ML20237C837
| ML20237C837 | |
| Person / Time | |
|---|---|
| Site: | Seabrook  |
| Issue date: | 04/14/1998 |
| From: | Drawbridge B NORTH ATLANTIC ENERGY SERVICE CORP. (NAESCO) |
| To: | NRC OFFICE OF INFORMATION RESOURCES MANAGEMENT (IRM) |
| References | |
| NYN-98036, NUDOCS 9808240197 | |
| Download: ML20237C837 (13) | |
Text
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M i 988
- s. s 1 North North Atlantic Enug Smice Cgoration
- J P.O. Box 300 Atlantic Seasroot, Nn 03874 h.
(603) 474-952t i
The Northeast Utilities System April 14,1998 Docket No. 50-443 NYN-98036 NRC Operating License No. NPF-86 U.S. Nuclear Regulatory Commission Attn: Document Control Desk Washington, DC 20555-0001 Seabrook Station, Unit No.1 Request for Commission Consent to the Indirect Transfer of Control of Montaup Electric Company's ("Montaup")
Interest in the Ooerating License 1.
INTRODUCTION North Atlantic Energy Service Corporation (" North Atlantic"), for itself and as agent for
' the Joint Owners' of Seabrook Station, Unit No.1, hereby requests Commission consent to the indirect transfer of control of Montaup's interest in Operating License No. NPF-86 2
(the " Operating License") pursuant to Section 184 of the Atomic Energy Act of 1954, as amended (the "Act"), and 10 CFR Q50.80. The information and other descriptive materials herein with respect to Montaup are provided by Montaup; the technical aspects of this filing are sponsored by North Atlantic.
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Background
Seabrook Station Unit No.1 ("Seabrook Station") is a nuclear powered clectric generating facility wh'ich is owned by eleven Joint Owners pursuant to an
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Agreement for Joint Ownership, Construction and Operation of New Hampshire Nuclear
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Units, dated May 1,1973, as amended (the " Joint Ownership Agreement"), and is l
' Nonh Atlantic, the licensed operator of Seabrook Unit No.1, is also authorized to act as agent for the eleven owners of the facility: North Atlantic Energy Corporation, Canal Electric Company, The Connecticut Light and Power Company, Great Bay Power Corporation, Hudson Light & Power Department, Massachusetts Municipal Wholesale Electric Company, Montaup Electric Company, New England Power Company, New Hampshire Electric Cooperative, Inc., Taunton Municipal Light Plant and The United Illuminating Company (collectively 4
referred to herein as the " Joint Owners" or with North Atlantic the " Licensees").
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' 42 U.S.C. (2234.
9808240197 990414 DR ADOCK O 4j3 l
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U.S. Nuclear Regul: tory Commission NYN-98036 / Page 2 l%
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operated pursuant to the Operating License issued by the Commission in the above Docket. In accordance with the Joint Ownership Agreement and the Managin as amended (the "MAOA")g Agent l
Operating Agreement, dated as of Jtme 29,1992,
, North j
Atlantic is the Managing Agent for the eleven Joint Owners and as such has responsibility for the management, operation and maintenance of Seabrook Station.
North Atlantic's position as Managing Agent and operator was approved by issuance of Amendment No.10, dated May 29,1992, to the Operating License. Granting the request l
contained in this submission will not in any way affect North Atlantic's position as Managing Agent and operator of Seabrook Station or its responsibilities under the MAOA or any technical aspects of the Operating License. Montaup was one of the initial d
owners of Seabrook Station and was found by the Commission to be qualified to be, and continues to be listed as, one of the Licensees identified in the Operating License.
