ML19320D540
| ML19320D540 | |
| Person / Time | |
|---|---|
| Site: | Catawba  |
| Issue date: | 07/01/1980 |
| From: | Dail L, Faris H, Hubbard J DUKE POWER CO., NORTH CAROLINA ELECTRIC MEMBERSHIP CORP., SALUDA RIVER ELECTRIC COOPERATIVE, INC. |
| To: | |
| Shared Package | |
| ML19320D532 | List: |
| References | |
| NUDOCS 8007210486 | |
| Download: ML19320D540 (17) | |
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UNITED STATES OF AMERICA NUCLEAR REGULATORY COMMISSION In the Matter of
)
)
DUKE POWER COMPANY
)
Docket Nos. 50-413
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50-414 (Catawba Nuclear Station
)
Unii.s 1 and 2)
)
APPLICATION FOR AMENDMENT OF CONSTRUCTION PERMIT NO. CPPR - 116 ADDING CO-OWNERS AND CO-APPLICANTS Duke Power Company (Duke) is presently the holder of NRC Construction Permits No. CPPR-ll6 for Unit 1 of the Catawba Nuclear Station (Catawba - 1) and No. CPPR-ll7 for Unit 2 of the Catawba Nuclear Station (Catawba - 2).
On October 18, 1978, the
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NRC issued Amendment No. 1 to Construction Permit No. CPPR-ll7 to add the North Carolina Municipal Power Agency Number 1 as a co-owner of Catawba - 2 and co-applicant for the facility.
By this application, Duke and the North Carolina Electric Membership Corporation (NCEMC) and the Saluda River Electric Cooperative, Inc.
(Saluda River) respectfully request that the NRC amend Construction Permit No. CPPR-ll6 to include NCEMC and Saluda River as co-owners and co-applicants for Catawba - 1, consistent with the proposed agreements between Duke and NCEMC and between Duke and Saluda River as hereinafter described.
While the information contained in this application addresses both systems jointly because of the similar nature of the proposed sale, NCEMC and Saluda River are, in fact.
8007s.1e4$6
f acting. independently to prepare necessary agreements with Duke and to make application for loan financing guarantees.
Duke will retain exclusive responsibility for the design, construction, and operation of Catawba - 1.
1.
General Informetion Names and Addresses oj[ Proposed Co-Owners and a.
Co-Acclicants (i)
North Carolina Electric Membership Corporation 3333 North Boulevard Fost Office Box 27306 Raleigh, North Carolina 27611 (919) 872 - 0800 (ii)
Saluda River Electric Cooperative, Inc.
207 Sherwood Driva Laurens, South Carolina 29360 (803) 984 - 5574 b.
Description of Business of Proposed Co-Owners and l
Co-Applicants (i)
NCEMC - NCEMC is a cooperative non-profit.
electric membership corporation incorporated under North Carolina statutes on January 20, 1949.
NCEMC has all of the powers necessary and convenient to engage in the generation, transmission, sale and suoply of electric power and energy to rural districts in North Carolina.
NCEMC is composed of twenty-six (26) member cooperatives (listed in Appendix A), of whom ten (10) have wholesale power contracts to receive power and energy from Duke and who will directly partici-pate in the output of Catawba - 1 (these ten are hereinafter referred to as "NCEMC Participants" or " Participants"), listed in Appendix B.
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NCEMC currently only administers such wholesale power contracts for the Participants, but beginning with the earlier of the trigger-ing of the McGuire Reliability Exchange or Commercial Operation of the first Catawba unit, each Participant will receive its supply of capacity and energy from NCEMC.
Each Participant is and will be obligated to take and pay for all of its power and energy require-ments available from NCEMC.
The terms of said contracts are for the life of the project or so long as any of NCEMC's loans to finance the project are outstanding, but not exceeding 48 years.
(ii)
Saluda River - Saluda River is an electric cooperative incorporated under the laws of South Carolina on November 21, 1958.
Saluda River has all of the powers necessary and convenient to engage in the generation, transmission, sale and supply of electric power and energy to rural areas in South Carolina.
Saluda River is composed of six (6) member cooperatives, all of i
whom receive power and energy from Duke through wholesale power contracts and who will participate in Catawba - 1 (hereina f ter referred to as "Saluda River Participants" or " Participants"),
listed in Appendix C.
