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Complaint Alleges Edison Inflated Costs Of Steam Generators

A complaint filed with the California Public Utilities Commission accuses the operator of the San Onofre nuclear power plant of inflating the cost to ratepayers of the defective steam generators.

The San Onofre Nuclear Generating Station.
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Above: The San Onofre Nuclear Generating Station.

Aired 2/15/13 on KPBS News.

A complaint filed with the California Public Utilities Commission accuses the operator of the San Onofre nuclear power plant of inflating the cost to ratepayers of the defective steam generators.

The complaint, filed by the Alliance for Nuclear Responsibility, alleges Southern California Edison used excessive inflation estimates when filing with the Securities and Exchange Commission on the costs of the new steam generators installed in San Onofre.

The new equipment, installed in 2010 and 2011, cost more than $700 million, but failed less than two years into operation. A small radiation leak in the generator tubes shut the plant down a year ago. Still, ratepayers have been paying the costs in their utility bills.

John Geeseman of the Alliance for Nuclear Responsibility said CPUC staff have rejected his complaint, on the grounds that it is outside their jurisdiction. But he said he will pursue the complaint with the full commission if necessary. He wants the CPUC to ask State Attorney General Kamala Harris to take court action on the issue.

Harris has signed on to be a party of the CPUC’s investigation into whether Edison can charge ratepayers for the steam generators even though the plant has not produced any power for more than a year.

The Los Angeles Times says the complaint filed Wednesday with the state Public Utilities Commission claims Securities and Exchange Commission filings show costs may have been hiked up to $100 million.

Edison has not responded to KPBS' requests for reaction to the complaint.

In a separate action, San Diego attorney Mike Aguirre is arguing on behalf of his client, Ruth Henricks, that the CPUC should remove all costs associated with the steam generators from the rates.

Comments

Avatar for user 'RegularChristian'

RegularChristian | February 14, 2013 at 8:17 p.m. ― 1 year, 10 months ago

How about letting the public operate their public utilities for a change?

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Avatar for user 'CaptD'

CaptD | February 17, 2013 at 12:19 p.m. ― 1 year, 10 months ago

As far as restarting SanO goes, most people do not understand that not ONE but BOTH almost new replacement Steam Generators have MAJOR DESIGN FLAWS that make restarting them at any power UNSAFE. It should also be noted that the ratepayers in SoCal are still paying $54 Million a month to Edison that hopefully will be refunded for their debacle, as soon as the CPUC wakes up to the new reality that it is no longer acceptable to support what is best for the Utility and its shareholders (who have had record profits) instead of what is best for all the CA ratepayers, especially now that SanO has not been operation for over a year with no FIX in sight!

If readers want more information on those MAJOR DESIGN FLAWS, please read one or more of the following technical articles:

San Onofre Legacy (SOL Part 1, 2 and 3).

http://decommission.sanonofre.com/2013/02/san-onofre-legacy-sol-part-1-2-and-3.html

The bottom line is that the USA cannot afford a Trillion Dollar Eco-Disaster...

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Avatar for user 'CaptD'

CaptD | February 17, 2013 at 12:23 p.m. ― 1 year, 10 months ago

Great info on the last NRC meeting:
LOOKING BACK ON NRC MEETING LAST TUESDAY and LOOKING FORWARD TO CPUC MEETING THURSDAY
(be sure to see details on this upcoming meeting, on the link below)
https://snt142.mail.live.com/mail/InboxLight.aspx?n=442818948&fid=1&fav=1&mid=28439c16-76f2-11e2-a65f-00237de41a96&fv=1#n=2056654331&fid=1&fav=1&mid=d2100d6a-7930-11e2-958b-002264c17c5c&fv=1

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Avatar for user 'CaptD'

CaptD | February 17, 2013 at 12:30 p.m. ― 1 year, 10 months ago

NOTE: Edison stock value has been downgraded:

San Onofre: Mitsubishi told to hand over nuclear plant report
http://latimesblogs.latimes.com/lanow/2013/02/nrc-san-onofre-mitsubishi-report.html
snip
Also Thursday, investment banking firm Jefferies & Co. downgraded Edison stock from "hold" to "underperform" based on fears that the NRC might "significantly delay" restart of the plant and could find Edison at fault in its investigation.

"We believe there is a growing likelihood that the NRC will require an amendment to the operating license ... before permitting the plant to restart. This would delay the restart for 6-12 months depending on whether the NRC decides to hold public hearings," the Jefferies report said.

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