ML20071F737

Fl Cities,A Group of Utils & Municipalities,Submits Initial Interrogs to FPL & Requests Production of Documents by Fpl. Supporting Documentation & Cert of Svc Encl

ML20071F737
Person / Time
Site:	Saint Lucie
Issue date:	10/31/1978
From:	Jablon R SPIEGEL & MCDIARMID
To:
References
NUDOCS 7811080064
Download: ML20071F737 (52)

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UNITED STATES OF AMERICA 'k l BEFORE THE  : O C.T 311978 > ~-

NUCLEAR REGULATORY COMMISSION $

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Florida Power & Light Company ) Docket No. 5 94' (St. Lucie Plant, Unit-No. 2) ) #

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FLORIDA CITIES ' INITIAL INTERROGATORIES 'N AND REQUEST FOR PRODUCTION OF DOCUMENTS BY APPLICANT ;s2b Pursuant to Section 2.714 of the Nuclear Regulatory Commission's Rules of Practice under the Atomic Energy Act, Florida Cities 1/ hereby file initial interrogatories and request the production of documents by Florida Power & Light Company ("FP&L") as follows. Each document produced in

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,, j response to this request should be referenced with the

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number (s) of the relevant discovery request. Each document _

should be numbered and a list should be prepared showingf the [ .

particular item of this request to which FP&L believes the li $

document to be responsive. To the extent documents have been$

produced in response to requests submitted in Florida Power &

Light Co. (South Dade Plant) , NRC Doc ke t No . P-63 6-A , or in response to interrogatories and data requests submitted in proceedings before the Federal Energy Regulatory Commission, 1/ Florida Cities include the Florida Municipal Utilities Association, the Fort Pierce Utilities Authority of the City of Fort Pierce, the Gainesville-Alachua County Regional Electric Water and Sewer Utilities, the Lake Worth Utilities Authority, the Utilities Commission of the City of New Smyrna Beach, the Orlando Utilities Commission, the Sebring Utilities Commission, and the Cities of Alachua, Bartow, Fort Meade, Key West, Lake Helen, Mount Dora , Newberry, -

St. Cloud, and Tallahassee, Florida. -

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i FP&L may, in lieu of recopying documents, refer to such pro-duction identifying the proceeding and the d. ate and item q - _

number of the request to which they were responsive.

Responses to interrogatories and requests for the pro-duction of documents shall be served upon the following persons:

Robert A. Jablon, Esquire Spiegel & McDiarmid 2600 Virginia Avenue, N. W.

Washington, D. C. 20037 Mr. Robert E. Bathen R. W. Beck & Associates P. O. Box 6817

[' Orlando, Florida 32803 ,. j

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Documents should be provided by FP&L as they become availaole.

I. DEFINITIONS:

A. " Company" means Florida Power & Light Company

("FP&L"), its subsidiaries, affiliates, or predecessor com-panies and any entities providing electric service at whole-sale or retail, the properties or assets of which have been

, - . . acquired by FP&L.

k~ ' ' B. " Electric utility" means a private or public cor-poration, cooperative, rural electric cooperative, municipa-lity, joint stock association, or any political subdivision, agency or instrumentality of the Federal, state, or municipal government, or a lawful association of any of the foregoing which owns, controls, or operates, or proposes or is studying the possibility of owning, controlling, or operating, facili-ties for the generation, transmission and/or distribution of electricity.

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'I C. " Coordination" shall refer to firm power sales, including partial requirements sales to supplement other -

power supply resources, reserve sharing, spinning reserve sharing, economic dispatch or economy interchange, staggered additions of generating or transmission facilities, emergency and maintenance power interchange, joint maintenance sched-uling, transmission service, connections or interconnec-tions, short-term power interchange, diversity interchange, or any sales, purchases or exchanges of any form of wholesale power among utilties. " Coordination" and " coordinating"

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, shall also include joint ventures in, the sharing of, or par- - - '

ticipation in, the ownership, operation, or output of generating facilities and the sharing of ownership, construc-tion, or use of transmission facilities, and any other form of interchange or pooling.

D. " Integrated operation" shall refer to the operation of an electric utility system in which all or some of the major electric facilities (large generators and high voltage

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transmission lines) are interconnected and operate such that a

the performance of any one facility will affect other facilities.

E. " Documents" mean all writings and records of every type in the possession, control, or custody of Company, its directors, officers, employees, consultants, or agents, I

including but not limited to memoranda, correspondence, reports, surveys, tabulations, charts, books, pamphlets, pho- l tographs, maps, bulletins, minutes, notes, diaries, log

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l sheets, ledgers, transcripts, microfilm, computer printouts, vouchers, accounting statements, telegrams and telegraphic communications, engineering diagrams ("one-line diagrams"),

mechanical and electrical recordings, records of telepho.ne communications, speeches and all other records, written, electrical, mechanical, or otherwise.

" Documents" shall also mean copies of documents, even I though the originals thereof are not in the possession,

custody, or control of Company, and every copy of a document which contains handwritten or other notations, or which does

{ not otherwise duplicate the original, or any other copy. .. j F. " Identify," when used with respect to documents, means that the type, author, recipient (s) of the original, recipient (s) of copies, date, and subject of the document should be specified.

" Identify," when used herein with respect to any person, means that the person's name, current business address, and current job title and employer should be specified.

p " Identify," when used herein with reference to any cor-s/ poration, association, cooperative, or other legal entity, means to state the name and current address of said organiza-tion or entity; if the current address is unknown, provide the last known address.

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i- G. "FCG" shall mean the Florida Electric Power t

Coordinating Group (or Florida Coordinating G,roup) . _

H. "FOC" shall mean the Florida Operating Committee.

I. "FMUA" shall mean the Florida Municipal Utilities Association; "FMPA" shall mean the Florida Municipal Power Agency.

J. "SERC" shall mean the Southeastern Electric Reliability Council.

K. " South Dade Units" shall be understood to refer to the nuclear generating units for which FP&L sought construc-

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tion permits in NRC Docket No. P-636-A. , , j L. " Relating to" or " relate" means relating -to in any way and includes documents which are the subject of the request.

(E.g., " relating to a contract" includes the contract itself.)

Requests concerning a subject or item should be understood to include possible or contemplated actions as to such subject or item. For example, a request for documents relating to interconnection plans would include documents relating to l , interconnection arrangements that have been considered but rejected.

- . ' II. DOCUMENTS NO LONGER IN COMPANY'S POSSESSION, CUSTODY, OR CONTROL:

If any document described in this section was, on or after 19 December 1970 (date of enactment of P.L.91-560),

but is no longer in Company's possession, or subject to Company's control, or in existence, state whether (1) it is missing or lost, (2) has been destroyed, (3) has been transferred voluntarily to others, or (4) has been otherwise 1

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disposed of. In each instance, explain the circumstances t

j surrounding such disposition and identify the person (s) directing or authorizing same, and the date(s) of such direc-tion or authorization. Identify each such document by listing its author and addressee, type (e.g., letter, memorandum, telegram, chart, photograph, etc.), date, subject matter, present location (s) and custodian (s), and if the documen t (or copies) is still in existence.

III. SCOPE OF PRODUCTION:

Each paragraph below, unless otherwise specified, refers to all documents made, sent, dated or received from 1 January 1970 to date, in Company's possession, custody, or control. ,, j IV. DOCUMENTS WITHHELD AS PRIVILEGED:

If Company withholds and asserts privilege as to any documents requested below, each such document shall be described, the person (s) preparing and receiving it iden-tified, and a brief statement of the reasons which in Company's opinion justify the assertion of privilege shall be included as to each document.

p All documents for which privilege is claimed shall be x-

. submitted to the Licensing Board under seal no later than the last day of document production.

V. INTERROGATORIES AND REQUESTS FOR PRODUCTION OF DOCUMENTS:

1. Furnish copies of maps showing Company's distribu-tion facilities in Company's service areas adjacent to the following areas: New Smyrna Beach, Edgewater, Vero Beach, Fort Pierce, Homestead, Clewiston, Lake Worth, St. Cloud, l

! Orlando and Daytona Beach.

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1 t l .i l 2. Furnish copies of Company's monthly 2oad duration

's curves for 1976 and 1977 (or data that will esisblish such curves), and the megawatt-hours included therein. For each of these months state

(a) the net energy supplied by each of Company's individual generating units; (b) the kilowatt-hour purchases by Company from other electric utilities; (c) the average cost per kilowatt-hour for each of Company's indivi-dual generating units; (d) the average cost per kilowatt-hour of each purchase from other electric utilities; (e) the kilowatt-hour energy sales by company to other electric l

( utilities; and (f) the average cost per kilowatt-hour of each .. ,

sale by Company to other electric utilities.

3. Furnish copies of all testimony and exhibits in Company's most recent retail rate case before the Florida Public Service Commission. Furnish copies of retail rate design studies and related correspondence from January 1970 to present.

4. State the rates and charges at which Company is

- willing to provide transmission services to other utilities in Florida. State the different rates applicable to dif-ferent types of service. If convenient, you may refer to applicable tariffs or rate schedules en file at FERC.

5. Furnish copies of all documents since 1950, including but not limited to Company's rate schedules, relating to any Company policy or position concerning resale by Company's cooperative wholesale customers of electric power and energy to municipalities, which policy or position is or was:

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'j a. currently effective;

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b. proposed to become ef fective in the -future; or -

c. which has otherwise been effective since 1950,

6. Furnish copies of all documents since 1950 relating to Company's position concerning furnishing bulk power, firm or non-firm to municipal or cooperative systems, or potential systems, including documents relating to such systems' ability to resell to retail customers at rates equal or comparable to Company's retail rates. Include copies of any comparative studies of wholesale and retail rates from 1970 to the present. - e.

7. Furnish copies of all rate design studies, documents relating to the decision to file, and all correspondence, memoranda and studies regarding Company's filings in Federal Energy Regulatory Commission Docket Nos. ER78-19 and ER 78-81, et al., ER78-282, ER78-342, ER78-395, and ER78-400.

Furnish copies of any wholesale rate design studies conducted by or for Company since January 1, 1970.

8. State whether Company has conducted studies since x_

1960 of any plans or proposals of any electric utilities which are members of SERC to construct generation and/or transmission facilities. If so, provide copies of such studies.

9. Furnish copies of all documents in Company's files since 1955 relating to:

a. proposed municipal power pools in the State of Florida;

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b. the proposed Yankee-Dixie plan

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} c. consideration of the development of a power pool, centralized dispatch, or any other form of coordination in Florida.

10. Since 1955, has Company ever constructed trans-mission lines with the knowledge that such construction would or might preempt territory? If so list all instances of such construction, indentifying in each instance the other electric utility (ies) preempted.

11.a. Did Company prior to 1960 consider the development

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or installation of nuclear generating capacity on its own

(- system and/or the capabiilty or liklihood of other entities , ,  ;

in Florida, including municipal and cooperative electric systems, of developing or installing such nuclear generating $

capacity?

