ML19274E389
| ML19274E389 | |
| Person / Time | |
|---|---|
| Issue date: | 02/23/1979 |
| From: | Evans D, Goldberg J, Volger B NRC OFFICE OF THE EXECUTIVE LEGAL DIRECTOR (OELD) |
| To: | |
| Shared Package | |
| ML19274E388 | List: |
| References | |
| PROJECT-564M NUDOCS 7903230293 | |
| Download: ML19274E389 (28) | |
Text
4 i
UNITED STATES OF AMERICA NUCLEAR REGULATORY COMM';SICN BEFORE T!:E ATCMIC SAFETY AND LICENSING BOARD In the Matter of
)
)
PACIFIC GAS AND ELECTRIC
)
NRC Docket No. P-564A COMPANY
)
(Stanislaus Nuclear Project,
)
Unit No.1)
)
NRC STAFF'S PRELIMINARY COMMENTS CONCERNING THE PG&E COMMITMENTS INTRODUCTION During the Prehearing Conference in San Francisco on January 23-25, 1979, the Licensing Board requested the Intervenors and Staff to orally 1/
2/
address the inadequacy of the PG&E Commitments to remedy the situa-tion which has been alleged to be inconsistent with the antitrust laws or the policies underlying the antitrust laws. The Board further requested that written comments by Intervenors and Staff be submitted on February 12, 1979, -3/and that a reply be submitted by PG&E on February 26, 1979.
The Staff hereby submits its preliminary comments.
l/ Tr. at 1693 (" inadequacy of the commitments"); 1694 ("a summary of what is inadequate about these commitments and how you would like those changed"); 1697 (" discussion of the inadequacy as the parties see it on the one hand of the commitments and as much specificity as possible"); 1702 (" description of the additions to the ccmmitments, additional commitments, refinements of commitments... the adequacy or insufficiencies of the commitments").
2/ The "PG&E Commitments" are Pacific Gas and Electric Company's State-ment of Commitments attached to the April 30, 1976, letter from John F. Bonner to Thomas E. Kauper. Both the Statement of Commitments and the April 30th letter were attached to the Attorney General's May 5, 1976, advice letter to the NRC. The Statement of Commitments were attached as conditions to PG&E's Diablo Canyon Nuclear Plant (Units 1 and 2) construction permits effective December 6,1978.
_3/ By letter dated February 8,1979, Mr. Davidson, Counsel for NCPA, notified all parties of an extension of time until March 1,1979, which the Board granted that day to Intervenors and Staff.
790323 to 't3
2 The following cc: rents by the Staff concerning the inadequacy of the PGiE Cc=it ents to remedy the situation alleged to be inconsistent with the antitrust laws or their underlying policies represent the Sta ff's current views. These views may change as a result of our discovery efforts which are underway. Accordingly, these co=ents can only be considered as preliminary in nature and subject to change as more infor ation develops. The Staff may propese as relief during the hearing license conditions which are different in form and/or substance from those suggested herein.
Indeed, nothing herein should be construed to suggest that the license conditiens ultimately proposed by Staff will be simply a codified form of the present PG&E Commitments.
Finally, the Staff would like to emphasize that it is extrecely difficult to appreciate the need to amend the PG&E Cc:mitments in order to remedy a certain anticccpetitive situation until after that situation is fully determined.
In short, evaluating the remedy (license conditions) before the liability (" situation") is of limited value. -al CCM.MENTS Attached to these cc=ents is the "NRC Staff's Preliminary Amendments to the PG1E Cc=itments." -5/
This document originally was entitled "Second Draft of Staff's Proposed Pacific Gas and Electric Ccepany Stanislaus License Conditions" and served as a basis for separate settlement negotiations between the Staff and PG&E, and between the Staff and eacn intervenor, as well as a basis for joint settlement negotiations arcng 2/ See Sta f f's Answer to D'aR's ?cticn for Si furcated Hearinc" c::n-tained in NRC Staff's ? rehearing Conference Brief, January 12, 1979.
_ff Atuchment A.
. all parties. --6/ The document never was, and not now is, intended to be a final or firm Staff position.
Indeed, the Staff recognizes that there may be deficiencies associated with the Preli.nir.ary Amendments themselves.
In fact, the Staff is currently evaluating these Preliminary Amendments in that regard. With these caveats, the Staff is attaching those detailed changes in direct response to the Board's request and to demonstrate an effort by Staff to address the complex issues raised by the PG&E Commi tments.
The comments which follow are intended to highlight some of the changes reflected in Staff's Preliminary Amendments according to the respective number and letter designation of the paragraphs of the PG&E Commitments:
I.
De finitions I.C.
The definition of " Neighboring Entity" excludes CWR and the Cities of Anaheim and Riverside (and other similarly situated electric utilities).
