First Supplemental Response to TX Utils Generating Co 790209 First

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% PUBLIC DOCLIEMI' ROOM coc6 c 2 UNITED STATES OF AMERICA 6= g \M % y NUCLEAR REGULATORY COMMISSION 3 g \,, 9

BEFORE THE ATO21IC SAFETY AND LICENSING BOAR O\ gs 9 / tP

) In the Matter of ) ) * HOUSTON LIGHTING AND POWER ) Docket Nos. 150-498A CO, et al. (South Texas ) 50-499A , Project, Units 1 and 2) ) _ ) TEXAS UTILITIES GENERATING ) Docket Nos. 50-445A COMPANY (Comanche Peak Steam ) 50-446A Electric station, Units 1 ) and 2) ) )

FIRST SUPPLEMENTAL RESPONSE OF THE DEPARTMENT OF JUSTICE TO THE FIRST SET OF INTERROGATORIES AND REQUESTS FOR PRODUCTION OF DOCUMENTS FROM TEXAS UTILITIES GENERATING COMPANY TO ANTITRUST DIVISION, U.S. DEPT. OF JUSTICE

Pursuant to 10 C.F.R. S 2.740(e), the Department of

Justice (" Department"), based upon its present belief and the information presently in its possession, hereby supplies this response to supplement its initial response of April 3,

1979, to Interrogatory 2 of the *First Set of Interroga- tories and Requests for Production of Documents from Texas Utilities Generating Company to Antitrust Division, U.S. Depart- ment of Justice," dated February 9, 1979. If The Department expressly reserves its right, in accordance with 10 C.F.R.

l_/ At the June 21, 1978 prehearing conference in the above- captioned matter, the Atomic Safety and Licensing Board (" Board") directed that discovery requests be considered ,

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S 2.740(e), to add to alter, amend or modify the information provided herein, at the appropriate time.

Interrogatory 2 tates: 2. (a) Identify each expert witness whom the Division expects to or may call in these proceedings; (b) State (or produce) the educational and professional qualifications and credentials of each such expert witness; (c) State the subject matter on which the expert is expected to or may testify; (d) Provide a summary of the testimony which each such witness is expected to or may offer, including the substance of all facts and all opinions to which the expert is expected to or may testify;

(e) State the grounds for each opinion each such expert witness expects to or may present in his/her testimony;

(f) Identify all documents prepared by, for, or under the supervision of each su:.h expert witness, or reviewed or relied upon in any way by such expert in the performance of his/her duties, formulation of his/her conclusions or opinions, or preparation of his/her testimony, including particularly work papers, status reports, prelimin- ary outlines and memoranda, anc communications between such expert and the Division, any party to the proceedings, or any person with knowledge in any way relied upon by such expert, and provide copies of any such document not already in the rassession of TUGCO;

(g) Identify any person affiliated with a party to these proceedings, and each other person from whom information was obtained which is in any way relied upon or taken into account by such expert, with whom such expert has communicated; (h) Provide a copy of any contracts, letter agreements, or other understandings between the prospective witness or his employer and the ,

Division which relate in any way to these proceed- s, ings; j -)\

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(i) Identify all documents not produced in response to the foregoing which have been sent or given to the prospective witness or his or her employer or to which his/her/their attention has been directed which relate in any way to these proceedings, and provide copies of any such document not already in the possession of TUGCO.

The Department, based upon its present belief and the information presently in its possession supplies the following ' supplemental information regarding William E. Scott:

2 (a) No addition to previous response.

(b) No addition to previous response.

(d) No addition to previous response.

(e) The basis for the conclusions or opinions about which William E. Scott is expected to testify is founded in three areas. First, William E. Scott's acadtmic qualifications and credentials as an expert hm - already been provided to Texas Utilities Generating Company ("TUGCO")in the Department's April 3, 1979 response to interrogatory 2(b) of "First Set of Interrogatories and Requests for Production of Documents from Texas Utilities Generat- ing Company to Antitrust Division, U S. Dept. of Justice. The second basis for Mr. Scott's expected testimony is found in his professional expertise. Mr. Scott has enjoyed a distinguished and full career as an electrical engineer. His academic background has been amplified by extensive practical experience. Mr. Scott has been actively and continually employed as an electrical engineer since 1960. Specifically, Mr. Scott's tenure at the Federal Pcver mmission's regioral office in Fort Worth, Texas fr.2 June, 1970 to December, 1978 and his work relating to the reports on interconnection and coordination of municipal systems, a report on multi-area power pooling, two reports on interregional interconnection and coordination of Texas electric systems, and the two part report on the phasing out of natural gas and oil in the Southwest Power Pool and the Electric Reliability Council of Texas are at the heart of the substance of the facts and opinions about which Mr. Scott is expected to testify. The third basis for Mr. Scott's O ' ',L ' L -3- ,

