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NRC NEWS
U. S. NUCLEAR REGULATORY COMMISSION |
| Office of Public Affairs |
Telephone: 301/415-8200 |
| Washington, DC 20555-001 |
E-mail: opa@nrc.gov |
No. 96-89 FOR IMMEDIATE RELEASE
(Monday, June 24, 1996)
NRC STAFF REMINDS LICENSEES OF REQUIREMENTS TO GET APPROVAL
FOR LICENSE TRANSFER, INFORM AGENCY ABOUT DECOMMISSIONING FUNDS
The Nuclear Regulatory Commission staff has reminded nuclear power
plant licensees of their obligation to obtain prior written consent from
the NRC for any changes that would constitute transfer of their NRC
license.
The staff has further told them they should promptly report any new
information concerning their financial qualifications and decommissioning
funding that could have a significant implication for public health and
safety.
These reminders are in an NRC administrative letter sent June 21 to
all holders of nuclear power plant operating licenses or construction
permits. The letter results from an NRC staff action plan launched
earlier this year in response to deregulation of the electric power
industry.
The administrative letter notes that increased competition
resulting from deregulation may induce power companies to split their
systems into functional areas, forming separate subsidiaries for
electrical generation. Other possible scenarios include utility
restructuring, mergers or corporate spinoffs.
NRC's concern is that licensed entities remaining after such
reorganizations must have access to adequate funds for safe reactor
operation and for decommissioning.
A copy of the administrative letter is attached.
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Attachment
. UNITED STATES
NUCLEAR REGULATORY COMMISSION
OFFICE OF NUCLEAR REACTOR REGULATION
WASHINGTON, D.C. 20555-0001
June 21, 1996
NRC ADMINISTRATIVE LETTER 96-02: LICENSEE RESPONSIBILITIES RELATED TO
FINANCIAL QUALIFICATIONS
Addressees
All holders of operating licenses or construction permits for nuclear
power reactors.
Purpose
The U.S. Nuclear Regulatory Commission (NRC) is issuing this
administrative letter to remind addressees of their ongoing
responsibility to inform, and obtain advance approval from the NRC for
any changes that would constitute a transfer of the license, directly or
indirectly, through transfer of control of the NRC license to any person
pursuant to Section 50.80 of Title 10 of the Code of Federal Regulations
(10 CFR 50.80), "Transfer of licenses." Additionally, this
administrative letter reminds addressees of their responsibility to
assure that information regarding licensee financial qualifications and
decommissioning funding assurance that may have a significant implication
for public health and safety is promptly reported to the NRC. Lastly,
this administrative letter points out the desirability of providing the
NRC advance notice of any plans for such changes so that staff review
resources can be allocated and NRC decisions are not unnecessarily
delayed. This administra- tive letter does not transmit or imply any new
or changed requirement or staff positions. The submittal of advance
notice of your planning in this area is strictly voluntary; therefore, no
specific action or written response is required.
Background
The electric utility industry is entering a period of economic
deregulation and restructuring which will lead to increased competition
in the industry. Increasing competition may force integrated power
systems to separate (or "disaggregate") their systems into functional
areas. Thus, some licensees may divest electrical generation assets from
transmission and distribution assets by forming separate companies or
separate subsidiaries for electrical generation within larger holding
companies. Disaggregation may involve utility restructuring, mergers,
and corporate spinoffs that lead to changes in owners or operators of
licensed power reactors and other material changes.
The NRC concern is that the remaining licensed entities have access to
adequate funds, such that funds are available for safe reactor operation
and decommissioning. The NRC has distinguished between an "electric
utility" and other licensees in this regard. As defined in 10 CFR 50.2,
an "electric utility" is an entity that generates or distributes
electricity for which the costs are recovered by rates set by the entity
or by a separate regulatory authority. Rate regulators allow an electric
utility to recover prudently incurred costs of generating, transmitting,
and distributing electric services. Corporate restructuring that changes
the "electric utility" status of a power reactor licensee or otherwise
alters the basis under which a licensee received an operating license for
a power reactor should be brought to NRC attention in a timely fashion.
Discussion
This administrative letter reminds all power reactor licensees of their
ongoing obligation to seek and obtain prior written consent from the NRC
for any changes that would constitute transfer of the NRC license,
directly or indirectly, through transfer of control of the license
pursuant to 10 CFR 50.80 and Section 184 of the Atomic Energy Act as
amended. In addition, licensees should assure that information regarding
their financial qualifications and decommissioning funding assurance that
may have a significant implication for public health and safety is
promptly reported to the NRC.
The NRC has considered mergers, the formation of holding companies, and
the outright sales of facilities, or portions of facilities, to require
NRC notification and prior approval in accordance with 10 CFR 50.80 so as
to ensure that the transferee is appropriately qualified. For example,
the NRC determines whether the surviving organization will remain an
"electric utility" as defined in 10 CFR 50.2. For sales of interests in
power reactors, the NRC reviews are similar to those for mergers or
formation of holding companies.
While some restructuring plans occur with little warning, many are
anticipated well in advance of the desired implementation date.
Licensees should consider providing advance notification of such plans to
the NRC so that the staff can schedule the appropriate resources for
review. Because the number of staff
reviews in this area are expected to increase significantly in the
future, licensees that wait until shortly before a decision is needed may
find the staff unable to meet their desired schedule.
To address changes that may result from economic deregulation, the NRC
issued, on April 8, 1996, an Advance Notice of Proposed Rulemaking (61 FR
15427) that seeks comment on deregulation issues as they may affect NRC
decommissioning funding assurance requirements. The NRC has also
developed an Action Plan that outlines additional steps the NRC intends
to take to respond to economic deregulation of its power reactor
licensees. Until these actions are com- plete, our current regulations
are governing. However, you should be aware that the NRC staff will
consult with the Commission when any new or unusual restructurings alter
your original licensing basis.
This administrative letter requires no specific action or written
response. If you have any questions about this letter, please contact
one of the persons listed below or the appropriate Office of Nuclear
Reactor Regulation (NRR) project manager.
signed by
Brian K. Grimes, Acting Director
Division of Reactor Program Management
Office of Nuclear Reactor Regulation
Contacts: Robert Wood, NRR
(301) 415-1255
Internet:rsw@nrc.gov
Bill Lambe, NRR
(301) 415-1277
Internet:wml@nrc.gov
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