Customers Benefit from $400 Million Insurance Settlement for San Onofre Outages
October 22 2015 - 9:00AM
Business Wire
The owners of the San Onofre nuclear plant have reached a $400
million settlement with Nuclear Electric Insurance Limited (NEIL)
for the San Onofre outages caused by the failures of replacement
steam generators.
Pedro Pizarro, president of Southern California Edison, majority
owner of San Onofre, said the settlement appropriately resolves the
San Onofre owners’ claims under the insurance issued by NEIL. He
added that 95 percent of the net insurance proceeds will benefit
customers, based on the following allocations for each of the San
Onofre owners: SCE, $312.8 million; San Diego Gas & Electric,
$80 million; and the city of Riverside, $7.16 million.
“This settlement represents a good outcome that is in the best
interests of our customers,” Pizarro said. “We expect Southern
California Edison customers will begin to see the direct benefit of
this settlement in early 2016 through reduced rates.”
SCE continues to seek additional remedies on behalf of customers
for the defective steam generators supplied by Mitsubishi Heavy
Industries (MHI). Under the auspices of the International Chamber
of Commerce, SCE is actively pursuing arbitration claims against
MHI and Mitsubishi Nuclear Energy Systems for the defective steam
generators Mitsubishi designed and built for San Onofre. The
failure of the steam generators led to the permanent shutdown of
the plant and caused substantial financial and other harm.
SCE announced in June 2013 that it would retire San Onofre Units
2 and 3, and has begun preparations to decommission the facility.
SCE has established core principles of safety, stewardship and
engagement to guide decommissioning. For more information about
SCE, visit songscommunity.com.
About Southern California EdisonAn Edison International
(NYSE:EIX) company, Southern California Edison is one of the
nation’s largest electric utilities, serving a population of nearly
14 million via 5 million customer accounts in a 50,000-square-mile
service area within Central, Coastal and Southern California.
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version on businesswire.com: http://www.businesswire.com/news/home/20151022005483/en/
Southern California EdisonMedia Contact:Maureen Brown, (626)
302-2255orInvestor Relations Contact:Scott Cunningham, (626)
302-2540
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