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EO 9 '|UNITED STATES OF AMERICA -,

BEFORE THE D C '"

p I O g Tg ,NUCLEAR REGULATORY CCMMISSION l

b lthec y ,E 4gBEFORE THE. ATOMIC SAFETY AND LICENSING BOA 3

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In the Matter of )~

)Hous. ton Lighting & Power Company, et al . ) Docke t Nos .

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|(South Texas Project, Units 1 & 2) ) 50-498A

) 50-499A)

Texas Utilities Generating Company, et al . ) Docket Nos.(Comanche Peak-Steam Electric Stations, ) 50-445A :Units 1 & 2) ) 50-446A )

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SETTLEMENT STATUS REPORT OF THEPUBLIC UTILITIES BOARD OF THE |

CITY OF BROWNSVILLE, TEXAS :

The Public Utilities Board of the City of

Brownsville , Texas ("Brownsville") files this status report

as required by Board Order of August 13, 1980.

Brownsville is awaiting an opportunity to review

the final draf t of an agreement on license conditions and

a new settlement related agreement proposed in the related

FERC proceeding , l_/ reached within the last few days .

Commission Staff counsel is requesting additional time for

review of these agreements by Brownsville and other parties

that have not seen them. Brownsville has also requested an

opportunity to review the settlement related documents

genero ed by the Texas Utilities companies ("TU"), Hous ton

Lighting & Power Company ("HL&P") and Central and South West

1/. Ce n tral Powe r & Lig h t Co . e t al . , FERC Docke t No .EL 79-8. The Administrative Law Judge in that proceeding hasgranted a brief. extension providing the parties an oppor-Pnity for comment.

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Corporation and its af filiates ("C&SW") , but has not ye t

received - any of these documents.1/

Without such review, Brownsville cannot make a

final statement as to whether the new agreements will be

acceptable, or as to the issues upon which Brownsville may

d isag ree .

In the past , Brownsville has taken positions which

include the following :

1. That there must be adequate evidence of record

establishing tha t the proposed DC interconnections

are justified from an economic and engineering

point of view as compared to AC and tha t the pro-

posed DC interconnections do not appear to allow for_

integrated operation with the Southwest Power Pool;

2. That there must be adequate provisions|

assuring that HL&P and TU cannot, by disconnecting, j

unreasonably prevent other utilities from engagingI

in interstate commerce;

3. That it appears not in the public interest for! !

HLP and TU to immunize themselves for the |

| future from regulation under the Federal Power Act,

; ' particularly in view of the lack of contractual!

basis for the Texas Interconnected Systems (" TIS")|

| 1/ These documents, as to TU and HLP, were the subjectof the Board Order issued August 13, 1980. TU has agreed to

| allow Brownsville 2 review the documents produced , and - C&Si .!! will make copies availabin' as soon as possible. HL&P refuses

to make the documents available at this time.l11

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and South Texas Interconnected Systems ("STISd ) and

the failure of C&SW, HLP and TU to agree to ef fec-

tuate the studies made by Glenn Stagg fo r HLP ,

which demonstrate the savings for all of the

Electric Reliability Council of Texas ("ERCOT")

available through joint planning and integ rated

pool operations;

4. That it appears not in the public interest for

C&SW' to establish a holding company pool (a) from

which smaller interconnected utilities are

excluded , and (b) which will bmpede development of

| joint planning and integrated operation of TIS and|.

I STIS;!

5. That Brownsville cannot settle with Central

|Power & Light Company ("CP&L") and C& SW until

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there is full disclosure of current actions, objec-I

tives and intentions as to any attempt to take over 1

the Brownsville system, and as a sine qua non that

CF&L respond to Brownsville 's current

Interrogatories on the subject matter; 1/6. That there must be finalized all transmissionwheeling rates and contracts (at least those,

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! af fecting Brownsville) which are- filed at FERC, {j-! |

l1/ These Interrogatories, served August 25, 1980, are |

the subject of a ' Motion to Compel filed and served on September11,-1986. Brownsville also filed and served on September 12,

; 1980, a Notice of. Taking of Depositions to two CP&L of ficials_

! on: the subject of CP&L's current actions directed at takeoverL of the 'Brownsville electric system.LL

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subject to adequate restrictions concerning sub-

sequent unilateral changes;

7. That there must be agreement as to the prin- ,

cipal provisions governing agreements for par-

ticipation in future nuclear and 'other large

generating units;

8. That there must be adequate assurance that

CP&L and C&SW will rectify and not resume -anticom-

petitive actions towards Brownsville.

