ML033020104

Request for Additional Information, Regarding Proposed Corporate Restructuring and Request for Indirect License Transfers, Millstone Power Station (TAC Nos. MC0999, MC1000, MC1001)

ML033020104
Person / Time
Site:	Millstone
Issue date:	11/03/2003
From:	Richard Ennis NRC/NRR/DLPM/LPD1
To:	Christian D Dominion Nuclear Connecticut
Ennis R, NRR/DLPM, 415-1420
References
TAC MC0999, TAC MC1000, TAC MC1001
Download: ML033020104 (5)

Text

November 3, 2003 Mr. David A. Christian Sr. Vice President and Chief Nuclear Officer Dominion Nuclear Connecticut, Inc.

Innsbrook Technical Center 5000 Dominion Boulevard Glen Allen, VA 23060-6711

SUBJECT:

REQUEST FOR ADDITIONAL INFORMATION REGARDING PROPOSED CORPORATE RESTRUCTURING AND REQUEST FOR INDIRECT LICENSE TRANSFERS, MILLSTONE POWER STATION, UNIT NOS. 1, 2, AND 3 (TAC NOS. MC0999, MC1000, AND MC1001)

Dear Mr. Christian:

By letter dated October 8, 2003, Dominion Nuclear Connecticut, Inc. (DNC) notified the U.S.

Nuclear Regulatory Commission (NRC) of a proposed corporate restructuring involving the dissolution and creation of certain intermediate subsidiaries of Dominion Resources, Inc.

affecting the chain of ownership of DNC. As such, your letter requested the NRCs consent, to the extent necessary, to the indirect transfer of control of the licenses held by DNC for Millstone Power Station, Unit Nos. 1, 2, and 3. The DNC request was made pursuant to the requirements of Section 50.80(a) of Title 10 of the Code of Federal Regulations.

The NRC staff is reviewing your submittal and has determined that the information contained in the enclosed request for additional information (RAI) is required for the staff to complete its review. An advance copy of these RAI questions was faxed to Mr. Paul Willoughby of your staff on October 29, 2003. We request that the additional information be provided by November 7, 2003. The response timeframe was discussed with Mr. Willoughby on October 30, 2003. If circumstances result in the need to revise your response date, or if you have any questions, please contact me at (301) 415-1420.

Sincerely,

/RA/

Richard B. Ennis, Senior Project Manager, Section 2 Project Directorate I Division of Licensing Project Management Office of Nuclear Reactor Regulation Docket Nos. 50-245, 50-336, and 50-423

Enclosure:

As stated cc w/encl: See next page

ML033020104 OFFICE PDI-2/PM PDI-2/LA RPRP/SC PDI-2/SC NAME REnnis CRaynor BThomas JBoska for JClifford DATE 10/30/03 10/31/03 11/03/03 11/03/03 Millstone Power Station, Unit Nos. 1, 2, and 3 cc:

Lillian M. Cuoco, Esquire Mr. P. J. Parulis Senior Counsel Manager - Nuclear Oversight Dominion Resources Services, Inc. Dominion Nuclear Connecticut, Inc.

Rope Ferry Road Rope Ferry Road Waterford, CT 06385 Waterford, CT 06385 Edward L. Wilds, Jr., Ph.D. Mr. John Markowicz Director, Division of Radiation Co-Chair Department of Environmental Nuclear Energy Advisory Council Protection 9 Susan Terrace 79 Elm Street Waterford, CT 06385 Hartford, CT 06106-5127 Ms. Nancy Burton Regional Administrator, Region I 147 Cross Highway U.S. Nuclear Regulatory Commission Redding Ridge, CT 00870 475 Allendale Road King of Prussia, PA 19406 Mr. G. D. Hicks Director - Nuclear Station Safety and First Selectmen Licensing Town of Waterford Dominion Nuclear Connecticut, Inc.

15 Rope Ferry Road Rope Ferry Road Waterford, CT 06385 Waterford, CT 06385 Mr. W. R. Matthews Mr. Evan W. Woollacott Senior Vice President - Nuclear Operations Co-Chair Dominion Nuclear Connecticut, Inc. Nuclear Energy Advisory Council Rope Ferry Road 128 Terrys Plain Road Waterford, CT 06385 Simsbury, CT 06070 Charles Brinkman, Director Mr. William D. Meinert Washington Operations Nuclear Services Nuclear Engineer Westinghouse Electric Company Massachusetts Municipal Wholesale 12300 Twinbrook Pkwy, Suite 330 Electric Company Rockville, MD 20852 P.O. Box 426 Ludlow, MA 01056 Senior Resident Inspector Millstone Power Station Mr. David W. Dodson c/o U.S. Nuclear Regulatory Commission Licensing Supervisor P. O. Box 513 Dominion Nuclear Connecticut, Inc.

