ML19331A260
| ML19331A260 | |
| Person / Time | |
|---|---|
| Site: | Midland |
| Issue date: | 03/05/1974 |
| From: | Jablon R SPIEGEL & MCDIARMID |
| To: | Garfinkel J US ATOMIC ENERGY COMMISSION (AEC) |
| Shared Package | |
| ML19331A258 | List: |
| References | |
| NUDOCS 8006190750 | |
| Download: ML19331A260 (6) | |
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'EC'IE%T C. McCIARMID CANDIA J STREDEL March 5, 1974 'r'<*"ost trei33s**o aOux, 4. smos J*.MES N. HORWOOD PETE*2 K. M ATT sVr8CsNsA SAR ONLYI JAMES C ARL POLLOCK Honorable Jerome Garfinkel Chairman Atomic Energy Commission
-Washington,_D.C. 20454 Re: Consumers Power Company (Midland Units
( l' and 2) : AEC 50-329A, 50-330A
Dear Chairman Garfinkel:
The purpose of this letter is to clarify the position of inter'veners in light of the colloquies at Tr. 6392 and sub-cequent off-the-record bench conference in which the Board Chair-man stated his belief that interveners had waived any issue that the building of the Midland Units could create a situation in- - consistpah with the antitrust laws. We think it important that the Board and partica be apprised of our position. The issons te be considered are set forth on pp. 2-3 of the Board'c Prchearinct Con'forence Order, August 7, 1972, wnich
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- 5. The Department of Justice (Jus tice) does not intend to introduce any evidence in the instant '
proceeding that the granting of the permits in this case may create a situation inconsistent with the antitrunt laws as specified in thation lO5a of , the Atomic Encrgy Act, as amended. Justice does intend'to introduce evidence that the. applicant's activities under the licenses will maintain a situation inconsistent with the antitrust laws. "
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o HCnorable Jerom3 Garfinkel March 5,'1974 . Pago 2 "C . RELEVANT MATTERS IN CONTROVERSY
- 6. The basic thrust of Justice's case is that (a). applicant has the power to grant or deny access to coordination; (b) applicant.has used this power in an anticompetitive fashion against the smaller utility systems; (c) applicant's said use of its power has brought into existence a sit-untion inconsistent with the antitrust laws, which situation would be maintained by activities under the licenses-that applicant seeks. Neither the -
intervening parties nor the Atomic Energy Com- [, mission 's regulatory staff enlarge this scope. j Hence, the scope of the relevant matters in con-troversy is as herein outlinad. " At least in part the antecedent of this order wuc sta tements made by the Prehearing Conference of July 12, 1972, in which in a general way counsel anticulated their theorics of
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tiie cese.- At that prehearing conference, nr. P and exprerred the theory that Consumers Power's ability to grant or deny access to coordination had created a situation in violation of the anti-trust laws. (E.,g., Tr. 59). He stated:
"[T]he' situation was creuted in the past. The
.f installation of the Midland unit would maintain
\, the situation, because by its very installation rr M er.nt & sanc L: a'mc ihn c..:n pawa: Lo e a .h p -
unita and lauintain #Lu cost advantage cd preven - the proposed interveners from doing do -- excuse me --- the intervencrs from doing do. " (S . I .C . , Tr. 66) Mr. Fairman, then counsel for interveners stated:
"I think tha h the history in important becaure whether it is proper or improper it shows a pattern of practice which .did not spring up over night and was notidevised with the advent of the Midland plant,
-, but is a continuation of the kind of policy deter-
, minations that I, based on my recent experience, see-no evidence of any modification. And I think for i
a IIonsrable Jerome Garfinkel March 5, 1974 Page 3 that reason the past does_show exactly what the situation is without 3udging the illegality of the steps that got there. The fact is that it is a continuing process and one which grows in importance as these units got larger and as the transmission facilities become able to handle more and more of tl e integration and 1 cad gather-ing that goes on in rational large scale planning of utility systems. " f^. Interveners do not question the statement of issues in the Board'c prehearing conference order, although we note their extre generality. We further agree -- and have consistently taken the position -- that Applicant 's existing domination of bulk power generation and transmission constitutes an existinq bo W1cncek monopoly obligating it to doul fairly with interveners and that its refusals to do no are . inconsistent with the antitrust lawc. In this cr. W eb c^ ccar m , the additi n of the Midinnd Ur: Lts ca:. :ot creat,c1 a situation inconsistent wit.h the antitrust Jaws, since one already exists, although because of their . import-ance and size the constructing and operating of the Midland Units m:.y add to the present anticompetitive situation. The Board and all parties have been on notice that this was our position from the day the trial opened and before. (E.g., Tr. 842-843): 'l* vyp. ., . 3., . . . c ~ ; ' J ic u' On '
'A Intene:.ars in the beginnii.g of the caso dia--
cussed this matter, and noted that because of Applicant 's domination of the bulk power supply network, that a monopoly would not be created. However, if the planned Midland Units . wore licensed without appropriate conditions, that that monopolistic power would be maintained, and I believo, if I recall correctly, either Mr. , Brand or Mr. Fairman, or both
.used- the word " enhanced". That the ability to build, construct, operate the Midland Units would aid in integrated operation of Consumers Power Company, and
', enhance its ability to control the services, what we call the bulk power supply services.
O Ilonorabic Jerome darfinkel - Page 4
.Narch 5, 1974 "Obviously whether or not there were such a situa-tion initially of monopolistic power,- certainly whatever power Connumors Power company had would be enhanced by its ability to build and to operate those large base load units. Therefore, the Joint Interveners take the position that the licensing of these units without appropriate conditioning would not merely maintain, but enhance the monopoly power of Consumers Power Company, r
k- "Now obviously in the sense if the Board were to find tho t such .aonopolization did not exist, although
- I think it would be conceded in terms of the domin-ation of those particular fecilitics to which I would
- make referenco, then certainly a monopolintic situa--
tion wruld be created. " While our basic position is that there already exists a- . situaticn inconsistent with the antitrunt laws, we have never meant to imply that, should the Board find that a p.re-existent situa-tion did not exist, that it could not find a situation inconsintent with the antitrust laws would not be created by granting an uncon-g ditionc0 Midland license. Nor do we think it meanincjrful to so Otherwise , the p me I he sta tutm f la g age "crea te or mr. i ntuin" . qn Unard could find against a litij tt c. W cr thc o kd1 violation.of antitrust law or policy (perhaps for some technical reason) and then find that because it had argued that there had been a pre-existent anticompetitive situation, the litigant was precluded from arguing that the building or operat-ing of nuclear To do so plants themselves would create anticompetitive impacts. would create a no xan's land clearly contrnry to stat 1 tory intent.
-Interveners further point out that they have continually and unsuccessfully pressed this Board for a clarification or lim-itation.of the (issues which would shorten this litigation. The Board has resolutely hold to the position that it would defer rul-ing_on issues of relevancy and scope. The Board cannot now find a waivor of the basic statutory standards, considering the gencr-Morcover, what is ality of' the incues as determined by the Board.
at issueLis a basic statutory finding the Board must mako.
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O e Honorabic Jeromo Garfinkel March 5, .1974 - , Page 5 We note that there are no now different factual con- , siderations, as they affect trial, whether the Board explicitly considers if the building or operating of the Midland units would ; create an anticompetitive situation. This is because the units ! will add to Applicant's. bottleneck monopoly, which is what inter-veners have been complaining about all along. Therefore, the l quencion is_one of legal import, not of additional proof. i i The purpose of this letter is to make certain that the Board and parties ~ are on notJ.co of our position in view of the
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Board Chairman's comments, cited initially. We do not believe
.[ there was a waiver of our rights. However, if the Board believes contra.ry, we requer t the issues be clarified. If the Board finds Applicant's activities have not resulted in a " situation incon-sistent with the antitruct itws" so that the building and oper-ating of the Mid]and Units (or ancillary facilitics or agreements) will ry.intain such situations, the Board should then consider whc hMr th.: building and operating such units (or ancillary facil-ills m est..ge. cuts) vill cre:2tc it. We note that fe?. lure tm do so will plainly be error. Indcod, the overriding public interest requirement that the Commission consider important matters would make it imparative that the Board consider such matters even if interveners had, not ralsed them. Udall v. FPC, 387 U.S. 42G (1957); !
City of Pittsburch v._FFC, 237 F2d 741 (D.C. Cir. , 1956) ; Michician Connnlidated Gna Co. v._FPC, 28? F2d 204 (D.C. Cir., 1950), cert. ( ,de,:3? ' 364 D'S. 913 (10001; Scot : o Hudson Proserrn 0.i en Conforence. n, j 324 L m 300 (t.nd '% , e vi. 'k r ' c 4 P' n,S Cn (1966) ; Northern Paturz,1 Gas Co. v. FPC. 3 99 F.4 d W 3, 95G (D .. Cir., 1968). . I request that this letter he placed in the formal case
- files relating to this case. -
Vol.y truly yours, d 5 1. . Robert A. Jablon s RAJ/ln cc: Board Members All Partics
APPENDIX D
" Motion for Reconsideration of the Trial Board's November 28, 1972, Order and Motion to Ccmpel," filed on behalf of interveners on the 29th of June, 1973, in NRC Docket i
Nos. 50-329A and 50-330A t 4, J f I
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UNITED STATES OF' AMERICA ~ s DEFORE, TIIE - '
. ATOMIC ENERGY COMMISSION .
In the Matter of ) ..
)
Consumers Power Company ) Docket Noc. 50-329A ( ) 50-330A
(Midland Unitt 1 and 2) *
)
)
MOT.L^.M ECP. P.".COMSIPEFJiTION OF THE TRIAL BOARD ' S NOVEIRER 28, 1972, ORDER AUD MOTION TO COMPEL
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1 , - b , INDEX Page I N T R 0 D t 'CT I ON . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ] AIU;11.Ml:NT ...........,.............................. 2
- 1. Di scovery showing tha t Consumers Power may have used its gas monopoly to aid it in competition for electric ctistom-ers demands that Intervenors be granted discovery concerning the company'c gas operations....... ....................... 2 II. Revelations that in ccnjunction with ot.her utilitiec Consumers Powcr Company ,
han made payments to an Assistant of the Governor of the State of l'ichigan for a ntudy deinnd that thin Board allow dic-covery to 6etermine whether concuract Power's political activition adversely affect Intervonors access to coordination. 8 11 t . The recuented additional discovery will ', not delay the proceedings................ 15 IV. Connumers Power chould not be permiI:ted t o wi t-hhol d f rom the 130a rd and the pa r t ien whal may be thounands of relevant documents. 16 5
o . ; CONCLUS10N........................................ 20 APPENDIX (INDEX).................................. 23
' TABLP. OF AUTIIORITIES CITED CASES:
California Motor Transport Co. v. Trucking Unlimited, 404 U.S. 508 (1972).......................... 11, 12 Eastern R.R. Presidento Conference v. Noorr Motor 365 U.S. 127 (19G1).......................... 8, 11 George R. Whi t ten, Jr., Inc. v. Paddock Pool Builders, Inc., 424 F.2d 25 (CA 1, 1970), coet, denied, 400 U.S. 850 (1970)............ 11 IIecht v. Pro-Football, Inc., 444 F.2d 931 (CADC , . 1971), cert. denied, 404'U.S. 1047 (1972).... 11 Internat.ional Telephone & ' Telegraph Corp. v. Genera 1 Tolcphone & Telegraph Corp., 351 F. Supp. 1153 (D. IIawaii , 1972).............. 14 10 rain Journal Co. v. United States, 342 U.S. 143 (1951)....................................... S ULR3 v. Virginia Electric Co., 314 U.S. G49 (1941) 10 Otter Tail Power Co. v. United Staten, U.S. , 35 L. Ed. 2d 359, 93 S. Ct. 1022 ( 19 7 3 ) . . . . . . 12 Pike v. Bruce Church, Inc., 397 U.S. 137 (1970)... 14 Sacramento Coca-Cola Bottling Co. v. Chauffeurn Local 150, 440 F.2d 1096 (CA 9, 1971), cert. denke,d, 404 U.S. 82G (1971).................. 11, 12
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.Schwegmann llrothers v. Calvert Distillors Corp.,
341 U.S. 384 (1951).......................... 14 United 14ine Workers of America v. Pennington, 381 U.S. 657 ( 19 6 5 ) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9, 10 United States v. Griffith, 334 U.S. 100 (1948).... 5 Woods' Exploration'& Producing Co. v. Aluminum Co. of America, 438 P.2d 1286 (CA 5, 1971), cert. denieJ, 404 U.S. 1047 (1972)........... 11
. STATUTES:
\ Atomic Energy Act, 5105(c)........................ 5 1
Atomic Energy Colmnission Rules, S2. 740 (b) (1) . . . . . . 9, 10 5 Clayton Antitrust Act,15 U.S.C. S14.............. 10 i- 14ich. Stat. - Ann. , Sb.2079......................... J 4 MISCULLANEOUS: Consumers Power Company Annual Report (1972)...... 7 } Deposi tion of A. II. Ayn.ond , Prcrident & Cha.i rman 1 .of tna Doa1d, Consumc. rs Powc:: Company..-.....
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- Deposi ti on o f Judd B acon . . . . . . . . . . . . . . . . . . . . . . . . . . 18, 19, 20
' Discovery Document'No. 007324, 007334, Report 3
on Bay City Competitive Situation"........... Discovery Document No. 23001-23007, " Remarks of James 11. Campbcll, President, Consumers Power Company... July 19, 1960"..................... 6 DincoOory,-Document No. 23861, " Chippewa tillis 3 L S ch'o o l '. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
= De troi'l l' roc Prcac, April 23, 1973................
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e , t LoLtor, Jablon to Rons, datod Junc 7, 1973,,,,,,,, 16 Letter, Watson to Jablon, dated Junc 15, 1973..... 16 l e _ . - . . , m 5--ee
UNITED. STATES OF A!1 ERICA BEPOltE TilU ATOMIC ENERGY COMMISSION
) .
