Babcock & Wilcox Nuclear Energy, a major subcontractor in an 18-month upgrade project at Prairie Island nuclear power plant in Red Wing, Minn., has filed a $45 million lawsuit against Xcel Energy Inc. over alleged overruns incurred while replacing two massive steam generators.
The $285 million project, which was completed in December 2013, went over budget in part because Xcel decided to work on its own projects, while B&W was trying to complete their work, the lawsuit says. It also says workers had to change in and out of protective gear as they went through a portal, which slowed them down.
The lawsuit also has a whistle-blower aspect to it, as B&W claims that Xcel was not forthright about costs with both the Minnesota Public Utilities Commission during rate hike discussions, nor with the Wisconsin Public Services Commission, which covers a state where many of the plant's customers live.
Neither B&W, nor either of the state agencies would comment on the case, but Xcel spokeswoman Mary Sandok, breaking a tradition on silence about pending legal actions, said the case was without merit, the Star Tribune reported.
In a legal filing, B&W says Xcel's communications with regulators in Wisconsin were apparently “disingenuous and in bad faith.”
The primary contractor in the case, SNL-Lavalin Nuclear Inc. of Pittsburgh is also named as a defendant, but is not considered as culpable as Xcel, as SNL-Lavalin did forward B&W's invoices to Xcel, which Xcel has refused to pay, the lawsuit says.
The work involved replacing two 40-year-old steam generators at Prairie Island's Unit 2 with 330-ton replacements that were built in France. The project required 1,500 workers and involved moving the new generators through a hatch with only inches to spare on either side.
The lawsuit says the interest on the overdue payments comes to $22,000 per day.