ML19211D350

Response to Houston Lighting & Power Co 800103 Request for Conference Call.Does Not Object to Conference Call,But Does Object to Util Allegations in Support of Request.Exhibits & Certificate of Svc Encl

ML19211D350
Person / Time
Site:	South Texas, Comanche Peak
Issue date:	01/04/1980
From:	Cyphert S, Luque N JUSTICE, DEPT. OF, ATTORNEY GENERAL, OFFICE OF
To:	Atomic Safety and Licensing Board Panel
References
NUDOCS 8001180009
Download: ML19211D350 (10)

Text

UNITED STATES OF AMERICA NUCLEAR REGULATORY COMMISSION Before the Atomic Safety and Licensing Board In the Matter of

)

HOUSTON LIGHTING AND POWER

)

COMPANY, et al. (South Texas)

Docket Nos. 50-498A Project, Unit Nos. 1 and 2) )

50-499A

)

TEXAS UTILITIES GENERATING

)

COMPANY, et al. (Comanche

)

Docket Nos. 50-445A Peak Steam Electric Station,)

50-446A Unit Nos. 1 and 2)

)

DEPARTMENT OF JUSTICE'S RESPONSE TO HOUSTON LIGHTING &

POWER COMPANY JANUARY 3, 1980 REQUEST FOR CONFERENCE CALL The Department of Justice

(" Department") has no objection to Houston Lighting & Power Company's ("HL&P") request for a conference call to discuss any issue in these proceedings.

The Department, however, strongly objects to HL&P's unfounded allegations to support this request. 1/

First, HL&P now claims it has been denied the " basic antitrust contentions" and " specific nature of its (the Department's) theory of violation of or inconsistency with the antitrust laws".

The Department's specific antitrust claims were revealed to HL&P almost three years ago in the Department's January 25, 1977, advice letter. 2/

1/ All the Department's pleadings on this issue were appropriately filed.

Its December 14, 1979 Motion was filed pursuant to S2.740(b) and its December 26, 1979 Rcsponse was filed pursuant to a telephone call from Chairman Miller's secretary to Susan Cyphert on December 21, 1979.

2/ Exhibit A 1765 194 8 00118 0 C)C)C,

. Second, the Department has repeatedly stated it is working on and will provide HL&P with a supplemental response to HL&P's First Set of Interrogatories by February 1, 1980.

Much of this response will deal with the Department's economic analysis of this proceeding to date. 1/

The Department is not aware of any requirement that tne Department present economic testimony to the Licensing Board.

The Department has, however, engaged Dr. Gordon T. C. Taylor to analyze the markets in this case and review discovery so that he may be able to testily about the effect on competition in the markets he determines to be relevant.

HL&P's argument that Dr. Taylor must now commit h ims elt to conclusions about these matters is analogous to a critic being asked to review a film after only seeing a preview.

The Department anticipates that Dr. Taylor will have the substantial portion of his analysis and review of the evidence completed by the time he is aeposed again in March.

HL&P has had discovery of the work he completed as of the date of his deposition in October.

To the extent that he has completed any additional work which is responsive to HL&P's First Set of' Interrogatories, the Department will reveal this in our updated response on February 1, 1980.

1/ Th is work, however, has been increasingly hampered by the need to respond to HL&P's motions.The modest extension requested by the Department is reasonable in view of the ongoing depos ition schedule (Exhibit B) and should be granted.

1765 195 Finally, the Department is amazed by liL&P's claim that it has somehow been cenied discovery which would prejudice it at trial.

liL&P has had the same opportunity to conduct discovery in this case as have all the other parties, however it it believes it will need additional time to conduct discovery atter the eno ot February it snould so move the Board. 1/

The Department urges the Board to deny liL&P's tiovember 30, 1979 110 tion regarding its First het ot Interrogatories and grant the short extension of time requested by the Department to provice supplemental responses to llL&P's First Set of Interrogatories and to answer ilL&P's Thi.rd Set of Inter rogator ies.

Respectfully submitted,

&;Z41 ht?h?l ','/fN usan Braden Cypner't

'91aaw apx--.

