PG&E; Seeks More Diablo Pollution System Funds

Pacific Gas & Electric Co. officials said Wednesday that they will seek more than a previously requested $105 million in tax-exempt state bonds for pollution control systems at the Diablo Canyon nuclear power plant, including expansion of storage facilities for high-level radioactive waste.

The California Pollution Financing Authority, which had been considering PG&E;’s initial request for the issuance of $105 million in revenue bonds, agreed to postpone action for at least a month so that the utility could calculate how much more money it will seek.

However, neighbors of the controversial nuclear plant called on the financing authority to refuse to issue any bonds that would finance construction of a “permanent” nuclear waste dump at Diablo Canyon.

“The Central Coast of California would never be considered by anyone as a site for a high-level waste dump, and yet we are being rushed headlong into just that situation,” protested June von Ruden, a Pismo Beach resident and a representative of Mothers for Peace, which fought construction of the plant.

Von Ruden, testifying at a financing authority hearing, said the bond funds would enable PG&E; to quadruple the size of its nuclear waste dump located 2 1/2 miles from an active earthquake fault.

Lea Anderson of San Luis Obispo protested that PG&E; is “asking the state of California to subsidize the storage of waste materials that will remain lethal for thousands of years.”

PG&E; executives did not attempt to rebut the testimony of either woman at at the hearing. However, PG&E; manager John F. Jenkins-Stark said later that the company has no alternative to storing nuclear waste at Diablo Canyon, because the federal government has not established an appropriate dump site.

“We plan to increase the capacity of the spent fuel pool, just as over 100 other nuclear units (power plants) in the country have,” Jenkins-Stark said.

“We feel that the best, safest, most cost-effective way to provide that storage is on site.”

The California Pollution Control Financing Authority is empowered to approve the issuance of tax-exempt bonds to help businesses finance the construction of pollution control facilities.

Little Noticed

Earlier this year in a little-noticed action, the authority approved a request from PG&E; for the issuance of $65 million in bonds.

Of that sum, $8 million will be spent on expanding Diablo Canyon’s storage capacity for radioactive waste. The remainder will go for such projects as air and water pollution control systems.

Subsequently, PG&E; requested the issuance of $105 million for similar projects, including another $8 million for nuclear waste disposal, bringing to $16 million the total amount of tax-exempt bond money PG&E; would use to expand its facility for the storage of high-level radioactive waste.

PG&E; asked the board to delay a decision on its request for $105 million, so that the company can recalculate how much more money it needs for other pollution control projects at Diablo Canyon, Jenkins-Stark said.

By using tax-exempt bonds, PG&E; would obtain an interest rate as low as 5%--far lower than the 12% rate it would have to pay if it tried to sell corporate bonds, he said.

Calculated on the basis of the proposed $105-million bond sale, this would result in a savings in interest of $170 million over the life of the bonds.