ML19337A288

Forwards Typescript Version of Intervenor Utils Board of City of Brownsville,Tx 800829 Proposed Modified License Conditions

ML19337A288
Person / Time
Site:	South Texas
Issue date:	09/03/1980
From:	Poirier M SPIEGEL & MCDIARMID
To:	Blume M, Chanania F NRC OFFICE OF THE EXECUTIVE LEGAL DIRECTOR (OELD)
References
NUDOCS 8009090453
Download: ML19337A288 (10)

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J LAW OFFICES 5 CCORGE S*tEGEL. PC SPIEGEL & MCDIARMID RON u. LANDSw AN I RCeE RT C. ucclARulO SONNTE 3. BLAIR SANCAA J. STRESEL CO M@M WWE. .u. ,e g,7 ,,,ggygg,,

RCSERT A. JA86CN WASHjNGToN, D.C. 20037 THOMAS C. TRAUGER

[ JA' ES N. MCRWCCO JOHN MICMAEL ACRAGNA l' f.LAN J. RCTH TELEPHONE l202) 333 4500 CYNTHIA S. SCGCRAD f

IRANCES E. FRANCIS G ARY J. NEWELL l QANIE L 1. D AVIC SCN L ' ' *8 WARC R. PCIRIER THCMAS N. WCMUGM. JR. MARTA A. M ANILCO f

• ETER K. W ATT JCSEPH L. V AN EATCN 3 OAVID 4. STRAWS STEPMEN C. NICHCLS September 3,1980 oJ coua. set

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Fredric Chanania. Esquire C'f a O '

'gggysg&gga Michael Blume , Esquire s Breth /

Nuclear Regulatory Commission p Washing ton, D.C. 20555 W Re: Proposed License Conditions Houston Lighting & Powe r Co . , et al . , .

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(South Texas Project, Units 1 & 2 ) , j NRC Docket Nos. 50-498A, 50-499A i

I Gentlemen:

Enclosed is a typescript version of Brownsville's  ;

proposed modified License Conditions for South Texas Project Units 1 and 2. We sent you a copy of these revisions in handwr it te n form in terlineated in your Aug us t 2 6, 1980 draft under cover letter dated August 29, 1980.

Very truly yours, M0' Marc R. Poirle r Attorney for the Puolic Utilities Board of the City of Brownsville, Texas Enclosure cc: All Parties John A. Cameron, Jr.

Robert O'Neil MRP:vha 3

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- 4 NRC Staff Proposal August 26, 1980 [

As Modified by Brownsville August 29, 1980 7

LICENSE CONDITIONS FOR SOUTH TEXAS PROJECT UNITS NOS. 1 A:1D 2 I. A. The following definitions apply to paragraph I.B:

(1) " Applicants" means severally and jointly Houston Lighting and Power Company (HLP),

Central Power and Light Company (CPL), City g Public Service Board of San Antonio (CPSB) ,

and the City of Austin Electric Utility Depar tment - (CCA ) and any of their respective successors, assignees, or af filiates engaged in the generation, transmission or the distri-bution of electric power. Where a license )

condition is directed to a specific Applicant, }

that Applicant is identified .

(2) " South Texas Area" means ( a) those counties in which Applicants serve electri, customers at wholesale or retail, and (b) those other areas, if any, surrounded by the areas in (a) above.

(3) " Entity" means an electric utility which is a person, or private or public corporation, a governmental agency or authority, a municipality, a cooperative, or an association of any of the foregoing , owning or operating ,

or proposing in good faith to own or operate f acilities for generation, transmission or

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distribution of elecric power and enery for the j purpose of providing electric utility service. '

(4) " Bulk Power" means the elecric power and atten-dant energy supplied or made available at transmission or subtransmission voltages, but not that supplied or made available solely at  !

distribution voltages.

(5) " Costs" ' means all appropriate operating and maintenance expenses and all ownership costs where applicaole.

