[Federal Register Volume 65, Number 200 (Monday, October 16, 2000)]
[Notices]
[Page 61204]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 00-26484]


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

NUCLEAR REGULATORY COMMISSION

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


In the Matter of PECO Energy Company (Salem Nuclear Generating 
Station, Units 1 and 2) Order Approving Application Regarding Proposed 
Corporate Restructuring

I

    PECO Energy Company (PECO) owns 42.59 percent of Salem Nuclear 
Generating Station, Units 1 and 2 (the facility) and in connection 
therewith is a co-holder of Facility Operating Licenses Nos. DPR-70 and 
DPR-75, which authorize possession, use, and operation of the facility. 
PSEG Nuclear LLC, another co-owner of the facility, is the licensed 
operator. The facility is located in Salem County, New Jersey.

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 transfer of the Salem 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 Salem 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 Salem 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 hold a partial ownership 
interest in Salem, Units 1 and 2. PSEG Nuclear LLC would continue to be 
the sole operator of Salem, Units 1 and 2. The application does not 
involve any change with respect to the remaining ownership interests in 
the facility held by PSEG Nuclear LLC, Delmarva Power and Light 
Company, and Atlantic City Electric Company.
    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 53046). 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 a co-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. 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 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 
(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. 00-26484 Filed 10-13-00; 8:45 am]
BILLING CODE 7590-01-P