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Costs of dead San Onofre nuclear reactor – who pays?

Nuclear settlement costs investors $96M  By Morgan Lee .APRIL 29, 2014 A San Onofre settlement proposal held back first-quarter earnings at Southern California Edison by $96 million, the Rosemead-based utility said Tuesday in federal financial filings.

The agreement, negotiated between the nuclear plant’s owners and two consumer groups, would hold customers responsible for about $3.3 billion in facility-related expenses and the cost of securing replacement power. The California Public Utilities Commission is considering the proposal amid objections from consumer groups that say the agreement favors investors over utility customers.

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Including previous charges last year, Edison estimated the settlement would have a $461 million after-tax impact on its bottom line. Before-tax charges totaled $806 million.

Edison’s first-quarter earnings declined by 35 percent — to $176 million — compared with the same period last year.

Edison is the main owner and the operator of San Onofre. San Diego Gas & Electric owns a 20 percent stake in the plant; it took a $187 million impairment charge last year and said recently that it expects no further write-downs.

Crippled by the rapid degradation of newly installed steam generators, San Onofre stopped producing power on Jan. 31, 2012. Edison chose to retire San Onofre for good in June of last year, leaving state regulators to decide who should pay for an assortment of leftover costs — utility customers or corporate stockholders……..http://www.utsandiego.com/news/2014/apr/29/nuke-settlement-impact-reported/

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April 30, 2014 - Posted by | business and costs, USA

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