Signatories to the 2018 Settlement Agreement Southern - PowerPoint PPT Presentation

Signatories � to � the 2018 � Settlement � Agreement • Southern � California � • Coalition � of � California � Edison* Utility � Employees* • San � Diego � Gas � & � Electric* • Direct � Access � Customer � Coalition • Alliance � for � Nuclear � • Ruth � Henricks Responsibility • California � Large � Energy � • Office � of � Ratepayer � Consumers � Association Advocates* • California � State � University • The � Utility � Reform � Network* • Citizens � Oversight � DBA � • Women’s � Energy � Matters Coalition � to � Decommission � San � Onofre * � Also � signed � the � 2014 � Settlement � Agreement. �� Friends � of � the � Earth � signed � the � 2014 � Settlement � Agreement � but � did � not � sign � the � 2018 � Settlement � Agreement. 1

Key � Terms � of � the � 2018 � Settlement � Agreement • Cessation � of � Collections : � Utilities � stop � collecting � SONGS � costs � in � rates � when � their � remaining � investment � balance � is � $775 � million—the � Cessation � Date – Estimated � to � occur � on � December � 19, � 2017 � (but � depends � on � how � the � CPUC � resolves � related � issue � in � a � different � proceeding, � in � which � case � it � could � be � April � 21, � 2018) – Utilities � refund � to � customers � amounts � collected � after � the � Cessation � Date • Prior � Collections : � Utilities � retain � all � amounts � collected � before � the � Cessation � Date • Nuclear � Fuel : � Utilities � do � not � recover � nuclear � fuel � in � rates � after � the � Cessation � Date, � but � retain � all � amounts � received � from � the � future � sale � of � fuel 2

• Mitsubishi : � SONGS � co � owners � sued � Mitsubishi, � the � supplier � of � the � defective � steam � generators. �� Under � the � 2014 � settlement, � the � Utilities � would � credit � customers � with � 50% � of � the � net � recovery � from � Mitsubishi, � after � deducting � legal � fees. �� Under � the � new � settlement, � there � is � no � further � sharing � of � recoveries � from � Mitsubishi. • GHG : � Utility � shareholders � will � contribute � $12.5 � million � to � support � research � by � CSU � into � the � development � of � technologies � to � reduce, � avoid, � or � mitigate � GHG � emissions � and � to � integrate � renewable � resources � in � rural � and/or � disadvantaged � communities. • Decommissioning : � 2018 � Settlement � Agreement � does � not � affect � decommissioning � plans � or � costs � (which � are � funded � from � a � Nuclear � Decommissioning � Trust � Fund). • Other � agreements : – Southern � California � Edison � Company � and � San � Diego � Gas � & � Electric � Company � Shareholder � Agreement � (Shareholder � Agreement) – Agreement � to � Resolve � Citizens � Oversight � Inc., � et � al. � v. � CPUC, � et � al., � Federal � Court � Lawsuits � (Federal � Court � Agreement) – The � Shareholder � Agreement � and � the � Federal � Court � Agreement � are � referenced � in � the � proposed � 2018 � settlement � agreement � and � are � available � on � the � CPUC � website � in � the � docket � card � for � proceeding � I.12 � 10 � 013 3

Customer/Shareholder � Division � of � Financial � Responsibility � (%) • Utilities � sought � to � recover � approximately � $5.5 � billion � in � total � SONGS � costs • Next � slide � graphically � shows � the � division � of � financial � responsibility � between � shareholders � and � customers � under � the � 2014 � and � 2018 � Settlement � Agreements � as � a � percentage � of � this � $5.5 � billion � total • The � first � bar � shows � the � 2014 � Settlement � Agreement � taking � into � account � various � credits � that � reduced � customers’ � share � • The � second � bar � shows � the �� 2018 � Settlement � Agreement � if � adopted � – the � amounts � collected � by � the � Utilities � under � the � 2014 � Settlement � Agreement � prior � to � the � Cessation � Date 4

Compare � the � 2014 � and � 2018 � Settlement � Agreement � Results 5

Rate � Impacts � of � the 2018 � Settlement � Agreement • SCE � and � SDG&E � customers � will � no � longer � pay � for � $775 � million � in � SONGS � investments � that � had � not � yet � been � recovered � ($624 � for � SCE � and � $151 � for � SDG&E) – SCE � customers’ � portion � of � that � total � reduction � is � worth � roughly � $68 � per � residential � customer � over � the � next � four � years. – SDG&E � customers’ � portion � is � worth � roughly � $64 � per � residential � customer � over � the � next � four � years. • SCE � and � SDG&E � will � provide � a � refund � for � amounts � collected � after � Cessation � Date 6