[Federal Register Volume 63, Number 122 (Thursday, June 25, 1998)]
[Notices]
[Pages 34667-34668]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 98-16909]


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NUCLEAR REGULATORY COMMISSION

[Docket No. 50-410]


Central Hudson Gas & Electric 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 transfer of control of possessory rights held 
by Central Hudson Gas & Electric Corporation (Applicant) under the 
operating license for Nine Mile Point Nuclear Station, Unit No. 2 
(NMP2). The transfer would be to a holding company, not yet named, to 
be created over Applicant in accordance with a New York State Public 
Service Commission order, issued and effective February 19, 1998 (Case 
96-E-0909), and related documents entitled ``Amended and Restated 
Settlement Agreement'' dated January 2, 1998, and ``Modifications to 
Amended and Restated Settlement Agreement'' dated February 26, 1998 
(see Exhibits G-G2 in the application). Applicant is licensed by the 
Commission to own and possess a 9 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 transfer of control of the 
license to the extent effected by Applicant becoming a subsidiary of 
the newly formed holding company in connection with a proposed plan of 
restructuring. Under the restructuring plan, the outstanding shares of 
Applicant's common stock are to be exchanged on a share-for-share basis 
for common stock of the holding company, such that the holding company 
will own all of the outstanding common stock of Applicant. In addition, 
the holding

[[Page 34668]]

company will own, directly or indirectly, the stock of any current non-
utility subsidiaries of applicant except that Applicant will continue 
to own one unregulated subsidiary. Under this restructuring, Applicant 
will sell at auction its fossil-fueled electric generation facilities 
at its Danskammer Steam Generating Plant and its partial interest in 
the Roseton Electric Generation Plant (hereafter, collectively referred 
to as ``Generation Assets''). However, Applicant will continue to be an 
``electric utility'' as defined in 10 CFR 50.2 engaged in the 
transmission, distribution, and generation of electricity at NMP2, 
combustion turbine facilities, hydroelectric facilities, and (until 
structurally separated or divested), the Generation Assets. Applicant 
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 will result from the proposed 
restructuring. The transaction would not involve any change to either 
the management organization or technical personnel of Niagara Mohawk 
Power Corporation, which is responsible for operating and maintaining 
NMP2 and is not involved in the restructuring of Applicant. The 
proposed action is in accordance with Applicant's application dated 
April 8, 1998, as supplemented April 22, 1998.

The Need for the Proposed Action

    The proposed action is required to enable Applicant 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 it is an administrative 
action unrelated to plant operation; therefore, there will be no 
resulting physical or operational changes to NMP2. The corporate 
restructuring will not affect the qualifications or organizational 
affiliation of the personnel who operate 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 proposed action 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 occupational or offsite 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 nonradiological environmental impact.
    Accordingly, the Commission concludes that there are no significant 
environmental impacts associated with the proposed action.

Alternatives to the Proposed Action

    Since the Commission has concluded there are no significant 
environmental impacts 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 June 19, 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 
Applicant's application dated April 8, as supplemented by letter dated 
April 22, 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 19th day of June 1998.

    For the Nuclear Regulatory Commission.
Guy S. Vissing,
Acting Director, Project Directorate I-1, Division of Reactor 
Projects--I/II, Office of Nuclear Reactor Regulation.
[FR Doc. 98-16909 Filed 6-24-98; 8:45 am]
BILLING CODE 7590-01-P