Staff's Preliminary Amendments include CWR because DWR is an electric utility in PG&E's service area competing with PG&E for sources of bulk power supply.
The Staff has no position at this time on the status of " southern cities" such as Anaheim and Riverside vis a vis the PG&E Commitments. Also excluded from this definitien are cogenerators. The Staff has no position at this time on the status of cogenerators vis a vis the definition of " neighboring entity."
_5/ See the letter dated December 7,1977, from Jack R. Goldberg to counsel for all parties, Attachment B hereto. As stated in that letter, the document was' not intended for distribution to others or submission to the Board witn-out Sta ff's approval.
The Staff is submitting it to the Board now sicoly because it so directly responcs to the 3 card's questions and because the Board has stated that these comments will not be binding in any way on the parties. In submitting this document to the Board, the Staff is not dis-closing any party's settlement negotiating position. ?;othing should be construed about any party's ;osition based on this do:urent. CinaIIy, the Staff notified ?G5E by tele; hone on February 9,1979 of its intent to submit this document to the 30ard.
. I.D.
See comments on I.C. above.
I.E.
" Costs" as defined here, is essentially a rate that has received approval from the regulatory authority having jurisdiction over the particular services or transactions. Consecuently, its use is inappropriate in certain other sections that contemplate allocation of costs of facilities that are not pursuant to a filed rate schedule. These sections include II.D., VII.B., VIII.A. and VIII.B.
I.F.
" Good Utility Practice" is defined to be primarily PG&E's practices.
Almost every provision of the Ccmmitments is therefore conditioned on satis f,ying PG&E's practices. Staff's Preliminary Amendments change the definition to protect the reliability and safety of the operation of PG&E and other interconnected systems. Thus legitimate protections are included, while the potential for abuse of PG&E's insistence on compliance with its practices is eliminated.
I.G.
The " sufficient transmission" associated with power to assure its firmness need not have to be capable of moving such power and reserves to the " load center", but only to a point on the system where the pcwer and/or reserves can be utilized.
II.
Interconnection II.A.
See comments on I.F. above.
II.B.
PG&E should not be able to refuse interconnections at more than one point if multiple interconnections are feasible. (A party requesting inter-connections at more than one point must fully compensate PG&E for the multiple points of interconnection pursuant to II.D.).
Also, " power factor" is a function of custcmer icad.
Therefore, recuesting others to maintain the same
. power factor that PG&E happens to maintain in a particular geographical area is unreasonable, if not in fact impossible. The Staff now believes that one way to correct this deficiency of the PG&E Commitments is to simply remove the power factor clause entirely.
II.D.
The Staff has no position at this time on whether or not the costs of additional interconnection facilities should be allocated on the basis of projected economic benefits. This section does not address the allocation of costs of the services or transactions that are made available over interconnections. All of the above costs should be allocated consistent with the standards set forth in Gainesville Utilities, Department v. Florida Power Corcoration, 402 U.S. 515 (1971), so far as applicable. Also, see comments on I.E. above.
II.E.
This provision allows PG&E to limit the use or resale of sold or exchanged capacity and energy if consistent with PG&E's practices, and therefore is unacceptable. The Staff has made changes to prevent the unfair imposition of use or resale restrictions.
II.F.
PG&E should be permitted to terminate interconnection agree-ments only if reliability is impaired, not simply " adversely affected".
II.G.
Underfrequency load shedding programs should be equitably based, at least in part, on the size of the entities and the nature of their loads. The Staff's proposed changes so specify.
. III. Reserve Coordination III.A. As written, this provision requires others to maintain the same reserves as PG&E's olanned reserves, even if not maintained by PG&E. This is inherently unfair. Also, reserves should be expressed as a percentage of annual peak load "less the estimated interruptible load" as Staff's changes make clear.
Finally, other parties should not bear the costs of the cessation of PG&E's anticompetitive conduct or position, if any is proven. Therefore, a clause should be inserted, such as that suggested by Staff, which would prevent PG&E from imposing unfair reserve requirements on others due to the initial implemen-tation of license conditions designed to remedy a situation inconsistent with the antitrust laws.
III.B. See the comments on III.A. above.
In addition, load dropping should be recognized as a substitute for some or all of the spinning reserve requirement.
Finally, all parties should be required to use their best efforts to maintain their minimum spinning reserve level.
III.C.
This provision is inextricably intertwined with many of the current contracts to which PG&E is a party by virtue of the condition that allows PG&E to refuse to sell excess capacity as reserves if such capacity is " contractually committed" to others. The Staff's changes would required that the contractually committed capacity also be
" scheduled to be sold" and thus constitute a more definite and finn arrangement.
III.E. See comment en I.F. above.
