ML20214W870

Comments on Proposed Transfer of OL to Sys Energy Resources, Inc.No Objection Raised to Noted Request Re Transfer of Operating Responsibility.Certificate of Svc Encl

ML20214W870
Person / Time
Site:	Grand Gulf
Issue date:	12/03/1986
From:	Weightman D MISSISSIPPI, STATE OF, SPIEGEL & MCDIARMID
To:
References
FRN-51FR39927 TAC-62754, TAC-62755, NUDOCS 8612100441
Download: ML20214W870 (5)

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%g O %Mto DOCKETED USNRC RULES & PROCEDURES BR DRR:ADM UNITED STATES OF gEglCA3 P4 :37 BEFORE THE NUCLEAR REGULATORY COMMISSION Mississippi Power & Light Co.

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Dockets Nos. 50-416 COMMENTS OF MUNICIPAL ENERGY AGENCY OF MISSISSIPPI ON PROPOSED TRANSFER OF OPERATING LICENSE I.

The Municipal Energy Agency of Mississippi ("MEAM"), for itself and on behalf of its member cities, 1/ hereby responds to the Nuclear Regulatory Commission ("NRC" or " Commission") Notice of Proposed Amendment of Facility Operating License, 51 Fed. Reg. 39927 (November 3, 1986).

The notice mentions, but does not yet request comments on, issues raised by the request of Mississippi Power and Light Co. ("MP&L") to transfer to System Energy Resources, Inc. ("SERI") or eliminate from its operating license for Grand Gulf Nuclear Station, Units 1 and 2 (" Grand Gulf") the antitrust conditions. 2/ MEAM does not object to granting SERI 1/

MEAM is a joint agency as defined in Section 77-5-705(c),

Mississippi Code Annotated 1972, Chapter 363, Laws of Mississippi of 1978.

As such MEAM is empowered to own and operate generation and transmission facilities, to acquire power and energy, and to coordinate bulk power transactions on behalf of its members.

The members of MEAM are the.following Mississippi cities:

Canton, Clarksdale, Durant, Greenwood, Itta Bena, Kosciusco, Leland, and Yazoo City.

2/

The notice states:

[T]he commission proposes to proceed with the

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8612100441 861203 PDR ADOCK 05000416 G

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. the right to undertake the operation of the Grand Gulf Project.

In this context, we have no objection to the transfer of operating responsibility which this Commission apparently envisions, so long as there is no question that the transfer granted does not affect the antitrust conditions now imposed upon MP&L. 3/

II.

Any communications with respect to the issues raised by any of the proposed license modifications should be addressed to:

Robert C. McDiarmid, Esquire Donald Weightman, Esquire Spiegel & McDiarmid 1350 New York Avenue, N.

W.

Suite 1100 Washington, D.

C.

20005-4798 David R.

Hunt, Esquire Sullivan, Hunt, Spell & Henson P.

O.

Box 1196 123 Court Street Clarksdale, Mississippi 38614

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issuance of an amendment to the facility operating license which transfers control and operational responsibilities to SERI and also continues to hold MP&L and SERI to the terms of existing antitrust conditions pending completion of review of the antitrust considerations of this amendment request.

50 Fed. Reg. at 39927.

3/

We note that there is a suggestion in the filing that if the operating responsibility is shifted :.o SERI, there is no longer any jurisdictional basis for continued imposition of any license conditions upon MP&L.

Any transfer permitted should be on terms which ncke it clear that that suggestion will not be permitted to mature into a further argument.

w 3-Robert-F. Burkard, General Manager Municipal Energy Agency of Mississippi P.

O.

Box 1408 Greenwood, Mississippi 38930 III.

The Federal Register notice does not appear to provide for hearings on antitrust issues raised by the request for transfer of the Grand Gulf license.

In the event that antitrust hearings are held, after the required notice is given, MEAM wishes to make it clear that it reserves the right to intervene and seek party status for such antitrust hearings. 4/

However, so that there will not be any confusion, MEAM notes strong concern about the proposal that MP&L be relieved of any antitrust obligations under its license conditions.

While it is true that MEAM and MP&L have a series of contractual arrangements which cover most of the matters dealt with in the license conditions, those arrangements are not identical to, or wholly congruent with, the license conditions.

While we will comment on that proposal when and if it is noticed, we note that if SERI is going to assume nuclear operations responsibility for Grand Gulf for all of the MSU system, it might be appropriate to 4/

The member cities of MEAM are wholesale customers of and competitors with MP&L.

Accordingly, any change in MP&L's antitrust obligations an. der Grand Gulf license conditions would af fect the interests of ~MIUW and its members, whose interests are protected by statute in NRC antitrust proceedings.

Any change in MP&L's antitrust obligations under the license it currently holds would constitute activity under the license, and such change could create or maintain a situation inconsistent with the antitrust laws.

A consider the application of the license conditions to the same entities for which SERI is acting as agent and proxy.

CONCLUSION For the above stated reasons, MEAM does not object to the noticed request for transfer of operating responsibility for Grand Gulf, so long as it is clear that MP&L is not relieved of its antitrust obligations under the license conditions by that action, and so long as it is clear that any proposed modification of those antitrust obligations will'be noticed prior to action.

Respectfully submitted, b

Robert C. McDiarmid Donald Weightman Attorneys for the Municipal Energy Agency of Mississippi Law Offices of:

Spiegel & McDiarmid 1350 New York Avenue, NW Suite 1100 Washington, D.

C.

20005-4798 202/879-4000

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J CERTIFICATE OF SERVICE I hereby certify that I have this day caused the

-foregoing. Comments of Municipal Energy Agency of Mississippi on Proposed Transfer of Operating License to be served on the following persons, by hand delivery:

Office of the General Counsel U.

S.

Nuclear Regulatory Commission

>1717 H Street, N.

W.

10th Floor Washington, D.

C.

20555 Nicholas S.

Reynolds, Esquire Bishop, Liberman, Cook, Purcell, and Reynolds 1200 - 17th Street, N. W.

Suite 800 Washington, D.

C.

20038 and by first class mail, postage prepaid, to:

Oliver D.

Kingsley, Jr.

Vice President Nuclear Operations System Energy Resources, Inc.

P. O.

Box 23054 Jackson, Mississippi 39215 N

f-

~

Robert C. Mcbiarmid Donald Weightman Attorneys for the Municipal Energy Agency of Mississippi December 3, 1986 I

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