December 27, 2000
Mr. James A. Hutton
Director-Licensing
PECO Energy Company
Nuclear Group Headquarters
Correspondence Control
P.O. Box 160
Kennett Square, PA 19348
SUBJECT: ORDER APPROVING THE TRANSFER OF LICENSES FOR PEACH
BOTTOM ATOMIC POWER STATION, UNITS 2 AND 3, TO THE EXTENT
CURRENTLY HELD BY ATLANTIC CITY ELECTRIC COMPANY AND
DELMARVA POWER AND LIGHT COMPANY, TO PECO ENERGY
COMPANY, EXELON GENERATION COMPANY LLC, AND PSEG
NUCLEAR LLC, AND CONFORMING AMENDMENTS (TAC NOS. MB0266
AND MB0267)
Dear Mr. Hutton:
The enclosed Order is being issued in response to your application dated
October 10, 2000. This application requested changes to the conditions of a
previous Order, issued by the U.S. Nuclear Regulatory Commission (NRC) on
April 21, 2000, an extension of the expiration date, and such other
approvals as may be necessary in light of the circumstances described in
the application. The enclosed Order consents to the transfer of the
licenses for the Peach Bottom Atomic Power Station, Units 2 and 3, to the
extent they are held by Atlantic City Electric Company and Delmarva Power
and Light Company, to PECO Energy Company as it presently exists as a
subsidiary of Exelon Corporation, to Exelon Generation Company, LLC, after
its formation as an indirect subsidiary of Exelon Corporation, and to PSEG
Nuclear LLC. The Order, which supersedes in part and supplements in part
the related Order dated April 21, 2000, also approves the enclosed
conforming license amendments to be issued and made effective when the
respective transfers are completed. The enclosed Order and the associated
documents may be examined, and/or copied for a fee, at the NRC's Public
Document Room, located at One White Flint North, 11555 Rockville Pike
(first floor), Rockville, MD, and will be accessible electronically through
the ADAMS Public Electronic Reading Room link at the NRC Web site
http://www.nrc.gov.
Also enclosed is our related safety evaluation. The Order has been
forwarded to the Office of the Federal Register for publication.
Sincerely,
/RA/
John P. Boska, Project Manager, Section 2
Project Directorate I
Division of Licensing Project Management
Office of Nuclear Reactor Regulation
Docket Nos. 50-277 and 50-278
Enclosures: 1. Order
2. Two Conforming Amendments to Licenses DPR-44 and DPR-56
3. Safety Evaluation
cc w/encls: See next page
Peach Bottom Atomic Power Station,
Units 2 and 3
cc:
J. W. Durham, Sr., Esquire Mr. James A. Hutton
Sr. V.P. & General Counsel Chief-Division of Nuclear Safety
PECO Energy Company PA Dept. of
2301 Market Street, S26-1 Environmental Resources
Philadelphia, PA 19101 P.O. Box 8469
Harrisburg, PA 17105-8469
PECO Energy Company
ATTN: Mr. J. Doering, Vice President Board of Supervisors
Peach Bottom Atomic Power Station Peach Bottom Township
1848 Lay Road R. D. #1
Delta, PA 17314 Delta, PA 17314
PECO Energy Company Public Service Commission of Maryland
ATTN: Regulatory Engineer, A4-5S Engineering Division
Peach Bottom Atomic Power Station Chief Engineer
1848 Lay Road 6 St. Paul Center
Delta, PA 17314 Baltimore, MD 21202-6806
Resident Inspector Mr. Richard McLean
U.S. Nuclear Regulatory Commission Power Plant and Environmental
Peach Bottom Atomic Power Station Review Division
P.O. Box 399 Department of Natural Resources
Delta, PA 17314 B-3, Tawes State Office Building
Annapolis, MD 21401
Regional Administrator, Region I
U.S. Nuclear Regulatory Commission Dr. Judith Johnsrud
475 Allendale Road National Energy Committee
King of Prussia, PA 19406 Sierra Club
433 Orlando Avenue
Mr. Roland Fletcher State College, PA 16803
Department of Environment
Radiological Health Program Manager-Financial Control & Co-Owner
2400 Broening Highway Affairs
Baltimore, MD 21224 Public Service Electric and Gas
Company
A. F. Kirby, III P.O. Box 236
External Operations - Nuclear Hancocks Bridge, NJ 08038-0236
Delmarva Power & Light Company
P.O. Box 231 Manager-Peach Bottom Licensing
Wilmington, DE 19899 PECO Energy Company
Nuclear Group Headquarters
PECO Energy Company Correspondence Control
Plant Manager P.O. Box 160
Peach Bottom Atomic Power Station Kennett Square, PA 19348
1848 Lay Road
Delta, PA 17314 Mr. Jeffrey A. Benjamin
Licensing - Vice President
Exelon Corporation
1400 Opus Place, Suite 900
Downers Grove, IL 60521
December 27, 2000
Mr. James A. Hutton
Director-Licensing
PECO Energy Company
Nuclear Group Headquarters
Correspondence Control
P.O. Box 160
Kennett Square, PA 19348
SUBJECT: ORDER APPROVING THE TRANSFER OF LICENSES FOR PEACH
BOTTOM ATOMIC POWER STATION, UNITS 2 AND 3, TO THE EXTENT
CURRENTLY HELD BY ATLANTIC CITY ELECTRIC COMPANY AND
DELMARVA POWER AND LIGHT COMPANY, TO PECO ENERGY
COMPANY, EXELON GENERATION COMPANY LLC, AND PSEG
NUCLEAR LLC, AND CONFORMING AMENDMENTS (TAC NOS. MB0266
AND MB0267)
Dear Mr. Hutton:
The enclosed Order is being issued in response to your application dated
October 10, 2000. This application requested changes to the conditions of a
previous Order, issued by the U.S. Nuclear Regulatory Commission (NRC) on
April 21, 2000, an extension of the expiration date, and such other
approvals as may be necessary in light of the circumstances described in
the application. The enclosed Order consents to the transfer of the
licenses for the Peach Bottom Atomic Power Station, Units 2 and 3, to the
extent they are held by Atlantic City Electric Company and Delmarva Power
and Light Company, to PECO Energy Company as it presently exists as a
subsidiary of Exelon Corporation, to Exelon Generation Company, LLC, after
its formation as an indirect subsidiary of Exelon Corporation, and to PSEG
Nuclear LLC. The Order, which supersedes in part and supplements in part
the related Order dated April 21, 2000, also approves the enclosed
conforming license amendments to be issued and made effective when the
respective transfers are completed. The enclosed Order and the associated
documents may be examined, and/or copied for a fee, at the NRC's Public
Document Room, located at One White Flint North, 11555 Rockville Pike
(first floor), Rockville, MD, and will be accessible electronically through
the ADAMS Public Electronic Reading Room link at the NRC Web site
http://www.nrc.gov.
Also enclosed is our related safety evaluation. The Order has been
forwarded to the Office of the Federal Register for publication.
Sincerely,
/RA/
John P. Boska, Project Manager, Section 2
Project Directorate I
Division of Licensing Project Management
Office of Nuclear Reactor Regulation
Docket Nos. 50-277 and 50-278
Enclosures: 1. Order
2. Two Conforming Amendments to Licenses DPR-44 and DPR-56
3. Safety Evaluation
cc w/encls: See next page
DISTRIBUTION
SHom VDricks SECY MDavis
PUBLIC MO'Brien (2) JShea JClifford
PDI-2 Reading JBoska CCowgill, RGN-I TMadden
SCollins/RZimmerman OGC CCarpenter
EAdensam (EGA1) GHill (4) ACRS
*See Previous Concurrence
OFFICE PDI-2/PM PDI-2/LA TECH ED RGEB/BC OGC
NAME JBoska MO'Brien PKleene* CCarpenter SHom
DATE 12/21/00 12/26/00 12/7/00 12/22/00 12/22/00
OFFICE PDI-2/SC PDI/D DLPM/D NRR/ADPT NRR/D
NAME JClifford EAdensam JZowlinski BSheron JSilber (acting)
DATE 12/26/00 12/22/00 12/22/00 12/26/00 12/26/00
OFFICIAL RECORD COPY
DOCUMENT NAME: C:\Peach Bottom order 12-18-00-.wpd
ACCESSION NO. ML003780925.7590-01-P
7590-01-P
UNITED STATES OF AMERICA
NUCLEAR REGULATORY COMMISSION
In the Matter of )
)
PECO ENERGY COMPANY )
) Docket Nos. 50-277 and 50-278
PSEG NUCLEAR LLC )
)
DELMARVA POWER AND LIGHT COMPANY )
)
ATLANTIC CITY ELECTRIC COMPANY )
)
(Peach Bottom Atomic Power Station, )
Units 2 and 3) )
ORDER APPROVING TRANSFER OF LICENSES
AND CONFORMING AMENDMENTS
I.
