ML20039G891

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Informs That No Significant Changes in Licensee Activities Have Occurred That Would Require OL Antitrust Review
ML20039G891
Person / Time
Site: Shoreham File:Long Island Lighting Company icon.png
Issue date: 10/28/1976
From: Toalston A
NRC
To: Rutberg J
NRC OFFICE OF THE EXECUTIVE LEGAL DIRECTOR (OELD)
Shared Package
ML20039G887 List:
References
ISSUANCES-A, NUDOCS 8201190266
Download: ML20039G891 (29)


Text

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APPENDIX "A" October 28, 1976 Docket No. 50-322A PCMORANDUP. TO: Joseph Rutberg, Director end Chief Counsel Antitrust Division, OELD FROM:

Argil L. Toalston, Chief, Power Supply Analysis Section Antitrust

t. Indemnity Group SUDJECT:

SHOREHAM NUCLEAR POWER STATION - UNIT 1 DOCKET NO. 50-322A Section 105c(2), of the Atomic Energy Act of 1954, as amended, provides for antitrust review of an application for an operating license if the Commission determines such review is advisable on the ground that significant changes in the licensee's activities or proposed a xivities have occurred subsequent to the previous review in connection with the 2

Q construction permit.

On August 4,1971, the Attorney General advised the Atomic Energy Com:uission that the activities proposed under the l

i license applied for by Long Island Lighting Company would not create or maintain a situation inconsistent with the j

antitrust laws.

J uo petitions for leave to intervene or requests for hearing on the antitrust aspects of the application were received.

The Construction Permit (CPPR-95) was issued on April 14, 1973.

No allegations or complaints have been made against the applicant since the antitrust review of the construction permit" application.

Also, no antitrust problems with respect 4

to the applicant have been called to our attention by the Justice Department during subsequent antitrust reviews of other nuclear pht applications including Jamesport Unit 2.

On January 22, 1975, the following was published in the O

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APPENDIX "A" i,

' Federal Register, Volume 40, No.15, concerning the Attorney General's advico as to the Long Island Lighting Company's construction permit application for Jamesport Unit 2:

"On August 4,1971, we rendered antitrust advice with respect to LILCO's application to construct its I

Shorcham nuclear power station, Unit 1.

It was con-cluded that the activitics under the license would not f

create or maintain a situation inconsistent with the 1

antitrust laws.

No intervening circumstances have l

l appeared to warrant a reversal of that conclusion."

In accordance with Regulatory Guide 9.3, information dated Jenuary 12, 1976, was received from the Long Island Lighting Company.

At the time of the 9.3 submissions LILCo was engaged in negotiations with the New York State Electric and Gas Corporation (NYSEG) for sale of a portion of the Jamesport Generating Station Nuclear Units 1 and 2.

An agreement was reached between both parties of February 2,1972 whereby UYSEG agreed to purchase a 50% interest in the Jamesport Units 1 and 2 if and when constructed.

C' Several differences were noted to LILCO's generating resources, peak load forecast, and reserve capacity since the construction permit state.

These differences are due to the following:

1.

Change in load forecast.

2.

Delays in the service date of Shoreham Unit'1 necessitating the construction of Northport 44 and the advancement of 1 st.allations of gas turbines to 1974 and 1975.

3.

Dorating of exisitng generation units due to different testing methods of unit capacity.

Other changes that have occurred since the construction permit time frame are the following:

1.

The New York Power Pool (NYPP), in which LILCO is and has been a member, has implemented their scheduled changes in their Generation Reserve Policy.

F.ffective the summer of 1975 and thereaf ter, the NYPP has increased its reserve requirements O

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Appendix "A"

' 1 1

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V of peak load to let of it's peak load.

froa 14%

Therefore, LILCO is obligated to carry rccerve capacity equal to 18% of it's peak load.

Rate' schedules have changed but they are essentially

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2.

of the same design as sub: itted previously on 1971 in Amendment 12 to the Application.

April 14, The above changes to LILCO's operating status do not suggest any antitrust concerns.

