ML19319C642
| ML19319C642 | |
| Person / Time | |
|---|---|
| Site: | Davis Besse, Perry  |
| Issue date: | 11/22/1974 |
| From: | Lessy R US ATOMIC ENERGY COMMISSION (AEC) |
| To: | Berger M, Charno S JUSTICE, DEPT. OF |
| References | |
| NUDOCS 8002191086 | |
| Download: ML19319C642 (10) | |
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NOV 21 1974 D 9?
O wwJ Steven :4. Charno, Esq.
ibivin G. Berger. Esq.
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Re: The Toledo Edison Corpany and The Clevaland q.
Electric Illuminating Company (Gavis-Gesse i.
Iluclear Power Station Uni: 1). The Cleveland i
Electric Illuminating Company, et al.
(Perry Tiuclear Psier P1 ant, Units 1 c.d 2)
Rocket.'40s. 50-346A. 50 _*40A and 50 441 A Genticmn:
Attacited please find a cocy of draft License Conditicas For Perry and Davis-Besse Nuclear Plant" dated !!ovecuer E2,1974 ("tae draft').
This draft incorporatos (1) suggestions made sur:aant to our joint meting uith counsel fcr applicants on Ncyr er 3,1]74, ar.d (ii) oc:mr mdifications pecscsed by Staff.
All sucn a.iditions are indicated on the draft by underscored language.
Inasmuch as our next meeting witn counsel for apnlicants is scileduled for 1.0') p.m. on Decercer 4,1974 at the Cepartrent of Justice, we would a;:preciate being in receipt of your cements to the draft r.o later than Nove:mer 23, 1974.
If this presents any problens, please advise so that we can make aporopriate cnanges in the meeting schedule.
Sincerely,
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Roy P. Lessy, Jr.
Counsel for AEC Regulatory S[f DISTRIBUTION: REG Central Fnes OGC Reading Fi:
Enclosure:
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' LICErlSE {0?iDITIOils FOR PERRY AtlD DAVIS-iESSE RUCLEAR-Pt.AtlT -_
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Company means y or any successor or assignee of this license and includes each present or future wholly-owned electric subsidiary and any successor to it(them).
" Applicable area" is that area within which Company could reasonably '
and feasibly exten? retail or wholesale on a re, gular basis as well as
'the area it is presently serving.
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" Reserves" means the difference between net entity capability and2 entity caximum load requirements (peak load and capability adjusted for firm 4
purchases and sales).
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" Economy energy" is energy produced and supplied frca a more economic source of one entity, substituted for that being produced or capable of being produced by a less economical source of another entity.
" Maintenance support" is capacity and energy as available from one entity, and as needed by another entity to replace capacity and energy made unavail-able due to coordinated scheduled maintenance of generating equipment.
" Emergency support" is capacity and energy as available from one entity, 4
and as needed by another entity to replace capacity and energy made unavail-
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~ able'due to forced outages of generating facilities.
4 E nsert. applicant's corporate identity or identities.
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" Firm' Powe " is that intended to be available at all times during the period covered by a comnitment, even under adverse conditions.
I "Non-firm Power" is that supplied or available under an arrangement which 'does not have the availability feature of firm power.
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" Bulk power" refers to electric power which is,made available to [ Company or] a receiving entity for resale by the'[ Company or] entity.
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" Participation power" refers to bulk power generated by a particular generating unit,.to which unit.an entity has a contractual right to a portion of the output, and/or the ownership, thereof.
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" Unit power" refrrs to participation power without an ownership interest.
" Bulk power transactions" refers to specific arrangements for the purchase, sale, exchange and/or transmission of bulk power.
