ML20078F878

Intervenor Exhibit I-39,consisting of Proceeding Re Reply to Southern Co Response to Oglethorpe Power Co Motion to Intervene,Comments & Request for Hearing

ML20078F878
Person / Time
Site:	Vogtle
Issue date:	01/12/1995
From:	AFFILIATION NOT ASSIGNED
To:
References
OLA-3-I-039, OLA-3-I-39, NUDOCS 9502020308
Download: ML20078F878 (4)

Text

- - - ~ -_. _ . . .

7 iy s.+

M -[

.g.

i k UNITED STATES OF' AMERICA ,

BEFORE THE SECURITIES AND EXCHANGE COMMISSION

'S

i ce w .,

~O  !

Jc m "l3 THE SOUTHERN COMPANY ) gg i:gp1 ,

ADMIN. PROC. NO. 70-7530 ca- 4 7) .

)

ALABAMA POWER COMPANY ) 0[1  !

m 4 i

)  :

• IP, [

GEORGIA' POWER COMPANY. )

}

9 l

'n  !

. (> l REPLY TO THE SOUTHERN COMPANY'S RESPONSE TO OGLETHORPE POWER COMPANY'S MOTION TO INTERVENE, COMMENTS _

AND REOUEST FOR HEARING ,

i In this proceeding, The Southern Company .

(" Southern"), a registered holding company, and two of its .  !

wholly-owned subsidiaries, Alabama Power Company ("APC") and l O Georgia Power Company ("GPC") seek authority for Southern to form,. organize and acquire the capital. stock of another  ;

wholly-owned subsidiary, Southern Nuclear Operating l Company, Inc. ("SONOPCO"), pursuant to the Public Utility l i

Holding company Act ("Act") and the Commission's rules.  ;

i If formed, SONOPCO would provide nuclear operation and l j

related technical and administrative services to Southern affiliates that own and operate nuclear plants.

Oglethorpe Power Corporation ("Oglethorpe Power")  :

.A .

filed a " Motion.to Intervene, Comments and Request for

' Hearing" on September 6, 1988 ("Oglethorpe Comments").

Oglethorpe Power demonstrated in its comments that 1) the  !

public interest would be adversely affected by the Commission's approval of the Application; 2) the formation .

, pag 0 Of 9502020308 950112 Exhibit PDR ADOCK 05000424 G PDR

l 1 l

e i l

i i

i l

l O

NUCLEAR REGULATOR'c COMMISSION y..mn w so 1 00cket No 5 * * " * ' cu ~J otic:s [xn No, 39 in the manet of _6f_dge , tA in .1 Suff _ ,, r to -

Ap; Rat _

J pp i , 5 . .g ngg latervenJr V _

y , g.,y Contg Oltr Cor. tractor DAJE I- t 1 'I f Ot%r witne33 Reporter

(, f:nte

\

b q_j Southern and GPC have now asserted that without regard to those discussions, the SEC should approve Southern's proposal. Southern's request is without basis. Contrary to Southern's assertion that the issues raised by oglethorpe Power only concern " resolution of . . . private matters between the parties" (Southern's Response at 7), Southern's continuing failure to present adequate support for its application goes directly to the public interest and other standards of the Act and the commission's rules. .oglethorpe Power does not seek from this commission " revisions of existing contractual agreements between the co-owners,"

Southern's Response at 7, but rather the proper and

. statutorily required consideration of a sufficient record and the implementation of safeguards required by the 1935 Act.

1. Degree of Involvement and Ability of Co-Ovners to Control Plant Doerations.

The creation of SONOPCO as Southern now contemplates would seriously undermine the rights of co-owners relating to plant operations and effectively prevent a(forts by the co-cwners to correct SONOPCO's failures in implementing its obligations and to protect their investment. As a result, the public's interest in efficient and prudent operation of the facilities will be undercut.

These events will occur under Phase II as contemplated by 3_

Exhibit ,page 3 of[

l

V i

~,

' southern, and are already occurring under Phase I. i SONOPCO's eventual assumption of the role of plant operator P would further hinder Oglethorpe Power's ability to act to '

assure prudent and efficient operation. Oglethorpe Comments , t at 8-9.

Actions taken by GPC and Southern during Phase I ,

have alrear*y had the effect of interferin'g with Oglethorpe l Power's ability to discharge its obligations and rights  :

under the Vogtle and Hatch Participation Agreements and to carry out its responsibilities to its members. GPC  :

i personnel with whom Oglethorpe Power dealt directly in ,

relation to its interests are now subject to separate j authority-and are located in -Birmingham, .__._.__.--

Alabama.  ;

O oglethorpe Power's ability to obtain contrr,ctually required _ ._. _.

information is thus hindered, ahditsabilitytofulfillits i

obligations as co-owner reduced, to the detriment of its and the public's interest.2/ Implementation of Phase II will

^

only exacerbate such problems unless appropriate conditions and safeguards are established. It is certainly not in the ,

pubic interest to permit establishment of a structure that '

f woulf, impede proper oversight of nuclear plant operations.

y The ability to obtain information about the progress of j construction and ongoing operation of the units is '

especially important after nuclear plants are commercially .

operable because of the need to be informed of decisions to add expensive capital additions. For example, the total  :

cost of plant Match has increased over one and one-half times since its commercial operation date because of capital additions to the plant. [

l, Exhibit N,page 9 of 6

. - - - . --