In the Matter of )
)
Consumcrs'Powcr Company ) Docket Nos. 50-329A
-) 50-330A (Midland Units 1 and 2) )
)
MOTION FOR RECONSIDERATION OF TIIE TRIAL BOARD'S NOVEMBED 28.'1972, ORDER 4 AND MOTION TO COMPEL (' . On UcVember 28, 1972, the. Trial Board upheld Consumers Power's objections to documentary discovery by partics to this prococding against Consumers Power. Further rulinc on Accli-cant'c obiectionn to document recuccts, the Danartment of 1 Juntice's Motion to Comnel the Production of Feur Catoceries of Documenta, and Aunlicant's Motion for Protective Orders. ( In light of addi tional evidence, Intervenors respectfully request that the Trial Board reconsidor its Nove:aber 28, 1972, I ruling _ insofar as it limits discovery regarding Applicant's 1 natural gas operations, political activities and file system.
.Intervonors furthor'roquest a ruling from the Trial Board allowing them to ci:aminc _ccrtain discovery documents which are apparently being retained by Consumers Power Company's Washington counsel, Wald, liarkrader 6 Ross, and have not been made available D
y-:- Q o . to t the parties and that we he allowed to inspect gonsumers Powcr's instructions used in complying with the doint Documc t
*/
-Rcouest.- In support thereof, Intervonors stato:
I . DISCOVERY SilOWING TIIAT CONSUMERS POWER TGY IIAVE USED ITS GAS MONOPOLY TO AID IT IN COM-PETITION FOR ELECTRIC CUSTOMP.RS DEMANDS TIIAT INTERVENORS DE GPJiNTED DISCOVERY CONCERNING Tiln COMPAUY 'S GAS OPEPJiTIONS In its November 28, 1972 ruling, the Board stated ( (pp. 304) :
"Possibly, Applicant may have used its gas operations to' unfai rly corepche with the smaller utility systems. 110we ve r, even if it has donc so, it is not a relevant natter in controversy. This behavior not directly related to coordinntion activitics is not relevant. Therefore, the objection is sus-tain'd."
In so ruling, . the Board apparently felt that Consumers Power may
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have misused its leverage over gus er lor., but that in any event this would have only tangential relevance concerning the cues-tions of Appl'icant 's activitics to monopolize bulk power supply markets. Limited discovery documents on this subject show that
-officials of Consumers Power at least considered using gas sales
'*/ _
We also rennest an c:<planation .of the identification numbers on the documents. 2.-
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a.n a dovice to .limi t' cldetric salen of Intervonorn, and furth6r that b Concumora Power may have conditioned the calc of its clectric nervice on the uno of its gaa service. Specifically, in a " Report on Bay
. City Competitive Situation", presented by five Concumers Power of-1/
ficials7 the Company. stated (Doc. No. 007334) :
- 4. If Consumers Power is. to continue to operate its electric system in competition with the Bay City Light Department,.the follouing may improve its competitive situation . . . . (c ) in-creacc gas sales promotional efforts to gain gas sales to help offset decline in electric sales and to reduce City's electric sales growth. "
In another document, Consumers Power told the Chippewa IIillo School ( District Board on Apri? 19, 1968, that it would be necessary for , Consumers Power: L
". . . .to have the natural gas ar d electric service to the high school in order tpfe:-: tend our natural gas liner to the school."
(Dec. 14o. 2 3GG 1) i 4 Intervonors' counsel attempted to c::plora Consumers Power's use of natural gas:cales in order to aid'it in competition for its electric bucincss at the deposition hearing of Mr. A. H. Aymond,. Chairman of the Board of Directors and Prorident of Connum:?rs Pv ver, but was met uith the objection 'tbat such questions were beyond the ccope of examination permitted by the Board's November 28, 1972, ruling. Mr. Aymond was ordered by his counsel not to respond. !!owever , 1:r . Aymond did state that in setting lf U. J..Icfferson; V. M. Brown; R. L. Paul; L. A. Vaupre; , and II. R. Vaughn ( April ,lF 6 5) . Mr. Jef ferson is ' now D:ecutive Director'of Rates,.Research and Data Control; Mr. Paul in General Supervisor'of-Comuercial F.loctrical and Covernmental Services, PPC.1972,"Forn 1" Report. 2j The relevant documents .are attached as Appendi::.
. 5 <.. .
.fraten1 Consumers. Power considorcil- competitivo factors.y These would include the impact of other fuels.
Consumers PoNor competes.with'Intervonors for clectric sales. Consumcrs Power enjoys a retail cjas and electric monopoly in most-.of the territory in which it serves. In some of the l' . places where there is retail electric competition, Consumers Power'in a' monopolist for the gas business. If it.could be estab-lished that Consumers Power used its power as a monopolist cvor
. gas sales to' influence the market for clectric sales ,cither where (L
Nt' could not successfully compete for clectric business with
< a local municipally or cooperativo3y-owned utility or to increase its electric market, this would directly affect Intervonors' ,
1 ability to competc for electric salec. Consur.crs Pouer itself has stated that under the Doard's rulings: .
"Since the'compotitive viability.of the municipal g' and cooperativo systems in Applicant's case is
, ' contral to its position oa the 'accens' i ssue,
- j. Applicont must securc the Cata about 1.he systeu; necessary to establish such viability. "(" hpplicant's
. Answer to Motion to Quash Subpoenan of Mi chi gan Municipals", January 19, 1973).
Over the strong protest of the 21~ Michigan Municipal nonpartics,. Applicant's position on. relevancy was broadly upheld by the Atomic Safety and Lic'insing_Appcals Board. Decision (ALAB - I 1/- A' tiranscript is not yet available of this deposition. Mr.
-Aymond's deposition tcstirceny is stated according-to counscl's p :b'c lief.. ,
- s-- ~. nn. . - , , , , - - , ,n- ., ,- . , ~,- . . .,, g
122, May 16, 1973). Certainly, under thin 13oard's rulinge., actionn which directly affect competition for electric calen and therefore the ". competitive viability" of Intervenors are relcrant at least for discovery purponcc.
- T)1c skatutory standard of the Atomic Encrgy Act references thinBoardtogenc[alantitrust law. Section 105(c). It is deeply ingrained in the antitruct lawn that the use of monopoly power over one market to gain or enhance. domination over another (e.g., " tie-in" salen) is illegal. "If monopoly power can be used to ' beget monopoly , tihe [Sherman] Act becomes a feeble ins t rur.cnt indcod . " E.g., United States v. Criffith, 3 3 4 U. S .100. 3 0P Co.v. United Statcs, 342 U.S. 143 (1951).
gg,3) ;Lorni n Journal Sherr.an Antitruct J!ct 15 USC f9L2; Clayton Antitruct Act, 15 USC 51/: . littenptc to clir.inate or reduce electric competition by Po,ter the municipalc and cooperativec on the part of Consumers
.through conditioning salca of natural gas to.the taking of electric t.
servi :a or thr oug'.1 set ung noturcl gac c.' elect-ic ratec syn ~ pathy with each other,and to limit the offect of municipal and cooperative competition y:ould not only violate antitrust policios and affect Intervenors' "vicbili ty" , but wor 3 d af fect Intervenarc' accoon to. coordinated electric development. Pre-hearinq Conference Order of ihe Atcnic T.aretv and Licennina Poard, p. 3 (August 7, 1972). The weake$1ing of claall electric utilition compet.ing with Connuraerc
. r,
e . Power Jennonn their ability t.o coordinate generation and trann-minnion among t.hemuelven and therefore to compete with Consu: tern Power Company. The Daard can further notice that there is a growing fuel and energy shortage. The problem is so great that it has led to Federal Power Commission orders rationing natural gas supplion, limitations of gasoline available to supply retail outlets, large increases in fucl prices and even Preside'ntial mesnages and legin-( lative proposals directly-dealing with the problem. Any use of 1cvorage by a dominant carapany over energy supplies (or sy:n,,atheti c pricing of fuel) would have an increased impact in a period of fuel shortage. Indeed, a chief reason for Consun.ers Pc'.:cr's 1_/ requect to build nuclear units is to obte,in alternate fuel nupplie . According to its pleadings, Consumars I'ower plans to pre-sent cost and rate evidence ccnecrning Intervencrc' " competitive I situation". "Appli. cant 's Antwer to Appeal 1 y Non-Pa rtion " (pp.lG, t 20-24, April 2, 1973) ; Applicant 's Annwcr to Motion to Quanh Sub-poenan of Michigan Municipain"(pages 3-12, January 19, 1973). 3_/ An tar bach a. 19CO, Jamen !!. Crepbell, then President of Consu;;. :r n Pouer Co::'pa'ny , stated that the co: pany war. investing in Ili g Poch Pcint 1;uclear generation in view of increading Ocmandu for electricity and finiLo fonnil fuel recource: . (Dincovc;ry Doc.
-23001-23007) Append i :: . During d< poni tions, Mr. Ayror;d n ea ted tha t.
he i:. tiener::]ly in agreenent with this dom.:mnt and that a rea::on for inve;t ing in nuclear plant n in in ordcr to obtain fuel diver :it y, a
. o An we have stated, denpite the vigoroun objectionn of the n t .: r.
parties that evidence directed to the profitability of retail calen was irrelevant, both the Appeals Bon ~d and this .Doard held that din-covery directed to thoce issues was proper. For the Board to allo.t discovery by Consumero Power of smaller cystems' profitability in competing for electric calec (and presumably to allow it to prenent its " competitive viability" defence), but to dicallo./ Intervenors any discovery concerning gas promotion, when there ic direct evidence 5 ' showincj that Consumorn Power has ucca gas prorcotion to affect con-peti tion for electric salec, would be a denial of due procesa. We do not ask the Board to reopen this incuc in n factual vacuum, but to do so in light of direct evidence that Cor.cumcrc Poc:cr has usr_d inter-fuel comectition -- or at least has considered doing so -- to 1/ the detriment of Intorvenorn.- It would be curprising if Consumers
" Power did not attempt to protect its c>lectric market in its pricina t
and celling oi; natura ? gas. At the very leant thic record :.Lould not be devoid of factn concerning such~iscucs.
}_/ Almont 4 5','. of Consume rs Povici 's revenues recult from the sale o f na t u ra l g:e n , which for many uses can cubstitute for and compete with electricity and which ic a fuel tha t can be used to genera te electricity. Consumers Power Co:rpany 197? Annun t Rnnort (incide cover).
r i e .- - Il RMVIII.ATT ONS TJil\T T N CO:CIUNCTl ON Wl TI! OTlll'.R UTILTTI PS CONSUMP.RS POWM11 COMPANY llAS IGD 1: PAYMP.NTS TO AM AUSTSTANT OF TIln COVERNOR OF
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Ti!C STATM OP MIC)lTGAN FOR A STUDY DEMAt:D THAT TilIS BOARD ALLOW DIf;COYURY TO DMTl:RMIt!M WilCT11P,R CONSUMCitS POWER 'S POLTTICAL ACT) VITIES ADVERSELY APPECT INTERVCNORS ACCESS' TO COORDI-- NATTON In its November 2 8, 1972 ruling, the Trial Beard sta ted :
"Whether or not Appliennt hac engaged in unfair praetices through politica1 maneu-vers in a matter not relevant to the issuen
( in controvercy; more parti cularly, issuen portaining to coordinc tion. " (pp. 2-3). At the time of the Board's ruling, the issuca pertaining to poli-tical activities were hypothetical. Since the Boa rd 's ruling, it has been diccloced that one of the chief assictants of the Gover-nor of Michigan was retaine:1 by Consu:nors Po'.zer, Detroit-Edison l and Michigan Dell Telephone "for a six-month resea rch project . " notrolt Free Prm..:, Aoril 23, 1973, at 1, col'. 1. (See Appundi::) . ( I Thone dinclono.en indicate that Consumerc PU, a r ' bay have practiced 1 j a mero sham *to engage in forbidden activities." id: See nantern R.R. Proni de ntn Conferenco v. Monrr Motor Freiuht,_ 365 US 127, 144 (1963). The Prenident and Chai rm7n or the 13on rd of Connumr r:. Pover, Mr. Aymond.. admitp to knoving Mr. Donn3d Cordon, Governor Mi11iken, former aide,nnd har con f i. rmed that M *: . Gordon d i.d in fact, do work for co:inu,nbrr Powe) . D< pon i ti on of' A. II. Ayinond . Pronn rep irh.
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i nili cate tha t Mr. Gordon van bei nr.1 p,id n $!iOO per month ret ai ner ,i . out of~novernor Milliken'n pernonal poli tical fund" at the nieme time that he van being 'io ,id $19,795 by three of Michigan's Inr-gent utility. companies". Detvoit Proe Prenn, sunrn.
** As the Board appeared to phrasc the isduc, the e, rues t ion i.
j for dincovery is whether Applicant 's -politica1 activitics were t
"a more cham". Order Rulinq on Applicant 'n Ob-iccti ons to Document At leant at this stage of discovery, 4 Recuenig ... , cupra, p. 2' .
we vould.think that the ouestion is,instead, whether these acti-
-{
, viti es , regardicas of their legality, can throw light on the Appli-r j to co-cant'n purposes concerning its *.-;illingness to grant access ordina ti on . See stater.cnt of " Relevant Matters in Controversy" set.forth at Pre-hen rinc Con forence Ordor of the Atomic Sa fet v' and Licenni.na Board-., p. 3 (Augunt' 7, 1972); Atomic rnerror Cc~ min-
, sion nulles. Section 2.740 ( 3) (1) . I t may be that Consumers Pover i
[ has engaged :in political activition vhich are completely lega.1 in
.and of themcelven, ' but - which indica te a purpoco to limit the muni-ciphl and coopera tive po. or systemn from gaining effective accccu to bulk pover s0 2 plies or otherwine limiting their ability to com-1
'Th e fnet th?t such activition on the n:rt of connumrn Po mr
' l peto.
m:v havn h'onn l on;.,1 doen not menn tha t- thov arn ori vi 1 one d ann i ne t
' 1 I
dincover'. nr i nnd:ni n :ibi r- .ir n oridence. 11ni t.ed Mi nn. Wor):n rn of _ JAino r i en v. - Pi nn i n :enn ,- ~}(11 tif; 657, 670 n. 3(1965); A t_ _om .,.. i c 1:n o r< rf.
