ML17266A460

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Opinion & Order Denying Util 790904 Application for Rehearing of Opinion 46.Util Should Propose Terms or Condition of Svc Under Requirements Tariff in New Filing & Show Proposal Is Least Anticompetitive Method
ML17266A460
Person / Time
Site: Saint Lucie NextEra Energy icon.png
Issue date: 10/04/1979
From: PLUMB K F
FEDERAL ENERGY REGULATORY COMMISSION
To:
Shared Package
ML17209B115 List:
References
ER78-19, ER78-81, NUDOCS 8105290154
Download: ML17266A460 (47)


Text

UNITEDSTATESOFAl'%RICAFEDERALENERGYREGULATORY COMMISSION OPINIONNO.57-AFloridaPoweraLightCompany)))DocketNos.-ER78-19(PhaseI)andER78-81OPINIONANDORDERDENYINGREHEARING Issued:October.4,1979DC-A-21

~g~UNITEDSTATESOFAMERICAFEDERALENERGYREGULATORY COMMISSION BeforeCommissioners:

CharlesB.Curtis,Chairman; Georgiana Sheldon,Matthew'olden, Jr.,andGeorgeR.Hall.FloridaPower&LightCompanyDocketNos.ER78-19(PhaseI)andER78-81OPINIONNO~57-AOPINIONANDORDERDENYINGREHEARING (IssuedOctober4,1979)OnAugust3,1979,theCommission issuedOpinionNo.57intheseconsolidated proceedings whichrejectedtheproposalofFloridaPowera.LightCompany(FPaLorCompany)tolimittheavailability ofitsfirmwholesale requirements servicetocertainnamedandexistingcustomers.

Noticesofcancel-.lationfiledbyFPSLwithregardtotwoexistingwholesale customers wereaZso

rejected, becausetheywerebasedonthe.Company's restrictive availability proposal.

InourdecisionwefoundthatFPSL'sproposals wereunjustandunreasonable underthestandards ofSections205and206oftheFederalPowerAct,particularly becauseoftheiranticompetitive ef-'ects.

OnSeptember 4,1979,.FP&Lfiledanapplication forrehearing ofOpinionNo.57inwhichitrequeststhatthedecisionbemodifiedincertainlimitedrespects.

1/TheCom-panyhasraisednolegalorfactualconsideration notpre-viouslyconsidered andweshalldenytheapplication.

However,wewishtoreemphasize theholdingofouropinioninlightofseveralrepresentations madebyFP&Linitslatestpleading.

FPSLnowrepresents awillingness toprovidewholesale requirements serviceunderitstariffstoanumberofFloridautilities inadditiontothosepresently served:TheCompanyiseitherserving,oriswillingtoprovideserviceto,thefollowing,:

Clewiston;

~lNootherpartyappliedforrehearing.

DocketNos.ER78-19(PhaseI)andER78-81FloxidaPublic'Utilities atFernandina Beach;FortPierce;GreenCoveSprings;Homestead; Jacksonville Beach;KeyNest;LakeHelen;LakeWorth;NewSmyrnaBeach;Starke;VeroBeach;ClayElectric, Coopex'ative; FloridaKeysElectricCooperative; GladesElectricCooperative; LeeCountyElectricCooperative; Okefenokee RuralElectricCooperative; PeaceRiverElectricCooperative; andSuwanee.ValleyElectricCoopera-tive.Reasonable termsandconditions, including reasonable noticeprovisions, will,ofcourse,be.necessary, asthe'Commission itselfrecognizes (Mimeo,p.40).TheCompanyiswillingtocontinueproviding servicetothecooperatives listedabovetotheextent.oftheirloadsinthegeographical areasinwhichtheyarenowreceiving servicefromFPaL.2/Nocontroversy'emains regarding-theprovision ofwholesale requirements servicetotheseutilities..

Also,FPGLnowagreestoproviderequirements serviceto."newutilities initsserviceareathatmaybeestablished.

bythoseen-tities.itpresently sexvesatretail....."'/'he solepurposeofFPaL'sapplication istorequestthatwemodifyOpinionNo.57topermittheinsertion ofanewavailability restriction intotheCompany's require-ments.servicetariffs.FPSLnowproposestoexcludelargeself-sufficient utilities, including, theJacksonville ElectricAuthority, theOrlandoUtilities Commission andtheCity.ofGainesville.

The-Companydoesnotrepresent thatanysuchlargeutilityhasrequested service.+2~Application forRehearing ofFloridaPower&LightCompanyat3.Twooftheseutilities, FortPierceand-~Homestead,,

werethesubjectsofthenoticesof'ancellation.

rejectedinOpinionNo.57.+3Id.at2'.See,OpinionNo.57at39.

DocketNos.ER78-19(PhaseI)andER78-81Insupportofitsrequestformodification FP&Lreiterates thearguments considered duringourearlierdeliberations.

ItarguesthatourdecisionshouldbemodifiedinlightoftheCompany's wheeling.

policyandopportunities offeredtootherutilities toparticipate inFP&L'sSt.LucieNo.2nuclearpowerplant.HeshallnotconsideradoptionoftheCompany's newproposalatthisstageoftheproceedings.

IfFP&Lwishestoproposeanytermorcondition ofserviceunderitsrequirements tariff,theCompanyshoulddosoinanewfilingwhereinitshouldbepreparedtodemonstrate thattheproposalis"theleastanticompetitive methodofobtaining legitimate planningorotherobjectives."

4/TheCommission orders:,FP&L's.application forrehearing ofOpinionNo.57ishereby.denied.BytheCommission.

{SEAL)KennethF.Plumb,Secretary.

4/OpinionNo.57at2.

APPENDXXCSt.LuciePlant,UnitNo.2ProposedLicenseConditions

~)~St.LuciePlant,UnitHo.2ProosedLicenseConditions X.DEFINITIONS (a)"Applicable area"meanstheareashownonthemapwhichisAttachment AandanyotherareainthestateofFloridainwhich,inthefuture,theCompanywillengageingeneration, transmission ordistribution ofelectricpower;provided, however,thatanareashallnotbedeemedtobeincludedwitninthe"applicable area"solelybecausetheCompanyacquiresanownership interestoflessthan50%inagenerating facilitylocatedinsucharea.(b)"TheCompany"meansFloridaPower&LightCompanyoranysuccessor corporation, oranyassigneeoftheCompany.(c)"Neighboring entity"meansaprivateorpubliccorporation, governmental agencyorauthority, municipality, ruralelectriccooperative, orlawfulassociation ofanyoftheforegoing, whichowns,contractually

controls, oroperates, oringoodfaithproposestoown,contractually control,oroperatefacilities

-forthegeneration ortransmission ofelectricity, whichmeetseachofthefollowing criteria:

(1)itse'xisting orproposedfacilities areactuallyinter-connected ortechnically feasibleofinterconnection with,thoseoftheCompany;(2)itsexistingorproposedfacilities arefully orpartially withintheapplicable area;(3)itis,oruponcommencement ofoperations, willbesubjecttoregulation asapublicutilitywithrespecttoratesorserviceunderapplicable statelaw,orundertheFederalPowerAct,oritislegallyexemptedfromsuchregulation bylaw.(d)"Neighboring distribution system"meansaprivateorpubliccorporation, governmental agencyorauthority, municipality, ruralelectriccooperative, orlawfulassocia-tionofanyoftheforegoing, whichengagesoringoodfaithproposestoengageinthedistribution ofelectricenergyatretail,whoseexistingor-proposedfacilities areconnected ortechnically feasibleofconnection withthoseoftheCompany,andwhichmeetseachofthecriterianumbered(2)and(3)inparagraph

('c)-.above.

