ML19329C464
| ML19329C464 | |
| Person / Time | |
|---|---|
| Site: | Perry, Davis Besse  |
| Issue date: | 01/04/1978 |
| From: | Hjelmfelt D GOLDBERG, FIELDMAN & HJELMFELT |
| To: | Case E Office of Nuclear Reactor Regulation |
| Shared Package | |
| ML19329C462 | List: |
| References | |
| NUDOCS 8002140844 | |
| Download: ML19329C464 (25) | |
Text
~
% e n.e.
am me o
^'
L AW CFFICCS GO LDB E RG, FI ELD M AN & HJ E LM FE LT, P. C.
SutTC 650 mEueENookceEmo AmasotD FtELO* ease W AS HINGTO N, D. C. 20006 TELEPMONE (202) 393-2A44 O Aveo C. MJ E LserE LY MSCMAEL D CLDan OLENN W.LETMAe4 January 4, 1978 i
1 Mr. Edson G.
Case Director of Nuclear Reactor Regulation Nuclear Regu3atory Commission Washington, D.C.
20555
Dear Mr. Case:
4 The City of Cleveland, Ohio hereby requests the Nuclear Regulatory Commission to commence proceedings pursuant to 10 C.F.R.
S2.202 to require The Cleveland Electric Illuminating Company to comply with the license conditions attached to the operating license for Davis-Besse Nuclear Power Station Unit 1 and the construction permits issued for Davis-Besse Nuclear Power Station Units 2 and 3 and Perry Plant Units 1 and 2.
I On January 6, 1977, an Atomic Safety and Licensing Board issued its initial decision in The Toledo Edison Company and The Cleveland Electric Illuminating Company, et al.,
Docket Mos. 50-346A, 50-500A and-50-501A and The Cleveland Electric Illuminating Company et al., Docket Nos. 50-440A and 50-441A (5 NRC 133).
The Licensing Board found that issuance of licenses for the Davis-Besse and Perry units would create or maintain a situation inconsistent with the antitrust laws.
Accordingly,,the Licensing Board ordered that conditions be attached to those licenses.
Among those license con-ditions was the following:
- 3. Applicants shall engage in wheeling for and r
at the request of other entities in the CCCT:
- 1) of electric energy from delivery points of Applicants to the entity (ies); and
- 2) of power generated by or available to the other entity, as a result of its ownership or entitlements in generating facilities, to delivery points of Appli-cants designated by the other entity.
Such wheeling services shall be available with respect to any unused capacity on the transmission lines of Applicants, the use of which will not jeopardize i
8002140[ff
~
Law OrriCES GOLDBERG, FIELDM AN & HJ ELM FELT Mr. Edson G.
Case January 4, 1978 Page Two Applicants' system.
In the event Applicants must reduce wheeling services to other entities due to lack of capacity, such reduction shall not be ef-fected until reductions of at ieast 5% have been made in transmission capacity allocations to other Applicants in these proceedings and thereafter shall be made in proportion to reductions imposed upon other Applicants to this proceeding.
Applicants shall make reasonable provisions for disclosed transmission requirements of other entities in the CCCT in planning future transmission either individually or within the CAPCO grouping.
By " dis-closed" is meant the giving or reasonable advance notification of future requirements by entities utilizing wheeling services to be made available by Applicants.
On January 14, 1977, Applicants moved to stay the license conditions pending appeal.
The motion for a stay was denied by the Licensing Board by Memorandum and Order dated February 3, 1977 (LBP77-5 NRC
) and by the Atomic Safety and Licensing Appeal Board on March 23, 1977 (ALAB-385).
On April 22, 1977, the operating license for Davis-Besse Unit 1 was issued (NPF-3).
i The construction permits for Perry Nuclear Power Plant Units 1 and 2 were issued on May 3, 1977 (CPPR-14 8 and 149).
On May 6, 1977, the City of Cleveland wrote to The Cleve-land Electric Illuminating Company (CEI) requesting negotiations for an agreement for wheeling services.
Enclosed was a draft service schedule "C",
Transmission Services.
(Attachment A).
CEI responded to the City's request on June 29, 1977, with its own draft transmission service schedule which differs in several important respects from the schedule proposed by the City.
(Attachment B).
On November 18, 1977, the City wrote to CEI pointing out several deficiencies in the transmission services agreement proposed by CEI including areas in which CEI's proposal is contrary to the
. ~ _ _
.. - =.,
c w
a j
l Law OvveCES GOLDB ERG, FIELDM AN & HJ ELM F*ELT Mr. Edson G.
Case l
January 4, 1978 Page Three i
Davis-Besse and Perry license conditions.
(Attachment C).
