ML20246L810

Forwards Antitrust Settlement Notice Submitted for Fr Publication

ML20246L810
Person / Time
Site:	Farley
Issue date:	07/13/1989
From:	Reeves E Office of Nuclear Reactor Regulation
To:	Hairston W ALABAMA POWER CO.
References
A, TAC-66593, TAC-66594, NUDOCS 8907190004
Download: ML20246L810 (2)

Text

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!Mr. W. G. Hairston,;III Senior.Vice. President

. Alabama Power Company .

' 40 Inverness' Centet Parkway -

P.O. Box 1295E . .

Birmingham,-Alabamai 35201

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SUBJECT:

TRANSMITTAL-0F' ANTITRUST SETTLEMENT NOTICE'- JOSEPH M. FARLEY-NUCLEAR PLANT, UNITS:1'AND-2 (TAC NOS.;66593 AND 66594)-

' Enclosed is a ' copy 'of the ' Antitrust Gettlement Notice forwarded-to the

.0ffice of_the Federal. Register for, publication.-

Sincerely,

' Original Signed By:

Edward A. Reeves, Senior Project Manager.

Project Directorate- 11 1 -

Division of Reactor Projects --I/II-Office of Nuclear Reactor Regulation Encicsure:

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Docket Nos. 50-348A i- 50-364A Mr. W. G. Hairston, III~

j. Alabama Power Company Joseph M. Farley Nuclear Plant l

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Mr. R. P. Mcdonald Resident Inspector 40 Inverness Center Parkway. U.S. Nuclear Regulatory Commission l

Executive Vice President P. O. Box 24 - Route 2 Alabama Power Company Columbia, Alabama 36319 P. O. Box 1295 Birmingham, Alabama 35201 Mr. Bill M. Guthrie L. Biard MacGuineas, Esquire Executive Vice President Volpe, Boskey and Lyons Alabama Power Company 918 16th Street, N.W..

P. O. Box 2641 Washington, D.C. 20006 Birmingham, Alabama 35291-0400 Mr. Louis B. Long, General Manager James A. Vann, Jr.

Southern Company Services, Inc. Alabama Electric Corporation .

P. 0. Box 2625 P. O. Box 550 Birmingham, Alabama 35202 .

Andalusia, Alabama 36420 Chairman Regional Administrator, Region II Houston County Commission U.S. Nuclear Regulatory Commission Dothan,-Alabama 36301 101 Marietta Street, Suite 2900 Atlanta, Georgia 30323 Mr. D. N. Morey General Manager .% cley Nuclear Plant J. A. Bouknight, Jr.

P. O. Box 470 Douglas G. Green Ashford, Alabama 36312 Newnan & Holtzinger, P.C.

1615 L Street, N.W.

Washington, D.C. 20036 Robert A. Buettner, Esquire Balch, Bingham, Baker, Hawthorne, Williams and Ward P. O. Box 306 Birmingham, Alabama 35201 i

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Enclosure-7590-01 NUCLEAR REGULATORY COMMISSION DOCKET N05. 50-348A, 50-364A ALABAMA POWER COMPANY JOSEPH M. FARLEY NUCLEAR PLANT, UNITS 1 AND 2 ANTITRUST 5tIILEMENT On June 29, 1984, the Alabama Electric Cooperative, Inc.:(AEC) petitioned the Nuclear Regulatory Commission (NRC) pursuant to 10 C.F.R. 62.206 to enforce Antitrust License Condition No. 2 which is incorporated in the Joseph H.

Farley Nuclear Plant, Units 1 had 2 (Farley) licenses. On June 16, 1986, the Director of the Office of Nuclear Reactor Regulation issued a. Notice of Violation that cited eleven areas of non-compliance kith Antitrust License Condition No. 2.

After extensive discussions and negotiations between AEC, Alabama Power Company (APCo) and the NRC staff, AEC and APCo entered into a joint. settlement agreement dated April 25, 1989 that fully resolves the original controversy which led AEC to petition the NRC in June of 1984.

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DISCUSSION The antitrust license conditions attached to the Farley licenset resulted from the NRC's antitrust construction permit review in the late 1970's and subsequent court proceedings in the early 1980's. The license condition in question required APCo to offer to sell to AEC an undivided ownership interest in the Farley plant.

AEC's petition was precipitated by the inability of APCo and AEC to mutually agree upon the terms and conditions of the proposed sale.

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e,- .a Docket Nos. 50-348A, 50-364A 2 1

On the basis ot the' AEC petition and the subsequent staff analysis of the allegations raised by AEC, the Director of the Office of Nuclear Reactor j Regulation (Director) issued a Director's Decision and Notice of Violation (NOV)againstAPCoonJune 16, 1986. The Director's Decision denied AEC's petition in part and granted it in part. The NOV cited eleven of the fourteen allegations raised by AEC in its petition as areas of non-compliance by APCo with Antitrust License Condition No. 2. Subsequent to the issuance of the NOV, APCo and AEC entered into protracted negotiations that ultimately resulted in the parties consummating a Purchase and Ownership Agreement on November 18, 1988 for the sale by APCo to AEC of an ownership interest in APCo's James H. Miller, Jr. Steam Electric Generating Plant, Units 1:and 2.

This Purchase and Ownership Agreement allowed AEC to substitute its rights to purchase a portion of the Farley plant, provided for by Farley Antitrust License' Condition No. 2, for the rights to purchase 1 portion of APCo's James H. Miller, Jr. coal-fired power plant.

APCo and AEC have concluded that the settlement agreement summarized above resolves the dispute between the two parties that was characterized in AEC's request for a 2.206 enforcement action filed before the NRC on June 29, 1984.

Docket Nos. 50-348A, 50-364A 3 ,

As a result of the consummation of this settlement agreement, the staff, by this Notice, hereby completes its review of this matter.

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Dated at Rockville, Maryland this 20th day of June 1989.

FOR THE NUCLEAR REGULATORY COMMISSION DowaM4

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Darrel A. Nash, Acting Chief Policy Development and Technical Support Branch Program Management., Policy Development and Analysis Staff Office of Nuclear Reactor Regulation

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