In the Matter of Entergy Nuclear Operations, Inc.; Entergy Nuclear Indian Point 2, LLC (Indian Point Nuclear Generating Unit No. 2); Entergy Nuclear Indian Point 3, LLC (Indian Point Nuclear Generating Unit No. 3); Order Approving Indirect Transfer of Facility Operating Licenses, 45253-45255 [E8-17780]
Download as PDF
<![CDATA[
Federal Register / Vol. 73, No. 150 / Monday, August 4, 2008 / Notices
pwalker on PROD1PC71 with NOTICES
The NRC staff concludes that the
conversion of Entergy Nuclear
Operations, Inc. to EquaGen Nuclear
LLC would not constitute a direct
transfer of the licenses to the extent held
by ENO. Therefore, no consent to the
proposed conversion is necessary.
The findings set forth above are
supported by the NRC’s safety
evaluation dated July 28, 2008.
III.
Accordingly, pursuant to Sections
161b, 161i, 161o, and 184 of the Atomic
Energy Act of 1954, as amended, 42
U.S.C. 2201(b), 2201(i), 2201(o), and
2234; and 10 CFR 50.80, it is hereby
ordered that the application regarding
the indirect license transfer discussed
above related to the proposed corporate
restructuring and establishment of
Enexus is approved, subject to the
following conditions:
1. EN-Palisades shall enter into the
$700 million Support Agreement with
Enexus Energy Corporation as described
in the application, no later than the time
the proposed transactions and indirect
license transfer occurs. EN-Palisades
shall take no action to cause Enexus
Energy Corporation, or its successors
and assigns, to void, cancel, or modify
the Support Agreement or cause it to fail
to perform, or impair its performance
under the Support Agreement, without
prior written consent of the NRC. The
Support Agreement may not be
amended or modified without 30 days
prior written notice to the Director of
the Office of Nuclear Reactor Regulation
or his designee. An executed copy of the
Support Agreement shall be submitted
to the NRC no later than 30 days after
the completion of the proposed
transactions and the indirect license
transfer. EN-Palisades shall inform the
NRC in writing anytime it draws upon
the Support Agreement.
2. The ten separate support guarantees
from various Entergy subsidiaries,
which total $315 million, including the
support guarantee relating to Palisades,
may be revoked when, and conditioned
upon, implementation of the new $700
million Support Agreement at the time
the proposed restructuring and indirect
license transfer are completed.
3. Should the proposed corporate
restructuring and establishment of
Enexus not be completed within one
year from the date of this Order, 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 application dated July 30,
2007, as supplemented by letters dated
VerDate Aug<31>2005
16:50 Aug 01, 2008
Jkt 214001
October 31, and December 5, 2007, and
January 24, March 17, April 22, and
May 2, 2008, and the NRC’s safety
evaluation dated July 28, 2008, 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 28th day
of July 2008.
For the Nuclear Regulatory Commission.
Timothy J. McGinty,
Acting Director, Division of Operating Reactor
Licensing, Office of Nuclear Reactor
Regulation.
[FR Doc. E8–17778 Filed 8–1–08; 8:45 am]
BILLING CODE 7590–01–P
NUCLEAR REGULATORY
COMMISSION
[Docket Nos. 50–247 and 72–51; Docket No.
50–286]
In the Matter of Entergy Nuclear
Operations, Inc.; Entergy Nuclear
Indian Point 2, LLC (Indian Point
Nuclear Generating Unit No. 2);
Entergy Nuclear Indian Point 3, LLC
(Indian Point Nuclear Generating Unit
No. 3); Order Approving Indirect
Transfer of Facility Operating Licenses
I
Entergy Nuclear Operations, Inc.
(ENO) and Entergy Nuclear Indian Point
2, LLC (ENIP2) are co-holders of the
Facility Operating License, No. DPR–26,
which authorizes the possession, use,
and operation of the Indian Point
Nuclear Generating Unit No. 2 (IP2).
