In The Matter of Pennsylvania Power Company; Ohio Edison Company; OES Nuclear, Inc.; The Cleveland Electric Illuminating Company; the Toledo Edison Company; Firstenergy Nuclear Operating Company; Beaver Valley Power Station, Units 1 and 2; Davis-Besse Nuclear Power Station, Unit 1; Perry Nuclear Power Plant, Unit 1; Order Approving Transfer of Licenses and Conforming Amendments, 70107-70109 [E5-6394]
Download as PDF
<![CDATA[
Federal Register / Vol. 70, No. 223 / Monday, November 21, 2005 / Notices
determines to be in controversy among
the parties.’’
The hybrid procedures in section 134
provide for oral argument on matters in
controversy, preceded by discovery
under the Commission’s rules and the
designation, following argument of only
those factual issues that involve a
genuine and substantial dispute,
together with any remaining questions
of law, to be resolved in an adjudicatory
hearing. Actual adjudicatory hearings
are to be held on only those issues
found to meet the criteria of section 134
and set for hearing after oral argument.
The Commission’s rules
implementing section 134 of the NWPA
are found in 10 CFR Part 2, Subpart K,
‘‘Hybrid Hearing Procedures for
Expansion of Spent Fuel Storage
Capacity at Civilian Nuclear Power
Reactors.’’ Under those rules, any party
to the proceeding may invoke the hybrid
hearing procedures by filing with the
presiding officer a written request for
oral argument under 10 CFR 2.1109. To
be timely, the request must be filed
together with a request for hearing/
petition to intervene, filed in
accordance with 10 CFR 2.309. If it is
determined a hearing will be held, the
presiding officer must grant a timely
request for oral argument. The presiding
officer may grant an untimely request
for oral argument only upon a showing
of good cause by the requesting party for
the failure to file on time and after
providing the other parties an
opportunity to respond to the untimely
request. If the presiding officer grants a
request for oral argument, any hearing
held on the application must be
conducted in accordance with the
hybrid hearing procedures. In essence,
those procedures limit the time
available for discovery and require that
an oral argument be held to determine
whether any contentions must be
resolved in an adjudicatory hearing. If
no party to the proceeding timely
requests oral argument, and if all
untimely requests for oral argument are
denied, then the usual procedures in 10
CFR Part 2, Subpart L apply.
For further details with respect to this
action, see the application for
amendment dated September 13, 2005,
which is available for public inspection
at the Commission’s PDR, located at
One White Flint North, File Public Area
O1 F21, 11555 Rockville Pike (first
floor), Rockville, Maryland. Publicly
available records will be accessible from
the Agencywide Documents Access and
Management System’s (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
VerDate Aug<31>2005
15:51 Nov 18, 2005
Jkt 208001
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 9th day
of November 2005.
For the Nuclear Regulatory Commission.
Farideh E. Saba,
Project Manager, Section 1, Project
Directorate II, Division of Licensing Project
Management, Office of Nuclear Reactor
Regulation.
[FR Doc. E5–6395 Filed 11–18–05; 8:45 am]
BILLING CODE 7590–01–P
NUCLEAR REGULATORY
COMMISSION
[Docket Nos. 50–334 and 50–412, License
Nos. DPR–66 and NPF–73; Docket No. 50–
346, License No. NPF–3; Docket No. 50–
440, License No. NPF–58]
In The Matter of Pennsylvania Power
Company; Ohio Edison Company; OES
Nuclear, Inc.; The Cleveland Electric
Illuminating Company; the Toledo
Edison Company; Firstenergy Nuclear
Operating Company; Beaver Valley
Power Station, Units 1 and 2; DavisBesse Nuclear Power Station, Unit 1;
Perry Nuclear Power Plant, Unit 1;
Order Approving Transfer of Licenses
and Conforming Amendments
I.
FirstEnergy Nuclear Operating
Company (FENOC) and Pennsylvania
Power Company (Penn Power), Ohio
Edison Company (Ohio Edison), OES
Nuclear, Inc. (OES Nuclear), the
Cleveland Electric Illuminating
Company (Cleveland Electric), and the
Toledo Edison Company (Toledo
Edison), are holders of Facility
Operating License Nos. DPR–66, NPF–
73, NPF–3 and NPF–58, which
authorize the possession, use, and
operation of Beaver Valley Power
Station, Units 1 (BVPS 1) and 2 (BVPS
2; together with BVPS 1, BVPS), DavisBesse Nuclear Power Station, Unit 1
(Davis-Besse), and Perry Nuclear Power
Plant, Unit 1 (Perry), respectively.
