ML17150A145
| ML17150A145 | |
| Person / Time | |
|---|---|
| Site: | Midland |
| Issue date: | 01/08/1981 |
| From: | BECHTEL GROUP, INC. |
| To: | CONSUMERS ENERGY CO. (FORMERLY CONSUMERS POWER CO.) |
| Shared Package | |
| ML17150A146 | List:
|
| References | |
| CON-7220 E-31(Q), NUDOCS 8106030076 | |
| Download: ML17150A145 (4) | |
Text
MEMORANOUM TO:
Fi 1 e FROM:
SUBJECT:
L. S.
Oewey SUSQUEHANNA OL REVIEW, PENNSYLVANIA POWER h LIGHT, OKT. 50-387 and 50-388 CITY OF KUTZTOWN TELEPHONE INTERVIEW On May 27, 1980 the undersigned called the City of Kutztown, Pennsylvania's E1ectric Oepartment and spoke with Mr. 0. L. Sheetz, Department Superintendent.
(215-683-3202).
Mr. Sheetz has acted in,this capacity since 1972.
According to Mr. Sheetz, the City of Kutztown has no generation.
Its peak load is about 6.7 MW. It is presently a full requirements wholesale purchaser from the Metropolitan Edison Company.
The unders~ed questioned Mr. Sheetz about Kutztown's negotiations for wholesale power from PPPL.
Sheetz stated that he was not the 'most knowledgeable person concerning these negotiations City Councilman Richard Landis, who has an electrical engineering degree and is the Councilman in charge of oversight with respect to the Kutztown electric utility, has done most of the negotiations on behalf of',<utztown wi th ?PAL.
{215-439-5103 (W) and 215-683-3155 (h)j.
According to Sheetz, Kutztown and PP&L have been negotiating for wholesale service for about. the past three years.
Kutztown would rather purchase power-rom PP3L because its rates are lower than Metropolitan Edison's.
- However, Sheetz r ports that Kutztown has still not decided whether the overall deal would be cneaper because it wi 11 be necessary to pay Metropolitan Edison a
wheeling charge to transfer the PPSL power to '<utztown.
There is only about seven miles from PPSL's service area to the City of Kutztown, but Sheetz believes that this line would be so expensive that wneeling would be cheaper.
0
<<2>>
{Apparently paying, or the right oT way would be very expensive.)
Kutztown is presently doing some research to resolve these cost problems and meetings between
- Kutztown, PP3L and Metropolitan Edison are scheduled in the near k
future.
According to Sheetz, wholesale power is the only area in which Kutztown has negotiated with PP8L.
Up to this point, Kutztown has never attempted to join in generation projects with other utilities.
Shee.z is aware of a Pennsylvania Municipal UtilityAssociation and the proposed legislation concerning joint generation.
- However, he states that up to this point the association's activities have been almost negligible and he is not aware of the details of the proposed legislation.
He refers us to Richard Landis for greater details concerning these subjects.
Sased upon i'fr. Sheetz's reports about City Councilman Richard Landis'x-perience in Kutztown's negotiations with Net.
Ed.
and
- PPEL, on 6/10/80 the undersigned telephoned Nr. Landis.
Landis reports that last week Kutztown officials met uith PPKL and Net. Ed. to determine whether Met. Ed's wheeling charges and PP&L's wholesale power rates are sufficiently low whereby Kutz-town should replace i~et..d. with PPSL as its wholesale supolier.
Sased upon what he has se n.hus,ar, Landis believes that Kutztown should make this change.
{Met. Ed's rates are inordinately high because of Ti~i).
However, be,ore any change in suppliers can be made, there are two years still existing on Kutztown's power supply contract ~ith."iet. Ed.
'".et ~
is not opoosing Kutztown -rom changing suppliers, but it insists that his two year contract period.irst expire.
Landis reports that PPKL is treating Kutztown fafrly.
However, this was not the case thro e years ago when Kutztown first approached PPKL about wholesale service.
At that time PPSL was insisting that a large surcharge be tacked onto its wholesale rate.
Nr. Landis reports that the Pa. Municipal Utili ies Assoc.
(PHUC) has been in exfs ence for about 29 to 25 years.
There are about 20 to 25 municipal members including Kutztown.
PMUC in the past has not been a very viable organization, but the members do meet several times a year.
CurrentIy P,'!UC fs sponsoring proposed Iegisla ion before
.he Pa.
State legislature uhfch will unable
..unicipals to form joint ventures with other municipals fn electrical generation units.
Landfs is sending the undersigned materials with respect to the prooosed Iegislation and the PMUA.
Landfs r ports that several years ago PPSL of,ared Kutztown an ownership share of the Susquehanna Nuclear Project.
In addi ion, PP~tL fs still pr~-
pared to offer unit power from Susquehanna.
Landis s
a es tha. Kutztown has not been or fs not presently interested fn participation in Susquehanna Respectfully submitted, Lee Scott Oewey Counsel for NRC Staff.