ML20206P083

Summary of 990428 Meeting with Firstenergy Nuclear Operating Co & Duquesne Light Co in Rockville,Maryland Re Proposed Asset Transfer Between Firstenergy Corp & Dl & Resulting 10CFR50.80 License Transfer of Dl Ownership Interest

ML20206P083
Person / Time
Site:	Beaver Valley, Perry
Issue date:	05/12/1999
From:	Pickett D NRC (Affiliation Not Assigned)
To:	NRC (Affiliation Not Assigned)
References
NUDOCS 9905180141
Download: ML20206P083 (25)

Text

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NUCLEAR REGULATORY COMMISSION WASHINGTON, D.C. 30006 0001

\..... May 12, 1999 LICENSEE: FirstEnergy Nuclear Operating Company Duquesne Light Company FACILITY: Perry Nuclear Power Plant, Unit 1 Beaver Valley Power Station, Units 1 and 2 1

SUMMARY

OF APRIL 28,1999 MEETING ON PROPOSED ASSET TRANSFER )

AND 10 CFR 50.80 LICENSE TRANSFER i I

l On April 28,1999, NRC staff , .with representatives of the FirstEnergy Nuclear Operating Company (FENOC) and Duquesne Light Company (DLC) in Rockville, Maryland. The purpose of the meeting was to discuss the proposed asset transfer between FirstEnergy Corporation j (FE) and DLC and the resulting 10 CFR 50.80 license transfer of DLC's ownership interest in the 1 Perry Nuclear Power Plant (Perry) and the Beaver Valley Power Station (Beaver Valley) from DLC to FE. A list of the meeting participants is included as Enclosure 1. A copy of the licensees' meeting handouts is included as Enclosure 2. Figures identifying plant ownership, prepared by the NRC and handed out for information, are included as Enclosure 3.

This was a pre-filing meeting to discuss the proposed asset transfer agreement made between FE and DLC on March 25,1999. The agreement includes the transfer of DLC's partial interests -

in two nuclear facilities (Perry and Beaver Valley) and three fossil fuel facilities to FE. These five power generating facilities are currently jointly owned between DLC and FE. In return, FE will transfer three wholly-owned fossil fuel facilities to DLC. Consistent with DLC's commitment to 1 divest itself of power generating facilities, DLC intends to auction the three newly-acquired FE

- fossil fuel facilities as well as four remaining wholly-owned DLC fossil fuel facilities.

With regard to ownership of nuclear facilities, the asset transfer will accomplish the following:

1 FE, which is currently the majority owner of Perry with FENOC as the operator, will become 100% owner of Perry. DLC's 13.74% interest in Perry will be transferred to The

- Cleveland Electric Company, a subsidiary of FE.

2 FE, which is currently the majority owner of Beaver Valley, will become 100% owner of f j

Beaver Valley with FENOC as the operator. DLC's 47.5% interest in Beaver Valley /

Unit 1, will be transferred to Pennsylvania Power, a subsidiary of FE. DLC's 13.74% ,

interest in Beaver Valley Unit 2, will also be transferred to Pennsylvania Power. p/N 3 DLC, which is currently the minority owner and operator of Beaver Valley, will no longer have ownership interests in either Perry or Beaver Valley.

FE's 100% ownership and operation of Davis-Besse will be unaffected by the proposed asset transfer.

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9905180141 990512 PDR ADOCK 05000334 P PDR

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l The licensees stated that the proposed transaction will not be unique from other 10 CFR 50.80 l- license transfers approved by the staff. Both licensees stated that the proposed actions will be i positive actions within their long term strategic plans. The licensees stressed that the ownership changes will not impact plant operations and that DLC will continue to provide ongoing support services to FENOC at Beaver Valley. In addition, FENOC will honor all previous DLC commitments with regard to operation of Beaver Valley.

The licensees stated that they expect to submit their formal license transfer applications during the first week of May 1999. They will request staff approval by September 30,1999.

Original signed by Douglas V. Pickett, Senior Project Manager, Section 2 Project Directorate ill Division of Licensing Project Management Office of Nuclear Reactor Regulation Docket Nos. 50-334,50-412, 50-440

Enclosures:

as stated h h tF@ ;!sY cc w/ encl: See next page DISTRIBUTION:

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NAME DPicYett EBarnhill & Amend (ofa[/{ CCarpelfter/"

l DATE 05/ 6/99 05/f/99 05/13$9 / 05/l%/99 ' )

0FFICIALRECORD_ COPY l

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'lC0017 u ,

i L. Myers Perry Nuclear Power Plant, Units 1 and 2 FirstEnergy Nuclear Operating Company cc: l James R. Williams

- Mary E. O'Reilly Chief of Staff FirstEnergy Corporation Ohio Emergency Management Agency 76 South Main St. 2855 West Dublin Granville Road Akron, OH 44308 Columbus, OH 43235-7150 Resident inspector's Office Mayor, Village of Perry U.S. Nuclear Regulatory Commission P.O. Box 100 P.O. Box 331 Perry, OH 44081-0100 l Perry, OH 44081-0331 Radiological Health Program Regional Administrator, Region lil Ohio Department of Health U.S. Nuclear Regulatory Commission P.O. Box 118 801 Warrenville Road Columbus, OH 43266-0118 Lisle, IL 60532-4531 Ohio Environmental Protection Sue Hiatt Agency OCRE Interim Representative DERR-Compliance Unit 8275 Munson ATTN: Mr. Zack A. Clayton Mentor, OH 44060 P.O. Box 1049 -l Columbus, OH 43266-0149 Henry L. Hegrat Regulatory Affairs Manager Chairman FirstEnergy Nuclear Operating Company Perry Township Board of Trustees Perry Nuclear Power Plant 3750 Center Road, Box 65 l P.O. Box 97, A210 Perry, OH 44081 Perry, OH 44081  ;

