ML19261E759

Interrogatories & Document Requests Submitted by Intervenor Skagitonians Against Nuclear Plants to Applicants. Requests Info Re Jointly Owned Independent Subsidiary. Seattle Times 790607 Article & Certificate of Svc Encl

ML19261E759
Person / Time
Site:	Skagit
Issue date:	06/25/1979
From:	LEED, R.M.
To:
References
NUDOCS 7908300763
Download: ML19261E759 (7)

Text

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.ac UNITED STATES OF AMERICA NUCLEAR REGULATORY COMMISSION n5 JUN 2 91979 *

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., _ r.u g BEFORE THE ATOMIC SAFETY AND LICENSING BOARD M g

In the Matter Of: )

)

PUGET SOUND POWER AND ) Docket Nos. 50-522 LIGHT COMPANY, et al., ) 50-523

)

(Skagit Nuclear Power Proj ect, )

Units 1 and 2) )

)

INTERROGATORIES AND REQUESTS FCR PRODUCTION TO PUGET SOUND POWER AND LIGHT CO.

AND OTHER APPLICANTS (Dated June 25, 1979)

In accordance with 10 CFR, 52.740B and 10 CFR S2.741, please answer the following Interrogatories and respond to the accompanying Requests for Production.

Documents to be produced should be presented at the offices of undersigned counsel at 9:00 a.m. on July 16 , 1979, or at such other time and place as may be agreed upon.

INTERROGATORY NO. 1: Attached is a copy of a newspaper story which appeared in the Seattle Times on June 7, 1979.

Is the information contained therein accurate? If not, please set forth all respects in which such information is not accur-ate.

ANSWER:

790830o'763 2027 0 9 INTERROGATORY NO. 2: How long have the applicants had under discussion the formation of a "j ointly owned indepen-dent subsidiary company" which would undertake construction, or financing, or both, of the Skagit plants? Please identify all documents which reflect the fact and content of such dis-cussions, to date.

ANSWER:

INTERROGATORY NO. 3: Has the consideration, by the app-licants, of the formation of a j ointly owned independent sub-sidiary company to assist with construction or financing, or both, of the Skagit nuclear plants, been disclosed to the NRC staff at any time? If not, why not? If so, please give full particulars, and describe all documents which have been sub-mitted or trancmitted to the NRC staff in that connection, 2027 038 ANSWER:

INTERROGATORY NO. 4: When did any of the applicants first inform the Bonneville Power Administration of the plan to form a j ointly owned independent subsidiary company to assist with the financing, or construct ion, or both, of generating facil-ities, including the Skagit plant? Please identify all docu-ments of any kind which have been submitted or transmitted to the Bonneville Power Administration in that connection, to date.

ANSWER:

2027 039 INTERROGATORY No. 5: When and how did any of the appli-cants first inform the Securities and Exchange Commission of an intention to pursue the formation of a jointly owned inde-pendent subsidiary company which would assist in the financing, or construction, or both, of power generating facilities?

Please describe all documents which have been submitted to the Securities and Exchange Commission at any time in con-nection with such proposal, and also describe all such docu-ments which have been submitted to any other federal or state agency, including the United States Congress, the state power plant site evaluation council, and the governor.

ANSWER:

INTERROGATORY NO. 6: Please explain how the current version of the regional power bill would permit a jointly owned independent subsidiary company to build or finance, or both, new power plants. Please identify all documents which reflect or embody such a plan.

ANSWER:

n n- n - 3

INTERROGATORY NO. 7: Please explain how the formation of a jointly owned independent subsidiary company would per-mit the financing of the construction of new power plants by the issuance of bonds, rather than stock, and identify all documents, reports, and studies, which pertain to this sub-ject, and which have been prepared by or for you at any time, to date. Please also explain why such bonds would have a lower interest rate than bonds issued by the applicants dir-ectly, and identify all documents, studies, or reports, which explain or discuss the reasons why such interest rates would be lower.

