PG&E 2014 Annual Report Download - page 30

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Air Emissions Data for Utility-Owned Generation
In addition to GHG emissions data provided above, the table below sets forth information about the air emissions from
the Utility’s owned generation facilities. The Utility’s owned generation (primarily nuclear and hydroelectric facilities) comprised
approximately 36.4% of the Utility’s delivered electricity in 2013. PG&E Corporation and the Utility also publish air emissions
data in their annual Corporate Responsibility and Sustainability Report.
2013 2012
Total NOx Emissions (tons) 153 158
NOx Emissions Rate (pounds/MWh) 0.01 0.01
Total SO2 Emissions (tons) 17 15
SO2 Emissions Rate (pounds/MWh) 0.0011 0.0009
Water Quality
On May 19, 2014, the EPA issued final regulations to implement the requirements of the federal Clean Water Act that
require cooling water intake structures at electric power plants, such as the nuclear generation facilities at Diablo Canyon, to
reflect the best technology available to minimize adverse environmental impacts. The federal regulations provide more flexibility
in complying with some of the Clean Water Act’s requirements. Various industry and environmental groups have challenged
the federal regulations in proceedings pending in the U.S. Court of Appeals for the Fourth Circuit. California’s once-through
cooling policy discussed below is considered to be at least as stringent as the new federal regulations. Therefore, California’s
implementation process for the state policy will likely continue without any significant change.
At the state level, the California Water Board has adopted a policy on once-through cooling that generally requires the
installation of cooling towers or other significant measures to reduce the impact on marine life from existing power generation
facilities in California by at least 85%. The California Water Board has appointed a committee to evaluate the feasibility and cost
of using alternative technologies to achieve compliance at Diablo Canyon. The committee’s consultant submitted its final report
to the California Water Board in September 2014 and the board is expected to issue a final decision regarding Diablo Canyon’s
compliance with the state policy in 2015. If the California Water Board requires the installation of cooling towers that the Utility
believes are not technically or economically feasible, the Utility may be forced to cease operations at Diablo Canyon and may
incur a material charge. Even if the Utility is not required to install cooling towers, it could incur significant costs to comply with
alternative compliances measures or to make payments to support various environmental mitigation projects. The Utility would
seek to recover such costs in rates. The Utility’s Diablo Canyon operations must be in compliance with the California Water
Board’s policy by December 31, 2024.
The final requirements of the federal and state cooling water policies could affect future negotiations between the Central
Coast Board and the Utility regarding the status of the 2003 settlement agreement. (See “Diablo Canyon Power Plant” in Item 3.
Legal Proceedings below.)
Nuclear Fuel Disposal
Under the Nuclear Waste Policy Act of 1982, the DOE and electric utilities with commercial nuclear power plants were
authorized to enter into contracts under which the DOE would be required to dispose of the utilities’ spent nuclear fuel and high-
level radioactive waste by January 1998, in exchange for fees paid by the utilities’ customers. The DOE has been unable to meet its
contractual obligation with the Utility to dispose of nuclear waste from the Utility’s two nuclear generating units at Diablo Canyon
and the retired nuclear facility at Humboldt Bay. As a result, the Utility constructed interim dry cask storage facilities to store
its spent fuel onsite at Diablo Canyon and at Humboldt Bay until such time as the DOE fulfills its contractual obligation to take
possession of the spent fuel. The Utility and other nuclear power plant owners sued the DOE to recover the costs that they incurred
to construct interim storage facilities for spent nuclear fuel.
In September 2012, the U.S. Department of Justice and the Utility executed a settlement agreement that awarded the
Utility $266 million for spent fuel storage costs incurred through December 31, 2010. The settlement agreement also provided a
claims process by which the Utility submits annual requests for reimbursement of its ongoing spent fuel storage costs. In 2013 and
2014, the Utility was awarded an additional $50 million for costs incurred between 2011 and July 2014. These proceeds are being
refunded to customers through rates. The settlement agreement, as amended, does not address costs incurred for spent fuel storage
beyond 2016 and such costs could be subject to future litigation. Considerable uncertainty continues to exist regarding when and
whether the DOE will meet its contractual obligation to the Utility and other nuclear power plant owners to dispose of spent fuel.