expected testimony is the facts developed in this case on which Mr. Scott will rely. In addition, Mr. Scott has initiated a careful analysis of the tacts of this case which is continuing as discovery progresses. He has also reviewed some of the pleadings in West Texas Utilities Co., et al. v. Texas Electric Service Co., et al., No. CA 3-76-0633-F (N.D. Texas Div.) as well as this case. Mr. Scott's examination and analysis of the totality of discovery available in this case, however has only begun. deposition program progresses an,d ar. continual dis-As the covery requests, e.o. interrogatory answers and document production, are forthcoming, the basis for the conclusions and opinions about which Mr. Scott is expected to testify will expand. Thus, the '. basis for the conclusions and opinions about which Mr. Scott is expected to testify, will be founded on a combination of his educational background, practical work experience, (specifically his work relating to electric utilities in Texas) and the facts being revealed in the discovery during this litigation. To the extent that interrogatory 2(e) seeks additional information, the Department objects on the grounds that such a request is beyond the scope and purpose of Role 26(b)(4). (f) On July 25, 1979, TUGCO issued a subpoena duces tecum to William E. Scott requesting documents in his possession. These documents will be provided to TUGCO at Mr. Scott's deposition in Washington, D.C. scheduled for July 17, 1979. In addition, the Department has advised counsel for TUGCO that on July 11, 1979, or any time thereaf ter, he could pick up copies of all studies which William E. Scott participated in preparing, which are in the possession of the Department. The following is a list of those documents: 1. Report of the Commission by the FPC, " Prevention of Power Failures," Vol. 1, July, 1967

2. FPC-BP Staff Report: " Study of Pro- posed Interconnection between the City of Homer, La. and LPL Co.," March, 1971 3. Staff Report of "ERCOT-SWPP Electric Systems Interconnection and Relia- bility Evaluation FPC-BP," April, 1977 4. FPC-BP Staff Report: " Study of Pro- ,7 posed Interconnection between City (; J ' of Goodland, Kansas and Central Kansas ,t Power Co., Inc.," February, 1975 ' -4-

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5. FPC-BP Staff Report: " Study of Proposed Interconnection between City of Franklin, La. and CLECO," February, 1972 6. FPC-BP Staff Report: " Study of Proposed Interconnection between City of Belleville, Kansas and Kansas Division of Central Telephone & Utilities Corp ," February, 1972 7. FPC-BP Staff Report: " Study of Proposed Interconnection between City of Belcit, Kansas and Kansas Division of Central Telephone and Utilities Corp.," January, 1971 8. FPC-BP Staff Report: " Study of Proposei Interconnection between City of Coleman, April,Texas and1974 Brazos Electric Power Corp ," 9. "The Story of How the FPC Fort Worth Regionul Office is Promoting and Encourag- ing the Voluntary Interconnection and Coordination of Electric System," May, 1976 10. FPC Supplement to Staff Report on July 13-14, 1977: " Electric System Disturbance on the Consolidated Edison Co. of N.Y., August 4, 1977 Inc., System,"

11. FPC-BP Staff Report: " Study of Proposed Interconnection between City of Ellis, Kansas and Central Kansas Power Co.," December, 1971 12. FPC-BP Staff Report: " Study of Proposed Interconnection between City of Hill City, Kansas and Central Kansas Power Co.," March, 1972

13. FPC-BP Staff Report: " Study of Proposed Interconnection between City of Clarksdale, Miss. and Mississippi Power & Ligh t Co. , " July, 1971

14. FPC-BP Staff Report : "ERCOT Interconnection and Reliability Evaluation," March, 1978

15. U.S. DOE, FERC Final Staf f Report: "The Con June,Edison 1978 Power Failure of July 13 and 14, 1977,"

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t., 16. "The Phasing Out of Natural Gas and Oil for Electric Power Generation, SWPP and ERCOT, Part I, Present E actric Utility Program 1975-1984," September, 1975

