ML19321B336

Responds to 800708 Request for Info Re 800630 Memorandum & Order.Discusses Sc Electric & Gas Co Competitive Relationship W/Central Electric Power Cooperative,Inc. Correspondence Encl

ML19321B336
Person / Time
Site:	Summer
Issue date:	07/28/1980
From:	Conner T CONNER, MOORE & CORBER
To:	Chanania F NRC OFFICE OF THE EXECUTIVE LEGAL DIRECTOR (OELD)
References
ISSUANCES-A, NUDOCS 8007310424
Download: ML19321B336 (7)

Text

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I.AW OITICES CONNER & MOORE 1747 PENNSrLTANIA AVENLT., N. W.

Tror a. coxxza. JR. WASHINGTON. D. C. 20008 ARCH A. MOoRA J1L' MARK J. WETTzRNA MN **

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Fredric D. Chanania, Esq. usggg Counsel for the Nuclear Regulatory 2 Cormnission Staf f Office of the Exec"tive Legal P' S}dNg,g '

Otfice of the Secrehty Director co;tctir.: & senice /g U. S. Nuclear Regulatory Commission y

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Washington, D.C. 20555 N In the Matter of South Carolina Electric & Gas Company (Virgil C. St=tmer Nuclear Station)

Docket No. 50-395A Dear Mr. Chanania This will respond to your letter of July 8, 1980 to i

George H. Fischer, Esq., South Carolina Electric & Gas Company ("SCE&G"), requesting certain information in order

• to assist the Staff in making its response to the Merorandum and Order dated June 30, 1980 in this proceeding.

Following the formal advice from the Attorney General to the NRC on March 31, 1972 and the issuance of the con-struction permit for the Summer facility, SCE&G did not have anir discussions with Central regarding joint cwnership of  ;

(or other means of access to) generation and transmission '

' facilities with Central until . 77 when Central was granted leave to intervene in the Saluda Hydroelectric proceeding before the Federal Power Ccamission, Project 516, a case entirely unrelated to the St:mmer proceeding. Thereafter, as shown from the attached correspondence, SCE&G and Central discussed joint ownership and wheeling to some extent over the next three years. Ecwever, no offer resulted from these discussions.

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Fredric D. Chanania, Esq.

July 28, 1980 Page 2 f

1. As to events since January 1979, Central and SCE&G have discussed these matters in person only twice, on May 1, 1979 and in early 1980. However, as indicated from the attached correspondence dated May 4, May 15, June 12 and June 19, 1979, between Central and SCE&G, Central states that joint ownarship in a fossil-fuel plant, to be operational '

in the mid-1980's, is not a proper solution to the isolated load now served by SCE&G on its Berkely Electric Cooperative system. Instead, it has requested that SCE&G consider a wheeling arrangement for power Central would obtain from Santee Cooper and furnish to Berkeley Electric (a constituent of Central) . This point was.most recently discus 2ad between SCE&G and Central, but only briefly, at a meeting in early 1980. There has been no other meeting between SCE&G and Central on these points. */ Wheeling for Berkeley Cooperative has been the only specific transmission service discussed by Central. Prior to 1977, Central had made no request to SCE&G that it wheel power to any of Central's constituents.

2. There has been no request by Central to SCE&G for access to the Virgil C. Summer Nuclear Station.

,' 3. There has been no discussion concerning the pos-sibility of a merger between SCE&G and Central.

With regard to your question as to any changes in our 1980-1990 projections for annual peak loads, generation and transmission plans, and other power supply sources, there -

have been the following changes.

SCE&G has determined that it will retain rather than retire 131.MWe of oil units previously scheduled for retire-f ment in 1980 (see Table 7.3, Draft Environmental Statement

-- */ Central attended a settlement negotiation session between'Ncrth Carolina Electric Membership Corporation l and SCE&G on January 28, 1980, which pertained to an unrelated judicial proceeding entitled North Carolina ,

l Electric Membership Corporation, et al. v. Carolina

-Power & Light Co., et al., No. C-77-396-G (M.D.N.C.). l Counsel for plaintiffs is also counsel for Central in i the present proceeding. However, neither Central i

nor any of its constituents is a party to that action.

SCE&G took the position that Central's contentions in the NRC case should not be discussed at a meeting

concerning issues in the NCEMC Federal court case.

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- Fr:dric D. Chanania, Esq.

. July 28, 1980 Page 3 (operating license stage), Virgil C. Summer Nuclea: Station, NUREG-0534, June 1979). This unit will continue to be used for peak power. Further, SCE&G now plans to construct a 100 MWe and a 200 MWe oil unit to be operational in 1985 and 1986, respectively, also for peak power use. Finally, the new 500 MWe coal unit scheduled for opcration in 1985 (see .

Table 7.3, DES) is now scheduled for c;eration in 1987. The above plan for installation of genera cing capacity is subject to change as may be determined from revised forecasts.

There have been no changes in SCE&G's competitive re-lationship with Central and Santee Cooper since December 1978. Only one development has occurred at all, but with no competitive significance. On September 4, 1973, SCE&G signed a wholesale electric power supply agreement with Berkeley Electric Cooperative. On February 6, 1979, SCE&G consen :ed to an assignment of its agreement with Ber'.aley to Central. The assignment was approved by the REA Administrator on July 12, 1979, and will shortly be filed with FERC.

Since SCE&G will supply Central with the bulk power for transmission to Berkeley, the assignment will only change the mode of billing to Berkeley and will not affect the competitive position of SCE&G and Central.

