ML19330C117
| ML19330C117 | |
| Person / Time | |
|---|---|
| Site: | Midland |
| Issue date: | 08/04/1980 |
| From: | Clark H, Leeds V, Mark Miller Atomic Safety and Licensing Board Panel |
| To: | CONSUMERS ENERGY CO. (FORMERLY CONSUMERS POWER CO.), NRC OFFICE OF THE EXECUTIVE LEGAL DIRECTOR (OELD) |
| References | |
| ISSUANCES-A, NUDOCS 8008070578 | |
| Download: ML19330C117 (26) | |
Text
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UNITED STATES OF AMERICA DO NUCLEAR REGULATORY COMMISSION AUG
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THE ATOMIC SAFETY AND LICENSING BOARD
~t Hugh K. Clark, Esquire, Chairman Marshall E. Miller, Esquire, Member i
Dr. J. Venn Leeds, Jr., Member In the Matter of
)
)
CONSUMERS POWER COMPANY
)
Docket Nos. 50-329A
)
50-330A (Midland Plant,
)
Units 1 and 2)
)
MEMORAWDUM AND 0RDER (August 4, 1980)
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On January 13, 1969, the Consumers Power Company (Consumers)
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filed an application for the licensing of two pressurized-water nuclear power reactors, designated as Midland Plant, Units one and two, to be located on Consumers' site on the south side of the Tittabawassee River, in Midland Township, Midland County, Michigan.
After review of matters related to siting, safety and environment, Construction Permits CPPR 81 and CPPR 82 were issued on December 15, 1972, and subsequently amended on May 23, 1973.
The license application was filed before 5105c of the Atomic Energy Act at 1954 was amended to require prelicensing antitrust review.
Under $105c(8), the " grandfather clause", construction permits were issued subj ect to appropriate action as a result of this subsequent antitrust proceeding.
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. At.a. preliminary meeting among counsel for all parties, Justice Hand Staff presented to Consumers.and Intervenors proposed License Conditions which would be acceptable to Justice and Staff as a basis for settlement.
Progress reports from Consumers and Intervenors have been made periodically to the Board.
After extensive negotia-tions, Consumers and Intervenors reached agreement on proposed License Conditions and on a supplemental agreement between these parties for implementation of the conditions and other matters con-carning relationships between them.
Both the proposed License Conditions and the supplemental agreement were submitted to the Staff and to Justice for review.
By letter dated September 6, 1979, the Staff advised the Board that the propcsed License Conditions were satisfactory to the Staff.
The letter further stated that the remainder of the supplemental agreement was under review to insure consistency with the proposed License Conditions, and that the Board would be informed of the outcomeaof this review.
By joint motion of Consumers and the Intervenors, dated September 25, 1979, these parties requested that the Board impose the proposed' License Conditions attached to che, motion.
They further requested that this antitrust proceeding be terminated.
On October-12, 1979,- the Staff filed its response to the said motion.
The' response stated that the Staff's review of the supple-
. mental agreement led it to conclude that it appeared to be consistent i
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. The parties to this proceeding are Consumerr, the United States Nuclear: Regulatory Commission Staff (Staff), the United States Department of Justice (Justice) and a group of intervenors (Inter-venors).
The Intervenors include the following parties:
the Cities of Coldwater, Grand Haven, Holland, Traverse City and Zeeland, the Northern Michigan-Electric Cooperative, Inc., and the Michigan Munici-pal Electric Association.
I In its decision dated December 30, 1977, the Atcmic Safety and Licensing Appeal Board found
"...it reasonably probable that Consumers' activities under the Midland Licenses would maintain the present situation inconsistent with the antitrust laws", ALAB-452, 6 NRC 892 at.1098.
This case'was remanded to the Atomic Safety and l
Licensing Board ~ (Board) for formulation of License Conditions to alleviate the concerns entailed in thac finding.
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.At a prehearing conference on March 2, 1978, the Board urged the parties to meet forthwith to discuss whether there was a reasonable probability of settlement of the issues in she remand proceedings.
