ML20095L218

Suppl Application for License Transfer of 12.58% Ownership Interest in Addition to 17.42% Approved on 951220

ML20095L218
Person / Time
Site:	Perry
Issue date:	12/28/1995
From:	Alexander A OHIO EDISON CO.
To:
Shared Package
ML20095L217	List: ML20095L212 ML20095L218
References
NUDOCS 9601020185
Download: ML20095L218 (16)

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UNITED STATES OF AMERICA .

NUCLEAR REGULATORY COMMISSION l

l In the Matter of )

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Cleveland Electric )

Illuminating Company, et al. ) Docket No. 50-440

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(Perry Nuclear Power Plant ) ,

Unit 1) ) l 1

Ohio Edison's Supplemental Application For License Transfer I On November 17,1995, Ohio Edison Company (" Ohio Edison") filed an appli-cation requesting the Nuclear Regulatory Commission ("NRC") to approve under 10 C.F.R. S 50.80 a license transfer for a portion of Ohio Edison's ownership interest in the Perry Nuclear Power Plant (" Perry") to a wholly owned subsidiary, OES Nuclear ,

Inc. ("OES"). On December 20,1995, the NRC issued an order authorizing the trans-fer of license, from Ohio Edison to OES, for the 17.42% ownership share of the NRC licensed facilities for Perry (except for related transmission facilities) as requested by the November 17,1995 application. The NRC found OES " qualified to hold the 9601020185 951228 PDR P

ADOCK 05000440 PDR

1 license to the extent and for the purposes that Ohio Edison is now authorized to hold the license" with respect to this 17.42% ownership interest in the Perry licensed facilities.

In addition to the 17.42% share transferred to OES, Ohio Edison also holds an additional 12.58% ownership interest in a portion of the licensed facilities for the Perry plant that had formerly been denominated as " common facilities" when the owners had previously intended to construct and operate a second unit at the Perry site. Ohio Edison had intended to include this portion of these facilities in its original application filed November 17,1995, but it was inadvertently omitted. Accordingly, this Supplemental Application requests the NRC to approve the transfer to OES of the remaining ownership share held by Ohio Edison in the so-called " common facili-ties," ig., its 12.58% interest not previously transferred pursuant to the NRC's order dated December 20,1995. These " common facilities" include:

Fuel handling and storage facilities, including fuel handling and in-spection equipment, spent fuel storage facilities and associated cooling and clean-up systems, and radiation detection equipment.

Radioactive waste processing facilities, including liquid radioactive waste processing and storage facilities, gaseous radwaste processing and storage, and solid waste processing and storage equipment, along with associated radiation detection and monitoring equipment.

Service equipment, including laboratory equipment, computer equipment, and machine shop tools and equipment.

Site security systems equipment and health physics equipment.

Makeup and discharge water systems, including associated equip-ment, and intake and discharge tunnels.

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l Office and warehouse furniture and equipment, training equip-  :

i ment and reactor simulator,  !

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The license transfer requested by this Supplemental Application will not affect l Ohio Edison's license or financial responsibilities for Perry. Ohio Edison will remain ,

, a named licensee on the Perry license, as well as OES, with the antitrust conditions I

i and other conditions remaining fully applicable to both. Further, the additional own- )

i ership interest to be transferred under this request will be subject to the same contrac- '

i tual arrangements and terms described in the November 17,1995 application. Under i these arrangements, Ohio Edison will make payments to OES in an amount sufficient i

for OES to pay all of its expenses and will retain full responsibility for the costs of op-1

erating, maintaining and decommissioning the interest in Perry transferred to OES, in-r

cluding without limitation any costs associated with meeting NRC safety and other requirements.

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.I Set forth below is the information required by 10 C.F.R. $ 50.80 for the re-quested license transfer. It is substantively identical to that provided in the November j 17,1995 application. A proposed draft notice of the requested transfer for publication i l j in the Federal Register is attached to this application.

i A. GeneralInformation Concerning Ohio Edison Company

1. Name and Address Ohio Edison Company 76 South Main Street Akron, Ohio 44308-1890 (216) 384-5100 3-

4 i 2. Description of Business Ohio Edison is an investor-owned company engaged in generating, transmitting and distributing electric energy in Ohio to residential, commercial and industrial cus-tomers for their own use and in Ohio and elsewhere to wholesale customers for resale.