- ~ ~ =
9 1
, - 4 v 4 --wrevM-- yvai --r ----t- -*= reg y , - - , rv--,, - ee-
~
Commi nn i on P.u l on , nli.nr:1 Moreover, we know o f no pri vi 1 eye a p.- plying to consumern Power Company, n. totally regulated corpora-tion, vhich allovn it to keep secret its political activitiec as of,right, To the entent that Consumera Power's political activi ties may show an attempt to limi t accoon of municipa l or coopera tively-- owned utilitics f rom hulk po 'er supplies or to restrict its re-ta il ma rkets , it may shed light on Consumers Power's other acti-i ( vatien.7/ In deponition proceedingc, the President and Chairman of the Board of Connu:c.orn Power Company, Mr. Aymond, specifically admitted that he supports legislation which limits'the sales 3j a reas of muni ci ra lly a nd coope ra tively-owned utilitics . He further admitted tha t Concumors Pover maintainn a full-time l ebby n..; offi'cc in Lansing, the Mi chi gan S ta'te ca pi ta l, Thus, rather th in I surmine, there is npocific evidence that Consumers Power Compiny's
]/ Under the rulen the relevant test is rhether discovery is "reacon.ibly calcula ted to lead to admi scible evidence. " Pennina'on nu t1rg, staten'that evidence of conduct, itself legal, may never-the.lenn be introdaced if it tendo reaconably to nho. the purpoco and cha racter of the pa rticular trannactions under scrutiny ...".
2_/ In thin regord, the Mati onn1 Labor Rela ei ons ma rd canec a re relevant. Companier a rgued tha t their conntitutionally protected right of froo :per,ch covered a bro.id area of mnnagement conduct which could not be scrutinired. The Courtn hold, ho ever, t hr. t where conduct- i n ovi eler.ced by npv ch or in part of a courne of conduct, nbecch nny be unod a:. evidence of ant:i-uni on activ: t . The l ead c.e:c i n 1:1.ni v . V i r,i i . i n 1:1, ct. r i c 'co . , 314 t):: 4(.9 (lMl). 5.:!O79 1imitn na1en by 3/ Michigan ::t at ut.e- /uu:ot a t ed , m c. mun i ci pa l : I 10:. out nido t.he.i r pol i t i ca l j u r i nd i c t. i on:. . Thi . : tat ut e
- 10 .-
Icginiative activi tion may have had the speci fic ihtent to re-strict Intervenorn ' potential market n . The Noerr-Penninrrton cancu do not restrict adminnica of . Othe'rtrise admincib)c, evidence or discovery concerning political mattern, although they do recogni. o an area of propc rly protected activitics -in which corporntions can engage in political activi-tics without offending the antitrust la ws . However, the area of ( protection dependo on varioua factors, in-cluding the underlying legality of the political activi tics invol-ved. Sa cr:fr'en t o Cract -col a nottli n<r Co. , v. ch.3 uf rou rn T.o ca l 190, 44 0 r2d 10EG , 1098-1099 (CA9, 1971) e n 'r t . der igd, 4 04 US G26, s'1971) ; Georgn_n. Whitten. .T r . Tne., v. Paddock Pool Buildern, Inc., 424 F2d 25, 31-34 (CA 1, 1970), cort c}nied 400 US G50 (1970); EcoM F pl ora t i on 3 Producina co. ,
- v. Al uni tyum co . of 7,merica, 438 P2d 3286 (CA 5, 1971) cert. don i r;d,4 04 US 1047 (1972); necht v. Pro-rce t!n ! 1
( T ne, 444 P2d 931 ('CADC,1971) , cort .deni ed ,404 US 1047 (197.?). The purpoce of discovery in to find out yhnther Connumers Po'..'o r 's a c t i-Vitic. have panned perniacible limitn. Horcove r, the Non r r-Pon n i n< ' < .. doctrino i tself recogni ve:. the possibility tha t the exercice of poli-tical right by a corpora tion may connti tute a "more cham" to violtto Mo rr, the antitrunt i t e. . . 7:a n t o rn P.H.PronidanPn rnniernnco v. .
- v. T ruch i nt s
!;up ;;1, 'm 5 U ", at 344: C:rl i Gsi n i: L1nt or Tr innn.irt ro.,
,. i ..
- e tln1 i mi t ed,,4 01 US 508 .(1972). At the very leanL, the paymentn
- by the three major ifichigan utilitics to Mr. Donald Gordon raine the possibili ty of activitics which would 'not be, protect,cd under Noorr-Ponn,j njjton and,: indeed, which may have been illegal. The Atomic Energy Commicsion would be dorclict to refuse to investigate con-duct ~ that may shed light on thoce activitics. See Sacramento coca-Cola not b li n:7 Co., nunra.
Recent Supreme Court cases confirm that the corporate ( right to engage in political or governmental processoc in not absolute. Thus, in the conte::t of alleged sham litigation, the Supreme Court has allowed allegntion and proof that lawsuits were instituted for unlawful purposos, even tho}igh they arguably h'ad
. the purporc 'of presenting defendant 's case to the government.
Californin ;totor Trnnrport Co. v. T ritch i nct Unlimited, 404 US SOS (1972); Ot t or Ta i l ' Power Co. , v. Uni t ed S ta tr n, US .,
'3 5 - . Ed. 2d 359, 93 S. Ct. 1022' (19'/3).
e In conclusion,'it is catablinhed tha t Consumerc Po.te r maintnined a legisla tive. lin'inon office in Lancing. I t has en-gaged in activitien to influence les .Leion. It han made paymont:.
.to a government o[ficial' in conjunction vith 'other utili tion vho wan hi gh)v . i nfluen tisil in formu)n ting Sta te policy. The innuen, a:
det.druined by the Hoard,are whether Connumort. Power lian uned itn On -
' to
5 to coordination to nmaller utility cyntem:: pover to artny necenn lavn. renulting in a situation inconnintent with the anti trust . this end Demountration of political activity denii ned J to achieve would shov o definite purpose on the part of Connumers Power to restrict municipal access to the advantages of coordinated po'cr and would furthermore ched light en the Company 's other acti vi ti on . The daily newspaper headlines confirm that- it is enecntial for t.*ov e rn men t not to cover up investigation of potentially nuestion-able political activitico. As a public agency, the 7,tomic Energy Co:c:ai nnion has nn obliga tion to ferret out potential micconduct bearing upon its jurisdiction. The fact tho t Consumers Po.zer Co::. pin / 's activitics voro caliticctl do not irrmunire it h u.r. dic-clonure. Indood, ir its la rge?" rr ccennful attempts to obtain Pozer strouced the po31-discr ' fry f ro: the non-pa rtion . Consum rs Thene princip)es are ( cien in favor of acco ,n to informat2on.
+/
relevient here.-
._ / Thr- actuaiit, or potentiality of States pacning ntatutes or a pp 3 / i .r.g loca1 policien do not bn r di ccovery Even of docturnts con-acnuming that corning concumer- Po .ze r 's lo'bying cfforts.
the St.;+le can lh- nLatuten limiting the opural-ion of the anti-truct ] m. . , and hindirg on the Ato: ti c Energy Co::mi na ion , such ]i:ai - tation *.zould not tjece s ca ri l y i nsula to all of Can':ume rcf Power'n nc-Livitir- Certi i nly it nhould not chie'd the partie: rom hnn , - The onl" wy the partion hovr- to rnine inaak 1 r '! n - zd ,on t t h c 1c: . conce rn i m'; Connu: "r- Powcr'. nctivitien and reco::n .e nd i ng remedi( . in j[ t);ej can o i,P;, j ; Ell .t i 1. I p ' h LO::ti e l'ut ? rgy CU!n;di : ;i On nlnou 3 d L;il;e t l l l l l l
Knowledge of them. Thun, for example, coru:umern Power com-pany han i ncui red about s.iun i c i pa l ta:: paymentn, even thon.ih Connt i tutionn1 and nt a tut ory . law a f firms the right of muni-cipa li t i en not- to pay Federal income tax. The Boa rd han nnt held that consumorn Power in not entitled to know about muni ci p11 ta:: paymentn 1_penun_o, of Connti tuti ona l a nd nta-tutory law on the subject. Morcover, should there be a potential conflict between Federal and local law, the Board would & ant to consider, in light of the factual development, innuen such as the extent to which Federal and State law were in harmony whether the allegedly protective act.ivitics renult directly from Stato action taken independent of Connumern Power or vhether there were actions by Consumern Power Company a f feeti ng the result ; whother the alleged 1y sanctioned St. ate activity has an impact outside of Michigan; whether the Sta te polici en are in ha rmony with "aderal lav, ( cle. E.g., Pihe v. Bruce Church, Inc. 397 US 137 (1970); Schvnenninn F ron . v. Chl""rt Di s ti l l e rn Corn, 341 US 384, 389 (1951): T n te r,r.n t i onn 1 'P e l . & T,o l . Coro. v. Gnnera1 To1.
& Tel. 'or2,351 F. Supp. 1153, (D. Hawaii, 1972). It is extrei.. # doubtful whether the Atomic Energy Commission can or should ln*.; fully deny license condi tions recuectr' by Intervenorn bea ri ng upon the oparation of the Midland Plant: or upon Consume rn Pcwar Co.up? ny 's a cti.v i.t ies c o r.-
cerning coordinntion merely becauce certain of its re-n t ri ct i ve c et.i vi ties may have been sanctioned by State statute. Cortuinly, howe ve r, in making that decision,this record should n ot be shic1ded from knowledge of Consumers Pover's acti viti on in attempting to pnen or mnintain such sta tuten merely beenune the Comminsion may ultimitely find ( that such statuteu rentrict its Congressionally authori:'od au thori ty. III THl: REQUESTi'D ADDT T1 G'.% DISCOVPRY W11.0 I:OT D1'.i W Titr' 1>11 T.7D'i '!n3 The rulingc thnt ve recuent }iill not delay the hea ri n:;n . Connui.ae rn Pow <f r ha n recuented and obtai ned an ( s:t enn i on in ! I t
- 14 -
f 1 l c _
thene hea ri nrjn unti 1 thi n fa11. There in no rennon why thin addition:rl recuented discovery cannot take place
*/
during thin nterim neriod.- . ( ( */ Any ciniu by Cont uncru Po'mr Comp,ny of undue burden cert. inly vould not .t oply to a ll the ru.monted di ncovery. For exaniple any political filen in the Innsi ng of ficou could be produced vithout burden as well nn cubject t..itter f i le'- dealing with loginia tive activity. Dur>ng dis-covery. Con nutae rn Po. or Co:ap7ny h. c s ta ted tha t it main-tainn subject matter f.i los in itn Jacknon houdruartern. Dopo':i t i on of.Judd L. It a c o n , pp. 6 - 9. Tf there in bur-den, it in incurAent up'n Conr.u::ars Po ler Company to sho. . \tha t the burd<n U,. The fact that the Cc:np.ny han renintrd gi ; int; i n foru i t i on conce rni nel itn file ind i.cer do : not juit fv nrrnn:,':r that thi n nddi ti onal ci rcu:n-nerib'd discofrr" could r.ot be rradily couplied with. We cio note th:t the Ci .'. n e a pp i rr nt 1 y ha:. a fi1e in-dex which voulel limit the hu rtlen to J L 'of nu,yplyi ng - Llh no .4dr!i t.i or.:.1 docu;v :,t:. . _ii p. 7. _ l i; ..
