0316 PAGE 228
RESOLUTION NO. 3 1 6 (#3-84)
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF JACKSONVILLE,
ARKANSAS, CONDEMNING THE ACTIONS OF A FEDERAL ENERGY REGULATORY
COMMISSION (FERC) ADMINISTRATIVE LAW JUDGE AND FERC'S STAFF RE-
GARDING THEIR DECISION AND POSITION ON THE QUESTION OF THE
ALLOCATION OF COSTS OF NUCLEAR FIRED ELECTRIC GENERATING
STATIONS IN THE STATES OF LOUISIANA AND MISSISSIPPI, MAKING
STATEMENTS AND RECOMMENDATIONS RELATIVE THERETO AND AUTHORIZING
AND DIRECTING OPPOSITION TO SUCH DECISIONS
WHEREAS, a FERC Administrative Law Judge (ALJ), 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 36%
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, the decision of the FERC, not yet made 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 CITY COUNCIL OF THE
CITY OF JACKSONVILLE, ARKANSAS:
SECTION 1: The City Council of the City of Jacksonville,
Arkansas, condemns the actions of the FERC Administrative Law Judge,
in Docket No. 82 -616. The 82 -616 decision is without any precedent
or other legal authority and would impose the costs of an expensive,
un- needed 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 City Council of the City of Jacksonville,
Arkansas, makes the following statements and recommendations:
PAGE 229
RESOLUTION NO. 3 1 6 ( #3 -84) PAGE TWO
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 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 mega- watts, less
than 25% of the electrical output of Arkansas Nuclear One, 1 and 2.
D. The radical and arbitrary findings of the FERC Adminis-
trative Law Judge in Docket No. 82 -616, to the effect 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 should be encouraged to introduce
federal legislation amending the Public Utility Holding Company Act
of 1935 and the Federal Power Act to overrule this decision it if
is upheld on appeal.
SECTION 3: This Resolution shall be in full force and effect
from and after its passage and approval and a copy shall be provided
to members of the Arkansas Congressional Delegation and to the
Arkansas Public Service Commission.
APPROVED AND ADOPTED THIS 15th DAY OF March 1984.
49' 7 -_ il
j OR
ATTEST:
CITY CLERK
APPROVED AS TO FORM:
C1T ATTORNEY