ML19209C519

Forwards Attorney General Re Addl Antitrust Advise Per Atomic Energy Act of 1954,Section 105c.Petition to Intervene & Request for Hearing May Be Filed within 30 Days

ML19209C519
Person / Time
Site:	Comanche Peak
Issue date:	10/01/1979
From:	Saltzman J Office of Nuclear Reactor Regulation
To:	Brittain P TEXAS UTILITIES ELECTRIC CO. (TU ELECTRIC)
References
NUDOCS 7910160058
Download: ML19209C519 (5)

Text

/Yf('

f/)/C

,,{,..s),

UNITED STATES y % e m*', c[pdf.. i NUCLEAR REGULATORY COMMISSION K

WASHINGTON, D. C. 20555 "efG1/!

,-[pj[{O$[

CCT 1 1979 Docket Nos. 50-445A 50-446A Texas Utilities Generating Company ATTN: Mr. Perry G. Brittain President 2001 Bryan Tower Dallas, Texas 752G1 Gentlemen:

With reference to the operating license application for Comanche Peak Steam Electric Station, Units No. I and No. 2, the Attorney General has furnished the Commission additional antitrust advica pursuant to section 105c of the Atomic Energy Act of 1954, as amended. A copy of the Attorney General's letter dated September 25, 1979, is enclosed for your information.

We are also transmitting to the Office of the Federal Register a copy of the Attorney General's advice for publication.

It should be noted that pursuant to section 2.714 of the Commission's Rules of Practice,10 CFR Part 2. a petition for leave to intervene and request for hearing on the antitrust aspects of the application may be filed by any person whose interest may be affected within thirty (30) days after publication of the notice in the Federai Register.

Sincerely, 7slIERCME SMm,gy Jarome Saltzman, Chief Antitrust and Indemnity Group Office of Nuclear Reactor Regulation

Enclosure:

Attorney General's Letter cc: Joseph Knotts, Esq.

1147 155

.7 91016 00 5F

~~

M*

Elmt:b 6!2!:s D:partm nt of hStitt ywpx

^ ^ "

% A5HINGToN, D.C. 20530 W) asstvaast attoegev cgggnat 2 5 SEP 1979 dc dre K.

Snapar, Esquire Executive Legal Director Nuclear Regulatory Commission Washington, D.

C.

20555 Re:

Texas Utilities Generating Company, Comanche Peak Steam Electric Station, Units 1 and 2, NRC Docket Nos. 50-445A and 50-446A

Dear Mr. Shapar:

You have requested our further advice purs.uant to Section 105c of the Atomic Energy Act of 1954, as amended, with regard to the participation by the Brazos Electric Power Cooperative, Inc. (Brazos) in the Comanche Peak Steam Electric Station, Units 1 and 2, NRC Docket Nos.

50-445A and 50-446A.

The Comanche Peak Steam Electric Station will consist of two units, each rated at 1150 megawatts.

The station is being built and will be operated by Texas Utilities Generat-ing Company (TUGCO), a subsidiary of Texas Utilities Company (TU). 1/

By the terms of the agreement between TUGCO and Brazos7 Brazos will secure a 3.8 percent ownership interest, or 44 MW in each unit.

Brazos is a generation and transmis-sion cooperative providing power to a number of member distribution cooperatives in central Texas.

By letter to you dated August 1, 1978, the Department advised the Nuclear Regulatory Commission (NRC) that an antitrust hearing would be necessary in reference to the 1/

The designation "TU" comprises the Texas Utilities Company and its various operating and service subsidiary companies including Dallas Power and Light Company, Texas Electric Service Company, and Texas Power and Light Company, each of of which is a joint owner of the Texas Utilities Generating Company (TUGCO).

1147 156

?003 DRI M

~

sperating lic:nce application of TOGCO.

That antitrust hearing, currently in the final stages of discovery, is scneduled to cegin in February of 1980.

The basis for the Department's recommendation that an antitrust hearing be conducted on the Comanche Peak operating license was that TU had combined with other utilities in Texas and agreed to disconnect from any other electric utility that com-menced operation in interstate commerce.

In light of TU's dominant position in Texas, the fact that it had discon-nected from cener electric c:ilitics in 19 76 wh::. C..cse utilities went into interstate conmerce, and in view of changed circumstances in the electric ut.ility markets in forth in my letter to you dated February 21, Texas, as set 1978, regarding the South Texas Project, NRC Docket Nos.

50-498A and 50-499A, the Department concluded that an antitrust hearing was necessary.

The contractual agreements between Brazos and the TU subsidiaries, including the Comanche Peak Ownership Agree-ment and Transmission Agreement, contain restrictions which, in effect, foreclose Brazos from interconnecting with and engaging in the buying and selling of power or energy with electric utilities that operate in interstate commerce.

It is TU's " intrastate only" policy and practice which is the subject of the present Comanche Peak antitrust hearing.

