Parties to the dispute over ratepayer costs for the premature closure of the San Onofre Nuclear Generating Station in California announced late Tuesday they had reached a new settlement.
The agreement, which would save utility ratepayers at least $775 million, must still be approved by the California Public Utilities Commission (CPUC).
The nuclear power plant in San Diego County closed permanently in 2013 due to issues with faulty steam generators installed for its two remaining operational reactors. A settlement between plant owners Southern California Edison (SCE) and San Diego Gas & Electric (SDG&E) and a host of consumers groups would have left ratepayers on the hook for $3.3 billion of the $4.7 billion in closure costs.
However, CPUC reopened the settlement in 2016 after it was found that then-CPUC President Michael Peevey had conducted ex-parte talks on the settlement with an executive for SONGS majority owner SCE in 2013. That led to mediation among the parties, and talk earlier this month that a deal had been tentatively reached.
Terms of the new settlement include, according to a Southern California Edison press release:
- SCE and SDG&E ratepayers will not have to pay for $775 million in San Onofre-related charges that had not to date been collected under the 2014 settlement.
- Customers will receive refunds for any charges collected by the two utilities above the $775 million while the settlement awaits a decision before CPUC.
- Plaintiffs to a lawsuit against the 2014 settlement will dismiss the case once CPUC signs off on the new deal.
- SDG&E will receive a $151 million reimbursement from SCE for its portion of the $775 million.