Although Saluda River currently serves only as' administrator of such. wholesale power contracts, beginning with the earlier of the triggering of the McGuire Reliability Exchange or Commercial Operation of the first Catawba unit, each Participant will receive its supply of power and energy from Saluda River.
Each Saluda River Participant is and will be obligated to take and pay for all of its power and energy requirements available from Saluda River.
The
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terms of said contracts are for the life of the project or so long as any of Saluda River's loans are outstanding, but not exceeding forty-eight (48) years.
c.
Corporate Data Relating tc1 Procosed Co-Owners and Co-Applicants (i)
NCEMC - NCEMC is a cooperative non-profit electric membership corporation incorporated pursuant to Chapter 117 of the General Statutes of North Carolina.
NCEMC is not owned, controlled or dominated by an alien, a foreign corporation or foreign govern-ment.
NCEMC's office is located at 3333 North Boulevard, Post Office Box 27306, Raleigh, North Carolina 27611.
The names and business addresses of NCEMC's Board of Directors, all of whom are citizens of the United States, are as follows:
President:
Mr. L.
P. Beverage Four County EMC 605 Fremont Street Post Office Box 667
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Burgaw, North Carolina 28425 Vice President:
Mr. Donald D. Rice Crescent EMC Highway 64 East Post Office Drawer 1149 Statesville, North Carolina 28677 Secretary-Treasurer:
Mr. Marvin O. Marshall South River EMC 701 East Broad Street Post Office Drawer 931 Dunn, North Carolina 28334 Mr. Edward E. Brown, Jr.
Mr. Gordon S. Becton Albemarle EMC Carteret-Craven EMC U.S.
17 Business North Route 2 - Box 113 Post Office Box 86 Newport, NC 28570 Hertford, NC 27944 i
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. Mr. L. Reid Harris Mr.. Thomas Cockerham Central EMC Blue Ridge EMC 304 South Steel Street Post Office Box 8 Post Office Box 1107 Jefferson, NC 28640 Sanford, NC 27330 Mr. Wilbert H.
Batten, Jr.
Mr. Hugh A. Crigler, Jr.
Brunswick EMC Davidson EMC Route 2 South Main Street Clarkton, NC 28433 Post Office Box 943 Lexington, NC 27292 Mr.' Fred J.
Neuman Cape Hatteras EMC Mr. Noel Leo, Jr.
Buxton, NC 27920 Edgecombe-wrtin Co. EMC Route 3 - Lox 556 Mr.
J.
D.
Patterson Washington, NC 27889 Pitt & Greene EMC West Wilson Street Mr. Derl J.
Hinson Post Office Box 249 Lumbee River EMC Farmville, NC 27828 601 East Fourth Avenue Post Office Box 830 Mr. Bob McDuf fie Red Springs, NC 28377 Randolph EMC Ccrner Patton Ave./ Hwy. 42 Mr. H. H. McKinney Post Office Box 40 Pee Dee EMC Asheboro, NC 27203 201 East Morgan Street Post Office Box 859 Mr. V.
E. Taylor Wadesboro, NC 28170 Roanoke EMC Highway 250 North Mr. Earl J.
Ross Post Office Box 440 Piedmont EMC Rich Square, NC 27869 129 East Tryon Street Post Office Drawer 1179 Mr. L. T. Gibbs Hillsborough, NC 27278 Rutherford EMC 202 Hudlow Road Mr. Kelly Hutchens Fores t City, NC 28043 Surry-Yadkin EMC 812 South Main Street Mr. James T. Ellen Post Office Box 305 Halifax EMC Dobson, NC 27017 208 West Whitfield Street Post Office Box 667
' Mr. Robert S. Holmes Enfield, NC 27823 Tri-County EMC 1304 North William Street Mr.
E. Travis Davis, Jr.
Posc Of fice Box 28 Harkers Island EMC Goldsboro, NC 27530 Post' Office Box 198 Harkers Island, NC 28531 Mr. Phillip L. Wally Union EMC 610 Patton Avenue Post Office Box 430 Monroe, NC 28110
, - Mr. John Browning Haywood EMC
- 1819-Asheville Road Mr. Earl Shoaf Post Office Drawer 9 Wake EMC Waynesville, NC 28786 414 East Wait Avenue Post Office Box 872
- Mr. Alvin C.
