ML19308D812

Submits Util Policies Re Emergency Bulb Power Exhanges, Reserve Coordination & Bulk Power Sales for Resale.Util Does Not Object to Policy Statements Being Part of AEC Licensing Action

ML19308D812
Person / Time
Site:	Crystal River
Issue date:	12/06/1971
From:	Rodgers J FLORIDA POWER CORP.
To:	Saunders J JUSTICE, DEPT. OF
Shared Package
ML19308D808	List: ML19308D807 ML19308D812 ML19317G582
References
NUDOCS 8003180752
Download: ML19308D812 (2)

Text

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December 6, 1971

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!* .. .y Mr. Joseph J. Saundors ,- , . . . .q

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Chief, Publie Counsel and .

Legislative Section Y7 f /Q,Q ,,

United States Departu.ent of Justice i.

Unchine. ton, D. C. 20:i30 $. /u.o;gy /s

• s . . . .. f w Re: I'lorida Power Corporation Crystal River Nuclear Generating Plant No. 3 AEC Docket No. 50-30?A Department of Justice File 60-415-38

Dear Mr. S:

unders:

With regard to the antitrust revicu of the abo ~ nuclcar ifcensing application being conducted by the Antitrust Divisien of the Department of Justico, we nre r.wse appreciative of the opportunity afforded us Wcduceday, Decernher 1,1971 te ucct with you and Messrs. Wallace h. P':and and Milton J.

Grussuan of the Antitrut.t Division. Florida Pc. tor Corporation (Applicant) wan repreacnted at t he s.:ceting by I;ernhard C. ?wehhoefer,1:.M. of Ua.shingten, D. C. , M r. iia r ry A. 1;ve r Lx , 111, an Assistant Counsel of I'lorida Power Corporation cod myscif.

Your staff has suggested that our installation and operation of the Crys tal River Unit. No. 3 nuclear generating unit has the potential of creat-ing a si tuation inconsistent with the antitrust laws. The areas of potential inconsistency would arise out of Florida Power Corporatica's ouncrship and oparation of the Crystal River Unit No. 3, coupled uith restrictive policies regarding: (1) e:r.crgency bulk power exchanges and coordination of reserves; (2) coordinating with other entitics planning fer generation, trant-aiscion and associated f acili tics; (3) exchange of power bctueen tuo or core entitics; and (4) bulk power sales for resale. To alleviate ycur staff's concern that any of Florida Power Corporat f on's bulk power policies may have the potential of creating a situation inconsistent wi th the antitrust laus, and solcly for the purpose of obviating the need for any antitrust hearing in the above-captioned proceeding, Applicant sets forth below its policies, regarding the above four expressed concerns, which it vill naintain during the licenso period of the Crystal River No. 3 nuclear generating unit.

3. A; plicant will -interconnect with and coordinate reserves by incans of the sale and exchange of emert acy bulk pouct vith any entity or entitics '.n its service area engaging in or proposing to

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!!r. 'Jonoph J. Saunders ,

December 6, 1971 l engage in electric hulk pouer supply on terms that will provide for Applicant.'s costs (including a reasonahic tr. tora) in ( ennection there-with and allow the other participant (s) full access to the benefits of reserve coordination.

2. Applicant vill purchase from or sell " bulk pewor" to any other entity or entitics in the aforesaid area cne:ic,in3 in or proposing to engage in the generation of electric power in bulk, at its costs (including'a reasonabic return) uhen such transactions would serve to reduce the over-all costs of neu hulk pouer :.upply for itself or the other participant or participants to the transaction. This refers specifically t.o the opportunit.y to coordinate in the planning of twu p,eneration, trans.ais.,f on and a:n.oeinted f acili ties.

3. Applicant will facili tate .;he e:: change of hulk pouer by t.ranstaission over its system bcLucen or among two or raore entities with which it is interconnected en terns i.tich vill fully co. pensate it for t.hc use of its system to the extent that subject arrange:rnes reasonably can be acco:x::odated f rom a functional and technical standpoint.

4. Applicant vill sell pouer in bulk to any ent.ity in the aforesaid area now engaging in or proposing to encar,c in th retail distribu-tion of cicetric pouer.

• 1hc implementation of. the forenoing policies and treinsactions ,

shall he c on:. i n te n t wi th the provi::f ons ei the Federt.1 pm.ar Act. Further, all rat es, charges or practices in connection thercuith vill be subject to the appreval of those regulatory cgencies having jurisdiction over then. Nothing in this Icttcr shall be construed to be a waiver by the Applicant of its right to contest whether or not a future fact.ual situation is inconsistent with any of the foregoing policies.

Ad a further showing of its intent to continue the above policies, the Applicant would not object to the inclusion of this letter and its staten.nts of policy being made a part of any licensing action forthcoming f rom the 1:ni ted States Atomic Energy Ce:w.ission specifically directed tcvard itr Crystal River Unit No. 3 nucicar generating plant ~ for which thc subject application is pending.

Sincerely yours,

1. J. T. Rodgers Assistant Viec president and

. Nuclear project Manager JTR:ge 9

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