ML17266A285

Suppls 800326 Conference Request in Behalf of Fl Cities. Requests Info Re Ft Pierce Withdrawal from Proceeding.Fl Cities Should Be Allowed to Participate in Negotiations.Ee Menge to Rj Gardner & Certificate of Svc Encl

ML17266A285
Person / Time
Site:	Saint Lucie
Issue date:	04/16/1980
From:	Spiegel G FLORIDA CITIES (FLORIDA MUNICIPAL UTILITIES ASSOCIATE
To:	Shapar H NRC OFFICE OF THE EXECUTIVE LEGAL DIRECTOR (OELD)
Shared Package
ML17266A283	List: ML17266A282 ML17266A284 ML17266A285 ML17266A286
References
ISSUANCES-A, NUDOCS 8010150408
Download: ML17266A285 (6)

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CCCRCC 57<CCCI RCSCRT ~ MCOIAiBISIO 5ANORA '. Si ACSC'CSCRT

>. iASI >>N

'ARCS N. ieCRWCCO Al>>aN 4, iBCTIe SRANCX5 K. iasIANCI5 OANISLiI, OAVIO5CN ChIA5 N. MC?tVCele. ~R OANICI.J. OMAN A~i>>R < MAi ~

OAVIO R, MiAV5 4VW 4IslrICw&

SPRIG~, ch ZCZL5~

2500 VIRQlNIAAV'EAUX N.W.

WASHINCa ~ 4N Q.C. 200QT TXLKR'IeCNC (2429 ~44 TCI wCCIaICR (242I 355i3574 BY KWD SCNNIC 5 CLAIR ACSCRT IeARC wY SCAR THCMA5 C, i~ irAVCCR JCleH MIC9IACI AORACNA CYNTHIA5. SCCCIRAO CARY*NCWCI

'ARC R. PCIRICR MARTA A. MANII~I

~

JCSCIseI I

VAN CATON April l6, l980

="award.

K'. Shapar

"-xecutiv Lecal D'c"ar.

Hucl ar 3 c iatarv Comm'ss'an Has'n@tan, D..

C 20555 Florida Pcwer a Dich'omaanv (St. Fucie Plan<<Unit No. 2),

NRC Cack,e c tao -

50-.3 89A Dea M. Shapa This supplements aur letter ta yau of i<wrch 26, 3.980.,

which we. requested a c'n erence with yau. ta discuss aur recuest on heha'f of sixteen

."-lorida. cities and thei" agency ta ~ain t:he settlement can e ence naw. underwav among

"-PSZ, Justice and.

HRC ~

On Apri', '980, withou< notice to this law fi~, Babe' Z.

Cardne,

."-PGZ Vice P es'dent, and an attorney, entered into an exchange af car.es=andence with Nr. Evel3: E.'Menge, Directo af Ut'1't'es cr =t. Bierce Qtilities Bcthcri-'9, prcvidin9, 'nt r alia, that Ft.

eee w'll withdraw as a cla'nt'

~~

C r

Act'cn Ãc.

79 9101M-ZV uLZ, -will withdraw i s 'nt aventicn in the Nt clear Begulatarv Commission antitrust hearing, and will wit"d= w its recuest or a Section 105(a) hearing he ore the MC.

(Attachments A and

3).

~

ct. Pierce's withdrawa3.s are apparently in consideration af the settlement af unrelated PPsZ->>"t. Pierce litigatian invalvinc Pie 'e's 'aviate Div'sion,.

~ a which

a. Stat cour t=ia'as schecu'd ta commence Apri'nd, and in which.=P&Zwas see'zinc same

$ 350,000 'n damages, inc3,ud'ng claims for ". Pierce's cantrihutian of the construction costs af a water line ta St.

Zucie Nuclear Unit l, where the line is presumably part: of cPSZ 's electric utility rate hase and the faci3.ities are encampassed C's canst uctian permit and operating license.

4 On April, 4, '980,

.>>Pa filed a Jo'nt St'pulation o

Dismissal wiM P e;ud'ce signed bv

=PGZ 's *t"orney of record and

"-. P'e ce's C'"v Attcrnev.

We a

e the at"or..evs or F

. P'erc fo= its NRC.mat ers, and are

'n the process o" making an inaui y into all the circumst n-ces invclved in the exchange cf letters in order to determine the prope course we must ta3ce. to d'ischarge our obl'gat'ons as attornevs.

Our present, preliminary mde standing is that PPGZ initiated negot'tions by a telephone call on monday, March 3L/

'980, from Nr. Heber Z

Cardner,

"-P&L'ice Pres'dent and an a" cr..ey, and tha Ar. Z. T.. Blount, at onzey, r pr sented

'n the negot'icns.."-PGL attcrnevs reve cont ct d us as attorneys c= r car with regards ta their int nt'on to negotiate.

a. set".lement..

