82 FR 18487 - In the Matter of Wolf Creek Nuclear Operating Corporation: Wolf Creek Generating Station, Unit 1

NUCLEAR REGULATORY COMMISSION

Federal Register Volume 82, Issue 74 (April 19, 2017)

Page Range		18487-18488
FR Document		2017-07894

The U.S. Nuclear Regulatory Commission (NRC) is issuing an order approving indirect license transfer of control of Renewed Facility Operating License No. NPF-42 for the Wolf Creek Generating Station (WCGS). The indirect transfer of control will result from the proposed merger of Great Plains Energy Incorporated (Great Plains) and Westar Energy, Inc. (Westar) pursuant to the terms of the merger agreement, with Westar merging and becoming a subsidiary of Great Plains. Wolf Creek Nuclear Operating Corporation will continue to be the operator of WCGS.

Federal Register, Volume 82 Issue 74 (Wednesday, April 19, 2017)

[Federal Register Volume 82, Number 74 (Wednesday, April 19, 2017)]
[Notices]
[Pages 18487-18488]
From the Federal Register Online [www.thefederalregister.org]
[FR Doc No: 2017-07894]

[[Page 18487]]

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NUCLEAR REGULATORY COMMISSION

[Docket No. 50-482; License No. NPF-42; NRC-2016-0234]

In the Matter of Wolf Creek Nuclear Operating Corporation: Wolf
Creek Generating Station, Unit 1

AGENCY: Nuclear Regulatory Commission.

ACTION: Indirect transfer of license; order.

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SUMMARY: The U.S. Nuclear Regulatory Commission (NRC) is issuing an
order approving indirect license transfer of control of Renewed
Facility Operating License No. NPF-42 for the Wolf Creek Generating
Station (WCGS). The indirect transfer of control will result from the
proposed merger of Great Plains Energy Incorporated (Great Plains) and
Westar Energy, Inc. (Westar) pursuant to the terms of the merger
agreement, with Westar merging and becoming a subsidiary of Great
Plains. Wolf Creek Nuclear Operating Corporation will continue to be
the operator of WCGS.

DATES: The Order was issued on April 7, 2017, and is effective for one
year.

ADDRESSES: Please refer to Docket ID NRC-2016-0234 when contacting the
NRC about the availability of information regarding this document. You
may obtain publicly-available information related to this document
using any of the following methods:
Federal Rulemaking Web site: Go to http://www.regulations.gov and search for Docket ID NRC-2016-0234. Address
questions about NRC dockets to Carol Gallagher; telephone: 301-415-
3463; email: Carol.Gallagher@nrc.gov. For technical questions, contact
the individual listed in the FOR FURTHER INFORMATION CONTACT section of
this document.
NRC's Agencywide Documents Access and Management System
(ADAMS): You may obtain publicly-available documents online in the
ADAMS Public Documents collection at http://www.nrc.gov/reading-rm/adams.html. To begin the search, select ``ADAMS Public Documents'' and
then select ``Begin Web-based ADAMS Search.'' For problems with ADAMS,
please contact the NRC's Public Document Room (PDR) reference staff at
1-800-397-4209, 301-415-4737, or by email to pdr.resource@nrc.gov. The
ADAMS accession number for each document referenced (if it is available
in ADAMS) is provided the first time that it is mentioned in this
document. The order was issued to the licensee in a letter dated April
7, 2017, and it is available in ADAMS under Accession No. ML17037D120).
NRC's PDR: You may examine and purchase copies of public
documents at the NRC's PDR, Room O1-F21, One White Flint North, 11555
Rockville Pike, Rockville, Maryland 20852.

FOR FURTHER INFORMATION CONTACT: Balwant K. Singal, Office of Nuclear
Reactor Regulation, U.S. Nuclear Regulatory Commission, Washington DC
20555-0001; telephone: 301-415-3016, email: Balwant.Singal@nrc.gov.

SUPPLEMENTARY INFORMATION: The text of the order is attached.

Dated at Rockville, Maryland, this 11th day of April 2017.

For the Nuclear Regulatory Commission.
Balwant K. Singal,
Senior Project Manager, Plant Licensing Branch IV, Division of
Operating Reactor Licensing, Office of Nuclear Reactor Regulation.

Attachment--Order Approving Indirect Transfer of License

United States of America

Nuclear Regulatory Commission

In the Matter of Wolf Creek Nuclear Operating Corporation; Wolf Creek
Generating Station, Unit 1 Dockets No. 50-482 License No. NPF-42 Order
Approving Indirect Transfer of License

Wolf Creek Nuclear Operating Corporation (WCNOC) is the holder of
the Renewed Facility Operating License (FOL) No. NPF-42 for the Wolf
Creek Generating Station, Unit 1 (WCGS) authorized to possess, use, and
operate WCGS. WCGS is located in Coffey County, Kansas.

