Ratepayers Should Help Pay for Closure of Nuclear Plant, Says Utility
Southern California Edison published full-page letters/advertisements in the Los Angeles Times and the Orange County Register this week to argue that ratepayers should help pay for the shutdown of the San Onofre nuclear power plant.
The utility decided to permanently retire the San Onofre Nuclear Generating Station earlier this summer. The facility had already been closed for more than a year because of a small radioactive leak.
“If a utility asset must be retired before the end of its expected life, the utility recovers from customers its reasonable investment costs,” wrote Southern California Edison in the LA Times. The utility supplies electricity for 4.9 million customers.
Estimates vary for decommissioning the plant, but Edison says it will cost about $4.1 billion. The utility is trying to recover some costs from its insurers as well as from Mitsubishi Heavy Industries of Japan, whose equipment caused the radioactive leak. In the meantime, the company is making its case that ratepayers should chip in.
Edison has a decommissioning trust fund of about $2.7 billion in ratepayer money, and two minority partners, San Diego Gas & Electric and the city of Riverside electric utility, have another $927 million, according to the LA Times.
The California Public Utilities Commission will have the final say as to how the costs are allocated.
Photo credit: Timothy Tolle’s Flickr Photostream
- Guide to Energy, Carbon and Environmental Software
- Expert Q and A: Tips for Automating your Energy Data
- Alarms Management: The Future is Now
- What You Need to Know About Demand Charges
- 2014 Energy and Sustainability Predictions: Findings from Leading Professionals
- Evaluation Guide: Four Steps to a Successful Lighting Evaluation
- How "Fixed" is the Fixed Price Product?
- The Value of Integrating Health, Safety and Environment Processes with Enterprise Asset Management
- Complex Manufacturing Assets Require Integrated Management
- The Business Case for Corporate Sustainability Tools
- BUYING STRATEGIES IN A VOLATILE MARKET: What Businesses Need to Know about Retail Electricity Procurement
- Smart Building Technology: The Key to Comprehensive Building Performance
- What Energy Managers Need to know about Procuring Natural Gas: Guidance for 2014 Natural Gas Contracts
- Energy Optimization from the Boiler Room to the Board Room
- Your Roadmap for Energy Management: First Stop – Myths & Realities of Energy Purchasing