o . IV CONSU:.11'l S POill:R S!!OUT.D NOT BE P):leitTTMD TO WITill!Ol,D PRO:i Tlil: BO.TRD .AND Tile PARTIES W11AT MW B1: TilOli!! AI:DS OP llE1.EVANT DO 'U.".:TS We renucci: an order of the Board allowing us to innpect docume.nts sont to Wald, Ha rkrador and nons, consumer Power Comp,nv'n attorneys, by Consumern Power, but not turned over to the Depart-ment of Jucti ce. the Atomic Energy Commission 's staff or Inter- / venors. On June 7, 1973, we reruccted the right to inspect such documents and further re~uccted ruch documents be retained by Wald, lia rk ra dc r a nd noco per. ding further resolution by the Trial Boa rd. Or June 15, 1973, Concemerc Pc'. e r refused our first renuest. It did not reply to the later one. (See Appandi:0. The b,chground thr.t necencitates such an order is as follo.ze : On December 22, 1972, Concurr. ors Pover told the Boa rd (L that i t had e:-:t ract ed a ppro.cima tely 43,724 pagon of di scove ry, which had been cent to Washington counnel for review. At that time the Compan/ said that thin effort reprocented appro::imtely 2 /3 'n of the Cc nL ri:1 of fi ce cea reh, thuc t ndi ca t i ra tha t there might he appro::iun tely G0,000 docun:ents f ro:n the Contral Of fice. C o n n u m e r.'. Po < e r r. ta t ed :
". . . [Tlho filen for the following hondcuarter
- 1G-
officon remain to be ncarehed: Chn'irman of the Ho7 rd and Preni dent : E::ecutive Com:ni t tee: Director of Divinion Adminintration, Ib:ccu - tivo Annintant to Vice Proni dent-i n-Cha rge of Div.i n i onn ; I4anager of 14a rheting: Genorni fu-porvinor of Commercial Elcetric and C: 7vern-
- montal Servicen: General Governmental Services Engineer: Arca Development Department: Direc-tor of Area Development : E::ccutive llanager of Electri c Trannmi nni on and Dintribution . Prin-cipal Pngineer, Power Facilities Planning:
Bulk Power Production Department thnager of Bulk Power Production: System Opera tions Su-perintendent; Project 11anager, h rn Unita Ludington: Project (' 3 and 4; Project !aanage r, 14'nn ge r , !4idl a nd : Project I@nnger, Palisaden; 14annger of Electrical Engineering: Electric Transmi nnion and Di ntributi on Depa rtment : 14anager of Electric Transmi ssion and Distri-bution: Electric Trannmi nsion and Di stribu-tion Coordinator: Assistant Controller: As-sistant Sccrateri.cn (2 ) : Assistant Trensurers (3)' Director of Govern::cnt Af fairc ; Director of Civic Affairs; Director of Economic and Financial Planni ng: Pornon71 Attorney Filen: Director, Public Information . . . I401 i on for 0rder I4cdifying Procedural Schedule"(page G, Deconber 72 2 . 1972) i With regnrd to the fi eld of fi con , Consumera Po zer stated (i<1, p.7):
". . . . Tt nhould be noted that the Comp:my han Luclve ciect ri c service division hendenar-torn und 26 )cea1 di ntriet of fi ces located th rou.;h ou t th locor ponin:u]a of 14ichigan --
of fic.:n '.thi ch a re a n far a . 2G0 miles from Jachnon. Theco offico, e:2. ploy more than 1,100 o;weeti/o, profr nional an 1 nd:ai ni n-tra t i ve en.pl o;.:< en ave electric cervice renpon ibilitier. By cont ran t, t h e JJ r.<:h mo 17 -
11eatleiua rt orn han on1y about 1,000 nuch -
. . employi'in (or lenn than one ha t f of (he Lot.a 1 of nuch employeen). We a re 'adv i.ned that.the fi 1en locat ed in a divi ni on, head-ciunrtern are appro:-:iuately comparable in bulk to thone in a major Department"in the Central Of fice 11eadnua rtern . "
During deponi tic n hearings, IIr. Judd Dacon, the attorney who cuperviced the discovery, admitted that fewer documents were cent'to the partice than to Washingtcn counsel. Deposition, p . el 2 . Ile indicated that a f ter the filing of the motion, at 2 cast 5 figuren of addi tional documents (i.e., over 10,000) were un-covered and sent to Washington counsel, id, p. 39. Consumers Power: supplied to the parties only 26,000 pages of documents, of which we ec tima te about 1/3 were duplicates. Thun, before completion of the scarch of the Jackson files and of the Divi-cion or area of fices, Consumers Po.or had cent to Waching ton ceunnel 39,000 pages , or more pngen of documents than it sup-plied to the pa rties. If it obtnined n,o additional documents f rom the Central !!cadcuarters nnd only 10,000 pages of docu-monts w.or obtaincd from tM fi eld ofTices (or en3y :0,000 additi onal pages f rem both placoni , it would have sent to Washi ngton councel about 9.3,000 pagen of documents that were never nupplied to the partien. Ancuuing the furthc r nea rch of the Jachaon of ficon was productive of some additional docurr.cnts or of fi cen , the that morr, than 10,000 pages were obtained from fic c. dinerepancy would have been grear<tr. The c:uection in wha t happene d to t_he ronn i ni ng dr.cun < ntn . 6
- lit -
According to Mr.11 acon, the.fi]c nearch in Michigan van condnet ed uninly by .nttorneys and other profenniona]n and not by accretari en , file cicrhc or other untiained pornonne.l. It vac 75-27. Fur-supervined by Mr. Bacon, an attorney, g. , pp.16-20; thermore, the. poosic actually pulling the documents referred to in-above ' had an annotated ' copy of the joint renuent and wri tten id . pp.14 -16, 31-32. Thuu, the documents structions of counscl. _ sont to Washington reprencnted the -judenrent of trained nenfonnionaln,
'l that thes conenined reic'innt enteria1.
In thin situation, it appears wholly unrcasonable for Connumors Power to refuse to allov c::cmination of these 1/ Indeed, such refusal would documents by anyone.but itself. , likely mnke any conclusion on the merits in Consumers Pover's favor 1cgnlly suspect. Therefore, Intervonors respect-7 fully reoucct the right to. inspect the documento now in the . 1/ Wilo as.a partv wo believe that wo have a righti to incpect l the documentn 'themoclven no that we may have factual basin for making a judgment of Consumorn Pover Company'n compliance, other a l terna t i ves 'a re th;.t the trial panel or one of i ts memborn or the Atomi e F:ncrgy nta ff veccive. such documents and c:mmine thein to determi ne rhether .they vould f a ll vi.th i.n the discovery re-ouentn. . s 3 6 9 e m ,e. - . . 4 ry, . . .~, - ., .--r _ _ . , - , - - 3 - ,- ry-~ - - ,, -y y
6 v
~
1 ponnennion of Wald, lia rhrader and llocn . / If there should be any document subject to a speci fic clainn of privilege or confidentiali ty; we reauest a general state-ment of the subject matter of such documents and a statement of the specific grounds for withholding the documenta.' We furtin r recment copien of the instructions used in the dincovery and an cxplanation of the nunibering on the documents. 2 / Fairnecs demands that Concumors Power cannot be the solc I arbiter of its own compliance with discovery. 1/ An the Board is aware, we note that for months we have been trying to ascertain comoliance of Consumers Power with the Joint Document reeucst over its resintance. In denositions, Cansumers l Power even withholds information concerning the numbers it has placed on the botton of the pagen of discovery documents. Depo-si ti on of Judd Bacon, pp. 2-?; deposition of A. II. Aymond . It han refused to give us its inctructions. The deponent that Con-rumern Pover made available (after the suggention of the Chairman of the !!cn ri ng 130a rd du ri ng a con ference call that this van thc' [ proper vay to obtai n discovery) was not f ami lia r with the deta ils of the filo ce,rch and admitted in responce to Nepa rtmer.t of Jus-ice anentioninr; that perhnps he was not the proper deponent. i_d ,
- p. 55. Indeed. the deponent supplica had neither direct knowledge of the mechanic:. of the file sc arch nor poliev decinions to with-hold docunentn. igl, pp. 20, 2 rd , 30-3*/, 12-44. Conce: ern Pc.:er hcs even : efused to divu] ge the na: ret of thonc conducting the actual fi]e unarch. id., pp. 11-12, 2/ Consur.v $n Power's une" plain d " wor'. product" claim for non-dinclonumn of nm.hers i t placed on documant o that it cupplied st rihen un--tc, nay the Icant--as straincd. M, p. 3.
l
CONet.tiniON Decini.onn made in discovery bre of great importance be-cause to a la rge c:< tent they determine the information tha t will. be availabic to pa rtion for trial. We do not anh the Board to re-view its pact decisions lightly. 110weve r, new documentary evidence demands factual c:.:planation to enabic a fai r hearing. This is copecia lly true of the poli tical documents v.hich provide opccific ( for cuentioning Consumers Power Company's activitics. basis Consumers Power Company should not be in a position to investigate itself. Consumers Power Company has inciuted upon It han dema nded tha t overy comp!cte compliance from Intervenors . answer be verified, even though thic has meant going back to client." many times. It has renuented and roccived c::a c t identi fica tion of answers to its document renuestn and interrogatorier. This is i Contn:mors Pcreer 's right. 110' ta v e r , there would be a grent inconniity establinhed for Applicant to demand thin detailed dincovery from interveni.ng partion and even non-partica, while holdi ng what may be 33Lerally thounandr of document s f::om the Boa rd and the partien . Our rer uent, to inancet docu:r. cats in the ponnennion of Wald, 11a rk rn de r and Honn i n c3 ca rly: junt-i fied to determine whether there han bocn co: api i n n eo .' Thin rer uen t- pron.nts no hurden and thode documentn
~
. .x .
n ' L
-were gat.hcred and nont to that, flim becanno in the jud<iment of th<. ,
l ' file searchern, they were within the Joint Document Itenuent. WilEREFORE, we roguest tha t thin motion De - granted. l
~
I. - l l Respectfully submitted, i I b I
. C . .< .' ' -
l - l(' . Robert A. Jablon One of the attorneys for the Municipala of~Coldwater, Grand [ ~ iia ven , Holland, Traverse City, and Zecland; the Michigan Muni-
~
cipal Electric Association,
' Northern' Michigan Electric Co-opera tive Inc. , and the Wolverine Electric Cooperati'/c, Inc, ,
i Law Offices of: ! Spiegel and McDia rmi d ! 2600 Virginia Avenue, N. ' W. , Washington, D. C. 20037 l l e ' l 3
~
1 u
APPEMD1X , (ORDER OF APPETsRANCE)
- 1. NEWS ARTICLES
'(a) Detroit Free Press, "Milliken's Pal on Utilitics' Payroll s," dated Aoril 23, 3973.
(b) Detrol t Free Press, " Face Ousters: 47 Skip Merit Tests," da ted Aoril 29, 1973. (, Ici News article, Mi.lliken speeds his ethics unit," dated Aoril 29, 1973. (d) News article, " D i. f fi cul +- T ime for Milliken," by William. Baird , dated April 29, 1973.
- 2. LETTERS Ross, fa) Letter from Robc}.t A Jablon to William R dated June 7, 3973.
(b) Letter f r oin Kei th R . Watson to Robert Jablon, dated June 15, 197.
- 3. r:mc y/s.7 : r g"gNTs I ..)
" Cor <:vme rn Powe r Cerc.or.n, Rv;m.: ) t en Bty City Comne t i ti vg Si t.ua ti on (111 f.crii.i t.i ve s ) . " p re n eis t. e d by W J Jef fernon et al., Dincovery Documentn No.
007324, 0073 3A , da ' ed Imr i 1, .965. 1
^ (b) "Momo: Ch ipimwa 11ie,th !:chool," by Oma r 4
'Girbcrnon, Diricovery Document No. 23861, dated Acril', 1968)
' 'c) . "Romarks of Jamon !! Campbell, President, i .
- Consumers Powcr Company Press Conference, 4 ,
2 -Boync-Mountain Lodge, Boync Falls, Michigan," Discovery Documents No. 23001-23006, dated i July 19, 1960. - Doposition. of Judd L Bacon before 1-he Atomi c Encrgy t) . - [- Commission,~ dated Junc 6, 1973, pp. 1-3; 6-9; 11-]2; 14-20; 25-28;- 30-37; 42-44;' 55.
- 5. MICII . STAT. ANN. 95.2079, " Permissible charter provisions."
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' ON GUARD FOR 141 YEARS f.jc Page 13, See:!:n A 0 Monday, April 23, 1973 Vcl.142-No. 350 .
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- 2. . II ':acn:Ist pr.':ica: confidar.t of Gov.
). .J:: r. v. s ;-id 50'" . hy :he acverr.ar fr.r
=': L.. ':. . .:T:n.,'q,yttyJgr.
d YGHl ~ODC'TELOT)S . e
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1
** . . s . knew r.! a .d say. nyhing rion arnounted to a SW-a month retsiner when h3 Ntither Mi!!ik:n r.ar Gr.td.>a viet.ed the nr. i
** - ?
- ti 2 d.2: rc : ..! the co-f: dant. Donald lei; :he s ::e payroll in January.1972 ran Jment as a ccnflict of puh::c and prie::e '
.-d: :. :ht t ..< t . or's 5:ste-paid chief of The retair.cr wa.< paid out of Milliken's per- intere',:s. they said, because Gardon was not "
; .::: ;. .:.r .scx! p,htica! fer.d. on th:: sta:e p:3rc!L ,
I: ,. ;5 C:, :.....' who . b72. sa*d I:r.t ue k th:.t he Mij!.:.cn's p-:rsana! political fund is fin,necd [ . / - -da a c".r:r* .u:A! de:1 behind .~.1:ll: ken's ?.TTER !.E.WI.NG the stato :nyrn!! Cor. -
/
dc. .*/., tha lives at Ced:r. Mwh. sc: up a byna
,A tuie afba,ti se!d,tc, by anmm! h. .a.ay ;mrty. -
.f.: t;. ., u.,::c.: Itcc.,rd::'s Ccu:t Judr.c. r ra;:;ca nc .r:y SS, .O.0;.) : .:s year. 3
.= : ;.r. s..o de:ing the b,.0 gescrnor's onc-:n:.n consuh!n'; scrvice with only a tc!c. llo..:ver. sa:nc c! ?. ::1. hen's ::;.fi msnt:. r2
#E'~~
,~
phone anocring scrvice in r.carby Traversa vccre deep:y diw.:: hor; by Gord.Ws d; 1 ra :. 7:n d:- .ed :o he h:r:n; cf Oc! Ris*: ;;Irl Ci! . the goverr.cr's hcmc:cwn. fc:.rin;; :;u: i: cas: ru:p:c;cr. e.cr :he govar. . .
>: 4. Mr:. G.:.r.fr. '.*cG.:;re, en the ;.ver- Tnrce n:cn:hs la:cr. Gordon sign:d a cea.
tract w;Q Cens -r. cts Psnver, D::roi; Edison nor's o's.cc by givir; the cr ::::.: c th:t , - -
*fr :c'! s: s : va6y sa:a:/ c' ;;S.G0 foi, cr.d M; chi:un Ec'1 Tc : phone for a si:ernon:!i . .. Gordon was an ur.re,;i.e.: red 12;;yis: wori.:n; b{#~e C"'J ,;c C - 23 # SW4
.I. ; v.r; :...y n::'t. 2 . / J; ~ !>> ; 3 (":ct rese:rch prcject. Each compar.y p:Id Cor- *.
'/.r: a N.::i::i at. ,:r ar.d ;::5.r.s1 f r;end ~' ' '
P!cesa tur :o P2;;c 2A. Cc!. I-thr.e s.:iley firms.
< *.* 7.J.v.: G.r:;:r. w:.s piscu. c what don Sc.ItJ--a total o' 4:3.755.
u ..
g'
- h.nttr. Apal J 3. W U8 '""'"88'"'"' i /. . s , ,
O O .].3 O. -9
}v. li l l].O h 9 .dlMa 10.6 rl }')2.cg
- t 9
c9:...J llH 1 I d G ... r '
- u.narn ann.eint c,an,, Gordon even telephoned a i vive 1.:gh .ni, n't:4.t, na I'rce Press rcpater to dis.
O Coah.r. ued front Pa;;c IA o * ;.ima nn tc. .ny n. s .in ese cnit s.e. c v.<en-r sa *r ..ir, ras., aa.. no sn.n. v here c. a..a m a< . ..a- clos.e that bir. grri:s IM.2 in. i.s. ..e n .. .s e 4,-i n. a.a. ..>..n wut r>., IIE ' mverr.or,s ' o'h,ee wrie .i; cu r.t ah n e .u.'h. siacera iv rove aarN 'a'a". I'" 0.ord en sel.ss =9 86a ep- ihe af.*te Im.J 17a. p.s.*s te g.g jng 'nh* b'a'. $3h'II3. IVP1-
,With bi4Illhea'$ hjeNS!hys. pearcJ to r. cwte s4 . st.c i.inne or se tre e nyt. .r- P" red w.th i h.is <tah: salary ri, .
