ML20114E697

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Confirms Inquiry Re Status & Interpretation of Antitrust License Conditions in Proceeding 60-415-57
ML20114E697
Person / Time
Site: Grand Gulf  Entergy icon.png
Issue date: 09/22/1978
From: Mcdiarmid R
SPIEGEL & MCDIARMID
To: Urban J
JUSTICE, DEPT. OF
Shared Package
ML20114E688 List:
References
NUDOCS 7907110337
Download: ML20114E697 (7)
v • d • e


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Janec i.,rtan, Esq.

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li:ed to sell partial require =en:3 pcwer a: an TERC rate to

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and Greenwccd, Mississic= . ..

On July 10, 1977, Clarksdale *: led a Peti:icn to intervene in the FPC decke in vn:ch MPs; had filed :ne interconnection agreement witn Clarksda'.e en June 7.

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ditions to its AEC license and that in the t.". e ' . . . e . ~. ~. . . n. a. c . .' . . a g . *. *. . '

view cf Clarksdale

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agreemene is inadequate and that it will seek :..e addi:icnal service schedules w

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which are believed necessary and unich i:

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alia, sna: 30 far as Clarksdale's reccrds snewed, nc :-der Of a.a.-..c.'r a..'. .. . . . a 1 .d ",, w .' .' ". e 6' c .' .' a ". . . .' . '. a ^ ". e. a. . . ~ada.

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.. * . ~. a. . a. s . . . . r- o . . . . a s .' . . , .. a s e lead pcwer and energy 'r:n MPs* under MPLL's wnciesale f *ed rate.

Mav.er '4e: ster nc ed :ns: "'.srkeda'.e wcu'd nave :a:a-

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. . Janet Urban, Esc.. September 22, 1978 1

a resttit cf the national policies which had deprived Clarksdale of the gas supply upon which i: had relied in the constructicn of its generatien, and inquired as to the transmission rate which R?s* would apply to the sale of unit

capacity by Clarksdale er purchase by Clarksdale to ce frem c her entities interconnected with the Middle Scuch Transmission System. On August 13, 1977, Mr. Lutken, President of MPs*, respended to Mayor Webster suggesting that Clarksdcle had never expressed an interest before in ,ar-ticipation in the Grand Gulf Unit and therefore participatien woud be difficult if not i=pcssible but na: the Cc=pany was -

willing :o discuss the matter further.if desired. The letter suggested : hat a better epproach =ight be to censider the ecssibility of su =Ivane. Clarksdale's needs :em=crariiv.

pending the planning and c nstruction of fu:ure generating facilities and tha the present inter:cnnec::ca agreemen:

provided a schedule for that. He later noted, hcwever, that '<

energy availa:1e under these schedules wculd be at the incre-

= ental rate for the entire Middle Scu n System, then esti-mated to be in a range :etween 5.0 and 67 per .swh. The Company offered := consider.the purchase cf Clarksdale's excess capacity for .eakinc. . cur rcses and rec.uested addi-tienal infor=atien.  :: also stated its willingnese tc deve-ic; a propesci for ::ansmissien service to Clar.'ssdait and requested an idea as te the maximum quantity cf pcwcr under c .a n s .' ~' e . a ... ' .. a.a. '. "..'.a. .. c .' . . . ~a

. . ..' ' .. e . . . ...e c . .' .. v .' ..*.

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  • transmission sys*e3.

Mayer We:s:er respenfed September 3, 19 7, again

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Gulf plant, and requesting an cpper: unity for Clarksdale :

purchase base 10ad electricity ericed at its appropria e c:s:

cr to purchase approxima:ely 19.5 =c;awa::s of capacity frc:

Mississippi ?:ver s L gn: a: estabitshed TPC wnciesale ra:es.

Several meetings were held :etween Clarksdale and M?s*,

ceginning en Cet::er 16, 19 7'. prepara:Ory to that mee-ing, Maver We: ster had furnisned to Mr. Lu: ken a letter cf Oc:: er 18, 1977, specifying in scre detai. seme of the matters whi:n Clarksdale wished to achieve. Clarksda'e has no vis: ::

4'

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  • at these series cf meetings, but i: is clear tha: no effer cf participa:icn in Grand Oulf has been Or is li.<ely to be made; that MPSL has declined :: purchase ;cwer er energy fr==

Clarksdale er te sell base 1 cad ;cwer er energy ce pcwer and energy under L:s TIP.C filed rate :: C*arksdale even theugh it can be shown that such transactices woulf be advantagecus :=

its sharehciders; bu: MPs* did file a pr:pesed transmissica

Jane: Crean, Esq. Septemcer 11, 19 3 r$

rate for Clarksdale en August 23, 1973, in FERC Cccke ::c .

IR73-553, tec.e:her with a similar rate for the City of .