ENO and Entergy Nuclear Indian Point
3, LLC (ENIP3) are co-holders of the
Facility Operating License, No. DPR–64,
which authorizes the possession, use,
and operation of the Indian Point
Nuclear Generating Unit No. 3 (IP3). IP2
and IP3 are both pressurized water
nuclear reactors that are owned by
ENIP2 and ENIP3, respectively, and
operated by ENO. The facilities are
located in Westchester County, New
York.
PO 00000
Frm 00049
Fmt 4703
Sfmt 4703
45253
II
By application dated July 30, 2007, as
supplemented by letters dated October
31, and December 5, 2007, and January
24, March 17, April 22, and May 2,
2008, ENO, acting on behalf of itself,
ENIP2, and ENIP3, requested that the
U.S. Nuclear Regulatory Commission
(NRC, the Commission), pursuant to
Section 50.80 of Title 10 of the Code of
Federal Regulations (10 CFR), consent
to the proposed indirect transfer of
control of the IP2 and IP3 licenses,
including the general license for the
independent spent fuel storage
installation.
ENIP2 is currently a direct wholly
owned subsidiary of Entergy Nuclear
Holding Company #3, LLC. Entergy
Nuclear Holding Company #3, LLC is a
direct wholly owned subsidiary of
Entergy Nuclear Holding Company
which, in turn, is a direct wholly owned
subsidiary of Entergy Corporation.
Therefore, under the current corporate
structure, Entergy Corporation is the
indirect owner of 100 percent of ENIP2.
Under the proposed corporate
restructuring, a new holding company,
Enexus Energy Corporation (Enexus),
will be created. Initially, the public
shareholders of Entergy Corporation
will separately own the shares of
Enexus and, as such, Enexus will be
owned by the public. Entergy Nuclear
Holding Company, an indirect parent
company of ENIP2, will become a direct
wholly owned subsidiary of Enexus.
Accordingly, following the corporate
restructuring, Enexus will acquire
indirect control of 100 percent of ENIP2.
ENIP3 is currently a direct wholly
owned subsidiary of Entergy Nuclear
New York Investment Company 1
which, in turn, is a direct wholly owned
subsidiary of Entergy Nuclear Holding
Company #1. Seventy-five percent of
Entergy Nuclear Holding Company #1 is
directly owned by Entergy Corporation
while the remaining 25 percent is
directly owned by Entergy Global, LLC.
Entergy Global, LLC is a direct wholly
owned subsidiary of Entergy
International Holdings LTD which, in
turn, is a direct wholly owned
subsidiary of Entergy Corporation.
Therefore, under the current corporate
structure, Entergy Corporation is the
indirect owner of 100 percent of ENIP3.
Under the proposed restructuring,
Entergy Nuclear Holding Company #1
will become a direct wholly owned
subsidiary of Enexus. Entergy Global,
LLC, Entergy International Holdings
LTD, and Entergy Nuclear New York
Investment Company 1 will be
eliminated. Accordingly, following the
corporate restructuring, Enexus will
E:\FR\FM\04AUN1.SGM
04AUN1
pwalker on PROD1PC71 with NOTICES
45254
Federal Register / Vol. 73, No. 150 / Monday, August 4, 2008 / Notices
acquire indirect control of 100 percent
of ENIP3.
ENO is currently a direct wholly
owned subsidiary of Entergy Nuclear
Holding Company #2 which, in turn, is
a direct wholly owned subsidiary of
Entergy Corporation. Therefore, Entergy
Corporation is currently the indirect
owner of 100 percent of ENO.
