PG&E Inks Steam Gen Contract for Diablo

Westinghouse Electric announced it will supply eight new steam generators for Pacific Gas & Electric?s Diablo Canyon nuclear power plant. The contract was executed although the California Public Utilities Commission has not given the utility advance approval for contract costs. In addition, the deal came while proceedings on approval for spending $706 million for the nuclear plant?s investments have not yet concluded. The contract is ?in excess of $100 million? and extends through September 2008, according to Westinghouse. ?PG&E has made a significant and well-thought-out investment at the Diablo Canyon Nuclear Power Plant that serves to ensure that they will continue to economically produce safe, clean and reliable electric energy for the next several decades which will benefit their customers and their investors,? stated Nick Liparulo, vice-president, Westinghouse Engineering Services. ?PG&E signed the contract for design, construction, and delivery of the replacement steam generators with Westinghouse in August because this process takes about 40 months and the first replacement outage is scheduled for early 2008,? Ron Low, PG&E spokesperson, explained. He did not say whether the contract has any mitigation for the risk of CPUC disapproval of the investment. ?We are confident that our justification of this project will stand up to the scrutiny of the CPUC,? he added. ?We recently concluded two weeks of hearings on the subject during which the cost-benefit for customers was thoroughly explained. PG&E believes that the positive cost-benefit to ratepayers was clearly evident,? Low said. Also concerning Westinghouse, the administrative law judge overseeing the steam generator proceeding at the CPUC issued an order protecting the confidentiality of some Westinghouse-related documents October 13. The order was in response to a PG&E request. The documents concern whether the utility should have pursued, or should now pursue, a lawsuit against Westinghouse for compensation for steam generator degradation. Other companies have sued Westinghouse on this matter.

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PG&E Inks Steam Gen Contract for Diablo

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