IJancy Luque jg bashington, D.

C.

Attorneys January 4, l'>80 Energy bection U.5.

Department of Justice (202-724-6667) 1/ llL&P states in its Response to the Department's Request for an Lxtension of Time to February 1, 1980 to Answer liL&P's Third 60t of Interrogatories, t iled on December 18, 1979 and due on January 2, 1980, that thi.s will be too late "to permit 11ouston to ettectively conduct tur ther d iscovery...".

1765 196

UNITED STATES OF AMERICA NUCLEAR REGULATORY COMMISSION Before the Atomic Safety and Licensing Board In the Matter of

)

HOUSTON LIGilTING AND POWER )

Docket Nos. 50-498A CO., et al.(South Texas

)

50-499A Project, Units 1 and 2)

)

)

TEXAS UTILITIES GENERATING

)

Docket Nos. 50-445A COMPANY (Comanche Peak

)

50-446A Steam Electric Station,

)

Units 1 and 2)

)

CERTIFICATE OF SERVICE I hereby certify that service of the foregoing Department of Justice Response to llouston Lighting & Power Company January 3, 1980 Request for Conference Call has been made on the following parties listed hereto this 4th day of January 1980, by depositing copies thereof in the United States mail, first class, postage prepaid.

~~

Marshall E.

Miller, Esquire Alan S.

Rosenthal, Esquire Chairman Chairman Atomic Safety & Licensing Board Michael C.

Farrar, Esquire Panel Richard S. Salzman, Esquire U.S. Nuclear Regulatory Atomic Safety and Licensing Commission Appeal Board Panel Washington, D.

C.

20555 U.S. Nuclear Regulatory Commission Michael L.

Glaser, Esquire Washington, D.

C.

20555 1150 17th Street, N.W.

Washington, D.

C.

20036 Jerome E.

Sharfman, Esquire U.S.

Nuclear Regulatory Sheldon J.

holfe, Esquire Commincion Atomic Safety & Licensing Board Washington, D.

C.

20555 Panel U.S.

Nuclear Regulatory Chase R.

Stephens, Secretary Commission Docketing and Service Branch Washington, D.

C.

20555 U.S. Nuclear Regulatory Commission Samuel J.

Chilk, Secretary Washington, D.

C.

20555 Office of the Secretary of the Commission Jerome Saltzman U.S. Nuclear Regulatory Chief, Antitrust and Commission Indemnity Group Washington, D.

C.

20555 U.S. Nuclear Regulatory Commission Washington, D.

C.

20555 1765 197

Mr. William C. Price Roy P.

Lessy, Esquire Central Power & Ligh t Co.

Michael Blume, Esquire P. O.

Box 2121 U.S. Nuclear Regulatory Corpus Christi, Texas 78403 Commission Washington, D.

C.

20555 G.

K.

Spruce, General Manager City Public Service Board Jerry L.

Ilarris, Esquire P.O.

Box 1771 City Attorney, San Antonio, Texas 78203 Richard C.

Balough, Esquire Assistant City Attorney Perry G.

Brittain City of Austin President P.O. Box 1088 Texas Utliities Generating Austin, Texas 78767 Company 2001 aryan Tcwcr Robert C.

McDiarmid, Esquire Dallas, Texas 75201 Robert A.

Jablon, Esquire Spiegel and McDiarmid R.L.

Hancock, Director 2000 Virginia Avenue, N.W.

City of Austin Electric Washington, D.

C.

20036 Utility Department P. O.

Box 1088 Dan 11. Davidson Austin, Texas 78767 City Manager City of Austin G.

W.

Oprea, Jr.

P. O. Box 1088 Executive Vice President Austin, Texas 78767 Ilouston Lighting & Power Company Don R.

Butler, Esquire P. O.

Box 1700 1225 Southwest Tower llouston, Texas 77001 Austin, Texas 78701 Jon C.

Wood, Esquire Joseph Irion Worsham, Esquire W.

Roger Wilson, Esquire Merlyn D.

Sampels, Esquire Matthews, Nowlin, Macfarlane Spencer C.