If so, please provide copies of all documents relating to such consideration.

If not, please state the date at which Company did first consider such development or installation of nuclear f generating capacity on its own system or by other entities in Florida. Please furnish copies of all cost and/or planning studies of nuclear versus fossil-fueled generation since that date, including any environmental and siting considerations that are addressed in such studies and copies of all studies relating to the aforementioned cost and/or planning, but excluding documents used to develop and/or identify any environmental or siting considerations addressed in such cost and/or planning studies; J

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. b. Furnish a sample of a transmission load flow study made to support each of (1) the 1972 system, (2) th,e_J976 system, and ,

(3) the 1985 system, which has been used in transmission planning and that accurately describes the system as it was constructed in the cases of (1) and (2) above;

c. Furnish copies of all documents since 1960 relating to discussions with other utilities regarding the allocation of responsibility for, the location of, and the timing of trans-mission and generation construction; e- d. Furnish copies of all documents since 1960 relating

(~ to present and future planned interconnections with other

.- a utilities, and their proposed capacity and status (tentative or assured).

12. Furnish copies of documents since 1950 relating to policies or practices, understandings, or arrangements with other electric utilities as to allocation of wholesale or retail service areas, or that relate to the delineation, expansion or decrease of Company's geographic area of service.

( Furnish copies of documents since 1950 relating to Company's willingness or unwillingness to serve, or the desirability of serving, customers based on the geographic location of such customers.

13. Furnish copies of documents containing or per-taining to estimating factors utilized by Company for:

a. transmission facilities (by varying voltages and range of capacities for each_ voltage) per 'i.le or per hundred miles;

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l i b. ancillary substation facilities (by major cost components) and right of way; .

c. generation (by types) and ancillary facilities (provide breakdown by major components for both generation and ancillary facilities where available);

d. escalation factors relating to a., b., and c., of this paragraph, and for other operating expenses, including but not limited to labor, administrative, or general expenses.

14. Furnish copies of documents since 1955 (including records of expenditures) relating to advertisements, public

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(. relations campaigns, or other means employed by Company to

• e elicit support for its views or otherwise relating to any muni-cipal or state election in Florida.

15. Furnish copies of documents since 1955 comprising Company's individual files pertaining to Florida Municipal i

j Utilities Association, Florida Municipal Power Agency, or each member of FMUA or FMPA, including but not limited to copies of releases by Company's public relations office

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regarding those entities and any letters concerning or affecting them.

16. Furnish copies of documents relating to discussions, arrangements, or understandings which Company 1

has had with other electric utilities since 1950 concerning the sale or exchange of electric power by such other utili-ties to Company's wholesale customers or the sale or exchange of power by Company to their wholesale customers or other

! electric utilities with which the company has engaged in power transactions.

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17. Furnish copies of documents relating to the

'j following subjects, which are located in the -files of those -

individuals who by job or title are now, or have_been_since _1.

January 1950, responsible for preparing analyses of, fore-casting the effects of or who have otherwise been in posi-tions of responsibility for such subjects:

a. competitive aspects of Company's relationship with other electric utilities serving, or able to serve, at whole-sale or retail in areas overlapping, or in close proximity to, Company's service area; f1 (s- b. interconnection arrangements with other electric - <

1 utilities; i

c. coordinated system operation, generation and I transmission facilities expansion and pooling arrangements 1

involving other electric utilities.

18. Describe in detail the present and/or past func-

! tions of R. G. Mulholland, Tracy Danese, and R. J. Gardner.

If their functions have changed, describe each function 4

j separately and identify the time period during which each

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official was responsible fcr or engaged in such function.

Identify specifically any responsibility or involvement each j has had concerning: (1) any of the intervenors, individually i

4 or collectively; (2) the construction or operation of nuclear j units; or (3) corporate policy relating to provision of power supply services, including rates, terms or conditions for the period January 1, 1970 to present.

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, 19. For the period January 1,1970 to the present, state the individual (s) with primary respons-ibility for -

determining Company policy relating to the following:

a. transmission service for (1) municipal electric systems or (2) other systems;

b. firm power exchanges with (1) municipal systems or (2) other systems;

c. interconnection arrangements with (1) municipal systems or (2) other systems;

d. relationships with (1) municipal systems or (2) other

.I systems; - J

e. litigation strategy relating to litigation with .

municipal systems.

Please provide copies of all documents relating to the delegation of authority for these matters, including docu-ments describing the authority delegated.

20. Furnish copies of documents since 1950 pertaining to each wholesale electric customer of Company or municipa-r lity with which Company is interconnected (excluding billing

( data), including but not limited to:

a. documents in files identified by specific customer name; b, documents concerning retail or wholesale competition relating to such customers;

c. documents concerning the policy of Company with respect to (1) sale or purchase of electric power and energy, (2) purchase of facilities, (3) interconnection, (4) interchange, (5) coordination to, from or with each customer; t.

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d. documents relating to any analysis or study of each customer's system operations, rates, finances, expansion pro- -

_ _ _ . posals and programs, and any maps and diagrams of each customer's electric system;

e. documents relating to offers by Company to purchase any electric system owned by such customers or municipali-ties, including but not limited to all proposals of Company;

f. documents relating to any communications with persons who are or were (li members of boards of directors of whole-sale cooperative customers, members of city councils or com-( , missions or other city officials or municipal utility boards - e or authorities, or (2) managers of staff personnel of such municipal or cooperative systems;

g. documents relating to communications to or from, or internal documents concerning any taxpayers' or citizens' committee or any similar group or newspaper, or concerning any action taken or proposed by such committee, group or newspaper with respect to matters affecting a wholesale customer or municipally owned utility with which Company is interconnected.

21. Furnish copies of all documents since 1955, including minutes of meetings of the Board of Directors and the executive committee of Company, documents prepared in advance of meetings (e.g. agenda, memoranda in summary or critique of plans, costs, proposals or status of negotiations), and letters and memoranda to or from Company officers relating to: -

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a. interconnec' tion plans, proposals or agreements with 1 other electric utilities;

b. recommendations, formulation of policy, development of alternative plans, seeking of opinions, and decisions con-cerning beginning, continuing, delaying, or abandoning expan-sions of or additions to generation capacity or transmission system, whether capacity or energy is owned, used, or shared on any basis by Company;

c. competition at wholesale or retail;

d. acquisitions by Company of electric utility proper-ties and proposals for such acquisition or invitations to

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purchase electric utility properties;

e. legislation and constitutional revision and/or revi-sions in local ordinances affecting the ability of electric utilities to own, finance, or construct facilities or to sell electricity;

f. elections in any municipality operating an electric distribution system or proposing to do so;

,, g. consideration of the request of Florida Cities to (se) participate, through ownership of an entitlement share or otherwise, in Company's present or planned generating units.

7. 2 . For the period January 1, 1960 to the present, please provide copies of all documents relating to (a) the potential or actual development of nuclear power by entities in Florida other than FP&L and (b) the potential or actual ability of Florida municipal electric systems to gain access to nuclear power.

23. In Florida Power & Light Co., FERC Docket No. ER78-19, et al., (a) FP&L's Mr. Orin Pearson testified (tr. page

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1090) that Mr. Robert Gardner (FP&L Vice Pre,s,ident, Strategic ,

1 Planning), is "the corporate individual primarily concerned with the antitrust environment," and (b) Mr. Gardner acknowledged that " competition" is one of the " principal t

areas of the business environment" with which his department

, is concerned.

Please provide copies of (a) all documents describing or relating to the delegation of responsibility to Mr. Gardner for " competition" and/or the " antitrust environment," (b) all documents prepared by Mr. Gardner or by those under his ,, ,

supervision relating to " competition" or " antitrust," or (c) all documents relating to communications (written or oral) between Mr. Gardner (and/or individuals under his supervision) and any other FP&L official or agent relating to

" antitrust" and/or " competition".

24. During the period January 1,1955 to the present has 17&L received any grants or contracts from Federal or State agencies? If so, please (a) identify the sponsoring

(_' agency and the date the grant or contract was awarded; (b) state the sums received by FP&L, and; (c) summarize the nature of the grant or contract and identify the period during which work or other activities undertaken pursuant to such grant or contract occurred.

25. Please provide copies of all documents referred to and/or relied upon in the preparation of the April 26, 1976 Memorandum from E. L. Bivens to Tracy Danese, attached hereto as Appendix A.

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! 26. Please identify contractors that have received (or shall receive) sums totalling more than S5,000,000 for work on any of FP&L's planned or operating nuclear units.

27. Please provide copies of FP&L's contracts for ura-nium enrichment.

28. Please identify the amount of tax credits (including investment tax credit, job development credit, or other credit) associated with each of the Turkey Point and St. Lucie nuclear units.

29. Please supply copies of all documents relating to

( ) reports and/or other information provided to the Board of ,, ,

Directors (including documents relating to discussions with or among any Board members) concerning each of the fol, lowing topics:

a. potential or actual competition with other utilities in Florida;

! b. potential or actual antitrust review relating to any i

of FP&L's planned or actual nuclear units;

c. the potential costs and/or benefits to FP&L of the

. development of coordination among utilities, in Florida and/or in any other state;

d. FP&L's policy concerning firm power sales to other utilities;

e. FP&L's policy as to allowing other utilities access to FP&L's transmission system;

f. potential or actual acquisition of any municipal electric system (s);

g. requests by Florida municipal systems to participate in the development and/or ownership of FP&L"s nuclear units;

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>j i f h. legislation and/or constitutional revision affecting the ability, authority and/or obligation of electric utili- ,

ties to own, finance or construct facilities or to sell electricity.

30. Furnish copies of all correspondence, memoranda, and other documents since 1965 relating to the development of any permanent interconnection now existing between Company and any other electric utility.

31. Furnish copies of all documents from January 1, 1955 to the present relating to Company's policy and position

( regarding restrictions on the geographical area in which a .. ,.

wholesale customer or municipal electric utility with which FP&L is or was proposing to interconnect, may sell power and energy at retail or to another wholesale municipal or cooperative customer.

32. Furnish copies of all documents which refer or relate to proposals, suggestions, or requests by a wholesale customer or municipal electric utility with which FP&L is interconnected to obtain from Company or other supplier par-('

tial requirements service, wheeling or other transmission service.

33. Furnish copies of all documents relating to financing, including documents relating to:

a. methods and mix of embedded debt, preferred stock and common stock and cost component of each for 1978 and pro-jected for each year 1979 through 1988;

b. current cost of new capital;

c. terms and conditions associated with capital, A

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including but not necessarily limited to:

(1) restricted funds and payments thereto, (2) interest and debt service coverage, (3) cumulative nature of preferred dividends;

d. schedule of projected payments on debt (principal and interest payments) .

