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.