ML20151E322
| ML20151E322 | |
| Person / Time | |
|---|---|
| Site: | Hatch, Vogtle, Farley, 05000000 |
| Issue date: | 04/08/1988 |
| From: | Adensam E Office of Nuclear Reactor Regulation |
| To: | Long L SOUTHERN COMPANY SERVICES, INC. |
| References | |
| NUDOCS 8804150188 | |
| Download: ML20151E322 (19) | |
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April 8, 1988 Docket Nos. 50-348/364 50-321/366 50-424/425 Mr. Louis B. Long General Manager Southern Company Services P.O. Box 2625 Birmingham, Alabama 35202
Dear Mr. Long:
SUBJECT:
PROPOSAL TO FORM SOUTHERN NUCLEAR OPERATING COMPANY Re: Farley Nuclear Plant, Units 1 and 2 Hatch Nuclear Plant, Units 1 and 2 Vogtle Electric Generating Plant, Units 1 and 2 The NRC staff met with representatives of Alabama Power Company, Georgia Power Company, and Southern Company Services in Rockville, Maryland on March 18, 1988 to discuss the types and extent of technical information that the staff would require in order to properly evaluate a proposal to form an operating company to handle operation of the Farley, Hatch and Vogtle nuclear plants. A summary of that meeting has been issued separately.
We did not discuss any matters relating to antitrust or financial qualification issues that would arise from the proposal to fern an operating company.
However, such issues would have to be considered in any application to license a new company as operator of the three nuclear plants. Preliminary staff questions regarding such financial qualification and antitrust issues are identified in the enclosure. Should you have questions regarding these matters, we would be happy to arrange a meeting to discuss them with you.
Sincerely, Original signed by:
Elinor G. Adensam, Director Project Directorate 11-1 Division of Reactor Projects - I/II l
Enclosure:
As stated cc:See next page
- SEE PREVIOUS CONCURRENCES
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. s Docket Hos. 50-348/364 50-321/366 50-424/425 l Mr. R. P. Mcdonald
!- Senior Vice President
! Alabama Power Company P.O. Box 2641 Birmingham, Alabama 35291-0400
Dear Mr. Mcdonald:
SUBJECT:
PROPOSAL TO FORM SOUTHERN NUCLEAR OPERATI G COMPANY Re: Farley Nuclear Plant, Units 1 and 2 Hatch Nuclear Plant, Units 1 and 2 Vogtle Nuclear Plant, Units 1 and 2 The NRC staff met with representatives of labama Power Company, Georgia Power Company, and Southern Company Services i Rockville on March 18, 1988 to discuss the types and extent of technic- information that the staff would require in order to properly evaluate proposal to form an operating company to handle operation of the Farley, Ha ch and Vogtle nuclear plants. A sunnary of that meeting is being issued sepa ately.
We did not discuss any matters rel ting to antitrust or financial qualification issues that would arise from the roposal to form an operating company.
However, such issues would have o be considered in any application to license a new company as operator of th three nuclear plants. Preliminary staff questions regarding such finan ial qualification and antitrust issues are identified in the enclosure. hould you have questions regarding these matters, we would be happy t arrange a meeting to discuss them with you.
Sincerely, Elinor G. Adensam. Director Project Directorate 11-1 i Division of Reactor Projects - I/II
Enclosure:
As st ted ,
b Identical lette sent to the following: A Mr. George F. Head Senior Vice President Mr. Louis B. Long General Manager M%
Georgia Power Company Southern Company Services /d P.O. Box 4545 Atlanta, Georgia 30302 P.O. Box 2625 Birmingham, Al bama 35202 fU
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- 4 The question of whether an antitrust review would be needed for SONOPCO to be authorized to operate the plants with current operating licenses, is under staff review. The addition of SONOPCO to the construction permit and to the operating license application for Vogtle Unit 2 appears to warrant a changed circumstances review.
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A' ANTITRUST ISSUES 1
from this proposal, the Southern Nuclear Operating Company, Inc. (SONOPCO), as envisioned by the Southern Company, will assume operating responsibility for the licensed nuclear plants owned or co-owned by two of its operating <
subsidiaries, Alabama Power Company and Georgia Power Company. Reportedly, '
SON 0PC0 will not have any ownership interest in any of the units. Based upon ,
the available data, there are several areas of concern from a competitive and/or antitrust standpoint f hat have arisen as a result of this proposal.
