ML060170306
| ML060170306 | |
| Person / Time | |
|---|---|
| Site: | Millstone  |
| Issue date: | 01/13/2006 |
| From: | Matthews W Dominion Nuclear Connecticut |
| To: | Document Control Desk, NRC/FSME |
| References | |
| 05-782, TAC MC0999, TAC MC1000, TAC MC1001 | |
| Download: ML060170306 (7) | |
Text
Dominion Nuclear Connecticut, Inc. 5000 Dominion Boulevard, Glen Allen, Virginia 23060 b 9 borninion' Wcb Address: www.dom.com January 13,2006 Attention: Document Control Desk NL&OS/PRW: Rev. 1 U.S. Nuclear Regulatory Commission Serial No.: 05-782 Washington, DC 20555 Docket Nos.:
50-245 50-336 50-423 License Nos.: DPR-21 DPR-65 N P F-49 DOMINION NUCLEAR CONNECTICUT, INC. Dominion Nuclear Connecticut, Inc. (DNC) hereby notifies the U. S. Nuclear Regulatory Commission (NRC) of planned changes to certain intermediate subsidiaries of Dominion Resources, Inc. (Dominion Resources), affecting the chain of ownership of DNC. These changes reflect an internal realignment and consolidation of energy marketing functions within the Dominion companies.
DNC will remain a wholly-owned, indirect subsidiary of Dominion Resources and a wholly-owned, indirect subsidiary of Dominion Energy, Inc. (DEI). DNC does not believe that this realignment constitutes a transfer of control. No new subsidiary will acquire a direct or indirect interest in DNC. Instead, an intermediate subsidiary - Dominion Energy Marketing, Inc. (DEMI) - that currently holds a 95% interest in DNC will hold a 100% interest after the realignment. In a letter dated April 2, 2004,(') the NRC issued an order approving the indirect transfer of control of licenses for Millstone Power Station Units 1, 2, and 3 as requested by DNC in its letter of October 8, 2003, and supplemented in a letter dated November 7, 2003. As was described in the April 2, 2004 order, ninety-five percent (95%)
of DNC's outstanding stock is directly owned by DEMl and the remaining five percent (5%)
of DNC's outstanding stock is directly owned by Dominion Nuclear Marketing Ill, L.L.C. (DNM 111). DEMl is a wholly-owned, direct subsidiary of DEI, which in turn is a wholly- owned, direct subsidiary of Dominion Resources. Seventy-five percent (75%)
of DNM Ill's membership interests are directly owned by Dominion Nuclear Holdings, Inc. (DNH) and the remaining twenty-five percent (25%) of DNM Ill's outstanding membership interests are directly owned by Dominion Retail, Inc. (Dominion Retail).
DNH is a wholly-owned, direct subsidiary of DEI. Dominion Retail is a wholly-owned, direct subsidiary of Consolidated Natural Gas Company (CNG), which in turn is a wholly-owned, direct subsidiary of Dominion Resources. This chain of ownership described in the April 2, 2004 order is shown in Exhibit A. Letter from Victor Nerses, U.S. Nuclear Regulatory Commission, to David A. Christian, "Order Approving Indirect Transfer of Control of Licenses Re:
Millstone Power Station, Units 1, 2, and 3 (TAC Nos. MC0999, MC1000 and MC1 OOl)," dated April 2,2004.
Serial No.05-782 Docket Nos. 50-245/336/423 Realignment of Intermediate Subsidiaries Page 2 of 5 The further realignment now proposed will transfer the 5 percent interest in DNC currently held by DNM Ill to DEMI, the wholly-owned, direct subsidiary of DEI. This will increase DEMl's ownership interest in DNC from 95 percent to 100 percent. Thus DNC will become a wholly-owned, direct subsidiary of DEMI. The corporate ownership of DNC after the transfer is shown in Exhibit B.(2) The purpose of these internal changes is to centralize energy marketing of non-system assets and simplify the corporate structure. These changes will not result in any direct transfer or amendment of the facility licenses for the Millstone units which are and will remain held by DNC and, in the case of Millstone Unit 3, certain unaffiliated co-owners. Following the restructuring, DNC will continue to operate and (in conjunction with the unaffiliated co-owners of Unit 3) own the Millstone units.
