ML20086T754

Memorandum of Long Island Power Authority Concerning Supplemental Legislative History Matls.* Supports Legislative History & Argues That License Not Subj to Termination Under Section 2828.W/Certificate of Svc

ML20086T754
Person / Time
Site:	Shoreham File:Long Island Lighting Company icon.png
Issue date:	01/03/1992
From:	Reynolds N, Schenker C, Schneker C LONG ISLAND POWER AUTHORITY, O'MELVENY & MYERS, WINSTON & STRAWN
To:
Shared Package
ML20086T726	List: ML20086T723 ML20086T754
References
OLA-3, NUDOCS 9201070050
Download: ML20086T754 (11)

Text

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LIPA January 3, 1992 UNITED STATES OF AMERICA NUCLEAR REGULATORY COMMISSION pefore the Commission

)

In the Matter of ) Docket No. 50-322-OLA-3

)

LONG ISLAND LIGHTING COMPANY ) (License Transfer

) Application)

(Shoreham Nuclear Power Station, )

Unit 1) )

)

MEMORANDUM OF THE LONG ISLAND POWER AUTHORITY G9ELQEEHING BUPPLEliEETAL LEGISLATI,YR_.1{lgI_QHY MATERIALS The Long Island Power Authority ("LIPA") hereby submits the attached supplemental legislative history materials in support of LIPA's opposition to Motion for Stay of License Transfer and to Suggestion of Mootness, filed with the Commission on December 30, 1991.. The attached legislative history .is an excerpt (pages 100-109) from a Staff Report on New York Public Authorities Under New York State that was issued by the Temporary State Commission on Coordination of State Activities on March 21,

-1956.

This Report strongly supports the legislative history ,

of section 2828 of the New York Public Authorities Law set forth in LIPA's December 30 Opposition at pages 12-16. The attached excerpt reveals that the termination provision of section 2828 was not intended to apply to " operative" authorities, like LIPA.

The Report explains that "(ajny authority which is truly operative would have outstanding liabilities, such as bonds, 9201070050 920103 PDR ADOCK 05000322 O PDR

e n o t e s , 1Raanp_QI._qthtI_,s e qtrag1MA1_Qblign.t1Qng . " (Report, p. 104 (mphasis added).) As explained in LIPA's December 30 oppositior pp. 12-D i. IPA is very much an " operative" authority, and thus it is not subject to termination under section 2828.

Roapoctfully submitted,

) p- -

MG '

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nf Counsel: W 111am T. Coleman,jth.

Carl R. Schenker, Jr.

Stanley E. Klimberg John D. Holum President of Shoreham Projo::t John A. Rogovin and General Cot.nsel O'HELVENY & MYERS Richard P. Bonnifield 555 13th Street, N.W.

Deputy General Counsel Washington, D.C. 20004  !

IDNG ISLAND POWER AUTHORITY (202) 303-5360-200 Gardon City Plaza Garden City, N.Y. 11530 Nicholas S. Reynolds (516) 742-2200 David A. Hopka WINSTON & STRAWN 1400 L Street, N.W.

Washington, D.C. 20005 (202) 371-5726 counsel for the Long Islar.d Power Authority Dated: January 3, 1992 2

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e sta: 10' The enabling arts of the I:Imir a. Pr. lbkill aint Whier Faiatoga Springs Anthusity was s teatol in 19%; for a tunr ^

Plains Par king A nthet ities carh contain two ter minalism ,har initial peii..d. but stilesninent amendsnrnts esti ndol t hh provisions w hich n.ni.I be interpartn! as om!!irting. l~nder initial 1,crient to .iuly 1.EG. The White PLiins Parking the.first of its terinination piuvisions she I:Imisa P.u l,ing Antimrity was crea!cd w it h a the-ye.ir proliininary perie=1. !<2t Anthority is creaf nl for a pes iini ot' tise y ears an.1 thervaft r t his was later estended to June ;0.1950.