l Montaup is an electric utility corporation organized and operating under the laws of the Commonwealth of Massachusetts and is the wholly-owned, indirect subsidiary of Eastern Utilities Associates ("EUA"), a registered holding company. In addition, EUA has three wholly-owned, electric distribution companies, Blackstone Valley Electric Company, L
Newport Electric Corporation and Eastern Edison Company (collectively the " Retail l
Subsidiaries" and with Montaup, the "EUA System"), with a service territory in south l
eastern Massachusetts and part of Rhode Island. Montaup,5 the subsidiary of Eastem l
Edison Company, has traditionally functioned as the generating company within the EUA l
System and has supplied, and currently supplies, the Retail Subsidiaries with nearly 100% of each Retail Subsidiary's electric requirements under contracts containing rates based upon cost-of-service approved by the Federal Energy Regulation Commission
. ("FERC"). The Retail Subsidiaries and Montaup hold valid franchises, permits and other rights which are necessary to allow these companies to conduct an electric utility business l
within the territories they serve.
This Application relates to a proposed corporate rearrangement within the EUA System which will transfer the direct ownership of Montaup to EUA from Eastem Edison Company. That transfer will constitute an indirect transfer of Montaup's interest in the Operating License which requires Commission consent under 10 CFR Q50.80. The
' A copy of the MAOA has been previously filed with the Commission in this docket as pan of the Application to Amend the Facility Operating License to Authorize North Atlantic Energy Service Corporation to Act as Managing Agent for Seabrook Station, dated November 13,1990.
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f See Construction Permit No. CPPR-135, dated July 7,1976, in the above docket, s The owned generating capacity of the EUA System comes from a combination of the following sources: (i) l wholly owned EUA System generating plants, primarily Montaup's 154 MW Somerset facility located in Somerset, Massachusetts;(ii) Montaup's net entitlement of 293 MW from the 586 MW Canal No. 2 unit, which is located in Sandwich, Massachusetts and is 50% owned by Montaup; and,(iii) entitlement from units in which Montaup has partial ownership interests (which partial interests do not exceed 4.5% of any nuclear unit), by, joint ownership through tenancy-in-common or by stock ownership, one of which is Montaup's undivided 2.89989%
Ownership Interest in Seabrook Station (equivalent to 33.7 megawatts of capacity).
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U.S. Nucl:ar Regulatory Commission NYN-98036 / Page 3 corpora'te rearrangement of the EUA System, including the indirect change of control of l
Montaup, is one element of a comprehensive plan for the restructuring of the utility assets and operations of the EUA System (the "EUA Restructuring") which EUA has developed as described in more detail below.
The EUA Restructuring contemplates (i) a rearrangement of corporate relationships within the EUA System and (ii) an offering for sale to non-affiliated third parties of all of the generating assets of the EUA System l
(which sale, ifit should ultimately include Montaup's interest in Seabrook Station, would be the subject of a future application to the Commission).
The EUA Restructuring is a direct response to the changes in the utility industry in Massachusetts and Rhode Island, the two jurisdictions in which the EUA System operates, which changes to one degree or another are also occurring nationwide. In December,1996, the Massachusetts Department of Public Utilities (" Department", now named the Department of telecommunications and Energy) issued an order in its generic j
restructuring docket which provides a regulatory framework for industry restructuring and is designed to minimize long-term costs to consumers and maintain the safety and reliability of electric service with a minimum impact on the environment (D.P.U.96-100). The Department stated in that order that it "has continually encouraged the filing of offers of settlement as a way to expedite the restructuring process, and we continue to encourage parties to negotiate such agreements." (Id. at 20.) Pursuant to the Department's directives and stated policies, Montaup and its Massachusetts affiliate, Eastem Edison, entered into a Stipulation and Agreement dated May 16,1997 (as I
amended on October 28, 1997) with the Attorney General of the Commonwealth of Massachusetts, the Massachusetts Division' of Energy Resources, and other interested f parties (the "MA Settlement Agreement"), a copy of which is attached hereto as
- Exhibit A.
On November 25,1997, the Governor of Massachusetts signed into law Chapter 164 of 1
the Acts of 1997 (" Restructuring Act"), which establishes the framework to restructure the electric utility industry in Massachusetts. The Restructuring Act requires electric companies to file a detailed plan for restructuring their operations to allow for the introduction of retail competition in generation supply. The Act requires each electric company to offer retail access.on March 1,1998. Under the Restmeturing Act, an electric company that has already filed a plan with the Department which substantially -
complies or is consistent with Chapter 164 as determined by the Department, shall not be l
required to file a new plan. On December 23,1997, the Department approved the MA Settlement Agreement and found it to substantially comply with the new law.
l.
