ML20195E542

Suppl Application for Amend to License NPF-42,transferring Control of Kg&E & Kansas Power & Light Possessory Ownership Interests to Westar Energy,Inc

ML20195E542
Person / Time
Site:	Wolf Creek
Issue date:	11/10/1998
From:	Maynard O WOLF CREEK NUCLEAR OPERATING CORP.
To:	NRC OFFICE OF INFORMATION RESOURCES MANAGEMENT (IRM)
References
WM-98-0120, WM-98-120, NUDOCS 9811190026
Download: ML20195E542 (20)

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W$LF CREEK NUCLEAR OPERATING CORPORATION

.. Otto L Maynard President and Chief Executive Offmer NOV 101998 WM 98-0120 U. S. Nuclear Regulatory Commission

. ATTN:

Document Control Desk Mail Station: Pl-137 Washington, D.

C.

20555

Reference:

Letter WM 98-0110, dated 10/27/98, from O.

L.

Maynard, WCNOC, to USNRC.

Subject:

Docket No.

50-482: Supplement to Request. for the Transfer and Amendment of the Wolf Creek Generating - Station Facility Operating License NPF-42 To Reflect Transfer of Ownership Gentlemen:

The above Reference submitted an application for transfer of control of Kansas

, Gas and ' Electric Company's (KGE) and Kansas City Power and Light Company's

-. ( KCPL) possessory ownership interestr in Facility Operating License No. NPF-42 for the. Wolf Creek Generating Station (WCGS), Unit 1, to Westar Energy, Inc., and for.an amendment to the WCGS License to reflect this transfer of ownership.

As part of this change, Facility Operating License NPF-42 Appendix C,

Antitrust Conditions for KGE and KCPL, also requires minor revisions to reflect the change incthe company names from KGE and KCPL to Westar Energy, Inc.

The markup of Appendix C was intended to be included with the markup of the license in Attachment II'to the Reference, but was inadvertently omitted.

The Enclosure to this letter provides the markup of Appendix C to Operating License, NPF-42, to be

~ included with the requested change: to the operating license submitted by the Reference.

The Attachment identifies the commitments made by Wolf Creek Nuclear Operating Corporation in this submittal.,

In accordance with 10 C.F.R.

S 50.91, this submittal is being provided to the designated Kansas State Official.

LIf you have any questions concerning this matter, or require additional information, please contact Rick Terrill, Vice President of Western Resources,

'at- (785) 575-6322, or Jay Silberg, of Shaw, Pittman, Potts & Trowbridge, at (202) 663-8063.

• 1. Y *"1Y Y "'8' 9811190026 981110 PDR ADOCK 05000482

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Otto L. Mayna I'

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V. L-Cooper (KDHE), w/a, w/e W. D. Johnson (NRC), w/a, w/e E. W. Merschoff (NRC), w/a, w/e B

3. Smalldridge (NRC), w/a, w/e K. N. Thomas (NRC), w/a, w/e P.O. Box 411/ Burlington, KS 66839 / Phone: (316) 364-8831 An Equal Opportunity Ernployer M/F/HC/ VET Il

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STATE OF KANSAS

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ss COUNTY OF COFFEY -

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Otto L. Maynard, of-^1 awful age, being first duly sworn upon oath says that he is President. and Chief Executive Officer of Wolf' Creek Nuclear Operating Corporation; that he has read the ~ foregoing document and knows the content thereof; that he has executed that same for and on behalf of said Corporation with. full power and authority to do so; and that the facts therein stated are true and correct to-the best of his knowledge, information and belief.

By M

LINDA DELONG-OHMIE '

OttW s. Mafnard

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Notary Pubhc. State of Kansas President and My Appt Expires August 31.2002 Chief Executive Officer 0

SUBSCRIBED and sworn to before me this 10 day of Nevernk,1998.

S-n N'ot!ary Publ'ici 2Q Expiration Date OI;2001 i

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7 Attachment to WM 98-0120 fage1of2 ATTACHMENT i

LIST OF COMMITMENTS l

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1 Attachment to WM 98-0120 Page 2 of 2 LIST OF COMMITHENTS The following table identifies 5ose actions committed to by Wolf Creek Nuclear

• Operating Corporation (WCh)C) in this document.

