SCE and three other companies revise their combined claim value
SCE and three other companies revise their combined claim value
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Mitsubishi Heavy Industries, Ltd.
On October 17, 2013, Mitsubishi Heavy Industries, Ltd. (MHI) announced that Southern California Edison (SCE) and Edison Material Supply LLC (EMS) filed a demand for arbitration against MHI and Mitsubishi Nuclear Energy Systems, Inc. (Note 1), a wholly-owned subsidiary of MHI (together, Mitsubishi), under the dispute resolution procedure specified in the contract (Purchase Order) for the supply of Replacement Steam Generators for San Onofre Nuclear Generating Station (SONGS) (Note 2).
In the arbitration, SCE, EMS, SDG&E and COR (Note 3) claimed compensation for damages against Mitsubishi alleging claims including breach of the warranty obligation of the contract. In the MHI notice titled "SCE and three other claimants submitted documents to ICC" disclosed on July 28, 2015, MHI notified that the combined claim value was estimated to be US$7.57 billion (approximately 908 billion yen at the rate of US$1 = 120 yen). Now, according to an official submission filed on July 14, 2016, the Claimants have changed the combined value of the claim filed by SCE, EMS, SDG&E and COR to US$6.667billion (approximately 707 billion yen at the rate of US$1 = 106 yen), which falls within the range allowed under the arbitration procedure.
The above value does not reflect a decision of the arbitration tribunal on the merits of the four companies' claims, but is only the amount claimed by those companies as their combined damages. Mitsubishi disputes the validity of the claimed amount.
If there are any new matters which require disclosure, Mitsubishi will update the relevant information promptly.
Note 1. Mitsubishi Nuclear Energy Systems, Inc. is a wholly-owned subsidiary of MHI, and serves as MHI's nuclear power system business base in the U.S.
Note 2. SONGS is co-owned by SCE (78.2%), San Diego Gas & Electric (SDG&E) (20%), and City of Riverside (COR) (1.8%).
Note 3. In the "SDG&E and COR submitted pleadings to ICC" disclosed on July 22, 2014, MHI noted that the ICC approved joining of SDG&E and COR into the arbitration on June 16, 2014.
The above value does not reflect a decision of the arbitration tribunal on the merits of the four companies' claims, but is only the amount claimed by those companies as their combined damages. Mitsubishi disputes the validity of the claimed amount.
If there are any new matters which require disclosure, Mitsubishi will update the relevant information promptly.
Note 1. Mitsubishi Nuclear Energy Systems, Inc. is a wholly-owned subsidiary of MHI, and serves as MHI's nuclear power system business base in the U.S.
Note 2. SONGS is co-owned by SCE (78.2%), San Diego Gas & Electric (SDG&E) (20%), and City of Riverside (COR) (1.8%).
Note 3. In the "SDG&E and COR submitted pleadings to ICC" disclosed on July 22, 2014, MHI noted that the ICC approved joining of SDG&E and COR into the arbitration on June 16, 2014.