ML20214K536
| ML20214K536 | |
| Person / Time | |
|---|---|
| Site: | Palo Verde  |
| Issue date: | 08/15/1986 |
| From: | Miraglia F Office of Nuclear Reactor Regulation |
| To: | |
| Shared Package | |
| ML20214K538 | List: |
| References | |
| NUDOCS 8608210194 | |
| Download: ML20214K536 (3) | |
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UNITED STATES
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y-NUCLEAR REGULATORY COMMISSION WASHINGTON, D. C. 20555 s..,...
ARIZONA PUBLIC SERVICE COMPANY, ET AL.*
DOCKET N0. STN 50-529 PALO VERDE NUCLEAR GENERATING STATION, UNIT NO. 2 AMENDMENT TO FACILITY OPERATING LICENSE Amendment No. 3 License No. NPF-51 1.
The Nuclear Regulatory Commission (the Comission) has found that:
A.
The present amendment, issued in response to the April 15, 1986 application (and supplemental letters dated June 3 July 30, August 7, August 8, and August 13,1986) by the Arizona Public Service Company with respect to a sale and leaseback financing transaction by licensee, El Paso Electric Company complies with the standards and requirements of the Atomic Energy Act of 1954, as amended (the Act) and the-Commission's regulations set forth in 10 CFR Chapter I; b.
In approving the aforementioned application the Director of the Office of Nuclear Reactor Regulation, by letter of August 15, 1986, stated:
This approval is subject to the condition that the lessor and anyone else who may acquire an interest under the transaction which is the subject of this application are prohibited from exercising directly or indirectly any control over the licensees of the Palo Verde nuclear facility. For purposes of this condition, the limitations in 10 C.F.R. 50.81 " Creditor Regula-tions," as now in effect and as these may be subsequently amended, are fully applicable to the named lessor and any successor in interest to that lessor as long as the license for Palo Verde Nuclear Generating Station, Unit 2, remains in effect. This financial transaction shall have no effect on the license for the Palo Verde Nuclear Generating Station, Unit 2.
- The other licensees are the Salt River Project Agricultural Improvement and Power District, El Paso Electric Company, Southern California Edison Con'pany, Public Service Company of New Mexico, Los Angeles Department of Water and Power, and Southern California Public Power Authority.
8608210194 860815 DR ADOCK 05000529 PDR
- 2..
This transaction is similar to that approved by the Commission in its Order of December 12, 1985, with regard to the sale and leaseback of PNM's interest in Palo Verde Unit 1.
Subject to the foregoing, the Comission hereby approves the application under.the conriitions set forth in the enclosed Amendment No. 3 to the Palo Verde Unit 2 license.
C.
The facility will operate in conformity with the above application and the Director of the Office of Nuclear Reactor Regulation's letter of August 15, 1986, the provisions of the Act, and the regulations of the Comission; D.
There is reasonable assurance (1) that the activities authorized by this amendment can be conducted without endangering the health and safety of the public, and (ii) that such activities will be conducted in compliance with the Comission's regulations; E.
The issuance of this amendment will not be inimical to the common defense and security or to the health and safety of the public; F.
The issuance of this amendment is in accordance with 10 CFR Part 51 of the Commission's regulations and all applicable requirements have been satisfied.
G.
The present amendment authorizes any such sale and leaseback transactions made pursuant thereto until September 30, 1986.
2.
Accordingly, Paragraph 2.B(7) is hereby added to read as follows:
(7)(a)
El Paso Electric Company is authorized to transfer all or a portion of its 15.8% ownership share in Palo Verde Unit 2 and a proportionate share of a third of its interest in the Palo Verde comon facilities to certain equity investors identified in its submission of August 7, 1986, and at the same time to lease back from such purchasers such interest sold in the Palo Verde plant. The term of the lease is for approximately 27 years subject to a right of renewal. Any such sale and leaseback transaction is subject to the representations and conditions set forth in the aforementioned application of April 15, 1986, and the subsequent submittals dated June 3, July 30, August 7 August 8, and August 13, 1986, as well as the letter of the Director of the Office of Nuclear Reactor Regulation dated August 15, 1986, consenting to such transactions. Specifically, the lessor and anyone else who may acquire an interest under this transaction are prohibited from exercising directly or indirectly any control m.
'. over the licensees of the Palo Verde Nuclear Generating Station, Unit 2.
Foi purposes of this condition the limitations in 10 CFR 50.81, " Creditor Regulations," as now in effect and as they may be subsequently amended, are fully applicable to the lessor and any successor in interest to that lessor as long as the license for Palo Verde Unit 2 remains in effect; this financial transaction shall have no effect on the license for the Palo Verde nuclear facility throughout the term 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 this transaction; (ii) the ANPP Participation Agreement, (iii) the existing property insurance coverage for the Palo Verde nuclear facility, Unit 2 as specified in licensee counsel's letter of November 26, 1985, and (iv) any action by the lessor or others that may have an adverse effect on the safe operation of the facility.
3.
This license amendment is effective as of the date of issuance.
FOR THE NUCLEAR R2GULATORY COMMISSION E-Frank J661ra 1
, Director Division of PWR Licensing-B Date of Issuance: August 15, 1986
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