ML19330B299
| ML19330B299 | |
| Person / Time | |
|---|---|
| Site: | Comanche Peak  |
| Issue date: | 07/28/1980 |
| From: | Horin W, Reynolds N DEBEVOISE & LIBERMAN, TEXAS UTILITIES ELECTRIC CO. (TU ELECTRIC) |
| To: | Citizens Association for Sound Energy |
| References | |
| ISSUANCES-OL, NUDOCS 8007310328 | |
| Download: ML19330B299 (36) | |
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,( July 28, 1980 !
UNITED STATES OF AMERICA !
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NUCLEAR REGULATORY COMMISSION g BEFORE THE ATOMIC SAFETY AND LICENSING BOARD M s C y JUL 2 9G80 * $I)
In the Matter of ) '
- f i3, se
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) '-ar2 4 Service TEXAS UTILITIES GENERATING ) Docket Nos. 50-445 6'"Ch COMPANY, -et al. ) 50-446 'v/ )
)
(Comanche Peak Steam Electric ) (Application for Station, Units 1 and 2) ) Operating License)
APPLICANTS' ANSWERS TO CASE'S FIRST SET OF INTERROGATORIES AND REQUESTS FOR CLARIFICATION Pursuant to 10 C.F.R. 2.740b(b), Texas Utilties Generating Co.', et al. (" Applicants") hereby submit answers to " CASE First Set of Interrogatories to Applicant" (" Inter-rogatories"), dated July 7, 1980. With respect to CASE's requests for production of documents, Applicants will respond pursuant to and on the schedule provided in 10 C.F.R. 62.741(d).
- Throughout this proceeding Applicants have pursued and will continue to pursue a prompt and fair resolution of all issues properly raised pursuant to the NRC Rules of Practice. Thus, during the discovery phase of the proceeding, Applicants will respcnd fully and expeditiously to all discovery requests which seek information relevant to the issues being considered. However, in order to facilitate our good faith efforts to comply with discovery requests, the parties seeking discovery must assure that their requests are set forth with reasonable specificity and scope, consistent with the NRC Rules.
80 07310 2L243I G- ._.
With regard to CASE's first discovery request, Applicants must seek clarification as to the scope and subject matter of certain interrogatories and requests to produce documents.
Applicants request that CASE respond to this request for clarification promptly so that discovery may continue on a timely basis. */
APPLICANTS' ANSWERS TO CASE INTERROGATORIES AND REQUESTS FOR CLARIFICATION Each ir cerrogatory or request to produce is identified by item number, corresponding to the numbers in CASE's July 7, 1980 Interrogatories.
A. CONTENTION 5 Ouestion:
- 1. Supply copies of each and every Deficiency and Disposition Report (DDR) log.
- 2. Supply copies of each and every Non-Conformance Report (NCR) log.
- 4. Supply copies of each and every Corrective Action Request (CAR) log.
- 6. For Items 1 through 5, supply a signed state-ment that each and every log requested has been supplied, and that there are and have been no others.
- 7. For items 1 through 5, supply full-size, rather than reduced, copies of each.
- / The Board has urged the parties to conduct discovery with " reasonable promptness". See " Order Subsequent to the Prehearing Conference of April 30, 1980" (June 16, 1980) at 18. Applicants intend to comply with the Board's direction and assume that all parties will do the same.
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- 14. If the answer to item 12 is yes, supply copies of all publications or information by all such departments regarding the quality control, quality assurance, safety, workmanship, and method by which the plant is being built.
- 18. Supply copies of any and all-progress reports to the public regarding CPSES, including information provided at the CPSES information center.
- 19. Supply copies of all quality control manuals, folders, pamphlets, and any o'ther printed information regarding quality control, including procedures for quality control, not only current but the originals and all revisions.
- 22. Supply copies of all quality control specifications manuals, folders, pamphlets, and any other printed information regarding quality control specifications, not only current but the originals and all revisions.
- 23. Supply copies of all manuals, folders, pamphlets, and any other printed information regarding quality assurance, quality assurance specifications, and quality assurance procedures, not only current but the originals and all revisions. If this information has been supplied in response to item 19, so state.
- 26. For items 14, 17, 18, 19, 22, and 23, supply full-size, rather than reduced, copies of each.
Answer:
Applicants will respond to these requests for production of documents pursuant to and on the schedule provided in 10 C.F.R. $2.741(d).
Question:
- 3. Supply copies of each and every Field Request for Engineering Action (FREA) log.
- 5. Supply copies of each and every Concrete Pour log.
Answer:
Applicants do not maintain any records as described by CASE in Interrogatory 3 as " Field Request for Engineering Accion log"
_4-or in Interrogatory 5 as " Concrete Pour log." Clarification is necessary as to those requests including the specific nature and substance of the information sought.
Question:
- 8. How many internal audits have the Applicants performed on I rown and Root?
Answer:
There have been eigt.; audits of Brown and Root by Applicants. Four of these audits were performed on Brown and Root in Houston, and the other four on Brown and Root at Comanche Peak.
Question:
- 9. How many audits have been performed by insurers (industrial risk, builder's risk, etc.) on work done at Comanche Peak?
- 10. How many outside or sub-contractor evaluations, studies or audits have been conducted (by sub-contractors or agents of sub-contractors or by consulting firms or others, etc.)?
Answer:
Applicants object to these interrogatories as being overly broad and as requesting information not relevant to the matters at issue in Contention 5. Further, to respond to such vague interrogatories would cause undue burden and expense.in researching voluminous materials. Accordingly, Applicants request that CASE specify the topics of the evaluations, studies or audits with which CASE is concerned, i
I the relationship of such studies, evaluations or audits to
, Contention 5 and, with respect to Interrogatory 10, the
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sub-contractors or consulting firms on which Applicants might have performed the audits, evaluations or studies which CASE seeks.
Question:
- 11. Regarding items 8 through 10, provide the following information:
(a) What was the purpose of the audit, evaluation or study?
Answer:
Item 8: To review implementation by Brown and Root of appropriate regulatory requirements. See response to Interrogatory 11(d).
Items 9 and 10: See response to Items 9 and 10.
Question:
(b) What were the conclusions of the audit, evaluation, or study?
Answer:
Item 8: All findings were resolved. See reponse to Interrogatory 11(d).
Items 9 and 10: See response to Items 9 and 10.
Question:
(c) Who instituted the audit, evaluation or study?
Answer:
Items 8: Texas Utilities Generating Company Quality Assurance Division.
Items 9 and 10: See response to Items 9 and 10.
Question:
(d) Where is the audit, evaluation, or study kept so that we can review it?
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Answer:
Item 8: The audits are kept in Texas Utilities
' Generating Company's Dallas offices.
An opportunity to review the audits will be afforded as set forth in Applicants' response to CASE's requests to produce to be filed pursuant to and on the time schedule provided in 10 C.F.R. $2.741(d).
Items 9 and 10: See response to Items 9 and 10.
