[Federal Register: March 16, 1999 (Volume 64, Number 50)]
[Notices]               
[Page 13043-13044]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr16mr99-103]

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NUCLEAR REGULATORY COMMISSION

    Baltimore Gas and Electric Company (Calvert Cliffs Nuclear Power 
Plant, Unit Nos. 1 and 2 and the Independent Spent Fuel Storage 
Installation)
[Docket Nos. 50-317, 50-318, and 72-8]

 
Order Approving Application Regarding Restructuring of Baltimore 
Gas and Electric Company

I

    Baltimore Gas and Electric Company (BGE) is the licensee for 
Calvert Cliffs Nuclear Power Plant, Unit Nos. 1 and 2, and the 
associated Independent Spent Fuel Storage Installation (ISFSI). BGE has 
the exclusive responsibility for the construction, operation, and 
maintenance of Calvert Cliffs Nuclear Power Plant, Unit Nos. 1 and 2, 
and the ISFSI, as reflected in Operating Licenses Nos. DPR-53 and DPR-
69, and Materials License No. SNM-2505 issued by the U.S. Nuclear 
Regulatory Commission (NRC or the Commission) on July 31, 1974, 
November 30, 1976, and November 25, 1992, respectively. The facility is 
located on the western shore of the Chesapeake Bay, in Calvert County, 
Maryland.

II

    Under cover of a letter dated November 20, 1998, BGE submitted an 
application, which was supplemented by letter dated January 8, 1999, 
for approval by the Commission, pursuant to 10 CFR 50.80 and 10 CFR 
72.50, regarding a proposed corporate restructuring action that would 
result in the indirect transfer of the operating licenses for the 
Calvert Cliffs Nuclear Power Plant, Unit Nos. 1 and 2, and the 
associated ISFSI. Under the proposed restructuring, BGE would form, and 
become a wholly owned subsidiary of, a new holding company. Current 
stockholders of BGE common stock would become stockholders of the new 
holding company's common stock. BGE would continue to directly hold the 
licenses following the restructuring.
    According to the application, BGE will continue to be an ``electric 
utility'' as defined in 10 CFR 50.2, as a wholly owned subsidiary of 
the new holding company. In addition, adoption of the new holding 
company structure will not affect BGE's management of nuclear 
operations or BGE's technical qualifications. The restructuring will 
involve no significant change in the personnel who operate and maintain 
the Calvert Cliffs Nuclear Power Plant and the ISFSI.
    A Notice of Consideration of Approval of Application Regarding 
Proposed Corporate Restructuring was published in the Federal Register 
on January 8, 1999 (64 FR 1244).
    Under 10 CFR 50.80 and 10 CFR 72.50, no license 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 submitted in the application of November 20, 
1998, as supplemented by letter dated January 8, 1999, the NRC staff 
has determined that the restructuring of BGE by establishment of a 
holding company will not affect the qualifications of BGE as the holder 
of licenses for Calvert Cliffs Nuclear Power Plant, Unit Nos. 1 and 2, 
and as the holder of the license for the ISFSI, and that the transfer 
of control of the licenses, to the extent effected by the proposed 
restructuring, is otherwise consistent with applicable provisions of 
law, regulations, and orders issued by the Commission, subject to the 
conditions set forth herein. These findings are supported by a safety 
evaluation dated March 8, 1999.

III

    Accordingly, pursuant to Sections 161b, 161i, 161o, and 184 of the 
Atomic Energy Act of 1954, as amended, 42 USC Secs. 2201(b), 2201(i), 
2201(o), and 2234, 10 CFR 50.80, and 10 CFR 72.50, it is hereby ordered 
that the application regarding the proposed restructuring of BGE by the 
establishment of a holding company is approved, subject to the 
following: (1) BGE shall provide the Director, Office of Nuclear 
Reactor Regulation, and the Director, Office of Nuclear Material Safety 
and Safeguards, a copy of any application, at the time it is filed, to 
transfer (excluding grants of security interests or liens) from BGE to

[[Page 13044]]

its proposed parent, or to any other affiliated company, facilities for 
production, transmission, or distribution of electric energy having a 
depreciated book value exceeding 10 percent (10%) of BGE's consolidated 
net utility plant as recorded on its books of account; and (2) should 
the restructuring of BGE, as described herein, not be completed by 
March 1, 2000, this Order shall become null and void, provided, 
however, on application and for good cause shown, such date may be 
extended.
    This Order is effective upon issuance.
    For further details with respect to this action, see the 
application dated November 20, 1998, and supplement dated January 8, 
1999, which are available for public inspection at the Commission's 
Public Document Room, the Gelman Building, 2120 L Street, NW., 
Washington, D.C., and at the local public document room located at the 
Calvert County Library, Prince Frederick, Maryland 20678.

    Dated at Rockville, Maryland this 8th day of March 1999.

    For the Nuclear Regulatory Commission.
Samuel J. Collins,
Director, Office of Nuclear Reactor Regulation.
Carl J. Paperiello,
Director, Office of Nuclear Material Safety and Safeguards.
[FR Doc. 99-6348 Filed 3-15-99; 8:45 am]
BILLING CODE 7590-01-P