An incuiry was made to a representative of the Federal Fower to determine if the FPC has received any No allegations (FPC)

Co=: ission complaints against LILCO in che past few years.concerning anticompetit it is our conclusion that no significant changes in the licensee's activities have occurred that would require

Thus, I

an Operating License antitrust review.

rp') x,L.Toalst" Argil L. Toalston, Chief Powar Supply Analysis Section Antitrust & Indemnity Group Nuclear Reactor Regulation j

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t eDistribution:'

JSaltzman AToalston Readin W"elinsky'4 AIG Files Central Files AIG Reading t) i I

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h.RR:AIG URR:AIG NRR:AIG Melinsky/cd AToAlston JSaltzman 10/23/76 10/28/76 10/28/76

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Appendix "B" STATE OF NEW YORK OPERATING ELECTRIC SYSTEMS Investor Owned Systems Central Hudson Gas and Electric Corp.

l Consolidated Edison Co.

Fishers Island Electric Corp.

Long Island Lighting Co.

New York State Electric and Gas Corp.

Niagara Mohawk Power Corp.

Orange and Rockland Utilities, Inc.

Peach Lake Utilities, Inc.

l Rochester Gas and Electric Corp.

l Municipal Systems Akron Plattsburg Andover Richmondville Angelics Rockville Centre Arcade Rouses Point Bath Salamanca Bergen Sherburne l

Boonville Sherrill Brocton Silver Springs Churchville Skaneateles Endicott Solvay Fl'irport Spencerport Frankfort Springville Freeport Theresa '

Green Island Tupper Greene Watertown Greenport Watkins Glen l

Groton Wellsville Hamil ton Wes tvield Holley Ilion Jamestown Lake Placid tittle Valley Marathon Mayville Mohawk Penn Yan i

Philadelphia

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App:ndix "B"

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2-rative Systems Rural Electric Coope Delaware CountyOneida Madison Ostego Steuben Government y

U.S. Military Academthe State Power Authority of o

Appendix "C" TABLE 2-1

SUMMARY

OF MAJOR ADDITIONS LONG RANGE 1981-1996 BASE PLAN Capabil;.y -MW in Type Projected Serv.

Cool.

Heat Rate Station and Unit Company Location Type Fuel Summer Wi. iter Date System (BTU /KWHi 4

Mitchel Gardens 1 & 2 LILCO Hempstead ST SW 32 32 5/81 C

2 10417 Shoreham 1 LILCO Shoreham SN N

813 813 12/82 A

Somerset NYSEG Miegers Co.

ST C

625 625 11/84 A

10000 N.na Mile Pt. 2 1

Scraba SN N

1080 1090 11/86 8

10300 700 Fossil PASNY S$aten is.

ST C. SW 700 700 5/86 8

9650 Praitsville PASNY Prettsville PS 1000 10C0 5/87 2

jogoo Jamesport 1 1

Jamesport ST C

800 800 11/91 A

Lake Erie 1 NMPC Pomfret ST C

850 850 11/91 B

9500 NMPC New Hydro NMPC Variou.

HY 203 203 3

Y PASNY New Hydro PASNY Various HY 70 70 3

HY 24 24 3

NYSEG New Hydro NYSEG, Various H qh Falls CilG&E High Falls HY 2

2 12/82 Solid Waste PASNY Various ST SW 190 190 3

Solid Waste CE Peeliskill ST SW 40 40 5/84 T

Type of Unit Type of Fuel Type of Cooling System SN

- Steam Turbine (Nuclear)

S

- Heavy Oil A

-,Once Theough Cooling ST

- Steam Turbine (Non-Nuclear)

C

- Coal B

- Natural Draf t Cooling Tower GT

- Gas Turbine (No.4,5,6. Oil, Bunker & Crude)

C

- Mechanical Draf t Cooling Tower HY - Conventional Hydro N

- Nuclear PS

- Pumped Stora0e SW - Solid Waste 3

Footnotes Expansion is planned at numerous sites during the 15-year plan-mng period. See Tzble 2 3.

4This unit has been in operational testing since 12/78. It has not yet iSee Table 2-1 A.

been accepted for commercial operation. The plant was closed com-2The regulations under Section 306 of the Federal Water Pollut;on pletely in 3/80 following a series of labor disturbances and a dispute Control Act Amendments (Standard of Pe,rformance Section) re-between the Town of Hempstead and the owner operator. At quire closed <:ycle cooling systems for steanfelectric plants. A vari-present the plant will not re-open until the U.S.E.P.A. establishes a anCe pursuant to Section 316-a of the Federal Water Pollution Act uniform standard to dvermins appropriate levels of dioxin emes-has or will tw sought f or this unit.

sions and the plsns is snowri in compliance.