In August,1996, the Rhode Island General Assembly enacted the Utility Restructuring l
Act of1996 ("URA") which called for retail open access to be phased in beginning i
July 1,1997. Subsequent to that legislation, Montaup and its Rhode Island retail affiliates, Blackstone Valley Electric and Newport Electric, entered into a Stipulation and Agreement on October 17,1997 with the Rhode Island Public Utilities Commission and
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U.S. Nuclear Regulatory Commission NYN-98036 / Page 4 l,
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'Rhode Island Division of Public Utilities and Carriers (the "RI Settlement Agreement"), a copy of which is attached hereto as Exhibit B. The RI Settlement Agreement defines l
more explicitly the terms and conditions under which EUA's Rhode Island retail customers will be allowed open access.
i Both Settlement Agreements require amended service agreements to be entered into between Montaup and the respective Retail Subsidiaries which will supersede the existing all-requirements contracts with those affiliates. These amended agreements and both Settlement Agreements, pursuant to which they were executed, were filed at FERC on October 29, 1997 and were approved by FERC at its open meeting on December 17,1997, to become effective on the Retail Access Date as declared in each state.' Under these amended agreements, Montaup will recover the net book value of and a return on its generation related investments, including nuclear, and will be guaranteed ongoing funding of the decommissioning trusts as well as post-shutdown and site restoration costs. In addition, if Montaup is unable to divest its nuclear assets, these new agreements will strengthen Montaup's ability to recover from the Retail Subsidiaries its share of going forward operating costs for each nuclear unit in which it holds an interest, including O&M and capital additions, through a provision to recover 80% of those going forward costs less a credit for 80% of the revenue generated by sales of such unit's output.
All of these cost components are also included in the non-bypassable charges to all retail customers of the Retail Subsidiaries. The changes in Montaup's contracts with the Retail 1
l Subsidiaries are discussed in more detail below in Section II.B.2, Financial Information.
These amended agreements between Montaup and each of the Retail Subsidiaries will i
continue to be subject to FERC regulation.
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Both the Restructuring Act and the URA provide that the affected companies are entitled p
to recover the costs stranded by restructuring. These costs include, among other things, the unrecovered costs of regulatory assets, obligations associated with the ownership.and operation of nuclear plants, including decommissioning costs and costs independent of l
operation, and unrecovered capital costs of generating assets. As applied to the EUA System, this means that Montaup, the wholesale electric company, is entitled to recover from each of the Retail Subsidiaries c contract termination charge under FERC jurisdictional ratemaking that reflects that distribution company's share of Montaup's stranded costs. Each Retail Subsidiary in turn will recover those costs through a non-bypassable transition charge in its rates to ultimate consumers.7 These gen.eric recovery concepts are implemented for the EUA System in the two Settlement Agreements and have been approved by FERC, Department and RIPUC.
' Rhode Island's Retail Access Date occurred on January 1,1998 and Massachusetts Retail Access Date occurred on March 1,1998.
' These rates of the Retail Subsidiaries are regulated by the Department in Massachusetts and by the Public Utilities Commission in Rhode Island.
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U.S.Nucl:ar Regulatory Commission NYN-98036 / Page 5 4
As noted above, the Settlement Agreements also involve a potential sale of Montaup's generating assets to non-affiliated third parties. If the sale ultimately includes Montaup's interest in Seabrook Station, a further application will be filed with the Commission.
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Regulatory Approvals. In addition to the consent of the Commission requested hereby, the proposed corporate restructuring will require the regulatory approvals listed below.
1.
Maccachusetts Department of Telecommunications and Fnerav.
Because
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Montaup is a public utility under Massachusetts law (see, M.G.L. c 164. {9A), it is required to obtain authorization from the Department with respect to the restructuring under various provisions of M.G.L. c.164.
