SUPPLEMENTARY INFORMATION:

The text of the Order is attached.

Authority:42 U.S.C. 2011 et seq.

Attachment—Order Approving the Direct Transfer of License

United States of America

Nuclear Regulatory Commission

In the Matter of STP Nuclear Operating Company, South Texas Project, Units 1 and 2 and) Docket Nos. 50-498. 50-499, and 72-1041 the Associated Independent Spent Fuel Storage Installation) Renewed License Nos. NPF-76 and NPF-80

Second Extension of Order Approving Direct Transfer of License

I.

STP Nuclear Operating Company (STPNOC) is the licensed operator, and the City of San Antonio, Texas, acting by and through the City Public Service Board of San Antonio (CPS Energy), Constellation South Texas, LLC (Constellation South Texas), and the City of Austin, Texas, are the licensed owners for Renewed Facility Operating License Nos. NPF-76 and NPF-80 and the general license for the independent spent fuel storage installation (ISFSI) (collectively, the licenses), which authorize the possession, use, and operation of South Texas Project (STP), Units 1 and 2 and the STP ISFSI, respectively (the facilities). The facilities are located in Matagorda County, Texas.

II.

By Order dated December 11, 2024 (Agencywide Documents Access and Management System (ADAMS) Accession No. ML24319A043) (Transfer Order), the U.S. Nuclear Regulatory Commission (NRC, Commission) consented to the transfer of a 2 percent ownership interest of STP, Units 1 and 2 and its generally licensed ISFSI from Constellation South Texas to CPS Energy in accordance with Title 10 of the Code of Federal Regulations (10 CFR) Section 50.80, “Transfer of licenses,” and 10 CFR 72.50, “Transfer of license.” Currently, Constellation South Texas holds a 44 percent ownership interest in the facilities, while CPS Energy holds a 40 percent ownership interest in the facilities. Upon completion of the proposed direct transfer, Constellation South Texas and CPS Energy would each hold a 42 percent ownership in the facilities. The proposed direct transfer does not involve the City of Austin's 16 percent ownership interest in the facilities. By its terms, the Transfer Order becomes null and void if the transfer is not completed within one year ( i.e., by December 11, 2025); provided, however, that upon written application and for good cause shown, such date may be extended by order. By Order dated November 26, 2025 (ML25328A155), the NRC granted a six-month extension until June 11, 2026, to allow additional time to complete the remaining conditions to closing.

III.

By letter dated May 14, 2026 (ML26134A361), STPNOC, acting on behalf of CPS Energy and Constellation South Texas (collectively, the Applicants), requested that the NRC extend by an additional 6 months, until December 11, 2026, its prior approval of the direct transfer of a 2 percent ownership interest of Renewed Facility Operating License Nos. NPF-76 and NFP-80 for South Texas Project, Units 1 and 2 and the general license for the STP Independent Spent Fuel Storage Installation between two of its existing owner-from Constellation South Texas, LLC to CPS Energy. As stated in the application, the requested second extension is due to STPNOC continuing to work to obtain a private letter ruling (PLR) or other binding guidance from the Internal Revenue Service (IRS) addressing the tax treatment of the nuclear decommissioning trust funds—which are qualified funds under Section ( printed page 36888) 468A of the Internal Revenue Code—following the transfer of funds from Constellation South Texas to CPS Energy described in the Application. The Applicants stated that they are diligently working with the IRS to obtain a closing agreement that will clarify the tax treatment and allow the transaction to close. Additionally, the Applicants stated that the extension request does not change the scope of the initial Application, and there have been no material changes in the conditions upon which the NRC relied in issuing the Transfer Order and accompanying safety evaluation.

Based on the above, the NRC staff has determined that the Applicants have shown good cause for extending the effectiveness of the Transfer Order from June 11, 2026 to December 11, 2026.

IV.

Accordingly, pursuant to Sections 161b, 161i, 161o, and 184 of the Atomic Energy Act of 1954, as amended, 42 U.S.C. 2201(b), 2201(i), 2201(o), and 2234; and 10 CFR 50.80 and 10 CFR 72.50, it is hereby ordered that that the effectiveness of the Transfer Order dated December 11, 2025, is extended until December 11, 2026.

It is ordered that after receipt of all required regulatory approvals of the proposed transaction, the Applicants shall inform the Director of the Office of Nuclear Reactor Regulation in writing of such receipt no later than 5 business days prior to the planned closing of the proposed transaction. Should the proposed transaction not be completed by December 11, 2026, this order shall become null and void, provided, however, that upon written application to the Director of the Office of Nuclear Reactor Regulation and for good cause shown, such date may be extended by order. The condition of this order may be amended upon application by the Applicants and approval by the NRC.

This Order is effective upon issuance.

For further details with respect to this Order, see the application dated July 31, 2024, and the associated NRC safety evaluation dated December 11, 2024 (ML24319A034). Publicly available documents created or received at the NRC are accessible electronically through ADAMS in the NRC Library at https://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 Public Document Room reference staff by telephone at 1-800-397-4209, or 301-415-4737, or by email to pdr.resource@nrc.gov.

Dated: June 9, 2026

For the Nuclear Regulatory Commission.

/RA/

Aida Rivera-Varona, Director Division of Operating Reactor Licensing Office of Nuclear Reactor Regulation

91 FR 36887