ML17266A286
| ML17266A286 | |
| Person / Time | |
|---|---|
| Site: | Saint Lucie  |
| Issue date: | 03/26/1980 |
| From: | Jablon R SPIEGEL & MCDIARMID |
| To: | Englehardt J, Shapar H NRC OFFICE OF THE EXECUTIVE LEGAL DIRECTOR (OELD) |
| Shared Package | |
| ML17266A283 | List: |
| References | |
| ISSUANCES-A, NUDOCS 8010150419 | |
| Download: ML17266A286 (37) | |
Text
QKORCC 5PiKOCt P C.
AOS CRT C. MCQIAAMIQ 5ANQRA J. STRCSC!
ROSCRT A. '*SLQH JAMC5 H, HCRWOCQ ALAHJ ROTH PRANCK5 C PRANC:5 QANICI I QAVIQ5CN THOMA5 H. MCHIJQH. JR.
QANICI J. O'LPiiil*N PKa R IL MAi QAVIO R. 5TRAIJ5 LAW OPPICKS Sx Izczx. 8: KcDL~mao 2COO VIRGINIAAVKNUE,N.W.
WASHINGTON, O.C. 2OOQT TKLKPHONKI202l SQQ~QQ TKLKCCIP!CR IQQQI 555 ZSTA March 26, 1980 SONHIK S. CLAIR RCSCRT HARLKYSCAR THOMA5 C. TRALICCR JOHN MICHACLAQRAOHA CYNTHIA5. SOCORAO CARY J.
HKWCL'ARC IL POIRICR MARTAA MANILQI JOSCPH L VAN CATCN BY KIND Eoward K. Shapa, Escruire
"=xecutive Legal Director Nuclear Pegulatorv Ccmmiss'on Hash'g ton, D.
C.
20555 Tcm "-ngelhardt, Zscuire Deputy ~mecutive Eegal Director Nuclea Regulatory Comm ssion washington, D.
C.
20555 AZ:
Florida Power
& Li ht Ccmaanv (St.
Eucie Unit No. 2),
. Docket No. 50-389A Dea" Messrs.
Shapar and Engelhardt:
Th's letter is writ en to reauest a conference with you con-cerning our desire, on behalf of 17 Florida Cities and their Assoc'at'on, 1/ to be allowed.to join in the settlement conferen-ces now uncer way among Florida Power
& Light Company, the Antitrust Division of the,Depa tment. of Justice and the Staff of the Nuclear 'Regulatory Commission apparently to settle their dif-ferences in the above-referenced FP&L nuclear licensing proceed'ng, and to discuss aspects of the proposed settlement with vou.
The Cities are public agencies of the State of Florida and should be represented on the government side of the conferences.
Needless to say, the public official.s 'n F orida are dist essed by their exclusion at the hands of the Federal gove nmen He desire to meet with vou to discuss these matters.
He think, in the context of this case, the public interest will bes" be served if all the interested parties seek to nego-tiate a conclusive overall settlement.
Absent such overall settlement, the Cities will be left to carry on the litigat'on by themse'ves, and the result will be to complicate the ultimate dispos'ion o
the matter.
As a practica'at'Her, prom'sing and 1/
The Fort Pierce Utilities Authority of the Citv of Fort
- Pierce, Take Horth Uti'ties Authority, New Smyrna Beach Uti it's Commiss'on, ebring Utilities Commission and the Cities o
A'chua, Bartow, Fort Meade, Gainesville, Homestead, Key HIest, Kiss immee, T~ke.'=elen, Mount Cora, Newbe ry, St. Cloud, Stark and T 1 1 ahassee, Florica and the Florida Municipa'tilities Association
("FMUAR).
Three of these c't'es are participating in the proceed'ng thrcucn membe ship in
'MUA.
g gfg54
meaning fu'egotiations between the C'ies and FP5T ceased in the Fall bv the unwill'ncness of FPGI to respond substantively or par icularly to reasonable C'ty proposals, evidently because FPsL bel'eves i" can come out ahead through splitting the State and Federal government parties.
Zn the St. Lucie case Florida Cit'es have alleged, among other things, that FPGT has used the power from its control of nuc'ear, base load generation and transmission facil'ties to monopoliz power supply and sales markets in Peninsular Flor 'da.
Florida Cities have furthe alleged tnat FP&Z has unlawfully consp'"
d to divide power supply markets in Florida.
En this regard g in Gainesville Utilities v. Flor ida Power 6
K iaht Co.,
573
~ 2d 292 J 294
( 978 )
~ cerzxorar'en~ ed, 439 U
S ~
966 g
t.".e Fifth C'rcu't s"ated:
"Ne hold that the evidence compels a finding that P5~~
was par of the conspiracy with Florida Powe" Corporation (Florida Power) to divide the wholesale power market in Florida." (footnote deleted)
+2 These allegations have led the Nuclear Regulatory Commiss'on to orcer a hearing whether the grant. of an unconditioned construc-tion permit or St.
Kucie 2 would "create or ma'ntain a situation inconsistent with the antitrust laws". Atomic "-nergy Act, 53.05 ( c),
42 U. S. C.
52135 (c).
FTe do not believe that either the public interest or the polic'es favoring settlement are furthered by splitting State and
.">>ede al governmental parties or by permitting a companv accused of ant'rust violations to separately pursue negotiations with what 't perce'ves to be the weaker party.
These negotiations are all the more d'stu bing since the iVRC Staff is apparentlv willing to agree to a settlement which
'gnores ent'lements of cities located outside o
FPGZ 's retail se vice area to nuclear access or of all cities to statewide transmission.
Zt is incomprehensible that the Staff would inten-tionally undercut the principles of the Gainesville
- case, c'ted
- above, as well as the settlement in United States
- v. Florida Power Coraoration and Tampa "-lectric Company, U.S.D.Ct.,
H.D.F3.a.,
Case No. 68-297-T or tha" it would limit relief to cities adjacent to FPsL's reta 1 service area despite the Fifth C'rcu't's
=inding of a division of markets af=ecting all Florida cities.
The Gainesville and Florida Power cases confirm that under the antitrust laws smaller cx.ties should not be limited to deal'ng with immediately adjacent compan'es.
1/
he Fifth C'rcuit termec FPGT 's defense as "dangerously close to an admission that it was common practic for the investor-ownec ccmpan'es to gang up on the municipals."
573 F.2d at 301.
- Purther, the proposed Justice-NRC-"-PGI settlement would appa ently place one"ous terms on small systems seeking to accu' St.
Kucie capacitv, never before reauired in settlement ag-eements before the NRC; the draft proposa3.
that was shown us would go so far as to grant FP&T complete discretion to contract itse3.f 6 om liabi'ty in the event that it operates a nuclear facility improperly or illegally. Thus, the price of nuclear access reauired oz smaller systems cou3.d be smaller systems'orced agreement to waive Legal rights existing under St te Law.
After Three Nile Island the failure to ho3.d a company operating a
nuclear plant to any standard of care couLd not be supported and would itself cive r'se to antitrust and other NRC Staff concerns.
The exclus'on of the cit'es from negotiat'ons is more d'sturb'ng, since it appears that PPsLs South Dade and St.
