Text

Requests Addl Info on Util Generation Projections,Settlement Agreement & Anaheim & Riverside Integrated Operation Agreement
	ML20126K012
Person / Time
Site:	San Onofre
Issue date:	10/18/1979
From:	Toalston A; Office of Nuclear Reactor Regulation
To:	James Drake; SOUTHERN CALIFORNIA EDISON CO.
Shared Package
ML20126J991	List: ML20126J988; ML20126J993; ML20126J997; ML20126K001; ML20126K005; ML20126K010; ML20126K012; ML20126K018;
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	NUDOCS 8105080262
	Download: ML20126K012 (5)
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APPENDIX 15

, 6c.T IT Mh' 1

Docket Mos. ~ 50-361 50-362 ,,

l'r. 'a.:ss H. Drake Vice President ...

/rk' Southern Cn11fornia Edison Co.mpany P. O. Box 800 *~

~

2244 Walnut Grove Avenue Rosemead. CA 91770 ".

Dear Hr. Drake:

SAN 0:iOFRE NUCt. EAR GENERATING STATION, Uti1TS 2 a 3 10, 1979 answers Your counseT furnished by tra&ittai Tetter of August to questions we had asked with respect to the Ve thank youoperating Ticense for your clear and an rcview for the captioned nuclear units.1:e have now revieued the answer complete response. Cased on this review, we would appreciate references you referred to.it if you could now furnish us with some some of our questions as follows:

1. Please furnish copies of Edison's generation projections, for as cany years as they tiare projceted, for each year projections were made beginning in 1973 and ending tiith the latest proje: tion.

2. Please furnish a copy of the Settic ent A;res. :nt and associtted coordination or po,;ar saies agraecants 1:hich Edison entared into with the Anza Electric C: operative, Inc.

3. In the August 10, 1979 response to our questions, counsel for Edison stated that the Anaheim and Riverside Integrated Are Operation Agree ents (10As) had been accepted for filing b 2nt r.2de by FERC which so, was there a final Order o? State:If not concluded, please str: tri:e you could supply us .with? F.as the events and schedules which are yet to take place. If Riverside or Anahef= taken any services under the IDAs?

so, please describe briefly what has taken place.

4. Have 'any furthat significant actions taken place withIf respe:t c:,

to IGAs between Edison and other California cities?

please describe triefly and supply relevant docu ents.

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APPENDEX 15

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shelved, the Suncessri pr;ici;=:

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h 7. Please describe agreement on a cc:rdir:ted trar.scis:irr.Tthe ar do:u=ents.

6. UnbrSe:ticn12.2of'theAnaheicor.F.ivarsideIC d are of the parties.

calculated as a percent of annual peak City's capacityIs(rather its Edison's than load)that opinion to determine this is a properthe C responsibility.

detemination tihen a City's capacity resources exc Is it anticipated that~ this section of the 10A anriual lead?

would be arr. ended if and sehen the City's capacity e Does Edison consider that this catho peak annual load?reseive responsibility calculation cE discouraging e City f. rom becocing self-sufficient 7.

Under Section 5.5 of the 10A a City's installed res ~

are subtracted fro = f ts capacity resources to obtain its Then, under Section 15.1.1 of the 10A, capacity credit. hdl Capacity Credit is used in establishing This cethod of demand and energy require ent appears '

- "r. James hD drNeectsj A City's spinning reserve requira .ent risuld be eq .

(1)its full installed reserve require:ent and, to cnargy associated tiith the reserve portion of a ba (2) unit would not be credited to City.

load Tnis latter effect trou1d be particularly significant For for exa ple, nu: lear units which would noma 11y te. base loaded. ,

if the it.sulled reserve requirensntVare 20%, it appears a City t::uld only get credit'for 80% of the energy portion of a nuclear unit.

principles, it appears that Edison eculd l reserves from other less efficient units.

rationale for the method used in the 10A for creditin)

-f City's carscity resource. ?

=ethod ered in this detemination? :

S.

Under Se: tion 1C.2 of the ICA, Edison supplies Contrac

,- to replace energy frca City resources 1hich Edison does

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APPENDEX 15 s '::sd ~. cit?,tr of tro rethods:

u) L. 67.'s %:..: _:t E .: y 7 r t, --

(2) City Incremental Cost Edison's Contract Energy Cost is based en the cost of Ed conventior,a1 cil-fired, co-bustion turbine and cc:bined-cycl generation, i.e., the c:st of intercediate and peaking g which would presu ably have censiderably Thus, during higher ifght energy Toad costs than Edison's base Toad generation.

conditions when Edison is operating its ba City's base load generation which cay ha For exa:ple, Edison's intemediate and peaking generation cost.

assu=e that during an off-peak load condition. Edison Contra Energy cost is 35 cills, Edison's incre. entalUnder energy cost is 20 mills and City's .increcental cost is On 22 a cills till generation in place of City's 22 cill generation.

split-the-savings basis, City oculd be charged 21 mills.

Ho,tever, under the ICA, City would be charged at 35 cf11s.

Please explain the rationale for the use of Contract Energy Cost instead of a split-the-savings basis.

~

1:e understand that under the 10A a City ray choose another cathed of paying for Contract H..:ever, it Energy t appears thatrathe than Edison's Contract Energy Cost.

this option is not apprcpriate for a City with onl generation.the illustration given above, City's in:re antal cost c jump cuite rapidly be:ause with partial generation the City would be into its very high cost peaking generation whereas As an Edison would still be using its base load generation.

illustration, when Edison's incre: ental cest is 21 tills City's incremental cost could be 45 cills and Edison would cating a 24 cill profit under the ICA.

City would buy partial requirement power instead of its high cost peaking units.

su:h peshing units if under City's control truld be during extrace peak load periods in order to reduce the de-and charges under the partial requiremant rate schedule. .

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RPPEN08x 15

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E :. . . . j l 1ead periods, City would nevertnaisss have es p:./Tk:.::. ::. pl) they had been dispatched. l appropriateness of this type cf pricing for a partial r::l Frcn what bssts cr :;:-: ting principles did th: '

purchaser.

two pricing methods,.f.e., Edir: .'s Centract Energy Plc::: Cost or l alternatively City's Incre .ontal Cost origir.ata? 100/(100-L) of furnish the separate co:ponents (FC, F?., OC it is available. .

9.

With respect to the inaheim and Riverside requests for from the Paio Verde Nucient Plant, Edison responded that capacity of the Palo Verde to Devers 500 ky transr.issio would be utilized by. Edison over a period of tice for Palo Verde Units 1. 2, and 3, for additional units in Arizona, for acquiring a portion of the Salt River Projects interest in Palo Verde and for participationi in the second D.C. tie to t fiorthwest. .

i If Edison declines to furnish fim transmission serv outside in the future of its itstransmission reta.11 service facilitiesarea r.ty become on theloaded, basis i

th fir. Ja=es Hgd;Fatc a t conditions, if any..puld it offer fim tran services outside its service area 7 R.' L.1:itchs11 in his testicony in the FERC -

Ue r.ote that f'.r.

Doc!:st E-7777 states:.

"ThebasicressenforEdis:n' ter= fir:

sir.abilitytooffertran long this line was its need to transmit 1370 I"l of po. car fr:-

its share of Palo Verde Units 1, 2 and 3, and its planned In shares for participation in Palo Verde Units 4 and 5.

fact, Edison's planned participation in Palo Vcrde Unit:

, 4 and 5 of 790.14, plus its 530 ;"4 participationbility in talo ,

. Verde Units 1, E and 3 util exceed the transfer capa l

' cf the Palo Verdc-Devars line, and will re:uire constru::Un l of additicnal transmisshn facilities frc: Palo Verde lt Southern California.*

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Did Edison recognize"at the Isties -

of it Edison's its initia /

carry out the functions which it itenized?

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APPENDEX 15

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l Under the ICAs with Anaheic: a.r.s F.tverside, '.::uid O.e tr:.:.L:. h require ents frs: Talo Verde 5: cr.y differant if F.tverside and Ar.shet:n had acquired a por-ica of Salt T.fy:r Fr:!s:i'i !! it htir::t in Falo Verde it.stsid of Edh:..* F1s:se expl:in.

Edison's view that the citics c: 1d have and sh: eld hav their cr,en transsission facilities, separate fr:c th:se of Edison to obtain Palo Verde Participation?

10. Mr. R. L. Mitchell in his testir.sny before FERC in Docket fio.

E-7777 indicated that Edison had not as of then received right-of-way rights from the Eureau of Land Manage ant forHa trans=ission rights yet? lines fro:s Palo Verde.If so, were there any cond -

transmission rights of others?

Please respond to the above questions and requests at your earliest opportunity so that we can continue our review in an expedited canner.

Sincerely,

'A'/ A. L re.k. ton Ar;11 Tealston, Chief re. ar Su; ply ..r.: lysis Section .

Ar.titrust i Ir.d. c.ity :. G:~oup Office of i;u:1 car T.eheter T. ;ulatten Distribution:

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APPENDIX 16 Southern California Edison Company e........,

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. . : . ". . 1 - . . . c o . . s Februar/ 4, 1980 C. S. Nuclear Regulatory Commission Washington D. C. 20555 Attention: Argil Toalston, Chief Power supply Analysis Section Antitrust & Indemnity Group Office of Nuclear Reactor Regulation Gentlemen:

Re: Docket Nos. 50-361 and 50-362 In reply to your letter of October 18, 1979, I enclose Scuthern California Edison Ccmpany's response to your ten questions.

Please let me know if you wish any amplification or additional information. I look forward to hearing from you.

Very truly yours ,

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Mr. Jack Goldberg j cc:

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APPENDZX 16 4 RESPONSE OF SOUTHIRN CALIFORNIA EDISON COMPANY TO OCTOEER 18, 1979 QUESTIONS OF UNITED' STATES REGULATORY COMMISSION, DOCKET NOS. 50-361 AND 50-362 Resconse to cuestion 1 We are' furnishing _ copies of Edison's description of future generation resource programs for the 1973 through 1979 period.

The attachment includes the latest projection.

,Resconse to Question 2:

We are furnishing copies of Edison's Settlement Agreements with Anza' Electric Cooperative, Inc. dated February 2, 1973, and June 8, 1978, respective 1v.

These Acreements were dealt with in Opinion 'Jo. 654 of the Federal Power Commission issue? March 19,~1973 and Order Approving Settlement and Allowing Withdrawal in . Dock et Mc. E-7777 - (Phase II) and Docket '!c. E-7796 cf the Federal Energy Regulatory Commission issued Fe5ruarv 23, 1079.

copies of these Orders are attached.

Mesconse te Ouestien 3:

Attached are copies of FIRC's June 7 and June 25, 1979 letters notifying Edison of the acceptance for filing of the Integrated Operations Agreements with Riverside and Anaheim.

- Anaheim and Riverside have not yet taken any services under the ICA's. However, as d,escribed in p. 12 of Mr. P. L.

Mitchell's E-7777 testimony, Edison did integrate non-firm energy which Riverside and Anaheim purchased from Nevada Power Company, and did provide interruptible transmis.*ien service to the cities

'for this non-firm energy. These arrangements preceded the i

- APPENDZX 16 execution of the ICA's. All interruptible transmission service arrangements provided by Edison to these Cities are outside the scope of' the ICA's (see ICA Section 18.6) .

~

Resoonse to Question 4:

This. answer supplements our August 10, 1979 response to m your Request No. 6. No further significant actions have taken place with' respect to ICA's between Edison and other California cities. .Edisen is still waiting for comments respecting the ICA.on hehalf of the other California cities (Azusa, Eanning and Colton) . Edison.has not received a reply from Mr. Geerge Spiegel to Mr. John R. Bury's July 27, 1979 letter to fr.

Spiege1~. There have been some informal and generalized discussions-concerning the ICA's with representatives of the Cities. *hese discussions arose out of proposals by each of the Cities to acquire resources. Banning considered and abandened a proposed power purchase from Western Area Power Administration. Colton is a proposed participant in the California Coal Project. Azusa-is considering the purchase of pcwer from a methane gas generation project initiated by Azusa Land Reclamation Conpany. All of the Cities indicate? that Mr.

Spiegel would be their spokesperson concerning ICA matters.

Resconse to cuestion 5: ,

The. anticipated transmission arrangements ara clearly summarized and set forth in the attached negotiations summary prepared by San Diego Gas & Electric Company following the l j

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APPEN0ZX 16 negotiating meeting immediately prece?ing terminatien of the :

Sundesert-Project. 1

-Reseense to cuestion 6:

1

- The substance of Section 12.2 of the 10A's, involving the i 1

method-for-calculating a City's contribution to installed I reserves. for Edison's electrical control area, was agreed ueer i in the 1972 Settlement Agreement with Anaheim, Riverside and I Bann i ng . - The method sqreed to is the use of a five-year rolling average percentage of the reserve margins of the combined systems and applying this percentage to the rated capahility of a City's capacit',' resources . Unless a City becemes grossly over-resourced, we see the effect of this approach to be the same when capacity resources are less than or are exceeding a e Citv's annual peak load. Therefore, we do net articipate any anendment to Section 12.2.

Me are not sure what the N?.C means by "discoureging" the development of generatien by a City. Edison and the Cities hava agreed to Section 12.2, and Cities are, in fact, proceeding to obtain generation with a view teward becc=ing self-sufficient. .

i At such time as Cities feel disadvantaged "y the ICA they have the option of seeking modification in accordance with Section 206 of the Federal Power ).ct, in the event they are unable to' reach agreement with Edisen. The cities will ba " encouraged" or " discouraged" by many events, such as, for example, the prices of fuel.

