This Day On The Street
Continue to site right-arrow
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
TheStreet Open House

Southern California Edison Announces Intent To Downsize Staffing At San Onofre Nuclear Generating Station

Stocks in this article: EIX

As one of the nation’s largest electric utilities, Southern California Edison (SCE) and the management of its San Onofre Nuclear Generating Station (SONGS) are committed to top performance and providing safe, efficient and affordable energy to nearly 4.9 million customer accounts. As a result of exhaustive benchmarking and analysis of industry best practices, SCE has concluded that SONGS’ staffing and costs are significantly higher than other similar dual unit, non-fleet nuclear power plants. Indicators also show there are opportunities to reduce operating and maintenance costs by improving plant processes while fully maintaining all safety commitments. As a result, SCE announced today its intent to downsize the SONGS’ organization to 1,500 – a reduction of approximately 730 employees – beginning fourth quarter of 2012.

This effort was initiated more than two years ago as part of the larger SONGS Excellence plan to align SCE’s processes and staffing levels with the top performing nuclear operating plants in the industry and its benchmarked best practices.

SCE previously testified to the anticipated staff reduction in its pending General Rate Case testimony. Strict California environmental and regulatory standards, coupled with a greater financial investment to replace aging infrastructure, have increased the overall cost of delivering electricity to customers, highlighting the need to achieve greater efficiencies where possible, including at SONGS.

The steam generator issues at SONGS also require that SCE be prudent with its future spending while SCE and regulators review the long-term viability of the nuclear plant. The reality is that the Unit 3 reactor will not be operating for some time.

Deliberate steps will be taken over the next year to ensure SONGS is prepared to operate safely and in alignment with SCE’s future operating budgets.

Over the next two months, SONGS’ employee workloads will be quantified and peer comparisons made to better understand what specific changes are necessary to transition to top performer status. A decision regarding the new organizational structure is anticipated in late October.

1 of 2

Check Out Our Best Services for Investors

Action Alerts PLUS

Jim Cramer and Stephanie Link reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

Jim Cramer's protégé, David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
Try it NOW
Try it NOW
Try it NOW

Check Out Our Best Services for Investors

Dividend Stock Advisor

Jim Cramer's protégé, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
Try it NOW
Try it NOW
Try it NOW
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!

Markets

DOW 17,416.85 +225.48 1.31%
S&P 500 2,021.25 +19.09 0.95%
NASDAQ 4,683.4070 +45.4130 0.98%

Partners Compare Online Brokers

Free Reports

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs