In the Matter of Texas Genco, LP; City Public Service Board of San Antonio; AEP Texas Central Company; STP Nuclear Operating Company (South Texas Project, Units 1 and 2); Order Approving Transfer of Licenses and Conforming Amendments, 20403-20404 [E5-1840]

Agencies

• NUCLEAR REGULATORY COMMISSION

[Federal Register Volume 70, Number 74 (Tuesday, April 19, 2005)]
[Notices]
[Pages 20403-20404]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: E5-1840]


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NUCLEAR REGULATORY COMMISSION

[Docket Nos. 50-498 and 50-499]


In the Matter of Texas Genco, LP; City Public Service Board of 
San Antonio; AEP Texas Central Company; STP Nuclear Operating Company 
(South Texas Project, Units 1 and 2); Order Approving Transfer of 
Licenses and Conforming Amendments

I.

    STP Nuclear Operating Company (STPNOC), and owners Texas Genco, LP 
(Texas Genco), the City Public Service Board of San Antonio (CPS), AEP 
Texas Central Company (TCC), and the City of Austin, Texas (COA) are 
holders of Facility Operating License Nos. NPF-76 and NPF-80, which 
authorize the possession, use, and operation of the South Texas 
Project, Units 1 and 2 (the facility or STP). STPNOC is licensed by the 
U.S. Nuclear Regulatory Commission (NRC or Commission) to operate STP. 
The facility is located at the licensees' site in Matagorda County, 
Texas.

II.

    By letter dated October 21, 2004, STPNOC submitted an application 
requesting approval of direct license transfers that would be necessary 
in connection with the proposed transfer of TCC's 25.2 percent 
undivided ownership interest in the facility to STP current co-owners 
Texas Genco and CPS. The transfer of TCC's interest may occur under one 
of several alternative scenarios described in the application. 
Supplemental information was provided by letters dated December 13 and 
22, 2004, and February 23 and March 1, 2005. Hereinafter, the October 
21, 2004, application and supplemental information will be referred to 
collectively as the ``application.'' STPNOC also requested approval of 
conforming license amendments that would remove TCC from the facility 
operating licenses. After completion of the proposed transfers under 
any proposed scenario, Texas Genco, CPS, and COA would be the sole 
owners of the facility; the role of STPNOC would be unchanged. The 
application also requested NRC approval, as necessary, of any indirect 
transfer of the licenses as held by STPNOC that would be effected by 
the transfer of TCC's ownership interest in STP under any proposed 
scenario.
    Approval of the transfer of the facility operating licenses and 
conforming license amendments was requested by STPNOC pursuant to 50.80 
and 50.90 of Title 10 of the Code of Federal Regulations (10 CFR). 
Notice of the request for approval and an opportunity for a hearing was 
published in the Federal Register on December 20, 2004 (69 FR 76019). 
No comments or hearing requests were received.
    Under 10 CFR 50.80, no license, or any right thereunder, shall be 
transferred, directly or indirectly, through transfer of control of the 
license, unless the Commission shall give its consent in writing. Upon 
review of the information in the application and other information 
before the Commission, and relying upon the representations and 
agreements contained in the application, the NRC staff has determined 
that Texas Genco and CPS are qualified to hold the ownership interest 
in the facility previously held by TCC under the alternative scenarios 
described in the application, and that the transfer of TCC's 25.2 
percent undivided ownership interest in the facility to Texas Genco 
and/or CPS under the alternative scenarios described in the application 
is otherwise consistent with applicable provisions of law, regulations, 
and orders issued by the Commission, subject to the conditions set 
forth below. The NRC staff has further found that the application for 
the proposed license amendments complies with the standards and 
requirements of the Atomic Energy Act of 1954, as amended (the Act), 
and the Commission's rules and regulations set forth in 10 CFR Chapter 
I. The facility will operate in conformity with the application, the 
provisions of the Act and the rules and regulations of the Commission; 
there is reasonable assurance that the activities authorized by the 
proposed license amendments can be conducted without endangering the 
health and safety of the public and that such activities will be 
conducted in compliance with the Commission's regulations; the issuance 
of the proposed license amendments will not be inimical to the common 
defense and

[[Page 20404]]

security or to the health and safety of the public; and the issuance of 
the proposed amendments will be in accordance with 10 CFR part 51 of 
the Commission's regulations and all applicable requirements have been 
satisfied. The NRC staff has also found that to the extent that the 
transfer of TCC's interest as described herein will effect an indirect 
transfer of the licenses as held by STPNOC, such transfer of TCC's 
interest will not affect the qualifications of STPNOC as a holder of 
the licenses, and such indirect transfer of the licenses as held by 
STPNOC is otherwise consistent with applicable provisions of law, 
regulations, and orders issued by the Commission pursuant thereto.
    The findings set forth above are supported by NRC safety evaluation 
dated ------.

