ML20003B936

Reply to Central Electric Power Cooperative,Inc 810212 Ltr to Commission.Central Cannot Claim Benefits of Agreement & Also Call Agreement Illusory.Estoppel Applies.No Facts Shown Proving License Conditions Needed.W/Certificate of Svc

ML20003B936
Person / Time
Site:	Summer
Issue date:	02/20/1981
From:	Knotts J SOUTH CAROLINA ELECTRIC & GAS CO.
To:	NRC
Shared Package
ML20003B934	List: ML20003B933 ML20003B936
References
ISSUANCES-A, NUDOCS 8102260192
Download: ML20003B936 (5)

Text

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O. .

! UNITED STATES OF AMERICA NUCLEAR REGULATORY COMMISSION BEFORE THE COMMISSION i

In the Matter of:

SOUTH CAROLINA ELECTRIC & GAS )

COMPANY and ) Docket N'.. 50-395A

' SOUTH CAROLINA PUBLIC SERVICE )

AUTHORITY )

(Virgil C. Summer Nuclear Station, )

Unit 1) )

i REPLY OF SOUTH CAROLINA ELECTRIC & GAS COMP \NY TO CENTRAL ELECTRIC POWER COOPERATIVE'S LETTER OF FEBRUARY 12, 1981 on February 12, 1981, counsel for Central Electric Power Cooperative, Inc. (" Central") sent a letter to the Secretary of the Commission attaching a copy of the final Power System Coordination Agreement (" Agreement") between itself and the South Carolina Public Service Authority (" Authority").

In this letter, Central made several statements reviewing 4

the proceeding, discussing prior submissions of other parties, and urging certain actions on the Commission. This letter should be viewed as an unauthorized pleading, and SCZ&G has i- moved to strike or in the alternative, for leave to reply.

'If it is to remain on the record, and such leave is gr&ated, there are two. points which South Carolina Electric & Gas Company ("SCE&G") believes warrant reply.

4 NORS60 \W

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+ First, we have difficulty understanding how Central can claim the benefits of the Agreement with the Authority and recommend its approval by REA, anc then com> before this Commission to argue that what it bargained for is " illusory".

In technical legal terms, there is in these circumstances an l estoppel of Central from challenging the contract it se recently made, and the approval of which it urged on another federal agency, unless it claims fraud or duress, which are not alleged.

Second, as to Central's claim that license conditions are required, it is clear from the Atomic Energy Act and the ,

Commission's practice that license conditions are only appro-priate when there is some past conduct which warrants the 4 inference that such conditions are needed to preclude the creation or maintenance of a situation inconsistent with the i

antitrust laws. Central has yet to make such a threshold showing. It has never alleged, much less shown, any specific transaction in which there has been a refusal to provide so-called power exchange services by SCE&G to Central and/or its members. The Staff stated in its February 10, 1981 comments in

. response to the Board's January 15 order, that it "has not seen any factual material that would lead to the conclusion that SCE&G is explicitly or constructively refusing, in an anti-

?

competitive' manner, to provide Central with power or services."

(p. 12). entral itself acknowledges in its January 23, 1981 f

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comments that SCE&G has offered to deal on a case-by-case i

! basis in the area of transmissien services and has offered it unit participation. (p. 5-6).

Staff further noted in its February 10 comments that Central has in the Agreement the remedies that have generally resulted from other NRC antitrust proceedings. It is difficult i r to see why license conditions should be even considered at this stage absent any showing of competitive impact and when the " remedies" that such ccnditions would impose already exist.

4 Since nuclear plant access and related transactions are no i

longer a factor in the case, if Central has a grievance  ;

regarding specific transactions, the proper forum for its l

complaint would be the FERC, not this Commission. FERC can now order wheeling, for example, under the FURPA Amendments to the Federal Power Act, should parties be unsuccessful in i

the future in negotiating voluntary arrangements.

Re ctfully submitted, CVE h' f JosepbB. Knotts, i Jr.