Any other statements in this submittal are provided for information purposes and are not considered to be commitments.

Please direct questions regarding these commitments to Mr.

Michael J.

Angus, Manager Licensing and Corrective Action at Wolf Creek Generating Station, (316) 364-4077.

j COtedITMENT Due Date/ Event None N/A I

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ENCLOSURE I

i i-MARK-UP OF ATTACHMENT C, ANTITRUST CONDITIONS, TO THE I

OPERATING LICENSE NO. NPF-42 FOR THE WOLF CREEK GENERATING STATION TO REFLECT TRANSFER OF OWNERSHIP 1

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I Enclosure to WM 98-0120 Summary of Proposed Changes to Appendix C to Facility Operating License NPF-42 License Section Change Description Appendix C, Page Replace Kansas Gas and Electric Company with Westar Energy, 1,

Title Inc.

Appendix C, Page Replace Kansas Gas and Electric Company with Westar Energy, 1,

1.(a)

Inc.

Appendix C, Page Replace Kansas City Power & Light Company with Westar 10, Title Energy, Inc.

Appendix C, Page Replace Kansas City Power & Light Company with Westar 10, 1.(a)

Energy, Inc.

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WOLF CREEK, UNIT 1

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As used herein:

(a)

" Licensee" means X;..;.

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(b)

" Licensee's Servico Area" means those counties loested in whole or in part within the area certificated'to Licensee by the appropriate state regulatory commission.

(c)

" Bulk Power

• means the electric power, and any attendant energy, supplied or made available at transmis.

sion or subtransmission voltage by one entity to another.

(d)

"Emdrgency support" is capacity and energy as available from one system, and as needed by another system to replace capacity and energy made unavailable due to forced outages of generating equipment or trans-mission facilities.

(a)

" Maintenance supporta is capacity and energy pisnned by one system to be made available to another sys-tem to replace capacity and energy.made unavailable due to maintenance of generating equipment or transmission facil-ities.

(f)

" Entity" means a financially responsible pri-vote or public corporation, governmental agency or author-ity, municipality, cooperative, or lawful association of any of the foregoing, owning, contractually controlling, or operating, or in good faith proposing to own, contrac-tually control, or operate, facilities for the generation and transmission of electricity for bulk power supply which meets each of the following criteria: (1) its exist-ing or proposed facilities are technically feasible of interconnection bith those of Licenseer (2) with the ex-caption of municipaliti'es, cooperatives, government agen-cies or authorities it is, or upon commencement of opera-tions will be, a public utility subject to regulation with respect to rates and services under the laws of Kansas.

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(g)

" Participating entity" is an " entity" partici-i pating in the ownership of or power output from Wolf Creek j

Unit 1.

f (h)

"XEc" refers to Kansas Electric Cooperatives, j

Inc. or Kansas Electric Power Cooperative, Inc. insofar as l

it shall become a successor in interest.

I (i)

"KEC members in Licensee's service Area" refers to the following KEC member rural electric co-3 operatives:

the Butler Rural Electric Cooperative As-i sociation, Inc.

the Caney Valley Electric Cooperative i

Association, Inc.: Cof fey County Rural Electric Coopera-i tive Association, Inc.; the United Electric Cooperative, i

Inc.; the Radiant Electric Cooperative, Inc.; the Sedgwick

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county Electric Cooperative Association, Inc.; the Sekan j

Electric Cooperative Association, Inc.: and Sumner-Cowley j

Electrie Cooperative, Inc.

4 (j)

The *uotal demand requirements

• or the " power I

I requirements" of the KEC members in Licensee's Service i

Area refers to the sua for all such KEC members of the.

l KGrE delivery point contributions to the maximum monthly j

sum of the integrated 15 minute non-coincidental demands l

for each member.

f 2.

