Wilmington-based nuclear power plant insurer agrees to $400 million settlement

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Photo by D Ramey Logan, Creative Commons

The owners of the San Onofre nuclear plant reached a $400 million settlement with with Wilmington-based  Nuclear Electric Insurance Limited (NEIL) for the San Onofre outages caused by the failures of replacement steam generators.

The nuclear power is located near the coast in northern San Diego County, CA.

Pedro Pizarro, president of Southern California Edison, majority owner of San Onofre, said the settlement appropriately resolves the San Onofre owners’ claims under the insurance issued by NEIL. He added that 95 percent of the net insurance proceeds will benefit customers, based on the following allocations for each of the San Onofre owners: SCE, $312.8 million; San Diego Gas & Electric, $80 million; and the city of Riverside, $7.16 million..”

SCE continues to seek additional remedies on behalf of customers for the defective steam generators supplied by Mitsubishi Heavy Industries (MHI).

SCE is actively pursuing  claims against MHI and Mitsubishi Nuclear Energy Systems for the defective steam generators Mitsubishi designed and built for  the nuclaer plant . The failure of the steam generators led to the permanent shutdown of the plant at the urging of government officials, who cited potential danger to the surrounding population.

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SCE announced in June 2013 that it would retire the plant  , and has begun preparations to decommission the facility.

Nuclear Electric Insurance, a longtime member of the Wilmington corporate community,  was formed in response to the Three Mile Island accident. It covers nuclear power plants in the United States.

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