ML25328A155
| ML25328A155 | |
| Person / Time | |
|---|---|
| Site: | South Texas, 07201041  |
| Issue date: | 11/26/2025 |
| From: | Byrd T Plant Licensing Branch IV |
| To: | Kharrl C South Texas |
| Byrd, Thomas | |
| Shared Package | |
| ML25328A156 | List: |
| References | |
| EPID L-2025-LLM-0005 | |
| Download: ML25328A155 (0) | |
Text
November 26, 2025 Mr. Charles Kharrl President, Chief Executive Officer, and Chief Nuclear Officer STP Nuclear Operating Company P.O. Box 289 Wadsworth, TX 77483
SUBJECT:
SOUTH TEXAS PROJECT, UNITS 1 AND 2 AND THE ASSOCIATED INDEPENDENT SPENT FUEL STORAGE INSTALLATION - ORDER EXTENSION FOR DIRECT TRANSFER OF LICENSES (EPID L-2025-LLM-0005)
Dear Mr. Kharrl:
By letter dated October 10, 2025 (Agencywide Documents Access and Management System (ADAMS) Accession No. ML25283A067), STP Nuclear Operating Company acting on behalf of the City of San Antonio, Texas, acting by and through the City Public Service Board of San Antonio (CPS Energy), and Constellation South Texas, LLC (Constellation South Texas),
requested that the U.S. Nuclear Regulatory Commission (NRC) extend by 6 months its prior approval of the direct transfer of a 2 percent ownership interest of Renewed Facility Operating License Nos. NPF-76 and NFP-80 for South Texas Project, Units 1 and 2 and the general license for the STP Independent Spent Fuel Storage Installation (ISFSI) between two of its existing owner-from Constellation South Texas, LLC to CPS Energy.
On December 11, 2024, the NRC issued an order approving the direct transfer (ML24319A043).
The direct transfer order states in part:
Should the proposed transaction not be completed within 1 year of the date of this order, this order shall become null and void, provided, however, that upon written application to the Director of the Office of Nuclear Reactor Regulation and for good cause shown, such date may be extended by order.
The NRC staff completed its review of the Applicants proposed extension of the direct license transfer application. Enclosure 1 is the Order, which provides an extension to the consent for direct license transfer. The requested extension is applicable until June 11, 2026, due to STPNOC working to obtain a private letter ruling (PLR) or other binding guidance from the Internal Revenue Service (IRS) addressing the tax treatment of the nuclear decommissioning trust fundswhich are qualified funds under Section 468A of the Internal Revenue Code following the transfer of funds from Constellation South Texas to CPS Energy described in the Application. Applicants have diligently worked with IRS to obtain the PLR or other guidance throughout the past year. While the parties hope to obtain a satisfactory result by the end of this calendar year, the schedule for issuance of the PLR or other guidance is outside of the licensees control and may be impacted by IRS staffing, priorities, and the federal government shutdown.
A copy of the Order will be forwarded to the Office of the Federal Register for publication.
If you have any questions, contact me at 301-415-3719 or via email at Thomas.Byrd@nrc.gov.
Sincerely,
/RA/
Thomas J. Byrd, Project Manager Plant Licensing Branch IV Division of Operating Reactor Licensing Office of Nuclear Reactor Regulation Docket Nos. 50-498, 50-499, and 72-1041
Enclosure:
Order cc: Listserv
ENCLOSURE ORDER EXTENDING THE APPROVAL OF DIRECT TRANSFER OF LICENSES SOUTH TEXAS PROJECT, UNITS 1 AND 2 RENEWED FACILITY OPERATING LICENSE NOS. NPF-76 AND NPF-80 AND SOUTH TEXAS PROJECT INDEPENDENT SPENT FUEL STORAGE INSTALLATION GENERAL LICENSE ADAMS ACCESSION NO. ML25328A152
UNITED STATES OF AMERICA NUCLEAR REGULATORY COMMISSION In the Matter of
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STP Nuclear Operating Company
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South Texas Project, Units 1 and 2 and
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Docket Nos. 50-498. 50-499, and 72-1041 the Associated Independent Spent Fuel
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Storage Installation
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Renewed License Nos. NPF-76 and
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NPF-80 EXTENSION OF ORDER APPROVING DIRECT TRANSFER OF LICENSE I.
STP Nuclear Operating Company (STPNOC) is the licensed operator, and the City of San Antonio, Texas, acting by and through the City Public Service Board of San Antonio (CPS Energy), Constellation South Texas, LLC (Constellation South Texas), and the City of Austin, Texas, are the licensed owners for Renewed Facility Operating License Nos. NPF-76 and NPF-80 and the general license for the independent spent fuel storage installation (ISFSI)
(collectively, the licenses), which authorize the possession, use, and operation of South Texas Project, (STP), Units 1 and 2 and the STP ISFSI, respectively (the facilities). The facilities are located in Matagorda County, Texas. Specifically, this order addresses the request for extension of a previous order (Agencywide Documents Access and Management System (ADAMS)
Accession No. ML24319A043).
