ML20216G382

Order Approving Application Re Merger Agreement Between Duquesne Light Co & Allegheny Power Systems,Inc

ML20216G382
Person / Time
Site:	Perry
Issue date:	03/11/1998
From:	Collins S NRC (Affiliation Not Assigned)
To:	NRC COMMISSION (OCM)
Shared Package
ML20216G377	List: ML20216G374 ML20216G382 ML20216G390
References
NUDOCS 9803190389
Download: ML20216G382 (5)

Text

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e 7590-01-P )

UNITED STATES OF AMERICA NUCLEAR REGULATORY COMMISSION in the Matter of )

)

THE CLEVELAND ELECTRIC ) Docket No. 50-440 ILLUMINATING COMPANY )

CENTERIOR SERVICE COMPANY )

DUQUESNE LIGHT COMPANY )

OHIO EDISON COMPANY )

OES NUCLEAR, INC. ) s PENNSYLVANIA POWER COMPANY )

TOLEDO EDISON COMPANY )

)

(Perry Nuclear Power Plant, Unit 1) )

ORDER APPROVING APPLICATION REGARDING MERGER AGREEMENT BETWEEN DQE, INC. AND ALLEGHENY POWER SYSTEM, INC.

1.

The Cleveland Electric liluminating Company (CEI), Centerior Service Company (CSC),

Duquesne Light Company (DLC), Ohio Edison Company, OES Nuclear, Inc., Pennsylvania Power Company, and Toledo Edison Company are the licensees of Perry Nuclear Power Plant, Unit 1 (PNPP). CEI and CSC act as agents for the other licensees and have exclusive responsibility for and control over the physical construction, operation, and maintenance of PNPP as reflected in Facility Operating License No. NPF-58. The Nuclear Regulatory Commission (NRC) issued License No. NPF-58 on March 18,1986, pursuant to Part 50 of Tdle 10 of the Code of Federal Regulations (10 CFR Part 50). The facility is located on the shores of Lake Erie in Lake County, Ohio, approximately 35 miles northeast of Cleveland, Ohio.

II.

l Under cover of a letter dated August 1,1997, DLC submitted an application for consent under 10 CFR 50.80 regarding a proposed merger of DQE, Inc. (the parent holding company of DLC), and Allegheny Power System, Inc. which would result in DQE, Inc. becoming a wholly l

1 9803190389 980311 PDR ADOCK 05000440 P. PDR

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owned subsidiary of Allegheny Power System, Inc. Allegheny Power System, Inc. would change its name to Allegheny Energy, Inc. (Allegheny Energy). CEl, CSC, Ohio Edison 4

Company, OES Nuclear, Inc., Pennsylvania Power Company, and Toledo Edison Company are i

l not involved in the merger. Supplemental information was submitted by letter dated l

October 30,1997. l Under the proposed merger, DLC will become an indirect subsidiary of Allegheny Energy by reason of DQE, Inc. becoming a subsidiary of Allegheny Energy. DLC and the other i current licensees will continue to hold the license, and no direct transfer of the license will result I

from the merger. On October 21,1997, a Notice of Consideration of Approval of Application i

Regarding Proposed Corporate Restructuring was published in the Federal Register (62 FR l 54655). An Environmental Assessment and Finding of No Significant Impact was published in l the Federal Register on October 21,1997 (62 FR 54657).

Under 10 CFR 50.80, no license shall be transferred, directly or indirectly, through transfer of control of the license, unless the Commission gives its consent in writing. Upon review of the information submitted in the application and letters of August 1,1997. and '

October 30,1997, the NRC staff has determined that the proposed merger will not affect the qualifications of DLC as holder of Facility Operating License No. NPF-58, and that the transfer j of control of the license, to the extent effected by the propoced merger, is otherwise consistent with applicable provisions of law, regulations, and orders issued by the Commission, subject to the conditions set forth herein. These findings are supported by a safety evaluation dated March 11, 1998.  !

lll.

