ML20101N513

City of Cleveland Opposition to Applicant Request That Licensing Board Disregard Certain Arguments of City of Cleveland Counsel in Oral Argument.Certificate of Svc & Svc List Encl

ML20101N513
Person / Time
Site:	Davis Besse, Perry
Issue date:	07/08/1992
From:	Goldberg R, Strother C CLEVELAND, OH, GOLDBERG, FIELDMAN & HJELMFELT
To:	Atomic Safety and Licensing Board Panel
References
CON-#392-13082 91-644-01-A, 91-644-1-A, A, NUDOCS 9207100010
Download: ML20101N513 (7)

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COLFLILD 05NitC 4 UNITED STATES OF AMERICA P~ NUCLEAR REGULATORY COMMISSION 92 J1 -8 P4 :02 BEFORE'THE ATOMIC SAFETY AND LICENSING BOAR,D

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E LIn the Matter of' ) Docket Nos. 50-440-A 7" ) 50-346-A OHIO EDISON COMPANY )

(Perry Nuclear Power Plant, )

Unit 1, Facility Operating

)

L.icense No. NPF-58) )

)

THE CLEVELAND ELECTRIC )

-ILLUMINATING COMPANY )

THE TOLEDO EDISON COMPANY )

(Perry Nuclear Power Plant, ) ASLBP No. 91-644-01-A Unit-1, Facility Operating )

License No~. NPF-58) )

(Davis-Besse Nuclear Power )

Station, Unit 1, Facility )

Operating License No. NPF-3) )

)

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CITY OF CLEVELnND'S OPPOSITION TO APPLICANTS' REQUEST THAT THE LICENSING BOARD DISREGARD CERTAIN ARGUMENTS OF CLEVELAND'S COUNSEL IN ORAL ARGUMENT Pursuant to the Order of July 1, 1992, the City of Cleveland, Ohio rnsponds'to " Applicants' Request That the Licens-

'ing Board Disregarl Factual Issues Discussed During the Oral Argument."

Applicants err in proposing that Cleveland counsel's arguments at page 374, line 18 to page 376, line 9 of the tran-

-script of the oral argument of' June 10, 1992, be ignored by the ii Board in its consideration of the bedrock legal issue. Appli-cants contend that this argument " addressed factual issues concerning the-existing commercial relationships among the 9207100010 920708

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• parties" and is therefore not relevant in determining "the Commission's authority under Section 105(c) of the Act. . . . .

First of all, page 375, line 16 to page 376, line 9, cannot be onstrued to come within the rationale Applicants assert for disregarding it. There Cleveland's counsel explained the application of the United States Supreme Court's Otter Tail opinion where anticompetitive violations were found "without regard to what the cost of the power might be." As Cleveland's counsel there argued, Applicant's legal contentions with respect to the necessity of making relative costs determinations before license conditions may be applied cannet be squared with the Supreme Court's holdings in Otter Tail.

Moreover, the portion of the transcript referred to by Applicants discusses the Applicants' failure to reconcile the Licensing and Appeal Boards' explicit findings relating to tr >'s-mission facilities constructed to transmit the power generated by the nuclear plants (as opposed to the generation plants them-selves) with Applicants' arguments on the " bedrock legal issue",

and responds to Judge Bechhoefer's inquiry whether the City of Cleveland could have decided to build a transmission line "from say, Cleveland to Miagara Falls, or wherever you get cheap power."

Nothing in these arguments of Cleveland's counsel in any respect offends the bedrock legal issue's arguendo assumption that the nuclear power from Davis-Besse and Perry plants is high cost compared to other sources of power in the relevant market, appropriately measured and compared or introduced factual mat-

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.t e r s . .Neither do these arguments by their terms speak to the

" existing commercial relationship" between CEI and Cleveland (a topic not forbidden ir any event). As Cleveland's counsel pointed out, by revson of Cleveland's non-access to CEI's trans- J mission facilities prior to the antitrust license conditions, Cleveland was compelled to purchase power only from CEI regard- ,

less of the cost of CEI. power (page 374, line 8 to page 375, line i 4).

Counsel's arguments stated no more than what the Licensing and Appeal-Boards found as to Cleveland's transmission options in making their determinations regarding CEI's antitrust conduct and its adverse impact on Cleveland. See e.g., 10 NRC at 328. Applicants agreed that in considering the bedrock legal issue, it is to be assumed that Applicants' anticompetitive conduct as found by the Licensing and Appeal Boards is unchanged.

Thus, likewise, these matters referred to by Cleveland's counsel must be assumed accurate'for present purposes. Surely, Appli-cants cannot be asserting that in rendering this Board's decision ,

on the bedrock legal issue the Board must ignore the findings of fact-and-conclusions of law of the Licensing and Appeal Boards.

Even if these facts were not required to be accepted by this forum'as true, they present a scenario that as a matter of logic completely undercuts Applicants' contentions, which Appli-cants assert as a matter of logic are necessarily correct.

Cleveland, therefore, opposes Applicants' request that Cleveland counsel's arguments at the above-referenced portion of i

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the transcript of oral argument be ignored by the Board in connection with its consideration of the " bedrock legal issue".

Respectfully submitted,

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Reuben boldberg Y Channing D. Strother, Jr. -

David C. Hjelmfelt B. Victoria Brennan Goldberg, Fieldman & Letham, P.C.

