ML20129D387

Forwards Directors Decision Under 10CFR2.206. Concludes That Issues Raised by Cpp Towards CEI That Could Be Remedied by NRC Have Been Addressed & Resolved in FERC Proceedings & Require No Further Action by NRC

ML20129D387
Person / Time
Site:	Davis Besse, Perry
Issue date:	10/17/1996
From:	Miraglia F NRC (Affiliation Not Assigned)
To:	Straus D SPIEGEL & MCDIARMID
Shared Package
ML20129D393	List: ML20129D387 ML20129D411
References
CON-#197-17998 2.206, A, DD-96-15, NUDOCS 9610250009
Download: ML20129D387 (4)

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UNITED STATES g

g NUCLEAR REGULATORY COMMISSION 2

WASHINGTON, D.C. 2066tWOO1 p

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g October 17, 1996 David R. Straus Spiegel & McDiarmid Suite 1000 1350 New York Avenue, NW.

Washington, DC 20005-4798

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Dear Mr. Straus:

The City of Cleveland, Ohio, which owns and operates Cleveland Public Power (CPP or the City) filed a Petition with the U.S. Nuclear Regulatory Commission (NRC) in a letter dated January 23, 1996. The Petition requests that the NRC, pursuant to 10 CFR ff 2.201, 2.202, 2.205 and 2.206, find that the Cleveland Elee+ric Illuminating Company (CEI) is obligated to provide the wheeling and i-

.:onnection services as specified in the Petition and allegedly required t, ;

ne Antitrust License Conditions that are a part of CEI's license for the

.Davis-Besse Nuclear Power Plant, Unit I and Perry Nuclear Power Plant, Unit 1, enforce the Antitrust License Conditions, and impose " appropriate fines."

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Supplements to the Petition were filed on May 31 and August 13, 1996.

Four specific violations of the Antitrust License Conditions are alleged in the City's 5 2.206 petition. The first allegation is that CEI has violated License Condition Number 3, concerning wheeling service, by refusing to provide 40 MW of firm wheeling service from Ohio Power Company to CPP to provide electrical service to Medical Center Company, a former CEI retail customer. The second allegation is that CEI has violated License Condition Number 6 and 11, concerning the sale of emergency power, by contracting in the 1987 "Centerior Dispatch Operating Agreement" to provide Toledo Edison Company emergency power on a preferential basis. The third allegation is that CEI has violated License Condition Number 2, concerning the offering of interconnections upon reasonable terms and conditions, by failing to offer CPP a fourth interconnection point. The fourth allegation is that CEI has violated License Condition Number 2 by imposing unreasonable deviation charges for unscheduled power delivered over existing interconnections in excess of the amount scheduled for delivery, t

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D. Straus.

After consideration and careful review of the facts available to the staff, and the decisions reached in parallel proceedings involving the same parties and similar issues before the Federal Energy Regulatory Commission (FERC), I have concluded that the issues raised by the petitioner that could be remedied by the NRC have been addressed and resolved in the ?ERC proceedings so as to require no further action by the NRC. As a result, I l

have determined that no proceeding should be instituted and no further regulatory action by the NRC is required.

The reasons for my decision are explained in the enclosed " Director's Decision under 10 CFR 6 2.206."

This

' Decision and the enclosed Notice will be filed with the Office of the Federal Register for publication.

Sincerely, Original signed bt Frank J. Miraglia Frank J. Miraglia, Acting Director Office of Nuclear Reactor Regulation Docket Nos. 50-346 2

and 50-440 (10 CFR 6 2.206)

Enclosures:

As stated (2) cc w/encls: Sharon Sobol Jordan Director of Law William T. Zigli Chief Assistant Director of Law City of Cleveland, Ohio 106 City Hall 601 Lakeside Avenue Cleveland, Ohio 44114 Glenn S. Krassen Climaco, Climaco, Seminatore, Lefkowitr and Garofoli, Co., L.P.A.

The Hallo Building, Suite 900 1228 Euclid Avenue Cleveland,. Ohio 44115 See next page DISTRIBUTIM:

See attached page

• See previous concurrence.

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s Davis-Besse Nuclear Power Station Toledo Edison Company Unit No. I cc:

Mary E. O'Reilly Robert E. Owen, Chief Centerior Energy Corporation Bureau of Radiological Health 300 Madison Avenue Service Toledo, Ohio 43652 Ohio Department of Health P. O. Box 118 Columbus, Ohio 43266-0118 Mr. James L. Freels Attorney General Manager - Regulatory Affairs Department of Attorney Toledo Edison Company General Davis-Besse Nuclear Power Station 30 East Broad Street 5501 North State - Route 2 Columbus, Ohio 43216 i

Oak Harbor, Ohio 43449-9760 Mr. James W. Harris, Director Gerald Charnoff, Esq.

Division of Power Generation Shaw, Pittman, Potts Ohio Department of Industrial

& Trowbridge Regulations 2300 N Street, N.W.

