ML20114E697
ML20114E697 | |
Person / Time | |
---|---|
Site: | Grand Gulf ![]() |
Issue date: | 09/22/1978 |
From: | Mcdiarmid R SPIEGEL & MCDIARMID |
To: | Urban J JUSTICE, DEPT. OF |
Shared Package | |
ML20114E688 | List: |
References | |
NUDOCS 7907110337 | |
Download: ML20114E697 (7) | |
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Janet Urban, Esq. Septencer 22, 1973
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li:ed to sell partial require =en:3 pcwer a: an TERC rate to
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and Greenwccd, Mississic= . ..
On July 10, 1977, Clarksdale *: led a Peti:icn to intervene in the FPC decke in vn:ch MPs; had filed :ne interconnection agreement witn Clarksda'.e en June 7.
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ditions to its AEC license and that in the t.". e ' . . . e . ~. ~. . . n. a. c . .' . . a g . *. *. . '
view cf Clarksdale
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agreemene is inadequate and that it will seek :..e addi:icnal service schedules w
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which are believed necessary and unich i:
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4 Cn Juiv. *9, 1977,a:ne Mav.er cf. Cla rksda'.e , Mr.v. ::
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alia, sna: 30 far as Clarksdale's reccrds snewed, nc :-der Of a.a.-..c.'r a..'. .. . . . a 1 .d ",, w .' .' ". e 6' c .' .' a ". . . .' . '. a ^ ". e. a. . . ~ada.
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.. * . ~. a. . a. s . . . . r- o . . . . a s .' . . , .. a s e lead pcwer and energy 'r:n MPs* under MPLL's wnciesale f *ed rate.
Mav.er '4e: ster nc ed :ns: "'.srkeda'.e wcu'd nave :a:a-
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. . Janet Urban, Esc.. September 22, 1978 1
a resttit cf the national policies which had deprived Clarksdale of the gas supply upon which i: had relied in the constructicn of its generatien, and inquired as to the transmission rate which R?s* would apply to the sale of unit
capacity by Clarksdale er purchase by Clarksdale to ce frem c her entities interconnected with the Middle Scuch Transmission System. On August 13, 1977, Mr. Lutken, President of MPs*, respended to Mayor Webster suggesting that Clarksdcle had never expressed an interest before in ,ar-ticipation in the Grand Gulf Unit and therefore participatien woud be difficult if not i=pcssible but na: the Cc=pany was -
willing :o discuss the matter further.if desired. The letter suggested : hat a better epproach =ight be to censider the ecssibility of su =Ivane. Clarksdale's needs :em=crariiv.
pending the planning and c nstruction of fu:ure generating facilities and tha the present inter:cnnec::ca agreemen:
provided a schedule for that. He later noted, hcwever, that '<
energy availa:1e under these schedules wculd be at the incre-
= ental rate for the entire Middle Scu n System, then esti-mated to be in a range :etween 5.0 and 67 per .swh. The Company offered := consider.the purchase cf Clarksdale's excess capacity for .eakinc. . cur rcses and rec.uested addi-tienal infor=atien. :: also stated its willingnese tc deve-ic; a propesci for ::ansmissien service to Clar.'ssdait and requested an idea as te the maximum quantity cf pcwcr under c .a n s .' ~' e . a ... ' .. a.a. '. "..'.a. .. c .' . . . ~a
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- transmission sys*e3.
Mayer We:s:er respenfed September 3, 19 7, again
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Gulf plant, and requesting an cpper: unity for Clarksdale :
purchase base 10ad electricity ericed at its appropria e c:s:
cr to purchase approxima:ely 19.5 =c;awa::s of capacity frc:
Mississippi ?:ver s L gn: a: estabitshed TPC wnciesale ra:es.
