ML20207S230
| ML20207S230 | |
| Person / Time | |
|---|---|
| Site: | Perry  |
| Issue date: | 03/16/1987 |
| From: | Office of Nuclear Reactor Regulation |
| To: | |
| Shared Package | |
| ML20207S224 | List: |
| References | |
| NUDOCS 8703190155 | |
| Download: ML20207S230 (3) | |
Text
_.
4 j
o UNITED STATES i
~g NUCLEAR REGULATORY COMMISSION o
g B
WASHINGTON, D. C. 20555
/
i SAFETY EVALUATION BY THE OFFICE OF NUCLEAR REACTOR REGULATION SUPPORTING AMEN 0 MENT NO. 2 TO FACILITY OPERATING LICENSE NO. NPF-58 CLEVELAND ELECTRIC ILLUMINATING COMPANY DUQUESNE LIGHT COMPANY OHIO EDISON COMPANY PENNSYLVANIA POWER COMPANY TOLEDO EDIS0N COMPANY PERRY NUCLEAR POWER PLANT, UNIT NO. I 1
DOCKET NO. 50-440
1.0 INTRODUCTION
By letter dated January 23, 1987, which was supplemented on March 3, 1987, the licensees requested approval for Ohio Edison Company (OE) to 1
sell and lease back part or all of its 30 percent ownership interest in Perry Nuclear Power Plant (PNPP) Unit I and the PNPP comon facilities which are shared with Unit 2.
The basic tenn of the leases is expected to be approximately 291 years and OE will have the option to renew each lease for at least two years.
[
2.0 EVALUATION The sale and leaseback transactions described in this application are similar in all significant respects to the transactions previously approved by the Commission with respect to various cwnership interests in the Palo Verde Nuclear Generating Station (PVNGS). The first of these involved the sale and leaseback transactions by the Public Service Company 1
of New Mexico relative to PVNGS Unit I which were authorized by an amend-i ment to the PVNGS Unit I license on December 26, 1985 (see 51 FR 1883).
i Since then, additional similar transactions were authorized for PVNGS Unit I by license amendments issued on June 2, 1986, and December 1, 1986, and for PVNGS Unit 2 by license amendments issued on August 12, 1986; August j
l 15, 1986; and December 11, 1986. These amendments all contain license t
conditions identical to those which were included in the aforementioned i
December 26, 1985 amendment pursuant to a Commission order of December 12, 1985.
l Accordingly, this application proposes that the Perry Unit 1 license be amended and conditioned in the same manner by adding the following new paragraph 2.B(7):
8703190155 070316 PDR ADOCK 05000440 P
^
~
^
^-
_. ~..
(a) Ohio Edison company is authorized to transfer any portion of its 30.0% ownership share in PNPP Unit I and proportionate share of its interest in the PNPP common facilities to certain equity investors identified in its' submission of~
, and at the same time to lease back from such purchasers such interest sold in the PNPP Unit I facility. The tenn of the lease is for approximately 296 years subject to a right of renewal. Such sale and leaseback transactions are subject to the representations and conditions set forth in the above mentioned application of
, as well as the letter of the Director of the Office of Nuclear Regulation dated
, consenting to such transactions.
Specifically, a lessor and anyone else who may acquire an interest under these transactions are prohibited from exercising directly or indirectly any control over the licenses of PNPP, Unit 1.
For purposes of this condition the limitations in 10 CFR 50.81, as now in effect and as may be subsequently amended, are fully applicable to the lessor and any successor in interest to that lessor as long as the license for PNPP Unit I remains in effect; these financial transactions shall have no effect on the license for the Perry Nuclear facility throughout the tenn of the license.
)
(b) Further, the licensees are also required to notify the NRC in writing prior to any change in:
(1) The terms or conditions of any lease agreements executed as part of these transactions, (ii) the PNPPOperatingagreement,(iii)theexistingpropertyinsurance 1
coverage for PNPP, Unit 1, and (iv) any action by a lessor or others that may have an adverse effect on the safe operation of the facility.
i Consistent with the above condition 2.B(7), the licensees' submittal of January 23, 1987, states that:
"Neither the owner trustee nor any of the equity investors will have (i) any ability to restrict or inhibit compliance with the security, safety, or other regulations of the Commission (ii) any capacity to control the use or disposal of Unit I nuclear fuel, or (iii) any right to use or direct the use of Unit 1 or any other part of PNPP. Although legal title to Unit I will l
reside with the owner trustee, the current regime of control, l
supervision, and responsibility will be unaltered by the proposed transactions. CEI is and will remain responsible to the Connission for the proper operation and maintenance of Unit 1."
In the March 3,1987 submittal, the licensees identified Public Service Electric & Gas Company as one of the potential investors, thus raising the question of antitrust possibilities.
In reviewing the PVNGS transactions, the staff determined that where the investor owners do not acquire the right to electric power generation at the facility, and such electricity will continue to be distributed in the same manner as is now set forth in the operating agreement, "the transaction does not present
~..L=.~-~
L.~.:-. ~ ~
^
~
~ ^ ^
^^
~
I any antitrust considerations not previously considered at the time of the license." (SECY-85-367 at 9). The potential transaction for OE's ownership interest is no different in this respect.
3.0 CONTACT WITH STATE OFFICIAL 4
The Ohio Department of Industrial Relations has been advised of the proposed determination of no significant hazards considerations with regard to the amendments. No comments were received.
4.0 ENVIRONMENTAL CONSIDERATION
S
~.,
This amendment only involves the administration of the credit and financial arrangements for Perry Unit 1.
The parties will enter into agreements which provide for the sale and lease back of ownership shares by OE under terms requiring continued full control and responsibility over these ownership shares by OE. The lessors and anyone else who may acquire an interest under these transactions are prohibited from exercising, directly or indirectly, any control of the licensees. The amendments also include a reporting requirement that the NRC must be notified in writing prior to any change in the executed lease agnemments, the PNPP participation agreement, and the existing insurance policies. Accordingly, the amendments meet the eligibility criteria for categorical exclusion set forth in 10 CFR 51.22 (c)(10).
1
5.0 CONCLUSION
The staff has concluded, based on the considerations discussed above, that:
(1) there is reasonable assurance that the health and safety of the public will not be endangered by operation in the proposed manrer, and (2) such activities will be conducted in compliance with the Commission's regulations and (3) the issuance of amendments will not be inimical to the common defense and the security or to the health and safety of the public.
We, therefore, conclude that the requested authorization is acceptable.
Dated: March 16, 1987 i
i Principal Reviewer: Paul H. Leech I
i t
1 1
-