ML20125C328

Opposition to Central & South West Corp 791221 Request to Quash Notice of Deposition.City of Brownsville Entitled to Explore Same Set of Facts W/Each Knowledgeable Person. Certificate of Svc & Supporting Documentation Encl

ML20125C328
Person / Time
Site:	South Texas, Comanche Peak
Issue date:	12/28/1979
From:	Poirier M, Porier M BROWNSVILLE, TX, SPIEGEL & MCDIARMID
To:	Atomic Safety and Licensing Board Panel
References
NUDOCS 8001080389
Download: ML20125C328 (15)

Text

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UNITED STATES OF AMERICA h

BEFORE THE i1 l

NUCLEAR REGULATORY COMMISSION BEFORE THE ATOMIC SAFETY AND LICENSING BOARD

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cc In the Matter of

)

)

HOUSTON LIGHTING & POWER COMPANY,

)

Docket Nos. 50-498A et al.

)

and 50-499A

)

(South Texas Project, Units No.

)

1 and 2)

)

)

)

)

In the Matter of

)

)

TEXAS UTILITIES GENERATING COMPANY,)

Docket Nos. 50-445A et al.

)

and 50-446A

)

(Comanche Peak Steam Electric

)

Station, Units No. 1 and 2)

)

RESPONSE OF THE PUBLIC UTILITIES BOARD OF THE CITY OF BROWNSVILLE, TEXAS TO MOTION TO QUASH OF CENTRAL AND SOUTH WEST CORPORATION On December 21, 1979 Central & South West Corporation ("C&SW") and Mr.

S.

B.

Phillips, Jr.,

filed a Motion to Quash Notice of Deposition and Response to Motion to Compel Deposition.

They thas seek to avoid the deposition in this proceeding of Mr.

S.

B.

Phillips, Jr.,

Chairman of the Board and Chief Executive Officer of C&SW.

This deposi-tion was duly noticed by the Public Utilities Board of the City of Brownsville, Texas ("Brownsville") on November 23, 1979; was postponed by agreement until a mutually convenient future date; and was the subject of Brownsville's Motion to Compel Deposition on December 13, 1979.

Brownsville hereby 90009054 80 010 80 3N M

. files its responsa to C&SW's Motion to Quash, and requests the Board to order Mr.

Phillips to be produced promptly for deposition. 1/

None of the reasons given in C&SW's Motion to Quash is persuasive.

C&SW primarily asserts that Mr. Phillips' deposition will be duplicative of the depositions of officers of Central Power & Light Company ("CP&L").

First of all, this should not make any difference.

Brownsville is entitled to explore the same set of facts with each person who has knowledge of them. One person reay well have knowledge in detail that another lacks, or the two versions of the facts may differ.

Brownsville is entitled to find this out, as part and parcel of the discovery process.

2/

Secondly, the f act that Mr. Phillips is the Chairman of the Board and Chief Executive Officer of C&SW enables Brownsville and this Board to presume that his knowledge of the facts is different from that of officers of CP&L.

As the attached documents suggest, C&SW has at times been aware of the activities of CP&L.

Brownsville is entitled to explore the possibility that C&SW acquiesced in 1/

To the extent that C&SW's pleading is filed under 10 C.F.R.

S2.740(c) as a motion for protective order, the instant filing constitutes Brownsville's response.

To the extent that C&SW's pleading was a response to Brownsville's Motion to Compel, Brownsville renews the request made in its Motion to Compel for leave to reply, pursuant to 10 C.F.R. 52.730(c), and files this pleading concurrently as a Reply.

2/

At trial, C&SW could hardly object if Brownsville asked the same question to more than one witness.

Yet apparently C&SW feels that Brownsville's inquiry into "ident.fcal subjects" on the part of several deponents is pro-bative of something.

Motion to Quash, pp. 2-3.

It merely shows Brownsville is trying to prepare its case thoroughly.

90009055

. or took an active role in activities reflected in these and other documents. 1/

Brownsville would also note that, to its knowledge, no officer of C&SW has yet been deposed in connec-tion with this proceeding. 2/

C&SW also objects in advance to the kinds of questions it thinks Brownsville will ask Mr.

Phillips.

Motion to Quash, p.

4.

As a general rule, the Board should only entertain these specific objections if and when Brownsville poses these questions. 3/

C&SW apparently would object questions eliciting to "on the record commitments or statements of policy from Mr. Phillips."

Motion to Quash, p.

4.

The current policies of C&SW (and of CP&L, to the extent Mr. Phillips is aware of them) on transmission rates and services, interconnections, jointly-1/

C&SW does not challenge the adequacy of the subject matter description included in the Notice of Deposition.

Yet it complains that counsel for Brownsville did not provide

" specific justification" for Mr. Phillips' deposition.