ANSWER:

INTERROGATORY NO. 8: Please identify all documents, including correspondence, memoranda, notes, reports, and other records of any kind, which have been:

a. Produced internally by any of the applicants,

b. Exchanged by the applicants, or their attorneys, consultants, or agents, And which relate to the proposal to form a jointly owned but independent subsidiary company to build new power plants.

2027 041

ANSWER:

INTERROGATORY NO. 9. Has the proposal to form a jointly owned but independent subsidiary company to build new power plants been referred to in any formal filing with the SEC, or in any form 10-K, or in any security prospectus, filed by any of the applicants , to date? If so, please identify each such document. If not, please explain why no such reference has been made, even though such a plan was under consideration.

ANSWER:

INTERROGATORY NO. 10: Please explain why the applicants are requesting an exceptic;n from the Public Utility Holding Company Act with respect to their proposal to form a j ointly 2027 042

owned but independent subsidiary company to build new power plants, and identify all documents which contain or reflect such explanation.

ANSWER:

REQUEST FOR PRODUCTION NO. 1: Please produce for in-spection and copying at the ottices of plaintiffs' counsel, all documents identified or described in your answers to the foregoing interrogatories.

DATED this 85 day of June, 1979.  ; .

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            %                          (Continued / om Page f.)                  BL'T MacDOULD sa:J mc>t of 1 l

1 - h U the pnvate atWt:es that .m.J , the legislarne etemption. , hat bill is pencina in Congress. fort'i the p.nt:yenM sm:d2a.7 g j wc w . 2 Ardrew '.f acDocaid, ass. start correany -o s could recene an admmdrnve enmct.on wuhnut l yp. ch:ef counsen for the S.E.C., uid

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las of "a lot of questionac' He sand insate utWttes un:cn ;

                .             pract:ces that wa-a detnmental,t mmnt nave a proo4em obts.nma ;

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                             $e y smad mvestments. were con-                   other cor .oanies whien could                              y            { 8h"*

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i* ecs were ?'gouses' anc stockhoid-mg Sound Power & Lant Co, the Wa-* i gfy%d%p tre Pugat  ; f.g., ygy . t*y J G yg; i.q g W ers ind some cas(s were p.o Po Co. and ser the C1. the Mantana Portland Ge Power erali !K?t./gW rgy;sW6  :. QG~y.f, >

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The Bentteville Power /- Adm:n:s- lMW@$67 6 mrg to engage a the pracuces of trat:en. in an 2cpare<v mimead- ' 2.M _

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                                  -~he A.P PA arnes (nat Ccq- case.bv.csse basis. the exemo '                                                      f gress passed the :sw for a raw                 :rvs are rot np:Scame to tre i md no leg:s:a.tve exemptio"5                  Northwast 141;s r nvesor .                                               l                                                                 ,-

[s ' hold be ,gran ed [f an admh owrajprnata unlm " ' , try;ve exerrpt.on can't t:e c b- Harvey Spq11, haad of :de i d e ta:ned, the'1 the pnVaie ut.hCes 3 P.A. cv racterwauon N - / l (;en 3r.d ;u .w .J ":a g3rer'ae'** wmply steOuld ha.e 'o C3mply Whi sa d. I can't Terremher w7v i 4

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                                                                                                                                                                                                    .fr rmot the pcvara unhues an ad race fra t0 led and c"*clC t o ice                                                                                                     M tmstrative exempnon from tre                  :f it shou:d N mnd:f.ed :t we !

hNd'PE<ofrp3TJ GU r" ade an e*nr at sor e point w ' In a letter last September to whl try to Corrac* ;L" He 53id ne /# Representative John Din g+ll- tnad tre str.remeat m teval on Ochyt Democrat and chairma t m;or ra!.on frem t*.e S n.C. 2:id o' rhe House sube:mmittee ort ea- some ramerar::y .:rn tr.e uni.t; !' g crTy and power. t'e S E.C. sa.d bnr.ess ' e 1r appears that ore or more of The 3 PA gater ent, par

