ML19326D706

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Application for Amend to CPPR-116 Re Sale of 56.25% Undivided Ownership in Unit 1 & 28.15% Interest of Support Facilities to Nc Electric Membership Corp & 18.75% Undivided Ownership to Saluda River Electric Cooperative
ML19326D706
Person / Time
Site: Catawba  Duke Energy icon.png
Issue date: 07/01/1980
From: Dail L, Hubbard J
DUKE POWER CO., MUNICIPALLY OWNED ELECTRIC SYSTEMS ASSOCIATION
To:
Shared Package
ML19326D704 List:
References
NUDOCS 8007030189
Download: ML19326D706 (45)


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UNITED STATES OF AMERICA NUCLEAR REGULATORY COMMISSION ,

In the Matter of )

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DUKE POWER COMPANY ) Docket Nos. 50-413

) 50-414 (Catawba Nuclear Station )

Units 1 and 2) )

I APPLICATION FOR AMENDMENT OF CONSTRUCTION PERMIT NO. CPPR - 116 ADDING CO-OWNERS AND CO-APPLICANTS I

I Duke Power Company (Duke) is presently the holder of NRC Cons truction Permits No. CPPR-ll6 for Unit 1 of the Catawba j Nuclear Station (Catawba - 1) and No. CPPR-ll7 for Unit 2 of the Catawba Nuclear Station (Catawba - 2). On October 18, 1978, the 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, 80 0 7 0 3 0//?f t

acting independently to prepare necessary agreements with Duke ind to make application for loan financing guarantees. Duke will retain exclusive responsibility for the design, construction, and operation of Catawba - 1.

1. General Information
a. Names and Addreeses of Proposed Co-Owners and Co-Applicants (i) North Carolina 21ectric Membership Corporation 3333 North Boulevard Post Office Box 27306 Raleigh, North Carolina 27611 (919) 872 - 0800 (ii) Saluda River Electric Cooperative, Inc.

207 Sherwood Drive Laurens, South Carolina 29360 (803) 984 - 5574

b. Description of Business of Procosed Co-Owners and Co-Applicants (i) NCEMC - NCEMC is a cooperative non-profit electric membership corporation incorporated under North Carolina  !

l statutes on January 20, 1949. NCEMC has all of the powers necassary and convenient to engage in the generation, transmission, sale and supply of electric power and energy to rural districts in North Carolina. NCEMC is composed of twenty-six (26) member cooperatives l

(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 45 years.

(ii) Saluda River - Salude 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 whom receive power and energy from Duke through wholesale power contracts and who will participate in Catawba - 1 (hereinafter 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 l 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 i

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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 to Procosed Co-Owners and Co-Applicants (i) NCEMC - NCEMC is a cooperative aon-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 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, TC 27944

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 948 Lexington, NC 27292.

Mr. Fred J. Neuman Cape Hatteras EMC Mr. Noel Lee, Jr.

Buxton, NC 27920 Edgecombe-Martin Co. EMC Route 3 - Box 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 McDuffie Red Springs, NC 28377 Randolph EMC Corner 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 Hignway 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 bT. 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. Post Office Box 28 Harkers Island EMC Goldsboro, NC 27530 ,

Post Office Box 198 l

-Harkers Island, NC 28531 Mr. Phillip L. Wally Union EMC  !

610 Patton Avenue 1 Post Office Box 430 l 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-Onslow EMC 259 Western Boulevard 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 Mr. D. W. Stribling- Mr. Joe L. White Blue Ridge Electric Mr. Jack Gantt Cooperative, Inc. Little River Electric Gaffney, SC 29340 Cooperative, Inc.

Abbeville, SC 29620

Nr . 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 Yo rk, 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, railroaus, other improvements for i

common use, and land, including a controlled e2clusion area having l a radius of 2500 feet around the Station): 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. Although NCEMC an'd Saluda River are only buying ownership interests in Catawba - 1 and the Support Facilities, 1 payments to Duke by NCEMC and Saluda River for their ownership

interests in Catawba - 1 and the Support Facilities are based 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 obligationa of NCEMC and Saluda River Participants under the wholesale power _ sales contracts between NCEMC and Saluda River 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 inccrporated 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 Acreement (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

and the Support Facilities: NCEMC - 56.25% of Catawba - 1 and 28.125% of the Support Facilities; Saluda River - 18.75% of Catawba - 1 and 9.375% of the Support Facilities. Transfer of

, ownership will occur at closing, anticipated to take place on December 31, 1980. 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 NCEMC and Saluda River of financing acceptable to

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them, approval by REA, approval of the transactions by Participants of NCEMC and Saluda River, cce.pletion of contracts 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 1

the aggregate costs, plus interest, incurred by Duke in connection 1

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% of Catawba 1 & 2 and 9.375% of the Support Facilities. Thirty percent (30%) of the Closing Payment shall be made to Duke on the Closing date, with the remaining 70% to be paid January 2, 1981.

