ML20126J993

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Informs That No Significant Change Occurred Since Prior Antitrust Review.No Antitrust Review Needed Re OL Application.Summary of Energy & Fuel Requirements & Ltrs Encl
ML20126J993
Person / Time
Site: San Onofre  Southern California Edison icon.png
Issue date: 02/25/1981
From: Kaplan D
JUSTICE, DEPT. OF
To: Rutberg J
NRC OFFICE OF THE EXECUTIVE LEGAL DIRECTOR (OELD)
Shared Package
ML20126J991 List:
References
ISSUANCES-A, NUDOCS 8105080165
Download: ML20126J993 (12)
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U.S. Department ofJustice Weskuncton. D.C 20D0 2 5 FEB iM1  :

Joseph Rutberg, Esquire Chief, Antitrust Division Nuclear Regulatory Commission -

Washington, D.C. 20555 Re: Southern California. Edison Co., San Diego Gas & Electric p Co.; San Onofre Nuclear Generating Station, Units ~ 2 & 3, i Dkts. Nos. 50-361A & 50-362A De a r Mr . btb$r l

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You hate requested that the Department of Justice (" Department")

n give you its view on whether there has been a significant change since the construction permit was issued in the above captioned

. proceeding that would warrant an antitrust review pursuant to section 10 5 (c) (2) of the Atomic Energy Act of 1954 (as amended),

prior to the issuance of a license to operate the San Onofre Units 2 and 3.

The Nuclear Regulatory Commission (" Commission") issued a Memorandum and Orde r , CLI-80-28, on June 30, 1980, that contained criteria for the "significant changes" determination. In order to be considered significant, the change or changes: (1) must have occurred since the previous antitrust review of the licensee (s); (2) be reasonably attributable to the licensee (s); and (3) have antitrust implications that would likely warrant some Commission remedy.

Based on the factual matters set forth in the information you transmitted to the Department _and other information available to us, it appears that the only potential "significant change" in the situation in California since the prior antitrust review is the limited availability of high voltage transmission capacity to import power from out-of-state generating sources. All of the utilities in the state have had to place increased reliance on out-of-state generation because of the cancellation of nuclear power plants and the limited availablility of other f uel sources within the state.

The three large utilities in the state, including Southern California Edison ( " SC E " ) and San Diego Gas and Electric, currently own or control most of the capacity available for importing power from out of state.

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APPENDIX 1 Applying the Commission's criteria- to this situation, it appears that there has not been a significant change and an' antitrust review  :

is not warranted. 1/ This conclusion is based on the following factors: The.availabilty of transmission capacity to import power was important at the time of the prior antitrust review in much the same manner and magnitude as it is today.- This suggests that there

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has been no change in the situation since the. prior antitrust review. Even assuming the increased importance of transmission capacity to- be a. "significant change" Other itfactors may not be reasonably.

beyond the control of attributable to the licensees.

the licensees, such as the cancellation of planned nuclear capacity

- due to state and local political pressure and the limited ,

availability of coal and gas as fuel, may have been a more substantial contributor to the importance of transmission capacity.

Finally, it would be dif ficult to conclude that the present situation warrants additional conditions on the San Onofre Units 2 and-3 license in order to assure smaller systems in southern California easier L access to out-of-state generation when SCE appears to be fully meeting its obligations under the present license conditions with respect to allowing, or assisting in obtaining, participation by smaller systems in future nuclear generation. l In' 11ght of the above, the Department is of the view that there has not been a significant change since the prior antitrust review.

Accordingly, no antitrust review is warranted at this time in connection with the application for an. operating license -

for the subject units.

R spectfu ly, h/* .O' [f ap a

~ [/  :

Chief, Energy Section Antitrust Division l

1/ The Department filed a Response to the Commission's proposed "significant change" criteria with the Commission on October 10, 1980, in South Carolina Electric and Gas Company and South Carolina Public Service Authority (Virgil C. Summer Nuclear S tation, Unit No.1) NRC Docke t No. 50-39 5A. The Departmeat suggested a different third criterion that would require significant changes in the competitive environment (i.e., chsnges in the structure of the market or in the conduct of the licensee with respect to the construction or operation of the licensed plant) . Even under this dif ferent criterion, the Department views the present situation in southern

California as not constituting a significant change. See also
  • the Comments of the Department of Justice in Response to the Nuclear Regulatory Commission Order of January 15, 1981, filed on February.6, 1981.

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APPENDZX 3 P00R ORIG NAL

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. _ . . . . . . . , . , .. _ _ , , _ . _ . _ . , _ , _ . , . _ . _ _ ~ . _ . . . _ _ _ _ _ . _, ._. _ , _ . _ . , . _ _ , _, , . . . _ _ . . - ,

t t

q P00R ORIGINAL APPENDIX 4 oi '

o

. 8 February 12, 1974 "

l,'

'. i !

I t 1

  • A l 6

Mr. Joseph C. Fackrell, P.E. '

I Executive Director  !

Inter =ountain Consuner Power Association j 8722 South 300 West -

Sandy, Utah 64070 ll i

o ,

Dear Mr. Fackrell:

Intermountain Power Project

Subject:

b I Possible Participation by Edison c{ -

9 Steerine Cet..ittee Censideration ,

i s

i s Your letter of January 10, 1974, advising cf tha }-. '.

y Steering Cc==ittee 's decision to limit participation 2: P this. time in the proposed Inter cuntain Project to the j present me=tersnip, has-been received.

I e

i As we understand it, the feasibility study is  ;. i i

presently progressing based on an anticipated maximum I capacity of 3,000 megawatts, fer which the participants I have fully subscribed at this time. However, if the  !

feasibility study should indicate that capacity wculd be -

i .

available in excess of the anticipated 3,000 megawa::s,  ! 2. ,' '

consideration would be given to other requests , including rX y *;

I Edison 's .

  • g.

u -

We would like very much to receive-the infor-  !

' i-

, nation offered in your letter, as the study progresses.  ; '! e.

a In the meantice, of course, we will continue to maintain > ,i . b, ,

temmunica:icns with the Cities of Anaheim and Riverside .Is Pegarding the status of the feasibility study.

}

9 I'

i.,

.[

,e Sincerely, - t

  • j g StO ut SI:ned . e r 7
9. J. F=gstty '.

I D. J. Fogarty g

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