Complaint alleges overbilling on San Onofre generator replacement

Utility could have charged up to $100 million too much based on incorrect inflation calculation

The Alliance for Nuclear Responsibility on February 13 filed a complaint with the California Public Utilities Commission alleging, among other things, that San Onofre Nuclear Generating Station operator Southern California Edison is guilty of “multiple violations of California and federal securities laws by intentionally, recklessly, or negligently misrepresenting, by as much as $100 million, the amount of CPUC-authorized inflation adjustment for the San Onofre Steam Generator Replacement Project (“SGRP”) in written filings with the United States Securities and Exchange Commission (“SEC”).”

The crux of the argument is that Edison improperly used a different measurement than the Consumer Price Index (which was named in prior documents) to determine inflation, a decision that could have resulted in massive overbilling on the cost of replacing the steam generators at San Onofre, which failed after less than two years of operation.

The Alliance is asking for the state Commission to call on the attorney general’s office to bring charges under the state’s false claims act, which could subject the utility to a penalty of triple the amount overbilled to any government agency. The group further suggests that the Commission consider finding individuals at Edison in contempt for false statement.

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