Southern California Edison Review of Documents Affirms Independent San Onofre Settlement Process
30 April 2015 - 8:18AM
Business Wire
Documents Southern California Edison (SCE) submitted today to
the California Public Utilities Commission (CPUC) show the
negotiations that led to the settlement of the San Onofre nuclear
plant investigation were independent and not influenced by any CPUC
decision-maker.
SCE was ordered by the CPUC to provide additional information
regarding oral and written communications related to the settlement
agreement on the closure of the San Onofre nuclear plant. To
respond, SCE started by identifying slightly more than 2 million
emails and documents, and then winnowing that group down to isolate
documents related to the San Onofre investigation and the
settlement process.
SCE’s submittal includes a few dozen documents that reflect
communication between SCE and CPUC decision-makers from March 2013
through November 2014, and a chronology of the key events relating
to the San Onofre settlement. The documents show there were no
improper communications between Edison executives and CPUC
decision-makers. The documents also show that SCE did not negotiate
the San Onofre settlement with then-CPUC President Michael Peevey
or any other CPUC decision-maker. In fact, the documents show
several SCE executives rebuffed repeated demands by Peevey to
discuss a potential settlement provision for University of
California research after the initial settlement was reached.
“Our actions throughout the San Onofre settlement discussions
were consistent with both the law and our ethical standards,” said
SCE President Pedro Pizarro. “We did not negotiate this settlement
with any CPUC decision-maker. The settlement is fair and
reasonable, was properly and appropriately negotiated with consumer
groups and delivers substantial benefits to our customers.”
SCE’s response shows the final settlement was substantially
different from ideas communicated by Peevey, based on notes of a
conversation Peevey had with then-SCE executive Stephen Pickett in
March 2013. At that meeting, Peevey commented in broad terms about
how some of the cost issues arising from a shutdown of San Onofre
should be resolved.
A declaration from Ron Litzinger, SCE’s president at the time,
shows that Pickett was not authorized to negotiate a settlement on
the San Onofre investigation with Peevey. Pickett also has
submitted a declaration stating that he did not reach or attempt to
reach any agreement with Peevey about the San Onofre
investigation.
One “takeaway” from this effort, SCE believes, is that the rules
that govern the communication process are ambiguous. SCE welcomes
the commission’s call for a transparent process to govern the
necessary exchange of information between the CPUC and those it
regulates.
The San Onofre settlement was unanimously approved by the CPUC
in November 2014. Parties to the settlement include The Utility
Reform Network (TURN), the Office of Ratepayer Advocates of the
CPUC, Friends of the Earth, the Coalition of California Utility
Employees and San Diego Gas & Electric, a co-owner of the
nuclear plant. TURN and ORA have said that consumers would have
borne higher shutdown costs if litigation had been pursued rather
than the settlement.
SCE announced in June 2013 that it would retire San Onofre Units
2 and 3, and begin preparations to decommission the facility. SCE
has established core principles of safety, stewardship and
engagement to guide decommissioning. For more information about
SCE, visit www.songscommunity.com.
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.
Southern California EdisonMedia Contact:Maureen Brown,
626-302-2255orInvestor Relations Contact:Scott Cunningham,
626-302-2540
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