ML20030D177
| ML20030D177 | |
| Person / Time | |
|---|---|
| Site: | Turkey Point, Saint Lucie  |
| Issue date: | 08/27/1981 |
| From: | Jablon R FLORIDA CITIES (FLORIDA MUNICIPAL UTILITIES ASSOCIATE, GAINESVILLE REGIONAL UTILITIES |
| To: | NRC COMMISSION (OCM) |
| Shared Package | |
| ML20030D178 | List: |
| References | |
| ISSUANCES-A, NUDOCS 8108310478 | |
| Download: ML20030D177 (15) | |
Text
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Florida Citic3: 8-2 7-8).
BEFORE THE UNITED STATES NUCLEAR REGULATORY COMMISSION In the Matter of
)
)
Florida Power & Light Company
)
Docket Nos. 50-389-A
)
50-335-A (St. Lucie Plant, Unit Nos. 1 & 2;
)
50-250-A Turkey Point Plant, Unit Nos. 3& 4)
)
50-251-A MOTION TO ESTABLISH PROCEDURES On May 22, 1978, the Fifth Circuit held that Florida Power & Light Company had entered into an illegal " conspiracy" under the antitrust laws "with Florida Power Corporation (Floride l
Power) to divide the wholesale power market in Florida."
G_ainesville Utilities v. Florida Power & Light Co.,
573 F.2d 292, 294 (1978), certiorari denied, 439 U.S. 966 (1978).
The Fifth Circuit remanded the case to the District Court for proceedings i
concerning relief.
On July 28, 1978 the Commission issoued an order requesting the views of Florida Power & Light Company
("FPL"), and other interested parties whether it should initiate a
105(3) proceeding, 42 U.S.C 2135(a).
The Commission held that the remanded proceedings might aid it in d.etermining what future Commission action is appropriate.
Thus, by order of Dece:aber 21, 1979, the Commission ruled that it would not then institute a 105(a) proceeding.
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= "Our decision to exercise our discretion not to initiate proceedings at this time is thus based on two grounds.
First, by awaiting the decision of the district court and the reme-dies it may provide, the Commission will be in a position to determine whether any additional Commission action may be needed to fulfill the antitrust purposes of the Atomic Energy Act.
Until the district court acts, that Commission determination clearly cannot be made.
Secondly, the district court may help clarify whether the threshold test triggering applica-tion of the statute has in fact been met."
(footnotes omitted).
The Commission stated, its action "is without prejudice to the filing of future petitions seeking the institution of 105(a) proceedings in this matter."
Id.,
- p. 3.
Florida Cities inform the Commission that the City of Gainesville has entered into a settlement of its dis'trict court action against Florida Power & Light Company.
A copy of the District Court's order dismissing the proceeding is attached as Attachment A.
Because of such settlement, there is and will be no district court decision to aid the Commission.
- However,
{l05(a) of the Atomic Energy Act gives the Commission the authority and responsibility to consider remedial relief based upon the Fifth Circuit's finding of illegality against Florida Power & Light Company in the Gainesville case.
Florida Cities request such relief. 1/
If the Commission is to further the purposes of the Atomic Energy Act in assuring that its licensees do not use the economic power inherent in licensed units to restrain trade, 1/
Florida Cities include the Lake Worth Utilities Authority, the New Smyrna Beach Utilities Commission, the Sebring Utilities Commission and the Cities of Alachua, Bartow, Fort Meade, Homestead, Key West, Kissimmee, Mount Dora, Newberry, St. Cloud, Starke and Tallahassee, Florida, and the Florida Municipal Utilities Association.
r
, Section 105(a) relief against Florida Power & Light Company is mandated.
The territorial agreement at issue in the Gainesville case is a per se Sherman Act violation.
5 ' F.2d at 299-300.
The reasons for such per sji application are well established.
Territorial divisions constitute an extreme form of price fixing, since there would be no price under which a system in one company's service area could obtain service from the other.1/ As the Fifth Circuit points out, 573 F.2d at 302-33, "[T]he concentration of the electric power industry in Florida" severely reduced Gainesville's alternatives.
Because of the territorial division, the Court found that these alternatives were limited to one.
Id.
Nor is there any reason to conclude that Florida Power &
Light Company has repented.
In recent deposition testimony in City of Gainesville v.
Florida Power & Light Company, S.D.
Fla.
No. 79-5101-CIV-JLK, Marshall Mcdonald, Chief Executive Officer of Florida Power & Light Company, testified that the Company has no program to assure compliance with the antitrust laws and, indeed, that it rejects the correctness of the Fif th Circuit's 1/
"One of the classic examples of a per se viclation of $1 is an agreement between competitors at the same level of the market structure to allocate territories in order to minimize competition.
Such concerted action is usually termed a ' horizontal' restraint, in contradistinction to combinations of persons at different levels of the market structure, e.g., manufacturers and distributors, which are termed ' vertical' restraints.
This Court has reiterated time and time again that '[h]orizontal territorial limitations are naked restraints of trade with no purpose except stifling of competition.'
White Motor Co. v. United States, 327 U.S.
253, 263 (1963).
Such limitations are per se violations of the Sherman Act." United States v. Topco Associates, 405 U.S.
596, 608 (1972).
i '
1 decision.
1/
Moreover, while FPL may argue that the antitrust conspiracy found in Gainesville should be given no effect because of the withdrawal of Florida Power Corporation from the conspiracy or otherwise, the evil of the territorial division was that it restricted municipalities in Florida Power & Light or Florida Power's service area to one potential source of supply.
FPL continues to refuse to deal in nuclear power and firm whole-sale power (among other things) based upon a territorial line.
For example, in the settlement entered into with the Government parties in Florida Power & Light Company (St. Lucie Unit No. 2),
Docket No. 50-389A, FPL commits to certain dealings, but only with utilities in or near its retail service area, thereby per-petuating the effects of the territorial division.
The settle-ment is attached as Attachment C. 2/
Florida Cities have argued to the St. Lucie Unit 2 Licensing Board that the Gainesville and Florida Power & Light decisions, supra, warrant summary disposition that a " situation inconsistent with the antitrust laws" exists or at least that 1/
The testimony is attached as Attachment B.
The deposition has been continued and FPL has the right to redireit.
2/
In FERC Docket No. ER78-19, FPI-filed a proposal with the Federal Energy Regulatory Commission to restrict the sale of who-lesale power and limit interchange availability to existing who-lasal? customers.
In Opinion No. 57 and 57-A, the Commission found that the proposed tariff restrictions "would eliminate the only practical source of base-load power or energy to competing utilities within the markets dominated by the Company" and that such " proposals were unjust and unreasonable under Sections 205 and 206 of the Federal Power Act, particularly because of their antitcompetitive effects."
Florida Power & Light Company, 32 PUR 4th 313, 314 (Slip Opinion, p.
- 2) and opinion No. 57-A, p.
1 (1979).
Attachment D.
Such refusals tc deal not only demonstrate FPL's antitcompetitive intent, but are both made possible by and reinforce the territorial restraints.
_ _ _.. ~
. ~
. collateral estoppel should be granted as to certain facts.
However, regardless whether Florida Cities are correct as to the binding nature of these decisions, certainly they warrant Commission action to institute a $105(a) investigation.
- Indeed, the ultimate purpose of the Commission's antitrust authority is "a legislative recognition 'that the nuclear industry originated as a Government monopoly and is in great measure the product of public funds [which] should not be permitted to develop into a private monopoly vis-a-vis [NRC] licensing process Alabama Power Co. (Joseph M.
Farley Nuclear Plant, Units 1 & 2),
ALAB-646 (p. 38 of Slip Opinion, June 30, 1981, quoting Consumers Power Company (Midland Units 1 & 2), ALAB-452, 6 NRC 892, 897 (1977)).
FPL had recently sought to acquire one munici-pal electric system, citing its nuclear advantage, and has indi-cated that it may be interested in pursuing this goal in the future.
Attachment E.
Within the past year there have been three offers (one successful) to acquire independent municipal systems by Florida Power Corporation.
