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LOWENSTEIN, Newx AN, RErs. AxEtnAn & TOLL102 5 CON N ECTICUT AVE NU C, N. W.

WASHINGTON, D.C. 200 3 6aost.' sow t h.T t'= - _

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HAND DELIVER

Marshall E. Miller, EsquireMichael L. Glaser, EsquireSheldon J. Wolfe, EsquireAtomic Safety and Licensing BoardU.S. Nuclear Regulatory' CommissionWashington, D. C. 20555

Re: Houston Lighting & Power Company, et al.(South Texas Project, Units 1 and 2),Docket Nos. 50-498A-50-499A; Texas UtilitiesGenerating Company, et al. (Comanche PeakSteam Electric Station, Units 1 and 2),Docket Nos. 50-445A-50-446A

Gentlemen:

While Houston Lighting & Power Company elected not tosubmit comments to the Board on the question of consolidation,>-there is a-matter raised in the comments submitted by.the NRCStaff ("S taf f") and Central and Southwest Corporation ("C&SW")

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which warrants a.brief response.

Both the Staff and C&SW predicate their argument forseverance in-large part on the grounds that Houston intends

Inc. and thatto rely on a study performed by Stagg Systems,analysis of.this study will require such an extraordinary

-amount of time that moving. forward with a consolidated pro-cceding is undesirable.- The Board should be apprised thatStaff's and C&SW's contentions-are based on,a misconception.'

Ilouston does not intend to sponsor or rely on the Stagg Studyas.part of its' defense in this proceeding.

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LowensTcan Scws AN. R E s s, Axe tna n & To r.t.

Marshall E. Miller, EsquireMichael L.-Glaser, EsquireSheldon J.-Wolfe, EsquireMarch 21, 1980Page Two

Indeed, as Staff notes correctly: " Houston has main-tained throughout discovery that Mr. Stagg of Stagg Systems,Inc. was an outside, non-testifying consultant." (Staff Views

WeThat has been and remains his role in this case.at 4.)are truly|at a loss to understand how work he has done couldprecipitate a severance of the proceeding. Mr. Stagg has not

been designated as a witness, nor does any Houston witness inthis proceeding intend to testify about or rely upon Mr. Stagg'sstudy.

Evidently, the Staff and C&SW have misconstrued Houston's1980.supplementary inter rogatory answers filed February 27,Early in the case Houston received interrogatories requestingidentification of all documents which analyze the effect ofinterstate operations on Houston's systems or which describethe policies or bases upon which Houston has justified its oppo-sition to interstate operations.1/ Since then, Stagg Systems,

Inc completed in late December 1979, a study [Stagg Study II]for Houston's counsel which counsel determined should be sub-mitted to the Securities and Exchange Commission in Docket No.3-4951, a case which concerns C&SW's compliance with the Public

As that study has beenUtility Holding Company Act of 1935.published and relied upon in the SEC proceeding, a completesupplementary response to the aforesaid interrogatories requiredthat the Stagg Study be identified. Houston, accordingly, didso.2/ -Nothing more has transpired.

In short, Houston does not intend to call Mr. Stagg as awitness or rely on the Stagg Study in this proceeding, and thematters raised by the Staff and C&SW are simply based on a mis-

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apprehension. With this question resolved, comment upon theextraordinary amounts of time the Staff and C&SW suggest they

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would need to refute the :Stagg Study is unnecessary._J/

1/- CP&L Ints. (First Set) No. 9; Department of Justice Ints.-(First Set) No. 4.

2/ As far back as March 28, 1979, Houston similarly identifieda' previous Stagg Systems, Inc. study (Stagg Study I] in-

response to other interrogatories, HL&P's Ans. to CP&LInts. (Second Set) No. 25 (b) . No one suggested then thatthe1cxistence of such consultant studies had the slightesteffect on the structure of this proceeding, the course ofdiscovery, or any issue herein.