- h* *"#'" U"'ana rarhaps w.* M a 1 . '4" Till:1:l 15 nothin<-a Hle a.l . 'a.'.i.:.'.ir ."r.'
.. .;- '.'. 'u ast la ras- sa 8 r- H+
jn S.a.. ( ardon d.d.1:ut . n;e e rona ., .i c.a.t;< .m.< iia. baner g..s c,. .rre'ii
, iin.nt .nr. . '.. u..
Mi sfas s. se. M.naca o- ior.cy thin ansime che, v.I rn " ' dMah:^ ru!c ran be \icried d 'i'h *
"'d*"**'"*"""' ,cua'v,'id. uc ','p '.m*N. ni, ci o",
i sit hi !.fy iniI; toper ara [ a vin.
. ,,.. rm es a.,a ,r. ,,i J ..n.. ,h,e,.uttr.I
, aut et t,he,,,,t.,,q.
,,y,,p,,,,, ',<. r t-3atian c; personal r.nd p.ditic. <'it, f.a'ia? ai: omar e f e. o a. ttmiv an< a'ar. "run.*
cart'a a s ' 'ana 'a ras..ri :m re..te<nda . en, c,i ,t,,,i.n, ,
,,,,,,v,,, g,,,..i,,,, 3 y. trasiered l'y lie f;ta.unt =as
.n in de-al c:Lics. andee anc s ire u.mt sa. rs g# 'n WA'C (Ie3rIf in a pos. whh h wr.u a
- cad tie i D.sca. e e '"'""#b 8'"k
- lcfop a r e p n I tn iavenv presis, a root.sh of r'enp..n cs d.. lC IH'!D sha[.0 thd ""Over.
or hase t%e appear n.e if in. na in;p.artan* -
'**? " """"7.;n'" r'm'e"t. i ther p c r f is r4 t
. ""'.r"am.'"'"""***"'
pre; luA ni,,g;g tidn!. ;" e
'P inn, b' Mh;F .
.- 2n rnie w; c o.is<trcr.un ec.ua-oe e ir ekte. a-,tia- GORDON is a short, mild. corde wat ade t v.tv ihree 5'"""5 t.~i cataa4 e n,~. ~.. .. Pe,..;.cf,; r: cab e v,i:;n .
"" d "* F!! lit #d d'""'- b " '
""'"d"#'' 5d"".,n u 1 i I i i y rc;;u:ation - around the C a p it oI. Many wm 3ny,wr".,";: ,."rvice,'"ri,'r u! Je r,;;e.,0c;,~ gj p . .,.'I.iId th" 5@? 'ni* elf b' the ca.ar.'o.
ar"d 'f the 'A('ad bv er Mit.hi;;an pntilicinrs. bn:h 1(e. 8 d d"' g y"., C',rJr.n rise nt restme ide , h0' P E"U' '"" "d Ily fr. cne en.idg.cr - - e'h'sw ".m'do a n' 1- e. ' I ochi h:. affceted by 1.is lo}. wh:ch'e ' f M.:taca
"'c e '"*"'.:~mver '*n.'t. lies e he is bein:; 1k'*"' ir.nde "f tan' f a ll w , ,, c.3 i.a cy. w.o a hy :o '....t" * " r f. he we,ca .me ite cc w cr e;i . ; uy in WI Rio (catrocerav ti) e n had cheri m in r -
'. pia,., I take the .<.potii;;ht of the cim. r,I";"y,,'.;','-l'g,q /.N ""
3"sn.un im 31 b 5.L=2<a'"n
,,,,y'*...~f 8:w 1 :st Crr/en sat ,,ia e,3, 3.., , e . ... . ,g..:, p:ian ecai en Mai;wn. C"Pm ru nt 'ee ~
l- L ofo. ce. 'ttic:". !. c nnt: a the inusi ases! isto ev e - The Governor' has"snid he h".1"_t his Y
,x.,w' **.p su;w
^-
-.m ~pa" s.! cas if,.:.n:c.. ,y
- arrutne e f cod..d < r i-ter- .Knevi nothing o. the .r.o-r raiu- ca s esi. htt ta a.
org.a.;; ath a y~- , di:.cuv."e'd, i g 3,t .rrt, atma c, v ett paign deal or the hirirg of .
""'""h"*""
85 lev $'i 4 nes' i tre rea- Mr .. Mc Guire. Ikl Rio says r'* rarer frs.a :m i i m t. ifter <pallil.cn .e t.dmini<r.uio :*'"'.,.,e,
- cerard ruse.in..
c.,,3,3=t', , ,..ne',,t ,;, ,,co, p Iu W ed sti .rt py ih!c trea. the Wrnnr km :.m hiih.t. i.e t caru a<>cre i., a c Pres'dat af a Tr< rr>e Cuy gn3 g.
" 1 Indepen:.,c n: cr.vi-
' Gmde,a obvious!r was under t.ccwe e cv reirca om c-i inter.*.e presure whca a l' ice
,'".r t #d,'.c :d sinuW. os.pcin al-to a cra-i;gy,'064ee:ir.a r,a,c,;.ncy,irat
. g8 F. n for i,,..,, ,3 ese i,a n;, r ..
,,,,,ae e,,, .
P r c s s reporter urat talked p:2.., .a
. in. c. iv , ,,a.i with him hv telep!one Thurs-
, ;,,f ,'" grmt..ua:7,3g.rnne, are o.e i; u .. .. 5 <t ,*i e et lwlicopter rotor blade rom-g'q f $ cr Ib drp:rin .;;. d ' cAley ' 3'"Ww ' i" .". te of'c.1-M.N en . day about his relat.ionship with pany for a year. . serv.arces (ryN.s. .. stee is, si.we r n ce. ~ the novernnt's ofn.ce and the Jc s
,'" .. {I ar th.'l im iede.
car.fm ernwn r., utility companies. lie served in the f.hc b:r. n llou:a in 19f;m :n.d n;r:.nie ggI,5;' Tren c ,U;[','}nt al p: o;rc. ' ';'(' 4er mj , uim*ca b aiAr ? .'u VNen n l.ed if the nnverno r 1,h!!ila n's t.g ani:. tar.1 u:dle .
~s ...d t r;e ;,e
._!.he irin o 'i?.ni t i'frDr* pnid bini ra:t of hi.; !.irth.!ay ec,r s drise = c;a Pia 3. a c p:n ly fund. Gmdon r.r.iJ: "I M'ibh. n was heat < suna noe Ydcr.d
;3 , ,., J.a'!f U'M:'tal so:ce. 2 don'i know ufu re he g(Is the nor frotu IW to UR le:a a" ar n t:,:}fj u for a br,ct e time to he:.d 1,.u g,.,,,,,,
' . P 'I'# [.$iNINNtI..,i',UM rns ta n ni-oM 19:<w. **
money. Itc nn:y pay it out t.g slaw labor Depai:nvr.t. Ile d b'r '"3 his ex.n pr.chet fo: n!! I know, .,d'M'-~S WO::!:r ; I o r '! 5- ' ' I su!nait lavoict s a n d I'm N Mi # '
- M 6I d '
- !T 0 ..:nnie , cr;.g,a .do $'*cNa*U$h t s.e s in the nort rno 's oho in ! .'in
' c' ti::o.t ,an uw :3,- ptid.o January, P;G. unt.! Jnr.u.u). .
r:n l.'...! \ c:i r ..*ita a. te., ;.. ,. He ut in i r.!Mre*< tre-J'r u .,~eris M: ,i'in,.Y *5 Y',." " 'N#d *
' cliems were, Gqka reppa:
N "D PE ,8 r ,.u *e o crwe.""" '" "' T'" "^ ^
.;i. b" .", "" k7 ,,' . '
,r o. ,: t ",.,
' iiII" 3 L0nd s.., "-r t.,iar
- D* "e ' * "n". c' ."r. 't -* W.no .of yGar bu '.a. css."
- .".s s.on vice-;; o:'. dent far f.:.a..'c
- u . '.k L<r.e m'. :.
* 'd"'D 'I'* r"i C '= c;.tr raica t h a ( a fhim Odd N.1;rce Pir:-.*
( .ter d. .:t rcLs rd 10 n .r.' t'.O n'e v.r'a 've r" o.- r."- convaltar..<l t at n!r.tinn .h,ip is the raine as th st oi n lawytr "Wn Gc r dcn vidsd lor tn c) ni ;,, .:: "rna ... "b. f.r e to r es . ii c w . . as a coa .nuni.e. 'Io the la .! < f
. * -y'n fre :v:.6v i.i lie m kem e.d r a-'ch ta ""dL:c
.- ' b ."
- cin. 83,w e nor i o e : , e e '."'g . Adm l' +r . SY b 8 "d ' b'U "^' h ' *.* C '
c.,rre. o..,8 tietd s ti c r.a i n-e IN A S,'l' 5! .C . .. t, .... .. .u sc r.cr. the nou f.v r's p:.yrn I. 'l.e re-3ru,,,dih..r,,iji,,3.Jsunm . r.d.' ,3.a ,t;,, . ,,.g g ,4 u,. t r;:ited hita on -a onc-thae Ila '. i'ul n.a 7.,.,.. n,.. nct. ;r pa n a ; ..t of tclq. hone ( cc.ver:. din:P.. g, ..,, h o '. c y c r. Gr.:da. . : r:he 4L
. . ... . . ';i.,' ,",Q, l *** d
'f t-e
? In<cd.
p c.c.ev s ..t i e t.n a te r en;7ai.. Vci... ., .'ay t 3.a g p?.- ba. i . brr.:.t:. e v.c L: . . he
%" ~ -
uvuld nac ti . .aane cra"ht t.,. ,' *' l* ~ b
. a.'." o. a i.. .u s
,,u c ..r :a.u.a . .n . .: .4
,,.,,...,,,., ,,g,,, g,
- ace.;iat,; he v..u g,:dd I,f h.e go, t.,,3 ;c t.itt. the nn.i t.
I ', m {e ,y".,[.,l.,', '7.', $'l'.
"-.8 l >~ -. a utilitir . v.. s e nd.t!< r.. t.f j.ubh<- nor. the la ni .latuse . mal the ti s.....,,,,,,o,,,,,,,'
- i. va* = si, I e. . Pre - d.' reconf. a:.<! t aial Miible n b.nl F e"*n I
+ , <1""I n d I b f id " " * * ;.,.., eng p, Ic,y 3,im 9;*t .o 3;g,g
,'".".e .i
**b ..
- e. ,s.s n,,-
mt u.r a i n 't *d"<
!. ..- i.e . s. ..u. o - e r 8 -
} rar. ilusing v.h:. h hn wa to ,
sa . . . I,*',),,1,,*, ' ,' ,'T*" 8 subnat intr nit eso h w..dh. de .i. . , a * " ' ' " " < iwe.d!< m oder t rt'L t al s, ,3 ,. . l 4.n a.. t
,- s.. t. ., ia.p.h r .. r. n... .* .r..it it.-
p..vrn s.n a t. . e _
~
. . . After the utilitin repost wa< e <
camniteted 1.nl f.ill, lop a vi u. ! . 1
- liscs sif all there renup.tniet, l inclushng th.= l.rc*iiltnt::. m de e ptr!.ent.ttiter.3 tes th. pn cini.c
' lo hi t. otfire, tre le,-i.latnr.t at . the O'JS l'Isra llatel actiws
' the strec' from the O.pitol and
- to newsmen at the Dettu Ath.
letic Club. l The prc<ent.it'ons were ba!.cd en the repM Gordon had comp.' led.
,.' Gordon ar.d Gaetz said Gar. .
" don attended only the Detroit -
presentation. l
- s. .
G O R D 0 N 'S ret.ui >rn.'dp with the Millil.ca a !mir.t.sira.
, t i o n was abrop:ly sewnd ;
the diy Gordon ' Wr6csday, sent Mithi.cr i a Iciter cavim: ! - Gordon had mm:c - tan 'd. r [ a with 1% l I;in o I Cordon also resi:;ned from . the ('icil Scivire O.mrshie.n l sv4 tic -. filter.
.-: . mat a slewest 1 y.,*
state pot'.tiei. $ nt at p stia n t.t i (. f sttst. lo put lite Dd Rio for.;rgy:ssy l
' ' '. 1:Ut inform;.1"oS (1.6ct ti.e Ikl 1%s de.nl S t.ps toppie,;
n op A 19hr camp *.ign >tst! raam. leer tolJ t!.e Irse 1reu v.. Ja.bi stablin the ;nserror's 'g l 1974 t ar.tp .;*.a f.nsntf Ari<.','I test ei tut.ti - f re.t. tr k! bag $5.*t IN t I:en cg.., r, J a !
$7Al Das to c'htir::
Stahthd!! i n nys.., 3, ath.
. M , ngr .a. l
. f t. .kv as.<? sr = = - . ..'
Iwe rien f.i.t th? a've r.'.r% ,.; suc. - ee.m neet .n3Aem.1 v.o e;- D l.u its*c's )fra f*.M." -: .
. Del Rio furicady denied tho story..
P,u: S:nt.lin r.nid: "I won't
/
~ Stablin d;d wir. ment LMt ivhen Del liiu dem:.nded the
$7,000. "I found it for liim right tickh . . . I was 50 sl.m.h up when be was dernas.dir. -
this money I d nf t I now v.).c i g toad: the chet). oat to " 9 J d m I 9 ) [ 4 r-- , . - - - - k ,y e c .-wy - -- m
[i
. e -
I ?,Yt 63 Q3 {
~
(' g (D Ci i bM lL./ d, / . T Q *ii' _ t' ' u.d l V k,/ _ , ~ w3-(.73' r= H o 'o a n3 rO P *p*
~: ] T-1]4 ,
UVl (3U;"1 Tj i fpl oG 0 (;/ *: ' %.s)0 h.g U s'.L.'. QJ l7WG d(&
.c.