Relyea, Esquire

& Barrett Worsham, Forsythe & Sampels 1500 Alamo National Building 2001 Bryan Tower, Suite 2500 San Antonio, Texas 78205 Dallas, Texas 75201 David M.

Stahl, Esquire Joseph Knotts, Esquire Iscem, Li.icoln & Beale Nicholas S.

Reynolds, Esquire Suite 701 Debevoise & Liberman 1050 17th Street, N.W.

1200 17th Street, N.W.

Washington, D.

C.

20036 Washington, D.

C.

20036 Michael I.

Miller, Esquire Douglas F. John, Esquire James A.

Carney, Esquire Akin, Gump, Hauer & Feld Sarah N.

Welling, Esquire 1333 New flampshire Avenue, N.W.

Isham, Lincoln & Beale suite 400 4200 One First National Plaza Washington, D.

C.

20036 Chicago, Illinois 60603

~

1765 198

Morgan llunter, Esquire Robert Lowenstein, Erguire McGinnis, Lochridge & Kilgore J. A.

Bouknight, Esquire 5th Floor, Texas State Bank William J.

Franklin, Esquire Building Lowenstein, Newman, Reis, 900 Congress Avenue Axelrad & Toll Austin, Texar, 78701 1025 Connecticut Avenue, N.W.

Washington, D.

C.

20036 Jay M. Galt, Esquire Looney, Nichols, Johnson E.

W.

Barnett, Esquire

& liayes Charles G. Thrash, Jr., Esquire 219 Couch Drive J. Gregory Copeland, Esquire Oklahoma City, Oklahoma 73101 Theodore F.

Weiss, Jr., Esquire Baker & Botta Knoland J.

Plucknett 3000 One Shell Plaza Executive Director llouston, Texas 77002 Committee on Power for the Southwest, Inc.

Kevin B.

Pratt, Esquire 5541 East Skelly Drive Assistant Attorney General Tulsa, Oklahoma 74135 P.O.

Box 12548 Capital Station John W.

Davidson, Esquire Austin, Texas 78711 Sawtelle, Goode, Davidson

& Tioilo Frederick II. Ritts, Esquire 1100 San Antonio Savings Law Offices of Northcutt Ely Building Watergate 600 Building San Antonio, Texas 78205 Washington, D.C.

20037 W.

S.

Robson Donald ti. Clements, Esq.

General Manager Gulf States Utilities Company South Texas Electric P.O.

Box 2951 Cooperative, Inc.

Beaumont, Texas 77704 Route 6, Building 102 Victoria Regional Airport Mr. G.

Ilolman King Victoria, Texas 77901 West Texas Utilities Co.

P. O.

Box 841 Robert M.

Rader, Esquire Abilene, Texas 79604 Conner, Moore & Corber 1747 Pennsylvania Ave., N.W.

W.

N.

Woolsey, Esquire Washington, D.C.

20006 Kleberg, Dyer, Redford & Weil 1030 Petro'.eum Tower R. Gordon Gooch, Esquire Corpus Christi, Texas 78474 John P.

Mathis, Esquire Baker & Botts

' N d/A M[NC/

1701 Pennsylvania Avenue, N.W.

Washington, D.

C.

20006 Susan B.

Cypher, Attorney Energy Section Antitrust Division Depa r trae nt of Justice O

1765 199 i

W nl....,t<.o. U C. U...o s

EXHIBIT A i

i Ji\\N *> 1371

.hapar, l.'cutce d.:otaru 4

i;..f e u t : s e 1.e.J o ; Dir ector li. h.

.ui..

eu..l u a t a t v Cen t:. :,,. i o n l

ti...

i.

't.in, D.

C.