1100 Fifteenth Street, N.W.

Washington, D.C. 20005 Telephone (202) 463-8300 Danny R. Williams Director of Law June W. Wiener Chief Assistant Director of Law William T. Zigli Assistant Director of Law City Hall, Room 106 Cleveland, Ohio 44115 Telephone (216) 664-2000 Attorneys for City of Cleveland, Ohio July 1992

UNITED STATES OF AMERICA  !

'i)hI NUCLEAR REGULATORY COMMISSION

'92 JLL -8 P4 :02 BEFORE THE ATOMIC SAFETY AND LICENSING BOARD

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In the Matter of )

)

OHIO EDISON COMPANY )

(Perry Nuclear Power Plant, ) Docket Nos. 50-440-A Unit 1, Facility Operating ) 50-346-A License No. NPF-58) )

)

THE CLEVELAND. ELECTRIC ) (Suspension of ILLUMINATING COMPANY ) Antitrust Conditions)

THE TOLEDO EDISON COMPANY )

(Perry Nuclear Power Plant, )

Unit 1, Facility Operating ) ASLBP No. 91-644-01-A License No. NPF-58) )

(Davis-Besse Nuclear Power )

Station, Unit 1, Facility )

Operating License No. NPF-3) )

)

l CERTIFICATE OF SERVICE l I hereby certify that a copy of the foregoing CITY OF CLEVELAND'S OPPOSITION TO APPLICANTS' REQUEST THAT THE LICENSING BOARD DISREGARD CERTAIN ARGUMENT 3 OF CLEVELAND'S COUNSEL IN ORAL .

ARGUMENT has been served upon the parties or their attorneys on the attached Service List, this 8th day of July, 1992, by hand delivery to those persons located in Washington, D.C. and Mary-land and by Federal Express to persons located in other states. ,

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Reuben Goldberg ,/

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UNITED STATES OF AMERICA NUCLEAR REGULATORY COMMISSION BEFORE THE-ATOMIC SAFETY AND LICENSING BOARD

)

In the Matter of )

)

OHIO EDISON COMPANY )

Docket Nos. 50-440-A (Perry Nuclear Power Plant, )

Unit 1, Facility Operating ) 50-346-A License No. NPF-58) )

)

THE CLEVELAND ELECTRIC ) (Suspension of ILLUMINATING COMPANY. ) Ant trust Conditions)

THE TOLEDO EDISON COMPANY )

.(Perry Nuclear Power. Plant, )

Unit =1, Facility Operating ) ASLBP No. 91-644-01-A License No. NPF-58). )

(Davis-Besse Nuclear Power )

Station, Unit 1, Facility )

Operating License No. NPF-3) )

)

SERVICE LIST i

Joseph Rutberg, Esq. Office of Commission Appellate Office of.the General Counsel Adjudication U.S. Nuclear Regulatory U.S. Nuclear Regulatory Commission. Commission One White Flint No, Rm. D19 4350 East-West Highway 11555 Rockville Pike Bethesda, MD 20814 -

Rockville, MD 20852 Anthony J. Alexander, Esq.

Janet Urban, Esq. Vice President and General U.S. Department of Justice Counsel Antitrust Division Ohio Edison Company

--Transportation, Energy and 76 South Main Street

' Agriculture Section Akron, OH 44308 Room 9816 JCB 555 4th Street, N.W. Gerald Charnoff, Esq.

Washington, D.C. 20001 Deborah B. Charnoff, Esq.

Margaret S. Spencer, Esq.

David-R. Straus, Esq. Shaw, Pittman, Potts &

Spiegel & McDiarmid Trowbridge 1350 New York. Avenue, N.W. 2300 N Street, N.W.

Suite 1100 Washington, D.C. 20037 Washington, D.C. 20005-4798 2

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

-;. e; James P. Murphy, Esq.. D. Biard MacGuineas, Esq.

Colleen A. Conry, Esq. Volpe, Bosxey and Lyons Squire,fSanders & Dempsey 918 16th Street, N.W.

1201 Pennsylvania Avenue, N.W. Suite 602 Post Office Box 407 Washington, D.C. 20006 Washington, D.C. 20044-0407 Mr. Philip N. Overholt Kenneth L. Hegemann, P.E. Office of Nuclear Plant President Performance l American Municipal Power-Ohio, Office of Nucleal Energy l Inc. U.S. Department of Energy,  ;

601 Dempsey Road NE-44 l P.O. Box 549 Washington, D.C. 20585 i

)

Westerville, OH 43081 Steven R. Hom, Esq Administrative Judge Office of the Generc; Counsel G. Paul Bollwerk, III U.S. Nuclear Regulatory y Atomic ~ Safety and Licensing Commission /

Board One White Flint No, Rm. 15D10 i U.S. Nuclear Regulatory 11555 Rockville Pike j Commission, Rm. E402A Rockville, MD 20852 4350 East-West Highway Bethesda, MD 20814 John Bentine, Esq.

Chester, Hoffman, Wilcox &

Sherwin E. Turk, Esq. .Saxbe Office of the General Counsel 17 S. High Street i U.S.-Nuclear Regulatory Columbus, OH -43215 '

Commission One White Flint No, Rm. 15H2O 11555 Rockville Pike Rockville, MD 20852 Administrative Judge ~

Charles Bechhoefer Atomic-Safety and Licensing Board U.S. Nuclear Regulatory Commission, Rm. E413 4350 East-West Highway Bethesda, MD 20814 Administrative Judge Marshall E. Miller, Chairman Atomic Safety and Licensing Board 1920 South Creek Blvd.

Spruce Creek Fly-In l

Datona Beach, FL 32124 i

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