[Federal Register Volume 65, Number 82 (Thursday, April 27, 2000)]
[Notices]
[Pages 24721-24722]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 00-10504]


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NUCLEAR REGULATORY COMMISSION

[Docket Nos. 50-272 and 50-311]


Public Service Electric and Gas Company, Philadelphia Electric 
Company (PECO Energy Company, Delmarva Power and Light Company, 
Atlantic City Electric Company (Salem Nuclear Generating Station, Units 
1 and 2); Order Approving Transfer of Licenses and Conforming 
Amendments

I

    Public Service Electric and Gas Company (PSE&G), Philadelphia 
Electric Company (PECO Energy Company), Delmarva Power and Light 
Company (DP&L), and Atlantic City Electric Company (ACE) are the joint 
owners of the Salem Nuclear Generating Station, Unit Nos. 1 and 2 
(Salem), located in Salem County, New Jersey. They hold Facility 
Operating Licenses Nos. DPR-70 and DPR-75, issued by the U.S. Nuclear 
Regulatory Commission (NRC or Commission) on August 13, 1976, and May 
20, 1981, respectively, pursuant to part 50 of title 10 of the Code of 
Federal Regulations (10 CFR Part 50). Under these licenses, PSE&G 
(currently owner of 42.59 percent of each Salem unit) is authorized to 
possess, use, and operate the Salem units. The current, non-operating 
combined ownership interests of DP&L and ACE are 14.82 percent of each 
Salem unit.

II

    By application dated December 20, 1999, as supplemented February 11 
and February 25, 2000 (collectively referred to herein as the 
application), PSE&G, PSEG Nuclear Limited Liability Company (PSEG 
Nuclear), DP&L, and ACE requested approval by the NRC of the transfer 
to PSEG Nuclear of the Salem licenses, to the extent held by DP&L and 
ACE, in conjunction with the proposed acquisition of DP&L's and ACE's 
combined ownership interests in the Salem units by PSEG Nuclear. 
According to the application, depending upon the timing of regulatory 
approvals sought by PSEG Nuclear concerning other transfer matters not 
involving DP&L and ACE, as an interim step the interests of DP&L and 
ACE to be acquired by PSEG Nuclear may be transferred first to PSEG 
Power LLC, the parent of PSEG Nuclear, or to PSE&G, and then to PSEG 
Nuclear. No physical changes or significant changes in the day-to-day 
management and operations of the Salem units are proposed in the 
application.
    PSE&G also requested approval of conforming license amendments to 
reflect the transfers. The amendments would replace references to DP&L 
and ACE with PSEG Nuclear.
    Approval of the transfers and conforming license amendments was 
requested pursuant to 10 CFR 50.80 and 50.90. A notice of the 
application for transfer approval as well as the request for amendments 
and an opportunity for a hearing was published in the Federal Register 
on February 18, 2000 (65 FR 8452). No hearing requests were filed.
    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 gives its consent in 
writing. After reviewing the information submitted in the application 
and other information before the Commission, the NRC staff has 
determined that PSEG Nuclear is qualified to hold the license for each 
Salem unit to the same extent the licenses are now held by DP&L and 
ACE, and that the transfer of the licenses, as previously described 
herein, is otherwise consistent with applicable provisions of law, 
regulations, and orders issued by the Commission, subject to the 
conditions described herein. 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 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 license 
amendments will be in accordance with 10 CFR Part 51 of the 
Commission's regulations and all applicable requirements have been 
satisfied. These findings are supported by a Safety Evaluation dated 
April 21, 2000.

III

    Accordingly, pursuant to sections 161b, 161i, and 184 of the Atomic 
Energy Act of 1954, as amended, 42 U.S.C. 2201(b), 2201(i), and 2234; 
and 10 CFR 50.80, It Is Hereby Ordered that

[[Page 24722]]

the license transfers from DP&L and ACE to PSEG Nuclear referenced 
above are approved, subject to the following conditions:
    1. Any interim transaction described in the application whereby 
DP&L's and ACE's interests in Salem Units 1 and 2 are first acquired by 
PSE&G, PSEG Power, or any other entity prior to the acquisition by PSEG 
Nuclear of such interest, shall not result in the acquisition, 
possession, or use of Salem Units 1 and 2, or any activity for which a 
license is required under the Atomic Energy Act of 1954, as amended, by 
any entity other than PSEG Nuclear, unless such result is expressly 
approved by a separate order upon further application. This Order shall 
not be deemed to provide consent under 10 CFR 50.80 to the transfer of 
the licenses for Salem Units 1 and 2 with respect to DP&L's and ACE's 
interests in Salem Units 1 and 2 to any entity other than PSEG Nuclear.
    2. ACE and DP&L will transfer on or about the closing date to the 
respective PSEG Nuclear decommissioning trusts a minimum of $41.9 
million for Salem Unit 1, and $31.0 million for Salem Unit 2.
    3. The decommissioning trust agreement(s) for Salem Units 1 and 2 
shall provide that:
    a. The use of assets in both the qualified and non-qualified funds 
shall be limited to expenses related to decommissioning of the unit as 
defined by the NRC in its regulations and issuances, and as provided in 
the unit's license and any amendments thereto. However, upon completion 
of decommissioning, as defined above, the assets may be used for any 
purpose authorized by law.
    b. Investments in the securities or other obligations of PSE&G or 
affiliates thereof, or their successors or assigns, shall be 
prohibited. In addition, except for investments tied to market indexes 
or other non-nuclear sector mutual funds, investments in any entity 
owning one or more nuclear power plants shall be prohibited. ]
    c. No disbursements or payments from the trust shall be made by the 
trustee until the trustee has first given the NRC 30 days notice of the 
payment. In addition, no disbursements or payments from the trust shall 
be made if the trustee receives prior written notice of objection from 
the Director, Office of Nuclear Reactor Regulation.
    d. The trust agreement shall not be modified in any material 
respect without prior written notification to the Director, Office of 
Nuclear Reactor Regulation.
    e. The trustee, investment advisor, or anyone else directing the 
investments made in the trust shall adhere to a ``prudent investor'' 
standard, as specified in 18 CFR 35.32(3) of the Federal Energy 
Regulatory Commission's regulations.
    4. After receipt of all required regulatory approvals of the 
subject transfer, PSE&G shall inform the Director, Office of Nuclear 
Reactor Regulation, in writing of such receipt, and of the date of 
closing of the transfer no later than 7 business days prior to the date 
of closing. Should the transfer not be completed by December 31, 2000, 
this Order shall become null and void, provided, however, on 
application and for good cause shown, such date may be extended.
    It Is Further Ordered That, consistent with 10 CFR 2.1315(b), 
license amendments that make changes, as indicated in Enclosure 2 to 
the cover letter forwarding this Order, to conform each Salem license 
to reflect the subject license transfers are approved. Such amendments 
shall be issued and made effective at the time the proposed license 
transfers are completed.
    This Order is effective upon issuance.
    For further details with respect to this Order, see the initial 
application dated December 20, 1999, and supplements dated February 11 
and February 25, 2000, which are available for public inspection at the 
Commission's Public Document Room, the Gelman Building, 2120 L Street, 
NW., Washington, DC. Publically available documents will be accessible 
electronically from the ADAMS Public Library component on the NRC Web 
site http://www.nrc.gov (the Electronic Reading Room).

    Dated at Rockville, Maryland, this 21st day of April 2000.

    For the Nuclear Regulatory Commission.
Samuel J. Collins,
Director, Office of Nuclear Reactor Regulation.
[FR Doc. 00-10504 Filed 4-26-00; 8:45 am]
BILLING CODE 7590-01-P