Investment Banking Firm: Fears of significant delay in restart of San Onofre nuclear plant — Stock downgraded to ‘underperform’

Published: February 14th, 2013 at 5:02 pm ET
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Title: San Onofre: Mitsubishi told to hand over nuclear plant report
Source: LA Times
Author: Abby Sewell
Date: Feb. 14, 2013

The U.S. Nuclear Regulatory Commission has asked Mitsubishi Heavy Industries to hand over a redacted version of a proprietary report on equipment issues at the now-shuttered San Onofre nuclear plant.

The commission, which has already reviewed the full report, said it intends to make the redacted version public.

Sen. Barbara Boxer (D-Calif.) and U.S. Rep. Ed Markey (D-Mass.) obtained a leaked copy of the report and wrote to the head of the NRC last week alleging that the report “indicates that Southern California Edison (SCE) and MHI were aware of serious problems with the design of San Onofre nuclear power plant’s replacement steam generators before they were installed.” […]

Also Thursday, investment banking firm Jefferies & Co. downgraded Edison stock from “hold” to “underperform” based on fears that the NRC might “significantly delay” restart of the plant and could find Edison at fault in its investigation. […]

See also: [intlink id=”just-in-u-s-senator-wants-probe-after-reading-confidential-report-on-sickly-california-nuke-plant-shows-they-knew-about-san-onofre-problems-but-chose-not-to-make-fixes” type=”post”]{{empty}}[/intlink]

Published: February 14th, 2013 at 5:02 pm ET
By

14 comments

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14 comments to Investment Banking Firm: Fears of significant delay in restart of San Onofre nuclear plant — Stock downgraded to ‘underperform’

  • moonshellblue moonshellblue

    Money now that's their language and if it does not enhance their bottom line they will shut it down. What the heck it only takes another sixty years to decommission and they have an 18 month head start.

  • PavewayIII PavewayIII

    What should happen: Southern California Edison, like any poorly-run corporation, should go out of business. Management is clearly unable to run a utility profitably without buying junk parts for their boiler. Senior management from both SCE and Mitsubishi should be arrested and tried for conspiracy to commit multiple acts of terrorism against the people of America. DHS Stazi and any senior FBI officials should be summarily dismissed for failing to uncover a plot to kill Americans, failing to act once the plot was discovered, and ignoring that pedophile NJ senator (the Dominican Republic sex tourist). NRC commissioners… well, they should be sent to the Dominican Republic to 'service' U.S. senators.

    What will happen: NRC will scold SCE publicly, but will quietly approve a San Onofre restart. SCE management will award themselves a bonus and lay off a few thousand workers. Mitsubishi will sell the same flawed design to eager Chinese boiler builders. The FBI will track down the source of the leaked document. The DHS Stazi will take out the snitch – it will involve black Nazi storm-trooper costumes (they just LOVE those things). Senators will take their sex tourism trips to the U.S. welfare colony of Puerto Rico. And the NRC will continue to 'service' their industry masters.

  • Time Is Short Time Is Short

    The downgrade is due to the owners of SONGS – SoCal Edison, SDG&E, and the County of Riverside – being left responsible for decommissioning costs if their SONGS fee gets eliminated. This is the reason US Senators are involved. How many other NPP's around the country have an additional 'nuclear' fee that should be eliminated? The figures are staggering:

    "While the PUC has a provision to investigate rate cuts when plants are down for over nine months (which would be November and December for the two SONGS reactors), Como noted that San Onofre is almost certain not to restart before then, if it is ever to restart at all. The full commission has twice postponed votes on an earlier investigation."

