PRESS RELEASE- San Onofre Nuclear Generating Station (SONGS) to close permanently #goodnews


SOUTHERN CALIFORNIA EDISON PLANT - NARA - 542593

SOUTHERN CALIFORNIA EDISON PLANT – NARA – 542593 (Photo credit: Wikipedia)

 

FOR IMMEDIATE RELEASE
Media Contact: Media Relations (626) 302-2255
Investor Relations Contact: Scott Cunningham (626) 302-2540
Southern California Edison Announces Plans to
Retire San Onofre Nuclear Generating Station
Company Will Continue its Work with State Agencies on Electric Grid Reliability
ROSEMEAD, Calif. (June 7, 2013) — Southern California Edison (SCE) has decided to permanently
retire Units 2 and 3 of its San Onofre Nuclear Generating Station (SONGS).
“SONGS has served this region for over 40 years,” said Ted Craver, Chairman and CEO of Edison
International, parent company of SCE, “but we have concluded that the continuing uncertainty about
when or if SONGS might return to service was not good for our customers, our investors, or the need to
plan for our region’s long-term electricity needs.”
Both SONGS units have been shut down safely since January 2012. Unit 2 was taken out of service
January 9, 2012, for a planned routine outage. Unit 3 was safely taken offline January 31, 2012, after
station operators detected a small leak in a tube inside a steam generator manufactured by Mitsubishi
Heavy Industries (MHI). Two steam generators manufactured by MHI were installed in Unit 2 in 2009 and
two more were installed in Unit 3 in 2010, one of which developed the leak.
In connection with the decision, SCE estimates that it will record a charge in the second quarter of
between $450 million and $650 million before taxes ($300 million – $425 million after tax), in accordance
with accounting requirements.
After months of analysis and tests, SCE submitted a restart plan to the Nuclear Regulatory Commission
(NRC) in October 2012. SCE proposed to safely restart Unit 2 at a reduced power level (70%) for an
initial period of approximately five months. That plan was based on work done by engineering groups
from three independent firms with expertise in steam generator design and manufacturing.
The NRC has been reviewing SCE’s plans for restart of Unit 2 for the last eight months, during which
several public meetings have been held. A recent ruling by an adjudicatory arm of the NRC, the Atomic
Safety and Licensing Board, creates further uncertainty regarding when a final decision might be made on
restarting Unit 2. Additional administrative processes and appeals could result in delay of more than a
year. During this period, the costs of maintaining SONGS in a state of readiness to restart and the costs
to replace the power SONGS previously provided would continue. Moreover, it is uneconomic for SCE
and its customers to bear the long-term repair costs for returning SONGS to full power operation without
restart of Unit 2. SCE has concluded that efforts are better focused on planning for the replacement
generation and transmission resources which will be required for grid reliability.
“Looking ahead,” said Ron Litzinger, SCE’s President, “we think that our decision to retire the units will
eliminate uncertainty and facilitate orderly planning for California’s energy future.”
Litzinger noted that the company has worked with the California Independent System Operator, the
California Energy Commission and the California Public Utilities Commission in planning for Southern
California’s energy needs and will continue to do so. 2 of 2
“The company is already well into a summer reliability program and has completed numerous
transmission upgrades in addition to those completed last year,” Litzinger said. “Thanks to consumer
conservation, energy efficiency programs and a moderate summer, the region was able to get through
last summer without electricity shortages. We hope for the same positive result again this year,” Litzinger
added, “although generation outages, soaring temperatures or wildfires impacting transmission lines
would test the system.”
In connection with the retirement of Units 2 and 3, San Onofre anticipates reducing staff over the next
year from approximately 1,500 to approximately 400 employees, subject to applicable regulatory
approvals. The majority of such reductions are expected to occur in 2013.
“This situation is very unfortunate,” said Pete Dietrich, SCE’s Chief Nuclear Officer, noting that “this is an
extraordinary team of men and women. We will treat them fairly.” SCE will work to ensure a fair process
for this transition, and will work with the Utility Workers Union of America (UWUA) and the International
Brotherhood of Electric Workers (IBEW) on transition plans for the employees they represent.
SCE also recognizes its continuing safety responsibilities as it moves toward decommissioning of the
units. SCE’s top priority will be to ensure a safe, orderly, and compliant retirement of these units. Full
retirement of the units prior to decommissioning will take some years in accordance with customary
practices. Actual decommissioning will take many years until completion. Such activities will remain
subject to the continued oversight of the NRC.
SCE intends to pursue recovery of damages from Mitsubishi Heavy Industries, the supplier of the
replacement steam generators, as well as recovery of amounts under applicable insurance policies.
For updates, please visit http://www.SONGScommunity.com, or follow us on Twitter at
http://www.twitter.com/SCE_SONGS and on http://www.facebook.com/SCE.
San Onofre is jointly owned by SCE (78.21 percent), San Diego Gas & Electric (20 percent) and the city
of Riverside (1.79 percent).
About Southern California Edison
An Edison International (NYSE:EIX) company, Southern California Edison is one of the nation’s largest
electric utilities, serving a population of nearly 14 million via 4.9 million customer accounts in a 50,000-
square-mile service area within Central, Coastal and Southern California.

 

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