HomeMy WebLinkAbout37-84 RESOLUTION•
RESOLUTION NO. 37-84
A RESOLUTION CONDEMNING THE DECISION OF A FEDERAL ENERGY
REGULATORY COMMISSION (FERC) ADMINISTRATIVE LAW JUDGE
ON THE ALLOCATION OF COSTS OF NUCLEAR FIRED ELECTRIC
GENERATING STATIONS IN THE STATES OF LOUISIANA AND
MISSISSIPPI AND REQUESTING THE ARKANSAS CONGRESSIONAL
DELEGATION TO INTRODUCE LEGISLATION TO OVERRULE SAID
DECISION.
WHEREAS, a FERC Administrative Law Judge, on the 3rd
day of February, 1984, in FERC Docket No. 82-616, issued an
Order requiring the Arkansas Power and Light Company to
purchase 367 of the capacity and energy of the Grand Gulf
Nuclear Generating Station in the State of Mississippi; and
WHEREAS, in FERC Docket No. 82-483, the staff of the
FERC, Louisiana Public Service Commission, and others are
advocating that the Arkansas Power and Light Company and its
rate -payers assume the payment of portions of the costs of
not only the Grand Gulf Nuclear Station, but also the
Waterford III Nuclear Generating Station in Louisiana; and
WHEREAS, the decision of the Administrative Law Judge in
FERC Docket No. 82-616, the Grand Gulf case, could ultimately
cost the rate -payers of the State of Arkansas, an additional
two hundred eighty million dollars ($280,000,000) per annum; and
WHEREAS, a similar decision in Docket No. 82-483, the Middle
South System Agreement case, could cost the rate -payers of the
State of Arkansas, an additional seventy million dollars
($70,000,000) per annum;
NOW, THEREFORE, BE IT RESOLVED BY THE BOARD OF DIRECTORS
OF THE CITY OF FAYETTEVILLE:
Section 1. The Board. of Directors condemns the decision
of the FERC Administrative Law Judge, in Docket No. 82-616
because said decision is without any precedent or other legal
authority and would impose the costs of an expensive,
unneeded Nuclear Generating Station, in the State of
Mississippi, on the rate -payers of the State of Arkansas,
whose citizens had no input or other decision making authority
with respect to the location of or need for such Nuclear
Generating Station and whose electrical power and energy
demand requirements make such plant unnecessary.
Section 2. The Board of Directors states:
A. It is grossly unfair to the rate -payers of Arkansas
to pay for nuclear fired electric generating stations in
Mississippi and Louisiana which were never authorized or
approved by officials of the State of Arkansas.
B. The two nuclear plants in question have a combined
cost of approximately 5.2 billion dollars, with the Arkansas
share for Grand Gulf alone of approximately 1 billion dollars.
C. Arkansas Power and Light Company, in apparent good
faith, planned, sought approval from the Arkansas Public
Service Commission for, constructed and financed, with the
assistance of Arkansas rate -payers, Arkansas Nuclear One Units
1 and 2 in the late 1960's and 1970's. The Arkansas nuclear
generators had a total cost of approximately one billion
dollars ($1,000,000,000) and have a combined electrical output
of 1694 mega -watts. The Arkansas share of the Grand Gulf
unit alone, (under the decision of the FERC ALJ), also has
a cost of approximately one billion dollars ($1,000,000,000)
yet the capacity assigned to Arkansas is only 405 MW, less
than 25% of the electrical output of Arkansas Nuclear 1
and 2.
Section 3. The radical and arbitrary findings of
the FERC Administrative Law Judge in Docket No. 82-616,
that Arkansas Power and Light Company is not an autonomous
entity, subject to regulation in Arkansas, violates all
legal precedent; and, the Arkansas Congressional delegation
is hereby requested to introduce federal legislation amending
the Public Utility Holding Company Act of 1935 and the Federal
Power Act to overrule this decision, if it is upheld on appeal.
Section 4. This Resolution shall be provided to members
of the Arkansas Congressional Delegation and to the Arkansas
Public Service Commission.
PASSED AND APPROVED this 6th day of
APPROVED:
F' fie
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March
, 1984.