U.S. utility company presses charges against Mitsubishi

6 years ago by in Business

U.S. utility company Southern California Edison filed a notice against Mitsubishi, claiming that the company manufactured defective steam generators that led to the closing of their San Onofre Nuclear Generating Station last month. The company said in a press release that the MHI and Mitsubishi Nuclear Energy Systems “seriously breached” the contract failing to deliver what it promised.

The notice might be followed by a damages lawsuit, Kyodo reports. According to the international press, the damages might reach $2.1 billion. A Mitsubishi unit, Mitsubishi Nuclear Energy Systems Inc., designed and supplied the plant with the largest steam generators ever used at a U.S. nuclear facility. The devices were installed in 2010 and 2011. But the equipment soon started leaking, and the problems were too pervasive to fix, according to SoCal Edison and the U.S. nuclear regulators decided to retire the plant last month.

Frank Gillespie, a senior vice president of the Mitsubishi’s nuclear unit, said he believes Mitsubishi’s liability is limited to the $137 million which is the value of the equipment his company supplied to San Onofre. “Technically, it could have been fixed,” he said. “But it could have been expensive”, he added.