Billing for San Onofre Repair Suspended : PUC’s Order to Two Utilities Sidesteps Major Policy Question

Southern California Edison Co. and San Diego Gas & Electric Co. were ordered Wednesday to suspend collection of $70.8 million from their customers for the cost of 4-year-old repairs at their San Onofre nuclear power plant in northern San Diego County.

In issuing the order, which will trim the typical monthly residential electric bill by only about 11 cents, the state Public Utilities Commission sidestepped the major policy question before it: Whether Edison, principal partner in building and operating the San Onofre plant, undercut its own efforts to recover the repair costs from Westinghouse Electric Co.

Westinghouse had supplied three steam generators for San Onofre Unit 1, which was forced to close in 1981 while repairs were made to the boilers.

Edison, which owns 80% of the generating plant, and Westinghouse are locked in litigation over that issue, and meanwhile electric customers have been paying into a special account until the PUC fixes responsibility.

Weakens Its Case

The PUC staff has strongly recommended that Edison, not its customers, should bear most of the repair costs--$56 million. The utility weakened its case for recovery from Westinghouse, the staff maintains, because of statements made by some of its officials. An Edison engineer, for example, told the commission that Westinghouse’s design was “up to date” and the best available, and Edison President Howard Allen said “no responsible manufacturing company” could be expected to honor a warranty for replacement energy costs during a shutdown.

Rather than act on the staff’s recommendation, however, the PUC, by a 4-1 vote, decided to delay its decision for at least a year while the Edison-Westinghouse lawsuit proceeds. Several commissioners acknowledged that the legal case could last for several years.

The dissenting commissioner, Priscilla Grew, said she sees no reason why the PUC’s decision on who ought to pay the costs should hinge on the outcome of the litigation.