ML17297A621

From kanterella
Jump to navigation Jump to search
Application for Amend to CPs to Reflect Transfer of 5.7% Ownership Interest by Salt River Project Agricultural Improvement & Power District to Los Angeles Dept of Water & Power.Supporting Financial & Antitrust Info Encl
ML17297A621
Person / Time
Site: Palo Verde  
Issue date: 07/31/1981
From: Van Brunt E
ARIZONA PUBLIC SERVICE CO. (FORMERLY ARIZONA NUCLEAR
To:
Shared Package
ML17297A619 List:
References
NUDOCS 8108030361
Download: ML17297A621 (21)


Text

UNITED STATES OF AMERICA NUCLEAR REGULATORY COMMISSION In t:he Matter of ARIZONA PUBLIC SERVICE COMPANY, et al.

(Palo Verde Nuclear Generating)

Station, Units 1, 2 and 3)

)

)

DOCKET NOS.

STN 50-528 STN 50-529 STN 50-530 APPLICATION FOR AMENDMENT TO CONSTRUCTION PERMITS NOS.

CPPR-141, CPPR-142 and CPPR-143 Pursuant to Section 101 of the Atomic Energy Aci of 1954, as

amended, and 10 CFR 550.90, Arizona Public Ser-vice Company (APS),

as Project Manager of the Palo Verde Nuclear Generating Station (PVNGS) Units 1, 2 and 3, submits herewith this "Application for Amendment to Construction Permits Nos.

CPPR-141, CPPR-142 and CPPR-143."

The purposes of this Application are twofold:

First, this Application requests the amendment, of each of Construction Permits Nos.

CPPR-142 and CPPR-143 to reflect the transfer by Salt River Project Agricultural Im-provement, and Power District (SRP) to the Los Angeles Depart-ment of Water and Power (LADWP) of a 5.7% undivided owner-ship interest as a tenant in common with the other Partici-pants in PVNGS,,Units 1, 2 and 3, upon notice to the Commis-sion by APS that Palo Verde Unit 1 has been placed into commercial operation.

8i080303bi 81073i PDR ADOCK 05000528 A

PDR.

II

Second, this Application requests the amendment of each of Construction Permits Nos.

CPPR-141, CPPR-142 and CPPR-143 to reflect the transfer by SRP to the Southern California Public Power Authority (SCPPA) of a 5.91% un-divided ownership interest as a tenant in common with the other Participants in PVNGS Units 1, 2 and 3.

En support of this Application, APS states as fol-lows:

l.

On May 2S,

1976, the Nuclear Regulatory Com-mission issued permits to construct PVNGS Units 1, 2 and 3

(CPPR-141, CPPR-142 and CPPR-143, respectively),

to Joint Applicants

APS, SRP, El Paso Electric Company (EPE), Public Service Company of New Mexico (PNM), Southern California Edison Company (SCE),

and Arizona Electric Power Coopera-tive, Inc.

(AEPCO).

2.

On April 19,

1978, the Nuclear Regulatory Commission issued Amendment No. 1'o each of Construction Permits Nos.

CPPR-141, CPPR-142 and CPPR-143.

Amendment No.

1 deleted AEPCO as a co-owner in PVNGS Units 1, 2 and 3, and reflected the transfer by AEPCO of its 2.4% ownership interest as follows:

1% to APS, 1% to SRP, and 0.4% to SCE.

3.

On October 1,

1979, APS, on its own behalf and as agent for all other Joint, Participants, filed with the Nuclear Regulatory Commission a joint application for the issuance of operating licenses 'for PVNGS Units 1, 2 and and 3.

The joint applicants for such application were iden-tified as follows:

Joint A licants Undivided Interest APS SRP SCE EPE 29.1%

29.1%

15 '%

15.8%

10.2%

4.