Morton Wake Forest, NC 27587 Jones-Onslev C4C 259 Western P;ulevard Jacksonville, NC 28540 (ii)
Saluda River - Saluda River is an electric cooperative organized pursuant to the Rural Electric Cooperative Act, Title 33, Chapter 49 of the Code of Laws of South Carolina.
Saluda River is not owned, controlled, or dominated by an alien, a foreign corporation or foreign government.
Saluda River's office is located at 207 Sherwood Drive, Laurens, South Carolina 29360.
The names and business addresses of Saluda River's Board of Directors, all of whom are citizens.of the United States, are as follows:
President:
Mr. Henry L.
Faris 207 Sherwood Drive Laurens, South Carolina 29360 Vice President:
Mr. A.
J.
Hurt Blue Ridge Electric Cooperative, Inc.
Pickens, South Carolina 29671 Secretary-Treasurer:
Mr. R.
C.
Carroll Broad River Electric Cooperative, Inc.
Gaffney, South Carolina 29340 l
Mr. D. W. Stribling Mr. Joe L. White Blue Ridge Electric Mr. Jack Gantt Cooperative, Inc.
Little River Electric Ga ffney, SC 29340 Cooperative, Inc.
Abbeville, SC 29620
. Mr. R. C.
Carroll Mr. R.
O. Williams Mr. Carlisle Hart Mr. J. A.
Darby Broad River Electric York Electric Cooperative, Inc.
Cooperative, Inc.
Gaffney, SC 29340 York, SC 29745 Mr. J.
David Wasson, Jr.
Mr. Ralph Hendrix Laurens Electric Cooperative, Inc.
Laurens, SC 29360 2.
Financial Qualifications NCEMC and Saluda River intend to obtain loans from the Federal Financing Bank guaranteed by the Rural Electrification Administration ( " REA ") in amounts sufficient for NCEMC and Saluda River to pay to Duke amounts equal to the following percentages
. applied to the aggregate cost of the planning, design, licensing, acquisition, construction, and completion of Catawba - 1, Catawba -
2 ', and the Support Facilities (which Support Facilities include the administration building, nuclear service water pond, waste treatment facilities, switching station, cooling water discharge system, shops and laboratories, roads, parking, railroads, other improvements for common use, and land, including a controlled exclusion area having a radius of 2500 feet around the Station):
RCEMC - 28.125% of Catawoa - 1 & 2 and 28.125% of the Support Facilities; Saluda
-River - 9.375% of Catawba - 1 & 2 and 9.375% of the Support Facilities.
Although NCEMC an'd Saluda River are only buying
-ownership interests in Catawba - 1 and the Support Facilities, payments to Duke.by NCEMC and Saluda River for their ownership
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, interests in Catawba - 1 and the Support Facilities are cased on total Station costs, including costs for Catawba - 2 in consideration of the Reliability Exchanges provided by the Interconnection Agreement and described more fully below.
The obligations of NCEMC and Saluda River Participants under the wholesale power sales contracts between NCEMC and Saluda River I
and each of their Participants are take-and-pay obligations and the revenues from such contracts will be pledged as security for such loans.
NCEMC, Saluda River, and Duke have reached agreement in principle as to the terms and conditions of NCEMC and Saluda River's purchase of ownership interests in Catawba - 1 and the Support Facilities.
These terms and conditions are incorporated in the Purchase, Construction, and Ownership Agreement (the " Sales Agree-ment"), the Interconnection Agreement, and the Operating and Fuel Agreement, but are subject to further modification pending review by REA.
The principal elements of the proposed agreements between Duke and NCEMC and Duke and Saluda River, which are substantially
-the same, are as follows:-
a.
Sales Agreement (i)
Under the terms and conditions of the Sales Agreement, Duke will sell to NCEMC and Saluda River in percentages shown below, as tenants in common, without right of partition during the life of the-plant, undivided ownership interests in Catawba - 1 1
and the Support Facilities:
NCEMC - 56.25% of Catawba - 1 and 28.125% of the Support Facilities; Saluda River - 19.75% of Catawba - 1 and 9.375% of the Support Facilities.
