Rept On Settlement Negotiations Status.South TX Electric Cooperative .

oseJiJc.,/eIo - / S . UNITED STATES OF AMERICA BEFORE THE NUCLEAR REGULATORY COMMISSION In the Matter of: HOUSTON LIGHTING AND POWER CO., et al. [ South Texas Project, Units 1 and 2] TEXAS UTILITIES GENERATING COMPANY, et al. [ Comanche Peak Steam Electric Station, Units 1 and 2] 4 / DOCKETED USNRC g7 J{JN11tgm . - # - C.[* )) ) ) ) ) ) ) ) ) % s O P * Docket Nos. 50-498A 50-499A Docket Nos. 50-445A 50-446A REPORT OF SOUTH TEXAS ELECTRIC COOPERATIVE, INC. AND MEDINA ELECTRIC COOPERATIVE, INC. ON THE STATUS OF SETTLEMENT DISCUSSIONS In accordance with the Board's order of May 13, 1980, South Texas Electric Cooperative, Inc. and Medina Electric Cooperative Inc. (STEC/MEC), through their undersigned counsel, submit this report on the status of settlement negotiations in the abovecaptioned proceedings. STEC/MEC's role in the settlement process thus far has been a limited one. Undersigned counsel has made periodic telephone contact with counsel for several of the parties to these consoli- I dated antitrust proceedings, but, to date, neither STEC/MEC nor its counsel have been invited to participate in face-to-face settlement discussions with any of the major parties; moreover, during the past month, neither STEC/MEC nor its counsel have been favored with copies of any written memorandum'of understanding or other document embodying proposed terms of settlement in the South Texas Project proceeding. This is true despite the fact that k 7goSg\\ * 6 \ \ 8006200l N .

. . -2- undersigned counsel has, on several occasions, indicated an interest in being drawn in.to the settlement process in order to minimize the likelihcod that STEC/MEC would find it necessary to oppose a settlement which has previously been found satisfactory by all or most of the principal parties to the South Texas Project proceeding. STEC/MEC have no interest in unduly delaying resolution of the antitrust issues which have been presented here, nevertheless, STEC/ FEC would not be parties to this proceeding if they were not concerned with protecting certain interests which could be jeopardized by an adverse result in this proceeding. Despite the relatively passive role which they assumed during the lengthy discovery phase of these procecdings. STEC/MEC have devoted a significant share of their # limited resources to keeping abreast of developments in these proceedings and to prenaring for the hearing which may or may not eventuate. ' They have no intention of sitting idly by and witnessing the presentment of a settlement package which does little or nothing to alleviate their individual concerns. There is no question that an amicable settlement is preferable to protracted and intense litigation. Recognizing this, STEC/MEC pledge to be as flexible as they can in determining what they will and will not accept in the way of settlement. However, as with any other party, there exist for STEC/MEC thresholds which, in the performance of their fiduciary duties as REA cooperatives, they cannot conscientously cross in pursuit of a negotiated settlement. . , - - * - " -

. - : . ' 3 - STEC/MEC presently have no reason to believe that the settlement proposal (s) currently under consideration would not afford STEC/MEC the protection which they req" re. Nevertheless, so long as STEC/MEC are not privy to these proposals and the positions of the parties involved, STEC/MEC are simply rot in a position to state that settlement negotiations are going well, o; that this Board should further delay hearing to facilitate their continuation. 9 STEC/MEC stand ready to discuss their concerns with any and 1 all parties to these proceedings, private or governmental, in a bilateral or communal context. For the reasons stated above, STEC/MEC believe it imperative that they be 'crought into the settlement process With this understanding, STEC/MEC have no as quickly as possible. 4 objection to further dpferring the commencement of hearing in these proceedings in order to accon.modate those parties who feel a settlement can still be achieved. Respectfully submitted, Sedw r, Dated: June 9, 1980 Dougl"as F. ddhn ' 1101 Connecticut Avenue, N.W. OF COUNSEL: i Counsel for: Morgan Hunter, Esq. McGinnis, Lockridge & Kilgore South Texas Electric Cooperative, Inc. Texas State Bank Bldg - 5th Fl. and 900 Congress Avenue Austin, Texas 20036 Washington, D.C. . ' Medina Electric Cooperative, Inc. 78701 McDermott, Will & Emery Suite 1201 1101 Connecticut Avenua, N.W. Washington, D.C. 20036 L 4 . , . . , - -- - - '

's . / 6 DCCKKED USNRC - ' UNITED STATES OF AMERICA f:. .JUN11200 ' BEFORE THE NUCLEAR REGULATORY COMMISSION In the Matter of: Omee cf the ScMa'y W ) HOUSTON LIGHTING AND POWER CO., et al. (South Texas Project, Units 1 and 2] TEXAS UTILITIES GENERATING COMPANY, et al. [Cemanche Peak Steam Electric Station, Units 1 and 2] 4 & hi 8g :: , Docket Nos. 50-498A ) ) ) ) ) ) ) O 50-499A Docket Nos. 50-445A 50-446A CERTIFICATE OF SERVICE I hereby certify that copies of South Texas Electric Cooperative, Inc.'s and Medina Electric Cooperative, Inc.'s Report on the Status of Settlement Discussions in the above-captioned matters, were served upon the following persons by deposit in the United States mail, first class postage prepaid this 9th day of June, 1980, or by hand delivery as indicated by an asterisk. * Marshall E. Miller, Chairman Atomic Safety & Licensing Beard Panel Nuclear Regulatory Commission Washington, D.C. 20555 * Michael L. Glaser, Esquire 1150 17th Street, N.W. Washington, D.C. 20036 *Fredric D. Chanania, Esquire Michael B. Blume, Esquire Ann Hodgdon, Esquire Nuclear Regulatory Commission Washington, D.C. 20555 Chase R. Stephens, Chief *Sheldon J. Wolfe, Esquire Atomic Safety & Licensing Board Panel Nuclear Regulatory Commission Washington, D.C. 20555 Joseph Rutherg, Esquire Antitrust Counsel Nuclear Regulatory Commission Washington, D.C. 20555 R. Gordon Gooch, Esquire John P. Mathis, Esquire Baker & Botts 1701 Pennsylvania Avenue, N.W. Washington, D.C. 20006 Docketing & Service Station Office of the Secretary Nuclear Regulatory Commission Washington, D.C. 20555 Jerome Saltzman, Chief Antitrust & Indemnity Group Nuclear Regulatory Commission Washington, D.C. 20555 Stahl, Esquire Sarah F. Holzsweig, Esquire Isham, Lincoln & Beale 1120 Connecticut Avenue, N.W. Suite 325 Washington, D.C. 20036 Joseph I. Worsham, Esquire Merlyn D. Sampels, Esquire Spencer C. Relyea, Esquire , David M. Worsham, Forsythe & Sampels 2001 Bryan Tower Suite 2500 Dallas, Texas 75201 ' l 1