II.

Pursuant to Section 184 of the Atomic Energy Act of 1954, as
amended (AEA), and Title 10 of the Code of Federal Regulations (10 CFR)
50.80, ``Transfer of licenses,'' WCNOC requested consent from the U.S.
Nuclear Regulatory Commission (NRC) to the indirect transfer of control
of Renewed FOL No. NPF-42 for the WCGS by application dated July 22,
2016 (Agencywide Documents Access and Management System (ADAMS)
Accession No. ML16208A250).
WCNOC is the licensed operator of WCGS and Kansas City Power &
Light Company (KCP&L), Kansas Gas and Electric Company (KG&E), and
Kansas Electric Power Cooperative, Inc. (KEPCO) are the three non-
operating owner licensees. KCP&L and KG&E each hold a 47 percent
undivided interest in WCGS and 47 percent of the stock of WCNOC and
KEPCO holds the remaining 6 percent interest. KCP&L is a subsidiary of
Great Plains Energy Incorporated (Great Plains) and KG&E is a
subsidiary of Westar Energy, Inc. (Westar). The indirect transfer of
control will result from the proposed merger of Great Plains and Westar
with Westar becoming a wholly-owned subsidiary of Great Plains. KCP&L
and KG&E will each continue to hold their respective 47 percent
interests in WCNOC and WCGS. KCP&L and KG&E will continue to operate as
separate electric utilities responsible for their pro rata shares of
the costs of operating WCGS and entitled to their pro rata shares of
the capacity, energy, and other energy products produced by WCGS. Great
Plains will indirectly own a combined interest in WCGS of 94 percent.
The remaining 6 percent ownership interest will continue to be held by
KEPCO. WCNOC will continue to be the operator of WCGS with the same
management team as in effect prior to the consummation of the proposed
merger.
In response to the submission of the indirect license transfer
application, the NRC published in the Federal Register a notice
entitled, ``Wolf Creek Generating Station; Consideration of Approval of
Transfer of License,'' on November 17, 2016 (81 FR 81176). In a letter
dated December 13, 2016 (ADAMS Accession No. ML17079A255), KEPCO
submitted a public comment in response to this notice, which stated, in
part, that:

The purpose of this letter is to clarify statements in the
Request [by WCNOC for NRC consent to the indirect transfer] about
KEPCO's ownership interest and to make clear that the Request was
not filed on behalf of all the owners of [WCNOC and WCGS].
. . . While KEPCO would continue to own 6% of [WCGS] and WCNOC,
WCNOC's assertion that KEPCO's ownership interests would be
unaffected is inaccurate. The nature of KEPCO's ownership interest
is more than the simple percentage; it was negotiated as part of an
overall structure where none of the three owners commanded the
majority necessary to unilaterally make important decisions. KEPCO's
6% interest as it currently exists provides KEPCO with substantial
influence over the financial and strategic planning for and the
oversight of [WCGS] and WCNOC. By contrast, in the post-merger world
one company would own 94% of [WCGS] and WCNOC through its affiliated
subsidiaries, which would undoubtedly affect how the two previously
independent owners would manage their interests in and control of
[WCGS] (and WCNOC).

The NRC staff reviewed KEPCO's letter as part of its review of the
WCNOC request for consent to the proposed indirect license transfer.
The

[[Page 18488]]

staff notes that, in its application, WCNOC stated that:

The remaining 6.0% ownership interest in WCGS held by [KEPCO] is
unaffected by the Merger.

The proposed merger will result in one entity, Great Plains,
indirectly owning a combined interest in WCGS of 94 percent, as opposed
to two entities, Great Plains and Westar, each indirectly owning a 47
percent interest in WCGS. This does not affect the fact that, in either
case, KEPCO indirectly owns a 6 percent interest in WCGS. Whether, as
provided by KEPCO, the proposed merger will decrease KEPCO's influence
over the financial and strategic planning for WCGS is not relevant to
the NRC's review of the proposed indirect license transfer application
under AEA Section 184 and 10 CFR 50.80. The NRC's authority with
respect to license transfer applications is limited to evaluating
financial qualification, decommissioning funding assurance, management
and technical support organization, operating organization, foreign
ownership, control, or domination, and nuclear insurance and indemnity
issues as they relate to the public health and safety and the common
defense and security. The relevant NRC regulatory requirements do not
apply to strategic business or other corporate decisions and
considerations. Accordingly, the NRC staff concludes that the concerns
identified by KEPCO do not impact its conclusion regarding the proposed
indirect license transfer application.
Under 10 CFR 50.80, no license, or any right thereunder, shall be
transferred, either directly or indirectly, through transfer of control
of the license, unless the NRC gives its consent in writing. Upon
review of the information in the application, and other information
before the Commission, the NRC staff has determined that WCNOC is
qualified to hold the license following the proposed merger of Great
Plains and Westar with Westar becoming a wholly-owned subsidiary of
Great Plains. The NRC staff has also determined that the proposed
indirect license transfer is otherwise consistent with applicable
provisions of law, regulations, and orders issued by the Commission
pursuant thereto.
The findings set forth above are supported by an NRC safety
evaluation dated April 7, 2017, and available under ADAMS Accession No.
ML17037D120.