(e)"Costs"meansallappropriate costs,including a'reasonable returnon,investment, whicharereasonably allocable toanarrangement, betweentwoormoreelectricsystemsundercoordination principles orgenerally acceptedindustryprac-tices.Xndetermining costs,novalue:shallbeincludedforlossofrevenuesfromasaleofpowerbyonepartytoaconsumerwhichanotherparty'mightotherwise serve.(f)Thecities.ofGainesville, KeyNest,Jacksonville Beach,,GreenCoveSprings,Clewiston, LakeHelen,Orlando/andMooreHavenandtheFernandina BeachDivisionoftheFloridaPublicUtilities Companyareconsidered tobe neighboring entitiesorneighboring d'sributionsystemsforthepurposeoftheselicenseconditions, withoutregardforwhetherthei-facilities aretechnically feasibleofinter-connection withtheCompany.Thisprovision createsspecificexceptions tothedefinition ofapplicable areaandshallnot,beconstrued tobringwithintheapplicable areaanysystemnotlocatedwithintheareashownonAttachment Aornotlistedhere.lZ.INTEBCONNECTZONS (a)TheCompanyshallinterconnect atanytechnically feasiblepointonitssystemandoperateinparallelpursuanttoawrittenagreement withanyneighboring entityrequesting suchinterconnection.

(b)Totheextentit.istechnically

feasible, irter-connections shallnotbelimitedtolowervoltageswhenhighervoltagesarerequested andavailable andshallno+belimitedtohighervoltageswhenlowervoltagesarere-questedandavailable.

Voltages"available" meansexistingontheCompany's system,atthedesired,pointofinterconnection.

Companymayincludeinitsrateschedules, provisions forconversion ofinterconnection voltagesandrelocation ofinterconnection pointstoaccommodate loadgrowthanddesignchangesconsistent withcontinuing development ofCompany's transmission system.

(c)Interconnection agreements shallprovidefo"thenecessary operating procedures andcontrolequ'pment asrequiredforthesareandprudentoperation oftneinterconnected systems.(d)Interconnection agreements shallnotembodypro-,visionswhichimposelimitations upontheuseorresaleofcapacityandenergyezceptasmaybenecessary toprotectthereliability oftheCompany'system.(e)Interconnection agreements shallnotprohibit.

thepartiesfromenteringintootherinterconnection agreements, butmayincludeappropriate provisions toprotectthereli-abilityoftheCompany's systemandtoensurethattheCompanyiscompensated foradditional costsresulting fromsuchotherinterconnections.

III.RESERVECOORDINATION ANDEMERGENCY PONER(a)TheCompanyshallsellemergency powertoanyneighboring entitywithwhichitisinterconnected.,

providedthattheneighboring entityhasappliedgoodutilityprac-ticestoplan,operateandmaintainareasonable installed reservemarginfortheloadthatitismeetingwithitsownresources.

Suchinstalled reservemargin,whichmayincludethepurchaseofreservesfromothersystems,shallconsistofcapacitywhichisasreliableasreservecapacitygenerally maintained.

in.theelectricutilityindustry, andwhichi" maintained andoperatedinamannerconsistent withgoodutilitypractice.

TheCompanyshallengageinsuchemer-gencysaleswhenrequested ifandwhencapacityandenergyareavailable fromitsowngenerating resources orfromthose.ofinterconnected electricsystems,but.onlytotheextentthatitcandosowithoutjeopardizing servicetoitscus-tomers.Emergency powershallbefurnished tothefullestextent.available fromthesupplying partyandrequiredbytheotherparty'semergency.

(b)Thepartiestoreservecoordination transactions

/pursuanttothissectionshallmaintainsuchamountsooperating reservesasmaybeadequatetoavoid,thezmposztxon ofunreasonable demandsonanyotherparty(ies) inmeetingthenormalcontingencies ofoperating theirsystems.How-ever,Companyshallnotimposeuponanypartyanoperating reserve.requirement whichisunreasonable inlightofsuchparty'sminimumreserveobligations underparagraph (a)above.T(c)TheCompany,ifithasgenerating capacityinexcessoftheamountcalled.for'yitsownreservecriteria, shalloffersuchexcesstoaneighboring entitytomeetsuchentity'sownminimumreservemargin.ZnlieuofselLingsuchcapacity, Companymaywaive(totheextent.ofthecapacitywhichwouldotherwise beofferedinaccordance withthisparagraph) theminimumreserveobligation underparagraph (a)aboveasto apartyrequesting topurchasecapacity.whichCompanvwouldberequiredbythisparagraph tosell.(d)Company's obligations underthissectionapplyonlyastoneighboring entitieswhichagreetoassumereciprocal obligations toCompany.IV.MAINTENANCE POKERANDENERGYCompany,whenitcanreasonably doso,shallexchangemaintenance schedules andshallengageinpurchases andsalesofmaintenance powerandenergywithanyneighboring entitywhichsorequests.

Powershallbesuppliedtothefullestextentpracticable forthetimescheduled andin'Iaccordance withgenerally acceptedindustrypracticeformaintenance powerandenergysales.Companyshallbere-----quiredtosellmaintenance powerandenergyonlytotheextentthatitcandosowithout,jeopardizing servicetoitscustomers.

Company's obligations underthissectionapplyonlyastoneighboring entitieswhichagreetoassumereciprocal obligations toCompany.V.ECONOMYENERGYCompanyshallexchangedataoncostsofenergyfromgenerating resources available toitand,consistent withsystemsecurity, sellorpurchaseeconomyenergy(whenappropriate todosounderprinciples ofeconomicdispatchandgoodsystemoperating practices) toorfromarequesting neighboring entityonabasisthatwillapportion thesavingsfrom,suchtransactions equallybetweenCompanyandsuchentity.Thisprovision shallnotbeconstrued topreclude arrangements foreconomyenergytransactions onaregionalbasisortorequireCompanyorneighboring entitytoforegoamoreattractive opportunity tosellorpurcnaseeconomyenergy.Company's obligations underthissectionapplyonlyastoneighboring entitieswhichagreetoassumereciprocal obligations toCompany.=VX.SHARINGOFINTERRUPTIONS ANDCURTAXLNENTS Companymayincludereasonable provisions i:nanvinter-connection agreement orcontractorscheduleforsaleofwholesale powerrequiring aneighboring entityorneighboring distribution systemtoimplement anemergency programforthereduction ofcustomerload,withtheobjective-thatCompanyandtheotherpartyshallequitably sharetneinterruption orcurtailment ofcustomerload,providedthatsuchprovisions areconsistent withCompany's generalemergency criteriafiledwithanyappropriate regulatory authorities.

