ML17266A461

Requests Commission Enforcement Assistance to Vindicate NRC Conferred Rights to Immediate Resource Recovery Plant Startup

ML17266A461
Person / Time
Site:	Saint Lucie
Issue date:	05/29/1981
From:	Landegger G PARSONS & WHITTEMORE
To:	Hendrie J NRC COMMISSION (OCM)
References
GFL-81-120, NUDOCS 8106040466
Download: ML17266A461 (14)

Text

~ It 0

ihh

~~

INCORPORATED 2OO PARK AVENUE NEW YORK,NEW YORK I OOI7 TKI KX NUMBER NY-4208 rS CABI.K ADDRKSS PARSWHIT '~CQEORGE (P I, 3 F. LANDEGG~

TEI KPHONE (2I2I 072 2OOO May 29, 19 GFL- 20 Honorable Joseph M. Hendrie Qa CO Chairman U.S. Nuclear Regulatory Commission 1717 H Street, N.W.

Room H1149 Washington, D.C. 20555 Re,: Florida Power a Light Company (St. Lucie Plant, Unit No. 2)

Docket No. 50-389A

Dear Mr. Chairman:

Parsons 6 Whittemore, Inc. (PaW) and its wholly-owned subsidiary Resources Recovery (Dade County)., Inc. (RRD) urgently need Commission enforcement assistance to vindicate NRC-conferred rights being flouted by a licensee, Florida Power 6 Light Company. PGW 6 RRD have constructed and hold title to a resource recovery plant in Miami, Florida, with a capacity of approximately 77 mw, that is now ready. to operate, to solve environmental problems, to generate elect-ricity, and to exercise rights conferred by the licensing conditions imposed last month in the above-captioned matter in reliance on representations of the licensee. P&W and RRD have asked the licensee to abide by the licensing conditions.

FP&L has refused. I believe that FPaL's refusal constitutes a "willfulviolation" that requires immediate remedial action.

Accordingly, I have instructed our counsel promptly to file appropriate papers with your staff.

In the context of a settlement proposal, joined by- the NRC staff and the Antitrust Divi'sion of the Department of Justice, FPGL assumed the general obligation to transmi't electricity on behalf,. of any "neighboring entity" ('hether a party to the settlement agreement or not) and, independently, on behalf of any "qualifying facility" within the meaning of the Public Utility Regulatory Policies Act (PURPA}., a law administered by the Federal Energy Regulatory Commission and the State public service commissions. Yet, only five days after those conditions became effective by order of the Atomic Safety and Licensing Board, FPGL refused to comply. FP&L based 3 Q 0 its refusal exclusively on its peremptory and unsubstantiated THE PRESIDENT'5 E AWARD FOR OUTSTANDING COHTRIOUTIONS TO THE EXPORT EXPANSION PROGRAM OF THE UNITED STATES Ia,II06046 '4k'

p4 C

"May 29, 1981 GFL-81-120 Honorable Joseph M. Hendrie Page Two assertion that our resource recovery plant is neither a qualifying facility under PURPA nor a neighboring entity under the settlement. Xn fact, the FERC rules implementing PURPA specify the standards for qualifying facility status.

'-'" ""," The resource recovery'plant squarely meets those standards and is, therefore, a qualifying facility. Similarly, the fits the definition of "neighboring entity" in the 'lant St. Lucie settlement approved by the Licensing Board.

FPGL's refusal continues long-standing efforts to "deter the competitive threat" of electricity generation by resource recovery plants in Florida municipalities. As a result of FPGL's obstruction, a plant now capable of generating electricity with refuse-deriveet fuel in place of. foreign oil sits idle in Miami as. Florida approaches another" ex'er'cise."

summer peak season. The plant urgently needs to be able to "wheeling" rights so as to function now in the public interest selling electricity,to those utilities in Florida that are prepared to cooperate with. the'ational policy, expressed in PURPA, to encourage cogen'eration and small power producti;on by qualifying facilities'. Uncertainty whether we can enforce the right to wheel electricity to be generated at the plant is interfering with our negotiations with potential buyers.