(a)

Licensee shall offer an opportunity to parti-cipate in Wolf Creek Nucisar Unit Number 1 and any other 7

nuclear generating unit (s) which it may construct, own (ad operate severally or jointly, during the term of the instant license or an extension or renewal thereof, to any entity (ies) in Licensee's servios Area.

Such par-ticipation shall be in reasonable amounts, by an ownership interest, or at the option of the antity, by a contractual right to purchase a portion of the output of such units, or on any other mutually agreeable basis.

The transmis-sion provisions herein relate to participation in Wolf Creek Nucisar Unit No. 1 and not to any transmission which may be associated with participation in other nuclear gen-erating unit (s) gwhich Licensee may construct, own and operate severally or jointly.

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(b)

Licensee shall make available to KEC an divided 17 percent ownership participation in the Wolfn-Creek Nuclear Unit Number 1 upon mutually agreeable terms i

and conditions, which ownership participation KEC shall acquire as of the date of issuance of the Nuclear Regula-tory Commission's construction permit for the Wolf Creek Nuclear Unit Number 1 or as soon thereafter as KEC can secure the necessary regulatory and financing approvals pursuant to the terms of the May 20, 1976 settlement agreement between Licensee and KEC.

The power which KEC obtains from the Wolf Creek Nuclear Unit Number 1 shall be utilized first to satisfy the power requirements of the KEC members in Licensee's Service Area to the maximum extent reasonable and efficient to do as and to the extent consistent with KEC's other power supply ob-ligations to KEC's members in Xansas.

During the calen-dar year in which the Wolf Creek Nuclear Unit Number 1 com-mences commerc441 operation and.in each succeeding year of operation of tRe Wolf Creek Nuclear Unit Number 1 no less than 42 percen't of the total demand requirements of the KZC members in Licensee's Service Area shall be satisfied by KEC by use of its available power from Wolf Creek Nu.

clear Unit Number 1.

KEC's power from Wolf Creek Unit Number 1 shall be transmitted by Licensee for EEC to such delivery and interconnection points on Licensee's system and in such amounts as specified by KEC, pursuant to para-graph 5 (a) below.

3.

Licenses shall interconnect with any participating entity in Licensen's service Area which requests such in-terconnection and provide for the followings (a) maintaining and coordinating of reserves, in-ciuding, where applicable, the purchase and sale of re-serve espacity and energy, (b) emergency support, (c) maiptenance support, (d) delivery of " unit power" or other participa-tion power out of Wolf Creek Unit 1 from the Lisensee, and

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(c) transmission services for the above and as described subsequently, 8

4.

(a)

Licenses and the participating entities in Licensee's Service Area having a reserve coordination i

arrangement provided for in Paragraph 3, above, shall i

from time to time jointly establish the minimum reserve requirements to be installed and/or provided under con-tractual arrangements as necessary to maintain in total a reserve margin sufficient to provide adequate reliabil-i ity of power supply to the interconnected systems of the l-parties.

To have reserve coordination rights, other than i

reserves for Wolf Creek, with the Licensee, a participat-ing entity must own or have contractual' rights to generat-ing rapacity other than of Wolf Creek Nuclear Unit Number i

1.

Unless otherwise agreed upon, the minimum reserve re-quirement shall be calculated as a percentage of the projectedannualpagkload,adjustedforpurchasesand sales of firm power, including partial requirements firm i

power.

The parties to such a reserve soordisating arrange-ment shall provide such amounts of operating (ready and i

spinning) reserve capacity as may be adequate to avoid the imposition of unreasonable demands on the others in meet-i ing the normal contingencies of operating their systems.,

However, in no circumstances shall any party's spinning or operating reserve requirement exceed the minimum re-serve requirement as provided above.

parties to a reserve coordination agre(Moreover, if the ement cannot agree i

upon a minimum reserve requirement, the participating i

entities' minianum reserve requirement shall be neither l

1ess than nor greater than Licensee's minimum system re-L serve requirement.)

(b)

F.mergency and/or scheduled maintenance bulk power servies shall be provided by each party to the ex-tant required by the system in need, and be furnished to the fullest extent avattable from the supplying system.

