ML19320B885

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Status Rept on Settlement Negotiations.Urges 60-day Suspension of Proceedings,Including Hearing Date,Due to Continued Negotiations W/Public Utils Board of City of Brownsville,Tx.W/Certificate of Svc & Pleading Before FERC
ML19320B885
Person / Time
Site: South Texas, Comanche Peak  Luminant icon.png
Issue date: 07/11/1980
From: Stahl D
CENTRAL & SOUTH WEST CORP., ISHAM, LINCOLN & BEALE
To:
Atomic Safety and Licensing Board Panel
References
NUDOCS 8007150431
Download: ML19320B885 (26)


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t UNITED STATES OF AMERICA N JocKErco j NUCLEAR REGUM TORY COMMISSION /f Usgo 4

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BEFORE THE ATOMIC SAFETY AND LICENSING BOAR c$effn ry 9 Ewteh 6'

In the Matter of: S (b -,3 S

HOUSTON LIGHTING & POWER S NRC DOCKET NOS. 50-498A COMPANY, THE CITY OF SAN S 50-499A ANTIONIO, THE CITY OF AUSTIN, 5 and CENTRAL POWER AND LIGHT S "OMPANY

. S (South Texas Project, Unit S Nos. 1 and 2) S S

TEXAS UTILITIES GENERATING S NRC DOCKET NOS. 50-445A COMPANY, ET AL. S 50-446A (Comanche Peak Steam S Electric Station, S Unit Nos. 1 and 2) S CENTRAL AND SOUTH WEST COMPANIES' STATUS REPORT ON SETTLEMENT NEGOTIATIONS By Order dated June 16, 1980, the Atomic Safety and Licensing Board in these consolidated proceedings requested that the parties hereto file a further status report on the progress of settlement negotiations by 4:00 p.m. on July 11, 1980. The Central and South West Companies (CSW) hereby submit their status report on settlement nego-tiations to the Board.

On June 13, 1980, at a prehearing conference held

-in Central Power & Light Company, et al. (Federal Energy Regulatory Commission Docket No. EL79-8) counsel for CSW distributed copies of the June 9, 1980 Settlement Agreement between CSW, Houston Lighting & Power Company (HLP) and the Texas Utilities Companies (TUCS ) , and stated CSW's intention 800 715 0k -

to file (1) an amendment to its application in that pro-ceeding requesting FERC to order the interconnections, wheeling and other relief as provided in the Settlement Agreement and (2) an Offer of Settlement under FERC 's Rules of Practice embodying the terms of the Settlement Agreement.

Pursuant to that statemer.t of intention, on June 27, 1980, CSW filed an Amendment to Application in FERC Docket No.

EL79-8, a copy of which is attached hereto as Exhibit A.

The CSW Offer of Settlement, to be joined in by HLP and TUCS, was to have be*. tiled with the FERC on July 11, 1980. On July 10, 1980, however, CSW filed a Request for Extension of Time Within Which to File Offer of Settle-ment, requesting until July 25, 1980 to file the Offer of Settlement and all documents required in support thereof by FERC's Rules of Practice. A copy of this Request is attached hereto as Exhibit B. Once the Offer of Settlement is filed with the FERC, other parties to that proceeding have 20 days within which to file comments thereon, and the proponents of the Offer have 10 days thereafter within which to file reply comments. Conseque.ntly, if the Offer of Settlement is filed on July 25, 1980, all co.uments and reply comments, which will indicate the extent to which other parties may oppose the proposed settlement, will be filed by August 24, 1980.

On July 3, 1980, staff counsel for the FERC and staff counsel for this Commission participating in these proceedings served on all parties to the FERC proceeding

3-in Docket No. EL79-8 a joint " Transmission Service Settle-ment Agreement" which was represented as being the FERC e i NRC staff's response to the wheeling provisions of the June 9, 1980 Settlement Agreement (Exhibit A thereto) among CSW, HLP and TUCS. Since receipt of this document on July 3, 1980, CSW engineers and management and counsel for CSW have engaged in an extensive review of the points set 'forth therein. Time has not permitted, however, this review to have progressed to the point where counsel can defin.tively state at this time the extent to which CSW eccepts or opposes any of the points set forth in the staff-proposed Agreement, although certain of the points do appear to raise serious problems. Nor has counsel for CSW discussed the substantive contents of the proposed Agreement, other than preliminarily over the telephone, with either FERC or NRC staff counsel.

Filing of the Amendment to Application in FERC Docket No. EL79-8 along with the announced intention to file an Offer of Settlement in that proceeding and the receipt of the FERC and NRC staff's proposed Agreement indicates that settlement-related activity has been ongoing in the past 30 days. CSW further believes that the past 3'O days have resulted in a clarification of the issues which separate the parties who have settled from those who have not yet joined the Settlement Agreement. CSW believes that additional time is desirable to continue the negotiating process.