Transfer of ownership will occur at Closing, anticipated to take place on December 31, 1990.
However, consummation of the proposed trans-action is subject to approval by the NRC of this application for the required amendment to Construction Permit No. CPPR-ll6, the arranging by NCIMC and Saluda River of financing acceptable to them, approval by REA, approval of the transactions by participants of NCEMC and saluda River, completion of centracts in form and substance satisfactory to each of the Parties, and other specified conditions.
(ii)
NCEMC and Saluda River will make a Closing Payment to Duke in an amount equal to the following percentages applied to the aggregate costs, plus interest, incurred by Duke in connection with the planning, design, licensing, acquisition and construction of Catawba - 1, Catawba - 2, and the Support Facilities, including direct and indirect labor and transferred assets but excluding any fees and profits payable to Duke:
NCEMC - 28.125% of Catawba - 1
& 2 and 28.125% of the Support Facilities; Saluda River - 9.375% o' Catawba 1 & 2 and 9.375% of the Supp0rt Facilities.
Thirty percent (30%) of the Closing Payment shall be made to Duke on the Closing e
date,_with the remaining 70% to be paid January 2, 1981.
(iii)
NCEMC and Saluda River will execute a Promissory l
Note dated as of the Closing date for agree'd upon fees and profits.
.. Such Note will be paid in levelized quarterly payments (consisting of principal and interest) over a term of twenty-five (25) years.
'The first installment will be paid ten (10) years after the Com-mercial Operation date of the first Catawba Unit to go into service, whether Catawba - 1 or Catawba - 2, provided, however, that if neither Catawba Unit is in operation on the date the first install-ment is to be made, the first installment will be paid on the date the first C7.tawba Unit goes into Commercial Operation.
(iv)
After the Closing and until the Commercial Operation of Catawba - 1, NCEMC ahd Saluda River, on a monthly basis, will pay to Duke an amount equal to the following percentages applied to the aggregate costs thereafter incurred in connection
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with the planning, design, licensing, acquisition, construction and completion of Catawba - 1, Catawba - 2, and the Support Facilities:
NCEMC - 28.125% of Catawba - 1 & 2 and 28.125% of the Support Facilities; Saluda River - 9.375% of Catawba 1 & 2 and 9.375% of the Support Facilities.
(v)
Duke will have sole responsibility for the planning, design, construction, operation, maintenance and disposal of-Catawba - 1 and the Support Facilities and is to be authorized by NCEMC and Saluda River to act on their behalf in such capacity, including the pursuit of required authorizations, permits and licenses from the NRC, and other regulatory authorities.
. b.
Interconnection Acreement After Commercial Operation of Catawba - 1, NCEMC and Saluda River will be entitled to 56.25% and 18.75%, respectively, of any capacity and energy from Catawba - 1.
The Interconnection Agreement also provides for two Reliability Exchanges wherein NCEMC and Saluda River exchange capacity and energy from their ownership interest in Catawba - 1 with like amounts of capacity and energy from Catawba - 2 (the " Catawba Reliability Exchange") and with i
like amounts of capacity and energy from Units 1 and 2 at Duke's McGuire Nuclear Station (the "McGuire Reliability Exchange").
The Catawba Reliability Exchange commences on the Commercial Operation date of the first Catawba Unit, whether Catawba - 1 or Catawba - 2 and continues until both Units are retired.
The McGuire Reliability Exchange also begins on the date of Commercial Operation of the l
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first_ Catawba Unit, but at the option of NCEMC and Saluda River, may be initiated as early as July 1, 1983 fer Catawba - 1 and
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January 1, 1985 for Catawba - 2.
The McGuire Reliability Exchange will continue until the last Unit at either Catawba or McGuire is retired.
NCEMC, Saluda River, and Duke ha've also agreed to a sell-back arrangement.
From the capacity and energy available pursuant to the Catawba Reliability Exchange, NCEMC and Saluda River will sell capacity and associated energy from their entitlements to
. Duke on a take-or-pay basis following the date of Commercial Operation of each Unit in declining amounts for a period not to exceed ten (10) years.
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c.
