ML19308B209

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Intervenors' Proposed Findings of Fact & Conclusions of Law Asserting Proposed Reactors Are R&D Facilities & Not Practical for Commercial Purposes, & AEC Has No Jurisdiction to Issue R&D Licenses & Cp.Certificate of Svc Encl
ML19308B209
Person / Time
Site: Oconee  Duke Energy icon.png
Issue date: 10/10/1967
From: Harris J, Reeder S, Tally J
PIEDMONT CITIES POWER SUPPLY, INC.
To:
References
NUDOCS 7912160121
Download: ML19308B209 (26)


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, 1 Before The UNITED STATES ATOMIC ENERGY COMMISSION Docket Nos. 50-269, 50-270, and 50-287 MATTER OF THE APPLICATION OF DUKE POWER COMPANY FOR LICENSES UNDER THE ATOMIC ENERGY ACT OF 1954, AS AMENDED, FOR THE CONSTRUCTION AND OPERATION OF OCONEE NUCLEAR STATION, UNITS 1, 2 and 3.

INTERVENORS' PROPOSED FINDINGS OF FACT AND CONCLUSIONS OF LAW Jack R. Harris Suite 207 - Stimpson-Wagner Building Statesville, North Carolina J. O. Tally, Jr.

P. O. Drawer 1660 Fayetteville, North Carolina l Spencer vV. Reeder Spencer Building St. Michaels, Maryland Attorneys for Intervenors G-w -- - -e -- w w - m y

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^i h~Q' Before The UNITED STATES ATOMIC ENERGY COMMISSION s.

Docket Nos. 50-269, 50-270, and 50-287 MATTER OF THE A??LICATION OF DUKE POWER COMPANY FOR LICENSES UNDER THE ATOMIC ENERGY ACT OF 1954, AS AMENDED, FOR THE CONSTRUCTION AND OPERATION OF OCONEE NUCLEAR STATION, UNITS 1, 2 and 3. .

INTERVENORS' PROPOSED FINDINGS OF FACT AND CONCLUSIONS OF IAW

l. STATEMENT These "Intervenors' Proposed Findings of Fact and Conclusions of Law" are filed pursuant :o order of the A:omic Safety and Licensing Board, Honorable Samuel W. Jensch, Chairman, issued at the close of the public hearing herein at Walhalla, South Carolina, on September 12, 1967, authorizing the filing of this document on or befora October 10, 1967.

(Tr. 589)

This case concerns the application of Duke Power Company ("Applican:")

for licenses under the Atomic Energy Act of 1954, as amended, and specifi-cally for Research and Developmen: Licenses (including a construction permit), applied for under..Section 104 (b) of the Act, ":o cons:ruc:, own,

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J l use and operate" the utilization facilities hereinafter described as an integral part of a nuclear electric generating plant to be located in "Oconee Nuclear Sta: ion" consisting of three pressurized water type reac:crs (PWR's), (application p. 7, par. e.), and appurtenant facilities.

The fundamental question of law raised by Intervenors in their pleadings and at the hearing is whether er not the Commission has jurisdiction under Section 104 (b) of the Atomic Energy Act of 1954, as amended, to gran: :o Duke Power Company Researchand Development licenses (including a construction permit), "to construct, own, use and operate" for forty years said three Pressurized Water Type Reac: ors.

2. THE SOI.E QUESTION OF JURISDICTIONAL FACT FOR DETERMINATION SY THE ATOMIC SAFETY AND LICENSING BOARD.

The sole question of jurisdictional fact for de:ermination by the Atomic Safety and Licensing Board is: .

Has Applican:, Duke Power Company, sustained its jurisdictional burden of proving that the Pressurized Water Type of Reactor to be employed by Duke in each of b three units of the proposed Oconce Nuclear Station is (1) a Research and Development utilica:1cn facility and (2) of a type which does not have practical value for commercial purposes.