Question:
- 12. Do Brown & Root, Texas Utilities or any of its sub-sidiaries or companies, or any of the other owners of CPSES have a public relations department for the Comanche Peak plant (or if not specifically for the Comanche Peak plant, which provide information re-garding the plant)?
- 13. If the answer to item 12 is yes, itemize the specific companies which have such departments and state the extent of and the type cf information supulied by each. (For example, is there a specific public relations department for CPSES? Does a particular company provide information as a part of its over-all public relations department's work?
Do the companies, or a specific company, prepare special public relations materials specifically for the CPSES? If so, what type of information?)
Answer:
Applicants object to Interrogatories 12 and 13 as seeking information which is irrelevant to any matter at issue in Contention 5. Thus, the requested information is beyond the scope of permissible discovery under the NRC Rules of Practice, 10 O.F.R. {2.740(b)(1). Nonetheless, in the interest of reaching an expeditious conclusion to discovery, the Applicants respond to Interrogatories 12 and 13, as follows.
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Dallas Power & Light Company ("DP&L"), Texas Electric Service Company ("TESCO"), Texas Power & Light Company
("TP&L") and Texas Utilities Services Inc. ("TUSI") each have general public relations departments. Brown and Root has a general public relations department in its Houston offices. Brown and Root does not have a public relations office at the Comanche Peak site.
Communication with the public regarding electric utility and Texas Utilities Company System matters is carried out through the communications departments of t'he three operating companies (DP&L, TESCO, TP&L). Part of that communications effort includes the Comanche Peak plant.
Information on Comanche Peak supplied to the public by the operating companies is in both oral and written form.
Handout material (fact sheets, pamphlets), speakers and programs'on Comanche Peak a.*e made available through the operating companies. News releases regarding current events relating to Comanche Peak are issued. In general, the printed and prepcred material on Comanche Peak available to the public is a joint effort involving the operating, generating and service companies. There is not a special and separate Comanche Peak public relations department.
Comanche Peak matters are part of each operating company's overall communications function.
Texas Utilities Generating Company ("TUGCO"), the principal licensee and operator of the Comanche Peak plant,
has one person who maintains an information office in Glen Rose for the purpose of communicating with the citizens in the Glen Rose /Somervell County /Granbury/ Hood County area regarding Comanche Peak. Information available to the public from this office is generally the same material that is used by the th. ee operating companies. TUSI assists the i three operating companies and TUGCO in public communications related to Comanche Peak. The primary responsibility of TUSI in Comanche Peak communications is to keep the owner companies (who have the responsibility for communicating with the public) up-to-date and apprised of construction, licensing and operations progress, events and issues.
Question:
- 15. Was there another method of documentation prior to use of deficiency and disposition reports (DDR's)?
Answer:
No.
Question:
- 16. If the answer to item 15 is yes, what was the method of documentation?
Answer:
Not applicable.
Question:
- 17. If the answer to item 15 is yes, supply copies of each and every log regarding such method of documentation.
I l Answer:
! Not applicable.
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Question:
- 20. Are there any audio tapes or video tapes of any of the information referred to in item 19?
Answer:
.Yes, one video tape was prepared.
Question:
- 21. If the answer to item 20 is yes, where are such tapes kept so that we can review them?
Answer:
The tape is in the Dallas offices of Texas Utilities Generating Company. Applicants will provide an opportunity to review the tape pursuant to and on the schedule pro-vided in 10 C.F.R. $2.741(d).
Question:
- 24. Are there any audio tapes or video tapes of any of the information referred to in items 22 and 23?
Answer:
See response to Interrogatory 20.
Question:
- 25. If the answer to item 24 is yes, where are such tapes kept so that we can review them?
Answer:
See response to Interrogatory 21.
B. CONTENTION 25 Question:
- 27. Has Texas Utilities or any of its subsidiaries or companies signed a letter of intent to negotiate the sale of an interest in CPSES to Tex-La Electric Cooperative?
Answer:
Yes.
Question:
- 28. If the answer to item 27 is yes, supply complete details of such negotiations, including date of such letter of intent, copy of such letter of intent, percentage interest involved, expected date of sale, expected value of percentage to be sold, expected sales price of percentage to be sold, method of payment by buyer to seller, and any other pertinent details.
Answer:
Texas Power & Light Company ("TP&L") signed a letter of intent dated May 6, 1980, with Tex-La Cooperative of Texas, Inc. (" Tex-La") to enter into negotiations for the sale by TP&L to Tex-La of an undivided ownership interest in Comanche Peak and associated transmission facilities.
The letter of intent states that the proposed sale to Tex-La would involve an undivided interest as a tenant in common not to exceed 4.35%, at a purchase price to be calculated as set forth in the letter. The letter states the intent to complete the definitive agreement (s) (as defined in the letter) not later than by November 1, 1980.
A copy of the letter of intent is attached hereto.
Question:
- 29. Has Texas Utilities or any of its subsidiaries or companies made overtures to or had discussions with any other party or company to negotiate the sale of an interest in CPSES?
Atswer:
No.
Question:
- 30. If the answer to item 29 is yes, supply complete details (as outlined in item 28) of such over-tures or discussions.
4 . .
Answer:
Not applicable.
Respect u y submitted, Nichol Sl. Reynolds 1 A
{hY bis 0, Y%O Willi'am A. Horin DEBEVOISE & LIBERMAN 1200 Seventeenth Street, N.W.
Suite 700 Washington, D.C. 20036 Counsel for Applicants i
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Dated: July 28, 1980 i
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STATE OF TEXAS COUNTY OF DALLAS ) .
Homer C. Schmidt, being duly sworn, deposes and says:
That he is Manager Nuclear Services. Texas Utilities Services, Inc., and knows the contents of the foregoing Applicants' Answers to CASE's First Set of Interrogatories and Request for- Clarification; that the same is true of his .
own knowledge except as to matters therein stated on information and belief, and as to that, he believes them to be true. .
S1(CRM to and subscribed before ne on this 28th day ~
of July, 1980..
L iiotary Puolic J
fty Consission Expires: April 4, 1981 (SEAL)
This document is a telecopy. Applicants will furnish the original by separate cover.
UNITED STATES OF AMERICA NUCLEAR REGULATORY COMMISSION BEFORE THE ATOMIC SAFETY AND LICENSING BOARD In the Matter of )
)
TEXAS UTILITIES' GENERATING ) Docket Nos. 50-445 COMPANY, -et al. ) 50-446
)
(Comanche Peak Steam Electric ) (Application for Station, Units 1 and 2) ) Operating License)
CERTIFICATE OF SERVICE I hereby certify that copies of the foregoing " Applicants' Answers To CASE's First Set Of Interrogatories And Requests For Clarification," in the captioned matter were served upon the following persons by deposit in the United States mail, first class postage prepaid this 28th day of July, 1980:
Elizabeth S. Bowers, Esq. Chairman, Atomic Safety and Chairman, Atomic Safety and Licensing Appeal Panel Licensing Board U.S. Nuclear Regulatory U.S. Nuclear Regulatory Commission Commission Washington, D.C. 20555 Washington, D.C. 20555 Marjorie Ulman Rothschild, Esq.