Thisemergency programwouldprovideforauto-maticunderfrequency loadsheddingorforloadreduction bymanualswitching orothermeans,whenandtotheextentCompanyreasonably determines suchtobenecessary tomain-.taintheadequacyofbulkelectricpowersupplv-VII.ACCZSSTOST.LUCIZUNITNO-2(a)Companywillaffordtotheneighboring entitiesandneighboingdistribution svstemslistedbelowtheopportunity toparticipate intheownership ofSt.LucieUnitNo.2inthepercentage shareslistedbelow:Clewiston Ft.Pierce.193871.02793Fernandina BeachDivisionofFloridaPublicUtilities Company-45410Gainesville GreenCoveSpringsHomestead Jacksonville BeachKeyWestLakeHelenLakeWorth&mooreHa~enNewSmyrnaBeachOrlandoStarkeVeroBeach'FloridaKeysCooperative 2.09359..13011.44499..64538.74946.03121.89520.03382.403366.08951.119701.03963.79371 (b)Aspromptlyaspracticable, butnotlaterthan30daysaftertheseconditions takeeffect,Companyshalltrans-mit.totheentitiesdescribed abovecopiesof(i)thecon-struction permit.forSt.LucieUnitNo.2,(ii')theordersoftheNRCand'issubsidiary tribunals authorizing issuanceoftheconstruction permit,(iii)thefinalenvironmental impactstatement preparedbytheNRCStaff,(iv)thef'nalsafetyevaluation reportpreparedbytheNRCStaff,(v)astatement ofthecostsincurredforSt.LucieUnitNo.2throughthemostrecentdateforwhichanaccounting isthenavailable, (vi)Company's mostcurrentestimates ofthetotalcostofSt.LucieUnitNo.2(including estimates ofcashrequirements bycalendarquarterthroughthedateofcommercial operation) andthescheduleforcompletion ofconstruction tnereof,(vii)theparticipation agreement Comoanyhas'xecuted withSeminoleElectricCooperative, Xnc.(orifnosuchagreement hasbeenexecuted, themostrecentdraftofsuchagreement),

'(viii)Company's.

estimateofannualcapacityfactorsforSt.LucieUnitNo.2and(ix)Company's estimateofoperaingandmaintenance expensestobeassociated withSt.LucieUnitNo.2.Nosuchestimates shallbindCompany,andCompanyshallprovidesuchinformation ingoodfaith.Inaddition, Companyshallmakeavailable tosuchentitiesatCompany's officescopiesofthepre-liminarysafetyanalysisreportandenvironmental reportsubmitted byCompanytotheNRC.Companyshallrespondfullywithin30daystoreasonable requestsforadditional information receivedfromsaidentitywithin35daysofsaidentity'sreceiving thedocuments enumerated in(i)through(ix)ofthisparagraph.

IftheNRCfindsthattheCompanyhasfailedtorespondfullywithin30daystoanysuchxeasonable

requests, tneentityshallbeallowedtopaxticipate inaccordance withsuchtimescheduleastheNRCdeemsappropriate.

(c)Within120daysaftertransmittal oftheinformation enumerated inparagxaph (b),eachsuchentity.whichdesirestoparticipate inSt.LucieNo.2byownership shallpro-videCompanywithawrittencommitment (i)thatitintendstoparticipate inSt.L'ucieNo.2andtonegotiate ingoodfaithwiththeCompanyastothetermsofaparticipation nagreement, (ii)that,intheeventagreement isreachedas tothetermsofaparticipation agreement, itwillassisttheCompanyasrequesedinobtaining therequ'redapprovaloftheNRC,and(iii)thatitwillingoodfaithseektoobtainthenecessary financing foritsparticipation.

Suchcommitment shallbeaccompanied byapaymentequaltotenpercent(10%)oftheamountstatedpursuanttoparagraph (b)(v)multiplied bytheparticipation sharetowhichthecommitment applies(expressed asadecimalfraction)

.Uponreceiving suchpayment,theCompanyshallagreeinwritingItonegotiate ingoodfaitnastothetermsofaparticipa-tionagreement withtheentitieswhichprovidethewrittencommitments andpaymentsdescribed above.Suchwrittenagreement shallalsoprovidethatintheeventthattheCompanyfails-toexecute-the-participation.

agreement reachedbetweentheCompanyandsuchentityasprovidedinparagraph (d)below,eachsuchentityshallhavetherighttoiniti-ateanenforcement actionbeforetheHRC,andtoinitiateanactionagainsttheCompanyinanappropriate courtand/oragencyforanyreliefthatmayotherwise beavailable tosuchentityunderlaw.TheCompanyshallhavenoobliga-tionunderthissectiontoanyentitywhichfailstoprovidewithinthetimespecified hereinthewrittencommitment and paymentdescribed above,exceptasmayotherwise bepro-videdorintheseconditions orbeagreeduponinwritingbytheCompanyandeachsuchentity.(d)(1)Xf,within120daysafterproviding thewritten,commitments andpaymentsdescribed inparagraph (c),anyentitiesproviding suchwrittencommitments andpaymentsandtheCompanyagreeastothetermsofaparticipation agreement, theCompanyandsucnentitiesshallexecutetheparticipation agreement,,

andCompanyshallseektherequiredapprovaloftneNRCfortransferofanownership interesttosuchentity.Theparticipation agreement shallprovideforclosing60daysafterNRCapprovalofpartici-pation,conCzng'ant uponsuchentity'shavingobtainedthenecessary financing for-itsparticipation, atwhichtimeanownership interestwouldbeconveyedtotheparticipant, andtheparticipant wouldpayits(percentage) shareofallcostsincurredinconnection withSt.LucieUnitNo.2tothedateofclosing,lessanypaymentmadebysuchentitypursuanttoparagraph (c)hereof.(d)(2)XfNRCapprovalisnotobtainedorif,byadate60daysafterNRCapprovalisobtained, suchentityhasnotbeenabletoobtainthenecessary financing, thepaymentmadebysuchentitypursuanttoparagraph (c)shallberefundedbyCompanytosuchentity,andCompany shallhavenozurherobligation underthissectiontosuchentity.Notwithstanding theforegoing, ifanentityisunabletocloseatthetimespecified solelybyreasonofitsinability, despiteagoodfaitheffort,toobtainnecessary financing, suchenityshallbealloweda100-dayextension oftimeforclosing.If,forwhateverreason,itfailstoclosewithinthe100-dayextension period,Companyshallrezundtotheentitythepaymentmadebyitpursuanttoparagraph (c)andCompanyshallhavenofurther.obligation underthissectionto'uchentity;provided, however,thatifaproceed'ng withrespecttotheval'dityofobligations tobeissuedbytheentitytoobtainthenecessary financing ispendingbeforetheFloridaSupremeCourtattheconclusion ofthe100-.dayextension period,thensuchperiodshallbeextendeduntil60daysafterentryoafinaljudgmentinsuchproceeding.

(d)(3)Ifaneighboring entityorneighboring distribution systemeligibleforparticipation undertheseconditions isprevented frommakingthe105commitment paymentrequiredby'ectionVII(c)duetooperation ofastateorfederalstatuteorconstitutional provision orbecauseitisimpossible :ori"toobtainfundswithintherequiredtimeperiodthroughanyofthecommercial channelsordinarily available tomunicipalities tofinancepavmentsrequiredinadvanceofobtaining long-term financing (butexcluding inallinstances anyimpediment whichcanberemovedbyactionofthemunicipality with'ntherequiredtimeperiod),suchneighboring entitywillnotbeobligated tomakesucncommit-mentpayment;provided, however,thattheneighboring entityorneighboring distribution systemfailingtomakethecom-mitmentpaymentinrelianceonthisprovision shallhavetheburdenofestablishing inanyenforcement proceeding theexistence ofoneotheconditions specified hereinasabasisforbeingrel'vedoftheobligation tomakesuchpaymentandifitfailstodososhallhavenorighttoparticipation

~inSt.LucieUnitNo.2underthissection.(d)(4)lfanyentitydescribed inparagraph (d)(l)or(d)(2)doesnotclosebythetimespecified herein,foranyreasonotherthanfailuretoobtainNRCapprovalorfailuretoobtainthenecessary financing (havingmadeagoodfaithefforttodoso),Companyshallrefundtotheentitythepaymentmadebyitpursuanttoparagraph (c),andCompanyshallhavenofurtherobligation underthissectiontosuchentity. (e)(1)lf,within120daysafterproviding thewrittencommitments andpaymentsdescribed inparagraph (c),anyentitiesproviding suchwrittencommitments andpaymentsand~~Companyareunabletoagreeastothetermsofapartzcx-pationagreement, anysuchentitymaymakeawrittenrequesttoCompanythattheirdisputewithrespect,tothetermsoftheparticipation agreement besubmitted toarbitration.

