ML19344A209

Suppl Response of Util & Dow Chemical Co to 780105 Interrogatories of Intervenors Other than Dow.Certificate of Svc & Exhibits Encl.Related Correspondence

ML19344A209
Person / Time
Site:	Midland
Issue date:	01/05/1978
From:	Deline D, Howell S CONSUMERS ENERGY CO. (FORMERLY CONSUMERS POWER CO.), DOW CHEMICAL CO.
To:	Atomic Safety and Licensing Board Panel
References
NUDOCS 8008060556
Download: ML19344A209 (9)

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NUCLEAR REGULATORY COMMISSION 4 J

Before the Atomic Safet r and Licensing Board

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In the Matter of )

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CONSUMERS POWER COMPANY ) Docket Nos. 50 ~421

) 50-330' i (Midland Plant', Units 1 and 2) ) l

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1 SUPPLEME::TAL RESPONSE OF CONSUMZES POWER COMPANY AND THE DOW CHEMICAL CCMPANY TO INTERROGATCHIES OF I!rn.sv iORS .

OTHER THAN DOW l

Consumers Power Company (" Licensee") and The Dow Chemical Co=pany ("Dov")

submit the following supplementa). answer to that portion of Intervenors' other than Dov ("Intervenors") Interrogatory No.1 related to the status of negotia-4 tions between Licensee and Dov. Intervenors' Interrogatory was directed to

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both Licensee and Dov.

QUESTION

1. TestimonyinthisproceedingthusfarhasindicatedadisputebeNeen

. Consumers and Dov Chemical Company (Dov) relating to the construction of the

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Midland Nuclear' Facility and sale and purchase of steam and electricib/ from said facility. Ali or a portion of the Dov-Consumers' contracts have been

. identified or attached in written testi=ony of Consumers' .-itness.es in this

. proceeding, Messrs. Keeley and Ecvell. With respect to any dispute concerning-such contracts between Consumers and Dov please state the following:

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2 i (a) Describe in detail the nature of the dispute and the j

[ status of any negotiations.to resolve said dispute. If it is your position that no dispute exists, please state the basis therefor in light of the cross-eynmination testimony of Dov vitness Temple, including but not limited to the disclosures made by Mr. Temple of meetings between Consumers and Icv and i their representatives in September, 1976 vherein suggestions of lawsuits were made, as well as corresponder.ce betveen Youngdahl and Temple during 1975 and 1976 which has already been produced by Consu=ers.

• ANSWER In accoritace with the schedule provided with the earlier Supple =ent6 j ,

Interrogatory Response dated December 22, 1977, Licensee and Dov met at Consumers' offices in Jackson, Michigan, on January 5, 1978 Attached to this Supplemental .,

Interrogatory Response as Exhibit "A" is a su= mary report of that meeting. j I

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I Stephe'n H. Howell, Vice President

Projects, Engineering and Construction Consumers Power Company

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D. Dick DeLine l Manufacturing Manager l Michigan Division-Dow Chemicat U.S.A.

Stephen H. Hovell, being duly sworn, deposes and sayc that the foregoing Supplemental Response of Consu=ers Power Company and The Dow Chemical Compa=y

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3 to Interrogatories' of Intervenors Other than Dov is true to the best of his -

c knowledge and belief.

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d Stephen)H. Howell STATE OF MICEIGAN )

) SS COUNTY OF JACKSON )

Subscribed and sworn to before me, a Notary Public, this 5th day of January, 1978.

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Jackson County, Michigan My Comission F.xpires: April 13, 1980

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. D. Dick DeLine, being duly sworn, deposes and says that the foregoing

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Supplemental Response of Consumers Power Co=pany and The Dow Chemical Cc=pany.  ;

to Interrogatories of Intervonors Other than Dov is true to the best of his .

knowledge and belief.

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. Dfcf DeLine~

STATE OF MICHIGAN )

) SS COUNT! 0F JACKSON )

Subscribed and sworn to herore =e, a Notary Public, this 5th day of

. January, 1978. ~

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. .t Sylvia B'. Ball, Notary Public

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[ My Co ission Expires: April 13, 1980

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! CONStR4ERS POWER-J0W REOPE?ED NEGOTIATIOilS

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Date of Meeting: January 5, 1978

Subject:

Minutes of Nuclear Contracts Negotiation Meeting

, at Jackson, Michigan

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~l Present: The Dow Chenical Company: DDDeLine, UdPribila, JRBurroughs Consumers Power Company: SHHowell, LBLindemer, GSKeeley 4

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.Present as Drafting Committee and for occasional consultation:

The Dov Chemical Company: VAGroening, Jr '

Consumers Power Company: VAKirkby Consumers Power proposed the attached agenda which was agreed upon.

