ML20204B894
| ML20204B894 | |
| Person / Time | |
|---|---|
| Site: | Crane  |
| Issue date: | 03/15/1999 |
| From: | Gallen K, Doris Lewis External (Affiliation Not Assigned), GENERAL PUBLIC UTILITIES CORP., MORGAN, LEWIS & BOCKIUS, SHAW, PITTMAN, POTTS & TROWBRIDGE |
| To: | NRC OFFICE OF INFORMATION RESOURCES MANAGEMENT (IRM) |
| References | |
| NUDOCS 9903220283 | |
| Download: ML20204B894 (5) | |
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March f 5,1999 10 CFR @ 50.80 U.S. Nuclear Regulatory Commission ATTN: Document Control Desk Mail Stop O-PI-17 Washington, DC 20555-0001 Re:
Three Mile Island Nuclear Station, Unit 1 (TMI-1)
Facility Operating License No. DPR-50, Docket No. 50-289 License Amendment Request No. 278 Proposed License Transfer and Conforming Administrative License Amendments
Dear Sir / Madam:
AmerGen Energy Company, LLC (AmerGen) and GPU Nuclear, Ir.c. (GPUN), acting for itself and on behalf of Metropolitan Edison Company (Met-Ed), Jersey Central Power & Light Company (JCP&L), and Pennsylvania Electric Company (Penelec), thejoint applicants in connection with the proposed transfer of the TMI-l license to AmerGen, hereby submit the comments set forth in Attachment I hereto on the proposed Order, proposed conforming amendment, and draft safety evalutaion with respect to the proposed license transfer which were provided to the applicants by letter dated March 4,1999.
AmerGen and GPUN appreciate the opportunity to review and comment on these drafts in order to assure that these documents accurately reflect the terms of the proposed sale of TMI-l and the commitments made by AmerGen and GPUN in connection with the proposed license transfer. If you have any questions about any of these comments, please call John Matthews at 202-467-7524.
3 Sincerely,
'v].
evin. Gallen David R. Lewis Morgan, Lewis & Bockius, LLP Shaw Pittman Potts & Trowbridge ATTORNEYS FOR AMERGEN ATTORNEYS FGR GPUN Enclosure (As stated) cc:
Administrator, Region I g
TMI Senior Resident Inspector TMI-l Senior Project Manager l
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GPUN File No. 98152 awnna h
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.s ATTACHMENT 1 AMERGEN AND GPUN COMMENTS ON PROPOSED ORDER, PROPOSED CONFORMING AMENDMENT AND DRAFT SAFETY EVALUATION TRANSMITTED BY NRC LETTER DATED MARCII 4,1999 (March 15,1999)
For ease of reference, the comments of AmerGen and GPUN are grouped by document.
Suggested language is provided, and any explanation, as necessary, is provided in brackets "[ ]"
following the comment.
COMMENTS ON PROPOSED ORDER Reference Comment Page 1, end of Article I:
Replace last word "GPUN" with "GPU, Inc."
Page 5, Condition (5):
Ref'., the words " deposited in the decommissioning trust for TMI-at the time of the transfer of the TMI-l license to AmerGen." with "to be held in the decommissioning trust (s) for TMI-1 following the transfer of the TMI-1 license to AmerGen, including any amounts held in any decommissioning trust (s) that may continue to be maintained by GPU Energy after such license transfer."
[These changes are intended to assure that this condition reflects the fact that AmerGen can take credit for any decommissioning trust funds maintained by GPU Energy which are not immediately transferred to AmerGen at the time oflicense transfer.]