Motion to Quash, p.

3.

C& SW counsel was informed that questions related to specific documents might be asked, although the documents were not provided in advance.

C&SW is not entitled to a list of specific questions in advance of the deposition.

l 2/

Depositions of Mr. Phillips, Mr. Harris, and Mr.

Wells (also officers of C&SW) were noticed in October, 1979, by Houston Lighting & Power Company and Texas Utilities Company, but were cancelled by agreement.

3/

CP&L interpreted the " settlement negotiations" pri-vilege very broadly in the deposition of Mr. William C.

Price, a vice-president of CP&L. (October 2, 1979). Once Brownsville has reviewed this transcript and determined that the assertions made by C&SW here are comparable, it may seek further guidance from the Board.

C&SW's vague assertion of the settlement negotiation privilege here raises the addi-tional issue of whether the parent company, C&SW, may assert l

privilege of knowledge of negotiations between Brownsville and the subsidiary, CP&L (assuming there are any such legiti-mately privileged negotiations).

90009056 1

. owned generating units, and the structure of organizations such as the Texas Interconnected System, are as relevant to the statutory standard enforced by this Commission as any cast policies of C&SW and CP&L in these areas.

Brownsville l-is entitled to get present policies on record.

Brownsville's Motion to Compel requested Mr.

1 Phillips' deposition take place on January 8, 1980.

This date may become inconvenient or impossible depending on the date of the Board's decision as well as on scheduling conflicts that may arise.

In this event, the Board should require C&SW i

to produce Mr. Phillips promptly at a later date.

For the above reasons, and for the reasons stated in it's December 13, 1979 Motion to Compel Deposition, the Public Utilities Board of the City of Brownsville, Texas respectfully requests this Board to require Central & South I

West Corporation to compel Mr.

S.

B.

Phillips, Jr.,

to appear for deposition on the matters listed in the November 23, 1979 Notice of Deposition in Dallas, Texas, on January 8, 1980, or j

such other time promptly thereaf ter as may be agreed to.

1 Respectfully s

itted, (N\\ C -

Marc R.

Poirier Attorney for the Public Utilities Board of the City of Brownsville, Texas Law Offices of:

Spiegel & McDiarmid

'SSSi!$"in"**.^C?"2*63 90009057

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(202)333-4500 December 28, 1979 l

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?:sse:Ced hereis is a su= mar'r cf our cese:ra:1ces en :he ua sca:v.s cf this =a::er and a ree: - e=da:10 as := the ue:c: andfinalh N

4 step is preparing f:: further discussien vi:h certain 3revesville ci:1: ens.

Cu: pu 7cse i.s := p rride the C':dJ representa:ive := 2 :ves -

ville vi:h adequate C:=pa:$f direc:1ce 44 :: :he =cs: feasible : ached and as := an effering price f:: ch:aisis; pers:ie: of :he 3 :vesvi1*.e preper:7 Oc date, several aspects of :he s: d7 ': ve bee: :erered aepara:e17 as 5:ll as:

l.

he ecece ' s of cpers:i:g :he pr:per:7 have been s: died and feu=d ::: :: supper: a neers-sa 7 cfferi s ;;ica.

This is so stace 1: 1.s i==csaible := qua=:13ly =any of :he benefi:s which will pr:bably resul: f::= is:egrating the operacien cf 1::v=sville i=:: C75.I..

2.

he legal aspec:s have bee: inves:1gn:ed and opinices :e=dered se=e years $s have bee reviewed.

3.

~he :2:t aspec:s have bee: revissed and a pre-sectz:i:n rule.:is; :: the ::s: f:verable =e:hed of c' taisi.:s :pera:ics of 2::v=svt 14 :2=-vise e

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f== various =echeds of eb:21 ing Opera-

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N, tien of 3 cv=sv111e and we are

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f ::ed as to what =inimu= ;47===:s =us:

be..

• iha: =cv :e=ai s is :he fisa=cial analysis f::= veich we ca :nke :: clustems as :: :he =cs: feasible =eched and as :e :he d

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eff ering ; ice.

Se cri:eria =us: include :he fellevirg:

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vered is :he =cs:

re-ces: 3::v=svilla tendim; ::dinance.

3.

Se ; ' cable reacti:ns of :he 2::vesville bend holders.

C.

Se effec: en surplus of ei:her vri:ing off a etusiderable part of :he purchase pr:L:e, c: ef vri:iss off :he swee:e=e: L:

a 1easi=g er :::::ac: purchase arrangn=en:.

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Se effec: cu C 54 ear =ings ci the varicus-

=ethed.s ef b:21 is; the :pers: ice.