Under the proposed corporate
restructuring, Entergy Nuclear Holding
Company #2 will be eliminated and
ENO will become a direct subsidiary of
a new parent company called EquaGen
LLC. EquaGen LLC will be owned in
equal shares by two new intermediate
holding companies as follows. Entergy
EquaGen, Inc. is being created as a
direct subsidiary of Entergy Corporation
and will own 50 percent of EquaGen
LLC. Similarly, Enexus EquaGen, LLC is
being created as a direct subsidiary of
Enexus and will also own 50 percent of
EquaGen LLC. Accordingly, following
the corporate restructuring, Entergy
Corporation and Enexus will each have
indirect control of 50 percent of ENO.
Finally, ENO will be converted from
a corporation to a limited liability
company and its name will be changed
from Entergy Nuclear Operations, Inc. to
EquaGen Nuclear LLC. Under Delaware
law, EquaGen Nuclear LLC will assume
all of the rights and responsibilities of
ENO, and it will be the same company
(legal entity) both before and after the
conversion and name change. Also,
ENIP2 and ENIP3 will undergo name
changes to become Enexus Nuclear
Indian Point 2, LLC and Enexus Nuclear
Indian Point 3, LLC, respectively. The
staff understands that ENO will submit
requests for administrative license
amendments to conform the affected
licenses in the near future.
Notice of the requests for approval
and an opportunity for a hearing was
published in the Federal Register on
January 16, 2008 (73 FR 2955). By
petition dated February 5, 2008, Locals
369 and 590, Utility Workers Union of
America (UWUA), American Federation
of Labor-Congress of Industrial
Organization, representing plant
workers at the Pilgrim Nuclear Power
Station located in Plymouth,
Massachusetts, responded to the
Federal Register notice and requested a
hearing and leave to intervene as a party
in the proceedings for the Indian Point
Nuclear Generating Unit Nos. 2 and 3.
On June 12, 2008, Local 369 filed a
notice of withdrawal of its petition to
intervene. The notice of withdrawal did
not apply to Local 590. In addition, by
petition dated February 5, 2008, the
Westchester Citizen’s Awareness
Network, Rockland County
Conservation Association, Promoting
VerDate Aug<31>2005
16:50 Aug 01, 2008
Jkt 214001
Health and Sustainable Energy, Sierra
Club—North East Chapter, and Richard
Brodsky collectively filed a request for
hearing and petition for leave to
intervene as a party in the proceedings
for the Indian Point Nuclear Generating
Unit Nos. 2 and 3.
Both of these requests for hearings are
currently pending before the
Commission. Pursuant to 10 CFR
2.1316, during the pendency of a
hearing, the staff is expected to
promptly proceed with the approval or
denial of license transfer requests
consistent with the staff’s findings in its
safety evaluation. Notice of the staff’s
action shall be promptly transmitted to
the presiding officer and parties to the
proceeding. Commission action on the
pending hearing requests is being
handled independently of this action.
Also, an intervenor from Oswego,
New York, submitted two letters to the
Commission with public comments
dated January 21, 2008, along with an
electronic transmission containing
public comments dated January 27,
2008. The public comments are
addressed by the NRC’s safety
evaluation dated July 28, 2008.
Pursuant to 10 CFR 50.80(a), 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 as
supplemented and other information
before the Commission, and relying
upon the representations and
agreements in the application as
supplemented, the NRC staff concludes
that the proposed indirect transfer of
control of the licenses held by ENIP2
and ENIP3 to Enexus, as described
herein, will not affect the qualifications
of ENIP2 and ENIP3 as holders of the
IP2 and IP3 licenses, respectively. The
indirect transfer of control of the
licenses is otherwise consistent with
applicable provisions of law,
regulations, and orders issued by the
NRC. Furthermore, the NRC staff
concludes that the proposed corporate
restructuring involving new
intermediate and ultimate parent
companies over ENO, as described
herein, will not affect the qualifications
of ENO as holder of the IP2 and IP3
licenses. The indirect transfer of control
of the licenses as held by ENO, to the
extent affected by the proposed
restructuring, is otherwise consistent
with applicable provisions of law,
regulations, and orders issued by the
Commission.