3. APPLICABLE STATUTE The applicable statute, insofar as material here, reads as follows:

The Atomic Enerev Act of 1954, as amended See: ion 11; 4'2 U.S.C. Sec. 2014. Definitions "The in:en: cf Congress in :b definitions as given in this section should be construed from the words er phrases used in the defini:1cns. As used in this chapter:

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-. o (x) The term "researchand developmen:" means (1) theoretical analysis, explora: ion, or experi-menta: ion; or (2) the ex:ension of investigative findings and theories of a scien:ific or technical nature into practical applica:1cn for experimental cr demonstration purposes, including the experi-mental production and testing of models, devices, equipment, materials, and processes."

cc. The term ' utilization facill:y' means (1) any equipment er device, excep an a:cmic weapon, determined by rule of the Commission to be cap-abic of making use of special nuclear material in suchquantity as to be of significanco to the common defenso and security, er in such manner as to affect the health and safety of the public, or pcculiarly adap;cd for making use of atomic energy in such quantity as to bc of significance to the common defense and security, or in such manner as to affect :he health and safety of :ho public; or (2) any imper:an: component par: especially designed for such equipment or device as determined by the Commis sion."

Sec. 101; U.S.C. Sec. 2131. License 'Recuired "It shall be unlawful, except as provided in Section 91 (42 U.S.C. Sec. 2121) for any person within the United States to produce, transfer, acquire, possess, use,

  • import, er ex;cr: any utilizatica cr production facility except under and in accordance wl:h a license issued by the Commission pursuant to Section 103 or 104 (42 U.S.C. Sec. 2133 or 2134)

Sec. 102. (42 U.S.C. Sec. 2132) Findinc of Practical Value.

"Whenever the Commission his made a finding in writing that any tvce u:ilization or produe: ion facility has been st.fficiently developed to be of -

practical value for indus: rial cr commercial purposes, the Commission may :hareaf:er issue licenses for

  • Public Law S4-1006 (70 Stat.1059), sec.11, added the word "use"

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. .. v G' iv such type of facility pursuan: to section 103 (42 U.S.C. Soc. 2132)" .

Sec. 103. (42 U.S.C. Sec. 2133) Commercial I.icenses "a. Subsequent to a finding by the Commission as required in Section 102 (42 U.S.C. Sec. 2132), the Commission may issue licenses :o transfer or receive in interstate commerce, manufacture, produce, trans-fer, acquire, possess, use,

  • import, or ex;cr: under the :erms of an agreement for cooperation arranged pursuan: to Section 123, (42 U.S.C. Sec. 2153), such type of utilization or production facility. Such licenses .

shall be issued in accordance with the provisions of Chapter 16 (42 U.S.C. Ch. 23, A:cmic Er.ergy, Sub-chapter XV Judicial Review and Administrative Procedure) and subject to such conditions as the Commission may by rule or regulation establish to effectuate the purposes and provisions of this Ac ."

"c. Each such license sball be issued for a specified ,

period, as determined by the Commission, depending on the lyse.of activity to be licensed, but not execeding for:y years, and may be renewed upon the expiration of such period." .

i Se c . 10 4. (42 U.S.C. Soc. 2133) Medical Thoraov and -

Research and Develocment "b. The Commission is authorized to issue licenses to , '

persons applying therefer for utilization and production facilities involved in the condue: of research and development activities leading to the demonstra:1cn of the practical value of such facilities for indus: rial and commercial purposes. In issuing licenses under this .

subsection, the Commission shall impose the minimum amount of such regulations and terms of license as will permit the Commission to fulfill 1:s obligations under I this Act to promote the common defense and security and '

to protect the heal:h and safety of the public and will be compatible with the regulations and terms of license which would apply in the event that a commercial license were later to be issued pursuan to section 103 for that

  • Public Law 84-1006 (70 Stat.1069), Sec.11, added the word "use"

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].  : vee of facility. In issuing such licensos, pricrity shall be given to : hose activities which will, in the opinion of the Commission, lead to major advances in :h) application of atomic energy for industrial and l commercial purposes." l Section 105. (42 U.S.C. Soc. 2135), Antitruct Provisionc.

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"a. No hing contained in this Act :: hall relievo any person from the operation of the following Acts, as

' amended, 'An Ac: to protect trade and commerco agains unlawful restraints and monopolics', approved l July second, cightoon hundred and ninc:y; (26 Stat.

