In the Matter of Duke Energy Corporation; Order Approving Application Regarding Proposed Corporate Restructuring and Approving Conforming Amendments, 7802-7803 [E6-2022]

Agencies

• NUCLEAR REGULATORY COMMISSION

[Federal Register Volume 71, Number 30 (Tuesday, February 14, 2006)]
[Notices]
[Pages 7802-7803]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: E6-2022]


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NUCLEAR REGULATORY COMMISSION


In the Matter of Duke Energy Corporation; Order Approving 
Application Regarding Proposed Corporate Restructuring and Approving 
Conforming Amendments

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(Catawba Nuclear Station, Units 1 and 2)..  Docket No. 50-413.
                                            Docket No. 50-414.
                                            Renewed License No. NPF-35.
(McGuire Nuclear Station, Units 1 and 2)..  Docket No. 50-369.
                                            Docket No. 50-370.
                                            Renewed License No. NPF-9.
                                            Renewed License No. NPF-17.
(Oconee Nuclear Station, Units 1, 2, and 3  Docket No. 50-269.
 ) and Oconee Independent Spent Fuel        Docket No. 50-270.
 Storage Installation).                     Docket No. 50-287.
                                            Docket No. 72-004.
                                            Renewed License No. DPR-38.
                                            Renewed License No. DPR-47.
                                            Renewed License No. DPR-55.
                                            License No. SNM-2503.
                                            Renewed License No. NPF-52.
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I.

    Duke Energy Corporation (Duke Energy), the North Carolina Electric 
Membership Corporation, and the Saluda River Electric Cooperative, 
Inc., are the holders of Renewed Facility Operating License No. NPF-35, 
which authorizes the possession, use, and operation of the Catawba 
Nuclear Station, Unit 1. Duke Energy, the North Carolina Municipal 
Power Agency No. 1, and the Piedmont Municipal Power Agency are the 
holders of Renewed Facility Operating License No. NPF-52, which 
authorizes the possession, use, and operation of the Catawba Nuclear 
Station, Unit 2. The Catawba Nuclear Station, Units 1 and 2, is located 
in York County, South Carolina.
    Duke Energy is the holder of Renewed Facility Operating Licenses 
Nos. NPF-9 and NPF-17, which authorizes the possession, use, and 
operation of the McGuire Nuclear Station, Units 1 and 2. The McGuire 
Nuclear Station is located in Mecklenburg County, North Carolina.
    Duke Energy is the holder of Renewed Facility Operating Licenses 
Nos. DPR-38, DPR-47, and DPR-55, which authorize the possession, use, 
and operation of the Oconee Nuclear Station, Units 1, 2, and 3, and 
Materials License No. SNM-2503, which authorizes operation of the 
Oconee Independent Spent Fuel Storage Installation (ISFSI). The Oconee 
Nuclear Station and the ISFSI are located in Oconee County, South 
Carolina.

II.