Accordingly, pursuant to Sections 161b,1611,161o, and 184 of the Atomic Energy Act of 1954, as amended; 42 USC $9 2201(b),2201(i),2201(o), and 2234; and 10 CFR 50.80, IT l

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> IS HEREBY ORDERED that the Commission approves the application regarding the merger agreement between DQE, Inc. and Allegheny Power System, Inc. subject to the following:

(1) DLC shall provide the Director of the Omce of Nuclear Reactor Regulation with a copy of I any application, at the time it is filed, to transfer (excluding grants of security interests or liens) l l

from DLC to its first- or second- tier parent or to any other affiliated company, facilities for the production, transmission, or distribution of electric energy having a depreciated book value exceeding 10 percent of DLC's consolidated net utility plant, as recorded on DLC's books of account; and (2) should the merger not be completed by December 31,1998, this Order shall become null and void, unless upon application and for good cause shown, this cate is I

extended.

This Order is effective upon issuance.

IV.

By April 17, 1998 , any person adversely affected by this Order may file a request for a hearing with respect to issuance of the Order. Any person requesting a hearing shall set forth with particularity how such person's interest is adversely affected by this Order and shall address the criteria set forth in 10 CFR 2.714(d).

If a hearing is to be held, the Commission willissue an order designating the time and place of such hearing.  ;

The issue to be considered at any such hearing shall be whether this Order should be sustained. I Any request for a hearing must be filed with the Secretary of the Commission, U.S.

Nuclear Regulatory Commission, Washington, DC 20555-0001, Attention: Rulemakings and ,

Adjudications Staff, or may be delivered to the Commission's Public Document Room, the i Gelman Building,2120 L Street, NW., Washington, DC, by the above date. Copies should also ,

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• be sent to the Office of the General Counsel and to the Director, ONice of Nuclear Reactor Regulation, U.S. Nuclear Regulatory Commission, Washington, DC 20555-0001, and to John O'Neill, Esq., Shaw, Pittman, Potts and Trowbndge,2300 N Street, NW., Washington, .DC 20037, attorney for the licensee.

For further details with respect to this action, see DLC's application dated August 1, 1997, and supplemental letter dated October 30,1997, and the safety evaluation dated Nrch 11,1998 , which are availabid for public inspection at the Commissions's Public Document Room, the Gelman Building,2120 L Street, NW., Washington, DC, and at the local public document room located at the Perry Public Library, 3753 Main Street, Perry, OH.

FOR THE NUCLEAR REGULATORY COMMISSION irector ONice of Nuclear Reactor Regulation bated at Rockville, Maryland, this lith day of March 1998.

1

a a l be sent to the Office of the General Counsel and to the Director, Office of Nuclear Reactor l Regulation, U.S. Nuclear Regulatory Commission, Washington, DC 20555-0001, and to John O'Neill, Esq., Shaw, Pittman, Potts and Trowbridge,2300 N Street, NW., Washington, DC 20037, attorney for the licensee. l For further details with respect to this action, see DLC's application dated August 1, 1997, and supplemental letter dated October 30,1997, and the safety evaluation dated hth 11,1R , which are available for public inspection at the Commissions's Public Document Room, the Gelman Building, 2120 L Street, NW., Washington, DC, and at the local public document room located at the Perry Public Library,3753 Main Street, Perry, OH.

FOR THE NUCLEAR REGULATORY COMMISSION WCIWW WJ. Collins Samuel J. Collins, Director Office of Nuclear Reactor Regulation D'ated at Rockville, Maryland, this lith day of March 1998.

4 DOCUMENT NAME: G:\ PERRY \PER99357.ORD T3 receive a copy of this document. Indicate in the bor "C" = Copy without enclosures "E" = Copy with enclosures "N" = No copy e OFFICE PDill-3:PM , p E TECH ED PDill-3:LA E PGEB:(A)BC OGCMT NAME DPickett ' BCalure* EBamhill Q/$ - TEssig* _ %. H1M\

DATE 03/ G /98 02/26 /98 03/46/98 02/03/98 _ Ob fo/98 ummmmmmmunsummmmmmmmmmune umummumummmuumimmu a summemaimumummuni OFFICE PDill-3:(A)D E DRPW:(A)D (A)AD:ADPR .N f NAME RSavio* EAdensam* BBoger* 8'SCo W DATE 02/08/98 02/18/98 02/20/98 / 03/\\/98

'See previous concurrence pl OFFICIAL RECORD COPY [

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