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Public U:111:1es C :...issics of Chio . 9. F ~ F I V T f.J :'i130 Ias: 3::ad 5=es: I

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j.Colu= bus, Chi 43215 -4 1. n. iv. ..

A::e :i::: C. I. Glasco, Chief I CtM #J= ec ae Sec n .i MC.'R?.m- 00..2%L 1* w4.. a 3

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C:=pliance Divis10: TromJ.x tie A of hd @ fJ t * i- Nre \c.h,h "3r.edr3 P4.0 ECMu E

i Dear Mr. Glasco: C r E.\it.cii< S cpbud Ch dd"dei in Sa c.M6 Y. 3 i . 9i @) , Wr# ded C C+-

A: :he infor=al esti:g held on Sep:e=ber 21, 19 73 a: the State Cf fice Tevervi:h respec: :: :he draf: cf p cpesed rules relacius : "3cundary Map ?::ceduref or '' =-1c Suppliers as deid-d #~

Sec:1:= l-933.31(A) , Revised Code", you. i=dicated :har interes:ed persons were velecc:a : sub=1: written ce= en s :: youregarfing :he proposed,:ules 'Je are subei::ing de f =11 vi:3 cc=:en:s :: behaliof Chic Rural Ilecric Cecpera:ives, Inc. whose se=bers consis ef the :ves:7eigh: rural elect:10. cc:panies opera ing 1: :he Sca:e of Chio, all of which',c::sti:::e elec=ic suppliers as defined i: See :10: !.933. 31(A) , Revised C de.

.

; I: :he 12:eres: Of brevi:7, ve vill.:o: repea: all :he ::==ects which .recada c: ally at :he af oremencieted meeting, but we reaffi = cur reques: : hatyou :ake such cc. ents in:: e:esider.acies. ..Acos; cur c wes:s were he f=11:ving :

1. In de sec =d parag ph, firs: pag e , begi==ing <- -"* :hird 11:e, :hephrase "o for which cc =ac:s had been signed" appears. 'Je believej :his shculd be clarified :o take clear :ha: 1: is ::17 "exis:1:g'

dis =ibucie: 11:es" as defined i: See:ic: 1933.3 l(C) and (D) vi-d.hhe ce=sidered is prepari:g boundar7 22ps. The C ==1ssice's

ar e ::

: :les =ust be in cc f er:1:7 wi:h :he sta:n:::7 de#'a d -d ~~.s . I: is aiac: :ha: where an elec=ic supplier was t: da: ces::ac: :: se:re acus:=er :: January 1, 1977, :ha: cust:=e: is := be included i: thesuc. o. lier's cac. c. ed area. Perha:s :his ca::e : uld be clar''d u 'y

,

.

.feleting :he abcve que:ed phrase and including a separa:e sen:acca. == cover si ua:icts vhare a ect ac: : sa:re a cus:::e e:is:ed<

cc anuarv 1, 19 u ..

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GEcTtG E. GP.EZX. KING. CMAHcN & McCONNAucHEf

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? age 2s. . . _s _t ,._ ~v . _t s _t . _aes C.w _ss< n.:. C.u.._tc. . _ _

Cc::ber.3, 1973

2. A: de end Of the fif th paragraph .he firs: page, we sugges: da: :hefell:ving phrase be added 2: cha and of :he sen:ence: "and cc= sis:en:sid :he purgesas and previsicas of See:1:n 4933.31 d:: ugh 4933.90,Revised Code." We think :his =cdifica:i= vill maka clear tha: while1: is certai=1y de legislative is:en: da: aleenic suppliers a::e=p:c agree upc the =cs: practical location of boundary lines, taking

, physical ci:c=sca ces, se elec=ic supplia: can beis:: accou=c=pelled := accept. a beundarf 11:a which is closer :: 1:s existi:gdis =ibutic lines, as.defised, den :: hesa of a==:her elec =1:supplier (except i= de case of de area occuppied by cus =ers u de:

' ::: =ac: c Ja=.uary 1, 1977. )'

I 3. I: :he firs: paragraph a: de : p of the sacend page, we think thephrase "elec=ic ligh: c=pany-corpera:ics" appearing in the fourthline should be "elee nic supplier" s'--= -k's is de cc :ec: s:a:u:: 7:er . -

i 4 The sec d paragraph : de sec=d page reders :: zunicipal :::pera: ices"which purchasa elec=icity a: wholesale f: = an elec = i light cc:pany

; c scu-=unicipal :=-p cf t: cc perati =." It is a sea:u:::7:scuire en: da the sa:--_ce areas Of all .umicipal ec peratices whichprovida reta'' a ' -1: service are :: be indicated ce the boundary

'

=aps regardless of :he scur:e of elec=ici:7 used by such zuni:1 pal,

cc pera: ices. ~. e purpcse of de abcve cuoted language appears ::'

.a.e .,2_ %_ _ a_. % .__

5. A: de hearing,:he :spresenca:ives Of sc=e elec=i suppliers indica:sda ce es:: 22: any discussicas between elec=ic ssppliers vid respec::: de. preparatics of beundary =aps nigh: consci:uta a proble= becausaof :he possible application of Federal anti::ust laws c de :::di: ices::::ained i: 11: esses issued by :he l'uclea- Reg"' =: rf C:==issics.