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PG&E's service area. No such ri;ht is given to others, however, witn res:ect to PG&E's power. This prevents sales and exchanges areng others and helps perpetuate the retention by PGIE cf captive custerers. Also, there is re requi rerent that PG&E wheel frca industrial cogenerater2. The Staf# has proposed that PGSE be required to do so by its changes. The clause which alicws PG1E to refuse transmission service if the recessary transmission facilities are "concitted" or " reserved", when considered in conjunction with the existing c:ntracts and arrangerents to which PG5E is a party, may effectively be utilited by PGsE o temy vi*tually all trans :issi:n services and is theref:re eliminated. The Staf#'s pre;csed changes adequately protect PGIE. Finally, license conditions should be silent (truly " neutral") with respect to the specified Acts concerning Nortn-west ;cwer rather than allcwing PG1E to refuse transmissicn services based on PG1E's interpretation of those Acts.
VII.S. The costs of additional transmission facilities should be allocated by the appropriate regulatory authority or agreerent by the carties, whichever is a:prcpriate.
In addition, cthers should be allesed to cwn those facilities for which they pay ?G1E for : nstructicn.
VII.C.
The Staff's changes prohibit unreasonatie du:licaticn of facilities with due protecticn to PG1E's system.
VIII.. access fer.' uclear Geaerati n VIII.A. Access shculd be assured fer tne term of tne license ("G years, not 2G) anc for all nuclear units of ahich :GLE is a : -cwr.er.
?artici:ating entities shouic ais; be alicwec :: ;ay f:r and :wn tre
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. VIII.B. The one year limitation on executing a participation agreement is too short.
VIII.C. A new section VIII.C. should be added, as suggested, to provide for reasonable withdrawal from participation by any party.
IX.
Imolementation IX.D.
This provision should be deleted. Whatever rights PG&E has to seek changes to NRC license conditions in other forums will not be enlarged or diminished by silence thereon.
IX.E.
The Federal Power Act presently requires refunds only for unjustified increases in rates or charges (1205(e)). A new section IX.E.
should be added to the Commitments to also require refunds for unjustified initial rates or charges.
Respectfully sub..itted,
[Lcf (c
'b
/ Jack R. Goldberg fy 6' Counsel for '1RC Sta ff
&lJJk, '(V'JJW s
David J. Evans, Counsel for NRC Staff f
heMlG0n n f,1 Q b'L
^
Benjamin H. Vogler
/
Assis' tant Chief Antitrust Counsel Dated at Bethesda, Maryland this 23rd day of February 1979.
ATTACHMEiT A NRC STAFF'S PRELIMI:lAR7 AME.'iC"E:iTS TO THE PG5E COMMITME:;TS */
I.
Definitions A.
" Applicant" means Pacific Gas and Electric Company and any successor corporation [or any assignee of this license].
B.
"[ Service] Acolic % Area" means Morthern and Central California includino that entire area within the exterior necerachic boundaries of the several areas electrically served [at retail], new or in the future, by Applicant [and those areas in Northern and Central California adjacent thereto].
C.
" Neighboring Entity" means a financially resconsible nrivate or public entity or lawful association thereof (excludina however Southern Cali fornia Edison Ccmcany) owning, contractually controlling or operating or in good faith proposing to own, to contractually control or to coerate facilities for the generction or bulk ocwer transmissica [at 60 kilovolts or above,1 of electric power which meets each of the followina criteria:
(1) its existinc or proposed facilities are or will be technically feasible of fdirectl inter-connection with those of Acplicant; (2) all or cart of its existino cr crocosed facilities are or will be located within the [ Service] Acolicable Area;
[(3) its primary purpose for owning, contractually controllina, or oceratina generation facilities is to sell in the Service Area the power generatedl; and [(4)] (31 it is, or upon conTnencement of operations will be, a cublic utility regulated under applicable state law or the Federal ?cwer Act, or exempted from regulation by virtue of the fact that it is a Federal, State, municipal, or other public entity.
l/ Srackets ([ ]) shcw deletiens frcm the :GIE Comitments; underlining indicates additiens ::: the PG5E Cceni trents.
D.
"Feighboring Distribution System" means a financially resconsible private or public entity which ennages, or in ecod faith procoses to encace, in the distribution of electric power at retail and which meets each of the criteria numbered (1), (2), and [(4)] (3) in subparacraph C above.
E.
" Costs" means all costs [ capital expenditures, administrative, general, operation and maintenance expensed, taxes, depreciation and costs of capital including a fair and reasonable return on Applicant's investment,1 which are properly allocable to the particular service or transaction as determined by (1) the regulatory authority having jurisdiction over the particuhr service or transaction, or (2) if no reculatory authority has jurisdiction over the carticular sel" ice or transaction, acreement of the pa rti es.
' F.
