General Electric Co.'s nuclear energy unit agreed to pay $2.7
million to settle allegations that it made false statements to
regulators over an advanced nuclear reactor design, the Justice
Department said Thursday.
General Electric Hitachi Nuclear Energy Americas LLC, a joint
venture formed last year between GE and Hitachi Ltd., allegedly
made false statements to the Energy Department and the Nuclear
Regulatory Commission about a part of its Economic Simplified
Boiling-Water Reactor, a steam dryer that removes liquid water
droplets from steam produced by nuclear reactions that generate
electricity in boiling-water type reactors.
The government alleged GE Hitachi concealed known flaws in its
steam dryer analysis and falsely represented that it had properly
analyzed the dryer in accordance with applicable standards.
The NRC requires companies to show that vibrations caused by the
seam dryer won't cause damage to a nuclear plant to apply for
certification. GE Hitachi received funding from the Energy
Department between 2007 and 2012 to cover up to half the cost of
developing the steam dryer and getting certification.
GE Hitachi denies all the allegations, a GE spokesman said,
adding it is in the company and customers' best interests to settle
with regulators.
"It allows the NRC to focus solely on certifying this reactor,"
he said.
The NRC is still reviewing GE Hitachi's application.
"Transparency and honesty are absolutely critical when dealing
with issues relating to the design of a nuclear reactor," said
Stuart F. Delery, assistant attorney general for the Justice
Department's civil division. "The Justice Department will protect
federal funds and the Nuclear Regulatory Commission's crucial
mandate of ensuring public safety."
The allegations arose from a whistleblower lawsuit filed under
the False Claims Act by a former GE Hitachi employee.
Write to Everdeen Mason at everdeen.mason@wsj.com
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