ML20247L741

Summary of 980506 Meeting W/Util in Re Proposed Merger Between America Electric Power Co,Inc & Central & Southwest Corp (Csw).Meeting Attendees & Handout Provided by Csw Encl

ML20247L741
Person / Time
Site:	South Texas
Issue date:	05/20/1998
From:	Alexion T NRC (Affiliation Not Assigned)
To:	NRC (Affiliation Not Assigned)
References
NUDOCS 9805260060
Download: ML20247L741 (8)

Text

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ur $~h UNITED STATES j

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o $ WASHINGTON, D.C. 30006-4001

• • • • • May 20,1998 i

LICENSEE: CENTRAL POWER AND LIGHT COMPANY (CP&L)

FACILITY: SOUTH TEXAS PROJECT, UNITS 1 AND 2 (STP)

SUMMARY

OF MAY 6,1998, MEETING ON PROPOSED MERGER BETWEEN AMERICAN ELECTRIC POWER AND CENTRAL AND SOUTH WEST On May 6,1998, the NRC staff met with representatives from Central and Southwest Corporation (CSW), American Electric Power Company, Inc. (AEP), STP Nuclear Operating Company l (STPNOC) and Shaw, Pittman, Potts and Trowbridge. Meeting attendees are listed in  !

Attachment 1. A handout provided by CSW is included as Attachment 2. '

AEP is the parent company of Indiana Michigan Power Company (the D.C. Cook licensee). CSW is the parent company of CP&L. CP&L is one of the owners of STP. The proposed merger involves AEP acquiring CSW in a stock-for-stock transaction (1.0 share of CSW stock will be exchanged for 0.6 share of AEP stock upon merging, and that ratio reflects the approximate  ;

current relative value of the two stocks), with AEP ultimately being the surviving entity. CP&L stated that the merger will improve the financial strength of the surviving entity and yield a l financial benefit of about 2 billion dollars in non-production savings. CP&L also stated that the l merger will have no impact on the organizational structure of STPNOC, no impact on the technical qualifications of STPNOC, and will enhance the financial qualifications of CP&L' as ,

25.2% owner of STP.

CP&L plans to submit a 10 CFR 50.80 application, for approval of an indirect transfer of control of the STP license to the extent held by CP&L, to the NRC in early June 1998, and desires NRC approval by the end of 1998, with an allowance for a 1-year implementation period in the Order that consents to the transfer. CP&L indicated that there is currently no foreign control of the license and the merger will not result in foreign control of the license, that their review of NUREG-1574 indicates that this merger should not trigger an antitrust review by the NRC, and that in the application they will commit to inform the NRC if CP&L transfers in excess of 10% of its assets to an affiliate. CP&L plans to consummate the merger by March 31,4999. Regarding D.C. Cook, AEP indicated that since there is no change in control of the license (direct or indirect), no application under 10 CFR 50.80 is planned. Also, it was acknowledged that both the four owners of STP and Indiana Michigan Power Company will remain " electric utilities" under 10 CFR 50.2.

The NRC stated that CP&L's application should state whether CP&L is aware of any large amount of stock (greater than 5% of a class of voting securities) being held by a beneficial owner. In addition the NRC suggested that a separate information-type letter should be submitted on the D.C. Cook docket that references the 10 CFR 50.80 application on the STP fi I

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9-9805260060 980520 PDR ADOCK 05000498 P_ PDR u

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docket and lays out the lack of any regulatory approval needed for AEP and Indiana Michigan l Power Company with respect to D.C. Cook The NRC also indicated that, based on the l information provided at the meeting, CP&L's proposed review schedule appears reasonable.

