ML18018B082
| ML18018B082 | |
| Person / Time | |
|---|---|
| Site: | Nine Mile Point  |
| Issue date: | 07/26/1978 |
| From: | Sims J US Dept of Justice, Antitrust Div |
| To: | Shapar H K NRC Office of the Executive Legal Director (OELD) |
| References | |
| Download: ML18018B082 (8) | |
Text
REGULATORY-INFORNATIONDlSTRIBUTIONSYSTEN(RIDS>DISTRIBUTIONFORINCOMINGNATERIAL50-410REC:SHAPARHKNRCORG:SINSJUSDEPTOFJUSTICEDOCDATE:07/26/78DATERCVD:08/01/78DOCTYPE:LFTTERNOTARIZED:NOCOPIESRECEIVED
SUBJECT:
LTR1ENCL0RESPONSETONRCREQUESTFORADVICEPURSUANTTOECTION105OFTHEATONICENERGYACT.ASAMENDED.REREVISEDAPPLBYAPPLICANT"SASLISTED...ADVISINGTHATNOANTITRUTHEARlNGBYNRCWILLBEREQUIREDWITllRESPECTTOAPPL.PLANTNAME:NINEMILEPOINT-UNIT2REVIEWERINITIAL:XJNDISTRIBUTORINITIAL:~+++++++++++++++>+DISTRIBUTIONOFTl-IISMATERIALISASFOLLOWSANTITRUSTINFORNATION(DISTRIBUTIONCODEZ999)FORACTION:ASSTDIRVASSALLO+~~LTRONLY(1)BRCHIEFLWRN4BC<<LTRONLY<1)PROJKANE+4~LTRONLY(1)LICASSTLWRQ4LA>>LTRONLY(i)INTERNAL:EXTERNAL:REGFIE+LTRONLY(1)RONLY<i)RUTBERG++LTRONLY(3>LPDRSOSWEGO'Y<+LTRONLY<1)TERA~~LTRONLY(i>NSIC++LTRONLY<1)ASLB+4LTRONLY(2)ACRSCATB>+LTRONLY(0)NRCPDR++LTRONLY(i>SALTZNAN4+LTRONLY<1)DISTRIBUTION:LTR16ENCL0CONTROLNBR:782140079SIZE:3PTHEEND kl'
'AtG7ISmtAStatt5Qeymtmmtnfpustio.WASHINGTON,DO.)fSSlIImppm'44IIIIIPgfI(IPyASSISTANTATTORNEYGSNSRAI.IANTITRUSTOIVISION-,.!.I,lIIt,SvHowardK.'hapar,EsquireExecutiveLegalDirectorNuclearRegulatoryCommissionWashington,D'.C."20555Re:NineMi3;ePointNuclearNRCDocketNo.50-410AJUL26t878.'I1CAStation,Unit2I'~)4>>~I&~gIS
DearMr.Shapar:
YouhaverequestedouradvicepursuanttoSection105ofthe.AtomicEnergyAct,asamended,inregardtotherevisedapplicationbyNiagaraMowhawkPowerCorpor-ation,LongIslandLightingCompany,NewYorkStateElectric&GasCorporation,RochesterGas&ElectricCorporationandCentralHudsonGas&ElectricCorpora-tiontoconstructtheNineMilePointNuclearStation,UnitNo.2.In1972theDepartmentofJusticereviewedtheoriginalapplicationfortheNineMilePointNuclearStation,Unit2submittedbyNiagaraMowhawkPowerCorporation(NiagaraMowhawk).OnDecember19,1972,weinformedyourpredecessorCommissionthattheactivitiesproposedunderthatapplicationwouldnotcreateormaintainasituationinconsistentwiththeantitrustlaws.OnSeptember22,1975,NiagaraMowhawkenteredintoaBasicAgreementwithLongIslandLightingCompany(LILCO),NewYorkStateElectric&GasCorpora-tion(NewYorkState),RochesterGas&ElectricCorpor-ation(RG&E)andCentralHudsonGas&ElectricCorporation(CentralHudson),tobuild,ownandoperatetheNineMilePointNuclearStation,Unit,2onajointbasis.Eachparticipant'sshareoftheexpensesandenergyoutputisasfollows:NiagaraMowhawkLILCONewYorkStateRG&ECentralHudson41%18%18%14%9$
