[Federal Register Volume 66, Number 111 (Friday, June 8, 2001)]
[Notices]
[Pages 30956-30957]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 01-14495]


=======================================================================
-----------------------------------------------------------------------

NUCLEAR REGULATORY COMMISSION

[Docket No. 50-482]


Kansas City Power & Light Company (Wolf Creek Generating 
Station); Order Approving Application Regarding Proposed Corporate 
Restructuring

I

    Kansas City Power & Light Company (KCPL) holds a 47 percent 
ownership interest in Wolf Creek Generating Station (WCGS) and in 
connection therewith is a holder of Facility Operating License No. NPF-
42. The facility is located in Coffey County, Kansas. The other co-
owner licensees for WCGS are Kansas Gas & Electric Company (KGE) (with 
a 47 percent share of WCGS), and Kansas Electric Power Cooperative, 
Inc. (KEPCo) (with a 6 percent share). Wolf Creek Nuclear Operating 
Corporation (WCNOC) is the licensed operator of WCGS, and KCPL also 
owns a 47 percent interest in WCNOC, with KGE and KEPCo owning 47 
percent and 6 percent interests in WCNOC, respectively. KCPL, as well 
as KGE and KEPCo, hold possession-only licenses.

II

    Pursuant to section 184 of the Atomic Energy Act of 1954, as 
amended, and 10 CFR 50.80, KCPL filed an application dated February 20, 
2001, which was supplemented by submittals dated February 27, March 5, 
March 8, March 28, and May 4, 2001, from counsel for KCPL, requesting 
approval of the indirect transfer of the WCGS license, to the extent 
such would result from the proposed restructuring of KCPL. As stated in 
the application, the proposed restructuring encompasses the formation 
by KCPL of a new holding company as yet unnamed (``HoldingCo''). Upon 
the proposed restructuring, KCPL will cease to be publicly-traded and 
become a wholly-owned subsidiary of HoldingCo, but will retain 
ownership of its regulated electric power generation, transmission, and 
distribution assets, including its interests in WCGS and WCNOC. No 
direct transfer of the license to HoldingCo or otherwise is being 
proposed. WCNOC would remain as the managing agent for the joint owner 
licensees (KCPL, KGE, and KEPCo) of the facility and would continue to 
have exclusive responsibility for the management, operation, and 
maintenance of WCGS as the non-owner operator licensee. The application 
does not propose a change in the rights, obligations, or interests of 
the licensees of WCGS. In addition, no physical changes to WCGS or 
operational changes are being proposed.
    KCPL stated that it and HoldingCo will be able to respond more 
effectively to increased competition in the energy industry and pursue 
pending unregulated electric generation ventures as a result of the new 
corporate structure.
    Notice of the application and an opportunity for hearing was 
published in the Federal Register on May 2, 2001 (66 FR 22019). No 
written comments or hearing requests were received.
    Under 10 CFR 50.80, no license shall be transferred, directly or 
indirectly, through transfer of control of the license, unless the 
Commission gives its consent in writing. Upon review of the information 
provided by KCPL in its application, the supplements thereto, and other 
information before the Commission, the NRC staff has determined that 
the proposed restructuring will not affect the qualifications of KCPL 
or WCNOC as holders of the license referenced above and that the 
indirect transfer of the license, to the extent effected by the 
proposed restructuring of KCPL, is otherwise consistent with applicable 
provisions of law, regulations, and orders issued by the Commission, 
subject to the conditions set forth herein. These findings are 
supported by a safety evaluation dated June 1, 2001.

III

    Accordingly, pursuant to sections 161b, 161i, 161o, and 184 of the 
Atomic Energy Act of 1954, as amended, 42 USC Secs. 2201(b), 2201(i), 
2201(o), and 2234; and 10 CFR 50.80, it is hereby ordered that the 
application regarding the proposed restructuring of KCPL and indirect 
license transfer is approved, subject to the following conditions:
    (1) KCPL 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 KCPL 
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 10 percent (10%) of KCPL's 
consolidated net utility plant as recorded on KCPL's books of account.
    (2) Should the proposed restructuring of KCPL not be completed by 
June 1, 2002, this Order shall become null and void, provided, however, 
upon application and for good cause shown, such date may be extended.
This Order is effective upon issuance.
    For further details with respect to this action, see the license 
transfer application filed by KCPL dated February 20, 2001, and the 
supplemental submittals dated February 27, March 5, March 8, March 28, 
and May 4, 2001, from counsel for KCPL, and the safety evaluation dated 
June 1, 2001, 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

[[Page 30957]]

Room link at the NRC Web site
(http://www.nrc.gov).

    Dated at Rockville, Maryland, this first day of June 2001.

    For the Nuclear Regulatory Commission.
Jon R. Johnson,
Acting Director, Office of Nuclear Reactor Regulation.
[FR Doc. 01-14495 Filed 6-7-01; 8:45 am]
BILLING CODE 7590-01-P