FENOC is licensed by the U.S. Nuclear
Regulatory Commission (NRC, the
Commission) to operate BVPS, DavisBesse, and Perry (the facilities). The
facilities are located at the licensees’
sites in Beaver County, Pennsylvania,
Ottawa County, Ohio, and Lake County,
Ohio, respectively.
II.
By letter dated May 18, 2005, FENOC
submitted an application requesting
PO 00000
Frm 00051
Fmt 4703
Sfmt 4703
70107
approval of direct license transfers that
would be necessary in connection with
the following proposed transfers to
FirstEnergy Nuclear Generation Corp.
(FENGenCo), a new nuclear generation
subsidiary of FirstEnergy: Penn Power’s
65-percent undivided ownership
interest in BVPS 1, 13.74-percent
undivided ownership interest in BVPS
2, and 5.25-percent undivided
ownership interest in Perry.
By letter dated June 1, 2005, FENOC
submitted a second application
requesting approval of direct license
transfers that would be necessary in
connection with the following proposed
transfers to FENGenCo: Ohio Edison’s
35-percent undivided ownership
interest in BVPS 1 and 20.22-percent
undivided ownership interest in BVPS
2; OES Nuclear’s 17.42-percent
undivided ownership interest in Perry;
Cleveland Electric’s 24.47-percent
undivided ownership interest in BVPS
2, 44.85-percent undivided ownership
interest in Perry, and 51.38-percent
undivided ownership interest in DavisBesse; and, Toledo Edison’s 1.65percent undivided ownership interest in
BVPS 2, 19.91-percent undivided
ownership interest in Perry, and 48.62percent undivided ownership interest in
Davis-Besse.
Supplemental information was
provided by letters dated July 15 and
October 31, 2005, (hereinafter, the May
18 and June 1, 2005, applications and
supplemental information will be
referred to collectively as the
‘‘applications’’). FENOC also requested
approval of conforming license
amendments that would reflect the
proposed transfer of ownership of Penn
Power’s interests in BVPS and Perry to
FENGenCo; delete the references to
Penn Power in the licenses; authorize
FENGenCo to possess the respective
ownership interests in BVPS and Perry;
reflect the proposed transfer of
ownership interests in BVPS, DavisBesse, and Perry from Ohio Edison, OES
Nuclear, Cleveland Electric, and Toledo
Edison (Ohio Companies) to FENGenCo;
delete the Ohio Companies from the
licenses; and, authorize FENGenCo to
possess the respective ownership
interests in BVPS, Davis-Besse, and
Perry being transferred by the Ohio
Companies. Ohio Edison’s 21.66-percent
leased interest in BVPS 2, Toledo
Edison’s 18.26-percent leased interest in
BVPS 2, and Ohio Edison’s 12.58percent leased interest in Perry would
not be changed. No physical changes to
the facilities or operational changes
were proposed in the applications. After
completion of the proposed transfers,
FENGenCo and, to a limited extent,
Ohio Edison and Toledo Edison, would
E:\FR\FM\21NON1.SGM
21NON1
70108
Federal Register / Vol. 70, No. 223 / Monday, November 21, 2005 / Notices
be the sole owners of the facilities; the
role of FENOC would be unchanged.
Approval of the transfer of the facility
operating licenses and conforming
license amendments is requested by
FENOC pursuant to Sections 50.80 and
50.90 of Title 10 of the Code of Federal
Regulations (10 CFR). Notices of the
requests for approval and opportunity
for a hearing were published in the
Federal Register on August 2, 2005 (70
FR 44390–44395). No comments were
received. Two petitions for leave to
intervene pursuant to 10 CFR 2.309
were received on August 22, 2005, from
the City of Cleveland, Ohio, and
American Municipal Power-Ohio, Inc. A
joint motion to lodge by the City of
Cleveland, Ohio and Municipal Power
Ohio, Inc., was received on September
12, 2006. The petitions and motion are
under consideration by the Commission.
