This Day On The Street
Continue to site right-arrow
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

SCE Demands That Mitsubishi Submit To Contractually Mandated Audit

Stocks in this article: EIX

Southern California Edison (SCE) today announced that it has formally demanded that Mitsubishi Heavy Industries agree to undergo a contractually mandated audit of Mitsubishi's design and manufacture of Replacement Steam Generators (RSGs) for the San Onofre nuclear plant. On Sept. 20, the Nuclear Regulatory Commission (NRC) concluded that a flaw in Mitsubishi's computer model led to the failure of the Replacement Steam Generators. The NRC's investigation also uncovered internal Mitsubishi consultant materials that expressed concerns about Mitsubishi's computer model.

Edison's latest formal audit demand, set forth in a letter from SCE president Ron Litzinger, can be found at http://www.songscommunity.com/docs/093013_letter.pdf. The letter notes that SCE “officials and lawyers have made this [audit] request on at least three prior occasions, but Mitsubishi has steadfastly refused to date to submit to this audit.” Litzinger wrote that he was appealing once again “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.”

The SCE audit demand letter says that “[t]he contractual language requiring Mitsubishi to undergo this audit could not be clearer . . .: Section 1.9.6 of the contract gives [SCE] the right to ‘examine and copy’ Mitsubishi's ‘books, accounts, relevant correspondence, specifications, time cards, drawings, designs, and other documentation, to the extent that these are related and relevant to the Work under the Purchase Order[.]’”

In repeatedly refusing to submit to the audit, Mitsubishi has argued that this contractual language applies only to financial information necessary to support invoices. SCE’s demand letter characterizes Mitsubishi's excuse as “disappointing” and says that it “will only confirm the suspicion that Mitsubishi refuses to be transparent.”

Litzinger's letter concludes by saying that SCE “stands ready to begin the audit as soon as Mitsubishi advises that it will abide by the straightforward terms of the contract.”

1 of 2

Check Out Our Best Services for Investors

Action Alerts PLUS

Jim Cramer and Stephanie Link reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

Jim Cramer's protégé, David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
Try it NOW
Try it NOW
Try it NOW

Check Out Our Best Services for Investors

Dividend Stock Advisor

Jim Cramer's protégé, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
Try it NOW
Try it NOW
Try it NOW
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!

Markets

DOW 17,672.60 -141.38 -0.79%
S&P 500 2,051.82 -11.33 -0.55%
NASDAQ 4,757.8790 +7.4820 0.16%

Partners Compare Online Brokers

Free Reports

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs