ML20062F920

Petition by Central Elec Pwr Coop for a Finding That Significant Changes in Licensee Sceg'S Activities Have Occurred Subsequent to Previous Antitrust Review.Also Seeks New Antitrust Review & Hearing.Cert of Svc Encl

ML20062F920
Person / Time
Site:	Summer
Issue date:	12/06/1978
From:	Brand W, Roberts C DIAL, JENNINGS, WINDHAM, THOMAS & ROBERTS, PEARCE & BRAND
To:
References
NUDOCS 7812210374
Download: ML20062F920 (6)

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go-395 M

. NRC PUBLIC DOCUMENT ROOM

, m UNITED STATES OF AMERICA NUCLEAR REGULATORY COMMISSION g 7 ,g 69

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In the batter of ) #

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South Carolina Electric & ) g 4 Gas Company )

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and ) Docket No. 50-395A

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South Carolina Public )

Service Authority )

(Virgil C. Summer Nuclear )

Station Unit No. 1) ) ,L yf(/lfn Petition for a Finding of Significant e- - i 0 Chense end Re9ueet for Aneieruse Hearing on Operating License n. - -

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Central Electric Power Cooperative, Inc. (a South; ] -

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Carolina corporation), pursuant to Section 105(c)(2)

,' C of the Atomic Energy Act of 1954 as amended, requests the Nuclear Regulatory Commission to determine that sig-nificant changes in the licensees' activities and proposed activities have occurred subsequent to the previous anti-l (.[)

1 trust review of the Atomic Energy Commission and the Attorney General and to' order an antitrust review and hearing prior to granting an operating license.

Applicant South Carolina Electric & Gas Company (hereinafter SCE&G) was granted a construction permit for Summer Nuclear Station, Unit do. 1 on~ March 19, 1973.

The antitrust review of the Attorney General occurred in 1971 and 1972 and his advice was issued on March 31, 1972.

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. l Subsequent thereto, the South Carolina Public Service Authority (hereinafter Santee-Cooper) entered into an agreement with South Carolina Electric & Gas Co. and other private electric companies operating in South Carolina, including Carolina Power & Light Company, to restrict their competition in the sale of electric power.at wholesale and at retail on and after July 9, 1973 in territories outside three counties and submitted said agreement to the legislature of the State of South Carolina in the ,

hope that the adoption and enactment of said agreement b_

by the legislature would immunize their otherwise unlawful agreement from operation of the antitrust laws.

On information and belief, in consideration for Santee-Cooper's agreement to the aforesaid restraint of trade l in electric power, SCE&G agreed to sell to Santee-Cooper an interest in the captioned nuclear generating unit.

For many years prior to July, 1973, Santee-Cooper's role in the power market in South Carolina was that of

') an agressive entrant into the market and an actual and -

potential competitor of SCE&G and other nearby private electric companies.

On information and belief, in 1935 those companies attempted by third party litigation to eliminate Santee-Cooper as a potential competitor. See Clarke v. South Carolina Public Service Authority, 256 S.C. 167, 181

, S.E. 481 (1935). Shortly thereafter these private electric l

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companies, fearing its actual and potential competition, I unsuccessfully undertook in the Federal Courts to enjoin

, the construction and operation of Santee-Cooper. See, I

Carolina Power & Light Company v. South Carolina Public Service Authority, 20 F. Supp. 854; 94 F.2d 520 (4th Circuit 1938). In 1942 Santee-Cooper made an unsuccessful attempt to extend its power operations and sales into central South Carolina by purchasing existing facili-ties of the Lexington Water Power Company and other private companies.

See, Creech v. South Carolina Public Service

(]) Authority et al. 200 S.C. 127, 20 S.E.2nd 645 (1942).

In 1949 the private electric companies failed in their

. attempt to block Santee-Cooper's extension of electric service to central South Carolina. See, South Carolina Electric & Gas Company v. South Carolina Public Service Authority, 215 S.C. 193, 54 S.E.2nd 777.