Pursuant to 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 FENGenCo is
qualified to hold the ownership
interests in the facilities previously held
by Penn Power and the Ohio
Companies, and that the transfers of
undivided ownership interests in the
facilities to FENGenCo described in the
applications are 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 applications for
the proposed license amendments
comply 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 facilities
will operate in conformity with the
applications, 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
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
VerDate Aug<31>2005
15:51 Nov 18, 2005
Jkt 208001
Commission’s regulations and all
applicable requirements have been
satisfied.
The findings set forth above are
supported by an NRC safety evaluation
dated November 15, 2005.
III.
Accordingly, pursuant to Sections
161b, 161i, and 184 of the Act, 42 U.S.C.
§§ 2201(b), 2201(i), and 2234; and 10
CFR 50.80, it is hereby ordered that the
direct transfers of the licenses, as
described herein, to FENGenCo are
approved, subject to the following
conditions:
(1) On the closing date(s) of the transfers
to FENGenCo of their interests in BVPS 1,
BVPS 2, Davis-Besse, and Perry, Penn Power,
Cleveland Electric, Ohio Edison, OES
Nuclear, and Toledo Edison shall transfer to
FENGenCo all of each transferor’s respective
accumulated decommissioning funds for
BVPS 1, BVPS 2, Davis-Besse, and Perry,
except for funds associated with the leased
portions of Perry and BVPS 2, and tender to
FENGenCo additional amounts equal to
remaining funds expected to be collected in
2005, as represented in the application dated
June 1, 2005, but not yet collected by the
time of closing. All of the funds shall be
deposited in separate external trust funds for
each of these four reactors in the same
amounts as received with respect to each unit
to be segregated from other assets of
FENGenCo and outside its administrative
control, as required by NRC regulations, and
FENGenCo shall take all necessary steps to
ensure that these external trust funds are
maintained in accordance with the
requirements of the order approving the
transfer of the licenses and consistent with
the safety evaluation supporting the order
and in accordance with the requirements of
10 CFR Section 50.75, ‘‘Reporting and
recordkeeping for decommissioning
planning.’’
(2) By the date of closing of the transfer of
the ownership interests in BVPS 1, BVPS 2,
and Perry, from Penn Power to FENGenCo,
FENGenCo shall obtain a parent company
guarantee from FirstEnergy in an initial
amount of at least $80 million (in 2005
dollars) to provide additional
decommissioning funding assurance
regarding such ownership interests. Required
funding levels shall be recalculated annually
and, as necessary, FENGenCo shall either
obtain appropriate adjustments to the parent
company guarantee or otherwise provide any
additional decommissioning funding
assurance necessary for FENGenCo to meet
NRC requirements under 10 CFR 50.75.
(3) The Support Agreements described in
the applications dated May 18, 2005 (up to
$80 million), and June 1, 2005 (up to $400
million), shall be effective consistent with
the representations contained in the
applications. FENGenCo shall take no action
to cause FirstEnergy, or its successors and
assigns, to void, cancel, or modify the
Support Agreements without the prior
written consent of the NRC staff, except,
however, the $80 million Support Agreement
PO 00000
Frm 00052
Fmt 4703
Sfmt 4703
in connection with the transfer of the Penn
Power interests may be revoked or rescinded
if and when the $400 million support
agreement described in the June 1, 2005
application becomes effective. FENGenCo
shall inform the Director of the Office of
Nuclear Reactor Regulation, in writing, no
later than 10 days after any funds are
provided to FENGenCo by FirstEnergy under
either Support Agreement.
(4) Prior to completion of the transfers
of the licenses, FENGenCo shall provide
the Director of the Office of Nuclear
Reactor Regulation satisfactory
documentary evidence that it has
obtained the appropriate amount of
insurance required of licensees under 10
CFR Part 140 of the Commission’s
regulations.
(5) It is further ordered that,
consistent with 10 CFR 2.1315(b),
license amendments that make changes,
as indicated in Enclosures 2 through 5
to the cover letter forwarding this Order,
to conform the licenses to reflect the
subject direct license transfers are
approved. FirstEnergy has indicated that
the Pennsylvania transfers described in
the May 18, 2005, application and the
Ohio transfers described in the June 1,
2005, application, will take place at the
same time. The amendments shall be
issued and made effective at the time
the proposed direct license transfers are
completed.
