The public will get the chance to speak next week on a proposed settlement tied to the shutdown San Onofre Nuclear Generating Station in California, according to NBC4.
As part of the deal, the settlement would leave customers of Southern California Edison (SCE) and San Diego Gas & Electric (SDG&E) – co-owners of SONGS – on the hook for the replacement power and investment costs of $3.3 billion. SCE and SDG&E customers would be given immediate refunds and rate reductions of $600 million, according to a statement from consumer advocacy group Utility Reform Network. SCE customers would receive $480 million and SDG&E customers would receive $121 million. SCE owns 78 percent of the plant and SDG&E owns 20 percent.
“The settlement ensures that customers will not have to pay for San Onofre’s faulty steam generators post-shutdown and also allows shareholders to recoup the majority of their non-steam generator investment in the plant, which provided clean, reliable, low-cost energy to the region for more than 40 years,” said Jeffrey W. Martin, CEO of SDG&E, in March when the settlement was first announced.
SCE said it would cost about $4 billion to decommission SONGS, which has been shut down since 2012 due to faulty steam generators in both units. The utilities announced they would decommission the plant in June 2013. Both utilities said they will pursue cost recovery from Mitsubishi Heavy Industries, the manufacturer of the generators, as well as its insurance companies.
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