Kucie 2
l'cense appl icat'ons to the NRC contained false information in connec ion w'th Department of Justice antitrust review.
As counse3.
for Florida Ci"ies, we view the present posture of negotiations wi h the utmost gravity.
Ne would 'appreciate an opportunity to discuss it w'th you as well as the attorneys and consult nts on the case at your earliest convenience.
Vie bel'eve it could be helpzul if our.conference could include economic consultants, and we are prepared to bring ours.
Respectf u3.1y, Robert A. Jablon Attorney or Florida Cities c=:
Lee Dewev,
"-sq.
Jose h Ru&e g, Zsc.
QKCRQK SP!KQKI P.C.
RCSKRT C. '4COIARMIO 5ANORA J. 5TRKSKI
.'lOSKRT A. 'ABLCN JAMKS N. HCRWOOO ALANJ. RCTH P RAN CK5 K. P RANCI5 3ANIKLI. OAVICSON CMAS N. MCHIJQH. JR.
CANIKL,J. QIJTTM*N PKTKR K. MATe CAVIO R. 5TRAO5 LAW OPPICK5 SP!=-GzL d."5l:cDI~RDQD 2SCO VIRGINIAAVKiIUD. N.W.
WASXINGTCN. O.C. 2CO37 TKLKPHCNK(292I 333~00 TKLZCOPIKR I202) 333i2974 April 18, 1980 3'Z <MD SCNNIK 5. SLAIR RCSKRT HARl ~Y SKAR THOMAS C TRAIJQKR JOHN MICHAKL,AORAGNA CYNTHIA5. SOQORAO GARY J. NKWKLL,.
MARC R. POIRIKR MARTAA. MANILOI JO5KPH L VAN KATON Sanford i~1 Assistant Depar"-.en An ust
'Room 3109 h'. -"
itvack, "-s"uire Attorney one al
" o Jus"'ce D'is'on n,
D.
C.
2053 0 Florica Power
& Light Company (St.
Lucie Plant, Unit ~to.
- 2) I hRC Docket No
~ 50-389A Dear.'ir. Litvack Th's supplements our letter to you of March 26,
- 1980, in which we recuested a conference with you to discuss our reauest on behalf o
seventeen Florida Cities to join in the se ttlement conference now underway among FP&L, Justice and N2C.
Ne very much regret that you have not responded,
~a view of subsecuent developments, we urgently seek such a meeting and your assistance to protect import nt public rights.
Since ou" recuest for a meeting, Justice Depa tment counsel have sent a joiint letter, also signed by counsel or the H'RC Sta=f anc FP&Z to the St. Lucie Licensing Board stating "that counsel has agreed upon a detailed set of 1'cense condons wh'ch are now being subm'tted o-approval to the government 1
agencies nvolved and to the Florica Power
& Light Company."
As counsel to the Florida Cities, we f'nd it d't'ess'ng that the Fede al Cgovernment would negot'ate a settlement of a major ant'rust case without the presence of counsel for local governments, who are the victim of antit ust violations.
Re d'd not r ceive a copy of this ag cement until late yestercay.
Ne are now reviewing it and shall be prepared to discuss it with vou.
I=.owever, in the give and
~~ke of negotiat'ons, rights can be damaged
'r=epa bly, i= "hose absent f om n gotiat'ons c n only seek to change an agreement already reached.
- Thus, unless there
's careful consideration of the Cities'os't'on, our now seeing the agreement may "e or. little solace.
Nevertheless, we sha'1, o
cou se, review the proposal carefullv and comment as soon as possible.
o-n C
- anc, citie
.'".as been cui
" corn"e tit ve a t'../se ttleme l.. e d 0
se s
wI.thout no tz.
apparent
- that, faced with evpl
~ c t findings act'.'v 1/,
PPGE has adoptee a c'nscio<<s nt s rategv to c'vice the gove nmental arties k se t"1emen t of case s w'h the ind ividual fv 7 ng the 'r counsel of recorc.
Ou" c17ents have alleged, both at the MC and at the District Court ("-t. P'e ce Uti3. t'es Authority, et al. v.."-lorida Power a
."-lorica, Case
'Ao. 79-5101-CZV~~Z), that rP&L has violated
~Sections 1 and 2 of the Sherman Act through, among other things, conce tec refusals to deal and conspiring or comb'n'ng to restrain t"ade.
hese a'legat'ons must be deemec well-founded. 2/
1/
Cainesville Util~ ties v ~ ~lorica Power 6 i.i ht Co ~ I 573 r ~ 2d
- 293, ce ". aen'ea, 439 U.5.
966 (1978), Plarice Paver 6 L'cht Ca.,:88C Cacxet bla.
Ei78-19, et el.,
Qaxnxan Nae.
57 ena 57-I (August 3I 979 and Octobe 4I 7979)
~
2/
."-or example,. the i<<stice Depa"tment Brief in 2'lorida Power 8
~ icht Co. (St
~ ~ucie Plant, Un't Ho. 2),
NRC Cocket No. 50-3S9A, states i "Xn t'.".e present case
[St.
L'ucie 2j, there is little co<<bt that suffic'ent allegat'ons nave be n made aca'nst
"-PGi. to constit te a situat'on incons'stent with the antit ust laws that would be created or ma7ntained by the license activi-
- ties,
'= thev are proven.
PPGZ has allegedly c nied access to nuclear units to virtuallv all municipal.ly-owned compet'ng electrec
- svstems, generally refused to wheel; 'refusec speci-f'c whee'nc
- recuests,
'attempted to induce other systems to refuse to wheel, placec unlaw ul restr'ctions on wholesale power contracts, refused to se13.
wholesale power on ove" half a dozen occas 'ons, precondoned the sale of wholesale power on ant'competitive termsI subject compet'ors to a price scuee ze, engaged in
'~ legal terr itorial acreemen ts, and otherwise d nied compet'ors access to coordinated operation and development in an attempt to accuire those compe ting svstems.
Furthermore, the licensing and appeal boards had before them a subs antial amount of cocumentarv evidence which cemcnstrated that most of tne above-noted allegat'ons have a
substant'al bas's xn fact and are not==ivolous
he
"-'=."'.. C'cuit has expresslv ound 1 w viol t'on by "he Company:
(Nje hold that the evidence compels a
incinc that P&i was "ar" of
- a. conspiracy w'h "lor'da Power Corporation (Flor'da Power) to divide the wholesale power market in Florica...
This correspondence (between h'gh executives of FLorida Powe and FP&G]
points so strongly to the evistence o
a conspiracy tha t 'easonable men could no t arr 'e at a contrary verd'ct,
. 'oeinc Co. v. Shipman, 5 C'r.,
- 1969, 4LL F.2d 365; 374 (en banc).
Xn fact, the letters anc internal memoranda border on a blatant acreement to divide tne market."
( footnotes omitted. )
- Further, the Federal Znergy Regulatory Comm'ssion has held
( "lorica Powe"
& i icht Company, Opinion No ~
~7, Cecke t No.
9, e-a',
Aucust 3, 1979) 78 "On the basis of our analyss of the recorc before us, we conc'uce that FP&L 's proposed tariff restrictions would e'uinate the only prac 'cal source of base-Load powe" or energy to competing ut'lities with'n the marke ts dominated by the Company.