The parties met promptly and began serious negotiations looking toward a settlement of all issues.
The Intervenors and Consumers desired to settle not only the proposed License Conditions but all other matters between them.
The Board foresaw that the L
negotiations would take many months, and was reluctant to permit suspension of its proceedings, but with the advice of the Appeal Board, ALAB-468, 9 NRC 436 (1979), hearings were suspended pending
'suchinegotiation.
--4 with the rights, benetics, and entitlements of all parties under the proposed License Conditions.
The response reiterated the Staff's satisfaction with the said conditions.
The Staff supported the aforesaid motion.
on October 15, 1979, Justice tiled its response to the said motion.
The response statedthat Justice had revieved the proposed License Conditions and the supplemental agreement between Consumers and the Intervenors implementing those License Conditions.
Justice agreed that the attachment of such License Conditions to the Midland licenses will assure that Consumers' activities under the licenses will not create or maintain a situation inconsistent with the laws ;
and will allow this antitrust proceeding to be terminated.
The Joint Motion of September 25, 1979 by Consumers and Inter-venors and the responses of the Staff and Justice amount to a stipulation that (1) all parties agree to the imposition of the said License Conditions and (2) such imposition will allow termination of l
of this antitrust proceeding.
The proposed License Conditions have been reviewed in t?.e light of the Appeal Board's decision and instruction (6 NRC 892 at 1098-
-1100).
12ua review included a detailed comparison of these conditions with conditions heretotore imposed to remedy similar situations.
Although the proposed License Conditions are the product of compro-mise, this Board concludes that the proposed License Conditions reasonably address the situations inconsistent with the antitrust laws found by.the Appeal Board.
Also, this proceeding should be terminated
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- with the imposition of the proposed License Conditions.
Accordingly, the Joint Motion of Consumers and the Intervenors, dated September 25, 1979, is granted.
It is hereby ordered that Construction Permits CPPR 81 and CPPR 82, as heretofore amended, be further amended by appending to each of them the antitrust conditions attached to this Memorandum and Order as Exhibit A, and that this proceeding be terminated.
In accordance with 10 CFR 552.760, 2.762 and 2.785, and party may* appeal this Memorandum and Order to the Atomic Safety and Licensing Appeal Board by filing exceptions within ten days after service of this Memorandum and Order.
Briefs must be filed within the times set forth in the Regulations referenced above.
It is so ORDERED.
THE ATOMIC SAFETY AND LICENSING BOARD A
[.VennLeed#,Jr., Member Marshall E. Miller, Member
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Hugh K. Clark, Chairman Dated at-3ethesda, Maryland
'this 4th day of August 1980.
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EXHI3IT A MIDLAND NUCLEAR PCWER STATICN, UNITS 1 AND 2 ANTITRUST LICENSE CONDITIONS I.
DEFINITICNS 1.
As used herein:
(a)
" Licensee" means Consumers Power Company,
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or any successor or assignee of this licensee and includes each present or future subsidiary in which Licensee owns more than 50% interest and any successor there to.
(b)
" Bulk power" means the electric power and attendant energy supplied or made available at transmission or subtransmission voltage for resale.
(c)
" Neighboring entity" means a private or pub-lic corporation, a governmental agency or authority, a municipality, a cooperative, or a lawful association of any of the foregoing, which is all or partially in Licensee's service area'(as defined below) and which meets each of the following criteria:
(1) its facilities, existing or pro-posed in the immediate future following a. proposal for
-- arrangements-under-these-conditions, are economically and technically *easible of interconnection with those of the Licensee;'(2) it owns and operates or proposes to own and operate electric generation, transmission or distribution facilities or has joint ownership participation or contrac tual rights in generation, transmission or distribution facilities operated by others; and (3) with the exception of l
generation and transmission cooperatives, municipalities, governmental agencies or authorities, and associations, it is, or upon commencement of operations, will be a public utility or cooperative and subject to regulation with respect to rates and service under the laws of the State of Michigan or under the Federal Power Act; provided, howeve r, that as to associations, a majority of members of such. association is
-either a public utility or cooperative as discussed in this clause (3) or a municipality, governmental agency or authority.
