ML19343B670
| ML19343B670 | |
| Person / Time | |
|---|---|
| Site: | Oconee, Mcguire, Comanche Peak, McGuire  |
| Issue date: | 05/24/1974 |
| From: | Farmakides J, Hall G, Tubridy J Atomic Safety and Licensing Board Panel |
| To: | DUKE POWER CO. |
| Shared Package | |
| ML19343B661 | List: |
| References | |
| ISSUANCES-A, NUDOCS 8012300030 | |
| Download: ML19343B670 (21) | |
Text
(ATTACMENT NO. 2)
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UNITED STATES OF AMERTCA ATOMIC ENERGY COMMISSION A*"~,.
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DUKE POWER COMPAW
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Docke t Nos, 50-26 9A, 50-270A,
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50-287A, 50-369A, (Oconee Units 1, 2 & 3
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50-370A McGuire Units 1 6 2)
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ORD: G? JCI!!T l'OTION OF TIE REGl. ATORY ST/.FF, OF 'i,:: AfC'IC :'!GY CU NISSICM * ':0 T'E P'.].qT-MF.:!T OF.1UF ': : O PL/.CC COND1 TIC'S ON CCC E!:
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By Joint Motion dated May 13, 1974 with attachments, the Department of Justice and the Atomic Energy Comission Regulatory Staff requested this Board to direct that all 2) licenses for the Oconee and McGuire nuclear power plants be amended to include as conditions certain commitments made by Applicant, Duke Power Company, in its " Statement of Comitments" attached hereto.
By these proposed license conditions Applicant agrees to enter into various types of transactions and activities with electric power entities in the Piedmont Carolinas.
1/
Attachments consist of letter dated April 26, 1974, from Thomas E. Kauper to Howard K. Shaper; letter dated April 26, 1974, from William M. Grigg to Thomas E. Kauper with " Statement of Conunitments" attached thereto.
2/' " Licenses" refers to both " construction pe.mits and operating licenses.
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-2 The Joint Motion sets out the types of transactions and activities involved and the reasons why both the Depa rtr.:ent of Justice and the Atomic Energy Co= mission Regulatory Staff believe the public interest would be served by conditioning to the Oconee and McGuire licenses at this time.
By response dated May 20, 1974, Applicant stater tha t it has no objection to the Joint Motion, and additionally requests that:
(a) various actions be 1/
taken in the Catawba proceeding; (b) the Board act with respect to the status of the Department of Justice and the Atomic Energy Commission Regulatory Staff in any further proceedings (The Board defers ruling on this request at this time) ; (c) the Board " acknowledge" the withdrawal of the Department of Justice advice letters for the Oconee, McGuire and Catawba units.
In view of the statement and position of the Department of Justice 2/
Applicant's response, however, is captioned and filed only in the Oconee-McGuire consolidated proceeding and is so considered in view of the Joint Motion to which Applicant's response relates.
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3-on this last point made to the Board at the Catawba Pre-hearing Conference on May 13, 1974, this Board considers that said advice letters as to Oconee-McGuire have been further supplecented in accordance with the commitments made in letters set forth in footnote #1, above.
After careful review of dbe Joint Motion and the attachments thereto, all the related pleadings and record to date in this proceeding, the Board finds that the pro-posed conditions contained in the attached Applicant's
" Statement of Commit nents" were made to resolve the differences as between the Department of Justice, the AEC Regulatory Staff, and the Applicant and are a reason-able settlement of said differences within the public interest.
Accordingly, the Board grants said Joint Motion and hereby directs that the commitments attached e
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-4 to this Order be made conditions to all permits and licenses issued or to be issued by the Atomic Energy Co==ission with respec t to the Oconee and McGuire nuclear reactors.
ATOMIC SAFETY AND LICENSING BOARD 4
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.seph' F. Tubridy, Me= bur 7' J
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/G6e rge Rf Hall, Member
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Joh B. Farmakides, Chairman I.ssued at Bethesda, Maryland, this 24th day of May 1974.