It is further ordered that FENOC shall
inform the Director of the Office of
Nuclear Reactor Regulation in writing of
the date of closing of the transfer of the
Penn Power, Cleveland Electric, Ohio
Edison, OES Nuclear, and Toledo
Edison interests in BVPS 1, BVPS 2,
Davis-Besse, and Perry no later than 5
business days prior to closing. Should
the transfer of the licenses not be
completed by December 31, 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 applications dated
May 18 and June 1, 2005, as
supplemented by letters dated July 15
and October 31, 2005, and the nonproprietary safety evaluation dated
November 15, 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/
E:\FR\FM\21NON1.SGM
21NON1
Federal Register / Vol. 70, No. 223 / Monday, November 21, 2005 / Notices
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 15 day
of November 2005.
For the Nuclear Regulatory Commission.
J.E. Dyer,
Director, Office of Nuclear Reactor
Regulation.
[FR Doc. E5–6394 Filed 11–18–05; 8:45 am]
BILLING CODE 7590–01–P
SECURITIES AND EXCHANGE
COMMISSION
Issuer Delisting; Notice of Application
of McRae Industries, Inc. To Withdraw
Its Class A Common Stock, $1.00 Par
Value and Class B Common Stock,
$1.00 Par Value, From Listing and
Registration on the American Stock
Exchange LLC File No. 1–08578
November 15, 2005.
On November 7, 2005, McRae
Industries, Inc., a Delaware corporation
(‘‘Issuer’’), filed an application with the
Securities and Exchange Commission
(‘‘Commission’’), pursuant to Section
12(d) of the Securities Exchange Act of
1934 (‘‘Act’’) 1 and Rule 12d2–2(d)
thereunder,2 to withdraw its class A
common stock $1.00 par value, and B
common stock, $1.00 par value,
(collectively ‘‘Securities’’), from listing
and registration on the American Stock
Exchange LLC (‘‘Amex’’).
On September 22, 2005, the Board of
Directors (‘‘Board’’) of the Issuer
unaminously approved resolutions to
withdraw the Securities from listing and
registration on Amex. The Issuer stated
the following reasons, factored into the
Board’s decision to withdraw the
Securities from Amex: (1) The Board has
previously adopted resolutions
approving a reverse/forward stock split
of the Securities for the purpose of
permitting the Issuer to deregister the
Securities under the Act (‘‘the
transaction’’) and calling a special
meeting of stockholders for the purpose
of obtaining stockholder approval of the
transaction; (2) one of the primary
purposes of the transaction is to realize
cost savings as a result of no longer
having to prepare and file periodic
reports with the Commission, and so
long as the Securities are listed on
Amex, the Issuer will need to continue
to prepare and file periodic reports with
1 15
2 17
3 15
U.S.C. 78l(d).
CFR 240.12d2–2(d).
VerDate Aug<31>2005
15:51 Nov 18, 2005
the Commission; (3) the Board believes
that the Issuer’s stockholders will
approve the transaction and following
the implementation of the transaction,
the Securities would become ineligible
for listing on Amex; (4) the Issuer could
incur a fee of up to $5,000 from Amex
for implementing the transaction while
the Securities are still listed on Amex
whereas no fee would result from
implementing the transaction after
delisting the Securities from Amex; (5)
to ensure that as a result of
implementing the transaction, the Issuer
avoids the expense that would be
incurred in preparing a Form 10–Q for
the Issuer’s first quarter of fiscal year
2006, it is necessary for the Issuer to
submit to the Commission an
application to withdraw the Securities
from listing on Amex in advance of the
special meeting; (6) as a result of filing
an application to withdraw the
Securities from listing on Amex prior to
the special meeting, the Securities may
be delisted from Amex even if the
transaction is not implemented and
even if the Issuer’s stockholders do not
approve the transaction, but in such
case the Securities would still be
registered under the Act, the Issuer
would still be required to file periodic
reports with the Commission, and the
Securities would be eligible to be
quoted on an inter-dealer quotation
system such as the Nasdaq SmallCap
Market or the OCT Bulletin Board; (7)
the Issuer estimates the potential cost
savings from delisting from Amex to be
in the range of $15,000 annually; and (8)
the Securities are currently quoted on
the Pink Sheets, and following delisting
from Amex, stockholders would
continue to be able to trade their shares
in the over-the-counter markets or
private transactions.