34. Furnish copies of documents relating to activities by Company to obtain for itself subsidies, exemptions, waivers, loans or construction funds, or other favorable actions by any agency, political subdivision, legislative body or other instrumentality of federal, state or local

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governments, benefitting Company, including but not limited to actions relating to:

a. generating projects;

b. transmission line construction or relocation;

c. air or water pollution control;

d. tax rulings, state or federal;

e. federal or state tax legislation or regulations thereunder;

(,, f. fuel use, availability and/or price;

g. federal or state regulatory legislation pertaining to electric utilities, including but not limited to amend-ments to the Federal Power Act and/or Florida State statutes, including but not limited to:

( 1) bills af fecting the jurisdiction or organization of any governmental agency charged with licensing, supervising, or regulating Company's facilities, rates or services; (2) bills affecting the' ability of municipal or cooperative systems to acquire or own facilities or render electric service;

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j (3) federal energy legislation, including but not 1

I limited to the Department of Energy Organization Act and actual or proposed legislation relating to' coal conversion, natural gas, utility regulation, and/or national energy policy.

35. Furnish copies of documents which provide the following data concerning each presently existing generating 8

unit on Company's system and such estimated data with respect to each unit under construction or planned:

a. incremental costs at various levels of unit output including incremental fuel cost and variable operation and maintenance cost;

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b. no-load running cost of each unit including fixed fuel cost;

c. start-up costa in dollars following (1) four-hour shutdown, (2) 12-hour shutdown, (3) 24-hour shutdown;

d. average annual fixed costs for each unit, including:

(1) fixed operation and maintenance; (2) fixed charges, including a breakdown of fixed charge rate by all components;

(, (3) other fixed costs, including administrative and I

general expense allocable to each unit;

e. original investment cost and date of commercial operation;

f. incremental heat rate and total heat rate throughout normal net loading range;

g. average annual fuel cost in cents /MMBtu for each year 1977-1988;

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h. minimum and maximum net output in mw;

i. normal amount of time (annually) for scheduled

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maintenance and refueling; '

j. for future nuclear units, documents describing how amortization of the initial fuel core is handled in the above t

costs and providing a breakdown of total capital cost and unit cost amounts for each unit;

k. unit rating (nameplate and gross capacity), summer and winter; .

1. type of each generating unit (steam turbine, gas tur-bine, diesel, etc.), and whether used for base load, inter-(;

mediate, peaking, or standby service; .. .-

m. insurance rates and amounts, including types and t

coverage (coinsurance, fire, boiler, extended coverage, etc.);

n. steam temperature, pressure, and flow conditions for each unit, existing and planned;

o. unit operating personnel incuding number and classi-fication of employees, hourly wage rates, fringe benefits and

(. , administrative overheads, etc.;

p. copies of studies on nuclear fuel management strate-gies and Ltudies on costs and method of financing nuclear fuel, including unit costs for ore, conversion, enrichment, fabrication, shipping spent fuel, recovery, plutonium credit, etc.;

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': q. copy of Company's agreement with International Mineral Chemical Corporation for uranium mate, rial produced as _

a by-product of phosphate processing, and c'opies of all docu-ments relating to FP&L's decision to enter into such agreement.

36. Furnish copies of monthly accounting summaries, '

reconciliations, or billing statements made during 1976 and 1977 pursuant to or in accordance with interconnection agreements between Company and any other company which indi-cate the manner in which power, energy, or transmission ser-l vice is exchanged or otherwise accounted for, and how compen-fs. sation is determined as between the parties. Furnish copies ,, ,,

t of all statistical summaries and documents necessary for an accurate understanding of the accounting methods by which I

entries on log sheets containing power and energy data are ultimately converted into monetary settlements.

37. Furnish reliability data for each gener& ting unit, including forced and planned outages, number of hours down-time, number of outages, reasons for down-time, mature forced outage rate and calculation thereof, and number of hours 4 - k.- cperated during the past year.

38. Furnish reliability data for transmission lines,

, including outages per 100 miles per year for each of the i

various voltage classifications of lines, reasons for outa-ges, and maximum single-occurrence outage time, in hours, during the past year.

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39. Furnish copies of documents reflecting changes in 1

, any rate schedule, tariff, contract, agreement, or terms or conditions of service. Furnish copies of alt documents relating to the effect on Company revenues (in dollar or per-centage terms) of any such change since 1960.

40. Supply all documents since 1955 relating to the sale or possible sale of wholesale power, including any alternatives thereto (including pricing, terms, conditions, and methodology of pricing, but excluding cost-of-service documents affecting specific rate levels) to the Fort Pierce

.. Utilities Authority, or the Cities of Fort Pierce, Homestead,

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..; Vero Beach, Key West or Sebring.

41.a. During the period January 1, 1974 to January 1,

, 1977, did officials of the City of Vero Beach (including their consultants, attorneys, agents, etc.) discuss with any official (s) of FP&L: (1) the possible purchase of firm power from FP&L, including purchases under the Company's wholesale tariff? or (2) the possible availability of the Company's transmission facilities to Vero Beach for wheeling?

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( If so, (1) identify all participants in such discussions; (2) state the date and describe the circumstances of each such discussion; (3) provide copies of all docu-ments relating to such discussions; and (4) summarize all such discussions which are not otherwise summarized in docu-ments provided.

42. Since 1960 has Company intended to price its retail industrial power at average or fully distributed cost, less

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,],  ! j than average cost, or above its average cost? If the Company's intended pricing has been based on-other than -

average or fully distributed cost, state the reason (s) for doing so. If Company's policy in this regard has changed from time to time, state when and why.

43. Furnish copies of all cost of service studies relating to wheeling or transmission service on Company's system for the period 1970-1988.

44. Furnish copies of all documents from January 1, 1970 to the present, relating to Company's policy and position requiring demand price ratchets contained in its actual or - -

proposed wholesale and retail rate schedules.

45. Furnish a set of all rate schedules for wholesale electric service (currently effective or otherwise) filed with the Florida Public Service Commission or the Federal Power Commission from the dates of those Commissions' juris-diction.over such rates. Describe generally the manner in which wholesale rates were fixed prior to Federal Power

(; Commission and Public Service Commission jurisdiction. In

, lieu of providing schedules filed with the FPC, Company may provide information sufficiently detailed to locate schedules at the Federal Energy Regulatory Commission.

46. Furnish a set of all retail rate schedules for large commercial and industrial customers for the period 1970 to the present including applicable fuel and other adjustment clauses and showing the ef fective date of each change in such rates.

l I

j i

, 47. For the calendar year 1977, furnish the annual cuctomers' summation of monthly kw demand, 'ksh and revenues ~

derived from large. commercial and industrial customers grouped approximately in the following categories for each retail rate schedule GS-D, CG, or CI, or predecessor rate or schedule if a change was made in 1977:

100-500 average monthly kw demand, 500-1,000 average monthly kw demand, 1,000-5,000 average monthly kw demand, 5,000-10,000 average monthly kw demand, (3, 10,000-25,000 average monthly kw demand, 25,000 and over average monthly kw demand.

48. Do any of the Company's retail customers possess any degree of self-generation capability? If so, please identify the customers and the capability.

49. Have any industrial customers, actual or potential, discussed with Company the possibility of supplementing (or replacing) power purchased from FP&L with power from other

( ,

sources? If so, please identify the customers and provide all documents relating to such discussion (s).

50. Please provide copies of all documents relating to the potential production of electricity in Florida (by FP&L or others) from (a) the sun; (b) solid waste; (c) biomass; (d) the wind; (e) the ocean.

0 1

i j ,

~

51. Furnish the following information for five custo-mers from each of the categories mentioned .in-item 47 above -

and for all industrial customers served under special contracts other than Company's standard retail industrial rate tariff, for each of the months in calendar year 1977:

a. the monthly actual kw demand,

b. billing demand,

c. kwh,

d. revenues,

e. annual total revenues for calendar year 1977.

! ( i s

5

52. Furnish copies of documents describing the economic - - -;

condition of the area served by Company, projections of future economic conditions, the prospect for attracting com-mercial and industrial customers to Company's service area, or other potential stimuli of economic growth in such area.

53. Please provide copies of (a) all documents describing Company's Department of Economic Development and

( b) any documents provided by that Department to potential

( customers.

\.

54. Please identify all new industrial customers added to the FP&L system in each of the years 1974-1978.

55. With regard to the new customer whose addition is described in Appendix B hereto, please provide all documents relating to the Company's efforts to attract this customer.

y . -

l i

56. As stated in FP&L's 1977 annual report to stockholders, at page 5, " Efforts by the State, by local

~l governments and by business such as FP&L ap' pear to be attracting new industry and encouraging existing firms to expand their operations through our service territory."

Please (a) provide all documents relating to the " efforts" referred to; and (b) identify any additional load in Company's service territory resulting from the " efforts" referred to.

57.a. Please list all exchanges (including meetings, telephone contacts or other communications) relating to the

/, 4

t. -

making, negotiation, agreement, approval or modification (proposed, actual or potential) of Company's T-3 contract with Florida Gas Transmission Company ("FGT") or FGT's warranty contract with Amoco production Company (or related, predecessor or successor companies thereto). State the date and location of all such exchanges; identify all those pre-sent and describe their purpose and all matters discussed during them.

b. Furnish copies of all documents relating to such exchanges (excluding invoices and billing data). If the documents provided fully reveal the substance of such exchanges, further description thereof need not be supplied. If the substance of such an exchange is not fully revealed in the documents, please describe it and identify the source of the information provided.

i 1 tl f!

1 1 -

$

7-~ j

)l,_ ,

Q' h [/  ?$

" 5 i-Y,,.m5uc,rc:.mra r, . APPENDIX A be "d

.~t - r 7Ms' E CCnME"7C.*:0E!;CE s ..N..

e,.

!s...,

p*?p<.

k-2.,. u

c;.r c:a .

.o.-...-,---....:,. ~~ ,-. fu. .s M. Tracy - Canese .;e.r: .,.

,---: - 3, b

.3 o- J,fa; . .

... : . v

{; I. L. Sivans c:nes to . ,

y, ,$

h. I

$< mu -

• re . .'*

Scuch Cade Nuclear Fewer Plant NEC Cocket No. ?-636A & 0-339-A g'Vct s.

S.;. M {

w

. ,,5fidavit o f Harrt C. Luff, Jr. NQ e n .7l$;.Q 4 F-5 y

3

, b; 4.,-g M h:cb ,e I have very carefully read the affidavit by Ear:f C.

Q'c n -p . . ,

Luff, Jr. , have noted certain discrepancies, and offe:

the follcuing cc==ents to clarify certain statements 42 pp

. $8 f ,,7

.J or allec.aticns hv. Mr. Luff. .

W, , . o. *(i

.. .. 9 2 :;u

} L

? ace 3, 3rd carac:aeh '

. 1 k;.i J

.,. j=

x:+n-o s. '"o the has t o f rf =e=c ry , I did not contac- Mr. Reedy T/5.

