I thought Entergy dropped this sham years ago...why is the NRC still asking questions on it? Has Entergy asked the NRC to revisit this?If the NRC was a competent regulator, they already vetted the Entergy ANO limited liability corporation and approved it, why didn't they approve the northern gang of five nuclear plants limited liability corporation without question? Why are they wasting Entergy's and the NRC's money on asking the same question already approved? Is the NRC asking questions to the northern limited liability corporation that they didn't ask of the southern ANO corporation? If the NRC comes up with financial flaws in the gang of five, will they have to withdraw the ANO and other limited liability corporation formula?
The implication is the new limited liability corporation could go bankrupt and the larger corporation wouldn't be required to bail them out.
Here is the NRC approving Arkansas Nuclear One’s new corporate limited liability form. Is it very common. It is interesting; they put into a group numerous plants in this recent request, while ANO is a limited liability of a single plant?
The limited liability corporation would take on lots of debt in order to become disconnected from Entergy and hobbling the new group.
December 17, 2014
SUBJECT: INDIAN POINT NUCLEAR GENERATING UNIT NOS. 1 AND 2, PALISADES NUCLEAR PLANT, VERMONT YANKEE NUCLEAR POWER STATION, AND BIG ROCK POINT- REQUEST FOR ADDITIONAL INFORMATION REGARDING CHANGE IN CORPORATE FORM OF ENTERGY NUCLEAR HOLDING COMPANY (TAC NOS. MF3218, MF3219, MF3220, AND MF3221)
Dear Mr. McCann:
By letter dated November 19, 2013, Entergy Nuclear Operations, Inc. (the licensee), submitted a Notice of Change in Corporate Form of Entergy Nuclear Holding Company.
The Nuclear Regulatory Commission staff is reviewing the submittal and has determined that additional information is needed to complete its review. The specific questions are found in the enclosed request for additional information (RAI). Based on our discussions, we understand that a response to the RAI will be provided within approximately 60 days of the date of this letter.
This is from River Keeper and the Indian Point Controversy .Please contact me at (301) 415-1364, or by e-mail at Douglas.Pickett@nrc.gov, if you have any questions on this issue.
REQUEST FOR ADDITIONAL INFORMATION ENTERGY NUCLEAR OPERATIONS, INC. BIG ROCK POINT. PALISADES NUCLEAR PLANT. INDIAN POINT NUCLEAR GENERATING UNIT NOS. 1 AND 2. AND VERMONT YANKEE NUCLEAR POWER STATION DOCKET NOS. 50-155. 72-043. 50-255, 72-007, 50-003, 50-247, 72-051' 50-271' 72-059
NOTICE OF CHANGE OF ENTERGY NUCLEAR HOLDING COMPANY THRESHOLD
REVIEW
By letter dated November 19, 2013 (Agencywide Documents Access and Management System Accession (ADAMS) No. ML 13343A 170), Entergy Nuclear Operations, Inc. (ENO) provided notice on behalf of Entergy Nuclear Holdings Company (ENHC) regarding the planned conversion of ENHC from a corporation to a limited liability company (LLC). This request for additional information (RAI) identifies information needed by the U.S. Nuclear Regulatory Commission (NRC) staff in connection with its review of the submittal.
RAI #1: Conversion of ENHC to a Limited Liability Company
On November 19, 2013, ENO stated: "Effective on or about December 16, 2013, ENHC will be converted from a corporation organized under the laws of the State of Delaware to a limited liability company organized under the laws of the State of Delaware."
In a letter dated October 29, 2009, to ENO (ADAMS Accession No. ML092870647), the NRC indicated that the conversion to a limited liability company does not involve a transfer of control pursuant to Title 10 of the Code of Federal Regulations (1 0 CFR) Section 50.80, "Transfer of licenses," if the conversion does not involve a dissolution of the company or the transfer of ownership.
Regarding ENHC, indicate if the conversion to a Delaware limited liability company will involve dissolution of the company or a transfer of ownership. Provide the citation to the Delaware statute pursuant to which the conversion will take place. In addition, please provide a copy of the ENHC LLC agreement.
RAI #2: Impact on Financial Qualifications of NRC Licensees
On November 19, 2013, ENO stated: " ... there will be no changes regarding the ownership or management of the licensees that ENHC indirectly owns."
Indicate if the conversion to an LLC will impact the financial qualifications of the NRC licensees or in any way modify the financial support or inter-company credit agreements, including those provided by Entergy Global Investments, Inc. or Entergy International Ltd. LLC. Indicate which entity will control Entergy Global Investments, Inc. and Entergy International Ltd. LLC.
This information is needed to verify compliance with 10 CFR 50.80.
ConclusionOver the last ten years, the ownership of an increasing number of nuclear power plants has been transferred to a relatively small number of very large corporations. These large corporations have adopted business structures that create separate limited liability subsidiaries for each nuclear plant, and in a number of instances, separate operating and ownership entities that provide additional liability buffers between the nuclear plant and its ultimate owners. The limited liability structures being utilized are effective mechanisms for transferring profits to the parent/owner while avoiding tax payments. They also provide a financial shield for the parent/owner if an accident, equipment failure, safety upgrade, or unusual maintenance need at one particular plant creates a large, unanticipated cost. The parent/owner can walk away, by declaring bankruptcy for that separate entity, without jeopardizing its other nuclear and non-nuclear investments. This report examines the recent trend towards the use of limited liability corporations in the nuclear industry, often as part of multi-tiered holding companies, and identifies numerous concerns related to the use of such business structures.
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