As set. forth in such application, pursuant to an agreement dated August 18,

1977, between SRP and
LADWP, SRP will transfer to LADWP, and LADWP will acquire from SRP, a

5.7% undivided ownership interest as a tenant in common with the other Participants in PVNGS, including each of Units 1, 2

and 3,

at.

such time as Palo Verde Unit l. is placed into commercial operation.

Such application seeks the approval of the transfer by SRP to LADWP, and the ac-quisition by LADWP from SRP, of such ownership interest in PVNGS Units 1, 2

and 3, as and when such transfer and ac-quisition shall become effective.

A copy of the agreement between SRP and IADWP is provided in Appendix 1A of the "Palo Verde Nuclear Generating Station Units 1,

2 and 3

(Docket Nos.

STN 50-528/529/530),

Financial Information In Support Of Application for Amendment. to Construction Permits Nos.

CPPR-141, CPPR-142 and CPPR-143" (hereinafter sometimes referred to as "Financial Information Regarding LADWP and SCPPA")

5.

Because the transfer by SRP to LADWP is re-quested to become effective at such time as Palo Verde Unit

P

1 is placed into commercial operation, the only construction permits that'need to be amended to reflect the transfer are those for PVNGS Units 2

and 3, CPPR-142 and CPPR-143, re-spectively.

6.

The following information pertaining to I'ADWP is submitted in support and as a part of this Application.

a.

The general information required by 10 CFR 550.33.

Such information is submitted under separate cover of even date herewith in the form of additions to the "Palo Verde Nuclear Generating Station Units 1, 2

and 3

(Docket Nos.

STN 50-528/529/530),

General Information, Op-erating I.icense Application."

b.

The financial c{ualifications information required by 10 CFR 550.33(f).

Such information is contained in a separate document supplied herewith and entitled "Palo Verde Nuclear Generating Station Units 1, 2 and 3

(Docket Nos.

STN 50-528/529/530),

Financial Information In Support Of Application for Amendment to Construction Permits Nos.

0 CPPR-141, CPPR-142 and CPPR-143."

The financial information provided in such document consists of responses to eleven guestions provided informally by the NRC Staff to APS at a meeting on May 18, 1981.

c.

The antitrust. information required by 10 CFR 550.33a and 10 CFR Part 50, Appendix E.

Such informa-tion is contained in a separate document supplied herewith and entitled "Palo Verde Nuclear Generating Station Units 1,

2 and 3

(Docket. Nos.

STN 50-528/529/530),

Information Re-quested by the Attorney General for Antitrust Review In Support Of Application for Amendment to Construction Permits Nos.

CPPR-141, CPPR-142 and CPPR-143."

LADWP has been the subject of antitrust review by the Attorney General on three previous occasions.

The most recent occasion was in connec-tion with LADWP's participation in Palo Verde Nuclear Gener-ating Station Units 4 and 5 (Docket Nos.

50-592 and 50-593).

The Attorney General rendered his advise by letter dated February 22,

1979, and published in the Federal RecCister on March 7,

1979 (44. Federal Re ister 12513).

Prior to that occasion LADWP had been subject to antitrust review in con-nection with the Sundesert Nuclear Plant, Units 1 and 2

(Docket Nos.

50-582 and 50-583) and the San Joaquin Nuclear Project.

The antitrust information accompanying this Appli-cation references the prior filings by LADWP and updates such filings as necessary.

7.

SCPPA is a public entity created pursuant to Section 6600 et sect.

of the California Government Code and the Joint Powers Agreement among its members dated as of November 1, 1980.

A copy of such agreement is being sub-mitted under separate cover of even date herewith as Appen-dix 6A to the "Palo Verde Nuclear Generating Station Units 1,

2 and 3 (Docket Nos.

STN 50-528/529/530),

General Infor-

mation, Operating License Application."