(d) " Neighboring coordinating entity" means a " neigh-boring entity" which is currently planning its future bulk pcwer supply so that its " total generation capacity" (as defined belcw) will be at least equal to its projected peak load demand and reserve requirements established pursuant to Section 3(a) hereof.
Total generation capacity shall be calculated as the sum of the system's (1) native installed capacity, ( 2) formally executed bulk pcwer purchases (in-cluding purchases under a wholesale tariff) from or arrange-ments with Licensee or other parties for periods of one or more six-month peak load seasons and (3) participation in generating units of Licensee or other electric systems.
An electric distribution system that satisfies its entire peak lead demand with firm pcwer purchases frcm another eleccric system (including an association of which it is a member) does not qualify as a neighboring coordinating entity.
3-(e) " Costs" means all appropriate costs, including a reasonable return on investment, which are reasonably allo-cable to an arrangement between two or more electric systems under coordination principles or generally accepted industry practices.
In determining costs, no value shall be included for loss of revenues from a sale of power by one party to a customer which another party might otherwise serve.
(f) " Net benefits" means that, for each party thereto, the benefits derived from an arrangement exceed its Receipt of compensation which covers Licensee's costs, costs.
in accordance with the applicable tariff or rate filed by Li-censee with a regulatory authority, or established by such au-4 thority pursuant to a final, non-appealable order', shall be deemed to provide Licensee with net benefits as to such arrange-ment; provided that Licensee shall 'not decline to enter into an arrangement during.the pendency of administrative or judicial proceedings involving filings applicable to such arrangement.
Compensation under a tariff or rate applicable to a particular arrangement or a particular party shall not necessarily be deemed to provide net benefits as applied to different arrangements or different parties.
In calculating net benefits from a particular arrangement, Licensee shall also take account of value (pesitive or negative) other than compensation u_n. der a i
rate or tariff, including i= pact on system reliability and risks of forced outage.
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4 I; (g) " Integrated bulk power system" means the inter-connected generation, transmission and sub-transmission f a-cilities used to serve a system's principal load centers.
i (h) " Licensee's service area" means all counties l
in Michigan's Lower Peninsula with the following exceptions:
(1) the entirety of the counties of Berrien, Cass, Euron,
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Lapeer, Macomb, Sanilac, St. Clair and Wayne, and (2) the i
i townships in which Licensee is not franchised to provide i
j electric service in the counties of van Buren, St. Joseph, Monroe, Washtenaw, Oakland, Tuscola and Livingston.
a II.
GENERAL PRINCIPLES i.
j 2(a) The arrangements described in the following sections shall be of the types, and pursuant to terms and conditions, which are consistent with good industry prac-i tice.
The terms and conditions of any indi-idual arrange-A ment shall be on a basis that will compensate Licensee for I
its costs incurred thereby.
No party shall be obligated to enter into an arrangement if on balance there does not ap-i pear to be any demonstrable net benefit to such party arising from that arrangment.
It is recognized that, in any particular arrangement the net benefits may not be equal or identical for each party and that the net bene-fits of an arrangement for a small system or for a system not theretofore engaging in such arrangements may be greater
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N than that realized by a larger electric system or one already engaging in such arrangements.
The relative net benefits to be derived by tne parties from a proposed arrangement shall not therefore affect a decision with respect to parti-cipating in ~ any such arrangement, subject to the other terms and conditions of this license.
(b) Any neighboring coordinating entity entering into any arrangements provided for in these license conditions will be expected insof ar as practicable and in accordance with gcod industry practice - taking into account laws, rules and other restrictions affecting taxation and financing - to grant recip-recal. rights ' and benefits to Licensee, and to undertake recip-rocal obligations with respect to Licensee.