209,15 U.S.C.1-7;) soc: ions seven:y-three to

seventy-seven, inclusive, of an Act anti: led 'An Act

! :o reduce taxation, :o provide revenue for the Govern-ment, and for o: hor purposes' approved August

twenty-seven, eighteen hundred and nine
y four; i 'An Act to supplement exis:ing laws against unlawful

} restrain:s and monopolies, and for other purposes' I approved Octcber fifteen, nine:een hundred and founeen; and 'An Act to create a Federal Trade Commission, to define its power and duties, and for other purposes' approved September twenty-six, nine-teen hundred and four:een. (25 S:a:. 570,15 U.S.C.

j 8-11. 38 Sta:. 730,15 U.S.C.12-27, 44; 18 U.S.C.

402; 29 U.S.C. 52, 53; 38 S:a:. 717,15 U.S.C. 41-49.)

j (Ti:le 15 U.S.C. A. Sections 1-13, 14-19, 20, 21, 22-27, 41-46, 47-43; Title 29 U.S.C.A. Sec:icns 52 and 53.) In :he event a licensee is found by a coun of competent jurisdiction, ei:her.in an original ac: ion in

that coun or in a proceeding o enforce or review the

! findings or orders of any Governmen: agency having jurisdic: ion under the laws cited above, to have vio-

! 1a:ed any of the provisions of such laws in the conduct

!- of the licensed activi:y,; the Commissicn may suspend, .

[ revoke, or take such c:her action as 1: may deem necessary with respect to any license issued by the Commission ur. der the provisions of this Act."

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f 4. PRELIMINARY ANALYSIS U;cn the sole ques: ion of jurisdictional fact for determination by l ,

the A:omic Safe:y and Licensing Board, the evidence suppens only one

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ultima:e finding, nacoly:

Tha: Applican , Duke ?c'ver Cc=pany, has no: sustained its jurisdic:ional burden of proving tha: the Pressurized Water Type of Reac:cr to be employed by Duke in each of the three uni:s of tha proposed Oconee Nuclear Station is (1) a Research and Developmen: utiliza: ion facili:y; and (2) of a type which dcas not have prac:ical value for commercial purposes.

5. Acclican:, Duka Power Comnanv, has not susic.ined its iuric-diciicnal burdon of creof to show that the Pressurized Water Ty0e of Reac:cr to be omcloved in the Oconeo Nuclear Station, Units 1, 2 and 3 is a Researchand devaloement Utilization Facility.

A. The Applican: canno: sus:ain its Research and Development type of facility burden of proof in the face of the purchase by utilities and sale by manufac:urers of the :en Pressurized Wa:er Type Reac:crs licensed by the Co==ission in the years since 1960, fer.cen:ral s:a: ion nuclear power plan: use, as follows: (Intervencrs Exhibit 2 and 3)

(1) Indian Poin: Statier., Unit 1 (Cons. Edisen Co. of New Ycrk) Indian Point, N.Y., has a capacity.in net megawa::s electrical (=we) of 270; (270,000 kilowatts (kw) ) is a fressurizad Water Tvne of Reae:cr (?WR);

received a cons: rue: ion permit in 1956; and has been in "cc==ercial opera:1cn" according o an official publica-tion of AEC (In:ervencrs' Exhibi: 2) since September of 1952. Babcock and Wilcox is the con:ractor. AEC Docke: No. 50-3.

(2) San Onofre Nuclear Generating Sta: ion (S. Calif.

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Edison and San Diago Gas and Electric), San Clemente, Calif., has a capacuy of 430 mwe (430,000 kilowa::s);

is a Pressurized Wa:er Type of Reacter; was licensed by the AEC in March of 1964a; should have been opera:ional in 1966 bu: for " deliberateness in following star:-up program and non-nuclear cporational problems; and is now classified by an official AIC publica ion (In:ervenors' Exhibi: 2) as an " operating reac:or" . Westinghouse is

he contrac:cr. AEC Decket No. 50-206 (3) Yankee Nuclear Power Station (Yankee A*omic Electric Co.)Rowe, Macs., has a capaci:y of 175 mwe (175,000);

is a ?rcssurized Water Tvce of Reacter (?W3); recoised a cons: rue: ion pctmit in November of 1957; and has been in

ecmmercial onoration," according to an official pt.blica-

icn of the AIC since July of 1961. Westinghouse is the con:rac:or. AEC Docket No. 50-29.

