[Federal Register Volume 65, Number 200 (Monday, October 16, 2000)]
[Notices]
[Pages 61195-61196]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 00-26474]


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NUCLEAR REGULATORY COMMISSION

Docket Nos. 50-295, 50-304


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

I

    Commonwealth Edison Company (ComEd, the licensee) is the holder of 
Facility Operating Licenses Nos. DPR-39 and DPR-48 for the Zion Nuclear 
Power Station, Units 1 and 2 (the facility). The facility was shut down 
permanently in February 1997. ComEd certified the permanent shutdown on 
February 13, 1998, and certified that all fuel had been removed from 
the reactor vessels on March 9, 1998. In accordance with 10 CFR 
50.82(a)(2), the facility operating licenses no longer authorize ComEd 
to operate the reactors or to load fuel in the reactor vessels. The 
facility is located at the licensee's site in Lake 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

[[Page 61196]]

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 Zion licenses 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 Zion 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 the Zion facility pending the receipt 
of necessary approvals to allow the facility to be transferred to EGC. 
Specifically, ComEd would continue to be the sole owner of, and be 
authorized to maintain Zion, Units 1 and 2.
    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 53041). 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 merger, 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 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. 00-26474 Filed 10-13-00; 8:45 am]
BILLING CODE 7590-01-P