,,

We u dars:and da: because of this ce==e= sc=e of de Chi: elec=1: suppliers'

are aser.1 g da: 1: veuld be u lawful f : de= :: ents: i=== any discussicus vi:hc her 12:erf aci=g ' eleenic suppliers is c da := inplace - 2-=-ded Ecuse 3i11 577.-

An't supplier scandi=g dis posi ice is in edf ec: saying i: is unwilling :=ca..f en: de legislative za da:e :: presas: =aps :: :he ?UCC d-"'-' ting icundar r

lines dece=i=ed in ace::danca vich :he r ecu'-=--:s ed de A=. H.3. 577. This is,

ecessarily so becausa 1: is i=pessible : sub=1: =aps showing Scundar7 lines~. ' ..*.cu c t __' .~.1.' ~.g .-' .h ad ;' c ' ~ ' ~ g s_ _' _= c ~. '- =- e, n, _' _d _=- . ..- d e ". .= ~. ' .~.=. . .*. =_ _' c c ~ '_ c ~-. . _

cf dei: respective dis =ibu:1 = ' d es and cus::=ers existing as cf Januar7 1,1977. Se ::e suppliar ca: deter =i=e :he Scunda:7 'ines of its service area

t : _a_. a_ , z.., ,.c t e _ a .3 su p __a , _. _ . -,s.,...-

..a..u..ct . a,r . . u._s .aa_ .

_. . .. . a . . . . . - . ... . . .. a

:: e=pla:es da: de ?UCC sc: be burdened v-ld de :ssk Of drav_:g :he lines

,

except is dose ins:2 ces where dere is a disagree =es: be: vee :he elecni:

i suppliers 1as :: de pr:per locatics of a bou .dar7 '' a. nere is car:ainly ::~

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G Ecac E. GREEX. KINC ICM AHON a MCCCNNAUGHE -

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possible way :c car:r cu: :he s:2: :o 7 s:he=a of placi:s :he pr'-a y burdefor :he de e=i=a:ics of boundar7 limes 1: .he fi se iss:anca upon the elec=1:suppliers affected unless :he elec=1c suppliers are che=selves vi"# g :=cocpera:e. Consequently, we chick it is a =a::e of grave importa:ce fc :he

'successful i=ple=entation of .t::. E.3. 577 is a pr:cp:, efficies: and econc=icalca==e: vi:h a =isi=us of burden ce che Cc ission and its saff, that alleleenic suppliers be vilid :o fully c=cpera:e in che prepara:1 2 :f :hed ':ial beunda 7 =aps.

Cur research indica:es tha: =cre the: f:::7 s:at es 'have'sc=a type oflegis12:1:n involving :he allocatic: cf service. areas a=ceg elec::ic suppliers.I: is also c:==cn k cvledge the: =any c:her u:ill:1es a e subj ec: :id ':a:10:s en : heir service area under a dde variety of s ca:e and federalsca =:es. 7e are usavare of a single instance where any effer: of c:ilities:o cecpera:e a=ces theselves :o impleen: and car 7 out the ;;cvisicas ofsuch legislacion has been f:u=d :o be a violatics of :he a=:1::ns: hus :any :Tuclear Regula:: 7 C. ' sics license cc:dizi:n.=.

.

|The reascu is appare::.

It is a se:: led pri c:p.:.e c: -eceral lav :ha: :o :=ndue: ci a privaceindividual which is car-ted ou: :o i=ple=e:: a s:a:e s a u:e regula:ing cospeti:10:

! can consti:uce a viola:1:n of :he an:i: us: laws even if such conduc: vould1'

he a viola:icn of the as:i=ust laws if i: vere c: being canied cu: f:::he purposes of i=ple=e::ing a s: ace s:a:::e. ?arker 7. 3revn, 317 U.S. 341.This principle was reces:17 affi=ed by the C.S . Supre=e Cou-- #- 'ac es r . Sta:e

| 3ar of Ari:::a, 97 S.C~. 2691. There a-= - e:cus decisiccs of :he : ur:sfolleving the Parker 7. 3r:vn pr_ ciple. See e.g., Cas Lizh: C :a=v cf Cele =husr. Gec2ia ?:ver C = a=v, 313 7. Supp. 360 (M.D. Ga.); Alls: ace : su a ceC ::a=v v. *anier, 361 7.2d 370 (C.A. ich Cir.)..

