ML022130614

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Commission Memorandum and Order (CLI-02-18)
ML022130614
Person / Time
Site: Diablo Canyon  Pacific Gas & Electric icon.png
Issue date: 08/01/2002
From: Annette Vietti-Cook
NRC/SECY
To:
Byrdsong A T
References
+adjud/rulemjr200506, 50-275-LT, 50-323-LT, CLI-02-18, RAS 4705
Download: ML022130614 (6)


Text

UNITED STATES OF AMERICA NUCLEAR REGULATORY COMMISSION RAS 4705 DOCKETED 08/01/02 SERVED 08/01/02 COMMISSIONERS Richard A. Meserve, Chairman Greta Joy Dicus Nils J. Diaz Edward McGaffigan, Jr.

)

In the Matter of )

)

PACIFIC GAS AND ELECTRIC CO. ) Docket Nos. 50-275-LT, 50-323-LT

)

(Diablo Canyon Power Plant, Units 1 and 2) )

_________________________________________)

CLI-02-18 MEMORANDUM AND ORDER This proceeding arises from an application seeking the Commissions authorization for Pacific Gas and Electric Co. (PG&E) to transfer its licenses for the Diablo Canyon Power Plant, Units 1 and 2, to a newly established generating company. The license transfer application resulted from a comprehensive Plan of Reorganization which PG&E filed under Chapter 11 of the United States Bankruptcy Code. In a recent order, we described the reorganized corporate structure PG&E proposed and the nature of the five intervention petitions we received.1 We denied the petitions of the California Public Utilities Commission, the County of San Luis Obispo, and the Official Committee of Unsecured Creditors of PG&E, and we reserved ruling on the petitions of the Northern California Power Agency (NCPA) and the following group: the Transmission Agency of Northern California, M-S-R Public Power Agency, 1

See Pacific Gas and Electric Co. (Diablo Canyon Power Plant, Units 1 and 2), CLI 16, 55 NRC __, slip op. at 1-3 (June 25, 2002).

Modesto Irrigation District, the California Cities of Santa Clara, Redding, and Palo Alto, and the Trinity Public Utility District (collectively, TANC).2 The NCPA and TANC petitions raise antitrust concerns. The petitions are unusual because they do not challenge PG&Es license transfer application as such. Rather, they dispute the NRC Staffs notice that it may reject PG&Es suggested treatment of the antitrust conditions in its current licenses.3 The PG&E application proposes to continue these conditions in effect for PG&E itself and for a newly created transmission company, even though after the transfer these companies no longer would own or operate the Diablo Canyon plants or otherwise engage in activities requiring an NRC license. Consequently, we recently invited the petitioners and the applicant to submit briefs on the following question:

What is the Commissions authority under the Atomic Energy Act to approve the proposed license transfers and related license amendments where the current licensee (PG&E) as well as a company engaged solely in transmission activities would not, after the transfer, be engaged in activities at Diablo Canyon requiring a license, yet would remain or become named licensees on the Diablo Canyon licenses?4 During our review of the briefs the parties submitted, a fundamental issue of NRC authority has come to the Commissions attention. Specifically, the Diablo Canyon units were licensed under Section 104.b of the Atomic Energy Act (AEA),5 a licensing statute used in the early days of commercial power reactor development but containing no antitrust provisions.

Section 105 of the AEA,6 enacted in 1970, granted the Commission certain antitrust powers and 2

See id, 55 NRC at __, slip op. at 3.

3 See 67 Fed. Reg. 2455, 2456 (Jan. 17, 2002).

4 CLI-02-12, 55 NRC 267, 268 (2002).

5 42 U.S.C. § 2134.

6 42 U.S.C. § 2135.

responsibilities for facilities licensed under Section 103 of the Act.7 But PG&E holds no Section 103 license for Diablo Canyon.

The petitioners and the applicant did not, in their earlier submissions, address the question whether the Commission has statutory authority to retain or impose antitrust conditions for commercial nuclear power plants licensed under Section 104.b. Accordingly, we now seek briefs from the petitioners and the applicant on this question.8 The briefs should not exceed 25 pages and should be filed by August 22, 2002.

IT IS SO ORDERED.

For the Commission

/RA/

Annette L. Vietti-Cook Secretary of the Commission Dated at Rockville, Maryland, this 1st day of August, 2002 7

42 U.S.C. § 2133.

8 The California Public Utilities Commission and the County of San Luis Obispo may also file briefs. Earlier, we gave these entities participant status if we subsequently grant a hearing to another petitioner. See CLI-02-16, 55 NRC at __, slip op. at 22, 27. In addition, we invite the Department of Justice to submit its views if it so chooses.

UNITED STATES OF AMERICA NUCLEAR REGULATORY COMMISSION In the Matter of )

)

PACIFIC GAS AND ELECTRIC COMPANY ) Docket Nos. 50-275/323-LT

)

(Diablo Canyon Power Plant, Units 1 and 2) )

CERTIFICATE OF SERVICE I hereby certify that copies of the foregoing COMMISSION MEMORANDUM AND ORDER (CLI-02-18) have been served upon the following persons by U.S. mail, first class, or through NRC internal distribution with copies by electronic mail as indicated.

