ML20217D100

Summary of 990901 Meeting with Nmpc,Nyseg & Amergen Energy Co in Rockville,Maryland Re NMPC Plans & Pending Submittal Re Transfer of NMPC Interest & Authorities Under Operating Licenses for Nine Mile Point

ML20217D100
Person / Time
Site:	Nine Mile Point
Issue date:	09/24/1999
From:	Hood D NRC (Affiliation Not Assigned)
To:	NRC (Affiliation Not Assigned)
References
TAC-MA6368, TAC-MA6369, NUDOCS 9910140180
Download: ML20217D100 (24)

Text

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Y ngy D UNITED STATES

-f j NUCLEAR REGULATORY, COMMISSION t WASHINGTON, D.C. 20565-0001

%  ! September 24, 1999 O LICENSEE: Niagara Mohawk Power Corporation FACILITY: . Nine Mile Point Nuclear Station, Units 1 and 2

SUBJECT:

s

SUMMARY

OF SEPTEMBER 1,1999, MEETING REGARDING PROPOSED SALE OF FACILITY (TAC NOS. MA6368 AND MA6369)

On S",-tember 1,1999, representatives of the Niagara Mohawk Power Corporation (NMPC),

Nev. York State Electric and Gas Corporation (NYSEG), and AmerGen Energy Company (AmerGen, a joint venture of Philadelphia Electric Energy Company and British Energy plc) met

), with members of the U.S. Nuclear Regulatory Commission (NRC) staff in Rockville, Maryland.

NMPC requested this meeting to brief the NRC staff on the plans and pending submittal regarding transfel of NMPC's interest and authorities under the operating licenses for Nine Mile Point Nuclear Station, Units 1 and 2 (NMP1 and NMP2), and NYSEG's interest in NMP2, to AmerGen. A list of attendees is provided in Enclosure 1. A copy of the handouts provided by NMPC/AmerGen is provided in Enclosure 2.

Currently, NMPC is the exclusive owner and operator for NMP1. NMPC owns a 41-percent intere t in NMP2, has exclusive responsibility and control over the operation and maintenance of NW2, and acts as agent for the other NMP2 owners. NYSEG is licensed by the Commission to own and possess an 18-percent interest in NMP2. The other owners who may possess, but not operate, NMP2 are Long Island Lighting Company with an 18-percent interest, Rochester Gas and Electric Corporation with a 14-percent interest, and Central Hudson Gas and Electric Corporation with a 9 percent interest.

Under the terms of the sale, AmerGen purchases all of NMP1 from NMPC and the combined 59% share of NMP2 from NMPC and NYSEG. AmerGen would become the operator of both units. NMPC site personnel would become AmerGen employces. The scle also provides that NMPC would purchase 95% of the power from NMP1 for 5 ysars, and NMPC and NYSEG collectively would purchase 56.05% of the output of NMP2ior 3 years. NMPC and NYSEG would make additional deposits to NMP1 and NMP2 decommissioning trust funds and transfer the trust funds to AmerGen at closing.

Mr. Terry of NMPC summarized the contents of the license transfer application that will be submitted to the NRC about September 10,1999. He stated that, in this application, the NRC will be asked to consent to the transfer and authorize AmerGen to posses, use, and operate NMP1 and NMP2 under essentially the same conditions and authorintions included in the existing licenses for NMPC and NYSEG. No physical changes will be made to either unit as a resultof the transfer, and there will be no significant change in the day-to-day operations of either unit. Mr. Boyce of AmerGen/PECO stated that AmerGen will offer employment to essentially all NMPC site employees, and assume the existing International Brotherhood of Electrical Workers Collective Bargaining Agreement with the transferred union employees. He presented Lckground information on AmerGen, noting that there has baen no material change (

in ownership or control of AmerGen since the NRC approved the transfer of the Three Mile Island Unit 1 (TMI 1) license to AmerGen in April 1999. Mr. Boyce noted that, as part of the g\

V plans for continuity of NMP operations, the site organization would be transferred to AmerGen with no material change in NMP operations and maintenance. He noted that, und i p p 4, gg gy PA . '

PDR l

L . . . . . . . _ _ _ _ _ _

C W I j

arrangement, the NRC found AmerGen technically qualified to own and operate TMI-1.