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f( 6 )' The ' terms " connection" and " interconnection" 1 are used interchangeably. .p 2

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B. The Applicants defined in Paragraph I. A.(1) 'are '{

subject to the following antitrust conditions: . 7

'(1): CPL shall' afort to .the Public Utilities Board of the ' City - of : Brownsville an o'pportunity to

• participate in the South Texas Poject, Units 1 and 2, on reasonable termt and conditions (including a reasonable ownership interest, taking into account Brownsville's needs and its ability to obtain ownership interest from o other Applicants) and on a basis that will fully compensate CPL for its actual costs.

CPL shall afford Brownsville reasonable

- transmission arrangments to enable it to obtain delivery of power from the South Texas Proj ec t, as well as all reasonable coordination

services (including but not limited to reserve-sharing , back-up power, maintenance power, and emergency power) necessary for Brownsville to have ef fective access to power from the South Texas Project, the specific terms of which shall be agreed upon in advance of issuance of NRC operating license or FERC final order in Docke t No . EL 79-8.

- Applicants shall 'not exercise any rights of

'first-refusal over Brownsville's ownership share in the South Texas Proj ect and shall

, f acilitate , <here necessary, Brownsv111e's obtaining its other rights hereunder.

(2) The Applicants, as long as they are members of f the Texas Interconncted System (TIS) or any /

other organization which considers the ,

planning for or operations of ERCOT-TIS electric utilities, > shall support reasonable requests by Entities 'in the South Texas Area having generation capacity ' for membership in TIS or. such other organizations. The Applicants shall also propose and actively support, . as long as they.are members thereof, the. creation of one' or more additional classi- t fications of TIS ' membership based on non-

-discriminatory criteria to af ford access to  ;

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6 data, studies and recommendations to all ^

Entities in the South Texas Area who desire membership. The Applicants shall share infor-mation with other Entities with respect to, and 3' shall conduct witn other such Entities through any electric utility planning organizations of ,

which the Applicants are members, Joint stu-dies and planning of future generation, transmission and related f acilities; provided ,

however , that this condition shall not obligate the Aplicants to conduct such joint studies or joint planning unless (1) the studies or planning are requested and carried out in good f aith and based on reasonably realistic and reasonably complete data ur projections, (2) the studies or planning are reasonably justified on the basis of sound engineering principles, (3) appropriate protection is accorded proprietary or other confidential business and financial information, and (4) the costs for such studies or planning are allocated on a f air and equicable basis. Upon request by an Entity directly connected to CPL ,

CPL shall include such Entity in central dispatch arrangements undertaken among the subsidiaries of Central and South West Corporation, including related interchange and exchange energy transactions, on an equal and non-discriminatory basis.

(3) Each Applicant shall participate in and f acil-itate the exchange of bulk power by transmi sion over its own transmission : acili-ties between or among :wo or mo re En t it '.e s in the South Texas Area with which the Applicant is connected; and any such Entity (ies) and any Entity (ies) engag ing in bulk power supply out-side the South Texas Area between whose faci-lities the Applicant's transmission lines and other transmission lines would form a con-tinuous electric pa th, provided that ( i) permission to utilize such other transmission lines has been obtained by the proponent of the arrangement, and (ii) the arrangements reasonably can be accomodated fr om a functional j and technical standpoint. Each Ipplicant j shall provide such transmission services on a e

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4-y non-discriminatory basis at a single rate .;'

applicable to'such transmission services each Applicant provides over its on transmission .

f acilities (including both AC and DC 1 f acilities) ',. but in the case of CPL, such .:u single rate shall be for CPL's and West Texas Utility Company's combined transmission f acilitie s.1/ Such transmission shall be on terms that fully compensate the Applicants for their costs including a reasonable return on investment, and that properly credit as an off-set to any wheeling charges costs related to investments made by other Entities in transmission facilities integrated with CPL transmission facilities; provided however that such transmission services and the rates to be charged therefor shall be sub]ect to the j ur i-sidiction .of the appropriate regulatory agency ( ie s) . Applicants shall maintain on file with such appropriate regulatory agency (ies) a tarif f including such rate (s) for such transmission services, which rate (s) shall become ef fective immediately and which  :

shall be collected subject to ref und pending the outcome of any regulacry proceeding on that rate (s). The Applicants shall not refuse to provide such transmission services merely because the rate (s) to be charged therefor are the subject of dispute before such regulatory 4

agency (ies). Unless otherwise required by paragraph (6) below , the specific rates, term s and conditions for such transmission shall be agreed upon and shall be filed as soon as practicable but no later than the date of issuance of the South Texas operating license or the FERC Order in Docke t No . EL 79-8, whichever occurs first. Any Entity (ies) requesting such transmission arrangements shall give reasonable advance notice of its  ;

