II. Background

SONGS is currently in operation with a capacity of approximately 2,150 megawatts. It is located on the California coast 62 miles southeast of Los Angeles, in San Diego County, near the City of San Clemente. The site is located within the boundaries of the Camp Pendleton Marine Corps Base. Each of the two units has two steam generators in which the heat from water circulated through the reactor is used to turn another stream of water into steam to power turbines that turn electric generators.

SONGS is currently licensed by the Nuclear Regulatory Commission (NRC) to operate until 2022. By D.05-12-040 in Application (A.) 04-02-026, we approved SCE's application to undertake the SGRP.

A.04-02-026 was filed by SCE alone. At that time, SDG&E indicated its intent not to participate in the SGRP. Pursuant to the SONGS ownership agreement, this would result in the transfer of a portion of SDG&E's ownership share to SCE. To implement the transfer, SDG&E would have to file a Pub. Util. Code § 851 application.2 In D.05-12-040, we determined that the reasonableness of the transfer would be addressed in SDG&E's § 851 application, which we required SDG&E to file within 120 days of adoption of D.05-12-040. SDG&E subsequently decided to participate in the SGRP, and filed this application instead of a § 851 application.

2 All section references are to the Public Utilities Code unless otherwise specified.

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