Organizationally, the NMP Senior Vice-President will report to the AmerGen Chief Executive

- Officer / Chief Nuclear Officer. My Boyce also discussed AmerGen's financial qualifications, including arrangements for decommissioning trust funds. He noted that the sale is subject to certain approvals by the Federal Energy Regulatory Commission, the New York State Public Service Commission, the Federal Trade Commission, and the Department of Justice; and that a tax-efficient transfer of decommissioning trust funds from NMPC and NYSEG to AmerGen depends upon certain rulings by the Internal Revenue Service (IRS) or changes in IRS

- regulation.

Messrs. Terry and Boyce stated that the pending application would request that the NRC consent to the license transfers, and approve the conforming license amendments, no later than January 15,2000. The parties currently anticipate closing the transaction during the first ]

j quarter of the year 2000, assuming the receipt of all regulatory approvals. They noted that it was considered desirable to have the new organization in place by the time of the next NMP2 refueling outage, which is currently scheduled for spring 2000. The NRC staff replied that, 1 while it will endeavor to meet the proposed schedule, it could prove to be overly optimistic based upon previous experience with similar reviews. ]

I hY (Yvik Darl S. Hood, Sr. Project Manager, Section 1 Project Directorate l Division of Licensing Project Management Office of Nuclear Reactor Regulation Docket Nos. 50-220 and 50-410

Enclosures:

1. List of Attendees

2. Hab.uouts e

cc w/encls: See next page f

~

l l r

f; Nine Mile Point Nuclear Station Unit Nos.1 and 2 j

Regional Administrator, Region i Charles Donaldson, Esquire U.S. Nuclear Regulatory Commission Assistant Attorney General  !

475 Allendale Road New York Department of Law King of PrL ssia, PA 19406 120 Broadway  ;

New York, NY 10271 l

Resident inspector J U.S. Nuclear Regulatory Commission Mr. Paul D. Eddy P.O. Box 126 State of New York Department of Lycoming, NY 13093 Public Service Power Division, System Operations Mr. Jim Rettberg 3 Empire State Plaza New York State Electric & Gas Albany, NY 12223 Corporation Corporate Drive Mr. Timothy S. Carey Kirkwood industrial Park Chair and Executive Director P.O. Box 5224 State Consumer Protection Board Binghamton, NY 13902-5224 5 Empire State Plaza, Suite 2101 Albany, NY 12223 l

Supervisor l Town of Scriba Mark J. Wetterhahn, Esquire Route 8, Box 382 Winston & Strawn Oswego, NY 13126 1400 L Street, NW Washingw DC 20005-3502 l Mr. Richard Goldsmith Syracuse University Gary D. Wilson, Esquire College of Law Niagara Mohawk Power Corporation E.I. White Hall Campus 300 Erie Boulevard West Syracuse, NY 12223 Syracuse, NY 13202 Mr. John V. Vinquist, MATS Inc. Mr. F. William Valentino, President ,

P.O. Box 63 New York State Energy, Research, Lycoming, NY 13093 and Development Authority Corporate Plaza West 286 Washington Avenue Extension Albany, NY 12203-6399 l

l 1

l l

1 i

i J

.c Meeting Attendees Regarding Transfer of Nine Mile Point Licenses to AmerGen j i

September 1,1999  ;

Name Affiliation 1

Robert W. Boyce - AmerGen/PECO Carl Terry NMPC Edward J. Cullen, Jr. AmerGen/PECO l 1

Jeffrey Smith ' NYSEG J. William Jones PECO Energy James A. Hutton PECO Energy Kevin P. Gallen Morgon, Lewis & Bockius LLP 3