IW 1;Of;l:lt I.A W. years a;o to inwlaic it from mer confirmes to show no to
, ru. em. w..n wu legis!.. rive and nmcrnors ef. sults. Crim said. '
l 1 ANSING - Goe Mi:Arn f:cc pre.ourc in hrm;nn; ainut Crim said ht did not know piedard M. .: day la com!. h.s a "clasWhed. dedicated work how to evaluate ibe I a r ; c - - so.mer.:b. r (wutive ris ticc force, frce of pontical spoJs number of "provism, nals" on staff ar.d weed out any un- ..." ' the emutWe staff Nt sad h ; needed cal..ove- ' .
"We are very fearful today was boninnin;- to see some ..
. llis a .w:n , a ment c.. nc in Innner that such a merit system.no paral:(1 between Prcudtnt ,
ihe w.a.d .4.. m iin. . 5!alf exists *" Doyle s a i d. h. .ixon s R,ater;9te affair and , cmbat t.18% .s.c;s S pn. .o.... .,lin, Thn b. lSEA has taken the. com- M:lliken.s ...cGuire.Gorc,on (p. i - r.no ha h tcui emp!ove who nuu: n and sinner into court itodes. , was 6:3d iar .. .in;: vh .ualiv on 10 separaic issuc5. '
"In edch case. the chief cm a :. . cc.3uita r.: paid 1 ouse Ma.inrity L c a d c r ecutive hr.d thin; s haWn that no:hin$:v privat iv ..::r.::
...kca w hn dna. Ihbby D. Crim. D.Daisnn, were ala.o,t inexcusable that t
bled ad :d .idviser to utihty cr,nfirmed that he has pre- he wasa't aware of," Crim companirs. pared a remh:tien in set up a said. } 11 alto ic.:: card dise* cat::c Apecial lenislath e examina: inn - {
"The nnverr.or (bims he. dM i b y state personac! dimtor of upheaval in the state's per- not kanw anythin;; a b o u t
- Sidney Sir:ne thr.t the rrm r. sonn(! system.
nor's n:6ce: !.as C pravi.innt:1 Gknda McGuire, that thr was . A special committee will h- hired or what rJ.c was do;n; .
; cmp:nycs - persor.s v.ha have. .
I created if a Repub:icar.-c or. ; It s(cms hke Don Gordon i; *
- nr.t i.r.dcr;;nne state merit sys- tro::cd Scm.tc inusti;;riti:, ' ;oir.;: to-have to L.c the sca tem screer.in.'
t committec fonrad last sura. goa t here." .. .-.. ...-,.. . pc-W I T 11 O 1: T reiercrce tn ;
' thme desc:.gr er.ts. MGM..
l
- sahl his est.ctm c Secrc:arv t ..-
g i Wd iam :cuinc.- a .J h.d; et t -
; dtrxtar Joc.r. T, Otra:wy arc ! ,
1
, starim;; r "rc as:cte arc tc:al ! '.j
.g, .j; .; .
review r,I crery . mpkN. " l- .
"if we c'c . m:n i ta4 any ' , . . -. .; . .
pa. sit:ca is n. " flu.v.s. . wi
- he nbniishe:'." niJ. "!T w.' .'
f:nd that ar.y cr.v:op is r.nt ' aprcpc:!y ni; r.eJ. perlw. :.n;;::::da:in f t.pp;opna:e *
'will !.e taica. action l. ,
The ;svirr.nr sr.:d hh act n1
- i As part of the barnain, '
WaN POl I:.Irt.d' d la rt licci o.7 ' Glcrd. McC g,3 0, a girjffh ad
- Staii..memocr s, t :.o he ># in virimdly c c r y caw were of Del Itm.1:nd d ten 1.c r,ov.
"hai d.. arin , . de.hc.Gid c.nd crnor's J.a 'vic:1 in an Sih.M +
po.iticn rine of cinh: in the
- corn; t .cnt."
cxecutkr r, f f i c c cu mpted ! Neven!.r:c .s. It canu :.t a from t iol . :vice. fi:ne of th?.n turm .:1 in 1;cy-ca.:ac nt < mp;oyme. > and 11 was '.:r s. McGuirr ulA when the four.: arm!. r a. tate we4 pgfir:d
, gon hvmq.,ik mpm for iac c l $
merit cc.nua: .shia is re daced On .%.a.by. (. ordo i w n n. '
- m t v.o nor. ha r , nrJ tht.*. :.:.i- '
IA" I" t ,i u *kd la h.n c rece.ved C.fm i 0nc vacancy .:s r: # : . . t,ne . ! Int year :.s a ;:.wr rr.ori t on. b . reunrar.ca r.,De rni,r.,!cs. ! suhant, p a i d frorn p Jahr:d
- ta man D.Q P:J!.a ,,the
,3 y,g ,;,.,vhm 4 m s.,
q rs.
i.. it.. 7. sinr,as..a n, .
; ,.pjyg g., g f,,, g.,. g ., .
N D. m ..! (.m d. . v. h41 r red. d thrcc o.' . t h e s t a t e 's "l i"- . I w.:Isn.r as ..,.,,. c :. ..5..
- 1-cui .. u t e n. :cs.
h w % crc:ary. c xe. u. *l . JOi!N 1:. luiYl.!'. c3 en: tis e 1%:la. , c. . . [ t c r }7ir, , ; ,b r ~ca.r of t . 11.fJ.'t-mera!.er
- I"J: d, m s ..i;..ae,:; of t;.r ::ite # '
i ,% ,L.;ar,.s;a y 1:a.p ,,yr3 A s. Cor.
- t(Un*.a rc.st ..n. (J n.h a st d ;.;;r b.w.;.i.b.
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- Stenun:t, & McDianstiu 2600 VII4GINI A AVrlJUt*, N W. .
WAGlilNGT ON. D. C. 20037 ' groxcr crercrt'
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c^apaa J 5'"t0" June 7, 1973 TELEPHof4C [:02 ) 3 33.png.o e ft g p r H T A. JAULON p.s,g s N Houtwooo (01., Sar o.ly) JAuts CanL POLLOCM William R. Ross, Esquiro . I Wald, Harkrador & Ross 1320 19th Strcot, N. W. Washington, D. C. 20036
Dear Bill:
~
h( During the deposition of Mr. Judd Dacon yesterday, it was disclosed that Wald, Ilarkrador & Ross has in its pcissession discover'y documents from the Consuncrs Poucr's
-files, which were not turned over to the parties. We_
request the right to inspect theco documents so that we can independently determine whether they are within the scope of the Joint Document rcquest. Where there is a specific claim of privilege, we request an identification
~
of such documents and a specific statement of the claim. In the ovent that you do not agree to thin request, I request that those documents be retained in your offices pending further resolution by the trial board. Very truly yours, h Robert A. Jablon R7sJ : 'j d f ~ cc: -Wallacc Brand, Esquirc Robert Verdisco, Esquiro O e t
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1:obert. -Jablon, Esquire ' -(g .::ufto 312- !M 2(,00 Virginia Avenue , N.W. W a::h i ng tor. , D. C. ~20036 ( < rn ar Dob: We have your letter of June 7, 1973, requesting lea *.'e to c>: amine documents roccived by this office from our citent, Consumers PoWor Company, which were not submitted
- or ' inspection in response to your dis covery reques ts.
None of the additional documents which you nc.i nen. -t o inspect are responsive to any
- discovery reques t in t :s t :: ~ proceeding, c): cept those to which we have e>:plicitly c 1 a 1:ne d - p rivileg e . The. Commission's Rules cic^rly do not
; c: m. 2 L discovery of such documents .
(~.
Sincerely,
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t (.a .- t 1loith S. Watson g'b . . 1;SW/rrcy t h- l-l h .> e ..... . .
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s s -. . . CO:; SUERS TCT.G:R CCMPA'.iY
*( .
Report on Bay City Cc.getitive Situation 1 3 i#' .
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Pre::ented by': -
. U. J. Jeffer ca V. !!. Brc.en -
R. L. 3'aul ~ ! L. /.. Yr.uj.: c .- i
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. h. If Consumers 1buer Compasiy to cont'indte to .opernt.e' its c3 cct.rie
). , cysten in..ccmpet.ition stith the Day City Light Depnrte.cnt, the }. .. - follo.cing may ici. rove the competitive situation. (a) Ilegotint.c n new wholesale contract on the Ccapany's
. strunlard Kva rate, nnd suitable joint use agreene it cnd ac* counting of services initi,ated. ,
*(b) Increase electric promotional efforts to attempt to reverse the present decline in sales. Such efforts to include: .
- 1. new sales progrens -
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. 2. new or revised service progrn=3
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ndditional - h (c) Increase gas sales prenotional efforts to gain gas
,e sales to help offset decline in cicctric sales a to reduce City's electric sales gro<th.
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.C..h..il us e.c.a.1111 1.:. .. S..c. .h. o.a.l Franh Shinu ich ant' Y rpt uitb i1.c Ch3 ppeua l!!]J:. Schon1
,,;;.1 ri c t ' P.<inril a t 9.:00 P : in the necain;; on /.pril 19, 1968, to dince:..
the ~ e):tenni( n. of our: cientric nud nn:. ::erv3 cc t o the propo.:ed bir,h r:.r!nial . 1.'e dit.oinned o::r contract ra .e "D" wi.th .the neuburn of-the board ed which there ucrq four in attendcuce plus the nur: riate:v! cut,
; r. .lorr,en;;: n . 1.'e .:1::o di.: cue,.ted the entenMon of our natural nan .'ain 1 e informd t he board thut it uould be necci.nnry f o:.
to the hi.h t school. Connu:.ern Po.ter Con.p.my I o have the naturn) ;;an and electric nervice to the hir.h nchool in order to extend our natural :.;ns linas to the school.
*lhe rennon fer thin being that our countroction cent would he 1cun if we could work on bot.h. at the sa:.ic time. , .
. lir. Vern 56ith from. Tri-Cqunty '!:.lectric and bin nupen -
( inteudent of construction ucrc.there to prennat their nido of the story. Jir. Sn.i t h ca:. very unhappy,ulth Consucarn Pouar Cot.'pany in ntatin;; they needed 'he electric hunine:,:. in order to extend the natural gan huniner.r.. 1!c first 'i nted t hat. hin co: pany did not feel the pri::nry rate "))" should
- appl y t o t u:i n r.choc3 . Un did nqt feel they should be cadd3ed with the respo%ibility of cuaj n,~, and unf utainin;, a trar.:f orm:>r. 111 later ntated t hat hi:. c o.:p. :iy did not have the pr);;a::y rat:c at the prer. cut Line but they. vert uorhiur. on it. , ,
lir. Jorr,ennen infor;<cd us p.rior to the' nectine, that Ihe cont ract:. ue had lef t for gas and elect ric nervice vould not he signed
-that even:i n;;.
Af ter t he raceting he stated it vould be a few days, probably abrint th.> uidd.le.of,-next ucch, before ce hucu the renults. 3
- 1. hough t ~ t ha t possibly Tuenday afternoon, t.pril 23', 1968, un ucu.1 d cal.1 hir:.
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4.; . Jtr"X:P.3 0 i:C 3 II. Cx50 ELL, M .5.':IDF?.7, C02:S'M. fig PU..'Zit CO:.'PM7 PRESS Cl' '.~iT,I:CE, LOT.3 !.:3'.::f. A~:i LOD 33, BO'i::E FALLC, !!ICli10NI . JUL*/ l'), 1960 Many of you ten vr.hubtedl'y are vcll acquai..ted with Con'stn'.cra P..cr Cc pany and with vtat we arc doinc at ' big Bock Point. Some of y:r *r:y not be. So perh on the bcct vay to begin thic dic-cuccion is.1/' telling you a few besic fac'tc, first, about Consumers Power Co pt.;", t nd, cecond, about our nuclear Generating pl nt pro-i . dect. .- ( Concir:ers Power Company, is an independent, invector-owned electri, and gas utility Company operati0g wholly within the ' State 6f Michig. .. Its service arca covers- about 70 per cent of the Lover - Peninsul2 cf "chigan, enco paccing core than 23,000 square ailes. This service area cy.tenda fro =. the border with Ohio and Indiana r.,rth to the Straits of luckinae, and from Lake liuron cad Lake Eric cn *,he cast to Lake Mtchic2n on the ucct. There are, hou-r ever, within '.he arca I have described, n. nt=ber of other electric CDd Cac corp:nico, notably The Detroit Edincn Cc pany and 'ichigna
.. Consolidat'.d C tc Cc:pany. There are also sc=c cu.icip21 electric op: ration:, nn,1 a few rural electric cooperative accociations.
Concu;urc Powcr Ccrcp my nerecc about O'70,000 electric customers ter.! about 520,000 can custccerc. The population of our r.crviec are:t 11:. about four :'illion. Sota of the larccr citics in - Vhich we OP"r.tle arc Flint., Crr.ud ibpida, Cagint.i, Ltnr.in;, K. .le ar.co, l!:y Cit.y, Pstt.le Cre:h, J.ichton,I b'.c:.cn an.1 Pcatir.c. Up liere 15 the nort!.ern part. of ti: pen:nnul.t we nerve Cadil lac , l'.".ni c t.ce , Traverse.-.-. f-r
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The present Generatinf, capacity' of the Connumers Pove:- )
~l Compnnysyntenis2,2'fl,CCOkilowatic. Much of this capacity is in larce steam-clectric Generating stations en Sacinau Day near Pay City, et Muskenen, .on Lake Erle a few miles north of Taledo, and on the . .
Uc have another large generating , Kalanazoo River near Kala anoo. station under construct' ion on Lake l'ichigan d'uc vest of Grand Rapids. - Oc have about 150,000 kilowatts of hydroelectric capacity, . chiefly in plants on the Mushecon, Manistce'end Au Sable
~
Rivers. . (
- Consumers Power Cc=pany is one of the cc panics banded
. together in Power Reactor Develop =2nt Cc: pan',, ,, owner of the Enrico Ferni Atcaic Pcuer Plant r.ov nearing cc=pletion near Monroe, Michig2n.