(iii) NCEMC and Saluda River will execute a Promissory )

i Note dated as of1the Closing date for agreed upon fees and profits.

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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 Catawba 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 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 Agreement 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 capa' city and energy from their ownership interest in Catawba - I with like amounts of capacity and energy from Catawba - 2 (the " Catawba Reliability Exchange") and with 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 first Catawba Unit, but at the option of NCEMC and Saluda River, may be initiated as early as July 1, 1983 for Catawba - 1 and 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 have 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.

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 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.

3. Security Agreement NCEMC and Saluda River agree that they will not permit any individual to have access to Restricted Data until the Civil Service Commission shall 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 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 - 1 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

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DUKE PC 'R ,;MP N By: k

'.Vice President, Design Engineering L C. Dail Sworn to and subscribed be" ore me, the /' day of

'N , 1980.

1 Notary Public My Commission expires: .- <q NORTH CAROLINA ELECTRIC MEMBERSHIP CORPORATION By: /s/ James M. Hubbard (7/1/80)

Executive Vice Dresident Sworn to and subscribed before me, the day of

, 1980.

Notary Public

SALUDA RIVER ELECTRIC COOPERATIVE, INC.

By: /s/ Henry M. Faris (7/1/80)

President Sworn to and subscribed before me, the day of I' , 1980.

Notary Public 1

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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 Slectric 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.

t Union Electric Membership Corp.

Wake Electric Membership Corp.

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s APPENDIX B North Carolina Electric Membership Corporation Participants Blue Ridge Electric Membership Corp.

Crescent Electric Membership Corp.

Davidson Electric Membership Corp.

.Haywood Electric Membership Corp.

Pee Dee Electric Membership Corp.

L piedmont Electric' Membership Corp.

. Rutherford Electric Memberchip 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 Electric Cooperative, Inc.

Broad River Electric Cooperative, Inc.

Laurens Electric Cooperative, Inc.

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Little~ River Electfic Cooperative, Inc.

York. Electric Cooperative,.Inc.

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NORTH CAROLINA ELECTRIC MS!BERSHIP CORPORATION 1

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SALUDA RIVER ELECTRIC COOPERATIVE, INC.

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INFORMATION REQUESTED BY THE-. ATTORNEY GENERAL FOR ANTITRUST REVIEW 4

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1 I. INTRODUCTION

, North Carolina Electric Membership Corporation (NCEMC) and Saluda River Electric Cooperative, In:. (Saluda River) are proposing to purchase an ownership interest in Duke Power Company's Catawba Nuclear Unit No. I presently under construction. Loan financing will be guaranteed b'y the Rural Electrification Administration (REA) of the US Departmer.t of Agricul-ture. NCEMC will own 56.25% of Catawba Unit No. I and 28.125% of the Support Facilities, and Saluda River will own 18.75% of Catawba Unit No.1 and 9.375% of the Support Facilities. While the information contained in this document addresses both systems jointly because of the similar nature of the proposed action, NCEMC and Saluda River are, in fact, acting indepen-dently to prepare necessary agreements with Duke Power Company . obtain necessary state and federal aporovals and to cake application for the loan financing guarantees with REA.

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2 II. REQUIRED INFORMATION

1. State separately for hydroelectric and thermal generating resources

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applicant 's most recent peak load and dependable capacity for the same time period. State applicant's dependable capacity at time of system peak for

- each of the next 10 years for which information is available. Identify each new unit or resource. For hydroelectric generating capacity, indicate the number of kilowatt hours of use associated with each kilowatt of capacity during the " adverse water year" upon which dependable capacity is based.

Indicate average annual kilowatt hour loads per kilowatt, associated with each system peak shown (exclusive of interchange arrangements) .

NCEMC and Saluda River members currently purchase 100's of their total requirements from neighboring utilities. NCEMC members purchase their total demand and energy requirements from the following neighboring utilities:

Duke Power Company, Carolina Power and Light Company (CPSL), Virginia Electric Power Company (VEPCO), and Nantahala Power and Light Company (NPSL) . Saluda River members currently purchase their total demand and energy requirements from Duke Power Company and South Carolina Electric and Gas Company. Both NCEMC and Saluda River receive a small allotment of hydroelectric power from the Southeastern Power Administration which is wheeled for the respective system by the neighboring utilities.

NCEMC's annual coincident (monthly) peak demand during 1979 was about 1,198.5 Mh' and occurred during the month of February. Saluda River's annual coincident.(monthly) peak der'nd during 1979 was about 236.0 MK -nd occurred during the month of February. Neither NCEMC nor Saluda River owns any generating resources.

