Nine Mile Point Nuclear Station, LLC; Exelon Generation Company, LLC (Nine Mile Point Nuclear Station, Units 1 and 2); Order Approving Direct Transfer of Licenses and Conforming Amendments, 18322-18324 [2014-07244]

Agencies

• NUCLEAR REGULATORY COMMISSION

[Federal Register Volume 79, Number 62 (Tuesday, April 1, 2014)]
[Notices]
[Pages 18322-18324]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2014-07244]


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NUCLEAR REGULATORY COMMISSION

[NRC-2013-0252; Docket Nos. 50-220, 50-410; License Nos. DPR-63, NPF-
69]


Nine Mile Point Nuclear Station, LLC; Exelon Generation Company, 
LLC (Nine Mile Point Nuclear Station, Units 1 and 2); Order Approving 
Direct Transfer of Licenses and Conforming Amendments

I

    Nine Mile Point Nuclear Power Station, LLC (Nine Mile Point, LLC or 
the licensee) is the holder of Renewed Facility Operating License No. 
DPR-63, which authorizes the possession, use, and operation of Nine 
Mile Point Nuclear Station, Unit 1 (Nine Mile Point 1), including an 
Independent Spent Fuel Storage Installation (ISFSI) with a general 
license. Nine Mile Point, LLC is also the 82 percent owner and the 
licensed operator of Renewed Facility Operating License No. NPF-69, 
which authorizes the possession, use, and operation of Nine Mile Point 
Nuclear Station, Unit 2 (Nine Mile Point 2). Long Island Power 
Authority owns the remaining 18 percent of Nine Mile Point 2. Nine Mile 
Point 1 and 2 (the facility) is located in Oswego County, New York.

II

    By application dated August 6, 2013, as supplemented by letters and 
emails dated August 14, 2013, September 23 and 26, 2013, December 17, 
2013, January 9, 2014, and February 5, 10, 14, and 21, 2014 (together, 
the application), Constellation Energy Nuclear Group, LLC (CENG) 
requested on behalf of itself, its subsidiary, Nine Mile Point, LLC, 
and Exelon Generation Company, LLC (Exelon Generation) (together, the 
applicants), that the U.S. Nuclear Regulatory Commission (NRC) approve 
the proposed direct transfer of operating authority of the facility to 
Exelon Generation. The applicants also requested approval of conforming 
license amendments that would reflect the proposed transfer of 
operating authority to Exelon Generation. Prior to the transfer, Exelon 
Generation was an intermediate 50.01 percent parent company of CENG, 
which is the parent company owner of Nine Mile Point, LLC. After 
completion of the proposed transfer, Exelon Generation would remain an 
intermediate parent company and also become the co-licensee of Nine 
Mile Point, LLC and the operator of Nine Mile Point 1 and 2. Exelon 
Generation will assume direct licensed responsibility for the operation 
of the facility and its ISFSI, but the ownership will not be affected. 
There will be no physical changes to the facility and no adverse 
changes in day-to-day operations.
    Approval of the direct transfer of the renewed facility operating 
licenses and the conforming amendments was requested by the applicants 
pursuant to Sections 50.80 and 50.90 of Title 10 of the Code of Federal 
Regulations (10 CFR). A notice entitled, ``Consideration of Approval of 
Transfer of Renewed Facility Operating Licenses, Materials Licenses, 
and Conforming Amendments Containing Sensitive Unclassified Non-
Safeguards Information,'' was published in the Federal Register on 
December 26, 2013 (78 FR 78411). No comments or hearing requests were 
received.
    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 NRC shall give its consent in 
writing. Upon review of the information in the application, and

[[Page 18323]]

other information before the Commission, the NRC staff has determined 
that Exelon Generation is qualified to acquire and hold the operating 
authority under the license previously held by the licensee, and that 
the transfer of the license, as proposed in the application, is 
otherwise consistent with the applicable provisions of law, 
regulations, and orders issued by the Commission, pursuant thereto, 
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 conforming 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 conforming 
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 conforming 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 the NRC staff's 
safety evaluation dated the same day as this Order.