Ãe dc not Wow what s

eps: they ma'y have

"~Men tc assure themselves that we had been informed cf the proposed set"'t ement, and inde d P=. Blount appears to have post-cned se 'cus negot'at'cns with

=""

Pie ce until shor ly be ore

~axial in the water Line case, at which t've he pressed

."-". Pierce or ediate settlement of the water case, the

<DC casesand the antitrus case against FPGi Y.oreover, in. the Xasm few days the same Fx. Cardne appears similalv to have attempted to init'ate iVRC se't"'ment tal.'cs di ectlv with Key West's manage without noti y ng this firm.

We believe that these constitute ancther example or the detewined e fo~s and intentions cz PPsZ to refuse tc deal w'th the int

~encr croup o= cities through thei des'gnated counsel

and, by c'v.'s've

means, to depr've these cities of a a'ppo-tuni"y to adjudicate or settle these matte s through the'= chosen representatives'e submit to you that PPGL's exc'us'cn of the sevente n c't'es throughout its settlement negotiations with RRC and Justice, even to the point of the'r conclusion, is par of the same. program.

We. deeply feel that such a program is inev'-

ably encouraged here V. S.

Cgovernment of icials play the:r par"

'n the programalbeit u'.aware of the ether aspects of the program.

We de m this 'ssue o

extreme importance because the proce-dures adopted by "-Par not only intefe e with our 'rope represen-tat'cn o= our clients and the protec 'on cf cur c'ientsghts,

~

~

out also 'nte e"e e

w "". adv's'ng

"'"e NRC in a timely ma.".ne of

'nadecuac'es

'n

=9GZ p.opcsa'.

Apparently, because of

."-PRE,-staf f can 'dential'y agreements, the C'ies (and their attorneys) have not seen the lates" settlement drafts, even

hcugh C't'es are ".ar"'es a the case and 'r"'es

'n inte est.

"-cweve, an ea 1'e dra that we d'd see

~mule, hav, among othe re~i t d HRC

'ce..se cand' ans t-be superceded by athe<<acenc es 'ctions As a Qrica

~ or the Cities Qa<<

t'c'"at'on in St.

Zucie 2, the =Psi-staff draf" sec" on con-cern' liabil tv cauld force the Ces ta wa've r.'ghts uncer state

'aw and cauld even far"e Hem ta reimburse FPGL'ar liabi-

3. i tv ar'izg am i > legal itv in the Company's operation. of St.-

~ucie 2,.

"-ad we ".-ar"icipated. in negotiations.,

we would have pa'nted aut when c ucia'a eements were being reached and the aublic interest in not, f ee'ng nuclear p3.ant age atars

"=am res-ansibil't'es in these matters,.

an interest which the KC sha es

~

L~e "r sent."rccedure az: c'vine the C't'es an'.

a. las" ~ss at settlemen-between cPSZ anc HRC. staf<<a"ter agreement caes not.

serve

"~e "-ubl'c, interest.

Yes the Ces c n caint out. aut a-geous

.=rav s'ons; but other's se C't'es ace an w~gossible task anc t'e "ubl'c interest su=fe"s when, in effect, Cit es a

e th own the burden of disarovinc and uasetting already negotiated ag emen's separately negatiat d hy "-7GZ, Zus~ice and MC Staff.

~he knaw3.edgeable

.and interested views o" Cit'es deserve early and ecual canside ation, which. they a

e nat gett'ng under present necat'tion.

procedures

'". this case.

Vie fear and ex-ec" that.

present proc du<<es will 'ead. to a harden'ng of disparate msi-

"ians hetwe n "-PGL'nd. Cities, which in turn will lead to a

lengthy trial rather than

a. timeLy and just set:

~ emend o~ this case.

F'nallv, we are es"ecial'v d'sturbed that De i'ould excluce

~".e Ces even Gainesville, a successful. antitrust camalainant acainst

=P&Z "<<am negotiat'ons with a Company agains" whom both the Fifth C'rcuit and the ":ederal Zne gy Regulatory Cammission has made findings oz ant:icampetitive cancuct.

Gainesville Utiles

v. Plorida Power

& Z,'cht Co.,

573

~ 2~ 293, ce<<C.

den~edI 439 U ~ ST 966

( 978)I 9'lorica Power E,icht Co.,

"-"=WC Cocket Ho. ~c78-19, et al.,

Gpx,nion Hos.

57 and 57-A (August 3, 1979 and Qctobe 4, 2979).

