ML20236W869
| ML20236W869 | |
| Person / Time | |
|---|---|
| Site: | Beaver Valley |
| Issue date: | 09/23/1987 |
| From: | Varga S Office of Nuclear Reactor Regulation |
| To: | |
| Shared Package | |
| ML20236W871 | List: |
| References | |
| HLWR, NUDOCS 8712080281 | |
| Download: ML20236W869 (8) | |
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UNITED STATES i
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NUCLEAR REGULATORY COMMISSION
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DUQUESNE LIGHT COMPANY ~
OHIO EDISON COMPANY THE CLEVELAND ELECTRIC ILLUMINATING COMPANY 1
THE TOLEDO EDISON COMPANY DOCKET NO. 50-412
'I BEAVER VALLEY' POWER STATION, UNIT 2
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AMENDMENT T0 FACILITY OPERATING LICENSE Amendment No. 1 License No. NPF-73 1.
The' Nuclear Regulatory Commission (the Counission) has found that:
A.
The application for amendnent by Duquesne Light Company *, Ohio' Edison-
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Company The Cleveland Electric Illuminating Company and The Toledo Edison Company (the licensees) dated July 14, 16, 22, 31, September la'(3 letters),17 and 18,'1987, complies with the standards and requirements of the Atomic Energy Act of 1954, as
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amended (the Act) and the Coasnission's rules and regulations set forth in 10 CFR Chapter I; B.
The facility will operatt in confonnity with the application, the
,1 provisions.of the Act, and the rules and regulations of the Commission; C.
Thereisreasonableassurance(1)thattheactivitiesauthorized 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 Comunission's regulations; D.
The issuar;ce of this amendnent will not be inimical to'the common
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defense and security or to the health and safety of the public; and
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E.
The issuance of this amendment is in accordance with 10 CFR Part
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51.of the Connission's regulations and all applicable mquirements J
have been satisfied.
2.
Accordingly, the license is amended by the addition of paragraph 2.B.(7) as indicatedintheatpchmenttothislicenseamendment.
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Duquesne Light Company (DLCo) is authorized to act as agent for Chio Edison Company, The Cleveland Electric Illuminating Company, and The Toledo Edison Company and has exclusive responsibility and control over the physical construction, operation, and maintenance of the facility.
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This amendment is effective on issuance.
FOR THE NUCLEAR REGULATORY Co MISSION g'a,
Division of Reactor ects I/II
Attachment:
Pages 3 and 3a of License Date of Issuance: September 23, 1987 88
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(2);PursuanttotheActand-10CFRPart50,'OhioEdisonCompany, The Cleveland-Electric Illuminating Company, and The Toledo Edison. Company to possess the facility at the designated location in Beaver County, Pennsylvania, in accordance with.
the procedures and limitations' set forth in the license; (3) Pursuant to the Act'and 10 CFR Part 70,'Duquesne Light. Company to rece Ne,. possess, a'nd use at any time special nuclear material as reacM fuel, in accordance with the limitations' for storage and amounts required for reactor' operation. as described in the Final Safety Analysis Report, as supplemented and amended; (4). Pursuant: to the Act and 10 CFR Parts. 30, 40, and '70, Duquesne Light Company to receive, possess, and use at any. time any byproduct source, and special, nuclear material such as' sealed' neutron sources' for reactor startup, sealed sources for. reactor'
- instrumentation and radiation monitoring equipment calibration, and as-fission detectors in amounts as required; (5) Pursuant to the Act and 10 CFR Parts 30, 40, and 70, Duquesne Light Company to receive, possess, and use in amounts as required any byproduct, source, or special-nuclear material without mstriction to chemical or physical fom, for sample analysis or instrument calibration or other activity associated with radioactive apparatus or components;
.(6) Pursuant to' the Act and 10 CFR' Parts 30, 40, and 70, Duquesne Light. Company to possess, but not separate, such byproduct and special nuclear materials as may be produced by the operation of the facility authorized herein.
(7).(a) Duquesne Light Company. Ohio Edison Company, The Cleveland Electric Illuminating Company and The Toledo Edison Company are authorized to transfer any portion of their respective 13.74%, 41.88%, 24.471 and 19.915 ownership interests in.
BVPS Unit 2 and a proportionate share of their ownership interests in the BVPS common facil.ities to certain potential l
investors identified in their submittals of July.14, 16.-
22 and 31, and September 14, 17 and 18, 1987, and at the same time to lease back from such purchasers such interest transferred in the BVPS Unit 2' facility. The tem of the lease is for approximately 29-1/2 years subject-to a right of renewal. Such sale and leaseback transactions are subject to the representations and conditions-set forth in the aforementioned submittals. 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 license' of BYPS Unit 2.