-t l

\' ' } and Mr. Wiley in Septerher 19 72 at a =eeting of the ,.i LG5'.

Florida Cperating Cc-- i thee.

p $4I"f .

Furthe . ..c re , I wculd have' had no reason to centact the:t regarding participation in a p:cpesed nuclear 7

IM4

"=lant for the fellcwing reasons:

'W; %T 4

4 - "

. i' **W h \ ', ' n.'

4 .- 1. There was no =ceting of the Ficrida 0,:arating

.]  ?

J32:q Cec:=ittee in September 19 72.

y%g).G L

p

1. -

.4 cot .i'

2. The August 1972 meeting of the Florida Cceratine .9dd' Cc=mittee, while attended hv Irvidg Reedy and

~

. - - .- M? $..d. .

'. - =yself, was not attended by J. K. Wiley. ,

qgf r;.,-  :.ew 4

3. The next =eeting of the Florida Cpe:ating Cc-~' ttes m m.

4ing was in Cctche: 1972. I did was in :urope en vacat.not fj;)$.

cn. attend that meeting Q~ . ; ,

as A w -c -.<

t.

} .

i .s,

. 4. My area. of respcasibility ir. Septerber 19 72 was System Feuer Supply. Responsibility for syste= &j.fq.g -

' ;;.g*c t j kG,4 pla=ning was under the General Engineering Capart- L .t ', ; 4 ment.  : .. ':p $

Af ter Cu.rt Stanten had centacted Marshall Mccenald ahcut the pcssibility of Criando, Jacksenville and I?L joincly JmacQ f' 3 huilding a nuclear pcwer plant, Marshall Mccenald "

I '}

direcced =e to contact Ear:f Luff and Ken Wiley to see '

L. "

i.f sc=ething eculd he worked cut to the =utual benefit b.3W.fi..

of all three utilities. O.is I did, and we =et in Cece:her 19 72 to explore the pcssibilities of jointiv W.+ a r.

building a gewer plant alcng or near the ea.et ceast, "" N -

hetween C:lando and Jacksonville.

1?. '

94

.W. y A

i . s-~--i. ,.cf'.4 I w wm

. . m '-

A y

'd.Q ,* : *y

• &g'y,' W

'*

• r NI e,tENCI -.fo a n.:m:2 rca re Ja c:wi.w. pcs reut rc =u to:s sev.:: s Es:

c W -

- C.

. . . =

% e.-= . . . . . . . . -

• '--- r---*-9'Tm_ .w a.s.pg g..me ma .y

.[

.._-._s_

_ , _ , _ g -

,7 ___. _ .I 3

3 W:.s.

h. . ;a. ,c.

L *- <e -

~f. , ;-

w.. W . * .

p Pace 3, 2nd caracrach 4) f) +..

r a

l sN; r.A ". "centacts with Florida Pcwer & Light representatives

?

f1 '

~ in 1963 revealed no interest...", "Spekes=en for Ficrida {,l 9 wer i Light sca.ed..." ..

""- l i L .* - ,

, ' * ;- Mr. Luff did net idantify Florida Pcwer & Ligh: represenca-

,..9t tives or spckes=en for Florida Pcwer & Light. *o de -

hes t of =y k=cwledge, I had no ccaversaticn alcng these

" Jl ..~ .T i-es with Mr. Luff er anyone else in CUC in 1969. Ecwever, d

a ..-- I do rema+er cne conversation with Earrv Luff in which he .

y stated that Orlando was pim

• g to res_=end to a Justice .'

Cepar--=a.t questionnaire cencerning pcssible anti-trust y

, practices by ??L in cenne.ction with St. Lucie No. 2, that

[ ff, the orlando Utilities COM ssien had no reasca to believe hg ..

a i that there were no "a=ti.-trust" i=plications in ??L's ' >

l de"7 # gs with orlando. ,

E n

.- * .+.

Pace 4, 2nd caracrach ~

. bl*.

Any stat =~ nte that I =ade ccncarnine. F?L's wil'# gness ~

to enter isto an agre=~nt to jointly ccnst:act a pcwer .

c s, plant, fcssil fuel a .d/c nuclear, were ccnfined to . . ,.

\ generating " 3 ts to be 1ccated in Northeast Florida, between orlando and Jachsenville.

was still grcwing very rapidly - there was no cil A t tha t

• i - , Flcrida N~

'ar-c

= c shc=: age. Florida Pcwer & Light Cc=n.anv., e Flcrida Pcwer Cc.. ora-den, Jacksccville Ilectric Authority ,

(

'and Orlando Utiliti es cc issien, were all at that ti=e, 1 coking fc= pcwer clant sites in the sa=e general area

~

g

{

b cf Northeast Flcrida. Based en FPL's prcjected Icad "

w.. g cwth, F?L would need ceneration in its serr!.ca area m

.yET

~

, north of Orlando by the late 1970 's. 2.jp k ,.'F.- Pace 4, 3rd and. 4 th = arse a=hs ve M

- ! ;ja S -

y

,u i~ Se reasca that ??L did not rescend te letters indicating '

7...

r M interest is. desired =~ unts of cac. acity f:cm a 3'oint -

+

generatien plan , was that Mr. Luff called cc: attan-den pV tc a Flcrids State Constitutional P:chibitien against '.

',/ . jcist cwnership. Because cf this Ccnse.ituticnal P chi-hitien there was no pai o da pursni g joint cwnership > ---

generatica further until a Ccestitutienal A=end=ent eculd -~

~

he passed. FPL cccperated with c lando and Jacksenville b -

to secure passage of a Ccnstituticnal A=enr3 v-t hv the State Legislature.. Se Ccestituticnal A=end=ent was n

passed in 19 74.  :

C.

!' 37 that = the " energy crisis

• was en. Load g:cwch  !

3_, c: FPL's systes d:cpped drastic'i'y. F?L in the Int' L,

• J _ of' 19 73, e- e tted to the installa:icn of a ec=hined  !-

. cycle gewer plant cf 430' =w adjacenn te cur Palatka f

' r~ - Pcwer P-t. Sis inst,ii atien was criginally scheduled 6

g hm*

t-L' .

I-1

~

tN -

e

~

4  %-

~ -- '

. - _ . -- w - _ _ , , _ _ _ _ , . ____,,.e

m

.g'g:g"' fcE!.

4; '

JW .

,

. '$>;r w

. service fe: the S e: cf 1975 Ecwever, because of f ff i;fc:

}~

liwdye-;.".the d:cp in 1 cad g:cwth, the unit is new scheduled fc

. y. m m. .- ts.e .:.a_11 c_e .

976.

), . .g T

. f,Uf Eased en de lates: dete =ination of cur future generating

,nf, g. ' recuirenencs, F?L will net need any =cre gene:2tien in

.:T Nor-h Tierida until the la:a 19 30 's c- a= 'y 1990 's. ' !

[; .i'$G cus, fer thesa reascns, ??L 1csc interest-in participating *

]L.'g., in a jcintly cwned pcwer plant in northeast Florida.

y . m' 9,m, Pace 5,3rd caracrach

• = -

p~w%

w.

., u.

4 E,pc.; c.e cwnership of a 500 kv transnissien systa= that veuld

'3 M tie with Gac gia, was based .cn icng standing traditica .

1.9@6J- general, ' and scundcwn business the trans=issichprinciples, linesthatthatutilities would, in are 1ccated in "'

i Pig *;. their territory. Therefore, Jackscaville Electric I 6 .. Audcritf would, build and cwn that portica of the 500 kv

@Q'.y.M $ ' 14 e originating f cm their sw " 4 g statics and :--~ 4 g d -

)

f d.f- to Cec:gia, I?L would build and cwn the 500 k 7 lines in r : .jg'g';g its territo ry s erving its f ac ' i ' 3 -s , and Flcrida Fewer d

', U' -M ~ ~ Cc peration wculd build and cwn the 500 kv 1.ines in its '

r~.

te::itcry serving its fac 'i t4 *.a s .

1 Since the 500 kv tie to Gec:gia and asscciated 500 *er J c. far418 ties were p:3-4-ily to increase de reliability of .h

electric service fc

all cf the electric sys: - in "

• Florida, it was p cycsec by ??L, JEA, and FPCc p., and

f. . . .:v.CJ-u-w

,, . agreed to in erinciale hv. 0:lande Utilities Cc-4 ssion, Ta=pa Electric Cc==anv h

N. M.. ,I .. ., . cwned electric syst= -E , ,that and the several other nunici=

non-cwning utilities ally >

Q. M .:yy@m- the should pay received.-

benefits fer sc=e of In thesobenefits far as in I p knew, cpc:~tien te Mr. Luff

.' f .;

has never seriously p cycsed any other fers cf cwnership '

j/G F -@Jks: c: paying fc the benefits received. . g i

w.s ..

- L ,.g , ew. W-y Pace 5, last ca se a=h, and Face 6, 1st caracrs=h

-u

. r-g-, .

d d.y.:;.,.$>l FPL has tnken a pcsiticn that through cc: present -

p

, . ; .,MV interccenecticns with C:lande, Jacksenville, T' a

-( .'

Electric, Flcrida Pcwer C= p. , Vero Beach, Ft. Pierce and Laka ~4crd, and. thrcuch cc: =erhershim and particita-

- um- - tien in the Flcrida Electric ?cwer Cec dil a "# g G: cup,.' hr-t -

and its various ec 4 tties and in particular, the Operating g C:c=ittee , we are =cv, and have been cpera"4 g as a pcci fc the past several vears, and each and every --a^er cf

[ this interconnected g cup is new and has been enjcying O

,i .

s the benefits thered:cm. . .4.-

k 7

g dh . Ah the Cet=he: 1975 =ee*' g, it had becc=e evident that fic?M.N c, eg,4.ed by :t: . Luff, was inten: -

al' HAT %.$p. the pccling Cn purs"# ~ g a =c;ns;ere f c:-ya, ' ' v s truct -=>

cci, lead' g to can*-- ' -ad n l r.. . !;%,$*kBCentralised Planning. *dhiledispatch F7L couldand see c't"at eratic=s , an'd . (f 4.

. v:I .,

. . - n' #%. . '

9

%%'i i. .

the ccher s= aller

}

}- " ".. . Y.  ;- -y l

~

r gi ot. , .

.1,  !==- ..

4 -

~4~  :

utilities could possibly benefit by such a =cre fc:=al' ' ' htd g

.j s" d.*- -

't pcci, we did not then, and dc =ct new, envisien any In fact, 5 [f

. henefits that would accrue to ??L's cust==ers . while (y C ,

( .cci

c=eration with cenc alized dispatch of gewer, less efficient . utilities, , M1- t.

