ML18018B794

Responds to Questions Re Statewide Organization of Electric Cooperatives in State of Nc.General Status of Negotiations W/North Carolina Electric Membership Corp in Various Documents Filed Periodically W/Sec

ML18018B794
Person / Time
Site:	Harris
Issue date:	10/19/1984
From:	Zimmerman S CAROLINA POWER & LIGHT CO.
To:	Toalston A Office of Nuclear Reactor Regulation
References
NUDOCS 8410290138
Download: ML18018B794 (9)

Text

RfGULATO({'i INFORMATION DISTRIBUTION S~EM (RIBS)

ACCESSION NBR:8410290136 DOC,DATE: 84/10/19 NOTARIZED: NO DOCKET FACIL:50-400 Shearon Harris Nuclear Power BYNAME Planti Unit 1, Carolina 05'0'00400 AUTH AUTHOR AFFILIATION ZIMMERMANiS,R. Car ol ina Power 8 Light Co ~

RECIP ~ NAME RECIPIENT AFFILIATION TOALSTONgA ~ LE Site Analysis Branch 1

SUBJECT:

Responds to questions re statewide organization of electric cooperatives in State of NC Genera'l status of negatiations w/North Carolina Electric Membership Corp in various documents filed periodically w/SEC ~

DISTRIBUTION CODE: Z999D, COPIES RECEIVED: LTR ENCL SIZE!

TITLE: Antitrust Information NOTES:

RECIPIENT COPIES RECIPIENT COPIES ID CODE/NAME LTTR ENCL ID CODE/NAME LTTR ENCt NRR/DL/ADL 1 0 NRR LB3 BC 1 0 NRR LB3 LA 10 1 1 BUCKLEYiB 01 1 1 INTERNAL: ELD 06 3 3 NRR/DE/AEAB 09 1 1-E FILE 00 1 1 EXTERNAL: LPDR 03 1 1 NRC PDR 1 NSIC 05 1 1 NTIS 1 1 TOTAL NUMBER OF COPIES REQUIRED: LTTR 13 ENCL 11

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CSQP Carolina Power & Light Company October 19, 1984 Mr. Argil L. Toalston Siting Analysis Branch Division of Engineering U. S. Nuclear Regulatory Commission Washington, D. C. 20555 SHEARON HARRIS NUCLEAR POWER PLANT UNIT NO. 1 DOCKET NO. 50-400 ANTITRUST REVIEW OPERATING LICENSE STAGE

REFERENCE:

February 16, 1984 Letter/M. A. McDuffie to A. L. Toalston

Dear Mr. Toalston:

In accordance with your recent telephone conversation with Mr. R. S. Stencil concerning the Harris Plant antitrust review, I am providing responses to your questions regarding the statewide organization of the electric cooperatives in North Carolina.

Should you have any questions regarding this information, please call Mr. Stancil at (919) 836-6722.

Yours very truly, S. . mmerman Manager Nuclear Licensing Section PJL:plbT39(1752)

Attachment cc: Ms. S. F. Flynn Mr. R. S. Stancil Mr. B. Vogler(NRC) 841029O>~~ 0 50OO408'4ioi~ .

PDR ADOCH pOR wag@'(

411 Fayettevilte Street ~ P. O. Box 1551 o Raleigh, N. C. 27602

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Harris Antitrust Submittal NRC Data Request //2 Item 1 Page 1 of 2 Question 1:

Please give a brief description of the electric cooperatives statewide organizations in North Carolina and their functions.

Response

There are currently twenty-eight electric membership cooperatives (EMCs) providing service in North Carolina. Of the twenty-eight, eighteen are wholesale customers of CP&L. These eighteen EMCs are as follows:

Brunswick EMC Lumbee EMC Carteret-Craven EMC Pee Dee EMC Central EMC Piedmont EMC Four County EMC Pitt & Greene EMC French Broad EMC Randolph EMC Halifax EMC South River EMC Harkers Island EMC Tideland EMC Haywood EMC Tri-County EMC Jones-Onslow EMC Wake EMC The EMCs in North Carolina have formed three separate nonprofit statewide corporations: the North Carolina Association of Electric Cooperatives (NCAEC), the North Carolina Electric Membership Corporation (NCEMC), and the Tarheel Electric Membership Association (TEMA). Each of these corporations has a manager and a Board of Directors. The managers of NCAEC, NCEMC, and TEMA report to the executive vice president of the NCEMC, who supervises the operations of the three organizations.

