ML17083C264
| ML17083C264 | |
| Person / Time | |
|---|---|
| Site: | Diablo Canyon  |
| Issue date: | 06/14/1990 |
| From: | Murley T Office of Nuclear Reactor Regulation |
| To: | |
| Shared Package | |
| ML17083C263 | List: |
| References | |
| A, NUDOCS 9006210293 | |
| Download: ML17083C264 (12) | |
Text
Enclosure 3
UNITED STATES OF AMERICA NUCLEAR REGULATORY COMMISSION In the Matter of PACIFIC GAS AND ELECTRIC COMPANY (Diablo Canyon Nuclear Power Plant, Units I and 2)
Docket Nos.
50-275A 50-323A NOTICE OF VIOLATION The Nuclear Regulatory Commission (NRC) has identified several violations by Pacific Gas and Electric Company (PG&E) of antitrust license conditions a part of the Diablo Canyon facility.
In accordance with the "General Statement of Policy and Procedure for NRC Enforcement Actions," 10 CFR Part 2, Appendix C
(1990), the violations are listed below:
A. VIOLATION OF ANTITRUST LICENSE CONDITION (6)
Antitrust license condition (6) reads as follows:
(6)
Wholesale Power Sales Upon request, Applicant shall offer to sell firm, full or partial requirements power for a specified period to an interconnected Neighboring Entity or Neighboring Distribution System under a contract with reasonable terms and conditions including provisions which permit Applicant to recover its costs.
Such wholesale power sales must be consis-tent with Good Utility Practice.
Applicant shall not be required to sell Firm Power at wholesale if it does not have available sufficient generation or transmission to supply the requested service or if the sale would impair service to its retail customers or its abi lity to discharge prior commitments.
Contrary to the above, in 1982 the Northern California Power Agency (NCPA), a Neighboring Entity, and the City of Healdsburg, a Neighboring Distribution
- System, requested partial requirements power from PG&E, as part of an attempt by them to purchase part of their bulk power supply from the Western Area Power Administration (WAPA).
PG&E refused to sell partial requirements power as requested.
I
B.
VIOLATION OF ANTITRUST LICENSE CONDITIONS (7)a AND (7)d Antitrust (7) a.
Antitrust (7) d.
license condition (7)a reads as follows:
Transmission Services Applicant shall transmit power pursuant to interconnection agreements, with provisions which are appropriate to the requested transaction and which are consistent with these license conditions.
Except as listed below, such service shall be provided (1) between two or among more than two Neighboring Entities or sections of a Neighboring Entity's system which are geographically separated, with which, now or in the future, Applicant is interconnected, (2) between a Neighboring Entity with which, now or in the future, it is interconnected and one or more Neighboring Distribution Systems with which, now or in the future, it is interconnected and (3) between any Neighboring Entity or Neighboring Distribution System(s) and the Applicant's point of direct interconnection with any other electric system engaging in bulk power supply outside the area then electrically served at retail by Applicant.
Applicant shall not be.
required by this Section to transmit power (1) from a hydroelectric facility the ownership of which has been involuntarily transferred from Applicant or (2) from a Neighboring Entity for sale to any electric system located outside the exterior geographic boundaries of the several areas then electrically served at retail by Applicant if any other Neighboring Entity, Neighboring Distribution System, or Applicant wishes to purchase such power at an equivalent price for use within said areas.
Any Neighboring Entity or Neighboring Distribution System(s) requesting transmission service shall give reasonable advance notice to Applicant of its schedule and require-ments.
Applicant shall not be required by this Section to provide transmission service if the proposed transaction would be incon-sistent with Good Utility Practice or if the necessary transmission facilities are committed at the time of the request to be fully-loaded during the period of which service is requested, or have been previously reserved by Applicant for emergency
- purposes, loop flow, or other uses consistent with Good Utility Practice; provided, that with respect to the Pacific Northwest-Southwest Intertie, Applicant shall not be required by this Section to provide the requested transmission service if it would impair Applicant's own use of this facility consistent with Bonneville Project Act, (50 Stat.
731, August 20, 1937), Pacific Northwest Power Marketing Act (78 Stat.
756, August 31, 1964) and the Public
)forks Appropriations Act, 1965 (78 Stat.
682, August 30, 1964).
license condition (7)d reads as follows:
Transmission Services Rate schedules and agreements for transmission services provided under this Section shall be filed by Applicant with the regulatory agency having jurisdiction over such rates and agreements.
Contrary to the above, as set forth in U.S. v. Pacific Gas and Electric Com an, 714 F.Supp.
1039 (N.D.CA, 1989), in 1982 PERE far e
to prove e transmsssson services and file a transmission tariff in response to requests from NCPA and the City of Healdsburg for the purchase of wholesale power from MAPA.