Dr. Forrest J. Remick, Member Office of the Executive Atomic Safety and Licensing Legal Director Board U.S. Nuclear Regulatory 305 E. Hamilton Avenue Commission State College, Pennsylvania 16801 Washington, D.C. 20555 Dr. R.tchard Cole, Member David J. Preister, Esq.
Atomic Safety and Licensing Assistant Attorney General Board Environmental Protection U.S. Nuclear Regulatory Division Commission P. O. Box 12548 Washington, D.C. 20555 Capitol Station Austin, Texas 78711 Chairman, Atomic Safety and Licensing Board Panel Mr. Richard L. Fouke U.S. Nuclear Regulatory CFUR Commission 1668B Carter Drive Washington, D.C. 20555 Arlington, Texas 76010 1
Arch C. McColl, III, Esq. Mr. Geoffrey M. Gay 701 Commerce Street West Texas. Legal Services Suite 302 100 Main Street (Lawyers Bldg.)
Dallas, Texas 75202 Fort Worth, Texas 76102 Jeffery L. Hart, Esq. Mr. Chase R. Stephens 40T.1 Prescott Avenue Docketing & Service Section Dallas, Texas 75219 . U.S. Nuclear Regulatory Commission Mrs. Juanita Ellis Washington, D.C. 20555 President, CASE ,
1426 South Polk Street Dallas, Texas 75224
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William A. Horin cc: Homer C. Schn.idt Spencer C. Relyea, Esq.
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i TEXAS POWER & LIGHT COMPANY 1511 Bryan Street
- P.O. Box 226331
- Dallas, Texas 75266 .
May 6,1980 Tex-Lc Electric Cocperative of Texcs, Inc.
P. O. Box 398 Guitmen, Texes 75783 Gentlemen:
This letter of intent will confirm recent discussions between your representatives cnd those of Texcs Power & Light Compcny concerning settlement of vcrious controversies, cnd wi!! serve to set forth the understcndings recched to resolve these differences, including the sole by Texcs Power & Light Company (TP&L) do Tex-La Electric Cocperative of Texcs, Inc. (Tex-Lc) of cn undivided ownership interest in the Comenche Peck Stecm Electric Stcrion under E
[ constn;ction in Hood cnd Somervell Counties, Texas, including both Units I cnd 2,
- (
nuclecr fuel cnd cssociated 345 kv trcnsmission fccilities (Project).
Subject to the execution of a Joint Ownership Ageement cnd Power Supply Agreement, hereinafter eclied " definitive cgreements," between the varicus affected pcrties, the undersigned intend that such agreement (s) shcIl include the following terms cnd conditions: 1 1.
TP&L will sell and Tex-La will purchese es a tencnt in common cn undivided interest net to exceed 4.35% in the Project. The purchcse price will be the scme l
undivided percentage cs the ownership percentcge of the total costs of constructicn cnd fuel for the Project to the date of closing (Construction Costs), plus interest',~
l ccicuicted monthly, en Construction Costs incurred from the Icst dcy of the month in which the particulcr Construction Cests were paid to the dcte of closing, compounded cnnucily, et c nte equct to TP&L's weighted cost of eccitol for ecch I
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[ such yect (including the cost of the Company's most recent long-term debt cnd t preferred stock issues and the octucI rate of return on average common equity, ecch determined for each calender yect, es of the prior calender yect), plus TP&L's cetual federci income tcx licbility cssocicted specificcIly with the gain reclized on the interest cnd development cost component of the purchese price on the sale to Tex-La. Tex-La will also pay TP&L ct closing $326,250 (bcsed upcn a 4.35%
undivided ownership interest), representing its share of costs in developing the Project which cre properly o!!accble but not specifically charged to the Project.
After closing, Tex-La shall pcy its undivided ownership interest percentage of costs therecfter incurred for the Project, including without limitation, costs of construction, fuel, operction cnd maintencnce.
11.
e On cnd cfter commercict operation of Unit #1 of the Project, Tex-Lo shcIl n
receive a percentcge, equal to its undivided ownership percentege, of the net power cnd net energy genercted by the Project (Generation Entitlement), less trcnsmission lesses. Tex-Lo expects cnd is expected to have utility responsibility for its own system, cnd recognizes its responsibility to provide instclied reserve ccpacity cnd spinning reserves to firm up its Generation Entitlement. For the considerations hereinciter set forth, TP&L shcIl mcke avcilcble from its system rescurces reserve cccccity and bcekup energy to provide Tex-Lc's reserves for its l
Generation Entitlement-from the Project.
- c. Tex-Lc shcIl maintain reserve cepocity cnnucily in en cmeunt equal to Tex-Lc's Retcined Ccpacity (cs defined in Part III herein) times the percentcge of reserve ccoccity which the Texcs Utilities System compcnies s
- maintcined on their coIIective Systems during the preceding yecr.
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e b. TP&L shcIl provide and Tex-La shall pcy . ecch month for such
- cmounts of reserve ccpccity ct a price based on the embedded weighted overcge cost per kw for cil TP&L generation investment including its interest in generation fccilities owned jointly with others multiplied by TP&L's cppropriate fixed chcrge rate, ecch determined cs of the end of the prior eclender yect, divided by twelve. In cddition, Tex-La shall pay for operating costs cssocicted with its spinning reserve requirement.
- c. When bcckup energy is required by Tex-La to repicce ioss cf Retained Ccpccity frem the Project, the price of such bcckup energy to be paid to TP&L by Tex-La shcIl be Tex-Lc's pro rata shcre of TP&L's cetuct cost incurred to repicce the cggregate of TP&L's and Tex-Lc's simultcneous loss of generction from the Project for a given time period.
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- i. During the ectly yecrs of commercial operation of the Project, it is anticipcted that Tex-Lc's Generction Entitlement will exceed its ennuct bcse load power cnd energy requirements. Therefore, TP&L cnd Tex-Lo intend to estchlish a schedule of cnnuci cmounts of ecpacity from the Project to be retained by Tex-La for its own use (Retcined Ccpacity) cnd cnnual cmounts of surplus ccpccity to be purchcsed from Tex-Lc's Generation Entitlement frem the Project by TP&L (Surplus Ccpocity), genercily in cccordcnce with Exhibit A cticched hereto cnd made a pcrt hereof. T.ex-Lc's Reicined Ccpacity will be credited continuously cgoinst its load, in cecordence with 11 cbove. TP&L shall be obligated to pcy '
l annucily for such scheduled Surplus Ccpacity regardless of the net output of the Project. TP&L will also purchese from Tex-La cil energy cetucily genercted with Surplus Ccpacity (Surplus Energy). The price of such Surplus Ccoccity cnd Surplus s
r Energy during each yect ;,hcIl be computed in accordence with Exhibit B cttached 4
( hereto end mcde c part hereof.