Earlier this year, Mr. Marshall McDonald, Chairman of the Board of FP&L, urged your Commission to speed up a license for the right to operate St. Lucie Plant, Unit No. 2. Mr. McDonald wrote that the unit was 65% completed and he. expressed hi's dismay that although FPGL could complete the unit in October'982 The unit will be operative but remain idle for lack of an operating licen'se for 13 months.

A 13-month. delay in 1982-83, reasoned Mr. McDonald, "must not be permitted to happen" in view of "our nation's policy of reducing dependence on foreign oil" and FP&L's "obligation to maintain reliable service...economically priced..."

Mr. McDonald's reasoning applies with. even more immediate force to the resource recovery plant. Months of del'ay on running a plant that is'alread complete and could serve

~iciht now "must not be permrtted to happen." Mr., McDonald

May 29., 19.81 GFL-81-120 Honorable Joseph M. Hendrie Page Three I

urged'ou "to instruct the NRC staff" to speed up the licensing schedule for St. Lucie Plant, Unit No. 2. We ask you to compel Mr. McDonald's company to a&ide by the law so that the resource

. recovery plant can start up now, and sell electricityow to ..',.

those utilities that are ready to buy it.

Very r u I Ge rg F. egge President.

GFL/km CC: Commissioner John F. Ahearne Commissioner Peter A. Bradford Commissioner Victor Gilinsky Mr. Marshall McDonald, Florida Power 6 Light Company Mr. Merrett Stierheim, Dade County Manager

BEFORE THE UNITED STATES CLEAR REGULATORY COMMISS j BEFORE THE ATOMIC SAFETY AND LICENSING BOARD In The Matter Of 5&

)

Florida Power 8 Light Company ) Docket No. 50-389A

)

(St. Lucie Plant, Unit No. 2) )

MOTION TO ESTABLISH PROCEDURES, FOR A DECLARATION THAT A SITUATION INCONSISTENT WITH THE ANTITRUST LAWS PRESENTLY EXISTS AND FOR RELATED RELIEF Index of A endices. Volume II A endix C (Pages reserved] Cl-6

[Pages reserved] C7-8

[Pages reserved]

MAY27]98f g C9-24 6 Office of f>~ '..

Mtdp 0'yg)~),

LPage reserved] Qfg AQ C25

[Pages reserved] C26-31 In the Matter of Florida Power S Li ht Com an AEC Docket No. 50-, "Application for Licenses Under the Atomic Fnergy Act of 1954 As Amended," for Turkey Point Nuclear Power Project, March 22, 1966 C32-44 Letter from W. J. Clapp of Florida Power Corp.

to Parks E. Baker of Seminole Electric Cooperative, December 7, 1955 C45 Press Release, U.S. Department of Agriculture, Rural Electrification Administration, Re Atomic Power Plants Described at REA 0 Conference, May 15, 1956 C46 FPL Form 12, 1970, 1971, 1972 C47-50

[Pages reserved] C51-67

) L

/'l

~,tw F/

g h q

/p

Volume II Pacae

[Pages reservedj C68-77 (Pages reservedj C78-84

[Pages reservedj C85-89

[Page reservedj C90 (Page reservedj C91 I.Pages reservedj C92-132 (Pages reservedj C133-35 EPage reservedj C136 Excerpts from Cities'nswer to FPL interrogatory C137-83 Report to Florida Operating Committee Working Group, "A Florida Electric Power Pool," by Power Pooling Task Force, February 25, 1975 C184-298 Excerpt from affidavit of Harry C. Luff, NRC Docket Nos. P-636-A and 50-389A, April 13, 1976 C299-305 FPL memorandum, E. L. Bivans to Tracy Danese, re Affidavit of Harry C. Luff, NRC Docket Nos. P-636-A and 50-389A, April 26, 1975 C306-09 FPL memorandum, W. E. Coe to H. L. Allen, re New Interchange Contracts with Florida Power Corp. and Tampa Electric Co.,

February 20, 1976 C310 Excerpt from examination of E. L. Bivans, FERC Docket Nos. ER78-19, et al. C311-12 Energy Broker Sunmary Report, 4/ll/77 C313 (Pages reservedj C314-42

[Pages reservedj C343-69

/Pages reserved) C370-85

Volume II

[Pages reservedj C386-92 LPages reserved] C393-98 Excerpts from transcript, Florida Power S Li ht.

