[Federal Register: October 16, 2000 (Volume 65, Number 200)]
 [Page 61204]
 From the Federal Register Online via GPO Access [wais.access.gpo.gov]



 [Docket Nos. 50-272, 50-311]

 In the Matter of PECO Energy Company (Salem Nuclear Generating
 Station, Units 1 and 2) Order Approving Application Regarding Proposed
 Corporate Restructuring


 PECO Energy Company (PECO) owns 42.59 percent of Salem Nuclear
 Generating Station, Units 1 and 2 (the facility) and in connection
 therewith is a co-holder of Facility Operating Licenses Nos. DPR-70 and
 DPR-75, which authorize possession, use, and operation of the facility.
 PSEG Nuclear LLC, another co-owner of the facility, is the licensed
 operator. The facility is located in Salem County, New Jersey.


 By application dated July 7, 2000, PECO requested approval of the
 proposed indirect transfer of the facility operating licenses to the
 extent now held by PECO to Exelon Corporation, to be formed in
 connection with the proposed merger of Unicom Corporation (Unicom), the
 parent of Commonwealth Edison Company and PECO. Supplemental
 information was provided by submittals dated July 13 and September 1,
 2000. Hereinafter, the July 7, 2000, application and supplemental
 information will be referred to collectively as the ``application.''
 Under the proposed merger, PECO will become a direct or indirect
 subsidiary of Exelon Corporation. The merger was previously the subject
 of an order dated August 3, 2000, by which the U. S. Nuclear Regulatory
 Commission approved the transfer of the Salem licenses, to the extent
 held by PECO, to Exelon Generation Company, LLC (EGC). EGC will be
 formed in connection with the merger as an indirect subsidiary of
 Exelon Corporation to acquire the generating assets of PECO and
 Commonwealth Edison Company. The August 3, 2000, order effectively
 allows PECO's Salem assets to be transferred to EGC. According to the
 application here, the transfer of these assets may be delayed beyond
 the closing of the merger. During this interim period, Exelon
 Corporation would be the direct parent of PECO as PECO continues to
 hold the Salem and other generating assets pending the receipt of
 necessary approvals to allow the generating assets to be transferred to
 EGC. Specifically, PECO would continue to hold a partial ownership
 interest in Salem, Units 1 and 2. PSEG Nuclear LLC would continue to be
 the sole operator of Salem, Units 1 and 2. The application does not
 involve any change with respect to the remaining ownership interests in
 the facility held by PSEG Nuclear LLC, Delmarva Power and Light
 Company, and Atlantic City Electric Company.
 By a separate application dated July 7, 2000, Commonwealth Edison
 Company requested approval of the indirect transfer of the facility
 operating licenses that it holds to Exelon Corporation, which would
 occur under circumstances similar to the above for PECO. That
 application is being addressed separately.

 Approval of the indirect transfer of the facility operating
 licenses was requested by PECO pursuant to 10 CFR 50.80. Notice of the
 request for approval and an opportunity for a hearing was published in
 the Federal Register on August 31, 2000 (65 FR 53046). The Commission
 received no comments or requests for hearing pursuant to such 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 by PECO, and other
 information before the Commission, the NRC staff has determined that
 the proposed corporate restructuring under which Exelon Corporation
 will become the parent of PECO will not affect the qualifications of
 PECO as a co-holder of the licenses described above, and that the
 indirect transfer of the 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 conditions set forth below.
 The findings set forth above are supported by a safety evaluation
 dated October 5, 2000.


 Accordingly, pursuant to Sections 161b, 161i, 161o, and 184 of the
 Atomic Energy Act of 1954, as amended, 42 U.S.C. Secs. 2201(b),
 2201(i), 2201(o), and 2234; and 10 CFR 50.80, It is hereby ordered that
 the application regarding the indirect license transfers related to the
 proposed corporate restructuring is approved, subject to the following

 (1) PECO shall provide the Director of the Office of Nuclear
 Reactor Regulation a copy of any application, at the time it is
 filed, to transfer (excluding grants of security interests or liens)
 from PECO to its proposed parent, or to any other affiliated
 company, facilities for the production, transmission, or
 distribution of electric energy having a depreciated book value
 exceeding ten percent (10%) of PECO's consolidated net utility
 plant, as recorded on PECO's books of account, provided, however,
 this condition shall apply only for so long as PECO holds a license
 issued pursuant to 10 CFR Part 50.
 (2) Should the proposed merger and restructuring not be
 completed by October 5, 2001, this Order shall become null and void,
 provided, however, upon written application and for good cause
 shown, such date may in writing be extended.
 This Order is effective upon issuance.

 For further details with respect to this Order, see the initial
 application dated July 7, 2000, and supplemental submittals dated July
 13 and September 1, 2000, and the safety evaluation dated October 5,
 2000, which are available for public inspection at the Commission's
 Public Document Room, 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

 Dated at Rockville, Maryland, this 5th day of October 2000.

 For the Nuclear Regulatory Commission.
  Samuel J. Collins,
 Director, Office of Nuclear Reactor Regulation
 [FR Doc. 00-26484 Filed 10-13-00; 8:45 am]