California: Edison Plans to Permanently Close San Onofre Nuclear Plant

Edison International (EIX) plans to permanently close its San Onofre nuclear plant in California, shut since January 2012 by a leak of radioactive water, because regulators may take too long to decide whether it can restart.

Southern California Edison, the utility unit that owns and operates the two reactors, will record after-tax costs of $300 million to $425 million this quarter as a result of shutting the reactor, Rosemead, California-based Edison said today in a statement.

Four commercial nuclear-power units have been permanently closed in the U.S. this year, the highest ever annual total, according to U.S. Nuclear Regulatory Commission data. A glut of shale-fed natural gas and government-subsidized wind has upended power market dynamics and squeezed margins, making costly repairs uneconomical for some nuclear operators.

“The continuing uncertainty about when or if SONGS might return to service was not good for our customers, our investors, or the need to plan for our region’s long-term electricity needs, Chairman and Chief Executive Officer of Edison Ted Craver said in the statement.

The decision to shut the reactor came after the NRC’s Atomic Safety and Licensing Board ordered a hearing on the company’s plan to restart the least-damaged reactor at 70 percent of full power. A regulatory decision may be a year away, Edison said in today’s statement. Time and money are better spent on plants or power lines to replace San Onofre’s output, the company said.

Both reactors at the San Onofre plant, about 45 miles (72 kilometers) southeast of Long Beach were shut by the radioactive leak and discovery of unusual wear on tubes that transfer reactor heat to power-generating turbines. The plant had the capacity to generate 2,200 megawatts, enough to power 1.76 million average homes.

The announcement was made before regular trading began in New York. Edison rose 1.3 percent to $46.36 ... Read More...