,

We have reviewed cacy licensing ccedi:icus con:ai=ed is pe:=i:s issued by:he :Tuclear Regulate:,7 Cc==ission and we *.. ave f:end se p;cvisicas whichpurports :s p :hibi: a u:ili:7 fres ::cpera:ing vi:h :he" "-d ' ' -des is

i=ple=en ' s: ace ce=1:::ial legish:ics. Moreever, since -he whole purpcse

of sue", ice = sing :.

-~d'-d ns is := apply :he principles Of : e -eceral an:i: us: husi :o the _ cuc_ ear generating s .._. s , ,: veu _3 :.

..ce :._,_:g'-=, ,..

s--.

inconsistan: :: .cenceive of a NRC license :: di:icn tha: vas '--= dad -- b eapplied in a sanner conflic:i=g v :h'a well established principle Of :he Federalat:i: us: hus .

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' GEORGE. GREEX. KING. .CMAHCN & MCCONNAUGHE

Page /. .

Public U:ili:1es C::=issics of ChicCc::ber 3, 1975

Accc:d1= gly, ve s:::= gly urge -le Cc==issi:n :s i clude in :he p :pesedules a p :visics subs:ancia''y as ic11 vs:

,

"7. lect:1c suppliers shall coopera:e with c=e ano:her i= p: vidi:g alli=for=ation necessary :o prepare beundary =aps in eccfs =1:7 .-d:h the>

require =ects of See:10:s 4933.31 to 4933.90, Revised Code, and tofac111: ace preparatics of such =aps is a pr =pt, afficies: and acce==ical-=- er and to sini=ise po:en:ial disputes cones:- d g boundary _aps

- ssion by elec:ric suppliers."sub=1::ed :s :he C. d

In our opinion such a provisic vould. c: resul: in a viola: ice of a=77ederal acti::us: laws c: any Nuclear Regula:: 7 C- issica li:ensing :: di:10:s .

If :he Cc =issi: has any dcub vich respec: :o this =a::er, ve wculd apprecia:e~--ban oppor uni:7 :o =es: vi:h :he Cc==issics staf f :s discuss :he ca--=~ er

and sub=1: addi:10:a1 indor=a:ics is suppc:: ef our positice.

7e:7 : u17 yours,

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UNITED STATES OF AMERICANUCLEAR REGULATORY COMMISSION

Before the Atomic Safety and Licensing Appeal Board

In the Matter of ))

THE TOLEDO EDISON COMPANY and )THE CLEVELAND ELECTRIC ILLUMINATING ) Docket No. 50-346A

COMPANY )(Davis-Besse Nuclear Power Station, )Unit 1) )

)THE CLEVELAND ELECTRIC ILLUMINATING )

COMPANY, ET.AL. ) Docket Nos. 50-440A'

(Perry Nuclear Power Plant, ) 50-441AUnits 1 and 2) )

)THE TOLEDO EDISON COMPANY, ET AL. )(Davis-Besse Nuclear Power Station, ) Docket Nos. 50-500A

Units 2 and 3) ) 50-501A

CERTIFICATE OF SERVICE

I hereby certify that copies of the foregoing " Ohio Appli-~

cants' Comments on the Ohio Statute Requiring Certification of

Exclusive Service Territories for Electric Light Companies"

were served upon each of the persons listed on the attached Ser-

vice List, by hand delivering copies to those persons in the-

Washington, D.C. area, and by mailing copies, postage prepaid,

to all others, all on this 3rd day of November, 1978.

