[Federal Register Volume 63, Number 11 (Friday, January 16, 1998)]
[Notices]
[Pages 2701-2702]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 98-1108]


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NUCLEAR REGULATORY COMMISSION

[Docket No. 50-410]


New York State Electric & Gas Corporation, Nine Mile Point 
Nuclear Station, Unit 2; Environmental Assessment and Finding of No 
Significant Impact

    The U.S. Nuclear Regulatory Commission (the Commission) is 
considering the issuance of an Order approving, under 10 CFR 50.80, an 
application regarding a proposed indirect transfer of control of 
ownership and possessory rights held by New York State Electric & Gas 
Corporation (NYSEG) under the operating license for Nine Mile Point 
Nuclear Station, Unit No. 2 (NMP2). The indirect transfer would be to a 
holding company, not yet named, to be created over NYSEG in accordance 
with an executed ``Agreement Concerning the Competitive Rate and 
Restructuring Plan of New York State Electric & Gas Corporation.'' 
NYSEG is licensed by the Commission to own and possess an 18-percent 
interest in NMP2, located in the town of Scriba, Oswego County, New 
York.

Environmental Assessment

Identification of the Proposed Action

    The proposed action would consent to the indirect transfer of 
control of the license to the extent effected by NYSEG becoming a 
subsidiary of the holding company in connection with a proposed plan of 
restructuring. Under the restructuring plan, the outstanding shares of 
NYSEG's common stock (other than shares for which appraisal rights are 
properly exercised) are to be exchanged for common stock of the holding 
company on a share-for-share basis, such that the holding company will 
own all of the outstanding common stock of NYSEG. NYSEG would divest 
its interest in coal-fired power plants, but would continue to be an 
``electric utility'' as defined in 10 CFR 50.2, engaged in the 
transmission, distribution and, in the case of NMP2 and hydroelectric 
facilities, the generation of electricity. NYSEG would retain its 
ownership interest in NMP2 and continue to be a licensee of NMP2. No 
direct transfer of the operating license or ownership interests in the 
station would result from the proposed restructuring. The restructuring 
of NYSEG would not involve any change to either the management 
organization or technical personnel of Niagara Mohawk Power Corporation 
(NMPC), which is responsible for operating and maintaining NMP2 and is 
not involved in the restructuring of NYSEG. The proposed action is in 
accordance with NYSEG's application dated September 18, 1997, as 
supplemented October 20 and 27, 1997.

The Need for the Proposed Action

    The proposed action is required to enable NYSEG to restructure as 
described above.

Environmental Impacts of the Proposed Action

    The Commission has completed its evaluation of the proposed 
corporate restructuring and concludes that there will be no physical or 
operational changes to NMP2 as a result. The corporate restructuring 
will not affect the qualifications or organizational affiliation of the 
personnel who operate

[[Page 2702]]

and maintain the facility, as NMPC will continue to be responsible for 
the maintenance and operation of NMP2 and is not involved in the 
restructuring of NYSEG.
    The change will not increase the probability or consequences of 
accidents, no changes are being made in the types of any effluents that 
may be released offsite, and there is no significant increase in the 
allowable individual or cumulative occupational radiation exposure. 
Accordingly, the Commission concludes that there are no significant 
radiological environmental impacts associated with the proposed action.
    With regard to potential nonradiological impacts, the restructuring 
would not affect nonradiological plant effluents and would have no 
other environmental impact. Accordingly, the Commission concludes that 
there are no significant nonradiological environmental impacts 
associated with the proposed action.

Alternatives to the Proposed Action

    Since the Commission has concluded there are no significant 
environmental effects that would result from the proposed action, any 
alternatives with equal or greater environmental impact need not be 
evaluated.
    As an alternative to the proposed action, the staff considered 
denial of the proposed action. Denial of the application would result 
in no change in current environmental impacts. The environmental 
impacts of the proposed action and the alternative action are similar.

Alternative Use of Resources

    This action does not involve the use of any resources not 
previously considered in the Final Environmental Statements Related to 
the Operation of Nine Mile Point Nuclear Station, Unit No. 2, (NUREG-
1085) dated May 1985.

Agencies and Persons Contacted

    In accordance with its stated policy, on January 12, 1998, the 
staff consulted with the New York State official, Mr. Jack Spath, 
regarding the environmental impact of the proposed action. The State 
official had no comments.

Finding of No Significant Impact

    Based upon the environmental assessment, the Commission concludes 
that the proposed action will not have a significant effect on the 
quality of the human environment. Accordingly, the Commission has 
determined not to prepare an environmental impact statement for the 
proposed action.
    For further details with respect to the proposed action, see 
NYSEG's application dated September 18, as supplemented by letters 
dated October 20 and 27, 1997, and January 6, 1998, 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 Reference and Documents Department, 
Penfield Library, State University of New York, Oswego, New York 13126.

    Dated at Rockville, Maryland, this 12th day of January 1998.

    For the Nuclear Regulatory Commission.
S. Singh Bajwa,
Director Project Directorate I-1, Division of Reactor Projects--I/II, 
Office of Nuclear Reactor Regulation.
[FR Doc. 98-1108 Filed 1-15-98; 8:45 am]
BILLING CODE 7590-01-P