[Federal Register Volume 62, Number 172 (Friday, September 5, 1997)]
[Notices]
[Pages 47067-47068]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 97-23596]


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NUCLEAR REGULATORY COMMISSION

[Docket Nos. 50-206, 50-361 and 50-362]


San Diego Gas and Electric Company (San Onofre Nuclear Generating 
Station, Units 1, 2 and 3); Order Approving Application Regarding the 
Corporate Restructuring of Enova Corporation, Parent of San Diego Gas 
and Electric Company, by Establishment of a Holding Company With 
Pacific Enterprises

I

    San Diego Gas and Electric Company (SDG&E) is a co-owner of San 
Onofre Nuclear Generating Station (SONGS), Units 1, 2 and 3, along with 
Southern California Edison (SCE), The City of Riverside, California 
(Riverside), and The City of Anaheim, California (Anaheim). SDG&E, SCE, 
Riverside and Anaheim are co-holders of Possession Only License No. 
DPR-13, and Facility Operating License Nos. NPF-10, and NPF-15, issued 
by the U.S. Nuclear Regulatory Commission (the Commission) pursuant to 
Part 50 of Title 10 of the Code of Federal Regulations (10 CFR Part 50) 
on October 23, 1992, February 16, 1982, and November 15, 1982, 
respectively. Under these licenses, SDG&E, SCE, Riverside, and Anaheim 
have the authority to possess the San Onofre Nuclear Generating 
Station, Units 1, 2 and 3, while SCE is authorized to operate Units 2 
and 3. SONGS is located in San Diego County, California.

II

    By letter dated December 2, 1996, SDG&E, through its counsel 
Richard A. Meserve of Covington & Burling, informed the Commission that 
its parent company, Enova Corporation was engaging in a corporate 
restructuring plan with Pacific Enterprises that will result in the 
creation of a holding company under the name Mineral Energy Company of 
which Enova and Pacific Enterprises would become

[[Page 47068]]

subsidiaries. SDG&E would continue to be a subsidiary of Enova. Under 
the restructuring, there will be no change in the capital structure of 
SDG&E. SDG&E will continue to hold the SONGS licenses to the same 
extent as presently held; there will be no direct transfer of the SONGS 
licenses. The December 2, 1996, letter requested the Commission's 
approval pursuant to 10 CFR 50.80, to the extent necessary, in 
connection with the proposed restructuring. Notice of this request for 
approval was published in the Federal Register on July 1, 1997 (62 FR 
35532).
    Under 10 CFR 50.80, no license 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 submitted in the letter of December 2, 1996, and other 
information before the Commission, the NRC staff has determined that 
the restructuring of Enova, parent company of SDG&E, will not affect 
the qualifications of SDG&E as co-holder of the licenses, and that the 
transfer of control of the licenses for SONGS, to the extent effected 
by the restructuring of Enova, is otherwise consistent with applicable 
provisions of law, regulations, and orders issued by the Commission, 
subject to the conditions set forth herein. These findings are 
supported by a Safety Evaluation dated August 29, 1997.

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 
Commission approves the application concerning the proposed 
restructuring of Enova, parent company of SDG&E, subject to the 
following conditions: (1) SDG&E 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 SDG&E 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 SDG&E's consolidated net utility plant, as recorded on SDG&E's 
books of account; and (2) should the restructuring of Enova as 
described herein not be completed by August 31, 1998, this Order shall 
become null and void, provided, however, on application and for good 
cause shown, such date may be extended.
    This Order is effective upon issuance.

IV

    By October 6, 1997, any person adversely affected by this Order may 
file a request for a hearing with respect to issuance of the Order. Any 
person requesting a hearing shall set forth with particularity how that 
interest is adversely affected by this Order and shall address the 
criteria set forth in 10 CFR 2.714(d).
    If a hearing is to be held, the Commission will issue an order 
designating the time and place of such hearing.
    The issue to be considered at any such hearing shall be whether 
this Order should be sustained.
    Any request for a hearing must be filed with the Secretary of the 
Commission, U.S. Nuclear Regulatory Commission, Washington, D.C. 20555, 
Attention: Rulemaking and Adjudications Staff, or may be delivered to 
the Commission's Public Document Room, the Gelman Building, 2120 L 
Street, NW., Washington, D.C. by the above date. Copies should be also 
sent to the Office of the General Counsel, and to the Director, Office 
of Nuclear Reactor Regulation, U.S. Nuclear Regulatory Commission, 
Washington, D.C. 20555, and to Richard A. Meserve, Covington & Burling, 
1201 Pennsylvania Avenue, NW., Post Office Box 7566, Washington, D.C. 
20044-7566, attorney for SDG&E.
    For further details with respect to this action, see the December 
2, 1996 letter application, which is available for public inspection at 
the Commission's Public Document Room, the Gelman Building, 2120 L 
Street, NW., Washington, D.C., and at the local public document room 
located at the Main Library, University of California, Irvine, 
California 92718.

    Dated at Rockville, Maryland, this 29th day of August 1997.

    For the Nuclear Regulatory Commission.
Samuel J. Collins,
Director, Office of Nuclear Reactor Regulation.
[FR Doc. 97-23596 Filed 9-4-97; 8:45 am]
BILLING CODE 7590-01-P