ML19253B146

Notifies That City of Cleveland Supports DOJ Request for NRC to Institute Proceedings to Impose Civil Penalty on Cleveland Electric Illuminating Co for Violating Antitrust License Condition 3

ML19253B146
Person / Time
Site:	Davis Besse, Perry
Issue date:	09/12/1979
From:	Goldberg R GOLDBERG, FIELDMAN & LETHAM, P.C.
To:	Harold Denton Office of Nuclear Reactor Regulation
References
NUDOCS 7909180328
Download: ML19253B146 (2)

Text

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e Law ormcae GOLD B ERG, FIELDMAN & LETH AM, P. C.

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• e W 3 *0 N DaviO C. MJ ELM FELT c-i ~ - ~ o o .T =o T- E =. s a* September 12, 1979 roa7 coLu== co'ca^oo

. . . .. a .u, Mr. Harold Denton, Director Office of Nuclear Reactor Regulation Nuclear Regulatory Commission 1717 H Street, N.W.

Washington, D.C. 20555

Dear Mr. Denton:

By letter dated August 10, 1979, received by this office on August 31, 1979, the Department of Justice re-quested the Nuclear Regulatory Commission to institute pro-ceedings to impose a civil penalty on The Cleveland Electric Illuminating Company ("CEI") for violating Antitrust License Condition No. 3, relating to wheeling services, attached to the operating license for Davis-Besse Nuclear Power Station Unit 1 and the construction permits issued for Perry Plant Units 1 and 2 (NRC Dockets No. 50-346A, 50-500A, 50-501A and NRC Dockets No. 50-440A and 50-441A).

The City of Cleveland, Ohio, supports the request of the Department of Justice.

The City of Cleveland agrees with the Department that CEI has willfully refused to comply with Antitrust License Condition No. 3. As was observed in the Order of June 25, 1979, of the Nuclear Regulatory Commission relating to CEI's violations of the wheeling license condition--

"CEI has approached its responsibility to file a wheeling schedule for the City as if it had not been required as a condition of its operating license and two construction permits to comply with Antitrust License Condition No. 3."

CEI's conduct in this regard was not inadvertent.

It was knowing and deliberate, designed to thwart the license condition while hoping that its appeal of the Licensing Board's decision would rescue CEI from compliance. with the license condition which the Licensing and Appeal Board had refused to f stay pendents lite. A witness for the Staff of the Federal (g, g

Energy Regulatory Commission, in that commission's hearing v(

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W OFmCES GOLDBERG, FIELDMAN & LETH AM, P. C.

Mr. Harold Denton September 12, 1979 Page Two on the transmission tariff filed by CEI in purported com-pliance with the license condition, put it succinctly (FERC Docket No. ER78-194, Transcript 431):

"My reading of the tariff is that it is a short-term stop-gap filing by CEI that makes no provieron for the future except to abruptly ter-minate service if any legal means of doing so should materi.alize."

Respectfull/ submitted, Y t'htt/

A f Reuben Goldberg, y Attorns'] for The City of Cleveland, Ohio RG/jat cc: Service list excluding members of the NRC Safety and Licensing Appeal Board.

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