4 On June 12, 1980, counsel for CSW met with counsel

.for the Public Utilities Board of the City of Brownsville, Texas, to pursue a negotiated settlement of the issues between CSW and Brownsville. At that meeting counsel for CSW responded to specific requests that counsel for Browns-ville had made earlier, including positive responses on matters such as Brownsville's participation in the South 4 Texas Project and in other generating plants to be installed on the CSW system. Also discussed at that meeting, among other subjects, was the subject of a transmission services agreement between CSW and Brownsville. Although no sub-stantive agreements have been concluded, CSW has speci-fically advised Brownsville of its position on various of Brownsville's substantive demands, and indicated that others were still under consideration.

On July 1, 1980, counsel for CSW received a letter dated June 30, 1980 from Spiegel and McDiarmid, counsel for Brownsville, setting forth Brownsville's objections to the Settlement Agreement between CSW, HLP and TUCS. CSW be-lieves that in the main those objections do not bear any relationship, and are not relevant, to the antitrust issues before this Board.

1 In sum, negotiations and discussions have con-tinued between CSW and Brownsville. CSW is committed to 1

i negotiate in good faith on those matters raised by Browns r --

  • - e * -. - . - . , . - e e-. , , ,--

ville and as to which CSW has not advised that it is unable to comply with Brownsville 's demand.

  • CSW believes that additional time is required to permit the parties to pursue their ne gotiations on these matters.

In conclusion, CSW respectfully suggests that this Licensing Board continue its suspension of all further pro-ceedings in these consolidated dockets, including the hearing date, for an additional sixty days.

Respectfully submitted, ISHAM LINCOLN & BEALE By /

f Attorneys for the Central and South West Companies l

l

  • For example, CSW has advised Brownsville that CSW cannot unilaterally implement any changes in the structure or operation of the Texas Interconnected System, and that therefore negotiation between CSW and Brownsville on such matters would not be worthwhile.

UNITED STATED OF AMERICA NUCLEAR REGULATORY COMMISSTON BEFORE THE ATOMIC SAFETY AND LICENSING BOARD In the Matter of: )

)

HOUSTON LIGHTING & POWER )

COMPANY, THE CITY OF SAN ) NRC DOCKET NOS. 50-498A ANTONIO, THE CITY OF AUSTIN, ) -

50-499A and CENTRAL POWER AND LIGHT )

COMPANY )

(South Texas Project, )

Unit Nos. 1 and 2) )

)

TEXAS UTILITIES GENERATING ) NRC DOCKET NOS. 50-445A COMPANY, et al. ) 50-446A (Comanche PeaE Steam )

Electric Station, )

Unit Nos. 1 and 2) )

CERTIFICATE OF SERVICE I, David M. Stahl, hereby certify that copies of the foregoing Report of Central and South West Companies on Status of Settlement Discussions were served upon the fol-lowing listed persons either by hand delivery or by deposit in the United States mail, first class postage prepaid on this lith day of July, 1980.

3 l

0 l David X. Stahl Dated: July 11, 1980

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MAILING LIST Marshall E. Miller, Esq. Roy P. Lessy, Jr., Esq.

U.S. Nuclear Regulatory Commission Michael B. Blume, Esq.

Washington, D.C.- 20555 U.S. Nuclear Regulatory Comm.

Washington, D.C. J)S55 Michael L. Glaser, Esq.

1150 17th Street, N. W. William C. Price Washington,-D. C. 20036 eMairman~and Chief Executive-Officer Sheldon J. Wolfe, Esq. Central Power & Light Co.

U.S. Nuclear Regulatory Commission P. O. Box 2121 Washington, D.C. 20555 Corpus Christi, Texas 78403 Atomic Safety and Licensing G. K. Spruce, Gen. Manager Appeal Board Panel- City Public Service Board U.S. Nuclear Regulatory Commission P. O. Box 1771 Washington, D. C. 20555 San Antonio, Texas 78203 Chase R. Stephens (20) Mr. Perry G. Brittain Docketing and Service Section President U.S. Nuclear Regulatory Commission Texas Utilities Generating Co.

Washington, D. C. 20555 2001 Bryan Tower Dallas, Texas 75201 Jerome D. Saltzman Chief, Antitrust and Indemnity Group R. L. Hancock, Director U.S. Nuclear Regulatory Commission City of Austin Electric Utility Washington, D.C. 20555 P. O. Box 1088 4 Austin, Texas 78767 J. Irion Worsham, Esq.

Merlyn D. Sampels, Esq. G. W. .Oprea, Jr.

Spencer C. Relyea, Esq. Executive Vice President Worsham, Forsythe & Sampels Houston Lighting & Power Co.

2001 Bryan Tower, Suite 2500 P. O. Box 1700 Dallas, Texas 75201 Houston, Texas 77001 l

Jon C. Wood, Esq. Michael I. Miller, Esq. i W. Roger Wilson, Esq. James A. Carney, Esq.

