DCL-06-078, Supplemental Information to Support License Amendment Request 06-03, Application for License Amendments to Delete Antitrust License Conditions

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Supplemental Information to Support License Amendment Request 06-03, Application for License Amendments to Delete Antitrust License Conditions
ML061780306
Person / Time
Site: Diablo Canyon  Pacific Gas & Electric icon.png
Issue date: 06/20/2006
From: Keenan J
Pacific Gas & Electric Co
To:
Document Control Desk, Office of Nuclear Reactor Regulation
References
DCL-06-078
Download: ML061780306 (7)


Text

E Pacific Gas and Electric Company' John S. Keenan 77 Beale Street, Mailcode B32 Senior Vice President San Francisco, CA 94105 Generation & Chief Nuclear Officer Mailing Address Mail Code B32, Room 3235 P. 0. Box 770000 San Francisco, CA 94177 415.973.4684 Internal: 223.4684 June 20, 2006 Fax: 415.973.2313 PG&E-Letter DCL-06-078 U.S. Nuclear Regulatory Commission ATTN: Document Control Desk Washington, DC 20555-0001 Docket.No. 50-275,-OL-DPR-80 Docket No. 50-323, OL-DPR-82 Diablo Canyon Units 1 and 2 Supplemental Information to Support License Amendment Request 06-03, "Application for License Amendments to Delete Antitrust License Conditions"

Dear Commissioners and Staff:

Pacific Gas and Electric Company (PG&E) Letter DCL-06-007 dated January 19, 2006, submitted. License Amendment Request (LAR) 06-03, "Application for License Amendments to Delete Antitrust License Conditions." The LAR proposes to delete Appendix C, "Antitrust Conditions," from Facility Operating License Nos. DPR-80 and DPR-82 for Units 1 and 2 of the Diablo Canyon Power Plant (DCPP), respectively.

This letter provides supplemental information to support the LAR.

The LAR was the subject of a Federal Register notice on April 14, 2006 (71 FR 19551). In response to that notice, on May 12, 2006, counsel for the Northern California Power Agency (NCPA), a party in interest with respect to the Antitrust Conditions and related matters, filed comments on the LAR. Counsel for NCPA advised that PG&E and NCPA had reached a Settlement Agreement by which. NCPA does not contest the grant of the amendments requested by PG&E.

The comments included a copy of the Settlement Agreement that, at the time, had not yet been formally executed by the parties.

By this letter PG&E advises the Commission that the agreement has now been executed by both parties. Enclosure 1 contains a copy of the executed Settlement Agreement for the record.

This information does not affect the results of the analysis or the no significant hazards consideration determination previously transmitted in PG&E Letter DCL-06-007.

A member of the STARS (Strategic Teaming and Resource Sharing) Alliance Callaway

  • Comanche Peak
  • Diablo Canyon e Palo Verde
  • Wolf Creek

Document Control Desk June 20, 2006 Page 2 PG&E Letter DCL-06-078 If you have any questions, or require additional information, please contact Stan Ketelsen at (805) 545-4720.

Sincerely, kjse7/4328.

Enclosure cc:

Edgar Bailey, DHS Terry W. Jackson.

Bruce S. Mallett Robert McDiarmid, Esq.

Diablo Distribution cc/enc: Alan B. Wang A member of the STARS (Strategic Teaming and Resource Sharing) Alliance Callaway

  • Comanche Peak
  • Diablo Canyon
  • Palo Verde
  • South Texas Project e Wolf Creek

-4 PG&E Letter DCL-06-078 UNITED STATES OF AMERICA NUCLEAR REGULATORY COMMISSION

)

In the Matter of

)

PACIFIC GAS AND ELECTRIC COMPANY))

Diablo Canyon Power Plant

)

Units 1 and 2 Docket No. 50-275 Facility Operating License No. DPR-80.

Docket No. 50-323 Facility Operating License No. DPR-82 AFFIDAVIT John S. Keenan, of lawful age, first being duly sworn upon oath states that he is Senior Vice President - Generation and Chief Nuclear Officer of Pacific Gas and Electric Company; that he has executed this supplemental information to support License Amendment Request 06-03 on behalf of said company with full power and authority to do so; that he is familiar with the content thereof; and that the facts stated therein are true and correct to the best of his knowledge, information, and belief.

