ML20003D225

Supplemental Status Rept Re 810223 Settlement Between Public Utils Board of City of Brownsville,Tx,Central & Southwest Corp,Central Power & Light Co & West Tx Utils. Characterizes Settlement Agreement.W/Certificate of Svc

ML20003D225
Person / Time
Site:	South Texas, Comanche Peak
Issue date:	03/18/1981
From:	Poirier M, Spiegel G BROWNSVILLE, TX, SPIEGEL & MCDIARMID
To:	Atomic Safety and Licensing Board Panel
References
ISSUANCES-A, NUDOCS 8103190629
Download: ML20003D225 (9)

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UNITED STATES OF AMERICA 6 usNPC 21 Iprp s

, h '1 BEFORE THE -

MAR 181981 >

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c, JM L.U , NUCLEAR REGULATORY COMMISSION S

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CIL:s cf the Secretty

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& tm:ce y d "ER'8" efore the Atomic Safety and Licensing Boa

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m9 Q Docket Nos. 50-498A, 35T$h Lighting & Power Company, )

et al. (South Texas Project, ) 50-499A Uniti 1 and 2) )

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Texas Utilities Generating Company, ) Docket Nos. 50-445A, et al. (Comanche Peak Steam ) 50-446A idectric Station, Units 1 and 2) )

SUPPLEMENTAL BROWNSVILLE STATUS REPORT OF MARCH 1981 Since the filing by the Public Utilities Board of the City of Brownsville, Texas, of its November 12, 1980 Comments, Browns-ville 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 differences 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 to the South Texas Project, a Transmission Services Agreement, interconnection arrangements, and Brownsville's agreement to take certain actions in pending litigation, including the Cemanche Peak and South Texas Project proceedings. More specifically, Brownsville has agreed that it will not, in these proceedings, seek any relief against N

810819O W

2-CSW or any CSW 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 restricted 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 ,

• /

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

With respect to the matter of interconnections between ERCOT 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 facilities, 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 af fect the carrying out of CSW's proposals involving these interconnections.

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" Comments of the Public Utilitiet Board of the City of Brownsville, Texas Opposing Proposed Settlement License Conditions."

3-CSW has reviewed this Status Report and agrees with the characterization of the settlement agreement contained herein and in Exhibit A, but not with the further requests for relief set forth 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 or otherwise prejudice any rights of Brownsville in the event Brownsville prosecutes an antitrust or other suit against, or otherwise pursues anticorapetitive or other allegations against, any party to f:he instant NRC proceeding, except as otherwise agreed with any such party.

Respectfully submitted, By '. '

George Spiegel

' ~ ' '

By /.-

Marc R. Poirier Law Offices of:

Spiegel & McDiarmid 2600 Virginia-Avenue, N.W.

Washington, D.C. 20037

-( 202) 333-4500 March 18, 1981

EXHIBIT A Brownsville continues to oppose NRC approval of the proposed settlement license conditions on the basis set forth in Browns-ville's Comments of November 12, 1980,-*/ with the following exceptions:

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

("lii") at lines 3-6 on page 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 systems.

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 to transmission and back-up service, 'the license should be withheld until such assurances are forthcoming.

" Comments of the Public Utilities Board of the City of

-*/ Brownsville, Texas,. Opposing Proposed Settlement License Conditions."

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Exhibit A 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. 27-26). The Brownsville-CSW settlement renders moot in this proceeding the position stated as to requiring other applicants to offer bulk power on a non-discrimi-natory basis.

Part III F. (pp. 28-30). The Brownsville-CSW settlement renders this as moot in this proceeding.

Part IV A. (pp. 31-42). The evidence appears clear that the system of agreements within ERCOT that prevent interconnec-tion with utilities engaged in interstate commerce has not been desired by CSW but has been imposed thereupon by Texas Utilities Company ("TU") and HLP. Thus, the proposed license conditions should require the applicants to eliminate, and not seek in the future to impose, such contractual provisions.

Part IV B. (pp. 42-43). This is rendered moot by the Brownsville-CSW settlement.

Part V. (pp. 44-77). This discussion of antitrust laws and policies governing the standards of Section 105(c) of the Atomic Energy Act is applicable subject to the foregoing modifi-cations of Brownsville's position.

UNITED STATES OF AMERICA BEFORE THE NUCLEAR REGULATORY COMMISSION BEFORE THE ATOMIC SAFETY LICENSING BOARD In the Matter of )

)

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

)

(South Texas Project, Unit Nos. )

1 and 2) )

)

)

)

In the Matter of )

)

TEZAS 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 BROWNSVILLE STATUS REPORT OF MARCH 1981 to be served on the following by deposit in the United States mail, first class, postage paid, this 18th day of March, 1981.