Matthews),Nowlin, Macfarlane & Barrett Isham, Lincoln & Beale 1500 Alamo National Building One First National Plaza San Antonio, Texas 78205 Chicago, Illinois 60603 Morgan Hunter, Esq.

J. A. Beuknight, Esq. Bill D. St. Clair, Esq. ,

Bill Franklin, Esq. McGinnin, Lockridge & Kilgore l Lowenstein, Newman, Reis, Axelrad Fifth Floor, Texas State ,

& Toll Bank ~2ilding 1 1025 Connecticut Avenue, N. W. '900 Congress Avenue i Washington,.D.'C. 20036 Austin, Texas 78701 1

R. Gordon Gooch, Esq. Don R. Butler, Esq.

Baker & Botts 1225 Southwest Tower 4

1701 Pennsylvania Avenue, N. W. Austin, Texas 78701

' Washington, D. C. 20006 1

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M Jerry L. . Harris, Esq..

Richard C. Balough, Esq. W.S. Robson ,

City of Austin Scuth Texas Electric P. O. Box 1088 Cooperative, Inc.  ;

. Austin, Texas 78767 Sam Rayburn Power Plant Complex Post Office 151 Joseph)B. Knotts, Jr., Esq. Nursery, Texas 77976

' Nicholas S. Reynolds, Esq. _ . _ _ . . _ _ . _ _

Debevoise & Liberman . _ _ _ _ . . _ _ Robert C. McDiarmid, Esq.

1200 17th-Street, N. W. Robert A. Jablon, Esq.

Washington, D..C. 20036 Marc R. Poirier Speigel & McDiarmid Don H. .Davidson 2600 Virginia Avenue, N.W.

City Manager Washington, D. C. 20036 City of Austin P. O. Box-1088 Kevin B. Pratt

. Austin, Texas 78767 Texas Attorney
  • General's Office I P. O. Box 12548 Jay Galt, Esq. Austin, Texas 78711 Looney, Nichols, Johnson & Hays 219 Couch Drive William H. .Burchette, Esq.

Oklahoma City,. Oklahoma 73102 Frederic H. .Ritts, Esq.

Law Offices of Northcutt Ely Knoland J. Plucknett Watergate Building Executive Director Washington, D. C. 20037 Committee on Power for the Southwest, Inc. Wheatley & Wolleson 5541 East Skelly Drive 1112 Watergate Office Bldg.

i Tulsa, Oklahoma 74135 2600 Virginia Avenue, N.W.

Washington, D. C. 20037 John W. Davidson, Esq.

Sawtelle, Goods, Davidson & Tiolo Joseph Rutberg, Esq.

- 1100 San Antonio Savings Building Antitrust Counsel San Antonio,. Texas 78205 Counsel for NRC Staff U.S. NRC Washington, D. C. 20555 Douglas F. John, Esq. Linda L. Aaker, Esq.

Akin, Gump, Hauer & Feld' Asst. Attorney General 1333 New Hampshire Avenue, N. W. P. O. Box 12548 Suite 400 Capitol Station Washington, D. C. 20036 Austin, Texas 78711 W. N. Woolsey, Esq. Robert M. Rader Dyer'and Redford Conner, Moore & Corber 1030 Petroleum Tower 1747_ Pennsylvania Ave., N.W.

Corpus Christi,' Texas 78474 Washington, D.C. 20006 i

, ' Donald Clements Melvin G. Berger, Esq.

Gulf States Utilities Company Ronald Clark, Esq.

P.:0. Box 2951 Antitrust Division, Energy Beaumont, Texas 77704 Section Room 8308 414 lith Street, N.W.

Washington, D.C. 20530 4

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Charles'G. Thrash, Jr., Esq. Joseph J. Saunders Esq.

E. W. Barnett, Esq. Chief, Public Counsel &

Theodore F. Weiss, Esq. Legislative Section J. Gregory Copeland, Esq. Antitrust Section Baker & Botts U.S. Department of Justice 3000 One Shell Plaza P.O. Box 14141 Houston, TX 77002 Washington, D.C. 20044 Donald A. Kaplan, Chief Robert E. Bathen Robert Fabrikant, Asst. Chief R. W. Beck & Associates Energy Section P.O. Box 6817 l Antitrust Division Orlando, Florida 82853 )

U. S. Department of Justice Washington, D.C. 20530 Mr. G. Holman King West Texas Utilities Company Nancy Luque P.O. Box 41 Susan B. Cyphert Abilene, TX 79604 Ronald H. Clark Frederick H. Parmenter Jonathan Feld, Esq. ,

Antitrust Division Weil, Gotshal & Manges Energy Section 767 Fifth Avenue U.S. Department of Justice New York, NY 10022 Room 8413 414 lith Street, N.W.

Washington, D.C. 20530

  • " I _'..

r' EXHIBIT A ..