Doubtless the competitive situation is affected by the absence of or the limited nature of competition for power sales across territorial lines.
Florida Cities state the foregoing to estasblish that the time has come to establish a $105(a) proceeding against Florida Power & Light Company. 1,/
The Cities will cooperate 1/
Florida Power Corporation has settled various actions.
Therefore, Florida Cities do not seek the institution of such proceeding against Floridc Power Corporation.
6-with any procedures ordered by the Commission.
One possibility is an investigation at the Commission or Staff level with a
opportunities to comment.
Alternat'vely, the St. Lucie Unit 2 construction permit proceeding has not yet commenced hearing.
Since many common issues are raised, the Commission might con-solidate its consideration of this matter with the St. Lucie 2 construction permit proceeding.
However, plainly immediate action is warranted.
1/
WHEREFORE, for the foregoing reasons, Florida Cities respectfully request that the Commission institute a $105(a) pro-ceeding in these dockets.
Respectfully submitted, M
Robert A.
Jablon Alan J.
Roth Attorneys for the Lake W rth Utilities o
Authority, the New Smyrna Beach Utilities Commission, the Sebring Utilities Commission, and the Cities of Alachua, Bartow, Fort Meade, Homestead, Key West, Kissimmee, Mount Dora, Newberry, St. Cloud, Starke and Tallahassee, Florida, and the Florida Municipal Utilities Association.
August 27, 1981 Law Offices of Spiegel & McDiarmid 2600 Virginia Avenue, N. W.
Washington, D.
C.
20037 (202) 333-4500 1/
In his decision issued in 19*,
, Judge Brown noted that there had been " ten years of litigation and one trip to the Supreme Court in a related case" before finally reaching "the merits in this private antitrust suit".
573 F.2d at 293.
Three additional years have passed, and the Commission has yet to investigate the matter on its merits.
Florida Citico: 8-27-81 BEFORE THE UNITED STATES NUCLEAR REGULAM RY COMMISSION In the Matter of
)
)
Florida Power & Light Company
)
Docket Nos. 50-389-A
)
50-335-A (St. Lucie Plant, Unit Nos. 1& 2;
)
50-250-A Turkey Point Plant, Unit Nos. 3 & 4)
)
50-251-A MOTION TO ESTABLISH PROCEDURES INDEX OF ATTACHMENTS ATTACHMENT A
" Order of Dismissal", August 4, 1981, Gainesville Utilities Department and City of Gainesville, Florida v. Florida Power & Light Co.,
M.D.
Fla. No.
68-305-Civ-J-WC ATTACHMENT B Excerpts from May 12, 1981 Deposition of Marshall Mcdonald, Florida Power & Light Company, in City of Gainesville, et al. v.
Florida Power & Light Co.,
S.D.
Fla. No. 79-5101-CIV-JLK ATTACHMENT C Stipclation with attached St. Lucie Plant, Unit No.
2 Proposed License Conditions, Florida Power &
Light Company, NRC Docket No. 50-389A, September 12, 1980 ATTACHMENT D Federal Energy Regulatory Commission Opinion Nos.
57 and 57-A dated August 3, 1979 (32 PUR 4th 313) and October 4, 1979, Florida Power & Light Company, FERC Docket No. ER78-19 ATTACHMENT E (1)
"An open letter to every Vero Beach resident from Florida Power & Light Company's Ralph Mulholland", Vero Beach PRESS-JOURNAL, September 5, 1976 (2)
Excerpt from Vero Beach City Commission Meeting with Remarks by R.
J.
Gardner, Florida Power & Light Company, January 23, 1980
(
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" UNITED STATES DISTRICT COURT MIDDLE DISTRICT OF FLORIDA
- JACKSONVILLE DIVISION g gy
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"E" a~
{pk GAINESVILLE UTILITIES
,1 DEPARTMENT AND CITY OF gg%," te
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GAINESVILLE, FLORIDA, 79.' :
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C Plaintiffs, 5 k;] 25 S e5 vs.
No. 68-305-Civ-J-WC FLORIDA POWER & LIGHT CO.,
Defendant.
ORDER OF DISMISSAL This cause having been presented to the Court upon Stipulation for Dismissal with Prejudice and the Court finding said Stipulation to be in order, it is hereupon ORDERED:
1.
That the above styled cau'se is dismissed with prejudice, each party to bear its own costs.
DONE AND. ORDERED at Jacksonville, Florida this day of August, 1981.
'?
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UN' ED ST D' TRICT JUDGE Copies.to:
./
Worth Rowley, Esq.'
r.
1990 M Street, N.W.
2 Suite 800 Washington, D. C. 20036 Herbert Dym, Esq.
888 16th Street, N.W.
Washington, D. C.
20006 James E. Cobb, Esq.
1500 American Heritage Life Building Jacksonville, Florida 32202 J. T.
Frankenberger, Esq.
T) V pM-"Op P. O. Box 490 fj7p Gainesville, Florida 32602
< s e,
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UNITSD STATES DISTRICT COURT i:
FOR THE SOUTHERN DISTRICT OF FLORIDA 2 E n<-)
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'l 3 i' THE CITY OF GAINESVILLE AND THE GAINESVILLr-l ALACHUA COUNTY REGIONAL UTILITIES BOARD, 'THE 4l LARE WORTH UTILITIES AUTHORITY, THE UTILITIES COMMISSION OF NEW SMYRNA BEACH, THE SEBRING 5l UTILITIES COMMISSION, THE CITIES OF ALACHUA, i
BARTOW, FORT MEADE, HOMESTEAD, KISSIMMEE, 6!
MOUNT DORA, NEWBERRY, SAINT CLOUD, STARKE and l
TALLAHASSEE, FLORIDA, 7;
i Plaintiffs, 8
l vs.
9 FLORIDA POWER AND LIGHT, 10 Defendant.
11
/
12 CASE NO. 79-5101-Civ-JLK 13 14 9250 West Flagler Street Miami, Florida 15l Tuesday, May 12, 1981 l
16 17 DEPOSITION OF MARSHALL MCDONALD 18 -
taken before GAIL ABRAMSON, Court Reporter and Notary l
19 l Public i:t and for the ' State of Florida at Large, pursuant l
20 l to Notice of Taking Deposition filed in the-above-styled 21 cause.
22 23 I
n 24 i;
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25 i j
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i m vcar NATIONAL REPORTING SERVICE MARTY LESHAW m ut
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1 L
A -
She is the one who has established policies for 2j retention of'the necessary legal retentions of documentation 3j G
Does she also have the job of insuring compliance 4
with these policies, or is that part of another organi=ation:
i i
5l A
Well, she has the responsibility of the documentar*
i a !.
files and so she has the responsibility to their--
1 4
That would include determining whether the policy S
she has stated are, in fact,being effected?
9 A
Yes.
10 4
Now, the policy that she has, has she issued 11 policy-- you're suggesting she has iscued the pol).cy, or do 12 you know whether she has7
~
~'
13 A
'I an nottsure.
I think so.
-~
14 C
Would you have had to approve any such policy?
15 A
Not necessarily.
11; 4
In the period,since you came to FPEL, da you know 1-if.FP&L has discarded or-destroyed any documents relating 18 to dealings with the cities?
19 A
No, I don't know.
20 What would you have done if I said. yes?-
21
_.4 said you meant to say no, Mr. Mcdonald; didn't you?
22 Eas anyone ever discussed with you tho' policy of 23 !
discarding or otherwise disposing of documents in relation I
24 ;
to an antitrust compliance program?
I A
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Do you know if the company has ever considered s
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destroying or discarding--
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A Who's the company?
't 4;
4 FP&L.
j, 5j A
Who's the company?
I g:
4 Anyone else in the company.
Il
_l A
I have no way of knowing what everyone else in the 8
mpany might have considered at any point in time about any subject.
g S
Okay, do you know if counsel for the company ever 10 11 discussed with any company officials the possibility of 12 disposing,. destroying, or otherwise getting rid of documents?