_cssibly benefiting the smaller,

= elec ric pcwer E

wculd pr:bably result in higher F?L isccscs larga fc encugh to achiate gv a fl w-yd to the c.:stc=2:s of ??L.

h-all of de econc=y of scale en its cwn widcut becc 4 g -

hM  %)

7h: 5 4 part of a larger scre struc_ured c ganizacion. . M :;M e

-  :-;* e f 19 75 =ee ting , I stated that y 6 i

- Therefore, at the Cc che di4.1a% >

F?L was withdrawing f:cm any furder edfert to fc::2aI ,O h

" Statewide" .ccel ic: the reascns c.revicusiv civen. . - 06'.nF.'E sq w

2

> further stated at this =eeting that FPL wculd encourage

t7 %S y the other utilities to fer:1 a second scol which-would Ew.. ,a, .wr .

then be approxi=atelv. ec.ual in size to FPL, and that FPL y3);. j, l'? (.

would wc k cut a :anga-ants where feasibily possible, i fer these =unicipal syste=s in its territory ,that wculd g[#G,-g f[y%,

$ l he isolated f:cs the p:cycsed pcci, to join and participate. T >,, . t.

~

W Pace 6, 6th caracrach Jq

Y

/ the 1960-62 pericd, MacGreg- c ' '4, 2. W.

'(.' Sc=a**-- 4-

-J - [Mhyi Page, E. V. Street and I, =et in C:lando with Curc

51 4 '

The pu= pose of the =eetine was to S*'-ten and others.

d' acuss a 230 kv interconnectica, and CCC's p:cpesed t,

%I 4d f P

?-d' ~ C'ver No. 2 generator. At that time'CCC was 4- # # -s t ye M f ple-"ing to install a 90 =e . unit, duplica'* 7 the 4.ai.E h; unit. Mr. S=ith p:ccesed that CCC and increase the size of that  ??L would buy the Q CCC's p cycsed unit to 200 =w, excess gewer f cm CUC at a rate based en their inc=e= ental  %'/g:

J.aPM i  ?

7, .

r. ccs ts . CCC refusad ??L's effer - hcwever, CCC' did go M. i

' ahead and 4 -" t ' the larger unit that Mr. S=ith recc-a :ded, i ).

and sold their excess to Florida Pcwer Cc:peration. %w%+@t ya 6 j

[ ,

g.:/.q Pace G, last ca-acrach _ .v .

, , - es p Mv cenversatiens l% v,7 '

This =aracrach is totally ince recc.

Wh,.-

r. .E.

with I!.r. Ludd have been 'that the c. cces'ed F?L nuclear -

-Gi-f

""' ts were needed to se_m cur cwn custc=ers , and until L N b*

k*

we reached the ep*'-- a= cunt cf nuclear generation as related to cc: total generatica, sharing any pc: tics of T.7L j cur nuclear generatien with any other electric systes ~

q could caly resul' 4 ~ "# gher cests fer electric pcwer  ;'..}i; . 3g to FPL's custc=ers , including its wholesale c.:stc=ers.

. -lh . ,

.h

~ '$ilj1 j

gWWW

. %. wMJt

.ca

~. L. 3ivans x w*f S 3 es1.

5'

-M i

F-2 Tsa u 7. N

,;~i, .w+

[ Lu

<Q;I F ~<

k .u..,uM.

+ r~ ; :

i 4 i

?1 I N .

f_'

m. q w w =~ w -_.._p,m.

1 l

,. .- .- - . mm ~ a.= x c - ..._ . .. ----

-~- ~ ~

-i a . .

m _

t. h"i. : APPENDIX B 3 t.,sw W-g!

~

1

\

W B-

.I.

i**~

.'m. ann ere 3

~

f  :.&. .. gp3 &nplayees share accolades

! $?.

W ' _ -YM.7-

.~

. %r D. Q. m1:d7 .a

. .M .A; .

3 eneste County crve and eus.nees !. ace paid trouis Cec. 27 to FPL Vice WE  %+.f Jp Jei -4 2*J *=osnt socen *cr m part he payed n bnngirig a siarit manu'ae:unng pant q- 5:"-4%wdp6.i , 4a _. . f M P e .

- .a necommurwy.

r- sn=ed ine ac=o. wee: *Cmw FPl emobyees heWd bre ce prwecs

$q h w s 9,L t,.. ,,  : --c sce ...

s . .

. == wee. and enco ce p,ose.cs ==ed. m mmmunay uct um mme

' . ,, ,1 A. -

. s .' L k'h; , ; <

% - ~ '* amated. Bradenton Cismc Manager Al Putnam Sarasota Cistnc Manager j w'f .a , ,a. '-

^

L.

F 3k Ker%csad and severse cear FPL empeyees in the Westem Divisen a'c 4 V $c. -

~

c., see.new Cenc .no payed a v.ry imprutant reis songs.ee tne econome _

=mmment Commee a Cnamow o, Com

s. I -

. ioco ,=,acurm. and g;;;-. 7.~

W

-@g4  %",, Iasaa:matre smed,hisgw..; .; toad award, men and meced Manatee otsaats. *vou emoass. nave comested wem Q m. u o.aw or ceva c.m r m e.we er memo = = sei

==sy tut and.. eon.Your success =ouso ce a textboom cass.c n econorne y sa ae er .r nr><=s e .a n,m e uem c- w me.-e ea v==wmenomorrt*

-=====e a-== He ws resemng to m total community evcuvement n auraccrg sm, e ,t, a.o.,

'c',.'"c."rIs "r."N*.e*d[Z N.**o.r e E-., *:naezensamanmCountywentoutonasr ewim unw

_ m _e- _ ,e.,wd - wort and .s mong

_ s. _s ThafdS to FPL efforts .

m e=r = =$ e me manuf acuano >=c ==d ic-a. ' w=a a -

. . o - e mearnmurary errort aid matwnst I mma noced me sc='. favenng tnem over Giantindustnalf

- My irm

- m.n sa> a,s.a so,d.c

- - C - - ~ n - n - a - - en -

zand ine aceett eut d was me Manarse County Charrow woriang P.and in gove weg Mem pq eL fgg g -

2

( .

e %r n aeid3 5Gl %F wr f.J usePL employees tr.attrougnt me edustry here.' he sad.

suryone wne worved crt this protect-end 31ars a let of fes-can taxe g eat Juhui mettac::ompl+shment. W? ten mey see mat snowcase iactity en ee AAana.

A rwo-vear camcaign ey Acraes gov.

Ec'/ Cec.-2 trerenca GoverreF.m .er r across : rom Gracernon mey wui be recrunced of trer pesonahnserve-emmental 'eecers and tusmessmen, Askew.

cefudng a nut .cer of FPt. execunves. -sus:;st resuted n many incusarcs of jocs-.n a becer crianca for meir cr .udron

'}r has luiced a nn;nty sougnt.mure.rrumon *This ts prooacty me most myseca Jenorrung errencyed loculy-are in a eseer tfe styve for so many peccre.Thas industry to come to F1onda sra De amaseconorrsccnwmdisatt about.*

conar manufac seig mant for Manatee noy.' said BJi K:e.n. FPL's v== pan tk 4, .q - Ca.nty.

ID *, cent cf Ecenomic Deveicremet t whencoeranonaian 980.:he s: cam places Fionda on tne map fcron.are 2e row Protec:7 m-at "tC*. of me

6. ; , acce mareae.mns mars we cruvide custryr

. When me economic reasson hst n men taoor ' cree wd ee mmonsed of 974. F:enca Pac mroe pnmary reus.

rrere than 1.000 joos for locai rescents.

4 .'

It was K:en who woced tus rece, m Tarnpa Bay resscems. Sucse. mes-eunsm.agne.iture arc constr.a:.

boost me locas emnomy and cenase sentanves of me joet venturemeerms zu8f. onmary grewm we be n om. ,

taa revenues. non

• exona nodicon.*The aiemoargo wirtany discounted me Gud Cumlose zumc L--eewand ernenoyment l'uart me first, ccits weatner tne second.

'

• The iricustry is a joet venture by Son en their nanonal Nunt, at:ar caprta ecome. '

M1*aukse-based Ants.Chaar:=. ors and and home construcDon suosecuent!y Tape Tampe Wortr Famm West Germarty s S;emens AG. Utg. "Justsgoodrasws.too.forFPt sance cocined by SC* The s ale suf'ered

• They first thougnt mat lasua:Re asC:r cariys Ariancal heat:tt has cramancacy?

q reateey more man U00 munon will be retirement community tossema as maps beert 5ed dreccy to me eco, i evested by these c=rncartes n me agnceture incusmes would to cza> isme weWng of me a:mmurv*Jes ,

manufacunnq fachty. located on a men'ai to its mosty to sucocut-to iam *u' eve' explaaned K:en. M. Ken W cean m&stry snme

St acre site ascng the Manatee e'0ver ' orca requesd ter solarge an cament Enrvtettre *Salancact Crowth'

• O' * *CU"U*Y' #

muc=ng sucincrw>oriutrig ecusey couc."8*

ust eatt of me Cry cf Pstreerto. sasd sCen. e m present pecentage,

' p'"4  ? - Seeected from 123 Sites "Surwon me eeiooflocal1=umersan 'peacs Aonca rnantaart a 'a.arcad

-i' The tocation seeec en-etter to. Cf FPL's 18 memon custerms mis 3.'

4, were a='s to sacw mem these nec::ss, hi~'et* he ~acoed. I ans to lacx of ;ast year, neany 6*. were mousmas.

rv; nanowed cown 'rers a fe'd of 120 estead. , mund to assets to emarcos .amma :nar nud me sta:es econorry ccreenssng 7.$?. of me Comoanya

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• Arrencan srtas- as announced puo. Sonst sung rio cas vree years. energy sa;et Granls nemi Ace,+

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APPENDIX _ C gORIDA GAS TRANSMISSION COMPANY

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. enune x.w . onu es use ona es =>.ucs . p.a. mar ++ - ==nn ==. names k mw .

me ons us.ase -

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March 22, 1967

, .r .

Mr. E. A. Eenfro ,

P:= A=erican 2ctroleum Corporation .

Fact Offics Son 50879 ,

New Cricans, Lcuisicus 70130 .

De=r 12. Canfrc: -

i .

This is la recycnne to your inquiry reg:rdi=3 ratas of enka undar thich vs cro- willing to ccespt gas u=dar that certai= con::::ct with you and Aust :1 dated Cova=bs: 20 , 19 % .

( ,

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2~

Our position in as follous: . ~, '

(1) 2cet=ning on tha dets our'fscilities cont:mp1=tod i=. FPC Dochat.

