ML20202F019
| ML20202F019 | |
| Person / Time | |
|---|---|
| Site: | River Bend  |
| Issue date: | 11/28/1997 |
| From: | NRC (Affiliation Not Assigned) |
| To: | |
| Shared Package | |
| ML20202E985 | List: |
| References | |
| NUDOCS 9712080202 | |
| Download: ML20202F019 (3) | |
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UNITED STATES g
.j NUCLEAR REGULATORY COMMISSION E
WASHINGTON. D.C. 300e64001 o
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SAFETY EVALUATION BY THE OFFICE OF NUCLEAR REACTOR REGULATION PROPOSED TRANSFER OF LICENSE ENTERGY GULF STATES. INC.
CAJUN ELECTRIC POWER COOPERATIVE. INC.
(E KET NO. 50-458 FACILITY OPERATING LICENSE NO. NPF-47 RIVER BEND STATION. UNIT 1
1.0 INTRODUCTION
In an application for consent under 10 CFR 50.80 dated October 15, 1997, filed with the Nuclear Regulatory Commission (NRC or Commission), Mr. Ralph R.
Mabey, Chapter 11 Trustee for Cajun Electric Power Coo)erative Inc. (Cajun),
which filed for protection under Chapter 11 of the Lancruptcy Code in 1994, requested NRC approval for the proposed transfer of Cajun's 30-percent undivided ownership interest of River Bend Station, Unit 1 (River Bend) to EGSI currently owns 70-percent of Entergy Gulf States, Inc. (EGSI)iate, Entergy Operations, Inc. (E01), is River Bend.
Its corporate affil licensed to operate the facility.
Both EGSI and E01 are subsidiaries of Entergy Corporation (Entergy). Upon completion of the transfer of Cajun's share of River Bend to EGSI, EGSI will become the sole owner of River Bend and E01 will continue as plant operator.
An August 26, 1996, Order of the United States Bankruptcy Court fer the Middle District of Louisiana, affirmed by the United States Court of Appeals for the Fifth Circuit on August 5, 1997, approved a settlement agreement between Cajun, EGSI, and the Rural Utilities Service of the United States Department of Agriculture and authorizes the Trurtee to obtain regulatory approval to transfer Cajun's undivided ownership interest in River Bend ',tation, Unit 1, to EGSI. The transfer is sub.iect to the license transfer provisions of 10 CFR 50.80.
2.0 f_INANCIAL OVALIFICATIONS Based on the information provided in the Application for Transfer dated October 15, 1997, and subsequent information submitted October 16, 1997, the staff finds th:t EGSI is financially qualified to contribute appropriately to the operations and decommissioning of the River Bend facility as the proposed sole owner of the facility.
9712090202 97112848J PDR ADOCK 050
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. The application states that the proposed transfer will have no impact en the funds available for EGSI to carry out activities under the operating license.
In addition, the application states that the transfer will have no effect on EGSI's capital structure or ca) ital costs and cost-of-service ratemaking regulation will continue for t1e EGSI 70-percent interest.
The 30-percent interest to be acquired will not be subject to traditional cost-of-service ratemaking regulation by a state regulatory authority but will be subject to market-based wholesale power sales by EGSI.
EGSI has a defined franchised service territory with generation, transmission, and distribution assets under cost-of-service ratemaking authority of the Texas Public Utility Comission and the Louisiana Public Service Comission.
In selling output from Cajun's former share of River Bend, EGSI will be similar to other electric utility power reactor licensees, which engage in some market-based wholesale power sales that represent a minority of their total power generation.
EGSI is an " electric utility" as defined under 10 CFR 50.2 and will remain as such following the transfer.
Pursuant to 10 CFR 50.33(f), EGSI is exempt,from further financial qualifications review.
The October 15, 1997, application indicates that EGSI will assume responsibility for Cajun's share of River Bend's decomissioning expenses.
In its August 26, 1996, Order approving the settlement, the Bankruptcy Court approved the establishment of new decomissioning trust arrangements in satisfaction of all of Cajun's River Bend decomissioning obligations Pursuant to the Bankruptcy Court's Order, Cajun will establish a (new) decomissioning trust fund in the emount of $125,000,000 (in 1995 dollars).
This fund will consist of a new contribution by Cajun, as well as the amount from Cajun's existino decomissioning trust fund, and is a prepayment of the current estimate of its share of all anticipated future decomissioning costs.
EGSI will be responsible for all decomissioning expenses not offset by the
$125,000,000 trust fund incurred at the actual time of decomissioning.
By en existing license condition, EGSI is already obligated to notify the NRC of any transfer of assets having a depreciated book value exceeding one percent of EGSI's consolidated net utility plant. Upon transfer of Cajun's interest in River Bend to EGSI the existing license condition will apply to all of EGSI's interest in River Bend, i.e., 100-percent.
The condition more than adequately provides additional assurance that the NRC will be informed as to significant asset transfers which could potentially impact EGSI's financial responsibilities for River Bend.
Based on the above information, the staff finds EGSI financially qualified to hold the license for River Bend as 100-percent owner.
3.0 TECHNICAL QUALIFICATIONS As noted previously, E01 is licensed to operate River Bend.
Neither EGSI nor Cajun is authorized under the license to operate the facility.
The proposed transfer does not involve E01 or any change in its authority and
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responsibilities under the license.
Since the transfer does not involve any transfer of operational authority to EGSI, a review of EGSI's technical qualifications is not necessary.
4.0 ANTITRUST Extensive antitrust license conditions were attached to the River Bend Operating License when originally issued that apply to EGSI.
The proposed transfer will have no impact on these conditions or EGSI's obligation to comply with them.
Because the proposed transfer in this case does not involve an application for a construction permit or operating license for a new owner or licensee, and EGSI is already subject to antitrust license conditions resulting from an earlier antitrust review and will continue to be subject to such conditions, no further antitrust review by the NRC is necessary under the Atomic Energy Act.
5.0 FOREIGN OWNERSHIP Cajun indicated in its submittal which was endorsed by EGSI, that EGS! is not owned, controlled, or dominated by an alien, foreign corporation, or foreign government.
The staff does not know or have reason to believe that EGS! is owned, controlled or dominated by an alien, foreign government, or foreign interests.
6.0 CONCLUSION
S Based on the above determinations, the staff concludes that in connection with the proposed transfer of Cajun's interest in River Bend to EGSI, EGSI is qualified to hold the license, and the transfer is otherwise consistent with applicable, provisions of law, regulations, and orders issued by the Commission pursuant tnereto.
Principal Contributor:
M. A. Dusaniwskyj Date:
November 28, 1997 P
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