(4) H. 3. Rchinson Uni: No. 2 (Carclina ?cwor and I.icht Co.), Hartsville, Scu:h Carolina; has a capacity of 663 mwe (563,000 kw); is a Pressurized Water Tvee of Reacter; was licensed by the AEC in April of 1967; construction is scheduled to be completed in early 1970, "wi:h commercial operation to s:ar: abou: mid-1970," acccrding to an official AEC publication. (Intervencrs' Exhibi: 2) Westinghouse is the con:rac:cr. AECDocke: No. 50-261 -

(5) Indian ?cint Sta:icn. Unit 2, (Cons. Ed. Co. of New Ycr.d. Indian ?cin:, N.Y. , has a capaci:y of 373 mwe (873,000 kw); is a Pressurized Water Tyoc Reae:or (?WR);

was licensed by the AEC on October 14, 1966; and construe: ion comple:icn is scheduled for the spring of l

1969. Wes:inghouse is the con:racter. AEC Docke: No.

50-247 l (5) Palisades Nuclear ?cwer Statien (Consumers cower Co. of Mich.), Palisades Park, Cover: Township, Michigan; has a capaci:y of 700 mwe (700,000 kw); is a Pressurized Water Type Reacter (?WR); was licensed by AEC on March 14, 1967; and is scheduled for operation by the spring of 1970. Combustion Engineering is the contrac:cr. AIC ,

Docket No. 50-255 j (7) Turkey ?cint S:ation, Uni: 3 (Flcrida Power and Ligh:

Co.), Turxey ? In:, Dace Co. , Fla.; nas a capacny of 722 mwe (722,000 kw); is a Pressurized Wa:er Tyos Reae:or

(?WR1; was licensed by AIC on April 27, 1957; anc is

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schoduied to go into opcration during 1970. Wes:inghouse is th3 contrac:cr. AIC Docke: No. 50-250 (3) Turkav Poin: S:M ic n, U ni: 4 (?h. Powar & Licht Co.1, Turkey Pcie:. Dade Co. . Fis.; 25 miles sou:h of Miami; has a capacny of 722 mwo (722,000 kw); is a Pressurized Water Tvee Reac:ct (PWR); was licensed by AEC cn April 27, 1967; and is scheduled to go in:o opera:1cn during 1971. Westinghouse is the con:rac:cr. AZC Docke: No.

50-251 (9) Rcber: Emme:: Ginna Plant, Unit 1 (Rechster Gas and Electric Co.), Ontario. N.Y. (formerly "Srcokwcod"); has a capacity of 420 mwo (420,000 kw); is a Pressurized Water Tvee Reac:cr (?WR1; was licensed by AIC on April 25, 1966; and is scheduled to go into opers:icn in 1969. Westinghouse is :b ccntractor. AZC Dccket No. 50-244 (10) Connecticut Yanken Ator.uc Power Plint (Conn. Yankoo Atomic Power Comeanvi Haddam Nock. Conn., has a ecpacity in no: megawat:s electrical (mwc) of 4G2; (462,000 kilowat:3)

(kw), is s Pressurized Water Tvec of Reactor (PWS); roccived a construe:icn permi: in 1954; construction was more than 30% completo a::he enc of 1966, and procecding on schedule; fuel loading was scheduled to star: about March 1967. We s:-

inghouse is the con:rac:cr.

3. Applican: cannot sus: sin its Research and Development :ype of facility burden of preff in the face of the fur:her purchase by utilities and sale by manufac:urers for Central S ation Power Plan use as shown by the following license Applica:icns for .9 =cre PWR's new pending befers
he Commission (Intervencrs' Ex. 2, 3)

(1) Docke: No. 285. Omaha Public Power District. For:

Calbun Plan:, For: Calhoun, Neb. 450 mwe.

(2) Docke: No. 50-280, Vircinia Electric and Power Co.,

Unit 1, Hog Island, Virginia. 7 8 3 .we .

-(3) Decke: No. 50-231, Vircinia Electric and Power Co.,

Unit 2. Ecq Island, Virginia. 732 mwe.

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(4) Docke: No. 50-275, Pacific Gas and Elec:ric Comeany, Diablo, San Luis Cbispo, Calif. 1C50 mwe.

(5) Docket No. 50-272, Public Serv:ce Electric F, Gas Co. , Burlinc:en Nuc! car Genera:ica Str.tien, Unit 1, Burlington, N. J. 993 mwe.

