ML19326B117

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Notice of Violation from Investigation of City of Cleveland 780228 Requests for Enforcement Action,Analysis of 780127 Transmission Schedule Filed by Cleveland Electric Illuminating Co W/Ferc & Review of Util 780327 Answers
ML19326B117
Person / Time
Site: Davis Besse, Perry  Cleveland Electric icon.png
Issue date: 06/28/1978
From:
Office of Nuclear Reactor Regulation
To:
Shared Package
ML19326B110 List:
References
NUDOCS 8003060920
Download: ML19326B117 (4)


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'JL ru 5 NOTICE OF VIOLATION v9 u

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gn-na Cleveland Electric Illuminating' Company Davis Besse Unit 1, 3d m

e-1 License No. NPF-3

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'CPPR-148 CPPR-149

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As a result of (a) an investigation of a request for enforcement

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action by the City of Cleveland dated February 28,1978,(b)ananalysis, :.

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.,e of, a transmission schedule filed by The Cleveland Electri.c Illuminating -

Company (CEI) on January 27, 1978 with the Federal Energy [ite'gulatory. 'K Comiss' ion, and (c) a review of 'CEI's answers dated March 27.71973 to t.Gi W'R,

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the Nuclear Regulatory Comission'(NRC) Staff's questionnaire dated

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it appears 'that CEI' has not complied with' ant [itrusth f [,

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license condition No. 3 of.the subject license and construction permits; Q

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u Antitrust License Condition No. 3 reads ~as follows:

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"(3). Applicants shall engage in wheeling for and at the

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request of other entities in the CCCT:

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a) of electric energy' from delivery points of Applicants.to theentity(ies);and,.

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J b) of power generated by or available to the' dthU entity, 'as a result of its ownership or,entitlements*/ in generating facilities.

to delivery points of Applicants ' designated by the other entity., q,

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3 "Entitiement" includes but is.not. limited to. power made 'available

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to an entity pursuant to an exchange agreement.

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,~"*C "* P8]S 78) NRCM 0240

, j.4 f ua s.'eovamm'u ant enamtme orrica. sete -sawas,. -

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"Such wheelfng service's shall' be available with respect to any

' unused capacity on the transmission lines of Applicants, the use of which will not jeopardize Applicants' system.

In the event Applicants,

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must reduce wheeling services to'other entities due to lack of f.

capacity, such reduction shall not be effected unt11' reductions of.

h-at least 5 percent have been madelin transmission capacity' allocations ~

to other Applicants in these proceedings and thereafter shall be.

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- -made in proportion to reductions imposed upo.n other Applicants to f

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2" Applicants shall make reasonable provisions for disclosed' transmission requirements of other entities in the' CCCT in planning. -7r-

- future transmission either individually or within the CAPC.0 grouping._

By " disclosed" is meant the giving of reasonable advance. notification

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.of future requirements by entities utilizing wheeling services to a;

.be made available by Applicants."

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Staf.f has concluded that the Cleveland Electric Illuminating Company

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~(Licensee) has not reasonably complied'with this condition since Jarjuary,27n 3 1978 in thati

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(1) although antitrust license condition No. 3 requires provision of wheeling services on'a reasonable basis, the Li.cens'ee has proposed m,

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..i such ' services only until some unknown future date ("the date of the'.

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final dedsion of NRC" on the question of. validity of condition No. 3).

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Conditioning' wheeling on such a basis is unreasonable and tantamount to

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1w' a refusal to wheel.

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    • / The objective of this requirement is'to rirevent. the preempt' ion ob ' $l r Eunused capacity on the' lines of one Applicant by other Applicants ', '

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1 "or. bylentities the transmitting Applicant deeves noncompetitive.1 7 ~ J A TCompe,titiv'eTentities"are to~ be allowed opportunity ~to ' develop bulk cCQl

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. power services bptions even if:this Tresults' in' reallocation'off M

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g CAPC0 '(Central Area. Power ' Coordination Group) transmission' channels.

M T sThis ' relief is required in ' order, to avoid prolongation of Lthe /;

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' effects of Applicants' 11 legally sustained dominance.

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CCCT" with the expectation that upon request such services shall be l

provided in a timely manner, the Licensee tias proposed such services '

oril'y upon condition khat the Licensee file separate supplemental schedules' -

for each tra saction.- Conditioning wheeling on such a basis is unreasonable '

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and tantamount to a rei'usal to ' wheel.

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The five Licensee-proposed conditions to wheeling listed above, individu' ally r.

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and in concert, constitute unreasonable conditions tantam6'unt to a'

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refusal" to' wheel in violakion of antitrust license condition No. 3.

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This Notice of Violation.is sent to Cleveland Electric Illuminating

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r tompany pursuant to the provisions of 2.201 of the NRC's " Rules.of i

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m Practice," Part 2, Title 10. Code of Regulations. The Cleveland Electric Company is hereby required to submit to this Office, wit'hin twenty (20),

days of its receip of this notice, a written statement or eicplanation t

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in reply, including for the above item of noncompliance; (1) admission' i

'oi dental.of the alleged item of noncompliance; (2) the reason for the'

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item of noncompliance if admitted; (3) the corrective ste;s which have

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y been taken and the resul's achieved; (4) the corrective steps which will

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t be taken to' avoid further noncompliance; and (5) the date when full

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1 ;2 compliarice will.be' achieved.

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