ML19318A689
| ML19318A689 | |
| Person / Time | |
|---|---|
| Site: | Grand Gulf  |
| Issue date: | 05/29/1980 |
| From: | Harold Denton Office of Nuclear Reactor Regulation |
| To: | Lutken D MISSISSIPPI POWER & LIGHT CO. |
| Shared Package | |
| ML19318A690 | List: |
| References | |
| NUDOCS 8006240035 | |
| Download: ML19318A689 (3) | |
Text
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Io, UNITED STATES p. * ',.m 3
NUCLEAR REGULATORY COMMISSION 4,)'
8 e7 WASHING TON, D. C. 20555
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v May 29, 1980 Mr. Donald C. Lutken President Mississippi Power & Light Company P.O. Box 1640 Jackson, Mississippi 39205 Re: Mississippi Power and Light Cc:npany, Grand Gulf Nuclear Station, U-its 1 and 2, NRC Dkt. Nos. 50-416A ind 50-417A
Dear Mr. Lutken:
By letter dated flay 29, 1979, the Municipal Energy Agency of Mississir 3
("MEAM") If requested the Nuclear Regulatory Commission ("NRC") to tak forcement action, pursuant to 10 CFR 52.202, against Mississippi Power ien-Light Company ("MP&L") in connection with antitrust license conditions cable to Grand Gulf Nuclear Station, Units 1 and 2 (" Grand Gulf").
ppl' ME ha:
alleged that MP&L has not complied with the Grand Gulf license conditi relating to:
(1) MP&L's obligation to offer an opportunity to partici; e in
's Grand Gulf (license condition #D4(a)); (2) MP&L's obligation to provic' transmission services (license condition #D5(a)); and (3) MP&L's obli e-+ain to sell power for resale (license condition #D6).
io Upon receipt of MEAM's request of May 29, 1979, the NRC informed MEAh its request was being treated under 10 CFR 52.206 of the Commission's r lations. 2f Prior to MEAM's request to the NRC, MEAM had inquired of i _
Department of Justice as to the status and interpretation of the same li ense conditions with regard to the same ft tual circumstances as were raise n
MEAM's 52.206 request to the NRC. 3]
Both the MEAM request to the NRC d its if The Municipal Energy Agency of Mississippi consists of the Mississi:
cities of Canton, Clarksdale. Durant, Greenwood, Itta Bena, Koscius Leland, and Yazoo City.
2/ Letter from Harold R. Denton, DNRR, to Robert C. McDiarmid, counse^
MEAM, dated June 11, 1979.
ar 3] Letter from Robert C. McDiarmid, counsel for MEAM, to Janet Urban, Antitrust Division of the U.S. Department of Justice, dated Septer 1978.
The Department of Justice has advised the NRC that it suppc 22, MEAM's request for enforcement.
Letter dated November 21, 1979, f:
Donald L. Flexner, Deputy Assistant Attorney General of Antitrust Division, to Harold Denton, DNRR.
S 0062 400M N
I o
, earlier inquiry to the Department of Justice included a considerable amount of factual material. MP&L has responded to MEAM's inquiry to the Department of Justice, 4/ and has also submitted relevant factual material to the NRC, both as part of its submission of antitrust information related to its operating license application for Grand Gulf 5/ and also in response to additional inquiries made by the NRC Staff. 67 The NRC also obtained other factual information from independent sources! such as the Federal Energy Regulatory Commission ("FERC").
As a result of our consideration of MEAM's request and the factual materials mentioned above, it appears that MP&L is not in compliance with antitrust license conditions 4, 5 and 6.
More specifically, we believe that:
(1) MP&L has violated and continues to violate Grand Gulf antitrust license condition 4(a) by refusing to offer the City of Clarks-dale, MEAM, or the other members of MEAM the opportunity to participate in Grand Gulf; (2) MP&L has violated and continues to violate Grand Gulf antitrust license condition 5(a) by not facilitating the transmission of Lafayette, Louisiana power from the MP&L-Gulf States Utilities interconnection near Felps, Louisiana, to the City of Clarksdale; and (3) MP&L has violated and continues to violate Grand Gulf antitrust license condition 6 by refusing to sell partial requirements power for resale except at incremental costs.
We are therefore issuing the enclosed Notice of Violation to MP&L and its co-licensee, Middle South Energy, Inc.
MEAM also has alleged that in connection with MP&L's refusal to transmit Lafayette power to Clarksdale, MP&L would not consider any power transmitted over the MP&L-GSU interconnection to be available for generation capacity credit or for reserve sharing obligations because the MP&L-GSU interconnection is only a single 500 kv line. 7/ The Staff believes that such a position by 4/ Letters from L. Peter Farkas, counsel for MP&L, to Janet R. Urban, Depart-ment of Justice, dated October 16, and November 17, 1978.
5] Letter from Norris L. Stampley, vice-president of MP&L, to Harold R.
Denton, DNRR, dated February 7, 1979.
6f Letter from Norris L. Stampley, vice-president of MP&L, to Harold R.
Denton, DNRR, dated April 12, 1979.
7/ MEAM Enforcement Request at 6.
. MP&L is inconsistent with Grand Gulf license conditions 2(a),(c),(d) and (f).
It appears, however, that this issue has been mooted by Article II of the October 2,1979 Settlement Agreement between MP&L and MEAM in FERC Docket Nos. ER78-583 and ER78-584, which states, in relevant part, that "Clarksdale...shall receive capacity credit under its interconnection agreement with MP&L for such power that is delivered to Clarksdale...by MP&L..."
Your written twenty-day response to the Notice of Violation and any further actions proposed by MP&L will be considered in determining whether further enforcement action, including civil penalties or orders, will be required to assure compliance.
Very truly yours,
/
A Harold R. Denton, Director Office of Nuclear Reactor Regulation
Enclosure:
R. C. McDiarmid, Esq.
Donald L. Flexner, Esq.
Troy B. Conner, Jr., Esq.
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