Nothing herein shall require a neighboring ccordinating entity to construct generation facilities except where to de so is necessary to maintain its reserve obligations under Section 3(a) below.
(c) Interconnection, interchange of pcwer, coordi-nation or other arrangements under this license shall be re-quired only if such arrangements wculd not adversely affect Licensee's system operations or the reliability of pcwer sup-
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ply to Licensee's custemers or other electric systems with whom it has prior contractual commitments, and if such ar_
s range =ents wculd not jecpardize Licensee's ability to finance or construct on reascnable terms facilities needed to meet its
own anticipated system requirements, including the sale of j
firm bulk power pursuant to Section 11(a) hereof.
(d) The following conditions shall be implemented in a manner consistent with the provisions of the Federal
_ Power Act and other applicable" regulatory statutes, regula-tions and orders.
All rates, charges or practices in connec-tion with any action taken by Licensee pursuant to this 11-cense, which are subject to the jurisd.iction of a regulatory agency, are subject to the approval of that agency.
Nothing in the foregoing shall be construed to waive any of the Li-censee's rights or protection afforded by law with respect to the retail distribution of electricity in those areas of Michi-gan in which it transants-local business.
Licensee shall not be required to enter into any final arrangement prior to reso-lution 'of any. substantial questions as to the lawful authority of another party to engage in the arrangement.
(e) If Licensee participates in any of the fellcwing arrangements with an association of electric systems, Licensee shall not be obligated to take acccunt of requests or require-ments of members of that association which do not qualify as l
a " neighboring entity", as defined in section 1(c) hereof.
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(f) Agreements implementing the folicwing sections
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shall not impcse limitations upon the use or resale of capacity
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and energy af ter delivery to a neighboring entity, except as may be necessary to protect the reliability of Licensee's system.
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- (g) Licensee shall also negotiate in good f aith interconnection and other appropriate agreements with ai neighboring entity which has bona fide plans to become a neighboring coordinating entity in the immediate future so as to permit such entity the opportunity to participate in arrangements described in the following sections as soon as it becomes a neighboring coordinating entity.
(h) The obligations set forth in the following sections shall be governed by conditions and liminations set fc-th in this section.
III.
COORDINATED OPERATIONS 3.
Cbligation to interconnect and share reserves (a) Licensee shall interconnect and enter into appropriate coordination agreements with a neighboring coordi-nating en'tity which so requests and operate normally in parallel in accordance with good operating practice, provided that a reciprocal plan of reserve sharing is agreed to by a neighboring coordinating entity as provided herein.
Licensee and such entity shall jointly establish and separately maintain the minimum reserves to be installed or otherwise provided under such a plan in accordance with good industry practice.
Further, under such a plan, Licensee shall not be obligated to agree that a party may maintain a minimum reserve percentage ~~
less than Licensee's cwn reserve percentage.
The reserve re-quirement thus established shall be calculated as a percentage of peak icad demand (adjusted for firm power purchases and sales)
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. and, except as provided herein, no_ party to the interconnection shall be required to maintain as its reserve requirement more than such percentage of peak load demand.
If the reserve re-quirements of any party to a reserve sharing plan under this paragraph are increased over and above the' amount such party would be required to maintain without such interconnection, then the other party shall be required to. carry or provide for as a part of its reserve responsibility the full amount of kilowatts of such increase.
If over a reasonable period one system demands emergency support from the other to a disproportionately greater extent than the system delivers such support, by reason of the l
unfavorable reliability experience of the receiving system's generation or transmission facilities, the receiving system shall take all reasonable steps to avoid such demands (e.g.,
by purchasing capacity and energy other than emergency energy, or other reasonable steps).
Each party to any such recipro-t i
cal plan shall maintain such amounts of operating reserves as i
l may be consistent with good industry practice and adequate to i
avoid the imposition of unreasonable demands en either party in meeting the reasonable contingencies of operating its own l
system.
However, in no circumstances shall a party's opera-ting reserve requirement exceed its installe.d_ reserve require-l ment.
