ML19326B109

Forwards Notice of Violation from Investigation of City of Cleveland 780228 Request for Enforcement,Analysis of Schedule Filed by Util on 780127 W/Ferc & Review of Util 780327 Answers.Also Forwards NRC Recommendations

ML19326B109
Person / Time
Site:	Davis Besse, Perry
Issue date:	06/28/1978
From:	Case E Office of Nuclear Reactor Regulation
To:	Miller R CLEVELAND ELECTRIC ILLUMINATING CO.
Shared Package
ML19326B110	List: ML19326B109 ML19326B117
References
NUDOCS 8003060912
Download: ML19326B109 (10)

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1 JUN 28 sn d'

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, ;.e Docket Nos. 50-3

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D Mr. R. A.' Miller K

'l Executive Vice President Cleveland Electric Illminating Co.

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'. 4 Dear Hr. Miller; 4

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By ~ letter dated January 4,:1978, the City of Cleveland'(City) ~ requested.

the Nuclear Regulatory Comission (NRC) to take enforcement action 1.- ; y,~

against the Cleveland Electric Illuminating Company (CEI),in connection

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with antitrust license conditions applicable to. Davis Besse Nuclear ~

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,3 Power Station Units 1, 2, 3.and Perry Nuclear Power Plant Units 1, and 1

2.

The conditions at issue are those which require the Licensees to provide wheeling for and at~ the request of other entities in' the' combined ~

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CAPCO. company territories. By letter dated February 28, 1978, the Assistant ~ 'f Attorney General, Antitrust Division advised us of the Dep?*tment of c'

Justice's support for the City!s request.

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' ~ tf As a result of our consideration' of_ the City's request, it ' appears that' c.c.y CEI is in noncompliance with antitrust license condition No. 3 concerning '

W wheeling. We'are therefore issuing the enclosed Notice of Violation. i

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While this item of noncompliance probably could properly be dated as far f

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'back as the date of the drafting of the June 27, 1977, transmission f"$5 schedule, we believe' that at least as of CEI's submittal of the JJanuary 27_ - 6, 1973, transmission schedule to',the Federal Energy Regulatory Comission',

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(FERC) a continuing refusal to wheel in accordance with'the license b.

conditio'ns began to occur.

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a Using your January 27, 1978, transmission tariff, the NRC Staff has

'a derived a partial tariff as shown in Appendix B which we consider to'be, "~,

.in. compliance with,the license conditions.- We recognize that there may

~ be other. approaches in preparing a' tariff which complies with the requireme'nts,

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Mr. R. A. Miller i 4

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of your license. Your writt.en twenty-day response to the Notice of Violation will be considered in determining whether further enforcement action, including civil penalties, or orders modifying your license will i

be required to assure compliance.

" Sincerely, 3,_

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Edson G. Case. Acting Director

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0ffice of Nuclear Reactor Regulatio'n

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Enclosures:

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3 Appendix A - Notice of Violation

.N-Appendix, B - Recomended Changes in Tariff T

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J. P. W1111amson'- The Toledo Edison Company J. R. White - Ohio Edison Company ~

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R. E. Semler - Pennsylvania Power Company i.

S. G. Schaffer - Duquesne Light Company J. Ciaccia - City of Cleveland i

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D. Hjelmfelt Esq.

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_. B. Reynolds, Esq.

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O. Flexner, Esq. ~ - Department of Justice a

bec:.I. Ball Federal Energy Regulatory.Co_mmission

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Distribution:

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'MinorJcorrections made, see' attached yellow forj conctirrences.

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4 APPENDIX B

.NRC REC 0fHENDED CHANGES ] TO TRANSMISSION SERV

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Service Provided_

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<,; _ g Theserviceprovidedhereunder(TransmissionService)shall.be'the transmission of electric power between delivery (interconnection) points,

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of the Cleveland Electric Illuminatino Company (CEI) transmission system c

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[from a supplying utility by The Cleveland 1111munating Company (CEI)]

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.r to or from any r'uril e' ectric cooperative or municipality located within

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the Combined.CAPCO (Central Area Power Coordination Grou' p) Company ',p '9' 5

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a Territories.(CCCT) (Customer) from or to another Customer or electric ry..

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The service will be 60 Hertz, alternating current and three.,.

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s Il is. understood tha't the. obligation of CEI 'to transmit $ power for,

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Customer's account shall be subject to CEI's ability 'to' transmit a' d~

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deliver stated power consistent with the safe and proper operatfor, of.