" Good Utility Ooerations [ Practice]" nans chose pra-tices and methods [and equipment], including levels of reserves and provisions for contingencies, as modified from time to time, that are cor=only used
[in the Service Area] to operate, reliably, [and] safely, and consistent with State and Federal environmental reculations. electric cower facilities
[to serve a utility's cwn customers decendably and econcmically, with due regard for the conservation of natural resources and the orotection of the environment of the Service Area], provided such practices, methods, modifications and the equipm".t necessary to maintain reliable and safe opo,erations of the interconnected systems are not unreasonable [ unreasonably restrictive].
G.
" Firm Pcwer" means that power which is intended to be available to the customer at all times and for which, in order to achieve that decree --.
of availability, adequate installed and spinning reserves as scecified in Section III of these conditiens and sufficient transmission (to move such power [and],c_rreserve: for that newer.to a coint on the system where it can be utilized) [to the load center] are provided.
'II. Interconnection Interconnection agreements negotiated pursuant to these license conditions shall be subject to the folicwing paragraphs A thrcugh G:
A.
Applicant shall not unreascnably refuse to interconnect and operate normally in parallel with any ?!eighboring Entity, or to inter-connect with any fleighboring Distribution System.
Such intercennections shall be consistent with Good Utility Ocerations [ Practice].
B.
Intercor' 'ction shall be at cne point unless otheraise recuested by the Neichborine Entity or ifeichborine Distribution System which is carty
[ agreed by the parties] to an interconnection agreement.
Intercennecticn shall not be limited to icwer voltages when higher voltaces are preferable frem the stand::cint of Gced Utility Ocerations [ Practice] and are available frem Applicant. Applicant may include in any inter: nnection acreement provisions that a tleignboring Entity or Meichborine Distribution System maintain the pcwer facter associated with its [lcad) system at a cer: arable level to that maintained by Apolicant in the same [geocrachicl area or in an-area with a similar load characteristic [and (21 use Or:: arable contr:1 mein:ds to achieve this cbjective].
C.
Interconnection agreements shall not revide for ecre extensive facilities cr c:ntrol ecuipment at the cointi of intarternecti:n : nan are 3-
required by Good Utility Ocerations [ Practice] unless the parties mutually agree that particular circumstances warrant special facilities or equictent.
D.
The Costs of additional facilities required to provide service at the points _ of interconnection shall be allocated pursuant to Definition I.E. [on the basis of the projected econcaic benefits for each party from the interconnection after consideration of,the various transactions for which the interconnection facilities are to be used, unless otherwise acreed by theparties].
E.
An interconnection agreement shall not impose limitations ucen the use or resale of capacity and energy sold or exchanged under the acreement except as may be mutually agreed ucon by the carties [ required by Good Utility Practice].
F.
An interconnectic agreement shall not prohibit any party frca entering into other interconnection agreements, but may provide that (1) Applicant receive 2 [ adequate], when necessary, advance notice of any acditional inter-connection arrangement with others, (2) in a cromat manner, the parties jointly consider and agree upon additional contractual provisions, measures, or equipment, which [may be] are recuired by Good Utility Ocerations [ racticel as a result of the new arrangement, and (3) Applicant may terminate the interconnecticn agreement if the reliability of its system or service to its custcmers would be imoaired [ adversely affected] by such additional interconnection arrangements.
G.
Applicant may include provisions in an interconnection agreement requiring a Neighboring Entity or Neighboring Cistributien System to develoo...
with Applicant a coordinated procram for underfrequency load shedding and tie separation so as to reduce their loads by the same cercentace at the same frecuencies if oossible. Under such programs, the parties shall equitably share the interruption or curtailment of custcmer load taking into z
consideration the size of the fleichborina Entity or f!eichborina Distribution System and the nature of its load.
e G
9
.s.
III.
P.eserve Coordination Interconnection agreement negotiated pursuant to these license conditions shall be subject to the following paragranhs A throuah E regarding reserve coordination:
A.
Applicant and any fleighboring Entity with which it inter-connects shall jointly establish and when anorcoriate, re-establish 2
[ separately maintain] the minimum planned reserves to.be installed or otherwise provided under an interconnection agreement, and each shall use its best efforts to maintain such minimum reserves. Unless otherwise mutually agreed upon, reserves shall be expressed as a percentage of estimated annual [ firm] peak load less the estimated interruotible load, and the minimum planned reserve percentage shall be at least equal to Aanlicant's leaitimately planned reserve percentace witMut the interconnection. A fleichbor-ing Entity shall not be required to provide reserves for that portion of its load which it meets through purchases of Firm Power.
[Hhile different reserve percentages may be specified in various interconnection acreements no]
flo party to an interconnection agreement shall be required to [ provide]
plan for a greater reserve percentage than Applicant's legitimately planned reserve percentage. [, except that if] E the total reserves Applicant must providd to maintain system reliability equal to that existing without a given interconnection arrangement are increased by reason of [the newl that interconnection arrangement, then the other party [or parties] may be required to install or provide additional reserves in the full amount of such increase [.]; provided, however, that if such increase is due wholly or in cart to the initial imolementation of these license conditicns, then the other carty is not recuired to install or provide that oortion of such increase due solely to the initial imolementation of these license ccnditicns.
