ML19331B102

Supplemental Response to Intervenors' Interrogatory 1 Re Status of Negotiations.Meeting Re Latest Draft of Contract, Decommissioning & Site Restoration Costs Held on 780407.W/ Documentation & Certificate of Svc.Related Correspondence

ML19331B102
Person / Time
Site:	Midland
Issue date:	05/04/1978
From:	Deline D, Howell S CONSUMERS ENERGY CO. (FORMERLY CONSUMERS POWER CO.), DOW CHEMICAL CO.
To:	AFFILIATION NOT ASSIGNED
References
NUDOCS 8007250794
Download: ML19331B102 (8)

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$ fY, UNITED STATES OF AMERICA

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Before the Atomic Safety and Licensing Board h#

THIS DOCUMENT CONTAINS.

In the Matter of P0OR QUALITY PAGES --

CONSUMERS POWER COMPANY -

) Docket Pss. 50-329 ~

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

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SUPPLEMENTAL RESPONSE OF CONSUMERS POWER COMPANY AND THE DOW CHEMICAL COMPANY TO INTERROGATORIES OF INTERVENORS OTHER THAN DOW Consumers Power Company (" Licensee") and The Dow Chemical Company

("Dow") submit the following supplemental answer to that portion of Intervenors' Other than Dow ("Intervenors") Interrogatory No. l related h to the status of negotiations between Licensee and Dow. Interven'.. s '

Interrogatory was directed to both Licensee and Dow.

QUESTION

1. Testimony in this proceeding thus far has indicated a dispute between Consumers and Dow Chemical Company (Dow) relating to the con-struction of the Midland Nuclear Facility and sale and purchase of steam and electricity from said facility. All or a portion of the Dow-Consumers contracts have been identified or attached in written testimony of l

Consumers' witnesses in this proceeding, Messrs. Keeley and Howell. )

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With respect to any dispute concerning such contracts between Consumers and Dow please state the following:

(a) Describe in detail the nature of the dispute and the -

status of any negotiations to resolve said dispute. If it is your position that no dispute exists, please state the basis therefor in light of the cross-examination testimony of Dow witness Temple, .

including but not limited to the disclosures made by Mr. Temple of meetings between Consumers and Dow and their representatives in _.

September,1976 wherein suggestions of lawsuits were made, as well as correspondence between Youngdahl and Temple during 1975 and 1976 which has already been produced by Consumers.

ANSWER In accordance with the schedule provided with the earlier Supple-mental Interrogatory, Response dated April 17, 1978, Licensee and Dow met at Dow's offices in Midland, Michigan, on April 19, 1978. J A

Attached to this Supplemental Interrogatory Response as Exhibit "A" g

is a summary report of those meetings.

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Stephen H. Howell, Vice President Projects, Engineering and Construction Consumers Power Company M - rw

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Manufacturing Manager Michigan Division Dow :hemical U.S.A.

Stephen H. Howell, being duly sworn, deposes and says that the foregoing Supplemental Response of Consumers Power Company and The Dow

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(, 3-Chemical Company to Interrogatories of Intervenors Other than Dow is true to the best of his knowledge and belief.

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Stephen'H. Howell STATE OF MICHIGAN ) ,., '; * ' ' , ' , f,, ' '.

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COUNTY OF JACKSON ) . ,'![') I l il//,j'. y, - .,

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Subscribedandsworntobeforeme,.aNotaryPublic,this(4kh.,,ay' ,

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Sylvia BL Ball Jachsen County, Michigan My Commission Expires: April 13, 1980

. D. Dick DeLine, being duly sworn, deposes and says that the foregoing Supplemental Response of Consumers Power Company and The Dow Chemical Company to Interrogatories of Intervenors Other than Dow is true to the best of his knowledge and belief.

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b./)A A X D. 'ick DeLine

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STATC 0F MICHIGAN )

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COUNTY OF MIDLAND ) _.

Subscribed and sworn to before me, a Notary Public, this 3rd day of May, 1978. w M . , ,,

Connie K. Miller

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Midland County, Michigan -

• My Commission Expires: August 16,'1981,-

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n 3 CONSUMERS POWER-DOW REOPENED NEGOTIATIONS Date of Meeting: April 19, 1978

Subject:

Minutes of Nuclear Contracts Negotiation Meeting at Midland, Mich.igan Present: The Dow Chemical Company: DDDeLine, LWPribila, JR8urroughs Consumers Power Company: SHHowell, LBLindemer, GSKeeley Present as Drafting Committee and for occasional consultation: , ,

The Dow Chemical Company: PDConner Consumers Power Company: JLBacon Present as Technical Committee and for occasional consultation: '

The Dow Chemical Company: JLSchick, EWall, RHoffman, MClayton, TBraun, PKline Consumers Power Company: KRKline, PCWebb, CGilzow The attached Agenda was agreed upon but the order was not necessarily followed during the negotiations.