2.
Securities and Fvchange Commission ("SEC"1 Because Montaup is an indirect subsidiary of EUA, a registered holding company under the Public Utilities Holding Company Act of 1935, as amended ("PUHCA"), EUA and Montaup must obtain SEC approval of the restructuring under various provisions of PUHCA and the rules promulgated thereunder.
II.
APPLICATION FOR CONSENT TO INDIRECT TRANSFER OF CONTROL.
Pursuant to 10 CFR Q50.80, North Atlantic, for itself and on behalf of the Joint Owners, hereby requests that the Commission consent to the indirect transfer of control 'of Montaup's interest in the Operating License, which transfer of control will result from the l
implementation of the proposed corporate restructuring described above.
' A.
Rencons for Transfer of Control. The EUA Restructuring has two elements.
First, to reinforce the unbundling of utility functions contemplated by the Restructuring Act, the URA and the Settlement Agreements, EUA will make Montaup a direct subsidiary rather than have it remain a subsidiary of one of l
EUA's distribution companies. This will clearly separate the generating assets d
from the distribution function. At the same time, the all-requirements contracts between Montaup and each of the Retail Subsidiaries will be modified. Those revised contracts, which have been approved by FERC, will assure Montaup of adequate revenues to recover its sunk costs and meet its financial obligations, including those with respect to Seabrook Station, assuming Montaup's interest in l
Seabrook Station is not sold as part of the second element of the EUA Restructuring. Second, pursuant to the Settlement Agreements, the Restructuring Act and the URA, Montaup is endeavoring to divest all of its generating assets and power contracts. Montaup is currently evaluating proposals from interested parties and anticipates entering into asset sales agreements with one or more purchasers, subject to regulatory approvals, by the end of 1998. As noted above, if those asset sales agreements involve Montaup's interest in Seabrook Station, another application will be filed with the Commission at that time.
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U.S. Nuclear Regulatory Commission NYN-98036 / Page 6
'The transfer of direct equity ownership of Montaup to EUA will involve a change of legal ownership of the capital stock of Montaup and, therefore, involve a technical change in the control of Montaup and its interest in the Operating License, which transfer of control is subject to prior consent of the Commission.
42 U.S.C. Q2234 and 10 CFR Q50.80(a). However, the proposed corporate restructuring has minimal effect on the underlying ownership of Montaup.
Instead of being an indirect subsidiary of EUA, wholly-owned by Eastern Edison Company which is a direct subsidiary of EUA, Montaup will itself become a direct subsidiary of EUA.
B.
Supportina Informati.on. Set forth below is the supporting information required by the Commission's implementing regulation,10 CFR Q50.80, for an application for consent to such an indirect transfer, namely infonnation with respect to the proposed transferee of the type described in 10 CFR QQ50.33 and 50.34 and, because the Operating License is a class 103 license, Q50.33a.
1.
10 CFR $50.33 GeneralInformation:
(a)
Name of Licensee: Montaup Electric Company will continue to be the Licensee under the Operating License.
l (b)
Address of Licennee:
The current business address is l
1606 Riverside Avenue, P.O. Box 248, Somerset, MA 02726, until the Commission'is otherwise notified in writing.
i (c)
Description of Business: Montaup is a public utility under Massachusetts law, doing business in Massachusetts, engaged primarily.in sales of electric power at wholesale regulated by FERC.
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(d)
Corporate Charter.
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l (i)
Montaup is a corporation organized under the laws of The Commonwealth of Massachusetts with its principal place of business in Massachusetts. Its Bylaws and Articles of Organization are included as Fvhibits C and D, hereto, respectively. They will not be changed in any way as a result of the restructuring.
For the Commission's information, the Declaration of Trust of EUA is included as 1
Exhibit E hereto.