Office of Commission Appellate Lawrence J. Chandler, Esq.

Adjudication Office of the General Counsel U.S. Nuclear Regulatory Commission Mail Stop - O-15 D21 Washington, DC 20555-0001 U.S. Nuclear Regulatory Commission Washington, DC 20555-0001 e-mail: ljc@nrc.gov; ogclt@nrc.gov Laurence G. Chaset, Esq. David Effross Public Utilities Commission of Public Utilities Commission of the State of California the State of California 505 Van Ness Avenue, Room 5131 505 Van Ness Avenue, 4th Floor San Francisco, CA 94102 San Francisco, CA 94102 e-mail: lau@cpuc.ca.gov e-mail: dre@cpuc.ca.gov Gregory Heiden, Esq. Robert C. McDiarmid, Esq.

Public Utilities Commission of Ben Finkelstein, Esq.

the State of California Lisa G. Dowden, Esq.

505 Van Ness Avenue, Room 5024 Meg Meiser, Esq.

San Francisco, CA 94102 Tracy E. Connor, Esq.

e-mail: gxh@cpuc.ca.gov Spiegel & McDiarmid 1350 New York Avenue, N.W.

Washington, DC 20005-4798 e-mail: robert.mcdiarmid@spiegelmcd.com ben.finkelstein@spiegelmcd.com lisa.dowden@spiegelmcd.com meg.meiser@spiegelmcd.com tracy.connor@spiegelmcd.com

2 Docket Nos. 50-275/323-LT COMMISSION MEMORANDUM AND ORDER (CLI-02-18)

George A. Fraser, General Manager Edwin F. Feo, Esq.

Northern California Power Agency Milbank, Tweed, Hadley & McCloy LLP 180 Cirby Way 601 South Figueroa Street, 30th Floor Roseville, CA 95678 Los Angeles, CA 90017 e-mail: george@ncpa.com e-mail: efeo@milbank.com Steven M. Kramer, Esq. James H. Pope, Chairman Carla J. Urquhart, Esq. Maury A. Kruth, Executive Director Milbank, Tweed, Hadley & McCloy LLP Transmission Agency of Northern California 1825 I Street, N.W., Suite 1100 P.O. Box 15129 Washington, DC 20006 Sacramento, CA 95851-0129 e-mail: skramer@milbank.com; curquhart@milbank.com Wallace L. Duncan, Esq. William C. Walbridge, General Manager James D. Pembroke, Esq. M-S-R Public Power Agency Duncan, Weinberg, Genzer & Pembroke, P.C. P.O. Box 4060 1615 M Street, N.W., Suite 800 Modesto, CA 95352 Washington, DC 20036-3203 e-mail: ndr@dwgp.com James C. Feider James H. Pope Director, Electric Department Director of Electric Utility City of Redding City of Santa Clara 777 Cypress Avenue 1500 Warburton Avenue Redding, CA 96049-6071 Santa Clara, CA 95050 Grant Kolling, Esq. Roger VanHoy Senior Assistant City Attorney Assistant General Manager, Electric Resources City of Palo Alto Modesto Irrigation District P.O. Box 10250 P.O. Box 4060 Palo Alto, CA 94303 Modesto, CA 95352 Rick Coleman, General Manager Roland D. Pfeifer, Esq.

Trinity Public Utility District Assistant City Attorney P.O. Box 1216 City of Santa Clara Weaverville, CA 96093-1216 1500 Warburton Avenue Santa Clara, CA 95050

3 Docket Nos. 50-275/323-LT COMMISSION MEMORANDUM AND ORDER (CLI-02-18)

Harrison Call Girish Balachandran Call Company Assistant Director of Utilities 130 S. Cloverdale Blvd. City of Palo Alto P.O. Box 219 P.O. Box 10250 Cloverdale, CA 95425 Palo Alto, CA 94303 Scott Steffen, Esq. David A. Repka, Esq.

Assistant General Counsel Brooke D. Poole, Esq.

Modesto Irrigation District Winston & Strawn P.O. Box 4060 1400 L Street, NW Modesto, CA 95352 Washington, DC 20005 e-mail: drepka@winston.com; bpoole@winston.com Richard F. Locke, Esq. Robert K. Temple, Esq.

William V. Manheim, Esq. 2524 N. Maplewood Avenue Pacific Gas & Electric Company Chicago, IL 60647 77 Beale Street B30A e-mail: nuclaw@mindspring.com San Francisco, CA 94105 e-mail: rfl6@pge.com; wvm3@pge.com James B. Lindholm, Jr., Esq. Sheldon L. Trubatch, Esq.

County Counsel for San Luis Law Offices of Sheldon L. Trubatch Obispo County 4222 River Road, NW, #1 County Government Center Washington, DC 20016 1050 Monterey Ave., Room 386 e-mail:

San Luis Obispo, CA 93408 lawofficesofsheldontrubatch@starpower.net e-mail: jlindholm@co.slo.ca.us

[Original signed by Evangeline S. Ngbea]

Office of the Secretary of the Commission Dated at Rockville, Maryland, this 1st day of August 2002