The Issuer stated that it has met the
requirements of Amex’s rules governing
an issuer’s voluntary withdrawal of a
security from listing and registration by
complying with all the applicable laws
in effect in Delaware, the state in which
it is incorporated, and by providing
Amex with the required documents for
withdrawal from Amex.
The Issuer’s application relates solely
to the withdrawal of the Security from
listing on Amex and from registration
under Section 12(b) of the Act,3 and
shall not affect its obligation to be
registered under Section 12(g) of the
Act.4
Any interested person may, on or
before December 12, 2005, comment on
the facts bearing upon whether the
application has been made in
4 15
Jkt 208001
PO 00000
U.S.C. 78l(b).
U.S.C. 78l(g).
Frm 00053
Fmt 4703
accordance with the rules of Amex, and
what terms, if any, should be imposed
by the Commission for the protection of
investors. All comment letters may be
submitted by either of the following
methods:
Electronic Comments
• Use the Commission’s Internet
comment form (https://www.sec.gov/
rules/delist.shtml); or
• Send an e-mail to rulecomments@sec.gov. Please include the
File Number 1–08578 or;
Paper Comments
• Send paper comments in triplicate
to Jonathan G. Katz, Secretary,
Securities and Exchange Commission,
100 F Street, NE., Washington, DC
20549–9303.
All submissions should refer to File
Number 1–08578. This file number
should be included on the subject line
if e-mail is used. To help us process and
review your comments more efficiently,
please use only one method. The
Commission will post all comments on
the Commission’s Internet Web site
(https://www.sec.gov/rules/delist.shtml).
Comments are also available for public
inspection and copying in the
Commission’s Public Reference Room.
All comments received will be posted
without change; we do not edit personal
identifying information from
submissions. You should submit only
information that you wish to make
available publicly.
The Commission, based on the
information submitted to it, will issue
an order granting the application after
the date mentioned above, unless the
Commission determines to order a
hearing on the matter.
For the Commission, by the Division of
Market Regulation, pursuant to delegated
authority.5
Jonathan G. Katz,
Secretary.
[FR Doc. E5–6397 Filed 11–18–05; 8:45 am]
BILLING CODE 8010–01–P
SECURITIES AND EXCHANGE
COMMISSION
Sunshine Act Meeting
Notice is hereby given, pursuant to
the provisions of the Government in the
Sunshine Act, Public Law 94–409, that
the Securities and Exchange
Commission will hold the following
meeting during the week of November
21, 2005:
5 17
Sfmt 4703
70109
CFR 200.30–3(a)(1).
E:\FR\FM\21NON1.SGM
21NON1
]]>Agencies
[Federal Register Volume 70, Number 223 (Monday, November 21, 2005)]
[Notices]
[Pages 70107-70109]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: E5-6394]
-----------------------------------------------------------------------
NUCLEAR REGULATORY COMMISSION
[Docket Nos. 50-334 and 50-412, License Nos. DPR-66 and NPF-73; Docket
No. 50-346, License No. NPF-3; Docket No. 50-440, License No. NPF-58]
In The Matter of Pennsylvania Power Company; Ohio Edison Company;
OES Nuclear, Inc.; The Cleveland Electric Illuminating Company; the
Toledo Edison Company; Firstenergy Nuclear Operating Company; Beaver
Valley Power Station, Units 1 and 2; Davis-Besse Nuclear Power Station,
Unit 1; Perry Nuclear Power Plant, Unit 1; Order Approving Transfer of
Licenses and Conforming Amendments
I.
FirstEnergy Nuclear Operating Company (FENOC) and Pennsylvania
Power Company (Penn Power), Ohio Edison Company (Ohio Edison), OES
Nuclear, Inc. (OES Nuclear), the Cleveland Electric Illuminating
Company (Cleveland Electric), and the Toledo Edison Company (Toledo
Edison), are holders of Facility Operating License Nos. DPR-66, NPF-73,
NPF-3 and NPF-58, which authorize the possession, use, and operation of
Beaver Valley Power Station, Units 1 (BVPS 1) and 2 (BVPS 2; together
with BVPS 1, BVPS), Davis-Besse Nuclear Power Station, Unit 1 (Davis-
Besse), and Perry Nuclear Power Plant, Unit 1 (Perry), respectively.