III

    Accordingly, pursuant to Sections 161b, 161i, 161o, and 184 of the 
Act, 42 U.S.C. Sections 2201(b), 2201(i), 2201(o), and 2234; and 10 CFR 
50.80, it is hereby ordered that the direct license transfer of the 
operating authority of the licenses from the licensee to Exelon 
Generation, as described herein, is approved, subject to the following 
conditions:
    1. The existing E.D.F. International S.A.S. Support Agreement of 
approximately $145 million, dated November 6, 2009, 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. Nine Mile Point, 
LLC, CENG, or Exelon Generation shall not take any action to cause 
E.D.F. International S.A.S., or its successors and assigns, to void, 
cancel, or materially modify the E.D.F. International S.A.S. Support 
Agreement or cause it to fail to perform, or impair its performance 
under the E.D.F. International S.A.S. Support Agreement, without the 
prior written consent of the NRC. Exelon Generation shall inform the 
NRC in writing no later than 14 days after any funds are provided to or 
for the CENG subsidiary licensee under the E.D.F. International S.A.S. 
Support Agreement.
    2. Exelon Corporation shall, no later than the time the license 
transfers occur, enter into a Support Agreement of approximately $245 
million with the licensee. The Exelon Corporation Support Agreement 
shall supersede the Support Agreement provided by Exelon Generation, 
dated March 12, 2012, in all respects and shall be consistent with the 
representations contained in the August 6, 2013 transfer application. 
Nine Mile Point, LLC, CENG, or Exelon Generation shall not take any 
action to cause Exelon Corporation, or its successors and assigns, to 
void, cancel, or materially modify the Exelon Corporation Support 
Agreement or cause it to fail to perform, or impair its performance 
under the Exelon Corporation Support Agreement, without the prior 
written consent of the NRC. The Exelon Corporation 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 Exelon Corporation Support Agreement 
shall be submitted to the NRC no later than 30 days after the 
completion of the proposed transaction and license transfers. Exelon 
Generation shall inform the NRC in writing no later than 14 days after 
any funds are provided to or for the licensee under the Exelon 
Corporation Support Agreement.
    3. Exelon Corporation shall, no later than the time the license 
transfers occur, provide a parent guarantee in the amount of $165 
million to ensure a source of funds for the facility in the event that 
the existing cash pool between the licensee and CENG is insufficient to 
cover operating costs. The existing CENG cash pool arrangement shall be 
consistent with the representations contained in the 2009 Transfer 
Application dated January 22, 2009 (ADAMS Accession No. ML090290101). 
Nine Mile Point, LLC, CENG, or Exelon Generation shall not take any 
action to cause Exelon Corporation, or its successors and assigns, to 
void, cancel or materially modify the parent guarantee or cause it to 
fail to perform, or impair its performance under the parent guarantee 
without the prior written consent of the NRC.
    4. Within 14 days of the license transfers, Exelon Generation shall 
submit to the NRC the Nuclear Operating Services Agreement reflecting 
the terms set forth in the application dated August 6, 2013. Section 
7.1 of the Nuclear Operating Services Agreement may not be modified in 
any material respect related to financial arrangements that would 
adversely impact the ability of the licensee to fund safety-related 
activities authorized by the license without the prior written consent 
of the Director of the Office of Nuclear Reactor Regulation.
    5. Within 10 days of the license transfers, Exelon Generation shall 
submit to the NRC the amended CENG Operating Agreement reflecting the 
terms set forth in the application dated August 6, 2013. The amended 
and restated Operating Agreement may not be modified in any material 
respect concerning decisionmaking authority over safety, security and 
reliability without the prior written consent of the Director of the 
Office of Nuclear Reactor Regulation.
    6. At least half the members of the CENG Board of Directors must be 
U.S. citizens.
    7. The CENG Chief Executive Officer, Chief Nuclear Officer, and 
Chairman of the CENG Board of Directors must be U.S. citizens. These 
individuals shall have the responsibility and exclusive authority to 
ensure and shall ensure that the business and activities of CENG with 
respect to the facility's license are at all times conducted in a 
manner consistent with the public health and safety and common defense 
and security of the United States.
    8. CENG will retain its Nuclear Advisory Committee (NAC) composed 
of U.S. citizens who are not officers, directors, or employees of CENG, 
EDF Inc., Constellation Nuclear, LLC, or CE Nuclear, LLC. The NAC will 
report to, and provide transparency to, the NRC and other U.S. 
governmental agencies regarding foreign ownership and control of 
nuclear operations.
    9. The NAC shall prepare an annual report regarding the status of 
foreign ownership, control, or domination of the licensed activities of 
power reactors under the control, in whole or part, of CENG. The NAC 
report shall be submitted to the NRC within 30 days of completion, or 
by January 31 of each year (whichever occurs first). No action shall be 
taken by CENG or any entity to cause Constellation Nuclear, LLC, Exelon 
Generation, or their parent companies, subsidiaries or successors to 
modify the NAC report before submittal to the NRC. The NAC report shall 
be made available to the public, with the

[[Page 18324]]

potential exception of information that meets the requirements for 
withholding such information from public disclosure under the 
regulations of 10 CFR 2.390, ``Public Inspections, Exemptions, Requests 
for Withholding.''
    10. Before completion of the direct transfer of Nine Mile Point 1 
and 2 licenses, Exelon Generation shall provide the Director of the 
Office of Nuclear Reactor Regulation satisfactory documentary evidence 
that the licensees have obtained the appropriate amount of primary and 
secondary insurance, and have complied with the requirements of 10 CFR 
Part 140 of the Commission's regulations.
    It is further ordered that consistent with 10 CFR 2.1315(b), the 
license amendments that make changes, as indicated in Enclosure 2 to 
the cover letter forwarding this Order, to conform the licenses to 
reflect the subject direct transfer, are approved. The license 
amendments shall be issued and made effective at the time the proposed 
direct transfer action is consummated.
    It is further ordered that after receipt of all required regulatory 
approvals for the proposed direct transfer action, Exelon Generation 
shall inform the Director of the Office of Nuclear Reactor Regulation 
in writing of such receipt no later than 2 business day prior to the 
date of the closing of the direct transfer. Should the proposed direct 
transfer not be completed within one year of this Order's date of 
issuance, 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 
and the non-proprietary safety evaluation dated the same date as this 
Order, which are available for public inspection at the Commission's 
Public Document Room (PDR), located at One White Flint North, Public 
File Room O-1 F21, 11555 Rockville Pike (first floor), Rockville, 
Maryland. Publicly available documents created or received at the NRC 
are accessible electronically through Agencywide Documents Access and 
Management System (ADAMS) in the NRC Library at 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's PDR reference staff by telephone at 1-800-397-4209, 
or 301-415-4737, or by email to pdr.resource@nrc.gov.

    Dated at Rockville, Maryland, this 25 day of March 2014.

    For The Nuclear Regulatory Commission.
Eric J. Leeds,
 Director, Office of Nuclear Reactor Regulation.
[FR Doc. 2014-07244 Filed 3-31-14; 8:45 am]
BILLING CODE 7590-01-P