FR 2021-01742

Overview

The U.S. Nuclear Regulatory Commission (NRC) is in the process of evaluating an application from the Arizona Public Service Company. This application seeks approval for what is known as an "indirect transfer," where certain licenses associated with the Palo Verde Nuclear Generating Station could be transferred from the Public Service Company of New Mexico (PNM) to Avangrid Inc. As a result, PNM and its parent company would become part of Avangrid's hierarchy. Crucially, the NRC assures that this transfer will not alter PNM's current responsibilities or affect its qualifications required to hold the license. However, interested parties must act quickly if they wish to provide input or request a hearing, as deadlines for comments and petitions are approaching.

Key Issues and Concerns

Several notable issues arise from the document's content that warrant attention:

• Complexity of Language: The document uses technical and legal jargon such as "tenant-in-common interests" and "possession-only rights," which might not be easily grasped by those outside the legal or nuclear sectors. This could pose a challenge for individuals seeking to engage with or understand the implications of the document.

• Lack of Financial Context: There is no detailed discussion within the document about the financial prudence of the transaction, leaving the public to speculate on whether this move is economically beneficial or detrimental.

• Corporate Histories and Oversight: While the document highlights the players involved — namely Avangrid and Iberdrola — it does not delve into their past operations or governance record. Understanding these elements is crucial to assessing any risks involved in the transaction post-transfer. Additionally, there is scant information on what oversight measures will be in place to ensure ongoing compliance and safety at Palo Verde once ownership changes hands.

• Engagement Opportunities: Although the document encourages public participation through comments and hearings, the timing is tight. With just 20 to 30 days to act, public scrutiny might be hurried and potentially insufficient for such a significant nuclear licensing matter.

Impact on the Public and Stakeholders

For the general public, the potential changes in ownership at such a critical energy facility could spark concerns about safety, governance, and future regulatory compliance. These issues might resonate particularly with those living near the Palo Verde station, or stakeholders within the energy sector who have a vested interest in the operational and strategic stability of nuclear power resources.

For specific stakeholders such as the tenant-in-common owners and operational entities linked to the licenses, questions may arise about whether their roles, responsibilities, or rights will be altered by this transaction. The lack of detailed discussion on these matters may not provide reassurance or clarity on how their interests are safeguarded, potentially leading to apprehension or resistance.

Conclusion

The NRC's review of this indirect transfer could hold considerable significance both for the nuclear energy sector and local communities tied to the Palo Verde Nuclear Generating Station. Stakeholder involvement and informed public input are essential elements in regulatory processes of this scale. However, the barriers presented by technical language, constrained timelines, and insufficient financial transparency may hinder the comprehensive engagement needed to facilitate a thoroughly informed decision-making process.

The document references financial aspects in a rather limited fashion. The sole financial mention within the text is that Iberdrola, a major energy company with an ownership stake in Avangrid, is noted as being one of the largest energy companies globally with a market capitalization of $85 billion. This reference serves to provide context on the financial stability and scale of the entities involved in the proposed indirect license transfer.

The absence of detailed financial analysis or explanation in the document can be linked to several issues identified in relation to the indirect transfer of licenses. Firstly, the document does not outline specific financial details regarding the costs or benefits associated with the transaction. Without these details, stakeholders may find it challenging to ascertain whether the transaction is financially prudent and in the public interest. A comprehensive understanding of how this large financial transaction might affect the operational costs or potential liabilities of the nuclear facility is missing.

Moreover, the mention of Iberdrola's market capitalization is not juxtaposed with any risk assessment or scrutiny of whether the financial influence of a foreign entity could pose implications for governance or operations post-transfer. While Iberdrola is indeed a financially robust entity, the document lacks a discussion on potential impacts on financial governance or whether there might be any indirect influence on the financial responsibilities and operations of the Palo Verde Nuclear Generating Station.

Finally, the document does not elaborate on whether there will be changes to the financial responsibilities or protections of the other tenant-in-common co-owners as a result of the transfer. This lack of clarity might be a concern to stakeholders involved with the facility, as any change in financial obligations could directly impact the economics of ownership.

In summary, while the document briefly references the financial stature of one of the key players in the transaction, it significantly lacks detailed financial disclosures and analyses that could reassure or inform the stakeholders and the public about the full implications of the indirect license transfer.