ML19331B175

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Interrogatories Directed to Dow Chemical.Requests Status & Detail of Dispute W/Cpc Re Dow Allegation of CPC Breach of Contract Concerning Purchase of Steam & Electricity from Facility
ML19331B175
Person / Time
Site: Midland
Issue date: 01/03/1977
From: Cherry M
CHERRY, M.M./CHERRY, FLYNN & KANTER
To:
DOW CHEMICAL CO.
Shared Package
ML19331B173 List:
References
ISSUANCES-CP, NUDOCS 8007280723
Download: ML19331B175 (14)


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' y; j JAN 5 1977

  • C JITED STATES OF AMERICA og;f.N?q,

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~:LZAR REGULATORY COMMISSION gfs i

In the Matter e? _.e.pplication of )

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CONSUMERS PCEZ' :Y ) DOCKET NOS. 50-329

) 50-330 (Midland Picn 1 and 2) )

INTERROGATORL . INTERVENORS EXCEPT DOW CllEMICAL COMPANY TO DOW CHEMICAL COMPANf Pur. _ 10 C.F.R. S2.740b, the following inter-rogatories ara .;ed to be answered separately and fully in writing, un .i or affirmation, by an officer of Dow Chemical : cnving personal knowledge of the answers.

These answers - .

served no later than 14 days after service of these intr _. _as.

The. -tories are intended by Intervenors to be continuing . _ . Dou Chemical Company ("Dow") is re-quired to upct _ answers from time to time in the event it obtains knowir ._a renders a prior answer to these inter-rogatories in: or inaccurate.

I DEFINITIONS

1. "Dow" shall include Dow Chemical Company, its officers, employees, and representatives, and shall also include . cc companies, associations or partnerships in which Dow -

Ccapany ovns or controls at least a 107.

beneficial in ; .

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2.  :. t a nord " person" shall mean any natural person, trust, par:c..;_ no, or corporation.
3. ards "you" and "yours" shall mean and refer to Don aall include its predecessors (i.e., companies it has acqu _ .

any manner or with which it has merged),

its subsici .

and their predecessors and successors), its divisions (c .h predecessors and successors), its affiliates (and their ; ,asors and successors), and any and all of their respective .

and former officers, directors, agents, employees c.. -

o.d all other persons acting on their behalf.

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aications" si.all mean and include all docu-ments as har

.2r defined and all written, oral, telephonic or other r discussions, conversations, negotiations, agreements.

- andings, meetings, letters, notes, telegrams, advertise:r.r 1:erviews.

5.

.its" shall mean and include all written, graphic, c: -

materials of any nature whatsoever (includ-ing draz;s -

copies and whether formal or informal),

including '.:.a ._

.imited to, letters, correspondence, memoranda, notes, tele -

.iaries, desk calendars, circulars, charts, papers, tape er sound recordings, ledgers, schedules, work sheecc c:s, films, transcripts, agreements, licenses, memoranda : : .

.c.e or personal conversations, microfilm, books, news - es ,

newspapers, magazines, advertisements, periodicale,

cs, pamphlets, statements, notices, reports, records, ar;_.'

'l incorporation, articles of association, m .~

by-laws, rulen ragulations, directives, teletype messages, minutes of u:_n3s, interoffice communications, accounting work sheecs. - 27.cial statements, stock transfer books, jour-nals, booka : ' .c2 cunt, bills,' vouchers, bank checks, hotel

, charges, prcp- 12, prospectuses, offers, orders, receipts, working pc;cr ~;pointment books, time sheets,. logs, photo-graphs, ob; n {rawings, studies, forecasts, proj ec ts ,

stenogrcpha; abooks, punch cards, and computer printout sheets.

5. :2:m " relate to" shcIl mean consist of, refer to, reflee.

.a any way logically or factually connected with the u.a._ .;scussed.

II IXPEDITION REQUIREMENT

.rs realize that Dow may have to. search throughouc ze international organization in order to fully ans- laterrogatories. Intervenors will permit, however, 2: 2ast initially, to limit its search to in-formation c: _

as persently in Midland, Michigan so as to be of some .ce in getting at least partial answers on an expedic :

This permission, however, should not be in-terpreted 1 permitting it to be dilatory or late in filing complete ans Intervenors are only amenable to accepting, within the.1- :2riod, answers to these interrogatories to the exten: r r.  :: ,

limited to information in Midland, Michigan.