Several meetings were held :etween Clarksdale and M?s*,
ceginning en Cet::er 16, 19 7'. prepara:Ory to that mee-ing, Maver We: ster had furnisned to Mr. Lu: ken a letter cf Oc:: er 18, 1977, specifying in scre detai. seme of the matters whi:n Clarksdale wished to achieve. Clarksda'e has no vis: ::
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- at these series cf meetings, but i: is clear tha: no effer cf participa:icn in Grand Oulf has been Or is li.<ely to be made; that MPSL has declined :: purchase ;cwer er energy fr==
Clarksdale er te sell base 1 cad ;cwer er energy ce pcwer and energy under L:s TIP.C filed rate :: C*arksdale even theugh it can be shown that such transactices woulf be advantagecus :=
its sharehciders; bu: MPs* did file a pr:pesed transmissica
Jane: Crean, Esq. Septemcer 11, 19 3 r$
rate for Clarksdale en August 23, 1973, in FERC Cccke ::c .
IR73-553, tec.e:her with a similar rate for the City of .
Greenwced, M:ssissicc.i .
in ::ccket E 17 9-5 8 4. While Clarksdale believed certain aspects of tha: rate filing te be cypressive and unjus: and unreascnable, and filed a Prc:est, Pe :::en ::
Intervene and Recuest for Cne-Cay Suspensica en Septe cer 15, 1973, Clarksdale aisc believed tha: : would te scle :: uti-
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frem the extremely high energy costs wtich it was # creed to incur purchasing hign ecs: cil to ccerate its units in a situatien wnere base icad pcwer and energy were nc: avaiiacie frem any c her source. Consecuen !v, Clarksdale entered an a q . a. a. . a. .n . v .' ..'. '. a. C.4 .v c '
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purchase of sc=ewnat :cre than 14 megava::s of capaci y, and t '.. a. d a. .' .* v a.. -v. ~ .# ~..'. a . ,c w a. . ~ .nd*
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...a.. .... .,4.c. . .. s . .. . . . .s pcwer .. e and
. . . . energy as,,quickly a cc....., .. , 4 4,n .c as,,e pcssible, and aise ine" ired
.a ..4c.4,a...n ..
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G L..., a . ns a .. .st i.. . . a .,....s.
v.P..,,
. =. a a , .. ,,
...s..,
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cperations, Clarksdale furnished MPs* a progesed reurly sche-
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.$ ... ...a. , a..d s.a.ed. .. . a . . .'. a. . a. w a s .=. . a. c.. r. .' m. . .' ' .' .' .' .' . ". .'.'. .. v.
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. . . . ... .... d ...e. .s . . . a . 4.. . ., . . , . . ....a... . . .
been able :: werk cut a way to accer.medate b.v askin, c u .' s . s . . a < . . a. .- =- * ' .. , . . . . .- ... a . . .v , ..s c.-.rc - a. . e a .' .' .' .' .' * . a. , ..
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i n . e . ca .. r. .e . . .' . .. w .' ..'. u u l .' S
- a . . a. s , .'. u . r rc c s e d " . . . ' . ' . . . ' . . , . . . a.
services of *cuisiana ww Pcwer .w & Li,h: Cc c.anv. er c:her entities
.s F ac.*4 ...... 4.s .c o a c.f. . . .
f
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- i. Jane: Orcar, Esq. <septe==,; :2, '373
. e l
l By tele;hene conversatien Of Septe=cer 19. ;??2, however, MPEL advised Clarksdale that i: vculd ne te possible under any circu= stances to receive energy fr:=.32;f
' Stat:s until ar. Inter:cnnecti:n agre;e=ent :etween M?sL1and Gulf States could be' worked cut, and that this neget:sti:n might be quite lengthy. hus, MPs* ! suggested tha: O'arksda'e (cr; Lafayette) centract wa-h icuisiana Pcwer i Light f:: se r- -
vice under *PEL's transmission senedule in add::::n :: :he transmissien ra:es, ter=s and cend :::ns with vni:n Clarksdale wculd have to cc= ply airyady with Ocif States and MPEL.
Since none of 01arksda'e's advisors ::c'd understand a legitimate basis 'er such pcsitten, piarksdale, by le :er Of Septe=cer: 20,'1973, ' ' ' '
requested a written explanati n of MPsL's
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. s
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r ..n . ~. . a - .' " ..~..' . .~ 1 . *. ^. .
such a wri: en explanation, but at appr:xt:stely 5:00 PM hat afterncen, sta ed that r... . .y .s .a , ....g.,.