PECO Energy Company (PECO), PSEG Nuclear LLC, Delmarva Power and
Light Company (DP&L), and Atlantic City Electric Company (ACE) are the
joint owners of the Peach Bottom Atomic Power Station, Units 2 and 3 (Peach
Bottom), located in York County, Pennsylvania. They hold Facility Operating
Licenses Nos. DPR-44 and DPR-56 issued by the U.S. Nuclear Regulatory
Commission (NRC or Commission) on October 25, 1973, and July 2, 1974,
respectively, pursuant to Part 50 of Title 10 of the Code of Federal Regula
tions(10 CFR Part 50). Under these licenses, PECO (currently owner of 42.49
percent of each Peach Bottom unit) is authorized to possess, use, and
operate the Peach Bottom units. The current nonoperating ownership
interests of the other joint owners for each Peach Bottom unit are as
follows: PSEG Nuclear LLC, 42.49 percent; DP&L, 7.51 percent; and ACE, 7.51
percent.
II.
By an Order dated April 21, 2000, the NRC approved the transfer of
the subject Peach Bottom licenses from DP&L and ACE to PECO and PSEG
Nuclear LLC. Conforming license amendments were also approved. The April
21, 2000, Order was in response to an application dated December 21, 1999,
as supplemented February 11, March 2, and March 16, 2000, and was based in
part on the DP&L and ACE interests in the licenses and in the facility
being transferred simultaneously, as well as the accumulated
decommissioning funds of DP&L and ACE being transferred collectively to the
decommissioning trusts of PECO and PSEG Nuclear LLC. The April 21, 2000,
Order, with respect to the DP&L and ACE license transfers that were
proposed to PECO, was issued in the context of PECO then existing as a
stand-alone electric utility, and did not expressly approve the DP&L and
ACE license transfers to PECO as it now exists as a subsidiary of Exelon
Corporation. Further, the Order did not approve DP&L and ACE license
transfers to Exelon Generation Company LLC (EGC), which is to be formed as
an indirect subsidiary of Exelon Corporation. The NRC did, however, issue
Orders dated August 3, 2000, and October 5, 2000, that respectively
approved the direct transfer of the Peach Bottom licenses, to the extent
now held by PECO, to EGC, and the indirect transfer of the Peach Bottom
licenses, again to the extent now held by PECO, to Exelon Corporation
(which indirect transfer occurred on October 20, 2000, by reason of PECO
becoming at that time a wholly-owned subsidiary of Exelon Corporation).
By application dated October 10, 2000, PECO, PSEG Nuclear LLC, DP&L,
and ACE requested approvals as necessary to allow the Peach Bottom
licenses, to the extent now held by DP&L and ACE, to be transferred to PECO
(as a subsidiary of Exelon Corporation), to EGC (whether the transferor(s)
are DP&L, ACE, or PECO), and to PSEG Nuclear LLC, at two different times,
namely, the DP&L transfers first, and the ACE transfers second, if at all.
The October 10, 2000, application also requested that the NRC extend the
effectiveness of the April 21, 2000, Order to December 31, 2001. No
physical changes or changes in the management or operations of the Peach
Bottom units are proposed in the application. The application also
requested the approval of conforming license amendments to reflect the
license transfers that are the subject of the application. The proposed
amendments would delete references in the licenses to DP&L and ACE as
licensees, as each respective interest is transferred, and add EGC to the
licenses at the appropriate time.
Approval of the transfers encompassed by the October 10, 2000,
application and conforming license amendments was requested pursuant to 10
CFR 50.80 and 50.90. A notice of the license transfer application and the
conforming amendment request, and an opportunity for a hearing was
published in the Federal Registeron November 27, 2000 (65 FR 70740). No
hearing requests or written comments were filed.
Pursuant to 10 CFR 50.80, no license, or any right thereunder, shall
be transferred, directly or indirectly, through transfer of control of the
license, unless the Commission gives its consent in writing. After
reviewing the information submitted in the October 10, 2000, application,
the Orders referenced above dated April 21, August 3, and October 5, 2000,
and the underlying applications and safety evaluations regarding those
Orders, and other information before the Commission, the NRC staff has
determined that PSEG Nuclear LLC is qualified to hold, in addition to the
interests in the licenses it presently holds, (1) one-half of the interest
in the Peach Bottom licenses now held by DP&L, and (2) one-half of the
interest in the Peach Bottom licenses now held by ACE; that PECO, as it
presently exists as a subsidiary of Exelon Corporation, is qualified to
hold, in addition to the interests in the licenses it presently holds, (1)
one-half of the interest in the Peach Bottom licenses now held by DP&L, and
(2) one-half of the interest in the Peach Bottom licenses now held by ACE;
and that EGC is qualified to hold, in addition to the interests in the
licenses that it may hold by virtue of transfers from PECO previously and
separately approved by the August 3, 2000, Order, (1) one-half of the
interest in the Peach Bottom licenses now held by DP&L, which one-half
interest may be first trans ferred to PECO and then to EGC or may be
directly transferred to EGC from DP&L, and (2) one-half of the interest in
the Peach Bottom licenses now held by ACE, which one-half interest may be
first transferred to PECO and then to EGC or may be directly transferred to
EGC from ACE; and that each transfer of the licenses, as described, is
otherwise consistent with applicable provisions of law, regulations, and
orders issued by the Commission, subject to the conditions described
herein. The NRC staff has further found that the application for the
proposed license amendments complies with the standards and requirements of
the Atomic Energy Act of 1954, as amended (the Act), and the Commission's
rules and regula tions set forth in 10 CFR Chapter I; the facility will
operate in conformity with the application, the provisions of the Act, and
the rules and regulations of the Commission; there is reason able assurance
that the activities authorized by the proposed license amendments can be
conducted without endangering the health and safety of the public and that
such activities will be conducted in compliance with the Commission's
regulations; the issuance of the proposed license amendments will not be
inimical to the common defense and security or to the health and safety of
the public; and the issuance of the proposed license amendments will be in
accordance with 10 CFR Part 51 of the Commission's regulations and all
applicable requirements have been satisfied. These findings are supported
by a safety evaluation dated December 27, 2000.
III.
Accordingly, pursuant to Sections 161b, 161i, and 184 of the Atomic
Energy Act of 1954, as amended, 42 U.S.C. ss.ss. 2201(b), 2201(i), and
2234; and 10 CFR 50.80, IT IS HEREBY ORDERED that each license transfer
described in Section II of this Order is approved, subject to the following
conditions:
1. DP&L shall transfer to the PECO or EGC decommissioning trusts
for Peach Bottom, as appropriate to the transferee, and to the
PSEG Nuclear LLC decommissioning trusts for Peach Bottom at the
time DP&L's interests in the Peach Bottom licenses are
transferred to PECO or EGC and to PSEG Nuclear LLC, all of
DP&L's accumulated decommissioning trust funds for Peach Bottom
Units 2 and 3, divided equally between the PECO or EGC trusts,
as appropriate to the transferee, and the PSEG Nuclear LLC
trusts. Immediately following such transfer, the amounts in the
PECO or EGC and PSEG Nuclear LLC decommissioning trusts
combined with the additional payments from ACE that would be
owed to PECO or EGC and to PSEG Nuclear LLC under the
respective contractual commitments referenced in the
application, which contractual commitments sand effect force at
the time of the transfer, and that in turn would be contributed
to the respective decommissioning trusts as represented in the
application must, with respect to the interests in Peach Bottom
Units 2 and 3 transferred from DP&L that PECO or EGC and PSEG
Nuclear LLC would then hold, be at a level no less than the
formula amounts under 10 CFR Section 50.75.
2. ACE shall transfer to the PECO or EGC decommissioning trusts
for Peach Bottom, as appropriate to the transferee, and to the
PSEG Nuclear LLC decommissioning trusts for Peach Bottom at the
time ACE's interests in the Peach Bottom licenses are
transferred to PECO or EGC and to PSEG Nuclear LLC, all of
ACE's accumulated decommissioning trust funds for Peach Bottom
Units 2 and 3. Immediately following such transfer, the amounts
in the PECO or EGC and PSEG Nuclear LLC decommissioning trusts
must, with respect to the interests in Peach Bottom Units 2 and
3 transferred from DP&L and ACE that PECO or EGC and PSEG
Nuclear LLC would then hold, be at a level no less than the
formula amounts under 10 CFR Section 50.75.