It is also a menber cc:pany of Atc=ic Power Develop =ent Associates, a research and development organi::. tion which has had cuch to do with
~
the plr.nning and designing of the Enrico.- Fer. i Plant. . in regard to the r.uclenro clectric generating statica Conruacrs Power Cc pany , at Din Rock Point, ve are going it alene. . q vill be the sole evner of this plant. But in connecticn with tha construction and operatica of the plant at Di3 Rcch Point, a research and development progran vill be carried on--is already.being carried on, in fact--in which the United States Atcric Energy Cc:::ission, General Electric and Consu : err! Power Cerpny all vill play an important port. This
' rese: rch c:M de eclo; cat prcgra vill _ centi:iue for fcur and a half ,
_ ycars art
- r the pln: t scer. into op.:ratien, which is scheduled
. .. to be toward th end of 19'.?. <
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o .. The Dig Roch Point Planti vill employ n nucicar 1cactor } , . of. the direct cycle b ilinc vater type. It will have an initial capacity of 50,000 kilowatts, which ve hope to increcce to 75,000 . kilovatts thrcunh the research and develop tent procr::1 This vill not be the larcent boilin; vater reactor The Dresden Plant 'down in the Chicago plant in the U:11ted States. arca is very cuch larger. It vill, however, be the largest direct _ s Ar.1 it vill cycle boiling vater reactor plant in the United Stated. a_ be the largest electric generating plant of any kind in northern Mich'igar , that is, north of the Bay City-Muskegon line. The Big Rock Plant vill be tied,in, of course, by 5 . , .
' means of transcission lines and substations, with Consumers Power Cc:pany's state-vide electric network. It vill be an element of We expect to need strength in this northern portica of the state.
additional cencratin; capacity up here by the time the Big Rock Plant is ready to supply it. . ... .- I don't think I need to tell you con that this is a and vr. cation purposes. It also
'- nichty attractive region for livin has important industrial advanteces because of the Great L2kes, the Uc expect it to St. Lavrence Secvay, and the new Mackinne Bridce.
- Gr w al.a prosper.
To send electric power to this area from southern Ad.d to c.end ccal up here for a Michigan is relctitely expensive. cony'entional clectric cenerating sta.tica vould cost a little extra, too. . l m .: l,
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Tbc clectric po cr produced nt Dic flock Point vill be }. \. comparatively expensive power--at lcast to becin with. We hope and ) believe that the rer.carch and development progran vill bring about a cub:itantial reduction of kilovatt-hour coct. And if the cost cf ccal gocc up, an it'cecas rather likely to do, the gap betvcen the ccct of pover produced at Big P.ock Point and tha theoretical cost of power produced in a conventional plant at the sc=c site vill be narrcued still further.
.. Since other speakers vill diccuco the research and developnent procra:a, I vill say no = ore about it except that, as har
( already been indicated, the bacic purpose is to get core hilowatts' out of the sn=e plant and the sane capital investnent. This is - another vay of saying that vc hope to reduce the cost of producing clectricity in a nuclear generating plar.t.
. Nou you tay vender why Ccacurers Power Ccapany is oblicatin; itcelf in 'an c=ount app cachin; $23,000,000 to build a nuclear Generatin; plant when, as things now stand, it could prcduce electricity cheaper ib. a conventien21 coal-burning plant.
Ve feel that our Ccapcry, like any large business
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cnterprice, has the reopensibility of locking ahead. Anyene who
. cxpects the world to stand still is going to be disappointed.
As llobert Louis Stevenson caid:
"Uhcrever we are, it ic but a ata;e on the way to r.ca e . : e else, and .hateecr ce do, ha ever uell va do it, it ic
,.s on3y a preparatica to do scmethir. else that chall be different."
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. ',e - "Sonc day 1.he vor1,1 vill need a neu courc'e'of heat for I
P' the prcduction of electric power. The known supplies of coal, oil and ilatural cas, while very large, vill not lact,ind6 finitely. ConcuEcrc Power Company alone usec.cbeut 10,000 tonc of coal every
'2h hours. The United States uses about half a million tons of coal
' ' cVery 2!i hourc,. Just for the prcduction of electricity.
How suppose the people of the United States go on . doubling their use of electricity every ten years, ac they have been s doing. In ten years it vill be a million' tons of coal a day, in 20
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yearc t/vo millica tons, in 30 years four aillion tons, and co on.' Furthermore, coal is al::oct su gly coing to cost tore cc ti;..e coco on, if only because of the greater difficulty of cinin;
~.
as vc cet deeper into the sec=c.
~~ ~
. Strict.ly frc.n the standpoint of good but,. ness,. it scecc fittin ; that Concicerc- Pover Cczpo.ny, one of the larger electrie
\
utility companies of thq United Statec, should do its part in explorin;
'the potentialities of nuclear fic:Lon as a cource of heat'for the productioncfelectricity. ,
Concuners Power Cc pany is loca.ted in an a$ ca where it is faced with relatively high fuel costs in connecti;n vith its operatienc. Thic la co because it is located come distance frca the coal fields.
. Over U years, the cost of coal, and the coct' of transport:.tien of ccal, have cliah. d stendily upward.
To illut.trate, in 191'), the a terdce co::t to th : C c:.ra ~ y fcr a ton of coal de:)i tered va:, ?2.(>2 per ten. 'Ivanty yen: . ]ater, in
. n 193 '.> , i t V : ". :', !i .19 p . : ten. In 19;9, i'. van O', l3 p ar to: . $,pR 9 b / Ji
.n r., no ('s p
3 . . . .- _ f- , , . This increnac in the coct of' fuel becomes'inspcrtant ) *. 103,010 when it is ccacidered that in 1915, the Compnny concu ed only ) , In tonc of coal, and in 1935 it ccncused caly 386,336 tons of coal. 1955, concu ptica vac 3,219,M'9 tonc, and, in 1959, the Cc=pany con-sumed 3,7h0,000 tons of coal. The cost of fuel is a very cubstantial figure in Last year connection 'ith Concracro Power Cc:pany's operhtions. it renounted to clnoot $30,000,C00. . In acceccing this reactor project frca an econcric point of view, we r:;ade sc e calcu3ationc cc to the order of our total ( fuel bill during the next thirty to thirty-fiv,c yearc, which correspondr to the econc=ic life of a new conventional generatinc, unit just bein; introduced en the systen. . Daced on ccncervative annaptions ac to grcuth of cur cycte:a over that pericd, prcbable upvdrd trends in the coct cf ec~al, and its freicht, and "rencen .ble ecti .atco of forccccable efficiency of equip:2nt, we have b.rrived at the conclusion that coal delivered to our plants, accu =in ; no une of atcaic enercy, vould coct crer six billion doll: rc i:. ct=:lative tot::1 over the next thirty-five jear.s. Accordin.;1y, the Cc=pany believen that in order for it to furnir h electric cer'.-ice in the future, at the roct advantactcu: i n ard f.evelop any f .cl prices to its cuctcr. rc, it nuct be interect "A thich Iffern reaccrnie prorp > cts of reducing the Cc::pany'c fue l ccots.
' Uc thi:': that atenic energy for electric power generatica ultirutely offers a gned lii elihec.1 cf buccmir.; cecntnical';-.
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cuap :ti L i ve . Coace.p: r.tly, v1 n v2 ccanidered the inciallatica cf .
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'- generatins plant in the upper part of the lo cr Peninsu' a, opportunity to advance the tecluiolo;y of power Cencratien'hy rec: arch an1 development of the boilins - v.'.tcr reactor.
' lloucve'r, research and developacnt were not our col'c
- considerations > for c are convinced that the plant that ,ec t.roncse to countract in Charlevoix Ccunty, vill ultimately produce electricity
"*for the area at a price renconcbly correncurate with the ccst of .
generating electricity by conventional r.ca.ic, considered for a len;- i . terra point of view. .
,, s.
In chort, vc believe that the new plant vill scrve a t uncrul purpece, and vill advance nuclear ccierge and technolocy at the sa c time,
- Conm=cro Power Cc pany in glad to ccutribute in thic rather inpor' tant way to the advancerent of the brc i progria .lnid out by the At nic Encrcy 'Cor.icnicn for the de'.cloprent of nuch :.--
cncrcy in the United State ,. . m h
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Thank you. . e
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'. UNITUD STATUS OF AfiURICA 3.j).n b ,
DUI'OlU: Tile ATOMIC UHEnGY COM!!ISSIOM . . .
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In the Matter of . , . .
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l -.! ..;.. Connumers Power Ccmpany
. J: . 'Dochet Hon. 50-329A
,' , 'and 50- 330A (Midland Units 1 and 2) . . . , , .
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,' .', Washington, D. C.,,
~!..";.,. '',,. Mcdnesday, Junc ,,
- 6,, 1973
( Deposition of JUDD L. BACON, a uitness of lauful age, taken on behalf of the Interven'ers in the above-
' ' entitled action, pending before the Ato:nic Encrcy Co=tission,
) pursuant to Section 2.730 (c) of the Conniscion's Rules Part 2, before Susan o'f Practico (" Rules") , 10 C.F.R. ~ e Drake, a notary public in and for the District of Colur.bia, ati 10 5 03 a.n. on Madnesday, Junc 6, 1973. ; , 8 y* s .
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APPEARAllCES: .
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On behalf of Con::nmern Power . . Coupan3*: .. - . ,
. . . KEITl! S. WATSO:1, ESO.- '
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"1320 19th Street] N.IY.'. ,
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.. - . ... . Washington, D. C .,. ..-
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.'On: behalf of.'the Department of Justicc:
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FORREST DANNA!!, ESO. ., -
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. . Department. of Ju. stico ' ' ' .s .
Anti-Trust Division
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- -Washington , D. 'C.'. ..,
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- On behalf of the Intervencrc: " ' . ' . . - ' ' 5 .' . ,r . .
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' SPIEGEL & McDIARMID
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Dy: Robert A. Jablon, Esq. '.
,?Y .
. Watergate Offico Building ', '
2600 Virginia Avenue, N. W. . .s . .
. . Washington, D. C. 20037 -
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} Thereupon, . 4 ' *';'l . . . 'J:r ..
-JUDD L. DACON .
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,a witness of lawful age, was' duly suorn'by the notary public, . . .
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. - being examined by counsel, testified as follows: ,
,. .4. ,
( ' DIRECT EXAMINATION BY ."P. , JABLON: - .i" .
. .i - 0- Can you begin by giving us n' narrative on how .
.the file scarch was done? . '
. MR.- WATSON:
I object. That is too broad a
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MR. JADLON :
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You instruct him not to ansucr?
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!!R. UATSON: I object,an to the form of the qucntion.
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BY Mlt. JADLON: .- .
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. . Q .11r. Dacon, we have compiled como of the dincovery
- p. . ,, . . : . #, . .
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- documents for our 'oun purpocco and I shou you any number r .
For c>: ample, in a document entitled, of them just at randon. . - t.. .
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Power Pooling Study Cost Allocation for Contract Municipaln" . .. .
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Can you
. ..there is a printed number'on the bottom, 001977. .. ,- .
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MR. UNfSON : I object. , (
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MR. JABLON: On what grounds? ,
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MR. UATSON: Work product. . .
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- MR. JADLON: .I sec.
~
Can you e:: plain the derivation of ndri.,er 221 .
, 'and there is a blanh 36. .
!!R. NATSON: -
Objection. I ' instruct the uitnccs . not to answer. .It is a work product. ,.'. ( - MR. J ABLON : .Can you cxplain a date on the bottc;.} which says December 8, 19727 .
., MR. UATSO'1: Stuac o'bj oction. . ,-
BY HR. JAULON: .
- Q In there a general repository for Consumera I .
. Power's filca? -
l A There are several reponitories for Consumers Powc r' n filcu . . _Wmwn n .
- a
.. ......~. .. .-
G . s.. .
. . a.. . .. . ... .
. . e, . :. .
A' ' Central divisio:1,northcaut divir. ion.. , northwout
. ; .. division, Jachuon division. ,. . 1 d.f ,.'l ,..;l,,
O.'. And uhat arc'the purposes,'of. .those divisions? They arc the operating di,visio.ns.
~
The company
.- .A , . ,. .
~
- t. . has split its service territory into geographic areas,
.~,. ,... .: . .
about a do::en or so' of the:n, and'each area has its own
; . . . , . : . . w., ,
- t. ;. . . . .
office uith a division manager and. customer service peopic
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and operating pcopic. p.a. 7C., . .. .;. , " " .. ec c . .
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'I Q You have a' Lansing office,'do,you not? -
.A .Yes, we do. .
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.And Mr. Ravmond said that was for logislativo - . . .
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- . 'A' That i's not'a' division office. . . ,
O What would that be called? Wo.have a logislative representative ulio has an
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,s offico in Lansing. ,
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'O And there would be files there? . .
.I presume so, but I do not know.
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. O How, going back to the central files. ,
Do you have separate sub-files? IIow are the files kept? A
'To which files are you th
..'You said central files. , -
V. . .
.roferring? t .
O The contral files at 212 Ucst Jackson. .
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r . You mean'the general filcu?
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. .. _ Q- The general filen. You call them the general -
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. filan? -
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' s' , . ' Q ,'.- Going to 'the, general files.- llow are the files
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kept?. .'.
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' Iou ~ hncan .jhya.(calh.y?
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'. ,0 Well~now,.tho broc.d clu'acification--aro they by
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. 'sub-matter or by date or both or-- '.
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'A' They are. divided by sub-matter.
Ao to any divisions
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by dates, I can't tell you. .
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. O I!ow about by people? .
. . s
,. .. . , . ~ . .
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". .A I, don't know. .
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I-take it there would be a file index so somebody - . could~ find out uhat the sub-matters ucre? A y ,
, I recall that there is an index or at lec.ct there
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. s Q} Well, would there have bcen one and n't o be one now? -
_ I'am merely saying I can't tell you if there is
. A.
.one now. I. did see one at one point. ,
.O And'ic there nomebody in charge of those files?
.A Yes. .
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Sho is in. charge of the ,': files? . . -
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m - 1}is name is Cordon IIarris,..I.beli.e.ve.
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. And hou many peoplc . work tihere? -
. I,am just talking
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a .- Q Would it be more like one or 5 or. 10 . or 507
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~[wouldhaEard gu_e'c'$ tha$ it 15 rIloro like 5
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..'::than 5 0.