" Entity" means a person, private or public corporation, governmental agency or authority, municipality, rural electric cooperative, joint stock j
association, business trust, or lawful issociation of the foregoing, owning, 1
~ operating or proposing to own or operate facilities for the generation, transmission or distribution of electricity, provided that, except for municiplaities, governmental agencies or authorities or rural elect'ric cooperatives, entity is restricted to.those which are or will be 4
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public util ties under the laws cf the state in which the entity. transacts
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or will transaci business or under the Feqeral Power Act, and are or will I
be providing electric service under a contract or rate schedule on file with and subject to the regulation of a state regulatory commission or the Federal Power Commission.
a General Understanding Company recognizes that it is generally in the public interest for electric utilities to interconnect, coordinate,for reliability and economy and engage in bulk power transactions in order to increase interconnected system relia-bility and economy and ~ engage in bulk power transactions in order to increase interconnected system reliability and reduce the costs of electric power.
"Bul power transactions" should be such as to provide a [ combined] net benefit to th parties, taken tocether, and compensation should be such that no party would F
have a net detriment.
In the determination of detriment the possible l'oss of revenues due to the loss of sales to customers as a result of such trans-actions will not be considered. Company or any other entity should not be obligated to, enter into any arrangement that would jeopardize its ability to maintain reliable service. Company and other entities are to be ccmpensatec in accordance with effective acreements and rate schedules, for all facilities required and/or services rendered. The rate schedules may recocnize the extent to which mutuality of such services is available to each entity.' Rate schedules, as required to provide for the facilities and arrangements needed to implement the license conditions herein, including provisions as are rea-sonably necessary to protect the adequacy and reliability of the electrical system, are to be submitted by Company to the regulatory agency having juris-diction thereof. Company agrees to include a provision in new rate sub-missi~ons associated with these license conditions, so that if the rates e
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-become effective prior to the resolution of the contested-issues
-(associated with the rate schedules) and are thereafter reduced in accordance with the regulatory proceedings and findings, appropriate refunds (including interest) would be made to retroactively reflect the decrease.
It is recognized that the following conditions are to be implemented in a mani1er consistent with 'the provisions of the Federal Power Ac't to the extent aoolicable [and any applicable' State or local law] and all rates, charges or practices in connection therewith are to be subject to the approval of regulatory agencies having jurisdiction over them.
j In implementing the conditions which follow, Company will act in accordance with.the foregoing principles.
p Interconnection Company shall. interconnect, cursuant to aareement, with any entity in the applicable area which requests such interconnection and shall ucon request:
(a) purchase and sell reserve capacity, (b)_ provide emergency support,
('c)" coordinate maintenance schedules and provide maintanance support,.
(d) exchange economy energy, (e) purchase and sell firm and non-firm power, (f) deliver participation power from sources owned or operated by Company and (g) provide transmission services for the above.
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- Compan).and each entity 'that is a party to an interconn'ection ' agreement' shail provide to the other the above se'rvices, if.and when 'such services are.available from its own generation and transmission facilities and from generation and transmission facilities of others, to the extent it can'do so without impairing service to its customers including other N
electric systems to which it has firm commitments, and insofar as Comoany and entity provide such' services to any other electric entity. The cost
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of installing each interconnection and the cost of maintenance thereof shall be allocated as determined or acceoted and acoroved by the accro-priate regulatory authorities.
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Interconnections cursuant to this license wi11 not be limited to lower voltages when higher voltaces are requested and are available.
Interconnection agreements will not embody orovisions which impose t
limitations uoan the use or. resale of cacacity and enercy sold or
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exchanced oursuant to the acreement except as may be necessary to protect the reliability of Comoany's system.
Interconnection agreements will not prohibit the parties from entering into other interconnectior.s or coordination acreements, but may include appropriate provisions to ensure that (1) Comoany receives adecuate notice of such additional interconnection or coordination, and (2) the
~paktieswilljointlyconsiderandagreeuoansuchmeasures,ifany,as-4 are reasonably necessary for safety or to orotect the reliability of Comoany's system.
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, Reserve Resoonsibility Company and other entities shall enter into a reserve sharing arrangement o
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which shall jointly establish the minimum reserve requirement to be installed and/or provided under contractual arrangements as necessary to maintain, in total, a reserve margin sufficient to provide adequate.
reliability of power supply to the interconnected systems of the parties.
