ML17209A486
| ML17209A486 | |
| Person / Time | |
|---|---|
| Site: | Saint Lucie  |
| Issue date: | 07/10/1980 |
| From: | Hester R GAINESVILLE, FL |
| To: | |
| Shared Package | |
| ML17209A483 | List: |
| References | |
| NUDOCS 8012290399 | |
| Download: ML17209A486 (15) | |
Text
ss COUNTY OF ALACHUA )
Personally appeared before me, the undersigned authority, RICHARD L. HESTER, to me well known, and who, after first being duly sworn, deposes and says on oath as follows:
- 1. My name is RICHARD L. HESTER and I reside at 227 S.W.
80th Drive, Gainesville, Florida 32601. -I have been employed by the Utilities System of the City of Gainesville, Florida since 1975. Currently I am the Deputy City Manager for Utilities for the City of Gainesville, Florida, and in connection with this position, I am responsible for the management of the Utility System.
Before being appointed to this position on March 10, 1980, 'I held the position of Administrator of Engineering and Planning for three years.
- 2. I am aware that the Florida Power & Light Company owns and operates Turkey Point Unit Nos. 3 and 4 and St. Lucie Unit No. 1 and that it has under construction St. Lucie Unit No. 2. On behalf of the City of Gainesville, our counsel, Spiegel & McDiarmid and Ervin, Varn, Jacobs, Odom & Kitchen have requested that the Nuclear Regulatory Commission use its authority to condition construction permits or operating licenses'for FP&L's nuclear units to give the City of Gainesville the opportunity'o have, among other relief, a fair share entitlement in FP6cL's nuclear units through direct participation alone or in combination with others or through unit power purchasing; an opportunity for coordinated
planning, development and operation of power supply sources, including equalized reserves and availabi'lity of non-discriminatory back-up power supply arrangements with FP&L and others; an opportunity for rights to participate together with FP&L in a statewide integrated power pool; and an opportunity for access to FP&L's transmission system under fair and reasonable terms which will not create a price squeeze and agreement by FP&L to facilitate a joint transmission rate with Florida Power Corporation'nd others.
- 3. Apart from any offer which may have been made during settlement discussions of this and related cases, the City of Gainesville has not been given the opportunity for access to FP&L's nuclear units. The City of Gainesville desires such opportunities.
Since we cannot obtain access in any other way, we have requested relief before the Nuclear Regulatory Commission in'Docket Nos.,
P-636-A, 50-389A and 50-335A, et al., as well as before this Court.
Investments in nuclear units would involve major economic commitments and risks for the City of Gainesville. Nuclear generated power and energy would have to be integrated with our other power supply sources. Therefore, before signing. a Nuclear Participation or Power Purchase Agreement, the City of Gainesville would have to assure itself that the specific arrangements proposed were appropriate for the City of Gainesville from an engineering, economic and legal standpoint and that transmission, .back-up, liability and risk and contractual arrangements are satisfactory. Ne have not received an offer with specific terms of an agreement or had the opportunity to negotiate an agreement which would provide opportunity for such detailed consideration.
- 5. The City of Gainesville has long been interested in ownership in nuclear power plants and is a joint owner with Florida Power Corporation and other systems in the Crystal River No. 3 nuclear unit. ,However, because adequate generation coordination was not available, including the right to participate in FPGL's
'I nuclear units, the City of Gainesville began construction of other, more expensive generation. Consequently, the City of Gainesville has been damaged by not having had a fair opportunity for nuclear access. While the City of Gainesville still desires the opportunity for such access, and would give such opportunity full consideration, because of our current construction program, it I might find necessary to recommend against participation in St. Lucie Unit No. 2, although I would probably recommend in favor of participation in FP&L's other nuclear units. However, as manager, of the City of Gainesville Utility System, it is my present intention to recommend that the City. accept any fair offer for nuclear participation which would be cost effective considering our current construction program. Whatever the extent of Gainesville's participation, coordination would have to be necessary to permit the City to sell excess capacity that would be created as a result of having been forced to make other commitments. Apart from nuclear access, the other relief requested is of great importance to the City of Gainesville, particularly tr ansmis s ion access .
- 6. The City of Gainesville would like the opportunity to have some. form of partic'ipation in FP6L's operating nuclear units, I
either through direc't ownership or power purchases. Additionally, the City of Gainesville desires the availability of the other relief requested before, the Nuclear Regulatory Commission, including transmission, power supply coordination and purchased, power rights. ,My understanding is that counsel believes that the NRC and District Court are authorized to grant such relief.
- 7. The City of Gainesville desires peninsular-wide transmission service under a tariff. The City of Gainesville would also like the opportunity through the Florida Municipal Power Agency, to invest in Florida's transmission grid in lieu of paying transmission charges in order to meet its transmission needs, provided that such opportunity were available on a sound engineering and economic basis.
The City of Gainesville did not sign TSAs or transmission contracts offered by Florida Power 6 Light Company on the advice of counsel.