17 "The Phasing Out of Natural Gas and Oil for Electric Power Generation, SWPP and ERCOT, Part II, Technical and Economic Evaluation of Various Possible Electric Utility Natural Gas Reduction Programs 1975-1990," March, 1976 18. FPC-bP Staff Report: " Study of Proposed Interconnection between City of Stockton, Kansas and Kansas Division of Central Telephone & Utilities Corp.," December, 1974

19. FPC-BP Staff Report: " Study of Full Inter- connection and Coordination of Electric Systems located in FPC Power Supply Areas 29 and 34," November, 1975 20. FPC-BP Staff Report: " Study of Proposed Interconnection between City of Washington, Kansas and Kansas Division of Central Tele- phone & Utilities Corp.," July, 1971

21. FPC-BP Staff Report: " Study of Proposed Interconnection between ERCOT and SWPP," October, 1972

To the extent that interrogatory 2(f) seeks additional information, the Department objects on the grounds that such a request is beyond the scope and purpose of Rule 26(b)(4). (g) No addition to previous response. (h) On June 25, 1979, TUGCO issued a subpoena duces tecum

to William E. Scott requesting documents in his possession. These documents will be provided to TUGCO at his deposition in Washing- ton, D.C. scheduled for July 17, 1979. To the extent interrogatory

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. - .. . . . - - . .- 2(h) seeks additional information the Department . objects on the grounds that such a request is beyond the scope and purpose of Rule 26(b)(4). (i) On June 25, 1979, TUGCO issued a subpoena duces tecum to William E. Scott requesting documents in his

possession. These documents will be provided to TUGCO at his

deposition in Washington, D.C. scheduled for July 17, 1979. To the extent interrogatory 2(i) seeks additional information the Department objects on the grounds that such a request is beyond the scope and purpose of Rule 26(b)(4).

Interrogatory 7 states:

7. With respect to each expert witness listed in your response to Item 2.a,

(a) list each judicial or administrative proceeding since January 1, 1970 in which each individual has been proffered as an expert witness. (b) as to each such proceeding, indicate whether he or she was accepted as an expert witness.

(c) list the publications of each such witness. (d) provide a copy of the testimony of each such witness as an expert witness in any judicial or administrative proceeding since January 1, 1970.

The Department, based upon its present belief and inforruation presently in its possession, supplies the following supplemental information regarding William E. Scott: 7. (a) No addition to previous response.

(b) No addition to previous response. ,

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1. Report of the Commission by the FPC, " Prevention of Power Failures," Vol. 1, July, 1967

2. FPC-BP Staff Report: " Study of Pro- , posed Interconnection between the - City of Homer, La. and LPL Co.," March, 1971

3. Staff Report of "ERCOT-SWPP Electric Systems Interconnection and Relia- bility Evaluation FPC-BP," April, 1977

4. FPC-BP Staff Report: " Study of Pro- posed Interconnection between City of Goodland, Kansas and Central Kansas Power Co., Inc.," February, 1975

9. "The Story of How the FPC Fort Worth Regional Office is Promoting and Encourag- ing the Voluntary Interconnection and Coordination of Electric System," May, 1976

-0 - .m o!s 10. FPC Supplement to Staff Report on July 13-14, 1977: " Electric System Disturbance on the Consolidated Ecison Co. of N.Y., Inc., System," August 4, 1977 11. FPC-BP Staff Report: " Study of Proposed Interconnection between City of Ellis, Kansas and Central Kansas Power Co.," December, 1971 12. FPC-BP Staff Report: " Study of Proposed Interconnection between City of Hill City, Kansas and Central Kansas Power Co.," March, 1972

13. FPC-BP Staff Report: " Study of Proposed Interconnection between City of Clarksdale, Miss. and Mississippi Power & Light Co. ," July, 1971 14. FPC-BP Staff Report : "ERCOT Interconnection and Reliability Evaluation," March, 1978

15. U.S. DOE, FERC Final Staff Report: "The Con Edison Power Failure of July 13 and 14, 1977," June, 1978

16. "The Phasing Out of Natural Gas and Oil for Electric Power Generation, SWPP and ERCOT, Part I, Present Electric Utility Program 1975-1984," September, 1975

