ML19338C004

Supplemental Response to Intervenors' Interrogatories. Scheduled Meeting Changed to 780208 & 09 in Jackson,Mi. Meeting Summary Rept & Certificate of Svc Encl

ML19338C004
Person / Time
Site:	Midland
Issue date:	02/10/1978
From:	Deline D, Howell S CONSUMERS ENERGY CO. (FORMERLY CONSUMERS POWER CO.), DOW CHEMICAL CO.
To:
References
NUDOCS 8007291155
Download: ML19338C004 (9)

Text

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RELLTED CORRESto::DC' CE h

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NUCLEAR REGULATCEY CCE4ISSICH , ' /d.i 3 .g Before the Atomic-Safety and Licensin Board

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In the Matter -of ')

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CONSUMERS POWER CCMPANY.  :). Docket Hos. 50-329

.(Midland Plant,. Units 1 and 2)

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SUPPLDENTAL RESPONSE OF CONSUE!.S POWER CO:GANY AHD THE DOW CHEMICAL COMPANY TO IHTERECGATCRIES OF ILn.nVENORS OTHER THAN DOW

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-Consu=ers Power Company (" Licensee") and The Dev Chemical Company ('"Dov")  ;

submit the following supplemental answer to th t portica of Intervenors' other f I

than Dov ("Intervenors") Interrogatory No.1 related to the status of neSotia-

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tions.between Licensee and Dov. Intervenors' Interrogatory was directed to

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both Licensee and Dov.

QUESTION

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l. Tes;imony in this proceeding thus far has indicated a dispute between

- Consumers and Dow Cfenical Company (Dov) relating to the construction of the

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Midland Nuclear Facility and sale and purchase 'of stes.s and electricity frc=

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said facility.- All or a portion of.the Dov-Consu=ers' contracts have been

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lidentified or attached in written .testitony of Censumers? vitnesses in- this  !

' proceeding,; Messrs. Keeley and Howell. With respect to:any dispute concerning

.such contracts between Consumers and-Dov please state the following:

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-(a) Describe in' detail the nature of the dispute and the utatus of_ any negotiations to resolve said dispute. .If it is

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your position that no dispute exists, please state .the basis I l

1 i therefor' in light of w,he cross-examination testi=ony of Dov l

- vitness Temple, including but not 14mited to the disclosures -1

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made by Mr Temple of meeting htveen Consumers and Dov and :j t their representatives in September, 1976 vherein suggestions l I

of lawsuits were made, as well as correspondence between l w

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. l Youngdahl and Temple during 1975 and 1976 which has already i been produced by Consu=ers.

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ANSWER.

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- In accordance vit.h the' schedule provided with the earlier Supplenental  !

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. 1 Interrogatory Response dated January 20,-19T8, the meeting scheduled for i February 9 'in Midland was changed to February 8 and 9 in Jacksen. Attached to this Response as Exhibit "A" is a su==ary report of that =eeting.

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Stephe:1 H. Eovell, Vice President-Projects, Engineering and Construction Consumers Pover Company

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• Nb e D. Dick DeLine Manufactu2 !ng Manager 1

Michigan Division-Dov Chemical U.S.A.

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- Stephen'E. Howell,'being' duly svorn, deposes and says that the foregoing.

2 Supplemental Response of Consumers Power Company and .The Dov Chemical Co=pany

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'to Int'errogatories of Intervenors Other than Dowiis true to' the best of his' knowledge and belief. - c a

% O c~5Ci , M C Stephe.n H..Howel1 STATE Of MICHIGAN )

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} COUNTYOF-JACKSON-)

Subscribed and sworn to before me, a Notary Public, this 9th day

of February,1978.

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Mennie K. Miller, Notaryfublic

- Midland Ccunty, Michigan, acting' in Jackson County, Michigan ,,

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My Commission Expices: '

-Aun. gust 16,s 1981

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D. Dick DeLine..being duly sworn, deposes and says that the fo Supplemental. Response of Consumers Power Company and The.Dow C

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Company to Interrogatories of Intervenors Other thsn Dow is true to tile4 best of his knowledge and-_ belief.

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b. b,d /Y, u D.- Difk DeLine

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STATE OF MICHICAN-)

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COUNTY OF JACKSON')

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Subscribed and sworn to before me, a Notary Public, this 9th day

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~Conni~e K. Miller,', Notary 4'ublic i.

Midland _ County, Michigan, acting in Jackson Countyi Michigar.... .'

My Commission Expirds: August 16,/ ;1981

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, CONSUMERS POWER-DOW REOPENED' NEGOTIATIONS 3 EE31313N >-, j

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-Date of Meeting: February 8 and 9,1978 @  %/

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Subject:

-Minutes of Nuclear Contracts Negotiation M at ' Jackson, Michigan Present: The.Dow Chemical Ccmpany: DDDeLine, LWPribila, JRBurrougi r Consumers Power Company: SHHowell, LBlindemer, CSKeeley

• Present as Drafting Committee and for occasional consulta-tion:

The Dow Chemical Company

PDConner Consumers Power-Company: JLBacon, WAKirkby Present as Technical Committee and for occasional consulta-tion on February 8, 1978:

The Dow Chemical-Company: JLSchick,ENall,RHoffman, MClayton, TBraun, PKline

! ' Consumers Power Company: KRKline, PCWebb, RMGerzetich The attached Agenda was agreed upon.

