UNITED STATES OF AMERICA NUCLEAR REGULATORY COMMISSION

Transcription

.UNITED STATES OF AMERICANUCLEAR REGULATORY COMMISSIONIn the Matter of:Texas Utilities GeneratingCompany(Comanche Peak Steam ElectricStation, Units 1 and 2))))))))Docket Nos. 50-445A50-446AANSWER OF TEX-LA ELECTRIC COOPERATIVE, INC.,TO TUGCO'S MOTION TO DISMISS CSW AS APARTY INTERVENOR OR, IN THE ALTERNATIVE, FORSUMMARY DISPOSITIONThe Texas Utilities Generating Company, et al. ("TUGCO") ,motion seeks to dismiss Central and South West Corporation ("CSW").-as a party in this case or, in the alternative, the motion seeks" summary disposition in favor of TUGCO and against CSW . ."Asto the effect of the motion and the federal district court case ofWest Texas Utilities Company and Central Power & Light Company v.Texas Electric Service Company and Houston Lighting & Power Company,F.Supp.(N . D . Tex. 1979), No. C.A.3-76-0633-F, on Tex-La,TUGCO appears to be uncertain because the motion says:"The districtcourt decision may be conclusive against Tex-La and the Departmentof Justice . ."(Motion at 23.) (Emphasis added.)AlthoughTUGCO is uncertain as to the effect of the court decision on TexLa, we have no such hesitation.L:e court case has no effect onTex-La since the cooperatives in East Texas were not parties to thecourt case and the factual situation between Tex-La and the appliCcant varies substantially from the factual situation 22b TeV6 4W,.7906040 /4 7f@

.-2and the applicant.Because of the dissimilarity of parties anddissimilarity of facts, the district court judgment does not operate as res judicata.Parklane Hosiery Co. v. Shore,U.S.,58 L.Ed. 2d 552, 47 U.S.L.W. 4079 (January 9, 1979).The motion makes an outrageous accusation that Tex-La and itsmember cooperatives are "a surrogate" of Central and South West.The motion contends that this proceeding should not "go forward"because to do so would " allow CSW to accomplish through a surrogatewhat it cannot accomplish directly."(Motion at 23.)The factsinvolving Tex-La's future plans for bulk power supply discredit thesurrogate allegation and show that the Texas cooperatives are notbound by the district court decision.Tex-La and its Texas member cooperatives 1/ are purchasers ofi-power at wholesale from Texas Power & Light Company ("TP&L"), GulfStates Utilities Company ("GSU") , Community Public Service Company(" CPS"), the Southwestern Electric Power Company ("SWEPCO"), and theSouthwestern Power Administration (" SWPA") , an agency of the Department of Energy.Tex-La and its Texas member cooperatives purchasein excess of 650,000 Kw of power and energy annually from thesepower suppliers.In 1977, TP&L alone supplied Tex-La and its1/ Cherokee County Electric Cooperative, Deep East Texas ElectricDooperative, Fannin County Electric Cooperative, Farmers ElectricCooperative, Grayson-Collin Electric Cooperative, Houston CountyElectric Cooperative, Hunt-Collin Electric Cooperative, JasperNewton Electric Cooperative, Kaufman County Electric Cooperative,Lamar County Electric Cooperative, New Era Electric Cooperative,Rusk County Electric Cooperative, Sam Houston Electric Cooperative,Wood County Electric Cooperative, Bowie-Cass Electric Cooperative,Upshur Rural Electric Cooperative, Panola-Harrison Electric Cooperative.2259 065-. .