A I am not. aware of that.~
~
~
13 G
Are you familiar with the findings of the Fifth g4 Circuit Court in the Gainesville case in 1978?
15 A
Yes_
16 MR. GRIBBON:
You mean the whole opinion?
g.
18
- - MR. GUTTMAN:
I'm going to ask him a specific--
4 (By Mr. Guttman)
You read the case, I'm sure?
gg A
I read the case.
20 4
The Fifth Circuit in that case found that-the 21
,, l evidence compelled the finding that FP&L was part of a conspiracy, so you are aware of that; correct?
@r-gl You are not nodding, but I take that--
i ss 1
I'm glaring.
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8 NEW YORE WATIONAL REPCRTING Si".RVICE d
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MR. GRIBBON:
What the Fifth Circuit neld, we i
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2.
can't do anything about.
4
^ 3f MR. GUTTMAN:
I am not going to beat up the witnes:
- i 4h in light of that holding and he is not going to beat me 5 ji up either.
N 6..
G (By Mr. Guttman)
In light of that finding, what 7
specific action, if any, have you taken to insure FP&L's 3
compliance with the antitrust laws?
9 I'm not aware that we have ever been guilty of A
10 infringing any antitrust laws.
11 S
In your view, the Fif th Circuit holding in 1978 12 was not a finding-that FP&L had infringed on any antitrust 13 laws?
A In my opinion, the views of the Fifth Circuit were 14 incorrect.
15 16 The views of the jury who actually saw the evidence 17 observed the witnesses, was correct.
18
- 4 Preserving your dispute with the Fifth Circuit, in 19 light of their holding, what specific action, if any, have 20 y u taken to insure FP&L's compliance with the antitrust laws?
21 33 I'm not aware that we have not been complying with A
the aneitrust 1a.s.
F D ' 'f 4
Have you ever, as head of PP&L, taken any action or 24 i
! -engaged-in discussions to insure that the company stays in
- - - - - - ~
25,
j MEW YCM NATIONAL REoCTmNG SERVICE
ii) 4 1
compliance with the antitrust laws, if that is the premise?
t'
)
2 A
Yes, sir.
I have never agreed that there is any 3J obligation to share the output of our nuclear plants, but l,
4] since there is a theory that there is one, at the time that
'i 5[ we did not accept a participation in the South Dade Plant-,
d 'i I directed Mr. Gardner and Mr. Danese to offer to the rest l
- of the State all that I could speculate that this other 3
position might encompass which was our ability to find a 9
site for a plant, license that site and construct the plant to and to offer these services at a reasonable service fee to 11,
the other electrical systems in the State.
12 4
In addition to the Central Florida project, if we 13
.can refer to it by that name, what other action have you l
14 taken to insure or preserve your compliance with the ant-15 trust laws?
to A
I have had no target to aim for because I do not 1-believe that we have infringed on any antitrust laws.
18 4
Does FP&L have any program or similar type of gg activity under different names by which it instructs its 20 employees as to what the antitrust laws are and what 21 obligation the company might have?
22 l A
I don't think so.
3f 4
Now, this also may be a cause for a glare, but this a ;
is-~please, for the record, at footnote 14 at the Gainesville
.~
24 25 ] decision which you may recall, the officials of the power I7
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NC# YCas NAUCNAL REPCRDNG SERV!CE i
is cover rr.
m otv ieew =
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4 a n.
'.1 1, 5
1. companies deny the existence of a territorial agreement.
ed.
! I Then the court goes on to say, "Whera such testi-2 3
many is in conflict with contempraneous documents, we can 4i give it little weight."
l 5 [i Do you recall reading that?
g !;!
A I'm sure I read it.
I don't recall it.
1 l-]
O Do you recall Opinion No. 57, the Federal Power Commission?
It was a decision in the case where the company 3
sought to revise its tariff.
g 10 Do you recall any opinion-- do you recall in 1977 11 the company sought to limit eligibility under its' tariff?
12 Do you recall that?
13 A
I seem to recall there was something like that, Mr.
Guttman, but I don?t.know.
I don't recall any specifics g4 about it, 15 it; G
If there was something like that, would you have t
l g-been apprised of it or required to approve it?
i A
No.
13 gg l MR. GRISBON:
Approve the decision?
20 MR. GUTTMAN:
Approve the filing.
I was referring to the filing.
~
21 THE WITNESS:
To approve the filing?
22 23l 4
(By Mr. Guttman)
Yes, the decision to file.
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A No, I wouldn't have had to approve that.
34 ;
.o.
O Who would have had the authority to approve it?
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NC# YORIC NATICNAL REPCRT!NG SERVICI l
es count sr.
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I, i) t l A
I don't really know who had the authority to 6
"4 2
approve any changes in FERC filings.
3f 4
If you look at the organization charts which we i
4j just discussed, the one in '76 or '79, because the filings 5fmadein
'77 or
'78--
4 g
That thing makes my eyes buggy.
A 7l 4
What boxes in the organization chart would have I
had~the authority to finally approve-- to make the final 3
g approvement to change the tariff at the Fede.ral Commission?
A Well, Lloyd Williams, Director of Rates and g
gy Research reported to John Hudiberg.
4 S
in 1977,
'78, w uld Mr. Hudiberg have been the 12 J
g3 one to have final authority to approve.the filing of the g4 tariff change before the Power Commission?
15 A
It depends on the power he delegated to Mr. Williar 16 G
Do you recal.1-- you testified in the Vero Beach 17 case before the Federal Power Commission; is that correct?
gg A
I seem to have had that called to my attention by l
some of the pleadings.
gg l
4 Do you recall the decision issued by the judge in that proceeding?
A No, I really don't.
4 Let me quote.
It was Februa.mf 6th, 1978 decision.
s D, c) by Judge McGowan.
He stated that FP&L presented at times l reluctance and less than candid testimony.
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MEW YCRE NADCNAL REPCRDNG SERVICE is count sr.
unevv i c.u..
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7 1 '
Do vou recall--
!l 2]
A I don't remember being less than candid and I d.o.n't 3j recall his conment.
4 l!
a Well, in view of the-- I'm not asking if you agree, il 5'
but in view of what the Gainesville acd the Judge McGowan's 6l opinion stated, what action, if any, have you taken to insure i
7j that the testimony of FP&L in official proceedings is 8
accurate and complete?
9 A
I have no reason to believe that they have not to at all times been accurate ami complete; l
11 S
Do you know if in any opinion before the Federal 12 Power Commission in the last two or three years, the Commis-
~
13 sion characteri=ed the company's testimony as "incongruance 14 with the documents."?
15 A
No, I am not aware of that.
16 4
Would that be so,mething that would concern you?
~
17 A
If I believed'.it.
18 G
Would it likely be brought.to your attention?
19 A
Not necessarily.
20 S
Have you read the pleadings in the current case 21 where your. counsel is seeking to dismiss the motion of Talla-22 hassee-- excuse me.
Tallahassee requests to--
23 l A
I may have read it, but I don't recall it.
y.
U 24 i G
Would you characterize FP&L as a unique, innovative 25 !
resourceful or risk-taking company?
y Arw renic -
NAT:CNAL REPORTING SERVICE
[
to Causf sf.
MARTY LESM4W wgAmi
d UNITED STATES OF AMERICA NUCI. EAR REGULATRY COMMISSION 3EFCRE ""!E A"'OMIC SAFE""? AND LICENSING SOARD In he.".atter cf
)
)
.- OR!::A PCWER & LIGHT COMPANY
)
Cccket No. 50-389A isc. Lucie Plant, Unit No. 2)
)
STIPUIATION It is hereby stipulated and agreed by and among the
- ited States capart=ent of Justice
(" Department"), the Staff of the Nuclear Regulatory Ccmmission ("NRC Staff"),
and Ficrida ?cwer & Light Ccmpany ("FPL") as follows:
1.
Subject to paragraph 4 hereof, FPL hereby consents := inec perating into the license for St. Lucie Plan, Cnit No. 2 the conditions set out in the attached dec==ent, en itled "St.