No. C265-393 n=2 cc= place sud va hcgin the transpe=tstica.of

, got to Floride Powcr or Light Coc:peny, as provided in :sid dockat, va vill be v1111st to eccept volte.==s of gas at a m=xi. - -

zum rata of 123,000 P.=fd under the t==ms of the rovamb:= 20, l , 19% contr:ct. We era villing ca continua tb cecept g : et ,-

.-' said rata fs: a period of -h therenf.ar (es*--tod t= be apprend--taly cuenty-cicht =enths) until cart =in. "u dar- '

Production'* in fimida deliver 1=g ~# .n s hn fuliilt~=t of .

said contr::t her boed. brought into bal=mce Tha ts::= "u-' :- -

production" chall cuas the endsr-produced allacebla assigned the prod =cing propert7 icvolved s1=ca July I,.1966 c=d t.-hi=h .

n=y ha 1can117 produ=ed at coca fu::ura data. The cars "b=I-ance" chall :=. that ti=c when the undenproducti=c. has h=an.  :- -

reduced to =cro. -

(2) Wa ar= carnechla th s11 vol  : of gas tchen u=dar (1)[

, shove, in e=cest of M,000 22fd, co=puted on : =octh17 cver-4GQ DOSiQ, Will bc considorad "b-tmd." c . c;g fu;;hgr l _

agrecabic that vol==as of ens th=t hevo been -An si=ca tha ,

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! be #--f=c of deliv :ic: "~'?: == 1.1 co = % , -

-17 Ju17 '

I,1966, to th= p.us == cud voir - th==' vill bc *-'-s=

f:cm the pr:ces: ust.11 th: bacia=isc of the 'h period 6 (1) i= c=:cc of R,000 Ikid, cleo co=puted on a .

monthly eve =;e basis, vill be considered "b ' -d."

(3) /.f ter the u= der-prod ==: ion h:2 heen *$rou3 h : i=a bd1===,

. . vo ::e villing to ccesp: es: = s ::b '-- = t of %,000 Mcfd. ,

' (4)

It 1: our uEJer:::=di=:: th== you vill ==1=cci= deliverien. , ,

~

at cr Mvc %,000 I* .fd for :: lon; as prud == ope =: ion

. ==d. deliver: bili:7 of cc-- sted vc112 vill pe:=i:, but th:t you n.7 deliver ic:a :h = G4,0C0 C:fd u=d:: ::id cca:::c . D.~. livery :: :::::.1 : th:= M 0CO I*:Sd io

:ce bla ut:h us to th: es::==, but only to tha c=::==,

/ ther the to: 1 ccv 4 : d vok== of delivery under ',

\ .. j M,000 I*cfd is co: gr :::: :: :=y poi == i= "'~' e' -" the

. volu=c b-*'--d is accord- c ui h (2) , cheve.

(5) It is our further u=d :s::=di=c. the: upos our reques: you vill fu =1:h c: you: =ce: =clic:ie c -'- :: of the vol- - , ,

u=== the: you uill - '-- evcikbh fo: cur purch::= for ,

i -

future ==ust perio<in by =on:h to f ilit= s ou: le=g-g d1=ps: chi =g =d vill f..117 ccope==== == ._ f be rencocchh i= fu=ichi=c i=fo==._'o= == to your lon;-= c: '

pI:== ==ls:1ve :s cc=ce: ion of additio==1 =oumes of

=d ather lik = :::= hevics : b --in3 es &c

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supply accu:L vele=c: of :::: th:: you, will. =-M cveil ble oc c, dcily b :is. ,

. (5) Co:uith := ding e y o,f th= above 1:==, u: cre ce=:*-i- g ,-

v

• to loch to 2:n .i=:ric = "-Ar 1:= cc:po=c v .==7 :o .-

fur =ish at:1 voli--* of 284,400,000 ::=f of g== u= der tha,

. ==== of said con:::== cf Eove=ber 20,19M ,

(7) Cochi=c is th= fo=ce1:~, ^-" bc co====u=d c= 1= scy v:7 effecti=0 ycur obifeccics := d=11vu: h: daily ge.=:1:ics ca :blich=d.12 :~: c======= with Florid: ? wcr 6 Lich:

det:d %:::5.12, 1965. ,

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• Tours very c =17,.

2LORIDA CAS 7:.t*:SZISS!::t CO::210:7 -

H. L. 'Jilhi:= .

M Sc=1o Vies 2:::id=:- .

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3

) .. . , l a APPENDIX D

'l '!

July 28, 1977 Mr. Marshall Mcdonald, President Florida Power & Light Company t P. O. Box 013100 -

Miami, Florida 33101 Re: Settlement of y Dockets Nos. -636-A and 50-389A _e_t __..

Dear Mr. Mcdonald:

The Intervenors have long felt that the litigation between our g s_ systems is unfortunate. Ultimately, all Florida electric utilities 1

~~

must be dedicated to serve Florida Ratepayers with reliable service - -

at the lowest reasonable cost. These ends can be best achieved through cessation of litigation and through cooperative effort to finance and build necessary generation and transmission facilities and the implementation of appropriate power pooling arrangements.

The Intervenors, therefore, make the following proposal for settle-ment of the NRC cases in Dcckets Nos. 50-335A, 50-389A, 50-250A, 50-251A and P-636A. They believe that the proposal is appropriate and economically beneficial to all parties on its own merits. The proposal is, of course, subject to the entering into of legal agreements resolving ancillary matters, and obtaining all necessary approvals, including those from city authorizing bodies. This pro-pesal represents a combined effort of the Intervenor Group to provide a basis for agreement. We are prepared to consider any objections, modifications or counter proposals of FP&L.

, = I. Participation in FP&L Nuclear Units

('g

l. Existinc Plants - With respect to the existing Turkey Point 3 and 4 units and the St. Lucie 1 unit, the Intervenors propose to acquire a 13.7% undivided ownership interest in these units jointly or severally, assuming all of the costs, burdens, and responsibili-ties of ownership. In order to achieve this proposed purchase, the Intervenors would pay Florida Pcwer & Light Ccmpany, on closing, 120% of the gross plant investment in the f acilities plus a propor-tionate share of the nuclear fuel in the reactor at cost. The Intervenors estimate, based upcn bcok plant investment figures shown in FP&L's Form 1 reports, that the acquisition of a 13.7%

ownership share of Turkey Point 3 and 4 under the above described cost formula would provide the Ccmpany with 542 million of capital plus the investment in nuclear fuel. Cn a dollars-per-kilowatt basis for this undivided cwnership share of 13.7%, the Intervenors estimate that, as compared to the net plant investment in these two units af ter deducting accumulated deferred federal income ta::es, this would provide the Ccmpany with approximately 172% of its

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Mr. Marshall Mcdonald '

July 28, 1977

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pre'sent net plant investment per kilowatt investment in these two units. Based upon published information, it is our understanding that repairs and modifications to these two units are estimated by .

i. the company to require additional capital investment of some $380 million. As joint owners, the participants would be responsible for

. a 13.7% share of these costs, or an additional $52 million. If the final estimated cost of modifications is in excess of such amounts, we would have to reexamine the appropriateness of basing our purchase offer on the original book cost instead of the depreciated current book cost. --

With respect to St. Lucie 1, the Intervenors' proposal is similar; that,is,13.7% ownership interest at 120% of the gross .

)}'

' plant investment in the facilities plus nuclear fuel material at ..

s" cost. We estimate, based on FP&L's per books figures, that the _

acquisition cost of the physical facilities at St. Lucie 1 under this proposal would provide the Ccmpany with in excess of $77 million of additional capital, plus the proportionate investment in ,

nuclear fuel material. As of the end of 1976, the Ccmpany reported the balance in Accounts 120.1 through 120.5 and 157 for nuclear fuel materials in excess of $85 million. Our purchase of a 13.7%

cwnership share would give you in excess of $11 million of addi-i tional capital, bringing the total to in excess of $185 million.

These amounts of new capital frem outside sources could materially assist FP&L in meeting its construction requirements and the requirements to make the modifications and repairs at the Turkey Point 3 and 4 plants, thereby alleviating the burden of such financ-ing to FP&L's ratepayers.

As an alternative to the above proposed cwnership share in the units, if FP&L's position is to maintain an absolute ownership j

N~f interest in the existing plants, the Intervenors would enter into a 13.7% unit purchase frem these units, Turkey Point 3 and 4 and St.

Lucie 1, based upon the Company's actual embedded cost and appro-priate levelized cost of service basis over the balance of the life of these units. They believe that a unit sale would be less advantagecus to you, as well as to the Cities, since it would not provide FP&L with outside capital to aid your ccnstruction program.

Under hoth the ownership interest or unit pcwer purchase alterna-tives, the Intervenors would be willing to commit to payments based upon principals that would go back to the original undepreciated cost of the plants.

2. St. Lucie No. 2 - With respect to che St, Lucie 2 plant, which is presently uncer construction, the Intervenors would acquire an cwnership share of this unit of approximately 13.7%.

With respect to the acquisition cost, the Intervencrs would propose to pay their proportionate share of all of the costs of constructicn

and ownership including, at the date of closing en St. Lucie 2, a proportionate share of the construction work in progress as of that

. _ . a

.i

. . l 1

Mr. Marshall Mcdonald ..

July 28, 1977 ,

s date and a proportionate share of any nuclear fuel material acquired for that unit. With respect to the proposed acquisition of St. Lucie 2, the 13.7% share of the construction work in progress as of December 31, 1976, would provide the Company with ~

approximately $16 million of additional capital; Interveners' share of the estimated additional cost to complete St. Lucie 2, of S732 million, would provide the Ccmpany in excess of $100 million.

This would bring the total investment by the Intervenors in the existing plants, Turkey Point 3 and 4 and St. Lucie 1, based upon book figures and the Company's estimates to ec=plete St. Lucie 2, to something in excess of $300 million.

3. Additional Units - We do not know the current status of the South Dade or other FP&L planned nuclear units. However, Intervenors would be willing to consider purchase of a proportion- ~

. ate share of planned future FP&L units. They believe that true coordinated generation, both nuclear and non-nuclear, would be in the overall best interests of all systems.

4. Purchase of Additional Capacity and Sale Back to FP&L -

The Intervenors would desire to purenase an ownersnip snare in the existing units, Turkey Point 3 and 4 and St. Lucie 1, or in St. Lucie 2, in excess of the 13.7% share proposed and to sell such excess capacity back to the Company on some basis that would be a reducing amount and would not jeopardize the tax exempt status of the municipal Intervenors ' financing. The Intervenors would make such sale-back of excess energy power and energy to the Company on a split-the-savings basis between the Company's cost of money and the Intervenors ' cost of money.

/ '. 5. Sales of Replacement Capacity from the Intervenors to N/ FP&L - With respect to the existing units, a 13.7% share of One net capability of the units amounts to approximately 292 MW of capacity.

The municipal Intervenors will commit to sell back to FP&L a like amount of capacity from generation on the Intervenors' systems at the Intervenors' actual embedded cost of such capacity. This would represent a considerably lower cost of capacity to FP&L than its continued ownership costs of the existing units, far 1cwer than the cost of the capacity frem these units that the Intervencrs have pro-posed herein above and far lower than the ecst of new fossil fueled capacity to FP&L. The Intervenors will commit to sell such system capacity back to ??&L in proportion to the capacity acquired directly, or with respect to any unit power purchases frem the existing units.