6-
8.
Applicant and Neighboring Entities with which it interconnects shall jointly establish and, when acorocriate,re-establish [ separately maintain] the minimum spinning reserve [s] level to be orovided by available capacity or load drocoing under an interconnection agreement, and each shall use its best efforts to maintain such minimum levels. Unless otherwise mutually agreed upon, spinning reserves shall be expressed as a percentage of peak load and the minimum spinning reserve percentace shall be at least equal to Applicant's spinning reserve percentage without the interconnection. A Neighboring Entity shall not be required to orovide spinning reserves for that portion of its load which it meets throuah purchases of Firm Power.
[While different spinning reserve cercentaces may be specified in varicus interconnection agreements,"n3 lo party to an interconnection agreenent shall be required to provide a greater spinnino reserve percentage than that which Applicant provides, except that if the total spinning reserves Applicant must provide to maintain system reliability equal to that existing without a given interconnection arrangement are increased by reason of the new arrancemant, then the other oarty [or partiesl may be required to provide additional spinnina reserves in the full amount of such increase [.]; orovided. however, that if such increase is due wholly or in part to the initial imnlementation of these license conditions, then the other carty is not recuired to nlan for that cortion of such increase due solely to the initial inclementation of these license conditions.
C.
Applicant shall establish a service schedule and shall offer to sell oursuant to such service schedule, en reasonable terms and con-titions, including a scecified pericd, surolus capacity to a Neichboring Entity for use as reserves if such cacacity is neither needed for Acciicant's own system nor centractually ccanited and scheduled to be sold to others anc 7-
if the f!eighboring Entity will,unless prohibited by law, offer to sell, on reasonable terms and conditiens, its own such surolus capacity to Acolicant.
D.
Applicant may include in any interconnection acreement pro-visions requiring a fleighboring Entity to comoensate Applicant for its Cost for any reserves Applicant makes available as the result of the failure of such f!eighboring Entity to maintain all or any part of the reserves it has agreed to provide in said interconnection agreement.
E.
Applicant shall offer to coordina+e maintenance schedules with Neighboring Entities interconnected with Applicant and to exchance or sell maintenance capacity and/or enercy when such capacity and/or energy are available and it is reasonable to do so in accordance with Good Utility Operations [ Practice].
IV.
Emercency Power Applicant shall sell emergency power to any [ interconnected] Meich-boring Entity [which maintains the level of minimum reserve acreed uocn with Applicant, agrees] which has acreed with Acolicant to use due diligence to correct the emergency, has acreed [ agrees] to sell emergency cower to Applicant (unless orchibited by law).and with which Acolicant has established a level of minimum nianned reserves. Acolicant shall encace in such transactions if and when capacity and/or energy for such transactions [are] is, available s
from its own generating rescurces, or may be obtained by Aoplicant from otner sources, but only to the extent that it can do so without imoairino service to Applicant's other firm retail [or wholesale] power customers and without recuirine Acolicant to limit er curtail sucn emercency service then beino orovided to another system or curtail interructible service i f the re-cuestinc '?eiqqbcrinq Entity has not curtailed its interruotible service
[or' impairing its ability to discharge prior ccmmitments].
8
V.
Other Power Exchances Should Applicant have on file, or hereafter file, with the Federal Power Commission or other reculatory acencies, acreements or rate schedules providing for the sale and purchase of short-term capacity and eneray, limited-term capacity and energy, long-term cacacity and enercy,[or]
ecc.1cmy energy, or other forns of cacacity and enercy, Aoplicant shall, on a fair and equitable basis, enter into like or similar arrancements centainina accrocriate rates and conditig [ agreements] with any fleichborino Entity, when such forms of capacity and energy are available [, recocnizine that past experience, different ecc.amic conditions and Gocd Utility Dractice may justify different rates, terms and conditions]. Applicant shall respond promptly to inquiries [of] M iteighboring Entities concerning the availability of such forms of capacity and energy from its system and shall oronntiv file an accrocriate rate schedule for such service.
VI. Wholesale Power Sales Upon request, Applicant shall offer to sell firm, full or partial requirements power for a specified period to an interconnected Neichbor-ing Entity or fleighbcring Distribution System under a contract with reasonable terms and conditions including provisiens which permit Apoli-cant to recover its Costs.
Such wholesale cower sales must be consistent with Good Utility Ocerations [ Practice]. Applicant shall not be required to ' sell Firm Power at wholesale to a new custcmer if it does not have available, for the scecified ceriod sufficient ceneration or transmission to supply [the requested service or if the sale would impair service tol its then-existina retail or wholesale customers [cr its ability to discharce prior cc=1itments].