Uponthemakingofsucharequestbyanysuchentity,Companyandeachsuchentityshallenterintoanagreement that,theabitration shallbefinalandbindingasbetweentheCompanyandsuchentity.Xfnowrittenrequestforarbitration ismadewithinthe120-dayperiodspecified inthisparagraph byanentitythatprov'dedthewrittencommitment andpaymentdescribed inparagraph (c),thepayment.madebysuchentitypursuanttoparagraph (c)shallberefundedbyCompanytosuchentity,andCompanyshallhavenofurtherobligation under.thissectiontosuchentity.Nithintendaysaterthemakingofanysuchrequest,-

Companyandallentitiesmakingsuchrequestsshallconferandattempttoagreeupontheappoint-mentofasinglearbitrator.

Xfsuchagreement isnotreached,eitnerCompanyoranysuchentitymayrequesttheAmer',can Arbitration Association toappointanarbitrator, whoshallbeanattorneywithknowledge oftheelectricutilityindustry.

Thearbitrator shallconductahearingtodetermine reasonable termsforthedisputedprovisions oftheparticipation agreement, givingdueregardtothecontextofparticipation agreements negotiated amongcompaablepartiesintheelectricutilityindustryandtheparticular businesssituation con-frontingCompanyandtheentitiesrequesting arbitration, andshallresolvealldisputesinaccordance withthis'sectionandthetermsoftheagreement toarbitrate;

provided, however,thattheprovisions proposedbytheCompanyastoitsliability totheotherparticipants, andastosharingthe-costofdis-charginguninsured thirdpartyliability,

-inconnection withthedesign,construction, operation, maintenance anddecommissioning ofSt.LucieUnit,No.'-2shallbeapprovedbythearbitrator unless-Ae determines thattheprovision pro-posed.bytheCompanyconstitutes anunreasonable proposalwhichrendersmeaningless theCompany's offerofparticipation inSt;LucieUnitNo.2.Thedecisionofthearbitrator shallbeI"/'nysuchliability provision shallnotbeintendedtorelieveCompanyoranyotherowneroftheplantfromanyliability whichitmayhavetoanythirdpartyunderanyfederal,stateorotherlaw,norshallsuchprovision providethebasisforanydefensebyCompany,oranyotherowneroftheplanoranyimpediment toordelayinanypayment,cost,expenseorobligation arisingfromaclaimoflia-bilitytoathirdpartymadeagainsttheCompanyoranyotherowneroftheplant.Totheextentthatsuchprovision concernsliability tothirdparties,suchprovision shallrelatesolelytosubrogation rightsasbetweenCompanyandparticipants.

renderedwih'n30daysoftheconclusion ofthehearing,unlesssuchtimeisextendedbyalloftheparties,andshallbefinalandbindingasbetweentheCompanyandeachsuchentity.Nothinghereinshallbeconstrued todeprivetheNRCofitsjurisdiction toenforcethetermsofthislicenseundertheAtomicEnergyAct.(e)(2)Promptlyafterthearbitrator rendershisdecision, theCompanyandanysuchentityshallexecutethepartici-pationagreement, containing thep'rovisions forsubsequent closing,described, inparagraph (d)(l),andCompanyshallseektherequiredapprovaloftheNRCfortransferofanownership interesttosuchentity.I'fanysuchentitydoesnotexecutethe,participation agreement,,

Companyshallrefundtotheentitythepaymentmadebyi;tpursuanttoparagraph (c)and,Companyshallhavenofurtherobligation underthissectiontosuchentity.IfCompanydoesnotexecutetheparticipation agreement, eachsuchentityshallhavetherighttor'eguesttheNRC'oinitiateanenforcement actionandtoinstitute anactionagainst,theCompanyinanappropriate courtand/oragencyforanyreliefthatmayotherwise beavailable tosuchentityunder:law.Uponexecution oftheparticipation, agreement, theprovisions ofparagraph (d)(2)shallapply.

{f)Zntheeventthatanyentitydescribed inparag=aph (a)hereofdoesnotparticipate intheownership ofSt.LucieUnitNo.2orparticipates intheownership ofSt.LucieUnitNo.2inanamountlessthantheamountprov'edforinparagraph (a)hereof,itshallbepermitted byCompanytotransferalloraportionofitsparticipation rightsunde"thissectiontoFloridaMunicipal PowerAgencyoranysuccessor thereof(together hereinafter referredtoas"CPA")ortoanyotherentityentitledtoparticipate undertheselicensecond'tions, providedthatFlPAorsuchotherentityagreestoassumeallofthetransferring entity'sobligations to~~Companyinconnection withthepartxczpat~on rightstransferred.

Unlessotherwise agreedtobyCompanyand'K.Ao>Aorsuchotherentity,innoeventshallFNPAorsuchotherentitybeentitledtoanygreateperiodsoftimeobligations underthissectionfortheperformance ofitsthM:itstransferor wouldhavebeenentitledtopriortothetransfer.

\(g)(1)Companymay,initsunilateral discretion, extend"hetimeforanyoftheactionsrequiredbythissectiontobethetakenbyanentitydesiringtoparticipate a.nSt.LucreUnitNo.2.Anysuchextension shallbeinwriting.Noextension permitted byCompanytoanyentityshallrequireCompanytoperm'.ur'tftherextensions oftimetosuchentityorsimilarextensions tootherentitzes.

(g)(2)Pnyentitywhichisnamedintheconstruction permitforFloridaPowersLightSt.LucieUnitNo.2(datedMay2,1977)andwhichelectstoparticipate

'nSt.LucieUnitHo.2pursuanttothissectiondoessoin1'euofanyparticipation rightsprovidedinthelicenseconditions contained intheconstruction permitasissued.(h)ZnnoeventshalltheCompanybeobligated toprovideparticipation inSt.Lu'cieUnitNo.2underthissectiontoanyentityunlessanduntiltheCompanyandsuchentityexecuteaparticipation agreement andsuchentitypaystheCompanyitspercentage shareofallcostsincurredtothedateofexecution oftheparticipation agreement inconnection withSt.LucieUnitNo.2.(i.)Companymayretaincomoletecontrolandactfortheotherparticipants withrespecttothedesign,eng'neering, construction, operation andmaintenance ofSt.LucieUnitNo.2,andmakealldecis'ons.relevant

'theretoinsofarastheydealwiththerelationship betweentheCompanyandtheotherparticipants, including (butnotlimitedto)decisions regarding adherence toNBChealth,safetyandenvironmental regulations, changesinconstruction

schedule, modification consentofanyparticipant..