'Je p :pese :h:: thia :::cluding aspec: cf :he s:udy =cv p :ceed = der the i==ediate direc:1:n of }ir. Falle: vi:h ene :: =cre fina=cial analye:s such as Sandeen, 12914: c Stevensen :c ki g :

the p :jec:.

90009059

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. T8, Mideto west cor-tee company w

3 Ameng ccher censiders:10:s, cur study veuld includa :he icilcuing:

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Study of all cues:2: ding debe c:d.sances W

with refere=cs== :sde=p:1:n pr:visic s, s

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cu Te:: ;:e=i==s payable,

=c callable issues,

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eccal ces: :s : :1:, etc.

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:he ex:ent pessible, :s=es of institutic al and ether helders of debe issues.

3.

Review :h:: ugh ::::ac:a yi:h inves =es: bankers who placed bced issues and wi:h i sci:::iceal holda:s, difficui:1es '- -=*d-ing =cceallable dabc due :s =arket c:=dL:icts,'

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Mr. R. 3. Phillips Central and Soud Wes: Ccrporacic:

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Thank you for you: 1e: a: cf.r h::a:f 3 cc==e :t:g 5

e cc the 3=wnsvt11e situa: ten. The inic =2:ic which you and Mats p=vided ts = cst helpful, hcwever I a= a: sc=ewha: cf a icss as :c hcw :o p=ceed.

My vist: != 3::wnsvine wid "de =an" was =cs:

cordial and I a= sure da: 51 wtH :en ycu aheu: 1:.

One 61 g da: heders =e is de recutrecen: for SEC

s app =ve any purchase by us of dese p=pe=ies. The

i=ing pts a=und to de cid :=cle=--which is firs:, de chicken c: de egg? Jt Wtison has wr.::e :o Judp Stevensca for help cc deter =t:teg wha: sod cf fc =ula de SEC =t;;h:

app =ve.

I apprecta:e all de help you have give: =e 1: de pas:

and state agat: da: I realtred an ale:g !: was =cs: dit'.cul:

o supply cc=preherstve fipres conce=tsg $e value of de 3::wnsv111e p=per:ies.

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90009065

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B.a 1

. -... - _ ~ --.

UNITED STATES CF AMERICA BEFORE THE NUCLEAR REGULATORY COMMISSION BEFORE THE ATOMIC SAFETY AND LICENSING BOARD In the Matter of

)

)

HOUSTON LIGHTING & POWER COMPANY,

)

Docket Nos. 50-498A et al.

)

and 50-499A

)

(South Texas Project, Units No.

)

1 and 2)

)

)

)

)

In the Matter of

)

)

TEXAS UTILITIES GENERATING COMPANY,)

Docket Nos. 50-445A et al.

)

and 50-446A

)

(Comanche Peak Steam Electric

)

Station, Units No. 1 and 2)

)

CERTIFICATE OF SERVICE I hereby certify that I have caused copies of the foregoing RESPONSE OF THE PUBLIC UTILITIES BOARD OF THE CITY OF BROWNSVILLE, TEXAS TO MOTION TO QUASH OF CENTRAL AND SOUTH WEST CORPORATION to be served on the following by deposit in the United States mail, first class, postage prepaid, this 28th day of December, 1979:

Marshall E.

Miller, Chairman Roy P.

Lessy, Esquire Atomic Safety & Licensing Board Michael B.

Blume, Esquire Panel Nuclear Regulatory Commission Nuclear Regulatory Commission Washington, D.

C.

20555 Washington, D.

C.

20555 Jerome Saltzman, Chief i

Sheldon J. Wolfe, Esquire Antitrust & Indemnity Group Atomic Safety & Licensing Board Nuclear Regulatory LCommission Panel Washington, D.

C.

20555 Nuclear Regulatory Commission Washington, D.

C.

20555 Chase R.

Stephens, Chief i

Docketing & Service Section 1

Michael L.

Glaser, Esquire Office of the Secretary 1150 17th Street, N.

W.

Nuclear Regulatory Commission Washington, D.

C.

20036 Washington, D.

C.

20555

)

Joseph Rutberg, Esquire Joseph J.

Saunders, Esquire Antitrust Counsel Chief, Public Counsel &

Nuclear Regulatory Commission Legislative Section Washington, D.

C.

20555 Antitrust Division Department of Justice P.

O.

Box 14141 Washington, D.

C.

20444 90009066

.. Joseph Gallo, Esquire Roff Hardy, Chairman and Robert H.

Loeffler, Esquire Chief Executive Officer David M.

Stahl, Esq.

Central Power & Light Company Isham, Lincoln & Beale P.

O. Box 2121 1050 17th Street, N.

W.

Corpus Christi, Texas 78403 Suite 701 i

Washington, D.

C.

20036 G.

K.

Spruce, General Manager City Public Service Board Susan B.

Cyphert, Esquire P.

O.

