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UNITED STATES OF AMERCIA 97NUCLEAR REGULATORY COMMISSION - FEB 19tgg > q

Ob d the Secr% .

9 DW at i Service

|BEFORE THE ATOMIC SAFETY AND LICENSING BOARD BTWh /

i~' '

,

,

| In the Matter of ) gh OPacific Gas & Electric Company, ) Docket P-564-A g'f ,\(Stanislaus Nuclear Units 1 )

and 2) ) p

il % ,IQ;%3 msw!'L2

% 'NMOTION OF THE NORTHERN CALIFORNIA POWER k a, Q

.

TO.M''AGENCY TO COMPEL PRODUCTION OF DOCUMENTS,

?) WITHHELD BY PACIFIC GAS AND ELECTRIC COMPANY.

i

i The Northern California Power Agency ("NCPA")

hereby moves the Board for an order compelling Pacific Gas

and Electric Company ("PG&E") to produce documents withheld;

from production in this proceeding under a now abrogated

i agreement of counsel. l_/ As will be described in detail,

| below, under this agreement between PG&E and NCPA, insisted! upon by PG&E, both parties have withheld admittedly rele'-'

vant, nonprivileged documents from production to the other

! parties under claim of " Business Secrets-Negotiations," ori

i a similar rubric. These documents relate solely to the

i!

|

| 1/ No other party to this proceeding has concurred in this +

agreement.

.

\

8 102200032 A,

. - . . . . - . . - - . -- . . - -. - - _ . - -.

._ _ . _. ._ _ _ - - - _ . . - , _ _ _ . .

. .

-2-

on-going negotiations between NCPA and PG&E for an intercon-,

nection agreement which would enable NCPA to transmit power

generated at its proposed generation projects to its members

f over PG&E's regional transmission system. Now, at the ele-

venth hour of a proceeding before the Federal Energy

Regulatory Commission, 1/ and after the drafting of a Joint

Motion for it and the NRC staff to sign which would cut off

. production of these documents, PG&E has unilaterally abro-1

I gated this agreement and submitted testimony characterizing

the position of both parties to these negotiations. In

'ight of PG&E's actions, the agreement is clearly voided and

NCPA believes each party to it should timely produce all

such documents in its possession to the other parties to

this proceeding, consistent with its obligations under this

Board's discovery orders. NCPA hereby requests that PG&E be

specifically directed to immediately comply with these

outstanding discovery orders.

NCPA has been engaged in active negotiations with

PG&E for a viable interconnection agreement for the past

decade. As detailed in the letter of October 1, 1979, to

! counsel for PG&E which is Attachment A, with the onset of

discovery in this proceeding PG&E insisted th - such nege-

tiations be maintained as privileged. PG&E indicated that

i the absence of such an agreement as to confidentiality would

have a significant chilling effect on the on-going,

negotiations. The agreement was to apply to any

>

1/ Pacific Gas and Electric Company, FERC Docket Nos.E-7777 (II).and E-7796.

. _ . . _ _ . . . . _ . _ . _ _. _ _ _ _ _ . _ . _ _ . . _ . _ _ _ _ . _ . . . _ . . _ . ,. _. _ . _ _ , _ _ . ..-- _

. .

-3-

negotiations which took place and related materials which

were created following September, 1977. NCPA has honored

this agreement by withholding all such documents in its

possession, not otherwise privileged, under the agreed upon

rubric of " Business Secrets-Negotictions." 1/ In addition,

NCPA has refrained from presenting testimony and documentary

evidence throughout the course of the 19 months of hearings

still in progress before the FERC in the joint dockets E-7777

(II) and E-7796. 2/ PG&E'c recent conduct in that pro- '

ceeding evidences its own contempt for this agreement and

willingness to disregard it. Specifically, PG&E filed the

prepared testimony of a former General Manager of NCPA on

January 23, 1981. PG&E has also stated its intention to

file yet further testimony on or about February 25, 1981.

This testimony deals directly with the very negotiations

which PG&E had insisted remain confidential. PGLE's conduct

thus abrogates this agreement.

NCPA has, throughout the course of this proceeding,

recognized that regardless of the intentions of _ PG&E and

1/ Documents appro; riately falling within the ambit ofthe attorney-client and work product privileges have besnwithheld under those claims, as well.

2/ NCPA's adherence to this agreement has continued in theface of sporadic efforts by PG&E, during the course of thecross examination of NCPA witnesses, to breach theagreement to its own advantage.

__ - . .- - - - .

.

-4-

. itself, this bilateral agreement has viability only at the

sufferance of the.others litigants in this case. NCPA has

endeavored to ensure that all parties to this proceeding

have been aware of this agreement and its status. 1/

While no other party agreed with this arrangement or in any

way indicated that it would waive its rights to formally

seek production of these documents at the appropriate time,

until this time no other party has formally sought to $)mpel

this production..

The production of these materials should be

completed immediately. PG&E will no doubt argue that the,

production of these documents should be deferred pending the

resolution of the Joint Motion of PG&E and the staff to

suspend discovery. This argument should be rejected. These

documents are no longer the subject of any cognizable claim,

of privilege. They are documents, easily identified and

locateo, for which production can be made within a matter of

a couple of weeks. As such, like the documents which PG&E

selected in the files of DWR, which are proposed to be

exempted from this discovery suspension under the Joint

Motion, the production of these documents is a mechanical

function only. Moreover, the discovery in this proceeding

has served as discovery in the FERC's Helms Creek 2/ docket,

as well, so it would scarcely be a mooted effort.

1/ See the letter of October 26, 1979, which is attachmentB.

2/ FERC Project Nos. P-2735 and 1988.