20';4S l

i he.

h 0 'J E l e G I.. '!h t i nil and power CCiWany,

\\

!;0uth T(xor '>ra';cet, Untts 1 and 2 lil(C Dec k ',' t B. 0 :

'; 0 - ti ( 'i.\\

and 9 0 - ; !* 9 A J.,r

*.*. Jhapur:

ThiC t'

.C re f t r e.TCO to your letter of Atta ur.t 3,

1976

n which

.u requtut.alv i ce au to whether there are en.

c.,.. c i l i n ! c t. c o:. n t, n e e. N e c,e n t ed by certain allcga'.ione

..u t.y Cer.t r ol F m.z r and hight C om n,my (CPnL) which warrant an.atttrur revia, p ior to the filing o f.

an opp 3tcation for en oisetaLiag 1icence or the bouth Tc:.u. Project.

The 11epartuent hac greviously cule.itted an t. i t r u n t ad v i c e to four Cr.ptEcion t eg a r d i r.g c!%1ications for t.he South Texas Projer.t ana two other nuclear :.uwer plantL ulanned :or Texar,

t. j i e n ' c r. r e e.. ::ue..'ar G e n e r a t :.;g s t a t i c r.,

L' n i t c 1 and 2,

Wir Duiket ::o:

50-466A

.n.' ' C - 4 (, i l., and Cc:: anche Peak St.ean

l ec t r i...;tation, l'nttu 1 eno 2,

DC Docket. Nos. 50-445A end 50-44CA.

We oetermined tnat the opportunity for ownerchio p.:r t i e t pa t i on in the nucli.cr units..' e n ue i ng r.'a c'c availdole t

i t.t e r e s t ed r~a!!c; electric ut il i t ie c in the area and

t. hat r e -ber ch ip in the Texas Intercennectcd Sy; tem (TIS), the r.teo ium thr t. ugh un i ch utilities in Texas engaged in coordina-tion with one another to obtain economic ar.d reliaDolity b e n e ' i t. :., would likewine not be rectr icted -- and we did not ind it necennary to r eco:'uae nd an t i t r u c t hearings on any of these a;plicat. tons.

A nigniCicant change in the operations of c1ce'.r ic ut il i-tica in Texan has occurred, however, since the Department lact rendetrd antitruct advice concerning the South Texas Project.

Pricr to ::ay, 1976, most of the Texas cycteins interconnected anJ coordinated with one a..other to thetr catisfaction in TIS,

,ta Q

O wf n

_i, n,f-gQ 1765 200 I.

.....,.... +........

3.,,...,.

t

( >f, i

4 c

• m

.h.'

sa, ex e 1 ou i v.1,

.at i n t t a c t.a l e c.yctct;; none of these I

ut i1 t t.

or.o r a t e<.

tntetcont. etvi with an electric utt1 tty y

o u t r. ; a.

Y-an ro

.e to 1.e tuhi; e L to the j u r i tiiet it n tf the Pe 0: al

.e.

t o.- ::

.n

(;'vJ), and tntetconnectton con ract vith c:n-no. :te t

i-e nil t i t o r.( J.pecifically to pr e c l uce inter:,tet. e t,:.nec t t a r

n t ne abst r.ce of cos::p l a in t s I r c :...

any con:

., i:. nara t L..en t hao expren :ed no vicu a:.

to the l e.j a l t. ' a: gi c.p r t ': y af thin policy.

Then, in itay, l 'J 7 6,

!wo,t.:.<ipui

...e r n e., cf Y10, CP6L and

'.c.,

t

.'ex e n Uti1itios

(.n,,,

i. :.. e : n - a t-i.ou r. i t.o in t r.t er c ta te c o..i.:e t ee.

dL6?

o.o.

t!,

.4 4., e '. i l a t i e. ( 'l l! ) sy c t e:.0,

.:e t t : 'r o u r s u a n t.

to tne t: o: t a u.

a' con..i

• un noteo anove, t ;.m. e 4.. t ' e l ' OD nei

t. heir

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.' t t s.t&. a1 Jie;..:ef Et3aO itih CPsL, 'YU and c.lhet

'I e... S i y O t elr a h. 1.

.- cot.n. c t -

with CW.I, ar.d..T U.

UL1le reconncetten fu: t :

. : e n e,.

• J

, ' o t. c ;, *it L hau; l' N ju;.; dietion at t och a tul

(

ho

'sc..

. ;t.,GI 6:

a */

t. b '

t' h ', thC t i e.

