International Tribunal Confirms MHI Supplied Defective Equipment for San Onofre Nuclear Plant, Caps Arbitration Award at Cont...
March 13 2017 - 5:26PM
Business Wire
An international arbitration panel, in a 2-1 decision, has
awarded the owners of the San Onofre nuclear plant $125 million for
the plant’s defective replacement steam generators supplied by
Mitsubishi Heavy Industries (MHI).
“We had hoped the award would more accurately reflect the true
magnitude of damage caused by Mitsubishi’s defective steam
generators,” said SCE President Ron Nichols. “Unfortunately, the
arbitration panel concluded that the contract’s prescribed
liability limit should be respected and no additional award can be
granted despite the harm caused.”
SCE announced retirement of San Onofre in June 2013, and four
months later filed the arbitration claim against MHI with the
International Chamber of Commerce (ICC).
Nichols said the ICC’s International Court of Arbitration today
notified San Onofre’s owners that it had awarded $125 million for
the claims against MHI, and ordered San Onofre’s owners to pay MHI
$58 million in legal fees.
He noted one of three arbitrators filed a dissenting opinion
finding that San Onofre’s owners should have been awarded more than
$1 billion. Nichols said SCE continues to review the lengthy
decision.
The decision includes an allocation of damages and costs in
accordance with plant ownership shares, which results in a net
award to SCE of approximately $52 million. The amount of SCE’s
share of damages may be subsequently adjusted following discussions
among the San Onofre owners.
SCE announced in June 2013 that it would retire San Onofre Units
2 and 3, and has begun the process to decommission the facility.
SCE has established core principles of safety, stewardship and
engagement to guide decommissioning. San Onofre, which when
operational supplied 2,200 megawatts of electricity, is co-owned by
SCE, San Diego Gas & Electric and the city of Riverside.
For more information about San Onofre, visit
songscommunity.com.
About Southern California Edison
An Edison International (NYSE:EIX) company, Southern California
Edison is one of the nation’s largest electric utilities, serving a
population of nearly 15 million via 5 million customer accounts in
a 50,000-square-mile service area within Central, Coastal and
Southern California.
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Southern California EdisonMedia Contact:Maureen Brown,
626-302-2255orInvestor Relations:Scott Cunningham, 626-302-2540
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