, UNITED STATES OF AMERICA 3EFORE TEE FEDERAL ENERGY REuubATORY CCMMISSION i

CENTRAL POWER AND LIGHT COMPANY, )

PUBLIC.SEUIICE COMPANY OF OKLAEOMA, )

SOUTHWESTERN ELECTRIC POWER COMPANY, ) Docket No. EL 79-3 WEST TLCAS CTILITIES COMPANY )

AMENDMENT TO APPLICATION OF CENTRAL PCWER AND LIGHT COMPANY AND OTEIRS FOR INTERCONNECTION OF FACILITIES, PROVISION OF TRANSMISSION SERVICES AND RELATED RELIEF PURSUANT TO SECTIONS 210, 211 AND 212 OF THE FEDERAL POWER ACT As an A=endment to the Application filed by Central Power and Light Company (" CPL") , Public Service Company of Okla-homa ("PSO"), Southwestern Electric Power Company ("SWEPCO") and West Texas Utilities Company ("WTC") (collectively referred to hereinafter as " Applicants" or as "CSW") on February 9, 1979,

and as an alternative to the relief requested therein, Applicants hereby request that the Federal Energy Regulatory Commission (the "FIRC" or the " Commission") enter an order, as more fully described "nereinaf ter, under Sections 210, 211 and 212 of the Federal Power Act, as amended (the "Act")

(16 U.S.C. 55824i, S24j and 824k), generally requiring the construction of two direct current asynchronous electrical interconnections between the Electric Reliability Council of Texas ("ZRCOT") and the Southwest Power Pcol ("SWPP"), as well as wheeling and other related relief.

General Matters and Parties Involved 1.. All communications and correspondence relating to tle Application or this A=endment to Application should be addressed to Applicants' Counsel: David J. Rosso, Isham, Lincoln & Beale, One First National Plaza, Suite 4200, Chicago, Illinois 60603 and David M. Stahl, Isham, Lincoln

& Beale, 1120 Connecticut Avenue, N.W., Suite 325e Wash-ington, D.C. 20036. .

2.- A complete description of Applicants, other interested electric utilities, the coordinating groups of ,

+

which these utilities are = embers and the state regulatory agencies wnich have jurisdiction is contained in paragraphs ,

2 through 7, inclusive, of the Application, which are in- l corporated herein by reference. l

Descriatif y of the Procesed Direct Current Interconnections

- 3. The interconnections requested herein pursuant to Sections 210 and 212 of the Act consist of two high-voltage direct current asynchronous electrical interconnec-tions between IRCOC and the SWPP. A " North Interconnection',

to be constructed by CSW, would have an initial capacity of 200 megawatts (=w) for the transmission of power between ERCOT' and SWPP and would recuire the installation of two back-to-back direct current terminals on either side of the ERCOT-SWPP border at Oklaunion, Texas. In connection with the North Interconnection, CSW would also construct an alternating current terminal at PSO 's power station in Lawton, Oklahoma and a 345 kv cc transmission line from Lawton to the northern de terminal at Oklaunion, a distance of approximately 61 miles. A " South Interconnection", to be constructed jointly by CSW and ELP,

  • with an initial capacity of 500 cu for the transmission of power between IRCOT and SWPP would consist of a direct current transmission line j approximate'.y 151 miles long, with terminals at the CSW System's planned geherating plant in Walker County, Texas and at the South Texas Project ( "STP " ) , a generating plant l co-cwned by ELP, CPL, CPSB and Austia under construction  !

near Bay City, Texas. The North Interconnection and the l

. South Interconnection may sometimes hereinafter be referred  !

to as the Interconnections. The locations of the Interconnec-tions are shown on the map attached hereto as Exhibit A, the l North Interconnection at F-15 and the South Interconnection l at N-19. In addition, ELP would be interconnected with CPL and other utilities at the STP terminal of the South Inter-connection in order to facilitate the transmission and wheeling of power to and f cm the Interconnections among the ERCOT utilities.

4. CSW will pay for and be the " Owner" of 10 0 percent of the North Interconnection and CSW and ELP will pay for and be the " Owners" of the South Interconnection in the following proportions:

C5W -

60 1 ELP -

40 %

  • . Acronyms or short form references used in this Acendment to Application as references to various entities and not defined herein are defined terms established in the original Application.

1 l

l 4__, , ., __. _

or such percentage as will result from the cro rata reduc-tion of their respective percentage of Cwnership in either Interconnection due to participation in cwnership by other electric systems in accordance with. the provisions of para-graphs 5 and 6 of this Amendment to Application.