Brownsville has been active in pursuing settlement

negotiations during the past two months . On July 31, 1980,

Grownsville ' met with representatives of C&SW and CP&L,<

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discussing all outstanding issues. Brownsville has followed

up on these discussions through correspondence and telephone l

contacts. Brownsville met with several parties on |I

August 8, 1980. Brownsville met again with other electric

systems . parties to this . case on ? August 26,-1980 and discussedi

i- transmission issues as related to settlement. Brownsville

reque sted information - from ' the parties, concerning pastI transmission practices and the application of various propo-

sals discussed.; HL&P has responded to this . reque st. !

Brownsville also received and reviewed ' copies of the versions'-

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of draf t- license conditions circulated by the Department of |

Justice and the'~ Commission's staf f. .It submitted its pro-

: posed . license conditions to all' parties on August 29, 1980.

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WHEREFORE, Brownsville requests a . short additional

time in which to receive and review the new agreements and

additional information described above, and to determine and1

submit to ' the Board and parties what issues, if any, remain,

unresolved.

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Respectfully F Jmitted,#

i h^-C Q| Marc R. Poirier4

| Attorney for the PublicUtilities Board of the City of'

Brownsville, Texas,

j Law' Offices Of :<,

i- SPIEGEL & MCDIARMID '

2 600 ' Virginia Avenue , N.W.Suite 312

,

Washing ton, D.C. 20037,

(202) 333-4500

September 15, _1980

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UNITED STATES OF AMERICABEFORE THE

NUCLEAR REGULATORY COMMISSION

BEFORE THE ATOMIC SAFETY LICENSING BOARD

In the Matter of ))

HOUSTON LIGHTING & POWER COMPANY, ) Docke t No s . 5 0-4 98 Ae t al . ) and 50-499A

)(South Texas Project, Unit Nos . )1 and 2) )

)))

In the Matter of ))

TEXAS UTILITIES GENERATING COMPANY, ) Docke t Nos . 5 0-4 4 5Aet al. ) and 50-446A

)(Comanche Peak Steam Electric )S ta tion , Unit No s . 1 and 2 ) )

)

CERTIFICATE OF SERVICE

: I hereby certify that I have caused copies of theforegoing SETTLEMENT STATUS REPORT OF THE PUBLIC UTILITIESBOARD OF THE CITY OF BROWNSVILLE , TEXAS -to be served on thefollowing by deposit in the United States mail, first class,pos tage paid , or nas . indicated by asterisk (*) by hand, this15th day of September,1980.

* Marshall E. Miller, Chairman- *Sheldon J. Wolfe, Esquire} Atomic Safety & Licensing Board Atomic Safety & Licensing Board'

Panel PanelNuclear Regulatory -Commission Nuclear Regulatory CommissionWashing ton , D. C. 20555 Washing ton , D. C. 20555

* Michael L. Glaser, Esquire Joseph Rutberg , Esquirell50.17th Street, N. W. . Antitrust CounselWashing ton, D. C. 20036 Nuclear Reg ulatory Commission

Wa shing ton , D. C. 20555Fredric D. Chanania, Es q .

' Michael B.'Blume, Es q . R. Gordon Gooch, EsquireAnn Hodgdon, Esq. John P. Mathis, EsquireNuclear Regulatory Commission Baker & BottsWashington, D. C. 20555 1701 Pennsylvania Avenue , N. W.

Wa shing ton , D. C. 20006,

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Jerome Saltzman, ChiefAntitrust & Indemnity Group Robert Lowenstein , EsquireNuclear Regulatory Commission J. A. Boukn ig h t, Jr., EsquireWa shing ton , D. C. 20555 William J. Franklin , Esquire

Lowe ns te in , Ne wman , Re is ,Chase R. Stephens, Chief Axelrad & TollDocke ting & Service Section 1025 Connecticut Ave nue , N. W.Office of the Secretary Wa shing ton , D. C. 20036Nuclear Regulatory CommissionWa shing to n , D. C. 20555 Frederick H. Ritts, Esquire

Law Offices of Northcutt ElyDav id M. Stahl, Esquire Watergate 600 BuildingSarah F. Hol zswe ig , Esquire Washing ton , D. C. 20037Isham, Lincoln & Beale1120 Connecticut Avenue , N. W. Wheatley & WollesonSuite 325 1112 Watergate Of fice BuildingWa shing ton , D. C. 20036 2600 Virg inia Avenue , N. W.