Thecsense Of -

3xpedition Requirement" is to get relevant information 2 :ly as possible and not to permit Dow to withhold informaticr cr

.._ 3 rounds that it is, for example, awaiting

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further infor ution from Texas or elsewhere.

III IDENTIFICATIONS

1. mntify" (a) .:m: used with respect to a natural person, re-quires a sect: at of such person's name, present address, employer, N 1:- ision, department, district and regional, territorici - :er organization unit, the capacity in which he is emplo . .d his business and home telephone numbers.

(b) a used with respect to a committee of the board of di:- , division, department, district, office, bureau, regacc cerritorial orVa description of its functions, a descripticn _ae geographic area of the' United States or any state c- _ vision thereof with respect to which its functions c_ rraed, from the period January 1, 1968 to the date of awars to these interrogatories during which it has exi> 2 name and title of each person in charge of

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the operac'- :ch entity and the name and title of all persons repo; ca such person in' charge and of the name and title of all ns to whom he reported.

(c'  : used with respect to a partnership, state the location cf lace of the partnership's businesses, state each generai - zimited partner, the present address of each partner, cr.a ,;.siness and home telephone number.

c. , used with respect to a corporation, state the place and -_- .ncorporation. the location of the corpora-tion's pric.c.. .ffice, each line or type of business engaged
  • (Insert ':5 2 "-ing) : otherforganizational unit, shall require a statemen; c; .2 name of such unit,

.m in by such corne ation, and, if the sharcs'of such corporation are publicly ;ritec, idertt?.fy each person beneficially or legally owning . 57. or u~ ca of each class of such shares.

(e) - c r. csed with respect to a document, shall mean identify the ;- :a or persons by whon the document was written, the person ir . the document was typed or otherwise created, the person cc anas to whom the document or any copy thereof was sent ana , arson or persons now having custody of'the original of : .. cument, or, if such original does not exist, of each exie ;.

may of such document; state the date upon which such coc r.nt was first written, and describe the contents and substance cch document.

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used with respect to a communication, identify the person b; cade and the person or persons by.whom received; st _ -

time and place at which it was made and, if made by teley :he telephone number at which it was received and the exac- . .

an of such telephones; describe the contents and substance H .m1 communication; identify all documents which set icr_ contain, or relate to, the contents or sub-stance, or any uion thereof, of such coamunication.

IV TIME PERIOD Exc;;' .;;a otherutse stated, each interrogatory re-quests inforc_ . c_ for the period beginning December 1,1967 to the date of ;ct._ -c.swers to these interrogatories.

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COMPLETENESS REQUIREMENT In add cion to answering each interrogatory as set forth below, lease also identify (in connection with each

.interrogatary . sner), each fact, document or communication which you hc.o _ alied upon;or which you believe supports your answer to anco ;carrogatory. Also, in connection with your-answer to ae.-'

uerrogatory, identify each person who has any knowledge of an fact which relates to or which you have relied upon in conne:..c. with each said answer. 'Whenever an inter-rogatory is -- -

in the conjunctive, it'shall also be taken in the disf u. . - -a and vice ve sa. .

VI INTERROGATORIES

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nony in this proceeding thus far has indicated

.a dispute ce Mr~ . ers*and Dow Chemical Company (Dow) re-lating to th2 mcruction of the Midland Nuclear Facility and sale and pur;c

" steam and electricity from said facility.

All or a par.._ 1

' the Dow-Consumers contracts have been identifiea cr chad in written testimony of Consumers' witnesses in this proc; Messrs. Keeley and Howell.

With respect to any dispute cc:' _ ntng such contracts between Consumers and'Dow please stata _ :llowing:

(c)

.r ca.in detail the nature of the dispute and 1

the s:1 < ~ any negotiations to resolve said dispute.

If it la  : position that no dispute existr please state As.used chrc.= . .

these interrogatories, Consumers means Consumers Pcuar '

gany, a party herein.

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t the bani. cherefor in light of the crons-examination testi-many of P a witness Temple, including but not limited to the disclosures made by Mr. Temple of meetings between Consumerc and Dow and their representatives in September, 1976 wha ci., suggestions of lawsuits were made, as wel1~as corr as p ., - _we between Youngdahl and Temple during 1975 and 197 .hich has already been produced by Consumers.

(b) -cr'.be in detail your factual and legal position concerr. Said dispute including whether you believe Dow has an F ligation to purchase steam or electricity at any time rc7 11 ass of the date when the Midland Nuclear-t Facil_ty '.rct becomes operational.