Counsel for South Carolina Electric &

Gas Company I

l Date: February 20, 1981 j r

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,,-.-n s , , , . . , + . - _ _ , , .

j. DICO UNITED STATES OF AMERICA p 0005E33D NUCLEAR REGULATORY COMMISSION ,

ggNRC

FEB 231991

• U BEFORE THE COMMISSION i 02 O Sd'Y yy ogwing & Serr:2 B.~ e

/

/

In the Matter of: \ -* '

. ' [,

SOUTH CAROLINA ELECTRIC & GAS )

OM M and )

Docket No. 50-395A

)

SOUTH CAROLINA PUBLIC SERVICE )

AUTHORITY ) '

)

(Virgil C. Summer Nuclear Station, )

Unit 1) )

CERTIFICATE OF SERVICE I hereby certify that copies of " Motion by South Carolina Electric &

Gas Company to Strike Letter from Counsel for Central Electric Power Coope::ative, Inc. of Februt.cy 12, 1981 or, in the Alternative, for Leava tc File a Reply" and " Reply of South Carolina Electric &

Gas Company to Central Electric Power Cooperative's Letter of February 12, 1981" in the above captioned matter, were served upon the following persons by deposit in the United States mail, first class postage prepaid this 20th day of February, 1981:

Chairman Ahearne Samuel J. Chilk Office of the Commission Secretary of the C;crnission U.S. Nuclear Regulatory U. S. Nuclear Rep latory Com:ri caion Commission Washin ton, D.C. 20555 Washington, D.C. 20555 Commissioner Gilinsky Docketing and Service Section Office of the Commission Office of the Secretary

~U.S. Nuclear Regulatory U.S. Nuclear Regulatory Cormission Commission Washington, D.C. 20555 Washington, D.C. 20555 Commissioner Hendrie Atomic Safety and Licensing Office of the Commission Appeal Board Panel U.S. Nuclear Regulatory U.S. Nuclear Regulatory Commission Commission Washington, D.C. 205d: Washington, D.C. 20555 Co=missioner Bradford _

Atomic Safety and Licensing Office of the Commission Board U.S. Nuclear Regulatory U.S. Nuclear Regulatory Commission Commission Washington, D.C. 20555 Washington, D.C. 20555

i Jerome Saltzman, Chief George H. Fischer, Esq. i

~

Utility Finance Eranch Vice President and Group i

U.S. Nuclear Regule 3ry Executive - Legal Affairs Commission South Carolina Electric & Gas

. Washington, D.C. 20555 Company 1 P.O. Box 764 i l

Hugh P. Morrison, Jr., Esq. Columbia, South Carolina 29202 Charles S. Leeper, Esq.  ;

Michael Rand McQuinn Robert Medvecky, Esq.

Cahill, Gordon & Reindel Reid & Priest i 1990 K Street, N.W. Ste. 650 1111 19th Street, N.W. Ste. 1100 Washington, D.C. 20006 Washington, D.C. 20006 l Mr. W.C. Mescher Edward C. Roberts, Esq.

I President General Counsel C. H. McGlothlin, Jr. South Carolina Electric & Gas South Carolina Public, Esq. Company

Service Authority P.O. Box 764 i

223 N. Live Oak Drive Columbia, South Carolina 29202 Moncks Corner, S.C. 29461 Joseph Rutberg, Esq.

Mr. P.T. Allen Fredric D. Chanania, Esq.

Executive Vice President Office of Executive Legal and General Manager Director j Central Electric Power U.S. Nuclear Regulatory Cooperative, Inc. Commission  !

+

P.O. Box 1455 Washington, D.C. 20555 Columbia, South Carolina 29202 C. Pinckney Roberts, Esq. '

g Dial, Jennings, Windham, Thomas & Roberts yose,ph B. Knotts, Jr.

P.O. Box 1792 v Columbia, South Carolina 29202 Robert Fabrikant, Esq.

Donald A. Kaplan, Esq.

Janet R. Urban, Esq.

P.O. Box 14141 Washington, D.C. 20044

Wallace E. Brand, Esq.

Edward E. Hall, Esq.

Brand & Hall 1523 L Street, N.W.

Suite 200 Washington, D.C. 20005 i

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fc: the purpose Of measuring certain nch'e gases which might ce emi::ed f:ct a facility in the event of an incident.

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