NCEMC and Saluda River will have the right to utilize the output from their ownership interest in Catawba as they deem appropriate, provided, however, the use of such output does not . increase Duke Power's obligation

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3 II. REQUIRED INFORMATION-(Continued).

to provide supplemental capacity t- -re Appliccnts. At present, NCEMC and Saluda River plan to utilize the outpu, from Catawba to reduce power pur-chases from Duke Power Compe- .2 y . In addition, NCEMC and Saluda River will sell a portion of the capacity and associated energy from their entitle-ment to the output of' Catawba Units 1 and 2 to Duke Power over the first ten years of commercial operation of each unit on a declining schedule. This sale will enable NCEMC and Saluda River to gradually meet increasing base load requirements while achieving significant economic benefits for their member systems.

Since both NCEMC and Saluda River will utilize their share of Catawba in the Duke served area, Table 1 shows the annual system peak in the Duke served area only and the Catawba Retained Capacity for each cooperative.

NCEMC is currently investigating the economics of joint owner-ship in generation facilities with VEPCO, the feasibility of constructing

- a peat-fired unit and the feasibility of owning and operating small hydro-electric facilities. Saluda River is investigating the feasibility of owning and operating small hydroelectric facilities. Since no definite plans to proceed with the ownership ,f these resources has been made at present, their capacity contribution is not included in the response to this Item 1.

The average annual kilowatt hour loads par kilowatt associated with NCEMC's 1979 annual peak was 4,104 hours0.0012 days <br />0.0289 hours <br />1.719577e-4 weeks <br />3.9572e-5 months <br />. The average annual kilowatt hour loads per kilowatt associated with Saluda River's 1979 annual peak was 3,839 hours0.00971 days <br />0.233 hours <br />0.00139 weeks <br />3.192395e-4 months <br />. The projected average annual kilowatt hour loads per kilo-watt associated with both NCEMC and Saluda River's annual peak in the Duke served area shown'on Table 1 is about 3,942 hours0.0109 days <br />0.262 hours <br />0.00156 weeks <br />3.58431e-4 months <br />.

. 4 TABLE 1 kNNUALSYSTEMPEAKDEMANDANDCATAWBARETAINEDCAPACITY I 2 I Catawba 2

Annua 1 Catawba Annua 1 System Retained System Peak Retained Peak Demand Capacity Demand Capacity Year (MW) (MW) (MW) (MW)

NCEMC Saluda River 1983 676.6 - 244.2 -

1984 710.5 30.5 256.4 10.2 1985 746.0 61.0 269.2 20.3 1986 783.3 122.1 282.7 40.7 1987 822.4 183.1 296.8 61.0 1988 863.6 244.2 311.7 81.4 1989 906.7 305.2 327.2 101.7 1990 952.1 344.1 343.6 114.7 1991 999.7 361.1 360.8 120.4 1992 1,049.7 380.1 378.8 127.0 1993 1,102.1 398.1 397.8 132.7 1994 1,157.3 418.0 417.6 139.3 1995 1,215.1 610.4 438.5 203.5 1996 1,275.9 610.4 460.5 203.5 1997 1,339.7 610.4 483.5 203.5 I System Peak Demand at Delivery in the Duke Service Area Only.

Load Growth projected at 5.0%

2 Retained Capacity to serve base load requirements at delivery assuming transmission losses = 5.50%

II. REQUIRED INFORMATION (Continued)

2. State applicant's estimated annual load growth for each of the next 20 years or for the period applicant utilizes in system planning.

Indicate growth both in kilowatt requirements and kilowatt hour requtrements.

The most recent " Power Requirements Study" (dated February, 1978) conducted by NCEMC and approved by REA forecasts an annual load growth of about 9.0 percent in the Duke Power served area during the period of 1976 to 1986. The most recent " Power Requirements Study" (dated March,1976) conducted by Saluda River and approved by REA forecasts an annual load growth of about 8.5 to 9.0 p'ercent in the Duke Power served area during the period 1975 and 1985. NCEMC is currently conducting a new " Power Require-ments Study". Results of this study will not be available until late 1980 or early 1981. Preliminary results from the updated Saluda River " Power Requirements Study" project load growth in the neighborhood of 7 percent per year over the period 1978 to 1982 in the Duke Power service area.

For economic feasibility analyses of the Catawba Project, both NCEMC and Saluda River have used an annual load growth of 5.0 percent for the study period,1983 to 1997 in the Duke served area. The Applicants believe that the 5.0 percent figure is more realistic than current load forecasts for their respective systems based on more recent experience and because it is consistent with forecasts of neighboring utility systems.

Growth in kilowatt hour requirements is projected to be the same as the growth in kilowatt requirements.

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  • 6 II. : REQUIRED INFORMATION (Continued)
3. State estimated annual. load growth in k!!cwatts and kilowatt hours of companies or. pools upon which the economic justification of the subject unit is based for each of the next 20 years or for the period applicant utill:ed in system planning. Identify each company or pool member. .

Tae economic 1 justification of joint ownership by NCENC and -

Saluda River in Catawba was based solely on the loads of the respective Applicant.- For information regarding the load growth for NCEMC and Saluda River please refer to Item 2.

