Ratepayers file $3B suit over San Onofre nuclear power plant

Ratepayers have filed a $3 billion suit alleging millions in monthly electric bills have been illegally collected since the San Onofre nuclear plant was shuttered last year | Copyright 2014, The Associated Press

SAN DIEGO (AP) — Ratepayers have sued Southern California Edison Co. (NYSE:EIX) and state electric power regulators for $3 billion in federal court over allegations the defendants have illegally collected millions in monthly electric bills from more than 17 million customers since a nuclear power plant was shuttered last year.

The lawsuit, filed Thursday in U.S. District Court in San Diego, asks for restitution for the customers whose money is being taken without "just compensation," the Los Angeles Times reported (http://lat.ms/1H1IPn7) on Saturday.

The claim argues that since January 2012, when steam generators at the plant first broke down, the defendants have forced ratepayers to absorb the $700 million cost of the failed steam generator project and pay more than $3 billion for the idled plant.

Attorneys for plaintiffs Citizens Oversight Inc. and eight individual ratepayers argue that the defendants can't charge the ratepayers because the process they used for obtaining and installing the generators was flawed and unsafe.

Representatives from both the California Public Utilities Commission and Edison declined to comment to the Times and said they had not seen the lawsuit.

The legal action is the latest protest by activist ratepayers over a proposed agreement that would divvy up the cost of the plant's failure between ratepayers and Edison stockholders.

The proposal, which could go before the five-member state commission as early as this week, would seek $3.3 billion over 10 years from utility customers and $1.4 billion from stockholders.

The massive, 2,200-megawatt plant in San Onofre generated enough power to run nearly 3 million Southern California homes.

Did You Like this Article? Get All the Energy Industry News Delivered to Your Inbox

Subscribe to an email newsletter today at no cost and receive the latest news and information.

 Subscribe Now


Maximizing Operational Excellence

In a recent survey conducted by PennEnergy Research, 70% of surveyed energy industry professional...

Leveraging the Power of Information in the Energy Industry

Information Governance is about more than compliance. It’s about using your information to drive ...

Reduce Engineering Project Complexity

Engineering document management presents unique and complex challenges. A solution based in Enter...

Revolutionizing Asset Management in the Electric Power Industry

With the arrival of the Industrial Internet of Things, data is growing and becoming more accessib...

Latest PennEnergy Jobs

PennEnergy Oil & Gas Jobs