On December 15, 1977 having received no' response to its November 18, 1977 letter, City again requested negotiations with
)
respect to a transmission service schedule.
( Attachment D).
I On December 22, 1977, CEI advised the City that shortly after the first of the year CEI will file with the Federal Energy Regu-latory Commission, CEI's proposed transmission schedule.
(Attach-j ment E).
On December 27, 1977, CEI's counsel, orally confirmed CEI's intent to file its proposed transmission services schedule.
CEI's proposed transmission services schedule fails to comply with license condition 3 to the Davis-Besse and Perry licenses l
in the following respects:
- 1) Section 1.3 provides that the service schedule shall
)
terminate after the date of the final decision of the i
Commission in the Davis-Besse and Perry proceedings.
- Thus, immediately upon issuance of a final decision affirming j
the license conditions which require a wheeling agreement under CEI's proposal the wheeling agreement would terminate.
- 2) Section 2.1 provides that CEI shall be the sole judge as to whether it has capacity available on its transmission system to provide the service requested.
If CEI is the l
sole judge of available capacity, the Commission would j
have no way to enforce its license conditions.
l j
The section also provides that transmission for the City must not interfere with transmission for other CAPCO J
members.
This proviso is directly contrary to license condition 3 which requires CEI to reduce its transmission l
for other CAPCO members by as much as 5% if necessary to i
accommodate City's request for transmission service.
In this j
regard it should be noted that during the antitrust review hearings counsel for CEI stipulated that CEI had capacity l
to wheel power to the City from the Power Authority of the State of New York.
(Tr. 4702-03).
of Dalwyn Davidson with the Commission dated August 14, 1974, attesting to CEI's capacity to accommodate wheeling l
1 i
i l
l
-^
=
u w orriccs GO LD B E RG, r l E LD M AN & HJ E LM FE LT, P. C.
Mr. Edson G. Case January 4, 1978 Page Four 1
to the City from tne Power Authority of the State of New York.
(Department of Justice Exhibit 358).
No valid reason exists for requiring a 12-month mini-i mum reservation of transmission service.
Certainly nothing l
in license condition 3 can be construed to permit CEI to require the City to purchase wheeling service for no less than 12 months.
Such a requirement would negate l
seasonal power exchanges.
(See 5 NRC 174).
- 3) Section 3.1 is also unreasonable anticompetitive in requiring a minimum term of 12 months for each wheeling transaction.
I To date, CEI has refused te offer the City a transmission service schedule which would comply with license condition 3.
Therefore, City requests that the Commission commence proceedings to enforce its license conditions.
Very truly yours, I
I f,,
l CV David C.
Hjelmfelt Attorney for City of Cleveland I
i j
1 Attachments cc: Counsel of record Jack M.
Schulman i
Robert D.
Hart f
l
m.
l'..
Av.tachment A eg h,
.$N$
J 5
RALPH J. PERK. MAYOR pgp a s,T M E N T OF PUetsC UTILITIES R AYMoND KUoVKIS OtVtSION C F UTILITit $ E NGINC E MING 8201 L AntssCC AVENUC 08MECTOR CLg V E L.A N O. C H s 0 d e l I 4 May 6, 1977 Mr. Richard A. Miller Executive Vice-President The Cleveland Electric Illuminating Company P.O. Box 5000 Cleveland, Ohio 44101
Dear Mr. Miller,
Pursuant to the CEI - Cleveland Agreement for the installa-tion and operation of the 138K7 synchronous interconnection, dated April 17, 1975, and the recent decisions by the United States' Nu-clear Regulatory Co= mission concerning the operating license'of your Davis-Besse Nuclear Power Plant, in particular, Unit #1, I have been requested to convene a meeting of the Administrative Cc=mittee, by Raymond K. Miller, Acting Ccumissioner of the Division of Light and Power, as described in Section 3.1 of said Agreement.
As described in Section 2.2 of the Agreement, the intention of the City of Cleveland at this time, is to enter into good faith negotations with CEI for the purpose of reaching an agreement on Ser-vice Schedule "C",
Transmission Service. Enclosed is a working draft of said Service Schedule "C", dated May 6, 1977, for further discussicn.
This proposed draft is obviously just a starting point and additional meetings of Committee will be necessary before this schedule can be i
said to be in final form.
Once this Service Schedule "C" is approved by the City of Cleveland and CEI, the City then will avail itself of the power and energy available from the Power Authority of the State of New York thru American Municipal Power-Chio.
t...
Mr. Richard A. Miller May 6, 1977 I am available at your convenience for this first meeting in a series of meetings of the Administrative Committee.