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APPENDfX 16

- Rescon=a te Ouestion 7:

First of all', we are at a loss to understand the reason for this incuiry. Cities have not complained to Edison; indee' these arrangements (and their originatien) - are the results of negotiations with these Cities. Are we to assume that contracts, reached through arms length negotiations with the Cities, and accepted for filing by the TE?C, following intervention by the

- Cities in support of the filings, are nevertheless to be

' dissected by the staff of the NRC in pursuit of some other interest? Moreover, ycur cuestion No. 7 appears to in?icate a misinterpretation of Sections 5.5 ard 15.1.1 of the ICA's.

The ICA's are silent with respect to a City's oblication to provide spinning reserves from an integrated City capacity Reseurce. Onc4 a City integrates a Cepacity Pescurce into the <

T.dison system and centributes its pecportienate share of installed reserves, Edison operates its system as if that resource were owned by Edison. (See IOA Section 10.2.'..) Neither the ICA's nor any other City-Edison agreement requires that e City provide spinning reserves as you state in Item Nc. 1 of Question 7. Item '7o. 2 of Question 7 is in arrer in that if Edison were to operate a City Capacity Fesource at 100% of its

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rated capability, the City would receive credit against the energy portion of its monthly billing for al? of the energy assceiated with the Rated Capability.

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APPEND 8X 16 Besconse to Cuestion 8:

please exclain the rationale for use of Centract Enerev Cost instead of a solit-the-savines basis.

All energy sold by Edison to a City under an Integrated Operations Agreement is on a firm basis. Edison has never utilized a split-the-savings approach to the pricing of firm energy. We believe this is consistent with all utility practices. It should be recognized that Edison must be prepared to furnish Contract Energy to a City (in addition to partial requirements energy above the Capacity Credit Line) at any and all times, including times when a City's own integrated capacity rescurces are not available to the combined City-Edison svstems.

In general, te the extent that the Cities acquire and integrate City capacity Resources to meet all er a portion cf their electrical requirements, the Cities are treated as generating agencies. In general, the Cities are considered regular resale customers to the extent that thev have not acquired and integrated City Capacity Resources, and purchane that pertion of their capacity and energy required (above the capacity credit Line) from Edison under the general filed =artial requirements resale rate. Edison's basic approach to the pricing of energy is that when a retail customer or a regular resale custemer pays a demand charge and thus supeerts Edisen's investment costs, such customer is entitled to pay for energy l 1

on an average cost basis. This approach is utilized in the j pricing of partial resale requirements energy above the capacitv i

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APPENDZX 16 Credit Line and cf retail energy subject to California PUC jurisdiction.

On the other hand, when the purchaser of enercy foes not

. pay a demand charge, energy is priced en the basis of the incremental cost of generatino such energy. Under the ICA's, for instance, a City does not pay a demand charge for capacity associated with energy purchased below the Capacity Credit Line.

Incremental costing has long been the basis for pricing energy sold by Edison to generating agencies such as Los Angeles Department of Water and Power and Pacific Gas and Electric Ccmpany. In the ICA's this incremental costing approach was used for energy sales below the Capacity Credit Line to partial recuirements Cities like Anaheim and Riverside.

Edisen has utilized a split-the-savings appecach to enercy sales only for sales of non-firm or economy energy, consistent with normal industry custem and practice.

Please describe the rationale and acerceriateness of this t"ce of nricine (City Incremental Cost er Edisen's Centract E e re'r Cost) for a cartial recuirement eurebaser.

The question suggests the possibility that a City would acquire and integrate a generating resource such as a peaking unit, but that the peakin~g unit wculd not be dispatched most of the time. For an integrated peaking unit, a City would pry for energy not scheduled frem the " capacity credit" for the unscheduled peaking unit at the incre ontal energy cost of the

' APPENDZX 16 i

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peeking unit or Edison's Contract Energy Cest, depending on the City's designation under ICA Section 16.2.1.1. l The rationale fer this type of pricing fi that a City is regarded and treated as a fully resourced generating agency (not as a ccnventiona1> resale customer) for its energy purchases below the Capacity Credit Line. Knowing it will be regarded as a generating agency, in evaluating a prospective resource, a City _

should compare and estimate 1the likely capacity factor for the resource, its incremental energy cost, the value of its capacity t r

credit and. Edison's estimated centract energy cest. All of these factors will he compared with the estimated levelized demand !

and energy charges under Edison's partial requirements rate.

If a City chooses to acquire and' integrate a low capital cost, high energy ecst, and low capacity factor peaking unit, a City must expect to pay Edison contract energy cost (presumably 1 ewer than the unit's incremental energy cost) fer energy associated with that unit's capacity credit, under the ICA Sectice 10.2 rriteria, when the unit is available but net scheduled by I?ison.

This appreach is certainly equitable and fair to all of Edisen's i

regular customers. If a City could acquire and integrate a peaking unit solely for the purpose of reducing its demand charges, and at the same time pay Edison's average energy ces.ts for energy associated with che capacity credit for the unscheduled unit, cost burdens wculd be unfairly shifted frem ,

such. City to Edison's other customers.

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APPEND 8X 16

~4e believe that the ICA section 16.2.1.1 apprcacn :c pr cing will result in City's acquisition'and integration of resources

= cst heneficial to the everall interests 'ef the City's cwn customers and Edison's other retail and regular resale custcmers.

^'

We repeat that the Cities agreed to this provision.

- As your question recogn!:es,-the suagestien that a " City would dispatch peaking units if under.a City's contrel...during

' extreme peak load perieds in order to reduce demand charges under the partial requirements rate schedule" is incensistent with the integration'and capacity credit process under the ICA. A City will receive the same-capacity credit'for any integrated capacity resource. No distinction .is made between a base load, intermediate load or peaking load resource.

Prem what becks er oeeratine erincieles did the two ericing retheds, i.e., Edisen's Centract Enerev Cest or alternative 1v Cirv's Incremental Cest cricinate?

The contract energy ecst pricing methed was negotiated as an alternative to utilizing Edison's incremental energy cost as shown each hour en Idison's system operatien computer. Edisen and the cities preferred this app cach because the price would enly be changed on a menthly basis, and because of its ease of administration. In fact, centract energy cest was expected to be icwer overall than :he recorded incremental cost of generatien with oil and gas as the fuel scurce.

. In accordance with ycur request that Edisen furnish the l l

separate ecmpenents (EC, ER, CC anel 100/10 0-L) cf Edison's I

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l APPENDEX 16 1

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i Contract Energy Oc:t f:: the latest month a.cil:bla, we are I attaching cur calculation of this cost as of Neverber and December, 1973.

Resconse to Question 9:

A distinction must be made between firm transmissien service offered over new transmission facilities constructed to deliver power from new sources of generation, and transmission service offered over existing transmissien facilities constructed for a different purpose.

ew Transmission pacilities. As part of the development and long-range planning of a preposed new jointly-owned generation project participated in by Edison (e. g. , San Joacuin or Kaiparowits), which project recuires the construction cf new transmissien facilities, the project participants would jointly plan the construction of the optimum new transmission facilities without regard to which participants would own such new facilities. The goal of such planning would be to deliver the ou:pu: cf the new project to the participants, to interconnect the new facilities with the affected existing transmissien facilities, and to minimize adverse envirenrental impacts from the new construct' ion. It may be assur.et the project participants would agree upon which participants would cwn and which participants would receive transmissien service from the new f acilities. Edison wculd cooriinate ics planning with the needs of other participants in the

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APPENDIX 16 1

1 I

l r prcject when and if it planned .=-d develeped new )

l transmission facilities relating to its participation share in the. project. Satisfactcry transmission arrangements

- for all participants would be as essential to the consummation of the generation project as would be acquisition and installation of a turbine-generator for the-project. In this situation, the new transmission facilities are built from the outset to deliver the project's output to the systems of the project partici-pants. If the use of Edison's pre-existing transmission facilities would also be required te deliver the output to other project participants, the necessary long-term arrangements would have to be worked out as a part of the establishment of the overall feasibility of the project.

The important point is that sufficient lead times would exist to work out plans for the necessary increment of transmission capacity to handle the output of the project.

Edison would of course comply with the transmission service provisions of its San onofre Units 2 and 3 licenses, its Settlement Agreements and Integrated Operations Agreements.

Existine Transmissien Pacilitias outside EAisen's Service Area. Edison's undertakings in the San Onofre licenses, Settlement Agreements and ICA's are to use its "best efforts" to provide firm transmission services over then existing transmissien facilities outside its service area.

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APPENDfX 16 T'--- '--t-).i gF de -at ebligste Edison to construct ne- :ransmission facilities if such are required to furnish hs nc:Assary transmission' service. (While not obligated

- to de so, Edison has offered to. construct such new f acilities in projects such as San Joaquin.) Because each new proposa1'for Edison te provide-firm transmission service involves different facilities, conditions and parameters, the determination of the circumstances when "best efforts" will obligate Edison to furnish firm transmission service over existing facilities will of necessity be made on a case-by-case basis. As in the case of " rule of reason" deter =inations, universal and all-encompassing " conditions" cannot be quantified. Experience to date indicates certain circumstances when Edison has offered such services. Edison has provided firm transmission service using transmission capability in its existing facilities that was determined to be surplus to its needs to transmit firm or non-firs energy to serve its customers or to meet prior firm transmission service commi tments . An example is Edisons offer to provide firm transmission service over the proposed No. 1 Pale verde-Devers 500 kV transmission line to various delivery points'

~

or interconnection points en Edison's syste=, beginning January 1, 1982 and terminating May 1, 1986. This is 1

described in the E-7777 testimeny of Mr. R. L. Mitchell (

at pages 18-19. Another example was Edison's offer to 1

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APPEND 8X 16 pr: vide icng-terr fir: transmissien service to Pacific Gas and Electric Company for the output of its share of the proposed Harry Allen-Warner Valley Project, and to

, California Department of Water Resources for the output of its share of the Reid-Gardner Project in Nevada.

Subject to. negotiation of a mutually satisfactory

-agreement, Edison'was also willing to provide such leng-term service to Anaheim and Riverside if they participated

- 'in the San Joaquin Project er in a Cholla unit of Arizona Public Service Company. >

Xhen Edison constructs new transmission facilities to serve tS e needs of its custcmers, such facilities become dedicated under its public utility obligations to serve Edison's retail and regular resale customers on a first priority basis. Under present fuel and energy supply conditions f acing Edison, in' addition to its firm transmission usages, Edison would reserve seme capacity for delivery of economy and other non-firm energy

.pudehesed by it from other systems. To the extent that such >

capacity is reserved but not needed by Edison, it would be available to provide interruptible transmissien service to ether !

cystems.

Edisen recognized at the time of its initial response te' Anaheim and Riverside that the No. 1 Pale Verde-Devers 500 kV -

trans=ission line would be inadequate to transmit the output of its proposed participation share in Palo verde Units 4 and 5, in addition to its firm 580 MW participation share of Palo

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APPENDfX 16 Verde Units 1-3, and therefore that more than one 500 '<v 1ine ,

would be required to es:ry out the functions which Idison ite=1:ed.: All of the prrprzed Califernia partirips-ts in Palo Verde Units 4 and 5 recognized that new transmission arrangenents and facilities would be required if they participated in this 7

Project. In fact, the California parties were embarking on such a study. As in the case of projects such as Kaiparowits-and San Joaquin, for which Edison contemplated constructing seme new facilities and providing transmission' services over them to other participants, the optimum approach may have been for Edison or one of the other California participants alone to construct and own a No. 2 Palo Verie-Devers transmission line. t

. The owning participant would have been expected to assist in the icng-term transmission service needs of other California participants for their output from the Pale Verde ttnits 4-5 project, utilizing capacity in the No. I and No. 2 Palo Ver?e-Devers lines, if the transmission studies indicated that the construction of such seccnd line was the optimum facility to be built for the Units 4 and 5 project.

We do not understand your next question, because Edison did not acquire any interest of Salt River Project in Palo Verde Units 1-3. This interest'in the Palo Verde Units 1-3 will be.

acquired by Los Angeles Department of Mater and Power from Salt River Project.

Finally, it is Edison's view that Anaheim and R1verside ,

could net have and should not have built their own transmission 8l i

- , - , , , ,..,,m, c.-,--- . . , , . . , . . - ..i..,._._ . , _ . . . . . - , . . - - , - . . . . _ . - _ - . . . . ~ . , _ . - . . . , . .

APPEND 8X 16 facilities : lel*; te tranreit their 2.5% share of the 2444 FW Palo Verde Units 4 and 5 project (unless the facilities were also to be utilized by other parties). Consi: int . tith its earlier discussion of the construction of new trans=issien f acilities, Edison is confident thar mutually satisf actory transmission arrangements, with the least possible adverse environmental impact, would have been agreed epen by all of the Califernia participants (including Anaheim and Riverside) in this project.

Reseense to Cuestion 10:

The latest action by the Bureau cf Land Management is reflected in the attached notification letter from BLM dated January 2, 1980.

DAVID 2AF.RY Assistent General Counsel February 4, 1980 O

8l i

i r , --

.-,,e -4 -s- -r e c -v,r, e . - - - v- - - , ,

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

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

t J

APPENDIX 17

...oe . . . .

.y.,....,. . .. . . .

..s..~..~...~. ., :

.% , s 4 . r.a; A . %T .

. n. a . ...** .l. . ; - .,

. 37 g

. - .... .. ,, . ' ' . = , 10y7

,,,,,y

.......e..

. ; ,.,m. . . I ..v_ -

es a; esA s.a. .a '

..e v.ies.e u n .. .J.1.4.. *

.1$te.a ..... s...y ~ .'. e .3 a c .' .". . . .=. .- .. =.

. .' ", ~, . = ..d .' .. ,

. . n". '.eu . '. ar c s s ib ' e .e ". ..'s

,.' 'n. v.am_- m=. c _ _3 , .3 .. .=. . 4. .aco .. e.