Fur thermore, the pro-
=osed res trictions would appear to crea te the po ten tial for additionaL anticompetitive e fects by inhibiting the formation of new distribution utilit'es w'th'n these mark ts.
FP&T has failed to satisfactorily demonstrate counterva'ling public interests that warrant approval of any o" these proosals except for the one which would prov de separato'art'l recu'ements serv 'ce The proposec restr
~ ctive provisions are an ticompe t'ive, we find no countervailing reasons for their implementat'on, and they are to be delet d."
Also, the Federal
"-nergy Pogulatory Comm'ssion statec (Florica Power
& Light Company, Opinion No. 57-A, Eocket No. M78-19, et a.,
Cctobe 4,
979):
"Xn our decision we and unreasonable md the Federal Power Ac anticompetitive e fe no Legal or factual side ec anc we shaLL rehea"ingI."
found FP&Z 's proposals
~~re unjust er the standards of 55205 and 206 of t, par ticularly because of the ir cts....
The Companv has raised considerat'ons not pre r'ouslv con-'eny the appl'cat'on
[for One of the essential settlement
- issues, according to our underst nc'ng, was whether re ief w'e effect'vely available to aLL c't'es or just "hose c'ties within the per'meter of FP&~~'s ret~xT serv ce area.
Aaoarently, the Justice Department attor-nevs are wiLling, for purposes of settlement, "o l~mit relief to the latt " anc, =urthe, to Lim't transm'ssion rights to evcluce
reso1vinc transm'ss'on groolems on a Peninsular Flor ida basis
~
of course, were not at Just'ce Department-FP&L negotiations to explain whv such 1'mited relief would maenta'n institut'onal bar lers aga's compe t'ion 'n who>>sale gower supply.
ou are reported in the Lecal Times of Washington, i<onday April 7, 1980, pp.
24-25 as being concerned about "monitoring comp'ance" with antit=ust decrees.
The Fifth Circuit has found tha t "2&2 wa s par" of a conspiracy to divide wholesale gower
- markets, bu unless the proposed settlement is corrected, the Jus te ce Depa" tment would apparen tly condone:2&1, '
1 'miting 's deali cs to smaller uti't'es ne r its r ta'1 service a ea and other 'nst' t'ona'rr ncements which r inforce the pattern
=ounc u be lega1 by the Ga'nesv'lie Court.
This is.espec'a1ly stressing in leght of the Just'ce Department's successful con-sent decree enjoin'ng utlit'es'efusing to deal outside the i" se vice area.
United States
- v. Florida Power Cora.
and Tamaa
=-3.ectric Co.,
U.
S. Dist"ic" Court, D. Fla.,
Case No, 68-297-T.
Unde Sect'on
'05 of the Atomic Fnergy Act, 42 U.S.C.
52 35, the NRC must make a f'nding whether the activities uncer the proposed license aill "c eat or mainta'n a situation incon-s's"ent w'h the ant'rust laws."
Your speech cuotec above shows conce n that the Div's'on support "the public interest on key cuestions of law presentec in private cases."
Yiere the Department to represent to the NRC that its proposed settlement resolved the ".s'uation inconsistent",
could gotents ally
'nju e the c't'es gosition in d'strict court.
Such injury would result from a settlement contrary to both a previous Department pose
'on in the Florida Power Cora.-Tampa "-lectr'c c se and the recent F'fth Circu' holdsng in the Gainesve lie case.
As an illust ation of F2&I 's attempts to create d'vision among the ces and oreclose their legal r presentat'ves rom part'cepating in management negot'ations, we note that on April 1,
1980, w'hout notice to this law irm, Robert J.
- Gardner, FP&L Vice President, entered into an exchange of correspondence w'h
~s<v.
Fwell "-. 0!enge, Director of Utilities for =t.
P erce Util'ties Au"hcritv, 9ccv'c'n9,
'nter alia, hat F.vie"ce "<<r'll wi"hdr w as a slain tif9 in Civil act Nc. 79-9101-CXV-JLZ, will withdraw its intervention in the Nuclear Regulatory Commission antitrust hearing p
and will withdraw its recuest for a Section
'05(a) heareng before the NRC."
F". Pierce's withcrawals are apparently in consideration of the settlement o" unrelated F2&K-Ft. Pierce litigation nvolving Pierce's
'tater Divis'on, in which a State court trial was scheculed to commence Apri1 2nd, and in which FP&K, was seeking some S350,000 in claims,
'nclud'ng cia'ms for Ft. Pierce's contr'bution of the construction costs of a water line to St.
EuCie NuClear Uns t 1, Where the line iS preSumab1v part Of'P&Z 'S e'ectrsc ut'lity rate base and the faci1es are encompasse" N C s
c ns ruct'n ermi a
Q 00era i g license
~
On Ap il 4,
- 1980, PP&T f'l d Joint Stipulation of Dismissal Pr judice s'gned bv
"-'P&Z 's attornev of record anc P'e's Ci-y Attozne~r.
lie a
e the attor..evs for
=
. Pierce for 'ts NRC matte s, and are in the process of making an incuiry into all the c'rcumst n-c s involvec in the exchange of letters in order to cetermine the prooer course we must ta!<e to discharge our obligations as attornevs.
Our present, preliminary understanding is that PP&L
nitiated the negot'ations by a teleohone call on Nondalr,
~<(arch 31,
- 1980, from <r. Robert J.
- Cardner, PP&T Vice P.es'dent and an at ornev, and that Hr. J.
T. Blount, attorney, represented P?&L the necotiations.
PP&Z attorneys never contacted us as attor-nevs o" recor" with regards to their intent'on to negotia.
e a,
sett'ement.
~ve do not know what steps thev <<air.have
~~!cen assu" themselves tha we had be n informed of the proposec sett'rne..t, and indeed Hr. Blount appears to have pos -oned se
ous necot'tions with Pt. Pierce until shortly before tr ia'n the water 1'ne case I at dhich time he pressed
."-". Pierce for immediate settlement of the water case, the NRC cases, and the antitrust case against FP&Z.
Moreover, in the last few days the same Nr. Cwrcner aooea" s simi'rlv to have attempted to initiate NRC settlement talks directlv with Key Nest's manager without notifying th's firm.
He believe that these const'ute further examples o
."-P&L's cetermined effor s and intentions to ref use to dea'ith the intervenor group of c'ies through their des'cnated counsel
- and, bv div'sive means, to cepr've these cities of a fa'r oppor un'tv to ad~udicate or settle these matters through their chosen representat'ves.
rTe submit to 'you that
."-P&L's evclus'on of the seventeen cit'es
"'.". oughout its settlement negot'ations with Justice and the
>itRC, even to the point of their'onclusion,
's part of the same program.
Ne deeply feel that
."-P&L's oivisive orocram has inevitablv been encouraged by your Department's willingness to negot'ate without FP&L's lett'ng
"".e Cities attend vour necot'at'ons at any stage.
Ne deem this issue of extreme importance because the proce-dt es adopted bv
":P&Z not only interfere with our orooer represen-tation of our clients and the orotection of our clients'icnts, but also interfere with adv'sine the Justice Department and the N?C in a imely,Larmer of inadeGuacies n
F? &L proposals.
