ML20049K022
| ML20049K022 | |
| Person / Time | |
|---|---|
| Site: | Trojan File:Portland General Electric icon.png |
| Issue date: | 03/06/1978 |
| From: | Hittle L ENERGY, DEPT. OF |
| To: | Saltzman J Office of Nuclear Reactor Regulation |
| Shared Package | |
| ML20049K010 | List: |
| References | |
| NUDOCS 8203290326 | |
| Download: ML20049K022 (2) | |
Text
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r AP June 3, 1980 Mr. Jerme Sal trrnen Antitrust & Inder:nity Group Office of Nuclear Reactor Regulation U.S. !!ccle r Reguistory Coc=sission Washington, D.C.
20555 Deer lir. Salten.sa:
At the request of the Eugene Water & Elec tric Board (E*mTB). we have revieved LPA's obligations under certain agreements with Eugene es such obligstions relate to retrospective preniuos under the Price Anderson Act (Pub. L.94-197 ).-
LPA is obligsted to pay retrospective prenives on behalf of the City of Eugene pursuant to the tems of the Net-Eilling Agreements (designated as Contract Nos. 14-03-09181 through 09194).
Under the section entitled " Payment by the Adminictrator" (either section 7 or 8 of such agreements) EPA is obligated to pay a'.1 project annual cos ts of the City of Eugene through net-billing cre' its or ca sh payments.
d Included in project costa nre ell costs included in the Annual Budget for the project adopted by Eugene eich year. Eugene must adopt an Annual Budget which ankes provisions f o-all of Eugene's project ecsts resulting l
from the ounership, operatim, und naIntenance of the prcject.
If an L
extraordinary item not budgeted occurs during the year, Eugene is obligated to adopt an a= ended budget ubich then incresses EPA's payment I
obli ation to Eugene for the remainder.of the year. Therefore, it is our E
opinion that Bonneville is obligated to pay costs of operating, including costs 'of insurance such as that insurance obligation provided through the price Anderson Act.
If in fact the policy which the Euclear Eegulatory Coornission issues to the proj ect owners, includinE Eugene, requires retrospective premiums, these premiuns would be operating costs just as the ordinary preniums required under the Price Andersen Act are.
l Currently 3PA is paying as part of the Annual Budget the ordinary Price Anderson pre.iums en a routine basis.
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In accordance with a previous request of the E'JEB, we prepared a letter dated August 5,1977, which stated our op? oion (still valid) that the retrospective prersiums were a Bonneville obligation and therefore act the guarantee requircoents under Alternative 5 provided in a letter dated June 15,1977, to the Eugene Water & Electric Board. A copy of this letter was fonarded to your agency by our letter of Itarch 6,1978.
If ve can furnish further information related to our obli ation under the E
Net-Billing Agreements, please let us kncv.
Sin. rely,
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en Larry C.
'ittle
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Assistant Cencral Counsel Bonneville Power Administration bec Rockne Gill l
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>brch 6,1978
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Mr. Jerome Ssitzcan Antitrust & Indemnity Croup Office of Nuclear Reactor Regulation U. S. Nuclear Regulatory Cccuission Washington; D.C.
20555
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Dear O. Saltzman:
At the rigest of Rockne Gill, counsel to the Eugene Water &
Electric Board, we have reviewed BPA's obligations under certain
, agreements with Eugene _ as such obligations relate to retrospective premiums under the Price Anderson Act (Pub. L. No.94-197). BPA 1
is obligated to pay retrospective premiums on behalf of the City of Eugene pursuans to the terms of the Net-Billing Agree =ents
(
1 executed by Bonneville, the City of Eugene, and 13 other public agency participants in the Trojan Nucicar Project Net-Bil. ling s
Agrecaental(designated as Contract Nos. 14-03-09181 through i
09194.
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Under thi section entitled " Payment by the Administrator" (either section 7 or 8 of such agreements) BPA is obligated to pay all project annual costs of the City of Eugene through net-billing credits or cash payments. Included in project costs are all costs included in the Annual Budget for the project adopted by Eugene cach year. Eugene erst adopt an Annual Budget which makes pro-visions for all of Eusene's project costs resulting from the ownership, operation,and maintenance of the project.
If an extraordinary item not budgeted occurs during the year, Eugene is obligated to adopt an amended budget which then increases BPA's paycent obligation to Eugene for the re= minder of the year.
Therefore, it is our opinion that Bonneville is obligated to pay costs of operating including costs of insurance such as that insurance obligation' provided through the Price Anderson Act. If in fact the policy which the Nucica-Regulate y Cocnission issues to the project osners, including Eugene, requires retrospective premiums, these premiums would bee operating costs just as the O
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2 Ltr. to Jerome Saltzcan, U.S. Nuclear Regulatory Cocnission, Washington, D.C., Subj : BFA's Obligations Under Certain Agreements with Eugene Water & Electric ordinary premiums required under the Price Anderson Act are.
Currently BPA is paying as part of the Annual Budget the ordinary Price Anderson preniums on a routine basis.
In accordance with the request of the Eugene Water & Electric Board, we prepared a letter dated August 5,1977, which stated our opinion that the retrospective premfuna were a Bonneville obligation and therefore met the Euarantee requirements under Alternative 5 provided in a letter dated June 15, 1977, to the Eugene Water & E1cetric Board. I a:s enclosing a copy of that letter without the enclosures for your inforcation.
If we can furnish further information related to our obligation under the Net-Billing Agree:ents, please let us know.
Sincerely, Larry G. Hittle Assistant Cencral Counsel ILHittic:las bec:
Richard Quigley - WPPSS R. Foleen - A R. Nyland - P T. Wagenhoffer - AC l
Durocher/Cjelde - P H. Spigal - P D. Hansen - S-2 R. Ratclif fe - AP
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