. ,g e. e.a.g .3. =e-.ambe.-

r .

a..gg...u..s.a. gy

.a..gg

(.g.g

,g g.s,c e.sa. - . -g.:.. . . , c .. .. '

~~

s a-. . a ' ves c'. ~ .3..' .' *._* es v d 5e a w.. .. . .

3.e),- - , .:. '. s '

.c.,

e . e AC . . . .

"le p--esed . ., . ., .

-- ., a .d .i .a. g s _ u d v.

_. , " . e. a d ' - e c . .'... .e.-e s*. . .d. .

task. feree ,tc dete==ine is a=pecximate ta==s certain be=efits and ces:s that **

would rescit frem various

."c..e '

levels

.e .'a '^ ..c cf 1::artie j

.. ' s ~. .=.s k .' c . .e _' .1

.e. c..~.a ** .'. , .

Intertie Cyrating Task ?c a... e and delegated to this new 5::cp .

$.e c s . c' .

i

~ 5 a . , a - . c ' ' '.he.' .-* a s s .' .

.".a . ..".ev -,". '. . -

v=_.' ~ s 'e.eis

.=~.d

. . d e a1.4 . .' .. f , .. aw d.' .'. .. , s5e e he.ds . .

d'.

e.c-*.s c 1 deve '.c r ' .n- *Se - ..as:e....te.

~.

.~...e

.. . . .. ... .e ..k.el- . . . .

benefits attributable to reserve sharing.

. a *.k . *. c . a w.= s '..O .' .. . .'. . .d e

,m .. ... .g . 4 g ,. ..g._4 , e.,

. . g e.

.a.s_e in their . analysis both the AC and DC intertie segnents and t the ca acity increases were to be based en'..#. .

the e sv. " . - stase . con- '

e a. .1 v ' .'. 5 3 0

, 4 4, .* a d . a.. .# . 4 ,a .a.* .' n ~..'.a . .

It is intended tha: he essec-the cri,inatine. .lts* ed tteethese in ree.ard. two cec to =ittees the '

be analv.:ed. hv. The end result Overall ces:/ benefits of the d vari =us c _' " , ,- ad .d . , pia . .

.s.. e ". ..' v- .a s k.a . , ".-, . .

w . ..' d. '.,e a -e . . e.a.d..= -.

a.. ear scen==ically justifiable the .:alimi.iarv. analv. ses t a A. ..a..J

.. f. Ca.t .

a.. . e .- 4.ewf.. . . . . . ., ,,. <= .. ,si.

?.... . C, r.J.e85 -

e 3. . ,. 4. . .e.J C m..e. .

z. e...* g.. ^ ~a . ' ~ '.,. a~~.. .s . 4. .. ,

' . S

.g . . g g . a..

gg 2 . e. .w e e. .g ". .i .* .*.a. . vgg -.A

s-

. f.. - - . . . c .e n . . -

t=g. g s.A o. n.a .g , o. .s. ,.2.2.. .

~ *.g r

..;.. 9gg . g f..g g . . . . . -

3g 34 ? T. g e.. .J. .* .; .g- .y -[.

. 3 s .. ey , sa ** J. e g ~. .

7 .* .. ,.. . .J. ,. [,.. . .. 2 r s ...

. .r.

- w^. f ~= .v. I-e a. u .w.e .. "..=..'. .' # . ....#. .=

..? .e*n.~, m. .a e

= 5 .'s . .# . f- ; . .= ' .' , e. ,3 s.~.. a . ' ~- *. f,.. . -ss ib ' e

. . . ; .. -e-e.a., ' .

..___,._:.,,. . . 2.. 5, t.

-r..

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.; 7....--.

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,4 ...

.r

.s g.4...,,

. ...wg

.y...

. w. .

...s.. g .g a. .gg . .. y g.e.._ ,..... ...

-f

.. f . g .= =_. g ,

. . g . {. J. ... kg a . ..g . .

y J .* . 4 . .;.

. . ... .-s

. . . . 4. 3

. f 4... ..a..

.. .g

..gg e.

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7 -- -; .a.. .;.

. g a.c J

i..s. . . ,

.%.s.

~. . s. .

.a . s. .' .,p

.J . .

4 . * -

% e. v .s. .' s .,. y..~~ys

.-~ .. .

eaa

-=.

.,.s%.e..*..'."

.y .; .. .

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. ~ .s. . e ,. . .

., :a ...w. c.30 ..... ... 4.e .

3 4 .. . g. .. .

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.' .es.

b.

t

*m 14-="" %v=+t 7 +W't4'T'5-MS$

gM 4-'m yP't*r*g%eM-T--?

- - - -. s . _ . , .

APPEN0fX 17

,* ...,J..,p . ..

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b. .,.. .c . . . . .. ..

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4. . J a .

. . '... b.

. . .g. .....r....

a .w.~.,

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4 p. * . . J. . J . .b. s. 4. b. . wa. ...

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a

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1, . :. . *

=

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u. 2a .a s ....a.y y.....

n ..s..

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. . . . . . 2. .

. . . . . n. 2., ..

a E e 9 .e, 0

. u.e -.

.,,m. .r a..y ., e - .e.

n~

2

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a ,

i u .a. s.Re ,s 4.S b..s . a

. S .

3

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...w .- s ..L. .w. . ',

a. s S.i .t .s C .e.. .. .. . ... -

... 44 a.. i ..4 s. av .%.* "as ...-N*

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f . .. .w. ".

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s.e

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m. .w. S a. C s *..* " .' .'..#d J 4 3.a 0 0 .yh. a.. . v_.t. 4 . w.4. . u %.

a.L _C s. . . . C*s . '#

4 .C a .

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.~

g. A..t. . g g; s,g . g.. %

. . J. . B#

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. . .Ja.1

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, jt

m. .s.t NC. .us w.es*. 9*t_ .. g

. c.. .i n. g g m..2 .s e.y .

u (.%.2 g.s w C s e.u. g. . ...

9. .

. .r.. ... ,3 $ Q Q .m..s. .s ngy g2 2. .n g .. A. .v..L,

. . s..e .t. ..

ugsy8S - . .wn u. s . ..

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"" s.3 s ".. . .* '- .w t s *

% r1.4 J...g g.a .J. .. .... . 4 .; " C .# -.S a.#..# .# ' #. ."..'. .' =-d 9~w*.#

)

2. . .

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u e -n.a_ r..s..a. :. <

' 1.

Reset the relavs in '.he GI CapacitCCs.at , .4 .

u w RCC=dsc e r

. s.e .3 4 . s . C .v . .

...e"

.ic.t. ... . . u.. C ..

.e '.v e.-. ees e .d. .* . s wd ..' '. -. C . .-. . e r ',. ~.C .

Thev. were-se. fCr C re . is belCw 19C0 amperes. i 3000 a=peras. (This will dalav. :sinsertica

. C .' .' w .' . . ,, = '. .*. . . d . '".a rar.=

Of .' .'. e .'

.y .C

.J.. . . ..44.411-

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1 4 .,.e .-

.. .k. As a . ..&C.4 .C . .

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. 5 E ... t.n. .. . . '

..t gg... .%g

. r g g.. 2 4. .w. . .S..

n. . . g . 4. . w ... a. e *.*

. *rE " .* . .~ ~ S 44

. ~ .. ...*~j 1.y4..

. , p. ..

w.

t s .w... . *..a..4 .._

.. s .... .. . .t. .J. W

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. . . .: C .c.

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we a C. _w .e ...a..

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a. . I*s t s-r . .:... e s .., u s..;r as s w.. .r..

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y Cs".~'.s*..

4.

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b.. . .

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, J

. . .J. .. . . . .

.m .....'.

.' . . *****=.*.**.a**.*

J.=..e..***.

. . . .. *..b.. . ** b. .d....

m . ..J.

F. . s. ....., .* . .

a

.e.*.* .'. *..e.

b a =.*a* m. . .=.

a =..= *. #=..= *.*. .J.a.

r b.. .n .e.

i. s. .*. *.n..'...d a. e." .- e. . r* .

- . 4

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f -*

t/ . .

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l n"w ,=--=---m-ee- e+w-w , y w--,. v---g w --e-- w ~

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

9 I

APPENDIX 17 t I

-3

'% a . ..

4

....;.. .a. .s .a . . . .

. s.a -=.n . J .e. 4 . .... . 3

...i. ..6....

.. . s.. ..

. .. . . s. o. u.. 4. a .. , o u. a g.u .. . .. . ...e....,,

y....

s .. .s.a,.

n. 3 Y 0 .1,-; , . .u. . a. * -

4n u a, s . . , .u. . .; m, .a. .. ..s..;

s. ., > k..

4 s. a. ... ..a. ,

. .4..t m-3 u.1 p,;

.. 8 .

"8*.

...-.-*...a.s '

m .#. 3 a .. .. J. .i. . ~ . ". . .- *. s V. s . a

s. . .

s):: Ca r a ..... ... ..,s.. ,A.e ,

..t s . gu. *, . eye., c.a a.

. ae .i .n .t u.y .

e..,g.a.e..

2 -. s.2.e.a4' . .s s.s 4

m..y e '~ "..u.e . = ~ ' .c. . - .

c . ..%.*.condue:c:-in . _

i.e., the the s ~. overload AC capehility lines, c' o '. ~' ~ ~~. e a s ' .~. ~, .h e ~. .=.p e ~ .' '.c - - a -.~,

~ .

o e.. e' a-_ ' h '.a v'. w. ' 5.-=.s e s .'. .- .

d ..e

.g. g .-wa,e...a..s a' woui d b'ee ~ ~ .--.c.. . ".'..' . s '. .s .'. . a 2 7 0 0 .

e me-, a:.~v. -a 3.1g o'. .

The e e se ;es mi ra ing en the, AC lines north a o cf Table Mcuntain. .,.,.a....,

at.. .u c a,r.:.. s ., . - s a ,

.. .9eo ic.,..,a.-s . . .

to Tesla is estimated to be 567 Ss ca.acitors m.h.J.s 4..S .i .e.Ce .

f: = Jchs Dav.

ass., es a < 0 pe

.. e u.,e .t,,.

c. .e r .. s 4...,.. . . 1 e . e .1. .

s. c . n,..u.e s

s: ,e..e.. . .

,osses a _ e ass.-ed, - .. ... - .. .

e.e..s.,.be 535 2/Mi using delivered pcwer at Tesla is calenlated to

( s ee .a.m ,.e ,. ) .. I. 4 s .4

.., .. . . .r...-...-no . e

. . e..,

.te.2500 .., .w. . a . .

_.3" e s .'e~<e'

,ec

, a. *~.e'y '=.-,e

.. ...s. , e.. k.i.'.w=.. .

i

...s. .s.g .. .g .

- .. .s, ; s .e ., .t.. . .. s. . .. .a ..

. .. s .t . ,. ..u.e .,300 s

.u.d .u,ase coes w. 4 b e * . * ,== g . g .' 4..=. =y=

. h. g a=..s =,= g

-. g .1 4 gb .*. .T ' 6.V. .a= g g.i .'..=. e .g ,,

y. m.y gg,s. ~ . .~.

~.~_-* e: c' a " ' '...~.a.

4 . ' _

,s

' '. o .-s... . **e W.. .- n'...~.c . .

mese regn.,. :e- e-~at. etn.s .aA. a.. .wo c..n7..

s. .

'.,300 . eve.a. .

sc . css noi., The capaci:c:

t .'

. ., m= .: ,,;.

(A) of his sec.icn. c'. '".e ~.=.~e**a. a. -

' c.1s. ,

were entlined n.s .a.g . . in Part,3oa .. g ,., _4 .t1a'.es v..s. .

l I

ry..

.t .:.N rs e

==

A

~2 22.:. . , .....2 . a e. .s. . .

C)-

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J 7 a s .4 3' 4

b.e a* C

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" . . ' .=

m..= .J . . .3. 3.s a ~ = a ** a' C 1.' .~.= .

ab c~. e ~ '~. e.* e "s 0 ' ..i ' =.~. e .' w ~, ~ ' .' . e". e. .. s.* '., -

. ' 1 4 1 J ~ e . - .* 9..J .' . . e s .e e .. . b.e * ..=.ea .a .

.m J 4 4. ..4.. . . J.

aw. s.

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g 3 .3... . .. 4..s.. ,4 ...~ . .. . . 4 s..i . . . - *

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w. .J. . a.? . .. ... ..m. 4 %.

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.J.

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4

m. .b.. s. g g

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s. ..

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3 J

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1. .'..=. a. .#.-..

J

a*

.s . s .. .. .s. ..J.~. s.

.4 4 . g J. g 43 .... . . . y;.. .* s .2..a =.b.. a ., .

,..4. .. . ..h. .a . . .* ..

. z .=. .J **.* b .o =. 4. ,- s.

.- m . / .. .a.

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, = . . . g. .*e .

.= J .-. **9., .' #.". ?

J. . .. a. .s .e J =. ..

,... .s %..3. . ,. %.,,. . ...s. 4 e . .

ar .

y .*g3a .. . . .**

' a ". a. *. .. .

i

.s... .,, ...9Wv t. . .

....W

.f..e .. J.

.i .....g .s. a. J.. . . .. h. .. ...g.a.J .. . . . ..*.s ..,a .. .

k. ";

...b.g =.

. s.7. , J.. .; .. b. ;o.

s. .s. .e. .=;.=. -~..~.e .aa..-=.m...- ..S.*=.y=. .

I i . .aa. .

g W . .-, , w w .- --r-, , _....-.r%v. .,nv,.-w .---s-..-. . . , , . - . . , , . , - - . , w#-y-r,, -,,.,-%.,,-e ..<,-,.-,,-r--,y- ,-.m.-v---m-- -..-~-,,v~,-- - < - , - - ,e%44--

t APPEND 3X 17 I

.* . .. ..- ,. . . ...= .n. .e, a 4 e-_ a a r-s.. * ~ . ... .

