ML19310A609

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Discusses NRC Antitrust Review in Response to Re Possible Cajun Electric Power Cooperative,Inc Antitrust Violations W/Respect to Facility.Comments Will Be Considered When Util Applies for OL
ML19310A609
Person / Time
Site: River Bend Entergy icon.png
Issue date: 05/05/1980
From: Nicholson P
Office of Nuclear Reactor Regulation
To: Irving S
PUBLIC LAW UTILITIES GROUP
References
NUDOCS 8006200545
Download: ML19310A609 (2)


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133g Docket No. 50-458A Mr. Stephen M. Irving, Director Public Law Utilities Group One American Place Suite 1601 j

Baton Rouge, LA 70825 1

Dear Mr. Irving:

This Office has received your April 18 letter regarding possible antitrust problems raised by the proposed participation of Cajun Electric Power Cooperative, Inc. (Cajun), in River Bend Station, Unit 1.

The Office of the Exgcutive Legal Director of the Nuclear Regulatory Comnission, with whom this Office jointly conducts the antitrust review process, has contacted the Justice Department about your letter. The Justice Depart-ment has confirmed that it has received a copy of your letter.

As you may be aware the Nuclear Regulatory Comission (NRC) conducts two separate antitrust reviews, a construction pemit review and an operating license review, of applicants for nuclear power plant licenses. The construction permit review takes place prior to the issuance of a construc-tion permit for the plant. Upon receipt of antitrust information from the applicant, NRC sends the information to the Justice Department and requests its advice as to whether to hold an antitrust hearing.

In this specific case, the Justice Department recomended that a hearing would not be necessary if Gulf States Utilities Company (Gulf States) would agree to the inclosion of certain antitrust conditions in the construction pemi t.

Gulf Staus did so agree and on March 25, 1977, received a construction pemit. This officially teminated the construction pemit antitrust ruiew for Gulf States Utilities Company and Gulf States is not subject to additional antitrust review until it applies for an operating license.

Subsequently, Cajun applied to become an owner of River Bend Station, Unit 1 and submitted antiturst infomation. The Justice Department is currently reviewing this and other infomation and is expected to advise the NRC by May 8,1980, as to whether NRC should hold a hearing with respect to Cajun's participation.

The operating license review takes place prior to the issuance of an operating license for the plant. As part of this review the NRC must first detemine if circumstances have significantly changed since the 800620'0 5%E OFnce) suR~~c) out>.

.. h N%C FORM JIS (9-76) NRCM 0240 DU.S. GOVERNMENT PRINTING OFFICE: 1979 289 369

Mr. Stephen M. Irving -

?5FJ construction pemit was issued.

If such a finding is made, NRC then sends its findings and operating license antitrust infomation submitted by the applicant (s) to the Justice Department and requests advice about whether to hold an antitrust hearing.

Because the applicant, Gulf States, has not yet applied for an operating license, this review has yet to begin. When Gulf States does apply, we will consider your April 18, 1980 coments at that time.

In the meantime, your letter will be under consideration by the Department of Justice with respect to Cajun's participation.

If I may further help you, you may reach me at 301-492-8339.

Sincerely, i

s/

Phillip Nicholson Antitrust Economist Antitrust Section Utility Finance Branch Division of Engineering Office of Muclear Reactor Regulation l

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Distribution:

PDR LPDR Docket Files LPM - (Darl Hood)

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N2C FORM JIS (9 76) NRCM O240 DU.S. GOVERNMENT PRINTING OFFICE: 1979-289 369

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