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2GtLites ATTACilitENT TO LETTER DATED APRIL 26, 1974 $
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E3 FROM WILLIAM li. GRIGG TO TIIO AS E.
KAUPER
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6-STATEMENT Or COMMITPENTS
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Applicant makes the commitments contained herein, recognizing that bulk power supply arrangements between
. neighboring entities normally tend to serve the public interest.
In addition, where there are ne benefits to all participants, such arrangements also serve the best interests of each of the participants.
Among the b.!nefits of such transactions are increased electric system reliability, a reduction in the cost of electric power, and minimization of the environmental eftects of the production and sale of electricity.
)uay particular bulk power supply transaction may afford greater benefits to one participant than to another.
The benefits realized by a small system may be proportionately greater than those realized by a larger system.
The relative benefits to be derived by the parties from a proposed trans-action, however, should not be controlling upon a decision with respect to the desirability of participating in the transaction.
Accordingly, Applicant will enter into proposed bulk power transactions of the types hereinafter described which, on balance, provide net benefits to Applicant.
There 1
l are net benefits in a transaction if Applicant recovers the cost I
of the transaction (as defined in 11(d) hereof) and them is no a
demonstrable net detriment to Applicant arising from that o
transaction.
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As used herein:
(a)
" Bulk Pcwer" means electric power and any attendcnt energy, supplied or made availcble at transmissicr. or sub-trancmissicn voltage by one electric system to another.
(b)
" Neighboring Entity" means a private or public corporation, a governmental agency or authority, a municinality, a cooperative, or a lawful associa-tion of any of the foregoing owning or operating, or proposing to own or operate, facilitics for the
. generation and transmission of electricity which meets each of the following criteria:
(1) itr existing or proposed f acilities are economically and technically feasible of interconnection with those of the Applicant and (2) with the exception of municipalities, cooperatives, governmental agencies or authorities, I
and associations, it is, or upon co==eneccent of opera-l l
tions will be, a public utility and subject to regula-t tion with respect to rates and service under the laws of North Carolina or South Carolina or under i
l the Federal Power Act; provided, however, that as to associations, each member of such association is l
i either a public utility as discussed in this clause l
l (2) or a municipality, a cooperative or a govern-mental agency or authority.
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(c)
Where the phrase " neighboring entity" is intended to include entities engaging or proposing to engage only in the distribution of electricity, this is indicated by adding the phrase " including distribution systems."
(d)
" Cost" means any appropriate operating and maintenance expenses, together with all other costs, including a reasonable return on Applicant's invest-ment, which are reasonably allocable to a transaction.
However, no value shall be included for loss of revenues due to the loss of any wholesale or retail customer as a result of any transaction hereafter described.
2.
(a)
Applicant will interconnect and coordinate re-serves by means of the sale and exchange of emergency and scheduled maintenance bulk power with any neighboring entity (ies), when there are net benefits to each party, on terms that will provide for all of Applicant's properly assignable costs as may be determined by the Federal Power Commission and con-sistent with such cost assignment will allow the other party the fullest possible benefits of sa:h coordination.
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(b)
Emergency service and/or scheduled maintenance service to be provided by each party will be furnished to the fullest extent availabic from the supplying party and desired by the party in need.
Applicant and cach party will provide to the other emergency service and/or scheduled maintenance service if and when available from its own generation and, in accordance with recognized industry practice, from generation of others to the extent it can do so without impairing service to its customers, including other electric systems to whom it has firm commit-ments.
(c)
Each party to a reserve coordination arre
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ment will establish its own reserve critcria, but in no event shall the minimum installed resc rve on each l
system be less than 15%, calculated as a percentage of estimated peak load responsibility.
Either party, if it h.s, or has firmly planned, installed reserves in excess of the amount called for by its own reserve criterion, will offer any such excess as may in fact be l
available at the time for which it is sought and for such I
period as the selling party shall determine for purchase in accordance with reasonable industry practice by the i
other party to meet such other party's own reserve requirc-i ment.