3. Organization and Management Ohio Edison is organized and existing under the laws of the State of Ohio. All of Ohio Edison's directors and principal officers are citizens of the United States.

Their names and addresses are as follows:

DIRECTORS Name Address Donald C. Blasius 60128 Davie Chapel Hill, N.C. 27514 H. Peter Burg Ohio Edison Company Senior Vice President and 76 South Main Street Chief Financial Officer Akron, Ohio 44308 Robert H. Carlson Pennsylvania Power Company P.O. Box 891 New Castle, PA 16103-0891 Robert M. Caner Carter & Associates 1104 Hanna Bldg.

1422 Euclid Avenue Cleveland, Ohio 44115

Dr. Carol A. Cartwright Kent State University l President Executive Offices Kent, Ohio 44242 Willard R. Holland Ohio Edison Company President and Chief Executive Officer 76 South Main Street Akron, Ohio 44308 Robert L. Loughead 359 Berkshire Drive

! Riva, MD 21140 l

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Russell W. Maier Republic Engineered Steels, Inc.

(Mr. Maier was elected a Director 410 Oberlin Road, S.W.

on December 19,1995.) Massillon, OH 44647 l

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Glenn H. Meadows 3001 Silver Lake Blvd.

Silver Lake, Ohio 44224 l PaulJ. Powers CommercialIntertech Corporation l Chairman of the Board 1775 Logan Avenue J and Chief Executive Officer Youngstown, Ohio 44505 Charles W. Rainger Sandusky International, Inc.

President 615 West Market Street Sandusky, Ohio 44870 l George M. Smart Phoenix Packaging Corporation Chairman of the Board 3075 Brookline Road l

and President P.O. Box 2158 North Canton, Ohio 44720 l

Jesse T. Williams, Sr. Goodyear Tire & Rubber Company Vice President 1144 East Market Street Akron, Ohio 44316 l

PRINCIPAL OFFICERS Name Address Willard R. Holland Ohio Edison Company President and Chief Executive Officer 76 South Main Street  ;

Akron, Ohio 44308 AnthonyJ. Alexander Ohio Edison Company Senior Vice President and 76 South Main Street  !

General Counsel Akron, Ohio 44308 '

H. Peter Burg Ohio Edison Company Senior Vice President and 76 South Main Street Chief Financial Officer Akron, Ohio 44308  !

Robert J. McWhorter Ohio Edison Company 1 Senior Vice President 76 South Main Street Akron, Ohio 44308 l 1

Earl T. Carey Ohio Edison Company i Vice President 76 South Main Street Akron, Ohio 44308 Arthur R. Garfield Ohio Edison Company Vice President 76 South Main Street Akron, Ohio 44308 John A. Gill Ohio Edison Company Vice President 76 South Main Street Akron, Ohio 44308

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Barry M. Miller Ohio Edison Company l' Vice President 76 South Main Street Akron, Ohio 44308 David L. Yeager Ohio Edison Company Vice President 76 South Main Street Akron, Ohio 44308 Nancy C. Brink Ohio Edison Company Secretary 76 South Main Street Akron, Ohio 44308

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Richard H. Marsh Ohio Edison Company Treasurer 76 South Main Street Akron, Ohio 44308 l

Harvey L. Wagner Ohio Edison Company Comptroller 76 South Main Street Akron, Ohio 44308 Theodore F. Struck II Ohio Edison Company Assistant Treasurer and 76 South Main Street Assistant Secretary Akron, Ohio 44308 Ohio Edison Company Howard J. Tuber Assistant Comptroller 76 South Main Street Akron, Ohio 44308 Ohio Edison is not owned, controlled or dominated by an alien, foreign corpo-  :

ration or foreign government. Ohio Edison is not acting as an agent or representative of any another person.

.B. GeneralInformation Concerning OES

1. Name and Address OES Nuclear, Inc.

76 South Main Street Akron, Ohio 44308-1890 .

(216) 384-5100

2. Description of Business OES is a wholly owned subsidiary of Ohio Edison. It will acquire and hold ti-tle to the interest in the Perry Nuclear Power Plant as described in the November 17, 1995 application for license transfer and this Supplemental Application for license transfer. It will sell steam to Ohio Edison produced by the interest in the Perry Nu-clear Power Plant conveyed to it and permit Ohio Edison to use that steam to produce electricity from OES's interest in the Perry turbine generator so transferred.

