ML20064C692
| ML20064C692 | |
| Person / Time | |
|---|---|
| Site: | Arkansas Nuclear  |
| Issue date: | 10/12/1978 |
| From: | Hamilton D CATHEY, GOODWIN & HAMILTON |
| To: | Toalston A Office of Nuclear Reactor Regulation |
| References | |
| NUDOCS 7810240001 | |
| Download: ML20064C692 (13) | |
Text
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CATHEY, GOODWIN G HAMILTON MNJMCt CAT 11tY 200 WEST DtER3ON STREET TELIPHONE RAY A, COODTD3 r.O. 80% 720 DON!5 2.FWAILTCN 8501) 236 7718 4
twtar Tnawa ucORE PARAGOULD, ARKANSAS 72450 DONALD PalCE CIWJCY,JR.
4 October 12, 19'i3 Mr. Argil L. Toalcton, Chief Peucr Supply Analysis Section Antitrust and Indemnity Group Nuclear P.cgulatory Cc =iccion Washington, D. C. 20555 PS:
Ecview of Applicaticn for Operating Liconno of Arkansan Nuclear Cna - Unit 2 y
.r Mr. Taalston:
The undercigned ccuncol represent the electric utility cuned and operated by the City of Paragould, Arkansas (Paragould Light Plant co=incion).
Paragould, by specific requests initiated in April of 1977, and set forth below, hcn bcon secking participation in planned coal-fired, lignite and nucinar units of the A:hanaan Pouer and Light Company.
The city becaco avaro in Septenbar of 1973 that your Section pursuant to Secticn 105c(2) of the 1954 Atomic Incrgy Act, as amended, in conducting cn invcntigation to determine uhother nignif-icant changes in the licenceos' activitica or proposed activition have occurred cubacquent to the 1971 revicu in connection uith AP&L'c conctruction pcrmit which vould unrrant your recommendation oS an antitruct revicv.
Tho kcy focuc, ac reflected in the 1971 (jter of advice, ic Uhother the applicant has chcun a villingness to coordinato vith caallor cyctems therchy improving the poscibil-ition of competitive colectica concerning. the com enents of bulk power supply.
The information Paragould supplics below in pertinent to this inquiry.
Starting in April of 1977, Paragould has informally requested and discucced the quaction of participation in planned units with AP t.L.
Although APSL hac not refused to permit Paragould to par-ticipato, noither has it cado a commitucnt to permit participation.
Tho history of contacts batucen Paragould and APEL is cet forth belout 1.
April 14, 1977, Paragould requestod participation in coal-fired and nucicar unite (sco Exhibit "A" attached horcto).
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t tir. Irgil L. Toalaton, tiuclear Regulatory Co:miccion Pago 2 October 12, 1979 j
2 August 2, 1977, and coptember 13, 1977, infornal discua-sions betwcen O. V.
"rMidy" Holcman (Director of naten and Roccarch for AP L) and John McDaniel (Managor, naragould Light Plant Cenmis-sion) concerning participation by Paragould la the Independence Steam Electric Generation Station.
3.
October 10, 1977, Paragould requesta 19 of each of APOL's planned Independence County coal-fired units (sec E::hibit "D"
attached).
4.
Octohor 12,.1977, discussion between O. V.
"P>uddy" Holeman and John McDaniel.
5.
October 20, 1977, AP&L roupondo that it will cet up a icting with Arch Pcttit, Precident and Chief Executive Officor of i
APGL, on November 39, 1977, in Little Rcck.
(Sca Exhibit "C" attached.)
6.
'icvember 30, 1977, meeting betvaen Arch Pettit, President of APGL; Jerry Haulden, Secrotary of APSL; O. V. Holeman, Director of Rates and *: 3 search for AP5L; Dr. Charles Boucrc, Chnirran, Parneculd Light Plant Corctission; Charlos Brazil, comission manhert John McDanici, Ht. nager of Paragould Light ?lant Cc miscion; and others.
At this recting, Parasculd cynin affirned itc interont in participation with ?,PsL on the Independence coal-fired generatine cystem.
Paragould vac assured that APSL vould consider Paragould's roquent.
During the initial enchance of pleasantrics hotucen Para-gould'n chairnan, Dr. Charles Eowers, with rcprenantatives of TG'aL, Dr. DoWoro understood that AP&L uns c:Occting to have fin 01 ccrr.it-k nents by the end of July,1979, as to whether any other custcncra
? A2&L uould be participating with it in the Independonca unit.
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7.
April 25,1973, John McDaniel discucces raragould's inter-est in participating with APSL and Arkansas I:1c e ric Cooperativo Corporation on two lignito units then in the planning c.tage.