Apparentlv, because of c?&L-Justice Department staff confiden-t'a'ty acreements r the C'ies (and their attorneys) nave not seen the lates se ttlement drafts until a" ter agreement was reach d, even
'.ough Cities are parties to the case anc oarties in in crest.
~he present procecure of giving the Cit'es only a last pass settlement between
."-PGI anc NRC staf, after agreement, does no t serve the public interest.
- Zes, the C'ies can po int out outrageous
.- ovis'ons; but otherwise Cit'es face an impossible task and the publ 'c interest su" fe s when,
'n effeet, Cit's are thrown the burcen o" disproving anc upsetting alreacy negotiatec agre ments separately negotia ed by FP&f, Justice and:iRC Sta=f.
'Phe kaowledgeable and interested views of C'ies ceserve early and ecual cons'ce
- ation, which they have not received under pre-sent negot'ation procedures
'n this case.
vIe fear and ev ect that sucn procedures will lead to a hardening of disparate -os'-
t'ons between
- PPsZ, and Cities, which in turn will lead to a
'ncthy trial rather than a timely and just settlement of this case.
."-inally, we are 'especially disturbed that the VRC would exclude the Cities -.- even Gainesville, a success" ul antitrust complainant against
."-PSZ f=om negotiat'ons with a Company against whom both the."-ifth Circuit and the Eederal Ener-".v Regulatorv Comm'ss'on nas made findings of anticompetitive conduct.
~here was a pla'n publ'c interest in having the Cities par-ticipate in negotiations to assure that the "situat'on incons'st nt" s resolved.
Since that was not done,.
~e desire an opportunity to d'cuss these serious concerns with you to assure that the C't'es have a belated opportunity to a feet the settle-ment process and to avoid serious econom'c injury to them contrary to basic antitrust precepts.
As counsel or the Cit's, we are ~ost anxious to assure
- that,
'n settling the i'ase, the De"ar" ~ent does not injure the Cit'es'egal
.~sition before the Distr't Court ~
Re spec tfully subm' t d,
--'r'obert A. Jablon Attorne ~ for Plorida Cities cc:
Robert."-abricant, Esa.
Janet
- Urban, Esc.
~
~ ~ --r
~
~
~
~ ~
~
APPEilDZX 3 "Replv of =lor"'ca. Ces to Responses of ">>lorica Powe inc Light Comaany one 5;nuclear RLe~ls"ory CoLLLm'sion St
+LL~ APL. 5~ Lttk, Vela Belch, ) 14, PR SS-JOURNAL
~ '~~ ~i)'0 H.ORLE POWER L UGHT COMPANY P
o'OL DtPL = <<0 ~v~ "Pk QBCBc~Q i 5'dpi R~ QM 'lQ- <<~~
PGvV~Z'.~l~ lLCQZDU~'y 5~5.
Pii 7VlUZ~<<QQHQld.
C
)
~
\\,
Sep(anbe.- 0, 1976
)
Dear Vero Beach Resider.t:
I 0
Cn September 3, l97o, Florida Power 6. LightComcany
>~ inEarmed the Public Service Commission ofour it:cenaon to LfeFor.
c=
te!lent. %hen you fix-heard cr c~d (hac Florida Power 6. LigI:cCom-pany ~~ng forrace re!ie:, c~ quesncns probably poppe" r'ghc inco your mine(
'Lqhac willthis do to niye.'~c biffir we vo(e to wHour e1
.'c sp'em to Ffonda Powe~ cx. Lighc Company?
.Why does (his come ~w ac'he last minute, be~ore t.'".e te~e~dum?
~ ld like (o e~ your mind'on boch these poincs'wich ruick I
First;the~ willbe noeFe=con yourefeeaic'oiH acaff Forqui(ca
'hile. ft'gener~'lfy cakes montw for(he Public ervice Commission (o study and ac; on a race inquest. LVe Lviffbe we!1 in(o 1977 before a Find
~ decision Ls is%de Meanwhile, if;~approve (he mfe inTuescfays vo(e and ic is
'. conc!ud¹in (he news(ure, >au willinenJoying Roi-d" Power G.
Lghc Companys p~c rata-u hied are, as you know, considerably lowe. Lmn what you now gay.
Ifourta(erequmisevencuaifygtan(e(Iby che. ubficSe."iie>>
Commission, che e!eecric bills oFaH FLorida PoLve. 6. Lightrutomers wiffrm 8u'ycu Lv2'5(if?peg 5picnic'at!y ki'hen Florida Power G.
Ligh(C".mpany provides yoLLe!wacs.":ice chan iF~ero McLLcon-tinued to operate (he e!e"-.c system.
As for the timing.. Fr'.d" y, p(ember3, was -.e earficsc pmibf=
day we could pre~re all c".e de.-ifs and pap(work for (he Public Servic=
Commission. fnfiact. wedidn'c <<~c (o be re dy until,e end t'
~ Se"'(enbes We wan(edycu to have ail tl1e F".ca ~~fore you'oce,so a foe CF,:
peopfea(Hot;da Powe L(L. f 'gh(Com ony'Lvorked ove. ime (os~
" thingsup. Ge.i'.ngt.'".e r.ewsa f<<vaysbeFL:re(he vote may noc ieiL'c:f...
buc ic 5L.w beacs "e((ing c.'.e neivs ~'tc; ".e nce...
4 J
~
i...
Thiswoniedmea !othe~use I ~~sewycu'rre erendumv w
.'- t ming cn Ge"temcer i'. I asked cur pe"ole to mHy put the prmm on-e to work nights and we=..ends iFnec~rp to getcur ~un'o &e Puo!ic ice Commission re-dyerrz =epte'mh. 7 7n ]did a g eat jcb.
'thin a <ew minutes ai".er w>> ttied cur t=ue.t witn i".e P'iic ce".ice I
.Commission, I wwacle to pass a:e irZcrmation on (o your Cityor",.cials
- . an/ ycur!ccal news me"'ia.
[$
I
~
Tosum itall up, wecia e:er p-,in'e cculci to jve ycu c.'".e
- .- nevis beire the'r.:c-.ndum. Evenir ".'otida Power 6,
< 'bahts fullre uest
~. o granted, you llstill pay less for Ficrida Powerm L!ghtsemc than
'l'cud pay if ez Ee"ch continued to cceiate rh e!
- csgtem.
e since~.y ~~!ice the ptccc+.--(e ~~il to ke=p this ptomtsc
~ i ~,. '
a
~
I'incere{/
. H.ORIDAFC}WFR, &,L{Qr!t gggPagy R.G. Mulholland So~or Vic= Pmdent
~ y
~
~
judeo ~~~ gad for bv che eeoc'xh~crs c4 fhcWs P~Ca inc Can psnp
~ 'knv, 1'd like (o give you;..ore cfthe deaib be~use ycure en-'
. rtfedtoatull. fr~nkexpf"nar'on.Poove)~u-niceahowthevotednd"i cur tace roue imi~itarrrt your e!=t";c bills, here are some r<~a~
~
~
~
~
has cn a ~iden(iaf custome-.in%m 2 ch who uses !CCQ kilowatt hcurspermontn. Rrs(, wemuzeacomcaisonus.ng<<heave.
gc..on(hy'f
= Mb&isc~~~me. wcutd have ~~idcv-(he rimeigh(mien('.d'or.'976.