IV.
During the periods of trici operation of either generating unit of the Project, TP&L will purchase the energy cssociated with Tex-Lc's Generation Entitlement et a price equal to the cvercge of TP&L's avoided energy costs cnd Tex-Lc's costs of energy cssocicted with its Generction Entitlement during ecch hour of test operations of the Project.
V.
It is understood thct TP&L shcIl hcve sole discretion for the scheduling cnd dispatching of Tex-Lc's Generation Entitlement from the Project in ecccrdcnce with the undersignec's scheduling and dispatching procedures. In the event TP&L f voluntcrily cecses to operate or reduces the output from the Project beccuse of the k availchility of lower cost energy from other sources, TP&L will mcke cvcilcb!e to Tex-La the cmount of energy which the Project would recsoncbly be enticipated to provide to Tex-La hcd its output not been reduced, at c cost equal to the cost that would have been incurred by Tex-La if the unit hcd continued to operate at its recsoncbly enticipated operating level.
VI.
In order to effect the sale of cn undivided interest in the Project, it will be necesscry to cmend the.-Joint Ownership Agreement between Dalles Power & Light
~
Company, Texcs Electric Service Company, Texcs Power & Light Company, Texcs Municipal Power Agency cnd Brczcs Electric Power Cooperctive, Inc. for Comanche Peck Stecm Electric Station, cnd such sale is subject thereto. It will
- also be necessscry for Tex-La to join in such cgreement, or a similcr cgreement, to m
The Project Mcncger
.[s essume its responsibilities cnd obligations cs on owner.
engcged in the picnning, construction and operation of the Project is Texas Utilities Genercting Compcny, su'bject to the direction of en Owners' Committee composed of one representoiive from ecch owner of the Project. As en owner of the Project, Tex-Lc will pay to the Project Mencger a management fee equal to 5% of its portion of all costs of operation cnd fuel relcted to Retained Ccpacity es covered in the Joint Ownership Agreement.
Vll.
In all respects not sepcretely cddressed in this Letter of Intent, it is the intent of Tex-La cnd TP&L to structure cny subsequent cgreement(s) reicted to the ownershm. construction end/or operction of the Comenche Peck plant consistent with the provisions of the aforescid Joint Ownership Agreement.
f' Vill.
r k- The undersigned contemplete that definitive cgreement(s) shcIl contain provisions through which TP&L will provide Tex-Lc with bulk trcnsmission cnd distribution services to Tex-La's points of delivery (or its Perticipcnts' points of delivery) from TP&L for delivery of Tex-Lc's Retained Ccpccity from the Project, including bcckup power cnd energy from TP&L System resources when genercting unit (s) at the Project cre out of service. Such trcnsmission cr.d distribution services shall be provided on terms that fully compenscte TP&L for its costs, including c recsencble.4eturn on investment, cnd line losses; such terms will recognize Tex-Lc's partial ownership of trcnsmission fccilities common to the needs of Tex-La cnd TP&L cnd will further recognize Tex-Lc's use end obligction to
! pcy for use of trcnsmission fccilities jointly owned by the other cperating
,r' compcnies of the Texcs Utilities System cnd others.
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-g-IX.
[
%_ TP&L and Tex-La anticipate that Tex-La's Retained Capacity will satisfy only a portion of Tex-Las i total monthly power and energy requirements. For tne life of the contemplated definitive agreement (s), at Tex-La's request, TP&L intends to provide Supplemental Power and Energy in excess of Tex-La's Retained Capacity ,
and other generating resources in amounts necessary to satisfy the remaining lood '
requirements of Tex-La's porTicipants, subject to reasonable provisions as to advance notice and payments associated with added facilities similar to the N provisions in the existing agreement between Tex-La and TP&L. Such Supplemental Power and Energy will be provided under a partic! requirements wholesale tariff to be promulgated by TP&L subject to approval by the Public
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i Utility Cemmission of Texas and/or any other regulatory authority having jurisdiction. In developing this tariff, TP&L's objective shall be to allocate costs C based on TP&L's generating resources which are to be used to provide Supplemental Power and Energy after crediting Tex-La's generating resources against TP&L's generating resources which are utilized on a comparchie basis. All additional cost allocations will be consistent with the methodology most recently cpproved by the Public Utility Commission of Texas and used by TP&L in developing other wholesale and retail tariffs during the same time period.
X.
! TP&L and Tex-La recognize that the Agreement between Tex-La cnd TP&L dated October 20,196k, as amended, will require amendment and/or renegotiation pursuant to any definitive agreement (s) that may be executed in conjunction with joint ownership by Tex-La in the Project as contemplated herein.
! XI.
TP&L will not disconnect from, refuse to connect with, or prevent Tex-La or
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[f any entity with which it maintains a connection from estcblishing or maintaining a
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connection with, facilities used for the trcnsmission of electric energy in interstate commerce, by recson of the interstate chcracter of such facilities, unless it determines that any such connection or the intended use thereof is not fecsible under sound engineering practice or that TP&L's costs in connection therewith will cxceed its benefits therefrom, or such connection or the intended use thereof would impair TP&L's system relisility or emergency trcnsmission ecpccity. This is not to imply that TP&L must benefit from a connection; a refusci is vclid, however, where TP&L's net costs exceed its net benefit. In the event that Tex-La or cny entity with which it is connected desires to estchlish, maintcin or modify a connection with fccilities used for the trcnsmission of electric energy in interstate commerce, it shcIl first obtcin c non-jurisdictional order, cppliccble to TP&L cnd
{ other members of the Texcs Utilities Compcny System, under Section 204 of the Public Utility Regulatory Policies Act of 1978.
XII. .
Tex-La expects to meet its public utility responsibilities by the construction of generation cnd trcnsmission facilities including joint ownership of future facilities with TP&L and other electric utilities, or by the purchese of power cnd energy. In view of the cgreement(s) contempleted herein, cnd poss ble cgreements i
between Tex-Lc cnd others, it is intended that both Tex-La cnd TPLL shcil be free, subject to provisions of.RI herein, to plcn, construct, cnd own such generction cnd transmission facilities cs it mcy elect. TP&L cnd Tex-Lo will consult and cdvise es to proposed facilities cnd jointly picn such facilities cs seems cppropriate to achieve economies cnd avoid unnecessary duplicction of fccilities cnd in keeping g t with ecch Pcrty's plans and responsibilities.
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r it is intended that Tex-Lc's requests for participation in any project to be j
constructed by TP&L shcIl be made prior to cny significent development of the project. Where such c timely request for participation is made, cnd where joint ownership F such project is determined to be mutucily cdventageous, Tex:-Lc's pcrticipabn shcIl be on a mutocIly cgreecble bcsis that fully compensctes TP&L for its costs. In connection with such participction, TP&L will clso intercennect with and offer firm trcnsmission service es may be required for delivery of such power to Tex-La at points en TP&L's system on a bcsis that will ? N compensate TP&L for its costs, including a recsoncble return en its investment.