Lucie Plant, Unit No. 2 -- P:cposed icense Conditions" (hereinafter "these conditions").
2.
Subject to paragraph 4 hereof, the Depart =ent a.d the N2C Staff are of the opinien, which they will cc=-
==icate to the Scard, that the licensing of St. Lucie Plant, 7 i: Nc. 2 = der chese cenditions will not create c maintain a si::ati.:n inconsistent with the antitrust laws.
The Depart -
sent wi.11 withdraw its request that the NRC conduct a p c-caeding against F?L under Section 105a of the Atomic Energy Ac by reascn of Gainer.ville Utilities Decart=ent v. Flcrida t
l
?cwer t.
- ich: C===any, 573 F.2d 292 (5th Cir.), cert. denied, t
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'Wp-O)C O
9A 1
. 439 U.S. 966 (2.978).
The Staff will cc=municate to the Com-
=.ssicn its opinion that the licensing of St. Lucie Plant, Uni: No. 2 under these ccaditions will eliminate any need for any p cceeding against ??L under Section 105a of the Atomic Inergy Act cf 1954, as amended, by reason of Gainesville, supra.
3.
Subject to paragraph 4 hereof, no pa *.y to chis S:ipula:icn will seek c support any modification of these condi icas in this p cceeding, although each party does reserve any right thereafter to seek such changes as may he app cyriate in acec: dance with the then existing law or fact-=' situation.
To the entent that any party to this S:ipulation participates further in the p cceeding, it will defend these ccnditions should they be challenged.
4.
The parties to this stipulatica will jointly request the scard te make these conditions in their entirety effective l
l 4
ediately, without prejudice to the Board's authority to i=pese different c: additienal conditiens after a hearing.
If the =ction ec =ake the license conditions in their entirety effec.ive '
ediately is not granted, ??L =ay withdraw its agree =ent to accept these conditions, in which event the epar =ent and the NRC Staff will not he bcund by anything i
1 stated herein; if such =cticn is granted, however, ??L will 1
abide by these ccnditiens and any nedificatiens p cperly i=pesed pursuant to Secticn 105c of the Atemic Energy Act.
5.
The parties to this Stipulatien will jointly recuest the Scard := direct the c:her parties to this p:cceeding to i
l l
l i
. sa: i ::h in writing with specificity any objections eney =ay have to any of these conditions and the legal and factual basis for each such objection.
6.
Ncching in this Stipulation or in these condi-ticas cens.itutes any evidence against FPL or any admission
'y F?L as := any issue in this or any other proceeding.
i *C b b /N4 k
.N 9
s Janet R.
Urban Herbert Dym
/
/A::=rney for the United Attorney for Florida Pcwer &
States Depart =ent of Light Company Justice C" d[C427 %i n
.I/
M, -
f n
as Sce : Cewey J.A. Scu. W ht, Jr.
A::=rney f== the Nuclear ttorney fer Florida Power &
Regula =ry C -4ssion Light Ccmpany
-..aa
,V Ca:ed: Septa-"er 12, 1980
l l
St. Lucie Plant, Unit No. 2 P ccesed License Condition 1 CEFIN!"' IONS (a) " Applicable area" means the area shown on the
=ap which is Actach=ent A and any other area in the state of Florida in which, in the future, the Company will engage in generatien, transmission or distribution of electric pcwer; p cvided, however, that an area shall not be deemed
- c be included within the " applicable area" solely because che Cc=pany acquires an cwnership interest of less than 5ct in a generating facility iccated in such area.
(h)
""'he Cc=pany" means Florida Pcwer & Light Company c: any successc: cc:peration, c: any assignee of the Ccmpany.
(c) " Neighboring entity" means a private c public cc pera icn, gcvernmental agency or authority, municipality, enral elec ric cecperative, or lawful association of any of
-he feregoing, which cwns, contractually cont:cis, or cperates e c
in gced faith p cposes to cwn, contractually centrol, c:
cperate facilities fc the generation c transmission of elec ricicy, which =eets each of the follcwing criteria:
(1) its existing c p cposed facilities are actually inter-cennected or technically feasible of interconnection with these
_ cf the Cenpany; (2) its existing c proposed facilities are fully
partially within the applicable area (3) it is, or upon c
ec==ence=ent of cperations, will be subject to regulation as a public utility with respect to rates or service under applicable state law, c: under the Federal Power Act, or
- .: is legally exempted f:cm such regulation by law.
l (d) "Neighhcring distribution system" means a private t
c public corpcration, governmental agency or authority,
=unicipality, rural electric cooperative, or lawful associa-tien of any of the foregoing, which engages or in good faith p cycses to engage in the distribution of electric energy at retail, whose existing c p cposed facilities are connected technically feasible of connection with those of the c
Cc=pany, and which =eets each of the criteria numbered (2) and (3) in paragraph (c) aheve.
(e) " Costs" neans cl1 app cgriate ecsts, including a reasonable retur.. on investment, which are reasonably allocable to an a :angement between two or nome electric systems under cocedicatien principles c generally accepted indust:y prac-tices.
In dete: + ing costs, no value shall be included fc Icss of revenues f cm a sale of power by cne party to a ec=sumer which ancther party might otherwise serve.
(f) The cities of Gainesville, Key West, Jacksonville 3each, Green Cove Springs, Clewiston, Lake Helen, Orlando and.'d. core Haven and the Fernandina Beach Division of the T'crida P':blic Utilities Cc=pany are considered to be t
.3 ceightering entities c: neighbcring distribution systems for the purpose of these license conditions, without regard for whether their facilities are technically feasible of inter-cennection wi:h the Cc=pany.
This provision creates specific exceptiens ec the definition of applicable area and shall be censtrued to bring within the applicable area any ne:
1ccated within the area shown on Attach =ent A or systa= no:
net listed here.
IN*IRCONNEC* IONS (a) The Cc==any shall interconnect at any technically feasible point en its system and operate in parallel pursuant t= a written agree =ent with any neighboring &ntity requesting such intercennectien.
(b) To the extent it is technically feasible, inter-cennections shall not be limited to 1cwer voltages when higher voltages are requested and available and shall not be li ' tad ec higher voltages when icwer voltages are re-quested and available, voltages "available" neans existing en the Cc=pany's system at the desired point of interconnectien.
Cc=pany nay include in its rate schedules previsions fc:
cenversien cf intercennection voltages and relecation of intercennectica points to acce==cdate lead g cwth and design changes censistent with continuing develcyment of Cc=pany's
-rans=ission system.
i sc) Interconnection agreements shall p cvide for che necessary cperating p ccedures and cent cl equipment as required fc: che safe and prudent cperation of the incarcennected systems.
(d) Interconnecticn agreements shall not embcdy p c-visions which i= pose li-4tations upon the use or rasale cf capacity and energy except as may be necessary tc. p ctact the reliability cf the Cc=pany's system.
(e) Interconnection agreements shall not p chibit the parties f:c= entering into cther interconnection agreements, but =ay include app cpriate provisiens to p ctect the'reli-ability of the Cc=pany's system and to ensure that the Cc=pany is cc=pensated for additional costs resulting f cm such other interconnections.
2 2.
RESERVE CIORDCTATION AND EMERGENCY PCWER (a) The Cc=pany shall sell emergency pcwer to any neighhcring entity with which it is interconnected, p cvided tha- -"=
eighboring entity has applied gecd utility prac-tices to plan, cperate and naintain a reasonable installed reserve nargin for the lead that it is meeting with its cwn rescurces.
Such installed reserve =argin, which =ay include the purchase of reserves f:cm other systems, shall censist of capacity which is as reliable as reserve capacity gene ally naintained in the electric utility industry, and which is
t i [
=a.ntar.ned and Operated in a manner consistent with good l
i utility practice.
The Cc=pany shall engage in such e=er-i I
gency sales when requested if and when capacity and energy f c= those are available f c= its cwn generating resources c:
cf intercennected electric systa=s, but only to the extent it can de so without jeopardicing seriice to its cus-that E=argency pcwer shall he furnished to the fullest t
=c=ers.
extent available f cm the sugplying party and required by
-he other party's a=argency.
