01-22-2016 BPU RPT 08 - Laserfiche WebLink

Home

W A I= R E V E R L Y I. I F F Jwl 69& RIVERSIDE PUBLIC UTILITIES P U B L I C U T I L I T I E S Board Memorandum BOARD OF PUBLIC UTILITIES DATE: JANUARY 22, 2016 ITEM NO: 8 File ID — 16 -0194 — C SUBJECT: APPROVAL OF A RESOLUTION AUTHORIZING THE COMMENCEMENT OF THE DECOMMISSIONING OF THE SAN ONOFRE NUCLEAR GENERATION STATION UNITS TWO AND THREE ISSUE: The item for Board of Public Utilities consideration is the approval of a Resolution required by the Decommissioning Trust Fund Agreement (Trust Agreement) to begin drawing upon decommissioning funds held in trust by US Bank. RECOMMENDATIONS: That the Board of Public Utilities recommend that the City Council: Adopt a Resolution authorizing the commencement of the decommissioning of Units 2 (U2) and 3 (U3) of the San Onofre Nuclear Generating Station (SONGS); and 2. Authorize the City Manager, or his designee, to execute any documents necessary to administer the Resolution to draw upon Riverside's decommissioning trust funds. BACKGROUND: Riverside owns 1.79% of SONGS U2 and U3 located in San Diego County, near the City of San Clemente. Commercial operations commenced in 1983 and 1984 for U2 and U3, respectively. SONGS provided a reliable, zero greenhouse gas emitting, supply resource serving Riverside's residents over several decades. While operational, SONGS U2 /U3 provided forty megawatts of capacity and approximately fifteen percent of Riverside's annual energy requirements. In 2010 and 2011, two replacement steam generators (RSGs) were installed in both U2 and U3, respectively. In January 2012, U2 was shut down for its first scheduled refueling outage post RSG installation. On January 30, 2012 a minor tube leak was found in U3, requiring that the unit be shut down for safety reasons. As a result of the tube leak, both U2 and U3 were subjected to extensive testing and inspections, ultimately concluding that the RSGs in both units contained design flaws. The RSGs were only two years old for U2, and less than a year old for U3. On June 7, 2013, SCE, as SONGS operating agent, made the unilateral decision to permanently retire both units. On June 12, 2013, SCE submitted to the United States Nuclear Regulatory Commission (NRC) a certification that effective June 7, 2013, it had permanently ceased power operations of SONGS U2 and U3, thereby initiating the decommissioning process. The other co- owners also responsible for the costs to decommission SONGS are Southern California Edison (SCE), San Diego Gas & Electric Company, and the City of Anaheim. On March 3, 2015 the City Council approved the SONGS Decommissioning Agreement setting forth the process to decommission the plant. The decommissioning process is expected to take at least 20 years.