.-3members with approximately 225,000 Kw of firm power.The Texasmember cooperatives of Tex-La currently serve more than 220,000consumers within the State of Texas.With these existing respon-sibilities and the load growth expected to be encountered in thenear future, the interest to be protected here is to ensure thatTex-La and its members are not restricted in any way from access tobulk power supplies from interstate or intrastate sources.The intrastate-only mode of operation, if allowed to continue,.will have a greater impact in the future on the Texas cooperativesthan at present because of the organizational transition underwayThe Texas cooperatives are beginning to leaveby the cooperatives.the distribution-only phase of power supply, and are entering intogenecation and transmission functions.'-Thus, the cooperatives haveformed or are forming three generating and transmission cooperativecorporations as follows:Two of the Tex-La members, Sam HoustonElectric Cooperative and Jasper-Newton Electric Cooperative, aremembers of the Sam Rayburn Dam Electric Cooperative, a generationand transmission cooperative ("G&T") , which is near the end ofnegotiations with Gulf States Utilities Company to own a portion ofRiver Bend No. 1, a nuclear generating station, and Nelson No. 6, acoal-fired generating station.The second G&T is North East TexasElectric Cooperative, which is comprised of six distribution cooperatives, 2/ who are negotiating with the Southwestern Electric2/ Bowie-Cass Electric Cooperative, Panola-Harrison Electric Cooperative, Deep East Texas Electric Cooperative, Wood County Electric Cooperative, Upshur Rural Electric Cooperative, and RuskCounty Electric Cooperative. Three of these cooperatives--Deep East,Wood County, and Rusk County--also purchase power from TP&L.2259 066--

-4Power Company for co-ownership of the Pirkey Plant, a coal-firedgenerating station.The third G&T to be formed by the Tex-Lamembers will be known as the Tex-La Electric Cooperative of Texas,and will be comprised mainly of those distribution cooperatives whoThe intrastate-only mode of oper-purchase power only from TP&L.ation bars these three G&T cocperatives from coordinating and willprevent them in the future from exchanging power, with the resultbeing that the three G&Ts will operate as isolated islands withinthe service territory of Texas Power & Light Company.In addition,the cooperatives whose wholesale power supply is provided solely byTP&L will be unable to receive out-of-state alternative bulk powersupplies and therefore will continue to be solely dependent onTP&L.' Thus, the members of that new G&T will be prevented, forexample, from receiving federal hydroelectric power from the Southwestern Power Administration system, and, therefore, unable toexercise their preference rights under section 5 of the FloodControl Act of 1944, 16 U.S.C. 825s.In short, as a consequence ofthe intrastate-only mode of operation, the Texas cooperatives wouldbe barred from lowering power costs through exchanges of poweramong the three generating and transmission cooperatives, and fromreceiving lower cost power from out-of-state sources.This is aharm unique to the cooperatives and a harm which certainly cannotjustify a lable of surrogate.2259 067-.--.-

.-5WHEREFORE, for the reasons stated above, and for the reasonsset forth in the pleadings of Staff and the Department of Justice,the TUGCO motion should be denied.Respectfully submitted,9dN.4ALaw Offices of Northcutt ElyFrederick H. RittsWilliam H. BurchetteWatergate 600 BuildingWashington, D.C. 20037(202) 337-0200Attorneys for Tex-La ElectricCooperative, Inc.April 23, 1979t-2259 068.----

,. ."CERTIFICATE OF SERVICEI hereby certify that a copy of the foregoing Answer ofTex-La Electric Cooperative, Inc., to TUGCO's Motion to Dismiss CSW as a Party Intervenor or, in the Alternative, for Summary Disposition has been served on each of the following personsby deposit in the United States mail, first class postage prepaid, this 23rd day of April 1979.Samuel J. Chilk, SecretaryU.S. Nuclear Regulatory CommissionWashington, D.C.20555Atomic Safety and LicensingAppeal Board PanelU.S. Nuclear Regulatory CommissionWashington, D.C.20555Richard S. Salzman, EsquireU.S. Nuclear Regulatory CommissionWashington, D.C. 20555Mr. Perry G. BrittainPresidentTexas Utilities Generating Co.2001 Bryan TowerDallas, Texas75201Mr. R.L. Hancock, DirectorCity of Austin ElectricUtility DepartmentP.O. Box 1088Austin, Texas 78767Mr. G.W. Oprea, Jr.e-Jerome E. Sharfman, EsquireU.S. Nuclear Regulatory CommissionWashington, D.C. 20555Chase R. Stephens, SecretaryDocketing and Service SectionU.S. Nuclear Regulatory CommissionWashington, D.C. 20555Jerome SaltzmanChief, Antitrust and IndemnityGroupU.S. Nuclear Regulatory CommissionWashington, D.C.20555Mr. Roff HardyChairman and Chief Executive OfficerCentral Power 3 Light CompanyP.O. Box 2121Corpus Christi, Texas 78403Spr;uceGeneral ManagerCity Public Service BoardP.O. Box 1771San Antonio, Texas78203Mr. G.K.Executive Vice PresidentHouston Lighting & Power Co.P.O. Box 1700Houston, Texas77001Jon C. Wood, EsquireW. Roger Wilson, EsquireMatthews, Nowlin, MacFarlane& Barrett1500 Alamo National BuildingSan Antonio, Texas78205Joseph Gallo, EsquireRichard D. Cudahy, EsquireRobert H. Loeffler, EsquireIsham, Lincoln and Beale1050 17th Street, N.W.Washington, D.C.20036Michael I. Miller, EsquireRichard E. Powell, EsquireDavid M. Stahl, EsquireThomas G. Ryan, EsquireIsham, Lincoln and BealeOne First National PlazaChicago, Illinois 606032259 069