Very truly yours, h
s George S. Pcfok, P.E.
e*rstems Engineer vivision of Utilities APPROVED BY:
Engineering h-KjtygadK. Miller,ActIngCommissioner Division of '#ght and Power 3
f/-
9
,_ A
.s 2ond K kis, Director epartment of Public Utilities l
f/ / l # l i
'Malcolm Duuglas, Acting Dire y Department of Law Enclosure cc.
Ralph J. Perk, Mayor Richard A. Labas R. Hart Seslar Titus File GSP:t::m
~.
i
>/0/77 SERVICI SCHILU~E "C" TRANS CSSION SERV!CE Under Ag eement Dated April 17, 1975 Setween The Cleveland Ilectric Illu=inating Cecpany and The City of Cleveland, Departnent of public Utilities SECTICN 1 - DUPATION 1.1 This Service Schedule, a part of an A g ee=ent dated April 17, 1975, (Agree ent) between The Cleveland Electric Illt inating Cc pany (CII) and the City of Cleveland (City) shall beccee effective en the day of 1977 and shall continue in effect for a peried of 25 years ec== enc #.ng upcn the original Agreenent date as stipulated in Section 8.1 of said A g ee=ent.
1.2 This Schedule shall be subject to the jurisdictics of the governmental bodies having regulator / authcrity over ser-rices rendered hereunder.
This Schedule, the services to be rendered, cecpensation and the terms, cenditions and rates included herein are subject to being superseded, changed, or modifie:1 either in whole or in part, =ade frem ti=e to time by a leSally effective filing of CII vith or by order of the regulatory authority having ju-isdiction and both CE:
and the City shall have the right at any time to seek unilaterally superseding services, cocpensation, ter:s, conditicas, and rates frc= such reg.:.laterf authcrity.
SECTION 2 - SERVICES TO SI RINDIRED 2.1 CII shall, upon written request 17 the City for the reservation of trans=issica capacity for s pericd specified by the City (which period shall be not less than the period fer which the City intends to take the pcuer and energy te be transmitted) and the execution and delivery of s Supple = ental Schedule as previled
, - =
~.
~
belev, transmit frec an interecnnection point (Receiving Point) established pursuant to such bupple= ental Schedules, to an interconnection oint (Delive:/
e Foint) established pursuant to such Supple = ental Schedules, pcVer in an a cunt up to but not exceeding the a cunt reserved, an:1 the energy asscciated therevith.
2.2 CEI shall within the licits of the capacity of its bulk trans=issica facilities, and related facilities, without undue interference with service to its custc=ers (custc=ern shall te dee=ed to include other interconnected syste=s the operations 7
of which are ccuducted, in whole er in nart, pursuant to the previsions of an apeement with CE!, including cther = embers of the CA?CO Grcup), and to the extent that such transcissica does not impose a burden upon the Syste: Of CE~
(which shall be based upon existing load, no::al lead grevth, centracted nev 1 cad beyond ner:al icad grevth and its othe-
- " u transactions), frc time to time, upon (i) vritten requect by Clevelan:1 for the reservatien of transmissica capacity for a specified peried cc-extensive with the period fer which the City intends the pcVer and energy to be transmitted, (ii) concurrence in such reques: by CEI, (iii) the executien and delivery of a Supple = ental Schedu'e as previded belev, 1
(iv) concurrence by CE: in the =axi=u a: cunt reserved and the specified ' " - e - # ~-
of the service so requested to be reserved, trans it frc an intercennecticn point, i
vith other utilities (Receiving Point) established pursuant to such Supplemental i
Schedules, to an Intercennection ?cint with Cleveland (Delivery ?cint) established pursuant to such Supple = ental Schedules, pcver in an a cunt up to but not exceeding, the arount rese-ved, anti the energy asscciated therevith to Cleveland.
i 23 Each reservation of transmission capacitf arranged under paragaphs 2,1 an:12.2 1
above shall be set fer.h in a Supple = ental Schedule vich shall record the a cunt of capacity reserved and the period of the reservation.
S.e Receiving ?cint frc=
i which sny such pcVer and energy after adjustment for icsses frc= such Receiving i
r--
,cy m
-, +
-g
--cm qto
..--e-,---+
4 L
,i.
J i
Point shall be trans=itted, and the Celiverf Foint to which such pcuer and the energy relating thereto shall be trans=itted, shall be established by =utusi agree =ent between CEI and the City, and the respective locations of said Receiv-ing ?cint and said Deliverf ?cint, shal' be set forth in said Supple = ental Schedule to the Agree =ent, which Supple = ental Schedule shall also centain the 4
l arrange =ents, and the obligatiens which the City is assa=ing, in cennection with 4
the ccnstructien, cperatien and =aintenance of the facilities necessarf to provide i
I such Receiving Point and such Deliverf Point and the scheduling fren time to I
ti=e of trans=ission between such points.
l 2.k In the event CII =ust reduce trans=issicc services to Cle'veland due to a lack of O
capacity, such reductiens shall not be effected until reduction of at least 55 1
have been =ade in trans=issica capacity allocatiens to other =e=bers of the CAFC0 I
i Group.