Jo~nj. Keenan, SdaW Vice President - Generation and Chief Nuclear Officer Subscribed and sworn to before me this 20th day of June, 2006, by John S. Keenan, personally known to me or proved to me on the basis of satisfactory evidence to be the person who appeared before me.

ELIZABETH J. DIAMOND COMM. #1660814 W~~aSAN FRANCISC CFOUN a? NOTARY PUBuC.CAUFR14 County of San Fran isco My FRANCISCO COUNTY t tMY Cfmmf Expirs May na 2010 State of California

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,._W PG&E Letter DCL-06-078 Settlement Agreement

SETTLEMENT AGREEMENT This settlement agreement is made as of thi day of May, 2006, by and between Pacific Gas and Electric Company ("PG&E") and the Northern California Power Agency ("NCPA"), jointly the Parties.

Recitals WHEREAS, PG&E is the licensee of Facility Operating License Nos. DPR-80 and DPR-82 ("Licenses").for.Units I and 2 of the Diablo Canyon Power Plant ("DCPP");

and WHEREAS, the Licenses are subject to and now each contain Appendix C (the Antitrust Conditions); and WHEREAS, PG&E has filed with the NRC in Docket Nos. 50-275 and 50-323 (the "NRC Proceedings") to remove the Antitrust Conditions from the Licenses; and WHEREAS, the Antitrust Conditions arise out of the Stanislaus Commitments, which derived from the NRC licensing proceeding for the proposed, but never completed, Stanislaus Nuclear Plant, and which were included in the Licenses by virtue of PG&E's commitment in 1976 to the Department of Justice; and WHEREAS, NCPA is and has been held to be a third party beneficiary of the Stanislaus Commitments, and has previously sought to enforce them in its capacity as a third party beneficiary; and WHEREAS, PG&E and NCPA in November 1991 entered into a settlement

("1991 Settlement Agreement") in which PG&E agreed to abide by the Stanislaus Commitments through January 1, 2050, notwithstanding whether these commitments continue to be included in the DCPP Licenses; and I

-I WHEREAS, PG&E has represented to the NRC in the NRC Proceedings that PG&E will continue to meet its obligations with respect to the Stanislaus Commitments pursuant to the 1991 Settlement Agreement; and WHEREAS, PG&E and NCPA desire to settle and resolve any disputes concerning the NRC Proceedings and to avoid the further expense, burden and inconvenience of litigation, NO'WTHEREFORE, in reliance on the foregoing recitals,r.nd in consideration of the mutual promises, covenants and obligations herein, the Parties hereby agree as follows:

Terms

1.

PG&E, on behalf of itself, its successors and assigns, agrees that the 1991 Settlement Agreement is an enforceable contract and that NCPA may between now and January 1, 2050 enforce the rights accorded to a Neighboring Entity under the Stanislaus Commitments, attached hereto at Exhibit 1, and the 1991 Settlement Agreement, attached hereto as Exhibit 2.

2.

This Settlement Agreement does not in any way interpret, expand or otherwise modify the terms of the Stanislaus Commitments or the 1991 Settlement Agreement or any subsequent interpretation of either of those documents by the Federal Energy Regulatory Commission ("FERC").

3.

NCPA agrees not to oppose or attempt to condition in any way PG&E's request in the NRC Proceedings to remove the Antitrust Conditions from the Licenses.

2

-'I

4.

The 1991 Settlement Agreement and this Settlement Agreement may be enforced at the FERC, to the extent it may have jurisdiction over this matter, or in any court of competent jurisdiction.

5.

The undersigned represent that they have the requisite authority to act on behalf of, and bind PG&E and NCPA, respectively, to the terms of this Settlement Agreement.

PACIFIC GAS Z ELECTRIC COMPANY By:

Name:

Roger J. Pet rs

Title:

Senior Vice President and Chief Counsel Date:

lI*b'L-; "

NORTHERN CALIFORNIA POWER AGENCY By:

Name:

Jam e/f. 15ope"

Title:

General Manager Date:

___/_.

3 DC:467090.2