The parties will provide such amounts o'f spinning re -
serve as may be adequate to avoid the imposition of unreason-able demands on the other party (les) in nceting the
normal contingencies of operating its (their) sys tem (s ).
!!oweve r, in no circumstances shall such spinning roscrve requirem :nt exceed the installed reserve requirement.
(d)
Interconnections will not be limited to low voltages when higher voltages are available from Applicant's installed facilities in the area where interconnection is desired and when the proposed arrangement is found to be technically and economically feasible.
(e)
Interconnection and reserve coordination agreements will not embody provisions which impose limitations upon the use or resale of power and energy sold or exchanged pursuant to the agreement.
Further, such arrangements will not prohibit the participants from entering into other interconnection and coordination arrangements, but may include l
appropriate provisions to assure that (i) Applicant receives adequate notice of such additional inter-connection or coordination, (ii) the parties will jointly consider and agree upon such measures, if any, as are reasonably necessary to protect the relia-bility -of the interconnected systems and to ' prevent undue burdens from being imposed on any system, and O
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(iii)
Applicant will be fully compensated for its costs.
Reasonable industry practice as developed in the area from time to time will satisfy this provision.
3.
Applicant currently has on file, and may hereafter file, with the Federal Power Commission contracts with neighboring entity (ies) providing for the sale and exchange of short-term power and energy, limited term power and energy, economy energy, non-displace-m'ent energy, and emergency capacity and energy.
Applicant will enter into contracts providing for the same or for like transactions with any neighboring entity on terms which enable Applicant to recover the full costs allocable to such transaction.
4.
Applicant currently sells capacity and energy in bulk on a full requirements basis to several entities engaging in the distribution of electric power at re-l tail.
In addition, Applicant supplies electricity directly to ultimate users in a ntmter of municipalities.
Should any such entity (ies) or municipality (ies) desire to become a neighboring entity as defined in Paragraph 1(b) hereof (either alone or through combination with others), Applicant will assist in facilitating the o
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necessary transition through the sale of partial requirements firm power and energy to the extent
- that, except for such transition, Applicant would otherwise be supplying firm power and energy.
The provision of such firn. partial requirements service shall be under such rates, terms and conditions as shall be found by the Federal Pcwer Commission to provide for the recovery of Applicant's costs.
Applicant ~will sell capacity and energy in bulk on a full requirements basis to any municipality currently served by Applicant when such municipality lawfully engages in the distribution of electric power at retail.
5.
(a)
Applicant will facilitiate the exchange of electric power in bulk in wholesale transact 2sns over its trans-
. mission facilities (1) between or among two or more neighboring entities including distribution systems with which it is interconnected or may be interconnected in the future, and (2) between any such e-tity(ies) and any other electric system engaging in bulk power supply between whose facilities Applicant's transmission lines and other transmission lines would form a continuous electric path, provided that permission to utilize such other transmission lines has been obtained.
Such transaction shall be undertaken provided that the r
8-particular transaction reasonably can be accom-modated by Applicant's transmission system from a functional.and technical standpoint and does not constitute the wheeling of power to a retail customer.
Such transmission shall be on terms that fully compensate Applicant for its cost.
Any entity (ies) requesting such transmission arrangements shall give reasonable notice of its (thei4 schedule and require-ments.
(b)
Applicant will include in its planning and construction program sufficient transmission capacity as required for the transactions referred to in sub-paragraph (a) of this paragraph, provided that (1) the neighboring entity (ies) gives Applicant suffi-cient advance notice as may be necessary reasonably to accommodate its (their) requirements from a functional and technical standpoint and (2) that such entity (ies) fully compensates Applicant for its cost.
In carrying out this subparagraph (b), however, Applicant shall not be required to construct or add transmission facilities which (a) will be of no '
demonstrable present or future benefit to Applicant,,
or (b) which could be constructed by the requesting entity (ies) without duplicating any portion of.
