Tennessee Valley Authority v. United States

60 Fed. Cl. 665, 2004 U.S. Claims LEXIS 132
CourtUnited States Court of Federal Claims
DecidedJune 2, 2004
DocketNo. 01-249-C
StatusPublished
Cited by37 cases

This text of 60 Fed. Cl. 665 (Tennessee Valley Authority v. United States) is published on Counsel Stack Legal Research, covering United States Court of Federal Claims primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Tennessee Valley Authority v. United States, 60 Fed. Cl. 665, 2004 U.S. Claims LEXIS 132 (uscfc 2004).

Opinion

OPINION AND ORDER

LETTOW, Judge.

This action is one of a series of eases pending before the Court involving contracts between the federal government and the operators of the nation’s nuclear electric utilities for the disposal of spent nuclear fuel.1 Plaintiff, the Tennessee Valley Authority (“TVA”), challenges the alleged failure of the Department of Energy (“DOE”) to perform under a contract for the disposal of spent nuclear fuel (“SNF”) and related materials generated at two nuclear power plants owned and operated by TVA — its Browns Ferry and Sequoyah nuclear plants. As damages, TVA seeks its costs incurred in building on-site dry storage facilities for the spent fuel that it otherwise would have transferred to DOE under the contract. Before the Court are cross-motions for summary judgment styled as follows: (1) defendant’s Motion for Partial Summary Judgment Regarding Plaintiffs Greater than Class C Radioactive Waste Arguments, filed on November 28, 2001 (“Def.’s GTCC Mot.”), (2) defendant’s Motion for Partial Summary Judgment Regarding the Rate of Spent Nuclear Fuel Acceptance, filed on December 3, 2001 (“Def.’s Rate Mot.”), and (3) plaintiffs Motion for Summary Judgment, filed on October 23, 2002 (“Pl.’s Mot.”). The arguments presented in the parties’ motions for summary judgment have been fully briefed,2 and a hearing on the motions was conducted on April 2, 2004.

[667]*667At the hearing, the government’s counsel withdrew its GTCC motion on the ground that it is premature, and accordingly that motion is denied without prejudice. For the reasons set forth below, the Court denies the government’s rate motion because it lacks any legal basis on the undisputed facts of this case. TVA’s motion is granted in part insofar as liability for breach of contract is concerned, i.e., DOE is liable for its breach of its standard contract with TVA by failing to accept, transport, and dispose of spent nuclear fuel from TVA’s two nuclear plants, but TVA’s motion otherwise is denied.

This Opinion and Order also addresses the issue of the scope of the relief available to TVA in light of the unusual nature of the ongoing partial breaches of contract in this case. This issue was raised by plaintiff in its cross-motion and was addressed during the hearing on April 2, 2004.3 The Court orders that this case should proceed to trial on damages in a timely fashion, to address TVA’s damages accrued between the government’s initial alleged breach in 1998 and the conclusion of TVA’s fiscal year ending September 30, 2004.

BACKGROUND

The general factual background of the contracts and the surrounding circumstances underlying this and the other spent nuclear fuel cases have been recounted by this Court and the Courts of Appeals for the Federal and D.C. Circuits on a number of occasions. See Maine Yankee Atomic Power Co. v. United States, 225 F.3d 1336, 1337-40 (Fed.Cir.2000); Northern States Power Co. v. United States, 224 F.3d 1361, 1364 (Fed.Cir.2000) (“Northern States II”); Northern States Power Co. v. Dep’t of Energy, 128 F.3d 754, 756-58 (D.C.Cir.1997) (“Northern States I”); Indiana Michigan Power Co. v. Dep’t of Energy, 88 F.3d 1272,1273-74 (D.C.Cir.1996) (“Indiana Michigan I”); Commonwealth Edison Co. v. Dep’t of Energy, 877 F.2d 1042, 1043-15 (D.C.Cir.1989) (“Commonwealth Edison I”); Indiana Michigan Power Co. v. United States, 60 Fed.Cl. 639, 641-43, 2004 WL 1161880 at *2-3 (May 21, 2004) (“Indiana Michigan III”); Indiana Michigan Power Co. v. United States, 57 Fed.Cl. 88, 90-94 (2003) (“Indiana Michigan II”); Commonwealth Edison Co. v. United States, 56 Fed.Cl. 652, 654-55 (2003) (“Commonwealth Edison II”); Detroit Edison Co. v. United States, 56 Fed.Cl. 299, 300 (2003). As a consequence, the following recitation is limited to those facts necessary for an analysis of the pending motions.

