[Federal Register Volume 62, Number 247 (Wednesday, December 24, 1997)]
[Notices]
[Page 67415]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 97-33548]


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NUCLEAR REGULATORY COMMISSION

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


Atlantic City Electric Company Delmarva Power and Light Company 
(Salem Nuclear Generating Station, Units 1 and 2); Order Approving 
Application Regarding Merger Agreement Between Atlantic Energy, Inc. 
(Parent of Atlantic City Electric Company) and Delmarva Power and Light 
Company

I

    Atlantic City Electric Company (ACE) and Delmarva Power and Light 
Company (DP&L) are co-holders of Facility Operating Licenses Nos. DPR-
70 and DPR-75, along with Public Service Electric and Gas Company 
(PSE&G) and Philadelphia Electric Company [also known as PECO Energy 
Company], issued by the U.S. Nuclear Regulatory Commission (NRC or 
Commission) pursuant to Part 50 of Title 10 of the Code of Federal 
Regulations (10 CFR Part 50), for operation of the Salem Nuclear 
Generating Station, Units 1 and 2 (Salem). Under the licenses, PSE&G is 
authorized to possess, use, and operate the facilities, and ACE, DP&L, 
and Philadelphia Electric Company are authorized to possess the 
facilities. Salem is located in Salem County, New Jersey.

II

    By application filed by ACE and DP&L under cover of a letter dated 
April 30, 1997, from John H. O'Neill, Jr., of Shaw, Pittman, Potts & 
Trowbridge, attorney for ACE and DP&L, supplemented by letter dated 
November 7, 1997, ACE and DP&L requested the Commission's approval, 
pursuant to 10 CFR 50.80, of the indirect transfer of the licenses, to 
the extent held by ACE and DP&L, that would result from the 
consummation of a merger agreement between Atlantic Energy, Inc. 
(parent of ACE), and DP&L. Under the merger agreement, Atlantic Energy, 
Inc. and DP&L would form a new holding company, Conectiv, Inc., under 
which ACE and DP&L would become wholly owned subsidiaries. No direct 
transfer of the licenses would occur. PSE&G and Philadelphia Electric 
Company are not involved in the merger.
    A Notice of Consideration of Approval of Application Regarding 
Proposed Corporate Restructuring was published in the Federal Register 
on December 8, 1997 (62 FR 64600), and an Environmental Assessment and 
Finding of No Significant Impact was published in the Federal Register 
on December 8, 1997 (62 FR 64602).
    Under 10 CFR 50.80, no license shall be transferred, directly or 
indirectly, through transfer of control of the license, unless the 
Commission gives its consent in writing. Upon review of the information 
submitted in the letter and application of April 30, 1997, and 
supplement dated November 7, 1997, the NRC staff has determined that 
the proposed merger of Atlantic Energy, Inc. and DP&L will not affect 
the qualifications of ACE and DP&L as holders of the licenses, and that 
the transfer of control of the licenses for Salem, to the extent 
effected by the proposed merger, is otherwise consistent with 
applicable provisions of law, regulations, and orders issued by the 
Commission, subject to the conditions stated herein. These findings are 
supported by a safety evaluation dated December 18, 1997.

III

    Accordingly, pursuant to Sections 161b, 161i, 161o, and 184 of the 
Atomic Energy Act of 1954, as amended, 42 USC Secs. 2201(b), 2201(i), 
2201(o), and 2234, and 10 CFR 50.80, It is hereby ordered that the 
Commission approves the application regarding the proposed merger of 
Atlantic Energy, Inc. and DP&L subject to the following conditions: (1) 
ACE 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 ACE to 
its proposed parent or to any other affiliated company, facilities for 
the production, transmission, or distribution of electric energy having 
a depreciated book value exceeding 10 percent (10%) of ACE's 
consolidated net utility plant, as recorded on ACE's books of account; 
(2) DP&L 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 DP&L to 
its proposed parent or to any other affiliated company, facilities for 
the production, transmission, or distribution of electric energy having 
a depreciated book value exceeding 10 percent (10%) of DP&L's 
consolidated net utility plant, as recorded on DP&L's books of account; 
and (3) should the merger of Atlantic Energy, Inc. and DP&L, as 
described herein, not be completed by December 31, 1998, this Order 
shall become null and void, provided, however, on application and for 
good cause shown, such date is extended.
    This Order is effective upon issuance.

IV

    By January 23, 1998, 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, DC 20555-
0001, Attention: Rulemakings 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, DC 20555-0001, and to John H. 
O'Neill, Jr., Shaw, Pittman, Potts & Trowbridge, 2300 N Street, NW., 
Washington, DC, 20037, attorney for ACE and DP&L.
    For further details with respect to this action, see the 
application filed by ACE and DP&L under cover of a letter dated April 
30, 1997, from John H. O'Neill, Jr., of Shaw, Pittman, Potts & 
Trowbridge, as supplemented by a letter dated November 7, 1997, and the 
safety evaluation dated December 18, 1997, which are available for 
public inspection at the Commission's Public Document Room, The Gelman 
Building, 2120 L Street, NW., Washington, DC, and at the local public 
document room located at the Salem Free Public Library, 112 West 
Broadway, Salem, NJ.

    Dated at Rockville, Maryland, this 18th day of December 1997.

    For the Nuclear Regulatory Commission.
Samuel J. Collins,
Director Office of Nuclear Reactor Regulation.
[FR Doc. 97-33548 Filed 12-23-97; 8:45 am]
BILLING CODE 7590-01-P