(The following is a reformatted version of a press release
issued by Mitsubishi Heavy and received via electronic mail. The
release was confirmed by the sender.) 
June 12, 2013 
Concerning the Recent Announcement by Southern California Edison
for its Plans to Retire San Onofre Nuclear Generating Station 
On June 7, 2013, Southern California Edison (SCE) announced its
decision to permanently retire Units 2 and 3 of its San Onofre
Nuclear Generating Station (SONGS). As explained by SCE in the
press release announcing the units’ retirement, its permanent
shutdown decision was driven by regulatory concerns involving
the Nuclear Regulatory Commission (NRC) and associated economic
impacts such as the costs of replacement power and maintaining
SONGS in a state of readiness to
SONGS Units 2 and 3 have been off line since January 2012, when
SONGS Unit 3 experienced primary to secondary leakage of reactor
coolant in one steam generator. The direct cause of the leakage
was determined to be tube-to-tube contact wear in the U-bend
region of the steam generator. The kind of wear that occurred
had never been observed in any steam generator of the U-bend
The SONGS steam generators were designed and manufactured in
accordance with well established and accepted codes and
standards along with our own knowledge and experience plus
that of outside experts. 
Since the tube wear of the steam generator at Unit 3 was first
detected, Mitsubishi Heavy Industries, LTD. and Mitsubishi
Nuclear Energy Systems (Mitsubishi) have worked closely with SCE
to analyze technical issues necessary to safely restart SONGS
Unit 2 and 3 and Mitsubishi has developed a
repair plan which is practical and effective. 
Additionally, the other steam generators that Mitsubishi has
designed and manufactured in Japan and other countries have
featured significantly different heat transfer surface area and
weight and have operated safely for decades. None of them have
experienced similar tube wear as that which
occurred at SONGS. Therefore, Mitsubishi is confident that
similar tube wear will not occur at any of
those steam generators. 
Mitsubishi’s liability to SCE is limited by the contractual
provisions to which the two parties agreed, as SCE has discussed
in its filings with the U.S. Securities and Exchange Commission,
and includes an overall limitation of liability (approximately
$137 U.S. million) as well as a preclusion of
consequential damages, including the cost of replacement power. 
Mitsubishi will continue to work with SCE, the NRC and others in
the industry to share data and lessons learned from this
experience. The top priority of Mitsubishi is, and always has
been, the safe and reliable operation of all the plants and
components it designs, engineers, supplies and supports. 
For your information, at this moment, Mitsubishi does not
expect there to be an impact by this SONGS shutdown on our
results of operation considering the said limitation of
liability and our belief that Mitsubishi has fulfilled its
obligations under the contract. If there are any new matters
which require disclosures, Mitsubishi will update the
information promptly. 
(bjh) NY 
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