Wa shing ton , D. C. 20037Robert Fab rikan t , EsquireAntitrust Division William Sayles, Chairman andDepartment of Justice Chief Executive OfficerP. O. Box 14141 Central Power & Light CompanyWashing ton , D.C. 20444 P. O. Box 2121

Corpus Christi, Texas 78403Joseph Knotts, EsquireNicholas S. Reynold s , Esquire G. K. Spruce, General ManagerDebevoise & Liberman City Public Service Board1200 17 th Street, N. W. P. O. Box 1771Wa shing ton , D. C. 20036 San Antonio , Texas 78201

Douglas F. John, Esquire Jon C. Wood, EsquireMc De rmo t t , Will & Emery W. Roger Wilson , Esquire1101 Connecticut Av e nue , N.W. Matthews, Nowlin , MacfarlaneSuite 1201 & BarrettWa shing ton , D.C. 20036 1500 Alamo National Building

San Antonio , Texas 78205Robert O'Neil, Esquire IMiller, Balis & O'Neil Perry G. Brittain, President776 Executive Building Texas Utilities Generating Co. !

1030 Fif teenth Street, N. W. 2001 Bryan Tower'

Wa shing to n , D.C. 20005 Dallas, Texas 75201

Ms. Evelyn H. Sm ith J. Irion Wdrsham, Esquire |Route 6, Box 2 98 Merlyn D. Sampels , Esquire ;|Gaffney, South Carolina 29340 Spencer C. Rel ye a , Esquire

Worsham, Forsythe & SampelsDick T. Brown, Esquire 2001 Bryan Tower800 Milam Building Suite 2500San Antonio, Texas 78205 Dallas, Texas 75201

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R. L. Hancock, Direc tor G. W.-Oprea, Jr.City of Austin Electric Utility Executive Vice President

Department- Houston Lighting & Po we r Co .P. O. Box 1088 P. O. Box 1700Austin, Texas 78767 Houston , Texas 77001

Jerry L. Harris , Esquire W. S. Robson, General ManagerRichard C. Balough, Esquire South Texas Electric Coop. , Inc.City of Austin P. O. Box 151P. O. Box 1088 Nursery, Texas 77976Austin , Texas 78767

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Don H. Dav id son . Michael I. Miller, EsquireCity Manager Isham, Lincoln & BealeCity of Austin One First National Plaza

-P. O. - Box 1088 ' Chicago, Illinois 60603Austin, Texas 78767

Donald Clements , EsquireDon R. Bu tle r , Es q. Gulf States Utilities Co.Sneed, Vine, Wilkerson, Selman P. O. Box 2951

; & Perry Beaumont, Texas 77074'

P. O. Box 1409 i

Austin, Texas 78767 Knoland J. Plucknett >

Executive DirectorMorgan Hunter, Esquire Committee on Power for the;

|McGinnis, Lochridge & Kilgore Southwest, Inc.900 . Congress Avenue 5541 Skelly DriveAustin,. Texas 78701' Tulsa, Oklahoma 74135

Kevin1B. Pra tt , Esquire Jay M. Gal t , Esquire. Linda Aaker, Esquire Looney, Nichols , Johnson & Haye s tP. O.- Box 1254 8 219 Couch DriveCapital Station Oklahoma. City, Oklahoma -73101Austin , Texas 78767

Robert E. Cohn, Esq. .

E. W. Barne t t , Esquire Richard.J. Le idl , Esq.'

Charles G. Thrash, Jr., Esquire Butler, Binion, Rice, CookJ. . Gregory Copeland , Esquire & Knapp ;

Theodore F. Weiss, Jr., Esquire 174 7 Pennsylvania Ave . , N.W.Baker & Botts 9th Floor3000 One Shell Plaza Washing ton , D.C. 20006Houston, Texas 77002

| . Paul W. Ea to n , L Jr . , Esq. Leland F. Lea therman , Esq.L 'Hinkle, Cox, Eaton, Cof field McMath, Leatherman and Woods , P.Sj and Hensley= 711 West Third Street '

P. O. Box 10 e Rock, Arkansas 72201- Roswell , New1 Mex ico - '88201

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Somervell Coun ty Publ_C LibraryP. O. Box 417Glen Rose , Texas 76403

Maynard Human , General ManagerWestern Farmers Electric Coop.P. O. Box 4 29Anadarko, Oklahoma 73005

James E. MonahanExecutive Vice Presidentand General Manager

Brazos Electric Power Coop. , Inc.P. O. Box 6 296Waco , Texas 76706

Robert M. Rad e r , EsquireConner, Moore & Corber1747 Pennsylvania Avenue , N. W.Wa shing ton , D. C. 20006

W. N. Wbolsey, EsquireDyer and Redford1030 Petroleum TowerCorpus Christi, Texas 78474

Mr. G. Holman KingWest Texas Utilities Co.P. O. Box 8 41Abilene, Texas 79604

Maurice V. Brooks, Es q .j Brooks , Gordon , Long & Shahan! P. O. Box 118

Abilene, Tex as 79604

su C, WQMarc R. Po ir ier

Attorney for the Public UtilitiesBoard of the City of Brownsville ,Texas

September 15, 1980