Edison International Seeks $7.57B From Mitsubishi Heavy Industries Over San Onofre Closure

Edison International has filed a claim against Mitsubishi Heavy Industries for $7.57 billion for losses incurred after defective steam generators were installed in the San Onofre Nuclear Power Plant in California, Mitsubishi said Tuesday.

Mitsubishi, which says that its total liability for Edison International's losses were contractually capped at $137 million, called the claim filed with the International Chamber of Commerce in San Francisco, “factually incorrect, legally unsound and inappropriate,” according to news reports.

After the announcement, stock prices for Mitsubishi Heavy Industries fell 5.6 percent in Tokyo, where the company is listed, the Insurance Journal reported.

The San Onofre NPP was temporarily closed in January 2012 after subsidiary Southern California Edison installed the steam generators in a facility upgrade in 2011 that cost $680 million. In June 2013, Edison decided to close the plant permanently.

According to the Utility Reform Network spokeswoman Mindy Spatt, half of any settlement with Mitsubishi would go to Edison and San Diego Gas & Electric customers, who have already had to cover 70 percent of the shutdown costs – about $3.3 billion – under a settlement arbitrated by the state of California.

Edison has filed a $400 million claim with the insurance group Nuclear Electric Insurance Limited, the L.A. Times reported. That money would also go to relieve customers of some of the shutdown costs assigned to them.

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  • Anonymous
    Anonymous

    I believe Mitsubishi should have to pay for everything that occurred at the San Onofre plant. Including reimbursement for the generators. For the shutdown that called for the Inspection of both the generators .For the lost wages of employees during shutdown time while investigation went on.To the paying of special advisers of problem solving the issue.  To the decommissioning of the 2 Units. It is their mistake.