(Toledo Edison Cc=pany, Chic Edison Cc=pany, Pennsylvania 'Cc=pany, and I
the Duquesne Light Cc=peny), and thereafter shall be =ade in propertion to the reduction i=pc' sed upon the =e=bers of the CAPCC Grcup.
t 2.5 In the event CII advises in respense to a vritten request by the City fer trans-t missien services that CII does net have the requisite capacity in its bul%
1 trans=ission facilities and related facilities to provide the requested trans-mission service, CII vill, if requested by the City to do so, include in its planning and censtruction progra= sufficient trans=issica capacity to acce==cdate j
the requested trans=issien service under this Schedule, provided City gives CE:
i I
l sufficient advance written notice to enable CE reasonably to plan and cetplete I
I frem a functional and technical standpcint the trans=ission capacity dee=ed i
2 necessary by CII to provide such service in acccrdance with CII's construction and operating standards, and, provide *urther, City ec=pensated CI fer the carrf-J ing charges of such trans=issien capacity fer the pericd during which the trans-l i
7
, -m a-missica services are furnished and until said trans=ission capacity is required (should the City cease to require thes) by CEI for its cvn use or the use of another.
i SECTICII 3 - CC:eE::SATIC:t
}
31 Cle'relani shall, with respect to transmission services which shall be reserved 1
i for a specified cer'.cd (the 3eserved Period) under this Schedule, cay to CII J
i l
monthly:
I 3 11 an a=ount calculated separately for each Receiving Point equal to the j
i product of (i) $.72, and (2.i) the naximum a= cunt of kilevatte which shall have been reserved (the 3eserved C,uantity) for trcnsmissica frc= such 2
Receiving Point du-ing the Reserved Pericd.
1 i
e ll i
'I a
i e
i l
b I
e 1
4
- = -
n
m Attachment B J'
/ THE CLEVELAND ELECTRIC ILLUMIN ATilG COMPk!'Y ILLUMIN ATING 8 LOG. e PudLIC SOUARE e CitVf LAND OHIO 44101 e TELEPHONE (216) 623 1350 o MAIL ADORES P. O 804 5000 Serving The Best Location in the Nation June 29, 1977 Mr. George S. Pofok, Systens Engineer Division of Utilities Engineering Departm2nt of Public Utilities 1201 Iakeside Avenue Cleveland, Ohio 44114
Dear Mr. Pofok:
Your letter dated May 6,1977 to Mr. R. A. Miller which we received May 19, 1977, has been referred to me. As you knew, I am the alterrate representative of The Illu:nirating Ccrpany on the A$tinistrative Ccrnittee prcvided for in the CEI-Cleveland Agreenent of April 17, 1975.
Subsecuent to receipt of your letter, Council of tM City of Cleveland, en Fay 23, 1977, enacted an ordinance authorizing the sale of the Manicipal On June 7, 1977, Electric Light Plant's systen to The Illt.nirating Ccnpany.
the Executive Ccnrtittee of the Board of Tha Cleveland Electric Illinirating Ccrpany accepted the prcycsal of sale authorized in the ordinance and author-ized the officers of the Cc@y to carry out the acceptance of the sale of the assets of the Municipal Electric Light Systen.
- Ecsever, This would appear to make the issue of wheeling PASNY powr moot.
in the interim before the actual transfer of the municipal systen takes place, if the City is able to actually get any powr and energy frcn the Pcwr Au-thority of the State of New York (PASNY) delivered to the system of The Illininating Ccrpany, in ccnpliance with the conditions irgesed by the Atanic Safety and Licensing Board on the isscance of the Operating License for Davis-Besse No.1 and the Ccnstructica Pectits for Ferry No.1 and Perry No. 2, The Illuninating Ccnpany will provide transnissicn services for that PASNY pcwr and energy to a delivery point of the City. We, of course, muld also provide transmission services for the City frcm any source other than the Pcwr Author-ity of the State of New York to a delivery point of the City. The Illinina*Eg Ccmoany would also provide transnission services for powr and energy of the City to a delivery point en CEI's systen to another entity. The Illt=iradng Ccepany's agreemn: to provide such transnissien services would tectirate upon the date of the final decision of the Nuclear Pegulatory Ccruission in the antitrust review associated with the licenses and permits for the Davis-Besse and Perry nuclear units which is presently rending before an Appeal Board.
Such transnission services would be provided in accordance with a service scNdule such as the draft which acccupanies this letter which differs fran the draft which you forwarded with your letter.