Dan Stenger Hopkins & Sutter l Gary Wilson NMPC Mark Wetterbahn Winston & Strawn i

Mary Murphy LeBoeuf, Lamb, Greene & )

MacRae, LLP  !

l Paul J. Zaffuts Morgon, Lewis & Bockius LLP l Elinor G. Adensam NRR/DPLM/PD1 l

l S. Singh Bajwa NRR/DPLM/PD1 Darl S. Hood NRR/DPLM/PD1 l

\

\

l Barry Zaleman NRR/ DRIP /RGEB l Robert Wood NRR/ DRIP /RGEB Michael D. Tschiltz . NRC/OEDO l Richard M. Pelton NRR/DIPM l o Alex F. McKeigney NRR/ DRIP /RGEB j Steven R. Hom NRC/OGC Susan L. Uttal NRC/OGC l

Enclosure 1 :

,+

l

n

n_.

0; continuation of list of #Midees ,

1 John Robert

• State of NY/DPS Robert Vasalli*. State of NY/DPS John Stewart *. State of NY/DPS I Henry Leak * ' State of NY/DPS l William A.' Cook

• NRC/ Region 1/DRP Doreen Unis Saia , Couch, White, Brenner, Howard

& Feigenbaum, LLP Barbara S. Brenner' Couch, White, Brenner, Howard

& Feigenbaum, LLP '

Jenny Weil McGrawl-Hill l Paul Nolan I Att'y for City of Oswego, NY '

- Bernard M. Bordenick Att'y for City of Oswego, NY I Paul D, Eddy

• State of NY/DPS  ;

Kevin Lang* - State of NY/DPS I Warren Myers* State of NY/DPS

• By telephonic connection l

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[ iMeeting Summary Distribution:

LICENSEE: Niagara Mohawk Power Corporation FACILITY: Nine Mile Point Nuclear Station, Units 1 and 2

SUMMARY

OF SEPTEMBER 1,1999, MEETING REGARDING PROPOSED SALE OF FACILITY (TAC NOS. MA6368 AND MA6369);

E-Mail (w/enci.1) Hard Coov (w/all encb.)

'J. Zwolinski/S. Balck Docket File '

. E. Adensam PUBLIC S. Bajwa PDI-1 R/F S. Little : D. Hood W. Beckner OGC M. Oprendek, Region i ACRS D. Screnci, Region 1 W. Cook, Region 1 cc: Licensee & Service List B. Zaleman ,

R. Wood M. Tschiltz -

R. Pelton S.Hom

. S. Uttal A. McKeigney i

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g September 24, 1999 plans for continuity of NMP operatic,as, the site organization would be transferred to AmerGen with no material change in NMP operations and maintenance. He noted that, under a similar arrangement, the NRC found AmerGen technically qualified to own and operate TMI-1.

Organizationally, the NMP Senior Vice-President will report to the AmerGen Chief Executive Officer / Chief Nuclear Officer. My Boyce also discussed AmerGen's financial qualifications, l

includieg arrangements for decommissioning trust funds. He noted that the sale is subject to certain approvals by the Federal Energy Regulatory Commission, the New York State Public Service Commission, the Federal Trade Commission, and the Department of Justice; and that a tax-efficient vansfer of decommissioning trust funds from NMPC and NYSEG to AmerGen depends upon ce. din rulings by the internal Revenue Service (IRS) or changes in IRS regulation.

Messrs. Terry and Boyce stated that the pending application would request that the NRC consent to the license transfers, and approve the conforming license amendments, no later than January 15,2000. The parties currently anticipate closing the transaction during the first quarter of the year 2000, assuming the receipt of all regulatory approvals. They noted that it j was considered desirable to have the new organization in place by the time of the next NMP2 refueling outage, which is currently scheduled for spring,2000. The NRC staff replied that, while it will endeavor to meet the proposed schedule, it could prove to be overly optimistic )

based upon previous experience with similar reviews.