FENOC is licensed by the U.S. Nuclear Regulatory Commission (NRC, the
Commission) to operate BVPS, Davis-Besse, and Perry (the facilities).
The facilities are located at the licensees' sites in Beaver County,
Pennsylvania, Ottawa County, Ohio, and Lake County, Ohio, respectively.
II.
By letter dated May 18, 2005, FENOC submitted an application
requesting approval of direct license transfers that would be necessary
in connection with the following proposed transfers to FirstEnergy
Nuclear Generation Corp. (FENGenCo), a new nuclear generation
subsidiary of FirstEnergy: Penn Power's 65-percent undivided ownership
interest in BVPS 1, 13.74-percent undivided ownership interest in BVPS
2, and 5.25-percent undivided ownership interest in Perry.
By letter dated June 1, 2005, FENOC submitted a second application
requesting approval of direct license transfers that would be necessary
in connection with the following proposed transfers to FENGenCo: Ohio
Edison's 35-percent undivided ownership interest in BVPS 1 and 20.22-
percent undivided ownership interest in BVPS 2; OES Nuclear's 17.42-
percent undivided ownership interest in Perry; Cleveland Electric's
24.47-percent undivided ownership interest in BVPS 2, 44.85-percent
undivided ownership interest in Perry, and 51.38-percent undivided
ownership interest in Davis-Besse; and, Toledo Edison's 1.65-percent
undivided ownership interest in BVPS 2, 19.91-percent undivided
ownership interest in Perry, and 48.62-percent undivided ownership
interest in Davis-Besse.
Supplemental information was provided by letters dated July 15 and
October 31, 2005, (hereinafter, the May 18 and June 1, 2005,
applications and supplemental information will be referred to
collectively as the ``applications''). FENOC also requested approval of
conforming license amendments that would reflect the proposed transfer
of ownership of Penn Power's interests in BVPS and Perry to FENGenCo;
delete the references to Penn Power in the licenses; authorize FENGenCo
to possess the respective ownership interests in BVPS and Perry;
reflect the proposed transfer of ownership interests in BVPS, Davis-
Besse, and Perry from Ohio Edison, OES Nuclear, Cleveland Electric, and
Toledo Edison (Ohio Companies) to FENGenCo; delete the Ohio Companies
from the licenses; and, authorize FENGenCo to possess the respective
ownership interests in BVPS, Davis-Besse, and Perry being transferred
by the Ohio Companies. Ohio Edison's 21.66-percent leased interest in
BVPS 2, Toledo Edison's 18.26-percent leased interest in BVPS 2, and
Ohio Edison's 12.58-percent leased interest in Perry would not be
changed. No physical changes to the facilities or operational changes
were proposed in the applications. After completion of the proposed
transfers, FENGenCo and, to a limited extent, Ohio Edison and Toledo
Edison, would
[[Page 70108]]
be the sole owners of the facilities; the role of FENOC would be
unchanged.
Approval of the transfer of the facility operating licenses and
conforming license amendments is requested by FENOC pursuant to
Sections 50.80 and 50.90 of Title 10 of the Code of Federal Regulations
(10 CFR). Notices of the requests for approval and opportunity for a
hearing were published in the Federal Register on August 2, 2005 (70 FR
44390-44395). No comments were received. Two petitions for leave to
intervene pursuant to 10 CFR 2.309 were received on August 22, 2005,
from the City of Cleveland, Ohio, and American Municipal Power-Ohio,
Inc. A joint motion to lodge by the City of Cleveland, Ohio and
Municipal Power Ohio, Inc., was received on September 12, 2006. The
petitions and motion are under consideration by the Commission.
Pursuant to 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 FENGenCo is qualified to hold the ownership interests
in the facilities previously held by Penn Power and the Ohio Companies,
and that the transfers of undivided ownership interests in the
facilities to FENGenCo described in the applications are 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 applications for the proposed
license amendments comply 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 facilities
will operate in conformity with the applications, 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 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 findings set forth above are supported by an NRC safety
evaluation dated November 15, 2005.
III.
