CITY ELECTRIC COMPANY Docket Nos. 50-277 and 50-278 DELMARVA POWER AND LIGHT COMPANY

)

(Peach Bottom Atomic Power Station, )

Units 2 and 3) )

ORDER APPROVING APPLICATION RuGARDING MERGER AGREEMENT BETWEEN ATLANTIC ENERGY, INC. (PARENT OF ATLANTIC CITY ELECTRIC COMPANY)

AND DELMARVA POWER AND LIGHT COMPANY I.

Atlantic City Electric Company (ACE) and Delmarva Power and Light Company (DP&L) are co-holders of Facility Operating Licenses Nos. DPR-44 and DPR-56, along with Public Service Electric and Gas Company (PSE&G) and PECO Energy Company, issued by the U.S. Nuclear Regulatory Commission (NRC or Commission) pursuant to Part 50 of Title 10 of the Code of Federal Reaulations (10 CFR Part 50) for operation of the Peach Bottom Atomic Power Station, Units 2 and 3 (PBAPS). Under the licenses, PECO Energy Company is authorized to possess, use, and operate the facilities, and ACE, DP&L, and PSE&G are authorized to possess the facilities. PBAPS is located in York County, Pennsylvania.

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By application flied by ACE and DP&L under cover of a letter dated April 30, 1997, from John H. O'Neill, Jr., of Shaw, Pittman, Potts &

Trowbridge, attorney for ACE and DP&L, supplemented hy letter dated November 7,1997, ACE and DP&L requested the Commission's approval, pursuant to 10 CFR 50.80,-of the indirect transfer of the licenses, to the extent held

' by ACE and DP&L, that would result from the consummation of a merger agreement

. between Atlantic Energy, Inc. (parent of ACE) and DP&L. .Under the merger agreement, Atlantic Energy, Inc. and DP&L would form a new holding company, Conectiv, Inc., under which ACE and DP&L would become wholly owned subsidiaries. No direct transfer of the licenses would occur. PSE&G and PECO Energy Company are not involved in the merger.

A Notice of Consideration of Approval of Application Regarding Proposed Corporate Restructuring was published in the Federal Reaister on December 8, 1997 (62 FR 64601), and an Environmental Assessment and Finding of No Significant Impact was published in the Federal Reaister on December 8,1997 (62 FR 64601).

Under IC 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 submitted in the letter and application of April 30, 1997, and supplement dated November 7,

-1997, the NRC staff has determined that the proposed merger of Atlantic 1

Energy. Inc. and DP&L will not affect the qualifications of ACE and DP&L as holders of the licenses, and that the transfer of control of the licenses for i PSAPS, to the extent effected by the proposed merger, is otherwise l

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consistent with applicable provisions of law, regulations, and orders issued by the Commission,. subject to the conditions stated herein. These findings-are supported by a- safety evaluation dated December _18,1997.

III.

Accordingly, pursuant to Sections 161b,1611,1610, and 184 of the Atomic Energy Act of 1954, as amended, 42 USC li 2201(b), 2201(1), 220)(o),

and 2234, and 10 CFR 50.80, IT IS HEREBY ORDERED that the Commission approves the application regarding the proposed merger of Atlantic Energy Inc. and DP&L subject to the following conditions: (1) ACE shall provide the Director of the Office of Nuclear Reactor Regulation a copy of any application, at the time it is filed, to transfer (excluding grants of security interests or liens) from ACE to its proposed parent or to any other affiliated company, facilities for the production, transmission, or distribution of electric energy having a depreciated book value exceeding 10 percent (10%) of ACE's consolidated net utility plant, as recorded on ACE's books of account; (2)

DP&L shall provide th'e Director of the Office of Nuclear Reactor Regulation a copy of any application, at the time it is filed, to transfer (excluding grants of security interests or liens) from DP&L to its proposed parent or to any other affiliated company, facilities for the production, transmission, or distribution of electric energy having a depreciated book value exceeding 10 percent (10%)-of DP&L's consolidated net utility plant, as recorded on DP&L's books'of account; and (3) should the merger of Atlantic Energy, Inc.

- and DP&L, as described herein, not be completed by December 31, 1998, this

4 Order shall bnome null- and void, provided, however,. on application and for good cause shown, such date is extended.

This Order is effective upon issuance.

IV.

By January 23, 1998 , any person adversely affected by this Order may file a request for a hearing with respect to isscance of the Order. Any person requestir.g a hearing shall set forth with particularity how that interest is adversely affected by this Order and shall address the criteria set forth in 10 CFR 2.714(d).

If a hearing is to be held, the Commission will issue an order designating the time and place of such hearing.

The issue to be coiaidered at any such hearing shall be whether this Ordei should be sustained.

Any request for a hearing must be filed with the Secret ey of the Commission, U.S. Nuclear Regulatory Conmiission, Weshington, DC 20555-0001, Attention: Rulemakings and Adjudications Staff, or may be delivered to the Connission's Public Document Room, The Geltan Building, 2120 L Street, NW., ,

Washington, DC by the above date. Copies should be also sent to the Office of the General Counsel and to the Director, Office of Nuclear Reactor Regulation, U.S. Nuclear Regulatory Comeission, Washington, DC 20555-0001, and to John H.

O'Neill, Jr., Shaw, Pittman, Potts & Trowbridge, 2300 N Street, NW.,

Washington, DC, 20037, attorney for ACE and DP&L.

For further details with respect to this action, see the application filed by ACE and DP&L under cover of a letter dated April 30, 1997, from John H. O'Neill, Jr., of Shaw, Pittman, Potts & Trowbridge, as supplemented by l _

a!1etter dated November _7, 1997, and the safety evaluation ' dated December 18, 1997,.

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 in the Government Publications Section, State Library of Pennsylvania, (REGIONAL DEPOSITORY) Education Building, Walnut Street and Commonwealth Avenue, Box 1601, Harrisburg, Pennsylvania ~.

Dated at Rockville, Maryland, this 18th day of December 1997.

FOR THE NUCLEAR REGULATORY COMMISSION

/S/

Samuel J. Collins, Director Office of Nuclear Reactor Regulation

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a' letter dated November 7,1997, and the safety evaluation dated December 18, 1997,

.which are available for.public inspe: tion at the_ Connission's Public Document Room, The Gelman Building, 2120 L Street, NW., Washington, DC, and at the local public document room in the Government Publications Section, State Library of Pennsylvania, (REGIONAL DEPOSITORY) Education Building, Walnut Street and Commonwealth Avenue, Box 1601, Harrisburg, Pennsylvania.

Dateo at Rockville, Maryland, this18th day of December 1997.

FOR THE NUCLEAR REGULATORY COMMISSION D rector Office of Nuclear Reactor Regulation

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