3. The decommissioning trust agreements for Peach Bottom Units 2
and 3, with respect to decommissioning trust funds held by EGC
and PSEG Nuclear LLC shall provide or continue to provide
essentially that:
a. The agreement must be in a form acceptable to the NRC.
b. Investments in the securities or other obligations of the
respective parent of the respective licensee, i.e., EGC
or PSEG Nuclear LLC, affiliates thereof, or their
successors or assigns, shall be prohibited. In addition,
except for investments tied to market indexes or other
non-nuclear sector mutual funds, investments in any
entity owning one or more nuclear power plants shall be
prohibited.
c. No disbursements or payments from the trust, other than
for ordinary administrative expenses, shall be made by
the trustee until the trustee has first given the NRC 30
days prior written notice of the payment. In addition, no
disbursements or payments from the trust shall be made if
the trustee receives prior written notice of objection
from the Director, Office of Nuclear Reactor Regulation.
d. The trust agreement shall not be modified in any material
respect without prior written notification to the
Director, Office of Nuclear Reactor Regulation.
e. The trustee, investment advisor, or anyone else directing
the investments made in the trust shall adhere to a
"prudent investor" standard, as specified in 18 CFR
35.32(a)(3) of the Federal Energy Regulatory Commission's
regulations.
4. With respect to each transfer approved by this Order, after
receipt of all required regulatory approvals, the relevant
transferor and transferee shall inform the Director, Office of
Nuclear Reactor Regulation, in writing of such receipt and of
the date of closing of the transfer no later than 1 business
day before the date of closing. If any transfer approved by
this Order is not completed by December 31, 2001, this Order
shall become null and void with respect to such transfer;
provided, however, on application and for good cause shown,
such date may be extended.
IT IS FURTHER ORDERED that, consistent with 10 CFR 2.1315(b), license
amendments that make changes, as indicated in Enclosure 2 to the cover
letter forwarding this Order, to conform the Peach Bottom licenses to
reflect the subject transfers are approved. Such amendments as appropriate
to the particular license transfer occurring shall be issued and made
effective at the time the proposed corresponding license transfer is
completed.
IT IS FURTHER ORDERED that to the extent the previous Order, issued
April 21, 2000, related to the license transfers approved by this Order, is
inconsistent with this Order, the April 21, 2000, Order is hereby
superseded. Also, condition 2 of the April 21, 2000, Order is modified to
supplement the reference to PECO with a reference to EGC in the
alternative, as appropriate to the actual transferee. In addition, for good
cause shown in the application, namely, the delay in receiving other
necessary regulatory approvals, the approval of any concurrent transfer of
one-half of the DP&L interests and one-half of the ACE interests in the
Peach Bottom licenses to PSEG Nuclear LLC shall remain effective until
December 31, 2001, under the applicable terms and conditions set forth in
the April 21, 2000, Order.
This Order is effective upon issuance.
For further details with respect to this Order, see the application
dated October 10, 2000, and the related safety evaluation issued with this
Order. Also see the application dated December 21, 1999, and supplements
thereto dated February 11, March 2, and March 16, 2000, and the Orders and
related safety evaluations dated August 3, and October 5, 2000, pertaining
to related Peach Bottom license transfers involving EGC and PECO, which may
be examined, and/or copied for a fee, at the NRC's Public Document Room,
located at One WhiteFlint North, 11555 Rockville Pike (first floor),
Rockville, MD, and are accessible electronically through the ADAMS Public
Electronic Reading Room link at the NRC Web site http://www.nrc.gov. Dated
at Rockville, Maryland, this 27 TH day of December 2000.
FOR THE NUCLEAR REGULATORY COMMISSION
/RA/
Jacqueline E. Silber, Acting Director
Office of Nuclear Reactor Regulation
PECO ENERGY COMPANY
PSEG NUCLEAR LLC
DELMARVA POWER AND LIGHT COMPANY
ATLANTIC CITY ELECTRIC COMPANY
DOCKET NO. 50-277
PEACH BOTTOM ATOMIC POWER STATION, UNIT 2
AMENDMENT TO FACILITY OPERATING LICENSE
Amendment No.
License No. DPR-44
1. The Nuclear Regulatory Commission (the Commission) has found that:
A. The application for amendment filed by PECO Energy Company, et
al., dated October 10, 2000, complies with the standards and
requirements of the Atomic Energy Act of 1954, as amended (the
Act), and the Commis sion's rules and regulations set forth in
10 CFR Chapter I;
B. The facility will operate in conformity with the application,
the provisions of the Act, and the rules and regulations of the
Commission;
C. There is reasonable assurance: (i) that the activities
authorized by this amendment can be conducted without
endangering the health and safety of the public, and (ii) that
such activities will be conducted in compliance with the
Commission's regulations;
D. The issuance of this amendment will not be inimical to the
common defense and security or to the health and safety of the
public; and
E. The issuance of this amendment is in accordance with 10 CFR
Part 51 of the Commission's regulations and all applicable
requirements have been satisfied.
2. Accordingly, Facility Operating License No. DPR-44 is hereby amended
as indicated in the attachments hereto.
3. This license amendment is effective as of its date of issuance and
shall be imple mented within 30 days of issuance.
FOR THE NUCLEAR REGULATORY COMMISSION
Jacqueline E. Silber, Acting Director
Office of Nuclear Reactor Regulation
Attachment: Changes to License DPR-44
Date of Issuance:
ATTACHMENT TO LICENSE AMENDMENT NO.
FACILITY OPERATING LICENSE NO. DPR-44
DOCKET NO. 50-277
Replace the following pages of the Facility Operating License with the
attached revised pages. The revised pages are identified by amendment
number and contain marginal lines indicating the areas of change.
Remove Pages Insert Pages
------------ ------------
1 1
2 2
PECO ENERGY COMPANY
PSEG NUCLEAR LLC
ATLANTIC CITY ELECTRIC COMPANY
DOCKET NO. 50-277
PEACH BOTTOM ATOMIC POWER STATION, UNIT 2
FACILITY OPERATING LICENSE
License No. DPR-44
Amendment No. 1
1. The Atomic Energy Commission (the Commission) having found that:
A. The application for license filed by PECO Energy Company,
formerly Philadelphia Electric Company, PSEG Nuclear LLC, and
Atlantic City Electric Company (the licensees) complies with
the standards and requirements of the Atomic Energy Act of
1954, as amended (the Act), and the Commission's rules and
regulations set forth in 10 CFR Chapter I and all required
notifications to other agencies or bodies have been duly made;
B. Construction of the Peach Bottom Atomic Power Station, Unit 2
(the facility) has been substantially completed in conformity
with Construction Permit No. CPPR-37 and the application, as
amended, the provisions of the Act and the rules and
regulations of the Commission;
C. The facility will operate in conformity with the application,
as amended, the provisions of the Act, and the rules and
regulations of the Commission;
D. There is reasonable assurance: (1) that the activities
authorized by this amended operating license can be conducted
without endangering the health and safety of the public, and
(2) that such activities will be conducted in compliance with
the rules and regulations of the Commission;
E. PECO Energy Company is technically qualified and the licensees
are financially qualified to engage in the activities
authorized by this amended operating license in accordance with
the rules and regulations of the Commission;
F. The licensees have satisfied the applicable provisions of 10
CFR Part 140, "Financial Protection Requirements and Indemnity
Agreements," of the Commission's regulations;
G. The issuance of this amended operating license will not be
inimical to the common defense and security or to the health
and safety of the public;
Page 1 Amendment No. 199, 234,
H. After weighing the environmental, economic, technical, and
other benefits of the facility against environmental costs and
considering available alterna tives, the issuance of Amendment
No. 1 to Facility Operating License No. DPR-44 is in accordance
with 10 CFR Part 50, Appendix D, of the Commis sion's
regulations and all applicable requirements of said Appendix D
have been satisfied; and
I. The receipt, possession, and use of source, by-product and
special nuclear material as authorized by this license will be
in accordance with the Commission's regulations in 10 CFR Parts
30, 40, and 70, including 10 CFR Section 30.33, 40.32, and
70.23 and 70.31.