• af a C tre exisurg pravs'ans of the act ramn on 'te rescra;gwar 61. i ,, p[ ,

333 p. nnom erat :re S E.C. *' g e-provee exemorne authenry to - ' V-tms commission" Js an alter a. "tas racommandas cat Cqress , .,

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this y ear ro Omge:1. the Sx .C. 5 E.C.14 not ta.6e a oos.t.zon on I k re:terstad that pos:t;on althogh whether crest.ng me kmd of c:m- SM..h it mdreated it prefer-ad leg:s:anve p3.iy sou.zat by me prWa:e ut.h- *4 ' .

• aci.co. Des would be m the puccc crer- ;, **

Tn:d to the pr:vate utiLnes' est. pm for a leg statne exempt on Aiet Rad 2n. evacutne d. rec!ce I j

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a t**m the McId.rg Corrpany Act is of the A.P.P A.. sa:d of the pro- I i s

.: #er provision m the regional- pesad legis atn e- exemphon 8 7hara may oe more to th:s than puer bill t'iar would gne :ha  ;

Prcev;11e Power Admestranon mets the eye There is a tre e'd - g yf,,,,p a.u or ry to gua anraa the pur- deus potent.al for acuse " He san.1

he ut inty comramas' efMs 1re ene or s' ectr:cuy km new ut:h. #a.w % !a%y*' .y*,%.m t;. pu .ts, whemer sucuc:y or prb . p1et of a tortome camps.gn o craate som**r2 hie t9s." 8 '3(h .437 e v ':rancel. ./ -

n. Srmme 3 ;o.c tr ownaj but TOLR NORTHW EST . Lt:-s , I -

mutTender:t suo5:d.ar*/ Comp 3D;/ to Wi.d n =w power dants, art C3f*- tr.ad unsuccew:u ; :n the Ns h 3  % g,. ., %

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• 1.nder lanetap tne S c. C. hh. ro a  ;, ,..

g,ct ofjrris ,,tw g cprerea tre f pas _, - - S pyrmoed for (T,e !t*0sl3fne W y,

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• pnon, the private utilities g gg .g 3, _4... g ..

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anuid 9 a5le to for n a jomtcr p p g g , , ,,c,,,; ;,g -3 > y.c g, b cet eeneraung sunsdarv oN. .,.g 3g, g ,,,,y . 37 .;. , p .,, m -f _ ,,,.-*9- -

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                     'F P 1 *{h er Pubhcly or pn-               c $ so N                    eNW FOUR NOP.THWEST utthties
                                                                                                                            ;,e kk
      ,                  By form:ng a jomily owned but                                                                                                    j/;4 'i indenndent. subsidiary compan.,             tnad unsucce%M!y m the 1950s to -                         , Q ? .-                                                                     ,
                                                                                                                                                                                                                                                   .~

to bu.ld new power pl ants, m co4 obtain a levsistt.e esemption -6. gr C'* p - ,

                                                                                                                           !t                        b                                                      J junction with the B.P A.-purchne from the HoWag Company Act m                                                                                          -

authoniy. the private utihties say order to Icrm a jomtly ow ned sub they cuuid ' issue bonds, rat.her s@ary to budd hy4roeieert:c ,;en v f *c..c ?f h./ .

                                                                                                                                                                                                        ;,

than stock. for rnost or a:1 of the eratmg facc.ws In that ' case, a.+*-- { 7 *, r .;; , M..* , g . d*p money needed for construction. C8f? 5"d. the unht.cs sudd hase A Because such bonds would hu, used the power themsenes rather y, .*'. *

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f /f, {i.':*yQ*, ,.y a lower interest rate, the prnate tr.an se.!ang it to tne B P.A. L.. 4 j uti:stics contend they would be The S.E C. orpusai that esemp. y' '?- g .

                                                                                                                                                                                                     <g!