A. NRR sees two broad antitrust areas of concern resulting from the creation of SONOPCO:
- 1. Adherence to the provisiens of Section 105c and the Commission's regulations during t1e amendment review, and
- 2. The maintenance of eeisting antitrust license conditions. ,
, Regarding the first issue, the NRC's rules and regulations (10 CFR 50.33a) and Section 105c of the Atomic Energy Act, as amended in 1970, specifically require antitrust review of applicants that are going to ,,-
g construct or operate a class 103 license. If ^,1CTC0 l5 A ; 'e ha 2N ii =:: (Frh,, lbtd ei,d ivpie), n represents a new ,icensee and /
3pr=~e +a *=q " 4 re - r t i tr n t re'ff =
Antitrust license conditions are attached to five of the six existing i
units in question. The other unit, Hatch 1, which was undergoing review 4
prior to enactment of the 1970 amendment, was a "grandfathered" unit for purposes of antitrust review. The licensees that have been obligated to specific marketing requirements by the antitrust license conditions must
! continue to abide by these requirements after the forniation of SONOPCO.
If SONOPC0 intends to be involved or becomes involved in the marketing or i
marketing decisions regarding power and energy produced from these five i units, this factor must be considered in any antitrust review. -If it is anticipated that SONOPC0 will not be involved in the marketing of power and energy from these units, but will just operate the units, then the l existing licensees, Alabama Power Company and Georgia Power Company, will
, remain licensees and continue to be obligated to existing antitrust i
license conditions. This separation of powers uast be explicitly addressed in writing in any application for amendment of the existing licenses.
i B. Ancillary problem areas may arise as a result of the formation of SONOPC0 l
as now envisioned.
- 1. There is an ongoing 2.206 antitrust compliance proceeding involving one of the Southern Company operating companies, Alabama Power Company. To the extent a litigated decision or settlement is reached ia this g oceeding, the newly formed SON 0PCO, to the extent apC coble, will te subject to the conditions of the settlement.
- _~
Docket Nos. 50-348/364 50-321/366 50-424/425 Mr. George F. Head Senior Vice President Georgia Power Company P.O.-Box 4545 Atlanta, Georgia 30302
Dear Mr. Head:
SUBJECT:
PROPOSAL TO FORM SOUTHERN NUCLEAR OPERATING .PANY Re: Farley Nuclear Plant, Units 1 and 2 Hatch Nuclear Plant, Units 1 and 2 Vogtle Nuclear Plant, Units 1 and 2 The NRC stafi' met with representatives of Alabama Power Company, Georgia Power Company, and Southern Company Services Rockville on March 18, 1988 to discuss the types and extent of techn' al information that the staff would require in order to properly evalua a proposal to form an operating company to handle operation of the Farley atch and Vogtle nuclear plants. A sumary of that meeting is being issued parately.
We did not discuss any matter relating to antitrust or financial qualification issues that would arise fro the proposal to form an operating company.
However, such issues would ave to be considered in any application to license a new company as operator of the three nuclear plants. Preliminary staff questions regarding suc financial qualification and antitrust issues are identified in the enci ure. Should you have questions regarding these matters, we would be ppy to arrange a meeting to discuss them with you.
Sincerely, Elinor G. Adensam, Director Project Directorate 11-1 Division of Reactor Projects - 1/11
Enclosure:
As stated [l4
~
Identical letters sent to the following:
i.n 1 ,, .
Mr. George F. Head Mr. Louis B. Long U -
- Senior Vice President Georgia Power Company P.O. Box 4545 General Manager Southern Company Services P.O. Box 2625
/[h Atlanta, Georgia 30302 Birmingham, Alabama 35202
- SEE PREVIOUS CONCURRENCES 0 t, O
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Docket Nos. 50-348/364 50-321/366 50-424/425 Mr. Louis B. Long General Manager Southern Company Services P.O. Box 2625 Birmingham, Alabama 35202
Dear Mr. Long:
/
SUBJECT:
PROPOSAL TO FORM SOUTHERN NUCLEAR OPERATING COMPANY Re: Farley Nuclear Plant, Units 1 and 2 /
Hatch Nuclear Plant, Units 1 ar)d 2 Vogtle Nuclear Plant, Units 1 and 2 The NRC staff met with representatives of Alabama Power Company, Georgia Power Company, and Southern Company S 18, 1988 to discussthetypesandextentof/er(icesinRockvilleonMarch echnical information that the staff would require in order to properly e, valuate a proposal to form an operating company to handle operation of the Failey, Hatch and Vogtle nuclear plants. A sunnary of that meeting is being is,s'ued separately.