( their) schedule and requirments. The Applicants shall not be required to enter into any arrangement which .would unreasonably impair system reliability or emergency 4

transmission capacity.

1/ The single rate may make reasonable distinctions cased upon the firmness of the transmission services prov id ed ,

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' (4) The Applicants shall include in their planning -

and construction pograms sufificent trt.nsmission capacity as required for the i transactions referred to in parag raph I. B. ( 3 )

( and I . B. ( 5 ) for CPL), provided any 1 Entity (ies) in the South Texas Area gives the Applicants sufficient advance notice as may be necessary to accomodate its ( their) requirements from a functional and technical standpoint and that such Entity ( ies) fully compensates the j applicants for their costs including a reaso-nable return on investment. The Applicants shall not be required to construct transmission faciliies if construction of such f acilities is infeasibile, or if their costs in connection therewith- would exceed the total of revenues and _ benefits therefore (excluding costs and benefits associated with the loss of customers), or if such would unreasonably impair system reliability or emergency transmission capacity. In connection with the performance of their obligations above, the Applicants shall not be foreclosed from requiring a reasonable contribution in aid of construction or from making arrangements for coordinated construction of future transmission lines such that each of the par-ties to the transaction would own an interest in or a segment of the transmission addition in proportion to its share of the cost of the addition. Any such contribution made in aid of construction or ownership interest shall also be reasonably reflected in the transmission capacity _ available to such Entity and properly credited as an of fset ot any wheeling charges.

If -the Applicants engage in- joint ownership of transmission lines with any other Entity, they shall not refuse to engage in similar transac-tions in comparable circumstances with other Entities, subject to the provisions limiting the Applicants' obligations above.

(5) HLP and CPL shall, upon reasonable advance 1 notice, enter into arrangmeents for the sala of full. and partial requirments bulk power puc- -

suant to a filed tarif f to requesting Entities in the STIS service area or reasonably ad]a-cent thereto (but excluding Entities having L

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non-aggregated . generation capacity of ' 200 MW) ,

under reasonable terms and conditions which 1; shall .provideJ for recovery of - Company costs, ,

including 'a reasonable return on investment.

Such tariff shall not require HLP or CPL to enter .into any arrangement for such sale or sales if it does not have available sufficient bulk power or adequate transmission to provide the requested service or if the sale would impair its ability to render adequate and reliable . service to its own customers or' its ability to discharge prior firm power commitments. Any curtailment of HLP's or CPL's full or partial requirements sales shall be on a reasonable and non-discriminatory j (where possible) basis with all other services provided to customers.

(6) HLP and CPL shall use their best ef forts to obtain approval by the Federal Energy Regulatory Commission ("FERC") of CPL's Amended Interconnections Application in Docket '

No. EL 79-8 dated June 27, 1980, as modified <

- to be consistent - with these conditions and

.will present expert engineering witnesses, ,

s ubj ec t to cross-examination, and shall justify the DC interconnections as alternatives to AC interconnections. HLP and CPL shall also use their best ef forts to obtain any necessay approval of the proposed DC Interconnec tions before the Texas Public Utility Commission and any other forum where actions must be taken.

CPL and HLP -shall use their best efforts to construct the proposed DC Interconnections in accordance with any final order of the FERC or other regulatory authority, and s'v.ll have the  ;

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.IX: In terconnections in operation ' iv e (5)

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years after the last regula tory approval  ;

necessary -to begin construction has been obtained, subj ec t to reasonable ex tensions of  ;

time for - good cause shown.

