ML20210C287
| ML20210C287 | |
| Person / Time | |
|---|---|
| Site: | 05000000, Nine Mile Point |
| 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-86-075, SECY-86-75, NUDOCS 8603210215 | |
| Download: ML20210C287 (3) | |
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March 3, 1986 SECY-86-75 (Information)
For:
The Commissioners From:
Victor Stello, Jr.
Acting Executive Director for Operations
Subject:
FINDING OF "N0 SIGNIFICANT CHANGES" PURSUANT TO THE OPERATING LICENSE ANTITRUST REVIEW 0F TiiE NINE MILE POINT NUCLEAR STATION, UNIT 2
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 Office of Nuclear Material Safety and Safeguards, as appropH: te, the Director of the Office of Nuclear Reactor Regulation has made a finding that no significant antitrust changes have occurred in connection with the Nine Mile Point Nuclear Station, Unit 2 operating license antitrust review.
Coordination: The finding was concurred in by the Office of the Executive Legal Director.
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Victor Stello, Jr.
Acting Executive Director for Operations
Enclosure:
Director's Finding of No Significant Change DISTRIBUTION:
Contact:
William Lambe OCA 492-7707 OIA OPA REGION I h8603210215860303 gF SECY ASLBP 86-075 ASLAP p
DESIGUATED ORIGINAL EDO SECY m
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4 NINE MILE POINT NUCLEAR STATION, UNIT 2 OPERATING LICENSE ANTITRUST REVIEW FINDING OF NO SIGNIFICANT CHANGE Section 105(c) of the Atomic Energy Act of 1954, as amended, provides for an antitrust review of an application for an operating license if the Comission determines that significant changes in the licensee's activities or proposed activities have occurred subsequent to the previous construction
-permit review. The Comission has delegated the authority to make the "significant change" determination to the Director of the Office of Nuclear Reactor Regulation. Based upon an examination of the events since issuance of the Nine Mile Point Unit 2 construction permit to Niagara Mohawk Power Corporation et al., the staff of the Planning and Resource Analysis Branch, Office of NuiT: ear Reactor Regulation, and the Antitrust Section, 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.
l In reaching this conclusion, the staff considered the structure of the electric utility industry in the state of New York, the events relevaat to the Nine Mile Point, Unit 2 construction permit reviews and the events that have occurred subsequent to the construction permit reviews.
The conclusion of the staff's' analysis is as follows:
"Nine Mile Point Nuclear Station, Unit 2 (NMP 2) is to be jointly owned by five investor owned utilities in New York as follows:
Niagara Mohawk Power Corporation 41%
Long Island Lighting Company 18%
New York State Electric and Gas Corporation 18%
Rochester Gas and Electric Corporation 14%
Central Hudson Gas and Electric Corporation 9%
"The five co-owners of NMP 2 received antitrust reviews by the Departnent of Justice with respect to their participation in NMP 2 and in various other planned nuclear generating plants during the period from 1972 through 1978.
The Attorney General, in his antitrust advice letters to the Nuclear Regulatory Comission, expressed concern only with respect to Niagara. One concern was that Niagara might not be willing to wheel power for the Jamestown municipal electric system if Jamestown decided to purchase at wholesale all of its electric power requirements. The other concern regarded Niagara's continuing opposition to the effort of the town of Messena to establish a municipal electric system. Although.the Attorney General did not recomend a hearing, he did advise the Comission to monitor the subsequent activities of Niagara with respect to these two issues.
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" Subsequently, Jamestown decided to install electrostatic precipitators on its coal fired plants rather than purchase its total power requirements.
Also, Messena has established a distribution system, and Niagara has agreed to wheel power to Messena. Thus, the two concerns expressed by the Attorncy General have been resolved.
" Staff's review of changes in load forecasts, capacity expansion programs, and rate schedules does not suggest any anticompetitive effects.
New York State Electric and Gas Corporation's acquisition of the Peach Lake system did not significantly alter regional market concentration and was a business transaction with no apparent consumer or regulatory opposition.
"InlightoftheCommission'sguidingcriteria,noneofthechangeswhich have been surfaced in this review can be considered "significant, and therefore, staff does not recommend a finding of "significant change."
. Based on the staff's analysis, it is my finding that a formal operating license antitrust review of Nine Mile Point, Unit 2 is not required.
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k Harold R. Denton, Director Office of Nuclear Reactor Regulation
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