San Onofre Nuclear Plant settlement finalized
The settlement of issues and costs related to the closure of the San Onofre nuclear plant was finalized last week, concluding the California Public Utilities Commission (PUC) San Onofre proceeding.
Parties finalized the settlement by accepting a PUC request to remove a provision that would have funded university-conducted greenhouse gas research.
Southern California Edison (SCE), majority owner of San Onofre, will now be able to give customers rate reductions once the commission reviews SCE’s upcoming filing regarding the rate calculations.
“Today’s decision means we can begin delivering the benefits to customers that settling parties proposed seven months ago,” SCE President Ron Nichols said. “We’re pleased to bring closure to this issue following the diligent efforts over many months by the parties.”
The rate reductions include a one-time bill credit of approximately $11 per average residential customer and a two percent monthly average bill reduction for the average residential customers. Rate reductions for non-residential customers will vary. The changes are expected to be reflected on customer bills starting in September.
Under the settlement, the customers of SCE and San Diego Gas & Electric, a co-owner of San Onofre, no longer have to pay for the $775 million in San Onofre related investments that the utilities have not recovered. The reductions approved last week are in addition to the approximately $2 billion in customer savings under the settlement approved in 2014.
SCE retired San Onofre in June 2013 after a contractor provided faulty steam generators.