(c) ._. Sorth the legal theory or theories in connec-tion w. .id dispute upon uhich Dow would base a defense againe ..<. nit by Consumers in the event Dow announced a pos _ n :nac it would no longer consider itself obli-gat'd b: contracts for the purchase or sale of electricity or sca.o a the Midland Nuclear Facility.

(d) ae best of your ability and whether based upon peri # al knowledge or not state what you believe to be che pcc.c_an of Consumers in connection with the dispute.

Used within c - _

.ncerrogatories the word " dispute" shall have the broacesc - ._ble meaning and shall include differing posi-tions, discyre- .acs, different viewpoints, different obj ec-

- tives and dif:?ece_: perspectives concerning all or any part of the subject =c c ar.

2. Stata the date of commercial operation for the Midland Nuclear Facility which you currently project. If a different dar.e 1.a applicable to each unit then so state.

Explain in dacail the basis for your projection and set forth in detail whatcar you have taken into account in your proj ec-tion a concasta haaring at-the operating stage level, economic conditions .A!H ;culd restrict Consumers' ability to raise funds for constru : - completion and regulatory changes requiring modification <,

a cSa design of the Midland Nuclear Facility.

Where applicabi. c ive dates for each of the events or factors upon which you n2 your overall projection.

3. Wita respect to your existing contract with Consumers concerning th uccasse and sale of steam and electricity, state the dm.: / wnich you believe Consumers is obligated to have the Mic.. - 4.c ':r Facility in commercial ope ~ ration capable of ._

r.ailable to you those amounts of steam and electricity c. 31ated by your existing contract with Con-sumers. IC - -

.o jour position that the existing contract calls for nc : .c .ulcr date, please explain your answer in detail incl..c_ , ur legal theories or interpretation of the contrac: .; specific reference to applica'le contractual provisionc.

4. E: 3 o ce a contingency plan setting forth, whether forrri  :

O. formal and whether oral or written, any alternativa3 :s = .e purchase of steam and electricity from the Midland Nuciac; :cility in the event that

-(c) acc.struction permit is suspended; A

(b) the construction permit is permanently lifted and vacated; (c) You latermine not to purchase steam.or elec-tricity from the Midland Huclear Facility; and/or (d) it is impossible or improbable for Consumers to have a Midland Nuclear Facility in commerical opera-tion by ycur currently proj ected commercial operation date.

If it is your position that you do not have a contingency plan in the event of cre or more of the above occurrences please in detai state why not. :f mu have such contingency plans, set them forth/

5. Have sny of your representatives (including legal ~

representatives) rendered any advice (whether formal or in- -

formal and wha;har cicten or oral) concerning.a lawsuit against Dow by Consumera _c event Dow determines not to purchase steam or eleccrie: - from the Midland Nuclear Facility.

Explain your cn. .:s r in detail and if such advice has been rendered set for_ che advice with particularity including applicable legal _: caries.

6. In tha niginal proceedings concerning the construc-tion license the total cost of the Midland Nuclear Facility was approximatelf S5CJ million. Both Consumers and the Regula-tory Staff tcok rac position that the chief benefit (under a cost-benefit a;11 7:r_s pursuant to the National Environmental Policy Act) was the production of electricity to various users as well:as tha mala of steam and electricity to Dow. The projected cost fc; cae nuclear facility is not at least $1.67 billion and may be higher. Please state in light of the

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additional cost, each benefit which exists today, if any exists, not applicable and/or analyzed in connection with the earlier cost-benefit analys.. in this proceeding and to the extent any such additicnal benefits exist, please quantify them and give your judgment in detail, as to whether such additional benefits justify the i;.craased capital cost.

7. Dow is currently under a consent order with the Michigan air ?cilucion Control Authorities which prevents Dow from operating _cs existing generating facilities past 1980.

In addition the United States Environmental Protection Agency has recently tacen the position that it may not permit Dow to wait as long cs 1930 to remedy air pollution problems in and around Midland, hiche g- In the event that the State and Federal Air Pollution Reyt_ntory Authorities do not permit Dow to operate its presenc gn _ ; _. : facilities after 1980, would you agree that it is no cr.ger necessary from a cost-benefit standpoint, to build the N_f rad Nuclear Facility.as currently designed and at its cu:.r n; location? Whether you agree or disagree, please explcic your answer in detail.

