ML17303A309

Discusses 860522 Telcon Re Public Svc Co of New Mexico Proposed Holding Company Restructuring.Application of 10CFR50.80 to Proposed Restructuring Questioned Since Util Remains Licensee.Transfer of License Not at Issue

ML17303A309
Person / Time
Site:	Palo Verde
Issue date:	06/09/1986
From:	Moore C KELEHAR & MCLEOD
To:	Reis E NRC OFFICE OF THE GENERAL COUNSEL (OGC)
References
NUDOCS 8702260102
Download: ML17303A309 (8)

Text

REGULATORY INFORMATION DISTRIBUTION SYSTEM (RIDS)f ACCESSIQj'4 NBR: 8702260102 DOC.DATE: 86/06/09 NOT*R I D: NO DOCKET¹FACIL: STN-.50-528 Palo Verde Nuclear Stations Uni t 1i Arizona Pub 1 i 05000528 AUTH.NAME~AUTHOR AFFILIATIQN MOORED C.L.-Kel char 8c NcLeod RECIP.NANE RECIPIENT AFFILIATION REISE E.J.Office of the Executive Legal Director (Pre 860701)

SUBJECT:

Discusses 860522 telcon re Public Svc Co oF New Mex ico proposed holding company-restructuring.

NRC advised that FR notice needed to be publishedi per 10CFR50.80.Informs that proposed restructuring would entail no transfer of license.DISTRIBUTION CODE: 9005D COPIES RECEIVED: LTR ENCL SIZE: TITLE: Licensing Submittal:

Application/General InFo Amdt NOTES: Standardized plant.N.Davis'RR: 1Cg.05ooo5 8 RECIPIENT ID CODE/NANE PWR-B PD7 LA LI CITRATE E 04 CQPIEB LTTR ENCL RECIP I ENT I D CODE/MANE PWR-B PD7 PD 05 COP 1ES LTTR ENCL INTERNAL: ACRB 10 AEOD/PTB AVT/GAB O9 FILE 01 ADM/LFNB ELD/HDS3 OGC/AD SP EXTERNAL LPDR NSIC NOTES: 03 06 NRC PDR 02, TOTAL NUMBER OF COP IEB REQUIRED: LTTR 18 ENCL

I 1~, 0 K l"t tg g'I ,%'i p, C K f~t'a C g>, E PP.Ip~i)~C/l h)F l, h I'P l t~4 ll I'I I~)I pyro V~~5>SAP'ARBARA ALBIN KATHRYN J.KUHLCN RANDOLPH L.HAM OLIN MARK STYLCS EVAN S.HDBBS P.SCOTT EATON MARDARFT E.DAVIDSON THOMAS L, DRICSS PAULA Z.HANSDN THOMAS C.BIRD THOMAS H.TOEVS WILLIAM M.CASEY RICHARD L.ALVIORCZ PATRICK V.APDOACA KURT WIHL RIKKI L.QUINTANA HCLCN'D.HILLEDASS CAROl.LISA SMITH JUDITH L.DURZO THOMAS J.ZIMDRICK RUSSCLL MOORE WILLIAM B.KELCHCR MICHACL L KCLCHER PATRICK W.HURLEY CHARLCS A.PHARRIS RICHARD B.COLE ARTHUR 0 BEACH JOHN M.KULIKDWSKI THOMAS F.KCLCHCR PCTCR H JOHNSTONC HENRY F, NARVAEZ CHARLES L.MOORE ROBERT H CLARK BRIAN J.OsROURKC RONALD F, HORN PHIL KRCHBICL CLYDE F.WORTHEN SPENCER RCIO MICHACI.WILC ELI2ABETH E.WHITCFIELO ROBERT C CONKLIN RF BECCA A.HOUSTON ALBUOUEROUEs NEW MEXICO 67IO3 865590 June 9, 1986 KELEHER 6(McLEOD, P.A.ATTORNEYS AND COUNSELORS AT LAW PUBLIC 5CRVICC BUILDING P.O.DRAWCR AA W.A.KELCHLR Ieee l972 A.H.M c LEO D IDOZ-IBTe JOHN B.TITTMANN OF CDUHSEL TCLCPHONC 842-6262 ARCA COOC 505 File 00431-238 Edwin J.Reis, Esq.Assistant Chief Hearing Counsel Nuclear Regulatory Commission 7735 Old Georgetown Road Room 9604 Bethesda, Maryland 20814 Re

Public Service Company of New Mexico

Dear Ed:

This letter will follow up on my letter of May 22, 1986, concerning Public Service Company of New Mexico ("PNMB)and its proposed holding company restructuring.