X111.
The understcndings herein set forth were recched with the intention of settling the controversies between the undersigned cnd Tex-La before the Nuclear
(~ Regulatory Commission (Docket Nes. 50-445A cnd 50-446A) and the Fed &ral Energy Q- Regulatory Commission (Docket No. E-9578). In this connection Tex-La desires to end will cocperate with and use its best' effort to essist TP&L in securing cn opercting license for the Comenche Peck nuclecr units et the ecrliest possible dcte end the avoidence of en entitnast hecring before the Nuclear Regulatory Commission in Docket Nes. 50-445A cnd 50-446A, such efforts to include, without limitation, prompt cmendment of its petition to intervene before the Nuclecr l Regulatory Commissien cnd cppecrences in full support of TP&L cnd other l
members of the Texcs Utilities Compcny System crd such other cssistance es TP&L l
may recsoncbly request. Further, Tex-La will eccperate with cnd use its best efforts to essist TP&L in securing dismissal, on terms satisfcetory to TP&L, of the proceeding in FERC Docket No. E-9578. In cddition, Tex-La will fully suppcrt the g' issucnce of cn order by FERC, in form cnd substence satisicctery to TP&L, under k- Sections 210 or 211 ef the Federal Power Act requiring construction of two direct i
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I current interconnections cs proposed by the four operating subsidicries of Centrei n-and South West Corporation, provided Tex-La is afforded a recsonable opportunity
(
?o purchase o three-year option to participate in the ownership of such facility from the cwner(s) upon recsonable terms and conditions. TP&L will agree to end Tex-La will fully support conditions in the operating license of Comenche Peck in form cnd substance attached hereto cs Exhibit C.
XIV.
Notwithstanding cny provision of this Letter of intent or otherwise, the Confidentiality Agreement dated Octcber 5,1979, shall govern the disclosure of cny discussions between the parties of the subject matter.
XV.
It is further understcod that the provisions of this cgreement cnd of the
- definitive cgreement(s) cnd the obligations of the pcrties thereto mcy be subject to y .
- , centinuing or further reguiction by regulatory bodies having jurisdiction.
If the foregoing correctly sets forth our understandings, plecse sign cnd return a copy of this letter. Upon receipt thereof, the undersigned will be prepcred to enter negotiations so es to complete the definitive cgreement(s) cnd close es soon cs prccticcble with the view of completing the scme not later then November ,
1,1980. By the execution of this cgreement, you agree to use your best efforts to l
secure (i) cpproval of this agreement by your member systems en or before Mcy 8,
( 1980, (ii) interim fincncing on or before October 30,1980, (iii) permanent 'fincncing i
! by the Rural Electrificction Agency, (iv) certifi'cction cnd/or recertification by the Public Utility Commission of Texcs cnd (v) such other matters es mcy be necesscry to ccrry out the intent of the parties cs expressed herein.
I I f l
, p '
l D-
' -aep I~ TEXAS POWER & LICHT COMPANY ,
1 By. _ _
^
~ _ . - - . -
, , Presicent ACCEPTED THIS - 5 day of
. . . ,1980:
TEX-LA Fi FCTRIC COOPERATIVE OF itXAS, INC.
.f .
,p By s/Acr/&
f For and en'Behcif of:
Deep Ecst Texcs Electric Cooperative, Inc.
Jesper-Newton Electric Cooperative, Inc.
Rusk County Electric Cooperctive, Inc.
Sem Houston Electric Cooperctive, Inc. ~
f' Cherokee County Electric Cooperative Associction
( Wood County Electric Cooperative, Inc.
Houston County Electric Cooperative, Inc.
l
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(
- TZX-LA 3.IT.U2iED CAPACITI AND SURPLUS CAPACI""? l gs AS PERCECAGE OF TII-LA GENERATION DEIFNNT N
5..
' UNIT 2 UNIT 1 Tex-La Surplus Capacief Tex-La Recained Cacaci y_
Sucplus to S GCap Re+-'d led Capacit-r to TP C 0 % 100.0%
981 0 100.0 982 0 % 100.0%
0 100.0 983 .
12.5 87.5 12.5 87.5 384 12.5 87.5 12.5 87.5
>355 '
25.0 75.0, 25.0 75.0 ,
>986 37.5, 62.5 37.5 62.5 (957 37.5 62.5 37.5 62.5 L9883 50.0 f 50.0 50.0 50.0 19&b 62.5 37.5 62.5 37.5 1990 ,
75.0 25.0 75.0. '25.0 1991 75.0 25.0 75.0 25.0 1992 100.0 0 100.0 0 1993 and after Neca: Based upcn ec==erc i =1 cperatien dates of Aucus- 1981 for Unit 1 at:d Ja m " ~f 1983 for Unit 2.
Ccmmercial cperction dctes cre projecticns enly cnd cre subject to change fer a vcriety of recsens, including, but not limited to, cctiens icken by the Nuclect Regulatcry Ccmmission in connecticn with TUCCO's cppliccticn for en cperating license, delcys essccicted with constructicn, etc. The cates en the foregcing tcble cre subject to chcnge ccccrdingly.
s 1
.s.
EZEI3IT 3 T?E' S ENTIT' MENT TO TEX-LA Ci?ACITY AND ENERGY T?E shall pu chase Tex-La's St plus CapacicJ in de 0.1
? cject in acccrdance with the schedule in Exhibit A with de no,_,cv_ng cas s or enarges:
1.1 Caracity Charze. T?E shall pay Tex-La for the capacity
=A as encicla,=-t so pu-dased a =enchly capacity charge calc-'
- p cvided in Section 1.5 below. Menthly Charges will be calenlated .
-.e enc anc b:.llac. us' g a:nual :.:xec cuareas e ceterrc.nec as or o = _*_ e y _ '_ a _ v, a .=_~_ .
r c-= ge payaole R The contnly capacity c-a ge snall .ce a ::xec
(
regardless of the availability of capacity. .
b # --
1_ . 2 Oue_ c 4 m- Ck..c.- = a_ s . m_ _ .- -4_' ' pay #
_ o u a._ 0 y e_ m- 3 Account for the acccunt cf Tex-La that portion of Tex-La's share
-'s-of the Ocera"4 ng Costs of Cc=anche Peak Units 1 and 2, ccher
'sel ancrrication, allocable to the enerr_J entitlenent asscciated with the. Su plus Capacic>- bad--e= bcush back b.v T?E _'_;= Tez-La. -
- C^s s,os*.e -'=" '__c' _
- = e n y cuc =,a s ' - e ' v d e ?- __ Oc.e_=__' e, - .
anc iza-icn, a a [lso included as fixed c'-=~ges under Sec-icts 1.3 e-= ges sca, , .ce taxen anc ,_.c ce,ow, to avoic cup,_ ca::cn sucn in:o acccent only as Ope ar'- g Cests . Fuel a=c :icacicn will be
,r. cens cerec a :_zec c arge.