The parties to reserve ccordinatien transactions (b) ec this sectics shall saistain such a= cunts of pursuan:
cpera_ing reserves as =ay be adequate to avoid the imposition in meeti=g f
cf "- sasenable de= ands on any other pa_tf (ies)
Ecw-the ac:=al centingencies of cperating their systems.
ever, Cc pany shall not i= pose upon any party an operating rese te scuire=ent which is unreasonable in light of such above.
par,r's ~4,.1=u= reserve chligations under paragraph (a)
""he Cc=pany, if it has generating capacity in excess (c) cf _he a= cunt called for by its sn :sserve criteria, shall cffer such excess te a neighboring entity to meet such entity's cwn =ini=u= :sse:re margin.
In lieu of selling such capacity, (to the extent of the capacity which would Oc pany =ay waive the c:herwise he effered in accordance with this paragraph)
=ini=== rese:re chligatica under paragraph (a) above as te
~***'w^v*www-,m,,
a party requesting to purchase capacity which Ccmpany would be required by this paragraph to sell.
(d) C =pany's cbligations under this section apply caly as to neighboring entities which agree to assume reciprocal cbligations to Company.
I.
.u_C""ETMICI PCWER AND DTERGY C =pany, when it can reasonably do so, shall exchange
=aintenance schedules and shall engage in purchases and sales of maintenance pcwer and energy with any neighboring entity which so requests.
Power shall be supplied to the fullest extent practicable for the *dme scheduled and in accc dance with generally accepted industry practice for
=aintenance pcwer and energy sales.
Company shall be re-q-'
ed to sell =sintenance power and energy only to the extent that it can do so without jeopardi ing service to its cust:=ars.
C==any's obligations under this section apply only as to neighbering entities which agree te assure recip ccal chligations to Company.
'7.
ICO'TC.T? ETERG*?
Cc=cany shall exchange data on costs of energy frem generating rescu==es available to it and, censistent with system security, sell or purchase econcmy energy (when appropria.e to de so under principles of economic dispatch and gecd system operating practices) to c f =m e. requesting neightcring entity en a basis that will apportien the savings fr = such transactions equally between C =pany and such entity.
This p cvision shall not be construed to preclude
f, e
_7_
econcmy energy transactions on a regional 2::angements fc basis or to recuire Company or neighboring entity to forego a =cre acerac.ive opportunity to sell or purchase economy Cc=pany's cb1_gations under this section apply only energy.
as ec neighboring entities which agree to assume reciprecal chligaticas to Company.
SRARDiG CF DTTERRU?TIONS AND CURTAILMS
'C.
Cc=pany may include reasonable p cvisions in any inter-centract or schedule for sale of connec ics agreement c:
wholesale pcwer reg.i=ing a neighboring entity or neighboring distribution system to implement an emergency program for icad, with the objective that the reducuien of custe=e Cc=pany and the other party shall ecuitably share the en tailment of customer lead, provided that interrup:icn c
- iens are consistant with Cc=pany's general such p:c e=ergency criteria filed with any appropriate regulatory acuhcrities.
This emergency p cgram would provide for auto-
=atic underfrecuency lead shedding or for load reduction by
=a.=al switching c: cther means, when and to the extent Cc==any reascnably dater =ines such to be necessary to main-tain the adecuacy of bulk electric pcwer su= ply.
i VII.
ACCISS TO ST. LUCIE UNIT NO. 2 (a)
Cc=pany will afford to the neighboring entities and neighbcring distribution systems listed below the cpportunity te participate in the ownership of St. Lucie Oni: No. 2 in the percentage shares listed below:
Clawisten
.19387 Ft. Pierce 1.02793 Fernandina Beach Divisien of Florida Public Utilities Company.45410 Gainesville 2.09359 Green Cove Springs
.13011 Ecmestead
.44499 Jacksenvi,11e Beach
.64538
.74946 Key Wes:
Lake Helen
.03121 l
Lake Worth
.89520
.03382 Mcc s Haven New Smyrna Beach
.40336 i
c:lande 6.08951 Starke
.11970 Vere Beach 1.03963
.79371 Flcrida Keys Cecperative 1
,_._-,_m,
..m
a i
i (b) As p=== 1y as practicable, but not later than 30 days af:e these conditions take effect, ccmpany shall trans-
=i: := the entities descrihed aheve copies of (i) the con-s ::::ica pe it f== St. Lucie Unit No. 2, (ii) the orders of the NRC and its subsidiary tribunals authori:ing issuance of the c==st:nction per=it, (iii) the final environ = ental
, iv) the final i==act s stement prepared by the NRC Staff,
(
safety evaluatics report prepared by the NRC Staff, (v) a stata=en: cf the costs incurred for St. Lucie Uniu No. 2 th = ugh the = cst recent date fe; which an accounting is then available, (vi) C:=pany's =ost current esti=ates of the
- 21 ccst of St. Lucie Unit No. 2 (including esti=ates of cash requiru=ents by calendar quarter through the date of
- ==ercial cperatien) and the schedule for ec=pletien of
- nst :::ica thcreof, (vii) the participatica agreement C:=pany has executed with Se=inole Electric C operative, Inc.
(c if ne such agreement has been executed, the =ost recent draft cf such agreement), (viii) C==pany's es".imate of annual capacity fact =:s fc St. Lucie Unit No. 2 and (ix) C =pany's
.--,-4.
_. - -.... - * - - - ~,,,. - -. *, -,..
.r,-,.-
.-----w---..---,,--,-rr-
m-
=
. esti= ate of cperating and maintenance expenses to be asscciated with St. Lucia Unit No. 2.
No such estimates shall hind C:=p:ny, and C==pany shall p cvide such information in eccc faith.
In addition, C=mmany shall make available
- = such en ities at Cemmany's offices copies of the pre-li 4-ary safety analysis = sport and envirenmental report suh=itted by Cc=pany to the NRC.
Company shall respond fully within 30 days to reasonable requests for additicnal inf===atien received f:cm said entity within 35 days of said entity's receiving the decu=ents enumerated in (i) th:= ugh (ix) cf this paragraph.
If the NRC finds that the 0:=pany has failed to sspend fully within 30. days to any such reasenable requests, the entity shall be allowed to parti:ipate in accordance with such
'd e schedule as the NRC de=-= app cpriate.
(c) Within 120 days after trancmittal of the infor=ation enu=erated in paragraph (b), each such entity which desires
- = participate in St. Lucie No. 2 by cwnership shall pro-vide C:==any with a written ecm=it=ent (i) that it intends
- = participate in St. Lucie No. 2 and to negotiate in good faith with the C:==any as to the ter s of a participation acres =ent, (ii) that, in the event ag sement.is reacher' as j
. :: the :erms of a participation agreement, it will assist ene C:npany as requested in chtsining the required app cval of the NRC, and (iii) that it will in geed faith seek to obtain the necessary financing for its participation.
Such
- ==i:=ent shall be accc=panied by a payment equal to ten percen: (IM) cf the a= cunt stated pursuant to paragraph (b) (v) =cl iplied by the participaticu share to which the
- -i =ent applies (expressed as a decimal fraction).
Upon receiving such payment, the C =pany shall agree is writing to neg= iate in gecd faith as to the te s of a participa-tica agree =ent with the entities which p cvide the written d
ents and pay =ents described aheve.
Such written agree =ent shall also p cvide that in the event that the C:=pany fails to execute the participation agreement reached be: ween the C:=pany and such entity as p cvided in paragraph (d) belew, each such entity shall have the right to initi-a:e an enf ::e=ce.
acti n before t;he 'iRC, and to initiate zn acti:n aesinst the C==any in an app =priate court and/c l
agency for any ::elief t.iat may ctherwise he available to 1
such entity under law.
Che C::gany shall have no chliga-ti:n under this sect.* en to any entity which fails to provide I
within the ti=e specified herein the written cc d t=ent and
i
. pay =ene described above, except as may otherwise he pro-vifed fc in these conditions c: he agreed upon in writing by the Cc=pany ard each such entity.