Page 5, Condition (7):
Replace the first paragraph of this condition with the following:
(7) If the assets of any decommissioning trust maintained by GPU Energy for TMI-l are retained in such trust following the transfer of the TMI-l license to AmerGen instead of being transferred to any trust established by AmerGen, GPU Energy shall maintain the assets so retained in such trust in accordance with the application for tM transfer of
the TMI-l license and the supplements thereto. In addition, the trust agreement for any such GPU Energy trust shall contain the following provisions or be consistent with the following:
[This change is intended to assure that the condition recoglizes that (1) all of the TMI-l decommissioning funds may be transferred to AmerGen at the time of the license transfer (eg.,if favorable tax rulings are obtained); (2) GPU Energy wi:1 not
" establish" a new qualified trust;(3) GPU Energy may mair ain o
funds in more than one trust; and (4) Condition (7) enly ar to the decommissioning trust (s) maintained by GPU Energy
.ny.]
Page 5, Condition (7)(c):
Replace "or any entity owning one or more nuclear power plants shall be prohibited" with "shall be prohibited, except fc-investments tied to market indexes or other mutual funds. Except for such investments, investments in any entity owning one or more nuclear power plants would ordinarily be inappropriate "
{This change is requested for two reasons: (1) exception language is added regarding investments tied to market indexes or other 1
mutual funds to be consistent with FERC rules at 18 CFR 35.32(a)(8); and (2) the restriction on investments in other entities
)
operating nuclear power plants is clarified to more clearly reflect the NRC guidance in NUREG-1577, Rev.1,Section III.2.d.(1)(b),
which is not intended to force liquidation ofinvestments or prohibit investments in all cases.]
PROPOSED OPERATING I ICENSE Page 7, Condition (14):
Insert at the end of Condition (5), ", including any decom.missioning funds maintained by GPU Energy."
IThis insert is intended to assure that this condition reflects the fact that AmerGen can take credit for any decommissioning trust funds maintained by GPU Energy which are not immediately transferred to AmerGen at the time oflicense transfer.]
DRAFT SAFETY EVALUATION Page 2,13:
Strike the words ", with the currently anticipated time frame being in the last half of 1999" at the end of the paragraph.
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Both AmerGen and GPUN are working diligently to effect the proposed transfer promptly, and believe that they will be operationally prepared to complete the transfer by April 1999.
Pursuant to Section 3.1 of the Asset Purchase Agreement, AmerGen and GPUN are committed to completing the transaction fifteen business days after certain conditions are met, including all re;;ulatory approvals having been obtained. However, they have t
not yet obtained all of the other required regulatory approvals and cannot predict when all such approvals will be obtained.]
Page 8,3.0.A,12, Line 4:
Strike "and the common parent company, GPU" and replace "is" with "are".
[Only the three wholly-owned subsidiaries of GPU, Inc. named within the parenthetical are doing business as GPU Energy.]
Page 9, Line 4:
Replace "$418.9 million" with "$402.2 million".
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[S418.9 million reflects the 2 percent credit applied to $311 million; $402.2 million reflects the 2 percent credit applied to $303 million ]
Page 14 (last1) &
1 Page 15 (first1):
This discussion with respect to the UBS, AG filing should be revised so that references to the initial telephone conversation with Kevin Gallen with respect to this matter are replaced with references to the more detailed supplemental information on this matter which was submitted in a letter dated March 4,1999 by Michael J. Egan under Affirmation.
i Page 16,12, Line 8:
After"by AmerGen" insert "and other financial matters. He will also monitor the perfomlance of AmeiGen's nuclea: assets and will provide, from time to time, advice regarding operational matters."
[This insert is intended to assure that the Safety Evaluation more accurately reflects the scope of Dr. JetTrey's intended role, as described at Page A-12 of Appendix A to the application dated December 3,1998.]
Page 18,11 (under" Evaluation of 3
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, Technical Qualifications"): Replace "is remaining in place and unchanged." at the end of the j
paragraph with "is remaining in place and essentially unchanged with the exception of new managers and supervisors who willjoin the site organization."
[This insen is intended to assure that the Safety Evaluation more accurately reflects AmerGen's plans with respect to the onsite management and technical structure, as described at Page A-11 of l
Appendix A to the application dated December 3,1998.]
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