ML19347A652
| ML19347A652 | |
| Person / Time | |
|---|---|
| Site: | Midland |
| Issue date: | 03/16/1978 |
| From: | Deline D, Howell S CONSUMERS ENERGY CO. (FORMERLY CONSUMERS POWER CO.), DOW CHEMICAL CO. |
| To: | Atomic Safety and Licensing Board Panel |
| References | |
| NUDOCS 8007310556 | |
| Download: ML19347A652 (8) | |
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NUCLEAR REGULATORY COMMISSION 1
Before the Atomic Safety and Licensing Board..
N/~ / 'M S
In the Matter of CONSUMERS POWER COMPANY Docket Nos. 50-329 i
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50-330 (Midland Plant, Units 1 an'd 2)
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SUPPLEMENTAL-RESPONSE OF CONSUMERS POWER COMPANY AND THE DOW CHEMICAL COMPANY TO INTERROGATORIES OF INTERVENORS OTHER THAN 00W Consumers Power Company (" Licensee") and The Dow Chemical Company
("Dow") submit the following supplemental answer to that portion of Intervenors' Other than Dow ("Intervenors") Interrogatory No.1 related to the status of negotiations between Licensee and Dow.
Intervenors' Interrogatory was directed to both Licensee and Dow.
QUESTION 1.
. Testimony in this pruceeding thus far has indicated a dispute between Consumers and Dow Chemical Company (Dow) relating to the con-
.struction of the Midland Nuclear Facility and sale and purchase of steam and electricity from said' facility. All or a portion of the Dow-Consumers
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contracts have been identified ~ or attached in written testimony of Consumers' witnesses in this proceeding, Messrs. Keeley and Howell.
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With respect to any dispute concerning such contracts between Consumers and Dow please stat'e the following:
c (a) Describe in detail.the nature of the. dispute and the 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-examination testimony of Dow witness Temple, including but not limited to the disclosures made by Mr. Temple of-meetings between Consume'.s and Dow and their representatives in September,1976 wherein suggestions of lawsuits were made, as well
-as correspondence between Youngdahl and Temple during 1975 and'1976-which has already been produced by Consumers.
ANSWER In'accordance with the schedule provided with the urlier Supple-
' mental Interrogatory Response dated February 22, 1978, Licensee and DoW met at Consumers Power's offices in Jackson, Michigan, on March 7, 8, 9, and 10, 1978. Attached to this Supplemental Interrogatory Response as Exhibit "A" is a summary report of those meetings.
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"A Stephen H. Howell, Vice President Projects, Engineering and Construction Consumers Power Company h/
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. Dick Det.ine
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Manufacturing Manager.
Michigan Division Dow Chemical U.S.A.
Stephen H. Howell, being duly sworn, deposes and says that the-foregoing Supplemental Response of Consumers Power Company and The Dow t,
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Chemical Company to Interrogatories of Intervenors Other-than Dow is true to the best of his knowledge and_ belief.
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_ h h C' StephentHj Howell
~-STATE OF MICHIGAN )
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COUNTY OF MIDLAND )
Subscribed and sworn to before 'me, a Notary Public, this 16th day of March,.1978.
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M'J Coimle K. Miller, Notarf Public.
Midland County, Michigan.' :.f,,,,,
My Commission Expires:' -August 16, 1981,
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-D. Dick DeLine, being duly sworn, deposes and says that the foregoing Supplemental Response of Consumers Power Company and.The Dow Chemical Company to Interrogatories of Intervenors Other than Dow is-true to the best of his knowledge and belief.
' bd /b. Y D. Dick DeLine 1
STATE OF MICHIGAN )
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_J COUNTY OF MIDLAND)
Subscribed and sworn to before me, a Notary Public, th'is 16th day
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of March,1978.
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Cornde K. Miller, Notary Pdblic..
1 Mid1and County, Michigan l'r.fio1.t/
My Comission Expires.. ugust 16,.1981;
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e AGENDA d
CONSUMERS POWER--DOW MEETING March T & 8, 1978
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4 1.
Housekeeping Items -
- 2. Dow Resnonse and Negotiations on:
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a.
. Water Contract b.
Steam Capacity Charge Deferral l
- 3.. Negotiations en:
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a.
Recoverable Costs b.
' Termination / Final Date
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Unit No 2 Steam Costs
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Return on Equity ~-
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Exhibit "A"-
. PM C TZr ::~~~ O CCNSUMERS POWER-DOW REOPENED NEGOTIATIONS Dates of Meeting:
March 7, 8, 9, and 10, 1978
Subject:
Minutes of Nuclear Contracts Negotiatic Meeting at Jackson, Michigan Present:
The Dow Chemical Company:
DDDeLine, LWPribila,~JRBurroughs Consumers Power Company:
. SHHowell, LBlindemer, GSKeeley
~ Present as Drafting Committee and for occasional consulta-
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tion:
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. The Dow Chemical Company: PDConner n
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Consumers Power Company:.
JLBacon, WAKirkby 7-h: #
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a3 Present as Technical Committee and for occasional consulta;
.M tion on March 7, 8, 9,-and 10, 1978:
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.N-The Dow Chemical Company:
EWall, RHoffman, MClayton, g
PKline, JLSchick
. 3 Consumers Power Company:
KRKline, PCWebb 4
The attached Agenda was agreed upon.