    By application dated August 5, 2005, as supplemented by letters 
dated November 28 and December 14, 2005, and February 6, 2006, Duke 
Energy requested, pursuant to Title 10 of the Code of Federal 
Regulations (10 CFR), Part 50, Section 50.80 (10 CFR 50.80), consent to 
the indirect license transfers that would be effected by the indirect 
transfer of control of Duke Energy's ownership and/or operating 
interests in Catawba Nuclear Station, Units 1 and 2, McGuire Nuclear 
Station, Units 1 and 2, and Oconee Nuclear Station, Units 1, 2, and 3 
(the Duke nuclear units) and the Oconee ISFSI. This action is being 
sought as a result of a corporate restructuring involving the creation 
of a new holding company which will become the parent of Duke Energy. 
The new holding company, to be named Duke Energy Corporation (referred 
to herein as New Duke Energy, to distinguish it from the licensee, Duke 
Energy), will be created in connection with the merger of Duke Energy 
with Cinergy Corporation (Cinergy). Duke Energy will convert its 
corporate form to a limited liability company (LLC) without 
interruption of its legal existence and be renamed Duke Power Company 
LLC (Duke Power). The holders of the Catawba Nuclear Station Renewed 
Facility Operating Licenses other than Duke Energy are not involved in 
this action.
    Approval of the indirect transfer of the Renewed Facility Operating 
Licenses and the Oconee ISFSI License was requested by Duke Energy 
pursuant to 10 CFR 50.80 and 10 CFR 72.50, respectively. Approval of 
conforming license amendments was requested pursuant to 10 CFR 50.90 
and 72.56. Three notices entitled, ``Notice of Consideration of 
Approval of Application Regarding Proposed Corporate Restructuring and 
Conforming Amendments, and Opportunity for a Hearing,'' were published 
in the Federal Register on December 30, 2005 (70 FR 77430 (Catawba), 70 
FR 77429 (McGuire), and 70 FR 77428 (Oconee)). 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. In 
addition, pursuant to 10 CFR 72.50, no license shall be transferred, 
directly or indirectly, through transfer of control of the license, 
unless the Commission gives its consent in writing. Upon review of the 
information in the application by Duke Energy and other information 
before the Commission, the Nuclear Regulatory Commission (NRC) staff 
has determined that the subject corporate restructuring will not affect 
the qualifications of Duke Energy, converted to Duke Power, to hold the 
licenses to the same extent now held by Duke Energy, and that the 
indirect

[[Page 7803]]

transfer of the licenses effected by the restructuring is otherwise 
consistent with the applicable provisions of laws, regulations, and 
orders issued by the NRC, pursuant thereto. 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 a safety evaluation 
dated February 7, 2006.

III.

    Accordingly, pursuant to Sections 161b, 161i, 161o, and 184 of the 
Atomic Energy Act of 1954, as amended (the Act), 42 U.S.C. 2201(b), 
2201(i), 2201(o), and 2234; and 10 CFR 50.80 and 10 CFR 72.50, It is 
hereby ordered that the application regarding the proposed corporate 
restructuring and indirect license transfers is approved, subject to 
the following condition:

    Duke Power shall provide the Director of the Office of Nuclear 
Reactor Regulation a copy of any application, at the time it is 
filed, to transfer (excluding grants of security interests or liens) 
from Duke Power to its parent, or to any other affiliated company, 
facilities for the production, transmission, or distribution of 
electric energy having a depreciated book value exceeding ten 
percent (10%) of Duke Power's net utility plant, as recorded on its 
books of account.
    It is further ordered that consistent with 10 CFR 2.1315(b), 
license amendments that make changes, as indicated in Enclosures 2 
through 9 to the cover letter forwarding this Order, to reflect the 
subject restructuring action are approved. The amendments shall be 
issued and made effective at the time the proposed restructuring 
action is completed.
    It is further ordered that after receipt of all required 
regulatory approvals of the proposed corporate restructuring and/or 
merger between Duke Energy and Cinergy Corporation, Duke Energy 
shall inform the Director of the Office of Nuclear Reactor 
Regulation in writing of such receipt within 5 business days and of 
the date of the closing of the restructuring no later than 2 
business days prior to the date of closing. Should the proposed 
restructuring not be completed by February 1, 2007, this Order shall 
become null and void, provided, however, upon written application 
and 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 August 5, 2005, as supplemented by letters dated 
November 28 and December 14, 2005, and February 6, 2006, and the safety 
evaluation dated February 7, 2006, 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 7th day of February 2006.

    For the Nuclear Regulatory Commission.
Catherine Haney,
Director, Division of Operating Reactor Licensing, Office of Nuclear 
Reactor Regulation.
E. William Brach,
Director, Spent Fuel Project, Office of Nuclear Material Safety and 
Safeguards.
 [FR Doc. E6-2022 Filed 2-13-06; 8:45 am]
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