ML19317E274
| ML19317E274 | |
| Person / Time | |
|---|---|
| Site: | Oconee, Mcguire, McGuire  |
| Issue date: | 05/24/1974 |
| From: | Farmakides J, Hall G, Tubridy J Atomic Safety and Licensing Board Panel |
| To: | US ATOMIC ENERGY COMMISSION (AEC) |
| Shared Package | |
| ML19317E244 | List: |
| References | |
| NUDOCS 7912170504 | |
| Download: ML19317E274 (17) | |
Text
fit 7a APPENDIX A
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UNITED STATES OF AMERICA $
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DUKE PO'.lER COMPAMY
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Docket Hos. 50-269A, 50-270A,
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50-287A, 50-369A, (Oconee Units 1, 2 6 3
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50-370A McGuire Units 1 & 2)
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_ ORDER ON JOINT MOTION OF T'!E REGULATORY STAFF OF THE ATOMIC E'1ERGY CODlISSICM lND THE DEPART-NENT OF JUSTICE TO PLACE CONDITIONS ON OCOMEE
' A"D McGUIRE LICENSES 1/
By Joint Motion dated May 13, 1974 with attachcents, the Deparecent of Justice and the Atocd.c Energy Cor=aission Regulatory Staff requested this Board to" direct that all 2/
licenses for the Oconee 'and McGuire nuclear power plants l
be a= ended to include as conditions certain coc=itments made by Applicant, Duke Power Company, in its " State =ent of Coc= tit =ents" attached hereto.
By these proposed.
l license conditions Applicant agrees "to enter into various types of transactions and activities with electric power entities in the Piedcont Carolinas.
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At tachcents con:;ist of letter deted April 26, 1974, frori Tliomas E. Kauper to lloward K. Shaper; letter dat.ed April 26, 1974, from William M. Grigg to Thomas E. Kauper with "Statecent of Coc.ltcents" attached thereto.
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" Licenses" refers to both construction per=its and g
operating licenses.
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-2 The Joint Motion sets out the types of transactions and activities involved and the reasons why both the Department of Justice and the Atomic Energy Commission Regulatory Staff believe the public interest would be served by conditioning to the Oconee and McGuire licenses at this time.
By response dated May 20, 1974, Applicant states that it has no objection to the Joint Motion, and additionally requests that:
(a) various actions be 2
taken in the Catawba proceeding; (b) the Board act with respect to the status of the Department of Justice and the Atomic Energy Commission Regulatory Staff in any further proceedings (The Board defers ruling on this request at this time) ; (c) the Board " acknowledge" the
. withdrawal of the Department of Justice advice letters for the Oconee, McGuire and Catawba units.
In view of the statement and position of the Department of Justice 2/
Applicant's response, however, is captioned and filed only in the Oconee-McGuire consolidated proceeding and is so considered in view of the Joint Motion to which Applicant's response relates.
. on this last point made to the Board at the Catawba Pre-hearing Conference on May 13, 1974, this Beard considers that said advice letters as to Oconee-McGuire have beett further supplemented in accordance with the commitments made in letters set forth in footnote #1, above.
After careful review of the Joint Motion and the attachments thereto, all the related pleadings and record to date in this proceeding, the Board finds that the pro-posed conditions contained in the attached Applicant's
" Statement of Commitments" were made to resolve the differences as between the Department of Justice, the AEC Regulatory Staff, and the Applicant and are a reason-able settlement of said differences within the public interest.
Accordingly, the Board grants said Joint Motion and hereby directs that the commitments attached 1
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. to this Order be made conditions to all permits and licenses issued or to be issued by the Atomic Energy Commission with respect to the Oconee and McGuire nuclear reactors.
ATOMIC SAFETY AND LICENSING BOARD
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.< 1 du s eph' F. Tub ridy, Memberj
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/Ge6rge R< liall, Member
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J B. Farmakides, Chairman Issued at Bethesda, Maryland, this 24th day of May 1974.
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ATTACl!!1ENT TO LETTER DATED APRIL 26, 1974 $
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FROM WILLIAM II. GRIGG TO T!!OMAS E.