Marshall E. 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, Cmq.

Michael B. Blume, Esq. R. Gordon Gooch, Esquire Ann Hodgdon, Esq. John P. Mathis, Esquire Nuclear Regulatory Commission Baker & Botts Washington, D. C. 20555 1701 Pennsylvania Avenue, N, W.

Washington, D. C. 20006

Jerome Saltzman, 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 Axelrad & Toll Docketing & Service Section 1025 Connecticut Avenue, N. W.

Office of the Secretary Washington, D. C. 20036 Nuclear Regulatory Commission Washington, D. C. 2055 Frederick H. Ritts, Esquire Law Offices of Northcutt Ely Watergate 600 Building Sarah F. Holzswaig, Esquire Washington, D. C. 20037 Isham, Lincoln & Beale 1120 Connecticut Avenue, N.W. Wheatley & Wolleson Suite 325 1112 Watergate Office Building Washington, D.C. 20036 2600 Virginia Avenue, N. W.

Washington, D. C. 20037 Robert Fabrikant, Esquire Antitrust Division William Sayles, Chairman and Department of Justice Chief Executive Officer P. O. Box 14141 Central Power & Light Company Washington, D.C. 20444 P. O. Box 2121 Corpus Christi, Texas 78403 Joseph Knotts, Esquire Nicholas S. Reynolds, Esquire G. K. Spruce, General Manager Debevoise & Liberman City Public Service Board 1200 17th Street, N. W. P. O. Bo:t 1771 Washington, D. C. 20036 San Antonio, Texas 78201 Douglas F. John, Esquire Jon C. Wood, Esquire McDermott, Will & Emery W. Roger Wilson, Esquire 1850 K Street, N.W. Matthews, Nowlin, Macfarlane Washington, D.C. 20036 & Barrett 1500 Alamo National Building San Antonio, Texas 78205 Robert O'Neil, Esquire 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 Ms. Evelyn H. Smith J. Irion Worsham, Esquire Route 6, Box 298 Merlyn D. Sampels, Esquire Gaffney, South Carolina 29340 Spencer C. Relyea, Esquire Worsham, Forsythe & Sampels Dick'T. Brown, Esquire 2001 Bryan Tower

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

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 78767 Houston, Texas 77001 Jerry L. Harris, Esquire W. S. Robson, General Manager Richard C. Balough, Esquire South Texas Electric Coop., Inc.

City of Austin P. O. Box 151 P. O. Box 1088 Nursery, Texas 77976 Austin, Texas 78767 David T. Ro sso , Esquire Don H. Davidson David M. Stahl, Esquire City Managar Isham, Lincoln & Beale City of Austin One First National Plaza P. O. Box 1088 Chicago, Illinois 60603 Austin, Texas 78767 Donald Clements, Esquire Morgan Hunter, Esquire Gulf States Utilities Co.

McGinnis, Lochridge & Kilgore P. O. Box 2.951 900 Congress Avenue Beaumont, "exas 77074 Austin, Texas 78701 Knoland J. Plucknett Kevin B. Pratt, Esquire Executive Director Linda Aaker, Esquire Committee on Power for the P. O. Box 12548 Southwest, Inc.

Capital Station 5541 Skelly Drive Austin, Texas 78767 Tulsa, Oklahoma 74135 E. W. Barnett, Esquire Jay M. Galt, Esquire Charles G. Thrash, Jr., Esquire Looney, Nichols, Johnson & Hayes J. Gregory Copeland, Esquire 219 Couch Drive Theodore F. Weiss, Jr., Esquire Oklahoma City, Oklahoma 73101 Baker,& Botts

-3000 One.Shell Plaza Robert-E. Cohn, Esq.

Houston, Texas 77002 Richard J. Leidl, Esq. .

Butler, Binion, Rice, Cook Paul W. Eaton, Jr., Esq. & Knapp Hinkle, Cox, Eaton, Coffield 1747 Pennsylvania Ave., N.W.

and Hensley 9th Floor P. O. Box 10 .

Washington, D.C. 20006 Roswell, New Mexico 88201 Leland F. Leatherman, Esq.

McMath, Leatherman_and Woods, P.1 711 West Third Street Little Rock, Arkansas 72201

Somervell County Public Libt ry 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 l

Federal Energy Regulatory Commission 825 North Capitol Street Washington, D.C. 20426

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W O. %0 Marc R. Poirier Attorney for the Public Utilitiet Board of the City of Brownsville, Texas March 18, 1981