We shortly will forward a copy of the Annual Report as requested under separate cover.

Sincerely, ,

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Tro B- nner, Jr.

U Counsel for Applicant Enclosures cc: Per Service List-l i

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CentfC 6GCtric POUJOf COOpOfotiVO, nC.

P. O. Box 1455 /121 Greyst:ne Sou!evard/Cc!urca. S C. 29202/(603) 779 4375 [rc:u" e'" .

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June 19,1979 usp0

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Othee of the Secretary Do:ketis! & Senice p Mr. T. C. Nichols, Jr. T W Vice President and Group E3ecutive g .,-

Power Production and System Operations N South Carolina Electric & Gas Company Post Office Box 764 Columbia, South Carolina 29218' Cear Tom:

After reading ycur letter of June 12, 1979 I guess that rather than misunderstanding, the problem is probably cor=unication on ny part.

hith regard to joint ownership in future plants, we said that vie did not feel that joint ownership in a mid-1980 plant was a proper solu-tion to the isolated load now served by SCE&G on the Berkeley Electric Cooperative system. Ue indicated a desire to intergrate this load into the larger "entral load and asked that you consider acccmplishing this through a wc231ing arrangement. '

We indicated that Central would be recep-ive to any proposal to joint ownership in a future plant of SCE&G and we suggested that you consider some capacity larger than proposed for the Berkeley Electric Cooperative isolated load. Central is currently reviewing its power supply options i

after 1987 and in this regard, we are currently working with Santee  !

Cooper as well as talking to Carolina Power & l.ight and you.

I apologize if we have caused you any confusion and we will appreciate your consideration in these matters.

Very truly yours,

/

P. T. en Executive Vice President and General Manager cc: Mr. G. H. Fischer Mr. C. Pinckney Roberts Rccert W WJ5ams, Jr. Jchn C. Anderson Ectert 9. Aw::.ey p. 7, gen 0*o C N *

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....n,........... June 12, 1979 .

Central Electric Power Cooperative, Inc.

Post Office Box 1455 121 Greystone Boulevard Columbia, South Carolina 29202

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Attention: Mr. P. T. Allen #

Executive Vice Pr'esident and General Manager ,

Dear Pat:

Your letter of May 15, 1979 indicated a possible mis-understanding concerning the discussions at our May 1 meeting.

We discussed a specific proposal at this meeting relating to an SCE&G fossil-fired plant in the mid-1980's. You stated that CEPC0 had. no present interest in joint ownership of that plant.

A specific wheeling-type arrangement relating to Johns Island was also discussed and we informed you that this regt:est would be considered. 'I' am not aware of any other specific requests made at .

this meeting by CEPCO to SCE&G.

Pat, if you feel that you made some other special request that we should be considering other than that mentioned in my letter, please let me know.

Again, it was a pleasure for George and I to meet with you and Pinckney to discuss this important matter.

Sincerely ,

. fb h,/j T. C . Ni chol s , Jr.

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May 15,1979 Mr. Tom Nichols S. C. Electric & Gas Com1lany Post Office Box 764 ,

Columbia, South Carolina 29218

Dear Tom:

After read'ing your letter of May 4,1979, I realize that there may be some misunderstanding.

You have correctly stated Central's position with regard to the isolated small load now served by SCE&G on the Serkeley Electric system. We feel that this isolated load must be eventually inte-grated into the Central total load for best economics and that to purchase capacity without future ability to integrate that capacity wculd be to perpetuate the problem. We are however very much inter-ested in joint ownership, and other utility relationships with regard to the total Central system. Central is currently striving .

to provide for its electrical load requirements after the year 1987 ,

and to this end wishes to continue requests for joint ownership, wheeling, reserve sharing, etc. , whereby Central can provide for its member needs. As you know we must act now to provide for 1987 re-quirements.

He urge that you consider the Berkeley isolated load en a special or interim basis and that you give real consideration to the broader power supply problems.

Verv truly yours, /

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M P. T. Allen Executive Vice President and General Manager sbd Rcte t W Wmams. Jr. !chn C. Anderson R::ert S. Awerey P. T. Allen aesce,r v.ce nescow seve ser roe.sse ter:s,.e ver noseer Osm $ c Swwer SC twe9x.M S C eM Cenese Mmer

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May 4, 1979 Central Electric Power Cooperative, Inc.

Post Office Box 1455 121 GreystonefBoulevard Columbia, South Carolina 29202 ,

Attention: Mr. P. T. Allen Executive Vice President and General

• Manager ,

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Dear pat:

' George Fischer and I enjoyed meeting with you and Pinckney Roberts on May 1,1979 to discuss CE?CO's response to the document presented to you on January 5, 1979.

Ye- stated that presently CEPCO did not consider joint ownership in an SCELG fossil-fired plant in the mid 1980's to be economically advantageous.

This decision was based largely on the relatively sma'.1 percentage'of generation that would be required to serve CEpCO's load located on our system and other arrangements that CEpCO was pursuing at this time to provide a future power source for its customers. You indicated that CEpCO's action on this matter, at the present time, did not preclude the possibility of a renewed interest in such a relationship sometime in the future.

It 17as requested at the meeting that the Co pany consider a wheeling-type arrangement to supply Berkeley Electric Cooperative located on Johns Island commencing around Septe=ber, 19S3 when the contract with us expires. . .

Your request concerning this important ma Nter is being reviewed.

Sincerely,

, {s s - < 1 T. C. Nichols , Jr.

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cc - Mr. George H. Fischer bec: Mr. G. C. Meetne

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