, 7g .. . , 6. 4 - y. ...3 t. . . - . J. g 4 .

g..ga. . . . . .

a .

,.e.

~ s. . s. .

7.. r..

~ .;

4.s 4... .,se ,. . . .

.=.t .1, *r. o , .w..e s 4 24

. .; . e4.. ..y4.. . .; .

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"..". e v. .'. .= ;-

r. * .:. '. O .' ... , a .'n..'. c.e .ey. .J..... (a : i ,.::e ,.

.~., .. .*..',s

.- ... .. .t .:.

, ... ..* a.-e y.. sy 4,.e~.e 44.-

. st ..s

.4. .a e e,,..

a

.e. . ...

J a, e 3 .*.

_ .. s) .. . as..*sJn. .

m..i. g .c, g ...A ..J ., .._. g E_

4

. . ...g.a3

. . e,

.J g.* .4 ... g . g J g4 .g.1 ;_ g.

y r.j g che vel: age assu=es

~

hat the eniscing condue:c: would no:

3efere this plan receives ft :her have to be rep'. aced.consideratien, an investigation .

s should

" s-~"'a'.s. . ..be . made to de

~%.e =ax.'. ~ ~. '.'.ac e ,c s sib ' e .*.. _t _

, .- -".,_g g a e.n_z ..g ,w 3:s'.~ c u'. .

g. , .c o u.g g.o.ag.a .,

._; a a <. .n.s _ t .. .

DC C rent '"nereases

'~~ _-=. .= s-e xis ..* .. , c n d'.~ m. . ,

. m u' ' a'. , e.~ .

n..u. e' cra a c .. _a . * . .e, w_' a_.cu s .' ...d .^..a.. s a,

' k.e e x. .' s ' .. , c c_-~. e.. . .-=. .

F.eplacement of all existing related tower =cdi'ications.MP c: valves and c - rec. n ..' lace -a -.'-

=ent

., woul#. of 5..e valves with thv.risto:....ve-te. '. . ...s "c ~ e- s w.i th a *.. .* . .k

. . . - 1 required.

The Three levels of . current increases

'~ ~' ' " " s e va1"a'..hr. uc. ~:, n'.eThe 1976 ca-ital were examined. . ..%.

. ... .. a ~. e as es c C. . _ . .

C line 360these 5 65 and 760* :G :sscactivalv.5103,.5145'and i 5157 m llien ccsus fc: upgrades are '

respectively.

Cc: esycnding incremental ecsts of pcwer -

delivered a:The Syl..ta are 5366, $310 and S274 per kW (see 565 Ma ine:aase cc::espends to the sa=a 467 Table

r4 of 1) .

delivered pcwer as in the..sm casa_#c_ c' the w.a.voltage c; gradee...v. '

.'.. .-=.:n.. .=

- c.=se was b. note

. "..= '.S.e.

3137/kW.

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1 I

APPENDfX 17 t %.2 .. _se.

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se , eve.,s c_ ur .a.aThe total th se DC line sv. sta= vas uass ee =ed.

CC conversien. c.- 7.e. 0 0 .u .s. c _. e s y c, ._ s t . .,. . . , ._u.e .

l i

.c e a.ed ,>000, 5000 levels of us.5rades. The 1976 cas. ital ecs-s for these S.!! 5 evaricts and levels of ur.e. ades are e.iven in Table .4 ._.._.e I as,5400,m.h

. .a c s* s e s. u_se So.c.

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. .w e e ,. es,s,. s ,an e ,...s ...__. , .e,a.

,o . . w_ . es e s _. e ._

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as $291, 5217 and 5153 ee kW,

,..e_

res: actively for the'2500 m b a s e r a t L a c. .

'5..=. ' '

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- ' . was s'.='.s4 , . e". .# , ts _' v, . .

inclemented between John Day and Tesla. hnether DC lines The 4 wi h these terminals intemediate sta icas between would be John feasible Oay and is tacertain.

Tesla en the . . . . .

...* a. . .. a. wtc,e<s.ce

, esen . 4C .p w. em ha.te s .4 v f .

(, ._ In sc=e ferred to c: f cm the 500 kV n=ertie sv. stem.

areas, subs astial changes so the existing 230 kV network '

would have . to be =ade if the 5 00' kV AC lines were converted' to OC.* e. /mA1:ernativelv. e C o no. a s *..=. s 6..s ..J.d i...s a .

J

r it wculf he.b.e..e.a.

necessarv. 1 . c .9 ** 4 8'.*.....S. to establish Y a.

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1 l

APPENDIX 17 l T"" .

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APPENDIX 18

. BONNEVILLE po .IR ccN31. ..m '

' ~ ? R'-3

O Bev ? A21. PuRT! \ND CRECOS 8'00*

6 ?l;".. Y. 4l:-

..w/ _.-, --: \

?

l To Thess Indicated on the A : ached List:

Gen:le=en:

10, 1976, nes:ing .

Attached are a copy of ny notes on the Augustheld in San ?/

O a-c Pacific Northwest-?selfic Southwest intertie; an attendance l N list; and copies of data discussed at the nesting. 1 it should be- )

As indicated in the notes, the group concluded ha: All come the Coordinating Committee--Third 500-kV A-C

~

l commi: ee and/or attend all coa =ittee nestings.

.'o on September 16 in room 464

""* The next nee:ing was set for 9 a.m.,

~

of the 3?A office in Forciand.

Sine -ely yours,

,, \

fyf y'% l

, Vdector J. Durocher ;

Assistant Ad=inistrator I for Po'ver Management i

1 6 Inclosures: )

Meeting Notes j

A::endance List Assu=ptions for Econ. Eval. of Srd A-C Line .

o California (?:eliminary) 3/5/76 Char:s 1-4 Principles for I:cchange of ? creed-Ou: age 3/9/76 Reserve Capaci:y (?r 14-427)

Proposed ?:inciples for Reserve Sharing l 1

l 3erveen the ?TJ and Califor: iia 1

1 4CWTICS h t'h %

[.P. e -3 $

3 V- E 4 '

4 l

%'Ds sC* *l l

l l

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

t i

' APPENDIX 18

= I s 07 Ai;;; 5 10, U 76, C :! C; . . . . . .

.. .. . v - a . - . . . . . . .. .

rcwar.DIh.- u- .: :.na 4m eA...

. .. .e. _..,-m..~A.,...-..

-- .,J .s C

hs , =.1::46 ::: r.ne.d i: 17 '? .n. :: the of fice of he.ifi: 'as &

Ile ::1: C:=pany in San 7:sseisco. An a::endance lis: is :::n:hed.

Mr. Dur:cher.s==narized eng:ing s:udies in the ?scift: .::::h.es: '

o analy:e the capabili:7 of :he nydro system :o pr:duca -"- "

peaking operations during :he su==e nonths. Mos: cf :he avcilabla data relates to instantaneous or hourly peaking capabili:7 The

. i smmnar-win:er diversity-capacin exchanges both with Arizona and &

Nevada utilities and with California utilities assumeMore supply of study careful.

peaking capacity 8 hours9.259259e-5 days <br />0.00222 hours <br />1.322751e-5 weeks <br />3.044e-6 months <br /> per day, 5 days per week.

and.avaluation is needed of the ability to sustain such operations, the effect on daily and weekly pond and tailva:ar flue:ua: ions and of

=. ,

seasonal drawdown of reserve 1:s.

3 Because of concerns for seasonal reservoir dravdown and because O seasonal load shapes in the Pacific Northwest and Pacific w diversity-Southwest seem to peak for 3 to 5. months, 1: appears that '

capacig exchanges should.be limited to 3 months (.7ans through August and December through Tabruary) with exchanges in adjacent months limi:ed to about 50 percen: of :he mavdnmn (see Chart 4 of Attachment 2). i O The Pacific Northwest also would want a right to obtain return vi:hin 1 week of the energy supplied if water conditions are such that storage t

- rese:voirs are being drafted' excessively in any season. In such

- years, the Pacific Northwest would need to purchase vinter energy in order to obtain return of the diversity capacity.

=

The.Iconomic Ivalua:Lon Task Terce prepared a benefit-cost analysis of the third A-C line assuming that line capaci n not required for It reserves pooling would be used to effect diversity-capac1g exchanges.

indicates a benefit-cos: ra:io of more than two to one. The diversi:7-capacity exchange appears :o be the most probable use of both existing and future incertie lines for f t m transactions, since 1: seems i= prob-able that 3PA vill be able to renew 1:s capacity-energy exchange con:: acts when they expire.

Mr. Shackelford said'tha: load nanagemen: may have significant fu:ure i= pac:s on the relationship of su==ar-winter leads in Calif:rnia.

This will need further evalua: ion in considering the benefi:s of future seasonal diversin-e.apac1:7 exchanges.

Mr. Blood reviewed the p cli.inary benefi:-cos: analysis, A::ach=en: 1, and,the underlying assu=p:icss. Mr. ?ar:7 ques:1oned the line capaci:7 l used, indicating 1: should be about 2,000 megava::s. He also said :he California reserves savings through pooling reserves should be at least 7C0 megava::s. "here were other ce=en:s on capacit7 available 1

1 8

l

. I e-.. , < , , . v.~m- , c , - , - , . .~.,-w..-..,., e .. -..n.-, - + - - - + . , , . . . - . . . - - , - - ~ . - - + - . , - - . ~ - ~ - - - - - - - - , , , . . . - - - . - - , . - - - - . - - -l

APPENDIX 18

... .: .i.:.: .;r:e'. '- - - ~ - -- :

f:: sur;.us .: . : - ::::;,cc:_;:.2.

--e=' --5a a:ud e assu=r:1:ss, wh h need verif t:c:ics, ::.e. :hrf ..-:

in:er:ie appears :: be feas_cas.

-* - * -- -- " >- M the tra:hs , A::2:hnen: 2, Char s ".-4 He

.___;;:.1:. _.___.

.n

td ::: :h: surplus espa:i:7 sr.:. ...

C- --

for :he ?acift:. 5::-h-bef : s : u__.;.:.i::. f:: : .s::-::: - hil e :'.-- -

ves: vss si:s: :ese:- es.

Messrs. Gjelde and ?u3cis reviewed d:sf: principles f:: rese:tes

- s ":::

sharing, A::achsen:s 3 and 4, respec::. ;.2, .

Icte- --

aceived tha:'will be censidered in subsequen: redraf:s.

Mr. Perry suggested that the ecm=1::ee and task forces working en ou:

He pointed :he

- :hird A-C inter:1e studies should be sore f crualized.

that a steering committee had been formed to guide the werk rela:ed :o the existing inter:1es and this committee may be appropriate for a similar assignment on the third A-C line. Af:er az: ended discussicus

~

- including some discussion of combining vi:h coc=110:ess werking en :he second D-C line, it was concluded tha: this committeeItshould beccee

~

will assign, the Coordinating Com=1::ee, Third 500-kV A-C Line. All heerested

> coordinate, and review work of involved :ssk forces.

O parties are invited to name representa:1ves Minutes will betovidely the ec~1::ee and/or dist-ibuted.

attend all coc:mittee mee:ings.

Mr. Durocher was elected chaiman.

The following task forces are analyzing varicus aspe::s of the :hird C A-C line:

Resource Analvsis and Economic Evalus:fon Task Force

?orres: Blood, 3?A, Chai=an

> E. F. Ti=me, ICP Cur: DuBois, SCE

~~

Jack Craig, LADWP Ja.ry Garman, Seattle City Light W. C. Lester, PG&E Tune: dens: Evaluate resources, Icada, lead diversities, naistenance require =en:s, probable ::ansactions over and econce.ic benefi:s of the

hird A-C line. The resou::es available in each region fc; intertie

ansactices and uses that will be nade of existing lines ::ansac:icus

? oposed as present con:rac:s termina:e . rill be considered first.

should be deter =ined for the years 1934-85, 1989-90, and 1995-96.

Reserves Fooline Task Force S. E. Moody, SCI, Chairman G. J. 3ellenger, ?G&E G. L. Nesbic:, SDG&E

3. A. Reddie, LADWP A. 3. Hanson. ?cwer ? col Mark Crissca, Tace =a Ci:7 Ligh:

Bob Wilson, ??$L Diana Jones, 3?A s

APPENDIX 18 d s:udv Fune:1cns: ..v .. . . .. .. . . . .' . .:: . - : ' - -- ' * - ~ S s tu M e s an f

= cps 1:7 s -i--- - etable through ecoling reserves in the Paci ic

'-::y.:,g: sei c,n a s.~a , < ,95; ;c 12: _:.;5 55.

t:.~.nt::. ?- -

'=. ?~~ce

- C . C. Yeun g , ? S &I Chair- * -

M. 3. %~ny:e, 3CI

3. Ecpkins , 5'.,Gl.I

7. G. Schaufelberger, ITA D. I. Mar:in, ??SL A. A. Arnstrong, PG&E D. Gray, Seattle City Light Tunctions: Analyze system additions required, their opera:1cas is the

'4 SCC systems, and costs of fac111:1es to be added.

ne sert meeting was set for 9:00 a.m. on September 16, 1976, in Room 464 O

of the 3?A office in Portland, ne chair =an of each task force vill m

~~ reporr to the committee en the current status of task force assignments.

ese e de e

M M.

e age euP aus I

9 1

1 3 .

t

. . ~ . ,

wem< ,.y,,

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

h APPEND 3X,18 f

M . Jzzes M. Eendersen

..r. 3. ".. Sha:helf::d Vice ?:eside . --I;e:. :: c:.: n;; _y ,

- i:: ? eride-: 5 Gener:1 Counsel 2 l

?::if1: Gas L'Ile:::10. C::p t .y . . . . . . . . . ..

77 3eale S::ee:

?.0. I= *I31 .