  • From 1981 Report of Member Electric Systems of the New York Power Pool.

Appendix "D" U

TABLE 6 FACTORS AFFECTING COAL CONVERSION OF GENERATING UNITS INDICATED BY NYPP Ma.fification ftequired Coal Ash 2

Earliest Remaining llendling llandling Boiler Conversion Life After Current Change in to Convert Earliest Conversion Cost Cost to Conmt IJnit Precipitator Equipment Equipment Modification Date Conversion Rating MW Rating MW (1980 $/kW)

Year $/kW y

y Atthur Kell 2

Yes Yes Yes No Apr.1984 20 335 0

183 244 Asthur Kill 3

Yes Yes Yes No Aug.1983 31 491 0

157 200 Ilavenswood 3

Yes F3 Yes No Aug.1982 28 928 0

45 52 Invett 4

Yes Yes Yes No May 1983 35 197

-6 227 293 invett 5

Yes Yes Yes No Dec.1982 35 202

-6 173 225 lbnskammer 3

Yes Yes Yes Yes Feb.1986 18 126

+11 149 24G.5 lbnskammer 4

Yes Yes Yes Yes Feb.1986 26 226

+5 149 246.5 Alteny 1

Ye-Yes Yes No Nov.1984 12 100

+5 145/388 201/528 Albany 2

4 Yes Yes No Nov.1984 12-100

' ~+5 145/381 201/528 3

3 Albany 3

Yes Yes Yes No Nov.1984 13 100

+5 145/381 201/528 Niany 4

Yes Yes Yes No Nov.1984 14 100 45 145/388 201/528 Pt. Jef fersoa 3

Yes Yes Yes Yes Aug.1987 IG 190

-1 314 447 Pt. Jef f er son 4

Yes Yes Yes Yes Aug.1987 18 190

-1 314 447 E.F. Barrett I

Yes Yes Yes -

Yes Oct.1987 14 190

-1 323 476 E.F. Eberett 2

Yes Yes Yes Yes Oct.1987 21 190

-1 323 4 7G TOTAL 3665 I

Except as indicated in the case of Albany 1-4 units scrubber costs are not included.

2 Dased on a 45 year unit life, except for the lovett units.

Cnst without scrubbers / cost with scrubbers i

From 1981 Report of Member Electr.ic Systems of the New York Power Pool.

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Appendix "E" l

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l LONG ISLAND LIGHTING COMPANY SHOREHAM NUCLEAR POWER STATION - UNIT 1 l

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i INFORMATION FOR ANTITP.UST REVIEW OF i

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OPERATING LICENSE APPLICATION

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September 30, 1980 l

Appendix "E" d

Information for antitrust review of operating license application in accordance with Regulatory Guide 9.3, paragraph B is presented below.

REQUEST 3.1-a Anticipated excess or shortage in generating capacity resources not expected at the construction permit stage.

Reasons for the excess or shortage along with data on how the excess will be allocated, distributed or otherwise utilized or how the shortage will be obtained.

RESPONSE B.1-a LILCO's current load and capacity schedule is included as Attachment A.

This attachment is a copy of Exnibit 11 of the Long Range Electric Plan submitted to the New York State Energy Office on April 1, 1980 by the member systems of the New York Power Pool.

You will note that the exhibit has been modified to reflect the latest LILCO revision to the Shoreham commercial operation date to November 1982.

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Excess reserves are given in both MW and percent at the bottom of each Table corresponding to both the summer and winter peaks.

V M-There are no firm contracts for sale of this excess capability at this time.

Changes in the reserve capabilities from that submitted in January 1976 are due to the following:

1.

Change in load forecast.

2.

Slippage in the Shoreham plant service date.

3.

Derating of existing units to reflect the latest demonstrated capability tests.

Note that the attached Tables include a 400 MW coal plant addition in 1989. This is based on a certificate of environmental capabilityI and public need for an 800 ?G1 coal fired electric generating facilitf on Long Island, granted on September 8, 1980 to LILCO and New York State Electric and Gas Corporation (NYSEG) by the New York State Board on Electric Generation Siting and the Environment.

This recommendation was in exception to LILCO and NYSEG's favored plan to build two 1150 MN nuclear units at Jamesport to be shared equally by both companies.

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REQUEST B.1-b dew power pools or coordinating groups or changes in structure,

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activities, policies, practices, or membership of power pools or coordinating groups in which licensee was, is, or will be-a participant.