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9-Applicant's existing transmission lines, or (c) which would jeopardize Applicant's ability to finance or construct on reasonable terms facilitics needed to meet its own anticipated system requirements.
Where regulatory or environmental approvals are required for the construction or addition of trans-mission facilities, needed for the transactions referred to in subparagraph (a) of this paragraph, it shall be the responsibility of the entity (ies) seeking the transaction to participate in obtaining such approvals, including sharing in the cost thereof.
6.
To increase the possibility of achieving greater reliability and economy of electric generation and transmission facilities, Applicant will discuss load projections and system development plans with any neighboring entity (ies).
7.
When Applicant's plans for future nuclear generating units (for which application will hereaf ter be made to the Atomic Energy Commission) have reached the stage of serious planning, but before firm decisions have been made as to the size and desired completion date of the proposed nuclear units, Applicant will notify all neighboring entities including distribution systems with peak loads smaller than Applicant's 9
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that Applicant p]ans to construct such nuclear units.
!!cither the timing nor the information provided need be such as to jeopardi5e obtaining the required site at the lowest possible cost.
B.
The foregoing commitments shall be implemented in a manner consistent with the provisions of the Federal Power Act and all other lawful local, state and Federal regulation and authority.
Nothing in these commitments is intended to determine in advance the resolution of issues which are properly raised at the Federal Power Commission concerning such commitments, including allocation of costs or the rates to be charged.
Applicant will negotiate (including the execution of a contingent statement of intent) with respect to the foregoing commit-ments with any neighboring entity including dis-tribution systems where applicable engaging in or proposing to engage in bulk power supply trans-actions, but Applicant shall not be required to enter into any final arrangement prior to resolu-i
. tion of any substantial questions as to the law-ful authority of an entity to engage in e
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the transacticas.
In addition, Applicant shall not be obligated to enter into a given bulk power supply transaction if:
(1) to do so would violate, or incapacitate it from performing,. any existing lawful contracts it has with a third party; (2) there is contemporaneously available to it a competing or alternative arrangement which affords it greater benefits which would be mutually exclusive of such arrangement; (3) to do so would adversely affect its system operations or the reliability of power supply to its customers, or (4) if to do so would jeopardize Applicant's ability to finance or construct on reasonable terms facilities needed to meet its own anticipated system requirements.
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1 (ATTACW.ENT NO. 3) 774 c51 1
connection therewith.
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only the citica and Applicent intend to call wit-S Cross-exe.ination re.ay be undertaken by all parties, nuuses.
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4 and cross-examination will extend to all admissible test %,y 5
nertinent to the aforesaid nine points, regardless of the 6
secne of the direct examination.
This was agreed to in the 7
sixth prehoarina conference.
See nages H 3 and 746.
8 The cities will present their case first.
After 9
the pari:ies have cocpletsd exas.ination aad cross-exar.ination 10 of the witness, the Board :r.ay have soce questions.
If so, 11 J the netter of vSether the parties will ba given additional tira af ter the Board's questions will be settled as to each
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situatio.., and the Doard will give such v. ire as it deems
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aceropriate.
15 The Ete.ff's motion of 25 July 1974:
In this Motics the Staff equates this ccse to the tituation in Duke, c.." C.,
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In other
. words, the Staff appears to be of the epinien the t ths C;part-g I
- r. ant of Justice, and Staff, and the Applicant have agreed g3 23 on the proposed conditions as being r.inint: conditicsa which 21 will he arcopte.ble to the Applicant, regardless of the out-of the Applicant's ractions or any further hearings or y
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any further action in this case.
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As the Board understands the natter, the case before g
us is on a motion of Applicant, two motions of Applicant, and
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these motions relate to these u:
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arm endo, t.pply only to the:e condition s and for the purpose 3
of this r.otion.
4 Before ruling, there.! ore, on the motion of the 5
staff, we would like Councel for Applice.at to advise us as 6
to their undarstandine of the r.csture beween thanselves, 7
the Sta f f, and Jus tice.