nutil all of its liabilities have lern met and its I..nds paj 1 The Albarrr Light, Itcat and I%ner Antbonity uns e rvatnl Pnder the senmd luovision this autfooity is to f er mina.c w ith per petual cris ten e in I!LU. Fino that. time this.inthur-w hen its inmds alone are puid otT. anel its a ~ ts and its ity has I,ccn dormant. Iforever, I=rause of its peitet ual bfc renusining of. ligations and liabilities are to pa-s in the e ity. .it t ontinues to exist aml can be activate.ddit Similar tennination provisioid: ire fomn' in the art i reatin;. w e3- any time I.y the Albany Ponnty lloareluf Supervisors uluch rg,en.jpou rini-the Peckskill Parking Anthority. to ap1 mint the members of the authority. The enablitig att of The act creating the White Plains Parking Authority pr., this anthurity is outun=Inl arn! still prusides for the priute vides in the first place (!at the authority shall continue until sale tibomls to the Ihronstrus tion I[inance Corihint, ion or

. Time !!D. I!!SO and thereafter until it" liabilitics base I.cen met and its lamds paid. In the_ second place this act proviles the Public Woria Administrution of the inicial gmerign(l bi IDIi the Courts found the original art unnmsfittiliona that the antimrity shall terminate w hencver all of its lamds ~

in patt.'

have beeri redeemni and the aforementionnfdate h5s been This authority i tempencred to,haye Albany (%:mty colhtt reached, amt its assets. liabilities and obligations shall then taxce gits Ich. if. Since 196the State Constitution has pm to t he rity, forbidden the ercaGon of a municipal or other insporation.

The acts creating the Elmira, White Plains and Peekskill cwept a county, city; icwn, village, or (citain special dis-  !

Parking Authorities should be anaended to climinate one of

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triA. w hich has indh the pov.cr to contract indebfMemss  ;

the two apparently conflicting termination provisions now and the power N Icty inn or base tam o,lh,ted on its found in each act. lehalf.: In siew of the ena, tment of this i nn-t it utional ga um .

Sixteen authority arts prmide for a preliminary period of 'i' ion after II.e en ation of this .mthority. t he .onstitutional i authority operation. Any authority n hich had no outstand provision :nay n.A be npplicabic. I!nnes cr. the anthurity has ing liabilities at the expiratien of its prefirainary perieul i< ""t y rt been Hetivated, and the prescru e of t he inn tit utional

.utomatically terrninated. The Thensand Isla nd < Ifridre p:mision raises a eturstion as to the runstitutinnality of .my Anthority was given a one ycar preliminary period. Seven s etivgat. this la t e- da t e . In a.blition i: is in Ic anthorities, incInding the Iluffalo SewerAnt hurity. t he Plane .fonhted that this' authority omiel all its lam,Is in the marlr:

tarium Anthority the Ilothpage Park Anthority. the .l..ncs. at any time hereafter nithout first bas ing h gi-latiu re Ticas h Staic P;ulway AnthorityMdit ,n. ugh 1: ridge and u lida t ion.

Timnci Anthuri*y, tiie I:Imira Parking Authority and the It does not appear in be a desirable policy for the Sta!c to Pn Lshil! Parking Anthority. have fiseg ear prrlimir ary 1.cr create an authority which can be activated by a local casern-'

inds. The Niagara l'enntier 1%:t Anthority has a six ye:n-raent at any time in the future. After several years its en-initial perind. and the Sy racu'c Pa: Ling A nthurit- 1.a s , abling act may hase become outmoded and the conditior.s ten y ea r prelimina ry per i =l. The !!r ie. 'llon v oc aint a sn.m.la ,

which cause Iits creation may have been substantially altered.

8 'onnt t Water Anthm ities were all a reaf nl for att initial c.,.~,

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Jerieny of t u ch e 3 ear % atol t he yamn t %nnty }; rids 3 p h -bn M%t%mdhMm%. . ,

onty was creata .1 for a fifteen yea r preliminan g.crind Th.