RESPONSE B.1-b There are no-changes from previously listed power pools or co-ordinating groups, etc. with the exception of the following:

The New York Power Pool (in which LILCO is and has been a member).

Generating Reserve Policy previously set at 14% of peak load was changed to 18% effective as of the summer of 1975 and thereafter.

As a member of the NYPP, LILCO is now obligated to maintain a capability 18% greater than the yearly peak load.

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,e REQUEST B.1-c Changes in transmission with respect to (1)' the nuclear plant, (2) interconnections, or (3) connections to wholesale customers.

RESPONSE B.1-c There are no substantial changes in transmission occasioned by the nuclear plant since the PSAR.

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In 1978', the interconnections to the LILCO system were increased by the addition of:

1.

345kV cable to Con Ed (Dunwoodie - Shore Road) 2.

138kV cable to Con Ed (Jamaica - Lake Success) 3.

138kV cable to Con Ed (Jamaica - Valley Stream)

In 1980, a pe_rmanent 13kV interconnection was completed between LILCO and the Villag'e of Greenport.

1 REQUEST B.1-d i

Changes in the ownership or contractual allocation of the output of the nuclear facility.

Reasons and basis for such changes should be included.

l RESPONSE B.1-d At the present date there are no changes in ownership or contractual allocation of the output of the Shoreham Nuclear Power Station.

On February 2, 1976, a memorandum of understanding was signed by LILCO l

and the New York State Electric and Gas Corporation (NYSEG) providing NYSE&G's participation in 50% of the Jamesport units.

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Appendix "E" r

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REQUEST 3.1-e Changes in design provisions, or conditions of rate schedules and reasons for such change.

Rate increases or decreases are j

i no't necessary.

RESPONSE B.1-e There have been various changes and revisions to LILCO's contracts and rate schedules to receive and deliver power between the Company and other electric power systems.

The current status of all sucn l

agreements are provided in Attachment B.

l tREQUEST B.1-f i

List of all (1) new wholesale cus tomers, (2) transfers from one rate schedule to another, including copies of schedules not previously furnished, (3) changes in licensee's service area, and (4) licensee's acquisitions or mergers.

RESPONSE B.1-f l [^

Although an interconnection between LILCO and the Village of i

Greenport was completed, they are not a firm wholesale customer of LILCO's.

Through signed agreements, they are a full require-ments customer of the Power Authority of the State of New York l

l and LILCO wheels power for them.

There are no other changes from that which was previously submitted on April 14, 1971 in Amendment 12 to the License Application.

REQUEST 3.1-g List of those generating capacity additions committed for operation after the nuclear facility, including ownership rights or power output allocations.

RESPONSE B.1-g 1.

LILCO has acquired from the Niagra Mohawk Power Corporation 18% ownership (194 MW) of the Nine Mile Point No. 2 Nuclear Unit sche,,duled-for service in November 1986.

2.

Based upon a certificate issued by the New York State Board on Electric Generation Siting and the Environment on September 8, 1980, LILCO's present generation expansion schedule shows an equal (50%) share of ownership-in an 800 MW coal plant to be built at Jamesport for service in 1989.

The other 50% share will be owned by New York State Electric and Gas Corporaticn.

Appendix "E"

'1 REQUEST B.1-h Summary of requests or indications of interest by other electric power wholesale or retail distributiona, and licensee's response, for any type of electric service or cooperative venture or study.

RESPONSE B.1-h In 1979, LILCO and the Power Authority of the State of New York (PASNY) signed a transmission agreement for wheeling electric-power and energy to three Long Island municipals.

PASNY provides full power requirements for the Village of Greenport; and provides partial requirements for the Villages of Freeport and Rockville Centre.

A copy of this wheeling agreement is included in Attachment C.

REQUEST B.2 Licensecs whose construction permits include conditions pertaining to antitrust aspects should list and discuss those actions or policies which have been implemente'd in accordance with such conditions.

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RESPONSE B.2 There are no conditions pertaining to antitrust aspects.

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APPENDhX"E" TABLE 1 f.0t!G ISLAND !.IGitTlHG C0!!PANY SUM!!ER ATTACllMENT A

}AXIMUM INSTAI. LED MEGAWATTS NET CAP.

