SONGS Co-Owners Reach $400 Million Insurance Settlement

 SONGS Co-Owners Reach $400 Million Insurance Settlement

Southern California Edison (SCE) reached a $400 million settlement for the outages resulting from a shut down nuclear power plant.
SCE said the settlement with Nuclear Electric Insurance Limited (NEIL) resolves their claims under the insurance for the San Onofre Nuclear Generating Station (SONGS). Pedro Pizarro, president of SCE, said that 95 percent of the net insurance proceeds will benefit customers and be allocated to all of the plant’s owners. SCE will receive $312.8 million; San Diego Gas & Electric, $80 million, and the city of Riverside, $7.16 million.
SCE announced in June 2013 that it would retire both units at SONGS after replacement steam generators were found to be defective. Under the auspices of the International Chamber of Commerce, SCE is still seeking arbitration from Mitsubishi Heavy Industries, the company who built and supplied the generators, and Mitsubishi Nuclear Energy Systems. The failure of the generators led to the shutdown of the units.
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