Southern California Edison (SCE) formally demanded Mitsubishi Heavy Industries (MHI) to undergo a contractually mandated audit of MHI’s design and manufacture of the replacement steam generators for the San Onofre Nuclear Generating Station in California.
The latest audit demand says that SCE officials have asked on three previous occasions for MHI to submit to the audit, but that MHI has repeatedly refused to do it.
“I am appealing to you directly because Mitsubishi’s repeated refusal to agree to such an audit is harmful to the public, regulators, and our entire industry, as it hinders efforts to understand and learn from the RSGs’ failures,” wrote Ron Litzinger, SCE’s president. (Click here to read the entire letter).
MHI has argued that the contractual language only applies to financial information necessary to support invoices, while SCE says the language allows them to “examine and copy books, accounts, relevant correspondence, specifications, time cards, drawings, designs and other documentation” as they are related to work done under the purchase order.
Mitsubishi Nuclear Energy Systems says in an Oct. 4 letter to SCE that the company “never failed to acknowledge its obligation to reimburse Edison for the warranty expenses incurred,” and that MHI advanced more than $45 million against its warranty obligations in December 2012 under the contract. (Click here to read the full response from MHI).
The U.S. Nuclear Regulatory Commission said in September that MHI’s faulty computer modeling led to the failed design and manufacturing of the generators, which led to premature wear in the generators after they were replaced at SONGS. SCE announced in June that it would retire both units at the plant.
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