4 For the year the subject unit would first come on line, state estimated annual load growth in kilowatts and kilowatt hours of any coordi-nating group or pool of which the applicant is a member (other than the coordinating group or pool referred to in the applicant's response to Item

3) which has generating and/or transmission planning functions. Identify each company or pool member whose loads are indicated in the response thereto.

Neither NCEMC or Saluda River are members of any coordinating group inc pool which has generating and/or. transmission planning functions.

7 II. REQUIRED INFORMATION (Continued)

5. State applicant's_ minimum installed reserve criterion (as a percentage of load) for the period when the subject unit will first come on line. If the applicant shares reserves with other systems, identify the other systems and provide minimum installed reserve criterion (as a percent-age of load) by contracting parties or pool for the period when the proposed unit will first come on line.

Both NCEMC and Saluda River will purchase reserve capacity for Catawba from Duke based on a specified reserve margin of ISS. of Catawba retained capacity in each year.

6. Describe methods used as a basis to establish, or as a guide in establishing the criterik for applicant's and/or applicant's pool's minimum amount of installed reserves (e.g. , (a) single largest unit down, (b) proba-bility methods such as loss of load one day in 20 years, loss of capacity once in 5 years, (c) other methods and/or (d) judgment. List contingencies other than risk of forced outage that enter into the determination) .

The reserve margin of 15*. is based on the provisions of the con-tractual agreements between Duke Power Company and NCEMC and Saluda River, individually. This contractual provision was negotiated between Duke and NCEMC and Saluda River and is consistent with generally accepted practice for interconnected systems. The reserve requirements are based on normal weather conditions, forced outage of the largest unit on the combined systems during the peak period, and reduction of the total capacity due to outages of. auxiliary equipment.

8 II. REQUIRED INFORMATION (Continued)

7. Indicate whether applicant's system interconnections are credited e'xplicitly or implicitly in establishing applicant's installed reserves.

Not applicable. NCEMC and Saluda River will purchase all of their reserves for Catawba from Dut;e based on a 15% reserve margin, f

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. , 9-II. REQUIRED INFORMATION (Continued)

8. . List rights to. receive emergency power and obligations to deliver emergency power, rights or obligations to receive or deliver deficiency power or unit power, or other coordinating arrangements, by reference to applicant's Federal Power Commission (FPC) rate schedules (i.e., ABC Power 6 Light Co.,-FPC Rate Schedule No. 15 including supplements 1-5), and also by. reference to applicant's state commission filings. Where documents are

, not on file with the FPC, supply copies, or where not reduced to writing, describe arrangements. Identify for each such arrangement the participat-ing parties other than applicant. Provide one line electrical and geograph-ic diagrams of coordinating groups or power pools (with generation or transmission planning functions) of which applicant's generation and transmission facilities constitute a part.

Duke Power Company will be contractually obligated to purchase a portion of the capacity and associated energy from NCEMC's and Salvda River's entitlements from Catawba over the first ten years of commercial operation of each Catawba unit on a declining schedule.

Further, NCEMC and Saluda River will be entitled to capacity and associated energy from both Catawba units pursuant to the Catawba Relia-bility Exchange and will be entitled to capacity and associated energy from the McGuire units pursuant to the McGuire Reliability Exchange.

Contractual provisions regarding the sell-back of Catawba capacity to Duke Power and provisions outlining the Reliability Exchange are contained in the Interconnection Agreement between Duke Power and NCEMC and Saluda River, individually.

10 II. REOUIREDINFORMAT, ION (Continued [

9. List, and provide the mailing address for non-affiliated electric utility systems with peak loads smaller than applicant's which serve either at wholesale or at retail adjacent to areas served by the applicant. Pro-vide a geographic one line diagram of applicant's generating and transmis-sion facilities (including subtransmission) indicating the location of adjacent systems and as to such systems indicate (if available) their load, their annual load growth, their generating capacity, their largest thermal generating unit size, and their minimum reserve criteria.

The utility systems.with peak loads smaller than NCEMC's which serve adjacent to areas served by NCEMC are listed.* Also included is information regarding the load and power supplier for each system, if available. Additional information regarding these systems is not available to the Applicants.

  • List following.

i

~

9 11 II. REQUIRED INFORMATION (Continued)

1) Southport Munic Elec Dept Southport, N.C. - New Hanover County Power Purchased from CP&L
2) Monroe Elec Dept Monroe, N.C. - Union County Load 46,380kW(Summer) 40,902 kW (Winter)

Power Purchased from Duke Power

3) Granite Falls Elec Lignt Plant Granite Falls, N.C. - Catawba County Load 4,122 kW (Summer) 4,536 kW (Winter)

Power Purchased from Duke Power

4) Morganton Elec Utility Morganton, N.C. - Burke County Load 36,288 kW (Summer) 32,832 kW (Winter)

Power Purc'ased from Duke Power

5) Fremont Light & Water Dept Fremont, N.C. - Wilson County
6) Wilson Utilities Dept Wilson, N.C. - Wilson County Load 132,145 kW (Summer) 100,966 kW (Winter)