5. Other entities in SWPP and IRCCT have been given the opportunity to participate in the construction and ownership of Interconnections, on the condition that each such other party pays its pro rata share of the capital costs of constructing the Interconnection in which' it wishes to participate and undertakes to pay its pro rata share of the costs of operating and maintaining that Inter-connection and agrees further to be bound by the terms and i conditions of the Agreement between owners of the' In ,er-connections. A formal offer to participate in the cunership of the North and/or South Interconnections will be extended in an offer of~ Settlement, and will be held open until the expiration of the period for comments in response to an offer of Settlement under the Commission's Rules of Practice.
6. CSW has agreed to sell up to an aggregate 20 mw of capacity in the North Interconnection and an aggregate 30 mw of capacity in the South Interconnection and ELP has agreed to sell up to an aggregate 20 mw of capacity in the South Interconnection to other qualifying electric systems in ERCOT or SWPP that have not accepted the offer to parti-cipate referred to in paragraph 5 of this Amendment to Application and that elect to participate on or before June 30, 1983. Moreover, whenever planning is undertaken to increase the capacity of the Interconnections, but at inter-vals of no more than every three years after June 30, 1983 1 until June 30, 2004, other electric systems in ERCOT and  ;

.SWPP will be given the op.cortunity . to participate in the  !

planning of increases in the capacity of the Interconnec-  !

tions and of participating in the cwnership of any incre-mental capacity added, provided 4. gain that each party that wishes to participate pays its pro rata share of the capital costs of constructing the incremental addition to the Inter-connection in which it wishes to participate and undertakes l to pay its pro rata share of the costs of cperating and  !

maintaining that Interconnection and agrees further to be bound by the terns and ccnditions of the Agreement between owner. , of the Interconnections.

7. CSW,. ELP and the TU como. anies have ac. reed to ),

provide emergency back-up service to any entity using the l Interco nnections . Specifically, they will treat the loss of '

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_4 an Interconnection. in the same manner as the loss of a- generator under the cperating guidelines of TIS and SWPP.

S. Each Owner of the Interconnections will have the exclusive right to the use of the Interconnection (s) in the proportica owned.~ by it for any purpose, including, but not limited to, the- following:

(a) The North Interconnection and the South Inter-connection. will be used by CSW for the central dispatch of. energy between and acong the CSW operating companies so that the CSW cperating companies will be economically operated as a single integrated and ccordinated system; (b ) The South Interconnection =av be used bv ELP to transfer power and energy between its system and other electric utility systems; (c) The Interconnections =ay be used by any other Owner to transfer power and energy between its system and other electric utility systems.

Wheeline To, From and Across the Interconnections

9. Under the wheeling order requesced pursuant to Sections 211 and 212 of the Act, CSW, ELP and the TU companies wculd (when and to the extent capacity is available)

! be able to wheel power to and f:cm the proposed Interconnection terminals over their transmission facilities within TIS and the SWPP initially at a rate of one mill per kilowatr hour or at such higher rate as shall be adequate to recover the costs of such wheeling pursuant to a filing made unilaterally from time to time by the party furnishing service with the appropriate regulatory authority. Likewise, any capacity in the Interconnections which may be unused at any point in time may be used by other syv ems in ERCOT or SWPP cpon request, subject to interruption by any owner desiring to utilize its entire capacity and subject to payment of such rates as shall be adequate to recover the cost cf such use of the Interconnections, and other terns and conditions, as

=ay be unilaterally filed from time to tice with the Commis-sion. Any such request for usage of the Interconneccians for transfer of firm power by any such ocher systen shall be made at least thirty (30) days prior to the beginning of such proposed transfers in order to allow proper scheduling.

Use of. the Interconnections for transfers of firm power by other systems shall be available only subject to planned or

actual usage of the Interconnections by the owners for any purpose. Any. request for the usage of the Interconnections for transfer of interruptible economy or emergency energy by any such other systems shall be made at least one hour prior to the beginning of such. proposed transfers (this notice requirement car be waived in an emergency) .

Comeliance of the Procesed Interconnections and Wheeline with the Recuirecents of Sections 210, 211 and 212 of the Federal Power Act

10. The proposed Int,rconnections would constitute the first electric interconnections between IRCOT and the SWPP designed to facilitate ex:hanges of large blocks of power and energy between and among systems in the two reliability councils on a regular basis. The existence of this capability to exchange power and energy on a regular basis has numerous benefits for individual utility systecs in the region and their customers, and for other utility systecs in the interconnected eastern two-thirds of the
continental United States. Consecuently the general public interest will be. served by these Interconnections.
11. The proposed Interconnections will also permit SW to centrally dispatch the combined generating facilities of the four CSW companies, so that CSW will be economically operated as a single integrated and coordinated system. This will encourage overall conservation of energy by increasing the use of newer, more efficient solid-fuel generating units and permit the displacement of oil and gas

.by the core economical uranium, coal and lignite fuels.