/
We did not discuss any matters relating to antitrust or financial qualification issues that would arise/from the proposal to form an operating company.
However, such issues would have to be considered in any application to license a new company as operator of the three nuclear plants. Preliminary staff questions regarding/such financial qualification and antitrust issues are identified in the Should you have questions regarding these matters, we would,be enclosure.
happy to arrange a meeting to discuss them with you.
/
/ Sincerely,
/
/
/ Elinor G. Adensam. Director Project Directorate 11-1 Division of Reactor Projects - I/II
Enclosure:
As stated Identical letters sent to the following: /
Mr. George F. Head Mr. Louis B. Long Senior Vice President General Manager {p Georgia Power Company P.O. Box 4545 Southern Company Services P.O. Box 2625
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ff gghf Atlanta, Georgia 30302 Birmingham, Alabama 35202 pf ( (
- SEE PREVIOUS CONCURRENCES (
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i(t Docket Nos. 50-348/364 4
50-3?1/366
. 50-424/425 Mr.'R. P. Mcdonald Senior Vice President
. Alabama Power Company P.O. Box 2641 Biriningham, Alabama 35291-0400
Dear Mr. Mcdonald:
1
SUBJECT:
PROPOSALTOFORMSOUTHERNNUCl.EAROPERATINGCOMPAp Pe: Farley Nuclear Plant, Units 1 and ?
Hatch Nuclear Plant, Units 1 and 2 Vogtle Nucicar Plant, Units 1 and ?
/
The NRC staff met with representatives of Alabama jower Company, Georgia Power Company, and Southern Company Services in Rockvifie on March 18, 19P8 to discuss the types and extent of technical info d.ation that the staff would require in order to properly evaluate a propps'al to form an operating company to handle operation of the Farley, Hatch and Vogtle nuclear plants. A summary '
of that meeting is being issued separately (
L/ /
We did not discuss any matters relatirp/to ant rust or financial qualification issues that would arise froia the proposal to fo an operating company.
However, such issues would have to bp' considered in any application to license gwer...fregarding e g mpany as operator of the three nuclear and plants. Preliminary staff
/ such financial qualification ant rust issues are identified in the enclosure. Should you have questions egarding these matters, we would be happy to apange a meeting to discuss them with you.
[ Sincerely,
/
/ Elinor G. Adensam, Director Project Directorate II-?
/ Division of Reactor Projects - 1/11
Enclosure:
As stated g// s.
Identical letters sent to the following: t'm 45 PM4s P75r3 Mr. George F. Head Mr. Louis B. Long # ( J Peters.
Senior Vice President General Manager Georgia' Power Ccapany Southern Company Services 06 C-P.O. Box 4545 P.O. Box 2625 Atlanta, Georgia 30302 Birmingham, Alabama 35202 l 1
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- q NUCLEAR REGULATORY COMMISSION S4 - WASHING TO N, D. C. 20555
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Docket Nos. 50-348/364 50-321/366 50-424/425 Mr. R. P. Mcdonald Senior Vice President Alabama Power Company P.O. Box 2641 Birmingham, Alabama 35291-0400
Dear Mr. Mcdonald:
SUBJECT:
PROPOSAL TO FORM SOUTHERN NUCLEAR OPERATING COMPANY Re: Farley Nuclear Plant, Units 1 end 2 Hatch Nuclear Plant, Units 1 and 2 Vogtle Nuclear Plant, Units 1 and 2
, The NRC staff met with representatives of Alabama Power Company, Georgia Power Company, and Southern Company Services in Rockville on March 18, 1988 to discuss the types and extent of technical information that the statf would require in order to properly evaluate a proposal to form an operating company to handle operation of the Farley, Hatch and Vogtle nuclear plants. A summary ,
of that meeting is being issued separately.