1980 1981 1982 1983 1984 1985 1986 1987 1988 1989 1990 1991 1992 1993 1994 1995 Dil Fired 2672 2b72 2672 2672 L._22923 2292 2292 2292 2292 2292 2292 2292 2292 2292 2244 2244 t 7 0_ '_

370 370 370 370 770 770 770 770 770 770 770 3

nal Fired 0

0 0

0

)ther 32 32 32 32 32 32 32 32 32 32 32 32 32 32 32 32

om.Tu rbs.

1037 1037 1037 1037 1037 1037 1037 1037 1037 1037 1037 1037 1037 1037 1037 1037 elesels 12 12 12

_12 12 12 12 12 12 12 12 12 12 12 12 12 luclear 0

0 0

(820 3 820 820 820 1014 1014 1014 1014 1014 1014 1014 1014 1014 lydro(Con.)

0 0

0 0

0 0

0 0

0 0

0 0

0 0

0 0

]yd ro (PSII) 0 0

0 0

0 0

0 0

0 0

0 0

0 0

0 0

'OTAL INST.

3753 3753 3753 4573 4563 4563 4563 4757 4757 5157 5157 5157 5157 3157 5109 5109 let Trans.*

p0 55 49 35 27 19 9

0 0

0 0,

0 0

0 0

0 FOTAL CAP.

3813 3808 3807 4608 4590 4582 4572 4757 4757 5157 5157 5157 5157 5157 5109 5109

ummer Peak 2965 3005 3050 3100 3155

'3225 3310 3405 3480 3585 3675 3755 3825 3885 3940 3990

'eq. Cap.

3499 3546 3599 3658 3723 3805 3906 4018 4106 4230 4336 4431 4513 4584 4649 4708

.xc./Def.

314 262 203 950 867 777 666 739 651 927 821 726 644 573 460 401

xc. / De f.%

9.0 7.4 5.6 26.0 23.3 20.4 17.1 18.4 15.9 21.9 18.9 16.4 14.3 12.5 9.9 8.5 l

k in accordance with New York Power Pool Agreement Section 1.04:

Assumes continnation of existing PASNY contracts.

For planning purposes only.

NOTE:

The generation mix of coal and oil capacity reflects the l conversion of certain c: tsting oil units from oil to coal.

Changes in the generation mix are reflected in the capability period following the completion.of the conversion.

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Appendix' "E"

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l TABLE 2 WIVffER

_AIIACIRIEHI_A.

i LONG ISI.AND LIGHTIV1G COMPANY ftAXIMUti INSTALL.ED MEGAWATTS NET CAP.

1980 1981 1982 1983 1984 1985 1986 1987 1988 1989 1990 1991 1992 1993 1994 1995

'il Fired 2672 2672 2672 2672 2292 2292 2292 2292 2292 2292 2292 2292 2292 2244 2244 2196

oal Fired 0

0 0

0 370 370 370 370 370 770 770 770 770 770 770 770

)ther 32 32 32 32 32 32 32 32 32 32 32 32 32 32 32 32 Com.Turbs.

1313 1313 1313 1313 1313 1313 1313 1313 1313 1313 1313 1313 1313 1313 1313 1313 Diesels 12 12 12 12 12 12 12 12 12.

12 12 12 12 12 12 12 Nuclear 0

0 820 820 820 820 1016 1016 1016 1016 1016 1016 1016 1016 1016 1016 Jiyd ro (Con. )

0 0

0 0

0 0

0 0

0 0

0 0

0 0

0 0

Elyd ro(PSil) 0 0

0 0

0 0

0 0

0 0

0 0

0 0

0 0

00TAL If6ST, 4029 4029 4849 4849 4839 4839 5035 5035 5035 5435 5435 5435 5435 5387 5387 5339 Trans.*

23 21 15 12 8

4 0

0 0

0 0

0 0

0 0

0 fHet

' TOTAL CAP.

4052 4050 4864 4861 4847 4843 5035 5035 5035 5435 5435 5435 5435 5387 5387 5339 Winter-Peak 2410 2450 2500 2550 2600

'2650 2740

.2640 2940 3030 3140 3250 3370 3490 3610 3740 Req. Cap.

3499 3546 3599 3658 3723 3805 3906 4018 4106 4230 4336 4431 4513 4584 4649-4708 Exc./Def.