The parties may. jointly establish criteria for apoortioning such minimum reserves among themselves, or if no agreement is reached on the criteria for apportionment of reserves, the minimum reserve requirement "shall be calculated as a percentage (to be identical for each party) of the pro-jected annual peak load, adjusted for purchases and sales of firm power, including any firm cower which may be made available in partial fulfillment of any entity's system recuirements.
If the reserve recuirements of the Company are increased over the amount the Comoany would be recuired to maintain without such interconnection, then the other entity (ies) shall be required to carry or orovide for its (their) reserves the full amount in kilowatts of such increase.
The parties to such a reserve sharing arrangement shall provide such amounts of spinning and operating reserve capacity as may be adequate to avoid the imposition of unreasonable demands on the others in meeting the normal contingencies of operating their systems.
However, in no circumstances shall any party's spinning or operating reserve requirement exceed the mi nimum reserve requirement as established above.
Access to Muclear Units Company shall offer, to entities in the acclicable area which have heretofore made a timely written request therefore, an opportunity to participate in
[the Company's allocated share in] Davis-Besse No.1, Beaver Valley No. 2, and j
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Perry Nos.1 and 2.
Companyshallalsooffertoentities[inthe applicable area an opportunity to participate [in Company's allocated share]in any other nuclear generating unit (s) which Company may_
construct, own and operate severally or jointly, during the term of the instant l'icense or any extension or renewal thereof, to any entity (ies) in the applicable area..Such participation shall be in reasonable amounts to those entities that have given timely notice of' serious intent to participate in rescanse to Company's offe'r. The participation may be either by an ownership interest, by a contractual prepurchase of power arrangement, or by a unit power purchase as requested by the resconding entity.
In the event that during the term of the instant license, or any extension or renewal thereof, Company participates in the ownership
't of or rights to a portion of the' output of one or more other nuclear generating units which Company does not construct, or operate, Company shall offer participation in their share of such nuclear units to any entities in the applicable area timely requesting such part'icipation, on terms no less favorable ~ than the terms of Company participation therein.
Any entity _ heretofore making a request for participation in the Davis-B, esse No. I and Perry Nos. 1 and 2 nuclear generating units must enter into a firm [ agreement] ccmmitment to participate in one or more of those unit (s),-
prior to
, 1975 for Davis-Besse No. 1 and prior to 1975 for Beaver Valley No. 2 and Perry Mos. I and 2.
Any entity making a timely request for participation in any future nuclear generating unit pursuant to this. condition shall enter into [such] an agreement as scon~as reasonable [within' one] after [ year of] its written [ request] commitment
[for participation].
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= Transmission Services 4
Company shall transmit bulk power over its transmission facilities to, from, between or among entities with which it is interconnected and between any such entities engaging in bulk power supply between whose facilities Company's transmission lines and the transmission lines of others would form a continuous electrical path, provided that (1) per-mission to utilize such other transmission lines has been obtained, and (2) the arrangements reasonably can be accommodated from a technical standpoint. Any entity (ies) requesting such transmission arrangements are obligated to give reasonable advance notice of its (their) schedule and requirements of power to be transmitted over Company's facilities.
Company shall include in its planning and construction program sufficient transmission capacity as required fcr the transmission services requested i
provided that the entity (fes) give Company sufficient advance notice as may be necessary to accommodate its (their) requirements from a technical standpoint. Company shall not be required to construct transmission facilities w'hich will be of no demonstrable present or future benefit to Company.
Power for Resale Com'pany shall not refuse to sell full or cartial reauirements power for resale to any requesting entity in the applicable area now engaging or [now] proposing to engage in the transmission and/or distribution and sale of electric power in accordance with Company's filed and effective rate schedules, which shall not restrict use or resale of such power. Company shall not be required to make any such sale if it
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does not have available sufficient generation or transraission to provid~e the requested service or if sale would imp' air -its ability to render adequate and reliable service.
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