ML19319D660

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Forwards AEC Explanatory Statements & Util Commitments to Be Incorporated in Facility License as Antitrust Conditions
ML19319D660
Person / Time
Site: Crystal River Duke Energy icon.png
Issue date: 12/28/1973
From: Oleary J
US ATOMIC ENERGY COMMISSION (AEC)
To: Rodgers J
FLORIDA POWER CORP.
References
NUDOCS 8003180694
Download: ML19319D660 (4)


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AEC PDR Local PDR JF0' Leary Docket i:o. bJ-3G2A EGCase DR Reading JRutberg DEC 2 81973 ABraitman 0AI File SKari, L Florida Power Corporation BBuckley, L.

. Attn: br. J. T. Rodgers Assistant Vice President L Reading P. U. Lox 14042 St. Petersburg, Florida-33733 Gentisuen:

By letter datw february 11, 1972 the Attorney General rendered antitrust advice to the Cem.ission pursuant to section 105c of the Atanic Energy Act of IM, as maanded. The Attorney Generel's aevice included a recoseendation tnat an antitrust hearing uculd not be required if the PAicy cou:ituents concaince in f1crica Iv,mr Corporation's letter to the Lepartcent of Justice cated becerar u, l'41 are included as conditions in tre operating license for Crystal River Unit 3.

In order to clarify the intent of sose of these comitments, we have added certain explanatory statecents. The explanatory sate-ments will be included with the comittents as conditions to the license, if issued. These statesents are shown in the enclosure to tnis letter.

Sincerely, Wa!si E. G. % m,.-

5ew w

q John F. O' Leary Director of Licensing

Enclosure:

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cc:

Robert A. Jablon, Lsq.

5. A. Brar.dture. Esq.

8008180[74

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b 12/ 2 73 12f_h_]73 12/I/73 12/2)] 73 Fonn ABC.38, lRev. 9 53) ABCM 024 oro c4a se es4ee o de s-e f e

ANTITRUST CONDITIONS F6.,

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FLORIDA POWER CORP 0 RATION, CRYSTAL RIVER NO._ 3_,

Applicant will interconnect with and coordinate reserves by means of the sale and exchange of emergency bulk power with any entity or entities 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 (including a reasonable return) in connection therewith and allow the other parti-fits of reserve coordination.

'cipant(s) full access to the bene Explantory Notes:**

Interconnections will not be limited to low voltages when higher 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 b.

amount, but emergency service provided under such agreements will 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 from 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 the minimum reserves to be installed and/or purchased as necessary to maintain in total an adequate reliability of power supply on the interconnected system of Applicant and participant (s).

The reserve responsibility The use of the term " service area" in no way indicates an assignment It is intended only as a general 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 interconnattion 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 i" bulk, at its cost (including a reason-able return) when such transaction. 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 feciliti es.

Explanatory Notes:

a.

It is not to be considered that this condition reouires Acolicant to purchase or sell bulk power if it finds such purchase r sale o

unfeasible or its costs in connection with such purchase or sale would exceed its benefits therefrom.

b.

If Applicant engages in coordinated development of its bulk power supply system with that of 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 functicnal and technical standpoint.

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3-Explanatory Notes:

a.

This condition applies to entities with which applicant may be interconnected in the future as well as those to which it is now interconnected.

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 acccmmodate 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 man 2r 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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