View source for PNO-III-87-131, on 871007,util & Bechtel Power Corp Issued Joint Press Release Announcing Tentative Agreement to Form New Joint Venture Which Would Own & Operate Facility.Util Would Continue to Operate Facility Under Contract for 3 Yrs

{{Adams
| number = ML20235U111
| issue date = 10/07/1987
| title = PNO-III-87-131:on 871007,util & Bechtel Power Corp Issued Joint Press Release Announcing Tentative Agreement to Form New Joint Venture Which Would Own & Operate Facility.Util Would Continue to Operate Facility Under Contract for 3 Yrs
| author name = Marabito R, Strasma J
| author affiliation = NRC OFFICE OF INSPECTION &amp; ENFORCEMENT (IE REGION III)
| addressee name = 
| addressee affiliation = 
| docket = 05000255
| license number = 
| contact person = 
| document report number = PNO-III-87-131, NUDOCS 8710130364
| document type = PRELIMINARY NOTIFICATION OF EVENT OR OCCURRENCE (PNO,, TEXT-INSPECTION &amp; AUDIT &amp; I&amp;E CIRCULARS
| page count = 1
}}
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DREL1MfNARY NOTIFICATION OF EVENT OR UNUSUAL OCCURRENCE--PNO-11In87-131 Date October 7, 1987 This preliminary notification constitutes EARLY. n'otice of events of POSSIBLE safety Dr public interest significance. , The information is as initially received without verification or evaluation, and is basically all that is known by the Region III staff on this date.
facility: Consumers Power Company                              Licensee Emergency Classification:
Palisades                                              Notification of an Unusual Event Covert, MI 49043                                       Alert                              #b Site Area Emergency Docket No. 50-255                                      General Emergency X Not Applicable                            l i
subject: JOINT VENTURE TO BE FORMED TO OWN PALISADES
:onsumers Power Company and the Bechtel Power Corporation issued a joint press release today announcing that they have reached a " tentative" agreement to form a new joint venture, which sould own and operate the Palisades Nuclear Power Plant.
I Jnder the terms of the agreement, Consumers Power would sell Palisades to the joint venture                j Por $550 million. It would also retain one-third ownership. Bechtel and other investors                     i sould own the remaining two-thirds of the plant.
lonsumers Power would continue to operate Palisades under contract to the new joint venture
'or a period of at least 3 to 5 years.
rhe press release said Consumers Power would also receive an additional payment of $50 million from Bechtel. Under the terms of the joint venture agreement, all outstanding issues and Bisputed claims between Bechtel and Consumers Power over the defunct Midland Nuclear Power station will be resolved. (Because of construction and economic problems, Consumers ceased
: construction of the plant in July 1984. The Bechtel Corporation was the architect-engineer and constructor on the project. The two organizations have been in litigation over the Bidland plant.)
'he press release stated that the agreement will be finalized by the end of the year and that
;he required approvals will be secured by mid-1988. The agreement must be approved by the
>oards of directors for both organizations. The plant sale is contingent "upon federal and itate regulatory approvals and upon the joint venture obtaining needed financing."                          I
'he State of Michigan will be notified.
agion III (Chicago) was informed of this proposal on October 6, 1987. This information is                  '
strent as of 9 a.m., October 7, 1987.
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;0NTACT:                                                               J.
o(FTS388-5667)                                 a (FTS 388-5674)
) DISTRIBUTION:
: 1. St.                                 ED0      NRR         E/W        Willste      Mail: ADM:DMB hairman Zech                          PA                    IE         NMSS                 DOT:Trans only
:@mm. Roberts                         ELD                   OIA        RES lcmm. Bernthal                                              AEOD                    NRC Ops Ctr /87 &L dmm. Carr emm. Rogers
,CRS                                  SP/Cl,lh'       Regional Offices ECY A                                      INP0/0,'             NSAC /&AP y I RIII es1 ent Office
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DR Licensee:    /Pl3Dc          (Corp. Office - Reactor Lic. Only) 8710130364 871007
                                                    ~
                   -I                B7-131 PDR                                          *9 ev August 1987}}

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