Operating Agreement Beginning with Commercial Operation of the first Catawba Unit, whether Catawba - 1 or Catawba - 2, NCEMC and Saluda River will pay to Duke on a monthly basis an amount equal to the following percentages applied to the aggregate cost of operation, maintenance, shutdown and capital additions of Catawba - 1, Catawba - 2, and the Support Facilities, all as set forth in the Agreement:
NCEMC - 28.125% of Catcwba - 1 & 2 and 28.125% of the Support Facilities; Saluda River - 9,375% of Catawba - 1
& 2 and 9.375% of the Support Facilities.
3.
Security Agreement NCEMC and Saluda River agree that they will not permit any individual to hav
- - ss to Restricted Data until the Civil Service Commission sn.11 have made an investigation and a report to the NRC on the character, associations and loyalty of such individual, and the NRC shall have determined that permitting such i
person to have access to Restricted Data will not endanger the common defense and security.
4.
Communications Duke will be solely responsible hereafter for communica-tions with the NRC~related to Catawba - 1.
Accordingly, all communications to Duke or NCEMC or Saluda River pertaining to Catawba - l.should continue to be sent to:
L.
C.
Dail Vice President, Design Engineering Duke Power Company Post Office Box 33189 422 South Church Street Charlotte, North Carolina 28242 j
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r DUKE PC TR OMP N
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By:
(
C.
Dail L
Vice President, Design Engineering Sworn to and subscribed before me, the
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day of
~N,..
1980.
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..s..-a.:, 3 h..,,,
Notary Public My Commission expires:. t j,, j f g _
NORTH CAROLINA ELECTRIC MEMBERSHIP CORPORA
/
NCh t'$ W By: /
James M. Hubbard (7/1/8C)
Executive Vice President Sworn to and subscribed before me, the 9
day of
% Als 1980.
h Y
/))]l1Y2 Notary Public
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f" T i -
A y My Commission Expiree:
44 /9/8.
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INC.
SALUDA JIIVER ELECTRIC.-, COOPERATIVE, j&??f:// ?l' -fC?'.'id '
Ts/ Hen 2;y M.,'Faris (7/1/80)
By:
President Sworn to and subscribed before me, the, '/
day of n9.ed
, 1980.
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.i {...ft vu (7 sky, f
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N ary Public My Commission Expires:
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APPENDIX A North Carolina Electric Membership Corporation Member Cooperatives Albemarle Electric Membership Corp.
Blue Ridge Electric Membership Corp.
Brunswick Electric Membership Corp.
Cape Hatteras Electric Membership Corp.
Carteret-Craven Electric Membership Corp.
Central Electric Membership Corp.
Crescent Electric Membership Corp.
Davidson Electric Membership Corp.
Edgecombe-Martin Co. Electric Membership Corp.
Four County Electric Membership Corp.
Halifax Electric Membership Corp.
Harkers Island Electric Membership Corp.
Haywood Electric Membership Corp.
Jones-Onslow Electric Membership Corp.
Lumbee River Electric Membership Corp.
Pee Dee Electric Membership Corp.
Piedmont Electric Membership Corp.
Pitt 6 Greene Electric Membership Corp.
Randolph Electric Membership Corp.
Roanoke Electric Membership Corp.
Rutherford Electric Membership Corp.
South River Electric Membership Corp.
Surry-Yadkin Electric Membership Corp.
Tri-County Electric Membership Corp.
Union Electric Membership Corp.
Wake Electric Membership Corp.
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APPENDIX B North Carolina Electric Membership Corporation Participants Blue Rid;;e Electric Membership Corp.
Crescent Electric Membership Corp.
Davidson Electric Membership Corp.
Haywood Electric Membership Corp.
Pee Dee Electric Membership Corp.
Piedmont Electric Membership Corp.
Rutherford Electric Membership Corp.
Surry-Yadkin Electric Membership Corp.
Union Electric Membership Corp.
Wake Electric Membership Corp.
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- APPENDIX C
.Saluda River Electric Cooperative, Inc. Participants Blue Ridge Electrie Cooperative, Inc.
Broad River Electric Cooperative, Inc.
Laurens Electric Cooperative, Inc.
Little River Electric Cooperative, Inc.
York Electric Cooperative, Inc.
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