1.3
- " c"r.u ' s .A---
=1
- T. ' v = /_ C'a- e,e =.= = #c.
- - u oses o# _ u _-4 s f,r
. _4o:.: s c a _,
ce:
k 3 , DG + TG + IG + AVTG + COFG GIG 1.4 Tex-La's .A-' -nl Fi.ced Charee = 3.are for pu poses of this r.za o:.c sn=3 1 oe:
3 ,DC + FC'+ IC + AVTC + ITC GIC 1_ . 5 .
c_...,a
.- - =o - Ca,_,..,,a- a- on c __ v..o :1,7_7 . C', a_ __ g_ ._ ..
v.. an_w._1 .;. C' ,_-a = -a .:- ' .
3 C G7_C :- S*"
. 7
- or c.urt.oses or t e calc.u.z :.ons uncer ::ect:.cns 1.2 s A.
- 1. 4. , and 1. 3 o f this e.tibic :
U.2 - = , #c_ ~w'de V o3ec ,
6 n .a. = TuE ' s A=""'
- 5_1
- 7_ #_.v..= d Cl.c._ e,= _
a Y.. b
-b#s e-N#'o_4 C.S I ""1.=. od c.s , *wv# deC' 4_ Se**#"n -
l
.a* c.~. -
- - a 3_ _o ;' e c - ,
- = T_ ev-I2 ' .e. .i--" = 1 T3 -m_a d C'. _<.-e, e 3.2 .= , " o _
c: t_u._s ex
,_.a, o :.
ca_,culated as provided in Section C = 3_ercen: c: St p,us Capac'. 7 ce .ng ocugat ,cacx cy
...a
~
mag a,e_ _d_'b4-
_- 1. d - '_ ~ ,e -:e w o '. 3-~_ a #u.# _-. .
ca_7 culation is =ade ,
- w -:. e_ =. a aa en__ _=_= c_t _,_ ;__: a_s rc
- _-o g S,co y rev, _ a_n_a_ a a dun' g such ----"S- I period.
a_ -
f e_2_ o c-a _-2, _.- - c..-.
_c_
_ e . A_s ;em uc, _. ,a._
_ = . _ . _c_. _ _-_a_ e. on-.. c.._
a.
-- a _ =e_ _ t, e _ D_ o ;J a c _ _:_: c_a T _a _a m_.a_$ --
A. . __. e _
i T_G a T_ _o q T_ _ 3m .. - s_ -
suca Ennual ye . oC.
7 r
ht i
c::, .sc e a,_ ores anc ::ancc_s e :. axes anc ocner
. . . y A1 s_G = ._3 A u.'.a_ _o;*a .
,- _ au, e _ ._7_ _ _ 1_, _m _.c m_=_-- = s a _l l_o cab ' e _o e
.,e _ '_ d .
= =.c_* 1 _' m'_ a_s d - 3'_ - s ~-_" =- -21_'
COFG = TSETL's To-=1 Cose of Funds in pe cent, calenlaced as p;cvided in Section 1.7 belo-a [n-aly (13)], .
-' ~ o s T* &L ' s ~ e* _e" = 6 a.ve_ a=,=_ e . deo. _ =_"_' _= _ _= 6 d~_~'_-, e s~~h
_ ves~'=_"~m '_- + e- *. _ o.i, se ~. _= .=.~ -'__1 _'- -'- _a s r , ~ = _1 c, e_'_o d .
GT_G = ~__'C - 's aoe__=e=_ = G*_ c s s '. '_c- . _.ves
. e"_ #_- ~~'.e w. ". _ o _i e _~.
- 4, a_ es.
_ac-_4 DC = Tex-La's 3cok Deprecia-ion for the Proj ect facili:ies cur ng_sucn annual per..c c .
.c- u'_ a dur_' -oe su-b .
T_ C = P_ =_' -La ' s N. uc7_.a_= _ 7. " a l_ .A_-- _ _'_
annual period.
I. .
c~..-_ g
.t.
C = ,_ex .a,s insurance :c: ty e .,roj ect .rac _. . ..L c _ es 1
suen
--"=1 per cc.
AVTC = Tex-La's Ad Valoren Taxes and any owher property-re,atec ca:es pa:.c 07 a ez-a anc reasanzo 7 a, _, ccable
- - ,__ e_ ; _ao. g _w_ :- g..c u m,-,n,, c. e_ a_n c . -
u o me . _ j en u v e . _ c.c:
ITC = Ten-La's c mal cost of long-te = debt du--2g such
= - - " = 1 c. e r _.cc.
e G- s s -_= 7_ves -_ c- " _ _
G~_'C = T.en Ta's se'_g"__=d ava_c,a_
-u u e _ _ j ec 2
_.,.c:
__< __a ,s ._
ST = Monthl1 Sales Taxes paid by Tex-La as a result of e_m 4 cA- am a-~3,f
-, a _3- C , 4 _: c
~"
e, .
- -%.e Sala _ c _ et, ec_ ~y
(
L-
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\
.For purposes of this section " Gross ?lant Invest =ent" of T?E l
fy' "d Ter-La in the ?roj ect facilities shall =ean i:s cotal :
e g c: e ~~-- e ; ,., cz. e- e a -- -,
- _- gecu :ac_,; a a-- ,s c.w -u e .4 u- -
%,=v.s- -
, - J
""al*S- # el s ~"o Ck. . , Ca'."..S *#_.S._1.~a ,
( 4 cl " r# # "'6' "-'*
'- S" < '4 s s-" "" --#C--1# #-"--
- -- daSe ------ -- ;
snc.u. nes, arc otner worx:.ne can. ' ca_3 ) o. 3 us . :s _.nvestment caere-o arcar
- 3 C.ye CosO or CcCV.t.at Cns, reOeWa.3.s, accLC' cOs , rep 3 acements l
and =cdifications to the ProjeC fae4iities. "Ncc Deprecia:ed i Inses==ent" of T?E or Tex-La. in the. Proj ec: facilities shall 4 , 4 -a = s 1 a s s ac ~. "I _a =.>
~oss -m,m _ ves e,_ 4. s,_,, u e, . _ .
-- e _e - 4 a- _ u- - -.
book dep:eciation.or a=cr ication, as appropriate.
- ,- ,.: s ._: ..u. ._.- . s re,_,
ss 4_v-- s ,, . -
-./ __n;- s Cos . -_
.- _a 3 in the ? oj ect facilities as of the date of cec =arcial operation shall be calc.. lated pursuant to the 'ollowing fo:--"I o- based on -
p
- g. h- , s act..al weig,need average cost or cae cap: cal specs. _.. :.cally L :S 4 C._,-.4. wo Cw,, s _u c :. . T , Cs e-C
- . _ - SC-_,
4 :4_ e , C_ a -uJ
- w. .. -
4
-- , s . . .