Licensee and each party (les) within Licensee's service Area shall' provide y the other emergency and/or sche-duled maintenance bulk power servies if and when avail-able from its own generation (and from generation of Jv-1 g

others with whom Licensee is interconnected to the extent it can do so without impairing service to its customers.

including other egoctric systems to whom it has firm cam-mitments ).

5.

(a)

Licensee shall transmit the power from a parti-cipating entity's share of Wolf Creek Nuclear Unit Number i to the participating entity, or for the account of such participating entity, to delivery or interconnection points on Licensee's system and in amounts as specified by the participating entity, such deliveries shall be reasonable as to the number of points, system adequacy and frequency of schedule changes.

(b)

Licenses shall transmit power from an entity (ies) outside Licensee's service Area to a participating entity within Licensee's service Ares in an amount at least equal to the share of Wolf Creek Nuclear Unit Number 1 of a par-ticipating entity within Licensee's Service Area when the output of this unit is reduced or unavailable because of maintenance or for other reasons.

(c)

If capacity and energy from a participating entity's(ins') porpion of Wolf Creek Nuclear Unit Number 1 are delivered to other entities, Licensee shall also provide transmission for a later scheduled return of such energy within the same calendar year, in an equal amount of mwhrs, from these other entities to the delivery point of the participating entity within Licensee's Service Area, provided that such transmission arrangements can be reason-ably ~ accommodated from a functional and technical stand-point. ( For example, any Wolf Creek power transmitted (per-missible within the terna of these conditions) out of Licensee's system shall create in participating entity (ies) the right to call upon Lisensee, and the corresponding obligation of Licensee, to transmit equal power back into Licensee's system for account of said participating entity (iss), all within the same calendar year.

At any point in time the transfer of power back in (for account of participating entity (iss)) could eacur simultaneously with full delivery of that participating entity's(Las')

power from Wolf Creek Nuclear Unit Number 1.

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(a)

Licensee shall sell power at its filed and j

effective rates (for total or partial requirements) i.

to any entity in Licensee's Service Area now engaging or pro-i posing to engage in.the wholesale or retail sale of elec-

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(b)

Insofar as the power requirements of the KEC members in Licensee's service Area are satisfied by power i

j which is not Licensee's power and which has been transmit-tad by Licenses for XEC pursuant to Paragraphs 2 (b) and 7 of these license conditions, Licensee's sale of full or partial requirements to'KEC or to its members in Licensee's Service Area pursuant to Paragraph 6(a) above shall be correspondingly reduced.

7.

In addition to the transmission offered by Licensee in Paragraphs 2 (b), 3, 5, and 6 above, Licensee shall, consistent with Paragraph 8 below and with the terms of the May 20, 1976 settlement agreement between Licensee and KEC, transmit,for KEC the following powers (a) commencing July 1, 1980, and until the Wolf Creek Nuclear Unit Number 1 commences commercial operation or is finally abandoned, (1) 30 megawatts of preference customer power, tg the extent available, which KEC obtains from Southwestern Power Administration, provided that such e

preference power is delivered to Licensee's Neoshe substa-tion naar Parsons, Kansas (ii) said 30 megawatts may be increased to 90 megawatts of Southwestern Power Adminis-tration preference customer power once the Harry S.

Truman Dam commences consnercial operation, but not beforms (b)

When Wolf Creek Muclear Unit Number 1 commences commercial operation, and thereafter in each succeeding calendar year until the project ceases operation or until calendar year 2021, whichever is later, a total of 90 mega-watts of prei.:.rance customer power (inclusive of the power described in subparagraph 7(a) above) which REC obtains from the Southwestern Power Administration or from a source or sources which as a matter of law are administratively foreclosed to Licensee by virtue of a statutory or regula-tory preference.

