ML17266A428

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Petition to Intervene & Request for Hearing.Commission Should Hold Limited Antitrust Hearing.Certificate of Svc Encl
ML17266A428
Person / Time
Site: Saint Lucie NextEra Energy icon.png
Issue date: 04/07/1981
From: GARY M, KUCIK G, SWARD E E
ARENT, FOX, KINTNER, PLOTKIN & KAHN, PARSONS & WHITTEMORE
To:
NRC COMMISSION (OCM)
Shared Package
ML17266A429 List:
References
NUDOCS 8104090669
Download: ML17266A428 (16)


Text

UNITEDSTATESOFAMERICANUCLEARREGULATORY COiP'ISSION IntheiiatterofFLORIDAPOWER&LIGHTCOt&3QW(St.LuciePlant,UnitNo.2)DocketNo.50-389PETITIONFORLEAVETOINTERVENE ANDREQUSTFORHEARINGPursuantto10CFR52.714andtheCommission's March9,1981,noticeoreceiptofanapplication fromFloridaPower&LightCompany(FP&L)forafacilityoperating license,46Fed.Reg.15831,Parsons&Whittemore, Inc.(P&W)anditssubsidiary, Resources Recovery(DadeCounty),Inc.(RRD),jointlypetitionforleavetointervene inthisproceeding andrecuesttheCommission toholdalimitedantitrust hearing,asdescribed below,onFP&L'sapplication.

Thegroundsforthispetitionandreauestaresetforthbelowandsomeofthemareelaborated uponintheaccompanying brief.IDENTIYOFPETITIONERS (1)P&WisaNewYorkcorporation engagedinavarietyofindust'alactivities intheUnitedStatesandthroughout theworld.Oneofweactivities inwhichP&Wand itssubsidiaries areengagedistheconstruction andoperation.-:,

-.offacilities forprocessing solidwaste.(2)RRDisaDelawarecorporation thatiswhollyownedbyP&W.RRDhasrecentlycompleted the'coKstruction ofasolidwasteprocessing facilityinDadeCounty,Florida.Itisanticipated thatthefacilitywillprocessupto18,000tonsofsolidwasteperweek,convertcombustible materials intorefuse-derived fuel,burnthefueltoraisesteam,andgenerateelectricity.

Thefacilityhasaninstalled nameplate electricgeneration capacityofapproximately 76megawatts.

Itisaaualifying smallpowerproduction zacilitywithinthemeaningozSection201ofthePublicUtilityRegulatory PoliciesActof1978(PURPA),16U.S.C.5796,andtheimplementing regulations, 18CFRPart292(1980).INTERESTQFPETITIONERS INTHISPROCEEDING (3)Petitioners seektointervene inthisproceeding toprotecttheirrightsandther'ghtsosimilarly situatedentitiesunderPURPA,thefederalantitrust lawsandSection105coftheAtomicEnergyAct,asamended,42U.S;C.52135(c).ItisPetitioners'ontention thatifFPaLispermitted tooperateSt.LuciePlant,UnitNo.2,underthetermsoftheproposedSettlement Agreement pendinginNRCDocketNo.50-389A,

particularly SectionXrelatingtotransmiss'on

services, theeffectuation ofanimportant aspectoffederalenergypolicyasreflected inPURPAmaybefrustrated anda"situation incon--sistentwiththeantitrust laws"maybecreatedormaintained.

42U.S.C.52135{c)(5).{5)Petitioners willbedirectlyimpactedbytheabove-described conseauences ofimplementing SectionZoftheproposedSettlement Agreement.

RRDhascompliedwiththerequirements ofPURPAandhastakenthenecessary stepsto,secure thebenefitstowhichitisentitled.