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STATEMENT Or COMMITMENTS it. : ;,
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Appli' cant makes the commitments contained herein, recognizing that bulk power supply arrangements between neighboring entities normally tend to serve the public interest.
In addition, where there are net benefits to all participants, such arrangements also serve the best interests of each of the participants.
Among the benefits of such transactions are increased electric system reliability, a reduction in the cost of electric power, and minimization of the environmental effects of the production and sale of electricity.
Nny particular bulk power supply transaction may afford greater benefits to one participant than to another.
The benefits realized by a small system may be proportionately greater than those realized by a larger system.
The relative benefits to be derived by the parties from a proposed trans-action, however, should not be controlling upon a decision with respect to the desirability of participating in the transaction.
Accordingly, Applicant will enter into proposed bulk power transactions of the types hereinafter described which, on balance, provide net benefits to Applicant.
There are net benefits in a transaction if Applicant recovers the cost of the transaction (as defined in 11(d) hereof) and thenais no demonstrable net detriment to Applicant arising from that transaction.
1.
As used herein:
(a)
" Bulk Pcwer" means electric power and any attendant energy, supplied or made available at trancmission or sub-transmission voltage by one electric sys tem to another.
(b)
" Neighboring Entity" means a private or public corporation, a governmental agency or authority, a municipality, a cooperative, or a lawful associa-tion of any of the foregoing owning or operating, or proposing to own or operate, facilities for the generation and transmission of electricity which meets each of the followiag criteria:
(1) its existing or proposed f acilities are economically and technically feasible of interconnection with those of the Applicant and (2) with the exception of municipalities, cooperatives, governmental agencies or authorities, and associations,it is, or upon commencement of opera-tions will be, a public utility and subject to regula-tion with respect to rates and service under the laws of North Carolina or South Carolina or under the Federal Power Act; provided, however, that as to associations, each member of such association is either a public utility as discussed in this clause (2) or a municipality, a cooperative or a govern-mental agency or authority.
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(c)
Where the phrase " neighboring entity" is intended to include entities engaging or proposing to engage only in the distribution of electricity, this is indicated by adding the phrase " including distribution systems."
(d)
" Cost" means any appropriate operating and maintenance expenses, together with all other costs, including a reasonable return on Applicant's invest,
ment, which are reasonably allocable to a transaction.
However, no value shall be included for loss of revenues due to the loss of any wholesale or retail customer as a result of any transaction hercafter described.
2.
(a)
Applicant will interconnect and coordinate re-serves by means of the sale and exc.:ange of emergency and scheduled maintenance bulk power with any
, neighboring entity (ies), when there are net benefits i
to each party, on terms that will provide for all of Applicant's properly assignable costs as may be determined by the Federal Power Commission and con-sistent with such cost assignment will allow the other party the fullest possible benefits of such coordination.
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(b)
Emcrgency scrvice and/or scheduled maintenance service to be provided by each party will be furnished to the fullest exten't available from the supplying party and desired by the. party in need.
Applicant and each party will provide to the other emergency service and/or scheduled maintenance service if and when available from its own generation and, in accordance with recognized industry practice, from generation of others to the extent it can do so without impairing service to its customers, including other electric systems to whom it has firm commit-ments.
(c)
Each party to a reserve coordination arrange-ment will establish its own reserve criteria, bur in no event shall the minimum installed reserve on each system be less than 15%, calculated as a percentage of estimated peak load responsibility.
Either party, if it has, or has firmly planned, installed reserves in excess of the amount called for by its own reserve criterion, will offer any such' excess as may in fact be available at the time for which it is sought and for such e
period as the selling party shall determine for purchase in accordance with reasonable industry practice by the other party to meet such other party's own reserve require-l ment.
The parties will provide such amounts o'f spinning re-l serve as may be adequate' to avoid the imposition of unreason-able demands on the other party (ies) in meeting the
o normal contingencies of operating its (their) sys tem (s ).
Ilowever, in no circumstances shall such spinning reserve requirement exceed the installed reserve requiremont.