(6) Decke: No. 50-214, Los Anceles Dee:. of Water and Power, Malibu Nuclear Plant, Uni: 1, Corral Canyon, Calif. 462 mwe.

(7) Decke: No. 50-266, Wis-Mich ?cwer Co. , Point Beach Nuclear Plan: Uni: 1, Two Creeks, Wis. 455 mwe.

(S) Dccket No. 50-289, Metrc;clitan Edison Comeany of Pennsvivania, Dree Mile Island Uni: No.1. 839 mwe .

(9) Oconee Nuclear Station, Duke ?ower Comcanv, Walhalla, S. C. 2622 mwe.

C. Applicant cannot sustain its Research and Development type of i

facility burden of proof in :ho face of :he fur:hcr sale by manufac:urers and purchase by u:ilities for cen:ral sta: ion power plan: use of the follow-ing six additional Pressurized Water ?/pe Reactors, disclosed by Applicant's wi:nesses Lee and Montgomery, for which license Applica:icns had not ye heen filed in all cases wita :he A:omic Energy Commission, the capacity of which being :herefore largely unknown.

(1) Baltimore Gas and E!ectric Com:any, Calver: Cliffs, Maryland. (Lee, Tr. 311; Men:gc=ery, Tr. 384) .

(2) Tersev Central Power and Lich: Company. (Lee Tr.

312; Mon:gomery, Tr. 384)

(3) Mid-South Utilities Com anv, Arkansas ?cwer and Ligh: (Lee Tr. 312; Montgomery, Tr. 334)

(4) ?!crida Power Ccep., Crystal River, Uni: 3. (Lee Tr. 312; Montgomery, Tr. 384) 32 5 mwe . AEC Facili:ias License Application Record S/25/67.

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(5) Flcrida ?cwer Coro., Crystal Rive 'Jni: 4. (Mon:-

gomery, Tr. 354) 925 mwe. (AEC Facilines License Application Record, S/25/67, DRL:NLD/sc)

(6) Sacramento Municical U:ill:y District (Mon gomery,

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D. Again Applicant cannot sus:ain ::s Research and Developmen:

type of facili:y burden of proof in the face of :he Commission's findings and crders in recen: Pressurized Wa:ar Type Reactor dockets of which the' Commission will take official no: ice. (Tr. - 574)

(1 % ) For example, Docke: No. 50-247, Re Con. Edison Co. of New York, where Indian Poin: Station Uni: 2 was licensed, as shown by In:crvances' Eu..ai: 2, on Octobec '.4,1966, in the Initial Decision of the Atomic Safety and Licensing Socrd, dated Oc:ober 3,19G6, (Honorable 1

Samuel W. Icnsch, Chairman), :ho Board found a: Mimco pp. 6-7: '

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"For several years Con-Ed has been actively engaged with '

several other companies in the nuclear developman: field.

I. also owns and opera es a pressurized water reac:cr at Indian ?cin:, which nuclear facili:y has opera:ed successfully for more than four years.

I Cen-Ed has asse:s in excess of :hree billion dollars. I: i plans :o finance the cos: of construe:ica of :his proposed nuclear plan in the crdinary course of business through the internal genera: ion of funds and the issuance of stocks and bonds.

The proposed pressurized wa:er reactor facility is of the same general:ype as a number of others which are now in l cperation er under construction, including Connecticut Yankee a: Haddam, Sou:hern California Edison at San Cnofre, and :he Rochester Gas and Electic facili:y at Brookwood."

Said Indian ?cin: Uni: 2 decision also shows that this 673 mwe l 1

(S73,000 kw) Pressuriced Water Type Reac:ct was licensed for Cenral-

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-- S:a: ion Power Plan: use, and no: for research and developmen , where the only permissib!c sale c electric energy would be a by-product sale fcr the purpose of disposing of power developed as a by-produc: of the experime nt. Saic decision further finds at pp.15-17 of the mimacgraphed repor::

"A::he conclusion of :he hearing, Ccasolida:od Edison filed w:th :he Board, in accordance wi:h Sec:icn 21764(a) of the Commission's Rules of Prac:ica, a motica for expedited effec:-

iveness of the initial decision.

The record also shows tha: Con-Ed has an increasing demand for electricity and means mus be found to fulfill that demand.

