PUC deals PG&E a blow
Utility blocked from recovering $1.36 billion in added costs for retiring nuclear power plant
SAN FRANCISCO — PG&E customers won a respite Thursday from more energy-bill increases when state regulators blocked the utility’s request to recover $1.36 billion in added costs for retiring its Diablo Canyon nuclear power plant.
San Francisco-based PG&E had been seeking approval for $3.78 billion in higher utility bills, stretched out over roughly a decade, to finance the retirement of the Diablo Canyon power plant on the Central California coast near San Luis Obispo.
The state Public Utilities Commission decided Thursday, however, that PG&E will be allowed to recoup only $2.42 billion in decommissioning costs — sparing customers the additional $1.36 billion in higher bills.
The regulators’ decision benefiting PG&E customers follows several months of steadily rising gas and elec-
“The PUC’s vote to stop PG&E from milking Diablo formore of customers’ money is long overdue.” — Mark Toney, TURN
tricity bills. Many customers complained about huge increases in their PG&E gas bills during a chilly winter.
At the beginning of August 2016, average monthly utility bills totaled $145.36 a month for the typical PG&E customer who used both forms of energy. By early March, the average monthly bill had soared to $165.10 — an increase of 13.6 percent in just seven months.
Consumer advocates Thursday welcomed the regulators’ decision on Diablo Canyon retirement costs.
“This is a great victory for TURN, and for beleaguered consumers,” said Mark Toney, executive director of The Utility Reform Network, or TURN, a consumer group.
But PG&E officials disagreed with the state PUC’s decision.
“We believe that our forecast is the best estimate of the cost to decommission the facility, and that the PUC should have approved it in support of the state’s requirements to fully fund decommissioning expenses,” said Blair Jones, a PG&E spokesman.
The utility intends to revisit the matter in 2018.
“We will continue to seek the funding necessary to perform this important project in the next triennial proceeding,” Jones said.
PG&E came under fire from TURN for trying to lobby several PUC members’ advisers in recent days, ahead of the Thursday decision. The utility responded that the communications were legal because proper notice had been given that they would occur.
The utility defended its request for the higher payout by its customers, saying the retirement of Diablo Canyon needs to be done properly.
“PG&E is fully committed to decommissioning Diablo Canyon Power Plant in a safe and responsible manner,” Jones said. “The cost forecast we put forward takes into account key environmental and safety requirements, and is well supported by industry benchmarking, best practices and experience.”
TURN, however, accused PG&E of using the Diablo Canyon plant to line its coffers at the expense of customers.
“PG&E is accustomed to using Diablo as its cash cow,” Toney said. “With the plant closing, the PUC’s vote to stop PG&E from milking Diablo for more of customers’ money is long overdue.”