The reason the City did not sign the transmission contracts was to avoid consenting to rates, terms and conditions for transmissi'on service with which ~t did not agree. We desire reduced transmission rates and the opportunity for both peninsular-vide tariff service's well as for tariff service over FP&L's system. It is my understanding that by failing to sign the transmission contracts as offered by FP6L, the City of Gainesville coul,d still obtain V
transmission service as offered by FPGL providing that FP6L filed the proposed contracts with the Federal Energy Regulatory Commission. By not signing the contracts, and thereby withholding our assent to their terms, we seek to preserve our ability to contest before the Federal Energy Regulatory Commission rates, terms and conditions which we believe to be unsatisfactory.
'bviously,'ad we signed an unsatisfactory contract, FPM would'4>>
~ ~
have asserted that we were bound by it and'could not contest it at the Federal Energy Regulatory Commission. To my knowledge, FP&L has not objected to this means of parties preserving rights.
- 8. The City of Gainesville did not choose to invest money in a proposed site survey in contemplation of a-possible joint venture unit because such unit seemed unlikely of ever coming into existence. FP6I did not agree to consideration -of important prerequisites for the City of Gainesville .to participate, including transmission arrangements for the power from the unit and power supply coordination. We were disturbed, that FP6L would not own a share of the unit and that, at that time, FP6L was opposing legislation that would permit joint municipal financing of the project.
- 9. In all the above power supply related matters, while the City of Gainesville was aware of the positions of other municipally owned systems, we made individual decisions as to all litigation and power supply participation matters.
The foregoing statements are true to the best of my knowledge and belief.
WITNESSES:
RICHARD L. HESTER Sworn to and subscribed before me this ~~ day of A.D., 1980.
otary Pu lz.c State of Florida at Large Ny Commission Expires:
Notary Public, Florida, State at Large My Commlsslon E pires Feb 25 1982 5 ~
Bonded thru Jedco insurance agency
II APPENDIX D Houston Lighting and Power Co 'ah South Texas Pxoject..Parti-cx a @on reemen u y , 3), amen e , ce Liabilit ;of Partici ants to Each 'Other, S21.1 21.1 Participants shall have no remedies against another participant for tortious conduct arising out of the ownership of the South Texas project, or. any portion thereof, or out of Preconstruction Work, Construction Work or Station Work except when the claim results from Willful Action.
Willful Action, 54.31:
4.31.1 Action taken or not taken by a Participant at the direction of its governing body or board (that is, its managing Board or governing body in the case of San Antonio, or its Board of Directors in the case of Central or Houston), which action is know-ingly or intentionally taken or not taken with intent to cause injury or damage to another.
4.31.2 Action taken or not taken by an employee of a Participant, which action is intentionally taken or not taken with intent to cause injury or damage to another and which action or non-action is subsequently ratified by the Participant employing such employee at the direction of its: said governing body or board.
for Joint C
Boston Edison Com an A reement, Ownershi Con-struction and 0 eration of Pil rim Unit No. 2 October 13 1972) .
Standard of liability, 5 14 No Owner shall be entitled to recover from Edison any damages resulting from error or delay in the design, engineering, procurement, installation or construction of the Unit or for any damages to the Unit, any 'curtailment of power, or any damages of any kind, including consequential damages occurring during the course of the design, engineering, procurement, installation, construction, operation, maintenance, shutQown, demolition or disposal of the Unit or otherwise arising out of the performance of this Agreement, unless such damages shall have .resulted from V
a deliberate vio'ation of this Agreement occurring pursuant authorized corporate action by Edison.
Standard of care, g ll Edison shall have sole responsibility for, and is fully authorized'o act for the Owners with respect to operation and maintenance of the Unit in accordance with good utilitv operat'g practice for the benefit of all Owners, the objectives being to operate and maintain the Unit as efficiently, economically and reliably as feasible. In furtherance of such responsibility Edison shall'elect, hire, control and discharge (when deemed appropriate'y Edison) such personnel as are required, which personnel when hired, shall be employees solely of Edison, un-less otherwise determined by Edison. Owners shall share risks of employee negligence anQ other risks of operation and main-tenance in accordance with each Owner's Ownership Percentage.
