An arbitration panel of the International Chamber of Commerce (ICC) has awarded Southern California Edison (SCE) $ 125 million in its dispute with Mitsubishi Heavy Industries (MHI) over the failed replacement of four steam generators at the San Onofre Nuclear Generating Station (SONGS), a fiasco that ultimately led to the plant’s premature retirement.

Victory for MHI

The amount was a victory for MHI, as SCE was seeking a total of $ 7.6 billion for the loss of the plant. MHI was also awarded $ 58 million in attorneys’ fees because of its additional costs incurred in defending the larger claim. SCE must split the remaining $ 63 million with its co-owners San Diego Gas & Electric (SDG&E) and the City of Riverside. The utilities were seeking the additional funds to help cover retirement costs for SONGS, which are estimated at almost $ 5 billion. Those costs will now be borne mostly by ratepayers.

SCE’s claim was brought under its contract with MHI, which had a liability limit of $ 137 million.…

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