Con-Ed has presen:ed evidence respecting the capacity of its existing generating plants and endeavers to provide addi-

icnal capaci:y, including the protracted S:orm King Mountain pumped water s:crage projec:. A failure to supply the demand would affec: the public interes: that buyers hate in their concer .

that electrici:y be delivered when they make a call for it. Con-Ed is obligated in the public service :c make delivery as the demand arises and as 1: may va y from :ime to :ime. *********

Con-Ed has asserted that as the fall and winter weather approaches, each day is impor: ant in :he construction schedule in order :o achieve as much cement work as possible before free::ing weather delays the work. These aspects of construc-

$:icn are reflec:ed in the capability of Con-Ed to supply the demands made upon it for elec:ricity. The Board concludes that substantial economic injury will occur if th:s initial decision is not made effective in accordance wi:h the Rules, and thus the motion is granted and the crder herein will so provide."

(2) Other recent decisions of the Commission or its Atomic Safety and Licensing Scard, finding that :he Pressuriced Water Type Reactor should be licensed for Central S$:!on ?cwer Plant use to mee: the public demand on the power companies in :he regular course of business, cf which the Commission will:ake official nc: ice, are:

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(3) Applic=t os,,i-c.cs that Cconee, as a nuclear station, is

$61/2 mi"*cn year checpor than coal, ehich ne=s a saving to Duke, on this basis of cor.pcison c. lone, of over ?260,000,000 for the life of de forty yer licenso requested. (Tr. 455).

(9) Widou; dorogating from the importance of any of the fore-going facts, it is cppe ent that Luke has failed to sustain its non-co=ercial bedon of proof for the pressuriced Water Type Reactor, pri-

=rily bec=se the precsrized Water Cype Reactor is to be used for the lege sec.le cente:1 station generation and scle of electric energy cc ercia"y in the regular corse of Duke's utility business, and not merely for de disposal of by-product energy produced incidentcl to the op.o.a 4 o . o , . .e ,a.. -cA, ~ ,,.4

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3. The Act does not autorize tho iscuance of a Research and Development license e. der Scetion IC4(b) of the Act for the "use" by Appliennt of the pressrized Wcter Type Recctor.

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o facility has been sufficiently developod to be of practical value for industrial or comercial purposes, the Comission may thereafter issue licensos for such type of facility pursuant to section 103."

(4) Section 104(b) of the Act does not authorize licenses for "the use" of Research and Development facilities. Instead it contem-plates that when the type of facility involved in Research and Develop-ment has been sufficiently developed to be of practical value for indus-trial or comercial purposes, "the use" of such type cf facility shall be licensy only under Section 103 of the Act.

(5) The words "to use" in Sections 101 and 103 cme into the Act by amendment at the same time, subsequent to 1954 (Sunra, pp. 3, 4).

(6) The Co=ission is therefore without jurisdiction to issue a license to Applicant "to use" the Oconee pressurised Water Type Reactors under Section 104(b) of the Act for forty years or any other period of tine, long or short, said jurisdiction being existent only under Section 103, after proper application has been filed and lawful findings made.

7. The Jurisdictional Theories of the Acclicant and the AEC Staff.

A. The theory that the "once-through steam generator" not employed in connection with previous pressurized Water Type Reactors and other novel itens proposed for Oconee are enough to convert this proceeding into a Research and Develop =cnt, experimont and a non-comercial project which =sy be licensed under Section 104(b) of the Act. (proposed Findin'gs of Fact and Conclusions of Law by the AEC Regulatory Staff, pars.18, 20,22(c)).

. g4 The answer to this theory is that the once-througn steam genera *wr and si=ilar itoms are not rolevant to the question whether de Pros-surized Water Typo of Reactor is a non-co=orcial experimontal facil-ity. In order to custain its burdon of proof on the controlling quos-tion of jurisdictional fact, Duke must first establish that tho Pros-suri cd Wator Type of Reactor is a Research and Development tvue of facility which does not have practical value for co=ercial use. Since Applicant h2s failed to sustain its burden of proof as to the, t ree of Reactor, the proposed novel features incidental to the particular fac i l'ty are irrelevant. (See Tr. pp. 557-558). y Y.creover, it should be noted that the Cc=ission has the sane power to review the health, safety, and national security features of the particular facil4 ties to be employed under both Sections 103(d) and 104(d) of the Act. But the Act does not authorize converting a Section 103 tree of utilisation facility into a Section 104(b) ty:e of facility, merely because there are some novel its:s involved in the particular plant design, as contrasted with the character of the t me of Reactor to be employed.