(b) Interconnections with neighboring ccordinating entities shall not be limited to lower voltages when higher voltages are requested and available from installed facilities
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of. the party to whom the request is made in the area where the interconnection is desired.
Each party shall maintain control and metering facil11 ties as required for safe and pru-dont operation of the interconnected system in accordance with good industry practice.
(c) The cost of interconnection facilities between Licensee and another system shall be allocated in a manner which takes account of the various transactions for which the
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interconnection facility is to be utilized'.
(d) Except as provided in Section 10(a) infra, interconnections shall be made to the integrated bulk pcwer systems of each entity.
Any party may require that the trans-mission f acilities between the interconnected parties meet reasonable protective standards to avoid credible contingen-4.
cies cascading to areas outside of each party's system.
(e) Interconnection agreements shall not prohibit neighboring coordinating entities from entering into other interconnection agreements, but may include appropriate pro-visions to protect the reliability of Licensee's system, and to insure that Licensee is ecmpensated for additional costs resulting from such other interconnections.
4.
Obligation for reciprocal sales of emergency 4
p owe r.
Licensee shall exchange emergency pcwer with neigh-boring coordinating entities which so request.
Licensee shall be required to engage in such transactions if and when
.it has power and energy available for such transactions from its own generating resources or from interconnected systems but only to the extent that it can do so without impairing service to its customers or other electric systems with whom it has contractual commitments, 'provided, however, emergency
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service shall take precedence over any sales of econcmy energy.
5.
Obligation to coordinate maintenance scheduling and for purchases and sales of maintenance power and energy.
Licensee shall exchange joint maintenance schedules and shall engage in purchases and sales of maintenance pcwer and energy with any neighboring coordinating entity which so i
requests when it can reasonably do so.
After agreement to each such transaction, power shall be supplied to the fullest extent practicable for the time scheduled and in accordance with generally accepted i:.dustry practice for maintenance power and energy sales.
6.
Obligation to engage in sales of economy energy.
Licensee shall exchange data on costs of energy f rem-generating rescurces available to it and, consistent with sys-tem security sell to, purchase from, or exchange economy energy l
when appropriate to do so under principles of economic dispatch with a requesting neighboring coordinating entity on a basis that will apportion the. savings from such transactions equally between Licensee and such entity.
7.
Obligation to sell, purchase or exchange other non-firm surplus capacity and energy associated therewith.
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Licensee shall sell to, purchase from or exchange with any neighboring coordinating entity other non-firm bulk power which the supplying system deems to be surplus, when such transactions would serve to reduce the overall costs of bulk power supply without a loss to either party.
Such bulk pcwer transactions shall be on terms and conditions consistent with generally accepted industry practice.
8.
Reciprocal Performance With regard to transactions in emergency and main-tenance power, economy energy and other non-firm surplus capacity-energy, as set forrh in Sections 4, 5, 6 and' 7 above, other parties to such transactions shall maintain (and ade-quately plan to provide) bulk pcwer supply f acilities and capabi,11 ties sufficient to reasonably assure Licensee that reciprocal performance will be forthcoming.
Reciprocal per-I formance requires plans and bona fide efforts necessary to maintain the established reserve levels under the coordina-tion arrangement.. Temporary short-falls in meeting this requirement due to circumstances beyond a party's control would not provide a basis for the other party's failure to perform in this regard.
Reciprocal performance does not necessarily require that neighboring coordinating entities supply Licensee with the same amounts of pcwer or energy which they receive frem Licensee.
. 4 IV.
ACCESS TO NUCLEAR GENERATION i
9( a)
Licensee shall, upon timely request, afford any neighboring entity an opportunity to participate in Midland Units 1 and 2., Licensee shall, prior to the time major equip-ment items for nuclear generating units are ordered, upon re-i quest by any neighboring entity, afford such entity an opper-tunity to participate in all future nuclear generating units for which Licensee applies for a construction permit on or be-i fore December 31, 1999.