There is a plain public interest in having the C't'es ticiaate

'n negotiations to assu e that the situation

'ncans'stent" is resolv d.

aa <<

Re~aectf ullv subm'ted, C>>

>>ewey,

- s-.

Jase"h 3t

'erg, >>s>>

~

A'ttarney fax K,ake r7orth Utilities Author ty, New Smyrna Beach U ilitics Camm's 'n, Sebr inc Ut'lities Camm'ss'an and the C'ties af Alachua, Ba tow,

"-ax A ade, Gainesville,

=omesteac, Key west p

Kissi'mee, E,a'ce

= 'en,

'Haunt Cora, Hewbe ~, St. Clouc, Star.'ce and Tallahassee,

."-larida and the."-lorida Aunicipal Uti' ti es ~sociation

WAs =~

H =Ci) IC r

~

eS CPS.

5=HER RECEIV ED

<IR 7t380 FQRT PlERC=,

4.ar 1 1, 1980

."-LORlOA 234-"-0 PHONE gOGj 484.""cQQ

~p~~g= ~ -> ~!A."-,hflD Race~

Z. Care-"~

Cczwa 5

Q. 3ox 529100

'la~ ns 4~

)

oow o~

wM %&M

..l.i

~

~

Dezsz Zoo I

7. nave been ant>a~~ed by'he -oPierce U "-'1ities 4uthor=~:

(r2UA) to adv se ~au ~~t =1orida Po~.-e a L'ght Companys (cPL)

~

ofhce~ by 1ette= dzted 4ar~>

1, 1980, to sett'e a11 c1~<

aend'-~

'n bew>=" o= HUA ay~'t =PL, i clud='ng -athdra--1 of ZPUA as Pla--ti=~ in Cia 4ction Ho. 79-510~=CTV-X<7, v'hdra~a1 of its inta 'a=~on 'he Hnc1 a-Rem ~ato

> Co~~sion.

a ti-~st hearing, and. x.='mc'=~;.aLo~

ts = a"est for a Se tion"105(a) nearby befo e

the Vi~C, 's acce-tab>

to ~cU4, and tiat

~c.Q nte cs to z1e on, 2',

1980, i>s Ossa'ssa1 vT th P=ejndice o

Civi1 Action Ho.

79 5

0 CTV JLZp noir

'o nd~ ~ i I he Gc era1 0

s I ict Con t 'r i e Sana hem D~ sect o 5 orida.

~

~

~,

' ~

I

~

m

~

~

cers 2 d ~ t e above re7e-e c d se<t1 6&en o Per '

4pri>>,

1980 w 11 be the basis ro-tn presa=ation oz s"ch acd'-

tiona1 doc~ants

~d. a~ewents as a=

a~a=opr ate, and urther tnat on= ezcmn~

oZ 1ette s of th's date are bind~~g.on both."PL a c

>>PL to aroceed th sett1o ~t in accarda-ce Ju t' te=s anc candit='ons ~od'e'h V~ t~ JZv.'Yours

~.

ZM~/szG

<~,~r-Director oz Uti1'ties

~-~iACHNE~

P.O 5O> 52gl00, MIAPAI, Pl ~e52 RZC iV.=o

~PE 7 fQgQ

~ "- '4RAOQ R.OHIO PC'IVER 4 LlCRT CQMPANY Apr"l l, 1980 M>>

i 7< 9 ~

a

~~

~

iree I, a P.

0.

Box 3l9'or-Pia ca, clc 'cz 33450 0az aawal >>

~

's will cor" ou= d'scmsion to t'".a e =act thz" ~rL s arel2z= 'o ante= ="to z sattl =ant. th the =o=" Pierce Ut

t=es A"t'"c="'"7 cr. tna sam bzsis zs the settlaaant be-=aen '2L znd. the Qrlzn+~ Utilities Co~~ss on i'n wh~ ch i.i zl sett a~ar.t pzgers zre gragp aQ n s~. I sa t a, ~t bet>arne c

T zn would 'lvira th

=olla-ag:

.PL w'll mzk,a zvzilzbl to

~r.UA, s-z=a i St. Luc e Ur~t, Ho. 2, cr. the bzs Co~>ssion.

On the bzsis cZ z presently 802 <~,

z l7. s'a=a wo l6. we" to zbout 1LQ to zK zQQ i,oÃiRKta 1 pe is o" z pz="'iciaztion to tha Orlando'tile.ti s

est mtac nat output o8 Sly.

2.

~cL w"l'rov='ce w- ":. '-s s'"z=a o= St.

Lnc m='ssion sa=r'ce z~=aemant wa cz-.=ct azcr zg=

erne

~z~aeca-t.'.;

tha '. adarzl cz icr.

t=zns ssion saic to ~i'n connec" cri Un t

~to.