Power Purchased from CP&L 1

7) Southport Munic Elec Dept Southport, N.C. - New Hanover County Power Purc'hased from CP&L
8) Concord Board of Light & Water Concord, N.C. - Cabarrus County Load 49,680 kW (Summer) 46,224 kW (Winter)

Power Purchased from Duke

9) Albemarla Water & Light Dept Albemarle, N.C. - Stanly County Power Purchased from Duke Apex Lighting Dept Apex, N.C. - Wake County
10) Ayden Electric Dept Ayden, N.C. - Pitt County Load 9,216 kW (Summer) 10,008 kW (Winter)

Power Purchased from Greenville Utility Comm

11) Belhaven Electric Dept Belhaven, N.C. - Beaufort County Load 2,800 kW (Summer) 2,655 kW (Winter)

Power Purchased from Virginia Power & Light l

l 9 l

12 l

i II. REQUIRED INFORMATION (Continued)

12) Benson Electric Dept Benson, N.C. - Harnett County Load 4,239 kW (Summer) 4,290 (Winter)

Power Purchased from CP&L

13) Clayton Electric Dept Clayton, N.C. - Johnston County Load 5,711 kW (Summ~er)

Power Purchased from CP&L

14) Drexel Electric System Drexel, N.C. - Burke County Load 2,178 kW (Summer) 2,844 kW (Winter)

Power Purchased from Duke & SEPA

15) Elizabeth City Dept of Public Utilities Elizabeth City, N.C. -

Pasquotank County Load 34,618 kW (Summer) 37,440 kW (Winter)

Power Purchased from Virginia E&P

16) Enfield Electric Utilities Enfield, N.C. - Halifax County Power Purchased

'1

17) Fayetteville Public Works Comm Fayetteville, N.C. - Cumberland County Load 263,200 kW (Summer) 256,200 kW (Winter)

Generating Capacity - 150,000 kW Largest Thermal Unit - 150,000 kW

13) Fountain Electric Dept Fountain, N.C. - Pitt County
19) Highlands Electric Dept Highlands, N.C. - Macon County
20) High Point Electric Utilities Dept High Point, N.C. - Davidson County Load 109,236 kW (Summer) 100,824 kW (Winter)

Power Purchased from Duke

21) Hobgood Munic Elec. Dept Hobgood, N.C. - Bertie County Power Purchased from Virginia E&P Hookerton Elec Dept Hookerton, N.C. - Greene County
22) Kinston Public Utilities Kinston, N.C. - Lenoir County Load 66,442 kW (Summer) 56,505 kW (Winter)

Power Purchased from CP&L

13 II. REQUIRED INFORMATION (Condnued)

23) LaGrange Munic Elec Dept LaGrange, N.C. - Lenoir County
24) Laurinburg Elec Dept Laurinburg, N.C. - Scotland County Load 16,727 kW (Summer) 9,798 kW (Winter)

Power Purchased from CP&L

25) Lexington Dept of Utilities Lexington, N.C. - Davidson County Load 64,800 kW (Sumer) 64,224kW(Winter)

Power Purchased from Duke

26) Louisburg Light & Water Plant Louisburg, N.C.-Franklin County l

Load 7,465 kW (Summer) 6,726 kW (Winter)

Power Purchased from CP&L & SEPA

27) Lumberton Utilities Dept Lumberton, N.C. - Robescr. County Load 41,196 kW (Sumer) 39,136 kW (Winter)

Power Purchased frem CP&L

28) New Berne Munic Elec System New Berne, N.C. - Craven County l

Load 52,300 kW (Summer) 44,500 kW (Winter)

Power Purchased from CP&L

29) Pikeville Elec Dept Pikeville, N.C. - Green County Load 1,860 kW (Sumer) 1,700 kW (Winter)

Power Purchased from CP&L Red Springs Munic Water & Light Dept Red Springs N.C. -

! 30)

Robeson County 1

Load 4,130 kW (Sumer)

Power Purchased from CP&L

31) Robersonville Water & Light Com Robersonville, N.C. -

Edgecombe County Power Purchased from VA E&C

32) Rocky Mount Public Utilities Rocky Mount, N.C. - Nash County Load 124,800 kW (Sumer) 90,000 kW (Winter) l l Power Purchased from CP&L 1
33) Selma Munic Light & Power System Selma, N.C. - Johnston County l

Load 7,136 kW (.Sumer) 7,504 kW (Winter)

Power Purchased from CP&L

14 II. REQUIRED INFORMATION (Continued)

34) Sharpsburg Elec Dept Sharpsburg, N.C. - Nash County

- Load 1,305 kW Power Purchased from city of Rocky Mountain

35) Stantonsburg Munic Light Dept Stantonsburg, N.C. - Wilson County Load 3,197 kW (Summer) 2,160 kW (Winter)

Power Purchased from City of Wilson, N.C.