III.

    Accordingly, pursuant to Sections 161b, 161o, and 184 of the Act, 
42 U.S.C. 2201(b), 2201(o), and 2234; and 10 CFR 50.80, it is hereby 
ordered that the direct transfer of the licenses as described herein is 
approved, subject to the following conditions:

    1. On the closing date of the transfer of any part of TCC's 
interest in STP to Texas Genco, TCC shall transfer to Texas Genco 
TCC's decommissioning funds accumulated as of such date, as follows: 
(1) If TCC transfers a 13.2 percent interest in STP to Texas Genco, 
TCC shall transfer 52.38 percent (13.2/25.2) of its accumulated 
decommissioning funds to Texas Genco; (2) if TCC transfers its 
entire 25.2 percent interest in STP to Texas Genco, TCC shall 
transfer all of its accumulated decommissioning funds to Texas 
Genco. In either case, Texas Genco shall ensure the deposit of such 
funds received from TCC into an external decommissioning trust 
consistent with the application.
    2. On the closing date of the transfer of any part of TCC's 
interest in STP to CPS, TCC shall transfer to CPS TCC's 
decommissioning funds accumulated as of such date, as follows: (1) 
if TCC transfers a 12.0 percent interest in STP to CPS, TCC shall 
transfer 47.62 percent (12.0/25.2) of its accumulated 
decommissioning funds to CPS; (2) if TCC transfers its entire 25.2 
percent interest in STP to CPS, TCC shall transfer all of its 
accumulated decommissioning funds to CPS. In either case, CPS shall 
ensure the deposit of such funds received from TCC into an external 
decommissioning trust consistent with the application.

    It is further ordered that, consistent with 10 CFR 2.1315(b), 
license amendments that make changes, as indicated in Enclosures 2 and 
3 to the cover letter forwarding this Order, to conform the licenses to 
reflect the subject direct license transfers are approved. The 
amendments shall be issued and made effective at the time the proposed 
direct license transfers are completed.
    It is further ordered that to the extent any indirect transfer of 
the licenses as held by STPNOC would be effected by reason of the 
transfer of TCC's interest in STP, such indirect transfer of the 
licenses is approved.
    It is further ordered that STPNOC shall inform the Director of the 
Office of Nuclear Reactor Regulation in writing of the date of closing 
of the transfer of TCC's interest in STP no later than 5 business days 
prior to closing. Should the transfer of the licenses not be completed 
by April 1, 2006, this Order shall become null and void, provided, 
however, that upon written application and for good cause shown, such 
date may be extended by order.
    This Order is effective upon issuance.
    For further details with respect to this Order, see the initial 
application dated October 21, 2004, as supplemented by letters dated 
December 13 and 22, 2004, and February 23 and March 1, 2005, and the 
non-proprietary safety evaluation dated April 4, 2005, which are 
available for public inspection at the Commission's Public Document 
Room (PDR), located at One White Flint North, Public File Area 01 F21, 
11555 Rockville Pike (first floor), Rockville, Maryland, and accessible 
electronically from the Agencywide Documents Access and Management 
System (ADAMS) Public Electronic Reading Room on the Internet at the 
NRC Web site, https://www.nrc.gov/reading-rm/adams.html. Persons who do 
not have access to ADAMS or who encounter problems in accessing the 
documents located in ADAMS, should contact the NRC PDR Reference staff 
by telephone at 1-800-397-4209, (301) 415-4737, or by e-mail to 
pdr@nrc.gov.

    Dated at Rockville, Maryland this 4th day of April 2005.

    For the Nuclear Regulatory Commission.
J. E. Dyer,
Director, Office of Nuclear Reactor Regulation.
[FR Doc. E5-1840 Filed 4-18-05; 8:45 am]
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