,.,- 2Poy P. Lessey, EsquireMichael Blume, EsquireU.S. Nuclear Regulatory CommissionWashington, D.C.20555Morgan Hunter, EsquireMcGinnis, Lochridge & Kilgore900 Congress AvenueAustin, Texas78701Jerry L. Harris, EsquireCity AttorneyRichard C. Balough, EsquireAssistant City AttorneyCity of AustinP.O. Box 1088Austin, Texas78767Jay M. Galt, EsquireMr. Dan H. DavidsonCity ManagerCity of AustinP.O. Box 1088Austin, Texas787671225 Southwest TowerAustin, Texas 78701-Joseph Irion Worsham, EsquireMerlyn D. Sampels, EsquireSpencer C. Relyea, EsquireWorsham, Forsythe & Sampels2001 Bryan Tower, Suite 2500Dallas, TexasKnoland J. PlucknettExecutive Director, Committeeon Power for the Southwest5541 East Skelly DriveTulsa, Oklahoma 74135Mr. W.S. RobsonDon R. Butler, Esquire*Looney, Nichols, Johnson& Hayes219 Couch DriveOklahoma City, Oklahoma 7310175201Joseph Knotts, EsquireNicholas S. Reynolds, EsquireDebevoise & Liberman1200 Seventeenth Street, N.W.Washington, D.C.20036Ronald Clark, EsquireEnergy SectionAntitrust DivisionDepartment of JusticeP.O. Box 14141Washington, D.C.20044Douglas F. John, EsquireAkin, Gump, Hauer & Feld1100 Madison Office Building1155 15th Street, N.W.Washington, D.C.20024South Texas Electric Cooperative, Inc.Route 6, Building 102Victoria Regional AirportVictoria, Texas 77901R. Gordon Gooch, EsquireJohn P. Mathis, EsquireBaker and Botts1701 Pennsylvania Avenue, N.W.Washington, D.C. 20006Robert Lowenstein, EsquireJ.A. Bouknight, Jr., EsquireWilliam J. Franklin, EsquireLowenstein, Newman, Reisand Axelrad1025 Connecticut Avenue, N.W.Washington, D.C.20036E.W. Barnett, EsquireCharles G. Thrash, Jr., EsquireJ. Gregory Copeland, EsquireTheodore F. Weiss, Jr., EsquireBaker and Botts3000 One Shell PlazaHouston, Texas770022259 070-

.,--.- 3-Kevin B. Pratt, EsquireAssistant Attorney GeneralP.O. Box 12548Capital StationAustin, Texas 78711Robert C. McDiarmid, EsquireSpiegel & McDiarmid2600 Virginia Avenue, N.W.Washington, D.C.20037&N.MFrederick H. RittsAttorney for Tex-La ElectricCooperative, Inc.2259 071--

2/ Bowie-Cass Electric Cooperative, Panola-Harrison Electric Co-operative, Deep East Texas Electric Cooperative, Wood County Elec-tric Cooperative, Upshur Rural Electric Cooperative, and Rusk County Electric Cooperative. Three of these cooperatives--Deep East, Wood County, and Rusk County--also purchase power from TP&L. 2259 066-_--4-Power Company for co-ownership of the Pirkey Plant, a