O 00 0. ,.":"c j e C O raC'3~.C'.es a :er W O.y. resp eCO Oc 5"~os s # LVes *""'*"Os sucn care or cu m arc _a_.cr.e a son shall .ce. calc.n.acec purs'-e--: to sncn Cor=u.3a ' cased on z. m ,s at:.'.a3_ we' gn=ec. Cap' Ca3 costs i Cu- Ed
- _.,w-c, g~m u_ ;.,eg
,._ g.
Race Perce.n: We'ek-=d.Ccst Total Cost.of ?$=.ds (1 Leng-Te== Deb (1) (a) (7) = (1) x (4) (10) = (7)
(8) = (2) x (5) (11) = (8) + (1 - CT?i 2:efer a-d 5ccck - (2) (5)
Icuity (3) (6) (9) = (3) z (6) (12') m)
= (9) + (1 - t 1 00*,?.
l t
i I
l
(1) and (2) = weighted s- nal ave: age percen races
.c where:
- 4 t (3), ~- s . ._. ._,. . . _ _, e c _ _ a , __ _. cm n_ _ :-_ cnn_ --
ec.niev. allowed f.n the cos: eces: ra:e case
- a_, co,e_.=__'c o,__ _ cc me u zg_a a_= c~-- o
_ - _ _ c ,
as ac. e. rc=. riate > t_4.e dare of -le sebsecuen:
inves-- ar ,
(4.), (5) and (6) = ce=ponen:s 6f capital s: ue:.- e .
es__., m__ c_av,a at =--_..c___a c Dece.+e e- 3,_
c_= ".*e ._'_c_ 7ea .
(10) + (11) + (12) = (13) total cost of Funds in Perces:
as
-icere: CTR = Co perate Federal and S ate In: cme Tax Race, 4_., C_=,,==,.e,.,.,
- .w -,._,.a.
4 -a_e 6 ed e.
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EXHIBIT C
. CRAFT OF 4/28/80
,- .i
, d- License Conditions For t Comenche Peck Steam Electric Station Nuclear Units Nos. I and 2 ._
efinitions I. " Company" mecns severally cnd jointly Texas Utilities Genercting Company, Dalles Power & Light Compcny, Texcs Electric Service Company, Texcs Power & Light Company, Texcs. Utilities Compcny cnd each other subsidicry, cffiliate or successor compcny engcged in the generction, trcnsmission and/or the distribution of electric power in the State of Texcs.
- 2. " North Texcs Arec" mecns the following Texcs counties: Andersen, Andrews, Angelinc, Archer, Bestrop, Scyler, Bell, Borden, Bosque, Brown, Burnet, Cherckee, Clay, Coke, Collin, Comanche, Cooke, Coryell, Crcne, Culberson, .
i Dalles, Dawson, Delta, Denten, Ecstlend, Ector, Ellis, Erath, Falls, Fcnnin, Fisher, i
- Freestone, Gaines, Glcsscock, Grcyson, Henderson, Hill, Hecd, Hepkins, Houston, Howcrd, Hunt, Jcek, Johnsen, Kcufmen, Kent, Lomer, Lcmpcscs, Leen, Limestene, Loving, Lynn, Mcrtin, McLennen, Midlend, Milcm, Mitchell, Montague, Nacegdcches, Ncycrro, Nolcn, Palo Pinto, Pcrker, Peces, Rains, Reagen, Red River, Reeves, Rockwall, Rusk, Scurry, Schcekelford, Smith, Somerveil, Stephens, Sterling, Terrent, Terry, Tom Green, Trevis, Upton, Vcn Zcndt, Ward, Wichita, Wilberger, Willicmson, Winkler; Wise, Wood and Yeung.
- 3. " Entity" mecns a person, a private or public corporction, a governmental agency or cuthority, a municipality, a cooperctive, or en esscciation owning or cperating or preposing in good fcith to own or operate fccilities for generction of electric power in the North Texcs Area for rescle.
l 4. " Sulk Power" mecns the electric power cnd cttenc'ent energy supplied or l
<~ mcde evcilcble at trcnsmission or subtrensmission voltcge.
k- 5. "Cests" mecn cil copropricte cpercting cnd mcintencnce expenses cnd c!! ownership ccsts where copliccbk.
Policy Commitments I. The Compcny shcil, subject to existing rights of first refusc! of entities not cffilicted with the Ccmpcny, cfford en cppertunity to pcrticipate in the Comenche Peck nuclect units, through ownership in such unit (s) en recsoncble I/
terms cnd eenditions,
~
for the term of the instcnt license, or cny extensien or renewcl thereof, to cny Entity (ies) new withcut genercticn, who mcde c request therefer prior to December 1,1979, to the extent of en cggregcte totc! of 100 Mw, en c bcsis thct will fully ccmpenscte the Ccmpcny fer its ecsts cnd reflect the vclue of units in en cdvenced stcte of constructien. Any joint ownership cgreement f
T implementing the foregoing must be cencluded by . November 1,1980. In~cennection E
with such pcrticipctien, the Compcny clso wili (1) ccnnect with cnd effer trcnsmissien service es mcy be required fer deliverf of such power to such Entity (ies) et a point er points en the Ccmpcny's system cnd (2) in the ecse of Ccmpcny whciescle custemers cequiring ownership under these cenditiens, previde (c) pcrtici requirements wholesale service for the difference between the cecccity ccquired in Comenche Peck cnd the Iced of thct Entity which the Ccmpcny wculd otherwise hcve served et ,wholescle end (b) emergency cnd scheduled maintencnce power end energy to firm up the ecoccity ccquired in Cemenche Peck, pending deveicpment by the ccquiring Entity of instelled reserves er citemete purchcsed reserves, cil en c bcsis thct will fully ecmpenscte the Compcny fer its ecsts, inciuding a recsoncble return en investment.
f
- 2. The Ccmpcny will support requests by Entities fer meinbership in the l(
l
! l/ Provisiens substenticily the scme cs these in the existing joint cwnership 1 cgreement cmong the Ccmpcny, Texcs Municipcl Power Agency, cnd =rczes l Electric Power Cocperctive shcIl be deemed to be recsonchie. l
' " - - * ' w-_-,:- - _ _ , -._ _ _, _
, ,r Tcxes Interconnected Systems (TIS), including requests by cny such Entity hcving a
, k smaller peck lead then cny of the present TIS members, so long es such Entity bcs sufficient generction eccccity to mcke a rec:;encble centribution to the relicbility of bulk power supply. The Compcny will propose, cnd cctively support, the crection cf cne er more cdditienci cicssificctions of TIS membership (which mcy include non-voting membership) bcsed on retienci criteric to efford cecess to dctc, studies cnd recommendatiens to cil Entities who desire it, including these hcving no T
generction er insufficient genercticn to mcke such a recsoncble centributien to relicbility. The Compcny will ciso support requests by quclified Entities for membership in cny other electric utility plcnning crgcnizcticn or power pcci of which the Ccmpc.ny is a member (other then one involving only the Ccmpcny). The Compcny shcIl shcre informatien with other Entities with respect to, cnd shcIl g pcrticipcte with other such Entities through TIS, ERCOT cr other elegtric utility r-L picnning orgcnizcticns in, joint studies end plcnning of future generciten, trcnsmission cnd relcted facilities; provided, however, this conditien shall not cbligcte the Compcny to pcrticipcte in such joint studies or joint picnning (1) unless requested cnd conducted in good fcith cnd bcsed en recsenchly reclistic cnd recsencbly complete dctc cnd projections, (2) unless involving cil other electric utility systems whcse pcrticipction in such joint studies cnd joint picnning is 2
recsenchly required for vciid cenclusiens thereof, (3) unless recsonchly justified en the bcsis of scend er.gineering principles, (4) unless cpprcpricte protection is eccorded proprietcry er other confidential business end fincncici infermetien, cnd (S) unless the costs for such studies cre cfloccted en c fcir cnd equitcble bcsis.
