San Clemente

Edison & SDG&E Propose Settlement Agreement on San Onofre Outage

San Francisco (2014-03-27) -- A settlement conference was called by  Southern California Edison, SDG&E and leading ratepayer advocates, the  Office of Ratepayer Advocacy (ORA) and The Utility Reform Network  (TURN). Those parties worked for the past several months behind closed  doors to craft an agreement which was exposed today. The conference was  at 10am but the actual settlement was confidential until after the close  of the markets today at 4pm ET, and a release by Edison on their  website, which you can see in their SCE 8K filing listed on this page:

http://phx.corporate-ir.net/phoenix.zhtml?c=85474&p=irol-secEdison

Other parties of the proceeding attended and  reviewed the settlement, and were encouraged to ask detailed questions  about it.

In a nutshell, the settlement benefits ratepayers by about $1.4 billion savings over what Edison had originally asked for in the investigation.

Key points are:

  • Edison will receive no compensation in rates after Feb 1, 2012 for the plant.
  • All monies collected since Feb 1, 2012 as if the plant were still operating will be refunded to ratepayers.
  • On the other hand, Edison will be compensated for power purchased after the start of the outage, paid at "market prices" through the normal review mechanisms. This does not include "forgone sales".
  • Most of the expenditures in an attempt to restart the plant will be written off -- all of those for 2012 and a portion in 2013.
  • Edison will attempt to resell unused nuclear fuel and return that to ratepayers, with 95% /5% split in favor of ratepayers.
  • Edison will be able to aggressively salvage assets of the plant, returning any realized revenue at 95% to ratepayers and 5% to investors.
  • Investors will be able to recapture their investment in the original plant, not including the replacement steam generators, amortized at 2.62% over 10 years.
  • This agreement must be approved by the actual Commission before it becomes active.
  • The comment period is 30 days.
  • The total deal was $1.4 billion less than what was requested by Edison and SDG&E but the utilities are still compensated about $3.3 billion for their remaining interest in the plant, replacement power, and other costs.
  • Savings to ratepayers will offset substantial deficits in the ERRA account, which is used to balance energy purchases and ratepayer revenue.  However, after 2015, ratepayers will continue to see a benefit from the closure at the rate of about $600 million per year
  • These savings may be offset by other infrastructure that is needed to get the power where it is needed in California (even though we generate about 56% more than we use, statewide).

Ray Lutz, National Coordinator for Citizens Oversight and a party at the proceeding under the banner "Coalition to Decommission San Onofre" commented, "I was pleasantly surprised that they had eliminated the overly-complex accounting of the plant, in their attempt to show that it  was partially used (23%) after the shutdown. Instead, the settlement  agreement uses the approach we advocated, a clear-cut and immediate  change in status of the plant from "used and useful" to "abandoned"  after January 31, 2012, and then dealing with the spent fuel pool and  dry-cask storage as part of the decommissioning process.

"The plant is thus to be taken out of rates as of Feb 1, 2012, and all  rates collected for the plant since that time refunded to the ratepayer  through the ERRA balancing account. This account has been in a  substantial deficit situation and so the ratepayer won't see any  immediate reduction, but after 2015, we should realize a benefit of $600  million a year by not running the plant, and buying power at lower  prices on the energy markets instead of paying extra for this failed plant.

"Our organization will be reviewing the settlement agreement and we will  likely file a formal comment, however, it  oes seem like a reasonable  compromise in many respects at first glance. "

Coalition to Decommission San Onofre

Proposed Decision in CPUC Investigation of San Onofre Outage

Has Good News and Bad News for Ratepayers

(San Diego) Agreeing with the position taken by the Coalition to Decommission San Onofre (CDSO) and other public interest advocates in the California Public Utilities Commission's (CPUC) investigation into the San Onofre outage of 2012-2013, the assigned Administrative Law Judges (ALJ) have published a Proposed Decision in Phase 1 of the investigation, dealing with 2012 expenditures during the outage:

However, we find [Southern California Edison] SCE to be single-minded about its restart plan, and slow to understand the technical challenges and regulatory timeframe required to implement it. SCE’s decision to apply resources to a restart plan was the result of an unsound decision-making process, primarily because SCE did not consider cost effectiveness or alternatives such as putting Unit 2 into preservation mode, or realistically assess the regulatory hurdles blocking a reasonably foreseeable restart.

The ALJ's Proposed Decision calls for the first refund to the ratepayers of SCE and San Diego Gas & Electric (SDG&E) due to the unplanned outage of the twin nuclear reactors at the San Onofre Nuclear Generating Station, of $94 Million. This preliminary refund reflects only the over-collection of funds from ratepayers in 2012 that were previously authorized by the CPUC for normal operations associated with generating electricity. While CDSO welcomes the ALJs' embrace of its position that SCE made unsound decisions at the expense of its own and SDG&E ratepayers, we consider the amount of this refund to be overly conservative, and will argue so in Comments on the Proposed Decision due by December 9, 2013. The 5 Commissioners may vote on a final decision on December 19, 2013.

The Proposed Decision defers decision on $122 Million spent by SCE in 2012 on the defective reactors to Phase 3 in this investigation. Phase 3 will judge the reasonableness and prudency of SCE's actions and expenditures in replacing 4 steam generators in the San Onofre reactors in 2010-2011, which proved to be defective following a leak on January 31, 2012.