Resolution of the antitrust issues in that hearing will necessarily resolve any antitrust questions raised by these restrictions in the contractual agreements between Brazos and TU subsidiaries.

Brazos has agreed to be bound by the outcome of the present Comanche Peak antitrust hearing, including the resolution of the intrastate only restrictions in its con-tracts with TU subsidicries (See attached letter).

In light of this agreement, and the absence of other evidence that Brazos' participation in the Comanche Peak units would create or maintain a situtation inconsistent with the antitrust laws, the Department believes that an anti-trust hearing on this application is not necessary.

nyerely

urs,

_o r, o -

IJo Shenefield Assi9:hn H.

ant Attorney General Antitrust Division Enclosure 1147 157

f g.f N//hj.ay u

~

r:::r

,. p c r,..._. :t. (/ Q

-a.

The Brar System Brazos Electric Power Cooperative,incorporateci Geptember 14, 1979 M.

unbare Fabrikant. Esquire Assistant Chief, Energy Section United States Depar'c=ent of Justice P. O. Box 14141 Washington, D. C.

20044 Re:

Comanche Peak Electric Station; N.R.C Docket Nos.

50-445A and 50-446A; your file nc. DAY.:FHP 60-57-0

Dear Mr. Fchrikant:

This letter is in response to the letter of Mr. Fred Parmenter to me dated September 10, 1979, concerning the anti-truct review of the above license applications by the Department of Justice and is furnished to you for the Department's use in rendering its anti-trust advice to the Nuclear Regulatory Commission for the applications in the above dockets.

The Brazos Electric Power Cooperative, Inc.,

(Brazos) is a signa-tory to contracts with subsidiaries of the Texas Utilities company that contain language which the Justice Department has construed as preventing or limiting Brazos from operating in, or interconnecting with other elec-tric utilities that are operating in interstate commerce.

In order to avoid the necessity of an anti-trust hearing on Brazos' participation in the Comanche Peak Steam Electric Station, NRC Docket No. 50-445A and 50-446A, Brazos makes the following representations:

1)

While Brazos is a party to contracts that contain intrastate only provisions, Brazos did not request that such provisiens be included in the contracts and would not object to such provisiens being deleted from the contracts or enjoined, should such deletion be ordered or-an injunction be issued in an adminis-trative er judicial proceeding or be agreed to by the other signatories to the contracts.

2)

Brazos agrees to be bound by the cutcome of the present operating license anti-trust proceeding involving the 1147 158 PCST C871CE ECX 6".25 W ACO. TEXAS 75706 PHONE (317) 752-2501 / GENERAL omCE: 2:04 La5ALLE AVENUE

f. ERAZOS EvsTE'.* */E.'SERS:-..

.s..

s i:..

.-.i..o

..r.r...:r-

..,.....,.,., v. : s...

.s.. r :. -

..rs-

.r

.....r.rc.....a.--

.~....n

..*.-.e

-6 z. v.

t. n.. <, :... -..

.t

.. s.....r.

.rs-s

..... :..s..

i.... s ac 3 4. ve ;. _ s.. c.. - -

s :s..

....... :.w. :.,.. t... c.,... -

.o.

r..,;:.m c,c e n. :

e n....:.:. :ca: -

- c.... s:..-

. t,.,. r

.u..

p r......

...c,.........

c.n.:....a..

p, ).

'\\,.'Y.iT W

~.e..

m}. ),

c, N

The Brazos System N

\\

\\

Brazos Electric Power Cooperative, incorporated Mr. Robert Fabrikant Page Two September 14, 1979 Comanche Peak Steam Electric Station, including any conditions that are attached to the operating license as a result of that proceeding.

If you find that you need further information concerning this matter, please let me know.

Yours very truly, I

2, n

James E. Monahan Executive Vice-President and General Manager JEM:vwc 1147 159 3'OST CFFICE EOX 6 $6 WACO. TEXAS 76706 PHONE iB;7) 75*.2501

/ GENERAL CFFICE. 24c4 LaSALLE AVENUE j

E A AICS SYSTE!.* !.iE!.:BEAS:

• .'.t sc 5.: re.

..:.v.e-*.:. e' f.: *

.,,......., n..... s ; '.. : 2. *

...,.,,......,....,re....,

1.

...c

. : t u,.. e. - :.. c. t.. 4 :

,e.

,,,, ;. r... i a.

.v.-

.......e...--

.6 c.. s -

s

..... 6...i.....:..,...

..a.

.t,s.. e.....;..

a,

.... - - ;.u....

.,t.-.

.st - 4...

..,. c. : -

s.

.. v.., :... : s.. g...

. :.. r.. i..... t :s.. o. r e.

..........s : :.. s c.........

.w a.c.

...v.....

.;...., e.s: n,: :.;.... s: :t :...

...........u..

as..

I