36) Wake Forest Elec Dept Wake Forest, N.C. - Franklin County Load 6,143 kW (Summer) 6,039 kW (Winter)

Power Purchased from CP&L 4

37) Waynesville Munic Elec Dept Waynesville, N.C. - Haywood County Load 5,670 kW (Summer) 6,807 kW (Winter)

Power Purchased from CP&L ,

38) Wilson Utilitics Dept Wilson, N.C. - Wilson County Load 132,145 kW (Summer) 100,966 kW (Winter)

Power Purchased from CP&L

39) Danville Water, Gas, & Elec Dept Danville, Virginia Load 128,420 kW (Summer) 102,040 kW (Winter)

Generating Capacity - 39,125 kW Largest Thermal Unit - Brantly Steam No. 2 & No. 3 11,500 kW each Power Purchased from Appalachian Power

40) Southside Elec Coop, Inc. Crewe, Virgin:a Load 64,045 kW (Summer) 84,519 kW (Winter)

Power Purchased from Southeastern Power Adm & VEPC0

41) Mecklenburg Elec Coop Chase City, Virginia Load 51,000 kW (Summer) 52,000 kk' (Winter)

Power Purchased from VEPC0 & SEPA

42) Franklin Muni Light Dept Franklin, Virginia Load 15,242 kW (Summer) 14,088 kW (Winter)

Power Purchased from VEPC0

15 II. REQUIP,ED INFORMATION (Continued)

43) Fairfield Elec Coop, Inc. Winnsboro, S.C.

Load 27,897 kW (Summer) 30,299 kW (Winter)

Power Purchased from Central Elec Power Coop Who Purchases

' Power from S.C. Pub Ser Auth, SEPA, & S.C. Elec & Gas

44) Horry Elec Coop, Inc. Conway S.C.

Load 54,640 kW (Summer) 48,862 kW (Winter)

Power Purchased from Central Elec Power Coop, Inc.

Lynches River Elec Coop, Inc. Pageland, S.C.

45)

Load 27,871 kW (Summer) 30,191 kW (Winter)

Power Purchased from Central Elec Power Coop, Inc.

46) Marlboro Elec Coop, Inc. Bennettsville, S.C.
47) York Elec Coap, Inc. York, S.C.

Load 40,209 kW (Summer) 51,a39 kW (Winter)

Power Purchased from Duke & SEPA l

i

]

l l

1

- 16 II. REQUIRED INFORMATION (Continued) ,

The utility systems with peak loads smaller than Saluda River's which serve adjacent to areas served by Saluda River are listed.* Also included is infonnation regarding the load and power supplier for each system, if available. Additional information regarding these systems is I

not available to the Applicant.

  • List following.

l e

17 II.

REQUIRED INFORMATION (Continued)

1) Abbeville Water & Electric Plant, Abbeville, SC - Abbeville

, County

~ Load 8,700 kW (sumer) - 8,200 kW (winter)

Generatin'g Capacity - 3,924 kW Largest Thermal Unit - Rocky River Unit No. 1-1,124 kW Power Purchased from Duke & SEPA

2) Due West Com. of Public Works, Due West, SC - Laurens County Load 1,040 kW (sumer) - 1,152 kW (winter)
3) Easley Combined Utility System, Easley, SC - Pickens County Load 30,807 kW (sumer) - 29,565 kW (winter)

Power Purchased frcm Duke

4) Gaffney Board of Public Works, Gaffney, SC - Cherokee County Load 23,904 kW (summer) - 23,328 kW (winter)

Power Purchased from Duke

5) Greenwood Com. of Public Works, Greenwood, SC - Greenwood County

. I Load 36,900 kW (summer) - 28,776 kW (winter)

Power Purchased from Duke & SEPA

6) Greer Comm. of Public Works, Greer, SC - Spartanburg County Load 24,120 kW (sumer)

Power Purchased from Duke

7) Laurens Commissioners of Public Works, Laurens,'SC - Laurens <

County Load 16,600 kW (sumer) - 11,720 kW (winter)

Power Purchased from Duke & SEPA l

8) McCormick Com. of Public Works, McCormick, SC - McCormick i County l

Load 2,915 kW (sumer) - 3,306 kW (winter)

Power Purchased from SCE&G

9) Newberry Dept. of Public Utilities, Newberry, SC - Newberry County Load 19,746 kW (sumer) - 18,378 kW (winter)

Power Purchased from Duke

18 f

II. REQUIRED INFORMATION (Continued)

10) Rock Hill Electric Dept., Rock Hill, SC - York County Load 66,300 kW (summer) - 66,600 kW (winter)

Power Purchased from SEPA & Duke

11) Seneca Light & Water Dept., Seneca, SC - Oconee County Power Purchased from Duke
12) Union Utility Dept., Union, SC - Union County Load 19,520 kW (summer) - 15,632 kW (winter)
13) Westminster Combined Utility System, Westminster, SC - Oconee l County Load 3,960 kW (summer) - 3,768 kW (winter)
14) Aiken Electric Coop., Inc., Aiken, SC ,