The power described in subparagraphs 7(a)

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and (b) shall be transmitted by Licenses for KEC on a con-i tractual buy-sell arrangement unless by entering into such arrangement KIC would lose its entitlement to such prefer-enee powert (c)

When Wolf Creek Nuclear Unit Number 1 commences j

commercial operation and thereafter so long as this Unit continues operation, or until calendar year 2021, which-j ever is later, (i) any additional quantities of power which t

j XEC generates fremga source other than Wolf Creek Nuclear j

bnit Number 1, or which KEC obtains from any power source or sources which as a matter of law are not administrative 1y formelosed to Licensee by virtue of a statutory or reguia-tory preference, provided that such power is tran'amitted by Licenses to KEC members in Licensee's service Area for the use of such members and (ii) any qther quantities of power which KZC generates from a source other than Wolf Creek Unit Number 1, or which.XEC obtains from any power source or sources which as a matter of law are not kdmin-istratively foreclosed to Licensee by virtue of a statu-tory or regulatory preference, to the same extent that Licensee would reasonably agree to transmit such power for any other electric utility.

All the power described in this subparagraph shall be transmitted by Licensee for KEC upon reasonable and timely request for such transmission only on the basis of a contractual buy-sell arrangement similar in duration to Licensee's then existing comparable buy-sell contractual arrangements with other electric util-ities.

pursuant to any such buy-sell contract, Licensee shall purchase the designated power as delivered by the seller or any othertentity at delivery or interconnection points on Licensee's system and shall resell the same to KEC at the Licensee's purchase price plus an amount which constitutes Licensee's transmission cost including a rea-sonable return on the investment allosable solely to the transmission of such pcmers (d)

All of the pows. transmitted by Licensee for KEC pursuant to the provisions of subparagraph 7 (a) (1) above, shall be used to satisfy the power requirements of the KEC members in Licensee's service Arsa.

When the Harry S. Truman Dam commences commercial operation and in

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no less than 40 megawatts of the power transmit

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censee for KEC pursuant to the provisions of subparagraph i

7 (b) above, if available, shall be used to satisfy the i

power requirements of the KEC members in Licensee's ser-vice Areat and j

(e)

Insofar as the power of KEC from Wolf Creek Nuclear Unit Number 1 and the power transmitted by Lican-see for KEC in the manner provided in subparagraphs 2 (b) and 7 (a) through (d) is not utilised in Licensaa's j

service Area, as reasonably and f airly determined by KEC i

in accordance with the foregoing provisions, Licensee i

shall, upon reasonable and timely request for such service, i

transmit such excess power for KEC from and to such inter-

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connection points gn Licensee's system and in such amounts in subparagraphs 2 (b)as specified by KEC on terms and conditions as provide and 7(a) through (c) above.

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The transmission described in these license condi-j tions shall be made available only upon terns which j

fully compensate Licensen for its costs, including any i

transmission power losses and a reasonable return on in-j vestment allocable solely to such transmission and re-flected in Licensee's schedules or tariffs filed with the Xansas Corporation Commission or the Federal power Commis-sion.

The transmission described in Paragraphs 2(b) 7 above shall be available to KEC for the transmission of and requested amounts of power in the manner spec 4fied in Paragraphs 2 (b) and 7(a) through (e) above, provided that XEC gives Licensee reasonable advance notice of the transmission required and, provided further, that such transmission arrangements can be reasonably accommo-dated from a functional and technical standpoint and to the extent that Licensee can do so without impairing ser-vice to its customers including other electric systems to which it has firm eqamitments.

Nothing herein imposes a requirement on Licenses to become a common carrier.

9.

Licenses shall include in $ts planning and construc-tion of additional transmission facilities sufficient trans-mission capacity to accommodate the transmission described in Paragraphs 2 (b). 7 (b), and 7(c)(i) above, provided that

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i XEC gives Licensee sufficient advance notice as may be nee'.

essary to accomunodade such requirements from a functional 1

i and technical standpoint.

Licensee and KZC shall consult with respect to the planning and construction of additional transmission facilities.

i 10.

The foregoing conditions shall be implemented in a i

manner not inconsistent with the provisions of, and es pro-vided under, the rederal power Act and all other applicable rederal and state laws and all rates, charges and practices in connection therewith are to bs arbject to the approval i

of regulatory agencias having jurialiction 4ver them.