Participation shall be through rea-sonable joint ownership or other joint financing arrangements j
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in which the participating neighboring entities pay their share i
of costs of construction approximately (but no later than) as 4
i they are incurred by Licensee.
The form of such participation in such generation units shall be at the option of the parti-i i
cipating entity to the extent that such an entity is legally f
able to participate in the unit under such a form of partici-t' j
pation.
Such participation shall be on reasonable terms and 4
conditions and on a basis that will ecmpensate Licensee for
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its costs incurred and to be incurred for such generating units; 4
provided, the aggregate participati'on of others in any nuclear unit shall not be required to exceed the icwer of 49% of the capacity of such unit or an amount based upon a ratio of i
(i) most recent aggregate peak load demand of requesting __
I participants to (ii) the sum of such demands and Licensee's 1
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most recent peak load demand (less the most recent peak load demands on Licensee by the requesting participants. )
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. A request from a neighboring entity for participation in
. Midland Units 1-and 2 shall be deemed timely only if a
-letter of intent to participate (subject only to financing contingencies) is executed by the governing body of the participating entity-and received by Licensee within a mutually agreeable time period following the effective date of these license conditions.
As to future nuclear units it plans to construct, other than Midland Units 1 and 2, Licensee shall provide to requesting neighboring entities all available financial and technical data required to assess the feasibility of participation therein.
A request for.such participation shall be deemed timely only if a
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letter of intent to participate (subject only to financing contingencies) is executed by the governing board of the participating entity and received by Licensee within six months following Licensee's provision of such data.
A neigh-boring entity's participation request in a nuclear unit shall also be deemed timely only if it executes, within one year after execution of such letter of intent, a legally binding and enforceable agreement with Licensee to assume financial responsibility for its share of the costs associated with a unit..
i (b)
As a part of any arrangement.that may be reiched NAth respect to any participation under subsection 9 (a) above, Licensee shall interconnect with and deliver to the integrated bulk power system of.a participating neighboring entity any power to which it may be entitled under such arrangement 'at a
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.. delivery point or points on Licensee's system on a basis that will compensate Licensee as provided in Section 10(b) infra.
(c)
Licensee, as long as it maintains majority own-ership, may exercise final authority in all decisions neces-i sary in accordance with good industry practice in the engineer-ing, design, - construction, operation, maintenance and schedul-i
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ing of a nuclear generating unit where a joint ownership or joint financing arrangement is entered under subsection 9(a).
An advisory committee shall be organized properly to consider the needs and desires of each party thereto.
(d)
In the event that one or more neighboring en-tities choose to obtain majority ownership in any nuclear unit, Licensee shall be afforded the opportunity to participate in such unit under comparable terms and conditions as those de-scribed in subsection.9(a).
Nothing in these License Condi-tions shall require any party to enter into a nuclear unit joint venture where to do so would cause loss of tax-exempt status or otherwise significantly increase the tax liabilities-of such party.
V.
TRANSMISSICN SERVICE 10(a)
Licensee shall facilitate bulk pcwer trans-actions b'etween two or mere neighboring entities by providing transmission service between or among the integrated bulk power systems 'of such entities or to such integrated bulk pcwer systems from the generation f acilities of such entities.
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. Licensee shall also provide transmission service for bulk power transactions over its transmission f acilities between the integrated bulk power system of any neighboring entity
. and any, electric system engaged in bulk power transactions which is outside Licensee's service area.
Licensee shall pro-vide. transmission service under this paragraph only if (1)
Licensee's and other connected transmission lines form a con-tinucus electric path between the supplying and the recipient systems; (2) permission to utilize other systems' transmission lines has been obtained by the proponent of the arrangement; (3) the services can reasonably be accommodated from a func-tional technical standpoint without significantly i= pairing Licensee's reliability or its use of transmission facilities; and (4) reasonable advance request is received frcm the neighbor'ing entity seeking such services to the extent that such notice is required for operating or planning purposes.