2. Amendment No. I to Facility Operating License No. DPR-44 issued to
the PECO Energy Company (PECO), formerly Philadelphia Electric
Company, PSEG Nuclear LLC (PSEG Nuclear), and Atlantic City Electric
Company (ACEC), is hereby amended in its entirety to read as follows:
A. This amended license applies to the Peach Bottom Atomic Power
Station, Unit 2, a single cycle, forced circulation, boiling
water nuclear reactor and associated equipment (the facility),
owned by the licensees and operated by PECO Energy Company. The
facility is located in Peach Bottom, York County, Pennsylvania
and is described in the "Final Safety Analysis Report" as
supplemented and amended and the Environmental Report as supple
mented and amended.
B. Subject to the conditions and requirements incorporated herein,
the Commission hereby licenses:
(1) PECO Energy Company, pursuant to Section 104b of the Act
and 10 CFR Part 50, "Licensing of Production and
Utilization Facilities," to possess, use, and operate the
facility and PSEG Nuclear, and ACEC to possess the
facility at the designated location in Peach Bottom, York
County, Pennsylvania in accordance with the proce dures
and limitations set forth in this license;
(2) PECO Energy Company, pursuant to the Act and 10 CFR Part
70, to receive, possess and use at any time special
nuclear material as reactor fuel, in accordance with the
limitations for storage and amounts required for reactor
operation, as described in the Final Safety Analysis
Report, as supplemented and amended;
(3) PECO Energy Company, pursuant to the Act and 10 CFR parts
3b, 40, and 70 to receive, possess and use at any time
any byproduct, source and special nuclear material as
sealed neutron sources for reactor startup, sealed
sources for reactor instrumentation and radiation
monitoring equipment calibration, and as fission
detectors in amounts as required;
(4) PECO Energy Company, pursuant to the Act and 10 CFR Parts
30, 40 and 70 to receive, possess and use in amounts as
required any by product, source, or special nuclear
material without
Page 2 Amendment No. 18, 199, 215, 234,
PECO ENERGY COMPANY
PSEG NUCLEAR LLC
DELMARVA POWER AND LIGHT COMPANY
ATLANTIC CITY ELECTRIC COMPANY
DOCKET NO. 50-278
PEACH BOTTOM ATOMIC POWER STATION, UNIT 3
AMENDMENT TO FACILITY OPERATING LICENSE
Amendment No.
License No. DPR-56
1. The Nuclear Regulatory Commission (the Commission) has found that:
A. The application for amendment filed by PECO Energy Company, et
al., dated October 10, 2000, complies with the standards and
requirements of the Atomic Energy Act of 1954, as amended (the
Act), and the Commission's rules and regulations set forth in
10 CFR Chapter 1;
B. The facility will operate in conformity with the application,
the provisions of the Act, and the rules and regulations of the
Commission;
C. There is reasonable assurance: (i) that the activities
authorized by this amend ment can be conducted without
endangering the health and safety of the public, and (ii) that
such activities will be conducted in compliance with the
Commission's regulations;
D. The issuance of this amendment will not be inimical to the
common defense and security or to the health and safety of the
public; and
E. The issuance of this amendment is in accordance with 10 CFR
Part 51 of the Commission's regulations and all applicable
requirements have been satisfied,
2. Accordingly, Facility Operating License No. DPR-56 is hereby amended
as indicated in the attachments hereto.
3. The license amendment is effective as of its date of issuance and
shall be implemented within 30 days of issuance.
FOR THE NUCLEAR REGULATORY COMMISSION
Jacqueline E. Silber, Acting Director
Office of Nuclear Reactor Regulation
Attachment: Changes to License DPR-56
Date of Issuance:
ATTACHMENT TO LICENSE AMENDMENT NO.
FACILITY OPERATING LICENSE NO. DPR-56
DOCKET NO. 50-278
Replace the following pages of the Facility Operating License with the
attached revised pages. The revised pages are identified by amendment
number and contain marginal lines indicating the areas of change.
Remove Pages Insert Pages
------------ ------------
1 1
2 2
PECO ENERGY COMPANY
PSEG NUCLEAR LLC
ATLANTIC CITY ELECTRIC COMPANY
DOCKET NO. 50-278
PEACH BOTTOM ATOMIC POWER STATION, UNIT 3
FACILITY OPERATING LICENSE
License No. DPR-56
1. The Atomic Energy Commission (the Commission) having found that:
A. The application for license filed by PECO Energy Company,
formerly Philadelphia Electric Company, PSEG Nuclear LLC, and
Atlantic City Electric Company (the licensees) complies with
the standards and requirements of the Atomic Energy Act of
1954, as amended (the Act), and the Commission's rules and
regulations set forth in 10 CFR Chapter I and all required
notifications to other agencies or bodies have been duly made;
B. Construction of the Peach Bottom Atomic Power Station, Unit 3
(the facility) has been substantially completed in conformity
with Construction Permit No. CPPR-38 and the application, as
amended, the provisions of the Act and the rules and
regulations of the Commission;
C. The facility will operate in conformity with the application,
as amended, the provisions of the Act, and the rules and
regulations of the Commission;
D. There is reasonable assurance: (1) that the activities
authorized by this operating license can be conducted without
endangering the health and safety of the public, and (2) that
such activities will be conducted in compliance with the rules
and regulations of the Commission;
E. PECO Energy Company is technically qualified and the licensees
are financially qualified to engage in the activities
authorized by this amended operating license in accordance with
the rules and regulations of the Commission;
F. The licensees have satisfied the applicable provisions of 10
CFR Part 140, "Financial Protection Requirements and Indemnity
Agreements," of the Commission's regulations;
G. The issuance of this operating license will not be inimical to
the common defense and security or to the health and safety of
the public;
Page 1 Amendment No. 201,238,
H. After weighing the environmental, economic, technical, and
other benefits of the facility against environmental costs and
considering available alternatives, the issuance of Facility
Operating License No. DPR-56 is in accordance with 10 CFR Part
50, Appendix D, of the Commission's regulations and all
applicable requirements of said Appendix D have been satisfied;
and
I. The receipt, possession, and use of source, by-product and
special nuclear material as authorized by this license will be
in accordance with the Commission's regulations in 10 CFR Parts
30, 40, and 70, including 10 CFR Section 30.33, 40.32, and
70.23 and 70.31.
2. Facility Operating License No. DPR-56 is hereby issued to the PECO
Energy Company (PECO), formerly Philadelphia Electric Company, PSEG
Nuclear LLC (PSEG Nuclear), and Atlantic City Electric Company
(ACEC), is hereby amended in its entirety to read as follows:
A. This license applies to the Peach Bottom Atomic Power Station,
Unit 3, a single cycle, forced circulation, boiling water
nuclear reactor and associated equipment (the facility), owned
by the licensees and operated by PECO Energy Company. The
facility is located in Peach Bottom, York County, Pennsylvania
and is described in the "Final Safety Analysis Report" as
supplemented and amended and the Environmental Report as
supplemented and amended.
B. Subject to the conditions and requirements incorporated herein,
the Commission hereby licenses:
(1) PECO Energy Company, pursuant to Section 104b of the Act
and 10 CFR Part 50, "Licensing of Production and
Utilization Facilities," to possess, use, and operate the
facility and PSEG Nuclear, and ACEC to possess the
facility at the designated location in Peach Bottom, York
County, Pennsylvania in accordance with the procedures
and limitations set forth in this license;
(2) PECO Energy company, pursuant to the Act and 10 CFR Part
70, to receive, possess and use at any time special
nuclear material as reactor fuel, in accordance with the
limitations for storage and amounts required for reactor
operation, as described in the Final Safety Analysis
Report, as supplemented and amended;
(3) PECO Energy Company, pursuant to the Act and 10 CFR Parts
30, 40, and 70 to receive, possess and use at any time
any byproduct, source and special nuclear material as
sealed neutron sources for reactor startup, sealed
sources for reactor instrumentation and radiation
monitoring equipment calibration, and as fission
detectors in amounts as required;
(4) PECO Energy Company, pursuant to the Act and 10 CFR Parts
30, 40 and 70 to receive, possess and use in amounts as
required any byproduct, source, or special nuclear
material without restriction to chemical or physical form
for sample analysis or instrument calibration or when
associated with radioactive apparatus or components;
Page 2 Amendment No. 17, 201, 220, 238,
EXELON GENERATION COMPANY, LLC*
PECO ENERGY COMPANY*
PSEG NUCLEAR LLC
ATLANTIC CITY ELECTRIC COMPANY
DOCKET NO. 50-277
PEACH BOTTOM ATOMIC POWER STATION, UNIT 2
AMENDMENT TO FACILITY OPERATING LICENSE
Amendment No.