VII. Transmissicn Services A.
Applicant shall transmit pcwer pursuant to [ interconnection]
agreements [,] with provisions which are apercpriate to the recuested transaction and which are consistent with these license conditions.
Except as listed belew, such service shall be provided (1) between two or among more than two f eighboring Entities or sections of a ileichborino Entity's system which are geographically secarated, with which, new or in the future, Applicant is interconnected. (2) bet cen a !!eighboring Entity with which, now or in the future, [it] Aeolicant is interconnected and one or more fleighboring Distributicn Systems with which, new or in the future, [it] Acolicant is connected and (3) between any ?!eighborinc Entity or fleighboring Distrib; tion System (s) and the Apolicant's coint of direct interconnection with a ecwer scurce within the Acolicable Area or another [any other] electric system engaging in bulk power supply cutside l
the Acolicable Area [ area then electrically served at retail by Acplicant.
[ Applicant shall not be required by this Section *.o transmit ecwer (1) from a hydroelectric facility the ownership of which has been involuntarily transferred from Acplicant or (2) frca a tieighboring Entity for sale to any electric system located outside the extericr cecorachic boundaries of the several areas then electrically served at retail by Anglicant if any other :leighboring Entity, fleighboring Distribution System, or Acclicant wishes to purchase such pcwer at an equivalent price for use within said areas.] Any !!eighboring Entity or l'eighboring Distribution Syscen(s) requesting transmissien service shall give reascnable advance notice to Applicant of its schedule and recuirements. Acplicant shall not be required by this Secticn to provide transmissicn service if the croccsed transaction would be inconsitent with Good Utility Coerations.fPractice or if the necessary transmission facilities are comitted at the time of the request to be fully-loaded during the pericd for which service is requested, or have been previously reserved by Apolicant for emercency purposes, loop flow, or other uses consitent with Good Utility Practice; provided, that with respect to the Pacific Northwest-Southwest Intertie, Applicant shall not be required by this Section to nrovide the requested transmission service if it would impair Applicant's cwn use of this facility consistent with the Bonneville Project Act, (50 Stat. 731, August 20,1937), Pacific Northwest Power itarketing Act (78 Stat. 755, August 31,1964) and the Public Works Appropriations Act, 1965 (78 Stat.
682, August 30,1954.]
B.
Applicant shall include in its planning and construction programs such increases in its transmission capacity or such additional transmission facili-ies as may be required for the transactions referred to in paragraph A of this Section, provided any '!eighborina Entity or Neighboring Distribution System gives Applicant sufficient advance notice as may be necessary to acccmmodate its requirements from a regulatory and technical standpoint and provided further that the entity requesting trans-mission services compensates Applicant for the Costs incurred as a result of the request. Where transmission capacity will be increased or additional trans-mission facilities will be installed to provide or maintain the requested service to a Neighboring Entity or Neighboring Distribution System, the Costs of such additional cacacity or facilities shall be allocated
~ ~
pursuant to Definition I.E.
[ Applicant may requi re_,
in addition to a rate for use of other facilities, that payment of Costs associated with the increased capacity or additional facilities shall be made by the parties in accordance with and in advance of their respective use of the new capacity or facilities.] The Acolicant may recuest the Neiahborino Entity or fleichboring Distribution System to make ( within a reasonable time crior to construction of the facilities) a non-refundable contribution in aid of construction ecual to the difference between the estimated cost of the transmission facilities Acolicant would construct for its own use and the estimated cost of the transmission Facilities Acolicant would construct for the use of itself and the Neichborir.g Entity or Neighboring Distribution System.
Acolicant shall cermit a Neichboring Entity or Neichborina Distribution System, at its cotion, to own (1) that certien cf Additional transmission facilities con,structed oursuant to this Section which is financed by that Neichborino Entity or Neichborino Distribution System, and (2) that oortion of those transmissien facilities associated with jointly cwned nuclear units which is financed by that Neichboring Entity or Neichboring Distri-bution System..
C.
Nothing herein shall recuire Applicant (1) to construct additional trans;nissicn facilities if the constructicn of such facilities [is] vculd be inconsistent with Goed Utility C:eraticns [Prictice] cr if such facilities
[could be constructed without duplicating] wculd unreasonably duplicate any portion of Applicant's transmission system, (2) to provide transmission service to a retail customer or (3) to construct transmission outside the [ area then electrically served at retail by Applicant] Acclicable Area or beyond a reasonably croximate distance frem Acolicant's electrical facilities if such transmission would be used solely by the Neichbcrinc Entity.
D.
Rate schedules and agreements for transmission services provided under this Section shall be filed by Applicant with the regulatory agency having juris-diction over such rates and agreements.