These corporate changes will not affect or alter the management or technical qualifications of DNC. The change will not affect or alter DNC's organization, staff, officers, or directors, or any of DNC's programs, procedures, or conduct of operations.
The corporate changes described in this letter do not involve any changes to the nuclear plant operations or equipment of the Millstone units.
DNC's directors and principal officers are and will remain U.S. citizens. DNC is not now and will not after restructuring be owned, controlled, or dominated by an alien, foreign corporation, or foreign govern ment. Likewise, the corporate changes will not affect or alter the financial qualifications of DNC. This change will not affect or alter DNC's costs, revenues, or decommissioning funding. The financial qualifications of DNC as described in DNC's November 7, 2003 letter and the NRC's Safety Evaluation regarding the previous realignment of intermediate subsidiaries will not be affected. In addition, the restructuring will not affect or alter the decommissioning funding, which is currently provided by the prepayment method for all three units. Similarly, the restructuring will not affect or alter the support agreement between Dominion Resources and DNC. The support agreement is and will continue to be provided by Dominion Resources as the ultimate parent of the subsidiaries that are being realigned. DNC expects to complete this realignment of subsidiaries on or after February 15, 2006, subject to receipt of approval from the Federal Energy Regulatory Commission and any other necessary regulatory approvals.
(2) This corporate realignment is expected to occur in a number of steps that will be executed essentially simultaneously. First, Dominion Retail's 25% interest in DNM Ill will be transferred to DNH. Then DNM Ill's 5% interest in DNC will be transferred to DNH. DNH will then be merged into DEI. Finally, DEI will contribute its 5% direct interest in DNC to DEMI. It is possible that the realignment could be implemented by other essentially simultaneous steps that result in the final realignment described in this letter.
Serial No.05-782 Docket Nos. 50-245/336/423 Realignment of Intermediate Subsidiaries Page 3 of 5 If you have any questions or concerns about this realignment, please contact Mr. Paul R. Willoughby at (804) 273-3572. There are no regulatory commitments contained within this letter. Very truly yours, uR4d William R. Matthews Senior Vice President - Nuclear Operations Serial No.05-782 Docket Nos. 50-245/336/423 Realignment of Intermediate Subsidiaries Page 4 of 5 cc: U.S. Nuclear Regulatory Commission Region I 475 Allendale Road King of Prussia, PA 19406-1 41 5 Mr. A. B. Wang NRC Project Manager - Millstone Unit 1 U .S. Nuclear Regulatory Com mission One White Flint North 1 1555 Rockville Pike Mail Stop 7 El Rockville, MD 20852-2738 Mr. V. Nerses Senior Project Manager - Millstone Units 2&3 U.S. Nuclear Regulatory Commission One White Flint North 11 555 Rockville Pike Mail Stop 08 C 2 Rockville, MD 20852-2738 Mr. S. M. Schneider NRC Senior Resident Inspector Millstone Power Station Di rector Bureau of Air Management Monitoring and Radiation Division Department of Environmental Protection 79 Elm Street Hartford, CT 061 06-51 27 Serial No.05-782 Docket Nos.
50-245/336/423 Realignment of Intermediate Subsidiaries Page 5 of 5 COMMONWEALTH OF VIRGINIA ) 1 COUNTY OF HENRICO ) The foregoing document was acknowledged before me, in and for the County and Commonwealth aforesaid, today by William R. Matthews who is Senior Vice President - Nuclear Operations of Dominion Nuclear Connecticut, Inc.
He has affirmed before me that he is duly authorized to execute and file the foregoing document in behalf of that Company, and that the statements in the document are true to the best of his knowledge and belief. 2o06- Acknowledged before me this \ 3 day of Notary Public (SEAL)
EXHIBIT A Current CorDorate OwnershiD of Dominion Nuclear Connecticut Resources, Inc. Virginia Electric
& Dominion Con so Ii dated Natural Gas Co. Dominion Energy Dominion Nuclear Marketing, Inc.
Holdings, Inc. 25% Do minion Nuclear Marketing I I I, Connecticut, Inc.
EXHIBIT B Do mi nion Energy, Inc. Corporate Ownership of Dominion Nuclear Connecticut After ProDosed Realianment Con so lidated Natural Gas Co. Dominion Resources, Inc. Dominion Energy Marketing, Inc.
I I Dominion Retail, Inc. Virginia Electric & Power Company