Consistent withtheforegoxntheparticipation agreement shallprovideforanadvisorycommittee asavehicleforcommunication andconsultation orcancellation oftheunitandoperation atsuchtime.and/suchcapacitylevelsasitdeemsproper-,allwithout.theKgiamongalloft¹owners,andexceptwherethepublicinterest recuires'mmediaeunilatealaction,Companyshallpromptlyinformparticipants ofactionswhichmaymater'.a~ay az~ectthem.(j)Nothingcontained hereinshallprecludetheCompanyfrominstituting anactionagainstanyentity,withrespecttoitsparticipation orcommitment topaitic'pate inS'nSt.LucieUnitNo.2,inanappropriate courtforanyreliefthat.maybeavailable toitunderlaw.(k)AnyrezundmadebyCompanytoanventitypursuantto"hissectionsha'1beozthefullamountpaidbysuchentity.Companyshallno'tberequiredby.thissectiontopayinterestonanysuchrefund.(l)Anyentityshall,havetheright,subjecttoNRCapproval, tosellorotherwise alienateitsownership shareinSt.LucreUnitNo.2afterithastakentitletosaidownership sharetoanC'lectricutilitywhichagreestoandisfinancially qualifidioassumetheobligations ofthesellerwithrespecttoSt.LucieUnitNo.2.Anyrighttocontesttheprospective buyer'sfinancial qualifications willbewaivedbyCompanyunlessCompanyinformstheprospective seller,prospective buyer,anddtheNRCofCom-aanv'sobjections withinthirty(30)daysofCompany's receiptofnoticeoftheprospective sale.VIII.ACCESSTOFUTURENUCLEARPLANTSCompanywillaffordto:'(a)thoseneighboring entitiesandneighboring distribution systemsentitledunderanySt.LucieUnit2'icensecondit'ons toanyopportunity topar-'\ticipateintheownership ofSt.LucieUnitNo.2,and(b)toanyotherneighboring entityorneighboring distribution n)systemnotinexistence onJanuary1,1980,butwhichoperatesgeneration, transm'sion, ordistxibution facilities intheapplicable areaasothedatethataconstruction pemitissubmitted totheHRCbyCompany,theopportunity toparticipate intheownership ofallnuclearunitsforwhichtheCompanyfilesaconstruction permitapplication withtheNRCpriortoJanuary1,1990,provided, however,tha"noopportunity topar-ticipateneedbeaffordedtoanyneighboring entityorneighboring distribution systeminanamount,ifany,whichwould,intheaggregate, resultinitsowningnucleargenerating

capacity, orenjoyingdirectaccesstheretobyunitpowerpurchaseorpar-ticipation through,ajointagency,asapercentage ofitspeakloadinexcessofwhatCompany's percentofsamewouldbeaftertheadditionoftheproposedplant.Ifajointpoweragencyqualifies forpa"ticipation hereunder asaneighboring entity,itsnucleargenerating capacityandpeakloadshallbedeemedtobetheaggregate ofthenucleargenerating capacities andpeakloadsofitsmemberswithintheapplicable area,excluding anysuchmemberswhichelecttoexercisedirectparticipation rightshereunder.

Innoeventshallthislicensecondition beconstrued torequireCompanytoprovideownership interestinanysuchnuclearunitinatotalamountexceeding 20percentoftheCompany's inter-estinsuchunit.Whereownership

'nanuclearunitissharedbetweentheCompanyandoneormoreotherutilities, theCompany's, obligation hereunder withrespecttothatnuclearunitshallbeIreducedtotheextentthatanyutilitytowhichparticipation wouldbeaffordedunderthiscondition nasbeenaffordedanoppor-tunitytoobtainaccesstothenuclearunit,eitherdirectly

'.-22-orthroughajointagency.lX.WHOLESALE FTBl4PONERSALES(a)Subjec"tothelimitations conta'ned inpa'ragraphs (c)and(d),Company,upont'melyrequest,shallsellfirmwholesale poweronafullorpartialrequirements basisto(1)anyneighboring entityuptotheamountrequiredtosupplyelectricservicetoitsretailcustomers, tothosewnolesale customers whicharesuppliedbytheneighboring entityandwhichweresosuppliedon'January2,1979,andtothosewholesale customers whichwerepreviously suppliedbyCompanyandwhicharenowsuppliedbysuchneighboring entity,and(2)anyneighboring distribution systemuptotheamountrequiredtosupplyelectricservicetoitsretailcustomers.

Anysalesmadeundersubsection (a)(l)or()(2)abovemaybedecreased bythesumatanyonetimeof(i)powermadeavailable tosuchneighboring entityorne'ghboring distribution systemas'aresultofparticipation in{orpurcnaseofunitpowerfrom)oneofCompany's generating unitsand(ii)otherpowertransmitted tosuchneighboring entity.orneighboring distribution systembyCompany.(b)Forneighboring entitieswhichsupplypowertooneormoreneighboring entitiesorneighboring distribution systemseligibletodirectlyrequestserviceunderthiscon-dition,Companywillalternatively makesalestosuchsupplyin'g entitiestotheextentthatsuchservicewouldbeavailable underthepreviousparagraph (a)tosuchneighboring.

entitiesorneighboring distribution system(s),

!aI)~V-23-providedthatsuchsalescanbemadeontermsandcondi-tionswhichdonotexpandCompany's obligations tosupplywholesale powerbeyondthequantities otherwise re"erredtointh'ssection.(c)Companymayrequiresuchadvancenoticeofthe/intention totakeserviceandoftneserv'econtractdemandsasisreasonabl forCompany's powersupplyplanning, andmayimposereasonable limitat'ons upontheincreases insuchservicecontractdemands,provided%hatnosucnlimita-tionshallbeimposedtopreventaneighboring entityorneighboring distribution systemfromassumingaloadwhichhasbeenserveddirectlybyCompanyoraloadwhichCompanyhassoughttoserve.Companyshallnotestablish rates,termsorconditions (otherthantheadvancenoticeprovision described above)forthe:sale-offirmwholesale power.whichdifferentiate amongcustomers onthebasisofwhetherornotanentityhashistorically beenawholesale firmpowercustomeroftheCompany.(d)Companyshallnothaveanyobligation toprovide\wholesale powerto:(1)anyelectricutilitywhichezistedonJanuary1,1979,andwhichwasnotaneighboring entityorneighboring distribution systemasofthatdate;(2)anyruralelectriccooperative (ormembership corpoation)inaquantitygreaterthanthatrequiredtoservesuchcoopera-tive(oranydistribution cooperat'ive served.bysuchco-operative) forloadsintheareawh-chhashistorically beensuppliedatwholesale oratretailbytheCompany;or(3)aneighboring entitywnichonJanuary1,1979,ownsorcontrolselecricfacilities withnominalcapacityin excessof200Yiwe,providedthatthisitem(d)(3)shallnotrelievetheCompanyf"omthealternaiveobligation, providedinparagraph (b),tomakesalesoaneighboring entitywhichsuppliespowertoaneligibleneighboring entityorneighbor-ingdistribution systeminlieuofmakingsuchsalesdirectlytotheeligibleneighboring entityorneighboring distribution system.(e)Wholesale powersalesagreements shallnotrestrictuseorresaleofpowersoldpursuanttosuchagreements exceptasmaybenecessary toprotectthereliability ofCompany's system.Deliverypointvoltagesshallbeestablished consis-tentwiththeprovisions ofsectionII(b).Z.TRANSMISSION SERVICES(a)TheCompanyshalltransmitpower(l)betweenCompanypowersourcesandneighboring entitiesor'neighbor-ingdistribution systemswithwhichCompanyisconnected, (2)betweentwooamongmorethantwoneighboring