Ontriarch13,1981RRDnotifiedtheFederalEnergyRegulatory Commission (FERC)thatitisaQualified FaciliyundertheAct.AcopyofthatnoticewasservedthesamedayonFP&LwithacoveringletterinormingFP&LthatRRD"willbeginsalesofelectricenergytoFloridaPower&Lightonorafterninetydaysfromthedatehereof."(LettertoRobertTalionofFP&LfromGeorgeE.BoyhanofRRD;AppendixA).(6)RWhasalsosought"toexplorecompetitive opportunities forsalestootherelectricutilityentities."

Tothatend,RRDwroteFP&LonApril3,1981andaskedittoconfirmthatFP&L"villtransmitelectricity inbehalfofRRDtopoten-tialcustomers otherthanFP&L."Asauthority forreauiring FP&LtoprovideRRDwithtransmission

services, RRDcitedtheantitrust lawsandtheproposedSettlement Agreement.

SeeLette-fromDavidBardin,CounselforP&WandRRD,toL.Christian Hauck,FP&L'sVicePresident, LegalAffairs{Appendix B).

(7)Asdescribed morefullybelow=an<.'-n Petitioners'ccompanying brief,SectionXotheproposed.

Settlement Agreement affectsPetitoners'bility tosecure.rtsfull.-rightsunderPURPAandtogainaccesstoFPGL'.s.-.transmission gridso'cancompetewithFPaLinthesale.ofelectricpower.Totheextentthattheoperating licensesoughtbyFP&Linthisproceeding incorporates SectionX,Petitioners willbedirectlyanddetrimentally affected.

POTENTIAL EFFECTSOFTHISPROCEEDING ONPZTITIONEPS'NTERESTS A.EffectsonPetitioners'URPA rights.(8)SectionXoftheSettlement Agreement, forthefirsttimeinanNRClicensing proceeding, pu"portstoconferbenefitsonQualifying Facilities withinthemeaningofPURPA.Inreality,thosebenefitsmaybeentirelyillusory; indeed,SectionXmayevenrequireRRDandotherQualifying Fac'1'ties toabandonvaluablePUPZArightstobenefitfromthetransmission servicesaffordedbySectionX.(9)Section210ofPURPAseekstoencourage co-genera-tionandsmallpowerproduction.

Itdoessobyconferring uponQualifying Facilities therighttoselltheirelecticaloutputtoanelectricutility,tointerconnect withautil'yandtobuyatretailfromtheutilityelectricpowerneededwithinthefacility.

Theimplementing regulations exemptQualified

=acilities rommostutility-type regulations toencourage

competitive entrybyindustrial concernsintothegeneration business.

CongressenactedthesePKVAprovisi.ons.

toovercomethereluctance ofelectrical utilities todobusinesswith.suchQualifying Facilities onaneconomically viab3.ebasis.One.oftheimportant effectsofPURPAisthefacilitation and.encourage-4/mentofcompetition fromnewelectrical powersources,.

(10)SectionXappearstoadvancethepr'nciples summarized inparagraph (9)abovebyrequiring FP&Ltotransmitpower"(5)fromanyqualifying cogeneration facilityorsmallpowerproduction facil'y(asdefinedbytheFederalEnergyRegulatory Commission in1SCFRPart292,SubpartB)withwhichCompanyisinterconnected toaneighboring entityorneighboring distribution system,..."Thatcommitment totransmitpower,however,isconditioned uponaQualifying Facility's forfeiture ofvaluablerightsunderPURPA.Speciically,underSectionZ(a)(5)theQualifying Facilitymustarrangetorece'veanysalesofbackuppowerandmaintenance powerfromtheneighboring entityorneighboring distribution systemtowhichtransmission servicesareprovided.

Thatcondition wouldforceRRDandotherQualifying Facilities toabandontheirrighttosellalloftheirelectricpoweratthebuyer'savoidedcosts,underthe"/Severalprovisions ofPURPAhavebeenrecentlyhelduncon-stitutional byJudgeHaroldCoxoftheUnitedStatesDistrictCourtfortheSouthernDistrictofMississippi, Mississiaoi v.PERE,Civ.ActionNo.J79-02212(c),

(Peb.19,991Petiioners'ounsel havebeeninformedthat&eSolicitor GeneralintendstoappealthatdecisiondirectlytotheSupremeCourt.

termsofPURPAandtobuyatretailfromFP&Lig:accoraance.