License No. DPR-44
1. The Nuclear Regulatory Commission (the Commission) has found that:
A. The application for amendment filed by PECO Energy Company, et
al., dated October 10, 2000, complies with the standards and
requirements of the Atomic Energy Act of 1954, as amended (the
Act), and the Commission's rules and regulations set forth in
10 CFR Chapter 1;
B. The facility will operate in conformity with the application,
the provisions of the Act, and the rules and regulations of the
Commission;
C. There is reasonable assurance: (i) that the activities
authorized by this amendment can be conducted without
endangering the health and safety of the public, and (ii) that
such activities will be conducted in compliance with the
Commission's regulations;
D. The issuance of this amendment will not be inimical to the
common defense and security or to the health and safety of the
public; and
E. The issuance of this amendment is in accordance with 10 CFR
Part 51 of the Commission's regulations and all applicable
requirements have been satisfied.
2. Accordingly, Facility Operating License No. DPR-44 is hereby amended
as indicated in the attachments hereto.
*Shall not be listed unless at the time of the issuance of an amendment,
the entity is an existing licensee.
3. This license amendment is effective as of its date of issuance and
shall be implemented within 30 days of issuance.
FOR THE NUCLEAR REGULATORY COMMISSION
Jacqueline E. Silber, Acting Director
Office of Nuclear Reactor Regulation
Attachment: Changes to License DPR-44
Date of Issuance:
ATTACHMENT TO LICENSE AMENDMENT NO.
FACILITY OPERATING LICENSE NO. DPR-44
DOCKET NO. 50-277
Replace the following pages of the Facility Operating License with the
attached revised pages. The revised pages are identified by amendment
number and contain marginal lines indicating the areas of change.
Remove Pages Insert Pages
------------ ------------
1 1
2 2
EXELON GENERATION COMPANY, LLC
PSEG NUCLEAR LLC
DOCKET NO. 50-277
PEACH BOTTOM ATOMIC POWER STATION, UNIT 2
FACILITY OPERATING LICENSE
License No. DPR-44
1. The Atomic Energy Commission (the Commission) having found that:
A. The application for license filed by Exelon Generation Company,
LLC (Exelon Generation Company), and PSEG Nuclear LLC (the
licensees), complies with the standards and requirements of the
Atomic Energy Act of 1954, as amended (the Act), and the
Commission's rules and regulations set forth in 10 CFR Chapter
I and all required notifications to other agencies or bodies
have been duly made;
B. Construction of the Peach Bottom Atomic Power Station, Unit 2
(the facility) has been substantially completed in conformity
with Construction Permit No. CPPR-37 and the application, as
amended, the provisions of the Act and the rules and
regulations of the Commission;
C. The facility will operate in conformity with the application,
as amended, the provisions of the Act, and the rules and
regulations of the Commission;
D. There is reasonable assurance: (1) that the activities
authorized by this operating license can be conducted without
endangering the health and safety of the public, and (2) that
such activities will be conducted in compliance with the rules
and regulations of the Commission;
E. Exelon Generation Company is technically qualified and the
licensees are financially qualified to engage in the activities
authorized by this amended operating license in accordance with
the rules and regulations of the Commission;
F. The licensees have satisfied the applicable provisions of 10
CFR Part 140, "Financial Protection Requirements and Indemnity
Agreements," of the Commission's regulations;
G. The issuance of this amended operating license will not be
inimical to the common defense and security or to the health
and safety of the public;
Page 1 Amendment No. 199, 234,
H. After weighing the environmental, economic, technical, and
other benefits of the facility against environmental costs and
considering available alternatives, the issuance of Amendment
No. 1 to Facility Operating License No. DPR-44 is in accordance
with 10 CFR Part 50, Appendix D, of the Commission's
regulations and all applicable requirements of said Appendix D
have been satisfied; and
I. The receipt, possession, and use of source, by-product and
special nuclear material as authorized by this license will be
in accordance with the Commission's regulations in 10 CFR Parts
30, 40, and 70, including 10 CFR Section 30.33, 40.32, and
70.23 and 70.31.
2. Amendment No. 1 to Facility Operating License No. DPR-44 issued to
the Exelon Generation Company (PECO), and PSEG Nuclear LLC (PSEG
Nuclear), is hereby amended in its entirety to read as follows:
A. This amended license applies to the Peach Bottom Atomic Power
Station, Unit 2, a single cycle, forced circulation, boiling
water nuclear reactor and associated equipment (the facility),
owned by the licensees and operated by Exelon Generation
Company. The facility is located in Peach Bottom, York County,
Pennsylvania and is described in the "Final Safety Analysis
Report" as supplemented and amended and the Environmental
Report as supplemented and amended.
B. Subject to the conditions and requirements incorporated herein,
the Commission hereby licenses:
(1) Exelon Generation Company, pursuant to Section 104b of
the Act and 10 CFR Part 50, "Licensing of Production and
Utilization Facilities," to possess, use, and operate the
facility and PSEG Nuclear to possess the facility at the
designated location in Peach Bottom, York County,
Pennsylvania in accordance with the procedures and
limitations set forth in this license;
(2) Exelon Generation Company, pursuant to the Act and 10 CFR
Part 70, to receive, possess and use at any time special
nuclear material as reactor fuel, in accordance with the
limitations for storage and amounts required for reactor
operation, as described in the Final Safety Analysis
Report, as supplemented and amended;
(3) Exelon Generation Company, pursuant to the Act and 10 CFR
parts 30, 40, and 70 to receive, possess and use at any
time any byproduct, source and special nuclear material
as sealed neutron sources for reactor startup, sealed
sources for reactor instrumentation and radiation
monitoring equipment calibration, and as fission
detectors in amounts as required;
(4) Exelon Generation Company, pursuant to the Act and 10 CFR
Parts 30, 40 and 70 to receive, possess and use in
amounts as required any byproduct, source, or special
nuclear material without
Page 2 Amendment No. 18, 199, 215, 234,
EXELON GENERATION COMPANY, LLC*
PECO ENERGY COMPANY*
PSEG NUCLEAR LLC
ATLANTIC CITY ELECTRIC COMPANY
DOCKET NO. 50-278
PEACH BOTTOM ATOMIC POWER STATION, UNIT 3
AMENDMENT TO FACILITY OPERATING LICENSE
Amendment No.
License No. DPR-56
1. The Nuclear Regulatory Commission (the Commission) has found that:
A. The application for amendment filed by PECO Energy Company, et
al., dated October 10, 2000, complies with the standards and
requirements of the Atomic Energy Act of 1954, as amended (the
Act), and the Commission's rules and regulations set forth in
10 CFR Chapter 1;
B. The facility will operate in conformity with the application,
the provisions of the Act, and the rules and regulations of the
Commission;
C. There is reasonable assurance: (i) that the activities
authorized by this amendment can be conducted without
endangering the health and safety of the public, and (ii) that
such activities will be conducted in compliance with the
Commission's regulations;
D. The issuance of this amendment will not be inimical to the
common defense and security or to the health and safety of the
public; and
E. The issuance of this amendment is in accordance with 10 CFR
Part 51 of the Commis sion's regulations and all applicable
requirements have been satisfied.
2. Accordingly, Facility Operating License No. DPR-56 is hereby amended
as indicated in the attachments hereto.
*Shall not be listed unless at the time of the issuance of an amendment,
the entity is an existing licensee.
3. The license amendment is effective as of its date of issuance and
shall be implemented within 30 days of issuance.
FOR THE NUCLEAR REGULATORY COMMISSION
Jacqueline E. Silber, Acting Director
Office of Nuclear Reactor Regulation
Attachment: Changes to License DPR-56
Date of Issuance:
ATTACHMENT TO LICENSE AMENDMENT NO.
FACILITY OPERATING LICENSE NO. DPR-56
DOCKET NO. 50-278
Replace the following pages of the Facility Operating License with the
attached revised pages. The revised pages are identified by amendment
number and contain marginal lines indicating the areas of change.
