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[Federal Register Volume 65, Number 200 (Monday, October 16, 2000)]
[Notices]
[Page 61199]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 00-26479]

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NUCLEAR REGULATORY COMMISSION

[Docket Nos. 50-254, 50-265]

In the Matter of Commonwealth Edison Company (Quad Cities Nuclear 
Power Station, Units 1 and 2); Order Approving Application Regarding 
Proposed Corporate Restructuring

I

    Commonwealth Edison Company (ComEd, the licensee) owns 75 percent 
of the Quad Cities Nuclear Power Station, Units 1 and 2 ( the facility) 
and is the licensed operator of both stations. MidAmerican Energy 
Company (MidAmerican) owns the remaining interest. Facility Operating 
Licenses Nos. DPR-29 and DPR-30 authorize ComEd, acting for itself and 
as agent for MidAmerican to possess, use, and operate the facility. The 
facility is located at ComEd's site in Rock Island County, Illinois.

II

    By application dated July 7, 2000, ComEd requested approval of the 
proposed indirect transfer of the facility operating licenses to the 
extent now held by ComEd to Exelon Corporation, to be formed in 
connection with the proposed merger of Unicom Corporation (Unicom), the 
parent of ComEd, and PECO Energy Company (PECO). Supplemental 
information was provided by submittals dated July 13 and September 1, 
2000. Hereinafter, the July 7, 2000, application and supplemental 
information will be referred to collectively as the ``application.''
    Under the proposed merger, ComEd will become a direct or indirect 
subsidiary of Exelon Corporation. The merger was previously the subject 
of an order dated August 3, 2000, by which the U. S. Nuclear Regulatory 
Commission approved the transfer of the Quad Cities licenses, to the 
extent now held by ComEd, to Exelon Generation Company, LLC (EGC). EGC 
will be formed in connection with the merger as an indirect subsidiary 
of Exelon Corporation to acquire the generating assets of PECO and 
ComEd. The August 3, 2000, order effectively allows ComEd's Quad Cities 
assets to be transferred to EGC. According to the application here, the 
transfer of these assets may be delayed beyond the closing of the 
merger. During this interim period, Exelon Corporation would be the 
direct parent of ComEd as ComEd continues to hold its interest in the 
Quad Cities and other generating assets pending the receipt of 
necessary approvals to allow the generating assets to be transferred to 
EGC. Specifically, ComEd would continue to hold a partial ownership 
interest in Quad Cities, Units 1 and 2, and would continue to be the 
sole operator of Quad Cities, Units 1 and 2. The application does not 
involve any change with respect to the non-operating ownership interest 
held by MidAmerican.
    By a separate application dated July 7, 2000, PECO requested 
approval of the indirect transfer of the facility operating licenses 
that it holds to Exelon Corporation, which would occur under 
circumstances similar to the above for ComEd. That application is being 
addressed separately.
    Approval of the indirect transfer of the facility operating 
licenses was requested by ComEd pursuant to 10 CFR 50.80. Notice of the 
request for approval and an opportunity for a hearing was published in 
the Federal Register on August 31, 2000 (65 FR 53040). The Commission 
received no comments or requests for hearing pursuant to such notice.
    Under 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 shall give its consent in writing. Upon 
review of the information in the application by ComEd, and other 
information before the Commission, the NRC staff has determined that 
the proposed corporate restructuring under which Exelon Corporation 
will become the parent of ComEd will not affect the qualifications of 
ComEd as holder of the licenses described above, and that the indirect 
transfer of the licenses, to the extent effected by the proposed 
corporate restructuring, is otherwise consistent with applicable 
provisions of law, regulations, and orders issued by the Commission, 
subject to the conditions set forth below.
    The findings set forth above, are supported by a safety evaluation 
dated October 5, 2000.

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 
application regarding the indirect license transfers related to the 
proposed corporate restructuring is approved, subject to the following 
conditions:
    (1) ComEd 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 
ComEd 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 ten percent 
(10%) of ComEd's consolidated net utility plant, as recorded on ComEd's 
books of account, provided, however, this condition shall apply only 
for so long as ComEd holds a license issued pursuant to 10 CFR Part 50.
    (2) Should the proposed merger and restructuring not be completed 
by October 5, 2001, this Order shall become null and void, provided, 
however, upon written application and for good cause shown, such date 
may in writing be extended.
    This Order is effective upon issuance.
    For further details with respect to this Order, see the initial 
application dated July 7, 2000, and supplemental submittals dated July 
13 and September 1, 2000, and the safety evaluation dated October 5, 
2000, which are available for public inspection at the Commission's 
Public Document Room located at One White Flint North, 11555 Rockville 
Pike (first floor), Rockville, Maryland, and accessible electronically 
through the ADAMS Public Electronic Reading Room link at the NRC Web 
site (http://www.nrc.gov).

    Dated at Rockville, Maryland, this 5th day of October 2000.

    For the Nuclear Regulatory Commission.
Samuel J. Collins,
Director, Office of Nuclear Reactor Regulation.
[FR Doc. 00-26479 Filed 10-13-00; 8:45 am]
BILLING CODE 7590-01-P
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