Box 1771 Antitrust Division San Antonio, Texas 78203 Department of Justice P.

O.

Box 14141 Jon C. Wood, Esquire Washington, D.

C.

20444 W.

Roger Wilson, Esquire Matthews, Nowlin, Macfarlane Joseph Knotts, Esquire

& Barrett Nicholas S.

Reynolds, Esquire 1500 Alamo National Building Debevoise & Liberman San Antonio, Texas 78205 1200 17th Street, N.

W.

Washington, D.

C.

20036 Perry G.

Brittain, President Texas Utilities Generating Co.

Douglas F. John, Esquire 2001 Bryan Tower Akin, Gump, Hauer & Feld Dallas, Texas 75201 1333 New Hampshire Ave.,

N. W.

Suite 400 Joseph I.

Worsham, Esquire Washington, D.

C.

20036 Merlyn D.

Sampels, Esquire Spencer C.

Relyea, Esquire R.

Gordon Gooch, Esquire Worsham, Forsythe & Sampels John P.

Mathis, Esquire 2001 Bryan Tower Baker & Botts Suite 2500 1701 Pennsylvania Avenue, N.

W.

Dallas, Texas 75201 Washington, D.

C.

20006 R.

L.

Hancock, Director Robert Lowenstein, Esquire City of Austin Electric Utility J.

A.

Bouknight, Jr.,

Esquire Department William J.

Franklin, Esquire P.

O.

Box 1088 Lowenstein, Newman, Reis &

Austin, Texas 78767 Axelrad 1025 Connecticut Avenue, N.

W.

Jerry L.

Harris, Esquire Washington, D.

C.

20036 Richard C.

Balough, Esquire City of Austin Frederick H.

Ritts, Esquire P.

O.

Box 1088 Law Offices of Northcutt Ely Austin, Texas 78767 Watergate 600 Building Washington, D.

C.

20037 Dan H. Davidson City Manager Wheatley & Wolleson City of Austin 1112 Watergate Office Building P.

O.

Box 1088 2600 Virginia Avenue, N.

W.

Austin, Texas 78767 Washington, D.

C.

20037 90009067

.. Don R.

Butler, Esquire Knoland J.

Pluc kne t t Sneed, Vine, Wilkerson, Selman Executive Director

& Perry Committee on Power for the P.

O.

Box 1409 Southwest, Inc.

Austin, Texas 78'/67 5541 Skelly Drive Tulsa, Oklahoma 74135 Morgan Hunter, Esquire McGinnis, Lochridge & Kilgore Jay M.

Galt, Esquire O ', 0 Congress Avenue Looney, Nichols, Johnson & Hayes Austin, Texas 78701 219 Couch Drive Oklahoma City, Oklahoma 73101 Kevin B.

Pratt, Esquire Linda Aker, Esquire John E.

Mathews, Jr.,

Esquire P.

O.

Box 12548 Mathews, Osborne, Ehrlich, McNatt, Capital Station Gobelman & Cobb

).ustin, Texas 78767 1500 American Heritage Life Bldg.

Jacksonville, Florida 32202 E.

W.

Barnett, Esquire Charles G.

Thrash, Jr.,

Esquire Robert E.

Bathen J. Gregory Copeland, Esquire R.

W. Beck & Associates Theodore F. Weiss, Jr.,

Esquire P.

O.

Box 6817 Baker & Botts Orlando, Florida 82803 3000 One Shell Plaza Houston, Texas 77002 Somervell County Public Library P.

O.

Box 417 G.

W.

Oprea, Jr.

Glen Rose, Texas 76403 Executive Vice President Houston Lighting & Power Co.

Maynard Human, General Manager P.

O.

Box 1700 Western Farmers Electric Coop.

Houston, Texas 77001 P.

O.

Box 429 Anadarko, Oklahoma 73005 W.

S.

Robson, General Manager South Texas Electric Coop., Inc.

James E.

Monahan Route 6, Building 102 Executive Vice President Victoria Regional Airport and General Manager Victoria, Texas 77901 Brczos Electric Power Coop, Inc.

P.

O.

Box 6296 Michael I.

Miller, Esquire Waco, Texas 76706 Isham, Lincoln & Beale One First National Plaza Robert M.

Rader, Esquire Chicago, Illinois 60603 Conner, Moore & Corber 1747 Pennsylvania Avenue, N.

W.

Donald Clements, Esquire Washington, D.

C.

20006 Gulf States Utilities Co.

P.

O.

Box 2951 W.

N.

Woolsey, Esquire Beaumont, Texas 77074 Dyer and Redford 1030 Petroleum Tower Corpus Christi, Texas 78474 i

'/ /

f

. Okt (h H W,.

Robert A.

Jablon Attorney for the Public Utilities Board of the City of Brownsville, Texas 90009068