    "Joseph P. Como, head of the PUC’s Division of Ratepayer Advocates, sent a letter to the commissioners this week stating they should “remove [San Onofre] from Southern California Edison’s … and San Diego Gas & Electric’s… rate base now instead of waiting several more months and allowing hundreds of millions of dollars in needless costs to be borne by customers.""

    http://capitoilette.com/2012/08/16/nrc-cites-san-onofre-nuclear-plant-for-lapse-in-security/

    • Time Is Short Time Is Short

      "Edison, the plant's operator, is charging ratepayers about $54 million a month, letter says."

      http://lajolla.patch.com/articles/cpuc-official-edison-customers-shouldnt-pay-for-san-onofre

      Every time an 'investigation' is started, the decision to eliminate the $54 million a month ratepayer scam is postponed. Now with the US Senators involved, the scam will continue for months.

      Now, if the ratepayers sue to get all that money back, and win, well, you can see how much that would cost Edison & Co. An extremely high risk for shareholders, and no sane investment adviser would recommend them.

      The cancer victims downwind of SONGS can't win in court, but this is a whole 'nother matter, and the list of lawyers that would sign onto this is very, very long. Absolute dereliction of duty by numerous agencies, and deep, deep pockets. I can assure you, this scares the hell out of management, and all the other NPP operators around the country that might have similar rate structures.

  • pcjensen

    about time peeps with power paid attention… make sure they stay focused on safety – coz – there aint no such panacea & spells end of nukes

  • Jebus Jebus

    Repost…

    They ARE going to be shut down, for good…

    AGUIRRE ACCUSES EDISON OF SCHEMING TO IMPOSE RATE HIKES WITHOUT PUBLIC REVIEW TO PAY FOR FAILED SAN ONOFRE NUCLEAR REACTORS

    February 12, 2013 (San Diego)–This morning, ratepayer advocate and former San Diego City Attorney Michael J. Aguirre revealed details behind a new legal action against Southern California Edison (SCE) with what he terms “smoking gun documents showing how SCE executives have unlawfully levied multiple rate hikes on San Diego and Southern California ratepayers without formal approval from regulators.”

    Aguirre is demanding refunds from Southern California Edison and SDG&E for ratepayers in our region, which is home to the highest electric rates in the USA.

    There is compelling evidence showing SCE knows the San Onofre nuclear power plant costs were not reasonable. The steam generators have not worked for over a year, they lasted for less than two years and were supposed to last over 18 years, Aguirre noted.

    http://eastcountymagazine.org/node/12442

    http://eastcountymagazine.org/sites/eastcountymagazine.org/files/2013/February/SGRP%202013%20Advice%20Letter%20SGRP%20Protest%20Support.pdf

    http://eastcountymagazine.org/sites/eastcountymagazine.org/files/2013/February/Motion%20Setting%20Deadline%20for%20Cost%20Application%20and%20Reasonableness%20Review.pdf

  • Jebus Jebus

    NRC Meeting Offers Status Update On Restart Plan For San Onofre

    Video

    The NRC panel said they still have “a lot of work to do” before deciding whether to approve Southern California Edison’s plant to bring San Onofre's Unit Two back on line at 70 percent power. The plant has been offline since a radiation leak in Unit 3 shut the plant down a year ago.

    The agency has issued 32 “Requests for Additional Information,” and is waiting for some final answers from Edison.

    http://www.kpbs.org/news/2013/feb/13/nrc-meeting-offers-status-update-restart-plan-san-/?utm_source=feedburner&utm_medium=feed&utm_campaign=Feed%3A+kpbs%2Fmidday-edition+%28KPBS+Podcast%3A+Midday+Edition%29

  • TheBigPicture TheBigPicture

    Dig up that plant and replace with solar-wind technology. It's in the worst physical location for putting the U.S. in danger, as the whole country is downwind from it.

    It's over for nuclear, but we need to speed the decommissioning and replacing of them.

  • razzz razzz

    Momentum shift seems to have occurred. Have to wait for the final results.

    Like to see some criminal charges brought in the future. These civil fines are written off to the cost of doing business like losing some chump change.

  • razzz razzz

    Sent Arnie some beer money via Paypal, I think he deserved that much.