Original signed by: I Darl S. Hood, Sr. Project Manager, Section 1 I Project Directorate l Division of Licensing Project Management {

Office of Nuclear Reactor Regulation Docket Nos. 50-220 and 50-410-

Enclosures:

1. List of Attendees

2. Handouts cc w/encls: See next page DISTRIBUTION: See next page DOCUMENT NAME: G:\PDI-1\Nmp1-2\MTS90199.wpd

. To receive a copy of this document, indicate in the box: *C" - Copy without attachment / enclosure "E" - Copy with

, attachment / enclosure "N" - No copy 0FFICE PDI-1/PM l PDI-1/LA ,, , p y l PDI-1/SC' j l l j NAME DHood:lec })[t SU ttle f tC SBajwa []N L l l DATE 09/yJ/99 109/ O /99 \j 09/ 2At /99 09/ /99 f

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OFFICIAL RECORD COPY

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Meeting Summary Distribution:

LICENSEE: Niagara Mohawk Power Corporation FACILITY: Nine Mile Point Nuclear Station, Units 1 and 2

SUMMARY

OF SEPTEMBER 1,1999, MEETING REGARDING PROPOSED SALE OF FACILITY (TAC NOS. MA6368 AND MA6369)

E-Mail (w/ encl.1) Hard Coov (w/all encts.)

J. Zwolinski/S. Balck Docket File E. Adensam PUBLIC S. Bajwa PDI-1 R/F S. Little D. Hood W. Beckner OGC M. Oprendek, Region i ACRS D. Screnci, Region i W. Cook, Region 1 cc: Licensee & Service List B. Zalcman R. \Nood M. Tschiltz R. Pelton S.Hom S. Uttal A. McKeigney i

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[ ' September'24,~1999 2-l plans for continuity of NMP operations, the site organization would be transferred to AmerGen with no material change in NMP operations and maintenance. He noted that, under a similar arrangement, the NRC found AmerGen technically qualified to own and operate TMI-1.

Organizationally, the NMP Senior Vice President will report to the AmerGen Chief Executive Officer / Chief Nuclear Officer. My Boyce also discussed AmerGen's financial qualifications, including arrangements for decommissioning trust funds.- He noted that the sale is subject to certain approvals by the Federal Energy Regulatory Commission, the New York State Public Service Commission, the Federal Trade Commission, and the Department of Justice; and that a tax-efficient transfer of decommissioning trust funds from NMPC and NYSEG to AmerGen depends upon certain rulings by the Internal Revenue Service (IRS) or changes in IRS regulation.=

l Messrs. Terry and Boyce stated that the pending application would request that the NRC co';3ent to the license transfers, and approve the conforming license amendments, no later than January 15,2000. The parties currently anticipate closing the transaction during the first quarter of the year 2000, assuming the receipt of all regulatory approvals. They noted that it was considered desirable to have the new organization in place by the time of the next NMP2 refueling outage, which is currently scheduled for spring,2000. The NRC staff replied that, while it will endeavor.to meet the proposed schedu!s, it could prove to be overly optimistic based upon previous experience with similar reviews.

Original signed by:

Darl S. Hood, Sr. Project Manager, Section 1 I Project Directorate I

{

Division of Licensing Project Management j Office of Nuclear Reactor Regulation Docket Nos. 50-220 and 50-410

Enclosures:

1. List of Attendees 2.- Handouts cc w/encts: See next page DISTRIBUTION: See next page DOCUMENT NAME: G:\PDI-1\Nmp1-2\MTS90199.wpd To rec:1ve a copy of this document. ;,idicate in the box: "C" = Copy without attachment / enclosure "E" - Copy with 4 attachment / enclosure- "N" - No copy I DrflCE PDI-1/PM l PDI-1/LA' . i s l PDI-1/SC j l l l NAME= DHood:lec 'b,)ft SL1ttle f ' <- SBajwa W L.

DATE 09/7J/99 09/' ; /99 09/ 2 4 /99 09/ /99 OFFICIAL RECORD COPY l

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