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1985-020-Opposing The Proposed Rate Increase To The Pacific Gas And Electric Company To Recover All Costs Of Diablo Canyon Power PlantFleeting of 2/4/85 Item No. 44 RESOLUTION NO. 1985 -20 A RESOLUTION OPPOSING THE PROPOSED RATE INCREASE OF THE PACIFIC GAS AND ELECTRIC COMPANY TO RECOVER ALL COSTS OF DIABLO CANYON POWER PLANT WHEREAS, Pacific Gas and Electric Company has announced its intention to recover the funds invested in the Diablo Canyon Nuclear Power Plant; and WHEREAS, the cost overruns in the construction of this nuclear facility have been at least ten -fold the original figure for construction; and WHEREAS, the project is estimated to cost over $5 billion; and WHEREAS, Pacific Gas and Electric Company cannot pass to consumers the costs of the plant until the plant has reached full commercial operation; and WHEREAS, the California Public Utilities Commission is required by law to review and authorize any rate increases; and WHEREAS, Pacific Gas and Electric Company has filed an application with the California Public Utilities Commission to recover these costs; and WHEREAS, approval by the California Public Utilities Commission for recovery of the full costs will lead to a substantial rate increase; NOW, THEREFORE, BE IT RESOLVED that the Town Council of the Town of Los Gatos is requesting the California Public Utilities Commission to closely scrutinize the appropriateness of all costs assigned to the Diablo Canyon Nuclear Power Plant, especially regarding funds expended due to error and carelessness, as contained in the Pacific Gas and Electric Company application; and BE IT FURTHER RESOLVED that Pacific Gas and Electric Company be authorized to recover in rates only those costs found to be reasonable and prudent. In no event should Pacific Gas and Electric be reimbursed for costs which can be attributed to poor construction, poor planning, mismanagement, lack of proper supervision, lack of quality control, failure to double check specifications, and adherence to specifications and any other inadequacy in the planning or execution of the Diablo Canyon Nuclear Facility; and BE IT FURTHER RESOLVED that the Public Utilities Commission exclude in any rate increase peripheral costs such as legal costs, administrative costs, salary and expenses of Pacific Gas and Electric officials, clerical costs, publicity and public relations costs and other costs which can be attributed to the above - described management, or to Pacific Gas and Electric's efforts to achieve this rate increase or Pacific Gas and Electric's efforts to gain approval of any of the various state and federal regulatory agencies for the operation of this nuclear facility. PASSED AND ADOPTED by the Town Council of the Town of Los Gatos, California, at a Regular meeting held this 4th day of February 1985, by the following vote: AYES: COUNCILMEMBERS Eric D. Carlson, Terrence J. Daily, Thomas J. Ferrite, Brent N. Ventura, and Mayor Joanne Benjamin NOES: COUNCILMEMBERS None ABSENT: ABSTAIN: ATTEST: CLERK OF THE TOWN OF LOS ATUS COUNCILMEMBERS None COUNCILMEMBERS None SIGNED: A R OF THE TOWN OF LOS IGATOS -2-