We did not discuss any matters relating to anti st or financial qualification issues that would arise from the proposal to form an operating company.
However, such issues would have to be considered in any application to license
, a new company as operator of the three nuclear plants. Prpliminary staff Gi.udv4eeeeeces regarding such financial qualification and antiMrust issue:, are .
I identified in the enclosure. . Should you have questions regarding these matters, we would be happy to arrange a meeting to discuss them with you.
Sincerely, l
Elinor G. Adensam, Director Project Directorate 11-2 Division of Reactor Projects - I/II l
Enclosure:
As stated
/ cc:
- ersen
, ambe Identical letters sent to the following:
Mr. George F. Head Mr. Louis B. Long Senior Vice President General 'Hanager Georgia Power Corpany Southern Company Services P.O. Box 4545 P.O. Box 2625 Atlanta, Georgia 30302 Birmingham, Alabama 35?02
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Docket Nos. Sn-348/364 W 50-321/366 50-424/425 Mr. George F. Head Senior Vice President Georgia Power Company P.O. Box 4545 Atlanta, Georgia 30302
Dear Mr. Head:
SUBJECT:
PROPOSAL TO FORM SOUTHERN NUCLEAR OPERATING COMP NY Re: Farley Nuclear Plant Units 1 and 2 ,
Hatch Nuclear Plant Units _1 and 2 Vogtle Nuclear Plant, Units 1 and 2 The NRC staff met with representatives of Alabima P)wer Company, Georgia Power-9 Company, and Southern Company Services in Rockville on Harch 18, 1988 to 4 discuss the types and extent of technical information that the staff would require in order to properly evaluate a proposal /to form an operating company to handle operation of the Farley, Hatch and Vogtle nuclear plants. A sumary of that meeting is being issued separately. /'
V Wedidnotdiscussanymattersrelatingtoarthrustorfinancialcualification issues that would arise from the proposal tpp fc:1n an operating company.
dered in any application to license However, ne mpany such asissues operatorwould of thehave three to nugbe cor.s) lear plants, greliminary staff v regarding such financial qualification and antiptrust issues are identified in the enclosure. Should yod have questions regarding these matters, we would be happy to arrange meeting to discuss them with you.
- Sincerely,
/
/
Elinor G. Adensam. Director
/ Project Directorate II-?
Division of Reactor Projects - I/11
/
/
Enclosure:
/ As stated j Wr f ,e
- W ,/
y . Lambe Identical letters sent to the fo11 ewing:
/
Mr.R.P.McDonalj Mr. Louis B. Long Senior Vice President General Managee Alabama Power C6mpany Southern Cerpany Services P.O. P641 P.O. Box 26?5 Rirmingham, Alabama 35?91-0400 Biyingham, Alabama 3520?
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Docket Nos. 50-348/364 50-321/366 f l
50-424/425 /
l Mr. Louis B. Long ,
~ General Manager / !
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. Southern Company Services '
/ l P.O. Box 2625 :
Birmingham, Alabama 35202
Dear Mr. Long:
/ !
/ ,
SUBJECT:
PROPOSAL TO FORM SOUTHERN NUCLEAR OPERATING COMPANY l
/
Re: Farley Nuclear Plant, Units 1 and 2 / 1 Match Nuclear Plant, Units 1 and 2 / l Vogtle Nuclear Plant, Units 1 and 2 ,/ i j'
The NRC staff met with representatives of Alabama / ower P Company, Georgia Power I Company, and Southern Company Services in Rockville on March 18, 1988 to I discuss the types and extent of technical infoyination that the staff would require in order to properly evaluate a proposal to form an operating company
~
to handle operation of the Farley, Hatch and'Vogtle nuclear plants. A summary of that meeting is being issued separately /
7 V Wedidnotdiscussanymattersrelatingt$antihrustorfinancialqualification I issues that would arise from the proposal to form an operating company. l However, such issues would have to be donsidered in any application to license j a y,pompany as operator of the thre5 nuclear plants, eliminary staff !
regarding such financial qualification and ant ytrust issues are !