Moreover, overall conservation of capital will be encouraged because the CSW cocpanies will be able to cwn larger generating units jointly, thereby realiring economies of scale.

i

12. The coordinated operation made possible by the proposed Interconnections would.also allow CSW to optimize the efficient use of its facilities and resources. The increased use 'of the larger, newer generating plants made l possible by central dispatch would significantly increase  !

efficient use of facilities. Minimizing reliance on oil and gas in f avor of uranium, coal and lignite will optimize use of fuel resources. Joint ownership of generating units will also pro =cte efficient use of capital resources. Instead of

~

each individual system installing its own individual units, 1

. - _ ~ , , - _ _ . _ ,

_ _ _ , . - . . _ _ _ _ _ .,_-._,m_. --

. . i l

1 the Interconnections will permit each of the four CSW l companies to cwn only a portion of each new generating unit that comes on line, thereby equaliring the installed reserves among the system companies and. optimiring the installed reserves on the system.

13. The proposed Interconnections will not unreasonably- impair the reliability of any electric utility affected by the interconnection order. On the contrary, the reliability of ecst, if non all, of the electric utility sys-tems to which the order applies will be icproved. Further-  ;

.more, the Interconnections will not result in a reasonably ascertainable uncompensated economic loss for, place an undue burden. cn, or impair the ability to render" adequate service of, any electric utility affected by the order.

14' . The wheeling order sought in connection with i the proposed Interconnectionn is in the public interest, would conserve a significant amount of energy, in particular, l oil and natural gas, would significantly promote the efficient use of facilities and resources, would improve the reliability of most, if not all, of the electric utility systems to which the order applies and would reasonably preserve existing competitive relationships. Furthermore, the wheeling order will not result in a reasonably ascertainable uncom-pensated economic loss for e place an undue burden on, unreasonably i= pair the reliability of, or i= pair the ability to render adequate service of, any electric utility affected by the order.

Reimbursement of Costs i

15. Applicants are ready, willing and able to reimburse any party subject to the order for interconnection, pursuant to Section 210 of the Federal Power Act, as amended (16 U.S.C. Section 824i), for such party 's share of the reasonably anticipated costs incurred under such order, as appropriate. No such costs for which reimbursement may be appropriate have yet been identified. Further, Applicants are ready, willing and able to rei= burse any party subject to the order to provide transmission services, pursuant to Section 211 of the Federal Power Act, as amended (16 U.S.C.

Section 824f), for the reasonable costs of such transmission services provided for Applicants and a reasonable rate of return on such costs, as appropriate.

Cacital and Oparatine Costs

16. The capital cost of the two direct current terminals associated with the North Interconnection is approximately $20.1 million plus S2.8 million for AFUDC, for a totai of S22.9 million in tid-1980 dollars. The capital cost of the alternating current facilities associated with the North Interconnection is' approximately $10. 9 million plus $1.3 million for AFUDC, for a totai of $12.7 million in mid-1980 dollars. The capitai cost of the two direct current ter=inals associated with a 500 mz South Interconnection is approximately 547.8 million plus 56.7 million for AFUDC for a total of S54.5 million in mid-1980 dollars and the capital cost of the de line associated therewith is approximately 523.4 million plus 54.1 million for AFUDC for a total of

$27.5 million in mid-1980 dollars. The capitai cost of the ac facilities associated with the South Interconnection is 54.1 million. plus 50.5 million for AFUDC for a total of S4. 6 million in mid-1980 dollars. The annuai operating and  ;

maintenance cost associated with the North Interconnection l is estimated to be S260,000, and the annual operating and i maintenance cost associated with a 500 mw South Interconnec- j tion is estimated to be S695,000. These costs for the South i Interconnection will be borne by CSW and ELP in the percentages set forth in paragraph 4 hereof.

Prayer for Relief WHEREFORE Applicants pray that the Commission enter an order pursuant to Sections 210, 211 and 212 of the Federal Power Act, as acended (16 U.S.C. 55824i, 824j and 824k) re-quiring:

a. CSW to construct or cause to be constructed the necessary facilities to effect a direct current asynchronous interconnection with a nominal capacity of 200 mw between 250 near Lawton, Cklahoma and NTU near Oklaunion, Texas.
b. CSW to construct or cause to be constructed the necessary facilities to effect a direct current asynchronous interconnection with a nominal capacity of 300 mw between the CSW System plant in Walker County, Texas and the ST?.

~

c. ELP to construct or cause to be constructed the necessary facilities to add an additional 200 =w of capacity to the South Interconnectica and to wheel, transmit, sell, coordinate, comingle and exchange electric power to, from, or within the State of Texas over any Interconnections, whether or not specifically

1

-g-I authorized or ordered by FIRC or by any governmental authority, with the proviso that ELP shall not thereby be subject to FERC jurisdiction under Section 201 of the Federal Power Act, as amended by virtue of Section 20i(b ) (2) of that Act_

, d.- CSW and ELP to pernit other utilities ex-pressing an interest in participating in the construc-tion and ownership of the Interconnections within the time- by which comments in respense to an Offer of Settlement =ust be filed under the Commission's Rules of Practice to do so on the condition that each such other party pays its pro rata share of the capital costs of constructing the Interconnection in which it wishes to participate and undertakes to pay its pro rata share of the costs of operating and cain-taining that Interconnection and agrees further to be bound by the terms and conditions of the Agreement betweea Cwners of the Interconnections.

