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[Federal Register Volume 62, Number 56 (Monday, March 24, 1997)]
[Notices]
[Pages 13902-13903]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 97-7332]

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NUCLEAR REGULATORY COMMISSION
[Docket No. 50-461]

Illinois Power Company, Soyland Power Cooperative (Clinton Power 
Station, Unit No. 1); Order Approving Transfer of License for Clinton 
Power Station, Unit No. 1

I

    Illinois Power Company (IP) owns 86.79 percent of Clinton Power 
Station, Unit No. 1 (CPS), a single-unit nuclear power plant. Soyland 
Power Cooperative (Soyland) owns the remaining 13.21-percent interest 
in the facility. IP and Soyland are governed by Facility Operating 
License No. NPF-62 issued by the U.S. Nuclear Regulatory Commission 
(the Commission) pursuant to Part 50 of Title 10 of the Code of Federal 
Regulations (10 CFR Part 50) on April 17, 1987. Under this license, 
only IP has the authority to operate CPS. The CPS facility is located 
in DeWitt County, Illinois.

II

    In an application originally submitted by letter dated October 17, 
1996, and then supplemented and modified by letter dated December 13, 
1996, IP requested NRC's consent to a proposed transfer of the 13.21-
percent share of CPS currently owned by Soyland to IP. Upon completion 
of the sale, IP will remain the plant operator and will become sole 
owner of CPS. IP is a wholly owned subsidiary of Illinova Corporation 
and will remain so after completion of the sale. The proposed action 
constitutes a transfer of the license for CPS to the extent it is held 
by Soyland, and is subject to the license transfer provisions of 10 CFR 
50.80.

III

    On the basis of the information provided in IP's application, the 
staff finds that IP is financially qualified to contribute 
appropriately to the operation and decommissioning of CPS. In its 
letter of December 13, 1996, IP indicated that it would assume 
responsibility for the external trust fund established by Soyland for 
its share of the ultimate decommissioning expenses of CPS. IP also 
would remain an ``electric utility'' as defined in 10 CFR 50.2, engaged 
in the generation, transmission, and distribution of electric energy 
for wholesale and retail sale, subject to the rate regulation of the 
Illinois Commerce Commission and the Federal Energy Regulatory 
Commission. Thus, pursuant to 10 CFR 50.33(f), IP is exempt from 
further financial qualifications review as an electric utility. 
However, since IP will become the sole entity responsible for operating 
and decommissioning expenses for the facility, the staff has concluded 
that approval of the application should be conditioned upon IP 
providing prior notice to the NRC of any asset transfer having a 
depreciated book value exceeding 10 percent of IP's consolidated net 
utility plant to its parent company or any affiliated company. Such a 
condition will help to ensure that IP will remain financially qualified 
to be the sole holder of the license.

IV

    The proposed transfer does not involve any transfer of operating 
authority, which IP already possesses. There will be no change in the 
management or technical qualifications of IP's nuclear organization as 
a result of the license transfer. On the basis of the continuity of 
IP's nuclear organization and management previously described, the 
staff finds that the proposed license transfer will not adversely 
affect IP's technical qualifications or the management of CPS and does 
not otherwise raise any technical qualifications issues.

V

    CPS underwent an antitrust review before issuance of the 
construction permit and antitrust license conditions were attached to 
the CPS operating license that still apply to IP. Thus, the application 
in this case does not involve a new owner or a licensee that has not 
undergone an antitrust review by the NRC. Under the Atomic Energy Act, 
no further review by the NRC is authorized.

VI.

    IP makes the following statements in its letter of December 13, 
1996: ``The shares of common stock of Illinova are publicly traded and 
widely held. IP and IPMI [Illinova Power Marketing, Inc.] are wholly 
owned subsidiaries of Illinova. The directors and officers of both 
these companies are U.S. citizens. Neither Illinova, IP, nor IPMI is 
owned, controlled, or dominated by any alien, foreign corporation, or 
foreign government.'' (IP letter, Attachment 2, p. 7.) The staff has no 
reason to believe otherwise.

[[Page 13903]]

VII

    After reviewing the information submitted in the letters of October 
17 and December 13, 1996, and other information before the Commission, 
and in consideration of the foregoing findings, the NRC staff has 
determined that IP is qualified to hold the license and that the 
transfer, subject to the conditions set forth herein, is otherwise 
consistent with applicable provisions of law, regulations, and orders 
issued by the Commission. Accordingly, pursuant to Sections 161b, 161i, 
161o, and 184 of the Atomic Energy Act of 1954, as amended; 42 U.S.C. 
sections 2201(b), 2201(i), 2201(o), and 2234; and 10 CFR 50.80, the 
Commission consents to the proposed transfer of the license described 
herein from Soyland to IP, subject to the following: (1) The issuance 
of approved amendments fully reflecting the transfer approved by this 
Order at the time such transfer is effected; (2) should the transfer 
not be completed by December 31, 1997, this Order shall become null and 
void, provided, however, on application and for good cause shown, such 
date may be extended; and (3) IP 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 IP to Illinova Corporation (its parent company) 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 IP's consolidated net utility 
plant.
    This Order is effective upon issuance.
    Pursuant to 10 CFR 51.21, 51.32, and 51.35, an environmental 
assessment and a finding of no significant impact have been prepared 
and published in the Federal Register on February 5, 1997 (62 FR 5495). 
On the basis of the environmental assessment, the Commission has 
determined that the issuance of this Order will not have a significant 
effect on the quality of the human environment.
    Notice of consideration of issuance of an order approving the 
transfer of the license and an opportunity for a hearing was published 
in the Federal Register on January 29, 1997 (62 FR 4337).
    For further details with respect to this action, see IP's letters 
requesting approval of the transfer of the license dated October 17 and 
December 13, 1996, 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 Vespasian Warner Public Library, 310 N. Quincy Street, Clinton, IL 
61727.

    Dated at Rockville, Maryland, this 13th day of March 1997.

    For the Nuclear Regulatory Commission.
Samuel J. Collins,
Director, Office of Nuclear Reactor Regulation.
[FR Doc. 97-7332 Filed 3-21-97; 8:45 am]
BILLING CODE 7590-01-P
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