2 in zccor~~znca b th z t zns-to be ne~otizta6 bet'..-aei. ris.

l'n t"..e eve..t r=UA all consent to. ~rL's

~ ili:;.=. the

".ne=~ 3~~ Xzto=q Coanission "or zcijl:d. -..

3.

FPL w='ll orojia ozckstznk service to PAPUA zo- 'ts shz=e o= St. Luc"'e Ho.

2 Zo= z lm~tac "erich subsequent to St. Luc'e Unit ~To.

2 co~arcizl ooarztion ir. zccordznca wit'. z bzc?<stznd.

zgree"ant to be nagotiztad.,

should.

rPUA. desi=a th's service.

VA is zE-aezble

~rL w~l~ azka zvzilzbla zn zcarmi~zta zing~ t~ onzl 0. 333~ shia in St. Luc' Un~ t QI, o.

2 wh". ~>>9 will sell bzcY to ~L ova t+e a

o tha l~v

~

~L w ll z+ ea to

. zy QUA

";. over

=QUA.'s c st o"" interest o

bores issue~

to =i.-.znca -uch share, w t 2 pzj ~ants by>>=

to beni-upon coma ciz ope=zticn o= St. L.c a

U~t Jo.

2 cr on sc-a zatuzlly z~=eazble date cartzin '= coma cizl opa=zcion 's Gelzyec.

Subject to "PUA's zccaatz"ca o= tha provisions o= pz=z~rzph

o zoove,

~cL will, prio to St. Lucia Urit 2

= =st zchia'~ng co~arcizl oaa=ztior. zn" zt the =acuest o= r=U~, ragotizte zn azn"-a-

)g)PI.S.., $ RvliilcPSCP <<K

M>>

Vi ai 1

~/oreg o

~

m<<a

)>>>>g Zga T<<Q

~ " --hereby:PUA can mohan e z pccn o~ rPUA,'s sha-m tha outputof St. Luc'e Un't Ho. 2, for an eau'va e

C port'on of t'"a cut@ C fcr each oZ 2'L's othe~ operating nuclez-pLants, such ez"b~nge to become e==act~ve upon St. Luci.a Uni.t LTo.

2 f't ach-'av-'ng ccrc.zl. cperzt.'cn.

Such azchzn=e auld not ant~ CLa ~UA to c--..

anj pos a cn., c tha cDeracCg p 'nts, buc onljT co eca va the cutout

~

~

~

<<~ chirr,-

~ cs Uta>>vent=or.

~

Che iiuclaar Rag atony C~'ss'on L05(z) haa-"nj be=ore t e HRC.

7.

Scculd ~i. enc~~

a. settle ant ~H.ch any ot"er c'~ wdar

<<a=eh the c C7 w

receive prcport" enate y paatar ca". f cs chan mould oa prov.'dad to FPUA under tMs sattlazen", ~L's obL'@at'on to rPUA '<<'ll 'oe ~wcreased.

Sn crde to prov.'de, 7 UA any such ~eater bex'a:~ cs.

G.

rcpt. ~s

.. LL'~p to re'-curse rPUA or ac~~i costs cf L't.'=at" cn eeensas 'cnec" on.< Ch BA's zta rent='on

". SC.

Luc~ a 2 ant=-~~'st hearings a

t" n connect.'on

~~th purs~=n~

tha c vJ ac<

~ cn aga/s t "PL gp4 th a ga'(~~

o j35,000.00.

We <<=LL apprac'ata o= the abcva bas's for acogQ~ z a that any oas" a:{,ac'd con i a ct s

~

bee~

='a=o~ad by c2UA of Che accaptab~L.'~

~

settle "ant as saon as poss bla.

4~a, of ccv=sa,.

s of settlement a"-=e d upon -culd not oe unc'L aLL a~reagents hzva bean ~.ccrQoratad

.~v copy.c=","~s..'Latte=

. ~'raci: 'st ng cur attc ey "c =c~<<a=c to you z copy of the part. c pat on a~ac~ant.presently be =g negct=ztac -'th Orlanco Ut'Lit's CoPa'ss~cn, as that agrao ant nov sca ds.

~<<L <<-culd na ct aca cart~c pat~on ap'events

-.8th:PUA

~ene=aLLy 'n acco da=ca cH "h the above a~rao~ent.

cPUA may jo'ha;"L/QUC negotat "ons

<="

~ t v'shes cr va <<ill negot'ata sapa=-ta y,

as ycu des~ra.

We Lock fo~.~a=8 to hewn+. -."rcm ycu.

~V cruL oU s,

/

Jr:; 51st'.~c.~~

P~G/ s~