entities, orsectionsofaneighboring entity'ssystemwhicharegeographically separated, withwhich,nowo-inthefuture,=Companyisinterconnected, (3)betweenanyneighboring entitywithwhom,noworinthefuture,Companyisinteconnected andoneormoreneighboring distribution system(s) withwhom,noworinthefuture,itis.connected, (4)betweenanyneighboring entityorneighboring distribution system(s) andanyotherelectricutilityoutsidetheapplicable area,and(5)fromanyqualifying cogeneration facilityorsmallpowerproduction facility(asdefinedbytheFederalEnergyRegulatory Commission inl8CFRPart292,SubpartB)withwhichCompanyisinterconnected toaneig'nboring entityor iI1-25-neighboring distribution system,whereboththeownerofthequalifying cogeneration facilityandtheneighboring entityorneighboring distribution systemtowhichsuchtransmiss'on serviceisprovidedagreethatsuchneighboring entityorneighboring distribution systemwillmake,duringthetimeandtotheextentofitspurchases from,thecogeneration
facility, anysalesof"Backuppower"and"."maintenance power"(asthesetermsaredefined'inappl'cable PederalEnergyRegu-latoryCommission regulations) tothequalifying cogeneration facilityorsmallpowerproduction facility; provided.

howeverthatnothinginthisitem(5)shalldiminishCompany's obligations underSectionIXhereof.Companyshallprovidetransmission serviceunderthisparagraph onlyif(l)Company's andotherconnected transmission linesformacontinuous ej.ectric pathbetweenthesupplying andtherecipient systems;(2)permission toutilizeothersystems'ransmission linescanbeobtainedbytheproponent ofthearrangement; (3)theservicescanreasonably beaccommodated fromatechnical standpoint with-outsignificantly jeopardizing Company's reliability ori"suseoftransmission facilities; (4)reasonable advancerequestisreceived.

fromtheneighboring entityorneighboring distri-butionsystemseekingsuchservicestotheextentthatsuchnoticeisrequiredforoperating orplanningpurposes, providedtnatCompanydistributes awrittentimetable settingforthreasonable periodsoftimewithinwhichsuchadvancenoticemust,bereceivedfortransmission servicesoverexistingc'ompanyfacilities; and(5)areasonable magnitude, t'meanddurationfor-thetransactions isspecified priortothecommencement oftheItransmission. (b)Company's provision oftransmission serviceunderthissectionshallbeonthebas'swhichcompensates itforitscostsoftransmission reasonably allocable totheserviceinaccordance withatransmission agreement, transmission tarifforonanothermutuallyagreeable basis.Companyshallfilesuchtransmission agreements ortransmiss'on.

tariffswiththeFederalEnergyRegulatory Commission oritssuccessor agehcy.ZntheeventthattheCompanyandarequesting ent'tyareunabletoagreeregarding transmission servicesrequiredtobeprovidedunderthissectionX,Companyshall,upontherequestofsuchen'tity,immediately fileaserviceagreement attheFederalEnergyRegulatory Commission oritssuccessor agencyproviding forsuchservice.Nothinginthislicenseshallbeconstrued torequireCompanytowheelpowerandenergytoorfromare-tailcustomer.

(c)Companyshallkeeprequesting neighboring entitiesandneighboring distribution systemsinformedofitstrans-missionplanningandconstruction programsandshallincludethereinsufficient, transmission, capacityasrequiredbysuchentities, providedthatsuchentitiesprovidetheCompanysufficient advancenoticeoftheirrequirements andcontractinatimelymannertoreimburse theCompanyforcosts,asallowedbytheregulatory agencyhavingjurisdiction, appropriately attributable tocompliance withtherequest.However,Companyshallnotberequiredtoconstruct anytransmission facility(l)whichwillbeofnodemonstrable presentorfutureelectrical benefittoCompany,unlessthe facilitycannotreasonably beconstructed bytherequesting entitysolelybyreasonoftheCompanv's unreasonable reusaltograntaneasementozlicense,orrefusaltocooperate inremovingimpediments tothesitingofanysuchtransmission

facility, (2)whichwouldjeopardieCompany's abilitytofinanceorconstruct, onreasonable terms,facilities tomeetitsownanticipated systemrequirmentsortosatisfyexistingcontractual obligations tootherelectr'.svstems,or(3)whichcouldreasonably beconstructed bytherequest.'ng entitywithoutduplicating anyportionofCompany's transmission system.Insuchcaseswhere,Companyelectsnot,toconstruct transmission facilities, tnere-questingsystemshallhavetheoptionofconstructing andowningsuchfacilities andinterconnecting themwithCompany'faci.liti;es.

Forthepurposesof.sectionX,upgrading presenttransmission facilities shallbeconsidered.

alwaystohavesomedemonstrable presentorfutureelectrical benefittoCompany.(d)Notwithstanding theforegoing, Companyshallnotdeclinetocooperate intransmitting powerproducedfromanyneighboring entity's(including FHPA's)orneighboring dis-tribution system'sownership share,ortheownership shareofanyotherFloridaelectricutilityforwhichCompany's transmission systemisnecessary todeliversuchpower,oftheAlvinW.VogtleNuclearUnitsfromapointorpointsofinterconnection betweenCompanyandGeorgiaPowerCompanytopointsofconnection described in(a)hereozbetween

~'l-28-Companyandotnerutilities.

Thiscondition shallnotbeconsuedtoreauireCompanytoconstruct transmission facilities withinheStateofGeorgia.Companyshallnotbeprecluded fromrequiring suchneighboring

entities, neighboring aistr~-~0butionsystemsandotherutilities tomakereasonable finance.al arrangements topayfortheconstruction ofthoseportionsoffacilities tobeutilizedbvthemandwhichareconstructed fortnispurpose.ZZ-ACCESSTOPOOLINGARRANGEMENTS Companyshallsponsorthemembership ofanyneighbor-ingentityinanypoolingarrangement towhichCompanyispresently apartyortowhich,duringthetermofthis.license,Companybecomesaparty;provided, however,thattheneighbor-increntitysatisfies membership aualifictionswhicharereasonable andnotundulydiscriminatory.

TotheextentthatCompanyenters'ntopoolingarrangements duringthetermofthelicense,itshalluseitsbesteffortstoincludeprov'isions thereinwhichpermitrequesting neighboring entitiestheopportunity toparticipate inthearrangement onabasisthatisreasonable andnotundulydiscriminatory.

XZZ.JURISDICTION OFOTHERREGULATORY AGENCIESRateschedules andagreements, asrequiredtoprovideforthefacilities andarrangements neededtoimplement thebulkpowersupplypoliciesherein,aretobesubmitted bytheCompanytotheregulatory agencyhavingjurisdiction tnereof.TheCompanyagreestoincludeaprovision innewrateschedulesubmissions associated withtheselicensecorditionstotheeffectthat,itheratesbecomeezectivepriortotheresolution ofcontested issuesassociated witnthenewrateschedules andarethereazter reducedxnaccordance withtheregulatory proceedings andfindings, appropriate refunds(including interest) wouldbemadetoretroactively rezlectthedecrease-XIII.Ii~fPLEMENTATION (a)Theselicenseconditions donot,precludeCompanyfromseethingsuchchangesinthesecondiions,including butnotlimitedtosectionVIII,as'maybeappropriate inaccordance with'thethenexistinglaworfactualsituation.

