ML20056C991
| ML20056C991 | |
| Person / Time | |
|---|---|
| Site: | River Bend  |
| Issue date: | 07/22/1993 |
| From: | Odonnell E DEWEY BALLANTINE, OCCIDENTAL CHEMICAL CORP. |
| To: | Grant G Office of Nuclear Reactor Regulation |
| References | |
| NUDOCS 9308020034 | |
| Download: ML20056C991 (2) | |
Text
.
DEWEY BALLANTINE 1775 PENNSYLVANLA AVENLT,ME
- AS11INGTON 110.20006-4605 TELLPIIONE 202 862-1000 FACSIMILE 202 862 1093 July 22, 1993 Hand Delivered Geoffrey Grant Acting Chief Inspection and Licensing Policy Branch Program Management, Policy Development and Analysis Staff Nuclear Regulatory Commission Washington, D.C.
20555 Re: Docket No. 50-458, Gulf States Utilities Company; Proposed Transfer of Ownership of River Bend Station From Gulf States Utilities Company to Enterav Corporation
Dear Mr. Grant:
The purpose of this letter is to provide a response on behalf of Occidental Chemical Corporation ("OCC") to the questions raised in your letter of July 7, 1993 concerning OCC's activities in the electric bulk power market.
1.
OCC currently participates in the bulk power market in a number of ways.
OCC owns and/or operates electric generation units which are qualifying cogeneration facilities
("QFs") under the Public Utility Regulatory Policies Act-of 1978
("PURPA"), and which sell the equivalent of several hundred MW of power annually in the aggregate to Houston Lighting & Power Co.
("HL&P"), Central Power & Light Co., and Florida Power Corp.
OCC has competed directly and actively with other wholesale power suppliers by reason of such QF sales.
OCC has the ability to install its own generation for the purpose of meeting internal plant power requirements and/or for wholesale sales.
This provides important potential competition vis-a-vis utility power suppliers.
OCC is also involved in and affected by regional bulk power markets by way of " buy-through" power purchasing arrangements, whereby the franchised utility supplier purchases power on its customer's behalf from third-party utility suppliers for resale at the cost charged by the third-party supplier plus a mark-up.
In addition, OCC's retail power rates are determined
~
9308020034' 450722 9
PDR-ADOCK 05000458 h;f M
PDR g3 ll})
with reference in part to the cost of available wholesale economy power to its native load utility.
Revenues from off-system sales by its native load supplier and the cost to its native load supplier of off-system purchases are passed through to retail customers, including OCC.
2.
OCC currently does not compete directly with either Gulf States Utilities Company ("GSU") or Entergy Corporation
("Entergy") for wholesale power sales.
However, OCC may possibly compete against GSU and/or Entergy upon expiration of the present contract with HL&P at the end of this year.
Under the current agreement, approximately 225 MW of capacity and associated energy is sold to HL&P.
If the sale to HL&P does not continue, OCC may seek to market this power to other utilities, including utilities with whom GSU and Entergy engage in sales of energy and capacity.
In addition, as noted above, OCC might in the future opt to build additional generation for sale at wholesale at its plants in and near the GSU/Entergy franchise areas.
It currently has 5 plants in the GSU/Entergy franchise area, plus an additional 13 plants outside of this franchise area in Texas and in the neighboring states of Alabama and Tennessee.
It should also be noted that in the Entergy-GSU merger proceeding before the Federal Energy Regulatory Commission
("FERC") (Docket Nos. EC92-21-000 and ER92-806-000), the Presiding Administrative Taw Judge dOnicd CCC personnel access to certain Entergy and GSU discovery documents upon finding that OCC is a potential wholesale competitor of Entergy and GSU.
(See Transcript of Conference, March 4, 1993, at pp. 42-60).
i We trust that this information assists in your review
]
process.
Please do not hesitate to contact us with any questions you may have concerning the above.
I Sincerely,
[
P 7_-, d
/ O Earle H. O'Donnell Judith A.
Center Kathleen A.
Foudy Attornevs For Occidental Chemical Corooration i
i
).
a