J
a..
Mr. George S. Pofok, Systers Engineer June 29, 1977 Division of Utilities Engineering Page 2 Departnent of Public Utilities k
If you believe som useful purpose would be served by meeting to discuss this draft, we can get together. I will wait until I hear further frcm you.
Very truly yours, h
k-21
/
/
>n William N. Bingl0.m Principal Fate Engineer i
MB:jc Enclosure i
cc:. City of Cleveland, law De-A nt i
I a
J l
j 1
1 I
i i
i i
1 i
i f
i f
f.
i
c.
~-
ORAFT - June 27,1977 l
SERVICE SCHEDULE C TRANSMISSION SERVICES Under Agreement Dated April 17, 1975 Between The Cleveland Electric Illuminating Company and The City of Cleveland, Department of Public Utilities SECTION 1 - DURATION 1.1 This Service Schedule, a part of an Agreement dated April 17, 1975, (Agreement) between The Cleveland Electric Illuminating Company (CEI) and the City of Cleveland (City) shall become effective on the day of
, 1977 and shall continue in effect for one 4
year, and,thereafter for similar periods unless changed, modified,'or superseded.
1.2 This Schedule shall be subject to the jurisdiction of the governmental bodies having regulatory authority over services rendered hereunder.
This Schedule, the services to be rendered, compensation and the terms, conditions, and rates included herein are subject to being superseded, changed, or modified either in whole or in part, made from time to time by a l'egally effective filing of CEI with or by order of the regulatory authority having jurisdiction and both CEI and the City shall have the i
right at any time to seek unilaterally superseding services, compensation, terms, conditions, and rates from such regulatory authority.
1.3 This Service Schedule shall terminate and be of no force and effect on and after the date of the final decision of the Nuclear Regulatory Commission in the antitrust proceedings associated with the licenses an.1 permits for the Davis-Besse and Perry nuclear units.
0 SECTION 2 - SERVICES TO BE RENDERED 2.1 CEI shall within the limits of the capaci1!y of its bulk transmission facilities, and related facilities, of which CEI shall be the sole judge, without undue interference with service to its customers (customers shall be deemed to include other interconnected systems the operations of which are conducted, in whole or in part, pursuant to the provisions of an agree-ment with CEI, including other members of the CAPCO group), and to the extent that such transmission does not, in the sole judgment of CEI, im-pose a burden upon the System of CEI, from time to time, upon (i) written request by City for the reservation of transmission capacity for a period of ~not less than 12 consecutive calendar months, (ii) concurrence in such request by CEI, (iii) the execution and delivery of a Supplemental Schrdule, as provided below, (iv) concurrence by CEI from time to time in the maximum amount reserved and the duration (not less than 12 consecutive calendar months for any single transmission service) of the service so requested to 1
be reserved, transmit from an Interconnection Point established pursuant to such Supplemental Schedule, to City, power in an amount up to but not exceeding the amount reserved, and the energy associated therewith; or transmit from City to an Interconnection Point established pursuant to such Supplemental Schedule for the account of City for a patron of City, power in an amount up to but not exceeding the amount reserved, and the energy associated therewith (with the amounts of power and energy appropriately adjusted for losses).
The Interconnection Point from which, or to which, any such power and energy shall be transmitted shall be established by mutual agreement between the
~-
I
^
. Parties to the Agreement and shall be set forth in a Supplemental Schedule to the Agreement, which shall also contain the arrangements, and the obli-gations which City is assuming, in connection with the construction, operation and maintenance of the facilities necessary t'o provide such Interconnection Point and such delivery point and the scheduling from time to teme of transmission between such points.
SECTION 3 - COMPENSATION 3.1 City shall, with respect to transmission services which shall be reserved during any period of not less than 12 consecutive calendar months (the Reserved Period) under this Schedule, pay to CEI monthly:
3.11 an amount calculated separately for each Interconnection Point equal to the product of (i) $.72 and (ii) the maximum amount of kilcwatts
. which shall have been reserved (the Reserved Quantity) for trans-mission from or to such Interconnection Point during the Reserved Period; provided, however, that (a) if at any time during said Reserved Period (i) the amcunt of power and energy actually delivered at the delivery point, (ii) adjusted for losses thereon from or to the Interconnection Point for which such transmission service shall be so
. reserved, shall exceed (iii) the ' actual amount of power and energy received at the receiving point, the excess shall be deemed to be, and, if in excess of Allowable Inadvertent Power, shall be paid for by City as an unscheduled inadvertent power delivery under Section 4.3.2 of the Agreement of which this Schedule is a part.
3.12 there shall be added to any amount calculated pursuant to any of the foregoing provisions of this Section 3.1 an amount in dollars suffi-
'o.