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1. There were no housekeeping items.

2. The parties discussed the introductory language to the Contract and adopted Consumers Power's proposal in this regard.

3. The parties reviewed the current draft of the Agreement and adopted

' a number of previously discussed revisions which will be incorporated in a revised draft. Several substantive items were also discussed during this review including working capital, cost of. process steam to Dow af ter the initial term of the agreement and decommissioning costs and manner of recovering same if Dow should terminate during the latter stages of the Agreement. Tentative agreement was reached on the substantive items and those matters were referred to the Draft-ing Committee. -

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4. The parties, with the Technical Committees present, reviewed Section l 4.C of the Contract which covers the cost of process steam to Dow. ,

Some of the more significant items discussed in .this review included l net core heat rate, the treatment of investment tax credit, fixed j l

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n m savings credit, and the "B" factor, i.e. . the distribution of certain costs to Dow on the basis of Btu tutput. Some of these items were resolved during the review and others were referred to specific individuals for resolution. 1

5. The parties discussed the Dow proposal to be included in Section >

4.C which imposes a standard of reasonable and prudent upon Consumers Power's expenditures for the plant. Consumers responded to the' Dow proposal but no . agreement was reached on th.is item.

6. The parties discussed the "L" factor which Consumers proposes to include in Section 4.C. . This factor is intended to recognize the use of Unit 2 as a backup source for arecess steam. The parties could not agree.on the magnitude of t11s factor.

7. The last item discussed by the parties was the indemnification and hold harmless provisions which Consumers wants included in the agreement. S.ignificant differences separate the parties on this matter.

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O 00W/CP MEETING AGENDA 5 4-19-78

1. Housekeeping Items

2. "Where As"

3. Working Capital -

4. Reasonable and' Prudent - 4C

5. Decomissioning Costs

6. "L" Factor .

7. Insurance and Indemnity 5

8. Section 4C -

000 4/19/78

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UNITED STATES OF AMERICA 8 $b fE yN '4 ct*h, l

NUCLEAR REGULATORY COMMISSION S e Before the Atomic Safety and Licensing Board In the Matter of CONSUMERS POWER COMPANY ) Docket Nos. 50-329 ~~

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

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CERTIFICATE OF SERVICE I hereby certify that copies of the attached " Supplemental Response of Consumers Power Company and The Dew Chemical Company to Interrogatories of Intervenors Other than Dow" dated May 4, 1978, were

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served upon the individuals whose names appear on the attached Service List by deposit in the United States mail, postage prepa.id and properly addressed, on the 5th day cf May,1978.

mio Connie K. Miller MZh e The Dow Chemical Company P.O. Box 271 i Midland, MI 48640

Attachment:

Service List Dated: May 5.1978 i

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m SERVICE LIST Marshall E. -Miller, Esq. , Chairman Richard K. Hoefling, Esq. S Atomic Safety and Licensing Board Counsel to NRC Staff U.S. Nuclear Regulatory Comission Nuclear Regulatory Comission Washington, D.C. 20555 Washington, D.C. 20555 Dr. J. Venn Leeds, 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 Chicago, IL 60603 Dr. Emeth A. Luebke -

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

' Washington, D.C. 20555

" Myron M. Cherry, Esq.

One IBM Plaza Atomic Safety and Licensing Appeal Chicago, IL 60611 Panel U.S. Nuclear Regulatory C8 mission Judd L. Bacon, Esq. Washington, D.C. 20555 Consumers Power Company 212 West Michigan Avenue Docketing and Service Section Jackson, MI 49201 Office of the Secretary Ms. Mary Sinclair U.S. Nuclear Regulatory Comission Washington, D.C. 20555 5711 Sumerset Street Midland, MI A8640 .,

Harold F. Reis, Esq.

Robert Lowenstein, Esq. ~

Lowenstein, Newman, Reis &

Axelrad 1025 Connecticut Avenue -

Washington, D.C. 20036 -

Mr. Steve Gadler 2120 Carter Avenue St. Paul, Minnesota 55108 Norton Hatlie, Esq. i Attorney at Law . j 1

P.O. Box 103 Navarre, Minnesota 55392 1

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