Reactor License Transfers

Background

Mergers, acquisitions and reorganizations are a regular part of the electric power utility 

sector. All those financial events can prompt requests for the NRC to transfer nuclear power reactor 

operating licenses. 

Since the NRC approved the sale of the Three Mile Island Unit 1 reactor in 1999, the NRC 

has reviewed more than 115 license transfer applications. A list of current license transfer 

applications can be found on the NRC website.

Regulations Governing License Transfers and Related Regulations

NRC approval is required before a license transfer

can occur. The agency’s regulations on license transfers, in 

Title 10 to the Code of Federal Regulations, and Section 184 

of the Atomic Energy Act, include:

•10 CFR Part 2, Subpart M - Public Notification, 

Availability of Documents and Records, Hearing Requests 

and Procedures for Hearings on License Transfer 

Application

•10 CFR 50.33 - Contents of applications; general 

information

•10 CFR 50.38 - Ineligibility of certain applicants

• 10 CFR 50.40 - Common standard

• 10 CFR 50.75 - Reporting and recordkeeping for decommissioning planning

• 10 CFR 50.80 - Transfer of licenses

• 10 CFR Part 51 - Environmental Protection Regulations for Domestic Licensing and Related 

Regulatory Functions

• 10 CFR Part 140 - Financial Protection Requirements and Indemnity Agreements

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Types of License Transfers and Breadth of Review

License transfers can be direct or indirect. A direct transfer could involve the sale of a 

nuclear power plant that establishes a new power plant owner, thus resulting in a new power plant 

licensee. An indirect transfer could result from forming a new parent holding company or subsidiary 

having an ownership interest in a licensee, while the nuclear power plant licensee owner and/or 

operator remains unchanged. Direct transfers are less common, with the remaining indirect transfers

generally occurring as a result of a merger or acquisition at high levels within or among 

corporations. 

Technical Qualifications

NRC reviews of license transfer requests examine both the technical and financial 

qualifications of the proposed owner. The technical review is based on agency regulations, the NRC 

Standard Review Plan for "Management and Technical Support Organization," and the American 

National Standards Institute publication, “Selection and Training of Nuclear Power Plant 

Personnel.” The NRC’s review focuses on determining whether the proposed owner has the 

technical expertise needed to safely operate the plant. This is generally not an issue in reviewing 

indirect transfers, where the licensee remains the same. For direct transfers, particularly when the 

operator changes, the scope of the review will depend on how much the existing plant personnel and 

organization will change.

Financial Qualifications and Decommissioning Funding Assurance

The NRC evaluates a proposed owner’s finances with regards to the ability to operate and 

decommission the nuclear plant(s). The NRC uses 10 CFR Part 50.33(f) to guide its financial 

review. If the proposed owner meets the "electric utility" definition in the NRC's regulations, no 

further review of financial qualifications for operations is generally required. In other cases the 

NRC evaluates revenue sources and the plant’s projected 5-year operating costs. This helps the 

NRC determine whether the proposed owner can obtain the funds to operate the plant safely.

The NRC uses 10 CFR Part 50.75 to determine if the proposed owner has access to funds to 

decommission the nuclear plant(s) after permanent shutdown. NRC regulations provide several 

ways that owners can show they will be able to pay the full decommissioning cost.

Foreign Ownership

The NRC reviews license transfer requests to ensure there is no foreign control of safetyrelated activities. The Atomic Energy Act, and NRC regulations under 10 CFR Part 50.38, prohibit 

a proposed licensee from being “owned, controlled, or dominated” by a foreign individual or entity. 

For example, the 1999 transfer of Three Mile Island Unit 1 license to AmerGen Energy Company

involved 50 percent ownership of AmerGen by British Energy, plc, a foreign company. As a result, 

the NRC required AmerGen to have a "negation action plan" where the other 50 percent, U.S.-based 

PECO, Inc., retained control over safety-related decisions, which also had to be made by U.S. 

citizens. Exelon has since become the sole owner of AmerGen.
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Antitrust

The Atomic Energy Act does not require antitrust reviews of license transfer applications 

once a plant begins operating.

Insurance and Indemnity

The Atomic Energy Act also requires reactor owners to have insurance and indemnity to 

cover off-site claims of personal injury or property damage. The NRC reviews license transfer 

applications to make sure that protection is in place. The NRC also ensures that proposed owners 

have on-site property damage insurance to help cover reactor cleanup costs if an accident occurs.

NRC Guidance Documents

The NRC has developed the following guidance for license transfers:

• Antitrust Standard Review Plan (SRP), NUREG-1574, Rev. 2, December 2007;

• Power Reactor Licensee Financial Qualifications and Decommissioning Funding Assurance,

NUREG-1577, Rev. 1, March 1999,

• Management and Technical Support SRP, NUREG-0800, March 2007,

• Integrated SRP on All Aspects of License Transfers, NUREG/BR-0276, April 2000,

• Changes Concerning Foreign Ownership, Control, or Domination of Nuclear Reactor 

Licensees, Regulatory Information Summary (RIS)-00-001, February 1, 2000, and

• Criteria for Triggering a Review Under 10 CFR 50.80 for Non-Owner Operator Service 

Companies, Regulatory Information Summary (RIS)-01-006, February 15, 2001.

January 2020