(d) (1) If, within 120 days after p cviding the written ec=mit=ents and payments described in paragraph (c), any entities p cviding such written ec=mitments and payments and the Cc=pany agree as to the terms of a participation agrance.sc, the Company and such entities shall execute the participatics agreement, and Company shall seek the required approval of the NRC for transfer cf an cwnership interest to such entity.
The participation agreement shall p cvide :c: closing 60 days after NRC approval of partici-patien, con *d gent ucen such entity's having ebtained the necessarf financing fc its participation, at which ti=e an cwnership interest wculd he conveyed to the participant, and the participant wculd pay its (percentage) share of all costs incu==ed in connection with St. Lucie Unit No. 2 to the date of closing, less any pay =ent =ade by such entity pursuant to paragraph (c) herecf.
(d) (2) If NRC app cval is =ct chtained c if, by a date 60 days after NRC app cval is obtained, such enti y has =ct been able to obtain the necessary financing, the pay =en: z.ade by such entity pursuant to paragraph (c) shall be refunded by company to such entity, and Company
~13-I shall have no it:ther obliga icn under this section to f
such en _ity.
Notwithstanding the foregoing, if an entity is unable to close at the time specified solely by reason of its inability, despite a good faith effort, to obtain necessary financing, such entity shall be allowed a 100-day ex ensics of time for closing.
If, for whatever reason, it fails to close within the 100-day extension period, C:=pany shall refund to the entity the pay =ent made by it pursuan: := paragraph (c) and C:mpany shall have no further obligati:n under this section to such entity; provided, b= wever, that if a p cceeding with respect to the validity cf cbligaticas to be issued by the entity to obtain the necessary financing is pending before the Florida Supre=e C:ur at the c=nclusion of the 100-day extension period, then such period shall be extended unuil 50 day
- aftr.: entry of a final jufg=ent in such p cceeding.
(d) (3) If a neighboring entity c neighboring distribution syste= eligihle f : participatien under these conditiens is prevented f::= =aking the 10% commit =ent payment required by secti:n V :(c) due to cperati n of a state or federal statute c: censeitunicnal prevision c because it is i=possible
e fc i:
c chtain funds within the required time period thrcugh any of tne ec==ercial channels ordinarily available Oc==icipalities to finance payments required in advance of chtaining 1cng-ter= financing (but excluding in all insta.cas any i= pedi =en which can be removed by action of he==icipality within the required time peried), such neighboring entity will not be obligated to make such ec=mit-
=ent pay =ent; p cvided, however, that the neighboring entity neighbering distribution system failing to make the ecm-c:
=i=ent pay =ent in reliance en this p cvision shall have the burden of establishing in any enforce =ent p cceeding the existence of one of the conditions specified herein as a basis f== being relieved of the obligation to make such pay =ent
' ails to de so shall have no right to participatien
='4" 4-l in St. Lucia Unit No. 2 under this section.
1 (d) (4) If any entity described in paragraph (d) (1) c (d) (2) dces net close by the time specified herein, for any reasen other than failure to obtain NRC app cval or failure chtain the necessary financing (having =ade a gced faith
- =
effer: Oc de sc), C==pany shall ref=d to tne entity the pay =en: =ade by it pursuant to paragraph (c), and C==pany shall have ne further ebligatien under this.section to such entity.
II, within 120 days after p cviding the written (e) (1)
=c-i:=ents and pay =ents described in paragraph (c), any anti.ies previding such written commitments and payments and c:=pany are u=able to agree as to the terms of a partici-any such entity may make a written request pa ics agreement, C:=pany that their dispute with respect to the terms of the par _icipatics agreement be submitted to arbitration.
l Cpen the making of such a request by any such entity, C mpany and each such entity shall enter into an agreement that the shall be final and binding as between the Company arbitrati==
If no written request for arbitration is and such entity.
=ade within the 120-day period specified in this paragraph by an entity that p cvided the written c=mmit=ent and payment described in paragraph (c), the payment made by such entity pursuan: t: paragraph (c) shall be refunded by Company to such entity, and C==any snall have no further obSgation under this section to such entity.
Within ten days after the ma'dng C==pany and all entities making such of any such recuest, recuests shall c=nfer and attan t to agree upon the appoint-If such agreement is not reached,
=ent of a single arbitrator.
any such entity may request the American either C==pany c:
l '
Arbitrati== Asscciation to appoint an arbitrator, who shall be an att= ney with knowledge of the electric utility in'dustry.
shall conduct a hearirg to dete==ine reasonable The arbitz. scc:
1 I
. ter=s fe che disputed p cvisions of the. participation agree =ent, giving due regard ec the context of participation agree =ents negotiated a=cng ecmparable parties in the electric u ility industry and the particular business situation con-frencing Cc=pany and the entities requesting arbitration, and shall reswJ.ve all disputes in accordance with this section and
- he te.._s of the agreement to arbitrate; provided, however, that the p cvisiens p cposed by the Cc=pany as to its liability to the other participants, and as to sharing the cost of dis-charging uninsured third party liability,
/ in connection with the design, ec=struction, operatien, =aintenance and decc-4 ssiening cf St. Lucie Unit No. 2 shall be app cved by the arbi.: ster :=less he deter =ines that the p cvision p c-pcsed by the ce=puy constitutes an unreasonable c cposal which renders =eaningless the Cc=pany's offer of participatien in St. Lucie Unit No. 2.
The decisien of the arbitrator shall be
_./
.t.y such liability c:cvisica shall not be intended c relieve C:=pany c: any other cwner of the plant f:c= any liability which it =ay have to any third party under any federal, state or cther law, nor shall such provision p cvide the basis for any defense by Cc=pany, or any other cwner of the plant, any i= pedi =ent to or delay in any pay =ent, cost, cexpense c: ebligatien arising f:cm a claim of.lia-bility to a third party =ade against the Company or any other cwner of the plant.
To the extent that such p cvision concerns liability to third parties, such p cvision shall relate solely ec sub cganica rights as he ween Cc=pany and participants.-
. rendered within
.'O days of the conclusien of the hearing, unless such time is extended by all of the parties, and sh.111 he final and binding as between the Ccmpany and each such entity.
Nothing herein shall be construed to deprive the NRC of its jurisdiction to enforce the terms of this li.:ense under the A =mic Energy Act.
(e) (2) P cmptly after the arbitrator renders his decision, the.C==pany and any such entity shall execute the partici-pa ica agreement, cent =4ning the provisions for subsequent closing described in paragraph (d) (1), and ccmpany shall seek the required app cval of the NRC for transfer of an cwnership interest to such entity.
If any such entity dcas
=== execute the parta.cipatien agreement, ccmpany shall refund
- c the entity the pay =ent made by it pursuant to paragraph (c) and, Cc=pany shall have ne further obligation under this section Oc such entity.
If Ccmpany does not execute the each such entity shall have the right par icipatics agreement, request the NRC to initiate an enforce =ent action and to
=
institute an action against the Ccmpany in an appropriate ru : and/c: agency fer any relief that may othe: vise be available to such entity under law.
Upon execution of the participation agree =ent, the p cvisiens of paragraph (d) (2) shall apply.
. that any entity described in paragraph (f) In che event hereof dcas not participate in the cwnership of St.
(a)
Lucie
.ucie Unit No. 2 or participates in the ownership of St.
No. 2 in an a=ount less than the amount provided for in Uni:
hereof, it shall be per:sitted by Cc=pany to paragraph (a)
- ansfer all or a portion of its participation rights under chis section to Flcrida Municipal Power Agency or any successor or to (together hereinafter referred to as "FMPA")
thereof any other entity entitled to participate under these license cenditiens, p cvided that FMPA or such other entity agress to assu=e all of the transferring entity's obligations to cc=pany in ccnnection with the participation rights transferred.