6. The above stated preposal for acquiring an cwnership inter-est in the FP&L nuclear plants and sales of capacity to F?&L is i based upcn and is dependent upon FP&L's suppcrt of legislation that will permit the fermatien of joint municipal agencies empcwered to acquire, finance and cwn such undivided cwnership share in the

1 9a

- I i . . <

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Mr. Marshall Mcdonald , .. July 28, 1977 _

i  !

Company's nuclear units, which will allow all municipal Intervenors to finance such ownership share. A sample draft of such proposed legislation is attached as Exhibit A.

f II. Firm Partial Recuirements Wholesale Service With thc sole exception of Key West, all of the Intervenors are presently electrically interconnected through the Florida Transmission Grid to the system of Florida Power & Light Company.

The Intervenors propose that, pursuant to an appropriate filed tariff with the Federal _ Power Commission-(either the existing SR-1 tariff or some other appropriate tariff for firm partial require-ments service) the Intervenors individually, or acting jointly

' through a municipal power agency, would be entitled to purchase

' such service from the Company. The Intervenors would be willing to. .

contract for such service, pursuant to a filed tariff, with respect a

to rates and terms and conditions including contracted quantities and appropriate notice provisions for the initiation or termination of such service. In addition, to the extent that such service would create a shortage of capacity on the FP&L system, the Intervenors are willing to sell to FP&L capacity installed on the Intervenors' combined systems.

III. Intecrated Power Pool In order to appropriately utilize their existing generating resources and those proposed herein to be acquired or purchased from FP&L, the Intervenors propose that FP&L cooperate with the Intervenors and all of the other electric utilities in Peninsular Florida in the establishment of a fully integrated power pool. The function of such pool would be to achieve benefits as follows:

)

s( ) (a) Centralized economic dispatch of all generating units in Peninsular Florida and after-the-fact accounting with respect to autcmatic economy

~

transactions and other pool transactions involv-ing such units.

(b) Equalized reserves and appropriate planning to avoid either excessive or deficient reserves for Peninsular Florida.

(c) Economy energy transactions on an hour-by-hour centrally dispatched basis utilizing af ter-the-fact accounting. (Upon establishment of the pool, such benefits should be automatic. )

(d) Short-term firm pcwer exchanges so as to permit maintenance of facilities.

t

[j . . f N,

il1 Mr. Marshall Mcdonald July 28, 1977 s / , . . -

1 (e) Long-term firm power exchanges so as to permit coordinated generation planning on a single-system basis.

(f) Secondary (surplus) energy sales whereby direct exchanges between two systems in the pool could be made within the context of pool agreements on the basis of a posted price of energy from one system with lower cost to the other system having higher costs during given hours of the day or periods during the year.

(g) Coordinated joint planning of future generating l' and transmission facilities in Peninsular Florida

o. on an optimal, single-system planning basis.

IV. Transmission The Intervenors propose that with respect to any and all of the above described transactions, i.e. , ownership s.iares in nuclear units, unit power purchases, firm partial requirements service, and the transactions pursuant to an integrated power pool, that FP&L recognize that all systems in Peninsular Florida have rights of access to the state transmission grid under reascnable terms and conditions. Specifically, the Intervenors propose that FP&L agree to file a tariff for joint transmission rates in Peninsular Florida similar to that proposed by the Utilities Commissicn of New Smyrna Beach in FPC Docket No. ER77-177. In addition, FP&.; should agree to recognize that systems having the option to make direct ownership investments in the Peninsular Florida transmission system propor-tionate to the loads placed thereon for any or all of the above transactions, thereby avoiding any charges to recover annual carry-

\ _j ing charges on the investment in transmission facilities by others.

The above proposal is intended to provide a framework to allow

1. or settlement of outstanding differences between Florida Power &

Light Company and the Intervenor systems. Acceptance of these proposals should create a climate for future cooperation to the benefit of ratepayers of all systems. We hope that you will give this =atter your serious attention so that discussion can commence to implement these proposals as stated or modified as may be desirable. ,

Ver" t- ly yours, HarryC.Ckuff,Jr.,

c. p.

C..a'rman j Intervenor Steering Ccm=ittee I cc: J.A. Bouknight, Jr.

h R. A. Jablon fY A

! HCL:RAJ:vc Attorney for Intervenors Attachment

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• l , , 1%rida Leijtulailvia Itapartur s P. O Boa 743 4s

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su ,ssas,se T IIet a==mes YlerlJe sen su s24e *

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• u.6 ,w.v umv . . 2 tic,n erf transm!'ssion of electrical caergy or tooth, including on u =

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4 any fuct supply or sourco uscful for such a projccj.

d 5 ( 21 The totn **public electric utility" st.all mean 2

.COmpanj00 Slll: 800a10' Blll 663 DY MaCKay. s any municipality, authority, comuinion, n' other public A bill to be entificJ f 7

4 boJy which owns, maintains, or operates an electrical cuergy '

An act authorizing the creation of a joint 5 , a generation, transmission, or Jistribtstion system within the i

power authority or authorities for the pur- 9

! ' . state of Flor!Ja. '

, pose of planning, financing, acquiring, con- ' ,

I 10 ( 3) The term " authority" shall acan a joint pouin

'{ structing, owning, managing, operating, anJ *

'

• 11 , authority created pursuant to this act.  !

utilizing electric energy generation and

' ' 12 Section 2. Creation of authoritics.

transmission facilitics anJ purchasing or I) , (1) Any two or more n.unicipalitics which are servtJ selling. at wl.olcsala, the cIcctric energy 14

• 31 %at retail in whole or in part by an electrical cacrgy tistri-12 or capacity produced by electric power sup. 15 ply projects; providing for the structurc -

bution system of a public clectric utility may by joint or  ;

11 16 concurrent resnlution or ordinance creato a joint power

'! [' '

14 of such authoritics, their powers, membership. . . ~

• 17 authority, which shall to a public boJy corporate, to cacr-

. creation, anJ Jissolution; authorizin'g such

~

15 fl8 ciso the powers and perfois the functions provided in this

• . authoritics anJ public electric utilities to . )

16 - 19 act. * .

17

. participato in joint, electric pouer supply ,

20

. . (2). The governing body of an authority shall consist le projects with investor-owncJ olectric utili- .

i

., 21 of a board of ' commissioners. Each member, municipality shall 19 ties and rural electric cooperatives, by 22 appoint one (1) commissioner. Each commissioncr shall heva joint ownership, contract for the purchase or I 23 at least one voto anJ may have in adJition thereto such aJJi-sale of clectric energy or capacity, or ' 24 tional votes as the member municipalities shall destanino.

otherwise; prow! Jing principios for construc-25 tion of this act; and providing an effective date. Each commissioner shall serve at the pleasure of tt.e appoint-826 ing authority. The m' embers may prow!Je for public officials 24 27 of the pembers to servc ex officio as coa.missioners in,adJi-'

25 Be It EnactcJ by the Legislature of the Stato of Florida: . b8 tion to their other public dutics as officials of. the acs.bers 26 29 f (2) Each authority shall have the.following powerst '

27 Section 1. Definitions.--h' hen used in this acts '38 t 2e (1) The term "Sl octric power supply project" shall . 31 *

, ~

, .2 . i 29 ,

scan any anJ all facilitics, incluJing all equipment, struc-20 * .

tuacs, machincry, enJ all E.sngible anJ intangible property, * '

21 real anJ personal, acccssary or convenient for t' icuera- .

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3 '(a) To plan, finance, acquire, cons t ruct, purchase, 3 tric powcr supply pioject shall be a project within the Jeft- i 4 operate, oaintain, uso, share costs of, own, lease, soll, 4 mition of such term in subsection 159.02(4), Florida Statutes. I-

~

5 dispose of, or otherwise participato in any c1ccaric power . 5 (f) To exercise all other powers necessarf and inci-

. 6 supply projcct or projects within the stato of FlorlJa. . 6 dental to the full and complcto' exercise 'of the general

• 7 (14) To purchasc from or sell'to any electric utility' 7 powers prescribed in this act! provided that thc.ncober muni-

• 8 within the state of FlorlJr, at wholosato, the electric a cipalities may by joint or concurrent' resolution or ordinans : 1 9

cncrgy or capacity or both produced by an electric power

$ enumerate hiIch other powers in. general or specific terns anJ '

16 supply project or projects, or any portion thereof. ,

lo may imp.sc such limitations upon the powers of the authority 11 (c) To fix, establish, revisc, maintain, chargo, pay 11 as they dece appropriato.

• 12 and collect rates or olhcr charges for services provided or 12 (g) To participate in any joint electric power sup.

, 13 benclits JcrivcJ or rcr.JorcJ under this act. _

13 ply project with an investor-owned electric utility or rural i

. 14 (J) To cacrciso all powers of caincnt ' domain for the 14 clectric cooperative association, by joipt ownership, con- ,

15 acquisition of property fot. the purposes provided in this 15 tract for the purchase or sale of electric energy'or capacity 16 act, unJer Chaptcts 73 and 74. Florida Statutes, r,r as may ,

16 or, both, or otheritise, to the same extent as any public elec-17 oth'crecise be provided by law;

• 17 l . tric utility or member municipality is authortacJ by this or 18 (a) For'the purpose of financing or refinancing the . le any other law to participate. i '

' 59 cost of an electric p wcr supply project or projects, to 19 (4) After the creation oi an authority, any other 20 cuercisc all the powers in connection with the authorization, ,

,20 municipality authorincJ hereunder to join in creation of an 21 issuance,' and ' sale of bonds os the sama Arc conferred upon 21 authority may become a acaber thercof upon the approval of 22 municipalities by Chapter 119. Part I, Florida Statutes. For 22 i .

the authority. Any member municipality may withdraw frou an i 21 e

this purposo, all of the p'rivileges, bcncfits, powers, and 23 authority with the consent of tho' authority; provided, how-24 tcres of Chaptcr 159, Part I shall be fully applicable to the 24 ever, that all contractual rights acquircJ and o ligations 25 authority; providcJ that nothir.g contalncJ thercin shall 25

• incurred while the municipality was a member shall remain in -

26 * .

I Iluit or restrict in any manner the right of the authority

,s

, 26 full force and effcct.

37 to effect ,an clectric *powcr supply project outslJe the bounda-

' 27

, (5) An authority may be Jissolved by joint or con-5 28 rics or corporato limits of any public electric utility or' *

,28 current resolution or ordinance of its acabers, anJ lts 23 . .- .

acaber municipality. For the purposes of this act, an cIcc. 29 funds and other property distributed to .its members as pro-30 .

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3 vidcJ thsrsin, upon a finJing 1.y its acahcrs that the pur- .

4 poses of'the authority have been substantially fulfilled; .

I No other act or parts thereof shall be construcJ or latcr- 1-5 proviJcJ that, all bonds anJ other obligations of the authorit) protcJ as inconsistent with or in JeroCation of tho'right of 3

6 have Lcen fully paid, or payncnt thereof has been July pro- municipalitics to exerciso the home rule powers as r.bove pro- *

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4 1 v1JcJ for.