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10-APPD' DIX C g WOLF CAZEK, UNIT 1

/M7 D O7 CONDITIONS FOR i

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As used herein (a)

" Licenses" means

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(b)

" Licensee's service Area

• means those portions of the states of Missouri and Kansas which are certificated to Licensee by the respective state regulatory commissions An entity shall be deemed to be in the "Lisensee's service Area" if it has electric power generation, transmission et distribution facilities located in whole or in part in or adjacent to the above-described area or in counties served in part at retail by Licensee.

(c)

" Sulk Power

• means the electris power, and any attendant energy, styptied or made available at transmission or subtransmission voltage by one satity to another.

(d)

" Entity" means person a private or public cor-poration, a municipality, a cooper,ative, a joint stock assoc-intion, business trust or a lawful association of any of the foregoing constituting, a separate legal entity owning, oper-ating or proposing to own or operate equipment or facilities i

for the generation, transmission, or distribution of slee-eratives, an " entity" is rettricted to those which are ort will be a public utility under the laws of the state in which 'the entity transacts business or under the Federal i

Power Act and are or will be providing electric servios un-

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der a contract or rate schedule on file with,and subject to the regulation of a state regulatory oossaission or the Fed aral Power Comunission.

(e) general and administrative expenses" Cost

• means any and all operat all ownership costs,,which are reaso,nably allocable to thetogether with any a transaction consistadt with industry practices.

inniude a reas Cost shall onable return an Licensee's investment.

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n a ) e. of a pesrtion of the espacity of a genetratiritj unit shall be upon the basis of a rate that will recover to the seller the pro rata part of the fixed costs and oper-sting, maintenance, general and administrative expenses of the unit, provided that, in circumstances in which Licen-see and one or more entities in Licensee's service Area mach takes an undivided interest in a unit in fee, con-struction costs and operation, maintenance, general and administrative expenses shall be paid pro rata.

a 2.

(a)

Licensen shall interconnect with and coordinate operations (by means of reserve sharing and the sale and purchase of emergency and/or scheduled maintenance and/or other classes of bulk power) with any entity (iss) in Lican-sec's Service Area engaging in or proposing to engage in electric bulk power supply on terms that will fully compen-sate Licensee for its costs in connection therewith.

Such coordination arrangements will allow the other party (iss) fullaccesstothegenefitsofgoordination.

(b)

Emeatgency and/or scheduled maintenance bulk power service shall be provided by each party to the ex-tent required by the system in need, and be furnished to the fullest extent available from the supplying system.

Licenses and sach party (ins) shall provide to the other emergency and/or scheduled maintenance bulk power service if and when available from its own generation and from generation of others to the extent it can do so without impairing service to its customers including other elec-tric systems to whom it has firm commitments and the re-esiving party shall fully compensate the other party for its costs in connection therewith.

(c)

Lisensee and the other party (iss) to an inter-connection and reserve sharing arrangement shall from time to time :lointly establish the minimum reserves to be in-stalled and/or provided under contractual arrangements as necessary to maintain in total a reserve margin sufficient to provide adequate reliability of power supply of the inter-sonnected systems ofgthe parties.

Unless otherwise agreed of estimated peak load responsibility.upon, minimum reserves shall be No party to the ar-rangement shall be required to maintain greater reserves s

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. than such minimum, provided that, if the reserve requirements

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of a party are increaged over the anmunt such party would

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be required to maintain or have available without such intes.

connection, then the other party (iss) to such interconnection shall be required to carry or provide for, in addition to i

such minimum reserves, the full amount in kilowatts of such increase.

If in addition to sharing reserves, one party sells

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capacity to another in order for that other to meet its re-serve responsibility, the seller shall be appropriately com-pensated for such sale in accordance with applicable filed rates.

(d)

The parties to such a reserve sharing arrange-i ment each shall provide such amounts of operating (ready and spinning) reserve capacity as may be adequate to avoid the imposition of unreasonable demands on the other in meet-ing the normal contingencies of operating its system.

How-in no circumstances shall a party's operating reserve

over, requirement exceed its' minimum installed reserve require-leent as determined in 2 (c).