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 the application regarding
the proposed indirect license transfer is approved.
IT IS FURTHER ORDERED that, after receipt of all required
regulatory approvals of the proposed indirect license transfer, WCNOC
shall inform the Director of the Office of Nuclear Reactor Regulation
in writing of such receipt, and of the date of closing of the transfer,
no later than 5 business days prior to the date of the closing of the
indirect license transfer. Should the proposed indirect license
transfer not be completed within 1 year of this Order's date of
issuance, this Order shall become null and void, provided, however,
upon written application and for good cause shown, such date may be
extended by order.
This Order is effective upon issuance.
For further details with respect to this Order, see the application
dated July 22, 2016 (ADAMS Accession No. ML16208A250), and the NRC
Safety Evaluation dated April 7, 2017 (ADAMS Accession No.
ML17037D120), which are available for public inspection at the
Commission's Public Document Room (PDR), located at One White Flint
North, Public File Area O1 F21, 11555 Rockville Pike (first floor),
Rockville, Maryland. Publicly available documents created or received
at the NRC are accessible electronically through ADAMS in the NRC
Library at http://www.nrc.gov/reading-rm/adams.html. Persons who do not
have access to ADAMS, or who encounter problems in accessing the
documents located in ADAMS, should contact the NRC PDR reference staff
by telephone at 1-800-397-4209 or 301-415-4737, or by email to
pdr.resource@nrc.gov.

Dated at Rockville, Maryland this 7th day of April 2017.
For the Nuclear Regulatory Commission,
Mary Jane Ross-Lee,
Acting Director, Division of Operating Reactor Licensing, Office of
Nuclear Reactor Regulation.
[FR Doc. 2017-07894 Filed 4-18-17; 8:45 am]
BILLING CODE 7590-01-P