Load 60,586 kW (summer) - 54,602 kW (winter)

Power Purchased from Central Elec. Power Coop. , Inc. who purchases power from SC Pub. Serv. Auth. , SEPA & SCE&C

15) Newberry Electric Coop. , Inc. , Newberry, SC

)

i Load 22,662 kW (summer) - 23,676 kW (winter)

Power Purchased from Central Electric Power Coop. l

16) Fairfield Electric Coop. , Inc. , Winnsboro, SC Load 27,897 kW (summer) - 30,299 kW (winter) l Power Purchased from Central Electric Coop.
17) Lynches River Electric Coop. , Inc. , Pageland, SC Load 27,871 kW (summer) - 30,191 kW (winter) d Power Purchased from Central Electric Power Coop., Inc.
18) Forest City Electric Dept., Forest City, NC - Polk County l

- Load 15,408 kW (summer) - 16,775 kW (winter) q Power Purchased.from Duke l

. 19) Kings Mountain Munic. Elec. System, Kings Mountain, NC

- Cleveland County Power Purchased from Duke l

. - _._ __ - .. I

19 II. REQUIRED INFORMATION (Continued)

20) Shelby Utilities Dept., Shelby, NC - Cleveland County Load 34,174 kW (summer) - 30,003 kW (winter)

. . Power Purchased from Duke

21) Crescent Electric Memb. Corp. , Statesville, NC Load 70,831 kW (sumner) - 81,745 kW (winter)

Power Purchased from Duke & SEPA

22) Haywood Electric Memb. Corp., Waynesville, NC Load 15,000 kW (sunner) - 20,000 kW (winter)

Power Purchased from CP&L, Duke, Nantahala P&L, and SEPA

23) Rutherford Electric Memb. Corp. , Forest City, NC Load 84,960 kW (summer) - 108,160 kW (winter)

Power Purchased from SEPA & Duke

24) Habersham Electric Membership Corp., Clarksville, GA Load 23,381 kW (summer) - 27,929 kW (winter)

Power Purchased frem Oglethorpe EMC & SEPA

25) Hart County Electric Membership Corp. , Hartwell, GA Load 41,478 kW (surrer) - 43,365 kW (winter)

Power Purchased from Oglethorpe Power Corp., & SEPA l

P. . >

30

' II. . REQUIRED INFORMATION (Continued)

-Neither NCEMC nor_Salu d a- River currently own any transmission or subtransmission. facilities or generating facilities.

6 b

i s

k A

1 y- +- w-~-, e ~ , , , ,,-w *+ /.o.+-,w- -

e- , s-- - , - ---* - ,-, e --+r- -r v evw + -+ y

  • 21
i. '

II. REQUIRED INFORMATION (Continued)

10. List separately those systems in Item 9 which purchase from applicant (a) all bulk power supply and (b) systems which purchase partial bulk power supply requirements. Where information is available to applicant, identify these Item 9 systems purchasing part or all of their bulk power supply requirements from suppliers other than applicant.

None of the systems listed in Item 9, for both NCEMC and Saluda River, purchase either all or partial requirements from the Applicants.

All of the systems listed in Item 9, for both NCEMC and Saluda River, purchase either all or partial requirements from systems other than NCEMC and Saluda River.

11. State as to all power generated and sold by applicant the most recent average cost of bulk power supply experienced by applicant (a) at site of generating facilities, (b) at the delivery points from the primary trans-mission (backbone) system, (c) at delivery points from the secondary transmission system, and (d) at delivery points from the distribution system, in terms of dollars per kilowatt per year, in mills per kilowatt hour, and in both the kilowatt costs and kilowatt hour costs divided by the kilowatt hours. If wholesale sales are made at varying voltages, indicate average costs it each voltage.

At present, NCEMC and Saluda River do not generate and sell any power to their' member distribution cooperatives.

l

22 II. REQUIRED INFORMATION (Continued)

12. State (a) for generating facilities anc (b) for transmission sub-divided by voltage classes, the most recent estimated cpst of applicant's culk power supply expansion program of which the subject unit is a part, in terms of dollars per kilowatt per year, in mills per kilowatt hour and in both the kilowatt costs and hour costs divided by the kilowatt hours. Also state separately the most recently estimated cost of the subject unit (s).

The most recent estiwated cost of owner- %Ip in Catawba for both NCEMC and Saluda River is as follows:

Total 0 70%

Capacity Energy Capacity Factcr Year 3/kW/Yr. mills /kWh mills /kWh 1983 219 8.94 44.65 1984 219 9.66 45.37 1985 220 10.43 46.31 1986 222 11.26 47.46 1987 224 12.14 48.67 1988 226 13.09 49.95 1989 228 14.13 51.31 1990 231 15.23 52.90 1991 234 16.43 54.59 1992 237 17.71 56.36 1993 241 19.10 58.40 1994 245 20.61 60.56 l 1995 250 22.22 62.99 1996 255 23.98 65.57 1997 261 25.86 68.42 The most recent estimated investment corresponding to NCEMC's J ownership interest in Catawba Unit .tk). 1 and the Support Facilities is

$1,138/kW or $733 million based on an ownership of about 444 MW. The most recent estimated investment corresponding to Saluda River's ownership I interest in Catawba UniI'No.1 and the Support Facilities is $1,138/kW or

$245 million based on an canership cf about 215 MW.