~
~
I
- ~
a,
'4 cient to reimburse CEI for any amount 3 paid or payable by it as sales, excise or similar taxes (other than taxes based upon or measured by l
net income) in respect of the total amount payable by Cleveland to CEI, after provision for such taxes to realize the net amount payable
' by City under such provision.
IN WITNESS WHEREOF, the Parties have caused this Agreement to this Service Schedule C, "Tranrmission Services", to be executed by their duly authorized officers this day of 1977.
THE CLEVE_AND ELECTRIC ILLUMINATING CGMPANY Attest:
By CITY OF CLEVELAND Attest:
By l
. - -. ~. -
6, e.
i' Attachment C
' * ~
~
?HN fith, of fleucinnb 4
4 OIVISION OF UTIL178E 5 E peg ENE E RING 8 203 LAM E51DE AVENUC CLCVELAND,0NIO4atta November 18, 1977 The Cleveland Electric Illuminating Company P.O. Box 5000 Cleveland, Ohio 44101 Attention:
Mr. William Bingham, Principal Rate Engineer
Dear Mr. Bingham,
Subsequent to your letter, dated June 29, 1977, concerning Service Schedule "C" for the Division of Light and Power, Dennis J. Kucinich was elected Mayon of the City of Cleveland. Ordinance #2873-77 was introduced by Mayor Kuc nich on November 14, 1977 to the Cleveland City Council called for the reneal of Ordinance #2351-76 which authorized the sale or lease of all assets of the Division of Light and Power to C.E.I. Co.
Mayor Kucinich's position on the Division of Light and Power is quite clear.
Therefore, the issue of wheeling PASNY Power is not moot as you have in-dicated, but very important to financial position of the Division of Light and Powe r.'
After consultation with the City's new legal consul, we find that your draf t of Service Schedule "C",
Transmission Services, dated June 27, 1977, needs a few refinements.
Enclosed you will find a new draft of said Service Schedule "C" with the beforementioned refinements.
Section 1.3 has been removed from your 6/27/77 draf t.
There is no reason for providing for termination upon issuance of a final decision by NRC Appeal Board. This is particularly true if the Appeal Board affirms the decision of the Licensing Board which requires C.E.I. to wheel power for the City. The proposed Service Schedule G, Transmission Services, between C.E.I. and City of Painesville does not contain this stipulation.
_ _. ~ _. _ _ _ _.., _
w.
I l
f' o
)
Further, Section 2.1 of your draft provides that C.E.I. would be the sole judge of whether capacity is available. This is contrary to the requirements 2
of license conditions for the Perry and Davis units which mandates for wheeling j
services by C.E.I. upon request of the City and provides for certain reductions I
in wheeling services priorities due to lack of capacity.
New Sections 2.2 and 2.3 solve these problems.
i
}
Also, in the Section 2.1 the transmission services are limited to reser-vation periods of net less than 12 consecutive calendar months.
This is an ex-tremely undesirable clause and does not belong in this service schedule. The j
reservation period should be defined in each supplemental schedule that is de-l veloped when the City contracts from time to time with other entities for power.
1 l
Finally, Section 3.12 concerning taxes has to be refined, these issues are still unresolved.
However, to expediate this service schedule, the phrase-ology added in the City's 7/27/77 draft should solve this problem.
l l
In conclusion, we should pursue with all duc di,spatch perfection of this Service Schedule "C", Transmission Services.
i Very truly yours,
% s(P d-George "- Pofok, P.E.
j Systems Engineer l
Division of Utilities Engineering
' r.0VE BY:
1
,J l
A
_[
l -
f m l
1sp o d K. Milh r, Acting 6 _. sioner I
.vly on of Light and Power i
b S }-),
Julip's Ciaccia, Jr., Act ing, Director Dep4rtment o'f Public Utilities n\\. I\\ D' \\-
)
]
Jack 1(.-Schulman, Director Department of Law I
\\
v Enclosure cc.
Dennis J. Kucinich, Mayor l
Richard A. Labas Robert D. Hart I
Seslar Titus File CSP:mm i
=_.-.
_-. - =_ - -
~.
t
)
J DRAFT - July 27, 1977 i
l I
t SERVICE SCHEDULE C TRANSMISSION SERVICES
{
Under Agreedent Dated April 17, 1975 i
Between 3
The Cleveland Electric Illuminating Company 1
}
and The City of Cleveland, Department of Public Utilities 4
i SECTION 1 - DURATION 1.1 This Service Schedule, a part of an Agreement' dated April 17, 1975, j
(Agreement) between The Cleveland Electric Illuminating Company (CEI) and the City of Cleveland (City) shall become effec.tive on the
' day of
, 1977 and shall continue in effect for one year, and thereafter for similar periods unless changed, modified, or superseded.
