02-20-15 BPU RPT 12 - Laserfiche WebLink

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tiW A'TkR F! WN %E.RCis'Y t k E'. a RIVERSIDE PUBLIC UTILITIES ............... Board Memorandum PUBLIC UTILITIES BOARD OF PUBLIC UTILITIES DATE: FEBRUARY 20, 2015 ITEM NO: 12 SUBJECT: SAN ONOFRE NUCLEAR GENERATING STATION (SONGS) DECOMMISSIONING AGREEMENT AMONG SOUTHERN CALIFORNIA EDISON COMPANY (SCE), SAN DIEGO GAS & ELECTRIC COMPANY (SDG&E), THE CITY OF ANAHEIM (ANAHEIM) AND THE CITY OF RIVERSIDE (RIVERSIDE) ISSUE: The item for Board of Public Utilities consideration is the approval of the SONGS Decommissioning Agreement (Agreement) among SCE, SDG&E, Anaheim and Riverside to carry out the decommissioning of SONGS. RECOMMENDATIONS: That the Board of Public Utilities recommend that the City Council: 1. Approve the SONGS Decommissioning Agreement between Southern California Edison Company, San Diego Gas & Electric Company, the City of Anaheim and the City of Riverside for the decommissioning of the San Onofre Nuclear Generating Station Units 2 and 3 (SONGS); 2. Authorize the City Manager, or his designee, to execute the Agreement outlined in this report; 3. Authorize the City Manager, or his designee, to execute any documents necessary to administer the Agreement that are consistent with the policies established by the City Council; and 4. Authorize the City Manager, or his designee, to update the exhibits and schedules attached in the Decommissioning Agreement with no substantive changes to the Agreement. BACKGROUND: Riverside owns 1.79% of San Onofre Nuclear Generating Station (SONGS) Units 2 and 3 located in Camp Pendleton in San Diego County, near the City of San Clemente. While operational, SONGS Units 2 and 3 provided forty (40) megawatts of capacity and approximately fifteen (15) percent of Riverside's annual energy requirement. The other co-owners are Southern California Edison (SCE), San Diego Gas & Electric Company (SDG&E) and the City of Anaheim. The co-owners lease the land on which SONGS is located from the Department of the Navy. The operation of SONGS is governed by the Nuclear Regulatory Commission (NRC), which issues a license for such operation. SCE is the operating agent of SONGS and is the primary NRC license holder. On January 30, 2012, a minor tube leak was found in SONGS Unit 3. Both Units 2 and 3 were shut down for inspection. Subsequent inspections revealed that the tube leaks in both Units were caused by the design flaws in the recently-installed steam generators that were only two years old in Unit 2's case and about one year in Unit 3's case. On June 7, 2013, SCE, as the operating agent for SONGS, made the unilateral decision to permanently retire both SONGS Units 2 and 3 from commercial operation.