(b)Theseconditions donotprecludeCompanyfromofferingadditional wholesale power,.accesstogenerating unitsorcoordination servicestootherelectricentities.

(c)Nothinghereinshallbeconstrued toaffectthejurisdiction ofFZRCoranyotherregulatory agency.

ATTACHMZ'NT A~lcHH~1iI~I0C0IA'Qc~T15'T~'(..ravcw:j;.ccFLORIDAPOWER8(LIGHTCOSERVICEAREAAUGUST1979LEGENDAACASWHCSCTTLCNOAOCSINOCHCAATION, TAALSUISSION OhDISTAISUTICH 04CLCCTAIOSOWCS,C1AOSTIOH'5 OfCLCCTAIOCOOACAATIVCS'CAVCC AACA5WHICHUttHO<<<<thOCNthATCD SYTSL~ICLAY2t(OAIDAKCTS5OLAOCS4LtcCOUNTY5OACTCNOAC 4TCAOChlfthTSUWANNCCVLLLCYCITICSWHICHAhtHCIOHSOAINO CHTlfltS,ON

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c""<<,".M(.:~"c-3()~S.Ir(yI41<'~"3.l:~~~0I0'gI"acIc<<,~w,7,(,",jI~<~QLc.MP+<<.r.?I~i,cql)V.j'P4IccC~c~~c~c:.-:)I-r~)'lcc"(4.1'LU~~,IgNI,L<<~'llcIg,I(~ir~a~:gg;

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APPENDIXDExcerptsfromMay12,1981Deposition ofMarshallMcDonald, FloridaPower6LightCompany,inGainesville ReionalUtilities, etal.'v.FloridaPower6.Liht,Coman,DocketNo.79-5101-CIV-JLK UNITEDSTATESDISTRICTCOURTFORTHESOUTHERNDISTRICTOFFLORIDATHECITYOFGAINESVZLLE ANDTHEGAINESVILLE-ALACHUACOUNTYREGIONALUTILITIES BOARDSTHELAKEWORTHUTILITIES AUTHORITYI THEUTILITIES COMMISSION OFNEWSMYRNABEACH,THESEBRZNG'TILITIES COMMISSIONS THECITIESOFALACHUAIBARTON,'FORTMADE,HOMESTEAD, KZSSIMMEE, MOUNTDORA,NEWBERRY, SAINTCLOUD,STARKEandTALLAHASSEE'LORIDAI Plaintiffs, vs010FLORIDAPOWERANDLIGHTSDef'endant.

1213CASENO.79-5101-Civ-JLK 414.15169250WestFlaglerStreetMiami,FloridaTuesday,May12,198117182021DEPOSITION OFMARSHALLMcDONALD.takenbeforeGAILABRAMSON, CourtReporterandNotaryPublicinandfortheStateofFloridaatLarge,pursuanttoNoticeofTakingDeposition filedinthe-above-styled cause.222420NEVI'ORKliCOUAYST.SpoorWN.ll.Y.NATIONALREPORTING SERVICEMARTYLESHAWClYTlClAt CQUllTQPPAll'tPS2 MIAMI44W.ILACLfllST.

~~I~Doesshealsohavethejobofinsuringcompliance withthesepolicies, oristhatpartofanother.organization?

1",'.Sheistheonewhohasestablished policiesfor>II2iretention ofthenecessary legalretentions ofdocumentation.

<IIIWell,shehastheresponsibility

.ofthedocumentary filesandsoshehastheresponsibility totheir-Thatwouldincludedetermining whetherthepolicyshehasstated.are,infact,beingeffected?

Yes..10Now,thepolicythatshehas,hassheissuedpolicy-you'esuggesting shehasissuedthepolicy,ordoyouknowwhethershehas?'3Zamnot'-.sure.

Xthinkso.Wouldyouhavehadtoapprove-anysuchpolicy?Not.necessarily.

Xntheperiod.sinceyoucametoFPaL,doyouknowifFPSLhas-discarded-ordestroyed anydocuments relatingtodealingswiththecities?192021No,X.don'tknow.Whatwouldyouhave.doneif.Xsaid.yes?Saidvoumeant.to.sayno,MrMcDonald; didn.'tyou?22Easanyoneeverdiscussed withyouthepolicyof24discarding orotherwise disposing afdocuments inrelationtoanantitrust compliance program?20NoHEWYORK$0COVETST.NATIONALREPORTING SERVICEMARTYI.ESHAW' 1~iI;19l~)destroying ordiscarding-Doyouknowifthecompanyhaseverconsidered

'I>a.~Isi31Who'sthecompany?FP&LMho'sthecompany?Anyone-elseinthecompany.Xhavenowayofknowingwhateveryoneelseinthecompanymighthaveconsidered atanypointintimeaboutany1012subject..kQ.Okaydoyou.knowifcounsel.for:thecompanyeverdiscussed with.anycompanyofficials thepossibility ofdisposing,,

destroying,.

orotherwise gettingridofdocuments?'

amnot;aware.ofthatAreyoufamiliarwiththefindingsoftheFifth.'ircuitCourtintheGainesville casein.1978?L..Yes..MRGRIBBON:Youmeanthewhole,opinion?181920=--212223MR..GUTTMAN:X.'m;going,toaskhimaspecific-(ByMr.--.Guttman)

You,readthecase,I'msure?"LX;read'-'he case..9,TheFifthCircuitin-thatcasefoundthatthe.kevidencecompelled thefindingthatFPaLwaspartofa'onspiracy, soyouareawareofthat;correct?.

Youarenotnodding,butXtakethat-I'mglaring.NEVIYORKIdCOURTST.NATIONALREPORTING SERVICEMARTY(FRHAW MR.GRIBBON:WhattheFifthCircuitheld,wecan'tdoanythingabout.3MR.GUTTMAN:I'mnotgoingtobeatupthewitnessinlightofthatholdingandheisnotgoingtobeatmeupeither.Q.(ByMr.Guttman)Inlightofthatfinding,.

whatspecificaction,ifany,haveyou.takentoinsureFPsL's.compliance withthe,antitrust laws?I'mnotawarethatwehave.everbeenguil.tyof10infringing anyantitrust laws.129,Inyour.view.,theFifthCircuitholdingin1978was-notafinding.thatFP&Lhad-infringed onanyantitrust 13laws?Inmyopinion,theviewsoftheFifthCircuitwereincorrect.

The.viewsofthejurywhoactuallysawtheevidence18observedthewitnesses, wascorrect.0,Preserving yourdisputewiththeFifthCircuit,in19lightoftheirholding,,

what;specificaction,ifany,have202122youtakentoinsureFPSL'scompliance withtheantitrust laws'I'mnotawarethatwehavenotbeencomplying withtheantitrust laws.Haveyouever,asheadofFP&L,takenanyactionorengagedindiscussions toinsurethatthecompanystaysinNEWYORKNATIONALREPORTING SERVICE I~1ll'lllIIIIit')Icompliance withtheantitrust laws,ifthatisthepremise.Yes,sir.Xhaveneveragreedthatthereisanyobligation tosharetheoutputofournuclearplants,butsincethereisatheorythatthereisone,atthetimethatwedidnotacceptapax'ticipation intheSouthDadePlant;VXdirectedMr.QardnerandMr.DanesetooffertotherestoftheStateallthatXcouldspeculate thatthisotherpositionmightencompass whichwasourabilitytofindasiteforaplant.,licensethatsiteandconstx'uct theplantandtooffertheseservicesatareasonable servicefeetotheotherelectrical systemsinthe.State.12XnadditiontotheCentral,Floridaproject:,

ifwe.canrefertoitbythatname,whatotheractionhaveyoutakentoinsureorpreserveyourcompliance withtheant-trustlaws?XhavehadnotargettoaimforbecauseXdonot18believethatwehaveinfringed on,anyantitrust laws.Q.DoesFPaL,haveanyprogramorsimilartypeof19activityunderdifferent namesbywhichitinstructs its2021employees astowhat.theantitrust lawsareandwhat.obligation thecompanymighthave?22Xdon'tthinkso.Now,thisalsomaybeacauseforaglare,butthisis-please,fortherecord,atfootnote14attheGainesville decisionwhichyoumayrecall,theofficials ofthepowerNEWYORK14COVRTST.'ATIONALREPORTING SERVICEMARTYICCM&'w Thenthecourtgoesontosay,"Nheresuchtesti-companies denytheexistence ofaterritorial agreement.