Agenda Items i

Discussion of Unresolved Ite=s i

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1. Interim Steam ~

l Consumers proposed a charge of the ec=modity charge plus 10 percent which  !

vas acce-ted by Dov. This resolved the only open item on interim steam and it has been referred to the Drafting Comittee. q

2. r Definition of Commercial Steam Operation l l 1

Consumers gave Dov a counterproposal which was accepted. This item was referred to the Drafting Ccmmittee.

3. Dov River Management Proposal .

Consumers reported that they were still studying this proposal and would -

reply at a future meeting.

k. Alternate Cooling Water' Source

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Dov reported that they are restudying the matter. They vill be contacting Consumers' technical people for additional information and Dow vill present the results of the study at the next negotiating meeting.

-5 Term of Contract Consumers agreed to an extension of term to the licensed life of the plant (nominally 35 years). It was agreed that after the plant was fully depre- -

ciated,' Dov. vould' pay to Consurers its costs for producing steam for Dow plus 10 percent.' This item was referred to the Drafting Committee.

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. 6. Discharge. of Liability <

I Consumers presented Dov'vith 'a proposal for consideration which was accept-1

. able to Dov on the basis that:all' other matters are successfuny resolved.

j = This~-item was referred to the Drafting Committee.

, .h 7.. NSSS. Output Basis for Calculating "B" Factor h .

This matter was discussed.- There has been no change in the positions of-the parties'.

9 8. -Rate of Return i

The parties discussed the appropriate rate of returri on equity. =Although.

!  ;; final agreement was not reached, Dov agreed that it should.not be less than.

the actual rate-of return on equity on,the electrical business and Consumers

' agreed that it should not be in. excess of the authorized rate of return on equity on the electrical business.

9.- Decommissioning

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Consumers presented Dow with work sheets showing the method of co:::cutation

. of Dov's share of decommissioning costs and a method of recovering these costs i 'under several' discount rate . assumptions. ' The matter was discused and Dow I.

j vin study;the work sheets provided. In the meantime, Consu:_ers vill prepare - .

a draft proposal.

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10. Mf"4== Steam Take 12.- Steam Rate i 16. Variable Capacity Charge Credit

! 1 23. . Allocation .

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.These' items all relate to the steam rate.

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!- _ A- discussion of the application 'of variable capacity charge (Item 16) was

• held." l Consumers proposed that -the variable rate concept in the existing.

contract be retained.? This will compensate' for any unused NSSS and unused generating equipment. investment above a rate of 2 million lb/hr of low-

- pressure stesa and 'k00,000 lb/hr of high-pressure ' steam, and 'the m4 nim =

-steam take-(Item 10)~could be reduced to these values. Dov accepted this propos'al- but askedifor calcu233.6 of stesa costs below the minimum of'

. 12 M111on 1b/hr of low-prer A steam and 400,000 lb/hr of high-pressure steam '

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F down to l' mfilion lb/hr 4r les prusure steam and 400,000 lb/hr of high-

= pressure steam.- J Consw v. v ted out that there would be additional unit costsiin this range b,v. m . unused NSSS capacity and adverse effects on

' the ' heat? rate. ' Consutrys aErsed to run sample calculations of the steam rate at 3.65 minion lb/hr low pressure, ? minion 1b/hr low pressure and ILainion-lb/hr low press'ure, all' with 400,000 lb/hr high pressure.' Consumers 4 vill attempt to have- these-figures 'available' for a technical' committee meeting

'next week.1 At.the same. technical meeting, data on anocation (Item 23) vill

,also be. discussed.

1 - u.. Combinations:of Iow- and;High-Pressure Steam 4

Consumers is still:verking on this item.

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'13. BillingJ The method of billing was ' discussed and agreed upon. This matter was

-referred to the Drafting Committee. It was understood that there vould be an appropriate' allowance for working capital consistent with the methods of charging electric customers.

14. . Capacity Charge Deferral The matter of' deferral of both electric and steam ' capacity charges v'as discussed. There were no changes in either party's positions.

15 Process Steam Radioactivity Monitoring Consumers presented Dov vith a proposal. The matter was discussed and both parties agreed they wanted to do further independent re. search on the matter.

