[UPDATED] Minnesota-based Xcel Energy Inc. has settled its legal dispute with Babcock & Wilcox Nuclear Energy of Charlotte, N.C., agreeing to pay $36 million out of $45 million that B&W says it was owed.
The settlement also covers pending litigation with SNC Lavalin Nuclear of Montreal, Canada, a defendant in the case.
The dispute involved a $280 million replacement of massive steam generators at the Prairie Island Nuclear Generating Plant in Red Wing, Minnesota, which was completed in 2013.
Xcel then paid $71 million out of B&W’s $116 million bill.
At the time, Xcel blamed B&W for the higher than expected bill. The utility claimed at one point that B&W owed it $3 million.
The utility’s 1.2 million consumers are concerned about how much the overruns will affect their bills. Xcel was given approval by the state to impose a 6.1 percent rate hike over two years, which would raise $168 million, the Minnesota Star Tribune reported.
Xcel currently is seeking permission to charge for debt servicing charges incurred when it borrowed to pay for upgrades at the Monticello Nuclear Generating Plant 35 northwest of Minneapolis, which is also operated by Xcel subsidiary Northern States Power Company – Minnesota.
The Public Utility Commission has already turned down the utility, but Xcel is appealing that decision. The $778 million upgrade was 80 percent over budget, the newspaper said.
The 1,677-MWt Prairie Island reactor has been in operation since 1974 and has a current license that runs to August 2033. The 2,004 MWt Monticello power plant was issued a renewed license in 2006, which is good through September 2030.