ML20198Q426

Order Approving Application Re Restructuring of Rg&E Corp by Establishment of Holding Company Affecting License DPR-18, Ginna NPP

ML20198Q426
Person / Time
Site:	Ginna
Issue date:	12/14/1998
From:	Collins S NRC (Affiliation Not Assigned)
To:	ROCHESTER GAS & ELECTRIC CORP.
References
NUDOCS 9901070305
Download: ML20198Q426 (5)

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UNITED STATES OF AMERICA j E I

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NUCLEAR REGULATORY COMMISSIOtGl g i n

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ROCHESTER GAS AND ELECTRIC ) Docket No. 50-2$$

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(R. E. Ginna Power Plant) )

ORDER APPROVING APPLICATION REGARDING RESTRUCTURING OF ROCHESTER GAS AND ELECTRIC CORPORATION BY ESTABLISHMENT OF A HOLDING COMPANY AFFECTING LICENSE NO. DPR-18, R. E. GINNA NUCLEAR POWER PLANT '

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Rochester Gas and Electric Corporation (RG&E and licensee) is licensed by the U.S.

Nuclear Regulatory Commission (NRC or Commission) to possess, maintain, and operate the R. E. Ginna Nuclear Power Plant (Ginna or the facility), under Facility Operating License No. I DPR-18, issued by the Commission on December 10,1984. RG&E fully owns Ginna. The

facility is located in Wayne County, New York. f1)$

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RG&E submitted an application dated July 31,1998, as supplemented August 18, 1998, and September 14,1998, for consent by the Commission, pursuant to 10 CFR 50.80, to l

' the extent a proposed corporate restructuring action would result in the indirect transfer of the operating license for the facility. Under the proposed restructuring, RG&E would establish a new holding company and become a subsidiary of the new holding company in accordance with a Setticment Agreement reached with the New York Public Service Commission (PSC

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2-Case Nos. 96-E-0989), dated October 23,1997. Unregulated subsidiaries of RG&E would also become subsidiaries of the new holding company.

According to the application, essentially each share of RG&E's common stock would be exchanged for one share of common stock of the holding company such that the holding company would own the outstanding common stock of RG&E. Under this restructuring, RG&E would continue to be an " electric utility" as defined in 10 CFR 50.2 engaged in the

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transmission, distribution and generation of electricity. RG&E would continue to be the direct owner of Ginna and would continue to operate Ginna. No direct transfer of the operating license would result from the proposed restructuring. The transaction would not involve any change in the responsibility for nuclear operations within RG&E. Officer responsibilities at the holding company level would be primarily administrative and financial in nature and would not involve operational matters related to Ginna. No RG&E nuclear management positions would be changed as a result of the corporate restructuring.

A Notice of Consideration of Approval of Application Regarding Proposed Corporate Restructuring was published in the Federal Reaister on October 26,1998 (63 FR 57141), and an Environmental Assessment and Finding of No Significant Impact was published in the Federal Reaister on October 26,1998 (63 FR 57143).

Under 10 CFR 50.80, no license 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 submitted in the application of July 31,1998, as supplemented August 18,1998, and September 14,1998, the NRC staff has determined that the restructuring of RG&E by establishment of a holding company will not affect the qualifications of RG&E as the holder of the license for Ginna, and that the transfer of control of the license, to the extent effected by the proposed res'.ructuring, is otherwise consistent with applicable j

4 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 December 14,  :

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1998.

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i Accordingly, pursuant to Sections 161b,1611 161o, and 184 of the Atomic Energy Act of 1954, as amended,42 USC $5 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 proposed

! restructuring of RG&E by the establishment of a holding company, subject to the following: (1)

RG&E 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 RG&E 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 RG&E's consolidated net utility plant, as recorded on RG&E's books of l account; and (2) should the restructuring of RG&E as described herein, not be completed by December 14,1999, 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.

! SB 111999 By f20 L7 Z , any person whose interest may be affected by this Order may file in accordance with the Commission's rules of practice set forth in Subpart M of 10

~ CFR Part 2 a request for a hearing and petition for leave to intervene with respect to issuance ,

of the Order. Such requests and petitions must comply with the requirements set forth in 10 i

!' CFR 2.1306, and should address the considerations contained in 10 CFR 2.1308(a). Untimely requests and petitions may be denied, as provided in 10 CFR 2.1308(b), unless good cause for failure to file on time is established. In addition, an untimely request or petition should 1.

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! 4 address the factors that the Commission will also consider, in reviewing untimely requests or

! petitions, set forth in 10 CFR 2.1308(b)(1)-(2).

Requests for a hearing and petitions for leave to intervene should be served upon l Dr. Robert C. Mecredy, Vice President, Nuclear Operations, Rochester Gas and Electric Corporation,89 East Avenue, Rochester, New York 14649; the General Counsel, U.S. Nuclear l Regulatory Commission, Washington, D.C. 20555; the General Counsel, U.S. Nuclear Regulatory Commission, Washington, D.C. 20555; and the Secretary of the Commission, U.S.

Nuclear Regulatory Commission, Washington, D.C. 20555-0001, Attention: Rulemakings and Adjudications Staff, in accordance with 10 CFR 2.1313.

The Commission willissue a notice or order granting or denying a hearing request of l

l- intervention petition, designating the issues for any hearing that will be held and designating j the Presiding Officer. A notice granting a hearing will be published in the Federal Reoister and served on the parties to the hearing.

I For further details with respect to this Order, see the application for approval filed by RG&E dated July 31,1998, as supplemented by letter dated August 18,1998, and attachments thereto, and letter dated September 14,1998, with attachments, and the Safety Evaluation dated December 14 ,1998, which are available for public inspection at the Commission's Public Document Room, the Gelman Building,2120 L Street, NW., Washington, l DC, and at the local public document room located at the Reference and Documents i

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d Department, Penfield Library, State University of New York, Oswego, New York 13126 and the Rochester Public Library,115 South Avenue, Rochester, New York 14610.

Dated at Rockville, Maryland, this14 th day of December 1998.

FOR THE NUCLEAR REGULATORY COMMISSION I a

! Office of Nuclear Reactor Regulation i

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