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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