State of Ohio l William R. Kanda, Jr., Plant Manager Public Utilities Commission

. FirstEnergy Nuclear Operating Company East Broad Street Perry Nuclear Power Plant Columbus, OH 43266-0573 P.O. Box 97, SB306 Perry, OH 44081 Mayor, Village of North Perry North Perry Village Hall 4778 Lockwood Road North Perry Village, OH 44081 Donna Owens, Director Ohio Department of Commerce Division ofIndustrial Compliance Bureau of Operations & Maintenance 6606 Tussing Road P. O. Box 4009 Reynoldsburg,' OH 43068-9009

MEETING ATTENDEES FIRSTENERGY NUCLEAR OPERATING COMPANY AND DUQUESNE LIGHT COMPANY PROPOSED ASSET TRANSFER APRIL 28,1999 FIRSTENERGY NUCLEAR OPERATING COMPANY Lew Myers Vice President - Nuclear, Perry Mary O'Reilly FirstEnergy Corporation,-Attomey Henry Hegrat Regulatory Affairs Manager Roy Lessy AKIN, GUMP, STRAUSS, HAVER, AND FELD (Attorney for FirstEnergy)

DUQUESNE LIGHT COMPANY James Cross President Generation Group Morgan O'Brien Vice President, Finance Larry Crayne Mark Aukerman Manager Safety & Licensing Randell Hart Licensing Supervisor Kevin Gallen MORGAN, LEWIS, & BOCKlUS (Attomey for Duquesne Light)

John Mathews . MORGAN, LEWIS, & BOCKlUS (Attomey for Duquesne Light)

NBG John Zwolinski Director, Division of Licensing Project Management Cecil Thomas Project Director, Division of Licensing Project Management Anthony Mendiola Section Chief, Division of Licensing Project Management I Daniel Collins Project Manager, Division of Licensing Project Management l Douglas Pickett Project Manager, Division of Licensing Project Management Steve Hom Office of General Counsel Susan Uttal Office of General Counsel i Cindy Carpenter. Branch Chief, Division of Regulatory Improvement Programs Bob Wood Division of Regulatory Improvement Programs Michael Davis Division of Regulatory Improvement Programs '

Alex McKeigney Division of Regulatory improvement Programs Michael Dusaniwskyj Division of Regulatory improvement Programs MEMBERS OF THE PUBLIC Sarah Londeree' Troutman Sandens Wayne Barber McGraw-Hill Enclosure 1 L.

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FrstEnergy Affouauesne

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l FirstEnergy Nuclear Operating Company /

Duquesne Light Company Nuclear Regulatory Commission Meeting l l

April 28,1999 l FENOC semp q-Enclosure 2

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PERRY FIRSTENERGY CORPORATION DQE, INC.

Wholly Owned Subsidiaries Wholly Owned Subsidiary

• FIRSTENERGY NUCLEAR DUQUESNE LIGHT CO.

OPERATING COMPANY * (13.74% ownership)

' CLEVELAND ELECTRIC CO.

(31.11% ownership)

" TOLEDO EDISON CO.

(19.91% ownership)

OHIO EDISON CO.

4 (30.0% ownership with OES NUCLEAR)

Wholly Owned Subsidiaries

" OES NUCLEAR (30.0% ownership with OHIO EDISON)

PENNSYLVANIA POWER (5.24% ownership)

• Licensee DAVIS BESSE FIRSTENERGY CORPORATION l Wholly Owned Subsidiaries

. FIRSTENERGY NUCLEAR OPERATING COMPANY *

, CLEVELAND ELECTRIC CO.

(51.38% ownership)

" ' TOLEDO EDISON CO.

(48.62% ownership)

• Licensee Enclosure 3

1 BEAVER VALLEY UNIT NO.1 (LicenseesIn Italics) .

[FIRST ENERGY CORPORATION ' DQE, INC.

Wholly Owned Subsidiary Wholly Owned Subsidiary l

FIRSTENERGY NUCLEAR , DUQUESNE L/GHT CO.*

OPERATING COMPANY (47.5% ownership)

OHIO EDISON CO..

(35% ownership)

Wholly Owned Subsidiary 4 PENNSYLVANIA POWER l (17.5% ownership) l

' Acts as agent for other licensees BEAVER VALLEY UNIT NO. 2 (Licenseesin Italics) l

'FIRST ENERGY CORPORATION DQE, INC.

Wholly Owned Subsidiaries Wholly Owned Subsidiary FIRSTENERGY NUCLEAR , . DUQUESNE LIGHT CO.*

OPERATING COMPANY- (13.74% ownership)

CLEVELAND ELECTRIC CO.

(24.47% ownership) .

TOLEDO EDISON CO.

(19.91% ownership)

OHIO EDISON CO.

(41.88% ownership)

• Acts as agent for other licensees 9

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