Iwiththe3.atter's ob3.igations toprovideallof;theenergy-neededbytheQualifying Facilities.

{11)Byplacingrestictionsontheprovision oftransmission servicestoQualifying Facilitieswhichdonotapplyto"neighboring entities,"

SectionXunfairlyandunrea-sonablydiscriminates againstQualifying Fac'lities.

AlthoughPetitioners believethattheRRDfacilityinDade-County iqbothaQualifying Facilityanda"neighboring entity-,'-'anguage ofsubsection X(a)(5)mightbeconstrued byFP&Lasdiminishing rightsthathadbeenconferred bytheothersubsections.

(12)Subsection

{b)oSectionXintroduces afurtherrestriction oftherightsconferred onneighboring entitiesandQualifying Facilities.

Thatprovision statesthat"Nothinginthislicenseshall.beconstrued torequireCompanytowheepowerandenergytoorfromaretailcustomer.

Althouhtheg'1restriction shou3.dbeinterpreted onlyasalimitonretaicustomers whicharenotinthegeneratio nbusiness, aclar'i-cationormodification tothiseffectisessentia3.

toassurethattheprovisowillnotforceaQualifying

Facility, exercising itsrighttopurchasee3.ectxicity atretail,tocutatsel~offfromtheneededtransmission sexvices.

B.Antitrust Effects(13)FP&Lpossesses monopolistic contxoloveolovertheandeasternprovision ozran"ransmission servicesinsouthernFior'a.

(14)SectionXoftheSettlement Agreement

-issowrittenastoaffordFP&Lunreasonable opportunities-

-toconstrue-.:theprovisions contained thereininaway.Matwould.defeat.theirprocompetitive objective, therebymaintaining FP&L'monopoly.

powerovertransmission services.

(15)Theunreasonable andunfairdiscrimination betweenQualifying Facilities andothergenerators ofelectricity described inparagraph (13.)above,wouldplacePetitioners andothersimilarly situatedentitiesatacompetitive disadvantage.

(16)Subsect'on Z(a)oftheSettlement Agreement, particularly conditions (3),(4),and(5),giveFP&Lexcessive discretionary latitudeindenyingPetitioners andothersimilarly situatedentitiesaccesstoFP&L'stransmission grid,therebyPenablingFP&LtopreventPetitioners andothersfromsellingtheirgenerated electricity tomunicipal utilities.

(17)Theeffectsdescribed inparagraphs (13)through(16)abovearemorefullyanalyzedintheaccompanying brief.TheysupportPetitioners'ontention thatimplementation oftheSettlement Agreement aswrittenwouldsignificantly changeFP&L'sactivities andproposedactivities withinthemeaningofSection105coftheAtomicEnergyAct,asamended,42U.S.C.52135(c)(2),requiring theCommission toholdanantitrust hearingatthistime.Thesenewanticompetitive activities areparticularly invidious since,onceapproved,,

theywillappeartohavethesanctionofNRCandtheJusticeDepartment.

Thatfactcoupled withthesuperficial impetustocompetition affordedbythe':--.SectionXtransmission provisions makeitcriticalthat-the-.;

positionofQualifying Facilities underPKUA.-betakenintoaccountbeforetheoperating licenseissues.NATUREOFPETITIONERS'IGHTS UNDERTMATONICENERGYACTTOINTERVENE (18)Petitioners areentitledtointervene inth'sproceeding pursuanttoSections105cand189oftheAtomicEnergyAct,asamended,42U.S.C.552135(c),2239.Section.189statesthat"theComm'ssion shallgrantahearingupontherequestofanypersonwhoseinterestmaybeaffectedbytheproceeding, andshalladmitanysuchpersonasapartytosuchproceeding."