Accordingly, pursuant to Sections 161b, 161i, and 184 of the Act,
42 U.S.C. Sec. Sec. 2201(b), 2201(i), and 2234; and 10 CFR 50.80, it
is hereby ordered that the direct transfers of the licenses, as
described herein, to FENGenCo are approved, subject to the following
conditions:
(1) On the closing date(s) of the transfers to FENGenCo of their
interests in BVPS 1, BVPS 2, Davis-Besse, and Perry, Penn Power,
Cleveland Electric, Ohio Edison, OES Nuclear, and Toledo Edison
shall transfer to FENGenCo all of each transferor's respective
accumulated decommissioning funds for BVPS 1, BVPS 2, Davis-Besse,
and Perry, except for funds associated with the leased portions of
Perry and BVPS 2, and tender to FENGenCo additional amounts equal to
remaining funds expected to be collected in 2005, as represented in
the application dated June 1, 2005, but not yet collected by the
time of closing. All of the funds shall be deposited in separate
external trust funds for each of these four reactors in the same
amounts as received with respect to each unit to be segregated from
other assets of FENGenCo and outside its administrative control, as
required by NRC regulations, and FENGenCo shall take all necessary
steps to ensure that these external trust funds are maintained in
accordance with the requirements of the order approving the transfer
of the licenses and consistent with the safety evaluation supporting
the order and in accordance with the requirements of 10 CFR Section
50.75, ``Reporting and recordkeeping for decommissioning planning.''
(2) By the date of closing of the transfer of the ownership
interests in BVPS 1, BVPS 2, and Perry, from Penn Power to FENGenCo,
FENGenCo shall obtain a parent company guarantee from FirstEnergy in
an initial amount of at least $80 million (in 2005 dollars) to
provide additional decommissioning funding assurance regarding such
ownership interests. Required funding levels shall be recalculated
annually and, as necessary, FENGenCo shall either obtain appropriate
adjustments to the parent company guarantee or otherwise provide any
additional decommissioning funding assurance necessary for FENGenCo
to meet NRC requirements under 10 CFR 50.75.
(3) The Support Agreements described in the applications dated
May 18, 2005 (up to $80 million), and June 1, 2005 (up to $400
million), shall be effective consistent with the representations
contained in the applications. FENGenCo shall take no action to
cause FirstEnergy, or its successors and assigns, to void, cancel,
or modify the Support Agreements without the prior written consent
of the NRC staff, except, however, the $80 million Support Agreement
in connection with the transfer of the Penn Power interests may be
revoked or rescinded if and when the $400 million support agreement
described in the June 1, 2005 application becomes effective.
FENGenCo shall inform the Director of the Office of Nuclear Reactor
Regulation, in writing, no later than 10 days after any funds are
provided to FENGenCo by FirstEnergy under either Support Agreement.
(4) Prior to completion of the transfers of the licenses, FENGenCo
shall provide the Director of the Office of Nuclear Reactor Regulation
satisfactory documentary evidence that it has obtained the appropriate
amount of insurance required of licensees under 10 CFR Part 140 of the
Commission's regulations.
(5) It is further ordered that, consistent with 10 CFR 2.1315(b),
license amendments that make changes, as indicated in Enclosures 2
through 5 to the cover letter forwarding this Order, to conform the
licenses to reflect the subject direct license transfers are approved.
FirstEnergy has indicated that the Pennsylvania transfers described in
the May 18, 2005, application and the Ohio transfers described in the
June 1, 2005, application, will take place at the same time. The
amendments shall be issued and made effective at the time the proposed
direct license transfers are completed.
It is further ordered that FENOC shall inform the Director of the
Office of Nuclear Reactor Regulation in writing of the date of closing
of the transfer of the Penn Power, Cleveland Electric, Ohio Edison, OES
Nuclear, and Toledo Edison interests in BVPS 1, BVPS 2, Davis-Besse,
and Perry no later than 5 business days prior to closing. Should the
transfer of the licenses not be completed by December 31, 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
applications dated May 18 and June 1, 2005, as supplemented by letters
dated July 15 and October 31, 2005, and the non-proprietary safety
evaluation dated November 15, 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/
[[Page 70109]]
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 15 day of November 2005.
For the Nuclear Regulatory Commission.
J.E. Dyer,
Director, Office of Nuclear Reactor Regulation.
[FR Doc. E5-6394 Filed 11-18-05; 8:45 am]
BILLING CODE 7590-01-P