17. "The Phasing Out of Natural Gas and Oil for Electric Power Generation, SWPP and ERCOT, Part II, Technical and Economic Evaluation of Various Possible Electric Utility Natural Gas Reduction Programs 1975-1990," March, 1976

19. FPC-BP Staff Report: " Study of Proposed Interconnecti>n between City of Stockton, Kansas ano .~,ansas Division of Central Telephone & Utilities Corp.," December, 1974

19. FPC-BP Staff Report: " Study of Full Inter- connection and Coordination of Electric Systems located in FPC Power Supply Areas 29 and 34," November, 1975

20. FPC-BP Staff Report: " Study of Proposed Interconnection between City of Washington, Kansas and Kansas Division of Central Tele- phone & Utilities Corp.," July 1971

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.__ . 21. FPC-BP Staff Report: " Study of Proposed Interconnection between ERCOT and SWPP," October, 1972

22. FPC, "A Review of Consolidated Edison Com- pany 1969 Power Supply Problems and Ten-year Expansion Plans," December, 1969 23. FPC, "The 1970 National Power Survey," December, 1971 24. William E. Scott and Robert H. Agasmaite, " Continuous Two-mile Submarine Cable Drastically Cuts Laying Time," Electrical World Magazine, August 12, 1963 25. William E. Scott, "Sectionalizers Cut Custo- mer Outages 20 Percent," Electrical World Magazine, June 27, 1966

(d) No addition to previous response.

The foregoing answers to interrogatories are, to the best of the Department's present belief and knowledge based on the information presently in our possession, true and correct. Respectfully submitted,

,bM^,h- Susan B. Cypnert

. Ronald H. Clark Attorneys Antitrust Division, Energy Section U.S. Department of Justice District of Columbia # * * Subscribed and sworn to before me, a notary public, this 13th day of July 1979. I MA" NYJJw, July 13, 1979 MM MM , uxe - ~ n u u.m: , 3- o t

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UNITED STATES OF AMERICA NUCLEAR REGULATORY COMMISSION

BEFORE THE ATOMIC SAFETY AND LICENSING BOARD

) In the Matter of ) ) HOUSTON LIGHTING AND POWER ) Docket Nos. 50-498A CO., et al. (South Texas ) 50-499A Project, Units 1 and 2) ) ) TEXAS UTILITIES GENERATING ) Docket Nos. 50-445A COMPANY (Comanche Peak Steam ) 50-446A Electric Station, Units 1 ) and 2) ) )

CERTIFICATE OF SERVICE I hereby certify that service of the foregoing FIRST SUPPLEMENTAL RESPONSE OF THE DEPARTMENT OF JUSTICE TO THE FIRST SET OF INTERROGATORIES AND REQUESTS FOR PRODUCTION OF DOCUMENTS FROM TEXAS UTILITIES GENERATING COMPANY TO ANTITRUST DIVISION, U.S. DEPT. OF JUSTICE has been made on the following parties listed hereto this 13th day of July, 1979, by depositing copies thereof in the United States mail, first class, postage prepaid.and, where an asterisk appears, service has been made by hand.

Marshall E. Miller, Esquire Samuel J. Chilk, Secretary Chairman Office of the Secretary of the Atomic Safety & Licensing Board Commission Panel U.S. Nuclear Regulatory U.S. Nuclear Regulatory Commission Commission Wash ing tor: ,. D.C. 20535 Washington, D.C. 20555 Atomic Safety and Licensing Michael Glaser, Esquire Appeal Board Panel 1150 17th Street, N.W. U.S. Nuclear Regulatory Washington, D.C. 20036 Commission Washington, D.C. 20555 Sheldon J. Wolfe, Esquire Atomic Safety & Licensing Board Richard S. Salzman, Esquire Panel U.S. Nuclear Regulatory U.S. Nuclear Regulatory Commission Commission Washington, D.C. 20555 Washington, D.C. 20555