3.
May 22, 1970, Paragould formally exprocaca interant in the tuo lignito units boing planned by AP&L and ArCC (ace Exhibit "D"
attached).
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9.
August 13, 1978, Paragould reaffir.s its interent in 1% of both unita at the Independence coal-fired plant and formally requesta participatica for an additional percent raking a total of 7% of ecch unit at the Independence coal-fired plant.
Alco, Paragould roaf fir:
its interont in the lignite units under plan between APOL and AT.CC (Sec Enhibit "E" attached).
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Mr. 7xgil L. Toalston Nuclear Regulatory Cor:aiccion Page 2 October 12, 1970 AP5L is the only major private utilib/ in Arkancas planning generation uhich in la,rqa cnough in cine to pernit participction by other utilition and to be econcmical.
AP&L'has permitted participa-tion in its planned units by Arkancas ?.loctric Cooperative Corpora-tion, the Conway Corporation, and the City of Jonachoro.-
APSL's units are not over-cubscribed.
Paragould could he permittod a 2'A interest without impact on APLL'c desired majority cunership profile.
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Verytrul[yours,Y,<
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CATII7.Y,/ COODMIU'5 IIAMILTOL/and FAIRI!7di,',FRISW (i,I!ONACO /
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John !!cDanic1,
'anagar Paragould Light Plant Corniscion Membora, Paragould Light Plant'Commiccion Arch Pettit, Prosident and Chief Executive Officar Ari:anaan Power and Light Corapany P. O. Bon 551 Little Rock, Arkancac 72203 Dir:h Polt:
Burna L McConnell, M gincers P. O. Box 173
'Ennsas City, Misucuri 64141 Graca Pouars lionaco
?cirnan, Frich 'a lionaco Attorneyc at Lav Suito 301-n
<t?atorgato Office Building 2600 Virgina Avenuc, N.W.
Washington, D. C.
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t 0 8sJ.' J t. McDANGI m uaoaa EXHIBIT "A",
PAGE 1 I
April 14, 1977
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W Mr. O. V. Holeman Director of, Rates and Service Arkansas Power and Light Compa'ny P.O. Box 551
'Littic Rock, Arkansas 72203
Dear Mr. Holeman:
Pursuant t.o my telephone call with you and Mr. Mills. Murphy, I am writing you to indicate the interest of the City of Paragould, Arkansas in participating with you as a part owner in a power plant which will supply power and energy to your sy' stem and, in the interim,.in. purchasing canacity and energyofrotn yes'; system.-
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We realine that the:developmen: oi f'q.t:i.h,Ti'CT. 7 W.n.@
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i-n.a'rticipationJa,r,rangement could take a large amount of time cnd a.idhsa tial: Effort on the nar.tiof both parties.-
.Thus, it is import'na5_.t.h,al,we both begi*r'iEil)igjcedlf$i%e We understand that the City of Jonesboro, Aha?. sac,a,n,d the Ar'.,$ arts'as Elcetric Cooperative Corporation (ArkCo) are both participating'in the White Bl&ff Stee,.m Electric Station. Since these participation arrangements.must already be substan, tially developed, it may be that the City of Paragould,could accept those
(,, arrangements with little or no modification.
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In order to investigate this possibility, we would l'ike to review the Jonesboro and ArkCo documents.
As the loads of out two utilities continue to grow, it will be.necessary l
that additional generation be.placed in service to s'erve these loads. As you develop plans for this addi:ional generation, we would appreciate being
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kept informed on these matters, and we request the privilege of discussing participation with you as a part owner in these facilities. We anticipate Servin.,o Paracadd WithLow CcsGlect.::cySince 1939' s
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1:ight' Plant Commission apj&yeaL<d6:w am EXHIB1'r
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PAGE cormNUADON cHcCT Mr. O.V. Holeman Arkansas Power & Light April 14,1977 that you will put into sdrvice different types of generation in order to l
attain the most economical balance between peaking intermediate, and base load generation. To effect this objective, it may be desirable that the City of Paragould participate in nucicar and coal-fired steam units. We understand that it is the policy of your parent hciding company that all future nuclear units on the MSU system will be owned and operated by your sister operatirig company, Middle South Energy,. Inc. Thus, it may be necessary that the City of Paragould also talk with MSE.
. Concurrent to discussions on our participation in these generating units, we will need to discuss appropriate arrangements for reserves and for dispatching. In addition; arrangements will have to be made for the trans-t mission of this power to our City through wheeling over your system, instal-lation of City-owned transmission lines, or installation of lines jointly-owned by both of us.
