ML19329C946

Supplementary Response to Utils' Initial Interrogatories & Request for Documents.Painesville Electric Power Sys Is at Severe Competitive Disadvantage in Relation to Cleveland Electric Illuminating Co.Certificate of Svc Encl

ML19329C946
Person / Time
Site:	Davis Besse, Perry
Issue date:	10/30/1975
From:	Berger M, Charno S JUSTICE, DEPT. OF
To:	Atomic Safety and Licensing Board Panel
References
NUDOCS 8002200921
Download: ML19329C946 (7)

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I hEFORE T-iE ATCMIC SAF2""1- AND LIC2" SING BCMD

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i The Clevelar.d Electric Illuminc hing ) Docker Mos. 50~4%

Ccape.ny ) liG-500A (Daviu-hs ca Wclear Po./er Station, ) SC-SulA l Unitc 1, 2 and 3) )

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i The Cleveland Electric Illuminating ) Docket Hos. 50-44^A Cor2.nv. r et al. ) 50-441A

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Pursuant tc cerraspondence bet tacn the Department of Justica j

(her+inafter "Cepartment") and ccuncel for tre Applicantsi dated 1

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. October 21':.nd October 23, 1975, the Departcant submit: th: ,

folletting supplomantal recponses to " Ap.alicants' Inita.al Intar-

rogatories and Pequest'for Documents for the Dcpartmanc of Justice End the AI.C - Ragulatcr/ Staf f," dated Au<juct 25, l??4. Answers ,

i raade herein are complete to tr:e k.'.awledg? cnd belief of the t.ndersigned as v2 October 31, 1975.

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• 22SPC_JS9 TO DISCOVERY RTOUESTS Discoverv I4cuest'2 umber 12. .

After discovery and preparation of~ expert testimony, the Department does adopt the position that unless Painesville "can

- secure eitherl access or interconnection and coordination, it will be unable to remain a viable competitor." The basis for this position is that Painesville, a relatively small, isolated electric power system, does not have available to it the rela-tively inexpensive and reliable electric power available through cocrdinated operation or development with other utilities. Because it-is a small system, it cannct afford to construct nor utilize the large generating units which, because of eccnomies of scale, produce the least expensive electric power available. Painesville must use. smaller generating units which produce more costly electric

• power. Furthermore, since Painesville is an isolated systes., it cannot engage in coordinated operation. Under the presently

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L existing interconnection agreement between Painesville and CEI, 4

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Painesville is denied the benefits of certain elements of

3. coordinated cperation, such as whecling, and has no access to a

the benefits of coordinated development.- Thus, Painesville is at a very severe competitive disadvantage vis-a-vis CEI, which completely surrounds it and which engages in both coordinated operation and development with the other members of CAPCO and has access to large-scale, low-cost generating facilities. If j

Painesville is.to remain a competitor of CEI, it must therafore

. gain access to the same benefits of coordinated cperation and development new enjoyed by C2I.

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Discovery Request Number 13

.The Department doer adopt the position that "without coordi-nation,. including wheeling, reserve sharing, and joint planning of and participation in large-scale generating units, [ Cleveland]

cannot continue'to compete with CEI." The same reasons stated in

. respense to Discovery _ Request Number 12 are applicable here. The J

present emergency interconnection between C2I and Cleveland does not provide an adequate basis for coordinated operatien between

, the two systems. CEI has similarly foraciosed access by Cleveland

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to the benefits of coord!.nated development.

4 By virtue of CCI's stipulated dcminance and the anticcmpeti-tive acts and practice enumerated in Part A, Interrogatcry Number 2, of the " Response of Department of Justice to Applicants' Inter-

] rogatories and Requests for the Production of Documents," filed September 5, 1975, a situation inconsistent with, indeed, violativa i

of, the antitrust laws exists. T!ua wheeling of power to Cleveland i

l by CEI,_ as well as the other aspects of coordinated operation, are ,

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necessary to remedy this situation.

Disccvery Request Number 16 To be free of anticompetitive effect, any commitments by CEI

to.Painesville or Cleveland would have to provide for a degree of

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3 coordinated operation and development sufficient to provide the 1

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• r *L _ s.n sJ a . . e _ .) r *.e r .7. ? n 9- u.A U.s. r t' NUCLEAR REGULATORY COMI:ISSION

_B_E_ FORE THE ATCMIC SAFETY AND LICENSING BO.TRD In the Matter of )

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The Toledo Edison Company and )

The Cleveland Electric Illuminating ) Docket Ncs. 50-346A Com_c a. n.y ) 50-500A (Davis-Basse Nuclear Pcwer Station, ) 50-501A Units 1, 2 and 3) )

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The Cleveland Electric Illuminating ) Docket Mos. Su-440A Company, at al. ) 50-441A (Ferry Nuclear Pcwer Plant, )

Units 1 and 2) )

CERTIFICATE OF SCRVICE I hereby certify that copies of SUPPLEFINTARY RESPO:ISE OF

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AND FICUEST 20. DOCU C.iTS have been served upon all of the parties listed on the attachment hereto by deposit in the United States mail, first class, airmail or by hand delivery, this 31st day of October 1975.