Unless otherwise agreed to by Cc=pany and FMPA or such other en ity, in no event shall FMPA or such other entity be entitled
- = any greater pe iods of ti=e for the perfor=ance of its cbligatiens under this sectice than its transferer would have been entitled to pric: to the transfer.
i Cc=pany =ay, in its unilateral discretien, entend (g) (1) tion to be the time for any of the acticns required by this sec Lucie taken by an entity desiring to participate in St.
No Any such extension shall be in writing.
Unit No. 2.
extensica pe==itted by Cc=pany to any entity shall require C:=pany ec permit further extensions of time to such entity or
- =
similar entensicns to other entities.
i I
l
' (g) (2) Any encicy which is named in the construction per=ic f== Ficrida Pcwer & Light St. Lucie Uni No. 2 (dated May 2, 1977) and which elects to participate in St. Lucie i
Unit No. 2 pursuant to this section dcas so in lieu of any participacion rights p cvided in the license conditions cen _ained in the construction pe==it as issued.
(h) In no event shall the Cc=pany he obligated to p:= vide participatien in St. Lucia Unit No. 2 under this section to any entity unless and until the Cc=pany and suc:h entity executs a participatien agree =ent and such entity pays the Cc=pany its percentage share of all costs incurred che date of execution of the participation agree =ent in t=
connection with St. Lucia Unit No. 2.
(i) Cc=pany =ay retain ec=plete cont cl and act for the Other participants with respect to the design, engineering, cc=st:.:=_ ion, cperatien and =aintenance of St. Lucie Unit Nc. 2, and =ake all decisions relevant thereto insofar as they deal with the relationship betwo m the Cc=pany and the c her participants, including (but =ct li=ited to) decisiens regarding adherence to NRC health, safety and enviren= ental
~
regu'ariens, changes i= construction schedule, =cdification cancellation of the unit and operation at such time and c:
such capacity levels as it dee=s p cpar, all without the censent of any participanc.
Consistent with the foregoing, che participaticn agreement shall p cvide for an advisory cc
'ctee as a vehicle for cc==unication and censultatien a==ng all of the cwners, and except where the public interect
. cequi.res i:-=edia e unilateral action, Ccmpany shall p c=pely them.
- .nic:= participants of actions which =ay =r.terially affect Ncching centained herein shall preclude the Company (j) to f:cm instituting an action against any entity, wi e respect Lucie Unit commit =ent to participate in St.
its pa.1:icipation c:
2, in an app cpriate court for any relAaf that may be No.
availabla := it under law.
Any refund =ade by Ccmpany to any entity pursuant to (k) h entity.
this sec_ien shall be of the full amount paid by suc Cc=pany shall not be required by this section to pay interest en any such refund.
subject to NRC app cval, (1) Any entity shall have the right, Lucie ctherwise alienate its ownership share in St.
- = sell c:
"c. 2 after it has taken title to said cwnership share to an Uni:
elec :ic u.ility which agrees to and is financially qualified to Lucie assu=a the chligations of the seller with respect to St.
Any right t= centest the p cspective buyer's financial Unit Nc.
2.
- alifications will be waived by Company unless Company informs C of Ccm-the p cspective seller, p cspective buyer, and the NR days of Company's receipt of pany's Objecticas within thirty (30) nc: ice of the p cspective sala.
ACCISS CO FU" CR" NCr** vu PLANTS thoseneighboriniensit5s " ~
C =pany will afford to:
(a) and neighbcring distributien systems entitled under any St.
f Lucie Unit 2 license conditicas to any cpportunity to par-Lucie Unit No.
2, and (b) 1 ticipace in the evnership of St.
any cener neighbecing entity c neighboring distribution
- =
. sys:em not in existence on January 1, 1980, but which cperates genera:icn, transmission, or distribution facilities in the applicable area as of the date that a construction permit is s"
- tend to the NRC by Company, the opportunity to participate in the cwnership of all nuclear units for which the Ccmpany files a construction permit application with the NRC prior to January 1,1990, p =vided, however, that no opportunity to par-ticipate need be afforded to any neighbcring entity or neighhcring dis. ibution system in an amount, if any, which would, in the aggregate, result in its owning nuclear ganarcting capacity, or enjoying direct access thereto by unit power purchase or par-ticipation th=cugh a joint agency, as a percentage of its peak le ad in excess of what Company's percent of same would be after the additien of the p cycsed plant.
If a joint pcwer agency eualifies fc participation hereunder as a neighboring entity, its nuclear generating capacity and peak Icad shall be deemed to be he aggregate of the nuclear generating capacities and peak leads cf its =e=hers within the applicable area, excluding any i
such =e=hers which elect to exarcise direct. participation rights hereunder.
In no event shall this license condition he construed
- = require Cc=pany to p cvide cwnership interest in any such nuclea unit in a total a=cune exceeding 20 percent of the Cc=pany's inter-est in such unit.
Where cwnership in a nuclear unit is shared between the Cc=pany and cne c more other utilities, the Campany's chligatics hereunder with respect to that nuclear unit shall be reduced to the extent that any utility to which participation wculd~
he afforded under this conditien has been afforded an opper-tunity== chtain access to the nuclear unit,..either directly
=
. :: thrcugh a feine agency.
IX.
'a) Subject to the limitations centained in paragraphs sc) and (d), C:=pany, upen' timely request, shall sell firm wholesale power en a full c= partial requirements basis to (1) any neighhcring entity up to the amcunt required to supply electric serrica to its retail cus:cmers, to these wholesale cust==ers which are supplied by the neighhering entity and which were so supplied on January 2, 1979, and to these wholesale custcmers which were previcusly supplied by C:=pany and which are new supplied by such neighboring entity. and (2) any neighboring distribution system up to the a=cune required to supply electric service to its retail c
(a) (2) cus==ars.
Any sales made under subsection (a) (1) aheve =ay be decreased by the sum at any one ti=e of (i) pcwer =ade available to such neighhering entity or neighboring dis rihu ica system as a result of participation in (or
- purchnse of unit pcwer f cm) ene of c mpany's generating units and (ii) cther power transmitted to such neighboring entity c: neighhcring distribution system by Ccmpany.
(b) Ic neighiering entities which supply power to
=cre neighhering entities or neighhering distribution One c:
systa=s eligible to directly request service under this con-di_ien, C:=pany will alternatively make sales to such supplying entities to the extent that such service would he available under the previcus paragraph (a) to such neighh::ing entities c neightcring distribution system (s),
. p:=v:.ded : hat such sales can be =ade en cer=s and condi-icas which do not expand C==pany's cbligaticns to supply wholesale pcwer beycnd che quantities otherwise referred
-"is section.
(c) Cc=pany may require such advance notice of the intentica Oc take se: rice and of the service contract de= ands as is reasenahle for Cc==.any's e.cwer suc.c.iv.clanning, and nay i= pose reasenchie ld'd tations upen the i= creases i=
such service centract demands, provided that no such limita-
.ica shall be i= posed tu prevent a neighboring entity c neighhcring distributien system f:cs assu=ing a lead which has been served Ad ectly by C==pany c: a lead which Cc=pany has scught to serve.
Cc=pany shall not establish rates, te s
c: conditiens (ether than th6 edvance notice p cvision described wholesale power which differentiate aheve) fc: the sale cd
'd-
=- ng cus:c=ers en the basis of whether c not an entity has histcrically been a wholesale fir = power custc=e cf the Cc=pany.
(d) Cc=pany shall not have any chligatien to p cvide wholesale pcuer to:
(1) any electric utility which existed en Janca:7 1, 1979, and wh.cn was not a neighboring entity c
neighhcring distribution systa= as of that date; (2) anv.
rural e e-
- - cccperative (c: =enbership cc peration) in i
a quantity greater than that required to serve such cccpera-tive (c any distributien cocperative se:ved by such co-operative) f== icads in the area which has histcrically been supplied at whciesale c: at retail hv. the Cc==. anv. ; c:
- 2) a neig'..hcring entity which en January 1, 1979, cwns c: cent:cis e'.e---d- "acilities with nc=inal capacity in
O a
, excess of 200.we, p;cvided that this item (d) (3) shall not relieve the C =pany f cm the alternative chligation, provided in paragraph (b), to =ake sales to a neighboring entity which supplies.gewer t= an eligible neighboring entity or neighbor-ing distrihutien system in lieu of =a. king such sales directly
- =.he eligible neighbo.-ing entity c neighboring distribution sys.e=.