ORIGINAL SIGNED BY:

Thomas W. Alexion, Project Manager Project Directorate IV-1 l- Division of Reactor Projects lil/lV Office of Nuclear Reactor Regulation Docket Nos. 50-498 and 50-499 i Attachments: As stated cc w/atts: See next page DISTRIBUTION:

HARD COPY E-MAIL Docket File S. Collins /F. Miraglia (SJC1/FJM) T. Alexion (TWA)

PUBLIC B. Boger (BAB2) J. Hannon (JNH)

PD4-1 r/f E. Adensam (EGA1) A. McKeigne) (AXM1)

OGC C. Hawes (CMH2) R. Wood (RSW1)

ACRS T. Martin (SLM3) , -

S. Hom (SRH)

M. Malloy (MXM) J. Stang (JFS2)

R. Savio (RPS1)

Document Name: STP5698.MTS ,7 OFC PM/PDd-ft LA/PD4-1 D/PD TAlelah CHNs NAME JHannon DATE (/M/98 $ C0/98 ' h 98 ,.

COPY YES/NO YES/NO kEh/NO ,

OFFICIAL RECORD COPY l

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docket 'and lays out the lack of any regulatory approval needed for AEP and Indiana Michigan Power Company with respect to D.C. Cook. The NRC also indicated that, based on the information provided at the meeting, CP&L's proposed review schedule appears reasonable.

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I Thomas W. Alexion, Project Manager j Project Directorate IV-1  !

Division of Reactor Projects lil/IV  !

Office of Nuclear Reactor Regulation j l

Docket Nos. 50-498 and 50-499 Attachments: As stated cc w/atts: See next page I I

STP Nuclear Operating Company South Texas, Units 1 & 2 cc:

. Mr. David P. Loveless Jack R. Newman, Esq.

Senior Resident inspector Morgan, Lewis & Bockius U.S. Nuclear Regulatory Commission 1800 M Street, N.W.

P. O. Box 910 Washington, DC 20036-5869 Bay City, TX 77414

' Mr. Lawrence E. Martin A. Ramirez/C. M. Canady Vice President, Nuc. Assurance & Licensing City of Austin STP Nuclear Operating Company l Electric Utility Department P. O. Box 289 -

721 Barton Springs Road Wadsworth, TX 77483 Austin, TX 78704 l Mr. M. T. Hardt ATTN: John Howard, Director Mr. W. C. Gunst Environmental and Natural City Public Service Board Resources Policy P. O. Box 1771 P. O. Box 12428 San Antonio, TX 78296 Austin,TX 78711 Mr. G. E. Vaughn/C. A. Johnson Jon C. Wood l

Central Pcwer and Light Company Matthews & Branscomb

, P. O. Box 289 One Alamo Center i Mail Code: N5012 106 S. St. Mary's Street, Suite 700 Wadsworth, TX 74483 San Antonio, TX 78205-3692 INPO Arthur C. Tate, Director Records Center Division of Compliance & Inspection l 700 Galleria Parkway Bureau of Radiation Control Atlanta, GA 30339-3064 Texas Department of Health 1100 West 49th Street i Regional Administrator, Region IV Austin, TX 78756 l U.S. Nuclear Regulatory Commission l

611 Ryan Plaza Drive, Suite 400 Jim Calloway Arlington,TX 76011 Public Utility Commission of Texas i Electric Industry Analysis l D. G. Tees /R. L. Balcom P. O. Box 13326 Houston Lighting & Power Co. Austin, TX 78711-3326 P. O. Box 1700 Houston,TX 77251

' Judge, Matagorda County .

Matagorda County Courthouse 1700 Seventh Street Bay City, TX 77414 Mr. William T. Cottle l- President and Chief Executive Officer l I- STP Nuclear Operating Company South Texas Project Electric Generating Station P. O. Box 289 Wadsworth, TX 77483

MEETING BETWEEN CENTRAL POWER AND LIGHT AND NRC TO DISCUSS PROPOSED MERGER BETWEEN AMERICAN ELECTRIC POWER AND CENTRAL AND SOUTH WEST MAY 6,1998 Name Organization G. Vaughn Central and South West, and CP&L J. O'Neill Shaw, Pittman, Potts &Trowbridge B. Signet American Electric Power J. Cross American Electric Power M. McBumett STPNOC A. McKeigney NRC R. Wood NRC S.Hom NRC T. Alexion NRC ATTACHMENT 1

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