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Edison Faces Regulatory Battle Over San Onofre Shutdown Cost
[link to www.bloomberg.com]

[snip]






Edison International (EIX) faces a regulatory battle over who will pay for about $3.4 billion of costs related to the decision to retire the San Onofre nuclear plant amid a record number of U.S. nuclear closures.

Southern California Edison, the utility unit that owns and operates what had been California’s largest source of round-the clock electricity, has a $2.1 billion investment in the two reactors and may have to refund some of the $1.3 billion collected from customers since the plant quit producing power in January 2012, Chief Executive Officer Ted Craver told reporters today on a conference call.

Four commercial nuclear-power units, including Edison’s two, have been permanently closed in the U.S. this year, the highest-ever annual total, according to U.S. Nuclear Regulatory Commission data.

Edison estimates that shareholders will absorb after-tax costs of $300 to $450 million, although further writedowns are possible, Chief Financial Officer Jim Scilacci said. The company hasn’t determined how much it will seek from customers, he said.

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The cost to customers may not be settled until late next year, Edison said. The company has already asked for a $16 million a year increase to cover the cost of decommissioning the reactors, Scilacci said on today’s call. The decommissioning fund is about $300 million short of what’s needed, he said.

Edison may recover some investment costs from Mitsubishi Heavy Industries Ltd. (7011), maker of the failed plumbing, and from its nuclear insurer, Craver told reporters. The company has asked Mitsubishi for $139 million and $234 million from the insurer, according to a filing.