nuclear-news

Financial settlement on the costs of closing San Onofre nuclear power plant

$US1.4b settlement after nuclear closurehttps://au.finance.yahoo.com/news/us1-4b-settlement-nuclear-closure-005216557.html 21 Nov 14 Consumers will get refunds and credits of about $US1.4 billion, but also pay about $US3.3 billion, under a settlement involving the premature closure of the San Onofre nuclear power plant.

The vote by the California Public Utilities Commission was 5-0.

At issue has been who should take the financial hit for the plant’s demise – company shareholders or customers.

The settlement stems from negotiations among operator Southern California Edison, minority owner San Diego Gas & Electric Co. and consumer advocates. Critics argued that the deal short-changed ratepayers.

The payments will be made over the next decade.

The settlement “is reasonable in light of the whole record, consistent with law and in the public interest,” Commissioner Mike Florio said in a statement on Thursday.

San Onofre shut down for good last year after a long fight over whether it was safe to restart. It had been idle since January 2012, after a small radiation leak led to the discovery of unusual damage to hundreds of tubes inside virtually new steam generators.

A federal investigation after the 2012 leak concluded that a botched computer analysis resulted in generator design flaws that were largely to blame for the unprecedented wear in the tubing that carried radioactive water.

November 22, 2014 - Posted by Christina Macpherson | business and costs, USA