Edison International (EIX:US) reached a settlement with consumer groups over costs related to the early retirement of the largest nuclear power plant in Southern California.
Under the agreement, Edison won’t be able to collect $542 million in expenses associated with replacing steam generators at the San Onofre nuclear plant, the Rosemead, California-based utility owner said in a filing with the U.S. Securities and Exchange Commission today. It will be able to charge customers for the costs it incurred buying replacement power after the reactors were shut.
The agreement with the state Office of Ratepayer Advocates, consumer group the Utility Reform Network, and Sempra Energy (SRE:US)’s San Diego Electric & Gas, part owner of the plant, needs approval from the five-member California Public Utilities Commission.
The pact, if approved, would resolve an investigation by the commission into who would pay for the early closing of Edison’s damaged nuclear generators. Edison in June announced it would permanently shut both reactors at the San Onofre plant after unusual wear was found on steam generator tubes. The plant had stopped producing power in 2012.
The company will take a $100 million charge in the first quarter associated with the settlement, which is in addition to the $365 million charge it recorded in the second quarter of last year.
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