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Jerome Sharfman, Esquire G.W. Oprea, Ji. U.S. Nuclear Regulatory Executive Vice President Commiss ion Houston Lighting & Power Washington, D.C. 20555 Company P.O. Box 1700 Chase R. Stephens, decretary Houston, Texas 77001 Docketing and Service Branch U.S. Nuclear Regulatory Jon C. Wood, Esquire Commission W. Roger Wilson, Esquire Washington, D.C. 20555 Matthews, Nowlin, Macfarlane & Barrett Jerome Saltzman 1500 Alamo National Building Chief, Antitrust and San Antonio, Texas 78205 Indemnity Group U.S. Nuclear Regulatory Joseph Gallo, Esquire Commission Richard D. Cudahy, Esquire Washington, D.C. 20555 Robert H. Loeffler, Esquire Isham, Lincoln & Beale Roff Hardy Suite 701 Chairman and Chief Executive 1050 17th Street, N.W. Officer Washington, D.C. 20036 Central Power and Light Company Michael I. Miller, Esquire P.O. Box 2121 Richard E. Powell, Esquire Corpus Christi, Texas 78403 David M. Stahl, Esquire Thomas G. Ryan, Esquire Perry G. Brittain Isham, Lincoln & Beale President One First National Plaza Texas Utilities Generating Chicago, Illinois 60603 Company 2001 Bryan Tower Roy P. Lessy, Esquire Dallas, Texas 75201 Michael Blume, Esquire U.S. Nuclear Regulatory R.L. Hancock, Director Commission City of Austin Electric Washington, D.C. 20555 Utility Department P.O. Box 1088 Jerry L. Harris, Esquire Austin, Texas 78767 City Attorney, Richard C. Balough, Esquire Assistant City Attorney City of Austin P.O. Box 1088 Austin, Texas 78767 Rocert C. McDiarmid, Esquire Robert A. Jablon, Esquire Spiegel and McDiarmid 2600 Virginia Avenue, N.W. Hashington, D.C. 20036

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Dan H. Davidson Jonn W. Davidson, Esquire City Manager Sawtslle, Goode, Davidson City of Austin & TA7ilo P.O. Box 1088 1100 Sas Antonio Savings Austin, Texas 78767 Build 1'g San Anton.o, Texas 78205 Don R. Butler, Esquire 1225 Southwest Tower W.S. Robson Austin, Texas 78701 General Manager South Texas Electric Joseph Irion Worsham, Esquire Cooperative, Inc. Merlyn D. S ampels , Esquire Route 6, Building 102 Spencer C. Relyea, Esquire Victoria Regional Airport Worsham, Forsythe & Sampels Victoria, Texas 2001 Bryan Tower, Suite 2500 77901 Dallas, Texas 75201 R. Gordon Gooch, Esquire John P. Mathis, Esquire Joseph Knotts, Esquire * Baker & Botts Nicholas S. Reynolds, Esquire 1701 Pennsylvania Avenue, N.W. Debevoise & Liberman Washington, D.C. 1200 17th S treet, N.W. 20006 Washington, D.C. 20036 Robert Lowenstein, Esquire * J.A. Bouknight, Esquire Douglas F. John, Esquire William J. Franklin, Esquire Akin, Gump, Hauer & Feld Lowenstein, Newman, Reis, 1100 Madison Office Building Axelrad & Toll 1155 15th Street, N.W. Washington, D.C. 10 25 Connecticu t Avenue, N.W. 20024 Washington, D.C. 20036 Morgan Hunter, Esquire McGinnis, Lochridge & Kilgore E.W. Barnett, Esquire 5th Floor, Texas State Bank Charles G. Thrash, Jr., Esquire Building J. Gregory Copeland, Esquire 900 Congress Avenue Theodore F. Weiss, Jr., Esquire Austin, Texas Baker & Botts 78701 3000 One Shell Plaza Houston, Texas Jay M. Galt, Esquire 77002 Looney, Nichols, Johnson Kevin B. Fratt, Esquire & Hayes Assistant Attorney General 219 Couch Drive P.O. Box 12548 Oklahoma City, Oklahoma 73101 Capital Station Austin, Texas Knoland J. Plucknett 73711 Executive Director Frederick H. Ritts, Er n .. Committee on Power for the ' Southwest, Inc. Law Offices of Northcu~ Watergate 600 Building 5541 East Skelly Drive Washington, D.C. 20037 Tulsa, Oklahoma 74135 swJ susan B. Cyphert, Attorney Energy Section Antitrust Division Department of Justice ,n 'f. I; L

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