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Agenda Items-
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1.
Houseke'eping' Items Other than reports to each other about recent activities on the environmental front, there were no housekeeping ' items.
2.
'Dow Response and Negotiations on:
I ater. Provisions W
.a:-
The parties discussed. Consumers' draft of 3-2-78, and Dow
- suggested that the portion relative to condensate return water
'should be separated from that portion relative to Water Resources -
Management. _ After extensive discussion, the parties reached
? general ~ agreement on the provision and Consumers Power prepared
.a ;draf t covering condensate return while Dow prepared. a-draft i
on Water Resources Management.
.b.
-Steam Capacity Charge Deferral
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The proposal in this area of the contract in its present form
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was not acceptable to Dow, and _ the parties spent a considerable q
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period 1of time discussing the philosophy oflth'e-concept and
. working'on various cost-factors. ' The-parties agreed that under some. conditions when Dow was not receiving steam, portionsLof. the' capacity charge could be eliminated.
c.
Fuel CostLComputations-
- The parties-discussed various aspects of the-fuel' cost compu-otations.
The negotiating teams reported that their technical people'had different concepts on :the elements and.it was detemined to bring' the technical ' people for both parties together immediately to work _ on the matters until a basic -
understanding was. reached ~on all elements involved and factual questions were eliminated.- - That session was successfully concluded.-
- 3.
Negotiations on:-
a.
' Recoverable Costs -
The parties discussed recoverable costs and agreed upon a series of examples on the basis of which computations could be ade.and philosophic'al approaches determined.
m Different
< factual situations were examined mutual understanding and agreem nand progress was made toward t.
Dow provided a draft incorporating the parties' understandings.
b.
Termination / Final Date The parties also reached tentative agreement on the portions of the contract relating to tem, termination and extension past thirty-five (35) years, c.
Unit No 2 Steam Costs ~
The. parties discussed the cost of steam from Unit 2.
After extensive negotiations with assistance from the technical committees,_ the parties-reached tentative agreement on methods of. calculation "and other factors involved.
- d.
- MPSC.
The parties agreed the: contract would-not refer to the effect
-of MPSC assumption of or avoidance of jurisdiction, leaving to each.the consequences flowing therefrom.
Rate of Return on Equity e.
The parties: agreed that Dow's rates for steam'would be designed toipermi.t Consumers to realize the same rate of return on common ' equity as th' MPSC authorized in electric rates.
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Next Meeting
- The1 parties. agreed'to' assign unresolved details to-drafting and t' chnical committees and to meet ~ next on March 16,_1978 at Midland.
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. NUCLEAR REGULATORY COMMISSION v#
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'Before the Atcmic Safety and Licensing Board In the Matter of
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CONSUMERS POWER COMPANY
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Docket Nos. 50-329
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50-330 (Midland Plant, Units 1 and 2)
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CERTIFICATE OF SERVICE I hereby certify that copies of the attached " Supplemental Response of Consumers Power Company and The Dow Chemical Company to Interrogatories of Intervenors Other than Dow" dated March 16, 1978, were served upon the individuals whose names appear on the attached Service List by deposit in the United States mail, postage prepaid and properly addressed, on the 16th day of March,1978.
L, W
U, x j Connie K. Miller P.O. Box 271 The Dow Chemical Company Legal Department i
Midland, MI 48640 Dated: March 16,-1978
Attachment:
Service List.
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r SERVICE 2 LIST.
Marshall E. Miller,-Esq.,_ Chairman l Richard K. Hoefling, Esq.
' Atomic. Safety and Licensing; Board Counsel to NRC Staff-
'U.S. Nuclear Regulatoryx Comission Nuclear Regulatory Commission Washington', D.C.-
20555 Washington, D.C.
20555-Dr. _ J. Venn Ledds', Jr.:
Caryl A. Bartelman,J Esq.
Atomic Safety and-Licensing Board-Michael-I. Miller, Esq.
10807.Atwell '
Isham, Lincoln & Beale Houston, Texas. 77096 One First National Plaza t
Dr.:Emmeth A.'Lu'ebke L
Atomic ' Safety and. Licensing Board Atomic Safety'and Licensing Board
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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 Atomic Safety and Licensing._ Appeal' Chicago, IL '60611
. Panel 1
U.S. Nuclear Regulatory Commission
..Judd!L. Bacon, Esq.-
Washington, D.C.
20555 Consumers Power Company 4
212 West Michigan Avenue Docketing and Service Section Jackson,;MI -49201' Office of the Secretary t
U.S. Nuclear Regulatory Comission -
Ms. Mary Sinclair Washington, D.C.
20555 57111Summerset Street J
' Midland, MI. 48640 Har01d F. Reis, Esq.-
Robert Lowenstei_n, Esq._ _
Lowenstein,:Newman,r.Reis &
Axelrad i
1025. Connecticut Avenue
.. Washington, D.C.' E20036:
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Mr.! Steve Gadler-2120 Carter ' Avenue-.
?St. Paul, Minn'esota.55108 4
'Nortonf Hatlie,.Esq..
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~ Attorney.at: Law P.O. Box 103.'
- Navarre, Minnesota-55392-J E
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