In the Matter of Central Maine Power Company, (Millstone Nuclear Power Station, Unit 3) Order Approving Application Regarding the Restructuring of Central Maine Power Company by Establishment of a Holding Company

NUCLEAR REGULATORY COMMISSION

[Docket No. 50-423]

In the Matter of Central Maine Power Company, (Millstone Nuclear

Power Station, Unit 3) Order Approving Application Regarding the

Restructuring of Central Maine Power Company by Establishment of a

Holding Company

I

Central Maine Power Company (CMP), a 2.5 percent owner of the

Millstone Nuclear Power Station, Unit 3 (Millstone Unit 3), one of the

13 other owners of Millstone Unit 3, is a co-holder of Facility

Operating License No. NPF-49 issued by the U.S. Nuclear Regulatory

Commission (NRC) pursuant to Part 50 of Title 10 of the Code of Federal

Regulations (10 CFR Part 50) on January 31, 1986. Under this license,

Northeast Nuclear Energy Company (NNECO), has the exclusive authority

to operate Millstone Unit 3. Millstone Unit 3 is located in New London

County, Connecticut.

II

By an application dated March 4, 1998, CMP, by and through its

counsel, Morgan, Lewis, and Bockius, requested consent pursuant to 10

CFR 50.80 regarding the proposed restructuring of CMP. Under the

restructuring, CMP would become a wholly owned subsidiary of a newly

created holding company but would continue to hold its 2.5 percent

ownership interest in Millstone Unit 3. No direct transfer of the

license would occur. NNECO, which is not involved in the proposed

transaction, would continue to be the licensed operator for Millstone

Unit 3. The holders of CMP common stock would automatically become

holders of common stock of the new holding company on a share-for-share

basis, according to the application.

Notice of this application for consent was published in the Federal

Register on April 24, 1998 (63 FR 20434); and an Environmental

Assessment and Finding of No Significant Impact was published in the

Federal Register on May 4, 1998 (63 FR 24576).

Under 10 CFR 50.80, 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 dated March 4, 1998, the NRC

staff has determined that the proposed restructuring of CMP by creation

of a holding company will not

[[Page 32252]]

affect the qualifications of CMP as a holder of Facility Operating

License No. NPF-49, and that the transfer of control of the license, 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 June 2, 1998.

III

Accordingly, pursuant to Sections 161b, 161i, 161o, and 184 of the

Atomic Energy Act of 1954, as amended; 42 U.S.C. Subsections 2201(b),

2201(i), 2201(o), and 2234; and 10 CFR 50.80, it is hereby ordered that

the Commission approves the application regarding the proposed

restructuring of CMP subject to the following: (1) CMP 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 CMP 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 10 percent (10%) of CMP's consolidated net utility plant, as

recorded on CMP's books of account; and (2) should the restructuring of

CMP not be completed by December 31, 1998, 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.

IV

By July 13, 1998, any person adversely affected by this Order may

file a request for a hearing with respect to issuance of the Order. Any

person requesting a hearing shall set forth with particularity how that

interest is adversely affected by this Order and shall address the

criteria set forth in 10 CFR 2.714(d).

If a hearing is to be held, the Commission will issue an order

designating the time and place of such hearing.

The issue to be considered at any such hearing shall be whether

this Order should be sustained.

Any request for a hearing must be filed with the Secretary of the

Commission, U.S. Nuclear Regulatory Commission, Washington, DC 20555-

0001, Attention: Rulemakings and Adjudications Staff, or may be

delivered to the Commission's Public Document Room, The Gelman

Building, 2120 L Street, NW., Washington, DC by the above date. Copies

should be also sent to the Office of the General Counsel and to the

Director, Office of Nuclear Reactor Regulation, U.S. Nuclear Regulatory

Commission, Washington, DC 20555-0001; Lillian M. Cuoco, Esq.,

Northeast Utilities Service Company, P.O. Box 270, Hartford,

Connecticut, 06106-5127, Senior Nuclear Counsel to NNECO; and to Kevin

P. Gallen, Esq., Morgan, Lewis, and Bockius, 1800 M Street, NW.,

Washington, DC 20036-5869, Counsel for CMP.

For further details with respect to this action, see the

application for approval regarding the corporate restructuring dated

March 4, 1998, the NRC staff's Safety Evaluation dated 1998, and

Environmental Assessment and Finding of No Significant Impact dated

April 24, 1998, which are available for public inspection at the

Commission's Public Document Room, The Gelman Building, 2120 L Street,

NW., Washington, DC, and at the local public document room located at

the Learning Resources Center, Three Rivers Community-Technical

College, 574 New London Turnpike, Norwich, Connecticut, and at the

Waterford Library, ATTN: Vince Juliano, 49 Rope Ferry Road, Waterford,

Connecticut.

Dated at Rockville, Maryland, this 2nd day of June 1998.

For the Nuclear Regulatory Commission.

Samuel J. Collins,

Director, Office of Nuclear Reactor Regulation.

[FR Doc. 98-15641 Filed 6-11-98; 8:45 am]

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