ML19273B260

Notes That Oklahoma Corp Commission Has Directed That Util Expense for Plant Be Borne by Stockholders.Util Has No Authority for Predicting 15% Rate of Return on Equity

ML19273B260
Person / Time
Site:	Black Fox
Issue date:	02/26/1979
From:	Baker H, Dawson B, Eagleton N OKLAHOMA, STATE OF
To:	Wolf S Atomic Safety and Licensing Board Panel
References
NUDOCS 7904060038
Download: ML19273B260 (2)

Text

, Pa G 3 KER BILL DAWSON NCAMA EAGLETON ED OVEAHOLSER Comm ssioner Commissioner Cdmmissioner Secretary NRC PUP.Lic DOC TMENT RQ&,ma egag, & cut,.Iy 5b Abd,,S7 OKLAHOM A Corporation Commission JtM THORPE OFFICE BUILDING OKLAHOMA CITY, OKLAHOMA 73105 "

February 26, 1979 eti1 9  %

Mr. Sheldon Wolf, Chairman 4N,$N7 ~

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Atomic Licensing and Safety Board

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,I City of Tulsa Federal Building 4,*M Denver at Fourth Tulsa, Oklahoma 74103 4

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Dear Sir:

We have been urged by certain citizen groups to actively particioate in the hearings before the Nuclear Regulatory Commission on the pro-posed construction of Public Service Company of Oklahoma (PS0) Black Fox Generating Plant. We have declined to do so in view of Oklahoma Gas & Electric Company vs Corporation Commission of Oklahoma, 543 Pacific 2nd 546. In that case the Oklahoma Supreme Court declared -

that "The Constitution simply does not confer upon the Corporation Commission, either expressly or by necessary implication, the oower to regulate, supervise and control the internal management and control of a public utility to the extent that it may prohibit the construc-tion of the proposed project by OG&E."

No legislation has been passed which would so empower us and so we take the cited opinion as controlling.

However, we thought it might be useful to you to know that, to date, the Oklahoma Corporation Commission has not allowed Public Service Company to charge the money expended on Black Fox to operating ex-penses for rate-making aurposes. By order of our Commission those expenditures are being aorne by the stockholders of PSO.

And while it has been reported to us that the expenses to PSO for Black Fox are in an account to be capitalized if and when the plant is completed and in service, this Commission interprets its rate-making authority to require disallowance of any amounts represented 790406 0 0 % , pp1 By/

, J. Ao,, & :oo -