3. Organization and Management OES is organized and existing under the laws of the State of bhio. All of OES's directors and principal officers are citizens of the United States. Their names and addresses are as follows:

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DIRECTORS Name Address -

Willard R. Holland Ohio Edison Company 76 South Main Street  ;

Akron, Ohio 44308 H. Peter Burg Ohio Edison Company 76 South Main Street Akron, Ohio 44308 l i

David L. Feltner Ohio Edison Company 76 South Main Street Akron, Ohio 44308 OFFICERS Name Address Willard R. Holland Ohio Edison Company President 76 South Main Street Akron, Ohio 44308 David L. Feltner Ohio Edison Company Secretary 76 South Main Street Akron, Ohio 44308 Richard H. Marsh Ohio Edison Company Treasurer 76 South Main Street Akron, Ohio 44308 Theodore F. Struck Ohio Edison Company Assistant Treasurer 76 South Main Street Akron, Ohio 44308 9

As a wholly owned subsidiary of Ohio Edison, OES is not owned or dominated 1 by an alien, foreign corporation or foreign government and will not be acting as an agent or representative of any other person.

i C. Technical Qualifications  !

l The sale of Ohio Edison's incremental 12.58% ownership interest of the Perry Nuclear Power Plant facilities formerly denominated as common facilities and its right to use or lease some or all of that interest from OES relate solely to Ohio Edison's right to possess the Perry nuclear facility under license NPF-58. Ohio Edison has no authority to operate the Perry facility and the requested transfer involves no change to either the management organization or technical personnel responsible for operating and maintaining the Perry nuclear facility. Both before and after the transfer, the Cleveland Electric Illuminating Company ("CEI") and Centerior Service Company

("Centerior") will be responsible for the operation and maintenance of the Perry plant and the CEI and Centerior management organization and technical personnel so re-sponsible will not be changed by the transfer.

D. Financial Qualifications l

Ohio Edison is an electric utility within the meaning of the definition set out in i 10 C.F.R. S 50.2. It generates and distributes electricity and recovers the cost of this electricity through rates authorized by the Public Utilities Commission of Ohio and by the Federal Energy Regulatory Commission. OES, as a wholly owned subsidiary of Ohio Edison and part owner of the Perry generating plant, similarly falls within the definition of an electric utility under 10 C.F.R. S 50.2. Therefore, as concluded by the

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I NRC in its December 20,1995 order, the financial qualifications of OES to possess the Perry plant are presumed by NRC regulations and no specific demonstration is re-quired under 10 C.F.R. S 50.33(f). Moreover, as described in the November 17,1995 application, Ohio Edison will be obligated under the contractual arrangements be-tween Ohio Edison and OES to make payments to OES in an amount sufficient for - i OES to pay all of its costs and expenses with respect to Perry.

E. Decommissioning Funding j NRC regulations require information showing " reasonable assurance . . . that l funds will be available to decommission the facility." 10 C.F.R. S 50.33(k). Ohio Edi- I

on has filed a decommissioning report with the NRC under 10 C.F.R. S 50.75(b) and is providing financial assurance for decommissioning a 30% interest of Perry in accor-dance with the report through an external sinking trust fund in which it deposits mo-nies at least annually. Ohio Edison will remain fully responsible for the l decommissioning liabilities associated with the 30% interest in Perry attributable to it, including the interest subject of this transfer application. As such, the transfer de-scribed in this Supplemental Application will result in no changes being made to the decommissioning trust fund for this 30% interest in Perry. The existing decommis-sioning trust fund will remain with Ohio Edison as will the obligation to make future payments to this fund.

F. Antitrust Information l The proposed license transfer described in this Supplemental Application will result in no change in the applicability of the Perry antitrust conditions to Ohio

Edison or OES, as described in the November 17,1995 application and the NRC's or-der of December 20,1995.