553 504 1265 1203 1124 1038 1129 1017 929 1205 1099 1004 922 803 738 631 Exc./Def.%

15.8 14.2 35.1 32.9 30.2 27.3 28.9 25.3 22.6 28.5 25.3 22.7 20.4 17.5 15.9 13.4 l

lc In accordance with New York Power 12o01 Agreement Section 1.04:

Assumes continuation of existing PASNY contracts.

For planning purposes only.

NOTE: The generation mix of coal and oil capacity reflects the conversion of certain existing,oll units from oil to coal.

Changes in the generation mix are reflected in the capability period following the completion of the conversion.

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N Appendix "E" LILCO's Filed Power Contracts FERC Certificate Rate or Rate

  • of Other Concurrence Schedule Concurrence Emergency Power Coordinatit Other Parties Filed by Number Date Deliver Receive Ar ranaemen t New York Power Pool (3)

LILCO 21 7/11/77 X

X X (1)

Village of Freeport LILCO 15 9/10/79 X

X X(2)

Supp. 9, 10

& 11 Village of Rockville LILCO 29 7/13/79 X

X Centre Supp. 21 &

22 (1)

Deliver and receive supplemental and economy power.

(2)

Deliver and receive on and off peak firm power.

Deliver off-peak power in excess of firm power purchased by Freeport.

(3)

Other participating members are:

Central Iludson Gas and Electric Corporation Consolidated Edison Company of New York, Inc.

New York State Electric and Gas Corporation Niagara Mohawk Power Corporation Orange and Rockland Utilitics, Inc.

Power Authority of the State of New York Rochester Gas and Electric Corporation G

Appendix "E" LILCO's Other Power Contracts Contract or Agreement Type of Other Parties Date Contract Reference Power Authority of 8/25/75 Firm Capacity Attachment B-1 and Energy the State of 11ew York The connecticut Light

'6/1/75 Monthly Capacity Attachment B-2 and Energy Exchange and-Power Company The !!artford Electric I.ight Company The Connecticut Light 6/9/75 Monthly Capacity Attachment'B-3 and Energy Exchange and Power Company The flartford Electric Light Company Western Massachusetts Elect.ric Company The Connecticut Light 7/1/76 Weekly Capacity and Attachment B-4 Energy Exchange and Power Company The llartford Electric Light company Orange and Rockland 4/27/76 Capacity and Energy Attachment B-5 Exchange Utilities, Inc.

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Appendix "E" This Agrecmcn.t is made and dated as of January 2, 1979, between the Power Auuhority of the State of ?!ca York (PASI!Y) and Long Island Lightir c Company (LILCO).

WilEREAS, PASIiY wishes to sell firm electric power and energy to the Long Island MunicJpalities of Freeport, Greenport and Rockville Centre (the Municipalities); and WHEREAS PASNY also wishes to sell interruptible 3

electric energy to the Municipalities; and WHEREAS, PASNY wishes to have LILCO transmit such power and energy over LILCO's transmission lines; and WHEREAS, LILCO is willing to provide such trans-mission service; i

- NOW THEREFORE, in consideration of the mutual obligations and undertakings set forth herein, it is agreed as follows:

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d 1.

ELECTRIC TRANSMISSION SERVICE TO BE BENDERED 1.1 In general, LILCO's transmission obligations fall into

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a priority structure with internal operation of LILCO's system to reliably and economically service its own customers being assigned the highest priority.

This highest priority also includes the utilization of LILCO's firm, supplemental (as defined by the most recent New York Power Pool Agreement),

I and/or emergency power purchases including both cr.isting contracts and any future contracts LILCO may enter into.

Firm transmission contracts are next in priority, starting with the oldect; LILCO's daily and hourly transactions are

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Appeadix'"E"~' R

- next; daily and honely transactions of othera are Jact.

The I.

f[','firmtransmissionservicetoberenderedbyLILCOunderthis Agreement shall be considered a firm transmission contract in,the'above priority structure.

The interruptible trans-mission service to be rendered by LILCO under this' Agreement j

shall be considered on a when, if, and as available basis; below LILCO's daily and hourly transactions in the above priority structure.

These two services shall cover the transmission of power and energy from points of intercon-nection with Consolidated Edison Company of'New York, Inc.

or, as requested by PASNY, any other electric utility to which LILCO is interconnected to the point of interconnection with any of the Municipalities.

1.2 Transmission capacity to be made available by LILCO to s

PASNY will be that amount required to transmit power to the Municipalities as scheduled by PASNY, but not more tha'n the actual capability. of LILCO's transmission system serving each Municipality as determined by LILCO.