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I* "k  ;' y{;l.. ,..30" - -;* able to sase t9eney and pass the tien, saymg "the corporate organt- ..  ;*

                                                                                                                                                                                                   *                                        '8*<,7 ~

sarmgs on to ratepavers, r.ation. contrei and hirancmg of a g%g*&. ,. Under language the S E.C. has preect of this type create the pos. g. . - g c.- .p *

                                                                                                                                                                                                                                           ,j proposed for the leg:stative es. .tbihty of en:s apmst wh:ch the                                      g.g.(Mg emotion, the private utsht:es              act ts desicne2 to guard." the A.P P.A said m a recent report.

gg, w E- '-".>,. i _ * . 3;Pr:t.t - 47'?VjM.y ,, 7f - ,'v *

                     *ould be abie to form a jomth owned generating subsidiarv ons                 The S E.C said then (nat tne -

e

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                                                                                                                                                                                                                                              ; - ;-

af the sa.e of power would be abse sce of a seg s'amt c .emptien "pnmat":y

• to the B.P.A. would not necessan!y prevent the j}{4-
• y-:.g . , r9 ,gQg.q;f r

                                                                                                                                                                                                                                            .e.     "

s, private-utihty companies from - -

                                                                                                                                                                                                 ;3 ,

THE POWER.THEN would be joining to build hydroeiectr:c distnbu ed throughout t'e -epan . Pfants "except to the cuent that h.T.. p.*

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• g-fq [Q...r to pubhc and pnvate ut;!ines and tu sponws woul undenske compud be with unwillmg to.W y

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   ,                 some indastnal users served by                                     ance

Ho: ding Company.Act, the report , me tE. d, '.:,v . . . -."Cd* ["1glPgh.' ^ U ,

                                                                                                                                                                                                                                              %l ' k the B.P.A.
            ;            One congressional sourcq ques-         said.                 -

g p,;Q '.j,yy,ygg /{* . L Ny'e a tioned uhether the gnvate uuhties \ta cDonald., whc wrote the S.E.C.'s present position papers M . - "N#

                                                                                                                                                         ; QS ' ys.
                                                                                                                                                                                                                                         " jr are seekmg the legislauon as a                                                                        f y.,                                                                                                                   ;

means of removmg themselves on the subject said'he is not fa- .svQ f. ,e- 4 ~.% i J, . 11 3-from dJrect hbehty - through mutar aIth ne pressous.exemp. - &; . . y  ? ' n. formation of a jomtiy owned suo, tion sought by the Northwest pn- *'.g---.-H' ,' ,.

• g-d s: diary - m :he event there are vare utdices - but .he said the ,v .-
• 195rs "were the [nf old days of {;s l.i . . -; #;N, -M; g .

i p*oblems tion m constrter:onororother cf nuclear-power opera . miktancy m the S.E.C.*.' . f. ". W - , geersteg plants. Eth or without a legislatve or - &-

                                                                                                                                                      . ':nwd                                    '\. - U                                            rf John Cary, attorney for Puget administrative exernption, it                                      *y                  +-                                                           A                         0                 3 b.#"r3.i '* <.9<0,./

Sound Power & L:ght, said ".t's would be pombie now for pnvate '-- N' not ready c' ear yet to what extent utlhties to join and fowl an mde-the pnvate ut6t:es mould be r, pandent subsic.ary ccmpany to C' *P- - ph,4 -.- ... spons.bie m the event their subsi- tAtid nuclear or coalfired power "-^ h ~

                                                                                                                                                                      .\                      M .T _ .

