ML20010J194

Responds on Behalf of Municipal Energy Agency of Ms to NRC Request for Info Re Compliance Status of Antitrust License Conditions Cited in 800529 Notice of Violation.Negotiations W/Util Continue

ML20010J194
Person / Time
Site:	Grand Gulf
Issue date:	09/22/1981
From:	Mcdiarmid R SPIEGEL & MCDIARMID
To:	Harold Denton Office of Nuclear Reactor Regulation
References
ISSUANCES-A, NUDOCS 8109290692
Download: ML20010J194 (2)

Text

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LAW OFFICES CEORGE SPIEGEL. PC Sjpg gg;gh & McDgAg{3gg g) RON M LANDSMAN r.OBERT C. MCDIARMID BONNIE S. BLAIR SANDRA J. STREBEL 2600 VIRGINIA AVENUE. N.W. THOMAS C TRAUGER GO.'ERT A. JABLON JOHN M"CHAEL ADRAGNA JAMES N HORWOOD WASHINGTON. D.C. 20037 CYNTHIA S. BOGORAD ALAN J. ROTH TELEPHONE (202) 333-4500 GARY J NEWELL FRANCES E. FRANCIS M ARC R. PolRIER DANIEL l. DAVIDSON TELECOPIER (202) 333-:P974 MART 4 A MANILDI THOMAS N. MCHUGH. JR. JOSEPH L. VAN EATON DANIEL J. G!!TTMAN STEPHEN C. NICHOLS PETER K. MATT PATRICIA E. ST ACK DAYlO R STRAUS Or COusset September 22, 1981 gm SUSAN T. SHEPHERD O Y m '.

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,v Q)%l X p ,i Mr. Harold R. Denton  % E,' * ,

Director Office of Nuclcar Reactor h.A (@

%0 Regulation k NY ej U.S. Nuclear Regulatory .

kA J Commisslon @ ,

,v a Washington, D.C. 20555 Re: Mississippi Power & Light Company, Grand Gulf Nuclear Station, Units 1 and 2, NRC Docket Nos. 50-416A and 50-417A.

Dear Mr. Denton:

The Municipal Energy Agency of Mississippi ("MEAM")

has been requested by Mississippi Powec & Light Company

("MP&L") to respond in writing to your recent inquiry to Dotald Lutken, President of MP&L, as to the compliance status of MP&L. Your notice of May 29, 1980, concluded that MP&L had violated certain of its antitrust license conditions in its dealings with MEAM and its Members. Since the Summer of 1980, MEAM and MP&L have been involved in negotiation toward a settlement of their differences which would resolve the violat ..on of the antitrust license conditions which you had determined. Aa we have orally advised your staff, MFAM has been negotiating with MP&L on the terms of a partial require-ments contractual arrangement which would permit MEAM to finance and own a portion of the Grand Gulf plant. While our o3 perceptions may be in error, of course, we are of the view 3 that the personnel assigned to these negotiations by MP&L have been making an honest effort to work to seek to resolve f ,,

the dif ferences between the par-les and we are lopeful that /)pDj .!r_ 5 these partial requirement contracts will shortly be completed. This is not to say that the remaining differences "D 3 3 among the parties have no connection with the notice of my pg,Rg i i violation, but we are advised by counsel for MP&L that there appear to be ways in which these differences can be resolved, and if this is so, it would be expect ed that the partial requirements arrangements could be p.t in final form in the very near future. This would leave only the modifications to C109290692 010922 PDR ADOCK 05000416 M PDR

W Mr. Harold R. Denton September 22, 1981 the Grand Gulf ownership arrangements previously entered into by MP&L with the jouth Mississippi Electric Poster Association

("SMEPA") to be dealt with. These modifications are necessary because of different statutory powers, different authorities and the somewhat different situation of the parties. We are presently proceeding, in this regard, on the basis of representations of MP&L as to the status of the units and the arraagements. We have oeen advised by MP&L that it is not an.icipated that the modifications we presently believe necessary, based upon those representations, would be a substantial problem. Some of these modifications, of course, depend upon the final wording of the partial requirements arrangement presently under negotiation.

Assuming all of these arrangements can be worked out, there may be a further question which your staff has raised, as to MP&L's cooperation in dealing with the present statutory limitation on the interest rate which can be paid by municipalities in Mississippi on long-term debt. If interest rates remain as they presently are, a modification to the statutory limitations may be necessary in the upcoming session of the Legislature. We are advised that, if this is necessary, we can count on the support of MP&L to this end.

Given all these factors, we urge that nothing be done now that might niny down the licensing process for Grand Gulf. We would hor i we would be able to take advantage of an interest in _ nit (up to 2.48%) on or before the date of first operatAon.

. u very uly,

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Robert C. McDiarmid Attorney for the Municipal Energy Agency of Mississippi.

cc: Robert McGehee, Esq.

Attorney for MP&L Mayor Richard Webster Chairman, MEAM RCMcD:jbs