ML19329C708

Applicants' Supplemental Answer to City of Cleveland Petition to Intervene.Requests Petition Be Denied. Cleveland Electric Illuminating Co 720411 Ltr to Cleveland Dept of Law & Certificate of Svc Encl

ML19329C708
Person / Time
Site:	Davis Besse
Issue date:	04/10/1973
From:	Churchill B CLEVELAND ELECTRIC ILLUMINATING CO., SHAW, PITTMAN, POTTS & TROWBRIDGE, TOLEDO EDISON CO.
To:	US ATOMIC ENERGY COMMISSION (AEC)
References
NUDOCS 8002180201
Download: ML19329C708 (9)

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UNITED STATES OF AMERICA ATOMIC ENERGY CC:S!ISSICN In the :Iatter of )

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THE TOLEDO EDISON COMPANY and )

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THE CLEVELA:!D ELECTRIC ILLUMINATING ) Docket No. 50-346A C C'M P A:4 Y )

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Davis-Besse :Iuclear Power Station )

SUPPLEMENTAL ANEWER OF APPLICA:ITS TO CITY OF CLEVELA'!D PETITIO:: TO I:!TER7ENE The Staff of the Cennission under date of April 3, 1973, has filed a Supplemental Answer in this matter which, ; hen considered with certain other facts herein stated, should, in the opinicn of Applicants, recuire a denial of the peti-tion to intervene.

1. As pointed out, the Attorney General, pursuant to 105c of the Act, has advised the Commission that an anti-trust hearing would net be recuired. l l

2. It is stated by the Staff in its Supplemental '

Answer that, after "a full evidentiary hearing" by FPC, "a review of the antitrust aspects of the FPC proceeding by the Staff has not revealed any evidence concerning anti-ccmpetitive practices or antitrust conduct by CEI" and that "the Staff is inclined to agree with the Attorney General's view of the competitive situation in the area of concern that there is apparently no anti-cccpetitive situation for the Cc= mission 8 002180 M /7

N to consider." Nevertheless the Staff recommends that the matter be noticed for an antitrust hearing.

3. At the meeting of the parties with the Staff on March 1, 1973, referred to in the Supplemental Answer of the Staff, the City reiterated the same complaints made to the Federal Power Commission and disposed of by its order of January 11, 1973, and complained that CEI was failing to comply with the FPC order. On March 9, 1973, FPC issued its opinion and order denying rehearing and stay, a copy of which was filed in this docket by Applicante en March 14, 1973, in zhich it was noted that CEI had accepted the prior order, that the City had not and that, if the City did not comply within 15 days, CEI was to be relieved of all obli-gations under the January order.

4. At the meeting on March 1, Applicants stated their position that under Article VIII, Section 6 of the i

Ohio Constitution, joint ownership of the Unit by the City and private corporations was prohibited. The parties were requested to submit letters on the subject and the City admitted the correctness of the position of Applicants by saying, "It is quite conceivable that under Article VIII, Sections 6 and 13 of the Ohio Constitution, Cleveland itself could not own 'a piece of the action' in Davis-Besse."

5. At the meeting on March 1, Staff requested the City to submit within 3 weeks a statement of the specific l

relief it sought through the intervention, with copies to I Applicants. The Staff advises that the City failed to make I 2

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any such submission and Applicants have received nothing on the subject. This failure of the City becomes more impres-sive since it was disclosed at the March 1 meeting that during the FPC hearings in the first half of 1972 counsel for the City had stated that it was interested in acquiring part of Davis-Besse and that CEI responded by letter dated April 11, 1972, a copy of which is attached, asking for a clear statement of what the City wanted. Here again there has been no response. In spite of this, the Staff now recommends the cumberseme and expensive procedure of an antitrust hearing to again afford the City the opportunity to make the same presentation to a Ecard which it failed to make in response to two prior invitations. It would seem unfair to impose the burden of an additional hearing on Applicants because of the default of the City in making any showing of what it wants, particularly when it has admitted that there cannot be joint cwnership as scught by its peti-tion. The appointment of a Board will simply involve unneces-sary delay and expense. This is even more true when, as the Staff points out, the dispute between Petitioner and CEI "does not involve in any manner the majority shareholder and operating utility, the Toledo Edison Company."

6. At the meeting on March 1 and in his letter on the constitutional question, Mr. Ardery, counsel for the City, mentioned the alternative of a supply frcm Davis-Besse 1

through American Municipal Power-Ohio, Inc. (AMP-0). Under date of April 6, 1973, Mr. Ardery withdrew as counsel in )

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this case and at the same time Mr. Ardery filed on behalf of AMP-O a petition for intervention in this case seeking a share of Davis-Besse Mr AMP-O members which include the City of Cleveland in an amount "not yet exactly determined,"

but stating preliminary indications "are that AMP-O would need 50 to 100 megawatts from the Davis-Besse station."

7. In addition to the foregoing, at the meeting on March 1, the City stated it needed the 200 mw from Cavis-Besse because the City would be required to close down its generating facilities in 1975 because of air pollution regu-lations. It clearly is not the function of this Commission to compel owners of nuclear units to supply energy in any manner to another merely because of its inability to supply itself.

WHEREFORE, Applicants again respectfully request that the Ccmmission deny the Petition To Intervene and the amendment thereto.

Respectfully submitted, SHAW, PITTMAN, PCTTS & TRONERIDGE

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By s-Bruce W. Churchill Counsel for Applicants Dated: April 10, 1973 i I i  ;

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UNITED STICES OF A:iERICA ATOMIC ENERGY CCMMISSION In the Matter of )

)

! TIIE TOLEDO EDISON COMPANY and ) i

)

TIIE CLEVELidiD ELECTRIC ILLUMINATING ) Docket No. 50-346A COMPANY )

)

Davis-Besse Nuclear Power Station )

CERTIFICATE OF SERVICE I hereby certify that copies of Supplemental

Answer of Applicants to City of Cleveland Petition To i Intervene were served by depcsit in the United States mail

! upon the following this 10th day of April, 1973.

1 i

i Benjamin H. Vogler, Esq.

Antitrust Counsel for Regulatory Staff U. S. Atomic Energy Commission Washington, D. C. 20545 Joseph J. Saunders, Esq.

Antitrus: Division i Department of Justice Washington, D. C. 20530 ,

l Robert D. Hart, Esq.

Assistant Law Director City of Cleveland 44114 Cleveland, Ohio Atomic Safety and Licensing Board Panel U. S. Atomic Energy Ccamission Washington, D. C. 20545 l

l l

l

, - - . , _ . - -._, _..___m - _

, Mr. Frank W. Karas Chief, Public Proceedings Branch l

Office of the Secretary U. S. Atcaic Energy Ccr.tmission

) Washingtcn, D. C. 20545

., Raymond Kudukis, Director <

j Warren D. Hinchee, Commissioner L City of Cleveland l

l 1201 Lakeside Avenue i Cleveland, Ohio 44114 i j Leslie Henry, Esq.

Ful'.o r , Henry, Hodge & Snyder 300 Madison Avenue Toledo, Ohio 43604 j Donald H. Hauscr, Esq. l j Managing Attorney l i The Cleveland Elactric

! Illuminating Company

] 55 Public Square

, Cleveland, Ohio 44101 i Philip P. Ardery, Esq.

Brown, Ardery, Todd & Dudicy

!. Kentucky Home Life Building Louisville, Kentucky 40202 SHAW, PITTMAN, POTTS & TROWBRIDGE

. . . . l ,-

.t BY Bruce W. C hurc ..l ll Dated: April 10, 1973

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