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U.S. Nuclear Regulitory Commission NYN-98036 / Page 7 (ii)
The names and addresses of the directors and principal officers of Montaup, all of whom are United States citizens, are as follows:
DIRECTORS Name Business Address John D. Camey (2)
Kevin A.Kirby (2)
Donald G. Pardus (1)
Robert G. Powderly (2)
John R. Stevens (1)
OFFICERS Titic' Name Address Chairman Donald G. Pardus (1)
President John R. Stevens (1)
Executive Vice President John D. Carney (2)
Executive Vice President Robert G. Powderly.
(2)
Vice President Kevin A. Kirby (2)
Treasurer and Clerk Clifford J.'Hebert, Jr.
(1) i Assistant Treasurer and Assistant Clerk Donald T. Sena (1)
(1)
Eastern Utilities Associates /EUA Service Corporation, P.O. Box 2333, Boston,MA 02107 (2)
EUA System Operating Center, P.O. Box 543, West Bridgewater, MA 02379
- Treasurer and Clerk elected at the Annual Meeting of Stockholders; all other officers elected at the first Board meeting following the Annual Meeting of Stockholders.
(iii)
Foreign Control: Montaup is not now owned, controlled or dominated by an alien, foreign corporation or foreign government. After the restructuring, Montaup will become a direct subsidiary of EUA, which is not owned, controlled or dominated by an alien, foreign corporation or foreign government.
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U.S. Nuclear Regulatory Commission NYN-98036 / Page 8 (c) -
Agency Status: Montaup is not acting as agent or representative of I
any other person.
l (f)
Financial Information: The information under clause (4) of this section appears in paragraph II.B.2 below.
(g)
Emergency Resnone Plan: This section is not applicable to this application.
(h)
Construction or Alteration at Facilitv:
This section is not applicable to this application.
l (i)
Regulatnry Agencies and News Publications:
The following regulatory agencies, in addition to the Commission, I
have financing (F), licensing (L), siting (S), or ratemaking (R) jurisdiction over Montaup Electric Company:
l F, S: Massachusetts Department of Telecommunications and Energy i
100 Cambridge Street Boston,MA 02202
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F:
Securities and Exchange Commission l
450 Fifth Street, NW Washington, D.C. 20549 l
R:
Federal Energy Regulatory Commission 888 First Street,NE t
Washington, D.C. 20426 (j)
Restricted Data:
This application does not contain any Restricted Data or other defense information, and it is not expected that any such information will become involved in the licensed activities.
However;-in the event such information does become involved, i
North Atlantic, as the representative of Montaup, agrees that it will l
appropriately safeguard such information and will not permit'any individual to have access to Restricted Data until the Office of Personnel Management shall have made an investigation and reported to the Commission on the character, associations and loyalty of such individual, and the Commission shall have determined that permitting such person to have access to Restricted Data will not endanger the common defense and security of the United States.
U.S.Nuclrar Regulatory Commission NYN-98036 / Page 9 (k)
Decommissioning: The information under this clause appears in Section 2(b) below.
2.
10 CFR f50.33 FinancialInformation:
(a)
Financial Qualifications for Continued Conduct of Activities:
I Clause (f) of 10 CFR {50.33 exempts an electric utility from demonstrating its financial qualifications. Montaup currently is, and after implementation of the EUA Restructuring will continue to be, an " electric utility" as defined in 10 CFR {50.2. Montaup's current business involves the generation and sale at wholesale of electric energy under fully reconciling rates subject to a performance standard, approved by FERC. After implementation of the EUA Restructuring, Montaup's revised contracts with the l
Retail Subsidiaries will continue to be regulated by FERC because those contracts continue as reconciling rates relating to the recovery of costs of power obligations incurred on behalf of the Retail Subsidiaries. To the extent any nuclear generation assets are not sold, the rates are designed to recover the going forward cost of power from those assets. Therefore, Montaup submits that it is exempted from the requirements of Clause (f) of 10 CFR 50.33.
Without waiving that exemption and to assist the Commission's evaluation of this Application, Montaup voluntarily submits the following information relating to its qualifications to continue l
funding its operational activities authorized by the Operating i
License.