The members of SCPPA and the percentage participation in SCPPA of each member are as follows:

Member Percentage Partici ation Los Angeles Department of Water' Power City of Burbank City of Glendale City of Pasadena City of Riverside City of Anaheim City of Colton City of Azusa City of Banning City of Vernon Imperial Irrigation District 62%

4%

40/

40/

50/

7.5%

l/o lo/

.1%

4.5%

6%

The Joint Exercise of Powers Act (California Government, Code Section 6500 et seq.)

provides that public agencies may enter into joint exercise of powers agreements to exercise any power which is common to the contracting parties.

The Joint Powers Agreement.

which creates SCPPA authorizes SCPPA to finance,

acquire, construct, maintain and operate one or more generation or transmission projects.

In that connec-

tion, SCPPA may acquire an interest in real and personal
property, including generation plants or transmission sys-
tems, for the purpose of delivering electrical. power and energy.

SCPPA may also acquire, by exercise of the power of

eminent domain or otherwise, real or personal property, may sue or be

sued, may employ agents and employees and may exercise other similar powers in order to carry out the foregoing powers.

SCPPA is also specifically authorized to sell and deliver bonds in accordance with the provisions of the Joint Exercise of Powers Act for the purpose of acquir-ing or constructing one or more projects and to issue notes for such purposes.

8.

SCPPA is governed by a Board of Directors which is composed of the Chief Executive Officer of the electric utility of each member or the designee of such Chief Executive Officer.

The Board of Directors holds reg-ular meetings and elects its own officers.

9.

SCPPA was created to finance various genera-tion and transmission projects on behalf of its members.

Et is not necessary that all the members participate in each project.

However, each member that desires to participate in a generation or transmission project to be undertaken by SCPPA will have the opportunity to participate in such pro-ject.

10.

'SCPPA issues revenue bonds to pay for the construction and the costs of any generation or transmission project in which it participates.

These bonds are secured by power sales contracts between SCPPA and some or all of its members which obligate the contracting members to pro-vide sufficient, funds to SCPPA to pay debt service associ-ated with SCPPA's revenue bonds and costs associated with

M

the operation and maintenance for such project.

Pursuant to such power sales contracts, SCPPA retains the ownership in-terest in a generation or transmission project but is obli-gated to sell to such of its members that enter into power sales contracts 100% of its right or entitlement to partici-

~

pate in the capacity, energy or service of a generation or transmission project.

11.

Pursuant.

to the "Palo Verde Nuclear Generat-ing Station Assignment Agreement between Salt; River Project Agricultural Improvement and 'Power District. and Southern California Public Power Authority" (Assignment Agreement),

to be executed by SCPPA and SRP substantially in the form as provided in Appendix 2A of the Financial Information Regard-ing IADNP and

SCPPA, SRP will transfer to SCPPA, and SCPPA will acquire from SRP, on the Closing Date as defined in the Assignment, Agreement, a

5.91% undivided ownership interest as a tenant in common with the other Participants in PVNGS Units 1, 2 and 3.

Consummation of the transfers and assign-ments contemplated by the Assignment Agreement is subject. to receipt, of (a) in the case of both SRP and

SCPPA, the appro-val of the Nuclear Regulatory Commission and (b) in the case of SCPPA, (i) the authorization by each member of SCPPA of the issuance of indebtedness by SCPPA in order for SCPPA to pay SRP for the interests assigned and transferred, and (ii) the approval by the governing body of each member purchasing output of SCPPA's interest in PVNGS of the contract with SCPPA under which such purchase will be made.

12.

The following information pertaining to SCPPA is submitted in support and as a part of this Application:

a.

The general information required by 10 CFR 550.33.

Such information is submitted under separate cover of even date herewith in the form of additions to the "Palo Verde Nuclear Generating Station Units 1,

2 and 3

(Docket Nos.

STN 50-528/529/530),

General Information, Oper-ating License Application."

b.

The financial information required by 10 CFR 550.33(f).

Such information is contained in a separate document submitted herewith and entitled "Palo Verde Nuclear Generating

Station, Units 1,

2 and 3

(Docket Nos.

STN 50-528/529/530),

Financial Information In Support Of Appli-cation for Amendment to Construction Permits Nos.