Co., FERC Docket No. E-9574, 9 28 77 C399-402 Excerpt from Exhibit to Application filed by FPL to acquire Vero Beach, "Evaluation of the Impact of the Offer by Florida Power and Light Company to Purchase the Vero Beach Electric System," Ernst S Ernst, 7/76 C403-404 FPL Presentation of Offer Made by FPL for purchase of Vero Beach Electric System C405-410 A endix D FPL internal documents showing FPL awareness of early Key West., Vero Beach and New Smyrna Beach interest in nuclear power D1-3 Letter from Atomic Energy Commission to Alex Radin of American Public Power Association re feasibilty of small nuclear plants, March 2, 1961 Handwritten notes re 1966 Homestead Turkey Point request, January 13, 1966 Letter from R. H. Fite to O. R. Pearson of Homestead re response to Homestead request for wholesale power, October 3, 1967 D10-11 FPL Open Letter to Residents of Vero Beach re benefits of FPL ownership of electric system, September 4, 1976 D12 Preliminary Proposal of Electric Utility Service for New Smyrna Beach by FPL, 1974 D13-30 "Comparative Analysis of Municipal $ Investor Owned Utilities and the Benefits to Their Customers," Financial Planning, December ll, 1973 D31-33 Documents showing FPL municipals-cooperatives strategy, 7/30/76 D34-39

Pacae Excerpts from Cities'nswer to FPL interrogatory D40-121 FPL Memorandum from R. J. Gardner to F. E. Autrey re solid waste generation, September 19, 1973 disposal,'ower D122-30 Letter from R. F. Risavy of Allis-Chalmers to E. Bivans re enclosed paper by R. E. Bathen on proposed Florida Municipal Power Pool, March 30, 1966 D131-54 Letter from W. J. Clapp to F. S. Black, R. H. Fite, C. A. Lilly, Jr. re R. E. Bathen's "Potential Florida Municipal Power Pool," 7/11/67 D155-58 FPL Memorandum from H. W. Page to M. McDonald re legislation for municipal electric cooperatives; municipal power pool, December 21, 1971 D159 Report, "Yankee-Dixie Coordinated Plan For Providing Low Cost Power to the Eastern United States," June 1966 D160-205 Report, "The Twelve City Story," Robert E.

Bathen, R.W. Beck R Associates, October 26, 1970 D206-222 FPL Memorandum from B. H. Fuqua to A. M. Davis re legislation for municipal electric cooperatives, 5/3/71 D223-24 Handwritten notes of J. G. Spencer re threat of municipal ownership D225 FMUA documents re possibilities of municipal interconnection throughout Florida D226-33 Excerpts from reports on New Smyrna Beach Utilities Commission meeting, 12/12/66 D234-38 Letter from John R. Kelly of Gainesville to A. B. Hopkins of Tallahassee re Gainesville v. Florida Power Cor intertie cases before FPC, 7 16 68 D239-40 Agenda packet for Senior Management Council meeting of 8/6/75 D241-53

Volume II Pacae Proposal for i%ew Charter for Senior Management Planning Council, 8/26/75 D254-58 Documents showing FPL efforts to obtain industrial load, 1978 D259-64 t.Pages reserved] D265-79 f.Pages reservedj D280-308 Excerpt from Hational Power Survey of 1964, re coordinated planning D309-10 (Pages reservedj D311-18 Excerpt from "Brief of Petitioner Florida Power & Light Company," FPL v. FERC, Case iVo. 80-5259, July 28, 1980 D319-24 Newspaper advertisement, The Wall Street Journal, March 30, 1976, "In Support of Nuclear Energy," Edison Electric Institute D325 Excerpt from transcript, Florida Power 6 Li ht Co., FERC Docket No. E-9574 Phase I 6 II D326-28 6+27/77

t BEFORE THE UNITED STATES NUCLEAR REGULATORY COMMISSION t

BEFORE THE ATOMIC SAFETY AND LICENSING BOARD Zn The Matter Of )

)