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 BVPS Unit 2 remains in effect; these financ%1 Amendment No. 1
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transactions..shall heve no effect on -the~ 1icense for the BVPS Unit 2 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 tern er conditions of-any'). lease agreements executed as part of these transactions; (ii the BVPS Operating Agreement,-(iii) the
. insurance coverage for BVPS Unit 2, and (iv). existing pro'perty any action.by a -
lessor or~others that may'have an adverse effect on the safe-operation of the facility.
C.
This license shall be deemed to contain and is subject to the conditions specified in the Connission's regulations set forth in 10 CFR Chapter I:
and is subject to all applicable provisions of the-Act and.to the rules, regulations, and orders of the Commission now or hereafter in effect; and it,' subject to the additional conditions specified or incorporated below:
.(1) Maximum Power Level DLCo is authorized to operate the facility at reactor core power levels not in excess of 2652 megawatts thermal (100 percent power) in accordance with the conditions specified herein.
(2) Technical Specifications and Environmental Protection Plan The Technical Specifications. contained in Appendix A and the Environmental Protection. Plan contained in Appendix B, both of which are attached hereto, are hereby incorporated into this license. DLCo shall operate.the facility in accordance with the Technical' Specifications and the Environmental ~ Protection Plan.
l Amendment No. 1 I
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UNITED STATES g
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NUCLEAR REGULATORY COMMISSION "l
WASHINGTON, D. C. 20655
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SAFETY EVALUATION BY THE OFFICE OF NUCLEAR REACTOR REGULATION SUPPORTING AMENDMENT NO.1 TO FACILITY OPERATING LICENSE PIO. NPF-73 DU UESNE LIGHT COMPANY
'HIO EDISDN U N ARY THE CLEVELAND ELECTRIC ILLUMINATING COMPANY TOLEDO EDISON COMPANY BEAVER VALLEY POWER STATION, UNIT 2 DOCKET NO. 50-412
1.0 INTRODUCTION
By letters dated July 14, 16, 22 and 31, 1987, September 14,(3 letters),
17 and 18, 1987, the licensees (named above) requested approval to sell and lease back parts or all of their ownership interests in Beaver Valley Power Station, Unit 2 (BVPS-2) and associated comon facilities. The basic term of the leases is expected to be approximately 29 1/2 years and the licensees will have the option to renew each lease for at least two years.
2.0 DISCUSSION AND EVALUATION Duquesne Light Company (DLC), one of the owners, is the only authorized agent to have exclusive responsibility and control over the physical construction, operation and maintenance of the facility.
. The sale and lesseback transactions described in these applications are similar in all significant respects to the transactions previously approved by the Comission with respect to various ownership interests in the Palo Verde Nuclear Generating Station (PVNGS). The first of these involved the sale and leaseback transactions by the Public Service Company of New Mexico relative to PVNGS Unit I which were authorized by an amendment to the PVNGS Unit 1 license on Dececber 26, 1985 (see 51 FP.
i 1883). Since then, additional similar transactions were authorized for PVNGS Unit 1 by license amendments issued on June 2,1986, and December 1
-J 1986, and for FVNGS Unit 2 by license amendments issued on August 12, 1986 August 15, 1986, and December 11, 1986. These amendments all 4
contain licanse conditions identical to those which were included in the j
aforementioned December 26, 1985 amendment pursuant to a Commission order i
of December 12, 1985.
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1 Subsequent to the above amendments, the Commission issued a similar i
amendment to the' Cleveland Electric Illuminating Company, part-owner os i
the Perry Nuclear Power Plant, Unit No. 1 on March 16, 1987, i
The licensees proposed that the BVPS-2 license be amended in the same manner by adding the following new paragraph 2.B.(7):
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( (7)(a)-
Duquesne Light Company Ohio Edison' Company, The Cleveland.
Electric Illuminating Company and The Toledo Edison Company are authorized to transfer any portion'of their respective 13.741, 41.88%,- 24.475 and 19.91% 'ownershi ) interests in BVPS Unit 2 and.a proportionate share of twir ownership interests in the BVPS common facilities ~to certain potential equity investors identified in their submittals of July 14,16, 22,' 31, September.14. - 17: and 18,1987, and at the same time to lease back from such purchasers such interest transferred in the BVPS Unit 2 facility. The tem of the: lease is;for approximately 29-1/2 years subject to a right of renewal.
