Dive Summary:
- Southern California Edison Co. (SCE) has started its legal fight Thursday to hold the manufacturer of San Onofre’s steam generators responsible for failed equipment leading to the plant’s radiation leak and official shutdown in June.
- In legal papers, SCE claims that Mitsubishi Heavy Industries Ltd. and Mitsubishi Nuclear Energy Systems are liable for defective steam generators installed in a $670 million upgrade in 2009 and 2010, plus the cost of buying replacement power the utility estimates at over $2 billion. Mitsubishi's generators were supposed to last 40 years, but “many of Mitsubishi’s representations and promises were false,” SCE said. SCE and co-owners of the plant, San Diego Gas & Electric and the city of Riverside, continue to incur financial due to the plant’s closing.
- “In short, Mitsubishi totally and fundamentally failed to deliver what it promised,” stated a letter to Mitsubishi from SCE’s lawyers.
From the article:
“In a separate case, state utility regulators are considering who should pay for Mitsubishi’s replacement generators, ratepayers or shareholders. A decision could be months, or years, away. Any money Edison recovers from Mitsubishi could reduce the exposure of ratepayers.”