In January 1983, Congress enacted the Nuclear Waste Policy Act (“NWPA”), Pub.L. No. 97-425, Title III, § 302, 96 Stat. 2257 (Jan. 7, 1983) (codified at 42 U.S.C. § 10222), authorizing DOE “to enter into contracts with any person who generates or holds title to high-level radioactive waste [‘HLW’], or spent nuclear fuel, of domestic origin for the acceptance of title, subsequent transportation, and disposal of such waste or spent fuel” in exchange for the payment of an initial amount and then recurring fees. 42 U.S.C. § 10222(a)(1). Congress mandated that the country’s nuclear plant operators, primarily electrical utilities, enter into such contracts with DOE as a prerequisite to obtaining renewal of their operating licenses. 42 U.S.C. § 10222(b). See also Maine Yankee, 225 F.3d at 1337 (“The [NWPA] effectively made entry into such contracts mandatory for the utilities.”). “The Act required that all such contracts ‘shall provide that’ [DOE] will dispose of the waste [or spent fuel] ‘beginning not later than January 31, 1998.’ ” Id. (quoting 42 U.S.C. § 10222(a)(5)(B)). In furtherance of the NWPA, DOE promulgated a Standard Contract for Disposal of Spent Nuclear Fuel and/or High-Level Radioactive Waste (“Standard Contract”), which Contract was codified at 10 C.F.R. § 961.11. The Standard Contract established the terms under which the government would “accept title to, transport, and dispose of ... spent fuel and waste ... [i]n exchange for ... fees specified in the contract.” 10 C.F.R. § 961.2. Although DOE was to begin collection of waste in 1998, no [668]*668collection began at that time, and no collection has occurred to date. DOE announced in 1995 that it does not anticipate making any such collection prior to 2010. Def.’s Proposed Findings of Uncontroverted Fact (“PFUF”) K 132; 60 Fed.Reg. 21,793, 21,794 (May 3,1995).

The Standard Contract did not establish a specific rate or schedule for the collection of SNF. Rather, it established a process by which a rate would be established for each utility. See Indiana Michigan II, 57 Fed.Cl. at 97; Commonwealth Edison II, 56 Fed.Cl. at 662-663. Under the contractual process, first, the utilities, including TVA, would submit to DOE proposed Delivery Commitment Schedules (“DCSs”) for DOE’s review and approval. Standard Contract Art. V.B., App. C. Such DCSs were to specify the amount of SNF the utility “wishefd] to deliver to DOE beginning sixty three (63) months thereafter.” Id., Art. V.B.I.

Free access — add to your briefcase to read the full text and ask questions with AI

Related

Boston Edison Company
Federal Claims, 2021
Anna F. Nordhus Family Trust v. United States
106 Fed. Cl. 289 (Federal Claims, 2012)
Haddon Housing Associates, LLC v. United States
99 Fed. Cl. 311 (Federal Claims, 2011)
Entergy Nuclear Vermont Yankee, LLC v. United States
95 Fed. Cl. 160 (Federal Claims, 2010)
United Partition Systems, Inc. v. United States
90 Fed. Cl. 74 (Federal Claims, 2009)
Filipczyk v. United States
88 Fed. Cl. 776 (Federal Claims, 2009)
Pacific Gas & Electric Co. v. United States
87 Fed. Cl. 246 (Federal Claims, 2009)
Teknowledge Corp. v. United States
85 Fed. Cl. 235 (Federal Claims, 2009)
PCL Construction Services, Inc. v. United States
84 Fed. Cl. 408 (Federal Claims, 2008)
Park Properties Associates, L.P. v. United States
82 Fed. Cl. 162 (Federal Claims, 2008)
Boston Edison Co. v. United States
80 Fed. Cl. 468 (Federal Claims, 2008)
Southern Nuclear Operating Co. v. United States
77 Fed. Cl. 396 (Federal Claims, 2007)
Vermont Yankee Nuclear Power Corp. v. United States
73 Fed. Cl. 236 (Federal Claims, 2006)
Yankee Atomic Electric Co. v. United States
73 Fed. Cl. 249 (Federal Claims, 2006)
American Federal Bank, FSB v. United States
72 Fed. Cl. 586 (Federal Claims, 2006)
Tennessee Valley Authority v. United States
69 Fed. Cl. 515 (Federal Claims, 2006)
Long Island Savings Bank, FSB v. United States
67 Fed. Cl. 616 (Federal Claims, 2005)
Bank of America, FSB v. United States
67 Fed. Cl. 577 (Federal Claims, 2005)

Cite This Page — Counsel Stack

Bluebook (online)
60 Fed. Cl. 665, 2004 U.S. Claims LEXIS 132, Counsel Stack Legal Research, https://law.counselstack.com/opinion/tennessee-valley-authority-v-united-states-uscfc-2004.