ATPRESWi RATH
.. VITROBEACH.,:: FLORIDAPOPOVER &LIGHT'
':. '.'"'$4738:";:
'38.H
'ao Beach ia(es are 24Ão highe-. chan Florida Power 6. Li"h(.'.
Yaw suppose durir.g 1977 <<he Public +cmice Commission approves Pcnda Power&.L'ghtComcanys roue.ter<<ate r lie:in Full.
~
~ If I
~
~
~
'cmparetneaveageoitfbase cn(iM(wiGLwna(4"is~afiMCM(orner wcufd pay iP'eo Beach c"n(inued (o ccera(e (.'".e e!
=pcs-stew. lo
~ make this comcarison cmfisac, we r.us(add o dieI'ero Brac L ra(e (he 12.7.e incr~ which its ace"unclog r!rm; Em( 6. Egest, inFcrmed (;"e
'it!twculdbe nr~cp AE~i B.~ P'CREASES
~O BEACH FLORIDAPOPOVER G. LIGHT.
S53.60.
$46.60 Thiss<<iff indicates Veto Be ch ra(es to be 15'.o higher than Ffcnda Powe: G. Ligh(Ccmoany.
. Affdm'eI!gamine!udekas! ua!'cg(d=a, ficdcZjusa-.~(mZ jrcrHisz jew.
~ '.
Wee~to have a new nucfeargenera(fngunitat
(. Lucie o
~
~
inse~ce in (ne near R(uw. This should bring annual r'lsavings cF
~
more can 51CO million('",at wiffbe~ dir
.!yto cur custome.~
(nrcugn are uction in(ne'ue'c los(men(. which has beenrerfr(ed a cove.
" R (ne'ycuhave ie even wi(h Honda Power~(Ligh(Com-
~
~ C !I
~ panys Fuff rate re!fef.~es(approved.
you wiffstillreafit a ccnsiderab!e savmg.
~~Lfydces aH &iscome just now, wi(h (he re:er ndum onfy a ie.v cays away? All'(hrcugh (;".e n~~rations vi<<hVeto ce ch we have Em comofe(e!y hank accut the pcssibi!ity cF a race ircm; We poin(ed out &ati1crida Pcwer e. Ligh(Company i~aces the
'ame (remendous cost pressure tna( ~~ "ue~ng every e!e=-,'c u(iticyin Ffcrida. Fforida Power&.Lgh(Company is paying (he in!fated cocci 1976 wi(h income Fom a 197< rate st(ucn! re.
Fiorida Powe: 6.1 igh(Company ra(a have c"didoratly be n among <<he lowest in Florida. Ve are conr~den( (ha(in (he fcng run, when thee(hr.,"'or,'da e.e ic u<<fifties adjust:o me
<<ising caU, you'l I'nd F onda Powe G.i 'gn(Companyr (m near(hero(tomoFt;".e lis'.
fts true (ha(we~idn'tare'denfyde id or: the momingcF Sq:(emce'3 (o ask For<<a(
re'.ie<. Alfyear we'ves-id publicfy('twe use".Icusfy conc=med abcut nsing c~a and (ne possibility CF ai ra(e reques( has oF(en Wn c"nside~.
! ~
'hen weccutdn't pcs~ne (he ineviriaole any longe., we s-.~r.e
'~ring the Faca and!im~ we nW <<osupmrt cur r ues(. f('sa cig
..and complicated Jcb and, as 1 said beFore, i(!coked like we cculdn't be r
dy un(il (i;e enid oFZep(embe.
~ ~ r 'C 0 ~
~'PPENDIX C".
- -OB. POHZR G:-".=~XTZON
~
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'm Iwy 12, 1976 Memo to File
- y. E.
Coe (J.
K. Daniel on 7J28/76)
~i&V>~
APP.ENDIX D f65
~Nk4 7' CN7:j/)~
<<>< -Exec
~ g ucg7 QQPJPAJIY JU a
L29 t7l; F)CB ~RRESPONDEHCK gQ s Vcro Beach Economy interchange
.Mcetfn'f I~
11 1976 An interconnection contract was signed between FPL and CVB an November I, 1971.
Thc actuai final Intercanncction was compl etcd on January 23, 1970.
In January
- 1975, FPL and CVB, by mutual.
- consent, started engaging In economy interchange, mostly during off"peak hours and weekends.
In the first five months of 1975, CVB's share of the savings ln the economy transact'fons amounted to
$ 17,561.
Economy transactfons between FPL and CVB were stopped during the summer due to the price of available capacity.
CVB did not request any further ecancay interchange In 1975.
Thus far ln 1976, there have been economy interchange transactions on only one day, February 24, when FPL sold to CVB I4,000 kwh at an average price of 20.3 mill's/kwh.
I A meeting was he'ld In Vero Beach on May 11, 1976,'t Mr. John Little's request.
Those ln attendance were.'essrs:
John little " City Manager of Vera Beach Fred Cossctt - Plant Manager of Vero Beach Schuilcr Massey - Asst. Plant Manager of Vero Beach C.
H. Vhitmire - Manager " System (fpcrat Ions - FPL K. S.
Buchanan..- Staff Consultant " Power Supply " F?L V. E.
Coe, " Director " Power Supply - FPL During the course of the meeting, Mr. Lft le reported an offer tha had been r'ide to him by OUC to sell non-firm power at 19 mills/kwh, and would FPL deliver that energy across our system.
It was pointed out ta Mr. Little that FPL had na filed rate for such a delivery, and In the second
- place, FPL auld be able to scil energy during many hours of the day at a,rate equal ta or lower than 19 mills/kwh.
R review of the economy transactions with JERE OUCH Lake
- cnorth, and Ft. Pierce over thc past fcw months pointed out that oui produc ion costs were between 16-21 mills/kwh.
ft was pofnted out that with CYB having production casts in thc range of 23"26 mills/kwh, thcfr purchase cost would range between 19.5-23.5 mllIs/'44.
Therefore, the cost af ccana~
energy would be fess than thc 19 mflIs/kwh energy from OUC plus approprfatc dellvcry charge.
rhlloT-ev veau( estcunc
Mcnab to File Page 2
~y 12, 1976 it was again pointed out that FPL has been doing econc~
interchange with JEA, OVC, Lake Vorth, and Ft. Pierce in varying amounts for the past year, but that CVS had not wanted nor requested energy on an economy basis per their operating personnel during the past year.
The conclusion of the meeting was that Hessrs.'osset and Vessey
- auld, as time permitted, calculate their incremental produc ion costs various leve]s of generation and contac FPL as to the availability of economy energy.
it ~as generally fel that with the n~ capacity being ins alled on the FPL syst~,
that economy energy at a reasonable rate auld be aval.lable.
K.
