California utility gets $400 million settlement tied to closed San Onofre nuclear plant

Utility customers in Southern California are in line to see savings from the demise of the San Onofre nuclear power plant.

Plant operator Southern California Edison said in a statement Thursday that it reached a $400 million insurance settlement covering power outages caused by failed equipment.

Virtually all of it will go to customers after legal costs are paid.

Under the deal, majority owner Edison will receive $313 million.

Minority owners would get a smaller slice: San Diego Gas & Electric gets $80 million, and the city of Riverside, $7 million.

For typical Edison residential customers, it was expected to result in about a 2 percent cut in monthly bills beginning next year.

The plant located between Los Angeles and San Diego was closed for good in 2013.