identified in the enclosure. Shou}d you have questions regard *rq these matters, we would be happy to arrange a meeting to discuss them with you, i
/
/ Sincerely,
/
/
/ Elinor G. Adensam. Director
/ Project Directorate 11-2 ;
,' Division of Reactor Projects - I/II I
/
Enclosure:
I As stated ,
Identical lettdrs sent to the following:
/
Mr. R. P. PS D on61d Mr. George F. Head Senior Vice President Senior Vice President Alabama Power Company Georgia Power Company ,
P.O. Box /2641 P.O. Box 4545 )
Birmingham, Alabama 35291-0400 Atlanta, Georgia 3030? i PM:PLII'h/kPM:PDII-3 kF I-1 D:PDII-I EAdensan LCrn;ker:pw >NHopkins cENoves 1
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't Joseph M. Farley Nuclear Plant ec:
Mr. Bill M. Guthrie D. Biard MacGuineas Esquire Executive Vice President Volpe, Boskey and Lyons Alabama Power Company 918 16th Street, N.W.
Post Office Box 2641 Washington, PC 20006 Birmingham, Alabama 35291-0400 Charles R. Lowman Mr. R. P. Mcdonald, Alabama Electric Corporation Senior Vice President Post Office Box 550 Alabama Power Company Andalusia, Alabama 36420 P.O. Box 2641 Birmingham, Alabama 3S291-0400 Regional Administrator, Region II Chairman U.S. Nuclear Regulatory Conmission Houston County Commission 101 Marietta Street, Suite 2900 Dothan, Alabama 36301 Atlanta, Georgia 30303 Ernest L. Blake, Jr., Esquire Claude Earl Fox, M.D.
Shaw, Pittman, Potts and Trowbridge State Health Officer 2300 N Street, N.W. State Department of Public Health Washington, D.C. 20037 State Office Building liontgomery, Alabama 36130 Robert A. Buettner, Esquire Balch, Bingham, Baker, Hawthorne, Mr. J. D. Woodard Williams and Ward General Manager - Nuclear Plant Post Office Box 306 Post Office Box 470 Birmingham, Alabama 35201 Ashford, Alabama 36312 Resident Inspector U.S. Nuclear Regulatory Commission Post Office Box 24 - Route 2 Columbia, Alabama 36319 r
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Edwin I. Hatch Nuclear Plant, Georgia Power Company Units Nos. 1 and 2 cc:
G. F. Trowbridge, Esq. George F. Head Shaw, Pittman, Potts and Trowbridge Senior Vice President 2300 N Street, N. W. Georgia Power Company Washington, D.C. 20037 P.O. Bcx 4545 Atlanta, Georgia 30302 Mr. L. T. Gucwa Engineering Departraent Georgia Power Company P. 0. Box 4545 Atlanta, Georgia 30302 Nuclear Safety and Corrpliance Manager Edwin I. Hatch Nuclear Plant Georgia Power Company P. O. Box 442 Baxley, Georgia 31513 Mr. Louis B. Long Southern Company Services, Inc.
P. O. Box 2625 Birmingham, Alabama 35202 Resident Inspector U.S. iluclear Regulatory Comission Route 1, Box 725 Baxley, Georgia 31513 Regional Administrator, Region 11 U.S. fluclear Regulatory Commission 101 Marietta Street, Suite 2900 Atlanta, Georiga 30323 l
lir. Charles H. Badger l
Office of Planning and Budget l Roon 610 270 Washington Street, S.W.
l
. Atlanta, Georgia 30334 l
Mr. J. Leonard Ledbetter, Comissioner Department of Natural Resources 270 Washington Street, N.W.
Atlanta, Georgia 30334 Chairman Appling County Comissioners l County Courthouse j
Baxley, Georgia 31513 l
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u Georgia Power Company Vogtle Electric Generating Plant.
~cc:
Mr. L. T. Gucwa Resident Inspector Manager of Safety and Licensing Nuclear Regulatory Comission Georgia Power Company P. O. Box 572 P.O. Box 4545. Waynesboro, Georgia 30830 Atlanta, Georgia 30302 Mr. Ruble A. Thomas Deppish Kirkland, III, Counsel Executive Consultant. Office of the Consumers' Utility Southern Company Services, Inc. Council P. O. Box 2625 Suite 225 Birmingham, Alabama 35202 32 Peachtree Street, N.E.
