ML20210H467

Requests That NRC Suspend Investigation & Review of Issues Raised by Modesto Irrigation District & Transmission Agency of Northern CA Re Contention That PG&E Had Violated Nuclear License Conditions Known as Stanislaus Commitments

ML20210H467
Person / Time
Site:	Diablo Canyon, Humboldt Bay
Issue date:	08/02/1997
From:	Duncan W DUNCAN, WEINBERG, MILLER & PEMBROKE, P.C. (FORMERLY
To:	Steven Bloom NRC (Affiliation Not Assigned)
References
NUDOCS 9708140032
Download: ML20210H467 (3)

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t K.DMitTED IN w A ONLY SVRACU$C NEW YORM 13e to e ADMITTED IN NY MA S CT tasst47s tale Mr. Steven D. Bloom tsOuAsJ,LvwCN Project Manager of covasc6 Project Directorate IV-2 Division of Reactor Projects III/IV Office of Nuclear Regulation United States Nuclear Regulatory Commission Washington, DC 20555-0001 Re: Pacific Gas and Electric Company; Humboldt Bay Power Plant, Unit 3; Diablo Canyon Nuclear Power Plant, Units 1 and 2; NRC Docket Nos. 50-133, 50-275, and 50-323

Dear Mr. Bloom:

On April 29, 1996, Modesto Irrigation District ("MID"),

filed Comments In Opposition to the Proposed Corporate Restructuring of Pacific Gas and Electric Company ("PG&E"), based f upon MID's contention that PG&E-had violated its nuclear license f

' conditions known as the "Stanislaus Commitments" in refusing to provide transmission service to accommodate a transaction between MID_and Destec Power Services, Inc. and permit MID to secure f]

power-to provide retail _ electric service to certain customers

-located in Pittsburg,-California. gf))

On December 6, 1996, you sent a letter to the undersigned (copy attached).in which you advised that the NRC would conduct "a detailed review of the issues" raised by MID and in a companion filing by the Transmission Agency of Northern California ("TANC"). Your letter requested a more particularized explanation of the charges made by MID and TANC that PG&E had violated the Stanislaus: Commitments.-

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On= January 9, - 1997, MID ' submitted a respo;,se to your '

December-6, 1996 letter request providing substantial additional information respecting its allegations that PG&E had violated the terms and conditions of its Stanislaus Commitments. TANC also responded to your December 6, 1996 letter by letter dated January 9, 1997 Since this exchange of correspondence, we have heard nothing further concerning the NRC's review of the issues posited by_MID and TANC.

Intervening Events During the pendency of this matter, MID and PG&E have conducted a series of negotiations respecting MID's proposal and intent to provide retail electric service to certain customers located outside of MID's current electric service boundaries,-

including, without limitation, customers located in the cities of Pi t t sburg', Escalon, Ripon, Riverbank and Oakdale, California.

As a result of such negotiations, MID and PG&E have executed agreements related to, among other things, the purchase by MID and the sale _by PG&E of certain substation and distribution facilities located in or near and which serve the communities of Ripon, Escalon, Riverbank and Oakdale, California.

MID and PG&E have executed definitive agreements, including a Master Agreement, which will incorporate and memorialize the c matters agreed to by the parties.

In addition to the execution of the Master Agreement and related agreements, PG&E must obtain regulatory approval from both the California Public Utilities Commission ("CPUC") and the Federal Energy Regulatory Commission ("FERC") for the transfer of jurisdictional facilities to MID. PG&E has filed its application for approval of the transaction with-the CPUC(CPUC Docket No.

A.97-07-030, filed July 24, 1997). A related filing will be made by PG&E with the FERC.

To preserve the rights of both MID and PG&E and to ensure the preservation of the status quo in all pending legal proceedings during the period in which the parties implement their agreement and obtain necessary regulatory approvals, MID and PG&E, on-July 23, 1997, signed an " Agreement between Modesto Irrigation District and Pacific Gas and Electric Company with

. respect to Tolling the Period of Limitations and/or Suspension of Certain Legal Proceedings" (" Tolling Agreement"). Under the Tolling Agreement, MID has agreed, inter alia, to request that the NRC suspend its investigation and review of the issues raised by MID and TANC herein.

,. Upon implementation of the agreements between MID and PG&E and once PG&E has obtained all necessary regulatory approvals from the CPUC and this Commission, MID will withdraw its comments and objections raised in .ts filings of April 29, 1996 and January 9, 1997 In the meantime, MID respectfully requests that the NRC suspend its current review and investigation of the matters posited by MID and TANC in the cottse of these proceedings.

It would be helpful and facilitate the settlement between MID and PG&E if you could acknowledge receipt of this request and confirm that the NRC has, in fact, suspended any action in connection with its review of the allegations made by MID in these proceedings.

Respectfully submitted,

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'Wallace L. Duncsii Duncan, Weinberg, Miller

& Pembroke, P.C.

1615 M Street, N.W.

Suite 800 Washington, D.C. 20036 (202) 467-6370 (202) 467-6379 (fax)

Counsel to Modesto Irrigation District Enclosure cc: William Manheim, Esq.

Scott Steffen, Esq.

Lloyd H. Harvego Michael Mcdonald Robert McDiarmid, Esq.