Edison Demands $140M From SONGS Steam Gen Maker

By Published On: October 4, 2013

Southern California Edison Oct. 1 accused Mitsubishi of “stonewalling” in reimbursing the utility $140 million for the flawed steam generator replacements at the San Onofre Nuclear Generating Station. Edison rejected the manufacturer’s nearly $8 million estimate of what it says are legitimate, reimbursable claims. The utility stated in a Sept. 27 letter that “it is simply incredible for Mitsubishi to assert that only $7.6 million of those expenses are Mitsubishi’s responsibility.” Edison said it spent $140 million investigating the cause of the deterioration of the steam generator replacements that Mitsubishi manufactured. The utility also claimed it adequately documented its expenses “well beyond its obligations.” Last July, Edison formally notified Mitsubishi it would seek recovery of more than $2 billion in damages caused by the latter’s allegedly failed design and manufacture. That resulted in the facility’s permanent closure, announced in June, a year-and-a-half after a leak and unprecedented tube wear was found (Current, July 19, 2013). Two weeks ago, the Nuclear Regulatory Commission issued a "notice of nonconformance" to Mitsubishi for the steam generator design problems. The manufacturer has 30 days from Sept. 20 to respond. In a separate development Oct. 1, San Diego residents told the California Public Utilities Commission that they should not have to pay for the power bought to fill the void created by the San Onofre outage. During a commission hearing on the question of who should pay—ratepayers or the utility owners of the closed down plant—San Diego Gas & Electric stated it’s seeking rate recovery, but the bill to ratepayers would be neutral because of other cost reductions, and ones that are fair to customers and shareholders, according to news reports. California Public Utilities Commission member Mike Florio, who is in charge of the docket on allocating the power costs related to the San Onofre outage, was the only commission member to attend the meeting. “Clearly this is very broad public interest in what we are doing in the San Onofre proceeding,” Florio said Oct. 3.

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