, , . --, . _ _ _ . , _ _ . _ - _ _ _ _ - -. . . . _ . _ . . . .- - _ . , _

-5-

As evidenced by Attachment A and B, NCPA also has

an agreement with PG&E whereby both parties nay withhold

documents which may be sensitive because they relate to pro-

jects and resources for which NCPA and PG&E are actual or

potential competitors. 1/ In addition, both parties

have agreed to withhold documents relating to billing

arangements and payments between client and counsel. NCPA

intends to continue to honor these agreements unless and

until they are abrogated by PG&E, or terminated by order of

this Board.'

There can be no question as to the relevance and

probative value of the withheld documents relating to the

negotlations over an interconnection agreement. NCPA firmly

believes that production of these documents in PG&E's

possession will demonstrate a concerted effort on the part

of PG&E to frustrate the development of competitive NCPA

resources. PG&E's abrogation of this agreement removes the

last valid basis for the Company's withholding of thisi

| material.

1/ If production of these materials were ordered by theBoard, NCPA would seek an appropriate protective orderlimiting their analysis and dissemination to outsidecounsel.

|

|[

-6-

CONCLUSION

For the foregoing reasons, NCPA requests an order

which requires the inanediate production of these materials

withheld by PG&E. NCPA is prepared to voluntarily produce

like documents it has withheld by whatever date set by the

Board for PG&E's compliance.

Respectfully submitted,

s -

/ ) ?o

gM < W W I!A.John Michael Adragna

,.

Attorney for the NorthernCalifornia Power Agencyand its members.

February 19, 1981

Law offices of:

,

! Spiegel & McDiarmid

| 2600 Virginia Ave., N.W.I Washington, D.C. 20037

(202)-333-4500

|

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Jack Goldberg, Isq.".5. Nuclear Regula:Ory Cet=issionWashing:=n, D.C. 20555

Peter I. Ma :, Isq..

Spiegel & McDiar=id2500 *Tirginia Avenue, N.W.*iashing:en,. 0.C. 20037

P.e : Pacific Gas & Electric C:mpany,(Stanislaus Nuclear Uni: Nc. 1),NF.C Cceke: No. ?-564A

Gentlecen:

The Northern California Pcwer Agency ("MC?A") andPacific Gas and Ilectric Company ('?G&I') are currently pre-ducing documents pursuan := several agreenents under whichdocuments pertaining to :he fellcwing subjects ' are withheldfres pr: duction:

Billing arrange =ents and paymentsbetween client and counsel.occu=ents e.s. dv.in, cniv th's kihd,

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cf inf=r ation are to be tr. ated assensitive and irrelevant;

on-going current set of negotiationsbetween PG&I and NC?A. This agree-ment was reached at a =eeting betweenMessrs. Ingraham and Hughes of NC?Aand Messrs. Caines and Gallavan ofPG&E in mid-September, 1?77, ceshcrtly thereaf ter, and reaffi:medlater when PG&I suggested,v

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UNITED STATES OF AMERICANUCLEAR REGULATORY COMMISSION

BEFORE THE ATOMIC S AFETY AND LICENSING BOARD

In the Matter of )Pacific Gas & Electric Company ) NRC Docket No. P-564-A(Stanislaus Nuclear Project, )Units 1 and 2) )

; CERTIFICATE OF SERVICE

I hereby certify that copies of the MOTION OF THENORTHERN CALIFORNIA POWER AGENCY FOR A PROTECTIVE ORDER inthe above-captioned proceeding have been served on thefollowing by deposit in the United States mail, first class,this 19th day of February, 1981.

Marshall E. Miller, Esq., Chairman Docketing and Service StationAtomic Safety and Licensing Board Office of the Secretary

,

U.S. Nuclear Regulatory Commissica U.S. Nuclear RegualtorySeymour Wenner, Esq. CommissionAtomic Safety and Licensing Board Washington, D.C. 205554807 Morgan DriveChevy Chase, Maryland 20015 George Deukmejian

Attorney General of CaliforniaSheldon J. Wolfe, Esq. Michael J. Strumwasser

i Atomic Safety and Lic6naing Board Deputy Attorney General ofU.S. Nuclear Regulatory Commission CaliforniaWashington, D.C. 20555 3580 Wilshire Boulevard

Suite 600-

Donald A. Kaplan, Esq. Los Angeles, California 90010P.O. Box 14141Washington, D.C. 20044 H. Chester Horn, Jr.,

Deputy Attorney GeneralJerome Saltzman, Chief Of fice of the Attorney GeneralUtility Finance Branch 3580 Wilshire Blvd., Suite 800

: U.S. Nuclear Regulatory Commission Los Angeles, California 90010| Washington, D.C. 20555'

Atomic Safety and Licensing BoardPhilip A. Crane, Jr., Esq. U.S. Nuclear Regulatory CommissiorGlen West, Esq. Washington, D.C. 20555Richard L. Meiss, Esq.Pacific Gas & Electric Company Morris M. Doyle, Esq.P.O. Box 7442 William H. Armstrong, Esq.San Francisco, California 94106 Terry J. Houlihan, Esq.

i Meredith J. Watts, Esq.1 Clarice Turney Jane E. Cosgriff, Esq.| 3900 Main Street McCutchen, Doyle, Brown & Enersen: Riverside, California 92521 Three Embarcadero Center

28th FloorJoseph Rutberg, Esq. San Francisco, California 94111Benjamin H. Vogler, Esq.Jack R. Goldberg, Esq.NRC Staff Counsel

*U.S. Nuclear Regulatory CommissionWashington, D.C. 20555 g

_nx DxuJChn Michael'Adragna f

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