ML17297B347

Responds to Request for Advice Re Transfer of Ownership Interest in Util.No Antitrust Hearing Necessary Based on Review of Info Submitted

ML17297B347
Person / Time
Site:	Palo Verde
Issue date:	02/11/1982
From:	Baxter W JUSTICE, DEPT. OF
To:	Shapar H NRC OFFICE OF THE EXECUTIVE LEGAL DIRECTOR (OELD)
Shared Package
ML17297B346	List: ML17297B347
References
ISSUANCES-A, NUDOCS 8203220054
Download: ML17297B347 (3)

Text

V.S. Department of Justice Antitrust Divisi Office of the Assistant A ttorney General Washington, D.C -20S30 February 'll, 1982

~'ESIGKGXD OBIGIRQJ Howard K. Shapar, Esquire Executive Legal Director 'Certif165 Bg United States Nuclear @'i-":"7"'e:

'Regulatory Commission Washington, D.C. 20555 Arizona Public Service Company Palo Verde Nuclear Generating Station, Units 1, 2 and 3 NRC Docket Nos. 50-528A/529A/530A

Dear Mr. Shapar:

You have requested our adv'ice pursuant to the provisions of Section 105c of the Atomic Energy Act of 1954, as amended, in regard to a transfer of ownership interest-in the above referenced units by Salt River Project Agricultural Improvement and Power District ("SRP") to the'Los Angeles Department of Water and Power ("LADWP") and to the Southern California Public Power Authority ("SCPPA") 1/ Under the proposed transfer,

~

LADWP will acquire a 5 ' percent interest, and SCPPA will acquire a 5.91 percent interest in each of the three 1270 megawatt units'he Palo Verde Nuclear Generating Station

("PVNGS") is located near Phoenix, Arizona. LADWP and the members of SCPPA are California utilities.

LADHP has been the subject of antitrust review on three previous occasions. The most recent occasion was in connection with LADWP's participation in PVNGS Units 4 and 5. he Department of Justice advised the Nuclear Regulatory Commission by letter dated February 22, 1979 that the participation of 1/ he SCPPA is an entity formed pursuant to California law for the purpose of financing,'cquiring, constructing, maintaining, and operating generation and transmission projects. The members of, and their percentage participation in SCPPA are: Los Angeles Department of Water (62%), City of Burbank (4%), City of Glendale '(4%), City of Pasadena (4%),

City of Riverside (5%), City of Anaheim (7.5%), City of Colton (1%), City of Azusa (1%), City of Banning (1%), City of Vernon (4.5t), and Imperial Irrigation District (6t).

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LADWP in PVAGS Units 4 and 5 would not create or maintain a situation inconsistent with the antitrust laws. 2/

Some of the members of SCPPA were the subject of antitrust review in connection with the Sundesert Nuclear Plant, and the San Joaquin Nuclear Project. On November 24, 1975 the Department advised that no hearing was required in connection with the Cities of Anaheim, Glendale, Riverside and Pasadena participating in the San Joaquin Nuclear Project. On.

September 2, 1977 the same advice was given in connection with the four cities participating in the Sundesert Nuclear Plant-We advised on July 17, 1978 that participation by the City of Burbank in the Sundesert Project would not require an antitrust hearing. We also advised on January 31, 1980, that Participation by the Cities of Anaheim and Riverside in San Onofre Nuclear Generating Company, Units 2 and .3. would not require an antitrust hearing.

Our review of the information submitted in connection with the current application, as well as other relevant information, has disclosed no'vidence that would warrant a change of our earlier advice with respect to LADWP,-menthe members of SCPPA that were the subject of prior antitrust review. We are not

.aware of any evidence that the other members of SCPPA have engaged in any conduct that might warrant further antitrust scrutiny- Accordingly, it is the Department's view that no antitrust hearing is necessary with respect to the proposed transfers of ownership-S ncerely,

~l(gi<( u/

William F. Baxter Assistant Attorney General Antitrust. Division 2/ LADWP was also the subject of antitrust review in connection with the Sundesert Nuclear Plant, Units 1 and 2and the San Joaquin Nuclear Project. In both reviews the Department advised that antitrust hearings were not required.

Identical Letters sent to:

The Honorable Morris K. Udall, Chai rman Subcommittee on Energy and the Environment Committee on Interior and Insular Affairs United States House of Representatives Washington, D.C. 20515 cc: Rep. Manuel Lujan The Honorable Richard L. Ottinger, Chairman Subcommittee on Energy Conservation and Power Committee on Energy and Commerce United States House of Representatives Washington, DC 20515 cc: Rep. Carlos Moorhead The Honorable Alan Simpson, Chairman Subcommittee on Nuclear Regulation Committee on Environment and Public Works United States Senat'e Washington, DC 20510 cc: Senator Gary Hart The Honorable Toby Moffett, Chairman Subcommittee on Government Operations United States House of Representatives Washington, DC 20515 cc: Rep. Joel Deckard