Im i

104

, It is recommended that the enabling act of the Albany w hich had no such liabilitics should lx considerel inoperative Light. IIcat and Power. Authority be repealefL -

ami as a result shonhl be tenninatnl unhn the Ir;:islat ua r It wonhi app at that an antinerity winc h .fors nor corn- sgwilically continues it.

menre ojerations within a seasonal.le tirne after its en ation Obligations of authoritics in the form of State or Ibra!

chouhl f.e subject to Icgist.itive in icu arn! numsiderati.m government advances should not be considere] as liabilitics If an author 3ty is unaMe within a reasonal.fe period of time for this purpose. If an authority has not been :ulfi/icntly to undcriate the puriers for w hich it was ricat.,I. it, er,'ns active to assnine the usual chligations of a going unkttn, it h6 cal to asstme that a se exarnination of it.< tmrpows ami shoubt be roguiral to rcturn to the Legislature for uuthoriza-Ms corporate ciraracter wouhl bc <hwirable. The- cirrum. tion to continue. Obviously there is no pur ese in the State

_ Mances ami conditions which may have existed at ild 1nne or pennitting the indefinite continuation of. an au oritt merriy ..-

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an authoritfs treation may"have changol. or the enabling ai t because it owes the State or a local governinent. for monics j cf the authority may have Icen defcetite in some cr urial advanced to it. If the authority is not. actually op6rative, it c respect will y aluce no revenue and will in'all likeliho.d haire no )

If an authority is given indefinite life, it may not begin way obpay ing such advances. , . ,'

operations enfil long after its creation. P.y this time .sm h it is recommended that all authoritic~s hereaftci ^created,.9 .

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operations may no longer I,e riccessary or desiraf Ic. Ity cor.

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be given a preliminary period of five years in which to com- l ating an authority for an'iridefinite period of time the State , mence operations. An authority which has no liabilities other ,

Irgislature Joses an efTective incasure of nmind over it If ~ '

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j than governmental advances outstanding at the cuid of this .

such an authori,ty lies dormant for a long period, the initi. '

ceriod should be automatically terminated. These provismns ative for its activation is rernovnl from the Legislature an.1 should be included in a general section in the Public Author-placed in the hands of th'e~ official w ho is )mpqwcred to ap  ; ities Law applicable to all authorities hereafter created.

) point. the authority lyoant In addition it would seem that the Recommendations on the final termination of thou author- ,

lack of a trecnt Icgislative rnandate might seriously a! Tert the  ; ities which continue t>eyond their preliminary periods are ' ]

marketability of an authority's immds. j made elsewhere in this report.

It uonid seem desirable to pennit the Legislature to vesico  ; 2' the s!atus of any authority w hi< h. for one trason or anot her. An horitics Terminated l

is not operatise nt the expiration of a reasonahic period-No authoritt in New York State has tenninatol as a rnnli Five 3 ears appears to be a n asonabic period of time within " 'I all of its lamds and obligations from its of itgn-which to expect an authority to become operafisc. A shorter i own revemics. e Saratoga Springs Authority retirol all of period wonid seem unwise !ccause_of the difficulties u hi. h

- ~ its ontstandinn !=mds in 1%8 but was confir.ned until 19.'G may be encountered in arrang'ing'En ital financing and in i

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t.y an amendment to its act. Before this extension had cv  :.

completing prclmanary surveys. - pin,1. t he authority sohl a new I ond issue w hich extendnl its if Icgislation were to n,guire that an authority 1 c operalis e life for tuenty years. The Lake Champlain Itridgr Cornmis- 2 at the end of sm h a the-ye-ar period, it woubl be c%rntial :,. wion has retirel all of its outstanding I,onds and is now repas -

"etine what is meant by "cperative" and to apply a t .y ing the advanem which it rrreived from t'he'sYtb of VernuEt t herrfor. Any authority w hich is tinly operative would hat e  !

