ML20198S642
| ML20198S642 | |
| Person / Time | |
|---|---|
| Site: | Quad Cities  |
| Issue date: | 12/22/1998 |
| From: | Collins S NRC (Affiliation Not Assigned) |
| To: | NRC OFFICE OF THE GENERAL COUNSEL (OGC) |
| Shared Package | |
| ML20198S646 | List: |
| References | |
| NUDOCS 9901110380 | |
| Download: ML20198S642 (4) | |
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UNITED STATES OF AMERICA NUCLEAR REGULATORY COMMISSION In the Matter of
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COMMONWEALTH EDISON COMPANY
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Docket Nos. 50-254 and
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and 50-265 MIDAMERICAN ENERGY COMPANY
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(Quad Cities Nuclear Power Station,
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Units 1 and 2)
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ORDER APPROVING APPLICATION REGARDING PROPOSED MERGER OF MIDAMERICAN ENERGY HOLDINGS COMPANY WITH CALENERGY COMPANY l
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MidAmerican Energy Company (MEC) owns a 25-percent interest in Quad Cities Nuclear Power Station, Units 1 and 2. Commonwealth Edison Company (Comed) owns the remaining 75-percent share of the facilities. MEC and Comed hold Facility Operating Licenses Nos. DPR 29 and DPR-30 issued by the U. S. Atomic Energy Commission pursuant to Part 50 of Title 10 of the Code of Federal Reoulations (10 CFR Part 50) on December 14,1972. Under these licenses, only Comed, acting for itself and as agent and representative of MEC has the authority to operate the Quad Cities Nuclear Power Station, Units 1 and 2. Quad Cities is located in Rock Island County, Illinois.
II.
By application accompanied by cover letters dated September 10,1998, from CalEnergy Company, Inc. (CalEnergy) and MEC, through counsel Roy P. Lessy, Jr., and from Comed, MEC and CalEnergy informed the Commission of a proposed merger of CalEnergy with MidAmerican Energy Holdings Company (MEHC), the parent of MEC, which would effectively result in CalEnergy becoming the parent corporation and sole owner of MEHC MEHC would
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2 continue to be the parent of MEC. MEC would continue to remain a 25-percent minority owner and possession-only licensee of the Quad Cities Nuclear Power Station, Units 1 and 2, and would remain an ' electric utility" as defined in 10 CFR 50.2, engaged in the generation, transmission, and distribution of electric energy for wholesale and retall, according to the application. The application was supplemented by letters dated September 16 and November 20,1998, and attachments thereto, from counsel for the applicants. MEC and CalEnergy requested the Commission's approval of the indirect license transfers to CalEnergy to the extent effected by the proposed corporate merger, pursuant to 10 CFR 50.80. Notice of this request for approval was published in the FEDERAL REGISTER on October 27,1998 (63 FR 57324).
Upon review of the information submitted in the application, including the supplemental information provided by the applicants, and other information before the Commission, the NRC staff has determined that the proposed merger will not affect the qualifications of MEC as a holder of the license, 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 December 22,1998.
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Accordingly, pursuant to Sections 161b,1611,161o, and 184 of the Atomic Energy Act of 1954, as amended,42 USC $$ 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 merger of MEHC with CalEnergy, subject to the following: (1) MEC shall provide the Director of the Office of the Nuclear Reactor Regulation a copy of any application, at the time it
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. is filed, to transfer (excluding grants of security interests or liens) from MEC to its parent or to any other affiliated company, facilities for the production, transmission, or distribution of electric energy having a depreciated book value exceeding ten percent (10%) of MEC's consolidated net utility plant, as recorded on MEC's books of account, and (2) should the merger of CalEnergy and MEHC not be completed 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.
IV.
By January 19,1999, 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 sets forth in 10 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 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 Michael 1. Miller, Esquire, Sidley and Austin, One First National Plaza, Chicago, Illinois 60603, attomey for Comed; Roy P. Lessy, Jr., Akin, Gump, Straus, Hauer, & Feld, L.L.P.,1333 New Har,tpshire Avenue, N.W., Suite 400, Washington, DC 20036, attomey for CalEnergy and MEC; the General Counsel, U.S. Nuclear Regulatory Commission. ashington, D.C. 20555; and the Secretary of the Commission, U.S. Nuclear Regulatory Cor,imission, Washington,
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_4 D.C. 20555-001, Attention: Rulemakings and Adjudications Staff, in accordance with 10 CFR 2.1313.
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The Commission will issue a notice or order granting or denying a hearing request or intervention petition, designating the issues for any hearing that will be held and designating the Presiding Officer, A notice granting a hearing will be published in the FederalRealster and served on the parties to the hearing.
For further details with respect to this Order, see the application for consent concoming thi proposed corporate merger of CalEnergy and MEHC submitted under cover letters dated September 10,1998, and supplementalinformation submitted under cover letters dated September 16 and November 20,1998, and the safety evaluation dated December 22, 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 Dixon Public Library,221 Hennipen Avenue, Dixon, Illinois.
FOR THE NUCLEAR REGULATORY COMMISSION amue ector Office of Nuclear Reactor Regulation Dated at Rockville, Maryland this22nd day of December 1998 l
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