[Federal Register Volume 67, Number 212 (Friday, November 1, 2002)]
[Notices]
[Pages 66672-66673]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 02-27862]


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NUCLEAR REGULATORY COMMISSION

[Docket No. 50-443]


North Atlantic Energy Service Corporation, et al.; (Seabrook 
Station, Unit No. 1); Order Approving Transfer of License and 
Conforming Amendment

I

    Facility Operating License No. NPF-86 authorizes the operation of 
Seabrook Station, Unit No. 1 (Seabrook Station or the facility), at 
steady-state power levels not in excess of 3,411 megawatts thermal. The 
facility is located in Seabrook Township, Rockingham County, New 
Hampshire, on the southeast coast of the State of New Hampshire. The 
license authorizes North Atlantic Energy Service Corporation (NAESCO) 
to possess, use, and operate the facility, and certain other entities 
discussed below to possess the facility.

II

    Under cover of a letter dated May 17, 2002, NAESCO, on its own 
behalf and on the behalf of certain licensees owning interests in 
Seabrook Station--North Atlantic Energy Corporation (NAEC), The United 
Illuminating Company, Great Bay Power Corporation, New England Power 
Company, The Connecticut Light and Power Company, Canal Electric 
Company, Little Bay Power Corporation, and New Hampshire Electric 
Cooperative, Inc.--and FPL Energy Seabrook, LLC (FPLE Seabrook) jointly 
submitted an application requesting approval of the transfer of 
Facility Operating License No. NPF-86 for Seabrook Station, to the 
extent held by the foregoing licensees, to FPLE Seabrook. The 
applicants also requested approval of a conforming amendment to reflect 
the transfer. The application was supplemented by submittals dated June 
28, July 1, July 24, August 29, and October 11, 2002 (collectively 
referred to as the ``application'' herein unless otherwise indicated).
    FPLE Seabrook is an indirect, wholly owned subsidiary of FPL 
Energy, LLC (FPLE), which is a wholly owned subsidiary of FPL Group 
Capital Inc., which, in turn, is a wholly owned subsidiary of FPL Group 
Inc. (FPL Group). According to the application, the current licensees 
owning interests in the facility listed above will sell their ownership 
interests in Seabrook Station to FPLE Seabrook. In addition, NAESCO 
will transfer its operating authority under the license to FPLE 
Seabrook which will assume title to the acquired interests in the 
facility and operate and maintain Seabrook Station. While the transfer 
of operating authority and the ownership interests identified in the 
application is expected to occur at one time, it is possible that 
certain ownership interests proposed to be transferred will be 
transferred in a second phase, depending upon the timing of the receipt 
of other regulatory approvals. Current licensees which own interests in 
Seabrook Station but are not involved in this license transfer are 
Massachusetts Municipal Wholesale Electric Company, Taunton Municipal 
Lighting Plant, and Hudson Light and Power Department, all of which 
will remain licensees.
    The conforming license amendment would remove from the license 
references to NAESCO and the licensees transferring their interests in 
the facility and add references to FPL Energy Seabrook, LLC, as a 
licensee, and make other administrative changes to reflect the proposed 
transfer.
    The application requested approval of the subject transfer of the 
license and a conforming license amendment pursuant to 10 CFR 50.80 and 
50.90. Notice of the requests for approval and an opportunity to 
request a hearing or submit written comments was published in the 
Federal Register on June 14, 2002 (67 FR 40972). The Commission 
received no requests for hearing or written comments.
    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. After 
reviewing the information submitted in the application and other 
information before the Commission, and relying upon the representations 
and agreements contained in the application, the Nuclear Regulatory 
Commission (NRC) staff has determined that FPLE Seabrook is qualified 
to be the holder of the license to the extent proposed in the 
application, and that the transfer of the license to FPLE Seabrook is 
otherwise consistent with applicable provisions of law, regulations, 
and orders issued by the Commission, subject to the conditions set 
forth below. The NRC staff has further found that the application for 
the proposed license amendment 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 facility 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 amendment 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 amendment will not be inimical to the common 
defense and security or the health and safety of the public; and the 
issuance of the proposed license amendment 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 the staff's safety evaluation dated October 25, 2002.

