ML20206A687

Informs of Completion of Review of Re Nepco in Capacity as Minority Shareholder in Vermont Yankee Nuclear Power Corp,Yaec,Myap & Connecticut Yankee Atomic Power Co

ML20206A687
Person / Time
Site:	Vermont Yankee, Haddam Neck, Yankee Rowe, Maine Yankee
Issue date:	04/22/1999
From:	Collins S NRC (Affiliation Not Assigned)
To:	Murphy M LEBOEUF, LAMB, LEIBY & MACRAE
Shared Package
ML20206A689	List: ML20206A687 ML20206A695
References
NUDOCS 9904280285
Download: ML20206A687 (4)

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[, ,1 UNITED STATES NUCLEAR REGULATORY COMMISSION

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yri' 22. 1999 Mary A. Murphy Esq.

LeBoeuf Lamb, Greene & McRae, L.L.P.

1875 Connecticut Avenue, NW Washington, DC 20009-5728

Dear Ms. Murphy:

The staff has completed its review of your letter dated March 29.1999, concerning New England Power Company (NEP) in its capacity as a minonty shareholder in Vermont Yankee Nuclear Power Corporation. Yankee Atomic Electric Company, Maine Yankee Atomic Power Company, and Connecticut Yankee Atomic Power Company (" Yankee companies"). You requested Nuclear Regulatory Commission (NRC) confirmation that no NRC action or approval is required relative to the NRC licenses held by the Yankee companies for their four nuclear power plants (" Yankee plants) and the proposed acquisition by The National Grid Group plc of New England Electnc System, the parent of NEP.

You have noted that NEP is a minonty shareholder in each of the four Yankee companies, and \f that NEP does not control them or the conduct of licensed activities. You have also stated that, given these facts, the proposed indirect ownership change of NEP does not involve an indirect l

transfer of any of the NRC licenses for the four Yankee plants. You do acknowledge, however, that "the same safety and national secunty considerations in support of NRC approval" of the /

indirect license transfers for Millstone 3 and Seabrook, for which an application has been filed, /

apply to the Yankee plants as well.

Even though NEP is not directly a holder of the licenses for the four Yankee plants, NEP has direct obligations to the four Yankee plants which are similar to those NEP has as a direct co-owner and licensee of the Millstone 3 and Seabrook nuclear power plants, as noted below:

1. Through participation agreements with the Yankee companies, NEP is responsible for providing its share of operating funds and decommissioning funds for each of the four Yankee plants in proportion to its ownership share in each of the Yankee companies.

2. NEP is listed on the bonds which insure each of the four Yankee plants and has significant insurance obligations to each of them.

O These obligations have a direct bearing on matters vver which the NRC has regulatory responsibilities, and place NEP in a unique position distinguishable from that typical o' an ordinary shareholder. Furthermore, because a foreign corporation will be in a position to at least influence the Yankee companies, albeit indirectly through NEP, the issue of whether the foreign control prohibition in the Atomic Energy Act would be violated as a result of the National Grid acquisition has been raised.

9904280285 990422 r PDR ADOCK 05000029 M PDR ,

D M. Murphy April 22,1999 The staff has concluded in light of the above that. regarding the licenses for the Yankee plants.

the proposed indirect change in the ownership of NEP requires at least NRC threshold review The staff willincorporate the application that has been filed with respect to the Millstone 3 and Seabrook licenses as part of its review concerning the Yankee plants. Should it be determined.

as a result of staff's review. that considerations relevant to 10 CFR 50.80. including the foreign control prohibition. would be problematical. the staff will promptly inform you.

Sincerely.

Sa s or Office of Nuclear Reactor Regulation Docket Nos.50-029. 50-213 50-271 50-309

M. Murphy - -2 April 22, 1999 The staff has concluded in light of the above that, regarding the licenses for the Yankee plants, the proposed indirect change in the ownership of NEP requires at least NRC threshold review.

The staff willincorporate the application that has been filed with respect to the Millstone 3 and Seabrook licenses as part of its review concerning the Yankee plants. Should it be determined, as a result of staffs review, that considerations relevant to 10 CFR 50.80, including the foreign control prohibition, would be problematical, the staff will promptly inform you.

Sincerely, Original Signed By:

Samuel J. Collins, Director Office of Nuclear Reactor Regulation Docket Nos.50-029, 50-213, 50-271, 50-309 DISTRIBUTION:

Docket File (w/ incoming)(YT019990086) MUBLIC (w/ incoming)(YT019990086)

RGEB (w/ incoming)(YT019990086) NRR Mailroom (w/ incoming)(YT019990086)

SCollins/RZimmerman WKane BSheron DMatthews/SNewberry CCarpenter RWood AMcKeigney MManahan BZaleman Document Name

• See Previous Concurrences

' OFFICE RGEB RGEB* (SC)RGEB* C:RGEB*

Name AMcKeigney:sNM RWood BZaleman CCarpenter Date 4r)0/99 4/14/99 4/14/99 4/20/99 OFFICE D: DRIP OGC y,c D[ )

NAME DMattheh ') . Mg . , Sbs DATE 4/ 9/99 W 4/ 11/99 4/tt /99 OFFICIAL OFFICE COPY I

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FROM: ORIGINAL DUE DT: 04/21/99 TICKET NO: 019990086 '

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DOC DT: 03/29/99 NRR RCVD DATE: 03/31/99 l

l TO: l Sam Collins FOR SIGNATURE OF , ** YEL **

DESC: ROUTING:

NRC Docket Nos.50-029; 50-213; 50-271; and 50-309 Collins /Zimmermn Kane Sheron j NRR Mailroom I ASSIGNED TO: CONTACT:

DRIP Matthews SPECIAL INSTRUCTIONS OR REMARKS:

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