Duke Power Compan , Catawba Nuclear Station Purchase, Construction and Ownership. A reement (Narch 6, 1978)
L'iabili't: o'g Dukego'r Ce'rt'a'ih'b'sr D'am' Except as otherwise provided in Sections 18.2(B)i 18.2(C), 18.2(D), and 18.2(F), and Article 20, Duke's sole liability to the Owners with respect to all claims of any kind, whether based upon contract, tort (including negligence), or otherwise, for any loss or damage arising out of, connected with, occasioned by or resulting from. this Agreement; or the performance or breach thereof, or from the design, manufacture, sale, delivery, resale, installation, construction, technical direction, repair or use of any items or related services furnished under this Agreement, shall be to pay any uninsured costs (excluding damages and costs discussed i,n Section 13.4) of redesigning, constructing restoring, repairing or replacing any property of the Owners damagec or made inoperable as the result of the failure of Duke to use reasonable efforts, in accordance with Usual Utility Practice, to lt carry out i'ts express undertakings under this Agreement, but only to the extent that such uninsured cost in any signle occurrence is in excess of $ 25,000; .provided however, that in no event shall Duke be required to expend for the restoration or repair of all property so damaged or made inoperable within one calendar year, an aggregate amount in excess of thirty percent (30-o.) of the Fixed Fee payments made to Duke pursuant to Section 6.3(C)(6) in such calendar year; and provided further however, that in no event shall Duke be liabile for the payment of the cost of any such restoration or repair unless demand for such payments is made by Power Agency in writing and is received by Duke within one (1)
year from the Qate that occurrence of such damage becomes kn to Power Agency but in no event beyond two (2) years after Commercial Operation of Unit 2'ith respect to claims t
made by the Power Agency.
Indir ct or Consequential Dama es g 13 3 In no event shall any Party be liable to the other Par y with respect to any claim, whether based upon contract, tort (including negligence), patent, trademark or servicemark, or other-wise, for any indire'ct, special, incidental or conseauential damages, including, but not limited to, loss of profits or revenues, loss of use of the Catawba Nuclear Station or a Unit or Support Facility thereof, cost of capital, cost of purchased or replacement power, claims of customers of the Owners for service interruptions, or claims of customers of the Participants for service interruptions.
Operating and Fuel Agreement, g 13.2-13.3, Liabilit of Duke for Certain Loss or Dama e, g 13.2 Except as otherwise provided in Sections 4.2, 4.3, 4.4 and 4.6, Duke's sole liability as operator to the Owners with respect to all claims of any kind, whether based upon contract, tort (including negligence), or otherwise, for any loss or damage arising out of, connected with, occasioneQ by or resulting from this Agreement, or the performance or breach thereof, shall be to pay any uninsured costs of restoring repairing or replacing any property of the Owners damaged or made inoperable as the result of the failure of Duke to use reasonable efforts, in ac-cordance with Usual Utility Practice. to carry out its express
undertakings under this Agreement but only to the extent tha such uninsured cost in any single occurrence is in exceeds of
$ 25(000; provided, however, that in no event shall Duke be re-quired to expend for the restoration or replacement of all property so damaged or made inoperable within one calendar year, an aggregate amount in excess of thirty percent (30%) of the fee payments made to Duke pursuant to Sections 5.7 and 10.3 in such calendar year; and provided further, however, that in no event shall Duke be liable for the payment of the cost of any such restoration or repair unless demand for such payment'is made by Power Agency in writing and is received by Duke within one -(1) year from the date that occurrence of such damage becomes known to Power Agency.
I Indirect or Conse uential Dama es, g 13.3 In no event, shall any Party be liable to the other Party with respect to any claim, whether based upon contract, tort (including negligence), patent, trademark or servicemark, or otherwise, for any indirect, s ecial, incidental or conse uential damages, including, but not limited to, loss of profits or reve-nues, loss of use of the Catawba Nuclear Station or a Unit or Support Facility thereof, cost of capital, cost of purchased or replacement power, claims of customers of the Owners for service interruptions, or claims of customers of the Participants for service interruptions.
Standard'of care Purchase 'ons'tru'ct' and 'Ownershi r t, 8.1,
Duke as En ineer-Contractor, 5 8.1 (A) Power Agency hereby engages and employs as engineer-contractor, and Duke hereby accepts such appointment.
for the Construction, Initial pueling, and placing into Comm<<ci>>
Operation of the Catawba Nuclear Station. In performing the work,'uke will act as an independent contractor to Power Agency. .The standard to be used in judging Duke's performance of the work here-under is that of Usual Utility Practice, as defined in Section 1.20.
1.20 Usual Utility Practice Usual Utility Pract'ice at a parti-cular time means any of the practices, methods arid acts,.which, in the exercise of reasonable judgment. in the light of the facts (including but not limited to the practices, methods and acts en-gaged in or approved by a significant portion of the electric utility industry prior thereto) known at the time the decision was made, would have been expected to accomplish the desired .re-suit at a reasonable cost consistent with reliability and safety.
Usual Utility Practice is not intended to be limited to the optimum practice, method or act, to th exclusion of all others, but rather to be a number of possible practices, methods or acts.
Operating and Fuel A reement, 5 2.1(B)
Subjec" to the provisions and conditions set forth below, k
limitations and requirements of personnel and equipment, or tech-nical specifications, applicable licenses, environmental and other regulations and any other applicable limitations, Duke will operate and maintain the Catawba Nuclear Station in accordance with Usual Utility Practice, and will handle all expenditures made for opera-tion and maintenance in a manner consistent with Nuke's usual ac-counting< control and approval procedures as modified by this Agreement.