3. The. theory that the proposed Oconee reactors of the pres-surized water type are Reser2ch and Development reactors because they are larger than any ?.Ges now operating and their economic feasibi'4 ty requires the test of operating experience before their practical value can be demonstrated. (Applicantes Proposed Findings and Conclusions, pars. 17-18, et seq.)

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This theory may have been arguable before the trial of this proceeding. All the facts and law above su==arised show that it is not applicable here.

C. The theory that since Oconee cannot be licensed under Section 103 without amend =ent of Duke's application and without an affirmative finding b r the Cor:nission of practical value for the Pressurized Water Type of Reactor, ergo a license must be issued forthwith under Section 104(b), (Staff Proposed Findings and Con-clusions, par. 21) in order to enable Duke to meet its public util-ity obligations. (Applicant's Proposed Findings and Conclusions, pp. 12 and 13).

The short answer to this theory is that if Applicant has failed to sustain its burden of provin'g the jurisdictional fact prerequisite to a lawful license under Section 104(b), the Commission's and the Board's plain duty is to deny the Application as filed; and the responsib4'ity for filing a lawful Application for a lawful license under Section 103, whether by amendment or otherwise, with the statu-tory privilege of incorporation by reference, the reference of the practical value issue to the Commission at the outset, or whatnot, is wholly and solely Applicant's problen.

To avoid creation of a vast private monopoly of atomic power, f.he Congress, under Section 103 of the Act, gives the Ccmmission juris-diction to license the acquisition, ownership and use, either in whole or in part, separate and apart from the construction and operation of utilization facilities, the language of Section 103 being in the dis-junctive. (See Tr. 534; Tr. 536-537).

l

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j Under the Ator.ic 2ncrgy Act of 1954 as amended, the full rance of do antitrust hws of America apply to civ47'an nuclear power exploitation. (Act, Section 105).

ITaen a true co=e:-cial nuclear plant operation is to be licensed, special procedures and safegua:-ds are prescribed in Section 105 of the-Act to achieve careful se:-utiny of such application and potential operation in the light of such antitrust laws.

The obvious nood for such scrutiny is aircady with us today in

c. =ssive accumulation of nuclear pcwer electrical generation. Below is an entract from Interveners Exhibits 2 and 3 showing the curront total of Soiling Water Reactors already operable, under construction, at.elied for> or announced:

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El'c River Nuclea: Plant 22 (Rural Ccop. P.cr. Assf n. & .GC)

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(?acific C-as & Elec. Co.),

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..u Applicant, Ou':o ?cwcr Company, has not sustained its jurisdictional burden of proving .ast the ?:-essurized Water Type of*Reacto: vo be en-ployed by Duke in each cf de 2:-ee n.its of de proposed Oconee Nuclear Station is (1) a Research and Development utilization facility and (2) of c. type W.ich does not have practical value for co=.ercial purposes.

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Oho Con =ission is widout jurisdiction =dcr Section 104(b) of the Atc=ic Enertr Act of 1954, as amended, to grant to Duke Power Conpany Research s.nd Oevelopment licenses (including a construction per=it) n,~ c .. . . .,.u.c. , v.,.,,. . . , .,,v.,

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The application of Luke ?crer Cc 1.any for licenses (licenses for forty yers) = der the Atenic Energy Act of 1954, as amended, W.ich is specifically for Research and Developnent Licenses (including a con;truc-uien per-it), applied for eder Section 104(b) of the Act, "to construct, cen, use and operate- the n4 :ation fac ties he:-eina.e described as an integral part cf de nucle e generation plant to 'e located in .

Cconee Cocty, Scui Carci.na, and to be 'c.cwn as the Oconee Nucler

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Stntion", consistin of thrco ?:-essnri cd Water Typo Recctors and apptrtanent facm ties, is horeby danied, for lack of jurisdiction.

Respectfully s-imitted,

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Assistant Gencral Counsol Assistant Attorney General Duka ?caer Company The South Ccrclina Pubolic Servico Charlotte, North Carolina Ccrission

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