[Federal Register Volume 62, Number 247 (Wednesday, December 24, 1997)]
[Notices]
[Page 67415]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 97-33548]
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NUCLEAR REGULATORY COMMISSION
[Docket Nos. 50-272 and 50-311]
Atlantic City Electric Company Delmarva Power and Light Company
(Salem Nuclear Generating Station, Units 1 and 2); Order Approving
Application Regarding Merger Agreement Between Atlantic Energy, Inc.
(Parent of Atlantic City Electric Company) and Delmarva Power and Light
Company
I
Atlantic City Electric Company (ACE) and Delmarva Power and Light
Company (DP&L) are co-holders of Facility Operating Licenses Nos. DPR-
70 and DPR-75, along with Public Service Electric and Gas Company
(PSE&G) and Philadelphia Electric Company [also known as PECO Energy
Company], issued by the U.S. Nuclear Regulatory Commission (NRC or
Commission) pursuant to Part 50 of Title 10 of the Code of Federal
Regulations (10 CFR Part 50), for operation of the Salem Nuclear
Generating Station, Units 1 and 2 (Salem). Under the licenses, PSE&G is
authorized to possess, use, and operate the facilities, and ACE, DP&L,
and Philadelphia Electric Company are authorized to possess the
facilities. Salem is located in Salem County, New Jersey.
II
By application filed by ACE and DP&L under cover of a letter dated
April 30, 1997, from John H. O'Neill, Jr., of Shaw, Pittman, Potts &
Trowbridge, attorney for ACE and DP&L, supplemented by letter dated
November 7, 1997, ACE and DP&L requested the Commission's approval,
pursuant to 10 CFR 50.80, of the indirect transfer of the licenses, to
the extent held by ACE and DP&L, that would result from the
consummation of a merger agreement between Atlantic Energy, Inc.
(parent of ACE), and DP&L. Under the merger agreement, Atlantic Energy,
Inc. and DP&L would form a new holding company, Conectiv, Inc., under
which ACE and DP&L would become wholly owned subsidiaries. No direct
transfer of the licenses would occur. PSE&G and Philadelphia Electric
Company are not involved in the merger.
A Notice of Consideration of Approval of Application Regarding
Proposed Corporate Restructuring was published in the Federal Register
on December 8, 1997 (62 FR 64600), and an Environmental Assessment and
Finding of No Significant Impact was published in the Federal Register
on December 8, 1997 (62 FR 64602).
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 in the letter and application of April 30, 1997, and
supplement dated November 7, 1997, the NRC staff has determined that
the proposed merger of Atlantic Energy, Inc. and DP&L will not affect
the qualifications of ACE and DP&L as holders of the licenses, and that
the transfer of control of the licenses for Salem, to the extent
effected by the proposed merger, is otherwise consistent with
applicable provisions of law, regulations, and orders issued by the
Commission, subject to the conditions stated herein. These findings are
supported by a safety evaluation dated December 18, 1997.
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
Commission approves the application regarding the proposed merger of
Atlantic Energy, Inc. and DP&L subject to the following conditions: (1)
ACE 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 ACE 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 ACE's
consolidated net utility plant, as recorded on ACE's books of account;
(2) DP&L 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 DP&L 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 DP&L's
consolidated net utility plant, as recorded on DP&L's books of account;
and (3) should the merger of Atlantic Energy, Inc. and DP&L, as
described herein, not be completed by December 31, 1998, this Order
shall become null and void, provided, however, on application and for
good cause shown, such date is extended.
This Order is effective upon issuance.
IV
By January 23, 1998, any person adversely affected by this Order
may file a request for a hearing with respect to issuance of the Order.
Any person requesting a hearing shall set forth with particularity how
that interest is adversely affected by this Order and shall address the
criteria set forth in 10 CFR 2.714(d).
If a hearing is to be held, the Commission will issue an order
designating the time and place of such hearing.
The issue to be considered at any such hearing shall be whether
this Order should be sustained.
Any request for a hearing must be filed with the Secretary of the
Commission, U.S. Nuclear Regulatory Commission, Washington, DC 20555-
0001, Attention: Rulemakings and Adjudications Staff, or may be
delivered to the Commission's Public Document Room, The Gelman
Building, 2120 L Street, NW., Washington, D.C. by the above date.
Copies should be also sent to the Office of the General Counsel and to
the Director, Office of Nuclear Reactor Regulation, U.S. Nuclear
Regulatory Commission, Washington, DC 20555-0001, and to John H.
O'Neill, Jr., Shaw, Pittman, Potts & Trowbridge, 2300 N Street, NW.,
Washington, DC, 20037, attorney for ACE and DP&L.
For further details with respect to this action, see the
application filed by ACE and DP&L under cover of a letter dated April
30, 1997, from John H. O'Neill, Jr., of Shaw, Pittman, Potts &
Trowbridge, as supplemented by a letter dated November 7, 1997, and the
safety evaluation dated December 18, 1997, 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 Salem Free Public Library, 112 West
Broadway, Salem, NJ.
Dated at Rockville, Maryland, this 18th day of December 1997.
For the Nuclear Regulatory Commission.
Samuel J. Collins,
Director Office of Nuclear Reactor Regulation.
[FR Doc. 97-33548 Filed 12-23-97; 8:45 am]
BILLING CODE 7590-01-P