San Onofre Nuclear Generating Station (SONGS)
Decommissioning Cost Estimates


Background

On January 9, 2012, Edison shut down SONGS Unit 2 for scheduled maintenance, followed by the shutdown of SONGS Unit 3 due to a steam generator tube leak on January 31, 2012. Neither SONGS unit ever returned to service. 

On December 11, 2014 Edison and SDG&E submitted an Application to the CPUC requesting approval of their decommissioning cost estimates for SONGS Units 2 & 3: 

  • Edison:  $4.4 billion (100% share) 
  • SDG&E:  $899 million (20% share plus $16.7 million exclusive to SDG&E)  

In April 2015, the CPUC issued a Ruling, setting the proceeding scope and schedule to determine what standard of review should be met, the reasonableness of costs, and the appropriate ratemaking process for future cost reviews.  

Evidentiary Hearings are set for August 25 - 27, 2015 at the CPUC. 

 

ORA Position

ORA made an in-depth review of Edison’s and SDG&E’s Application and recommends: 

  • The CPUC should require that summaries of cash flows and changes to the proposed decommissioning timeline be included as part of the utilities’ annual compliance filing for approval of interim disbursements.   
  • The CPUC should continue its current process for the review of completed decommissioning projects, and reject Edison’s proposals to shift the burden of proof to the interveners.  
  • The CPUC should not make a finding that the Decommissioning Cost Estimate is reasonable, as it is only the most recent estimate. 
  • Edison should establish a Memorandum Account to record costs not eligible for recovery from the Nuclear Decommissioning Trusts, so that they can be reviewed for reasonableness as part of the utility’s Triennial Decommissioning proceeding.  
  • SDG&E should seek any costs from ratepayers in its Triennial Decommissioning proceeding in order to determine reasonableness of those costs. 

See ORA’s January 16, 2015 Protest to the Application.  

See ORA’s July 15, 2015 Testimony issuing its Report on the utilities’ request.
 

Proceeding Docket

See the Proceeding docket for a full record of SONGS Decommissioning Cost Estimates.  

At this docket you can also subscribe to receive regular proceeding updates.