VIII. Access to Nuclear Generation A.
If a Neighboring Entity or Neighboring Distribution System makes a timely request to Applicant for an cwnership carticipation in the Stanislaus Nuclear Project, Unit No. 1 or any future nuclear generation unit of.thich Acolicant is co-cwner or for which Applicant acplies for a construction per-it or cceratinc license during the M [2C]-year period irediately following the date of the construction permit for Stanislaus Unit No.1, Applicant snall Offer the requesting party an opportunity to participate in such uaits and associated transmissien facilities, up to [an]~a Feascnable a cunt [reascnable in light of] considerinc. ncnc other thinns, the relative leads of the participancs.
'li t h respect to Stanislaus Unit No. i or any future nuclear generating unit, ?:clicarc _
shall mail.at least six IG) months prior to the first submission or a notice of intentien or ernit acclication for cut"crizatien frc a State acency to con::'uct such a unit, [a request for participation shall be deemed timely if received within 90 days after the mailing by Applicant] to Neighboring Entities and Neighboring Distribution Systems [of] an announcement of its intent to cwn a cortion er all of the unit, or to construct the unit which anrcuncement shall include an invitaticr.
2 to carticioate [a recuest for an expression cf interest in participation].
A re-ouest for carticication shall be deemed timely if received within 90 days after the mailine of such anncuncement.
Participation shall be on a basis wnich compansates Applicant for a reasonable share of all its Costs asscciated with the unit and associated transmissien facilities [ Costs incurred and to be incurred, in planning, selecting a site for, constructing and operating the facility].
B.
Any Neighboring Entity or any Neighboring Distribution System making a timely request for participation in a nuclear unit must enter into a legally binding and enforceable agreement to assume financial responsibility for its share of the Costs associated with participation in the unit and associated transmission facilities.
Unless crchibited by law or othersise agreed by Applicant, a Neighboring Entity or "eighboring Distribution System desiring participation must have executed [ signed] such an agreement within two years [cne year] after Applicant has provided to that Neighboring Entity or Neighboring Distributicn System pertinent and sufficient financial and technical data bearing on the feasibility of the pr0 ject which are then available to Applicant crovided t"at 3
Acolicant has sucolied a final contract concerning such carticication at least.
0
'l one year in advance of the recuired execution. Applicant shall provide additior.al pertinent data as they beccme available during the year. The requesting party shall pay to Applicant forthwith the additional expenses incurrec by Applicant in making such financial and technical date available.
In any participation agree-ment subject to this Section, Applicant may require provisions requiring payment by each participant of its share of all costs incurred up to the date of the agreement, requiring each participant thereafter to pay its pro rata share of funds as they are expended for the plar.ning anc construction.of units and related transmission or other facilities, and requiring each participant to make such financial arrangements as may be necessary to ensure the ability of the participant to continue to make such payments.
C.
Acolicant, any Heichborina Enticy,or any Neichborino Distribution System may withdraw from carticioation in the unit at any time criar to sixty days after the issuance of a certificate of Public Convience and Mecessity by the California Public Utility Commission.
IX.
Imolementation A.
All rates, charges, terms and practices are and shall be subject to the acceptance and approval of any regulatory agencies or courts having jurisdicaticn over them.
B.
Nothing contained herein shall enlarge any rights of a Neighboring Entity or Neighboring Distribution System to provide services to retail custcmers of Applicant beyond the rights they have under state or federal law. _
C.
Nothing in these license conditions shall be construed as a waiver by Applicant of its rights to contest, before the "uclear Reculatory Commission the application of any commitment herein to a particular factual situation.
[D. These license conditions do not preclude Applicant from applying to any appropriate forum to seek such changes in these conditions as may at the time be appropriate in accordance with the then-existing law and Good Utility Practice.]
[E.] D.
These license conditions do not require Applicant to become a common carrier.
E_. Any initial rate schedule (includinc an initial contract submission) associated with these license conditions which Acolicant files with any reculatory agency having jurisdiction shall include a orovision that (1) if within thirty (30) days after such filinq by the Acolicant a trotest or comolaint with resrect thereto is filed with such reculatory acency, (2) if the suomitted rates become effective crior to the resolution of any contested issued set forth in such protest or ccmolaint, and (3) if such submitted rates are thereafter reduced in accordance with regulatory oraceedings and findincs, then within thirty (30) days after issuance of a final agency order effecting such reduction, the Acolicant shall make accroariate retroactive refunds (includinn interest) to reflect such reduction.,
a h'# **%
uu TED STATES WQ 3 A:Cj!( ;
ATTACHMEtiT B e t fluCLcAP. nECULATCnY CCf.;*.11::slOfJ ly j
WASWNGTON D. C. 20035 s
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December 7, 1977 Terry J. Houlihan, Esq.
H. Chester Horn, Jr., Esq.
McCutchen, Doyle, Brown & Enerson Deputy Attorney General Three Embarcadero Center, 28th Flcor Office of. the Attorney General San Francisco, California 94111 3580 Wilshire Blvd., Suite 800 Los Angeles, California 9C010 Michael J. Strumwasser Robert C. McDiarmid, Esq.