1.2 This Schedule shall be subject to the jurisdiction of the governmental bodies having regulatory authority over services rendered nereunder.
This Schedule, the services to be rendered, ccmpensation and the terms, conditions, and rates included herein are subject to being superseded, l,
changed, or modified either in whole or in part, made from time to time j
by a legally effective filing of CEI with or by order of the regulatory 1
authority having jurisdiction and both CEI and the City shall have the l
l right at any time to seek unilaterally superseding services, compensation, terms, conditions, and rates from such regulatory authority.
~.
.. c SECTION 2 - SERVICES TO BE RENDERED 2.1 CEI shall within the limits of the capacity of its bulk transmission facilities, and related facilities, without undue interference with service to its customers (custcmers shall be deemed to include other interconnected systems the operations of which are conducted, in whole or in part, pursuant to the provisions of an agreement with CEI, in-cluding other menbers of the CAPC0 grous), and to the extent that such transmission does not impose a burden upon the System of CEI, from time to time, upon (i) written request by City for the reservation of trans-mission capacity, (ii) concurrence in such request by CEI, (iii) the execution and delivery of a Supplemental Schedule, as provided below, (iv) concurrence by CEI from time to time in the maximum amount reserved-and the duration of the service so requested to br reserved, transmit from an Interconnection Point establish]d pursuant to such Supplemental S.chedule, to City, power in an amount up to but not exceeding the amount reserved, and the energy associated therewith; or transmit from City to an Interconnection Point establishea pursuant to such Supplemental Schedule for the account of City for a patron of City, pcwer in an amcunt up to but not exceeding the amount reserved, and-the energy associated thcrewith (with the amounts of power and energy appropriately adjusted for losses).
The Interconnection Point from which, or to which, any sucn power and energy shall be transmitted shall be established by mutual ag eement between the Parties to the Agreement and shall be set forth in v. Supplemental Schedule to the Agreement, which shall also contain the arrangements, and the obli-gations which City is assuming, in connection vith the construction, operation and maintenance of the facilities r.ecessary to provide such 2
l Interconnection Point and such delivery point and the scheduling from time to time of transmission between such points.
CEI now has sufficient
~[
transmission capacity to accommodate transmission of 22.5 mw of power and energy from the Power Authority of the State of New York to Cleveland.
2.2 In the event CEI advises in response to a written request by the City l
for transmission services that CEI does not have the requisite capacity in its bulk transmission facilities and related facilities to provide the requested transmission service, CEI will, if requested by the City to do so, include in its planning and constructf on program sufficient transmission capacity to acccmmodate the requested transmission service under this Schedule, provided the City gives CEI sufficient advance written notice to enable CEI reasonably to plan and complete frca functional and technical standpoint the transmission capacity deemed y
n,ecessary by CEI to provide 2uch service in accordance with CEI's j
construction and operating standards, and, provide further, City ccm-pensated CEI for the carrying charges of such transmission capacity for the period during which the transmission services are furnished and said transmission is required (should the City cease to require them) by CEI for its own use or the use of another.
2.3 In the event CEI must reduce transmission services to the City due to a lack of capacity, such reductions shall not be effected until reduc-tion of at least 5:; have been made in tra'nsmission capacity allocations to other members of the CAPC0 group.
(Toledo Edison Company, Ohio Edison Company, Pennsylvania Pcwer Company, and the Duquesne Light Company), and thereaf ter shall be made in proportion to the reduction imposed upon the 1
members of the CAPC0 group. :
SECTION 3 - COMPENSATION 3.1 City shall, with respect to transmission services which shall be reserved for a specified period (the Reserved Period) under this Schedule, pay to CEI monthly-1 3.11 an amount calculated separately for each Interconnection Point equal to the product of (i) $.72 and (ii) the maximum amount of kilowatts i
which shall have been reserved (the Reserved Quantity) for trans-mission from or to st:ch Interconnection Point during the Reserved 3
Period; provided, however, that (a) if at any time during said i
Reserved Period (i) the amount of power *and energy actually delivered at the delivery point, (ii) adjusted for losses thereon from or to the 1
Interconnection Point for which such transmission service shall be so reserved, shall exceed (iii) the actual amount of power and energy received at the receiving point, the excess shall be deemed to be, and, d
if in excess of Allowable Inadvertent Power, shall be paid for by City b
as an ;nscheduled inadvertent power delivery under Section 4.3.2 of i
the Agreement of which this Schedule is a part.