(b)
Licensee's provision of transmission services under this section 10 shall be on a basis which compensates t
it for its costs of transmission reasonably allocable to the service or on another mutually agreeable basis and in accor-l dance with a reasonable transmission agreement.
Licensee shall l
file tariffs providing_Ior_trans_m_ission services required to f
implement these license conditions with the Federal Energy -
Regulatory Com=ission or its successor agency.
Nothing in I
this license shall be construed to require Licensee to wheel
, power and energy to or from a retail customer.
Each neighbor-ing _ entity to whom Licensee provides transmission services here- ~
under shall be expected to provide transmission services to Licensee under comparable terms and conditions, to the extent it has transmission facilities available to do so.
Licensee shall keep requesting neighboring entities informed of its transmission planning and construction programs and shall in-clude therein sufficient transmission capacity as required by such entities, provided that such entities provide the Licensee sufficient advance notice of their requirements.
However, Li-censee shall not be required to construct any transmission facility (1) which will be of no demonstrable present or future j
electrical benefit to Licensee, (2) which would jecpardi=e Li-censee's ability to finance or construct, on reasonable terms, facilities to meet its cwn anticipated system requirements or to satisfy existing contractual obligations to other electric systems, or (3) which could reasonably be constructed by the requesting entity without duplicating any portion cf Licensee's l
transmission system.
In such cases where Licensee elects not J
to construct transmission facilities, the requesting system shall have the cption of constructing and owning such Sacili-ties and interconnecting them with Licensee's facilities.
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VI.
OBLIGATION TO SELL FIRM BULK PCRER 11(a)
Upon timely request,' Licensee shall intercon-nect with, execute appropriate agreements with, and sell firm bulk power under tariff provisions filed with the Federal Energy Regulatory Commission or its successor agency to any neighboring entity (i) which was a wholesale customer of Licensee on the effective date of these license conditions and (ii) which is not a party to a coordinatien agreement with Licensee, up to the amount required to supply electric i
service to the retail customers or the retail load of l
distributing cocperatives (located in Licensee's service area) which are supplied by such neighboring entity.
(b)
Upon timely request, subject to the terms 1
of subsection 11(c) hereof, Licensee shall sell firm bulk l
pcwer to neighboring coordinating entities to which Licensee i
is not selling bulk power under subsection 11(a) hereof; provided, hcwever, that the purchasing entity agrees to sell such firm hulk power as it has available to Licensee under ccmparable terms and conditions. li:iEEg-- shal1~ ~-
requite Licensee to sell firm bulk pcwer under the preceding sentence in amounts which exceed the purchasing entity's an-
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nual peak Icad demand and reserve requirements minus its total generating capacity (other than firm bulk pcwer purchases
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from Licensee), as defined in paragraph 1(d) hereof, at j
the time of the sale.
As used in this subsection (b), " peak l
load" shall mean the greatest previously experienced lead i.
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4 plus estimated load growth attributable to the retail customers or the retail lead of distribution cooperatives (located in Licensee's service area) to the extent that such load and load growth are supplied by the purchasing entity in question
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' for periods of requested purchases.
i (c) Licensee shall keep requesting neighboring enti-ties informed of its generation planning and construction pro-i j
grams.
Licensee shall include in such planning and programs l
sufficient generation capacity to satisfy requests for firm bulk 1
l power from a system which was a wholesale customer of Licensee -
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on the effective date of these license conditions.
Licensee 1
shall not be required hereunder to construct generation i
facilities or advance generation schedules to satisfy bulk power requests of a system which was not a wholesale i
j customer of Licensee on the effective date of these license conditions.
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f (d)
As used in this paragraph, " wholesale customer j
of Licensee on the effective date of these license conditions" shall include a neighboring entity which is formed in the 4
future whose load includes load served at retail by Licensee 4
immediately prior to its formation (hereinaf ter a "New Neighboring Entity")'; provided, however, that when the total load of a New Neighboring Entity also includes load served-at-retail by an entity other than Licensee immediately prior to its formation, Licensee shall only be required to sell firm t
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. bulk power under this paragraph in an amount equal to the load in kW served at retail by Licensee during the year La-mediately prior to the New Neighboring Entity's formation, plus the growth of retail lead experienced in the geographic area previously served by Licensee.