The NRC staff concludes that the
conversion of Entergy Nuclear
Operations, Inc. to EquaGen Nuclear
PO 00000
Frm 00050
Fmt 4703
Sfmt 4703
LLC would not constitute a direct
transfer of the licenses to the extent held
by ENO. Therefore, no consent to the
proposed conversion is necessary.
The findings set forth above are
supported by the NRC’s safety
evaluation dated July 28, 2008.
III.
Accordingly, pursuant to Sections
161b, 161i, 161o, and 184 of the Atomic
Energy Act of 1954, as amended, 42
U.S.C. 2201(b), 2201(i), 2201(o), and
2234; and 10 CFR 50.80, it is hereby
ordered that the application regarding
the indirect license transfers discussed
above related to the proposed corporate
restructuring and establishment of
Enexus is approved, subject to the
following conditions:
1. ENIP2 and ENIP3 shall enter into
the $700 million Support Agreement
with Enexus Energy Corporation as
described in the application, no later
than the time the proposed transactions
and indirect license transfer occurs.
ENIP2 and ENIP3 shall take no action to
cause Enexus Energy Corporation, or its
successors and assigns, to void, cancel,
or modify the Support Agreement or
cause it to fail to perform, or impair its
performance under the Support
Agreement, without prior written
consent of the NRC. The Support
Agreement may not be amended or
modified without 30 days prior written
notice to the Director of the Office of
Nuclear Reactor Regulation or his
designee. An executed copy of the
Support Agreement shall be submitted
to the NRC no later than 30 days after
the completion of the proposed
transactions and the indirect license
transfer. ENIP2 and ENIP3 shall inform
the NRC in writing anytime it draws
upon the Support Agreement.
2. The ten separate support guarantees
from various Entergy subsidiaries,
which total $315 million, including the
support guarantees relating to IP2 and
IP3, may be revoked when, and
conditioned upon, implementation of
the new $700 million Support
Agreement at the time the proposed
restructuring and indirect license
transfer are completed.
3. Should the proposed corporate
restructuring and establishment of
Enexus not be completed within one
year from the date of this Order, 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 application dated July 30,
2007, as supplemented by letters dated
October 31, and December 5, 2007, and
E:\FR\FM\04AUN1.SGM
04AUN1
Federal Register / Vol. 73, No. 150 / Monday, August 4, 2008 / Notices
January 24, March 17, April 22, and
May 2, 2008, and the NRC’s safety
evaluation dated July 28, 2008, 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 28th day
of July 2008.
For the Nuclear Regulatory Commission.
Timothy J. McGinty,
Acting Director, Division of Operating Reactor
Licensing, Office of Nuclear Reactor
Regulation.
[FR Doc. E8–17780 Filed 8–1–08; 8:45 am]
BILLING CODE 7590–01–P
NUCLEAR REGULATORY
COMMISSION
[Docket No. 50–003]
In the Matter of Entergy Nuclear
Operations, Inc; Entergy Nuclear
Indian Point 2, LLC; (Indian Point
Nuclear Generating Unit No. 1); Order
Approving Indirect Transfer of Facility
Operating License
I
Entergy Nuclear Operations, Inc.
(ENO) and Entergy Nuclear Indian Point
2, LLC (ENIP2) are co-holders of the
Facility Operating License, No. DPR–5,
which authorizes the possession of the
Indian Point Nuclear Generating Unit
No. 1 (IP1). IP1 is a pressurized water
nuclear reactor that is owned by ENIP2
and maintained by ENO. IP1 was
permanently shut down in 1974 and
placed in a safe storage condition
pending decommissioning. The facility
is located in Westchester County, New
York.
pwalker on PROD1PC71 with NOTICES
II
By application dated July 30, 2007, as
supplemented by letters dated October
31, and December 5, 2007, and January
24, March 17, April 22, and May 2,
2008, ENO, acting on behalf of itself and
ENIP2, requested that the U.S. Nuclear
Regulatory Commission (NRC, the
Commission), pursuant to Section 50.80
VerDate Aug<31>2005
16:50 Aug 01, 2008
Jkt 214001
of Title 10 of the Code of Federal
Regulations (10 CFR), consent to the
proposed indirect transfer of control of
the IP1 license.