Niantic, CT 06357 Roper Ferry Road Waterford, CT 06385

Millstone Power Station, Unit Nos. 1, 2, and 3 cc:

Mr. S. E. Scace Attorney Nicholas J. Scobbo, Jr.

Assistant to the Site Vice President Ferriter, Scobbo, Caruso, Rodophele, PC Dominion Nuclear Connecticut, Inc. 75 State Street, 7th Floor Rope Ferry Road Boston, MA 02108-1807 Waterford, CT 06385 Ernest C. Hadley, Esquire Mr. M. J. Wilson 1040 B Main Street Manager - Nuclear Training P.O. Box 549 Dominion Nuclear Connecticut, Inc. West Wareham, MA 02576 Rope Ferry Road Waterford, CT 06385 Citizens Regulatory Commission ATTN: Ms. Susan Perry Luxton Mr. A. J. Jordan, Jr. 180 Great Neck Road Director - Nuclear Engineering Waterford, CT 06385 Dominion Nuclear Connecticut, Inc.

Rope Ferry Road Deborah Katz, President Waterford, CT 06385 Citizens Awareness Network P.O. Box 83 Mr. S. P. Sarver Shelburne Falls, MA 03170 Director - Nuclear Station Operations and Maintenance Mr. John Buckingham Dominion Nuclear Connecticut, Inc. Department of Public Utility Control Rope Ferry Road Electric Unit Waterford, CT 06385 10 Liberty Square New Britain, CT 06051 Mr. J. Alan Price Site Vice President Dominion Nuclear Connecticut, Inc.

Rope Ferry Road Waterford, CT 06385 Mr. Chris L. Funderburk Director, Nuclear Licensing and Operations Support Innsbrook Technical Center 5000 Dominion Boulevard Glen Allen, VA 23060-6711 Mr. Allan Johanson, Assistant Director Office of Policy and Management Policy Development & Planning Division 450 Capitol Avenue - MS# 52ERN P.O. Box 341441 Hartford, CT 06134-1441

REQUEST FOR ADDITIONAL INFORMATION REGARDING PROPOSED CORPORATE RESTRUCTURING AND REQUEST FOR INDIRECT LICENSE TRANSFERS MILLSTONE POWER STATION, UNIT NOS. 1, 2, AND 3 DOCKET NOS. 50-245, 50-336, AND 50-423 By letter dated October 8, 2003, Dominion Nuclear Connecticut, Inc. (DNC) notified the U.S.

Nuclear Regulatory Commission (NRC) of a proposed corporate restructuring involving the dissolution and creation of certain intermediate subsidiaries of Dominion Resources, Inc.

affecting the chain of ownership of DNC. As such, DNCs letter requested the NRCs consent, to the extent necessary, to the indirect transfer of control of the licenses held by DNC for Millstone Power Station, Unit Nos. 1, 2, and 3. The DNC request was made pursuant to the requirements of Section 50.80(a) of Title 10 of the Code of Federal Regulations (10 CFR).

The NRC staff is reviewing the DNC submittal and has determined that the following additional information is required to complete the review:

1) Provide five-year financial projections for DNC that cover the years 2004, 2005, 2006, 2007 and 2008. The elements of the five-year projections should include: total revenue; total operating expense; income before taxes and interest; taxes and interest; and net income.

2) In order for the NRC staff to determine the sensitivity that any potential changes in revenue might have on net income, please provide the following financial projection scenarios:

a) a five-year financial projection reflecting a ten-percent reduction in the price for a megawatt-hour of electricity; and b) if your projected capacity factor is higher than your historical capacity factor for the past five years, provide a five-year financial projection reflecting the historical capacity factor (if the projected capacity factor is equal or lower than your historical capacity factor, then no additional sensitivity analysis is necessary).

3) For the new entity, Dominion Energy Marketing, Inc., provide the following information required by 10 CFR 50.33(d)(3):

a) the state where it is incorporated or organized and the principal location where it does business; b) the names, addresses, and citizenship of its directors and of its principal officers; and c) whether it is owned, controlled, or dominated by an alien, a foreign corporation, or foreign government, and if so, give details.

Enclosure