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
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