• vuM'- -

S.. d.ary had problems.a p: ants. The A.P P A., m a pos:to. pa. But if one or more of the utih- " " " ' - " * '"'-- ' ~ ' ' "

          .         per on the subject, raised a ques-         te could not get aa exempuon. It
          ,         tien about subsid.ary compantes wouid have to comply w'th tre now owned by, pnvate utthries Pubhc Uttury Holdeg Company                                                                                                                                  ,

unich develop and supply fuel, ^Cf-pn naniy coat De Pacific Power and Lg* t .. '-: >. If the pnvate utzhties jom to Co., m partcar, fea-s mae .: p - form a generateg st.bsid ary and -wouid hase ro diest some of :ts

                                                                                                                                                                                      'g                        g M g.

decide to build a coabfired gener. hoiings m that case, MacDonald s. q _, , , , , ' .,'- Umg p: ant, it is hkely the coal . said - would come from one or more of Cary said the basic problem the subsid; anes owned by the wh forming a boideg company same pnvate utmt es. Cary said. is "the persraswe smem of regu- .,', - , The:AP.P.A. said "there is a .!ation by the S E.C." He said a > ' 2i

                                                                                                                              /a                                                                          n l ' clear pccential for excessive secondary considerstmn is wheth-t , charges to consumers resultmg er any of - the pnvate utdties                                                     .i'j i                              i
                                                                                                                                                                                                      ,J.[,

9. - ,  : ['b "?

from; arrangements between tr.e wouid hase to cvest themse:ses Lt.E . f coal subsic. anes' of the . Pacific c of any triterests ;ri order to comp.y . , -,,. I.g;.' f . , f- T .KJ ' .

                  ' Northwest (utihties) and their with the act. 9 7 *. - -                                                 &j 3,,,
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        ; proposed generateg subs:d: anes:.' 4 Cary and NacDonaid both said' /8di-                                                                        i  W '                                ST~                                              3/
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i -"It is thts tge of*trar.saction, they are convinced there would be - % *

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alorg with the potennal for.large adequate protect;on ur. der erst '

                                                                                                                       ' '. .. f'.'*4..
                                                                                                                                                           *,'gi.    . ej holdmgEcompanies to dommate . .irig law and through the proposed Whe energy field.shich tre Pubhc .le;;:s ative exempaon to' protect

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                                                                                                                                                                                                      .Q                        '"
                                                                                                                                                                                                                                       , .(* 7            "
       *        ' Ut:hty Holdeg Company Act was cor.samers and stockho;ders m the                                          p                                                                                                                          -

1 designed to address and prevent'- Nor**est. -

                                                                                                                                                                                                                                                     .s
                                                                                                                                                                                                                                                    */

6 Car). said any such transacnons The A.P.P.A. dispu..te.s C.at con-8

• r "EDERICK G ELS,CN '.

     .l,           be: ween a coal subsdary and a
       , .. generatang subsidiary could be
                                                             'm'          '   , %

5 ' g g p;,,," g~ , nease send ra e m Pe d:oin4 p' cot}} i '* scrutnued m- rate reviews by Apubl[c.employe stare utihties commissions and the fb -m- CN- W lm -' lp*-

• l j

      .           $'hEnergy RegWatory Com- IOCders to meet                                                                                                        % l Seg !                                                            H                   :i A threa. day regio .al ;e3de ship                            .
                                                                                                                                                                                              ~rg                                      'C Q' '.I
      ,                la the case of the Northwest                         '#'                   ##

I l i pnvate dukties te Hofdeg Com-

      ! pany Act ec u huid arply if t.ev                              "                 #I E DC"                    '

l uere to acqwre O per cent o'r

                                                  ~                                        "'""*                                                       ' ' - - ~ ~ '                                                                               --
      * - rncre of the stocx in another unh.                      I                 *                        #     l                   <\d -                   " ' ' ' ^                              ~~                                      "*

I ty company, such as the jomity "* " * * " " = "i l owned generat:ng subsid;ary they d-at of E,tre Canadan Unicn ,?i C J )- N.-- a w' .

• are proposmg.-
• Pt.bbc mployas, will sp.e

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of l ( )ppe ! &-M f4 s C m-

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w - m o. - ,.,,, %. ,ae Acct _ S .