Greenwced, M:ssissicc.i .

in ::ccket E 17 9-5 8 4. While Clarksdale believed certain aspects of tha: rate filing te be cypressive and unjus: and unreascnable, and filed a Prc:est, Pe :::en ::

Intervene and Recuest for Cne-Cay Suspensica en Septe cer 15, 1973, Clarksdale aisc believed tha:  : would te scle :: uti-

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frem the extremely high energy costs wtich it was # creed to incur purchasing hign ecs: cil to ccerate its units in a situatien wnere base icad pcwer and energy were nc: avaiiacie frem any c her source. Consecuen !v, Clarksdale entered an a q . a. a. . a. .n . v .' ..'. '. a. C.4 .v c '

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purchase of sc=ewnat :cre than 14 megava::s of capaci y, and t '.. a. d a. .' .* v a.. -v. ~ .# ~..'. a . ,c w a. . ~ .nd*

a...a.. ,.v ( .' . . ".n .' . c .a n . . s c . .' - .. m. ,'

frc= *.a'av.e::e to MPs. over the s"s em of g ...4 . .4

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. . .... n

...a.. .... .,4.c. . .. s . .. . . . .s pcwer .. e and

. . . . energy as,,quickly a cc....., .. , 4 4,n .c as,,e pcssible, and aise ine" ired

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cperations, Clarksdale furnished MPs* a progesed reurly sche-

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been able :: werk cut a way to accer.medate b.v askin, c u .' s . s . . a < . . a. .- =- * ' .. , . . . . .- ... a . . .v , ..s c.-.rc - a. . e a .' .' .' .' .' * . a. , ..

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services of *cuisiana ww Pcwer .w & Li,h: Cc c.anv. er c:her entities

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i. Jane: Orcar, Esq. <septe==,; :2, '373

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l By tele;hene conversatien Of Septe=cer 19. ;??2, however, MPEL advised Clarksdale that i: vculd ne te possible under any circu= stances to receive energy fr:=.32;f

' Stat:s until ar. Inter:cnnecti:n agre;e=ent :etween M?sL1and Gulf States could be' worked cut, and that this neget:sti:n might be quite lengthy. hus, MPs* ! suggested tha: O'arksda'e (cr; Lafayette) centract wa-h icuisiana Pcwer i Light f:: se r- -

vice under *PEL's transmission senedule in add::::n :: :he transmissien ra:es, ter=s and cend :::ns with vni:n Clarksdale wculd have to cc= ply airyady with Ocif States and MPEL.

Since none of 01arksda'e's advisors ::c'd understand a legitimate basis 'er such pcsitten, piarksdale, by le :er Of Septe=cer: 20,'1973, ' ' ' '

requested a written explanati n of MPsL's

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such a wri: en explanation, but at appr:xt:stely 5:00 PM hat afterncen, sta ed that r... . .y .s .a , ....g.,.

. . . . . 33.s . .. 3, inas=ach

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such a le::er. ,

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As may be seen "r:s the accve, fespite diligent applicati:n and su stantia**y =cre actres;cndence than is cutlined accve, althcugn 0*arksdale has requestof who'esale service en a partial requirements basis under TI?.0 tariffs, MPEL has declined :: prev;de such service, a ;csitien wnien O'.arksda*e believes incensisten w;;h M?s*'s :=*igatiens u rder the License C nditi:ns. A1 heugh Clarksda'e 'and ceners;

.s s.a.s..n have repeat, ed'y s ..aa. a. .

reques...u.c t,ed,a.::a: an effer :f par-

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. . . .m..., a.d Clarksdale has been given ne ressen :: expe : ::at'sa-t an t

offer w

e .4 ..s will.a.e

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.tten...se. wnichlClarksdale

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e*1 eves ::

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althcu dule, gh 1: hasMPEL ch nas sen finally:: interpre: f: led its a transmissi:n

serv :e senedule servi:einsche- seen a way as to effectively preclude the:acility Of ~' ark:da'e :=

cetain cac.act:v. and energy which wcuid :e ec:nes : f:: .

Clarksdale even v'th the payment Of two " pancake

  • transmissica rates, insisting tha: Clarksdale en:er in : an agree =ent wi:h its cer;ces:e af'i'iate ;Pn; as we'1, and pay both of these M ddle Scuth "tilities' affiliates even tucugn the Middle Scuth System 1:self, vnich is believed :: have an inter:ennection agree =en with Culf States, per= :s a free-

.ficwing w . c u.g .w. ce,n, a.. .. trally

., .. 4.s c;e, rat.e,d tran.smissien a.. ..a.es . . .w cpera:ic,a :ver and Clarksdale :elieves :his, as well, :: be

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MPnL's li:ense cligations.

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. . l Janet Ceban, Esq. Septe=ter ::, I? 3 s e .v a.

Cn =ehalf cf the *ity cf "larksdale, this v.?,1

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herein, to :e consisten u."....*..'....'...%.=.-a. ." a'.' . . , c " . . . . . a. '

vi:h the agreemen: reacned-te:veen Justice and Co*at*.=ents. If the Department MPEL emecdied as the Grand Gulf License dces te'.ieve these ;cs:. :. ns

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a ,'m.4 .s n. ist a .ma:= , te. consistent with 1: cense a .... e n . 4 ,. ,.....

celiga:icns, w,.u..a I believe ::a:, 1:

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Section'.'05 tiens rev' sed. of the A::mic Energy Ac: Of-1954, and i:s ;csi-t.' ons a -a. I' the Oepart=ent :elieves that these ;csi-wi.'.'. eq"es*.

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Department dces in such si::ati:ns :: enforce its agreemen:s.

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