.. a '/ e tePainel Glen L

.- : Ylb ne c no..

b.; t o It pl aced

..y two n!Lua'lj e >., 1. n..

. y. t mn.

Ceritt<.] Po ce.

. Lioh' han alles;ed that thin situe. ion

....... t e : i t a l '. ',

i r ;' a t r :

a'-.

abiltLy to r, t e a u c e co:ru:e t I t i v c1 y ano a l.: n the. itu participation in the Joutn ja: acs. y l e s. c _ Picjvet w.li be J o oi. o r d i i. e ti.

l'ou t on Lienttnj cnd P o.a. :, ea the ather hand, contenus thal it ce L e.i uni 1 Let-e l l ',, w. t i:O u t an t. i eolu:e t i t t ve pu r po..e, to nrererve ;ts nLata;.

a; un intractate ut ili ti not GUbject to E.T ]uricdiction, th.t iLL action.'ill have no anticonpetttive eftoct, and that Ch L ':

cat t ic tpu t t on in t.h e South Texa: l'tuject will not Le a. ct r tvi) a!fceted.

We f.e e c not decide the u l t i r.ia t e validity of CP&L's contentionL ot H L. i2 's runponce to conclude that the oresent s t L u..t i o:. in "Je.a:

-- utth re.:tttetionn on interutility c o u t.. i r. u t s e r.

t e r : l t. i nt,'

f r a:n the division of

t. he u t il t t i e:S in ti.e Ltute inse two groo.bs, prcr.10ed on in t r actate end Jntrt.....te ou r: r t ton reg jetively, with T!

o l im i n c t +.J coo r d i r.a t i ng vehic1;, end u t th cues t ion; tained on to t.h e a

v1aba1.tf of plar.neu portletration in the nuclear units --

wa r t s:.t r an ' ar.t i t r u c t hearing.

Th.i c situation and tne tnter-t e l a, ; o n d. i p o f 1:1 ', P a nd

".'U in it r.:oy also t eou i re r ee x a:a ina-t i t.n 01 1teenne clica: ton for the Co:.:anche Peak and Isllent o

C t e e r.

a e l i. a r plantn,

..l t.'. o u g n w e u r.d e r c t a nd no cuertione

i. ave. t. t ;.e e n c a. c c c; with yout Cc:r m i s c ic n reoarding t r. x e applicat!uns.

In connecticn with the Eouth "lexas Project, hovever, tne Utpartaent note. that, on September 9, l 'r! 6, an Ist on t e Sa f e ty anc Licencir.o.icaid g r a n t.c c' C l L L ' S polition to i t. t e t". e n s. anti fct an ar. t t t c u n t hearing.

2 o gY go is (1765 201 7

, g.

4/*

A hearing to d;tetnine the antittuut consegu,nceu of thin

/

r i t. u a t. i on i. o u ld a o.tupriately explore t he txtent to whtch coor d inat ing epiontenitier OL amaller elietrte cyst ca in the area, i nc l uu t n' Partietpation in nuclear generation, may be f o r ecloseti.

Of concern in this regard c.hould be not only the con t i n u eJ:. iabilit y er the South Texas Project as a joint venture, but al so the feasioility of (and limitattona on) smaller afstem partteipat. ion in future nuclear t situ princi-pally lo ao ad by i!L6 P a nti the TV systems.

The aituation's impact on other nlanned cr 'r:occ ible jotut arrangener.tc would be t e '. e v o n t.

oa well.

For exeunle, i t.

appea r s br azoc. Electric Power Cooper ative wy be foreclosed f ror. Sc intly const r ucting

\\.

a planned major lianite-fueled cenerating f ac il i ty w i t.h two

,\\

otner Te: as e!cet r ic cooperativen (whc ate now operating interstate ac a recult of their interconnections with CP&L) if Brazc; wianes to continue to obtain the bene f i ts of its coo r d i r.a t ion w i t n TU.