Sa , rie;:, -lif::n:.:.

San ? ancisco, Calife =ia -9.'.106 Mr. ~::es C. 5:1:en':e Mr. W.-C. ~;svis Sep .. --I* e:.::i: C; :.:: :t -- -

Pacific Cas.& Elec: ic C =pany San Diego Gas & Ile:::1: 7---an?

- 77.Seale 5::ee: P.O. 3ex 1531 San ?:ancisco, California 94106 San Diego, Calif =ia 92112 ,

Mr. W. C. Lester Mr. R. 3. Lisbakken Pacific Gas.& Electric Ccapany Vice President-Power Resouress 77 Beale Street Pacific ?over & Ligh: Ce=pany M San ? ancisco, California 94106 920 SW. 6th Avenue

. ?ortland, Oregon 97204 Fr. H. R. Ferry

> Chief Planning Ingineer FJ . Ralph.Deesen Pacific Gas & Electric Company Pacific ?over & Ligh: Cenpany i

O 77 3eale' Street .

920 SW. 6th Avenue San ?:ancisco, California 94106 Po : land, Oregon 97204 ;

,7 Mr. I. ?. Kaprialian Manager, Power Centrol Department Mr. D. I. Mar:in hcific ?cve; & Light Cc pany O Pacific' Gas.& Electric Company 920 SW. 6th Avenue

-77 3eale 5::eet Portland, Oregon 97204 San Francisco,-California 94106 i

.: Mr. D. E. Knigh:-

Mr. James L. M 11oy Chief Elaetrical Engineer and Vice Presiden:

> Puget Sound Power & Light Company Assistan: Manager

~~

Los Angeles Department of Water &' Fever P.O. Box 868 3ellevue, Washing:en 95C09 P.O. Box 111 Los Angeles, California 90051 Mr. G. I. 3:ede=eier Mr. Jack A.'Craig Vice Presiden:

Portland General I*.e:::10 0:npany Los Angeles Department of Water & Power [

621 SW. Alder Street P.O. Box ill .

Portland, Oregon 97205 Les Angeles, California 90051 Mr. Larry A. Sodercuis:

- Mr. R. L. Mitchell Por: land General Electric Ccmpany l Manager, Power Centracts 621 SW. Alder Scree: 1 Sou:hern California Idisen Cc=pany Portland, Oregon 97205 l

' ?.O. Boz 800 l Rosemead, Califer=1a 91770 Mr. E. W. Earding 71:e President-? ver Scyply Mr. Car: Ou3cis The Washington Wa: : ?:ver Oc=pany Senis; ?cvar Cen:: acts Ingineer Southern California Idisen Ccmpa=y ?.0. Box 3727 Spokane, Washing:en 99200

?.0. 3cz SCO

- Rosemead, California 91770

(

1 1

s

,- .: . . , ..,v-...-+- -...~,,.,,--.~u--,- *,.mrb,,,.we,-~,mwvn.,,*,,,,~m- m._,-. _.m.

...,...--m__m,, s.--__- _ _ .-- m-_ a_ __

. APPEND 8X 18

": . hn'.: ::::is

.. .... . ~**.** General Manage:

'Tae Washinc:en Wa:e ?:ue: Cenpany . . . . ... .. . . . . . . . .__. ....,. ....

.. u . .n x .<_s ...., , , . .... ....

'ene: :::, . . ::. .:.;;::.

.: ::n;:.r.; h:*. W . F.e- li".~.in;;:n 7.0. 3::: 37 7 Ins:::1~: Dir:::::

^^ "O W:sht----- ?:bli: Utility 3p:,22.ne, .!:.shing::: Dis::1::s' Associati n 1601 T:ver 3ciiding Mr. A. J. Senede::1 Seat:le, Washington 98101 Director

' Tacema City Ligh: 9 . R. Ken Dyar

?.0. Box 11007 Manage Tacoma, Washingten 98411 Public Pcver Council

P.O. Sex 1307 W. Den Caha Vanceuver, Washington 98660 O Tacoma C1:7 Ligh

?.0. Sex 11007 Mr. Larry D. ?sterson, Manage

> Tacema, Washingten 98411 Grant County PCD

~ Mr. G. 7. Vickery Box 878

- Superintendent Iphra a, Washington 98823 Sea::la City Light Mr. R. O. Ingebrigtsen

- 1015 ~hird Avenue Gran: Ccunty FUD Seattle, Washington 98104

- Box 878 Mr. 7:ed Dyer Iphrata, Washington 98823 Fever Manager Seattle City Light W. Eevard C. Ilmore, Manage '

Chelan Coun:7 ?UD 1015 Third Avenue ~ 327 N. Wana:chee Avenue, Sex 1231

' Sea::le, Washing:en 93104 Wena:chee,~4ashingten 98801 W. Jerry Garnan Seat:1e C1:7 Ligh: Mr. Ecvard Scheffen Chalan County PL*D 1013 Third Avenue 327 N. Wenatchee Avenue, 3cz 1231 Seat:1e, 'Jashing:en 98104 Wenatchee, Washington 98801 Mr. lynan Earris Mr. 7:ed W. leiberg, Manage:

Northwest Area ? cue: Mnnager Al" d-un Ceepany Of Anerica Dcuglas Coun:7 ?UD

?.0. Sex 120 1151 N. Main 5::ee:

- Vancouver, Washing:en 98660 Eas: 'Jena: hee,~4 ashing :n 98801 Mr. Rober Terrie W . Gerden Istes President U.S. Sureau of Reclanation In:alec Aluninun Corpcrati:n Mid-?acific Regien 0800 C :: age Way

?.0. 3cx 937 Sae:anen:c, California 95825 Ferudale, Washing::n 98248 W. Wayne Schafer

5. 3ernard Goldh*-a Ilectrical Ingineering A.ssociate Censui:an: 3c: bank Public Service Departnant 700 NI .*11:nenah, Sci:e 310

?c : land, Cregon 97132 164 W. Magnolia 317d.

3u: bank, Calife:nia 91503 ,

t i

7

APPENDZX 18

.. :. . . :. ::: L. a:2 ;

epc: :2.-- :f ;;;3: 7,2;- ;;:

""'~"-14: '

Servi:e De;ar:nen: ,

a:s. . . ___..___ '

119 N. Glendale Avenue ?.0. ?er 388 L.ct ._.. . ._i:: . I1205 Sacra:en: , Calif:::ia !!...

. .: . . ::; . 1:h:

: :: ys:5_ , .n a c. Mr.'Id. Te hsa

i::: Muni:1;21 Wa:e i-? ver Dep:. Oepar::s:: cf W::e ?.ss::::es

. . ; '.: . " : f is

f Av : e Sca:e cf Calif::Li

ft:z, Califernia 91109 ?.0. 3:x 338 Sacranan::, Calif:: i: ?!?

- Mr. 3:b Gille::e Mr. R. O. 01 son CE1M-E111 U.S. Bureau of Reclaca:icu 1500-116:h Avenue, SE. Lover Colorado Regien Bellevue, Washington 98004 P.O. Box 247-Boulder Ci:y, Nevada 89005 Mr.'Ea1 Moser CH2M-2111 Mr. R. J. McMullin

1500-114 h Avenue, SZ. Gacer'al Manage:

3elievue, Washington 98004 Sal: River Project C'

Mr. Bob Mooney P.O. Bex 1980

-~

Phoenix, Arizona 85001 CH2M ' dill

-- 1600 Western 31vd. Mr. Laroy Michael, Jr.

Cerva111s, Oregon 97330 Assistan: General Manager Sal: River Project Mr. Bob Gallup

., P.O. Box 1980 R. W. Beck & Associates Phoenix, Arizona 85001 200 Tower Building Seattle, Wash 1=gton 98101 Mr. R. W. Mason Manager, Power.Rescurce Developnen:

Mr. John Mangan Sal: River ?;oject Agricultural l s' 'Regicnal 7:oject Develop. Engr. I=provenen and ?cve: Distric: )

U.S. Sureau of Reclamation P.O. - 3cx 1980 Pacific Northwest Region Phoenix, Arizona 85001 i

Sox 043, 550 W..For: Stree Boise, Idaho 83724 Mr. A. J. Pfister i Deputy General Manager - Fever Mr. Me :111 J. Marts Sal: River Project Regional Supervisor of ?over P.O. 3cx 1980 U.S. Sureau of Reclacation Phoenfs, Ari:ena 85001 ;

Pacific Northwes: Region 3cx 043, 550 W. Tor: S::ee:

3cise, Idaho 83724 Mr. A. E. Pearson Presiden:

Nevada Power Cc=pany Mr. J. J. Stein P.O. 3cx 230

-- Ma=s5 1 g Director 1.as Vegas, Nevada 89151' Washington ?ublic Power Supply System ,

?.0. Box 968 Mr. John C. Gibbs l

Richland, Washi=gcen 99352 Execu:1ve Vice Presiden:

Nevada ?cve: Co=pany

"- **dp L. Cole Chief, E:gineert=g Dirision P.O. 3ox 230

' as Vegas, Nevada 39151 U.S. Ar=y Corps of E=gineers Nc :h ?acific Division 210 Custen House

?::: land, 0:egen 97209

s i

4 y , - -m- y . 9 rr. , -, + tv--r, i,

m . . _ . _ . _ -

APPENDEX 18 g.. .

.r . ; : . .. ._.... . . . . . - _ ; , _ 3 :. 3 ,.,

.. e... u- ua.. ..: " I '. ' "

,,. ::,an u .. _ ,...

5evada ?cwer Cenpany

? .0.1:n hs . .....i . : te 7

.y , y, 3 . . ; , n n ... .

M . 1:.n?.,: 3 i s':i.

oM CLi ::s :.e

1. :.

S;cks.ne, *ashin; :- .

Seni:r "ite ?residen: '

Tucscs 0 3 .!!e:: i: enps -

~

Mr. S. E. X:cdy -

? . 0. I: - 7 *.1 Scu: hen 'a'.if: = _. ..: :: 7 :-

' ""u:sen, Ari:ena 85700 . ?.0. Sex SCO Rese=ead, Califemia 9'.770 Mr. Mc =an Johnsen .

Tucsen Gas & Elec::1c Cc pany W. G. J. 3ellenger

?.0. 3cx 711 - ?acific Gas & Elec::ic Cc=pany Tucson, Arizona '85702 77 Beale 5::ee:

San 7:ancisco, Califemia 94106

.o Mr. A. R. Willia:nson

= Consultan: Mr. G. L. Nesbit:-

Arizona ?ublic Service Company San Diego Gas & Electric Company 7' ?.0. Box'21666 P.O. Box 1831

?hoenix, Arizona 85036 San Diego, California 92112

-- =Mr. K..L. Turley, 7:esiden: ~

Mr. D. A. Reddie land Chief Executive 0ffice: Los Angeles Dep:. of' Water & Power

- Ari:ena Fublic Service Ccmpany - P.O. 3ex 111

?.0. Box 21666 Los Angeles, Califc nia 90051 2 Phoenix, Arinona 85036

~ '

Mr. A..D. Hanson Mr'. Eerbert H. Hun: Northwes: ?cuer Pool Direc:ct, Operations and Engineering Coordina:ing Group Eugene Water-& Elec::1c 3 card

~

1210 Public Service 3uilding

?.0. 3cx 10148 ?ortland, 0:egon' 97204

= Eugene, Oregon 97401 Mr. Rober: L. McKinney W. Mark Crissen Taccea Ci:7 Light General Manager Cev11:2 County PUD ?.0 Box 11007 racema, Washing:en 98411 960 Ce*m=arce Longview,' washington 98632 Mr. 3cb Wilson

?acific ?cuer & Light Company X:. Merrill Schul:z 920 SW. 6:h Avenue Nc :hwes: Fever Pool Per: land, Oregon 97004 Coordina:ing Group 1210 ?ublic Service Building h. C. C. Tcung

?c : land, Oregon 97204 ?acific Gas & Elec::ic Ceepany

~

Mr. Gerden D. Jorgensen 77 3eale 5:ree:

San 7:ancisco, Califo=1a 94106 R. W. 3eck & .3ussociates Suite 1507 71:s: Federal 2 . M. D. *Inyte Savings Building Southe = Califc =ia Idiscu Cenps.n-

?heenix, Art:ena 35012' ?.0, 3cx 800 Rosa =aad, Ca'.ifc=ia 91770 8

=yw ,yw , frw,-r p- + - w =w yv. v- e s em-s,e--.

APPENDlX 18 San Diezo Gas & Elec::10 C =pany

=.p..S.. a

.. ...**0.*. .....

. . . .. s. .

i

r. . 3. . .. ... _.....3 u s .r e..., . s.. .. . . . . ,

. . > e s. ..

~7 3eale 5::aa: ::, .e. s

w. v...

.m..... . .o.a. : .- . . . a.a y.:. De is Gray Sea::le City '1ght .

1013 Third Avenue Seactie,'4ashingten 98104 eus M

.uS d

amuse

' 6 a.d

O m . e 4

+

M 4

5 1

e 1

1 3 1

I

- ___ ~%_. _ _ .J

APPENDlX 18 Third A-C In:7.:: --

_ f. . . ; . . -in, - . . .

, _ _ _ _ _ ; ; ;; =

Augus: 1 ~ , '. i .

c....:......_

~

0 r:ni:2-1en Na .a Hee Duroche:

Bonneville ? cue: Ai ints:: :ica Lyman Earris Alcoa Cur: Du3cis So. Califcznia Idison Jerry Lohr Ci:y of ?asadena Incerec=pany ? col I. 7. Ti=e

=

Sal: River ? ojec:

O Bob Mason Iarl Gjelde Bonneville Power Ad=inist:stion Jack Craig LA Dept, of Water & ?:ver Eugene Wa:e & Ilectric 3 card Hal Worces:e Pacific ?cuer & Ligh: Company

~

D. I. Martin Calif. Dep:. of Wace: Resources Lloyd Harvego Calif. Dept. of Wa:e Resources

- Dick Terreira Sonneville ? cue Adninistration Torres: C. Blood Seattle City Ligh:

~ Jerry Gar =an

- Glen I. 3:ede=eie: Portland General Electric Co.

