ML041330375

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Pacific Gas and Electric Company'S Response to City of Santa Clara Request for Order Declaring Transfer Orders Null and Void
ML041330375
Person / Time
Site: Diablo Canyon  Pacific Gas & Electric icon.png
Issue date: 05/05/2004
From: Repka D
Pacific Gas & Electric Co, Winston & Strawn, LLP
To:
NRC/OCM
Byrdsong A T
References
+adjud/rulemjr200506, 50-275-LT, 50-323-LT, RAS 7745
Download: ML041330375 (8)


Text

-RA s 7'165 May 5, 2004 UNITED STATES OF AMERICA DOCKETED NUCLEAR REGULATORY COMMISSION USNRC May 11, 2004 (12:02PM)

BEFORE THE COMMISSION OFFICE OF SECRETARY RULEMAKINGS AND In the Matter of: )ADJUDICATIONS STAFF Pacific Gas and Electric Co. ) Docket Nos. 50-275-LT

) 50-323-LT (Diablo Canyon Power Plant, )

Units I and 2) )

PACIFIC GAS AND ELECTRIC COMPANY'S RESPONSE TO CITY OF SANTA CLARA REQUEST FOR ORDER DECLARING TRANSFER ORDERS NULL AND VOID On April 23, 2004, the City of Santa Clara ("Santa Clara") filed a response' to the Pacific Gas and Electric Company ("PG&E") motion to terminate this proceeding as moot.2 Santa Clara supported the motion to terminate.. Santa Clara additionally in its "response" made a "request" that the NRC "[djeclare all orders previously issued in this license transfer proceeding to be null and void." Response, at 4. Because Santa Clara's Response requests relief, PG&E herein responds in opposition to that request.

This proceeding concerns the NRC order issued on May 27, 2003 approving the transfer of the operating licenses for Diablo Canyon Power Plant ("DCPP"). The transfers were required in connection with a plan of reorganization for PG&E. By its terms the NRC's transfer order will become null and void if the transfers are not completed by May 31, 2004. By letter "City of Santa Clara, California's Response to Pacific Gas and Electric Company's Motion to Terminate Proceeding," April 23, 2004 ("Response).

2 "Pacific Gas and Electric Company's Motion to Terminate Proceeding," April 13, 2004.

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dated April 12, 2004,3 PG&E notified the Commission that it will not complete the transfers and will allow the transfer order to expire. Accordingly, the relief requested by Santa Clara is unnecessary.

Santa Clara compares the present situation to one involving the aborted merger of Baltimore Gas & Electric Company ("BG&E") and Potomac Electric Powver Company

("PEPCo"). There, the NRC had approved the transfer of the operating licenses for the Calvert Cliffs Nuclear Power Plant by order dated October 18, 1996, and subsequently extended that order by separate order dated December 19, 1997. Upon cancellation of the proposed merger, the NRC issued another order, dated April 30, 1998, "terminating the effectiveness of the approval of the transfer of licenses." That final NRC order declared the prior approval orders "null and void." The NRC took that action specifically because of a request from the licensee (dated January 30, 1998) "that the order approving the transfer of licenses be cancelled." In the present situation, PG&E has not made a request to cancel the license transfer order. In fact, such an action is unnecessary, given that the transfer order will expire by its terms later this month.

Moreover, the order has no effect in any event if PG&E does not complete the related transactions. PG&E, of course, at this juncture will not pursue the plan of reorganization addressed in the transfer order. Accordingly, a further cancellation order is unnecessary.

In the Response Santa Clara specifically "notes that it was aggrieved by certain aspects of the orders issued herein, including the Memorandum and Order, CLI-03-02 issued on February 14, 2003, through, inter alia, that order's treatment of the DCPP antitrust conditions."

To the extent Santa Clara is requesting vacatur of this Commission decision (rather than the 3 PG&E Letter DCL-04-043, G.M. Rueger to Nuclear Regulatory Commission, Document Control Desk, April 12, 2004.

2

May 27, 2003 transfer order), PG&E also opposes that request. The Commission's February 14, 2003 order addressed significant legal and policy issues associated with the status of the antitrust conditions included in the DCPP operating licenses. The decision provides important guidance that may be instructive to PG&E and other licensees in the future. Conversely, that decision can cause no harm to Santa Clara or any other party because it addresses a specific license transfer that will not go forward. If PG&E or any other NRC licensee were to make any new proposal to transfer a license, or any other proposal based upon the conclusions announced by the Commission on February 14, 2003, it would need to make a new application to the NRC.

Vacating or otherwise declaring the Commission's decision null and void is unnecessary to prevent harm to any party. 4 Accordingly, the relief requested by Santa Clara is unwarranted and should not be granted.

4 The February 14, 2003 Memorandum and Order, CLI-03-02, is also, of course, a Commission decision. This is not a case involving a lower board ruling unreviewed by the Commission. The Commission's Memorandum and Order, as noted by Santa Clara (Response, at 2 n. l), was appealed to the United States Court of Appeals for the District of Columbia Circuit in Northern California Power Agency v. NRC, Case No. 03-1038.