ENIP2 is currently a direct wholly
owned subsidiary of Entergy Nuclear
Holding Company #3, LLC. Entergy
Nuclear Holding Company #3, LLC is a
direct wholly owned subsidiary of
Entergy Nuclear Holding Company
which, in turn, is a direct wholly owned
subsidiary of Entergy Corporation.
Therefore, under the current corporate
structure, Entergy Corporation is the
indirect owner of 100 percent of ENIP2.
Under the proposed corporate
restructuring, a new holding company,
Enexus Energy Corporation (Enexus),
will be created. Initially, the
shareholders of Entergy Corporation
will separately own the shares of
Enexus and, as such, Enexus will be
owned by the public. Entergy Nuclear
Holding Company will become a direct
wholly owned subsidiary of Enexus.
Accordingly, following the corporate
restructuring, Enexus will acquire
indirect control of 100 percent of ENIP2.
ENO is currently a direct wholly
owned subsidiary of Entergy Nuclear
Holding Company #2 which, in turn, is
a direct wholly owned subsidiary of
Entergy Corporation. Therefore, Entergy
Corporation is currently the indirect
owner of 100 percent of ENO.
Under the proposed corporate
restructuring, Entergy Nuclear Holding
Company #2 will be eliminated and
ENO will become a direct subsidiary of
a new parent company called EquaGen
LLC. EquaGen LLC will be owned in
equal shares by two new intermediate
holding companies as follows. Entergy
EquaGen, Inc. is being created as a
direct subsidiary of Entergy Corporation
and will own 50 percent of EquaGen
LLC. Similarly, Enexus EquaGen, LLC is
being created as a direct subsidiary of
Enexus and will also own 50 percent of
EquaGen LLC. Accordingly, following
the corporate restructuring, Entergy
Corporation and Enexus will each have
indirect control of 50 percent of ENO.
Finally, ENO will be converted from
a corporation to a limited liability
company and its name will be changed
from Entergy Nuclear Operations, Inc. to
EquaGen Nuclear LLC. Under Delaware
law, EquaGen Nuclear LLC will assume
all of the rights and responsibilities of
ENO, and it will be the same company
(legal entity) both before and after the
conversion and name change. Also,
ENIP2 will undergo a name change to
become Enexus Nuclear Indian Point 2,
LLC. The staff understands that ENO
will request an administrative license
amendment to conform the IP1 license
in the near future.
PO 00000
Frm 00051
Fmt 4703
Sfmt 4703
45255
Notice of the request for approval and
an opportunity for a hearing was
published in the Federal Register on
January 16, 2008 (73 FR 2955). By
petition dated February 5, 2008, Locals
369 and 590, Utility Workers Union of
America (UWUA), American Federation
of Labor-Congress of Industrial
Organization, representing plant
workers at the Pilgrim Nuclear Power
Station located in Plymouth,
Massachusetts, responded to the
Federal Register notice and requested a
hearing and leave to intervene as a party
in the proceedings for the Indian Point
Nuclear Generating Unit No. 1. On June
12, 2008, Local 369 filed a notice of
withdrawal of its petition to intervene.
The notice of withdrawal did not apply
to Local 590. In addition, by petition
dated February 5, 2008, the Westchester
Citizen’s Awareness Network, Rockland
County Conservation Association,
Promoting Health and Sustainable
Energy, Sierra Club—North East
Chapter, and Richard Brodsky
collectively filed a request for hearing
and petition for leave to intervene as a
party in the proceedings for the Indian
Point Nuclear Generating Unit No. 1.