Pacific Gas and Electric Co.

A H. 7. 3:aun Facific Gas and Elec:ric Co.

W. C. Les:er Pacific Gas and Ilectric Co.

T. S. Swearingen H. R. Per y Pacific Gas and Electric Co.

= Pacific Gas and Electric Co.

3. W. Shackelford e

l 9

1 f

l

/

1 e

l

$l i

~ - - - - . . . _,_ + * ' 1 wp,, ,. ,

l l

APPENDIX 19

.: : - -m.. . . ;.r- e e .........a... , -

~ .

, , s.

AC*dlNS'ini.,1.. .

.. . I N. . , .

3 .-.en: ci . .e r cv. - -

..-,. r JUI 9 4 dlo

.;wer e.:. .i..:svacen

.. n e. . .

. :.::= .m R E C EIV E D -

-:2.- 4. Oregen 372:s 1 July 21, 1973 .;

?

,n .sc = f.

e ,

d Calilo-Maad-?hoenix D-C In:er-ia v o In:erested ?:::iss - ? opose .

~ . .yn ; -

I t

en:lemen: L. *

-he a:: ached : py of a mesorandum f:ce S:erling of Energy, Munro and Rcher: . i

...:? hail :o Assis: ant.5ecre:::y Oecrge S. McIsa =, Depa:==en: cur.mee:ing enl,: July 1 t;

=2 izes cenclusicas reached a: 3=:h ?: ift: Nordves: and

pr:peced Callic-Mead-?hoenix d-c line. ~

?acift: Scu:hvas: representatives agreed : hat addi:icnal studies are:h n.

neefed a .d the es: lies: as.

the Ap:11 25, g<

A ne=ber of addi:ional s:udy needs were iden:ified a: ' - :

1973, =ne:ing in Las Vegas: . .;

t To :he ?::ifie Sou:hwes:-- .

754 = sin:w.. nca schedules.

0. . .

'.! main:enance ' - - .

?

.p (-

L. 2, ,* m.

done cu: side e,f :he su=me; period and, if so, h ,

. e.

of new plan: capaci h :ha: : uld be l

2. . d:f Ivaluerred

e the vi:5 amoun: 6-heur and 10-heur capaci:y available f:cm 7 de 1935,1990, and 1995 levels of developmen: f i p de fe;7both M a: Arizona-Nevada :nd Arizona-Havada-Scu: horn Cali orn . 1

. ~

3.

Oe:e =ine value of 754 c: pact:y deferrals.

verify de 102.tu everage Can:nnual de :=cun: energy be grea:delivered :? of f;:ak :o

i. ,

de ?;u in 1 yes: cu: of S. .

?o:-de ?acift: Nor: hues:-- ble, d vi:h

-f in:::: sed fell d sf s of reservoirs are accep::iden:i 1.

n:: i::vt:5 nc= 6:vn.

4:icns of 5 :: 10 hou:s peaking. .

2. S:udy v::t=us ::=ct: e

. i f

-- u

.. n _. -:. - , ~~

. _. ~q.,-. -

.--.-e - v .-:- -

c ,.. w s ;.;._ .... _.

. .,. ,,,. .,u.

,--: q- .--= e .:;-: . ...m-...,,.

~~

.m . - -:,3.: .

, . , . . , _ , . , . _ .__,_m.__..,,'~;.,.,--m.,. _m,,_my.._w, . . , , _ . . , . _ - , _ , . , , 7 .r.,,, . . . , , - - . . . ,

l .

APPENDIX 19

. l L. _

?;opo sed cetile-P.2:d-?heer.i:: .g 3;;g: :: 1.:cres::d ?:.::10:, subje::: ,

4

.;-C 'n:ct:ie -

3. Quan:ify :he bene f t:s associa:ed vi:h unif::=ing :her=s t

=ain:encn:c schedules.' i l

~

4 P.cevalue:u che ecs: e f ?:.".; caps:L:/. .

L ra:es used in the s:udy f or "

De:ermia* if :he in:eres:

, 5.

WAPA nd 3?A s:c accura:e cot.sidering :he shif:

to the /a--

g Depar: ment of Energy. .

he July 13 l Desirabiliri of pursuing :hese studies was confi =ed s:1953, 1993, and 1993. :

=ceting. Itevevc;, :he s:udy years shculd be3r nch af ? ser Resour:es, d 11 cec dina {

Citf f Wa: kins, Chief ef ou Pacift: Sou:hves:

?acift: i:o::hves study effer:s and vill :en:ac: ,

task fe::e cpresen:atives f := :ime-:o-:i=e as studies p;cs;tss. -

G the July 13 =re:ing is a::a:hed, :ese:her '".:h g An a::er. dance lis: fe ;;.

a copy of our mailing lis: of in:eres:ed enti:ics. F f

- 1

- ~4

-5 / 1 ;

-~ / ,, 3 o c, /a.z ,/ ,

j.

' /Pl /

c' b.

~

3 Inclosures: ., , r c

y.c=o d:d. 7/15/73 ,

's A::endsnes Lis: .

F.aili::s Lis: -

l.

P

.I.

i

. O G

l 1

. g' '

I

.. p % % %..s.,,.-===.l ; % " *

J F * %*A.*.

- **~~~~~~ ~ . . - = .

i APPENDIX 20 1:.:x.7.,,:

. .. .c i .. -

.. J, , .

r Ceparuf.cnt :t ~nergy- *om::co in.>:.u.nwrca

.cnneals P -er . =.n...:n * * - - t j l

PC'Ses3621 >

P:niand.Ciegen 972CS .

197o*

JUL *12* l m , .4 m IA/3?A - ? *

\

t

=. e KW.CTWCtlM TCF. GICRCI S . McISAAC .

- ASSISTANT SICRI""A?.Y

E.ISCCF,CI A??t!C.CICH3 .

e

,,,,ep ,

n

. cM: Sm* ING .TU?.C -

. ' ALHINISTT.ATCR '

I

.- ),

30!a:IVII.LI PC*JIP. ACHINIST?.A !ON " .

/ p. f ACRITC L. Me? NAIL /. ,J>

. w ,

.f.,,0, *< r. ,. . .!,.2-- . .n... CK .

VISTI?.3 A?.T.A ?'.y4IR AOMINIS!?.CICN

??.CFCSID CILILC-ET.O-?ECI, NIX D-C LINI .

S'J3J..CT : : .

F.apresen:stives o f Scansv111e ? ver Administ:stien, the Wasta:= Area

?cva:

Adminis::a:L n, and priva:e and public utili:Las a: in ?o:: in bcland, .h :heC _g:n,

! - :."* C ".- o . : and Fa.l!ic Nc :hves: a:

en July. 18,1973, :o discuss tha preposed Calilo-Maad-?hoenix dirac -curran: d-c ..

intartit. . The proposed in:ertia, a 10CC-kilev 1:pcvar ==:e than a th=usand =

sasmis:1 :. Line vould ::cas=1: Tha Sou:hvcs: v=uld pc=i: saasenal exchanges ef capact:y and ans:g-*.=en:hs cnd , c:= vers ely , '

usa Mc: hvast' rescur:ss men:hsdurins the su=s: by S: :hvas: en:ittas vould pever ganara:ed during tha vin:c: :s help =sa:

.be sen: back at:ng :he sama d-c lina :o the N ::hvas:Such ex:hangss veul

hair peak demands. -

ing peakins plan:s in bo:h ragiens.

Signift:sa:

changes in .he res=ures andaress icad pic:::es of the :oun: i= both tha y indi:a:ad

?acific Herthwes: a..d-Pacift: Sou:huss:

d in :: der :s de c:=1:e if th:: 'addi:tenal s:udies veuld be require :cgi:n's there is a . :::hing of ne region's essources to es-'--- >

he ::ha: Adit: ice leads.

:s :ake app :r.1=s:aly 12 =en:hs , vill mean an in-s er tice da:e of 7.2p;tsentatives of utili-the in:er:1e no: carlic than :he 14:e 1930's.

- /.nili:1es .

ties in er:h re;i: . vill rean.slyze : heir needs : .:es:17 in 1979 i:

Ane:ha: j:in: =ec:ing is :en:2:ively planned f::

der := de:e:=.ine fu:u = c:urs s =f a :t:n. .

- . .. y

._^..; =n 3

,_ , , . ~. ' - ' . ..:. W ._ 3. .

M ,>.-* --

a vs _

a., .:_ ,:. :..,a.e . ,,,. . - _x

.. -;a...... % ._ ., %

- ,.,., e . p a :. ., q g ,,. y ;; j. ,. g . g

, ...f_ ,

<. %-m.::N%... - " .

s.-

O*

Appendix 20 3: - C *t-

,3 -, ;c.:.:

1.v.' -

e-in;

,,,=,:t 7 : . e r ;, J.- : .i .: : : :.: i : n

, ,, , . . e i t . . --

. July IS. 9:00 A :..

_ icc.t- On AcrNa *

\ ;- ~u."~~~~~. s,A V ~s .. ' ~.-

w n.I A q ~ c~. c v *SeN"W

~ , . .

~~ ,I ww 3A4,g;

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u * .*

Y' '

(

), ,

fp/ffN "'"*

A ! A ' '

f5 , c. _ .M v uMrI L, Mi%er- $ d E bC '&' 'N 2 0SK I" 9"i X,

f,m f

f .: p . jv) g g m.g L., . SRLY &EA Sa./+ 0" '06 "T N O'*.' Y .

O'"

ha A~ Sus &iw?d SF^ .

~

, 6 .4 re < , ~ c m '

sgn -l E,fM Q, / m pf < g >.e 2 p ,= w 7m

, $. ~ % .s ' -

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b3 "'

y _RygCv ,, , ,

PwdPex:-k=*~Lw&h g g'g p- D g.g.g.st Corp- 0 'hy:/ h'PD

.D o e i\li c.k o /a.: W57Fr" A C S E '" " '" ' )

g ,s., ,,, r- 4. h4 4}.<!<<.s <?ea j? ace Ec'~-

,,z',g'),,.,,.-

Q kw W4M / l w . s. .

/V79 gg,a L . AM/LL OfFi'i . bw. *( Sr E NT '

l g gz 6~^ W

,yse ZL.:oea.e.s h/} - ?b l' C- DN/

C,%, L e3 .5c, d O

e e

a I

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AFPENDlX 20 ,

.. v... .. ....<.

. . .... . s . v. . ... t p .. .. .

.o.s.,.. s....._....s...,s..,., p.g ..a.a. .>..

. :. n. p . ?.:u : e 1, ' ? . C . ::x..53

- ' - *-e *;:u n:11 - , . .e .

.",. .: : : ', ...s ,. . . . .,

o o . ... > 2. . .. . .. .

van :uv er , WA 35560 .

a.

u.

. . . z u. . ... , ., g.,.

.....gc . ,.u. . . . . . . .

c a......

u......g..... w. ....

Sal: River ? cje::

Gren: 0:un:y TJD

, F.C. L:x 1950 1:x E73 Phoenix, A; 83C01 I;hrara., VA 93323 Mr. H:vard C. I1== s , .!snage: ' Mr. John C. Gibbs

- Exe=u:ive Vice ?;esiden:

Chelan Ccun:y ?UD Nevads ?cve: C:=pc y 3cx 1231 ?.0. Ecx 230 ,

Vena:: hee, "A 93301 Las Vegas, h-1 89131 Mr . Fr ed ". Li eb erg, Manage r

Deu;1as C=un:y TJD Mr. Eins C: eve -

1151 ' );. Main 5::ee:

Senior Vice 2:eside :

Tucson cas & Ile::ri: Ccr.p :=y Ias: We:.r.: hee, VA 98301 -

F.C. Sex 711

- Tucs==, A: 23702 Mr. Hal M : : .

e J ..u. ... : 1,.

111:h Avenue, 5.I. -Mr. R. D. Eulse 1500

Vice ?;csiden: Res:ur:s 71: =ing -

Bell evu e , *,*, A 90004 C .p a y 4

4... ... _. s. .. . b .'. ' . ". .~. . '. .. .

Mr. I:b Cal.lup

?.0. 5 x 21666 ~

?hoenix, AZ 15035 .

1.V. Seck & Asse:ie:es .

2w.. .. o...e ,.- . . . s.s.%. .

Sc:::le, VA 93101 Mr. Merrill Schul:=

W ?: er ?:e1 Ce= dir.::ing C: cup e 1 n.. o .s -- e s s ., .. 3 e .y ,. .. e .. . _d i d.' .. 3

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City o' hive: site Mr . ?.::sid 3. P.o bi e , Direc::: 3900 Main 5:re==

Riverside, CA 91501.

e;:r sen: of Va:e ?.e s curces 5.. .. .. ., . J. C . ., ., ,. ... ,- a u.. e w .J.

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A.cheim, CA 9'.300 Assis:a.: Ceners'. Ms. age:

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5 .

APPENDIX 20 I

nr . .>. . . :::.: J i-- -Pewur Supply

"'- -M l' rd *'i:e.? veide.:

?:ve: 0:::p any

n=r:L 0 unsel The '*2shing:::. h.c:

i

, . . - e . .. . ! J e :: :

e..... . .

. ;:ny -

, ..,as.. .%

, :ift: l,zs :::. .. w.

.,., .e..

