Fifteen years after blackouts rolled through some California neighborhoods, utility customers are still feeling the effects of post-energy-crisis regulatory changes that pushed the risk of costly projects from utility investors to ratepayers.
This little-noticed change in how utility rates are set has had profound repercussions for utility customers, leaving them on the hook for billions of dollars even when projects fail.
- Southern California Edison spent $680 million to replace steam generators at the San Onofre nuclear plant. The generators proved faulty, leaking a small amount of radiation. Current cost to ratepayers for the botched project and plant closure: $3.3 billion.
- Edison collected $31.9 million for an upgrade at the Mohave Generating Station, which closed at the end of 2005 after the Nevada coal-burning facility was found in violation of the Clean Air Act. Total customer bill for upgrade and closure: $122 million.
- Pacific Gas & Electric Co. scrapped a plan to build a 1,000-mile transmission line to Canada after partners PacifiCorp and others pulled out. Edison abandoned a separate line in Arizona after failing to get a permit. Total cost to ratepayers for the projects, which were dropped in 2011: $20 million.
- Now, in the aftermath of a natural gas leak near Porter Ranch, Southern California Gas Co. customers might be required to pay for in-progress upgrades to the Aliso Canyon natural gas field even if the facility never reopens. Potential cost: $200 million or more.