HomeMy WebLinkAbout1986-109
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RESOLUTION NO.
86-109
2 RESOLUTION OF THE CITY OF SAN BERNARDINO REQUESTING THE
PUBLIC UTILITIES COMMISSION TO GRANT ONLY THOSE RATE INCREASES IN
3 THE MATTER OF THE APPLICATION OF SOUTHERN CALIFORNIA EDISON
COMPANY, APPLICATION NO. 86-02-034, AS ARE DETERMINED TO BE JUST,
4 NECESSARY, AND REASONABLE IN SOUTHERN CALIFORNIA EDISON COMPANY'S
OWNING, OPERATING AND MAINTAINING OF PALO VERDE NUCLEAR
5 GENERATING STATION.
6 BE IT RESOLVED BY THE MAYOR AND COMMON COUNCIL OF THE CITY
OF SAN BERNARDINO AS FOLLOWS:
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8 SECTION 1. Recitals.
9 A. Southern California Edison Company, hereinafter
10 "Edison", owns a 15.8% share of the Palo Verde Nuclear Generating
11 Station located approximately 50 miles west of Phoenix, Arizona.
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B. Generating Unit No. 1 of that facility is already in
13 commercial operation, and Unit No. 2 of that facility is
14 expected to be placed in commercial operation late in 1986 or
15 early in 1987, at which time Edison will be permitted to recover
16 in rates its reasonable costs of owning, ope~ating and
17 maintaining both such units of the facility.
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C. Edison filed its Application No. 85-05-144 with the
19 Public Utilities Commission, hereinafter "Commission", to request
20 authorization to change Edison's rates to recover Edison's share
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of the costs of owning, operating, and maintaining Palo Verde
22 Unit No. 1 now that the unit has achieved commercial operation.
23 Proceedings concerning that Application are currently pending
24 before the Commission.
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D. Edison now claims that Palo Verde Unit No. 2 is nearing
26 completion, and will soon be placed in commercial operation.
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E. Edison's customers have not yet paid any of the costs of
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1 Palo Verde, and will not be required to do so as to any
2 individual generating unit until the unit is completed and
3 producing electricity in regular commercial operation.
4 F. Application No. 86-02-034 requests authorization from
5 the Commission to make changes to Edison's rates to recover what
6 Edison represents to be its share of the costs of owning,
7 operating, and maintaining Palo Verde Unit No.2, such rates to
8 become effective when that unit of the nuclear generating plant
9 begins commercial operation.
10 SECTION 2. Implementation.
11 A. The Mayor and Common Council of the City of San
12 Bernardino hereby request that the Commission thoroughly review
13 all costs claimed to be associated with the construction of the
14 Palo Verde Nuclear Generating Station, as to each of the units
15 thereof, and make a determination as to which of those costs and
16 expenses represent a reasonable investment apd thus are entitled
17 to be included in Edison's rate base. Reasonableness of
18 investment should consider all aspects of claimed construction
19 costs and a careful and thorough inquiry into the cost overruns
20 incurred and the reasonableness of the investment from the
21 standpoint of present and future needs.
22 B. The Mayor and Common Council further urge the Commission
23 to carefully review all expenses booked, estimated and projected
24 by Edison, and disallow any which are not fully supported by the
25 evidence as reasonable and necessary, and that the Commission
26 approve for inclusion in rates only those expenses incurred and
27 to be incurred which are in fact reasonable.
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I SECTION 3. Action. The City Clerk is hereby authorized and
2 directed to send a copy of this Resolution to the Commission and
3 to Edison as evidence of the City's concern in this matter.
4 I HEREBY CERTIFY that the foregoing resolution was duly
5 adopted by the Mayor and Common Council of the City of San
6 Bernardino at a
re2ular
meeting thereof, held on
7 the
day of
April
, 1986, by the
7th
8 following vote, to wit:
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('nnnr.il Members Estrada. Reilly, Marks,
AYES:
Qniel Frazier. Strickler
NAY S :
None
ABSENT:
('nnnr.il Member Hernandez
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./ City Clerk
, :
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The foregoing resolution is hereby apprpved this
day
17 of
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20
P..pril
, 1986.
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Mayor of the City of s~rnardino
Approved as to form:
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