ML19323J275
| ML19323J275 | |
| Person / Time | |
|---|---|
| Site: | Trojan File:Portland General Electric icon.png |
| Issue date: | 06/03/1980 |
| From: | Hittle L ENERGY, DEPT. OF |
| To: | Saltzman J Office of Nuclear Reactor Regulation |
| Shared Package | |
| ML19323J267 | List: |
| References | |
| AP, NUDOCS 8006190645 | |
| Download: ML19323J275 (2) | |
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O._L-s Depaitment of Energy Bonneville Power Administration omCE OF cENERAL COUNSEL PO. Box 3621 Portland. Oregon 97208 in m**fer te AP June 3, 1980
' Mr. Jerome Saltzman Antitrust & Indemnity Group Office of Nuclear Reactor Regulation U.S. Nuclear Regulatory Commission Washington, D.C.
20555'
Dear Mr. Saltzman:
At the request of the Eugene Water & Electric Board (F"EB), we have reviewed BPA's obligations under certain agreements t.ith "ugene as such obligations relate to retrospective premiums under the Price Anderson Act (Pub. L. 94' 197 ).
BPA is obligated to pay retrospective premiums on behalf.of the City of Eugene strsuant to the terms of the Net-Billing Agreements (designated as Contract Nos. 14-03-09181 through 09194).
Under the section entitled " Payment by -the Administrator" (either section 7 or 8 of such agreements) BPA is obligated to pay all proj ect annual 1
costs of the City of Eugene through net-billing credits or cash payments.
Included in proj ect costs are all costs included in the Annual Budget f or the project adopted by Eugene each year. Eugene must adopt an Annual Budget which makes provisions f or all of Eugene's proj ect costs resulting from the ownership, operation, and maintenance of the proj ect.
If an extraordinary item not budgeted occurs during the year, Eugene is ooligated to adopt an amended budget which then increases BPA's payment obligation to Eugene f or the remainder of the year. Therefore, it is our opinion th' t Bonneville is obligated to pay costs of operating, including a
costs of insurance such as that insurance obligation provided through the Price Anderson Act.
If in fac t the policy which the Nuclear Regulacory Commission issues to the proj ect owners, including Eugene, requirec re tros pec tive premiums, these premiums would be operating costs just as the ordinary premiums required under the Price Anderson Act are.
Currently BPA is paying as part of the Annual Budget the ordinary Price Anderson premiums en a routine basis.
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2 In accordance with a previous request of the EWEB, we prepared a letter dated August 5,1977, which stated our opinion (still valid) that the retrospective premiums were a Bonneville obligation and therefore met the guarantee requiraments under Alternative 5 provided in a letter dated June 15, 1977, to the Eugene Water & Electric Board. A copy of this letter was forwarded to your agency by our letter of March 6,1978.
If we can furnish further information related to our obligation under the Net-Billing Agreements, please let us know.-
Sincerely,
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Larry G Hittle Assistant General Counsel Bonneville Power Administration cc:
Mr. Rockne Gill Schwabe, Williamson, Wyatt, Moore and Roberts i
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