Florida Power 8 Light Company ) Docket No. 50-389A

)

(St Lucie Plant, Unit No. 2)

~ )

MOTION TO ESTABLISH PROCEDURES'OR A DECLARATION THAT A SITUATION INCONSISTENT WITH THE ANTITRUST LAWS PRESENTLY EXISTS AND FOR RELATED RELIEF Index of A endices Volume IZI Page A endix I Florida Power 6 Light System Planning Department Appraisal of Potential Market for Firm Power, July 9, 1976 I 1-12 Presentation/Proposal by Florida Power Light to New Smyrna Beach for Purchase of Municipal System, 1974 I 13 - 36 Letter from Sebring Citizen Regarding Acquisition of Sebring System by Florida Power Light, March 15, 1962 S I 37 Letter from R. C. Fullerton, Executive Vice President of FPL, in response to letter from Sebring citizen, with cover letter sent to J. S. Gracy, Senior Vice President, Florida Power Corp. I 38-39 Internal and external exchange of letters concerning FPL's refusal to consider purchase of Lake Helen municipal systems, 1958, 1956 I 40-43 Letter from W. J. Clapp, President, Florida Power Corp., to Parks E. Baker, President, Seminole Electric Cooperative (with blind copy sent to R. H. Fite, President, FPL)

Excerpt from editorial, Public Service Magazine, July, 1956 (quoting R. H. Fite, President of FPL, in opposition to municipal ownership of Lake City power), showing municipal recognition of importance of nuclear power k

I 45

r ~

Volume III Exchange of letters on refusal to sell wholesale power to City of Arcadia

( from City to Florida Power, from W. J. Clapp to R. H. Fite, R. H. Fite to W. J. Clapp) I 46-48 Telegram to Citizens Committee, City of Winter Garden, from R. H. Fite, refusing to sell wholesale power to a municipal within FPL's service area (copy sent to W. J. Clapp), 1963 I 49 Report of Fact Finding Committee to Haines City, reporting unavailability of outside wholesale power to replace franchise of Florida Power Corp. I 50-54 Excerpts from FPL advertising, showing that it held itself out as competing throughout Florida against, municipal utilities I 55-57 Article from Electrical World, FPL Communications Coordinator A. P.X.

Bothwell, stressing importance of statewide rate comparisons I 58-59 Memorandum by R. Gardner, FPL Vice President for Planning, 1976 I 60-72 FPL internal memorandum detailing FPL opposition to construction of generating plant by Seminole Electric Cooperative, 1952 I 73-76 Second page of a letter from R. H. Fite to Senor Smathers (blind copy to W. J. Clapp) I 77 Letter from A. B. Wright, FPL, to J.T. Bensley, Director of Utilities, New Smyrna Beach, November 25, 1970 I 78-79 Excerpts from deposition of Richard C.

Fullerton, Chairman of Board of Directors, FPL, Gainesville Utilities

v. FPL, M.D. Fla. No. 68-306-CIV-J I 80-84 FPL Reply Memorandum, filed before Federal Energy Regulatory Commission, Docket No. ER77-550, June 1, 1978 I 85-88

Volume III Unsigned. territorial agreement between Florida Power Corp. and FPL (with cover letter dated January 30, 1961) I 89-110 FPL internal memorandum from R. J. Gardner on planning, February 12, 1976 I 111-127 Excerpts from May 12, 1981 deposition of Marshall McDonald, Chairman and Chief Executive Officer of FPL, taken in Cit of Gainesville, et al. v. FPL, M.D. Fla. No. 79-5101-Civ-JLK I 128-132 Letter from McGregor Smith to W. J. Clapp, August 1, 1962 I 133-134 Letter from W. J. Clapp to R. H. Fite, July 24, 1964 I 135 I 136-139 Excerpts from Memorandum of FPL in Opposition to Motion to Dismiss, filed in Gainesville Re ional Utilities, et al. v. FPL, Docket No. 79-5101-Civ-JLK, September 30, 1980 I 140-147 Consent Decree, United States v. Florida Power Cor . and Tam a Electric Co., M.D. Fla.

No. 68-297-T, filed July 19, 1971 I 148-153 I 154-155