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You are here: Home MFP-News & Events The California Public Utilities Commission (CPUC) has made the preliminary finding that the steam generator replacement (SGRP) for Diablo Canyon Nuclear Power Plant is cost effective, despite the absence of a final Environmental Impact Report
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The California Public Utilities Commission (CPUC) has made the preliminary finding that the steam generator replacement (SGRP) for Diablo Canyon Nuclear Power Plant is cost effective, despite the absence of a final Environmental Impact Report

This decision amounts to a judgment that the proposed project is cost effective as compared to the cost of possible alternatives, and therefore the rate-payers can be charged to pay for the expected cost of the $706 million project.

The San Luis Obispo Mothers for Peace had filed a formal protest, pointing out the following reasons why the Commission should not approve the SGRP:

1. Any decision is premature until the EIR is finalized, expected to be during the summer of 2005. Required mitigations to environmental problems can be expected to add to the costs of this project.
2. CPUC has not made its own, independent analysis of figures and cost estimates provided by PG&E.
3. The PCUC ignores possible seismic upgrades and enhanced security (against terrorism) investments that are reasonably likely over the lifetime of the new steam generators. New scientific understandings of California earthquakes have been gleaned over the past few years, but have not yet been thoroughly applied to the Hosgri fault 2.5 miles away from Diablo Canyon.
4. Both PG&E and the CPUC assume that zero Major Capital Projects will be required for the period of 2016 – 2025 for this aging plant. This is an incredible assumption, as it is typical for aging-related costs to increase as plants get older.
5. The decision ignores the possibility that there may be prolonged plant outages as a result of operational or equipment failure as the plant gets older. Replacement power would add additional costs of about $1 billion per year.

The San Luis Obispo Mothers for Peace holds that this decision, made before the EIR is complete, is illegal. The California Environmental Quality Act prohibits this practice. Today’s action by the CPUC effectively gives PG&E the go-ahead to begin the process of replacing the steam generators at the expense of rate-payers. The CPUC plan to consider the EIR separately and later does not meet the requirements of CEQA.


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