Asdescribed inparagraphs (8)to(17)above,Petitioners'UR?A rightsandtheircompetitive interests w'lbedirectlyimpactedbytheissuanceofanoperating facil'ylicensecontaining, orsubjectto,theconditions oftheSett'e-mentAgreement.

Therefore, theyshouldbepermitted tointer-veneandbeheardtoprotectthoserightsandinterests andthe*/rightsandinterests ofothersimilarly situatedentities.

(19)Section105coftheAtomicEnergyActprovidesanadditional statutory basisforintervening andseekinga~/ThestaffoftheFloridaPublicServiceCommission hasestimated thattheFloridacapacityforQualifying Facilityprojectsapproaches 2700megawatts.

lissues.Thatsectionrequiresthatanhearingontheantitrustissues.4ldattheoperat'ng licensestageifantitrust reviewbe.ea'nthelicensee's activities orproposed"s'gnificant changesineicei~~ttothepreviousrevaewyactivatzes haveoccurredsubsequen oconnection wit.t:heCommission

...inconnthAttorneyGeneralandthee~~~efacil'ty."

Thesignifacan theconstruction permitforthefaci'.tbFPSL'sintendedamplemmentation ofthechangesbroughtaboutydtheireffectsuponPetitioners, asSettlement Agreement andtheareehs(13)to(17aove7)bveandintheaccompany-described inparagzaptheriht-toint:ervene fortheingbrae,gib'ivePetitioners therigananaandparticipating in,tblishingtheneedfor,anpurposeofesait:reviewunderSection105c.secondantitrusrSOFPROCEEDING ASTORFICHSHTOINTERVENE PETITIONERS NIektointervene intheinstant(20)Petitioners seektoanervtingtheLicensing thelimitedpurposeofassasiroceeding foreipuatefullytheconsequences ofBoardandethCommission toevaluatefuyseent.InsedSettlement Agreement.

'onXoftheproposeeimplementing SectitoJeheardastoSectionZ'articuar,tonthee-p1Petitioners wishtoJeeartonthePUP>Arightsandcomp-tialldetrimental impactonthefPetitioners andothethersimaarytitiveinterests oeQualifying Facilities.

notbelievethatatrial-type

{21)Petitioners donoteiev"h~ing1reuiredhere.Theyare"h~ingisnecessari yreqantitrust hearing

10preparedtoaccepttherecordasdeveloped todate,andwouldnotaskthatitbereopened.

Petitioners seek.onlytosupple-mentthat.record,inanymannertheCommission deemsappropriate, topresenttheirevidencetotheCommission and-toarguetheir.positionbaseduponthesupplemented record..Petitioners'.

evidencewillincludePP&L'sanswerto,,thelettermarkedas'ppendixB,whichtheyhaverequested byApril17.(22)Astheaccompanying brief'pointsout,Petitioners'URPA rightsareinterrelated withtheir'ntitrust concerns.

ThePURPAr'hts,however,canbe.separately considered andprotected withoutanantitrust hearing,iftheCommission issoinclined.

OneofPetitioners'ontributions asintervenors willbetodemonstrate theinconsistencies betweentheSettlement Agreement andtherightsaffordedbyPURPA.(23)SincePetitioners'nterest intheproceeding islimitedtoSectionXoftheAgreement, theirrigntscouldbeeasilyandefficiently protected withoutunduedelayinthe'ssuanceofZP&L'soperating license.

11-CONCLUSXON Thispetitiontointervene shouldbegranted,andanorderallowingintervention shouldbeentered.Alimitedanti-N*trusthearing,asdescribed above,alsoshouldbeordered.Respectfully submitted, GeorgeR.KuciNarcGaryE3.len.SwardArent,Pox,Kintner,Plotkin6Kahn1815HStreet,N.N.washington, D.C.20006(202)857-6000April7,3.983.CounselforPetitioners