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l As described under Section I of this Application, the EUA Restructuring has already begun with the introduction of retail access in Rhode Island. The EUA restructuring plan includes a recovery mechanism for nuclear costs which Mor.taup believes is superior -to the assurances given by its current recovery mechanism. The plan calls for a non-bypassable contract termination charge under fully reconciling rates subject to a performance standard, payable by the Retail Subsidiaries to Montaup, which includes: (1) accelerated recovery of and a retum on the existing net book value of Montaup's interest in Seabrook Station, (2) a provision for recovery of the values on Montaup's books of the fuel core, materials and supplies at Seabrook Station at the time of shutdown or sale of the unit, (3) flowthrough of any transmission costs related to capacity and energy transactions from Seabrook Station, (4) performance based recovery amounting to L.---_------_
U.S. Nuclear Regulatory Commission l.
NYN-98036 / Page 10
!W 80% of the operating margin from these transactions, (5) recovery of Federal Decontamination and Decommissioning fee for DOE enrichment facilities, (6) full recovery of Montaup's share of the l
decommissioning fund for Seabrook Station, and (7) recovery of other post shutdown costs for Seabrook Station as incurred.
Montaup specifically calls the Commission's attention to the following advantageous attributes of the Settlement Agreements:
(1)
Both Settlements call for the full recovery of and an allowance for recovery on the nuclear plant book values as of December 31,1995. These balances are amortized over a period ending on December 31,2009. (See Exhibit A, Appendix 1, Sections 1.1.1 and 1.1.2.) For Seabrook, this means a twenty year acceleration in amortization when compared to the current period which was based on a 40 year license life expectancy in Montaup's last cost-of-service study.
(2)
Exhibit A, Appendix 1, Section 1.2.3(a), and Exhibit B, Appendix 1, Section 1.2.2(a), contain the language allowing recovery of the book value of nuclear fuel, materials and supplies at the time of sale or shutdown.
Since thece costs are not known prior to sale or shutdown, they will be included in the Variable Component as incurred.
(3)
Transmission wheeling, rental and support charges for Montaup's entitlement in Seabrook Station are fully recoverable in the Variable Component in accordance with Exhibit A, Appendix 1, Section 1.2.3(d), and Exhibit B, Appendix 1, Section 1.2.2(d).
(4)
Both Settlement Agreements provide for Montaup's continued funding of the operational activities for its niiclear units based upon a performance based rate (the
" nuclear PBR mechanism"). The nuclear PBR mechanism includes in the rates recoverable by Montaup 80 percent of the revenues from sales of energy or capacity from Seabrook Station that are not otherwise reflected in contract termination charges less 80 percent of the reasonable going forward costs, including post-1995 capital additions with a return on a fully reconciling rate basis, associated with Seabrook Station that are not recovered in contract termination charges. (See Exhibit A, Section 1.2.3(h) and Exhibit B, Section 1.2.2(h).) In essence, this language
U.S. Nuclear Regulatory Commission NYN-98036 / Page 11 guarantees that Montaup will recover 80% of the Seabrook net operating loss or refund 80% of the profit for the life of operating license. 'Ihe remaining 20% of the net operating loss or profit is bome by Montaup's equity owner."
(5)
In addition to the ongoing decommissioning trust funding while Seabrook Station is operating, once the Operating License expires and Seabrook Station enters a shutdown mode, all of the future funding is covered by the contract termination charge as described below under
" Decommissioning Funding".
(b)
Decommincioning Funding: Clause (k) of 10 CFR 650.33 requires an application for an operating license for a utilization facility to contain infonnation indicating how reasonable assurance will be provided that funds will be available to decommission the facility.
The Licensees previously filed on December 27,1989, as updated on July 23, 1990, a Report demonstrating how such reasonable assurance would be provided by the Licensees, including Montaup, collectively. After the EUA Restructuring is implemented, Montaup will collect decommissioning and other post shutdown costs through a formula rate approved by the FERC and will continue to make its ongoing payments to the Decommissioning Trust Fund.