Both of these requests for hearings are
currently pending before the
Commission. Pursuant to 10 CFR
2.1316, during the pendency of a
hearing, the staff is expected to
promptly proceed with the approval or
denial of license transfer requests
consistent with the staff’s findings in its
safety evaluation. Notice of the staff’s
action shall be promptly transmitted to
the presiding officer and parties to the
proceeding. Commission action on the
pending hearing requests is being
handled independently of this action.
Also, an intervenor from Oswego,
New York, submitted two letters to the
Commission with public comments
dated January 21, 2008, along with an
electronic transmission containing
public comments dated January 27,
2008. The public comments are
addressed by the NRC’s safety
evaluation dated July 28, 2008.
Pursuant to 10 CFR 50.80(a), 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 as
supplemented and other information
before the Commission, and relying
upon the representations and
agreements in the application as
supplemented, the NRC staff concludes
that the proposed indirect transfer of
control of the license held by ENIP2 to
Enexus, as described herein, will not
affect the qualifications of ENIP2 as
E:\FR\FM\04AUN1.SGM
04AUN1
]]>Agencies
[Federal Register Volume 73, Number 150 (Monday, August 4, 2008)]
[Notices]
[Pages 45253-45255]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: E8-17780]
-----------------------------------------------------------------------
NUCLEAR REGULATORY COMMISSION
[Docket Nos. 50-247 and 72-51; Docket No. 50-286]
In the Matter of Entergy Nuclear Operations, Inc.; Entergy
Nuclear Indian Point 2, LLC (Indian Point Nuclear Generating Unit No.
2); Entergy Nuclear Indian Point 3, LLC (Indian Point Nuclear
Generating Unit No. 3); Order Approving Indirect Transfer of Facility
Operating Licenses
I
Entergy Nuclear Operations, Inc. (ENO) and Entergy Nuclear Indian
Point 2, LLC (ENIP2) are co-holders of the Facility Operating License,
No. DPR-26, which authorizes the possession, use, and operation of the
Indian Point Nuclear Generating Unit No. 2 (IP2). ENO and Entergy
Nuclear Indian Point 3, LLC (ENIP3) are co-holders of the Facility
Operating License, No. DPR-64, which authorizes the possession, use,
and operation of the Indian Point Nuclear Generating Unit No. 3 (IP3).
IP2 and IP3 are both pressurized water nuclear reactors that are owned
by ENIP2 and ENIP3, respectively, and operated by ENO. The facilities
are located in Westchester County, New York.
II
By application dated July 30, 2007, as supplemented by letters
dated October 31, and December 5, 2007, and January 24, March 17, April
22, and May 2, 2008, ENO, acting on behalf of itself, ENIP2, and ENIP3,
requested that the U.S. Nuclear Regulatory Commission (NRC, the
Commission), pursuant to Section 50.80 of Title 10 of the Code of
Federal Regulations (10 CFR), consent to the proposed indirect transfer
of control of the IP2 and IP3 licenses, including the general license
for the independent spent fuel storage installation.
ENIP2 is currently a direct wholly owned subsidiary of Entergy
Nuclear Holding Company 3, LLC. Entergy Nuclear Holding
Company 3, LLC is a direct wholly owned subsidiary of Entergy
Nuclear Holding Company which, in turn, is a direct wholly owned
subsidiary of Entergy Corporation. Therefore, under the current
corporate structure, Entergy Corporation is the indirect owner of 100
percent of ENIP2.
Under the proposed corporate restructuring, a new holding company,
Enexus Energy Corporation (Enexus), will be created. Initially, the
public shareholders of Entergy Corporation will separately own the
shares of Enexus and, as such, Enexus will be owned by the public.
Entergy Nuclear Holding Company, an indirect parent company of ENIP2,
will become a direct wholly owned subsidiary of Enexus. Accordingly,
following the corporate restructuring, Enexus will acquire indirect
control of 100 percent of ENIP2.