Remove Pages Insert Pages
------------ ------------
1 1
2 2
EXELON GENERATION COMPANY, LLC
PSEG NUCLEAR LLC
DOCKET NO. 50-278
PEACH BOTTOM ATOMIC POWER STATION, UNIT 3
FACILITY OPERATING LICENSE
License No. DPR-56
1. The Atomic Energy Commission (the Commission) having found that:
A. The application for license filed by Exelon Generation Company,
LLC (Exelon Generation Company), and PSEG Nuclear LLC (the
licensees), complies with the standards and requirements of the
Atomic Energy Act of 1954, as amended (the Act), and the
Commission's rules and regulations set forth in 10 CFR Chapter
I and all required notifications to other agencies or bodies
have been duly made;
B. Construction of the Peach Bottom Atomic Power Station, Unit 3
(the facility) has been substantially completed in conformity
with Construction Permit No. CPPR-38 and the application, as
amended, the provisions of the Act and the rules and
regulations of the Commission;
C. The facility will operate in conformity with the application,
as amended, the provisions of the Act, and the rules and
regulations of the Commission;
D. There is reasonable assurance: (1) that the activities
authorized by this operating license can be conducted without
endangering the health and safety of the public, and (2) that
such activities will be conducted in compliance with the rules
and regulations of the Commission;
E. Exelon Generation Company is technically qualified and the
licensees are financially qualified to engage in the activities
authorized by this amended operating license in accordance with
the rules and regulations of the Commission;
F. The licensees have satisfied the applicable provisions of 10
CFR Part 140, "Financial Protection Requirements and Indemnity
Agreements," of the Commission's regulations;
G. The issuance of this operating license will not be inimical to
the common defense and security or to the health and safety of
the public;
Page 1 Amendment No. 201, 238,
H. After weighing the environmental, economic, technical, and
other benefits of the facility against environmental costs and
considering available alternatives, the issuance of Facility
Operating License No. DPR-56 is in accordance with 10 CFR Part
50, Appendix D, of the Commission's regulations and all
applicable requirements of said Appendix D have been satisfied;
and
I. The receipt, possession, and use of source, by-product and
special nuclear material as authorized by this license will be
in accordance with the Commission's regulations in 10 CFR Parts
30, 40, and 70, including 10 CFR Section 30.33, 40.32, and
70.23 and 70.31.
2. Facility Operating License No. DPR-56 is hereby issued to the Exelon
Generation Company, and PSEG Nuclear LLC (PSEG Nuclear) is hereby
amended in its entirety to read as follows:
A. This license applies to the Peach Bottom Atomic Power Station,
Unit 3, a single cycle, forced circulation, boiling water
nuclear reactor and associated equipment (the facility), owned
by the licensees and operated by Exelon Generation Company. The
facility is located in Peach Bottom, York County, Pennsylvania
and is described in the "Final Safety Analysis Report" as
supplemented and amended and the Environmental Report as
supplemented and amended.
B. Subject to the conditions and requirements incorporated herein,
the Commission hereby licenses:
(1) Exelon Generation Company, pursuant to Section 104b of
the Act and 10 CFR Part 50, "Licensing of Production and
Utilization Facilities," to possess, use, and operate the
facility and PSEG Nuclear to possess the facility at the
designated location in Peach Bottom, York County,
Pennsylvania in accordance with the procedures and
limitations set forth in this license;
(2) Exelon Generation company, pursuant to the Act and 10 CFR
Part 70, to receive, possess and use at any time special
nuclear material as reactor fuel, in accordance with the
limitations for storage and amounts required for reactor
operation, as described in the Final Safety Analysis
Report, as supplemented and amended;
(3) Exelon Generation Company, pursuant to the Act and 10 CFR
Parts 30, 40, and 70 to receive, possess and use at any
time any byproduct, source and special nuclear material
as sealed neutron sources for reactor startup, sealed
sources for reactor instrumentation and radiation
monitoring equipment calibration, and as fission
detectors in amounts as required;
(4) Exelon Generation Company, pursuant to the Act and 10 CFR
Parts 30, 40 and 70 to receive, possess and use in
amounts as required any byproduct, source, or special
nuclear material without restriction to chemical or
physical form for sample analysis or instrument
calibration or when associated with radioactive apparatus
or components;
Page 2 Amendment No. 17, 201, 220, 238,
SAFETY EVALUATION BY THE OFFICE OF NUCLEAR REACTOR REGULATION
PROPOSED TRANSFER OF OWNERSHIP INTERESTS OF
ATLANTIC CITY ELECTRIC COMPANY AND DELMARVA POWER & LIGHT COMPANY
TO PECO ENERGY COMPANY, EXELON GENERATION COMPANY, LLC,
AND PSEG NUCLEAR LLC
AND CONFORMING AMENDMENTS
PEACH BOTTOM ATOMIC POWER STATION, UNITS 2 AND 3
DOCKET NOS. 50-277 AND 50-278
1.0 INTRODUCTION
By application dated December 21, 1999, as supplemented February 11, March
2, and March 16, 2000, PECO Energy Company (PECO), PSEG Nuclear LLC (PSEG
Nuclear), Atlantic City Electric Company (ACE), and Delmarva Power and
Light Company (DP&L) requested U.S. Nuclear Regula tory Commission (NRC)
approval to transfer Facility Operating Licenses Nos. DPR-44 AND DPR-56 for
the Peach Bottom Atomic Power Station, Units 2 and 3 (Peach Bottom), to the
extent the licenses are held by ACE and DP&L, to PECO and PSEG Nuclear. The
application also requested NRC approval of conforming license amendments.
On April 21, 2000, the NRC issued an Order approving the transfer. This
Order, with an expiration date of December 31, 2000, was premised in part
on the DP&L and ACE transfers occurring concurrently. The Order also
approved conforming license amendments, to be issued at the time the
transfers were completed.
On August 3, 2000, the NRC issued an Order approving the transfer of
ownership interests of PECO Energy Company (PECO) in Peach Bottom to Exelon
Generation Company, LLC (EGC). This Order also approved the transfer of
PECO's authority to operate Peach Bottom to EGC. As of the date of this
safety evaluation those transfers have not yet taken place.
On August 21, 2000, the licenses for Peach Bottom, to the extent then held
by Public Service Electric and Gas Company (PSE&G), were transferred to
PSEG Nuclear. This license transfer had been approved by an NRC Order
issued February 16, 2000.
On October 5, 2000, the NRC approved the indirect transfer of the Peach
Bottom licenses, to the extent then held by PECO, to Exelon Corporation,
finding, among other things, that PECO's becoming a subsidiary of Exelon
Corporation, in connection with a merger involving Unicorn Corporation,
would not affect the qualifications of PECO as a holder of the Peach Bottom
licenses.
On October 10, 2000, PECO submitted an application that notified the NRC of
developments that have changed the schedule for closing the ACE and DP&L
transactions, and requested NRC approval of revised operating license
amendments consistent with independent transfers of the minority ownership
interests held by DP&L and ACE in two phases. The application requested the
NRC to modify prior conditions of approval concerning decommissioning fund
amounts to be transferred to be consistent with the transfers occurring in
two phases, and to extend the expiration date of the April 21, 2000, Order
to December 31, 2001. The application also requested that the NRC issue
other approvals as they may be necessary in light of the schedular changes
described.
On October 20, 2000, PECO became a wholly owned subsidiary of Exelon
Corporation, consistent with the indirect transfer approved by an NRC Order
dated October 5, 2000.
The ownership interests in Peach Bottom, as of the date of this safety
evaluation, are as follows: PECO holds a 42.49-percent interest, and is the
licensed operator of Peach Bottom; PSEG Nuclear LLC holds a 42.49-percent
interest; DP&L holds a 7.51 -percent interest; and ACE holds a 7.51 -
percent interest. The application states that when either DP&L or ACE
transfer their ownership interests, the interests will be split equally
between PECO and PSEG Nuclear, or equally between EGC and PSEG Nuclear.
The transfer of the minority interests presently owned by ACE and DP&L will
have no impact on the management or operation of Peach Bottom, according to
the application.
2.0 DISCUSSION
The NRC staff issued a safety evaluation dated April 21, 2000, analyzing
the transfer of the DP&L and ACE interests to PECO, as it then existed as
an independent entity, and to PSEG Nuclear and concluded that PECO and PSEG
Nuclear were qualified to hold the Peach Bottom licenses with respect to
these interests, and that the license transfers would otherwise be
consistent with applicable provisions of law, regulations, and orders
issued by the Commission. The staff s analysis was premised in part on the
interests of DP&L and ACE, both subsidiaries of Conectiv, being transferred
concurrently. Also, the NRC staff issued a safety evaluation dated August
3, 2000, analyzing the transfer of the current PECO ownership interests in
Peach Bottom to EGC, and concluded that EGC would be qualified to hold the
Peach Bottom licenses with respect to these interests, and that the license
transfers would otherwise be consistent with applicable provisions of law,
regulations, and orders issued by the Commission. The August 3, 2000,
safety evaluation also found that EGC was qualified to operate Peach
Bottom, which currently is the responsibility of PECO.