Coe Director of P~er Supply VEClayg
~gg( $ ( f
/0 P~/Q) ~p $
7l28j76 DXO PPL S
R SPONSZ TO "3E"USA'P g.-~L Ppg ~PO B~~~seQgn~
pPL rep esentat'ves had conversation with F
. Lit~De of Ve o Beach ~ the laiter part of March or early April at which time P
~ Littl indicated he could possibly obta:a some dump" powe on an if or.when.
available" basis f om p lando Ut':ty Conmission (OUC) and cuestioned what provisions and at what costs could E'PL utilize its transm'ssion lines to t, anszit such power
.'t was explained t.".at FPL is under the jurisdic ion of the Federal.
Po~er Cormission and that any acrreement concerning such trarsac ion would have to be filed with the ZPC and receive he'r approval and this could be a tee consum'ng process.
Moreover, in order to arrive a
the bas:s or cos in) such service, studies would have to be conduc ed to assure that reasonable charges would prevail.
Attain, these studies would be time co, sum ng As put to FPL the re~-est was for an almost imnediate response which would have been impossible.
ZPL succested since the"'a was an existi.ng aareement between Uero Beach and PPL or the inte chance of gower under va ious situat'ons
"".at pcssib'y Vero Beach could rece've the needed erercy s'
Ck7-~~) p ~
Page 2
7/28/76'~
0 PPL~$
P->PQNQ-TQ "3""USAL TO 'na.=L POR ~O BZACB100286 at. comparable costs unde t'vis agreement and not he subject to the added costs associated with transmission service.
FPL fu the suggested that representat'es from PPL would be glad to meet with Ve o 'Beach to determine what would be the most appropria a rangements to provide such service.
Th ee reoresentatives from FPL's Powe" Supply Department met with 2=. Lit le and two Vero Beach Powe" Plant represen at:ves in May.
At th's meeting it was verified tha iPL could supplv the xecuested energy at comparable cos"s to those previously cuoted.
Vero Beach representatives indica-ed they would nwke some calculat'ons l
relative to thei" operating cos s
and contact PPL if they wish to pursue the suggested ar angements.
f
~ l I
=":~ did no receive any o <<icial recues fog transm'ssion of powe" from OUC, no to my Knowledge ece've any indicat'ons that Vero Beach w.'shed o pursue
=PL's sugcested al"ernat:ve.
7
4 s
~
v I
~
~
APPENDlX r.
Ju> v 28, 1977 y>>
~v~~hp 1 1 1(cQc~~1j, p-esi
- 0. ~c~ Oyg1 00
~4 1C~~
33101 Seh 1e --'= H:-.C Docile& Hcs. P-636-=
~ 50-389K e a1.
Dea=
4L. HcLC-a c.:
I Me
~" exve c=s cave 1C-c'e1-'p.='"
1<""'ca~ C-sewage Cc=
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Scclion 1, Creation of autllOrl t los (1)
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'fho governing liody of an aut)iorlty shnll consist of a Loard of cq<<alssionors.
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gc Tt Lnactod by tbo Loglslatwro of tho Stat& of Florid&1 Section 1.
Pafinltlons.-l'hon used in this acts (1)
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~ 2$
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I 1g 41 appoint ono (1) co<<alsslonor.
pach co<<alssloncx shall liovo
~ s lol st ona voto slid asy bavo ln aildltlon thoxoto ilcli addl-lions) votos
~ s tho ac<<bar liiinlclpalltlcs shall doter<<lnii.
Qach coaalsslonar shall servo
~ t tlio pleas>>ra af tbo appol>>t-I lng sutliorlty.
Tho <<c<<bors aay provlalc for pul.llc officials of tho pc<<bars to sorvtt ax officio as caauls lonors in addl-tlon to their othor puLllc dutios as officials of. xiii acrl.ars (1)
Hacli author)ty shall liavo tho.folloiilng po>>erst
()
'fo plan, flnoncof acqutro, construct
~ tlillcllllso, I
1 trlc
'k poitor supply pr<<J<<ct shit)1 bo a pr<<Joct i'lthlil tho do/I-
~
s I.
I lD 17 15 1$
30 op<<voto, ualnt ~ ln, uso, sharo costs of, own, loasot soll, dlsposo of, or othorwlso pafttclpato tn any atoctrtc powor sllpply proJ oct or pro JocJs wltliln tho stato of Florida, (b)
To purcbaao fro>> or soll to aay oloctrlc iitlllty iiltlln tl o stato of I'lorl Io; at uhotosat{l ~ tl o oloctrlc a>>eggy or capsctty or both produced by an oloctt'tc poi!cr suliply pro Ioct or prqJ acts, or s>>y portion I'bors<<f.
(o)
To flxi ~ssabllsb, ravlso, >>alntaln,
- chavgo, pay ood colloct rstos or oth<<d chargaS for Sorvtcos provtded or LcnofIts dorlvod of roadorod undor t)ils act..
~
(d)
To oxovctso all powors of ootncnt dnoaln fof tha acqulsltlon of proporty for. tho purposas provlilod In this act, iindor Choptors 71 and 74, Florida gtstutosi or ss>>sy oihorwlsi Lo provldad by )avt (o)
For tho purposo of Ilnanclng or softnsnctng tho cost ol an oloctrlc p<<wor supply pro)oct or pro)cela
~ to cxOvctso sl I Iha poiiors ln connoct ton wl th tho authortsatton, Issuo>>co, and saic of tonds as tho ss~o Lro conforrad upon
~
~
>>wolclpalltlas ly Chaptor 1$ D, Part I, Florida Stctutor.
For this purposo, all nf tbo tirtvtlogos, La<<ofIts, powors,'nd taros of Cboptor 1$ 0, liars I
~'hall Lo billy appllcablo to tho authority; provldoil that nothing contalnod thor<<In shall lluls or rostrlct lu sny uannor tlio right of tho authority
~ %
tu offset an ctoctrlc )i<<war supply proJcct outsldo tho bounda-riot or covpovato llatts of any piibllc oloctrlc utlllty ov
>>caber winlctpalt ty.
Fqr tho pwrposos of this act ~ an cloc-
~
~
g i
1 10
~ ~~,
11 ll 1$
lg
~
17
,e Ig I
33 lD 11 ll li 1$
1$
'17
.1 g I
1$
nltlon ot such tora ln subsoctlon 15D.41(t), Florida Statutes (s)
To oxorclso all otlior pqwcrs>><<costar/
and Incl-J ilciltal to tho bill and coutitoto oxorclso 'of tlio gc>>era I poiiors pvoscrtbod ln this acti provtdod ghat tbo.ncabor uunt-clpalttlos usy by Joint or co>>currant rosolutlon or ordlriauc4 onuiiarato %lich othor powors lii.gcuoral or speci flc torus allil usy t>>paso sucli ttuttattons upon tho powors <<f tho autIArtsy as shay doca approprlata.
(g)
To partlclpato tn any Joint oloctrlc powor sup.
ply proJoct with an Iuvostor-owuad oloctrlc utillty or rural alcctrlc cooporstlva assoclatlon, by Joltit owncrshlp, con-trart fov tha purchaso or sa lo of aloctrlc cnargy or catiactty or. both, or othorittso, to tha ssua oxtont
~ s any public cloc-
~ trtc utlltty or ucnbov uuntctpattty ts authovtsod by thts or any otbar law to psrtlctpato.
