SONGS Owners Win Damages for Defective Equipment
David Wagman | March 15, 2017An international arbitration panel, in a 2-1 decision, has awarded the owners of the San Onofre nuclear power plant in California $125 million for the plant’s defective replacement steam generators supplied by Mitsubishi Heavy Industries (MHI).
San Onofre’s owners were ordered to pay MHI $58 million in legal fees.
SONGS Units 2 and 3 in 2012.“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 in a statement. The arbitration panel concluded that the contract’s prescribed liability limit should be respected and no additional award should be granted. The owners initially sought damages of $7.6 billion.
SCE announced in June 2013 that it would retire San Onofre Units 2 and 3. When operating, San Onofre had a generating capacity of 2,200 megawatts of electricity, and is co-owned by SCE, San Diego Gas & Electric and the city of Riverside, Calif.
The plant's first unit, Unit 1, operated from 1968 to 1992. It was a first-generation Westinghouse pressurized water reactor. Unit 2 was a Combustion Engineering two-loop pressurized water reactor that entered service in 1983. Unit 3, also from Combustion Engineering, started in 1984. Upgrades designed to last 20 years were made to the reactor units in 2009 and 2010; however, both reactors had to be shut down in January 2012 due to premature wear found on over 3,000 tubes in replacement steam generators that had been installed in 2010 and 2011.