(e) Wholesale pcwer sales agreements shall not restrict use or resale of power said pursuant to such agreements except as =ay he necessary to p=ctact the reliability of C=mpany's system.
Celivery point voltages shall be established censis-tant with the p=cvisiens of section II(b).
X.
"RETSMISSICN SERVICIS (a) The C =pany shall transmit pcwer (1) between C =pany pcwer scurces and neighhcring entities or neighhcr-ing distribution systems with which C==pany_is connected, (2) between two c a=cng more than two neightcring entities, er sections of a neighhcring entity's system which are geographically separated, with which, now or in the future, C:=pany is interconnected, (3) between any neighhcring entity with whc=, new or in the future, C==peny is inte:-
- =nnected and one c: =cre neighboring distribution system (s) with wh =, new c in the futura 4,t is connected, (4) between any neighhcring entity c neighhering distribution system (s) and any c her electric utility outside the applicable area, and-(5) f::= any cualifying cogeneration facility c small power p Oduction facility (as defined by the: Federal Energy
?.egula:Ory C::::issien in 13 CFR Part 292, Schpart 3) with va':n C:::any is interconnected to a neighboring entity c:
=
r
. ne.g..tec:.ng distribution system, where both the cwner of the qual.fying ccgeneration facility and the neighboring entity or neigntering distributien system to which such transmission service is p cvided agree that such neighhcring entity or neighbering distributien system will =ake, during the time and := the extent of its purchases f:cm the cogeneration facility, any sales of "Back69 pcwer" and ":".aintenance gewer" (as -lese es==s are defined in applicable Federal F.nergy Regu-la cry Cc ission regulations) to the qualifying cogeneratien facility c small pcwer p cducticn facility; provided however
-hat nc-ling in this item (5) shall diminish Ccmpany's obligatiens under sectics IX hereof.
Company shall provide transmission service under this paragraph caly if (1) Company's and other connected transmissien lines form a centinuous electric path he: ween he supplying and the recipient systems; (2) permission u.ilice other systems' transmission lines can he obtained by the p cpenent of the arrangement; (3) the services can reasenably he acce==cdated f:cm a technical standpoint with-significantly jecpardicing Ccmpany's reliability or its cut use of trans=ission facilities; (4) reasonabic advance request is received f cm the neighboring entity er neighhering distri-bu.icn syste= seeking such services to the extent that such nc ice is regad ed fe cperating or planning purposes, p cvided that Cc.pany distributes a written *dmetable setting forth ceascnable perieds of ti=e within which such advance notice nus; he received fc trans=issien se: rices over existing ec=pany facilities; and (5) a reasenable =agnitude, time and duration fc the ::ansactions is specified pric: ec the ecm=ence=ent of the I
- 10s=is3ien.
i
. th! Cc=pany's pcovision of transmission service under
)
this actien shall be en the basis which compensates it fc its costs of ::ans=ission reasonably alloczble to the service in accc: dance with a transmission agreement, transmission f
tariff c en another mutually agreeable basis.
Company shall file such transmission agreements c transmission ariffs with the Federal F.nergy Regulatory Cc=:nission or In the event that the Company and its successer agency.
a requesting entity are unable to agree regarding transmission services required to be provided under this secu on X, Cc=pany shall, upon the request of such entity, i= mediately file a service agreement at the Federal F.nargy Regulatory Cc dssica c its successor agency providing for such service.
Nothing in this license shall be const ed te f cm a re-faquire Cc=pcny to wheel power and energy to c tail cus:c=ar.
(c) Cc=pany shall keep requesting neighboring entities and neighboring distributics systema informed of its trans-
=issica pl=-ning and const=uction p cgrams and sha15 include therein sufficient transmission capacity as required by such er-'
'as, p cvided that such entities p cvide the Ccmpany sufficient advance notice of thei: requireLants and contract in a ti=ely =anner to rei= burse the Ccmpany_for costs, as allcwed by the regula:c:f agency having jurisdiction, app cyriately attributable to ccmpliance with the request..
~
Ecwever, Cc=pany shall neu be re.uired to construct any rans=ission facility (1) which will be of no de=cnstrable pcesent c future electrical benefit to Cc=pany, unless the
fac:.1;.:v cannce reasonably be constructed by the requesting enti.:y se'.ely by reason of the Cc=pany's unreasonable refusal := gran. an easement or license, or refusal to eccperate is re=cving i= pediments to the siting of any such
- re ssics facility, (2).which would jeopardice Ccepany's J
ability ec finance or construct, en reasonable te_':ts, facili ies to =eet its cwn anticipated system requirements
- = sa isfy existing contractual obligatiens to other c:
electric systems, or (3) which could reasonably be constructed by the requesting entity without duplicating any portion of Cc=pany's transmissim system.
In such cases where. Company elects =ct to cens ruct transmission facilities, the e-questing system shall have the option of constructing and
- c.ing such facilities and interconnecting them with Ccmpany's facilities.
For the purposes of section X, upgrading present
- ans=issics facilities shall be considered always to have sc=e de=enstrable present or future electrical benefit to _
Oc=pany.
(d)
Nctwithstanding the foregoing, Company shall not d= t4 s se cecperate in trans=itting power produced f cm any neightcring entity's (including FMPA's) or neighboring dis-
- ibutien system's cwnership share, or the c_wnership share cf any other Ficrida electric utility for which Company's
- ans ission system is necessary to delivar.such pcwer, of
~
-he-Alvin W. Vogtle Nuclear Units f:cm a point c points-of interconnection between Cc=pany and Gec gia Pcwer Ccmpany
- c pein:s cf cennection described in (a) hereof between
. Oc=pany and c her utilities.
This condition shall not be construed :c require C==cany to construcu ::ansmission facilities i
wi:hin the S:ste of Georgia.
Cc=pany shall not be precluded i
f:c= requiring such neighboring entities, neighboring distri-butien systems and cuher utilities to make reasonable financial arrangements to pay for the construction of those portions of facilities to be utiliced by them and which are constructed for this puccosa.
.C.
ACCESS TO PCOLING ARRANGEMENTS Cc=pany shall sponsor the membership of any neighbor-ing entity in any pcoling arrangement to which Company is presently a party or to which, during the term of this license, le=pany becc=es a party, provided, however, that the neighbor-ing entity satisfies =embership qualifications which are reascnable and not unduly discriminatory.
To the extent tha: Cc=pany enters into pooling a::angements during the t.
- er= of the license, it shall use its best efforts
- = include p cvisions therein which permit requesting neighhering entities the opportunity to particip_te a
in the a :angement on a basis that is reasonable and not unduly disc d-47. ate:7 XII.
D.!5CIC" CN OF C"TER R'GITLATORY AGENCIES Rate schedules and agreements, as required to p cvide f:: the facilities and a :angements needed to i= clement the bul.% pcwer supply policies herein, are to be submitted by the Cenpany sc the regulatory agency having-jurisdiction
0 a
ne cc=pany agrees to include a provision in new nereef.
rate schedule sub=issions associated with these license if the rates become effective cendi_iens ec the effect that, prior te the resciution of contested issues associated with
- te new rate schedules and are thereafter reduced in acccrdance with the regulatory proceedings and findings, a=c:cyriate refunds (including interest) would be made to re._cactively reflect the decrease.
IMPLE.EN*A* ION v
- CII.
These license conditions do not preclude ccmpany (a) f c= seeking such changes in these conditions, including
' - --- '* i ed to section VIII, as may be aparepriate in
~
ac-- d"ce with the then existing law or f actual situation.
These conditions do not preclude Company f cm (b) effering additienal wholesale pcwer, access to generating
. nits er ccordination services to other electric entities.
'c)
- othing hereit shall be construed to affect the jurisdic.ics of FE?.C or any other regulatorf agency.
O
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