ML20210C273
| ML20210C273 | |
| Person / Time | |
|---|---|
| Site: | 05000000, Harris |
| Issue date: | 03/03/1986 |
| From: | Stello V NRC OFFICE OF THE EXECUTIVE DIRECTOR FOR OPERATIONS (EDO) |
| To: | |
| Shared Package | |
| ML082401831 | List: |
| References | |
| FOIA-86-126, FOIA-86-127, FOIA-86-131, FOIA-86-80, TASK-PII, TASK-SE A, SECY-86-074, SECY-86-74, NUDOCS 8603210025 | |
| Download: ML20210C273 (3) | |
Text
_ _ _ _ _
pp"% 9 March 3, 1986 SECY-86-74 POLICY ISSUE The Commis9f310fJTiation)
For:
From:
Victor Stello, Jr.
Acting Executive Director for Operations -
Subject:
FINDING OF "N0 SIGNIFICANT CHANGES" PURSUANT TO THE OPERATING LICENSE ANTITRUST REVIEW 0F THE SHEARON HARRIS NUCLEAR POWER PLANT, UNIT 1
Purpose:
To inform the Commission of a completed staff action.
Discussion:
Pursuant to procedures set forth by the Commission in delegating authority to the Director of the Office of Nuclear Reactor Regulation and the Director of the i
Office of Nuclear Material Safety and Safeguards, as appropriate, the Director of the Office of Nuclear Reactor Regulation has made a finding that no significant antitrust changes have occurred in connection with the Shearon Harris, Unit 1 operating license antitrust review.
l Coordination: The finding was concurred in by the Office of the Executive Legal Director.
1
/ -
- y.-
Victor Stello, Jr.
Acting Executive Director for Operations
Enclosure:
Director's Finding of DISTRIBUTION:
No Significant Change Commissioners OGC OPE OI OCA OIA OPA
Contact:
William Lambe 492-7707 REGION II EDO ASLBP ASLAP SECY
/h8603210025860303 DESIGi:AIED OTdGINAL f(/
4P" SECY k
86-07^
W Certift 4 By--
[
(
g
.. s n.
-~
SHEARON HARRIS NUCLEAR POWER PLANT, UNIT 1 OPERATING LICENSE ANTITRUST REVIEW FINDING OF NO SIGNIFICANT CHANGE i
'Section 105c(2) of the Atomic Energy Act of 1954, as amended, provides for an
- antitrust review of an application for an operating license if the Commission determines that significant changes in the licensees' activities or proposed activities have occurred subsequent to the previous construction p'ermit review.
The Commission has delegated the authority to make the 4
significant change" determination to the Director, Office of Nuclear Reactor Regulation.
Based upon an examination of the events since issuance of the Shearon Harris construction permits to the Carolina Power and Light Company, the staffs of the Planning and Resource Analysis Branch, Office of Nuclear Reactor Regulation and the Antitrust Section of the Office of the Executive Legal Director, hereafter referred to as." staff", have jointly concluded, after consultation with the Department of Justice, that the changes that have occurred since the antitrust construction permit review are not of the nature to require a second antitrust review at the operating-license stage of.the application.
4 In reaching this conclusion, the staff considered the structure of the 4'
electric' utility industry in both North and South Carolina, the events relevant to_the Shearon Harris construction permit review and the related
- Brunswick operating license review and the events that have occurred subsequent to these reviews:
1 The conclusion of the staff's analysis is as follows:
2
" Carolina Power and Light (CPL) and the North Carolina Eastern Municipal Power Agency (NCEMPA) are joint owners of the Shearon Harris Nuclear Power Plant (Harris).
CPL is a relatively large, fully
-integrated investor owned utility system serving in North Carolina and South Carolina.
NCEMPA is a joint action agency, representing over thirty municipal electric utility systems in North Carolina.
CPL supplies wholesale power to NCEMPA, and contractually provides transmission service between NCEMPA and its members.
CPL also provides
- wholesale service to eighteen electric membership cooperatives, four other municipal electric utilities, and one private utility.
"The Department of Justice (Department) rendered antitrust advice to the Commission in 1972 following the Department's review of CPL in connection with CPL's construction permit (CP) application for Harris.
In that advice letter, the Department noted that it had received separate complaints regarding CPL's practices, one from a group of fourteen municipal electric distribution utilities, and a second from EPIC, Inc., an agency representing both municipals and cooperatives in the area.
In addition, the De restrictive provisions in CPL'partment noted several objectionable s wholesale contracts.
CPL denied any anticompetitive intent or actions, but agreed to remove the alleged restrictive contract provisions, and agreed to accept certain procompetitive conditions in the Harris licenses in exchange for a "no hearing" advice letter from the Department.
O
s v..
" Subsequent to the Harris CP antitrust-review, the Department reviewed, (1) CPL with respect to the Brunswick operating license (OL) app'lication, and (2) NCEMPA with respect to its ownership participation in Harris.
In neither instance, did the Department express any further antitrust concerns.
Staff's review of changes in load. forecasts, generation and transmission additions, power delivery points, and rate schedules does not suggest any significant anticompetitive effects.
Further, CPL's purchases of the Domestic Electric Company and of Pinehurst, Inc.,
indicate reasonable business transactions which had no significant
. consumer or local-regulatory opposition.
Finally, staff views CPL's sale of an ownership share in Harris to NCEMPA and the associated service arrangements as consistent with antitrust conditions contained in other nuclear power plant licenses, and the transmission service arrangements consistent with its Harris antitrust license conditions.
Although negotiations for transmission service arrangements between CPL and the North Carolina Electric Membership Corporation'(NCEMC) have not been completed, any subsequent problems that may arise therewith may be treated under the Commission's rules for enforcement of license conditions.
In conclusion, staff does not recommend a "significant change" finding for the Harris OL application."
Based upon staff's' analysis, it is my finding that a formal operating license antitrust review of the Shearon Harris Power Plant, Unit 1, is not required.
/
w Harold R. Denton, Director Office of Nuclear Reactor Regulation
'I
-t e =
1 e
4
~
, ~. - -,.. -
.._.-.,._..,---,.---,,-,--.,,__.,---,,a-
.....,,-,,,,,-n.,---
,,...-,,.,.v-
.