ENIP3 is currently a direct wholly owned subsidiary of Entergy
Nuclear New York Investment Company 1 which, in turn, is a direct
wholly owned subsidiary of Entergy Nuclear Holding Company 1.
Seventy-five percent of Entergy Nuclear Holding Company 1 is
directly owned by Entergy Corporation while the remaining 25 percent is
directly owned by Entergy Global, LLC. Entergy Global, LLC is a direct
wholly owned subsidiary of Entergy International Holdings LTD which, in
turn, is a direct wholly owned subsidiary of Entergy Corporation.
Therefore, under the current corporate structure, Entergy Corporation
is the indirect owner of 100 percent of ENIP3.
Under the proposed restructuring, Entergy Nuclear Holding Company
1 will become a direct wholly owned subsidiary of Enexus.
Entergy Global, LLC, Entergy International Holdings LTD, and Entergy
Nuclear New York Investment Company 1 will be eliminated. Accordingly,
following the corporate restructuring, Enexus will
[[Page 45254]]
acquire indirect control of 100 percent of ENIP3.
ENO is currently a direct wholly owned subsidiary of Entergy
Nuclear Holding Company 2 which, in turn, is a direct wholly
owned subsidiary of Entergy Corporation. Therefore, Entergy Corporation
is currently the indirect owner of 100 percent of ENO.
Under the proposed corporate restructuring, Entergy Nuclear Holding
Company 2 will be eliminated and ENO will become a direct
subsidiary of a new parent company called EquaGen LLC. EquaGen LLC will
be owned in equal shares by two new intermediate holding companies as
follows. Entergy EquaGen, Inc. is being created as a direct subsidiary
of Entergy Corporation and will own 50 percent of EquaGen LLC.
Similarly, Enexus EquaGen, LLC is being created as a direct subsidiary
of Enexus and will also own 50 percent of EquaGen LLC. Accordingly,
following the corporate restructuring, Entergy Corporation and Enexus
will each have indirect control of 50 percent of ENO.
Finally, ENO will be converted from a corporation to a limited
liability company and its name will be changed from Entergy Nuclear
Operations, Inc. to EquaGen Nuclear LLC. Under Delaware law, EquaGen
Nuclear LLC will assume all of the rights and responsibilities of ENO,
and it will be the same company (legal entity) both before and after
the conversion and name change. Also, ENIP2 and ENIP3 will undergo name
changes to become Enexus Nuclear Indian Point 2, LLC and Enexus Nuclear
Indian Point 3, LLC, respectively. The staff understands that ENO will
submit requests for administrative license amendments to conform the
affected licenses in the near future.
Notice of the requests for approval and an opportunity for a
hearing was published in the Federal Register on January 16, 2008 (73
FR 2955). By petition dated February 5, 2008, Locals 369 and 590,
Utility Workers Union of America (UWUA), American Federation of Labor-
Congress of Industrial Organization, representing plant workers at the
Pilgrim Nuclear Power Station located in Plymouth, Massachusetts,
responded to the Federal Register notice and requested a hearing and
leave to intervene as a party in the proceedings for the Indian Point
Nuclear Generating Unit Nos. 2 and 3. On June 12, 2008, Local 369 filed
a notice of withdrawal of its petition to intervene. The notice of
withdrawal did not apply to Local 590. In addition, by petition dated
February 5, 2008, the Westchester Citizen's Awareness Network, Rockland
County Conservation Association, Promoting Health and Sustainable
Energy, Sierra Club--North East Chapter, and Richard Brodsky
collectively filed a request for hearing and petition for leave to
intervene as a party in the proceedings for the Indian Point Nuclear
Generating Unit Nos. 2 and 3.
Both of these requests for hearings are currently pending before
the Commission. Pursuant to 10 CFR 2.1316, during the pendency of a
hearing, the staff is expected to promptly proceed with the approval or
denial of license transfer requests consistent with the staff's
findings in its safety evaluation. Notice of the staff's action shall
be promptly transmitted to the presiding officer and parties to the
proceeding. Commission action on the pending hearing requests is being
handled independently of this action.