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-Now,' in what you call'the arca and region officcc,
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(- ) * - Q . are those files also kept by sub-matter? ...
. . . . . . . . ~. .
- - ~ .
A I do not know.
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. 'O IIou about the.- files in the division of fices?
- A' "I cannot say as to all'of them. .
I have seen the! files in the Jackson division. My recollectiion is they werckept' by sub-matter. . . - i , Q And is there a person in cha'rge of those files?
. JA In'that division there uas a person in charge
. of,the files. ..,'
. s. . .
. O .'Do you know h.i's .name? . .
,, .- A I do not-kncu her name. .
t Q And would there generally be come person in charge 1 .
. 'of each of the division files? .
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A I can ' t s ay . .
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Incidentally, uhat is the diffe.rence betueen Q.
' a division of fico, and an circa and region of fice?.. -
...:. be a smaller office uithin
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. A ' An arca of fice would . . " . . . . * ,. '; .- .s .
. . .' ' ' , _.... .g. } . ,
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..~a division. For example, the northucut .divinion is an area 5- c - . .
~o ffice in the city'of liidlan'd. Region'officos arc a little
. s. . . .
- . . . . ..-. , ,.s.. : ,. . , .
- c. .
different. Tho' company's bulk pouer operations are' ; divided
.' s . , ' , , , .
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- into geographic regions.
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Docs.that complete.your hnsucr?
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'A , '.,Ycs. . . , . . . .u , x liou, I.take it c'ach major company executive vould
- .,'Q .
. . k-have his own files r .is that correct? - I
^ . .
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A In noneral I think thatn is true. . those vould generally be kept in their offices O e -.
.or in their section officos?
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-Do the accretaries'to the major officials generally
~
t ' have separate _filcs? A "I do not knou. . Hr. Aymond is chief cxecutive und chairman of the O .
- Board of Concumors Pouer Company, is that correct? .
A .Ycs, he is chairman of the Doord-and president. g' . Where would 1tr. Aymond's filen be kept? . O % A !!r. Aybond's files arc.in his secretary's officc. . 4 s"
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A. Generally to coordinate the effortu of the file . . . 5', nearchers, to keep trach of the scarch and' to sec that
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it was compinted in'a timely fanhion.'
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.0 Did you spend full time on-this? ..
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, no.
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; "' Appro):imately how much 'of your time did you
,Q I
devote to this? . . . . . '.r- . M-u..
- ? ,,A *It uould vary,.of course, and I can't put a number
, ~ -
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'on it, but. it was a relatively cuall fraction of my i$ime. '
'O Was there a person"who was in operational charge of it as opposed to a coordinating or more removed supervision?
A You could sav- that. - l . .
*~ '~
.Q- Who uould that be? -
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; i MR. WIsTSO;;: !!ad ye'u ccmpleted your previous statomont? . . .
. - .s, ,
7
. THE HI'n1ESS : Ho. I was goi.ng to say that onc
* .6 of the filo cuarchers who took.the lead.is uithin that . . . .
acction that the scarch ucs carried out in. . MR. JADLO:I: Uho was this? . MR. UltTSOll : Obj ection '. The question is not , geriaana. .
. . MR. "J AllLO !: I think it is very germano. If
'Mr. Dacon cannot answer all the questions we might want to cither'corrobor'to or otherwise depose these people. Also B,. ,
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. ' Alno, in your pleadings you have made'montion of the nut:.bar - - *
. of I)coI>ic uho have vorhed on the;cflic cearchen and uc unnt , -
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- them?
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**iMR. WATSO!:. .Let me say for the record,.14r. Dacon
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has answered the quectionc to date,.I,thinh with como .
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completencus, and I, therefore mainta,in thy objec' tion and
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instruct lir. Dacon not to ancuer.' .. ' ; .i ' Y('< *: ' ' , ' ".., . .
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(~- . .O Can you.doccribe in detail,ho'i you vent about
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.your coordinating effortc? .
A .' ':, Generally through nectings of councel and..> repre-ig , centativec of the departments principally concerned. , , V .
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Q .Ucll, uhat hind of problem vould you concider?
~ ~
A . Interpretationc . .; ~of the joint requects', the mechanico of'accompliching the scarch. -
- s .
( . Q .Did you have periodic reports made to you?
. .,A ,
Can you amplify what you mean l>y report a? .
. 0 ,' Ycc, ' For c>:arnple , you j uct stated that--let me . .
~
- strike that. More any uritten reports r.mde to you of any kind?
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. A I can't recall any off hand, but there may have Y . -
been. .
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'r discunnicmn with cotuinal. '.'
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,0 Let me ank you thin. hiero thene meetingu , . .
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! likely to be with people on your own lo'v.o.l' and .nu't Ieric5r ranh
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'or outnido attorncyc or connt41tanta or u'cro. yourdelf 9.
and ,
..: .,p.copic 'doing the nearch, or both? .'. ' /,- ,>' ,f : ,
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. A It included both. . . . .', . : : #,- .
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O' At th'c came. time? N ,.
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~.' A. lso ceparatol[r, I,take it? *
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O Nou, did you have occasion to make uritten - d .
' instructions cither for your own use or for peopic doing
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.' . the scarch? ., ,
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'I .. did not.
A .*. c , O .Did comebody cice? ,
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- Q Who van that? - - .
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N 'A As far as uritten instructions re concerned, I believe there ucrc tuo docunents. One van a letter fron
~
our Washinghen counnel uritten, I believe, before the jeint request van rcccived. The other connisted of an annotated g
~ ~ * '
. version of the joint requent. ,
. ', O . And uho ucro thouc addronced to? Unit a minute.
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Defore I anh'that, Oho did tho annotated version of the
. .- . . -: n. ...- -
* ' ' . ' . .:, joint requent?
' .:. ...: . ' .Y. . - '"
F. .. i '- A. You mean who hopi up the document? -
- - :Q I mean you.Said that the Washington counsel had w . . . . .
. L '. . .. . . . . , . .
.' -2
$ ' written a lett'cr before 'the joint 'rcquesE an,d I belicyc
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, s- .'.-you stated that there wan another annotated version of it.
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I',Uns'this annotated version from the Manhington counsel or
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. did nomchody cluo make it?
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The ' document' unc phynically annotated by onc
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'of the file scarchers. .'. .. * .
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. Oh,.I acc. .So the document from the Machington i .
counsel una physically annotated by? - ., t . . v A
.'No. . . . . . ,
,. f: ; .7 Q- . Okay. - '
. . '.v '
3 .
'A The document from the Washington counac1 is a
/
letter. The other document in the annotated version of the * *. .
' ^'
. joint. requect of four d:cuments. -
~
..Q
. 'And who did this? Who annotated it? -
MR. UtsTSO:!: Do you mean uho was the author of
' ~
the-(?0cuuent of the. annotated /orcion?' ,
, . , MR. JABLON : Yoc . - .
'~
. nY MR. JitnLO:1:.
e , . Q' I- taho it _.the document itacif van the joint requen't,
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in that correct? ..
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who did the annotating? (! ! ...
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'A. . , .'If ' you mean physically who did it ,', it wan , one . . .
.. 0... -
of the filo scarchers. If you are referring to'the courco ,
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. , .:;. i....
- of th'c annotation, tliat 1c not ncccccarily the cacc. 'It ..-
. . . . . ?* . t - : .,
might have been advice of councol. I think there ma'y also have been inctructionc or clarification by. order of.the i'. . . ~.
. s.. .
Board that u'ould ha've been " included in the an, notation. -
.s
~ . ~
Q The Board of Directors of Consumero Pouer? - t ., A 1.'.No, llcaring Board. . ,
.. ( . . c -
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Q Of the !! caring Board, and when you caid counsel, ):
.. s.;.
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. s ,
.',.. - do you mean youro or Unchington counuc1? - -
4 . , . ..: . .
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'A . .Hashington councel.
s s 'O And ucre the cources of these annotationcv'erbal
- - s. : .
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. or written? -
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':'hev. 7 don't
- . could ' have becn eith:.r er bo ch
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^
Nou, you u.cntioned th q had about five peoplc ; uork c: die -nea cch of the contral files? -
. . A No. .
~ Q I am corry. About' had many peopic worhad on the .
. ~ .. .
cearch of the cent);al files? .
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- 8
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17
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-Probal>1y two or three, A s
".. . Q In that ine'luding youracif? ~
~-
ec- A no,
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Q Ucro there any supervisory pcrnonn 21 between
, . . n. ,
- s. . yournelf and those tuo or threc pcople? ,
.. . .~ .
- A no, ..
'., . .~
"Q ~Uhat can you take--did all of these people have * '
; . . tho' name relative rank uithin the company? '
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lI believe co'. i . A ,
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. s.
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.Q For purposes of the search, were they company
. ' . ,J.- .
ciqualn? ' ' A .That.15 a littic difficult to say. , I believe I
, , mentioned that one of the file scarchers took the lead in .
socing that it was carried out. I don't reen11 whether lie wa's or.a of the persons who scarched the general files or not. ..
. O And uho uns this? . , .'
MR. UATSO::: Objection. . BY MP.. JABLO'I : O ccn you-but this peruca uho took the lead may or may' not hr.'c been engaged in tho'scarch of the general files? ) . A correct. -
', . s 0 'Anstuning he did not or she did not, would the
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other pceple;doing ,the cearch have *.
- reported to him'or * *
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.....' directly to you?
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A .I take it you don'.t mean organi::ationally? .. . t ,
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O tio, I mean functionally. . 4 . . p..
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A ,And reported in uhat conce? ..Do you mean if they
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had-a. problem oruhat they did with the documents or what? ,
. l- .- t . .- s. . . ..
'Q,. Either way. Let's break it do.in. Suppoco they
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.- ) 1. had a problem. What hind of 'prol.ilem would they bc likely , * +
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to have? Or lot me atrike that question. What hind of (s .
.. .: ~ . .
..., . . .. . . v-
, problean did they have? '
. ..- ~
T "
.'. .. A - Ac I recall, the biggcct problem was juct phycically
) .,
.trying to completc the nearch t,ithin 'the time allotted.
. s
~
'O IIow about problend., of interpretations? Would they firch go to thic other percon? .'
, ; ,j ,,' .
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A They might. . s a . .
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'Q And thic otitor person would then report to you? .
A On problcnc of interpretation? ,
. Q- Y.oc. .. -
.A flot necescarily. .
s
. .O Uhom would that un-named perr.on report to? .. 'A ,
ile might discucc th'c problem with Unshington 4 councc1. : ~. .. ',',. . . . . y N Q Directly? . .
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( O '. Would he either diccuss it uith tiauhington counsel
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. '. (or with yourself? Una there anybody clue he might report s.
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,. . . ; . 0. .. . Who?
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f..., ". .' A' . , IIc could have discussed it with the General'
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C., ,,, j ,. .O :Is there anybody clac apart from legal'.who might y .. . . . . . s be,said to act in a supervisory position over him?
.: ~.. .
.A . Directly over him? 6- o f
.Q Directly or indirectly. '
.' A Organi::ationally the General Counsel reports to
~
. a senior vice president. -
O Incidentally, would this person have boca a lawyer?
- 1. A 'Would what person have been a lawyer?
a .
; O 'the person we tre talking about.
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i- * ' A The senior vice president? - i
*O The person who may or may not have participated in the contral office filc-scarch? '
A Yes. .
. -0 Ilc is an attorney, llowuculdyoudescrb.bcthe l o
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...thdr two peoplo uho ucro vorhing on this scarch in terms 1
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of type of position? Were they clerkn, were they attorneys, they accountants? .
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,A Uc11, first of all, let me make it clear, and I ,
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think I did at the outcot, I am not sure c::adtly how many
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people participated in the scarch of the general files. ' I think the nearchers of the general files ucro probably , n.. c a . c- ' all attorncyn, but not neccusarily.
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.: ;.' . - O refer y'ou to connumera Power's motion for L.-
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. . an oider modifying procedural schedule. I.believe it
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, ,- , .' in dated December 22, 1972, -
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and particularly to pagcc 3 .
',..through S. Incidentally, are you familiar with .
this document? A . 'I believe I who at 'the time. I would. have to read
.it again. { ,: - .
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Lot,mc--yo.u may road the wholo document, of courac, O .
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of you uich, ~ but lot me call your attention npacifically to page 3 and really page 4 where it ctates two company -
. attorncyn ucre assigned to the acarch on a full-time basic while anothe$ senior attorney and other non-legal perconnel
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also contributed cignificantly in time and effort. Ilave
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. I read that correctly? . . ,: . ,
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A I beiieve so. .
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-Q And'alno on page S uhcre it ntatec that noother
-company attorney van committed to work full-time on,the - ~
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1 aff3 davit,**what filen hdd been nearched an of.the dato.of
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tho docu'aent. The non-legal pornonnp). au ucl1 au the ; ~;
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.. attorncyn would have participated in nearching. the ,'filen
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y,. ..*.. . j .' listed as having been complete:1 at that time, and I cannot ,
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,. . tcil you now which of those~ files sac scarched by which .
~l"individualn except I believe the officers' files to have .
.- r : .l been acarched by attorneys only.
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, ., .O And were the non-legal employeco aM the legal
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. employcon uor):ing on a corapany equal basis in torma of .
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.' A Can you clarify that? - <
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LO What were the positions of the non-legal employecc
. in the comuanv? . . . .
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I tahc it the non-legal employcon you are
' _ referring to are the throo that are raentioned on page 5
( . that acuinted the attorneyn on a full-time banin?
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O .That is correct.
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A , As I recall, they were f2:om two different depart-mon;:u . One van from the rate department and I believe the other two vere fro:n the generation and transminaion area. 7 O And would they have had a college education?
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.A I believe co, although I am not sure of one of
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s... the two from the genbration and transmincion art.a.
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O , But in ariy event,u they}wouldhavebeenofwhat
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) s . you consider profc'cnional. stature, is that correct? ,* -
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. 'A .I am not sure what you mean by professional *
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staturo? .
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O~ Ucll, uhat would Ehcir r,ank bo in the cornpany?
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