Proposal Cuts Ratepayer Tab for San Onfore's Closure

A California Public Utilities Commission law judge blessed a settlement reached earlier this year that will limit what ratepayers have to pay for Southern California Edison’s San Onofre Nuclear Generation Station closure costs.

The settlement, approved late last week, would undo an earlier agreement approved by the commission in 2014 that would have stuck ratepayers with $3.3 billion of costs with the two utilities paying $1.4 billion. That deal was reopened due to improprieties in the initial closure cost settlement involving improper communications between Edison and CPUC officials.

Under CPUC Administrative Law Judge Darcie Houck’s proposed decision, ratepayer collections would cease retroactively. The date would depend upon the outcome of a related proceeding.

In that proceeding, Edison is asking the commission to apply $71.5 million of money received from the Department of Energy to reduce the closure costs.

If the CPUC approves Edison’s plan, the utilities would cease collecting ratepayer funds approved in 2014 retrospectively to Dec. 19, 2017. If the commission does not approve the plan regarding the DOE money, collections stop as of April 21, 2018.

Houck estimated that either way, the settlement would reduce ratepayers’ share of the total closure costs—which totaled $5.5 billion—from 56 percent, or $3.3 billion, to 40 percent, or approximately $2.2 billion. At the same time, it would increase utility costs from 27 percent, to 43 percent of the total, or about $2.265 billion. The judge noted that the other 17 percent of the closure costs are being covered by nuclear decommissioning funds, DOE credits, and other accounts.

Parties involved in the settlement include Edison, San Diego Gas & Electric, which owns a share of the plant, the Office of Ratepayer Advocates, The Utility Reform Network, labor unions, and a number of other groups.

Houck’s decision also would substitute a $12.5 million payment to the California State University system for a $25 million payment called for in the 2014 agreement to the University of California.

The proposed decision, issued June 22, could come before the commission as early as July 26 for approval.

Edison closed the plant along the northern San Diego County coast in 2013 after major new steam generators built by Mitsubishi failed. —William J. Kelly

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Proposal Cuts Ratepayer Tab for San Onfore’s Closure

William J. Kelly

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