SHAW, PITTMAN, POTTS & TROWBRIDGE

S\ k'-

7By: s

Nm. Bradford Reyno QsCounsel for Applicants

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+

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UNITED STATES OF AMERICA#

NUCLEAR REGULATORY COMMISSION

Before the Atomic Safety and Licensine Appeal Boarf

In the Matter of ))

THE TOLEDO EDISON COMPANY and )THE CLEVELAND ELECTRIC ILLUMINATING ) Docket No. 50-346A

COMPANY )(Davis-Besse Nuclear Power Station, )Unit 1) )

)THE CLEVELAND ELECTRIC ILLUMINATING )

COMPANY, ET AL. ) Docket Nos. 50-440A(Perry Nuclear Power Plant, ) 50-441AUnits 1 and 2) )

)THE TOLEDO EDISON COMPANY, ET AL. )(Davis-Besse Nuclear Power Station, ) Docket Nos. 50-500AUnits 2 and 3) ) 50-501A

,

SERVICE LIST

Alan S. Posenthal, Esqture Ivan W. Smith, EsgaireChair: nan, Atomic Safety and Atanic Safety ard Licensing Board

Licensing Appeal Board U.S. Nuclear Pegulatory CamlissionU.S. Nuclear Pegulatory Comtission Washington, D.C. 20555Washington, D.C. 20555

John M. Frysiak, EsquireJerane E. Sharfman, Esquire Atanic Safety and Licensing BoardAtanic Safety and Licensing U.S. Nuclear Pegulatory Ccranissicn

Appeal Board Washington, D.C. 20555U.S. Nuclear Pegulatory CannissionWashington, D.C. 20555 Ataric Safety ard Licensing

Board PanelRichard S. Salzman, Escuire U.S. Nuclear Pegulatory Ca:InissionAtanic Safety and Licensing Washington, D.C. 20555

Appeal BoardU.S. Nuclear Pegulatory Ccmnission Docketing & Service Sectionmsh.ingten, D.C. 20555 Office of the Secretary

U.S. Nuclear Pegulatory CcmnissionAtanic Safety and Licensing Washington, D.C. 20006

Appeal Board Panel! U.S. Nuclear Pegulatory Ccmnission Joseph Rutberg, Esquire| Washington, D.C. 20555 Benjamin H. Vogler, Esquire| Pay P. Lessy, Jr., "@e

Office of the Executive Lecal DirectorU.S. Nuclear Pegulatory CcrtnissionWashington, D.C. 20555

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o- , s

-2-

Donald L. Flexner, Escuire Terence H. Benbow, EsquireMelvin G. Berger, Es @ e Steven A. Berger, EsquireJanet R. Urban, Esquire Steven B. Peri, ~@eAntitrust Division Winthrop, Sti:: son, Putnam & PcbertsU.S. De" A nt of Justice 40 Wall StreetP.O. Scx 481 New York, New York 10005Washington, D.C. 20044

Walter T. Wardzinski, EsquireReuben Goldberg, Es @ e General AttorneyGoldberg, Fieldman & Letham, P.C. Duquesne Light Cc panySuite 650 435 Sixth Avenue1700 Pennsylvania Avenue, N.W. Pittsburgh, Pennsylvania 15219

,

Washington, D.C. 20006David StNeil Olds, Es@e

Jack M. Schul:ran, Esquire Paed Smith Shaw & McClayDirector of Law Union Trust BuildingPobert D. Hart, Esquire Box 2009First Assistant Director of Law Pittsburgh, Pennsylvania 15230City of Cleveland213 City Hall Joseph A. Rieser, Jr., EsquireCleveland, Chio 44114 Peed Smith Shaw & McClay

Suite 900Frank R. Clokey, Esquire 1150 Connecticut AvenueSpecial Assistant Attorney General Washington, D.C. 20036Pocm 219hne House Apart:nents James R. Edgerly, EsquireHarrisburg, Pennsylvania 17105 Secretary and Ceneral cotmsel

Pennsylvania Pc e r CanpanyDonald H. Hauser, Esquire One East Washington StreetVictor F. Gr e.slade, Jr., Esquire New Castle, Pennsyl rania 16103William J. Farner, EsquireThe Cleveland Electric John Lansdale, Esqt ire

Illuminating Carpany Ccx, Langford & Brwn55 Public Square 21 Dupont Circle, N.W.Cleveland, Ohio 44101 Washington, D.C. 20036

Michael M. Briley, Esquim Alan P. Buchrann, EsquirePaul M. Smart, Esquire Squire, Sanders & DepseyFuller, Henry, Hodge & Snyder 1800 Jnion Ccmmerce BuildingPost Office Ecx 2088 Cleveland, Ohio 44115'Ibledo, Ohio 43603

Edward A. Matto, EsquinRussell J. Spetrino, ~ @ e Richard M. Firestone, Esquire

! Tharas A. Kayuha, Esquire Karen H. Mkirs, Es@eOhio Edison Carpany Antitrust Section

i 76 South Main Street 30 East Broad Street,15th FlcorAkron, Ohio 44308 Coltrbus, Ohio 43215'

Christopher R. Schraff, EsquireAssistant Attori.ey CeneralEnviromental Law Section361 East Bread Street, 8th FlecrColtrbus, Chio 43215

,