ML19347D603

Supplemental Status Rept of Mar 1981.Settlement Completed W/Central & Southwest Corp & Subsidiaries.Reserves Position That No Administrative or Judicial Proceeding Will Prejudice Brownsville Rights in Future.W/Certificate of Svc

ML19347D603
Person / Time
Site:	South Texas, Comanche Peak
Issue date:	03/18/1981
From:	Poirier M, Spiegel G BROWNSVILLE, TX, SPIEGEL & MCDIARMID
To:
References
ISSUANCES-A, NUDOCS 8103260817
Download: ML19347D603 (9)

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UNITED STATES OF AMERICA

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NUCLEAR REGULATORY COMMISSION Ctesette ' M -

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. & Before the Atomic Safety and Licensing Board D # dl W ,

~l n6ustonf' Lighting & Docket Mos. 50-498A, Power Company, )

50'-499A et al. (South Texas Project, )

DiiiU 1 and 2) )

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Texas Utilities Generating Company, ) Docket Nos. 50-445A, al. (Cor_anche Peak Steam ) 50-446A a.

@ H y' tric Station, Units 1 and 2)

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j tifPLEMENTAL BROWNSVILLE STATUS REPORT OF MARCH 1981

,, n the filing by the Public Utilities Board of the City of ro*/nsville, Texas, of its November 12, 1980 Comments, Browns- -

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u'. .e has engaged in settlement discussions with representatives of Central and South West Corporation and its subsidiaries ("CSW"),

including Central Power Light Company (" CPL") and West Texas Utilities ("WTU"), which have culminated in a settlement of their

' dif ferences involved in the above-captioned proceedings. The settlement letter agreement is dated January 22, 1981, and final execution of_all documents was completed February 23, 1981.

The settlement includes, inter alia, Brownsville options to participate in CSW generating plants in addition a n.. to the South Texas Project, a Transmission Services AgreemenE,' interconnection arrangements, and Brownsville's agreement to take certain actions in pending litigation, including the Comanche Peak and Seuth Texas Project proceedings. More specifically, Brownsville has agreed that it will not, in these proceedings, see anh'reliefagainst 8103 26 o (l 7 .

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CSW or any CSU Company other than as provided in the proposed settlement license conditions, and that, in addition, Browns-ville's opposition to the proposed settlement license conditions shall be rectricted to contesting (a) matters,.related to proposed wheeling rates, terms and conditions, and (b) matters related to the proposed asserted rights of any utility not to remain inter-connected with, or to disconnect from, other utilities. In accordance with this specific undertaking, Brownsville continues to oppose NRC approval of the proposed settlement license condi-

. tions on the basis set forth in Brownsville's Comments of

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November 12, 1980,- with the exceptions noted on Exhibit A, attached hereto.

With respect to the matter of interconnections between ERCCT and SWPP,'Brownsville has agreed to withdraw its opposition to the Offer of Settlement.in FERC Docket No. EL79-8 proposing direct current interconnection, and has reserved the right (subject to approval by CSW) to support alternating current interconnections in the event the FERC does not approve the Of fer of Settlement.

Brownsville has also agreed to support a determination by the SEC that the CSW system f acilities, supplemented by the direct . current interconnection, are capable of being economically operated as a single integrated and coordinated system, that CSW's proposals involving these interconnections represent a reasonable prospect of achieving such economical operation, and that no contingencies are likely to affect the carrying out of CSW's proposals involving these interconnections.

• /. " Comments of the Puolic Utilities Board of the City of Brownsville, Texas opposing Proposed Settlement License Conditions."

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3-CSW has reviewed this Status Reporr and agrees with the characterization of the settlement agreement contained herein and in Exhibit A, but not with the further requests for relief set t

for'th in Exhibit A.

Brownsville desires to cooperate in expediting the conclusion of these consolidated proceedings. It would welcome settlement discussions with any or all of the Applicants in these proceedings.

It continues to stand on the procedural recommendations set forth in its Comments of November 12, 1980 (pp. 6-7).

Brownsville reserves its position that no administrative or judicial action in the instant NRC proceeding, or any under-takings thereunder, will~ create a cause of action or provide a defense lor otherwise prejudice any rights of Brownsville in the event Brownsville prosecutes an antitrust or other suit against, or otherwise pursues anticompetitive or other allegations as against, any party to the instant NRC prcceeding, except ,

otherwise agreed with any such party.

i Respectfully submitted,

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l , Geprge Spiegel By .c Marc R. Poirier Law Offices of:-

Spiegel & McDiarmid 2600 Virginia Avenue, N.W.

Washington, D.C. -20037 (202) 333-4500 March 18, 1981 M**

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tN-EXHIBIT A Brownsville continues to oppose NRC approval of the proposed settlement license conditions on the basis set forth in Browns-

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ville's Comments of November 12, 1980,- with the following l

exceptions:

Part II. (pp. 2-8). Brownsville withdraws' statement in

("iii") at lines 3-6' on pag'e 8 as rendered moot in this proceed-ing by the Brownsville-CSW settlement. The' general language of this Introduction should be read in the context of the statements herein below.