Atlanta, Georgia 30302 James E. Joiner Mr. Paul D. Rice Troutman, Sanders, Lockerman, Vice President & Project Director & Ashmore Georgia Power Company 1400 Candler Building Post Office Box 282 127 Peachtree Street, N.E.
Waynesboro, Georgia 30830 Atlanta, Georgia 30303 Danny Feig Mr. J. A. Bailey 1130 Alta Avenue Project Licensing Manger Atlanta, Georgia 30307 Southern Company Services, Inc.
P.O. Box 2625 Carol Stangler Birmingham, Alabama 35202 Georgians Against Nuclear Energy 425 Euclid Terrace Ernest L. Blake, Jr. Atlanta, Georgia 30307 Bruce W. Churchill, Esq.
Shaw, Pittman, Potts and Trowbridge George F. Head 2300 N Street, N. W. Senior Vice President Washington, D. C. 20037 Georgia Power Company P.O. Box 4545 l Mr. G. Bockhold, Jr. Atlanta, Georgia 30302 i General Manager Nuclear Operations Georgia Power Company P. O. Box 1600 Waynesboro, Georgia 30830 Regional Administrator, Region II U.S. Nuclear Regulatory Comission 101 Marietta Street, N.W., Suite 2900 Atlanta, Georgia 30323 l
l
e.
FINANCIAL QUALIFICATIONS REQUIREMENTS UNDER 10 CFR PART 50 The following areas of financial qualification review are required by the regulations based on the limited information provided by the Southern Company so far. When more details of the licensees' plan are known, the requirements may be adjusted based on the specific provisions of the plan.
10 CFR 50.2 Presumably licensees would like SON 0PC0 treated as an "electric utility" in tha t will be a generation subsidiary, if it recovers the cost of this electricity, at least indirectly, through rates established for GPC and APC by State PUCs and by FERC.
Licensees should provide necessary information to demonstrate that SON 0PC0 qualifies to be considered an "electric utility" a3 that term is d:. fined by 10 CFR 50.2.
10 CFR 50.33(f) If SON 0PC0 is an "electric utility," then the full financial qualifications review under 50.33(f) would not be required for the OL amendments, except that the requirements for newly-formed entities listed in 50.33(f)(3) apply (see below). A firancial qualf fications review will be required for the CP amendment on Vogtle 2 (50.33(f)(1); and Appendix C to Part 50). (Seebelow.)
Requirements for Newly-Formed Entities Such As SONOPC0 (50.33(f)(3))
- 1. Licensees should describe legal and financial relationships among SON 0PC0, GPC and APC.
l l
l 2. Licensees should demonstrate that GPC and APC ratepayer revenues will l
continue to be the source of funds for all nuclear plant operating and maintenance costs and eventual decommissioning costs,
- a. Staff will look for a demonstration that SONOPC0 formation will in l
no way change GPC's and APC's ccmmitment and obligation to provide l
their ownership share of all nuclear plant costs regardless of the l
l 1
l
e.
u level of the costs of any increases in costs. (SON 0PC0 presumably has no other source to cover such costs other than GPC and APC, and the other joint owners of Vogtle and Hatch - i.e., Oglethorpe, MEAG and Dalton.) (APC is the sole owner of Farley.)
- b. Licensees should describe the flow of funds from APC and GPC (and from the other joint owners of Vogtle and Hatch) to SON 0PCO. Provide copies of the operating agreement among SONOPC0 and the owners and reference the provisions regarding payment of nuclear plant costs to SON 0PC0.
Requirements for the CP Amendment (50.33(f)(1); and Appendix C, Part 50)
- 1. Licensees should demonstrate that SON 0PC0 has reasonable assurance of obtaining the funds to complete construction of Vogtle 2, and to cover fuel cycle costs for the first cycle.
- 2. Provide estimates of the remaining cost to complete c'onstruction and cost of the first fuel cycle.
- 3. Provide a detailed statement of the joint owners' sources of funds for completing Vogtle 2 and for the first fuel cycle.
