ML19323G602

Discusses Review of 800509 Document Re Question of Disconnecting Facilities in Event of Interconnection in Interstate Commerce.Commission Should Not Agree Prematurely to License Conditions Re Federal Jurisdiction Exemption

ML19323G602
Person / Time
Site:	South Texas
Issue date:	05/20/1980
From:	Spiegel G SPIEGEL & MCDIARMID
To:	Chanania F NRC OFFICE OF THE EXECUTIVE LEGAL DIRECTOR (OELD)
References
NUDOCS 8006060361
Download: ML19323G602 (2)

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Jm s** i law opmets cEonot SPIEGEL P.c. SPIEGEL & MCDLLRMID sONNIE S. SLAIR c4Non$Is"T E 2600 VIRGINIA AVENUE. N.W. rNo ggga 0eERT A JAs WASHINGTON. O.C. 20037 J " ^ "^ ^

, CY eG ALAN J. ROTH TELEPHONE (202) 333-4500 GARY J. NEWELL DAN g oky ggo TELECOPf ER (202) 333-297A gyA A, u e THOM AS N. MCHUGH. JR. JOSEPM L VAN EATON DANIEL J. GUTTM AN SETEa < = ATT May 20, 1980 D AVID R. STRAUS g j< .

cocKETED g g USNRC , ,

5 MAY 2 31980 > 5 Fredric Chanania, Esq. f omteof theSectelNT oc t W g & Sa @ls Nuclear Regulatory Commission Bf8

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7735 Old Georgetown Road 4 Room 11217 ca TO Washington, C. C. 20555 Re: Proposed License Conditica l Houston Lighting & Power Comoany,'et al.,

(South Texas Project, Units 1 and 2), .

NRC Docket'Nos.'50-498A, 50-499A

Dear Fred:

I have reviewed the one-page document telecopied to us on May 9th dealing with the question of disconnecting facilities in the event of interconnection in interstate consnerce. I was travelling last week and did not have an earlier opportunity fully to review it.

I am concerned that this may indicate that the NRC Staff is tending towards acceptance of paragraph 8 of the Outline of DC Settlement under which it is proposed that Houston Lighting & Power Company and Texas Utilities would not become "public utilities" sub-ject to FERC jurisdiction under the Federal Power Act.

We have seen no basis yet offered by any party as to how the public interest will be served by bifurcating regulation over the -

utilities of the Southwest, particularly among the Texas Interconnected Systems. It seems clear that the public interest will not be served absent an inter-agency agreement between the FERC and the Texas Public Utilities Commission in order to assure, for example, that there will be fully coordinated operation of all systems to best serve the needs of the entire region. Bifurcated regulation will not provide the clear and comprehensive regulations necessary to realize the substantive

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' May 20, 1980 Fredric Chanania, Esq. -. . . - . . . . . . . . . -.

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potential advantages of coordination and interchange (as estimated in the Stagg Systems study, for example) and to insure wheeling on ,

reasonable rates, tems and conditions so that the many utilities in the area can benefit from interconnected operations.

We urge the Comi',sion Staff not to agree prematurely to any license condition allowing exemption from Federal jurisdiction -

without thorough, discussion with the small utilities who would most ~~

directly-be injured-by-this-proposal.

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f- "_~ i edrge ,G  : Spiegel

~- ----.rAttorney- for the ~Public Utilities

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., , f ~~ Board.of the City of Brownsville, Texas . .

GS/nzb cc: All parties l

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