Part III B. The Brownsville-CSW settlement renders moot in this proceeding everything after the 1st sentence (p. 17) through the 5th line of page 19. Brownsville has an agreed upon set of rates,. terms and conditions for wheeling power and energy over the CPL and WTU transmission systers.

Part III C. (p. 25). The Brownsville-CSW settlement provides generally, but adequately, for the terms and conditions ,

of Brownsville's participation in the South Texas Project vis-a-vis CP&L. To the extent that Brownsville requires, in order to make' participation viable, the other applicants' adequate assurances that - they will not seek unreasonable rates , terms and conditions, including those related ?.o transmission and back-up service, the license should be withheld'until such assurances are forthcoming.

-"/. " Comments of the Puolic Urilities Board of the City of Brownsville, Texas, Opposing Proposed Settlement License p of Conditions." A 6 ~

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Exhibit A 4 -

Page 2 Part III D. (p. 26). Pursuant to the Brownsville-CSW settlement, ~ Brownsville no longer seeks to require the applicants to provide in ,this proceeding the requested assurances that current TIS and STIS policies and operations will not be modified in the future to Brownsville's substantial disadvantage.

Part III E. (pp. 27-28). The Brownsville-CSW settlemen't I

renders moot in this _ proceeding the position stated as to requiring other applicants to offer bulk power on a non-discrimi-natory basis.

I Part III F. (pp. 28-30). The Brownsville-CSW settlement i

renders this' as noot in this proceeding.

Part-IV A. (pp. 31-42) . The evidence appears clear that i nterconnec-

.the system of agreements within ERCOT that prevent tion with utilities. engaged in interstate commerce has not been 4

.' desired"by CSW but_has been imposed t.4ereupon by Texas Utilities Company;("TU") and HLP. Thus, the proposed' license conditions l' should' require the applicants-to eliminate, and not seek. in the L

l future to impose,<such centractual provisions.

Nart IV B.--(pp. 42-43).- This is rendered moot by the

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Brownsville-CSW settlement.

Part V. (pp. 44-77). This discussionLof antitrust laws l

and policies governing the standards - of' Section 105(c) of-the 1

! Atomic Energy Act is applicable subject to the foregoing modifi-r-

i F cations of Brownsville's position.

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- tm UNITED STATES OF~ AMERICA D.-

fAAR 2 01981 > r- ,

BEFORE THg Cfhe cf the Set,bry NUCLEAR REGULATORY COMMISSION # [.{. h " ,

BEFORE THE ATOMIC SAFETY LICENSING SOARD g g $U In the Matter of )

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HOUSTON LIGHTING & POWER CJMPANY, ) Docket Nos. 50-498A et al. ) and 50-499A

)

(South Texas Project, Unit Nos. )

1 and 2) )

)

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In the Matter of )

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TEXAS UTILITIES GENERATING COMPANY, ) Docket Nos. 50-445A

) and 50-446A

, _e t _al .

(Comanche Peak Steam Electric )

Station, Unit Nos. 1 and 2) )

)

CERTIFICATE OF SERVICE I hereby certify that I have caused' copies of the foregoing SUPPLEMENTAL 3ROWNSVILLE STATUS REPORT OF MARCH -

1981 to be served on the following by deposit in the United States mail, first class, postage paid, this 13th day of March, 1981...

Marshall I. Miller, Chairman Sheldon J. Wolfe, Esquire Atomic Safety & Licensing Board Atomic Safety & Licensing Board Panel Panel Nuclear Regulatory Commission- Nuclear Regulatory Commission Washington, D. C. 20555. Washington, D. C. 20555 Michael L. Glaser, Esquire Joseph Rutberg, Esquire 1150 17th Street, N. W. Antitrust Counsel Washington, D. C.. 20036 Nuclear Regulatory Commission Washington, D. C. 20555 Fredric D. Chanania, Esq. J Michael 3. Blume, Esq. R. Gordon Gooch, Esquire i

. Ann Hodgdon, Esq. John P.-Mathis, Esquire )

Nuclear Regulatory Commission Baker &.Botts

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Washington, D. C. 20555' 1701 Pennsylvania Avenue, N. W.

Washington, D. C. 20006 1

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Jerome Sa'ltrman, Chief Antitrust & Indemnity Group Robert Lowenstein, Esquire Nuclear Regulatory Commission J. A. Bouknight, Jr., Esquire Washington, D. C. 20555 William J. Franklin, Esquire Lowenstein, Newman, Reis, Chase R. Stephens, Chief Axel ~ rad & Toll Docketing & Service Section 1025 Connecticut Avenue, N. W.

Office of the Secretary Washington, D. C. 20036 Nuclear Regulatory Commission 20555- Frederick H. Ritts , Esquire Washington, D. C.

Law Of fices of Northcutt-Ely Watergate 600 Building Sarah F. Holzsweig, Esquire Washington, D. C. 20037 Isham, Lincoln & Beale

' 1120 Connecticut Avenue, N.W. Wheatley & Wollesen Suite 325 1112 Watergate Of fice Building Washington, D.C. 20036 2600 Virginia Avenue, N. W.