Deputy Attcrney General of California Peter K. Matt, Esq.
555 Capitol Mall, Suite 550 2600 Virginia Avenue, fl. W.
Sacramento, California 95814 Washington, D. C.
20037 Re: Pacific Gas and Electric Company (StanislausfluclearProject, Unit fio.1) fiRC Cocket tio. P-56Q 5
i t
Gentlemen:
i Attached is the second draft of Staff's proposed Stanislaus License Conditions. This draft reflects the results of Staff's consideration and judgment of coments by PG&E and Intervenors on our first draft circulatid June 27, 1977.
~
These proposed License Conditions are not for distributicn. They merely represent the tiRC Staff's current thoughts, before it has ccmoleted discovery, and at this time they are intendec to serve only as negotiating documents for the purpose of settlement botn bet'. een the !!RC Staff and PG&E and among all parties. The Staff is free to propose different or additional license conditions at any time. Of course, if no settlement is reached, the Staff is also free to propose to the Licensing Board any license conditions it deems appropriate.
On Tuesday, December 13, 1977, the tiRC Staff will meet with PG&E re-garding the second draft of Staff's prcposed Stanislaus License Cccditions.
It is the Staff's intention to hold a meeting among all parties in the near future concerning aporopriate license conditions for Stanislaus. We expect the secono draft of Staff's prcpcsed License Conditions to serve as a basis for discussion at such a meeting.
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4 i
I i '
I The Staff remains available to any and all parties in any way which might serve to resolve all or some of the issues raised in this proceeding.
Very truly yours,
b
- /
y Jack R. Goldberg Counsel for flRC Staff
Enclosure:
as stated e
e e
a e d
9 eA O
se O
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- 4 UNITED STATES OF AMERICA NUCLEAR REGULATORY COMMISSIO t BEFORE THE ATCMIC SAFETY AND LICENSING BCARD In the Matter of
)
)
PACIFIC GAS AND ELECTRIC
)
NRC Docket No. P-554A COMPAttY
)
(Stanislaus Nuclear Project,
)
Unit No. 1)
)
CERTIFICATE OF SERVICE I hereby certify that copies of NRC STAFF'S PRELIMINARY COMMENTS CON-CERNING THE PG&E CC-MMITMENTS in the above-captioned proceeding have been served on the following by deposit in the United States mail, first class, or, as indicated by an asterisk, through deposit in the Nuclear Regulatory Commission's internal mail system, this 23rd day of February 1979.
Marshall E. Miller, Esq., Chairman George Spiegal, Esq.
Atomic Safety and Licensing Board Robert C. McDiarmid, Esq.
U.S. Nuclear Regulatory Commission Daniel I. Davidson, Esq.
Sandra J. Strebel, Esq.
Washington, D.C.
20555 Peter K. Matt, Esq.
Seymour Wenner, Esq.
Bonnie S. Blair, Esq.
Atomic Safety and Licensing Board Thomas C. Trauger, Esq.
4807 tiorgan Drive 2500 Virginia Avenue, N.W.
Chevy Chase, Maryland 20015 Washington, D.C.
20037 Edward Luton, Esq.
Evelle J. Younger Atomic Safety and Licensing Board Attorney General of California U.S. Nuclear Regulatory Commission Michael J. Strumwasser Deputy Attorney General of Washington, D.C.
20555 Cali fornia Donald A. Kaplan, Esq.
555 Capital Mall, Suite 550 P.O. Box 14141 Sacramento, Cali fornia 95814 Washington, D.C.
20044 Morris M. Doyle, Esq.
Jercme Saltzman, Chief William H. Armstrong, Esq.
Antitrust and Indemnity Group Terry J. Houliha_n, Eso.
U.S. Nuclear Regulatory Commission Meredith J. Watts, Esq.
McCutchen, Doyle, Brown & Enersen Washington, D.C.
?C555 Three Embarcadero Center, 23:h Floor Philip A. Crane, Jr.
San Francisco, California 94111 Glen West, Esq.
Richard L. Meiss, Esq.
H. Chester Horn, Jr., Esq.
Paci fic Gas & Electric Company Deputy Attorney General 77 Beale Street Office of the Attorney General San Francisco, Cali fornia 94105 3530 Wilshire Blvd., Sui te ECO Los Angeles, Cali fornia 9C010
4 s
2 Docketing and Service Section Office of the Secretary U.S. Nuclear Regulatory Commission Washington, D.C.
20555 Clarice Turney 3900 Main Street Riverside, California 92521 Atomic Safety and Licensing Board U.S. Nuclear Regulatory Comission Washington, D.C.
20555
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Q.
I ;O c Jack R. Golcberg
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{ounsel for NRC Staff,/7
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