An amended settlement agreement intended to resolve an investigation into the shutdown and retirement of the San Onofre Nuclear Generating Facility and how revenues for the damaged replacement steam generators in units 2 and 3 are to be allocated to ratepayers was signed by the parties Wednesday.
The amendments were in response to modifications and clarifications the California Public Utilities Commission ordered September 5.
San Diego Gas & Electric, Southern California Edison, the CPUC's Office of Ratepayer Advocates, the Utility Reform Network, Friends of the Earth and the Coalition of California Utility Employees had agreed to the changes in a joint filing September 19.
The parties signed the original settlement agreement March 27 that would refund $890 million to the utilities' customers. It had been under review at the CPUC since then.
The CPUC said in its September 5 order the settlement disfavors consumers and certain changes must be made before it can give the settlement further consideration.
These changes included equal sharing between consumers and the utilities of litigation recoveries from Mitsubishi, the manufacturer of the steam generators.
The original settlement specified a formula that returned awards above $900 million to ratepayers. The CPUC disputed the contention that awards would reach that level.
Furthermore, ratepayers should receive 95% of insurance recoveries from Nuclear Electric Insurance Limited, rather than 82.5% as stated in the settlement, the commission said.
The arbitration proceedings with Mitsubishi are in an early stage so refund amounts are not yet known.
SoCal Ed claims it has suffered more than $4 billion in damages to its customers and shareholders. Insurance recoveries are unknown at this time.
SoCal Ed and SDG&E also agreed that if they refinance regulatory assets solely with debt any savings from the refinancing should be shared equally between shareholders and ratepayers.
Finally, the amended settlement includes a provision for a multiyear research, development and demonstration program to be undertaken by the University of California and funded by shareholder dollars to spur practical development of technologies that will reduce greenhouse gas emissions at existing and future California gas-fired power plants that are replacing the lost SONGS generation.
This request was inspired by criticism leveled by the Alliance for Nuclear Responsibility.
It said one of the largest negative consequences arising from the SONGS shutdown was increased electricity prices and carbon dioxide emissions.
SCE retired San Onofre units 2 and 3 in June 2013 following a lengthy investigation into a minor radiation leak and excessive wear found in heat transfer tubes causing the utility to shut the units in January 2012.
The CPUC opened its investigation into the SONGS shutdown and its impact on customer rates in October 2012.
The amended settlement, if approved by the CPUC, would resolve and replace that investigation.