As you know, we had provided materials to the Staff on April 23, 1986, including responses to three specific questions raised earlier by Ed Christenbury concerning the proposed restructuring.

In our phone conversation on May 22, 1986, you indicated that some type of notice would be published in the Federal Receister in connection with the holCing company restructuring, and you specifically referred to 10 C.F.R.Section 50.80 as imposing the requirement for such a notice and subsequent Commission action.Upon reflection, and after discussing the matter with Art Gehr and Tim Toy, we are somewhat perplexed as to the ration-ale for requiring a Federal Register'publication and any action by the Commission in connection with the holding company re-structuring.

The formation of holding companies by electric utilities has been rather commonplace in recent years.Many utilities holding nuclear power plant licenses have been involved in such restructurings, yet none of us is aware of any require-ments imposed by the Commission on those restructurings.

Tim Toy had earlier orally provided the names of relevant holding companies (actual and proposed)and utilities to the Staff, and those are reiterated here as follows: I 87ppp+pf 02 860b09 RDR ADQCK 050005Z8 P PDR

~a I' 4 KELEHER 6 McLEOD, P.A.June 9, 1986 Page 2 Holdin Com an Name Electric Utilit Nuclear Power Plant(s)Involved Por tl and General Corp.Por tl and General', Electric Company WPPSS Unit 3;Trojan SCANA South Carolina Electric&Gas Co;V.C.Summer Unit 1 Public Service Enterprise Group Incorporated Public Service Electric&Gas Co.Salem Peach , Units'reek Units 1&2;Bottom 1&2;Hope Units 1&2.Wisconsin Electric Power Company Point Beach Units 1&2 Centerior Toledo Edison Co.and Cleveland Electric Aluminat-ing Company Davis-Besse Unit 1;Perry Units 1&2;Beaver Valley Unit 2 AZP Group, Inc.Dominion Resources Arizona Public Service Company Virginia Electric&Power Company Palo Verde Units 1, 2&3 North Anna Units 1&2;Surry Units 1&2 Houston Industries, Ines Houston Lighting&Power Company South Texas Units 1&2 Florida Progress Corporation Florida Power Corp.Crystal River Unit 3 FPL Group, Inc.Flor ida Power&Light Company Saint Lucie Units 1&2;Turkey Point Units 3&.4 In reviewing 10 C.F.R.Section 50.80, we find it very difficult to see how Section 50.80 applies to the proposed hold-ing company restructuring.

Although there would be an additional intermediary (the holding company)imposed between the utility (PNN)and its present shareholders, the shareholders would be identical upon formation of the holding company.Control would I

KELEHER&McLEQ D, P.A.June 9, 1986 Page 3 therefore be unaffected.

The utility would remain the licensee;thus, there would be no issue of a"transfer" of the license.As indicated in PNM's filing on April 23, 1986, PNM anticipates that the proposed restructuring would not adversely affect the financial resources available to the utility for the reasons indicated therein (see the response to Question 8)and would not affect the management of the utility (see the response to Question 9).PNM is very anxious to have this issue resolved, such that it does not become a last minute stumbling block in connec-tion with its restructuring.

Please let us know if there are any additional questions or comments which you might have.'ours very truly, KELEHER 6 McLEOD, P.A.By eL~~Z.Charles L.Moore cc: Edward S.Christenbury, Esq.Arthur C.Gehr, Esq.Timothy M.Toy, Esq.Mr.A.J.Robison Mr.R.B.Starnes 3351D n 1 I