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Who Pays What:
Proposed Settlement for Shutdown Costs
Don Mosier | Rimini Road

The San Onofre Nuclear Generator Station (SONGS) closed in June 2012 due to premature failure of the new steam generators. The costs of closing SONGS including loss of energy generation were assigned to both ratepayers and investors, with initial costs to ratepayers estimated at $2.8 billion. After it was revealed that this bill to ratepayers was privately negotiated at a meeting between former California Public Utility Commission (CPUC) Chair Michael Peavey and Southern California Edison (SCE) executives in Prague in 2013, SCE was fined for improper ex parte communication and the original settlement was set aside. On January 30, 2018, a new settlement was agreed upon that reduced the cost to ratepayers to about $1.9 billion and ended ongoing ratepayer charges as of December 2017. The CPUC must still approve this proposed settlement during the next 6 months, but all parties to the settlement have signed off on the agreement.The parties are: The Alliance for Nuclear Responsibility, the California Large Energy Consumers Association, California State University, Citizens Oversight, the Coalition of California Utility Employees, the Direct Access Customer Coalition, Ruth Henricks, The Office of Ratepayer Advocates, San Diego Gas and Electric Company, Southern California Edison Company, The Utility Reform Network, and Women’s Energy Matters. The estimate by SCE is that the average ratepayer will save $68 over the next 4 years if the CPUC approves the settlement. In essence, this settlement means that ratepayers no longer have to pay for electricity that has not been generated since SONGS closed.




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