In the more immediate future, the City of Paragould has need to arrange for off-peak energy in the amounts shown on the attached sheet. This off-pcah energy would be supplemental to our existing SPA peaking energy which is limited to 1200 hours0.0139 days <br />0.333 hours <br />0.00198 weeks <br />4.566e-4 months <br /> per year. We will also need to discuss transmi'asion arrangements for these purchases.
Wit'h' the above information; we respectfully ask that we establish a mutually convenient meeting time and place at which we can discuss more fully and completely the future power supply for the City of Paragould.
Sincerely,
' u.T P L A N T OMMISS'DN n
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u Jo a rf. McDanEb1 Manager JHMcD/rh attachment
EXIIIBIT " A",
PAGE 3 PO*JER & EMERGY REQUIREMENTS l'O RESO'.'RCES 1978 1979 1980 Total Power Rcquirements,.TJ City of Paragould System 44.9' 47.6 50.3 Reserves
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45.4 48.1 50.8 Total System Requirements Total Power Resources, h"4
.leneration 3.0 City of Paragould 3.0 3.0 Subtotal 3.' 0 3.0 3.0 I.
Purchases SPA Fira Hydro 30.5 30.5 30.5 S'PA Peaking Hydro 20.0
,2 0. 0_
2 0._0_
50.5 50.5 50.5, Subtotal m_
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Total Pcwcr Resourses 53.5 53.5 53.5 Additional Power Resources Ecqu' ired 0
0 0
Total Energy Require :nts, C7a City of' Paragould Sy:,_em 1S2.05
- 193.34 204.62 Losses 0.-
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Total Systen Requirements 1S2.05 193.34 Total Energy Sources,.C'Jh Generction 0
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Dear Mr; Holeman:
f We appreciate the opportunity to discuss.with your company the possibility of participating.vith you and others in your proposed V/e understand that this project will Independence Units 1 and 2.
consist of two coal-fired steam electric generating units each As you currently having a net output of'approxirnately 700 megawats.
have them scheduled, Unit'1' would be in commercial operation by June'1983, and Unit 2, by June 1985.,'.,n We realize that the development of"arrangenaents for our participation in these units will take a large amount of time and.
a substantial effort on the part of both parties. Thus, we appreciate and we anticipate your willingness to start the p: oces s at this time,
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we both can work smoothly to a successful culmination.
During our last discussions in August, you requested that we send you a Ictter confirming our interest and indicating the
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This amount of capacity we desire from the Independence units.
letter is to serve that purpose. indicating agdin our interest in To determine our-desired participating in the Independence units.
Burns le McDonnell, participation, we asked our consulting engineers, to review our power supply situation in order 'to establish our Based on their studies, we are contemplating partie-participation.
ipation in the amount of 1 percent of each unit, which amounts to 7 megawatts (net) from each unit.
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EXIIIBIt "B",
PAGI cormtmATicn succi (2)
Mr. O. V. Holeman October 10, 1977 f,
Arkanns Power & Light Company 4
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-i We realize there are many details to discuss and to take care of before our arrangements for participation in the Independence units can be finalized. One important matter on our side is formal
. City action by both the Light Plant Commission and the. governing body. This action will only be possible after all the details have been worked out, including such items as wheeling, reserves,' and 4
fuel..,
4 We will look. forward to meeting with you rednesday to begin the discussions concerning our participation in the Independence units and' working out the myriad details.
i Sincerely, k' PLANTfCOMMI[SION L
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October 28, 1977 O. V. HCLE?/A?J omicTra c; EXHIBIT "C"
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i Mr. John McDaniel, Manager Paragould Light Plant Cornission Paragould, Arkansas 72450
Dear John:
This. vill.confirrt our telephone. conversation concerning -
the cecting with Mr. Arch Pettit, President & Chief Er.ecutive.
Officer, at 3 p.m. on November 30, 1977, here in our Little Roch offices.
The topic for discussion for this ceeting will be your request for ownership participation by the City of Paragould in our Independence Steco Electric Generation Station, as discussed in our' meetings on August 2, September 13, and October.12, as well as your letter dated Octcber 10, 1977 As I promised in our October 12 eeeting, we will prepare and forward to you about mid-December, 1977 a draft of agreement for the sale of appro:cicately 20 lbr of off-peck power to the City of Paragould commencing on or about June 1, 1978.
Sincerely, h,h
'O. V. Hole.,dn
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Mr. A ch Pettit Mr. Jerry hauiden Mr. E. B. Dillon, Jr.