and New Yorh. Only in these instances base authorities in outstanding liabilifics tm h as I mds, notes. ! caws or otim i New York State approachel termination thnmgf the trfire contrart ual of.li; ations I! wonhl base one or more of sin h j rient. or al! obli: ations from authority tv senm s. ~ilouctra.

ty p s of liability if it w er e a going rontern. .\ ny anihor ity nineto n New York Fra!c public authoritics have !=tn tcrmi-

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2 e u p

CERTIFICATE OF SERVICE NO "

32 JtN -3 P 3 :43 Pursuant to the service requirements of 10 C.F.R. 6 2.712 (1991), IherebycertifythatonJanuary3,Mh2/,[,'i,('N i+ t.ta '

I served a copy of the Motion of the Long Island Power Authority for Leave to Pile Supplomontal Materials and the Memorandum of the Long Island Power Authority Concerning Supplomontal Legislative History Materials and transmittal letter via Courier upon the following parties, except whero othorw4so indicated:

• Commissioner Ivan Solin Stephen A. Wakefield, Esq.

Chairman General Counsel 11uclear Rogulatory Commission U.S. Department of Energy One White Flint North Building Forrestal Building 1155E nockvillo Pike 1000 Indopondence Avenue, S.W.

Rockvillo, Maryland 20852 Washington, D.C. 20585 (First Class Mail)

Commiscioner Kenneth C. Rogers Nuclear Regulatory commission The lionorablo Samuel J. Chilk One White Flint North Building The Socrotary of the Commission 11555 Rockvillo Pike Nuclear Regulatory Commission Rockville, Maryland 20852 One White Flint North Du11 ding 11555 Rockville Pike Commissioner James R. Curtiss Rockville, Maryland 20862 Nuclear Regulatory Commission One White Flint North Building Administrative Judge 11555 Rockvillo Piko Thomas S. Moore, Chairman Rockville, Maryland 20852 Administrative Judge Nuclear Regulatory Commission Commissioner Forrest J. Remick Washington, D.C. 20555 riuclear-Rogulatory Commission (First Class Mail)

One White Flint North Building 11555 Rockville Pike Administrativo Judge Rockville, Maryland 20852 Jerry R. Kline

Atomic Safety Commissioner E. Gail do Planque and Licensing Board Nuclear Regulatory Commission Nuclear Regulatory Commission Cno White Flint North Building Washington, D.C. 20555 11555 Rockvillo Piko (Pirst Class Mail)

Rockvillo, Maryland 20852 l

l

. _ _ . .. .- .-. = _ _ . - - - . - . . . . _ _ - . - . . - . _ _ _ - . - . . .

4 Administrative Judge Donald P. Irwin, Esq. i George A. Ferguson Counnol, Long Island 5307 Al Jones Drivo Lighting Company Columbia Beach, Maryland 20764 Ilunton & Williams (First Class Mail) 707 East Main Street  !

Richmond, Virginia 23212 Edwin J. Rois, Esq. (Via Fedoral Express)

Depucy Assistant Gonoral Counsel for Reactor Licensing Gerald C. Goldstein, Esq.

Nuclear Regulatory Commission Office of the Gonoral Counsol Ono White Flint North Building Power Authority of 11555 Rockvil10 Piko State of Now York Rockvil10, Maryland 20852 1633 Broadway New York, Now York 10019 James P. McGranory, Jr. , Esq. (Via Federal Express) l Dow, Lohnos & Albertson '

1255 23rd Stroot, N.W. Samuel A. Cherniak, Esq. m Suito 500 11YS Departtaont of Law Washington, D.C. 20037 Bureau of Consumer Frauds and Protection Rogulatory Publications Branch 120 Broadway Division of Freedom of New York, New York 10271 Information & Publications (Via Federal Express)

Services Office of Administration Nuclear Regulatory Commission Washington, D.C. 20555 (Firot Class Mail) 7 t -

[A lu.

Carl R. 'Schenker, Jr. [

O'Melveny & Mycrs 555 13th Street, N.W.

Washington, D.C. 20004 Dated: January 3, 1992

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