(d)
Interconnections will not be limited to low voltages when higher voltages are available from Applicant's installed facilities in the area where interconnection is desired and when the proposed arrangement is found to be technically and economically feasible.
(e)
Interconnection and reserve coordination agreements will not embody provisions which impose limitations upon the use or resale of power and energy sold or exchanged pursuant to the agreement.
Further, such arrangements will not prohibit the participants fro?. 2ntering into other interconnection and coordination arrangements, but may include appropriate provisions to assure that (i) Applicant receives adequate notice of such additional inter-connection or coordination, (ii) the parties will jointly consider and agree upon such measures, if
. any, as are reasonably necessary to protect the relia-bility of the interconnected systems and to prevent undue burdens from being imposed on any system, and b
(iii)
Applicant will be fully compensated for its costs.
Reasonable industry practice as developed in the area from time to time will satisfy this provision.
3.
Applicant currently has on file, and may hereafter file, with the Federal Power Commission contracts with neighboring entity (ies) providing for the sale and exchange of short-term power and energy, limited term power and energy, economy energy, non-displace-ment energy, and emergency capacity and energy.
Applicant will enter into contracts providing for the same or for like transactions with any neighboring entity on terms which enable Applicant to recover the full costs allocable to such transaction.
4.
Applicant currently sells capacity and energy in bulk on a full requirements basis to several entities
, engaging in the distribution of electric power at re-tail.
In addition, Applicant supplies electricity directly to ultimate users in a number of municipalities.
Should any such entity (ies) or municipality (ies) desire to become a neighboring entity as defined in Paragraph 1(b) hereof (either alone or through combination with others), Applicant will assist in f acilitating the G
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necessary transition through the sale of partial requirements firm power and energy to the extent that, except for such transition., Applicant would otherwise be supplying firm power and energy.
The provision of such firm partial requirements service shall be under such rates, terms and conditions as shall be found by the Federal Power Commission to provide for the recovery of Applicant's costs.
Applicant will sell capacity and energy in bulk on a full requirements basis to any municipality currently served by Applicant when such municipality lawfully engages in the distribution of electric power at retail.
5.
(a)
Applicant will facilitiate the exchange of electric power in bulk in wholesale transactions over its trans-mission facilities (1) between or among two or more neighboring entities including distribution systems with which it is interconnected or may be interconnected in the future, and (2) between any such entity (ies) and any other electric system engaging An bulk power supply between whose facilities Applicant's transmission lines and other transmission lines would form a continuous electric path, provided that permission to utilize such other transmission lines has been obtained.
Such transaction shall be undertaken provided that the
8-particular transaction reasonably can be accom-modated by Applicant's transmission system from a j
functional and technical standpoint and does not constitute the whccling of power to a retail customer.
Such transmission shall be on terms that fully compensate Applicant for its cost.
Any entity (ies) requesting such transmission arrangements shall give reasonable notice of its (theid schedule and requi re-ments.
(b)
Applicant will include in its planning and construction program sufficient transmission capacity as required for the transactions referred to in sub-paragraph (a) of this paragraph, provided that (1) the neighboring a".ti ty (ics) gives Applicant suf fi-cient advance notice as may be necessary reasonably to accommodate its (their) requirements from a functional and technical standpoint and (2) that such entity (ies) fully compensates Applicant for its cost.
In carrying out this subparagraph (b), however, Applicant shall not be required to construct or add transmission facilities which (a) will be of no '
, demonstrable present or future benefit to Applicant, or (b) which could be constructed by the requesting entity (ics) without duplicating any portion of.
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Applicant's existing transmission lines, or (c) which would jeopardi c Applicant's at'lity to finance or construct on reasonable terms facilities needed f
to meet its own anticipated system requirements.
Where regulatory or environmental approvals are required for the construction or addition of trans-mission facilities, needed for the transactions referred to in subparagraph (a) of this paragraph, it shall be the responsibility of the entity (ies) seeking the transaction to participate in obtaining such approvals, including sharing in the cost thereof.
6.
To increase the possibility of achieving greater reliability and economy of electric generation and transmission facilities, Applicant will discuss load projections and system development plans with any neighboring entity (ies).
