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HomeMy WebLinkAboutAgenda Report - October 5, 1983 (25)AWN 15, • CITY COUNCIL MEETING -aa OCTOBER 5, 2983 ..5 9 PUC APPLICATICM City Clerk Reimche presented a letter from Peter W. Hanschen of Pacific Caps and Electric CaTany regarding PCAE Application No. 83-98-49 requesting permission to recover, through rates, the costs to retire and deccumi ss i on I kv bo i t Bay Paver PIant, Unit No. 3. ,Y -tt �F ' A Y a- _ � s -S 1 ' :sr s t -�s �l: r �'�. ,! R Ste") :•. 1 ` _ 1•.y�"y4.r'jR r - P PAC I P I C C;_E.S AND P' 6 Im LIM C T RIRMCWCPM PANY 77 BP'0 EBOX 7442.E SANAFRANCNS�OC CALIFORNIA 94120 TEL OPIER (415) 543.7813 PtTtft W. HANSCH<N ALICE M. REIMCHE 1 ArTOQW September ITY R TO: THE STATE, COUNTY AND CITY OFFICIALS, AND INTERESTED PARTIES PACIFIC GAS AND ELECTRIC COMPANY (PGandE) has filed Application No. 83-09-49 in which it requests permission to recover through rates the costs to retire and decommission Humboldt Bay Power Plant, Unit No. 3 (Unit 3). Unit 3 is a nuclear power ;dant which PGandE operated for 13 years. Changing regulatory requirements caused the plant to remain shut down after a routine refueling outage in 1976. These requirements, along with requirements imposed since then and the probability of additional requirements, have substantially increased the estimated costs to restart Unit 3. The increased costs, coupled with the relative decline in fossil fuel costs, have made restarting Unit 3 economically unattractive*. In this Application, PGandE requests to recover over a period of 16 years the unrecovered capital investment, plus certain costs to be incurred to decommission Unit 3. (Decommissioning refers to the overall process through which radioactive material is safely removed and the plant is ultimately dismantled). To recover these costa, PGandE requests to raise electric rates by approximately $30 million [or less than one (1) percent] in 1985. In the remaining years, rates necessary to recover these costs will decline. PGandE proposes that rates to recover costs related to Unit 3 in the years after 1985 be determined and authorized in subsequent proceedings. The requested increase in rates will not raise PGandE's Electric Department rate of return above the level last found reasonable by the California Public Utilities Commission. The State, the counties, the municipal corporations, and other parties interested in the above-mentioned filing will be furnished a copy of Application No. 83-C9-49, with slated exhibits, upon written request made to PGandE, 77 Beale Street, P. O. Box 7442, San Francisco, California 94120, Attention: Peter W. Hanschen. .1 TO: THE STATE, COUNTY AND CITY OFFICIALo", AND INTERESTED PARTIES September 21, 1983 Page 2 This notice is given in accordance with Rule 24 of the revised Rules of Practice and Procedure of the California Public Utilities Commission. Very truly yours, PACIFIC GAS AND ELECTRIC COMPANY By Q,&, k,,-) PETER W. HANSCHEN