3/ Indeed, since Houston's hearir.g presentation presumably willfollow at least the Staff's, the Department's and C&SW's and

[footnoto continued on next page]

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Low :xstnis, kcwsax Reis. Arceuun & Tott ''

JM'arshall E. Miller, Esquire. Michael-'L.-Glaser, Esquire

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Sheldon J. Wolfe,-EsquireMarch 21,~1980Pace Three

Respectfull submitted,

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Lglas reen.

Counsel for Houston Lighting& Power Company

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(footnote' continued from previous page]

will'not commence'for some time, those parties would plainly.3/ ' have ample time to address this study even if Houston were- ~

relying'on it.. Since Houston is not, the issue never arises.

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UNITED STATES OF AMERICANUCLEAR REGULATORY COMMISSION

BEFORE THE ATOMIC SAFETY AND LICENSING BOARD

In the Matter of ))

HOUSTON LIGHTING & POWER COMPANY, ) Docket Nos. 50-498Aet al. ) 50-499A

)(South Texas- Project, Units 1 )

and 2) )))

TEXAS UTILITIES GENERATING COMPANY ) Docket Nos. 50-445Aet al. ) 50-446A

) .

(Comanche Peak Steam Electric )Station, Units 1 and 2) ) p,

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CERTIFICATE OF SERVICE

I HEREBY CERTIFY that copies of the foregoing:

Motion Of Houston Lighting & Power CompanyTo Quash Subpoena of Mr. Glenn W. Stagg

were served upon the following persons, by hand *, or by deposit

in the United States Mail, first class postage prepaid, this 21st

day of March 1980,

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'* Marshall-E. Miller,-Esquire * Frederic D. Chanania, Esquire

U.S. Nuclear Regulatory Commission Michael B. Blume, Esquire^

. Washington, 'D.C. :20555. _ Ann P. Hodgdon, EsquireU.S. Nuclear Regulatory Commission

*'' Michael L. - Glaser, Esquire Washington, D.C. 205551150 17th Street, N.W.Washington,.D.C. . 20555 Roff~ Hardy

Chairman and Chief-Executive* Sheldon J. Wolfe, Esquire Officer

U.S. Nuclear Regulatory Commission Central Power and Light Company

-Washington, D.C. 20555~ ' Post Office Box 2121,

Corpus Christi, Texas 78403Atomic Safety and Licensing

Appeal' Board Panel G.K. Spruce, General Manager

U.S. Nuclear Regulatory Commission City Public Service BoardWashington, D.C. 20555 Post Office Box 1771

San Antonio, Texas 78203Chase R. Stephens, Supervisor (20)*

Docketing and Service Branch Mr. Perry G. BrittainU.S. Nuclear Regulatory Commission PresidentWashington, D.C. 20555 Texas Utilities Generating Company

2001 Bryan Tower

Mr. Jerome D. Saltzman Dallas, Texas 75201Chief,-Antitrust and Indemnity

G.W. Oprea, Jr.GroupU.S. Nuclear Regulatory Commission Executive Vice PresidentWashington, D.C. 20555 Houston Lighting & Power Company

Post Office Box 1700J. Irion Worsham, Esquire Houston, Texas 77001Merlyn D. Sampels, EsquireSpencer C.'Relyea, Esquire R.L. Hancock, Director

'.Worsham, Forsyth & Sampels City of Austin Electric Utility2001 Bryan Tower, Suite 2500 Post Office Box 1086Dallas,. Texas. 75201' Austin,- Texas 78767

Jon C. Wood, Esquire Joseph Gallo, Esquire~Matthews, Nowlin, Macfarlane Robert H. Loeffler, Esq'dre-

&.Barrett David M. Stahl, Esquire3

1500 Alamo National Building. Isham, Lincoln & Beale.

San Antonio, Texas 78205 1120 Connecticut Avenue, Suite 325Washington, D.C. 20036

Charles G.-Thrash, Jr., Esquire-E.W. Barnett,~ Esquire Michael I. Miller, Esquire

