```

[Federal Register Volume 65, Number 200 (Monday, October 16, 2000)]
[Notices]
[Pages 61203-61204]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 00-26483]

-----------------------------------------------------------------------

NUCLEAR REGULATORY COMMISSION

[Docket Nos. 50-171, 50-277, 50-278]

In the Matter of PECO Energy Company (Peach Bottom Atomic Power 
Station, Units 1, 2 and 3) Order Approving Application Regarding 
Proposed Corporate Restructuring

I

    PECO Energy Company (PECO, the licensee) is the holder of Facility 
Operating License No. DPR-12, which authorizes possession and 
maintenance, but not operation of Peach Bottom Atomic Power Station, 
Unit 1, and is a co-holder of Facility Operating Licenses Nos. DPR-44, 
and DPR-56, which authorize the possession, use, and operation of the 
Peach Bottom Atomic Power Station, Units 2 and 3. PECO is the licensed 
operator of Units 2 and 3. All three units (the facility) are located 
at the licensee's site in York County, Pennsylvania.

II

    By application dated July 7, 2000, PECO requested approval of the 
proposed indirect transfer of the facility operating licenses to the 
extent now held by PECO to Exelon Corporation, to be formed in 
connection with the proposed merger of Unicom Corporation (Unicom), the 
parent of Commonwealth Edison Company and 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, PECO 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 direct transfer of the Peach Bottom licenses, 
to the extent held by PECO, 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 Commonwealth Edison Company. The August 3, 2000, order 
effectively allows PECO's Peach Bottom 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 PECO as PECO continues 
to hold the Peach Bottom and other generating assets pending the 
receipt of necessary approvals to allow the generating assets to be 
transferred to EGC. Specifically, PECO would continue to be the sole 
owner of Peach Bottom, Unit 1, and would continue to hold a partial 
ownership interest in Peach Bottom, Units 2 and 3. PECO would continue 
to be authorized to maintain Peach Bottom, Unit 1, and would continue 
to be the sole operator of Peach Bottom, Units 2 and 3. The application 
does not involve any change with respect to the other co-holders of the 
licenses for Peach Bottom, Units 2 and 3, PSEG Nuclear LLC, Delmarva 
Power and Light Company, and Atlantic City Electric Company, which hold 
ownership interests in these units.
    By a separate application dated July 7, 2000, Commonwealth Edison 
Company 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 PECO. That 
application is being addressed separately.
    Approval of the indirect transfer of the facility operating 
licenses was requested by PECO 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 53044). 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 PECO, 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 PECO will not affect the qualifications of 
PECO 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 USC Secs. 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) PECO shall provide the Director of the Office of Nuclear 
Reactor Regulation and the Director of the Office of Nuclear 
Material Safety and Safeguards a copy of any application, at the 
time it is filed, to transfer (excluding grants of security 
interests or liens) from PECO 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 PECO's 
consolidated net utility plant, as recorded on PECO's books of 
account, provided, however, this condition shall apply only for so 
long as PECO 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, 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

[[Page 61204]]

(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. 00-26483 Filed 10-13-00; 8:45 am]
BILLING CODE 7590-01-P
```