. . . . . 33.s . .. 3, inas=ach
.s ,. ,.... as.w, the 00.,;any's a.g.es re' usa * ::
. ..- . . . . u.. .. .s . . . . . . . .
.~. e c . . .~ n '.. a '. .' ~ .~. ~, . s .~ g =. .' - ~ .'r . .~ a ~. .' c n. s ,
such a le::er. ,
.~.~.~u'.'.'
. ~.~..'...'s..
As may be seen "r:s the accve, fespite diligent applicati:n and su stantia**y =cre actres;cndence than is cutlined accve, althcugn 0*arksdale has requestof who'esale service en a partial requirements basis under TI?.0 tariffs, MPEL has declined :: prev;de such service, a ;csitien wnien O'.arksda*e believes incensisten w;;h M?s*'s :=*igatiens u rder the License C nditi:ns. A1 heugh Clarksda'e 'and ceners;
.s s.a.s..n have repeat, ed'y s ..aa. a. .
reques...u.c t,ed,a.::a: an effer :f par-
.. . .s vPt . .
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.r.. . e . . ,. a. ......,.
. . . . . a ......
s ,. . as .ee :....w . ..s s u. c.w.
w
. . . .m..., a.d Clarksdale has been given ne ressen :: expe : ::at'sa-t an t
offer w
e .4 ..s will.a.e
- o. .4.n =ade, a ;cs si v.Pa.. .
.tten...se. wnichlClarksdale
. . . . . . .. .s._e .s.
- e*1 eves ::
. . e r. . . . .
althcu dule, gh 1: hasMPEL ch nas sen finally:: interpre: f: led its a transmissi:n
- serv :e senedule servi:einsche- seen a way as to effectively preclude the:acility Of ~' ark:da'e :=
cetain cac.act:v. and energy which wcuid :e ec:nes : f:: .
Clarksdale even v'th the payment Of two " pancake
- transmissica rates, insisting tha: Clarksdale en:er in : an agree =ent wi:h its cer;ces:e af'i'iate ;Pn; as we'1, and pay both of these M ddle Scuth "tilities' affiliates even tucugn the Middle Scuth System 1:self, vnich is believed :: have an inter:ennection agree =en with Culf States, per= :s a free-
.ficwing w . c u.g .w. ce,n, a.. .. trally
., .. 4.s c;e, rat.e,d tran.smissien a.. ..a.es . . .w cpera:ic,a :ver and Clarksdale :elieves :his, as well, :: be
. . ..e -eine:ns:s:ent w
e.s ... a ./ w:: ..e.
MPnL's li:ense cligations.
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. . l Janet Ceban, Esq. Septe=ter ::, I? 3 s e .v a.
Cn =ehalf cf the *ity cf "larksdale, this v.?,1
. o .'..3 " .i . a. w.*. e . . . a.. - ..w. a. ..*.,-a--..a....
. . ' . ".. . ' c a. .. a. . . 4. f a. s
.'.e s e r o s ' . .' .s o .' .'*.2 s .*. , .
herein, to :e consisten u."....*..'....'...%.=.-a. ." a'.' . . , c " . . . . . a. '
vi:h the agreemen: reacned-te:veen Justice and Co*at*.=ents. If the Department MPEL emecdied as the Grand Gulf License dces te'.ieve these ;cs:. :. ns
. s..
a ,'m.4 .s n. ist a .ma:= , te. consistent with 1: cense a .... e n . 4 ,. ,.....
celiga:icns, w,.u..a I believe ::a:, 1:
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.e
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u n.d. a. .-
Section'.'05 tiens rev' sed. of the A::mic Energy Ac: Of-1954, and i:s ;csi-t.' ons a -a. I' the Oepart=ent :elieves that these ;csi-wi.'.'. eq"es*.
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adv'.-a.
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. ..S. a.
Department dces in such si::ati:ns :: enforce its agreemen:s.
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Enciesures n,wC .. t.w,os i
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