- 4. Provide copies of the agreement between SON 0PC0 and the joint owners tnat covers payment of the above costs to SON 0PC0. Reference pertinent provisions.
6 ANTITRUST ISSUES l From this proposal, the Southern Nuclear Operating Company, Inc. (SON 0PC0), as envisioned by the Southern Company, will assume operating responsibility for the licensed nuclear plants owned or co-owned by two of its operating subsidiaries, Alabama Power Company and Georgia Power Company. Reportedly, SON 0PC0 will not have any ownership interest in any of the units. Based upon the available data, there are several areas of concern from a competitive and/or antitrust standpoint that have arisen as a result of this proposal.
A. NRR sees two broad antitrust areas of concern resulting from the creation of SON 0PC0:
- 1. Adherence to the provisions of Section 105c and the Commission's regulations during the amendment review, and
- 2. The maintenance of existing antitrust license conditions.
Regarding the first issue, the NRC's rules and regulations (10 CFR 50.33a) and Section 105c of the Atomic Energy Act, as amended in 1970, specifically req .re antitrust review of applicants that are going to construct or operate a class 103 license. The question of whether an antitrust review would be needed for SON 0PC0 to be authorized to operate the plants with current operating licenses, is under staff review. The addition of SON 0PC0 to the construction permit and to the operating license application for Vogtle Unit 2 appears to warrant a changed circumstances review.
Antitrust license conditions are attached to five of the six existing units in question. The other unit, Hatch 1, which was undergoing review prior to enactment of the 1970 amendment, was a "grandfathered" unit for purposes of antitrust review. The licensees that have been obligated to specific marketing requirements by the antitrust licence conditions must continue to abide by these requirements after the formation of SON 0PCO.
If SONOPC0 intends to be involved or becomes involved in the marketing or marketing decisions regarding power and energy produced from these five units, this factor must be considered in any antitrust review. If it is anticipated that SONOPC0 will not be involved in the marketing of power and energy from these units, but will just operate the units, then the existing licensees, Alabama Power Company and Georgia Power Company, will remain licensees and continue to be obligated to existing antitrust license conditions. This separation of powers must be explicitly addressed in writing in any application for amendment of the existing licenses.
B. Ancillary problem areas may arise as a result of the formation of SON 0PC0 as now envisioned.
- 1. There is an ongoing 2.206 antitrust compliance proceeding involving one of the Southern Company operating companies, Alabama Power Company. To the extent a litigaued decision or settlement is reached in this proceeding, the newly formed SON 0PC0, to the extent applicable, will be subject to the conditions of the settlement.
1
1
- 2. Georgia Power Company may be required to undergo another operating license antitrust refiew of its Plant Vogtle. NRC staff procedures now require multi-unit licensees, e.g., Vogtle 1 and 2, to undergo separate operating license reviews when each unit is licensed more than eighteen months apart. The obvious rationale for this policy is that the licensee may have changed its marketing activities since the antitrust review of the initial unit and completion of the second unit eighteen months later. The Plant Vogtle 1 antitrust operating license review was completed on November 21, 1986 and the OL was issued on January 16, 1987. If the second Vogtle unit does not receive its operating license before July of 1988, a separate antitrust operating license review for Unit 2 could be conducted.
(NUREG-0970, Section 3.1, p. 9). This is an issue of concern notwithstanding the creation of SON 0PC0.
C. The Companies' Submissions To Date The limited information provided to date by representatives of the Southern Company system, indicates that a newly created SON 0PC0 will not have any marketing control or responsibilities over distribution of the power and energy from the three nuclear plants in question. If this is the structure the Southern Company intends to pursue, it would allay many of the staff's concerns regarding any potential shifts in market power in the licensees' service areas as a result of the creation of SON 0PCO.
i
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DISTRIEUTION:..
iDocketFile...! .
'llRC' PDR '
Local PDR (3)
PDII-3 R/F PDII-1 R/F S. Yarga G. Lainas E. Adensam M. Rood L. Crocker i
J. Hopkins l B. Vogler, OGC E. Jordan J. Partlow J. Petersen, PTSB W. Lambe ACRS(10}PTSB Hatch R/F l Vogtle R/F i E. Reeves P. Anderson l
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