ML20009F409
| ML20009F409 | |
| Person / Time | |
|---|---|
| Site: | McGuire  |
| Issue date: | 07/17/1981 |
| From: | Dircks W NRC OFFICE OF THE EXECUTIVE DIRECTOR FOR OPERATIONS (EDO) |
| To: | Ahearne J NRC COMMISSION (OCM) |
| References | |
| NUDOCS 8107310115 | |
| Download: ML20009F409 (2) | |
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/K HEMORANDUM FOR:
Commissioner Ahearne 8
p97pI FROM:
Executive Director for Operations
SUBJECT:
MCGUIRE OPERATING LICENSE During a June 9,1981 briefing by the staff on the McGuire Operating License you requested information regarding the practical significance of antitrust license condition (2) (c) requiring a minimum reserve of 15 percent if the particular license issued would not provide sufficient reserve margin to allow Duke Power to reach the minimum level.
The particular license condition reads as follows:
"Each party to a reserve coordination arrangement will establish its own reserve criteria, but in no event shall the minimum installed reserve on each system be less than 15%, calculated as a percentage of estimated peak load responsibility. Either party...."
First, the 15% criteria applies to " installed" reserves. Generating units that are not operating because they are down for refueling or maintenance are still credited toward installed reserves.
Second, the 15% minimum installed reserve criteria is only a condition precedent to the sharing of reserves under a coordination arrangement.
It is not a condition precedent to the issuance of a license or the opera-tion of the McGuire nuclear generating unit. The license condition is associated with antitrust concerns and is designed to allow small electrical
Contact:
Argil Toalston, NRR Ext. 24891 oFnce) 0107310115 810717 sunsaur). PDR ADOCK 05000 DATEk NRC FORM 318 00. COI NRCM O2 40 OFFICIAL RECORD COPY
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I systems to obtain the economic and reliability benefits of sharing reserves with the larger electrical system of the applicant. The 15% minimum ir.-
stalled reserve criteria was primarily intended to relieve the applicant of sharing reserves with other systems that do not contribute their fair share toward the installed reserves of the combined electrical systems. Thus, the practical significance of the 15% minimum installed reserves is that a party with 1 css than 15% would not have an automatic right a the sharing of reserves under the antitrust license conditions.
y Wl3m L Um William J. Dircks Executive Director for Operations cc: Chairman Palladino Commissioner Gilinsky Commissioner Eradford OPE OGC SECY DISTRIBUTION:
UFB Reading UFB File AToalston Reading 0 ELD DMuller RVollmer EGCase HRDenton TRehm - ED0 EDO PPAS SHanauer RMattson TMurley BSnyder SCavanaugh - NRR-81-344 PBrandenburg - NRR-81-344 Docket Files LPDR PDR
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