The Variable Component of the non-bypassable contract termination charge under _ cost-of-service ratemaking provides for full recovery of nuclear decommissioning and other -
post-shut down costs. These recoveries are adjusted annually through a Reconciliation Account which is designed to recapture or l
refund variances in actual versus estimated costs, a portion of f
which are nuclear costs. Exhibit A, Section 1.2.3(a) and Exhibit B, Section 1.2.2(a) describe the categories of decommissioning and shutdowitcosts included in the formula. The formula allows for i
complete funding of decommissioning activities associated with plant, materials and supplies in service prior to the Retail Access Date.
' The risk of Montaup's earnings in this scenario is similar to the risk posed by tradition cost-of-service regulation when one accounts for regulatory lag, i.e. the delay between cost increase identification, rate case preparation and final nonappealable approval of the new rate. To date, embedded capital and historical operating costs have been built into cunent rates and Montaup absorbs the risk of additional capital and any fluctuation in operating costs between rate cases.
r U.S. Nuclear Regulatory Commission NYN-98036 / Page 12.
'3.
10 CFR $50.34 Information:
Clause (b)(7) of 10 CFR {50.34 requires information describing the technical qualifications of the applicant to engage in the proposed activity.
l The MAOA, which was entered into by the Joint Owners pursuant to the l
Joint Ownership Agreement, to which Montaup is a party, provides that North Atlantic is responsible for the management, operation and maintenance of Seabrook. Amendment No.10 to the Operating License contains the Commission's findings that North Atlantic is the technically qualified Licensee authorized to operate Seabrook Station. The proposed restructuring does not involve any modification of North Atlantic's l
responsibilities.
Since Montaup will have no responsibility for the management, operation or maintenance of Scabrook, clause (b)(7) is not applicable.
4.
10 CFR 550.33a Information:
Since this Application seeks consent to an indirect transfer under 10 CFR 50.80, no Section 105 antitrust review is required.
I SECY-97-227, " Status of Staff Action on Standard Resiew Plans for l
Antitrust Reviews and Financial Qualifications and Decommissioning -
Funding - Insurance Review", at 2 and Final SRP for Additional Reviews at 53.3.
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l III.
! CONCLUSION Based upon the foregoing, North Atlantic, for itself and the Joint Owners, hereby respectfully requests that the Commission consent to the indirect traasfer of control l
described in Section II hereof.
As described herein, the indirect transfer of control is one element of a restructuring being undertaken by Montaup in response to the recently enacted legislation in Massachusetts l-and Rhode Island affecting the electric utility industry.
As stated above, that restructuring will require several different regulatory approvals, the tuning of which is l
difficult to predict. Montaup is currently working on a schedule which projects a transfer of Montaup from Eastern Edison to EUA no later than June 1999. In order to facilitate completion of this restructuring, Montaup respectfully requests that the Commission act on this Request as promptly as possible and that the Commission provide that its Consent remain effective until at least June 30,1999.
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3 U.S. Nuclear Regulatory Commission NYN-98036 / Page 13
't If you~have q'uestions regarding this information, please contact Mr. Anthony M. Callendrello, Licensing Manager, at (603) 773-7751.
Respectfully submitted, NORTH ATLANTIC ENERGY SERVICE CORPORATI
,n of the Licensees A '1 /JM ruce @awbridge Director of Services STATE OF NEW HAMPSHIRE Rockingham, ss.
DATE: April 14,1998 Then personally appeared before me, the above-named Bruce L. Drawbridge, being duly sworn, did state that he is Director of Services of the Nonh Atlantic Energy Service Corporation that he is duly authorized to execute and file the foregoing information in the name and on the behalf of North Atlantic Energy Service Corporation and that the statements therein are true to the best of his knowledge and belief.
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Susan J. M'esfer, Notary Public My Commission Expires: December 22,1998 cc:
H. J. Miller, NRC Region I Administrator C. W. Smith, NRC Project Manager, Project Directorate 1-3 R. K. Lorson, NRC Senior Resident Inspector
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