ML19319C360

Submits Addl Info Re Proceedings to Enforce Conditions Attached to OLs & CPs in Response to NRC 780221 Ltr

ML19319C360
Person / Time
Site:	Davis Besse, Perry
Issue date:	03/06/1978
From:	Corsi L CLEVELAND, OH
To:	Saltzman J Office of Nuclear Reactor Regulation
References
NUDOCS 8002130872
Download: ML19319C360 (4)

Text

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Mr. Jerome Salt e n, Chief -

Antitrust & Indemnity Group Nuclear Reactor Regulation

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Nuclear Power Plants --

Enforcement Proceedings Dear Mr. Saltzman This is in response to your letter of February 21, 1978, request-ing additional information with regard to the City's request for proceedings to enforce the conditions attached to the operating licenses and construction permits for the Davis-Besse and Perry Nuclear units.

1. The Transrission (wheeling) schedule of Cleveland Electric Illuminating Co. (CEI) was filed with the Federal Energy Regulatorf Comission (FERC),

January 27, 1978. The City requested a one (1) day suspension of the schedule.

It is the City's understanding that it could be receiving power inmediately under the schedule.

Governor Carey of New York State disapproved the recent PASIN allocations for preference pwer on February 3,1978 and remanded the matter to PASTE for further study. The Cit Governor Carey'y, and/or RIP-0, s decision. has received Therefore, the City innothe cocrunication from PASNY name of AMP-0, will file since a new formal application imediately. ,

1 However, in the interim pending approval of the formal aoplication, because the l City in the name of R F-0, has menoranda of understanding with Allegheny Cooperative, a present customer of PASNY, the City in the name of RP-0 could begin receiving the power imediately uoan approval of PASNY.

2. The only steps necessary to complete the transaction is to perfect a wheeling schedule with PENFTE and to update the AMP Cleveland agreement.

The City and AMP-0 are meeting with officials of PENELEC March 6,1978 to finalize the agreement in principle of June 1973 to Weel PASIN power.

The AMP-O - Cleveland agreenunt will be updated inrediately.

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3. The shortest period of time and the longest period of time is unhnewn since as was eplained in Request No.1 above, the City could receive power on an interim basis pursuant to the Allegheny-AMP-0 menoranda of understanding for any duration and is making application to PASNY to become a customer on its own.

The proposed contracts disapproud by Governor Carney were to expire June 30, 1985.

The City's contract would be with AMP-O as would PASNY's.

The shortest time for te*nHng such a contract is fifteen (15) days by the City. It is the City's intent to purchase the power continuously as long as it is available.

There is no price penalty to terminate the contract with AMP-0.

4. The flexibility of scheduling PASNY power is unknown. However, the City would anticipate to schedule the energy change on an hour-to-hour basis at a 0.71 load factor. But the City hopes the load factor would be at 1.0 thus negating hour-by-hour schedulkg. The purchase power the City now receives is scheduled on an hour-to-hour basis.

The price penalty to the City is the differential between the cost of PASNY power and the City's own oil-fired cocbustion turbines plus fixed wheeling charges.

5. In the past the City has identified several alternative power sources including Buckeye, Orville, Ohio and Richcond, Indiana. The City is currently negoHaHng with a number of power suppliers and hopes to have definite information shortly. Past efforts to purchase power were thworted by CEI to wheel power to the City. It was apparent to the City that it was foolish to make further attenpts to locate alternative power sources until the City obtained a wheeling schedule from CEI.

6. The City does not desire PASNY power for periods of time less than 12 nonths because the PASNY power under 12 months is a low load factor power and is, therefore, uneconomtcal to wheel over large distances. However, seasonal power for a period less than 12 ncnths is available from Buckeye and would be used because it is high load factor power and transmitted over shorter distances.

7. Yes, the City hopes to cocmence utilization of the wheelirg schedule filed by CEI as soon as negotiations with alternative suppliers are cocpleted.

. . , . , s For that reason, in intervening and protesting the filing before FERC, City requested the minima suspension period. The one-day suspension period was requested only to entitle the City to rate reftnds, should FERC determi.ne the rate to be unjust and unreasonable. The City does, in fact, hope to begin utiliMrig the rate schedule at the earliest possible date whether or not proceedings before NRC or FERC are completed. However, City does urge procpt action to elindnate the unlawful features of CEI's wheeling schedule. City believes the wheeling schedule is unlawful on its face.

Despite the anticoupetive features of CEI's wheeling schedule, City proposes to utilize it. City has no relistic alternative. h only alternative is, in the words of the Licensing Board (5NRC 249), " akin to delivering the

[ City) into the hands of [its] adversaries."

8. h City does not consider the filed service schedule to be an initial filing.

9. See answer to request tb. 7.

I am sorry that I cannot ncw provide nere detailed responses to the questions attached to your letter. It is sinply a function of the fact that until the rate schedule was filed, CEI's long history of anticocpetitive practices made it futile to negotiate for other power supplies. I hope to be able to provide a core cocplete response in the near future.

Ver,f truly yours, Icu:ts V. Corsi, Director Department of Public Utilities LVC:elt l

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