llI~)I3monyisinconflictwithcontempraneous documents, wecangiveitlittleweight."Doyourecallreadingthat?I'msureIreadit.Idon'recallit.DoyourecallOpinionNo.57,theFederalPower10Commission?

Xtwasadecisioninthecasewherethecompanysoughttoreviseitstariff.Doyou.recallanyopinion-.doyourecallin1977thecompanysoughttolimiteligibility underitstariff?12Doyourecallthat?Iseemtorecalltherewassomething likethat,Mr.Guttman,butXdon!t.know.Xdon'trecallanyspecifics aboutit.g.Ifthere-wassomething likethat,wouldyouhave)beenapprisedofitorrequiredtoapproveit?18No'92021222425MR..GRIBBON:Approvethedecision?

MR.GUTTMAN:Approvethefiling.Xwasreferring tothefiling.THEHXTNESS:.

Toapprovethefiling?(ByMr.Guttman)Yes,thedecisiontofile.No,Iwouldn'thavehadtoapprovethat.Whowouldhavehadtheauthority toapproveit?MEVIYORK)5COVINST.NATIONALREPORTING SERVICEMARTYLESHAM)

Idon'treallyknowwhohadtheauthority to1lfapproveanychangesinFERCfilings.I'gIfyoulookattheorganization chartswhichwejustdiscussed, theonein'76or'79,becausethefilingsmadein'77or'7&-That:thingmakesmyeyesbuggy.Whatboxesintheorganization chartwouldhavehad'heauthority tofinallyapprove-tomakethefinalapprovement tochangethetariffattheFederalCommission?

10Well,Lloyd,Williams,,

DirectorofRatesandResearchreportedtoJohnHudiberg.

12Q.Soinl977,'78,wouldMr.Hudiberghavebeenthe.onetohavefinalauthority toapprovethefilingofthetariffchangebeforethePowerCommission?

Itdependson.thepowerhedelegated toMr.WilliamDoyourecall;-youtestified intheVeroBeach17181920212220casebeforetheFederalPowerCommission; isthatcorrect?Iseemtohavehadthatcalledtomyattention bysomeofthepleadings.

Doyourecallthedecisionissuedbythejudgeinthatproceeding?

LNo,Ireally.don'.LetmequoteItwasFebruary6th,l978decisi'on.

byJudgeMcGowan.HestatedthatFP&Lpresented attimesreluctance andlessthancandidtestimony.

NEVEYORKISCOUNTSl'.NATIONALREPORTING SERVICEMARTYICCI40IV Doyourecall--qlA.recallhiscomment.Idon'rememberbeinglessthancandidandIdon'Well,inviewofthe-X.'mnotaskingifyouagreeibutinviewofwhattheGainesville andtheJudgeMcGowan's opinionstated,whataction,ifany,haveyoutakentoinsurethatthetestimony ofFPGLinofficialproceedings isaccurateandcomplete?

Ihavenoreasontobelievethattheyhavenot.10atalltimesbeenaccurate.and complete".

12g.DoyouknowifinanyopinionbeforetheFederalPowerCommission inthelasttwoorthreeyears,theCommis-13sioncharacterized thecompany's testimony as"incongruance withthedocuments

"?No,Iamnot.awareofthat.Wouldthatbesomething thatwouldconcernyou?IfI.believed-'.it;.

181920Woulditlikely:bebrought.toyourattention?

Notnecessarily.

Have-youreadthepleadings inthe.currentcase21whereyourcounselisseekingtodismiss-the.motionofTalla-hassee-excuseme..Tallahassee requests.to-Imayhavereadit,butIdon'trecallit.Wouldyoucharacterize FP&Lasaunique,innovative, resourceful orrisk-taking company?NEVIYORK*lOCOUAfST.NATIONALREPORTING SERVICEMARTYLESHAWMIAMI BEFORETHEUNITEDSTATESNUCLEARREGULATORY COMMISSION BEFORETHEATOMICSAFETYANDLICENSING APPEALBOARDInTheMatterOfFloridaPower8Light.Company(St.LuciePlant,UnitNo.2)DocketNo.50-389-OL Date:7/2/81CERTIFICATE OFSERVICEIherebycertifythattheforegoing was-servedonthefollowing personseitherbyhanddelivery(*)orbyUnitedStatesmail,firstclass,postageprepaid,this2nddayofJuly,1981'haseStephens, Chief(*)Docketing 6ServiceSectionNuclearRegulatory Commission Washington, D.C.20555Elizabeth S.Bowers,Esq,,ChairmanAtomicSafety&,Licensing Board,NuclearRegulatory Commission Washington D.C.20555Dr.PeterA.MorrisAtomicSafetySLicensing BoardNuclearRegulatory Commission Washington, D.C..20555Dr.OscarA.'arisAtomicSafetySLicensing BoardNuclearRegulatory Commission Washington, D.C.20555FloridaPowerRLightCompanyATTN:Dr.RobertE.UhrigVicePresident AdvancedSystemsSTech.-PEO.Box529100Miami,Florida33152CounselforNRCStaffOfficeoftheExecutive LegalDirectorNuclearRegulatory Commission Washington, D.C.20555HaroldF.Reis,Esq.Lowenstein, Newman,ReisAxelrad1025.Connecticut Avenue,Washington, D.C.20036.NWGeorgeR.Kucik,Esq.MareGary,Esq.>Arent,Fox,Kintner,PlotkinSKahn1815HStreet,N.W.Washington, D.C.20006AlanS.Rosenthal, Esq.ChairmanAtomicSafety6zLicensing AppealBoardNuclearRegulatory Commission Washington,,

D.C.20555Dr.JohnH.BuckAtomicSafety8Licensing Appea1BoardNuclearRegulatory Commission Washington, D.C.20555Christine Kohl,EsquireAtomicSafety6Licensing AppealBoardNuclearRegulatory Commission Washington, D.C.20555 HerbertDym,Esq.Covington 8Burling88816thStreet,,N.W.Washington, D.C.20006July2,1981RobertA.ablon,EsquireAttorneyfortheGainesville RegionalUtilities, theLakeWorthUtilities Authority, theUtilities Commission ofNewSmyrnaBeach,theSebringUtilities Commission, andtheCitiesofAlachua,Bartow,FortMeade,Homestead, KeyWest;Kissimmee, MountDora,Newberry, St.Cloud,Starke,andTallahassee, Florida.LawofficesofSpiegel8McDiarmid 2600VirginiaAvenue,N.W'ashington, D.C.20037(202)333-4500 I,PIl