The Proposed Decision also defers to Phase 3 whether SCE and SDG&E will be allowed to recover costs associated with power purchases necessary to replace the electricity not generated by San Onofre. This Proposed Decision adopts a methodology for calculating what these “replacement power costs” are, and orders SCE and SDG&E to file new cost estimates using this methodology following the final decision.

In Phase 2 of this investigation currently underway, the CPUC is also considering SCE's and SDG&E's request to recover $3.2 Billion in sunk costs in the shuttered nuclear plant. Briefs are due later this week and in mid-December, after which the ALJs will begin to prepare a proposed decision

To counter the intense lobbying by SCE and SDG&E already underway to reduce even this nominal inital refund for ratepayers, as well as to blunt the criticism of SCE's unsound decision-making in responding to this outage, CDSO will once more mobilize public opinion to defend ratepayer interests. We will reinforce the resounding message given at the CPUC's first public hearing in San Diego on this investigation, October 1st: Stop the San Onofre Bailout!

The Coalition to Decommission San Onofre (CDSO) is a grassroots project of Citizens Oversight, Inc., a 501(c)(3) public benefit corporation which encourages increased engagement by the public in the operation of their local, state and federal government to reduce waste, fraud and abuse by public officials. Our Coalition member organizations also include the Peace Resource Center of San Diego, San Clemente Green, SanOnofreSafety.org and Women Occupy San Diego.

Our CDSO Intervenor Team is led by 20-year CPUC veteran Martha Sullivan and Ray Lutz, the National Coordinator for Citizens Oversight and an engineer who has intervened at the U.S. NRC on San Onofre operating license specifications.

Coalition to Decommission San Onofre/WOSD Fun-Raiser @ The Big Kitchen

Only ONE week left to go until another special WOSD FUN - RAISER happening on Thursday, August 8th. at The Big Kitchen. Proceeds donated to the good works of Women Occupy San Diego AND the Coalition to Decommission San Onofre, of which WOSD is a proud founding member. Money earned from this night of FUN will be split between these two grassroots organizations!

The menu is:
Veggie Lasagna, Green Salad, Garlic Bread, choice of Iced Tea or Lemonade and a slice of Judy The Beauty's YUMMY Chocolate Brownie for Dessert.
VEGAN entree option will also be available.

The price is:
$15.00 min. sliding scale - to infinity and beyond...
(Children under 6 are $5.00)

Volunteers from WOSD and CDSO will be staffing The Big Kitchen, guided by the one and only - Judy The Beauty and the BK's awesome core team working in the kitchen.

Musical Entertainment will be provided by WOSD Occupella Chorus.

Opportunity Drawings for very cool art and collectibles from:
Jim Moreno(http://www.jimpoet.com/id67.html) and Martha Sullivan's Apply Liberally Enterprises (www.ApplyLiberallyEnterprises.com) ...
If you would like to donate an item or service, please contact: This email address is being protected from spambots. You need JavaScript enabled to view it..

Tickets may be purchased from WOSD members OR  ONLINE: http://www.brownpapertickets.com/event/431485

For more info on this Event:
Contact Wendy Sue at This email address is being protected from spambots. You need JavaScript enabled to view it.  or  (619) 563-1086.

For more info on Women Occupy San Diego:
www.womenoccupysandiego.org

For more info on the continuing work of the Coalition to Decommission San Onofre: http://www.copswiki.org/Common/CoalitionToDecommissionSanOnofre

Fundraiser 4 Women Occupy San DIego & Coalition to Decommission San Onofre

It's time for another FUN fundraiser at The Big Kitchen for the good works of Women Occupy San Diego AND the Coalition to Decommission San Onofre, of which WOSD is a proud founding member. Proceeds from the night will be split between these two grassroots organizing champs!

The menu is:
Veggie Lasagna, Green Salad, Garlic Bread, choice of Iced Tea or Lemonade and a slice of Judy The Beauty's YUMMY Chocolate Brownie for Dessert. VEGAN entree option will also be available.

The price is:
$15.00 min. sliding scale - to infinity and beyond.
http://www.brownpapertickets.com/event/431485

WOSD and CDSO vols will be staffing The Big Kitchen, guided by the BK's awesome core team in the kitchen.

Entertainment provided by WOSD Occupella Chorus.

Opportunity Drawing for very cool art and collectibles from Jim Moreno (http://www.jimpoet.com/id67.html) and Martha Sullivan's Apply Liberally Enterprises (www.ApplyLiberallyEnterprises.com) ... If you would like to donate an item or service, please contact This email address is being protected from spambots. You need JavaScript enabled to view it..

You can arrive anytime between 6-7:30p to be served dinner; seating is first come, first served. Weather cooperating, we will be using the outdoor seating as well (tables streetside in front welcome your well-behaved canine companion).

For more info on this Event:
Call Wendy Sue at 619-563-1086.

For more info on Women Occupy San Diego:
www.womenoccupysandiego.org

For more info on the continuing work of the Coalition to Decommission San Onofre: http://www.copswiki.org/Common/CoalitionToDecommissionSanOnofre