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- Agenda Items

1. Report of technical group meeting 4 The negotiating teams were informed of the extensive discussion relating to the definition of a hypothetical plant and the applica- -

bility to the definition of site-sensitive costs.

' The technical committees discussed recoverable cost items and then agreed among.them that both parties would attempt to minimize losses. - The report went on to discuss Unit 2 steam costs, reserve

' capacity, and the allocation of costs, generally giving the negotiat-ing caninittee the advantage'of .their in-depth technical; discussions.

The technical committees' and the drafting committees were then excused with the former group to continue discussions and the

drafting committee to continue its work on a draft of a proposed

general agreement.

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. Reoort of drafting committee meeting The report of the drafting committee was submitted-in the nature of

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a number of.pages of proposed text of contract language.

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Discussion of list of unresolved items

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.The parties continued their discussion of the unresolved items, a "

list.of which is attached hereto, and then adjourned for the day.

4. Consumers' response to open- issues Consumers a' proposal for adiscussed resolution ofthe theunresolved items and in each same. The parties insta caucussed following which the session reopened.

5. Dow's response to open issues

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. Dow made proposals comments relating thereto. on the list of unresolved items and Con.

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The parties indicated tentative agreement on some matters which were referred to the drafting

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f-comeittee and a necessity 'for further information on other items which were referred to the technical committees.

that the technical committees and the drafting committee'wouldIt was agre continue to work during the next two weeks.

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• Schedule for' future necotiat' ion activities 4

The parties established Thursday, February 23, for a meeting in

_ Midland, and if necessary, Friday, February 24, at the same place.

7. Adjournment

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The meeting was adjourned. -

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AGENDA

• LCONSUMERS POWER-DOW !!EETING February 8 and 9,:1978 '

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-Report of. technical group meeting 2.

Report of drafting committee meeting

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Discussion -of' list' of unresolved items-

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Consumers' response to open issues '

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Dow's response ~to open issues- ' ,! '

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Schedule for future negotiation activities -

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7.- Adjournment

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. UNRESOLVED ITEMS

1. Steam costs a) - Warranted or actual (whichever~ is greater)

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b)' Capacity charge. deferral' (electric / steam) c)

Cost from Unit No. 2 -(first call on steam)

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d). Capital / operating cost structure'

'l) hypothetical plant

2) return on equity

3) decommissioning cost

4) penalties above or below

5) power credit:above reserv. contract e demand-

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6) steam metering

' 7) ' ' allocations

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3. Risk' sharing ~

s L a) recoverable: cost

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i b). liabilityi c) general

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4. Water ~ Cohtract . '

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5. Buy-out clause L

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6. . Final date

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'O 9 gb, UNITED. STATES-OF AMERICA d -[, YO

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NUCLEAR REGULATORY COMISSION Dk A -crj ,,fe

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Before the Atomic Safety and Licensino Board #

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In the Matter of "

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CONSUMERS POWER COMPANY ) Docket Nos. 50-329

) 50-330 (Midland Plant,-Units 1 and 2) )-

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CERTIFICATE OF SERVICE I hereby certify that copies of the attached " Supplemental

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Response of Consumers Power Company and The Dow Chemical Company to Interrogatories of Intervenors Other than Dow" dated February 9, 1978, were served upon the individuals whose names appear on the attached Service List by deposit in the United States mail, postage prepaid and properly addressed, on the 10th day of February,1978. _ _ .

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Connie K. Miller /

"' P.O. Box 271 The Dow Chemical Company Legal Department Midland, MI 48640 Dated: February 10, 1978

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Attachment:

Service List-t

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SERVICE LIST Marshall E. Miller, Esq. , Chairman Richard K. Hoefling, Esq. 7

~ Atomic Safety and Licensing.Boaro. Counsel to NRC Staff

'U.S. ; Nuclear Regulai.ory Commission Nuclear Regulatory Commission Washington, D.C. 20555 Washington, D.C. 20555 Dr. . J. Venn L Lee' ds, Jr. Caryl A. Bartelman, ' Esq.

Atomic Safety and Licensing Board Michael I. Miller, Esq.

10807 Atwell Isham, Lincoln & Beale Houston, Texas 77096 One First National Plaza

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Chicigo, IL .50603 Dr. Emmeth A. Luebke:

Atomic Safety and Licensing' Board Atomic Safety and Licensing Board U.S. Nuclear-Regulatory Commission Panel Washington, D.C. 20555 U.S. Nuclear Regulatory Commission -

' Washington, D.C. 20555 Myron M.-Cherry, Esq.

One. IBM Plaza

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Chicago, IL' 60611 Atomic Safety and Licensing Appeal

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U.S. Nuclear Regulatory Commiss' ion Judd L.-Bacon, Esq.- Washington, D.C. 20555 Consumers Power Company 212~ West Michigan Avenue Docketing and Service Section Jackson, MI 49201 Off fce of ~ the Secretary

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Ms.-Mary Sinciair ' U.S. Nuclear Regulatory Commission Washington, D.C. 20555

- 5711 Summerset Street-Midland,-MI ~48640 I

Harold F. Reis, Esq.

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Rohrt Lowenstein, Esq.  !

Lowenstein, Newman, Reis & I Axelrad 1025 ' Connecticut ~ Avenue -

Washington, D.C.z 20036 1

Mr. Steve Gadler .!

2120 Carter Avenue l St. Paul,~Minnes,qta 55108 j Norton Hatlie, Esq. -

l fAttorney at' Law . _

P.O. Box 103 ,

.Navarre, Minnesota 55392 s

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