(I) Aftor tho croatlon.of an aiitborlty, auy otlior uuntctpsttty autbortsod hovcundor to Join ln crcatlon of an alithorlty >>ay bocooo
~ >>a>>bar tlioroof upon tbo approval of tho authortty.
Any u'oebor uuntclpaltty>>ay withdraw frau au authority with tho consont of tho suiliorlty; provldcd, how-ovor, that all coils Yaclllal rig)its acqutrod and obllgatlons lncurrod uhllo tho iiunlclpallty was a aciibor shall vc>>aln tn full forco and offact.
{5)
An authority >>ay bo dlssolvcd by Joint. or con-curront. vosolutlon or ordlnauco of lts ac>>bors, and Its funds and othor projiorty dlstrlbutod to.tts acabofs as pro-
~ s
~
~
~
~
~ ~
.\\
I 0
t
~
~
1 7
I 10 s11 17 vldcd tliotoln, upon o fin ling by lt ~ uoubors that tho pur-llosos of tho authority bavo boon substantially fulfI 1 1 edj provided thos.all bonds snd other obllgatlons of tho sutliorltl have boon fully paid, or paynont tboroof has Loon du'ly pro-vldad for.
Soctlon X.
Joint publtc/Prlvato Profocts.--ttvory pub)lc electric utlllty ls authorised to foln ulth ono or noro lrvostor-ounod iitlllllosot rural oloctt/c cooporsllyo sssoclstlons or other public oloctrlc utllltlaS, by folnt cuosrslilp, contract fot tlio purchaso or solo of electr/c
~ ~
llo other act or parts thoroof sli ~ 11 Le construod or lntor-ptotod as Inconslstout with or ln dorogotlon of tho'rlglit of aiunlglpslltlos to oxotclso tlio liouo gula llouo'rs al abovo lito-vldod.
~ Soctlon 5, I'owors Supplouontal.-~The powers ccnfottcl by. this sct sliall bo lh addltlon ond supplcncntaty to cxlstln~
powoyS and statutps, snd this act shall not bo construed aa topoallng or Ilaltlug any of tho provlslons of any other lou,
- general, local, or special l provided bol ovori tliat uhoncvor 1')
snorgy or capacity or boll>, or othstulso, for tho purposos
'f faintly flnsnclng, acqulrlng, constructing,
- nanaglng, i
- opotatlng, utlllslng, and ounlng any oloctrlc paper supply 10 tbo Jul) ond couploto ilxotclso of sny poiior confatroil on on pttl.oTIly oj public oloctrlc titllltyby thIF oct uould con-fllct ulth a IInltatlon contalncd In Its chartor or otlior-17 ls 30 3g ls 30 31 Lirofoct or profocts or purchasing or solllng at uholosolo tho olocttlc energy or capacity, or both, producod ly an iloctrlc pouor supply profoct or ptofocts, In accordance ulth tho provlslons of tlils act anil, ln tho Inplonontatlon of this act, nay croato sny orgsnltatlon, sssoclatlon, or logal cntlty (or tho occoipllshuont of tho purposos of thIS sct.
For such purposes, s public olocttlc utlllty sha)l have tli~ sano powers as aro provl lod In this 'act for foint power author l 1 los.
Soct Ion 4.
llano gula I'ouors.--lt ls oxprossly rocog-nltcd that uunlclpslltlos
~l,all hsva tlio tlglit go exorcise tho liono riha povots ailthorlsod by tho Florida Constltutlon In ordor to cffoctlvoly carry out tho purposos ol Article Vll iubsoctlon 10(d), of tho I'lorlds Constltutlon snd of this sct S
~
15 Its 17 lls l0 31 34 I
lg
'37 70 I
ulso orpfossod by slloclal act, such chartor or slloclal act lloltatlon shall bo suporso<loil by this oct fear tho purposes of tho exorcise of such payor pursuant to tlils act.
, Soctlon 4.
Construction,--Tho provlslons of this act,
'Iibfng nocossary for tho uolforo and prosporlty of tho state snd Its InliaLltents, and bolng enacted for tho purpose of Inplcnontlng tho provlslons of lttlclo Vlf, Scctlon l0(d) of the Florida Constltutlon, ss snoitdod, shall I 0 '1ILorally construed to offcct tbo purposos thereof
>>otton 7.
This aoa shall caRo
~ tfooc July 1 ~ 107$.
~
~
~
~
30
~ )
~
~
~
~
~
~
~ ~
APPENDIX F ST.
LUCK" UH'XT NO.
2 PARTXCXPATION AGREEMENT 1
This Agreement made as of ~~
4
, l980, between Florida Power a Light Company
("Company" )
and tne Orlando Ut'
~ ties Comm's ion, a statutory commission under the laws of the State of :-lorida ("Pa""icipant").
HiTNZSSZTH TF&T:
NH=-REAS, Company is constructing a nuclear generating un't, to be called St. Lucie Unit No.
2, at a site on.-.utchinson Island, in St. Lucie County, Florida,;
and
'~>i:-R~S, Company has undertaken to obta'n and has received from the Nuclear Regulatory Commission under HRC Docf:et No.
50-389 a permit to c nstruct St. Lucie Unit No.
2; anc Fd=-REAS, Companv and Participant have negoi'ated the terms and conditions of this Agreement, and Company is willing to sell and Participant 's willing to purchase ownership richts in St. Lucie Unit Ho.
2, all in accorcance with the terms of
'this Agreement; and
is jn conformance with the general guides and testing proceoures in Sections EXZ and XV, respectively, o'f the Southeastern Electric Reliability Council Guideline No.
2 for Uniform Generator
'Ratings for Reporting, dated February
- 1972, as amended October,1978.
1.29 "Station Service Reauirements" means the Power and Energy reauired during any 'period for operat'on of all ecuipment and systems (including an allocable portion of the Power and Energy used for Common >>acilities) used or useful in connection with the start-up, operations, shut-down and maintenance of St.
Lucie Unit Ho. 2.
1.30 "Uniform System of Accounts" means the Federal Energy Regulatory Commission's "Uniform System of Accounts Pre-scribed for Public U"ilities and Licensees (Class A and Class 3)," in effect as of the date of this Participation Agre ment, or as such Sys em of Ac ounts may be modi ied by the federal Energv Regulatory Commission from time to time.
References in this Participation Agreement to a
"FERC Account" or to any specific Account Number shall mean the Account Number in effect as of the date of this Par ic:pation Agreement or any successor Account.
1.31 "Unit Site" means the portion of the St. Luc'e Site described in the legal description contained in Exhibit XZZ.
1.32 "WillfulAction" is action knowingly'r in"entionally taken or not taken by an officer or employee o" an
Owner exercising managerial responsibility at a senior level with eithe the intent to cause injury or damage to another or the knowledge that such action is a material breach of the pro-visions of this Participation Agreement.
WillfulAction does not include action taken in good fai th in connection with carrying out responsibilities to protect prope ty, personnel or the public sa etv.
(W~
(
w
~
g)
Generall'c eoted r,lectric Utility Practice.
Company shall perform its obligations according to Gene ally Ac epted =lectric Utility Practice, but Company shall have no liability to Participant under any circumstances nor shall Partic'pant be rel'eved of any obligation to make payment except as provided in Section 25.
