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SCE Demands that Mitsubishi Heavy Industries Reimburse for Expenses Incurred Because of Mitsubishi’s Failed San Onofre



  SCE Demands that Mitsubishi Heavy Industries Reimburse for Expenses Incurred
  Because of Mitsubishi’s Failed San Onofre Replacement Steam Generators

  SCE Spent More Than $140 Million Investigating the Failure, Yet Mitsubishi
  Maintains that Just $7.6 Million of Those Expenses Are Its Responsibility

Business Wire

ROSEMEAD, Calif. -- October 1, 2013

Southern California Edison (SCE) today criticized Mitsubishi Heavy Industries
(Mitsubishi) for “stonewalling” and made public its demand that Mitsubishi
reimburse SCE for expenses incurred in responding to fundamental defects in
the San Onofre replacement steam generators (RSGs) that Mitsubishi designed
and manufactured. SCE’s demand follows the Sept. 23 findings from the Nuclear
Regulatory Commission that Mitsubishi’s replacement steam generators failed
because of a flaw in the computer code that Mitsubishi used to design and
manufacture them.

According to SCE’s Sept. 27 letter to Mitsubishi, available at
www.songscommunity.com/docs/edisoninvoices.pdf, “Edison spent over $140
million investigating the cause of excessive tube wear in the RSGs following a
tube leak in one of the Unit 3 RSGs, plugging damaged tubes in all four RSGs,
and attempting to restart Unit 2 after both Units were shut down due to the
RSG defects.” SCE’s letter states that “it is simply incredible for Mitsubishi
to assert that only $7.6 million of those expenses are Mitsubishi’s
responsibility.”

SCE’s letter also maintains that, although Mitsubishi claims that “it has
still not received sufficient documentation to recognize its warranty
obligations,” the facts demonstrate otherwise. According to the letter,
“Edison has gone well beyond its obligations to provide documentation
supporting its costs,” including:

  * “Mitsubishi employees [were] present at the plant and involved in much of
    the activity described in these invoices”;
  * “Edison has provided Mitsubishi with several thousand pages of detailed
    backup documents supporting the charges”;
  * “Edison employees have spent hundreds of hours responding to Mitsubishi’s
    ongoing demands for information, including by creating specialized reports
    for Mitsubishi”; and
  * “The documentation Edison has provided far exceeds the level of detail
    that is customary in the industry — and far exceeds any backup that
    Mitsubishi has ever provided Edison in support of any charges it is
    claiming.”

The SCE letter concludes that “Mitsubishi’s actions have made it clear that no
reasonable level of documentation will ever be sufficient to support payment
in its view. We are therefore unwilling to engage in yet another
time-consuming effort, only to face continued stonewalling by Mitsubishi.”

In July, SCE filed a Notice of Dispute with Mitsubishi in an attempt to
recover all damages caused by Mitsubishi’s failed design and manufacture of
the San Onofre replacement steam generators that led to the shutdown of the
nuclear plant. SCE has also announced that it continues to reserve all of its
rights as to any and all legal remedies available against Mitsubishi. Finally,
SCE has made public key documents regarding the failure of the replacement
steam generators in a Digital Document Library located at
www.SONGScommunity.com/library, although the Digital Library remains
incomplete because of Mitsubishi’s continued refusal to permit other key
documents to be made public.

About Southern California Edison

An Edison International (NYSE:EIX) company, Southern California Edison is one
of the nation’s largest electric utilities, serving a population of nearly 14
million via 4.9 million customer accounts in a 50,000-square-mile service area
within Central, Coastal and Southern California.

Contact:

Media Contact:
Southern California Edison
Maureen Brown, Media Relations, (626) 302-2255
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