After reviewing the October 10, 2000, application, the NRC staff determined
that the only issues analyzed in the April 21, 2000, safety evaluation that
could potentially be impacted by the DP&L and ACE transfers occurring at
different times were PSEG Nuclear's financial qualifications (PECO is
currently an electric utility under 10 CFR 50.2 and thus is not subject to
a financial qualifications review under 10 CFR 50.33(f)) and whether PSEG
Nuclear and PECO would have adequate assurance of decommissioning funding.
However, the NRC staff also determined that the transfer of the DP&L and
ACE interests, whether occurring simultaneously or separately, to EGC,
either directly from DP&L and ACE or indirectly from PECO, has not been
expressly analyzed or approved in any prior transfer approval action.
The NRC staff further determined, on the other hand, that if the schedular
change and associated change in decommissioning funding arrangements, as
discussed herein, for the transfer of the DP&L and ACE interests are found
not to materially impact the previous April 21, 2000, finding that PECO is
qualified to hold the licenses with respect to the DP&L and ACE interests,
then the fact that PECO is now a subsidiary of Exelon Corporation would
have no effect on such finding. This further determination was made in
light of the October 5, 2000, safety evaluation which concluded, among
other things, that there would be no effect on PECO's qualifications to
hold the Peach Bottom licenses now held by PECO by reason of PECO becoming
a subsidiary of Exelon Corporation.
3.0 FINANCIAL QUALIFICATIONS ANALYSIS
After the proposed transfers of the Peach Bottom licenses, PECO or EGC will
have an ownership interest of 50 percent in Peach Bottom, while PSEG
Nuclear will own the remaining 50-percent interest. PECO will continue to
be the licensed operator of the Peach Bottom Units, or EGC will become the
operator once it becomes a licensee.
In the safety evaluation included in the April 21, 2000, Order authorizing
the transfer of the ACE and DP&L interests in the Peach Bottom units,
PECO's financial qualifications were presumed adequate due to its continued
status as an electric utility. PECO's financial qualifications would
continue to be presumed adequate notwithstanding the transfer of the DP&L
AND ACE INTERESTS OCCURRING in two phases.
In connection with the August 3, 2000, Order authorizing the transfer of
PECO's interest in the Peach Bottom facilities to EGC, PECO submitted
financial information for NRC analysis and based on that EGC was found to
be financially qualified to own and operate those units with respect to a
42.49 percent interest in Peach Bottom Units 2 and 3 and a 100 percent
interest in Peach Bottom Unit 1. After reconsidering the financial
information that the licensee submitted and after reviewing the projected
income statement submitted with the October 10, 2000, application, the NRC
staff has determined that even with the incremental increase in ownership
of Peach Bottom that would result from the proposed transfer to EGC of half
of DP&L's and ACE's share of Peach Bottom, EGC's projected 5-year costs
would be covered by expected revenues, and that therefore, EGC is finan
cially qualified under 10 CIFIR 50.33(f)(2) to own and operate Peach Bottom
under all transfer scenarios discussed herein.
With respect to PSEG Nuclear, the NRC staff concludes that the incremental
transfer of DP&L's or ACE's ownership share of Peach Bottom at different
times does not alter the NRC staff's conclusion from the April 21, 2000,
Order that PSEG Nuclear will be financially qualified to own each
additional share of Peach Bottom. This conclusion is based on the projected
income statement submitted with the application, which provides information
relating to each 3.755 percent interest to be transferred, and which shows
projected revenues will cover costs. Under 10 CFR 50.33(f)(2), PSEG Nuclear
is, therefore, financially qualified under all transfer scenarios to hold
the Peach Bottom licenses.
Based on these findings, no further financial qualifications analysis is
needed for this evaluation.
4.0 DECOMMISSIONING FUNDING
The NRC has determined that the requirements to provide assurance of
decommissioning funding and provision of an adequate amount of
decommissioning funding are necessary to ensure the adequate protection of
public health and safety.
The October 10, 2000, application indicates that the current plan is for
DP&L to transfer its 7.51 percent ownership interest in Peach Bottom to
PECO or to EGC (3.755%) and to PSEG Nuclear (3.755%) prior to the transfer
of the ACE interests. So for an interim period ACE will continue to own
7.51 percent of each of the units, and PECO or EGC and PSEG Nuclear will
each own 46.245 percent of the shares. At some later date the ACE shares
may be transferred such that eventually PECO or EGC and PSEG Nuclear are
expected to each hold one half of the ACE interests.
In the safety evaluation supporting the Order dated April 21, 2000,
approving the transfer of licenses for Peach Bottom from ACE and DP&L to
PECO and PSEG Nuclear, the NRC staff found that the proposed funding
mechanisms proposed in the December 21, 1999, application provided
reasonable assurance of decommissioning funding in accordance with 10 CFR
50.75(e), provided that the Order approving the license transfers contained
a condition to ensure the implementation of the proposed mechanism. That
evaluation assumed that the transfers of the ACE and DP&L ownership
interests would occur simultaneously. In the application of October 10,
2000, PECO notified the NRC that the closing on the transfer of the ACE
interests has been delayed and would now take place sometime after the
transfer of the DP&L interests.
When the transfer of the DP&L ownership interests occurs, all assets held
in the DP&L decommis sioning trusts for Peach Bottom will be transferred to
the transferees' decommissioning trusts. At that point, PECO or EGC will
own 46.245 percent of Peach Bottom Units 2 and 3, ACE will continue to own
7.51 percent, and PSEG Nuclear will own 46.245 percent.
Attachment E to the October 10, 2000, submittal discusses the fund balances
to be transferred. It states that the current combined trust fund balances
of DP&L and ACE for Peach Bottom Units 2 and 3 are sufficient to qualify as
fully pre-paid for the companies' combined 15.02-percent interest in each
unit, within the meaning of 10 CFR 50.75(e)(1)(i), when earnings are
credited using a two percent real rate of return until the end of the
operating licenses for each unit. Attachment E states the NRC minimum
amount for decommissioning funding assurance for either Peach Bottom Unit 2
or 3 is $375,504,999. The current level of funding necessary to be
considered "prepaid" for Unit 2 would be approximately $290.3 million (or
$21.8 million for a 7.51 percent share). Slightly lower amounts would be
needed for Unit 3, because its license expires later and further earnings
on the fund could be credited.
The current balances in the DP&L accounts for Peach Bottom Units 2 and 3,
respectively, are $18,243,471 and $18,246,878. The current balances in the
ACE accounts are slightly higher at $26,531,762 and $27,954,709,
respectively. The minimum to be considered prepaid currently would be
approximately $21.8 million for a 7.51 percent share. Therefore, the ACE
accounts exceed the prepaid amount and the DP&L accounts are not sufficient
to meet the prepaid amount, based on contributing a 7.51 percent share.
Attachment E to the October 10, 2000, application states that while there
is an expectation, there is no guarantee that the ACE interests and funds
for each unit will be transferred. As previously indicated, any ACE
transfer would occur subsequent to the DP&L transfer. The application
states that ACE has agreed that in the event that it is unable to transfer
its interests and nuclear decommission ing trust (NDT) funds, it will
provide funding to PECO or EGC (whichever is then holding the IDP&L
interests) and to PSEG Nuclear in an amount equal to the difference between
the actual DP&L NDT fund balances transferred, and the average of the IDP&L
and ACE fund balances that would have been transferred if both had been
transferred at the same time. PECO, for itself and EGC, and PSEG Nuclear
have agreed and represented in the application that they will place their
corresponding portions of any such payment from ACE into their respective
NIDT funds for each unit. When these payments are credited to the funds and
added to the IDP&L fund balances, the total amount transferred would exceed
the current level of funding required to meet the prepayment method of
providing financial assurance. The NRC staff has determined the foregoing
will provide assurance of decommissioning funding in accordance with 10 CFR
50.75(e)(1)(vi) that is equivalent to that provided by the mechanisms
specified in 10 CFR 50.75(e)(1)(i) through (v).