CPPR-141, CPPR-142 and CPPR-143.""

The financial information provided in such document consists of responses to eleven questions provided by the NRC Staff to APS at a meeting on May 18,"

1981.

c.

The antitrust information required by 10 CFR 550.33a and 10 CFR Part 50, Appendix L.

Such informa-tion is contained in the document submitted herewith and entitled "Palo Verde Nuclear Generating Station Units 1, 2

and 3 (Docket Nos.

STH 50-528/529/530),

Information Requested by the Attorney General for Antitrust Review In Support Of Application for Amendment to Construction Permits Nos.

CPPR-141, CPPR-142 and CPPR-143."

d.

The environmental information required by 10 CFR Part 51.

Such information is incorporated in Supplement 3 to the "Palo Verde Nuclear Generating Station Units 1, 2

and 3 (Docket Nos.

STN 50-528/529/530),

Environ-mental Report - Operating License Stage,"

which is being submitted under separate cover of even date herewith.

13.

The contemplated transfers of partial owner-ship to LADWP and SCPPA do not. involve any design or other physical change to

PVNGS, any change in the transmission or other facilities associated with PVNGS, any change in the types or amounts of effluents from PVNGS, any change in the potential for accidental releases from PVNGS or any change in the authorized power level of PVNGS.

Accordingly, the proposed amendments to the PVNGS Units 1, 2 and 3 construc-tion permits do not present.

an unreviewed environmental im-pact.

Pursuant to 10 CFR 551.5(d)(4),

no environmental impact statement, negative declaration, or environmental impact ap-praisal need be prepared in connection with the proposed amendments.

14.

The contemplated transfers of partial owner-ship to LADWP and to SCPPA do not involve any change in the responsibility to be exercised by APS, as Project Manager and Operating

Agent, over the physical construction, opera-tion and maintenance of PVNGS Units 1, 2 and 3, or in the responsibility of APS to act, on behalf of all joint owners of PVNGS in connection with applications for construction

permits.

and operating licenses, and amendments to such per-mits and licenses.

Accordingly, the proposed amendments to the PVNGS Units 1, 2

and 3 construction permits are deemed not to involve a "significant hazards consideration" as that phrase is used in 10 CFR 552.105 and 50.91, and Section 189a of the Atomic Energy Act of 1954, as amended.

WHEREFORE, APS requests the following relief:

1.

That following issuance of an operating li-cense for Palo Verde Unit 1, upon the written notification to the Director of the Office of Nuclear Reactor Regulation by APS that Palo Verde Unit 1 has been placed into commer-cial operation, the caption of each of Construction Permits Nos.

CPPR-142 and CPPR-143 be amended by the addition of a 1

reference to Eos Angeles Department of Water and Power as an applicant.

2.

That. the caption of each of Construction Per-mits Nos.

CPPR-141, CPPR-142 and CPPR-143 be amended by the addition of a reference to Southern California Public Power Authority as an applicant.

Respectfully submitted, Arizona Public Service C

pa Dated:

July 3l, 1981 Edwin E. Van Brunt:, Jr.

Vice President Nuclear Projects On its own behalf and as agent for all other joint participants 0

VERIFICATION STATE OF ARIZONA

) ss.

County of Maricopa

)

Edwin E.

Van Brunt, Jr.,

being first duly sworn, upon his oath deposes and says:

That he is Vice President, Nuclear Projects, of Arizona Public Service Company, that the foregoing document has been signed'y him on behalf of Arizona Public Service Company with full authority so to do, that he has read such document and know its contents, and that to the best of his knowledge and belief, the statements made therein ar t e.

of Bury Edwin E.

Van Brunt,. Jr.

','ubscribed and sworn to before me this;+g day 1981.

My'ommission expires:

$y Commission Expires June 24, LID)

Not ry Public

,.ly Commission Expires June 2f, M83 I

l ~

f l

C D

. ~

~'