ML20211P077
| ML20211P077 | |
| Person / Time | |
|---|---|
| Site: | Davis Besse, Perry  |
| Issue date: | 10/07/1997 |
| From: | Marcus G NRC (Affiliation Not Assigned) |
| To: | Aubrecht G OHIO STATE UNIV. HOSP. COLUMBUS, OH |
| References | |
| NUDOCS 9710200047 | |
| Download: ML20211P077 (4) | |
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...ee October 7, 1997 Gordon J. Aubrecht,11 Professor of Physics Ohio State University 174 West 18th Avenue Columbus, Ohio 43210 1106
Dear Dr. Aubrecht:
Thank you for your interest in the proposed merger of Centerior Energy Corporation and Ohio Edison Company. Your message of August 22,1997, to Chairman Jackson of the Nuclear Regulatory Commission (NRC), on behalf of the Citizen's Advisory Committee (CAC) of the Utility Radiological Safety Board of Ohio, provided CAC Resolution 97-003.
- While the proposed merger is being promoted for consumer cost savings by eliminating duplication, CAC Resolution 97-003 cautions that a cost cutting prograrn that operates
- across the board may adversely impact nuclear safety at the Davis Besse and Perry facilities. Your message further states that,in the opinion of the CAC, a single safety officer of the combined facilities, which may occur as a result of the merger, would not be desirable.
Separate from the proposed merger, a common ownership of both the Davis Besse and Perry facilities currently exists. Toledo Edison Company (TEC), The Cleveland Electric illuminating Company (CEI), and Centerior Service Company (CSC) are currently wholly owned subsidiaries under the parent company, Centerior Energy Corporation. The merger would result in the formation of a new single holding company, FirstEnergy Corporation.
With regard to the ownership of nuclear power facilities, the proposed merger of Centerior Energy Corporation with Ohio Edison Company would bring the Beaver Valley facility, located in Beaver Falls, Pennsylvania, within the same ownersh!p.
Individual letters on both the Davis Besse and Perry dockets were submitted on December 13,1996, requesting NRC approval of the proposed merger. The Davls Besse letter was submitted by TEC and CSC whereas the Perry letter was submitted by CEI and CSC.
Notices of Consideration of Approval of Application Regarding Corporate Restructuring were published in the Federal Renister (FR) on April 14,1997 (62 FR 18156), and April 15, 1997 (62 FR 18369), for the Davis Besse and Perry dockets, respectively, in the FR notices, it was stated that the merger will have no adverse effect on either the technical management or operation of the Davis Besse or Perry plants.- The technical management -
and nuclear organization of the plant operators will continue to remain responsible for plant operation and maintenance after the merger.
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1-G. Aubrecht,
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- By separate letters dated June 19,1997, NRC issued Orders to both the Davis Besse and Perry dockets approving the application regarding the proposed merger between Centerior Energy Corporation and Ohio Edison Company, resulting in the formation of a new holding company, FirstEnergy Corporation. Therefore, NRC sction on these submittals is complete.
it should be noted, however, that on July 16,1997, the Federal Energy Regulatory i
Commission issued an Order that delayed the merger and raised concerns about possible
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competitive problems with the merger.
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During the staff review of the proposed merger, concerns focused on the financial ability of i
FirstEnergy Corporation to support the safe operation of the combined nuclear facilities. In the staff's safety evaluation attached to the above-mentioned Orders, the following was l
stated:
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... In view of the NRC's concem that restructuring can lead to a diminution of i
assets necessary for the safe operation and decommissioning of a licensee's nuclear pcwor plant, the NRC has sought to obtain commitments from its licensees that j
initiate restructuring actions not to transfer significant assets from the licensee without notifying the NRC. Each licenses that will be affiliated with FirstEnergy has agreed:
to provide the Director of the Office of Nuclear Reactor Regulation, a l
copy of any application, at the time it is filed, to transfer (excluding grants of security interests of liens) from such licensee to its proposed i
parent, or to any other affiliated company, facilities for the production, J
transmission, or distribution of electric energy having a depreciated book value exceeding 10 percent of such licensee's consolidated not utility plant, as recorded on the utility's books of account."
The staff believes that this commitment will enable the NRC to ensure that the plant operators (CEI and TEC for Davis Besse and CEl, TEC, Ohio Edison Company, OES Nuclear,
- inc., and Pennsylvania Power Company for Perry) will continue to maintain adequate resources to contribute to the safe operation and decommissioning of the Davis Besse and Perry f acilities.
The staff will continue its policy of maintaining NRC resident inspectors assigned full time to both the Davis Besse and Perry facilities. The resident inspectors will ensure that both facilities continue to meet NRC regulations such that an adequate level of protection will be provided to the public, in addition, they will be sensitive to any reduction in plant safety
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that may result from the merger, i
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.s G. Aubrecht 3-I hope that this letter is responsive to your concerns. If you have additional questions or concerns, please do not hesitate to contact Douglas Pickett of my staff at 301 415 1364.
Sincerely, 1
Original signed by:
Gail H. Marcus, Director Project Directorate lll 3 Division of Reactor Projects Ill/IV Office of Nuclear Reactor Regulation Docket Nos. 50 346 and 50 440 DISTRIBUTION:
Docket Files (50 346 and 50-440)
PUBLIC PDill 3 r/f EDO#G970617 JCallan AThadani HThompson PNorry JBlaha SBurns SCollins/FMiraglia RZimmerman BSheron JRoe WTravers EAdensam (EGA1)
GMarcus MThadani MBoyle (MLB4)
OGC OPA OCA SECY# CRC 97 0865 NRR Mall Room (EDO# G970617 w/ incoming)
KBohrer.
NOlson THarris GGrant, Rlli DOCUMENT NAME: G:\\ PERRY \\AUBRECHT.LTR To receive a copy of tNo document. Indicate in the box: "C" = Copy wthout enclosures "E" = Copy with enclosures "N" = No copy 0FFICE PM:PD3-3 JC LA:PD3-3 l C D:PD3-3 l C l
l NAME DPickett " '
CBoyle AA GMarcus_(Wf7 DATE-
[O/ L/97 0 / go/9A fo/ "I /97 0FFICIAL RECORD COPY
t G. Aubrecht 3-I hope that this letter is responsive to your concerns, if you have additional questions or concerns, please do not hesitate to contact Douglas Pickett of my stati at 3014151364.
Sincerely, Original signed by:
Gail H. Marcus, Director Project Directorate 1113 Division of. Reactor Projects ill/IV Office of Nuclear Reactor Regulation Docket Nos. 50 346 and 50-440 DISTRIBUTION:
Docket Files (50 346 and 50-440)
PUBLIC PDill 3 r/f EDO#G970617 JCallan AThadani HThompson PNorry JBlaha SBurns SCollins/FMiraglia RZimmerman BSheron JRoe WTravers EAdensam (EGA1)
GMarcus MThadeni MBoyle (MLB4)
OGC OPA OCA SECY# CRC 97-0865 NRR Mail Room (EDO# G970617 w/ incoming)
KBohrer NOlson THarris GGrant, Rlli DOCUMENT NAME: G:\\PERRYtAUBRECHT.LTR T3 receive a copy of thle document. Indicate in the boa: T e Copy without enclosurse T = Copy wsh onciosures T = No copy 0FFICE PM:PD3-3 JC LA:PD3-3 lC D:PD3-3 l C l
l NAME DPickett " '
CBoyle AA GMarcus (i WI DATE
[O/2_/97 (f /%/9E
/0/ 7 /97 0FFICIAL RECORD COPY
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