Theodore.F.-Weiss, Esquire James A. Carney, EsquireJ. Gregory Copeland, Esquire Sarah Welling, EsquireBaker & Botts Martha E. Gibbs, Esquire3000;One Shell Plaza Isham, Lincoln & Beale' Houston, Texas 77002 One First National Plaza

Suite 4200-R. Gordon-Gooch, Esquire- Chicago, Illinois 60603. Steven R. Hunsicker, EsquireBaker & Botts1701 Pennsylvania _ Avenue

. Washington, D.C. .20006

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: Don'R._ Butler,. Esquire David A. Dopsovic, Esquire211 East Seventh Street Frederick H. Parmenter, Esquire

Austin, Texas 78701 Susan B. Cyphert, EsquireNancy A. Luque, Esquire

Mr. William C. Price- Robert Fabrikant, Esquire

Central Power & Light Company Energy Section Antitrust Division' Post Office Box 2121 U.S. Department of JusticeCorpus (1risti, Texas 78403 P.O. Box 14141

Washington, D.C. 20044

Mr. G. Holman-KingWest Texas Utilities Company Morgan Hunter, EsquirePost Office Box 841 Bill D. St. Clair, Esquire

Abilene, Texas 79604 McGinnis, Lockridge & KilgoreFifth Floor

Jerry L. Harris, Esquire Texas State Bank Building

Richard C. Balough, Esquire 900 Congress Avenue-

City of Austin Austin, Texas 78701

Post Office Box 1086Austin, Texas 78767 W.S. Robson

General Manager

Joseph-B. Knotts, Jr., Esquire South Texas Electric Cooperative,Nicholas S. Reynolds, Esquire Inc.

C. Dennis Ahearn, Esquire Route 6, Building 102

Debevoise & Liberman Victoria Regional Airport1200 Seventeenth Street, N.W. Victoria, Texas 77901Washington, D.C. 20036

Robert C. McDiarmid, Esquire

Don H. Davidson George Spiegel, EsquireCity Manager Robert A. Jablon, Esquire

City of Austin Marc R. Poirier, Esquire

P.O. Box 1088 Spiegel & McDiarmid' Austin, Texas 78767 2600 Virginia Avenue, N.W.

Suite 312Jay Galt, Esquire- Washington, D.C. 20037Looney, Nichols, Johnson & Hays219 Couch Drive Kevin B. PrattOklahoma City, Oklahoma 73102 Texas Attorney General's Office

Post Office Box 12548Knolant J. Plucknett Austin, Texas 78711

Executive DirectorCommittee on Power for the South- William H. Burchette, Esquire

west, Inc. Frederick H. Ritts, Esquire

5541 East Skelly Drive Law Offices of Northcutt Ely

Tulsa, Oklahoma 74135 Watergate 600 BuildingWashington, D.C. 20036

John W. Davidson, EsquireSawtell, Goode, Davidson & Tioili Tom W. Gregg, Esquire1100 San Antonio Savings Building Post Office Box Drawer 1032San Antonio, Texas 78205 San Angelo, Texas 76902

Douglas.F. John,. Esquire Leland F. Leatherman, Esquire.McDermott,_Will and Emery McMath, Leatherman & Woods, P.A.-1101' Connecticut Avenue, N.W. -711 West Third Street

Suite 1201 Little Rock', Arkansas 72201Washington, D.C. 20036

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iPadl'W.~Eaton, Jr.,-Esquire'llinkle, Cox, Eaton, Coffield &.Hensley-600--Henkle BuildingPost-Office Box 10

;Roswell, New. Mexico 88201'

Robert M. Rader, EsquireConner,. Moore &.Corber1747. Pennsylvania Avenue, N.W.Wa'shington, D.C. 20006

W.N. Woolsey, EsquireKleberg,. Dyer, Redford & Weil1030 Petroleum TowerCorpus Christi, Texas 78474

Donald M. Clements, Esquire' Gulf States Utilities CompanyPost Office Box 2951Beaumont, Texas 77704 -

Dick Terrell Brown, Esquire800 Milam Building.San Antonio, Texas 78205

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