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                       ^

q, (V, alt Evans is on jury duty. c - l_

                            ' ~ His column will resume Sunday.)

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UNITED STATES OF AMERICA ' NUCLEAR REGULATORY COMMISSION \ <7 v/'f x /7 .---:

                                                               -   ?    ;,
                                                                           , .J BEFORE THE ATOMIC SAFETY AND LICENSING APPEAL BOARD'            -

In the Matter of )

                                 )

PUGET SOUND POWER & LIGHT ) DOCKET NOS. STN 50-522 COMP ANY , et al., ) 50-523

                                 )
                                 )

(Skagit Nuclear Power Project, ) Units 1 and 2) )

                                 )
                                 )

CERTIFICATE OF SERVICE I hereby certify that copies of: INTERROGATORIES AND REQUESTS FOR PRODUCTION TO PUGET SOUND POWER AND LIGHT CO. AND OTHER APPLICANTS dated June 25, 1979, have been served on the following by depositing the same in the United States mail, postage prepaid, on this 25th day of June, 1979. Valentine B . Deale , Esq. , Chairman Alan _ S . Rosenthal, Chairman Atomic Safety and Licensing Board Atomic Safety anc Licensing U.S. Nuclear Regulatory Appeal Board Commission U.S. Nuclear Regulatory Commissio 1001 Connecticut Avenue N .W. Wash ington, D .C. 20055 Washington, D.C. 20036 Dr. J ohn H . Buck, Member Dr. Frank F. Hooper, Member Atomic Safety and Licensing Atomic Safety and Licensing Board Appeal Board , School of Natural Resources U.S. Nuclear Regulatory Commi'ssio University of Michigan Washington, D.C. 20555 Ann Arbor, MI. 48104 Michael C. Farrar, Member Gustave A. Linenberger, Member Atomic Safety and Licensing Atomic Safety and Licensing Board Appeal Board U.S . Nuclear Regulatory U.S. Nuclear Regulatory Commissio Commission Washington, D .C. 20555 Washington, D .C. 20555 Certificate - 2027 047

Docketing and Service Section Canadian Consulate General Office of the Secretary Peter A. van Brakel U.S. Nuclear Regulatory Vice-Consul Commission 412 Plaza 600 Washington, D.C. 20555 6th and Stewart S treet Seattle, Washington 98101 Richard L. Black, Esq. Counsel f or NRC Staf f F. Theodore Thomsen U.S. Nuclear Regulatory P e rk ins , Coie, Stone, Olsen Commission & Williams Of fice of the Executive Legal 1900 Washington Building Director Seattle, Washington 98101 Washington, D, C. 20555 Alan P. O' Kelly Nicholas D. Lewis, Chairman Paine, Lowe, Coffin, Herman Energy Facility Site Evaluation & O' Kelly Council 1400 Washington Trust Financial 820 East Fif th Avenue Center Oly rpia, Washington 98504 Spokane, Washington 99204 Robert C. Schofield, D irer. tor Russel W. Busch Skagit County Planning D part- Eve 1 green Legal Services ment 520 Smith Tower 120 West Kincaid S treet Seattle, Washington 98104 M t.Vernon , Washington 98273 Richard M. Sandvik, Esq., Assistant Attorney General Department of Justice 500 Pacific Building 520 S. W. Y amhill Portland, Oregon 97204 Robert Lowenstein, Esq. Lowenstein, Newman, Reis & Axeirad 1025 Connecticut Avenue, N.N. Washignton, D.C. 20036 H. H. Phillips, Esq. Vice President and Corporate Counsel Portland General Electric ->. Company DATED: / 121 S.W. Salmon S treet / Portland, Oregon 97204 ROGER M. LEED f

                                                                               /'

7 {_  ;/ - CFSP and FOB ',.,, ,L m E. Stachon &L. Marbet ,By -~ 19142 S. Bakers Ferry Road M i-ch ael W . G endle r Boring, Oregon 97009 Certificate - 2 2027 048}}