18488 Federal Register / Vol. 82, No. 74 / Wednesday, April 19, 2017 / Notices

staff notes that, in its application, Energy Act of 1954, as amended, 42 SECURITIES AND EXCHANGE
WCNOC stated that: U.S.C. 2201(b), 2201(i), and 2234; and COMMISSION
The remaining 6.0% ownership interest in 10 CFR 50.80, IT IS HEREBY ORDERED
WCGS held by [KEPCO] is unaffected by the that the application regarding the [Release No. 34–80450; File No. SR–LCH
Merger. proposed indirect license transfer is SA–2017–003]
The proposed merger will result in approved.
one entity, Great Plains, indirectly IT IS FURTHER ORDERED that, after Self-Regulatory Organizations; LCH
owning a combined interest in WCGS of receipt of all required regulatory SA; Notice of Filing of Proposed Rule
94 percent, as opposed to two entities, approvals of the proposed indirect Change Relating to Recovery Risk
Great Plains and Westar, each indirectly license transfer, WCNOC shall inform Margin
owning a 47 percent interest in WCGS. the Director of the Office of Nuclear April 13, 2017.
This does not affect the fact that, in Reactor Regulation in writing of such
either case, KEPCO indirectly owns a 6 receipt, and of the date of closing of the Pursuant to Section 19(b)(1) of the
percent interest in WCGS. Whether, as transfer, no later than 5 business days Securities Exchange Act of 1934
provided by KEPCO, the proposed prior to the date of the closing of the (‘‘Act’’) 1 and Rule 19b–4 thereunder 2
merger will decrease KEPCO’s influence indirect license transfer. Should the notice is hereby given that on April 4,
over the financial and strategic planning 2017, Banque Centrale de
proposed indirect license transfer not be
for WCGS is not relevant to the NRC’s Compensation, which conducts
completed within 1 year of this Order’s
review of the proposed indirect license business under the name LCH SA (‘‘LCH
date of issuance, this Order shall
transfer application under AEA Section SA’’), filed with the Securities and
184 and 10 CFR 50.80. The NRC’s become null and void, provided,
however, upon written application and Exchange Commission (‘‘Commission’’)
authority with respect to license transfer the proposed rule change described in
applications is limited to evaluating for good cause shown, such date may be
extended by order. Items I, II, and III below, which Items
financial qualification,
have been prepared primarily by LCH
decommissioning funding assurance, This Order is effective upon issuance.
SA. The Commission is publishing this
management and technical support For further details with respect to this notice to solicit comments on the
organization, operating organization, Order, see the application dated July 22,
foreign ownership, control, or proposed rule change from interested
2016 (ADAMS Accession No. persons.
domination, and nuclear insurance and
ML16208A250), and the NRC Safety
indemnity issues as they relate to the I. Clearing Agency’s Statement of the
Evaluation dated April 7, 2017 (ADAMS
public health and safety and the Terms of Substance of the Proposed
Accession No. ML17037D120), which
common defense and security. The Rule Change
relevant NRC regulatory requirements are available for public inspection at the
do not apply to strategic business or Commission’s Public Document Room LCH SA is proposing to revise its
other corporate decisions and (PDR), located at One White Flint North, margin methodology with respect to
considerations. Accordingly, the NRC Public File Area O1 F21, 11555 credit default swaps (‘‘CDS’’) in the
staff concludes that the concerns Rockville Pike (first floor), Rockville, Reference Guide: CDS Margin
identified by KEPCO do not impact its Maryland. Publicly available documents Framework. The proposed rule change
conclusion regarding the proposed created or received at the NRC are will (i) eliminate the recovery rate risk
indirect license transfer application. accessible electronically through charge as a component of the margin
Under 10 CFR 50.80, no license, or ADAMS in the NRC Library at http:// methodology as it applies to index CDS
any right thereunder, shall be www.nrc.gov/reading-rm/adams.html. (ii) correct a hyperlink and add a cross
transferred, either directly or indirectly, Persons who do not have access to reference and hyperlink to the general
through transfer of control of the ADAMS, or who encounter problems in inputs considered by LCH SA in
license, unless the NRC gives its consent accessing the documents located in constructing the CDS pricing for
in writing. Upon review of the ADAMS, should contact the NRC PDR European and US dollar denominated
information in the application, and reference staff by telephone at 1–800–
other information before the contracts.
397–4209 or 301–415–4737, or by email
Commission, the NRC staff has to pdr.resource@nrc.gov. II. Clearing Agency’s Statement of the
determined that WCNOC is qualified to Purpose of, and Statutory Basis for, the
hold the license following the proposed Dated at Rockville, Maryland this 7th day
of April 2017.
Proposed Rule Change
merger of Great Plains and Westar with
Westar becoming a wholly-owned For the Nuclear Regulatory Commission, In its filing with the Commission,
subsidiary of Great Plains. The NRC Mary Jane Ross-Lee, LCH SA included statements concerning
staff has also determined that the Acting Director, Division of Operating Reactor the purpose of and basis for the
proposed indirect license transfer is Licensing, Office of Nuclear Reactor proposed rule change and discussed any
otherwise consistent with applicable Regulation. comments it received on the proposed
provisions of law, regulations, and [FR Doc. 2017–07894 Filed 4–18–17; 8:45 am] rule change. The text of these statements
orders issued by the Commission BILLING CODE 7590–01–P may be examined at the places specified
pursuant thereto. in Item IV below. LCH SA has prepared
jstallworth on DSK7TPTVN1PROD with NOTICES

The findings set forth above are summaries, set forth in sections A, B,
supported by an NRC safety evaluation and C below, of the most significant
dated April 7, 2017, and available under aspects of these statements.
ADAMS Accession No. ML17037D120.
III.
Accordingly, pursuant to Sections 1 15 U.S.C. 78s(b)(1).
161b, 161i, and 184 of the Atomic 2 17 CFR 240.19b–4.

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Document Created: 2018-11-14 09:43:37
Document Modified: 2018-11-14 09:43:37

Category		Regulatory Information
Collection		Federal Register
sudoc Class		AE 2.7: GS 4.107: AE 2.106:
Publisher		Office of the Federal Register, National Archives and Records Administration
Section		Notices
Action		Indirect transfer of license; order.
Dates		The Order was issued on April 7, 2017, and is effective for one year.
Contact		Balwant K. Singal, Office of Nuclear Reactor Regulation, U.S. Nuclear Regulatory Commission, Washington DC 20555-0001; telephone: 301-415-3016, email: [email protected]
FR Citation		82 FR 18487