1 (e)

Interconnections will not be limited to low roltages when higher 3pitages are available from Licensee 8 s installed facilities in the area where interconnection is 4

cypropriate, if and when the proposed arrangement is found I

to be technically and economically feasible.

Control and I

telematering facilities shall be provided as required for i

cafe and prudent operation of the interconnected systems.

1 (f)

Interconnection and coordination agreements j

chall no't embody any unreasonably restrictive provisions pertaining to intersystem coordination.

Good industry practice as developed in the area from time to time (if j

nst unreasonably restrictive) will satisfy this provision.

3.

Licensee will sell bulk power from new generating capacity planned or under construction at its cost or pur-chase bulk power from any other entity (ies) in Licensee's S3rvice Area engaging in or proposing to engage in genera-tion of electric power when such transaction would serve to reduce the overall costs of new bulk power supply for itself or for the (other),sarty (iss) to the transaction.

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specifically to the opportunity to coordina'.e in the plan- -

ning of new generation, transmission and related facili-ties.

This provision shall not be construed to require Licensee to purchase or sell bulk power if it finds such purchase or sale infeasible or its costs in connection with such purchase or sale' would exceed its benefits therefrom.

8 4.

Licensee and any successor in title shall offer an opportunity to participace in Wolf Creek Nuclear Unit 1.to any entity (ies) in Licensee's Service Area which shall indicate its interest therein in writing delivered to Li-conses prior to october 31, 1974, and in any other nuclear genersting unit (s) which they or either of them, may con-struct, own and operate severally or jointly, during the term of the instant license, or any extension or renewal thereof, by either a reasonable ownership interest in such unit (s ), or by a contractual right to purchase e reasonable portion of the output of such unit (s) at the cost thereof if the entity (iss) so sleets.

Upon timely offer by Lican-see, notice of intention to partleipate in future nuclear units must be given to Licensee in writing prfor to the placement of ord. ors for major equipment.

In connection with such access, Licensee will also offer transmission service as may be required for delivery of such power to such entity (ies) on a basis that will fully compensate Licensee for its cost.

Licensee $hallfacilitatetheexchangeofbulk 5.

(a) power by transmission over its transmission facilities to, from, between or among any entities in Licensee's service Area with which it is at any time interconnected, and be-tween any such interconnected entity (ies) and any other entity (ies) engaging in bulk power supply outside Lican-see's Service Area between whose facilities Licensee's transmission lines and the transmission lines of others would form a sentinuous electrical path, provided that (1) the necessary rights to utilise such(other) transmission lines have been obtained, (2) the reliability of Licensee's bulk power system is not thereby impaired, and (3) the ar-rangements reasonabi'y can be accommodated from a functional cnd technical standpoint.

Such transmission shall be on terms that fully compensate Licenses for its east, including transmission losses associated therewith.

Any entity (ies)

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requesting such transmission arrangements shall give rea '

i sonable advance notice to Licensee of its

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(their) schedulo i

and requirements for bulk power to be scheduled by Lican-j see over Licensee's transmission facilities.

i (b)

Licensee shall include in its planning and construction of facigities to be owned by Licenses suffi-l cient transmission capacity as may be contractually re-

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served for the type of transactions referred to in subpara-1

. graph (a) of this paragraph, provided that the entity (iss) in Licensee's Service Area give Licensee sufficient advance i

j notice as may be necessary to accommodate its (their)

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quirements from a functional and technical standpoint and re-4 provided that such antity(iss) fully compensates Licensee for the contractual reservation by Licensee of capacity in i

its transmission facilities.

4 6

Licensee will sell power for resale to any entity (iss) i

.n Licensee's service Area now engaging in or proposing to i

angage in retail distribution of electric power under con-I tracts for its (their) full.or partial requirements at Li-consee's applicable filed rates to the extent Licensee can do so'without impairing service to its retail customers.

j 7.

The foregoing conditions shall be implemented in a sanner not inconsistent with the provisions of,' and as pro-vided under, the Fedegni Power Act and all other applicable i

l Foderal.and State'iaws and all rates, charges and practices j

in connection therewith are to be subject to the approval cf regulatory agencies having jurisdiction over them.

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