7.
When Applicant's plans for future nuclear generating units (for which application will hereaf ter be made to the Atomic Energy Commission) have reached the stage of serious planning, but before firm decisions have been made as to the size and desired completion
.date of the proposed nucicar units, Applicant will notify all neighboring entities including distribution systems with peak loads smaller than Applicant's
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that Applicant plans to construct such nuclear units.
Neither the timing nor the information provided need be such as to jeopardize obtaining the required site at the lowest possible cost.
8.
The foregoing commitments shall be implemented in a manner consistent with the provisions of the Federal Power Act and all other lawful local, state and Federal regulation and authority.
Nothing in these commitments is intended to determine in advance the resolution of issues which are croperly raised at the Federal Power Commission concerning such commitments, including allocation of costs or the rates to be charged.
Applicant will negotiate (including the execution of a contingent statement
- of intent) with respect to the foregoing commit-monts with any neighboring entity including dis-tribution systems where applicable engaging in or proposing to engage in bulk power supply trans-actions, but Applicant shall not be required to enter into any final arrangement prior to resolu-tion of any substantial questions as to the law-ful authority of an entity to engage in
the transactions.
In addition, Applicant shall not be obligated to enter into a given bulk power supply transaction if:
(1) to do so would violate, or incapacitate it from performing, any exis'ing lawful contracts it has with a third party; (2) there is contemporancously available to it a competing or alternative arrangement which affords it greater benefits which would be mutually exclusive of such arrangement; (3) to do so would adversely affect its system operations or the reliability of power supply to its customers, or (4) if to do so would jeopardize Applicant's ability to finance or construct on reasonable terms facilities needed to meet its own anticipated system requirements.
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UNITED STATES OF AMERICA NUCLEAR REGULATORY COMMISSION Duke Power Company
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Dkt. Nos. 50-269A, 50-270A, (Oconee Units 1, 2 and 3
)
50-287A, 50-369A, McGuire Units 1 and 2)
)
and 50-370A CERTIFICATE OF SERVICE I hereby certify that copies of JOINT MOTION OF APPLICANT AND MUNICIPAL INTERVENORS TO ACCEPT SETTLEMENT AND TERMINATE PROCEEDING in the.above-captioned matter were served on the following by depos!.t in the United States mail, first class or air mail, on March 31, 1975.
Dr. Kenneth G. Elzinga Troy B.
Connor, Esquire Department of Economics Connor & Knotts University of Virginia 1747 Pennsylvania Ave., N.W.
Charlotte, Virginia 22901 Washington, D.
C.
20006 Joseph F. Tubridy, Esquire Joseph Rutberg, Esquire 4100 Cathedral Avenue, N.W.
Benjamin H. Vogler, Esquire Washington, D.
C.
20016 Antitrust Counsel for AEC Regulatory Staff John B.
Farmakides, Esquire Nuclear Regulatory Commission Atomic Safety and Licensing Washington, D.
C.
20545 Board Panel Nuclear Regulatory Commission Mr. Frank W. Karas, Chief Public Proceedings Branch Atomic Safety and Licensing Office of the Secretary of Board Panel the Commission Nuclear Regulatory Commission Nuclear Regulatory Commission Washington, D.
C.
20545 Washington, D.
C.
20545 Abraham Braitman, Esquire Joseph Saunders, Esquire Special Assistant for Antitrust Division Antitrust Matters Department of Justice Office of Antitrust and Washington, D. C.
20530 Indemnity Nuclear Regulatory Commission J. O. Tally, Jr., Esquire Washington, D, C.
20545 P. O. Drawer 1660 Fayetteville, N.
C.
28302
. David F. Stover, Esquire David A. Leckie, Esquire Tally & Tally Antitrust Public Counsel Section 1300 Connecticut Ave., N.W.
U. S. Department of Justice Washington, D.
C.
20036 P. O. Box 7513 Washington, D.
C.
20044 Wald, Harkrader & Ross By:
Attorneys for Duke Power Company 1320 Nineteenth Street, N.W.
Washington, D.
C.
20036 y
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