PASNY shall

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advise LILCO by the first day of April of each year of its 1

anticipated scheduled maximum firm kilowatt delivery to each of,the Municipalities for each month through May of the l

following year, and its estimated summer and winter maximum firm kilowatt delivery and total annual firm kilowatt-hour t

delivery to each of the Municipalities for the next succeeding five year period.

LILCO will then notify PASliY within 60 days if LILCO foresces any restrictions in providing the

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necessary transmission service.

LILCO is not required hereby, without further agreement of the parties hereto, to

Appendix "E" construct or modify its transmission facilities to provide transmiacion service to the Municipalities.

13 Power and energy to be transmitted hereunder shall be that amount which PASNY makes available at LILCO's points of interconnection with other utilities.

LILCO is not required hereby to deliver power and energy to the Municipalities when power and energy is not delivered by PASNY to LILCO or when LILCO must interrupt or curtail transmission service to economically service its customers in accord with the priority designations in paragraph 1.1 above.

If the M'unicipalities desire to receive power and energy from LILCO at such times,

'LILCO shall sell and deliver such power and energy only pursuant to separate agreements between LILCO and each of i

the individual Municipalities providing for such service.

As of the date of this agreement, LILCO has entered'into separate agreements with Freeport (NY PSC Contract No. 139) and Rockville Centre (NY PSC Contract No. 96).

It is under-stood that those agreements set forth the terms and conditions under which ener'gy and power will be sold and delivered to those Municipalities when not transmitted pursuant to this Agreement.

It is also understood that unless a separate agreement is executed between LILCO and Greenpor't, LILCO will noc deliver any power,and energy to Greenport when PASNY is not delivering power and energy to LILCO or when LILCO must interrupt or curtail transmission service pursuant to paragraph 1.1.

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Appendix "E" 1:4 The actual power and energy delivered by LILCO to the Municipalities will be amounts which in LILCO's sole j udgment do not exceed the capacity of LILCO's transmission-system from the points of interconnection with oth,er utilities to the places of interconnection between LILCO and the Munici-palities' systems and in accord with the priority designations in paragraph 1.1 above.

Should LILCO be unabic to provide sufficient transmission capacity for the total scheduled delivery of power and energy under this cdntract because of outago of electric transmission facilities, or for any other reason beyond LILCO control, PASNY may request LILCO to reschedule its generating facilities so as to restore as much transmission capacity as practicable.

In this event, PASNY shall reimburse LILCO for all its incremental generation 1

and transmission costs so incurred.

Should PASNY elect not

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to request rescheduling of LILCO's generating facilities, or in the event that rescheduling does not restore sufficient transmission capacity for PASNY's total scheduled delivery of power and energy under this contract, LILCO agrees to take delivery of as much of PASNY's scheduled power and energy as LILCO can deliver to the Municipalities under such circumstances.

2.

PAYMENTS FOR THE USE OF TRANSMISSION FACILITIES 2".1 Firm Transmission Service

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2.1.1 For use of LILCO's transmission and subtransmission system for deliverics to the villages of Freeport and

Appendix "E

Rockville Centre, PASHY shall pay LILCO at the rate of one and sixteen hundredths dollars ($1.16) per kilowatt the per month of firm demand scheduled for delivery at points of interconnection between LILCO and the villages of Freeport and Rockville Centre.

2.1.2 Since the Village of Greenport will be inter-connected with a LILCO distribution station, a surcharge will be applied for use of this distribution equipment.

In addition to the $1.16 per kilowatt per month charge for use of LILCO's transmission and subtransmission system, PASMY shall pay LILCO a surcharge at the rate of fifty six hundredths dollars ($.56) per kilowatt per month of firm demand delivered to Greenport at its point of interconnection with LILCO.

2.1 3 If LILCO does not provide transmission or distri-bution capability equal to the firm power deliveries scheduled to the Municipals in any. hour, and such curtailment continues for one hour or longer, PASNY shall receive a credit against the transmission charge and surcharge, as applicable, for that billing period, the amount of which shall be a fraction of the total transmis'sion charge and surcharge, as applicable, for the billing period determined by the ratio of (1) the sum of the hours in which the rate of delivery was reduced to zero plus the total of the fractional hours of partially reduced service (.the fraction.#or each hour being the ratio of the. reduction of t ue rate of I

Appendix "E" a

delivery below that scheduled for delivery to the Municipals to the scheduled demand) to (ii) the number of hours in the billing period.

