Southern California Edison (SCE) and Edison Material Supply LLC (EMS) claimed damages of $7.57 billion in relation to the steam generator replacement at the shut down San Onofre Nuclear Generating Station (SONGS) in California.
In the October 2013 arbitration, SCE and three other companies claimed an amount of not less than $4 billion in compensation for damages alleging breach of warranty obligation of the contract. On July 27, SCE and the companies submitted their evidence that allegedly supports damages of $7.57 billion. MHI says its liability is limited to $137 million under contractural provisions, including the cost of replacement power.
A leak was detected in both steam generators at SONGS in January 2012 after MHI replaced the generators in both reactors. After the leak was found, both units shut down until SCE said in June 2013 that it would permanently close them due to the costs to fix the issue. SCE and MHI have been disputing who should foot the bill for replacement power costs ever since.
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