The petitioner in that case has requested an order from the Court vacating the NRC's February 14, 2003 decision. On May 3, 2004, PG&E opposed that request.

3

Respectfully submitted, David A. Repka, Esq.

WINSTON & STRAWN LLP 1400 L Street, N.W.

Washington, DC 20005-3502 (202) 371-5700 William V. Manheim, Esq.

Richard F. Locke, Esq.

PACIFIC GAS & ELECTRIC COMPANY 77 Beale Street, B30A San Francisco, CA 94105 ATTORNEYS FOR PACIFIC GAS AND ELECTRIC COMPANY Dated in Washington, District of Columbia This 5h day of May 2004 4

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

)

Pacific Gas and Electric Co. ) Docket Nos. 50-275-LT

) 50-323-LT (Diablo Canyon Power Plant, )

Units I and 2) )

CERTIFICATE OF SERVICE I hereby certify that copies of "PACIFIC GAS AND ELECTRIC COMPANY'S RESPONSE TO CITY OF SANTA CLARA REQUEST FOR ORDER DECLARING TRANSFER ORDERS NULL AND VOID" in the above captioned proceedings has been served as shown below by electronic mail, this 5th day of May 2004. Additional service by deposit in the United States mail, first class, has also been made this same day as shown below.

Nils J. Diaz, Chairman Edward McGaffigan, Commissioner U.S. Nuclear Regulatory Commission U.S. Nuclear Regulatory Commission Washington, DC 20555-0001 Washington, DC 20555-0001 Jeffrey S. Merrifield, Commissioner James B. Lindholm, Jr.

U.S. Nuclear Regulatory Commission County Counsel for the County of Washington, DC 20555-0001 San Luis Obispo County Government Center, Rm 386 San Luis Obispo, CA 93408 j lindholmgco.slo.ca.us Office of the Secretary Office of Commission Appellate U.S. Nuclear Regulatory Commission Adjudication Washington, DC 20555-0001 U.S. Nuclear Regulatory Commission Attn: Rulemakings and Adjudications Washington, DC 20555-0001 Staff (original + two copies) e-mail: HEARINGDOCKET~nrc.gov Robert K. Temple, Esq. Lawrence J. Chandler, Esq.

2524 N. Maplewood Avenue Office of the General Counsel Chicago, IL 60647 U.S. Nuclear Regulatory Commission nuclawemindspring.com Washington, DC 20555-0001 e-mail: ogcltgnrc.gov 1jc(nrc.gov 1

Laurence G. Chaset David Effross Public Utilities Commission of Pubic Utilities Commission of the State of California the State of Califoinia 505 Van Ness Avenue, Room 5131 505 Van Ness Avenue, 4th Floor San Francisco, CA 94102 San Francisco, CA 94102 e-mail: lauecpuc.ca.gov e-mail: dreecpuc.ca.gov Gregory Heiden Robert C. McDiarmid Public Utilities Commission of Ben Finkelstein the State of California Lisa G. Dowden 505 Van Ness Avenue, Room 5024 Meg Meiser San Francisco, CA 94102 Tracy E. Connor 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.finkeisteinespiegelmcd.com lisa.dowvdenespiegelmcd.com meg.meiser~spiegelmcd.com tracy.connor(spiegelmcd.com George A. Fraser, General Manager Edwin F. Feo 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: georgencpa.com e-mail: efeo(milbank.com Steven M. Kramer James H. Pope, Chairman Carla J. Urquhart Maury A. Kruth, Executive Director Milbank, Tweed, Hadley & McCloy LLP Transmission Agency of Northern 1825 I Street, N.W., Suite 1100 California Washington, DC 20006 P.O. Box 15129 e-mail: skramer(milbank.com Sacramento, CA 95851-0129 curquhart(milbank.com 2

Wallace L. Duncan, Esq. William C. Walbridge, General Manager James D. Pembroke, Esq. M-S-R Public Power Agency Michael R. Postar, Esq. P.O. Box 4060 Lisa S. Gast, Esq. Modesto, CA 95352 Sean M. Neal, Esq.

Peter J. Scanlon, Esq.

Derek A. Dyson, Esq.

Duncan, Weinberg, Genzer & Pembroke, P.C..

1615 M Street, N.W., Suite 800 Washington, DC 20036-3203 e-mail: ndrdvdwgp.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 Roger VanHoy Senior Assistant City Attorney Assistant General Manager, Electric City of Palo Alto Resources P.O. Box 10250 Modesto Irrigation District Palo Alto, CA 94303 P.O. Box 4060 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 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 3

Scott Steffen, Esq. Sheldon L. Trubatch, Esq.

Assistant General Counsel Law Offices of Sheldon L. Trubatch Modesto Irrigation District 4222 River Road, NW, #1 P.O. Box 4060 Washington, DC 20016 Modesto, CA 95352 e-mail:

lawofficesofsheldontrubatch(starpoower.net DavTd A. Repka, Esq.

Counsel for Pacific Gas & Electric Company 4

DC:356502.1