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Such sale and leaseback transactions are subject to the representations and conditions set forth in the aforementioned submittals.- 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 license of BVPS Unit 2.
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 succestor in interest to that lessor as long as the license for BVPS Unit 2 remains in effect; these financial transactions shall have no effect on the license for the BVPS Unit 2 facility throughout the ters of the license.
(b) Further, the Ifcensees are also required to notify the NRC in writing prior to any change in:
(1) the tem or conditions of.
any) lease agreements executed as part of these transactions; (ii the BVPS Operating Agreement, (iii) the existing property insurance coverage for BVPS, Unit 2, and (iv) any action by a 1essor or others that may have an adverse effect on the safe l
operation of the facility.
Consistentwiththeabovecondition2.B.(7),thelicensees'various
.submittals stated that:. "Neither the owner trustee nor any of the equity investors will have (1) any ability lto restrict or inhibit compliance with the security, safety, or other regulations of the Commission, (ii) any(capacity to control the use or disposal of BVPS Unit 2 nuclear fuel, or iii) any right to use or direct the use of BVPS Unit 2 or any other part of BVPS Unit 2.
The current regime of control, supervision, and responsibility will be unaltered by the proposed transactions. DLC is and will remain responsible to the Counission for the proper operation and maintenance of Unit 2."
Our review of the application materials reveals no information that reflects negatively on the licensees' financial qualifications under the license.
Indeed, the source of funds for unit o expenses will be unaffected by the transactions.perating and maintenance That source is the utility revenues derived from the regulated rates charged to utility customers. The utility licensees will. continue to be responsible for their pro-rata shares of all nuclear unit costs under previsions of the Beaver Valley Power Station Operatino Agreement. Any needed capital improvements or additions to the nuclear unit would be financed by the
f utility licensees as at present through a combination of internally generated funds (derived from customer revenues) and security issues.
The equity investor-lessors, through agreement with the utility licensees, may opt to provide capital for such improvements or additions. The proposed sale / leaseback is a capital refinancing mechanism that does not impair the licensees' financial capability to comply with NRC requirements.
The licensees' submittals of September 14 and 18,1987, identified who the potential investors might be but discussions with these investors are i
continuing. The licensees, however, stated that some investors may be i
affiliates and subsidiaries of electric utilities, thus raising the question of antitrust possibilities. The staff detemined 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 l
same manner as is now set forth in the operating agreement, "the transaction does not present any antitrust considerations not previously considered at the time of the license." (SECY-85-367 at 9). The potential sale to investors who are affiliates and subsidiaries of electric utilities described above would he fully consistent with the policy stated above in SECY-85-367. None of the potential investors identified in the licensees' letters are foreign corporations.
3.0 CONTACT WITH STATE OFFICIAL The Connonwealth of Pennsylvania has been advised of the proposed determination of no significant hazards considerations with reg)ard to the amendment (Phone call with Mr. R. Janati, August 24, 1987. No comments were received.
4.0 ENVIRONMENTAL CONSIDERATION
S This amendment only involves the administration of the cmdit and financial arrangements for BVPS, Unit 2.
The parties will enter into agmements which provide for the sale and lease back of ownership shares by the licensees under tems requiring continued full control and responsibility over these ownership shares by the licensees. The lessors and anyone else who may acquire an interest under these transactions are prohibited from exercising directly or indirectly, any control of the license. The amendment also includes a reporting requirement.that the NRC must be notified in writing prior to any change in the executed lease agreements, the BVPS, Unit 2 participation agreement, the existing insurance policies or any action by a lessor or others that may have an adverse effect on the safe operation of the facility. Accordingly this amendment meets the elig)ibility criteria for categorical exclusion set forthin10CFR51.22(c(10). Pursuantto10CFR51.22(b)no environmental impact statement or environmental assessment need be prepared in connection with the issuance of this amendment.
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 manner, and
l (2)suchactivitieswillbeconductedincompliancewiththeCommission's regulations and (3) the issuance of amendments will not be inimical to the common defense and security or to the health and safety of the public.
We, therefore, conclude that the requested authorization is acceptable.
Dated:
Principal Contributors:
. James C. Petersen, Senior Financial Policy Analyst Peter S. Tam, Project Manager George Johnson, Legal Counsel Benjamin Yogler, Legal Counsel s
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