Other issues would include to what degrce char.ges in the ava tlebility and pc ice of na t u r al gas for boiler fuel nave increased the impcrtance of nuclear g e r.c i a t i e n and coordination to the smaller Texas s y s t e:as and, u l t i n.a t e,., the erfeet of the present r-ituotion on their power su,> ply costa and the it a b il i ty to coupeLe.

The Department can see no reason.hy the hearir.9 should not proceed at this t t re e, rather than awa i t i ng the filing of t h '. application for an operating license.

The subt.t an t ive insuca cycat ripe f o: determination und the possibility of liccusi:.'. del-f later on would i:e m in i n i z eci.

Finally, resola-tion of there issues now could permit the effectcd utilities to c.ove f o i.. a r u with the planning and development of their power rc.nply r y.. t e:nc vita greater certainty reoarding the g e n <. a t. t c n and cootdinotion options that will be available to them -- a r.t o n t den i t able teculL, 9iven the prevailing l e nrJ lead t t ::.c s required to develop new facilities and bring them into service.

Sincqrelyyc.fs, 7

DONsLD 1.

DAKER Assistalt Attorney General Antitrust Division 9

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1765 202

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L' ACTIVITY SCHEDUI.E JANUARY 1980 SUN.

MONDAY TUESDAY WEDNESDAY THURSDAY FRIDAY SAT.

T.R. Lccke NOTES:

DECEMEER 1977 l

NEW

-~

- -[Wichit_a Falls 3_

susuos rue wro rsu rai s4r 1

YEAR'S

O am 2 3 4 5 6 7 8 D AY -

9 10 11 12 13 14 15 HO O D'A?__

~

~~

~

~

16 17 18 19 20 21 22 N % @ 26 27 28 29 1

2 3

4 5

5)J.E. FarrinM o_nL3g 1

1) Edward Watson 7_MilfordfSaycoun)

O _1)_PhelpsEcity

._g13acrcheltEconpus }

. Christi](2)0 scar

._am[ Dallas]

D-ac[Dstlas3.

9:30_anfWich_ita_ _Qof_Vernon]9 :30_ar t-

_Ealls]

_[Mi-hita Eallsl Castillon 9 am[Dal-(2) Marsh-Electra l_a s](3) Robe r t Corder 9:30 am[ Wichita

_2)Ph i LLips[ Dallas 3_ _1:30 pmEDallas]

Falls]

_(postponed)_

(4) Paul Helyer[Wi---

_(3)--Autry})

chita Falls] 9:30am (4) Chalke.

6 7

8 9

• CorDuS Chriu til 11 12 1U

'l 4 I D 9amlHoustonJ l 01:30 pm[ Houston]..

3 f_ Thomas Standish 1 Q Swea.tman_& Wood q O ______

'1 A l ".1)R^bert_Eachart 1/ Jack,G_reenwade i

O I /9 am[ Houston]

Iuson in Austin 18_/

(2) Harrison [ San An-Segrest[Waco]

tonioJ9:30 am

_,l._MonahanEW'acai _ _

lexas3_2.:30 n, 13 14 15 16 17 18 19

_1)Doug Wright __ g"g 1 ) J.W. Atk ina (?) _j.

_11J..Bondurant__

__A._S oca w L c 9 n-1_ Lea 02

}__

.eaumontl

1. ){ Beaumont]

]g g}_9:30_ap[ Tulsa].

1 :30pm [Beaumon_t_J_ __ (21 Steve. Beard _9__an t__

9..am C2) A.M.sni_th. M_ acC9eaumont3__..

~___

1.

(2)0crea[ Houston]

(3) Frank Meyer[ Tulsa [ Dallas](3) Henry ___.

M.aaoing_2Jon l to--b e-s che dule d-i n - D a ll a s--thi s-we ek) 20 21 22 23 24 25 26 mur Jordan [ Houston]

__MCCuistion 30 31[Houstoc3 p___ _

9_acGdcuston]__

5_u_N mon iuE WED THU F Ri Saf (2) _Tr i: Count yEE.t.___

1 2 Wo cth3 _1:30_ pm----

3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 h19 20 2122 23 27 28 29 so si 24 25 26 27 28 29 JANUARY 1980

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