ML19319D657

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Forwards Util Commitments to Be Incorporated in Facility License as Antitrust Conditions
ML19319D657
Person / Time
Site: Crystal River Duke Energy icon.png
Issue date: 01/02/1974
From: Oleary J
US ATOMIC ENERGY COMMISSION (AEC)
To: Bauser E
CONGRESS (JOINT & ROTATING COMMITTEES, ETC.)
References
NUDOCS 8003180691
Download: ML19319D657 (4)


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Docket File <

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JF0' Leary EGCase Docket flo. 50-302A JRutberg, 0GC ABraitman JAn 2 1974 OAI File OAI Reading B. Buckley, L.

L. Reading fir. Edward J. Bauser Executive Director Joint Connittee on Atomic Energy Congress of the United States Ucar Hr. Bauser:

In connection with the application of the Florida Power Corporation for an operating license for Crystal River Unit 3, the Attorney General recomxnded tnat -an antitrust hearing would not be required if certain comitrents code by the applicant were included as con-ditions in any license issued by the Concission.

Concitions esodying the above-referenced comiteents have been accepted by the applicant and will be incorporated in the license for the subject facility.

In order to clarify the intent of some of these coca::itments, we have added certain explanatory statetents. The explanatory statements will be included with the comitments as conditions to the license, if issued. A copy of the license conditions and explanatory statements is enclosed for your information.

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John F. O' Leary Director of Licensing

Enclosure:

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ANTITRUST CONDITIONS FOR FLORIDA POWER CORPORATION, CRYSTAL RIVER HO. 3 Applicant will interconnect with and coordinate reserves by means o the sale and exchange of emergency bulk power with any entity or entitie 1.

in its service area

  • engaging in or proposing to engage in electric bulk power supply on terms that will provide for Applicant's costs (includi a reasonable return) in connection therewith and allow the other parti-cipant(s) full access to the benefits of reserve coordination.

-Explantory Notes _:**

Interconnections will not be limited to low voltages when higher f

voltages are available from Applicant's installed facilities in a.

the area where interconnection is desired, when the proposed arrangement is found to be technically and economically feasible.

Emergency service agreements will not be limited to a fixed amount, but emergency service provided under such agreements will b.

be furnished to the fullest extent available and desired where such supply does not impair service to the supplier's customers.

An example of the type of reserve sharing arrangement available to any participant and which would provide " full access to the c.

benefits of reserve coordination" would be one in which the following conditions would obtain:

(1) The Applicant and each participant (s) shall provide to the other emergency power if and when 'available frum its own generation, or through its transmission from the generation of others to the extent it can do so without disrupting service to its own customers.

(2) The participant (s) to the reserve sharing arrangement shall, jointly with Applicant, establish from time to time th in total an adequate reliability of power supply on the interconnected The reserve responsibility system of Applicant and participant (s).

  • The use of the term " service area" in no way indicates an assignmentI or allocation of wholesale market areas.

indication of an area within the State of Florida where Applicant provides some class of electric service.

    • In order to clarify the commitments, certain explanatory notes have been added where necessary.

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thus determined shall be calculated as a percentage of peak load.

No participant (s) to the interconnection shall be required to maintain more than such percentage as a percentage of its peak load; provided that if the reserve requirements of Applicant are increased over and above the amount Applicant would be required to maintain without such interconnection then the other parti-cipant(s) shall be required to carry or provide for as its reserve responsibility the full amount in kilowatts of such increase.

Under no circumstances will minimum spinning or operating reserve requirements exceed the installed reserve requirement.

d.

Interconnection and coordination agreements will satisfy this condition if they do not embody restrictive provisions pertaining to inter-system coordination.

Industry practice as developed in this area from time to time will satisfy this condition if it is non-restrictive.

2.

Applicant will purchase from or sell " bulk power" to any other entity or entities in the aforesaid area engaging in or proposing to engage in the generation of electric power in bulk, at its cost (including a reason-able return) when such transactions would serve to reduce the overall costs of new bulk power supply for itself or the other participant or participants to the transaction.

This refers specifically to the opportunity to coordi-nate in the planning of new generation, transmission and associated faciliti es.

Explanatory Notes:

a.

It is not to be considered that this condition requires Applicant to purchase or sell bulk power if it finds such purchase or sale unfeasible or its costs in connection with such purchase or sale would exceed its benefits the-efrom.

b.

If Applicant engages in roordinated development of its bulk power supply system with that cf any other bulk power supply system, by selling unit power at the cost of its new power supply, or engages in joint ventures with the same result, Applicant shall not refuse proportional participation on a comparable basis from the same unit to any other entity in its service area (see Commitment 1, supra) engaging in or proposing to engage in bulk power supply to the extent it is technically feasible to provide such unit power from the unit or units in question.

3.

Applicant will facilitate the exchange of bulk power by transmission over its system between or among two or more entities with which it is interconnected on terms which will fully compensate it for the use of its system to the extent that subject arrangements reasonably can be accommodated from a functional and technical standpoint.

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Explanatory Notes:

This condition applies to entities with which applicant mgy be a.

interconnected in the future as well as those to which it is now interconr,ected.

b.

Applicant is obligated under this condition to transmit bulk power for other entities on the terms stated above, and to include in its planning and construction programs sufficient transmission capacity as required therefor, provided that such other entities give Applicant sufficient advance notice as may be required to accommodate the arrangement from a functional and technical standpoint and that the other entities will be obligated to compensate Applicant fully for the use of its system.

4.

Appli cant will sell power in bulk to any entity in the aforesaid area now engaging in or proposing to engage in the retail distribution of electric power.

5.

It is recognized that the foregoing conditions are to be implemented in a manner consistent with the provisions of the Federal Power Act and all rates, charges or practices in connection therewith are to be subject to the approval of regulatory agencies having jurisdiction over them.

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