ML20126L428

Summarizes 800527 Telcon W/City of Kutztown,Pa Electric Dept Re Negotiations for Wholesale Power from Util.City of Kutztown Presently Not Interested in Participation in Facility

ML20126L428
Person / Time
Site:	Susquehanna
Issue date:	05/27/1980
From:	Dewey L NRC
To:	NRC
Shared Package
ML17139A192	List: ML20126L428
References
NUDOCS 8106030071
Download: ML20126L428 (3)

Text

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.Q MEMORANCUM TO: File s

FROM: L. S. Dewey

SUBJECT:

SU$QUEHANNA OL REVIEW', PENNSYLVANIA PCWER 1 LIGHT, OKT, 50-387 and 50-388 CITY OF KUTZTOWN TELEPHONE INTERVIEW On May 27,1980 the undersigned called the City of Kutztown, Pennsylvania's Electric Department and spoke with Mr. O. L. Sheet:, Department Superintendent.

(215-683-3202). ' Mr. Sheetz has acted in this capacity since 1972. According to Mr. Sheetz, the City of Kutztown has no generation. Its peak load is about 6.7 MW. It is presently a full requirements wholesale purcnaser from the Metropolitan Edison Company.

The unders.igned questianed Mr. Sheetz about Kut: town's negotiations for wholesale power from PP&L. Sheetz stated that he was not the ~most knowledgeable person concerning these negotiations. City Counc'ilman Richard Landis, who has an electrical engineering degree and is the Councilman in charge of oversignt witn respect to the Kutztcwn electric utility, has done most of the negotiations on behal f of Kutztown witn PP&L. [215-439-5103 (W) and 215-683-3155 (h)].

According to Sheet:, Kutztown and PP&L have been negotiating for wholesale 1

service for about the past three years. Kutztown would rather purchase power from PP1L because its rates are lower than Metropolitan Edison's. However, Sheet: reports that Kutztown has still not decided 4hether the overall deal l

would ce eneaper cecause it will be necessary to pay Metropolitan E:ison a wheeling charge to transfer the PPSL power to Kut: town. There is only about seven miles from PP&L's service area to the City of Kut: town, but Sheetz believes that this line would te so expensive that wneeling would :e enea:er.

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(Apparent 1y' paying for the right orway would be very expensive.) .Xutztown i s presently doing some research to resolve these cost problems and meetings between Xutztown, PP&L and Metropolitan Edison are scheduled in the near future.

According to Sheetz, wholesale power is the only area in which Kut: town has negotiated with PP&L. Up to this , point, Kutztown has never attempted to join in generation projects with ot'her utilities. Sheet is aware of a Pennsylvania Municipal . Utility Association and the proposed legislation concerning joint generation. However, he states that up to this point the association's activities have been almost negligible and he is not aware of the details of the proposed legislation. He refers us to Richard Landis for greater details concerning these subjects.

Based upon Mr. Sheetz's reports about City Councilman Richard Landis' ex-perience in Xut town's negotiations with Met. Ed. and ?P&L, on 5/10/30 the undersigned telephoned Mr. Landis. Landis reports that last week Xut: town officials met with PPSL and Met. Ed. to determine wnether Met, Ed's wheeling charges and PP1L's wholesale power rates are sufficiently low whereby Kut:-

Based town should reolace Met. Ed. with FPLL as its wholesale sucolier.

upon what he has seen thus far, Landis believes tnat Xut:::wn snould ma'<e this change. (Met. Ed's rates are inordinately high because of TMI).

However, before any change in suo' pliers can te made, there are two years Ed. He t. Ed.

still existing on Kut: town's power suoply contract with Met.

is not apoosing Kut: town from changing sucpliers, but it insists that this j

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i two year c:n ract period #fes: exofre,

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Landis reports that PP&L is treating Xut::own fairly. However, this was not l

the. case three years ago when Xut:tcwn first aporoached. ?P&L about wholesale service. At that time PP&L was insisting that a large surcharge be tacked onto its wholesale rate. - .

Mr. Landis reports that the Fa. Municipal Utilities Assoc. (FMUC) has been in existence for about 20 to 25 years. There are about 20 to 25 municipal members including Kut: town. PMUC in the past has not been a very viable organi:ation, but the members do meet several times a year. Currently ?.'fCC t is sponsoring pro:osed legislation before the Fa. State legislature which will unable municipals to form joint ventures with other municipals in electrical generation units. Landis is sending the undersigned materials ,

with respect to the proposed legislation and the PMUA.

Landis reports that several years ago F?$L offered Ku:: town an cwnership share of the Susquehanna Nuclear Project. In addition, PP&L is still prp.

pared .to of fer unit power from Susquehanna. Landis states that Xut: town has not been or is not presently interested in particication in Susquehanna.

t f Respectfully su:mitted, 4 Wrh %M Lee Scott Dewey Counsel for N?.C Staff i

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