Also, an intervenor from Oswego, New York, submitted two letters to
the Commission with public comments dated January 21, 2008, along with
an electronic transmission containing public comments dated January 27,
2008. The public comments are addressed by the NRC's safety evaluation
dated July 28, 2008.
Pursuant to 10 CFR 50.80(a), 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 as
supplemented and other information before the Commission, and relying
upon the representations and agreements in the application as
supplemented, the NRC staff concludes that the proposed indirect
transfer of control of the licenses held by ENIP2 and ENIP3 to Enexus,
as described herein, will not affect the qualifications of ENIP2 and
ENIP3 as holders of the IP2 and IP3 licenses, respectively. The
indirect transfer of control of the licenses is otherwise consistent
with applicable provisions of law, regulations, and orders issued by
the NRC. Furthermore, the NRC staff concludes that the proposed
corporate restructuring involving new intermediate and ultimate parent
companies over ENO, as described herein, will not affect the
qualifications of ENO as holder of the IP2 and IP3 licenses. The
indirect transfer of control of the licenses as held by ENO, to the
extent affected by the proposed restructuring, is otherwise consistent
with applicable provisions of law, regulations, and orders issued by
the Commission.
The NRC staff concludes that the conversion of Entergy Nuclear
Operations, Inc. to EquaGen Nuclear LLC would not constitute a direct
transfer of the licenses to the extent held by ENO. Therefore, no
consent to the proposed conversion is necessary.
The findings set forth above are supported by the NRC's safety
evaluation dated July 28, 2008.
III.
Accordingly, pursuant to Sections 161b, 161i, 161o, and 184 of the
Atomic Energy Act of 1954, as amended, 42 U.S.C. 2201(b), 2201(i),
2201(o), and 2234; and 10 CFR 50.80, it is hereby ordered that the
application regarding the indirect license transfers discussed above
related to the proposed corporate restructuring and establishment of
Enexus is approved, subject to the following conditions:
1. ENIP2 and ENIP3 shall enter into the $700 million Support
Agreement with Enexus Energy Corporation as described in the
application, no later than the time the proposed transactions and
indirect license transfer occurs. ENIP2 and ENIP3 shall take no action
to cause Enexus Energy Corporation, or its successors and assigns, to
void, cancel, or modify the Support Agreement or cause it to fail to
perform, or impair its performance under the Support Agreement, without
prior written consent of the NRC. The Support Agreement may not be
amended or modified without 30 days prior written notice to the
Director of the Office of Nuclear Reactor Regulation or his designee.
An executed copy of the Support Agreement shall be submitted to the NRC
no later than 30 days after the completion of the proposed transactions
and the indirect license transfer. ENIP2 and ENIP3 shall inform the NRC
in writing anytime it draws upon the Support Agreement.
2. The ten separate support guarantees from various Entergy
subsidiaries, which total $315 million, including the support
guarantees relating to IP2 and IP3, may be revoked when, and
conditioned upon, implementation of the new $700 million Support
Agreement at the time the proposed restructuring and indirect license
transfer are completed.
3. Should the proposed corporate restructuring and establishment of
Enexus not be completed within one year from the date of this Order,
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 application
dated July 30, 2007, as supplemented by letters dated October 31, and
December 5, 2007, and
[[Page 45255]]
January 24, March 17, April 22, and May 2, 2008, and the NRC's safety
evaluation dated July 28, 2008, 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 28th day of July 2008.
For the Nuclear Regulatory Commission.
Timothy J. McGinty,
Acting Director, Division of Operating Reactor Licensing, Office of
Nuclear Reactor Regulation.
[FR Doc. E8-17780 Filed 8-1-08; 8:45 am]
BILLING CODE 7590-01-P