G. Statement Of Purposes For The Transfer And Nature Of The Transaction Necessitating Or Making The Transfer Desirable The sale of Ohio Edison's incremental 12.58% ownership interest of the Perry Nuclear Power Plant facilities formerly denominated as common facilities, for which this Supplemental Application requests a license transfer, is being undertaken in antici-pation of a more competitive marketplace for electricity. Ohio Edison has recently re- ,

1 ceived approval from the Ohio Public Utilities Commission to implement a l

comprehensive rate plan to reduce costs associated with its fixed charges. By restruc-turing in the manner described in the November 17,1995 application, and this Supple- '

mental Application, Ohio Edison will reduce its current operating costs and improve its ability to compete in a cost effective way.

H. Restricted Data This application does not contain any Restricted Data or other defense informa-tion, and it is not expected that any will become involved. However, both Ohio Edi-son and OES agree that they will appropriately safeguard such information if it does  ;

become involved and that they will not permit any individual to have access to Re-stricted Data until the Office of Personnel Management (the successor to the Civil Service Commission) shall have made an investigation and report to the Nuclear Regu-latory Commission on the character, associations, and loyalty of such individual, and the Nuclear Regulatory Commission shall have determined that permitting such person to have ac cess to Restricted Data will not endanger the common defense and security.

Based on the foregoing, the NRC is requested to approve under 10 C.F.R. S j i

50.80 the transfer of Ohio Edison's license and ownership interest in Perry Nuclear  ;

i Power Plant, as described herein, to its wholly owned subsidiary, OES. l l

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l& Y %N AnthonyJ. Alefander Senior Vice President and General Counsel Ohio Edison Company Subscribed to and sworn to before me This28th day of December ,1995 Lw O. %

Notary Pubfic, State of Ohio My Commission expires:

DOROTHY A. BRATANOV NgPublic. Staa of QWe

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ATTACHMENT  !

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.o NUCLEAR REGULATORY COMMISSION (NRC)

[ Docket No. 50-440]

Cleveland Electric Illuminating Company, et al.;

Notice of Transfer of Ownership of Perry Nuclear Power Plant DATE: January _,1996 Notice is hereby given that the United States Nuclear Regulatory Commission (Commission) is considering approval under Title 10 of the Code of Federal Regulations (CFR), Section 50.80, of the transfer of 12.58% of the ownership of certain facilities of the Perry Nuclear Power Plant from the Ohio Edison Company (Ohio Edison) to a wholly owned subsidiary of Ohio Edison, OES Nuclear Inc. (OES). By order dated December 20, 1995 the NRC approved the transfer of a 17.42% ownership share of the NRC licensed facilities for the plant (except for related transmission facilities) held by Ohio Edison to OES, as had been requested by Ohio Edison in an " Application For License Transfer In Connection With Sale And Related Transactions" filed November 17,1995.

A related license a*nendment application, dated November 22,1995, has been filed with the NRC to add OES to the license to reflect the license transfer approved by the NRC's order of December 20,1995. Subsequently, on December 29,1995, Ohio Edison filed a Supplemental Application for License Transfer requesting the NRC to approve the transfer to OES of an additional 12.58% ownership interest in facilities that had formerly been denomMated as " common facilities" when the licensees had intended to construct and operate a second nuclear unit at the Perry site.

Pursuant to 10 CFR 50.80 the Commission may approve the transfer of a license, aller notice to interested persons, upon the Commission's determination that the holder of the license following the transfer of control is qualified to be a holder of the license and that the transfer of control is otherwise consistent with applicable provisions oflaw, regulations, and orders of the Commission. Ohio Edison has requested consent under 10 CFR 50.80 to the transfer of the license effectuated by the change in control of ownership interest described in its Supplemental Application of December 29,1996.

For further details with respect to this action, see the November 17, November 22 and December 29, 1995 letters and the NRC's December 20,1995 order, which are available for public inspection at the Commission's Public Document Room, the Gelman Building,2120 L Street, NW., Washington DC, and at the local public document room located at the Perry Public Library, 3753 main Street, Perry, Ohio 440081

p Dated at Rockville, Maryland this _ day of January 1996 For the Nuclear Regulatory Commission.

Gail H. Marcus, Director, Project Directorate III-3, division of Reactor Projects--III/IV, Office of Nuclear Reactor Regulation.

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