The NRC staff verified the calculations provided by the applicants and
agrees that the decommission ing trust funds for the combined IDP&L
ownership shares of Peach Bottom Units 2 and 3 transferred will be fully
funded whether or not the ACE transfer occurs, provided that the
contractual provisions that obligate ACE to make decommissioning fund
payments are met. Based on the discussion above, the staff concludes that
the applicants have complied with the requirements of 10 CFR 50.75(c) with
respect to the amount of decommissioning funding they must provide. The
value of the decommis sioning trusts vary over time, since investments are
made in various stocks and securities which vary in value as financial
market conditions change. It is not possible to precisely state the value
of the decommissioning trusts as of the date the license transfers will
occur. Therefore, to ensure that decommissioning funding assurance will
meet regulatory requirements, the staff concludes that the Order approving
the license transfers must contain the following conditions:
1. DP&L shall transfer to the PECO or EGC decommissioning trusts for
Peach Bottom, as appropriate to the transferee, and to the PSEG
Nuclear LLC decommissioning trusts for Peach Bottom at the time
DP&L's interests in the Peach Bottom licenses are transferred to PECO
or EGC and to PSEG Nuclear ILLC, all of IDP&L's accumulated
decommissioning trust funds for Peach Bottom Units 2 and 3, divided
equally between the PECO or EGC trusts, as appropriate to the
transferee, and the PSEG Nuclear LLC trusts. Immediately following
such transfer, the amounts in the PECO or EGC and PSEG Nuclear LLC
decommissioning trusts combined with the additional payments from ACE
that would be owed to PECO or EGC and to PSEG Nuclear LLC under the
respective contractual commitments referenced in the application,
which contractual commitments shall be in force and effect at the
time of the transfer, and that in turn would be contributed to the
respective decommissioning trusts as represented in the application
must, with respect to the interests in Peach Bottom Units 2 and 3
transferred from DP&L that PECO or EGC and PSEG Nuclear LLC would
then hold, be at a level no less than the formula amounts under 10
CFR Section 50.75.
2. ACE shall transfer to the PECO or EGC decommissioning trusts for
Peach Bottom, as appropriate to the transferee, and to the PSEG
Nuclear LILC decommissioning trusts for Peach Bottom at the time
ACE's interests in the Peach Bottom licenses are transferred to PECO
or EGC and to PSEG Nuclear ILLC, all of ACE's accumulated
decommissioning trust funds for Peach Bottom Units 2 and 3.
Immediately following such transfer, the amounts in the PECO or EGC
and PSEG Nuclear LILC decommissioning trusts must, with respect to
the interests in Peach Bottom Units 2 and 3 transferred from IDP&L
and ACE that PECO or EGC and PSEG Nuclear LLC would then hold, be at
a level no less than the formula amounts under 10 CFR Section 50.75.
The staff notes that the above conditions are specific to the transfer of
the DP&L and ACE interests in two phases. The condition pertaining to the
transfer of decommissioning trust funds contained in the April 21, 2000,
Order is and will remain applicable should the transfer occur as previously
anticipated in one collective step, with one modification, namely, the
reference to PECO in the condition shall be supplemented with a reference
to EGC in the alternative, as appropriate to the actual transferee. The NRC
staff also concludes that, given the considerations discussed herein and
the modifications made or to be made to the decommissioning trust agreement
for each unit as required by the previously referenced Orders dated
February 16 and August 3, 2000, the proposed funding mechanisms provide
reasonable assurance of decommissioning funding in accordance with 10 CFR
50.75(e)..
5.0 TECHNICAL QUALIFICATIONS
The proposed transfers involve no transfer of operational authority under
any license. Also, the application proposes no physical change to the
facility, and no management or operational change. Accordingly, the
application requires no technical qualifications review.
6.0 ANTITRUST
The Atomic Energy Act does not require or authorize antitrust reviews of
post-operating license transfer applications. Kansas Gas and Electric Co.,
et al. (Wolf Creek Generating Station Unit 1), CLI-99-19, 49 NRC 441(1999).
Since the transfer application was submitted after the Peach Bottom
operating licenses were issued, no antitrust review is required or
authorized.
7.0 FOREIGN OWNERSHIP, CONTROL OR DOMINATION
In the NRC staffs safety evaluations associated with the previously
referenced February 16, April 21, August 3, and October 5, 2000, Orders,
PSEG Nuclear, PECO, and EGC were previously analyzed with respect to the
foreign control prohibition contained in 10 CFR 50.38 and the Atomic Energy
Act. The staff determined that it did not know or have reason to believe
that any of these entities were owned, controlled, or dominated by foreign
interests. The October 10, 2000, application presents no new information
that would lead the staff to now conclude otherwise. The NRC staff's prior
determi nation remains applicable.
8.O INSURANCE
PECO and PSEG Nuclear, as existing Peach Bottom licensees, are already
subject to 10 CFR Part 140 Price-Anderson requirements. In addition, EGC is
subject to a condition in the August 3, 2000, Order regarding
Price-Anderson coverage. The NRC staff finds that, based on information
discussed in the financial qualifications section, PECO, EGC, and PSEG
Nuclear will have the ability to pay the pro-rata increase in deferred
premiums, in compliance with 10 CFR 140.21, associated with any of the
subject license transactions.
9.0 CONFORMING AMENDMENTS
9.1 Introduction
The April 21, 2000, Order approved conforming license amendments to reflect
the action approved by that Order, namely, the concurrent transfer of the
IDP&L and ACE interests to PECO and PSEG Nuclear. In the application dated
October 10, 2000, PECO and PSEG Nuclear requested approval of modified
conforming license amendments for Peach Bottom, pursuant to 10 CFR 50.90,
to corre spond to the transfer occurring in two phases, and to include EGC
as a pos ' sible transferee. These amendments would be administrative in
nature and would conform the operating licenses for each of the two units
as appropriate to reflect the proposed license transfers occurring in two
phases.
Notice of the application for approval of the license transfers and
approval of the conforming license amendments for Peach Bottom, which led
to the April 21, 2000, Order, was published in the Federal Register on
February 18, 2000 (65 FR 8451). A second notice was published on November
27, 2000 (65 FR 70740), with respect to the October 10, 2000, application,
to clearly state that the NRC was considering approving the separate
transfer of the DP&L and ACE interests to EGC, in addition to PECO and PSEG
Nuclear, depending on the timing of previously-approved transfers. No
hearing requests or comments were received.
For Peach Bottom Licenses Nos, DPR-44 and DPR-56, references to ACE and
DP&L would be removed at the time each transfers its interest to PSEG
Nuclear and to PECO or EGC. The revised licenses would reflect that PECO or
EGC and PSEG Nuclear are the licensees.
9.2 Evaluation
The proposed modified conforming amendments for Peach Bottom do no more
than accurately reflect the approved transfer actions. The amendments
involve no safety questions and are administrative in nature. Accordingly,
the NRC staff finds that the proposed amendments are acceptable. The NRC
staff notes that the license pages submitted with the October 10, 2000,
application reflect completed licensing actions that occurred after April
21, 2000, when the initial conforming amendments were approved. In
particular, PSE&G has transferred its interests in the Peach Bottom
licenses to PSEG Nuclear, and thus is no longer a licensee or reflected as
such in the proposed amendments. In addition, certain trust agreement
conditions have been, or will be, incorporated into the Peach Bottom
licenses by the February 16, and August 3, 2000, Orders, and thus these
conditions, which appear in the April 21, 2000, amendments, are not
duplicated here in the current proposed amendments.
9.3 State Consultation
In accordance with the Commission's regulations, the Pennsylvania State
Official was notified of the proposed issuance of the amendments. The State
official had no comments.
9.4 Conclusion With Respect To the Conforming Amendments
The Commission has concluded, based on the considerations discussed herein,
that (1) there is reasonable assurance that the health and safety of the
public will not be endangered by operation in the proposed manner, (2) such
activities will be conducted in compliance with the Commission's
regulations, and (3) the issuance of the amendments will not be inimical to
the common defense and security or to the health and safety of the public.
10.0 ENVIRONMENTAL CONSIDERATION
The subject application is for approval of the transfer of licenses issued
by the NRC and approval of conforming amendments. Accordingly, the actions
involved meet the eligibility criteria for categorical exclusion set forth
in 10 CFR 51.22(c)(21). Pursuant to 10 CFR 51.22(b), no environmental
impact statement or environmental assessment need be prepared in connection
with approval of the applications.
11.0 CONCLUSIONS
Based on the foregoing discussion, the NRC staff finds that PECO, EGC, and
PSEG Nuclear are qualified under the specific scenarios set forth above to
hold the Peach Bottom licenses with respect to the ownership interests
being transferred from ACE and DP&L, and that the transfer of the licenses,
to the extent described above, is otherwise consistent with applicable
provisions of law, regulations, and orders issued by the Commission,
subject to the conditions described in this safety evaluation.
Principal Contributors: M. Davis
J. Boska
Date: December 27, 2000