I

23 II. REQUIRED INFORMATION (Continued)

13. List and describe all requests for, or indications of interest in, interconnection and/or coordination and purchases or sales of coordinat-ing power and energy from adjacent utili?.ies listed in Item 9 since 1960 and state applicant's response thereto. List and describe all requests for, or ir.dications of interest in, supply of full or partial requirements of bulk power for the same period and state applicant's response thereto.

Neither NCEMC nor Saluda River have received any requests of the nature mentioned in this Item 13 for either coordination or for full or partial requiremen.t purchases or sales from the systems listed in Item 9 I

l I

l l

. 24 II. REQUIRED INFORMATION (Continued)

14. List (a) agreements to which applicant is a party (reproducing relevant paragraphs) and (b) State laws (supply citations only) which restrict or preclude coordination by, with, between, or among any electric utilities or systems identified in applicant's response to items 8 and 9.

List (a) agreements to which the applicant is a party (reproducing relevant paragraphs) and (b) State laws (supply citations only) which restrict or preclude substitution of service or establishment of service of full or partial bulk power supply requirements by an electric utility other than applicant to systems identified in items 8 and 9. Where the contract pro-vision appears in contracts or rate schedules on file with a Federal agency, identify each in the same form as in previous responses. Where the contract has not been filed with a Federal agency, a copy should be supplied unless it has been supplied pursuant to another item hereto.

Where it is not in writing, it should be described.

Neither NCEMC nor Saluda River is a party to any agreement of the nature mentioned in this Item 14. Further the Applicants are not aware of any state laws which restrict or preclude the type of transactions mentioned in this Item 14.

s

\

25 II. REQUIRED INFORMATION (Continued)

15. State, at point of delivery, average future costs of power purchased from applicant to adjacent systems identified in applicant's response to item 9 in terms of dollars / month kW for capacity, mills /kW for energy and mills /kWh for both. power and energy at purchaser's present load factor (a) at present load, (b) at 50 percent increase over present load, (c) at 100 percent increase over present load, and (d) at 200 percent increase over present load. (All costs should be determined under present rate schedules.) Where sales are made under contracts or rate schedules on file with a Federal agency and not included in the response to item 9, identify each in the same form as in previous responses. Where the contract has not been filed with a Federal agency, a copy should be supplied.

Item 15 is not applicable to NCEMC and Saluda River. None of the systems listed in Item 9 for NCEMC are members of NCEMC. Further, none of the systems listed in Item 9 for Saluda River are members of Saluda River.

Hence, the systems listed in Item 9 cannot purchase power from the Applicants.

Both NCEMC and Saluda River are non-profit electric generation and trans-mission cooperatives organized to serve their respective member distribu- ,

l tion cooperatives only. j s

G 9

- 26 II. REQUIRED INFORMATION (Continued)

16. State whether applicant has prepared, caused to be prepared, or received engineering studies for generation and transmission expansion programs which include loads of each system in item 9.

The Applicants have not prepared, caused to be prepared or received studies of the nature outlined in this Item 16.

17. L!st adjacent systems to which applicant has offered to sponsor or to conduct system surveys in contemplation of an offer by applicant to purchase, merge or consolidate with said adjacent system, subsequent to Janaury 1,1960.

None '3r both NCEMC and Saluda River.

18. List applicant's offers or proposals to purchase, merge or consolidate with electric utilities, subsequent to January 1,1960.

None for both NCEMC and Saluda River.

y

.. p n, ,

27 II. REQUIRED INFORMATION (Continued)

19. List all acquisitions of or mergers or consolidations with electric utilities by applicant, subsequent to January 1,1960, including:

(a) The name and principal place of business of the system prior to the acquisition, merger or consolidation; (b) The date the acquisitio'n merger or consolidation was consummated; (c) Gross annual revenue and most recent peak load, dependable capacity and the largest thermal generating unit of the system, prior to the dates of consummation.

None for both NCEMC and Saluda River.

20. State applicant's six (or fewer if there are not six) lowest industrial or large comercial rates for firm electric power supply in terms of cost for power and energy in mills per kilowatt hour (and separately, the demand and energy components) and indicate the portion of the charge attributed to bulk power supply. State the rates or rate blocks applicant utilizes for its six (or fewer if there are not six) promotional services such as electric space heating, electric hot water heating, and the like, in terms of mills per kilowatt hour for power and energy and indicate the portion of the rate or rate blocks attributed to bulk power supply.

None. The Applicants do not serve any retail customers. ,

__