ML23013A244
| ML23013A244 | |
| Person / Time | |
|---|---|
| Site: | Palo Verde  |
| Issue date: | 01/13/2023 |
| From: | Gil K Arizona Public Service Co |
| To: | Office of Nuclear Material Safety and Safeguards, Office of Nuclear Reactor Regulation, Document Control Desk |
| References | |
| 102-08559-KJG/MSC | |
| Download: ML23013A244 (1) | |
Text
A member of the STARS Alliance LLC Callaway
- Diablo Canyon
- Palo Verde
- Wolf Creek 10 CFR 50.80 10 CFR 50.81 10 CFR 72.50 Palo Verde Nuclear Generating Station 5871 S. Wintersburg Road Tonopah, AZ 85354 Mail Station 7636 Tel 623.393.2488 102-08559-KJG/MSC January 13, 2023 U.S. Nuclear Regulatory Commission Attn: Document Control Desk One White Flint North 11555 Rockville Pike Rockville, MD 20852-2738 Reference 1:
U.S. Nuclear Regulatory Commission Corrected Order Approving Transfers of Control of Licenses, dated November 17, 2021 (Superseding Order of October 21, 2021) [Agencywide Documents Access and Management System (ADAMS) Accession No. ML21307A132]
Reference 2: Arizona Public Service Company Letter Number 102-08374, dated December 30, 2021, Notification of Closings of the Initial Transactions under Beneficial Interest Sales Agreements (ADAMS Accession No. ML22011A200)
SUBJECT:
Palo Verde Nuclear Generating Station, Units 1 and 2 Docket Nos. STN 50-528, 50-529 and Independent Spent Fuel Storage Installation Docket No. 72-44 Renewed Operating License Nos. NPF-41, NPF-51 Notification of Expiration of Four Unit 1 Leases and Closing of Transaction Transferring Leased Unit 1 Interests to Salt River Project Agricultural Improvement and Power District Arizona Public Service Company (APS), on behalf of the Salt River Project Agricultural Improvement and Power District (SRP) and Public Service Company of New Mexico (PNM),
submits this letter to inform the U.S. Nuclear Regulatory Commission (NRC) that four of the five remaining leases referenced in Section II of Reference 1, all for interests in Palo Verde Nuclear Generating Station (PVNGS) Unit 1, have expired by their own terms, all steps necessary for SRP to assume ownership of the formerly leased interests have occurred, and accordingly, SRP now holds 25.423333 percent of the possession only interests in PVNGS Unit 1 as of January 13, 2023. The information provided herein is provided by SRP. This notification is provided within two business days of the expiration of the leases in the Unit 1 interests transferred to SRP as required by Section III of Reference 1.
102-08559-KJG/MSC ATTN: Document Control Desk U.S. Nuclear Regulatory Commission Notification of Expiration of Four Unit 1 Leases and Closing of Transaction Transferring Leased Unit 1 Interests to SRP Page 2 As explained in Section II of Reference 1, prior to the expiration of the leases and transfer to SRP, PNM held a 10.2 percent possession only interest in PVNGS, Units 1, 2, and 3.
Certain of PNMs interests were leased from financial institutions through sale-leaseback transactions executed in 1985 and 1986 with financial institutions. Only five leases remained, four for interests in PVNGS Unit 1 and one for interests in PVNGS Unit 2. Four leases, representing 7.9333330 percent of the undivided interest in PVNGS Unit 1, were to expire by their own terms in 2023, with the fifth, representing 0.7933333 percent of the undivided interest in PVNGS Unit 2, to expire by its own terms in 2024. SRP agreed to purchase the interests in the five leases from the financial institutions, with PNM remaining as the lessee until the expiration of the applicable leases. APS, on behalf of SRP, provided notice of the closing of the initial transactions under the beneficial interest sales agreements between SRP, PNM, and the financial institutions in Reference 2.
Through agreement between SRP and PNM, the Unit 1 leases have now expired and PNMs interests were assumed by SRP on January 13, 2023. As a result, consistent with the NRCs consent and with the description of the transactions in Reference 1, SRP acquired the 7.9333330 percent share of PNMs undivided possession only interests in PVNGS Unit 1 on that day and now holds a cumulative 25.423333 percent of the undivided possession only interests in PVNGS Unit 1. PNM will continue to retain its rights and responsibilities under the Unit 2 lease for PNMs 0.7933333 percent undivided possession only interest in Unit 2 until that last lease expires in 2024.
If the NRC has any questions about this letter or wishes to obtain any additional information, please contact Kenneth Lee, Senior Director, Legal Services, SRP at 602-236-4525.
This correspondence contains no new regulatory commitments of APS, SRP or PNM.
Sincerely, Katherine J. Gil Director, Nuclear Regulatory Affairs KJG/MSC/cr cc:
S. A. Morris NRC Region IV Regional Administrator D. J. Galvin NRC NRR Project Manager for PVNGS L. N. Merker NRC Senior Resident Inspector for PVNGS B. D. Goretzki Arizona Department of Health Services - Bureau of Radiation Control K. Lee Salt River Project Agricultural Improvement and Power District L. Sanchez Public Service Company of New Mexico Digitally signed by Gil, Katherine J(Z05492)
Date: 2023.01.13 11:55:58 -07'00'