[Federal Register Volume 65, Number 105 (Wednesday, May 31, 2000)]
[Notices]
[Pages 34740-34741]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 00-13517]


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NUCLEAR REGULATORY COMMISSION

[Docket No. 50-302]


In the Matter of Florida Power Corporation (Crystal River Unit 
No. 3); Order Approving Application Regarding Proposed Acquisition by 
CP&L Holdings, Inc. of Florida Progress Corporation

I

    Florida Power Corporation (FPC) is the majority owner and a holder 
of

[[Page 34741]]

Facility Operating License No. DPR-72 for Crystal River Unit 3 (CR-3), 
which was issued December 3, 1976. FPC owns a 91.7806% interest in CR-
3, with the remaining interest held by nine minority owners. FPC is the 
licensed operator of CR-3.

II

    Pursuant to Section 184 of the Atomic Energy Act of 1954, as 
amended, and 10 CFR 50.80, FPC filed an application dated January 31, 
2000, requesting approval of the indirect transfer of control of FPC's 
interest in the CR-3 operating license that will occur under a proposed 
share exchange transaction between Florida Progress Corporation 
(Progress), the parent of FPC, and CP&L Holdings, Inc. (Holdings). 
Holdings is being formed by Carolina Power and Light Company (CP&L) as 
part of an internal CP&L reorganization. Upon consummation of the share 
exchange transaction, under which Holdings will acquire all of the 
outstanding shares of Progress, Progress will become a wholly owned 
subsidiary of Holdings. FPC, which will remain a wholly owned 
subsidiary of Progress, will also become an indirect subsidiary of 
Holdings upon completion of the acquisition of Progress by Holdings. 
FPC will retain its existing ownership interest in and the license for 
CR-3 and remain the licensed operator of CR-3 after the share exchange 
transaction. No physical changes to the facility or operational changes 
are being proposed in the application. Additional information 
concerning this indirect transfer is contained in a letter from CP&L to 
the U.S. Nuclear Regulatory Commission (Commission) dated February 14, 
2000, and in a letter from FPC to the Commission dated March 28, 2000. 
Notice of the application and an opportunity for hearing was published 
in the Federal Register on March 17, 2000 (65 FR 14631). No hearing 
requests were filed.
    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 
submitted by FPC in its application, and the other information before 
the Commission, the NRC staff has determined that the proposed 
acquisition of Progress by Holdings through the proposed share exchange 
transaction will not affect the qualifications of FPC as a holder of 
the license referenced above, and that the indirect transfer of the 
license, to the extent effected by the acquisition, 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 May 22, 2000.

III

    Accordingly, pursuant to Sections 161b, 161i, 161o, and 184 of the 
Atomic Energy Act of 1954, as amended, 42 U.S.C. 2201(b), 2201(i), 
2201(o) and 2234; and 10 CFR 50.80, It is hereby ordered that the 
application regarding the subject acquisition is approved, subject to 
the following conditions:
    (a) FPC 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 FPC to 
its existing or proposed direct or indirect 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 FPC's consolidated net utility plant, as 
recorded on FPC's book of accounts,
    (b) Should the acquisition of Progress by Holdings not be completed 
by June 1, 2001, this Order shall become null and void, provided, 
however, on 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 initial 
application dated January 31, 2000, additional information contained in 
a letter from CP&L to the Commission dated February 14, 2000, a letter 
from FPC to the Commission dated March 28, 2000, and the Safety 
Evaluation dated May 23, 2000, which are available for public 
inspection at the Commission's Public Document Room, the Gelman 
Building, 2120 L Street, NW., Washington, DC, and accessible 
electronically through the ADAMS Public Electronic Reading Room link at 
the NRC Web site (http://www.nrc.gov).

    For the Nuclear Regulatory Commission.

    Dated at Rockville, Maryland, this 22nd day of May 2000.
Roy P. Zimmerman,
Acting Director, Office of Nuclear Reactor Regulation.
[FR Doc. 00-13517 Filed 5-30-00; 8:45 am]
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