II.
Pursuant to Title 10 of the Code of Federal Regulations (10 CFR) Section 50.80, Transfer of licenses, and 10 CFR 72.50, Transfer of license, and by letter dated July 31, 2024 (ML24213A084), STPNOC, acting on behalf of Constellation South Texas, and CPS Energy (collectively, the Applicants), requested that the U.S. Nuclear Regulatory Commission
(NRC, the Commission) consent to the transfer of a 2 percent ownership interest of STP, Units 1 and 2 and its generally licensed ISFSI from Constellation South Texas to CPS Energy.
Currently, Constellation South Texas holds a 44 percent ownership interest in the facilities, while CPS Energy holds a 40 percent ownership interest in the facilities. Upon completion of the proposed direct transfer, Constellation South Texas and CPS Energy would each hold a 42 percent ownership in the facilities. The proposed direct transfer does not involve the City of Austins 16 percent ownership interest in the facilities.
On October 4, 2024, the NRC published a notice of consideration of approval of the application in the Federal Register (89 FR 80965). This notice provided an opportunity to comment, request a hearing, and petition for leave to intervene on the application. The NRC did not receive any written comments or hearing requests in response to the notice.
Pursuant to 10 CFR 50.80, no license for a utilization facility, or any right thereunder, shall be transferred, either voluntarily or involuntarily, directly or indirectly, through transfer of control of the license to any person, unless the Commission gives its consent in writing.
Pursuant to 10 CFR 72.50, no license or any part included in a license issued under 10 CFR Part 72 for an ISFSI shall be transferred, assigned, or in any manner disposed of, either voluntarily or involuntarily, directly or indirectly, through transfer of control of the license to any person, unless the Commission gives its consent in writing. Upon review of the information in the application, and other information before the Commission, and relying upon the representations contained in the application, the NRC staff has determined that the Applicants are qualified to hold the licenses, to the extent described in the application, and that the transfer of the licenses is otherwise consistent with applicable provisions of law, regulations, and orders issued by the Commission pursuant thereto, subject to the condition set forth below.
The findings set forth above are supported by an NRC staff safety evaluation which is available in ADAMS at ML24319A034.
III.
Accordingly, pursuant to Sections 161b, 161i, 161o, and 184 of the Atomic Energy Act of 1954, as amended, 42 U.S.C. §§ 2201(b), 2201(i), 2201(o), and 2234; and 10 CFR 50.80 and 10 CFR 72.50, IT IS HEREBY ORDERED that that the application regarding the proposed direct license transfer is approved for STP, Units 1 and 2, and the ISFSI.
IT IS ORDERED that after receipt of all required regulatory approvals of the proposed transaction, the Applicants shall inform the Director of the Office of Nuclear Reactor Regulation in writing of such receipt no later than 5 business days prior to the planned closing of the proposed transaction. Should the proposed transaction not be completed by June 11, 2026, this order shall become null and void, provided, however, that upon written application to the Director of the Office of Nuclear Reactor Regulation and for good cause shown, such date may be extended by order. The condition of this order may be amended upon application by the Applicants and approval by the NRC.
This Order is effective upon issuance.
For further details with respect to this Order, see the application dated July 31, 2024, and the associated NRC safety evaluation dated the same date as this order. Publicly available documents created or received at the NRC are accessible electronically through ADAMS in the NRC Library at http://www.nrc.gov/reading-rm/adams.html. Persons who do not have access to ADAMS or who encounter problems in accessing the documents located in ADAMS, should contact the NRC Public Document Room reference staff by telephone at 1-800-397-4209, or 301-415-4737, or by e-mail to pdr.resource@nrc.gov.
Dated: December 1, 2025 FOR THE NUCLEAR REGULATORY COMMISSION
/RA/
Aida Rivera-Varona, Acting Director Division of Operating Reactor Licensing Office of Nuclear Reactor Regulation
ML25328A156 (Package)
ML25328A155 (Letter)
ML25328A152 (Order)
ML25328A150 (FRN - not in package)
OFFICE NRR/DORL/LPL4/PM NRR/DORL/LPL4/LA NRR/DORL/LPL4/BC NAME TByrd PBlechman TNakanishi DATE 11/24/25 11/25/2025 11/25/2025 OFFICE NRR/DORL/D (A)
NRR/DORL/LPL4/PM NAME ARivera-Varona TByrd DATE 11/26/2025 11/26/2025