The California Public Utilities Commission (CPUC) is scheduled on May 25 to decide whether to approve the latest, disputed cost estimate for decommissioning the Diablo Canyon Power Plant.
Pacific Gas & Electric Co., owner of the two-reactor site in San Luis Obispo County, in 2015 estimated it would cost $3.78 billion to decommission the plant following its planned closure in 2025. That is nearly $1.5 billion above the company’s 2012 projection of $2.3 billion that was approved by the state commission.
In April, Administrative Law Judge Darcie Houck issued a proposed decision that would reduce PG&E’s cost estimate by $1.4 billion, to $2.42 billion. She indicated the PG&E projection – prepared by decommissioning services provider TLG Services – does not provide precise data for security, staffing, and other areas to support the estimated cost increase.
The five-person commission must approve the expense projection for it to take legal effect.
PG&E would use the approved amount in setting utility ratepayer fees to fund decommissioning. Managers from the utility were scheduled to meet this week with aides to the CPUC members to make their case for their estimate.
PG&E is seeking CPUC approval to collect $117 million in “annual revenue requirements” for the Diablo Canyon decommissioning trust fund. That would be slightly over 0.5 percent extra per month for the average customer, the company says.
“The forecast we put forward takes into account key environmental and safety requirements, and is well supported by industry benchmarking, best practices and experience,” PG&E spokesperson Blair Jones said by email. “We continue to believe that our forecast is the best estimate of the cost to decommission the facility and believe the CPUC should approve it in support of the state’s requirements to fully fund decommissioning expenses.”
The commission is also scheduled on May 25 to grant PG&E’s uncontested $1.1 billion cost estimate for decommissioning the Humboldt Bay Power Plant near Eureka, which has been closed since 1976.
Any of the commissioners could remove the items from the schedule for next week’s meeting if they feel more information is needed, a CPUC spokeswoman said.