P. O. Box 825 Washington, D.C.

20037 Columbus, Ohio 43216 Regional Administrator Ohio Environmental Protection Agency U.S. NRC, Region III DERR--Compliance Unit 801 Warrenville Road ATTN: Zack A. Clayton Lisle, Illinois 60523-4351 P. O. Box 1049 Columbus, Ohio 43266-0149 Mr. Robert B. Borsum Babcock & Wilcox State of Ohio Nuclear Power Generation Division Public Utilities Commission 1700 Rockville Pike, Suite 525 180 East Broad Street Rockville, Maryland 20852 Columbus, Ohio 43266-0573 Resident Inspector Mr. James R. Williams U. S. Nuclear Regulatory Commission Chief of Staff i

5503 N. State Route 2 Ohio Emergency Management Agency Oak Harbor, Ohio 43449 2855 West Dublin Granville Road Columbus, Ohio 43235-2206 Mr. James H. Lash, Plant Manager Toledo Edison Company Mr. John K. Wood Davis-Besse Nuclear Power Station Vice President-Nuclear, Davis-Besse 5501 North State Route 2 Centerior Service Company Oak Harbor, Ohio 43449-9760 c/o Toledo Edison Company Davis-Besse Nuclear Power Station President, Board of County 5501 North State Route 2 Commissioners of Ottawa County Oak Harbor, Ohio 43449-9760 Port Clinton, Ohio 43452

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I Perry Nuclear Power Plant Unit Nos. I and 2 I

Centerior Service Company cc:

Mr. James D. Kloosterman Mr. Richard D. Brandt, Plant Manager Eegulatory Affairs Manager Cleveland Electric Illuminating Co.

'J1eveland Electric Illuminating Co.

Perry Nuclear Power Plant Perry Nuclear Plant P.O. Box 97, SB306 P.O. Box 97, E-210 Perry, Ohio 44081 Perry, Ohio 44081 Mr. James W. Harris, Director Jay E. Silberg, Esq.

Division of Power Generation Shaw, Pittman, Potts & Trowbridge Ohio Dept. of Industrial Relations 2300 N Street, N.W.

P.O. Box 825 Washington, D.C.

20037 Columbus, Ohio 43216 Ms. Mary E. O'Reilly The Honorable Lawrence Logan Centerior Energy Corporation Mayor, Village of Perry 300 Madison Avenue 4203 Harper Street Toledo, Ohio 43652 Perry, Ohio 44081 i

Resident Inspector's Office The Honorable Robert V. Orosz U.S. Nuclear Regulatory Commission Mayor, Village of North Perry l

Parmly at Center Road North Perry Village Hall Perry, Ohio 44081 4778 Lockwood Road North Perry Village, Ohio 44081 i

Regional Administrator U.S. NRC, Region III Attorney General 801 Warrenville Road Department of Attorney General Lisle, Illinois 60532-4531 30 East Broad Street Columbus, Ohio 43216 Lake County Prosecutor Lake County Administration Bldg.

Radiological Health Program 105 Main Street Ohio Department of Health Painesville, Ohio 44077 P. O. Box 118 Columbus, Ohio 43266-0118 OCRE Interim Representative Ohio Environmental Protection Agency 8275 Munson DERR--Compliance Unit Memtor, Ohio 44060 ATTN: Mr. Zack A. Clayton P.O. Box 1049 Terry J. Lodge, Esq.

Columbus, Ohio 43266-0149 618 N. Michigan Street, Suite 105 Toledo, Ohio 43624 Mr. Thomas Haas, Chairman Perry Township Board of. Trustees Ashtabula County Prosecutor 3750' Center Rd., Box 65 25 West Jefferson Street Perry, Ohio 44081 Jefferson, Ohio 44047 Mr. Donald C. Shelton Acting Vice President State of Ohio Nuclear - Perry Public Utilities Commission Centerior Service Company East Broad Street P.O. Box 97, A200 Columbus, Ohio 43266-0573 Perry, Ohio 44081 James R. Williams, Chief of Staff Ohio Emergency Management Agency 2855 West Dublin Granville Road Columbus, Ohio 43235-2206

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DISTRIBUTION:

DIRECTOR'S DECISION (00-96-15 ) UNDER 10 CFR 2.206 DATED october 17, 1996

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Docket: File (ED0 0000972) (w/ incoming)

PUBLIC (w/ incoming)

EDO # 0000972 E00 Reading PD3-3 Reading J. Taylor i

F. Miraglia/A. Thadani R. Zimmerman J. Roe i

E. Adensam (EGAl)

T. Martin P. Milano D. Foster-Curseen J. Hopkins L. Gundrum OPA OCA NRR Mailroom (EDO 0000972) (w/ incoming)

T. Harris r

J. Goldberg ASLBP Director, OCAA ACRS J. Caldwell, RIII V. Yanez C. Carter R. Architzel i

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