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

[[Page 66673]]

the transfer of the license as described herein to FPLE Seabrook is 
approved, subject to the following conditions:
    (1) Before the transfer of operating authority and completion of 
the sale and transfer of any interest in Seabrook Station to FPLE 
Seabrook, FPLE Seabrook shall provide the Director of the Office of 
Nuclear Reactor Regulation satisfactory documentary evidence that FPLE 
Seabrook has obtained the appropriate amount of insurance required of 
licensees under 10 CFR part 140 of the Commission's regulations.
    (2) On the closing date(s) of the transfer of any ownership 
interests in Seabrook Station covered by this Order, FPLE Seabrook 
shall obtain from each respective transferring owner all of the 
accumulated decommissioning trust funds for the facility, and ensure 
the deposit of such funds and additional funds, if necessary, into a 
decommissioning trust or trusts for Seabrook Station established by 
FPLE Seabrook, such that the amount of funds deposited meets or exceeds 
the amount required under 10 CFR 50.75 with respect to the interest in 
Seabrook Station FPLE Seabrook acquires on such dates(s).
    (3) With respect to the decommissioning trust(s) established by 
FPLE Seabrook,
    (i) The decommissioning trust agreement must be in a form 
acceptable to the NRC.
    (ii) Investments in the securities or other obligations of FPL 
Group Inc. or its affiliates, 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.
    (iii) The decommissioning trust agreement must provide that no 
disbursements or payments from the trust(s), other than for ordinary 
administrative expenses, shall be made by the trustee unless the 
trustee has first given the NRC 30 days prior written notice of 
payment. The decommissioning trust agreement shall further provide that 
no disbursements or payments from the trust(s) shall be made if the 
trustee receives prior written notice of objection from the Director of 
the Office of Nuclear Reactor Regulation.
    (iv) The decommissioning trust agreement must provide that the 
agreement cannot be amended in any material respect without 30 days 
prior written notification to the Director of the Office of Nuclear 
Reactor Regulation.
    (v) The appropriate section of the decommissioning trust agreement 
shall provide that the trustee, investment advisor, or anyone else 
directing the investments made in the trust(s) 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) FPLE Seabrook shall take all necessary steps to ensure that the 
decommissioning trust(s) are maintained in accordance with the 
application and the requirements of this Order, and consistent with the 
safety evaluation supporting this Order.
    (5) FPLE Seabrook shall take no action to cause FPL Group Capital, 
Inc. or its parent companies to void, cancel, or modify the Support 
Agreement to provide funding of up to $110 million for FPLE Seabrook as 
represented in the application without prior written consent of the 
Director of the Office of Nuclear Reactor Regulation.
    (6) After receipt of all required regulatory approvals of the 
transfer of the subject interests in Seabrook Station, NAESCO and FPLE 
Seabrook shall inform the Director of the Office of Nuclear Reactor 
Regulation in writing of such receipt within 5 business days, and of 
the closing date(s) of the transfer no later than 2 business days prior 
to the date of closing. If the transfer of the license as approved by 
this Order is not completed by October 31, 2003, this Order shall 
become null and void, provided, however, on written application and for 
good cause shown, this date may be extended in writing.
    It is further ordered that, consistent with 10 CFR 2.1315(b), 
changes to the license, as indicated in Enclosure 2 to the cover letter 
forwarding this Order, to conform the license to reflect the subject 
license transfer are approved. An amendment, or amendments should the 
transfer of the interests in Seabrook Station occur in more than one 
phase, incorporating the approved changes as appropriate to reflect the 
transfer of interests occurring, shall be issued and made effective at 
the time the proposed transfer of interests in the facility occurs.
    This Order is effective upon issuance.
    For further details with respect to this Order, see the initial 
application dated May 17, 2002, the supplemental letters dated June 28, 
July 1, July 24, August 29, and October 11, 2002, and the safety 
evaluation dated October 25, 2002, which are available for public 
inspection at the Commission's Public Document Room, located at One 
White Flint North, 11555 Rockville Pike (first floor), Rockville, 
Maryland, and accessible electronically through the ADAMS Public 
Electronic Reading Room link at the NRC Web site (http://www.nrc.gov).

    Dated at Rockville, Maryland, this 25th day of October 2002.

    For the Nuclear Regulatory Commission.
Samuel J. Collins,
Director, Office of Nuclear Reactor Regulation.
[FR Doc. 02-27862 Filed 10-31-02; 8:45 am]
BILLING CODE 7590-01-P