' washington, D. C. 20037 Robert Fabrikant, Esquire Antitrust Division William Sayles, Ch&irman and Department of Justice Chief Executive Officer Central Power & Light Company P. O. Box 14141 Washington, D.C. 20444 P. O. Box 2121 Corpus Christi, Texas 78403 Joseph Knotts, Esquire Spruce, General Manager Nicholas S. Reynolds, Esquire G. K.

'Debevoise & Liberman City Public Service Board 1200 17th Street, N. W. P. O. Box 1771 20036 San Antonio, Texas 78201 Washington, D. C.

Douglas F. John, Esquire Jon C. Wood, Esquire McDermott, Will & Emery W. Roger Wilson, Esquire 1850 K Street, N.W. Matthews, NcWiin, Macfarlane Washington, D."C. 20036 & Barrett 1500 Alamo National Building San Antonio, Texas 78205 Robert O'Neil, Esquire i

Miller, Balis & O'Neil Perry G. Brittain, President 776 Executive Building Texas Utilities Generating Co.

1030 Fifteenth Street, N.W. 2001 Bryan Tower Washington, D.C. 20005 Dallas, Texas 75201 J. Irion Worsham, Esquire Ms. Eve'fn H.

. Smith Merlyn D. Sampels, Esquire Route 6,-Box 298 Gaf f ney,_ South Carolina 29340 Spencer C. Relyea, Esquire Worsham, Forsythe & Sampels 2001 Bryan Tower Dick T. Brown, Esquire.

800 Milam-Building Suite 2500 San-Antonio, Texas 78205 Dallas, Texas 75201 r

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R. L. Hancock, Director G. W. Oprea, Jr.

. City of Austin Electric Utility Executive Vice President Department Houston Lighting & Power Co.

P. O. Box 1088 P. O. Box 1700 Austin, Texas 73767 - Houston, Texas 77001 i

W. S. Rooson, General Manager

!- Jerry L. Harris, Esquire South Texas Electric Coop., 21c.

Richard C. Balough, Esquire City of Austin P. O. Box 151 Box 10 38 Nursery, Texas 77976 P. O.

Austin, Texas 73767 David T. Ro ss o , Esquire Don H..Davidson David M. Stahl, Esquire City Manager Isham, Lincoln & Beale City of Austin One First t!ational Plaza Chicago, Illinois 60603 P. O. Box 1038 Austin, Texas 78767 Donald Clements, Esquire Morgan Hunter, Esquire Gulf States Utilities Co.

McGinnis, Lochridge & Kilgore P. O. Box 2951 -

900 Congress Avenue Beaumont, Texas 77074 Austin, Texas 78701 Knoland J. Plucknett Kevin B. Pratt, Esquire Executive Director Linda Aaker, Esquire Committee on Power for the Southwest, Inc.

P. O. Box 12548 Capital Station 5541 Skelly Drive Austin, Texas 73767 Tulsa, Oklahoma 74135 E. W. Barnett, Esquire Jay M. Galt, Esquire Charles G.- Thrash, Jr. , Esquire Looney, Nichols, Johnson & Hayo J. Gregory Copeland, Esquire 219 Couch Drive Theodore ?. Weiss, Jr., Esquire Oklahoma City, Oklahoma 73101 Baker 4 Botts :

Robert E. Cohn, Esq.

3000 One Shell Plaza Houston, Texas 77002 Richard J. Le idi , Esq.

Butler, Binion, Rice, Cook Paul W. Eaton, Jr. , Esq. & Knapp l

Hinkle, Cox, Eaton, Coffield 1747 Pennsylvania Ave., N.W.

l and Hensley 9 n Floor l Washington, D.C. '20006 l P. O. Box 10 Roswell, New Mexico 88201 Leland F. Leatherman, Esq.

l McMath, Leatherman and Woods, F 711 West Third Street-Little Rock, Arkansas 72201 s .

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Somervell County Public Library P. O. Box 417 Glen Rose, Texas 76403 Maynard Human, General Manager Western Farmers Electric Coop.

P. O. Box 429 Anadarko, Oklahoma 73005 James E. Monahan Executive Vice' President and General Manager Brazos Electric Power Coop., Inc.

P. O. Box 6296 Waco, Texas 76706 Robert M. Rader, Esquire Conner, Moore & Corber 1747 Pennsylvania Avenue, N. W.

Washington, D. C. 20006 .

W. N. Woolsey, Esquire Dyer and Redford 1030 Petroleum Tower-Corpus Christi, Texas 78474 Mr. G. Holman King West Texas Utilities Co.

P. O. Box 841 Abilene, Texas 79604 -

'Maurice V. Brooks, Esq.

Brooks,-Gordon, Long &'Shahan

-P. O. Box 118 :

Abilene, Texas 79604 John A. Cameron, Jr. , Esquire Federal Energy Regulatory Commission 825 tierth Capitol Street LWashington, D.C. 20426

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\ WD %Y Marc R. Poirier Attorney for the Public Utiliti Board _of the City of Brownsvill Texas March 18, 1981

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