NCAEC is the general association for the North Carolina EMCs. It receives financial support in the form of dues from its members, which include all 28 North Carolina EMCs. It provides various types of administrative services to its members such as job training and safety, communications, public relations, and educational services. Its Board consists of 28 directors, one from each member EMC.

Harr s Antitrust Submittal NRC Data Request 82 Item 1 Page 2 of 2 NCEMC also receives financial support in the form of dues from its members, which include 27 of the 28 North Carolina EMCs. It provides its membership with services such as engineering and technical support, and assistance with economic and community development. Its Board consists of 27 directors, one from each member EMC. The one EMC which is not currently a member of NCEMC is French Broad EMC.

TEMA is a central purchasing and materials supply operation serving the 28 North Carolina EMCs. Unlike NCAEC and NCEMC, T&fA is not supported by dues collected from its members. It obtains its operating revenue from the sale of materials to its members. Its Board consists of nine directors, three representing the Coastal 'EMCs, three representing the Eastern EMCs, and three representing the Western EMCs.

The information provided above represents CPSL's understanding of the EMC's organization in North Carolina and is based on general information available to the Company.

Harris Antitrust Submittal NRC Data Request 82 Item 2 Page 1 of 2 Question 2:

Nhat is the status of negotiations between CP&L and the North Carolina Electric Membership Corporation (NCEMC)?

Response

The Company has disclosed the general status of negotiations with the NCEMC in various documents filed periodically with the Securities and Exchange Commission. The following are excerpts regarding this matter from the Company's 1983 Form 10-K and 1984 Form 8-K and 10-Q filings.

Excer t From CP6L Form 10-K for 1983 Filed 4/1/84, Other Matters, a e 26 In August 1977, North Carolina Electric Membership Corporation (NCEMC) and 16 of its 18 members who receive wholesale service from the Company filed an antitrust action in the United States District Court in Greensboro, North Carolina, seeking damages of not less than

$ 50.4 million, before trebling, and injunctive relief requiring the Company to provide wheeling services to NCEMC and to deal with NCEMC in respect of certain other power services. The Company has denied the charges contained in the NCEMC's complaint. In the opinion of General Counsel of the Company, the contentions of NCEMC and its members in this litigation are without merit, and the Company should ultimately prevail.

In March 1982, a two-year stay order was entered in this proceeding. The Company and NCEMC have begun negotiations for a possible purchase of a portion of the Company's electric generating capacity by NCEMC. If a sale is concluded, the complaint in this proceeding will be dismissed with prejudice. By consent order, the stay has been extended to June 2, 1984. The Company cannot predict the outcome of this matter.

Harry~ Antitrust Submittal NRC Data Request //2 Item 2 Page 2 of 2 Excer t From CP&L Form 8-K, Filed 6/15/84, Item 5, ara ra h 10 The Company has notified the United States District Court that, despite the best efforts of the Company and the NCEMC, no agreement regarding the sale of generating and transmission facilkties had been reached by the expiration of the Court's stay order. The parties have indicated a desire to continue negotiations at least through August 1, 1984. The Company cannot predict the outcome of this matter.

Excerpt From CP&L Form 10- For uarter Ended 6/30/84, Item 5, The parties have indicated a desire to continue negotiations at least through October 31, 1984. The antitrust case has been reactivated since the stay has expired and an initial pretrial conference was held on July 16, 1984. The United States District Court for the Middle District of North Carolina issued an Initial Pretrial Conference Memorandum and Order on July 20, 1984 ordering that each party proceed with appropriate discovery and that all general discovery be completed on or before July 16, 1985. Additional time was granted for discovery with respect to certain expert witnesses. The Company cannot predict the outcome of this matter.

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~ C Harris Antitrust Submittal NRC Data Request 82 Item 3 Page 1 of 1 Question 3:

What. is the current status of EPIC?

Response

It is CPGL's understanding that EPIC (Electric Power in the Carolinas) ceased to function as a group in the mid-1970's, and that the Corporation was formally dissolved in March 1977.