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Southern California Edison, former operator of the shuttered San Onofre Nuclear Generating Station, claimed yesterday (August 12) that its customers should bear the cost of prematurely shuttering the plant, as reported in the Los Angeles Times.

According to Edison, “If a utility asset must be retired before the end of its expected life, the utility recovers from customers its reasonable investment costs.”

Ratepayers, in fact, have already paid a significant portion of the estimated $4.1 billion decommissioning cost – Edison has collected $2.7 billion from its customers over the years, while clients of San Diego Gas & Electric and the City of Riverside’s electric utility had contributed another $927 million as of December 2012, leaving funding for the retirement of the two remaining reactors about $500 million short.

Even though their liability under a warranty provided to Edison is capped at $138 million, the utility has filed suit against Mitsubishi Heavy Industries, manufacturers of the faulty steam generators that failed, releasing a small amount of radiation into the atmosphere and ultimately leading to the plant’s closure. Edison seeks as much as $2 billion for other losses related to the closure, including the purchase of replacement energy during the plant’s outage.

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Comments

Diogenes Aug. 13, 2013 @ 8:45 a.m.

Sure, socialize the costs so SCE shareholders do not experience a loss. They should receive profits only since SCE has their political connections. One problem, Michael Aguirre is representing the ratepayers.

In the seventies. A shareholder wrote to the board of SCE and Sempra Energy advising that, aa a long-term resident of San Clements, he had witnessed the demise of the original reactor, Big Blue. The decontamination from that took years.

He urged that a gas-powered plant be installed instead. The response.was a visit by corporate honchos offering to purchase his shares at a premium, which he refused. He still receives shareholder information that he shares with anti-nuclear people.

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CaptD Aug. 14, 2013 @ 1:33 p.m.

This is just too FUNNY, first SCE promises that their new SCE designed replacement steam generators will save ratepayers over a Billion dollars and then when they fail almost as soon as they were installed, SCE now thinks we the ratepayers should foot the bill!.

HA HA HA

Get ready SCE, because now the ratepayers are going to demand that the CPUC not only make you and your Shareholders cough up the money but also pay for all the additional expenses that are going to be incurred because of your debacle!

Some estimate that bill to be about $13 Billion, so the next CPUC meeting being held in San Diego (imagine that) to discuss rebates will be very interesting.

Notice that SDG&E, a part owner of San Onofre is laying low after informing their ratepayers that everyone bills will be going up, I wonder why, could it be to reimburse the Utility for the damages they will be force to pay for their part of the San Onofre debacle?

Ratepayers are being suckered by the Utilities and the CPUC that is supposed to regulate them for the public good, instead the Utilities have earned record profits while we the ratepayers are paying the highest rates in the USA thanks to the CPUC and we have enough of sunshine to become an solar energy exporter to states that need it, which would also jump start our economy with many new GREEN jobs.

We the ratepayers need to urge the Governor to re-populate the CPUC with impartial commissioner that will demand that the Utilities start treating us fairly instead of like the Utilities energy slaves!

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