Prior to the 1950's the cooperatives and municipal electric utilities in South Carolina lacked access to power exchange alternatives and were therefore unable to compete l

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in the wholesale power market. When Santee-Cooper succeeded in entering the market, Central linked its destiny to Santee-Cooper by financing and constructing a large transmission system and thermal generating system in central South Carolina and leasing said systems to Santee-Cooper for integration with its power facilities. Santee-Cooper's operation of the aforesaid facilities was under a plan in which Santee-Cooper would meet the interest and principal obligation on the i

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facilities over the period required to amortize the out-standing indebtedness and thereafter it would succeed Central as the owner of these facilities. At the heart of the arrangement was the premise that Santee-Cooper would retain its competitive role in electric bulk power supply in South Carolina. At present about 1/2 of Santee-Cooper's approximately 1200 MW total load is its wholesale service to Central.

Since July 9, 1973 Santee-Cooper has no longer com-poted with the private electric companies. Other than continuing for the present to fulfill its contractual

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commitments to Central, Santee-Cooper limits its sales to 3 counties in South Carolina and to large power sales of over 750 KW in retail service territories assigned under state law to Central's member rural electric distri-bution cooperatives.

It is noteworthy that Central is almost entirely depen-dent on Santee-Cooper for bulk power supply and that the latter has initiated a policy of dual rates to Central for supplying

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power to Central for ultimate resale to large power ~ loads.

The aforesaid dual rates unf airly restrain Central's members from competing for such large power loads. Under applicable state law, Central's member-customers who

( are rural electric distribution cooperatives face compe-1 i

tition both from Santee-Cooper and from private electric l companies including Applicant for operating license, l SCE&G.

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.. q Wherefore, petitioner Central respectfully requests that the Commission make a finding of significant change and order an antitrust review be made and a hearing held on said operating license as soon as may be found convenient.

Central notes that it is dependent on Santee-Cooper for almost all of its power supply and would suffer serious injury if ,

there were to be any delay in granting an operating license N-for said Summer unit. 7 Please make service of all papers in connection with the foregoing matter on the undersigned attorneys

() at the addresses indicated, and on Mr. P. T.

Allen, Executive Vice President and General Manager, Central Electric Power Cooperative, Inc., P.O. Box 1455, Columbia, South Carolina 29202.

Respectfully submitted, CENTRAL ELECTRIC POWER COOPERATIVE, INC.

By b W v 1..d " &

Wallace E. Brand PEARCE & BRAND l

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1000 Connecticut Ave., N.W.

, Suite 1200 l Washington, D.C. 20036 l

Telephone: (202) 785-0048 i

j Attorneys for Central Electric By -

C. Pinckney Roberts DIAL, JENNINGS, WINDHAM, THOMAS

& ROBERTS P.O. Box 1792 Cslumbia, South Carolina 29202 i

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CLRTIFICATE OF SF.RVICE

,s I, Wallace E'. Br and', h'ereby certify that I have

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served a copy of the foregging Petition for a Finding

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of Significant Change and Request for Antitrust Hearing

. * , g 1 on Operating License on the persons listed below by i

depositing a copy thereof, postage prepaid in the United States mail this 6th day of December, 1978.

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>[ Wallace,E'.'Erand O

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s ( ,' s Mr. W. C. Mencher, President l t,

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, South Carol'in'g Public I Service Au'thority 9

223 N. Line'g0ak Drive Mancks Corner, S.C. 29461 N..U.S. Nuclear Regulatory Commission',1

, Of fictr 'of thojsecretar,y 5 i

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i ' At tr.: Docketing and Service Branca '

e tra nh tug ton, D/C. 20555 \ 't 1 <

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Conner, Moore \and Corber ,

1747 Ppnnsylvania Avenue, N.W.

(;). Washington, D.C. 20006

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U.S. . Nuclear Regulatory Commission Offige ff. the Executive Legal Director

.W ashington, D.C. 20555

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'l k . P. T. Allen Executive V.P. and General Mgr.

Central Electric Power Cooperative, Inc.

sP.O. Box 1455

's Columbia, South Carolina 29202

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C. Pinckney Roberts Dial, Jennings, Windham, Thomas &

Roberts P.O. Box 1792

, Columbia, South Carolina 29202

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