San Onofre Nuclear Generating Station, the twin-reactor power plant that spread its isotopic glow across coastal communities from Los Angeles to San Diego, was declared dead last week. SONGS, as it was affectionately known, was 44, though many of its parts are considerably younger.
Originally conceived as a single Westinghouse pressurized water reactor in 1964, San Onofre was officially commissioned on January 1, 1968. Two additional units were brought online in the early 1980s. The original Unit 1 was closed permanently in 1992, and stands as a radiant monument to nuclear’s 20th Century aspirations.
With its proximity to seismic fault lines and a history of accidents, security breaches and safety complaints, SONGS has long been deemed one of the most difficult siblings in its nuclear family. Units 2 and 3 have been offline since January of this year due to a leak of radioactive steam from a heat transfer tube. Subsequent inspections of the tubes–completely redesigned and replaced when SONGS got an extreme makeover in 2010 and 2011–revealed alarming rates of wear previously unseen at any similar facility. Both reactors have been considered too damaged to simply restart since the initial discovery.
Though multiple scientists, engineers, public interest groups and government agencies diagnosed San Onofre’s troubles as terminal early in the year, Southern California Edison and San Diego Gas & Electric, SONGS’ “guardians” held out hope (or more likely just put on a brave face for the sake of family and friends–also known as “shareholders”) that their beloved ward could be revived. A decision last month to remove the nuclear fuel from Unit 3 made it hard to maintain that façade, and news late last week that the utilities were planning for a 2013 summer without any power produced or transferred by San Onofre made it clear that even SONGS’ oldest friends understood it was time to “pull the plug,” as electrical types are wont to say.
San Onofre is survived by its California cousin, Diablo Canyon, and 100 other frail and faltering nuclear reactors nationwide. At the time of this writing, funeral arrangements have still not been made official.
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And there’s the rub. While it is the present reality and the obvious future, the final shuttering of San Onofre has not been made official. Not by its operators, and not yet even by the California Public Utilities Commission. Acknowledging the nuclear plant’s demise would trigger a review process that would result in rate reductions for Edison and SDG&E customers. Those reviews will kick in automatically in a couple of months because SONGS has failed to generate a single kilowatt of electricity from February on, but the owner-operators of the plant have fought to drag the process out to its longest legal limit, despite the widespread understanding that a restart of even one reactor is at best very far off and likely just never to be.
The head of the Nuclear Regulatory Commission, Allison Macfarlane, has asked for a letter from Edison detailing the “root causes” of the leak and tube degradation. Edison said that letter would be delivered by the end of the first week in October. That letter will not contain any kind of a plan for a restart of Unit 2 (no one is talking about restarting Unit 3), and the NRC will have to review Edison’s report for months before there is any possibility of repair work (realistically, there should be no possibility of repair to Unit 2, since its damage is comparable to the essentially condemned third unit, but this is how these things play out, and, sadly, stranger things have happened).
Meanwhile, Edison has announced it will cut San Onofre’s workforce by one-third (730 jobs), another clear signal that nothing like a restart will be happening any time in the predictable future.
With this reality universally understood and effectively acknowledged by all parties, the NRC should stop wasting resources on any plan for a restart, and start asking the tough questions about decommissioning SONGS. And it borders on corrupt that SCE and SDG&E are still charging ratepayers $54 million a month for service not rendered, with no promise that it ever will be. The California PUC should remove San Onofre from the utilities’ rate base now.
Shockingly, some on the CPUC are looking to make this scandalous situation worse. Over the life of San Onofre, utilities customers have paid into a decommissioning fund–and though the balance in that account now approaches $3 billion, it is still considered underfunded by at least 25 percent. And now, one commissioner, Tim Simon, a former securities industry attorney, is publicly advocating lifting limits on how that money could be invested, arguing that riskier bets would yield higher returns. This suggestion was voiced last week, after the decision was made to remove the fuel from Unit 3, after the NRC made it clear that a restart of Unit 2 was far from guaranteed, and, of course, over eight months after SONGS stopped generating power altogether. It also comes after the NRC announced a delay in any final decisions on relicensing until the government developed a new radioactive waste disposal scheme, a process expected to take at least two years.
Consumer advocate Matt Freedman of The Utility Reform Network (TURN) sees this idea for what it is–socialized risk, privatized return:
“It’s a maxim of retirement planning that as you get closer to your own personal retirement, your investments get more conservative,” Freedman said, “not more risky. But in this case, Commissioner Simon is suggesting that as these units near their retirement, that we should begin to invest more of the money in very risky investments.”
Freedman said the proposal on the table appears designed to benefit investment managers who would charge higher fees for new categories of investments. He said without a lot of time to ride out market fluctuations, ratepayers could be left on the hook for any depletion of the fund caused by market drops.
Naturally, San Diego Gas & Electric finds Simon’s idea appealing, but in the same breath, the company notes such a move means higher fees–fees that could be passed on to ratepayers with CPUC approval. It appears to be another sign that the utilities are looking to cash in before San Onofre officially is forced to check out.
But in times of trouble, responsibility ultimately rests with the family (aka the shareholders) to confront the hard truths. Owners of Edison and SDG&E stock should demand that the boards of these companies stop wasting shareholders’ money and everyone’s time and get on with divesting from their dirty, dangerous, and expensive involvement with nuclear power.
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