3.12 there shall be added to any amount calculated pursuant to any of the J
}
foregoing provisions of this Section 3.1 an amount in dollars suffi-cient to reimburse CEI for any amounts paid or pav:'In it as sales, i
excise or similar taxes (other than taxes based up o 0+ 'asured by netincome)inrespectofthetotalamountpayableL,tievesandto 1
CEI, after provision for such taxes to realize the net amount payable by City under such provisions, subject to the provisions of Article 12 i
of the Original Agreement of which this Service Schedule "C" is a part.
f l..
^ <
" ^
s
~
i
}
IN WITNESS WHEREOF, the Parties have caused this Agreement to this Service i
Schedule C " Transmission Services", to be executed by their duly authorized
}
officers this
'dav of
, 1977.
3 i
THE CLEVELAtiD ELECTRIC ILLUMIflATING COMPANY Attest:
By 1
I i
CITY OF CLEVELAND t
Attest:
By e
4 4
i
. t
w s
nttachment D I$u 6ifu, of Cicuchuth 1
{
DENNIS J. KUCINICH MAYOR COP AnThes N T OF PusLic utetsviss
,20, LAMrssor AvsNut JULIUS clAccl A CLEV E LAND. OMIO d e,e December 15, 1977 Mr. Richard A. Miller Executive Vice-President The Cleveland Electric Illuminating Company P. O. Box 5000 Cleveland, Chio 44101
Dear Mr. Miller:
Pursuant to the C.E.I. - Cleveland Agreement for the installation and operation of 138KV Synchronous Interconnection, dat'd April 17, 1975, e
I again ask to convene a meeting of the Administrative Cc=mittee to pursue with all due dispatch perfection of Service Schedule "C", Transmission Ser-vices, commonly referred to as wheeling services.
My letter of November 18, 1977, to Mr. William Bingha=, of your co=pany has not extracted any response to date.
Mr. Bingha=, by letter of November 22, 1977, infor=ed the City that the Illuminating Ccepany will not be able to assist the City in any insulator problems on the 138KV Inter-connection line. Hewever, no cention of the Service Schedule "C",
Trans-mission Services, was incorporated in Mr. Bingha='s communication.
Also, this appears to be an appropriate ti=e to begin discussiens for a seL~.1d 138KV Synchronous Interconnection. With the withdraw of the City since April 1, 1977, fecc the gene' ration end of the Energy industry, except for peakira, a secc6d 138KV Synchronous Interconnection is essential to protect the customers of the City.
-Therefore, to accomplish the perfection of Service Schedule "C" and start a second 13SKV Synchronous Interconnection, the City is prepared I
to take any and all necessary legal steps possible.
Very truly yours, gh IR 6, APPROVED:
[
.T /
GeorEe S. Porok, P.E.
d r
i W
/1 Systems Engineer Way.and R. Criste1Y, Commissioner Division of Light and Power Div sion of ight and Power
/*[
~
cc.
Dennis J. Kucinich, Mayor 4
Julius' Ciaccia, Jr., Actins; Director Robert D. Hart, Esq.
De artm' t f'
blic Utilities Sesler Titus File
,h Jack M Schulu n, Director t
Departaent of Law t
i l
CSP:sm l
l
6 3..
Attachment E o
.g i[ THE CLEVELAND ELECTRIC
,uu
~u,~o.<oc. ru.uc souAat. cavru~o. os,o ILLUMIN ATING C0MPANY nur o~, mo on.inc I
MAIL A00AESS: PCST OFFICE 80x $000. CL,VfLAND. OHIO 44101 Serving The Best Locat>on in the Nation December 22, 1977 GeorEe S. Pofok, P.E.
System Engineer Division of Light & Power 1201 Lakeside Avenue Cleveland, Ohio M114
Dear Mr. Potok:
your letter dated December 15 addressed to Mr. B. A. Miller, which we received yesterday, December 21, 1977, has been referred to me.
Last night's unfortunate experience of MELP confir=s previous discussions that we had with representatives of the City that it should provide a second interconnection between the two systems. Therefore, please call me to arrange a mutually convenient time to discuss a second 1^4 hY synchronous interconnection. I will be in town the rer.ainder of the year. It would be helpful if you could provide in advance of such a r,eeting the preliminary ergineering plans of the City for the secor.d 138 kV interconnection.
Shortly after the first of nert year The Illu=inatir4 Cecrany vill file a " Service Schedule C - Trsnamission Services" with the Federal Energy Regulatory Cou=ission which would beccce a part of the agree =ent dated April 17, 1975, between The Cleveland Electric Illu=inating Ccepany and the City of Cleveland. That Service Schedule vill be essential.ly the sa:e as the draft of June 27, 1977, which was submitted to you at that time modified to reflect current costs.
Very truly yours,
(
~
~
h,L mh k+m Willit= R. Eing'--
Principal Rate Engineer l
ec: City of Cleveland Law Department