C.
YIOLATION OF ANTITRUST LICENSE CONDITION (9)a Antitrust license condition (9)a reads as follows:
a.
All rates,
- charges, terms and practices are and shall be subject to the acceptance and approval of any regulatory agencies or, courts having jurisdiction over them.
Contrary to the above, PGSE has included the following language or similar language in tariffs filed with the Federal Energy Regulatory Commission (FERC) pursuant to requests for service under the Diablo Canyon license conditions:
This agreement shall become effective on the date it is permitted to become effective by FERC; rovided the a reement is ex ressl conditioned u on s acce tance o
a rovers>ons t ereo wst out c an e
an s
a not ecome e
ect>ve un ess acce te Emp as>s a
e The underlined language above is not consistent with the intent of the license conditions in that it provides PGSE with an unfair advantage in its dealings with other power systems in the Northern California bulk power services market.
Such language effectively precludes interested parties from contesting the terms and conditions of the service schedule thereby stalling any agreement or resolution of differences between PGSE and parties that may wish to take service under the license conditions and potentially forcing these parties to take service under whatever terms PGSE provides.
Examples of these provisions are contained in PGSE's tariffs with the City of Healdsburg dated April 20, 1981 and with NCPA dated July 29, 1983.
License condition (9)a requires PGKE to file service schedules with the FERC even if the parties do not agree to all of the proposed terms and conditions.
The purpose of license condition (9)a is to resolve any conceptual differences in the proposed service schedule at the FERC, which has jurisdiction over the transmission or sale of energy required under the license conditions.
PGKE has failed to file the required service schedules or has included provisions in service schedules that restrict the FERC from ruling upon rates,
- terms, and practices as is the customary practice for such filings before the FERC.
Pursuant to the provisions of 10 CFR 2.201, Pacific Gas and Electric Company is hereby required to submit a written statement to the U.S. Nuclear Regulatory Commission, ATTN.
Director, Office of Nuclear Reactor Regulation, Washington, D.C. 20555, within 30 days of the date of the letter transmitting this Notice.
This reply should be clearly marked as a "Reply to a Notice of Violation" and should include for each violation: (I) the corrective steps that have been taken and the results achieved and (2) the date when full compliance will be achieved.
If an adequate reply is not received within the time specified in this Notice, an order may be issued to show cause why the li.cense should not be modified, suspended, or revoked or why such other action as may be proper should not be taken.
Consideration may be given to extending the response time for good cause shown.
FOR THE NUCLEAR REGULATORY COllt1ISSION Dated at Rockville, Maryland this 14th day of June, 1990 Thomas E. tiurley, Director Office of Nuclear Reactor Regulation
4
ENCLOSURE 4
Cl U.S.
NUCLEAR REGULATORY COMMISSION DOCKET NOS. 50-275A AND 50-323A PACIFIC GAS AND ELECTRIC COMPANY 7590-01 n,
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DIABLO CANYON NUCLEAR POWER PLANT UNITS 1
AND 2 Cc
'ss ic'il ISSUANCE OF DIRECTOR'S DECISION UNDER 10 CFR 2.206 t
y 0 Jut'otice is hereby given that the Director, Office of Nuclear Reactor
.c iRrGUL<-<T,O Regulation, U.S. Nuclear Regulatory Commission (NRC), has issued the Director's Decision concerning petitions dated December 4, 1981, and August 1,~11, iRd.
by Robert C. McDiarmid, Esq., et al.,
on beha'tf of the Northern 6liforniaA<"'+
"lear Rea,'
Power Agency (petitioner).
A supplement to the petitions was filed on March 19, 1985.
The petitioner requested that the NRC take certain enforcement actions against the Pacific Gas
& Electric Company (PG&E) for allegedly violating the antitrust license conditions applicable to Diablo Canyon.
In a related action, brought by the United States against PG&E to recover payment for energy sold by K
the Western Area Power Administration and used by several cities in California, the United States District Court of the Northern District of California issued a ruling on June 8, 1989, that dealt with many of the same issues raised by the petitioner.
United States of America v. Pacific Gas and Electric Com an 714 F. Supp.
1039 (N.D. CA., 1989).
The Director has determined that PG&E violated certain of its Diablo Canyon antitrust license conditions, for the reasons explained in the "Director's Decision Under 10 CFR 2.206" (DD-90-3), which is available for inspection in the Commission's Public Document Room, 2120 L Street, N.W.,
Washington, D.C. 20555 and at the local Public Document Room for the Diablo Canyon Nuclear Power Plant located at the California Polytechnic State University Library, Government Documents and Maps Department, San Luis Obispo, California 93407.
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