..... 0;:' -- e , U A ' 99 ". 0 4 7::ncis::, CA iMOS ' '

g: I Mr. E. T. Ti:.:e x:. J: es L. Mulley In:c :=peny ?:ci chief I;e:::t::1 Insi .::: ?.0. Lex 3707 ,

j

& Assis: n: Manager & ? ver Spokane, WA 99 00 1 t,os AnSeles Dep:. :f *' :e: ;.

Mr. A'. J. 3ecedatti *

?.0. Sox 111 90051 P

Les' Angeles, CA 'Di: ecto: -

Taco =a City Light -

.?.0, icz 11C07 Mr. Al Arenal Tace =a, WA 98411 Vice ?residen:

' scu:hern California Edison C:=pany

t

?.0. Box 800 M . G. T. Vickery -

R:ss= sad, CA 91770 Superin:enden: .

Sea::le Ci:y Ligh:

Mr. R. L. Mitchell 1015 Third Avenue Manager, ?: var Cen::ac:s Sea::le WA 9S10%

Southern Calif::nis Idisen C =pany Mr. Ly=:n F.ar:is

?.0. 3 x 800 -

1:se=end, CA 91770 L'. Ar e ?:ve: Manage:

Aluminur. C:=pany of A= erica Mr. James M. Henderson ~~ -?cwer Supp1;* ?.0. Sex 120*' -

Vice ?:esidens, m.. V anscuver , = A " '

San Diego Gas & Iles::ic C:=peny

Mr. Mc:=an' C. 'Jac-ix

?.0. 3:= IS31 92112 ,

General M:nage

, San Diego, CA Ass cia:ica Me::hves: Public ?:va: ,

Mr. ?. 3. Lishakken ?.0. Sex 1307 Van:Cuver, VA 98660 Vice ?:csiden: - ?:ver Resour==s

?acift: ?oes: 6 Ligh: C:=pany .

900 SW ich Avenue Mr. '4en Zilli: Sten yo:: land, c?. 97*.04 Ixecutive

'a'eshing: nDire::::J:il.

?ubit: Ots :i:.s Asse:.

Mr. D. ii. Knigh: 1601 Tover Zuildins S ea::le ,'n'a 93101 .

Vice ?:csiden: 5:end ?: er & Light Company

?use: e Mr. Karl A. Johnson

. 0 . 4 .e-A. .eD. Ci:y M: nager

.e.tevue, A .e00e.

r. .

a. City of ?::adena

. .'a,. . . 100 N. 04:.,is.d . Avenue

.u. ... G. .. . . c. -.e , e

? sad:ns, CA 91109

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,, 4

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3. o . . . . . a... .. ,. . s. 4.

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3. . ,. ... .e. . ....... .e.....

u ,.

,, ', ,J eva e . :

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C . . '. a . , C ?. . .~

~/ .P.

Div. of Cate: ado gescu::es

)

n.-.....-- ?.0. 3 x 19090 ,

Las Veg:s , h*/ 39119 .. .. ,!

Mr. R. C. Olsen, Arcs Manager . . . . . . . - . _ _ .

Weste:. ?:wc Ad=inis*::tica .

/

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APPENDfX 21 o,n-p.*Jn *' h: =*A:

L '

^ * * -

3. . .' J D :

I QW v vm

9. ., ;, ;;-

I.E5dE5".c.

Mr. Argil Toalston, Chief Power Supply Analysis Section

- Antitrust and Indemnity Group Office of Nuclear Reactor Regulation Nuclear Regulatory Comission Washington, D.C. 20555 Re: San Onofre Nuclear Generatino Station, Units 2 and 3

Dear Mr. Toalston:

You have requested that the City of Riverside answer specific questions in connection with your review of the operating license applications for San Onofre Nuclear Generating Station, Units 2 and 3. Our answers to those questions are as stated below.

The City of Riverside, along with the f.ity of Anaheim, is a prospective participant in the San Onofre Nuclear Generating Station, Units 2 and 3.

Both cities are concerned that the operating license for both units be issued as cuickly as possible. While there are certain matters at issue between each of the Cities and Southern California Edisen Company (Edison),

the predominant participant in the San Onofre plant, these matters are currently the subject matter of ongoing litigation between the Cities and Edison at either the Federal Energy Regulatory Comission, or in the Federal District Court. The Cities urge that the NRC Staff take all steps necessary to complete its review as quickly as possible and grant t.ne operating licenses for the San Onofre Nuclear Generating Station, Units 2 and 3.

Question 1: On January 21, 1977, you wrote to Mr. Rocert L. Myers of the Southern California Edison Company expressing an interest in participating in the Palo Verde Nuclear Plants and inquiring of Edison as to the availability of transmission from the plant. Were any transmission alternatives considered other than the one with Edison? If so, what was considered? If not, why not? What are the reasons that Riversice did not ulti-mately choose to participate in the Palo Verde Plant? Under what conditions, if any, would Riverside hate chosen to partic-ipate in the nuclear plant? Under wnat ccnci ions, if any, would the Arizona Public Service Comoany nave permitted River-side to participate in the plant?

O V goo I ( ootl6 (, ra y . ~_ @ d ~.

1 APPENDIX 21

~~ *- -

.in.ary , ;NC

. ~ . a ~. M.e c i ~ . ; . s . .. . . .. .