• vided. .  !

5

• d

. Section 3. Joint Public/ Private Projects.--Every Section 5.

Powers Supplemental.--The ' powers cc.aferre.1 i

6 j

s public etccaric utility is autharlacJ to join with one or i

Iy this act shall be it. addition and supplementary to chistini i 10 para is.vestor-owncJ utilities or rural-electric cooparative . s a

powers and statute and this act shall not be construcJ as 111 associations or other public cloctric utilities, by joint

~

repealing or lisa ny of the provisions of any other law, 12 cwn6rship, contract for the purchase or salo of elec tric 10 general, local, or .lat; prowlJed, howcver, that whenever 13 cr.c rgy 'ur cap:,c yi t' ' or Loth, or othe ruiso, for the purposes

• the full and complete c,xercise of any power conferred on an 11 l I li of joir.tly flasncing, acquiring, const ructing, sian2Cir3, puthority or public electric utility by thip .act would con -

15 operating, utilizing, anJ o,cning any clectric power supply 13 flict with a limitation containcJ in its chartes or othct- U 16 project or projecta or purchasing or selling at uholesale wise expressed by special act, such charter or special act  ;

. 17 she clectric energy or capacity, or both, produced by an .

linitation shall be superseded by this act for ti.e purposcs j Is clect uic power supply project or projects, in accordance . .

of the excrciso of such power pursuant to this act. i :

i 19 with ti.e provisions of this act anJ. in ,the inplenentation Section 6.

8 g) Construction.--The provisions of this act. '

20 of this act, may create any ortanization, association, or *

, 3, being necessary for the welfare and prosperity of the stato 21 legal entity Ier ti.e accomplishnent of the purpos'os'of this and its inhabitants, and beint enacted for the purglose of 3

22 act. For such purposes, a public olectric utility shall have 20 laplementing the provisions of Articic VII, Section 10(J) 21 the sane powcrs as arc provi.ted in this'act for joint power -

21 of the Florida Const!'tution, as anended, shall he' libera'lly i 24 authoritics. .

, i 22 construcJ to effcct the purposes thercof.

• i 25 Sccsion 4. Ilona Itulo Pouers.--It is expressly recog- I 21 Sectior. 1. his act shall take ef fect July 1.1975. ' '

- 26 niacJ that nunicipalitist shall have the right to excrcisc '

24

, 27 the home rule powcrs authorized by the Flor!Ja Constitution 8 25 .

2s in order to cffectively carry out the purpoacs .of Article Val . .

• = ,26 29 subsection 10(J), of tho Florida Constitution and of this act .

. . 27 *

)g - .

28 l

31 .

5- * .

29 '

i .

30 4 * . *

. . 31 .

6

. L.. . . .

q' .

I

l

.'~... i q g

. . ~

' APPENDIX E -

) J}l [ b 0b)] bY0]l-368 Shih Commerce Aversue . ggg g,gggp t*.CR CGE PCLLA40 aesig n s.f stestr a v

      .                       emuma                                   P. O. Bon 971           ,

l j [,3 SEERING. FLOR!DA 33870 ## = 85'c"ta J. H. PHIkkl#$ MCEERf C. PULLARD gy agugen sca, ettosurr

       ;.                                                                                             ;          ....         ?-                             I January 27, 1978                                    !

j -

                                                                                                                                     @                       (

v. - -

l Mr. P.cbert J. Cardncr - . Vice President _ . - Florida Power & Light Company . i P.O. Box 013100 ' Miami, Florida 33101 i

Dear Mr. Gardner:

              ,-                                                                                                                                            r
      \                                        The Sebring Utilities Coutission has made a legal clain                                       *-
,         j                         to participation rights in Turkey Point 3 & 4 and St. Lucie 1 & 2                                                       ;

j  ; nuclear units. We are among the utilities vbo have offered to

, settis this clain. Unfortunately. you have rejected our offer. -

p l l i While I realize that the legal merits of our claim are in _

           ,                        dispute, delays in resolution of this matter create grave difficul-                                                     :

i ties for the Utilities Commuission and citizens. ,

           ,                                   I enciosa a copy of a report prepared by R. W. Beck &

j

i Associates dated Esvember 16, 1977, entitled " Outline of Future

           ,                       Power Supply Alternatives." It shws that the Utilities Coutission                                                     i must immediately obtain additional capacity for the short and long                                                     ,
            ,                      range future. Your failure to recognize our present entitlenents
            .,                      to nuclear capacity me m that we mast contract with either the
     \'              .

Orlando Utilities comission or riorida Fwer Corporation or both

             ,"                     for our imediate and abort range power supply requirements to                                                         l
            ;                      supplement our installed capacity, Our consultants have advised                                                        '

i us that the cost of power from thess altematives (or a combination thereof) would be hundreda of thousands of dollars bisher than the e

            ,                      cost of power from participation.in the IP&L nuclear units over the                                                   j i                      next five years. We therefore have no choice but to make this                                                    j renewd formal demand on FP&L for Sebring's entitle =nts in nucIsar

• capacity which, in accordance with the settlecent offer, vould be f 2.43 w each fr>m Turkey Point 3 & 4 and 2.93 nw from St. Lucie 1,  ;-

all of which unita are currently in eossercial operation, totalling 5 7.79 car, with 2.93 :sr from St. Lucie 2.1 ten that unit 1a placed in j commercial operation. r " 3 e We are advised by cut attorneys that it is inconsistent with h the antitrust laws for TP&L to virtually mnopoline nuclear g=neration 7 l in peninsular Florida and that we are therefore entitled to purchase 3 (and have been encicled to purchase) an ownership share of nuclear E

            ;                      espacity from you. In the event that you dispute our entitlements                                                F i            ,                      we are extremely anxious to discuss with you any reasonable basea                                                U
                                                           /3           r~1             / r~n      .

i N

        , . -l   ;.

• s~s s ~...as -

                                 ... . s . s a .                      - - - - - - . , - , . . . .                     . .
 !                                                                                                                            M under which you vould be villing to sell us nuclear capacity.                                           g i
   ,                  la view of your negative position to date on this =atter, we                                           $
   ;                  are in negotiations with the Orlando Utilities Co=fssion and                                          1        '

vid. I'1:rila Power Corporation. This makes it i=parativr 2at . we receive a response from you by February 15, 1978, whe 6er you ii are villing to ecmit to a sale of nuclear capacity to ra and 1 s- under what terms and conditions. 'I u

                                                                                                                ~
      ,;                         If you have any questions concerning this matter, please              . .

do not hesitate to contact Mr. Robert E. Bethen of R. V. Ecck & . f Associates, our consulting engineers, or Mr. Robert A. Jablan . i of Spiegel r. McDiarmid, or myscif. - l,e

                                                                                            ,i Sincarely,       ,          f dl
                                                                                                                           \l
                                                                           /                                               i

[_I.___-  ;

                                                          / a:=es R. I'hillips                     -

I ceneral Manager ['

    '                 Enclosure                                                                                       j
   ;                  ec: John Esthews, Esquire (v/out enc.)                                                          ;
   ;                       J. A. Bouknight, Jr. (w/out enc)                                                            :

r i Robert A. Jablon (w/out one.) , i Robert E. Bathen (v/out coc.) e

   ;.                      Comissioners - Sebring Utilities Commission                                                 N a

s'  %.. e 1;

                                                                                                                      =

g [ l h ' I E h h w U IY E

                                                                 -                                                   P!

l h 6 ' e E A E - E s z,

l -

             ~

AFFIRMATION OF SERVICE DISTRICT OF COLUMBIA, ss: ~ I, SUSAN G. WHITE, being first duly sworn, affirm that copies of the foregoing Florida Cities' Initial Interrogatories and Request for Production ef Documents by Applicant have this 31st day of October, 1978 been served upon the following persons, either by deposit in the U. S. mail, first class postage prepaid, or by hand delivery as indicated by an asterisk: A. S. Rosental, Esquire Fredric D. Chanania, Esquire Atomic Safety & Licensing Lee Scott Dewey, Esquire Appeal Board Panel Office of Executive Nuclear Regulatory Commission Legal Director Washington, D. C. 20555 Nuclear Regulatory Commission Washington, D. C. 20555 J. E. Sharfman, Esquire ~, ~ Atomic Safety & Licensing Jerome Saltzman, Chief Appeal Board Panel Antitrust & Indemnity Group Nuclear Regulatory Commission Nuclear Regulatory Commission Washington, D. C. 20555 Washington, D. C- 20555

• Daniel M. Gribbon, Esquire Melvin G. Berger, Esquire Herbert Dym, Esquire Antitrust Division Covington & Burling Department of Justice 888 Sixteenth Street, N. W.

1101 Pennsylvania Avanue, N. W. Washington, D. C. 20006 Washington, D. C. 20530 Jack W. Shaw, Jr. Tracy Danese, Esquire Mathews, Osborne, Ehrlich, McNatt Vice President, Public Affairs Gobelman & Cobb Florida Power & Light Company 1500 American Heritage P. O. Box 529100 Life Building Miami, Florida 33152 5

                }                                                 11 East Forsyth Street Jacksonville, Florida 32202 John E. Mathews, Jr., Esquire Mathews, Osborne, Ehrlich,

• Chief, Docketing & Service McNatt, Gobelman & Cobb Section 1500 American Heritage Life Bldg. Office of the Secretary Jacksonville, Florida 32202 Nuclear Regulatory Commission Washington, D. C. 20555

                      *J . A. Bouknight, Jr . , Esquire Lowenstein, Newman, Reis                *Ivan W. Smith, Esquire
                           & Axelrad                              Atomic Safety & Licensing 1025 Connecticut Avenue, N. W.              Board Panel Washing ton, D. C.       20036           Nuclear Regulatory Commission Washington, D. C. 20555
                      *E. Gregory Barnes, Esquire Lowenstein, Newman, Reis

• Valentine B. De ale , Esquire

                           & Axelrad                              Atomic Safety & Licensing 1025 Connecticut Avenue, N. W.              Board Panel Washington, D C.       20036             Nuclear Regulatory Commission Washington, D. C. 20555

m a . .

      ...e                                                                                                                               ,
   !

• Robert M . Lazo, Esquire R. S. Saltzman, Esquire Atomic Safety & Licensing Atomic Safety & Licensing ~

Board Panel Appdal Board Panel Nuclear Regulatory Commission Nuclear Regulatory Commission Washington, D. C. 20555 Washington, D. C. 20555 SUBSCRIBED AND SWOF.N TO before me, a Notary Public in and for the City of Washington, District of Columbia, this 31st day of October, 1978.

                                                                    'C          l/.               i Judith B.         Sklar p g*~** Mim fan. 31,196 f                                                          ..

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                                                                                                                     ,         r             ,

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