ML20249B533
| ML20249B533 | |
| Person / Time | |
|---|---|
| Site: | South Texas  |
| Issue date: | 06/19/1998 |
| From: | Oneill J CAROLINA POWER & LIGHT CO., SHAW, PITTMAN, POTTS & TROWBRIDGE |
| To: | NRC OFFICE OF INFORMATION RESOURCES MANAGEMENT (IRM) |
| Shared Package | |
| ML20249B534 | List: |
| References | |
| NUDOCS 9806230274 | |
| Download: ML20249B533 (2) | |
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SHAw, PITTMAN, PoTTs & TROWBRIDGE A PAMYNEMSHtP INCLUDING PROF ESSIONAL COMPORAfeONS 2300 N STREET. N.W.
t WASHINGTON, D.C.20037-1128 l
(202) 663-8000 (202 6 3-8007 5
(2o2 ee see June 19,1998 U.S. Nuclear Regulatory Commission Document Control Desk One White Flint North 11555 Rockville Pike Rockville,MD 20852 Re:
Application for Transfers of Control Regarding Operating Licenses Nos. NPF-76 and NPF-80 for the South Texas Project, Units I and 2 (Docket Nos. 50-498 and 50-499)
Ladies and Gentlemen:
Pursuant to Section 184 of the Atomic Energy Act, as amended,10 C.F.R. G 50.80, and NRC Administrative Letter 96-02, Central Power and Light Company (" CPL") hereby submits an application for transfer of control ofits interest in Operating Licenses Nos.
NPF-76 and NPF-80 for the South Texas Project, Units 1 and 2 ("STP"). This application requests the consent of the Nuclear Regulatory Commission ("NRC") to the indirect transfers of control of CPL's possessory interest in the STP licenses that will occur under a proposed merger of Central and South West Corporation (the parent holding company of CPL) and American Electric Power Company, Inc. The STP Nuclear Operating Company, the licensed operator of STP, is not impacted by the merger.
The merger will achieve significant cost savings and efficiencies and create a stronger, more competitive enterprise. The potential net non-fuel cost savings related to the merger are approximately $2 billion over the first ten years following the merger. The merger will thereby enhance CPL's financial resources to possess its ownership interest in STP.
In order to maximize the significant cost savings and efficiencies upon consummation of the merger, the applicant requests expeditious review of this application by the NRC and the issuance of a 10 C.F.R. { 50.80 consent. The applicant believes that the NRC should be able to consent to the indirect transfers of control occasioned by the proposed merger, since the merger will have no adverse afTect on either the technical management or the operation of STP, will not require a specific demonstration of financial qualifications since the applicant's 9806230274 900619 l\\ \\
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SHAW PITTMAN POTTSeTIOWBRIDGE U.S. Nuclear Regulatory Commission l
June 19,1998 l
Page 2 status as a utility under 10 C.F.R. f 50.2 will remain unchanged, and will not require any NRC antitrust review because this application does not require issuance of a license (gg NUREG-1574 at 3-1).
l l
The proposed merger requires approval of other regulatory agencies in addition to consent from the NRC. The merger is expected to be completed by March 31,1999.
l Accordingly, it is requested that the NRC consent to the indirect transfer of control of the STP licenses by December 31,1998, to be effective through December 31,1999 for final
.' completion of the merger.
If you have any questions or require additional information, please contact me at the telephone number below, o
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Very truly yours, l
3 bNgg John H. O'Neill, Jr.
SHAW PITTMAN POTTS & TROWBRIDGE L
2300 N Street, N.W.
l Washington, D.C. 20037 l
(202) 663-8148 Enclosures l'
. cc:
Regional Administrator, NRC Region IV Resident Inspector, the South Texas Project NRR Project Manager, the South Texas Project W. T. Cottle, President & CEO, STPNOC