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c Liay 22,1978 EXIIIBIT "D",
PAGE i
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' hir. O. V. Holeman, Director of Rates and Research Arkansas Power L. Light Company P.O. Box 551 Little Rock, A rhansas 72203 Re:
Participation in Lignite Units
Dear air. Holeman:
We certainly appreciate the time which you and L"r. Teed have taken with us'.'on;Aprid3, and }i;ty 11 to discuss the contract for off-peak energy. l:%,;cJwill:look forward to meeting with you again for' further :discussi'ons on this contract in the near future.
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As we discussed duringlEEiiiitial pleasantri's of our meeting e
of April 25, we e re sending you this letter to indicate our inter-est in participation in the lignite units which 31r. A rch Pettit,
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President of your company, and Air. Harry Oswald, General Alanager of the A rkansas Electric Cooperative Corporation, publicly announced in conjunction with Governor Pryor a couple months ago. We understand the two lignite units will be approx-imately 700 31W cach and located. generally in south-central
' Arkansas, where they will use the Arkansas lignite' on a-mine-mouth basis. We aise understand you are " currently planning these units for service in 1986 and 1988.
We will look forward to further discussion with you and your company concerning our participation in these units. II you.
- ServiM R;rcaould With Low Cosmlect.riait.v Since 19.9.7
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EXIIIBIT "D",
PAGI Lir. O. V. Holeman Page. 2
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May 22,1978 I.
3 have 6,uestions or comInents concerning our participation or this Ictter, please feci free to contact me.
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' e LIGHT PLANT CG LIMISSION O
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John H. LicDaniek n
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EXHIBIT "E",
PAG 1
Mr. A rch Pettit, President and Chief Executive Officer Arkansas Power and Light Company J ',
P. O. Box 551 Little Rock, Arkansas 72203
Dear Mr. Pettit:
As you know, the Paragould Light Plant Commission has been discuss-ing both formally and informally the acquisition of a participating interect in your proposed Independence units, numbered 1 and 2.
We understand that this proposed project will consist of two coal-fired steam electric gonor-ating units each having a net output of approximately 700 megawatts. A s we -
understand it, you currently have Unit 1 scheduled to begin commercial operation by the midp,(ejf 194and Unit 2 to begin commercia'. operation by the middle of 198?'t:.v.;
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of correspondence which,fergue,, ve arp enclocing' copi'e,,s of various items For your ready,re p
,, ve could find 'in'dicating oureaincere interest in pa rti c ipa ti ng with,yo'u'r 'c o mpann in tha sg p roj e c tM,,.
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e As your reference to our 1ctter of October 10, 1977, to Mr. O. V.
Holeman would indicate, we at that time requested a participation in the (T
amount of 1 percent of each unit at the Independence project, the participa-tion amounting to 7 megawatts, (net) from each unit. By this letter, we reaffirm our interest in purchasing 1 percent of both units at the Indepen-dence plant.
If addition'al percentages of participation are availai>1e at the Indepen-dence project, we would like to acquire an additional percent at that unit making a total of two percent of both units or a total.of 14 megawatts (net) from each unit.
During the initial exchange of pleasantries at the last of November, 1977, meeting between our chairman (Dr. Charles Bowers) and other mem-bers of our Commission with representatiVec of your company, we under-stand that your company was expecting to have a final commitn}ent by the
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hir. A rch Pettit, President A rkansas Power L Li ht Co. August 18, *1978 C
I cod of July,1978, as to whether your other wholesale customers would parti' cipate with you,in the Independence unit. The end of July,1978, has passed and we are not aware of any other commitments having been made to your company for participation.in the Independence prcject. We would, therefore, holac to 4,
re.:cive prompt favorabic action from your company with respect to our request to participate in the Independence prQect.
We also understand that on April 25, 1978, your company publicly announced a proposal to construct two lignite units of approximately 700 meg-awatts each located generally in South-central Arkansas where they will une Arkansas lignite on a mine-mouth basieg. According to the accouncement,
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as we. understand it, you plan for these uni;s to be in service in 1986 and 1988, respectively. We reaffirm our interest stated in our letter of hiny 22, 1978,.
in participating with your company in these units also.
We will look forward to further discussions with you and your company concerning our participating in the projects above mentioned. We especially await the result from the decisions of your other wholesale customers as to their participation in the Independence units and a favorabic response to our request for participation.
Very truly your, L
HyLANT COhlhi SION C
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.icDaniel, hianager "JHM cD /rh hir. O.V. Noleman j cc:
Director of Rates and Services Arkansas Power & Light Company P. O. Box 551 Little Rock, A rkansas 72203 i
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Paragould Light Plant Commission hiembers /v enclosures m