[Federal Register Volume 66, Number 250 (Monday, December 31, 2001)]
[Notices]
[Pages 67557-67559]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 01-32059]


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NUCLEAR REGULATORY COMMISSION

[Docket Nos. 50-498 and 50-499; License Nos. NPF-76 and NPF-80]


South Texas Project Nuclear Operating Company et al., (South 
Texas Project Electric Generating Station, Unit Nos. 1 and 2); Order 
Approving Transfer of Licenses and Conforming Amendments

I

    Reliant Energy Incorporated (Reliant),\1\ the City Public Service 
Board of San Antonio (CPS), Central Power and Light Company (CPL), and 
the City of Austin, Texas (COA) are the licensed owners, and South 
Texas Project Nuclear Operating Company (STPNOC)

[[Page 67558]]

is the exclusive licensed operator, of South Texas Project Electric 
Generating Station, Units 1 and 2 (STPEGS), and in regard thereto, hold 
Facility Operating License Nos. NPF-76 and NPF-80. STPEGS (the 
facility) is located in Matagorda County, Texas.
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    \1\ Reliant was formerly known as Houston Lighting & Power 
Company (HL&P). HL&P changed its name to Reliant Energy Incorporated 
in 1999.
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II

    By application dated May 31, 2001, as supplemented by letters dated 
June 14, August 13, October 16, and November 7, 2001 (collectively the 
application), STPNOC, on behalf of Reliant, requested the consent of 
the U.S. Nuclear Regulatory Commission (NRC or Commission) to a 
proposed indirect transfer of control of the 30.8 percent undivided 
ownership interest of Reliant in STPEGS under Facility Operating 
License Nos. NPF-76 and NPF-80, to CenterPoint Energy, Inc., a newly-
formed company that will be the new parent holding company of Reliant, 
and, to the extent an indirect transfer would result, Reliant's 30.8 
percent interest in STPNOC, the licensed operator of STPEGS under the 
licenses, to CenterPoint Energy, Inc. The application also requested 
the consent of the Commission to a proposed direct transfer of 
Reliant's 30.8 percent ownership interest in STPEGS to Texas Genco LP, 
which will be indirectly wholly-owned by CenterPoint Energy, Inc., and 
to the indirect transfer of Reliant's 30.8 percent interest in STPNOC 
to Texas Genco LP, to the extent that the transfer of Reliant's 
ownership interest in STPNOC will result in an indirect transfer of the 
STPNOC licenses. According to the application, the proposed direct 
transfer may occur contemporaneously with CenterPoint Energy, Inc. 
becoming the parent holding company of Reliant or some time thereafter. 
The application further requested the approval of conforming license 
amendments to reflect the direct transfer of the licenses.
    The proposed conforming license amendments would replace references 
to HL&P in the licenses with references to Texas Genco LP, as 
appropriate, and make other administrative changes to reflect the 
proposed direct transfer.
    The application requested approval of the direct transfer of the 
facility operating licenses, conforming license amendments, and 
indirect license transfers pursuant to 10 CFR 50.80 and 10 CFR 50.90. 
The staff published a notice of the request for approval and an 
opportunity for a hearing in the Federal Register on September 28, 2001 
(66 FR 49711). The October 16 and November 7, 2001, supplemental 
information did not expand the scope of the application as originally 
noticed in the Federal Register. The Commission received no comments or 
requests for hearing pursuant to the notice.
    Under 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 shall give its consent in writing. Upon 
review of the information in the application, and relying upon the 
representations and agreements contained in the application, the NRC 
staff has determined that the proposed corporate restructuring 
resulting in CenterPoint Energy Inc. becoming the parent holding 
company of Reliant will not affect the qualifications of Reliant to 
hold a 30.80 percent ownership interest in the facility operating 
licenses for STPEGS or have any effect on the qualifications of STPNOC 
to the extent held by Reliant, and that the indirect transfer of the 
licenses for STPEGS and of STPNOC's licenses to the extent effected by 
the proposed corporate restructuring, is otherwise consistent with 
applicable provisions of law, regulations, and Orders issued by the 
Commission, subject to the applicable conditions set forth herein. The 
NRC staff has also determined that Texas Genco LP is qualified to be a 
holder of the facility operating licenses for STPEGS, and to the extent 
that the transfer of Reliant's interest in STPNOC to Texas Genco LP 
results in an indirect transfer of the STPNOC license, the transfer 
will not affect the qualifications of STPNOC to be the licensed 
operator, and that the transfer of the licenses is otherwise consistent 
with applicable provisions of law, regulations, and Orders issued by 
the Commission, subject to the conditions set forth 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 regulations set forth in 10 CFR Chapter I; the facilities will 
operate in conformity with the application, the provisions of the Act, 
and the rules and regulations of the Commission; there is reasonable 
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 amendments will be in accordance with 10 CFR part 51 of the 
Commission's regulations and all applicable requirements have been 
satisfied.
    The findings set forth above are supported by a safety evaluation 
dated December 20, 2001.