e. CSW to pay for and be the "Cwner" of 100 per cent of the North Interconnection and CSW and ELP to pay for and be the "Cwners " of the South Interconnec-tion in the following proportions:

CSW -

60%

ELP -

40%

or such percentage as will result from the oro rata reduction of their respective percentage of cwnership in either Interconnection due to partici-pation in cunership by other electric systems.

f. CSW to sell up to an aggregate 20 =w of capa-city in the North Interconnection and an aggregate 30 mw of capacity in the South Interconnection and ELP to sell up to an aggregate 20 cw of capacity in the South Interconnection to other qualifying electric systecs in IRCOT or SWPP that have not accepted the offer to participate referred to in paragraph 5 of this Amend-ment to Application (and paragraph (d) of this Prayer for Relief) and that elect to participate on or before June 30, 1983. Moreover, whenever planning is undertaken to increase the capacity of the Interconnec-tions, but at intervals of to core than every three years after June 30, 1983 until June 30, 2004, other electric systems in IRCCT and SWPP will be given the cpportunity to participate in the planning of increases in the capacity of the Interconnections and of partici-pating in the cwnership of any incremental capacity

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added, provided again that each party that wishes to participate pays its pro rata share of the capital costs of constructing the incremental addition to the Interconnectica in which it wishes to participate and cadertakes- to pay its pro rata share of the ecsts of operating and. maintaining that Interconnection and agrees further to be bound by the terms and conditic.is of the Agreement between owners of the Interconnections.

g. Subject to obtaining ali necessary regulatory approvals and when and to the extent capacity is available CSW, ELPr and the TU companies to wheel power for other electric systems in ERCOT and SWPP to and from the Interconnections initially at a rate of one nill per kilowatt hour payable to each electric utility over- whose transmission lines the pcwer is transferred, or at such higher rate as shall be adequate to recover the costs of such wheeling pursuant to a filing made unilaterally from time to time by the party furnishing service with the appropriate regulatory authority.
h. CSW, ELP ' and the TU companies to provide back-up. emergency service (in the event of the loss of an Interconnection) to any entity using the Interconnec-tion in accordance with the operating guidelines of TIS and SWPP.
i. Each Gwner of the Interconnections to have the exclusive right to the use of the Interconnection (s ) in the proportion owned by it as described in paragraph

( e-) hereof, for any purpose, including, 4- (A) The North Interconnection and the South Interconnection.will be used by CSW for the central dispatch of energy between and among the CSW operating companies so that the CSW cperating companies will be economically operated as a single integrated and coordinated system; (B ) The Soeth Interconnection may be used by ELP to transfer power and energy between its )

system and other electric utility systems ;  ;

(C ) The Interconnections may be used by any other Owner to transfer pcwer and energy her- en its system and other electric utility systems ,-

(D ) Any capacity in the Interconnections which may be unused at any point in time may be 1

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used by any other system. in ERCOT or SWPP upon request, subject to interruption by any Cwner desiring to utill:e its entire capacity and subject to pay =en: of such rates as shall be adequate to recover the cost of such use of the Interconnections, and other terms and conditions, as may be unilaterally- filed by the Cwner from time to time with the Commission.. Any such request for the usage of the Interconnections for transfer of firm. power by any such other system shall be made at least thirt*; (30) days prior to the beginning of such proposed transfers in order to allow proper scheduling. Use of the Inter-connections for transfers of firm power by other systems shall be available only subj ect to planned or actual usage of the Interconnections by the owners for any purpose. Any request for the usage of the Interconnections for transfer of inter-ruptible economy or emergency energy by any such other systems shall be made at least one hour prior to the beginning of such proposed transfers (this notice requirement may be waived in an emergency);

j .. Dismissal of the proceeding known as Central Power and Licht Co. , et al, FERC Docket No. E9558;

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and providing that compliance with an order consistent with the terms of paragraphs (a) through (i) hereof and the interconnection and transmission of power and energy, shall not make the TU companies or ELP or any other electric utility or other entity a "public utility" as that term is defined by Section 201 of the Federal Power Act and subject to the jurisdiction of the Commission for any purpose other than for the purpose of carrying out the provisions of Sections 210, 211 and 212 of_ the Federal Power Act.