PASHY chall not receive any credits for service curta11ments caused by PASNY or any other. companies providing transmission service for PASNY.

2.2 Interruptible Transmission Service 2.2.1 PASNY shall pay LILCO at the rate of one and fifty nine hundredths dollars ($1.59) per megawatt-hour of interruptible energy scheduled for delivery to the Municipalities over LILCO's facilities under this Agreement.

This rate will apply to the Villages of Freeport, and Rockville Centre for use of LILCO's trans-mission and subtransmission system.

Interruptible energy shall not be delivered to Greenport.

23 LILCO shall recalculate the foregoing charges annually effective June 1, and shall submit any resulting revisions in rates to PASNY.

If PASNY, through its Director of Power Operations, does not indicate its acceptance of such revised rates within 30 days from the date of such submittal or the parties cannot agree on alternate rates within that period of time, such revised rates shall be filed by LILCO, on notice to PASNY, with the Federal Ener6y Regulatory Commission (FERC) for approval, and LILCO may charge such rates subj ect e

6

Appendix "E"

_7_

/

to any suspension period established by FERC and subject to refund, with interest as may be determined by FERC, to the extent that such revised rates may be found by FERC to be excessive.

l 2.4 Bills for the charges for services supplied in accordance with this Agreement during each month will be rendered by l

l the tenth day of the following month and will be payable on l

the first banking day of the month immediately succeeding l

j the month in which they are rendered.

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25 If PASNY fails to pay any bill when due, PASNY shall i

l/

pey interest on the principal amount unpaid equal to the i-rate specified in the most recent revision of LILCO's Schedule for Electric Service, P.S.C. No. 7-Electricity, Leaf No. 19 3

COMPENSATION FOR LOSSES 31 PASNY shall compensate LILCO for any increase in trans-mission losses incurred on the LILCO system as a result of transmission of e'nergy to the Municipalities hereunder.

Transmission losses shall be determined by LILCO, and verified by PASNY, based on an estimate of average conditions.

l l

l 4.

POWER FACTOR LILCO requires the normal power factor at the pointo of delivery at each of the Municipalities to be no less than 90 percent lagging.

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Appendix "E"

1.,+
  • i 5

METERIt!G The amount of power transmitted hereunder shall be metered at the points of interconnection with the Municinal-l ities.

6.

TERM OF AGREEMENT L

l This Agreement shall become effective upon the date of its execution by the parties hereto and shall continue in effect thereafter until termination upon two (2) years l

prior notice in writing of either party's intention to do so.

-7 TERMI!!ATIO!! OF PRIOR AGREEME!!T The Transmission Agreement between PASNY and LILCO dated June 18, 1976, is hereby cancelled as of the effective date of this agreement.

8.

OTHER PROVISIOllS 8.1 Force Maj eure Neither party shall be considered to be in default in respect to any obligation hereunder, if prevented from fulfilling such obligation by reason of force majeure, the term force majeure being deemed for the purpose of this contract to l

l mean any cause beyond the control of the party affected, including but not limited to, failure of facilities, flood, 3 )

Appendix "E"

' earthquake, storm, lightning, fire, cpidemic, war, strikes, riot, civil disturbances, sabotage'^and rostraint by court or pub.11c' authority, which by exercise of duc diligence and foresight such party could not reasonably have been expected to avoid.

Either party rendered unable to fulfill any obligation by reason of force majeure shall exercise due diligence to' remove such inability.

8.2 Waivers Any waiver at any time by either party of its rights with respect to a default or any other matter arising in connection with this contract shall be in writing and shall not be deemed to be a waiver with respect to any subsequent default

/

V.

or matter.

8.3 Notices Except where otherwise herein specifically provided, any notice, demand or request required or authorized by this contract shall be deemed properly.given if mailed by first class mail, postage prepaid, to PASNY at the address of PASNY shown on the signature page. hereof, and to the off(cial signing for LILCO at the address of LILCO shown on the signature page hereof.

The designation of the person to be notified or the address of such person may be changed at any time by similar notice.

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l App end i x,," E" IN WI'$ NESS UllEREOF>

8 t)3e parties have caused thic

Agreement to be signed by their recpective authorized orricer-and their respective seals to be affixed hereto as of the dat$e first above Written.

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