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its' system under nomal 'and emergency conditions [for its own purposes, s.

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The avtalability of Transmission Service hereunder shall be determined ' 'o -

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Additions from.the January 27 -1978..transmissionischedule are shown i

', underlined and deletions are shown~ in brackets. This transmission,

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(3. schedule or a similar ' schedule that would have the same' effe

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be acceptable. to the Staff provided.it; meets the ' requirements of'the

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- # Federal, Energy Regulatory Commission and other terms'or conditions arle'I '

+ not introduced 'elsewhere that 'would be inconsistent with theLintent l 2 ' '

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of this tariff.

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at' the sole discretion of CEI, and] The obligation of CEI shall be further limited to times during which power is actua11'y received by CEI.

for delivery to Customer. Nothing herein shall be construed as requiring CEI to enlarge its facilities to transmit such power. Each' request m

for a transmission service reservation shall be in writing and shall mecify the maximum' amount, the source and the destination of c pacit and energy to be transferred and th'e period of time involved. R'eserva tions'

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for transmission service shall be for periods of one or more weeks and 4

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shall be requested as"far in advance as is reasonably possible considering the amount and duration of the desired service, but in no event not less

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l th'an two weeks in advance unless otherwise agreed.

If, after having agreed to transmit power on any particular occasion, CEI is pre' vented j

from making or continuing such delivery, it shall use all due diligence to remove the cause of disability and shall resume delivery as promptly as possible.

In the event CEI must reduce wheeling services under this_

tariff due to lack of capacith,'such reduction shall not be effected' until reductions of at least 5% have been made in CEI's transmission allocations' to other members of the CAPCO Group and thereafter shall be made in

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proportion to reductions imposed upon other members of the CAPC0 Group.

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'[CEI shall provide Transmission Servic.e within the limits of the

,4, capacity of its bulk transmission facilities, and related 'facilitie's, of

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'W which CEI'shall be the sole judge, witho'ut undu'e interference"with

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. service to those interconnected systems the operations of which are

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conducted, in whole or in part. pursuant to' the provisions of an. agreement with CEI, including other members of the CAPC0 group, and to the extent ~

that such Transmission Service does not, in the sole judgment of CEI,

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. impose a burden upon the system of CEI.]

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. ' The Customer by comencing to take Transmission Service from CEI y

n, agrees to take and pay for, and CEI by comencing to furnish such Service i. "

agrees to furnish the Service, subject to the terms and conditionn of e

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this Service Tariff as they may be in effect from time to time sutdect "g 7;

to adtion by the governmental bodies having regulatory jurisdiction over #f /

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c services rendered hereunder.

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Transmission Service shall be provided by CEI from time to time, e:,.

upon;(1) written request by a Customer for the reservation of transmission capacity.(Transmission Reservation) for a period of not less than 1 week '

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[12 consecutive calendar months ] (11)concurrenceinsuchrequestby CEI in writ $g, [(iii) the execution and delivery of a Supplemental

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Schedule, as provided below, (iv) filing of such Supplemental Schedule with the Federal Energy'Regulptory Comission (FERC) or any superseding.

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s-re,gulatory havin.g jurisdiction, and (v) concurrence by CEI from time to i

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time 'in the maximun amount reserved and the duration (not less' than 12.

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e consecutive calendar months' for any single transmission se,rvice) of the 1

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e, service so requested to be reserved.] CEI shall transmit from an inter-c connection point' to an interconnection (delivery) point established c'

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pursuant 'to such Transmission Reservati_o_n, [ Supplemental Schedule, to; a.s delivery point of Customer], power in an' amount up to but not exceeding.

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the amount' reserved nor'the amount received by CEI at the interconnection.. y

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point,' and the energy associated therewith (with the' amounts of power.

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and energy appropriately adjusted for losses a's specified in Section G)'

c hereof. [CEI shall transmit power from Customer to an interconnection. ',, e I t..

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point (delivery point). established pursuant to such Supplemental Schedule.

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1 f5r the' account of the Customer for a patron of, the Customer power in an

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. 'm Ji; UGS by. CEI from Customer and the energy aneciated therewith (with the a

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amount's of power and enehgy appropriately adjusted for losses as sp'ecifi d in Section G hereof).] The interconnection points between [ point from].