V4Jk',r'I.lILAn)l NineMilePointNuclearStation,Unit2ispro-posedtobebuiltonasiteonthesoutheastshoreofLakeOntario,inOswegoCounty,NewYork.Thisloca-tionispresentlythesiteofNiagaraMowhawk'sexistingnucleargeneratingfacility,NineMilePointNuclearStation,Unit1.Thelatestcostestimates(notincludingallowancesforfundsusedduringconstruction)forthecompletionofthefacilityareasfollows:Totalnuclearproductionplantcosts$1,018,335,000Transmission,distributionandgeneralplantcosts7,559,000Nuclearfuelinventorycostsforfirstcore71,474,000TOTALESTIMATEDCOSTS$1,097,368,000Thisfacilitywillbecapableofgenerating1100MWofpowerandisscheduledtobeinserviceinNovember,1982.EachofthenewapplicantshasbeenthesubjectofpriorantitrustadviceletterswrittenbytheDepart-ment.OnApril22,1976,werenderedantitrustadviceonanapplicationbyCentralHudsontoparticipateintheSterlingPowerProject,NuclearUnitNo.l.OnJanuary7,1975,werenderedantitrustadviceonanapplicationbyLILCOtoconstructtheJamesportNuclearPowerStation,Units1and2.RGaEwasthesubjectofantitrustadvicelettersofDecember27,1974,andApril22,1976onanapplicationtoconstructtheSterlingPowerProject,NuclearUnitNo.1.Mostrecently,onJanuary26,1978,werenderedantitrustadviceconcerningNewYorkStatewithrespecttoitsapplicationstoparticipateintheJamesportNuclearPowerStation,Units1and2.WealsorenderedantitrustadviceonDecember27,1974,onNewYorkState'sapplicationtoconstructtheSomersetNuclearStation,Units1and2.Ineachoftheabove-referencedantitrustadvicelettersweadvisedofourconclusionthattheactivitiesunderthelicensesappliedforwouldnotcreateormaintainasituationinconsistentwiththeantitrustlaws.SincethelastantitrustadviceletterswerewrittenforeachofthenewapplicantsonlyLILCOhashadachangeinitsoperationswhichmeritnotation.
4~>rkI4 InApril,1978,theGreenportNewYorkMunicipalElectricSystem,whichuntilthattimehadbeeniso-lated,interconnectedwithLILCO.TheGreenportsystemhasapeakofabout3MW.Inaddition,Greenport,aswellasFreeportandRockvilleCentre,theonlytwoothercomparativelysmallmunicipalutilitiesinLILCO'sservicearea,haveobtainedcommitmentsfromthePowerAuthorityoftheStateofNewYork(PASNY)tosupplytheirbulkpowerneeds.LILCO,aswellasotherinvestor-ownedutilitiesintheStateofNewYork,haveagreedtotransmitthatpowerfromthePASNYtransmissionsystemtothethreemunicipalsystems.Afterexaminationofthecurrentapplicationsandreviewoftherelevantdata,wehaveconcludedthatnointerveningcircumstanceshaveappearedtowarrantareversaloftheadvicegivenwithrespecttoeachofthenewapplicantsintheabove-citedantitrustletters.Weexpressnoopinion,however,concerningthelegalityundertheantitrustlawsofthemannerinwhich,orany.arrangements.pursuanttowhich,theplantswillbeoperated,shouldtheydifferfromorextendbeyondthosemattersspecificallydisclosedintheapplication.Accordingly,fromtheinformationavailabletousatthepresenttimeweconcludethatnoantitrusthearingbytheNuclearRegulatoryCommissionwillberequiredwithrespecttothisapplication.Sincerelyyours,oeSimsDeputyAssistantAttorneyGeneralAntitrustDivision
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