(e)
Firm bulk power sales under this paragraph shall not be limited to lower voltages when higher voltages are re-quested and available from Licensee in the area where the inter-connection is desired.
VII.
ACCESS TO PCOLING ARRANGEMENTS 12.
Licensee shall not oppose the membership of a i
neighboring coordinating entity in any pooling or coordination 1
i arrangement to which Licensee is presently a party, or within the term of this license beccmes a party; provided, however, 3
that the entity satisfies membership qualifications which are reasonable and do not constitute undue discrimination.
To the extent that Licensee enters into pooling, coordination or similar joint bulk power arrangements during the term of the license, it shall use its best efforts to include provisions therein which persit requesting neighboring coordinating en-tities the opportunity to participate in the krrangement on a basis that is reasonable a~nd which do not constitute undue discrimination.
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!_5 UNITED STATES OF AMERICA NUCLEAR REGULATORY C0m!ISSION 5
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In the Matter of
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CONSUMERS POWER COMPANY
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Docket No. (s) 50-329A 5
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50-330A 5
.(Midland Plant, Units 1 and 2)
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CERTIFICATE OF SERVICE 5
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I hereby certify that I have this day served the foregoing Jecu=ent(s) 5 upon each person designated on the official service list compiled by
!EE the Office of the Secretary of the Cemission in this proceeding in accordance wich the require =ents of Section 2.712 of 10 CFR Part 2-M Rules of Practice, of the Nuclear Regulatory Commission's Rules and 5
Regulations.
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Dated at Washington, D
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SERVICE LIST 5?
Eugh K. Clark, Esq., Chairman Joseph J. Saunders, Esq., Chief P.O. Box 127A Public Counsel and Legislative
- Kennedyville, Maryland 21645 Section Antitrust Division Marshall E. Miller, Esq.
U.S. Depart =ent of Justice E
Atomic Safety and Licensing Board Washington, D.C.
20530 i
U.S.. Nuclear Regulatory Co==ission Washington, D.C.
20555 David A. Leckie, Esq.
Public Counsel Section Dr. J. Venn Lecds Antitrust Division
' Rice Univtr*'
U.S. Department.cf Justice P.O. Box 1F Washington, D.C.
20555 Houston, T m v 77001 George Spiegel, Esq.
Joseph Rutberg, Esq.
James Carl Pollock, Esq.
Antitrust Counsel 2600 Virginia Avenue, N.W.
Office of the Executive Legal Director Washington, D.C.
20037 U.S. Nuclear Regulatory Cc= mission Washington, D.C.
20555 William T. Clabault. Esq.
Antitrust Division
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Mr. Jero=e D.-Salt==an, Chief P.O. Box 7513
-Antitrust.and Inde=nity Group Washington, D.C.
20044 Office of the Nuclear Reactor Regulation U.S. Nuclear Regulatory Co= mission Melvin G. Berger, Esq.
Washington, D.C.
20555 Janet R. Urban, Esq.
Antitrust Division William Warfield Ross, Esq.
Department of Justice Keith S. Watson, Esq.
P.O. Box 14141 Wald, Harkrader, Nicholson & Ross Washington, P.C.
20044 1320 - 19th Street, N.W.
Washington, D.C.
20036 Michael C. Farrar, Esq.
3i1..
Atomic Safety and Licensing Appeal ET' Alan S. Rosenthal, Esq., Chairman Board WE Atomic Safety and Licensing Appeal U.S. Nuclear Regulatory Commission
-Board Washington, D.C.
20555 77: %
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U.S.-Nucleauh?eCulatory Cornission Wasington, D.C.
20555 Richard S. Sale =an, Esq.
Atomic Safety and Licensing Appeal Scard U.S. Nuclear Regulatory Cem:ission Washington, D.C.
20555
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