Southern California Edison, San Onofre Nuclear Generating Station operator, failed to keep separate books for ratepayer funds spent on safety of the plant while in shutdown v. the price of charging for the plant as an \u201casset\u201d on the utility\u2019s portfolio. That was one of several anomalies revealed during the first week of California Public Utilities Commission hearings on whether to keep charging Edison and San Diego Gas & Electric ratepayers for the cost of the nuclear facility. The hearings were conducted May 13-17. The first part of the hearings\u2014expected to last over a year\u2014are to address \u201cbasic operations and maintenance and capital spending in light of the changed circumstances of a non-operational nuclear power plant,\u201d administrative law judge Melanie Darling said. The current phase of the hearings\u2014broke into several phases at this point\u2014is set to address 2012 \u201cjust and reasonable\u201d revenue requirements for the plant\u2019s expenses. \tRatepayers are on the hook for about $400 million for San Onofre costs in 2012. \tCost issues revealed in the first week of hearings included that: * Edison did not keep safety-related investments separate from other investments. They are amalgamated as \u201casset protection,\u201d according to one Edison witness; * After Edison installed new steam generators, the utility also invested in new high-pressure turbines in an attempt to eke out another 24 MW from the facility. The price of those turbines were not detailed, but it was noted that the nuclear plant was expected to run at a higher pressure in order to get the extra megawatts from the new turbines; * The radioactive fuel in unit 3 was removed last year. An Edison witness noted that the cost of the fuel should remain in ratebase because \u201cour plan is to restore the unit\u201d; and * Mitsubishi Heavy Industries, the steam generator manufacturer, was in contact with Edison for repair or replacement of the defective equipment, but did not offer any specific repair plan in 2012. \tCustomers from both the operating utility\u2014Edison\u2014and its 20 percent owner\u2014SDG&E\u2014are liable for charges for the non-operational facility. It was closed in January 2012 after excessive steam tube wear caused a radioactive leak. \tPrior to the shutdown, Edison was advocating for a 20-year license extension at the federal level for the facility. Despite the uncertainty, Edison continues to push for a restart of unit 2 (see page 13). For unit 3, Jose Luis Perez, Edison principal manager, generation and regulatory, said the utility is not \u201ccurrently\u201d planning for a permanent shutdown.