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i Respectfully submitted, ISHAM , LDICOLN & BEALE Nlt 0h 0 pjr David J. Rosso LUr . . ,

Cofid Rf Stahl - l l

i Attorneys for I

THE CENTRAL AND SOUTE WEST COMPAN

. l Suite 323 l 1120 Connecticut Avenue, N.W. l Washihgton, D.C. 20036 l 202/833-9730 l Or.e First National Plaza l Chicago, Illinois 60603 l 312/558-7500 ,

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Dated: June 27, 1980 l l

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VERITICATICN 07 A2?LICATICN CITT OF DALLAS )

) ss COUNTT OF DALLAS }

I, J. C'. '4 ells, having been duly sworn, do depose and say that I am Senior Vice President of Ingineering of Central and South 'Jes: Services, Inc., that I have read and as familiar with the factual alleg'acious made in the foregoing Anend=ent to Application of Cen:ral ?ower and Light Company and Others for Interconnection of Facilities, Provision of Iransmission Services and Related Relief Pursuant to See: ions 210, 211, and 212 of the Federal Power Act and that said allegations are true and correct. As Senior Vice President of Ingineering of Cen::a1 and South ' Jest Services, Inc., I am responsible for providing long range systes planning assistance

o the electric utili:7 subsidiaries of the Central and Sou:h tiest Corporation, Applicants herein, and as, therefore, in the best position with respect to all the Applicants :o be conversent with *.he broad range of f ac:s contained in :he foregoing Anendnent to Application.

[ Jack C. f4 ells i

Subscribed and sworn to before '

ne this 249. day of June, 1980.

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(/ g/Nocan Public )

1 F.7 Cocnission Ixpires July 31. 1980 . l l

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UNITED STATES OF AMERICA BEFORE THE FIDERAL ENERGY REGULATORY CCMMISSION Central Power and Light Company )

Public Service Company of Oklahoma )

i Southwestern Electric Power Company ) Occket No. EL79-3 West Texas Utilities Company )

CERTIFICATE OF SERVICE I hereby certify that I have this , day served the foregoing document upon all' parties in this proceeding in accordance with the requirements of 51.17 of the Comnission's Rules of Practice and Procedure by delivering copies in person or by mailing copies thereof by first class postage prepaid mail.

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David M. 'S tahl ISEAM, LINCOLN & 3EALE 1120 Connecticut Ave.., N.W. '

Suite 325 Washington, D .C . 20036 Dated: June 27, 1980 4

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- Exhibit B-UNITED STATES OF AMERICA BEFORE THE FEDERAL ENERGY REGULATORY CCMMISSION Central Power and Light Company )

Public Service Company of Oklahoma ) Docket No. EL79-8 Southwestern slectric Power Company )

West Texas Utilities Company )

REQUEST FOR EXTENSION OF TIME WITHIN WHICH TO F73E OFFER OF SETTLEMEST To: Hon. Daniel M. Head Presiding Administrative Law Judge The Central and South West Companies ("CSW"),

Applicants herein, respectfully request that they be granted a brief extension of time within which to file an Offer of Settlement and documents in support thereof pursuant to Section 1.18(e) of the Commission's Rules of Practice.

By Order dated June 20, 1980, the Presiding Administrative Law Judge ordered that the Offer of Settlement and support-ing documents be filed by July 11, 1980.

In support of this Request for Extension, CSW represents that additional time is needed for all the parties who intend to join in the Offer of Settlement to complete the preparation and review of the several documents which will be submitted in support thereof, including prepared testimony and exhibits and a proposed

" Order. One reason this preparation and review has not been completed is that, on July 3, 1980, Ccmmission Staff

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Counsel, in conjunction with Nuclear Regulatory Commission Staff Counsel in the South Texas Project and Comanche Peak antitrust review proceedings, served on the parties to this case a " Transmission Service Settlement Agreement,"

which was represented as the FERC and NRC Staff's response to Exhibit A of the Settlement Agreement which will 'be

.the basis of the proposed Offer of Settlement. Review of this document I and its inclications has resulted in a delav in preparation of documents supportive of the proposed Offer of Settlement. Although counsel believe a thorough review of this response is necessary before the Offer of Settlement is filed, counsel cannot, however, represent that the Offer of Settlement ultimately filed will be

' materially affected by the FERC and NRC Staff's proposed Agreement.

WHERIFORE, CSW respectfully requests that it be granted until July 25, 1980 by which to file an Offer of Settlement and supporting documents.

Respectfully submitted, ISHAM, LINCOLN & BEALE

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Attorneys for THE CENTRAL AND SOUTH WEST COMPANIES Suite 325 1120 Connecticut Avenue, N.W.

Washington, D.C. 20036 202/833-9730

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One First National Plaza Chicago, Illinois 60603 312/558-7500 i Dated:- July 10,- 1980

UNITED STATES OF AMERICA BEFORE THE FEDERAL ENERGY REGULATORY COMMISSICN Central Power and Light Company )

Public Servics Company of Oklahoma )

Docket No. EL79-8 Southwestern slectric Power Company )

West Texas Utilities Company )

CERTIFICATE OF SERVICE I hereby certify that I have this day served the foregoing document upon all parties in this proceeding in accordance with the requirements of 51.17 of the commission's Rules of Practice and Procedure by delivering copies in person or by mailing copies thereof by first class postage prepaid mail.

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