EVC ousted from conducting $1 million Diablo Canyon study

October 17, 2018

A leadership change is in the works for a study of the economic impact of the planned closure of Diablo Canyon nuclear power plant. The cost had ballooned to approximately $1 million while the state of California is in the process of creating a near-duplicate report. [Cal Coast Times]

The nonprofit Economic Vitality Corporation (EVC) had been tasked with leading a project to analyze the economic impact of the closure of Diablo Canyon and create a strategic plan for local agencies to mitigate the financial effects of the nuclear plant shutdown. A memorandum of understanding (MOU) was reached between the EVC and San Luis Obispo County and local cities on the study and strategic plan.

In a recent letter to the EVC, the county and multiple cities state the nonprofit failed to meet its fundraising requirement and encountered problems in its relations with a contractor. The letter notes, though, that the scope and scale of the project have risen, as has the cost.

“This project has experienced a number of difficulties, including project delays, project management issues and communication challenges,” the county and participating cities state in a letter informing the EVC they are terminating the MOU.

The EVC failed to reach it initial fundraising target of $120,000 by Aug. 30, which was part of its requirement for managing the first phase of the project, according to the letter. The second phase of the project consists of local government funding that was contingent upon the EVC meeting its fundraising deadline.

Additionally, the EVC has had challenges in dealing the contractor Vital Economy, the letter states. Vital Economy recently sent a letter alleging breaches on the part of the EVC and threatening to terminate is contractual involvement in the project.

San Luis Obispo County will now take the lead on the project.

The economic impact study will move forward, even though a law authored by Sen. Bill Monning requires the California Public Utilities Commission to conduct a study of its own — albeit using a 3rdparty to do the work — that, too, evaluates the economic impact of the closure of Diablo Canyon. The law, SB 968, allocates $400,000 from nuclear decommissioning funds for the study.

In the letter sent to the EVC, the county and cities state the “parallel data study” requires coordination with several statewide government agencies.

“These developments have created a need for expertise and project management that appears to exceed the EVC’s resources and capacity at this time,” the letter states.

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The real and most obvious question should be HOW in the heck should a study on a local issue consisting of best guessing and conjecture COST $1,000,000????

Recon the Wallace group got the bid?  

Why worry, it’s only taxpayer’s money and there is plenty more of if if needed.

Just another example of government not being to count their losses and move on. The closure will take years, probably beyond many of our life time, and the loss will be minimal as most employees will stay on until retirement or get their significant severance pay. Government are the ones crying the most because as I have stated before most of this tax money goes into their General Fund of which approximately 75% goes towards salaries, benefits and their unfunded retirements. So if you see the picture you can see why they have the crying towel out. Then the schools. There are many districts in the county that are “surviving” with what they have. The districts may need to hire economist and actually become accountable for how they spend the money they get. This whole thing is just another “study” to raise your taxes, rates or whatever they come up with.

I’m still a little shell shocked that ratepayers throughout the state are being asked to pay for the loss off income to our County created by the closure of Diablo Canyon, when it was the local government and citizens that did everything possible to cause it’s closure!!!

Shouldn’t we have to stew in our own juices?

And it was those same local officials and agencies that knew the plant was going to close for years, even decades and yet did nothing to prepare for the closure.

So let me get this straight, government and another nonprofit have created another unfunded liability to address what happens when a business closes per the agreement of decades ago? Thankfully we can read this stuff and watch it happen right in front of our faces. This is the strategy used in a adverse adverse possession case, a legal maneuver to take it or make it a requirement.

It’s unfortunate that the EVC non-profit’s director won’t get his $120,000.