'fers o' ne Soutrer- aid' -it P :- : .:1- := :':.

~~~ Eiverside Was C si:eri

i- $?' -~i~s**

. .i .' I '

Ii/er Prcject (SR ; ..nerein.er:. :' c: :::. 1 1 :: :':- ;

f SRP's ownersni; in e es- in .r ;. ,

i .: I 1: :11:

1 :s.

2.i<e-sics was als , at tna -i , : :. ::::11 2 i:':1 -

he Sanceser: Nuclear 3enera:1 ; I :ti:n. M -1: teer ru;;es - .

ec :na: Edison's transmissi:n '.ine #r:r :ne Pa : .'erde : oja::

-be looped in to the Sunceser: Project. .4creover Edisen was ,

the only Palo Verde participant, a: tnat time, with a neec to brino power ta California. Thus, Edison's proposed trarsmis-sion line appeared to be the only viable proposal for trans- ,

mission from Palo Verde to California. Since Riverside was contemplating possible ownership in both Sundesert ano Palo Verde, it appeared appropriate for Riverside to acquire an ownership interest in transmissien lines from both projects bringing power to Riverside. Riverside's ownership interest in both of the projects was not sufficient to have permitted Riverside to construct transmission lines except on a join:

participation basis with other participants in those orojects.

Riverside would have considered any transmission scheme .vhich crovided for (1) Riverside's rights to firm transmission over the system; and (2) Riverside's cost would be based con cos:

of the transmission system. ~ Riverside ultimately was no: able to participate in Units 1, 2 and 3 at Palo Verde because SRP entered into arrangements with the Department of 'Jater and Power of the City of Los Angeles wherein SRP sold a pertion of its cwnership interest in the Coronado Generating Sta ion ::

Los Angeles with the proviso that anen the Paio Verde 1, 2 and 3 Units came on line Los Angeles' ownersnip interest wcult transfer from Coronado to Palo Verde. There rere no other Owner-ship interests in the Palo Verde Units which Riversi e could acquire. If an ownershic interest in Palo Verde had been avaii-able, Riverside would have attemoted to ac:uire such ownersnic interest. We do not know under wnat condi icns, if any, Ari:ana Public Service Company would have permittec ?.iverside :: :artied-pate in Palo Verde 1, 2 and 3 Units. I was aware :nat Ananeim had comunicated witn Ari:cna Public Service C:ncany regarding possible acouisitien of an ownership interest and that ananeim was told that no ownership interest from Ari:ona Public Service

- Company was available from Palo 'lerce 1, 2 and 3.

OLcst'en 2: Has Riverside taken any services uncer i s In ecrate: Ocers-ions Agreement (ICA) anc associated agreemen s witn s:isen? I# nc:,

wny not? If so, has Riverside ex:erien:ec anv :artic.dar ci##' - ~

culties? Did any :utside engineering :r econcmic c:nsui ants assist Riverside in working Out ne ter s an: ::nciti:ns ' :ne 10A and related agreemen':s? Have the *er s an: ::ncisions :#

the ICA and related agreements been in er:re:sc as Riverside initially underst od them? If not, wna: : nan;es in ne in:er-pretation have occurred?

i

o

, r ,

APPENDIX 2'l I t

2 ' * ** \.?

.,a*.a"f , i M yp.".

. . c. . . 2: * . . . . . i . ' *. i i r 1. 5 ". . h ' a ". .. . . l

.. a-- .4., ;

4.. . %. . .q ], ,

. . .,3 3.g, . , _ ,y , 3

1 i; ' :: ar 1;ris i.. .' Neva:1 ::..ar ~:- t* : .':1: 5 *

' s e s e . :. . I:is:n a;rie: :: :r .':s ints ~.:::. i J..:-

'n .e '- ' c : arer;f f :- .ne levi:a' -

E:is:n . :s :: ra: :

...... :: ...c ~, . . f f "*..arsi~a. ~ ~.a *. S n a r;y e.13 i " ~ i - # 1 *. a *

,f Edis:r. in ad::,r:an:a witn :ne er.s :f an Agree en Of .

.ne; ration. Inc transmission of .':n-Firm Ener;y wi-h :.iverside.

~

Tha: Agreerent was entered into prior to,the conclusion of negotiations between Riverside and Edison for the Integrated Operations Agreement. However, it was agreed that the parties would operate in accordance with Exhibit A of the Settlement Agreement between Riverside and Edison and others, which Exhibit _

A contained the principles which served as the basis for the negotiations of the Integrated Operations Agreement.

Edison and Riverside have had a dispute concerning Edison's obligations to. provide Riverside interruptible transmission service under the 1972 Settlement Agreement and subsequently the Integrated Operations Agreement. .It is Riverside's posi-tion that Edison is required by the terms of the Settlement Agreement to use its best efforts to provide interruptible transmission service over Edison's facilities for tne City of

- Riverside. Edison contends that interruptible transmission was not one of the services which it agreed to provide under the terms of the 1972 Settlement Agreement and, therefore, has -

refused to incorporate the provisicns for interruptible trans-mission service as one of the services offered under.the Inte-grated Operations Agreement. This is of particular imocr<:ance since Edison is required under the Integrated Operations Agree-ment to schedule and dispatch all of Riverside's integrated 9

resources as if they were owned by Edison. As Edison contenes

' that interruptible transmission is not one of the services that it is required to provide under the Integrated Goera: ions Agree-ment, it has applied a different stancard concerning the orovi-sion of interruotible transmission service. Edison's cosition is that interruotible transmission service for :.iverside is subject to interruption by Edison for any reason, unether justi- ;

fied or not. Riverside's energy from Nevada oower Company is not treated by Edison in the same manner as if it were Edison's owner energy. It is trea:ed as "second class" ':y Edison, an:

if Edison, for whatever reason, wishes to interrupt the trans-

...ission of that energy, it does so. The City of Riverside thus has suffered numerous interruptions with res:ect to the trans-

mission of energy from . Nevada ?cwer Comoany o the 'ity o#

Riversice. The unavailability of transmission has mean: -ha:

Riverside has been retuired to curenase nigner crice ene*gy from Edison rather than take advantage c# the lower :os: energy available from 4evaca Power Comoany.

, t t

,.,.;,..,..L.m... , ,_;;.; ., -.-O .. ~ ..,.,,,,,a ,. ~ a. _ .,. 4.. _ ... .. _ . -

APPENDEX 21 e .: i

.>..z...

. ; arzi:cliGr. J :in.:n .i = ri n = := :: inn an:

sesi:e. In ann :-

u.: :e :s e = = '-'

. .. :r :.i <ersia

.: : -.s c:s-- - -- " ~ = '~2 s: C ?" 2.ree

? ent is s ~s ters' D E ';. "sguisery

' .--1:sien,

.f n to the f.r' n...

dis::::s: r : - - 1's nul: re :ma:n: cefore that

~;-ission for resoluten.

Duestions 3: Are there any other matters that you are aware of that you think the NRC. Staff should consicer in its review as to whether anti-

trust related significant changes have occurred in Edison's activities?

Answer 3: As indicated in the beginning of this letter, there are a number of issues in dispute between Riverside and Edison. With respect to the wholesale rates which Edison charges Riverside and its other wholesale customers, Riverside, along with the Cities of Anaheim, Colton, Banning and Azusa, California, have alleged before the Federal Energy Regulatory Commission in Docket Nos.

E-8570, ER 76-205.and ER 79-150 that Edison's rates as filed create a " price squeeze" situation when compared with Edison's similar retail rates, and that this " price squeeze" results in price discrimination which is illegal under the Federal Power Act. The five Cities have also brought a trebel damage antitrust suit in Federal District Court, (Central District of Californisi, alleging, among other things, that the price squeeze created by Edison's wholesale rates is illegal under the antitrust laws of the United States.

Riverside, along with the other Cities, in their antitrust action against Edison in Federal District Court have alleged that Edi-son's foreclosure of the bulk power supply market is in violation of the antitrust laws of the United States.

The Cities are also involved in litigation with Edison concerning Edison's activities to foreclose the Cities from access ^o alter-native bulk power supplies. This litigation includes Docket No.

E-7777 (Phase II) and Docket No. E-7796 before the Federal Energy ;

Regulatory Commission. These proceedings concern investigation by the FERC of the California Power Pool, and Pacific Intertie

. Arrangements, which are those arrangements concerning the trans-mission facilities between the Pacific Northwest and California.

The Cities have alleged that Edison alone, and in conspiracy with

' the California Power Pcol Companies, have acted to foreclose the

~f ties, as well as other nunicipal systems in California from access to available energy in the Pacific Northwest. Cities 61so alleged that Edison, alone and in conspiracy with the other Cali-fornia Power Pool Companies, have agreed to divide the California bulk power supply market so as to insure that municipals lo-cated within the service area of the systems such as that of South- I een California Edison Comoany, will not obtain power on an economic basis from other private utilities in Califernia.

I 1

= -- -. v- . , . . , , _ , , _ __ _

APPENDIX 21

.... :s vanuary

,i:s

... a. ......

.2.. .. .. ... . ...... ..

e.

..es . s . ,.

. ..;.. .. ......a. . 2. ...

.a..

. .. 2:a. ..... . ..... ..

. - a . :. .. .. a. . .. :. ...... .. .. .. .. .. ,. . . .. .. ..,.,. e . . : . ~=. *. . . _ . . .. . 2... i ,,

a ,

.s...,

.r.. . + a. ,. . ses... y ..ne .*.'~;.*... .'. ..' . .=..~..

. : e .. s . . 3 (,,

m....

.... . e. :. . e. s.

.3..., .a . .. j $ j g ,.. .... 3, . d.. ..... . . .2.. : p s. . w*iS*.ri~.~. .'* . . ..

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v i . w - . ,.e n , y . .. .a. . . e.r. w 2..,~ .

.s g a i n u re, a. .. r..s . . .s c.1'.

.c .. ..

.its review anc gran tne c;,eratir.g license as;;i:r. ;.3 f:,.- the San Onofre Nuclear Generating Station L' nits 2 anc 3.

1 Very truly yours,

"' Y OF RIVERSIDE tverett C. Ross Public Utilities Director ECR:ns i

e a

e o

I l

k.

i

-____________-r_:______1____,________________ _ - - - - - -- , . _ . . ._ ..)

2 s ,.

h a

e APPEND 1X 22

/f2T' ' 'KJh Y.5 :: :: :::E u.=.u.= : : .

i{ :%~s-d k

. .a+?.

-s .2

. .. e n . -gv January 8, 1980 Mr. Argil Toalston, Chief Power Supply Analysis Section

Antitrust and Indemnity Group.

Office of Nuclear Reactor Regulation ;

Nuclear Regulatory Commission Washington, D. C. 20555 ,

Re: 1 San Onofre Nuclear Generating Station, . Units 2 and 3 i

Dear'Mr. Tealston:

You have requested that the City of Anaheim answer specific questions in connection with your review of the operating license applications for San Onofre Nuclear Generating Station, Units 2 and 3. Our answers to those questions are as stated belcw.

The City of Anaheim, along with the City of Riverside, is a prospective participant in the San Onofre Nuclear Generating Station, Units 2 and.3. Both Cities are concerned that the ,

operating license.for both units be issued as quickly as possible. While there are certain matters at issue between each of the Cities and Southern California Edisen Company (Edison), the predominant participant in the San Onofre plant, ,

these matters are currently the subject mattar cf ongoing litigation between the Cities and Edison at either the Federal Energy Regulatory Commission, or in the Federal District Court.

The cities urge that the NRC staff take all steps necessary to ce=plete its review as quickly as possible and grant the operating licenses for the San Onofre Nuclear Generating Station, Units 2 and 3.

Question 1:

In your March 24, 1978 letter to Mr. R. L. Myers of Southern California Edison Ccmpany, you stated that the California Energy Resources Conservatien and Development Cc= mission in reporting to the Legislature had suggested that the participants in the proposed Sundesert Nuclear Project purchase from Edison an interest in the Lucerne Valley Project. Please provide any documentation or other basis that would have suggested to the Energy Ccmmission that Edison would offer or allcw participatien in Lucerne. gg 4,., ,,j ofL0 I 01010 3N- 7/ / #20 . i

%I b b i

. :...: . ... .:: v.: > . :-

1 APPENDIX 22 l

I

.. ;jil C:alsten, Chief 1930 l 4

51;i .

Answer 1:

Anaheim has no 1nfermation er dccumentation tha: w:uld sugges

~

i

na: Edison would have' allowed participsti:n 1.- its pr:p:sef ecmbined cycle plant to be constructed in Lucerne Valley. :::r are we aware of any. documentation which the Energy Ccmmissien '

had that suggested that Edison would offer or allow participation in that plant.. In fact, pursuant to a letter from Robert L.

Myers, dated May 1, 1978, (a copy of which is attached) Southern California Edison stated that it would not offer participation in the -Lucerne Valley plant to Anaheim. - ,

Question 2: .

In October, 1976, you wrote to Mr. K. L. Turley, President of Arizona Public Service Company,-expressing an interest to ,

. participate in an amount of 50 mw in each of the Palo Verde Nuclear Units.1, 2 and 3,-together with the related transmission lines to California. What response did Anaheim receive? What transmission alternatives did Anaheim consider other than joint ownership with Southern California Edison? .

What are the - reasons that Anaheim did not ultimately choose to participate in the Palo Verde Units? Under what conditions, if any, would Anaheim have chosen to' participate in the Units?

Under what conditions, if any, wculd Arizona Public Service Company have permitted Anaheim to ' participate in the Units?

Do you know why LADWP chose to participate in the Units, whereas Anaheim did not'. Do you know LADWP's arrangements for transmission from Palo Verde to California? ,

Answer 2: .

I Attached hereto is a copy of a letter from Thomas G. Woods, '

Jr., Executive Vice President, Arizona Public Service Ccmpany, dated October 28,.1976, stating that Arizona Public Service Company was unable to offer the City of Anaheim any of its ownership interest in the Palo Verde Nuclear Generating Station, Units 1, 2 or 3. Moreover, this letter indicates that Ari:ena

- Public- Service Company did not have authority to dispose of the cwnership rights of any other participant in the Palo Verde Nuclear Generating Station, Units 1, 2'and 3. At the time of t a October,1976 letter which I wrote to Mr. K. L. Turley of Ari ena Public Service Ccmpany, it had been suggested that a transmission line f rom the Palo Verde Nuclear Generating Station would be looped in to the Sundesert Nuclear PrcJect in which Anaheim was a proposed participant. Thus, it was contemplated that Anaheim could obtain joint ownership in the transmission lines frem both of these pro]ects. Anaheim would have censidered any transmission scheme which pr:vided for (1)

Anaheim's rights to firm transmissien over the system; and 2) s

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

APPEND 8X 22-

. 1.;_; :J.:::- Chi-f

'n-:--- = :?;

s;= , 4 Anahs:r's ::s: w:uld be bassf .upen the cest of the transmiss;:r syster. 1 accu.d ce n::si, t.: wever, that Edisen was, at th::

tims, :ns : n '. ; 'Psle Verde participant with a need to bring :: war '

wes: ' :: .._.f:enia. Inas, Il_ :n's propcsed.transmissien line appears; : La the.cnly viatie propcsal-fer. transmission fren ;

Palo' Verde. Anaheim was told.that there was no available.

.. ownership' participation to be acquired in the Palo Verde 1, 2

, and 3. units. Anaheim would have participated in those units if ownership rights had been available. We do not know under what conditions, if any, Arizona Public Service would have permitted Anaheim to participate in the Palo Verde 1, 2 and 3.

units. It.is our understanding that the Los Angeles Department 7 iof Water cnd Power (LADWP) acquired from-the Salt River Project ;

(S RP ) ownership- rights in SRP's Coronado Generating Station. ;

LThat arrangement prov1 des that when .the Palo Verde 1, 2 and 3 units become available that the ownership interest of LADWP in- ?

the Coronado units will transfer to the Palo Verde 1, 2 and 3

. units. We are not familiar with LADWP's. arrangements for transmission from Palo -Verde to California.

Question 3:

. Has Anaheim taken any services under its Integrated Operations Agreement.("IOA") and associated agreements with Edison? If not, why not? If so, has Anaheim experienced any particular difficulties?- Did any outside engineering or economic consultants assist Anaheim in working out the terms and conditions of the IOA and related agreements? Have the terms and conditions of the ICA and related agreements been interpreted as. Anaheim initially understood them? If not, what changes in the interpretation have occurred?

Answer 3:

Anaheim entered into-the Integrated Operations Agreement with Edison on November 29, 1977. Prior to that date, Anaheim entered into an agreement with Nevada Power Company to purchase non-firm energy. Edison agreed to provide interruptible

- transmission for that energy from the Nevada-Edison interconnection point to the City of Anaheim. That energy was integrated by Edison in accordance with the terms of an Agreement of Integration and Transmission of Non-firm Energy with Anahei.h.

That Agreement was entered into prior to the conclusion of negotiations between Anaheim and Edison for the Integrated ,,

Operations Agreement. However, it was agreed that the parties .

would operate in accordance with Exhibit A of the Settlement [

- Agreement between ' Anaheim and Edison and others, which Exhibit A-contained the principles which served as the basis for the t

- um-..-r reeme+==ws-we- no 's ,w s ...s n.-r.-. , - - # ---,.,,m.--- .,.e**,ww~,- mie .ve y. = - . _ .w-.an,w,--y-w,--v,-vv-r-w.,wa.-.,--vw,w<

l l

APPENDXX 22 1

Mr. Arcil Toaiston,-Chief

' = ; t . . _ . . .. _ ..

he In:e: ::..' : 7.;_: 1:n: t r::- -*

Ef;; ' m:h sim ha /e ".af 1 ":-- :: ncer-i e I::s:n's ,

bli r - - :: Or: vide Anane:r interrup::ble rs.smissi:n service :nner the 1972 Settlement ngr+ement and sL:sequently the Inte?ratef Cperations Agreement. I: is Anaheim's posi:1cn that Ed:sen is required by the terms of the Settlemen:

Agreement to use its best efforts to provide interruptible

' transmission service over Edison's facilities for the City of ,

Anaheim. Edison. contends that interruptible transmission was l not one of the services which it agreed to provide under the terms of the 1972 settlement Agreement and, therefore, has refused to- incorporate the provisions for interruptible transmission service as one of theThis services offered under the is of particular Integrated Operations Agreement.

~

importance since. Edison is required under the Integrated l Operations Agreement.to schedule and dispatch all of Anaheim's integrated resources as if they were owned by Edison. As Edison contends that interruptible transmissien is not one of the services that it is required co provide under the Integrated ;

Operations Agreement, it has applied a different standard concerning the provision of interruptible transmission service.

Edison's position is that interruptible transmission service for Anaheim is subject to interruption by Edison for any reason whether justified or not. Anaheim's energy from Nevada Power Company is not treated by Edison in the same manner as if it were Edison's own energy. It is treated as "second class" by Ediscn, and if Edisen, for whatever reason, wishes to interrupt the transmissilon of that energy, it does so. The City of Anaheir thus has suffered numerous interruptions with respect to the transmission of energy f rom Nevada Power Ccmpany to the City of Anaheim. The unavailability of transmission has meant tha: Anaheim has been required to purchase higher price energy from Edisen rather than take advantage of the lower cost energy )

available from Nevada Power Ccmpany. i Che Integrated Operations Agreement contains a provision for the arcitration of disputes which arise between Edison and Anahe;r. In addition, it would be the position of Anaheim :

.that to the extent that the Integrated Operations Agreement is subject to the jurisdiction of the Federal Energy Regulatcry C mmissi:n, disputes under the ICA could be brought before.

tha: :: missien for resolution.

Cuesti:n 4:

Are there any other matters that you are aware of that you think that the NRC staff should consider in its review as to l whether antitrust related significant changes have occurred l 1

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1 APPENDZX 22

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Answer 4:

As indicated.in the beginning Of nis letter, chare ar* a Encmber cf; issues in~ dispute b2 .sen' Anaheim and id:s:.. With ,

respect to the. wholesale rates'which Edisen chargis Anaheim

-r. and its other wholesale custcmers, Anaheim, along with the

-Cities of Riverside, Colton,LBanning and Azusa, California, have' alleged before the Federal Energy Regulatory Ccmmission in Docke: Nos. E-8570, ER 76-205 and ER 79-150 that Edison's - ,

rates as filed-create a." price squeeze" situation when compared with Edison 's similar retail rates , and . that L this " price squeeze" results in price discrimination which is illegal under the Federal Power-Act. The five Cities have also brought a !

treble damage antitrust suit in Federal District Court (Central District of California) alleging, among other things, ,

that the price squeeze created by Edison's wholesale rates is illegal under the antitrust laws of the United States.

' Anaheim, along with the other Cities , in their antitrust action against Edison in Federal District Court, have alleged that Edison's foreclosure of the bulk power supply market is in violation of the antitrust laws of the United States.

The Cities are also involved in litigation with Edisen ;

concerning Edisen's activities to foreclose the Cities fr:m access to alternative bulk p:wer supplies. This litigation includes Docket No. E-7777 (Phase II) and Docket No. E-7796 These before the Federal Energy Regu' atory Commission.

proceedings concern investigatien by the FERC of the California Power. Pool, and Pacific Intertie arrangements, which are those arrangements ::ncerning the transmission facilities between the Pacific Northwest and Califernia. The ;

Cities have alleged that Edison alone and in conspiracy with [

i the California Power Pool :: panies have acted to foreclose the Cities, as well as other .unicipal systems in California, frem access to available ener7y in the Pacific Northwest.

Cities also alleged that Edisen, alone and in conspiracy with the other California Power Pool ecmpanies, have agreed to divide the .Califernia bulk p:wer supply market so as to insure that municipals located within the service area of one of the systems such as that of Sou nern California Edisen Ccmpany, will not obtain power on an ecenemic basis fr m other private e utilities in California.

Thus, whi. 2dison's activities with respect to Anaheim raises i a number of significant antitrust questions, it is the position I

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l APPENDEX 22

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ccmplete its review and grant the Operatin~ e licensa applica 1cns for the San Onofre Nuclear Generating Station, Units 2 and 3.

Very truly yours, Gordon W. Hoyt General Manager l

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ML20126K012

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Dear Hr. Drake:

Dear Mr. Toalston:

Dear'Mr. Tealston:

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ML20126K012

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Dear Hr. Drake:

Dear Mr. Toalston:

Dear'Mr. Tealston:

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