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(7) ' CPL and SLP shall, excluding any ownership I arrangements, make fifteen (15) percent of the n' DC Interconnections, which are the subject of FERC Docket No . EL 79-8, available for firm transmission service to Entities upon reason- 1; '

able . terms and conditions agreed upon in *

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advance of issuance of NRC operating license or FERC final . order in Docket No. EL 79-8, pro- '

vided that the fif teen percent reservation chall be subject to modification after the first ter. (10 ) years of cperation of ~the DC .

interconnections, should such amount become

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unreasonable in light of underutilization by other Entities.

(8) In connection with the performance of thier obligations above and subject to the provisions hereinaf ter set forth, the Applicants shall not di.sconnect from or ref use to connect their then-existing or proposed facilities with the f acilities of any Entity used or proposed to be used for the transmission of electric f energy in interstate commerce by reason of the interstate character of such facilities, and the Applicants will not prevent any Entity with which they maintain connections from -

establishng , maintaining or modifying a con-nection with f acilities used or proposed to be tsed for the transmission of electric energy in interstate commerce by reasons of the interstate character of such f acilities, and the Applicants will not prevent any Entity with which they maintain connections from establishng, maintaining or modifying a con-nection with facilities used or proposed to be used for the transmission of electric energy in interstate commerce by reasons of the

• interstate character of such f acilites, pro-vided that, anything in these license con-  ;

ditions to the contrary notwithstanding , any l Entity seeking to establish, maintain or  ?

modify any connection which could af fect the -

nonj urisdictional status of the Applicants i under the Federal Power Act shall give Applicants six-months written notice and shall

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cooperate by filing with FERC on behalf of Applicants an application to obtain an order 6

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}w from the FERC, applicable to the Applicants under Sections 210, 211 and 212 of such Act, _ ,

requiring ' the establishment, maintenance or 1, -

modification of such connection. The burden ;nc and expense of , prosecuting the application T

.shall be borne by Applicants.1/ In the event -

such application is denied by a valid . order of the FERC, Applicants may seek an order from the NRC that any proposed refusal by the Applicants to establish, maintain or modify such connection with such Entity ould not create or maintain a situation inconsistent

. with the ~ antitrust laws or the policies thereunder in accordance with the standards o set forth in Section 105 of the Atomic Energy 'i Act of 1954, as amended , and the rules and regulations thereunder, provided that all f ac-tual determinations by the FERC on any cost or system reliaeility reason (s) for any such refusal shall not be sub3ect to redeter- j mination by the NRC. The burden of proof will be on the Applicants in such NRC ~

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(9) Applicants agree to use their best efforts to amend . any agreements to ensure that such 4

agreements are not inconsistent with paragraph (8) above.

(10) The Applicants will, in accordance with appli-cable law, . af ford reasonable ownership par-ticipation to othr Entities in future nuclear generating facilities which they may construct, own , or operate on conditions similar to the foregoing .

L 1/ This. provision.shall not obligate HLP, CPS 3, and '

COA or any other licensee of the South Texas Proj ect to pay th.2 ; expenses of Central and South West Corporation or any of its subsidiaries with respect to FERC Docke t No . EL 79-S.

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(11) Applicants agree that the reliability o'f powe" #

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. delivered into TIS-ERCOT over DC asynchronous connections. shall not be treated . differently by the Applicants, for purposes of spinning and 4l installed reserved calculations and requirements, than would be the ' case if such T power orig inated within TIS-ERCOT. Outages on *f DC asynchronous connections shall be treated by .the Applicants in the rame way as losses of generation within TIS-ERCOT. Applicants agree to support the adoption cf principles involving DC asynchronou.3 connections con-tained. in this paragraph within any TIS or ERCOT organization.

(12) The ' foregoing conditions shall be implemented (1) in a manner consistent with applicable Federal, state and local statutes and reg ula-tions, and (2) subject to any regulatory agency having jurisdiction. Nothing herein -

shall preclude the Applicants from seeking an exemption or other relief to which they may be entitled under applicable law or shall be construed as a waiver of their right to con-test the applicability of the license con-ditions with respect to any f actual situa tion.

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