,s' . . - * 2- Susan B. Cyphert, Esquire Miller, Balis & O'Neil P. O. Box 14141 776 Executive Building 1031 Fifteenth Street, N.W. Department of Justice Washington,D.C. * 20444 ' Joseph Knotts, Esquire Nicholas S. Reynolds, Esquire Debevoise & Liberman 1200 17th Street, N.W. Washington, * D.C. 20036 Robert Lowenstein, Esquire Bouknight, Jr., Esquire William J. Franklin, Esquire J. A. Washington, D.C. 20005 William Sayles, Chairman and Chief Executive Officer Central Power & Light Company P. O. Box 2121 Corpus Christi, Texas 78403 Frederick H. Ritts, Esquire Law Offices of Northcutt Ely Watergate 600 Building Lowenstein, Newman, Reis, Washington, D.C. 1025 Connecticut Avenue, N.W. Washington, D.C. 20036 Wheatley & Wollesen Axelrad & Toll R. L. Hancock, Director City of Austin Electric Utility Department P. O. Box 1088 20037 1112 Watergate Office Building 2600 Virginia Avenue, N.W. Washington, D.C. G. K. 20037 Spruce, General Manager Austin, Texas 78767 City Public Service Board Jon C. Wood, Esquire ( W. Rogers Wilson, Esquire Matthews, Nowlin, Macfarlane San Antonio, Texas P. O. Box 1771 & Barrett ' Robert O'Neil, Esquire Antitrust Division 1500 Alamo National Building San Antonio, Texas 78205 Perry G. Brittain, President Texas Utilities Genarating Co. 2001 Bryan Tower Dallas Texas 75201 Don H. Davidson City of Austin Richard C. Balough, Esquire City of Austin P. O. Box 1088 Austin, Texas 78767 Michael I. Miller, Esquire Isham, Lincoln & Beale One First National Plaza Chicago, Illinois 60603 Austin, Texas 78701 Box 1088 Austin, Texas Jerry L. Harris, Esquire Don R. Butler, Esquire 211 East Seventh Street City Manager P. O. 78201 78767 Kevin B. Pratt, Esquire Linda Aaker, Esquire P. O. Box 12548 Capital Station Austin, Texas 78767 G. W. Oprea, Jr. Executive Vice President Houston Lighting & Power Co. P. O. Box 1700 Houston, Texas 77001 . p p w e ., -,. -,-

. . . . . -3E. W. Barnett, Esquire Charles G. Thrash, Jr., Esquire J. Gregory Copeland, Esquire Theodore F. Weiss, Jr., Esquire Baker & Botts . 3000 One Shell Plaza Houston, Texas 77002 * George Spiegel, Esq. Robert A. Jablon, Esq. Marc R. Poirer, Esq. Spiegel & McDiarmid 2600 Virginia Avenue, N.W. Washington, D.C. 20037 James E. Monahan Executive Vice President and Knoland J. Flucknett Executive Director Committee on Power for the Southwest, Inc. 5541 Skelly Drive Tulsa, Oklahoma 74135 Donald Clements, Esquire Gulf States Utilities Co. P. O. Box 2951 Beaumont, Texas 77074 Jay M. Galt, Esquire Looney, Nichols, Johnson & Hayes 219 Crouch Drive Oklahoma City, Oklahoma 73101 General Manager Brazos Electric Power Coop., Inc. P. O. Box 6296 Waco, Texas 76706 Western Farmers Electric Coop. P. O. Box 429 Andarko, Oklahoma 73005 Robert M. Rader, Esquire Conner, Moore & Corber 1747 Pennsylvania Avenue Somervell County Public Library P. O. Box 417 Glen Rose, Texas 76403 Washington, D.C. Maynard Human, General Manager 2000,6 Mr. G. Holman King West Texas Utilities Co. P. O. Box 841 Abilene, Texas 79604 W. N. Woolsey, Esquire Dyer and Redford 1030 Petroleum Tower Corpus Christi, Texas 78474 9t9 M.4 h Douglbb F. Joyp Attorney for: South Texas Electric Cooperative, Inc. and Medina Electric Cooperative, Inc. June 9, 1980 . v m w * g

Peak Steam Electric Station,) Units 1 and 2]) REPORT OF SOUTH TEXAS ELECTRIC COOPERATIVE, INC. AND MEDINA ELECTRIC COOPERATIVE, INC. ON THE STATUS OF SETTLEMENT DISCUSSIONS In accordance with the Board's order of May 13, 1980, South Texas Electric Cooperative, Inc. and Medina Electric Cooperative