-103-
25'iability and Indemnification.
Except for the obl'gation to make the payments reauired by this Participation Agre ment, and except as provided in Sec-tion 17.5.2 herein, and except to the extent that such liability
, is discharged by the insurance described in Section 26, no Owner o
its directors, officers, Commissione s,
Councim~
en,
- agents, or employees, shall nave any liabil'y in contrac
, in tort or otherw'se to other Owners, or to any of them, for any direct, indirec" or conseauential loss, cost, damage or other expense incurred or sustained as a result of any act or fa'lure tp act; whether or not negligent (including gross negl'gence, sole negl'ene or any other type of negligence),
or otherwise, by such Owner, or its governing board members, directors, off'cers, Commissioners, Councilmen,
- agents, employ es ar contractors, or bv any other person or persons for whom such party 's deemed responsible, in performing or failing to.per orm the provisions of this Participation Agreement, and shall only be liable for such loss, cost, damag or other expense resulting from Hilliul Ac ion, Except to the extent that such liability.is discharged by applic ble 'nsurance, no Owner or its governing board members, directors, officers, agents, or employees, shall have any liabil-ity in cont act, tort or otherwise to the other Owners, or to any of them, for any d'rect, indirect or consecuential loss, cost, or
- damage, or other expenses incurred or sus ained as a result of
-104-
any act or failure to act, whether or not neg3.igent (including gross negligence, sole negligence or any other type of negli-gence}, or otherwise, by the Company, or its directors, offic rs,
- agents, employees or contractors or any other person or persons for whom Company is deemed res.onsible arising out of Company's construction, ma'tenance of, or other activi ties in respect of any othe generating unit at the S". Lucie Site, and shall only be liable for such 3.oss,
- cost, damage or other expense resulting from Will ul Action.
The Parties shall share in proportion to thdir Ownership Shares the'cost incurred by the Owners or any of them in dis-charging liability and other responsibilities to third parties incurred in the performance of the work contemplated by this Participation Agreement, except to the extent that such 3.iability results from WillfulAc ion.
The Participant shall, to the ex-tent of its Ownership Percentage, inidemnify and save harmless Company, its directors, office s, agents, employees or contrac-toes, f om and agains the cost of discharging liability to or.
compromising or satisfying claims or demands bv anv third party or parties (includ:ng without limitation attorneys'ees, costs anc expenses lal sonal injury,
'n connection therewith, whether incurred at pre-or appellate proceecings) arisinc out of any per-includ'ng d ath resulting therezrom, or out of any damage to or loss or cestruction of property, or out of any cia'm based on tort, cont act, or otherwise, which, 's in any manner
based upon, occasioned by or attributable to the under aking or performance or omiss'on or failure to pe form by Company, its direc"ors, officers, agents, employees, contractors or by any other person or persons for whom Ccmpany is deemed responsible, of the responsibilities assig'ned to Company by this Participation Ag cement, notvitnstand'ng that such
- damage, loss or claim may be the esult of negligence, sole. negligence, gross negligence, or otherwise,. except to the extent that such liabilitv, losses, claims or cemand are discharged by the insurance described in Section 26 or are caused bv Hi13. ul Action on the part of the Company.
-106-
er UNITED STATES OF AMERICA BEFORE THE NUCLEAR REGULATORY COMMISS ION BEFORE THE ATOMIC SAFETY AND LICENSING BOARD In the Matter of F LORIDA POWER
& LIGHT COMPANY (St. Lucie Plant, Unit No 2)
)
)
)
NRC Docket No. 50-389A
)
CERTIFICATE OF SERVICE I hereby certify that copies of Florida Cities'nswer To Joint Motion were. served by hand* or deposited in the U.S. >ail, first class postage prepaid this 9th day of October, 1980.
"ivan W. Smith, Esq.,
Chairman Atomic Safety
& Licensing Board Nuclear Regulatory Commission Washington, D.C.
20555 "Valentine B. Deale, Esq.
Atomic Safety and Licensing Board Panel 1001 Connecticut Avenue N.W.
Washington, D.C.
20036
- Robert M. Lazo, Esq.
Atomic Safety and Licensing Board Panel U.S. Nuclear Regulatory Commission Washington, D.C.
20555 I
Docketing and Service Station Office of the Secretary U.S. Nuclear Regulat'ory Commis s ion Washington, D.C.
20555 Jerome
- Saltzman, Chief Antitrust
& Indemnity Group Nuclear Regulatory Commission.
Washington, D.C.
20555 Thomas Gurney, Sr.,
Esq.
203 North Magnolia Avenue Orlando, Florida 32802 Jack W.
Shaw, Jr.,
Esq.
John E.
Mathews, Jr.,
Esq.
- Mathews, Osborne,
- Ehrlich, McNatt, Cwbelman
& Cobb 1500 American Heritage Life Bldg.
ll East Forsyth Stree t Jacksonv ille, Florida 32202 Robert E.
Bathen Fred Saffer R.W.
Beck
& Associates P.O.
Box 6817 Orlando, Florida 32853
- J.A. Bouknight, Jr.,
Esq.
Lowenstein,
- Newman, Reis, Axelrad
& Toll 1025 Connecticut Avenue N.W.
Washington, D.C.
20036 William C. Wise, Esq.
Suite 500 1200 18th Street N.W.
Washing ton, D. C.
20036 Donald A. Kaplan, Esq.
Janet R.
- Urban, Esq.
John S.
Caragozian, Esq.
Robert Fabricant, Esq.
George M. Pond, Esq.
Antitrust Division Department of Justice P.O.
Box 14141 Washington, D.C.
20044
Atomic Safety and Licensing Board U.S. Nuclear Regulatory Commiss ion Washing ton, D. C.
20555 William H. Chandler, Esq.
- Chandler, O'Neal,
- Avera, Gray Land a Stripling P.O.
Box 0 Gainesville, Florida 32602 Daniel M. Gr ibbon, Esq.
Herbert Dym, Esq.
Joanne B. Grossman, Esq.
Cov 'ng ton a Burling 888 16th Street N.W.
Washing ton, D. C.
20006 Charles R. P.
- Brown, Esq.
- Brown, Pax ton a Williams 301 South Sixth Street P. O.
Box 1418 Ft. Pierce, Florida 33450 Richard S.
- Salzman, Esq.
Atomic Safety and Licensing Board Panel U.S. Nuclear Regulatory Commiss ion Washington, D.C.
20555 Joseph
- Rutberg, Esq; Lee Scott.
- Dewey, Esq.
Frederic D. Chanania, Esq.
Counsel for NRC Staff U.S. Nuclear Regulatory Commis s ion Washing ton, D. C.
20555 A./ pw Robert A.
ablon Attorney for Lake Worth Utilities Authority, New Smyrna Beach Utilities Commission, Sebring Utilities Commission, Gainesville Regional Utilities and the Cities of Alachua,'artow, Ft.
- Meade, Homestead, Key West, Kissimmee, Lake
- Helen, Mt. Dora, Newberry, St.
Cloud, Starke and Tallahassee, Florida and the Florida Municipal Utilities Association
g I