G MR. CARTER:
Mr. Ch:ir.:ntn, it is our undarstanding 3
that the Ste.ff end Justice and ourselves :.re in agrec.wnt to that the license conditions are sufficient.
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11 CHAIrded: CI. ARK; I undc ro t r.d thht, but the Sta f f 12 '
sce=s to go further and to be under the..rpression that if 13 we wera to deny your motion that you vou'.d sti.11 take tho i
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ocrition that you would be uilling to qzint these conditions, j
15 recardlers of what furth2r conditions the Doard might see fit i
13 tc impose at the end of further proceedings as occur.
i 37 Now that was i:he case in Duke.- We do not undar-s I
10 stand it to be the ccae here but wo are asking you.
gg MR. CARTER: No, Mr. Chairman.
That would not be l
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Me would not be agreeab4e to that.
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21 CHAIPs.N CLAR.t Thank you, Mr. Carter.
12 In other words, as the Board understands the matter.
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and as confimed by Counsel for Applicant, if the Board were j
y to refuse the motions -- that is, the smotions before the g3 Board on behalf of the Applicant, and we vers then to proceed j
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with the car.e and the Applicant is not willing to say that 2
t these conditions would be the rJ.nimun.
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tfould the Staff carc to cervest before we rule, I
4 or would Justice ccre to cenrant?
5 MR. LECKIE:
Your Henor, let me state for the O
record 1.hst that is not our understanding of our agrearant 7
with the Appl.4. cent', and I would rcfer to a pleading, the S
ansver cf the Departmant of Justice e.nd.rc Regmlatory Staff S
to Am:licant's notion for roccasideration.
This was dated 10 June 17th, 1974.
11 Ife stated in that pleading, and I quota s 12
"!fo have been authorized by the Applicant 13 I
to Ltato that it is cgreeable to at.cchrant of these i
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14 l1 conditio:,s to ar.y W.sterford No. 3 license, not only 13 d' the Board grants suarary disposi don but alxc if 13 the Board determine to conduct a hocring with rus-ty pect to any Intervenor's claic for further or addi-g 13 tienel relie f. "
I 10 That has been our undere.=nrU M.
20 CRAIRHAN CLAPJ::
That was what I was undar the i
21 ir;areasien was your understanding.
22 MR. CARTER:
Mr. Chairman, excuse me, but l
Mr. Stevannon reminds me that I hava misspokes myself and what 23 24 Mr. Leckie has just reported is correct.
25 CIIAIRMAll CLARI'.
Then as the record now stands, g'
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lir. Cartor, if the Board were to deny the Applicant's motions, l
2 the Anplicant would still be willing to accept thess condi-3 tions, regardless of what further conditions might be is: posed I
4 as a result of further proceedings?
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MR. CARTER:
That is correct.
6 CHAUF>.N CumK:
ife'll take a one-ninute reosas.
7 (Pause.)
8 CIUJPJRN CIARX:
With the record in its present 9
nesturn, thc: 3oard will crrant the Staff's notion.
10 The next point has to do with the stipulation of 11 fsets.
ITas the sticulation of fcets been oor:pletad?
12 MR. DDEY:
Tour Honor, it is alrost cer::pleted.
13 It will be r.scessary that we have a r.soting, either at lunch 14!
tine or after the hearing today, and hopefully we can get the i
13 signr.tures ty the praties on the stipulation.
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I believe Mr. Vogler rarinded the Board the last l
17 tir:e we hava not got information for every stipule. tion.
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'tr. GelC:,crg's group 1 sit t.he hearing and we do not have the
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21 CTIAIRMAN CI.ARE:
But the nurber of facts will be 22 slightly less than you had origine.11y anticipated.
We under-22 stand that.
y MR. Dmf3Y:
That's ocrrect.
25 CITAIRMAN CLARK:
Suppose you report again tocorrow i
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