17 Notice Periods s

The parties agreed that the notice periods for increases in Dov's reserved ~

steam capacity would be two years and that the notice period for decreases of Dov's steam capacity would be one year.

{ 18. Dov's Right to Stea= Above h Million Lb/Er

20. Stretch 5

The parties agread to the re oval of Dov's right to steam above the designed capacity of. 4.05 Milion lb/hr except that Dov vould have first call on stretch steam over that which could be utilized in the presently planned electrical generating equipment.

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PROPOSED AGENDA CONSUMERS POWER-DOW MEETIUG S

January 5, 1978 Housekeeping Items

• Discussion of Unresolved Items

1. Interim Steam -

2. Definition of Commercial Steam Operation 3 Dow River Management Proposal 4.. Alternate Cooling Water Source 5 Term of Contract

6. Discharge of Liability

, T. NSSS. Output Basis for Calculating "B" Factor i

8. Rate of Return 1 i

9. ' Dece-4 ssioning - i 1

-g 10. . Min 4- = Steam Take 11.- Ccmbinations of Low- and High *ressure c Steam - -

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Steam Rate. k

, 13 Billing-

14. 'Capaci~ty Charge Deferral -

15 Process Steam Radioactivity Monitoring

'16. . Variable Capacity Charge Credit -

17 Notice Periods' -

18. Dov's..Right to Steam Above 4 Million #/Hr l

, 19 Penalties for Taking Over or Under Reserved Steam Quantity

20. Stretch - -

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21. Termination 1

22. Ticcoverable Cost

-:23 Allocation '

1 24e. Electric Power Sale

'E 25.' Steam From-Unit No 2

26. Final'Date l

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-UNITED STATES OF AMERICA

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JAll 3- ~-a NUCLEAR REGULATORY COMMISSION 3:..g 71. '-iT

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-Before the Atomic Safety and Licensing Board g c-In the Matter of CONSUMERS. POWER COMPANY Docket Nos. 50-329 ,

50-330 1 (Midland Plant, Units -1 and 2) 1 '

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CERTIFICATE OF SERVICE i

i I hereby certify that copies' of the attached " Supplemental l g

Response of Consumers Power Company and The Dow Chemical Company to Interrogatories' of Intervenors' 0ther than Dow" dated January 5, _ d 1978,~ were served upo.5 the individuals whose names appear on .the attached Service List by deposit in the United States mail, postage prepaid and properly addressed, on the 6th day of January,1978.

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C~onnie K. Miller /

3 The Dow Chemical Company Legal Department P.O.~ Box 271 Midland, MI 48640 January 6, 1978 '

Attachment:

Service List

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SERVICE LIST c Frederic J. Coufal, Esq. , Chairman Richard K. 'Hoefling, Esq. -

Atomic Safety and Licensing Board Counsel - to NRC Staff -

U.S. Nuclear Regulatory Commission Nuclear R.egulatory Commission Washington, D.C..'20555 Uashington, D.C. 20555- -

Dr. J..Venn Leeds, Jr. Caryl A. Bartelman, Esq.

I Atomic Safety and Licensing Board Michael I. Miller, Esq.- -

'10807 Atwell Isham, Lincoln & Beale ,'

Houston, Texas -77096- One First National Plaza-Chicago, IL 60603- 4 Dr. Emmeth A. Luebke Atomic Safety and Licensing Board Atomic Safety and Licensing Board U.S. Nuclear Regulatory Commission Panel Washington, D.C. 20555 -

U.S. Nuclear Regulatory Commission Washington, D.C. 20555

, Myron M. Cherry, Esq. -

One IBM Plaza Ato'mic Safety and Licensing Appeal Chicago, IL 60611 Panel U.S. Nuclear Regulatory Commission Judd L. Bacon, Esq. Washington, D.C. 20556 -

Consumers- Power Company 212 West Michigan Avenue I . Docketing and Service Section Jackson, MI 49201 Office 'of the Secretary U.S. Nuclear Regulatory Commission' Ms. Mary Sinclair Washington, D.C. 20555 l 5711 Summerset Street

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Midland, MI 48640 . -

Harold F. Reis,.Esq. "

i Robert Lowenstein, Esq.

Lowenstein, Newman,-Reis & a" Axelrad 1025 Connecticut Avenue Washington, D.C. 20036 -

' Mr. Steve' Gadler 2120 Carter Avenue 1

St. Paul, Minnesota 1 55108 .

H Norton Hatlie, Esq.. ~

. Attorney at Law  ;

P.O.~ Box 103  !

Navarre, Minnesota 55392 'I

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