8. Stat, in detail the present status of your current facilities fcr generating electricity or steam in light of each of tha ic1' . sing:

(a's q;1ation, discussion, citation, demands or requests cr from the United States Environmental Protection Jtgency regarding State or Federal air pollu-tion requirements in Midland, Michigan.

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o (b) rey,ulation, discussion, citation, demands or requests by or from the Michip,an Air Pollution Authori.ty regarding State or Federal air pollution requirementa in Midland, Michigan.

Include within your answer to this interrogatory, separately for Federal and State regulatory authorities, whether you presently believe that each or both of them would permit you to operate your present generation facilities past 1980 and if so, under what circumstances, explaining in detail any costs or capital changes in connection with such circumstances.

9. Have you been informed, whether formally or informally, that you probably may not be able to operate your present generating facility after a certain date? If so, state in connecticn with such information:

(a) che c.cne of the regulatory agency which has pro-vided you such i armation and the relevant dates; (b) the schedule or timetable (including relevant costs and a description of :apital changes or improve-ments to your generating facility) which will probably be required from you; and (c) the status of your plans to comply with said requests.

10. Is it possible for you to construct in Midland, Michigan as an alternative to your purchase from Midland Nuclear Facility a fossil fuel generating facilitf? If not, state why not.

If-your-answer is "yes," then also provide the following in-

-formation:

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(a) a description of the type of fossil fuel generating facility which can be constructed, (b) a statement of the total capital cost of such facility, (c) an estimate of the time which it'would take to-construct or make commercially operable.such a fossil fuel generating facility, and (d) whether, if you began to use good faith efforts now, you could construct such a fossil fuel generating facility which would be commercially operable on or before the end of 1980.

As used within these interrogatories, the tenn " fossil fuel facility" means a facility which could take the pla~ce of the Midland Nuclear Facility to generate electricity and/or steam in ar.cordance with you perception of your current needs.

Include within your answer to this interrogatory whether you agree that the total cost of such a fossil fuel generating facility, plus assuming a complete loss of Consumers' current investment in the Midland Nuclear Facility, would be less than 1.67 billion. If you disagree please explain your answer in detail and whether you agree or not set forth the figures upon which you have relied in your answer.

11. Set forth your understanding and definition of the term " energy conse19ation." After you have set forth your 1

understanding and definition cf the term " energy conservation," l I

provide the following information:

(a) What steps or actions you have planned or are contemplating planning to initiate voluntary energy

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conservation thoughout the period 1976-1986.

(c) Set forth what steps you are planning or contem-plating planning concerning the adoption of inverted rate structures which would contemplate consumers of electri-city who use more electricity to pay more therefor rather than less.

(d) With respect to each of the alternatives described in (a), (b), and (c) above and in consideration of your plans or contemplated plans if any, set forth what you believe would be the savings in energy sales (in terms of megawatts electrical) that would result over the period of 1976-1986).

12. Please set forth each cost and benefit which you currently believe to be applicable in connection with the Midland Nuclear Facility. The term " cost-benefit analysis"- in this interrogatory shall mean that process, as you understand it, required to be done pursuant to the National Environmental Policy Act. In connection with your answer, quantify separately each cost and each benefit and state whether you are including within your answer the cost of fuel reprocessing, fuel storage, fuel availability and decommissioning of the Midland Nuclear Facility.

If you do not include any of said items in the cost-benefit analysis, please state why not. Also include within your answer the percentage of the design electrical rating of the Midland Nuclear Facility (e.g., 90% of megawatt electric rating) which you believe should be used in connection with the cost-benefit analysis, explaining your reasons therefor.

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13. Do you agree that there exists in your relationship with Consumers any " change of circumstances" from those which i

existed in 1773? If you do not agree, please explata your answer in detr?.l. If you do agree, list each changed circum-stance in sufficient detail so as to be understood'without reference to any document other than your answer.

14.3 For the period 1976 through 1984, state annually your quantification of the environmental costs to the Midland, Michigan and surrounding community from pollution emmissions from your present facilities which you use to generate elec-tricity or steam. Whether or not you are able to give a quantification in dollars, please describe in detail the sources of environmental costs including in particular the pollutants involved and what harm or damage to anyone or anything in Midland, Michigan and the surrounding area will result frcm present or projected pollution emmissions during the period requested hereinabove.

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Attprhh ror 'all ]ntervenors l except\ w Chemicdl Company MYRON M. CHERRY One IBM Plaza Suite 4501 Chicago, Illinois 60611 (312) 565-1177 l

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