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which any such power.and energy shall be transmitted shall be ' established by mutual agreement between.CEI and Customer when making a' Transmission Reservation. [an'd'shall be set forth in a Supplemental Schedule, which shall' also contain the arrabgements, and the obligations which Customer '

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of the facilities' necessary to provide such interconnection l point 'and.

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@W such delivery point and the scheduling from' time to time of transmission ' '

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between;such, points. ;; 4, ;,,1}, %.

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3 If transmission services are requested by Customer for any period w.

1.,, 7 of less than 12 consecutive months, CEI reserves the right to decline to provide such transmission services under this Service Tariff and CEI shall offer transmission services under a compensatory contract or service tariff subject to the approval of the FERC.]

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This Service Tariff shall becore effective 30 days after filing

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with the FERC and shall continue in "effect for one year, and thereafter for similar periods unihss cha'nged, m6dified, or superseded.

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This Service Tariff shall terminate and'b'e of no force and effect on and after the date of the final decision of the Nuclear Regulatory

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Commiss. ion (NRC) in the antitrust proceedings associated with the licenses

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and permits for Davis-Besse and Perry nuclear units in The Toledo Edison c

Company, et al. '(Davis-Besse Nuclear Power Station Units 1, 2, and 3)

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Docket Hos. 50-346A, 50-500A, 50-501A and The. Cleveland Electric Illuminating

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' +l-Company, et al. (Perry Nuclear ~ Power Plant, Units 1 and 2) Docket Nos'.

o 50-440A, 50-441A if the final decision significantly alters or eliminates L

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antitrust license' condition 3 concerning wheeling. *

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Pending such final decision CEI'shall comply 'with the applicable,,.

.g antitrust conditions to the Davis-Besse and Perry License, in t'he Initial.

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Decision (antitrust) of the NRC Licensing Board dated January 6,1977.

Following such decision's becoming final, CEI shall comply with the

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antiitrust' conditions of such final dectsion.

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Changes in Charges and Terms and Conditions of Service er g.

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This Service Tariff, the services to be rendered, compensation and' '

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thd terms, conditions, and rates included herein are subject to be'ing

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superseded,' changed, ~or' modified either in whole or in pari, made frcm

-x 37, time to time by a legally effective filing of CEI with or by order of f

the FERC or any superseding regulatory authority having jurisdiction and both CEI and Customer shall have the right at any time to seek unilaterally superseding services, compensation, terms, conditions, and rates from

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Compensation o

i Customer shall, with respect to, transmission service which shall be. s ' D' j

reserved during any period of not'less 'than 1 week [12 consecutive

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calendar months] (the Reserved Period) under tWis'5ervice T

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CEI [ monthly], weekly an amount calculated separately for each transmission,

.m Reservation equal.to the _ product of (1)

-[$.72] and (ii) thei

j maximum amount of kilowatts which sh'all h' ave been reserve'd,(the Reserved y-2m Quantity) for transmi

ssion from or to such inteNconnection point during.

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the Reserved Periodi provided', however, that' if at any time during 'said' " ~ J.

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Reserved Period the amount of power and energy actually delivered at the _ '

o, dellvery" point, adjusted for Tosses thereon from or to the interconnection e

point for.which such transmission' service shall be so reserved, shal1 em y,

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exceed the actual amount' of power and energy received at the receiving.

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w point, the excess shall be deemed to be and shall be paid for by Customsr'~

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as an unscheduled inadverte'nt power deltiery. Anysuchexcess'deliverylQh.

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l shall 'belsettled for either by the return of equivalent power and energy ',~

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or payment of the out-of-pocket cost ir.:urred by CEI, plus '10% o such i

cost. Out-of-pocket cost shall compensate CEI for costs ' incurred 'that

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would otherwise not have been incurred and shall be as of the' delivery.

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l point,specified in the appropriatie Transmission R'eservation [ Supplemental Schedule].

If equivalent l energy is returned, it shall be returned lat tires,when the' load conditions hf' CEI are equivalent N the load conditions.

of CEI at the time the energy for which it is returned was delivered or.

if CEI elects to.,have equivalent energy returned under different conditions, x

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it shall be~ returned in such amount,'to be agreed,upon by CEI and the_ ' ['.,;

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.w Customer. as will compensate for the difference in conditions. There

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prov'4 tons'of this Section an' amount in do11'ars sufficient to reimburse CEI for any amounts paid or payable by it as sales, excise or similar P

taxes (other than taxes upon or measured by net income).

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