Customers have come out the winners in two deals announced this week by owners of nuclear power plants.In California, a settlement was announced Tuesday that customers of Southern California Edison and San Diego Gas & Electric, as majority and minority owners of the San Onofre nuclear plant, had reached a $775 million compromise with attorneys representing customers on costs associated with closing down the plant.
Regulators in California agreed to a shut down plan that would phase out nuclear power in the state of California. With the settlement, which has to be approved by regulators, customers will save $68 over the course of four years in their utility bills that would cover the closing of the plant compared to the initial proposal submitted by the utilities.
In the previous agreement, which was approved by regulators in 2014, customers were to have paid $3.3 billion of the $4.7 billion in expected closure costs.
San Onofre ceased operations in 2012 after small leaks were discovered in tubes of recently replaced generators. With some possibility of a restart, the company later negotiated with environmental groups that led to the permanent closure of the facility.
The settlement announced Tuesday revises an agreement approved in 2014 by state regulators on the closure of San Onofre that said customers would pay $3.3 billion of the $4.7 billion in estimated costs from the closure, the Associated Press reported.
Southern California Edison owns 78.2 percent of San Onofre, while San Diego Gas & Electric owns 20 percent and the City of Riverside Utilities Department 1.8 percent.
Also announced this week, Georgia Power said Wednesday that it had filed an update for the Nuclear Construction Cost Recovery tariff with the Georgia Public Service Commission (PSC) indicating that customers will pay $139 million less for the Plant Vogtle expansion project in 2018.
A typical customer, one who uses 1,000 kilowatt-hours per month, will see a savings of $2.70 on their monthly bills due to lower financing costs.
The savings are attributed to recent changes in federal tax law “as well as the positive impact of the receipt of the full amount of parent guarantee payments from Toshiba,” Georgia Power announced.
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