The Ccmpcny will cennect with cnd cocrdincte reserves thrcugh f
- 3. (c).
( the scle end purchese of emergency end/cr scheduled meintencnce bulk power with R
l I - - _
g cny Entity (ies) if cnd when power is cvcilcble en terms that will fully compensate k the Compcny for its ecsts, including c recsencble return en investment to the extent it ccn do so without impciring the service relichility of the Ccmpcny cnd t
other electric systems to which it hcs firm commitments.
(b). The Compcny cnd cny other Entity (ies) who cre pcrties to cn crrcngement described in (c) cbove shcIl frem time to time jointly estcblish the minimum reserves to be instelled end/or provided by ecch pcrty under contrcctuct crrcngements to mcintcin c reserve mcrgin sufficient to provide cdequate relicbility of power supply in cecordcnce with good industry prcetice es develeped in the crec. Unless otherwise c; reed upen, minimum reserve requirements shcIl be cciculated cs a percentcge of ecch such Entity's(ies') estimated net peck locd demcnd (teking into ceccunt firm scles cnd firm purcheses). In no event shcIl the e Ccmpcny be required to mcintcin grecter reserves then the percentcge which
- 7 E results frem the cforescid cciculction.
(c). Each Entity who is c pcrty to en crrengement described in (c) cbove shcIl provide such cmeunts of spinning reserves es mcy be equitcble end cdequcte to cvoid the imposition of unreesencble demends en the other pcrty(ies) in meeting the ncrmal centingencies of opercting its (their) sys em(s). However, in no circumstcnces shcII such reserve requirement exceed the instciled reserve requirement.
- 4. (c). The Cer6pcny shcIl work with other Entities to fccilitcte the exchcnge .of bulk power by trcnsmissicn ever its trcnsmissien fccilities between er cmong two or more Entities with which it is cennected; cnd between cny such Entity (ies) cnd cny entity (ies) engeging in bulk power supply cutside the Ner'h Texcs Arec between whose fccilities, the Ccmpcny's trcnsmission lines cnd other b(
h 4
, - trcnsmission lines form c continucus electricci pcth, provided that (c) permission to i 7:
A atilize such other trcnsmission lines hcs been ebtcined by the prepenent of the i
crrengement end (b) the crrcngements recsoncbly ccn be cecommedcted from a functienci cnd technicci stendpoint. Such trcnsmission shcil be on terms thct fully compensate the Ccmpcny for its ecsts, including a recsencble return en investment.
Any Entity (ies) requesting such trcnsmissien crrengements shcIl give recsencble cdvance notice of its (their) schedule end requirements. The Ccmpany shcil not be required to enter into cny crrengement which wculd impair system relicbility cr emergency trcnsmission ecpccity, it being reccgnized that while seme trcnsmission mcy be cpercted fully locded, other trcnsmissien mcy be fer emergency use end cpercted either unlocded er pcrticily locded. (The foregoing ceplies to cny Entity (ies) to which the Compcny mcy be connected in the future cs well cs those r - to which it is new connected.) ,
E (b). The Ccmpcny shcIl include in its picnning cnd construction progrcms sufficient trcnsmission cepecity es required for the trcnsections referred to in (c) cbeve, previded cny Entity (ies) gives the Ccmpcny sufficient cdvcnce i
notice es mcy be necesscry to cecommedcte its (their) requirements frem c functienci cnd technicci stendpoint cnd that such Entity (ies) fully ecmpensctes the Ccmpcny fer its cests, including a recsoncble return en investment. The Ccmpcny shcIl not be required to construct trcnsmissien fccilities if it finds ccnstraction of
~ ;
such fccilities infecsible, cr if its cests in cennection therewith wculd exceed its l benefits therefrem, or if it finds such would impcir system relicbility or emergency trcnsmissicn ecpccity. ,
(c). In cennection with the performence cf its cbligatiens in (b) cocv ,
I j
( the Compcny shcIl not be foreclosed frem requiring c centributien in cid of .
w 0
5
o
-:. ~ . -
e censtruction or frem mcking crrcngements for coordincted constmetien of future
- trcnsmission lines such thct ecch of the pcrTies to the trcnscetien wculd own en interest in er c segment of the trcnsmission cddition in prcportien to its shcre of the ecs; of the cddition. If the Compcny in the future engcges in joint ownership of trcnsmission lines with cny other Entity, it shcIl not refuse to engcge in similcr trcnsections in ecmpercble circumstcnces with other Entities, subject to the provisions limiting the Compcny's chiigetiens in pcrcgrcph 4(b).
- 5. In cerinecticn with the performence of its cbligctions in peregrcphs 3 cnd 4, the Ccmpcny will not discennect frem, refuse to cennect with, er prevent cny entity with which it mcintcins connections frem estchlishing er maintcining a cennection with, fccilities for the trcnsmissicn of electric energy in interstate commerce, by recson of the interstcte chcrecter of such fccilities unless cny such
- connection er the intended use therecf is not fecsible er its cests in cennection h -
2/
%- therewith will exceed its benefits therefrem er such cennection er the intended use therecf wculd impcir system relicbility er emergency trcnsmissicn ccpecity. It is provided, however, thct cny Entity seeking to estchlish, mcintain er modify a cennecticn with fccilities for the trcnsmissien of electric energy in interstcte commerce shcil hcve first cbicined c ncn-jurisdictienci order, c=pliccble to the Ccmpcny, under Secticn 204 of the Public Utility Reguictcry Policies Act of I 78, er such other exemption cs may be cenicined in the Federci Power Act.
~
- 6. The foregeinr conditions shc!! be implemented in c menner censistent with the cepticcble federci, stcte end iccci stctutes, rules, reguictions cnd judgments cnd crders premulgcted thereunder. Nothing herein shcil preclude the Ccmpcny frem seeking cn exemptien er other relief to which it mcy be entitled I under cpplic:ble icw.
L
-2/ This is not to imply that the Ccmpcny must benefit frem a connection; a refusal is vclid, however, where the Ccmpcny's ner ecsts exceed its net