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STEVES M. CHARNO Attorney, Antitrus t Division Department of Justice n n l D D'l K -

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Douglas _ Rigler,' Esquire Andrew Popper, Esquiro Chairman Benjamin H. Vogler, Esquire Atomic Safety and Licensing Roy P. Lessy, Jr., Esquire Board Office of the General Ccunsel Faley,-Lardner,-Hollabaugh Nuclear Regulatory Commission

& Jacobs Washington, D.C. 20555

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815 Connecticut Ave., N.W.

Washington, D.C. 20006 Gerald Charnoff, Esquire William Eradford R yncids, Esquire Ivan W. Smith, Esquire Shaw, Pittman, Potts & Trowbridge Atomic Safety and Licensing 910 Seventeenth Street, N.W.

. Board Washington, D.C. 20006

! Nuclear Regulatory C0mmission

• Washingten, D.C.- 20555 Lee C. Howley, Esquire Vice President & General Counsel The Cleveland Elactric John-M. Frysiak, Esquire Illuminating Ccapany Atomic Safety and Licensing Post Office Eox 5000 Board Cleveland, Ohio 44101 Nuclaar Regulatory Commission I

Washing cn, D.C. 20555 Donald H. Hauser, Esquire Corporate Solicitor Atomic Safety and Licensing The Clevelaad Electric i Board 7anel Illuminating Ccapany

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Muclaar Ragulatory'Ccamission Pcat Offico Box 5000 Washington, D.C. 20535 Cleveland, Ohio 44101 Frank W. Karas John Lansdale, Jr., Esquire Chief, Fuelic Proceedings Cox, Langford & Brown Staff 21 Dupont Circle, N.W.

Office of the Secretary Washington, D.C. 20036 Nuclear Regulatory Commission Washingten, D.C. 20555 Chris Schraff, Esquire Office of Attorney General Abraham 3raitman State of Ohio Office of Antitrust and State House Columbus, Ohio 43215 Indemnity

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Nuclear Regulatory Commission I Washington, D.C. 20555 Karen H. Adkins, Esquire

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Assistant Attorney General Herbert-R. Whitting, Esquire Antitrust Section Robert D. - Hart, Esquire 30 East Broad Street Law Department 15th Floor City-Hall Columbus, Ohio 43215 Cleveland, Ohio 44114 4

Leslie Henry, Esquire Reuben Goldberg, Esquire Fuller, Henry,~ Hodge

' David C. Hjelmfelt, Esquire & Snyder 1700 Pennsylvania Avenue,-N.W. 300 Madison Avenue Toledo, Ohio 43f P3 P' Suite 550 0')

. Washington,:D.C. 20006 ,

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Thomas-A. Kayuha; Esquir2 -James B. Davis,.Ssquire Ohio Edison Company Rober t D. Hart, Esquire 47 NcrtY Main Street Director of Law Akron, Ohio 44308 City of Cleveland 213 City Hall David M. Olds , - Ecquire Cleveland, Ohio 44114 Reed, Smith, Shau & McClay 2747 Union Trust Building Lee A Rau, Esquire

.Pittsburs.4, Pennsylvania 13219 ' Joseph A. Rieser, Jr., Esquire nted, Smith Shnv & McClay Mr. Raymond Kudukis Suite 404 Director of Utilities Madison Building City of Cleveland Washincton, D.C. 20005 1201 Lakeside Avenue -

Cleveladd, Ohio 44114 William S. Lerach, Esquire Reed, Smith Shaw & McClay Wallace L. Duncan, Esquire 747 Union Trust Cuilding Jon T.'Erown, Esquir3 Post Office Bcx 2009 Duncan, Erown, Weinber7 Pittsburgh, Pennsylvania 13230

& Palmer 1700 Pennsylvania Avenue, U.N. Michael M. Briley, Esquire Washington, D.C. 20006 Roger P. Klee, Esquire Fuller, Henry, Ecdge & Snyder Edward A. Matto, Esquire 300 Madison Avenue Assistant Attorney General Toledo,-Ohio 43604 '

Chief, Antitrust-Secticn 30 East Broad Street 15th Floor Columbus, Ohio 43215 Richard M. Firastone

-Assistant Attorney General Antitrust Section 30 East Brcad Street 15th Floor Columbus, Ohio 43215 Victor F. Greenslade, Jr., Esquire Principal Staff Counsel The Cleveland Electric Illuminating Company Post Office Box 5000 Cleveland, Ohio 44101 Robert P. Monc, Esquire George, Greek,1 King, McMahon

& McConnaughey Columbus Center 100: East Broad Street Columbus,. Ohio 43215 cn c3 ,

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