Southern California Edison customers will be glad to know that their bills will be lowered by the company in the wake of a recently reached settlement with an insurance carrier.
According to 10News, South California Edison announced Thursday that it has reached a settlement with insurance carrier Nuclear Electric Insurance Limited over the closing of the San Onofre Nuclear Generating Station situated in the northern San Diego County.
Because of this settlement, the largest subsidiary of Edison International is going to receive $400 million. Not only that, approximately 95 percent of the revenue out of the agreement will be allotted for the favorable decrease of customers' bills.
Edison president Pedro Pizarro announced the good news about the bills the same time the settlement was proclaimed to the public.
"This settlement represents a good outcome that is in the best interests of our customers. We expect Southern California Edison customers will begin to see the direct benefit of this settlement in early 2016 through reduced rates," Pizarro was quoted as saying.
Under the agreed settlement, the $400 million will be divided into three: majority owner Edison is getting $312.8 million, minor owners San Diego Gas & Electric will receive $80 million, while the city of Riverside will collect $7.16 million, as per Los Angeles Times.
It was found out earlier that the $3.3 billion sum of money used to closed down the nuclear plant will be shouldered by customers. Since then consumer advocates have asked the California Public Utilities Commission to reopen hearings since the commission's president, Michael Peevey, was found to have engaged in secret talks with Southern California Edison.
San Diego lawyer Michael Aguirre, who has been one of Edison's detractors, opined that customers should not have adjustments to their bills, insisting that a refund is the best way to handle the situation amid the settlement.
Aguirre also pointed out that instead of allotting only 95 percent of the money to the lowered bills of consumers, the insurance settlement money should all go to the ratepayers.
The effect of the settlement will be felt by consumers starting early 2016, as confirmed by Pizarro, according to The Orange County Register.
The San Onofre nuclear plant indefinitely ceased its operations at the end of Jan. 2012 when a leak occurred in one of its reactors which, according to investigators, was caused by the vibrations in steam generators from Mitsubishi Heavy Industries of Japan.
In June 2013, the reactors were formally retired and the company closed down for good instead of pursuing an expensive "restart process."
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