SCE Makes Public a White Paper, Key Documents Showing that Mitsubishi Failed to Offer Viable Plan to Repair or Replace Failed

  SCE Makes Public a White Paper, Key Documents Showing that Mitsubishi Failed
  to Offer Viable Plan to Repair or Replace Failed Replacement Steam
  Generators

   SCE Challenges Mitsubishi to Allow the Publication in Utility’s Digital
                        Library of Other Key Documents

Business Wire

ROSEMEAD, Calif. -- November 5, 2013

Southern California Edison (SCE) today made public a white paper, supported by
key documents, demonstrating that “for over 16 months, Mitsubishi failed to
offer any viable, implementable and licensable plan that would safely and
reliably restore the replacement steam generators to 100-percent power for
their promised 40-year operational life” at the San Onofre nuclear plant.

SCE’s publication of these materials follows the Sept. 20 findings of the
Nuclear Regulatory Commission that Mitsubishi’s replacement steam generators
at the San Onofre Nuclear Generating Station failed, in part, due to a flaw in
Mitsubishi’s proprietary computer code used to design and manufacture them.

The steam generator white paper and timeline made public today by SCE can be
found at www.SONGScommunity.com/library. According to SCE, once the
Mitsubishi-designed and -manufactured replacement steam generators failed,
“SCE spent hundreds of millions of dollars to investigate, repair and keep San
Onofre in a state of readiness for potential restart.”

Despite Mitsubishi’s contractual obligations, Mitsubishi failed to provide SCE
with complete documentation regarding the replacement steam generators’
failures and potential repairs, “repeatedly delayed in providing a final
repair recommendation and failed to substantiate that the repair proposal and
the replacement proposal eventually offered would resolve the underlying
problems with Mitsubishi’s design.”

The SCE materials also detail SCE’s repeated attempts to gain access to
important documents in Mitsubishi's possession. Nonetheless, according to the
SCE white paper, “Mitsubishi still refuses to allow SCE access to its
documents.”

The SCE documents released today also illustrate how Mitsubishi failed “to
fulfill its contractual obligation to ‘repair or replace (as appropriate) any
defective part’ of the replacement steam generators ‘at its sole expense with
due diligence and dispatch.’” On the contrary, “despite these constant
meetings and other communications, Mitsubishi failed to offer a repair plan
that (1) solved the cause of the replacement steam generator failures, (2) was
feasible and implementable, (3) was validated and (4) was licensable.”

In the end, according to the SCE documents, “in part because Mitsubishi
provided ‘no viable path to restoring SONGS to service, SCE is forced to
retire and decommission SONGS as a result of Mitsubishi's total and
fundamental failure to meet its contractual obligations, including its
obligation to repair or replace the defective replacement steam generators
with due diligence and dispatch.’”

SCE has already demanded that Mitsubishi reimburse the utility for the costs
incurred investigating the cause of the failed replacement steam generators.
To date, Mitsubishi has accepted responsibility for only $7 million of the
$140 million spent investigating the problems caused by Mitsubishi's failed
design.

Earlier this month, SCE filed a Request for Arbitration of the utility’s
claims against Mitsubishi in an attempt to recover all damages caused by
Mitsubishi’s failed replacement steam generator design.

Edison has made public key documents regarding the failure of Mitsubishi’s
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.

SCE announced June 7 that it would permanently shut down San Onofre Units 2
and 3, and begin the process to decommission the nuclear plant. For more
information about SCE, follow us on Twitter and Facebook.

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, (626) 302-2255
 
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