III

    Accordingly, pursuant to sections 161b, 161i, and 184 of the Atomic 
Energy Act of 1954, as amended, 42 U.S.C. 2201(b), 2201(i), and 2234; 
and 10 CFR 50.80, it is hereby ordered that the indirect transfer of 
the licenses as described herein to CenterPoint Energy, Inc., and the 
direct transfer of the licenses as described herein to Texas Genco LP 
are approved, subject to the following conditions:
    (1) Texas Genco LP shall, prior to the completion of the direct 
transfer, provide to the Director of the Office of Nuclear Reactor 
Regulation satisfactory documentary evidence that Texas Genco LP has 
obtained the appropriate amount of insurance required of licensees 
under 10 CFR part 140 of the Commission's regulations.
    (2) Reliant shall continue to provide decommissioning funding 
assurance, to be held in decommissioning trusts for STPEGS, from the 
date of the indirect transfer until the date of any direct transfer to 
Texas Genco LP. Texas Genco LP shall provide decommissioning funding 
assurance, to be held in decommissioning trusts for STPEGS upon the 
direct transfer of the STPEGS licenses to Texas Genco LP, in an amount 
equal to or greater than the balance in the STPEGS decommissioning 
trusts immediately prior to the transfer. In addition, Texas Genco LP 
shall ensure that all contractual arrangements referred to in the 
application to obtain necessary decommissioning funds for STPEGS 
through a non-bypassable charge are executed and will be maintained 
until the decommissioning trusts are fully funded, or shall ensure that 
other mechanisms that provide equivalent assurance of decommissioning 
funding in accordance with the Commission's regulations are maintained.
    (3) The master decommissioning trust agreement for STPEGS, at the 
time the direct transfers are effected and thereafter, is subject to 
the following:
    a. The decommissioning trust agreement must be in a form acceptable 
to the NRC.
    b. With respect to the decommissioning trust funds, investments in 
the securities or other obligations of CenterPoint Energy, Inc., or its 
affiliates, successors, or assigns, shall be prohibited. Except for

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investments in funds tied to market indices or other non-nuclear sector 
mutual funds, investments in any entity owning one or more nuclear 
power plants are prohibited.
    c. The decommissioning trust agreement must provide that the 
trustee, investment advisor, or anyone else directing the investments 
made in the trusts shall adhere to the standards for such investments 
established by the Public Utility Commission of Texas (e.g., 16 Texas 
Administration Code Sec. 25.301).
    d. The decommissioning trust agreement must provide that except for 
ordinary administrative expenses, no disbursements or payments from the 
trusts shall be made by the trustee unless the trustee has first given 
the NRC 30 days prior written notice of such disbursement or payment. 
The decommissioning trust agreement shall further contain a provision 
that no disbursements or payments from the trusts shall be made if the 
trustee receives prior written notice of an objection from the 
Director, Office of Nuclear Reactor Regulation.
    e. The decommissioning trust agreement must provide that the 
agreement cannot be modified in any material respect without 30 days 
prior written notification to the Director, Office of Nuclear Reactor 
Regulation.
    (4) Reliant and Texas Genco LP shall take all necessary steps to 
ensure that the decommissioning trusts are maintained in accordance 
with the application, the requirements of this Order, and the related 
safety evaluation.
    (5) Texas Genco LP shall provide the Director, 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 
CenterPoint Energy, Inc., or its subsidiaries, to a proposed direct or 
indirect parent, or to any other affiliated company, facilities for the 
production of electric energy having a depreciated book value exceeding 
ten percent (10%) of such licensee's consolidated net utility plant, as 
recorded on Texas Genco LP's book of accounts.
    (6) Texas Genco LP shall inform the Director of the Office of 
Nuclear Reactor Regulation of the date of the closing of the direct 
transfer no later than two business days prior to such date. If the 
direct and indirect transfers of the licenses approved by this Order 
are not completed by December 31, 2002, this Order shall become null 
and void, provided, however, upon written application and for good 
cause shown, such date may in writing 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 licenses to 
reflect the subject direct license transfers are approved. The 
amendments shall be issued and made effective at the time the proposed 
direct license transfers are completed. It is hereby noted that the 
staff is also considering approving a transfer of the licenses to the 
extent held by CPL. Should the transfer of the licenses to the extent 
held by CPL take place prior to issuance of the amendments in the 
current case, the amendments approved here should reflect any 
conforming amendments approved and issued in connection with the CPL 
transfer.
    This Order is effective upon issuance.
    For further details with respect to this Order, see the initial 
application dated May 31, 2001, the supplemental submittals dated June 
14, August 13, October 16, and November 7, 2001, and the safety 
evaluation dated December 20, 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. Publicly available records will be accessible electronically 
from the Agencywide Documents Access and Management Systems (ADAMS) 
Public Electronic Reading Room on the internet at the NRC Web site, 
http://www.nrc.gov.

    Dated at Rockville, Maryland this 20th day of December, 2001.

    For the Nuclear Regulatory Commission.
Brian W. Sheron,
Acting Director, Office of Nuclear Reactor Regulation.
[FR Doc. 01-32059 Filed 12-28-01; 8:45 am]
BILLING CODE 7590-01-P